Academic journal article International Journal of Marketing Studies

The Effects of Brand Credibility on Customer's WOM Communication: The Moderator Role of Brand Commitment: A Conceptual Paper

Academic journal article International Journal of Marketing Studies

The Effects of Brand Credibility on Customer's WOM Communication: The Moderator Role of Brand Commitment: A Conceptual Paper

Article excerpt

Abstract

The use of brand credibility by companies continues to be a popular method to support the brand commitment, and to encourage the customer to own more satisfaction and positive word of mouth communication about the brand. When the customers focus on the positive aspects of a company, they usually express it by using the positive words of mouth communication, and which in turn is considered the goal of any company. The reason that lies behind using brand credibility is its direct and indirect strong impact that makes customers more positive toward the brand. This theoretical paper develops a conceptual framework that explains how brand credibility affects brand commitment, and brand commitment impacts on the dependent variable which is called word of mouth communication. Furthermore, this framework shows that brand credibility is the independent variable, brand commitment is the mediating variable and the word of mouth communication is the dependent variable of this study.

Keywords: Brand Credibility, Brand Commitment, WOM Communication

1. Introduction

Customers often remember the most successful companies in different ways, for example, during the procurement process or advising others, and those companies focused on the quality of the provided product and service.

Nowadays, in order to define a brand, give its emphasis on identity, which is an important invisible element, but has originality and roots. One of the favorite areas of brand management is creating a sense in consumers' minds through the identity for the brands (Kazemi et al., 2013).

According to Thomas et al. (2012), the most important asset of a company is the brand they own. For customers, a brand can simplify the choice process, promise quality, reduce risk (Keller & Lehmann, 2006) and also motivate repeated buying (Aaker, 1996; Keller, 2001).

A strong brand is a competitive advantage, a barrier for entry in some markets, easier acceptance among distributors and consumers etc. for the organization it owns (Farquhar, 1989).

Many authors consider that the credibility of the brand is a major cause of customer satisfaction and loyalty, which creates its turn to talk with people in a positive way about the product or the service, which in turn gives the company a lot of profits and competitive strength. Literature of this study, tries to give more details about this point, which are as follows:

The management of customer is a top priority of executives in service industries such as retail banking and telecommunications. It is accepted wisdom in marketing that new customer acquisition is a far more costly undertaking than establishing a broader and deeper relationship with existing customers (Sweeney & Swait, 2008). The high speed of exchange and communication leads to the creation of a very competitive market for companies which are working not only in the international scale, but also in the local one (Ghorban & Tahernejad, 2012). The survival path in this competitive market is trying to attract more customers and retain them (Sweeney & Swait, 2008). Therefore, the more a company attracts customers, the more it generates profit and value for company.

Ghorban & Tahernejad (2012) believed that attracting more customers is not a key factor to have a successful firm.

Their notion was that in the new economics, managers have to focus more on the frontline staff and the technology, because they found that there is a way to make profit in the economy. Heskett et al., (1994) had drawn a chain, this chain included a linkage between firm profitability, customer loyalty and pleasure, and yield of employees of the firms, they mentioned that value and revenue are outcomes of customer loyalty. Besides, satisfied customer can create loyal customer and satisfaction is influenced by the quality of offered products and services. Heskett et al. (1994) mentioned that retaining customer create more profit and value that attract more new customers. …

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