BUILDING BRAND TRUST BY CHOOSING THE RIGHT LOCATION: WHEN THE BUSINESS HEADQUARTERS SITE INFLUENCES CLIENTS' TRUST IN A BRAND

Abstract

Objective: We investigate the influence of the business headquarters location of a services firm on clients' brand trust. Method: An online survey was conducted with Les Mills brand's clients, resulting in 138 valid responses. Multivariate statistical techniques were used to analyze the data collected. Main results: The clients' trust in a services brand with a single regional headquarters (HQ) in a country varies depending on the country's geographic region. Clients in the same state where the single regional HQ of a services firm is located trust more in the services brand than clients from other states in the same geographic region. Clients from geographic areas with open cultures show higher levels of general brand trust than clients from geographic regions with closed cultures. Theoretical/methodological contribution: We contribute to branding literature by showing the influence of location on brand trust. As to location choice theory, we contribute by adding brand trust as one more consequence of such choice. Our main methodological contribution is Delgado-Ballester's brand trust scale (2004) validation in the context of services. Relevance/originality: Findings related to location choice and brand trust have theoretical and practical implications. On the one hand, we put together two apparently unrelated concepts. On the other hand, we apply such concepts to a real-world context. Managerial implications: By realizing that the location of a business HQ influences clients' brand trust, we argue that location choice is a complex process that companies should carefully manage.