Components of Brand Community and Brand Commitment (Banking Industry) PDF

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INTERNATIONAL JOURNAL OF CURRENT LIFE SCIENCES

RESEARCH ARTICLE
International Journal of Current Life Sciences - Vol.4, Issue, 2, pp.281-286, February, 2014

COMPONENTS OF BRAND COMMUNITY AND BRAND COMMITMENT (BANKING


INDUSTRY)
Akram Eghbali, Shahnaz Nayebzadeh* and Hassan Dehghan Dehnavi
Department of Management, Yazd Branch, Islamic Azad University, Yazd, Iran Safaieeh, Shoahadegomnam Road, Zip
code: 89195/155, Yazd, Iran
AR TIC L E I NF O ABS TR AC T
Article History:
This study was conducted intending to investigate the impact of brand
community identification and commitment on brand commitment. This study is
Received 14th, January, 2014 an applied research in terms of objective and a correlation research in terms of
Received in revised form 24th, January, 2014 method. Questionnaires and survey method have been applied for data
Accepted 13th, February, 2014 collection. The research population consists of the members of the customers
Published online 28th, February, 2014 club of Mellat Bank in Branches of Yazd Township, and 180 acceptable
samples have been selected through simple random sampling. Data were
Key words: analyzed on LISREL software applying structural equations modeling and
Brand community identification, Brand confirmative factor analysis. Also the meditating role of the variable of brand
community commitment, Brand commitment community commitment has been examined using Sobel Test. Findings of the
study showed that brand community identification has a significant effect on
brand community commitment. Also the effect of brand community
commitment on brand commitment was confirmed, and it was concluded that
brand community identification affects brand commitment through brand
community commitment.

© Copy Right, IJCLS, 2014, Academic Journals. All rights reserved.

managers of the companies, and some others are


INTRODUCTION organizations established by people and are managed
Many researchers have found that consumers take various independently by the customers who are interested in those
advantages of their relationship with a brand [10]. Therefore it brands [1].
can be stated that the most important asset of an organization
Brand communities have also been established in online
is its brand; a powerful brand is considered as a competitive
world. This is due to the popularity of the brands on the
advantage functioning as an obstacle for the entrance of the
internet. Virtual brand communities are established in any
competitors to the markets related to that company. It also
online media, and can be initiated by a pioneer member or the
leads to easier acceptance of the brand among the distributers
company itself (Chauha & Pillai., 2013: 40) .Research on
and consumers [9]. Strong relationships between consumers
brand communities has been noticed by scholars and
and the brand bring about positive results for the two sides;
researchers during the several past years [13]. Brand
the consumers can meet his needs for social relationships
communities are relational networks between the brand and
through establishing and maintaining a relationship with the
members of its community. They are potentially created when
brand. Also the advantages of brand commitment and the
the brands make efforts to establish and maintain a
consumer’s support of the brand will be explained [14].
community (Ibid, 1581). Brand community presents useful
Brand community that is today a very popular issue, is
information about the brand to the members, and helps the
regarded as a social group noticed by the fans of a brand [4]
organization with making a powerful brand [3]. Despite the
and is a tool for reinforcing the relationships between the
significance of brand communities in service sector, only a
consumers and the brand [11] .Brand community is a very
few studies have investigated brand communities and their
important concept. Not only they are channels of information,
effects on brand commitment. Previous studies have been
places for social support, and channels of stating identity for
conducted on online brand communities and social networks.
the consumers, but also they are regarded as efficient tools in
The customers club of Mellat Bank has been considered as
marketing plans of organizations. The result of these
the population of this research in service sector, and the
communities is an increase in consumers’ interests. Therefore,
present study is seeking for the answer to the question ‘How
many famous brands have established brand communities,
brand community identification and commitment affect brand
some of which are managed by professional marketing
commitment?’

