• International Commerce and Information Review
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• v.16 no.3
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• pp.357-380
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• 2014

Buyers' Trust in suppliers is critical in all commerce, but particularly in the relationship between foreign provider and local consumer due to the liability of foreignness. This study examines (1)how local consumers trust in the product of MNCs is affected by their perceptions of the product attributes, (2)does the product trust affects customers loyalty, and (3)whether Global Corporate Citizenship moderates the relationship between the product attributes and trust. Based on previous researches, hypotheses are formulated and the statistical method used to test them was a moderated regression analysis using SPSS 20. 330 respondents from the university student group in Korea were used for this analysis. The results of this study are follows: Service communication and product perceptions such as quality, technological newness, design, and brand value have a significant effect on the product trust. The Effectiveness of product-related service communication had greater than that of the physical characteristics of product. But, price fairness is not significantly. The trust then has a positive relation to customers loyalty. When global corporate citizenship as the moderating role is introduced into the model, the interaction terms with 'price fairness' are verified to be significant. Therefore, global corporate citizenship moderates the relationship between price fairness and product trust. The results of the empirical study provide important implications for Korean firms operating in foreign markets. But, the findings are limited to the University students and to manufacturing sectors. Thus, the generalization of the results of this research remains limited.