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Driving brand
The role of consumer-brand loyalty
engagement towards driving
brand loyalty
Mediating effect of relationship quality 987
Kishalay Adhikari and Rajeev Kumar Panda Received 18 March 2019
Revised 22 June 2019
School of Management, National Institute of Technology, Rourkela, India Accepted 17 July 2019
Abstract
Purpose – The present research attempts to empirically examine the influence of consumer-brand
engagement, its potent antecedents, and relationship quality towards creating and enhancing brand loyalty of
automobile brands in Indian context.
Design/methodology/approach – Primary data through survey questionnaires were used to gather
empirical data from 443 automobile consumers, out of which 417 samples were included in the final analysis.
Structural equation modelling technique was used for assessing the hypothesized direct and indirect
relationships among the constructs.
Findings – The empirical findings exhibit consumer involvement and brand interactivity contributes
positively and significantly towards consumer-brand engagement, while self-brand image congruity does not
significantly influence consumer-brand engagement. Further, mediation analysis results show that
relationship quality partially mediates the linkage between consumer-brand engagement and brand loyalty.
Research limitations/implications – The outcomes of this research may provide novel insights and
contribute to the limited body of knowledge regarding consumer-brand engagement. In addition, the findings
may assist the automobile brand managers and market strategists to design strategies aimed at developing
long-term consumer relationships.
Originality/value – This empirical research assesses the mediating effect of relationship quality in the
linkage between consumer-brand engagement and brand loyalty for automobile brands, and to the best of our
knowledge, has not been attempted by prior researchers in this domain.
Keywords Consumer-brand engagement, Brand interactivity, Relationship quality,
Consumer involvement, Brand loyalty
Paper type Research paper
Introduction
Automobile brands traditionally have moderate consumer loyalty rate; with an average
brand enjoying a loyalty rating of 42.58 per cent (J and L Marketing, 2017). In this context,
the vitality of consumer retention enhances because of average product costs over $40,000
and the replacement cycle occurs mostly after four or more years (Forbes, 2011). The need
and desire to improve these figures are rather strong among the global automobile brands.
Global Automotive Executive Survey conducted by KPMG (2017) revealed 83 percent of the
executives consider that the industry will undergo major business model disruption in the
coming five years. Also, the survey reports points every third car-owner strongly believes
they would no longer own cars by the year 2025, which makes a strong case for creating and Journal of Modelling in
Management
maintaining brand loyalty. For addressing this situation, automobile brands need to think Vol. 14 No. 4, 2019
pp. 987-1005
beyond the conventional ways of attracting potential consumers and retaining the existing © Emerald Publishing Limited
1746-5664
ones. Keeping this backdrop in mind, consumer-brand engagement has emerged a crucial DOI 10.1108/JM2-03-2019-0067
JM2 concept to maintain and build lasting consumer relationships. According to Levine et al.
14,4 (2001), “stimulating a consumer’s engagement with a brand is the only way to increase
brand loyalty, and therefore, the best measure of current and future performance.” Similar
notions suggest engagement works as a catalyst that converts prospects to consumers,
consumers to loyal consumers, and loyal consumers to brand advocates” (Duffy Agency,
2015).
988 The concept of engagement is not new; however, its adoption in the branding literature
has gained momentum in recent times. Foundational works in consumer-brand engagement
(Hollebeek, 2011; Vivek et al., 2012; Gambetti et al., 2012; France et al., 2016; Dessart et al.,
2016; Fernandes and Moreira, 2019; Singh and Srivastava, 2019) render both theoretical and
empirical support towards its significant and positive linkage to brand loyalty. Based on
extant literature review, research models of Vivek et al. (2012), Brodie et al. (2013), Hollebeek
and Chen (2014), Dwivedi (2015) and Islam et al. (2018) have been found rational in assessing
consumer-brand engagement and consequent outcomes. The application of consumer-brand
engagement has been majorly confined to the service sector (France et al., 2016; Leckie et al.,
2016; Jarvi, 2019) and predominantly online behaviour (Hollebeek and Chen, 2014; Loureiro
et al., 2017; Gong, 2018; Pongpaew et al., 2017; Harrigan et al., 2018; Machado et al., 2019).
However, there are seminal works that highlight the vitality of consumer-brand engagement
with respect to concerning the manufacturing sector (Dwivedi, 2015; Risitano et al., 2017).
