2012 Cambridge Business & Economics Conference
ISBN : 9780974211428
Rozita Naina Mohamed
Faculty Business Management, Universiti Teknologi Mara, Malaysia
60-0129741676; azarozi_naina@yahoo.com
Rosidah Musa
Faculty Business Management, Universiti Teknologi Mara, Malaysia
60-0192980780; rosidahm@salam.itm.edu.my
Disentangle the Effects of Brand Experience (BE) on Trust, Commitment
and Resonance: Evidence from Popular Fast Food Chain Restaurants in
Malaysia: Using Structural Equation Modelling Approach
ABSTRACT
In today’s overcrowded and highly competitive marketplace, ‘brand experience’ (BE) can be
the most privileged tool for differentiation. Every touch points of brand contacts and
interactions will contribute to the overall perception of the brand. Undoubtedly, it is critical to
gain insights into the key drivers of ‘brand experience’ and subsequently ascertain its
outcomes in order to design effective marketing strategies for market growth and perhaps
business sustainability. This paper aims to address the gap by empirically investigating the
effect of brand experience on trust, commitment and customer resonance. A hypothesized
model which integrates four antecedents of brand experience (product quality, service
quality, store image, promotional activities credibility,), trust, commitment and resonance
was developed, analyzed and tested rigorously using structural equation modeling procedure.
The model was tested using 450 usable questionnaires of adult respondents who reside in
chosen urban areas in Malaysia. The study has used a survey approach with self-administered
questionnaire distributed in restaurants intercept; offices and home as in drop off and collect
technique. The findings reveal that BE has a positive significant effects on trust and
resonance but not commitment. These findings have important implications for future
research directions and food service marketers.
Keywords: brand experience, trust, commitment, resonance, fast food chain restaurants,
structural equation modeling.
ACKNOWLEDGEMENT
We are heartily thankful to our colleagues who have made the completion of this research
paper. Lastly, we offer our regards and blessings to all of those who supported us in any
respect during the completion of the paper.
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1. INTRODUCTION
In today’s overcrowded and highly competitive marketplace, ‘brand experience’ (BE) can
be the most privileged tool for differentiation. Every touch points of brand contacts and
interactions will contribute to the overall perception of the brand. Undoubtedly, it is critical to
gain insights into the key drivers of ‘brand experience’ and subsequently ascertain its
outcomes in order to design effective marketing strategies for market growth and perhaps
business sustainability. Understanding on how strong brand survive and why brand
experience develops that will leads to customers resonance remains one of the key
challenging and critical management issues today (Schmitt, 2009). The concept of brand
experience captures the very essence of branding much more than analytically and
cognitively oriented brand concepts. Failure to develop long term psychological attachment
among existing and potential customers of this industry may require the business to bear the
increased costs associated with managing the brand as an assets that drive every strategic and
investments decision (Davis and Dunn, 2002). In view of the high investment in brand and in
promoting local and the international organization to invest their franchise businesses in
Malaysia and its ubiquity, the success of such investments and its effectiveness and efficiency
is important for both research and in practice. Malaysians' food and beverage expenditure
represents roughly 25% of total consumer spending, and is expected to see 131% growth by
2015 as disposable incomes rise (Euromonitor, 2010). The increasing popularity of
Malaysian consumer tastes and trends develop in much the same way as the rest of the
developing world, fast-paced lifestyles, with the number of single person households and
young people on the rise, the demand for foods outside the home has intensified and has been
accommodated by a growing foodservice industry especially fast food industry. On average,
Malaysian households spend roughly 24% of household income on food consumptions; there
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is indeed a justifiable need to research the phenomena of consumer’s motivational factors
influencing their consumption experience decisions to engage in chained fast food products.
All of these issues have added to the significance for such a study to be carried out.
Consumers experience a brand and whether brand experience are simply an
epiphenomenon or whether influence consumer behavior which effects on trust, commitment
and resonance and how to measure brand experience prompted to develop and tested the
brand experience model empirically. As the phenomenon is new, very little literature
existed. To fill up the gaps, this study is conducted to determine the perception consumers
have and how well the four measures (best predictor) of antecedents influence of brand
experience (product quality, service quality, store image, promotional activities credibility)
predict brand experience subsequently its affect on trust, commitment and resonance. It is
vital to explore the antecedents that evoke brand experience (Schmitt, 2009).
