Brand Trust and Brand Loyalty: A Moderation and Mediation Perspective
Current Journal of Applied Science and Technology,
Page 1-17
DOI:
10.9734/cjast/2019/v38i430376
Abstract
This study aims to empirically test the effect of brand trust on brand commitment and brand loyalty while examining the mediating and moderating roles of brand commitment and brand reputation respectively. To achieve this aim, data is collected from 412 smartphone users in South Korea. The hypotheses advanced to achieve this aim are tested through the structural equations modeling technique. The results of the study reveal that brand trust and brand commitment positively and significantly influence brand loyalty. The study further finds that brand trust is positively and significantly related to brand commitment, while the latter mediates the relationship between brand trust and brand loyalty. Equally, the study finds support for the moderating role of brand reputation on the relationship between brand trust and brand commitment. The study provides managerial and theoretical illuminations into comprehending brand trust, brand commitment, brand reputation, and brand loyalty.
Keywords:
- Brand trust
- brand commitment
- brand reputation
- brand loyalty.
How to Cite
Kwan Soo Shin, S., Amenuvor, F. E., Basilisco, R., & Owusu-Antwi, K. (2019). Brand Trust and Brand Loyalty: A Moderation and Mediation Perspective. Current Journal of Applied Science and Technology, 38(4), 1-17. https://doi.org/10.9734/cjast/2019/v38i430376
References
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Ramirez R, Merunka D. Brand experience effects on brand attachment: The role of brand trust, age, and income; 2019.
Bhandari M, Rodgers S. What does the brand say? Effects of brand feedback to negative eWOM on brand trust and purchase intentions. International Journal of Advertising. 2018;37(1):125-141.
Becerra PE, Badrinarayanan V. The influence of brand trust and brand identification on brand evangelism. Journal of Product & Brand Management. 2013; 22(5/6):371-383.
Grönroos C. Relationship marketing: challenges for the organization. Journal of Business Research. 1999;46(3):327-335.
Zeithaml VA. Mary Jo Bitner. Service Marketing, Integrating Customer Focus Across The Firm; 2000.
Das G, Agarwal J, Malhotra NK, Varshneya G. Does brand experience translate into brand commitment?: A mediated-moderation model of brand passion and perceived brand ethicality. Journal of Business Research. 2019;95: 479-490.
Egan J. Relationship marketing: Exploring relational strategies in marketing (2nd Ed.). Essex, UK: Prentice Hall; 2004.
Payne A, Frow P. Services Relationship Marketing: A Sector Case Study, in this book; 2000.
Fournier S. Consumers and their brands: developing relationship theory in consumer research. Journal of Consumer Research. 1998;24:343–73.
Garbarino E, Johnson MS. The different roles of satisfaction, trust, and commitment in customer relationships. Journal of Marketing. 1999;63(2):70-87.
Doney PM, Cannon JP. An examination of the nature of trust in buyer-seller relationships. Journal of Marketing. 1997;61(2):35-51.
El Naggar RAA, Bendary N. The impact of experience and brand trust on brand loyalty, while considering the mediating effect of brand Equity dimensions, an empirical study on mobile operator subscribers in Egypt. The Business & Management Review. 2017;9(2):16-25.
Zehra SJ, Arshad U. Brand trust And Image: Effect on customers’ satisfaction. Journal of Marketing and Logistics (JML). 2019;2:50-64.
Sahin A, Zehir C, Kitapçı H. The effects of brand experiences, trust and satisfaction on building brand loyalty; an empirical research on global brands. Procedia-Social and Behavioral Sciences. 2011;24:1288-1301.
Reast JD. Brand trust and brand extension acceptance: The relationship. Journal of Product & Brand Management. 2005;14:4-13.
Kabadayi ET, Alan AK. Brand trust and brand affect: Their strategic importance on brand loyalty. Journal of Global Strategic Management. 2012;11(6):81-88.
Morgan RM, Hunt SD. The commitment-trust theory of relationship marketing. Journal of Marketing. 1994;58(3):20-38.
