Sustainability 15 04477
Sustainability 15 04477
Article
Factors Affecting Filipino Consumer Behavior with Korean
Products and Services: An Extended Theory of Planned
Behavior Approach
Cristel Joy G. Cayaban 1,2 , Yogi Tri Prasetyo 3,4, *, Satria Fadil Persada 5 , Klint Allen Mariñas 1,6 ,
Reny Nadlifatin 7 , Rianina D. Borres 1 and Ma. Janice J. Gumasing 1
1 School of Industrial Engineering and Engineering Management, Mapúa University, Manila 1002, Philippines
2 School of Graduate Studies, Mapúa University, 658 Muralla St., Intramuros, Manila 1002, Philippines
3 International Bachelor Program in Engineering, Yuan Ze University, 135 Yuan-Tung Road,
Chung-Li 32003, Taiwan
4 Department of Industrial Engineering and Management, Yuan Ze University, 135 Yuan-Tung Road,
Chung-Li 32003, Taiwan
5 Entrepreneurship Department, BINUS Business School Undergraduate Program, Bina Nusantara University,
Malang 65154, Indonesia
6 Department of Industrial and Systems Engineering, Chung Yuan Christian University, Taoyuan 32023, Taiwan
7 Department of Information Systems, Institut Teknologi Sepuluh Nopember, Kampus ITS Sukolilo,
Surabaya 60111, Indonesia
* Correspondence: yogi.tri.prasetyo@saturn.yzu.edu.tw; Tel.: +886-3-4638800 (ext. 2422)
Abstract: Korean entertainment industries are dominating all over the world, including in the
Philippines. These celebrated mediums included Korean movies, songs, and products, many of
which are beloved by Filipinos. As such, this study aims to determine factors that affect the buying
decisions of Filipinos with Korean products and services by an extended theory of planned behavior
(TPB) approach. A total of 306 Filipino survey participants were collected and analyzed in this study
through a convenience sampling approach. Structural equation modeling (SEM) was utilized to
Citation: Cayaban, C.J.G.; Prasetyo, analyze the data using SmartPLS, which determined the correlation of the latent constructs of the
Y.T.; Persada, S.F.; Mariñas, K.A.; factors. Based on the results, attitude had the highest effect on behavioral intention, followed by K-
Nadlifatin, R.; Borres, R.D.; drama influence, K-pop influence, and product quality. Interestingly, product price was found to have
Gumasing, M.J.J. Factors Affecting a low effect on behavioral intention. This study can serve as a basis for investors and business owners
Filipino Consumer Behavior with
to align business strategies concerning consumer behavior in buying Korean products and services.
Korean Products and Services: An
Extended Theory of Planned
Keywords: consumer behavior; SmartPLS; structural equation modelling; cross-cultural consumer
Behavior Approach. Sustainability
behavior; elaboration likelihood model of persuasion; theory of planned behavior
2023, 15, 4477. https://doi.org/
10.3390/su15054477
The Philippines, particularly, has been swept up in the Korean wave. Undoubtedly, it
is typical for Filipinos to adapt to and embrace different cultures and traditions. Filipinos
embrace the Korean lifestyle in terms of fashion, cuisine, cosmetics, and other things.
They also adore and love Korean celebrities. Filipinos in the Philippines have adopted
Korean culture, including teaching Korean in public schools. Recently, the Department of
Education of the Philippines has agreed to offer elective Korean language instruction as
one of the Special Programs in Foreign Languages [3]. Additionally, there are other Korean
businesses spread out around the nation. In Korean Town, which is situated in Angeles
City, Pampanga, Philippines, people can take in and experience Korean culture. The
neighborhood exudes a strong Korean spirit by dining at Korean restaurants, purchasing
Korean goods, visiting KTVs, and doing other activities.
