INTEGRATING THE IMPACT OF COUNTRY OF ORIGIN ( COC ) AND CONSUMER ETHNOCENTRISM ( CE ) ON GLOBAL MARKETING ( GM ) AND GROWING CONSUMER TRENDS ( GCT ) EVIDENCES FROM PHARMACEUTICAL INDUSTRIES IN INDONESIA

The current research is empirically investigated the impact of country of origin and consumer ethnocentrism on growing customer trend directly also through global marketing as mediating variable. It is also assessed the impact of global marketing on growing consumer trend. By deploying Structural Equation Modeling with AMOS, three independent variables were analyzed, country of origin (CoC), global marketing (GM), consumer ethnocentrism (CE) and growing consumer trend (GCT) as dependent variable. The findings showed that both country of origin (CoC) and consumer ethnocentrism (CE) have significant effect on global marketing (GM) as well as on growing consumer trend (GCT). Further, global marketing (GM) successfully mediated and showed significant effect of both country of origin and consumer ethnocentrism. Finally global marketing has significant impact on growing consume trend.


Kardison Lumban Batu University of Diponegoro
The current research is empirically investigated the impact of country of origin and consumer ethnocentrism on growing customer trend directly also through global marketing as mediating variable.It is also assessed the impact of global marketing on growing consumer trend.By deploying Structural Equation Modeling with AMOS, three independent variables were analyzed, country of origin (CoC), global marketing (GM), consumer ethnocentrism (CE) and growing consumer trend (GCT) as dependent variable.The findings showed that both country of origin (CoC) and consumer ethnocentrism (CE) have significant effect on global marketing (GM) as well as on growing consumer trend (GCT).Further, global marketing (GM) successfully mediated and showed significant effect of both country of origin and consumer ethnocentrism.Finally global marketing has significant impact on growing consume trend.

I. INTRODUCTION
The emerging of world trade, an increase of world economic integration, and the globalization trend will lead not only to the decision of standardization and marketing strategy adaptation but also becomes important issues for academic research and marketing practical's.Beyond on massive research on standardization and marketing strategy adaptation which have been conducting for more than 40 years, the rigors and robust theory are still sparse (Ryan et al., 2003).Jain (1989), Almonte et al. (1995) demonstrated that few attempts to develop informative theoretical framework on standardized issues.Besides, a theoretical base which is existed in standardization centralized on homogeneity of customers and the action forward homogeneity (Ryan et al., 2003).
Meanwhile, homogeneity of customers are become crucial issues, marketing strategic dimension over customers consideration.Particularly, the competition plays important role in marketing strategy development and the impact on decision at the level of marketing strategy standardization.
Current research tries to investigate the impact of Country of Origin on growing consumer trend mediate by global marketing variable and the impact of consumer ethnocentrism on growing consumer trend.

Consumer of Origin and Growing Consumer Trend
At the very beginning ethnocentrism was sociological concept.Ethnocentrism was defined as view of things in which one's as the central of everything and considered all others thing should be enhanced and valued refer on ethnocentrism.Each group could maintain the self -proud and arrogance and self superiority.This phenomenon could be observed mostly in group within social life.Levine and Campbell (1972)  Several findings from some countries such as U.S., Germany, France and Japan supports uni-dimensional and validity of the measurements.Supporting findings were reported in a study conducted in Spain.Wang (2003) verified Consumer Ethnocentrism Tendencies measurement and found similar result in China.The impact of Country of Origin purchase intentions, assessment and perception have been the most research topics in marketing, business and consumer behavior discipline over the past decades.Many studies have been conducted to find the impact of Country of Origin product's evaluation, attitudes toward the product, buy intentions and purchase references.Lants and Loeb (1996) cited in Masayavanij (2007) showed that impact of Country of Origin was similar with brand, price and quality.
The impact of Country of Origin have been investigated in many product with the approach of quantitative and qualitative (Pinkaeo and Speece, 2000).The results revealed that consumers are strongly influenced by the country of origin image to assess product.Country of Origin could be used to investigate the quality of products, performance and product primordial's (Bruning, 1997).The impact of Country of Origin is an important determinant in dealing with consumer bias.As recommended by Peterson andJolibert (1995, cited in Balabanis &Diamantopoulas, 2000) consumer perceptions is various on product regarding on the origin.More specifically, Consumers determined Country of Origin as extrinsic requirements as the predictors of quality of goods and services (Veale andQuester 2009a, 2009b).Consumer could describe the brand and also the image of product to certain countries.Through the image country, brand image is developed as the stereotypical consumer confidence (Srikatanyoo and Gnoth2002).Bilkey andNes (1982 cited in Carter, Jr. 2009) reviewed literatures concern on of Country of Origin effects, demonstrated that perception Country of Origin has a strong impact on consumers.An analysis was conducted on the impact of Country of Origin Peterson andJolibert (1995 cited in (Carter, Jr. 2009) revealed that origin country image as the predictor of product perception.Researchers compared the impact of Country of Origin on purchase intentions and the quality / reliability of intent and noted that Country of Origin was stronger predictors' than purchase intentions.Ahmed et al. (2004) described that customer evaluated products by using Country of Origin with two conditions, such as hallo effect or summary construct.Hallo effect occurred when consumers evaluated and perceived products of certain country.Summary construct is developed when consumers investigated products with a level of familiarity with the product or product type.The second explanation revealed that the origin of a country is used to determine the quality of the products from that country.Based on aforementioned research findings, the proposed hypotheses are as follows: H1: The more concise of Country of Origin, the higher rate of Growing Consumer Trend

