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Consumers' Trust in a Brand and the Link to Brand Loyalty

Yousuf Shabbir Lamuwala

Institute of Business Management

Karachi, Pakistan

Email: Std_20578@iobm.edu.pk

Ameet Kumar

Institute of Business Management

Karachi, Pakistan

Email: Std_18035@iobm.edu.pk

Kamal Nawab

Institute of Business Management

Karachi, Pakistan

Email: Std_21018@iobm.edu.pk
Consumers' Trust in a Brand and the Link to Brand Loyalty

Abstract

Brands are important in the consumer market. They are the interface between consumers and

the company, and consumers may develop loyalty to brands. This study proposes that trust in

a brand is important and is a key factor in the development of brand loyalty. Factors

hypothesized to influence trust in a brand include a number of brand characteristics, company

characteristics and consumer-brand characteristics. Respondents representing a broad

spectrum of Singapore consumers were surveyed. The findings reveal that brand

characteristics are relatively more important in their effects on a consumer's trust in a brand.

The results also show that trust in a brand is positively related to brand loyalty. Marketers

should, therefore, take careful consideration of brand factors in the development of trust in a

brand.

Keywords

Trust, loyalty, branding.

INTRODUCTION

Background

Trust and brand loyalty have been addressed as marketing goals for many companies.

Marketing professionals consider loyalty to be a multidimensional phenomenon. Despite the

findings of many researches that satisfaction has a significant favorable impact on brand

loyalty and a true re-purchase behavior of same brand leads to long term business profits.

Therefore, this study investigated the impact of trust on brand loyalty for durable goods.

Primary data has been used in this study and for this purpose a survey has been conducted

through a structured questionnaire. The view of 110 middle class households and business

students was recorded. Our study results show that the trust has significant factor that affect

brand loyalty.

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Consumers' Trust in a Brand and the Link to Brand Loyalty

Problem statement

There is lack of empirical research in brand loyalty that brand loyalty is a measure of the

attachment that a customer has to a brand. Therefore, we are measuring that is the above

statement is true or not?

Research Question

How important is trust in a brand and what are the key factors in development of brand

loyalty?

Justification of research

This study investigated the impact of trust on brand loyalty for durable goods. Secondary data

has been used in this study in which multiple past research papers is been studied and for

primary data, a survey has been conducted through a structured questionnaire.

Research objectives

 To investigate the various factors influencing brand loyalty.

 To investigate the impact of trust on brand loyalty.

 To investigate the role of brand performance in loyalty.

 To investigate the role of brand efficiency to improves trust and brand loyalty.

 To investigates the role of trust for enhancing brand loyalty.

Literature review

Afzal, H., Khan, M. A., ur Rehman, K., Ali, I., & Wajahat, S. (2009). Suggested in

their article using qualitative methodology that the relationship of Brand Reputation,

Brand Competence, and Brand Predictability in the context of Consumer’s Trust in the

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Consumers' Trust in a Brand and the Link to Brand Loyalty

Brand. The research was conducted through a self-reported questionnaire given to the

respondents. Results showed that Brand Reputation, Brand Predictability, and Brand

Competency are the factors which affect consumer’s trust on brand. After the analysis

it is proved that brand reputation, predictability and competency has fair impact on

trust. Consumer believe in brand is build high when; consumer uses that brand and

gathers analysis about brand reputation, its predictability and values. When brand

reputation is fine, it connects the predictability of customer, it has competency to

satisfy the customer’s needs, it helps to develops trust of consumer on brand. By using

effective marketing techniques, brands must build own image which in turn would

build customer believe and credibility. Brands must try to build their competencies so

that customer needs can be satisfied. Companies should work on to build trust of

consumers.

Veloutsou, C., & Moutinho, L. (2009) suggested in their that relationship between

brand reputation and brand tribalism is what is called mutual affection on consumer

buying intension. Companies should use both area of brand in the future as well to

capture more market. Naveen Amblee and Tung Bui (2008) suggested in their article

using quantitative method that online feedback from customers and from its

stakeholders for any product or service can play a huge role for improving any

organization because when comes to online feedback there are free talkers who talk or

criticize freely so that true response can be positive for organization to improve to the

next level. Organizations should rely more on online feedback to improve their

performance.

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Consumers' Trust in a Brand and the Link to Brand Loyalty

Conceptual framework

The first part of the discussion described the relationship between the brand performance and

customer satisfaction. Brands can play a primary role in the customer satisfaction by creating

competitive advantages with brand performance. Perceived differences among products

through branding provide a number of benefits to customers. The manager who influences for

the good brand performance has distinctive options to protect and promote brands. Using

resources, professionals can enhance the quality, breadth and, in the long run, the

effectiveness of their brands.

