Mediating Role of Brand Trust between Perceived External Prestige and Brand Satisfaction: Evidence from Smartphone Users

Abstract

Purpose - The main purpose of the study is to investigate the impact of perceived external prestige on brand satisfaction of smartphone users of Pakistan and mediating role of brand trust in the relationship between perceived external prestige and brand satisfaction. This study posits that for the users’ satisfaction with brand, reputation of the brand among their friends, colleagues and society is major determinant. Design/methodology/approach –The data were collected from the smartphone users of Pakistan. The link of online questionnaires was shared through Facebook messages, and email. Paper pencil questionnaires weer distributed among the students of different campuses of University of Sindh Jamshoro. In this study, convenience sampling technique was used for collection of data. The sample size in this study consisted of 250 smartphone consumers. Structural Equation Modeling through AMOS 21 is used to test structural model to test the validity of model and hypothesis testing. Findings - The findings indicate that there is a positive and significant relationship of perceived external prestige with brand trust and brand satisfaction. Brand trust also fully mediates the positive relationship between perceived external prestige and brand satisfaction. Mediating model explains 61% variance in the dependent variable. Practical implications – For the managers and marketers of smartphones, findings of this study are helpful in understanding the importance of brand prestige in the eyes of users. Marketers should focus on enhancing brand prestige perception by disseminating information related to its features and benefits and increase positive word of mouth to enhance brand trust and satisfaction. Originality/value – This study is first in the nature to develop and test the model of perceived external prestige in smartphone users’ context. Previous studies have focused on word of mouth perceptions, but insights of prestige perceptions will guide practitioners to position their brands at new horizon in the minds of customers. This study provides theoretical and practical implication which will enhance satisfaction of smart phone users.