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Is Bottled Water Commodity in Saudi Arabia?

Author

Listed:
  • Abdullah M. Alhidari
  • Soad Abdullah Almeshal

Abstract

The current study addresses an important question: is bottled water a commodity? How consumers in Saudi Arabia categorize bottled water? This study provides insights for marketers to understand the transition between commodity and brand. It also adds to the current literature on price fairness and brand trust by highlighting the impact of product design and e-WOM. Also, brand trust may not act as trigger to purchase intention, but it helps consumers to have higher value of the product. A total of 1079 completed and usable responses were from the total participants. The relationships between the constructs were tested using Structural Equation Modeling (SEM) with Maximum Likelihood (ML) estimate. Next, the theoretical and managerial implications to the results of the study are discussed. This study broadens our understanding of the product transformation from commodity to brand. Moreover, the result helps managers to differentiate the products and enhance brand trust for consumers to positively perceive the product price. The current study adds to the literature by addressing the consumers¡¯ understanding of branding and commodity. Additionally, empirical evidence through this study contributes to the practitioners in the Saudi food market.

Suggested Citation

  • Abdullah M. Alhidari & Soad Abdullah Almeshal, 2018. "Is Bottled Water Commodity in Saudi Arabia?," International Journal of Marketing Studies, Canadian Center of Science and Education, vol. 10(2), pages 86-94, June.
  • Handle: RePEc:ibn:ijmsjn:v:10:y:2018:i:2:p:86-94
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    References listed on IDEAS

    as
    1. Kahneman, Daniel & Knetsch, Jack L & Thaler, Richard H, 1986. "Fairness and the Assumptions of Economics," The Journal of Business, University of Chicago Press, vol. 59(4), pages 285-300, October.
    2. Park, C Whan & Milberg, Sandra & Lawson, Robert, 1991. "Evaluation of Brand Extensions: The Role of Product Feature Similarity and Brand Concept Consistency," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 18(2), pages 185-193, September.
    3. Bone, Paula Fitzgerald, 1995. "Word-of-mouth effects on short-term and long-term product judgments," Journal of Business Research, Elsevier, vol. 32(3), pages 213-223, March.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    product design; e-WOM; brand trust; price fairness; commodity; bottled wate;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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