International Journal of Academic Research in Business and Social Sciences

August 2012, Vol. 2, No. 8

ISSN: 2222-6990

Impact of Brand Credibility and Consumer Values on

Consumer Purchase Intentions in Pakistan
Muhammad Sheeraz
Faculty of Management Sciences, Indus International Institute, Dera Ghazi Khan
Email: msheeraz.qaisrani@gmail.com

Nadeem Iqbal
Consultant Researcher, Faculty of Management Sciences, Indus International Institute, Dera
Ghazi Khan

Naveed Ahmed
Faculty of Management Sciences, Indus International Institute, Dera Ghazi Khan

Abstract

Purpose of the research is to examine association of brand credibility and consumer values with
purchase intentions of consumers in Pakistan. Brand credibility is studied in three dimensions
(trustworthiness, expertise and attractiveness) and consumer values are measured through LOV
(List of variables) measure. Data was collected from 102 students from different universities. A
self administered questionnaire was employed to collect data from respondents by method of
convenient sampling. Results of statistical analysis revealed that brand credibility and consumer
values are significantly and positively associated with consumer purchase intentions. Our study
imply that brand credibility and consumer values both have positive association with consumer
purchase intentions so marketer also focus on brand credibility as well as consumer values and
should establish long lasting credibility. This study has some limitations that can be reduced by
future research. This study was examined on students but in future it can be expanded on to
other general consumers. This study focused on cold drinks of a company further it can be
broaden to other products and results will be more obvious and effective.

Keywords: Brand credibility, Consumer Values, Purchase Intentions, Pakistan.

Introduction

“A brand is a name, term, sign, symbol or design or a combination of them which is intended to
identify the goods and services of one seller or a group of sellers and to differentiate them from
those of competitors” (Kotler, 1997, p. 443). Brand play an important role that it entails a
unique identity of firm products of services, different from competitors. Consumers face many
product and services within market and they don’t have certain information about those
product and services. It creates uncertainty in mind of consumers. When asymmetric
information is available in market then consumer or firms can employ signals to communicate

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 International Journal of Academic Research in Business and Social Sciences
August 2012, Vol. 2, No. 8
ISSN: 2222-6990

their information (Spence, 1974). In such type of situations brand can serve as symbols or
signals (Erdem & Swait, 2004) and signal should be credible (Tirole, 1990). Origin of brand
credibility is source credibility literature, when brands entail credibility then it stands for brand
credibility. Brand credibility refers to believability in characteristics of brand (product)
information. Prior studies had proposed three elements of brand credibility: trustworthiness,
expertise and attractiveness (Keller K. L., 2008; Wang & Yang, 2010). The term value can be
described as” conception of desirable” (Kluckhohn, 1962, p. 125), and “Principle, standard,
course of action or quality considered useful or worthwhile” (Kahle L. , 1983, p. 43). Previous
researches also explained that values affect the behavior of humans (Rokeach M. , 1968;
Yankelovich, 1981)

Only few researchers investigated the link of brand credibility and brand purchase intentions
(Wang & Yang, 2010). For example previous research had examined the effect of brand
credibility on product utility (Erdem & Swait, 1998). Another study investigated impact of brand
credibility on consumer choice and concluded that higher credibility increases the chances of
brand to be included in consideration set (Erdem & Swait, 2004). However these studies
investigated only two elements of brand credibility: trustworthiness and expertise. They did not
include attractiveness/likableness in their study so it causes incomplete effect of brand
credibility. A recent study by Wang and Yang (2010) investigated impact of brand credibility on
consumer brand purchase intentions and included brand image and brand awareness as
moderator. They concluded that brand image and brand awareness moderates the relationship
of brand credibility and consumer brand purchase intentions.

Previous researches had investigated that consumer values influences the attitude and
purchase intentions toward brand choice (Allen, 2001; Erdem, Oumlil, & Tuncalp, 1999; Homer
& Kahle, 1988; Shim & Eastlick, 1998). A recent research by Allen (2001) investigated the impact
of human values on product preferences, while incorporating the importance of tangible
features. As the culture and values of Pakistani consumers are very different from western
countries so it will provide a good insight in to knowledge to study these variables in this
context.
Objective of this research is to investigate the association of brand credibility, consumer values
and consumer purchase intentions. In this study our research will focus on the values of
consumers in Pakistan and explore how they affect brand credibility and consumer purchase
intention relationship.

