The Effect of Product-Specific Country-of-Origin: The Evidence from Emerging Market
Danang Fajar Pamungkas, Imam Salehudin*

Department of Management, Faculty of Economics and Business, Kampus UI, Depok 16424, Indonesia
*imams[at]ui.ac.id

Abstract

While consuming a certain product, Information regarding to the origin country of the product is one of external ques that can influence consumer perception on the products quality. The Country-of-Origin studies becomes important in international marketing context, especially when numerous countries are affiliated in strategic alliances to produce a product, its also involves the images of those countries. This study is aimed to evaluate the effect of Product-Specific Industry image from Country of Brand (COB) and Country of Manufacturing (COM) Origin towards consumer perceived quality of a bi-national product.
This research uses cross-sectional survey to determine the COM effect towards consumers perceived quality on South Korean Sport Utility Vehicle Brand that manufactured in Indonesia, by involving 273 samples, which are then processed using the Structural Equation Modeling. The results indicate that the Car Industry Image from COM and Car Product Image from COB significantly influence consumers perceived quality. This research will give some managerial implication on international automobile marketer, in order to consider the car-specific country image when deciding the manufacturing location, or to involve the COM in the marketing communication process to domestic consumer.

Keywords: Country of Origin, International Marketing, Emerging market

Topic: Marketing Management