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Abstract

The current research aims to investigate various factors that influence consumers’ intention of buying foreign products. The data were collected by means of self-structured questionnaires from a total of 260 Bangladeshi consumers residing in the two major cities of the country, Dhaka and Chittagong. At the initial stage, statistical analyses, particularly descriptive analysis as well as exploratory factor analysis, were conducted using SPSS, after which structural equation modeling was run by using AMOS. The findings have established that brand image and quality of foreign products carry significant positive influence on purchase intention of foreign products. However, religiosity leaves a significant negative effect on the purchase intention of foreign products. Furthermore, findings have also revealed that the image of the country of origin carries a significant positive effect on brand image but ethnocentrism carries a significant negative effect on perceptions about the quality of foreign products in their purchase intention. The major contribution of the current study is that it focuses on Bangladesh, as there is a vacuum in contemporary literature on this topic in the context of Bangladeshi consumers. The findings derived from the study could facilitate marketers in the creation of effective marketing strategies and at the same time are also valuable for academicians as well as consumers at large.

Keywords

foreign products purchase intention image of country of origin brand image religiosity ethnocentrism product quality

Introduction

It has been argued that a competitive business environment and its rapid expansion beyond national boundaries has undoubtedly become a necessity for companies to succeed in the long run and expand their customer base (Aboulnasr, 2007). Such is the pressure to make their presence noticeable globally that many companies are inevitably spreading their wings beyond their national boundaries and expanding internationally. As a matter of fact, international expansion and distribution of products beyond national borders is a result of the emergence of two important phenomena, namely, globalization and the falling of trade barriers through the establishment of different kinds of international organizations and associations. At present, the globally connected marketplace and reviewing what influences consumers’ intention of purchasing foreign products have evolved as topics of much importance. Studies have been conducted in different regions of the world with the intention of understanding what actually affects consumers’ purchase intention of foreign products (Haque, Rahman, & Haque, 2011; Mostafa, 2010).

This is partly driven by the realization that consumers from different countries are distinct from each other not only culturally (Sohail & Sahin, 2010) but also economically and demographically (Essoussi & Merunka, 2007). Under such circumstances, studies conducted in the context of one country cannot be easily generalized in the context of another country (Sohail & Sahin, 2010). To understand which factors are affecting consumers’ intention of purchasing foreign products, it is important to conduct research in the context of different countries as consumers are unique in their spending preferences.

Available literature reveals that previous studies have been conducted in the context of different countries with the objective of identifying which factors affect consumers’ intention of buying foreign products: America (Shimp & Sharma, 1987; Yoo & Donthu, 2005); China, United States, and Taiwan (Lin & Chen, 2006); China and Japan (X. Wang & Yang, 2008; Wei, 2008); Egypt (Mostafa, 2010); United Kingdom (Diamantopoulos, Schlegelmilch, & Palihawadana, 2011); Iran (Fakharmanesh & Miyandehi, 2013); and Malaysia (Haque et al., 2011; Tabassi, Esmaeilzadeh, & Sambasivan, 2012). Even though much is known in academic literature regarding this topic in the context of different countries, there is a scarcity of research on this issue pertaining directly to Bangladesh. Thus, it is imperative that this study is conducted to gain insights into what influences Bangladeshi consumers’ intentions to purchase foreign products.

Literature Review

Purchase Intention

Traditionally, the term intention is defined as the antecedents that stimulate and drive consumers’ purchases of products and services (Hawkins & Mothersbaugh, 2010). One of the most common approaches undertaken by marketers in gaining an understanding about consumers’ actual behavior is through studying their intentions (Blackwell, Miniard, & Engel, 2006; Ghalandari & Norouzi, 2012). Kim and Pysarchik (2000) have demonstrated the existence of a strong correlation between these two respective constructs. Hence, they assert that purchase intention serves as an alternative for measuring consumers’ purchase behavior. Therefore, consumers’ intention toward a particular behavior has remained the central focus of well-known theories like theory of reasoned action (TRA).

This claim is also supported by Azjen (1991) who mention that intention is the factor that motivates consumers and in turn influences their behavior. To a greater extent, it reveals how hard consumers are willing to try, as well as the amount of effort they intend to exert for performing a respective behavior. According to them, the probability that a particular behavior will actually be performed by individuals largely relies on the strength of their intentions. When the intentions of performing certain behavior are strong, there are higher likelihoods that the respective behavior will be performed.

