Promoting brand engagement behaviors and loyalty through perceived service value and innovativeness

Abstract

PurposeThe purpose of this study is to investigate the role of perceived value and innovativeness (service concept newness and relative advantage) in promoting customer brand engagement behaviors (CBEBs) and brand loyalty.Design/methodology/approachThe conceptual model was empirically tested using nationwide survey data from 430 customers of Uber in Australia. The data were analyzed using structural equation modeling.FindingsThe results of this study show that collecting brand information is positively influenced by perceived value, service concept newness and relative advantage. Participating in brand marketing activities is positively influenced by service concept newness and relative advantage. Interacting with others is positively influenced by perceived value and service concept newness. Subsequently, brand loyalty is positively influenced by participating in brand marketing activities and interacting with others. The direct impacts of perceived value and relative advantage on brand loyalty are also established.Research limitations/implicationsThis study only collected data from Uber customers. Another limitation of this study is the use of cross-sectional data.Practical implicationsTo promote brand loyalty, service innovation needs to have both the right characteristics (i.e. perceived value, service concept newness and relative advantage) and practices that foster customer brand engagement behaviors.Originality/valueAlthough service-dominant logic (SDL) is a theoretical lens used by research in the areas of service innovation and customer engagement, empirical studies that integrate the two areas remain limited. The findings of this study suggest a new mechanism in which service innovation can increase loyalty through increased CBEBs.