Strategic Effects of Product Innovation, Service Quality, and Relationship Quality on Brand Equity

Abstract

This paper examines the effects of product innovation and service quality on brand equity mediated by relationship quality. To date, the patterns in past research show that there is less attention been paid to examine the importance of product innovation and service quality in affecting brand equity. Thus, in order to explore our knowledge in this area, this study was conducted among car users in Northern region of Malaysia. The data were analyzed using SPSS and Structural Equation Modeling (SEM). The findings indicated that product innovation and service quality have significant positive effects on relationship quality and brand equity. Moreover, the findings revealed that relationship quality mediates the relationship between product innovation and brand equity. It also shows that relationship quality mediates the relationship between service quality and brand equity. Based on these results, several implications and future research suggestions are discussed in this paper in order to explore our knowledge towards the importance of product innovation and service quality in affecting relationship quality and brand equity.

Linking Innovation, Social Media Marketing, And Corporate Social Responsibility To Firm Performance

“…Furthermore, Atalay et al (2013) specified that Innovation has widely been accepted as one of the key significant sources of sustainable competitive advantage in highly dynamic environment as it enables forms to improve their products and processes, makes continuous developments that help them to survive. Hanaysha and Hilman (2015) also confirmed that product innovation had a positive effect on brand equity in automotive industry. Therefore, the findings suggest that automotive companies should adopt innovation practices in an attempt to improve organizational performance and obtain competitive advantage.…”

Customer satisfaction and brand loyalty to electronic home appliances in Bangladesh: the contingent role of brand trust

“…Hunt and Morgan (1996) further added that brand trust and commitment as intangible assets are imitable, and are difficult to be transacted and replicated. Hanaysha and Abdullah (2015) cited Hunt and Morgan (1996) belief that brand trust is a unique asset that is earned with collective effort and hardship to attain sustainable competitive advantage (Hanaysha and Abdullah 2015). Trust has received much attention from scholars in several disciplines such as psychology (Rempel et al 2001), sociology (e.g., Lewis and Weigert 1985), and economics (e.g., Gambetta 1988); and in more applied areas like management (e.g., Barney and Hansen 1994) and marketing (e.g., Dwyer et al 1987;Morgan and Hunt 1994).…”

“…Trust is defined as "the belief of the parties (consumer, organisation, product) in a transaction and the risks associated with assuming and acting on such beliefs" (Lau and Lee 1999). Hanaysha and Abdullah (2015) emphasised the high expectations and possibility that customers expect a brand to generate favourable outcomes. Trust is used as a moderator in various disciplines such as human resource management (Innocenti et al 2011;Jiang and Probst 2019) and social science (Moon et al 2017), among others.…”

User-Generated Contents in Facebook, Functional and Hedonic Brand Image and Purchase Intention

“…Building an attractive brand equity and brand image is absolutely necessary as a strategy for maintaining consumers' satisfaction, acceptance and above all, purchase intentions in a highly competitive market [5]. In the study conducted by [10], purchase intention is explained and measured by consumers' behavioral intentions and willing-to-buy which are consequences of consumers' overall evaluation of a brands and information derived on social media platforms.…”

“…This is possible because social media offers consumers the opportunity to publish and share self-generated contents between multitude of friends and followers. The possibility of generating and sharing contents about brands, affirms the active and influential role of consumers in managing brands on social media [5]. [6], asserted that before any content can be considered as UGC, it must bear one or all the following three features.…”