Open Access Open Access  Restricted Access Subscription or Fee Access
Total views : 545

Country-of-Origin Effect on Domestic Product Evaluation and Purchase Intention Relationship in India

Affiliations

  • Associate Professor, Department of Commerce, Hansraj College, University of Delhi, Delhi - 110 007, India

Abstract


Globalization has paved the way to diminishing boundaries and increasing trade between countries. Consumers today have vast choices of products originating in both domestic boundaries as well as foreign countries. Yet, all foreign products are not viewed with the same pride and esteem. Products originating from different countries have different perceptions in the minds of consumers. The COO research has gained further importance in the current COVID-19 pandemic scenario, given the Government of India’s wide-scale initiatives towards Atmanirbhar Bharat to make India more self-reliant, and the people of India are widely accepting such views. Few researchers have studied the COO effect on purchase preference for domestic vis-à-vis foreign products in India. The present study, therefore, investigated the country-of-origin effect on the relationship between the evaluation of domestic products and their purchase intention in the Indian context. The COO effect was investigated for the home country as well as a foreign country, that is, China. Understanding the country-of-origin effect of imported products vis-à-vis domestic products helps marketers plan their marketing strategies at both domestic and international levels.

Keywords

Country-of-Origin Effect, Domestic Product, Purchase Intention, India, China, Business Strategy.

JEL Classification Codes : F2, M2, M3, O5

Paper Submission Date : July 31, 2022 ; Paper sent back for Revision : December 4, 2022 ; Paper Acceptance Date : December 20, 2022 ; Paper Published Online : January 15, 2023


Full Text:

 |  (PDF views: 1)

