You are on page 1of 19

THE EFFECT OF BRAND COUNTRY OF ORIGIN ON CONSUMERS BUYING

BEHAVIOR OF CARS
Study Case of Middle Class Consumer in Jogjakarta




Author:
LUTHFI FARHANA
MEYWINDA RITYA









2

I . I NTRODUCTI ON
In general, Indonesia is one of the most potential in the automotive market Asia. In its
development , until now, there are about 31 brands that are managed by Single Agent Brand
i.e. 11 brands from Japan, 4 from Korea, 6 from Germany, 2 from England, 3 from the United
States and the rest of each 2 are from France, one from Sweden and two from Indonesia.
Based on the country of origin, market automobile industry in Indonesia is dominated Japan
with a market share reached 93.37 percent. The remaining contested cars from Korea,
Germany, France, Sweden, UK, U.S. and Indonesian local automobile. According to the
number of passengers and size of cylinder, known as a multi -purpose van (MPV) is the most
popular car with a market share of 74.7 percent (Markplus, 2007).
Automobile industry in Indonesia seems has been being in the fast growth condition,
according to the Association of Indonesian Automotive Manufacturers (Gaikindo). It stated
that car sales expanded higher than expected in the first quarter of this year to 328,254 units,
a 10.93 percent year-on-year increase (Linda Yulisman, Jakarta Post; April 2014).
Therefore, Auto sales in Indonesia, Southeast Asia's largest economy, grew 17.8 percent in
March from a year earlier, led by Toyota Motor Corp, Daihatsu Motor Co Ltd and Mitsubishi
Motors Corp, data from industry association Gaikindo showed on Thursday. Indonesia is set
to overtake Thailand as Southeast Asia's biggest car market as early as this year, driven by an
expanding middle class and growing demand for budget, environmentally friendly vehicles,
company executives and analysts said (Eveline Danubrata and Amy Sawitta Lefevre, April
2010). Competitive pressures and increasing complexity have led automotive companies to
look for an edge wherever they can find it (Dixit, 2007). Thus to find out the edge,
automobiles marketer should understand more about car consumer buying behavior. So that
they will be able to know what customer perceive as a value that can attract them to finally
buy a car.
Nevertheless, the number of car industry now has decreased since there are a number
of brands that disappeared from the market as Daewoo, Fiat, and Timor. But there are also
several industries that have expanded their businesses and increase production capacity. In
situations where there are a large number of car industry assemble foreign cars in Indonesia
that compete with imported cars, it. This enables testing of local ethnocentrism among
imported cars classified as foreign and locally made cars are considered as local products,
and to be succeeding in today's fierce market competition, enterprises must consider the
customer attention, grabbing customers from competitors, retain and develop them to provide


3

better value. However, before company can satisfy customers, companies need to understand
their needs and desires. Thus, a good marketing effort requires analysis depth on the
consumer.
Schiffman and Kanuk (2007) explain that the needs and wishes of the consumers
become the main focus of the company. Oriented marketing philosophy to consumers is
known as the marketing concept. The key assumptions underlying marketing concept is that
for success, companies should determine the need and the desire of certain type on target
market and deliver the desired satisfaction better than competitors. The marketing concept is
based on the premise that marketers need to create what can be sold, rather than trying to sell
what that has been made. The marketing concept focuses on the needs of the buyer. For
identify unmet consumer needs, companies must engage research deep marketing. They
know that the needs and priorities of various dramatically different customer segments, and to
design products and strategies that the new company that can meet the needs of consumers,
they must learn consumers and their consumption behavior in depth. In the era of
globalization and liberalization of trade today, consumers in countries faced with the choice
of local brands and foreign brands. use foreign brands is a way to convince consumers
through the perception of country of origin that the product is the result abroad that have
good quality than local . Confidence and feeling like foreign brands will influence consumer
perceptions and attitudes toward the product. Consumers are becoming more trust with
products made overseas than domestically produced or local brands. Products with foreign
names have seen the quality and prestige which is more than the local products (Simamora ,
2003).
Most of the people of developing countries , especially Indonesia still considers the
product outside the country better than domestically , especially in automotive products like
cars . Consumers in determining purchase decisions these products by considering some
aspects of country origin which are country of manufacture, brand country preference which
also define the attributes of the product (brand and price) as useful information for determine
the decision to purchase a product. The impact of product country of origin on the purchasing
decisions of consumers has become an important issue for researchers consumer behavior and
marketing as a marketing manager (Haubl , 2006).
Many studies reveal that the evaluation by consumers above a certain product is not
only based on physical attractiveness and characteristics product alone, but also by country of
origin (country of origin = COO) which referred to the country - of- origin effect is any effect


