Small Medium Enterprises Brand Gestalt: A Key Driver of Customer Satisfaction and Repurchase Intention

Authors

DOI:

https://doi.org/10.26668/businessreview/2023.v8i6.1463

Keywords:

Brand Gestalt, Customer Satisfaction, Repurchase Intention, Small Medium Enterprise

Abstract

Purpose:  There has been a lack of empirical research examining the relationship between brand gestalt, customer satisfaction, and repurchase intention. The present study aims to fill this theoretical gap by analyzing the influence of brand gestalt on customer satisfaction and repurchase intention in the context of Small and Medium Enterprises (SMEs).

 

Theoretical framework:   Brand gestalt is a crucial construct that explains the comprehensive perception of a brand held by customers, and its importance in constructing brand meaning is paramount.

 

Design/methodology/approach:  The study employed a quantitative survey approach, using purposive sampling to collect data from 344 SME customers in Manado, Indonesia. The hypotheses were tested using partial least squares structural equation model (PLS-SEM).

 

Findings:  The empirical results demonstrated that the four dimensions of brand gestalt (namely, story, sensescape, servicescape, and stakeholder) are significant predictors of customer satisfaction. Additionally, both brand sensescape and servicescape exert a significant impact on customer intention to repurchase, both directly and through the mediating effect of customer satisfaction. While the direct relationship between the story and repurchase intention was not found to be significant, this result provides support for the complete mediating role of customer satisfaction.

 

Research, Practical & Social implications: These findings provide valuable insights for SME practitioners in formulating brand strategies, highlighting that an effective story, sensescape, and servicescape can lead to customer satisfaction and repurchase intention.

 

Originality/value:  This study contributes to the existing literature on SME branding by providing the first empirical evidence on the link between brand gestalt, customer satisfaction, and repurchase intention. Moreover, it can aid in the development of effective branding strategies and improve the competitiveness and performance of small businesses, which can have a positive impact on local economies and communities.

Downloads

Download data is not yet available.

References

Aaker, D. A. (1996). Measuring brand equity across products and markets. California management review, 38(3).

Abimbola, T., & Kocak, A. (2007). Brand, organization identity and reputation: SMEs as expressive organizations: A resources‐based perspective. Qualitative Market Research: An International Journal.

Abin, D. G., Mandagi, D. W., & Pasuhuk, L. S. (2022). Influence of brand image on customer attitude, intention to purchase and satisfaction: The case of start-up brand Pomie Bakery. Enrichment: Journal of Management, 12(5), 3907-3917.

Agostini, L., Caviggioli, F., Filippini, R., & Nosella, A. (2015). Does patenting influence SME sales performance? A quantity and quality analysis of patents in Northern Italy. European Journal of Innovation Management.

Ahmad, Z., Jun, M., Khan, I., Abdullah, M., & Ghauri, T. A. (2016). Examining mediating role of customer loyalty for influence of brand related attributes on customer repurchase intention. Journal of Northeast Agricultural University (English Edition), 23(2), 89-96.

Ajzen, I., & Kruglanski, A. W. (2019). Reasoned action in the service of goal pursuit. Psychological review, 126(5), 774.

Al Haraisa, Y. E. (2022). The Impact of Open-Book Management on Customer Satisfaction: the Mediating Role of Trust. International Journal of Professional Business Review, 7(4), e0453-e0453.

Ali, F., Kim, W. G., Li, J., & Jeon, H. M. (2018). Make it delightful: Customers' experience, satisfaction and loyalty in Malaysian theme parks. Journal of destination marketing & management, 7, 1-11.

Anees-ur-Rehman, M., Wong, H. Y., & Hossain, M. (2016). The progression of brand orientation literature in twenty years: A systematic literature review. Journal of Brand Management, 23, 612-630.

Anees-ur-Rehman, M., Wong, H. Y., Sultan, P., & Merrilees, B. (2018). How brand-oriented strategy affects the financial performance of B2B SMEs. Journal of Business & Industrial Marketing.

Ashfaq, M., Yun, J., Waheed, A., Khan, M. S., & Farrukh, M. (2019). Customers’ expectation, satisfaction, and repurchase intention of used products online: Empirical evidence from China. Sage Open, 9(2), 2158244019846212.

Barrett, P. (2007). Structural equation modelling: Adjudging model fit. Personality and Individual differences, 42(5), 815-824.