Brand
Competence
Brand
Brand Liking
H3 Reputation

H2 H4

Brand H1
Trust in H5
Trust in the
Predictability a Brand Company

H6

Brand Loyalty

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Consumers' Trust in a Brand and the Link to Brand Loyalty

Brand Predictability and Brand Loyalty

The result of the study proves that brand reputation, predictability and its competency level

has positive impact on trust which is developed by consumers when they frequently buy and

use this reputed brand and after this they gathers data about brand reputation and its

predictability and competencies comes after a detail process.

Brand loyalty is a type of consumer behavior where consumers become committed and

repeatedly to purchase that brand and make good purchases from the same brands as many

times. Where Loyal customers are the costumer who can consistently purchase products

from their favorite brands, regardless of convenience or price or something else.

Brand Liking and Brand Loyalty

Preferences often require conscious consideration comparison and decision making. It is the

best suitable for product and service where you make bigger and bold decision to purchase or

use of the product. Liking is more subconscious and emotional reaction to the brand. Liking

could also be the first step to preference, it is basically an opportunity to become noticed and

considered something. Liking the brand is a figure that has become greater impact due to

digital influence. You can have high preference without liking but because of superb product

and low and high price and quality without being liked very much, liking the brand has direct

impact on preference even if your qualities were not quite that strong. There’s more to liking

enough Brand loyalty is the process of consumers who continuously purchase one brand’s

products over another brands product. Consumer behavior patterns indicate that consumers

will continue to buy products from a company that has strong trusting relationship with them.

Loyalty is extremely beneficial to businesses because it leads to repeat purchases by

consumers which increase higher revenues, and customer referrals.

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Consumers' Trust in a Brand and the Link to Brand Loyalty

Brand Competence and Brand Loyalty

The degree to which a consumer views a brand as having personality like characteristics by

the following facts like reliable, intelligent, successful, brave, innocent and charming. Is your

brand a reliable? Then it likely falls under the competence factor. This one is characterized as

intelligent, successful, reliable brave, innocent and charming . Think of the brands that have

such qualities like: hard working, secure, technical, confident and energetic.

Brand loyalty is a figure of consumer behavior where consumers become more committed

and engage to brands and make repeat purchases from the same brands many time. Loyal

customers consistently purchase products from their favorite brands, regardless of

convenience or high price. Companies often use different marketing strategies to capture

loyal customer, including loyalty programs such as rewards and benefits to their loyal

customers and incentives such as samples free gifts and free vouchers.

Brand Reputation and Brand Loyalty

Brand reputation depends to how a particular brand rather for an individual or for a company

is viewed by others. A favorable brand reputation means consumers trust your company and

product, and feel good about purchasing your goods or services repeatedly.

Companies that successfully create loyal customers and sometimes it work with brand

ambassadors, consumers are market aware of the brand and they communicate with it

positively among their friends both online and in real time when they have time. This is

basically word-of-mouth marketing and its free for the company and is often an effective way

of creating brand loyalty.

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Consumers' Trust in a Brand and the Link to Brand Loyalty

Trust in Company and Brand Loyalty

Companies with high levels of trust enjoy higher stock prices, improved their profits, and

better retention of key employees. Here’s what trustworthy companies do to strengthen ties.

Yet trust in business has been eroding for some time. Judging by many employee strong

engagement and involvement scores, employees have been disengaging for at least a decade

In a competitive marketplace, brands need to maintain continuous meaningful engagement in

order to identify consumer needs and satisfaction. Brands are most successful when they

address emotional as well as rational values that are important for their target customers.

When the value identification is correct and high, it leads to more customer involvement and

higher numbers of repeat customers. High repeat customer rates lead to higher profits for

brands which directly impact on trust in the company and brand loyalty.

Trust in a brand and Brand Loyalty

The most important quality that you need to develop as part of your brand strategy is

consumer trust in your brand promise. In other words, consumers need to trust that your

brand will deliver on its promise in every interaction, or they’ll turn away from your brand in

search of one that does meet their expectations and delivers on its promise again and again.

Brand loyalty, in marketing, consists of a consumer's commitment to repeatedly purchase or

continue to use the brand. It can be describe by repeated buying of a product, service, or other

positive behaviors such as word of mouth.

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Consumers' Trust in a Brand and the Link to Brand Loyalty

Think of a brand that your trust will meet your expectations every time you purchase and use

it that brand. Due to that level of trust, you’re probably loyal to that brand and choose it over

others like friends and relatives. You might even be extremely loyal to that brand and go out

of your way to find it if it’s not available at the store where you usually buy it you cannot buy

any other brand because your trust is everything about that brand. Your loyalty to that brand

might even lead you to recommend the brand to your friends and family members. You might

even talk about that brand regardless of whether someone asks you about it.

Research Hypotheses

H1: A consumer’s perception that a brand is predictable is positively related to the

consumer’s trust in that brand.

