EXAMINING THE CONTRIBUTIONS OF BRAND IMAGE AND PERCEIVED QUALITY TO CUSTOMER LOYALTY THROUGH SATISFACTION AND TRUST

Basharat Raza; Aamir Sohail; Shrafat Ali Sair

Basharat Raza Postdoctoral Researcher, Department of Management, Montreal, Quebec, CANADA
Aamir Sohail Lecturer, Department of Commerce, The Thal University Bhakkar, Punjab, Pakistan
Shrafat Ali Sair Assistant Professor, Hailey College of Commerce, University of the Punjab (QA-Campus), Lahore

Keywords: Brand Image, Perceived Quality, Customer Loyalty, Customer Satisfaction, Brand Trust

Abstract

This research aims to evaluate interconnection between brand trust, brand image, customer satisfaction, customer loyalty and perceived quality among 350 reputable brands customers. Thus, study proposes the use of Structural Equation Modeling (SEM) to examine these constructs and their relationship in the context of customer loyalty. The analysis of internal consistency reveals that all constructs are highly reliable with Cronbach’s Alpha values greater than 0.70. Validity analysis, using the Heterotrait-Monotrait Ratio (HTMT), ensures distinctiveness amid constructs. SEM results show significant positive effects: brand trust and brand image both enhance customer satisfaction and loyalty, while the perceived quality positively influences both satisfaction & loyalty. Moreover, customer satisfaction mediates the impact of brand image and perceived quality on customer loyalty. Additionally, the study examines moderating variables, finding that some significantly affect customer loyalty. These findings provide actionable insights for the managers in manufacturing SMEs, emphasizing importance of building brand trust and image, ensuring high perceived quality and fostering the customer satisfaction to cultivate the customer loyalty.