Journal of High Technology Management Research xxx (xxxx) xxx–xxx

Contents lists available at ScienceDirect

Journal of High Technology Management Research

journal homepage: www.elsevier.com/locate/hitech

A revised model of e-brand equity and its application to high

technology products
⁎
Loc Tuan Lea, Lobel Trong Thuy Tranb, , Ly Minh Thi Phamb, Doan Thuc Dinh Tranb
a
University of Economics and Law of VNU-HCM, Hoc Chi Minh City, Vietnam
b
Faculty of Business Administration, Ton Duc Thang University, Vietnam

A R T IC LE I N F O ABS TRA CT

Keywords: Given the growing importance of online social media platforms (OSM) in brand management, the
E-brand equity authors attempt to extend the relationship between e-brand equity and repurchase intention with
Visual appeal two mediator variables, namely visual appeal and e-preference in which willingness to pay a
E-preference price premium (WPPP) serves as a moderator. Drawing on the perspective of digitalized en-
Repurchase intention
gagement (PDE), the authors confirm the mediating effects on the e-brand equity-repurchase
Perspective of digitalized engagement
online social media platforms
intention link while evidencing both positive and negative effects of WPPP on the linkage of e-
brand equity and mediators. Contributions to theory, practice, and future studies are also pro-
vided.

1. Introduction

Recent changes in areas like consumption habits and means, and the state of technological innovation have brought brands to
witness an increasing role being played by OSM platforms (e.g., Facebook) in reforming branding activities. As posited technological
efficiencies by Grewal, Roggeveen, and Nordfält (2017), OSM platforms enable brands to make better predictions about consumer
behavior, design more appealing offers, and better target their customers. In line with this reasoning, brand managers are challenged
to capture the interest of customers and to engage them in the online experience to attain business goals (Nah, Eschenbrenner, &
DeWester, 2011). Subsequently, brand management today, the literature maintains, are involved in cyclical processes of consumer
consumption and engagement, leading to enhanced profitability (Grewal et al., 2017).
In the context of high technology product (HTP), the situation regarding the ability to adopt technology and social connectivity is
changing drastically. Advances in OSM technology have enabled HTP companies to introduce new products with better value and
added features; however, product life cycles are in turn shortened (Chanda & Das, 2015). Therefore, companies have to emphasize
their offers associated with technological evolution and market dynamics simultaneously, the most valuable assets for creating,
maintaining, and enhancing strength (Osei-Frimpong & McLean, 2018). One of the keys to a strong brand is for visually designed
products to be novel, exclusive, and prestigious in which customers can rely on their feelings and evaluation (Lee, Ha, & Widdows,
2011).
Significant historical research extensively considers classical brand equity as a construct which is a valuable asset for the firm but
fails to recognize the complexity in the technological dynamism (Chatzipanagiotou, Veloutsou, & Christodoulides, 2016). A major
theme of branding strategy today relies on online activities and programs to engage customers, thereby directly or indirectly raising

⁎
Corresponding author at: Lobel Trong Thuy Tran, Faculty of Business Administration, Ton Duc Thang University, Ho Chi Minh City, Vietnam.
E-mail addresses: loclt@uel.edu.vn (L.T. Le), ltthtran@tdtu.edu.vn (L.T.T. Tran), phamthiminhly@tdtu.edu.vn (L.M.T. Pham),
71306533@student.tdtu.edu.vn, thucdoan1510@gmail.com (D.T.D. Tran).

https://doi.org/10.1016/j.hitech.2018.09.005

1047-8310/ © 2018 Elsevier Inc. All rights reserved.

Please cite this article as: Le, L.T., Journal of High Technology Management Research,
https://doi.org/10.1016/j.hitech.2018.09.005
L.T. Le et al. Journal of High Technology Management Research xxx (xxxx) xxx–xxx

Table 1
A review of relevant studies on the brand equity-repurchase intention chain.
Author(s) Journal Examined context Applied OSM Grounded theory Moderating effect Examined region

Keller (2010) INTMAR Brand awareness, association, Yes No No USA

attitude, attachment, and brand
activity.
Filieri and Lin (2017) COMHB Aesthetic, utilitarian, social- No No No China
cultural, and brand value factors.
Mianzi, willingness to pay.
Repurchase intention.
Grewal et al. (2017) RETAIL Technology& tools to facilitate Yes No No U.S.A
decision. Sweden
Visual display& merchandise offer
decision.
Consumption& engagement.
Kim et al. (2011) I&M Functional, emotional, and social Yes Customer value No South Korea
value. theory
Intention to purchase digital items.
Li and Meshkova ECRA Virtual product experience / Yes No Product type / U.K. and U.S. web
(2013) product videos. experience or search stores
Consumer informedness / goods
excitement.
Purchase intention.
Willingness to pay.
Bian and Forsythe JBR Luxury brand, need for uniqueness, No No No U.S. and China
(2012) and self-monitoring.
Affective attitude.
Purchase intention.
Hagtvedt and Patrick JCP Art presence, brand image, and No Consumer No University student
(2008a) perceived extension fit. perception of art
Brand extendibility.
Sullivan and Kim IJIM Trust and e-commerce adoption. Yes No No South Korea
(2018) Perceived value, product quality,
and repurchase intention.
Casidy and Wymer JRCS Satisfaction. No No Risks U.S
(2016) Loyalty.
Willingness to pay.
Alamro and Rowley JPBM Brand awareness, brand image, and No No No Jordan
(2011) consumer attributes.
Brand preference.

