Journal of Business Strategies, Vol.9, No.

1, 2015, pp 63–82

Brand trust, customer satisfaction and Brand

Loyalty-a cross Examination
Zafar Ullah chandio*, Muhammad azeem Qureshi**
and shoaib ahmed***
Brand Loyalty is one of the most significant tools for any
organization to survive in a severe competition. Brand helps
in creating relationship between consumer and producer. In
this cross sectional research we have investigated the effect
of service quality, perceived quality, perceived value, brand
trust and customer satisfaction on brand loyalty. The service
quality, perceived quality and value were determined to be
input variables; brand trust and customer satisfaction were
determined to be intervening variables; and brand loyalty
was determined to be the output variable. Conceptual model
was designed to explain the factors on brand loyalty. Data
were collected from 150 respondents who were users of
certain international brand. Our study results provide a
better understanding about brand loyalty among customers
of a certain brand.
Keywords: Brand loyalty, brand trust, customer satisfaction

introduction
Brand is an important subject which creates positive image in eyes of
customers to make itself different from the competitors(kotler,2004).Today in the
age of globalization internet is now spreading in the world quickly as compared
in the past due to this the competition among the products are more severe to
survive. This makes brand more important and uplift at high level. In the world
of marketing and other businesses brand is growing up as an issue and become
more important at international level. In the intensive competition to make the
customers loyal to brand marketing strategies help to create positive image. An
organization can determine its success by the degree of their brand rather than to
build a new plant or technical innovation. Loyal customers even at toughest times
purchase the product offering at high rate.

In the process of product choice by the customers brand plays an important

__________________________________________________________________________________
*Assistant Professor, Institute of Business & Technology, Karachi
**Lecturer, Institute of Business & Technology, Karachi
***Assistant Professor, Institute of Business & Technology, Karachi

62
Chandio, Z.U., Qureshi, M.A. and Ahmed, S.

role. The mean of this process is to create a link between the producer and
consumer to provide them the functions that are promised by the product to meet
his or her expectations. That’s why customers consider brand in the product
selection process when they intend to purchase. If customers aware more about
the role and importance of brand they would be more loyal to the brand product.
This creates a strong link between brand and loyalty about that brand. Brand
loyalty concept is complicated and not one dimensional (Ha, 2005).The existence
of the loyalty to brand is possible when customers feels that the product has right
characteristics according to the quality and price of the product.

Brands are the asset of organizations. They interlink consumer and the
company that build customers trust and loyalty to the brand. So that this loyalty
brings greater market share when the product is purchase by the customers loyal
to the brand (Assael 1998). Brands are considered as the more important assets
of the company that make customers loyal and have value for the end consumer.
Thus the brand helps customers in purchase decision making. Furthermore brand
creates a relationship with the customers either the relation is positive by
continuing the brand or negative by moving to the other brand.

The committed consumers purchase the brand repeatedly. The preference of a

person is affected by the behavior of consumer that resulted in brand loyalty.
There is a consistency in buying a product from the preferred brand class at any
price. Different marketing steps are taken by the companies to make the customers
loyal. They used different programs to attract the customers. In return they get
the customers loyal to them and talked about the brand among friends positively.
This positive word of mouth is very effective for the company that helps them in
gaining the great market share.

The understanding about the needs and wants of the customers is important
but majority of the companies failed to do it. The power of the customers of
understanding about the products in present day is more as compared in the past.
In this result customers remain unsatisfied. Thus not only credibility but loyalty
of the brand is also affected directly and indirectly by this dissatisfaction of
customers. In the beginning point, customer’s satisfaction is built if the customer
has full confidence or trust on the brand. If brand fails to fulfill promises customer
will move to the competitor brand product.

The research scholars have now complete understanding about brand loyalty
that is of great advantage for the companies from past few years. There are many
studies about focus on advantages of customer loyalty to the brand and their

63
 Brand Trust, Customer Satisfaction and Brand Loyalty

strength to attain great outcomes (Oliver, 1999; Russell-Bennett et al., 2007).From

the practical point of view, in order to enhance the brand experience it’s important
to know how loyalty to the specific brand can be reinforced. In this observation
loyalty of customer shows a wider role and connects the company, its employees
and shareholders with the final consumer of the product. Similarly brand is a main
mean to understand the consumer brand link.

Every of the firm want to attract the customers and they would have the high
brand feeling about the product. For this purpose customer satisfaction is necessary
factor that can move the customers towards it. From this point of view if the
customers will satisfy with their specific brand they would make repeat purchases
and show commitment. Not only satisfaction various other factors affect the brand
loyalty of consumer include trust, quality perceived value, equity. These factors are
helpful in creating the multidimensional construct of brand loyalty. In this research
we are studying the variables including service quality, perceived quality, perceived
value, customer satisfaction, brand trust and their effect of brand loyalty. These
determinants are designed to know the effects on brand loyalty.

The loyal customers of specific brand probably willing to pay any price for the
product (Jacoby and Chestnut 1998; Pessemier1959 ; Reicheld 1996).All this is
due to the communication of the brand, trust of the customer and better service
quality offered by the brand make consumer attractive to use it. Companies achieve
the great share in market if loyal consumers purchase the brand constantly (Assael
1998). Moreover loyal consumers have a perfect image in their sights to use the
product repeatedly overtime (Upshaw 1995).Higher brand performance results and
customer brand association may builds brand trust and loyalty that was a result of
better communication and great service quality. Thus the loyalty to this brand can
be understand through trustworthiness, service quality and perceived quality.

