Trustworthy brand signals, price fairness and organic food restaurant brand loyalty

Abstract

Purpose - This research aims to examine the influence of brand signals (transparency, innovativeness and reputation) on brand trust and price fairness toward organic food restaurant brand. Design/methodology/approach - The empirical data were gathered with the survey instrument from respondents who had previously visited organic food restaurant. The formulated hypotheses were analyzed with structural equation modeling. Findings - The collected data demonstrated the positive effect of brand signals on brand trust and price fairness. Trust in organic food restaurant brand was found to positively impact both price fairness and brand loyalty. Additionally, the results provided evidence of the positive linkage between price fairness and brand loyalty. Among brand signals, brand transparency exerted the greatest impact on brand trust and price fairness. The findings also indicated the significant indirect linkage of brand signals on restaurant brand loyalty through brand trust and price fairness. Originality/value - Through the lens of signaling theory and equity theory, this study provides novel insights into how brand signals contribute to brand trust, price fairness and organic food restaurant brand loyalty. The managerial implications for implementing brand strategies for organic food restaurants were discussed.