Impact of Country of Origin Effect (COE) on Consumer Purchase Intentions

Pradeep Dharmadasa () and Chanaka Wijewardena ()
Additional contact information
Pradeep Dharmadasa: Faculty of Management and Finance, University of Colombo
Chanaka Wijewardena: University of Colombo

International Journal of Business and Management, 2019, vol. 7, issue 1, 74-86

Abstract: With the increasing trend of globalization, there is an influx of foreign goods and services into a country and therefore the country of origin effect (COE) is significantly becoming a more important driver in consumer purchase intentions. Highlighting two dimensions of COE, namely, performance equity and emotional equity, this study examines the impact of COE on consumer purchase intentions in favour of Indian made products of Sri Lankan consumers. Further, the study investigates whether purchase intentions in favour of Indian made products differ based on the ethnicity of the consumer. Data collected from 321 students selected from a cohort of postgraduates in business management from the University of Colombo, Sri Lanka, were analyzed using hierarchical regression and ANOVA with Tukey?s HSD test. Moreover, factor analysis with Varimax Kaiser Normalization was employed to generate the factors. Results indicate that both emotional and performance dimensions significantly influence consumer purchase intentions in favour of Indian made products. With regard to ethnicity, the results show that there exists a difference between Sinhalese and Tamils in their preference for Indian made products.

Keywords: country of origin effect; emotional equity; performance equity; purchase intention; Sri Lanka; India (search for similar items in EconPapers)
JEL-codes: F20 M31 M39 (search for similar items in EconPapers)
Date: 2019
References: Add references at CitEc
Citations:

Downloads: (external link)
https://iises.net/international-journal-of-busines ... lication-detail-1430
https://iises.net/international-journal-of-busines ... tail-1430?download=6

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sek:jijobm:v:7:y:2019:i:1:p:74-86

Access Statistics for this article

International Journal of Business and Management is currently edited by Klara Cermakova, Tana Kubatova

More articles in International Journal of Business and Management from International Institute of Social and Economic Sciences
Bibliographic data for series maintained by Klara Cermakova ().