Total views : 328

Mediation Role of Customer Advocacy in Customer Loyalty and Brand Equity Relationship – An Empirical Study in Context to In-store Brands

Affiliations

  • VIT Business School, VIT University, Vellore, Tamil Nadu – 632014, India

Abstract


Objectives: Brand equity and purchase decisions are considered as the key determinants of consumer behaviour. The objective of this study was to examine the role of loyal consumers in strengthening brand equity of In-store brands. Statistical Analysis: The method adapted to study the objectives is a cross sectional study. Th study was carried out by self- administered questionnaire developed based on Likert scale. The survey was carried out at organised retail outlets in Bangalore city from 258 customers by following convenience sampling technique. PLS-SEM was used to analyse the data. Cronbach’s Alpha was obtained to determine the reliability of the instrument. Further, convergent and discriminant validities were established to know the measures of relationship existing. Sobel’s test was employed to test the mediation effect of customer advocacy between the relationship of customer loyalty and brand equity. Findings: From the results obtained it is observed that all AVE values obtained are greater than 0.5 i.e., Brand Equity (BE) is 0.7788, Brand Loyalty (BL) is 0.7863 and Customer Advocacy (CA) is 0.797, thus confirming the convergent validity of the constructs chosen. Further it is also observed that each construct chosen is distinct and different from the other constructs in the model. All the factor loadings of given construct are greater than corresponding cross loadings thus confirming the discriminant validity. The results of Sobel’s test indicate that the impact of brand loyalty on brand equity is greater with the mediation effect of customer advocacy (Sobel test statistic t-values=3.627) than the direct effect of brand loyalty on brand equity (Sobel test statistic t-values=3.068). Thus we can clearly state that the relationship between Brand loyalty and Brand Equity can be best explained through Customer Advocacy. Both brand loyalty and customer advocacy have accounted for 60% of variance in brand equity, wherein brand loyalty has accounted for 45.3% of variance in customer advocacy. The findings of this study can be a reference for retailers to strategize their decisions with respect to in-store brands by laying more emphasize on customer advocacy. Application/Improvements: The outcomes reflect the positive influence of consumer advocacy on brand equity, by which the brand owners can strategize their moves towards enhancing brand equity by motivating advocacy of brands by the loyal customers to prospects, thus reducing excessive promotional costs by the brand owners.

Keywords

Brand Equity, Customer Advocacy, Customer Loyalty, In-store Brands, Mediation.

Full Text:

 |  (PDF views: 268)