Literature Review

Brand Credibility

Brand credibility is originated from source credibility literature. According to Ohanion (1990)
source credibility is positive characteristics of a sender that influence receiver’s message
acceptance, or validity of communication assertions (Enrique, Rafael, & Isabel, 2009), or
believability of intentions of entity at particular time (Herbig & Milewicz, 1995). This sender,
communicator or entity can be person, cartoon, corporation and/or brand (Wang & Yang, 2010)

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ISSN: 2222-6990

Previous research described that source credibility comprised of trustworthiness, expertise and
attractiveness (Hovland, Janis, & Kelly, 1953; Sternthal & Craig, 2002; Keller & Aaker, 1997). So
brand credibility refers to believability in characteristics of brand product information. It has
three elements trustworthiness, expertise and attractiveness.

1. Trustworthiness: The extent to what entity is considered reliable or honest source of

information.
2. Expertise: The extent to what entity has good knowledge and skills.
3. Attractiveness: the extent to what entity is valued by personality characteristics (behavior,
ambition etc.)

Trustworthiness is associated to attitude, expertise is associated with competencies and

attractiveness is associated with personality characteristics. Brand credibility involve consumer
to perceive that brand as reliable source of information (trustworthiness), has skills (expertise)
and match with personality characteristics (attractiveness). Hence trustworthiness, expertise
and attractiveness demonstrate a complete picture of brand credibility.

A handful of studies investigated effect of brand credibility purchase intentions. Brand

credibility increases consumer utility (Erdem, Swait, & Louviere, 2002), brand credibility is
positively associated with emotions and reasons in consumer decision making (Maathuis,
Rodenburg, & Sikkel, 2004). Prior research had investigated that source credibility impact
attitude of consumers towards the source (Brinol, Petty, & Z.L., 2004). A recent study by Wang
and Yang (2010) has investigated that brand credibility has positive impact on consumer
purchase intentions.

Thus we can hypothesize that:

H1: Brand credibility positively affects consumer purchase intentions

Consumer Values

Many studies measured the consumer values impact. Values can be defined as “an enduring
belief that a specific mode of conduct or end state of existence is personally or socially
preferable to an opposite or converse mode of conduct or end state of existence” (Rokeach M. ,
1973). And there are four measuring tools of values: the Rokeach value system (RVS) (Rokeach
M. , 1973), the Schwartz human values (Schwartz, 1992), the list of variables (LOV) (Kahle L. ,
1983) and the values and life styles system (VALS) (Mitchel 1983). In this research we will adopt
list of variable (LOV) measure of (Kahle L. , 1983).

In LOV, values can be separated in to two main dimensions: external values (social affiliation)
and internal values (self actualization). We will use LOV because of its reliability, ease of use
and as different researchers had accepted its cross cultural use and effectiveness (Beatty,
Kahle, & Homer, 1991; Goldsmith, Freiden, & Kilsheimer, 1993). There are nine items in LOV
which are as follows: “self respect, security, warm relationships with others, sense of

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ISSN: 2222-6990

accomplishments, self fulfillment, sense of belonging, being well respected, fun and enjoyment
in life and excitement” (Kahle, Beatty, & Homer, 1986)

Individuals have goals and objective which they struggle to achieve, selection of goals and
objective is done by values (Vinson, Scott, & Lamont, 1977; Kim, Forsythe, Gu, & Moon, 2002).
And values works as grounds to achieve for objectives in simple and consumption behaviors
(Allen, 2001; Williams, 1979). Consumer values influence decision making of choice of brand. As
Schwartz (1992) suggested that people develop criteria to select and defend their own and
others actions. Many researchers suggested that consumer values effect features of
consumption and behaviors (intentions) of consumers (Becker & Conner, 1981; Prakash &
Munson, 1985; Shim & Eastlick, 1998; Kim, Forsythe, Gu, & Moon, 2002). Another study
suggested that consumer values have been recognized as strong force that influences consumer
choice of product (Tse, Belk, & Zhou, 1989). Personal values have been determinant of different
features of consumer attitude and behavior (Homer & Kahle, 1988). A latest study on organic
products in California by Kim and Chung (2011) suggested that consumer values influences
purchase intentions of consumers.

Therefore we can hypothesize that:

H2: Consumer values influence the consumer purchase intentions about a product.

Theoretical Model:

H1
Brand Credibility
Purchase intention
H2
Consumer
Values

Methodology

The population for this study was students of Islamabad/ Rawalpindi universities. Respondents
could easily comprehend the questionnaire (in English language) so that content validity of
questionnaire was assured. A total of 150 questionnaires were distributed. Out of 150
questionnaires, 102 were completely filled, 8 were uncompleted and remaining did not respond
back. Response rate was 68%. Sampling technique employed was convenience in nature. We
utilized a self completion questionnaire to collect information (data) about consumers brand
credibility, consumer values and purchase intentions. Our study adapted questionnaire of brand
credibility from Erdem and Swait (2004) and Wang and Yang studies about brand credibility
(Wang & Yang, 2010) and measured on five point Likert scale. Brand credibility was measured in
three dimensions: Trustworthiness, expertise and attractiveness. Purchase intention

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ISSN: 2222-6990

questionnaire was adapted from Grewal et al. study (Grewal, Krishnan, Baker, & Borin, 1998).
Purchase intention was measured by one item, employing five point Likert item that indicates 1
“absolutely impossible” and 5 “absolutely possible”. Consumer values were measured by
adapting LOV measures (Kahle L. , 1983). It includes nine items that are as follows: self respect,
security, warm relationships with others, sense of accomplishments self fulfillment, sense of
belonging, being well respected, fun and enjoyment in life and excitement (Kahle L. , 1983). A
five point Likert type scale was used to measure values and respondents were directed to mark
the importance of each value (1= Not important at all and 5= greatly important).

