International Journal of Asian Social Science, 2014, 4(9): 1003-1012 ISSN(e): 2224-4441/ISSN(p): 2226-5139 © 2014 AESS Publications. All Rights Reserved. 1003 THE EFFECT OF CONSUMER ETHNOCENTRISM ON PERCEIVED DOMESTIC PRODUCT QUALITY AND PURCHASE INTENTIONS AMONG YOUNG CONSUMERS IN JAKARTA, INDONESIA Edi Purwanto Strategic Management, Faculty of Social Science and Humanities, Bunda Mulia University, Jakarta, Indonesia ABSTRACT The purpose of this study is to investigate the effects of consumer ethnocentrism on perceived domestic product quality, the effects of consumer ethnocentrism on domestic product purchase intentions, and the effects of perceived domestic product quality on domestic product purchase intentions especially in Indonesia domestic market. The measurement model is examined using a data set of 110 young customers in Jakarta, Capital of Indonesia, and tested via structural equation modeling and the study confirms all hypotheses. © 2014 AESS Publications. All Rights Reserved. Keywords: Indonesia market, Young consumers, Consumer ethnocentrism, Product quality, Purchase intentions. Contribution/ Originality The paper's primary contribution is finding that consumer ethnocentrism among the young consumers in Jakarta, Indonesia has influence on perceived domestic product quality and purchase intentions. 1. INTRODUCTION Today, Indonesia is to meet the ASEAN Economic Community 2015. To manifest a single market and production base making ASEAN and to manifest an ASEAN single market and production base that shall comprise five core elements as in ASEAN (2008), Indonesian domestic products and services, investments, capital and skilled-labours should ready to compete with other ASEAN countries and in global competition even in domestic market itself in Indonesia. It is great opportunity for Indonesia if Indonesian consumers itself have good perceived domestic product and domestic purchase intentions, because Indonesian market is not just in Indonesia as a big market, but also other ASEAN countries and out of ASEAN. But it will be threat for Indonesia if International Journal of Asian Social Science ISSN(e): 2224-4441/ISSN(p): 2226-5139 journal homepage: http://www.aessweb.com/journal-detail.php?id=5007