At this moment, most of salesmen of Japanese and Non Japanese brands of household electronic products postponed the latest purchase order of some major dealers. The postponement was due to the difficulties of some leading brand manufacturers on meeting the high demand of the consumers. Usually the purchase orders have been settled through the previous arrangement. The back order condition of almost all category of household electronic product was affected by the high increment of consumer need in the growing middle class society. The middle class society had growth as potential market tremendously and followed by changing in consumer buying behavior. The high demand could not be fulfilled during the peak season period late 1995 to early 1996 in Indonesia. Household electronic manufacturers found the difficulties in meeting demand as an impulsive condition. It might not reflect the total market fluctuation as what has ever been happened previously in tight money policy situation in 1992. Japanese and Non Japanese manufacturers considered the importance on finding the real issue in the market. The demand is mostly driven by the price differential since there are market. The demand is mostly driven by the price differential since there are more new players in the electronic market, Japanese and some new Non Japanese brand. The new entrant Korean brand is one of the strong influence in Non Japanese household electronic category. Japanese brand felt the price differentiation as a trigger of pricing war between Japanese and Non Japanese brand. The competition caused price sensitivity in consumer mind. As the consequences, Japanese brand should find market alternatives to establish its leadership. The situation will be different if Non Japanese brands develop market alternatives.



Research Location: PT. Matari Advertising

Supervisor: Prof. Dr. Wagiono Ismangil

Accepted on [1996]



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