H2: A consumer’s perception that a brand has a good reputation is positively related to the

consumer’s trust in that brand.

H3: A consumer’s perception that a brand is competent is positively related to the

consumer’s trust in that brand.

H4: A consumer’s trust in the company is positively related to the consumer’s trust in that

company’s brand.

H5: A consumer’s liking for a brand is positively related to the consumer’s trust in that

brand.

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Consumers' Trust in a Brand and the Link to Brand Loyalty

H6: A consumer’s trust in the brand is positively related to the consumer’s loyalty to that

brand.

Methodology

The data used in this study was collected by a web-based questionnaire, targeted to the

participants and instructors of a global group Colgate brand in Pakistan.

Procedure (Quantitative Study)

A small intercept survey was used. The methods have merits in speed, economy and control

of respondent type. Furthermore, the presence of an interviewer would ensure a higher

response rate. The Institute of Business Management was selected in Karachi, Pakistan

Online questionnaire were texted to the students. For this research a sample size of 120 was

selected. All the respondents approached participated on voluntary basis.

Convenience sampling technique is employed in this study because of high response rate. To

eliminate differences in response patterns due to different reference points, all respondents

were prompted to answer the questionnaire with reference to non-durable consumer goods.

This category was chosen because consumers purchase these products most frequently.

Sample Size & Population

The target population for the study was IoBM students who have made a purchase decision

for any consumer product. The sampling unit was the individual consumer. Quotas on gender

and age, corresponding to the distribution of Karachi residents were used to ensure a

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Consumers' Trust in a Brand and the Link to Brand Loyalty

representative distribution of consumers in the sample. Individuals below 12 years were

excluded because children might encounter difficulties with the questionnaire.

A small intercept survey was used. To eliminate differences in response patterns due to

different reference points, all respondents were prompted to answer the questionnaire with

reference to non durable consumer goods. This category was chosen because consumers

purchase these products most frequently. The respondents were asked to identify a product

category in which they had frequently made a purchase decision.

Scale and Measure

A seven-point Likert-type scale was used to measure these items, ranging from “Strongly

Disagree” (1) to “Strongly Agree” (7).

Table1- Measures used in this research

Brand Reputation

1. This brand has a reputation for being good.

2. This brand has a reputation for being unreliable*.

3. Other people have told me that this brand is not good*.

4. Other people have told me that this brand is good.

5. This brand is reputed to perform well.

6. I have heard negative comments about this brand*.

Brand Predictably

1. When I buy this brand, I exactly know what to expect.

2. I can always anticipate correctly that how this brand will perform.

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Consumers' Trust in a Brand and the Link to Brand Loyalty

3. This brand is not consistent in its quality*.

4. This brand performs consistently.

5. This brand’s performance tends to be quite variable. I can’t always be sure how will it

perform the next time I buy it.

6. I know this brand is going to perform. This brand can always be counted on perform

as I expect.

Brand Competence

1. This brand is best for the category products.

2. Most other brands are better than this one*.

3. This brand performs better than others brands.

4. This brand is more effective than other brands.

5. This brand meets my needs better than other brands.

6. This brand accomplishes its tasks better than other brands.

Trust In Company.

1. I do not trust this company.

2. I believe that this country will not cheat on me.

3. I feel that I can trust this company completely.

4. I feel secure when I use products from this company because I know that the company

will never let me down.

5. I feel that I can rely on this company to manufacture products that work well

Liking For the Brand.

1. I Like this brand.

2. I prefer other brands over this brand*.

3. This is my favorite brand.

Trust In the Brand

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Consumers' Trust in a Brand and the Link to Brand Loyalty

1. I trust this brand.

2. This brand cannot be counted on to its job*.

3. I feel that I can trust this brand completely.

4. I cannot rely on this brand*.

5. I feel secure when I buy this brand because I know that it will never let me down.

Brand Loyalty.

1. I do not intend to keep buying this brand*.

2. If another brand is having a sale, I will generally buy other brands than this one*.

3. If this brand is not available in the store when I need it, I will buy it another time.

4. If this brand is not available in the store when I need it, I will buy it somewhere else

5. If someone makes a negative comment about this brand, I would defend it.

6. I would not recommend this brand to someone who cannot decide which brand to buy

in the product class*.

7. I would believe the person if that person make negative comment about this brand*

8. I often tell my friends how good this brand is.

*Items are reverse scaled.

Results

The total number of respondents were 120, out of which 76 (63.3%) are males and 44

(36.7%) are females. Their age ranged from 13 to 65 years and 43.3% of the respondents

represents youngster age ranged from 20 to 25 years. The population represents Pakistan.

Descriptive Statistics

To ascertain the normality of the data and to check out the univariate

validity, we have generated the descriptive statistic in SPSS 17, which is

summarized in Table 2.