Results, Discussion and Conclusion

The reliability analysis of variables was measured by employing Cronbach’s coefficient alpha.
And the reliability analysis revealed that it is .73, .71 and .71 of constructs brand credibility,
consumer values and purchase intentions respectively. These values were much bigger than
standard of .70 and fall in acceptable range. As all the items of questionnaire were adapted
from previous studies so content validity as insured.
The co-relation and regression techniques were used to measure the relationship among brand
credibility, consumer values and purchase intentions. The co-relation coefficients of three
variables were as follows:

Table 1: Co-relation Analysis:

P.I C.V B.C

P.I 1

C.V .755** 1

B.C .674** .744** 1

**. Correlation is significant at the 0.01 level (2-tailed).

N=102

In this study co-relation analysis demonstrate strong and positive relationship among purchase
intentions, consumer values and brand credibility and show that both consumer values and
brand credibility have co-relation of .755 and .674 respectively.

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ISSN: 2222-6990

Table 2: Regression Analysis

Standardized
Coefficients
Beta T Sig.

(Constant) -.144 .886

Brand Credibility .251 2.635 .010

Consumer Values .568 5.962 .000
a. Dependent Variable: Purchase Intention

Regression analysis revealed that value of Adjusted R Square is .590, it represent that 59.0%
change in dependent variable (purchase intention) is due to independent variables (brand
credibility and consumer values) and remaining 41% is caused by other factors. It represent
that Adjusted R Square value is highly significant and data of current study fits with model. And
value of F= 73.706 is significant at the level of .000. Beta value is .251 and .568 for respectively
brand credibility and consumer values and values are positive and significant at .010 and .000
respectively. It reveals that brand credibility and consumer values are positively associated with
purchase intentions of consumers.

This study examines the relationship of brand credibility, consumer values and purchase
intentions. Results revealed that there is positive and significant relationship of brand credibility
and consumer values with consumer purchase intentions in Pakistan. Findings of study are
consistent with previous studies of Erdem and Swait (2004), who concluded that higher
credibility will influence consumer and increase probability of product to be included in choice
set formation. Wang and Yang (2010) also concluded same results that brand credibility has
affect purchase intentions of consumer. Kim and Chung (2011) in their study suggested that
consumer values influence purchase intentions of consumers. And our results supported Homer
and Kahle study that consumer values influence the attitudes and behavior of consumer
towards product (brand) (Homer & Kahle, 1988).

On the basis of these findings we can conclude that brand credibility and consumer values
affect the purchase intentions of consumers in Pakistan. As the values of consumer of Pakistan
are different from western countries so they have also affect on purchase intentions.

Brand credibility plays an important role in purchase intentions of consumers and found that it
has positive and strong affect. The more brand is credible the more there are chances that it
will be included in choice set formation and will be selected (Erdem & Swait, 2004). Brand
credibility that was measured in three dimensions shown a positive impact on consumer
purchase intentions. Consumer while purchasing exhibited larger and strong positive intentions

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towards credible brand. Consumer values have strong and positive impact on the purchase
intentions of consumer towards brand.

Recommendations and Limitations and Future Directions

Current study provides numerous managerial implications. The main implication is that
credibility of brand is very important and has greater impact on the consumer while purchasing.
And in FMCG products it is more important because these purchases are based on past
experiences and credibility of source. So companies should establish and build up strong and
distinctive brand credibility from its competitors.

And the second managerial implication can be that companies should develop a long lasting
brand credibility to more influence the intentions of consumers. And it can be established by
giving expertise, trustworthiness and attractiveness to consumers.

Consumer values are also strong predictors of consumer purchase intentions so marketers
should keep in view and focus on the values of consumers because of affect.

Limitations can be avenues for future research. One limitation was that we employed student
collected data in our study. Future research can collect data from general customer that will
bring a good insight into knowledge. Second our study was tested on cold drink (juices) of a
company. Future research can focus more than one product that will give more generalizability
for results. And third we did not include consumer culture and brand image in our study.
Consumer culture and brand may have strong effect on purchase intentions as their effect was
concluded in some researches.

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