Investigating the service brand: A customer value perspective

Despite considerable interest in the nature and role of marketing using a service perspective [Vargo S., Lusch R. Evolving to a new dominant logic for marketing. J Mark 2004; 68 (1): 1–17] there is limited research about branding. Research to date tends to be qualitative [e.g., Berry L. Cultivating service brand equity. J Acad Mark Sci 2000; 28: 128–137; de Chernatony L., Segal-Horn S. The criteria for successful services brands. Eur J Mark 2003; 37 (7/8): 1095–1118] rather than quantitative. This research closes this gap by developing and testing a theory of the influence of the service brand on the customer value–loyalty process. The model includes the traditional influence of brand image plus three additional influences that more fully reflect the broader service perspective (company image, employee trust, and company trust). Using survey data of a sample of 552 airline customers, the analysis shows there is a direct influence of all the aspects of the brand on customers' perceptions of value. In addition brand image, company image and employee trust have a mediated influence on customer value through customers' perceptions of service quality. Finally the analysis shows that a service brand does not have a direct influence on customer loyalty but rather its influence is mediated through customer value. This paper concludes with a discussion of the managerial and research implications.