Image of the Country of Origin

Following the classic work by Schooler dating back to 1965, some 700 studies have been conducted in different parts of the globe by prominent researchers on the topic of country of origin (Essoussi & Merunka, 2007). The numerous studies conducted on country of origin have eventually made it an essential tool (Ryan, 2008) and indeed a phenomenon in the arena of international marketing and consumer behavior (Sohail & Sahin, 2010; Tigli, Pirtini, & Erdem, 2010). Therefore, country of origin has occupied an integral position in understanding consumers’ behavior in the literature of international marketing, specifically consumers’ preferences and purchases of foreign products (Kumara & Canhua, 2009; Zhang, 1996). Several researchers have noted that country of origin is the place where the corporate headquarters of the company a product or brand belongs to is located (Kim & Pysarchik, 2000; Thanasuta, Patoomsuwan, Chaimahawong, & Chiaravutthi, 2009; X. Wang & Yang, 2008). It has been mentioned by Laroche, Papadopoulos, Heslop, and Mourali (2005) that the importance of products’ origin has increased today due to trade liberalization among foreign countries and globalization of national economies. Thus, in their words, with the inception of the first-ever work on country of origin by Schooler, the study of product origin has turned into one of the most lucrative research areas in the arena of international marketing.

Koubaa (2008) has also stated that the image of the country from where a particular brand originates remarkably affects consumers’ perception of the brand’s image. From a similar perspective, it has been noted by Hsieh, Pan, and Setiono (2004) that when consumers hold a favorable perception toward a brand’s country of origin they appreciate brands from that particular country, which in turn enhances the brand’s image; on the contrary, a country’s negative image in the eyes of the consumers prevents them from purchasing its brands. Thus, consumers’ intention to purchase brands is in harmony with their impressions about the image of the products’ country of origin. It has been revealed that country of origin’s image directly affects consumers purchase intention (Josiassen & Assaf, 2010; X. Wang & Yang, 2008). However, other researchers such as Diamantopoulos et al. (2011) have shown that country of origin’s image affects consumers’ intention of buying foreign product through brand image. Based on the above discussion, the following hypotheses are drawn:

Hypothesis 1 (H1): Country of origin image has a significant positive effect on brand image.

Hypothesis 6 (H6): Brand image mediates the relationship between country of origin image and purchase intention.

Religiosity

Religion is one of the most vital elements in the lives of every individual (Khraim, 2010) because people from different religious backgrounds are obligated to follow the principles and beliefs prescribed by their respective religions (Rehman & Shabbir, 2010). Religion cannot be considered a mere short-lived fad that changes over time; rather, it is a permanent pillar that remains in the lives of believers forever (Khraim, 2010). As a matter of fact, religion is one of the most prominent aspects in society, influencing every aspect of a person’s life, lifestyle, attitude, belief, behavior, and habit (Hanzaee & Ramezani, 2011; Mokhlis, 2009). It provides people with a value system and, most importantly, gives them their identity (Essoo & Dibb, 2004). Religion is an important factor that guides peoples’ consumption habits and at the same time has an influential impact on their purchases of products as consumers from different religions are encouraged to abide by their religious principles in their selection of products (Essoo & Dibb, 2004). Even though religion affects individuals’ behavior and their consumption habits, it has been explained by Mukhtar and Butt (2012) that its impact varies from individual to individual in accordance to their religiosities.

Prior literature reveals that the construct of religiosity has been extended to studying consumers’ purchase intention of foreign products (Haque et al., 2011; Tabassi et al., 2012) and how religiosity is associated with consumers’ intention of purchasing products that come from foreign countries. The result of the study has revealed that as consumers’ religiosity increases, their intention of buying products coming from foreign countries decreases. Similar results have also been demonstrated by Tabassi et al. (2012). It has been revealed by them that consumers are unwilling to purchase products from foreign countries as religiosities of consumers are negatively associated with their intention of purchasing these products. Based on the above discussion, the following hypothesis is drawn:

Hypothesis 2 (H2): Religiosity has a significant negative effect on purchase intention of foreign products.

