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Factors Influencing Brand Loyalty: The Mediating Effect of Brand Satisfaction and Trust

The article presents a literature review on brand loyalty, highlighting its significance as a consumer commitment that fosters continued brand purchasing and satisfaction. It identifies two components of brand loyalty—attitudinal and behavioral—and discusses various factors influencing brand loyalty, such as brand satisfaction, identity, and relationship commitment. The study concludes that managing loyal customers is crucial for businesses to maintain positive relationships and mitigate the impact of dissatisfied customers.

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0% found this document useful (0 votes)
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Factors Influencing Brand Loyalty: The Mediating Effect of Brand Satisfaction and Trust

The article presents a literature review on brand loyalty, highlighting its significance as a consumer commitment that fosters continued brand purchasing and satisfaction. It identifies two components of brand loyalty—attitudinal and behavioral—and discusses various factors influencing brand loyalty, such as brand satisfaction, identity, and relationship commitment. The study concludes that managing loyal customers is crucial for businesses to maintain positive relationships and mitigate the impact of dissatisfied customers.

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BRAND LOYALTY: A LITERATURE REVIEW

Article in International Journal of Economics Business and Accounting Research (IJEBAR) · March 2023

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International Journal of Economics, Business and Accounting Research (IJEBAR)
Peer Reviewed – International Journal
Vol-7, Issue-1, 2023 (IJEBAR)
E-ISSN: 2614-1280 P-ISSN 2622-4771
https://jurnal.stie-aas.ac.id/index.php/IJEBAR

BRAND LOYALTY: A LITERATURE REVIEW

Niken Permata Sari1), Bhenu Artha2), Antonius Satria Hadi3)


Universitas Widya Mataram, Yogyakarta, Indonesia1,2,3
E-mail: [email protected]

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.

Keywords: brand, brand loyalty, literature review.

Submitted: 2022-11-25; Revised: 2023-02-16; Accepted: 2023-02-23

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

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International Journal of Economics, Business and Accounting Research (IJEBAR)
Peer Reviewed – International Journal
Vol-7, Issue-1, 2023 (IJEBAR)
E-ISSN: 2614-1280 P-ISSN 2622-4771
https://jurnal.stie-aas.ac.id/index.php/IJEBAR

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 &

International Journal of Economic Research, Business and Accounting (IJEBAR) Page 67


International Journal of Economics, Business and Accounting Research (IJEBAR)
Peer Reviewed – International Journal
Vol-7, Issue-1, 2023 (IJEBAR)
E-ISSN: 2614-1280 P-ISSN 2622-4771
https://jurnal.stie-aas.ac.id/index.php/IJEBAR

Holbrook (2001) considered attitudinal brand loyalty as a committed and affect-laden


“partnership” between consumers and their favoured brands.
Yoshida et al. (2018) found that brand-related social media engagement and team
identification, a type of consumer-brand identification, simultaneously affected behavioral
brand loyalty. Palomba (2018) found that high brand loyalty video game players who
perceived themselves to have high perceived emotional intelligence were inclined to seek out
discernible gratifications from video game play, were aware of their feelings during video
game play, and were able to obtain sought after gratifications. Kim et al. (2018) presented
that among celebrity attributes, expertise was revealed to be most related to brand equity and
destination attachment and loyalty to the festival was found to affect attachment to the
festival destination, while festival brand awareness had a positive impact on festival brand
loyalty.
By applying service-dominant logic, the lens of affordance, and two brand perceptions
(brand competence and brand warmth), Fang (2019) has explored critical determinants of app
continuance intention and brand loyalty among app users, and five affordances of branded
apps are linked to value in use, which contributes both directly and indirectly to the two
loyalty related outcomes, through either brand competence or brand warmth. Arifine et al.
(2019) suggested that mood congruence, identity enhancement, unavailability risk reduction
and market competition are the most important facets that explains the two types of multi-
brand loyalty (complementary based and product substitutes).

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.