Delgado-Ballester E, Munuera-Aleman JL, Yague-Guillen MJ. Development and validation of a brand trust scale. International Journal of Market Research. 2003;45(1):35-54.
Chaudhuri A, Holbrook MB. The chain of effects from brand trust and brand affect to brand performance: The role of brand loyalty. Journal of Marketing. 2001;65(2): 81–93.
Dalziel N, Harris F, Laing A. A multidimensional typology of customer relationships: From faltering to affective. International Journal of Bank Marketing. 2011;29(5):398-432
Krishnan HS. Characteristics of memory associations: A consumer-based brand equity perspective. International Journal of Research in Marketing. 1996;13(4):389-405.
Oly Ndubisi N. Relationship marketing and customer loyalty. Marketing Intelligence & Planning. 2007;25(1):98-106.
Lewis BR, Soureli M. The antecedents of consumer loyalty in retail banking. Journal of Consumer Behaviour: An International Research Review. 2006;5(1):15-31.
Ramesh Kumar S, Advani JY. Factors affecting brand loyalty: A study in an emerging market on fast moving consumer goods. Journal of Customer Behaviour. 2005;4(2):251-275.
Sirdeshmukh D, Singh J, Sabol B. Consumer trust, value, and loyalty in relational exchanges. Journal of Marketing. 2002;66:15–3.
Amani Z. Commitment as a Mediator of the Relationship between Trust and Relationship Loyalty to Retailer. Journal of Business Studies Quarterly. 2015;6(3):144.
Verhoef PC, Franses PH, Hoekstra JC. The effect of relational constructs on customer referrals and number of services purchased from a multiservice provider: does age of relationship matter? Journal of the Academy of Marketing Science. 2002;30(3):202-16.
Ring PS, Van de Ven AH. Structuring Cooperative Relationships between Organizations, Strategic Management Journal. 1992;13(7):483-498.
Moorman C, Zaltman G, Deshpande R. Relationships between providers and users of marketing research: The dynamics of trust within and between organizations. Journal of Marketing Research. 1992; 29(3):314–329.
Rempel, John K, John G. Holmes, Mark P. Zanna. Trust in Close Relationships Journal of Personality and Social Psychology. 1985;49(1):95-112.
Cambier F, Poncin I. Proclaiming brand transparency: An effective strategy for advertising customer-ideated new products. In 2018 AFM International Congress; 2018.
Rieke ML, Guastello SJ. Unresolved issues in honesty and integrity testing; 1995.
Foroudi P. Influence of brand signature, brand awareness, brand attitude, brand reputation on hotel industry’s brand performance. International Journal of Hospitality Management, 2019;76:271-285.
Gurviez P, Korchia M. Test of a consumer-brand relationship model including trust and three consequences. In Thirtieth International Research Seminar in Marketing. 2003;1-20.
Rusbult CE, Buunk BP Commitment processes in close relationships: An interdependence analysis. Journal of Social and Personal Relationships. 1993; 10(2):175-204.
Rusbult CE, Farrell D. A longitudinal test of the investment model: The impact on job satisfaction, job commitment, and turnover of variations in rewards, costs, alternatives, and investments. Journal of Applied Psychology.1983;68(3):429.
Dwyer FR, Schurr PH, Oh S. Developing buyer-seller relationships. Journal of Marketing. 1987;51(2):11-27.
Montgomery NV, Rajagopal P. Motivated reconstruction: The effect of brand commitment on false memories. Journal of Experimental Psychology: Applied, 2018; 24(2):159.
Gundlach GT, Achrol RS, Mentzer JT. The structure of commitment in exchange. Journal of Marketing. 1995;59(1):78-92.
Chaudhuri A, Holbrook MB. Product-class effects on brand commitment and brand outcomes: The role of brand trust and brand affect. Journal of Brand Management. 2002;10(1):33-58.
Jacoby J, Chestnut RW. Brand loyalty measurement and management; 1978.
Coelho PS, Rita P, Santos ZR. On the relationship between consumer-brand identification, brand community, and brand loyalty. Journal of Retailing and Consumer Services. 2018;43:101-110.
