Predicting Local Brand Acceptance in the Leather Products Market

Abstract

The purpose of this paper is to analyze the factors that influence local brand acceptance theoretically and practically to develop an integrated model that explains local brand acceptance in the local leather product market in Indonesia. The data is collected from 400 respondents, namely buyers of local leather products in Indonesia. Structural Equation Model–Partial Least Square (SEM-PLS) analysis was conducted to analyze the relationship between constructs. Importance-performance map analysis (IPMA) is used to analyze which constructs have the highest level of importance to local brand acceptance and price acceptance. The results show that price acceptance is influenced by product involvement, product knowledge, and prestige sensitivity. Local brand acceptance is only influenced by product involvement and price acceptance. Then the IPMA results show that product involvement has the highest level of importance to price acceptance. Price acceptance has the highest level of importance to local brand acceptance. This is one of the first studies that predicts local brand acceptance and price acceptance in the local leather product market in Indonesia and clarifies the role of product knowledge, product involvement, prestige sensitivity on their effect on local brand acceptance and price acceptance.