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Consumers' Trust in a Brand and the Link to Brand Loyalty

Table 2- Descriptive Statistics

Mean Std. Deviation Variance Skewness Kurtosis

Brand Loyalty 4.9944 1.48757 2.213 -.359 -.936

Trust in Brand 5.6806 1.16868 1.366 -1.293 2.511

Liking For Brand 5.0889 1.33315 1.777 -.541 .626

Trust In Company 5.5833 1.34154 1.800 -1.523 2.313

Brand Competence 5.4056 1.21051 1.465 -1.159 2.344

Brand Predictability 5.5222 1.13409 1.286 -1.209 1.681

Brand Reputation 5.5333 1.02299 1.046 -.814 1.227

The table shows that construct Brand Loyalty (Mean=4.99, SD=1.49) has lowest skewness

(0.359) and Trust in the Company (Mean=5.58, SD=1.34) has the highest skewness (1.523).

The Kurtosis for only one item is negative while all the other items have a positive kurtosis,

the highest kurtosis is 2.511 of Trust in Brand (Mean=5.68, SD=1.17) and the lowest kurtosis

is 0.626 of Liking for Brand (Mean=5.09, SD=1.33). Since all the construct are within the

range of ±3.5 therefore it can be assumed that the data has a normal tendency (Hair Jr. et al,

2010).

Reliability of the constructs

The instrument used in this research study contained constructs which were

previously used and tested by Lau, G. T., & Lee, S. H. (1999). Therefore the reliabilities

and validities were previously established. However the reliabilities were re-established

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Consumers' Trust in a Brand and the Link to Brand Loyalty

in context with the current research and the current respondents. Table 3 contains the

summarized results of the tests.

Table 1 - Reliability of the Constructs

No
Original Cronbach's
Constructs of items Mean S.D
Items Alpha
Retained

Brand Reputation 6 0.763 6 5.53 1.02

Brand Predictability 6 0.824 6 5.52 1.134

Brand Competence 6 0.887 6 5.54 1.21

Trust in the Company 5 0.898 4 5.58 1.34

Liking For the Brand 3 0.706 3 5.09 1.33

Trust in the Brand 5 0.875 3 5.68 1.17

Brand Loyalty 8 0.824 3 4.99 1.49

Overall 39 0.825 31 5.42 1.24

The above Table 3 shows that the reliability for Trust in the Company is the highest (α=.898,

M=5.58, SD=1.34) while the reliability for Liking for the Brand is the lowest (α=.706,

M=5.09, SD=1.33). The overall Cronbach’s alpha for the instrument including dependent and

all the independent variables is 0.825, Mean=5.42 and SD=1.24.

Exploratory Factor Analysis (EFA)

Exploratory factor analysis was applied to reveal the latent variables and their relationships

with the constructs. Table 4 contains the summarized results of the test.

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Consumers' Trust in a Brand and the Link to Brand Loyalty

Table 2- EFA for the constructs

Kaiser Barley Test


Cumulative
Original - of Item
Factor
Construct Items Meyer Sphercity at Retained
loading
Olkin P=.000

Brand Reputation 6 0.774 227.8 67.439% 6

Brand Predictability 6 0.745 280.6 54.507% 6

Brand Competence 6 0.774 443.497 64.960% 6

Trust in the Company 5 0.801 332.1 77.062% 4

Liking For the Brand 3 0.563 151.6 67.865% 3

Trust in the Brand 5 0.721 186.9 80.054% 3

Brand Loyalty 8 0.718 128.6 74.046% 3

Principal Factor Analysis was applied on the constructs with Varimax rotation. All

the assumptions of moderate correlations, independent sampling and linear relationships

were met. Kaiser-Meyer-Olkin (KMO) for all the constructs except Liking for the Brand

is greater than 0.6 which is acceptable (Hair et al, 2010). According to Leech (2005) if

one or two variables do not satisfy the condition of 0.6 then there is no issue. The Barley

Test of Spehercity for all the constructs was found to be significant P <.05.

Correlation Analysis

Correlation analysis is done in order to check the relationship between the

variables and to see whether multi-co linearity exists amongst the variables or not

(Bryman & Bell, 2005). For regression analysis checking of correlation is a requirement;

Bryman further highlights that the correlation amongst the constructs should be between

0.20-0.90. If the correlation is less than 0.20 then the item is supposed to be dropped.

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Consumers' Trust in a Brand and the Link to Brand Loyalty

Similarly if correlation value of two items is >0.90 then it either needs to be dropped or

merged (Bryman & Bell, 2005). The results are summarized in Table 5.