Further, empirical research studies (Thaichon and Quach, 2015; Choi et al., 2017) in the
engagement domain have pointed out relationship quality holds the potential to enhance
brand loyalty. Despite this denotation, there appears to be a dearth of studies, which
empirically supports the contribution of relationship quality towards inducing brand
loyalty. Along the same lines, the mediating role of relationship quality in the linkage
between consumer-brand engagement and brand loyalty still remains under-explored,
especially in the manufacturing context. To effectively address these research gaps, the
present study makes a novel attempt to empirically validate the influence of consumer-
brand engagement on creating and enhancing brand loyalty in the automobile brands in the
Indian context. Also, this research examines the mediating effect of relationship quality in
the linkage between consumer-brand engagement and brand loyalty. The following sections
cover the literature review, hypothesis formulation, methodology, findings and discussion.
Literature review
Consumer-brand engagement
The emerging concept of consumer-brand engagement finds its theoretical roots from the
domain of relationship marketing and interactive service marketing. Specifically, Vargo and
Lusch’s (2008) service-dominant logic (S-D logic) that facilitates marketing relationships
established on two facets- consumers’ interactivity and co-creative experiences with diverse
stakeholders such as companies and fellow consumers remain the core reason behind the
growing attention towards consumer-brand engagement concept. Recent works suggest
that conceptualization of consumer-brand engagement needs to reckon both psychological
and behavioural dimensions (Machado et al., 2019; Fernandes and Moreira, 2019;
Algharabat et al., 2019; Islam et al., 2018). In particular, So et al. (2014) argues that theoretical
sphere of consumer-brand engagement requires something more than just evaluating
consumer-brand engagement, as consumers’ participation in consumer-brand engagement
activities does not reflect true engagement with the respective brand. For instance, a
consumer may show him/her engagement towards a brand through participation in brand
discussion forums for various reasons e.g. product information needs, but they might not be
actually engaged or connected with the brand at a psychological level. True consumer-brand
engagement, therefore, requires an imperishable psychological connection with the brand, in Driving brand
addition to mere behavioural participation. Hollebeek and Chen (2014, p. 154) define loyalty
consumer-brand engagement as “consumer’s positively valence brand-related emotional,
cognitive and behavioural activity during or related to focal consumer/brand interaction.” In
this definition, consumer-brand engagement process comprises of the hierarchical effects of
cognitive processing, affection and activation. Cognitive-processing relates to the brand-
oriented thoughts that the consumer processes during the brand/consumer interaction;
while affection refers to the degree of positive brand-related affect in specific brand/ 989
consumer interactions. Finally, activation exhibits time, energy and effort that are invested
in specific brand/consumer interactions. Enhanced levels of consumer-brand engagement
has substantially conducive towards attainment of brand performance outcomes such as
sales growth, reduced operational costs, positive word-of-mouth, brand referrals, superior
profitability and brand loyalty (Singh and Srivastava, 2019; Algharabat et al., 2019; Fang,
2017; Dwivedi, 2015; Hollebeek and Chen, 2014; Bijmolt et al., 2010; Sawhney et al., 2005).
The potential antecedents of consumer-brand engagement are discussed in the following
section that forms a base for conceptualizing the hypothesized model.
Brand interactivity
The concept of brand interactivity is relatively novel and deals with the consumers’
perception regarding the willingness and true desire of the brand to integrate with them
(France et al., 2016; Shao et al., 2015). In this respect, continuous communication from
the brand-side projects the brand’s eagerness to interact and relate to the consumers.
The evaluation of brand interactivity from the consumer perspective occurs at two
broad levels, technical assistance provided by the brand for facilitating interaction and
showing a genuine inclination to nurture connectedness. From the consumer
perspective, brand interactivity becomes utmost important in the engagement arena,
where interaction is the focal point of consumer-brand engagement (Brodie et al., 2011;
Lawrence et al., 2013; De Vries and Carlson, 2014; Merrilees, 2016; France et al., 2018).
Consumers are getting actively involved in more and more interactions with respective
brands (Merz et al., 2009; Islam et al., 2018; Fernandes and Moreira, 2019), as a result,
enhanced brand interaction has a positive influence over customer-brand relationship
(Jee and Lee, 2002; Islam et al., 2018).
