Paper Number: P1080. Rarintorn Pongrujaporn Mahidol University International College Thailand

Transcription

1 Paper Number: P1080 The Effects of Brand Awareness, Perceived Quality and Influencers on Purchase Intention of American and South Korean Smartphones A Study of Consumers in Thailand Rarintorn Pongrujaporn Mahidol University International College Thailand Supara Kapasuwan Mahidol University International College Thailand

2 Paper Number: P1080 The Effects of Brand Awareness, Perceived Quality and Influencers on Purchase Intention of American and South Korean Smartphones A Study of Consumers in Thailand ABSTRACT This research investigates factors which influence purchase intention of smartphones, including brand awareness, perceived quality and information seeking from influencers. Additionally, a potential impact of different brand origins is assessed by comparing an American brand and a South Korean brand. The results indicate that brand awareness, perceived quality and information seeking from influencers are positively related to purchase intention. The positive effect of brand awareness on purchase intention is significantly higher for the South Korean brand than the American brand. However, different brand origins do not moderate the relationship between perceived quality and information seeking from influencers, and purchase intention. Keywords: Consumer behavior; Country-of-origin image; Marketing mix

3 Paper no. P1080 Page 1 of 23 INTRODUCTION In the present world characterized by globalization of markets and consumption with real-time information flow and constant communication across times and places, a technological product such as a smartphone has become an essential part of people s life. A lot of people have used smartphones to manage and enjoy their life. According to International Data Corporation (2015), the worldwide smartphone market grew approximately 13% in the second quarter of 2015 compared with the same period last year. The leading brands in terms of market share as of August 2015 included Samsung (21.4%), Apple (13.9%), Huawei (8.7%), Xiaomi (5.6%) and Lenovo (4.7%), respectively. While the demand of smartphones has increased rapidly, the level of competition has also intensified at the same time. Therefore, customers have several alternatives to choose the smartphone that best suits their needs and preferences. As a consequence, to obtain successful performance, the mobile phone companies try to develop new generations of smartphones and implement marketing strategies to respond to specific customers needs and increase the market share. In this study, the researchers focused on investigating the effects of brand awareness, perceived quality and influencers on the consumers intention to purchase two leading brands of smartphones including Apple and Samsung. Brand awareness indicates the likelihood that a particular brand will come to mind of consumers and how easily they can retrieve the brand when given the specific product category (Aaker, 1996; Keller, 1993). Brand awareness can influence consumers perceptions and attitudes towards the product, leading to brand choice at the end of decision making process. According to Wang and Yang (2010), brand awareness can also positively strengthen the relationship between brand credibility and consumers purchase intention. Consequently, the level of consumers awareness of the two major brands of smartphones was evaluated in this study as one of the key determinants of their purchase intention. In addition, consumers are likely to perceive the quality of the smartphones in a

4 Paper no. P1080 Page 2 of 23 specific way leading to their decision to buy or not to buy. Perceived quality, which is a product-related attribute, is a brand association central to brand equity, especially in the dimension of the functional benefits for the consumers (Aaker, 1996; Keller, 1993). Besides their own product and brand assessment, the potential consumers might also seek information about the products from other people who have details or prior experience or those within their social groups which could possibly convince them to purchase smartphones as well (Feick & Price, 1987; Langner, Hennigs & Wiedmann, 2013). Therefore, the relationship between influencers and purchase intention was also assessed in this study. The researchers aimed to make new contribution by comparing the American brand and the South Korean brand of smartphones based on an underlying assumption that the country of origin of the brands could influence the relationship between the major factors mentioned previously and consumers purchase intention. CONCEPTUAL BACKGROUND AND DEVELOPMENT OF HYPOTHESES Brand Awareness A brand which may consist of a name, sign, symbol, image or design, or a combination of them to represent a company s identify and differentiate it from other competitors (Kotler, 1991). It is very important to make people more aware of the brand if a company is to succeed. A recognized brand will more often be selected over an unknown brand. The factor of brand awareness is particularly important in determining which brand first enters into a consumer s consideration and which the consumer will ultimately choose. However, an unknown brand stands little chance because it may never enter into consideration.

