The Effect of the Country of Origin on Chinese Smartphone Purchase

Intention

Rika Yolanda and Anjelina

Managerial Accounting Department, Politeknik Negeri Batam, Ahmad Yani Street, Batam, Indonesia

Keywords: Country Image, Product Perceived Quality, Brand Familiarity, Purchase Intention.

Abstract: This research aims to examine several factors that is impacted towards smartphone purchase intention. A

survey through questionnaire with 200 accounting students has been conducted in this research. Each

statement measured by a questionnaire where shared with Google docs. Total of samples in this research is

about 200 respondents where that is students with major accounting on five colleges in Batam city. Result

shows that country image has positive effect towards purchase intention, product perceived quality has

positive effect towards purchase intention, and brand familiarity has positive effect towards purchase

intention. This research is limited only by accounting students, the writer hopes that similar studies further

will expand the research sample so the research can be generalized.

1 INTRODUCTION

Rapid increasingly of technology development is

difficult to avoid. Nowadays society is increasingly

consumptive, so companies compete to improve the

image, quality and superiority of their products to

attract consumer buying interest. (Amanah, 2011).

Consumer interest on shopping comes from a

perception. This perception is then used as

consideration to make a decision for shopping.

Besides, another main factor need to be considered

such as COO.

COO is the country of origin where a product is

produced and is often hinted at by the words

"artificial product" or "produced in" (Listiana, 2012).

According to Listiana & Elida (2014), not all products

that say "artificial products" refer to the country of

origin, because it could be a product labeled "products

made in Indonesia" but in reality they are only

assembled or produced in Indonesia, while the

country of origin of the product is China. The

involvement of the country of origin in a product can

be a positive or negative perception by consumers

(Fitriyah & Iriani, 2014). COO also contains aspects

image of the country of origin of the manufacture of

its products (country image), product quality

(product quality), and the level of product popularity

(brand familiarity).

the development of the cell phone has been turned

into a smartphone (smart phone) and countries that

produce smartphones improve brand image, quality

and excellence to compete in the world of technology,

one of which is China. Smartphones from China are

already familiar among the people, but they always

get negative perceptions because they are rated as

having low quality (Purwitasari, Yulianto, & Wilopo,

2018). Currently China's smartphone products are

popular among the people of Indonesia, but the

negative views of consumers in Indonesia are still

inherent in their perception

. This perception can

influence consumer buying interest.

Hananto (2015) in his research found that brand

image has a partial influence on iphone purchase

intentions, also brand image has more dominant

influence on purchasing interest than COO. Another

study by Gifani & Syahputra (2017) shows that the

image of the Oppo smartphone brand which is a

product from China is included in the good category

and has a significant effect on purchasing decisions.

Annisa (2017) conducted a study on Samsung

smartphone products stating that COO and brand

image significantly influence buying interest.

According toTati, Suharyono, & Yulianto (2015)

also conducted research on Samsung smartphone

products and noted that COO has a negative and

significant influence on buying interest.

Yolanda, R. and Anjelina, .

The Effect of the Country of Origin on Chinese Smartphone Purchase Intention.

DOI: 10.5220/0010355503090316

In Proceedings of the 2nd International Conference on Applied Economics and Social Science (ICAESS 2020) - Shaping a Better Future Through Sustainable Technology, pages 309-316

ISBN: 978-989-758-517-3

309

He also In the 1990s, mobile phones were

communication devices that were only used for

communication via telephone and SMS. Along with

mentioned COO does not have a significant direct

effect on purchasing decisions. Whereas the global

brand image has a positive influence on buying

interest and purchasing decisions. Sari & Rahmawaty

(2016) conducted research on Xiaomi smartphone

products yesng products from China state that brand

image, features and price perception simultaneously

influence purchasing decisions. Research by Tulipa

& Muljani (2015) shows that COO influences brand

image and attitude. Brand image has an influence on

attitudes and buying interest. Other research by

Murtaza (2016) shows that COO in terms of brand

image and technological innovation has a positive

influence on the buying habits of Pakistani consumers

when buying a mobile phone. The results of previous

studies are also supported by research conducted by

Kalicharan (2014) showing that COO influences

consumer perceptions on product quality and

purchase interest. Research by Manorek (2016) who

conducted research on Samsung smartphone products

states that there is a significant influence on brand

image, perceived price, and advertising on consumer

purchasing power.

