Is this Truly Healthy? Consumer's Trust in a Healthy Product Extension in Traditionally Unhealthy Products

Abstract

Global health awareness trend has been increasing even before the pandemic. Companies jump on this bandwagon by introducing a healthier product line or extension. Problems arise when the parent brand is widely perceived as unhealthy, as it may hinder the process of building trust in the new brand. This research examined how brand trust of a healthy brand extension mediates the relationship between perceived competence and benevolence on customer loyalty. Structural Equation Modelling was employed in answering this question, involving a survey on respondents’ attitudes toward a recently-launched healthy instant noodle. The study found that brand trust mediates the relationship between perceived competence and benevolence and brand loyalty. Therefore, this study found that it is advisable to introduce a newer product line to form trust instead of relying on brand extension when the public's attitudes towards the original brand are too strong.