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researcher’s knowledge, there is very little literature or publication published on the subject of
customer loyalty in the Malaysian telecommunication industry. Globally, there is not much research
on customer loyalty in the telecommunication industry as well. Customer loyalty in the
telecommunication industry is highly more sensitive compared to other industries since customers can
simply migrate from one provider to another.

The ultimate objective of this research is to determine whether trust mediates the relationship between
brand credibility on customer loyalty. Hence the ultimate research question is does trust mediates the
relationship between brand credibility on customer loyalty?

Literature Review
Commitment-Trust Theory (CTT)
Robert M. Morgan and Shelby D. Hunt (1994) implied the CTT theory as the primary mediating
variables within the theory of relationship marketing, on emotional exchanges and engagement and
trust in relationships. The relationship of commitment and trust is the key mediating factor between
five key antecedents (cost of termination of relationships, advantages of relationships, sharing values,
contact, and opportunistic behaviour) and five outcomes (acquiescence, leaving tendency,
collaboration, functional conflict, and ambiguity in decision-making).

According to Dubey et al. (2019), CTT has been adopted for the investigation purposes of a firm’s
international relations, the non-profit sector, IT outsourcing, knowledge sharing, supply chain
management or purchasing. CTT’s core belief is that not only strength but confidence and dedication
that determine the success of relationships (Morgan & Hunt, 1994).

In Commitment-trust Theory (CTT), by establishing a mutual understanding between parties involved
in a partnership, trust and involvement mediate a relational exchange. Acting in an immoral way can
have a detrimental impact on establishing trustworthy relationships because it decreases confidence
and produces negative motives (Agag, 2019). While the effects of trustworthiness on trust were found
directly and indirectly through brand credibility (Ngo et al., 2020).

Berry and Parasuraman (1991, p.139) confirmed that mutual commitment is the foundation of all
relationships. It has to do with the process of customers becoming loyal to particular brands, which
was extensively discussed. Initially, loyalty was defined as the behaviour of repurchasing the same
product or service.

Figure 1. Commitment-Trust Theory
Source: Morgan & Hunt, 1994

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