An investigation into brand value dimensionality and its effects on loyalty: evidence from the high-tech brandscape in Saudi Arabia

Abstract

This thesis investigates the dimensionality of brand value from the consumer perspective and tests how value dimensions relate to loyalty at the brand level. Firstly, a novel conceptualisation of perceived brand value is offered based on consumption values theory. Five dimensions are deployed to constitute the brand value scale; functional value, economic value, social value, emotional value and epistemic value. These dimensions are then tested in a holistic model to assess i) the reliability and validity of the scale, ii) the impact of brand leadership and corporate image on relative value dimensions, and iii) the segregated influence on value dimensions on repurchase intentions and positive word-of-mouth. Qualitative and quantitative methods are used to collect data from the high-technology market segment in Saudi Arabia owing to the country’s strong economic situation along with the accelerated penetration of high-tech brands into the Saudi market. First, four rounds of focus group discussions with university students conducted to confirm and enhance existing scales of brand value dimensions and developing new scale for the epistemic value construct at brand level. A self-administrated questionnaire was developed from both literature and focus groups and content and face validated by academics and subject matter experts. Then, 1020 questionnaires were distributed to several college-level schools in the city of Jeddah, 771 were returned, and 510 completed responses were used for final analysis. Exploratory and confirmatory factor analyses used to validate the dimensionality and reliability of the integrated scale of brand value. Structural equation modelling techniques applied to test the conceptual model and research hypotheses. Twenty-one items are retained to represent five dimensions of brand value scale and fourteen out of sixteen hypotheses are accepted. Thus, findings of empirical research confirm theory in that i) consumers perceive value of brands from multiple perspectives, ii) brand associations significantly contribute to value of brands, and iii) value dimensions encourage brand loyalty at dissimilar levels. At academic level, researchers can use the developed scales to study the mutual relationships between other brand associations and various dimensions of brand value. The newly developed measure of epistemic value can also be used to examine the impact of added high-tech features on aspects of consumer behaviour e.g. consumer-brand relationship. At managerial level, brand managers can use the developed scale to assess the strengths and weaknesses of their brands. According to the relevant importance of functional, economic, social, emotional and epistemic values to customers, loyalty programmes and customer relationship management can be tailored to match consumer needs. Finally, market segmentation can adapt value-based strategies to tap into new markets more successfully.