Management: Journal of Sustainable Business and Management Solutions in Emerging Economies 2022/27(2)

Dragana Tomašević*, Dragana Gašević, Marija Vranješ

Novi Sad School of Business, Novi Sad, Serbia

Factors Affecting Consumers' Intention

to Buy Foreign Brands - An Empirical
Survey in Serbia
DOI:10.7595/management.fon.2020.0020

Abstract:
Research question: The purpose of this paper is to analyze the factors that influence consumers' intentions when buying
foreign brands, and then the purchase itself. Motivation: The business environment is experiencing an extensive change
and it has become very demanding for companies to retain customers as well as market share. Companies must learn to
adapt to changes in order to survive in the market, and therefore need to be aware of the needs of their customers and
their purchasing decisions. The rise in consumer awareness has led consumers to opt for well-known and high-quality
foreign brands. Hence, if companies hope to outperform their competitors, they need to persuade consumers to purchase
their products and brands. Idea: The main objective of the research is to be based on previous research in this field to find
out whether perceived quality, prestige, perceived value and environmental impact affect the intention of domestic
consumers to buy foreign brands, and consequently the purchase of these foreign brands. Data: The survey was
conducted on the territory of the Republic of Serbia by means of a questionnaire and included 158 respondents. Data were
collected from the respondents electronically during a period of about one month. Tools: Statistical analyses of all collected
data (utilizing linear correlation, multiple regression analysis, t-test of sample independence and ANOVA) were used to draw
conclusions about the relationships between the observed variables and to determine differences in the mean values
between individual categories of respondents in terms of buying foreign brands. Findings: Multiple regression analysis
confirmed the statistically significant influence of perceived quality and perceived value on the intention of consumers in
Serbia to buy foreign brands. Other factors do not have a statistically significant effect on consumer intention. Also, a
simple regression analysis revealed a statistically significant influence of consumer intention on the act of purchase. At the
very end of the paper, it was determined that statistically significant differences regarding the purchase of foreign brands
existed when respondents were observed by gender and education levels, while age did not have a statistical significance.
Contribution: This research has a scientific and practical contribution in terms of collecting information about the factors
that influence the consumers` intension to buy foreign brands.

Keywords: brand, customer, intention, buying foreign brand

JEL classification: M31, M21

1. Introduction

The process of globalization has resulted in the development of global marketing across the globe. Glob-
alization allows the users to choose among products from various countries. Therefore, in a growing global
economy, brand is gaining in importance. A brand is a very important asset (Gunter & Kriegbhaum-Kling,
2001). A symbol, sign and name of the product create the brand. Choosing a brand is a very important de-
cision made by customers. Companies try to increase their brand image in different ways, as image in-
creases brand loyalty and greater brand loyalty leads to re-purchase. The connectivity of different brand
theories suggests that branding is a tool that links customers with the company and helps in maintaining
such a relationship in the long term (Chang & Chieng, 2006; Davis et al., 2000). The brand enables cus-

*
Corresponding author: Dragana Tomašević, e-mail: dragana.vps@gmail.com

1
 Dragana Tomašević, Dragana Gašević, Marija Vranješ 2022/27(2)

tomers to make the right choice that meets their wishes and needs for any product or service. A number of
researchers have developed various models, theories and frameworks to establish how brands influence
consumer behaviour from different aspects. Macdonald and Sharp (2000) point out that while consumers
are aware and inclined to buy a product, brand awareness is still a dominant factor influencing their final de-
cision to buy a particular product. Products with greater brand recognition will have a higher market share
and a higher quality score. Suh and Kwon (2002), on the other hand, believe that impact of globalization
should not be neglected. Not all consumers are contented with globalization. In addition, the abundance of
foreign products is said to contribute to the negative feelings of local consumers towards foreign brands
(Shimp & Sharma, 1987). In addition, consumers who associate political happenings with regard to prod-
uct purchases become hostile to products from these countries (Klein et al., 1998). Thus, growing global-
ization requires from marketers to fully understand the reactions of foreign consumers to their brands.

Consumer behaviour is a complex process associated with numerous activities: searching, selecting, buy-
ing, using and evaluating products and services to fulfill different needs and desires. Various internal and ex-
ternal factors influence customer behaviour (Komal Prasad & Jha, 2014). The whole buying decision-making
process involves considering the type of a product, quality of a brand, place, time and time spent on shop-
ping. Accordingly, the direct result of customer behavior is the final decision on product and brand selec-
tion, quantity, timing and frequency of purchase (Khaniwale, 2015).

2. Literature Overview

2.1. Perceived quality

In marketing literature, perceived quality is widely recognized as a major driver of consumer intention to buy
a product (Calvo-Porral & Levy-Mangin, 2017; Olson & Jacoby, 1972). Perceived quality is defined as the
opinion of consumers whether a product or brand can fulfill their expectations. Therefore, if consumers feel
that a particular brand can meet their expectations, they will certainly buy it (Kocic et al., 2016). Thus, per-
ceived quality is determined by consumers' subjective assessment of the product (Hazen et al., 2017; Konuk,
2018; Zeithaml, 1988). Bhuian (1997) regards the perceived quality to be an estimate of the consistency of a
product specification or an estimate of the added value of a product. Brand quality is defined as recognizing
the quality of a product, which affects consumer buying. Garvin (1983) suggests that perceived quality can
be explained as the recognition by consumers, whereas objective quality is defined due to product or pro-
duction orientation. The distinction between objective and perceived quality are reflected in the fact that stan-
dards for pre-product quality exist for objective quality, and perceived quality is determined by the internal and
external qualities of the product, which is the basis for consumer evaluation (Zeithaml, 1988). Perceived qual-
ity is the consumer's assessment of the product's accumulating advantages and a personal sense of prod-
uct quality (Dodds et al., 1991; Zeithaml, 1988). As Aaker (1996) states, the perceived quality can indicate a
visible distinction of a product or service and become the basis for brand selection in the mind of consumers.
In a holistic approach, Sirieix and Dubois (1999) reflected on the perceived quality of a product as "an esti-
mate made by the consumer relying on the internal as well as the external dimensions of the product or serv-
ice". Perceived quality is defined as the consumer's assessment of overall brand excellence based on internal
(performance and durability) and external attributes (brand name) (Kirmani & Baumgartner, 2000). Consumers
believe in brand and labels as signs of product quality. Consumer appreciation of brand quality replaces
price when making a purchasing decision (Dodds et al., 1991). Thus, quality is an assessment of the overall
excellence or superiority of a product or service, because quality can be defined at the moment when the con-
sumer assesses the product's characteristics, during purchase or consumption. If a certain product stands
out from the competition ones, consumers start to see it as unique and rare. This implies that when the con-
sumer on many occasions differentiates the product from the products made by competitors, then the prod-
uct becomes recognizable and the perceived quality of the product can be seen as an intermediary variable
that is likely to affect the consumer's purchase. A better perception of quality leads to higher profits and long-
term growth of a business, which further includes expanding markets and increasing market share.