Country of Origin and Global Marketing
Pappu, Quester and Cooksey (2006) described that a positive or negative image of the country in the consumers perception influence the purchase decision.Hui and Zhou (2002) agreed that Country of Origin has a direct affect on purchase intentions.Meanwhile, Cervino, Sanchez and Cubillo (2005) revealed that Country of Origin was not directly affecting purchase intentions through other variables (products evaluation, brand image, brand equity and perceived value).Among the various dependent variables and product quality evaluation and purchasing intensions seem more wellknown.Cordell (1992) explained that Country of Origin an important hints in the theory of decision-making process.
Elliot and Cameron (1994 cited in Masayavanij 2007) also agreed that Country of Origin has a negative or positive impact on the purchase decision.A rate of Country of Origin used in many ways with the level of consumers' involvement in terms purchasing.Once consumers are less inclined to actively engagement in the process of purchasing, there is a possibility that the Country of Origin will be applied by consumers to make purchasing decisions; meanwhile if consumers are more motivated then they will emphasize the attributes of a particular products or services.Verlegh andSteenkamp (1999 cited in Zolfagharian &Sun, 2010) stressed that the impact Country of Origin is useful.Rahman (2000) suggested that the impact of Country of Origin is substantial to evaluate the product, but the authors disagree that behavior affects the final purchase and can be influenced by additional factors, such as price.
Only a little research conducted to examine the consequences of Country of Origin on the perception of Foreign Service providers.However, among the few studies seems that Country of Origin is an important determinant factor that customers deploy to increase the opinion about the quality of services (Phau and Chao, 2008).Srikatanyoo and Gnoth (2002) constructed a conceptual model of the effects of the country's image in the international higher education.In this study the relationship between the country image, institution image, a program evaluation and the students' intention to learn are proposed.
This research revealed that once international institutions moved to less desirable image countries could harm the image.Ahmed et al. (2002) conducted another research on an international cruise line package in which examining how the Country of Origin and brand influence perceptions of buyer's quality, purchase intentions and attitudes.Findings showed that respondents deployed Country of Origin as an important clue to determine country (U.S. or Malaysia) that offer the best service.Study on the impact of Country of Origin in the selection of service providers, done by Harrison-Walker (1995 cited in Veale and Quester, 2009) revealed that the image of the country is a huge aspect in the selection process of consumer.
From an international perspective, only a little research has been conducted on the impact of Country of Origin on the service.Javalgi et al. (2001) reviewed some research on Twenty Five top marketing journals and revealed that there were only nineteen studies connected to the impact of Country of Origin in the international field.
Among studies, it is found that only six assesed the impact of Country of Origin on the service.All six studies demonstrated that the Country of Origin affect the assessment of services by consumers.From these findings, it can be noticed that the impact of Country of Origin can be applied both in services and product settings and consumer by using the Country of Origin to investigate the services.The following is proposed hypotheses: H2: The more concise of Country of Origin, the higher scope of Global marketing

