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

Author

Listed:
  • Abu H. Ayob

    ( National University of Malaysia, Malaysia,)

  • Wan Mohd Hirwani Wan Hussain

    (National University of Malaysia, Malaysia)

Abstract

This study attempts to profile non-income consumers by examining their decisions to buy local or imported products. Hypotheses were drawn from discussions on the comparative advantages of advanced and developing countries, as well as the effects of a product’s country-of-origin on customers’ purchasing decisions. Data was collected on 296 university students in Malaysia and analyzed through probit regression analysis. The findings reveal that foreign products from advanced countries are preferred by male students because of the superior quality and brand image. On the other hand, family members encourage students to buy local products because they are perceived as being less expensive. Also, students who receive scholarships are more likely to buy local products than self-sponsored students. This research offers insights into ex-ante purchasing behavior in developing countries particularly among non-income consumers

Suggested Citation

  • Abu H. Ayob & Wan Mohd Hirwani Wan Hussain, 2016. "Buying Local or Imported Goods? Profiling Non-income Consumers in Developing Countries," International Review of Management and Marketing, Econjournals, vol. 6(4), pages 688-695.
    • Handle: RePEc:eco:journ3:2016-04-7
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    Cited by:

    1. Chien Thang Pham & Trang Ta Thi Nguyet, 2022. "Using Media to Influence Consumer Attitudes to Domestic Goods in Vietnam by Framing Public Interest: A Media Framing Effect Analysis," SAGE Open, , vol. 12(4), pages 21582440221, November.

    More about this item

    Keywords

    Purchasing behavior; non-income consumer; comparative advantages; country-of-origin; developing countries.;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
    • Q37 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Issues in International Trade

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