Rosenbaum-Elliott R, Percy, Pervan S. Strategic brand management; 2011.
Kim SS, Choe JYJ, Petrick JF. The effect of celebrity on brand awareness, perceived quality, brand image, brand loyalty, and destination attachment to a literary festival. Journal of Destination Marketing & Management. 2018;9:320-329.
Dick AS, Basu K. Customer loyalty: toward an integrated conceptual framework. Journal of the Academy of Marketing Science. 1994;22(2):99-113.
Mittal V, Kamakura WA. Satisfaction, repurchase intent, and repurchase behavior: Investigating the moderating effect of customer characteristics. Journal of Marketing Research. 2001;38(1):131-142.
Aluri A, Price BS, McIntyre NH. Using machine learning to cocreate value through dynamic customer engagement in a brand loyalty program. Journal of Hospitality & Tourism Research, 2019; 43(1):78-100.
Bloemer JM, Kasper HD. The complex relationship between consumer satisfaction and brand loyalty. Journal of Economic Psychology. 1995;16(2):311-329.
Khan I, Fatma M. Connecting the dots between CSR and brand loyalty: the mediating role of brand experience and brand trust. International Journal of Business Excellence. 2019;17(4):439- 455.
Loureiro SMC, Sarmento EM, Le Bellego, G. The effect of corporate brand reputation on brand attachment and brand loyalty: Automobile sector. Cogent Business & Management. 20174;4(1):1360031.
Han SH, Nguyen B, Lee TJ. Consumer-based chain restaurant brand equity, brand reputation, and brand trust. International Journal of Hospitality Management. 2015; 50:84-93.
Sengupta AS, Balaji MS, Krishnan BC. How customers cope with service failure? A study of brand reputation and customer satisfaction. Journal of Business Research. 2015;68(3):665-674.
Herbig P, Milewicz J. The relationship of reputation and credibility to brand success. Pricing Strategy and Practice. 1997; 5(1):25-29.
Joo, B., & Hwang, S. Impact of Negative Review Type, Brand Reputation, and Opportunity Scarcity Perception on Preferences of Fashion Products in Social Commerce. Journal of Fashion Business. 2016;20(4):207-225.
Moorthy K. Sridhar. Using Game Theory to Model Competition. Marketing. 1985; 262-282.
Kapferer J. Strategic brand management, 2/e, Kogan Page; 1997.
Loureiro SMC, Kaufmann HR. Luxury values as drivers for affective commitment: The case of luxury car tribes. Cogent Business & Management. 2016;3(1), 1171192.
Walsh G, Beatty SE. Customer-based corporate reputation of a service firm: Scale development and validation. Journal of the Academy of Marketing Science. 2007;35(1):127-143.
Amis J. Good things come to those who wait”: The strategic management of image and reputation at Guinness. European Sport Management Quarterly. 2003;3(3): 189-214.
Japutra A, Ekinci Y, Simkin L. Exploring brand attachment, its determinants and outcomes. Journal of Strategic Marketing, 2014;22(7):616-630.
Alrubaiee L, Al-Nazer N. Investigate the impact of relationship marketing orientation on customer loyalty: The customer's perspective. International Journal of Marketing Studies. 2010;2(1):155.
Vazifedoust Hosein, Omidzadeh Rezvan. Examining the effect of automatic services on customer commitment in banking industry, Marketing Management Magazine. 2013;20.
Ghasemi N, Beiranvand T. Effect of Customer Commitment on Trust and Loyalty of Customers towards Air Travel Agencies in Ahwaz City, Iran. Journal of Administrative Management, Education and Training. 2016;12:92-101.
Zeithaml VA. Consumer perceptions of price, quality and value: A means-end model and synthesis of evidence. The Journal of Marketing. 1988;52:2-22.
Aydin S, Özer, G. The analysis of antecedents of customer loyalty in the Turkish mobile telecommunication market. European Journal of Marketing. 2005; 39(7/8):910-925.
King RA, Racherla P, Bush VD. What we know and don't know about online word-of-mouth: A review and synthesis of the literature. Journal of Interactive Marketing. 2014;28(3):167-183.