Ethnocentrism

The sociological concept of ethnocentrism’s origin can be traced back to the early 20th century, with the pioneering work of Sumner (1906). It is solely a social factor that revolves around the notion that individuals tend to perceive their own group (known as in-group) as superior (Sumner, 1906). As such, individuals who belong to the same group are considered in-groups and individuals who do not belong to the group are considered out-groups and are believed to be harmful to the in-group (Ueltschy, 1998). Thus, it has been stated by Chryssochoidis, Krystallis, and Perreas (2007) that the division of individuals into two distinct groups (in-group and out-group) makes ethnocentrism a concept that is dichotomous in nature.

Watson and Wright (2000) have investigated the effect of ethnocentrism on consumers’ attitude toward foreign products in the case where the local market does not provide a domestic substitute for particular product(s). The results of the study have shown that ethnocentric consumers favor products that come from neighboring nations that have similar cultural backgrounds. Consumer ethnocentrism also plays a role in the quality evaluation of foreign versus domestic products. Ethnocentric consumers tend to perceive the quality of local products as superior to the quality of foreign products (C. L. Wang & Chen, 2004). Similar statements have also been made by a number of past studies as their findings have revealed that ethnocentrism leads to an unfavorable effect on foreign products’ quality, and later, foreign products’ quality positively affects consumers’ intention of purchasing the products (Ettenson & Klein, 2005; Mostafa, 2010; Yoo & Donthu, 2005). Based on the above discussion, the following hypotheses are drawn:

Hypothesis 3 (H3): Ethnocentrism has a significant negative effect on quality of foreign products.

Hypothesis 7 (H7): Foreign product quality mediates the relationship between ethnocentrism and purchase intention.

Brand Image

In the study of marketing, branding has emerged as an integral concept (Meenaghan, 1995). Through the years, scholars have described the concept of branding in different ways (Meenaghan, 1995). Brand image is a result of the marketing activities that are undertaken by companies (Hsiung, 2011). Hawkins and Mothersbaugh (2010) have noted that brand image, in essence, is the thought that arises in peoples’ minds when they come across certain brands. In examining the effect of brand image on consumers’ loyalty toward brands, it has been stated by Hu, Jou, and Liu (2009) that brand image is comprised of three components, namely, the image of the product itself, followed by the corporation’s image, and finally the image of competitors’ brands. It has been concluded by them that for enhancing consumers’ loyalty toward a brand, it is important to improve the image of the product as well as the corporate image.

Yagci (2001) has found that brand image is a significant factor that not only plays an influential role in affecting consumers’ quality perception and attitude toward products but, at the same time, also plays an influential role in consumers’ purchases of products as it is a strong predictor of consumers’ purchase intention as well. On the reverse side, the opposite has been uncovered by Eze, Yee and Wamala (2012) as consumers did not form their intentions of purchasing products based on the image of the brand, indicating that brand name is not prioritized by consumers in making their purchases. Moreover, Shah et al. (2012) have studied how consumers’ purchase intentions are affected by the concept of branding. According to them, a product’s core brand image is comprised of two elements, namely, brand knowledge and brand preference, and both elements affected intention of purchasing as expected. In examining what factors affect Iranian consumers’ purchase intention of foreign products, it has been revealed by Fakharmanesh and Miyandehi (2013) that brand image is one of the important factors; thus, they have concluded that consumers rely on brand image when intending to purchase foreign products. Based on the above discussion, the following hypothesis is drawn:

Hypothesis 4 (H4): Brand image has a significant positive effect on purchase intention of foreign products.

Foreign Product Quality

Kirmani and Baumgartner (2000) have pointed that a product’s quality is the extrinsic and intrinsic cue that is taken into consideration by consumers in evaluating its performance. Consumers’ assessment of quality has also been considered an attitudinal judgment based on which consumers evaluate the extent to which brands fulfill their expectations (Rafi, Ali, Saqib, Choudhary, & Akhtar, 2012). C. L. Wang, Chen, Chan, and Zheng (2000) have pointed out that quality resembles the functional value of a product, which in turn motivates consumers in making their choices. It has been noted by C. L. Wang and Chen (2004) that Chinese consumers’ perception regarding the quality of products is an influential predictor of their purchase intention for both local and foreign products. Similarly, product quality is one of the elements highly taken into consideration by consumers from developing countries such as Pakistan when they purchase nonlocal products, as revealed by Khattak, Saeed, and Shah (2011). Prior study has shown that in the purchase of foreign products, ethnocentrism is an important factor that has the potential of affecting consumers’ perception toward foreign products’ quality; therefore, consumer ethnocentrism is an influential factor that is considered by consumers in evaluating the quality of foreign goods (Mostafa, 2010). Several past studies have taken into account the relationship between ethnocentrism and the quality of foreign products when it comes to understanding consumers’ intention of buying these products (Ettenson & Klein, 2005; Mostafa, 2010; Yoo & Donthu, 2005). In accordance with their findings, ethnocentrism has a negative effect on imported products’ quality and the latter leaves a positive effect on consumers’ intention of purchasing foreign products. Based on the above discussion, the following hypothesis is drawn:

Hypothesis 5 (H5): Quality of foreign products has a significant positive effect on purchase intention of foreign products.

Proposed Framework of the Research

As represented in Figure 1, the theoretical framework of the research concentrates on consumers’ purchase intention of foreign products based on the variables extracted from the literature review, namely, country of origin image, brand image, religiosity, ethnocentrism, and foreign product quality. The model links all these respective variables together in one frame and also illustrates how they are related to each other. From the figure below, it can be seen that the framework is comprised of one dependent variable (purchase intention), two mediating variables (brand image and foreign product quality), and three independent variables (country of origin image, religiosity, and ethnocentrism). In addition, it also reveals the basis on which the hypotheses have been derived.

Figure 1.

Framework of the research.

Method

As the study at hand upholds the objective of exploring the factors affecting consumers’ intention of buying foreign products, particularly concentrating on Bangladeshi consumers, it is essential to build the study by collecting data from the consumers of Bangladesh to make sure that the data collected are a good representation of the Bangladeshi population. The data required for the study have been gathered through the distribution of self-administered questionnaires. All the items were developed based on the literature review. Initially, the questionnaire was developed in English and later it was translated into Bengali with the help of a professional translator. The key reason for translating the questions into Bengali was to make it convenient for the respondents to understand as well as answer the questions appropriately. The items were then pretested on a sample of 38 respondents, including experts, to see whether the items were understandable to the respondents. Based on the feedback, a few items were rephrased and a few items were deleted from the final version of the questionnaire. For reliability analysis, Cronbach’s alpha test was carried out. An alpha value of .878 shows the high reliability of the questionnaire. Hence, the results of the study showed that the questions in the questionnaire were reliable and valid, which indicated that the questionnaire can be utilized for collecting data for the actual study.

As the study at hand upholds the objective of exploring the factors affecting consumers’ intention of buying foreign products, particularly concentrating on Bangladeshi consumers, it is essential to build the study by collecting data from the consumers of Bangladesh to make sure that the data collected are a good representation of the Bangladeshi population. A convenience sampling method has been employed to collect the required data from the two major cities of the country, Dhaka and Chittagong. The underlying reason for specifically selecting these two destinations rests on the fact that Dhaka and Chittagong are the main cities of the country. These two cities have innumerable shopping malls, with the widest variety and array of foreign (imported) products. Currently, there are 43 shopping malls in Dhaka city and 29 shopping malls in Chittagong city (Wikipedia, 2014). As such, this study has decided to cover 30% of the shopping malls, which were selected randomly, for data collection. Based on the ratio, 22 malls were selected from Dhaka city and 9 malls were selected from Chittagong city. Moreover, these two cities have the highest number of foreign products in the local market, as well as consumers who have the highest interaction with foreign products. One of the main advantages of convenience sampling method is that this specific method greatly helps researchers gather the required data from a sizable number of respondents in a relatively short span of time (Hair, Babin, Money, & Samouel, 2003; Hair, Bush, & Ortinau, 2009).

The respondents were requested to answer the questions on a 7-point rating scale, where 1 stands for strongly disagree and 7 stands for strongly agree. Initially, 260 questionnaires were given out to Bangladeshi consumers in different shopping malls in the cities of Dhaka and Chittagong. This is because this study has used structural equation modeling (SEM) for data analysis, where the minimum sample size required is 200 to conduct such analysis, as suggested by Hair et al. (2009). Moreover, Sekaran (2003) mentioned that the appropriate size of a sample for most of the research projects is a sample size that consists of more than 30 samples but is less than 500. Thus, in reference to this particular rule, the sample size of the study at hand is 260 (detailed data distribution is presented in Table 1). However, for the purpose of the study, 30 questionnaires were discarded, as they were not fully completed by the respondents, as a result of which 230 questionnaires were used for statistical analysis. Hence, this justifies the sample size used in this study as the sample size is more than 200.

