Indian Journal of Marketing

Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

Product Innovation, Customer Satisfaction, and Brand Loyalty of Using Smartphones Among University Students : PLS – SEM Approach


Affiliations
1 College of Business, University of Buraimi, P.O Box 890, P.C. 512, Oman
2 College of Business, Prince Sultan University, Riyadh, Saudi Arabia
     

   Subscribe/Renew Journal


This paper examined the impact of product innovation attributes (relative advantage, complexity, compatibility, trialability, and observability) on customer satisfaction and brand loyalty together with gender as a moderator between customer satisfaction and brand loyalty. Based on a sample of 193 university students using partial least square structural equation modeling (PLS-SEM) technique, relative advantage, complexity, compatibility, trialability, and observability were found to positively impact customer satisfaction. The results also demonstrated that product innovation attributes were the key predictors of customer satisfaction. The results revealed that loyal customers utilized the services of specific smartphones as per their preferences consistently. Additionally, the results illustrated that customer satisfaction significantly influenced brand loyalty. Further, the study also found that gender significantly moderated customer satisfaction and brand loyalty. As a practical implication, in the competitive market, the managers need to understand the requirements of the customers and add value to customers by providing innovative products. Innovation in a product improves customer satisfaction and commitment of customers towards a brand. Managers need to understand the requirement of the customers and create value accordingly. As a novelty, the study is a first of its kind to investigate the relationship between product innovation attributes, customer satisfaction, and brand loyalty with gender as a moderator.

Keywords

Product Innovation, Customer Satisfaction, Brand Loyalty, Gender, Smartphones.

Paper Submission Date : January 6, 2020; Paper Sent Back for Revision : June 12, 2020; Paper Acceptance Date : October 12, 2020.

User
Subscription Login to verify subscription
Notifications
Font Size

  • Ajzen, I., & Fishbein, M. (1980.. Understanding attitudes and predicting social behaviour. Englewood Cliffs, NJ : Prentice-Hall.

  • Amawate, V., & Deb, M. (2019.. Antecedents and consequences of consumer skepticism toward cause-related marketing : Gender as moderator and attitude as mediator. Journal of Marketing Communications, 25(8., 1–22. https://doi.org/10.1080/13527266.2019.1630663

  • Anderson, J. C., & Gerbing, D. W. (1988.. Structural equation modeling in practice : A review and recommended two-step approach. Psychological Bulletin, 103(3., 411-423. https://doi.org/10.1037/0033-2909.103.3.411

  • Bacon, D. R., Sauer, P. L., & Young, M. (1995.. Composite reliability in structural equations modeling. Educational and Psychological Measurement, 55(3., 394–406. https://doi.org/10.1177%2F0013164495055003003

  • Balakrishnan, B. K., Dahnil, M. I., & Yi, W. J. (2014.. The impact of social media marketing medium toward purchase intention and brand loyalty among Generation Y. Procedia-Social and Behavioral Sciences, 148, 177–185. https://doi.org/10.1016/j.sbspro.2014.07.032

  • Bhattacherjee, A., Limayem, M., & Cheung, C. M. (2012.. User switching of information technology : A theoretical synthesis and empirical test. Information & Management, 49(7–8., 327–333. https://doi.org/10.1016/j.im.2012.06.002

  • Cecere, G., Corrocher, N., & Battaglia, R. D. (2015.. Innovation and competition in the smartphone industry : Is there a dominant design ? Telecommunications Policy, 39(3-4., 162-175. https://doi.org/10.1016/j.telpol.2014.07.002

  • Chang, Y.- W., & Polonsky, M. J. (2012.. The influence of multiple types of service convenience on behavioral intentions : The mediating role of consumer satisfaction in a Taiwanese leisure setting. International Journal of Hospitality Management, 31(1., 107–118. https://doi.org/10.1016/j.ijhm.2011.05.003

  • Choi, Y. G., Ok, C., & Hyun, S. S. (2017.. Relationships between brand experiences, personality traits, prestige, relationship quality, and loyalty : An empirical analysis of coffeehouse brands. International Journal of Contemporary Hospitality Management, 29(4., 1185-1202. https://doi.org/10.1108/IJCHM-11-2014-0601

  • Choudhury, V., & Karahanna, E. (2008.. The relative advantage of electronic channels : A multidimensional view. MIS Quarterly, 32(1., 179-200. https://doi.org/10.2307/25148833

  • Cohen, J. (1988.. Statistical power analysis for the behavioral sciences (2nd ed... Hillsdale, NJ: Erlbaum.