*Corresponding author: Shahnaz Nayebzadeh


Department of Management, Yazd Branch, Islamic Azad University, Yazd, Iran Safaieeh, Shoahadegomnam Road, Zip code:
89195/155, Yazd, Iran
International Journal of Current Life Sciences - Vol.4, Issue, 2, pp.281-286, February, 2014
Literature Review community, it must be considered as a factor of attitude
because it increases when the members acknowledge the
Brand Community (BC)
value of the stable relationships between themselves and the
Muniz and O´Guinn (2001) first defined the concept of brand community (Hur., 2011: 1197).
community in marketing literature as “a limited (not
Brand Commitment
geographically) academic community based on an organized
set of social relationships among the admirers of a brand” Kiesler (1971) defines commitment as “ an individual’s
[15]. A brand community can be “a group of consumers tendency towards behavioral activities.” The level of
developed upon their common interest to support a brand and commitment is a mental state that, in global level, indicates
social identity, whose members are commonly involved in the experience of dependency in a relationship. Long-term
group activities to accomplish their goal, and/or express their inclination towards that relationship, feeling of dependency to
feelings and commitment” [11]. Muniz and O´Guinn stated a partner, and a tendency to maintain the relationship are
that brand community, like any other community, is defined called commitment. Cunningham (1967) is one of the several
by three components: pioneer researchers to consider brand commitment as a basic
 Common awareness that is the intrinsic feeling of requirement of the customer’s intentions of loyalty [9].
the members’ belonging to each other. It can also be
Hypotheses and the research conceptual model
the feeling of being “we” or kind of cognitive
feeling that the members have to each other in some Relationships between the brand community and brand
levels, even if they have never met each other. This commitment
awareness is shared and is often no less than the
Recently, regarding the significance of brand communities,
collective feeling within a society.
marketers have increasingly emphasized on the structure,
 Customs and traditions that have developed the management, and maintenance of brand communities.
common history, culture, and awareness of the Rheingold (1993) defines brand community as a group of
community, and typically inculcate some behavioral people having long-term interactions with a brand (Hur, 2011:
norms and values in respect with experiences of 1197). Brand communities provide a network for
consuming the same product. relationships with the brand and with other consumers [5].
 Feeling of moral responsibility that conveys the In social psychology, community identification means that an
feeling of commitment to or responsibility for the individual recognizes himself as a member of a community
community as a whole to the single members, who [8]. After an individual is recognized as a member of a
help to the collective efforts and the stability of the community, he tries to keep on his relationships with the
group [15]. community and other members. This relationship is in a way
Brand Community Identification (BCI) that brand communities affect the member’s interpretations
and activities [5]. When the consumers are emotionally loyal
Identification of a brand community can be regarded as one of to the services of a company, they identify themselves by the
the characteristics of brand communities, and is defined as the perspective and the value of the company, and are interested
perception of commitment to a group as a result of the fact in the development of that company (Hur, 2011: 1200). On
that the individual is recognized through that group. Brand the other hand, when the consumers are dissatisfied with the
community identification is one of the factors that affect the productions and services of a company, they tend to finish
behavior of the community members and has two their relationship with the company or to report their
components: cognitive component (the consumer’s awareness dissatisfaction to the company (Ibid: 1200).
of his membership in the community and perceiving his
similarities with other members) and emotional component But the members of a brand community, who are interested in
(emotional involvement of the consumer with the group, that that brand and its productions, usually participate in
is his emotional commitment to the group) [5]. discussions concerning the company with their extensive
knowledge about the production and the company, and
Brand Community Commitment (BCC) support one another in solving the problems of the company.
Some researchers have regarded commitment as a result of They also present ideas for creating new productions.
successful performance of relational marketing management. Therefore, brand communities can also be valuable sources of
Commitment refers to a state of developing stable innovation [5]. Consumers with emotional commitment to the
relationships with fellows and acceptance of short-term brand hardly pay attention to the advertisements of the
sacrifices in order to maintain the relationships and guarantee competitors and are rarely attracted by them (Hur.,2011:
the stability of the relations. It is also defined as “the 1200). Members of brand communities even try to
consumers’ self confidence in a way that emotional and communicate with their favorite companies and share their
performance benefits of maintaining these relationships are experience and ideas with them [5]. People with commitment
more than the profit gained from them.” In respect with the to brand communities are unconsciously loyal to that brand
relationship between the consumer and the brand, brand and in their purchases, prefer the brand of the community to
community commitment refers to every member’s attitude other brands. Madupu and Cooley (2010) announced that
towards the community. In this respect, the concept of brand communities establish stable commitment to the brand
commitment is used as a predictor of the members’ real and intentions of positive oral advertisements in their
