Journal of Economics and Management: Hwai-Shuh Shieh Wei-Hsun Lai
Journal of Economics and Management: Hwai-Shuh Shieh Wei-Hsun Lai
Abstract
Aim/purpose – The study aims to understand the contribution of the experiential
events how to influence the brand loyalty while the consumer synchronized with brand
under the brand resonance.
Design/methodology/approach – The study combines Schmitt’s five distinct ex-
perience ‘modules’ with the SEM method to explore the relationship among these five
experience dimensions and brand experience, and applies the Keller’s CBBE model to
explore whether the experiential events that consumer participated could help the com-
pany build brand resonance through the brand experience delivering in the event. The
study applies convenient sampling method and collects data through online questionnaire
platform from April 12 to April 26, 2015. Deleting invalid or incomplete questionnaires,
the study gets 204 valid samples from the total 229 respondents.
Findings – The findings indicate that these five strategic experiences dimensions
are positively related to the brand experience; the positive relationships among brand
experience, brand resonance, and brand loyalty also exist.
Research implications/limitations – The results of the study have some strategic
implications for marketing practice. The findings point out that event marketing could be
considered as an effective tool to enlarge customer base and to build brand loyalty. In the
real world, the more event marketing adopts; the stronger brand experience is and the
higher the effect on brand loyalty will be. Nevertheless, the study cannot provide spe-
cific constructive suggestion: how to design events to stimulate and create a strong,
memorable brand experience.
58 Hwai-Shuh Shieh, Wei-Hsun Lai
1. Introduction
2. Literature review
2 . Bran
2.3 nd resson
nan
nce
Brrannd reso
r onan nce is a conc cep pt ppropposeed tot char
c ractteriize braand rellatioonsshipps
aandd referss to
o thhe natu
n ure of thee co onsuum mer-bbrannd relaatioonshhip annd, mo more speecififi-
c ly, the
call t exttentt to whhichh a per
p rson n feels thaat hee orr shhe reso
r onattes or con c nneccts wit
w th
f s in
a brrannd oor feel w it [Keelleer 2001
n syyncc with 2 1]. The mark m ketiingg coomm munnicaatioon
e vironnment haas alter
env a red ex xtrem melly ssincce the
t Technnoloogyy an nd IInteerneet cchan ngeed
t waay ppeo
the oplee in
nteraactss annd com mmmuniicattes. Ev vennt and
a exp perience is sseen aas
m re mas
mor m ss med
m dia typpes off coomm munnicaatioons.. Kelle
K er [200 [ 09] prropooses thhe cuss-
t mer--bassed braand equuityy (C
tom CBB BE)) mmodeel illlusstratted in Figguree 1 andd viiewws brrannd
b ldinng aas an
buil a aasceendiingg serriess off steeps.. Thhe CBB
C BE moodeel em mphhasizes thhe dual
d l-
i of braandss: tthe rattionnal rouute to bbraand buuildiing is thee leeft-hhannd side
ity s e off thhe
p amiid, wh
pyra hereeas thee em mottionnal rouute is thee rightt-haand sid de. Thhe crea
c ation n oof
s nificcannt brrannd equi
sign e ity req quirees reac
r chinng thet top p orr piinnaaclee off thhe bran
b nd reso
r o-
n nce pyr
nan p rammid, wh hichh occcurrs oonly
y if the rigght bui
b ildinng bloc
b ckss aree puut in nto plaace..
A thhe step
All s ps invo
i olvee acccom mplishhingg ceertaain obj
o ectiivess with
w cusstom merrs- bot
b th
e stinng aand poten
exis ntiall. Inn sh
hortt, bran
b nd resor onanncee strressses thee immpoortan ncee off unn-
d stanndinng the
ders t cog gnitivee annd aaffeectiive connseqqueencee off brrand d reelattion
nshiips-how w
c nsum
con merrs thhinkk, feel
f l, annd act-to guuide ressearrch h annd plan
p nnin ng ffor maarkeeterrs. IIt
a o em
also mphhasizes a hierarrch hy in bran
b nd devveloopm mentt annd thee im mpoortan ncee off see-
q encee steeps in braand buiildiing..