  • Cronbach, L. J. (1951.. Coefficient alpha and the internal structure of tests. Psychometrika, 16(3., 297–334. https://doi.org/10.1007/BF02310555

  • Dickinson-Delaporte, S., Beverland, M., & Lindgreen, A. (2010.. Building corporate reputation with stakeholders : Exploring the role of message ambiguity for social marketers. European Journal of Marketing, 44(11/12., 1856–1874. https://doi.org/10.1108/03090561011079918

  • Dijkstra, T. K., & Henseler, J. (2015.. Consistent partial least squares path modeling. MIS Quarterly, 39(2., 297-316. DOI: 10.25300/MISQ/2015/39.2.02

  • Donavan, D. T., Brown, T. J., & Mowen, J. C. (2004.. Internal benefits of service-worker customer orientation : Job satisfaction, commitment, and organizational citizenship behaviors. Journal of Marketing, 68(1., 128–146. https://doi.org/10.1509/jmkg.68.1.128.24034

  • Faul, F., Erdfelder, E., Lang, A.-G., & Buchner, A. (2007.. G* Power 3 : A flexible statistical power analysis program for the social, behavioral, and biomedical sciences. Behavior Research Methods, 39(2., 175-191. https://doi.org/10.3758/BF03193146

  • Fornell, C., & Larcker, D. F. (1981.. Structural equation models with unobservable variables and measurement error : Algebra and statistics. Los Angeles, CA : SAGE Publications. DOI: 10.2307/3150980

  • Geissler, M. (2006.. Aligning technology with culture: Connecting information and communication technology adoption to cultural dimensions. ProQuest. Capella University. https://doi.org/10.1108

  • Gold, A. H., Malhotra, A., & Segars, A. H. (2001.. Knowledge management : An organizational capabilities perspective. Journal of Management Information Systems, 18(1., 185-214. https://doi.org/10.1080/07421222.2001.11045669

  • Hair Jr., J., Sarstedt, M., Hopkins, L., & Kuppelwieser, V. (2014.. 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

  • Han, H., & Ryu, K. (2009.. The roles of the physical environment, price perception, and customer satisfaction in determining customer loyalty in the restaurant industry. Journal of Hospitality & Tourism Research, 33(4., 487–510. https://doi.org/10.1177/1096348009344212

  • Henseler, J., & Fassott, G. (2010.. Testing moderating effects in PLS path models: An illustration of available procedures. In, V. E. Vinzi, W. Chin, J. Henseler, H. Wang (eds.., Handbook of partial least squares. Springer handbooks of computational statistics (pp. 713-735.. Berlin, Heidelberg : Springer. https://doi.org/10.1007/978-3-540-32827-8_31

  • Henseler, J., Ringle, C. M., & Sarstedt, M. (2015.. A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43(1., 115-135. https://doi.org/10.1007/s11747-014-0403-8

  • Karatepe, O. M. (2011.. Service quality, customer satisfaction and loyalty : The moderating role of gender. Journal of Business Economics and Management, 12(2., 278-300. DOI: 10.3846/16111699.2011.573308

  • Kebritchi, M. (2010.. Factors affecting teachers' adoption of educational computer games : A case study. British Journal of Educational Technology, 41(2., 256-270. DOI: 10.1111/j.1467-8535.2008.00921.x

  • Kline, R. (2011.. Principles and practice of structural equation modeling (3rd. ed.. New York : Guilford Press.

  • Kotler, P., Saliba, S., & Wrenn, B. (1991.. Marketing management : Analysis, planning, and control: Instructor's Manual. Prentice - Hall.

  • Kumar, M. R., & Narayanan, A. (2017.. Assessing the loyalty of shoppers of attire multi-brand outlets : A research study. Indian Journal of Marketing, 47(9., 7–22. https://doi.org/10.17010/ijom/2017/v47/i9/118090

  • Kumar, S. S., & Menon, R. P. (2017.. Brand loyalty of customers in smartphone brands. Indian Journal of Marketing, 47(3., 8–15. https://doi.org/10.17010/ijom/2017/v47/i3/111417

  • Ladhari, R., & Leclerc, A. (2013.. Building loyalty with online financial services customers : Is there a gender difference ? Journal of Retailing and Consumer Services, 20(6., 560-569. https://doi.org/10.1016/j.jretconser.2013.07.005

  • Lee, D., Moon, J., Kim, Y. J., & Yi, M. Y. (2015.. Antecedents and consequences of mobile phone usability : Linking simplicity and interactivity to satisfaction, trust, and brand loyalty. Information & Management, 52(3., 295-304. https://doi.org/10.1016/j.im.2014.12.001

