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Brand Communication, Brand Image and Brand Trust As Antecedents of Brand Loyalty in Gauteng Province of South Africa
Brand Communication, Brand Image and Brand Trust As Antecedents of Brand Loyalty in Gauteng Province of South Africa
Brand Communication, Brand Image and Brand Trust As Antecedents of Brand Loyalty in Gauteng Province of South Africa
www.emeraldinsight.com/2040-0705.htm
AJEMS
7,1
Brand communication, brand
image and brand trust as
antecedents of brand loyalty in
124 Gauteng Province of South Africa
Received 17 March 2013
Revised 13 June 2013 Richard Chinomona
22 July 2013 Marketing Division, School of Economic and Business Sciences,
9 June 2014
22 September 2014 University of the Witwatersrand, Johannesburg, South Africa
Accepted 30 September 2014
Abstract
Purpose – The purpose of this paper is to examine the influence of brand communication, brand
image and brand trust as potential antecedents of brand loyalty in a sample of consumers in Gauteng
Province of South Africa.
Design/methodology/approach – Data were collected from 151 respondents, an 89 per cent
response rate, using anonymously completed questionnaires. Research scales were operationalized on
the basis of previous work. Data were collected from 151 respondents, an 89 per cent response rate,
using anonymously completed questionnaires. Research scales were operationalized on the basis of
previous work. Proper modifications were made in order to fit the current research context and
purpose. “Brand communication” measure used six-item scales while “Brand image” used eight-item
scale measure. “Brand trust” and “brand loyalty” used a four-item scale measure. All the measurement
items were measured on a five point Likert-type scales that was anchored by 1 ¼ strongly disagree to
5 ¼ strongly agree to express the degree of agreement.
Findings – The four posited hypotheses were empirically tested. The results supported all the
hypotheses in a significant way except one (H2). Important to note about the study findings is the fact
that brand communication has a stronger effects on brand image than on brand trust. However, brand
image strongly influences brand trust. Notably too, the relationship between brand trust and brand
loyalty is robust. This finding indicates that brand communication can have a strong influence on
brand trust and brand loyalty via brand image. Perhaps this could be due to the fact that customers are
likely to trust and be more loyal to brands with good image and reputation.
Research limitations/implications – Despite the usefulness of this study aforementioned, the
research has its limitations. Most significantly, the sample size was small and limited to Gauteng
Province of South Africa. The study can be strengthened by increasing the sample size and including
participants in other geographical areas. Future studies can also attempt to compare the perceptions
of customers on the current study antecedents of brand loyalty from non-durable/FMCG to other
product/service categories groups.
Practical implications – The findings of this empirical study are expected to have to provide fruitful
implications to both practitioners and academicians. On the academic side, this study makes a
significant contribution to the brand management literature by systematically exploring the impact of
brand communication on brand image, brand trust and brand loyalty in South Africa. On the
practitioners’ side, this study therefore submits that marketers ought to pay attention to both brand
communication and brand image in order to build customer brand trust. By increasing the perceived
level of brand image through effective brand communication, marketers will be able gain customer
brand trust. Eventually, the customers will become loyal to a brand they perceive to trustworthy.
In this regard, from a policy perspective, it is recommended that managers and business strategists
ought to develop policies and strategies aimed at winning customers brand loyal or increasing
African Journal of Economic and customers’ brand trust since such an endeavour is likely to lead to customer retention and marketing
Management Studies cost reduction. There is growing evidence in the extent literature indication that loyal customers are
Vol. 7 No. 1, 2016
pp. 124-139 likely to share their experience with brands with their peers through “word of mouth” (WOM)
© Emerald Group Publishing Limited (Bennetta et al., 2005; Zehir et al., 2011; Russell-Bennett et al., 2013). At the same time, the society will
2040-0705
DOI 10.1108/AJEMS-03-2013-0031 tend to benefit from such information shared by their peers based on their brand experience.
Originality/value – Overall, the current study findings provide tentative support to the Brand loyalty
proposition that brand communication, brand image and brand trust should be recognized
as significant antecedents for gaining and sustaining brand loyalty in South Africa. This
in Gauteng
study therefore, stand to immensely contribute new knowledge to the existing body of brand Province
management literature in Africa – a context that is often most neglected by some researchers
in developing countries.
Keywords South Africa, Brand communication, Brand trust, Brand image, Brand loyalty
Paper type Research paper 125
1. Introduction
Brand loyalty is a focal point of interest for marketing researchers and practitioners. In
fact, it is a concept that has garnered much interest over recent decades, with numerous
companies seeking to establish brand loyalty from their consumers. Among some of the
reasons cited by many firms are arguments that brand loyalty generates numerous
benefits like erecting barriers to competitors, generating greater sales and revenues,
reducing customer acquisition costs and inhibiting customers’ susceptibility to
marketing efforts of competitors (Rundle-Thiele and Mackay, 2001). Thus, brand
loyalty has been used by marketers as a strategic potent weapon to proffer a sustainable
competitive advantage (Keller and Lehmann, 2006; Runyan and Droge, 2008). It is also
argued in the extant literature that a critical issue for the continued success of a firm is its
capability to retain its current customers and make them loyal to its brands (Russell-
Bennett et al., 2007). It is further argued that the costs of attracting a new customer have
been found to be up to six times higher than the costs of retaining old ones (Rosenberg
and Czepiel, 1983). In addition to that, loyal customers are typically less price sensitive
(Krishnamurthi and Raj, 1991), and the presence of a loyal customer base provides the
firm with valuable time to respond to competitive actions (Aaker, 1991). Besides, a large
number of loyal customers is a competitive asset for a brand, and has been identified as a
major determinant of its equity.
