Factors affecting the customer based retailer brand equity, brand loyalty and the mediating effect of word of mouth - The case of Circle K-a convenience-store chain in Ho Chi Minh city

Abstract

The main purpose of this study is to investigate the determinants of consumer-based retailer brand equity and from then explore the impact of Customer based Brand Equity (CBBE) on Brand Loyalty, as well as mediating the role of Word of Mouth communication in the retailer industry. Therefore, this research needs to determine how customers evaluate a retailer based on factors such as Environment, Convenience, Employees, Product Quality, Product Value and Private Brands. Then analyzing these effects on brand loyalty and the influence of the mediator Word of Mouth. Following that, a measurement scale was created, and all of the items for nine components performed using a 5-point-Likert scale, including six independent variables and three dependent variables, were taken from prior research with a high H index. The study employs selective sampling in the data gathering method, concentrating solely on young adults between the ages of 18 and 44 who live in Ho Chi Minh City and used to be Circle K’s customers. Thus, the research undertakes Quantitative Method, and 347 valid answers are gathered over the period of 8 weeks of online questionnaires due to Covid19 pandemic. The hypotheses and conceptual model were estimated using Partial Least Squared – Structural Equation Modelling (PLS SEM) approach. Finally, the findings show that, with the exception of Hypothesis 2 and Hypothesis 3, all remaining hypotheses are supported. To be specific, factors Environment, Product Quality, Product Value and Private Brands have been shown to have a positive relationship with Customer-Based Brand Equity. Besides, the relationships between Customer-Based Brand Equity to Word of Mouth and Brand Loyalty are also significant, as well as the association between Word of Mouth and Brand Loyalty. In particular, there is a strongest impact of Customer-Based Brand Equity towards Word of Mouth intention, whereas Word of Mouth plays a key function as a partial mediating factor, having a considerable effect on the relationship between Customer-Based Brand Equity towards Brand Loyalty.