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Date Published:
31/07/2020
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Tran, T. N., & Tieu, V. T. (2021). The impacts of consumer value and brand identification on brand loyalty and electronic word of mouth: the case of smartphone market in Ho Chi Minh City. Journal of International Economics and Management, 20(2), 60-74. https://doi.org/10.38203/jiem.020.2.0011
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The impacts of consumer value and brand identification on brand loyalty and electronic word of mouth: the case of smartphone market in Ho Chi Minh City
Main Article Content
Abstract
Finding out the antecedents of brand loyalty is an interesting topic. The paper’s target is answering the question “Do consumer value and consumer-brand identification lead to consumer’s loyalty with the brand and positive electronic word of mouth in the context of smartphone market in Ho Chi Minh City?”. The authors used the PLS-SEM (Partial least squares structural equation modeling) to verify the relationship between independent variables and dependent variables using data collected from 320 smartphone users. The study shows that proposed antecedents have influences on dependent constructs. Such discoveries have both theoretical and practical implications. In theory, they support the theory of consumer value and the approach of brand identification. In practice, smartphone producers should provide gadgets with excellent performance and unique identity to keep consumers’ loyalty. As a result, companies will have active ambassadors for their brand.
Article Details
Keywords
Consumer value, Brand identification, Brand loyalty, Electronic word of mouth, Smart PLS
References
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He, H., Li, Y. and Harris, L. (2012), “Social identity perspective on brand loyalty”, Journal of Business Research, Vol. 65 No. 5, pp. 648 - 657.
Hennig-Thurau, T., Gwinner, K.P., Walsh, G. and Gremler, D.D. (2004), “Electronic word-of-mouth via consumer-opinion platforms: what motivates consumers to articulate themselves on the Internet?”, Journal of Interactive Marketing, Vol. 18 No. 1, pp. 38 - 52.
Henseler, J., Ringle, C.M. and Sarstedt, M. (2014), “A new criterion for assessing discriminant validity in variance-based structural equation modeling”, Journal of the Academy of Marketing Science, Vol. 43 No. 1, pp. 115 - 135.
Henseler, Jörg, Ringle, C. and Sinkovics, R. (2009), “The use of partial least squares path modeling in international marketing”, Advances in International Marketing, Vol. 20, pp. 277 - 319.
Holbrook, M.B. (1994), Service quality: new directions in theory and practice, Thousand Oaks: SAGE Publications, Inc.
Hsieh, S.H. and Tseng, T.H. (2017), “Playfulness in mobile instant messaging: examining the influence of emoticons and text messaging on social interaction”, Computers in Human Behavior, Vol. 69, pp. 405 - 414.
Karjaluoto, H., Jayawardhena, C., Leppäniemi, M. and Pihlström, M. (2012), “How value and trust influence loyalty in wireless telecommunications industry”, Telecommunications Policy, Vol. 36 No. 8, pp. 636 - 649.
Kim, H.W., Gupta, S. and Koh, J. (2011), “Investigating the intention to purchase digital items in social networking communities: a customer value perspective”, Manage, Vol. 48 No. 6, pp. 228 - 234.
Kim, W.G., Lim, H. and Brymer, R.A. (2015), “The effectiveness of managing social media on hotel performance”, International Journal of Hospitality Management, Vol. 44, pp. 165 - 171.
Kressmann, F., Sirgy, M.J., Herrmann, A., Huber, F., Huber, S. and Lee, D.J. (2006), “Direct and indirect effects of self-image congruence on brand loyalty”, Journal of Business Research, Vol. 59 No. 9, pp. 955 - 964.
Lam, S.K., Ahearne, M., Hu, Y. and Schillewaert, N. (2010), “Resistance to brand switching when a radically new brand is introduced: a social identity theory perspective”, Journal of Marketing, Lam, Son K.: sonlam@terry.uga.edu: American Marketing Association.
Liao, C.H. and Hsieh, I. (2013), “Determinants of consumer’s willingness to purchase gray-market smartphones”, Journal of Business Ethics, Vol. 114 No. 3, pp. 409 - 424.
Luo, Q. and Zhong, D. (2015), “Using social network analysis to explain communication characteristics of travel-related electronic word-of-mouth on social networking sites”, Tourism Management, Vol. 46, pp. 274 - 282.
