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DOES COUNTRY OF ORIGIN OF INGREDIENT-PRODUCT MATTER? A STUDY OF HOST-PRODUCT PURCHASE INTENTION
Corresponding Author(s) : Rosa Prafitri Juniarti
Humanities & Social Sciences Reviews,
Vol. 8 No. 2 (2020): March
Abstract
Purpose of the study: This study aimed to analyze how the country of origin of ingredient products may influence host-product purchase intention.
Methodology: This study aimed to analyze how the country of origin of the ingredient product may influence host-product purchase intention. It was an experimental research with between-subject 2 (country of origin from host product; favorable, unfavorable) and within-subject of two product types (high-involvement, low involvement). The participants were undergraduate students who took Management studies. The evaluation of participants was through questionnaires.
Result: The result found that country of origin of ingredient product merely influenced the purchase intention of host products with high-involvement, while low-involvement products and the other variables such as brand probably had higher contributions.
Implications: Companies can consider the country of origin of the suppliers of ingredient products and communicate the country of origin of the ingredient products to consumers.
Novelty: This study provides new insight into product ingredient research, specifically the influence of the country of origin of the product ingredient on the purchase intention of the host product. Moreover, this research also considers product involvement in experiments.
Keywords
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- Afriani, T. & Asandimitra, N. (2019). Determinants of Customer Preference to Save in Islamic Bank. Al-Uqud: Journal of Islamic Economics, 4(1), 1-17. http://dx.doi.org/10.26740/al-uqud.v4n1.p1-17. DOI: https://doi.org/10.26740/al-uqud.v4n1.p1-17
- Ahmed, S., & D’Astous, A. (2008). Antecedents, moderators and dimensions of country-of-origin evaluations. International Marketing Review, 25(1), 75–106. https://doi.org/https://doi.org/10.1108/02651330810851890 DOI: https://doi.org/10.1108/02651330810851890
- Ahmed, Z. U., Johnson, J. P., Yang, X., Kheng Fatt, C., Sack Teng, H., & Chee Boon, L. (2004). Does the country of origin matter for lowâ€involvement products? International Marketing Review, 21(1), 102–120. https://doi.org/10.1108/02651330410522925 DOI: https://doi.org/10.1108/02651330410522925
- Barta, R., Feilmayr, C., Pröll, B., Grün, C., & Werthner, H. (2009). Covering the semantic space of tourism – an approach based on modularized ontologies. ACM International Conference Proceeding Series Proceedings of the 1st Workshop on Context. https://doi.org/10.1145/1552262.1552263 DOI: https://doi.org/10.1145/1552262.1552263
- Beverland, M. B., Napoli, J., & Yakimova, R. (2007). Branding the business marketing offer: exploring brand attributes in business markets. Journal of Business & Industrial Marketing, 22(6), 394–399. https://doi.org/10.1108/08858620710780154 DOI: https://doi.org/10.1108/08858620710780154
- Bian, X., & Moutinho, L. (2011). The Role of Brand Image, Product Involvement, and Knowledge in Explaining Consumer Purchase Behaviour of Counterfeits Direct and Indirect Effects. European Journal of Marketing, 45(1), 191–216. https://doi.org/10.1108/03090561111095658 DOI: https://doi.org/10.1108/03090561111095658
- Bilkey, W. j., & Nes, E. (1982). Country-of-origin effects on product evaluation. Journal of International Business Studies, 13(1), 89–99. https://doi.org/https://doi.org/10.1057/palgrave.jibs.8490539 DOI: https://doi.org/10.1057/palgrave.jibs.8490539
