Radyan Dananjoyo*
| Udin Udin
© 2023 IIETA. This article is published by IIETA and is licensed under the CC BY 4.0 license (http://creativecommons.org/licenses/by/4.0/).
OPEN ACCESS
The primary goal of this study is to experimentally examine the mediating role of customer trust in the impact of sustainable brand equity on customer satisfaction and customer loyalty. We employed a quantitative methodology and designed a survey questionnaire to measure sustainable brand equity. The survey was administered to 220 construction material retailers in Jakarta, Indonesia. Our investigation focuses on how antecedents of sustainable brand equity influence customer perceptions of satisfaction and loyalty in the retail trade for building materials. We used structural equation modeling (SEM) in AMOS version 26 for the analysis. Our findings demonstrate that antecedents of sustainable brand equity (such as brand awareness, brand identification, physical quality, staff behavior, lifestyle congruence, and ideal self-congruence) directly and significantly influence customer trust. In turn, customer trust directly and significantly influences customer satisfaction and loyalty. Interestingly, while customer trust does not impact customer loyalty, customer satisfaction does, with a strong influence. Hence, customer loyalty is greatly affected by customer satisfaction. This study's significance lies in demonstrating how the development of sustainable brand equity affects trust, satisfaction, and loyalty among building material retailers. The emergence of customer trust as a mediator between sustainable brand equity, customer satisfaction, and customer loyalty forms the focal point of this study.
sustainable, brand equity, trust, satisfaction, loyalty
One of Indonesia's foundational sectors is the building material sector. All around the nation, small-scale family businesses predominate. Customers have a wide range of options when choosing building material merchants in Indonesia because there are thousands of them. As a result, the retailer needs to be able to develop a strong brand that adds to brand equity [1]. Brand equity measurement was primarily linked to the financial outcome which measured through customers’ views. In this situation, all organizations, including merchants of building materials, are willing to establish strong brand equity in order to set themselves apart from the competition. Therefore, assessing consumers' perceptions of long-term brand equity will reveal a thorough grasp of how companies affect customer loyalty and satisfaction. In order to measure consumer pleasure and loyalty, this study focused on sustainable brand equity. The exposure of sustainable brand equity is anticipated to be a ground breaking development breakthrough for the brand equity management in the building material industry.
Creating sustainable cities and communities is Goal 11 of the United Nations’ Sustainable Development Goals (SDGs) and this project will specifically address Target 11.1: “By 2030, ensure access for all to adequate, safe and affordable housing and basic services and upgrade slums”. Cities have become increasingly inaccessible and exclusionary to many due to growing urbanisation and unaffordable property prices, leading to what has become a global housing affordability crisis affecting nations across income levels.
Essentially, brand equity is measured through the minds of customers, making the consideration of sustainable concepts critical for assessing brand equity [2]. Since the emergence of brand equity concepts over the last three decades, various models have been introduced that include various brand equity dimensions. Customer loyalty, brand awareness, perceived quality, brand associations, and other proprietary assets were introduced as brand equity dimensions in the initial model [3]. Furthermore, Keller explained that the brand equity concept occurs when customers become familiar with the brand and embrace several positive, unique, and strong perceptions of the brand [4]. Brand knowledge and brand awareness are recognized as brand equity elements based on these concepts. The other scholar defined brand equity as customer loyalty, perceived quality, and brand awareness/associations [5]. Furthermore, the brand equity model alternative discloses staff behaviour, physical quality, ideal self-congruence, brand identification, and lifestyle-congruence [6].
Furthermore, brand equity refers to the value clients attribute to the brand based on their perceptions of value, service, quality, and item ascribes. These numerous variables contribute to a brand's engagement and influence customer satisfaction [7]. Customer satisfaction is generated when the customer has complete faith in the brand [8]. Furthermore, customer satisfaction is measured by how well customers feel about the brand they have chosen and how well it performs in comparison to their expectations. In this regard, customer trust is a critical component for measuring customer relationships in the building material retailer industry. These findings are consistent with the previous study, which identified trust as a moderating variable in measuring brand equity and brand-customer relationships [9]. Customer trust is then recognized as a critical factor in generating customer loyalty [10]. It means that the loyal customer will minimize risk by assessing overall brand equity, customer trust, customer loyalty, and customer satisfaction. As a result, it is critical to investigate the relationship between sustainable brand equity, customer trust, customer satisfaction, and customer loyalty in the building material retailer industry.