Consumer Ethnocentrism and Global Marketing
Though trading barriers among countries have been reduced by the government of different countries due to globalization, but in accordance with Shankarmahesh ( 2006) Consumer ethnocentrism is a non-tariff form of barrier that the concern for marketers.Summer (1906cited in Masayavanij 2007) firstly defined ethnocentrism in sociology field by considering their own group as the center of everything.Each group considers they are superior to others.Kinra (2006) defined that ethnocentrism buyer as emotionally concept that shows how buyers viewed that the product as an object of pride compared to foreign products.Yagci (200) noted the ethnocentrism is the strong belieft that stated unnecessary to buy foreign products instead of domestic product.Shimp andSharma (1987, cited in Nijssen andHark, 2009) also advocated that consumer ethnocentrism is a belief that creates the morality and appropriateness to purchase foreign products.The strong Influence of ethnocentrism could be viewed through the imports, perceptions on country of origin, investigation of counterfeits, product evaluation, consumer activities on foreign websites, perceptions on quality, attitude towards a brand, processing of advertisement, attitude towards advertisement, option among foreign and domestic products, reluctance to buy foreign products and purchase intentions.Shankarmahesh (2006) described that higher customer ethnocentrism revealed more negative investigation to foreign goods.Tropp and Pettigrew (2005) agreed as ethnocentric consumers have negative perception toward foreign goods and services lead to less attention to have contact with a foreign product or service provider.The very ethnocentric consumers believed that buying foreign products or services could endanger working environment and economic in the local country that questionable the appropriateness of product purchased.They believed that the purchasing of foreign goods is immoral, unpatriotic and inappropriate.Others research support this opinion, Srinivasan et al. (2004) illustrated that ethnocentric consumer's emphasis more on the good side of domestics' product and ignoring the benefits of using imported goods.
Ethnocentric consumers felt patriotic to purchase foreign products Balabanis (2001).In the other hands, non-ethnocentric buyers evaluated the quality of foreign goods and product primordial regardless of where they were made in.Lantz andLoeb (1996 in Masayavanij 2007) demonstrated in their findings that the ethnocentric customers tend to show a positive perception towards foreign products with the same culture.Masayavanij (2007) agreed that brands with strong local connections are preferred and adored by many consumers.Aligning with this, consumers offer preference to brands with the same ethnic origin compared with variety of brands with different cultures (Heslop et al., 1998in Masayavanij 2007).Category of varied product is strongly influence the level of consumer ethnocentrism (Piron, 2000).For any of unimportant category of product that beyond consumer needs have a tendency to be more ethnocentric.In nut shell, the following hypothesis is proposed.H3: The higher rate of Consumer Ethnocentrism, the higher rate of Global marketing.

Consumer Ethnocentrism and Growing Consumer Trend
Klein ( 2002) stated that Consumer ethnocentrism had a negative relationship with the evaluation of foreign goods and attitudes toward foreign goods (Zarkada-Fraser and Fraser 2002).Gürhan-Canli and Maheswaran (2000) believed that ethnocentrism consumer predecessor is needed to investigate Country of Origin.Brodowsky (1988) argued that high degree of ethnocentric consumers had a negative perception on foreign products and increase negative perception on foreign products.
Many researchers attracted on the effect of consumer ethnocentrism on foreign goods perceptions.Chakraborty et al., (1996) focused on the type of imported goods and showed that ethnocentrism affected consumer perceptions on imported goods and the consumers' investigation of foreign goods.Huddleston et al., (2001) found that the level of individual ethnocentrism buyer had the impact on the awareness of product quality.Polish consumers are also surveyed by Supphellen and Rittenburg (2001) research on Polish consumers showed that consumer ethnocentrism is likely to have an influence on brand attitudes when foreign brands better.Aligning with this, ethnocentric consumer tends to have the impact on characteristics experiences when foreign brand is better.High levels of ethnocentric consumers prefer a product of similar culture if domestic product substitutes not available.However, if a replacement is available then a case could be arisen.Watson and Wright (2000) stated that even when local substitutes are available, New Zealand customers prefer local product, even though imported products is considered to have better quality and lower price.
Some studies have questioned the importance of the country of origin for many consumer decision making (Elliott and Cameron, 1994;Hugstad and Durr, 1986;Mitchell and Greatorex, 1990;Schooler and Wildt, 1968), recent research has described that the home country has a huge effect on the attitude toward the product and the possibility of purchasing this product, it is often to show the similar stronger effect or even more powerful than the brand name, price, or quality (Ahmed and d'Astous, 1996;Lantz andLoeb, 1996, Okechuku, 1994).
Recent research has linked the impacts of the country of origin to the level of consumer ethnocentrism.Consumer ethnocentrism emphasizes on responsibility and morality in buying foreign products and consumer loyalty for home-made products (Shimp and Sharma, 1987).Sharma et al. (1995) noted that consumer ethnocentrism have a possibility to leverage attributes and quality of domestic products and inferior the quality of foreign products.
Regarding With consumer ethnocentrism, Sharma et al. (1995) revealed that the cultural similarities among countries is the factor that can influence the effects of consumer ethnocentric tendencies on attitudes toward foreign products.In an article that investigated the relationship between consumer ethnocentrism and evaluation of foreign products, Lantz and Loeb (1996) investigated the value of consumers in Canada and the United States where the product (mouse pads) which produced in and other countries.To support of the hypothesis, Lantz and Loeb (1996) demonstrated that high ethnocentric consumers, compared with low levels consumer ethnocentrism, have a better attitude towards the product of similar cultural.
Lantz and Loeb Research findings (1996) offered an important contribution by evaluating the impact of ethnocentrism on consumer attitudes toward foreign products; its meaning is likely to be limited through the use of students as subjects.Further, Demographic differences related to age and level of education has been revealed previously to ethnocentrism (Shimp and Sharma, 1987), thus, there is a potential bias in the determination of the level of ethnocentrism.Another potential limitation of the study conducted by Lantz and Loeb (1996) was the possible limitations of other research investigating the impacts of country of origin, furthermore, lack of precision regarding to the definition of the similar and different countries.Lantz and Loeb (1996) also stated that Canada is considered a country owns a common identity with the United States due to trade history and social relations, in the other hands Mexico is considered having a different culture, it is absolutely no relationship history attached.A lot of previous research has also relied on cultural similarities perception and differences based on theory (Kaynak and Cavusgil, 1983).Individual perceptions of the same or different cultures are apparently varied, but for the sake of academic study, theoretical reasons for cultural classification seem advisable and recommended.To summarize, current research proposes the following hypotheses.H4: The higher rate of Consumer Ethnocentrism, the higher scope of Global marketing.

