Loyalty programs,loyalty engagement and customer engagement with the company brand: Consumer-centric behavioral psychology insights from three industries

Firms make large investments in loyalty programs (LPs) to build customer relationships with customer loyalty as one of their primary goals. Despite the popularity of LPs, their effectiveness is questioned and the subject of academic debates in relation to outcomes such as profitability. Moreover, extant research has not investigated if customers engage with LPs through LP perceived value and how LP engagement improves LP loyalty, brand loyalty, and customer engagement (CE) with the company brand. This study examines, from a consumer-centric behavioral perspective, LP engagement (LPE) behavior, and how LPE behavior impacts brand and LP loyalty, as well as CE. We introduce LPE behavior, a relatively new concept, in the form of a multi-dimensional set of hierarchically-ordered dimensions. We show a differentiated view of the relationship between the antecedents of brand loyalty as well as LP loyalty and CE. External, convergent and discriminant validity are confirmed by testing our model with a representative sample (n = 593) of the U.S. LP population with participants being members of either a grocery retail chain, department store chain, or airline frequent flyer LP. We show that perceived LP value engages customers with LPs. Subsequently, LPE behavior improves LP loyalty and brand loyalty as well as CE with the company brand.     

Involvement, satisfaction, and brand loyalty in a small business services setting

Considerable resources are expended annually on building business brands, yet the literature is virtually silent on brand loyalty in a business setting. This study examines the relationship between attitudinal loyalty and behavioral loyalty in a business services context, and attempts to identify two key antecedents of loyalty in this context. In particular, little is known about small businesses as customers, despite their significant contribution to the economies of developed nations. A longitudinal design is implemented, and data are captured on both attitudinal loyalty and subsequent loyalty behaviors (i.e., actual purchase behavior). The findings demonstrate the value of conceptualizing and measuring both attitudinal and behavioral components of brand loyalty. Specifically, the results indicate that attitudinal loyalty mediates the effects of the antecedents studied (category involvement and purchase satisfaction) on behavioral loyalty. Implications for marketing theory and practitioners are discussed, and possible directions for future research are sketched.     

消费者品牌忠诚影响因素实证分析

伴随着激烈的市场竞争,消费者品牌转换行为日趋频繁,迫使企业寻找影响消费者品牌忠诚的关键因素。本文以北京市消费者为研究对象,对消费者品牌忠诚的影响因素进行了实证分析,得出了驱动品牌忠诚的若干因素,以期为企业做出正确的营销决策提供参考。     

Role of customer orientation in an integrative model of brand loyalty in services

This study attempts to model the development of brand loyalty by examining the simultaneous effects of customer orientation, perceived quality, brand associations, and satisfaction on brand loyalty. Data are used from retail banking and discount store retailing services to examine the direct and indirect effects of customer perceptions of customer orientation and quality on brand loyalty. It was found that customer orientation has a direct effect on brand loyalty and indirect effects through customer satisfaction, perceived quality, and brand associations as mediators. Further, perceived quality has a direct effect on brand loyalty as well as an indirect effect with satisfaction as a mediator. The results suggest that effective management of brand loyalty would require tracking of customer perceptions of a firm's customer orientation, quality and brand, in addition to measuring customer satisfaction.     

城市品牌依恋影响机理研究——基于上海、泉州、兰州、岳阳的实证分析

文章从消费者行为视角切入,运用结构方程的定量研究方法,通过"消费者—品牌"关系分析了利益相关者(居民、潜在迁入者、旅游者、投资者等)城市品牌依恋对其城市品牌忠诚的影响机理。实证结果表明,城市品牌个性、城市品牌享乐主义价值、怀旧情感、城市品牌涉入度对利益相关者城市品牌依恋的形成具有直接影响;利益相关者对城市品牌的依恋通过消费者—品牌关系(信任、满意、承诺维度)对其城市品牌忠诚产生显著影响。     

Antecedents and consequences of brand attachment: A literature review and research agenda

Consumers develop powerful connections with brands and they feel a strong bond or attachment to favourite brands that can lead to re-purchase behaviour, reduced price sensitivity and increased customer loyalty. Gaining greater in-depth knowledge of brand attachment offers a powerful means of understanding and facilitates modelling the mechanisms for achieving greater profitability and increased revenue for firms. The purpose of this paper is first to map the antecedents, mediators and consequences of brand attachment; second to provide scholars with a map of prior research as a starting point for future research; and third to offer insights to extend understanding of how consumers relate to and engage with brands. The antecedents to brand attachment are categorized under five headings: brand-related concepts; self-brand connection and connection; congruence and the self; emotional drivers of brand attachment; and service-related concepts. The consequences of brand attachment are categorized as: brand loyalty and switching resistance; purchase intentions and willingness to pay; and word of mouth. The review and future research agenda utilize the Theory, Context, Characteristics, Methodology structure: (T) theory and concepts; (C) context and industry sectors; (C) characteristics (antecedents, mediators and consequences); (M) methods used in prior research. Recommendations focus on: social media marketing; social media marketing influencers and psychological ownership.     