Mishra, V. (2018), “Vietnam smartphone market returns to double digit growth in Q2 2018’, Counterpointresearch.Com, available at https://www.counterpointresearch.com/vietnamsmartphone-market-returns-double-digit-growth-q2-2018/.
Oliver, R.L. (1999), “Whence Consumer Loyalty?”, Journal of Marketing, Vol. 63 No. 1, pp. 33 - 44.
Park, J. and Han, S. (2013), “Defining user value: A case study of a smartphone”, International Journal of Industrial Ergonomics, Vol. 43 No. 4, pp. 274 - 282.
Pihlström, M. and Brush, G.J. (2008), “Comparing the perceived value of information and entertainment mobile services”, Psychology & Marketing, Vol. 25 No. 8, pp. 732 - 755.
Sarstedt, M., Hair, J.F., Cheah, J.H., Becker, J.M. and Ringle, C.M. (2019), “How to specify, estimate, and validate higher-order constructs in PLS-SEM”, Australasian Marketing Journal (AMJ), Vol. 27 No. 3, pp. 197 - 211.
Shankar, V., Smith, A.K. and Rangaswamy, A. (2003), “Customer satisfaction and loyalty in online and offline environments”, International Journal of Research in Marketing, Vol. 20 No. 2, pp. 153 - 175.
Sheth, J.N., Newman, B.I. and Gross, B.L. (1991), “Why we buy what we buy: a theory of consumption values”, Journal of Business Research, Vol. 22 No. 2, pp. 159 - 170.
Stokburger-Sauer, N., Ratneshwar, S. and Sen, S. (2012), “Drivers of consumer–brand identification”, International Journal of Research in Marketing, Vol. 29 No. 4, pp. 406 - 418.
Stone, M. (1974), “Cross-validatory choice and assessment of statistical predictions”, Journal of the Royal Statistical Society. Series B (Methodological), Vol. 36 No. 2, pp. 111 - 147.
Sweeney, J.C. and Soutar, G.N. (2001), “Consumer perceived value: the development of a multiple item scale”, Journal of Retailing, Vol. 77 No. 2, pp. 203 - 220.
ShopDunk. (2020), “10 ly do nguoi Viet mua Iphone, bat ngo dieu thu bay”, available at https://tintuc.
shopdunk.com/10-ly-do-nguoi-viet-mua-iphone.html (accessed 04 April 2020).
Thanh, N.D., Duong, L.T.T. and That, N.H. (2020), “Investigating determinants of competitiveness of the retail banking service in Vietnam: a customer approach”, Journal of International Economics and Management, Vol. 20 No. 1, pp. 80 - 100.
Thu, T.M. and Nhung, D.T.H. (2019), “Empirical relationship among dimensions of customerbased brand equity in e-tailing service: a study in Vietnam context”, Journal of International Economics and Management, Vol. 124, pp. 3 - 23.
Zingnews. (2014), “Thi truong smartphone Viet: ngon nhung khong de xoi”, available at https://news.
zing.vn/thi-truong-smartphone-viet-ngon-nhung-khong-de-xoi-post389254.html (accessed 04 April 2020).
Walsh, S.P., White, K.M. and Young, R.M. (2010), “Needing to connect: the effect of self and others on young people’s involvement with their mobile phones”, Australian Journal of Psychology, Vol. 62 No. 4, pp. 194 - 203.
Zeithaml, V.A., Berry, L.L. and Parasuraman, A. (1996), “The behavioral consequences of service quality”, Journal of Marketing, Vol. 60 No. 2, pp. 31 - 46.
Anderson, R.E. and Srinivasan, S.S. (2003), “E-satisfaction and e-loyalty: a contingency framework”, Psychology & Marketing, Vol. 20 No. 2, pp. 123 - 138.
Arruda Filho, E.J., Cabusas, J. and Dholakia, N. (2010), “Social behavior and brand devotion among iPhone innovators”, International Journal of Information Management, Vol. 30 No. 6, pp. 475 - 480.
Bagozzi, R.P., Yi, Y. and Phillips, L.W. (1991), “Assessing construct validity in organizational research”, Administrative Science Quarterly, Vol. 36 No. 3, pp. 421 - 458.
Baumgartner, H., Sujan, M. and Bettman, J.R. (1992), “Autobiographical memories, affect, and consumer information processing”, Journal of Consumer Psychology, Vol. 1 No. 1, pp. 53 - 82.
