Country of Origin Effect on Purchase Intention Towards Korean Skincare Products

https://doi.org/10.35912/jasmi.v1i3.3150
Published: Jun 24, 2024

Abstract:

Purpose: The purpose of this research is to investigate the effect of country of origin on purchase intention towards Korean skincare products. Further, the study examines the mediating role of perceived quality and perceived price between the relationship of country of origin and purchase intention.

Research methodology: This study was gathered online survey from 140 people within Generation Z in West Java, Indonesia. Using Structural Equation Modelling (SEM) with a Partial Least Square (PLS) approach.

Results: This study found that country of origin and perceived price have no influence on purchase intention, while perceived quality has a significant influence on purchase intention. However, when perceived quality is included as a mediating variable, the influence of country of origin on purchase intention becomes significant.

Limitations: The study focused on specific skincare products and Generation Z demographics. Future research could explore a variety of products, markets, and generations to obtain more specific results.

Contribution: The study contributes insights into decision making for skincare market players, offering practical implications for marketers to optimize and increase consumer purchasing interest.

Keywords:
1. country of origin
2. perceived quality
3. perceived price
4. purchase intention
5. korean skincare products
Authors:
1 . Nabila Aulia Soraya Putri
2 . Diana Sari
3 . Kurnia Khafidatur Rafi'ah
View PDF
How to Cite
Putri, N. A. S., Sari, D., & Rafi’ah, K. K. (2024). Country of Origin Effect on Purchase Intention Towards Korean Skincare Products. Jurnal Studi Multidisiplin Ilmu, 1(3), 111–120. https://doi.org/10.35912/jasmi.v1i3.3150
Download Citation
  1. Endnote/Zotero/Mendeley (RIS)
  2. BibTeX

Downloads

Download data is not yet available.
Issue & Section
Vol. 1 No. 3 (2023): September
Articles
Creative Commons License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

References

    Akdeniz, M. B., & Calantone, R. J. (2017). A longitudinal examination of the impact of quality perception gap on brand performance in the US Automotive Industry. Mark Lett, 28, 43–57. https://doi.org/https://doi.org/10.1007/s11002-015-9392-8

    Alam, M. E. F. (2020). The influence of quality on consumers’ purchase intention between local and multinational cosmetic firm. Journal of International Business and Management, 3(1), 1–11. https://doi.org/https://doi.org/10.37227/jibm-2020-63

    Alessandrina, D. (2022). Ini Alasan Somethinc Gandeng BA Asal Korea Selatan. Marketeers. https://www.marketeers.com/ini-alasan-somethinc-gandeng-ba-asal-korea-selatan/

    Allied Market Research. (2023). Skincare Market Size, Share, Competitive Landscape and Trend Analysis Report by Products, by Distribution Channel, by Gender, by Packaging?: Global Opportunity Analysis and Industry Forecast,2021-2031. Allied Market Research. https://www.alliedmarketresearch.com/skincare-market-A31878#:~:text=Skincare Market Statistics,health and improving skin quality.

    Amin, A. M., & Yanti, R. F. (2021). Pengaruh Brand Ambassador, E-WOM, Gaya Hidup, Country Of Origin dan Motivasi Terhadap Keputusan Pembelian Produk Skincare Korea Nature Republic. Invest: Jurnal Inovasi Bisnis Dan Akuntansi, 2(1), 1–14. https://doi.org/https://doi.org/10.55583/invest.v2i1.111

    Bhattacharya, S., Sharma, R. P., & Gupta, A. (2023). Does e-retailer’s country of origin influence consumer privacy, trust and purchase intention? Journal of Consumer Marketing, 40(2), 248–259. https://doi.org/https://doi.org/10.1108/JCM-04-2021-4611

    Brandão, A., & da Costa, A. G. (2021). Extending the theory of planned behaviour to understand the effects of barriers towards sustainable fashion consumption. European Business Review, 33(5), 742–774. https://doi.org/ttps://doi.org/10.1108/EBR-11-2020-0306

