Role of satisfaction in an integrative model of brand loyalty

Abstract

Abstract Purpose – Despite an extensive body of research on brand loyalty, it has been demonstrated that customer‐based brand research is still in a state of evolution. The purpose of this paper is to develop and test alternative models of the brand loyalty process by examining the effects of customer orientation, brand association, perceived service quality, and satisfaction on brand loyalty utilizing data from South Korea and China. Further, relatively little attention has been given to the competing process of individual‐level brand loyalty. Thus, this paper aims to examine the relationships among satisfaction and other key constructs that may potentially affect brand loyalty. Design/methodology/approach – Structural equation analysis of six competing models is provided. Although competing models are supported by prior research, they differ with respect to the particular mechanism that underlies the alternative explanations and the mediating effects. In this study, Armstrong's notion is adopted to show that the role of the scientist is changed from advocating a single hypothesis to evaluating which of a number of competing models is more appropriate. The current research attempts to empirically test competing mechanisms pertaining to how each of the variables affects brand loyalty. Findings – First, the research model fits well and outperforms other competing models. Second, the results are consistent with the proposed model even though there are cultural differences between Chinese and South Korean consumers. Finally, the research model empirically establishes the mediating role of satisfaction in the context of brand loyalty formation. Originality/value – This study is a contribution to extant research because it empirically establishes the inter‐relationships between important variables affecting brand loyalty (e.g. customer orientation, satisfaction, and perceived quality) across two cultures (South Korea and China), thus further enhancing the efficacy of the obtained results.

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