Customer Engagement and Loyalty Issues in Omnichannel Fast-Food Industry
DOI:
https://doi.org/10.33736/ijbs.4313.2021Keywords:
omnichannel, fast-food, customer engagement, channel integration quality, congruity, behavioural loyaltyAbstract
Building on Social Exchange Theory and Congruity Theory, this study aims to examine the relationships between channel integration quality (i.e., channel-service configuration and integrated interaction) and congruity (i.e., self-brand image congruity and value congruity) towards customer engagement; as well as the impacts of customer engagement on customer behavioural loyalty (i.e., repurchase intention and positive WoM). Adopting convenience and snow-ball sampling methods, a total of 151 valid questionnaires were collected and analysed using SPSS 25 and SmartPLS 3.0 software. Congruity aspects play significant roles in influencing customer engagement, while channel integration qualities do not. This result could be attributed to the unique characteristics of the fast-food products and Malaysian fast-food consumers. Importantly, customer engagement influences both transactional (i.e., repurchase intention) and emotional (i.e., intention to spread positive word of mouth) loyalty positively. The findings provide useful insights to both academicians and practitioners to plan for different omnichannel strategy in the effort to increase customer engagement and desired post purchase behaviours.
References
Aaker, J. L. (1996). Brand Personality: Conceptualization, Measurement and Underlying Psychological Mechanisms [Doctoral dissertation, Stanford University]. Standford Libraries. https://doi.org/10.1037/t51177-000
Ackerman, D., & Tellis, G. (2001). Can culture affect prices? A cross-cultural study of shopping and retail prices. Journal of Retailing, 77(1), 57-82. https://doi.org/10.1016/S0022-4359(00)00046-4
Alexander, B., & Cano, M. B. (2019). Futurising the physical store in the omnichannel retail environment. In Exploring Omnichannel Retailing (pp. 197-223). Springer, Cham. https://doi.org/10.1007/978-3-319-98273-1_9
Anderson, E. W. (1998). Customer satisfaction and word of mouth. Journal of Service Research, 1(1), 5-17. https://doi.org/10.1177/109467059800100102
Bang, Y., Lee, D. J., Han, K., Hwang, M., & Ahn, J. H. (2013). Channel capabilities, product characteristics, and impacts of mobile channel introduction. Journal of Management Information Systems, 30(2), 101-125. https://doi.org/10.2753/MIS0742-1222300204
Beerli, A., Meneses, G. D., & Gil, S. M. (2007). Self-congruity and destination choice. Annals of Tourism Research, 34(3), 571-587. https://doi.org/10.1016/j.annals.2007.01.005
Bitner, M. J., Ostrom, A. L., & Meuter, M. L. (2002). Implementing successful self-service technologies. Academy of Management Perspectives, 16(4), 96-108. https://doi.org/10.5465/ame.2002.8951333
Bitter, S., & Grabner-Kräuter, S. (2016). Consequences of customer engagement behavior: when negative Facebook posts have positive effects. Electronic Markets, 26(3), 219-231. https://doi.org/10.1007/s12525-016-0220-7
Blau, P. M. (2017). Exchange and power in social life (2nd ed). London, NY: Routledge https://doi.org/10.4324/9780203792643
Bowden, J. L. H. (2008). The process of customer engagement: A conceptual framework. Journal of Marketing Theory and Practice, 17(1), 63-74. https://doi.org/10.2753/MTP1069-6679170105
Cambra-Fierro, J. J., Melero-Polo, I., & Vázquez-Carrasco, R. (2013). Customer engagement: Innovation in non-technical marketing processes. Innovation: Management, Policy and Practice, 15(3), 326-336. https://doi.org/10.5172/impp.2013.15.3.326
Cheah, J. H., Lim, X. J., Ting, H., Liu, Y., & Quach, S. (2020). Are privacy concerns still relevant? Revisiting consumer behaviour in omnichannel retailing. Journal of Retailing and Consumer Services, 102242. https://doi.org/10.1016/j.jretconser.2020.102242
Cheung, C. M. K., Shen, X., Lee, Z. W. Y., & Chan, T. K. H. (2015). Promoting sales of online games through customer engagement. Electronic Commerce Research and Applications, 14(4), 241-250. https://doi.org/10.1016/j.elerap.2015.03.001
Chi, H. K., Yeh, H. R., & Yang, Y. T. (2009). The impact of brand awareness on consumer purchase intention : The mediating effect of perceived quality and brand loyalty. Journal of International Management Studies, 4(1), 135-144.
