Consumer Brand Engagement on Brand Loyalty: The Role of Brand Satisfaction as a Mediating Variable

Abstract

Purpose: this study examined the impact of CBE on brand loyalty directly and indirectly through brand satisfaction. Design/methodology/approach: the survey was given to 80 Islamic banking customers from four leading Islamic banks in Indonesia. The analysis used partial least squares structural equation modeling. Findings: the research findings found a direct relationship between CBE and brand loyalty and an indirect relationship using the brand satisfaction variable as the mediating variable. Research limitations: this study did not use indicators that focus on Islamic banking. Practical implications: these studies are essential to building long-term success. For brand managers, concrete steps can be taken by involving consumers in unique and memorable activities. Originality/value: CBE had an indirect effect on brand loyalty by using brand satisfaction as a mediating variable in Islamic banking.


Keywords: consumer brand engagement, brand satisfaction, brand loyalty, Islamic banking

References
[1] Aaker, J., Fournier, S. and Brasel, S. A. (2004). When Good Brands Do Bad. Journal of Consumer Research, vol. 31, issue 1, pp. 1–16.

[2] Algesheimer, R., Dholakia, U. M. and Herrmann, A. (2005). The Social Influence of Brand Community: Evidence from European Car Clubs. Journal of Marketing, vol. 69, issue 3, pp. 19–34.

[3] Algharabat, R., et al. (2020). Investigating the Antecedents of Customer Brand Engagement and Consumer-Based Brand Equity in Social Media. Journal of Retailing and Consumer Services, vol. 53 Issue 3. pp, 1-13.

[4] Algharabat, R., et al. (2018). The Effect of Telepresence, Social Presence and Involvement on Consumer Brand Engagement: An Empirical Study of Non-Profit Organizations. Journal of Retailing and Consumer Services, Vol 40 Issue 9, pp. 139–149.

[5] Aluri, A., Price, B. S. and McIntyre, N. H. (2019). Using Machine Learning to Cocreate Value Through Dynamic Customer Engagement in a Brand Loyalty Program. Journal of Hospitality and Tourism Research, vol. 43, issue 1, pp. 78–100.

[6] Bapat, D. and Thanigan, J. (2016). Exploring Relationship among Brand Experience Dimensions, Brand Evaluation and Brand Loyalty. Global Business Review, vol. 17, issue 6, pp. 1357–1372.

[7] Cha, M. K., Yi, Y. and Bagozzi, R. P. (2016). Effects of Customer Participation in Corporate Social Responsibility (CSR) Programs on the CSR-Brand Fit and Brand Loyalty. Cornell Hospitality Quarterly, vol. 57, issue 3, pp. 235–249.

[8] Chinomona, R., Mahlangu, D. and Pooe, D. (2013). Brand Service Quality, Satisfaction, Trust and Preference as Predictors of Consumer Brand Loyalty in the Retailing Industry. Mediterranean Journal of Social Sciences, vol. 4, issue 14, pp. 181–190.

[9] de Villiers, R. (2015). Consumer Brand Enmeshment: Typography and Complexity Modeling of Consumer Brand Engagement and Brand Loyalty Enactments. Journal of Business Research, vol. 68, issue 9, pp. 1953–1963.

[10] Dessart, L. (2015). Consumer Engagement in Online Brand Communities. In: Scottish. Doctoral Colloquium, 9-10 April, King’s College Aberdeen, UK. Dessart, L.

[11] Drennan, J., et al. (2015). Examining the Role of Wine Brand Love on Brand Loyalty: A Multi-Country Comparison. International Journal of Hospitality Management, Vol 49 Issue 4. Pp. 47–55.

[12] Dwivedi, A. (2015). A Higher-Order Model of Consumer Brand Engagement and its Impact on Loyalty Intentions. Journal of Retailing and Consumer Services, vol. 24, pp. 100–109.

[13] Dwivedi, A. (2015b). A Higher-Order Model of Consumer Brand Engagement and its Impact on Loyalty Intentions. Journal of Retailing and Consumer Services, Vol 24, pp. 100–109.

[14] Erciş, A., et al. (2012). The Effect of Brand Satisfaction, Trust and Brand Commitment on Loyalty and Repurchase Intentions. Procedia - Social and Behavioral Sciences, Vol 58, pp. 1395–1404.

[15] Fang, Y.-H. (2017). Beyond the Usefulness of Branded Applications: Insights from Consumer–Brand Engagement and Self-construal Perspectives. Psychology & Marketing, Vol 34(1). Pp. 461–469.

[16] Fernandes, T. and Moreira, M. (2019). Consumer Brand Engagement, Satisfaction and Brand Loyalty: A Comparative Study between Functional and Emotional Brand Relationships. Journal of Product and Brand Management, vol. 28, issue 2, pp. 274–286.

