The influence of the country‐of‐origin image, product knowledge and product involvement on consumer purchase decisions: an empirical study of insurance and catering services in Taiwan

Abstract

Purpose: The main purpose of this study is to explore the influence of the country‐of‐origin image, product knowledge and product involvement on consumer purchase decision. Design/methodology/approach: Taiwan, China and the USA were the three countries selected for research into the country‐of‐origin, insurance and catering services. Structured questionnaires and convenience sampling were used. Samples were collected from consumers in the Taipei area. A total of 400 questionnaires were distributed with convenience sampling method, and 369 effective samples were collected, the effective rate being 92.25 percent. Stepwise regression analysis was adapted to test hypothesis. Findings: The main findings were listed as follows: the country‐of‐origin image, product knowledge and product involvement all have a significantly positive effect on consumer purchase decision; the country‐of‐origin image has a significantly positive effect on consumer purchase decisions under different product involvement; and product knowledge has significantly positive effect on consumer purchase decisions under different product involvement. Research limitations/implications: Limitations of the study are: it is unable to infer to national consumers and to other service areas and the explanatory power of some empirical models is relative low. Implications of the study are that: a more thorough structure about consumer purchase decisions should be provided and the relationship between product knowledge and information search quantity should be verified. Practical implications: Practical implications pf the study are that the company must face competitive strategies from many countries and also the effect of consumer product knowledge on business competitive strategy. Originality/value: The added value of this paper is to link between theory and practice, and explore the different country‐of‐origin image, product knowledge and product involvement on consumer purchase decisions.