Chiu, C. M., Chang, C. C., Cheng, H. L., & Fang, Y. H. (2009). Determinants of customer repurchase intention in online shopping. Online Information Review, 33(4), 761-784. https://doi.org/10.1108/14684520910985710
Choi, J., Moon, Y., Kim, E., & Lee, J. H. (2008). The relationship between perceived investments in csr activities and the evaluation of the company. International Journal of Automotive Industry and Management, 2, 33-47.
Cohen, J. (2013). Statistical Power Analysis for the Behavioral Sciences (2nd ed). NY: Academic Press. https://doi.org/10.4324/9780203771587
Christofi, M., Thrassou, A., Chebbi, H., Ahmed, Z. U., Grandhi, B., & Iaia, L. (2019). CRM campaigns with choice for enhanced business process performance: The collectivist customers' collaborative role for positive word-of-mouth. Business Process Management Journal, 26(5), 1225-1239. https://doi.org/10.1108/BPMJ-04-2019-0146
Cropanzano, R., & Mitchell, M. S. (2005). Social exchange theory: An interdisciplinary review. Journal of Management, 31(6), 874-900. https://doi.org/10.1177/0149206305279602
de Matos, C. A., & Rossi, C. A. V. (2008). Word-of-mouth communications in marketing: a meta-analytic review of the antecedents and moderators. Journal of the Academy of Marketing Science, 36(4), 578-596. https://doi.org/10.1007/s11747-008-0121-1
de Oliveira Santini, F., Ladeira, W. J., Pinto, D. C., Herter, M. M., Sampaio, C. H., & Babin, B. J. (2020). Customer engagement in social media: A framework and meta-analysis. Journal of the Academy of Marketing Science, 48, 1211-1228. https://doi.org/10.1007/s11747-020-00731-5
de Vries, N. J., & Carlson, J. (2014). Examining the drivers and brand performance implications of customer engagement with brands in the social media environment. Journal of Brand Management, 21(6), 495-515. https://doi.org/10.1057/bm.2014.18
Diamantopoulos, A., & Siguaw, J. A. (2006). Formative versus reflective indicators in organizational measure development : A comparison and empirical illustration. British Journal of Management, 17(4), 263-282. https://doi.org/10.1111/j.1467-8551.2006.00500.x
Emerson, R. M. (1976). Social exchange theory. Annual Review of Sociology, 2, 335-362. https://doi.org/10.1146/annurev.so.02.080176.002003
Engel, J. F., Blackwell, R. D., & Miniard, P. W. (1995). Consumer Behavior (6th ed). Chicago, New York.: Dryden Press.
Enz, C. A. (2019). The role of value congruity in intraorganizational power. Administrative Science Quarterly, 33(2), 284-304. https://doi.org/10.2307/2393060
Erciş, A., Ünal, S., Candan, F. B., & Yıldırım, H. (2012). The effect of brand satisfaction, trust and brand commitment on loyalty and repurchase intentions. Procedia - Social and Behavioral Sciences, 58, 1395-1404. https://doi.org/10.1016/j.sbspro.2012.09.1124
Euromonitor International. (2019). The Future Consumers of Southeast Asia. Retrieved from Passport database.
