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Unveiling Direct Effects of Service Quality and Price Perception on Brand Trust and Purchase Intention: A Comprehensive PLS-SEM Analysis

Author

Listed:
  • Robert MAKORERE

    (Department of Marketing and Entrepreneurship, School of Business, Mzumbe University, Morogoro, Tanzania)

Abstract

Tanzanian telecom industry has shifted from growth to customer retention, highlighting the importance of understanding service quality and price perception. This study explores how these factors influence customer satisfaction, brand trust, and purchase intention, using the SERVQUAL model, Expectancy Disconfirmation Theory, and the Theory of Planned Behaviour. Data from 601 users across Tanzania, which were analysed using PLS-SEM, revealed that service quality and perceived price significantly impact satisfaction and trust, which in turn drive purchase intentions. Customer satisfaction most strongly influenced brand trust (β = 0.832), and brand trust predicted purchase intention (β = 0.616). The perceived price had a stronger effect on satisfaction (β = 0.350) than on purchase intention (β = 0.153), implying that fairness matters more than does low cost. While service quality greatly impacted satisfaction (β = 0.537), its direct influence on purchase intention was limited (β = 0.102). The study offers valuable insights for telecom providers and policymakers aiming to enhance consumer trust, pricing strategies, and service quality in a competitive, developing market.

Suggested Citation

  • Robert MAKORERE, 2025. "Unveiling Direct Effects of Service Quality and Price Perception on Brand Trust and Purchase Intention: A Comprehensive PLS-SEM Analysis," Oradea Journal of Business and Economics, University of Oradea, Faculty of Economics, vol. 10(2), pages 21-35, September.
    • Handle: RePEc:ora:jrojbe:v:10:y:2025:i:2:p:21-35
    DOI: http://doi.org/10.47535/1991ojbe215
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    References listed on IDEAS

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    1. Johakim Katekele John & Jerum William Kilumile & Robert Makorere & Samuel Hudson Mrisha & Merry Nyagawa & Mohammed Miraji Hussein, 2025. "From business-to-consumer interactions to brand equity: driving social commerce purchase intentions," Cogent Business & Management, Taylor & Francis Journals, vol. 12(1), pages 2494064-249, December.
    2. Jenny C. Aker & Isaac M. Mbiti, 2010. "Mobile Phones and Economic Development in Africa," Journal of Economic Perspectives, American Economic Association, vol. 24(3), pages 207-232, Summer.
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    JEL classification:

    • M1 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration

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