However, the million dollar question posed by Russell-Bennett et al. is that – why do
consumers commit to buying a brand time after time? Numerous researchers have
proposed different factors as antecedents of brand loyalty. For instance, some scholars
put forward psychological constructs such as trust, satisfaction, commitment and
perceived value to explain consumer brand loyalty (Morgan and Hunt, 1994;
Sirdeshmukh et al., 2002; Harris and Goode, 2004; Woodside and Walser, 2007; He et al.,
2012). However, some researchers such as Mukherjee and He (2008), Marin et al., (2009)
and He and Li (2010) among other consider social identity motivations such as
consumer self-expression, self-enhancement and self-esteem – brand identity and brand
identification as explanations for consumer brand loyalty. While some studies such as
one by He et al. (2012), have attempted to integrate the psychological and social identity
perspectives to explain brand loyalty, the brand communication-brand loyalty linkages
mediated by psychological or social identity constructs remain under researched.
In addition to this void, there appear to be dearth of studies that investigate these
relationships from a African developing country perspective.
Premised on the identified research gaps, the current study seeks to investigate the
influence of brand communication on brand loyalty and the mediating role of brand
image and brand trust in this relationship in South Africa. Above and beyond, the
current study is expected to make academic and practical contributions to the existing
branding literature and the practice of branding communication in developing
countries – South Africa in particular.
AJEMS The remainder of the paper is structured as follows. The next section presents a
7,1 literature review section. The research methodology section which include data
collection procedure, construct operationalization and measurement, follows thereafter.
The subsequent section offers data analysis and results, and discussion and
implications of the study findings. Lastly, in the concluding section, the limitations of
the study along with suggestions for future research are highlighted.
126
2. Literature review
2.1 Brand communication
A brand is a name, term, sign, drawing or any combination of these, that serves to
identify a firm’s goods or services and differentiate them from those of competitors
(American Marketing Association). According to Jones and Kim brands are assets and
sources of competitive advantage for both manufacturers and retailers. Brands offer
customers a tangible example of their brand statement through their products and/or
experiences, which they provide to the market-place for consumers (Runyan and Droge,
2008). Brand communication is when that idea or image of a product or service is
marketed so that the distinctiveness is identified and recognized by many consumers.
Advertising professionals in business enterprises undertake brand communication not
only to build brand recognition, but also to build good reputations and a set of
standards to which the company should strive to maintain or surpass (Sahin et al.,
2011). The extant literature shows that brand communication has been consistently
found to play an important role in creating positive brand attitudes (Keller and
Lehmann, 2006). It is therefore, the primary integrative element in managing brand
relationships with customers and creates positive brand attitudes such as brand
satisfaction and brand trust (Runyan and Droge, 2008; Sahin et al., 2011). According to
Zehir et al. (2011), the objective of brand communication has been to expose the
audience to a brand, whereby the effect can be maximized in terms of increased
awareness and higher recall, so that the customer will buy the brand which has the
highest recall; and to satisfy the customer to the optimum level. As noted by Sahin et al.
(2011), brand communication can be one-way (indirect communication) and two ways
(one-to-one or direct communication). One-way communication consists of print-TV-
radio advertising, etc. This type of communication mainly aims to increase brand
awareness; to improve brand attitudes such as brand satisfaction and brand trust; and
to affect purchasing behaviour, such as brand choice (Hoek et al., 2000; Zehir et al.,
2011). Two-way or direct brand communication focus mainly on directly influencing
existing-customer buying behaviour and are essentially transaction oriented (Low and
Lamb, 2000; Sahin et al., 2011). Several previous studies have shown that direct brand
communication can influence consumers’ satisfaction for a brand (Panda, 2004; Grace
and O’Cass, 2005; Zehir et al., 2011; Sahin et al., 2011).
Brand Communication H2
H4
H1
Brand Trust Brand Loyalty
Figure 1.
