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.     

Consumer brand engagement concept and measurement: Toward a refined approach

This paper revisits conceptual and operational consumer brand engagement (CBE) definitions from the consumer behavior and marketing literature, with the objective of developing a CBE scale drawing upon Expectancy Theory for clear delimitations of its dimensions, and increased power to discriminate them theoretically and empirically. Two qualitative and three quantitative studies were conducted using both structural equation modeling and multiple item response theory. Results point to a more parsimonious operationalization of the CBE measure, with well-delimited dimensions and improved discrimination capacity, which is better able to capture consumers’ levels of engagement in its different manifestations compared to preexisting scales.     

Investigating the antecedents of customer brand engagement and consumer-based brand equity in social media

The current research is concerned with identifying and testing the role of three main predictors: consumer involvement, consumer participation, and self-expressive brand on the customer brand engagement (CBE). The customer brand engagement is treated in the current study as multidimensional constructs comprising three main aspects: cognitive processing (CP), affection (AF), and activation (AC). It was also proposed a direct influence for these three aspects of CBE on consumer-based brand equity (CBBE). Using online surveys, we gathered data from fans/followers of mobile phone service providers, via Facebook fan pages in Jordan. The data were analysed using structural equation modelling. Based on structural equation modelling analyses (SEM), it was supported that CBE aspects were largely predicted by the role of consumer involvement (INV), consumer participation (COP), and self-expressive brand (SEB). However, we find that activation impact one dimension of the CBBE dimensions, namely, brand loyalty. Further, we find that brand awareness/associations affect perceived quality but not brand loyalty. To validate the CBE scale, future studies could investigate the impact of the scale using other social media platforms for different brands. The limited amount of empirical research on CBE was the motivation behind this research. In particular, there is no study that has investigated the main predictors of CBE and its consequences over developing context by proposing and testing the association between the antecedents of CBE with the dimensions of CBE, which in turn affect the dimensions of CBBE.     

How virtual brand community traces may increase fan engagement in brand pages

Brand pages in social media are a great way to foster consumer gathering around a brand, but it can be challenging to keep fans engaged and coming back to see updated content. Brands with millions of fans on Facebook have seen organic reach fall below 2% of their base. In this article, we describe how the creation of virtual brand communities can help brand managers increase fan engagement. We suggest the steps, conditions, advantages, and limitations involved in nurturing a brand page as an online social gathering that assumes some of the characteristics of a virtual brand community. The results of our study show that a brand page can have some of the characteristics of a virtual brand community—topical information exchange, identity communication, and establishment and internalization of cultural norms. We also show the importance of having celebrities among fans in order to foster social interactions and legitimate social practices on brand pages.     

Creation of consumer loyalty and trust in the retailer through store brands: The moderating effect of choice of store brand name

Within the current economic context, store brands play an important role in differentiation strategies based on assortment and positioning in terms of distributor prices. To begin with, this study identifies three determining aspects of retail loyalty and trust: satisfaction with price levels, the perceived image of the assortment and loyalty to the store brands (SB). Secondly, this study proposes a theoretical relational model among the aforementioned aspects. Finally, this study analyzes the moderating role that the strategy of choosing SB name (umbrella brand label vs. brands different from the label brand) plays in the relationship between loyalty to SB and loyalty to and trust in the retailer. By including this moderating variable, we seek to contribute to current academic research and to provide insights into the importance that SB strategy (label vs. own name) has for the effect of loyalty to SB on the relative results of the retail company. Our research results show that making the umbrella SB name the same as the label brand name increases the positive effect of customer loyalty to SB on loyalty to the retailer, but not the effect of trust on this loyalty compared to chains that use SB names different from those of the label. These results have important implications for management.     

