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The Mechanism of Brand Communities on Costumers’ Brand Loyalty

Author: ShengHuiMin
Tutor: YanJun
School: Huazhong University of Science and Technology
Course: Business management
Keywords: Brand community Brand attachment Brand loyalty
CLC: F224
Type: Master's thesis
Year: 2010
Downloads: 119
Quote: 0
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Abstract


With the development of economic globalization, the products which own a brand are gradually replacing the products which don’t have their own brand; this phenomenon indicates the winning brand’s era is coming. At present,the competition between companies is becoming more and more fierce with the product kind becomes much more than before. This phenomenon results fewer and fewer costumers keep their faiths with a regular brand and the breeding of costumer’s loyalty becomes an essential problem which the company must solve. Relationship marketing now has already became a popular means for companies to breed their customers’loyalty and brand community is considered to be a good new methods by marketing scholars and business to carry out relationship marketing. Generally speaking, the scholars who study the brand communities all believe that the brand community has a positive significant influence on brand loyalty; this conclusion brings about a new way for companies to breed their costumers’loyalty. However, the research of brand communities also exist the problem on variable refinement and depth development. The customers in a brand community can communicate and exchange better with the other customers who use the same brand and can also communicate and exchange better with the enterprise and other people who is related with the brand. This will result to more customers’loyalty for the company. Under the research of consumer’s intrinsic motivations to participate into brand communities ,Wang Xinxiang and Due Habit pose that the costumers participate into brand communities basing on five motivations which are social motivation,recreation and entertainment motivation,information motivation,influence motivation and economic interest motivation. Because of the above motivations, the costumers join the brand communities can get much value. There are scholars researching the costumers’perceived value’s influence on the relationship between costumers and the brand communities ,but there are no scholars who try to research the direct influence of costumers’perceived value of brand communities on brand loyalty and the indirect influence of costumers’perceived value of brand communities on brand loyalty through some brand relationship variable. So this article will research the direct influence of costumers’perceived value of brand communities on brand loyalty and the indirect influence of costumers’perceived value of brand communities on brand loyalty through brand attachment. And the costumers’brand attachment will be separated into two dimensions. This article will confirm the brand community’s effect on brand loyalty and reveal the definite mechanism of brand community on brand loyalty. The research result will offer suggestions and methods for companies on how to carry out relationship marketing and breed their costumers’loyalty.The full text has been separated into six chapters. The first chapter demonstrates the significance and background of the research. The second chapter cardings and reviews the theoretical and empirical researches which relate with brand community, brand attachment, customer perceived value and customer loyalty. The third chapter put forward the article’s theoretical model and assumptions. The forth chapter states the detailed study design for this article. And the fifth chapter test and verify this article’s theoretical model and assumptions based on descriptive statistics, correlation and regression analysis of dates. The last chapter discusses this article’s conclusions and outlook.Based on the data analysis and the comparisons of the results, this article obtained three conclusions: (1) The brand community’s entertainment and social value, information value, financial value and image value all have a significant influence on brand attachment. Concretely speaking, the brand community’s entertainment and social value, information value, financial value all have a significant influence on brand attachment’s dimension-the degree of costumers’cognition and emotional investment on company’s brand; the brand community’s image value has a significant influence on brand attachment’s another dimension-the consistency between costumer and brand. (2)The brand community’s entertainment and social value, information value and financial value all have a significant influence on brand loyalty except the image value. (3)Brand attachment’dimension- the degree of costumers’cognition and emotional investment on company’s brand has a significant medium influence on the mechanism of brand community’s entertainment and social value, information value and financial value on brand loyalty.

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