Loyalty towards telco service providers: the fundamental role of consumer brand engagement

Abstract

Purpose

Customers nowadays would expect more than just the sales process. As loyal customers are crucial for businesses, research indicates that engaged consumers exhibit greater loyalty to brands. Despite its significance, consumer brand engagement (CBE) remains a concept worth deeper investigation. Building on the cognitive-affective-conative (CAC) model, this paper aims to address this lacuna by examining the precursors of CBE and tests CBE as a higher-order construct consisting of three formative dimensions, namely, cognitive processing, affection and activation.

Design/methodology/approach

Using a non-probability purposive sampling method, data was collected from a sample of 237 Malaysian consumers who subscribe to any of the local telco service providers. Data was then analysed using the partial least squares structural equation modelling (PLS-SEM) technique.

Findings

Communication effectiveness, core service quality and corporate social responsibility strategy are important determinants that explain consumers’ brand engagement. Furthermore, it was found that CBE prompts consumer satisfaction, which then leads to brand loyalty towards a telco service provider. Additionally, confirmatory tetrad analysis reassured CBE as a formative construct.

Research limitations/implications

CBE should be best assessed as a higher-order reflective formative construct composed of cognitive processing, affection and activation.

Practical implications

Telco companies seeking to attain brand loyalty and consumer satisfaction should ensure that their customers are engrossed, inspired and energized in their interaction with the brands.

Originality/value

Drawing on the CAC model, this study contributes to consumer marketing literature by filling the gap regarding the precursors and outcomes of CBE. In addition, the multidimensionality of CBE as a higher-order reflective formative construct was established.

Citation

Ooi, S.K., Yeap, J.A.L. and Low, Z. (2022), "Loyalty towards telco service providers: the fundamental role of consumer brand engagement", European Business Review, Vol. 34 No. 1, pp. 85-102. https://doi.org/10.1108/EBR-10-2019-0271