Abstract

PurposeThis paper aims to explore how consumer's purchase intentions and word-of-mouth (WOM) intentions of local tea are influenced by the signal effects of geographical indication labelling (GIL) on the basis of theory of reasoned action and social identity theory.Design/methodology/approachThis study has developed a structural equation model (SEM) to explain the effects of consumer's attitudes, social norms and social identities on behavioural intentions, considering purchase of foods with geographical indication labels. This study collected responses from 318 consumers of tea in Taiwan.FindingsThree main results are reported: (1) the prevention-focused benefit, which is a risk-aversion consideration, and the promotion-focused benefit, which is a taste and joy of quality, have higher influence compared to perceived concerns (price) on attitude towards GIL produce. (2) Compared to subjective norms, consumer attitude affects purchase intention more, yet the effects are opposite when they influence the WOM intentions. (3) Global identity impacts purchase intentions but not WOM intentions, whereas local identity influences both intentions.Originality/valueFindings indicate attitude, social influence and social identity play critical roles in affecting consumer behavioural intentions. Global identity and local identity play different roles in purchase intention and WOM intentions.

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