5 Paper no. P1080 Page 3 of 23 Brand awareness is the ability of a consumer to recognize or recall a specific company name with regards to a certain product category (Aaker, 1996). Brand awareness can influence perceptions and attitudes. It can increase a buyer s confidence and decision on brand choice to purchase a product. Purchase intention can be defined as a consumer s intention or preference to purchase a specific product (Wang & Tadisina, 2008). Brand awareness reflects the salience of a brand in a consumer s mind. When people want to buy a product, the first reaction they will have is to consider a brand that has a good reputation. For example, when customers want to buy a smartphone, the first brands that come to mind are Apple or Samsung. Thus, they are more likely to seek information regarding products from Apple and Samsung. Brand awareness consists of brand recognition, which relates to consumers ability to indicate whether they have had prior exposure to the brand, and brand recall, which relates to consumers ability to retrieve the brand from memory when given the product category (Aaker, 1996; Keller, 1993). Brand recognition is the minimal level of brand awareness, one step above unawareness. It relates to customers ability to confirm prior knowledge of a brand. Brand recognition happens when customers see and hear the signs representing a particular brand and recognize that a product is from that brand. This is very significant when buyers choose a brand at the point of purchase. Brand recall involves a deeper function of memory because customers can generate the brand name from just their memory without the benefit of their senses. This is unlike recognition and is associated with a stronger brand position (Aaker, 1996). The highest level of brand awareness is top-of-mind. This means that a specific brand has a special position in customers minds. They know the brand very well and have a history of usage of the brand. As a result, the brand has the most opportunity to be chosen (Keller, 1993). Brand awareness plays a very crucial role in a customer s purchase decision-making process. Brand awareness is easily visible when looking at competitors offering the same

6 Paper no. P1080 Page 4 of 23 products or services. A brand name is important to help make people recall the company name easily. It is used to support a company s products to gain more profit. Brand awareness can build certain expectations about a company s services or products. Typically, customers do not choose to purchase from an unknown brand. Therefore, the company with a stronger brand name is on a winning track that may lead customers to choose their specific brand over an unknown brand. Brand awareness is important for a company to motivate customers decision-making process and identify the conditions that customers apply before making decisions. How does brand name influence customers purchase decisions and why do customers purchase a particular brand? The answers also imply how customers decide what to buy (Tan, Liew, William, Michelle & Tan, 2012). In this research, the influence of brand awareness is expected to have a positive relationship with consumers purchase intention. H1: There is a positive relationship between brand awareness and purchase intention of smartphones of both American and South Korean brands. Perceived Quality Perceived quality is the personal value consumers attach to products or services, indicating how customers think the particular product or service can benefit them. It is the customer s perception of the overall quality or superiority of a product or service with respect to its intended purpose, relative to any alternatives (Zeithaml, 1988). Perceived quality is an intangible, overall feeling about a brand and how it makes a customer feel about companies products and services (Aaker, 1991, 1996; Zeithaml, 1988). Perceived quality may lead to customer satisfaction and thereby attract more customers to purchase, determined by perceived performance and fulfillment of expectations.

7 Paper no. P1080 Page 5 of 23 Perceived quality directly influences purchase decisions, especially when a buyer is not motivated or able to conduct a detailed analysis. It also supports premium pricing, price elasticity and brand usage, which can create gross margin for a company. Perceived quality can be measured by scales in comparison to alternative brands (Aaker, 1996). First, the product has high quality, average quality, or inferior quality when compared to alternative brands with similar products or services. Second, the product is the best or one of the best, or one of the worst or the worst compared to alternative brands. Third, the product has consistent or inconsistent quality when compared to alternative brands (Aaker, 1996). Nowadays, companies have unique designs in order to beat other companies and let customers have more choices about which company can better satisfy their needs. For instance, Apple offers the iphone, a smartphone that is very famous in terms of reliability and performance and thus has a very high price. Meanwhile, Samsung also offers several types of smartphones with a wide range of prices and useful functions. In this research, perceived quality is expected to influence the purchase intention of smartphones for Apple and Samsung users. Quality encompasses product features and functions, such as design, ease of use, uniqueness, operation, characteristics, etc. H2: There is a positive relationship between perceived quality and purchase intention of smartphones of both American and South Korean brands. Information Seeking from Influencers Social influence supports direct information processing by focusing people on a relevant set of information involving reality, relations with others, and the self. These influence motives can alter the social meaning of consumption and purchasing decisions. This is because an individual may psychologically associate his or her self with a social group to attribute group-defining characteristics and take the group s interest or opinion in terms of buying behavior (Langner, Hennigs & Wiedmann, 2013). Social relationships with family,