2. LITERATURE REVIEW AND HYPOTHESES DEVELOPMENT
There are several theories of Branding success measures. For the development of the
conceptual framework, the authors have incorporated the most commonly referred theories,
SOR-Stimulus-Organism-Response, from Mehrabian Russel Theory (Mehrabian and Russel,
1974), Consumption Experience Theory, Consumer Behavior Theory (Holbrook and
Hirschman, 1982; Brakus, Schmitt and Zarantonello, 2009) and Customer-Based Brand
Equity Model and Pyramid (CBBEP) (Aaker, 1991: Keller, 2003). The consumption
experience may be defined as a phenomenon that involves the consumer’s subjective
evaluation of the cognitive, affective and relational interaction with the items consumed
(Schmitt, 2009). Consumer and marketing research has shown that experiences occur when
consumers search for products, shop for them, received service and consume them (Brakus et
al, 2009).
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A review of the extant literature has revealed that a substantial amount of consumer’s
consumption experience research has been conducted since it emerged as a legitimate field
of study in the 1970’s. Several theories which try to identify the factors contributing to
consumer consumption experience behavior have been developed and tested. So far,
although many competing theories and approaches to understanding brand experience have
been proposed, the most promising approach appears to be the Mehrabian Russel Paradigm.
Generally, this approach views consumer’s consumption experience response behavior as
the degree to which a product or service provides a pleasurable level of consumption-related
fulfillment (Mehrabian and Russell, 1974). Mehrabian and Russell (1974) is one of the
pioneering studies that looked into the cognitive processes underlying consumer response.
Mehrabian and Russell (1974), MRP model portrays three interacting constructs that play a
central role, SOR namely: Stimuli (Antecedents Influence), Organism (Brand Experience,
Trust and Commitment) and Response (Resonance). Following this work, a substantial
body of research effort has been devoted to testing and extending this model.
Antecedents Influence of Brand Experience
“Experience” is the reality check that sets the limit between what the Brand is saying or
promising (antecedents), who the brand is, what is the brand is really delivering (brand
experience) and what is the brand achievement (resonance).
Therefore, identifying the
antecedents influence of brand experience (i.e. product quality, service quality, store image,
promotional activities credibility) and underlying dimensions of brand experience and
develop a dimension that can measure the strength with which a brand evokes each
experience dimension are the exact answers to it. One important function of brand names is to
give consumers information about product quality. Consequently, the absence of brand names
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often results in the absence of information about quality. (Kotler and Armstrong, 2006),
define product as anything that can be offered to a market for attention, acquisition, use or
consumption that might satisfy a want and need. Product quality, PQ can be conceptualized
as the meeting or exceeding consumer’s expectations whereby if just assumes that
conforming to specifications is not adequate. However, it is also concerned with what the
product means to the consumer. Therefore, based on previous studies (Jang and Namkung,
2008), it is expected that product quality has a positive effect on consumers’ brand
experience toward their fast food brand.
H1: Product quality has significant positive effect on brand experience towards fast food
brand.
Service quality, SQ is one of the most investigated constructs in the history of marketing
scholarship and it is clearly the most investigated constructs in the field of services
marketing. According to Zeithaml,2000, recognized attitude proposition as the most
comprehensive evaluators of service quality. Even though, the service quality as attitude
proposition has not been subjected to much empirical and conceptual debate, the
conventional wisdom is that the overall evaluative nature of service quality makes it an
attitude or attitude –like constructs (Jang and Namkung, 2008). The importance of fast food
service quality is, in part, driven by research that associates service quality with brand
experience. Therefore it is hypothesize that:
H2: Service quality has significant positive effect on brand experience towards fast food
brand.
In creating such store image, firms typically establish information cues about the brand.
