Reasons Why Consumers Buying Foreign Products more than Local Products


There are many companies producing and selling their products in local, regional, national and international markets as well (Why Consumers in Developing Countries Prefer Foreign Brands: A Study of Japanese Brands in Vietnam, 2018). From the customers of emerging market and developing country include that foreign products considered to as good quality. Thus this will be influencing customer buying behaviour in emerging and developing market on more foreign products than that of local products. This report will include critical evaluation on reason behind the foreign products are better perceived by emerging market consumer that local products.


As per the view of Thuy Hang Dao and von der Heidt, (2018) foreign product are those which are produced outside the country and sold in various other nations in way of earing revenue and profits. On the other hand domestic or local product means that product whose country of origin is local market only. Emerging market is that country which is at urge of growth and development within international market with help of their products and services. Thus emerging market is mostly regarded to as those markets which are having potential to sell international brands more than any other market. It is introduced that foreign products are more perceived by emerging markets consumer than local product. This means that customers of emerging market are more attracted towards international or foreign products than that of their local product market.

According to view of Frimpong, (2011) in one of the study customers of Vietnam which is developing country prefer Japanese product brands over their domestic brands (Why Consumers in Developing Countries Prefer Foreign Brands: A Study of Japanese Brands in Vietnam, 2018). This process of developing country consumer identified to as 3 main reason which are that of consumer based brand credibility, consumer based country image and consumer based brand equity. This finding was based on the above mentioned study conducted on 400 Vietnamese consumer with 2 Japanese brands named Honda and Sony using structural equation modelling (SEM). As per Bajaj, (2006) customers’ point of view brand is the credible and familiar which they are getting to experience in their everyday life so brand will be indicator for making decision in buying new

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