Considering the Filipino patronage of Korean Culture, only a few studies have con-
nected Filipino consumer behavior, choice, and justification for purchasing Korean goods
and services. Filipinos are known for their distinctive traits since they look for the goods
they need and desire [4]. The buying decisions of typical Filipino buyers are dependent
on their budget [4], individual vanity, and materialism [5]; these factors are especially
influenced by interactions among peers [6], as well as social media [6]. Consumer behav-
ior includes all actions taken by consumers in connection with the acquisition, use, and
disposal of goods and services and the emotional, mental, and behavioral reactions that
precede influence or result from these actions [7].
The COVID-19 pandemic has impacted the thinking and behavior of Filipino con-
sumers. As a result, people’s lifestyles have undergone several modifications and restric-
tions. The pandemic has caused problems with the availability of resources, people’s
ability to travel and acquire goods, and the permanent or temporary closures of businesses.
COVID-19 encouraged people to use social media more frequently, such as Facebook,
Instagram, WhatsApp, Twitter, and Zoom, platforms that can be used for communication,
sales and marketing, and sources of information [8]. As a result, public figures and online
influencers have become more prevalent than ever before.
Considering how COVID-19 impacted Filipino purchasing habits, we wanted to
examine Filipino purchasing habits with particular regard to Korean goods and services. In
line with this, we posited the following question: “How does the international popularity
of the Korean entertainment industry influence the perceptions, attitudes, and buying
decisions of Filipino people?” The current study aimed to identify the impact of the
Korean wave on Filipino culture, as well as to determine the significant factors affecting
Filipinos’ buying decisions concerning the Korean entertainment industry. We also sought
to determine the perceived acceptance of Korean culture and products.
This study applied high and low participation levels of the elaboration likelihood
model (ELM) and the theory of planned behavior (TPB) to examine the factors that affect
Filipino consumers’ decisions to purchase Korean goods and services. The combination of
the ELM and TPB was able to consider respondents’ buying decisions. Product quality and
pricing are examples of low involvement in ELM, while inspiration from Korean pop stars
and actors/actresses is an example of high involvement. TPB includes perceived behavioral
control, subjective norms, and attitude. The findings of this study can aid marketers and
advertisers in their analysis of Filipino consumers’ attitudes toward Korean goods and
personalities. The results of this study may also be helpful to those who want to start a
business in the Philippines. Moreover, the study focuses on how the Korean entertainment
industry, in terms of Korean pop stars and actors, affects Filipino buying decisions.
Sustainability 2023, 15, x FOR PEER REVIEW 3 of 15
Sustainability 2023, 15, 4477 3 of 14
2.2.Materials
Materialsand
andMethods
Methods
2.1.Conceptual
2.1. ConceptualFramework
Framework
Thetheoretical
The theoreticalframework
frameworkofofthisthisstudy
studyisisbased
basedon onthe
thecombined
combinedtheory
theoryofofELM
ELMandand
TPB.The
TPB. TheTPBTPBis is
anan extension
extension of the
of the theory
theory of reason
of reason action
action (TRA),
(TRA), whichwhich hypothesizes
hypothesizes that
that behavior
behavior is influenced
is influenced by an individual’s
by an individual’s intentionintention
to performto the
perform the [9,10].
behavior behavior [9,10].
Attitude
Attitude
(ATT), (ATT), norms
subjective subjective norms
(SN), (SN), andbehavioral
and perceived perceived control
behavioral control
(PBC) form (PBC) form the
the behavioral
behavioral
intention (BI)intention (BI) [11],
[11], as shown in as shown
Figure 1. in Figure 1.
Figure1.1.Theoretical
Figure Theoreticalframework.
framework.
Inthis
In thisstudy,
study,attitude
attituderefers
referstotothe
thepositive
positiveemotional
emotionalfeeling
feelingtoward
towardKorean
Koreanculture.
culture.
Theirattitude
Their attitudetoward
towardproducts
productsand andservices
servicescan
canpredict
predictthe
thebehavior
behaviorof ofindividual
individual con-
con-
sumers,and
sumers, andaapurchase
purchaseprediction
predictionisisderived
derivedfrom
fromaapositive
positiveattitude
attitude[12].
