Procedia - Social and Behavioral Sciences 81 ( 2013 ) 411 415

1877-0428 2013 The Authors. Published by Elsevier Ltd.

Selection and peer review under the responsibility of Prof. Dr. Andreea Iluzia Iacob.
doi: 10.1016/j.sbspro.2013.06.452
1
st
World Congress of Administrative & Political Sciences (ADPOL-2012)
Shopping Behavior of Indonesian Consumer Towards Imported
Products
Hotniar Siringoringo
a
*, Eko Sri Margianti
a
, Anacostia Kowanda
a
, Trini Saptariani
a
a
Gunadarma University, Jalan margonda Raya No. 100 Depok 16424, Indonesia
Abstract
The objective of this study is to prepare a model of consumer shopping behavior towards imported products. Compared with the
models available, the model made here is based on antecedents of customer loyalty. Questionnaire method is used as research
instrument to capture the shopping behavior of Indonesian consumers towards Chinese products, particularly electronics. The
conclusion follows that there is not direct influence of satisfaction on trust, but there exists influence of country of origin on word
of mouth, and that trust highly influences the loyalty.

2013 Published by Elsevier Ltd.
Selection and peer review under the responsibility of Prof. Dr. Andreea Iluzia Iacob.
Keywords:Shopping Behavior, Imported Product, Indonesia, Loyalty
1. Introduction
Consumer shopping behavior as a field of study is constantly growing. It is evident from the shopping behavior
models prescribed by various researchers. Prominent are gravity model (Huff, 1964; Haynes & Fortheringham 1984;
Mayo, Jarvis, & Xander 1988), dynamic model (Oliver, 1997; Jacoby & Chestnut, 1973) and other mathematical
models. Most of these were undertaken on antecedents of consumer behavior variables majorly based on customer
loyalty constructs (Aaker, 1991; Jacoby & Chestnut, 1978; Oliver, 1999; Jacoby & Kyner, 1973; Day, 1969; Beatty,
Kahle, & Homer, 1988). New variables and dimensions like culture background have added to the enlargement of
the field of study. This study attempts to gauge shopping behaviour of Indonesian consumer towards imported
products.
Indonesian consumer is apparently different from other countries. Indonesian markets for instance are inundated
by imported products. Evidence shows traditional markets and shopping malls for middle and lower class consumer
targets mostly offer imported products from Chinese, Korea, Taiwan, and other Asian countries. Products imported
from these countries are cheaper than from United State America (USA) and Europe. At the other hand shopping
malls for high class such as Plaza Indonesia and Pacific Place in Jakarta offer imported products from USA and
Europe. The purpose of the study is thus to develop a model for consumer shopping behavior towards imported
products that differs based on country of origin (COO).