Literature review
Brand loyalty
A situation in which consumer purchase and uses the brands of their trust as
compare to brand that they don’t trust. In this way consumer shows a commitment
to that brand. Brand loyalty can be measured through positive word of mouth,
satisfaction of customer, brand trust, sensitivity of price etc. A degree in which
consumer consistently purchases the brand available in the product category. The
loyalty to the specific brand of consumer will remain unchanged if the brand is
as long available (Rizwan et al., 2013). Today’s customer has more power of
understanding about the brand and they will buy the brand from specific product
category if they feel that the product has right characteristics, quality and price.

64
Chandio, Z.U., Qureshi, M.A. and Ahmed, S.

Moreover they don’t move towards other suppliers to purchase the product. Also
if the other brands are available at low prices having higher quality, consumers
will remain loyal to their specific brand.

If the company wants to achieve the profitability and compete with their rival
products brand loyalty is condition for it (Aaker, 1995, 1997; Reichheld, Markey,
and Hopton, 2000).Companies offer many brands to their customers but
unfortunately not every brand attracts the customers. Only few brands give
company higher loyalty customers. Marketing strategies are the heart of company
to build a customer brand relationship; particularly in intensive competition by
reducing the product disparity (Fournier and Yao, 1997).From the literature point
of view brand loyalty in marketing has now great importance from last few
decades (Howard and Sheth 1969).

Due to the better perceived quality or positive image of brand the loyal
consumers prefer to purchase the specific brand but not for the price (Chaudri,
1999). Through the attributes and good quality habit brand can be identified
(Jacoby and Kyner, 1973).In general the customer level of satisfaction can be
identified either the brand fulfil their expectations or not through the means of
brand loyalty (Bloemer and Kasper, 1995; Ballester and Aleman, 2001). The
performance of the brand is recognized by higher customer’s loyalty.

Brand trust
It is a promise of brand with their customers to fulfill their expectations. Brand
trust is an important item that helps customer loyal to the brand. Without the trust
on brand customer can’t enter in loyalty set. To build a trust it’s important for the
Consumer to take and asses the information from the product. Companies can
build emotional trust if they can prove that the brand is only for the customers
and meet their expectations (e.g. brand is trustworthiness and friendly for the
family use).Consistent brand demonstrate this specific behavior.

The customers trust on specified brand functions and willingness to purchase

the brand from the product class (Moormal et al 1993). The vagueness in the
situation can be diminishes by the trust through which customer can rely on the
specific trusted brand product. Brand loyalty is a result of brand trust or promises
that build the highly valued connections Morgan and Hunt 1994, Chaudhuri and
Holbrook, 2001).Some scholars defined commitment as “an enduring desire to
maintain a valued relationship” (Moorman, Zaltman, and Deshpande 1992).So
promises are the cause of constant on going and retaining a relationship build
between company and consumer.
H1: Brand trust positively correlated with brand loyalty

65
 Brand Trust, Customer Satisfaction and Brand Loyalty

service quality
Service quality can be defined as the observation of customer about service items
that include quality of physical atmosphere, resulted quality, and interfaced quality.
Furthermore these service items can also be estimated on the basis of detailed
dimensions of quality, awareness, consistency and promises. In addition to this, service
quality contains the exchange of relationships between salesperson and the purchasers.
Due to the better services provided customer wants to avail the services at shop. This
resulted in the extensive coordination between salesperson and consumer.

Service quality can be defined as the divergence between customer image

about the service presentation and his/her expectations for services. Service
quality is an essential item in building the brand trust and defined in other words
as the decisions that are resultant from estimation process in which customers
differentiate the service provided to them and the services they perceived
(Parasuraman et al, 1988) Gronroos (1984).

The customer’s decision about the whole performance of the service product
( Zeithaml 1988). If the quality experienced by the customer is according to the
quality they expect about the brand this resulted in a better service and perceived
quality Gronroos (1988). The model of service quality that got fame was presented
by Parasuraman et al. (1985, 1988). There is a major effect of service quality on
the loyalty of customer (Bolton and Drew 1991). Some scholars suggested that
only those elements have major effect on brand loyalty that is not intangible but
gives response (Kayaman and Arasli 2007). The quality perceived by the customer
and their satisfaction level the indirect link among brand loyalty and service
quality can be defined (Chitty et al., 2007).

In service organizations they must have to facilitate the customer with their
consistent and best service qualities that can make them at the top in the
competition of services provided. The point to keep in mind while in competition
is to provide customers with their consistent and best products, loyalty of
customers with brand and mitigating cost (Rusta, 2008).

Practical research also clearly defined the relationship between the service
quality, brand trust and loyalty of customers towards the brand. The behavior of
the customer and intention towards the services and its multidimensional structure
was proposed by the scholar (Zeithaml et at. 1996). Positive word of mouth,
intention of customers towards the brand, sensitivity in price and behaviors of
complaining about it are the main four measurements that completely described
the multidimensional framework.
H2: Service quality is positively correlated with brand trust

66
Chandio, Z.U., Qureshi, M.A. and Ahmed, S.

customer satisfaction
It can be defined as the degree to which customers are happy with the use of
products that are provided to them by the companies. To achieve the level of
satisfaction companies must have to keep in mind the needs and wants of customers
and supply them outstanding products and services. Any business can move on to the
upper level of advantage by achieving customer satisfaction in intensive competitive
market. It is a feeling of any consumer post purchases and uses of the product,
regardless that product and services meet the expectations or not.

