Failure Of Uppsala’s Model Due toEthnocentrism, Animosity And Country ofOrigin Image

ISMI RAJIANI

Universiti Teknikal Malaysia Melaka

Uppsala model

“psychic distance” companies expand

first to market which is psychically close

move further as their knowledge well-

developed

Uppsala model for Indonesia

culture language, religious customs

close distance

Malaysia as

potential market

Indonesia vs. Malaysia Long-

running spats from territorial

boundaries to cultural ownership

creating tension

between the two

neighboring countries

negatively affect the intention

to buy Indonesia product sold in

Malaysia

“Buy Malaysian Product”

campaign

patriotism aimed at getting Malaysians to love, buy and

used local products

Theoretical Framework

Country of Origin Image

Animosity

Ethnoce-ntrism

Unwillingness to

Buy

Variables Definition

COI : buyer’s attitudes and feelings toward the country , developed through contact, association, or past experience with the country, its people, and its products (Sahin, 2010).

Animosity: the remnants of antipathy related to previous or ongoing military, political, or economic events"(Klein et al, 1998).

Ethnocentrism: believe that buying a foreign product or foreign brand is not patriotic, and they tend to choose local products or local brands, regardless price or quality considerations (Shankarmahesh, 2006).

Methodology

• conducted in Melacca, Malaysia. • convenience sampling method, 150 respondents purchasing

various foods in supermarket with a-5-scale- Likert Scale, • Structural Equation Modeling (SEM) • Country of Origin six questions and Willingness to Buy

was measured by five questions developed by Nakos & Hajidimitriou (2007).

• Consumer Ethnocentrism :six statements, Consumer Animosity :four questions inquiring of Malaysian consumers’ feelings towards Indonesia and Indonesian people developed by Klein, Ettenson and Morris (1998).

Conclusion

• The overall results show that country of origin, animosity and consumer ethnocentrism significantly affect the willingness to purchase Indonesian products among Malaysian

• We find that country of origin the most strongly influences consumer product evaluations

Conclusion

• The findings on animosity and consumer ethnocentrism coincide with previous research that had found that consumers in China (Klein, Ettenson and Morris, 1998; Ishii, 2009), the United States (Klein, 2002), Greek (Nakos & Hajidimitriou, 2007) and Indonesia (Ramadania, Gunawan, Astuti, 2011)

Conclusion

In other words, Klein’s animosity model holds true for

Indonesian products sold in Malaysia

Conclusion

The Uppsala model concept of psychic distance by preference to start exportation to neighboring countries seems to apply also for Indonesian companies and they see Malaysia as the most attractive market.

Conclusion

However, due to the flux of up and down of the relationship of the two countries, the concept seems need more elaboration by

particular reference to Ethnocentrism, Animosity and Country of Origin Image

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