Determining The Brand Loyalty of Bamboo Plywood Design of Thailand: Moderating Role of Sustainable Marketing
Determining The Brand Loyalty of Bamboo Plywood Design of Thailand: Moderating Role of Sustainable Marketing
Determining The Brand Loyalty of Bamboo Plywood Design of Thailand: Moderating Role of Sustainable Marketing
1,2
Kanchanaburi Rajabhat University, Thailand
3
Suan Sunandha Rajabhat University, Thailand
1*
[email protected], [email protected], [email protected]
Keywords: Innovative brand, Company goodwill, Brand uniqueness, Customer satisfaction, Bamboo
plywood Thailand.
ABSTRACT
The current study examined the role of innovative brand, company goodwill and brand uniqueness on customer
satisfaction and brand loyalty. The objective of this study is to identify the determinants of brand loyalty.
Consequently, the relationship between innovative brand, company goodwill, brand uniqueness, customer
satisfaction, sustainable marketing and brand loyalty were examined. Population of the study was the companies
related to the Bamboo plywood designing from Thailand. Respondents of the study was the employees of Bamboo
plywood designing companies. Data collection was carried out through questionnaire and simple random sampling
was carried out. Sample size of the study was 300 employees from Bamboo plywood designing companies. Results
of the study revealed that innovative brand, company goodwill, brand uniqueness, customer satisfaction and brand
loyalty have major role in brand loyalty. The determinants of brand loyalty are; innovative brand, company goodwill
and brand uniqueness. Sustainable marketing also has positive effect on brand loyalty. Therefore, practitioners
should promote brand loyalty in Bamboo plywood designing by promoting innovative brand, company goodwill,
brand uniqueness and customer satisfaction.
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DETERMINING THE BRAND LOYALTY OF BAMBOO PLYWOOD DESIGN OF THAILAND PJAEE, 17 (2) (2020)
INTRODUCTION
Brand loyalty is the major concern of companies as it has influence on the business
activities (Rahi, Yasin, & Alnaser, 2017). Brand loyalty is connected with the customers
of the company because loyalty is related to the customers. Loyalty of customers with the
brand is most important which has major role in business performance. To increase the
brand loyalty is the basic objective of various companies as it has influence on the
success of the business. It is important because market is full of various brands and
customers always have different options which has influence on business success.
Loyalty among the customers explained as the willingness of the people to purchase the
same brand again and again. As the market always have different brands belongs to the
different companies, however, to purchase the brand of a company, it must have a
considerable level of brand loyalty. Increase in the loyalty of people increases the
purchase of similar brand which is important to promote business performance. Literature
provides various evidences that loyalty is also the key of success because customer
loyalty forces the people to purchase the brand of a specific company. Therefore, the
promotion of brand requires high quality which is needed to generate brand loyalty.
Hence, to achieve the higher business performance, the customer loyalty has major
importance (Ahmed, Vveinhardt, Warraich, & Baloch, 2020; Fernandes Sampaio,
Hernández Mogollón, & de Ascensão Gouveia Rodrigues, 2020).
Brand loyalty is also important in Bamboo plywood designing. The companies working
in connection with Bamboo plywood required significant level of brand loyalty. Bamboo
plywood is increasing in the market of Thailand which has positive influence on the
business activities. Emergence of Bamboo plywood in Thailand has influence on the
market and its Bamboo plywood has several competitors. Therefore, to promote brand
loyalty in relation to Bamboo plywood is most important and it is the current need of
market. It is important to survive in the market by competing with the competitors. As
there are many forests in the Thailand, therefore, the wood market is quite famous and
has important role in Thailand. Due to the extensive availability of this work, the
competition is increasing in the market and require proper strategies to survive in the
market. Therefore, brand loyalty in business is most important to achieve (Chikazhe,
Chigunha, Dandira, Mandere, & Muchenje, 2020; Fernandes Sampaio et al., 2020; W.-K.
Liu, Lee, & Hung, 2017) which is also require in Bamboo plywood designing to archive
higher performance in the market.
