International Journal of Application or Innovation in Engineering & Management (IJAIEM)
Web Site: www.ijaiem.org Email: editor@ijaiem.org, editorijaiem@gmail.com
Volume 2, Issue 11, November 2013
ISSN 2319 - 4847
The influence of product involvement and
country of origin on purchase intention: A study
in Malaysia toward European brands
Sadra Tabassi 1, Pouyan Esmaeilzadeh 2 and Murali Sambasivan 3
1,2,3
Graduate school of management, universiti Putra Malaysia, 43400 UPM Serdang Selangor, Malaysia
Abstract
The aim of the current study is to examine the role of country-of-origin in consumers’ product evaluation as well as purchase
intention toward high- and low-involvement product (Car and confectionery) in a newly-industrializing nation. Data were
collected from 500 consumers in Malaysia via a survey using self-administered questionnaires. Data were analyzed based on
regression using SPSS. The main objective of this study is to explore the influence of country of origin (COO) relative to other
product attributes in consumers’ evaluation of domestic and foreign products. The Findings revealed that Malaysian consumers
preferred products from European brands in case of high-involvement product. However, in case of low-involvement product,
consumers evaluated their foreign-made products less favorably than homemade products. Consequently, COO influences
consumers’ preferences differently in the case of high- and low-involvement products.
Keywords: Purchase intention, Country of origin, high- and low-involvement products, European brands, Malaysia
1. Introduction
To attract new customers, organizations need some unique elements that make consumers convince and buy their good
such as gaining a successful product image. Therefore, studies on the effects of product image or country-of-origin have
become more significant and popular area of international business research for decades. Despite such interest, some
scholars have emphasized the product image of a country with focusing more on a country’s product attributes (Agarwal
& Sikri, 1996; Han, 1989; Han & Terpstra, 1988; Roth & Romeo, 1992). Meanwhile, others have coined the concept of
product-country image to combine the two points (Papadopoulos & Heslop, 1993; Pappu, Quester, & Cooksey, 2007;
Parameswaran & Pisharodi, 1994) or decomposing country-of-origin cues into country of design and country of assembly
(Chao, 1998; Insch & McBride, 2004).
Based on the literature, product image refers to the general perceptions that consumers have on a particular country’s
products (Parameswaran & Pisharodi, 1994), or the total beliefs consumers have regarding products of a given country
(Nagashima, 1970, 1977). People often have stereotypical views of specific attributes associated with the product image of
certain given countries. For example, while products made in Japan are considered to be durable, those made in Germany
are often associated with exactness or workmanship and etc.
Such information can remain in the consumer’s memory and is recognized as objective knowledge. Subjective knowledge
meanwhile refers to the degree of subjective knowledge that consumers have regarding particular products (Lee & Lee,
2009). Such country’s specific attributes can be triggered or initiated when consumers become aware of the country where
a product was made (Hamzaoui & Merunka, 2006). Chao (1993) also suggests that due to globalization and the rise in
strategic alliances, whereby products have been designed, engineered made or supplied from different countries,
researchers need to also consider such factors in their research designs, particularly as consumers become more familiar
with the quality of products associated with certain countries.
The impact of globalization is also driving multinational corporations to seek production in low cost countries and this
may or may not convey equal values in the mind of the consumer (Hui & Zhou, 2003). For example, along with the recent
manufacturing boom in China, its economy has continued to become more prosperous. Moreover, globalization has made
it possible for consumers in many countries to avail themselves of a vast array of products (Levitt, 1983; Lotz and Hu,
2001). Furthermore, this growing variety of products have improved standards of living combined with improved global
communication mean that target customers are open to a wider range of foreign brands than ever before. Hence,
marketers have demonstrated a growing interest in understanding the factors affecting consumer’s evaluations of foreign
products against domestic ones. Moreover, it should be highlighted that western companies’ domestic markets have
already reached maturity stage and are highly competitive due to a crowded marketplace where a group of companies
fight for a saturated demand.
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Volume 2, Issue 11, November 2013
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In light of the above discussion, this empirical study was designed to extend the global marketing literature by focusing
on consumers ’attitudes toward low-involvement Europeans food products like confectionery which is often bought with a
minimum of thought and effort because they are not of vital concern nor have any great effect on the consumer’s lifestyle
and also High-involvement Europeans products like car which is purchased only after careful contemplation as against
impulse purchasing, in a developing country setting (Malaysia). In addition, most research on country of origin
(thereafter referred to as COO) has concentrated on developed countries, which may limit the applicability of the
numerous studies’ findings to developing countries. The current research is expected to fill the current gap.
