Does product innovation impact brand image?

: Exploring the role of product differentiation and brand trust in the European fintech ecosystem

Abstract

This thesis aims to explore the relationship between product innovation, product differentiation, and brand trust as they relate to brand image within the European fintech landscape. Despite a wealth of research on brand image, little has focused specifically on these four interrelated factors in the fintech domain. By employing a quantitative approach via an online survey, the study leverages primary data collection to investigate these relationships. Statistical techniques
including descriptive statistics, regression analyses and mediation and moderation analyses were implemented to test the proposed hypotheses. The results indicate strong empirical support for most of the hypotheses. Specifically, product innovation positively impacts brand image, and brand trust serves as a mediator between product innovation and brand image. On the contrary, product differentiation did not demonstrate a moderating effect on the relationship between product innovation and brand trust as initially hypothesized. Nonetheless this exception, the model fits were statistically significant, emphasizing the pivotal roles of these variables in influencing brand perception. Managerial implications suggest fintech companies, and neobanks in particular, to invest in product innovation and brand trust to attract and retain
customers. Key recommendations include enhancing user experience, strengthening security features, and aligning service offerings with target consumer preferences which in this study highlighted affordability and convenience. Overall, this paper contributes to the limited body of empirical research on the interplay between product innovation, product differentiation,
brand trust, and brand image, specifically in the evolving fintech sector.

Date of Award	27 Oct 2023
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Paulo Romeiro (Supervisor)