Product Comparison Between Local and

International Brand: Product Attributes,

Brand Equity, Country-Of-Origin
Dewi Purnamasari1, Dwi Irianto2, Yuniasari Megandini3
1,2,3Business Administration Department, Bandung State Polytechnic, Bandung 40559, Indonesia

ABSTRACT

Despite the fact that many research explained about the influence of country-of-origin
towards buying decision, but not many research emphasize the indirect influence of
country-of-origin towards buying decision in low-involvement product (consumer
goods). This research analyzed the comparison of low-involvement product in case:
Walls and Campina, using product attributes and brand equity which indirectly
examined the comparison of country-of-origin from both products. Using 574 responses
from Bandung, Indonesia, with proven from the result of this research that international
brand (Walls) is more superior compared local brand (Campina). However, brand
equity from Campina (local brand) influences significantly and this result proved that
consumers more interest if local brand developing brand equity than product features.
The finding of this research confirmed that international brand more superior than local
product in product attributes and brand equity.

Keyword: Product Attribute, Brand Equity, Country of Origin, Compare Wall's and
Campina Product.

I. INTRODUCTION consumer's perspective is consumers

Nowadays, the advancement of
economic and business has changed
many landscapes of global trading in
recent years. It causes the distribution
flow of products goods or services- and
also labour from one country to another
becomes unstoppable [1]. Therefore,
there is increasing competition in a
country, not only between local brand but
also international brand as well. In
competitive era, offering quality products
is a requirement for every company who
want survive in the market then maintain
consumer satisfaction and consumer
loyalty. The logic consequence from this
situation based on
have many choices of brand for a product
local or international- so that they will
make consideration and comparison
first using many indicators such as
product quality, price and country-of-
origin as an extrinsic cue in making
purchase decisions.
Relating to the importance of
knowing the influences of country-of-
origin which is influencing consumer's
purchasing decisions, many studies have
made it as the main topic in their study.
Those studies have many significant
influences on product quality perceived
by consumers. That indicates that
country-of-origin influences positively
on consumer's purchasing decisions [2-4].
In contrast, study conducted by Olson
and Jacoby [5] shows that country-of-
origin has limited influence to determine
the perception of consumer quality. Thus,
this shows that country-of-origin not
always affect consumer perception of
international brand because in some
situations the influences also depend on
the kind of products being observed.
However, some past studies emphasize
in the effects of country-of-origin on high-
involvement products but for study that
explains low-involvement products or
consumer goods still a little. Finally, how
the influences of country-of-origin on
product quality perceived for low-
involvement products or consumer goods,
in this case is ice cream, still unknown.
The aim of this study is to get
understanding about the differences
from local and international brand on
ice cream product and the three
differentiating factors are product
attribute, brand equity and country-of-
origin in Indonesia. The other purpose
of this study is to understand the
influences from those factors in
consumer's purchase decisions for ice
cream products. This study is done
because it is competitive products and
[6, 7]
promising market . Thus, with
understanding of indicators that
purchasing decision for this products
and the other surrounds influences
can help manager of ice cream
product to build the right strategy to
attract their consumers.
2. PROPOSED MODEL
Based on the existing literature,
this study proposes the research model
as represented in Figure 1. Products
attributes, brand equity and Country of
Origin (hereafter referred as COO) are
some factors which are be able to
become standard of comparison
from the products in this study.
Product attributes is the elements
which is belief by consumer and become
a base of decision-making [8]. Based on
the previous study conducted by Bahiu,
Mananeke [9] products quality, products
features and products design are
belonging to products attributes that can
show the comparison between two
products significantly.
Proposed by Aaker [10], brand
awareness, perceived quality, brand
association and brand loyalty are the
dimensions of brand equity. Brand
equity is liabilities assets group from a
brand influencing the value of
products [11]. his variable can explain
the differences between one product
and another significantly referred the
past study by Asisi [12].
A mar k " made i n" is
COO that explains the place where the
products were produced [13]. Belong to
earlier study by Chryssochoidis,
Krystallis [14] COO has significant
affects to distinguish one product and
the other products especially in high-
involvement products. However, in this
study COO will influence those two
other variables then become implicit
variables to know the comparison influences
consumers between two products in low-
involvement products or consumer
goods.
3. RESEARCH METHOD
The construct variables which