    Cakici, A. C., Akgunduz, Y., & Yildirim, O. (2019). The impact of perceived price justice and satisfaction on loyalty: the mediating effect of revisit intention. Tourism Review, 74(3), 443–462. https://doi.org/https://doi.org/10.1108/TR-02-2018-0025

    Chiang, C. F., & Jang, S. S. (2007). The effects of perceived price and brand image on value and purchase intention: Leisure travelers’ attitudes toward online hotel booking. Journal of Hospitality & Leisure Marketing, 15(3), 49–69. https://doi.org/https://doi.org/10.1300/J150v15n03_04

    Chow, C. S., Chow, W. C., Leong, W. I., & Zheng, S. (2024). How product hedonism affects the Country-of-Origin effect on product perceived quality and price in the China market. Asia Pacific Journal of Marketing and Logistics., 36(4), 862–877. https://doi.org/https://doi.org/10.1108/APJML-09-2022-0808

    Compas. (2022). 5 Brand Perawatan Wajah Terlaris di E-commerce Indonesia. Compas. https://compas.co.id/article/top-5-brand-perawatan-wajah/

    Darmawan, R. D., Samuel, H., & Wijaya, S. (2021). Country-of-Origin image and its effect on purchase intention: A study on a Chinese smartphone brand. 2nd International Conference on Business and Management of Technology (ICONBMT 2020), 308–314. https://doi.org/10.2991/aebmr.k.210510.048

    Garvin, D. A. (1984). Competing on the Eight Dimensions of Quality. Harvard Business Review, 62(4), 100–109.

    Hung, K. P., Huiling Chen, A., Peng, N., Hackley, C., Amy Tiwsakul, R., & Chou, C. L. (2011). Antecedents of luxury brand purchase intention. Journal of Product & Brand Management, 20(6), 457–467. https://doi.org/https://doi.org/10.1108/10610421111166603

    Kim, H. W., Xu, Y., & Gupta, S. (2012). Which is more important in Internet shopping, perceived price or trust? Electronic Commerce Research and Applications, 11(3), 241–252. https://doi.org/https://doi.org/10.1016/j.elerap.2011.06.003

    Kukreti, R., & Yadav, M. (2023). The influence of brand personality on brand love, perceived quality and purchase intention: a study of e-retailing sites. Global Knowledge, Memory and Communication, 1–23. https://doi.org/https://doi.org/10.1108/GKMC-05-2023-0153

    Kumar, S., & Gautam, A. (2021). Country of origin effect on purchase intention towards italian luxury fashion: mediating role of brand perception and social status. Metamorphosis, 20(1), 16–24. https://doi.org/https://doi.org/10.1177/09726225211030

    Lee, J. E., Goh, M. L., & Mohd Noor, M. N. Bin. (2019). Understanding purchase intention of university students towards skin care products. PSU Research Review, 3(3), 161–178. https://doi.org/https://doi.org/10.1108/PRR-11-2018-0031

    Li, Y., Teng, W., Liao, T. T., & Lin, T. M. (2021). Exploration of patriotic brand image: its antecedents and impacts on purchase intentions. Asia Pacific Journal of Marketing and Logistics, 33(6), 1455–1481. https://doi.org/https://doi.org/10.1108/APJML-11-2019-0660

    Luczak, T., Burch, R., Smith, B., Chander, H., Carruth, D., Lamberth, J., Crane, C., Bollwinkel, D., & Burgos, B. (2022). Using human factors engineering and Garvin’s product quality to develop a basketball shoe taxonomy. Proceedings of the Institution of Mechanical Engineers, Part P: Journal of Sports Engineering and Technology, 236(1), 60–69. https://doi.org/https://doi.org/10.1177/175433712096542

    Markplus.inc. (2019). Beauty Index 2019. In ZAP Beauty.

