'AUTHENTIC SABAH': DOES THE LABEL DRIVE PURCHASE OR JUST DRESS THE SHELF ?
DOI:
https://doi.org/10.51200/mjbe.v13i1.7466Keywords:
Region of Origin, Signalling Theory, Labelling Theory, Certification Labels, Authentic SabahAbstract
Certification labels function as quality signals in markets characterised by information asymmetry, yet their effectiveness in nascent, government-led regional schemes remains empirically underexplored. This study examines whether the 'Authentic Sabah' holographic label influences consumer trust, perceived quality, and purchase intention toward local fast-moving consumer goods (FMCG) products in Sabah, Malaysia. Grounded in Signalling Theory and Labelling Theory, a quantitative cross-sectional design was employed, with data collected from 356 eligible respondents via an online self-administered questionnaire. Partial Least Squares Structural Equation Modelling (PLS-SEM) was applied for hypothesis testing. Results demonstrate that Region of Origin, anchored by label-trust cues, exerted strong positive effects on Perceived Quality (β = 0.835) and Product Evaluation (β = 0.796), with a significant direct effect on Purchase Intention (β = 0.414). Purchase Intention fully mediated the relationship between Region of Origin and Purchase Behaviour (VAF = 100%). These findings confirm that the 'Authentic Sabah' label operates as an effective certification signal in a low-involvement FMCG context. Policymakers and MSMEs are recommended to invest in consumer awareness campaigns, transparent certification governance, and active label communication strategies to sustain signalling effectiveness. Future research should pursue longitudinal designs, explicit measurement of label credibility, willingness-to-pay analyses, and comparative studies across Malaysian regional certification schemes to advance theoretical and practical understanding of regional label effectiveness.
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