Table 5- Summarized Correlations Result


Brand
Brand Trust in Brand Trust in Brand Brand
Competence
Loyalty Brand Liking Company Predictability Reputation

Pearson
1
Correlation
Brand Loyalty
Sig. (2-
tailed)
Pearson
.473** 1
Trust in the Correlation
Brand Sig. (2-
.000
tailed)
Pearson
.400** .747** 1
Liking For the Correlation
Brand Sig. (2-
.000 .000
tailed)
Pearson
.331** .766** .697** 1
Trust in the Correlation
Company Sig. (2-
.000 .000 .000
tailed)
Pearson
Brand .287** .741** .675** .769** 1
Correlation
Competence
Sig. (2-
.001 .000 .000 .000
tailed)
Pearson
.430** .692** .608** .792** .754** 1
Brand Correlation
Predictability Sig. (2-
.000 .000 .000 .000 .000
tailed)
Pearson
.392** .637** .678** .762** .735** .697** 1
Brand Correlation
Reputation Sig. (2-
.000 .000 .000 .000 .000 .000
tailed)
**. Correlation is significant at the 0.01 level (2-tailed).

The above Table 5 shows all the relationships were significant at a level of 0.05

(2-tailed). The correlation of Trust in the Brand (M = 5.68, SD = 1.17, N = 120) with r

(120) = 0.473 was strongest while the weakest was with Brand Competence (M = 5.54,

SD = 1.21, N = 120) with r (120) = 0.287. Additionally correlation tells that the variables

are unique and distinguishing (Hair Jr. et al, 2010).

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Consumers' Trust in a Brand and the Link to Brand Loyalty

Construct validity

Construct validity is utilized to decide how well a test measures what it should

gauge. As it were, is the test developed in a way that it effectively tests what it cases to

test? Construct validity is normally confirmed by contrasting the test with different tests

that measure comparative qualities to perceive how very connected the two measures are.

Construct validity is necessary if the constructs adopted from one culture and is

administered in the other culture. Since all the constructs used in this research were

developed in western world therefore it was necessary to ascertain its validity with the

present set of data. According to Fornell (2010) the construct validity could be

ascertained through convergent validity and discriminant validity. The variance explained

for each construct was greater than .40 (refers to EFA Table 4, which confirms that the

data converges or fulfill convergent validity requirement (Cline, 2010, Hair Jr., 2008).

Discriminant Validity

Discriminant validity was ascertained to ascertain the uniqueness and

distinctiveness of each variable (Hair, Black, Babin, & Anderson, 2010). According to

Fornell (2010) the square root of variant explained should be greater than the square of

each pairs of correlation. The data thus fulfills the discriminant validity requirement

which is presented in Table 6.

Table 6 - Discriminant Validity


Brand Trust in Brand Trust in Brand Brand Brand
Loyalty Brand Liking Company Competence Predictability Reputation

Pearson
Correlation 0.86
Brand
Loyalty Sig. (2-
tailed)
Pearson
0.223729 0.895
Trust in the Correlation
Brand Sig. (2-
0
tailed)

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Consumers' Trust in a Brand and the Link to Brand Loyalty

Pearson
0.16 0.558009 0.82
Liking For Correlation
the Brand Sig. (2-
0 0
tailed)
Pearson
0.109561 0.586756 0.485809 0.88
Trust in the Correlation
Company Sig. (2-
0 0 0
tailed)
Pearson
0.082369 0.549081 0.455625 0.591361 0.806
Brand Correlation
Competence Sig. (2-
0.001 0 0 0
tailed)
Pearson
0.1849 0.478864 0.369664 0.627264 0.568516 0.738
Brand Correlation
Predictability Sig. (2-
0 0 0 0 0
tailed)
Pearson
0.153664 0.405769 0.459684 0.580644 0.540225 0.485809 0.821
Brand Correlation
Reputation Sig. (2-
0 0 0 0 0 0
tailed)

Overall Model Regression Test


Table 7 contains the summarized results of regression for the overall model of the

research study. The hypothesis that the characteristics of the brand predictability, brand

reputation, brand competence, trust in the company, and liking the brand has influence the

consumer’s perception towards Trust in the Brand positively and trust in the brand

influence the consumer’s perception towards Brand Loyalty was tested here through

Regression analysis.

Furthermore the regression analysis also shows that brand predictability, brand

reputation, brand competence, trust in the company, and liking the brand has positive

influence on the consumer’s perception towards Trust and trust in the brand positively

influence the consumer’s perception towards Brand Loyalty was tested here through

Regression analysis (See Table 7a and 7b).

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Consumers' Trust in a Brand and the Link to Brand Loyalty

Table 7a- Model Summary


Std. Error of the
Model R R Square Adjusted R Square Estimate Durbin-Watson

1 .575a .330 .295 1.24941 2.089

Table 7b- Summarized Regression Results


Standardized
Unstandardized Coefficients Coefficients

Model B Std. Error Beta t Sig.