Understanding drivers and outcomes of lurking vs. posting engagement behaviours in social media-based brand communities

ABSTRACT

Social media-based brand communities (SMBBC) are ideal tools to develop Consumer Engagement (CE). Yet, brands do not fully understand whether members are really loyally engaged with the brand and uncertainties remain regarding SMBBC return on investment. Therefore, our aim is to understand what drives CE within SMBBC, to relate it to different CE behaviours and to study its impact on brand loyalty. Data from 213 Facebook users was analysed using PLS-SEM. The study concludes that the drivers for passive/lurking and active/posting behaviours differ and vary according to brand type, with the former revealing a stronger positive association with brand loyalty than the latter. This study also provides valuable insights into CE literature and to brands holding SMBBC, helping them to successfully develop social media strategies.     

The impact of brand equity on brand preference and purchase intentions in the service industries

The antecedents of brand equity are considered to be brand attitude and brand image, and the consequences of brand equity are considered to be brand preference and purchase intentions. This study concentrates on service brands, selecting 18 from 3 service categories. A structural equation model is presented. Not only does it show a good fit with the research constructs but also the relationships between brand image and brand equity, and brand attitude and brand equity. The impact of brand equity on customer preference and purchase intentions is confirmed as well, which tends to validate the proposed research framework.     

Inclusive advertising featuring disability on instagram: Effect on consumer well-being,brand engagement,and purchase intention

Should advertisers continue to promote their brands through brand endorsers without considering their diverse characteristics, or should they embrace diversity in advertising? Gender, age, ethnicity, and sexual orientation are some of the aspects of diversity that have been investigated in advertising research, primarily in the context of Western and developed countries. However, it remains underexplored how physical disabilities in influencer advertising on Instagram affect consumer well-being and consumers’ responses toward brands in a non-Western market. Through an experimental design (including both inclusive and non-inclusive samples), this study examined the effects of inclusive advertising (including disabled persons) on consumer well-being (both hedonic and eudaimonic), brand engagement, and purchase intention. Two studies were conducted to test the hypotheses. In Study 1 (shampoo brand case), a data analysis of 260 young Pakistani consumers revealed that inclusive (vs non-inclusive) advertisements enhance both hedonic well-being (HWB) and eudaimonic well-being (EWB), with a stronger effect for EWB. The spillover effects of EWB and HWB indicated a significant influence on brand engagement and purchase intention, whereas the effect of HWB is significant only on brand engagement. The effects of HWB on brand engagement and of EWB on purchase intention showed a greater influence in the case of inclusive advertisements than in traditional non-inclusive advertisements. In Study 2 (clothing brand case), an analysis of 235 respondents revealed that inclusive advertising drives both HWB and EWB, which have a greater influence on brand engagement and purchase intention when individuals are exposed to an inclusive advertisement featuring disabled persons than a non-inclusive one. These studies confirm that inclusive advertisements attract a more diverse customer base in addition to existing customers. These findings offer theoretical and practical insights for advertising and consumer research.     

Employee brand engagement on social media: Managing optimism and commonality

This article considers how employees engage with B2B firms on social media, a topic that is largely overlooked in the extant brand engagement literature. Using the results from a large-scale study of employee brand engagement on social media, we identify two key drivers of employee brand engagement using the content analysis tool DICTION—namely, optimism and commonality. Employees of top-ranked and -rated firms express higher levels of optimism and commonality in their reviews of their employers on social media than do their counterparts in bottom-ranked and -rated firms. This permits the construction of a 2 × 2 matrix that allows managers to diagnose strategies for increasing or improving employee brand engagement. This creates four different kinds of employee brand engagement situations, and offers human resources and marketing managers different strategies in each case. We demonstrate how practitioners and scholars can shed new light on the way stakeholders engage with brands.     

Effects of in-store information quality and store credibility on consumer engagement in green retailing

Literature has reported that store-level information is crucial in determining consumer engagement with green stores. This study examines the effects of in-store (green) information quality on consumer engagement behaviours and mediating effects of store credibility. Moreover, the study reveals whether consumer passion for the environment moderates the effect of in-store (green) information quality on store credibility. Statistical analyses of useable data from 763 respondents examined the relationships. Credibility emerged as a key mechanism to enhance the effects of information quality on consumer engagement. Thus, this study extends theoretical discussions on information quality, consumer passion, and consumer engagement for green retailing.     

