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An Investigation on The Mediating Effect of Brand Trust on the Relationship

between Elements of Brand Management and Brand Loyalty: A Literature Review

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DOI: 10.5829/idosi.mejsr.2018.27.34

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Middle-East Journal of Scientific Research 26 (1): 27-34, 2018
ISSN 1990-9233
© IDOSI Publications, 2018
DOI: 10.5829/idosi.mejsr.2018.27.34

An Investigation on The Mediating Effect of Brand Trust on

the Relationship between Elements of Brand Management and
Brand Loyalty: A Literature Review

Syahida Abd Aziz, Muhammad Shahar Jusoh and Mohammad Harith Amlus

School of Business Innovation and Technopreneurship,

Universiti Malaysia Perlis, 01000 Kangar Perlis, Malaysia

Abstract: Brand loyalty and brand trust are known to be the fundamental aspect of brand management. Brand
loyalty is important to many companies as it increases their profit as well as market share. Customers tend to
choose the brand which they had put their trust and continue using the similar brand rather than taking risks
by purchasing a new and unfamiliar brand. Thus, brand trust also plays an important role in influencing the
behavior of customers, especially during their decision making process. A summary of the literature review has
been designed in this paper, which was retrieved from the previous studies (from the year 1998 to 2016). Even
though several factors have been examined separately in the previous researches, too little attention is focusing
on examining the combined effects of the brand management’s elements towards the brand loyalty, especially
with the present of the brand trust as the mediating variable. Thus, this paper has been written in attempting
to understand the concept of brand management, which includes its significance, dimensions and factors that
influence brand loyalty.

Key words: Brand Loyalty Brand Trust Brand Management

INTRODUCTION for a long time [5]. This engagement will help in

Brand loyalty plays an important role to the firms as
the loyal customers tend to repeatedly spend more on the
brand. They are not only buying the chosen product, but
also different products within the similar brand [1]. Brand
loyalty can be defined as the commitment of customers
towards the brand with the action of repeating purchase
in the future [2]. Due to the presence of numerous brand
in the market, it is important for the marketers to build
trust with their customers in order to retain them.
Brand trust plays an important role in the decision-
making process as customers are willing to rely on the
strength of the brand in order to understand the as-stated
purpose of the brand [3]. Once the customers are satisfied
with the services offered by the companies, their attitude
toward the companies will change. They tend to stay loyal
to the product brand that suits their preferences [4].
Therefore, it is a tough competitive battle to capture and
retain such customers. This is because the relationship
between the loyal customer and brand has been engaged
generating more profits to the companies as it costs six
times more to gain new customers than it does to retain
the existing customers. This will finally increase the
market share of the companies [6].
Besides that, the fierce competition among
companies in the business environment has urged them
to build a strong and long-lasting relationship with their
customers. Due to this phenomenon, companies are
seeking many ways to maintain their relationship with the
customers. However, retaining the existing customers is
not easy. For example, customers do not satisfy with the
late delivery despite the low quality of the product [7].
Currently, the presence of various choices of product
brands in the market has increased the choice of
customers’ selection. This phenomenon has forced
companies to embed an excellent value on their products
to make their products differ from their competitors [8].
Moreover, when customers get value for their money
spent, they will experience the full satisfaction towards
the product brands and there will be no reason for them to

