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Thesis Impact of Country of Origin On Consumer Purchase Intention For Japanese Cosmetics
Thesis Impact of Country of Origin On Consumer Purchase Intention For Japanese Cosmetics
I
ACKNOWLEDGEMENT
First of all, we would like to express our sincere thanks to the Board of Directors and
teachers of Can Tho FPT University for creating favorable conditions, imparting knowledge,
providing our group great supports during study and research process.
In particular, we would like to express our deep respect and gratitude to Ph.D. Minh Sang,
who directly guided and enthusiastically supported our group throughout the research
process to complete this thesis. Being guided by him is an honor and a good opportunity for
us to learn and practice both in terms of professional knowledge and working spirit.
Besides, with deep affection and sincerity, we would like to show our gratitude to all
individuals who helped us in implementing survey for data collection process and gave us
many beneficially constructive suggestions for this research.
Finally, our group would like to thank our family, relatives and friends who have always
been by our side, supporting and encouraging us to complete this thesis.
Due to limited theoretical knowledge and practical experience in the field of research, the
thesis inevitably has many limitations and shortcomings. Our group is looking forward to
receiving comments and advice from teachers and classmates so that we can learn more
experiences and improve this thesis better.
Wish all the best will come to everyone!
ii
DECLARATION
Our group declare that the data and research results in this thesis titled “Impact of country
of origin on consumer purchase intention for Japanese cosmetics” are valid and have never
been used to defend any degree or diploma. All supports for the preparation of this thesis
have been thanked and the information cited in the thesis has been clearly identified and
published.
iii
TABLE OF CONTENTS
Page
EXECUTIVE SUMMARY ....................................................................................................I
DECLARATION ................................................................................................................. III
TABLE OF FIGURES .........................................................................................................VI
TABLE OF TABLES ........................................................................................................ VII
CHAPTER 1: INTRODUCTION .......................................................................................... 1
1. Introduction ................................................................................................................. 1
2. Research objectives and questions .............................................................................. 2
3. Research scope ............................................................................................................ 2
4. Methodology and Data overview ................................................................................ 3
5. Aims of research ............................................................................................................ 3
6. Thesis outline ................................................................................................................. 3
CHAPTER 2: LITERATURE REVIEW AND THEORETICAL MODELS ....................... 4
1. Literature Review ........................................................................................................... 4
1.1. Purchase intention ............................................................................................... 4
1.2. Consumer Ethnocentrism .................................................................................... 4
1.3. Consumer attitude ................................................................................................ 5
1.4. The country of origin ........................................................................................... 6
1.4.1. Country Image ................................................................................................. 7
1.4.2. Brand associations ........................................................................................... 8
1.4.3. Perceived quality.............................................................................................. 8
2. Theoretical Framework ............................................................................................... 9
CHAPTER 3: METHODOLOGY ....................................................................................... 12
1. Research methodology and research approach ......................................................... 12
1.1. Research Methodology .......................................................................................... 12
1.2. Research approach ................................................................................................. 12
2. Research design ........................................................................................................ 12
3. Samples (Target sample, sampling design) .............................................................. 13
4. Data collection procedures........................................................................................ 13
5. Data analysis methods .............................................................................................. 14
CHAPTER 4: ANALYSES AND FINDINGS .................................................................... 17
1. The sample structure ................................................................................................. 17
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2. Describe using behavior for Japanese cosmetics ...................................................... 18
3. Impact of country of origin on consumer purchase intention ................................... 21
3.1. Impact of country of brand origin on consumer purchase intention ................. 21
3.2. Impact of country of manufacture origin on consumer purchase intention ....... 26
4. The influence of difference in demographic on variables ............................................ 31
4.1. Differences in demographic affect Consumer ethnocentrism ............................... 31
4.2. Differences in demographic affect Consumer attitude towards COB ................... 32
4.3. Differences in demographic affect Country of origin ........................................... 32
4.3.1. Differences in demographic affect Perceived country image ............................. 32
4.3.2. Differences in demographic affect Perceived brand quality .............................. 33
4.3.3 Differences in demographic affect Perceived brand association ......................... 33
4.4. Differences in demographic affect Purchase intention .......................................... 34
CHAPTER 5: CONCLUSION AND RECOMMENDATIONS ......................................... 37
1. Theoretical Contribution ........................................................................................... 37
2. Recommendations ..................................................................................................... 38
3. Limitations and further research ............................................................................... 39
REFERENCES: ................................................................................................................... 41
APPENDIX .......................................................................................................................... 49
I. Appendix 1 ................................................................................................................ 49
II. Appendix 2 ................................................................................................................ 56
III. Appendix 3 ................................................................................................................ 61
IV. Accepted letter of The 8th International Conference on Marketing and Retailing.... 62
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TABLE OF FIGURES
Figure 1. Theoretical model ................................................................................................... 9
Figure 2. The relationship between gender and types of cosmetic ...................................... 20
Figure 3. Correlation analysis result .................................................................................... 25
Figure 4. Correlation analysis result (COM) ....................................................................... 29
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TABLE OF TABLES
Table 1. Scale of components ................................................................................................ 9
Table 2. The sample structure .............................................................................................. 17
Table 3. Knowing about Japan ............................................................................................ 18
Table 4. Knowing about Japanese cosmetic product ........................................................... 19
Table 5. Purchase intention (PIN)........................................................................................ 20
Table 6. Cronbach alpha test results on scales of the dependent variables (AOB) ............. 22
Table 7. The results of testing the hypotheses in theoretical model (AOB) ........................ 24
Table 8. Cronbach alpha test results on scales of the dependent variables (AOM) ............ 27
Table 9. The results of testing the hypotheses in theoretical model (AOM) ....................... 28
Table 10. Differences in Gender, Age, Education and Marital status affect CE ................. 31
Table 11. Differences in Family income affect AOB .......................................................... 32
Table 12. Differences in Gender affect PCI ........................................................................ 33
Table 13. Differences in Age and Marital status affect PQB and PQM .............................. 33
Table 14. Differences in Age and Marital status affect PAB and PAM .............................. 34
Table 15. Differences in Gender, Age and Marital status affect PIN .................................. 35
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CHAPTER 1: INTRODUCTION
1. Introduction
Today, country of origin serves as a standard by which consumers rely on national
prejudice and experience with products from that country to make inferences about quality,
performance and other product attributes. The country of origin can indicate the product's
quality, reputation and popularity, thereby reducing risks or, in other words, increasing
consumer trust in the purchasing decision-making process. Accordingly, companies from
certain countries can get benefits from the reputation, positive image of the place of origin.
Meanwhile, startups from emerging economies may face negative impacts, or at least
compete with the economies that have more positive effects on product origin. Besides, when
the label of origin has become mandatory, customers' attitude towards the country of origin
has been becoming one of the most influential variables, both positively and negatively, on
consumer perception about the value, quality of a product's features and their purchasing
behavior.
Due to the development of the economy, people's income is increasingly improved, the
need for self-care is increasing, Vietnam becomes one of the potential markets to attract
many foreign cosmetic brands entry, increase the competitive dynamics and promote the
development of the cosmetic industry. In particular, Japanese cosmetic products are very
popular and occupy a large market share in the cosmetics industry. When it comes to the
influence of the the country-of-origin on consumer decisions, cosmetics is an industry that
is greatly influenced by the country of origin. The country of Japan was the primary focus
of this research. Japan is known as a developed country and Japanese products have a
positive image in the eyes of Vietnamese people. The superb quality and diversity of
Japanese cosmetics make them extremely popular in Vietnam. Furthermore, the price is
within the range of most cosmetic users' income so the Vietnamese people place a high value
on it. As a result, it is becoming increasingly important to understand and research the effects
of country of origin on customer propensity to purchase Japanese cosmetics.
Around the world, there are currently many studies on the correlation between origin
and brand value factors and consumer behavior, typically as studies show: When making
product reviews and purchasing decisions, consumers frequently use the COO as an extrinsic
information cue (Papadopoulos & Heslop, 2002; Balabanis & Diamantopulos, 2004; Kwok,
Uncles & Huang, 2006). Since COO labeling became mandatory, consumer awareness and
1
perceptions of COOs have grown; As part of their purchasing decision and evaluation
process, consumers consider the origin of specific products. (Klein, Ettenson & Morris, 1998;
Bandyopadhyay & Banerjee, 2002). Numerous studies are dispensed in several country
contexts with the aim of identifying the factodrs that influence consumer reviews and
purchasing decisions based on their COOs (Shimp & Sharma, 1987; Bailey & Pineres, 1997;
Kaynak et al., 2000; Sin, Ho and So, 2000; Lin & Chen, 2006; Ghazali et al., 2008; Wang &
Yang, 2008; Mostafa, 2010; Dagger & Raciti, 2011; Diamantopoulos, Schlegelmilch, &
Palihawadana, 2011; Bamber, Phadke & Jyothishi, 2012; Tabassi, Esmaeilzadeh, &
Sambasivan, 2012; Haque et al., 2015; Kala & Chaubey, 2016.). In Vietnam, the research of
the effect of country of origin on consumer buying intention on Korean cosmetics in Da
Nang showed that there is a positive relationship between the the image of the Korean nation,
the Korean cosmetic industry's assessment, the Korean people image and the belief to
attitude. And for Korean cosmetics, attitude has the strongest impact on buying intentions of
consumers (Quyen, 2015).
