Purpose: In emerging devices (smartphones, tablets, and notebooks) markets, increasing brand loyalty is critical for suppliers. Generation Y (Gen Y) is the first global target group and the best customer segment for emerging devices. The purpose of this paper is to propose a conceptual framework that assesses the brand value of emerging devices as perceived by Gen Y-ers, identify the components that contribute to its formulation, and investigate its relative influence on the development of brand relationships, represented by satisfaction and brand trust, and on brand loyalty.
Design/methodology/approach: A mall-intercept survey of a sample of 1,109 Gen Y consumers was implemented using a structured questionnaire with established scales. Data were analyzed with PLS-PM, a SEM methodology.
Findings: Results show that brand satisfaction and reliability are the main drivers of Gen Y-ers’ brand loyalty followed by brand intentions, while both trust dimensions (reliability and intentions) and satisfaction partially mediate the relationship between brand value and brand loyalty. Brand value is also directly related to brand loyalty irrespective of consumer-brand relationship quality. Also, functional value-quality and emotional value are shown to be the most important components for brand value formulation followed by functional value-price and brand reputation (BRP) whereas symbolic value is the least important.
Research limitations/implications: The sample is country specific and this may affect generalizability of findings. Also, the cross-sectional design adopted does not reflect temporal changes.
Practical implications: Emerging devices should provide customers both functional (e.g. advanced features, attractive style, quality, durability) and emotional (entertainment, communication) benefits in order to increase brand loyalty. Furthermore, firms should manage their BRP since it can affect significantly brand value, customer-brand relationship quality, and brand loyalty.
Originality/value: The model developed provides a useful guideline for marketers in identifying the most important brand benefits for Gen Y-ers for developing relationships and stay loyal to a brand.