IDEAS home Printed from https://ideas.repec.org/a/eee/joreco/v15y2008i3p179-193.html
   My bibliography  Save this article

The effects of brand credibility on customer loyalty

Author

Listed:
  • Sweeney, Jill
  • Swait, Joffre

Abstract

Customer churn is an ever-growing issue in the relational services sector (e.g., retail banking, telecommunications), where business models ultimately depend upon long-term relationships with customers as the basis for profitability. Businesses in this sector have tended to view satisfaction and service quality as the key tools for increasing customer retention. The present study investigates the important additional role of the brand in managing the churn of current customers of relational services. Based on information economics, we propose specifically that the credibility of the brand underlies the role that the brand can play in this process. This research leads to the enhanced understanding that the brand has a significant role to play in managing long-term customer relationships, and details how the usual tools of customer relationship management, satisfaction and service quality, relate to brand credibility. Results from samples of retail bank and long distance telephone company customers indicate that brand credibility serves in a defensive role: it significantly enhances word-of-mouth and reduces switching behaviors among customers; these relationships are mediated by customer satisfaction and commitment. Implications of the study for theory and practice are discussed.

Suggested Citation

  • Sweeney, Jill & Swait, Joffre, 2008. "The effects of brand credibility on customer loyalty," Journal of Retailing and Consumer Services, Elsevier, vol. 15(3), pages 179-193.
    • Handle: RePEc:eee:joreco:v:15:y:2008:i:3:p:179-193
    DOI: 10.1016/j.jretconser.2007.04.001
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0969698907000355
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jretconser.2007.04.001?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Stigler, George J., 2011. "Economics of Information," Ekonomicheskaya Politika / Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 5, pages 35-49.
    2. Stiglitz, Joseph E, 1987. "The Causes and Consequences of the Dependence of Quality on Price," Journal of Economic Literature, American Economic Association, vol. 25(1), pages 1-48, March.
    3. Blackston, Max, 2000. "Observations: Building Brand Equity by Managing the Brand&s Relationships," Journal of Advertising Research, Cambridge University Press, vol. 40(6), pages 101-105, December.
    4. Fournier, Susan, 1998. "Consumers and Their Brands: Developing Relationship Theory in Consumer Research," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 24(4), pages 343-373, March.
    5. Geyskens, I. & Steenkamp, J.E.B.M. & Scheer, L.K. & Kumar, N., 1996. "The effects of trust and interdependence on relationship commitment : A trans-Atlantic study," Other publications TiSEM ef7c8d6c-963d-4ee7-8576-9, Tilburg University, School of Economics and Management.
    6. Hamparsum Bozdogan, 1987. "Model selection and Akaike's Information Criterion (AIC): The general theory and its analytical extensions," Psychometrika, Springer;The Psychometric Society, vol. 52(3), pages 345-370, September.
    7. Eugene W. Anderson & Mary W. Sullivan, 1993. "The Antecedents and Consequences of Customer Satisfaction for Firms," Marketing Science, INFORMS, vol. 12(2), pages 125-143.
    8. Armstrong, J. Scott & Overton, Terry S., 1977. "Estimating Nonresponse Bias in Mail Surveys," MPRA Paper 81694, University Library of Munich, Germany.
    9. Wells, William D, 1993. "Discovery-Oriented Consumer Research," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 19(4), pages 489-504, March.
    10. Birger Wernerfelt, 1988. "Umbrella Branding as a Signal of New Product Quality: An Example of Signalling by Posting a Bond," RAND Journal of Economics, The RAND Corporation, vol. 19(3), pages 458-466, Autumn.
    11. de Chernatony, Leslie & Dall'Olmo Riley, Francesca, 1999. "Experts' Views About Defining Services Brands and the Principles of Services Branding," Journal of Business Research, Elsevier, vol. 46(2), pages 181-192, October.
    12. Moshe Ben-Akiva & Joffre Swait, 1986. "The Akaike Likelihood Ratio Index," Transportation Science, INFORMS, vol. 20(2), pages 133-136, May.
    13. Westbrook, Robert A & Oliver, Richard L, 1991. "The Dimensionality of Consumption Emotion Patterns and Consumer Satisfaction," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 18(1), pages 84-91, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dwivedi, Abhishek & Merrilees, Bill, 2013. "Retail brand extensions: Unpacking the link between brand extension attitude and change in parent brand equity," Australasian marketing journal, Elsevier, vol. 21(2), pages 75-84.