Correspondent Author: Syahida Abd Aziz, School of Business Innovation and Technopreneurship,
Universiti Malaysia Perlis, 01000 Kangar Perlis, Malaysia.
27
 Middle-East J. Sci. Res., 26 (1): 27-34, 2018
change from the existing brand to other brands [9]. This
indicates the importance of brand value in understanding
the behavior of customers. However, focusing mainly on
the brand value alone will not assure that the customers
will remain loyal to the companies as other factors also
can influence the customer behaviour [6]. Customer
perceptions toward the brand will also influence their
purchase pattern as they will gather information and
distinguish the brand first before deciding to choose and
purchase the desired brand of the product [10]. This will
create a positive feeling or good impression about the
brand.
A study conducted by Kuikka and Laukkanen [2]
recommended a mediating variable to be studied together
in order to explain the direct and indirect effect of
predictors towards the criterion through the mediator.
Their research approach was supported by Malik, Naeem
and Munawar [11] who claimed that the additional
variable of the mediator will increase the extensive
explanation of the relationship between the independent
variables and dependent variable. In addition, Nsairi and
Khadraoui [12] explained about the extension of the
theoretical framework on the brand loyalty relationships
by integrating the brand trust as an additional variable
that mediates the brand loyalty relationships, which was
supported by Hsu [13] who acknowledged the mediating
effect of brand trust between the quality and customer
intention. To detail up the matter, previous researchers
has pointed out that the brand trust has shown the
significant relationship with the brand loyalty [10, 14].
On the other hand, in the previous studies, the brand
trust is acknowledged to be a mediator between the
product quality and brand loyalty [15, 16]; service quality
and brand loyalty [17]; brand value and brand loyalty
[18]; brand image and brand loyalty [19], which have been
conducted in different studies. Yet, the integrating effect
of brand trust on the relationship between the product
quality, brand service quality, brand value, brand image
and brand loyalty is still anecdotal. Therefore, this paper
tend to connect the theoretical gap by further
investigating the existence of brand trust in explaining the
brand loyalty relationships as suggested by Malik et al.
[11] and agreed by MacKinnon [20] to investigate how
the trust that is built on a brand will interfere and change
the relationship between the predictor and criterion.
In addition, the goal of this paper is to develop a
more rigorous understanding of the mediating role of
brand trust in the relationship between the brand
management’s elements and brand loyalty. Henceforth,
the outcomes of this paper will help many companies to
28
understand the combined effects of these elements with
the influence of brand trust on the brand loyalty in a
single model. In light of this, this paper intends to fill the
empirical gap by examining the combined effect of these
four brand management’s elements towards the brand
loyalty with the present of brand trust as the mediator.
Thus, the mediator role of brand trust in the previous
studies [19, 21] that is used to control the relationships in
the customer brand loyalty will be further discussed in the
next section.
Literature Review: Many researchers have studied on the
brand loyalty to get a better understanding of the
customer behavior. It can help companies in increasing
their profits and market share coverage [6]. Historically,
the study of brand trust on the topic of customer behavior
has been conducted since the 1990s [22]. Many
researchers are examining the influence of brand trust
towards the customer behaviour such as customer brand
loyalty as the antecedent factors [10, 23, 24]. However,
there are a limited number of studies focus on mediating
role of brand trust in the relationship between the brand
management’s elements and customer brand loyalty [19].
Although the studies on brand trust have existed a
long time ago as stated in the literature, researchers fail to
point out the other roles of brand trust other than being
an antecedent of brand loyalty [23, 25]. Brand trust is
believed to have a role of mediator between the brand
management’s elements (product quality, brand service
quality, brand value and brand image) and customer brand
loyalty [26]. This study differs from the previous research
in three ways. Firstly, researchers only examine the
combined effect of product quality, brand value and brand
image [27, 28] and the combined effect of brand service
quality, brand value and brand image [29]. However, there
is still a lack of study being done in measuring the
combined effect of product quality, brand service quality,
brand value and brand image. Therefore, this paper will
provides further insight into the combined effect of these
elements in brand management toward customer brand
loyalty in a single model.
Secondly, in the previous studies, many researchers
have examined the brand trust as the independent variable
of customer brand loyalty [10, 14, 23]. In regard to this,
limited studies examined the other roles of brand trust [11]
that can help marketers and practitioners to better
understand the behaviour of their customers. For that
reason, this paper will examine the mediating role of brand
trust in the relationship between the brand management’s
elements and customer brand loyalty. Thirdly, most of the
 Middle-East J. Sci. Res., 26 (1): 27-34, 2018

