No abstract

PurposeThe purpose of this paper is to explore the relationship between the customer's risk aversion and its relationship with brand loyalty and to test empirically whether this relationship is mediated by brand trust and brand affect.Design/methodology/approachA randomly selected sample of Austrian mobile phone users was drawn. Their risk aversion, two forms of loyalty (attitudinal and repurchase loyalty), brand trust and brand affect have been measured with existing and tested scales. The hypothesized model has been tested using PLS (Partial least squares).FindingsCustomer's risk aversion is significantly related to the two forms of loyalty (attitudinal loyalty and brand loyalty). When brand affect and brand trust are introduced into the model, the previously highly significant relationship between domain‐specific risk aversion and attitudinal loyalty becomes insignificant and the risk aversion‐repurchase relationship becomes much weaker, while risk aversion strongly influences brand trust and brand affect.Research limitations/implicationsThe findings are limited to mobile phone users. The generalisation of the results could be extended by broadening the list of products, for example with other durable products and services in which brand affect and brand trust may be even more important in developing brand loyalty.Practical implicationsThis paper explains why certain customers have more trust and experience more affect than others and how this is related to loyalty. Hence, marketers can increase brand loyalty by targeting more risk aversive customers.Originality/valueFrom a theoretical point of view the results of this study illuminate the relationship between enduring individual differences and important brand related constructs. From a practical point of view, they explain why certain customers have more trust and experience more affect than others. It is hypothesized and demonstrated empirically that risk aversion is also related to loyalty via brand trust and brand affect.

Purpose -The purpose of this paper is to explore the relationship among two personality traits (extraversion and openness), hedonic value, brand affect and loyalty. It argues that individual differences account for differences in the values sought by the consumer and in the formation of brand affect and loyalty. Design/methodology/approach -Two samples are drawn (running shoes and mobile phone users) and the effect of personality traits on the other constructs have been tested using the Partial Least Squares approach (PLS) to structural equation modeling. Findings -It was found that extraversion and openness are positively related to hedonic product value and that the personality traits directly (openness) and indirectly (extraversion, via hedonic value) influence brand affect which in turn drives attitudinal and purchase loyalty.Research limitations/implications -The paper introduces personality as determinants of perceived value and brand affect. Future studies should aim at including the other personality traits of the Big-Five (Neuroticism, Agreeableness, and Conscientiousness) as possible determinants and utilitarian value as dependent variables. Practical implications -Combined with lifestyle segmentation approaches, personality variables can be useful to determine which market segments seek hedonic values and which tend more to experience high levels of brand affect, which in turn leads to higher loyalty. The results suggest that customers who score high on extraversion and openness respond stronger to affective stimuli. As a consequence, these findings are of relevance to market segmentation and targeting. Originality/value -Affective responses to brands are of central importance to brand management as they strongly drive brand loyalty. In this study we investigate the role of two personality traits (extraversion and openness) as antecedents of hedonic value sought by the consumer and brand affect, which have been neglected so far.

No abstract

PurposeThis study seeks to investigate the role of internet trust as a specific form of technology trust in the context of internet banking. Furthermore, the integration of propensity to trust within the hierarchical structure of personality and its applicability to technological systems are investigated.Design/methodology/approachThe approach takes the form of an empirical study with 381 bank customers in Austria (adopters and non‐adopters) and the use of a basic model of the adoption of internet banking with structural equation modelling (SEM).FindingsThe results confirm the influence of internet trust on risk perception and consumer attitudes towards internet banking. Propensity to trust is a determinant not only for interpersonal relationships but also for trust in technological systems.Research limitations/implicationsThis is not a representative study. Future research is encouraged to systematically investigate further facets of the personality structure in trust and adoption research, as well as to test interaction effects of psychological determinants (from the study) and external stimuli (web site characteristics).Practical implicationsMaking the internet banking interface for the customer more attractive and easier to navigate is not enough to increase the adoption rate of internet banking. Trust‐creating activities to increase internet trust and to diminish perceived risk must be continuously pursued. Propensity to trust is an important determinant in the fruitfulness of these actions.Originality/valueThe paper presents the conceptualization of internet trust as a specific form of technology trust, and its pivotal role in the adoption process of internet banking, together with the extension of the propensity to trust concept to technological systems.