2.2. Brand prestige

The notion of prestige can mean different things for different consumers.The general premise is that presti-
gious brands require higher level of interest of the buyer himself and are strongly associated with a self-
concept of individual buyers. Consumers' perceived prestige for a brand is created from a multitude of
interactions between consumers and different environmental factors, so consumers are expected to have
different perceptions of how prestigious the same brands are. Consumers gain the meaning for brand pres-
tige through interaction with people (e.g., peer group), item characteristics (e.g., best features), and hedo-

2
Management: Journal of Sustainable Business and Management Solutions in Emerging Economies 2022/27(2)

nic values (e.g., visible beauty) (Vigneron & Johnson, 1999). Brand prestige is an expression of apprecia-
tion brought by higher or lower social status defined by life experience, knowledge and awareness of com-
peting brands (O'Shaughnessy & O'Shaughnessy, 2002). Brand prestige represents the relatively high status
of product positioning associated with the product brand (Steenkamp et al., 2003). Uniqueness, related to
a particular feature or to the overall product quality and performance of a product, is a main criterion based
on which a brand can be considered prestigious (Dubois & Czellar, 2002). Compared to non-prestigious
brands, prestigious brands not only provide intangible benefits to consumers, but create value for the con-
sumer through status and expressed consumption. Accordingly, some researchers have implied that con-
sumers may think of foreign brands as more prestige with because it is hard to find them and they cost
more than the local brands (Batra et al., 2000; Bearden & Etzel, 1982).

Brand prestige is directly related to perceived quality. Steenkamp et al. (2003) found that the consumer value
of a global brand was positively related to brand prestige and perceived brand quality. Their results showed
that brand prestige significantly influences purchase intent. Vigneron and Johnson (1999) concluded that there
are five values consumers seeking prestige usually desire: perceived striking value (to indicate wealth and sta-
tus of a brand owner status), perceived unique value (related to scarcity), perceived social value, perceived he-
donic value and perceived quality value. The first three values are related to social effects and the last two
values are related to personal effects. Vigneron and Johnson (1999) clearly state that it is justifiable to explain
that consumers expect quality (perceived value of quality) when they opt for famous brands. Wong and Zhou
(2005) find that purchase decision are influenced by perceived brand prestige especially with the product cat-
egories bearing high social value. Because prestigious brands have the status of high-quality products, con-
sumers do not put much effort to obtain product information necessary to make a purchasing decision. Thus,
the cost of information regarding a purchasing decision would be reduced when consumers perceive brands
as prestigious (Baek et al., 2010). Therefore, consumers find prestigious brands valuable because, in their
opinion, such brands are linked to higher social status, which affects their decision on purchasing these brands.

2.3. Perceived value

Preferred value is an important factor when deciding on a purchase. It is an assessment of the usefulness
of a product in terms of value (money) spent by the customer and the value (satisfaction and utility) he or
she gets from it (Gan & Wang, 2017; Zeithaml, 1988). In the process of creating the perceived value of a par-
ticular product or service, the most important role is played by the benefits and costs that the consumer per-
ceives in the process of purchasing that product or service (Pandza, 2012). Value implies a set of different
benefits that consumers receive by investing cash, time and energy in the procurement and consumption
of a product and / or service (Sapic et al., 2014).The total value for the buyer is the monetary value that is
made up of the economic, psychological and functional benefits that the buyer expects from the offer. The
total cost to the buyer is the total perceived cost that the buyer expects during the assessment, procurement,
use and disposal of the offer, including monetary, time, energy and psychological costs (Boras, 2018). Dodds
and Monroe (1985) also find that consumers will personally estimate what they give and what they receive
when purchasing a product / service. In accordance with the utility theory, it is highly likely that the con-
sumers will decide to buy a product if they get more convenience than they pay for the product (Dickson &
Sawyer, 1990). According to Woodruff (1997), perceived value is the result of the benefit that customers re-
ceive over the price paid for a product / service. Consumers cannot clearly and accurately identify all the ben-
efits offered by products / services, nor the financial investments needed to procure and consume them, so
they rely on their valuation when determining value (Sapic et al., 2014). If consumers acquire trusted per-
ceived value while consuming products / services, it will result into a good brand image, loyalty, profit and
competitiveness. Several authors state that perceived value influences customer satisfaction, loyalty, and
other important actions (Cronin et al., 2000). Also, some authors conclude that perceived value is positively
related to purchase intentions (Chen et al., 2017; Pham et al., 2018). Earlier research shows that perceived
limited product offerings increase consumer value and brand preference (Verhallen, 1982). This attitude is
supported by the understanding of Solomon (1994) that items with limited supply are of high value, while
those readily available are less desirable. Therefore, consumers generally consider high value products to
be rare and unique, and the shortage of such products greatly stimulate the demand.

