The effect of brand credibility on search and credence goods: A cross-country analysis of Korea, China & France
Vol. 15, No 2, 2022
Joonyong Park
School of Business, Hanyang University, Seoul, Korea hyjyphd@gmail.com ORCID 0000-0003-1058-3257 |
The effect of brand credibility on search and credence goods: A cross-country analysis of Korea, China & France |
Xuan Chenghui
School of Business, Hanyang University, Seoul, Korea seunghuihyun@hotmail.com Renee B. Kim
School of Business, Hanyang University, Seoul, Korea kimrby@gmail.com ORCID 0000-0001-8983-2580
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Abstract. The purpose of this research is to investigate how brands as signals affect brand attributes/benefits and brand choices for search and credence goods. The empirical model approximates the relationship between brand credibility (BR) and consumers’ purchase intention (BCP), which is mediated by four selected constructs: perceived quality (PQ), information cost saved (ICS), lower perceived risk (LPR) and relative price (RP). This study examines the importance of brand credibility as a latent construct for brand attributes and benefits which influence consumers’ brand choices and purchase intentions. Consumers’ brand choice making process is assessed for three major consumer markets – Korea, China and France – for the month of October 2020. Different outcomes of the relative path importance in two product categories of three consumer markets evidently show that brand may need to ‘signal’ appropriate features (i.e., brand attributes/benefits) and context (i.e., elements of marketing mix) for various product/market conditions and consumer characteristics. |
Received: December, 2021 1st Revision: February, 2022 Accepted: May, 2022 |
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DOI: 10.14254/2071-8330.2022/15-2/13
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JEL Classification: G21, L26, O16 |
Keywords: signaling theory, brand credibility, cross-country analysis |