Role of Brand Trust in Private Label Adoption Model- an Affective and Trust-based Innovation Characteristic

Consumers' lack of trust in the private label brand is thought to be the root cause of private label's failure in developing markets, particularly in Asia. To improve their market share in developing markets, retailers must address private-label brand trust issues and utilize private-la...

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Main Authors: Stany Wee Lian Fong, Hishamuddin Ismail, Tan Pei Kian
Format: Article
Language:English
Published: Universitas Indonesia 2023-07-01
Series:International Journal of Technology
Subjects:
Online Access:https://ijtech.eng.ui.ac.id/article/view/5935
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author Stany Wee Lian Fong
Hishamuddin Ismail
Tan Pei Kian
author_facet Stany Wee Lian Fong
Hishamuddin Ismail
Tan Pei Kian
author_sort Stany Wee Lian Fong
collection DOAJ
description Consumers' lack of trust in the private label brand is thought to be the root cause of private label's failure in developing markets, particularly in Asia. To improve their market share in developing markets, retailers must address private-label brand trust issues and utilize private-label characteristics to convince non-users to adopt their products. However, brand trust, which is understood to play a significant impact in innovation adoption, is not taken into account in the Diffusion-of-Innovation literature. To fill this gap, this study aims to apply a trust-based commendation to supplement 'brand trust' as the innovation characteristic and validate an adoption model for the private label that consists of all its important innovation characteristics. Brand trust is also expected to play a determinant role in the innovation characteristic model as an affective-based innovation characteristic. As a result, this study has empirically proven brand trust ( = 0.364) to be the most influential characteristic of adoption intention compared to relative advantage ( = 0.214), compatibility ( = 0.214), and perceived risk ( = -0.167). The empirical support of brand trust as the affective mediator contributes to justifying the significance of affective-based characteristics to the adoption of innovation.
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spelling doaj.art-dd725a8d0f93465e9a8511f2c7717d552023-07-28T08:59:02ZengUniversitas IndonesiaInternational Journal of Technology2086-96142087-21002023-07-01145993100810.14716/ijtech.v14i5.59355935Role of Brand Trust in Private Label Adoption Model- an Affective and Trust-based Innovation CharacteristicStany Wee Lian Fong0Hishamuddin Ismail1Tan Pei Kian2Faculty of Business, Multimedia University, Jalan Ayer Keroh Lama, 75450 Bukit Beruang, Melaka, MalaysiaFaculty of Business, Multimedia University, Jalan Ayer Keroh Lama, 75450 Bukit Beruang, Melaka, MalaysiaFaculty of Business, Multimedia University, Jalan Ayer Keroh Lama, 75450 Bukit Beruang, Melaka, MalaysiaConsumers' lack of trust in the private label brand is thought to be the root cause of private label's failure in developing markets, particularly in Asia. To improve their market share in developing markets, retailers must address private-label brand trust issues and utilize private-label characteristics to convince non-users to adopt their products. However, brand trust, which is understood to play a significant impact in innovation adoption, is not taken into account in the Diffusion-of-Innovation literature. To fill this gap, this study aims to apply a trust-based commendation to supplement 'brand trust' as the innovation characteristic and validate an adoption model for the private label that consists of all its important innovation characteristics. Brand trust is also expected to play a determinant role in the innovation characteristic model as an affective-based innovation characteristic. As a result, this study has empirically proven brand trust ( = 0.364) to be the most influential characteristic of adoption intention compared to relative advantage ( = 0.214), compatibility ( = 0.214), and perceived risk ( = -0.167). The empirical support of brand trust as the affective mediator contributes to justifying the significance of affective-based characteristics to the adoption of innovation.https://ijtech.eng.ui.ac.id/article/view/5935adoptionbrand trustdiffusion of innovationhierarchy of effectsprivate label
spellingShingle Stany Wee Lian Fong
Hishamuddin Ismail
Tan Pei Kian
Role of Brand Trust in Private Label Adoption Model- an Affective and Trust-based Innovation Characteristic
International Journal of Technology
adoption
brand trust
diffusion of innovation
hierarchy of effects
private label
title Role of Brand Trust in Private Label Adoption Model- an Affective and Trust-based Innovation Characteristic
title_full Role of Brand Trust in Private Label Adoption Model- an Affective and Trust-based Innovation Characteristic
title_fullStr Role of Brand Trust in Private Label Adoption Model- an Affective and Trust-based Innovation Characteristic
title_full_unstemmed Role of Brand Trust in Private Label Adoption Model- an Affective and Trust-based Innovation Characteristic
title_short Role of Brand Trust in Private Label Adoption Model- an Affective and Trust-based Innovation Characteristic
title_sort role of brand trust in private label adoption model an affective and trust based innovation characteristic
topic adoption
brand trust
diffusion of innovation
hierarchy of effects
private label
url https://ijtech.eng.ui.ac.id/article/view/5935
work_keys_str_mv AT stanyweelianfong roleofbrandtrustinprivatelabeladoptionmodelanaffectiveandtrustbasedinnovationcharacteristic
AT hishamuddinismail roleofbrandtrustinprivatelabeladoptionmodelanaffectiveandtrustbasedinnovationcharacteristic
AT tanpeikian roleofbrandtrustinprivatelabeladoptionmodelanaffectiveandtrustbasedinnovationcharacteristic