Why do consumers prefer a hometown geographical indication brand? Exploring the role of consumer identification with the brand and psychological ownership

Abstract

This research investigates the consumer purchase intention of products with geographic indications (GIs) based on a sample of 351 valid responses in three representative regions that are well known for their GIs of navel orange brands. Drawing on theories of consumer-brand relationship, social identity or consumer identification with the brand, and psychological ownership, our empirical results support our research hypotheses. Specifically, it is found that consumers tend to have a higher purchase intention for hometown GI brands than for non-hometown GI brands. Meanwhile, the impact of brand origin, that is, hometown versus non-hometown GI brand, on consumer purchase intention of GI products is found to be mediated by consumer identification with the GI brands. In addition, psychological ownership moderates the impact of hometown GI brands on purchase intention in that high psychological ownership enhances the impact of brand origin on purchase intention, whereas low psychological ownership negates this effect. Theoretical contributions and managerial implications are provided.