Much research has investigated the correlation among customer loyalty as well as customer satisfaction, but no research examined the sustainable brand equity impact on customer trust customer satisfaction, and customer loyalty. The previous study inspected the importance of sustainable brand equity in the context of the automotive industry [11, 12], fashion retail [13], hospitality industry [7], the insurance industry [2], tourism industry [14], telecommunication industry [15], food industry [16], banks industry [17], as well as education industry [18]. To the best of the researchers' knowledge, this is the first study to observe the sustainable brand equity model in the building material industry. As a result, the researchers intend to investigate the building material industry because it has been identified as a fundamental industry of the national economy with a critical function to improve the circular economy, manage the ecological environment, and improve human completion [19-21].
The primary contribution of this study is to fill a knowledge gap by investigating the relationship between sustainable brand equity antecedents and customer trust, as well as the relationship between customer trust on customer satisfaction and loyalty. There is no other study in the building material industry that focuses on sustainable brand equity antecedents toward customer trust, customer satisfaction, and customer loyalty. Thus, this study concentrated on defining customer trust as a mediator between sustainable brand equity toward customer satisfaction and customer loyalty. In order to clarify the connection between sustainable brand equity, customer trust, customer satisfaction, and customer loyalty; this study discuss literature review in section 2. Then, hypotheses development discussed in section 3. Thirdly, methodology explored in section 4. Fourthly, results of the study appear in section 5. Then, the discussions of the study was displayed in section 6. Lastly, the conclusions of the study were mentioned in section 7.
Recently, sustainability has been regarded as the most important feature for the global business community [22]. Then, sustainability can be identified as the measurement tools to ensure that a product or system can work continuously throughout its lifecycle while having the least amount of business impact [23]. The central concept of sustainability is to demonstrate that economic, environmental, and social benefits have an impact on future business development [24]. The concept of sustainability has a direct impact on brand equity. Essentially, the importance of meeting supply and demand is explained by economic concepts and social benefits [25].
In the midst of the global industry's revolution, sustainability is critical for each company to meet the needs of its customers. In the building materials industry, retailers provide customer settlements through sustainability. As a result, building material retailers benefit from social, economic, and environmental advantage when they are able to generate sustainable brand equity. It means that retailers of building materials should be able to use sustainability as a marketing tool to entice more customers to buy their products. Generally, each customer evaluates their purchasing decision based on the power of innovation or sustainability [26, 27]. This suggests that in the building materials industry, the customer drives change.
Once a building material retailer did not satisfy customers’ requirements, they would continue pursuing other alternatives which provide better product and services. Therefore, customers are evidently always looking for more suitable options to satisfy their needs. The retailer of building materials should then be able to identify customers' needs based on their motivation [28, 29]. As a result, a building material retailer will be able to establish an excellent reputation if they can meet the needs of their customers, maintain product quality, and provide after-sales service [30].
In general, the building material industry in Indonesia is a low entry barrier industry. The invasion of various industries and small and medium-sized businesses resulted in intense competition and a price war. These circumstances are causing brand disparity and constructing business problems for building material retailers. Numerous studies have been conducted on various topics related to the building material construction sector, including property management [31], housing developer performance [32], risk management [33], facilities management [34], client prospecting [35], construction safety [36], building information modelling [37], and time performance [38].
As previously stated, the majority of literature in the field of building material construction has focused on sustainable product development, with no previous study discussing sustainable brand equity. The primary goal of this research is to investigate the impact of long-term brand equity in the building materials industry. The study of sustainable brand equity in the building materials industry has been recognized as an innovative breakthrough in providing theoretical value for sustainability, brand equity, customer trust, customer satisfaction, and customer loyalty.
3.1 Sustainability
In terms of the company’s’ and business success, sustainability is beneficial. The measurement of sustainability for this study using three essential factors namely social, economic, and environmental [39]. In order to achieve sustainability integration, each company should be able to increase customer trust [26]. Even though only few studies examine the relation between customer trust and sustainability, previous scholar found a notable and positive relationship between sustainability concepts with customer trust in regard to hospitality industry [40]. Earlier study also found sustainable brand equity in the telecommunication industry firmly in relation to customer trust [41]. Since no studies have been conducted to assess the relationship between sustainable brand equity and customer trust in the building materials industry, the following hypothesis was proposed:
Hypothesis 1: There is a positive correlation between sustainable brand equity and customer trust in the building material industry.
