Effects of Two Types of Service Quality on Brand Equity in China: The Moderating Roles of Satisfaction, Brand Associations, and Brand Loyalty

Abstract

In mature industries characterized by the differences in environmental elements, service quality often distinguishes an organization from its rivals. Two types of service quality, such as physical and perceived ser-service

quality, may have different approaches to enhance brand equity. The authors developed a model that addresses the interrelationships between two types of service quality and brand equity and examined the moderating effects of satisfaction, brand associations, and brand loyalty. Based on survey data collected from department store customers in two major cities of China, the findings indicate that when the moderating effects are considered, the effect of physical service quality on brand equity is much stronger than the effect of perceived service quality.