Table 1: Summary of Literature Review on Brand Loyalty

Authors Title Brand Loyalty concept/ definition Elements Population
Andreassen & Customer loyalty and Customer loyalty is an intended 1. Corporate image can be Package tour industry in Norway
Lindestad [27] complex services: behavior that shows the an extrinsic information cue
The impact of corporate possibility to renew contracts, for both existing and potential
image in quality, patronage, positive word of buyers and may or may not
customer satisfaction mouth or voice out. influence customer loyalty.
and loyalty for customers 2. Customer satisfaction
with varying degrees of 3. Value shows the price of
service expertise the service
4. Perceived Quality
Chaudhuri & The Chain of Effects from 1. Two aspects of brand 1. Brand performance that Manufacturing industries
Holbrook [31] Brand Trust and Brand loyalty (i.e. purchase loyalty consists of relative price and
Affect to Brand and attitudinal loyalty). market share.
Performance: 2. Purchase loyalty is the 2. Brand Loyalty
The Role of Brand Loyalty willingness of consumers to 3. Brand Trust
repurchase the brand. 4. Brand Affect
3. Attitudinal loyalty is the
commitment level of consumers
toward the brand.
Yang & Customer Perceived Value, Customer loyalty is the intention 1. Customer value Electronic commerce industry
Peterson [32] Satisfaction and Loyalty: of customer behavior to repeat or 2. Perceived satisfaction
The Role of Switching do business with the current 3. Switching cost
Costs company and tend to recommend
the company to others
Lin & An examination of the Customer loyalty is measured as 1. Trust m-commerce industry
Wang [33] determinants of customer two dimensions which are 2. Perceived value
loyalty in mobile attitudinal commitment and 3. Customer satisfaction
commerce contexts behavioral re-purchase intention 4. Habit
Jahanshahi, Study the effects of Customer loyalty consists of two 1. Customer service quality Indian automotive industry
Gashti, customer service and types which are attitudinal and based on the organization
Mirdamadi, product quality on behavioral. as a whole
Nawaser, & customer satisfaction 2. Product Quality
Khaksar [34] and loyalty 3. Customer Satisfaction
Auka [9] Service quality, Brand loyalty in the tendency 1. Service quality Kenya banking industries
satisfaction, perceived of loyal customers towards 2. Satisfaction
value and loyalty among tangible goods 3. Perceived Value
customers in commercial
banking in Nakuru
Municipality, Kenya
Chinomona & Customer satisfaction, Customer loyalty gives high 1. Customer Satisfaction African retailing industry
Sandada [35] trust and loyalty as chances for companies’ survival 2. Customer Trust that
predictors of customer and strong future growth. consists of affective and
intention to re-purchase cognitive trust.
South African retailing
industry
Geçti & The relationship between Brand loyalty is a behavior 1. Brand Trust Turkey sports shoe industry
Zengin [36] brand trust, brand affect, of customer towards the brand 2. Brand Affect
attitudinal loyalty and (i.e. repeated purchase).
behavioral loyalty:
A field study towards
sports shoe consumers
in Turkey
Hameed [37] The effect of advertising Loyalty is defined as the 1. Advertising spending Departmental stores in
spending on brand commitment to do repeat 2. Store image hypermarkets
loyalty mediated by store purchase of a product or service 3. Perceived quality
image, perceived quality in future consistently. 4. Customer satisfaction
and customer satisfaction:
A case of hypermarkets

