How perceived brand localness affects purchase intentions: Examining the role of brand authenticity

Abstract

ABSTRACT This study aims to examine purchase intentions of local brands among consumers in emerging markets. Specifically, drawing upon signaling theory, this study examines the impact of brand authenticity on consumers’ perceptions of brand localness. Furthermore, the current study examines the consumer demographic as a moderating factor in the relationship between perceived brand localness (PBL) and brand authenticity (BA). Data were collected from a total of 380 Chinese consumers who participated in an online survey through social media platforms. To test the proposed hypotheses, the researchers utilized the PROCESS model in SPSS 26. The findings indicate that, after controlling for consumer ethnocentrism, PBL positively influences purchase intentions for local brands. Furthermore, the results reveal that BA mediates the positive effect of PBL on purchase intentions. Interestingly, the positive relationship between PBL and BA is stronger among older consumers compared to the younger generation. This study contributes to the international business literature by examining the effects of PBL, brand authenticity, and consumer age on purchase intentions towards local brands. This study also offers valuable insights for brand managers to effectively communicate with consumers in emerging markets, particularly by emphasizing the authenticity of their offerings.