Bhattacharya, C.B. and Sen, S. (2003), “Consumer-company identification: a framework for understanding consumers’ relationships with companies”, Journal of Marketing, Vol. 67 No. 2, pp. 76 - 88.
Chaudhuri, A. and Holbrook, M.B. (2001), “The chain of effects from brand trust and brand affect to brand performance: the role of brand loyalty”, Journal of Marketing, Vol. 65 No. 2, pp. 81 - 93.
Cheung, C.M.K. and Thadani, D.R. (2012), “The impact of electronic word-of-mouth communication: a literature analysis and integrative model”, Decision Support Systems, Vol. 54 No. 1, pp. 461 - 470.
Chu, S.C. and Kim, Y. (2011), “Determinants of consumer engagement in electronic word-of-mouth (eWOM) in social networking sites”, International Journal of Advertising, Vol. 30 No. 1, pp. 47 - 75.
Cohen, J. (1988), Statistical power analysis for the behavioral sciences, Hillsdale, NJ: Lawrence Erlbaum Associates, Publishers.
Dick, A.S. and Basu, K. (1994), “Customer loyalty: toward an integrated conceptual framework”, Journal of the Academy of Marketing Science, US: Sage Publications.
Geisser, S. (1974), “A predictive approach to the random effect model”, Biometrika, Vol. 61 No. 1, pp. 101 -107.
Hair, J.F., Hult, G.T.M., Ringle, C.M. and Sarstedt, M. (2017), A primer on partial least squares structural equation modeling (PLS-SEM) (2nd ed.), Thousand Oaks: SAGE Publications.
Hair, J.F., Ringle, C.M. and Sarstedt, M. (2011), “PLS-SEM: indeed a silver bullet”, Journal of Marketing Theory and Practice, Vol. 19 No. 2, 139 - 152.
Hansen, J.D., Beitelspacher, L.S. and Deitz, G.D. (2013), “Antecedents and consequences of consumers’ comparative value assessments across the relationship life cycle”, Journal of Business Research, Vol. 66 No. 4, pp. 473 - 479.
He, H., Li, Y. and Harris, L. (2012), “Social identity perspective on brand loyalty”, Journal of Business Research, Vol. 65 No. 5, pp. 648 - 657.
Hennig-Thurau, T., Gwinner, K.P., Walsh, G. and Gremler, D.D. (2004), “Electronic word-of-mouth via consumer-opinion platforms: what motivates consumers to articulate themselves on the Internet?”, Journal of Interactive Marketing, Vol. 18 No. 1, pp. 38 - 52.
Henseler, J., Ringle, C.M. and Sarstedt, M. (2014), “A new criterion for assessing discriminant validity in variance-based structural equation modeling”, Journal of the Academy of Marketing Science, Vol. 43 No. 1, pp. 115 - 135.
Henseler, Jörg, Ringle, C. and Sinkovics, R. (2009), “The use of partial least squares path modeling in international marketing”, Advances in International Marketing, Vol. 20, pp. 277 - 319.
Holbrook, M.B. (1994), Service quality: new directions in theory and practice, Thousand Oaks: SAGE Publications, Inc.
Hsieh, S.H. and Tseng, T.H. (2017), “Playfulness in mobile instant messaging: examining the influence of emoticons and text messaging on social interaction”, Computers in Human Behavior, Vol. 69, pp. 405 - 414.
Karjaluoto, H., Jayawardhena, C., Leppäniemi, M. and Pihlström, M. (2012), “How value and trust influence loyalty in wireless telecommunications industry”, Telecommunications Policy, Vol. 36 No. 8, pp. 636 - 649.
Kim, H.W., Gupta, S. and Koh, J. (2011), “Investigating the intention to purchase digital items in social networking communities: a customer value perspective”, Manage, Vol. 48 No. 6, pp. 228 - 234.
Kim, W.G., Lim, H. and Brymer, R.A. (2015), “The effectiveness of managing social media on hotel performance”, International Journal of Hospitality Management, Vol. 44, pp. 165 - 171.
Kressmann, F., Sirgy, M.J., Herrmann, A., Huber, F., Huber, S. and Lee, D.J. (2006), “Direct and indirect effects of self-image congruence on brand loyalty”, Journal of Business Research, Vol. 59 No. 9, pp. 955 - 964.
