Abstract: The objective of this study is to improve the conceptualization of service quality, which serves as a sub-dimension of perceived quality and to explore the causal relationships between the dimensions of consumer-based brand equity in the service shop. Exploratory factor analysis were used to identify the dimensions of service quality. A total of 602 self-administrated questionnaires were distributed via non-probability sampling to test the proposed structural model. This study showed that the dimensions of service quality in the service shop were comprised of tangibles, responsiveness, empathy, assurance, recovery, and knowledge. The causal effects of service quality are significantly greater than product cues in formatting favorable consumer response towards the brand. Future study should include simultaneous examination of the four service quadrants as classified by Schmenner’s (1986), and investigates the universal dimensional of consumer-based brand equity in service industry by typology-specific. This study facilitates service managers in identifying which relevant dimensions of service quality to be improved in order to contribute to favorable results in brand awareness, brand image, and brand loyalty, rather than solely focus on product cues. The major contribution of the study is that it provides imperative insight into the development of consumer-based brand equity in the service industry that based on typology-specific.
Authors: Teck Ming Tan, Tze Wei Liew, William Lee, Michelle Bee Fang Ong, Su-Mae Tan
Source: International Journal of Marketing Studies
Tan, T. M., Liew, T. W., William, L., Michelle, O. B. F., Tan, S.-M. (2012). Consumer-based Brand Equity in the Service Shop. International Journal of Marketing Studies, Vol. 4 No. 4, pp. 60-77
Full-text Article: Consumer-based Brand Equity in the Service Shop_F
- Aaker, D. A. (1991). Managing brand equity. The Free Press, New York, NY.
- Aaker, D. A. (1996). Measuring brand equity across products and markets. The Free Press, New York, NY.
- Anderson, J. C., & Gerbing, D. W. (1988). Structural equation modeling in practice: A review and recommend two-step approach. Psychological Bulletin, 103, 411-423. http://dx.doi.org/10.1037/0033-2909.103.3.411
- Andreas, H. Z. (2001). Relative attitudes and commitment in customer loyalty models: Some experiences in the commercial airline industry. International Journal of Service Industry Management, 12(3), 269-294. http://dx.doi.org/10.1108/EUM0000000005521
- Angel, F. V.-R., & Manuel, J. S.-F. (2005). The impact of marketing communication and price promotion on brand equity. Journal of Brand Management, 12(6), 431-44. http://dx.doi.org/10.1057/palgrave.bm.2540238
- Aronson, E., Ellsworth, P. C., Carismith, J. M, & Gonzales, M. H. (1990). Methods of research in social psychology (2nd ed.). New York, NY.
- Aydin, S., & Ozer, G. (2005). The analysis of antecedents of customer loyalty in the Turkish mobile telecommunication market. European Journal of Marketing, 39(7/8), 910-925. http://dx.doi.org/10.1108/03090560510601833
- Aziz, N. A., & Yasin, N. M. (2010). Analyzing the brand equity and resonance of banking services: Malaysian consumer perspective. International Journal of Marketing Studies, 2(2), 180-189.
- Bamert, T., & Wehrli, H. P. (2005). Service quality as an important dimension of brand equity in Swiss services industries. Managing Service Quality, 15(2), 132-141. http://dx.doi.org/10.1108/09604520510585325
- Bello, D. C., & Holbrook, M. B. (1995). Does an absence of brand equity generalize across product classes?. Journal of Business Research, 34(2), 125-131. http://dx.doi.org/10.1016/0148-2963(95)00008-G
- Bentler, P. M. (1983). Some contributions to efficient statistics in structural models: Specification and estimation of moment structures. Psychometrika, 48(4), 493-517. http://dx.doi.org/10.1007/BF02293875
- Bentler, P. M. (2005). EQS 6 Structural equations program manual, Multivariate Software, Encino, CA.
