South Korea, China, and Japan have played an important role in Asia. The proportion of these three countries in the world economy trade is 17.5%. Especially, China is Japan’s and Korea’s biggest trading partner. Statistics from Japanese customs au...
South Korea, China, and Japan have played an important role in Asia. The proportion of these three countries in the world economy trade is 17.5%. Especially, China is Japan’s and Korea’s biggest trading partner. Statistics from Japanese customs authorities showed Japan's exports to China amounted to 73.54 billion U.S. dollars in the first half of the year, while imports from China totaled 91.29 billion U.S. dollars during the period. South Korea has been running a trade surplus with China, which hit a record US $32.5 billion in 2009.
Economic and trade cooperation requires good political environmental factors. Good political environment and bilateral ties are foundation to bilateral as well as multilateral economic and trade relations.
However, the Japan government's so-called "purchase" of the Diaoyu Islands has a negative impact on China-Japan economic and trade ties. Citizens in main land China participated in protest marches and called for a boycott of Japanese products in as many as 85 Chinese cities, including Shanghai, Shenyang, Zhengzhou, Hangzhou and Haerbin, as well as HongKong Demonstrations escalated to arson of Japanese vehicle and other criminal acts in Beijing, Shenzhen, Guangzhou, Changsha, Suzhou, Mianyang, Xi'an and Qingdao.
On the other hand, Korea-wave has considerable positive impact on the China-South Korean economy and trade ties. Especially, China was one of the first places where the phenomenon occurred. In 2006, South Korean programs on Chinese government TV networks accounted for more than all other foreign shows combined. In addition, Korean music has mass appeal in the Chinese and Taiwanese markets such as clothing, food, games, and consumer electronic products.
These phenomena have explained through the country-of-origin effect. Country of origin effect has been found to influence consumer’s evaluations of foreign products on two dimensions: perceptions of quality, and perceptions of purchase intention.
Based on the above discussion, in this research, a conceptual model is designed showing the influence of country image and brand image on consumers' perceived quality and purchase intention. The study investigates the chinese consumers' perception on electronic products including Camera and laptop by Japan’s Sony and South Korea's Samsung, respectively.
The survey was initially generated in Korean and was translated into Chinese by professional translators. Total of 300 questionnaires were distributed and 200 were collected. Among collected questionnaires 165 were used for the analyses in this study.
The research model has nine constructs with interrelated dependence relationships or causal paths, requiring a structural equation modeling (SEM) analysis. SEM analysis requires constructs to be assessed rigorously by confirmatory data, to examine convergent and discriminant validity. CFA results were obtained using the software package AMOS.
The empirical results from the model are as follows:
First, country-of-origin effect has significant impact on the products perception of chinese consumer. In the Korea case, cultural factors and economic/technical factors affect positive perception of product. On the other hand, country-of-origin effect of Japan, only the economic/technical factors has a positive influence on the perception of the product. But the political/social factors has a negative impact on functional factors. These results imply that recent anti-Japanese sentiments impact negatively on the perception to Japan’s product.
Second, to chinese consumer, Samsung brand has a strong symbolic image and Sony brand has a strong utilitarian image. Through this result, each company brand has their own brand image which affects consumers.
Third, service factors were analyzed that has more significant impact on the recommendations than purchase intention, which means Chinese consumers consider word of mouth to purchase product. In this sense, firms take care of service factors as well as the product quality.