Note: INTMAR = Journal of Interactive Marketing; COMHB = Computers in Human Behavior; RETAIL = Journal of Retailing; I&M = Information
& Management; ECRA = Electronic Commerce Research and Applications; JBR = Journal of Business Research; JCB = Journal of Consumer
Psychology; IJIM = International Journal of Information Management; JRCS = Journal of Retailing and Consumer Services, JPBM = Journal of
Product & Brand Management.

awareness and eliciting sales of products (Keller, 2010). There are two related questions of interest: how precisely is a brand equity
reoriented in the OSM era and what its actual effect on repurchase intention may be. If so, how can the reoriented brand equi-
ty―repurchase intention link be revised and strengthened? Accordingly, the authors focus on addressing these two questions.
In this study, the authors developed a better understanding of the reoriented e-brand equity, focusing on brand awareness and
brand activity through the integration of OSM platforms, conducting an extensive review of relevant studies. As Table 1 shows, the
primary focus is largely on developed economies. In addition, the almost total lack of mediating and moderating effects and absence
of a theoretically grounded framework make previous findings less likely to be fully applied to business practices. Therefore, the
authors first adapted the PDE theory to ground the research framework and renew it by examining the mediating roles of visual
appeal and e-preference, as well as the moderating effect of WPPP. As a result, the authors can provide a sufficient contribution when
the conceptual model includes theoretically identified and managerially controllable moderators (Palmatier, 2016). Furthermore, the
authors extend previous literature by examining the proposed model in an emerging economy (Vietnam) in order to offer more
insightful implications applicable to a range of economies.

2. Theoretical framework and hypothesis development

2.1. Perspective of digitalized engagement

As digital technology advances, the way in which marketers connect with stakeholders has changed. The effects of OSM platforms
(e.g. Facebook) have resulted in revolutionizing the interaction between companies and customers, specifically customers are no
longer merely receiving data from companies but actively engaging, interacting and co-innovating with companies to voice and
account for their concerns (Straker, Wrigley, & Rosemann, 2015). In line with this notion, Straker and Wrigley (2016) indicate that

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Fig. 1. Hypothesized moderator role of willingness to pay a price premium on the e-brand equity―mediators―repurchase intention chain.

customers tend to engage and share their own content through OSM platforms, rather than simply downloading or searching for static
data. Thus, it is important to harness the power of digitalization to build an equitable, sustainable, and prosperous brand.
PDE, which refers to brands' possession of new forms of knowledge and processes on OSM platforms, allow them to create deeper
engagements with their customers (Straker & Wrigley, 2016). In an OSM-driven market, the consumer, not the company, is in the
middle. A person, who buys the product, is at the absolute center of business. Hence, companies have to revolve around the customer
(patrons). To create value, brands are required to engage in continuous innovation based on OSM platforms, due to the ability to
provide collective guidance and direction (Talke, Salomo, & Kock, 2011). In much the same way brands' value creation in gen-
eral―and PDE in particular, is undergoing a reevaluation by marketing researchers. Based on the PDE, brand managers can connect
their brand with a variety of actual experiential outcomes of customers and also entail good-service offerings in which they cooperate
with external stakeholders (Ramaswamy & Ozcan, 2016). In addition, PDE offers technical and administrative mechanisms to possess
information that allow brands to create deeper connections with customers, especially to guarantee customer retention (Straker et al.,
2015). In place of the chain of brand equity and purchase intention that has been considered as effective brand value management,
this study employs PDE to access a new paradigm for brand building by examining the e-brand equity, visual appeal, e-reference,
WPPP, and repurchase intention, as illustrated in Fig. 1.