Hypothesis 1a: There is a positive correlation between sustainability and customer trust in the building material industry.
3.2 Brand awareness
Brand awareness is the potential customers’ capacity to recognize and keep in mind that a particular brand belongs to a particular product category. It is regarded as the most important factor influencing customers' perceptions of a brand [42]. Moreover, brand recognition and brand recall are essential elements of brand awareness. Brand recall is the process of recovering a brand from a customer's memory; brand recognition, on the other hand, can be defined as a customer's ability to authorize prior experience with the brand [43]. Furthermore, increased brand awareness and acceptance indicate a positive demand for a specific brand [44]. Brand equity is the first determinant that should be observed when developing strong brand equity [45]. Then, it indicates that a higher level of brand awareness results in the creation of a dominant brand [46]. As a result, the researchers proposed that:
Hypothesis 1b: There is a positive correlation between brand awareness and customer trust in the building material industry.
3.3 Brand identification
Customers' primary activity when purchasing a product or service is to identify their needs and offers from any institution or person. These scenarios reflect social identity theory, which states that identification can be defined as a point of view of interrelationship between a group of people and a corporate entity [47]. Customers' perceptions of brand attributes that influence their commitment and meaningful relationship with the product and service are thus defined as brand identification [48]. The primary variables used to develop brand identification are cognitive (awareness of membership), evaluative (awareness of value associations), and emotional (the affective interest in the evaluations) [49, 50].
Furthermore, customers' involvement in civic-minded behaviours is affected by individual identity. The central idea behind this brand identification is to demonstrate that people are willing to distinguish themselves from others and identify with their concepts [51]. Brand identification then influenced customer trust by enhancing perceived performance and creating an affective attachment to the brand [52]. It means that customer trust occurs when brand performance meets or exceeds expectations [53]. In the context of this study, brand identification is acknowledged through a close relationship between customers and retailers. These investigations have prompted the current study to propose the following hypothesis:
Hypothesis 1c: There is a positive correlation between brand identification and customer trust in the building material industry.
3.4 Physical quality
The physical quality of the retailers' facilities, equipment, materials, and designs reflects their image [7]. There are two types of perceived quality factors: intrinsic and extrinsic attributes [54]. The former refers to the product's physical characteristics such as form, colour, appearance, and flavour, whereas the latter refers to the product's non-physical characteristics such as price, brand, services, and packaging [55]. Customers' perceptions of quality are primarily influenced by previous product or service purchases. Customers' quality perception, on the other hand, is influenced not only by previous experience but also by brand advertisement, brand name, and price [56]. As a result, product specification, performance, aesthetic design, convenience, customer support, and specification are the determinants of perceived quality [57]. Physical quality is regarded as an important factor in the purchase decisions of customers by building material retailers.
Numerous studies have found a positive relationship between physical quality and customer trust. Both were thought to have a positive impact on customer trust. Furthermore, physical quality has been identified as a key determinant of CBBE, with a positive correlation with customer trust in the hotel and restaurant industries [7]. Recently discovered that physical quality had a significant influence on customer trust in the retail industry [15]. The following hypothesis was proposed by this study:
Hypothesis 1d: There is a positive correlation between physical quality and customer trust in the building material industry.
3.5 Staff behaviour
Staff behaviour is essentially related to the retailer employees' responsiveness, competence, friendliness, and helpfulness [58]. The interaction between personnel and customers influenced by brand equity [59]. It means that employees’ capacity to deliver on customer expectations as well as their capacity to fortify customer relationships determines how effectively brand equity performs. Previous research has found that the emergence of high-quality staff behaviour has a significant impact on retail customer trust [60]. Personnel behaviour had a positive impact on customer trust, which was relevant to previous studies. Meanwhile, because this study is focused on the relationship between building material retailer staff behaviour and customer trust, the following is the study hypothesis:
Hypothesis 1e: There is a positive correlation between staff behaviour and customer trust in the building material industry.
3.6 Lifestyle-congruence
Almost usually, customers who purchase goods in retailers rely on their perceptions of particular brands and how they see themselves. When customers have a good fit between their self-concept and the retailer's patron image, it causes them to have a positive attitude toward that retailer, which is known as the self-congruity concept [61]. Self-congruence has a significant impact on several aspects of customer behaviour, including brand loyalty and brand satisfaction [62].
