Buying Local or Imported Goods? Profiling Non-income Consumers in Developing Countries

Abu H. Ayob, Wan Mohd Hirwani Wan Hussain

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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.
    Original languageEnglish
    JournalInternational Review of Management and Marketing
    Volume6
    Issue number4
    Pages (from-to)688-695
    Number of pages8
    ISSN2146-4405
    Publication statusPublished - 2016

    Keywords

    • Local products
    • Imported products

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