Originally customers make their expectation and perception about the brand
product by means of positive word of mouth from the friends and family, the
selling and promotion activities by using the market strategies. If the customers
found unsatisfied from the productand services it is possibility that they can tell
others about such practice.

It is commonly used in studies. Basically satisfaction is a speedy or quick

experience of the customers after using the product through which the overall
satisfaction can be assessed (Lam, et al, 2004; Tian, 1998; Yang, 2004; Li and
Vogelsong, 2003). Various studies tells that the loyalty is affected by the
satisfaction through the satisfaction level we can predict the purchase intentions
and behaviour of consumer towards the brand product (Eggert, A. & Ulaga, 2002).
In making a decision to purchase the product past experiences of using that
product affects the intention of consumer decision process.

From the past few decades many marketers and research scholars define
customer satisfaction. In the words of (Oliver 1997) satisfaction is defined as “the
summary psychological state resulting when the emotion surrounding
disconfirmed expectation is coupled with prior feelings about the customer
experience “.

Practical studies illustrate that satisfaction is the predecessor of brand loyalty,

intention to re-buy the product and behavior of brand towards its customers
(Oliver, 1980; Pritchard et al., 1999; Russell- Bennett et al., 2007). Brand loyalty
can increased by the satisfaction of customer and repeat the purchase of the same
product services (LaBarbera and Mazursky, 1983). In the research repurchase and
consumption of the product leads to the two phases of loyalty that are as, loyalty
to purchase and loyalty towards attitude or behavior through which it can be
determined either consumers will purchase those services or move to other that
are more preferable (Bennett, Hartel, and McColl- Kennedy, 2005; Chaudhuri and
Holbrook, 2001).Thus, the following hypothesis is arrived:
H 3: Customer Satisfaction will be positively correlated with brand loyalty

67
 Brand Trust, Customer Satisfaction and Brand Loyalty

Perceived brand quality

It is the perception of the customer created by the companies through the
advertising publicities, and other social media intend to purchase the product. In
general it is the feeling of customer about product quality and its features provided
to them such a performance and reliability of the product. The promises made by
the brand product to meet the expectations of the customers (Zenithal, 1988).
Basically there are two phases of the quality objective and perceived quality.
According to, Zeithaml (1988) objective quality has no validity and valuations of
the quality. Furthermore from this point of view perceived quality is significant
among them which are also a second phase or part of the quality. The customer
valuations for the product quality and services either product meets the
expectations (Olsen, 2002). It is a relative concept that can change the people’s
experiences and expectations of that product brand. Some researchers and
practitioners had considered the relation of perceived quality and satisfaction by
Olsen (2002), Darsono and Junaedi (2006). There are many models presented by
the, Cronin and Taylor (1992) to examine the link of perceived quality and
satisfaction. Through Some practical researches it is also found that there is a
supportive link between perceived quality and satisfaction Lee and Back (2008).
In some other quality studies this link has been described (Brady and Robertson,
2001; Fornell, 1992; Tse and Wilton, 1988) According to Gotlieb et al.’s (1994)
there is a consistent relation between perceived quality and customer satisfaction.
If the link of perceived quality and satisfaction become consistent then it is best
for the brand loyalty. Thus perceived quality has positive effect on brand
satisfaction. Perceived quality has also an effect on the brand trust which suggested
by many researchers Corritore et al., (2003). Through this result it is generally
came to knew that there is a positive effect of perceived quality on brand trust.
The following hypothesis are developed from the literature

H 4 : perceived quality is positively correlated with customer satisfaction H 5 :

perceived quality is positively correlated with brand trust

Perceived brand value

Perceived brand value is defined as the value of product according to its price
in the mind of customers. Customer doesn’t know the cost incurred on the
products. Customer just internally after using the product can analyze through
feelings that either the price of the product is more than it’s worth or not. This is
the point that makes customer willing to pay for the product or not. So in such
situation manufacturers or producers apply marketing strategies to create high
value of the product and services in the eyes of customer.

68
Chandio, Z.U., Qureshi, M.A. and Ahmed, S.

It also tells the post purchase intentions and feelings of the customers about
the product worth. Furthermore customers then create an image of product in mind
positive or may be negative. (Hellier et al., 2003) suggested that it’s an
observation of customers that the advantages are provided to them are according
to price or they satisfy from that product or not. When customer purchases a
product he/she wants to get more value than its cost this is the level of satisfaction
and expectations of customers for product.

There is association between perceived value and satisfaction suggested by Cronin

et al. (2000). Moreover the outcomes told that a significant relationship is between
perceived value and satisfaction. The value of product in eyes of customer would be
high if customer gets more satisfaction from the specific brand product.

Some scholars studied that there is significant relationship between perceived

value and brand trust Chaudhuri and Holbrook (2001). Product value in eyes of
customer would increase if the trust of customer on brand is high. Thus the
hypotheses we get from a literature are as follows:

H6: Perceived value is positively correlated with customer satisfaction.