    2. Frank, Björn & Herbas Torrico, Boris & Enkawa, Takao & Schvaneveldt, Shane J., 2014. "Affect versus Cognition in the Chain from Perceived Quality to Customer Loyalty: The Roles of Product Beliefs and Experience," Journal of Retailing, Elsevier, vol. 90(4), pages 567-586.
    3. Huber, Frank & Vollhardt, Kai & Matthes, Isabel & Vogel, Johannes, 2010. "Brand misconduct: Consequences on consumer-brand relationships," Journal of Business Research, Elsevier, vol. 63(11), pages 1113-1120, November.
    4. Rauyruen, Papassapa & Miller, Kenneth E., 2007. "Relationship quality as a predictor of B2B customer loyalty," Journal of Business Research, Elsevier, vol. 60(1), pages 21-31, January.
    5. Jake An & Diem Khac Xuan Do & Liem Viet Ngo & Tran Ha Minh Quan, 2019. "Turning brand credibility into positive word-of-mouth: integrating the signaling and social identity perspectives," Journal of Brand Management, Palgrave Macmillan, vol. 26(2), pages 157-175, March.
    6. Lombart, Cindy & Louis, Didier, 2012. "Consumer satisfaction and loyalty: Two main consequences of retailer personality," Journal of Retailing and Consumer Services, Elsevier, vol. 19(6), pages 644-652.
    7. Yuan, Chun Lin & Kim, Juran & Kim, Sang Jin, 2016. "Parasocial relationship effects on customer equity in the social media context," Journal of Business Research, Elsevier, vol. 69(9), pages 3795-3803.
    8. Brady, Michael K. & Robertson, Christopher J. & Cronin, J. Joseph, 2001. "Managing behavioral intentions in diverse cultural environments: an investigation of service quality, service value, and satisfaction for American and Ecuadorian fast-food customers," Journal of International Management, Elsevier, vol. 7(2), pages 129-149.
    9. F. Magnoni & Elyette Roux, 2011. "Stretching a luxury brand down: An experimental study of core brand dilution effects," Post-Print halshs-00644899, HAL.
    10. Blut, Markus & Chowdhry, Nivriti & Mittal, Vikas & Brock, Christian, 2015. "E-Service Quality: A Meta-Analytic Review," Journal of Retailing, Elsevier, vol. 91(4), pages 679-700.
    11. Salgado, Stéphane & Hemonnet-Goujot, Aurelie & Henard, David H. & de Barnier, Virginie, 2020. "The dynamics of innovation contest experience: An integrated framework from the customer’s perspective," Journal of Business Research, Elsevier, vol. 117(C), pages 29-43.
    12. Han, Heesup & Meng, Bo & Kim, Wansoo, 2017. "Bike-traveling as a growing phenomenon: Role of attributes, value, satisfaction, desire, and gender in developing loyalty," Tourism Management, Elsevier, vol. 59(C), pages 91-103.
    13. Zur, Andrew & Leckie, Civilai & Webster, Cynthia M., 2012. "Cognitive and affective trust between Australian exporters and their overseas buyers," Australasian marketing journal, Elsevier, vol. 20(1), pages 73-79.
    14. Todorova, Tamara & Dzharova, Veselina, 2010. "Optimal Time and Opportunity Cost of Job Search in Low-income Groups: an Out-of-the-job Search Model," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 1(3), pages 195-205.
    15. Ainsworth, Jeremy & Foster, Jamye, 2017. "Comfort in brick and mortar shopping experiences: Examining antecedents and consequences of comfortable retail experiences," Journal of Retailing and Consumer Services, Elsevier, vol. 35(C), pages 27-35.
    16. P. Van Kenhove & K. De Wulf & D. Van Den Poelt, 2003. "Does Attitudinal Commitment to Stores Always Lead to Behavioral Loyalty? The Moderating Effect of Age," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 03/168, Ghent University, Faculty of Economics and Business Administration.
    17. Aoudji, Augustin K.N. & Adégbidi, Anselme & Ganglo, Jean C. & Agbo, Valentin & Yêvidé, Armand S.I. & De Cannière, Charles & Lebailly, Philippe, 2011. "Satisfaction across urban consumers of smallholder-produced teak (Tectona grandis L.f.) poles in South Benin," Forest Policy and Economics, Elsevier, vol. 13(8), pages 642-651, October.
    18. Grolleau, Gilles & Caswell, Julie A., 2006. "Interaction Between Food Attributes in Markets: The Case of Environmental Labeling," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 31(3), pages 1-14, December.
    19. Lee, Kuo-Wei & Li, Chia-Ying, 2023. "It is not merely a chat: Transforming chatbot affordances into dual identification and loyalty," Journal of Retailing and Consumer Services, Elsevier, vol. 74(C).
    20. John Hulland & Hans Baumgartner & Keith Marion Smith, 2018. "Marketing survey research best practices: evidence and recommendations from a review of JAMS articles," Journal of the Academy of Marketing Science, Springer, vol. 46(1), pages 92-108, January.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:joreco:v:15:y:2008:i:3:p:179-193. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/journal-of-retailing-and-consumer-services .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.