The Influence of Localism and Brand Trust on Consumer Purchase Decisions in Local Retail Stores in Northern Thailand
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Abstract
This research aims to: 1) Explore the exploratory factors influencing purchasing decisions in local retail stores, 2) Test the consistency of the causal model influencing purchasing decisions in local retail stores, and 3) Investigate the management strategies of local retail stores. This study uses a mixed-methods approach, combining quantitative research through a survey. The sample group consists of 450 residents from 9 provinces in Northern Thailand. Data were collected via online questionnaires, and the analysis was performed using descriptive statistics including frequency, percentage, mean, standard deviation, and inferential statistics via structural equation modeling. In addition, qualitative research was conducted through in-depth interviews with managers of 5 successful local retail stores in Northern Thailand.
The findings reveal that the analysis of basic statistical values shows that the latent variables in the study are seven in total. All variables were found to have high overall levels, with means ranging from 4.24 to 4.34. The factor loadings of all observed variables were greater than 0.70 and statistically significant at the .001 level. In addition, the composite reliability and the average variance extracted were examined. The results showed that all constructs had CR (rho_a) values ranging from 0.844 to 0.934, and AVE values ranging from 0.804 to 0.929. The most influential factor on purchasing decisions (PD) was purchasing intention (PI), followed by trust (BT) (TE=0.464) and local preference (LC) (TE=0.160). Local preference (LC), attitude (AT), social norm (SN), perceived behavioral control (PBC), and trust (BT) together explained 85% of the variance in purchasing intention (PI). Furthermore, local preference (LC), trust (BT), and purchasing intention (PI) together explained 84.2% of the variance in purchasing decisions (PD). However, while local preference (LC) did not directly influence purchasing decisions (PD), it had an indirect influence through purchasing intention (PI) with a path coefficient of 0.097. Similarly, trust (BT) had an indirect influence through purchasing intention (PI) with a path coefficient of 0.206.
Regarding the strategies of local retail stores in Northern Thailand, businesses set clear goals focusing on growth and sustainability, integrating technology and service to enhance competitiveness. Resource management is diversified based on each store’s potential, with a focus on utilizing data to increase efficiency. Competitive strategies vary by context, including price, community relationships, service, and data utilization. Risk management reflects the ability to adapt to uncertainties through cost control, channel expansion, and service strategy adjustments. Moreover, stores emphasize sustainability in environmental dimensions, growth, and business succession. Finally, entrepreneurs believe that modern retail businesses require systematic management combined with an understanding of the local context to compete and survive in the rapidly changing market environment.
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