Universiti Teknikal Malaysia Melaka Failure Of Uppsala’s Model Due to Ethnocentrism, Animosity And Country of Origin Image ISMI RAJIANI Universiti Teknikal Malaysia Melaka

Uppsala model “psychic distance” companies expand first to market which is psychically close move further as their knowledge well-developed

Uppsala model for Indonesia culture language, religious customs close distance Malaysia as potential market

Indonesia vs. Malaysia Long-running spats from territorial boundaries to cultural ownership creating tension between the two neighboring countries negatively affect the intention to buy Indonesia product sold in Malaysia

“Buy Malaysian Product” campaign patriotism aimed at getting Malaysians to love, buy and used local products

Theoretical Framework Country of Origin Image Animosity Ethnoce-ntrism Unwillingness to Buy

Variables Definition COI : buyer’s attitudes and feelings toward the country , developed through contact, association, or past experience with the country, its people, and its products (Sahin, 2010). Animosity: the remnants of antipathy related to previous or ongoing military, political, or economic events"(Klein et al, 1998). Ethnocentrism: believe that buying a foreign product or foreign brand is not patriotic, and they tend to choose local products or local brands, regardless price or quality considerations (Shankarmahesh, 2006).

Methodology conducted in Melacca, Malaysia. convenience sampling method, 150 respondents purchasing various foods in supermarket with a-5-scale- Likert Scale, Structural Equation Modeling (SEM) Country of Origin six questions and Willingness to Buy was measured by five questions developed by Nakos & Hajidimitriou (2007). Consumer Ethnocentrism :six statements, Consumer Animosity :four questions inquiring of Malaysian consumers’ feelings towards Indonesia and Indonesian people developed by Klein, Ettenson and Morris (1998).

Conclusion The overall results show that country of origin, animosity and consumer ethnocentrism significantly affect the willingness to purchase Indonesian products among Malaysian We find that country of origin the most strongly influences consumer product evaluations

Conclusion The findings on animosity and consumer ethnocentrism coincide with previous research that had found that consumers in China (Klein, Ettenson and Morris, 1998; Ishii, 2009), the United States (Klein, 2002), Greek (Nakos & Hajidimitriou, 2007) and Indonesia (Ramadania, Gunawan, Astuti, 2011)

Conclusion In other words, Klein’s animosity model holds true for Indonesian products sold in Malaysia

Conclusion The Uppsala model concept of psychic distance by preference to start exportation to neighboring countries seems to apply also for Indonesian companies and they see Malaysia as the most attractive market.

Conclusion However, due to the flux of up and down of the relationship of the two countries, the concept seems need more elaboration by particular reference to Ethnocentrism, Animosity and Country of Origin Image

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