The brand loyalty can be increased among the Bamboo plywood designing companies
through different ways. Companies are using several strategies to promote business
performance by increasing the brand loyalty. The brand loyalty among the Bamboo
plywood related companies can be increased with the help of increasing customer
satisfaction. As the innovation bring something new to the market and differentiate the
brand from different other companies’ brand. Innovation bring something new in the
market which has major importance to increase the level of satisfaction among
customers. Therefore, brand innovation is important to promote business through
customer satisfaction. As there is a relationship between brand innovation and customer
satisfaction (Chandran, Rangarai, & Parayitam, 2020; Supriyadi & Prajogo, 2020).
Furthermore, another importance factor which influence on customer satisfaction is
company goodwill. Goodwill of the company has vital role to influence on the business
activities which required to achieve for companies to get success in the competition. The
other important factor having influence on the business loyalty through customer
satisfaction is brand uniqueness. Uniqueness of the brand has the ability to influence
positively on business success and customer satisfaction. Increase in the customer
satisfaction is dependent on the brand unique features. Further, customer satisfaction has
influence on the brand loyalty which is proved by the literature (Hashem, Ali, & Allan,
2020; Ofosu-Boateng & Agyei, 2020; Rachmatiah, Hadjaat, & Achmad, 2020; Rahmat &
Marso, 2020). Number of studies available in the literature to examine brand loyalty,
however, the determinants of brand loyalty are not identified in the literature. Hence,
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LITERATURE REVIEW
Bamboo plywood is a non-timber forest product and can be used in place of
regular plywood. Bamboo plywood can be manufactured to follow either horizontal or
vertical grain making for a beautiful plywood interior. It can be used for interior walls,
countertops, cabinetry, or furniture. Therefore, Bamboo plywood is connected with the
development of homes, shops as well as market which has major importance. Majorly it
is based on to increase the beauty in houses, shop and markets. It has the ability to
increase the beauty which is the point of interest for the people. Bamboo plywood is
increasing in the market and this trend is also increasing among the people to increase the
beauty. It is also connected with the furniture products. The furniture product is also
important and widely used in whole world. The furniture products beauty can be
increased with the help of various designing. Bamboo plywood is a non-timber forest
product which has major importance among the various markets of furniture and
capturing the market share. In the recent decade, several studies are investigating about
the Bamboo plywood and found that it is one of the important role in the market (Li et al.,
2009; Qi, Xie, Huang, Yu, & Chen, 2014).
In the Thailand, the market of Bamboo plywood is also increasing which is capturing the
market share. In the furniture market, the products of Bamboo plywood are increasing,
and the interest of people is also increasing towards Bamboo plywood. The furniture
market of Thailand is also increasing due to the forests and having major role in the
country. This market is one of the most important market which has central importance to
the Thai economy. This industry is providing several benefits to the people as well as to
the nation. Because this industry is providing number of employment opportunities to the
people which is leading to the welfare of people. It has major role in the economic
activities of the people as the economic activities of people are increasing the financial
needs of people which is one of the major steps for the people welfare. Along with this,
this is one of the most important market which is providing them with rapid speed and
progress of this market is contributing to the further development activities. Therefore,
this industry has major importance for the business market, as the contribution of this
industry in the business market is increasing which has central importance to
development economic welfare of the country. Therefore, Bamboo plywood market is
emerging and growing with significant speed in the current market (Zhao, Yang, & Zhou,
2019; ZHOU, CHEN, ZHAO, & YANG, 2018).
The performance of Bamboo plywood can be further promoted with the help of various
activities. For instance, the promotion of brand loyalty is most important in this market.
Increase in the brand loyalty is most important as given in several previous studies (Z.
Liu, Huang, & Liang, 2019; Popp & Woratschek, 2017; Saragih et al., 2019). Brand
loyalty can be developed with the help of customer satisfaction. Higher customer
satisfaction level has the ability to promote business performance of this industry. Along
with this, the role of innovative brand is important to increase the customer satisfaction.