Global Marketing
Competition started at the ownership and configuration of tangible and intangible resources (Barney, 1991;Hunt, 2000;Peteraf, 1993).By developing and utilizing a unique combination of heterogeneous resources and fixed assets, the firm can achieve and maintain a competitive position in the market (Peteraf, 1993).Research demonstrated that competitive advantage is mainly based on the intangibles of heterogeneous resources (Hitt et al, 2001;Hunt, 2000).One of the most general step to build and maintain a sustainable competitive advantage in the global operations of the company is through manager's competence (Griffith, 2006;Griffith and Lusch, 2007;Hitt et al, 2001).These competencies, business knowledge, and skills possessed by a marketing manager, often referred to as human capital (Griffith and Lusch, 2007;Nath and Mahajan, 2011).
Human capital can be defined into hard and soft skills (Andrews and Higson, 2008).Hard skills concern to the technical knowledge and skills emphasize on decision making.Hard skills mostly deal with technical or administrative processes regarding on corporate activities, businesses, and customers.Hard skills stressed on the ability to engage computer commands, financial procedures, application modeling, licensing and certification, and language skills.These skills are easily categorized and thus apparently easy to observe and measure.Hard skills of global marketing manager include, but unlimited on the capability to apply analytical models for the evaluating of the state market, the capability to response the local language; modeling capabilities that relate to estimating technology trend, and social sciences, finance, and political institutions at local and host country market (Griffith et al, 2012;.. Harvey et al, 2000).
When encountering the competition in a dynamic global market, global marketing manager hard skills used to navigate and direct the institutional differences that exist in the global operational in the firm (Harvey et al., 2000).Whilst Soft skills will be deployed on nontechnical skills.These skills are not only associated and related with a manager's capability to interact with others, but also with the determinant aspects of decision making.By reviewing literature intensively, soft skills are identified such as intuition, learning, flexibility, Soft skills could enhance individuals to form and integrate hard skills owned in the strategic decision making process, the following hypotheses is proposed.H5: The higher scope of global marketing, the higher rate of Growing Consumer Trend.
Research framework is shown in Figure 1.

III. RESEARCH METHOD
This study was conducted based on empirical research model.Measurement of variables indicator related to the concepts or constructs that have been developed and proposed to build hypotheses must meet standards of validity and reliability criteria that have been used by many researchers.Concept proposed in this study is the Country of Origin, Consumer Ethnocentrism, Global Marketing, Growing consumer trends.Large sample size constraints it encourages researchers to use multiple measurement indicators that are treated as a single indicator (Cooper, 1992).
Object of this study consists of companies that conduct strategic alliances with other companies in the pharmaceutical industry in some provinces in Indonesia.Research unit of study consists of owners and directors, the company's top managers that can be represented by the marketing manager, production manager, business development and research and development manager.The company owner or executive can represent the views, attitudes, behaviors in conducting strategic alliances in the development of strategic assets to gain a sustainable competitive advantage (Chaganti, Sambharya R, 1987).
The target of population of the study includes pharmaceutical companies operating in some provinces Indonesia.The industry is quite interesting to study because of its tough competition environment and the industry has a significant role in the economic field, especially for the public health sector.In addition all Pharmaceutical companies in Indonesia must do strategic alliances with suppliers and distributors with the company.
Research data which will be collected consist of primary data and secondary data.Primary data was collected using a survey method with most sending questionnaires by mail, in addition to some companies do interviews for respondents' request.Questionnaire that was tested content validity and reliability then performed field trials in order to obtain improved consistency and validity of the research instrument (questionnaire).Research variables and measurements are shown in Table 1.

