DefinePK

Research Objective

To investigate the impact of brand transgression on consumer trust, brand loyalty, and purchase intentions, while examining the moderating role of religiosity.

Methodology

Quantitative approach using a scenario-based survey with 200 participants from urban areas of Pakistan. The study measured brand transgression, consumer trust, brand loyalty, purchase intentions, and religiosity using a 5-point Likert scale. Data analysis involved linear regression, moderated regression, and mediation analysis.

Methodology Flowchart

                        graph TD;
    A["Define Research Objectives & Hypotheses"] --> B["Literature Review"];
    B --> C["Develop Questionnaire"];
    C --> D["Scenario & Scale Development"];
    D --> E["Pre-Testing Questionnaire"];
    E --> F["Data Collection 200 Participants"];
    F --> G["Demographic Data Overview"];
    G --> H["Descriptive Statistics"];
    H --> I["Hypotheses Testing"];
    I --> J["Linear Regression H1, H2, H3"];
    I --> K["Moderated Regression H4"];
    I --> L["Mediation Analysis H5, H6"];
    J --> M["Analyze Results"];
    K --> M;
    L --> M;
    M --> N["Discussion & Conclusion"];                    

Discussion

Brand transgressions significantly erode consumer trust, which in turn is a critical driver of brand loyalty and purchase intentions. Religiosity amplifies the negative impact of brand transgressions on consumer trust, suggesting that religious consumers hold brands to higher moral standards. The study highlights trust as a crucial mediator and religiosity as an important moderating factor in consumer responses to brand transgressions.

Key Findings

Brand transgression negatively affects consumer trust. Consumer trust mediates the relationship between brand transgression and both brand loyalty and purchase intentions. Religiosity significantly moderates the effect of brand transgression on consumer trust, with highly religious consumers exhibiting greater trust erosion.

Conclusion

Brands must be mindful of their actions and actively work to rebuild trust when transgressions occur, especially considering the moderating role of religiosity. Brands that effectively manage trust recovery are more likely to retain loyal customers and preserve purchase intentions.

Fact Check

- Sample size: 200 participants. (Confirmed in Methodology section)
- Brand transgression negatively impacts consumer trust with a coefficient of -0.55 (p < 0.001). (Confirmed in Hypothesis Testing section)
- Religiosity moderates the relationship between brand transgression and consumer trust, with the interaction term (BT × R) being significant at -0.25 (p < 0.001). (Confirmed in Hypothesis Testing section)

Mind Map