The Impact of Product Innovation on Relationship Quality in Automotive Industry: Strategic Focus on Brand Satisfaction, Brand Trust, and Brand Commitment

Abstract

This study examines the effect of product innovation on relationship quality in automotive industry. Based on the review of literature, it is evident that there are very limited studies which have come across the effect of product innovation on relationship quality and its dimensions; brand satisfaction, brand trust, and brand commitment. Therefore, this study aims to contribute to the literature and body of knowledge on the actual relationship between such variables. The automotive sector in Malaysia was selected to conduct this study whereby the data were collected from passenger car users in Northern region of the country. The data were analyzed using SPSS and structural equation modeling (AMOS). The findings revealed that the research model fits the data significantly and achieved the recommended values for all fit indices. In particular, the findings supported the significant positive effect of brand satisfaction on brand trust. Consequently, brand trust has significant positive effect on brand commitment. Moreover, the findings indicated that product innovation has significant positive effect on relationship quality and its dimensions; brand trust, brand commitment, and brand satisfaction. The findings also demonstrated that the main contribution of this study lies in the examination of product innovation as an antecedent to relationship quality and its dimensions rather than looking on the frequently used antecedents. These results and their implications along with avenues for further research are also elaborated in this study.