These cues is often semiotic in nature, that is to say, their meanings are embedded in various
signs and symbols. Consumer interprets these cues both cognitively and emotionally and
from them derive some feeling for the value of the brand experience. The cues act as
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‘behavior triggering devices” and are integrated into the design, layout, ambience, décor of
the brand environment. Research into retailing environments suggest that the following
features can affect consumers’ purchasing behavior: store image, store layout and music
lighting. In this research context, store image refer to the atmosphere of the restaurant, layout
and physical facilities as the main attributes. Store image is subjective feelings that all the
aspect of the environment create in the consumer. Therefore, we propose the following
hypothesis:
H3: Store image has significant positive effect on brand experience towards fast food brand.
Promotional activities credibility, PROMAC as a part of marketing comm., can be defined by
which firms attempt to inform, persuade, incite and remind consumers directly or indirectly
about the brands they sell (Kotler, 2006). Promotions represent the voice of a brand and the
means by which companies can establish a dialogue with consumers concerning their product
offerings, detailed product information or even ignore the product all together to address
other issues. Hence, associate a brand with a specific person, place, experience or thing. In
these and other ways, promotional activities allow marketers to transcend the physical nature
of their products or their technical specifications of their services to imbue products and
services with additional meaning and value. In doing so, it can contribute to greater brand
experience and sustained consumer loyalty. In this context, advertising, sales promotion and
event may influence what consumers think about products, what emotions they experience in
purchasing and using them, and what behaviors they perform, including purchasing in
particular stores and specific brands. In this study, it is also expected that promotional
activities credibility is significant positive effect with brand experience.
H4: Promotional activities credibility has significant positive effect on brand experience
towards fast food brand.
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Brand Experience
Brand experience is conceptualized as an actual sensations, feelings, cognition and behavioral
responses towards the brand (Brakus et al, 2009). The development of brand experience in
accordance with the mission of food sector policy is to develop Malaysia as a leader in food
service industry in this region. This objective, however, would be thwarted if there is no
coherent monitoring and performance assessment of government and private agencies in the
fast food industry. This concern is vital and should not be taken lightly. Moreover, branding
in fast food is growing rapidly and there are possible changes to the factors that influence
consumption. Consumption experiences are multidimensional and include hedonic
dimensions, such as feelings, fantasies and fun (Holbrook and Hirschman, 1982). (Schmitt,
2009) experiential marketing concept also adds to the traditional view of the branding
concepts. He explicitly states how the brand as an identifier has evolved to become a provider
of experience. The experiential marketing approach views brands as an integrated holistic
experience, which is possible to create through nurturing sensory, affective and creative
relations, as well as associating a lifestyle with the brand. In summary, experiences arise in a
variety of settings where experiences occur directly and indirectly during and after the
consumption for example when consumers shop, buy and consumed products. Therefore,
building upon the above suggestions and arguments, it is possible to suggest that brand
experience have positive relationship with trust and commitment that lead to resonance
(active loyalty). The hypothesizes to capture these associations are formally stated as follows:
H5: In the fast food consumption experience, brand experience has positive relationship with
trust.
H6 In the fast food consumption experience, brand experience has positive relationship with
commitment.
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H7: In the fast food consumption experience, brand experience has positive relationship with
resonance.
Resonance
Resonance (RSN) is characterized by strong connections between consumer and the brand.
Resonance refers to the nature of the ultimate relationship and the extent to which customers
feel they are ‘in sync’ with the brand (Keller, 2003). Brands with strong resonance benefit
from increase customer active loyalty and decreased vulnerability to competitive marketing
actions. In the CBBE model, resonance, occurs when it completely reflects a harmonious
relationship between customers and the brand. With true brand resonance, customers have a
high degree of loyalty marked by a close relationship with the brand such that customers
actively seek means to interact with the brand and share their experiences with others. The
challenge is to ensure the customer has the right experiences to create the right brand
resonance (Keller, 2003). Consistent with (Brakus et al. 2009: Schmitt, 2009), this study
proposes to conceptualize the effect of multi-sensory stimuli and emotive brand experience
related to trust and resonance. Considering brand equity as a relational market-based asset
implies that building and maintaining trust is at the core of brand equity because it is a key
characteristic of any successful long-term relationship (Aaker, 1991: Cronin and Taylor,
1992: Keller and Lehman, 2001). Taking into account the conceptual connections of
relationship aspects and the notion of loyalty (Fournier and Yao, 1997), the prevailing idea in
these studies (Chaudhuri and Hoolbrook, 2001; Delgado et al., 2003; Garbarino and Johnson,
1999; Lau and Lee, 1999) is that trust is the cardinal driver of loyalty because it creates
exchange relationship that are highly valued. In this context, active loyalty does exclusively
focus on repeated purchases and the focus on attachment behaviour would otherwise not
provide an adequate basis for a complete understanding of the brand-consumer relationship.
