Product involvement, price perceptions, and brand loyalty

2015 ◽  
Vol 24 (4) ◽  
pp. 349-364 ◽  
Author(s):  
Alcina G. Ferreira ◽  
Filipe J. Coelho

Purpose – This paper aims to contribute to the literature on brand loyalty by illustrating the mechanisms through which product involvement influences brand loyalty. In doing so, the study is original in considering the mediating role of the multidimensional price perceptions’ construct. Design/methodology/approach – Two thousand questionnaires were distributed in two shopping malls, yielding a sample of 535 consumers, covering eight different grocery products. To test the hypothesized model, the authors relied on structural equation modelling. Findings – Product involvement influences on brand loyalty are partially mediated by price perceptions. This is a novel finding. Moreover, product involvement relates positively to six price perceptions, and this is also original. As expected, value consciousness and sale proneness are detrimental to brand loyalty, whereas price – quality schema contributes to it. Unexpectedly, however, price consciousness, sale proneness and price mavenism are positively related to loyalty. Practical implications – Managers can improve brand loyalty by increasing consumers’ product involvement, by reducing the reliance on a value-for-money orientation and on non-coupon promotions and by focusing on lower or higher prices and on coupon promotions and emphasizing a price – quality association. Originality/value – The product involvement/brand loyalty relationship has been characterized by mixed findings. This paper contributes to this debate by clarifying the mechanisms through which involvement relates to loyalty. In doing this, this paper also innovates by investigating the relationship between involvement and the multidimensional price perceptions’ construct. In this process, this paper also inquires how seven price perceptions relate to brand loyalty, with novel findings emerging.

2016 ◽  
Vol 25 (7) ◽  
pp. 629-641 ◽  
Author(s):  
Mobin Fatma ◽  
Imran Khan ◽  
Zillur Rahman

Purpose The aim of this study is to investigate the influence of two types of corporate associations – corporate ability (CA) and corporate social responsibility (CSR) – on consumer brand loyalty in retail banks in India. Design/methodology/approach A survey on 489 banking consumers was carried out. To achieve research objectives, test hypotheses and analyze data, structural equation modeling was used. Findings The findings show that CA and CSR associations were found to have positive and indirect influences on consumer brand loyalty through brand identifications. This indicates that the process of corporate association transforming into loyalty is much more complicated, and there are other factors influencing this process, making brand identification necessary for achieving customer brand loyalty. Research limitations/implications The results presented in this study have important managerial implications for banking companies in India. The findings demonstrate the importance of CA and CSR associations in the present business scenario and highlight the need to successfully implement them in management policies. Originality/value This study contributes to the existing body of literature by highlighting the influence of brand identification on brand loyalty through affective commitment and satisfaction.


2019 ◽  
Vol 21 (2) ◽  
pp. 233-253 ◽  
Author(s):  
Nagaraj Samala ◽  
Bharath Shashanka Katkam

Purpose Millennial generation is fashion inclined, interactive and informative social beings. They are very conscious of the brands they wear. Millennia seek, share, inform and exchange fashion brand-related information on social networking sites (SNS). Marketers are subsequently engaging the young prospects and customers to keep up or improve enthusiasm and participation. The study attempts to investigate the role of customer-brand engagement (CBE) of millennials with fashion brands on SNS. The study simultaneously tests the moderating role of involvement levels affecting participation and CBE leading to brand loyalty. Design/methodology/approach The study followed a purposive sample by collecting 466 respondents from the graduate students of a university. The study adopted structural equation modelling (SEM) and Hayes process macros in SPSS 20.0 to test the moderated-mediation model. Findings The study confirms the mediating role of CBE in the relationship between participation and brand loyalty. Different degrees of involvement moderate the mediating role of CBE. Higher levels of involvement enhance the positive effect of participation on CBE. Originality/value The study is first of its kind to investigate the role of CBE and involvement among the millennial group. It also contributes to the related theories like service-dominant logic, social exchange theory and consumer culture theory regarding a unique population group, which is promising and profitable.


2018 ◽  
Vol 46 (8) ◽  
pp. 764-779 ◽  
Author(s):  
John Paul Basewe Kosiba ◽  
Henry Boateng ◽  
Abednego Feehi Okoe Amartey ◽  
Robert Owusu Boakye ◽  
Robert Hinson

PurposeIn recent times, there has been a growing research interest in customer engagement; however, there is a paucity of empirical evidence on the drivers and outcomes of customer engagement such as brand loyalty. Furthermore, the customer engagement and brand loyalty literature have paid little attention to trustworthiness, even though it has the potential of explaining customer engagement, brand loyalty and their relationships. Consequently, the purpose of this paper is to ascertain the drivers of customer engagement and its relationship with brand loyalty in the context of retail banking in Ghana.Design/methodology/approachThe authors employed the survey research design. The authors collected data from retail banking customers in Ghana using the intercept approach. There were 385 respondents. The authors analysed the data using the structural equation modelling approach.FindingsThe results show that trustworthiness drives customer engagement which results in brand loyalty. The findings reveal that trustworthiness is defined through integrity, benevolence and ability while customer engagement is defined via emotional engagement, cognitive engagement and behavioural engagement.Originality/valueThis study examines the impact of trustworthiness on customer engagement and brand loyalty. It shows the mediating role of customer engagement in the relationship between trustworthiness and brand loyalty.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ahmed Rageh Ismail ◽  
Bang Nguyen ◽  
Junsong Chen ◽  
T.C. Melewar ◽  
Bahtiar Mohamad