29
 Middle-East J. Sci. Res., 26 (1): 27-34, 2018

Table 1: Continued
Mirzaee et al. [6] An examination of the
effect of brand's
dimensions on loyalty
of industrial customers
Mise et al. [4] Exploring the determinants
of brand loyalty in global
FMCG markets of soft
drink consumers in
Kenya and India
Nguyen et al. [26] The mediating role of
customer trust on
customer loyalty
Rad, Elahi, & An investigation on
Tazeabad [38] effects of perceived value
on brand popularity and
brand loyalty:
A B2B case study
Sivarajah & Influence of moderating
Sritharan [14] variables on attachment,
brand trust and loyalty
relationship
Upamannyu et al. Effect of brand trust,
[10] brand image on customer
brand loyalty in FMCG
sector at Gwalior region
Alkhawaldeh, Brand Equity and Brand
Salleh, & Loyalty: New Perspective
Halim [39]
Brand loyalty is the action of 1. Feeling towards the brand Foodstuffs stores
repeat purchase in future 2. Resistance to change
3. Perceived value
4. Brand Equity
5. Satisfaction
6. Trust
Brand loyalty is one of the 1. Product quality Soft drinks consumers
strategic assets of the 2. Repeat purchase
brand's equity 3. Satisfaction
4. Brand name
5. Price
6. Promotion
1. Customer loyalty measured in 1. Corporate social identity French financial institutions;
three approaches that is behavioral, that consists of corporate credit unions
attitudinal and composite. identity, corporate image and
2. Four stages develop loyalty corporate reputation.
(i.e. cognitive, affective, intentional 2. Trust plays mediate
and behavioral) role in the relationship
Brand loyalty is the other outcome 1. Perceived Risk Companies use e-service in Iran
of satisfaction which also defined as 2. Perceived Value that
the strong liking tendency of includes experience,
customer towards other companies social image,
that produced products and services. cost of change,
convenience and price.
3. Satisfaction
4. Brand popularity
Brand loyalty is the positive 1. Brand trust Fast moving consumer goods
attitude and commitment to 2. Attachment
purchase the same brand in future.
Brand loyalty is the possibility 1. Brand trust Indian fast moving consumer
changes of the brand made by 2. Brand image goods
customers once there are changes 3. Age
in the price, quality and feature 4. Gender
of the product 5. Qualification
6. Income
Brand loyalty it is one of the 1. Party brand awareness Political brand among voters
consequences of brand equity as 2. Party brand image
brand loyalty is connecting to 3. Party brand quality
intentions towards repeating 4. Party brand trust
purchase while brand equity
is about perception.

previous studies explored and measured the influence of
the combined effects of these brand management’s
elements and brand trust towards customer brand loyalty
separately [24, 28, 30]. There is no study has been
conducted to examine both of these relationships in a
single model. Therefore, to close the loop, this study
intends to understand the concept of brand
management’s elements and its influence on brand loyalty
with the present of brand trust which is shown in Table 1.
A study done by Chaudhuri and Holbrook [31]
disclosed the relationship between the chain of effect
(brand trust and brand affect) and brand performance
(market share and relative price) with the mediating role of
the two aspects of brand loyalty (purchase loyalty and
attitudinal loyalty). In that study, the authors gave a
comprehensive review on brand trust that has a direct
relationship on brand loyalty, which also improves the
performance of the brand. Nevertheless, the authors
examined the role of brand trust as the antecedents of
brand performance and not as a mediator in customer
behavior (brand loyalty). Hence, they suggested that
further study should be focused on the other roles of
brand trust in order to get a better understanding of the
outcomes of brand loyalty. Besides that, Geçti and
Zengin [36] investigated the relationship between the
brand trust and brand affect towards the brand loyalty.

