The effects of corporate brand symbolism on consumer satisfaction and loyalty: evidence from Australia

Asia Pacific Journal of Marketing and Logistics
The effects of corporate brand symbolism on consumer satisfaction and loyalty: evidence from Australia.
Tatiana Anisimova
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To cite this document:
Tatiana Anisimova , (2016),"The effects of corporate brand symbolism on consumer satisfaction and loyalty: evidence from
Australia.", Asia Pacific Journal of Marketing and Logistics, Vol. 28 Iss 3 pp. -
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http://dx.doi.org/10.1108/APJML-05-2015-0086
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The effects of corporate brand symbolism on consumer satisfaction and loyalty: Evidence
from Australia.
Introduction
Globalization triggered is a shift in the marketing emphasis from product to corporate brands
(Abratt and Kleyn, 2012; Melewar et al., 2012). Building a global brand is the aspiration of
many automotive companies (Fetscherin, and Toncar, 2010). The difficulty of maintaining
credible product differentiation in the face of imitation and homogenization of products and
services also contributed to a move towards corporate branding. Corporate brand orientation was
found to have favourable effects on company financial performance (Gromark and Melin, 2011)
and public perception about an organization (Fombrun, 1996).
Popularization of automobiles has been increasing and has generated important social changes,
in terms of improved quality of life and greater efficiency of consumer journeys (Lois and Sáez,
2009). A car choice is a complex process that involves consideration of both socioeconomic and
psychosocial factors affecting consumers (Domarchi et al., 2008; Thanasuta et al., 2009). Along
with an instrumental function of transporting, private vehicles fulfil symbolic consumer needs
such as self-expression (Belk, 1988). Status and social comparison also plays a considerable role
in a consumer relationship with car brands (Lois and Sáez, 2009). Given the nature of the car
industry, where the technological innovations are paramount, the focus on utilitarian and
practical features often prevail though (Lois and Sáez, 2009). As result, competitive
differentiation is often viewed in terms of how automakers innovate compared to the competition
– in three parameters: quality, cost/value and timeliness measures (Tay, 2003). A report byDownloaded by UNIVERSITY OF OTAGO At 05:49 03 May 2016 (PT)

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KPMG states that there has been a sharp increase in complaints about car technology (e.g.
navigation, entertainment) (KPMG, 2012). It is a cautionary tale, however, because even the
most innovative technology in the world also will quickly create dissatisfaction if owners cannot
get it to work. Some researchers began to note the importance of symbolic processes within the
consumer/brand relationship - such as status and social comparison (Steg, 2005). According to
Langer (1997), brands make statements to other people of who consumers want to be perceived
as and assist consumers in winning acceptance, approval of others. In line with Langer (1997),
Maynard ((2007, in Stokburger-Sauer et al. (2012)) in her report on Toyota Prius notes:
“Why has the Toyota Prius enjoyed such success ... when most other hybrid models
struggle to find buyers? One answer may be that buyers of the Prius want everyone to
know they are driving a hybrid .... In fact, more than half the Prius buyers surveyed this
Spring...said the main reason they purchased their car was that ‘it makes a statement
about me”...
Eliott and Wattanasuwan (1998) argue that brands are symbolic resources used by consumers to
communicate the self to others. Woodside et al. (2008) support this argument by describing how
consumers use brand in their stories about themselves and others in their study. This suggests
that consumer-related theories and practices need to view the symbolic perspective in the post-
modern consumer culture as highly related to generating symbolic meanings in the process of
self-definition which constructs both self-identity and social-identity of consumers (Tsai, 2005).
The automobile market in Australia operates in a highly competitive, international arena with
various pressures that include rising cost of oil sustainability and innovation demands. TheDownloaded by UNIVERSITY OF OTAGO At 05:49 03 May 2016 (PT)