Fornell, C., & Larcker, D. F. (2018). Structural equation models with unobservable variables and measurement error : Algebra and statistics. Journal of Marketing Research, 18(3), 382-388. https://doi.org/10.1177/002224378101800313
Gabisch, J. A., & Gebwu, K. L. (2011). Impact of virtual brand experience on purchase intentions : the role of multichannel congruence. Journal of Electronic Commerce Research, 12(4), 302-320.
Gao, F., & Su, X. (2017). Online and offline information for omnichannel retailing. Manufacturing & Service Operations Management, 19(1), 84-98. https://doi.org/10.1287/msom.2016.0593
Grant, M. (2018, December 14th). Where retailers are placing their omnichannel bets in 2019. Forbes. https://www.forbes.com/sites/michellegrant/2018/12/14/where-retailers-are-placing-their-omnichannel-bets-in-2019/?sh=7593dbbf7e29
Guo, L., Gruen, T. W., & Tang, C. (2017). Seeing relationships through the lens of psychological contracts: the structure of consumer service relationships. Journal of the Academy of Marketing Science, 45(3), 357-376. https://doi.org/10.1007/s11747-015-0462-5
Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2010). Multivariate Data Analysis: A Global Perspective (7th ed). New Jersey: Pearson Prentice Hall.
Hair, J. F., Hopkins, L., Georgia, M., & College, S. (2008). Partial least squares structural equation modeling (PLS-SEM ): An emerging tool in business research. European Business Review, 26(2), 106-121. https://doi.org/10.1108/EBR-10-2013-0128
Hair Jr, J. F., Hult, G. T. M., Ringle, C., & Sarstedt, M. (2017). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM) (2nd ed). Sage publications.
Harrigan, P., Evers, U., Miles, M. P., & Daly, T. (2018). Customer engagement and the relationship between involvement, engagement, self-brand connection and brand usage intent. Journal of Business Research, 88, 388-396. https://doi.org/10.1016/j.jbusres.2017.11.046
Hellier, P. K., Geursen, G. M., Carr, R. A., & Rickard, J. A. (2003). Customer repurchase intention. European Journal of Marketing, 37(11/12), 1762-1800. https://doi.org/10.1108/03090560310495456
Hollebeek, L. D. (2018). Individual-level cultural consumer engagement style: Conceptualization, propositions and implications. International Marketing Review, 35(1), 42-71. https://doi.org/10.1108/IMR-07-2016-0140
Hollebeek, L. D., Conduit, J., & Brodie, R. J. (2016). Strategic drivers, anticipated and unanticipated outcomes of customer engagement. Journal of Marketing Management, 32(5-6), 393-398. https://doi.org/10.1080/0267257X.2016.1144360
Islam, J. U., Rahman, Z., & Hollebeek, L. D. (2018). Consumer engagement in online brand communities: a solicitation of congruity theory. Internet Research, 28(1), 23-45. https://doi.org/10.1108/IntR-09-2016-0279
Islam, J. U., Hollebeek, L. D., Rahman, Z., Khan, I., & Rasool, A. (2019). Customer engagement in the service context: an empirical investigation of the construct, its antecedents and consequences. Journal of Retailing and Consumer Services, 50, 277-285. https://doi.org/10.1016/j.jretconser.2019.05.018
Kelley, H. H., & Thibaut, J. W. (1978). Interpersonal Relations: A Theory of Interdependence. NY: John Wiley & Sons.
Kline, R. B. (2015). Principles and Practice of Structural Equation Modeling (3rd ed). Guilford publications.
