Cultural Effect of Health and Information Disclosure on Brand Loyalty in Emerging Market

Abstract

The research examines how health-related challenges and information disclosure practices influence brand loyalty in the FMCG industry in Karachi, Pakistan, focusing on brand perception, trust, and cultural factors. The study employs cultural dimensions theory, signaling theory, and the brand equity model to explore the complex relationships between these variables. A quantitative research methodology was also used, implementing a correlation research design. Data was collected from 212 respondents using a non-probability, convenience sampling method with a 5-point Likert scale survey. The data was analyzed using PLS-SEM to assess the relationships between the variables. In addition, the results showed that brand perception positively affects brand trust. Brand trust has positively significant effects on brand loyalty. Culture has positively significant effects on brand perception. Also, health threats and information disclosure have a positively significant effect on culture. These results underscore the importance of health-related concerns and transparent communication in shaping consumer loyalty in the FMCG sector. The study provides valuable insights into how FMCG companies can strengthen brand loyalty in emerging markets through effective information disclosure practices and cultural alignment.