Professional Documents
Culture Documents
Drivers of Brand Engagement 2019
Drivers of Brand Engagement 2019
Drivers of Brand Engagement 2019
Sumanjit Dass1,2
Rahul Sethi3
Sapna Popli1
V. N. Saxena4
Abstract
Today, all major brands are engaging their stakeholders through online and offline brand communities,
fan clubs and social media groups, with the objective of attracting the right audience. Brand com-
munities have gained importance as a branding tool for marketers because they offer values difficult
to capture elsewhere. An engaged community transports results in numerous areas of the business.
The principal objective of this article is to explore brand communities of radiologist and how these
communities enhance brand engagement in medical equipment industry. The article has used a single
cross-sectional descriptive design and is based on the data collected from 152 users of a large medical
products company that comprised product managers from partner industries and radiologists across
India. The results from this study confirm the proposed model of interactions between variables and
revealed significant relationships between brand communities and brand engagement. The study high-
lights the significance of brand communities and their usage to enhance brand engagement, in high-value
and high-risk product market. The instruments used for the study are validated for the constructs of
brand trust, satisfaction, community and engagement.
Keywords
Brand satisfaction, brand trust, brand communities, brand engagement, healthcare, medical, high-value
high-risk products
Introduction
The Indian healthcare industry in the last 6 years (2010–2016) grew from US$59 to 160 billion, and it is
expected to touch US$260 billion by 2020 (Brand India, 2018). The burgeoning middle class and demand
1
IMT Ghaziabad, Ghaziabad, India.
2
ICFAI University, Dehradun, India.
3
Business Development, Healthcare Division, Barco Electronic Systems (P) Ltd, India.
4
Information Technology, ICFAI Business School, Dehradun, India.
Corresponding author:
Sapna Popli, IMT Ghaziabad, Raj Nagar, Ghaziabad 201001, India.
E-mails: sapnapopli@gmail.com; spopli@imt.edu
2 Global Business Review
for quality healthcare services have been fuelling this growth. Healthcare facilities, private–public
projects, medical diagnostic and pathological laboratories and the health insurance sector are further
providing the boost to the healthcare industry in India (Brand India, 2018). India imports about
70 per cent of medical devices (Ramkumar, 2016), mostly high-end, technological, medical devices for
diagnostic which include multiparameter monitors, defibrillators, transport monitors and radiology
scanners. The rise in imports of medical devices can be related to the growing investment by private
healthcare providers who continue to expand and set up state-of-the-art hospitals in India. Hospitals
groups such as Max, Fortis, Manipal, Aster DM and Apollo are now increasing their footprints in tier
II cities and offering premium services to attract medical tourism (Ramkumar, 2016).
The hospital and diagnostic centres grossed foreign direct investment (FDI) amounting US$5.25
billion between April 2000 and June 2018, as per the data published by the Department of Industrial
Policy and Promotion (DIPP). The hospital industry in India is predicted to rise to `8.6 trillion (US$132.84
billion) by 2022 from `4 trillion (US$61.79 billion) in 2017 at a CAGR of 16–17 per cent (Brand India,
2018). In emerging markets like India, companies like Barco, Eizo, Sony and NDS are bringing such
innovations that are closer to people (Mateo, 2010).
Healthcare providers want to take maximum advantage of this demand by increasing their presence
and services across the country, which has further led to increased investment in people, medical products
and devices in this industry (Tiwari, 2018). Medical products that are of high value like that of a radiology
imaging display, compared with the usual commercial displays, demand a very high involvement of the
consumer in its acceptance and percolation (Patterson, 1993; Samiee, 1994). Owing to the high value of
the product, the decision-making becomes complex with multiple stakeholders getting involved in the
purchasing decision, thereby prolonging the process.
It has thus become imperative that companies with high-value, high-risk product categories like that
of the hospital and medical equipment industry come together with all its stakeholders to form an
engaged community that enables and facilitates informed and a faster decision-making process for the
consumer. This article explores the association of brand communities and brand engagement and how
they can contribute and aid the complex decision-making process in such product categories.
The article is structured, to begin with, an introduction discussing the healthcare industry in India,
followed by a literature review of the four constructs of brand satisfaction, brand trust, brand community,
brand engagement and their associations. The constructs are then modelled through a conceptual
framework. The validation of the model is then presented using factor analysis and structured equation
modeling (SEM).