Kock, N., & Lynn, G. S. (2012). Lateral collinearity and misleading results in variance-based SEM : An illustration and recommendations lateral collinearity and misleading results in variance. Journal of the Association of Information System, 13(7), 546-580. https://doi.org/10.17705/1jais.00302
Kumar, V., & Pansari, A. (2016). Competitive advantage through engagement. Journal of Marketing Research, 53(4), 497-514. https://doi.org/10.1509/jmr.15.0044
Larasati, Y., & Hananto, A. (2012). The role of value congruity and consumer brand identification toward development of brand commitment and positive word of mouth. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.2200313
Lawler, E. J. (2001). An affect theory of social exchange. American Journal of Sociology, 107(2), 321-352. https://doi.org/10.1086/324071
Lee, Z. W., Chan, T. K., Chong, A. Y. L., & Thadani, D. R. (2019). Customer engagement through omnichannel retailing: The effects of channel integration quality. Industrial Marketing Management, 77, 90-101. https://doi.org/10.1016/j.indmarman.2018.12.004
Lee, S., & Jeong, M. (2014). Enhancing online brand experiences: An application of congruity theory. International Journal of Hospitality Management, 40, 49-58. https://doi.org/10.1016/j.ijhm.2014.03.008
Loiacono, E. T., Watson, R. T., & Goodhue, D. L. (2007). WebQual: An instrument for consumer evaluation of web sites. International Journal of Electronic Commerce, 11(3), 51-87. https://doi.org/10.2753/JEC1086-4415110302
Marshall, M. N. (1996). Sampling for qualitative research Sample size. Family Practice, 13(6), 522-525. https://doi.org/10.1093/fampra/13.6.522
Maslowska, E., Malthouse, E. C., & Collinger, T. (2016). The customer engagement ecosystem. Journal of Marketing Management, 32(5-6), 469-501. https://doi.org/10.1080/0267257X.2015.1134628
Moliner, M. Á., Monferrer-Tirado, D., & Estrada-Guillén, M. (2018). Consequences of customer engagement and customer self-brand connection. Journal of Services Marketing, 32(4), 387-399. https://doi.org/10.1108/JSM-08-2016-0320
Moran, G., Muzellec, L., & Nolan, E. (2014). Consumer moments of truth in the digital context. Journal of Advertising Research, 54(2), 200-204. https://doi.org/10.2501/JAR-54-2-200-204
Nijssen, E., Singh, J., Sirdeshmukh, D., & Holzmüeller, H. (2003). Investigating industry context effects in consumer-firm relationships: Preliminary results from a dispositional approach. Journal of the Academy of Marketing Science, 31(1), 46-60. https://doi.org/10.1177/0092070302238604
Oh, L. B., & Teo, H. H. (2010). Consumer value co-creation in a hybrid commerce service-delivery system. International Journal of Electronic Commerce, 14(3), 35-62. https://doi.org/10.2753/JEC1086-4415140303
Orendorff, A. (2018). Omni-channel retail strategy: The what, why, and how of "in-store" shopping. Omni-Channel. https://www.shopify.com/enterprise/omni-channel-retail-strategy
Osborne, J. W., & Costello, A. B. (2005). Best practices in exploratory factor analysis: Four recommendations for getting the most from your analysis. Practical Assessment Research & Evaluation, 10(7), 1-9.
Park, J., & Kim, R. B. (2019). The effects of integrated information & service, institutional mechanism and need for cognition (NFC) on consumer omnichannel adoption behavior. Asia Pacific Journal of Marketing and Logistics, 33(6), 1386-1414. https://doi.org/10.1108/APJML-06-2018-0209
Phua, J., & Kim, J. (2018). Starring in your own Snapchat advertisement: Influence of self-brand congruity, self-referencing and perceived humor on brand attitude and purchase intention of advertised brands. Telematics and Informatics, 35(5), 1524-1533. https://doi.org/10.1016/j.tele.2018.03.020
Pick, D., Mittal, V., Verhoef, P. C., Lemon, K. N., van Doorn, J., Pirner, P., & Nass, S. (2010). Customer engagement behavior: Theoretical foundations and research directions. Journal of Service Research, 13(3), 253-266. https://doi.org/10.1177/1094670510375599
Piotrowicz, W., & Cuthbertson, R. (2014). Introduction to the special issue information technology in retail: toward omnichannel retailing. International Journal of Electronic Commerce, 18(4), 5-16. https://doi.org/10.2753/JEC1086-4415180400
Podsakoff, P. M., MacKenzie, S. B., Lee, J. Y., & Podsakoff, N. P. (2003). Common method biases in behavioral research: A Critical review of the literature and recommended remedies. Journal of Applied Psychology, 88(5), 879-903. https://doi.org/10.1037/0021-9010.88.5.879
Saghiri, S., Wilding, R., Mena, C., & Bourlakis, M. (2017). Toward a three-dimensional framework for omni-channel. Journal of Business Research, 77, 53-67. https://doi.org/10.1016/j.jbusres.2017.03.025
Sashi, C. M. (2012). Customer engagement, buyer-seller relationships, and social media. Management Decision, 50(2), 253-272. https://doi.org/10.1108/00251741211203551
Schoenbachler, D. D., & Gordon, G. L. (2002). Multi-channel shopping: Understanding what drives channel choice. Journal of Consumer Marketing, 19(1), 42-53. https://doi.org/10.1108/07363760210414943
Sekaran, U. & Bougi, R. (2014). Research Methods for Business: A Skill-Building Approach (7th ed). John Wiley & Sons.
