Applying the framework of brand credibility effects to service categories
Baek, Tae Hyun
MetadataShow full item record
Using signaling theory, this study attempts to examine whether the framework of brand credibility effects is applicable to service categories and to investigate how the power of brand credibility's impact differs according to service type (hedonic and utilitarian) and involvement (high and low). The theoretical framework proposed in this research expands previous work on brand credibility effects by incorporating a new construct. Structural equation modeling was used to test the proposed model including six latent constructs: brand credibility, perceived quality, perceived value for money, perceived risk, information costs saved, and purchase intention. The results found that brand credibility exerts a strong effect on purchase intention by increasing perceived quality, perceived value for money, and information costs saved, and by decreasing perceived risk across service categories. The results also indicated that the magnitude of brand credibility's impact on purchase intention varies across different conditions in regard to service type.