Does attitudinal loyalty influence behavioral loyalty? A theoretical and empirical study

Despite a plethora of studies on brand loyalty spanning over last three decades, the research paradigm is unique in its inability to produce generalizable results. The research suffers from a lack of agreement over the operationalization of the construct of the brand loyalty. Many researchers [e.g., Kahn, B.E., Kalwani, M.U., Morrison, D.G., 1986. Measuring variety seeking and reinforcement behaviors using panel data. Journal of Marketing Research 23, 89–100; Ehrenberg, A.S.C., Goodhardt, G.J., Barwise, P.B., 1990. Double jeopardy revisited. Journal of Marketing 54, 82–91] have defined brand loyalty only from a behavioral perspective. They assumed that repeat purchasing can capture the loyalty of a consumer towards the brand of interest. Other researchers [e.g., Day, G.S., 1969. A two-dimensional concept of brand loyalty. Journal of Advertising Research 9, 29–35; Dick, A.S., Basu, K., 1994. Consumer loyalty: towards an integrated conceptual approach. Journal of the Academy of Marketing Science 22 (2), 99–113; Baldinger, A.L., Rubinson, J., 1996. Brand loyalty: the link between attitude and behavior. Journal of Advertising Research 36 (6), 22–34; Rundle-Thiele, S.R., Bennett, R., 2001. A brand for all seasons: A discussion of loyalty approaches and their applicability for different markets. Journal of Product and Brand Management 10 (1), 25–37; Rundle-Thiele, S.R., 2005. Elaborating customer loyalty: exploring loyalty to wine retailers. Journal of Retailing and Consumer Services 12 (5), 333–344], however, have suggested that attitude should be included along with behavior to define loyalty. In particular, Dick and Basu (1994) were precise in suggesting that a favorable attitude and repeat purchase were required to define loyalty. By viewing loyalty as an attitude–behavior relationship in their framework, Dick and Basu (1994) were able to investigate the concept from a causal perspective thereby permitting the identification of the factors that influence loyalty.Our research extends the idea proposed by Dick and Basu (1994) in two ways. First, we provide a conceptually clear, and an operationally meaningful way of segmenting the market on the basis of attitudes that govern this behavior. To be specific, we offer a unique way to measure attitudinal loyalty. And we use a unique survey data with a large sample of 1800 respondents that includes both behavioral (purchase) patterns and attitudes of the respondents for all major brands of toothpaste, to demonstrate that behavioral loyalty is influenced by attitudinal loyalty across many brands of the toothpaste category. Finally, we propose that a third behavioral pattern—non-user—should be also included along with two known behavioral patterns viz. single user and multiple user. This is because a non-user has the potential to become a consumer in future.     

Does Size Matter? An Examination of Small and Large Web-Based Brand Communities

We investigate the causal relationship between brand community identification, brand affect, community loyalty, brand loyalty, brand evangelism, and community evangelism, developing a structural equation model set within the context of online brand communities for newly hybridized roses. The analysis considers size as a moderator for the relationships between constructs, comparing small and large web-based brand communities. Findings highlight that small communities operate differently from larger ones with regard to numerous aspects, and possess specific strengths and weaknesses. Members of small communities develop higher community loyalty; brand loyalty in small community stems more from community loyalty than from brand affect; small communities engage in word of mouth for the community more than in word of mouth for the brand. Managerial implications are addressed.     

The importance of customer satisfaction in explaining brand and dealer loyalty

The positive influence of customer satisfaction on brand and dealer loyalty is often taken for granted. In this study we attempted to prove whether this relationship really exists. In order to do so we examined the case of an automobile‐dealer network. Three different types of customer satisfaction were distinguished: (a) satisfaction with the car; (b) satisfaction with the sales service and (c) satisfaction with the after‐sales service. It was expected that all three types of satisfaction would have an influence on brand loyalty as well as on dealer loyalty. More specifically, it was expected that satisfaction with the car would be the major determinant of brand loyalty and that satisfaction with the service (both sales‐ and after‐sales service) would be the major determinant of dealer loyalty. Furthermore, a study of the literature revealed that dealer loyalty might also significantly affect brand loyalty.