behavior within an online brand community such as consumers [6]. Jung et al (2008) referred to the role of brand
participating in group activities, helping the community, and community commitment as prior to brand commitment. Also
solving other members’ problems. With regard to the role of the interactions between the company and brand community
commitment in respect with real behaviors within a are useful for the company for identifying the customers and
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International Journal of Current Life Sciences - Vol.4, Issue, 2, pp.281-286, February, 2014
their exact characteristics and needs. Hence in this way, Table 1 Demographic characteristics of the sample
companies will be capable of managing long-term Demographic - %
relationships with customers to decrease the costs (Hur, 2011: Variable
1197). Gender Male 76.1
Female 23.9
After joining to a brand community, the customers feel as to -25 9.44
be valuable and achieve self confidence. Through their good Age 26-35 42.78
36-45 28.33
feeling to the community, they also pay attention to the brand 46-55 19.44
of the company and share their experiences with other Marital Status Single 15.6
members in their long-term relationships. They also try to Married 84.4
consume the productions and services of the company in Upper diploma 42.28
Education B.A 51.01
competition with other members. Hence, the brand M.A 6.04
community provides the members with opportunities to get PhD 0.67
familiar with the productions of the company. After -5 years 18.64
membership in brand community, the individual obtains Job Experience 6-10 years 24.86
11-15 years 19.21
commitment to the brand and the products through his 16-20 years 12.99
commitment to the brand community. On this base, the Over 20 years 24.2
following hypotheses and conceptual method have been
considered for this research. Figure 1. Shows the conceptual
The coefficient of alpha for the whole questionnaire was
model of this research.
calculated using SPSS18 and was determined to be 0.909 that
H1: there is a significant relationship between brand
shows the reliability of the questionnaire. Table2. Shows the
community identification and brand community commitment.
value of Cronbach’s alpha and the number of questions
H2: There is a significant relationship between brand
related to every variable.
community commitment and brand commitment.
H3: Brand community identification affects brand Table 2 Results of Reliability test using Cronbach’s
commitment through brand community commitment. alpha
Research Number Items Cronbach’s Source of
Brand community variables Of alpha questions
questions
Brand Brand brand 6 1-6 0.766 Zhou et al
Brand community (2012)
community community commitment identification
identification commitment (BCI)
brand 5 7-11 0.860 Zhou et al
community (2012)
Figure 1 Conceptual model of the research commitment
(BCC)
MATERIALS AND METHODS brand 3 12-14 0.857 Zhou et al
commitment (2012)
Sampling and Data Collection (BC)
Total 14 - 0.909 -
The present study is an applied research. Also with regard to questionnaire
the type of the problem and the objectives, this is a
descriptive-correlation research. The method for collecting Data Analysis
data is a combination of library study and field work. A
Before getting to test the hypotheses, it is necessary to make
review of related literature was carried out through library
sure of the appropriateness of the measuring model. In this
studies, and questionnaires were distributed among the
research, confirmative factor analysis was applied to the
members of Mellat Bank club to gather required data. The
factors using path analysis. This analysis was carried out
research population consisted of the members of customers
through structural equations modeling using LISREL
club of Mellat Bank, among which, 180 members who were
software. Also the mediating role of brand community
customers of Yazd branches were selected randomly. From
commitment was investigated using Sobel test.
the 180 acceptable questionnaires that were re-collected, 137
respondents were men (76.1%) and 43 were women (23.9%). Main Model
Also 28 members were single (15.6%) and 152 members
Investigation of the measuring models with t-statistic,
were married (84.4%). In terms of age, 17 respondents were
standard coefficient, and error coefficient for different
bellow 25, 77 were between 26 and 35, 51 members between
factors
36 to 45, and 35 respondents were between 46 and 55.
Demographic characteristics of the studied sample All the variables had a t-statistic greater than 1.96. Also the
demonstrate that a wide range of members have been studied. value of the coefficient of determination was appropriate for
Table 1. Presents demographic characteristics of the 180 them. Therefore none of the items is eliminated from the
members of the sample. The variables of brand community model, and the study will be continued with all the items.
identification, brand community commitment, and brand Then we get to investigation of the model.
commitment have formed the research model. The
Model Confirmation
questionnaire consists of fourteen 5-alternative questions (5=
strongly agree - 1= strongly disagree). Cronbach’s alpha As it can be observed, the value of  2 in degrees of freedom
coefficient has been used to determine the reliability of the is 1.76 that is smaller than 3.
questionnaire.
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International Journal of Current Life Sciences - Vol.4, Issue, 2, pp.281-286, February, 2014
Table 3 Coefficients and the value of t for the variables
- Items Standard t Coefficient of Error
coefficient determination
Q1 0.56 7.65 0.32 0.064
Q2 0.51 6.82 0.26 0.054
brand community Q3 0.70 10.09 0.49 0.056
identification (BCI) Q4 0.77 11.49 0.60 0.061
Q5 0.47 6.14 0.22 0.081
Q6 0.62 8.65 0.39 0.058
Q7 0.61 - 0.38 -
Q8 0.87 9.06 0.75 0.076
brand community Q9 0.84 9.00 0.71 0.071
commitment (BCC) Q10 0.75 8.13 0.56 0.065
Q11 0.74 8.23 0.55 0.073
Q12 0.80 - 0.65 -
brand commitment Q13 0.85 12.16 0.73 0.097
(BC) Q14 0.73 12.17 0.54 0.081

