THE EFFECT OF CULTURAL DIMENSION ON CONSUMER ETHOCENTRISM: PURCHASE INTENTION OF SARIAYU MARTHA TILAAR COSMETIC PRODUCT IN SURABAYA

Abstract

The world of economic especially for domestic cosmetic industry will be more challenging in the future, one of which is due to the 2015 ASEAN Economic Community (AEC), while the impact of culture basically so natural and automatic which its influence on consumer behavior. Sariayu Martha Tilaar cosmetic as one of Indonesian cosmetic needs to be conserved. Thus, this encouraged the researcher to identify the effect of cultural dimension on consumer ethnocentrism and the purchase intention towards Sariayu Martha Tilaar cosmetic product. One hundred ten respondents were given a questionnaire using a five point Likert Scale. Ten hypotheses were analyzed using the simple and multiple regression models. The study shows the significant and non- significant result among Hofstede five cultural dimension, consumer ethnocentrism, product competitiveness, perceived quality and purchase intention towards domestic product. Furthermore, product competitiveness encourages the respondent-consumers to keep purchasing Indonesian cosmetic product. The recommendation was to emphasize and maintain the competitiveness of domestic cosmetic (such as the quality and innovation towards the product) that will maintain the ethnocentrism and increase purchase intention towards domestic product. Indonesian should support the domestic cosmetic, while for domestic cosmetic industry maintain their product quality.