Effect of Brand Experience on Satisfaction and Loyalty: Linear and Curvilinear Relationship

Abstract

ABSTRACT: This research aims to explore two models: first, examining the nonlinear relationship between brand experience and outcome variables, i.e., consumer satisfaction and brand loyalty; second, the effect of consumer personality traits on the outcome variables. The aim is to demonstrate that increased brand experience does not always lead to positive responses from customers in terms of satisfaction and loyalty drawing from the “too much of a good thing” meta-theoretical principle. In addition, drawing from 3M Theory, to examine to what extent consumer personality traits influence their behaviours towards brands Data were collected from 274 participants through questionnaires administered randomly in populated areas and further analysed using regressions. The results confirmed that there exists a nonlinear relationship between brand experience, consumer satisfaction, and brand loyalty. In other words, brand experience influences the outcome variables to a point where its effect begins to diminish and becomes negative. This makes it paramount for brand managers especially in the tourism and hospitality sector to remain aware that delivering a superior experience to their customers does not necessarily increase their level of satisfaction. The study also confirmed that some of the big 5 personality traits have influence on consumer behaviour in terms of brand experience, satisfaction and loyalty. This further strengthens the 3M Theory as to how consumer personality traits play a significant role in shaping consumer experiences with brands. This study also provides a fresh perspective on the brand experience construct in the service industry. It departs from mainstream brand experience studies by demonstrating that the relationship between brand experience, satisfaction, and loyalty is nonlinear, where increasing brand experience is associated with diminishing returns of satisfaction and loyalty. Keywords: Brand experience, consumer satisfaction, brand loyalty, curvilinear relationship, personality traits.