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How does brand innovativeness affect brand loyalty?

Ravi Pappu (University of Queensland Business School, University of Queensland, Brisbane, Australia)
Pascale G. Quester (Adelaide Business School , The University of Adelaide, Adelaide, Australia)

European Journal of Marketing

ISSN: 0309-0566

Article publication date: 8 February 2016

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Abstract

Purpose

This paper aims to examine how consumers’ perceptions of innovativeness affect an important brand performance metric: consumer brand loyalty. Specifically, the mediating role of perceived quality in this relationship is explained using signaling theory.

Design/methodology/approach

The conceptual model was tested in two empirical studies for three global consumer electronics brands in two product categories. Data were collected using a mall-intercept approach from consumers at a major shopping precinct in a metropolitan city. The data were analyzed using structural equation modeling.

Findings

The results provide compelling evidence for the proposed mediation relationship. Study 1 shows that perceived quality fully transmits the impact of brand innovativeness on to brand loyalty. Study 2 confirms this mediation relationship.

Practical implications

The results can help product managers in their brand management and promotion of new products.

Originality/value

Emerging research on consumer-level effects of innovativeness provides conflicting advice regarding how consumers’ perceptions of brand innovativeness affect intangible assets such as loyalty toward the brand. The present research reconciles contradictory findings in the literature by uncovering a different route through which consumer perceptions of brand innovativeness affect a key brand performance metric: brand loyalty. Specifically, the present study fills an important knowledge gap in the innovativeness literature and deepens our understanding of the relationship between brand innovativeness and brand loyalty by empirically examining and confirming the role of a hereto overlooked intervening variable, perceived quality.

Keywords

Acknowledgements

The authors acknowledge grant funding from the University of New England. The authors thank Frank Alpert, Bettina Cornwell and Len Coote for suggestions on an earlier version of the manuscript and Vinh Lu and Teegan Green for research assistance and assistance with the data collection.

Citation

Pappu, R. and Quester, P.G. (2016), "How does brand innovativeness affect brand loyalty?", European Journal of Marketing, Vol. 50 No. 1/2, pp. 2-28. https://doi.org/10.1108/EJM-01-2014-0020

Publisher

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Emerald Group Publishing Limited

Copyright © 2016, Emerald Group Publishing Limited

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