[12].However,
However,aa
person’sattitude
person’s attitudetowards
towards a product
a product oror service
service maymay change
change duedue to different
to different factors.
factors. Previ-
Previous
ous studies show that cultural factors significantly impact consumer attitudes
studies show that cultural factors significantly impact consumer attitudes [13,14]. With this, [13,14].
With
the this,
first the first hypothesis
hypothesis is formulated is formulated
as follows: as follows:
Hypothesis11(H1).
Hypothesis (H1).Attitude
Attitude(ATT)
(ATT)significantly
significantlyinfluences
influencesaaconsumer’s
consumer’sbehavioral
behavioralintention
intention
(BI)ininbuying
(BI) buyingKorean
Koreanproducts
productsororservices.
services.
Subjectivenorms
Subjective norms indicate an
an individual’s
individual’sperceptions
perceptionsofofsocial influence,
social such
influence, suchas be-
as
beliefs that significant others want them to participate in the target behavior [15].
liefs that significant others want them to participate in the target behavior [15]. The influ- The
influence of other
ence of other people
people around
around individualsimpacts
individuals impactstheir
theirdecision
decisionmaking,
making, such
such as family,
family,
friends,
friends,colleagues,
colleagues,and
andothers.
others.Therefore,
Therefore,the
thesecond
secondhypothesis
hypothesisisisformulated
formulatedas: as:
Hypothesis
Hypothesis22(H2). (H2).Subjective
Subjectivenorms
norms(SN)
(SN)significantly influence
significantly a consumer’s
influence behavioral
a consumer’s inten-
behavioral in-
tion (BI) (BI)
tention in buying Korean
in buying products
Korean or services.
products or services.
Perceived
Perceivedbehavioral
behavioralcontrol
controlisisan
anelement
elementextending
extendingthethetheory
theoryofofreasoned
reasonedaction
action
and
and describes an individual’s perception of personal capacities or constraints(factors
describes an individual’s perception of personal capacities or constraints (factorslike
like
time,
time,money,
money,and
andchance)
chance)ofofperforming
performingaaspecific
specificbehavior
behavior[16,17].
[16,17].The
Thelimited
limitedresources
resources
ofofan
anindividual
individualmay
mayhinder
hinderandandaffect
affectthe
theability
abilitytotodecide
decidetotobuy
buya aproduct.
product.
With
WithCOVID-19,
COVID-19,many
manyestablishments
establishmentsclosed
closedworldwide.
worldwide.TheTheconstraints
constraintsininbuying
buying
products caused by scarcity of supplies and shipment issues have limited our
products caused by scarcity of supplies and shipment issues have limited our capability capability to
buy goods and services. A recent study on predicting behavioral intentions to
to buy goods and services. A recent study on predicting behavioral intentions to prevent prevent or
Sustainability 2023, 15, 4477 4 of 14
mitigate COVID-19 shows that perceived behavioral control has the strongest correlations
with intentions and behaviors [18]. During COVID-19, when establishments started to open,
several people still hesitated to go outside and buy products and even eat in restaurants.
COVID-19 caused people to buy more products in fear of supply scarcity of personal
protective equipment [19,20]. Therefore, the third hypothesis is formulated as follows:
Another part of the framework is the ELM. The ELM theory considers the processes
responsible for persuasive communication and to which the attitude towards a process is
changed or strengthened [21]. Since people, in general, are easily persuaded by different
factors, ELM of persuasion can determine the behavioral change of attitude in buying
Korean products and services. ELM considers the importance of cognitive responses,
i.e., the consumers’ thoughts in processing information presented by marketing-related
messages [22]. It consists of the central route (high involvement), which depends on the
information that the marketers provide, and the peripheral route (low involvement), which
focuses on the product itself [23]. In Figure 1, the latent variable that affects behavioral
intention (BI) in the ELM includes product quality (PQ) and product price (PP) for low
involvement, and high involvement includes those inspired by K-pop (KP) and inspired by
K-drama (KD). In this study, PQ and PP were used as elements for the central processing
route given that each provide product-related information [24] that is highly important to
decision-making. KP and KD, on the other hand, were used as social connection factors [24]
and influential cues [25] in the peripheral processing route.