However, there are not many studies directly mentioning the impact of country-of-origin
on consumer’s intention to purchase Japanese cosmetics. Therefore, this research paper will
conduct research, analysis and research on this topic.
3. Research scope
The object of the study is consumers who know and have used Japanese cosmetic
products at the age of 16 to over 30. The study focuses on the impact of country-of-origin,
including country of brand and country of manufacture on consumer's intention to purchase
2
Japanese cosmetics and proposing solutions in order to promote people's decision to use
Japanese cosmetics.
5. Aims of research
Research results help Japanese cosmetic brands identify target customer segments and
propose solutions to support penetration and expansion plans in Vietnam. Propose solutions
to improve the perception of Vietnam's national image in the eyes of consumers and offer
appropriate production and marketing programs and policies for domestic cosmetic
manufacturing and trading enterprises.
6. Thesis outline
Chapter 1: INTRODUCTION
Chapter 2: LITERATURE REVIEW AND THEORETICAL MODELS
Chapter 3: METHODOLOGY
Chapter 4: ANALYSIS AND FINDINGS
Chapter 5: CONCLUSION AND RECOMMENDATION
3
CHAPTER 2: LITERATURE REVIEW AND THEORETICAL
MODELS
This chapter is going to clarify the theories related to country of origin, purchase intention
and other components affect consumer purchase intention for Japanese cosmetic. Since,
theoretical model for this is proposed and component scales for this research is formed.
1. Literature Review
1.1. Purchase intention
According to Kotler & Keller (2016), a purchase intention is a form of consumer
behavior that wants to buy or choose a product based on their experience, use and desire for
a product. Purchase intention is the willingness of a customer to buy a certain product or a
certain service. Purchase intention is a dependent variable that depends on several external
and internal factors. According to Madahi & Sukati (2012), purchase intention refers to a
consumer's desire to buy a product or service because he or she believes that he or she
requires it, as well as a consumer's attitude towards the product and perception of it. In other
words, purchase intention refers to the likelihood that a consumer will buy a product again
after evaluating it and determining that it is worthwhile. While consumers may choose a
specific product, their final decision to accept or reject that product is based on their intent.
Also, a large number of external factors have been recognized, which can affect purchase
intention (Keller & Kevin L. 2001). Purchase intentions are a measurement of a respondent's
willingness to buy a product or use a service based on purchase intention scales Wright, M.,
& MacRae, M. (2007). In this study, country of origin (including perceived country image,
brand association and brand quality) is expected to affect consumer purchase intention. In
addition, this study also considers the impact of consumer ethnocentrism, customer attitude
on purchase intention.
1.2. Consumer Ethnocentrism
The concept of ethnocentrism “represents the universal proclivity for people to view
their own group as the center of the universe, to interpret other social units from the
perspective of their own group and to reject persons who are culturally dissimilar while
blindly accepting those who are culturally like themselves” (Shimp and Sharma, 1987, p.
280). According to Wall and Heslop (1986), consumers in developed countries give
preference to domestic products, products from other developed countries and the last is
products from less developed countries. It can lead to the conclusion that consumers with
highly expressed ethnocentrism take into account seriously COO, when choosing products.
Moreover, Shimp and Sharma (1987) also developed CETSCALE which contained 17 items
4
to measure consumer ethnocentrism. This research will apply 3 variables of CETSCALE
(1987) to measure consumer ethnocentrism. Based on the studies cite above, we proposed
the following hypotheses:
H1.1: Consumer ethnocentrism has a significant effect on attitude towards country of
brand
H1.2: Consumer ethnocentrism has a significant effect on attitude towards country of
manufacture
H1.3: Consumer ethnocentrism has a significant effect on perceived country image
H1.4: Consumer ethnocentrism has a significant e effect on perceived brand association
towards country of brand
H1.5: Consumer ethnocentrism has a significant e effect on perceived brand association
towards country of manufacture
H1.6: Consumer ethnocentrism has a significant effect on perceived brand quality
towards country of brand
H1.7: Consumer ethnocentrism has a significant e effect on perceived brand quality
towards country of manufacture
H1.8: Consumer ethnocentrism has a significant effect on purchase intention
1.3. Consumer attitude
Consumer attitude are defined as a combination of a consumer's beliefs, feelings and
behavioral intentions towards a certain object—usually a brand or retail store—within the
context of marketing. These elements are considered as a unit because they are highly
interrelated and represent forces that influence how the consumer reacts to the thing (Lars
Perner, 1999-2018). Attitude towards behavior, being a positive or negative evaluation of a
customer, shows affection, interest and thereby beneficially or detrimentally affects the
perception and consumption behavior of customers (Ajzen & Fishbein, 1980). There is a
relationship between attitude and behavior that many studies have mentioned, typical studies
on the relationship between attitude and consumption intention (Hsieh, 2004; Litvin, 1999;
Canniere et al., 2009). The research results show that there is a positive impact of attitude
on consumer behavior. Research by Mourali (2005) showed that when consumers consider
a product from a higher image of product-origin, the positive relationship between country
of origin image and product evaluation is strengthened as the consumer perceives that the
product origins are congruent. In this study we refer to attitude towards country of brand
5
origin (AOB) and country of manufacture (AOM) of customers will have an impact on
purchase intention. Therefore, we propose the following hypothesis:
H2.1: Attitude towards country of brand has a positive effect on perceived country image
H2.2: Attitude towards country of manufacture has a positive effect on perceived country
image
H2.3: Attitude towards country of brand has a positive effect on perceived brand quality
towards country of brand
H2.4: Attitude towards country of manufacture has a positive effect on perceived brand
quality towards country of manufacture
H2.5: Attitude towards country of brand has a positive effect on perceived brand
association towards country of brand
H2.6: Attitude towards country of manufacture has a positive effect on perceived brand
association towards country of manufacture
H2.7: Attitude towards country of brand has a positive effect on purchase intention
H2.8: Attitude towards country of manufacture has a positive effect on purchase intention
Besides country of origin, this study also proposes to analyze the impact of consumer
ethnocentrism and consumers’ attitude towards country of origin in a research model on the
relationship between country of origin and consumer purchase intention
1.4. The country of origin
According to Olson and Jacoby (1972) showed that the evaluation of quality is strongly
influenced by internal factors (product characteristics) rather than external factors. This
suggests that the perception of product quality may be affected to a limited extent when
referring to the country of origin. Fournier (1998) indicated that country of origin affiliating
a product to national identity that leading to a strong emotional attachment to certain brands
and products. Various researches have shown that the consumer purchase intention is
influenced significantly by the country of origin (Ulgado and Lee, 1993; Iyer and Kalita,
1997). When customers are provided only the product's brand name and COM, they will
base their total opinion of the product on both of these cues. Consumers will utilize the brand
name as the basis for their overall evaluation of a product when given specific attribute
information as well as the brand name and the COM.
Multinational manufacturers can measure COO by dividing COO into two separate parts
to minimize some restrictions, found that (Chao, 1993): Country of origin of a brand (COB)
and country of manufacture (COM) (Ozsomer and Cavusgil, 1991; Chao 1993). Consumers
6
frequently regard COB and COM marks as a product quality factor when intrinsic qualities
are not accessible (Huber and McCam, 1982; Olson, 1997; Olson and Jacoby, 1972). Lee &
Lee (2011), show that COO refers to consumer's attitude about one or more of the following
areas: (1) Particular country in general; (2) The overall of its production or (3) articular
products offered by a particular country. Based on the literature reviewed, this study
proposed COO by Lee & Lee (2011), including: perceived country image; perceived brand
association and perceived brand quality of Japanese cosmetics.
1.4.1. Country Image
Country image is known as the overall perception of products from a particular country,
it based on consumer’s prior perception of the country production and marketing capabilities.
(Roth & Romeo, 1992). In the other word, country image is the consumers’ beliefs about
product categories and other aspects, including: the historical, political, economic and social
values of the country, as well as its brands, companies and politics (Jenes, 2008), cultural
symbols, degree of industrialization, values, products (Essoussi & Merunka, 2007),
technology and standard of living (Chinen & Sun, 2011). The notion of branding a country
is validated by the idea that a nation’s image influences perceptions of products
(O’Shaughnessy and O’Shaughnessy 2000). Consumers perceive foreign products in two
ways: reputational capital is a belief-driven factor for consumers, where the buyer believes
that the nation is (or isn’t) able to create a product that stands up to the standards they seek
from the product. According to Hsieh (2004) and Zeugner and Diamantopoulos (2010), the
customer's attitude about the origin of the goods has a relationship with purchase intention.
The study of Rezvani et al. (2012) also demonstrated that country image affect purchase
intention directly. Besides, Junlang (2001) & Fengfu (2004) indicated that the country image
has no impact on customer purchase decision, but it impacts indirectly on purchase decision
through consumers’ brand attitude and trust in product.