Table 1.

Selected Malls and Questionnaire Distribution.

No	Name of the mall	Location	Collected sample
1	Jamuna Future Park	Dhaka	6
2	Bashundhara City	Dhaka	8
3	Eastern Plaza	Dhaka	7
4	Nahar Plaza	Dhaka	5
5	Mutalib Plaza	Dhaka	4
6	Karnafuly City Garden	Dhaka	10
7	Eastern Plus	Dhaka	14
8	Riffles Square	Dhaka	11
9	Twin City Corcord Shopping Complex	Dhaka	13
10	Rapa Plaza	Dhaka	9
11	Orchid Point	Dhaka	8
12	Alpona Plaza	Dhaka	9
13	Bishal Centre	Dhaka	7
14	Navana Shopping Center	Dhaka	6
15	Rajluxmi Complex	Dhaka	7
16	Rajmoni Ishakha Shopping Complex	Dhaka	9
17	Farmview Super Market	Dhaka	8
18	Mascot Plaza	Dhaka	5
19	Pink City	Dhaka	6
20	Dhaka City Corporation Market	Dhaka	9
21	DCC Market	Dhaka	8
22	North Tower	Dhaka	11
23	Basuda Plaza	Chittagong	15
24	New Market	Chittagong	12
25	Sanmar Ocean City	Chittagong	11
26	Central Plaza	Chittagong	7
27	Bangkok Singapore Market	Chittagong	11
28	Shah Amanat Shopping Center	Chittagong	7
29	Lucky Plaza	Chittagong	5
30	Younusco City Center	Chittagong	6
31	Apollo Shopping Center	Chittagong	6
Total		260

At the initial stage, descriptive analysis as well as validity testing through exploratory factor analysis (EFA) was conducted through SPSS. According to Hair et al. (2009), it is important to conduct EFA as it helps researchers in summarizing the information gathered from a particular set of data. Later, SEM was run through AMOS to test the measurement model and, finally, analysis was completed by testing the full-fledged structural model and verifying the hypotheses that have been derived for the study.

Results and Discussions

Respondents’ Demographic Profile

Of the participants, 63% were male while 37% were female. In the survey conducted, most of the participants were in the age group of 20 to 29 years, which is 44.8%. Another 23% of the participants were in the age group of 30 to 39 years while 13.5% were in the age group of 40 to 49 years. A total of 13% of the participants were below the age of 20. A small percentage of the participants were in the age group of 50 to 59 years (3.5%). The minority of the participants were in the age group of 60 to 69 years, which accounted for only 2.2% of the total participants. Most of the participants were Muslims, which accounted for 80.9%; 13.5% were Hindus, 3.5% were Buddhists, and 2.2% were Christians. In terms of academic qualification of the respondents, 35.7% had master’s degrees, 27.4 % had completed honors, 20.4% had completed high school, 13.9% had completed secondary school, and 5.8% of the participants had PhDs.

EFA

Hair et al. (2009) have mentioned that it is important to conduct factor analysis, as it helps researchers in summarizing the information gathered from a particular set of data. However, prior to proceeding with EFA, two tests, namely, Kaiser–Meyer–Olkin (KMO) and Bartlett’s Test of Sphericity, should be verified for checking the factorability of data (Pallant, 2007). Tabachnick, Fidell, and Osterlind (2001) have indicated that the value of the first test (KMO) ranges from 0 to 1, and for an appropriate analysis it is important to have at least a value of 0.6, and for the latter (Bartlett’s Test of Sphericity) it is important to attain a significant p value (p < .05). After running both of these respective tests through SPSS, it was observed that the results of both fell within the acceptable range, indicating that the researcher can run EFA. The outcomes of the tests are shown below in Table 2.

Table 2.

Kaiser–Meyer–Olkin and Bartlett’s Test of Sphericity.

Kaiser–Meyer–Olkin Measure of Sampling Adequacy	.875
Bartlett’s Test of Sphericity
Approximate χ²	3.754E3
df	378
p	.000

From EFA, 20 items have been derived and all the items are considered to be significant as they managed to load with a value greater than 0.50, and any loading above this value is considered to be practically significant by Hair et al. (2009). All the five respective components successfully attained eigenvalues higher than one, as recommended by Pallant (2007); in total, all the five components together explained 64.696% of the total variance (Table 3). Cronbach’s alpha has also been calculated for all the items of the five variables. It can be seen that all items under each of the variables are reliable as they all have surpassed the minimum value of .60 suggested by Hair, Black, Babin, and Anderson (2010).