Shirkhodaie, M., & Rastgoo-deylami, M. (2016). Positive word of mouth marketing: explaining the roles of value congruity and brand love. Journal of Competitiveness, 8(1), 19-37. https://doi.org/10.7441/joc.2016.01.02
Simon, C., Brexendorf, T. O., & Fassnacht, M. (2016). The impact of external social and internal personal forces on consumers' brand community engagement on Facebook. Journal of Product & Brand Management, 25(5), 409-423. https://doi.org/10.1108/JPBM-03-2015-0843
Sousa, R., & Voss, C. (2004). Operations and technology management service quality in multi-channel services. Operations and Technology Management Working Paper Otm 04-023 2004/12/09, 44, 0-46.
Sousa, R., & Voss, C. A. (2006). Service quality in multichannel services employing virtual channels. Journal of Service Research, 8(4), 356-371. https://doi.org/10.1177/1094670506286324
Srivastava, K., & Sharma, N. K. (2013). Service quality, corporate brand image, and switching behavior: the mediating role of customer satisfaction and repurchase intention. Services Marketing Quarterly, 34(4), 274-291. https://doi.org/10.1080/15332969.2013.827020
Tannenbaum, P. H., & Osgood, C. E. (1955). The principle of congruity in the prediction of attitude change. Psychological Review, 62(1), 42-55. https://doi.org/10.1037/h0048153
Tseng, Y. M., Liao, B. C., & Jan, Y. S. (2004). The study of relation between product value, brand trust, brand affect and brand loyalty. Journal of Business Administration, 61(1), 29-50.
Verhoef, P. C., Kannan, P. K., & Inman, J. J. (2015). From multi-channel retailing to omni-channel retailing. Journal of Retailing, 91(2), 174-181. https://doi.org/10.1016/j.jretai.2015.02.005
Verleye, K., Gemmel, P., & Rangarajan, D. (2014). Managing engagement behaviors in a network of customers and stakeholders: Evidence from the nursing home sector. Journal of Service Research, 17(1), 68-84. https://doi.org/10.1177/1094670513494015
Vivek, S. D., Beatty, S. E., Dalela, V., & Morgan, R. M. (2014). A generalized multidimensional scale for measuring customer engagement. Journal of Marketing Theory and Practice, 22(4), 401-420. https://doi.org/10.2753/MTP1069-6679220404
Vivek, S. D., Beatty, S. E., & Morgan, R. M. (2012). Customer engagement: Exploring customer relationships beyond purchase. Journal of Marketing Theory and Practice, 20(2), 122-146. https://doi.org/10.2753/MTP1069-6679200201
Wakolbinger, L. M., & Stummer, C. (2013). Multi-channel management: an exploratory study of current practices. International Journal of Services, Economics and Management, 5(1/2), 112. https://doi.org/10.1504/IJSEM.2013.051859
Wong, H. Y., & Merrilees, B. (2015). An empirical study of the antecedents and consequences of brand engagement. Marketing Intelligence & Planning, 33(44), 575-591. https://doi.org/10.1108/MIP-08-2014-0145
Wong, K. W. (2020, March 11). Embracing the retail omni-channel experience. The Edge Malaysia. https://www.theedgemarkets.com/article/cover-story-embracing-retail-omnichannel-experience
Yang, Q., Pang, C., Liu, L., Yen, D. C., & Michael Tarn, J. (2015). Exploring consumer perceived risk and trust for online payments: An empirical study in China's younger generation. Computers in Human Behavior, 50, 9-24. https://doi.org/10.1016/j.chb.2015.03.058
Zainol, Z., Omar, N. A., Osman, J., & Habidin, N. F. (2016). The effect of customer-brand relationship investments' dimensions on customer engagement in emerging markets. Journal of Relationship Marketing, 15(3), 172-199. https://doi.org/10.1080/15332667.2016.1209051