When it comes to Japan, there are many articles that have evaluated Japan as a civilized
country (U.S News, 2021); a modern country (Okafọ, 2009; U.S News, 2021); a developed
country (Investopedia, 2021; Lechevalier, 2014); a country with strong cultural identity (U.S
News, 2021; ICPR, 2020); health-conscious countries (Trimble, 2018; Radu, 2020; Miller
& Wei, 2021); a technology country (SUSHUKE MURAI, 2017; Forbes, 2019; Getzoff,
2020; U.S News, 2021). Based on the above information, this study uses the following
criteria: (1) civilized; (2) modern; (3) strong cultural identity, (4) focus on health and (5)
technology country as a scale in the questionnaire about Country Image. The hypotheses of
this study is proposed as the following:
7
H3.1: Perceived country image has a positive effect on perceived brand quality towards
country of brand
H3.2: Perceived country image has a positive effect on perceived brand quality towards
country of manufacture
H3.3: Perceived country image has a positive effect on perceived brand association
towards country of brand
H3.4: Perceived country image has a positive effect on perceived brand association
towards country of manufacture
H3.5: Perceived country image has a positive effect on purchase intention
1.4.2. Brand associations
Brand associations consist of all brand-related thoughts, feelings, perceptions, images,
experiences, beliefs and attitude (Kotler and Keller, 2006). According to Keller (1993) and
Supphellen (2000), brand connections exist in the mind of the consumer, hence eliciting
associations directly from the consumer would be the most accurate assessment.
Furthermore, Supphellen asserted that the only reliable way to generate brand associations
is to conduct a qualitative survey of customers directly. The hypotheses of this study is
proposed as the following:
H4.1: Perceived brand association towards country of brand has a positive effect on
perceived brand quality towards country of brand
H4.2: Perceived brand association towards country of manufacture has a positive
effect on perceived brand quality towards country of manufacture
H4.3: Perceived brand association towards country of brand has a positive effect on
purchase intention
H4.4: Perceived brand association towards country of manufacture has a positive
effect on purchase intention
1.4.3. Perceived quality
Aaker’s (1991) insist that perceived quality is important dimensions in brand equity
framework, which express the brand in consumer’s mind and provide a reason to buy.
Perceived quality is defined as the consumers' judgment about an entity's services containing
overall excellence or superiority (Snoj et al., 2004). Chen and Chang (2013) proposed a
novel construct, "green perceived quality", although environmental consciousness is more
popular. According to Agus & Hajinoor (2012), this research suggested a fourth-dimensional
construct of perceived quality using conformance, performance, reliability and durability.
The hypotheses of this study is proposed as the following:
8
H5.1: Perceived brand quality towards country of brand has a positive effect on
purchase intention
H5.2: Perceived brand quality towards country of manufacture has a positive effect on
purchase intention
2. Theoretical Framework
9
Japan is a civilized country PCI1
Japan is a modern country PCI2
Japan is a developed country PCI3
Japan is a strong cultural identity PCI4
Japan is a country that focuses on health PCI5
Japan is a technology country PCI6
Scale of Perceived brand association – PBA (Kotler and Keller, 2006) Code
Perceived brand association towards COB (PAB)
I have a good sympathy for cosmetics whose brands originated from Japan PAB1
I tend to appreciate the quality of cosmetic products whose brands originated PAB2
from Japan
I think cosmetics whose brands originated from Japan, will I of features such as: PAB3
non-irritating to the skin, products containing natural ingredients...
I have high faith in cosmetics whose brands originated from Japan PAB4
I have a positive attitude towards cosmetics whose brands originated from Japan PAB5
Perceived brand association towards COM (PAM)
I have a good sympathy for Japanese cosmetics manufactured in Japan PAM1
I tend to appreciate Japanese cosmetics manufactured in Japan PAM2
If I refer to Japanese cosmetics manufactured in Japan, I will think of features PAM3
such as: non-irritating to the skin, products containing natural ingredients...
I have high faith in Japanese cosmetics manufactured in Japan PAM4
I have a positive attitude towards Japanese cosmetics manufactured in Japan PAM5
Scale of Perceived brand quality – PBQ (Jian & Yazdanifard, 2014) Code
Cosmetics whose brands originated from Japan are safe PQB1
Cosmetics whose brands originated from Japan are non-irritating to the skin PQB2
Cosmetics whose brands originated from Japan contain natural ingredients PQB3
Cosmetics whose brands originated from Japan have highly efficient use PQB4
Perceived brand quality towards COM (PQM)
Japanese cosmetics manufactured in Japan are safe PQM1
Japanese cosmetics manufactured in Japan are non-irritating to the skin PQM2
Japanese cosmetics manufactured in Japan contain natural ingredients PQM3
Japanese cosmetics manufactured in Japan have highly efficient use PQM4
Based on the literature review, the components consumer ethnocentrism, consumer
attitude towards Country of origin (including Attitude towards COB and Attitude towards
COM), Country of origin (including perceived country image, perceived brand association
and perceived brand quality) are expected to have significant impacts on the Purchase
intention for Japanese cosmetics of Vietnamese consumers. In which, the scale of purchase
intention – PIN (Lee and Tai, 2009), scale of consumer ethnocentrism - CE (Shimp and
Sharma, 1987; Han, 1990), scale of attitude towards country of origin - AOO (Chao, 1993;
Huber and McCam, 1982; Olson, 1997; Olson and Jacoby, 1972), scale of country image -
PCI (Forbes, 2019; ICPR, 2020; Radu, 2020 ; Getzoff, 2020; US News, 2021; Investopedia,
2021; Miller & Lu, 2021), scale of perceived brand association – PBA (Kotler and Keller,
10
2006), scale of perceived brand quality – PBQ (Jian & Yazdanifard, 2014) was evaluated as
suitable and selected to apply to increase the validity and rationale for this study.
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CHAPTER 3: METHODOLOGY
This chapter presents the research process, research methods, data analysis, scales and
sample information from the responses to the quantitative research section.
2. Research design
A quantitative study approach was implemented, in this research and the priority given
to identify the impact of country-of-origin on consumer’s intention to purchase Japanese
cosmetics in Vietnam. The data collection also involves numeric information through
12
questionnaires so that the final database represents quantitative information. Reviewing
relevant literature on country of origin helped limit the scope of the research and identified
theories, frameworks, models and findings by other researchers and writers (see Chapter 2).
Likert scale 5-point: In this topic, the distance selected for analysis is Likert scale 5-
point (1: Totally disagree, 2: Disagree, 3: Neutral, 4: Agree, 5: Totally agree) is used to
evaluate the influence of the factors included in the study to have purchase intention.
13
• Finally, the data collected will be analyzed by comparing and contrasting the
similarities and differences.
14
Accordingly, only variables with the appropriate total correlation coefficient (Corrected Item
- Total Correlation) greater than 0.3 and the Cronbach's Alpha coefficient greater than 0.6
are considered acceptable and suitable for inclusion analysis of the variables followed
(Nunnally and BernStein, 1994). According to many researchers, if Cronbach's Alpha is 0.8
or higher, the scale is good and the correlation will be higher.
Structural equation modeling (SEM) is a technique used to specify, estimate and
evaluate models of linear models among a set of observed variables in terms of an often
smaller number of unobserved variables. SEM may be used to build or test theory. When
selecting the SEM, care should be taken to consider a theory’s stage of development.
Exploratory techniques are well suited for establishing and whether it explains a meaningful
amount of variance in an endogenous construct (Roberts, Thatcher and Grover, 2010).
i) Chi-Square test (χ2): Expresses the overall goodness of fit of the entire model at the
p-value = 0.05 (Joserkog & Sorbom, 1989). This is very unlikely in practice because χ2 is
very sensitive to large sample sizes and test strength, so in practice people use the index χ2
/df to evaluate.
ii) Chi-Square ratio/degrees of freedom (χ2/df): Also used to measure the goodness of
fit of the whole model in more detail. Some authors suggest 1 < χ2/df < 3 (Hair et al, 1998);
others suggest that χ2 is as small as possible (Segar & Grover, 1993) and argue that χ2/df <
3:1 (Chin & Todd, 1995). In addition, in some practical studies it is distinguished 2 cases:
χ2/df < 5 (with sample N > 200); or < 3 (when sample size N < 200), the model is considered
a good fit (Kettinger & Lee, 1995).
iii) Statistical significance: Values > 0.05 are considered to be a good fit (Arbuckle &
Wothke, 1999). This means that hypothesis H0 (which is a good model hypothesis) cannot
be rejected, i.e. no better model than the current model can be found. In addition, individual
relationships are also evaluated well based on statistical significance levels. The effects of
exogenous variables on endogenous variables and the effects of endogenous variables on
endogenous variables are evaluated through regression coefficients. The relationships
between the variables are indicated by arrows on the model. The direction of the arrow
represents the direction of the effect of one variable on the other. Corresponding to a
relationship we have a corresponding hypothesis. In studies in the social sciences, all
suggested causal relationships have a 95% confidence level (p = 0.05) (Cohen, 1988).
One Sample T-test is also known as Student’s t test. It is a statistical analysis technique
that was developed by William Sealy Gosset in 1908 as a means to control the quality of
dark beers. A t test used to test whether there is a difference between two independent sample
15
means is not different from a t test used when there is only one sample (as mentioned earlier).
However, if there is no difference in the two sample means, the difference will be close to
zero. Therefore, in such cases, an additional statistical test should be performed to verify
whether the difference could be said to be equal to zero. Accordingly, we will test a pair of
hypotheses H0: X mean = comparison value and H1: X mean is not equal to the comparison
value; compare p value (sig) with significance level, quotient is 10%. If sig < 0.1 then reject
H0, otherwise we accept H0.