2.4. Environmental impact

It is of great importance to mention another factor that can have an impact on purchasing foreign brands,
that is, the influence of environment. To be more precise, it denotes a change in the behaviour that happens
due to the influence of other people, intentionally or unintentionally. Gladwell (2000) states that new prod-
ucts or trends are designed by creative innovators. Then come the early adopters, followed by an early ma-

3
 Dragana Tomašević, Dragana Gašević, Marija Vranješ 2022/27(2)

jority. At this point, a large number of people are already consuming the idea or product, and the normative
and informative influence urges others. As Gladwell explains, the early majority is followed by the so-calle,
late majority, and then finally there is the group called backlog, typically very conservative and resistant to
change. A study conducted by Ergin et al. (2010) found a statistically significant influence of the environment
(others) on the consumer's intention to buy foreign brands. Therefore, this factor should not be neglected
when trying to explain the intention of consumers in Serbia to buy foreign brands.

2.5. Purchase intention

Purchase intention is measured as a dependent variable that depends on various external and internal fac-
tors. It is the conscious plan of an individual to buy a certain brand of product. The intention to buy refers to
the estimation how probable it is that consumers will or at least will be ready to buy a certain product or serv-
ice in the future. Increasing purchase intention implies increasing purchasing opportunities (Dodds et al.,
1991; Schiffman & Kanuk, 2007). If there is an intention to buy a particular brand, then an evaluation of all
brands available in the market is required (Teng et al., 2007). The intention to buy is a probability that a cer-
tain product will be bought (Dodds et al., 1991). There is a high correlation between intentions and actual
behavior. Rana and Paul (2017) concluded that purchase intention is positively correlated with consumer be-
haviour and attitude. The stronger the intention to undertake a particular type of behaviour, the more likely
it is that the behaviour will be put into action (Sapic, 2017). Having consumers with a positive purchase in-
tention creates a customer loyalty to a certain brand that drives consumers to the actual act of buying.

3. Research Methodology

The subject of research in this paper is to examine the factors that influence the intention of domestic con-
sumers when buying foreign brands. The main objective of the research is to find out whether perceived qual-
ity, prestige, perceived value and environmental impact affect the intention of domestic consumers to buy
foreign brands, and consequently the purchase of these foreign brands. The defined subject and the aim of
the research have been set on the basis of previous research in this field, in which the above mentioned fac-
tors were used (Ergin & Akbay, 2010; Hanzaee & Taghipourian, 2012; Rodrigo et al. 2019; Sapic et al., 2018).

Empirical research was conducted by data collecting and analysis. Based on the previous studies men-
tioned, a selection of the findings was modified and included in the questionnaire. The questionnaire is
structured so that in addition to general data on respondents such as gender, age, education and level of
monthly income, it also contains findings that determine the factors that influence the intention of domestic
consumers when buying foreign brands. Respondents expressed their level of agreement in the question-
naire using a five-step Likert scale (1 – strongly disagree, 5 - strongly agree), which is one of the most com-
monly used techniques for answering and drawing concrete conclusions in this type of research.

Perceived quality was analyzed in the questionnaire using the first six findings (Ergin & Akbay, 2010; Han-
zaee & Taghipourian, 2012). Brand prestige was analyzed through findings 7 - 10 (Ergin & Akbay, 2010;
Hanzaee & Taghipourian, 2012), while environmental or other influences were evaluated based on findings
12 - 15 (Ergin & Akbay, 2010). The last factor, perceived value, has been evaluated through findings 16 - 18
(Ergin & Akbay, 2010; Hanzaee & Taghipourian, 2012). Consumer intent, as a dependent variable (variable),
in this research was tested through findings 19 - 21 (Rodrigo, Kahn & Ekinci, 2019; Sapic, Furtula & Filpovic,
2018), while purchases were valued through the last two findings 22 and 23 (Sapic, Furtula, & Filipovic,
2018).

In accordance with the defined goal and the subject of the research, the authors set and tested the follow-
ing hypotheses:
H1: Perceived quality has a statistically significant effect on the intention of domestic consumers to pur-
chase foreign brands.
H2: Brand prestige has a statistically significant effect on the intention of domestic consumers to purchase
foreign brands.
H3: The environment has a statistically significant influence on the intention of domestic consumers when
buying foreign brands.
H4: Perceived value has a statistically significant effect on the intention of domestic consumers to purchase
foreign brands.

4
 Management: Journal of Sustainable Business and Management Solutions in Emerging Economies 2022/27(2)

H5: The intention of domestic consumers to purchase foreign brands has a statistically significant impact on
the purchase of foreign brands.
Because the paper analyzes whether there is a statistically significant difference in the mean values between
individual categories of respondents (viewed by their demographic characteristics) in terms of buying for-
eign brands, the following hypotheses will be set and tested:
H6: There is a statistically significant difference between gender variable towards purchase of foreign brands.
H7: There is a statistically significant difference between the education variable towards purchase of foreign
brands.
H8: There is a statistically significant difference between the age variable towards purchase of foreign brands.

To determine the relationship between the observed variables, the hypotheses were tested using the results
of descriptive statistics, correlation analysis, as well as simple and multiple regressions. Statistical software
SPSS 19.0 was used to analyze the data collected.

Perceived quality
Brand prestige Consumer intent Buying Foreign
when buying foreign Brands
Environmental impact brands
Perceived value

Figure 1: Research model

4. Research Results and Discussion

In determining the factors that influence the intention of domestic consumers to buy foreign brands and
then the purchase itself, the interview method or questionnaire technique was used. Data were collected from
the respondents electronically in the period from 15.07. to 05.08.2019. In the aforementioned period, a total
of 158 respondents provided answers to the statements defined in the questionnaire. The demographic
characteristics of the respondents will be shown in the following table.

Table 1: Demographic structure of respondents (n=158).