Conceptual evidences of the effect of interactivity are highlighted in the prior research
studies on brand engagement (Brodie et al., 2011; Schultz, 2017; France et al., 2018). Prior
qualitative studies highlight that highly consumers willingly become involved in two-way
conversations and more personalized relationships with highly interactive brands (Sawhney
et al., 2005; Islam and Rahman, 2017; Schultz, 2017). Once the consumer perceives the brand
as interactive, that feeling of being welcomed gets inculcated within them, and hence, they
are motivated to engage with the brand. Following this logic, Merrilees and Fry (2003) put
forward the notion consumers develop a sense of value and trust regarding the brand, which
further strengthens the consumer-brand relationship, and, in turn, leads to engagement
state. Despite strong conceptual grounds and theoretical reasoning, brand interactivity has
remained empirically under-explored antecedent of consumer-brand engagement. Therefore,
in the present study, brand interactivity is included to provide a novel perspective that it has
a positive and direct effect on consumer-brand engagement. Hence, the following hypothesis
is postulated:
H4b. Relationship quality has a positive and significant linkage with brand loyalty.
The linkage of the above-mentioned sub-hypotheses provides a foundational base for
investigating the mediation effect (Baron and Kenny, 1986; Cheung, 2007) of relationship
quality in the linkage between consumer-brand engagement and brand loyalty (Figure 1).
Therefore, we posit the hypothesis that:
Relationship
Brand Quality
H1
Interactivity H4a
H4b
Consumer CBE
Involvement H2 Brand loyalty
Figure 1. H4c
Hypothesized Self-brand
research mode image congruity H3
Questionnaire development Driving brand
At the initial level, the research questionnaire needs to ensure adequate content validity. In this loyalty
regard, the measurement items of the questionnaire for this study minutely followed the
literature. Bharati and Chaudhury (2004) suggest content validity explains the
comprehensiveness and representativeness of the research constructs. The scales for
measuring consumer-brand engagement were drawn from the study of Hollebeek and Chen
(2014), while, questions related to relationship quality were adapted from Nyffenegger et al.
(2015). Measurement items dealing with brand interactivity and self-brand image congruity
993
were based on the works of France et al. (2016). Finally, the indicators of consumer involvement
and brand loyalty were taken from the research works of Dwivedi (2015) and France et al.
(2016). The assessment of psychometric properties of scale followed the standard procedure
(Hair et al., 2010). Table II shows the measurement items used in the final questionnaire.
Median age 31
Gender
Male 248 (64.08)
Female 139 (35.92)
Income distribution (in Rs.)
Less than 5 lakhs 59 (15.25) Table I.
5-10 lakhs 85 (21.96) Demographic
10-15 lakhs 106 (27.39) characteristics of the
Above 15 lakhs 137 (35.40) respondents
JM2 Construct Measurement items
14,4
Brand interactivity BIN1 Automobile Brand [X] often listens to what I have to say
BIN2 Automobile Brand [X] motivates me for directly communicating
with it
BIN3 Automobile Brand [X] responds to my queries in a quick and
efficient manner
994
Consumer involvement CINV1 I am interested a lot in Automobile Brand [X]
CINV2 I am fascinated by Automobile Brand [X]
CINV3 I am personally involved with Automobile Brand [X]
Self-brand image congruity SBIC1 Automobile Brand [X] reflects who I am
SBIC2 Automobile Brand [X] resembles to me in true sense
SBIC3 Automobile Brand [X] is a lot like me
Consumer-brand engagement CBE1 Automobile Brand [X] makes me feel positive and happy
CBE2 Automobile Brand [X] makes me think about it
CBE3 Automobile Brand [X] makes me feel proud
CBE4 Automobile Brand [X] keeps me engrossed while dealing with it
Relationship quality RQ1 Automobile Brand [X] treats me in a special way rather than just
other consumer
RQ2 Automobile Brand [X] exactly meets my expectations
RQ3 Automobile Brand [X] is honest and reliable
RQ4 Automobile Brand [X] is safe and secure to use
RQ5 I am consistently satisfied with the decision to use Automobile
Brand [X]
RQ6 Automobile Brand [X] can always count on me
RQ7 I will stay with Automobile Brand [X] through good and bad times
Brand loyalty BL1 I would definitely recommend Automobile Brand [X] to family and
peers
BL2 I am willing to continue using Automobile Brand [X] in future
BL3 I will stick to Automobile Brand [X] even if I get better deals on
Table II. other automobile brands
Questionnaire used BL4 I would spread good things about Automobile Brand [X] while
in the data analysis talking to my friends
confirmatory factor analysis procedure relates to the fact that it allows for model fit indices of
both hypothesized models (single-factor and multi-factor). Also, provides a chi-square (x 2)
difference test to point out the discrepancies (if any) between the respective models. In a situation,
where the model fit indices and x 2 differences of both the models, evidently show that single-
factor model is significantly not as better performing compared to the multi-factor model, then
the presence of common method bias in the data set can be assumed to be null (Byrne, 2016).
