The Effect of Demographic Factors on Intentions to Buy Domestic Products: Evidence from Indonesian Consumer

Authors

  • I Gede Mahatma Yuda Bakti Indonesian Institute of Sciences, Jakarta 12710, Indonesia, Faculty of Human Ecology - IPB University, Bogor 16680, Indonesia
  • Sumardjo Faculty of Human Ecology - IPB University, Bogor 16680, Indonesia

Keywords:

consumer demographic, intentions to buy, domestic product, consumer education

Abstract

Free trade agreement between Indonesia and other countries created a threat for domestic entrepreneurs. Domestic products must face more intense competition in their own domestic markets because the Indonesian market is filled with imported products. This research aims to understand the effect of Indonesian consumer demographics on intentions to buy domestic products. This research decrypted the intentions of Indonesian to purchase domestic products based on demographic factors. The research method was a survey using a questionnaire. Samples were taken using judgment-sampling. There were 204 respondents involved in this research. This research found that Indonesian consumers' gender and income influenced their intentions to buy domestic products. In contrast, age and education did not affect their intentions to buy domestic products.

References

. A.A. Widyasanti. “Do regional trade areas improve export competitiveness? A case of Indonesia.” Bulletin of Monetary, Economics and Banking, Bank Indonesia, vol. 13 (1), pp. 1 – 18, 2010.

. Pusat Kebijakan Regional dan Bilateral – Kementerian Keuangan RI. “Free Trade Agreement (FTA) dan Economic Partnership Agreement (EPA), dan Pengaruhnya terhadap Arus Perdagangan dan Investasi dengan Negara Mitra,” Laporan Hasil Kajian, BKF Kemenkeu RI, Jakarta, Indonesia, 2012.

. Y. Yusdja. “Tinjauan teori perdagangan internasional dan keunggulan kooperatif”. Forum Penelitian Agro Ekonomi, vol. 22 (2), pp. 126 – 141, 2004.

. Kementrian Perdagangan. Kajian dampak kesepakatan perdagangan bebas terhadap daya saing produk Manufaktur Indonesia. Jakarta : Pusat Kebijakan Perdagangan Luar Negeri – Kemendag RI, 2011.

. BPS (Badan Pusat Statistik) Indonesia. “Nilai Impor Migas and Non Migas Indonesia (Juta US$), 1975-2018.” Internet: https://www.bps.go.id/linkTableDinamis/view/id/898,

. BPS (Badan Pusat Statistik) Indonesia. “Impor Barang Konsumsi 1989-2018.” Internet https://www.bps.go.id/statictable/2014/09/08/1040/impor-barang-konsumsi-1989-2018.html

. Minister for employment, Skills, Small and Family Business of Australia. ““Go Local First' national campaign to support small businesses”. Internet: https://www.minister.industry.gov.au/ministers/michaeliacash/media releases/go-local-first-national-campaign-support-small-businesses” [May 05, 2020].

. D. Clayton and D.M. Higgins. “”Buy British": An Analysis of UK Attempts to Turn a Slogan into Government Policy, in the 1970s and 1980s.” Business History, June 08, 2020.

. J. Kucik and K. Pelc “Political Rhetoric as Trade Barrier: Trump's 'Buy American' Campaign and US Demand for Imports.” Internet: https://ssrn.com/abstract=3067518, Nov. 08, 2017 [Okt 22, 2020].

. Kementrian Perdagangan Dalam Negeri dan Hal Ehwal Pengguna. “Kempen Beli Barangan Malaysia.” Internet: https://www.kpdnhep.gov.my/ms/kepenggunaan/program/kempen-beli-barangan-malaysia.html [Okt 22, 2020].

. Indonesian Ministry of Trade. “Frequently Asked Questions: Aku Cinta Indonesia.” Internet: http://ditjenpdn.kemendag.go.id/detail/faq [Okt. 22, 2020].

. K.L. Granzin and J.J. Painter. “Motivational Influences on "Buy Domestic" Purchasing: Marketing Management Implications from a Study of Two Nations.” Journal of International Marketing, vol. 9 (2), pp. 73 – 96, 2001.

. K. Saffu, J.H. Walker and M. Mazurek. “The role of consumer ethnocentrism in a buy national campaign in a transitioning country: Some evidence from Slovakia." International Journal of Emerging Markets, vol 5 (2), pp. 203-226, 2010.