DeVellis Robert F. Scale development: Theory and Applications; 2003.
Bagozzi RP, Yi Y. On the evaluation of structural equation models. Journal of the Academy of Marketing Science. 1988; 16(1):74-94.
Bagozzi RP, Yi Y. Specification, evaluation, and interpretation of structural equation models. Journal of the Academy of Marketing Science. 2012;40(1):8-34.
Byrne BM. Structural equation modeling with LISREL, PRELIS, and SIMPLIS: Basic concepts, applications, and programming. Psychology Press; 2013.
Nunnally JC, Bernstein IH. McGraw-Hill series in psychology. Psychometric theory. New York, NY, US: McGraw-Hill; 1967.
Ramirez R, Merunka D. Brand experience effects on brand attachment: The role of brand trust, age, and income; 2019.
Bhandari M, Rodgers S. What does the brand say? Effects of brand feedback to negative eWOM on brand trust and purchase intentions. International Journal of Advertising. 2018;37(1):125-141.
Becerra PE, Badrinarayanan V. The influence of brand trust and brand identification on brand evangelism. Journal of Product & Brand Management. 2013; 22(5/6):371-383.
Grönroos C. Relationship marketing: challenges for the organization. Journal of Business Research. 1999;46(3):327-335.
Zeithaml VA. Mary Jo Bitner. Service Marketing, Integrating Customer Focus Across The Firm; 2000.
Das G, Agarwal J, Malhotra NK, Varshneya G. Does brand experience translate into brand commitment?: A mediated-moderation model of brand passion and perceived brand ethicality. Journal of Business Research. 2019;95: 479-490.
Egan J. Relationship marketing: Exploring relational strategies in marketing (2nd Ed.). Essex, UK: Prentice Hall; 2004.
Payne A, Frow P. Services Relationship Marketing: A Sector Case Study, in this book; 2000.
Fournier S. Consumers and their brands: developing relationship theory in consumer research. Journal of Consumer Research. 1998;24:343–73.
Garbarino E, Johnson MS. The different roles of satisfaction, trust, and commitment in customer relationships. Journal of Marketing. 1999;63(2):70-87.
Doney PM, Cannon JP. An examination of the nature of trust in buyer-seller relationships. Journal of Marketing. 1997;61(2):35-51.
El Naggar RAA, Bendary N. The impact of experience and brand trust on brand loyalty, while considering the mediating effect of brand Equity dimensions, an empirical study on mobile operator subscribers in Egypt. The Business & Management Review. 2017;9(2):16-25.
Zehra SJ, Arshad U. Brand trust And Image: Effect on customers’ satisfaction. Journal of Marketing and Logistics (JML). 2019;2:50-64.
Sahin A, Zehir C, Kitapçı H. The effects of brand experiences, trust and satisfaction on building brand loyalty; an empirical research on global brands. Procedia-Social and Behavioral Sciences. 2011;24:1288-1301.
Reast JD. Brand trust and brand extension acceptance: The relationship. Journal of Product & Brand Management. 2005;14:4-13.
Kabadayi ET, Alan AK. Brand trust and brand affect: Their strategic importance on brand loyalty. Journal of Global Strategic Management. 2012;11(6):81-88.
Morgan RM, Hunt SD. The commitment-trust theory of relationship marketing. Journal of Marketing. 1994;58(3):20-38.
Delgado-Ballester E, Munuera-Aleman JL, Yague-Guillen MJ. Development and validation of a brand trust scale. International Journal of Market Research. 2003;45(1):35-54.
Chaudhuri A, Holbrook MB. The chain of effects from brand trust and brand affect to brand performance: The role of brand loyalty. Journal of Marketing. 2001;65(2): 81–93.
Dalziel N, Harris F, Laing A. A multidimensional typology of customer relationships: From faltering to affective. International Journal of Bank Marketing. 2011;29(5):398-432
Krishnan HS. Characteristics of memory associations: A consumer-based brand equity perspective. International Journal of Research in Marketing. 1996;13(4):389-405.
Oly Ndubisi N. Relationship marketing and customer loyalty. Marketing Intelligence & Planning. 2007;25(1):98-106.