Consumers buy products based on their quality. Quality refers to the reliability or
value of the product’s attributes to the consumer. Previous research stated that the higher
the product quality, the higher the purchase intention of the buyer [26]. The quality of the
product may bring contentment or satisfaction with the features of the product. Therefore,
the sixth hypothesis is formulated as follows:
Hypothesis 4 (H4). Product quality (PQ) significantly influences a consumer’s behavioral inten-
tion (BI) in buying Korean products or services.
Other people buy products based on price tags. Price means the amount of money
paid for consumer goods. For example, when choosing an item, a customer checks the price
of different brands and decides which product to buy. Price is a real clue that consumers
use in their purchasing decisions [27,28]. However, some people do not mind the price of
the product. In this study, we tested the assumption of price having a significant factor in a
product. The seventh hypothesis is thus formulated as follows:
Hypothesis 5 (H5). Product price (PP) significantly influences a consumer’s behavioral intention
(BI) in buying Korean products or services.
Many Filipinos watch Korean dramas for different reasons, whether because of the
actors, genre, or storyline. In a research study conducted in Indonesia, the rapid growth in
cosmetics is associated with the brand image of a product used by celebrities in Korean
dramas [30]. This study assumed that the habit of Filipinos watching Korean dramas
may affect their buying decision for Korean products. Therefore, the ninth hypothesis is
formulated as follows:
2.2. Respondents
The purposive convenience sampling method was used to identify the participants
in this study. The survey questionnaire was distributed online through Google forms
on different social media platforms such as Facebook Messenger, Facebook groups, and
WhatsApp. The purpose of this study was to analyze the behavior and factors affecting the
buying decision of Filipino people. Thus, Filipino respondents must be buying or using a
Korean product or service set as the accepted response criteria to get an unbiased answer
or perception of those who use the product or services. Based on this criterion, 306 out of
336 (91.1%) of the responses were accepted and analyzed.
2.3. Questionnaire
The factors affecting consumer buying behavior towards Korean product and services
is based on the TPB and ELM, such as attitude (ATT), subjective norms (SN), perceived
behavioral control (PBC), product quality (PQ), product price (PP), inspired by K-pop
(KP), and inspired by K-drama (KD). A 5-point Likert scale was used to measure the latent
constructs from 1 as “I Strongly Disagree” to 5 as “I Strongly Agree” to determine the
influence of each statement on the respondents with the behavioral intention of buying
Korean products and services. The survey questionnaire used in this study can be found in
Table A1 in the Appendix A. Structural equation modeling using SmartPLS 4 software was
utilized to analyze the correlation between the latent.
3. Results
Based on the 306 accepted participants, there were 211 (69%) females and 95 (31%)
males. In terms of age category, the distribution was as follows: 6 (2%) less than 18 years
old, 30 (10%) 18–24 years old, 182 (59%) 25–34 years old, 77 (25%) 35–49 years old, and 11
(4%) ages above 50 years old. There were 208 (68%) who were employed full-time, 11 (3%)
were employed part-time, 39 (13%) were self-employed, 27 (9%) were students, and 21 (7%)
were unemployed. The monthly income or allowance of the respondents were 94 (31%) for
0–14,999.00, 79 (26%) for 15,000.00–29,999.00, 61(21%) for 30,000–49,999.00, and 72
(23%) for above 50,000.00. The annual budget or expenses was also identified to determine
the allotted spending on Korean products and services. The distribution was 261 (85%) for
a budget of 0–9999.00, 30 (10%) for 10,000.00–19,999.00, 6 (2%) for 20,000–29,999.00,
and 9 (3%) for above 30,000.00.
The participants were also asked about Korean products and services. Table 1 summa-
rizes the Korean products and services that the respondents usually buy, and the factors
that affect buying decision is shown in Table 2. The majority buy Korean foods (284),
followed by Korean cosmetics (121), Korean fashion (74), other Korean products (46), and
lastly, speak the Korean language (31). Product quality (190) was the top reason for buying
Korean products and services, followed by the social factor (127), inspired by K-drama
actors/actresses (112), and value for money (77). The least influential factor was inspired
by K-pop stars (26).