. A. Insch, D. Mather and J. Knight. "Buy-national campaigns: congruence determines premiums for domestic products." International Marketing Review, vol. 34 (2), pp. 239-253, 2017.

. N. Woodcock, M. Stone and Y. Ekinci. “Customer management in public sector organizations.” Journal of Direct, Data and Digital Marketing Practice, vol. 10, pp. 16 – 28, 2008.

. M.M.M. Sibanda. “Monitoring Customer-focused Quality Service Delivery in Local Government: Conceptual Issues and Perspectives for Consideration.” Africa’s Public Service Delivery & Performance Review, vol. 1 (1), pp. 4 – 25, 2012.

. K. Schedler and J. Felix. “Quality in public management: the customer perspective.” International Public Management Journal, vol. 3 (1), pp. 125 – 143, 2000.

. M.N. Shankarmahesh. “Consumer ethnocentrism: an integrative review of its antecedents and consequences.” International Marketing Review, vol. 23 (2), pp. 146-172, 2006.

. M.R. Solomon. Consumer Behavior: Buying, Having, and Being. (10thedition). USA: Pearson, 2013.

. H. Liang, D. Lu and L. Tu. “The Perceived Risk and The Consumer Decision Process – A Study on Credit Card Holders.” Thesis, International Business Program, The Department of Business Studies, Kristianstad University, Sweden, 2006.

. J.F. Engel, R.D. Blackwell and P.W. Miniard. Perilaku Konsumen (Consumer Bahavior). (6th edition). Jakarta: Binarupa Aksara, 1994.

. M. Fishbein and I. Ajzen. Belief, attitude, intention, and behavior: An introduction to theory and research. Boston, MA: Addison- Wesley, 1975.

. I. Ajzen. “The theory of planned behavior.” Organizational Behavior and Human Decision Processes, vol. 50, pp. 179- 211, 1991.

. J.C. Mowen and M. Minor. Perilaku Konsumen (Consumer Behaviour). Jakarta: Erlangga, 2002.

. W.Z.W. Halim and A. B. Hamed. “Consumer purchase intention at traditional restaurant and fast food restaurant.” in ANZMAC 2005 Conference: Consumer Behaviour, 2005.

. C. Fandos and C. Flavian. “Intrinsic and extrinsic quality attributes, loyalty and buying intention: an analysis for a PDO product.” British Food Journal, vol. 108 (8), pp. 646-662, 2006.

. S.H. Akhter. “Digital divide and purchase intention: Why demographic psychology matters.” Journal of Economic Psychology, vol. 24 (3), pp. 321-327, 2003.

. M. Burton, W. C. Wang and A. Worsley. “Demographic and psychographic associations of consumer intentions to purchase healthier food products.” Preventive Medicine Report, vol. 2, pp. 21–26, 2015.

. K.K. Kwong, O.H.M. Yau, J.S.Y. Lee, L.Y.M. Sin and A.C.B. Tse. “The Effects of Attitudinal and Demographic Factors on Intention to Buy Pirated CDs: The Case of Chinese Consumers.” Journal of Business Ethics, vol. 47 (3), pp. 223-235, 2003.

. N.A. Omar, M. A. Nazri, L. H. Osman and M. S. Ahmad. “The effect of demographic factors on consumer intention to purchase organic products in the Klang Valley: An empirical study.” Malaysian Journal of Society and Space, vol. 12 (2), pp. 68 - 82, 2016.

. H. Nadiri and M. Tümer. “Influence of ethnocentrism on consumers’ intention to buy domestically produced goods: An empirical study in North Cyprus.” Journal of Business Economics and Management, vol. 11(3), pp. 444–461, 2010.

. D. Siemieniako, K. Kubacki, E. Glińska and K. Krot. “National and regional ethnocentrism: a case study of beer consumers in Poland.” British Food Journal, vol. 113 (3), pp. 404-418, 2011.

. P. Qing, A. Lobo and L. Chongguang. “The impact of lifestyle and ethnocentrism on consumers' purchase intentions of fresh fruit in China.” Journal of Consumer Marketing, vol. 29 (1), pp. 43-51, 2012.

. E. R. Bruning. “Country of origin, national loyalty and product choice: the case of international air travel.” International Marketing Review, vol. 14 (1), pp. 59 – 74, 1997.