2.2. Redefining e-brand equity

Companies today, the mainstream, are in a periodic innovation of their brand equity, allowing brands to identify and distinguish
their products from their competitors. This exemplifies the incremental utility to a product of its brand name that reflects competitive
advantages and marketing strategy. Guided by PDE, companies use OSM platforms to co-create and enhance the design and delivery
of goods and services (Ramaswamy & Ozcan, 2016). For example, a brand can create its competitive advantage by co-creation
activities in which consumers act as co-producers of products (Hsieh & Chang, 2016). In a digital environment, e-brand equity creates
value by enabling companies to use OSM to improve interaction with customer and reduce production risk. This shows that a valuable
source of brand innovation is derived from consumer involvement. E-brand equity is based specifically on OSM-based interactivity in
which companies are able to communicate brand messages to customers, generating collective and individual interaction with them.
This represents a major marketing asset that uses online interaction to create competitive advantages, improve brand value and
enhance the positive perception of consumers.
E-brand equity creates value by enabling managers to use interactive online communications to enhance customer loyalty, the
likelihood of choosing a particular brand, attract new customers, and have extension capabilities (Keller, 2010; Nah et al., 2011). The
ability to integrate valuable information with online dialogue and interaction to make strategic decisions, is now an important source
of e-brand equity (Straker & Wrigley, 2016), acting as a major component in brand building which relates to the relationship with the
customers (Chatzipanagiotou et al., 2016). On the basis of PDE, Ramaswamy and Ozcan (2016) indicate that OSM platforms have
become integral to brand offerings from enhancing product design and delivery to individual customers through online co-creational
experiences. This depicts two goals for brands to achieve; specifically, (1) a well-recognized/ known brand appears to perform better
in the marketplace leading to a much higher possibility of being chosen by its consumers (Huang & Sarigöllü, 2012), and (2)
interactivity warrants the degree of communication influences which allow interactive contents to activate consumers to engage with
brand offerings (Schultz, 2017).
Based on the literature, this study conceptualizes e-brand equity as a multidimensional construct that consists of two critical
factors: (1) brand awareness, which refers to whether a consumer can familiarize, recall or recognize a brand, or simply if he/she
knows about that brand (Huang & Sarigöllü, 2012); and (2) brand activity, which refers to the number of different ways brand loyalty
manifests itself in day-to-day consumer behavior (Keller, 2010).
Both visual appeal and e-preference are sequential mediators of successful e-brand equity. Visual appeal enables brands to deliver
the values of exclusivity, luxuriousness, and sophistication to associated products, so as to create positive product evaluations. For
instance, Lee et al. (2011) indicate that visual appeal creates consumers' positive attitude and pleasure which in turn lead to their
approach behavior. Moreover, e-brand equity emphasizes the application of OSM platforms in which a brand is required to possess
the ability to engage consumers directly through online interactions (Schultz, 2017). This enables a brand not only to deliver the
value but also support a customer's value creation in the value-generating process (Ramaswamy & Ozcan, 2016) which typically

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represents the form of the brand's e-preference. In addition, repurchase intention is the outcome of visual appeal and e-preference.
This is because consumers can confirm the value-added product leading to prospect behaviors after previous positive experiences
through the online interactivity with the brand. Thus, e-brand equity can enable brands to create superior customer value and attain
superior brand value, thereby creating a long-term competitive advantage.

2.3. The mediating role of visual appeal and e-preference

As defined by Sullivan and Kim (2018), repurchase intention is a consumer's subjective probability of revisiting a brand, making a
continuous interest. In particular, it is important to understand the repurchase intention of consumers as they lead opinions to others
that are enabled to produce a critical mass of users of technology (Filieri & Lin, 2017). As a result, recent years have witnessed an
increased emphasis on delivering the direct effect of brand equity to repurchase intention from previous studies such as Nah et al.
(2011). Because this link can offers brand managers know-how to develop and position the HTP and increase the repurchase pos-
sibility of the consumers (Filieri & Lin, 2017), the authors seek to renew this through two meditating variables (visual appeal and e-
preference). Specifically, the authors first examine the e-brand equity―visual appeal and e-preference―repurchase intention chain.
Prior research has theoretically and empirically investigated the effect of visual art on helping firms increase their brand ex-
tendibility (Hagtvedt & Patrick, 2008a). The focus is on the general influence of the presence of art on consumer perceptions and
evaluations of the products with which it is associated (Hagtvedt & Patrick, 2008b). However, a consequence of the visual effects on
customer's behavioral intention remains nascent and requires further assessment. For example, stimulus-related visual design on
products can lead directly to choice and decisions, and marketing activities will interact in the final choice process (Kahn, 2017). In
the context of HTP, visual appeal refers to the aesthetic perception of consumers as derived from product design such as color, shape
and material (Lee et al., 2011). Related to this, Dion and Arnould (2011) indicated that products with art exert innovative values in
which consumers seek to associate with luxury. Consumers often communicate their social status through material possession in
which luxuriousness works as an effective social label. Thus, the visual appeal can enable consumers to feel about and evaluate the
product more favorably (Lee et al., 2011). Therefore, the authors posit that:
H1a. Visual appeal appears to mediate the relationship between e-brand equity and repurchase intention, such that e-brand equity
does not have a direct and positive influence on repurchase intention.
The literature suggests that brand preference is a cornerstone of the marketing discipline in forming brand strategy (Alamro &
Rowley, 2011) because it yields choice elements and consumer decision-making. While brand preference refers to functional moti-
vation of consumers to affiliate directly with brands, e-preference is based specifically on OSM-based information that manifest
consumers' need for social affiliation and influence, representing the key factor of resource allocation that brands use to develop
effective product strategies. Guided by the PDE, OSM platforms can create value for consumers by enabling them to readily voice
concerns, seek assistance, and to express both negative and positive experiences. Consumers can influence the others' purchase
decisions through the OSM channels in which they favor the products and service on community networks and source credibility
(Straker et al., 2015). Accordingly, e-preference is a need for consumers because of its two-way communication advances. Which
means that greater consumer cognition and experience can be facilitated at the personal level. For example, e-preference of con-
sumers is closely associated with their repurchase intention of Apple's products, they are highly susceptible to modern technological
products and certain tendencies can ensure their desire for the brand, such as offering greater choice, flexibility, and convenience in
preference. To this end, H1b addresses the structure of the e-brand equity―repurchase intention relationship with e-preference
serving as a mediational variable. Thus, the authors expect a positive effect that:
H1b. E-preference appears to mediate the relationship between e-brand equity and repurchase intention, such that e-brand equity
does not have a direct and positive influence on repurchase intention.