4

of the country of origin the positive and negative perceptions of consumers for certain
products and brands. The perception of each individual in each country tend to differ
depending on the how important the impact of COO for purchasing decisions that they do. By
implication, the reputation of a country may vary in every state and may change through
time. Thus, the image of the country is not uniform. For example, Swiss-made watches
favored in Europe and sold at a large margin, but in Japan, the customer was more like a
watch made in Japan alone. While in American, Swiss-made timepiece preference to vary
between regions.
For most people, purchasing a car is the second most important and expensive
investment, Next to purchase of a house; for the automotive manufacturers, first-time car
buyers give them the opportunity to create positive brand image which definitely could be
reflected on in next coming years because consumers could make repeat car purchasing. The
passenger car market changed very rapidly due to the fierce competition and advanced
technology, therefore, it requires the automotive manufacturers and car dealers to understand
the consumers preference on time and take fast actions to reflect market changes quickly(
Dongyan,L.,& Xuan, B., 2008) .Therefore the study of consumer buying behavior toward
cars is needed.
Besides that, there are certain car brands from certain country of origin that has
different rate of sales. Thus, some brands from a particular country of origin like Japan have
ruled the Cars market share in Indonesia. Moreover, considering the result of previous
research about buying behavior toward car country of origin that conducted in USA, the
country of origin is not affected the buying behavior of customer in USA. It stated in the
study that the study has found only product quality positively influences US consumers
buying behavior. This fact implies that to establish strong market position in the marketplace,
particularly in the US market, companies need to provide high quality products and enhance
nation brand through active advertisement and promotion ( Chinen, K., & Sun, Y., 2011).
Contradictory to the findings by Klein (2002), the evidence is not consistent with some
general arguments that image of a country or ethnocentrism can influence purchasing
decisions.
Based on this background, we are interested in conducting research about the effect of
country of origin on consumer buying behavior on car purchase in Yogyakarta.



5


I I . PROBLEM STATEMENT & RESEARCH QUESTI ON
From the statement above, the main points that actually want to be found is How is
the effect of the country of origin (COO) on consumers quality perception, price
perception, and purchase intention as the form of consumer buying behavior of cars
purchase in Yogyakarta. Thus, from those general questions, these are the more specific
questions that we would like to found the answers in this group research.
1. Does country of origin affect consumer buying behavior?
2. Does country of origin has significant effect on consumer quality preception of
cars?
3. Does COO has significant effect on price preceptions of cars?
4. Does COO has significat effect on purchase intention?

I I I . OBJ ECTI VE OF THE STUDY
The main purpose of this research is to provide valuable new insights of the COO effect on
quality perception, price perception, and purchase intention of cars in the Yogyakarta
automobile market. The research is designed to provide information about the COO effect of
multiple countries, and tested in midle class car segments
I V. SI GNI FI CANCE OF THE STUDY
For Researchers
The finding of this research would be able to be used as an additional knowledge
regarding the researcher study focus which is in marketing. It can broaden the researchers
understanding about consumer buying behavior and its relationship toward country of origin.
For the Marketers
The result of this research will provide deeper understanding of the relationship
between country of origin and consumer buying behavior. As stated above, understanding the
consumer buying behavior is very critical for a marketer. Thus it can increase sales and help
marketers develop better marketing strategy.




