Abstract

This paper examines the impact of perceived brand localness (PBL) on consumer trust and purchase intention for foreign brands in developing countries in Asia. Our study pulls from social identity theory as a conceptual basis whereby PBL is conceptualized as a signal of in-group membership for local consumers. Online surveys were conducted with Philippine consumers regarding Korean and Chinese brands, and results empirically validated the positive effects of PBL on brand trust and purchase intentions. Our study further shows moderations by consumer cosmopolitanism and animosity.

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