The Hidden Chain of Branded Telecommunication Services Delivery: Value, Trust, Brand, Price Tolerance and Word of Mouth Communication Chain

Abstract

Due to high customer switching behavior from one mobile service provider to another and high competition within the market, scholars, and marketers are trying to find and formulate the most appropriate consumer-driven business strategy to stay competitive. Grounded in means-end, value, and brand equity theories, this study proposes an integrative model in the telecom context to establish value → trust→ brand → price tolerance→ word of mouth communication (WOMC) chain. As a primary approach, the survey method is used through which 437 online responses were collected. Applying Structural Equation Modeling (SEM), the findings of this study show that the empirical outcomes tally with the proposed relationships (the chain) and the importance-performance map analysis indicates that both perceived value and brand trust have the highest influence on price tolerance. Brand image and perceived value also demonstrate to be of highest importance in building positive WOMC in the context of the telecoms industry. In addition, this study found that brand equity components have strong mediating effects, while the moderating roles of gender and age across groups varies. Overall, this study contributes to the service marketing, branding, and consumer behavior literature, particularly in the context of telecommunications.