Bitner, M. J. (1992). Servicescapes: The impact of physical surroundings on customers and employees. Journal of Marketing, 56(2), 57-71.

Bosma, N., Content, J., Sanders, M., & Stam, E. (2018). Institutions, entrepreneurship, and economic growth in Europe. Small Business Economics, 51, 483-499.

Brechman, J. M., & Purvis, S. C. (2015). Narrative, transportation and advertising. International Journal of Advertising, 34(2), 366-381.

Calder, B. J., Hollebeek, L. D., & Malthouse, E. C. (2018). Creating stronger brands through consumer experience and engagement. Customer engagement marketing, 221-242.

Carlson, J., Rahman, M. M., Taylor, A., & Voola, R. (2019). Feel the VIBE: examining value-in-the-brand-page-experience and its impact on satisfaction and customer engagement behaviours in mobile social media. Journal of Retailing and Consumer Services, 46, 149-162.

Centeno, D., & Mandagi, D. (2022). Destination brand gestalt and its effects on brand attachment and brand loyalty. Philippine Management Review, 29(1), 1-24.

Centeno, E., Cambra-Fierro, J., Vazquez-Carrasco, R., Hart, S. J., & Dinnie, K. (2019). The interplay between SME owner-managers and the brand-as-a-person. Journal of Product & Brand Management.

Chang, Y., Wang, X., & Arnett, D. B. (2018). Enhancing firm performance: The role of brand orientation in business-to-business marketing. Industrial Marketing Management, 72, 17-25.

Cheng, F. F., Wu, C. S., & Chen, Y. C. (2020). Creating customer loyalty in online brand communities. Computers in Human Behavior, 107, 105752.

Cheng, Y., Wei, W., & Zhang, L. (2020). Seeing destinations through vlogs: implications for leveraging customer engagement behavior to increase travel intention. International Journal of Contemporary Hospitality Management, 32(10), 3227-3248.

Chiu, W., & Cho, H. (2021). E-commerce brand: The effect of perceived brand leadership on consumers’ satisfaction and repurchase intention on e-commerce websites. Asia Pacific Journal of Marketing and Logistics, 33(6), 1339-1362.

Conejo, F., & Wooliscroft, B. (2015). Brands defined as semiotic marketing systems. Journal of Macromarketing, 35(3), 287-301.

Cronbach, L. J., & Furby, L. (1970). How we should measure" change": Or should we?. Psychological bulletin, 74(1), 68.

Diamond, N., Sherry Jr, J. F., Muñiz Jr, A. M., McGrath, M. A., Kozinets, R. V., & Borghini, S. (2009). American Girl and the brand gestalt: Closing the loop on sociocultural branding research. Journal of Marketing, 73(3), 118-134.

Fornell, C., & Larcker, D. F. (1981). Structural equation models with unobservable variables and measurement error: Algebra and statistics.

Fournier, S. (1998). Consumers and their brands: Developing relationship theory in consumer research. Journal of consumer research, 24(4), 343-373.

Gilmore, A., & Carson, D. (2018). SME marketing: efficiency in practice. Small Enterprise Research, 25(3), 213-226.

Hirvonen, S., & Laukkanen, T. (2014). Brand orientation in small firms: an empirical test of the impact on brand performance. Journal of Strategic Marketing, 22(1), 41-58.

Hsu, K. T. (2012). The advertising effects of corporate social responsibility on corporate reputation and brand equity: Evidence from the life insurance industry in Taiwan. Journal of business ethics, 109, 189-201.

Huang, P. L., Lee, B. C., & Chen, C. C. (2019). The influence of service quality on customer satisfaction and loyalty in B2B technology service industry. Total Quality Management & Business Excellence, 30(13-14), 1449-1465.

Hwang, J., Choe, J. Y. J., Kim, H. M., & Kim, J. J. (2021). Human baristas and robot baristas: How does brand experience affect brand satisfaction, brand attitude, brand attachment, and brand loyalty?. International Journal of Hospitality Management, 99, 103050.

Jain, N. K., Gajjar, H., & Shah, B. J. (2021). Electronic logistics service quality and repurchase intention in e-tailing: Catalytic role of shopping satisfaction, payment options, gender and returning experience. Journal of Retailing and Consumer Services, 59, 102360.

