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Is Bottled Water Commodity In Saudi Arabia?

Abdullah M. Alhidari, Soad Abdullah Almeshal

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The current study addresses an important question: is bottled water a commodity? How consumers in Saudi Arabia categorize bottled water? This study provides insights for marketers to understand the transition between commodity and brand. It also adds to the current literature on price fairness and brand trust by highlighting the impact of product design and e-WOM. Also, brand trust may not act as trigger to purchase intention, but it helps consumers to have higher value of the product. A total of 1079 completed and usable responses were from the total participants. The relationships between the constructs were tested using Structural Equation Modeling (SEM) with Maximum Likelihood (ML) estimate. Next, the theoretical and managerial implications to the results of the study are discussed. This study broadens our understanding of the product transformation from commodity to brand. Moreover, the result helps managers to differentiate the products and enhance brand trust for consumers to positively perceive the product price. The current study adds to the literature by addressing the consumers’ understanding of branding and commodity. Additionally, empirical evidence through this study contributes to the practitioners in the Saudi food market.