The Effect of Consumer Ethnocentrism on Purchase Intention of Indonesian Local Fashion Brands

Abstract

AbstractThere is a decline and lack of consumer interest in buying local Indonesian fashion products; however, many potential fashion brands are emerging and growing in Indonesia. A strategy is needed to increase local brand awareness among consumers in Indonesia, especially consumer ethnocentrism. It is known that the more ethnocentric a group of consumers is, the more important it is to them where the product comes from, and the impact is the more active they are in seeking information about the product. Ethnocentric consumers also create a value that can influence others; the value is considered important to explain that their products are much better than other people’s products. This study is a quantitative descriptive study that aims to determine the relationship between research variables, namely consumer ethnocentricity, brand value, and intention to buy local products. This study used a sampling technique that is purposive sampling. The data analysis technique used was the PLS-SEM test. The empirical results from PLS-SEM show that the effect of consumer ethnocentrism on brand value proved to have a positive and significant effect. Second, the effect of consumer ethnocentrism on purchase intention proved to have a positive and significant effect. Third, the effect of brand value on purchase intention proved to have a positive and significant effect.