Table 3.

Results of Exploratory Factor Analysis (EFA).

Item	(F1) ENα = .904	(F2) CIα = .868	(F3) BIα = .861	(F4) FPα = .874	(F5) RLα = .879
CI1 Technological advancement		.753
CI2 Good designing		.558
CI3 Economic development		.827
CI4 Workmanship		.576
BI1 Good image			.752
BI2 Innovative image			.698
BI3 Exclusive image			.805
BI4 Reputable image			.630
EN1 Should always buy Bangladeshi products	.800
EN2 Should import only products that are unavailable in Bangladesh	.836
EN3 Bangladeshi products first, last and forever	.820
EN4 Bangladeshis should support Bangladeshi products	.753
FP1 Good quality				.549
FP2 Superior to domestic products				.778
FP3 Reliable				.775
FP4 Good value for money				.606
RL1 Religious beliefs					.827
RL2 Religious obligations					.756
RL3 Religious programs					.803
RL4 Religious books and magazines					.692

Note. Extraction method: Principal component analysis. EN = ethnocentrism; CI = country image; BI = brand image; FP = foreign product; RL = religiosity.

Fitness Assessment of the Structural Model

For gauging the fitness of a particular model to a set of data, it is obligatory for researchers to employ several goodness-of-fit statistics (Brown, 2006). All the fit indices that are used for assessing a model’s fitness fall generally under three different respective categories of fitness, which are commonly known as absolute fit, incremental fit, and parsimonious fit (Brown, 2006; Byrne, 2010; Hair et al., 2010; Kline, 2011). Each of the categories is comprised of a number of different types of indices as well as their required values (Table 4).

Table 4.

Goodness of Fit Indices.

Name of category	Indices	Required value	Comments
Absolute fit	χ²	p > .05	Sample size > 200
	RMSEA^a	<0.08	Acceptable range 0.5 to 0.10
	GFI^a	>0.90	>0.95 indicates a good fit
Incremental fit	AGFI	>0.90	>0.95 indicates a good fit
	CFI^a	>0.90	>0.95 indicates a good fit
	TLI	>0.90	>0.95 indicates a good fit
	NFI	>0.90	>0.95 indicates a good fit
Parsimonious fit	χ²/df ^a (normed χ²)	<3-5	<3 indicates a good fit

Note. RMSEA = root mean square error approximation; GFI = goodness-of-fit index; AGFI = adjusted goodness-of-fit index; CFI = comparative fit index; TLI = Tucker–Lewis index; NFI = normed fit index.

These indices are recommended as these are highly reported in the literature (Zainudin, 2012).

Evaluation of the Structural Equation Model

The result of the model revealed that the model is acceptable as it attained the required values for each of the indices as follows: root mean square error approximation (RMSEA) = .074, goodness-of-fit index (GFI) = .908, comparative fit index (CFI) = .908. normed χ² = 2.263 (Table 5, Figure 2).

Table 5.

Fitness Assessment of the Structural Model.

Name of category	Required value	Obtained value	Comments
Absolute fit	RMSEA ≤ 0.08	0.074	The required level is attained
Absolute fit	GFI ≥ 0.90	0.908	The required level is attained
Incremental fit	CFI ≥ 0.90	0.908	The required level is attained
Parsimonious fit	χ²/df ≤ 3	2.263	The required level is attained

Source. Byrne (2010); Hair, Black, Babin, and Anderson (2010); Kline (2011); Sarwar (2013); Zainudin (2012).

Note. RMSEA = root mean square error approximation; GFI = goodness-of-fit index; CFI = comparative fit index.

Figure 2.

Full-fledged structural model for intention of purchase foreign product.