H7: Perceived value is positively correlated with brand trust

research Methodology
sample/Data
A sample of 150 respondents was conveniently selected. The data was collected
from Karachi City and respondents were asked to participate in this research to collect
the information about proposed phenomenon through physically distributed
questionnaires. The current study utilizes a technique that is convenience sampling. It
is a sampling technique in which data or relevant information is collected from the
sample/units of the study that are conveniently available (Zikmund, 1997). There are
two major purposes of the survey instrument: first to investigate the relationship of
different variables in foundation of brand loyalty and secondary, to gather the
information about the respondents of different characteristics that can be used to
understand the variations in different classes.

Measures
The survey of the study contains two sections. Section 1 contains individual
specific and demographic variables. This section tells the respondents gender,
age, income, education and status while Section 2 includes the variables that are
under study. These variables include perceived value, brand loyalty, brand trust,
customer satisfaction, perceived quality and service quality.

69
 Brand Trust, Customer Satisfaction and Brand Loyalty

The scales under this study were taken from previous literature and published
studies. Perceived value has been measured through 4 items (Mathwick et al. 2001;
Petrick 2002; Sweeney and Soutar 2001); Brand loyalty was measured through 6
items proposed by Algesheimer, Uptal and Herrmann, 2005; Fullerton, 2005; Brand
trust measured through 5 items developed by Matzler et al, (2008), Chanduhuri
and Holbrook, (2001); Perceived quality measured through 4 items proposed by
Yoo et al (2000) ; Customer satisfaction has been measured through scale
developed by Ragunathan and Irwin (2001) and Service quality measured through
5 items and these were adopted from Brady and Cronin, 2001; Parasuraman et al,
1988; Terblanche and Boshoff, 2001).

Procedure
The questionnaire was distributed among 170 respondents for collection of data
in Karachi. From the above mentioned criteria the respondents were selected for
this purpose. From the starting point or before giving the questionnaire the purpose
of the research and study was described to them so that they can easily fill up the
questionnaire with appropriate response answers. After the collection of data 150
questionnaires were selected and rest of the questionnaires were not including in
the research due to invalid and incomplete questionnaires. The setting of the
variables were according to the five point Likert scale (1= strongly agree, 2= agree;
3= neutral, 4= disagree; 5=strongly disagree). Data was coded in SPSS program.
To view the results regression analysis was used.

Data analysis
reliability analysis
In this study of brand loyalty questionnaire we use 26 items in measurement of 6
variables and we came to know that the items in this study are more reliable than standard
and suggested value 0.50 by Nunnally (1970) and 0.60 by Moss et al. (1998).So these 26
items shows that all these are reliable and valid to measure the opinions of consumers
towards brand loyalty. Reliability of items are shown in (Table 1)

Table 1: Reliability of Measurements Instrument

Scales Items Cronbach Alpha
Perceived Value 4 0.525
Brand Loyalty 6 0.721
Brand Trust 5 0.633
Customer Satisfaction 2 0.595
Perceived Quality 4 0.629
Service Quality 5 0.617

70
Chandio, Z.U., Qureshi, M.A. and Ahmed, S.

The respondents personal and demographic collected information such as gender, age,
income, education and status are given in the following constructed table (Table 2)
Table 2: Description of the Respondents
Category Frequency Percentage
Variable
Male 135 90
Gender
Female 15 10
15-20 years 41 27.3
Age 20-25 years 107 71.3
25-30 years 2 1.3
Below 15000 103 68.7
15000-25000 34 22.7
Income 25000-35000 10 6.7
35000-45000 2 1.3
Above 50000 1 0.7
Matriculation 3 2
Inter 8 5.3
Education Bachelor 114 76
Master 16 10.7
Ms/MPhil 9 6
Student 149 99.3
Status
Employed 1 0.7
service quality, perceived quality, perceived value and brand trust
In order to understand the model of brand loyalty, regression results show that
there is significant positive relationship between service quality and brand trust
with (P=.304) and (p<0.01). This means that service quality helps more than 30%
to create brand trust among customers. Our study validates the hypothesis H2.

The regression analysis of the study shows that there is a positive significant
relationship between perceived quality and brand trust with (P=.362) and
(p<0.01). Through this result we came to know that perceived quality contribute
more than 36% to create brand trust. From this result we can say that our study
supported the hypothesis H5.

Furthermore the relationship between perceived value and brand trust is significant
and positive with (P=.146) and (p<0.05). According to this regression analysis result
we came to know that perceived value contribute more than14% in creating brand
trust among customers. So this result gives validation in favor of hypothesis H7.

71
 Brand Trust, Customer Satisfaction and Brand Loyalty

Perceived quality, perceived value and customer satisfaction

Regression analysis of our research shows that there is a positive and significant
relationship between perceived quality and customer satisfaction with (P=.389) and
(p<0.01). This outcome tells that perceived quality contribute more than 38% in
customer satisfaction. Hypothesis H4 authenticates through this regression outcome.
So a relationship between perceived quality and customer satisfaction is found.

Based on the regression results we examine that there is insignificant

relationship between perceived value and customer satisfaction with (P=.073) and
(p>0.05). Younger respondents were focused mainly in this research and they were
observed to the high perceived value with relative product if mainly sample
consist of adults then results could be different about the relation of perceived
value and customer satisfaction. So, we conclude that there is no significant
relationship between perceived value and customer satisfaction. From this
outcome hypothesis H6 is rejected.