que
F ure 1. C
Figu Cusstom
mer--Bassed Braand Equ
uityy (CB
BBE
E) mod
m del ppyraamid
62 Hwai-Shuh Shieh, Wei-Hsun Lai
The past studies pointed out that brand experience plays an importance role
of brand equity. Furthermore, brand experiences are also actual sensations, feel-
ings, cognitions, and behavioral responses [e.g. Farquhar 1989; Aaker 1996;
Erdem & Swait 1998; Berry 2000; Yoo, Donthu & Lee 2000; Yoo & Donthu
2001; Aaker 2009; Brakus, Schmitt & Zarantonello 2009; Keller, Parameswaran
& Jacob 2011]. Following the above statement, the study proposes a hypothesis:
Hypothesis 6: Brand experience will have a positive impact on brand reso-
nance.
He identifies the following five components of brand equity: (1) brand aware-
ness; (2) brand association; (3) perceived quality; (4) brand loyalty; (5) other
proprietary assets such as patents, trademarks and channel relationships. Keller
[2003] defines brand equity as the differential effect that brand knowledge has
on consumer response to the marketing of that brand, and further articulates the
concept of brand equity and identified several components that are composed of
customer based brand equity. Brand resonance could predict repurchase inten-
tion, future earnings and firm value in various markets [Aaker & Jacobson
2001]. Wang et al. [2008] stated that a strong customer brand relationship can
make customers more receptive to new products or extensions under the same
brand. Marketing communications can tell or show consumers how and why
a product is used, by what kind of person and where and when. Consumers can
learn about who makes the product and what the company and brand stand for;
and get an incentive or reward for trial or usage. Moreover, marketing commu-
nications allow companies to link their brands to other people, places, events,
brands, experience, feelings and things. They can contribute to brand equity − by
establishing the brand in memory and creating a brand image − as well as drive
sales and even affect shareholder value [Luo & Donthu 2006]. Based on the
above statement, the study proposes a hypothesis:
Hypothesis 7: Brand resonance will have a positive impact on brand loyalty.
3. Research methods
The study explores the relationships among brand experience, brand reso-
nance, brand equity in event marketing and the internal factors of strategic ex-
periences modules proposed by Schmitt [1999]; then, we develop the research
framework (Figure 2). According to Brakus, Schmitt and Zarantonello [2009],
definition, brand experiences are actual sensations, feelings, cognitions, and
behavioral responses. Then the study applies the Keller’s CBBE model to ex-
plore whether the experiential events that consumer participated could help the
company build brand resonance through the brand experience delivering in the
event. The study aims to understand the contribution of the experiential events
how to influence the brand loyalty while the consumer synchronized with brand
under the brand resonance.
64 Hwai-Shuh Shieh, Wei-Hsun Lai
Sense
H1
Feel
H2
Think H3
H6 H7
Brand Brand
Experience Resonance Brand
H4 Loyalty
Act
H5
Relate
3.3. Sampling
The study applies convenient sampling method and collects data through
online questionnaire platform from April 12 to April 26, 2015. Deleting invalid
or incomplete questionnaires, the study gets 204 valid samples from the total 229
respondents. A demographic profile of questionnaire consists of gender, age,
education, occupation, and monthly income (Table 2).
66 Hwai-Shuh Shieh, Wei-Hsun Lai
The study uses confirmatory factor analysis to determine scale validity and
reliability of the eight constructs. Some items show poor factor loading value in
R2, and are discarded while factor loading do not be greater than 0.5. After purg-
ing, the factors and scales contained the items shown in the Table 3. Other indi-
cators are shown the as follows: RMSEA, 0.078; CFI, 0.852; and the values for
Cronbach’s α (> 0.5) were satisfied with the standard proposed by Nunnally
[1978]. Then the study used Harmon’s one factor test to examine the common
method bias [Podsakoff & Organ 1986]. The unrotated principal components
factor analysis indicted that a single factor did not account for the majority of
covariance among variables (< 50%).
The relationships among brand experience, brand resonance… 67
The study uses the robust maximum likelihood method to test SEM. The re-
sults confirm that the model shows an acceptable fit with the data structure (Fig-
ure 3). All hypotheses cannot be rejected (Table 5).
