Explore the Buffering Effects of Perceived Hidden Inflation on Survival of Mobile Phone Service Providers in Taiwan

Abstract

Abstract:The purpose of this study is to examine the moderating role of perceived hidden inflation on the relationships between service quality, brand trust and brand loyalty. All data collected from the target population are analyzed through two-step structural equation modeling (SEM) and moderated multiple regression (MMR) to examine the hypotheses. 1,050 questionnaires are randomly distributed at 21 telecommunication service stores in Taiwan. Findings indicated that service quality has no direct impact on behavioral loyalty but it has a significant indirect impact on behavioral loyalty through brand trust or attitudinal loyalty. Moreover, findings identify perceived hidden inflation as the moderating role in the service quality-brand trust-brand loyalty chain. Besides the need for empirical confirmation of the hypotheses given, finally, there are several practical implications for service marketers and future research directions for scholars.

The Mediating Role of Brand Trust and Brand Love between Brand Experience and Loyalty: A Study on Smartphones in China

“…This is because they continue to make purchases from the brand, even as competitors enter the market or offer similar products or services at a lower price. Past studies [2,89,91] have also confirmed that brand trust has a positive impact on behavioral loyalty. Hence, we proposed the following hypothesis: H10: BT is significantly linked to BHL.…”

“…Consumers are more inclined to remain loyal to a brand that makes them feel good, and trust plays a critical role in evoking these positive emotions [ 76 ]. When consumers have faith in a brand, they feel less apprehensive about doing business with it, resulting in a greater likelihood of attitudinal loyalty since they are more comfortable and confident in making purchasing decisions [ 2 ]. Additionally, when consumers trust a brand, they often develop a sense of affiliation and belonging to that brand, resulting in a stronger emotional connection to the brand and increasing attitudinal loyalty.…”

“…Additionally, when consumers trust a brand, they often develop a sense of affiliation and belonging to that brand, resulting in a stronger emotional connection to the brand and increasing attitudinal loyalty. Studies in the past [ 2 , 89 ] have empirically demonstrated the strong relationship between brand trust and attitudinal loyalty. Based on this evidence, the hypothesis was formulated as follows:…”

“…This feeling of reliability encourages consumers to come back to the brand again and again, as they know they can rely on the brand to provide consistent quality and value. Moreover, when consumers trust a brand and exhibit behavioral loyalty, they become more valuable to the brand over time [ 2 ]. This is because they continue to make purchases from the brand, even as competitors enter the market or offer similar products or services at a lower price.…”

“…To achieve this, brands must focus on establishing and nurturing brand attributes like brand trust, brand love, and brand experience. These brand attributes have become increasingly important as customers seek meaningful and personalized connections with the brands they engage with [ 2 ]. Therefore, it is essential for brands to understand and prioritize these aspects to build strong and lasting relationships with their customers.…”