The Role of Brand Familiarity and Trust in Consumer Buying Decision: the Mediating Role of Brand Loyalty in Leading Soap and Detergent Companies in Addis Ababa, Ethiopia
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Date
2025-06-18
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A.A.U
Abstract
In Ethiopia’s competitive soap and detergent market, there is limited empirical research on how brand familiarity and trust influence consumer buying decisions, especially in the context of emerging markets. This study aimed to address that gap by examining the role of brand familiarity and brand trust on consumer buying decision and assessing the mediating role of brand loyalty. A quantitative approach was employed using a descriptive and explanatory research design, with data collected through structured questionnaires from 359 consumers in Addis Ababa. Analysis was conducted using SPSS and the PROCESS Macro, applying descriptive statistics, multiple regression, and mediation analysis. The results revealed that brand familiarity had a stronger direct effect on purchase decisions, while brand trust exhibited a greater indirect effect through brand loyalty, with 35% of its impact mediated compared to 14% for familiarity. Differences between global (Unilever) and local brands (Repi and Samanu) were also evident across familiarity, trust, and loyalty dimensions. The findings suggest that while brand familiarity plays a key role in driving initial purchase intent, building brand trust is more critical for fostering long-term loyalty. Based on this, it is recommended that local brands invest more in trust-building strategies and consistent consumer engagement to strengthen their competitiveness against multinational brands.