Dinkum Journal of Economics and Managerial Innovations (DJEMI).

Publication History

Published: January 01, 2023




Rashesh Paudel, Vaidya Devkota, & Niranjan Chen (2023). Impact of customer trust on brand satisfaction through expected benefits in the automobile sector of Nepal. Dinkum Journal of Economics and Managerial Innovations, 2(01):49-57.


© 2023 DJEMI. All rights reserved

Impact of Customer Trust on Brand Satisfaction through expected Benefits in the Automobile Sector of NepalOriginal Article

Rashesh Paudel 1, Vaidya Devkota 2, and Niranjan Chen2,*

  1. Quest International College, Pokhara University, Nepal; Rashesh _ Paudel213@gmail.com
  2. Quest International College, Pokhara University, Nepal; meetvaidya2020@gmail.com
  3. Quest International College, Pokhara University, Nepal; Niranjan239@gmail.com

*             Correspondence: Niranjan239@gmail.com

Abstract: A customer is said to be satisfied with a brand when their perception of the brand’s performance is consistent with the brand’s actual performance. The consumer is said to be satisfied with the brand when the customer’s perception of the brand’s performance coincides with the brand’s actual performance. Customers who leave your business happy are more likely to do business with you again. This results in more people speaking positively about your business. It is more beneficial to a company’s bottom line to keep an existing customer than to go out and find a new one. Customers who are happy with the services they receive drive up sales and improve the reputation of the brand. The level of engagement that a company has with its customers is a primary factor in marketing strategy, and numerous resources are utilized to boost brand equity. This study has identified the impact of expected utility on brand satisfaction through customer participation & customer trust in the automotive sector of Nepal. The overall design of the research consists of surveys on relevant literature, primary data, and analysis. This study employed a questionnaire and a structural equation, with the methodology being modeled using Adanco 2.0. Research findings shed light on the complexity of brand equity created by the dynamic interaction between brands and consumers. Customers would be more engaged in brand life if brands developed a structured approach through all measures in our system to explicitly explain the benefits of engagement to them. The research’s findings may also help managers recognize the value of techniques that encourage interaction. The outcome of the research will certainly identify the impact of expected benefits on brand satisfaction through customer engagement & customer trust in the automotive sector of Nepal. It is, in most cases, useful for the corporate sector, the international community, customers, and governments.

Keywords: Expected Benefits, Brand Satisfaction, Customer Participation & Trust


Brand satisfaction means the match between the customer’s perceived performance and the brand’s actual performance. When the brand’s perceived performance matches the actual performance, the customer is satisfied. Satisfied customers are likely to buy from you again. This increases positive word of mouth. Retaining a customer is more cost-effective than acquiring a new customer. Satisfied customers increase sales and enhance the brand’s reputation [1]. Customer engagement is a driver of marketing practice, and many resources are used to increase brand equity [2]. Many companies, such as Audi, BMW, Toyota, and Unilever, have learned from this and have taken many actions through customer participation [3]. The level of involvement of a customer has been shown to have a positive effect on that customer’s level of satisfaction as well as their perception of having obtained higher-value services [4]. Managers are under the impression that using consumer engagement may result in a delayed payout due to the rapid increase in demand and the consequences that will follow. Building an inviting organizational climate for consumer engagement and analyzing the results of these connections (i.e., brand satisfaction, future purchase intentions, and brand loyalty) can be challenging. The difficulty lies in building an inviting organizational climate for consumer engagement. In point of fact, getting feedback from customers and providing effective solutions to problems raised by clients continues to be a challenge [5]. Brands are everywhere, and it’s easy to see how important they are to the overall success of marketing efforts. A consumer can expect a certain level of quality and happiness from a product if the brand is well-known. Strong brands should ultimately result in larger sales flows [7] because they enhance the value of the products they represent [6] and establish the image of the company that produces those goods. Previous research investigated customers’ preferences regarding online versus offline interactions [8, 9], customer satisfaction and loyalty in online versus offline settings [10], and customer engagement in virtual brand communities [11]. There is no correlation between the customer’s past actions and their level of satisfaction with the brand [11]. The influence of expected utility on brand satisfaction in Nepal’s automotive industry has never before been investigated by any academic researcher. The results of this study demonstrate that customer participation is directly correlated to levels of brand satisfaction.