8 Paper no. P1080 Page 6 of 23 relatives, acquaintances and friends can have a strong influence on consumers' buying behavior, especially in the initial stage of buying a product. This is because these people have stronger ties with the consumers and thus they are the most trusted and influential source of information. In addition, consumers are more likely to compare themselves with other people close to them and assess how sophisticated those people are in terms of consumption, and the need to comply with group norms will stimulate their observation of what their peers use and consequently buy similar products (Simpson, Siguaw & Cadogan, 2008). In addition, some individuals such as experts who can provide specific information related to a product category may strongly influence the consumers to make a decision (Langner, Hennigs & Wiedmann, 2013). In this study, the researchers posited that key influencers such as family and friends and information or recommendation from social networks might influence consumer s purchase intention of smartphones. The literature review leads to the following hypothesis: H3: There is a positive relationship between the extent to which the consumers search for and utilize information, opinion or advice from influencers and purchase intention of smartphones of both American and South Korean brands. Country-of-Brand-Origin Previous research addressed the importance of the country of origin (COO) which was expected to influence consumers product evaluation, especially in terms of quality and value, leading to purchase intention; however, more recently many researchers shifted towards studying the impact of the country to which a brand has developmental ties which might be more significant than the country of design, manufacture or assembly (Pharr, 2005). The country-of-brand-origin, or in short brand origin (BO) is defined as a country where a brand appears to originate which reflects the nationality of the brand, whereas the country of manufacture is the country which produces the branded product (Hamzaoui-Essoussi, Merunka & Bartikowski, 2011). Macro images of a country such as the level of economic

9 Paper no. P1080 Page 7 of 23 development, technological advancement and innovation, and micro images which are beliefs about specific products manufactured by a country (e.g. German cars and Japanese consumer electronics products are of high quality) can influence brand equity (Pappu, Quester & Cooksey, 2007). In this study, the researchers proposed a moderating effect of two countries of brand origin, U.S.A. and South Korea, on the relationship between proposed influential factors including brand awareness, perceived quality and influencers, and purchase intention. In terms of the macro images, U.S.A. is ranked higher than South Korea in the level of the financial resources devoted to research and development as a share of total economic output, the share of human resources devoted to R&D, measured as the share of the total labor force made up of researchers, and most importantly the innovative output measured by the number of patents granted per capita, the conventional measure of innovation (Florida, Mellander & Stolarick, 2011). In addition, in terms of the micro image which is more related to a specific product category manufactured by a country, the American brand origin is also perceived by consumers to have a higher level of technology and performance reliability (Country Brand Index, 2014). On the other hand, South Korea is ranked higher than U.S.A in the dimension of human capital as measured by the share of the population in the proper age group that has engaged in tertiary education (Florida, Mellander & Stolarick, 2011). For the micro image specifically relative to smartphones, the South Korean brand origin is perceived better than the American brand in terms of relationship building and social engagement (probably influenced by the country s collectivistic national culture which emphasizes social relationship), especially through the use of various forms of social media, leading to positive perception towards South Korea as a country-of-origin, higher level of brand awareness, affection and dependence (Country Brand Index, 2014; Shaughnessy, 2014). The literature review leads to the development of the following hypotheses:

10 Paper no. P1080 Page 8 of 23 H4: The positive relationship between brand awareness and purchase intention is stronger for the South Korean brand origin than for the American brand origin. H5: The positive relationship between perceived quality and purchase intention is stronger for the American brand origin than for the South Korean brand origin. H6: The positive relationship between the extent to which the consumers search for and utilize information, opinion or advice from influencers and purchase intention of smartphones is stronger for the South Korean brand origin than for the American brand origin. Figure 1 presents the conceptual model and all hypothesized relationships to be tested. Figure 1 Conceptual Model Brand Awareness H1(+) Perceived Quality H2(+) Purchase Intention of Smartphones Information seeking from Influencers H3(+) H4, H5, H6 Brand Origin (American vs. South Korean)