    Merabet, A. (2020). The effect of country?of?origin image on purchase intention. The mediating role of perceived quality and perceived price. European Journal of Business and Management Research, 5(6), 1–4. https://doi.org/https://doi.org/10.24018/ejbmr.2020.5.6.589

    Nurhayati-Wolff, H. (2021). Skincare products used by respondents in Indonesia 2021 by origin. Statista. https://www.statista.com/statistics/1041474/indonesia-skincare-products-used-by-origin/

    Pan, H., Liu, Z., & Ha, H. Y. (2022). Perceived price and trustworthiness of online reviews: different levels of promotion and customer type. International Journal of Contemporary. International Journal of Contemporary Hospitality Management, 34(10), 3834–3854. https://doi.org/https://doi.org/10.1108/IJCHM-12-2021-1524

    Peña-García, N., Gil-Saura, I., Rodríguez-Orejuela, A., & Siqueira-Junior, J. R. (2020). Purchase intention and purchase behavior online: A cross-cultural approach. Heliyon, 6(6), 1–11. https://doi.org/https://doi.org/10.1016/j.heliyon.2020.e04284

    Pipoli de Azambuja, G. M. M., García-Arrizabalaga, I., & Rodríguez-Peña, G. (2020). Analyzing the purchase intention of Peruvian maca. Journal of Enterprising Communities: People and Places in the Global Economy, 14(1), 91–112. https://doi.org/https://doi.org/10.1108/JEC-09-2019-0083

    Populix. (2022). Unveiling Indonesian Beauty & Dietary Lifestyle. Populix. https://info.populix.co/id/reports/2022-08-beauty-dietary-trends

    Qu, Y., Cie?lik, A., Fang, S., & Qing, Y. (2023). The role of online interaction in user stickiness of social commerce: The shopping value perspective. Digital Business, 3(2), 1–14. https://doi.org/https://doi.org/10.1016/j.digbus.2023.100061

    Roth, M. S., & Romeo, J. B. (1992). Matching product catgeory and country image perceptions: A framework for managing country-of-origin effects. Journal of International Business Studies, 23, 433–497. https://doi.org/https://doi.org/10.1057/palgrave.jibs.8490276

    Saraswati, A., Abdillah, Y., & Rut Damayanti, C. (2023). The Deployment of K-Pop in Asian Market through the Implementation of Cross-Country Business Contracts by the Korean Entertainment Company. Jurnal Ilmu Sosial, 22(1), 44–67. https://doi.org/10.14710/jis.22.1.2023.44-67

    Schiffman, L. G., & Wisenblit, J. L. (2015). Consumer Behavior (11th Ed). Pearson. London, England.

    Sekaran, U., & Bougie, R. (2016). Research methods for business: A skill building approach. Wiley & Sons. West Sussex.

    Statista Research Department. (2024). Revenue of the skin care market in Indonesia from 2019 to 2028. Statista. https://www.statista.com/forecasts/1214255/indonesia-revenue-skin-care-market

    Suhud, U., Allan, M., Rahayu, S., & Prihandono, D. (2022). When brand image, perceived price, and perceived quality interplay in predicting purchase intention: Developing a rhombus model. Academic Journal of Interdisciplinary Studies, 11(1), 232–245. https://doi.org/https://doi.org/10.36941/ajis-2022-0021

    Thi Hai Thuy, H., & Hien Minh, H. (2020). The impact of CSR on brand image: a survey amongst Gen Z Consumers´ perception toward a supermarket chain in Viet Nam. Trendy v Podnikani-Business Trends, 10(1), 23–30. https://doi.org/https://doi.org/10.24132/jbt.2020.10.1.31_44

    Wang, T., Chen, Y., Qiao, M., & Snoussi, H. (2018). A fast and robust convolutional neural network-based defect detection model in product quality control. The International Journal of Advanced Manufacturing Technology, 94, 3465–3471. https://doi.org/https://doi.org/10.1007/s00170-017-0882-0

    Xu, X., Chan, F. T., & Chan, C. K. (2019). Optimal option purchase decision of a loss-averse retailer under emergent replenishment. International Journal of Production Research, 57(14), 4594-4620. https://doi.org/https://doi.org/10.1080/00207543.2019.1579935