* Corresponding author: Hotniar Siringoringo. Tel.: +62-812-961-7275
E-mail address: hotniars@staff.gunadarma.ac.id
Available online at www.sciencedirect.com
2013 The Authors. Published by Elsevier Ltd.
Selection and peer review under the responsibility of Prof. Dr. Andreea Iluzia Iacob.
412 Hotniar Siringoringo et al. / Procedia - Social and Behavioral Sciences 81 ( 2013 ) 411 415
2. Research method
Using the tt research model shown in Figure 1, we investigated consumer shopping behavior towards imported
products from China, particularly for electronics products. Questionnaires were distributed to more than 300
consumers but only 214 found valid to proceed for data analysis.
Figure 1. Research model
3. Results and discussion
3.1. Model validation
Using Structural Equation Modeling (SEM) the model was validated to the data. Goodness of fit statistics is used
as measurement of validation. Table 1 show criteria used for validating the model. Result shows that the our
proposed model fit well to the data. Like for example, we proposed direct influence of satisfaction on trust but tt
the result shows there is no direct influence of satisfaction on trust and not the reverse either. On COO we did not
propose direct or indirect influence of WOM, but from the result it shows the existence of direct influence of COO
on WOM.
3.2. Hypotheses test
Country of origin (COO) and word of mouth (WOM) are exogenous variables on this model. Total and indirect
effects between variables are shown in Table 2 and 3
label influences the product quality most. It is in fact found that the country of origin has positive effect on
perceived price, perceived quality, trust, satisfaction, wom, and loyalty. Country of origin however shows the
strongest total influence to word of mouth and loyalty but strongest indirect effect on trust.
Perceived price is only variable that influence satisfaction positively, while with others it is in negative state.
Moreover perceived price shows the biggest influence towards loyalty but in reverse direction. It means the higher
the price, lower will be the loyalty. It is not a surprise as consumer choose Chinese product due to lower price
compared to other imported products and sometimes even to ones produced domestically.
Table 1. Goodness of fit statistics
Index Acceptance value Value
Chi-Square (P-value) > 0.01 444.221 (0.0927)
Root Mean Square Error (RMSEA) <0.08 0.0211
Goodness of Fit Index (GFI) Close to 0.9 is a very good fit 0.890
Adjusted Goodness of Fit Index (AGFI) Close to 0.9 is a very good fit 0.839
Normed Fit Index (NFI) Close to 0.9 is a very good fit 0.903
Non-Normed Fit Index (NNFI) Close to 0.9 is a very good fit 0.985
COO
PP
QP
Trust
Satisfaction
LI
WOM
413 Hotniar Siringoringo et al. / Procedia - Social and Behavioral Sciences 81 ( 2013 ) 411 415

Tabel 2. Total effects between variables

Origin Price Quality Trust Satisfy Wom
Price
Quality
Trust
Satisfy
Wom
Loyalty
0.167
0.268
0.201
0.189
0.280
0.280
-
-
-0.130
0.041
-0.022
-0.145
-
-
0.752
0.681
0.129
0.499
-
-
0.011
0.173
-
1.011
-
-
-
-
-
-0.372
-
-
0.063
0.011
-
0.066

Tabel 3. Indirect effect between variables

Origin Price Quality Wom
Price
Quality
Trust
Satisfy
Wom
Loyalty
-
-
0.195
0.189
0.034
0.132
-
-
-0.001
-
-0.022
-0.145
-
-
0.008
-
0.129
0.499
-
-
0.001
-
0.011
0.063

