Consumers’ value perception and value construction: the case of bottled water in the Middle East

ABSTRACT

This study illustrates how consumers realize the concept of value creation when making quick selections for a commodity in the Saudi market. Data were collected through a self-administered survey to customers; 1,045 completed and usable responses were received and analysed. The proposed model was tested through structural equation modelling using AMOS 22. Results indicate that product design and brand trust affect electronic word-of-mouth (e-WOM), and product design, brand trust, and e-WOM influence consumers’ value creation. However, e-WOM does not mediate the relationship between product design and consumer value nor does it mediate the relationship between brand trust and consumers’ value creation. This study focused on one product (bottled water). Caution must be exercised in generalization of the results to other products/countries. Theoretically, this study extends the perception of value creation on a commodity and the influence of trust on perceived value. Although this study is based on a sample of Saudi Arabian consumers that is oversampling the age group of young consumers, it extends the rare empirical evidence base on the perception of value creation in the bottled water market, and the influence of trust on perceived value. The results suggest that firms could benefit from altering the design of their bottled water products to create higher perceived value and higher brand trust, differentiating themselves further from competition. The study contributes to the existing literature on consumers’ perceptions of bottled and branded water, taking into account e-WOM communication, and providing rare evidence on brand trust from outside of Europe and North America.

KEYWORDS:

• Value creation
• product design
• brand trust
• social media e-WOM
• perceived value

ARTICLE CLASSIFICATION:

• Formal paper

Notes

¹ All metrics are retrieved from the same respondents and no Marker-Variable Technique was employed (King & Malhotra, 2015)

Additional information

Funding

This work was supported by the King Saud University – deanship scientific research [1];