    Yang, Z., Li, Q., Charles, V., Xu, B., & Gupta, S. (2023). Supporting personalized new energy vehicle purchase decision-making: Customer reviews and product recommendation platform. International Journal of Production Economics, 265, 1–24. https://doi.org/https://doi.org/10.1016/j.ijpe.2023.109003

    Zeugner-Roth, K. P., & Bartsch, F. (2020). COO in print advertising: Developed versus developing market comparisons. Journal of Business Research. Journal of Business Research, 120, 364–378. https://doi.org/https://doi.org/10.1016/j.jbusres.2019.08.035

    Zhao, X., Lynch Jr, J. G., & Chen, Q. (2010). Reconsidering Baron and Kenny: Myths and truths about mediation analysis. Journal of Consumer Research, 37(2), 197–206.

  1. Akdeniz, M. B., & Calantone, R. J. (2017). A longitudinal examination of the impact of quality perception gap on brand performance in the US Automotive Industry. Mark Lett, 28, 43–57. https://doi.org/https://doi.org/10.1007/s11002-015-9392-8
  2. Alam, M. E. F. (2020). The influence of quality on consumers’ purchase intention between local and multinational cosmetic firm. Journal of International Business and Management, 3(1), 1–11. https://doi.org/https://doi.org/10.37227/jibm-2020-63
  3. Alessandrina, D. (2022). Ini Alasan Somethinc Gandeng BA Asal Korea Selatan. Marketeers. https://www.marketeers.com/ini-alasan-somethinc-gandeng-ba-asal-korea-selatan/
  4. Allied Market Research. (2023). Skincare Market Size, Share, Competitive Landscape and Trend Analysis Report by Products, by Distribution Channel, by Gender, by Packaging?: Global Opportunity Analysis and Industry Forecast,2021-2031. Allied Market Research. https://www.alliedmarketresearch.com/skincare-market-A31878#:~:text=Skincare Market Statistics,health and improving skin quality.
  5. Amin, A. M., & Yanti, R. F. (2021). Pengaruh Brand Ambassador, E-WOM, Gaya Hidup, Country Of Origin dan Motivasi Terhadap Keputusan Pembelian Produk Skincare Korea Nature Republic. Invest: Jurnal Inovasi Bisnis Dan Akuntansi, 2(1), 1–14. https://doi.org/https://doi.org/10.55583/invest.v2i1.111
  6. Bhattacharya, S., Sharma, R. P., & Gupta, A. (2023). Does e-retailer’s country of origin influence consumer privacy, trust and purchase intention? Journal of Consumer Marketing, 40(2), 248–259. https://doi.org/https://doi.org/10.1108/JCM-04-2021-4611
  7. Brandão, A., & da Costa, A. G. (2021). Extending the theory of planned behaviour to understand the effects of barriers towards sustainable fashion consumption. European Business Review, 33(5), 742–774. https://doi.org/ttps://doi.org/10.1108/EBR-11-2020-0306
  8. Cakici, A. C., Akgunduz, Y., & Yildirim, O. (2019). The impact of perceived price justice and satisfaction on loyalty: the mediating effect of revisit intention. Tourism Review, 74(3), 443–462. https://doi.org/https://doi.org/10.1108/TR-02-2018-0025
  9. Chiang, C. F., & Jang, S. S. (2007). The effects of perceived price and brand image on value and purchase intention: Leisure travelers’ attitudes toward online hotel booking. Journal of Hospitality & Leisure Marketing, 15(3), 49–69. https://doi.org/https://doi.org/10.1300/J150v15n03_04
  10. Chow, C. S., Chow, W. C., Leong, W. I., & Zheng, S. (2024). How product hedonism affects the Country-of-Origin effect on product perceived quality and price in the China market. Asia Pacific Journal of Marketing and Logistics., 36(4), 862–877. https://doi.org/https://doi.org/10.1108/APJML-09-2022-0808
  11. Compas. (2022). 5 Brand Perawatan Wajah Terlaris di E-commerce Indonesia. Compas. https://compas.co.id/article/top-5-brand-perawatan-wajah/