Perceived quality shows the biggest influence towards loyalty and positively, but it is an indirect influence. It is
however surprising that consumers show loyalty to Chinese products as they perceived them to be of good quality..
Trust shows the biggest influence towards loyalty among other variables which is confirmed by Ribbink, Van Riel
Allard, Liljander and Streukens (2004). Unusual result is found about satisfaction influence on loyalty. It shows that
the higher satisfaction, lower will be the loyalty. Most studies show that customer satisfaction is often considered as
the most important determinant of loyalty (Eggert & Ulaga, 2002). However some prior studies show that
satisfaction and loyalty are independent variables which perhaps have similar determinants. Mittal, Ross and
Baldasare (1998) for instance have shown that some determinants have a direct impact on loyalty. According to
Ostrom and Iacobucci (1995) some determinants can affect satisfaction and loyalty differently. Few studies show the
complexity of determinants relationships with satisfaction and loyalty primarily stems from a basic difference in the
two constructs. Satisfaction is an affective antecedent, whereas loyalty has affective, cognitive, and behavioral
components (Dick & Basu 1994). Depending upon a consumer's goal, performance on a given determinant may
strongly drive satisfaction but may not affect or only weakly affect loyalty (Mittal, Ross, & Baldasare, 1998).
Garbarino and Mark (1999) showed that satisfaction plays a less central role in creating loyalty intentions in non-
transactional exchanges. Agustin and Singh (2005) argued that satisfaction is a basic, lower-order need and
therefore, beyond some point of expectation fulfillment, it will have a lower impact on loyalty intentions.
Many of researchers have shown that intentions related to word-of-mouth are particularly salient as loyalty
indicators (Andreassen, 2001; Boulding, Kalra, Staelin, & Zeithaml , 1993; Brady & Robertson, 2001; Brady,
Cronin, & Brand, 2002; Cronin, Brady, & Hult, 2000; Dabholkar, Shepherd, & Thorpe, 2000; Ganesh, Arnold, &
Reynolds, 2000; Guenzi & Pelloni, 2004; Hong & Goo, 2004; Mattila, 2004; Olsen & Johnson, 2003; Pullman &
Gross, 2004; Salgaonkar & Mekoth, 2004; Selnes, 1993; Sirdeshmukh, Singh, & Sabol, 2002; Tsai, 2001; Wong &
Sohal, 2003; Zeithaml, 1996).
Word-of-mouth behavior has to do talking with others. It can also be noted that word-of-mouth is referred to as
, Johnson, & Morrow,
1986). Word-of-
certain level of continuity in how a customer is related to an object.
Loyalty intention in this study is depiction of loyal mentality. Loyalty theory at a less aggregated level
differentiates loyalty into two main dimensions which are loyalty as behavior and loyalty as a mental state (Day,
1969; Dick & Basu, 1994; Knox, 1998; Rundle-Thiele & Mackay, 2001). The mentality aspect is referred to as
attitudinal loyalty in some models. Loyal behavior may include, for example, such aspects as customer share
(Baumann, Burton, & Elliot, 2005; Pine, Peppers, & Rogers, 1995), frequency of visits (Bolton, Kannan, &
Bramlett, 2000), level of cross-buying (Gremler & Brown, 1999; Hallowell, 1996), and duration of the relationship
414 Hotniar Siringoringo et al. / Procedia - Social and Behavioral Sciences 81 ( 2013 ) 411 415
(Bolton, 1998; Gremler & Brown, 1999; Rundle-Thiele & Mackay, 2001), while loyal mentality has been examined
in terms of attitudes (Day, 1969; Dick & Basu, 1994), preferences (Pritchard, Havitz, & Howard, 1999; Rundle-
Thiele & Mackay, 2001), commitment (Backman & Crompton, 1991), and intentions (Zeithaml et al., 1996).
Frequency count is yet appearing more frequently as loyalty aspects than others in empirical studies. Academic
researches generally show that intentions have a dominant position as loyalty antecedent (Morgan, Anderson, &
Mittal, 2005). Extensive researches have done using re-patronage and word-of-mouth intentions items in the same
multi-item measure of loyalty (such as Andreassen, 2001; Boulding et al., 1993; Brady & Robertson, 2001; Brady et