Lewis BR, Soureli M. The antecedents of consumer loyalty in retail banking. Journal of Consumer Behaviour: An International Research Review. 2006;5(1):15-31.
Ramesh Kumar S, Advani JY. Factors affecting brand loyalty: A study in an emerging market on fast moving consumer goods. Journal of Customer Behaviour. 2005;4(2):251-275.
Sirdeshmukh D, Singh J, Sabol B. Consumer trust, value, and loyalty in relational exchanges. Journal of Marketing. 2002;66:15–3.
Amani Z. Commitment as a Mediator of the Relationship between Trust and Relationship Loyalty to Retailer. Journal of Business Studies Quarterly. 2015;6(3):144.
Verhoef PC, Franses PH, Hoekstra JC. The effect of relational constructs on customer referrals and number of services purchased from a multiservice provider: does age of relationship matter? Journal of the Academy of Marketing Science. 2002;30(3):202-16.
Ring PS, Van de Ven AH. Structuring Cooperative Relationships between Organizations, Strategic Management Journal. 1992;13(7):483-498.
Moorman C, Zaltman G, Deshpande R. Relationships between providers and users of marketing research: The dynamics of trust within and between organizations. Journal of Marketing Research. 1992; 29(3):314–329.
Rempel, John K, John G. Holmes, Mark P. Zanna. Trust in Close Relationships Journal of Personality and Social Psychology. 1985;49(1):95-112.
Cambier F, Poncin I. Proclaiming brand transparency: An effective strategy for advertising customer-ideated new products. In 2018 AFM International Congress; 2018.
Rieke ML, Guastello SJ. Unresolved issues in honesty and integrity testing; 1995.
Foroudi P. Influence of brand signature, brand awareness, brand attitude, brand reputation on hotel industry’s brand performance. International Journal of Hospitality Management, 2019;76:271-285.
Gurviez P, Korchia M. Test of a consumer-brand relationship model including trust and three consequences. In Thirtieth International Research Seminar in Marketing. 2003;1-20.
Rusbult CE, Buunk BP Commitment processes in close relationships: An interdependence analysis. Journal of Social and Personal Relationships. 1993; 10(2):175-204.
Rusbult CE, Farrell D. A longitudinal test of the investment model: The impact on job satisfaction, job commitment, and turnover of variations in rewards, costs, alternatives, and investments. Journal of Applied Psychology.1983;68(3):429.
Dwyer FR, Schurr PH, Oh S. Developing buyer-seller relationships. Journal of Marketing. 1987;51(2):11-27.
Montgomery NV, Rajagopal P. Motivated reconstruction: The effect of brand commitment on false memories. Journal of Experimental Psychology: Applied, 2018; 24(2):159.
Gundlach GT, Achrol RS, Mentzer JT. The structure of commitment in exchange. Journal of Marketing. 1995;59(1):78-92.
Chaudhuri A, Holbrook MB. Product-class effects on brand commitment and brand outcomes: The role of brand trust and brand affect. Journal of Brand Management. 2002;10(1):33-58.
Jacoby J, Chestnut RW. Brand loyalty measurement and management; 1978.
Coelho PS, Rita P, Santos ZR. On the relationship between consumer-brand identification, brand community, and brand loyalty. Journal of Retailing and Consumer Services. 2018;43:101-110.
Rosenbaum-Elliott R, Percy, Pervan S. Strategic brand management; 2011.
Kim SS, Choe JYJ, Petrick JF. The effect of celebrity on brand awareness, perceived quality, brand image, brand loyalty, and destination attachment to a literary festival. Journal of Destination Marketing & Management. 2018;9:320-329.
Dick AS, Basu K. Customer loyalty: toward an integrated conceptual framework. Journal of the Academy of Marketing Science. 1994;22(2):99-113.
Mittal V, Kamakura WA. Satisfaction, repurchase intent, and repurchase behavior: Investigating the moderating effect of customer characteristics. Journal of Marketing Research. 2001;38(1):131-142.