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automotive market has been dominated by subsidiaries of original equipment manufacturers
(OEM) of Japanese and American origin. Due to the strong Australian dollar it is increasingly
difficult for Australian manufacturers to remain competitive in the global market. In addition, car
assembly plants did not have sufficient scale in their market in Australia and they also were
engaged in product lines customers are increasingly finding unpopular (Robin and Redrup, 2014;
Rody, 2014). To make matters more complex for the Australian car industry, Ford, Holden and
Toyota even announced closure of their manufacturing in Australia.
Values and emotions symbolized by the brand are increasingly becoming some of the key
elements of differentiation strategies and important factors that affect consumers. However, there
is still a limited understanding regarding the effects of brand symbolism on consumer
satisfaction and loyalty with durable brands such as automobiles. Competitive differentiation in
automobile industries is still primarily viewed through the lenses of technological advancements.
Although symbolic consumption received attention in the marketing literature (Tsai, 2005;
Vazquez et al., 2002) the application of this concept in corporate branding is limited.
Specifically, the investigation of symbolic consumption related to the car brands is scarce with
some exceptions (i.e. Schembri et al., 2010). Previous studies imply that brands provide more
than the functional value and the meaning of the brand for consumers becomes critical to
understand (Cooper et al., 2005; Schmitt, 2012). Based on the review of previous literature, this
study builds a valid, parsimonious measure of corporate brand symbolism and examines its
effects on consumer satisfaction and loyalty. By focusing on the consumer viewpoint, which is
considered a priority for marketing research (Hoeffel and Keller, 2003), this study seeks to attain
a better understanding of corporate brand symbolism on consumer behaviour and contribute newDownloaded by UNIVERSITY OF OTAGO At 05:49 03 May 2016 (PT)

4
knowledge into consumer brand identification theory and the link between symbolic values an
and consumer satisfaction and loyalty.
Background to the research
Symbolic brand values – two sides of the same coin?
Brands, as carriers of symbolic meanings (Levy, 1959), can help consumers achieve their
fundamental identity goals and projects (Belk, 1988). Consumers often choose their brands as a
symbol of their social interrelations with others (Koksal, 2014). “Choices are made more
easily—either more routinely or more impulsively, seemingly-because one object is symbolically
more harmonious with our goals, feelings, and self-definitions than another’ (Levy, 1959, p.
120). The purchase of automobiles is a high-involvement decision-making process (Brucks et al.,
2000). This suggests that more consideration should be given to the meanings associated with
less tangible brand characteristics such symbolic brand meaning. While a functional product
utility may involve performance, safety and quality attributes, symbolic brand utility
communicates to consumers through a variety of meanings such as individuality and prestige.
Development of corporate brand symbolism is viewed as critical due to its ability to influence
consumer choices (e.g. Brucks et al., 2000; Elliott and Wattanasuwan, 1998). Brucks et al.’s
(2000) study shown that consumer use brand names to evaluate brand prestige. Vazquez et al.
(2002) highlight the importance of symbolic benefits for the development of consumer-based
brand equity. Park et al. (1986) argue that a brand concept should be either symbolic or
functional, thus tapping into consumers’ symbolic or functional needs respectively.Downloaded by UNIVERSITY OF OTAGO At 05:49 03 May 2016 (PT)