References


  • Berry L, Parasuraman. Marketing Services: Competing Through Quality. New York: Free Press; 1991.
  • Price, Linda, Arnould. Commercial Friendships: Service Provider-Client Relationships in Context. Journal of Marketing. 1999; 63 (4): 38-56.
  • Srinivasan, Park C, Su S, Chang DR. An Approach to the measurement, analysis, and prediction of Brand Equity and its sources. Management Science. 2005; 51 (9): 1433-48.
  • Aaker DA. Managing Brand Equity. New York: Free Press; 1991.
  • Cobb-Walgren J, Ruble CA, Donthu N. Brand equity, brand preference, and purchase intention. Journal of Advertising. 1995;24(3): 25-40.
  • Keller. Strategic Brand Management: Building. Measuring and Managing Brand Equity, Upper Saddle River. NJ: Prentice Hall; 1998.
  • Shocker AD, Srivastave RK, Reukert RW. Challenges and opportunities facing brand management: An introduction to special issue. Journal of Marketing Research. 1994; 31(2): 149-158.
  • Keller. L. Strategic Brand Management: Building, Measuring and Managing Brand Equity (2nd Ed). NJ: Prentice-Hall; Englewood Cliffs, 2003. 1-24.
  • Winters C. Brand equity measures: Some recent advances. Marketing Research.1991; 3(4): 70-3.
  • Lassar W, Mittal B, Sharma. Measuring customer- based brand equity. Journal of Consumer Marketing. 1995; 12(4):11 -9.
  • Kapferer. Why are we seduced by luxury brands? Journal of Brand Management. 1998, 6(1): 44–9.
  • Pappu R, Quester PG, Cooksey RW. Consumer based brand equity: Improving the measurement - empirical evidence. Journal of Product and Brand Management. 2005; 14 (2-3):142-154
  • Kim JH, Hyun YJ. A model to investigate the influence of marketing-mix efforts and corporate image on brand equity in the IT software sector. Industrial Marketing Management. April 2011; 40(3): 424-38.
  • Stavros P, Kalafatis, Natalia Remizova, Debra Riley, Jaywant Singh. The differential impact of brand equity on B2B cobranding. Journal of Business and Industrial Marketing. 2012; 27 (8):623 -34.
  • Jacoby, Jan B, Robert W Chestnut. Brand Loyalty. New York: John Wiley; 1978.
  • Dick, Alan S, Kunal Basu. Customer Loyalty: Toward an integrated conceptual framework. Journal of the Academy Marketing Science. 1994; 22(2): 99-113
  • Morgan, Robert M, Shelby D Hunt. The Commitment- Trust Theory of Relationship Marketing. Journal of Marketing. Jul 1994; 58(3):20-38.
  • Zeithaml VA, Berry LL, Parasuraman A. The behavioural consequences of service quality. Journal of Marketing. 1996;60(2):31-46.
  • Yoo B, Donthu N, and Lee S. An examination of eelected marketing mix elements and brand equity. Journal of the Academy of Marketing Science. 2000; 28 (2): 195-211.
  • Rundle Thiele S, Bennett, R.A brand for all seasons? A discussion of brand loyalty approaches and their applicability for different markets. Journal of Product and Brand Management. 2001; 10(1): 25-37.
  • Tong X, Hawley JM. Measuring customer-based Brand Equity: Empirical evidence from the sportswear market in China. Journal of Product and Brand Management. 2009; 18(4): 262-71.
  • Erenkol AD, Duygun A. Customers’ perceived Brand Equity and a research on the customers of Bellona which is a Turkish furniture brand. The Journal of American Academy of Business. 2010; 16(1):.93-109.
  • Dlacic J, Kezman E. Exploring relationship between brand equity and customer loyalty on Pharmaceutical market. Journal of Economics and Business Review. 2014; 16(2):121-31.
  • Hill S, Provost F, Volinsky C. Network based marketing: Identifying likely adopters via consumer networks. Statistical Sciences. 2006; 21 (2): 256- 76.
  • Jana A, Chandra B. Mediating role of customer satisfaction in the mid-market hotels: An empirical analysis. Indian Journal of Science and Technology. Jan 2016; 9(1):12-13.
  • White SS, Schneider B. Climbing the commitment ladder: The role of expectations disconfirmation on customers' behavioural intentions. Journal of Service Research. 2000; 2 (3): 240- 53.
  • Pitt LF, Berthon PR, Watson RT, Zinkhan GM. The internet and the birth of real consumer power. Business Horizons. 2002; 45(4):7-14.
  • Wind J, Rangaswamy A. Customerization: The next revolution in mass customization. Journal of Interactive Marketing. 2001; 15(1):13-32.
  • Sawhney M, Kotler P. Marketing in the Age of Information Democracy. Kellogg on Marketing. In D Iacobuuci (Ed). New York: John Wiley Ltd; 2001.pp. 386- 408.
  • Urban G. The emerging era of customer advocacy. MIT Sloan Management Review. 2004; 45(2):77-82.
  • Lawer C, Knox S. Customer advocacy and brand development. Journal of Product and Brand Management. 2006; 15 (2):121-29.
  • Ki-Heung Yim, Jin-Hee Kwon. A Study on the impact of musical reputation on consumer satisfaction and word-of-mouth intention with on-line price discount as a moderating variable. Indian Journal of Science and Technology. Apr 2015; 8(S8):167–72.
  • Keller K L. Branding and brand equity. Cambridge. MA: Marketing Science Institute, 2002.
  • Atilgan E, Aksoy S, Akinci S. Determinants of the brand equity: a verification approach in the beverage industry in Turkey. Marketing Intelligence and Planning. 2005; 23 (3): 237-48.
  • Boo S, Busser J, Baloglu S. A model of customer based brand equity and its application to multiple destinations. Tourism Management. 2009; 30(2): 219 -31.
  • Gruen, Thomas, John Summers, Frank Acito. Relationship marketing activities, commitment and membership behaviours in professional associations. Journal of Marketing. 2000; 64 (3): 34-49.
  • Bansal H, Irving G, Taylor S. A three component model of customer commitment to service providers. Journal of the Academy of Marketing Science. 2004; 32(3): 234-50.
  • Harrison Walker J. The measurement of word-of-mouth communication and an investigation of service quality and customer commitment as potential antecedents. Journal of Service Research. 2001; 4(1): 60-75
  • Grisaffe DB, HP Nguyen. Antecedents of emotional attachment to brands. Journal of Business Research. 2011; 64(10):1052-59.
  • Susanta, Alhabsji T, Idrus, MS Nimran U. The effect of relationship quality on Customer Advocacy: The mediating role of loyalty. Journal of Business and Management. 2013; 12(4): 41-52.
  • Sheth, Jagdish N, Rajendra S Sisodia, Sharma A. The antecedents and consequences of customer-centric marketing. Academy of Marketing Science. 2000; 28 (1):55-66.
  • Fullerton G. Creating advocates: the roles of satisfaction, trust and commitment. Journal of Retailing and Consumer Services. 2011; 18(1): 92-100.
  • Shaun Smith, Joe Wheeler. Managing the Customer Experience. Financial Times: Prentice Hall; 2002.
  • Fornell C, Larcker D.F. Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research. 1981; 18 (1):39-50.
  • Carmines, Edward G, and Richard A Zeller. Reliability and Validity Assessment. Newbury Park, CA: Sage Publications; 1979.

Refbacks

  • There are currently no refbacks.


Creative Commons License
This work is licensed under a Creative Commons Attribution 3.0 License.