Review of Literature
Brand Community
Communities can be simply defined as a group of people who come together and interact with one
another towards a common interest. Extant research has proved that brand communities not only motivate
better reach but also add value to the consumer’s journey cycle (McAlexander, Schouten, & Koenig,
2002). Existing research supports the formation of communities as a part of marketing strategy
(McAlexander et al., 2002; Muniz & O’Guinn, 2001; Stokburger-Sauer, 2010). Brand communities are
similar to traditional communities where people advocate, help and support a cause with the only
difference being that in brand communities there are no geographical boundaries (Cova & Pace, 2006;
Muniz & O’Guinn, 2001). Today communities exist in physical and virtual form because of the advent
of technology and the internet. Whether physical or virtual, communities are symbols of traditions,
Dass et al. 3
socially shared consciousness coupled with responsibility towards the society (Muniz & O’Guinn, 2001;
Schau, Muñiz Jr, & Arnould, 2009). Brand communities are responsible at large for creating social
awareness about the brand and have a pivotal role in co-creating a legacy for the brand and its consumers
(Muniz & O’Guinn, 2001). A brand community provides its members with a platform for exchanging
experiences, emotions, feeling about the brand and gain more information and knowledge (Constantin,
Platon, & Orzan, 2014; Fuller, Matzler, & Hoppe, 2008).
Brand communities are considered to be a ‘possible path’ to the ‘Holy Grail of brand loyalty’
(McAlexande et al., 2002; Muniz & O’Guinn, 2001; Thompson & Sinha, 2008). Brand communities
help the marketer to understand the relationship that the consumer shares with the brand, be it positive
or negative (Constantin et al., 2014). Apart from developing customer loyalty, brand communities also
derive engagement. A participative community increases not only the engagement between the brand and
its customers but also induces loyalty (Casaló, Flavián, & Guinalíu, 2007; Koh & Kim, 2004), love
(Cova & Pace, 2006; Vernuccio, Pagani, Barbarossa, & Pastore, 2015) and trust (Chaudhuri & Holbrook,
2001; Jang, Olfman, Ko, Koh, & Kim, 2008) in them.
Radiology is a close-knit community, where the members often share their experiences with other
radiologist related to the matter of best practices, technologies, trends and devices used. Even from
an industry perspective, the radiologists are critical to their business, as many times one radiologist
would visit other facilities to see what is used and understand the reasons for using a particular solution
and recommend it to their companies. Similarly, companies use their existing users (radiologists) as a
reference for new prospects and use their facility to give product demonstrations for their solutions.
These communities are focused on topics related to medicine and radiology. Such brand communities
could offer an exclusive set of benefits for brand engagement and consumer experience through feedback,
advocacy and support that defines an engaged community.
2005). This positive affective state could thus encourage further brand community participation and
brand advocacy driving long-term value for the company (Lawer & Knox, 2006).
Brand Trust
Brand trust is defined as the feeling of safety and security held by a consumer leading to the reduction of
risk for the consumer. A consumer experiences this feeling after his interaction with the brand, thereby
creating informed perceptions about the reliability of the brand (Delgado-Ballester, Munuera-Aleman, &
Yague-Guillen, 2003; Kaur & Gupta, 2012). The relationship between the brand and the consumer
is hugely dependent on brand trust (Elliott & Yannopoulou, 2007; Mann & Sahni, 2011). A brand that offers
the feeling of security, honesty and dependability to its consumers generates brand trust in the process
(Doney & Cannon, 1997). Trust plays a vital role for future interactions between the brand and the consumer
by strengthening the quality and expectations of an on-going relationship (Doney & Cannon, 1997;
Moorman, Zaltman, & Deshpande, 1992). Trust leads to cooperative behaviour and reduces uncertainty
and opportunistic behaviour, thereby enhancing the level of interaction in a brand community, which is
beneficial for both the brand and the consumer (Morgan & Hunt, 1994; Tsai et al., 2012).
Brand trust in healthcare is very critical as healthcare is an intimate service experience and emotions
play an integral role in healthcare decision-making (Kemp, Jillapalli, & Becerra, 2014). Every transaction
in healthcare touches a human life directly or indirectly (Hopkins, 2017).
In this model, the associations are propositioned as developed through the literature. Both brand
satisfaction and brand trust are seen as antecedents of brand communities. The model reflects direct as
well as indirect effects that brand satisfaction has on brand community. Brand engagement is the outcome
variable driven by brand communities in this hypothesized model. SEM has been used to validate this
conceptual framework using data for high-value high-risk products.
The research objective, thus is one, to explore the constructs of brand satisfaction (BS), brand trust
(BT), brand community(BC), brand engagement(BE) and their associations with each other and two is
to propose a conceptual model to understand their inter-relationships and measure the impact of BS,
BT and BC on brand engagements. The four associations that the article expects to explore are the
specific associations of each of the constructs propositioned as (a) brand satisfaction is positively related
to brand trust; (b) brand trust is positively related to the brand community; (c) brand satisfaction is
positively related to the brand community; and (d) brand community impacts brand engagement.
