The effects of brand communities and elements of customer centric model on brand loyalty

Abstract

Building and maintain brand loyalty are one of the most important themes of research for marketers for a very long time. Marketers have used various means to deal with brand loyalty. One of the recent mean is to do this is to create brand fan pages on social networking sites. It feels like social media sites constitute excellent means for fostering relationships with customers all around the world and particularly in Vietnam. Firms may place brand posts on these brand fan pages, and customers may become fans of these brand fan pages. Some researchers claim social media provide a special opportunity for brands to nurture their relationships with customers, while others believe in the contradicting point of view. Still, there is a continuous discuss over the activities of brands and firms in social media sites. Due to the rapid growth of social media and the motivation of brand owners to participate in social media not only international level but also national level like Vietnam, the purpose of the study is to explore whether brand communities based on social media and elements of customer centric model have positive on brand loyalty through brand trust. Toward this goal, I first adapt the model of the effects of brand community by Michel Laroche, Mohammand Reza Habibi, and Marrie-Odila Richard (2012). After that, I modify the model adapted and then I test the network and hypotheses quantitatively by estimating a structural equation model using survey data from a sample of Vietnamese social media website users who are members of different brand communities on the social media website. A survey-based empirical study with 504 respondents was conducted via email. The results of structural equation modeling show that brand communities established on social media sites and elements customer centric model (including customer/product relationship, customer/brand relationship, customer/company relationship, customer/other customers relationship) have positive effects on brand trust, and trust has positive effects of improved relationship in brand community to brand loyalty. The remainder of this study is structured as follows. I conclude with a discussion of managerial significance, theoretical and practical implications, and limitations. Keywords: social media, brand community, brand trust, brand loyalty, customer centric model.