IV. ANALYSIS AND RESULT
Assessing the internal consistency of the scales, using a combination of exploratory factor analysis and item-to-total correlations.As a result of these procedures no items that exhibited low item to total correlation or loaded on multiple factors.With the similar remaining items confirmatory factor analysis (CFA) is performed.CFA enables to analyze how appropriate the measured variables represent the constructs and assess construct convergent and discriminant validity.
Convergent validity is the level to which multiple measures of the similar construct share a high proportion of variance in general, and could be assessed by considering whether each measure's predicted pattern coefficient on its posited underlying construct is significant.Also, discriminant validity is the degree to which measures of distinct construct are not correlated highly, showing that a construct is truly differing from other constructs (Hair, Black, Babin, & Anderson, 2010).Estimating CFA models.Fit statistics indicated a close fit to the data (χ2 = 128, pb.10; Baseline index =.930,CFI =.945, and root mean square error of approximation [RMSEA] =. 082).For all measurement items, the standardized loadings obtained from CFA analysis were large and significant, providing evidence of convergent validity.3 shows, all constructs have alpha values and composite reliabilities scores that are equal to or exceed .7.Moreover, the average variance extracted for all constructs is equal to or greater than .5,satisfying the recommended thresholds.Thus, all measurement scales possess good levels of reliability.Table 2 presents the correlation matrix and descriptive statistics for the study constructs.

Structural Model Estimation
In particular, research findings demonstrated that the two antecedent factors (country of origin and ethnocentrism have significant impact on growing consumer trend.Therefore, H1 and H2 are supported.It is also noticed that country of origin and ethnocentrism played important role as predictor of global marketing.Moreover, providing support for H3 and H4.Finally, the effect of global marketing on growing consumer trend is positive and significant, providing support for H5.

Managerial Implications
The current research provided several implications for managers to take responsibility to develop construct and implement global marketing to leverage consumer trend.By doing so, owners and directors, the company's top managers that can be represented by the marketing manager, production manager, business development and research and development manager should be able to apply alliances strategic to convince consumer for any kind of country of origin's product.This currents study could also offered several insights that might be useful to deploy by international business managers in a broaden manufacturers.When business unit compete in a global scheme, manufactures should also investigate and evaluate external environment and internal organizational factors before going further to global marketing.Global performance can be achieved if manufacturer appropriately developed and nurture what local consumers of certain geographic needs at most.Furthermore, running business units in global market should realize the function of global marketing.Global marketing is considered not the only formula of standardization but a multidimensional and coherent set of activities.These actions include taking apart in all massive market in the world.Standardized country of origin's product marketing planning, once it is feasible, the stake holder should aligned competitive action across market.

V. DISCUSSION AND IMPLICATIONS
The main objective of the current research is to empirical examining the influence of country of origin and consumer ethnocentrism on global marketing and growing consumer trend.Growing consumer trend is strongly related with how global marketing organized in market, also the preference of consumer on local products as well as foreign products.Surprisingly, the consumer ethnocentrism also plays important role on the success of global marketing and growing consumer trend.Overall, providing an empirical test for 5 research hypotheses, using data collected from Indonesia manufactures.This current study contributes to the extant literature in some ways.
First, it broadens the country of origin by highlighting the importance of global marketing to increase growing consumer trend.Second, it demonstrates that consumer's ethnocentrism is effective attitude toward global marketing and trigger growing consumer trend.Third, research results reinforce the premise that global marketing, country of origin and consumers ethnocentrism are sources of increasing the level of growing consumer trend in market.
Like other study, this research is subject to several limitations.First, data were collected from manufactures without categorizing large scale or small medium enterprises; this lead to inability to draw inferences is limited and also difficult to generalize these findings.Second, data for this study were provided by two respondents in related industries included in research sample without considering the tenure and education level.Future studies should attempt to collect data from multiple respondents that will represent different organizational levels such as top managers and middle-level managers in order to enhance comprehensive understanding regarding country of origin, consumer ethnocentrism and global marketing.
Figure 2. Research Result

Table 1 .
Variables and Measurements

Table 2 .
Descriptive Statistics and Correlation Matrix

Table 3 .
Measurement Scales, Confirmatory Factor Analysis Results, and Reliabilities

Table 4 .
Standardized Path Coefficients for The Structural Model