Understanding Purchase Intention of Fair Trade Handicrafts through the Lens of Geographical Indication and Fair Trade Knowledge in a Brand Equity Model
Abstract
:1. Introduction
2. Literature Review
2.1. Geographical Indication and Handicrafts
2.2. Fair Trade Handicrafts
“Fair Trade is a trading partnership, based on dialogue, transparency and respect, that seeks greater equity in international trade. It contributes to sustainable development by offering better trading conditions to, and securing the rights of marginalized producers and workers—especially in the South. Fair Trade organizations (backed by consumers) are engaged actively in supporting producers, awareness raising and in campaigning for changes in the rules and practice of conventional international trade” [18].
2.3. Theoretical Framework
2.3.1. Boundary Objects and GI
2.3.2. Social Learning Theory and Fair Trade Knowledge
2.3.3. Dimensions of CBBE for Fair Trade Textile and Clothing Handicraft
2.3.4. Conceptual Framework
3. Hypotheses Development
3.1. Effects of GI on CBBE
3.2. Interaction between GI and FTK on CBBE
3.3. Effects of CBBE on Purchase Intention
4. Research Method
4.1. Measurement of Brand Equity and Purchase Intention
4.2. Measurement of Fair Trade Knowledge
4.3. Subject’s Integrity Measurement
5. Results and Discussions
5.1. Demographic
5.2. Exploratory Factor Analysis and Assessing Measurement Model
5.3. The Effect of Geographical Indication
5.4. Interaction between Geographical Indication and Fair Trade Knowledge
5.5. Structural Relationship between Fair Trade Handicraft Brand Equity and Purchase Intention
5.6. The Summary of the Results and Emphases
6. Conclusions
6.1. Theoretical Contributions
6.2. Practical Contributions
6.3. Limitation and Future Research
Author Contributions
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Conflicts of Interest
References
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Factor | Factor Loading | Communalities | Variance % | Cronbach’s α |
---|---|---|---|---|
Factor 1 | 49.465 (49.465) | 0.848 | ||
PP1 | 0.365 | 0.386 | ||
PP2 | 0.419 | 0.735 | ||
PP3 | 0.950 | 0.999 | ||
Factor 2 | 15.626 (65.091) | 0.939 | ||
PQ1 | 0.828 | 0.726 | ||
PQ2 | 0.937 | 0.848 | ||
PQ3 | 0.854 | 0.876 | ||
PQ4 | 0.819 | 0.783 | ||
Factor 3 | 7.343 (72.434) | 0.890 | ||
BA1 | 0.801 | 0.620 | ||
BA2 | 0.869 | 0.835 | ||
BA3 | 0.837 | 0.781 | ||
Factor 4 | 4.600 (77.035) | 0.939 | ||
UQ1 | −0.859 | 0.820 | ||
UQ2 | −0.990 | 0.852 | ||
UQ3 | −0.878 | 0.855 | ||
Factor 5 | 4.308 (81.343) | 0.896 | ||
PI1 | 0.563 | 0.726 | ||
PI2 | 0.816 | 0.848 | ||
PI3 | 0.755 | 0.876 | ||
Factor 6 | 2.973 (84.316) | 0.877 0.881 | ||
BS2 | −0.686 | 0.641 | ||
BS3 | −0.684 | 0.703 | ||
BS4 | −0.808 | 0.810 |
Item | Factor Loading | AVE | α |
---|---|---|---|
Factor 1: Willing to pay a price premium (PP) | 0.664 | 0.848 | |
PP1. The price of X would have to go up quite a bit before I would switch to another textile and clothing handicraft brand. | 0.365 | ||
PP2. I am willing to pay a higher price for X brand of textile and clothing handicrafts than for other brands of textile and clothing handicrafts. | 0.419 | ||
PP3. I am willing to pay a lot more for X brand of textile and clothing handicrafts than for other brands of textile and clothing handicrafts. | 0.950 | ||
Factor 2: Perceived quality (PQ) | 0.798 | 0.939 | |
PQ1. The likelihood that X would be reliable is: | 0.828 | ||
PQ2. The workmanship of X is probably: | 0.937 | ||
PQ3. The quality of X’s product is likely to be: | 0.854 | ||
PQ4. The likelihood that X’s product is dependable is: | 0.819 | ||
Factor 3: Brand awareness (BA) | 0.732 | 0.890 | |
BA1. I know what X looks like. | 0.801 | ||
BA2. I can recognize X among other competing brands. | 0.869 | ||
BA3. Some characteristics of X come to my mind quickly. | 0.837 | ||
Factor 4: Uniqueness (UQ) | 0.837 | 0.939 | |
UQ1. X is distinct from other textile and clothing handicraft brands. | −0.859 | ||
UQ2. X really stands out from other textile and clothing handicraft brands. | −0.990 | ||
UQ3. X is unique from other textile and clothing handicraft brands. | −0.878 | ||
Factor 5: Purchase intention (PI) | 0.756 | 0.896 | |