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Consequently, active loyalty underlies the ongoing process of continuing and maintain a
valued an important relationship that have been created by trust and commitment (Chaudhuri
and Hoolbrook, 2001; Garbarino and Johnson, 1999). Finally two of the characteristic of
brands with highest levels of equity (resonance) are that consumers are very loyal (active
loyalty) and attach to the brand. In fact, active loyalty is the main dimension to resonance
because it is considered to be the path that leads to certain marketing advantages and
outcomes, which have been closely associated with brand equity (Delgado-Ballester and
Munuera-Aleman, 2005; Aaker, 1991; Keller, 2003; Bello and Holbrook, 1995). Hence,
brand resonance is especially capable of building deep attachments and evoking strong
emotion (Keller, 2003; Escalas 1996). Emotions are known to influence consumer attitudes
(Edell and Burke 1987). Accordingly, it is hypothesized that the effects that brand experience
and resonance may have on attitude and emotions will be mediated by the trust and
commitment that consumers experience. Therefore, researcher proposes other hypotheses
describing the relationship between trust, commitment and resonance:
H8: In the fast food consumption experience, trust is positively related to commitment.
H9: In the fast food consumption experience, trust is positively related to resonance.
H10: In the fast food consumption experience, commitment is positively related to resonance.
The conceptual framework depicts the hypothesized relationships among variables are
constructed in a path diagram format
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Figure 1: A Conceptual Framework
PRODUCT
QUALITY
TRUST
H1
SERVICE
QUALITY
STORE
IMAGE
H2
H9
H5
H8
BRAND
EXPERIENCE
H3
H4
RESONANCE
H7
H6
H10
COMMITMENT
PROMOTIONAL
ACTIVTITIES
CREDIBILITY
3. RESEARCH METHODOLOGY AND DATA ANALYSIS
The data for this study were collected in urban Malaysia by employing two versions (Malay
and English language) of structured questionnaire. Prior to that, the serial series of in-depth
interviews of open ended questions and focus group interviews with the operators and adults
customer’s with respect to one particular fast food brand (that they purchased within the one
month prior to data collection). As no sampling frame is available, probability sampling was
ruled out. The sample is restricted to adults’ customers from the age of 16 and above due to
the consumers’ psychological attachments to brand names. 1200 self administered
questionnaires were distributed by researcher based on quota sampling using drop off and
collect techniques (mall/restaurants intercept, in-offices and in-home). Selected customers
who were visiting during breakfast, lunch and dinner also have been notifying.
The scales utilized in this study are: semantic differential scale (7-point scale), Likert scale
(7-point scale: 1 = strongly disagree to 7 = strongly agree) and dichotomous scales. Due to
missing answers and not the targeted respondents, feedback from only 450 respondents,
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representing a response rate of 38%, was included in data analysis using quota sampling
according to gender and ethnic group. It is considered to be high to represent of the
population studied as (Pallant, 2007), indicate that an analysis should obtain at least 30
percent responses.
The analysis were conducted through firstly, exploratory factor analysis and secondly,
confirmatory factor analysis
Consequently, the sequence of analysis took the following
order: firstly, exploratory factor analysis (EFA) was performed on each measurement model
to assess uni-dimensionality in terms of the parameter estimates, the statistical significance of
the parameter estimates and overall fit.