  12. Darmawan, R. D., Samuel, H., & Wijaya, S. (2021). Country-of-Origin image and its effect on purchase intention: A study on a Chinese smartphone brand. 2nd International Conference on Business and Management of Technology (ICONBMT 2020), 308–314. https://doi.org/10.2991/aebmr.k.210510.048
  13. Garvin, D. A. (1984). Competing on the Eight Dimensions of Quality. Harvard Business Review, 62(4), 100–109.
  14. Hung, K. P., Huiling Chen, A., Peng, N., Hackley, C., Amy Tiwsakul, R., & Chou, C. L. (2011). Antecedents of luxury brand purchase intention. Journal of Product & Brand Management, 20(6), 457–467. https://doi.org/https://doi.org/10.1108/10610421111166603
  15. Kim, H. W., Xu, Y., & Gupta, S. (2012). Which is more important in Internet shopping, perceived price or trust? Electronic Commerce Research and Applications, 11(3), 241–252. https://doi.org/https://doi.org/10.1016/j.elerap.2011.06.003
  16. Kukreti, R., & Yadav, M. (2023). The influence of brand personality on brand love, perceived quality and purchase intention: a study of e-retailing sites. Global Knowledge, Memory and Communication, 1–23. https://doi.org/https://doi.org/10.1108/GKMC-05-2023-0153
  17. Kumar, S., & Gautam, A. (2021). Country of origin effect on purchase intention towards italian luxury fashion: mediating role of brand perception and social status. Metamorphosis, 20(1), 16–24. https://doi.org/https://doi.org/10.1177/09726225211030
  18. Lee, J. E., Goh, M. L., & Mohd Noor, M. N. Bin. (2019). Understanding purchase intention of university students towards skin care products. PSU Research Review, 3(3), 161–178. https://doi.org/https://doi.org/10.1108/PRR-11-2018-0031
  19. Li, Y., Teng, W., Liao, T. T., & Lin, T. M. (2021). Exploration of patriotic brand image: its antecedents and impacts on purchase intentions. Asia Pacific Journal of Marketing and Logistics, 33(6), 1455–1481. https://doi.org/https://doi.org/10.1108/APJML-11-2019-0660
  20. Luczak, T., Burch, R., Smith, B., Chander, H., Carruth, D., Lamberth, J., Crane, C., Bollwinkel, D., & Burgos, B. (2022). Using human factors engineering and Garvin’s product quality to develop a basketball shoe taxonomy. Proceedings of the Institution of Mechanical Engineers, Part P: Journal of Sports Engineering and Technology, 236(1), 60–69. https://doi.org/https://doi.org/10.1177/175433712096542
  21. Markplus.inc. (2019). Beauty Index 2019. In ZAP Beauty.
  22. Merabet, A. (2020). The effect of country?of?origin image on purchase intention. The mediating role of perceived quality and perceived price. European Journal of Business and Management Research, 5(6), 1–4. https://doi.org/https://doi.org/10.24018/ejbmr.2020.5.6.589
  23. Nurhayati-Wolff, H. (2021). Skincare products used by respondents in Indonesia 2021 by origin. Statista. https://www.statista.com/statistics/1041474/indonesia-skincare-products-used-by-origin/
  24. Pan, H., Liu, Z., & Ha, H. Y. (2022). Perceived price and trustworthiness of online reviews: different levels of promotion and customer type. International Journal of Contemporary. International Journal of Contemporary Hospitality Management, 34(10), 3834–3854. https://doi.org/https://doi.org/10.1108/IJCHM-12-2021-1524
  25. Peña-García, N., Gil-Saura, I., Rodríguez-Orejuela, A., & Siqueira-Junior, J. R. (2020). Purchase intention and purchase behavior online: A cross-cultural approach. Heliyon, 6(6), 1–11. https://doi.org/https://doi.org/10.1016/j.heliyon.2020.e04284
