The Country of Origin and Brand Image Effect on Purchase Intention of Smartphone in Surabaya - Indonesia

Abstract

At present, borderless among countries makes international companies spread their business all over the world. Goods that produced in one country are being sold in other countries. This phenomenon forces global marketers to understand factors that influence consumers’ evaluation on a product. Consumer buying behavior on global brand mostly based on extrinsic information. Evaluation on a product is conducted by perception to brand (Brand Image) and country where the product is manufactured (Country of Origin). This study examined the effect of country of origin and brand image on consumers’ purchase intention of smartphone in Surabaya and employed 150 visitors of smartphone trade centre in Surabaya. Structural Equation Modeling (SEM) was applied to measure the relationships among constructs. The data analysis is performed by Analysis of Moment Structure (AMOS Graph version 16). The results of this study showed that country of origin have an influence on brand image and attitude. Brand image have an effect on attitude and purchase intention. Subjective norm have an influences on purchase intention. Otherwise, attitude does not have an effect on purchase intention. This study supports the idea that extrinsic information (country of origin and brand image) has an effect on attitude and purchase intention. DOI: 10.5901/mjss.2015.v6n5s5p64