The impact of Perceived Value Determinants on Brand Loyalty: The moderating role Customer Trust

Abstract

This study aims to determine the impact of Product quality, customer engagement, Perceived Experience, and Perceived risk on Perceived value, with Customer trust as a moderating variable. In today’s increasingly competitive business environment, identifying the sources of perceived value is an essential step for any brand that aims to improve customer satisfaction and reinforce customer loyalty. For this study, an attempt to analyze data quantitatively is made, and a survey methodology is used to collect data from a sample of 282 respondents who are consumers in various fields of industry. A structured questionnaire was used to collect the relevant data. In the data analysis process, Structural Equation Modeling was utilized to assess the direct impacts of the studied variables. The interaction terms were used to determine the effect of Customer Trust on the aforementioned impacts. The data show that product quality, customer engagement, and perceived experience have a strong positive impact on perceived value, which is also significant, while perceived risk results in a significant negative impact on perceived value. At the same time, Customer trust has a positive impact on value while strengthening the positive impacts of product quality, engagement, and experience. Additionally, Customer trust suppresses the negative impact of perceived risk. The results of the study imply that establishing trust is one of the most effective ways of improving the perceived value of a product or service. This conclusion also provides marketing professionals, who are responsible for providing quality, interpersonal emotions, and experience while managing the levels of perceived risk with practical guidelines for value enhancement. The theoretical implications are rooted in certain requirements concerning the further elaboration of the concept of value. The general management implications are connected with the possible development of customer relations as a strategic path leading to enhanced brand loyalty.