Furthermore, customers investigate the benefits of the product based on their self-congruence, such as lifestyle, identities, habits, preferences, and values [63]. In this case, lifestyle is regarded as an important factor in the daily lives of customers, as it relates to their attitudes, beliefs, and aspirations [64]. Lifestyle-congruence is defined in the context of brand consumption as customers' distinct pattern of living based on their interests, opinions, and activities [7]. Lifestyle-congruence has also been identified as a symbol of brand attributes [65]. Furthermore, lifestyle congruence influenced customer trust in the retail industry [66]. As a result, the researchers proposed:
Hypothesis 1f: There is a positive correlation between lifestyle-congruence and customer trust in the building material industry.
3.7 Ideal self-congruence
Each customer is also willing to use brands that add value because it reflects an ideal self-congruence [67]. Therefore, ideal self-congruence is considered to be the best extra benefit that gives the customer a competitive edge. A previous study found that ideal self-congruence influenced customer trust in the retail industry [7]. Other studies have recently revealed that ideal self-congruence has a significant effect on customer trust [68]. The researchers proposed the following hypothesis in the context of the building materials industry:
Hypothesis 1g: A positive assessment of building material retailer customers' ideal self-congruence influences customer trust of building material retailer customers.
3.8 Customer satisfaction and customer loyalty
Customer satisfaction is defined as customers' feelings of pleasure or displeasure as a result of a comparison of their perceptions and expectations [69]. Customer satisfaction can be justified as a result of positive confirmation revealed through perceptions of product performance [70]. It means that for each corporation to build a positive customer relationship, customer satisfaction is a strategic factor [71]. Most customers are constantly looking for more advanced alternatives to meet their needs [28]. The customer then always makes a proper selection toward goods or services that meet their needs [72].
Similarly, the customer is satisfied when their expectations are met or exceeded, and dissatisfied when their expectations are not met [73]. A satisfied customer also has a positive purchase intention to repurchase, positive word of mouth, and loyalty over a longer period of time [74]. Customer satisfaction is the most important factor in generating customer loyalty [75]. Customers' willingness to remain loyal to an organization's goods or services is repeatedly dependent on customer satisfaction [76].
In the building materials industry, customer satisfaction can be calculated based on a retailer's ability to provide similar building materials as promised [77]. The primary reason for customer satisfaction is the customers' experiences, which are linked to the total amount of money spent on building material retailers' consumption [78]. As a result, when perceptions exceed expectations, the customer is satisfied. Furthermore, long-term brand equity plays an important role in generating customer satisfaction, which is mediated by customer trust [79]. Then, it was discovered that customer trust acted as a moderator between long-term brand equity and customer loyalty [80].
As a result, customer loyalty is described as a customers’ promise to consistently purchase a good or service in the future, regardless of a circumstance or marketing initiative that would try to influence the customers’ behaviour. Customer satisfaction has almost certainly been claimed to be a precursor for customer loyalty [81, 82]. The length of the relationship between the customer and the producer can be used to determine the level of customer loyalty. Generally, satisfied customers are considered excellent customers because they will share their joy with other customers [83]. Based on previous empirical studies, the researchers proposed the following hypotheses:
Hypothesis 2: There is a positive correlation between customer trust and customer satisfaction in the building material industry.
Hypothesis 3: There is a positive correlation between customer trust and customer loyalty in the building material industry.
Hypothesis 4: There is a positive correlation between customer satisfaction and customer loyalty in the building material industry.
3.9 Customer trust
Customer trust is defined as a positive belief in a specific product, service, or brand [84]. However, reputable brands have a greater influence on customer satisfaction, which is mediated by customer trust [85]. The increase in brand trust increased customer confidence and brand loyalty [86]. Therefore, customer trust is not only directly related to customer loyalty, but it also acts as a mediator between brand equity and customer loyalty [87]. Customer trust, according to the other report, indicated a high-quality brand, which had a significant impact on brand loyalty [83]. As a result of their findings, the researchers proposed the following hypothesis:
Hypothesis 5: There is a positive correlation between sustainable brand equity and customer satisfaction mediated by customer trust in the building material industry.
Hypothesis 6: There is a positive correlation between sustainable brand equity and customer loyalty mediated by customer trust in the building material industry.
