The Role of Brand Trust in Customer Retention through Value, Personalization, e-WOM, and Social Media

Abstract

This study investigates the roles of perceived value, service personalization, electronic word of mouth (e-WOM), and social media marketing (SMM) in enhancing customer retention, with brand trust as an intervening variable, within the context of a private tutoring institution. The research is motivated by increasing competition in the education service sector and the growing importance of digital information in parental decision-making. A quantitative approach was employed using a survey of 200 parents whose children had enrolled in tutoring programs during 2023–2025. Data were analyzed using Structural Equation Modeling (SEM) with AMOS to test both the measurement and structural models. The results reveal that perceived value has a significant positive effect on customer retention and brand trust, indicating that parents are more likely to maintain long-term relationships when they perceive a fair balance between costs and benefits. Service personalization, e-WOM, and social media marketing were found to significantly strengthen brand trust. However, social media marketing does not directly influence customer retention, suggesting that its impact operates indirectly through brand trust. Furthermore, brand trust was confirmed as a significant determinant of customer retention, highlighting its central role in sustaining long-term relationships in education services. Overall, the findings demonstrate that customer retention in tutoring services is primarily driven by value-based and trust-based mechanisms rather than direct promotional efforts. This study contributes to the literature by clarifying the mediating role of brand trust and offers practical insights for education service providers seeking to enhance retention through meaningful value creation and relationship-building strategies.