How service quality influences brand equity The dual mediating role of perceived value and corporate credibility

Purpose - The aim of this study is to test a holistic model that investigates the direct influence of service quality on building consumer based brand equity, along with the mediating role of corporate credibility and perceived value. Design/methodology/approach - A self-administrated questionnaire was used to collect data from the customers of local and foreign banks in the Islamabad and Rawalpindi regions of Pakistan. The hypothesized relationships were tested using structural equation modeling procedure. Findings - The results suggest that perceived value and corporate credibility fully mediate the relationship between perceived service quality and consumer based brand equity. Practical implications - This study is managerially important for two reasons. First, it will help managers to focus on a more integrated and holistic approach in building consumer based brand equity of their service firms. Second, it will provide clear guidelines for managers regarding how investments in different aspects of important marketing constructs can influence consumer preferential relations with a brand. Originality/value - This research is probably the first to investigate a holistic model that explores the causal relationships among service quality, perceived value, corporate credibility and consumer based brand equity of service organizations.