The current study was intended to use a quantitative method. The quantitative method was chosen for this study due to the researcher's willingness to answer research questions through data analysis. As a result, the researchers used the Structural Equation Modelling (SEM) technique to assess the research's hypothesis testing. The primary justifications for utilizing SEM because of its ability to measure the correlation between latent variables and the capacity to describe which independent variable affects dependent variables or which variables have a relationship to one another [88]. It is feasible for the current study, which looked at the relationship between latent variables such as sustainability, brand awareness, brand identification, physical quality, staff behaviour, lifestyle-congruence, ideal self-congruence, customer trust, customer satisfaction, and customer loyalty.
For this study, non-probability sampling was used. Data was gathered from the customers who purchased cement bags from building material retailers in Jakarta, Indonesia. According to BPS Statistics Indonesia, Jakarta is the most populous city in Indonesia, with approximately 10.5 million people [89]. It was for this reason that the study was held in Jakarta. Of the 300 questionnaires distributed to building material retailers' customers, 220 responses were returned, representing a response rate of 73.3 percent. Then, the sample size of 220 was sufficient to investigate the hypotheses in our study [90].
The constructs of research were assessed employing seven-point Likert items, ranging from strongly disagree (1) to strongly agree (7). The measurement indicator of Sustainable brand Equity for this study adopted from [15, 91]. Sustainability employs nine indicators [91], brand awareness use three indicators, brand identification with three indicators, physical quality exercise six indicators, staff behaviour involve three indicators, lifestyle congruence determine three indicators derived, and ideal self-congruence investigate three indicators [15]. It means there are thirty indicators used for sustainable brand equity. The measurement of customer trust adopting five indicators, while customer satisfaction using four indicators, and customer loyalty utilising six indicators [15].
The information was obtained from the owner of a building materials retailer in Jakarta, Indonesia. From the 300 questionnaires distributed to customers of housing developers, 220 responses were received. There were 127 male respondents (57.73%) and 93 female respondents (42.27%) in this study. An online questionnaire was used because there is insufficient publicly available data on the number of building material retailer owners.
According to Table 1, all variables are discriminately valid because their indicator values are greater than 0.50. It means that the loading value satisfied the measurement model criteria for this study. As a result, composite reliability and Cronbach's alpha are commonly used to assess the dependability of internal consistency. The overall reliability test results in Table 2 indicated that the questionnaire used in this study is reliable, with a composite reliability and Cronbach's alpha greater than 0.70.
However, R2 examine the explained variance of the latent variable compare to its total variance [92]. R2 which has higher value means that the independent latent variable has better ability to explain the latent dependent variable. There are several threshold value for R2 measurement namely weak (0.19), moderate (0.33), and substantial (0.67). Based on Table 3, customer trust has the most substantial value by 0.782, while lifestyle congruence has the weakest value by 0.462.
According to the first hypothesis in this study, the sustainable brand equity factor has a positive and significant influence on customer trust. The sustainable brand equity factor had a positive and significant effect on customer trust, with an estimated value of 0.592 and a CR on the effect of 4.326, which was greater than 1.96. Previous research in the hospitality industry discovered a positive relationship between the sustainable brand equity and customer trust [43].
The findings of this study support hypothesis 1a, namely the sustainability factor influences customer trust positively. Based on the hypothesis testing results in Table 4, an estimated value was 0.267, while the CR on the effect of 2.634 was greater than 1.96. It was discovered that the sustainability factor had a significant impact on customer trust. According to Madanaguli et al. [93], the higher the sustainability factor in the tourism sector, the higher the customer trust.
Hypothesis 1b in this study shows that the brand awareness factor influences customer trust positively. According to the hypothesis testing results in Table 4, there was an estimated value of 0.594 and a CR on the effect of 2.329, which was greater than 1.96, indicating that the brand awareness factor had a positive and significant effect on the customer trust. It is supporting previous study in the hospitality industry which confirm positive relationship between brand awareness and customer trust [43].