Analysis of Variance (ANOVA) is a collection of statistical models and their
associated estimation procedures (such as the "variation" among and between groups) used
to analyze the differences among means. ANOVA was developed by the statistician Fisher
(1918). Accordingly, in Test of Homogeneity of Variances, if sig < 0.1, then conclude that
the variance between the two groups is not the same and the next step will use Tamhane's
test in Post Hoc; if sig > 0.1, then conclude that the variance between the two groups is
identical and the next step will use the LSD test in Post Hoc. In Post Hoc, if the sig of any
comparison pair is < 0.1, the conclusion is that the pair has a difference; when there is a
difference, based on the value "Mean Difference (I-J)" to see which group is smaller, which
group is larger.
Through the selection and formation of a suitable sample structure from 379 respondents,
the study created a good foundation for data analysis as well as ensuring the authenticity of
the study. Besides, through analysis and testing methods such as quantitative method,
descriptive statistics, Cronbach alpha, SEM, One Sample T-test and ANOVA, which have
contributed to the reliability of the data and research results, furthermore, these methods help
to find the correlations between factors, as a result, this study come up with new findings
that can contribute to previous research.
16
CHAPTER 4: ANALYSES AND FINDINGS
This chapter is going to examine the sample structure, describe behavior of using Japanese
cosmetics, analyses the country of origin’s impact on consumer purchase intention and
explore how the differences in demographic effect on variables, which finds out new findings
and give recommendations for businesses.
17
spiritual foundation, contributing to affirming the country's position and enhancing the
country's image in the international arena. Therefore, survey’s respondents who from student
to worker all view Japan with positive images, specifically: civilized country, modern
country, developed country, strong cultural identity, country that focuses on health and
technology country. These elements above contributing to the positive impact of the
customers think about the products originated from Japan (Table 3).
Table 3. Knowing about Japan
The way of knowing about Japan/ From 16 - 22 23 - 30 Over 30 Sum
Age years old years old years old (%)
Have lived (studied/worked) in Japan 22.20 10.30 5.80 38.30
Have travels/business trips in Japan 6.30 3.70 2.90 12.90
Have friends/relatives living in Japan 2.40 1.60 1.60 5.60
Have research or knowledge about
25.10 10.80 5.50 41.40
Japan
Have been in contact and working
8.70 6.60 2.90 18.20
with Japanese people
Have an interest in Japanese culture 30.90 12.70 5.00 48.60
Have a desire to study and work in
16.10 6.10 2.40 24.60
Japan
Others 10.60 2.40 2.10 15.10
Source: Primary Data, 2021
The sample structure is based on the analysis results in men and women, the age group
from 16-22 to over 30 years old is taken from the results of Age/ Occupation,
Education/Family income level, Marital status/ Age and The way of knowing about
Japan/Age shows us the current trend of cosmetic consumption: women and young people
make up the majority, besides, survey participants from students to workers all view Japan
with positive images that contribute to positive impact on customers' thinking about products
originating from Japan.
18
brands mentioned above because of the high price and few places to sell, official distributors
(Table 4).
Table 4. Knowing about Japanese cosmetic product
You have been using cosmetics whose brands originated from Japan/ Yes No
Age/ Gender (%) (%)
From 16 - 22 years old Male 71.60 28.40
Female 90.60 9.40
23 - 30 years old Male 84.00 16.00
Female 89.80 10.20
Over 30 years old Male 82.40 17.60
Female 94.90 5.10
Japanese cosmetics brands which you have used Frequency Percent (%)
Hada Labo 167 12.48
SK-II 83 6.20
Shiseido 106 7.92
DHC 121 9.04
Shu Uemura 108 8.07
Kosé 53 3.96
Saborino 14 1.05
Senka 157 11.73
Curél 42 3.14
Silcot 82 6.13
Bioré 174 13.00
OXY 78 5.83
Sunplay 153 11.43
Source: Primary Data, 2021
19
The commonly used cosmetics/ Gender
100 93.86
90 85.96
81.56
74.02 77.39
80
70
60
50
40
30 25.98 22.61
18.44
20 14.04
10
6.14
0
Facial cleanser, Mask Sunscreen Skincare: cream, Makeup: lipstick,
makeup remover, serum, toner… powder, eye brown
cotton pad pencil, eyeliner…
Male Female
20
Sum(%) 49.60 26.90 13.10 10.30 99.90
The willingness to pay for 01 Sum(%
Male Female
Japanese product/ Gender/ Sample)
Marital status Single Married Single Married
From 200,000 to 500,000VND 6.30 0.80 22.40 1.60 31.10
Over 500,000 to 1 million VND 9.20 4.00 28.00 4.50 45.70
Over 1 million to 5 million VND 7.10 1.30 9.80 4.70 22.90
Over 5 million VND - - - 0.30 0.30
Sum(%) 22.60 6.10 60.20 11.10 100.00
21
correlation of the component variable and the total variable is high, the scale measure with
high reliability.
Table 6. Cronbach alpha test results on scales of the dependent variables (AOB)
Scale Scale Cronbach's
Corrected
Mean if Variance Alpha if
Variables Code Item-Total
Item if Item Item
Correlation
Deleted Deleted Deleted
Attitude towards country of brand (AOB), Cronbach's alpha = 0.75
Country of brand is an AOB1 8.14 2.46 0.57 0.66
important factor which
affects my purchase decision
I appreciate the value of AOB2 7.98 2.43 0.65 0.59
products whose brand
originated from famous
nations.
I am willing to pay more for AOB3 8.43 2.12 0.53 0.74
products whose brand
originated from famous
countries
Consumer Ethnocentrism (CE), Cronbach's alpha = 0.68
Vietnamese should consume CE1 5.89 4.38 0.51 0.59
domestic products instead of
imported products
Vietnamese only consume CE2 5.97 3.66 0.51 0.58
imported products when
they are not available in the
country
Vietnamese should not buy CE3 6.50 3.72 0.49 0.60
imported goods because it
affects negatively to
domestic enterprises and
increases unemployment
rate
Perceived Brand Association towards COB (PAB), Cronbach's alpha = 0.86
I have a good sympathy for PAB1 15.66 9.37 0.72 0.88
cosmetics whose brands
originated from Japan
I tend to appreciate the PAB2 15.68 9.23 0.77 0.87
quality of cosmetic products
whose brands originated
from Japan
If I refer to cosmetics whose PAB3 15.77 9.25 0.70 0.89
brands originated from
Japan, I will think of
features such as: non-
irritating to the skin,
products containing natural
ingredients...
I have high faith in PAB4 15.74 9.22 0.78 0.87
cosmetics whose brands
originated from Japan
22
I have a positive attitude PAB5 15.63 9.44 0.79 0.87
towards cosmetics whose
brands originated from
Japan
Perceived Brand Quality towards COB (PQB), Cronbach's alpha = 0.86
I rate cosmetics whose PQB1 10.83 6.51 0.68 0.83
brands originated from
Japan as safe
I rate cosmetics whose PQB2 11.23 5.22 0.74 0.81
brands originated from
Japan as non-irritating to the
skin
I rate cosmetics whose PQB3 11.11 5.72 0.71 0.82
brands originated from
Japan as containing natural
ingredients
I rate cosmetics whose PQB4 10.98 6.21 0.72 0.82
brands originated from
Japan as highly efficient use
Perceived Country Image (PCI), Cronbach's alpha = 0.91
Japan is a civilized country PCI1 21.06 13.44 0.75 0.90
Japan is a modern country PCI2 20.91 13.16 0.81 0.89
Japan is a developed country PCI3 20.78 13.26 0.83 0.89
Japan is a strong cultural PCI4 21.04 13.26 0.70 0.91
identity
Japan is a country that PCI5 20.83 13.27 0.75 0.90
focuses on health
Japan is a technology PCI6 20.94 13.47 0.73 0.90
country
Purchase Intention (PIN), Cronbach's alpha = 0.92
I give priority to cosmetics CPI1 10.50 8.83 0.83 0.90
whose brands originated
from Japan when consuming
I am willing to pay more for CPI2 10.45 8.95 0.81 0.91
cosmetics whose brands
originated from Japan
If there is a consideration CPI3 10.44 8.64 0.85 0.89
among cosmetics with
different brands, I will give
preference to cosmetics
whose brands originated
from Japan
In the future, if I have a CPI4 10.35 9.34 0.80 0.91
demand to use cosmetics, I
will choose cosmetics whose
brands originated from
Japan.
The study analyzes the correlation between the components in model by SEM method:
(e) consumer ethnocentrism (CE); (c) attitude towards country of brand (AOB); (i) perceived
country image (PCI) and (a) perceived brand association towards COB (PAB); (q) perceived
brand quality towards COB (PQB); (j) purchase intention (PIN). The results of SEM were:
23
Chi-square/df = 2.116 < 3.0 (Kettinger & Lee, 1995); TLI = 0.944 and CFI = 0.950 are both
greater than 0.90 (Segar & Grover, 1993; Chin & Todd, 1995); RMSEA = 0.054 ≤ 0.07
(Taylor et al., 1993) the structural equation modelling analysis of the correlation between (e)
CE; (c) AOB; (i) PCI and (a) PAB; (q) PQB; (j) PIN showed a good fit. The research results
of SEM analysis in Table 7 shows the positive and significant correlations between variables
in theoretical model.
