Why Parent Brand Trust Is Not Enough? Entitativity, Perceived Quality, and Perceived Risk in Life Insurance Trust Transfer

This research investigates the mechanisms by which trust transfers from prominent parent brands to their affiliated life insurance sub-brands in Indonesia. While consumers may trust established conglomerates, this trust may not automatically translate into credibility for their life insurance extensions. The study examines how entitativity, operationalized as perceived similarity and brand tie, together with perceived quality and perceived risk, facilitate sub-brand trust and behavioral intention. Using a quantitative survey approach, data from 483 valid respondents were evaluated via Partial Least Squares Structural Equation Modeling (PLS-SEM). The analysis identified a significant but weak direct effect of parent brand trust on sub-brand trust. This shows that a reputable parent brand may help establish initial trust, but cannot substitute for the consumer’s own evaluation of the life insurance sub-brand. Clearer parent–sub-brand unity, higher perceived quality, and lower perceived risk promote trust in the sub-brand, which is a significant driver of behavioral intention. This data was limited to only Indonesian respondents. This study contributes to trust transfer literature by conceptualizing entitativity as a higher-order construct in hierarchical brand relationships, offering practical guidance for life insurance companies to leverage parent brand equity through service excellence and clearer brand integration.