2. Country-of-origin, Product image and intention to purchase
Many authors have defined country-of-origin as the country where a firm makes, manufactures or assemblies its goods
(Al-Sulaiti & Baker, 1998; Ahmed et al., 2004; Ashill & Sinha, 2004). On the other hand, other authors have stated that
country-of-origin represents the stereotype that most consumers have of a particular country (Nagashima, 1970).
Consumers also tend to categorize product brands with countries; hence country-of-origin is also acknowledged as
country where the brand is located (Ashill & Sinha, 2004).
The significance of country-of-origin on consumer product perception has been documented extensively in past literature
(Bilkey & Nes, 1982; Papadopoulos & Heslop, 1993; Granzin & Olsen, 1998; Ahmed & d’Astous, 1999; Kaynak,
Kucukemiroglu, & Hyder, 2000). It is relatively common for consumers to assess product attributes like quality or
performance with reference to country-of-origin labels (Erickson, Johansson, & Chao, 1984; Hong, Robert, & Wyer,
1989). For example, many consumers perceive Japanese electronics to be of excellent quality as a testament to the
advanced technological ability of the Japanese as a whole (Hong, Robert, & Wyer, 1989). Such stereotyping influences
consumer product categorization as either superior or vice versa depending on their perception of the country in question.
In some cases, the country’s image also serves as a ‘halo effect’ where it impacts a consumer’s belief about a product and
therefore, its overall evaluation (Erickson, Johansson, & Chao, 1984).
Subsequently, it comes with no surprise that consumers tend to have higher purchase intention for products deemed to
come from countries with more positive images (Roth & Romeo, 1992). In these consumers, such positive images signal
better/higher quality in the products (Hong, Robert, & Wyer, 1989). Nevertheless, in some cases, the consumers’
perception of a country’s positive image in a product attribute had been shown to not spill over to other attributes for the
same product (Ahmed et al., 2004).
Research on the country-of-origin effect has generally measured and examined how product image (e.g., workmanship,
innovation and technological advancement) influences the perception of product quality (Bilkey & Nes, 1982; Johansson,
1989; Johansson, Douglas & Nonaka, 1985; Papadopoulos & Heslop, 1993). It has also been well recognized within this
literature, that product image of a country directly influences perceived product quality (Erickson et al., 1984; Eroglu &
Machleit, 1989; Ittersum, Candel, & Meulenberg, 2003; Wall & Heslop, 1986). Yaprak and Parameswaran’s (1986)
demonstrated that consumer purchase intention is directly influenced by specific product attributes, consumers’ general
perceptions of products from a source country and the perceptions of the source country, as well as its people.
3. COO and product evaluation
Preference for home products over foreign products has been consistently emphasized in a number of studies
(Papadopoulos et al., 1987; Papadopoulos and Heslop, 1993; Shimp and Sharma, 1987; Netemeyer et al., 1991; Sharma et
al., 1995). However, such studies have generally focused on European or US consumers. The studies have indicated that
local products are more favorably assessed even when there are no differences between the products and that locally made
products have the propensity to be selected by consumers over foreign products if they compare favorably on all attributes
(Bilkey and Nes, 1982; Han and Terpstra, 1988; Elliott and Cameron, 1994; Okechuku, 1994). However, it is also
possible that consumers prefer to choose domestic products rather foreign products when they are identical in all other
regards, because of ethnocentrism (Shimp and Sharma, 1987).
Consumer ethnocentrism might be another reason for home country purchase. Moral and/or economic justification can be
a acceptable reason for a consumer not to buy a foreign product even when it is recognized that the foreign one is superior
in quality to the local one (Shimp and Sharma, 1987; Acharya and Elliot, 2003). Causes of consumer ethnocentrism
include nationalism xenophobia, national or racial superiority (Adorno et al., 1950), feeling of immorality (Shimp and
Sharma, 1987), prejudice against foreign products (Herche, 1990; Sharma et al., 1995) or animosity deriving from war or
economic threat (Klein et al., 1998).
4. The influence of involvement on purchase decisions
Assael (1987) “has identified a link between high and low levels of involvement and customer purchase behavior.
