Perceived brand localness of foreign brands and its impacts on brand trust and purchase intentions in developing countries in Asia: a social identity theory perspective

Abstract

PurposeThe study draws primarily on social identity theory and conceptualizes perceived brand localness (PBL) as a signal of in-group membership to local consumers and investigates how it affects consumer trust and purchase intentions for foreign brands in developing countries in Asia. In addition, the authors examine boundary conditions for these hypothesized PBL effects.Design/methodology/approachUsing consumer survey data from three countries in Southeast Asia (the Philippines, Vietnam and Myanmar), the authors empirically validate the positive effects of PBL on consumer trust and purchase intentions for foreign brands in developing countries.FindingsThe findings support the social identity theory conceptualization of PBL for foreign brands, in which it can create identification-based trust (Tanis and Postmes, 2005) and active ownership through a process of self-stereotyping (van Veelen et al., 2015).Originality/valueThe findings suggest that social identity theory can be a promising theoretical framework for conceptualizing PBL and gaining a deeper insight into its mechanization and how it impacts consumers.