3. Results and Discussion


3.1. Results
This research presents that some variables are related with brand loyalty. Those variables
are affect and affected by brand loyalty. Details of the results are presented in table 1 below:
Table 1.
Selection References Listed According to Brand Loyalty
Author(s) Variable(s) Result(s)
Chuenban et al. (2021) brand attitude, brand brand attitude, brand quality, and brand
quality, brand value value have positive effects on brand loyalty
Taylor et al. (2020) satisfaction satisfaction has a positive effect on brand
loyalty
Panda et al. (2020) consumer altruism consumer altruism has a positive effect on
brand loyalty
Liu et al. (2020) affective place image, brand loyalty has a positive effect on
place attachment affective place image; brand loyalty has a
positive effect on affective place image
place attachment
Li et al. (2020) Customer engagement customer engagement has no influence on
brand loyalty
Kim et al. (2020) interest brand loyalty has a positive effect on
interest

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International Journal of Economics, Business and Accounting Research (IJEBAR)
Peer Reviewed – International Journal
Vol-7, Issue-1, 2023 (IJEBAR)
E-ISSN: 2614-1280 P-ISSN 2622-4771
https://jurnal.stie-aas.ac.id/index.php/IJEBAR

Author(s) Variable(s) Result(s)


Jung et al. (2020) brand image, consumer brand image has a positive effect on brand
satisfaction, consumer loyalty; consumer satisfaction has a
trust positive effect on brand loyalty; consumer
trust has a positive effect on brand loyalty
Kaur et al. (2020) consumer brand consumer brand engagement has a positive
engagement impact on brand loyalty
Boateng et al. (2020) service excellence, service excellence has a positive effect on
customer return on brand loyalty; customer return on
investment, brand trust, investment has a positive effect on brand
social interractionn ties, loyalty; brand trust has a positive effect on
brand identification, self- brand loyalty; social interractionn ties has a
image expression positive effect on brand loyalty; brand
identification has a positive effect on brand
loyalty; self-image expression has a
positive effect on brand loyalty
Zainudin et al. (2020) brand personality brand personality has a positive impact on
brand loyalty
Kataria & Saini (2020) customer satisfaction customer satisfaction has a positive impact
on brand loyalty
Lee & Chung (2020) brand satisfaction, brand brand satisfaction has a positive impact on
trust, brand commitment brand loyalty; brand trust has a positive
impact on brand loyalty; brand commitment
has a positive impact on brand loyalty
Shanahan et al. (2019) brand attachment, brand attachment has a positive effect on
perceived quality brand loyalty; perceived quality has a
positive effect on brand loyalty
Mody et al. (2019) brand love, memorability brand love has a positive effect on brand
loyalty; memorability has a positive effect
on brand loyalty
Lin et al. (2019) brand identification brand identification has a positive impact
on brand loyalty
Chung & Kim (2019) brand quality, brand trust, brand quality has a positive impact on
brand sustainability, brand loyalty; brand trust has a positive
economic value, symbolic impact on brand loyalty; brand
value, experiental value sustainability has a positive impact on
brand loyalty; economic value has a
positive impact on brand loyalty; symbolic
value has a positive impact on brand
loyalty; experiental value has a positive
impact on brand loyalty
Song et al. (2019) mystery, sensuality, mystery has a positive impact on brand
intimacy, trust, reputation, loyalty; sensuality has a positive impact on
performance, brand love, brand loyalty; intimacy has a positive
brand respect impact on brand loyalty; trust has a positive
impact on brand loyalty; reputation has a
positive impact on brand loyalty;
performance has a positive impact on brand
loyalty; brand love has a positive impact on
brand loyalty; brand respect has a positive

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International Journal of Economics, Business and Accounting Research (IJEBAR)
Peer Reviewed – International Journal
Vol-7, Issue-1, 2023 (IJEBAR)
E-ISSN: 2614-1280 P-ISSN 2622-4771
https://jurnal.stie-aas.ac.id/index.php/IJEBAR

Author(s) Variable(s) Result(s)


impact on brand loyalty
Kim & Lee (2019) brand identification, brand brand identification has a positive impact
image, brand love on brand loyalty, brand image has a
positive impact on brand loyalty, brand
love has a positive impact on brand loyalty
Adhikari & Panda relationship quality, relationship quality has a positive impact on
(2019) consumer-brand brand loyalty; consumer-brand engagement
engagement has a positive impact on brand loyalty

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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