Additionally, company goodwill also has major importance in brand loyalty through
customer satisfaction. In addition to this, the role of brand uniqueness also has major
importance for customer satisfaction. Unique brand can increase the customer
satisfaction. Therefore, the current study examined the role of innovative brand, company
goodwill and brand uniqueness on customer satisfaction and brand loyalty. In addition to
these relationships, the role of customer satisfaction as mediating variables is also
highlighted in this study. Figure 1 shows the relationship between innovative brand,
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A brand is a product, service, as well as concept that is publicly eminent from other
products, services, or concepts, therefore, that it can be simply communicated and
frequently marketed. A brand name is the name of the typical product, service, or
concept. Branding is the procedure of creating as well as disseminating the brand name.
Each company has its own brand; however, the innovative brand has major importance
for the companies. Because it has vital importance for the companies. Brand must have
innovative features to attract the customers. Similar brand along with other companies
cannot make the difference. It has the potential to enhance the company performance.
Innovative brand always has different features which attract the customers and increase
the performance of the company. As it is also given in several previous studies that
innovative brand has vital importance for the companies (Chen, Tsai, & Ke, 2019;
Фурсова & Давыдова, 2018). Generally, brand has positive role in satisfaction of
customers. Increase in brand innovativeness increases the customer satisfaction. In any
business activity, customer satisfaction is the major element which shows positive role in
business of the company (Lam, Shankar, Erramilli, & Murthy, 2004; Park et al., 2019;
Popp & Woratschek, 2017). Customer satisfaction is one of the widely used approach
among the company to enhance the business activities. Furthermore, innovative band also
has major importance for the brand loyalty. Generally, it has the ability to increase brand
loyalty among the people. It has major importance because brand loyalty has the potential
to enhance the business performance which is most important for the survival of business
in the competitive market.
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DETERMINING THE BRAND LOYALTY OF BAMBOO PLYWOOD DESIGN OF THAILAND PJAEE, 17 (2) (2020)
asset that is related with the purchase of one firm by another. It also has relationship with
the customers who purchase the products from the company. The value of a corporation's
brand name, solid customer base, relationship with customer, good relationship among
the employees, and proprietary technology signify some reasons why goodwill exists.
This goodwill in the market has vital importance for the business activities because it has
the ability to promote business activities. It is also important because it develop the
positive image among the people which finally lead to the business success. Therefore,
goodwill has major importance for the business activities (Danko et al., 2018; Gonzalez,
2007). It has major relationship with the customer satisfaction. To enhance the customer
satisfaction, a company must build a significant level of goodwill as it is address by
previous studies that goodwill has vital importance among the business activities.
Furthermore, it also has direct effect on the brand loyalty. Brand loyalty can be increased
with the help of better goodwill. The companies having better level of goodwill in the
market generally have better brand loyalty as compared to those brands from the
companies having low level of goodwill. That is the reason the importance of goodwill is
highlighted by several previous studies in the literature (Kopalle & Assunção, 2000).
Furthermore, the third important factor which has influence on brand loyalty and
customer satisfaction is brand uniqueness. Uniqueness in the brand indicates that the
brand must have any feature which do not have by another brand. The similar features do
not attract the people for specific brand. Generally, more attractive brands always have
something unique which has importance for the people and customers want to purchase
the unique brand. Customer always want some thing unique in the product or services
which has the ability to influence the satisfaction of customers and ultimately has positive
role in business success. Previous studies also show the branding is the major part of any
business industry (Arkhipova, Vladykina, Donets, Osipova, & Uryupina, 2020; Lowry,
Vance, Moody, Beckman, & Read, 2008; Tumasjan, Kunze, Bruch, & Welpe, 2020)
which require something unique to attract the customers. Therefore, the discussion shows
that uniqueness in the brand has the ability to influence the customer satisfaction. To
attain certain level of customer satisfaction, the role of brand uniqueness has significant
role. It has major role to increase the customer satisfaction. Furthermore, brand
uniqueness also has major importance for the brand loyalty. Increase in brand uniqueness
increases the brand loyalty, therefore, to enhance the brand loyalty, the role of brand
uniqueness is most important. The area of customer satisfaction is the major part of
companies (Zablah, Carlson, Donavan, Maxham III, & Brown, 2016).