References


  • Ahmed, S. A., & d'Astous, A. (2004). Perceptions of countries as producers of consumer goods: A T-shirt study in China. Journal of Fashion Marketing and Management, 8(2), 187-200. https://doi.org/10.1108/13612020410537889
  • Balabanis, G., & Diamantopoulos, A. (2004). Domestic country bias, country-of-origin effects, and consumer ethnocentrism: A multidimensional unfolding approach. Journal of the Academy of Marketing Science, 32, 80. https://doi.org/10.1177/0092070303257644
  • Batra, R., Ramaswamy, V., Alden, D. L., Steenkamp, J.-B., & Ramachander, S. (2000). Effects of brand local and nonlocal origin on consumer attitudes in developing countries. Journal of Consumer Psychology, 9(2), 83-95. https://psycnet.apa.org/doi/10.1207/S15327663JCP0902_3
  • Bawa, A. (2004). Consumer ethnocentrism: CETSCALE validation and measurement of extent. Vikalpa, 29(3), 43-58. https://doi.org/10.1177/0256090920040304
  • Bilkey, W. J., & Nes, E. (1982). Country-of-origin effects on product evaluations. Journal of International Business Studies, 13, 89-100. https://doi.org/10.1057/palgrave.jibs.8490539
  • Dmitrovic, T., & Vida, I. (2010). Consumer behaviour induced by product nationality: The evolution of the field and its theoretical antecedents. Transformations in Business & Economics, 9(1(19)), 145-165. http://www.transformations.knf.vu.lt/19/cons.pdf
  • Fetscherin, M., & Toncar, M. (2010). The effects of the country of brand and the country of manufacturing of automobiles: An experimental study of consumers' brand personality perceptions. International Marketing Review, 27(2), 164-178. https://doi.org/10.1108/02651331021037494
  • Fornell, C., & Larcker, D. F. (1981). Structural equation models with unobservable variables and measurement error: Algebra and Statistics. Journal of Marketing Research, 18(3), 382-388. https://doi.org/10.1177/002224378101800313
  • Gupta, M. (2021). "Atmanirbhar Bharat," "Dual Circulation": Shared internal woes post COVID-19 open not dissimilar economic paths for India and China. Prabandhan: Indian Journal of Management, 14(2), 26-39. https://doi.org/10.17010/pijom/2021/v14i2/157691
  • Hair, J. F., Celsi, M., Ortinau, D. J., & Bush, R. P. (2010). Essentials of marketing research (Vol. 2). McGraw-Hill/Irwin.
  • Haque, A., Anwar, N., & Sarwar, A. (2015). The effect of country of origin image, ethnocentrism, and religiosity on purchase intentions: An empirical investigation on Bangladeshi consumers. Indian Journal of Marketing, 45(10), 23-35. https://doi.org/10.17010/ijom/2015/v45/i10/79796
  • India Brand Equity Foundation. (2020). About Indian economy growth rate and statistics. https://www.ibef.org/economy/indian-economy-overview
  • International Monetary Fund. (2019). Report for selected country groups and subjects (PPP valuation of country GDP). https://www.imf.org/en/Publications/WEO
  • Jain, S. K., & Jain, R. (2010). Consumer ethnocentrism, its antecedents and consequences to consumer attitudes towards domestic and foreign made products: A theoretical framework. Business Analyst, 31(1), 23-46.
  • Joji Alex, N., & Thomas, J. (2014). Brand credibility and purchase intention among users of shopping and convenience goods: The moderating role of brand involvement. Indian Journal of Marketing, 44(4), 17-24. https://doi.org/10.17010/ijom/2014/v44/i4/80386
  • Kaur, J., & Kaur, P. (2014). Understanding the interrelationship between country of origin, ethnocentrism, and purchase intentions. Prabandhan: Indian Journal of Management, 7(6), 37-45. https://doi.org/10.17010/pijom/2014/v7i6/59326
  • Kim, C. K., & Chung, J. Y. (1997). Brand popularity, country image and market share: An empirical study. Journal of International Business Studies, 28, 361-386. https://doi.org/10.1057/palgrave.jibs.8490105
  • Kinra, N. (2006). The effect of country-of-origin on foreign brand names in the Indian market. Marketing Intelligence & Planning, 24(1), 15-30. https://doi.org/10.1108/02634500610641534
  • Klein, J. G., Ettenson, R., & Morris, M. D. (1998). The animosity model of foreign product purchase: An empirical test in the People's Republic of China. Journal of Marketing, 62(1), 89-100. https://doi.org/10.1177/002224299806200108
  • Krishnan, A. (2021, January 15). India's trade with China falls in 2020, deficit at five-year low. The Hindu. https://www.thehindu.com/business/Economy/indias-trade-with-china-falls-in-2020-deficit-at-five-year-low/article33581648.ece
  • Liefeld, J. P. (2004). Consumer knowledge and use of country?of?origin information at the point of purchase. Journal of Consumer Behaviour: An International Research Review, 4(2), 85-87. https://doi.org/10.1002/cb.161
  • Nunnally, J. C. (1978). Psychometric theory (2nd ed.). McGraw-Hill
  • Olsen, J. E., Biswas, A., & Granzin K. L. (1993). Influencing consumers' selection of domestic versus imported products: Implications for marketing based on a model of helping behavior. Journal of the Academy of Marketing Science, 21, 307. https://doi.org/10.1007/BF02894523
  • Papadopoulos, N., & Heslop, L. A. (1993). Product-country images: Impact and role in international marketing (1st ed.). Routledge. https://doi.org/10.4324/9781315863931
  • Parameswaran, R., & Pisharodi, R. M. (1994). Facets of country of origin image: An empirical assessment. Journal of Advertising, 23(1), 43-56. https://doi.org/10.1080/00913367.1994.10673430
  • Peterson, R. A., & Jolibert, A. J. (1995). A meta-analysis of country-of-origin effects. Journal of International Business Studies, 26, 883-900. https://doi.org/10.1057/palgrave.jibs.8490824
  • Samiee, S. (1994). Customer evaluation of products in a global market. Journal of International Business Studies, 25, 579-604. https://doi.org/10.1057/palgrave.jibs.8490213
  • Schooler, R. (1971). Bias phenomenon attendant to the marketing of foreign goods in the U.S. Journal of International Business Studies, 2, 71-80. https://doi.org/10.1057/palgrave.jibs.8490732
  • Thomas, T., Singh, N., & Ambady, K. G. (2020). Effect of ethnocentrism and attitude towards foreign brands in purchase decision. Vision, 24(3), 320-329. https://doi.org/10.1177/0972262919867509
  • Verlegh, P. W., & Steenkamp, J-B. (1999). A review and meta-analysis of country-of-origin research. Journal of Economic Psychological, 20(5), 521-546. https://doi.org/10.1016/S0167-4870(99)00023-9
  • Vernekar, S. S., & Wadhwa, P. (2009). Marketing India as a brand (Brand India, an idea whose time has come). Indian Journal of Marketing, 39(6), 30-39. https://indianjournalofmarketing.com/index.php/ijom/article/view/36992
  • Wang, C-K., & Lamb, C. W. (1983). The impact of selected environmental forces upon consumers' willingness to buy foreign products. Journal of the Academy of Marketing Science, 11, 71-84. https://doi.org/10.1007/BF02721862
  • Yassin, A., & Baharun, R. (2010). Yemeni consumers' perception and attitude towards Asian made products. Indian Journal of Marketing, 40(4), 55-65. https://indianjournalofmarketing.com/index.php/ijom/article/view/37223
  • Yeong, N. C., Mohamad, O., Ramayah, T., & Omar, A. (2007). Purchase preference of selected Malaysian motorcycle buyers: The discriminating role of perception of country of origin of brand and ethnocentrism. Asian Academy of Management Journal, 12(1), 1-22. http://web.usm.my/aamj/12.1.2007/aamj%2012-1-1.pdf

Refbacks

  • There are currently no refbacks.