F ure 3. E
Figu Estiimatted resuults of SEM
M mod
m del
5 Con
5. C nclusiions
5 . Rese
5.1 R earrch contrribu
ution
Faacinng the
t sev vere mark
m ket com mppetittionn annd the
t diffficuulty y off thhe dev
d elop pinng
nnew
w cuustoomeers, maanaagerrs have
h e too addoptt a lot of innnovaativve mar
m rketting g strrateegiees
a d tryy to atttracct more
and m e cuusto
omeers, to catcch thei
t ir eyess annd too arrouuse thei
t ir ppurcchass-
i intenttion
ing n. Thhe onee off moost pop
pular stra
s ateggies is tto enh
e ancce ppurcchassingg in ntenn-
70 Hwai-Shuh Shieh, Wei-Hsun Lai
tions of existing customers through building brand relationships. The past stud-
ies examined brand experience dimensions and investigated the relation between
brand resonance and brand loyalty. Brand experience is composed of sensory,
affective, behavioral and intellectual dimensions [Brakus, Schmitt & Zarantonello
2009]. Therefore, many papers employed a model to explore the effect of each
dimensions of brand experience, and the relationship between brand resonance and
brand loyalty. However, most studies focused on brand experience affecting cus-
tomer satisfaction and loyalty, and few to examine the effect of each brand experi-
ence dimensions on brand relationship. The study fills this gap and has two main
contributions: one is how event marketing works from a branding perspective, the
other is how it benefits the development of brand loyalty.
The results of the study have some strategic implications for marketing
practice. The findings point out that event marketing could be considered as an
effective tool to enlarge customer base and to build brand loyalty.
In the study HTC tried to deliver a new product message through event market-
ing and the brand endorser − Mayday, a famous Taiwanese rock band, instead of
a great deal of traditional advertising. The findings showed a significantly positive
performance. In the real world, the more event marketing adopts; the stronger brand
experience is and the higher the effect on brand loyalty will be.
This study has clarified relationships among brand experience, brand reso-
nance and brand loyalty in event marketing. Besides, it also underlined the im-
portance of five dimensions of brand experience. Nevertheless, it cannot provide
specific constructive suggestion: how to design events to stimulate and create
a strong, memorable brand experience.
The studies that examine the impact of event characteristics on consumers
are few. Future study could adopt a narrow viewpoint and focus on some type of
event to explore the further relationships among the variables the study used.
Besides, researcher also could take into account other promotional tools to in-
vestigate the relationship from a broader perspective.
The relationships among brand experience, brand resonance… 71
References
Aaker D.A. (1991): Managing brand equity: Capitalizing on the value of a brand name.
The Free Press, New York.
Aaker D.A. (1996): Measuring brand equity across products and markets. “California
Management Review”, Vol. 38(3), pp. 102-120.
Aaker D.A. (2009): Managing brand equity. Simon and Schuster, New York.
Aaker D.A., Jacobson R. (2001): The value relevance of brand attitude in high-
technology markets. “Journal of Marketing Research”, Vol. 38(4), pp. 485-493,
http://dx.doi.org/10.1509/jmkr.38.4.485.18905.
Aziz N.A., Yasin N.M. (2010): Analyzing the brand equity and resonance of banking
services: Malaysian consumer perspective. “International Journal of Marketing
Studies”, Vol. 2(2), pp. 180-189.
Bello D.C., Holbrook M.B. (1995): Does an absence of brand equity generalize across
product classes? “Journal of Business Research”, Vol. 34, pp. 125-131.
Berry L.L. (2000): Cultivating service brand equity. “Journal of the Academy
of Marketing Science”, Vol. 28(1), pp. 128-137.
Brakus J.J., Schmitt B.H., Zarantonello L. (2009): Brand experience: What is it? How is
it measured? Does it affect loyalty? “Journal of Marketing”, Vol. 73(3), pp. 52-68,
http://dx.doi.org/10.1509/jmkg.73.3.52.
Brodie R.J., Glynn M.S., Durme J. van (2002): Towards a theory of marketplace equity.
“Marketing Theory”, Vol. 2(1), pp. 5-28.
Carpenter J.M. (2008): Consumer shopping value, and loyalty in discount retailing.
“Journal of Retailing and Consumer Services”, Vol. 15(5), pp. 358-363,
http://dx.doi.org/10.1016/j.jretconser.2007.08.003.
