THE EFFECT OF BRAND CREDIBILITY ON CONSUMER LOYALTY: THE MEDIATING ROLE OF PERCEIVED QUALITY AND CONSUMER SATISFACTION IN HANGZHOU.

Abstract

In relational services (like retail banking and telecommunications), where long-term client connections are the foundation of revenue, customer churn is an ever-growing problem. For the most part, companies in this industry have looked to customer happiness and service quality as their primary means of retaining customers. In order to control the attrition rate of relational service users, the present research looks at the significant supplementary function of the brand. In particular, researchers argue, from an information economics perspective, that the brand's credibility is fundamental to the role the brand might play in this process. The study's findings shed light on the importance of the brand in maintaining connections with customers over the long term and explain the connection between brand credibility and the standard CRM metrics of customer happiness and service excellence. Customer satisfaction and loyalty mediate the relationships between brand credibility and positive word-of-mouth, which in turn decreases customer switching behaviors, according to research on retail bank and long-distance telephone company customers. researchers go over the study's theoretical and practical implications. The following results are derived from a survey of active Taiwanese mobile telecom service customers. To start, researchers discovered that tangibles and responsiveness do not significantly impact service quality and value perception. However, assurance, dependability, and network quality do. Second, perceived value mediates, to a lesser extent, the relationship between total service quality and brand equity. Third, the links between perceived value and certain aspects of service quality are mediated differently by total service quality. As a conclusion, brand equity is directly impacted by empathy and network quality.