Conceptual model Brand Image
H3
First, the marketers need to communicate the inherent advantage of the brand Brand loyalty
(functionality aspect) to the customers (Su and Rao, 2010). This serves to reflect the in Gauteng
relevant attribute of the product or service and how the brand can solve consumers’
nature demand of consumption and help them solve or avoid the problem they encounter
Province
(Salinas and Pérez, 2009). In addition to that, brand communication serves to disseminate
the external advantages of the brand (symbolism). The purpose of this is to communicate
the relevant attributes that can satisfy or meet consumers’ inner need, such as 129
consumers’ pursuit of self-esteem and social identity. Furthermore, marketers need to
communicate other customers’ experience with a brand, for instance, the customers’
satisfaction experience with using a brand and how this brings happiness and pleasure
that makes them want to repurchase a brand. All in all, this fosters brand image building
in the mind of the customers. Hence, it can be posited that the higher
the level of brand communication, the higher the expected level of brand image
the customers will conceptualize. Prior empirical evidence has found a positive
relationship between brand communication and brand image (e.g. Narayanan and
Manchanda, 2010). Therefore, based on the forgoing discussion and empirical evidence
this study posits that:
H1. Brand communication has a positive significant effect on brand image in South
Africa.
4. Research methodology
4.1 Sample and data collection
The target population for the study was South African consumer in Gauteng who
purchased any consumer goods. The sampling unit was the individual consumer.
A mall intercept survey was used. This method has the advantage of speed, is less
costly and the researcher has control over respondent type. Four shopping malls in
Vanderbijlpark were selected for this survey. Students from the Vaal University of
Technology were recruited as research assistants to distribute and collect the
questionnaires. Of the total of 170 questionnaires distributed, 151 usable questionnaires
were retrieved for the final data analysis, representing a response rate of 89 per cent.
To eliminate differences in response patterns due to different reference points, all
respondents were prompted to answer the questionnaire with reference to non-durable
consumer goods. The reason for selecting this category was that consumers frequently
purchase these products. In this regard, the respondents were asked to identify a
product category in which they had frequently made a purchase intention decision.
Respondents were then asked to name a brand in that category and they were
requested to think about that brand as they complete the entire questionnaire, guided
by the research assistants.
4.2 Measurement instrument and questionnaire design Brand loyalty
Research scales were operationalized on the basis of previous work. Proper modifications in Gauteng
were made in order to fit the current research context and purpose. “Brand communication”
measure used six-item scales adapted from Zehir et al. (2011). “Brand image” used
Province
eight-item scale measure all adapted from Salinas and Pérez (2009). “Brand trust” and
“brand loyalty” used a four-item scale measure adopted from Chaudhuri and Holbrook
(2001). All the measurement items were measured on a five point Likert-type scales that 131
was anchored by 1 ¼ strongly disagree to 5 ¼ strongly agree to express the degree of
agreement. Individual scale items are listed in the Appendix.
5. Data analysis
In this study, structural equation modelling (SEM) approach using Smart partial least
squares (PLS) statistical software (Ringle et al., 2005) was used to test the posited
hypotheses in the conceptual research model. Smart PLS is a recently developed for
simultaneously testing the proposed relationships between all variables in a conceptual
research model using PLS path modelling (Chin, 1998). According to Liljander et al. (2009)
PLS is a prediction-oriented, variance-based approach to SEM, premised on very few
Frequency %
Gender
Male 64 42.4
Female 87 57.6
Total 151 100
Age
⩽30 82 54.3
31-60 51 33.8
⩾60 18 11.9
Total 151 100
Marital status
Married 65 43.0
Single 86 57.0
Total 151 100
Level of education
Primary school 30 19.9
High school 66 43.7
University 41 27.2 Table I.
Postgraduate 14 0.09 Sample demographic
Total 151 100 characteristics
AJEMS assumptions about the distribution of the variables. Further to that, unlike the more
7,1 traditional maximum likelihood SEM techniques such as LISREL and AMOS (Byrne,
2001); Smart PLS requires relatively few observations. Since the current study sample
size is relatively small (151) Smart PLS was found more appropriate and befitting the
purpose of the current study.
Research
construct Items mean value Items SD Cronbach’s α value CR value AVE value Factor loading
study the least squared root of AVE is 0.782 while the highest inter-construct correlation
value is 0.610. This therefore further confirms the existence of discriminant validity. Using
the CR value and cronbach’s α value, the measurement instruments reliability was
assessed and lowest values are 0.894 and 0.842, respectively, which exceeds the
recommended acceptable value of 0.7 (Nunnally and Bernstein, 1994). All in all, these
results confirm the reliability and validity of the measurement used in this study (Table III).
Smart PLS software does not provide goodness-of-fit (GoF) measures for the full
path model as like LISREL and AMOS, but it provides only R2 values for the dependent
variables. However, a method to calculate a global GoF measure was proposed by
Amato et al. (2004), and this method takes into account both the quality of the
measurement model and the structural model (Tenenhaus et al., 2005; Streukens, 2008).
The global GoF statistic was calculated using the following equation:
qffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffi
2
GoF ¼ AVE R
where AVE represent the average of all AVE values for the research variables while R2
represents the average of all R2 values in the full path model.
The calculated global GoF is 0.45, which exceeds the threshold of GoF W 0.36
suggested by Wetzels et al. (2009). Thus, this study concludes that the research model
provides an overall good fit.
Research constructs BC BI BT BL
Path Rejected/
Proposed hypothesis relationship Hypothesis coefficients t-statistics supported
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Corresponding author
Professor Richard Chinomona can be contacted at: rchinos@hotmail.com
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