Table 1. Validity test
|
Constructs |
Item Loading |
|
Sustainability (SUS) |
|
|
SUS1 |
0.524 |
|
SUS2 |
0.656 |
|
SUS3 |
0.717 |
|
SUS4 |
0.575 |
|
SUS5 |
0.839 |
|
SUS6 |
0.948 |
|
SUS7 |
0.663 |
|
SUS8 |
0.513 |
|
SUS9 |
0.5775 |
|
Brand Awareness (BAW) |
|
|
BAW 1 |
0.625 |
|
BAW 2 |
0.697 |
|
BAW 3 |
0.542 |
|
Brand Identification (BID) |
|
|
BID 1 |
0.584 |
|
BID 2 |
0.627 |
|
BID 3 |
0.714 |
|
Physical Quality (PHY) |
|
|
PHY 1 |
0.583 |
|
PHY 2 |
0.652 |
|
PHY 3 |
0.719 |
|
PHY 4 |
0.684 |
|
PHY 5 |
0.732 |
|
PHY 6 |
0.594 |
|
Staff Behaviour (SBE) |
|
|
SBE 1 |
0.635 |
|
SBE 2 |
0.504 |
|
SBE 3 |
0.729 |
|
Lifestyle Congruence (LCO) |
|
|
LCO 1 |
0.839 |
|
LCO 2 |
0.643 |
|
LCO 3 |
0.528 |
|
Ideal Self Congruence (ISC) |
|
|
ISC 1 |
0.632 |
|
ISC 2 |
0.429 |
|
ISC 3 |
0.786 |
|
Customer Trust (CTR) |
|
|
CTR 1 |
0.659 |
|
CTR 2 |
0.826 |
|
CTR 3 |
0.546 |
|
CTR 4 |
0.752 |
|
CTR 5 |
0.637 |
|
Customer Satisfaction (CSA) |
|
|
CSA1 |
0.628 |
|
CSA2 |
0.764 |
|
CSA3 |
0.673 |
|
CSA4 |
0.853 |
|
Customer Loyalty (CLO) |
|
|
CLO1 |
0.728 |
|
CLO2 |
0.623 |
|
CLO3 |
0.545 |
|
CLO4 |
0.643 |
|
CLO5 |
0.712 |
|
CLO6 |
0.845 |
Hypothesis 1c in this study mentioned that the brand identification factor positively influences customer trust. The hypothesis testing in Table 4 revealed that the brand identification factor had a positive and significant effect on customer trust, with an estimated value of 0.182 and a CR on the effect of 3.117, which was greater than 1.96. It backs up previous research in the retail industry that found a positive relationship between brand identification and customer trust [10]. Another study conducted in the banking industry reveals that the total effect of brand identification confirms when customer trust the company [94].
Table 2. Reliability test
|
Main Variable |
Composite Reliability |
Cronbach's Alpha |
|
Sustainability Brand Awareness Brand Identification Physical Quality Staff Behaviour Lifestyle Congruence Ideal Self Congruence Customer Trust Customer Satisfaction Customer loyalty |
0.824 0.750 0.728
0.837 0.856 0.726
0.785
0.816 0.743
0.865 |
0.873 0.724 0.813
0.753 0.861 0.762
0.713
0.829 0.813
0.765 |
Table 3. R2 test
|
Main Variable |
R2 |
|
Sustainability Brand Awareness Brand Identification Physical Quality Staff Behaviour Lifestyle Congruence Ideal Self Congruence Customer Trust Customer Satisfaction Customer loyalty |
0.689 0.476 0.623 0.478 0.658 0.462 0.519 0.782 0.653 0.573 |
Then, hypothesis 1d in this study shows that the physical quality factor influences customer trust positively. According to Table 4, the physical quality factor had a positive and significant effect on customer trust, with an estimated value of 0.293 and a CR on the effect of 2.568, which was greater than 1.96. It supports previous study that was conducted in the hospitality industry which found a positive relationship between physical quality and customer trust [43].
Furthermore, hypothesis 1e in this study shows that the staff behaviour factor has a positive influence on customer trust. The staff behaviour factor had a positive and significant effect on customer trust, according to Table 4, with an estimated value of 0.126 and a CR on the effect of 3.272, which was greater than 1.96. It supports previous study in the banking industry that clearly indicates a positive relationship between staff behaviour and customer trust [95]. In addition, the other study in the hospitality industry shows the significant impact of staff behaviour toward customer trust [96].
However, hypothesis 1f in this study demonstrates that the lifecycle congruence factor has a negative influence on customer trust. According to Table 4, the lifestyle congruence factor had a negative effect on customer trust, with an estimated value of -0.318 and a CR of -0.063 on the effect lower than 1.96. It implied that the independent variable had no effect on the dependent variable. As a result, the conditions were not met, and the hypothesis was rejected. It means lifestyle congruence did not influence customer trust in the building material industry.