Role of customer perceived brand ethicality in inducing engagement in online brand communities

In recent times, ethical consumerism has motivated firms to behave ethically to garner various benefits for their brands. More specifically, firms have become more conscious of consumers' perceptions of brand ethicality. Thus, recent research on this topic attempts to explore the factors that can lead to the formation of perceptions of brand ethicality and its favorable outcomes for the brand. This research contributes to the existing literature on brand ethicality by examining the role of perceived brand marketing communications in engendering perceptions of brand ethicality among consumers. Further, this research explores online brand community engagement as the outcome of perceived brand ethicality. The study's results based on the analysis of 397 responses exhibit that various elements of brand communications tend to generate favorable perceptions of brand ethicality. Such perceptions of the brand ethicality further induce an inclination towards engaging with online communities of such brands. The study offers specific implications for academicians and practitioners.     

The impact of customer awareness of manufacturer name disclosure on retail brand attitudes and loyalty in Korea

This paper explores the impact of exposing the name of the manufacturer on a retail brand product upon national brand loyalty, retail brand loyalty and store loyalty, It does so by exploring customer attitudes towards retail brands in South Korea, where there is a legal requirement for retail brands to portray the manufacturer׳s name. For international retailers entering markets where such disclosure is a legal requirement an understanding of the implications of this for retail brand management is essential. The findings suggest that in the Korean case revealing the name of the manufacturer who supplies the retail brand on the product packaging has a positive influence on attitudes towards retail brands, although it did not mitigate the perceived risks held by customers towards retail brand products in general.     

Tourists' purchase intentions: impact of franchise brand awareness

This study examines how an intention on the part of tourists to purchase items for daily use is determined by their awareness of franchise-branded stores, the image of those brands, and the perceived risk of purchase from non-franchised stores within Taiwan. In that country franchised chains are an important component of the retail mix, and their presence in tourist destinations can influence shopping patterns. The results indicate that positive relationships exist between intentions to purchase items from franchise convenience stores and perceived risk of buying from unfamiliar retail outlets. Equally familiarity with the destination acts as a moderating variable, and this variable facilitates higher patronage of non-franchised stores by tourists. The results indicate a general preference for purchases from well-established franchised outlets than locally independent owned stores. Managerial implications for both types of stores in tourist zones are discussed.     

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。     

A typology of organisational stakeholder engagement with place brand identity

ABSTRACT

This study explores how stakeholders engage with a place brand identity (PBI) in the context of country branding. This research extends beyond the importance and challenges of stakeholder brand engagement with place brand identity by exploring several typology of stakeholder engagement with PBI. A case study approach using semi-structured interviews with 39 senior-level representatives from national Australian organisations was adopted to explore how internal stakeholders in Australia are engaged with the current PBI initiative in Australia: Australia Unlimited (AU). A typology of stakeholder engagement with a PBI, including philosophical and concrete engagement was identified. Stakeholders’ philosophical engagement is reflected by their moral support, future engagement intention, as well as positive word-of-mouth (WOM) behaviour. Concrete engagement, on the other hand, is reflected by place brand partnership and internalisation of PBI in the organisations’ strategy. The research findings offer practical ways for place brand managing organisations (PBMO) to enhance stakeholder engagement with a PBI. The identification of multicomponent nature of PBI from the research findings allows PBMO to identify which PBI component lacks stakeholder support in order to make necessary improvements. Further, identification of the typology of stakeholder engagement with PBI provides alternative strategies of how stakeholder engagement can be managed.     

The impact of pronoun choices on consumer engagement actions: Exploring top global brands' social media communications

To enhance the understanding of consumer engagement with brand content on social media, this study examines how pronoun choices affect different types of consumer engagement (e.g., likes, comments, shares) by simultaneously exploring five different pronoun types (first-person singular, first-person plural, second person, third-person singular, and third-person plural). Furthermore, this study explores how the effects of these linguistic (pronoun) choices vary across two brand classifications: characteristics (hedonic vs. utilitarian) and offerings (goods vs. services). The proposed multivariate Poisson regression model, analyzing 15,788 unique brand posts from Facebook over an 8-month period, reveals differences in engagement due to pronoun usage across brand classifications. These results offer a deeper understanding of how the way brands talk to consumers on social media platforms influences consumers' attitudes (likes), propensity to engage with the brand (comments), and willingness to share branded content with their social networks (shares) across different brand classifications.     