[17] Fernandes, T. and Moreira, M. (2020). Consumer Brand Engagement, Satisfaction and Brand Loyalty: A Comparative Study between Functional and Emotional Brand Relationships. A comparative study between functional and emotional brand relationships.Journal of Management, 28 (2), 274–286

[18] Fornell, C., et al. (1996). Index: Nature, Purpose, and Findings. Journal of Marketing, Vol 60(2). Pp. 7–18.

[19] France, C., Merrilees, B. and Miller, D. (2016). An Integrated Model of Customer-Brand Engagement: Drivers and Consequences. Journal of Brand Management, vol. 23, issue 2, pp. 119–136.

[20] Goldsmith, R. E. (2012). Brand Engagement and Brand Loyalty. IGI Global, 1965, Vol 43(1) pp. 121–123.

[21] Graffigna, G. and Gambetti, R. C. (2015). Grounding Consumer-Brand Engagement: A Field-Driven Conceptualisation. International Journal of Market Research, vol. 57, issue 4, pp. 605–630.

[22] Gummerus, J., et al. (2012). Customer Engagement in a Facebook Brand Community. Management Research Review, vol. 35, issue 9. pp, 857-877.

[23] Hariyanto, E. (2018). The Influence of Brand Experience through Brand Trust and Brand Satisfaction toward Brand Loyalty Consumer at Carl’s Jr Surabaya. Petra Business & Management Review, vol. 4, issue 2, pp. 19–29.

[24] Hollebeek, L. D. (2011). Demystifying Customer Brand Engagement: Exploring the Loyalty Nexus. Journal of Marketing Management, vol. 27, issue 7–8, pp. 785–807.

[25] Hollebeek, L. D. (2011). Exploring Customer Brand Engagement. Journal of Strategic Marketing, vol. 19, issue 7, pp. 555–573.

[26] Khan, I. and Rahman, M. F. Z. (2016). The Role of Customer Brand Engagement and Brand Experience in Online Banking. International Journal of Bank Marketing, Vol 34, issue 7, pp. 1025–1042.

[27] Jin, S. A. A. and Lee, K. M. (2010). The Influence of Regulatory Fit and Interactivity on Brand Satisfaction and Trust in E-Health Marketing inside 3d Virtual Worlds (Second Life). Cyberpsychology, Behavior, and Social Networking, vol. 13, issue 6, pp. 673–680.

[28] Johnson, M. D. and Fornell, C. (1991). A Framework for Comparing Customer Satisfaction Across Individuals and Product Categories. Journal of Economic Psychology, vol. 12, issue 2, pp. 267–286.

[29] Kabadayi, S. and Price, K. (2014). Consumer – Brand Engagement on Facebook: Liking and Commenting Behaviors. Journal of Research in Interactive Marketing, vol. 8, issue 3, pp. 203–223.

[30] Kaur, H., et al. (2020). The Role of Brand Community Identification and Reward on Consumer Brand Engagement and Brand Loyalty in Virtual Brand Communities. Telematics and Informatics, Vol 46 (3), pp. 101321.

[31] Khan, I., Rahman, Z. and Fatma, M. (2016). The Role of Customer Brand Engagement and Brand Experience in Online Banking. International Journal of Bank Marketing, vol. 34, issue 7, pp. 1025– 1041.

[32] Kim, R. B., Yoon, D. H. and Yan, C. (2015). Effects of Brand Experience on Brand Trust, Brand Satisfaction & Brand Loyalty: Building Spa Brands in South Korea. Actual Problems of Economics, vol. 168, issue 6, pp. 182–189.

[33] Wansoo, K. and Ok, C. (2015). Customer Orientation of Service Employees and Rapport : Influences on Service Outcome Variables in Full Service Restaurants. Journal of Hospitality and Tourism Research, vol. 34, issue 1, pp. 34–55.

[34] Krystallis, A. and Chrysochou, P. (2014). The Effects of Service Brand Dimensions on Brand Loyalty. Journal of Retailing and Consumer Services, vol. 21, issue 2, pp. 139–147.

[35] Kuvykaite, R. and Piligrimiene, Z. (2014). Consumer Engagement into Brand Equity Creation. Procedia - Social and Behavioral Sciences, Vol 156, pp. 479–483.

[36] Leckie, C., Nyadzayo, M. W. and Johnson, L. W. (2016). Antecedents of Consumer Brand Engagement and Brand Loyalty. Journal of Marketing Management, vol. 32, issue 5–6, pp. 558–578.

[37] Lin, Y. H. (2015). Innovative Brand Experience’s Influence on Brand Equity and Brand Satisfaction. Journal of Business Research, vol. 68, issue 11, pp. 2254–2259.