al., 2002; Cronin et al. , 2000; Dabholkar et al. , 2000; Ganesh et al. , 2000; Guenzi & Pelloni, 2004; Hong & Goo,
2004; Mattila, 2004; Olsen & Johnson, 2003; Pont & McQuilken, 2005; Pullman & Gross, 2004; Salgaonkar &
Mekoth, 2004; Selnes, 1993; Sirdeshmukh et al., 2002; Tsai, 2001, Wong & Sohal, 2003; Zeithaml et al. , 1996).
4. Conclusion
It is evident that there is no direct influence of satisfaction on trust in the case of imported products from China
on Indonesian consumers. It is also evident that there exists a direct influence of COO on WOM. Among variables
proposed, trust shows the biggest influence on loyalty.
Acknowledgements
This research is funded by Direktur Penelitian dan Pengabdian Kepada Masyarakat Dit.Litabmas (Dir. of
Research and Community Services), Directorate of Higher Education, Ministry of National Education & Culture,
for supporting this research by providing funding. We would like also to extend our thanks to Himanshu Dutt who
has spent his hours to read and make some improvement on the grammar.
References
Aaker, D.A. (1991). Managing brand equity: Capitalizing on the value of a brand name, New York: The Free Press.
Agustin, C. & Singh, J. (2005). Curvilinear effects of consumer loyalty determinants in relational exchange. Journal of Marketing Research, 42,
96 108.
Andreassen, T.W. (2001). From disgust to delight: do customers hold a grudge? Journal of Service Research, 4, 39-49.
Backman, S.J. & Crompton, J.L. (1991). The usefulness of selected variables for predicting activity loyalty. Leisure Sciences, 13, 205-20.
Baumann, C., Burton, S. & Elliot, G. (2005). Determinants of customer loyalty and share of wallet in retail banking. Journal of Financial
Services Marketing, 9, 231-48.
Beatty, S.E. & Kahle, L.R. (1998). Alternative hierarchies of the attitude-behavior relationship: The impact of brand commitment and habit.
Journal of the Academy of Marketing Science, 16, 1-10.
h a continuous service provider: The role of satisfaction.
Marketing Science , 17, 45-65.
Bolton, R., Kannan, P.K. & Bramlett, M.D. (2000). Implications of loyalty program membership and service experiences for cust omer retention
and value. Journal of the Academy of Marketing Science, 28, 95-108.
Boulding, W., Kalra, A., Staelin, R. & Zeithaml, V.A. (1993). A dynamic process model of service quality: from expectations t o behavioral
intentions. Journal of Marketing Research, 30, 7-23.
Brady, M.K. & Robertson, C.J. (2001). Searching for a consensus on the antecedent role of service quality and satisfaction: An exploratory cross-
national study. Journal of Business Research, 51, 53-60.
Brady, M.K., Cronin, J.J. & Brand, R.R. (2002). Performance-only measurement of service quality: A replication and extension. Journal of
Business Research, 55, 17-31.
Cronin, J.J., Brady, M.K. & Hult, G.T.M. (2000). Assessing the effects of quality, value, and customer satisfaction on customer behavioral
intentions in service environments, Journal of Retailing, 76, 193-218.
Dabholkar, P.A., Shepherd, C.D. & Thorpe, D.I. (2000) A comprehensive framework for service quality: An investigation of crit ical conceptual
and measurement issues through a longitudinal study Journal of Retailing, 76, 139-73.
Day, G.S. (1969). A two-dimensional concept of brand loyalty. Journal of Advertising Research, 9, 29-35.
Day, G.S. (1969). A two-dimensional concept to brand loyalty. Journal of Advertising Research, 9, 29-35.
Dick, A.S. & Basu, K. (1994). Customer loyalty: Toward an integrated conceptual framework. Journal of the Academy of Marketing Science, 22,
99-113.
Ganesh, J., Arnold, M.J. & Reynolds, K.E. (2000). Understanding the customer base of service providers: an examination of the differences
between switchers and stayers. Journal of Marketing, 64, 65-87.
415 Hotniar Siringoringo et al. / Procedia - Social and Behavioral Sciences 81 ( 2013 ) 411 415
Garbarino, E. & Johnson, M.S. (1999). The different roles of satisfaction, trust, and commitment in customer relationships. Journal of Marketing,
63, 70 87.
Gremler, D.D. & Brown, S.W. (1999). The loyalty ripple effect: appreciating the full value of customers. Industrial Journal of Service Industry