Several studies that have been done previously

still show inconsistent results on the effect of COOs

on Chinese smartphone purchasing power. The

phenomenon in Indonesia shows that there are still

many negative perceptions about Chinese

smartphones, even though Chinese smartphones are

popular among Indonesian people, this is evidenced

by the position of smartphones oppo and xiaomi who

are second and third in the top brand for teens index

2019 IT category in the top brand award 2019

This research is a replication of a previous study by

MY & Rashid (2016) conducted in Malaysia by

taking a random sample in Klang Valley, while this

research was conducted on accounting majors at five

tertiary institutions in Batam. Researchers also

adapted different questionnaires in measuring

variables from previous studies because the

questionnaires were adapted using a more updated

year. The difference between this research and similar

research in Indonesia is the COO measurement,

similar research conducted in Indonesia also

specializes in brands on Chinese smartphones, while

this study does not specialize in smartphone brands

or in general.

2 THEORY FRAMEWORK AND

DEVELOPMENT OF

HYPOTHESES

2.1 Theory of Planned Behavior (TPB)

TPB or known as the theory of planned behavior is a

conceptual thinking framework that aims to explain

the determinants of certain behaviors (Ajzen,

1991). The theory of planned behavior is also an

extension of the theory of reasoned action (TRA).

The TRA states that a person's intention for behavior

is formed by two main elements, namely attitude

toward the behavior and subjective norms (Fishbein

and Ajzen, 1975).

2.2 Purchase Intention

According to Ferdinand (2002) there are several

indicators that influence buying interest, namely

Transactional Interest, a person's tendency to buy

back the same product.

2.3 Country of Origin

According to Nagashima (1970) COO is a

description, reputation, stereotypes of consumers and

other business people towards an item that is

associated with a particular country. COO is an

important element in evaluating a product before

making a purchase.

2.4 The Effect of Country Image on

Purchase Intention

Vijaranakorn & Shannon (2017) states that the

country image is an extrinsic element that influences

the evaluation of consumers on a product. The theory

of planned behavior states that the attitude toward the

behavior variable (attitude toward behavior), that

attitude toward behavior is determined by individual

judgment, personal assessment of the person

concerned, related knowledge, beliefs about a

behavior, good or bad, and its benefits. In the country

image itself, when a consumer has a positive

perception, it is considered that it can improve

consumer evaluation, thereby encouraging consumer

behavior to buy products. Conversely, country image

has a negative perception in the eyes of consumers

tends to reduce behavior in terms of purchasing.

Country image also plays an important role in

influencing consumers' decision to buy. From the

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description that has been explained, the hypothesis

proposed in this study is:

H1: Country Image has a positive effect on Purchase

Intention.

2.5 The Effect of Product Perceived

Quality on Purchase Intention

Product perceived quality or perception of product

quality is an assessment of a product after it is used

by consumers. Each consumer has several

perceptions about the advantages and disadvantages

of the product, because the advantages and

disadvantages of the product help consumers in

ensuring product reliability, durability and

sustainability of consumption (Saleem et al., 2015)

Research conducted by Saleem et al., (2015) also

said that the perception of the quality of a product

directly influences consumer purchase interest, if the

perception of quality is high then the purchase

intention is high. From the description that has been

explained, the hypotheses proposed in this study are:

H2: Product Perceived Quality has a positive effect

on Purchase Intention.