- Boo, S., Busser, J., & Baloglu S. (2009). A model of customer-based brand equity and its application to multiple destinations. Tourism Management, 29, 219-231. http://dx.doi.org/10.1016/j.tourman.2008.06.003
- Boulding, W., & Kirmani, A. (1993). A consumer-side experimental examination of signaling theory: Do consumers perceive warranties as signals of quality?. Journal of Consumer Research, 20(1), 111-123. http://dx.doi.org/10.1086/209337
- Brady, M. K., & Cronin, J. J. (2001). Some new thoughts on conceptualizing perceived service quality: A hierarchical approach. Journal of Marketing, 65(3), 34-49. http://dx.doi.org/10.1509/jmkg.220.127.116.1134
- Browne, M. W., & Cudeck, R. (1993). Alternative ways of assessing model fit. In K. A. Bollen, & J. S. Long (Eds), Testing Structural Equation Models (pp. 136-162). Sage, Newbury Park, CA.
- Byrne, B. M. (2010). Structural equation modeling with AMOS: Basic concepts, applications, and programming (2nd ed.), Lawrence Erlbaum Associates, Mahwah, New Jersey.
- Christodoulides, G., & de Chernatony, L. (2010). Consumer-based brand equity conceptualization and measurement. International Journal of Market Research, 52(1), 43-66. http://dx.doi.org/10.2501/S1470785310201053
- Cook, D. P., Goh, C., & Chung, C. H. (1999). Service typologies: A state of the art survey. Production & Operations Management, 8(3), 318-338. http://dx.doi.org/10.1111/j.1937-5956.1999.tb00311.x
- Cronin, J. J., & Taylor, S. A. (1992). Measuring service quality: A reexamination and extension. Journal of Marketing, 56(3), 55-68. http://dx.doi.org/10.2307/1252296
- de Run, E. C., & Kusyarnadi, H. (2008). Service recovery strategies in western based fast food restaurants: A structural equation model test. International Journal of Business and Society, 9(2), 33-42.
- Dodds, W. B., Monroe, K. B., & Grewal, D. (1991). Effects of price, brand, and store information on buyers’ product evaluations. Journal of Marketing Research, 28(3), 307-319. http://dx.doi.org/10.2307/3172866
- Esch, F. R., Langner, T., Schmitt, B. H., & Geus, P. (2006). Are brands forever? How brand knowledge and relationships affect current and future purchases. Journal of Product & Brand Management, 15(2), 98-105. http://dx.doi.org/10.1108/10610420610658938
- Flavián, C., Guinalíu, M., & Gurrea, R. (2006). The role played by perceived usability, satisfaction and consumer trust on website loyalty. Information and Management, 43(1), 1-14. http://dx.doi.org/10.1016/j.im.2005.01.002
- Fornell, C., & Larcker, D. (1981). Structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39-50. http://dx.doi.org/10.2307/3151312
- Gil R. B., Andrés E. F., & Salinas E. M. (2007). Family as a source of consumer-based brand equity. Journal of Product & Brand Management, 16(3), 188-199. http://dx.doi.org/10.1108/10610420710751564
- Grewal, D., Krishnan, R., Baker, J., & Borin, N. (1998). The effect of store name, brand name, and price discounts on consumer’s evaluations and purchase intentions. Journal of Retailing, 74(3), 331-352. http://dx.doi.org/10.1016/S0022-4359(99)80099-2
- Gwinner, K. P, Gremler, D. D., & Bitner, M. J. (1998). Relational benefits in services industries: The customer’s perspective. Journal of the Academy of Marketing Science, 26(2), 101-114. http://dx.doi.org/10.1177/0092070398262002
- Hair, J. F., Black, W. C., Babin, B. J. & Anderson, R. E. (2010). Multivariate data analysis: A global perspective (7th ed.), Prentice Hall, Upper Saddle River, New Jersey.
- Hennig-Thurau, T., & Klee, A. (1997). The impact of customer satisfaction and relationship quality on customer retention: A critical reassessment and model development. Psychology and Marketing, 14(8), 737-64. http://dx.doi.org/10.1002/(SICI)1520-6793(199712)14:8<737::AID-MAR2>3.0.CO;2-F
- Henry, T., Catherine C., & Ada, L. (2010). An exploratory study of the relationship between customer-based casino brand equity and ﬁrm performance. International Journal of Hospitality Management, 29, 754-757.