used in this research is adaptation from
some previous studies. The objective of
this research is to measure the
comparison between Walls and
Campina using some dimension these
are product attributes and brand equity.
 Figure 1. Conceptual Model of Product
Comparison
Product
Attributes
Product
Brand Equity
Comparison
Country of
Origin
These variabels and indicators
[15-17]
adapted from the previous studies . has got 600 respondents which exceed
Product attributes is the elements which
is belief by consumer and become a base
of decision making [8]. To measure this
variable, researcher adapted six items
from previous studies [15]. Brand equity is
both liabilities and assets group from a
brand that relates with name of a brand,
the symbol which increasing or
decreasing values from a products or
services to either the company or
consumer [11]. To measure this variable,
researcher adapted six items from
[16, 17]
previous studies . COO is the
extrinsic cue to influence consumer
perception and caused an association in
the minds of consumers [10, 18, 19]. While
country-of-origin measured indirectly after
the results of both variables have been
analyzed as a comparison of local brands
and international brands, because in
choosing ice cream products that include
in convenience products, so the
consumers will not think directly where
the product came from [20]. To measure
every item of every variable the
researcher used Likert scale [20].
This study used data collected
from online questionnaire from Bandung
City, Indonesia who will be distributed to
the target respondents in this research,
namely students in university and senior
high school. The researcher used simple
random sampling because the
respondent it's easy to be identified.
Through this method, a questionnaire will
be distributed to the target respondents.
In this research, researcher is targeting at
least as much as 384 respondents fill out
questionnaires, because of the amount of
this population
students university and senior high
school in Bandung approximately
8,000,000 people and with margin of
error of 5% [21]. Moreover, researcher
the target of the respondents who
within four days. The respondent was
approached personally by face to face
and social media. From 600 responses,
the researcher excluded 26 responses
from the data analysis because 26
responses had missing data from some
questions, so the researcher only
analyses the data from 574 responses.
4. RESULT
Respondents characteristics
are shown in the table below.
Table 1 The Respondent demographic
characteristic
Variable Category Frequenc
y
Gender Male 208
Female 366
Age <17 14
17-21 493
>21 67
Revenu <Rp.500.000 231
e Rp.500.000- 221
1.000.000
>Rp.1.000.00 122
0
Before performing testing
model using a more comprehensive
method, validity testing is required
for the data obtained to ensure that
constructs/variables can answer the
research objectives. Similarly, with
reliability testing, this needs to be done to concluded that the indicators are
test whether the respondent who did the built reliable.
charging has given a constant answer or
not to the question items submitted Table 2 shows the result of t-test
through the questionnaire. According analysis from two products, Wall's and
Campina. Based on product attributes
Suhartanto [22] in conducting validation
variable including product quality, flavor
test can use Bivariate correlation method,
variant, packaging, price and product
by way of testing the relationship of each
variant which is offered by Wall's
variable with the average of each item in
significantly different with Campina. It
question, with the cut-off value 0.5. The
means that Wall's concerning product
result shows that all items are significant
to each variable because almost all the attributes has excellence over Campina.
variables and items in it have a In brand equity dimension, Wall's is better
significance value above 0.5. Thus, it can than Campina in consumer's mind. It is
be concluded that each item indicates the proven from study result which shows
measurements tested in this study are that for some variables such as intention
valid. of buying, product dominated, product
uniqueness, and loyalty, Wall's better
In addition to the validation test, than Campina.
researcher also wanted to do the analysis
using factor analysis method to find out On the other hand, for the first
whether the construct/variable that has mind variable there is similarity
been developed by the researcher in between Wall's and Campina. It
developing the research framework is shows that for both products have had
appropriate or not. In other words, factor strong brand in consumer's mind.
analysis can be as proven tools analysis
Table 2 Result of t-test
to verify the truth of a variable formed.
Based on the result of factor analysis
Variable F-value t-value
which has been determined. Therefore, it Product Attributes
can be whispered that the researcher has Product quality 22,466 16,800*
built the four variables according to Variant flavour 11,489 15,450*
empirical, proved by the result that in the Product package 10,222 17,340*
end the variables are grouped into four Price 7,828 -3,301*
different groups of components, which Product
25,859 14,503*
corresponds to the initial constructs that variation
researchers have used in the method this Brand Equity
research. Intention of
45,654 14,936*
buying
To perform the Reliability test, Choices 35,439 18,354*
the Cronbach ' frequently used method
dominated
becomes a