Expected utility, achieved through psychological, social-integrative, and indulgent benefits, is connected with the capability to increase security and status, build status, and self-knowledge [12]. Systems that increase expected utility have frequently been used by managers in order to captivate the devotion of customers and to increase the one-of-a-kind meaning that results from using managers or items. As a result, it is anticipated that expected utility will contribute to favorable outcomes associated with customer engagement [13]. Therefore, expected utility, also known as the prospect of a gain (whether it be happiness, financial, emotional, or sentimental), is a significant operator for customer engagement because of its ability to support brand energy and increase interface. Therefore, higher stages of expected utility are discovered with the participation of the customer [14]. When a rapid customer-company relationship is established, what is known as “participation in brand communities” can be said to exist between an organization and its clientele [15]. Consumer participation, for instance, has the potential to close the gap between a company’s brand promises (including its vision, culture, and image) and the expectations of its stakeholders [16]. This event has been analyzed through the prism of service-dominant logic (S-DL) [17] due to the fundamental shifts in the customer role that emerge as a result of leveraging consumer involvement as an operational element in value production. There appears to be a rise in the level of involvement of customers in the creation of new products and services [18]. This means that the interaction between a company and its customers is no longer viewed as a discrete, time-bound segment but rather as an ongoing process that results in advantageous outcomes. In this sense, businesses have moved away from producing goods for their customers and towards collaborating with those customers [19]. [20] Satisfaction is a complicated concept because it is influenced not only by the consumer’s past, characteristics, and anticipations but also by other stimuli, such as the ease of transaction, the expertise of the sales staff, the variety of available locations, and the availability of special offers. Customer loyalty indicates a commitment to a particular brand rather than to a specific product or service. Customers are more likely to remain loyal to a brand if the performance of that brand is consistent with the performance that they have come to expect from that brand [21]. The customer’s experience with the brand has a positive impact on both the equity of the brand and satisfaction with the brand [22]. The greater the importance a customer places on a supplier’s association commitment, the more faith the customer has in the supplier’s ability to uphold the terms of a contract [23]. The link between a consumer’s level of involvement and participation is stronger when the consumer is in a state of trust [24]. Customer belief is a psychological condition in which a person decides to believe the actions of others and disregard potential hazards [25]. Customer belief can be defined as an individual’s decision to believe the actions of others. There are many different aspects that contribute to the conversion of consumer trust and loyalty through relationship exchange [26].

H1: Expected benefits positively influence customer participation.

H2: Customer trust has an effect on customer participation

H3: Customer participation leads to Brand satisfaction

Figure 01: Conceptual Model

Figure 1 represents the conceptual model adopted and amended. It shows that Expected benefits have a positive impact on Customer participation. Customer trust has a positive impact on customer trust, and Customer participation has a positive impact on Brand satisfaction. Table 2 shows the hypothesis that has been studied and tested in this study.


The research collected data on customer participation, customer trust, brand satisfaction, and expected benefits by using primary data. The setting for the collection of data was Nepal. The population selected for data collection was Automobile owners. We coded the variable as CT for customer trust, BS for brand satisfaction, EB for expected benefits, and CP for customer participation. The questionnaire contained 20 questions. There were 5 questions to describe each variable. The platform for data collection was Google form. The questionnaire was sent to 150 respondents via Email, WhatsApp, and Facebook. To obtain the results, data was run on Adanco 2.0. The duration to hold the research was about 4 months. We measured the correlation coefficient among variables. Also, we measured the effect size by using the reliability of scales suggested by [27]. We measured Cronbach’s alpha (α), Jöreskog’s rho (ρc), Dijkstra-Henseler’s rho (ρA).


Figure 02: Conceptual Model results

The construct operationalization defines that customer trust predefined reliability is 1.0000 and predefined reliability for expected benefits, customer participation [28], and brand satisfaction is also 1.0000.