Lam, S.K., Ahearne, M., Hu, Y. and Schillewaert, N. (2010), “Resistance to brand switching when a radically new brand is introduced: a social identity theory perspective”, Journal of Marketing, Lam, Son K.: sonlam@terry.uga.edu: American Marketing Association.
Liao, C.H. and Hsieh, I. (2013), “Determinants of consumer’s willingness to purchase gray-market smartphones”, Journal of Business Ethics, Vol. 114 No. 3, pp. 409 - 424.
Luo, Q. and Zhong, D. (2015), “Using social network analysis to explain communication characteristics of travel-related electronic word-of-mouth on social networking sites”, Tourism Management, Vol. 46, pp. 274 - 282.
Mishra, V. (2018), “Vietnam smartphone market returns to double digit growth in Q2 2018’, Counterpointresearch.Com, available at https://www.counterpointresearch.com/vietnamsmartphone-market-returns-double-digit-growth-q2-2018/.
Oliver, R.L. (1999), “Whence Consumer Loyalty?”, Journal of Marketing, Vol. 63 No. 1, pp. 33 - 44.
Park, J. and Han, S. (2013), “Defining user value: A case study of a smartphone”, International Journal of Industrial Ergonomics, Vol. 43 No. 4, pp. 274 - 282.
Pihlström, M. and Brush, G.J. (2008), “Comparing the perceived value of information and entertainment mobile services”, Psychology & Marketing, Vol. 25 No. 8, pp. 732 - 755.
Sarstedt, M., Hair, J.F., Cheah, J.H., Becker, J.M. and Ringle, C.M. (2019), “How to specify, estimate, and validate higher-order constructs in PLS-SEM”, Australasian Marketing Journal (AMJ), Vol. 27 No. 3, pp. 197 - 211.
Shankar, V., Smith, A.K. and Rangaswamy, A. (2003), “Customer satisfaction and loyalty in online and offline environments”, International Journal of Research in Marketing, Vol. 20 No. 2, pp. 153 - 175.
Sheth, J.N., Newman, B.I. and Gross, B.L. (1991), “Why we buy what we buy: a theory of consumption values”, Journal of Business Research, Vol. 22 No. 2, pp. 159 - 170.
Stokburger-Sauer, N., Ratneshwar, S. and Sen, S. (2012), “Drivers of consumer–brand identification”, International Journal of Research in Marketing, Vol. 29 No. 4, pp. 406 - 418.
Stone, M. (1974), “Cross-validatory choice and assessment of statistical predictions”, Journal of the Royal Statistical Society. Series B (Methodological), Vol. 36 No. 2, pp. 111 - 147.
Sweeney, J.C. and Soutar, G.N. (2001), “Consumer perceived value: the development of a multiple item scale”, Journal of Retailing, Vol. 77 No. 2, pp. 203 - 220.
ShopDunk. (2020), “10 ly do nguoi Viet mua Iphone, bat ngo dieu thu bay”, available at https://tintuc.
shopdunk.com/10-ly-do-nguoi-viet-mua-iphone.html (accessed 04 April 2020).
Thanh, N.D., Duong, L.T.T. and That, N.H. (2020), “Investigating determinants of competitiveness of the retail banking service in Vietnam: a customer approach”, Journal of International Economics and Management, Vol. 20 No. 1, pp. 80 - 100.
Thu, T.M. and Nhung, D.T.H. (2019), “Empirical relationship among dimensions of customerbased brand equity in e-tailing service: a study in Vietnam context”, Journal of International Economics and Management, Vol. 124, pp. 3 - 23.
Zingnews. (2014), “Thi truong smartphone Viet: ngon nhung khong de xoi”, available at https://news.
zing.vn/thi-truong-smartphone-viet-ngon-nhung-khong-de-xoi-post389254.html (accessed 04 April 2020).
Walsh, S.P., White, K.M. and Young, R.M. (2010), “Needing to connect: the effect of self and others on young people’s involvement with their mobile phones”, Australian Journal of Psychology, Vol. 62 No. 4, pp. 194 - 203.
Zeithaml, V.A., Berry, L.L. and Parasuraman, A. (1996), “The behavioral consequences of service quality”, Journal of Marketing, Vol. 60 No. 2, pp. 31 - 46.