Experiential marketing, brand image and brand loyalty: a case study of Starbucks

Abstract

PurposeDue to the internationalization that has occurred during the past few decades, the living conditions of people around the island of Taiwan have gradually changed, especially their eating habits. Among them, the growth of the coffee market has been very significant. To date, many studies have been devoted to exploring the application of experiential marketing (EM) in a variety of industries. Many experimental results have proven that a positive brand image (BI) will lead to brand loyalty (BL). In services, the best at the practice of EM is Starbucks. Therefore, this paper aims to assess the role of BI in EM and BL for Taiwan’s most popular brand, Starbucks.Design/methodology/approachIn the formal test stage, 225 questionnaires were given to respondents in Starbucks located in four districts (Da-An, Zhong-Zheng, Nei-Hu and Xi-Yin), which have many more stores than the other districts in Taipei City. Two hundred valid samples were obtained. This study used structural equation modelling (SEM) to validate the relationships among EM, BI and BL.FindingsThe findings show that EM cannot directly impact BL as expected, as it needs BI to do so. In other words, BI acts a complete mediator in the relationship between EM and BL.Practical implicationsIn this study, BI acts a complete mediator. This means that if Starbucks expects to improve consumers’ loyalty to the brand, it only needs to rely on the good overall image of the brand. Facing such business style homogeneity, people need some available information to help them to execute their following purchase decisions. Though Starbucks can bring me to its locations, meaning that Starbucks has made its first move in comparison with other competitors, I still decide to leave without any impressive image of this brand. Accordingly, we can refer to BI as a powerful endorsement of a qualified relationship between EM and BL.Originality/valueCompared to past studies on Taiwan’s/Taipei’s Starbucks, this paper simultaneously inputs EM, BI and BL into the model. Though Starbucks has achieved great EM success, this study finds that EM is no longer exclusive to BL, and BI is a powerful endorsement of a qualified relationship between EM and BL. For Starbucks, it must strengthen consumer perceptions of its BI to create customer loyalty.

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