Brand trust, customer satisfaction and brand loyalty

According to the research study the variables investigated and have a
significant positive relationship between brand trust and brand loyalty. Moreover
brand trust has a positive effect on brand loyalty with (P=.510) and (p<0.01). This
represents that brand trust contribute 51% to brand loyalty. So, this regression
analysis shows that brand trust has positive impact on brand loyalty and which
authenticate the hypothesis H1.

Regression outcome tells that there is positive significant relationship between

customer satisfaction and brand loyalty with (P=.132) and (p<0.05). This means
that customer satisfaction helps more than 13% in building brand loyalty. On the
basis of this result we can say that there is a relationship between customer
satisfaction and brand loyalty which is significant and positive from the regression
analysis. This research verify hypothesis H3.
table 3: regression analysis results
Model Significance
Hypothesis S.E ß C.R Results
variables P
H1 BL - BT .087 .510 6.495 0.000 Supported
H2 BT- SQ .080 .304 3.978 0.000 Supported
H3 BL - CS .076 .132 1.682 0.015 Supported
H4 CS - BL .086 .389 4.697 0.000 Supported
H5 BT - PQ .073 .362 4.771 0.000 Supported
H6 CS - PV .099 .073 .932 0.353 Not Supported
H7 BT - PV .073 .146 2.186 .030 Supported

72
Chandio, Z.U., Qureshi, M.A. and Ahmed, S.

Discussion
The purpose of this study is to examine the factors affecting brand loyalty.
According to the results of study we came to know the loyalty for brand among
customers in Karachi for Hewlett Packard products. The multidimensional
construct of brand loyalty basically contains five factors; perceived quality, value,
service quality, band trust and customer satisfaction.

Previous researches found the significant effect of brand trust on loyalty of

customers. From the study, outcome tells that brand trust is the most important
factor on brand loyalty having the regression weight 0.510 (p<0.01). A highly
significant positive relationship is found between brand trust and brand loyalty.
This result illustrates that promises of the product with the customers are fulfilled
in return a trust on brand creates which is beneficial for the company in making
loyal customers. Brand loyalty is a result of brand trust or promises that build the
highly valued connections with consumers Morgan and Hunt 1994, Chaudhuri
and Holbrook, 2001).Customer satisfaction is found to be another very important
aspect that also has significant effect on brand loyalty with regression weight to
be 0.132 (p, 0.015). To make customers loyal Companies keep the needs and
wants of the customers in mind to satisfy and facilitate them by their best products
and services. The study affirmatively proved by this consequence that Brand
loyalty can increased by the satisfaction of customer and repeat the purchase of
the same product services (LaBarbera and Mazursky, 1983). From the
investigation of study Purchase intentions and decision making of the customers
are affected by their satisfaction level.

Service quality, perceived quality and value have a significant positive effect
on intervening variables. These inputs can bring changes in customers positively
to make them loyal or negatively by losing them. From the study of (Olsen, 2002)
the customer valuations for the product quality and services either product meets
the expectations. In predicting brand loyalty the link of customer satisfaction and
perceived quality is found significant from the regression result of analysis to be
(P=.389) and (p<0.01). From the results we can say that perceived quality has a
positive effect in loyalty of customers. Quality wise perception created in minds
that help them in creating satisfaction level to increase which then lead the
consumers to brand loyalty.

Prior studies examine the relationship between brand trust and perceived
quality. This result was also found to be consistent by Corritore et al., (2003).
Regression analysis with (P=.362) and (p<0.01) as perceive quality is the
antecedent of brand loyalty it supports our study that it effects the customers

73
 Brand Trust, Customer Satisfaction and Brand Loyalty

loyalty and trust. Our research tells and supports in form of positive significant
relationship with brand trust that leads customer to loyalty of that brand. From
the past proved studies researchers and practitioners found that there is a major
effect of service quality on the loyalty of customer (Bolton and Drew 1991).
Thefinding of this study also affirms by Parasuraman et al (1988) that service
quality has positive effect on brand trust. Our study mentions a strong role of
service quality in creating a profile of loyal customers with the regression weight
being (P=.304) and (p<0.01). Quality of the service give benefits not only to
customers but more to the company in make themselves a market king so better
service quality provides company with great market share. Our study gives a favor
in this relationship of service quality and brand trust.

Perceived value is found to be another important factor that affects the brand
trust in building brand loyalty. Basically it is the Customer evaluation of product
according to the price. Some scholars studied that there is positive significant
relationship between perceived value and brand trust Chaudhuri and Holbrook
(2001). Our result is found to be consistent with it and gives the regression weight
of (P=.146) and (p<0.05). Our study conclusions support that perceived value
helps a lot in the foundation of brand trust that take customer towards loyalty.
Earlier researches affirms perceived value to be significant with customer
satisfaction but our study investigates and discover the insignificant relationship
between perceived value and customer satisfaction by regression analysis having
weight (P=.073) and (p>0.05). Younger respondents were focused mainly in this
research and they were observed to the high perceived value with relative product
if mainly sample consist of adults then results could be different for this relation.

This research indicates some advices for the companies to follow for the
foundation of brand loyalty. Companies must have to focus on the promotion
means like media and advertising etc. but have to represent the actual picture of
the product and stop in avoiding of the statements on that they can’t justify. Any
company in the world If want to be successful, they should have to give numerous
and affective details to their customer so that they buy their services and products.
By this manner companies can get complete loyalty. Lastly, this paper
recommended the ways of developing brand loyalty for the companies.

