This study investigated the effects of brand origin confusion (BOC)
on consumers preference and consumers purchase likelihood of local versus
foreign brands in Indonesia. Come up from country-of-origin (COO) literatures
and brand origin recognition accuracy, this study would like to confirm whether
there are significant effects of BOC to brand preference and purchase likelihood.
It intended to describe whether BOC really affected brand preference and
purchase likelihood in developing markets, such as Indonesia.
Pilot study was conducted and 24 brands (12 local and 12 foreign)
which exist in Indonesia were selected. One hundred and fifty respondents
evaluated some variables such as brand origin, brand knowledge, brand preference,
and brand purchase likelihood. For the data analysis, simple and multiple
regressions were conducted.
The result of this study mostly supported the hypotheses.
Specifically, the results showed that in a high level of BOC, local brands are
likely to have advantage and foreign brands are likely to have disadvantage.
Meanwhile, brand knowledge was not found to have moderating role of BOC
effect to brand preference.