2.6 The Influence of Brand

Familiarity on Purchase Intention

Laroche, Kim, & Zhou (1996) stated that brand

familiarity positively influences the intention to buy

a product with a certain brand through a high level of

trust in the brand. As mentioned by the theory of

planned behavior on the element of subjective norms

that someone's perception or view of beliefs and

beliefs can affect buying interest. The high level of

trust by consumers in a product can be said that

consumers really know and have sufficient

knowledge about the brand so that it can be a special

attraction for consumers. When a product is believed

to have a brand that is well known by consumers and

is considered positive in the eyes of consumers, it can

foster consumer interest in the product's purchasing

power.Based on the description that has been

explained, the hypotheses proposed in this study are:

H3: Brand Familiarity has a positive effect on

Purchase Intention.

Based on the explanation of the hypothesis

development above, the research model is as follows:

Figure 1. Research Model

(Source: Self-processed)

3 RESEARCH METHODS

The population in this study were students majoring

in accounting at five tertiary institutions in Batam.

This study uses quantitative methods, because

researchers process primary data obtained from

questionnaires to test the effect of independent and

dependent variables. The importance of conducting

research using quantitative methods to conduct

hypothesis testing using research designs. The

purpose of hypothesis testing is to obtain

comprehensive and in-depth data about the effect of

country of origin on purchase intention.

3.1 Definition of Variable Operations

Purchase Intention

The first dependent variable is purchase intention.

Purchase intention is part of making decisions in

learning the reasons for buying a particular product

by consumers (Shah, et al., 2012). According to

Morinez et. al (2007) states that purchase intention is

a situation where consumers decide to buy certain

products with certain conditions. The measurement

of purchase intention variables is measured by a

questionnaire adapted from Shabrin, Khandaker,

Kashem, Hie, and Susila (2017) research using seven

items of statements in which there are indicators of

transactional interest, referential interest, preferential

interest, and explorative interest.

3.2 Independent Variable

Country Image

The independent variable is country image. Country

image is a number of consumer beliefs, ideas and

responses about a particular country (Kotler, Rein, &

Haider, 1993). Country image or country of origin

image is considered to influence consumer

The Effect of the Country of Origin on Chinese Smartphone Purchase Intention

311

purchasing behavior on a product, because by

knowing the image of the country of origin the

consumer tends to make the decision to purchase a

product. Measurement of country image variables

was measured using a questionnaire adapted from

research by Hanzee & Khosrozadeh (2011) by using

eight statement items.

Product Perceived Quality

The second dependent variable is product perceived

quality. Product perceived quality is defined as a

general consumer perception and is an invisible

feeling about a product (Mirabi, Akbariyeh, &

Tahmasebifard, 2015). Product quality is the key to

evaluating before consumers make a purchase. When

a product has better quality, consumers tend to buy it.

The measurement of product perceived quality is

measured using a questionnaire adapted from Wasil's

research (2017) using five statement items.

Brand Familiarity

The third dependent variable is brand familiarity.

Brand familiarity is defined as the amount that is

directly or indirectly related to the brand that has

been obtained from consumers (Park & Stoel, 2005).

Brand familiarity or brand popularity is an important

part of a product, consumers may doubt the quality

or value of an unknown or familiar brand around

them due to lack of information about the product.

The popularity of a product among consumers can be

a special attraction for each consumer. The

measurement of brand familiarity variables is

measured using a questionnaire adapted from Lin's

research (2013)by using three statement items.

3.3 Data Types and Sources

The type of data in this study is ordinal data. The

data source used in this study is primary data. Primary

data is data obtained directly from respondents using

a questionnaire distributed to students who use

smartphones in five universities in Batam.

3.4 Location and Research Object

This research was conducted in the city of Batam. The

object of this research is students majoring in

accounting at five tertiary institutions in Batam. The

reason the writer chose the respondents was because,

students are active users of smartphones with a

consumptive lifestyle and always follow the latest

trends.

3.5 Number of Sample Determination

Techniques

The technique of determining the number of samples

used in this study is to use the Roscoe (1975)

technique. The population in this study were five

tertiary institutions in Batam, with an error tolerance

limit of 5%. Based on the description that has been

explained, then from the existing population,

obtained the size of the sample size of 200

respondents of research samples.