The above section shows that innovative brand has vital role in customer satisfaction and
has the ability to promote the level of satisfaction among people. It is also discussed that
goodwill playing major role for the success as well as satisfaction of people. Finally, the
previous studies and above discussion also shows that uniqueness of the brand playing
key role to enhance business performance by increasing the customer satisfaction.
Furthermore, it is important to discuss that customer satisfaction has major importance
for brand loyalty. Increase in customer satisfaction increase the brand loyalty. Above
section shows that innovative brand, goodwill and brand uniqueness has positive role in
customer satisfaction, additionally, customer satisfaction increases the brand loyalty.
Customer satisfaction is the most vital part of any brand which has influence on the
satisfaction level of people. Customer purchase the brand of the company if they are
satisfied with the company. The unsatisfied customer cannot purchase the brand of a
concerned company. In this direction, the role of customer satisfaction in branding is
most important which reflected in the literature (Adapa & Roy, 2017; Wong, Tong, &
Wong, 2017). Therefore, by following the literature, it is evident that customer
satisfaction has vital importance for the promotion of brand loyalty. Among various
markets such as Bamboo plywood the role of branding is vital. To enhance the brand
loyalty, the customer satisfaction is vital. Along with this, in the Bamboo
plywood market, the management should promote business activities with the help of
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DETERMINING THE BRAND LOYALTY OF BAMBOO PLYWOOD DESIGN OF THAILAND PJAEE, 17 (2) (2020)
Hence, the above discussion shows that innovative brand has positive role in customer
satisfaction. Goodwill also has positive role in customer satisfaction. Along with this,
brand uniqueness has positive role to promote customer satisfaction. Finally, customer
satisfaction has positive influence on brand loyalty. Additionally, marketing activities has
vital role among the business organizations. Most of the companies use various
marketing activities to promote business performance. Especially, to develop brand
loyalty among the customers require marketing is most important. Sustainable marketing
practices are required to enhance the brand loyalty. As given in previous studies that
sustainable marketing activities are most important (Minton, Lee, Orth, Kim, & Kahle,
2012). In this study, sustainable marketing has influence on the relationship of customer
satisfaction and brand loyalty. Therefore, the above discussion lead to the following
hypotheses;
RESEARCH METHODOLOGY
The current study examined the relationship between innovative brand, company
goodwill, brand uniqueness, customer satisfaction and brand loyalty. To examine the
relationship among variables, the quantitative research approach is always suitable and
recommended in the several studies (Hameed, Nisar, & Wu; Westerman, 2006). This
approach is most suitable to examine the effect of one variable on others. This study also
investigated the effect of innovative brand, company goodwill, brand uniqueness and
customer satisfaction on brand loyalty. Furthermore, the cross-sectional research design
is also suitable in this study which is followed for data collection.
Population of the study was the companies related to the Bamboo plywood designing
from Thailand. Respondents of the study was the employees of Bamboo plywood
designing companies. Questionnaires was used for data collection in which five-point
Likert scale was employed. 300 questionnaires were distributed among the Bamboo
plywood designing companies of Thailand. Among the 300 distributed questionnaires,
230 were returned and used for data analysis. Furthermore, the current study used simple
random sampling technique to collect the data. Finally, this study analyzed the data by
using Partial Least Square (PLS). Data screening is given in Table 1.
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DETERMINING THE BRAND LOYALTY OF BAMBOO PLYWOOD DESIGN OF THAILAND PJAEE, 17 (2) (2020)
FINDINGS
Findings of the study approached with the help of PLS. Factor loading was examined by
using the confirmatory factor analysis. The first step of PLS is given in Figure 2 in which
factor loadings are given. Factor loadings are also given in Table 2. It is found that all the
factor loadings are above 0.5. additionally, discriminant validity is examined by using the
cross-loadings given in Table 4.
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DETERMINING THE BRAND LOYALTY OF BAMBOO PLYWOOD DESIGN OF THAILAND PJAEE, 17 (2) (2020)
Table 3 shows the values of composite reliability (CR). It is found that innovative brand,
company goodwill, brand uniqueness, customer satisfaction, sustainable marketing and
brand loyalty have CR above 0.7. Furthermore, all the variables have average variance
extracted (AVE) above 0.5. Thus, both CR and AVE are above the minimum value.