Results of Hypothesis Testing

As shown in Table 6, it can be observed that all the five hypothesized paths were significant at a p value < .05. Country of origin image has a significant positive effect on brand image in Bangladeshi consumers’ intention of purchasing foreign products, indicating that H1 is accepted as the standardized regression weight = .587, standard error = .083, critical ratio = 7.037, level of significance for regression weight = significant at .000. H2 of the study has also been accepted, demonstrating that religiosity has a significant negative effect on Bangladeshi consumers’ purchase intention of foreign products as the standardized regression weight = −.236, standard error = .106, critical ratio = −2.225, and level of significance for regression weight = .026. H3 was not rejected as the estimates of the structural path demonstrated that standardized regression weight = −.186, standard error =.065, critical ratio = −2.884, level of significance for regression weight = .004. Therefore, it can be stated that in the case of Bangladeshi consumers, ethnocentrism does carry a negative effect on the quality of foreign product. H4 was also not rejected as the standardized regression weight = .367, standard error = .116, critical ratio = 3.167, and level of significance for regression weight = .002. Therefore, brand image is highly taken into account by Bangladeshi consumers during the purchase of imported products. Last, the quality factor of foreign products also plays a significant role when Bangladeshi consumers are buying foreign products as indicated by the structural path, with standardized regression weight = .531, standard error =.120, critical ratio = 4.412, and level of significance for regression weight = significant at p value 000. Therefore, H5 was also accepted.

Table 6.

Results of Hypothesis Testing.

Structural path			Estimate	SE	CR	p
Brand image	←	Country of origin image	.587	.083	7.037	***
Purchase intention	←	Religiosity	−.236	.106	−2.225	.026
Purchase intention	←	Brand image	.367	.116	3.167	.002
Foreign product quality	←	Ethnocentrism	−.186	.065	−2.884	.004
Purchase intention	←	Foreign product quality	.531	.120	4.412	***

Note. CR = critical ratio.

Validity testing

Besides the baseline model, the study needs to consider the overall measurement model to test the validity of the analysis. To confirm construct validity of the study, it requires to assess convergent, discriminant, and face validity. Most of the factor loadings for each construct (more than .70), average variance extracted (AVE; more than .50), and construct reliability (more than .50) show the presence of convergent validity, while discriminant validity is confirmed with the positive difference between AVE and squared correlation (r²) of the constructs. Here, in all cases AVE is bigger than squared multiple correlation value and gives the evidence of uniqueness for each construct. In addition, theoretical support of the literature proves the face validity of the constructs (see Table 7).

Table 7.

Validity Testing.

Construct	Cronbach’s α	CR	AVE
Ethnocentrism	.858	6.898	0.674
Country of origin image	.825	5.539	0.535
Brand image	.763	6.664	0.515
Foreign product	.838	5.129	0.556
Religiosity	.771	6.270	0.532
Purchase intention	.860	5.759	0.638

Note. CR = critical ratio; AVE = average variance extracted.

Testing mediation effect

In addition to the five basic hypotheses, the study also tends to test the mediation effect of brand image and foreign product quality between country of origin and purchase intention, as well as ethnocentrism and purchase intention, respectively. In confirming the mediating effect of brand image, both the path coefficients of country of origin to brand image and brand image to purchase intention should be multiplied, whereas the multiplication value should be greater equal or greater than the threshold value (.08). In addition, p of these effects should be significant (Rucker, Preacher, Tormala & Petty, 2011). For the case at hand, in seeking practical importance, the multiple effects of both these relationships (.59 × .28 = .16) is greater than the threshold value (.08) and Sobel’s test also shows the significant p value, which demonstrates the statistical significance.

In the same manner, to demonstrate the mediation effect of foreign products’ quality, both the path coefficients of ethnocentrism to foreign products’ quality and foreign products’ quality to purchase intention should be multiplied, whereas the multiplication value should be greater than .08. In addition, p of these effects should be significant (Rucker et al., 2011). For the case at hand, in seeking practical importance, the multiple effects of both these relationships are very close to the threshold value (.08). Likewise, Sobel’s test also shows the significant p value, which demonstrates the statistical significance. Hence, it can be said that H6 and H7 are not rejected and brand image as well foreign products quality is the mediator in the given relationship stated in the hypothesis.