Demographic characteristics Frequency %

Gender
Men 102 64.6
Women 56 35.4
Age
18-24 7 4.4
25-34 70 44.3
35-44 60 38.0
45-54 13 8.2
> of 55 8 5.1
Education
Lower 0 0
Secondary 51 32.3
Higher 9 5.7
High 49 31.0
Master/Magister/Doctor 49 31.0
Source: Prepared by the authors (SPSS 19.0)

Based on Table 1, it can be concluded that the participation of women in this survey (64.6%) is higher than
the participation of men surveyed (35.4%). If we look at the age structure, we notice the presence of almost
all age groups, with the most significant participation being people from 25 to 34 years (44.3%) and people
from 35 to 44 years (38.0%) of age. The smallest number of respondents is comprised of the youngest re-
spondents aged 18-24 (4.4%) and the oldest respondents over 55 years (5.1%) old. In terms of educational
structure, the participation of respondents with secondary education (32.3%) and respondents with higher
education and titles of masters and PhD (31% each) can be observed. There were no respondents with
lower education, while the participation of respondents with higher education was only 5.7%.

5
 Dragana Tomašević, Dragana Gašević, Marija Vranješ 2022/27(2)

In order to determine the homogeneity and heterogeneity of the respondents' attitudes regarding the inten-
tion to purchase foreign brands, a descriptive statistical analysis was performed and the arithmetic mean and
standard deviation for each statement included in the questionnaire were calculated. It can be observed
that the highest values of the arithmetic mean are the statements that belong to the perceived quality. Specif-
ically, the respondents agreed that the quality of a foreign brand is significant to them (M = 4.42), and that
the quality of a foreign product affects their positive attitude towards a foreign brand (M = 4.25). On the
other hand, the lowest average value was recorded when stating that the brands owned by the respondents
provided prestige, status and respect by members of society (M = 1.70). Similarly, for the two statements
with the highest average values, the most homogeneous attitudes of the respondents were observed. In
other words, the slightest deviation of the responses of each individual respondent from the average value
was observed when stating the importance of the foreign brand quality for them (SD = 0.933), while the
biggest difference in the answers of the respondents was observed in the statement that owning foreign
brands gives them status (prestige) in society (SD = 1.423).

Since all the findings are grouped into 6 variables, it is necessary to evaluate the reliability of the variables
so defined, as well as the internal consistency of the findings associated with those variables. For this pur-
pose, the author used the Cronbach's alpha coefficient. According to the results presented in Table 2, it is
observed that the value of this coefficient for all variables is above the recommended 0.7, indicating the cor-
responding reliability and consistency of the findings (Nunnally, 1978). It should also be noted that the reli-
ability coefficient for the entire model is 0.809.

Table 2: Cronbach alpha coefficient value

Variable Cronbach alpha coefficient

Perceived quality 0.790
Brand prestige 0.792
Environmental impact 0.783
Perceived value 0.747
Consumer intention 0.758
Buying foreign brands 0.804
Source: Prepared by the authors (SPSS 19.0)

Prior to applying the regression analysis, it is necessary to make a correlation analysis, i.e. to check the de-
gree of dependence between the six variables defined in the model. Based on the results presented in Table
3, we can conclude that there is a statistically significant correlation between all variables in the model and
that it is of moderate intensity. The correlation coefficient between consumer intent as a dependent variable
and all four independent variables (perceived quality, prestige, environmental impact, and perceived value)
is generally of moderate intensity and ranges from 0.3 to 0.6. It should be emphasized that the most signif-
icant degree of dependence, i.e. correlation, exists between the perceived value, as an independent variable,
and the intention of the consumer, as the dependent variable (r2 = 0.573).

Table 3: Correlation matrix

Variable 1 2 3 4 5 6
Perceived quality 1 0,349** 0,338** 0,418** 0,457** 0,403**
Brand prestige 0.349** 1 0.585** 0.595** 0.333** 0.174*
Environmental impact 0.338** 0.585** 1 0.588** 0.375** 0.193**
Perceived value 0.418** 0.595** 0.588** 1 0.573** 0.425**
Consumer intention 0.457** 0.333** 0.375** 0.573** 1 0.618**
Buying foreign brands 0.403** 0.174* 0.193** 0.425** 0.618** 1
** The correlation is statistically significant at the 0.01 level.
* The correlation is statistically significant at the 0.05 level.
Source: Prepared by the authors (SPSS 19.0)

After the correlation analysis was performed, multiple regression analyses were performed to confirm or re-
fute the research hypotheses. The following independent variables were used in the model: perceived qual-
ity, prestige, environmental impact, and perceived value, while consumer intention is set as the dependent
variable. Also, multi-collinearity, i.e. the presence of high dependence between independent variables, will
be tested, which often makes it difficult to examine the influence of independent variables on the depend-
ent variable. The results of the regression analysis are presented in the following table.

6
Management: Journal of Sustainable Business and Management Solutions in Emerging Economies 2022/27(2)

Table 4: Results of multiple regression analysis (dependent variable = consumer intention)

Variable ȕ T Sig. VIF
Perceived quality 0.268 3.796 0.000 1.244
Brand prestige -0.071 -0.834 0.406 1.797
Environmental impact 0.047 0.555 0.580 1.770
Perceived value 0.475 5.466 0.000 1.894
Source: Prepared by the authors (SPSS 19.0)

As can be seen, based on the results shown in Table 4, perceived value contributes most to predicting the
intention of domestic consumers to purchase foreign brands (β = 0.475, t = 5.466, p = 0.000) - H4 is con-
firmed. Multiple regression analysis found that perceived quality also significantly contributed to the pre-
diction of the dependent variable (β = 0.268, t = 3.796, p = 0.000) - H1 is confirmed, while brand prestige
and environmental impact did not have a statistically significant effect on the intention of domestic con-
sumers to purchase foreign brands (H2 and H3 are rejected). Also, we can conclude that the assumption
of multi-collinearity in the regression model is fulfilled, i.e. there are no independent variables that correlate
highly with each other. Specifically, the variation factor value ranges from 1.24 to 1.89, which is significantly
lower than the VIF cutoff value of 10.

