PR DEFENSE Flashcards
Reason for conducting the Research
-With the rise of competition in the industry (because of international products), companies must comprehend how to increase customer satisfaction and brand loyalty.
-Brand loyalty enhances brand image and generates income and sales -Repeat purchase is the backbone of brand loyalty, establishing a positive cycle of feedback in which satisfied consumers keep buying
Advantages of Local vs. International Products
Local - Perception of quality
Cultural significance
(in communities w/ strong nationalism)
International - Perception of superiority
Uniqueness
Credibility
Objectives of the study
-Contribute to understanding the relationship between purchasing behavior and ethnocentrism
-Delve deeper into the factors influencing consumers’ repeat purchase intention for local and international products
-Provide further insight into what drives consumer repeat purchase intention
Research Gaps
-Present studies have explored how consumer behavior functions, focused on what drives consumers to make purchase intentions and to repurchase the same products
-Sivaram et al. (2019): Prior perceived quality influences decisions
-Gaps regarding repeat purchase intention exists, particularly in comparison between local and international products
The example of previous research proves that the context of local and international products matters, yet there is limited exploration of these factors.
-Sulhaini (2020): ethnocentrism plays a large part in purchase intent toward local products -Elliot and Cameron (1994): COE is a factor in consumer’s purchasing decisions
Consumer Perceived Value and Its Influences on Purchasing Decisions
-DAM (2020): Perceived value refers to the total assessment of a subjectively judged target while taking evaluation criteria into consideration
High-level Abstractions
-Means-End Model by Zeithaml (1988): Product categories can be categorized using high-level abstraction, which are product attributes that can be generalized as it is common among other products; Taste is a high-level abstraction as it is relevant across 33 food product categories
-Andrianto (2019): Customer satisfaction and purchase decisions are positively and significantly impacted by taste and product quality; Consumers often weigh the sensory experience of a product (e.g. taste), alongside price when forming perceptions, which can either drive or deter purchase
Consumer Perceived Value and Its Influences on Intrinsic Attributes
-Chonpracha et al. (2020): Intrinsic attributes are innate to the product itself and cannot be interfered with without changing its physical properties (e.g. appearance, tase, and texture)
-Togawa et al. (2019): Most shopping decisions are made in-store, with 90% made after the consumer has examined the products
-Gil-Perez et al. (2019): Packaging imagery and design elements significantly impact consumer responses to food products; Depending on how they are used, these element can create a perception of quality and luxury, ultimately guiding consumers’ purchasing choices
Consumer Perceived Value and Its Influences on
Consumer Perceived Value and Its Influences on Extrinsic Attributes
-Hoffman et al. (2020): Extrinsic attributes, specifically price, are essential levers to increase food attractiveness and stimulate purchases without altering the physical properties of the product itself
-Yasri et al. (2020): If the perception of price is inconsistent with what is possible for them to receive, the likelihood of purchase is unlikely
-Siregar et al. (2022): Taste and price determines customer satisfaction, which in turn influences their purchase decision
Influence of Perceived Quality on Purchase Intent
-Sivaram et al. (2019): Purchase intent is the tendency or plan of a consumer to acquire an item or service in the future
-It emphasizes that a customer’s past opinion of a product’s quality plays a significant influence on their overall assessment
-This perception incl. a range of perceived quality dimensions (incl. functionality, pricing, packaging, promotion, and quality of service)
-These dimensions have an impact on elements influencing purchase intent (incl. attention, interest, desire, and action)
-Kyto et al. (2019): Purchasing decisions are driven by expectations set by the brand and packaging design, along with prior knowledge of the product category and related categories
-DAM (2020): To improve purchase intent, consumers’ perceptions of brand choice, value, and trust must be improved
Factors Influencing Repeat Purchase Intentions and Brand Loyalty
-Yasri et al. (2020): Repeat purchase intentions represent a consumer’s intention to make another purchase from the same retailer or supplier
-Jayasuriya et al. (2020): When a customer purchases the same item repeatedly, it indicates that they genuinely appreciate it and that it has a beneficial effect on their behavior
-This indicates that the buyer has begun to develop brand loyalty to that specific brand when it pertains to their plan to make several purchases in the future
Influence of Country-of-Origin on Consumer Perceptions and Purchase Intentions
-Rezvani et al. (2012): COO can have a positive or negative impact on customer intention, depending on the effect that the country of manufacture has on the buyers’ perceptions
-Place of manufacture may influence people’s insight in their evaluation of the quality of products; this effect is pronounced in markets where consumers associate certain countries with high quality/authenticity
-Products from developed countries are often perceived as superior due to the advanced technological and manufacturing capabilities associated with these nations
-Batra et al. (2008): Consumers in developing nations often favor products from developed countries due to their perceived status beyond quality assessments
-The preferences for foreign brands is stronger among those who admire economically developed countries