1 (Constant) .413 .704 .587 .558

Trust in the Brand .638 .181 .501 3.527 .001

Liking For the .113 .142 .101 .795 .428


Brand

Trust in the -.398 .178 -.359 -2.238 .027


Company

Brand -.472 .176 -.384 -2.676 .009


Competence

Brand .525 .181 .400 2.908 .004


Predictability

Brand Reputation .409 .193 .281 2.113 .037

a. Dependent Variable: Brand Loyalty

The results of the regression analysis for the overall model indicates that the

predictors brand predictability, brand reputation, brand competence, trust in the company,

and liking the brand match up with the consumer attitude towards Brand Loyalty explain

29.5% of the variance (R2=0.330, F (9.282), p<.05), which according to Cohen(1998) is a

large effect.

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Consumers' Trust in a Brand and the Link to Brand Loyalty

Brand Reputation: The hypothesis that brand reputation has a positive relationship with

customer’s perception towards Trust in the Brand was tested through Regression analysis.

The summarized results are presented in Table 8 below:

Table8- Summarized Regression Results


Standardized
Unstandardized Coefficients Coefficients

Model B Std. Error Beta t Sig.

1 (Constant) 1.654 .456 3.627 .000

Brand .728 .081 .637 8.974 .000


Reputation
Note: Dependent Variable: Trust in the Brand, Independent Variables: Brand
Reputation, R2 = 0.40; Adjusted R2= 0.401, P<.05, F 80.532

The results of the regression indicates that brand reputation characteristics

explains 40.1% of the variance (R2=0.40, P<.05, F 80.532), the effect Β= 0.637,

which according to Cohen(1998) is a large effect and the hypothesis is failed to

reject.

Brand Predictability: The hypothesis that brand predictability has a positive

relationship with customer’s perception towards Trust in the Brand was tested

through Regression analysis. The summarized results are presented in Table 9

below:

Table9- Summarized Regression Results


Standardized
Unstandardized Coefficients Coefficients

Model B Std. Error Beta t Sig.

1 (Constant) 1.743 .386 4.515 .000

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Consumers' Trust in a Brand and the Link to Brand Loyalty

Brand .713 .068 .692 10.410 .000


Predictability

Note: Dependent Variable: Trust in the Brand, Independent Variable: Brand


Predictability, R2 = 0.479; Adjusted R2= 0.474, P<.05, F 108.378

The results of the regression indicates that brand predictability characteristics explains 47.4%

of the variance (R2=0.479, P<.05, F 108.378), the effect Β= 0.692, which according to

Cohen(1998) is a large effect, the hypothesis is failed to reject, and also it has a significant

relationship.

Brand Competence: The hypothesis that brand competence has a positive relationship

with customer’s perception towards Trust in the Brand was tested through Regression

analysis. The summarized results are presented in Table 10 below:

Table10- Summarized Regression Results


Standardized
Unstandardized Coefficients Coefficients

Model B Std. Error Beta t Sig.

1 (Constant) 1.813 .330 5.486 .000

Brand .716 .060 .741 11.992 .000


Competence

Note: Dependent Variable: Trust in the Brand, Independent Variable: Brand


Competence, R2 = 0.549; Adjusted R2= 0.545, P<.05, F 143.799

The results of the regression indicates that brand predictability characteristics explains 54.5%

of the variance (R2=0.549, P<.05, F 143.799), the effect Β= 0.741, which according to

Cohen(1998) is a large effect, the hypothesis is failed to reject, and also it has a significant

relationship.

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Consumers' Trust in a Brand and the Link to Brand Loyalty

Trust in the Company: The hypothesis that trust in the company has a positive

relationship with customer’s perception towards Trust in the Brand was tested through

Regression analysis. The summarized results are presented in Table 11 below:

Table11- Summarized Regression Results


Standardized
Unstandardized Coefficients Coefficients

Model B Std. Error Beta t Sig.

1 (Constant) 1.956 .296 6.606 .000

Trust in the .667 .052 .766 12.932 .000


Company

Note: Dependent Variable: Trust in the Brand, Independent Variable: Trust in the
Company, R2 = 0.586; Adjusted R2= 0.583, P<.05, F 167.246

The results of the regression indicates that Trust in the Company characteristics explains

58.3% of the variance (R2=0.586, P<.05, F 167.246), the effect Β= 0.766, which

according to Cohen(1998) is a large effect and the hypothesis is failed to reject.

Liking for the Brand: The hypothesis that Liking for the brand has a positive

relationship with customer’s perception towards Trust in the Brand was tested through

Regression analysis. The summarized results are presented in Table 12 below:

Table12- Summarized Regression Results


Standardized
Unstandardized Coefficients Coefficients

Model B Std. Error Beta t Sig.