In order to test the last set of research hypothesis, we will apply a simple regression analysis. Consumer
intention will be used as an independent variable in testing this hypothesis, while buying foreign brands will
be set as a dependent variable. The test results of this hypothesis will be presented in Table 5.

Table 5: Results of simple regression analysis (dependent variable = purchase of foreign brands)
Variable ȕ T Sig. VIF
Consumer intention 0.618 9.827 0.000 1.000
Source: Prepared by the authors (SPSS 19.0)

A simple regression analysis found that there was a statistically significant effect of the intention of domes-
tic consumers to purchase foreign brands (β = 0.618, t = 9.827, p = 0.000), and that there was no prob-
lem of multi-collinearity due to the presence of only one independent variable. Thus, we conclude that the
hypothesis of H5 is confirmed.

In addition to the above relationships, the paper analyzes whether there is a statistically significant difference
in the mean values between individual categories of respondents (viewed by their demographic character-
istics: gender, age and education) in terms of buying foreign brands. For this purpose, the T test of sample
independence was used to determine whether men and women differ in their purchases of foreign brands.
Also, one-factor analysis of variance (ANOVA) was used to determine whether age and educational status
affect the acquisition of a foreign brand. The results of these tests will be presented below.

Table 6: Results of Independent t-test (dependent variable: purchase, control variable: gender)
Control variable Levene's homogeneity test Independent t-test
F Sig. T Sig.
Gender 0.000 0.992 -3.125 0.002
Source: Prepared by the authors (SPSS 19.0)

Based on the results shown in Table 6, we can conclude that the variance of these two categories of re-
spondents is homogeneous (F = 0.000, p = 0.992), and that women and men differ significantly in terms
of buying foreign brands (t = -3.125, p = 0,002). So, we conclude that the hypothesis of H6 is confirmed.
Many previous research studies have concluded that gender has a significant impact on consumer pur-
chase intention (Chen, 2013, Omar et al., 2017).

Table 7: Results of one-way analysis of variance - ANOVA

(dependent variable:purchase, control variable: education)
Levene's test
Control variable ANOVA
homogeneity
F Sig. T Sig.
Education 1.086 0.357 4.405 0.005
Source: Prepared by the authors (SPSS 19.0)

7
 Dragana Tomašević, Dragana Gašević, Marija Vranješ 2022/27(2)

The results of the Leven test show that there is an equality of variance in the results in each of the five groups
of respondents observed by educational profile (F = 1.086, p = 0.375), and that the basic assumption for
the analysis of variance is fulfilled. Further analysis shows that there is a statistically significant difference be-
tween the mean values of buying foreign brands in the observed groups of educated status (t = 4.405, p =
0.005) – H7 is confirmed. In a subsequent comparison, the mean values of the second and fourth groups
of respondents were found to be statistically significant. In other words, respondents who have a college de-
gree differ significantly from those who have a university degree in terms of buying a foreign brand (MD =
-0.729, p = 0.003). Also, this result is in line with other research studies which showed that there is a statis-
tically significant relationship between education as control variable and consumers’ purchase intention
(Paul & Rana, 2012; Wang et al., 2020).

Table 8: Results of one-way analysis of variance - ANOVA

Levene's test
Control variable Welch
homogeneity
F Sig. F Sig.
Age 2.560 0.041 2.260 0.092
(dependent variable: purchase, control variable: age)
Source: Prepared by the authors (SPSS 19.0)

In this case, where the age of the respondents was used as a control variable and its influence on the pur-
chase of a foreign brand was determined, the results of the Leven test showed that there was no homogeneity
of variance in the results in each of the five groups of respondents by age (F = 2.560, p = 0.041), and that
the basic assumption for the analysis of variance was not fulfilled. The results of a robust Welch test that is
resistant to violating the assumption of homogeneity of variance (F = 2.260, p = 0.092) show the same.

Due to the impossibility of applying a one-factor analysis of variance in the previous case, the authors de-
cided to apply a non-parametric alternative, i.e. Kruskal-Wallis test (results will be shown in Table 9).

Tabela 9: Results of the Kruskal-Wallis test (dependent variable: purchase, control variable: age)
Chi-
Control Variable Sig.
Square
Age 8.535 0.074
Source: Prepared by the authors (SPSS 19.0)

The results of the Kruskal Wallis test shown in Table 9 show that there is no statistically significant difference
in foreign brand acquisition between the five different age groups (χ2 = 8.535, p = 0.074) – H8 is rejected.
Voung and Khanh Giao (2020) proved that the relationship between age as control variable and consumers`
purchase intention was not statistically significant.

Therefore, we conclude that certain demographic characteristics have a significant influence on the pur-
chase of foreign brands, that is, men and women, as well as persons with secondary and university educa-
tion differ in this point of view. Other groups also differ in terms of purchase, but these differences are not
statistically significant.

Conslusion

The main purpose and aim of this paper is to determine what factors drive domestic consumers to buy foreign brands. Based
on the selection of relevant literature from previous research, the influence of four factors affecting the intention of domestic
consumers in Serbia to buy foreign products has been analyzed, namely: perceived quality, prestige, influence of others (en-
vironment) and perceived value. Multiple regression analyzes revealed that there was a statistically significant effect of per-
ceived quality and perceived value on the intentions of domestic consumers when buying foreign brands. The statistically
significant impact of perceived quality on brand acquisition intention has been confirmed in many existing studies (Baek et
al, 2010; Erdem, & Swait, 2004; Ergin & Akbay, 2010; Hanzaee & Taghipourian, 2012; Sapic et al., 2018). Research con-
ducted by Ergin and Akbay (2010) and Thaler (1985) found a statistically significant effect of perceived value on consumer
intentions when buying foreign brands. The remaining two factors (prestige and environmental impact) do not have a statis-
tically significant effect on consumers' intentions in buying foreign brands and this finding is consistent with other research
studies (Chen et al., 2015; Jeng, 2016). Also, a statistically significant impact of consumer intentions on the act of buying for-
eign brands was determined, which is in line with a survey conducted in 2018 by Sapic et al. Finally, it was examined whether

8
 Management: Journal of Sustainable Business and Management Solutions in Emerging Economies 2022/27(2)

there was a statistically significant difference between different groups of respondents according to demographic character-
istics when it came to buying foreign brands. It was found that men and women had a statistically significant difference when
it came to buying foreign brands and that there was a statistically significant difference among respondents with different lev-
els of education. The effect of age groups on buying foreign brands is not statistically significant.

