The effect of online interaction on brand loyalty with brand engagement and brand trust as mediating variables

Abstract

The exponential growth of the banking industry in Indonesia presents competition as a challenge in how in maintaining customer loyalty. This research aims to determine online interaction propensity on brand loyalty mediated by brand engagement and brand trust. The proposed model is put to the test using data from an online poll of teenage customers. The panel was identified and developed using a snowball convenience sampling technique. This study used the Structural Equation Modelling (SEM) research method, usually used in causal models. This research involved 322 respondents who have participated in Indonesia runner online communities organized by banking industry players. According to the research, online interaction proclivity affected brand engagement and loyalty but has no effect on brand trust. Additionally, brand engagement has effects on brand trust and brand loyalty.