An Integrative Model of Place Image, Product Image and Consumer Receptivity

Abstract

Place image as an intangible cue has the power to influence the behavior of the buyer. Place in marketing discipline has been analyzed from country level to regional/territorial level. Focusing on a territorial context, the purpose of this study is to examine the place image effects on both the perception of local product and place as destination to visit. A local hand made batik industry from Yogyakarta is chosen to test the model. By analyzing 110 valid sample using SEM-PLS method, some findings from this study are: 1) Place image influences local product beliefs. 2) Product beliefs influence product choice intention. 3) Place image influences place beliefs. 4) Place beliefs influence place visit intention. This study contributes to the place image and product image integration model where majority of previous study were empirically examined as a separate model. By combining place image and its local product image, the local government may design distinct local product marketing strategy align with its local place image.