Darley W.K., Blankson C., Luethge D.J. (2010): Toward an integrated framework for
online consumer behavior and decision making process: A review. “Psychology
& Marketing”, Vol. 27(2), pp. 94-116, http://dx.doi.org/10.1002/mar.20322.
Davis R., Buchanan-Oliver M., Brodie R.J. (2000): Retail service branding in electronic –
commerce environments. “Journal of Service Research”, Vol. 3(3), pp. 178-186.
Donovan R.J., Rossiter J.R., Marcoolyn G., Nesdale A. (1994): Store atmosphere and
purchasing behavior. “Journal of Retailing”, Vol. 70(3), pp. 283-294, https://doi.
org/10.1016/0022-4359(94)90037-X.
Duncan T., Moriarty S.E. (1998): A communication-based marketing model for
marketing relationships. “Journal of Marketing”, Vol. 62(2), pp. 1-13, https://doi.
org/10.2307/1252157.
Erdem T., Swait J. (1998): Brand equity as a signaling phenomenon. “Journal
of Consumer Psychology”, Vol. 7(2), pp. 131-157.
Farquhar P.H. (1989): Managing brand equity. “Marketing Research”, Vol. 1(3), pp. 65-100.
Fornell C., Larcker D.F. (1981): Evaluating structural equation models with
unobservable variables and measurement error. “Journal of Marketing Research”,
Vol. 18(1), pp. 39-50, https://doi.org/10.2307/3151312.
72 Hwai-Shuh Shieh, Wei-Hsun Lai
Gwinner K. (1997): A model of image creation and image transfer in event sponsorship.
“International Marketing Review”, Vol. 14(2/3), pp. 145-158, https://dx.doi.org/
10.1108/02651339710170221.
Heinonen K., Strandvik T., Mickelsson K.J., Edvardsson B., Sundström E., Andersson P.
(2010): A customer dominant logic of service. “Journal of Service Management”,
Vol. 21(4), pp. 531-548.
Holbrook M.B., Hirschman E.C. (1982): The experiential aspects of consumption:
Consumer fantasies, feelings, and fun. “Journal of Consumer Research”, Vol. 9(2),
pp. 132-140, https://doi.org/10.1086/208906.
Huang C.C., Yen S.W., Liu C.Y., Chang T.P. (2014): The relationship among brand equity,
customer satisfaction, and brand resonance to repurchase intention of cultural and
creative industries in Taiwan. “International Journal of Organizational Innovation”,
Vol. 6(3), pp. 106-120, http://asiair.asia.edu.tw/ir/handle/310904400/79878.
Jang S.S., Namkung Y. (2009): Perceived quality, emotions, and behavioral intentions:
Application of an extended Mehrabian-Russell model to restaurants. “Journal
of Business Research”, Vol. 62(4), pp. 451-460, http://dx.doi.org/10.1016/j.jbusres.
2008.01.038.
Kamakura W.A., Russell G.J. (1993): Measuring brand value with scanner data.
“International Journal of Research in Marketing”, Vol. 10, pp. 9-22.
Kapferer E. (1995): Strategic brand management. New approaches to creating and
evaluating brand equity. Simon & Schuster, London.
Keller K.L. (1993): Conceptualizing, measuring, managing customer-based brand equity.
“Journal of Marketing”, Vol. 57(1), pp. 1-22, http://dx.doi.org/10.2307/1252054.
Keller K.L. (2001): Building customer-based brandequity. “Marketing Management”,
Vol. 10(2), pp. 14-19.
Keller K.L. (2003): Brand synthesis: The multidimensionality of brand knowledge. “Journal
of Consumer Research”, Vol. 29(4), pp. 595-600, https://doi.org/10.1086/346254.
Keller K.L. (2009): Building strong brands in a modern marketing communications
environment. “Journal of Marketing Communications”, Vol. 15(2-3), pp. 139-155,
http://dx.doi.org/10.1080/13527260902757530
Keller K.L., Parameswaran M.G., Jacob I. (2011): Strategic brand management:
Building, measuring, and managing brand equity. Pearson Education India, Delhi.
Kerin R.A., Jain A., Howard D.J. (1992): Store shopping experience and consumer
price-quality-value perceptions. “Journal of Retailing”, Vol. 68(4), pp. 376-397.