Sustainability 2023, 15, 4477 6 of 14
The goodness of fit was used to describe the fitness of the data gathered from a
population. Standardized root mean square residual (SRMR) was used to measure the fit
index of the model. In this study, the value of SRMR was 0.08, which was accepted with a
criteria of less than 0.10 [31] or 0.08 [32]. The coefficient of determination or R square was
described as substantial (0.75), moderate (0.5), and weak (0.25) [33]. The adjusted r-square
value of behavioral intention was 0.556, which implied that the model was a moderately
good fit.
The construct and reliability of gathered data are examined. Based on the test result in
Table 4, the values of the factors fit the basis of acceptable criteria. The Cronbach’s Alpha
(α) minimum value on the table was 0.761, which was greater than 0.7 [34]. A minimum
value was 0.768, which was greater than 0.5 [35–38]; for composite reliability (Re), the
minimum value was 0.848, which was greater than 0.7, and the average variance expected
(AVE) minimum value was 0.583, which was greater than 0.5.
Average Variance
Factors Cronbach’s Alpha rho_A Composite Reliability
Extracted (AVE)
ATT 0.771 0.777 0.855 0.597
BI 0.761 0.768 0.848 0.583
KD 0.950 0.950 0.964 0.871
KP 0.970 0.971 0.978 0.918
PBC 0.873 0.887 0.912 0.722
PP 0.836 0.873 0.888 0.666
PQ 0.872 0.882 0.913 0.723
SN 0.794 0.815 0.866 0.619
Figure 2 shows the model’s SEM based on the theoretical framework. The SEM
diagram depicts the relationship between the latent variables attitude, subjective norms,
perceived behavioral control, PQ, PP, inspired by K-pop, and inspired by K-drama with the
BI of buying Korean products and services. All the questions on each latent variable are
Sustainability 2023, 15, x FOR PEER REVIEW
considered since the factor loading values were >0.7. A higher value than 0.78signified
of 15
that
the factor extracted sufficient variance from that variable [39].
Figure 2.
Figure 2. SEM
SEMresults
resultsofofthe model.
the model.
The path analysis in Table 5 shows that according to the hypothesis generated, atti-
tude and inspired by K-drama were the factors that directly affected the behavioral inten-
tion of buying Korean products and services. The mean, standard deviation, T statistics,
and p values are illustrated in the table for each latent variable concerning behavioral in-
tention.
Sustainability 2023, 15, 4477 8 of 14
The path analysis in Table 5 shows that according to the hypothesis generated, attitude
and inspired by K-drama were the factors that directly affected the behavioral intention of
buying Korean products and services. The mean, standard deviation, T statistics, and p
values are illustrated in the table for each latent variable concerning behavioral intention.
4. Discussion
4.1. Theorerical Implications
According to the results of the SEM, one aspect of each hypothesis influences how
Filipino consumers decide whether or not to purchase Korean goods and services. The deci-
sion to purchase Korean goods and services is influenced by one’s attitude toward Korean
culture. Filipinos generally have a positive interest in Korean culture, especially regarding
the food and products that make them feel comfortable. Similar findings demonstrate a
favorable relationship between Hallyu and the perception of Korean goods [40–42].
Contrary to what the TPB claimed, subjective norms do not always correlate with
purchasing intention. According to this study’s results, subjective norms of the people
and society around customers have no bearing on their choice to purchase Korean goods
and services. The majority of respondents’ opinions of the product likely influenced their
decision to purchase. Similarly, Garcia et al., (2020) found that subjective norms do not
influence customers’ cross-cultural online behavior [43].
The results indicated that behavioral intention to buy is not directly impacted by
perceived behavioral control. However, the results show a contrast between the theory and
studies on green purchase intention [44] and the intention to purchase healthy food among
Korean consumers [45]. It indicates that an individual’s purchasing power’s restrictions
and limitations do not compel or prohibit them from making purchases. Despite the
limitations imposed as a result of the COVID-19 pandemic, a wide variety of means to buy
things have also surfaced.