Kaur, H., Paruthi, M., Islam, J., & Hollebeek, L. D. (2020). The role of brand community identification and reward on consumer brand engagement and brand loyalty in virtual brand communities. Telematics and Informatics, 46, 101321.

Keller, K. L. (2020). Consumer Research Insights on Brands and Branding: A JCR Curation. Journal of Consumer Research, 46(5), 995–1001.

Keller, K. L., & Kotler, P. (2015). Holistic marketing: a broad, integrated perspective to marketing management. In Does Marketing Need Reform?: Fresh Perspectives on the Future (pp. 308-313). Routledge.

Khalifa, M., & Liu, V. (2007). Online consumer retention: contingent effects of online shopping habit and online shopping experience. European Journal of Information Systems, 16(6), 780-792.

Khamitov, M., Wang, X., & Thomson, M. (2019). How well do consumer-brand relationships drive customer brand loyalty? Generalizations from a meta-analysis of brand relationship elast

Khan, R. U., Salamzadeh, Y., Iqbal, Q., & Yang, S. (2022). The impact of customer relationship management and company reputation on customer loyalty: The mediating role of customer satisfaction. Journal of Relationship Marketing, 21(1), 1-26.

Kim, J. E., Lloyd, S., & Cervellon, M. C. (2016). Narrative-transportation storylines in luxury brand advertising: Motivating consumer engagement. Journal of Business Research, 69(1), 304-313.

Laukkanen, T., Tuominen, S., Reijonen, H., & Hirvonen, S. (2016). Does market orientation pay off without brand orientation? A study of small business entrepreneurs. Journal of Marketing Management, 32(7-8), 673-694.

Law, C. C., Zhang, Y., & Gow, J. (2022). Airline service quality, customer satisfaction, and repurchase Intention: Laotian air passengers’ perspective. Case Studies on Transport Policy, 10(2), 741-750.

Lebo, T. C., & Mandagi, D. W. (2023). Integrating service quality, customer satisfaction, and brand gestalt in the context of multi-level marketing (MLM) companies. Jurnal Mantik, 7(1), 100-111.

Lee, J. Y., Kozlenkova, I. V., & Palmatier, R. W. (2015). Structural marketing: Using organizational structure to achieve marketing objectives. Journal of the Academy of Marketing Science, 43, 73-99.

Lin, C., & Lekhawipat, W. (2014). Factors affecting online repurchase intention. Industrial Management & Data Systems, 114(3), 361-380

Mandagi, D. W. (2023). Pemasaran Media Sosial, Gestalt Merek Dan Loyalitas Pelangan: Studi Empiris Pada Tomohon International Flower Festival. Manajemen Dewantara, 7(1), 32-45.

Mandagi, D. W., & Aseng, A. C. (2021). Millennials and Gen Z's Perception of Social Media Marketing Effectiveness on the Festival's Branding: The Mediating Effect of Brand Gestalt. Asia-Pacific Social Science Review, 21(3).

Mandagi, D. W., Centeno, D. D. & Indrajit (2021). Brand gestalt scale development and validation: A takeoff from tourism destination branding. Journal of Destination Marketing & Management, 19, 100539.

Mandagi, D. W., Centeno, D. D. & Indrajit (2022). Destination brand gestalt and its effects on brand attachment and brand loyalty. Philippine Management Review, 29(1), 1-24.

Mandagi, D.W. & Sondakh, D.K. (2022). Exploring the Multi-Dimensionality of Tourism Destination Brand Story. African Journal of Hospitality, Tourism and Leisure, 11(6), 2128-2142.

Mitchell, R., Hutchinson, K., Quinn, B., & Gilmore, A. (2015). A framework for SME retail branding. Journal of Marketing Management, 31(17-18), 1818-1850.

Mitchell, S., O’Dowd, P., & Dimache, A. (2020). Manufacturing SMEs doing it for themselves: Developing, testing and piloting an online sustainability and eco-innovation toolkit for SMEs. International Journal of Sustainable Engineering, 13(3), 159-170.

Moreira, A. C., Fortes, N., & Santiago, R. (2017). Influence of sensory stimuli on brand experience, brand equity and purchase intention. Journal of Business Economics and Management, 18(1), 68-83.