- Boisvert, J., & Ashill, N. J. (2011). How brand innovativeness and quality impact attitude toward new service line extensions: the moderating role of consumer involvement. Journal of Services Marketing, 25(7), 517–527. https://doi.org/10.1108/08876041111173642 DOI: https://doi.org/10.1108/08876041111173642
- Chen, Y. M., Su, Y. F., & Lin, F. J. (2011). Country-of-origin effects and antecedents of industrial brand equity. Journal of Business Research, 64(11), 1234–1238. https://doi.org/10.1016/j.jbusres.2011.06.029 DOI: https://doi.org/10.1016/j.jbusres.2011.06.029
- Desai, K. ., & Keller, K. L. (2002). The effects of ingredient branding strategies on host brand extendibility. Journal of Marketing, 66(1), 73–93. https://doi.org/https://doi.org/10.1509/jmkg.66.1.73.18450 DOI: https://doi.org/10.1509/jmkg.66.1.73.18450
- Erevelles, S., Stevenson, T. H., Srinivasan, S., & Fukawa, N. (2008). An analysis of B2B ingredient co-branding relationships. Industrial Marketing Management, 37, 940–952. https://doi.org/DOI: 10.1016/j.indmarman.2007.07.002 DOI: https://doi.org/10.1016/j.indmarman.2007.07.002
- Ferguson, J. L., Dadzie, K. Q., & Johnston, W. J. (2008). Country-of-origin effects in-service evaluation in emerging markets: some insights from five West African countries. Journal of Business & Industrial Marketing, 23(6), 429–437. https://doi.org/10.1108/08858620810894472 DOI: https://doi.org/10.1108/08858620810894472
- Ghosh, M., & John, G. (2009). When should original equipment manufacturers use branded component contracts with suppliers? Journal of Marketing Research, 46(5), 597–611. https://doi.org/https://doi.org/10.1509/jmkr.46.5.597 DOI: https://doi.org/10.1509/jmkr.46.5.597
- Giakoumaki, C., Avlonitis, G. J., & Baltas, G. (2015). Does ingredient advertising work? Some evidence on its impact. Journal of Business & Industrial Marketing, 30(1). Retrieved from https://www.emerald.com/insight/content/doi/10.1108/JBIM-02-2015-0027/full/html
- Hillyer, C., & Tikoo, S. (1995). Effect of cobranding on consumer product evaluations. Advances in Consumer Research, 22, 123–127.
- Hong, S., & Wyer, R. (1989). Effects of the country of origin and product attribute information-processing perspective. Journal of Consumer Research, 6, 148–158. Retrieved from https://www.jstor.org/stable/2489316
- Jayanti, W. A. & Iriani, S. S. (2019). What Attracts Guest to Stay? Brand Identity, Religiosity, and Reference Group towards Decision to Choose Sharia Hotel. Al Uqud: Journal of Islamic Economics, 4(1), 32-47. http://dx.doi.org/10.26740/al-uqud.v4n1.p32-47. DOI: https://doi.org/10.26740/al-uqud.v4n1.p32-47
- Kalafatis, S. P., Remizova, N., Riley, D., & Singh, J. (2012). The differential impact of brand equity on B2B coâ€branding. Journal of Business & Industrial Marketing, 27(8), 623–634. https://doi.org/DOI: 10.1108/08858621211273574 DOI: https://doi.org/10.1108/08858621211273574
- Kotler, P., & Pfoertsch, W. (2007). Being known or being one of many: the need for brand management for business-to-business (B2B) companies. Journal of Business & Industrial Marketing, 22(6), 357–362. https://doi.org/10.1108/08858620710780118 DOI: https://doi.org/10.1108/08858620710780118
- Kotler, P., & Pfoertsch, W. (2010). Ingredient Branding: Making the Invisible Visible. Springer. https://doi.org/10.1007/978-3-642-04214-0 DOI: https://doi.org/10.1007/978-3-642-04214-0
- Levin, A. J., Davis, C., & Levin, I. (1996). Theoretical and empirical linkages between consumers’ responses to different branding strategies. Advances in Consumer Research, 23, 296–300.