  • Mahmoud, M. A., Hinson, R. E., & Anim, P. A. (2018.. Service innovation and customer satisfaction : The role of customer value creation. European Journal of Innovation Management, 21(3., 402-422. https://doi.org/10.1108/EJIM-09-2017-0117

  • Majekodunmi, S. A., & Oginni, B. O. (2019.. Effect of product innovation on customer satisfaction : An overview of insight into Nigerian Service Market. Noble International Journal of Social Sciences Research, 4(1., 1–7. Retrieved from https://econpapers.repec.org/article/napnijssr/2019_3ap_3a1-7.htm

  • Malik, M. (2012.. A study on customer's satisfaction towards service quality of organized retail stores in Haryana. Indian Journal of Marketing, 42(2., 51-60. Retrieved from http://www.indianjournalofmarketing.com/index.php/ijom/article/view/37455

  • McLaughlin, P. (2016.. Creating a culture for radical innovation in a small mature business. Proceedings of the Institution of Mechanical Engineers, Part B : Journal of Engineering Manufacture, 232(8., 1471–1483. https://doi.org/10.1177/0954405416656907

  • Moore, G. C., & Benbasat, I. (1991.. Development of an instrument to measure the perceptions of adopting an information technology innovation. Information Systems Research, 2(3., 192-222. https://doi.org/10.1287/isre.2.3.192

  • Nemati, A. R., Khan, K., & Iftikhar, M. (2010.. Impact of innovation on customer satisfaction and brand loyalty, a study of mobile phones users in Pakistan. European Journal of Social Sciences, 16(2., 299-306.

  • Oliveira, T., & Martins, M. F. (2011.. Literature review of information technology adoption models at firm level. The Electronic Journal Information Systems Evaluation, 14(1., 110-121.

  • Ong, K. S., Nguyen, B., & Syed Alwi, S. F. (2017.. Consumer-based virtual brand personality (CBVBP., customer satisfaction and brand loyalty in the online banking industry. International Journal of Bank Marketing, 35(3., 370-390. https://doi.org/10.1108/IJBM-04-2016-0054

  • Panigrahi, S. K., Azizan, N. A., & Khan, M. W. (2018.. Investigating the empirical relationship between service quality, trust, satisfaction, and intention of customers purchasing life insurance products. Indian Journal of Marketing, 48(1., 28–46. https://doi.org/10.17010/ijom/2018/v48/i1/120734

  • Panigrahi, S., Zainuddin, Y., & Azizan, N. (2014.. Investigating key determinants for the success of knowledge management system (KMS. in higher learning institutions of Malaysia using structural equation modeling. The International Journal of Humanities & Social Studies (IJHSS., 2(6., 202–209. Retrieved from http://www.internationaljournalcorner.com/index.php/theijhss/article/view/140374

  • Pappu, R., & Quester, P. (2016.. Brand innovativeness effects on perceived quality, satisfaction and loyalty. In, Looking forward, looking back : Drawing on the past to shape the future of marketing (pp. 763-763.. Springer. DOI: 10.1007/978-3-319-24184-5

  • Peppers, D., & Rogers, M. (2016.. Managing customer experience and relationships : A strategic framework. John Wiley & Sons.

  • Radović-Marković, M., Shoaib Farooq, M., & Marković, D. (2017.. Strengthening the resilience of small and medium-sized enterprises. Conference Proceedings of Management, Enterprise and Benchmarking in the 21st century, Budapest. Retrieved from https://core.ac.uk/download/pdf/85227056.pdf

  • Rogers, E. M. (2003.. Elements of diffusion. In, Diffusion of innovations (5th ed... Simon & Schuster.

  • Rogers, E. M. (2010.. Diffusion of innovations. Simon and Schuster.

  • Rothaermel, F. T. (2016.. Competitive advantage in technology intensive industries. In, Technological innovation : Generating economic results (Advances in the study of entrepreneurship, innovation and economic growth (Vol. 26, pp. 233-256.. Emerald Group Publishing Limited. https://doi.org/10.1108/S1048-473620160000026008

  • Rubera, G., & Kirca, A. H. (2017.. You gotta serve somebody : The effects of firm innovation on customer satisfaction and firm value. Journal of the Academy of Marketing Science, 45(1., 741–761. https://doi.org/10.1007/s11747-016-0512-7

  • Sánchez-Hernández, R. M., Martínez - Tur, V., Peiró, J. M., & Moliner, C. (2010.. Linking functional and relational service quality to customer satisfaction and loyalty : Differences between men and women. Psychological Reports, 106(2., 598–610. https://doi.org/10.2466%2Fpr0.106.2.598-610

