The mediating impact of customer satisfaction in relation of brand equity and brand loyalty

Abstract

Purpose The purpose of this paper is to explore the inter-relationship of dimensions for consumer-based brand equity and brand loyalty with customer satisfaction as a mediator for oral care segment with special reference to Delhi and connecting areas. Design/methodology/approach For achieving the objective of this study, the theoretical model was tested through structural equation modelling. Research scales from the literature were modified for suitability. Data were collected from 250 respondents. Findings The results indicate that for the oral care segment, customer satisfaction is significantly related to the perceived quality, brand trust, perceived value of cost and lifestyle congruence. Moreover, customer satisfaction partially mediates the relationship of perceived quality and perceived value of cost with brand loyalty, whereas it fully mediates the relationship of lifestyle congruence and brand trust with brand loyalty. Thus, even for low-involvement products, consumer purchases are based on the attributes of the brand rather than being merely habitual. Originality/value The literature supports the direct influence of brand equity on brand loyalty. However, no other study has investigated the mediating role of customer satisfaction on the relationship between brand equity and brand loyalty for low-involvement products.

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