- Levin, I. P., & Levin, A. M. (2000). Modelling the role of brand alliances in the assimilation of product evaluations. Journal of Consumer Psychology, 9, 43–52. https://doi.org/https://doi.org/10.1207/s15327663jcp0901_4 DOI: https://doi.org/10.1207/s15327663jcp0901_4
- Li, W. K., & Wyer, R. S. J. (1994). The role of country of origin in product evaluations: informational and standard-of-comparison effects. Journal of Consumer Psychology, 3(2), 187–212. https://doi.org/10.1016/S1057-7408(08)80004-6 DOI: https://doi.org/10.1016/S1057-7408(08)80004-6
- Malär, L., Nyffenegger, B., Krohmer, H., & Hoyer, W. D. (2012). Implementing an intended brand personality: a dyadic perspective. Journal of the Academy of Marketing Science, 40(5), 728–744. https://doi.org/10.1007/s11747-011-0251-8 DOI: https://doi.org/10.1007/s11747-011-0251-8
- Nkwocha, I., Johnson, W. C., & Brotspies, H. V. (2005). Product Fit and Consumer Attitude toward Brand Extensions: The Moderating Role of Product Involvement. Journal of Marketing, 13(3), 49–61. https://doi.org/10.1080/10696679.2005.11658549 DOI: https://doi.org/10.1080/10696679.2005.11658549
- Norris, D. G. (1992). Ingredient Branding: A Strategy Option with Multiple Beneficiaries. Journal of Consumer Marketing, 9(3), 19–31. https://doi.org/10.1108/07363769210035206 DOI: https://doi.org/10.1108/07363769210035206
- Ponnam, A., S., S., & Balaji, M. (2015). Investigating the effects of product innovation and ingredient branding strategies on the brand equity of food products. British Food Journal, 117(2), 523–537. https://doi.org/10.1108/BFJ-12-2013-0376 DOI: https://doi.org/10.1108/BFJ-12-2013-0376
- Prince, M., & Davies, M. (2002). Co-branding partners: What do they see in each other? Business Horizons, 45 (Septem, 43−55. https://doi.org/10.1016/S0007-6813(02)00243-4 DOI: https://doi.org/10.1016/S0007-6813(02)00243-4
- Rahardjo B., Akbar Bintang M.B., Iskandar Y., Shalehah A. (2020). Analysis and strategy for improving Indonesian coffee competitiveness in the international market. BISMA (Bisnis dan Manajemen), 12(April), 140- 152. https://doi.org/10.26740/bisma.v12n2.p140-152 DOI: https://doi.org/10.26740/bisma.v12n2.p154-167
- Rao, A. R., Qu, L., & Ruekert, R. W. (1999). Signalling unobservable product quality through a brand ally. Journal of Marketing Research, 36, 258–268. https://doi.org/10.2307/3152097 DOI: https://doi.org/10.1177/002224379903600209
- Rao, A. R., & Ruekert, R. W. (1994). Brand alliances as signals of product quality. Sloan Management Review, 87–97.
- Rodrigue, C. S., & Biswas, A. (2004). Brand alliance dependency and exclusivity: an empirical investigation. Journal of Product & Brand Management, 13(7), 477–487. https://doi.org/10.1108/10610420410568417 DOI: https://doi.org/10.1108/10610420410568417
- Schooler, R. (1965). Product bias in the Central American common market. Journal of Marketing Research, 2(4), 394–397. https://doi.org/10.2307/3149486 DOI: https://doi.org/10.1177/002224376500200407
- Sherif, M., & Cantril, H. (1947). The Psychology of Ego Involvement. New York: Wiley.
- Shocker, A. D. (1995). Positive and Negative Effects of Brand Extension and Co-Branding. Advances in Consumer Research, 22, 432–434.
- Spethmann, B. and Benezra, K. (1994). Co-Brand or be Damned. Brandweek, 35(45), 20–24.
- Suryaningsih, I.B. (2020). Co-shopper and price moderation in the influence of tourist ethnocentrism and brand images on purchase intention. BISMA (Bisnis dan Manajemen), 12(April), 124-138. https://doi.org/10.26740/bisma.v12n2.p124-139 DOI: https://doi.org/10.26740/bisma.v12n2.p124-139
- Swaminathan, V., Reddy, S. K. S. K., & Dommer, S. L. (2012). Spillover effects of ingredient branded strategies on brand choice: a field study. Marketing Letters, 23(1), 237–251. https://doi.org/10.1007/s11002-011-9150-5 DOI: https://doi.org/10.1007/s11002-011-9150-5
- Tiwari, K., & Singh, R. (2012). Perceived impact of ingredient branding on host brand equity. Journal of Marketing & Management, 3(1), 60–77.
