Abstract

This study examines the relationship between brand trust and behavioral intention in a multiple channel (online/Offline) situation and how it helps in developing relationships with the brand. The study is supported by commitment–trust theory introduced by Morgan and Hunt (1994). A structured questionnaire was distributed among 545 customers who transacts in both offline and online channels the in banking sector. Findings indicate that offline brand trust has a higher impact than online brand trust and the combine effect (multichannel effect - MCBT) has less impact than even both offline and online brand trust on behavioral intention (BI). Furthermore, the relationship commitment partially mediates the relationship between the MCBT and BI. While discussing the impact of MCBT on BI the study proposes that brand managers to carefully reinvestigate brand related strategies to ensure a better service to their customers.

Highlights

  • One of the main goals of any organization would be to build a strong brand in the market, as this provides an ample platform of benefits to the firm, including less vulnerability to competitive marketing activities, larger margins, and greater intermediary co-operation and support and brand extension opportunities (Ballester & Aleman, 2005)

  • According to them brand reliability, is based on the extent to which the consumer believes that the brand accomplishes its value promise, and brand intentions, is based on the extent to which the consumer believes that the brand would hold consumers’ interests ahead of its self-interest when unexpected problems with the consumption of the product arise

  • The researcher used structural equation modeling (SEM) with a two stage approach (Anderson & Gerbing, 2008) to analyze data – first, standardized regression coefficients were estimated using measurement model and secondly Confirmatory Factor Analysis (CFA) was run to estimate the structural model to establish the validity of the constructs (Ahire, Golhar, & Waller, 1996)

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Summary

Introduction

One of the main goals of any organization would be to build a strong brand in the market, as this provides an ample platform of benefits to the firm, including less vulnerability to competitive marketing activities, larger margins, and greater intermediary co-operation and support and brand extension opportunities (Ballester & Aleman, 2005). The main reason for this is that the consumers look for convenience buying products and services and they select different channels when purchasing (Cassab & MacLachlan, 2009). This in literature is identified as multi-channel retailing which includes offline channels (traditional shops) and online channels (internet and mobile) (Ancarani, Jacob, & Jallat, 2009). In developing brand trust marketers need to needs the focus on both offline and online channels as consumers prefer to choose the most convenient channel whenever it suits them. This study focuses on the impact of offline/online brand trust and multichannel brand trust on behavioral intention

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