2.4. The moderating role of WPPP

For a high technology brand to consistently achieve higher profits, it must create a sustainable competitive advantage, specifically
an understanding that the drivers of consumer willingness to pay translate into the actual purchase behavior (Ligas & Chaudhuri,
2012). In developing countries, consumers no longer purchase products to satisfy functional needs, but also for expressing their
individuality, lifestyle, and identity. As an example of HTP, smartphones provide noteworthiness for consumers via technology-
driven functions and designs; of which, customers can communicate in a particular group displaying their identities and values to
others (Lee et al., 2011). According to Casidy and Wymer (2016), WPPP refers to eagerness to pay more for a particular product brand
than for other brands serving as a function of quality and value perception in which higher prices exert higher quality and value.
From a marketing perspective, WPPP appears to be a measure of the perceived value of consumption or usage experience, and
therefore becoming a means for marketing segmentation (Li & Meshkova, 2013).
In contrast, OSM platforms also generate perplexities due to unverified information and posts related to products and services that
the company provides which in turn adversely affects consumers' perceptions, and in particular increasing their perceived risk.
According to Casidy and Wymer (2016), high perceived risk would cause a reduction in WPPP and reduce the devotion to the brand.
For example, Apple introduced the iPhone 5C as visual art on OSM platforms. As soon it launched, consumers found themselves
disappointed by its out-of-date configuration and non-ID Touch function. Brand managers can increase their brand value by investing
in visual art, which is in conjunction with products, representing modern and high-tech functionalities. However, if consumers have

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little confidence in determining OSM platforms-based information about products then they need additional assurance, or the WPPP
is likely to be reduced. Accordingly, the authors propose the following hypothesis:
H2a. A willingness to pay a price premium (WPPP) negatively moderates the relationship between e-brand equity and visual appeal,
such that the e-brand equity influences visual appeal less than when WPPP is higher.
OSM platforms have been a means for customers to identify and recognize brand offerings, thereby being influential in shaping
their perception and behavior (Ramaswamy & Ozcan, 2016). Customer engagement with OSM and access to information influences
their expectation of companies (Straker & Wrigley, 2016), enabling the determination of whether they prefer and are willing to buy
the brand over others. In the digital age, consumers are increasing their interaction with brands to familiarize themselves, create
interest in and favor the branded products and services. The authors expect that when consumers pay a little more, they will evaluate
the product by synthesizing information to compare to alternatives, while taking into account understanding more about the brand.
Therefore:
H2b. A willingness to pay a price premium (WPPP) positively moderates the relationship between e-brand equity and e-preference,
such that the e-brand equity influences e-preference more strongly when WPPP is higher.
Today, art is orientated as a part of a HTP, such as when furniture is artistically designed (Hagtvedt & Patrick, 2008b). According
to Dion and Arnould (2011), visual appeal indicates that a brand possesses an aura of authenticity resulting in qualities of uniqueness,
distinctness and otherness. As a result, customer reactions and intentions would be influenced profoundly. As judged by Filieri and
Lin (2017), consumers are willing to pay premiums for higher-end products but smartphone companies have to frequently improve
innovative features of the products with art. The authors expect that the relationship between visual appeal and repurchase intention
will be moderated by WPPP. Thus:
H2c. A willingness to pay a price premium (WPPP) positively moderates the relationship between visual appeal and repurchase
intention, such that the visual appeal influences repurchase intention more strongly when WPPP is higher.
The purchase power of networked consumers can be substantially augmented, that is the digital perceived value allows the
capacity to arouse feelings toward the experience on products and services (Kim, Gupta, & Koh, 2011). A greater experience of
customers leads to diversity in coolness and affordance in forming their perceptions and experience about the particular brand
offering (Shin, 2017). For example, consumers experience the variety, selection, and availability of products providing them a
preference at making a purchasing point (Muthitacharoen, Gillenson, & Suwan, 2006). In relation to this, WPPP is explained as
customers perceive that a higher price reflects a better product forming a brand's value and quality, and is considered as a key
measure of preference and behavioral intention (Casidy & Wymer, 2016). In addition, as guided by the PDE, consumers are willing to
pay more when they have a positive interaction with the brand through OSM platforms. WPPP is likely to influence the relationship
between e-preference and repurchase intention. Therefore, the authors expect that:
H2d. A willingness to pay a price premium (WPPP) positively moderates the relationship between e-preference and repurchase
intention, such that the e-preference influences repurchase intention more strongly when WPPP is higher.

