The Relationship Between Brand Credibility, Service Quality, Switching Costs and Wordof- Mouth

Abstract

Purpose – This paper aims to analyze the relationship between brand creditibilityand word-ofmouth communication of consumers, considering one hand, the direct relationship and on the other hand, the possible mediation of perceived service quality and switching costs of consumers in automotive industry. Design/methodology/approach – The purpose of the research was carried out with a field study. This study was carried out using descriptive and relational survey methods, which are among the quantitative research methods. In this study, the questionnaire method was used to reveal the structural relationship between the variables examined. The research was conducted on automobile consumers living in the city of Istanbul, using a questionnaire method. This research, in which 650 consumers participated, was analyzed with the partial least squares method and using the SmartPLS (v.3.3.3) software. The construct, convergent and discriminant validity of the variables examined in the research model were calculated. The hypotheses put forward for the purpose of the research were tested with the bootstrapping technique. In addition, the accuracy of the hypotheses was examined with the research model path analysis. In addition, out of the model predictive power (PLS-predict) of the research model was examined and importance-performance analysis (IPMA) was performed. Findings – Results reveal significant effects of brand creditibilityon perceived service quality, switching costs and word-of-mouth communication of consumers. In addition to the direct relationships, results demonstrate that service quality and switching costs of consumers has mediating roles in the model. Discussion – The results show that creditibilityis a crucial determinant of service quality, switching costs, and word-of-mouth. Brand creditibilityaffects service quality, consumers’ switching costs and word-of-mouth behaviors. Managerial implications are articulated in a few key guidelines for manager: (1) developing and sustaining consistent marketing strategies for developing brand trust, service quality and switching costs, (2) developing effective marketing communication programs (3) leveraging investments in service quality.