Brand and customer management mindsets creating brand relationships and equity in young adults

Abstract

Purpose: Players in the highly competitive smartphone industry can use either brand management mindset (BMM) or customer management mindset (CMM) to build consumer-brand relationships and ultimate customer-based brand equity (CBBE) in different market segments. This research integrates three models to examine pathways by which CBBE sources (BMM) and consumption values (CMM) drive three consumer-brand relationships (brand satisfaction, love and loyalty) to determine brand equity.

Design/methodology/approach: Descriptive research design was used to study a global smartphone brand by surveying young adult consumers. Quantitative data were collected from a non-probability sample of 651 respondents. The questionnaire used previously validated measurement scales. Structural equation modelling was used to analyse data.

Findings/results: Results revealed that symbolic value, monetary value (CMM), perceived quality, brand image and loyalty (BMM) directly impacted CBBE. Indirectly, brand awareness, image, perceived quality, monetary and functional values impacted brand satisfaction, which drove brand love. Brand love influenced brand loyalty, which had a strong impact on CBBE.

Practical implications: Marketers can use the integrated model to gauge outcomes of their BMM and CMM strategies. The model can be adopted by other global brands entering the African market to test how their strategies yield consumer-brand relationships and equity successes.

Originality/value: The study enriches consumer behaviour, product and brand management literature by examining the predictive powers of BMM and CMM. It integrates three models to show how executing two strategy mindsets can generate consumer-brand relationships and equity for a global brand operating in Africa.