Customers who purchase high-involvement products are generally required to conduct researches prior to their purchase
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Volume 2, Issue 11, November 2013
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in order to gain an understanding of the product”. While “a low-involvement product is under concern, the consumers
already have a good understanding of the product, and will therefore probably carry out the purchasing action with a
lower level of pre purchase consideration of the product and hence will pay less attention to COO effects. However,
Ahmed et al. (2004) have found that in Singapore, the COO effects on low-involvement products were similar to those
found in the case of high-involvement products in developed countries”. However, “because of the different levels of
likely product consideration and research that will be carried out in the case of products with different involvement levels,
it would seem logical to expect that the effects of country of origin of manufacturer (COOM ) will be different in the case
of both low- and high involvement products and that this effect may be more pronounced in the case of developing
countries where information availability may differ from that to be found in developed countries”. For that reason, this is
one of the features that this study was considered to discover. To do this, the study used the Marketing Link of Australia
and New Zealand (2005) meanings of low- and high involvement products, which are as follows:
Low-involvement products: “Products that are bought frequently with a minimum of thought and effort because they are
not of vital concern nor have any great impact on the consumer’s lifestyle”.
High-involvement products: “Products that are purchased only after very careful consideration as against impulse
purchasing, for example, high-capital value goods”. The following hypotheses can be proposed for further statistical test:
H1: There is a significant relationship between high involvement product and purchase intention to EU brands.
H2: There is a significant relationship between low involvement product and purchase intention to EU brands.
Based on the hypotheses of this study, we developed the conceptual framework as follows:
Figure 1: conceptual framework
5. Research methodology
This study aims to investigate the impact of country-of-origin on Malaysian consumer purchase intention towards a
European low involvement product and also high involvement i.e. confectionery and car. We adopted a multidimensional
measure of COO to accommodate the specific products used. The dimensions selected were taste, prestige, retail price,
level of familiarity with product, aroma and quality overall opinion for the confectionery profile, and, Variety,
Workmanship, Defects in merchandise, Attractiveness, Innovativeness, Known price, Durability ,Technology level, and
Overall satisfaction for the car profile. Additionally three questions then asked respondents to know how their familiarity
with the European countries. The aim was to control any relationship between familiarity and the respondents’ choices.
6. Instrument development
A two-part questionnaire was used to collect the data. In Part 1, a five-point semantic differential scale exploring
respondents’ perception of quality was used. In this part of the questionnaire, respondents were presented with a series of
structured purchase scenarios that required them to rate the quality of the products on a five-point numerical scale
ranging from 1 – Lowest preference to 5 – highest preference. In part 2, a profile of the respondents in terms of gender,
age, marital status, educational attainment, income, religion and occupation was obtained.
The total of 600 questionnaires were distributed among the potential respondents for this study of which 550 questioner
were received, after having the screening process completed, only 500 responses were found to be considered complete
and valid for data analysis process. Questioners were systematically distributed utilizing a simple random sampling
method from all walk of life across Malaysia at various shopping malls, educational institutions and pedestrians,
walkways. Statistical Package for Social Sciences (SPSS) version 19 was used and the data analyzed using regression test.
7. Analysis and results
In order to meet the objective of the study which is obtaining a better understanding on Malaysian consumer perception,
we examined the hypotheses provided in this study. The data analysis was conducted using both descriptive and
inferential statistics. In descriptive statistics section, we analyzed general characteristics of respondents to recognize the
nature of the sample. This helps researchers in examining the effects of variables on Malaysian consumer purchase.
Additionally, inferential statistics has been used to infer relevant information related to the population.
7.1 Demographic profile
The respondents demographic profile, such as, gender, age, marital status, religion, education level, occupation and
monthly income are included in this study. In this section the descriptive analysis and frequency distribution for each of
the demographic files are conducted. The collected data are analyzed based on their frequency and percentage.
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7.1.1 Gender
According to Table 1, the total of respondents participated in this survey is 500. Out of these 500 respondents 28.6% of
them were male while 71.4 were female. Therefore, the percentage of female respondents is more than males.
Table 1: Gender profile of the respondents
Frequency Percen
t
MALE
143
28.6
FEMALE
357
71.4
7.1.2. Age
According to Table 2, out of 500 respondents 75.4% fall in 20-29 years group category which is the largest age group in
this study. These findings indicate that 94.8% of the respondents are less than 40 years old.