11 Paper no. P1080 Page 9 of 23 Sample and Data Collection METHOD The target population of this study consisted of university students, working males and females living in Bangkok, Thailand with an age more than 20 years old. The reason why Thailand was considered as an appropriate context for this study was because as of the first quarter of 2014, the number of mobile subscribers in Thailand was 96,368,368, out of which over 55 million were 3G subscribers and (Yozzo Co., Ltd., 2014). Approximately 90 percent of the years old consumers in Thailand access the Internet only via mobile phones and it is estimated that the time Thai people spent on the Internet via mobile phones accounted for 49 percent of all media use which was higher than the time spent watching television at 36 percent (Yozzo Co., Ltd., 2014). Based on the information from the Official Statistics Registration Systems, Thailand, in 2014, the target population was 2,100,379 people. Using the formula by Yamane (1967), the sample size for this study was 400 people. The researchers collected data in urban areas where businesses, universities and organizations were located. The researchers distributed the questionnaires directly to respondents and engaged in face-to-face interaction. The researcher asked each potential respondent whether he or she was at least 20 years old and was making consideration to buy smartphones of the American brand (Brand A) and the South Korean brand (Brand S). If the answer was yes and the person was willing to cooperate, then the researcher asked him or her to fill out the survey questionnaire. The researchers used quota sampling and collected data from 200 respondents who indicated that they intended to buy a smartphone of the American brand A and 200 respondents who intended to buy a smartphone of the South Korean brand S.

12 Paper no. P1080 Page 10 of 23 Research Instrument To investigate constructs in this study, the researchers used multi-item measures to increase the reliability (Nunnally and Bernstein, 1994). The key constructs of brand awareness, perceived quality, degree of information seeking from influencers and purchase intention were measured by the use of 1) existing scales that had been implemented and validated in past studies, with slight adaptation to fit the present research context, and 2) newly developed measures. All items were rated on five-point Likert scales (1 = strongly disagree to 5 = strongly agree) and specified to a product-specific context. For the purpose of our study, the context of smartphone market as chosen. Material possession such as smartphones could symbolize personal identity and social status and position (O Cass & McEwen, 2004). Thus, the smartphone market was considered appropriate for studying the relationship between brand awareness, perceived quality and influencers, and purchase intention. Data analysis In the processes of data analysis of this study, first scale validation in terms of unidimensionality, reliability and reliability of constructs was performed using established procedures including both exploratory and confirmatory factor analyses (Anderson & Gerbing, 1982; Nunnally & Bernstein, 1994). Assessment of internal consistency reliability was based on calculations of Cronbach s alpha coefficients (Nunnally & Bernstein, 1994; Peter, 1979). After ensuring that the constructs are unidimensional, the data from the survey was analyzed by using ordinary least square (OLS) regression. Analyses of multicollinearity, curvilinearity and heteroscedasticity were performed to evaluate that ordinary least squares (OLS) regression estimates were appropriate for hypothesis testing.

13 Paper no. P1080 Page 11 of 23 RESEARCH RESULTS Demographic Characteristics of Respondents The researchers personally distributed 200 questionnaires to respondents who were making decision to purchase the American Brand A smartphones and 200 questionnaires to respondents who were making decision to purchase the South Korean Brand S smartphones. Descriptive statistics of the respondents characteristics, including gender, age and income were provided in Table 1 below. Table 1 Demographic Characteristics of the Respondents Gender, Age, Income Demographic Characteristics American Brand A South Korean Brand S Frequency Percent Frequency Percent Gender Male % % Female 98 49% % Age years 70 35% % years 66 33% % years 34 17% % years 10 5% % years 7 3.5% 12 6% years 9 4.5% 7 3.5% years 1 0.5% 1 0.5% years 1 0.5% 2 1% 60 years or above 2 1% 0 0% Income < 10,000 Baht 50 25% % 10,000-20,000 Baht % % 20,001-30,000 Baht % 30 15% 30,001-40,000 Baht 24 12% 20 10% 40,001-50,000 Baht 9 4.5% 6 3% > 50,000 Baht % 14 7% According to Table 1, approximately half of the respondents were male and the other half were female for both brands. For the American Brand A, out of 200 respondents, there

