An empirical analysis of brand as symbol, perceived transaction value, perceived acquisition value and customer loyalty using structural equation modeling

Abstract

Today consumers' demands and choices of products or services are constantly changing rapidly in the internet environment of information technology. The markets emphasize quality, service, and customization, which has been changing the consumption patterns in the decision-making process or companies' production patterns. The enterprises are essential to respond the changes of the consumption side and production side in order to achieve sustainable development. Moreover, it is important to focus on the relationship of interaction with consumers. This study was intended to explore the influence of brand as symbol on consumer behavior to understand the relations between brand as symbol, perceived transaction value, perceived acquisition value, message-response involvement, and customer loyalty. The empirical analysis is performed by using Structural Equation Modeling (SEM), including measurement and structural models. The measurement models are examined with Confirmatory Factor Analysis (CFA) to identify the relations between latent variables and observed variables whereas the structural models are used to find out the relations between latent variables. Meanwhile, path analysis is adopted to understand the influence between the variables. A questionnaire survey was carried out on customers of chain beverage stores in the Chiayi area through convenient sampling 400 copies were administered and 387 valid samples were retrieved. The response rate was 97%. The results indicate that brand as symbol has significant positive influence on perceived transaction value, perceived acquisition value, and customer loyalty. This means brand as symbol alone can have an effect on customer loyalty and will not be influenced by the level of message-response involvement. This conclusion can be applied to help brand managers to establish close relations with consumers when performing brand design.