The role of advertising and promotions in enhancing brand credibility and customers’ using intention

Abstract

The antecedents of brand credibility have not been investigated in detail to find out what are the factors that influence brand credibility especially in service industry. Marketing mix elements is one of the factors that have been argued to be potential drivers of brand credibility. This study by targeting this issue tried to find out the significant relationship of advertising, monetary, and non-monetary promotions with brand credibility, which would result in higher expected utility among consumers by increasing quality perception, and decreasing perceived risk and information costs. SEM using AMOS developed to analyze the 177 data collected from consumers who were the users of telecommunication services. The results showed that both advertising and non-monetary promotions were in positive significant relationship with brand credibility, while the relationship between monetary promotions and brand credibility could not be supported. On the other hand, brand credibility was found to be positively related to perceived quality and information costs saved, and negatively to perceived risk; which would result in higher using intention.