Professional Documents
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SPIROS GOUNARIS
has a PhD from Athens University of Economics and Business, and is an assistant professor of marketing at the
Department of Marketing and Communication at Athens University of Economics and Business. His research
interests pivot around consumer behaviour, satisfaction and loyalty, service quality, tourist marketing,
business-to-business marketing and market orientation development. His work has been published in many
journals.
VLASIS STATHAKOPOULOS
has a PhD from the University of Arizona, and is an associate professor of marketing at the Department of
Marketing and Communication at Athens University of Economics and Business. His work has been published in
a number of journals and been included in various research proceedings. His research interests include marketing
management and strategy, sales management, services marketing, and consumer satisfaction and loyalty.
Abstract
The authors consider the relationships among characteristics associated with the consumer (risk
aversion and variety seeking), the brand (brand reputation and availability of substitute products),
the social environment (social group influences and peers’ recommendations), four types of loyalty
(premium loyalty, inertia loyalty, covetous loyalty and no loyalty), and four consumer-related
behaviour types (word-of-mouth communication, buy alternative brand, go to different store and buy
nothing). To test the hypothesised relationships a survey of Greek consumers was conducted. The
findings provide general support for the postulated linkages among the above variables. Implications
for marketing practice and directions for future research are discussed.
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GOUNARIS AND STATHAKOPOULOS
more accurate definition and thus the different types of brand loyalty.
operationalisation of brand loyalty. After discussing the findings and their
Hence the first objective of this paper managerial implications, this paper
is to conceive a better definition concludes with study limitations and
of brand loyalty and validate its directions for future research.
operationalisation.
Furthermore, until now there have
been few studies that have examined TYPES OF LOYALTY
the antecedents of brand loyalty (for The authors’ review of past literature
example, Dick and Basu,13 Ha14 and suggests that brand loyalty has been
Hog et al.15). Hence the second viewed from three different, albeit
objective of this study is to add to this complementary, perspectives, namely:
stream of research by empirically the behavioural, the attitudinal and the
examining the role of context in reasoned action perspectives.
shaping the development of brand More specifically, the behavioural
loyalty. Finally, a third objective of this perspective has conceptualised brand
manuscript is to empirically examine loyalty in terms of repeated pur-
the effects of brand loyalty on con- chases (for example, Cunningham19
sumers’ behaviour. For instance there is and Kahn et al.20). In fact, several
empirical evidence that demonstrates models have been proposed in the
that loyalty is not necessarily reflected literature in order to study brand
upon the systematic purchase of a loyalty from the behavioural perspec-
single brand.16 In fact, researchers have tive, the Dirichlet model being one of
long questioned whether the systematic the most prominent.21–23 These ap-
purchase of a single brand is the result proaches model the consumers’ faithful
of increased levels of loyalty to this enactment of a promise to consistently
brand or whether it is the outcome of purchase only one brand, although
loyalty to a store which carries a they fail to model the reason(s) behind
limited number of brands for a given this behaviour.
product category.17 Moreover, empiri- One possible insight could be
cal research has demonstrated that found in the attitudinal perspective in
brand loyalty does not result only in a conceptualising loyalty. According to
specific purchase pattern. For instance, this perspective, brand loyalty con-
it can also bring about positive word- sists of a strong internal disposition
of-mouth communication, which is towards a brand leading to repeated
not necessarily tied with the purchase purchases.24–26 As such, the attitudinal
of the brand to which the consumer approach conceives brand loyalty based
feels loyal.18 on stated preferences, commitment, or
The rest of the paper is organised as purchase intentions. One would ex-
follows. First, the different types of pect attitudinal and behavioural brand
brand loyalty are discussed. Next, the loyalty to be positively correlated,
authors advance a conceptual model although not perfectly, otherwise there
and associated research hypotheses. would be little need for different
Then a description is given of an concepts.27 Thus an increase in at-
empirical study designed to test the titudinal brand loyalty should lead to an
hypotheses and compare the effects of increase in behavioural brand loyalty.