Upon inspecting the results, at this point the
researcher then decided whether to retain or delete any ill-fitting item. Secondly, CFA was
performed on those measurement models that were comprised of purified measures derived
from the first step. The maximum likelihood was used as the estimation method for the
analysis of this study. Indices such as Chi-square (χ²), ratio of Chi-square to degrees of
freedom, root mean square error of approximation (RMSEA), goodness of fit index (GFI),
normed fit index (NFI), and comparative fit index (CFI) were adopted for model fit criteria.
The Structure equation modelling (SEM) was conducted after CFA to examine the
relationships among the antecedents influence of brand experience, brand experience, trust,
commitment and resonance. Finally, all pertinent results on the measurement models were
reported (Refer to Table 3).
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4. RESULTS
Profile of Respondents
Two demographic variables have been identified as the control variables of quota sampling
for the composition of the sample (i.e gender and age). Table 1 presents the profile of
respondents, with majority of them being female (68 percent) and high percentage of the
respondents fall in the age category of 25 to 34 years are dominant (34 percent). Interestingly,
high proportion of the sample comprises of Malay (56 percent) and Graduates (55 percent)
and nearly 46 percent work in private sector. With respect to monthly income, almost 26
percent of the respondents earn a monthly income of RM 3001-RM 5000.
Table 1:
Demographic Profile of Respondents
Profile
Description
Frequency
Percentage
Gender
Male
Female
16-24
25 – 34
35 – 44
45 – 54
55 - 64
Malay
Chinese
Indian/Others
144
308
129
152
79
51
41
255
149
48
32%
68%
28%
34%
18%
11%
9%
56%
33%
11%
Education
High School
Graduate
Post Graduate
Others
144
247
47
14
31%
55%
11%
3%
Work Sector
Public Sector
Private Sector
Self Employed
Student
77
207
66
102
17%
46%
15%
22%
Monthly
Income
RM0 - RM3,000
RM3,001 – M5,000
RM5,001and above
259
119
74
57
26%
17
Age
Ethnic
Background
Factor Analysis of Construct
Factor analysis was conducted to condense the information contained in measurement
scales. It aids in obtaining a relatively smaller number of dimensions that explain most of
the variations among antecedents influence of brand experience constructs. 16 items from
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the 4 constructs were subjected to principal component analysis (PCA) using SPSS Version
18. Prior to performing PCA, the suitability of data for factor analysis was assessed.
Inspection of the correlation matrix revealed the presence of many coefficients of .3 and
above. The Kaiser-Meyer-Olkin value was .939, exceeding the recommended value of .6
(Pallant, 2007). Bartlett’s test of Sphericity (Pallant, 2007), yielded a significant Chi-Square
value in testing the significance of the correlation matrix. Both tests support the factorability
of the correlation matrix. Four (4) factors with eigenvalues above 1.0 were generated, which
explained about 72.6 % of the total variance. After the viability of the factor analysis was
determined, factor extraction was conducted to determine the smallest number of factors
that can be used to best represent the interrelations among the set of variables. The Principal
Component Analysis (PCA), which according to (Pallant, 2007) is the most commonly used
approach, was utilized in this study to find a simple solution with as few factors possible to
explain as much of the variance in the original data set. Following (Pallant, 2007), advice,
the oblique approach of rotation using Varimax method was chosen. The aim is to obtain a
simple structure, which is a desirable factor pattern characterized by each variable having a
single high loading on one factor and very low loadings on the remaining factors. Only
items with loading above 0.50 were considered. Table 2 displays the dimension of
antecedent’s influence of brand experience for each factor. The factor loadings for the 16
items ranged from .58 to .88, well above the threshold value of 0.35 for practical and
statistical significance. The loadings also presented a clean and highly interpretable solution,
a ‘simple structure’ according to Nunnaly, 1978.
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Table 2: Exploratory Factor Analysis
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of
Sampling Adequacy.
Bartlett's Test of
Approx. ChiSphericity
Square
df
Sig.
