Facilitation of consumer loyalty toward branded applications: The dual-route perspective

Abstract

Although many brands develop mobile applications (apps) to build relationships with consumers, most branded apps fail to retain consumers’ loyalty. This study examines the facilitation of consumer loyalty toward branded apps (continuance intention, in-app purchase intention, and word-of-mouth intention) from the dual-route perspective. One route is the affective (relationship) route, where brand benefits (functional benefits, experiential benefits, symbolic benefits, and monetary benefits) drive parasocial interactions between consumers and the brand, which, in turn, influences branded app loyalty. The other route is the utility route, where system characteristics (system quality and information quality) affect perceived usefulness, which, in turn, facilitates branded app loyalty. An online survey was conducted, and the research model was empirically tested using partial least squares structural equation modeling. The findings support the dual-route perspective according to which both affective and utilitarian paths facilitate branded app loyalty. The key theoretical contribution of this study is that it moves beyond the utilitarian path and finds the affective (relationship) path to give a more complete picture of the facilitation of consumer loyalty in the branded app context. A strategy is provided to suggest to practitioners how to design branded apps to facilitate consumer loyalty.