Zhang, M., Hu, M., Guo, L., & Liu, W. (2017). Understanding relationships among customer experience, engagement, and word-of-mouth intention on online brand communities. Internet Research, 24(4), 839-857. https://doi.org/10.1108/IntR-06-2016-0148
Downloads
Published
How to Cite
Issue
Section
License
Copyright Transfer Statement for Journal
1) In signing this statement, the author(s) grant UNIMAS Publisher an exclusive license to publish their original research papers. The author(s) also grant UNIMAS Publisher permission to reproduce, recreate, translate, extract or summarize, and to distribute and display in any forms, formats, and media. The author(s) can reuse their papers in their future printed work without first requiring permission from UNIMAS Publisher, provided that the author(s) acknowledge and reference publication in the Journal.
2) For open access articles, the author(s) agree that their articles published under UNIMAS Publisher are distributed under the terms of the CC-BY-NC-SA (Creative Commons Attribution-Non Commercial-Share Alike 4.0 International License) which permits unrestricted use, distribution, and reproduction in any medium, for non-commercial purposes, provided the original work of the author(s) is properly cited.
3) For subscription articles, the author(s) agree that UNIMAS Publisher holds copyright, or an exclusive license to publish. Readers or users may view, download, print, and copy the content, for academic purposes, subject to the following conditions of use: (a) any reuse of materials is subject to permission from UNIMAS Publisher; (b) archived materials may only be used for academic research; (c) archived materials may not be used for commercial purposes, which include but not limited to monetary compensation by means of sale, resale, license, transfer of copyright, loan, etc.; and (d) archived materials may not be re-published in any part, either in print or online.
4) The author(s) is/are responsible to ensure his or her or their submitted work is original and does not infringe any existing copyright, trademark, patent, statutory right, or propriety right of others. Corresponding author(s) has (have) obtained permission from all co-authors prior to submission to the journal. Upon submission of the manuscript, the author(s) agree that no similar work has been or will be submitted or published elsewhere in any language. If submitted manuscript includes materials from others, the authors have obtained the permission from the copyright owners.
5) In signing this statement, the author(s) declare(s) that the researches in which they have conducted are in compliance with the current laws of the respective country and UNIMAS Journal Publication Ethics Policy. Any experimentation or research involving human or the use of animal samples must obtain approval from Human or Animal Ethics Committee in their respective institutions. The author(s) agree and understand that UNIMAS Publisher is not responsible for any compensational claims or failure caused by the author(s) in fulfilling the above-mentioned requirements. The author(s) must accept the responsibility for releasing their materials upon request by Chief Editor or UNIMAS Publisher.
6) The author(s) should have participated sufficiently in the work and ensured the appropriateness of the content of the article. The author(s) should also agree that he or she has no commercial attachments (e.g. patent or license arrangement, equity interest, consultancies, etc.) that might pose any conflict of interest with the submitted manuscript. The author(s) also agree to make any relevant materials and data available upon request by the editor or UNIMAS Publisher.