  • Scott, S. V., & Zachariadis, M. (2010.. The impact of the diffusion of a financial innovation on company performance: An analysis of SWIFT adoption. CEP Discussion Papers (CEPDP0992.. Centre for Economic Performance, London School of Economics and Political Science, London, UK. Retrieved from http://eprints.lse.ac.uk/48906/

  • So, K. K., King, C., Sparks, B. A., & Wang, Y. (2016.. The role of customer engagement in building consumer loyalty to tourism brands. Journal of Travel Research, 55(1., 64–78. https://doi.org/10.1177/0047287514541008

  • Szekely, F., & Strebel, H. (2013.. Incremental, radical and game-changing : Strategic innovation for sustainability. Corporate Governance, 13(5., 467–481. https://doi.org/10.1108/CG-06-2013-0084

  • Tanwar, K., & Prasad, A. (2016.. The effect of employer brand dimensions on job satisfaction : Gender as a moderator. Management Decision, 54(4., 854–886. https://doi.org/10.1108/MD-08-2015-0343

  • Teo, T. S., Srivastava, S. C., & Jiang, L. (2008.. Trust and electronic government success : An empirical study. Journal of Management Information Systems, 25(3., 99–132. https://doi.org/10.2753/MIS0742-1222250303

  • Venkatesh, V., Morris, M. G., Davis, G. B., & Davis, F. D. (2003.. User acceptance of information technology : Toward a unified view. MIS Quarterly, 27(3., 425–478. https://doi.org/10.2307/30036540

  • Walter, J. M., & Peterson, J. M. (2016.. Strategic R&D and the innovation of products : Understanding the role of time preferences and product differentiation. Economics of Innovation and New Technology, 26(7., 575–595. https://doi.org/10.1080/10438599.2016.1249063

  • Wang, J. J., Li, J. J., & Chang, J. (2016.. Product co-development in an emerging market : The role of buyer-supplier compatibility and institutional environment. Journal of Operations Management, 46 (1., 69-83. https://doi.org/10.1016/j.jom.2016.07.002

  • Yeh, C.-H., Wang, Y.-S., & Yieh, K. (2016.. Predicting smartphone brand loyalty : Consumer value and consumer-brand identification perspectives. International Journal of Information Management, 36(3., 245-257. https://doi.org/10.1016/j.ijinfomgt.2015.11.013


Abstract Views: 199

PDF Views: 3




  • Product Innovation, Customer Satisfaction, and Brand Loyalty of Using Smartphones Among University Students : PLS – SEM Approach

Abstract Views: 199  |  PDF Views: 3

Authors

Shrikant Krupasindhu Panigrahi
College of Business, University of Buraimi, P.O Box 890, P.C. 512, Oman
Noor Azlinna Binti Azizan
College of Business, Prince Sultan University, Riyadh, Saudi Arabia
Ibrahim Rashid Al Shamsi
College of Business, University of Buraimi, P.O Box 890, P.C. 512, Oman

Abstract


This paper examined the impact of product innovation attributes (relative advantage, complexity, compatibility, trialability, and observability) on customer satisfaction and brand loyalty together with gender as a moderator between customer satisfaction and brand loyalty. Based on a sample of 193 university students using partial least square structural equation modeling (PLS-SEM) technique, relative advantage, complexity, compatibility, trialability, and observability were found to positively impact customer satisfaction. The results also demonstrated that product innovation attributes were the key predictors of customer satisfaction. The results revealed that loyal customers utilized the services of specific smartphones as per their preferences consistently. Additionally, the results illustrated that customer satisfaction significantly influenced brand loyalty. Further, the study also found that gender significantly moderated customer satisfaction and brand loyalty. As a practical implication, in the competitive market, the managers need to understand the requirements of the customers and add value to customers by providing innovative products. Innovation in a product improves customer satisfaction and commitment of customers towards a brand. Managers need to understand the requirement of the customers and create value accordingly. As a novelty, the study is a first of its kind to investigate the relationship between product innovation attributes, customer satisfaction, and brand loyalty with gender as a moderator.

Keywords


Product Innovation, Customer Satisfaction, Brand Loyalty, Gender, Smartphones.

Paper Submission Date : January 6, 2020; Paper Sent Back for Revision : June 12, 2020; Paper Acceptance Date : October 12, 2020.


References





DOI: https://doi.org/10.17010/ijom%2F2021%2Fv51%2Fi1%2F156931