Beyond Country Labels: How Brand Equity and Social Status Shape Purchase Intention

Abstract

The rapid development of information technology has made smartphones one of the important tools in supporting one's needs. Understanding how smartphone products influence consumers’ purchase intention in their country of origin can help technology companies in Indonesia develop more effective strategies for marketing their products in the Indonesian market. Therefore, this study aims to discuss and examine the influence of Country of Origin (COO) on Purchase Intention through Brand Equity and Social Status. The method used in this study is quantitative research with a descriptive exploratory research type. Data were collected by distributing questionnaires, and data were obtained from 200 respondents. Data were analyzed using descriptive statistical analysis and inferential statistics using Partial Least Square (PLS). The results of the study indicate that COO directly influences Purchase Intention, Brand Equity, and Social Status positively and significantly. In addition, it was also found that COO indirectly influences Purchase Intention positively and significantly through Brand Equity and Social Status. Based on these findings, it can be said that COO can influence Purchase Intention both directly and indirectly. Therefore, business actors should leverage favorable country-of-origin associations to increase Purchase Intention.