14 Paper no. P1080 Page 12 of 23 were 70 respondents or 35% of the respondents aged years old, followed by 66 respondents or 33% aged years old. In addition, 34 respondents or 17% were years old. For the South Korean Brand S, out of 200 respondents, there were 64 respondents or 32% aged years old, followed by 51 respondents or 25.5% aged years old. Next, 40 respondents or 20% were years old. Sixty-seven respondents or 33.5% of all Brand A respondents had income range of 10,000-20,000 baht per month. Fifty respondents or 25% of Brand A respondents had income range below 10,000 baht per month, whereas 37 respondents or 18.5% of all Brand A respondents had income range of 20,001-30,000 baht per month. For the South Korean Brand S survey, there were 83 respondents or 41.5% whose income ranged 10,000-20,000 baht per month. Forty-seven respondents or 23.5% of all Brand S respondents had income range less than 10,000 baht per month and 30 respondents or 15% had income range of 20,001-30,000 baht. Table 2 summarizes the respondents occupation and educational background. Table 2 Demographic Characteristics of the Respondents Occupation and Educational Level Demographic Characteristics American Brand A South Korean Brand S Frequency Percent Frequency Percent Occupation Self-employed 28 14% 32 16% Housewife 2 1% 6 3% Government Officer 10 5% % Employee in private firm % 70 35% Student 72 36% 62 31% Other 9 4.5% 7 3.5% Educational Level High School or Lower % % Bachelor Degree % % Master Degree or Higher 32 16% 30 15% Table 2 showed that the biggest group of the American Brand A respondents comprised 79 respondents or 39.5% who worked as employees in private companies. The second group

15 Paper no. P1080 Page 13 of 23 was 72 respondents or 36% who were students. The third was 28 respondents or 14% who were self-employed. For the South Korean Brand S survey, the biggest group of respondents comprised 70 respondents or 35% who were employees in private companies, followed by 62 respondents or 31% of all respondents who were students. The third group was 32 respondents or 16% who were self-employed. As for educational levels, for the American Brand A survey, there were 131 respondents or 65.5% had a bachelor s degree, followed by 37 respondents or 18.5% who had a high school or lower degree. The last position was 32 respondents or 16% who had a master s degree or higher. For the South Korean Brand S survey, there were 145 respondents or 72.5% who had a bachelor s degree. The second position was 30 respondents or 15% who had a master s degree or higher, followed by the third group of 25 respondents or 12.5% who had a high school or lower degree. Reliability and Factor analysis The reliability in terms of the internal consistency of the multi-item measures of constructs was assessed by means of the Cronbach s alphas. High internal consistency indicates high effectiveness of an instrument (Nunnally and Bernstein, 1994; Peter, 1979). Table 3 shows the coefficient alphas, all of which are greater than 0.70, indicating acceptable reliability of the scales (Nunnally and Bernstein, 1994). Table 3 Composite Reliability of Constructs (Cronbach s α) Construct American Brand A Cronbach's α South Korean Brand S Brand Awareness Perceived Quality Influencers Purchase Intention

16 Paper no. P1080 Page 14 of 23 Then, factor analysis was used to identify underlying factors or variables which explain correlations within a set of observed variables. Factor analysis was used to find how well questions measuring a concept group together as a set and can be used to generate hypotheses or to screen variables for subsequent analysis. The variables that measure the same concept should load together in the same group to confirm convergent validity. (Kline, 1994) In this study, factor analysis was used to measure discriminant validity based on orthogonal and oblique rotations of both iphone and Samsung samples. Orthogonal and oblique rotations produced consistency results of four related factors including brand awareness, perceived quality, influencers and purchase intention. From the results of factor analysis, all related questions in each construct fell into the same group and all factor loadings were greater than 0.5 which were acceptable (Kline, 1994).The results of the factor analysis are summarized in Table 4. Table 4 Results of Factor Analysis Construct Range of Standardized Factor Loadings American Brand A South Korean Brand S Brand Awareness Perceived Quality Influencers Purchase Intention Descriptive Statistics and Correlation Analysis Table 5 provides descriptive statistics for the constructs, along with their correlations for the American Brand A data set. For the American Brand A, the highest average rating was brand awareness (4.163), followed by perceived quality (3.984). However, on average