6


V. LI TERATURE REVI EW
A. Consumer Buying Behavior
The consumer buying behavior has been a debatable topic for the past so many
decades around the world; previously many researchers have studied this topic and found
exploratory findings in different contexts. The central purpose of the study is to investigate
the impact of product price and product quality of consumer buying behavior. The marketer
must inspect the consumer buying behavior by consumer psychological behavior and social
concerns, Shabbir et.al (2012).
Understanding consumer behavior and knowing customers is not simple. Customers
may say one thing but do another. They can get influenced and change their mind the last
minute. Or their needs or wants change from time to time. Consumer buying behavior refers
to the buying behavior of final consumers- individuals and households who buy goods and
services for personal consumption (Kotler, P., Armstrong, G., Wong,V., Saunders, J. (2008).
Principles of Marketing. (5th ed.). England: Pearson Education Limited.). Kotler et al. (2008)
agree that the next factors strongly influence the buying behavior of consumers: cultural,
social, personal and psychological factors. The consumers choice therefore results from the
complex interplay of all these factors. Although the marketer cannot influence many of these
factors, they can be useful in identifying potential customers to serve their needs better.
Thus, one of the factors that affecting consumer buying behavior is phychological
factors which consist of Motivation, perception, learning, belief and attitude. Kotler defines
belief as descriptive thought that a person holds about something and attitude as a
persons enduring favorable or unfavorable cognitive evaluations, emotional feelings, and
action tendencies toward some object or idea .Individuals can have specific beliefs and
attitudes about specific products and services. Marketers are interested in the beliefs that
people formulate about specific products and services because these beliefs make up product
and brand images that affect buying behavior. If some of the beliefs are wrong and prevent
purchase, the marketer has to launch a campaign to correct them. A consumer may believe
that Sonys Cyber-shot camera takes the best HD video, is easiest to use, and is the most
reasonably. Further, that literature review of consumer buying behavior end up with a
hypotesis consumer might has specific belief on car brands country of origin that affect their
car buying behavior.


7


B. Country of Origin
The history of country image dates back to 1970, when Nagashima wrote about it in
an academic paper. In a statement about country image defined it as a special image,
stereotype and standing, which customers have in their mind about specific country, this
picture can be shaped by historical, economical and traditional variables (L. Y. Lin & Chen,
2006). In addition, country image is one of the first variables that researchers test in
according to foreign product and also carry on in international business and consumer
behavior studies (Kotler, 2011). Studying issues concerning country image has been
prominent in international business for many years. There is considerable literature on this
topic, which has caused misunderstandings among researchers about this subject (Laroche,
Papadopoulos, Heslop, & Mourali, 2005). Martin and Eroglu, in 1993, added that country of
image usually refers to the economical, political, technological and social part of each
country. In addition, several researchers believe that this issue (country image) is about
product characteristics. In some studies country image is representative of the country and its
people, and, also, it can be shaped by experiencing the products from before. Studies show
that there is considerable literature about how country of image affects the purchase intention
of customers (C. L. Wang, et al., 2012). Consequently, country image in respect of customer
purchase intention is one of the most significant subjects among marketers for supporting
their manufactured goods. The attention to this issue is because many researchers have
demonstrated that a countrys image influences the prior purchase decision of customers.
These kinds of investigation about country image and other related subjects dates back over
three decades in developed countries (YAMOAH, 2005).
Martin and Eroglu (1993) added that the macro point of view can be defined as the
overall data and explanatory beliefs gathered from a specific country. Some scholars believe
that country image is because of the halo effect, especially when the manufactured goods of a
country are not well-known to people, as it affects their opinions and, ultimately, the
products attributes and brand. The other point of view, which is contrary to the previous
statement is that country image acts as a review construct, which means that the country of
the product is memorable to customers and they are familiar with it and have experience
about it. The level of involvement of products is very important in product evaluation, as a
clear cut example, when people want to buy goods like wine, cosmetics, cigars or caviar, the
country image and country of origin play a significant role in the purchase decision.