Therefore, hypothesis 1g in this study indicates that the ideal self-congruence factor positively and significant influence on customer trust. Based on Table 4, it shows the ideal self-congruence factor had a positive and significant effect on customer trust, with an estimated value of 0.423 and a CR on the effect of 6.541, which was greater than 1.96. It was similar with the previous research in the hospitality industry that found a positive relationship between ideal self-congruence and customer trust [43].
Table 4. Research hypothesis parameter
|
Hypothesis |
Estimate |
CR |
Results |
|
H1: Sustainable Brand Equity → Customer Trust |
0.592 |
4.326 |
Supported |
|
H1a: Sustainability → Customer Trust |
0.267 |
2.634 |
Supported |
|
H1b: Brand Awareness → Customer Trust |
0.594 |
2.329 |
Supported |
|
H1c: Brand Identification → Customer Trust |
0.182 |
3.117 |
Supported |
|
H1d: Physical Quality → Customer Trust |
0.293 |
2.568 |
Supported |
|
H1e: Staff Behaviour → Customer Trust |
0.126 |
3.272 |
Supported |
|
H1f: Lifestyle Congruence → Customer Trust |
-0.318 |
-0.063 |
Supported |
|
H1g: Ideal Self |
0.423 |
6.541 |
|
|
Congruence → Customer Trust |
|
|
Not Supported Supported |
|
H2: Customer Trust → Customer Satisfaction |
0.612 |
2.645 |
Supported |
|
H3: Customer Trust → Customer Loyalty |
0.462 |
3.683 |
Supported |
|
H4: Customer Satisfaction → Customer Loyalty |
0.378 |
2.648 |
Supported |
|
H5: Sustainable Brand Equity → Customer Trust à Customer Satisfaction |
0.119 |
2.548 |
Supported |
|
H6: Sustainable Brand Equity à Customer Trust → Customer Loyalty |
0.258 |
4.657 |
Supported |
Additionally, the second hypothesis in this study shows that the customer trust factor has a positive and significant influence on customer satisfaction. As shown in Table 4, the customer trust significantly influence on customer trust, with an estimated value of 0.612 and a CR on the effect of 2.645, which was greater than 1.96. Previous research in the halal industry discovered a positive relationship between the customer trust and customer satisfaction [97]. The other study in the health industry also confirm there are positive impact of customer trust on customer satisfaction [98].
Also, the third hypothesis in this study shows that customer trust has a positive and significant influence on customer loyalty. Based on the results shown in Table 4, an estimated value of 0.462 and a CR on the effect of 3.683, which was greater than 1.96. It validates previous study in the health insurance industry which discovered a positive relationship between customer trust and customer loyalty [99]. In addition, the fourth hypothesis in this study shows that customer satisfaction has a positive and significant influence on customer loyalty. According to Table 4, it can be seen that an estimated value of 0.378 and a CR on the effect of 2.648, which was greater than 1.96. It verifies previous study in the residential housing industry which found a positive relationship between customer satisfaction and customer loyalty [85].
The fifth hypothesis confirmed that customer trust positively and significantly mediates the relationship between sustainable brand equity toward customer satisfaction. It can be seen from an estimate value of 0.119 and CR value of 2.548. It proves previous study conducted in the banking industry which confirm the mediation effect of customer trust on sustainable brand equity toward customer satisfaction. [100].
Finally, this study found that customer trust positively and significantly mediates the relationship between sustainable brand equity toward customer loyalty. It can be seen from an estimate value of 0.258 and CR value of 4.657. It validates previous study in the residential housing industry which found that customer trust positively and significantly mediates the relationship between sustainable brand equity toward customer loyalty [10].
The study results revealed that brand awareness was identified as the most significant variable of sustainable brand equity from building material retailer influencing customers’ customer trust. It means that the majority of customers who are aware of specific brands will be trust with the products. In the context of the retail industry, these findings are relevant to previous research conducted by Nam et al. [7], which stated that brand equity is a key component of brand equity, influencing brand satisfaction. Customers' brand awareness influences their level of trust when they are aware of the brand. Customers will be satisfied with a specific product or service if they are aware of and familiar with it.
