THE PARCELING OF LOYALTY: BRAND QUALITY, BRAND AFFECT, AND BRAND TRUST EFFECT ON ATTITUDINAL LOYALTY AND BEHAVIORAL LOYALTY.

Author:Soedarto, Teguh
Position:Abstract
 
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INTRODUCTION

The magnetism of telecommunications industry market has prompted companies to try to suppress failure in the mobile phone market through the use of brand extension strategies. According to Keller (2013), brand development strategy is a strategy chosen by the company using the same brand for different product categories. Some of these companies consider the advantages of brand development strategy options, which encourage the acceptance of new products, reduce the risk of failure of consumer rejection, or reduce the introduction and further marketing program (Keller, 2013). From this point, it is agreed that the brand is one of the companies' important factors to reinforce their position in the telecommunication industry.

The use of the same brand from existing product (the parent brand) for new products in different categories (brand extension) increases the rate of new receipts and consumer purchase intentions. This strategy maintains the efficiency of advertising and spending on promotions while still being able to create new market segments. Companies are not in a position to allocate marketing costs at the same rate as those issued to the parent brand but can achieve the same level of success. The strong reputation of the parent brand can minimize the risk of launching new products by taking advantage of consumer knowledge and experience formed by the parent brand. One of the achievements of a brand is when the brand can enter the ranks of top brands. The ranking criteria for the top brand award are the most remembered, last purchased, and high-purchase mark of the brand in the future.

The criterion in the concept of science is a reflection of the existence of attitudinal loyalty and behavior loyalty. Both variables are identified quite important both in science and practice because it has a considerable value of usefulness. According to Odin et al. (2011) in Gecti & Zengin (2013), attitudinal loyalty is an approach to loyalty to a brand based on psychological commitment and behavior loyalty is loyalty from the perspective of consumer behavior as indicated by purchasing decisions and the intention of doing repeat purchase. Gecti & Zengin (2013) found that there are various variables that affect behavior loyalty, namely brand trust and brand affect. Brand trust proves to positively affect attitudinal loyalty but has no direct effect on behavior loyalty. Attitudinal loyalty positively affects behavior loyalty, so the more positive the consumer attitude towards a brand the stronger behavior loyalty. Based on the results of Gecti & Zengin (2013) and Jahangir et al. (2009) it is explained that attitudinal loyalty is influenced by brand trust, brand affect and attitudinal loyalty is also able to become the mediating variable from the second influence on behavior loyalty. Bennett & Thiel (2002) in states that behavior loyalty is an observable result of attitudinal loyalty so that high attitudinal loyalty causes behavior loyalty will also be high. Brand trust and brand affect are able to influence behavior loyalty through attitudinal loyalty. The role of attitudinal loyalty is expressed as a place of mediation that has properties as a booster of both variables against behavior loyalty.

Brand quality is also one of the important elements in the formation of brand equity. If the brand owns many good quality indicators, customers will tend to be satisfied and if the quality can be maintained by the seller, the customer can loyal to the brand or the company. Several researchers believe that quality relates to the loyalty. The quality which is divided into intrinsic and extrinsic attributes (Zeithaml, 1988; Steenkamp, 1997) is believed could influence the loyalty of the customers (Fandos & Flavian, 2006). Another researcher like Caruana et al. (2000) stated that service quality has been found as the important input for customer satisfaction and finally will influence the service loyalty.

There are still limited number of quantitative researches that divide the loyalty into two parts and test it in the proposed model like Bandyopadhyay & Martell (2007) who analyze and test the influence of attitudinal loyalty to behavioral loyalty, Shih-I (2011) who classifies the loyalty into attitudinal and behavioral loyalty and these two variables affected by satisfaction, corporate image and switching cost, then Mechinda et al. (2009) who used these variables on the tourist as the research objects, and other small number of similar research. This study will focus on the examination of the parceling of loyalties which are attitudinal and behavioral loyalty with other variables which are important for the brand sustainability like brand trust, brand affect and brand quality remembering that these variables directly related to the relationship with the customers. Moreover, this study also gives the description of the telecommunication industry condition in Indonesia which has developed a lot. Through the explanation and the result of this study, many findings are expected to be useful for the development of marketing literature and for the factual marketing activities.