- Hoyer, W. D., & Brown, S. P. (1990). Effects of brand awareness on choice for a common, repeat-purchase product. Journal of Consumer Research, 17(2), 141-148. http://dx.doi.org/10.1086/208544
- Johns, N., & Howard, A. (1998). Customer expectations versus perceptions of service performance in the foodservice industry. International Journal of Service Industry Management, 9(3), 248-256. http://dx.doi.org/10.1108/09564239810223556
- Judd, V. C. (2002). Achieving a customer orientation using people-power, the 5th “P”. European Journal of Marketing, 37(10), 1301-1313. http://dx.doi.org/10.1108/03090560310487112
- Kandampully, J., & Hu, H. (2007). Do hoteliers need to manage image to retain loyal customer?. International Journal of Contemporary Hospitality Management, 19(6), 435-443. http://dx.doi.org/10.1108/09596110710775101
- Keller, K. L. (1993). Conceptualizing, measuring, and managing customer-based brand equity. Journal of Marketing, 57(1), 1-22. http://dx.doi.org/10.2307/1252054
- Keller, K. L. (1998). Strategic brand management: Building, measuring, and managing brand equity, Prentice-Hall, Upper Saddle River, New Jersey
- Keller, K. L. (2003). Building, measuring and managing brand equity (2nd ed.), Prentice-Hall, Upper Saddle River, New Jersey.
- Kim, H. B., & Kim, W. G. (2005). The relationship between brand equity and firms’ performance in luxury hotels and chain restaurants. Tourism Management, 26, 549-560. http://dx.doi.org/10.1016/j.tourman.2004.03.010
- Kim, W. G., & Kim, H. B. (2004). Measuring customer-based restaurant brand equity: Investigating the relationship between brand equity and firms’ performance. Cornell Hotel & Restaurant Administration Quarterly, 45(2), 115-131. http://dx.doi.org/10.1177/0010880404264507
- Kivela, J., Inbakaran, R., & Reece, J. (1999). Consumer research in the restaurant environment, Part 1: A conceptual model of dining satisfaction and return patronage. International Journal of Contemporary Hospitality Management, 11(5), 205-222. http://dx.doi.org/10.1108/09596119910272739
- Lapierre, J. (1996). Service quality: The construct, its dimensionality, and its measurement. In T. A. Swartz, D. E. Bowen, S. W. Brown (Eds), Advances in Services Marketing and Management 5 (pp. 45-70).
- Lovelock, C. H. (1983). Classifying services to gain strategic marketing insights. Journal of Marketing, 47(3), 9-20. http://dx.doi.org/10.2307/1251193
- Lu, C. S., Lai, K. H., & Cheng, T. C. E. (2007). Application of structural equation modeling to evaluate the intention of shippers to use internet services in liner shipping. European Journal of Operational Research, 180(2), 845-867. http://dx.doi.org/10.1016/j.ejor.2006.05.001
- Malai, V. & Speece, M. (2010). Perceived customer value relationships and cultural impacts on its. Retrieved January 18, 2011 from http://smib.vuw.ac.nz:8081/WWW/ANZMAC2004/CDsite/papers/Malai1.PDF.
- Marsh, H. W., & Hocevar, D. (1985). Application of confirmatory factor analysis to the study of self-concept: First and higher order factor models and their invariance across groups. Psychological Bulletin, 97(3), 562-582. http://dx.doi.org/10.1037/0033-2909.97.3.562
- Muller, C. C. (1998). Endorsed branding: The next step in restaurant-brand management. Cornell Hotel & Restaurant Administration Quarterly, 39(3), 90-97. http://dx.doi.org/10.1177/001088049803900317
- Nunnally, J. C. (1978). Psychometric Theory, McGraw-Hill, New York, NY.
- Olorunniwo, F., Hsu, M. K., & Udo, G. J. (2006). Service quality, customer satisfaction, and behavioral intentions in the service factory. Journal of Services Marketing, 20(1), 59-72. http://dx.doi.org/10.1108/08876040610646581
- Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1985). A conceptual model of service quality and its implications for future research. Journal of Marketing, 49(4), 41-50. http://dx.doi.org/10.2307/1251430
- Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1988). SERVQUAL: A multiple item scale for measuring customer perception of service quality. Journal of Retailing, 64(Spring), 12-37.
- Paul, W. C. S., Gary, Y. Y.-Y., & Hsiao, C.-R. (2010). The effect of store image and service quality on brand image and purchase intention for private label brands. Australasian Marketing Journal, 19(1), 30-39.
