The moderator effect of monetary sales promotion on the relationship between brand trust and purchase behaviour

Abstract

This study empirically tested the effect of two brand trust dimensions, brand reliability and brand intentions, on consumers' spending in individual brands. The findings reveal much of the effect was from brand intention and confirmed customer satisfaction was an antecedent to brand trust. In addition, the findings show that brand trust effect could be significantly moderated by monetary sales promotions in a way that brand reliability would play no role if the consumer's buying behaviour was strongly affected by monetary sales promotions. Managerial implications of the trade-off between the investment in sales promotions and the investment in enhancing customers' trust in a brand are also discussed.