Methodology
Research Instruments
Before the data collection process, the questionnaires were designed based on the measurement items
for the constructs of brand satisfaction, brand trust, brand community and brand engagement as
detailed in Table 2.
Dass et al. 7
All the items were measured on a five-point Likert scale of strongly agree to strongly disagree.
Exploratory factor analysis (EFA) using SPSS 24 was conducted on all the attributes. The analysis
yielded four dominant factors with eigenvalue more than one, which include brand trust, brand
satisfaction, brand community and brand engagement.
We set a lower cut-off of factor loading at 0.5 in the EFA, and there was no item cross loading.
Confirmatory factor analysis is subsequently conducted to confirm the dimension structure, and the
confirmatory factor analysis model achieved a good fit. Regression analysis and SEM were conducted
for impact analysis for the dimensions.
Analysis
A two-stage SEM was carried out to validate the hypothesized model (Hair, Ringle, & Sarstedt, 2013).
In the first stage, CFA was carried out to validate the proposed measurement model (MM), and in the
second stage, the structural model (SM) was developed to test the relationship among the variables as
hypothesized in the theoretical model.
EFA was used to see whether all proposed items (measured variables) load significantly on their
respective factor and, therefore, to identify the underlying relationship between measured variables and
their respective factor/construct.
8 Global Business Review
Pattern Matrixa
Factor
1 2 3 4
BT1 –0.848
BT2 –0.800
BT3 –0.889
BS1 –0.864
BS2 –0.776
BS3 –0.582
BC1 –0.449
BC2 –0.934
BC3 –0.836
BC4 –0.764
BE1 0.657
BE2 0.427
BE3 0.736
BE4 0.757
(continued)
Dass et al. 9
Table 4. (continued)
Pattern Matrixa
Factor
1 2 3 4
BE5 0.771
BE6 0.848
BE7 0.654
BE8 0.644
Source: The authors.
Notes: Extraction method: principal axis factoring.
Rotation method: Oblimin with Kaiser normalization.
a
Rotation converged in 6 iterations.
Table 5.
Table 6 summarizes the path details obtained after testing the relationship between the latent
constructs. It is also clear from Table 6 that all the path coefficients are positive and significant in the
proposed model. Therefore, our proposed model cannot be rejected and, hence, supported. That is, there
is a positive association between brand trust, brand satisfaction, brand community and brand engagement.
All standardized path values were significant at 5 per cent levels, which are given in the tables.
Hypothesized paths are shown in Table 6. All item-wise paths are shown in Table 7.
The path value of BS to BT is strong. But the path values of BS to BC and BS to BT are low, though
the values came significant at the 5 per cent level.
In Indian context, there is no established online/offline brand community for radiologists. Most of the
buying happens through word-of-mouth or rapport building between the vendor and the organization.
Dass et al. 11
That might be the reason behind getting a lower path value between BS and BC; BT and BC. In this
medical healthcare industry, especially among the radiologists, there is no brand community feeling,
rather it is largely driven by utilitarian buying behaviour, which calls for future research scope, on how
to strengthen brand community in this industry by identifying more driving factors.
The theoretical model/framework hypothesized has been validated by the findings of the study. The
model has statistically demonstrated that brand trust, brand satisfaction and brand community have a
significantly positive impact on brand engagement. The overall prediction of the model is quite acceptable
(Cohen, 1988; Falk & Miller, 1992).
12 Global Business Review
Conclusion
As a contribution to the theory, this research helps in identifying those constructs (brand satisfaction,
brand trust, brand community and brand engagement) and their inter-relationships that help in building
greater brand engagement with all its stakeholders. The article brings into perspective how brand
communities through engagement can increase not only loyalty and innovation but also authenticity by
continually acclimating to the mutable needs, benefits and values of the brand tribes that give them
deeper meaning.
This is perhaps a first of its kind research in high-value, high-involvement technology product
category. It has established the validity of the conceptual framework that can be taken up for further
studies in the domain.
Managerial Implications
The go-to-market strategy for this kind of high value and high technology items is always a challenging
one for the marketers. The insights gained from the study can be used to develop a strong brand
community and thereby harness a strong brand engagement to advance the adoption of high-end,
high-resolution medical display equipment among radiologists and other medical equipment users in
India. Brand trust and brand satisfaction emerge as significant variables that affect brand communities
and thereby brand engagement. The findings of this work can help in effective value engineering of the
product and value creation for customers. Also, it may help optimally design marketing campaigns to
promote communities for the specific target audience and ensure the best value from the investment.
Acknowledgements
The authors are grateful to the anonymous referees of the journal for their extremely useful suggestions to improve
the quality of the article. Usual disclaimers apply.
Funding
The authors received no financial support for the research, authorship and/or publication of this article.
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