74
Chandio, Z.U., Qureshi, M.A. and Ahmed, S.

references
Agustin, C. and Jagdip, S. (2005). Curvilinear Effects of Consumer Loyalty
Determinants in Relational Exchanges. Journal of Marketing Research, XIII.

Amine, A. (1998). Consumers’ True Brand Loyalty: The Central Role of

Commitment Journal of Strategic Marketing. Vol.6. pp.305-319.

Anderson, R. E. & Srinivasan, S. S. (2003). E-satisfaction and e-loyalty: A

contingency framework. Psychology & Marketing. Vol.20; No.2.
pp.123-138.

Ballester-Delgado Elena and Aleman-Munuera Jose (2001). Brand Trust In the

Context of Consumer Loyalty. European Journal of Marketing.
Vol.35;No.11/2. pp.1238-1258.

Bennett, R., Hartel, C. and McColl-Kennedy Jr. (2005). Experience of a

moderator of involvement and satisfaction on brand loyalty in a
business-to-business setting 02-314R. Industrial Marketing
Management. 34. pp.97- 107.

Bennett, R., Rundle-Thiele. S. (2005). The brand loyalty life cycle: Implications
for Marketers. Journal of Brand Management, vol.12;no.4.

Bitner, Mary Jo. (1990). Evaluating Service Encounters; The Effects of Physical
Surroundings and Employee Responses. Journal of Marketing. Vo.54.
April 1990. pp.69-82.

Bloemer, J. M. M. and Kasper, H. D. P. (1995). The Complex Relationship

between Consumer Satisfaction and Brand Loyalty. Journal of
Economic Psychology. Vol.16. pp.311-329.
Ibid.

Bloemer, J.M. and Ruyter, K. (1998). On the relationship between store image,
store satisfaction and store loyalty. European Journal of Marketing, Vol.
32 Nos 5/6, pp. 499-513.

Brown, G. (1952). Brand Loyalty: Fact or Fiction? Advertising Age. Vol.23.

pp.53-55.

Caceres R. C. and Paparoidamis, N. G. (2007). Service Quality, Relationship

Satisfaction, Trust, Commitment and Business-T-Business Loyalty.
European Journal of Marketing. Vol.41;No. 7/8. 2007. pp.836-867.

75
 Brand Trust, Customer Satisfaction and Brand Loyalty

Ibid.

Caruana, A. (2002). Service loyalty: the effects of service quality and the
mediating role of customer satisfaction. Eur. J. Mar. 36(7/8). pp.811-
828.

Cemal, Z, Azize S, Hakan K. and Mehtap, O. (2011). The Effects of Brand

Communication and Service Quality in Building Brand Loyalty Through
Brand Trust; The Empirical Research On Global Brands. Procedia
Social and Behavioral Sciences. Vol.24. pp.1218-1231.

Chang, S. C. (2005). The Dimensions and Measurement Items of Perceived Value

on Tourism Services. Service Industry Management Review. Vol.1.
No.1. pp.105-28.

Chaudhuri A, Holbrook MB (2001). The chain of effects from brand trust and
brand affect to brand performance: the role of brand loyalty. J. Mar.,
65(2): 81-93.

Ibid.

Ibid.

Ibid.

Ibid.

Cronin, J.J., Brady, M. K. & Hult, G. T. M. (2000). Assessing the Effects of

Quality, Value and Customer Satisfaction on Consumer Behavioural
Intentions in Service Environment. Journal of Retailing. 76(2). p.193.

Darsono, L.I, & Junaedi, C.M. (2006). An examination of perceived quality,

satisfaction and loyalty relationship. International Journal of Business.
8 (3). pp.323-42.

Day, G. S. (1969). A two-dimensional concept of brand loyalty. Journal of

Marketing Research. Vol.9. pp. 29-36.

Dick, Alan S. and Basu, K. (1994). Customer Loyalty: Toward an Integrated

Conceptual Framework. Journal of the Academy of Marketing Science.
22 (Spring). pp.99-113.

Fournier Susan & Mick Glen David. (1999). Rediscovering Satisfaction. Journal

76
Chandio, Z.U., Qureshi, M.A. and Ahmed, S.

of Marketing. Vol.63. (October 1999). pp.5-23.

Cemal Zehir et al. / Procedia Social and Behavioral Sciences 24 (2011). pp.1218-
1231 1229.

Garbarino & Johnson S. Mark. 1999. The Different Roles of Satisfaction, Trust,
and Commitment in Customer Relationships. Journal of Marketing.
Vol.63. (April 1999). pp.70-87.

Getty, J. M., & Thompson, K. N. (1994). The relationship between quality,

satisfaction, and recommending behavior in lodging decision. Journal
of Hospitality and Leisure Marketing. 2(3). 3-22.

Giese, J.L. and Cote, J.A. (2000). Defining customer satisfaction. Academy of
Marketing Science Review. Vol.20;No. 1, pp. 1-27.

Gommans, M., Krishnan, K.S. and Scheffold, K.B. (2001). From brand loyalty
to e-loyalty: a conceptual framework. Journal of Economic and Social
Research. Vol.3;No.1. pp. 43-58.