The results of this research can have a scientific as well as a practical contribution. With regard to the theoretical implica-
tions of this research, this paper has contributed to current studies related to determine factors affecting consumers` pur-
chase intention to buy foreign brands. The main contribution of this research lies in understanding the impact of the
perceived quality, the brand prestige, the environment and the perceived value on purchase intention, which all ultimately
lead to the purchase of foreign brands. The results of the research provide a contribution in terms of their practical appli-
cation. Namely, having in mind that there is a strong competition among domestic and foreign brands and among the for-
eign brands themselves, in a large number of products and services in every country, it is very important to understand
consumers’ attitudes and preferences when choosing brands in the buying process. For the managers of these foreign
companies is very important to understand the way consumers perceive the quality, the value and prestige of foreign
brands, as well as the way in which these perceptions affect their decisions to buy foreign brands. Thus, managers of for-
eign brands can develop and invest in these aspects of brands, create positioning strategies and provide an advantage
on the market, compared to competitive brands. The research that has been conducted also has some limitations. First,
the number of factors included in the research model is limited. Other factors influencing the intention to buy foreign brands
can be found in the literature, and further variables should be included in future research to further understand the inten-
tions of domestic consumers. Second, it is important to increase the sample size, in order to obtain a more uniform age
structure of the respondents, and then examine whether in this case there are statistically significant differences regard-
ing the purchase of foreign brands among different age groups.

REFERENCES

[1] Aaker, D.A. (1996). Measuring brand equity across products and markets. California Management
Review, 38(3), 102-120.
[2] Baek, T.H., Kim, J., & Yu, J.H. (2010). The differential roles of brand credibility and brand prestige in
consumer brand choice. Psychology & Marketing, 27(7), 662-678. DOI: 10.1002/mar.20350
[3] Batra, R., Ramaswamy, V., Alden, D.L., Steenkamp, J.B.E. M., & Ramachander, S. (2000). Effects of
brand local and nonlocal origin on consumer attitudes in developing countries. Journal of Consumer
Psychology, 9(2), 83–95.
[4] Bearden, W.O., & Etzel, M.J. (1982). Reference group influence on product and brand purchase
decision. Journal of Consumer Research, 9(2), 183-194. DOI:10.1086/208911
[5] Bhuian, S.N. (1997). Marketing cues and perceived quality: Perceptions of Saudi consumers toward
products of the U.S., Japan, Germany, Italy, U.K. and France. Journal of Quality Management, 2(2), 217-
234. DOI: 10.1016/S1084-85668(97)90004-3
[6] Boras, Z. (2018). Prediktori i ishodi ukljucenosti potrosaca u brend zajednicu (doktorska disertacija).
Split: Ekonomski fakultet.
[7] Calvo-Porral, C., & Lévy-Mangin, J.P. (2017). Store brands’ purchase intention: Examining the role of
perceived quality. European Research on Management and Business Economics, 23(2), 90-95. DOI:
10.1016/j.iedeen.2016.10.001
[8] Chang, P., & Chieng, M. (2006). Building consumer-brand relationship: A cross-cultural experience view.
Psychology & Marketing, 23(11), 927-959. DOI: 10.1002/mar.20140
[9] Chen, L. (2013). A Study of Green Purchase Intention Comparing with Collectivistic (Chinese) and
Individualistic (American) Consumers in Shanghai, China. Information Management and Business
Review, 5(7), 342–346. DOI: 10.22610/imbr.v5i7.1061
[10] Chen, M.H., Tai, P.N., & Chen, B.H. (2015). The relationship among corporate social responsibility,
consumer-company identification, brand prestige, and purchase intention. International Journal of
Marketing Studies, 7(5), 33-40. DOI: 10.5539/ijms.v7n5p33
[11] Chen, H.S., Tsai, B.K., & Hsieh, C.M. (2017). Determinants of Consumers’ Purchasing Intentions for the
Hydrogen-Electric Motorcycle. Sustainability, 9(8), 1447. DOI: 10.3390/su9081447
[12] Cronin, J.J., Brady, M.K., & Hult, G.T. (2000). Assessing the Effects of Quality, Value and Customer
Satisfaction on Consumer Behavioral Intentions in Service Environments. Journal of Retailing, 76, 193-
218. DOI: 10.1016/S0022-4359(00)00028-2
[13] Davis, R., Buchanan-Oliver, M., & Brodie, R.J. (2000). Retail Service Branding in Electronic Commerce
Environments. Journal of Service Research, 3(2), 178-186. DOI: 10.1177/109467050032006
[14] Dickson, P.R., & Sawyer, A.G. (1990). The price knowledge and search of supermarket shoppers.
Journal of Marketing, 54(3), 42-53. DOI: 10.1177/002224299005400304