LITERATURE REVIEW AND HYPOTHESES

The brand is one of the most famous words in the world. Starting from the layman to the researcher who focused on this term, conclude that the brand is one attribute that has its own value in the existence of an attribute. The notion of the brand by Kotler & Armstrong (1997) is the seller's promise to convey a specific set of properties, benefits, and services consistently to the buyer. Based on this understanding, it is identified that the brand essentially has an abstract form and then embodied in several criteria that can be felt and enjoyed by consumers such as properties, benefits or specific services. This notion shifts with the development of an age in which the brand is defined as the name, term, sign, symbol, or design, or a combination thereof, intended to identify goods or services or groups of sellers and to differentiate (differentiate) from competing goods or services (Kotler, 2009). In line with Kotler, some scientists like Lamb et al. (2004) define brands as terms, symbols, designs, or combinations of them, which identify the products of the sellers and distinguish them from competing products. Some of the latter notions indicate that the notion of brand becomes a more realistic form than ever before, in which the brand is identified as a term, sign, symbol, design, design, or combination of everything that makes consumers familiar with the product (both goods and services) owned by the seller and make the product can be identified differently from other products.

Judging from the perspective of value owned, the value of the brand is not only beneficial to the seller, but also for the buyer. For sellers, the brand will be able to be a differentiator for its products with products owned by competitors. By having a differentiator, then the product will be easily identified by the buyer and this will certainly be very beneficial for the seller. In this era of the free market where competition is very tight, a product must have differences with other products in the market. This is a necessity where a customer or customer would expect to get a different product from other products on the market. By having different products, this will make the possibility of consumers to buy more and more, and the possibility to repurchase is also greater. This will certainly provide benefits for the seller.

Brand Affect

This study raises one of the core aspects of brand management which is brand affect. Brand management has also made some variables as central aspects such as brand affect and brand loyalty (Chaudhuri & Holbrook, 2001). The researchers agree that brand is valuable intangible assets which company has (Vithala et al., 2004; Srivastava et al., 1998) but still we can identify brand through its attributes stuck in the product. Despite its status as valuable intangible asset, the role of the brand is very big for the company. The strength of the brand can be called as brand equity which can influence consumer-level constructs such as attitudes, awareness, image, and knowledge and company related outcomes like market share, prices, revenues and cash flow (Ailawadi et al., 2003).

Brand may influence some human aspects such as their attitude. Like what Spencer (1867) states that attitude has three components which are cognitive, affective and conative aspects. Brand affect corresponds to the affective aspect which related to the all of the human being feels such as joy, happy, sad, angry, upset, impressed, and many more. Brand affect is believed as a strong driver of brand loyalty (Chaudhuri & Holbrook, 2001). In this study, brand affect can be seen as a consumers' overall favorable or unfavorable evaluation of the brand (Keller, 1993; Bhat & Reddy, 2001). Brands that make the customer "happy", "joyful" or "affectionate" could cause a stronger attitudinal commitment and purchase loyalty (Matzler et al., 2008). Another definition comes from Chaudhuri & Holbrook (2001) who defines that brand affect is a brand's potential to elicit a positive emotional response in the average consumer as a result of its use.

Brand Trust

According to Moorman et al. (1992) in Anwar et al. (2011), brand trust is understood as the willingness of consumers to depend on the performance of a brand in the face of a certain risk. This opinion also emphasizes that a brand trust is basically a form of resignation to the performance of a brand, with the belief that the purchased brand is able to prevent consumers from unwanted risks. Brand trust arises because of unwanted risk by consumers so that consumers entrust it to a brand. Deutsch (1958) in Andervazh et al. (2013) provides that the trust is defined as the expectation of the parties in a transaction and the associated risk. This opinion emphasizes that a belief is the expectation...

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