Exploring the consequences of brand credibility in services

Abstract Purpose – The purpose of this study is to investigate whether the framework of brand credibility effects is applicable to service categories and to examine if brand credibility's impact differs according to service type and involvement level. Design/methodology/approach – Using a self‐administered survey (n=385), this study tests the proposed model, including six latent constructs: brand credibility, perceived quality, perceived risk, information costs saved, perceived value for money, and purchase intention. Findings – The results indicate that brand credibility exerts a strong effect on purchase intention by increasing perceived quality, perceived value for money, and information costs saved, and by decreasing perceived risk across multiple service categories. The results also indicate that the magnitude of brand credibility's impact on purchase intention varies under different conditions with regard to utilitarian and hedonic services. Research limitations/implications – This study is based on student samples with a limited number of service categories. Future research is needed to examine the generalizability of the proposed model by using non‐student samples with different service classifications. Practical implications – Establishing brand credibility seems to be especially effective in utilitarian services when marketing communication campaigns have the consistency of brand attributes that invoke either value for money or lower service brand‐related information efforts. Originality/value – This study offers an initial attempt to explain how brand credibility influences its key outcomes under different service classes. Perceived value for money could be considered a new mediator of a causal relationship between brand credibility and purchase intention in service sectors.