The Magic of Branding: The role of 'Pledge', 'Turn' and 'Prestige' in Fostering Consumer Trust in Financial Services

The purpose of this paper is to study the impact of brand image on consumer trust through empirical investigation in the context of financial services sector. Whilst trust helps to bind consumers to brands, a strong brand... [ view full abstract ]

The purpose of this paper is to study the impact of brand image on consumer trust through empirical investigation in the context of financial services sector. Whilst trust helps to bind consumers to brands, a strong brand image works like magic in reducing consumers’ risk perception and promoting trust. This study analyses how the dimension of brand image influences key constructs of trust through operationalising an interdisciplinary brand-trust model. Constructs and measures were drawn from interdisciplinary brand and trust literature and tested through employing EFA, CFA and structural equation modelling. Data was collected using a survey-based quantitative approach (N=300). The study unveils interesting findings that in engendering consumer trust the magic of financial services branding is in the ‘pledge’ or ‘prestige’ but not in the ‘turn’ (The Prestige, 2006). The research contributes to the convergent and mutually inclusive theories of trust and branding as well as services marketing literature. For managers and policy makers in the financial services sector the findings will help them to effectively manage brand image and fostering consumer trust.