Quality as the cornerstone in hybrid business models: building brands and shaping consumer behaviour

Purpose This research explores how perceived product and service quality affect brand equity within hybrid business models, particularly in the automotive industry. Additionally, it examines how brand equity influences consumer behavioural intentions, emphasising the mediating role of consumer satisfaction. Design/methodology/approach A quantitative approach was utilized, employing a survey to gather data from a diverse sample of automobile consumers in India’s National Capital Region. PLS-SEM was applied to analyse the relationships among the constructs. Findings The results indicated that product and service quality significantly enhanced brand equity, with service quality exerting a more substantial influence. Furthermore, brand equity positively influenced consumer behavioural intentions, such as repurchase intentions and word-of-mouth referrals, with consumer satisfaction as a partial mediator in this relationship. Originality/value This research pioneers a fresh perspective by delving into hybrid business models that integrate products and services, providing a comprehensive understanding of how perceived quality builds brand equity, which in turn drives favourable consumer behaviours. Notably, the study integrates three theoretical frameworks, consumer empowerment, the compensatory effect and the theory of reasoned action, to offer deeper insights into research on quality, brand management and consumer behaviour within the automotive context.