In the empirical part of the study, customers (n = 416) of different automobile‐dealers of the same brand were asked to fill in a mailed questionnaire. The three different types of customer satisfaction and the intention to buy the same brand of car again, as well as the intention to buy from the same dealer again were measured. The customers were also asked why they would buy the same brand (again) or from the same dealer. In general, the analyses of the results revealed that: customer satisfaction with the car, as well as dealer loyalty are major determinants of brand loyalty; customer satisfaction with the sales service as well as with the after‐sales service are major determinants of dealer loyalty and dealer loyalty is an intervening variable in the relation between satisfaction and brand loyalty. Furthermore, it was found that the strength of the relationship between different types of satisfaction and loyalty indicators differs markedly between various market segments (private/business use of car and new/used car buyers). Several marketing implications are presented. A distinction may be made between the implications for the manufacturer of the physical product and the automobile dealer rendering the service.     

调节定向在品牌忠诚动态形成过程中的作用

现有基于消费者—品牌关系对品牌忠诚影响因素的实证研究发现,品牌信任和品牌情感是品牌忠诚的决定因素。尽管很多学者认为应该从动态的视角认识忠诚的概念,却没有随着时间推移来研究消费者品牌忠诚的发展过程的文献。为了弥补现有营销文献中这一理论的不足,文章提供了一个关于品牌情感和品牌信任同时影响品牌忠诚形成过程的动态研究。通过一个纵向情境模拟实验研究发现随着时间的推移,品牌信任和品牌情感在品牌忠诚的形成过程中作用在不断变化,并且消费者自我调节定向与品牌信任或品牌情感的的匹配会增强其在品牌忠诚形成过程中的作用。     

Factors that influence manufacturer and store brand behavioral loyalty

This study examines the factors that are linked to consumer goods brands having unusually high or low behavioral loyalty, after controlling for the association between brand size and loyalty that occurs due to the ‘double jeopardy’ effect. Behavioral, or repeat-purchase loyalty is measured as the brand's average share of category requirements (in volume) among its buyers over a 12-month period. We examine a range of factors that theory or past evidence suggests are associated with higher or lower behavioral loyalty, including brand type (store brand/manufacturer brand), price level, promotion intensity, as well as average brand volume per occasion and pack size. Using extensive US panel purchasing data, we find that store brands exhibit relatively higher behavioral loyalty than manufacturer brands. We explain the theory behind this result. We also find that the brand's average pack size and volume bought per occasion has a markedly positive association with behavioral loyalty. Finally, we find that the effect of low price on excess loyalty is moderated via a positive association with average volume purchase per occasion. These findings add to the body of knowledge relating to patterns in behavioral brand loyalty for both manufacturer and store brands, as well as the marketing-mix factors that influence it.     

The influence of sport sponsorship on brand equity and purchase behavior

Abstract

Drawing on Aaker’s brand equity model and Keller’s brand engagement concept and building on the sponsorship between a professional basketball club and a software company, this study examined how sport sponsorship affects brand equity and purchase behavior of the sponsor’s product. Data from 222 survey respondents were collected and analyzed using structural equation modeling techniques. The results provided evidence that perceived quality and brand engagement impact brand loyalty and purchase behavior of fans toward the sponsor’s product. Perceived fit between sponsor and sponsee and team identification were found to influence significantly sponsor’s brand equity constructs. The study extends Aaker’s model in the sport sponsorship context and highlights the influential role of perceived quality and brand engagement on driving sport team fans to form brand loyalty and purchase sponsor’s product.     

Consumers’ relationships with brands and brand communities – The multifaceted roles of identification and satisfaction

This study integrates consumer-brand identification and customer satisfaction as core relationship drivers to study their interrelationships as well as the effects on customer loyalty and word-of-mouth communication. Considering multiple interacting targets of identification in brand communities, the empirical study unfolds the multifaceted, context-specific relevance of identification and satisfaction: While the effect of identification on brand loyalty is mediated by customer satisfaction, satisfaction has no significant effect on community loyalty. Moreover, brand communities are particularly useful for gaining new customers, whereas no increase in brand loyalty could be found. Managers are generally advised to specify constructs of interest related to different relevant targets of identification.     

