Effects of e-loyalty program and social media marketing activity on brand relationship quality

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Effects of e-loyalty program and social media marketing activity on brand relationship quality

 

Author: Lee, Tak Lee Norman
Title: Effects of e-loyalty program and social media marketing activity on brand relationship quality
Degree: D.B.A.
Year: 2015
Subject: Branding (Marketing)
Customer loyalty programs -- Case studies
Internet marketing.
Social media.
Hong Kong Polytechnic University -- Dissertations
Department: Faculty of Business
Pages: xii, 132 pages : illustrations
Language: English
InnoPac Record: http://library.polyu.edu.hk/record=b2890581
URI: http://theses.lib.polyu.edu.hk/handle/200/8464
Abstract: E-loyalty programs have been offered across a wide range of markets for a long time. The airline industry marked a chapter in the history of innovative e-loyalty programs with their effective use of technology. During the last three decades, while e-loyalty programs have become ubiquitous, both researchers and practitioners still question their effectiveness. Although social media use is clearly the upcoming trend for marketing in the 21st century, both academics and business leaders have raised concerns over how to measure its effectiveness. Researchers and practitioners have commonly agreed that the ultimate objective of e-loyalty programs and social media marketing is to build a brand relationship with customers. However, little research has been conducted on the effects that e-loyalty programs and social media marketing have on brand relationships. In this study, we investigate the controversial issue of whether social media can enhance brand by examining the implementation of two e-loyalty programs. We assess the performance of these programs with reference to a relationship framework that includes e-loyalty program quality (ELPQ), e-loyalty program value (ELPV), social media marketing activity (SMMA) and brand relationship quality (BRQ)all evaluated through structural equation modeling (SEM). The moderating role of ELPV on the link between SMMA and BRQ is also hypothesized and tested. The theoretical model is empirically tested using data from a survey involving over 4,220 customers of two famous restaurant groups in Hong Kong, which have a total of over 60 outlets and over 35,000 e-loyalty program members. The results of this study show that the effects of both SMMA and ELPV on BRQ are positive and statistically significant. ELPV has a significant moderating effect on the relationship between SMMA and BRQ.
This study sheds light on the use of BRQ as a customer-brand relationship measure. The legacy e-loyalty programs and trendy social media marketing campaigns offered by the sample brands are proven effective for enhancing BRQ. By applying a measure for interpersonal relationships to evaluate customer-brand relationships, we find that a brand must surpass the personification qualification and actively participate in a give-and-take relationship. In examining this process of relationship building, we consider both behavioral and attitudinal brand loyalty. This study also applies curve of forgetting (which was created over 100 years ago) to help explain the effect of SMMA on BRQ. The results suggest that managers should increase their efforts in SMMA, as the surveyed e-loyalty programs have proved able to deliver good value to their customers and maintain long-term customer-brand relationships.

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