Lowness of this value shows that the difference between the Testing the Hypotheses
research conceptual model and the data observed in the After investigation and confirmation of the model, research
research is slight. Also RMSEA=0.065 is smaller than 0.08. hypotheses were examined using Sobel test and with regard to
In addition to  , as the value of RMSEA is lower, the
2
the model.
model has better appropriateness. Also the coefficients Table 7 Results of Sobel test
GFI=0.91, NFI=0.96, IFI=0.098, and CFI=0.98 are all larger Z Test S.E p Indirect Standard
than 0.9 . Therefore the model has acceptable appropriateness statistic Significance effect Indirect
and is confirmed. Now using the value of t-statistic and level effect
4.256 0.131 0.000 0.556 0.583
standard coefficient, we investigate the effect of independent
variable on dependent variable. Brand community identification affects brand community
Table 4 Model appropriateness commitment
indicators Values indicators Values
With regard to the fact that the absolute value of t-statistic is
 2 126.48 AGFI 0.87
equal to 7.66 and is larger than 1.96, brand community
Degree of freedom 72 NFI 0.96 identification has a significant effect on brand community
 2
in degree of
1.76 NNFI 0.98 commitment. Also the value of this effect is 0.81 and is
freedom positive.
RMSEA 0.065 IFI 0.98
GFI 0.91 CFI 0.98