Gonzalez MEA, Comesana LR, Brea JAF. (2007). Assessing Tourist Behavioural
Intentions through perceived Service Quality and Customer
Satisfaction. J. Bus. Res., 60. pp.153-160.

Gotlieb JB, Grewal D, Brown SW (1994). Consumer satisfaction and perceived

quality: complementary or divergent constructs? Journal Applied
Psychology. 79(6). pp.875-885.

Grace, Debra and O’Cass, Aron. (2005). Examining the effects of service brand
communications on brand evaluation. The Journal of Product and Brand
Management. Santa Barbara. 2005. Vol. 14, Iss. 2/3. p.106.

Gronroos, C., (1988). Service quality: The six criteria of good perceived service
quality. Review of Business. 9(3). pp.10-13.

Gustafsson Anders, Johnson Michael D.,RoosInger. (2005). The Effects Of

Customer Satisfaction, Relationship Commitment Dimensions, And
Triggers On Customer Retention Journal of Marketing 69. pp.210-218.

Ha Youl-Hong, Perks Helen. (2005). Effects of Consumer Perceptions of Brand

Experience On The Web: Brand Familiarity, Satisfaction and Brand
Trust. Journal of Consumer Behaviour. Vol. 4;6. pp.438-42.

77
 Brand Trust, Customer Satisfaction and Brand Loyalty

Ha H, Janda S, Park S (2009). Role of satisfaction in an integrative model of

brand loyalty: evidence from China and South Korea. International
Marketing Review. 26(2). pp.198-220.

Hennig-Thurau Thorsten and Klee Alexander. (1997). The Impact of Customer

Satisfaction and Relationship Quality On Customer Retention: A
Critical Reassessment and Model Development. Psychology &
Marketing. Vol.14(8). December 1997. pp.737-764.

Jeff H. and Story J. (2005). Trust-Based Commitment: Multidimensional

Consumer-Brand Relationships. Journal of Consumer Marketing. 22;6.
pp.313-322.

Hsteh, Yi-Ching and Hiang Shu-Ting. (2004). A Study of The Impacts of Service
Quality On Relationship Quality In Search Experience Credence
Services. Total Quality Management. Vol.15;No.1. pp.43-48.

Ibid. 43-48.

Jacoby, Jacob and D.B. Kyner. (1973). Brand Loyalty Versus Repeat Purchasing.
Journal of Marketing Research. l0 February. pp.1-9.

Jacoby, Jacob, Chestnut, Robet W. and Fisher, William, A. (1978). A Behavioral

Process Approach to Information Acquisition in Nondurable
Purchasing. Journal of Marketing Research. Vol.XV. s.532-544.

Jacoby, J. and Chestnut, R.W. (1978), Brand Loyalty: Measurement and

Management, Wiley, New York, NY.

Jacoby, J. and Kyner, D.B. (1973). Brand loyalty versus repeat purchasing.
Journal of Marketing Research. Vol.10. pp.1-9.

Jacoby, W and. Chestnut. R. (1978). Brand Loyalty: Measurement and

Management, John Wiley and Sons, New York.

Knox Simon, Walker David. (2001). Measuring and Managing Brand Loyalty.
Journal of Strategic Marketing 9. pp.111- 128.

Moorman, Christine, Deshpande, Rohit and Zaltman, Gerald, (1993). Factors

Affecting Trust In Market Research Relationships. Journal of
Marketing. Vol.57. S.81-101.

Moorman, C., Deshapande R., & G. Zaltman (1992). Factors affecting trust in

78
Chandio, Z.U., Qureshi, M.A. and Ahmed, S.

market research relationships. Journal of Marketing. 57;1. pp.81-101.

Moorthy, S. and Zhao, H. (2000). Advertising spending and perceived quality.

Marketing Letters. Vol. 11;No. 3, pp. 221-33.

Morgan M. Robert & Hunt D. Shelby. (1994). The Commitment-Trust Theory of

Relationships Marketing. Journal of Marketing. Vol.58 (July 1994),
pp.20-38.
Oliver, R. L. (1997). Satisfaction: A Behavioral Perspective on the Consumer.
McGraw-Hill, New York, NY.

Olsen, S. O. (2002).Comparative evaluation and the relationship between quality,

satisfaction, and repurchase loyalty. J. Acad. Mar. Sci.30(3). pp.240-
249.

Ibid. pp. 240-9.

O’Mally, L. (1998). Can Loyalty Schemes Really Build Loyalty? Marketing

Intelligence and Planning. Vol.16; No.1, p.49.

Parasuraman A., Zeithaml A. Valarie & Berry L. Leonard. (1985). A Conceptual

Model of Service Quality and Its Implications for Future Research.
Journal of Marketing. Vol.49 (Fall 1985). pp.41-50.

Parasuraman, A. and Grewal, D. (2000). The impact of technology on the quality-

value-loyalty chain: a research Agenda. Journal of the Academy of
Marketing Science. Vol.28 No.1. pp.168-74.

Parasuraman, A. and Grewal, D. (2000). The impact of technology on the quality-

value-loyalty chain: a research Agenda. Journal of the Academy of
Marketing Science. Vol.28 No.1. pp.168-74.

Parasuraman, A., Zeithaml, Valarie A l. and Berry Leonard L. (1988). Servqual:

A Multiple-Item Scale For Measuring Consumer Perceptions of Service
Quality. Journal of Retailing. Vol.64. pp.12-40.