1 (Constant) 2.348 .282 8.322 .000

Liking for the .655 .054 .747 12.210 .000


Brand

22
Consumers' Trust in a Brand and the Link to Brand Loyalty

Table12- Summarized Regression Results


Standardized
Unstandardized Coefficients Coefficients

Model B Std. Error Beta t Sig.

1 (Constant) 2.348 .282 8.322 .000

Liking for the .655 .054 .747 12.210 .000


Brand

Note: Dependent Variable: Trust in the Brand, Independent Variable: Liking for
the Brand, R2 = 0.558; Adjusted R2= 0.544, P<.05, F 149.076

The results of the regression indicates that Liking for the Brand characteristics explains

54.4% of the variance (R2=0.558, P<.05, F 149.076), the effect Β= 0.747, which according to

Cohen(1998) is a large effect, the hypothesis is failed to reject, and also it has a significant

relationship.

Trust in the Brand: The hypothesis that Trust in the brand has a positive relationship

with customer’s perception towards Brand Loyalty was tested through Regression analysis.

The summarized results are presented in Table 13 below:

Table13- Summarized Regression Results


Standardized
Unstandardized Coefficients Coefficients

Model B Std. Error Beta t Sig.

1 (Constant) 1.577 .599 2.633 .010

Trust in the .602 .103 .473 5.827 .000


Brand

Note: Dependent Variable: Brand Loyalty, Independent Variable: Trust in the


Brand, R2 = 0.223; Adjusted R2= 0.217, P<.05, F 33.948

23
Consumers' Trust in a Brand and the Link to Brand Loyalty

The results of the regression indicates that Trust in the Brand characteristics explains 21.7%

of the variance (R2=0.223, P<.05, F 33.948), the effect Β= 0.473, which according to

Cohen(1998) is a large effect, the hypothesis is failed to reject, and also it has a significant

relationship.

24
Consumers' Trust in a Brand and the Link to Brand Loyalty

Discussion and Conclusion

Brands are very important for consumer market, brand is the key factor between consumers
and company. Consumers make loyalty from good brands. Trust in the brand is the important
factor to increase brand loyalty. Some factors which are heavily impact on trust in the brand
which are include as consumer characteristic brand characteristic and company characteristics

Brand reputation:

It would appear that marketers often suffer from the delusion that customers or potential
customers actually want a relationship with the organization. In fact, not all customers desire
a relationship with an organization, with some individuals more likely than others to form
relationships (Barnes, 1994) Consumers often rely on brand names rather than
independently gather information on the Internet . Word-of-mouth (WOM) plays an
important role in consumers’ perceptions of brands. Consumers who are very pleased with a
brand will make their opinions known to other consumers through WOM communication.
Conversely, they will tell others about negative experiences and may also switch brands .
Previous research has found that on-line brand trust is influenced strongly by eWOM
(Amblee,2008) Good reputation could lead to positive expectations and bad reputation could
lead to negative image of the brand (Creed and Miles, 1996) ). Reputation means
trustworthiness, integrity, and honesty. It can be seen from past experience of third party’s
trustworthiness, integrity, and honesty. Brand reputation can be judged from consumer
opinion, comments, estimation and beliefs, if people are suggesting the usage of a brand then
it is considered as a sign of good reputation. A brand’s reputation refers to the attitude of
consumers that the brand is good and reliable. Brand reputation can be developed through
advertising and public relations, and it enhances its quality.(Afzal et al 2010)

Trust in the brand:

For many years trust has a understanding concept.Early research drew on Bonoma and
Johnston’s seminal work (1978) and on Dwyer, Schurr and Oh’s model of relationship
development processes (1987). Morgan and Hunt (1994) linked trust and commitment,
calling them ‘key variables’ in the exchange network between a company and its various
partners because the variables encourage corporate leaders to invest in a long-term
relationship and not to give in to appealing, short-term alternatives. Commitment and trust
were then used in the attempt to explain the mechanisms underlying stable preferences
(Beatty et al., 1988) Hess (1995) is apparently one of the first to propose a special brand trust
scale, defined as a multi-dimensional construct containing an ‘honesty’ dimension, an
‘altruism’ dimension, and a ‘reliability’ dimension. Trust means confidence on exchange
partner’s reliability and integrity (Morgan and Hunt 1994). Trust shows consumer
commitment and satisfaction with particular brand. An organization uses trust in brand as a
risk-reduction mechanism (Doney and Cannon 1997). According to O’Shaughnessy (1992)
faithfulness is everlasting wish, a readiness to do something with no computation of instant
expenses and profit. Hence, faithfulness to a brand engages trust in it. Trust means