Table 2: Age profile of the respondents
Frequency Percen
t
20 TO 29
377
75.4
30 TO 39
97
19.4
40 TO 49
25
5.0
ABOVE 50 1
.2
7.1.3 Monthly income
Table 3 shows the result of monthly income. In term of monthly house hold income, the study found that the largest
category answered by the respondents was the 1000 RM to 2999 RM income group. The finding indicates that 76.6% of
respondents earned less than 5000 RM monthly.
Table 3: respondents’ profile of the income
Frequency Percen
t
BELOW 1000
102
20.4
1000 TO 2999
190
38.0
3000 TO 5000
91
18.2
5000 TO 7000
59
11.8
7000 TO 9000
29
5.8
9000 TO
12
2.4
11000
ABOVE 11000 17
3.4
7.1.4 Occupation
Table 4 shows the distribution of respondents’ based on their occupation. The majority of respondents fall into student
category which contains 43.4% of the respondents. The second category is the executive group which constitutes 14.8% of
respondents.
Table 4: respondents’ profile of the Occupation
Frequency Percen
t
MANAGEMENT
45
9.0
EXECUTIVE
74
14.8
PROFFESIONAL
28
5.6
GOVERNMENT SERVANT PROF
50
10.0
GOVERNMENT SERVANT
60
12.0
STAFF
SCHOOL TEACHER
6
1.2
SELF EMPLOYED
6
1.2
CLERICAL
2
.4
STUDENT
217
43.4
HOUSE WIFE
1
.2
OTHERS
11
2.2
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7.1.5 Marital status
The Table 5 shows the majority of respondents were single (70.6%) and this distribution is fully match to age distribution
which the majority fall into 20-29 years group.
Table 5: respondents’ profile of the Marital Status
Frequency
SINGLE
MARRIED
DIVORCED
353
139
8
Percen
t
70.6
27.8
1.6
7.1.6 Education
For the education level, the majority of respondents fall into bachelor-holder group (85.5%). The majority of the
respondent had completed the university degree as their highest education level. This result is match with age distribution
of the respondents.
Table 6: respondents’ profile of the Education
Frequency Percen
t
MCE/SPM/SPV
3
.6
M
HSC/STP/STPM
23
4.6
DIPLOMA
45
9.0
BACHELOR
429
85.8
7.1.7 Religion
According to the table 7 the majority of respondents fell into Muslim category (51.4%) which is followed by Buddhism
(29.8%).
Table 7: respondents’ profile of the Religion
Frequency Percen
t
ISLAM
257
51.4
CHRISTIANITY 47
9.4
BUDDHISM
149
29.8
HINDUISM
36
7.2
OTHERS
11
2.2
7.2 Mean standard deviation and normality of each variable
Table 8 shows the mean, standard deviation and Skewness for variables. To check the normality we calculated skewness
of the data which should fall inside ±2.58 range of skewness to be normal. The values for skewness show that the data
came from normal distribution.
Table 8: Descriptive Statistics
Std.
Skewness
Mean
Deviation
MEANHINV
.55250
-.284
3.9081
MEANLINV
.65111
-.405
3.8320
7.3 Correlation between variables of the study
Correlation analysis provides the strength and direction of the linear relationship between two variables and it also states
the relationship between two variables. The Pearson correlation is used to test the correlation product image and purchase
intention.
Table 9: correlation
MEANIN
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MEANHINV
MEANLINV
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[MEANINT] Pearson Correlation
Sig. (2-tailed)
[MEANHINV] Pearson
Correlation
Sig. (2-tailed)
[MEANLINV] Pearson
Correlation
Sig. (2-tailed)
T
1
.001
.975
.138**
.002
.001
.975
1
.138**
.002
.533**
.000
.533**
.000
1
7.4 Reliability
In this study we used Cronbach’s alpha. All the alphas are above 0.7 and the table 4.9 shows that the internal consistency
of each variable is significant.
Table 10: Reliability
Cronbach’s
alpha
.724
.943
Variable
Purchase intention
High involvement
product
Low involvement product
.946
No of items
6
19
10
7.5 The relationship between product image (High involvement) and purchase intention:
In this section, we have run a regression to test the relationship between product image (high involvement) and purchase
intention. This hypothesis claims that product image (high involvement) is positively related to purchase intention. This
hypothesis tries to express how purchase intention is affected by product image (high involvement). We have run the
regression to test this hypothesis. According to R-Square, 0.0% of the variance in purchase intention can be defined and
predicted by product image (high involvement). According to ANOVA table, the P- value is more than 0.05. It shows the
regression is not fit to the data.