Patterson, P.G. & Spreng, R.A. (1997). Modeling the relationship between
perceived value, satisfaction and repurchase intentions in a business-
business, services. Industry Management, Vol.8, No.5.

Petrick, J. F. (2002). Development of a Multi-Dimensional Scale for Measuring

the Perceived Value of a Service. Journal of Leisure Research, Vol.34,
No.2, pp.119-34.

79
 Brand Trust, Customer Satisfaction and Brand Loyalty

Ibid. (2004) First Timers’ and Repeaters’ Perceived Value. Journal of Travel
Research. Vol.43, No.1. pp.29-38.

Ribbink, Diana, C. R. Allard Van Riel, L. A. and Strewkens, S. (2004). Comfort

Your Online Customer; Quality, Trust and Loyalty On The Internet.
Managing Service Quality. Vol 14. pp.446-456.

Rizwan, M., Akbar, I., Muqtadir, A., Shafique, U., Zia, H., Naseer, W. and Amin,
S. A. (2013). Impact of Brand Switching, Brand Credibility, Customer
Satisfaction and Service Quality on Brand Loyalty. IOSR Journal of
Business and Management. Vol. 1 (special issue). pp.12-20.

Rizwan, M., Usman, A., Hussain, T., Shafiq, A., Rauf, S. & Ayaz, Q. (2013). The
Impact of the Perceived Quality, Customer Satisfaction, Brand Trust
and Contextual Factors on Brand Loyalty. International Journal of
Research in Commerce and Management. 4(3). pp.83-89.

Saleh, F. & Ryan, C. (1991). Analyzing service quality in the hospitality industry using
the SERVQUAL model. The Service Industries Journal. 11(3). pp.324-343.

Fred, S. (1993). An Examination of the Effect of Product Performance on Brand

Reputation Satisfaction and Loyalty. European Journal of Marketing.
Vol.27 No.9. pp.19-35.

Sheth, Jagdish N. (1968). A Factor Analytical Model of Brand Loyalty. Journal

of Marketing Research (JMR). Nov ‘68, Vol. 5; Issue 4. pp395-404.

Sheth, J. N. and Park, C. W. (1974). A Theory of Multidimensional Brand Loyalty.

Advances in Consumer Research. 1974. Vol. 1 Issue 1. pp449-459.

Suhartanto, D. (2011). An Examination of Brand Loyalty in the Indonesian Hotel

Industry. Lincoln University Digital Thesis, Christchurch New Zealand.

Syzmanski, D. M. & Henard, D. H. (2001). Customer Satisfaction: A Meta-

Analysis of the Empirical Evidence. Journal of the Academy of
Marketing Science. 29 (1). pp.16-35.

Tellis, G.J. (1988). Advertising exposure, loyalty, and brand purchase: a two-stage
model of choice. Journal of Marketing Research. Vol. 25; No.2. pp.134-44.

TePeci, M. (1999). Increasing brand loyalty in the hospitality industry.

International Journal of Contemporary Hospitality Management.
Vol.11, No.5, pp.223-229.

80
Chandio, Z.U., Qureshi, M.A. and Ahmed, S.

Terblanche, N.S. and Boshoff, C., (2001), Measuring Customer Satisfaction With
The Controllable Elements of The In- Store Shopping Experience. South
African Business Management. 32. pp.8-18.

Wheatley, J.J. and Chiu, J.S. (1977). The effects of price, store image, and product
and respondent characteristics on perceptions of quality. Journal of
Marketing Research, Vol. 14, May, pp.181-6.

Wilkins, H., Merrilees, B., & Herington, C. (2007). Towards an understanding of total
service quality in hotels. Hospitality Management, 26(4). pp.840-853.

Zhilin, Y. and Robin, P.T. (2004). Customer Perceived Value, Satisfaction, and
Loyalty: The Role of Switching Costs, Psychology & Marketing Vol.21
(10) pp.799-822 (October 2004).

Youjae, Y. and La, S. (2004). What Influences the Relationship Between Customer
Satisfaction and Repurchase Intention? Investigating the Effects of
Adjusted Expectations and Customer Loyalty, Psychology & Marketing
Vol. 21(5). (May 2004). pp.351- 373.

Zeithaml, V, Berry, L.L. and Parasuraman, A. (1996). The behavioral consequences

of service quality. Journal of Marketing, Vol. 60, April, pp. 31-46.

Ibid. Vol. 60, No.4, pp.31-46.

Zeithaml, V.A. (1988) “Consumer perceptions of price, quality, and value: A

means-end model and synthesis of evidence”, Journal of Marketing,
Vol.52, No.3, pp.2-22.

Zeithaml, V.A. (1988). Perceptions of price, quality, and value: A Meansend Model
and Synthesis of Evidence. Journal of Marketing, 52 (July), 2-22.

Zeithaml, VA. (1988). Consumer perceptions of price, quality, and value: a

means-end model and synthesis of evidence. Journal of Marketing, 52,
2-22, July.

Zeithaml, Valarie A.; Berry, L. and Parasuraman A., (1996). The Behavioral
Consequences of Service Quality, Journal of Marketing, Vol.60, p.31-46.

81
Reproduced with permission of the copyright owner. Further reproduction prohibited without
permission.