.939
4985.713
120
.000
Rotated Component Matrix
Component
SI
PAC
Presentation
Healthy Options
Tasty
Fresh
Willing to Help
Instills Confidence
Efficient Service
Serves as Ordered
Ambience is Soothing
.604
Merchandise Available
.689
Facility Layout
.641
Clean and Tidy
.703
Believable
Trustworthy
Convincing
Credible
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
SQ
PQ
.731
.884
.742
.657
.754
.796
.682
.581
.767
.787
.777
.821
a. Rotation converged in 6 iterations.( value above 0.5 only are shown)
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Table 3 : Confirmatory factor analysis with factor loadings, variance extracted and
construct reliability, R2 and cronbach’s alpha
Constructs
Product Quality
1. The restaurant offers healthy
options.
2. The restaurant serves tasty
food/beverages.
3. The restaurant offers fresh
food/beverages.
Service Quality
1. The staff is always willing to help
me.
2. The behavior of staff instills
confidence in me.
3. The efficient service of this fast
food restaurant has my best interests
at heart.
Store Image
1. The restaurant’s ambience is
soothing.
2. The merchandise is available
when needed.
3. The facility layout allows me to
move around easily.
4. The restaurant is clean and tidy.
Promotional Activities Credibility
The promotion activities of this fast
food brand are …
1. believable
2. trustworthy
3. credible
Brand Experience
1. Disappointed/Contended
2. Unpleasant/Pleasant
3. Bad/Good
4. Relaxed/Stimulated
5. Calm/Excited
6. Un Aroused/Aroused
7. Influenced/Influential
8. Not Established/Established
9.Impassionate/Passionate
10. Unlovable/Lovable
11. Worthless/ Valuable
12. Curiosity UnStimulating/Curiosity stimulating
13.Uninformative/Informative
14. Unmemorable/Memorable
Trust
1. Trust 1
2. Trust 2
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Std.
Critical
Regression Ratio b
(Loading) (t-values)
Composite
Reliability
R2
0.62
0.46
---
0.21
0.80
8.86
0.64
0.73
8.66
0.53
0.85
18.58
0.71
0.88
19.35
0.78
0.77
---
0.59
0.81
18.51
0.66
0.80
18.32
0.65
0.79
---
0.62
0.77
17.28
0.59
0.85
0.84
0.90
0.91
0.93
0.83
24.73
25.68
----
0.70
0.62
0.87
0.57
0.87
0.92
0.82
0.86
0.70
0.95
21.90
22.47
--11.75
12.46
11.96
--16.81
17.90
--15.96
19.57
0.75
0.78
0.70
0.53
0.65
0.56
0.36
0.53
0.59
0.70
0.47
0.63
0.84
0.84
21.11
---
0.70
0.71
0.84
17.94
19.99
Cronbach’s
Alpha
0.36
0.74
0.87
0.88
0.83
0.80
0.81
0.75
0.60
0.73
0.77
0.84
0.69
0.80
0.75
0.81
AVE
0.55
0.93
0.56
0.87
0.56
0.65
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3. Trust 3
4. Trust 4
Commitment
1. Commitment 1
2. Commitment 2
3. Commitment 3
Resonance
1. Behavioral Loyalty 1
2. Behavioral Loyalty 3
3. Active Engagement 10
4. Active Engagement 11
5. Active Engagement 12
6.Attitudinal Attachment 5
7. Attitudinal Attachment 6
Note:
a
b
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0.90
0.81
23.27
---
0.79
0.90
0.87
21.22
--24.75
0.81
0.66
0.78
0.92
0.85
0.91
0.87
0.88
0.90
0.89
0.90
24.05
--26.09
26.44
--26.14
---
0.54
0.88
0.61
0.93
0.66
0.81
0.63
0.72
0.83
0.76
0.77
0.81
0.79
0.80
Fixed parameter
Critical ratio (z-statistic) represents the parameter estimate divided by its standard error
The measures employed in this study initially were purified via item-to-total correlation and
exploratory factor analyses. Multi-item scales were used to capture every construct, for trust
and commitment, which were both assessed using a single item (Chaudhuri and Holbrook,
2001; You, Donthu and Lee, 2000). Our scales were modified from those used in other
studies: product quality and service quality items from Jang and Namkung (2008); store
image items from Jang and Namkung (2008) and Burt et al. (2000); promotional activities
credibility items from Bracket and Carr (2001); brand experience items from Mehrabian and
