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    Constructing purchase intention model for foreign banks operating within Indonesia

    Access Status
    Fulltext not available
    Authors
    Muchtar, Fatimah
    Kingshott, Russel
    Wong, David
    Laksamana, Patria
    Date
    2011
    Type
    Conference Paper
    
    Metadata
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    Citation
    Muchtar, F. and Kingshott, R. and Wong, D. and Laksamana, P. 2011. Constructing purchase intention model for foreign banks operating within Indonesia, in C. K. Farn (ed), International Conference on Innovation and Management, Jul 12 2011. Kuala Lumpur, Malaysia: Electronic Business Management Society.
    Source Title
    Proceedings of the international conference on innovation and management
    Source Conference
    International Conference on Innovation and Management
    ISBN
    9789868489929
    URI
    http://hdl.handle.net/20.500.11937/62143
    Collection
    • Curtin Research Publications
    Abstract

    Indonesia is a developing economy and reliant upon foreign direct investment to increase its economic outlook. However, being located in a strategic position between Asia, Australasia and Oceania has made it an attractive proposition for foreign banks such as Citibank, HSBC, Standard Chartered. Despite this there are many market and regulatory challenges facing foreign banks operating within Indonesia. To gain a competitive edge they must clearly understand how the many cultures, values, norms, behaviours, mindsets and consumer lifestyles within Indonesia can be used to help drive strategy. Unfortunately, very little is known about Indonesian consumption preferences for foreign bank offerings. By drawing upon utility theory (UT) the main aim of this manuscript is to construct a purchase intention model that explains the effects of country of origin, trust and social consciousness upon purchase intentions of foreign bank offerings. Based upon the conceptual model we discuss a number of implications.

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