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 

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

DOI: 10.14254/2071-8330.2022/15-2/13

JEL Classification: G21, L26, O16

Keywords: signaling theory, brand credibility, cross-country analysis