9
 Dragana Tomašević, Dragana Gašević, Marija Vranješ 2022/27(2)

[15] Dodds, W.B. & Monroe, K.B. (1985). The Effect of Brand and Price Information on Subjective Product
Evaluations. Advances in Consumer Research, 12(1), 85-90.
[16] Dodds, W.B., Monroe, K.B., & Grewal, D. (1991). Effects of Price, Brand, and Store Information on
Buyers' Product Evaluations. Journal of Marketing Research, 28(3), 307-319. DOI:
10.1177/002224379102800305
[17] Dubois, B., & Czellar, S. (2002). Prestige brands or luxury brands? An exploratory inquiry on consumer
perceptions. Paper presented at the European Marketing Academy 31st Conference. Portugal:
University of Minho.
[18] Erdem, T., & Swait, J. (2004). Brand Credibility, Brand Consideration, and Choice. Journal of Consumer
Research, 31(1), 191-198. DOI: 10.1086/383434
[19] Ergin, E.A., & Akbay, H.O. (2010). Consumers Purchase Intentions for Foreign Products: An Empirical
Research Study In Istanbul, Turkey. International Business & Economics Research Journal (IBER), 9(10),
115-121. DOI: 10.19030/iber.v9i10.644
[20] Gan, C., & Wang, W. (2017). The influence of perceived value on purchase intention in social commerce
context. Internet Research, 27(4), 772-785. DOI: 10.1108/IntR-06-2016-0164
[21] Garvin, D.A. (1983). Quality on the line. Harvard Business Review, 61, 65-75.
[22] Gladwell, M. (2000). The Tipping Point: How Little Things Can Make a Big Difference, first published by
Little Brown. ISBN 0-316-31696-2.
[23] Gunther, T., & Kriegbaum-Kling, C. (2001). Brand Valuation and Control: An Empirical
Study. Schmalenbach Business Review, 53(4), 263-294. DOI: 10.1007/BF03396639
[24] Hanzaee, K.H., & Taghipourian, M.J. (2012). The effects of brand credibility and prestige on consumers
purchase intention in low and high product involvement. Journal of Basic and Applied Scientific
Research, 2(2), 1281-1291.
[25] Hazen, B.T., Boone, C.A., Wang, Y., & Khor, K.S. (2017). Perceived quality of remanufactured products:
construct and measure development. Journal of Cleaner Production, 142(2), 716-726. DOI:
10.1016/j.clepro.2016.05.099
[26] Jeng, S.P. (2016). The influences of airline brand credibility on consumer purchase intentions. Journal
of Air Transport Management, 55, 1-8. DOI: 10.1016/j.airtraman.2016.04.005
[27] Khaniwale, M. (2015). Consumer Buying Behavior. International Journal of Innovation and Scientific
Research, 14(2), 278-286.
[28] Kirmani, A., & Baumgartner, H. (2000). Reference Points Used in Quality and Value Judgements.
Marketing Letters, 11(4), 299-310. DOI: 10.1023/A:1008129011202
[29] Klein, J.G., Ettenson, R., & Morris, M.D. (1998). The Animosity Model of Foreign Product Purchase: An
Empirical Test in the People’s Republic of China. Journal of Marketing, 62(1), 89-100. DOI:
10.1177/002224299806200108
[30] Kocic, M., Marinkovic, V., & Alimpic, S. (2016). Merenje vrednosti brenda za potrosace: Empirijski dokazi
sa trzista prehrambenih proizvoda u Srbiji. Anali Ekonomskog fakulteta u Subotici, 35, 189-206.
[31] Komal Prasad, R., & Jha, M.K. (2014). Consumer buying decisions models: A descriptive study.
International Journal of Innovation and Applied Studies, 6(3), 335-351.
[32] Konuk, F.A. (2018). The role of store image, perceived quality, trust and perceived value in predicting
consumers’ purchase intentions towards organic private label food. Journal of Retailing and Consumer
Services, 43, 304-310. DOI: 10.1016/j.retconser.2018.04.011
[33] Macdonald, E.K., & Sharp, B.M. (2000). Brand Awareness Effects on Consumer Decision Making for a
Common, Repeat Purchase Product: A Replication. Journal of Business Research, 48(1), 5-15. DOI:
10.1016/S0148-2963(98)00070-8
[34] Nunnally, J.C. (1978). Introduction to Psychological Measurement. New York: McGraw Hill.
[35] Olson, J.C., & Jacoby, J. (1972). Cue utilization in the quality perception process. ACR Special Volumes,
167-179.
[36] Omar, N.A., Nazri, M.A., Osman, L.H., & Ahmad, M.S. (2017). The effect of demographic factors on
consumer intention to purchase organic products in the Klang Valley: An empirical study. Geografia:
Malaysian Journal of Society and Space, 12(2), 68-82.
[37] O'Shaughnessy, J., & O'Shaughnessy, N.J. (2002). Marketing, the Consumer Society and Hedonism.
European Journal of Marketing, 36(5/6), 524-547. DOI: 10.1108/03090560210422871
[38] Pandza, I. (2012). Proces nastajanja percipirane vrijednosti s fokusom na cimbenicima ponude
poduzeca. Market/Trziste, 24(2), 279-296.
[39] Paul, J., & Rana, J. (2012). Consumer Behavior and Purchase Intention for Organic Food. Journal of
Consumer Marketing, 29(6), 412–422. DOI: 10.1108/07363761211259223
[40] Pham, Q.T., Tran, X.P., Misra, S., Maskeliûnas, R., & Damasevicius, R. (2018). Relationship between
Convenience, Perceived Value, and Repurchase Intention in Online Shopping in
Vietnam. Sustainability, 10(1), 156. DOI: 10.3390/su10010156