17 Paper no. P1080 Page 15 of 23 the level of assessment on information seeking from influencers was only moderate (3.345). Finally, the average level of purchase intention for the American Brand A smartphones was high (3.795). Based on correlation analysis, there is a significant positive relationship between each of the independent variables and purchase intention at a significance level of Table 5 Descriptive Statistics and Correlations The American Brand A Variable Brand Awareness Perceived Quality Influencers Purchase Intention Brand Awareness 1.00 Perceived Quality 0.535** 1.00 Influencers 0.033* 0.209** 1.00 Purchase Intention 0.330** 0.461** 0.298** 1.00 Mean Standard Deviation * p < 0.05, ** p < 0.01 Table 6 provides descriptive statistics for the constructs, along with their correlations for the South Korean Brand S data set. Similar to the American Brand A, the highest average rating score was brand awareness (3.830), followed by perceived quality (3.790) and information seeking from influencers (3.411). Notably, for the South Korean Brand S data set, the average rating for brand awareness and perceived quality was lower than the average rating for the American Brand A whereas the average rating for information seeking from influencers was higher than the rating for the American Brand. Finally, the average level of purchase intention for the South Korean Brand S smartphones was just moderate (3.415), much lower than the average level of purchase intention for the American Brand A. There is

18 Paper no. P1080 Page 16 of 23 significant positive relationship between all independent variables and purchase intentions at a significance level of Table 6 Descriptive Statistics and Correlations The South Korean Brand S Variable Brand Awareness Perceived Quality Influencers Purchase Intention Brand Awareness 1.00 Perceived Quality 0.582** 1.00 Influencers 0.326** 0.343** 1.00 Purchase Intention 0.585** 0.508** 0.350** 1.00 Mean Standard Deviation * p < 0.05, ** p < 0.01 Hypothesis Test Results To accomplish the research objectives, regression analysis was selected as a tool to test the hypothesized relationships. In the statistical procedures of multiple regression analysis, outliers, heteroscedasticity of residuals and multicollinearity were also examined to ensure that violation of assumptions underlying multiple linear regressions was not present and the estimate of the regression coefficients was not biased. Outliers that were eliminated from regression analysis were the cases with the externally studentized residuals of greater than the ±3.0 cutoff value, and the number of these outliers did not exceed five percent of the total number of observations. The results of the regression analyses are summarized in Table 7. The regression model is statistically significant at the significance level of 0.01 (p-value = 0.000). The model

19 Paper no. P1080 Page 17 of 23 explains approximately 42% of the sample variance of the respondents purchase intention of smartphones (R 2 = 0.419). Moreover, the tolerance value = 1-R 2 = = is greater than 0.1 so there was no multicollinearity between variables. Table 7 Results of OLS Regression Analysis (Dependent Variable = Purchase Intention) Variables beta coefficients t p-value (Constant) Brand Awareness Perceived Quality Influencers Brand Brand Awareness x Brand Perceived Quality x Brand Influencers x Brand R 2 = 0.419, F-statistic = , p-value = Based on the regression analysis, there was a positive relationship between brand awareness and purchase intention at a significance level of 0.01 (b = 0.614, t = 6.965, p-value < 0.01). Therefore, Hypothesis 1 was supported. The relationship between perceived quality and purchase intention was also positive at the significance level of 0.01 (b = 0.303, t = 3.579, p-value < 0.01). Hypothesis 2 was also supported. In addition, there was a positive relationship between information seeking from influencers and purchase intention at a significance level of 0.01 (b = 0.183, t = 2.640, p-value < 0.01). Consequently, Hypothesis 3 was supported. In the regression analysis, the researchers also added a dummy variable (American Brand A = 1, South Korean Brand S = 0) and the interaction of each independent variable and brand origin to assess the moderating effect of different brand origins and test Hypotheses 4, 5

