The Relationship between Customer Brand Engagement and Brand Loyalty for Local Car Brands in Malaysia

Abstract

Brand loyalty has become a primary goal for a company in today's business environment due to intense market competition. This paper aims to examine the relationship between customer brand engagement and brand loyalty for local car brands in Malaysia. Brand loyalty is vital for local car manufacturers to ensure that customers remember their brands and will not switch to competing foreign brands. Therefore, companies need to engage with customers, resulting in brand loyalty and helping companies create a loyal customer— nevertheless, research confirming the main contribution of customer brand engagement to brand loyalty is still lacking. This paper has conducted a quantitative survey using online. 279 data were collected from the user of Malaysian local car brands; Proton and Perodua, and the data then were analysed using Smart PLS. The findings of this paper have indicated that customer brand engagement positively influences brand loyalty. Hence, brand loyalty has become an essential factor in sustaining market share, and it is much more cost-effective to retain the existing customer than attracting a new customer.