Russel (1974), Kim and Jin (2001), Chaudhuri and Holbrook (2001), Schmitt (2009), Aeker
and William (1998) and Chi Kin et al (2008); and resonance items from Keller (2003). The
pool of items was further refined using confirmatory factor analysis (via AMOS 8 and the
maximum likelihood estimation technique). To achieve an acceptable ratio of observations to
estimate parameters, it proved necessary to run three separate measurement models; the fit
indices suggest that these models fit the data well. The first measurement model contained
product quality, service quality, store image and promotional activities credibility. The fit
statistics were χ2=403.13, df=170, p<0.001; GFI=0.91; IFI=0.96; CFI=0.96; and
RMSEA=0.06. The second measurement model contained brand experience (χ2=209.97,
df=71, p<0.001; GFI=0.94; IFI=0.96; CFI=0.96; and RMSEA=0.07). The third measurement
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model contained trust, commitment and resonance (χ2=223.99, df=72, p<0.001; GFI=0.93;
IFI=0.97; CFI=0.97; and RMSEA=0.07). Items load heavily on their posited constructs and
have t-values greater than 14.43. As a rigorous test of discriminant validity (see Fornell and
Larcker 1981), the average variance extracted (AVE) for each construct was computed and
found to be greater than the squared correlation between that construct and any other
construct in the model. Table 4 presents the correlation matrix, descriptive statistics and
average variance extracted for the measures. It is reasonable to claim that the measures
possess adequate psychometric properties.
Table 4: Correlation Matrix
Construct
TOTPQ(X1)
Mean a
X1
X2
X3
X4
X5
X6
X7
4.60
0.36
4.77
.524**
0.62
TOTSI(X3)
4.93
.538
**
.690**
0.57
TOTPAC(X4)
4.89
.557**
.620**
.704**
0.74
TOTTRT(X5)
4.70
.494**
.344**
.424**
.446**
0.55
3.58
.292
**
.136
**
.155
**
.293
**
.224**
0.56
.366
**
.269
**
.262
**
.386
**
.355
**
.308**
0.54
.440
**
.375
**
.405
**
.451
**
.499
**
**
.588**
TOTSQ(X2)
TOTCOMT(X6)
TOTRSN(X7)
TOTBE(X8)
3.93
4.84
.475
X8
0.61
X1 (Product Quality), X2 (Service Quality), X3 (Store Image), X4 (Promotional Activities Credibility), X5
(Trust), X6 (Commitment), X7 (resonance), X8 (Brand Experience),
AVE is represented on the diagonal
a Represents a minimum value of 1 and maximum value of 7 (on the basis of seven-point scale for each
variable)
The structural model was tested to assess the hypothesized structural relationships of the
eight constructs (Refer to Figure 2). The results revealed that the structural model has a
significant χ² value (χ² = 271.87, df = 73, p< 0.001) indicating inadequate fit of the data with
the hypothesized model. Based on the suggestion by Hair et al. (1998), reliance on the chisquare test as the sole measure of fit in not recommended due to its sensitivity to sample size.
Hence, alternative fit indices were used as the test for model fit. Based on the result of other
fit indices (RMSEA = 0.07, GFI = 0.93, NFI = 0.95, and CFI = 0.95), it was shown that the
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Cambridge, UK
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2012 Cambridge Business & Economics Conference
ISBN : 9780974211428
model fits the data satisfactorily. Hence, the study’s attempt to establish a plausible model
that has statistical and explanatory power, which could permit confident interpretation of
results, was thus fulfilled. The statistical significance of the structural parameters was
examined and it was found that seven hypotheses were supported and three hypotheses were
not supported. Figure 2 illustrates in detail the results of the hypothesized model. Table 5
presents the results of the tested hypotheses.