Aluri A, Price BS, McIntyre NH. Using machine learning to cocreate value through dynamic customer engagement in a brand loyalty program. Journal of Hospitality & Tourism Research, 2019; 43(1):78-100.
Bloemer JM, Kasper HD. The complex relationship between consumer satisfaction and brand loyalty. Journal of Economic Psychology. 1995;16(2):311-329.
Khan I, Fatma M. Connecting the dots between CSR and brand loyalty: the mediating role of brand experience and brand trust. International Journal of Business Excellence. 2019;17(4):439- 455.
Loureiro SMC, Sarmento EM, Le Bellego, G. The effect of corporate brand reputation on brand attachment and brand loyalty: Automobile sector. Cogent Business & Management. 20174;4(1):1360031.
Han SH, Nguyen B, Lee TJ. Consumer-based chain restaurant brand equity, brand reputation, and brand trust. International Journal of Hospitality Management. 2015; 50:84-93.
Sengupta AS, Balaji MS, Krishnan BC. How customers cope with service failure? A study of brand reputation and customer satisfaction. Journal of Business Research. 2015;68(3):665-674.
Herbig P, Milewicz J. The relationship of reputation and credibility to brand success. Pricing Strategy and Practice. 1997; 5(1):25-29.
Joo, B., & Hwang, S. Impact of Negative Review Type, Brand Reputation, and Opportunity Scarcity Perception on Preferences of Fashion Products in Social Commerce. Journal of Fashion Business. 2016;20(4):207-225.
Moorthy K. Sridhar. Using Game Theory to Model Competition. Marketing. 1985; 262-282.
Kapferer J. Strategic brand management, 2/e, Kogan Page; 1997.
Loureiro SMC, Kaufmann HR. Luxury values as drivers for affective commitment: The case of luxury car tribes. Cogent Business & Management. 2016;3(1), 1171192.
Walsh G, Beatty SE. Customer-based corporate reputation of a service firm: Scale development and validation. Journal of the Academy of Marketing Science. 2007;35(1):127-143.
Amis J. Good things come to those who wait”: The strategic management of image and reputation at Guinness. European Sport Management Quarterly. 2003;3(3): 189-214.
Japutra A, Ekinci Y, Simkin L. Exploring brand attachment, its determinants and outcomes. Journal of Strategic Marketing, 2014;22(7):616-630.
Alrubaiee L, Al-Nazer N. Investigate the impact of relationship marketing orientation on customer loyalty: The customer's perspective. International Journal of Marketing Studies. 2010;2(1):155.
Vazifedoust Hosein, Omidzadeh Rezvan. Examining the effect of automatic services on customer commitment in banking industry, Marketing Management Magazine. 2013;20.
Ghasemi N, Beiranvand T. Effect of Customer Commitment on Trust and Loyalty of Customers towards Air Travel Agencies in Ahwaz City, Iran. Journal of Administrative Management, Education and Training. 2016;12:92-101.
Zeithaml VA. Consumer perceptions of price, quality and value: A means-end model and synthesis of evidence. The Journal of Marketing. 1988;52:2-22.
Aydin S, Özer, G. The analysis of antecedents of customer loyalty in the Turkish mobile telecommunication market. European Journal of Marketing. 2005; 39(7/8):910-925.
King RA, Racherla P, Bush VD. What we know and don't know about online word-of-mouth: A review and synthesis of the literature. Journal of Interactive Marketing. 2014;28(3):167-183.
DeVellis Robert F. Scale development: Theory and Applications; 2003.
Bagozzi RP, Yi Y. On the evaluation of structural equation models. Journal of the Academy of Marketing Science. 1988; 16(1):74-94.
Bagozzi RP, Yi Y. Specification, evaluation, and interpretation of structural equation models. Journal of the Academy of Marketing Science. 2012;40(1):8-34.
Byrne BM. Structural equation modeling with LISREL, PRELIS, and SIMPLIS: Basic concepts, applications, and programming. Psychology Press; 2013.
Nunnally JC, Bernstein IH. McGraw-Hill series in psychology. Psychometric theory. New York, NY, US: McGraw-Hill; 1967.
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