Explore the Buffering Effects of Perceived Hidden Inflation on Survival of Mobile Phone Service Providers in Taiwan

Sheng-Wen Liu,Ying-Chieh Yang,Ralph Norcio

doi:10.3390/su9040555

Sheng-Wen Liu, Ying-Chieh Yang + Show 1 more

Open Access

https://doi.org/10.3390/su9040555

Copy DOI

Abstract

The purpose of this study is to examine the moderating role of perceived hidden inflation on the relationships between service quality, brand trust and brand loyalty. All data collected from the target population are analyzed through two-step structural equation modeling (SEM) and moderated multiple regression (MMR) to examine the hypotheses. 1,050 questionnaires are randomly distributed at 21 telecommunication service stores in Taiwan. Findings indicated that service quality has no direct impact on behavioral loyalty but it has a significant indirect impact on behavioral loyalty through brand trust or attitudinal loyalty. Moreover, findings identify perceived hidden inflation as the moderating role in the service quality–brand trust–brand loyalty chain. Besides the need for empirical confirmation of the hypotheses given, finally, there are several practical implications for service marketers and future research directions for scholars.

Highlights

In today’s highly competitive marketplace, it is not surprising that building a sustainable relationship with customers becomes the priority of merchants and service providers
Numerous studies have contributed to effects of inflation in the macroeconomic field, but relatively little research has focused on service quality–brand trust–brand loyalty chain under individuals’ perceived hidden inflation [12]
The same procedure is conducted to test the effect of service quality on the brand trust, attitudinal and behavioral loyalty respectively

Summary

Introduction

In today’s highly competitive marketplace, it is not surprising that building a sustainable relationship with customers becomes the priority of merchants and service providers. Companies try to re-package products or offer relatively poorer service quality in order to reduce corporate costs and not to raise the commodity price simultaneously. In this context, this phenomenon is referred to hidden inflation and is in line with Baghestani [11] and Devin [12], who explore the link between inflation and consumer behavior. Consumers believe that companies keep the commodity price the same, but the commodity itself has been changed To bridge this gap, this study attempts to integrate and examine empirically the moderating role of perceived hidden inflation and the possible links between service quality, brand trust and brand loyalty

Objectives

Results

Conclusion