Purpose
The concept of customer engagement has emerged as an important indicator of customer- brand relationship strength. However, limited research exists to provide insight into how customer engagement enhances the effectiveness of building such a relationship in retail services. This study extends the current understanding of customer engagement through examination of its role in the development of customer-brand relationship quality.
Design/methodology/approach
To test the hypotheses contained in the proposed conceptual model, we used a quantitative method that included a survey questionnaire to measure customers’ perceptions with respect to the constructs of interest. Specifically, two studies were conducted in Australia. Study 1 was intended to empirically test the theoretical relationships among the constructs, while Study 2 aimed to replicate the proposed model with a different sample to enhance external validity.
Findings
In two separate studies, the results of a structural model show that the emerging concept of customer engagement plays a significant role in building customer-brand relationship quality and, subsequently, customer loyalty toward the retail brand.
Research limitations/implications
This study focuses on retail store brands only and used a cross-sectional design, which does not involve examination of cause and effect relationships.
Practical implications
From a practical point of view, the findings suggest that marketers should actively embrace strategies to foster customer engagement to enhance brand relationship quality, and ultimately, forming a loyal customer-brand relationship.
Originality/value
The study makes an original contribution to the retail services literature by empirically demonstrating the relevance of customer engagement in both customer relationship management as well as brand management.