Improvement of Indonesia Local Product Sale Value Based On Enthnocentrism Behavior

Abstract

At a time when competition is getting tighter and financial difficulties, the company is very interested in consolidating its position in the domestic market. Therefore, many companies in Indonesia insert the motto "Love domestic products" in every opportunity the advertisement is posted. This sentence motto insert is expected to inspire Indonesian consumers not to be ashamed to use Indonesian products, and believe that Indonesian products also have qualities that are not inferior to those produced by foreign companies.

The relationship between domestic companies and domestic customers has become an object of strong interest in the business and academic world (Cleveland et al., 2009; Shankarmahesh, 2006; Chao et al., 2005; Kaynak and Kara, 2002). Especially in Indonesia, there is a unique fact that Indonesian consumers like overseas products (marketing.co.id). Therefore, this study will examine the increase in the selling value of Indonesian local products based on ethnocentrism behavior. Ethnocentrism is defined (Shimp and Sharma, 1987, 280) as beliefs held by consumers about conformity and morality, in purchasing foreign-made products.

The aim of the research is to find out the characteristics of local Indonesian cosmetic users and to know the factors that influence local Indonesian cosmetic users. It is hoped that this research can enrich the knowledge of knowledge related to the use of local Indonesian cosmetics that can boost Indonesia's cosmetic income. In addition, the results of this study can be used not only in the local cosmetics industry but can be applied in various other commercial business entities as well as in non-commercial business entities.

The research method used is non probability sampling in major cities in Indonesia. Analysis of data processing using multiple regression with SPSS 20.00 software. The results of this data processing will be carried out in-depth discussion about the characteristics of local Indonesian cosmetic users and find out the factors that influence local Indonesian cosmetic users.

Keywords: Indonesian Local Cosmetics, Ethnocentrism, Purchase Intention