Purpose This study aims to examine the relationship between brand engagement in self-concept (BESC), value consciousness (VC) and brand loyalty among Generation Z consumers. In addition, the study aims to segment the Generation Z consumers based on BESC and VC and examine the differences between the segments. Design/methodology/approach A self-administered questionnaire was developed and administered to a sample of 346 undergraduate students in Malaysia. The hypothesized structural models are tested using partial least squares structural equation modeling. The study also uses cluster analysis to segment the Generation Z consumers. Findings The results reveal that among Generation Z consumers both BESC and VC have a positive effect on brand loyalty. Additionally, the mediation analysis established that BESC plays a mediating role in the relationship between VC and brand loyalty. The study also identified four consumer groups – attentive group, dedicated group, prospective group and switchers group. Furthermore, consumer classification according to BESC can be used by marketers and managers in marketing strategy development. Originality/value The study has originality and value in developing and testing a new model linking BESC with VC and brand loyalty. Further, market segmentation on the basis of BESC and VC has been rarely studied. Even less, has been studied among Generation Z consumers and this study fills this important gap.


2016 ◽  
Vol 34 (1) ◽  
pp. 117-136 ◽  
Author(s):  
Rajat Roy ◽  
Fazlul K. Rabbanee ◽  
Piyush Sharma

Purpose – The purpose of this paper is to explore the mediating role of internal reference price (IRP) in a pay-what-you-want (PWYW) price setting. Specifically, it examines the effects of altruism, social desirability and price consciousness as the antecedents of IRP and consumers’ willingness to pay (WTP), future purchase intention and attitude toward the seller as the outcomes of IRP. Design/methodology/approach – The data for the study were collected from 272 respondents through a structured survey and analyzed through structural equation modeling technique using AMOS 22.0. Findings – Altruism and social desirability positively influence IRP whereas price consciousness influences IRP negatively. IRP mediates the effects of altruism, social desirability and price consciousness on WTP, future purchase intention and attitude toward the seller. Research limitations/implications – PWYW pricing strategy can help attract consumers with self-less characteristics or a desire to behave in a socially appropriate manner but not those who are highly price conscious as reflected by the differences in the way in which their IRPs influence their WTP, future purchase intention and attitude toward the seller. Originality/value – This paper introduces a parsimonious framework to explain how three consumer characteristics influence consumers’ pricing decisions in PWYW context. The finding that the effects of antecedent variables on WTP, attitude and future purchase intention are mediated by IRP provides new insights that have not been explored earlier.


2019 ◽  
Vol 31 (3) ◽  
pp. 670-690 ◽  
Author(s):  
Muhammad Kashif Javed ◽  
Ma Degong ◽  
Talat Qadeer

Purpose Most business-related studies on ethics focus on consumers in developed western economies but ignore developing economies. Therefore, to fill this void in the literature and address the concerns of prior studies, the purpose of this paper is to examine the ethical perceptions of Chinese consumers as an example of effective and efficient management of company/brand strategies in an economy experiencing rapid socioeconomic growth. Design/methodology/approach This study examines 328 Chinese consumers’ purchase intentions based on their ethical perceptions toward Apple and P&G through mediating (i.e. consumer–corporate identification (CCI) and brand trust) and moderating (i.e. consumer gender, age, education and residence) effects. Structural equation modeling is used to analyze the constructs and overall model. Findings The ethical perceptions of consumers translate into purchase intentions, both at the corporate and product brand levels. Similarly, a significant direct relationship between CCI and brand trust reveals that corporate-level ethical identification is a trivial matter to customers, although these perceptions do apply to product brands under a corporate umbrella. Furthermore, to identify target groups of Chinese consumers who are receptive to ethical appeals, moderating variables were found to be useful. Originality/value The results confirm that the mediating role of CCI is more influential in the context of Chinese consumers’ ethical perceptions, followed by brand trust. In relation to demographics, ethical perceptions affect CCI and brand trust more positively in females and highly educated consumers in China. Similarly, the relationship between consumers’ ethical perception and their trust in brand is revealed more influential in urban residents than they do in rural. This broadens the applications and contexts of this research model. The results provide managerial guidance on enhancing potential ethical perceptions.


