The effects of corporate brand symbolism on consumer satisfaction and loyalty

Abstract

Purpose – The purpose of this paper is to test the effects of corporate brand symbolism on consumer satisfaction and loyalty on a sample of Australian automobile consumers. Design/methodology/approach – Survey research was employed to test the study hypotheses. The regression analysis was used to evaluate the relationships between an independent variable (corporate brand symbolism) and dependent variables (consumer satisfaction and loyalty). Findings – Support was found for all hypotheses formulated in this study. Regression results reveal consistent favourable and significant effects of corporate brand symbolism on both consumer satisfaction and loyalty. Research limitations/implications – Although this paper makes contributions in international marketing, the cross-sectional nature of the data collection method limits the information gained to the single point in time. This research studied the impact of corporate brand symbolism on consumers of one original equipment manufacturers (OEM). Having a larger number of participating car manufacturers/OEMs would have provided a wider insight. However, time and resources limitation did not allow to study a larger sample. In the future, practitioners are recommended to further understand the relationship between self and social aspects of brand symbolism in order to formulate more targeted communication strategies. Practical implications – The findings of this study point to the strategic role of the brand in generating both satisfaction and loyalty. In the light of increasing advertising costs and decreasing consumer loyalty, strengthening corporate brand symbolism makes a lot of economic sense. The findings suggest that managers need to take into account consumer need for identity expression and consider this in their branding strategies. Social implications – Humans are social beings by nature. However, international brand research has paid relatively little attention to how products are used by consumers in everyday life, including their social life. Consumer behaviours increasingly depend on social meanings they imbue brands with beyond products’ functional utility. It is argued the focus of symbolic consumption needs to be broadened and integrated more with social science concepts. Originality/value – This study captures a construct of corporate brand symbolism by including self and social aspects of symbolism. The current study also comprehensively measures consumer loyalty, including cognitive, affective and behavioural types of loyalty.