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ANTECEDENTS AND CONSEQUENCES OF BRAND LOYALTY: AN EMPIRICAL STUDY
Another possible explanation can, This then implies that the attitudinal
however, be derived from the theory perspective is of limited value in grasp-
of reasoned action. According to this ing the notion of loyalty. If, however,
perspective, the consumer’s behaviour there are changes in the marketplace, as
may be influenced by social pressures, is often the case (for example, a new or
thus explaining how a consumer’s improved product is introduced, and
brand attitude may be unfavourable, there is increased perceived risk), the
while the consumer repeats the pur- consumer is likely to engage in a
chases of the particular brand. In such decision-making process, breaking the
a case, the consumer’s brand loyalty cycle of habitual purchases.
would be superficial.28 Recognising the The cycle of purchases may or may
above difficulties in defining and ex- not break, however, if the consumer
plaining brand loyalty, Ha29 proposed holds strong positive sentiments and
the theory of reasoned action to identifies with the brand. Including the
explain brand loyalty. According to the attitudinal perspective in conceptualis-
reasoned action paradigm — based on ing loyalty is useful, since it allows the
the theory of reasoned action, intro- decision-making process occurring in
duced by Fishbein30 — brand loyalty is the consumer’s mind during the pur-
conceived as a notion that is dependent chase to be more realistically described.
on normative influences (such as in- It is the cognitive activities that one
fluences deriving from social peers). describes with this perspective.
These influences, in turn, are reflected Similarly, the cycle of purchases may
in the behavioural consequences of or may not break because of pres-
loyalty.31,32 According to this view, one sures exercised by the consumer’s
may hold a favourable attitude towards social environment. Thus embodying
a brand but still not purchase it because the reasoned action approach in the
of not being able to afford it, a partner proposed conceptualisation recognises
disliking the brand, or for many other the fact that there are some situa-
reasons.33,34 Such an individual, al- tions where consumers’ behaviour is
though having never actually pur- not fully under their control, but is
chased the brand, promotes it in public, influenced by the expectations of
recommends it, and compels others to relevant others.
buy it. This situation is similar to the Therefore, one could conceive
theoretical discussion by Oliver35 of the brand loyalty as comprising three
loyalty phases, and particularly the dimensions. Each of them determines
cognitive phase, where loyalty is based the type of loyalty a consumer will
merely on ‘brand belief’ and not on exhibit towards a brand. For instance,
brand experience. a consumer who is unfavourable to the
For the purposes of this research, a purchase of a certain brand may still
conceptualisation of loyalty is adopted purchase the brand. This loyalty
that attempts to combine all three behaviour is likely to be converted into
approaches to brand loyalty in ex- a behaviour of switching the brand
plaining purchasing behaviour. Thus, when the consumer is no longer forced
incorporating the behaviour paradigm to keep purchasing the brand. Thus the
suggests that repeat purchases are often following four generic types of brand
the outcome of habitual behaviour. loyalty can be identified: ‘no loyalty’,
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GOUNARIS AND STATHAKOPOULOS
High
COVETOUS PREMIUM
Emotional attachment
High Low High
s Purchasing behaviour
uence
l infl
cia
So
NO INERTIA
Low LOYALTY
Figure 1 A conceptualisation of loyalty based on purchasing behaviour, emotional attachment and social influences
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ANTECEDENTS AND CONSEQUENCES OF BRAND LOYALTY: AN EMPIRICAL STUDY
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GOUNARIS AND STATHAKOPOULOS
Buy nothing
CONSUMER DRIVERS
Risk aversion
Variety seeking
Buy alternative
brand
BRAND DRIVERS
Type of
Brand reputation brand
Availability of substitute loyalty
brands Word-of-mouth
communication
SOCIAL DRIVERS
Social group influences
Peers recommendation Visit other store
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ANTECEDENTS AND CONSEQUENCES OF BRAND LOYALTY: AN EMPIRICAL STUDY
level, then it is desirable and the of the transaction and the cost if he
consumer actively seeks to attain it. decides to acquire the product. Hence
However, if the optimal stimulation to understand how product characteris-
level is exceeded, it becomes too tics contribute to brand loyalty, it is
intensive, leading consumers to try to necessary to comprehend what creates
reduce the complexities that are as- and determines the value individuals
sociated with such a condition and, as derive from a brand. The following
pointed out earlier, they attempt to two brand characteristics are examined
routinise the decision-making process in this study: brand reputation and
and its outcomes. In fact, Sheth and availability of substitute brands.