ELM’s theory on low involvement includes product price and quality. Surprisingly,
in this study, the product’s price and quality had no bearing on the behavioral intention
to buy, probably due to the strong driving force of attitude toward Korean culture. The
outcome opposes the result in other research that competitive price influences consumer
purchase intention in the context of social commerce [46]. The pricing of Korean goods
and services does not indicate whether a person will buy. The quality of the product is the
consumer’s top factor that affects the intention to buy. According to a study conducted
on an online store, product quality significantly impacts consumers’ buying choices [47].
However, SEM shows that quality does not relatively affect behavioral purchase intention.
Sustainability 2023, 15, 4477 9 of 14
products where Filipino consumers are buying, suppliers may promote sustainability by
using eco-friendly raw materials and packaging.
5. Conclusions
Korean entertainment industries have become international successes, and the Philip-
pines is hardly immune to its influence. This study aimed to determine factors that affected
the buying decisions of Filipinos with Korean products and services using an extended
TPB approach. A total of 306 Filipino survey participants were collected and analyzed in
this study through a convenience approach. SEM was utilized to analyze the data using
SmartPLS in determining the correlation of the latent constructs of the factors.
In general, the Korean entertainment industry was found to have a significant impact
on the consumer behavior of Filipino people. In addition, attitude was found to have the
highest effect on behavioral intention, followed by K-drama influence, K-pop influence,
and product quality. Interestingly, product price was found to have a low effect on the
behavioral intention. This study can be a basis for investors and business owners to align
business strategies concerning consumer behavior in buying Korean products and services.
Author Contributions: Conceptualization, C.J.G.C., Y.T.P., S.F.P. and K.A.M.; methodology, C.J.G.C.,
Y.T.P., S.F.P. and K.A.M.; software, C.J.G.C., Y.T.P., S.F.P. and K.A.M.; validation, R.N., R.D.B. and
M.J.J.G.; formal analysis, C.J.G.C., Y.T.P., S.F.P. and K.A.M.; investigation, C.J.G.C., Y.T.P., S.F.P. and
K.A.M.; resources C.J.G.C.; writing—original draft preparation, C.J.G.C., Y.T.P., S.F.P. and K.A.M.;
writing—review and editing, R.N., R.D.B. and M.J.J.G.; supervision, Y.T.P., S.F.P. and R.D.B.; funding
acquisition, M.J.J.G. All authors have read and agreed to the published version of the manuscript.
Funding: This research was funded by Mapúa University Directed Research for Innovation and
Value Enhancement (DRIVE).
Sustainability 2023, 15, 4477 11 of 14
Institutional Review Board Statement: This study was approved by Mapua University Research
Ethics Committees (FM-RC-22-102).
Informed Consent Statement: Informed consent was obtained from all subjects involved in the
study (FM-RC-22-102).
Data Availability Statement: The data presented in this study are available on request from the
corresponding author.
Acknowledgments: The researchers would like to extend their deepest gratitude to the respondents
of this study despite the current COVID-19 inflation rate.
Conflicts of Interest: The authors declare no conflict of interest.
Appendix A
Table A1. Survey questionnaire.
I. Participant Details
Gender:
___Male
___Female
Age:
___less than 18 years old
___18–24 years old
___25–34 years old
___35–50 years old
___above 50 years old
Monthly Income or Allowance:
___0–14,999.00
___15,000.00–29,999.00
___30,000–49,999.00
___Above 50,000.00
Occupation:
___Student
___Unemployed
___Employed Full-time
___Employed Part-time
___Self-employed
II. Korean Product or Services
Answer the following questions (choose as many as applicable)
What is/are the Korean Products/Service do you usually buy/learn?
___Korean Cosmetics
___Korean Foods
___Korean Fashion
___Korean Language
___Other Korean products
What makes you buy these products or services?
___Inspired by K-drama actors/actress
___Inspired by K-pop star
___Product Quality
___Value for Money
___Social factors
Sustainability 2023, 15, 4477 12 of 14
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