Factors Affecting Consumers' Intention to Buy Foreign Brands - An Empirical Survey in Serbia
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.
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