Brand Image and Trust as Drivers of Brand Loyalty: Perspective from the Automotive Industry

In an era of globalization and digitalization, the automotive industry faces fierce competition that demands focus on brand image and trust to secure customer loyalty. This study introduces a novel framework integrating social exchange theory with empirical evidence from Indonesia’s automotive sector. Unlike previous studies that focus on individual relationships, this research provides comprehensive insights into the sequential impact of brand image on trust and, subsequently, on loyalty, offering managerial implications for sustaining competitive advantage in a rapidly evolving market. Data were collected from 126 respondents via an online survey and analyzed using partial least squares–structural equation modeling (PLS-SEM). Findings reveal that brand trust significantly boosts loyalty (β = 0.694, p = 0.000), while brand image influences loyalty directly (β = 0.276, p = 0.000) and indirectly by enhancing trust (β = 0.686, p = 0.000). The results suggest that although a positive brand image attracts consumers, cultivating trust is essential for long-term loyalty. Managerial implications urge Indonesian car manufacturers to improve product quality, transparency, after-sales services, CSR, and digital engagement. Limitations include a cross-sectional design and a geographically limited sample, suggesting future research should employ longitudinal and qualitative methods.