Modeling consumer engagement on social networking sites: Roles of attitudinal and motivational factors

This paper reports on a study that seeks to assess an extended typology of consumer social networking engagement behaviors. Drawing on uses and gratifications theory, this study assesses consumer engagement with social media, where consumer engagement incorporates consumer responses to marketing communications. The paper argues that certain motivations for social media use serve as antecedents to general attitudes toward social networking sites, which subsequently affects attitudes toward marketers' social networking sites. These attitudes then influence subsequent consumer engagement behaviors. The results show that social facilitation motivation, participating and socializing motivation, and information motivation positively influence consumers' general attitudes toward social networking sites, which had a strong effect on their attitude toward marketers' social networking sites. The relationship between attitudes toward social networking sites and engagement with social networking sites was mediated by attitudes toward marketers’ social networking sites also mediated. The current study brings together the online advertising perspective and the consumer motivation/gratifications perspective of using social media in branding and marketing into a conceptual model that holds up to empirical testing. The paper ends with a discussion of some limitations of the study and proposes avenues for future research.     

A brand preference and repurchase intention model: the role of consumer experience

Consumer brand preference is an essential step towards understanding consumer choice behaviour, and has therefore always received great attention from marketers. However, the study of brand preference has been limited to traditional marketing focusing on functional attributes to maximise utility. But now the shift to experiential marketing broadens the role of the brand from a bundle of attributes to experiences. Technological advancements have helped to increase the similarities between brand attributes and product commoditisation. Consequently, consumers cannot shape their preferences among brands using rational attributes only. They seek out brands that create experiences; that intrigue them in a sensorial, emotional and creative way. This study seeks to develop a model that provides an understanding of how brand knowledge and brand experience determine brand preference and to investigate its impact on brand repurchase intention. Accordingly, exploratory focus group discussions are employed followed by a survey of mobile phone users in Egypt. The findings provide insights into the relative importance of consumer perceptions on different brand knowledge factors in shaping brand preferences. It also demonstrates the significance of consumers’ experiential responses towards brands in developing their brand preferences that in turn influence brand repurchase intention. The model therefore offers managers a new perspective for building strong brands able to gain consumer preferences.     

Effects of co‐creation claim on consumer brand perceptions and behavioural intentions

Increasingly often, companies ‘co‐create’ with consumers in open innovation practices to develop new products more effectively. Little is known about how co‐creation affects consumer brand perceptions in the mass market. We hypothesize that co‐creative brands – as opposed to non–co‐creative brands – are perceived as more authentic and sincere, and are associated with relatively positive behavioural intentions. A between‐subjects experiment was conducted to test these hypotheses in an online panel of consumers who did not take part in co‐creation. The experiment had a 3 (control vs. co‐creation vs. co‐creation supported with some visual proof) × 2 (well‐known existing brand vs. fictitious brand) design. Quantitative data analyses (n = 530) confirmed that for both brands, co‐creation affects brand personality perceptions directly and behavioural intentions indirectly. This study shows that co‐creating with consumers can be a strategic method to positively influence product perceptions and behavioural intentions.     

Social media influencers: A route to brand engagement for their followers

Social Media Influencers (SMIs) are micro‐celebrities with large followings on social media platforms who engage consumers and hold the potential to promote customer‐brand relationships across different product categories. SMIs have an existing relationship of trust with consumers, and consumers seek out the content created by SMIs for valuable information and advice. This study explores the process of brand engagement between consumers and brands in the digital content marketing environment, specifically examining the research question: Do SMIs act as a route to brand engagement for their followers? The context for this study is the beauty community on YouTube; over 60,000 user comments were analyzed through automated text analysis. This study is among the first to provide empirical evidence that SMIs do act as a route to brand engagement through the three dimensions of cognitive processing, affection and activation.