Table 7. The results of testing the hypotheses in theoretical model (AOB)
Hypotheses
Relationships Λ P Hypotheses Accepted
Rejected
CE ---> AOB 0.186 ***
---> H1.1
CE PCI (0.55)ns 0.320
H1.4
CE ---> PAB 0.171 0.002 H1.3
H1.6
CE ---> PIN 0.156 0.012 H1.8
CE ---> PQB 0.213 ***
AOB ---> PCI 0.450 ***
H2.1
AOB ---> PAB 0.367 ***
H2.5 H2.3
AOB ---> PQB (0.09)ns 0.129
H2.7
AOB ---> PIN 0.208 0.004
PCI ---> PAB 0.150 0.008
H3.3 H3.1
PCI ---> PQB 0.027ns 0.566
H3.5
PCI ---> PIN (0.073)ns 0.199
PAB ---> PQB 0.978 ***
H4.1 H4.3
PAB ---> PIN (0.024)ns 0.894
PQB ---> PIN 0.739 *** H5.1
***: P < 0.01; **: P < 0.05; ns: not significantly different from zero at the 0.05 level.
The research results of SEM analysis in Table 7 shows the not significant (at the 95%
confidence level) correlation between CE/PCI (λ=-0.55, P=0.320>0.05), AOB/PBQ (λ=-
0.09, P=0.129>0.05, PCI/PBQ (λ=0.027, P=0.56>0.05), PCI/PIN (λ=-0.073, P=0.199>0.05)
and PAB/PBQ (λ=-0.024, P=0.894>0.05). Therefore, we rejected the following hypotheses:
H1.3: Consumer ethnocentrism has a significant impact on perceived country image. The
result shows that consumer ethnocentrism has an indirect positive impact on perceived
country image through attitude towards the country of brand origin component.
H2.3: Attitude towards the country of brand origin has a direct positive impact on
perceived brand quality. The results in Table 7 show that attitude towards the country of
brand origin in consumption has an indirect significant impact on perceived brand quality
through perceived country image and perceived brand association.
H3.1: Perceived country image has a direct positive impact on perceived brand quality.
H3.5: Perceived country image has a direct positive impact on customer purchase
intention. The results show that perceived country image has an indirect positive impact on
perceived brand quality and purchase intention through perceived brand association.
24
H4.3: Perceived brand association has a direct positive impact on purchase intention. The
results in Table 7 show that perceived brand association has an indirect positive impact on
purchase intention through perceived brand quality.
After removing the relationships that were not statistically significant, the final SEM
analysis model is shown in Figure 3 have explained:
25
results show that if consumers have a higher AOB, they will be a positive impact on the
perception of PCI, PAB leading to PIN. So, it might be concluded that consumers with highly
expressed country of brand take into account seriously PCI, PAB and leading to PIN when
choosing products.
Perceived country image (PCI) has a direct, positive and meaningful impact level on
perceived brand association towards COB (PAB) is 0.15***. Research results show that if
consumers have a PCI higher, there will be a positive impact on the perception of PAB. So,
it might be concluded that consumers with highly expressed perceived country image take
into account seriously PAB to lead to purchase intention when choosing products throughout
indirect affecting perceived brand quality towards COB (PQB). The research results show
the importance of building a good national image that greatly aids in improving the perceived
brand association to increase perception quality of the product in it country.
Perceived brand association towards COB (PAB) has a direct, positive and meaningful
impact level on perceived brand quality towards COB (PQB) is 0.81***. Research results
show that if consumers have a PAB higher, there will be a positive impact on the perception
of PQB.
Perceived brand quality towards COB (PQB) has a direct, positive and meaningful impact
level on purchase intention (PIN) is 0.63***. Research result show that if consumer have
PQB higher, there will be positive impact on the purchase intention PIN.
Attitude towards country of brand (AOB), consumer ethnocentrism (CE) and perceived
quality towards COB (PQB) components explained 61% of the variation of purchase
intention (PIN) on PIN is 0.14***, 0.14*** and 0.63 ***. If perceived quality of customer
increases by 1 unit, there will be an increase in purchase intention by 0.63 units, a very large
impact, will have a great impact on the intention to purchasing the brand.
3.2. Impact of country of manufacture origin on consumer purchase
intention
In order to assess the reliability of the scale of the components in the theoretical model
and the correlation between the observed variables and the total variables, the study used
Cronbach's alpha reliability coefficient with the results shown in Table 8. The correlation
between the observed variables and the total variable includes: (1) Attitude towards country
of manufacture (AOM); (2) Consumer Ethnocentrism (CE); (3) Perceived Brand Association
towards COM (PAM); (4) Perceived Brand Quality towards COM (PQM); (5) Perceived
Country Image (PCI); (6) Purchase Intention (PIN).
26
The results in Table 8 show that Cronbach's alpha coefficient ranges from 0.68 to 0.92 >
0.6 (the Cronbach’s alpha values of consumer ethnocentrism, perceived country image and
purchase intention remain unchanged compared to the previous results in Table 6), proving
that the scale is reliable. In addition, the correlation coefficient of each observed variable
compared to the total variable reached a value greater than 0.3 (Nunnally and Burnstein,
1994). Therefore, it can be concluded that the correlation of the component variables in the
model and the total variable is high, the scale achieves high reliability.
Table 8. Cronbach alpha test results on scales of the dependent variables (AOM)
Scale Scale Cronbach's
Corrected
Mean if Variance if Alpha if
Variables Code Item-Total
Item Item Item
Correlation
Deleted Deleted Deleted
Attitude towards Country of manufacture (AOM), Cronbach's alpha = 0.81
Country of manufacture AOM1 7.82 2.91 0.64 0.77
affects my purchase
intention
I appreciate the value of AOM2 7.63 3.32 0.66 0.74
products manufactured in
famous countries
I am willing to pay more AOM3 7.87 2.96 0.69 0.71
for products manufactured
in famous countries
Perceived Brand Association towards COM (PAM), Cronbach’s alpha = 0.89
I have a good sympathy for PAM1 16.02 8.15 0.77 0.86
Japanese cosmetics
manufactured in Japan
I tend to appreciate PAM2 15.97 8.28 0.73 0.87
Japanese cosmetics
manufactured in Japan
If I refer to Japanese PAM3 16.19 8.32 0.64 0.89
cosmetics manufactured in
Japan, I will think of
features such as: non-
irritating to the skin,
products containing natural
ingredients...
I have high faith in PAM4 16.05 8.17 0.76 0.86
Japanese cosmetics
manufactured in Japan
I have a positive attitude PAM5 15.94 8.31 0.77 0.86
towards Japanese cosmetics
manufactured in Japan
Perceived Brand Quality towards COM (PBQ), Cronbach’s alpha = 0.83
I rate Japanese cosmetics PQM1 11.09 6.09 0.60 0.81
manufactured in Japan as
safe
I rate Japanese cosmetics PQM2 11.61 4.95 0.67 0.78
manufactured in Japan as
non-irritating to the skin
27
I rate Japanese cosmetics PQM3 11.42 5.25 0.70 0.76
manufactured in Japan as
containing natural
ingredients
I rate Japanese cosmetics PQM4 11.28 5.69 0.68 0.78
manufactured in Japan as
highly efficient use
The study analyzes the correlation between the components in model by SEM method:
(e) consumer ethnocentrism (CE); (c) attitude towards country of manufacture (AOM); (i)
perceived country image (PCI); (a) perceived brand association towards COM (PAM); (q)
perceived brand quality towards COM (PQM); and (j) purchase intention (PIN). The results
of SEM were: Chi-square/df = 2.134 < 3.0 (Kettinger & Lee, 1995); TLI = 0.941 and CFI =
0.948 are both greater than 0.90 (Segar & Grover, 1993; Chin & Todd, 1995); RMSEA =
0.055 ≤ 0.07 (Taylor et al., 1993) the structural equation modelling analysis of the correlation
between (e) CE; (c) AOM; (i) PCI; (a) PAM; (q) PQM; (j) PIN showed a good fit. The
research results of SEM analysis in Table 9 shows the positive and significant correlations
between variables in theoretical model.
Table 9. The results of testing the hypotheses in theoretical model (AOM)
Relationships Λ P Hypotheses Accepted Hypotheses
Rejected
CE ---> AOM 0.314 ***
CE ---> PCI (0.035)ns 0.556 H1.2
CE ---> PAM 0.033ns 0.505 H1.5
H1.3
CE ---> PIN 0.22 *** H1.7
H1.5
CE ---> PQM 0.155 *** H1.8
AOM ---> PCI 0.23 ***
H2.2
AOM ---> PAM 0.304 ***
H2.6 H2.4
AOM ---> PQM 0.057ns 0.219
H2.8
AOM ---> PIN 0.184 0.002
PCI ---> PAM 0.217 ***
H3.2
PCI ---> PIN (0.084)ns 0.112 H3.4
H3.5
PCI ---> PQM 0.014ns 0.735
PAM ---> PQM 0.908 ***
H4.2 H4.4
PAM ---> PIN (0.02)ns 0.901
PQM ---> PIN 0.848 *** H5.2
***: P < 0.01; **: P < 0.05; ns: not significantly different from zero at the 0.05 level.
The research results of SEM analysis in Table 9 shows the not significant (at the 95%
confidence level) correlation between CE/PCI, (λ=-0.035, P=0.556>0.05), CE/PAM, ( λ=-
0.033, P=0.505>0.05), AOM/PQM(λ=-0.057, P=0.219>0.05), PCI/PQM (λ=0.014,
P=0.735>0.05), PCI/CIP (λ=-0.04, P=0.112>0.05) and PAM/PIN (λ=-0.02, P=0.901>0.05).