Table III exhibits good model fit for the measurement model as all the model-fit values
are conforming to the recommended levels. The significant differences between the x 2
values of single-factor and multi-factor models clearly highlight that the single-factor model
indicates a bad fit compared to the multi-factor model. Hence, the multi-factor model is more
reliable in terms of good fit in this case. In addition, the rest of the model-fit values exceed
the threshold limit of index difference of 0.001 (Byrne, 2016).
measurement model with a common latent factor appended to it. Also, all the measurement
items are loaded additionally to their respective theoretical factor (Lindell and Whitney, 2001).
Further, the coefficients between the path that links the common latent factor and respective
measurement items were equally constrained, the reason for this being, the effect of common-
method bias would be similar across the items. Subsequently, the critical estimation of both the
measurement models adequately proves the non-existence of common-method bias as the
respective models are statistically different. Table IV indicates the model-fit values for the
measurement model (with and without common latent factor). Based on these values, it can be
interpreted that both the measurement models are significantly different from each other.
Moreover, the difference of x 2 estimation (D x 2)* indicates the value of 9.047 having 1 degree of
freedom that is higher than the threshold level > 3, therefore, exhibits a significant change in
the respective measurement model (Hair et al., 2012). In addition, DCFI = 0.016, DRMR = 0.007,
DRMSEA = 0.003 values are all higher than the recommended level i.e. 0.001. Consequently, the
overall comparison of model fit indices along with low path coefficients does not exhibit
extreme influence on the measurement items.
The additional approach for common method bias assessment, as suggested by Bryne
(2010), required the measurement models (with common latent factor) and measurement
model (without common latent factor) to be evaluated individually. Meanwhile, their std.
path coefficients values were also recorded separately. Table V clearly points out that the
difference between the std. path coefficients actually varies among 0.070-0.146, which
x2 342.311 351.358
Df 229 230
CMIN/DF 1.495 1.528 Table IV.
CFI 0.965 0.966
RMSEA 0.045 0.042
Model-fit indices for
SRMR 0.065 0.058 measurement models
(with and without
Note: Calculation of x 2 difference D x 2/Ddf = (351.358 342.311)/(230 229) = 9.047/1 = 9.047 CLF)
JM2 Measurement Standardized estimates (without common Standardized estimates (with
14,4 item latent factor) common latent factor) Change
implies a common latent factor can explain the maximum variance of 2.13 per cent
(0.146*0.146 = 0.0213) for a measurement item. In total, the minimal differences in std. path
coefficients extend empirical support to the argument of the non-existence of common
method bias in the present data set.
BINT 0.772
RQ 0.396 0.802
BL 0.473 0.569 0.809
CBE 0.436 0.566 0.515 0.835
CINV 0.108 0.128 0.014 0.161 0.714
SBIC 0.054 0.181 0.026 0.060 0.046 0.809
Notes: Diagonal values in italics represent square root of the AVE values; BINT-brand interactivity; RQ- Table VII.
relationship quality; BL-brand loyalty; CBE-consumer-brand engagement; CINV-consumer involvement; Discriminant validity
and SBIC-self-brand image congruity of the constructs
consumer. In this context, consumers perceive that the automobile brand effectively responds to
their specific requirements and participates in a two-way conversation. Accordingly, consumers
feel that the automobile brand is more open to personalized relationships, therefore, they also
reciprocate in the same manner. Consequently, brand interactivity emerges as a vital determinant
of consumer-brand engagement in the modern-day branding domain. The construct of consumer
involvement (b = 0.472, t-values = 6.097, p-value < 0.001) indicates maximum importance
towards predicting consumer-brand engagement, supporting H2, which clearly highlights that
involvement of the consumers plays a crucial role in shaping engagement. This finding seems
interesting as consumers perceive the automobile brand is highly valuable and relevant,
therefore, they search for informational cues of the respective brand. In addition, this finding
JM2 Construct
14,4 Research hypotheses relationships Standardized b values t-value Decision
Theoretical implications
The present research offers novel insights into the existing brand engagement and specifically
to the brand engagement literature in multiple ways. First, our research provides empirical
Structural
relationship Total effects Direct effect Indirect effect Sobel’s Z value Mediation type
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Corresponding author
Kishalay Adhikari can be contacted at: kishalayadhikary@gmail.com
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