3.6 Sampling Withdrawal Technique

The technique used for sampling in this study uses

non-probability sampling techniques in the form of

quota sampling with the following division:

1. Batam State Polytechnic: 80 respondents.

2. Batam International University: 30 respondents.

3. Batam University: 30 respondents.

4. Riau Islands University: 30 respondents.

5. STIE Ibnu Sina: 30 respondents.

The reason the author uses a sampling technique

in the form of a quota sampling is because the author

determines the distribution of the number of

respondents based on the needs of the writer.

3.7 Data Collection Technique

Data collection techniques in this study used survey

data collection techniques with a questionnaire.

Questionnaires are distributed online through google

docs.

3.8 Data Processing Techniques

The steps taken to process data include: (1)

determining the dependent and independent variables

to be included in the research model; (2) editing,

namely the process of checking and adjusting the data

obtained; (3) scoring, i.e. giving weighting numbers

to the perception answers in the questionnaire; and (4)

tabulating, which presents data that has been obtained

into a table in accordance with the excel csv format.

to be able to do testing.

3.9 Data Analysis Techniques

This research data analysis technique uses statistical

applications in the form of SPSS 26 version. The

analytical method used is descriptive statistical

method, validity test, reliability test and classic

assumption test which consists of normality test,

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heteroscedasticity test and multicollinearity test.

Hypothesis testing using multiple linear regression

analysis, and see how the coefficient of determination

between variables.

4 RESULTS AND DISCUSSION

4.1 The Results of Data Processing

Collected

The data used in this study are primary data

obtained through distributing questionnaires to

students majoring in accounting at five universities in

the city of Batam. Questionnaires are created and

distributed using online questionnaires through the

Google form. A total of 200 questionnaire answers

were received by researchers. Distribution and

collection of questionnaires took 16 days. The

distribution of questionnaires began on November 25,

2019 and was successfully collected according to the

target on December 10, 2019. The following is the

percentage of respondents' response rate (response

rate) for the research questionnaire.

Table 1 Return Rate of the Questionnaire

Source: Primary data are processed by themselves

Based on Table 4.1 it is known that the

questionnaire received 200 questionnaire answers

and the percentage of data that could be processed

was 100%. Respondents who have filled out the

questionnaire are then grouped by gender, age,

department, level of education and college, income

range and brand of smartphone used. This

identification is carried out to determine the general

characteristics of the research respondents.

4.2 Descriptive Statistics

Descriptive statistical analysis can provide an

overview of the data seen from the mean, maximum,

minimum, and standard deviation based on the

processed data questionnaire. It is known that the

amount of data on each variable is 200 respondents

from a sample of students at five universities in the

city of Batam.

The dependent variable is purchase intention.

The purchase intention variable has a mean value of

24.7 and a standard deviation of 3.424. These results

state that the mean value is greater than the standard

deviation so it can be concluded that the assessment

of purchase intention has a high variation of

responses. The minimum purchase intention value is

8 and the maximum value is 32.

The first independent variable is a country image.

The country image variable has a mean value of

22.87 and a standard deviation of 3.052. These results

state that the mean value is greater than the standard

deviation so it can be concluded that the assessment

of the country image has a high variation of

responses. The minimum country image value is 14

and the maximum value is 32. The second

independent variable is product perceived quality.

The product perceived quality variable has a mean

value of 14.34 and a standard deviation of 2.139.

These results state that the mean value is greater than

the standard deviation so it can be concluded that the

assessment of the product perceived quality has a

high variation of responses. The minimum value of

product perceived quality is 7 and the maximum

value is 20. The third independent variable is brand

familiarity. The brand familiarity variable has a mean

value of 9.41 and a standard deviation of 1.663. These

results state that the mean value is greater than the

standard deviation so it can be concluded that the

assessment of brand familiarity has a high variation

of responses. The minimum value of brand familiarity

is 5 and the maximum value is 12. Summary of

descriptive statistics can be seen in the following

table 4.2.