10
Management: Journal of Sustainable Business and Management Solutions in Emerging Economies 2022/27(2)

[41] Rana, J., & Paul, J. (2017). Consumer behavior and purchase intention for organic food: A review and
research agenda. Journal of Retailing and Consumer Services, 38, 157-165. DOI:
10.1016/j.retconser.2017.06.004
[42] Rodrigo, P., Khan, H., & Ekinci, Y. (2019). The determinants of foreign product preference amongst elite
consumers in an emerging market. Journal of Retailing and Consumer Services, 46, 139-148. DOI:
10.1016/j.retconser.2018.04.012
[43] Sapic, S., Topalovic, S., & Marinkovic, V. (2014). Uticaj dimenzija percipirane vrednosti na lojalnost
klijenata. Ekonomske teme, 52(4), 401-417.
[44] Sapic, S. (2017). Efekti kosmopolitizma i tradicije na procene i namere korisnika usluga restorana brze
hrane. Ekonomski horizonti, 19(2), 81-93. DOI: 10.5937/ekonhor17020815
[45] Sapic, S.,Furtula, S., & Filipovic, J. (2018). Kvalitet i etnocentrizam kao prediktori kupovine inostranih
brendova. Rad prezentovan na Medunarodnoj naucno-strucnoj konferencija Razvoj poslovanja:
Ekonomski izazovi zemalja u tranziciji.
[46] Schiffman, L. G., & Kanuk, L. L. (2007). Purchasing behavior. New York: Pearson Prentice Hall.
[47] Shimp, T.A., & Sharma, S. (1987). Consumer Ethnocentrism: Construction and Validation of the
CETSCALE. Journal of Marketing Research, 24(3), 280-289. DOI: 10.1177/002224378702400304
[48] Sirieix, L. (1999). La consommation alimentaire: problématiques, approches et voies de recherche.
Recherche et Applications en Marketing, 14(3/99), 41-58. DOI: 10.1177/076737019901400303
[49] Solomon, M. R. (1994). Consumer Behavior (second edition). Boston, MA: Allyn and Bacon.
[50] Steenkamp, J.B.E. M., Batra, R., & Alden, D.L. (2003). How perceived brand globalness creates brand
value. Journal of International Business Studies, 34(1), 53–65. DOI: 10.1057/palgrave.jibs.8400002
[51] Suh, T., & Kwon, I.W.G. (2002). Globalization and reluctant buyers. International Marketing Review, 19(6),
663-680. DOI: 10.1108/02651330210451962
[52] Teng, L., Laroche, M., & Zhu, H. (2007). The effects of multiple-ads and multiple-brands on consumer
attitude and purchase behavior. Journal of Consumer Marketing, 24(1), 27-35. DOI:
10.1108/07363760710720966
[53] Thaler, R. (1985). Mental Accounting and Consumer Choice. Marketing Science, 4(3), 199-214. DOI:
10.1287/mksc.4.3.199
[54] Verhallen, T.M. (1982). Scarcity and Consumer Choice Behavior. Journal of Economic Psychology, 2(4),
299-322. DOI: 10.1016/0167-4870(82)90034-4
[55] Vigneron, F., & Johnson, L.W. (1999). A Review and a Conceptual Framework of Prestige-Seeking
Consumer Behavior. Academy of Marketing Science Review, 1(1), 1-15.
[56] Vuong, B.N., & Khanh Giao, H. N. (2020). The Impact of Perceived Brand Globalness on Consumers’
Purchase Intention and the Moderating Role of Consumer Ethnocentrism: An Evidence from
Vietnam. Journal of International Consumer Marketing, 32(1), 47-68. DOI:
10.1080/08961530.2019.1619115
[57] Wang, L., Wong, P.P., & Narayanan, E.A. (2020). The demographic impact of consumer green purchase
intention toward Green Hotel Selection in China. Tourism and Hospitality Research, 20(2), 210-222. DOI:
10.1177/1467358419848129
[58] Wong, A., & Zhou, L. (2005). Consumers’ motivations for consumption of foreign products: An empirical
test in the People’s Republic of China. U21Global Working Paper No. 004/2005.
[59] Woodruff, R.B. (1997). Customer Value: The Next Source for Competitive Advantage. Journal of the
Academy of Marketing Science, 25(2), 139-153.
[60] Zeithaml, V.A. (1988). Consumer perceptions of price, quality and value: A means-end model and
synthesis of evidence. Journal of Marketing, 52(3), 2-22. DOI: 10.1177/002224298805200302.

Received: 2019-11-26
Revisions requested: 2019-11-28
Revised: 2020-06-18 (2 revisions)
Accepted: 2020-08-02

11
 Dragana Tomašević, Dragana Gašević, Marija Vranješ 2022/27(2)

About the Authors

Dragana Tomašević
Novi Sad School of Business, Novi Sad, Serbia
dragana.vps@gmail.com

Dragana Tomašević is employed as a teaching assistant at the Novi Sad School of

Business. She completed her basic and master studies at the Department of European
Economics and Business at the Faculty of Economics, Subotica. She is currently a PhD
student in the study programme of Business economics, Marketing. Dragana Tomašević
has also been an active member of the Marketing team of the Novi Sad School of
Business for many years. She has eight years of experience in preparing and performing
exercises in courses: Consumer Behaviour, Business Economics, Fundamentals of
Economis and Business Statistics. She is the author of numerous papers published in
national and international conferences and leading national journals.

Dragana Gašević
Novi Sad School of Business, Novi Sad, Serbia
draganag.vps@gmail.com

Dragana Gašević holds a M.Sc. degree from the Faculty of Economics,

University of Novi Sad. She is a Ph.D. student at the Faculty of Economics,
University of Kragujevac. Since 2012 she has been employed as an assistant professor
at the Department of Business Economics at the Novi Sad Business School. As author
or coauthor, she published numerous papers in scientific journals and national and
international conferences.

Marija Vranješ
Novi Sad School of Business, Novi Sad, Serbia
vranjesmarija.vps@gmail.com

Marija Vranjes holds a M.Sc. degree from the Faculty of Economics, University of Novi
Sad. She is a Ph.D. student at the Faculty of Economics, University of Kragujevac. Since
2012 she has worked as an assistant professor at the Department of Business
Economics at the Novi Sad Business School. As author or coauthor, she published a
number of papers in scientific journals and national and international conferences.

12
 © 2022. This work is licensed under
http://creativecommons.org/licenses/by-nc-nd/4.0/ (the “License”).
Notwithstanding the ProQuest Terms and Conditions, you may use this content
in accordance with the terms of the License.