Abstract
This study plans to investigate and analyze the influence of service quality on brand trust and brand trust on brand loyalty by utilizing the Precious One users as the object and population. Based on this goal, this study is designed quantitatively; thus, we grab the samples by simple random sampling. According to the Isaac and Michael formula, the total pieces should be 344. However, 251 users respond to filling the questionnaire; hence, the participating rate is 75.45%. Moreover, we use confirmatory factor analysis to validate the responses, the Cronbach Alpha analysis to test response reliability, and the structural equation model based on covariance to examine the related hypotheses. Overall, we find that service quality positively affects brand trust. Also, this positive sign is available in the causal relationship between brand trust and brand loyalty. Hence, the service quality is vital for Precious One to commit to building brand trust, creating brand loyalty.
Highlights
For a company, competing in a goods market needs segmenting, targeting, and positioning
We find that service quality positively affects brand trust
The first hypothesis testing result displays that brand trust has a positive influence on brand loyalty
Summary
For a company, competing in a goods market needs segmenting, targeting, and positioning. Segmentation is how the company utilizes the varied demands of a similar group of prospective customers based on their same features and responses. The company has to evaluate each market segment's attractiveness and select a part of the served market. Based on the definite market selection, the company needs to strengthen product acceptance in the marketplace in the positioning stage (Setiadi, 2019). To execute it, the company needs a brand for its products to be placed in the customer's mind (Tjiptono, 2011). The brand can keep the product attractive (Aaker, 2010). The company needs loyal customers to the brand. The company can increase the revenue from the sold products, charge the premium price for the marketed products, and save the operating expenses, like advertisements and distribution, for instance, to market products (Giddens & Hofmann, 2010)
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