Table 2: Descriptive Statistics Test

Source: Primary data are processed by themselves

4.3 Data Analysis

Based on the results of hypothesis testing between the

dependent and independent variables, the summary of

hypotheses test results can be seen in table 4.6.

Table 3 Test Results for Multiple Regression Analysis

Source: Primary data are processed by themselves

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4.4 The Influence of Country Image

on Purchase Intention

The analysis shows that country image influences

purchase intention. That is, H1 is supported. The

results of this study are supported by the research of

Vijaranakorn & Shannon (2017) which states that

there is an influence between country image on

purchase intention. The results of this hypothesis are

in accordance with the theory of planned behavior in

the attitude toward the behavior variable which states

the attitude towards behavior is determined by the

individual's judgment related to the knowledge and

individual beliefs about the behavior in this case the

purchase interest behavior. Country image is often a

consideration for every consumer who will buy a

product. For example, Chinese products, most

consumers, before buying, question the origin of the

product so that extensive knowledge is needed so that

there is no wrong information before deciding which

product to buy.

4.5 Effect of Product Perceived

Quality on Purchase Intention

The analysis shows that product perceived quality

influences purchase intention. That is, H2 is

supported. The results of this study support the

research by Saleem, Ghafar, Ibrahim, Yousuf, &

Ahmed (2015) which states that the perception of the

quality of a product directly influences buying

interest. Where we know, when the quality of a

product is said to be good, there will arise perceptions

of consumers who are constructive so as to strengthen

the product to attract purchase interest. From the

results of this hypothesis also shows that most

students in the city of Batam in particular, believe that

not all Chinese smartphone products have poor

quality, this is evidenced by the continued innovation

of Chinese smartphone products around us.

4.6 Effect of Brand Familiarity on

Purchase Intention

The analysis shows that brand familiarity influences

purchase intention. That is, H3 is supported. The

results of this study are supported by the research of

Laroche, Kim, & Zhou (1996) which states that brand

familiarity influences purchase interest. Brand

familiarity is obtained from the high level of

consumer confidence in the brand of products that are

believed to be, this shows how far consumers know

a brand of products that can affect the attractiveness

to buy. This is also in line with the theory of planned

behavior on the element of subjective norms which

states that a person's beliefs or beliefs are able to

influence the purchase interest.

5 CONCLUSIONS

5.1 Conclusion

This study aims to determine whether there is an

influence of country of origin on the purchase

intention of Chinese smartphone students majoring in

accounting at five universities in the city of Batam.

This study used a sample of 200 students. Based on

the description from the previous chapter, the

conclusions obtained are related to the results of

testing variables that are suspected to affect the

interest in purchasing Chinese smartphones, namely:

1) There is a positive country image effect on

purchase intention. 2) There is a positive effect of

product perceived quality on purchase intention. 3)

There is a positive effect of brand familiarity on

purchase intention.

5.2 Limitation

Some limitations in this research need to be pointed

out to be useful for the development of similar

research in the future. Limitations of this study are as

follows:

This study only involves respondents

majoring in accounting, amounting to 200

respondents so that it cannot be generalized to

lar

oups.

b. This research only focuses on five universities

in the cit

of Batam.

c. Using data collection methods with a

questionnaire to allow the data to be

sub

ive and,

d. Researchers had difficulty getting data due to

the lack of respondents who were willing to

fill out the ques

ionnaire.

5.3 Implication

The implication of this research is that it can

theoretically become a literature reference for further

similar studies, show evidence supporting the theory

of planned behavior, and find out how the influence

of country of origin on purchase intentions in the

present and future. In practice, it can be a

consideration for smartphone manufacturers to

develop their products and create new strategies for

companies to improve consumer perception.

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5.4 Suggestion

Based on the limitations of the problem outlined

above, there are a number of suggestions for further

research as follows:

a. Future studies can add to the sample not only

consumers' perceptions are different for each city.

b. Future studies can add other independent variables

such as perceived price and product advertising,

because the perception of prices and the advertising

strategy of a product are able to attract consumers'

interest so that they are considered to be able to

influence consumer purchasing interests.

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