INFLUENCE OF ONLINE BRAND COMMUNITY ENGAGEMENT ON BRAND TRUST AND BRAND LOYALTY

Abstract

This study examines the effect of online brand community customer engagements on brand loyalty,through various online customer-to-community relationships, and trust. Data was randomly collected from 720 members of an online brand community page using an online questionnaire and analysed with Structural Equations Modelling (SEM). The study found that online brand community activities influenced customer-product relationships, and not customer-brand nor customer-company relationships. None of the customer relationships mediate the link between online brand community and trust. Trust, however partially mediates between customer-product relationships and brand loyalty, as well as between customer-company relationships and brand loyalty. Trust of the online community was confirmed to lead to loyalty. For industry practitioners, these findings support the need to ensure favourable customer/product related activities, experience and word of mouth within the online community. It also demonstrates the possibility of brand extension and brand trust at lower costs. The paper contributes to industrial and academic knowledge of virtual brand community and its effects.