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The Relationships between Brand Trust Dimensions and Loyalty Behavior Types: Analyzing Moderating Effect of Perceived Difference in Brand Competences

Abstract

This study conceptualizes brand trust as a multidimensional variable, that consists of expertise based trust and benevolence based trust, and aims to identify the effects of two dimensions of brand trust on two types of consumers' loyalty behavior; economic (e.g., repurchase) and social (e.g., positive WOM, defense toward critics on the brand) behaviors. Additionally the researcher tried to investigate the moderating effect of consumers' perceived difference in brand competences on the relationships between trust and loyalty behavior. To test the conceptual model, a survey on Korean four automobile brands with a sample of 392 adult customers was conducted. According to the results, both dimensions of trust have significant influences on the economic and social loyalty behaviors And it was found that as a consumer perceives the difference among brands bigger, the influence of expertise based trust on both economic and social loyalty behaviors is significantly increased. On the other hand, as the perceived difference gets smaller the impact of benevolence trust on both types of loyalty behavior becomes stronger significantly. It is expected that marketers, as well as researchers, will be able to elaborate their strategies and studies by understanding underlying mechanism in the relationships between brand trust dimensions and different types of loyalty behavior. Also this study demonstrates that marketers should consider, depending on consumers' perception about competence gap among competing brands, which dimension of brand trust should be emphasized to strengthen customer loyalty.

keywords
brand trust, expertise based trust, benevolence based trust, economic loyalty behavior, social loyalty behavior, perceived difference in brand competences

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