The Formation of Brand Loyalty: A Partial Dual-Factor Explanation

ABSTRACT

This study examines the roles of both brand satisfaction and brand trust in the formation and development of brand loyalty among Chinese mobile phone users. Drawing on Herzberg's Dual-factor Theory of Job Satisfaction, we proposed and empirically tested hypotheses about the roles of brand satisfaction and brand trust on brand loyalty. Our results suggest that the roles of brand satisfaction and brand trust in the formation and development of brand loyalty are different, both in their own asymmetric manner. Particularly, in contrast with previous research, we find that neither brand satisfaction nor brand trust is fully qualified as “Hygienic Factor” and “Motivator,” correspondingly, in a Dual-factor framework. In addition, the quadratic effects by, and the mediation roles of, the latent variables are identified. Managerial significance of the findings is discussed.

KEYWORDS:

• Brand loyalty
• brand satisfaction
• brand trust
• hygienic factor
• motivator
• SEM