Parvatiyar56 pointed out that routinisa-
tion and variety-seeking behaviour
become cyclical over time, but the Brand reputation
cycles are asymmetrical in favour of the Although not part of the physical
longer duration of routinised be- product itself, the reputation of a
haviour. brand’s name has been described as an
Routinisation, although initially extrinsic cue, that is, an attribute
helpful, may, however, lead an related to the product.61 A reputable
individual to feelings of monotony and brand name conveys a strong indica-
boredom, which may lead to ex- tion of the product’s quality and equity
perimentation with new brands.57 that is not necessarily related to detailed
Moreover, it appears that the level of knowledge of the intrinsic — technical
variety-seeking behaviour depends on — specification of the product.62
the intrinsic need of consumers to seek Therefore, the choice between alterna-
variety (personal differences) and tive brands within a single product class
on the product category level of is facilitated, since brands are differen-
involvement.58 It is within this tiated easily by their consumers. As
framework that studies report a break Oliver63 suggests, loyalty is not merely
in the link between satisfaction and about product superiority and satisfying
loyalty.59 Indeed, as Homburg and customers. Loyalty is about having
Giering60 have demonstrated, variety customers who can become deter-
seeking is one of the key consumer mined defenders of the brand. If
characteristics which moderates the the firm cannot develop, support
relationship between perceived quality and maintain brand uniqueness and
and satisfaction with the loyalty to a perceived brand equity, then it is
specific brand. Within this framework, not possible to expect loyalty to
this paper hypothesises that: develop.64
Thus having a brand with a strong
H2: Variety-seeking behaviour will relate to reputation will be a significant positive
the type of brand loyalty an individual factor in the formation of brand loyalty,
develops towards a specific brand. since the brand’s reputation strengthens
its perceived equity.65,66 Moreover, the
reputation of the brand strengthens the
Brand drivers habitual behaviour of consumers by
An individual’s intention to purchase a rewarding their choice and making the
product reflects a search for value out brand more desirable and alluring.67 As
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GOUNARIS AND STATHAKOPOULOS
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ANTECEDENTS AND CONSEQUENCES OF BRAND LOYALTY: AN EMPIRICAL STUDY
context of the present work, two types loyalty, since the desire for the brand
of social influence are considered: so- may be affected by group preference.87
cial group influences and peers’ recom- On these grounds, this paper inves-
mendations. tigates the following hypothesis:
A group becomes a reference one
when an individual identifies with it so H5: Social group influences will relate to
much that he takes on many of the the type of brand loyalty an individual
values, attitudes and/or behaviour of its develops towards a specific brand.
members.79 The power of the influence
of a reference group is dependent on
the individual’s susceptibility to this Peers’ recommendation
influence, the strength of his involve- Another strong source of social
ment with the group and the degree influence is the recommendations and
of product conspicuousness.80 Powerful suggestions made by the individual’s
reference groups may easily change the peers. Hite and Hite88 found that a
behaviour of their members, or their party’s reputation could lead to posi-
aspirant members, and align it more tive expectations about the party
with the norms and standards that the which, in turn, leads other parties to
group considers to be acceptable.81 develop reciprocity and loyalty for the
Hence the individual’s loyalty reputable party. When it comes to
towards a product is also dependent on brand names, their reputation reflects
the acceptance of his preference for a the opinion of others that a specific
certain product by the social group the brand possesses or does not possess
individual refers to, particularly when certain characteristics.89 While adver-
the conditions under which individuals tising and/or public relations help
feel coerced to give in to the group’s brands to demonstrate their qualities,
norms are met. By adapting their peers are among the most influential
attitudes and behaviour, consumers sources of information used by con-
fulfil their aspirations and at the same sumers in shaping their opinion
time reduce the perceived risk of concerning a brand’s qualities.90 Peers
making a decision.82 Besides, recent exercise both normative (conformist)
empirical studies have attested to the and identificational influences on con-
impact of social stimuli (or normative sumers. Informative influences help to
information) on loyalty.83,84 guide consumers in product, brand
For instance, Mascarenhas and and store searches,91 whereas norma-
Higby,85 in their study of how tive influences direct and control
youngsters choose a brand, indicated evaluations, choices and loyalties.92
that parents’ consistent choice of a Thus peers’ recommendations are
particular brand influences children to expected to significantly affect brand
perceive the brand as ‘good’, and thus loyalty.93
become loyal to it. Furthermore, Hog Following the reasoned-action
et al.86 found that families and peer paradigm, Bearden and Etzel94 suggest,
groups led young consumers to form a however, that the recommendations of
more positive image of a brand. Hence peers may not necessarily convert into
group social influences are expected to actions (ie purchase). Under certain
have a strong positive impact on brand circumstances, they could merely
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GOUNARIS AND STATHAKOPOULOS
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ANTECEDENTS AND CONSEQUENCES OF BRAND LOYALTY: AN EMPIRICAL STUDY
‘spurious’ type of loyalty as sug- available), and in doing this there is less
gested by Dick and Basu.102 On these risk associated with the decision. The
grounds, this paper investigates the individual has developed the highest
following hypothesis: level of loyalty — ‘action loyalty’.