Therefore, we rejected the following hypotheses:
H1.3: Consumer ethnocentrism has a significant impact on perceived country image. The
result shows that consumer ethnocentrism has an indirect positive impact on perceived
country image through attitude towards the country of manufacture origin component.
28
H1.5: Consumer ethnocentrism has a significant impact on perceived brand association
towards COM. The result shows that consumer ethnocentrism has an indirect positive impact
on perceived brand association towards COM through attitude country of manufacture origin
and perceived country image.
H2.4: Attitude towards the country of manufacture origin has a direct positive impact on
perceived brand quality towards COM. The results in Table 9 show that attitude towards the
country of manufacture origin has an indirect significant impact on perceived brand quality
towards COM through perceived country image and perceived brand association towards
COM.
H3.2: Perceived country image has a direct positive impact on perceived brand quality
towards COM and H3.5: Perceived country image has a direct positive impact on purchase
intention. The results show that perceived country image has an indirect positive impact on
perceived brand quality towards COM and purchase intention through perceived brand
association towards COM.
H4.4: Perceived brand association towards COM has a direct positive impact on customer
purchase intention. The results in Table 9 show that perceived brand association towards
COM has an indirect positive impact on customer purchase intention through perceived
brand quality towards.
After removing the relationships that were not statistically significant, the final SEM
analysis model is shown in Figure 4 have explained:
29
Consumer ethnocentrism (CE) has a direct, positive and meaningful impact level on: (1)
attitude towards country of manufacture (AOM) is 0.33***; (2) perceived brand quality
towards COM (PQM) is 0.20***; and (3) purchase intention (PIN) is 0.20***. Research
results illustrated that if consumers have a higher CE, they will be a positive impact on the
perception of AOM, PQM and PIN. So, it might be concluded that consumers with highly
expressed ethnocentrism take into account seriously AOM,PQM and PIN when choosing
products. The research results contribute to helping identify potential target customer
segments in cosmetic in cosmetics business field, with a highly ethnocentric customer
segment, there will be a higher perception of manufacture value.
Attitude towards country of manufacture (AOM) has a direct, positive and meaningful
impact level on: (1) perceived country image (PCI) is 0.24***; (2) perceived brand
association towards COM (PAM) is 0.41***; and (3) purchase intention (PIN) is 0.16**.
Research results show that if consumers have a higher AOM, they will be a positive impact
on the perception of PCI, PAM and PIN. So, it might be concluded that consumers with
highly expressed country of manufacture take into account seriously PCI, PAM and PIN
when choosing products.
Perceived country image (PCI) has a direct, positive and meaningful impact level on
perceived brand association towards COM (PAM) is 0.24***. Research results show that if
consumers have a PCI higher, there will be a positive impact on the perception of PAM. So,
it might be concluded that consumers with highly expressed perceived country image take
into account seriously PAM when choosing products. The research results show the
importance of building a good national image that greatly aids in improving the brand
awareness of the product in it country and has an indirect effect to purchase intention (PIN).
Perceived brand association towards COM (PAM) has a direct, positive and meaningful
impact level on perceived brand quality towards COM (PQM) is 0.82***. Research results
show that if consumers have a PAM higher, there will be a positive impact on the perception
of PQM.
Consumer ethnocentrism (CE), attitude towards country of manufacture (AOM) and
perceived brand quality towards COM (PQM), components explained 67% of the variation
of purchase intention (PIN) and the impact level on PIN is 0.20***, 0.16 ***, 0.64***. If
perceived brand quality towards COM of customer increases by 1 unit, there will be an
increase in perceived brand quality towards COM by 0.64 units, a very large impact, will
have a great impact on the intention to purchasing the brand.
30
Research results also recognize Vietnamese consumers perceive Japan's national image
very positively. Accordingly, they appreciate the cosmetics brand equity of Japanese origin.
As a result, in recent years, Japan has been built a good country image in Vietnam and had
a positive impact, helping Japanese products to penetrate and conquer the Vietnamese
market well.
After analyzing AMOS, COO factors include: PAB, PAM, PQB, PQM have the greatest
direct impact on PIN, but PCI is indirect. AOO factors include: AOB, AOM, in which AOM
is the factor that Vietnamese people have an attitude of interest and lead to promote purchase
intention more than AOB. In addition, the initial hypotheses are eliminated, the remaining
hypotheses will increase the reliability of the research paper. However, the above rejected
hypotheses still have an important meaning because they will help Japanese cosmetic
companies to devise suitable marketing strategies for products through indirect hypotheses
such as image enhancement country for customers to easily associate outstanding products
as well as perceiving the quality that lead to purchase.
Table 10. Differences in Gender, Age, Education and Marital status affect CE
31
CE N Mean Sig. Sig. (2-tailed) Sig.(Test of Sig.
(Independent Equal Homogeneity (ANOVA)
sample T-test) variances of Variances)
assumed
Gender 0.363 0.001
Male 109 3.30
Female 270 2.96
Age 0.13 0.09
16 - 22 239 3.1
23 – 30 84 2.89
> 30 56 3.23
Education 0.01
High school 31 3.18
Trade 38 3.39
school/College
University 268 2.96
Post graduate 42 3.03
Marital status 0.01 0.06
Single 314 3.02
Married 65 3.26
32
demonstrates that the differences between men and women are meaningful. (See Appendix
3)
Table 12. Differences in Gender affect PCI
PCI N Mean Sig. (Independent sample Sig. (2-tailed)
T-test) Equal variances not assumed
Gender 0.006 0.086
Male 109 3.30
Female 270 2.96
4.3.2. Differences in demographic affect Perceived brand quality
The differences in age and marital status significantly affect the mean of Perceived brand
quality. These differences are meaningful because their Sig.(ANOVA) were below 0.1.
Those who are married have more perceived brand quality towards COM & COB. People
who are over 30 years old still have more perceived brand quality towards COM than other
age. (See Appendix 2)
Table 13. Differences in Age and Marital status affect PQB and PQM
N Mean Sig.(Test of Sig. (ANOVA) Sig. (Multiple
Homogeneity of Comparisons)
Variances)
PQB
Marital status 0.93 0.02
Single 314 3.64
Married 65 3.9
PQM
Age 0.16 0.00
16 - 22 239 3.73
23 - 30 84 3.78
> 30 56 4.00 0.04
Marital status 0.2 0.00
Single 314 3.73
Married 65 4.03
4.3.3 Differences in demographic affect Perceived brand association
The differences in age and marital status significantly influence on the mean of Perceived
brand association. These differences are meaningful since their Sig.(ANOVA) were below
0.1. Those who are married have more perceived brand association. Especially, people who
are over 30 years old (the mean value at 4.23) have more perceived brand association towards
COM than other age. (See Appendix 2)
33
Table 14. Differences in Age and Marital status affect PAB and PAM
N Mean Sig.(Test of Sig. (ANOVA) Sig. (Multiple
Homogeneity of Comparisons)
Variances)
PAB
Marital status 0.96 0.02
Single 314 3.88
Married 65 4.12
PAM
Age 0.06 0.01
16 - 22 239 3.95
23 - 30 84 4.04
> 30 56 4.23 0.01
Marital status 0.09 0.008
Single 314 3.96
Married 65 4.22
34
Table 15. Differences in Gender, Age and Marital status affect PIN
PIN N Mean Sig. Sig. (2- Sig.(Test of Sig. Sig. (Multiple
(Independent tailed) Homogeneity (ANOVA) Comparisons)
sample T- Equal of Variances)
test) variances
assumed
Gender 0.101 0.067
Male 109 3.30
Female 270 2.96
Age 0.09 0.01
16 - 22 239 3.4 0.00
23 – 30 84 3.46 0.03
> 30 56 3.85 0.00
Education 0.47 0.06
High 31 3.63
school
Trade 38 3.8
school/
College
University 268 3.4
Post 42 3.54
graduate
Marital 0.46 0.01
status
Single 314 3.42
Married 65 3.78
After T-Test and ANOVA analyzing, the results show that: People who are male, got
married and over 30 years old tend to concern country of origin including COB and COM
in the buying process and have more intention to make a real purchase. Moreover, consumer
ethnocentrism and only the consumer attitude towards country of brand can influence people
buying decision. As a result, Japanese cosmetics companies should concentrate on this
segmentation to have suitable business strategies.
From the sample structure of the study, it reveals that male customers tend to use 3 types
of cosmetics: cleanser (25.98%), sunscreen (22.61%) and mask (18.44%). Therefore,
Japanese cosmetic companies should focus on designing or adding new features to these 3
types of products for male consumers. In addition, since mostly male are willing to pay the
highest price for one product from 500,000 to 1,000,000 VND, cosmetics firms also need to
take into account this range when setting maximum prices for a product.
On the other hand, people who are the age from 16 to 22 can also be seen as potential
consumers. Due to data statistics above, individuals being between 16 and 22 years old have
the highest proportion of having an interest in Japanese culture (30.90%), having research
or knowledge about Japan (25.10%) and having lived (studied/worked) in Japan (22.20%).
Therefore, this group can be considered as an attractive segmentation for cosmetic firms. As
35
this group is interested in Japanese culture and has some researches about the nation, the
Japanese cosmetic companies from Japan can try to put Japanese features on products such
as designing Japanese styles on the packages… and widely marketing it via social media
such as Facebook.