8

However, it may have less effect on products with low involvement like T-shirts. By
considering all the statements of researchers, it can be concluded that, the insight of people
about products can be dependent on the country in which they are made. Therefore, country
image has the power to affect customer belief and evaluation.
It also has the power of making a weak or strong product, and, if it matches with the
product, it has a positive effect, and, if not, it has a negative one; for example: BMW and
Mercedes as German automobiles have a viable advantage because of the famous engineering
that Germany is renowned for. In contrast, the royalty of Britain, fish and chips and the land,
show that this country is not renowned for engineering in airline services and the automobile
industry. Country image is not an important issue just for consumers and marketers, as it also
plays an important role for global and international companies. Opinions about country image
vary among different categories of products and the marketing of products is important
according to the country image. When the customer assesses goods, the country of origin and
positive and negative marketing also act as an important variable too (Chao, 1998). Roth and
Romeo (1993) commented that Japan is a high ranked country in country image in respect of
automobiles, as is Germany, which also has a high status (Srikatanyoo & Gnoth, 2002).
Researchers add that Japan is a high rating country and has a good image because of
the design and high value of workmanship. They believe that the next countries with a strong
ranking in image are the USA and Canada, whereas, in contrast, Korea and China are the
lowest rated for country image. The matching between product category and country is
another significant variable in the literature. A powerful match between country and product
means that a specific country specializes in that area. Moreover, strategies to strengthen and
encourage the positive aspects of each product category and country image can be an
effective way. Advertising programs can also help consumers have a good and positive image
about the products country (Dagger & Raciti, 2011) ;(Pappu, Quester, & Cooksey, 2007).
There is also another point of view that considers the country image as emotional acts, which
is because of certain ideas in their mind, which might also be the image from the residents of
a particular country (Maher & Carter, 2011).
Some scholars believe that country image can ease the process of purchase decision,
which is related to country of origin and helps marketers in developing the strategies for
global companies to improve their exports. Kim and Chung (1997) added that studies about
the country image effect can be a good guide for international firms to compete in this global
market. Kara (2001) included that most of the research concerns advanced countries like the


9

USA, Japan and Western Europe, which produce high quality products and are well-known
brand countries which do not provide strong marketing strategies for their product , would
receive little attention (Souiden, Pons, & Mayrand, 2011). One literature suggested that
country image is an indefinable asset and that it makes a helpful contribution to marketing
strategies and sales (Zeugner Roth, Diamantopoulos, & Montesinos, 2008).
Han (1989), Erickson et al. (1984) and Wyer & Hong (1989) suggest that product evaluation
and purchasing behavior are influenced by COO directly, but also indirectly trough beliefs.
The COO influence on product evalution is divided in two major effects: the halo effect and
the summary effect (Han, 1989). The summary effect influences consumers product
evaluation directly, oppositely the halo effect influences consumers product evaluation
indirectly trough beliefs (Figure 2-1). People use COO to summarize product information
when they get more familiar with a countrys product and in the situation when there is a
large amount of product information available, so it is difficult to integrate it in the decision
making process. If there is only a small amount of product information available, people can
use the halo effect of COO to create inferential beliefs about other product attributes that are
not available or cannot be evaluated directly (Hsieh, 2004).
Figure 2-1: COO effect on Product evaluation and purchasing behavior, Hsieh (2004)

After all these studies that examined the relationship between COO and product
evaluations, we found evidence for the COO effect in a variety of situations with different
independent and dependent variables. Therefore, we formulate the hipothesis below
H1: The country of origin affect consumer buying behavior
C. Quality Preception
Product Quality encompasses the features and characteristics of a product or service
that bears on its ability to satisfy stated or implied needs. In other words, product quality is
defined as fitness for use or conformance to requirement (Russell and Taylor, 2006).
Quality refers to the correctness or appropriateness of an activity or fitness of an entity; it is
compliance to a certain standard. the quality movement in the industrial world, beginning
with Shewharts control chart technique (Shewhart, 1931), incorporating the views of
operations, systems, behavioural, management function school, and encompassing Western


