Relationship between brand innovativeness and customer satisfaction: a moderated mediation model from Generation M perspective

Abstract

Purpose This paper aims to examine the impact of innovativeness on customer satisfaction through mediation of perceived quality and also examines the effect of consumer involvement and communication strategy as moderating variables to validate relationship between innovativeness and perceived quality from the perspective of Generation M. Design/methodology/approach Cluster sampling method is used and data is collected from 451 graduates studying in different universities of Sahiwal division to know their perception regarding mobile phones brands. Structural equation modelling technique is used, and all analyses are performed using SPSS 23.0 and SmartPLS 2.0 to know the findings of the study. Findings This study finds positive significant nexus between innovativeness-satisfaction, innovativeness-perceived quality and perceived quality-customer satisfaction at brand level. This study also finds that perceived quality is a significant mediator between brand innovativeness and customer satisfaction. However, moderating variables do not help to boost the relationship among brand innovativeness and perceived quality to transmit their impact on customer satisfaction. Practical implications This study may help to understand the preferences of different generations. Findings of the study can also benefit the firms in investment decisions, brand management and formulation of innovative strategies for future. Originality/value To the best of the authors’ knowledge, this work is one of the first studies to investigate the integrated model of BI-CS through mediating and moderating variables to know the perception of Generation M regarding smartphone brands in developing economies like Pakistan.