Factors Influencing Consumers’ Purchasing Decision on Local Products

Abstract

The purpose of this research is to identify the factors that influence consumers’ purchasing decision on the local products. Malaysia as a developing country still import products heavily. While the imports products of Malaysia increased by average 10% yearly, amounting to RM 80.2 billion in 2018. Malaysian like to buy foreign products rather than local products and this will affect the Malaysia’s economic growth such as the value of Malaysian Ringgit will decrease, and small local companies will not be able to compete with foreign companies will eventually fail. The factors will be tested in this research are perceived product quality, attitudes toward advertising and informational influence that might influence consumers' purchasing decision on local products. Quantitative method has been carried out through questionnaires and distributed to 384 respondents while the target respondents are the young adults and adults that have their own purchasing power in Kuala Lumpur, Malaysia. Data collection analysis involves Reliability Test, Descriptive Statistics Analysis, Pearson Correlation Analysis and Multiple Regressions Analysis by using the Statistical Package for Social Science (SPSS) version 25. The research finding showed that perceived product quality, attitudes toward advertising and informational influence has significant positive relationship with consumers' purchasing decision on local products.