Abstract

The objective of this study was to investigate the effects of the dimensions of country of origin on product quality assessments, perceptions of product value, and purchase intentions. The samples were people in Bangkok and Metropolitan Area (BMA), who intended to purchase eco cars within the next six months. Survey research with structured questionnaire was a method used for data collection. Multiple regressions were applied to test the research hypotheses, and the sample size required 500 respondents. The findings revealed that country of corporate ownership (COC), country of manufacture (COM), country of parts (COP), and Country of Brand (COB) had the effects on product quality assessment of eco cars while product quality assessment also had an effect on purchase intention. Moreover, COP and COM had the effects on perception of product value of eco cars whereas the perception of value also had an effect on purchase intention of eco cars. In addition, COP and COM had the effects on purchase intention. Product quality assessment and perception of product value had the effects on purchase intention. Nevertheless, country of assembly (COA) and country of design (COD) did not have the effects on product quality assessment, perception of product value, and purchase intention of eco cars. The contributions are expected to the practice arena to help the automobile industry or car manufacturing companies, whose country of origin dimensions are foreign countries, in choosing their country of origin to be appropriate for their marketing and to create incentives for consumers to buy.

Highlights

  • 1.1 Background and Statement of the ProblemWorld fuel consumption indicated in the Annual Energy Outlook 2012 showed that there is a tendency of an increase in the world fuel consumption which is expected to be increased from 86,100,000 barrels/day in 2007 to 110,600,000 barrels/day in 2035

  • Hypothesis 1 was to investigate the effects of the dimensions of country of origin on product quality assessments, comprising hypotheses H1a to H1f as shown in the following: H1a: country of manufacture (COM) has an effect on product quality assessment of eco car; H1b: Country of Assembly (COA) has an effect on product quality assessment of eco car; H1c: Country of Parts (COP) has an effect on product quality assessment of eco car; H1d: Country of Design (COD) has an effect on product quality assessment of eco car; H1e: Country of Brand (COB) has an effect on product quality assessment of eco car; and H1f: country of corporation ownership (COC) has an effect on product quality assessment of eco car

  • Hypothesis 2 was conducted to investigate the effects of the dimensions of country of origin on perceptions of product value of eco car, comprising hypotheses H2a to H2f as follows: H2a: COM has an effect on perception of product value of eco car; H2b: COA has an effect on perception of product value of eco car; H2c: COP has an effect on perception of product value of eco car; H2d: COD has an effect on perception of product value of eco car; H2e: COB has an effect on perception of product value of eco car; and H2f: COC has an effect on perception of product value of eco car

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Summary

Introduction

1.1 Background and Statement of the ProblemWorld fuel consumption indicated in the Annual Energy Outlook 2012 showed that there is a tendency of an increase in the world fuel consumption which is expected to be increased from 86,100,000 barrels/day in 2007 to 110,600,000 barrels/day in 2035. There have been the fluctuations of crude oil price in the global market from 2010 to 2013 as 79.40, 94.86, 94.51 and 88.25 U.S dollars per barrel, respectively (U.S Energy Information Administration, 2012). The government has set the goal to decrease total percentage of liquid fuel oil consumption from 49% to 45% by 2020 (Ministry of Energy, 2011). This directly impacts transportation sector, which currently uses liquid fuel oil for 36% of total domestic liquid fuel oil consumption. Most feasible choice for mass population is to use energy efficiency cars like eco cars having major engines not exceeding 1300 cc or diesel engines not exceeding 1400 cc since the Thai cabinet has currently approved tax refund for the first-time car buyers who buy cars having engines not exceeding 1500 cc (Research Community, 2008)

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