Does brand trust matter to brand equity?

Abstract

Purpose: The most recent literature on competitive advantage views brand equity as a relational market‐based asset because it arises from the relationships that consumers have with brands. Given the fact that trust is viewed as the corner‐stone, as well as one of the most desirable qualities in any relationship, the objective of this study is to analyze the importance of brand trust in the development of brand equity. Specifically, the paper examines the relationships network in which brand trust is embedded. Design/methodology/approach: A quantitative methodology was adopted. The data are based on a survey conducted in a region in the south‐eastern part of Spain, resulting in 271 surveys. Findings: The findings reveal that brand trust is rooted in the result of past experience with the brand, and it is also positively associated with brand loyalty, which in turn maintains a positive relationship with brand equity. Furthermore, the results suggest that, although brand trust does not play a full mediating role as suggested by Morgan and Hunt, it contributes to a better explanation of brand equity. Originality/value: These results have significant implications. The fact that brand equity is best explained when brand trust is taken into account reinforces the idea that brand equity is a relational market‐based asset. Therefore, branding literature may be enriched through the integration with the literature on the resource‐based‐view of the firm. From a practical point of view, companies must build brand trust in order to enjoy the substantial competitive and economic advantages provided by brand equity as a relational, market‐based asset.