Figure 3 shows the relationship between variables and results are given in Table 5 and
Table 6. It is found that brand uniqueness has positive effect on brand loyalty. Company
goodwill has positive effect on brand loyalty. It also has positive effect on customer
satisfaction. Customer satisfaction has positive effect on brand loyalty. Additionally,
innovative brand has positive effect on customer satisfaction. Sustainable marketing has
positive effect on brand loyalty. Additionally, three mediation effect are examined in this
study but only one is significant as given in Table 6. Moderation effect of sustainable
marketing is positive which is strengthening the relationship.
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DETERMINING THE BRAND LOYALTY OF BAMBOO PLYWOOD DESIGN OF THAILAND PJAEE, 17 (2) (2020)
Table 4: Cross-Loadings
Brand Brand Company Customer Innovative Sustainable
Loyalty Uniqueness Goodwill Satisfaction Brand Marketing
BL1 0.934 0.519 0.845 0.193 0.559 0.51
BL2 0.792 0.767 0.499 0.11 0.569 0.526
BL3 0.879 0.691 0.434 0.172 0.569 0.548
BL4 0.863 0.635 0.368 0.044 0.464 0.431
BU1 0.759 0.827 0.549 0.112 0.597 0.535
BU2 0.67 0.72 0.455 0.166 0.566 0.537
BU3 0.705 0.765 0.449 -0.002 0.575 0.5
CG1 0.748 0.563 0.889 0.184 0.597 0.534
CG2 0.361 0.375 0.546 0.105 0.362 0.273
CG3 0.335 0.326 0.574 0.249 0.323 0.312
CS1 0.179 0.121 0.242 0.863 0.174 0.178
CS2 0.14 0.093 0.198 0.766 0.093 0.093
CS3 0.076 0.031 0.091 0.668 0.008 0.022
IB1 0.031 0.006 0.095 0.099 0.817 0.07
IB2 -0.014 -0.054 0.047 0.047 0.182 0.077
IB3 0.061 0.037 0.093 0.071 0.259 0.154
IB4 0.096 0.055 0.112 0.111 0.289 0.128
IB5 0.608 0.558 0.512 0.024 0.808 0.807
IB6 0.706 0.738 0.591 0.182 0.863 0.784
SM1 0.123 0.075 0.124 0.559 0.037 0.853
SM2 -0.01 -0.013 -0.038 0.519 0.009 0.884
SM3 0.577 0.511 0.464 0.007 0.76 0.819
SM4 0.583 0.604 0.461 0.132 0.772 0.818
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DETERMINING THE BRAND LOYALTY OF BAMBOO PLYWOOD DESIGN OF THAILAND PJAEE, 17 (2) (2020)
CONCLUSION
The objective of this study was to identify the determinants of brand loyalty.
Consequently, the relationship between innovative brand, company goodwill, brand
uniqueness, customer satisfaction and brand loyalty were examined. It is found that
innovative brand has positive effect on brand loyalty through customer satisfaction.
Increase in innovation in brand increases the brand loyalty. Company goodwill also has
positive effect on brand loyalty which shows that if a company have better goodwill, it is
the better chances to enhance the brand loyalty, however, if the company have low level
of goodwill, it have a lower chance to have brand loyalty among the customers.
Furthermore, brand uniqueness also has major influence on brand loyalty. Additionally,
innovative brand and company goodwill have positive influence on customer satisfaction
which further increases the brand loyalty. Therefore, results of the study revealed that
innovative brand, company goodwill, brand uniqueness, customer satisfaction and brand
loyalty have major role in brand loyalty. Hence, the determinants of brand loyalty are;
innovative brand, company goodwill and brand uniqueness. Finally, it is found that
sustainable marketing also has important role to promote the relationship between
customer satisfaction and brand loyalty. It has the ability to strengthen the positive
relationship between customer satisfaction and brand loyalty.
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83-99.
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DETERMINING THE BRAND LOYALTY OF BAMBOO PLYWOOD DESIGN OF THAILAND PJAEE, 17 (2) (2020)
417