Factors Influencing Brand Loyalty: The Mediating Effect of Brand Satisfaction and Trust
Factors Influencing Brand Loyalty: The Mediating Effect of Brand Satisfaction and Trust
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Article in International Journal of Economics Business and Accounting Research (IJEBAR) · March 2023
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Abstract: Brand loyalty has been of interest to researchers for many decades and known
as an amicable attitude, also commitment toward a particular brand, builds
around consumer satisfaction and leads to continued maintenance and
purchasing of that brand. Brand loyalty consists of attitudinal and behavioral
loyalty, and all of which contribute to brand performance. The concept of
brand loyalty has been shown to have two components: an attitudinal
component and a behavioral component. Brand loyalty is a driving force for
business growth and an important asset for businesses, as it ensures stable and
sustainable profits for the company and is an important factor for consumers.
Dissatisfied customers can have a significant impact on business operations
through negative reviews, therefore managing loyal customers is an important
way to strengthen customer relationships. The objective of this research is to
determine the factors associated with brand loyalty. We presented a literature
study using systematic literature review of relevant publications and as a result
of this process, 22 articles are included and then examined the bibliographical
references to check the validity of the inquiry and to avoid any potential
omissions. The results didn’t find brand loyalty as a moderating variable.
There are soma variables that affect brand loyalty such as brand satisfaction,
brand identity and relationship commitment. Other variables are affected by
brand loyalty such as affective place image. Practical implications are also
presented here.
1. Introduction
Brand loyalty has been of interest to researchers for many decades (Bawa et al., 1989;
Gedenk & Neslin, 1999; Holland & Baker, 2001; Odin et al., 2001). Loyalty is generally
recognised as a brand asset (Aaker & McLoughlin, 2010) that firms invest in to protect and
develop. Hence, marketers need to understand factors that are related to higher or lower
levels of brand loyalty (Trinh & Dawes, 2020).
Achieving customer loyalty is a central goal for most firms (Ngobo, 2017) due to its
contribution to their profitability (Reinartz et al., 2005) and long-term survival (Agustin &
Singh, 2005). The customers’ cross buying intentions are primarily associated with image
conflicts about the provider’s abilities to deliver high quality services from different service
activities, and the perceived convenience of cross buying from the same provider and
customers’ experiences with the service provider have a weaker or marginal effect on cross
buying (Ngobo, 2004). Relative to non-loyal customers, loyal customers engage more in
positive word of mouth communication (Roy et al., 2014), are less price sensitive (Yoon &
Tran, 2011) and resist competitive offers, even when they are objectively better (Ahluwalia,
2000).
A brand is a trust mark for all intangible credibility and is a symbol of guarantee for a
particular brand product or activity (Bart et al., 2005). Brand loyalty, defined as an amicable
attitude and commitment toward a particular brand, builds around consumer satisfaction and
leads to continued maintenance and purchasing of that brand (Ballantyne et al., 2006). Brand
loyalty consists of attitudinal and behavioral loyalty, and all of which contribute to brand
performance (Yeh et al., 2016). Behavioral loyalty, specifically, can increase brand market
share and profit (Kim et al., 2020). The attitudinal loyalty positively correlates with the
acceptance of word of mouth and premium price (Shankar et al., 2003).
Chen et al. (2016) analysed which factors affect consumers' repurchasing intentions and
identified brand related qualities (experience with the brand, service quality, trust,
satisfaction, and commitment) as influencers. Price, function, appearance, social influence,
and brand perception were set as external variables that affect brand-related qualities and the
analysis revealed that some consumers made their purchasing decisions because they were
convinced by other people (Kim et al., 2020). When consumers were satisfied with the
quality of the service of a certain brand, they encouraged people around them to make similar
purchasing decisions through word of mouth (Azad & Safaei, 2012). In sum, consumers can
develop an interest in a new brand of smartphone under the influence of their peers, which
can affect their intention to switch to a new brand (Kim et al., 2020).
Abbes et al. (2020) show that loyalty intentions to collaborative redistribution platforms
has an impact on brand loyalty intentions, while the effect of satisfaction towards platform
service experience on brand loyalty intentions is mediated by platform loyalty intentions and
platform's characteristics don't have the same influence on platform and brand loyalty
intentions. Scholars have found that consumer brand relationships (CBRs) are a mechanism
in building customer brand loyalty and these different CBRs features are positive predictors
of customer brand loyalty (Homburg et al., 2009; Mazodier & Merunka, 2012).
The concept of brand loyalty has been shown to have two components: an attitudinal
component and a behavioral component (Li et al., 2010). Brand loyalty, in the present study,
is operationalized as its most common attitudinal manifestation in the hospitality and tourism
literature, as “a deeply held psychological commitment to repurchase a product or repatronize
a service in the future” (Oliver, 2010). Batra et al. (2012) found strong relationships between
brand love and brand loyalty, and Bergkvist & Bech-Larsen (2010) demonstrated robust
support for this relationship across a number of contexts, including painkillers, food, personal
care items, and electronics. Back & Parks (2003) presented the relationship between brand
love and loyalty in the lodging industry with similar results, and Thomson et al. (2005) found
a strong positive relationship between brand love and brand loyalty across a number of
different contexts.
Correia Leal & Ferreira (2020) presented that when hospitality employees appear to be
sick, customers have weaker recommendation and return intentions compared to when
employees do not show any sickness and due to perceived ethnic dissimilarity, customers do
not tend to withdraw from non-similar sick employees, not showing weaker recommendation
and rebooking intentions toward tourist accommodations. Amine (1998) argued that brands
that generate positive emotions amongst consumers (for example feeling “happy” or “joyful”
or “affectionate”) are likely to benefit from greater attitudinal brand loyalty. Chaudhuri &
2. Research Method
This research uses a literature study, namely systematic literature review that presented in
previous researches (Artha & Jufri, 2021; Khairi et al., 2021; Larsson & Broström, 2020;
Snyder, 2019; Yang et al., 2020) and included 22 articles as a result.
Garanti & Kissi (2019) brand equity, brand brand equity has a positive impact on brand
personality loyalty; brand personality has a positive
impact on brand loyalty
Han et al. (2018) brand satisfaction, Brand satisfaction has a positive impact on
relationship commitment brand loyalty; relationship commitment has
a positive impact on brand loyalty
Coelho et al. (2018) brand identity brand identity has a positive impact on
brand loyalty
3.2. Discussion
The results in the table above show the variables that associated with brand loyalty. The
results didn’t find brand loyalty as a moderating variable. There are some variables that affect
brand loyalty such as brand satisfaction, brand identity and relationship commitment. Other
variables are affected by brand loyalty such as affective place image.
4. Conclusion
The results of the research show the variables that associates with brand loyalty. This
research contributes the variables that affect by brand loyalty. There are some variables that
affect brand loyalty such as brand satisfaction, brand identity and relationship commitment.
Other variables are affected by brand loyalty such as affective place image. The implication
for practitioners is to be able to know things related to brand loyalty, so that it can be taken
into consideration in decision making. The limitation of this study is brand loyalty didn’t find
as a moderating variable. Future research should investigate about variables that moderate the
relationship of a variable with brand loyalty.
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