Authenticity as a Strategic Advantage: Understanding the Trust–Experience– Loyalty Relationship in Emerging Markets

Abstract

The objective of this study is to move beyond binary models and identify the psychological factors that effectively differentiate consumer loyalty toward local products, categorized into high, moderate, and low tiers. A sample of 500 Indonesian consumers was collected and analyzed using Multiple Discriminant Analysis (MDA), which is employed for its ability to assess the discriminative power of hypothesized variables. The analysis confirms that the three core psychological drivers perceived product authenticity, prior consumption experience, and authenticity belief (trust) significantly differentiate consumers based on their loyalty levels. The findings reveal that these constructs cohere into a single, high-loading dimension of "Place-Based Commitment," with perceived product authenticity emerging as the most influential factor. These results support the view that loyalty exists along a measurable spectrum shaped by coherent psychological dimensions. The study contributes theoretically by highlighting the discriminative capacity of psychological variables for behavioral segmentation, providing an evidence-based map of consumer commitment. From a managerial perspective, the findings offer actionable strategies for SMEs: enhancing consumer perception through compelling storytelling, ensuring consistent product experience, and building authenticity belief via transparent communication. These approaches provide cost-effective and targeted pathways for fostering sustained consumer loyalty.