Intervening Effect of Attitude on the Relationship between Selected Determinants and Corporate Image

Abstract

Abstract-Despite the profitable revenue reported by direct selling industry, the corporate image of these companies has been negative and deteriorating. This is partly attributable to the increasing number of pyramid schemes and frauds which had led to the negative attitude of the consumer towards direct selling, and tarnished the image of the direct selling company in recent years. Hence, the main objective of this study is to examine the intervening effect of attitude in the relationship between the selected determinants and corporate image of direct selling companies in Thailand. A total of 900 questionnaires was distributed to direct selling customers, and 612 were collected back, representing a response rate of 68%. A final 532 usable questionnaires were analysed using structural equation modelling (SEM). This study found a full mediating effect of attitude between perceived value and corporate image. However, attitude was a partial mediator when tested for linkage between trust and corporate image while attitude does not mediate in others. The finding of the study is discussed in the perspective of its implications in direct selling context.