To sum up, ANOVA and T-Test analysis are the basis for Japanese cosmetic companies
to see meaningful correlations between ingredient variables and demographics. This helps
Japanese cosmetic companies have an overview of the Vietnamese market.
36
CHAPTER 5: CONCLUSION AND RECOMMENDATIONS
The research was carried out by quantitative methods, primary data were collected from
379 people nationwide. The study was conducted to test the correlation of attitude towards
country of origin and the factors that influence it. The method of testing the scales including
SEM, Cronbach alpha, T-Test… to analyze the above correlation. It is found that there is a
positive correlation between the components of attitude towards country of origin.
1. Theoretical Contribution
First of all, there are completely positive correlations among variables. To be specific,
both consumer ethnocentrism and attitude towards country of origin have direct effects on
purchase intention.
Furthermore, while perceived brand quality, which is a vital element of country of origin
has a direct impact on purchase intention, the other components including perceived country
image and perceived brand association have indirect influence.
Also, both consumer ethnocentrism and attitude towards country of origin have
relationships with country of origin. In addition, perceived brand quality is directly affected
by consumer ethnocentrism and is indirectly impacted by attitude towards country of origin.
The research has contributed to prior theories by determining the correlation between
variables by answering 03 research questions stated at the beginning of the research.
Specifically:
o Consumer ethnocentrism (CE) → Attitude towards country of origin (AOO)
→ Purchase Intention (PIN)
While previous studies have shown a negative effect between CE and AOO (Shimp &
Sharma, 1987; Vida & Damjan, 2001; Durvasula & Lysonski, 2006; Makanyeza & Du Toit
2016, Balabanis & Siamagka, 2017), this study shows that CE has a positive impact on AOO,
helping to have a different perspective when looking at the relationship between the above
variables as well as contribute to research advancements in the future. At the same time,
AOO has a positive effect on PIN, further supporting theoretical foundation of Ulgado &
Lee (1993); Iyer & Kalita (1997).
o Perceived country image (PCI) → Perceived Quality (PQ) → Purchase
intention (PIN)
This study indicates a positive correlation between PCI and PQ, which is compatible with
previous research (O’Shaughnessy & O’Shaughnessy, 2000; Josiassen et al., 2013). Besides,
research shows that PCI has no direct impact on PIN and it has indirect impact on PIN
37
through Perceived Brand Association (PA) and PQ, which is supported by the previous
research of (Junlang, 2001; Fengfu, 2004; Yin, 2006).
As a research result, it illustrates that Vietnamese consumers are more focus on country
of manufacture than country of brand. In contrast, the research of Thakor & Lavack (2003)
concluded that the effect of country of brand is more important than country of manufacture.
2. Recommendations
Through the research results, there is a suggestion about target segmentations for
Japanese cosmetics businesses when entering Vietnam market. Specifically, businesses
should focus on target customers: unmarried people from the age group 16-22, men who are
married and over 30 years old. Based on the above segment, businesses can identify target
customers to offer suitable products and have effective marketing strategies, especially focus
on cleanser, sunscreen and masks products to help Japanese cosmetics companies easily
penetrate the market.
In addition, the country image is a significant factor that impact on purchase intention.
Therefore, besides focus on product development, Japanese companies also need to enhance
their country image as well as brand reputation through communication channels. It also
shows that building a brand image is very important, if the country image is good, it will
help increase the purchase intention of consumer and help the product overcome the barrier
of consumer ethnocentrism in Vietnam market.
Moreover, to develop Vietnamese products’ image in international market, Vietnam
needs to improve the national image and improve the attitude of foreign customers about
products originating from Vietnam. Also, Vietnam is known as an agricultural country and
having rich and diverse marine resources, so that Vietnamese products have some
competitive advantages in the international market, especially in the agricultural, fishery and
garment industries can boost consumers’ perceived quality based on reputation of these
products.
Perceived quality is also a crucial factor which has a significant impact on purchase
intention. Thus, Vietnamese businesses should improve the quality of their products through
building a product quality management system based on international standards such as
Deutsches Institut für Normung (DIN), American Society for Testing and Materials
(ASTM). … which are applied to the industrial sector; International Organization for
Standardization (ISO), Good Manufacturing Practices (GMP), Global Gap ... are applied to
agriculture - food industries. Besides, Vietnamese businesses should also promote R&D
38
activities, create a diversity of product lines based on original products as well as taking
advantage of available raw materials that have not been exploited to create products with
characteristics of Vietnamese culture. As the results, it not only helps to improve Vietnamese
consumers' perception of the domestic products quality and promotes domestic consumption,
but also creates a fundamental basis for Vietnamese products to compete in the international
market.
Also, smart consumption trend is now becoming popular, whereby consumers are not
only interested in the product quality but also how it is made, especially in corporate social
responsibility. In recent years, waves of boycotts and harsh criticism of businesses dealing
in counterfeit goods, poor quality goods, polluting the environment for their own interests
and affecting the community interests have taken place in Vietnam as well as many countries
in the word. Therefore, social responsibilities (including economic responsibilities, legal
responsibilities, ethical responsibilities and philanthropic responsibilities) are also one of the
factors that contribute to enhancing the country's image in the international market.
Recognizing the importance and benefits of implementing social responsibility in the context
of globalization and international integration, Vietnamese enterprises should also perform
social responsibility in the form of commitments to society in protecting the environment,
to the local communities where the business is located and to employees. On the part of the
Government, it is necessary to supplement and complete the legal framework to create a
solid legal basis, issue policies to encourage enterprises to carry out social responsibility,
such as supporting enterprises to produce according to standards on environmental
protection, clean technology …
Last but not least, the Vietnamese Government also needs to have practical policies to
enhance the national image in the world market, such as: coordinate with relevant
departments to organize the promotion of Vietnamese product brands; adding a number of
strict laws on product quality inspection; investment or promulgation of policies on
supporting potential Vietnamese enterprises to help them get a chance to study and develop
products to the market.
3. Limitations and further research
Besides the new findings, this study still has some limitations. Initially, the sample size
is not large enough and the research sample structure was mainly in the Southwest region of
Vietnam. Consequently, the representativeness of the population is somewhat limited.
Secondly, the research sample of this paper focuses mainly on young people who have good
39
sympathy for Japan, so the objectivity of the research results may be affected. Thirdly, this
study is only conducted in the cosmetic industry of Japan that has a competitive advantage
in foreign markets, so the representativeness of the research results is also restrained. Finally,
many possible factors impact customer purchase intention for imported products.
Nevertheless, the study does not control these factors, which may affect the stability of
research findings.
Future similar studies should expand the study area in both central and northern regions
of Vietnam. The research sample also ought to focus on middle age. In addition, it is possible
to expand research in other industries such as food, pharmaceutical and technology products
of Japan.
40
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48
APPENDIX
I. Appendix 1
QUESTIONNAIRE
I. General perception of the country-of-origin
Personal assessment about the impact of Country-of-brand and Psychology on
Purchase intention
49
Q13. Which of the following characteristics best describes you (can choose more than
one)?
Have lived (studied/worked) in Japan (1) ☐
Others (8) ☐
Q14. Your assessment of the country of Japan for the following criteria according to
convention:
1: TOTAL DISAGREE -> 5: TOTAL AGREE
PCI1 Japan is a civilized country 1 2 3 4 5
PCI2 Japan is a modern country 1 2 3 4 5
PCI3 Japan is a developed country 1 2 3 4 5
PCI4 Japan is a strong cultural identity 1 2 3 4 5
PCI5 Japan is a country that focuses on health 1 2 3 4 5
PCI6 Japan is a technology country 1 2 3 4 5
I almost care about the brand reputation of the manufacturing company (3) ☐
50
1. Question about Brand Association
III. Personal assessment of the impact of Perceived quality and Purchase intention
1. Question about Perceived Quality
51
PQM3 I rate Japanese cosmetics manufactured in Japan 1 2 3 4 5
as containing natural ingredients
Q47. How much are you willing to pay for 01 cosmetic products whose brands
originated from Japan?
From 200 – 500 thousands VND (1) ☐
Over 500 thousands VND – 1 million (2) ☐
SK-II (2) ☐
Shiseido (3) ☐
DHC (4) ☐
Shu Uemura (5) ☐
Kosé (6) ☐
Saborino (7) ☐
Senka (8) ☐
Curél (9) ☐
52
Silcot (10) ☐
Bioré (11) ☐
OXY (12) ☐
Sunplay (13) ☐
Q49. Have you been using cosmetics whose brands originated from Japan?
Yes (1) ☐
No (2) ☐
Q50. If yes, which of the following cosmetics have you been using?