The numbers present on the paths show the value of t-value


for each path. If these numbers are not significant, they will
be shown with red color in software output. In this analysis,
the value of t-statistic for a path is larger than 1.96 that is
significant. Figure 4. Shows the main model in state of
standard estimation. The results of estimation (lower part)
show the appropriateness of the model. Only in this state it is
possible to make a comparison between the observed
variables explaining the latent variable. Model in standard
state shows the extent to which the variance of the latent
variable is explained by the observed variables.
Table 5 T-statistic for hypotheses 1 and 2
Hypotheses t- Standard Result Path
test statistic error coefficient
H1 7.66 0.11 Affect 0.81 Fig 2 Model in state of non-standard estimation
H2 5.27 0.13 Affect 0.72
H2: Brand community commitment affects brand
Table 6 Analysis of the data related to the third commitment
hypothesis
- Path Coefficient t- S.E Standard The absolute value of t- statistic is equal to 5.27 and is larger
Estimation statistic Coefficient than 1.96. This means that brand community commitment has
1 BCI --> 0.83 7.66 0.11 0.81
BCC
a significant effect on brand commitment. The value of this
2 BCC --> 0.67 5.27 0.13 0.72 effect is 0.72 and is positive.
BC

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International Journal of Current Life Sciences - Vol.4, Issue, 2, pp.281-286, February, 2014
variable, and the value of its indirect effect is 0.583.
Therefore, brand community identification affects brand
commitment through brand community commitment. Hence,
the third hypothesis is also confirmed.
DISCUSSION AND CONCLUSION
Findings of this study suggest that identification of Mellat
customers’ club affects commitment to this club; in other
words, with an increase in brand community identification,
brand community commitment also increases. This result is in
agreement with that of the study by Mathwick et al [10]. Also
presence of a significant relationship between commitment to
Mellat club and commitment to the brand of Mellat shows
that an increase in brand community commitment leads to an
increase in customers’ commitment to the club. In previous
studies, researchers [16] also confirmed the relationship
between brand community commitment and brand
commitment. Results of testing the third hypothesis show that
the presence of a relationship between identification of Mellat
club and commitment to the brand of Mellat through
Fig 3 Model in state of significant numbers (t-value)
commitment to Mellat club is also confirmed. In other words,
H3: Brand community identification affects brand brand community identification has a significant relationship
commitment through brand community commitment with brand commitment through brand community
commitment.
According to Table 6., the amount of absolute value for path 1
is equal to 7.66 and is larger than 1.96. Therefore there is a Since the goal of managing customers’ relationships is to
significant relationship between brand community establish long-term relationships with them, maintaining and
identification and brand community commitment. On the developing these relationships are ways of achieving this
other hand, the absolute value of t-statistic for path2 is equal goal. Brand commitment is not established once; however,
to 5.27 and is larger than 1.96. when it is created in relationships with customers, it will last
for a long time. Brand commitment is one of the ways to form
loyalty to the brand and customer’s satisfaction. Therefore,
achievement and development of relational methods to
establish and stabilize brand commitment through
establishment of customers club are much significant for
companies and organizations. Therefore, bank managers are
recommended to try to increase customers’ commitment to
their club and brand by employing appropriate strategies and
policies. Also it is suggested to them to introduce loyal
customers every month on their website, and to present gifts
to them in seasonal festivals. Also the club must identify
customers with lower points and try to encourage them. It is
recommended that Mellat Bank should consider particular
advertisements for its customers club in presenting its new
services. Presentation of new banking services and the club
via other communities is also a good effort. Also treaties can
be signed to consider particular advantages for members of
other communities to encourage them to join Mellat club.
In future research, researchers must consider commitment to
customers club of Mellat Bank and investigate the factors that
Fig 4 Model in state of standard coefficients can lead to an increase to commitment to this club. Also
future research can be designed to study the functions of
Therefore, there is also a significant relationship between customers clubs in making the customers loyal and to
brand community commitment and brand commitment. In examine the role of the manager of Mellat club and
order to investigate the mediating role of the variable of brand management of relationships with customers. Even future
community commitment, Sobel test has been used, the results researchers are recommended to pay particular attention to
of which are presented in Table 7. According to data analysis complaining behavior of the members and their responses,
and with regard to the statistic of Sobel test (4.256) and the and present recommendations to community managers in
significance level (0.000) that is smaller than 0.05, also with respect with these issues.
regard to the fact that the direct relationship between brand
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