10

and Eastern approaches, led to the development of the concept of TQM. Walter A. Shewhart
viewed quality from two related perspectives: the objective and subjective side of quality
(Shewhart, 1931). The first perspective views quality as an objective reality independent of
the existence of man.
In contrast, the subjective side of quality considers what we think, feel, and sense as a
result of the objective reality. Zeithaml (1988) provides an overview of a debate regarding
differences between objective and perceived quality. In accordance, the theory of attractive
quality concerns the relationship between the objective performance of, and customer
satisfaction with, an attribute. Within service management, the theory of attractive quality has
been applied extensively. The theory of attractive quality explains how the relationship
between the objective performance and customer satisfaction with an individual product or
service attribute is dependent on how customers evaluate a product or offering (Kano et al.,
1984; Kano, 2001).
Customer focus practices reflect the fundamental principle of quality management
customers are the ultimate judge of quality performance (Evans and Lindsay, 2005). To
satisfy customers, an organization needs to identify customers needs, design products and
production systems to meet those needs, and measure the results as the basis for
improvement. Exploitative-oriented practices pay more attention to measuring to what extent,
an organization has addressed customers current needs and wants consistent with
conformance quality. Exploratory-oriented practices aim to identify new customer needs and
desires; these practices occur from the early stage of product design and are consistent with
the concept of design for quality (Juran and Godfrey, 1999). According to a study by
Ferdows (1997), firms that outsource manufacturing aim to provide high quality products at
comparatively low prices. This factor combined with increased consumer awareness of
quality has forced manufacturers in emerging economy countries to place more emphasis on
developing technological capabilities, establishing supply networks, and enhancing quality
management systems (Lee and Zhou, 2000). Quality management has long been recognized
as a source of competitive advantage and one of the most important drivers of global
competition (Prajogo and Sohal, 2003). Quality therefore, is critical if manufacturers are to
achieve world class manufacturing and it has been identified as a crucial factor for
sustainable development of ASEAN manufacturers (Phusavat and Kanchana, 2008).
H2: the country of origin has significant effect on consumer quality preception of cars


11

D. Price Preception
There are a number of mental prices developed as consumers shop for products. These
mental prices may be conceptualized as of two types: market-framed and personal (Garbarino
and Slonim, 2003). A market-framed price is one that uses information about the market
place as a frame of reference. One such market-framed internal price is termed reference or
expected price, referring to the price that consumers expect to pay for the product at some
future time (Thaler, 1985). Although price is a rather limited view of technical quality, it is
usually considered as a trade-off between the financial offer a consumer is willing to pay in
return for the perceived product value (Simon, 1989). Hence, the sensitivity of the consumer
to price changes reflects the importance consumers attach to the value of the core product.
According to Cadogan and Foster (2000), price is probably the most important
consideration for the average consumer. Consumers with high brand loyalty are willing to
pay a premium price for their favoured brand, so, their purchase intention is not easily
affected by price. In addition, customers have a strong belief in the price and value of their
favourite brands so much so that they would compare and evaluate prices with alternative
brands (Evans et al., 1996; Keller, 2003). Consumers satisfaction can also be built by
comparing price with perceived costs and values. If the perceived values of the product are
greater than cost, it is observed that consumers will purchase that product.
Loyal customers are willing to pay a premium even if the price has increased because
the perceived risk is very high and they prefer to pay a higher price to avoid the risk of any
change (Yoon and Kim, 2000). Basically, long-term relationships of service loyalty make
loyal customers more prices tolerant, since loyalty discourages customers from making price
comparison with other products by shopping around. Price has increasingly become a focal
point in consumers judgments of offer value as well as their overall assessment of the
retailer (De Ruyter et al., 1999).
According to Bucklin et al. (1998), price significantly influences consumer choice and
incidence of purchase. He emphasized that discount pricing makes households switch brands
and buy products earlier than needed. Price is described as the quantity of payment or
compensation for something. It indicates price as an exchange ratio between goods that pay
for each other. Price also communicates to the market the companys intended value
positioning of its product or brand. Price consciousness is defined as finding the best value,
buying at sale prices or the lowest price choice (Sproles and Kendall, 1986). Additionally,


12

consumers generally evaluated market price against an internal reference price, before they
decide on the attractiveness of the retail price.
We including the price aspect in our research because the price variable is the
evaluation criteria contain certain dimensions or attributes used in assessing the choice
alternatives. Alternative criteria may appear in various forms, for example in a consumer's car
buying might consider which is more important, price or country of origin
H3: Country Of Origin has significant effect toward price preception
E. Purchase Intention