Facial cleanser, makeup remover, cotton pad (1) ☐
Mask (2) ☐
Sunscreen (3) ☐
Skincare: cream, serum, toner… (4) ☐
SK-II (2) ☐
Shiseido (3) ☐
DHC (4) ☐
Shu Uemura (5) ☐
Kosé (6) ☐
Saborino (7) ☐
Senka (8) ☐
Curél (9) ☐
Silcot (10) ☐
Bioré (11) ☐
OXY (12) ☐
Sunplay (13) ☐
53
Q52. You rate the level of satisfaction with cosmetics whose brands originated from
Japan, according to convention:
University (3) ☐
Post graduate (4) ☐
54
A self-employed (make your own business...) (3) ☐
Others (Blue-collar worker…) (4) ☐
- Your monthly income in the following range:
Under 5 million (1) ☐
55
II. Appendix 2
Descriptive
95% Confidence Interval for
Mean
Std. Std. Lower Upper
N Mean Deviation Error Bound Bound Minimum Maximum
Purchase Intention (PIN)
Gender Male 109 3.62 0.88 0.08 3.46 3.79 1 5
Female 270 3.42 1.02 0.06 3.30 3.54 1 5
Total 379 3.48 0.98 0.05 3.38 3.58 1 5
From 16 - 22
Age years old 239 3.40 1.03 0.07 3.27 3.53 1 5
23 - 30 years old 84 3.46 0.92 0.10 3.26 3.66 1 5
Over 30 years old 56 3.85 0.80 0.11 3.63 4.06 2.25 5
Total 379 3.48 0.98 0.05 3.38 3.58 1 5
Educational High school 31 3.69 0.90 0.16 3.36 4.02 1 5
Trade
school/College 38 3.80 0.93 0.15 3.49 4.10 1.25 5
University 268 3.40 1.00 0.06 3.28 3.52 1 5
Post graduate 42 3.54 0.91 0.14 3.26 3.83 1 5
Total 379 3.48 0.98 0.05 3.38 3.58 1 5
Marital Single 314 3.42 0.99 0.06 3.31 3.53 1 5
Married 65 3.78 0.89 0.11 3.56 4.00 1 5
Total 379 3.48 0.98 0.05 3.38 3.58 1 5
Consumer Ethnocentrism (CE)
Gender Male 109 3.30 0.96 0.09 3.12 3.48 1 5
Female 270 2.96 0.89 0.05 2.86 3.07 1 5
Total 379 3.06 0.92 0.05 2.97 3.15 1 5
From 16 - 22
Age years old 239 3.08 0.90 0.06 2.96 3.19 1 5
23 - 30 years old 84 2.89 0.90 0.10 2.70 3.09 1 5
Over 30 years old 56 3.23 1.00 0.13 2.96 3.50 1 5
Total 379 3.06 0.92 0.05 2.97 3.15 1 5
Educational High school 31 3.18 0.88 0.16 2.86 3.51 1.67 4.67
Trade
school/College 38 3.39 1.04 0.17 3.04 3.73 1 5
University 268 2.96 0.90 0.06 2.85 3.07 1 5
Post graduate 42 3.30 0.85 0.13 3.04 3.57 1.67 5
Total 379 3.06 0.92 0.05 2.97 3.15 1 5
Marital Single 314 3.02 0.89 0.05 2.92 3.12 1 5
Married 65 3.26 1.03 0.13 3.00 3.51 1 5
Total 379 3.06 0.92 0.05 2.97 3.15 1 5
Attitude country of Brand (AOB)
Family
Income The low income 69 4.27 0.67 0.08 4.11 4.43 2.33 5
The average
income 194 4.00 0.74 0.05 3.90 4.11 1 5
56
The high income 116 4.14 0.70 0.06 4.01 4.26 1 5
Total 379 4.09 0.72 0.04 4.02 4.16 1 5
Perceived Country Image (PCI)
Gender Male 109 4.07 0.89 0.08 3.90 4.24 1 5
Female 270 4.23 0.64 0.04 4.15 4.31 1 5
Total 379 4.19 0.72 0.04 4.11 4.26 1 5
Perceived Brand Association towards COM (PAM)
From 16 - 22
Age years old 239 3.95 0.74 0.05 3.85 4.04 1 5
23 - 30 years old 84 4.04 0.66 0.07 3.89 4.18 1.4 5
Over 30 years old 56 4.23 0.58 0.08 4.07 4.38 2.8 5
Total 379 4.01 0.71 0.04 3.94 4.08 1 5
Marital Single 314 3.97 0.72 0.04 3.88 4.05 1 5
Married 65 4.22 0.59 0.07 4.07 4.37 2.8 5
Total 379 4.01 0.71 0.04 3.94 4.08 1 5
Perceived Brand Association towards COB (PAM)
Marital Single 314 3.88 0.75 0.04 3.80 3.97 1 5
Married 65 4.12 0.74 0.09 3.94 4.30 2 5
Total 379 3.92 0.75 0.04 3.85 4.00 1 5
Perceived Brand Quality towards COM (PQM)
From 16 - 22
Age years old 239 3.73 0.78 0.05 3.63 3.83 1 5
23 - 30 years old 84 3.78 0.70 0.08 3.63 3.94 1.75 5
Over 30 years old 56 4.00 0.70 0.09 3.82 4.19 2 5
Total 379 3.78 0.76 0.04 3.71 3.86 1 5
Marital Single 314 3.73 0.76 0.04 3.65 3.82 1 5
Married 65 4.03 0.70 0.09 3.86 4.20 2 5
Total 379 3.78 0.76 0.04 3.71 3.86 1 5
Perceived Brand Quality towards COB (PQB)
Marital Single 314 3.64 0.79 0.04 3.55 3.72 1 5
Married 65 3.90 0.79 0.10 3.70 4.09 2 5
Total 379 3.68 0.79 0.04 3.60 3.76 1 5
57
PIN 0.85 3 375 0.47
Marital
PIN 0.54 1 377 0.46
CE 6.91 1 377 0.01
PAB 0.00 1 377 0.96
PAM 2.97 1 377 0.09
PQB 0.01 1 377 0.93
PQM 1.68 1 377 0.20
Family income
AOB 0.32 2 376 0.73
ANOVA
Sum of Squares df Mean Square F Sig.
Gender
CE Between Groups 8.7 1 8.7 10.60 0.00
Within Groups 310.9 377 0.8
Total 319.6 378
PCI Between Groups 2.0 1 2.0 3.88 0.05
Within Groups 195.9 377 0.5
Total 197.9 378
PIN Between Groups 3.2 1 3.2 3.37 0.07
Within Groups 363.0 377 1.0
Total 366.3 378
Age
CE Between Groups 4.1 2 2.0 2.44 0.09
Within Groups 315.5 376 0.8
Total 319.6 378
PAM Between Groups 3.7 2 1.9 3.75 0.02
Within Groups 185.9 376 0.5
Total 189.7 378
PQM Between Groups 3.4 2 1.7 2.96 0.05
Within Groups 214.9 376 0.6
Total 218.3 378
PIN Between Groups 9.2 2 4.6 4.87 0.01
Within Groups 357.0 376 0.9
Total 366.3 378
Educational
CE Between Groups 9.5 3 3.2 3.83 0.01
Within Groups 310.1 375 0.8
Total 319.6 378
PIN Between Groups 7.2 3 2.4 2.49 0.06
Within Groups 359.1 375 1.0
Total 366.3 378
Marital
58
CE Between Groups 3.0 1 3.0 3.58 0.06
Within Groups 316.6 377 0.8
Total 319.6 378
PAB Between Groups 3.0 1 3.0 5.38 0.02
Within Groups 211.4 377 0.6
Total 214.4 378
PAM Between Groups 3.5 1 3.5 7.01 0.01
Within Groups 186.2 377 0.5
Total 189.7 378
PQB Between Groups 3.7 1 3.7 5.91 0.02
Within Groups 233.7 377 0.6
Total 237.4 378
PQM Between Groups 4.8 1 4.8 8.51 0.00
Within Groups 213.5 377 0.6
Total 218.3 378
PIN Between Groups 7.2 1 7.2 7.54 0.01
Within Groups 359.1 377 1.0
Total 366.3 378
Family Income
AOB Between Groups 3.8 2 1.9 3.73 0.03
Within Groups 192.3 376 0.5
Total 196.2 378
Tamhane Multiple
Comparisons
59
Over 30 years -0.27 0.11 0.04 -0.50 -0.04
old
90% Confidence
Interval
AOB The low income The average income 0.26 0.10 0.02 0.06 0.47
The average The low income -0.26 0.10 0.02 -0.47 -0.06
income
The high income The low income -0.13 0.10 0.50 -0.35 0.09
60
III. Appendix 3
Independent Samples Test
Levene's Test t-test for Equality of Means
for Equality
of Variances
F Sig. t df Sig. Mean Std. Error 90% Confidence
(2-tailed) Difference Difference Interval of the
Difference
Lower Upper
CET Equal
variances 0.83 0.36 3.26 377.00 0.00 0.34 0.10 0.17 0.51
assumed
Equal
variances 3.16 187.30 0.00 0.34 0.11 0.16 0.51
not
assumed
PCIT Equal
variances 7.53 0.01 (1.97) 377.00 0.05 (0.16) 0.08 (0.30) (0.03)
assumed
Equal
variances (1.73) 156.07 0.09 (0.16) 0.09 (0.32) (0.01)
not
assumed
PINT Equal
variances 2.71 0.10 1.84 377.00 0.07 0.20 0.11 0.02 0.39
assumed
Equal 1.96
variances 230.79 0.05 0.20 0.10 0.03 0.38
not
assumed
Group Statistics
GENDER N Mean Std. Deviation Std. Error Mean
CET Male 109 3.2997 0.956 0.0915
Female 270 2.9642 0.888 0.0541
PCIT Male 109 3.2997 0.885 0.0848
Female 270 2.9642 0.643 0.0391
PINT Male 109 3.2997 0.876 0.0839
Female 270 2.9642 1.02 0.0621
61
IV. Accepted letter of The 8th International Conference on
Marketing and Retailing
62