Brand origin (BO) has been suggested as an important determinant of brand evaluation and purchase intention. However, previous studies have indicated that consumers have…
Brand origin (BO) has been suggested as an important determinant of brand evaluation and purchase intention. However, previous studies have indicated that consumers have limited knowledge and ability to recognize national origin of brands. The purpose of this paper is to assess brand origin recognition accuracy (BORA) and its relationships with brand evaluation and purchase intention in the Indonesian laptop market.
A convenient sample of 195 people in Daerah Istimewa Yogyakarta participated in the survey. They were given a list of 18 laptop brands (four local and 14 foreign brands) and were asked to identify their actual national origins.
The study found that consumers are more likely to misidentify than correctly recognize a true BO. This limited ability also has contributed to the low BORA scores for both local and foreign brands. Brand evaluation was found to be positively correlated with purchase intention. However, the current study could only find partial supports for the relationship between BORA scores and brand evaluation as well as purchase intention.
Many Indonesian consumers are unaware of the laptops’ BO, whether it is foreign or local. Companies need to inform, educate, and/or remind consumers of their brand’s true origin and avoid being associated with a weaker country image. Furthermore, despite all four Indonesian laptop brand names seem to use non-Indonesian names, only one brand gains a slightly better brand evaluation from favorable misclassification. It may suggest that the effectiveness of foreign branding strategy in the Indonesian laptop market is debatable.
This is one of the few studies examining BORA in Indonesia, the world’s fourth most populous country and the largest laptop market in Southeast Asia.