Conclusion and Marketing Implementations

The results of the research have demonstrated that country of origin image does carry a significant positive effect on brand image when it comes to Bangladeshi consumers’ intention of buying foreign products. Therefore, it is advised that marketers incorporate and emphasize the favorable match between country of origin image and brand image in the various marketing activities undertaken. However, in the event a certain brand is affiliated with a less favorable image then it would be a good decision for marketers to concentrate on other product attributes when advertising as well as promoting the products. In addition, another factor that carries a favorable effect on Bangladeshi consumers’ intention of buying foreign products is brand image. Henceforth, to sell their products in this particular market, it is advised that marketers should work toward creating favorable images of their brands. Under such circumstances, it has been mentioned by Belch and Belch (2012) that one of the most popular means of improving brand image is through image advertising. At the same time, the findings have also unveiled that Bangladeshi consumers pay much attention to the quality of foreign products. In the future, initiatives must be taken by marketers for informing the consumers about the superior quality of their products through advertisements.

The results of the study have also indicated that ethnocentrism is unfavorably associated with foreign product quality when it comes to Bangladeshi consumers’ intention of buying imported products. Cateora and Graham (2007) have advised that “localisation” is one of the most common ways that can be undertaken by marketers to combat the negative effect of ethnocentrism. Therefore, marketers must try to give local appeal to the foreign products by associating them with local celebrities in advertisements, as well as creating joint ventures with local firms.

Finally, the findings have shown that religiosity also carries a negative effect on intention of purchasing foreign products. Therefore, to remain successful in the Bangladeshi market, it is vital for marketers to take into consideration and be thoughtful toward consumers’ religious beliefs when developing their marketing strategies and activities.

From a managerial perspective, this indicates that it is vital for marketers to tailor different strategies for consumers from different countries. This will assist marketers in crafting meaningful marketing strategies that will enable them to appropriately position as well as sell foreign products, particularly in the Bangladeshi market. Besides, in the context of Bangladesh, it is also recommended that marketers should create favorable images of their brands in the minds of the consumers to augment the impact on their intention of purchasing foreign products. Thus, in their marketing programs marketers must give special attention toward informing consumers about the superior quality of their products.

Limitations and Future Research

The main limitation of this study is that it strictly concentrates on Bangladeshi consumers; therefore, its findings cannot be generalized to consumers from other countries. Hence, it is highly recommended that in the future the generalizability of the results of the current study is tested by studying the proposed model in the setting of a new country where it has not been studied yet and with a larger sample size. Besides, the current study has studied consumers’ intention of purchasing foreign products in general; it did not focus on any particular category of products. In the future, researchers can study this phenomenon by taking into account specific product category. Moreover, as the proposed model of the current research stops at purchase intention, the researcher greatly encourages future researchers to extend the proposed framework by adding actual purchase behavior to the framework, along with other new mediating and moderating variables.

Footnotes

Declaration of Conflicting Interests

The author(s) declared no potential conflicts of interest with respect to the research,authorship,and/or publication of this article.

Funding

The author(s) received no financial support for the research and/or authorship of this article.

Author Biographies

Ahasanul Haque is the professor of Marketing at the Faculty of Economics and Management Sciences,International Islamic University Malaysia (IIUM). He has more than 80 international publications in the field of marketing and management.

Naila Anwar has obtained her MBA in Marketing from International Islamic University Malaysia (IIUM). Her research interest covers service marketing,consumer behavior,service quality.

Farzana Yasmin is a lecturer of Marketing at the Faculty of Business Administration,Management and Science University (MSU). She has more than 20 international publications in the field of marketing.

Abdullah Sarwar is a lecturer of Marketing at the Faculty of Management,Multimedia University (MMU),Cyberjaya campus,Malaysia. He has more than 30 international publications in the field of marketing and management. His research interest covers tourism marketing,consumer behavior and service marketing.

Zariyah Ibrahim has obtained her MBA in Marketing from International Islamic University Malaysia (IIUM). Her research interest covers consumer behavior and service marketing.

Abdul Momen is a Ph.D candidate at the Faculty of Economics and Management Sciences,International Islamic University Malaysia (IIUM).

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Purchase Intention of Foreign Products

Abstract

Keywords

Introduction

Literature Review

Purchase Intention

Image of the Country of Origin

Religiosity

Ethnocentrism

Brand Image

Foreign Product Quality

Proposed Framework of the Research

Method

Results and Discussions

Respondents’ Demographic Profile

EFA

Fitness Assessment of the Structural Model

Evaluation of the Structural Equation Model

Results of Hypothesis Testing

Validity testing

Testing mediation effect

Conclusion and Marketing Implementations

Limitations and Future Research

Footnotes

Declaration of Conflicting Interests

Funding

Author Biographies

References