Customer Ethnocentrism and Product Quality as Determinants of Purchase Intention: Evidence From Indonesian Local Brands

Annisa Retno Utami and Euis Widiati ()
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Annisa Retno Utami: Universitas Sahid, Faculty of Economics and Business
Euis Widiati: Universitas Sahid, Faculty of Economics and Business

A chapter in Proceedings of the 4th International Conference on Management and Business (ICoMB 2025), 2026, pp 49-64 from Springer

Abstract: Abstract This study aims to examine the determinants of purchase intention toward Indonesian local brands by focusing on two key predictors: customer ethnocentrism and product quality. The growing competition between local and foreign brands makes it essential to understand the behavioral factors influencing consumer purchase decisions in emerging markets such as Indonesia. A quantitative research method was employed using Partial Least Squares Structural Equation Modeling (PLS-SEM). Data were collected from 245 respondents who were consumers familiar with Indonesian local products across fashion, cosmetics, and food and beverage categories. The results reveal that product quality has a significant positive effect on purchase intention, indicating that consumers’ perceptions of reliable performance, durability, and value strongly drive their purchase intentions for local brands. Conversely, customer ethnocentrism shows a weak and statistically insignificant influence on purchase intention. The model explains 36.4% of the variance in purchase intention, demonstrating moderate predictive power. These results underscore the need for local brand marketers to prioritize improving product quality alongside national identity messaging. This study contributes to the literature on consumer behavior in emerging markets by examining ethnocentrism and product quality from both perspectives.

Keywords: Customer Ethnocentrism; Consumer Behavior; Product Quality; Purchase Intention; Local Brands (search for similar items in EconPapers)
Date: 2026
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DOI: 10.2991/978-94-6239-656-2_5

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