  26. Pipoli de Azambuja, G. M. M., García-Arrizabalaga, I., & Rodríguez-Peña, G. (2020). Analyzing the purchase intention of Peruvian maca. Journal of Enterprising Communities: People and Places in the Global Economy, 14(1), 91–112. https://doi.org/https://doi.org/10.1108/JEC-09-2019-0083
  27. Populix. (2022). Unveiling Indonesian Beauty & Dietary Lifestyle. Populix. https://info.populix.co/id/reports/2022-08-beauty-dietary-trends
  28. Qu, Y., Cie?lik, A., Fang, S., & Qing, Y. (2023). The role of online interaction in user stickiness of social commerce: The shopping value perspective. Digital Business, 3(2), 1–14. https://doi.org/https://doi.org/10.1016/j.digbus.2023.100061
  29. Roth, M. S., & Romeo, J. B. (1992). Matching product catgeory and country image perceptions: A framework for managing country-of-origin effects. Journal of International Business Studies, 23, 433–497. https://doi.org/https://doi.org/10.1057/palgrave.jibs.8490276
  30. Saraswati, A., Abdillah, Y., & Rut Damayanti, C. (2023). The Deployment of K-Pop in Asian Market through the Implementation of Cross-Country Business Contracts by the Korean Entertainment Company. Jurnal Ilmu Sosial, 22(1), 44–67. https://doi.org/10.14710/jis.22.1.2023.44-67
  31. Schiffman, L. G., & Wisenblit, J. L. (2015). Consumer Behavior (11th Ed). Pearson. London, England.
  32. Sekaran, U., & Bougie, R. (2016). Research methods for business: A skill building approach. Wiley & Sons. West Sussex.
  33. Statista Research Department. (2024). Revenue of the skin care market in Indonesia from 2019 to 2028. Statista. https://www.statista.com/forecasts/1214255/indonesia-revenue-skin-care-market
  34. Suhud, U., Allan, M., Rahayu, S., & Prihandono, D. (2022). When brand image, perceived price, and perceived quality interplay in predicting purchase intention: Developing a rhombus model. Academic Journal of Interdisciplinary Studies, 11(1), 232–245. https://doi.org/https://doi.org/10.36941/ajis-2022-0021
  35. Thi Hai Thuy, H., & Hien Minh, H. (2020). The impact of CSR on brand image: a survey amongst Gen Z Consumers´ perception toward a supermarket chain in Viet Nam. Trendy v Podnikani-Business Trends, 10(1), 23–30. https://doi.org/https://doi.org/10.24132/jbt.2020.10.1.31_44
  36. Wang, T., Chen, Y., Qiao, M., & Snoussi, H. (2018). A fast and robust convolutional neural network-based defect detection model in product quality control. The International Journal of Advanced Manufacturing Technology, 94, 3465–3471. https://doi.org/https://doi.org/10.1007/s00170-017-0882-0
  37. Xu, X., Chan, F. T., & Chan, C. K. (2019). Optimal option purchase decision of a loss-averse retailer under emergent replenishment. International Journal of Production Research, 57(14), 4594-4620. https://doi.org/https://doi.org/10.1080/00207543.2019.1579935
  38. Yang, Z., Li, Q., Charles, V., Xu, B., & Gupta, S. (2023). Supporting personalized new energy vehicle purchase decision-making: Customer reviews and product recommendation platform. International Journal of Production Economics, 265, 1–24. https://doi.org/https://doi.org/10.1016/j.ijpe.2023.109003
  39. Zeugner-Roth, K. P., & Bartsch, F. (2020). COO in print advertising: Developed versus developing market comparisons. Journal of Business Research. Journal of Business Research, 120, 364–378. https://doi.org/https://doi.org/10.1016/j.jbusres.2019.08.035
  40. Zhao, X., Lynch Jr, J. G., & Chen, Q. (2010). Reconsidering Baron and Kenny: Myths and truths about mediation analysis. Journal of Consumer Research, 37(2), 197–206.