- Vaidyanathan, R., Aggarwal, R., & Brown, M. G. (1999). Intel inside, generic outside: implications of ingredient branding for national and private label brands. In the University of Minnesota-Duluth.
- Wu, J., & Fu, G. (2007). The effects of brand origin country and made-in country on consumers’ product evaluations and purchase intention. Frontiers of Business Research in China, 1(3), 333–350. https://doi.org/10.1007/s11782-007-0019-7 DOI: https://doi.org/10.1007/s11782-007-0019-7
References
Afriani, T. & Asandimitra, N. (2019). Determinants of Customer Preference to Save in Islamic Bank. Al-Uqud: Journal of Islamic Economics, 4(1), 1-17. http://dx.doi.org/10.26740/al-uqud.v4n1.p1-17. DOI: https://doi.org/10.26740/al-uqud.v4n1.p1-17
Ahmed, S., & D’Astous, A. (2008). Antecedents, moderators and dimensions of country-of-origin evaluations. International Marketing Review, 25(1), 75–106. https://doi.org/https://doi.org/10.1108/02651330810851890 DOI: https://doi.org/10.1108/02651330810851890
Ahmed, Z. U., Johnson, J. P., Yang, X., Kheng Fatt, C., Sack Teng, H., & Chee Boon, L. (2004). Does the country of origin matter for lowâ€involvement products? International Marketing Review, 21(1), 102–120. https://doi.org/10.1108/02651330410522925 DOI: https://doi.org/10.1108/02651330410522925
Barta, R., Feilmayr, C., Pröll, B., Grün, C., & Werthner, H. (2009). Covering the semantic space of tourism – an approach based on modularized ontologies. ACM International Conference Proceeding Series Proceedings of the 1st Workshop on Context. https://doi.org/10.1145/1552262.1552263 DOI: https://doi.org/10.1145/1552262.1552263
Beverland, M. B., Napoli, J., & Yakimova, R. (2007). Branding the business marketing offer: exploring brand attributes in business markets. Journal of Business & Industrial Marketing, 22(6), 394–399. https://doi.org/10.1108/08858620710780154 DOI: https://doi.org/10.1108/08858620710780154
Bian, X., & Moutinho, L. (2011). The Role of Brand Image, Product Involvement, and Knowledge in Explaining Consumer Purchase Behaviour of Counterfeits Direct and Indirect Effects. European Journal of Marketing, 45(1), 191–216. https://doi.org/10.1108/03090561111095658 DOI: https://doi.org/10.1108/03090561111095658
Bilkey, W. j., & Nes, E. (1982). Country-of-origin effects on product evaluation. Journal of International Business Studies, 13(1), 89–99. https://doi.org/https://doi.org/10.1057/palgrave.jibs.8490539 DOI: https://doi.org/10.1057/palgrave.jibs.8490539
Boisvert, J., & Ashill, N. J. (2011). How brand innovativeness and quality impact attitude toward new service line extensions: the moderating role of consumer involvement. Journal of Services Marketing, 25(7), 517–527. https://doi.org/10.1108/08876041111173642 DOI: https://doi.org/10.1108/08876041111173642
Chen, Y. M., Su, Y. F., & Lin, F. J. (2011). Country-of-origin effects and antecedents of industrial brand equity. Journal of Business Research, 64(11), 1234–1238. https://doi.org/10.1016/j.jbusres.2011.06.029 DOI: https://doi.org/10.1016/j.jbusres.2011.06.029
