Direct and Indirect Effects of Product Innovation and Product Quality on Brand Image: Empirical Evidence from Automotive Industry

This study examines the effect of product innovation and product quality on brand image with brand trust as mediator. Past studies paid less attention to empirically determine the relationship between the said variables on brand image and using brand trust as mediator between such independent and dependent variables. Therefore, this study aims to fill up this gap and contribute to the body of knowledge by examining the relationship between them. Data is collected using questionnaire from 287 passenger car users at shopping malls in Northern region of Malaysia. Specifically, systematic sampling procedure was followed during data collection. The data is analyzed using structural equation modeling (AMOS). The findings indicate that product innovation and product quality have significant relationship with brand image. The findings also reveal that product innovation and product quality have significant relationship with brand trust. Additionally, brand trust mediates the relationships between product innovation and brand image. It is also found that brand trust mediates the relationship between product quality and brand image. Based on these findings, several conclusions were made with some recommendations for future researches to strengthen our understandings toward the process of developing brand image.

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