method to measure the reliability of the First of mind 0,842 25,378ns

instrument to be used in measuring Product
constructs [22]. Based on the results of 13,149 9,937*
uniqueness
reliability analysis, shows that each test Intention of
variable used has met the criteria of buying new 16,337 15,647*
reliability because all items of question variant
are above the recommended level (0.6) Loyalty 79,805 10,238*
[23]
. As a result, it can be
ns: not significant, *significant (consumer goods) products. As a result,
different at p<0,01 this study attempts to compare two
consumer goods products from different
Table 3 shows the result of countries -developed and developing
regression analysis from product country- to know its relation toward loyalty
attributes and brand equity toward loyalty and country-of-origin indicators.
(purchase intention) for every product
(Wall's and Campina). This result shows Past studies suggest that product
that loyalty and the desire to rebuy for attributes (internal cues) are influenced by
Wall's products is significantly influenced country-of-origin (external cues), so
consumers often associate a product with
by the product attributes offered and
brand equity of Wall's. Furthermore, the origin of the product [3, 24]. This study
brand equity has a greater impact than also confirms that when comparing
product attributes in shaping consumer product attributes of local and
loyalty on Wall's products. However, for international brands, consumers tend to
Campina product loyalty and the desire to judge that international brands are better.
rebuy just influenced by brand equity that
they have built, not depend on product
Likewise for brand equity, although
attributes offered through their various
there are variables that have
similarities with international brands,
products.
the international brand still shows its
Table 3 Result of Multiple Regression dominance of local brands [3, 25, 26].
Path Coefficient t-value Table 3 shows the relationship
Estimation between construct variable product
Walls attributes, brand equity and country-
Product -0,168 -4,592* of-origin toward consumer loyalty
Attributes=>Loyalty formation as described in theoretical
Brand 0,840 22,998* model. The results show that product
Equity=>Loyalty attributes and brand equity of
Campina international brands significantly
Product -0, 089 - establish consumer loyalty, whereas
Attributes=>Loyalty 2.296ns for local brands only brand equity
Brand 0,710 18,345* influences significantly. Thus, the
Equity=>Loyalty product attributes and brand equity of
ns: not significant, *significant at the international brand can affect
p<0,01 simultaneously to consumer loyalty.

This study is important to be examined

5. DISCUSSION AND
CONCLUSION
However there are many
literatures explained about the
influences of country-of-origin toward
purchasing decisions, but not many
studies emphasize on the influence of
purchasing decisions that influenced
by those factors for low-involvement
more comprehensively because it still
has not concluded in terms of product
comparison. The result of this study
explains that in forming consumer
loyalty, international brand is formed by
two variables, product attributes and
brand equity simultaneously and
significantly. In contrast, for local brand,
consumer loyalty is formed as partial by
brand equity indicator only, it indicates
that relationship of forming loyalty by
product attributes variable in context local
brand is not significant and very
complicated. This study is relevant to
previous study about consumer loyalty in
relation with country-of-origin [2-4]
. real indicators that can increase
Furthermore, attribute products owned by
local brands do not influence consumer
loyalty, but the brand equity indicator
towards loyalty influences significantly.
This result indicates that consumer loyalty
in local brands is greater influenced by
brand equity not by product attributes
offered because product attributes offered
not better than international brand. This
shows that consumers are more
interested in the development of local
brand awareness to be able to create
loyalty, not emphasis on product features
(cues).
From a theoretical perspective,
this study confirms that the perception
of product attributes and brand equity is
influenced by country-of-origin (external
cues) [27, 28]. In addition, this study also
can improve our understanding of the
importance of evaluating a product from
consumers to making it loyal based on
country-of-origin. Likewise, for local
brand products, this study found that
brand equity plays an integral role in
determining consumer loyalty.
Therefore, for local brand managers, it
is better to emphasize brand
awareness rather than emphasize on
product features, this is based on the
fact that the role of brand equity in
which an image development activity is
considered more able to increase
customer loyalty. It is also based on the
fact that product attributes of local
products are often lost when compared
with international products, although
this is also based on what kind of
products are compared. In contrast,
based on the findings of this study
shows that product attributes of
local brand are not too significant
effect on the formation of loyalty and
consumer purchasing decisions.
Thus, by knowing what the
loyalty and consumer's confidence
for local brand, manager can apply
the right strategy for build customer
loyalty further, so that local brand
can compete with international
brand, in terms of consumer goods.
Although this study may confirm
some of the previous studies and may
provide new knowledge, the study still
has weaknesses. First, the study was
only addressed to the majority of
teenagers as respondents, so this study
cannot justify for the wider demographic
of respondents. Second, the emphasis
on country of origin in this study is less
distributed through questionnaires, so
to get a complete situation about the
relationship of internal and external
cues in relation to country-of-origin and
consumer loyalty, future study has to
recognize it.
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