Management, 10, 271-91.
Guenzi, P. & Pelloni, O. (2004). The impact of interpersonal relationships on customer satisfaction and loyalty to the service provider.
International Journal of Service Industry Management, 15, 365-84.
International Journal of
Service Industry Management, 7, 27-42.
Haynes, K.E. & Fortheringham, A.S. (1984). Gravity and spatial interaction model. Sage Publication, the University of Michigan.
Hong, S.- n empirical study. International Journal of
Management, 21, 531-40.
Huff, David L. (1964). Defining and estimating a trade area, Journal of Marketing, 28, 34-38.
Jacoby, J & Chestnut, R. (1978). Brand loyalty measurement and management, New York: John Wiley & Sons.
Jacoby, J. & Chestnut, R.W. (1978). Brand loyalty.Wiley, New York, NY.
Jacoby, J. & Kyner, D.B. (1973). Brand loyalty versus repeat purchasing. Journal of Marketing Research, 10,1-9.
Knox, S. (1998). Loyalty-based segmentation and the customer development process. European Management Journal, 16, 729-37.
Mattila, A.S. (2004). The impact of service failures on customer loyalty: The moderating role of affective commitmen.t International Journal of
Service Industry Management, 15, 134-149.
Mayo, E.J., Jarvis, L.P. & Xander, J.A. (1988). Beyond the gravity model. Journal of the Academy of Marketing Science, 16, 23-29.
Mittal, V, Ross Jr, W.T., & Baldasare, P.M. (1998). The asymmetric impact of negative and positive attribute-level performance on overall
satisfaction and repurchase intentions. Journal of Marketing, 62, 33 47.
Journal of Marketing, 69,
131-51.
Oliver, R.L. (1997). Satisfaction: A behavioral perspective on the consumer, New York, Irwin/McGraw-Hill
Oliver, R.L. (1999). Whence consumer loyalty. Journal of Marketing, 63, 33-44.
Olsen, L.L. & Johnson, M.D. (2003). Service equity, satisfaction, and loyalty: From transaction- Journal of
Service Research, 5, 184-95.
Ostrom, A. & Iacobucci, D. (1995). Consumer trade-offs and the evaluation of services. Journal of Marketing, 59, 17 28.
Pine, B.J., Peppers, D. & Rogers, M. (1995). Do you want to keep your customers forever? Harvard Business Review, March-April, 103-14.
Pont, M. & McQuilken, L. (2005). An empirical investigation of customer satisfaction and loyalty across two divergent bank segments. Journal
of Financial Services Marketing, 9, 344-59.
Pritchard, M.P., Havitz, M.E. & Howard, D.R. (1999). Analyzing the commitment-loyalty link in service industries. Journal of the Academy of
Marketing Science, 27, 333-48.
Pullman, M.E. & Gross, M.A. (2004). Ability of experience design elements to elicit emotions and loyalty behaviours. Decision Sciences, 35,
551-78.
Ribbink, D., Van Riel Allard, C. R., Liljander, V., & Streukens, S. (2004). Comfort your online customer: Quality, trust, and loyalty on the
Internet. Managing Service Quality, 14, 446 456.
Rundle-Thiele, S. & Mackay, M.M. (2001). Assessing the performance of brand loyalty measures. Journal of Services Marketing, 15, 529-46.
Rusbult, C.E., Johnson, D.J. & Morrow, G.D. (1986). Determinants and consequences of exit, voice, loyalty, and neglect: Responses to
dissatisfaction in adult romantic involvements. Human Relations, 39, 45-63.
Salgaonkar, P.B. & Mekoth, N. (2004). Patient as a source of recommendation and it
exploratory empirical study. Journal of Consumer Satisfaction, Dissatisfaction and Complaining Behavior, 17, 16-26.
Selnes, F. (1993). An examination of the effect of product performance on brand reputation, satisfaction and loyalty. European Journal of
Marketing, 27, 19-35.
Sirdeshmukh, D., Singh, J. & Sabol, B. (2002). Consumer trust, value, and loyalty in relational exchanges. Journal of Marketing, 66, 15-37.
Tsai, W.-C. (2001). Determinants and consequences of employee displayed positive emotions. Journal of Management, 27, 497-512.
Wong, A. & Sohal, A. (2003). Service quality and customer loyalty perspectives on two levels of retail relationships. Journal of Services
Marketing, 17, 495-513.
Zeithaml, V.A., Berry, L.L. & Parasuraman, A. (1996). The behavioral consequences of service quality. Journal of Marketing, , 31-46.