25
Consumers' Trust in a Brand and the Link to Brand Loyalty

confidence on exchange partner’s reliability and integrity (Morgan and Hunt 1994). Trust
shows consumer commitment and satisfaction with particular brand. An organization uses
trust in brand as a risk-reduction mechanism (Doney and Cannon 1997). Trust can also be
considered as goodwill and willingness that enables the consumer to take risk. Goodwill is
developed on the bases of past experiences. Trust is an expectation, which may cause a
positive outcome, despite the possibility that it may cause a negative outcome (Worchel,
1979). Boon and Holmes (1991) defined trust as a condition linking certain optimistic
opportunity about another’s intention with respect to oneself in risky state of affairs.
Consumer’s trust in brand is a variable that generates customers’ commitment, particularly
high involvement situation, in which its effect is strong in assessment as a whole contentment
(Moorman, Zaltman, and Deshpande, 1992; Morgan, and Hunt, 1994; Delgado and Munuera
2001).

Liking for the brand:

Humor in ads may influence product liking in multiple ways. There is broad agreement
among advertising researchers and practitioners that humor enhances the attention paid to an
ad (e.g., Madden & Weinberger, 1982). Evaluative conditioning can affect product liking
through different mechanisms (Gawronski & Bodenhausen, 2006).

Brand predictability:

Predictability is ability of one buyer which is perceived by the other buyer (Doney and
Cannon, 1997). A brand’s obviousness enhances assurance because the customer knows that
nothing unforeseen may occur when it is used. As such, product predictability enhances trust
in a brand because certainty builds optimistic outlook (Kasperson, Golding, and Tuler, 1992).

Brand competence :

A competent brand is one that has the ability to crack a customer’s problem and to meet the
need (Butler and Cantrell,1984; Butler, 1991) Utilization of brand is only one way to find out
brand competency (Lau, and Lee, 1999; Christou, 2004). Consumers can find out a brand’s
competency through direct usage or word-of mouth. Good brands are that which are able to
satisfy the needs of a customer and its attributes must be compatible with customer’s needs.
Brand ability is the properties of brand which are perceived by customer as value. Butler and
Cantrell (1984), Butler (1991), Deutsch (1960), Cook and Wall (1980), and Sitkin and Roth
(1998) measured it as a property to satisfy the needs of customer.

Brnd loyalty:

loyalty programs are often misunderstood and misapplied. When it comes to design and
implementation, too many companies treat rewards as short-term promotional giveaways
(O’Brien and Jones 1995). Dick and Basu (1994) classified loyalty into four different
categories based on repeated patronage and relative attitude. The categories are loyalty,
spurious loyalty, latent loyalty, and no loyalty. . Some attitudinal measures of brand loyalty

26
Consumers' Trust in a Brand and the Link to Brand Loyalty

incorporate items referring to repurchase intention andd word-of-mouth (Narayandas, 1996;


Sirdesmukh et al., 2002) or cross-buying potential (Kim et al., 2001). Examples of behavior-
oriented measures of brand loyalty include share of wallet, percentage of brand purchases in a
product category for fast moving consumer goods, and repurchase behavior (Baldinger et al.,
2002; DeKimpe et al., 1997; Sirdesmukh et al., 2002).

Trust in the company:

Even though trust is so important, it has been very difficult to study. One reason is that it is
very difficult to define and measure (Mayer et al., 1995; Gulati, 1995). According to Román,
S. (2003) The findings revealed that a salesperson’s ethical behaviour leads to higher
customer satisfaction leads to trust in the company, and loyalty to the brand that the
salesperson represents. Managerial and research implications are also discussed. The
antecedents and consequences of trust were examined empirically in two related studies. The
first examined the effect of perceived company size and perceived company reputation on the
level of trust for that online company by customers (Jarvenpaa et al., 2000).

The above Table 5 shows all the relationships were significant at a level of 0.05 (2-tailed).
The correlation of Trust in the Brand (M = 5.68, SD = 1.17, N = 120) with r (120) = 0.473
was strongest while the weakest was with Brand Competence (M = 5.54, SD = 1.21, N = 120)
with r (120) = 0.287. Additionally correlation tells that the variables are unique and
distinguishing (Hair Jr. et al, 2010).

Table 8 shows that brand reputation has a positive relationship with towards Trust in the
Brand tested through Regression analysis. Table 9 show that brand predictability has a
positive relationship with towards Trust in the Brand tested through Regression analysis.
Table 10 shows that brand competency has a positive relationship with towards Trust in the
Brand tested through Regression analysis. Table 11 shows that trust in the company have a
positive relationship with towards Trust in the Brand tested through Regression analysis.
Table 12 shows that liking for the brand has a positive relationship with towards Trust in the
Brand tested through Regression analysis. Table 13 shows that brand loyalty has a positive
relationship with towards Trust in the Brand tested through Regression analysis.

27
Consumers' Trust in a Brand and the Link to Brand Loyalty

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