20 Paper no. P1080 Page 18 of 23 and 6. First, the beta coefficient of the interaction between brand awareness and the specific brand was evaluated. Since the beta coefficient was significant and negative at the significance level of 0.01 (b = , t = , p-value < 0.01), this indicated that the positive relationship between brand awareness and purchase intention was weaker for the American Brand A than for the South Korean Brand S. Hypothesis 4 was therefore supported. As for testing Hypothesis 5, the difference of the brand origin did not have any significant influence on the relationship between perceived quality and purchase intention at the significance level of 0.05 (b = 0.146, t = 1.120, p-value > 0.05). Therefore, Hypothesis 5 was not supported. Similarly, the difference of the brand origin did not influence on the relationship between information seeking from influencers and purchase intention of smartphones at the significance level of 0.05 (b = , t = , p-value > 0.05). Thus, Hypothesis 6 was not supported. DISCUSSION AND CONCLUSION The main purpose of this study was to determine and investigate possible factors that might influence purchase intention of American and South Korean smartphones. In addition to testing hypotheses to evaluate the influence of brand awareness, perceived quality and information seeking from influencers, the researchers also investigated a potential impact of different brand origins by comparing the American Brand A and the South Korean Brand S. According to the results of hypothesis testing, brand awareness is a factor that is important in the consumers decision-making process. The positive relationship between brand awareness and purchase intention indicates that if consumers recognize the brand and think of it on top of their mind for a specific product category, then they will be likely to have an intention to purchase a product of that brand. Secondly, perceived quality is another important factor that influences consumers to purchase products. The higher the level of perception on the quality

21 Paper no. P1080 Page 19 of 23 of the products such as functions, design and value for money, the greater the chance the consumers will intend to buy the products. Thirdly, influencers involve families, friends and product endorsers who can play an important role in providing information and stimulating the consumers purchase intention. Finally, a country-of-brand-origin can also moderate the impact of brand awareness on purchase intention. Based on the results of this study, the effect of brand awareness on purchase intention is higher for South Korea than U.S.A. This is probably caused by South Korea s extensive investment in building its country brand in the recent decade, with a lot of emphasis on the use of social media to promote its culture and increase social relationship and engagement. Surprisingly, the difference between brand origins does not influence the relationship between perceived quality and purchase intention. Although U.S.A. is very well known as a leader in technological innovation, the American brand origin does not have a significant impact on the linkage between perceived quality and purchase intention of smartphones. CONTRIBUTION AND MANAGERIAL IMPLICATIONS The major contribution of this study lies in the investigation of the effect of different brand origins on the direct relationship between brand awareness, perceived quality and information seeking from influencers, and purchase intention. The results confirm that a brand origin does matter when it comes to consumers information processing leading to their intention to purchase specific products. More specifically, the micro image of a brand origin related to a specific product category can increase the impact of brand awareness of the specific product on purchase intention. The researchers have established several implications that might be useful for smartphone companies. The research results indicate that brand awareness, perceived quality and the influencers are influential factors which impact purchase intention. Therefore, companies should invest in necessary resources to increase brand

22 Paper no. P1080 Page 20 of 23 awareness and improve product quality in terms of functions and design. Moreover, people nowadays tend to socialize more both online and offline in their lives. More socializing tends to create positive and negative word-of-mouth amongst friends, family and on the Internet. Thus, companies should launch more creative and innovative advertisements through various kinds of social media that attract people s attention. Furthermore, an effective follow-up service can be provided, so that it can meet or exceed consumer expectations, and create positive word-of mouth reports about the companies. LIMITATION AND DIRECTION FOR FUTURE RESEARCH The results of this empirical study should be interpreted with caution because the research examined only the consumers in Thailand, which raises a question about the generalizability of the findings to other countries. Replications of the study are therefore needed to further develop the research model. Second, this study addressed brand awareness, perceived quality and influencers only. Other factors related to marketing strategies might be influential predictors which help explain more about consumers purchase intention of smartphones. Future research may add more variables to obtain a more holistic understanding of purchase and may probe deeper in dimensions of brand origins.

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