Desai, K. ., & Keller, K. L. (2002). The effects of ingredient branding strategies on host brand extendibility. Journal of Marketing, 66(1), 73–93. https://doi.org/https://doi.org/10.1509/jmkg.66.1.73.18450 DOI: https://doi.org/10.1509/jmkg.66.1.73.18450
Erevelles, S., Stevenson, T. H., Srinivasan, S., & Fukawa, N. (2008). An analysis of B2B ingredient co-branding relationships. Industrial Marketing Management, 37, 940–952. https://doi.org/DOI: 10.1016/j.indmarman.2007.07.002 DOI: https://doi.org/10.1016/j.indmarman.2007.07.002
Ferguson, J. L., Dadzie, K. Q., & Johnston, W. J. (2008). Country-of-origin effects in-service evaluation in emerging markets: some insights from five West African countries. Journal of Business & Industrial Marketing, 23(6), 429–437. https://doi.org/10.1108/08858620810894472 DOI: https://doi.org/10.1108/08858620810894472
Ghosh, M., & John, G. (2009). When should original equipment manufacturers use branded component contracts with suppliers? Journal of Marketing Research, 46(5), 597–611. https://doi.org/https://doi.org/10.1509/jmkr.46.5.597 DOI: https://doi.org/10.1509/jmkr.46.5.597
Giakoumaki, C., Avlonitis, G. J., & Baltas, G. (2015). Does ingredient advertising work? Some evidence on its impact. Journal of Business & Industrial Marketing, 30(1). Retrieved from https://www.emerald.com/insight/content/doi/10.1108/JBIM-02-2015-0027/full/html
Hillyer, C., & Tikoo, S. (1995). Effect of cobranding on consumer product evaluations. Advances in Consumer Research, 22, 123–127.
Hong, S., & Wyer, R. (1989). Effects of the country of origin and product attribute information-processing perspective. Journal of Consumer Research, 6, 148–158. Retrieved from https://www.jstor.org/stable/2489316
Jayanti, W. A. & Iriani, S. S. (2019). What Attracts Guest to Stay? Brand Identity, Religiosity, and Reference Group towards Decision to Choose Sharia Hotel. Al Uqud: Journal of Islamic Economics, 4(1), 32-47. http://dx.doi.org/10.26740/al-uqud.v4n1.p32-47. DOI: https://doi.org/10.26740/al-uqud.v4n1.p32-47
Kalafatis, S. P., Remizova, N., Riley, D., & Singh, J. (2012). The differential impact of brand equity on B2B coâ€branding. Journal of Business & Industrial Marketing, 27(8), 623–634. https://doi.org/DOI: 10.1108/08858621211273574 DOI: https://doi.org/10.1108/08858621211273574
Kotler, P., & Pfoertsch, W. (2007). Being known or being one of many: the need for brand management for business-to-business (B2B) companies. Journal of Business & Industrial Marketing, 22(6), 357–362. https://doi.org/10.1108/08858620710780118 DOI: https://doi.org/10.1108/08858620710780118
Kotler, P., & Pfoertsch, W. (2010). Ingredient Branding: Making the Invisible Visible. Springer. https://doi.org/10.1007/978-3-642-04214-0 DOI: https://doi.org/10.1007/978-3-642-04214-0
Levin, A. J., Davis, C., & Levin, I. (1996). Theoretical and empirical linkages between consumers’ responses to different branding strategies. Advances in Consumer Research, 23, 296–300.
