The effect of country image on foreign product purchase intention: The mediating role of product image, perceived prestige, perceived quality, and willingness to pay

Abstract

South Korea's global reputation, characterized by technological innovation, high-quality standards, and a strong work ethic, has led to a high demand for products that embody these characteristics. The rise of technology and e-commerce has facilitated international trade, and South Korea's capacity to manufacture widely distributed goods has further enhanced its global standing. This study examines the correlation between customers' willingness to pay and their overall propensity to purchase foreign items, considering their perception of a country's image. It employs a quantitative explanatory approach, utilizing primary and secondary data collected through a Likert scale. Data analysis is conducted using SmartPLS to assess validity, reliability, and the influence between variables. The purpose of this research is to analyze willingness to pay (WTP) and individual perceptions of perceived quality concerning the purchase of environmentally friendly products in developing economies. The findings indicate that a country's image positively influences product image, perceived prestige, and willingness to pay. Specifically, a country's image significantly impacts the intention to purchase foreign products. Consumers’ willingness to pay for environmentally friendly products is influenced by consumer characteristics, beliefs, behaviors, strategic messaging, and market dynamics. In developing economies, the benefits of environmentally friendly products are a crucial factor in determining willingness to pay. The results demonstrate that a country's image has a significant impact on product image, perceived prestige, perceived quality, and willingness to pay.