Modeling the Role of Service Quality, Customer Satisfaction and Customer Loyalty in Building Service Brand Equity

Abstract

This study comprehends a framework for measuring strength of service brands in service industry of Pakistan using three fundamental pillars in building service brand equity i.e. service quality, customer satisfaction and customer loyalty. The results validated through the structural equation modeling (SEM) indicates the significance of customer loyalty that is contingent to satisfied customers. Moreover, in the context of service sector organizations, customer satisfaction is highly dependent on service quality. The mediation testing further indicates that customer satisfaction mediates and strengthens the relationship between service quality and customer loyalty, while, the latter fully mediates the relationship between customer satisfaction and service brand equity. Based upon the findings, this study develops a pyramid of building service brand equity. Finally, theoretical and managerial implications have been discussed.