Table 11: ANOVAb
Model
Mean
F
Sig.
Square
Regression
.001
.001
.975a
According to coefficient table product image (high involvement) is not significant to explain and predict purchase
intention (P value =0.975>0.05). The coefficient is 0.002 which states a positive relationship between purchase intention
and product image (high involvement) but this relationship is not significant. According to multicollinearity statistics
(VIF=1), since the value of tolerance is above the 0.1 cut -off threshold and below ten, there is no sign to express
multicollinearity between independent variables in this study. Therefore, H8a is not supported in this study.
Table 12: Coefficients
B
t
MEANLINV
.002
.031
Sig.
.975
7.6 The relationship between product image (Low involvement) and purchase intention:
The following hypothesis indicates the direct relationship between purchase intention and product image (low
involvement). This hypothesis climes that purchase intention is positively related to product image (low involvement).
This hypothesis tries to express how purchase intention is affected by product image (low involvement). We have run the
regression to test this hypothesis as follow: According to RSquare, 1.9% of the variance in purchase intention can be
defined and predicted by product image (low involvement). According to ANOVA table, the P- value is less than 0.05. It
shows the regression is fit to the data.
Table 13: ANOVAb
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Model
Regression
Mean
Square
5.995
F
Sig.
9.622
.002a
Table 14: Coefficients
B
t
Sig.
MEANLINV
.168
3.102
.002
According to coefficient table product image (low involvement) is significant to explain and predict purchase intention (P
value =0.002<0.05). The coefficient is 0.168 which states a positive relationship between purchase intention and product
image (low involvement) and this relationship is significant. The regression equation can be written as follow:
Y (purchase intention) =2.872 + 0.168 (low involvement product) According to collinearity statistics (VIF=1), since the
value of tolerance is above the 0.1 cut -off threshold and below ten, there is no sign to express multicollinearity between
independent variables in this study. This finding supports H8b.
8. Discussion
The research aims to study the effect of country-of-origin cues on Malaysians’ purchasing behavior and also whether the
COO effects would be the same for a high involvement and a low involvement product in the Malaysian context. Previous
literature showed that products from developed countries are usually perceived to be of better quality than those from
developing countries (Kaynak, Kucukemiroglu, & Hyder, 2000; Ahmed et al., 2004). Other studies like De Run, Ernest
Cyril; Chan, Angelina Wan Sian; Khalique, Mohamed (2012) have found that Malaysians generally are in favor of
products from a more developed country as opposed to merchandises made locally and those are from less developed
nations. This finding of previous research related to the influence of country-of-origin labels in high involvement
products (Kaynak, Kucukemiroglu, & Hyder, 2000; Sohail, 2004). However, because of the different levels of likely
product consideration and research that will be carried out in the case of products with different involvement levels, it
would seem logical to expect that the effects of country of origin of manufacturer (COOM ) will be different in the case of
both low- and high involvement products and that this effect may be more pronounced in the case of developing countries
where information availability may differ from that to be found in developed countries. For this reason, this research
tested the responses of Malaysians towards high- and low-involvement product (Car and confectionery) from Europian
countries against the domestic Products.
Findings of this study have shown that Malaysians tend to favor the local products more when they compare to foreign
goods in case of the low-involvement products. On the other hand, for the high-involvement products, the Malaysian
consumers appraised their home country products less favorably than foreign-made products.
9. Conclusions and implications for marketing managers
This study is of interest to companies and global marketing managers doing business with Malaysia and also for COO
literature. The main focus of the study undertaken is to understand the extent of country-of-origin cues on Malaysians’
purchase intention of a low involvement as well as high involvement products. The most important results of this study
show that COO effects influence consumers’ preferences differently in the case of high- and low-involvement products.
Future research should incorporate other product cues such as brand, product types and price together with country-oforigin cues to investigate the cumulative effect on consumer attitude and purchase intention of a product. Watson and
Wright (2000) stated that conducting country-of-origin studies in different countries and cultures will give different
outcomes. From an international marketing manager’s outlook, understanding a high degree of preference for foreign
made or home made products is of importance. Therefore, the study can help marketing managers to correctly resource
their expenditure strategies. To release what drives customers to buy and their propensity to purchase.
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