According to Kotler (2000), purchase intention means attempting to buy a product .
Consumer behaviour occurs when consumers are stimulated by external factors and come to
a purchase decision based on their personal characteristics and decision making process.
These factors included choosing a product, brand, a retailer, timing, and quantity. This
means consumers purchasing behaviour is affected by their
choice of product and brand. Consumers purchase intentions always arise after consumer
perceived value and perceived benefit. Model The following Extrinsic and Intrinsic attributes
were used for the study. Extrinsic attributes: Customer perception
of Brand prestige, Celebrity endorsement and Price. Intrinsic attributes : Quality and Physical
appearance The independent variables selected for the study are: Quality, Celebrity
endorsement, Price, Physical appearance and Prestige. The dependent variable is purchase
intention.
The previous study already examine consumers attitude and assessment and external factors
construct consumer purchase intention, and it is a critical factor to predict consumer behavior
(Fishbein & Ajzen, 1975). Purchase intention can measure the possibility of a consumer to
buy a product, and the higher the purchase intention is, the higher a consumers willingness is
to buy a product (Dodds, et al., 1991; Schiffman & Kanuk, 2000). Purchase intention
indicates that consumers will follow their experience, preference and external environment to
collect information, evaluate alternatives, and make purchase decision (Zeithaml, 1988;
Dodds et al.,1991; Schiffman & Kanuk, 2000; Yang, 2009).Chi, et al.(2009)proposed that an
advertising endorsers popularity, expertise, and attractiveness can appeal consumers
eyesight in a short time and increase purchase intention. Anand, Holbrook, and Stephens
(1988), and Laroche, et al. (1996) also testified that advertising endorsers exposure rate can
change consumer preference and attitude and promote purchase intention. Advertising


13

endorser can utilize TV commercials or Newspaper or magazine advertisings to enforce a
products exposure rate and consumers brand attitude and knowledge to elevate purchase
intention (Miciak & Shanklin, 1994). MacInnis, et al.(2002) considered that endorser
marketing can give an endorsed product a brand new image and advance consumer purchase
intention. Moreover, consumers brand attitude and purchase intention will be higher when a
product has high preference image and familiarity (Kamins & Marks, 1991; Laroche, et al.,
1996). Wang (2006) used brand image as independent variable, product category as
moderator, and purchase intention as dependent variable and found that the higher the brand
image is, the high er the purchase intention is. Fournier (1998) discovered that if a brand
provides product functions that meet consumers need, consumers will produce psychological
associationsand an irreplaceable relation with the brand which they will subjectively maintain
interaction with the brand and raise their purchase intention accordingly.Furthermore,
consumer purchase intention comes from consumers perception on benefits and values
acquisition, and it is a important key to predict consumer purchase behavior. Therefore the
researcher would like to test the hypotesis below.

H4: The country of origin has significant effect on purchase intention.

Purchase intention is used many times as a dependent variable in COO research. Although it
is quite a speculative term, it is still widely regarded as a meaningful variable, Spiele (2013).
The COO effect on purchase intention is measured by using a scale, written by Grewal,
Monroe, & Krishnan (1998). The main items of the scale are: 1) the likelyhood of purchasing
the product. 2) The probability of considering buying the product. 3) The probability of
buying this model, when buying a car.






14

VI. THEORITICAL FRAMEWORK






VII. RESEARCH METHODOLOGY

1. RESEARCH DESIGN
According to Kotler & Armstrong (2011) research can be divided in three types, dependent
on the objectives of the research. Exploratory research (1) is conducted to collect preliminary
information in order to define problems and develop hypotheses. Descriptive research (2) is
used to describe a products market potential, or information related to potential customers
such as buying behavior and demographics. Causal research (3) is used to investigate
relationships between certain causes and effects. Hypotheses are formed to reject or support
the relationship. Although this research has interfaces with all types, the main objective is to
investigate the relationship between a products COO and its effect on consumers buying
behaviour. Therefore, this research should be classified as a causal research.
There are no secondary data available since the COO effect on cars is never tested from
Yogyakarta perspective; therefore the gathering of primary data is required to estimate the
COO effect on cars from Yogyakarta consumer perspective. Primary data can be collected by
observational research, survey research, and experimental research. Observational research
collects primary data by observing relevant actions, people, or situations without interference
of the researcher. Survey research collects primary data by asking questions about peoples
preferences, buying behavior etc. Experimental research can be defined as: Gathering
primary data by selecting groups of subjects, giving them different treatments, controlling
related factors, and checking for differences in group responses (Kotler & Armstrong,
2011). Regarding the objectives and the type of this research, the Survey research approach is
chosen to collect the data.