. S. Sharma, T.A. Shimp and J. Shin. “Consumer Ethnocentrism: A Test of Antecedents and Moderators.” Journal of the Academy of Marketing Science. vol. 23 (1), pp. 26-37, 1995.

. M. Wall and L.A. Heslop. “Consumer Attitudes toward Canadian-made versus Imported Products.” Journal of the Academy of Marketing Science, vol. 14, pp. 27-36, 1986.

. D.G. Howard. “Understanding How American Consumers Formulate Their Attitudes about Foreign Products.” Journal of International Consumer Marketing, vol. 2 (2), pp. 7-24, 1989.

. G. Balabanis, A. Diamantopoulus, R.D. Mueller and T.C. Melewar. “The impact of nationalism, patriotism and internationalism on consumer ethnocentric tendencies.” Journal of International Business Studies, vol. 32 (1), pp. 157 – 175, 2001.

. B. Z. Erdogan and C. Uzkurt. "Effects of ethnocentric tendency on consumers' perception of product attitudes for foreign and domestic products." Cross Cultural Management: An International Journal, vol. 17 (4), pp. 393 – 406, 2010.

. P. Qing, A. Lobo and L. Chongguang. "The impact of lifestyle and ethnocentrism on consumers' purchase intentions of fresh fruit in China." Journal of Consumer Marketing, vol. 29 (1), pp. 43-51, 2012.

. A. Josiassen, A. G. Assaf and I. O. Karpen. "Consumer ethnocentrism and willingness to buy." International Marketing Review, vol. 28 (6), pp. 627 – 646, 2011.

. J.J. Ray. “Racism, Conservatism and Social Class in Australia: With German, Califomian and South African Comparisons.” Personality and Individual Differences, vol. 11 (2), pp. 187-189, 1990.

. R. Rose. "National Pride in Cross-national Perspective." International Social Science Journal, vol. 37, pp. 85-96, 1985.

. D. Borsboom, G.J. Mellenbergh and J. van Heerden. “The Theoretical Status of Latent Variables.” Psychological Review. vol. 110 (2), pp. 203–219, 2003.

. S. Bandyopadhyay, N. Wongtada and G. Rice. “Measuring the impact of inter‐attitudinal conflict on consumer evaluations of foreign products.” Journal of Consumer Marketing, vol. 28 (3), pp. 211-224, 2011.

. BPS (Badan Pusat Statistik) Indonesia. “Jumlah dan distribusi penduduk.” Internet: https://sp2010.bps.go.id/ [Okt 25, 2020].

. U. Sekaran and R. Bougie. Research Methods for Business – A Skill Building Approach. (5th edition). West Sussex, United Kingdom: Johm Wiley & Sons Ltd, 2011.

. E. Stephanie. Slovin's Formula Sampling Techniques. New York, USA: Houghton-Mifflin, 2003.

. I. Ghozali, I. Aplikasi Analisis Multivariate dengan Program SPSS, Semarang: Badan Penerbit Universitas Diponegoro, 2009.

. P.R. Hinton, C. Brownlow, I. Mcmurray and B. Cozens. SPSS explained. East Sussex, England: Routledge Inc, 2004.

. A.H. Eagly. “Sex Differences in Influenceability.” Psychological Bulletin, vol. 85 (1), pp. 86-116, 1978.

. C.M. Han. “The Role of Consumer Patriotism in the Choice of Domestic versus Foreign Products.” Journal of Advertising Research, vol. 28, pp. 25-32, 1988.

. H.C. Triandis, B. Robert M.J. Villarel, M Asai, and N. Lucca. “Individualism and Collectivism: Cross-cultural Perspectives on Self- Ingroup Relationships.” Journal of Personality and Social Psychology, vol. 54 (2), pp. 323-338, 1988.

Downloads

Published

2021-01-03

How to Cite

Bakti, I. G. M. Y. ., & Sumardjo. (2021). The Effect of Demographic Factors on Intentions to Buy Domestic Products: Evidence from Indonesian Consumer. International Journal of Sciences: Basic and Applied Research (IJSBAR), 55(1), 45–58. Retrieved from https://www.gssrr.org/index.php/JournalOfBasicAndApplied/article/view/12114

Issue

Section

Articles