Cigarette brand loyalty and purchase patterns: An examination using US consumer panel data

This study analyzes data on cigarette purchasing using an extensive panel dataset. Major findings are: (1) cigarette purchasing in this market exhibits a reverse-J, or NBD (Negative Binomial Distribution)-like shape: many infrequent buyers and fewer frequent buyers; (2) Cigarette brands do exhibit high loyalty compared to other consumer categories, and show a trend to higher brand loyalty over time coinciding with fewer price promotions; (3) The data shows a weak double jeopardy pattern of smaller brands enjoying somewhat lower loyalty; (4) Smokers of a given brand are on average more likely to purchase another large cigarette brand than another small brand; (5) A straightforward analysis method identifies occurrences of excessive cross-brand cannibalization in the portfolio of one of the major tobacco corporations; and (6) Certain brands enjoy particular appeal among specific demographic groups. The study sheds more light on consumer behavior towards a product with addictive qualities and known harmful effects.     

客户忠诚理论的价值分析和驱动模式研究

在客户关系管理(CRM)中,客户忠诚是其基本目标。客户忠诚是一种导致消费者与品牌发生联系的态度,进而表示出来的一种由个人特征、环境和购买情景共同作用的购买行为模式。在分析客户忠诚对客户关系管理的价值,客户忠诚的度量指标和维度分类的基础上,提出了客户忠诚的满意驱动、价值驱动、双因素驱动和多因素驱动四种驱动模式以及各因素对客户忠诚的驱动机理,揭示了客户忠诚的本质,为企业客户关系管理中达到客户忠诚提供理论支持和实践方法。     

Linking Brand Orientation with Service Quality,Satisfaction, and Positive Word-of-Mouth: Evidence from the Higher Education Sector

Brand orientation has been recognized as having a positive impact on organizational performance in both commercial and nonprofit sectors. However, limited studies have examined the moderating effects of brand orientation in the nonprofit sector, particularly in the higher education context. This study attempts to examine the construct of brand orientation from the perspective of the students and examine its moderating role on the relationship between service quality, satisfaction, loyalty, and word-of-mouth (WOM) communication behavior. Two hundred and fifty-eight questionnaires were completed by undergraduate students of an Australian university. The study found that students’ perception of a university’s brand orientation significantly moderates the relationship between service quality, loyalty, and WOM communication behavior. Significant managerial and theoretical implications were identified.     

The effects of 2-tier store brands’ perceived quality,perceived value,brand knowledge,and attitude on store loyalty

This paper divides store brands into generic ones versus individual ones. Accordingly, two types of store brand loyalty are discussed, namely general versus individual brand loyalty. It also analyzes perceptions of 2-tier store brands in terms of perceived quality and value, and explores the respective effects of consumer knowledge and brand attitude on store loyalty. Results show that both low-priced and medium-priced store brands are able to build individual store brand loyalty and store loyalty among customers. Managerial implications are also provided.     

The moderating effect of individual level collectivist values on brand loyalty

In today's dynamic business environment the success of a firm often depends on its ability to create brand loyalty. While there is a large body of research exploring brand loyalty and its antecedents, little has been done to examine how the relationship between these antecedents and brand loyalty is moderated by consumer differences in individual level collectivist values. This understanding is important however as consumers high in individual level collectivist values have been found to make different brand choices than consumers low in individual level collectivist values. We develop and test theory that suggests consumer differences in individual level collectivist values have a significant moderating effect on the relationship between perceived value, perceived quality, brand trust and brand loyalty. The results show that consumers high in individual level collectivist values are significantly more loyal to a focal brand, especially when brand trust and perceived quality are at relatively low levels.     

品牌体验对品牌忠诚的影响:品牌社区的中介作用

文章以"动感地带"为测试品牌,在构建品牌体验、品牌社区和品牌忠诚三者之间概念模型的基础上,应用多元回归分析,实证研究了品牌体验、品牌社区对品牌忠诚的影响.研究发现:品牌体验对品牌社区具有显著的正向效应;品牌体验和品牌社区对品牌忠诚均具有明显的正向影响;品牌社区是品牌体验作用于品牌忠诚的中介变量,品牌体验更多的是通过品牌社影响品牌忠诚.这些研究结论为品牌忠诚影响因素的进一步研究提供了理论基础,对于企业创新品牌忠诚培育模式和策略也具有指导意义.     

品牌忠诚度驱动模型的研究与应用

由于企业的营销思路和消费者的心理存在较大的差异,导致营销活动没有达到预期的效果,引入品牌忠诚度驱动模型的目的是为企业提供一种对消费者行为进行全面诊断的结构性框架,以此来研究消费者是如何看待品牌而品牌又是如何打动消费者的,帮助企业在提高消费者忠诚度和争夺最有价值的消费者等方面制定策略。