Morris, M. H., Neumeyer, X., & Kuratko, D. F. (2015). A portfolio perspective on entrepreneurship and economic development. Small Business Economics, 45, 713-728.

Muhonen, T., Hirvonen, S., & Laukkanen, T. (2017). SME brand identity: its components, and performance effects. Journal of Product & Brand Management.

Nasir, M., Adil, M., & Dhamija, A. (2021). The synergetic effect of after sales service, customer satisfaction, loyalty and repurchase intention on word of mouth. International Journal of Quality and Service Sciences, 13(3), 489-505.

Odoom, R., Narteh, B., & Boateng, R. (2017). Branding in small-and medium-sized enterprises (SMEs): Current issues and research avenues. Qualitative Market Research: An International Journal.

Oliver, R. L. (2014). Satisfaction: A behavioral perspective on the consumer. Routledge.

Reijonen, H., Laukkanen, T., Komppula, R., & Tuominen, S. (2012). Are growing SMEs more market‐oriented and brand‐oriented?. Journal of Small Business Management, 50(4), 699-716.

Renton, M., Daellenbach, U., Davenport, S., & James E, R. (2016). Finding fit: An exploratory look at SME brand orientation and brand management in the New Zealand food and beverage sector. Journal of Brand Management, 23, 289-305.

Rondonuwu, B. F., & Mandagi, D. W. (2023). Brand gestalt as a key determinant of tourist satisfaction and loyalty: Empirical study of super-priority destination Likupang. Jurnal Ekonomi, 12(02), 452-464.

Sarstedt, M., Ringle, C. M., & Hair, J. F. (2021). Partial least squares structural equation modeling. In Handbook of market research (pp. 587-632). Cham: Springer International Publishing.

Siddik, A. S., Mandagi, D. W., & Lelengboto, A. L. (2022). Pemasaran Sosial Media Dan Gestalt Merek Pada Perusahaan Indoor Theme Park. SEIKO: Journal of Management & Business, 4(3), 462-479.

Ting, C. W., Chen, M. S., & Lee, C. L. (2013). E-satisfaction and post-purchase behaviour of online travel product shopping. Journal of Statistics and Management Systems, 16(2-3), 223-240.

Toding, J. S., & Mandagi, D. W. (2022). dimensi brand gestalt sebagai prediktor kepuasan pelanggan dan niat membeli ulang pelanggan UMKM. Jurnal Ilmiah Manajemen Bisnis dan Inovasi (JMBI), 9(3), 1167-1185.

Warbung, C. J. E., Wowor, M. C., Walean, R. H., & Mandagi, D. W. (2023). The impact of social media marketing on beauty clinic brand equity: the Case of Zap Manado. International Journal of Professional Business Review, 8(4), e01389. https://doi.org/10.26668/businessreview/2023.v8i4.1389.

Urde, M., Baumgarth, C., & Merrilees, B. (2013). Brand orientation and market orientation—From alternatives to synergy. Journal of Business Research, 66(1), 13-20.

Walean, R. H., Wullur., L & Mandagi, D. W., (2023). Constructing a destination gestalt model: Brand gestalt, brand attitude, and revisit intention. Asia-Pacific Social Science Review, 23(1).

Waworuntu, E. C., Mandagi, D. W., & Pangemanan, A. S. (2022). ‘I see it, I want it, I buy it’: The role of social media marketing in shaping brand image and gen z’s intention to purchase local product. Society, 10(2), 253-271.

Wilson, N., Keni, K., & Tan, P. H. P. (2019). The effect of website design quality and service quality on repurchase intention in the e-commerce industry: A cross-continental analysis. Gadjah Mada International Journal of Business, 21(2), 187-222.

Yieh, K., Yeh, C. H., Tseng, T. H., Wang, Y. S., & Wu, Y. T. (2018). An investigation of B-to-B brand value: evidence from manufacturing SMEs in Taiwan. Journal of Business-to-Business Marketing, 25(2), 119-136.

Downloads

Published

2023-06-14

How to Cite

Rantung, D. I., Mandagi, D. W., Wuryaningrat, N. F., & Lelengboto, A. L. P. (2023). Small Medium Enterprises Brand Gestalt: A Key Driver of Customer Satisfaction and Repurchase Intention. International Journal of Professional Business Review, 8(6), e01463. https://doi.org/10.26668/businessreview/2023.v8i6.1463