Table 01: Construct Operationalization

The Dijkstra-rho Henseler’s (A), Jöreskog’s rho (c), and Cronbach’s alpha  for customer trust are reliable on anticipated advantages, and customer involvement and brand happiness are 95 percent. Expected benefits and customer participation had a substantial association. Customers’ engagement was related to the predicted advantages in a positive way. As seen in Table 02, predicted advantages have a positive impact on consumer engagement.

Table 02: Construct Reliability

The average variance extracted (AVE) for customer trust, expected benefits, customer participation, and brand satisfaction are 0.6414, 0.6530, 0.5775, and 0.7001, respectively, indicating that Customer Trust has an impact on customer participation.

Table 03: Convergent Validity

The convergent reliability has been assessed, as shown in Table # 04 by Fornell-Larcker Criterion.

Table 04: Discriminant Validity: Fornell-Larcker Criterion

The coefficient of determination (R2) measures the amount of variation explained by independent variables by an endogenous variable [29]. R2 values ranging from 0 to 1 are possible. Table 05 displays the R2 values from recent studies.

Table 05: Coefficient of determination (R2)

The path coefficients, as in Table 06, are standardized regression coefficients [30]. Their values are based on the quantification of the impact of an independent variable on a dependent variable.

Table 06: Path Coefficient

The sum of the individual direct and indirect effects is the entire influence (effect) of one variable on another. If the independent variable is raised by one standard deviation [31], the amount of the entire effect is described as the “rise in the dependent variable.” (See Table 07)

Table 07: Total Effects

The correlation between measurements of the same construct has been shown in Table 08.

Table 08: Inter-Construct Correlations

Table 09 is displaying the results of hypothesis testing by examining the values of path coefficients and T-tests and defining the significance levels [32]. The test was used to decide which hypotheses were accepted and which were rejected based on the data collected throughout the investigation.

Table 09: Hypothesis testing


Customer participation leads to brand satisfaction for customer participation by (β= 0.1242), while Cohen’s= 0.0135 [33], for customer participation on expected utility, is (β= 0.7362), while Cohen’s= 1.1830, as we see that all effects are 95%. Customer engagement effects are a critical element in marketers’ social media relationships with consumers [34]. The growing diversity of perspectives represented in social media investments [35] lends credence to the significance of the findings presented here. The difficulty of creating brand equity through dynamic interactions between consumers and brands is highlighted by our findings, which shed light on this topic. If brands developed a structured approach across all of the measures in our system to explicitly explain the benefits of engagement to their customers, then customers would become more engaged in the life of the brand. Our findings may also assist managers in understanding the importance of employing strategies that promote interaction. This would increase their customer base as well as the return on investment of the partnership marketing initiatives they undertake. Participation from customers is a potent instrument that can be of assistance to businesses in achieving significant results. Businesses that want to raise their customers’ awareness of their brand should make an investment in the development of customer engagement methods that result in shared learning. Conversations amongst a group of people, with the goal of identifying recurring themes and resolving issues, are one way this can be accomplished. The bad news is that efficacy varies, which means that managers need to evaluate the levels of collectivism, different typologies of brand success, and qualities of client involvement. We suggest that in order for these strategies to be more successful, the emphasis should be placed on co-creation activities that give consumers and target customers in countries with a strong sense of collectivism the idea that the product or service they are purchasing has value. As a result, we are going to accept our null hypothesis, which states that customer engagement does not result in satisfied customers. This research paper will make a contribution to today’s world. However, some limitations are always present. First, this study used a convenient sample that may influence our results. This research was specifically relevant to the market domain, not to other domains such as psychology, IT, etc. Secondly, the results are based on the assumption that the selected respondents responsibly gave correct information.


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Publication History

Published: January 01, 2023




Rashesh Paudel, Vaidya Devkota, & Niranjan Chen (2023). Impact of customer trust on brand satisfaction through expected benefits in the automobile sector of Nepal. Dinkum Journal of Economics and Managerial Innovations, 2(01):49-57.


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