The Effect of Customer Experience, Customer Satisfaction, and Customer Loyalty on Brand Power and Willingness to Pay a Price Premium
DOI:
https://doi.org/10.35877/454RI.qems1639Keywords:
Customer Experience, Customer Satisfaction, Customer Loyalty, Brand Power, Willingness to Pay a Price PremiumAbstract
Products have a special value for customers and brand owners, and becoming a favorite is the aim of many brands. Therefore, this research used a causal quantitative design with a deductive approach to determine the influence of customer experience, satisfaction, and loyalty on brand power and willingness to pay a price premium. The data were obtained from primary sources via a questionnaire, while the population and unit of analysis were determined using the non-probability sampling technique with the criteria of Apple product customers aged at least 17 years old in Indonesia. A total of 280 respondents were achieved from August to December 2021 using the purposive sampling technique. The data were analyzed using SPSS 26 software (factor analysis) and Lisrel 10.2 with SEM (Structural Equation Modeling). Subsequently, the results indicated a positive influence of customer experience, satisfaction, and loyalty on brand power and willingness to pay a price premium. The research also suggested that maintaining and improving product quality, alongside continuous innovation, strengthened customer loyalty and brand power as well as increased their willingness to pay a price premium.
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Hayduk, Leslie A., & Littvay, Levente. (2012). Should Researchers Use Single Indicators, Best Indicators, or Multiple Indicators in Structural Equation Models? BMC Medical Research Methodology, 12, 1–17. https://doi.org/10.1186/1471-2288-12-159
He, Junnan, & Calder, Bobby J. (2020). The Experimental Evaluation of Brand Strength and Brand Value. Journal of Business Research, 115, 194–202. https://doi.org/10.1016/j.jbusres.2020.04.035
Horváth, Csilla, & van Birgelen, Marcel. (2015). The Role of Brands in the Behavior and Purchase Decisions of Compulsive Versus Noncompulsive Buyers. European Journal of Marketing, 49, 1–21. https://doi.org/10.1108/EJM-10-2012-0627
Huaman-Ramirez, Richard, & Merunka, Dwight. (2019). Brand Experience Effects on Brand Attachment: The Role of Brand Trust, Age, and Income. European Business Review, 31(5), 610–645. https://doi.org/10.1108/EBR-02-2017-0039
Hult, G. Tomas M., Sharma, Pratyush Nidhi, Morgeson, Forrest V., & Zhang, Yufei. (2019). Antecedents and Consequences of Customer Satisfaction: Do They Differ Across Online and Offline Purchases? Journal of Retailing, 95(1), 10–23. https://doi.org/10.1016/j.jretai.2018.10.003
Hung, Shiu Wan, Cheng, Min Jhih, & Chiu, Pei Chun. (2018). Do Antecedents of Trust and Satisfaction Promote Consumer Loyalty in Physical and Virtual Stores? A Multi-channel View. Service Business. https://doi.org/10.1007/s11628-018-0364-y
Iglesias, Oriol, Markovic, Stefan, & Rialp, Josep. (2018). How Does Sensory Brand Experience Influence Brand Equity? Considering the Roles of Customer Satisfaction, Customer Affective Commitment, and Employee Empathy. Journal of Business Research, 1–12. https://doi.org/10.1016/j.jbusres.2018.05.043
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Karani, Laila Maisya, Syah, Tantri Yanuar Rahmat, & Anindita, Rina. (2019). Influence of Service Quality and Customer Satisfaction on Customer Loyalty in Restaurants of the Tangerang Area. Russian Journal of Agricultural and Socio-Economic Sciences, 92(8), 142–147. https://doi.org/10.18551/rjoas.2019-08.15
Kataria, Sonia, & Saini, Vinod. (2019). The Mediating Impact of Customer Satisfaction in Relation of Brand Equity and Brand Loyalty: An Empirical Synthesis and Re-examination. South Asian Journal of Business Studies, 9(1), 62–87. https://doi.org/10.1108/SAJBS-03-2019-0046
Keller, Kevin Lane. (2013). Strategic Brand Management: Building, Measuring, and Managing Brand Equity (4th ed.). New Jersey: Pearson Education, Inc.
Keshavarz, Yousef, & Jamshidi, Dariyoush. (2018). Service Quality Evaluation and the Mediating Role of Perceived Value and Customer Satisfaction in Customer Loyalty. International Journal of Tourism Cities, 4(2), 220–244. https://doi.org/10.1108/IJTC-09-2017-0044
Khan, Imran, & Fatma, Mobin. (2017). Antecedents and Outcomes of Brand Experience: An Empirical Study. Journal of Brand Management, 24(5), 439–452. https://doi.org/10.1057/s41262-017-0040-x
Khan, Imran, Garg, Ruchi Jain, & Rahman, Zillur. (2015). Customer Service Experience in Hotel Operations: An Empirical Analysis. Procedia - Social and Behavioral Sciences, 189, 266–274. https://doi.org/10.1016/j.sbspro.2015.03.222
Klaus, Philipp, & Maklan, Stan. (2013). Towards a Better Measure of Customer Experience. International Journal of Market Research, 55(2), 227–246. https://doi.org/10.2501/IJMR-2013-021
Kulsum, Umie, & Syah, Tantri Yanuar Rahmat. (2017). The Effect of Service Quality on The Patient Satisfaction. International Journal of Businsess and Management Invention, 6(3), 41–50. https://doi.org/10.21884/ijmter.2018.5167.hztsj
Kumar, V., Pozza, Ilaria Dalla, & Ganesh, Jaishankar. (2013). Revisiting the Satisfaction-Loyalty Relationship: Empirical Generalizations and Directions for Future Research. Journal of Retailing, 1–17. https://doi.org/10.1016/j.jretai.2013.02.001
Legendre, Tiffany S., Cartier, Elizabeth A., & Warnick, Rodney B. (2019). The Impact of Brand Experience on the Memory Formation. Marketing Intelligence and Planning, 38(1), 15–31. https://doi.org/10.1108/MIP-02-2019-0109
Lemke, Fred, Clark, Moira, & Wilson, Hugh. (2011). Customer Experience Quality: An Exploration in Business and Consumer Contexts Using Repertory Grid Technique. Journal of the Academy of Marketing Science, 39(6), 846–869. https://doi.org/10.1007/s11747-010-0219-0
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2023-03-17
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Franky, F., & Yanuar Rahmat Syah, T. (2023). The Effect of Customer Experience, Customer Satisfaction, and Customer Loyalty on Brand Power and Willingness to Pay a Price Premium. Quantitative Economics and Management Studies, 4(3), 437–452. https://doi.org/10.35877/454RI.qems1639
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