Determinants of the Malaysian Cars Brand Loyalty: Mediating Effect of Brand Satisfaction

Abstract

The objective of this study is to investigate the associations among brand price, brand advertisement, brand image, brand trust and brand loyalty of the Malaysian car. In addition, the objective of this study is to determine the mediating effect of brand satisfaction on those associations. Questionnaire is used to collect data. 319 usable responses were received from respondents in the Northern Region of Malaysia (Kedah, Perlis and Penang). Partial Least Squares Structural Equation Modeling (PLS-SEM) is employed in the data analysis. The findings reveal significant associations among brand advertisement, brand image, brand trust and brand loyalty. However, this study does not find any significant associations among brand price and brand loyalty. This study observes that brand satisfaction mediates the effects of brand price, brand image, brand trust toward brand loyalty. However, brand satisfaction does not mediate the associations between brand advertisement and brand loyalty. The study conducted for the locally operating car manufacturers this is why the findings are not general for other car manufacturers and certain international brands. The research contributes in the research work available for automobile market and is significant for automobile manufacturing firms, automobile sellers, consumers and government in emerging economies, like Malaysia, for market expansion strategic plans. This research revealed that loyalty toward the locally operating Malaysian car brands based on various determinants, with some directly attributed to brand satisfaction. The significance of this study can be seen in the incorporation of brand satisfaction as the mediating variable to explain the associations among brand price, brand image, brand trust and brand loyalty.