Consumer Buying Behavior

Country of Origin
(Japan, Korea, America)
Quality Preception
Price Preception
Purchase Intention


15

2. UNIT OF ANALYSIS
Consumer buying behavior, the variables that associated to consumer
buying behavior are consumer quality preception, consumer price
preception and purchase intention. Thus for examing the influence of
country of origin toward consumer buying behaviour, it can be analized
trough measuring how strong consumer perceived value toward brands
came from some particular country. If consumer purchase intention is
only focused on some particular COO while there is a positive relationship
with the preception of quality or price, meaning that there is significant
influence of COO toward consumer buying behavior.
3. SAMPLING DESIGN
The population of this research are Yogyakarta society who has ever
purchase car . The respondent will be asked to filled the questionare which
questioning about cars from those country. This research plans to have 150
respondent.
4. DATA COLLECTION METHOD
The data colection will be done by self administered questionare. To be the
respondent of this research, the prospective respondent will be asked
wether they have ever buy cars. If they say no, that respondent will not be
asked to continue in partisipating in this research.
5. VARIABLE MEASUREMENT
The independet used in this research is Country Of Origin and the dependet variable
used is Consumer Buying Behavior. Thus, CBB will be measured using 3 variables,
those are consumer price preception, consumer quality preception and consumer
buying intention. These variable is adopted from the previous research done by Spiele
(2013). However it is not fully adapted by the reason of different demographic
condition. The demographic condition of the previous research which was done in
Dutch are more dynamic so that the previous researcher can use 3 segment of cars
such as economic, luxury and electrical. Furthermore, in jogyakara most of the sociaty
are middle class, Setiawan (2012). Therefore, the 3 segment used in previous
research is not apropirate in this study.
6. DATA ANALYSIS METHOD
The data analysis will be done by using SPSS



16

VI I I . REFERENCES
Aaker, D., Batra, R., & Myers, J. (1992). Advertising Management 4th edition. Englewoods
Cliffs, NJ: Prentice-Hall International.

Aaker, J. (1996). Building Strong Brands. New York: The Free Press. Advising on research
methods: a consultant's companion. Huizen, The Netherlands: Johan van Kessel
Publishing.

Agrawal, J., & Kamakura, W. A. (1999). Country of origin: A competitive advantage?
International Journal of Research in Marketing, 255-267.

Ahmed, S. A., & d'Astous, A. (1993). Cross-national Evaluation of Made-in Concept Using
Multiple Cues. European Journal of Marketing Vol. 27 Iss: 7, 39-52.

Ahmed, Zafar U, James P Johnson dan Lim Chee Boon. (2008). Does country of origin
mater for low-involvement products?, International MarketingReview. Vol. 12,
No. 1, pp. 102-120.

Ajzen, I. (2008). Belief, attitude, intention and behavior, an introduction to theory and
research. Massachusets: Addison, Wesley Publishing Company.Alba, J. W., dan J.
W. Hutchinson. (1997). Dimensions of consumer expertise, journal. of consumer
research 13(March):411-454.

Al-Sulaitu, K., & Baker, M. (1998). Country of Origin effects: a literature review. Marketing
Intelligence and Planning 16, 150-199.

Badri, Masood A, Donald L Davis, dan Donna F Davis. (2007). Decision support for
global marketing strategies: the effect of country-of-origin on product evaluation,
journal of product and brand management, Vol. 4, No. 5, pp.49-64.


17

Berkowitz, Earl, dan Naumann. (2002). Creating costumer value: the path to
sustainable competitive advantage. United State of America: Thompson
Executive Press.