30
 Middle-East J. Sci. Res., 26 (1): 27-34, 2018
They acknowledged that brand trust has positively
influence on both attitudinal and behavioral loyalty,
whereas brand affect has no significant influence on the
behavioral loyalty. In their studies, they addressed the
influence of brand trust and brand affect as the
antecedents of the brand. But, they did not analyse the
relationship with the other antecedents of brand loyalty
to strengthen the relationship. Thus, it is suggested that
researchers should further examine the complicated model
of brand trust with additional variables in order to gain a
better understanding of the outcomes of brand trust.
Moreover, Hameed [37] debated on the influence of
advertising spending on brand loyalty with the mediating
role of store image, perceived quality and customer
satisfaction. The findings from their study proved that the
advertising spending has no direct impact on the brand
loyalty, but has a direct impact on the store image and
customer satisfaction. Despite, the perceived product
quality is found to have a positive and direct impact on
customer satisfaction and brand loyalty, this study did
not measure the extent of the combined effects of other
variables as identified in the literature. Thus, it is
suggested that future research should further examine the
mediating role of brand trust in the customer brand loyalty
and make a comparison between the different industries
as most of the studies only focus on the hypermarkets’
sectors. In addition, Nguyen et al. [26] examined the
mediating role of trust on customer loyalty with the
existence of corporate social identity and they found that
there is a significant impact on the chain of the effect of
corporate identity, image and reputation on customer
trust, which will finally help companies to increase the
customer brand loyalty. However, Nguyen’s argument
relied too heavily on the concept of corporate level as the
influential factors. Hence, the findings will be far more
persuasive if the author considered the quality, image and
value of a brand provided by firms as the influential
factors in examining the brand loyalty.
Furthermore, Rad et al. [38] debated the effects of risk
on the perceived value of a customer and estimated its
influence on the behavior of the customers and they
found that perceived value has a significant influence on
satisfaction, brand popularity and brand loyalty.
However, in their study, they stated that it is essential for
companies to focus more on customer perceived value as
compared to the satisfaction because they found that
there is a strong relationship between the value and brand
loyalty as compared to the relationship between the
31
satisfaction and loyalty. The finding of the study shows
the importance of the perceived value. Thus, it furthers
encourage more investigations to be done by focusing
more on the influence of brand value towards brand
loyalty. Moreover, they suggested that further study
should examine the influence of brand image and brand
trust towards the customer brand loyalty.
As presented in Table 1, many researchers are
conducting studies on the brand trust as the independent
variable and fewer studies are examining on the other
roles of brand trust as the mediator of the relationship in
customer behavior. This gap generates a new call for a
research to explore and measure the extent of the
combined effect of these variables toward brand loyalty
with the mediating role of brand trust. Even though many
researchers acknowledged that product quality, brand
service quality, brand value and brand image are the
important elements that contribute to an increase in the
level of brand loyalty, a significant literature gap still
exists regarding their combined effect in a single model
with the present of the mediating factor such as brand
trust. It appears from the aforementioned investigations
that most attentions have been focused on measuring the
single determinant of brand loyalty such as product
quality, brand service quality, brand value and/or brand
image with or without mediating variables [30, 40]. So far,
there is little discussion on the extent of the combined
effect of these elements in influencing the brand loyalty
via the brand trust. Ishaq et al. [28] debated that the effect
of perceived quality, corporate image and customer value
towards the customer loyalty. However, in their studies,
they measured the customer satisfaction as the mediating
variable.
MATERIALS AND METHODS
This paper consists of a summary of the literature
review that has been retrieved from many journal articles,
conference proceeding, reports and working papers.
The time frame of the literature review was from the year
1998 to 2016. The purpose of doing this archival research
method is not limited to identifying the literature, but also
to delve deeper into the elements and factors that
influence the brand loyalty. Besides that, this paper also
intended to disclose the role of brand trust as the
mediator between the brand management’s elements
(product quality, brand service quality, brand value and
brand image) and brand loyalty.
 Middle-East J. Sci. Res., 26 (1): 27-34, 2018
CONCLUSION
Facing fierce competitors in the business
environment has urged many companies to deliver
high-quality product and service to their customers not
only to retain their existing customers but also to increase
their market coverage [41]. Improving the qualities of
product and service that offered did not help much to
build loyalty in customers as other factors such as the
image and value of the brand also play an important role
in their decision-making [42]. Therefore, a summary of the
previous literature was constructed to select few variables
that influence the brand loyalty.
Four variables, which are product quality, brand
service quality, brand value and brand image are selected
to be the independent variables while brand trust is
selected as the mediating variable in order to examine its
role in the relationship between the brand management’s
elements and brand loyalty. This paper is also intended to
disclose the role of brand trust as the mediator between
the combined effect of brand management’s elements
(product quality, brand service quality, brand value and
brand image) and brand loyalty. As discussed earlier,
many researchers are examining the variable of brand trust
as the antecedents of brand loyalty [10] and lack of study
being done to prove the role of brand trust as the
mediator of the above relationship.
Besides that, current researchers are discussing the
influence of a mediating factor with a single determinant
of brand loyalty, but, not the combined effect of these
elements in a single model [28]. Researchers should
further analyse these elements and propose a good
measurement of brand loyalty in order to get a better
knowledge on the mediating role of brand trust in the
combined effect of these elements on brand loyalty.
Therefore, to bridge these significant gaps, this paper will
examine the mediating role of brand trust in the above
relationship as it can bring a contribution to the existing
literature.
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