2017 ◽  
Vol 51 (2) ◽  
pp. 367-390 ◽  
Author(s):  
Elaine Wallace ◽  
Isabel Buil ◽  
Leslie de Chernatony

Purpose Brand “Likes” on Facebook facilitate self-expression, forming part of consumers’ virtual selves. Yet, consumers’ brand “Likes” may bear little resemblance to their material realities. This paper aims to test similarities of brand image with self-image for Facebook “Likes” to determine whether self-congruence with a “Liked” brand leads to positive offline brand outcomes. It also investigates whether consumers’ perceptions about their Facebook social relations influence self-congruent brand “Likes”. Design/methodology/approach A large-scale survey was conducted of regular Facebook users who “Liked” brands. Data from 438 respondents was analysed and hypotheses tested using structural equation modeling. Findings Empirical results show that the perceived self-congruence with a “Liked” brand increases with social tie strength. Perceived social tie strength is informed by perceived attitude homophily. When the perceived self-congruence with a “Liked” brand is higher, brand love and word of mouth (WOM) are enhanced. Consumers also have greater brand loyalty and offer more WOM when brands are loved. Research limitations/implications Findings demonstrate the influence of consumers’ cognitive network on “Likes” and brand outcomes. Further replication would enhance generalisability. Future research should use a wider sample and investigate other variables. Practical implications Findings support managers seeking to grow and analyse Facebook “Likes” by providing insights into brand loyalty, brand love and WOM for “Liked” brands. Originality/value The paper addresses the dearth of research exploring how consumers’ perceptions of their Facebook network influence their online brand behaviour and how perceived self-congruence with a “Liked” brand relates to brand outcomes.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohd Ahmad Al-Hawari ◽  
Shaker Bani-Melhem ◽  
Faridahwati Mohd. Shamsudin

Purpose This study aims to build on the trait activation and interactionist perspective theories to investigate the effect of frontline employees’ (FLEs) willingness to take risks on hotel guest loyalty by assessing the mediating role of their innovative behaviors. It also examines whether decentralization strengthens the positive impact of willingness to take risks on innovative behavior and, subsequently, customer loyalty. Design/methodology/approach The authors collected multilevel data from various sources – hotel FLEs (n = 183), hotel operation managers (n = 46) and hotel guests/customers (n = 266) – from five-star hotels operating in Dubai. Structural equation modeling and PROCESS macro (version 3.5) were used to analyze the data. Findings The findings showed that willingness to take risks indirectly (via innovative behaviors) affects guest/customer loyalty positively. This effect is strengthened when the hotel is decentralized. Practical implications This study provides insight into how hotel managers can foster customer loyalty. More specifically, they can do so by establishing employees’ innovative behaviors triggered by employees’ positive personality traits and by giving employees more autonomy. Originality/value The present study addresses recent calls to investigate the positive impact of FLEs’ personality traits, attitudes and behaviors on customer loyalty.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Purvendu Sharma

PurposeThe present research aims to introduce and understand the promising nature of destination evangelism in the context of social media-based tourism communities (SMTCs). Further, factors that influence evangelism and information-seeking behaviors on SMTCs are examined.Design/methodology/approachA conceptual model is developed that features an interplay of destination distinctiveness, destination evangelism, travel commitment and information-seeking engagement. Data were collected from 215 active users of SMTCs and analyzed using structural equation models.FindingsThe research findings indicate that destination distinctiveness and information-seeking positively lead to destination evangelism. Information-seeking is found to mediate the relationship between (1) destination evangelism and travel commitment and (2) destination evangelism and distinctiveness.Research limitations/implicationsThe research offers meaningful insights into exploring constituents of destination evangelism. The research also understands and highlights the critical role of information-seeking engagement about distinct destinations.Practical implicationsThis research highlights key areas to build, improve and inspire destination evangelism on SMTCs.Originality/valueThis study offers a fresh contribution to tourism literature by investigating destination evangelism and its drivers. This is explained by closely uniting vital research streams of evangelism, tourism and engagement. It further highlights the dual mediating role of information seeking, suggesting that these engagements are critical to evangelizing destinations.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Zahraa Sameer Sajwani ◽  
Joe Hazzam ◽  
Abdelmounaim Lahrech ◽  
Muna Alnuaimi

PurposeThe purpose of the study is to investigate the role of the strategy tripod premises, mediated by future foresight and its effect on merger effectiveness in the higher education industry.Design/methodology/approachA quantitative survey method was implemented, with the data provided by senior managers of 14 universities that went through a merger from the years 2013–2016. The proposed model was tested using partial least squares (PLS) of structural equation modeling (SEM).FindingsThe results indicate that government support, competitive intensity and knowledge creation capability relate positivity to merger effectiveness, and these relationships are mediated by future foresight competence.Originality/valueThe study provides a better understanding of merger effectiveness in the higher education industry by identifying the role of future foresight competence in the application of strategy tripod and its contribution on merger effectiveness. Results indicate that future foresight competence contributes to the merger effectiveness and enables the effective implementation of the strategy tripod dimensions in higher education mergers.


Sign in / Sign up

Export Citation Format

Share Document