Levin, I. P., & Levin, A. M. (2000). Modelling the role of brand alliances in the assimilation of product evaluations. Journal of Consumer Psychology, 9, 43–52. https://doi.org/https://doi.org/10.1207/s15327663jcp0901_4 DOI: https://doi.org/10.1207/s15327663jcp0901_4
Li, W. K., & Wyer, R. S. J. (1994). The role of country of origin in product evaluations: informational and standard-of-comparison effects. Journal of Consumer Psychology, 3(2), 187–212. https://doi.org/10.1016/S1057-7408(08)80004-6 DOI: https://doi.org/10.1016/S1057-7408(08)80004-6
Malär, L., Nyffenegger, B., Krohmer, H., & Hoyer, W. D. (2012). Implementing an intended brand personality: a dyadic perspective. Journal of the Academy of Marketing Science, 40(5), 728–744. https://doi.org/10.1007/s11747-011-0251-8 DOI: https://doi.org/10.1007/s11747-011-0251-8
Nkwocha, I., Johnson, W. C., & Brotspies, H. V. (2005). Product Fit and Consumer Attitude toward Brand Extensions: The Moderating Role of Product Involvement. Journal of Marketing, 13(3), 49–61. https://doi.org/10.1080/10696679.2005.11658549 DOI: https://doi.org/10.1080/10696679.2005.11658549
Norris, D. G. (1992). Ingredient Branding: A Strategy Option with Multiple Beneficiaries. Journal of Consumer Marketing, 9(3), 19–31. https://doi.org/10.1108/07363769210035206 DOI: https://doi.org/10.1108/07363769210035206
Ponnam, A., S., S., & Balaji, M. (2015). Investigating the effects of product innovation and ingredient branding strategies on the brand equity of food products. British Food Journal, 117(2), 523–537. https://doi.org/10.1108/BFJ-12-2013-0376 DOI: https://doi.org/10.1108/BFJ-12-2013-0376
Prince, M., & Davies, M. (2002). Co-branding partners: What do they see in each other? Business Horizons, 45 (Septem, 43−55. https://doi.org/10.1016/S0007-6813(02)00243-4 DOI: https://doi.org/10.1016/S0007-6813(02)00243-4
Rahardjo B., Akbar Bintang M.B., Iskandar Y., Shalehah A. (2020). Analysis and strategy for improving Indonesian coffee competitiveness in the international market. BISMA (Bisnis dan Manajemen), 12(April), 140- 152. https://doi.org/10.26740/bisma.v12n2.p140-152 DOI: https://doi.org/10.26740/bisma.v12n2.p154-167
Rao, A. R., Qu, L., & Ruekert, R. W. (1999). Signalling unobservable product quality through a brand ally. Journal of Marketing Research, 36, 258–268. https://doi.org/10.2307/3152097 DOI: https://doi.org/10.1177/002224379903600209
Rao, A. R., & Ruekert, R. W. (1994). Brand alliances as signals of product quality. Sloan Management Review, 87–97.
Rodrigue, C. S., & Biswas, A. (2004). Brand alliance dependency and exclusivity: an empirical investigation. Journal of Product & Brand Management, 13(7), 477–487. https://doi.org/10.1108/10610420410568417 DOI: https://doi.org/10.1108/10610420410568417
Schooler, R. (1965). Product bias in the Central American common market. Journal of Marketing Research, 2(4), 394–397. https://doi.org/10.2307/3149486 DOI: https://doi.org/10.1177/002224376500200407
Sherif, M., & Cantril, H. (1947). The Psychology of Ego Involvement. New York: Wiley.
Shocker, A. D. (1995). Positive and Negative Effects of Brand Extension and Co-Branding. Advances in Consumer Research, 22, 432–434.
Spethmann, B. and Benezra, K. (1994). Co-Brand or be Damned. Brandweek, 35(45), 20–24.
Suryaningsih, I.B. (2020). Co-shopper and price moderation in the influence of tourist ethnocentrism and brand images on purchase intention. BISMA (Bisnis dan Manajemen), 12(April), 124-138. https://doi.org/10.26740/bisma.v12n2.p124-139 DOI: https://doi.org/10.26740/bisma.v12n2.p124-139
Swaminathan, V., Reddy, S. K. S. K., & Dommer, S. L. (2012). Spillover effects of ingredient branded strategies on brand choice: a field study. Marketing Letters, 23(1), 237–251. https://doi.org/10.1007/s11002-011-9150-5 DOI: https://doi.org/10.1007/s11002-011-9150-5
Tiwari, K., & Singh, R. (2012). Perceived impact of ingredient branding on host brand equity. Journal of Marketing & Management, 3(1), 60–77.
Vaidyanathan, R., Aggarwal, R., & Brown, M. G. (1999). Intel inside, generic outside: implications of ingredient branding for national and private label brands. In the University of Minnesota-Duluth.
Wu, J., & Fu, G. (2007). The effects of brand origin country and made-in country on consumers’ product evaluations and purchase intention. Frontiers of Business Research in China, 1(3), 333–350. https://doi.org/10.1007/s11782-007-0019-7 DOI: https://doi.org/10.1007/s11782-007-0019-7