Luo X., Donthu N. (2006): Marketing’s credibility: A longitudinal investigation
of marketing communication productivity and shareholders value. “Journal of
Marketing”, Vol. 70(4), pp. 70-91, http://dx.doi.org/10.1509/jmkg.70.4.70.
Mattila A.S., Wirtz J. (2001): Congruency of scent and music as a driver of in-store
evaluations and behaviour. “Journal of Retailing”, Vol. 77(2), pp. 273-289,
http://dx.doi.org/10.1016/S0022-4359(01)00042-2.
Menon S., Kahn B. (2002): Cross-category effects of induced arousal and pleasure on
the internet shopping experience. “Journal of Retailing”, Vol. 78(1), pp. 31-40,
http://dx.doi.org/10.1016/S0022-4359(01)00064-1.
The relationships among brand experience, brand resonance… 73
Michon R., Chebat J.C., Turley L.W. (2005): Mall atmospheres: The interaction effects
of the mall environment on shopping behaviour. “Journal of Business Research”,
Vol. 58(5), pp. 576-583, http://dx.doi.org/10.1016/j.jbusres.2003.07.004.
Nunnally J.C. (1978): Psychometric theory. McGraw-Hill, New York.
Oliver R.L. (1999): Whence consumer loyalty? “Journal of Marketing”, Vol. 63(4),
pp. 33-44, http://dx.doi.org/10.2307/1252099.
Pine B.J., Gilmore J.H. (1998): Welcome to the experience economy. “Harvard Business
Review”, Vol. 76, pp. 97-105.
Podsakoff P.M., Organ D.W. (1986): Self-reports in organizational research: Problems
and propects. “Journal of Management”, Vol. 12(4), pp. 531-544, https://doi.org/10.
1177/014920638601200408.
Schmitt B. (1999): Experiential marketing. “Journal of Marketing Management”,
Vol. 15(1-3), pp. 53-67, http://dx.doi.org/10.1362/026725799784870496.
Sherman E., Mathur A., Smith R.B. (1997): Store environment and consumer purchase
behaviour: Mediating role of consumer emotions. “Psychology and Marketing”,
Vol. 14(4), pp. 361-378, http://dx.doi.org/10.1002/(SICI)1520-6793.
Simon C.J., Sullivan M.W. (1993): The measurement and determinants of brand equity:
A financial approach. “Marketing Science”, Vol. 12, pp. 28-52.
Swinyard W.R. (1993): The effects of mood, involvement, and quality of store experience
on shopping intentions. “Journal of Consumer Research”, Vol. 20(2), pp. 271-280,
https://doi.org/10.1086/209348.
Turley L.W., Milliman R.E. (2000): Atmospheric effects on shopping behaviour:
A review of the experimental evidence. “Journal of Business Research”, Vol. 49(2),
pp. 193-211, http://dx.doi.org/10.1016/S0148-2963(99)00010-7.
Wang H., Wei Y., Yu C. (2008): Global brand equity model: Combining customer-based
with product-market outcome approaches. “Journal of Product & Brand Management”,
Vol. 17(5), pp. 305-316, http://dx.doi.org/10.1108/10610420810896068.
Whelan S., Wohlfeil M. (2006): Communicating brands through engagement with ‘lived’
experiences. “Journal of Brand Management”, Vol. 13(4/5), pp. 313-329,
http://dx.doi.org/10.1057/palgrave.bm.2540274.
Wood E.H. (2009): Evaluating event marketing: Experience or outcome? “Journal
of Promotion Management”, Vol. 15(1-2), pp. 247-268, http://dx.doi.org/10.1080/
10496490902892580.
Wood E.H., Masterman G. (2007): Event marketing: Experience and exploitation.
In: Extraordinary Experiences Conference: Managing the consumer experience in
hospitality, leisure, sport, tourism, retail and events. Bournemouth University, 3rd
& 4th September, Poole and Bournemouth, Dorset.
Yoo B., Donthu N. (2001): Developing and validating multidimensional consumer-based
brand equity scale. “Journal of Business Research”, Vol. 52(1), pp. 1-14.
Yoo B., Donthu N., Lee S. (2000): An examination of selected marketing mix elements and
brand equity. “Journal of the Academy of Marketing Science”, Vol. 28(2), pp. 195-211.