3. Methods

3.1. Sample and data collection

The sample consists of 497 smartphone consumers in Vietnam drawn from a social network list to test the research model. Several
reasons prompted this selection. First, the smartphone industry is receiving great interest from investors due to the rise of Vietnam's
economy, particularly as it has lower costs in relation to elsewhere in Southeast Asia such as China, Singapore, or Japan. Second, 72%
of Vietnamese consumers own smartphones and use them to make purchases rather than the conventional computers, and 94% of
consumers use OSM platforms for post and social interaction (Appota, 2017). Thus, a study on smartphone consumers can help HTP
brands manage various aspects of their branding strategy. A valid respondent to participate in the survey was defined as one who had
prior purchase experience of a smartphone brand, specifically the iPhone. A questionnaire form served as the primary means of data
collection. Because the authors used existing scales for measuring the proposed constructs, in-depth interviews with two experts of
brand management and marketing were conducted to verify the validity of each item. Then, the authors pretested with 20 customers.
On the basis of participants' comments, the authors refined some items and developed the final instrument. Next, questionnaires with
general instructions were sent to the key persons of each network. Subsequently, the results of the questionnaire were reported in two
rounds. To examine the representability of the sample to the population, the authors deployed an independent t-test comparing early
and late respondent groups. Results of t statistics of each variable revealed no significant differences (p > 0.05), suggesting that
nonresponse bias is not likely to be a concern. The sample demographics are represented in Table 2.

3.2. Measures

The variables in this research were adapted from existing literature and embedded in the OSM interaction and communication.
More specifically, the authors adapted brand awareness from Huang and Sarigöllü (2012) and brand activity from Keller (2010) in
forming e-brand equity. The authors assessed e-preference on the basis of Alamro and Rowley (2011), and visual appeal on that of Lee

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Table 2
Sample demographics.
Items Categories Frequency (%)

Gender Male 196 (39.4%)

Female 301 (60.6%)
Age 18–25 66 (13.3%)
26–30 98 (19.7%)
31–40 167 (33.6%)
41–50 146 (29.4%)
Above 50 20 (4.0%)
Education College and lower 78 (15.7%)
Bachelor 312 (62.8%)
Master 101 (20.3%)
PhD and higher 6 (1.2%)
Occupation Manufacturing 87 17.5%
Service business 161 32.4%
Public service 147 29.6%
Housework 33 6.6%
Student 65 13.1%
Other 4 0.8%
Income (Vietnamese Dong: VND, 1 VND = 0.000044 US dollar) < 12 million 118 23.7%
12–20 million 229 46.1%
21–30 million 91 18.3%
Over 30 million 59 11.9%
Frequency of changing smartphone within 5 years Not yet 132 (26.6%)
At least once 281 (56.5%)
2–3 times 77 (15.5%)
Over 3 times 7 (1.4%)
Number of owning smartphone 1 289 (58.1%)
2 201 (40.4%)
>2 7 (1.4%)

et al. (2011). Then, the authors also measured WPPP adopted from Casidy and Wymer (2016). The authors adapted repurchase
intention from Sullivan and Kim (2018). All items were measured using a seven-point Likert scale in which 1 indicates strongly
disagree and 7 indicates strongly agree.

3.3. Common method bias (CMB)

The authors tested the possibility of CMB using Harman method. A principal component analysis of six factors with eigenvalues
greater than one, and the first (largest) factor accounts for 47.58% of the variance. As such, no single factor accounted for > 50% of
the variance, suggesting that CMB is unlikely to be a substantive concern in this study.

3.4. Data analysis technique

The authors used partial least squares (PLS) for the data analysis with application of SmartPLS software version 2.0. PLS has
recently become a quasi-standard in marketing research for analyzing the cause-effect relations among the latent constructs (Hair,
Ringle, & Sarstedt, 2011); especially providing flexibility to represent both formative and reflective constructs, which is the case in
the current study. The authors used a bootstrapping function to assess the path significance with a total of 5000 resamples and 497
cases suggested by Hair et al. (2011). To examine the moderating effects, the authors adapted a two-stage PLS procedure.

