Predicting smartphone brand loyalty:

Consumer value and consumer-brand

identification perspectives
INTERNATIONAL JOURNAL OF INFORMATION MANAGEMENT
CHING-HSUAN YEHA, YI-SHUN WANGA,∗, KAILI YIEHB
Consumer value Theory

 The theory focuses on consumption values, explaining why consumers choose to buy or
not buy (or to use or not use) a specific product, why consumers choose one product type
over another, and why consumers choose one brand over another.

 The theory is applicable to choices involving a full range of product types (consumer non
durables, consumer durables, industrial goods, and services
 Three fundamental propositions are axiomatic to the theory:
 Consumer choice is a function of multiple consumption values.
 The consumption values make differential contributions in any given choice situation.
 The consumption values are independent.
Constructs
Assumptions

 Functional Value- The perceived utility acquired from an alternative’s capacity for
functional, utilitarian, or physical performance
  An alternative’s functional value may be derived from its characteristics or attributes
(Ferber, 1973), such as reliability, durability, and price. For example, the decision to
purchase a particular automobile might be based on fuel economy and maintenance
record.
 Social Value - The perceived utility acquired from an alternative’s association with one or
more specific social groups. Choices involving highly visible products (e.g., clothing,
jewelry) and goods or services to be shared with others (e.g., gifts, products used in
entertaining) are often driven by social value. 
 Emotional Value-The perceived utility acquired from an alternative’s capacity to arouse
feelings or affective states. Goods and services are frequently associated with emotional
responses (the fear aroused while viewing a horror movie). Emotional value is often
associated with aesthetic alternatives (e.g., religion, causes).
 Epistemic Value- perceived utility acquired from an alternative’s capacity to arouse curiosity,
provide novelty, and/or satisfy a desire for knowledge. Exploratory, novelty seeking, and
variety seeking motives have been suggested to activate product search, trial, and switching
behaviors (Katz and Lazarsfeld, 1955).
The consumer is bored or satiated with his or her current brand (as in trying a new type of coffee), is
curious (as in visiting a new night club)
 Conditional Value- The perceived utility acquired by an alternative as the result of the specific
situation or set of circumstances facing the choice maker.
 An alternative’s utility will often depend on the situation. For example, some products only have
seasonal value (e.g., Christmas cards), some are associated with “once in a lifetime” events (e.g., a
wedding gown), and some are used only in emergency situations (e.g., ambulance service). Many
products have more subtle conditional associations (e.g., popcorn at the movies).
Differential Contributions

 The five consumption values identified by the theory make differential contributions in
specific choice contexts. For example, a consumer may decide to purchase gold coins as
an inflation hedge (functional value), and also realize a sense of security (emotional
value) from the investment. Social, epistemic, and conditional value may have little
influence. 
 In contrast, the same consumer may purchase a gold bracelet because it will be admired
by those whose taste she or he respects (social value). The other four consumption values
may have little influence.
 Within a single product class, the brand, product type, and “buy or not buy” choices may
be driven by completely different consumption value
Aim of Study

 To sum up, this study has two main objectives:

 1. To understand the relative influence of determinants (i.e., value and identification) on
brand loyalty.
 2. To understand the moderating effects of individual heterogeneity (i.e., age and gender)
on the relationships between value/identification and loyalty.
Conceptual Model
Hypothesis

 Functional value positively relates to brand loyalty.

 Emotional value positively relates to brand loyalty.
 Social value positively relates to brand loyalty.
 Brand identification positively relates to brand loyalty.
Moderators
Age
 H5a. The positive relationship between functional
value and brand loyalty is greater when age decreases.
 H5b. The positive relationship between emotional
value and brand loyalty is greater when age decreases.
 H5c. The positive relationship between social value
and brand loyalty is greater when age decreases.
 H5d. The positive relationship between brand
identification and brand loyalty is greater when age
decrease.
Gender
 H6a. The positive relationship between functional value
on brand loyalty is greater for men than for women.
 H6b. The positive relationship between emotional value
on brand loyalty is greater for men than for women.
 H6c. The positive relationship between social value on
brand loyalty is greater for women than for men.
 H6d. The positive relationship between brand
identification on brand loyalty is greater for women
than for men.
Research Method

 An online survey was created to collect data. Respondents were voluntary recruits from
the largest bulletin board system in Taiwan.
 Thus, the total number of valid responses was 157.
 The demographics of the respondents are displayed in Table 2. About 55% of the
respondents were male. Their ages ranged from 17 to 58, and the average age of the
sample was about 27 years old. The age distribution showed that 68% respondents were in
the 21–30 group.
Results
Theoretical implications

 First, this study validates that consumer value and brand identification are two dominant
grounds to predict consumers’ loyal intentions.
 Second, this study provides evidence for the effect of consumer value on brand loyalty
with the 3-value framework. The significance of functional value, emotional value, and
social value indicates that consumers stay with a certain smartphone brand based on a
variety of value evaluations.
 Third, this study verifies the existence of moderating role for age differences but not for
gender differences. Not all demographics are excellent predictors to segment consumer
behaviors.
Managerial implications

 Given that consumer value and brand identification contribute to brand loyalty,
smartphone marketers should not only deliver functional, emotional, and social value to
consumers, but also establish brand identity in terms of attractiveness, distinctiveness, and
salience to earn consumers’ identification with the brand (Kim, Han, & Park, 2001).
 Considering the relative importance of the four loyalty drivers, smartphones managers
have to put more emphasis on the individual-related drivers (i.e., functional value,
emotional value, and brand identification).
 This study indicates that out of the three individual-related drivers, emotional value is the
most significant, followed by brand identification, and lastly, functional value
 Therefore, managers should allocate their resources relative to their importance.
Furthermore, the results may imply that the younger consumers may show brand loyalty
because of brand identification and the middle-aged consumers may favor
emotional/social value and then tend to repurchase and recommend. Smartphone
managers should communicate identity attractiveness to younger consumers and
emotional and social value to the middle-aged and the elderly