6
However,
not all
foreign businesses succeed
in Indonesia. There are
many
factors to be
considered before entering Indonesian market, such as target market, economic situation,
perceived value by potential customers, and so on. Furthermore, ethnocentrism
is
another
important
factor
to
be
considered as
there
are
Indonesians
who
do
not
believe
foreign goods or services is better than Indonesian goods or services and they might
prefer
Indonesian
product
&
services
to that
of
foreign
made.
Consumers
may
relate
certain brands to their own culture
heritage and
identity.
Research shows
that collective
countries such as Japan and other Asian countries have strong group norms
and ties to
family and country comparing that of western countries (Keller, 2008).
1.1.4 Perceived Risks and Trusts on Service Provided
Different
services
provided
by
businesses
have
different
perceived
risk
for
consumers
and perceived risk affects consumers’ trust on the company. If a consumer does not trust
the
company,
he/she
will
not
engage
to
the
service
provided
by
the
company
at
all.
When a service company
is to enter a
foreign
market,
it
is essential
for the company
to
quickly
establish
trust
to
lower
the
risk
associated
with
its
offers.
Establishing trust
is
especially challenging for new entrants as consumers cannot evaluate and develop trust
base on their own experience with the company. Therefore, they will only develop trust
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