The Impact of Country of Origin on Relationship Quality: Empirical Evidence from Automotive Industry

Abstract

This study examines the impact of country of origin on relationship quality in automotive sector. Four hypotheses were developed to test the relationships between country of origin and relationship quality. Relationship quality in this research is composed of three elements; brand trust, brand commitment, and brand satisfaction. Data were collected using survey questionnaire from 287 respondents of passenger car users in Northern region of Malaysia. To test the conceptual framework, Structural Equation Modelling (SEM) using AMOS 18 was employed as data analysis technique. In general, the SEM analysis revealed that country of origin has a significant positive influence on overall relationship quality. Moreover, the analysis indicated that country of origin has significant positive influence on brand trust, brand commitment, and brand satisfaction. Based on the findings of this study, it is suggested to the strategic policy makers in the automotive sector to emphasize on these three basic determinants of relationship quality; brand trust, brand commitment, and brand satisfaction to cope with intense competition. Particularly, this study would guide automotive manufacturers to benefits from these findings to enhance customer relationships through utilizing positive country of origin image. DOI: 10.5901/mjss.2015.v6n2p165