4. Findings

4.1. Measurement model

The authors assessed the reliability and validity for testing the measurement model (Hair et al., 2011). As shown in Table 3,
composite reliabilities for each of the variables were higher than 0.70, suggesting a good reliability. The authors examined the
average variance extracted (AVE) for each construct > 0.50. In addition, all the retained items had loadings greater than the
threshold 0.70 cutoff and they loaded well on their respective factors in Table 4. Accordingly, a good convergent validity occurred in
this research.
In Table 3, the correlation matrix was represented, finding that the largest correlation was 0.67, less than the 0.71 recommended
by MacKenzie, Podsakoff, and Podsakoff (2011). The result also showed that the square root of AVE of each construct was higher than
that of its correlation with other constructs. In addition, as shown in Table 4, all of the items loaded well onto their own construct and
poorly onto other constructs. As a result, a good discriminant validity was confirmed in this research.

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Table 3
Construct reliability and correlation.
Mean SD AVE CR 1 2 3 4 5 6

1. Brand awareness 5.22 0.93 0.68 0.91 0.82

2. Brand activity 4.76 1.05 0.76 0.92 0.16 0.87
3. Visual appeal 4.83 1.13 0.75 0.90 0.57 0.09 0.86
4. E-preference 4.37 1.21 0.79 0.92 0.36 0.23 0.45 0.88
5. WPPP 4.94 1.52 0.77 0.94 0.31 0.04 0.34 0.39 0.87
6. Repurchase intention 4.19 1.45 0.80 0.94 0.46 0.08 0.59 0.67 0.56 0.89

Note: SD = Standard deviation; CR = Composite reliabilities; diagonal values represent square root of AVE (average variance extracted).

Table 4
Item loadings and cross loadings.
Items BAW BAC VIS EPR WPPP RPI

Brand awareness (BAW) BAW1 0.81 0.15 0.47 0.30 0.24 0.37
BAW2 0.85 0.12 0.45 0.28 0.29 0.37
BAW3 0.87 0.12 0.51 0.33 0.25 0.42
BAW4 0.81 0.12 0.47 0.33 0.24 0.41
BAW5 0.79 0.18 0.47 0.27 0.27 0.35
Brand activity (BAC) BAC1 0.16 0.89 0.10 0.19 0.01 0.06
BAC2 0.16 0.91 0.10 0.24 0.05 0.08
BAC3 0.13 0.88 0.07 0.21 0.06 0.08
BAC4 0.12 0.82 0.08 0.19 0.03 0.07
Visual appeal (VIS) VIS1 0.51 0.07 0.87 0.34 0.27 0.44
VIS2 0.55 0.06 0.91 0.39 0.28 0.56
VIS3 0.45 0.12 0.85 0.45 0.34 0.56
E-preference (EPR) EPR1 0.36 0.21 0.43 0.91 0.36 0.60
EPR2 0.39 0.23 0.43 0.90 0.35 0.60
EPR3 0.23 0.19 0.35 0.86 0.35 0.62
Willingness to pay a price premium (WPPP) WPPP1 0.23 0.05 0.28 0.36 0.89 0.50
WPPP2 0.19 0.02 0.23 0.34 0.89 0.47
WPPP3 0.23 0.05 0.25 0.32 0.88 0.44
WPPP4 0.36 0.02 0.36 0.36 0.86 0.52
WPPP5 0.34 0.04 0.36 0.37 0.87 0.54
Repurchase intention (RPI) RPI1 0.41 0.07 0.52 0.65 0.51 0.88
RPI2 0.50 0.11 0.63 0.60 0.52 0.90
RPI3 0.33 0.05 0.44 0.58 0.50 0.89
RPI4 0.43 0.06 0.55 0.61 0.51 0.92

4.2. Hypothesized results

In Fig. 2, the model explains 34.8% of the variance in visual appeal, 26.3% of that in e-preference, and 63.2% of the variance in
repurchase intention. First, as shown in Fig. 2, focusing on the mediating effects of visual appeal and e-preference, there is a strong
convergence in the findings from the sample. Specifically, e-brand equity appears to affect visual appeal (H1a; β = 0.553, p < 0.001)
and e-preference (H1b; β = 0.393, p < 0.001). In addition, visual appeal appears to be very strongly related to repurchase intention
(H1c; β = 0.330, p < 0.001) while e-preference also appears to facilitate repurchase intention (H1d; β = 0.506, p < 0.001).
Therefore, it appears important for managers to emphasize the need for ongoing tracking and responding to consumers' repurchase

Fig. 2. Proposed research model results.

