The Mediating Role of Consumer Satisfaction in the Relationship between Brand Equity and Brand Loyalty based on PLS-SEM Model

Shen Lei,Luo Chu

doi:10.5539/ibr.v8n2p62

Abstract

This paper implements a PLS-SEM model to investigate the relationship between brand equity, consumer satisfaction and brand loyalty. Based on a sample of 1840 Chinese sports brands customers, the findings of the model testing confirm that perceived quality, perceived value of cost and price premium are significant dimensions of brand equity. Among these three, perceived value of cost is the most important. The findings also suggest that behavioral loyalty and attitudinal loyalty are effective on brand loyalty, and attitudinal loyalty has more positive influence on brand loyalty than behavioral loyalty does. The current research indicates that brand equity has a positive relationship with consumer satisfaction, and consumer satisfaction has a positive influence on brand loyalty. Further, this study reveals that brand equity has positive influence on brand loyalty partially mediated by consumer satisfaction.

Highlights

Brands are one of the vital assets of a firm (Keller & Lehmann, 2003; Lehmann & Srinivasan, 2014)
The findings suggest that behavioral loyalty and attitudinal loyalty are effective on brand loyalty, and attitudinal loyalty has more positive influence on brand loyalty than behavioral loyalty does
The current research indicates that brand equity has a positive relationship with consumer satisfaction, and consumer satisfaction has a positive influence on brand loyalty

Summary

Introduction

Brands are one of the vital assets of a firm (Keller & Lehmann, 2003; Lehmann & Srinivasan, 2014). Brand equity has been one of the most important marketing concepts in both academia and practice (Srinivasan et al, 2005). By the 1980s, marketing researchers discovered brand equity had an influence on customer satisfaction (Lanza, 2008). Brand loyalty describes marketing phenomena, and is typically associated with customer satisfaction (Bennett, 2001). Scholars often study brand equity, brand loyalty and consumer satisfaction issues, only a few of them have focused on the relationship of brand equity, consumer satisfaction and brand loyalty in recent years (for example, Shen & Luo, 2012; Nam et al, 2011). Using partial least squares structural equation modeling approach (PLS-SEM) statistical methods and taking advantage of first-hand data from 1840 Chinese sports brands customers, the aims of this study are: confirming the significant dimensions of brand equity and main factors influencing brand loyalty; investigating the relationship between brand equity, consumer satisfaction and brand loyalty

Objectives

Methods

Results

Conclusion