Brand identification is a key value that contributes to the strengthening of customer-brand relationships [15]. According to this study, customers' identification of cement brands influenced brand satisfaction by 33.2%. This means that the findings of this study back up the findings of the previous study, which found that brand identification had a significant influence on brand satisfaction [50]. When a brand meets or surpasses the expectations of the customer, it creates a strong brand identity and the customer is ultimately satisfied.
Consequently, physical quality is seen as one measure of service quality that positively affect customer trust. Additionally, other researchers hypothesized that customer satisfaction was influenced by physical quality. A recent study found that both local and global societies placed priority on physical quality. In the context of the retail industry, this examination result backs up an earlier study discovered that customers of retailers were significantly more satisfied when physical quality was high.
The excellence of staff behaviour, such as staff manner, staff willingness to assist, staff cleanliness, quickness, and great services, is one of the fundamental factors influencing service quality [81]. Furthermore, customer trust emerged when a company was able to supply high-quality staff. These findings back up the study's findings that retailer staff behaviour had a significant correlation with customer trust.
The lifestyle congruence primarily expresses customers' daily needs and desires. Customers who make decisions can satisfy their demands depending on their lives by doing so. This indicates that their way of life is unique, as evidenced by their judgments, affairs, interests, and beliefs. Since lifestyle congruence is related to customer purchase intent, the higher the compatibility of customers' lifestyles, the higher the level of trust [65]. These findings are pertinent to the study's finding that customers' retailers in the building material retailer had a direct impact on customer trust.
Furthermore, most customers want to choose a particular brand that offers an ideal congruence, providing customers with extra value. In this regard, previous research found that customer trust was greatly affected by a greater ideal congruence level. Recent research has also discovered that ideal congruence is a significant indicator of customer trust in the retail banking industry. As a result, the researchers can conclude that the current study results, which show that the ideal lifestyle for the customer in the building material retailer is positively related to customer trust, are consistent with the previous study.
Customer trust is a result of a brand’s performance meeting or exceeding expectations. According to certain studies, customer satisfaction rises as a result of improved customer trust. It was then observed that the high level of customer loyalty was influenced by the high level of customer trust. As a result, another outcome of customer satisfaction is customer loyalty. It means that high levels of customer loyalty were associated with high levels of customer satisfaction. Those findings are also relevant to the current study's findings, which confirmed that excellent customer satisfaction led to the highest level of customer loyalty in the building materials industry.
According to the majority of studies, customer loyalty is a dependent variable of customer satisfaction. Furthermore, customer loyalty is known to be strongly correlated with customer trust. Recently, customer loyalty was found to be positively impacted by customer trust in the retail industry. The study's findings of increased customer trust contributed to the high level of customer loyalty among building material retailers' customers. Finally, the current study's findings support previous research by estimating customer loyalty through customer trust.
The goal of this study was to assess customer satisfaction and loyalty using customer trust and sustainable brand equity elements (sustainability, brand awareness, brand identification, staff behaviour, lifestyle-congruence, ideal self-congruence, and physical quality). This article primarily makes three significant contributions. First, the study confirmed that sustainable brand equity antecedents directly triggered the presence of customer trust. This study discovered that sustainable brand equity antecedents played an important role in determining customer trust in the context of the building material industry.
Second, the study establishes that sustainable brand equity antecedents indirectly influenced customer satisfaction and customer loyalty. In the prior study, customer trust in the sustainable brand equity measurement was not examined or experimentally confirmed. These findings broaden our understanding of brand building in the context of sustainable brand equity. Third, the current study confirms that customer trust directly triggered the emergence of customer satisfaction and customer loyalty in the building material industry. This article postulates that customer trust functions influence customer satisfaction and customer loyalty. Following that, the findings of this study encourage companies to develop a functional plan for generating customer trust, thereby directly initiating customer satisfaction and customer loyalty.
Despite the fact that this study contributes significantly to brand equity in the building materials and retail industries, it has limitations. First and foremost, the study was conducted in Indonesia, a developing country, and the results obtained in developed countries may differ from the current study, which requires further consideration. Second, future research should put this conceptual framework to the test using alternative methodologies such as mixed-method design. By combining quantitative and qualitative methods, the research results should provide more accurate perceptions. Finally, enriching the conceptual framework with business performance indicators such as profit loss ratio, return on investment, and market share will be broadening the article's contribution to both academia and the industrial sector.
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