Figure 2: Results of hypothesized model
PRODUCT
QUALITY
TRUST
H1 0.29 (t-value 4.26)
H2 -0.06 (t-value - 0.74)
SERVICE
QUALITY
H3 -0.20 (t-value -1.80)
STORE
IMAGE
H9 0.27(t-value 4.59)
H5 0.70 (t-value 14.43) H8 0.61 (t-value 9.32)
BRAND
EXPERIENCE
RESONANCE
H7
0.13 (t-value 2.52)
H6 -0.01 (t-value -0.22)
H10 0.56(t-value 13.08)
H4 0.27 (t-value 2.78)
COMMITMENT
PROMOTIONAL
ACTIVTITIES
CREDIBILITY
Table 5:
Results of the Hypotheses Tested
Hypothesis number and hypothesized path
H1.
H2.
H3.
H4.
H5.
H6.
H7.
Standardized
Coefficient
Critical Ratio
(t-value)
Results
Product Quality  Brand Experience
0.29 (+)
4.26 ****
Supported
Service Quality  Brand Experience
-0.06 (-)
-0.74
Not Supported
Store Image  Brand Experience
-0.20 (-)
-1.80
Not Supported
Promotional Activities Credibility  Brand Experience
0.27 (+)
2.78***
Supported
Brand Experience  Trust
0.70 (+)
14.43****
Supported
Brand Experience  Commitment
-0.01 (-)
-0.22
Not Supported
Brand Experience  Resonance
0.13 (+)
2.52**
Supported
0.61 (+)
9.32****
Supported
0.27 (+)
4.59****
Supported
H8.
Trust  Commitment
H9.
Trust  Resonance
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2012 Cambridge Business & Economics Conference
H10.
Note:
ISBN : 9780974211428
0.56 (+)
Commitment  Resonance
**** Significant at p< 0.001 (t>  3.29)
*** Significant at p< 0.01 (t>  2.57)
a
13.08****
Supported
* Significant at p < 0.10 (t > 1.65)
Non-significant
** Significant at p< 0.05(t>  1.96)
5. DISCUSSION AND CONCLUSION
The findings suggest that product quality and promotional activities credibility play
significant roles in influencing Malaysian to develop brand experience that lead to
resonance towards their favorite fast food brand. Moreover, the study also confirms the
sequential path of influence from PQ to BE, which subsequently can impact RSN found in
several studies Fournier, 1998; Hess and Story, 2005; Jang and Namkung, 2008). Probably,
due to the education and career advancement, Malaysians are also exposed to the modern
lifestyle phenomenon and have the same obsession with the health conscious just like their
western counterparts. ‘Trustworthy’ is the most important driver of the Promotional
Activities Credibility factor of the antecedents influence of brand experience.
Surprisingly, it is reveal that service quality and store image does not play significant role in
influencing Malaysian consumers’ resonance towards favorite fast food brand. The findings
reveal that BE has a positive significant effects on trust and resonance but not commitment.
Trust has the most influential impact on resonance and commitment is also revealed to be a
significant predictor of resonance, but of a smaller magnitude compared to trust.
6. CONTRIBUTIONS, LIMITATION AND FUTURE RESEARCH DIRECTIONS
The novelty of the present study is the contribution of original knowledge through the
development of new findings on a new invention and practical tool of comprehensive brand
experience dimensions, scale and model called The BRAND EXPE-RESONANCE Model.
As an experimental model, this is appropriate and useful for decision making at the
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Cambridge, UK
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2012 Cambridge Business & Economics Conference
management
level
to
predict
brand
ISBN : 9780974211428
experience
and
which
could
guide
policymakers/decision makers/vendors/producers/ local home grown or foreign fast food
operators in the industry. There is limitation experienced by this research, certainly,
longitudinal research is required to capture fully the dynamic nature of customer behaviour
specifically in tracking their eating habit personality, attitude and loyalty, which will be
developed over a long period of time. Future studies should incorporate other factors of
antecedents influence related to the source such as the corporate social responsibility of the
brand. Future studies can examine the relevance of the other brand experience mediator in
the context of Malaysia retail industry. Further, component of brand experience can be
analyzed individually for its influence on consumer behavioural resonance or for its
influence on consumer intentions to shop. Therefore, continuous and more thorough
investigations with incorporations of other measures of the constructs may be needed in
order to enhance our understanding of the concept of brand experience either in the same
setting or different retail environment.
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