Bethlehem, J., & Biffignandi, S. (2012). Handbook of Web Surveys (Wiley Handbooks in
Survey Methodology). New Jersey: John Wiley & Sons.

Bilkey, W. J., & Nes, E. (1982). Country-of-Origin Effects on Products evaluations. Journal
of International Business Studies Vol.13, No. 1, 89-99.

Chandrasen, A., & Paliwoda, S. J. (2009). Country of Assembly (COA) effect on perceived
automobile quality: a Thai consumers' perspective. Journal of Marketing
Management Vol.25, No.5-6, 483-499.

Chao, P. (1993). Partitioning Country of Origin Effects: Consumer Evaluations of a Hybrid
Product. Journal of International Business Studies Vol. 24, No. 2, 291-306.
Chen, G., & Starosta, W. J. (1998). Foundations of Intercultural Communication . Boston :
Allyn & Bacon.

Chinen, K., & Sun, Y. 2011. Effects of Country-of-Origin on Buying Behavior: A Study of
the Attitudes of United States Consumers to Chinese-brand Automobiles.
International Journal of Management, 28(2).

Dongyan, L., & Xuan, B. 2008. Car Purchasing Behaviour in Beijing: An Empirical
Investigation. A thesis.

Gudero, F. K. 2001. The Effect of Country of Origin of a Product On Consumers Buying
Behavior. A thesis.

Hu, X., Li, L., Xie., & Zhou, J. 2008. The effects of country-of-origin on Chinese consumers
wine purchasing behaviour. Journal of Technology Management in China, 3(3).


18

Ismail, Z. 2011. Buying Behavior: Gender and Socioeconomic Class Differences on
Interpersonal Influence Susceptibility. International Journal of Business and Social
Science, 2(4).

Kotler, P., Armstrong, G., Wong,V., Saunders, J. (2008). Principles of Marketing. (5th ed.).
England: Pearson Education Limited.

Lopes, I. B. 2012. TheCountry of Origin Effect for Brazilian Fresh Fruits: A Study Using
Partial Least Squares Procedures. Journal of Management Research, 4(4).

Nagashima, A. (1970). A comparison of Japanese and US attitudes toward foreign
products journal of marketing. Vol. 31.

Setiawan, B. 2012. http://pojokbursa.widyatama.ac.id/kelas-menengah-konsumtif-dan-

Shabbir, G., Niazi, K., Siddiqui, J., Shah, A., Hunjra, I., (2012). Effective Advertising and its
Influence on Consumer Buying Behavior, Information Management and Business
Review,4(3), 14-119.

Singrutam, W. 2013. Analysis of Research on Consumer Behavior: Impact of Country of
Origin Dimensions on Purchase Intention of Eco Car. International Journal of
Business and Management, 8(11).

Spiele, L. (2013). Country of Origin Effect on Dutch car market, Master thesis marketing.


Verlegh, P. W., & Steenkamp, J.-B. E. (1999). A review and meta-analysis of country-of-
origin research. Journal of Economic Psychology 20, 521-546.



19

Vinson, D. E., Scott, J. E., & Lamont, L. M. (1977). The Role of Personal Values in
Marketing and Consumer Behavior. Journal of Marketing 41, 44-50.

Vito, J. D. (2002). Essentials of human communication . Boston : Allyn and Bacon.

Wang, C.-K. (1978). The effect of foreign economic, political and cultural environment on
consumers' willingness to bu foreign products. Ph.D. dissertation. Texas: A & M
University.

Watson, J., & Wright, K. (2000). Consumer ethnocentrism and attitudes toward domestic and
foreign products. European Journal of Marketing , 1149-1166.

Webster, J. F., & Wind, Y. (1972). A general model for understanding organizational buying
behavior. Journal of marketing 36, 12-19.

Wyer, J. R., & Hong, S.-T. (1989). Effects of Contry-of-Origin and Product Attribute
Information on Product Evaluation: An Information Processing Perspective.
Journal of Consumer Research Vol. 16, No. 2, 175-187.

Yaprak, A. (1978). Formulating a Multinational Marketing Strategy: A Deductive Cross-
National Consumer Behavior Model. Georgia: Georgia State University, College of
Business Administration .

You might also like