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Table 5
Summary of results.
Visual appeal E-reference Repurchase intention

Coefficient t-value Coefficient t-value Coefficient t-value

Independent variable
E-brand equity 0.553⁎⁎⁎ 12.92 0.393⁎⁎⁎ 8.51 0.066 1.39

Mediator variables
Visual appeal 0.330⁎⁎⁎ 6.88
E-reference 0.506⁎⁎⁎ 11.98

Moderator variable
WPPP 0.581⁎⁎⁎ 4.16 −0.176 1.22 0.188 1.44

Interaction effects
E-brand equity x WPPP −0.479⁎⁎⁎ 2.92 0.588⁎⁎⁎ 3.71
Visual appeal x WPPP 0.171 0.73
E-reference x WPPP −0.04 0.19

Model statistics
R2 30.60% 15.50% 56.80%
R2 change 34.80% (+4.20%) 26.30% (+10.80%) 63.20% (+6.40%)
Effect size (f2) 0.06 0.14 0.17

⁎⁎⁎
p < .001.

intention with regard to visual appeal and e-preference while possessing e-brand equity.
Second, H2a, which proposed that WPPP negatively moderates the relationship between e-brand equity and visual appeal, was
supported (β = −0.479, p < 0.001). H2b was also supported that WPPP positively moderates the relationship between e-brand
equity and e-preference (β = 0.588, p < 0.001). However, the patterns of results for the WPPP across visual appeal (H2c; β = 0.171,
t = 0.73) and e-preference (H2d; β = −0.04, t = 0.19) on repurchase intention were different, not supported. In terms of main
effects, as represented in Table 5, WPPP appears merely to affect visual appeal (β = 0.58, t = 14.16), while not supporting its effects
on e-preference (β = −0.176, t = 1.22) and repurchase intention (β = 0.188, t = 1.44).
Further, the strength of moderating effects was examined by comparing the proportion of variance explained from the main and
moderating effect models, determining whether the significant moderating effects are substantive through effect size (f2). As shown in
Table 5, the interaction effect of WPPP with e-brand equity significantly increased R2 of visual appeal by 4.20%, indicating a small
effect size (f2 = 0.06). The interaction effect of WPPP with e-brand equity significantly increased R2 of e-preference by 10.80%,
indicating a medium effect size (f2 = 0.14). Interestingly, when WPPP interacted with visual appeal and e-preference, did not
significantly affect repurchase intention, but did then increase R2 of repurchase intention by 6.40%, also indicating a medium effect
size (f2 = 0.17). Accordingly, the results confirmed the moderating effects.

5. Conclusion

5.1. Research implication

The purpose of the authors was to empirically test several hypotheses advanced in the literature regarding mediating roles of
visual appeal and e-preference, and the moderating effect of WPPP in the e-brand equity―repurchase intention link. Subsequently,
the findings revealed several critical implications for marketing and brand management research. First, the authors have adapted the
PDE to ground the proposed model for driving the focal constructs, explaining and predicting the main effects and moderating effects,
resulting in a sufficient contribution. This is also consistent with the result of Palmatier (2016).
In a digitalized world, there has been a strong resurgence of academic interest in the brand equity concept and its implementation
revolving around OSM integrations (Hsieh & Chang, 2016; Ramaswamy & Ozcan, 2016). The authors have furthered that interest by
providing a foundation for developing e-brand equity, and then examined the relationship between e-brand equity and repurchase
intention in the context of HPT. The authors renovate this relationship by integrating and confirming the mediating roles of visual
appeal and e-preference variables while disconfirming a direct effect of e-brand equity to repurchase intention. These results appear
to revise those of Filieri and Lin (2017), indicating that e-brand equity exerts a substantial indirect effect on repurchase intention
through visual appeal and e-preference. Future studies should consider continuously or periodically innovating and reorienting these
proposed effects due to the dynamic of most markets.
Next, the authors set apart this study from existing similar concepts by adding WPPP as a moderating variable. As shown in the
findings, WPPP negatively moderates the relationship between e-brand equity and visual appeal, such that the positive effect of e-
brand equity on visual appeal is weaker when WPPP is higher. This result creates a tension for this research making it non-trivial
because an opposing mechanism that offers trade-offs has been found and evaluated. By drawing from the PDE, the findings advance
a further understanding of the conditional effect of e-brand equity by specifying WPPP in the OSM context as an important condition
to assess how e-brand equity influences visual appeal. As evidenced in the findings, e-brand equity has a much less important

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influence on visual appeal. The authors suggest that facilitating e-brand equity in a HTP brand might not be central if consumers have
a WPPP.
The authors have also witnessed that WPPP positively moderates the relationship between e-brand equity and e-preference, such
that the effect of e-brand equity on e-preference becomes stronger when WPPP is higher. It implies that e-brand equity should be an
important source of e-preference generation under the condition of high WPPP. As such, consumers may consider more about the
brand awareness and interaction to guarantee the ability of their decision toward the HTP brand through OSM information if there is
enough WPPP perceived. To this end, the authors suggest that e-brand equity could have a significant effect on e-preference when
WPPP is higher.

