The Relationship of Country Image, Product-Country Image, and Purchase Intention of Korean Products: Focusing on Differences among Ethnic Groups in South Africa

Purpose - The purpose of this study is to provide practical implications for Korean companies searching for new market opportunities. From the experimental analysis, the impact of country image on product-country image and purchase intention of Korean products are measured. In addition, this study disaggregates the impacts of country image and product-country image and purchase intention among ethnic groups in South Africa for searching further useful implications. Design/methodology - To examine South African consumers' country image and product-country image towards Korean products, data were collected between June and July 2019 through an online questionnaire, and 335 questionnaires were used for analysis. Firstly, the multivariate analysis was conducted to examine the general tendency of South African consumers' perceptions of country image to Korea, product-country image, and purchase intention among three ethnic group consumers. Then in order to verify the country image model and hypotheses of the study, we analyzed the structural models for each of the three ethnic groups and compared the sizes of the path coefficients for each groups. To compare the difference of path coefficients across ethnic groups, configural invariance, metric invariance, and scalar invariance tests were conducted sequentially. Findings - In the black and white ethnic groups, the country image had a statistically significant impact on product-country image, but it did not affect the purchase intention to Korean products. The product-country image showed a statistically significant impact on the purchase intention to Korean products in both ethnic group. However, in the coloured ethnic group consumer, the country image had a significant effect on the product-country image, but it did not affect the purchase intention of Korean products. In addition, the product-country image did not have a significant influence on the purchase intention of coloured ethnic group consumers unlike black and white ethnic group consumers. The results of this study suggest that even though differences in terms of the impact of CoI on PCI and PI were investigated for the sample of white, coloured, and black respondents, the groups seemed to respond in a reasonably comparable manner. Originality/value - South Africa occupies more than 20% of Africa's total GDP in sub-Saharan Africa and is a hub for Southern African logistics as a hub for Korean companies to enter Africa. However, it is rare to find a study focused on the determinants of consumer behavior in South Africa. In particular, this study disaggregates the impacts of country image and product-country image on consumer behavior across ethnic groups in South Africa. Therefore, this study could provide practical implications for Korean firms which desire to diversify their export markets and pioneer future markets.