The effects of trust and peer influence on corporate brand-Consumer relationships and consumer loyalty

Drawing on relational tie theory and theory of trust, this study examines the role of affective and cognitive trust in mediating the relationship between corporate brands and consumers, and in loyalty towards corporate brands of national dairy products in China. The study also investigates the moderating effect of peer influence on corporate brand and consumer relationships and the two trust types. Using survey data from 600 consumers, the study shows that while cognitive trust mediates the relationships between certain corporate brand and consumer constructs, including corporate brand competence and corporate brand communication and loyalty, affective trust mediates the effect of loyalty on corporate brand and consumer relationship constructs, including corporate brand communication, corporate brand liking and corporate brand similarity. Peer influence is found only to have a positive moderating effect on corporate brand communication regarding affective trust.