PI1. I would buy X’s textile and clothing handicrafts rather than any other brands’ textile and clothing handicrafts available. | 0.563 | ||
PI2. I am willing to recommend others to buy X’s textile and clothing handicrafts. | 0.816 | ||
PI3. I am willing to purchase X’s textile and clothing handicrafts in the future. | 0.755 | ||
Factor 6: Brand association (BS) | 0.710 | 0.877 | |
BS1. X has a very unique brand image, compared to competing handicraft brands (Excluded). | −0.194 | ||
BS2. I respect and admire people who wear X. | −0.686 | ||
BS3. I like the brand image of X. | −0.684 | ||
BS4. I like and trust X, which makes textile and clothing handicrafts. | −0.808 |
Latent Variable | ||||||
---|---|---|---|---|---|---|
PQ | BA | BS | UQ | PP | PI | |
PQ (perceived quality) | 0.798 | |||||
BA (brand awareness) | 0.047 ** | 0.732 | ||||
(0.095) | ||||||
BS (brand association) | 0.464 *** | 0.348 ** | 0.71 | |||
(0.111) | (0.114) | |||||
UQ (uniqueness) | 0.479 ** | 0.159 ** | 0.555 *** | 0.837 | ||
(0.104) | (0.096) | (0.106) | ||||
PP (willing to pay a price premium) | 0.086 ** | 0.367 ** | 0.359 ** | 0.316 ** | 0.664 | |
(0.084) | (0.113) | (0.102) | (0.094) | |||
PI (purchase intention) | 0.172 ** | 0.346 ** | 0.572 ** | 0.389 ** | 0.719 ** | 0.756 |
(0.098) | (0.118) | (0.119) | (0.103) | (0.128) |
Hypothesis | Latent Variable | Latent Mean | Polled Variance | Cohen’s d | |
---|---|---|---|---|---|
Control | Treatment | ||||
H1 | PQ | 0 | −0.090 | 1.173 | −0.077 |
H2 | BA | 0 | 0.159 | 1.252 | 0.127 |
H3 | BS | 0 | 0.150 | 1.082 | 0.139 |
H4 | UQ | 0 | −0.052 | 1.034 | −0.050 |
H5 | PP | 0 | 0.289 * | 0.887 | 0.326 |
PI | 0 | 0.241 | 1.134 | 0.213 |
Hypothesis | Path | B | β | SE | C.R. | ||
---|---|---|---|---|---|---|---|
H6 | GI*MC_FTK | → | PQ | 0.127 | 0.226 | 0.047 | 2.700 ** |
H7 | GI*MC_FTK | → | BA | 0.081 | 0.138 | 0.053 | 1.526 |
H8 | GI*MC_FTK | → | BS | 0.098 | 0.184 | 0.047 | 2.094 * |
H9 | GI*MC_FTK | → | PP | 0.051 | 0.103 | 0.045 | 1.126 |
GI | → | PQ | −0.122 | −0.057 | 0.141 | −0.867 | |
GI | → | BA | 0.128 | 0.057 | 0.159 | 0.805 | |
GI | → | BS | 0.116 | 0.057 | 0.140 | 0.831 | |
GI | → | PP | 0.277 | 0.146 | 0.138 | 2.010 * | |
FTK | → | PQ | 0.090 | 0.258 | 0.029 | 3.079 ** | |
FTK | → | BA | 0.070 | 0.193 | 0.033 | 2.124 * | |
FTK | → | BS | 0.087 | 0.264 | 0.029 | 2.983 ** | |
FTK | → | PP | 0.037 | 0.122 | 0.028 | 1.325 |
Hypothesis | Path | B | β | SE | C.R. | ||
---|---|---|---|---|---|---|---|
H10 | PQ | → | PI | −0.095 | −0.100 | 0.068 | −1.396 |
H11 | BA | → | PI | −0.009 | −0.010 | 0.059 | −0.148 |
H12 | BS | → | PI | 0.494 | 0.496 | 0.101 | 4.906 *** |
H13 | PP | → | PI | 0.699 | 0.633 | 0.091 | 7.707 *** |
H14 | UQ | → | PI | 0.526 | 0.572 | 0.076 | 6.908 *** |
Path | Direct Effect | Indirect Effect | ||||
---|---|---|---|---|---|---|
B | 95% CI | β | 95% CI | |||
PQ | → | PI | −0.095 (−0.100) | [−0.260, 0.026] a | ||
[−0.254, 0.030] b | ||||||
BA | → | PI | −0.009 (−0.010) | [−0.181, 0.167] a | ||
[−0.192, 0.179] b | ||||||
BS | → | PI | 0.494 (0.496) *** | [0.313, 0.720] a | ||
[0.314, 0.701] b | ||||||
UQ | → | PI | 0.368 (0.362) ** | [0.252, 0.521] a | ||
[0.271, 0.468] b | ||||||
PP | → | PI | 0.699 (0.633) ** | [0.468, 1.074] a | ||
[0.496, 0.756] b |
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Lee, E.; Zhao, L. Understanding Purchase Intention of Fair Trade Handicrafts through the Lens of Geographical Indication and Fair Trade Knowledge in a Brand Equity Model. Sustainability 2024, 16, 49. https://doi.org/10.3390/su16010049
Lee E, Zhao L. Understanding Purchase Intention of Fair Trade Handicrafts through the Lens of Geographical Indication and Fair Trade Knowledge in a Brand Equity Model. Sustainability. 2024; 16(1):49. https://doi.org/10.3390/su16010049
Chicago/Turabian StyleLee, Eunmi, and Li Zhao. 2024. "Understanding Purchase Intention of Fair Trade Handicrafts through the Lens of Geographical Indication and Fair Trade Knowledge in a Brand Equity Model" Sustainability 16, no. 1: 49. https://doi.org/10.3390/su16010049
APA StyleLee, E., & Zhao, L. (2024). Understanding Purchase Intention of Fair Trade Handicrafts through the Lens of Geographical Indication and Fair Trade Knowledge in a Brand Equity Model. Sustainability, 16(1), 49. https://doi.org/10.3390/su16010049