- Pike, S., Bianchi, C., Kerr, G., & Patti, C. (2010). Consumer-based brand equity for Australia as a long-haul tourism destination in an emerging market. International Marketing Review, 27(4), 434-449. http://dx.doi.org/10.1108/02651331011058590
- Roberts, J., Morrison, P., Chandrashekaran, M., & Gordon, A. (2004). Measuring sources and outcomes of brand equity. Communication in ANZMAC Conference, Australian and New Zealand Marketing Conference.
- Rosa R. E., & Riquelme H. E. (2008). Brand equity for online companies. Marketing Intelligence & Planning, 26(7), 719-742. http://dx.doi.org/10.1108/02634500810916681
- Rust, R. T., & Oliver, R. L. (1994). Service Quality: Insights and managerial implications from the Frontier. In T. R. Roland, L. O. Richard (Eds), Service Quality: New Directions in Theory and Practice (pp. 1-19), Sage, Thousand Oaks, CA.
- Schmenner, R. W. (1986). How can service businesses survive and prosper?. Sloan Management Review, 27(3), 21-32.
- Simon, C. J., & Sullivan, M. W. (1993). The measurement and determinants of brand equity a financial approach. Marketing Science, 12(1), 28-52. http://dx.doi.org/10.1287/mksc.12.1.28
- Srivastava, R., & Shocker, A. D. (1991). Brand equity: A perspective on its meaning and measurement. Marketing Science Institute Working Paper Series, Report 91-124, Marketing Science Institute, Cambridge, MA.
- Styles, C., & Ambler, T. (1995). Brand management. In Crainer, S. (Eds), Financial times handbook of management, Pitman, London, 581-593.
- Szymanski, D. M., Bharadwaj, S. G., & Varadarajan, P. R. (1993). An analysis of the market share-profitability relationship. Journal of Marketing, 57(3), 1-18. http://dx.doi.org/10.2307/1251851
- Tan, T. M. & Devinaga, R. (2011). A review of online trust branding strategies of financial services industries in Malaysia and Australia. Advances in Management and Applied Economics, 1(1), 125-150.
- Tan, T. M., Hishamuddin, I., & Devinaga, R. (2011). Hierarchical chain of consumer-based brand equity: Review from the fast food industry. International Business & Economics Research Journal, 10(9), 67-80.
- Tan, T. M., Tan, S.-M., William L., Michelle, O. S. F. & Liew, T. W. (2012). Does brand equity model vary between female and male? Result of an empirical investigation. International Journal of Research in Management, 2(3).
- Tong, X. (2006). Creation of brand equity in the Chinese clothing market. Unpublished doctoral dissertation, University of Missouri, Columbia, US.
- Tong, X., & Hawley, J. M. (2009). Measuring customer-based brand equity: Empirical evidence from the sportswear market in China. Journal of Product & Brand Management, 18(4), 262-271. http://dx.doi.org/10.1108/10610420910972783
- Wang, H. Z., Wei, Y. J., & Yu, C. L. (2008). Global brand equity model: combining customer-based with product-market outcome approaches. Journal of Product & Brand Management, 17(5), 305-316. http://dx.doi.org/10.1108/10610420810896068
- Xu, J. B., & Andrew C. (2009). A conceptual framework of hotel experience and customer-based brand equity. Some research questions and implications. International Journal of Contemporary Hospitality Management, 22(2), 174-193. http://dx.doi.org/10.1108/09596111011018179
- Yasin, N. M., Noor, M. N., & Mohamad, O. (2007). Does image of country-of-origin matter to brand equity?. Journal of Product & Brand Management, 16(1), 38-48. http://dx.doi.org/10.1108/10610420710731142
- Yoo, B., Donthu, N., & Lee, S. (2000). An examination of selected marketing mix elements and brand equity. Journal of the Academy of Marketing Science, 28(2), 195-212.
- Zain, R. (2007). Pengaruh product quality dan service quality terhadap tingkat brand awareness nasabah: Studi kasus Permata Bank Syariah. In Partial Fulfillment of the Requirement for the Degree Master of Science. Universitas Indonesia Eprints.
- Zeithaml, V. A., Parasuraman, A., & Berry, L. L. (1990). Delivering service quality. The Free Press, New York, NY.
- Zemke, R., & Schaaf, R. (1989). The service edge: 101 companies that profit from customer care, NAL Books, New York, NY. http://dx.doi.org/10.1177/0092070300282002