[38] Mabkhot, H. A., Salleh, S. M. and Shaari, H. (2016). The Mediating Effect of Brand Satisfaction on the Relationship Between Brand Personality and Brand Loyalty: Evidence from Malaysia. Management Science Letters, Vol (1). Pp. 87–98.

[39] Payne, M. E., Peltier, J. W. and Barger, V. A. (2017). Omni-Channel Marketing, Integrated Marketing Communications and Consumer Engagement: A Research Agenda. Journal of Research in Interactive Marketing, vol. 11, issue 2, pp. 185–197.

[40] Marist, A. I., Yulianti, L. N. and Najib, M. (2014). The Role of Event in Building Brand Satisfaction, Trust and Loyalty of Isotonic Drink. International Journal of Marketing Studies, vol. 6, issue 6, pp. 57–65.

[41] Nam, J., Ekinci, Y. and Whyatt, G. (2011). Brand Equity, Brand Loyalty and Consumer Satisfaction. Annals of Tourism Research, vol. 38, issue 3, pp. 1009–1030.

[42] Pappu, R. and Quester, P. G. (2016). How Does Brand Innovativeness Affect Brand Loyalty? European Journal of Marketing, vol. 50, issue 1–2, pp. 2–28.

[43] Pedersen, H. N. and Er, E. (2014). Influences of Co-Creation on Brand Experience: The Role of Brand Engagement. International Journal of Market Research, vol. 56, issue 6, pp. 807– 832.

[44] Pongpaew, W., et al. (2017). Social Presence and Customer Brand Engagement on Facebook Brand Pages, https://doi.org/10.1108/JPBM-08-2015-0956. European Journal of Marketing col 21 pp 12-21

[45] Raïes, K., Mühlbacher, H. and Gavard-perret, M. (2015). Consumption Community Commitment: Newbies’ and Longstanding Members’ Brand Engagement and Loyalty. Journal of Business Research, https://doi.org/10.1016/j.jbusres.2015.04.007. Vol 27 (2) pp 331-342

[46] Rather, R. A. and Sharma, J. (2016). Brand Loyalty with Hospitality Brands: The Role of Customer Brand Identification, Brand Satisfaction and Brand Commitment. Pacific Business Review International, vol. 1, issue 3, pp. 11.

[47] Rather, R. A. and Sharma, J. (2016). Brand Loyalty with Hospitality Brands: The Role of Customer Brand Identification, Brand Satisfaction and Brand Commitment. Pacific Business Review International, vol. 1, issue 3, p. 11.

[48] Roustasekehravani, A., Hamid, A. B. A. and Hamid, A. A. (2015). The Effect of Brand Personality and Brand Satisfaction on Brand Loyalty: A Conceptual Paper. Journal of Management Research, vol. 7, issue 2, p. 10.

[49] Russell-Bennett, R., McColl-Kennedy, J. R. and Coote, L. V. (2007). Involvement, Satisfaction, and Brand Loyalty in a Small Business Services Setting. Journal of Business Research, vol. 60, issue 12, pp. 1253–1260.

[50] Şahin, A., Zehir, C. and Kitapçi, H. (2011). The Effects of Brand Experiences, Trust and Satisfaction on Building Brand Loyalty; An Empirical Research on Global Brands. Procedia - Social and Behavioral Sciences, Vol 24. Pp. 1288–1301.

[51] Schaufeli, W. B., et al. (2002). Burnout and Engagement in University Students a Cross-National Study. Journal of Cross-Cultural Psychology, vol. 33, issue 5, pp. 464–481.

[52] Shahid, H. and Iqbal, A. (2018). Customer Brand Engagement Behavior in Online Brand Communities. Journal of Services Marketing, vol. 32, issue 3, pp. 286–299.

[53] Solem, B. A. A. (2016). Influences of Customer Participation and Customer Brand Engagement on Brand Loyalty. Journal of Consumer Marketing, vol. 33, issue 5, pp. 332–342.

[54] Sprott, D., Czellar, S. and Spangenberg, E. (2004). The Importance of a General Measure of Brand Engagement on Market Behavior: Development and Validation of a Scale. Journal of Retailing and Consumer Services, vol. 21, issue 2, pp. 139–147.

[55] Sprott, D., Czellar, S. and Spangenberg, E. (2009). The Importance of a General Measure of Brand Engagement on Market Behavior: Development and Validation of a Scale. Journal of Marketing Research, vol. 46, issue 1, pp. 92–104.

[56] Veloutsou, C. (2015). Brand Evaluation, Satisfaction and Trust as Predictors of Brand Loyalty: The Mediator-Moderator Effect of Brand Relationships. Journal of Consumer Marketing, vol. 32, issue 6, pp. 405–421.

[57] Venter, M., Chinomona, R. and Chuchu, T. (2016). Brand Satisfaction and Brand Loyalty Among the Black Middle Class. The Retail and Marketing Review, vol. 12, issue 2, pp. 46–54.