Effects of perceived value dimensions on customer brand loyalty towards luxury cars

Abstract

Purpose – The research aims to examine the influence of perceived value (PV) dimensions on brand loyalty of luxury car owners and to examine the mediating role of attitudinal loyalty (AL) between PV dimensions and behavioral loyalty (BL). Design/methodology/approach – Primary data for the study were gathered from the luxury car owners in Kerala, India. The construct measurements have been adopted from previous research studies. Structural equation modeling with the partial least square (PLS) technique was used to analyze the measurements and conceptual model. Findings – The findings show that out of four PV dimensions among luxury car owners, the hedonic value (HV) significantly influences their AL. Economic value influences BL, and social values have an impact on AL as well as BL, but the relationship of functional value with any is not supported by the results. AL is a strong predictor of BL, and it actively mediates the relationship of HV and symbolic value with BL. Practical implications – The manufactures of luxury cars provide more importance to hedonic and symbolic elements while launching new models and consider the price perceptions of the targeted customers while making decisions related to brand attachment and brand loyalty. Originality/value – This study contributes to the decision-making of the rapidly growing vehicle market by examining the perceptions and by providing the effects of perceived values among luxury car owners. Also, it extends the literature by developing a framework for PV dimensions on AL and BL and also incorporated the mediating role of AL.

Keywords

• Attitudinal loyalty
• Hedonic value
• Economic value
• Functional value
• Symbolic value
• Behavioral loyalty