Buying local or imported goods? Profiling non-income consumers in developing countries

Research output: Contribution to journalArticle

Abstract

This study attempts to profile non-income consumers by examining their decisions to buy local or imported products. Hypotheses were drawn from discussions on the comparative advantages of advanced and developing countries, as well as the effects of a product’s country-of-origin on customers’ purchasing decisions. Data was collected on 296 university students in Malaysia and analyzed through probit regression analysis. The findings reveal that foreign products from advanced countries are preferred by male students because of the superior quality and brand image. On the other hand, family members encourage students to buy local products because they are perceived as being less expensive. Also, students who receive scholarships are more likely to buy local products than self-sponsored students. This research offers insights into ex-ante purchasing behavior in developing countries particularly among non-income consumers.

Original languageEnglish
Pages (from-to)688-695
Number of pages8
JournalInternational Review of Management and Marketing
Volume6
Issue number4
Publication statusPublished - 2016

Fingerprint

Developing countries
Profiling
Regression analysis
Malaysia
Comparative advantage
Country of origin
Brand image
Probit regression
Purchasing
Purchasing behavior

Keywords

  • Comparative advantages
  • Country-of-origin
  • Developing countries
  • Non-income consumer
  • Purchasing behavior

ASJC Scopus subject areas

  • Business, Management and Accounting(all)

Cite this

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abstract = "This study attempts to profile non-income consumers by examining their decisions to buy local or imported products. Hypotheses were drawn from discussions on the comparative advantages of advanced and developing countries, as well as the effects of a product’s country-of-origin on customers’ purchasing decisions. Data was collected on 296 university students in Malaysia and analyzed through probit regression analysis. The findings reveal that foreign products from advanced countries are preferred by male students because of the superior quality and brand image. On the other hand, family members encourage students to buy local products because they are perceived as being less expensive. Also, students who receive scholarships are more likely to buy local products than self-sponsored students. This research offers insights into ex-ante purchasing behavior in developing countries particularly among non-income consumers.",
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