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The views on what constitutes symbolic brand values vary in the extant literature. Symbolic
meaning was even used interchangeably with a brand personality construct (i.e. Sung and
Tinkham, 2005). Sung and Tinkaham (2005) claim that symbolic meaning of commercial brands
represent values and beliefs of consumers. Either implicitly or explicitly, previous studies
highlight two components of symbolic brand values. Belk (1988) recognizes that the person-
possession relationship goes beyond a two-way relationship, as important others also influence
the relationship. Vazquez et al’s (2002) classify symbolic brand utility in two categories: the
utility associated with the product and the utility associated with the corporate brand.Tsai (2005)
identifies self-identity and social identity within the brand symbolism construct. Elliott and
Wattanasuwan (1998) also distinguish between self and social elements within brand symbolism.
These functions of the symbolic meanings of products operate in two directions: outward in
constructing the social world, social-symbolism; and inward in constructing our self-identity,
self-symbolism (Elliott, 1997).
According to self-concept theory, people behave in ways that maintain and enhance their sense
of self. One way to do this is through the use of brands (Strizhakova et al., 2011), which are
imbued with symbolic meanings (Chaplin and John, 2005). Brands are also social representations
(Moscovici and Markova, 1998) that can be used to signify not only an individual self but also a
group, a society, or culture (Schmitt, 2010). Self and social symbolism are inter-related -
although the self-concept is relatively stable over time, the self is also malleable in that it may be
influenced by social roles, causing people to behave differently (Hollenbeck and Kaikati, 2012).
Understanding symbolic brand meaning is therefore a strategic imperative for manufacturers,
dealers and marketing practitioners. Previous research has shown that symbolic motives play anDownloaded by UNIVERSITY OF OTAGO At 05:49 03 May 2016 (PT)

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important role for car use (Steg, 2005) as well as for car choice (Choo and Mokhtarian, 2004;
Turrentine and Kurani, 2007). The study by Peters et al. (2011) shown symbolic values to be
important preconditions for consumer adoption of fuel-efficient vehicles.
Several questions, remain unanswered. Are self and social symbolisms distinguished in
consumer minds? Are self and social symbolisms the two ends of a continuum? The paucity of
research to illuminate these issues resulted in this study. This study relates corporate brand
symbolism to two valuable outcomes such as brand satisfaction and loyalty that contribute to a
company's financial performance and, ultimately, to its long-term success (Gupta and Zeithaml,
2006; Oliver, 1997).
Hypotheses development
Corporate brand symbolism and consumer satisfaction
Although favourable brand image facilitates acquiring new consumers, how a corporate brand
image impacts already established customer relationships has not been adequately investigated
(Helm, 2006). This study includes satisfaction as it was shown to play an important role in
generating consumer loyalty (e.g. Liang and Zhang, 2012). Satisfaction was found to be an
important post-purchase response associated with favourable word-of-mouth (Brown et al.,
2006; Reynolds and Beatty, 1999), consumer loyalty (Swan and Oliver, 1989) and consumer
switching behaviour (Shukla, 2004). Wu (2014) found that perceived value and corporate image
are main determinants of consumer satisfaction. However, consumer satisfaction was often been
studied in the marketing literature as a mediator (e.g. Liang and Zhang, 2012) through which
brand impacts on consumer loyalty and less attention has been paid to direct effects of brandDownloaded by UNIVERSITY OF OTAGO At 05:49 03 May 2016 (PT)

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benefits on consumer satisfaction (see Ekinci et al., 2008 for exception). Ekinci et al.'s (2008)
study found symbolic consumption benefits to be an antecedent of consumer satisfaction.
Previous research suggest that higher perception of a retailer would also lead to higher purchase
satisfaction (e.g. Chatterjee, 2007). One way to explain overall purchase satisfaction is to explain
and show it through post-purchase evaluation (McCollough and Gremler, 2004). Hence, the
following hypotheses are formulated:
H1: Consumer perceived brand symbolism will be significantly and positively related to overall
consumer satisfaction with the brand
H2: Consumer perceived brand symbolism will be significantly and positively related to overall
consumer satisfaction with the car dealership
Acquisition and maintenance are the two key important elements of motorization today (Kiff,
2000). In addition, more consumers might find some sort of lease/maintenance package
attractive, particularly if bundled with other features that take into account new communications
systems, congestion, navigation systems, road pricing and other services (Kiff, 2000). The first
hypothesis is therefore postulated as follows:
H3: Consumer perceived brand symbolism is significantly and positively related to consumer
satisfaction with vehicle acquisition
H4: Consumer perceived brand symbolism is significantly and positively related to consumer
satisfaction with customized motoring solutionsDownloaded by UNIVERSITY OF OTAGO At 05:49 03 May 2016 (PT)