5.2. Managerial implication

As shown in the findings, the authors have several recommendations for HTP brand managers. Given the Internet-driven op-
portunity to add new features and functionality to the brand, managers should comprehensively digitize what they are doing. First,
managers must reinforce the proliferation of e-brand equity based on the integration of OSM to serve customers. The authors re-
commend that brand managers can create sufficient e-brand equity through brand awareness and brand activity. Specifically, a highly
salient e-brand equity should consists of depth and breadth of brand awareness enabling a consumer to make a sufficient purchase
and always think of the brand. Also, influences derived from the interactivity experience of a brand activity provides a higher
commitment and affirmation of consumers. Interactive marketing communications (IMC), in particular, provide brands and con-
sumers with different options and potential opportunities for positive brand evaluations. IMC allows brand managers to approach
target consumer research and determination, channel selection and integration, strategic message creation, and measurement and
control, which in turn, guarantee a positive impression and behavioral intention of the consumer. For example, brand managers can
send tailored messages to different consumer segments to attract and inform them, resulting in their special interest and behavior
from user-friendly OSM platforms.
Furthermore, the empirical findings indicate that e-brand equity neither significantly nor directly affect repurchase intention.
However, e-brand equity exerts a strong and positive indirect effect on repurchase intention through visual appeal and e-preference.
Brand managers can increase their brand profitability by increasing the benefits they provide to their customers. Because managers
increasingly face more challenges related to interactivity, individualization, and self-actualization, value added to product and
service is increasingly vital for ensuring the repurchasing intention of the consumer. In this context, visual appeal increases HTP
brand recall and differentiation, resulting in unique experiences for its customers, while e-preference demonstrates a key step in
making their choices and decisions. To this end, managers should more strategically build resources of visual appeal and e-preference
according to the level of WPPP. Brand managers must reconfigure that WPPP is one of the key value dimensions of the brand, which
represents a consumer's familiarization, utilization, and trust toward that previously purchased brand. They could first survey patrons
to assess their WPPP. If the WPPP is perceived to be relatively effective, brand managers should invest more resources to build e-
preference with customers, despite the evident challenges of doing so.

5.3. Limitations and further recommendations

In this study, several limitations remain. First, the sample was drawn from Vietnam focusing on a single industry. The char-
acteristic of the examined smartphone consumers might not apply to those in other countries and cultures that are distinct from
Vietnam. Whenever possible, attempting to identify cross-cultural differences in a more diverse industry should be a sufficient
approach for a future study.
Second, although the proposed model included main, mediating, and moderating effects to make a sufficient contribution to the
research subjects, it neglected a control effect. If control variables such as consumer's technological skills and creativity were in-
cluded, they would help ensure that covariance with other variables did not occur in the empirical results. Therefore, future studies
can conduct some technological control variables in the model analyst.
Third, the authors failed to confirm the direct effect of e-brand equity to the consumer's repurchase intention, reversing com-
pletely the empirical findings of most previous studies. That is because, perhaps, technological dynamism and OSM's profound
development have recently reshaped the behavioral intention of customers in which they have acquired more value-added in pro-
ducts and service. Future research should develop a valid measure of OSM mechanism and assess its influence on the e-brand and
repurchase intention link.
Finally, the moderating effects of WPPP on the mediating variables (visual appeal and e-preference) to repurchase intention were
statistically insignificant even though its satisfactory reliability and validity were exhibited. Future research should consider im-
proving the WPPP measures by developing additional items in the virtual world of the research subjects. The results may be more
generalizable when testing the proposed moderating effects under other conditions.

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Loc Tuan Le is a Vice Rector at University of Economics and Law of VNU-HCM, Vietnam. He received his PhD in economics at Saint-Peterburg University of Economics
and Finance, Russia. His research themes include economics in globalization and marketing econometrics.

Lobel Trong Thuy Tran is a Lecturer in the Faculty of Business Administration at Ton Duc Thang University in Vietnam. He received his PhD. in the Department of
Business Administration at Asia University in Taiwan. His specializations include marketing research, strategic management, and organizational behavior.

Ly Minh Thi Pham serves as the Dean of Faculty of Business Administration, Ton Duc Thang University, Vietnam. She received her Ph.D. at Saint Petersburg State
University, in Russia. Her research interests include topics in the fields of world economy and international economic relations, marketing, human resource man-
agement.

Doan Thuc Dinh Tran studied at the Faculty of Business Administration, Ton Duc Thang University, Vietnam. She has worked as MICE Assistant and later as
Marketing Assistant since 2014 at TerraVerde Travel. In addition, she works for Christie's Auction House in Hong Kong as English-Vietnamese Interpreter regarding
Vietnamese Fine Arts & Contemporary Arts. Her research interests include marketing, public relations, Vietnamese culture, and fine arts and art history.

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