How does brand innovativeness affect brand loyalty?

Abstract

Purpose: This research examines 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 modelling. 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 an hereto overlooked intervening variable, perceived quality.