Abstract
Most handphones in Indonesia and Malaysia are imported from other countries such as from America, Europe, China, and South Korea. The enhancement of global brands has reduced local brand preferences. This research aims to clarify the consumers’ perception towards brands of handphones in Indonesia and Malaysia by conducting comparative studies in both countries and examining the effects of product attributes and brand image on brand preference. Questionnaire surveys were conducted to 200 respondents from Indonesia & Malaysia. The data were analyzed by the descriptive analysis, Semantic Differential Scale Analysis, ANOVA test, and Structural Equation Modelling Partial Least Square (SEM-PLS). It has been clarified that there are differences in preferences between consumers in Indonesia and Malaysia in terms of product attributes. Thus, the results of this research give benefits to the market expansion and product development in both countries. Keywords: brand preference, consumers’ perception, country of origin, brand, structural equation modeling
Highlights
Imported handphones have dominated the Indonesian and Malaysian markets
Indonesian consumers are more concerned with design while Malaysian consumers are more concerned with performance quality
The conclusion that can be drawn from the results of this research, is a difference of perception between Indonesian consumers and Malaysian consumers
Summary
Imported handphones have dominated the Indonesian and Malaysian markets. There are various brands of handphones from different countries (such as America, China, Europe, and South Korea). Based on Top Brand Index (2017), it is reported that handphones from South Korea, America, and Europe are still priority in Indonesian market. Handphones from China dominate the Indonesian market and Malaysian market. The global is the one that has a name in the international market, such as handphones from America, South Korea, and Europe. An increase in China’s market share shows that Chinese handphones have increased. International Data Corporation (IDC) Asia Pacific (2017) noted the number of imported handphones increased by 35% in Malaysia
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