Betraying the brand will be like
H8: The type of brand loyalty will relate betraying himself.104 Based on the
to the purchase or not of alternative above discussion, this paper investigates
brands. the following hypothesis:
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GOUNARIS AND STATHAKOPOULOS
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ANTECEDENTS AND CONSEQUENCES OF BRAND LOYALTY: AN EMPIRICAL STUDY
e1 e2 e3 e5
e6
e4
0.89
0.83
0.94
0.93
0.89 0.79
0.60
0.62
COVETOUS PREMIUM
0.69 0.69 0.61
INERTIA NO LOYALTY
0.62
0.93
I1 I2 I3 I4 N1 N2 N3 N4 N5
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GOUNARIS AND STATHAKOPOULOS
Loyalty measurement
Dimensions of loyalty
PREM CVTS INRT N-LTY
Rel AVE (Corr)2 Rel AVE (Corr)2 Rel AVE (Corr)2 Rel AVE (Corr)2 Conv Disc
0.82 0.72 0.71 0.94 0.85 0.78 0.88 0.60 0.59 0.91 0.69 0.59 YES YES
PREM, premium loyalty; CNTS, covetous loyalty; INRT, inertia loyalty; N-LTY, no loyalty; Rel, Cronbach’s alpha
coefficient; AVE, average variance extracted ⫽ 兺 (standard loadings)2/兺(standard loadings)2 ⫹ 兺ij; Conv,
convergent validity (AVE > 0.50); Disc, discriminant validity ⫽ AVE/(Corr2) > 1; (Corr)2, highest (Corr)2 between
factor of interest and remaining factors.
measures the lack of fit and takes Table 1, the four-factor solution was
parsimony into account by assessing the superior to that of the single factor.
discrepancy per degree of freedom Convergent and discriminant
between the population covariance validity for the loyalty scale were
matrix and the fitted matrix. That is, it evaluated by calculating the average
penalises for overfitting. The ad- variance extracted (AVE) for each
justed goodness-of-fit index (AGFI) factor. Convergent validity is
is not reported as its usefulness is established if the shared variance
questionable.113 accounts for 0.50 or more of total
The measurement model was first variance. Discriminant validity is
tested for the adequacy of a four-factor evident when the AVE for each
solution. As can be seen in Table 1, construct is greater than the squared
although the overall chi-square test correlation between that construct and
was statistically significant (2 ⫽ 122, any other construct in the model.117
df 83) the GFI of 0.98 and a low The results presented in Table 2
value (below 0.10) of the root mean confirm both the convergent and
square residual (RMSEA ⫽ 0.024) sug- discriminant validity of the four
gested a good model fit.114 Besides, the scales.
2 statistic is known to be strongly Internal consistency was assessed
dependent on sample size, and thus by means of the Cronbach’s alpha
its appropriateness has been strongly coefficient.118 An alpha value of 0.60 or
questioned.115,116 A single-factor model above for new scales, and 0.70 or above
was also tested, but, as can be seen in for established scales, is considered to be
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