Antecedents of Customer Brand Engagement Affecting Customer Satisfaction, Trust, and Commitments in Forming Loyalty and Word of Mouth in Indonesia

ASEAN Marketing Journal ASEAN Marketing Journal

Volume 14

Number 1

June

Article 6

6-30-2022

Antecedents of Customer Brand Engagement Affecting Customer Antecedents of Customer Brand Engagement Affecting Customer

Satisfaction, Trust, and Commitments in Forming Loyalty and Satisfaction, Trust, and Commitments in Forming Loyalty and

Word of Mouth in Indonesia Word of Mouth in Indonesia

Unik D. Lestari

Universitas Esa Unggul, Indonesia

, [email protected]

Tantri Yanuar R. Syah

Universitas Esa Unggul, Indonesia

, [email protected]

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Recommended Citation Recommended Citation

Lestari, Unik D. and Syah, Tantri Yanuar R. (2022) "Antecedents of Customer Brand Engagement Affecting

Customer Satisfaction, Trust, and Commitments in Forming Loyalty and Word of Mouth in Indonesia,"

ASEAN Marketing Journal

: Vol. 14: No. 1, Article 6.

DOI: 10.21002/amj.v14i1.1152

Available at: https://scholarhub.ui.ac.id/amj/vol14/iss1/6

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ASEAN Marketing Journal • Vol. XIV • No. 1 • 97-122

ANTECEDENTS OF CUSTOMER BRAND ENGAGEMENT

AFFECTING CUSTOMER SATISFACTION, TRUST, AND

COMMITMENTS IN FORMING LOYALTY

AND WORD OF MOUTH IN INDONESIA

Unik Dwi Lestari

Universitas Esa Unggul, Indonesia

[email protected]

Tantri Yanuar Rahmat Syah

Universitas Esa Unggul, Indonesia

[email protected]

Abstract

Manuscript type: Research Article

Research Aims: The research objective was to determine customer brand engagement (CBE)

drivers, which directly or indirectly generate word of mouth (WOM) on Instagram through trust,

commitment, customer satisfaction, and loyalty.

Design/methodology/approach: This research was conducted in Indonesia with 213 respondents

who are active on Instagram accounts, have an age range between 20 and 60 years, and have an

attachment to products from middle to upper-class brands in Indonesia. This quantitative research

uses the Structural Equation Model (SEM) method.

Research Findings: The results show that customer involvement and flow experience are the main

drivers of CBE, which then directly generate WOM, customer trust, and customer commitment.

CBE also indirectly forms WOM through trust and commitment.

Theoretical Contribution/Originality: This study can explain the importance of customer

involvement and experience in forming CBE to gain loyalty and word of mouth through Instagram

in Indonesia.

Practitioner/Policy Implication: The managerial implication of the research is about brand-

building strategies, forming satisfaction, trust, and commitment to brand loyalty in the short and

long term through disseminating information on social media such as Instagram.

Research limitation/Implications: This study has limitations; first, the research data only relies

on one social networking site (Instagram) in Indonesia to test hypotheses. Second, the survey was

about middle-class and above-class product brands. Third, in this case, it has yet to discuss

demographics about age.

Keywords: Involvement, Experience, Engagement, Loyalty, Word of Mouth.

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INTRODUCTION

Today's use of the internet, social media, and

other digital communication technologies is

increasing rapidly and has become part of the

daily lives of billions of people worldwide.

According to statistics, in January 2020, 4.54

billion people will be active internet users,

covering 59% of the global population

(Johnson, 2020). The most popular social

media among young people is Instagram

(Ghatnekar et al., 2019), where Instagram

users in Indonesia ranked fourth globally

(Clement, 2019). With the advent of social

media, traditional sellers' and customers'

roles have changed, and people can

communicate directly with brands (Tsai &

Men, 2014). Likewise, the company's

building and maintaining consumer

relationships also has much to do with its

(Gawas et al., 2018).

Although customers interact with thousands

of brands, customers improve relationships

intensely with only a small percentage of

brands (Carvalho & Fernandes, 2018). In

virtual brand communities, customer brand

engagement (CBE) involves specific

interactive experiences between the

customer, the brand, and other community

members (Brodie et al., 2013). CBE is an

underlying psychological state (Patterson &

Yu, 2015). Therefore, developing a CBE is

essential to maintaining long-term customer

relationships (Cha et al., 2016). In addition,

the people engaged may be more proactive in

spreading the word on social media platforms

(Loureiro et al., 2017).

Previous research found that customer

involvement and interactivity increase CBE

(Carvalho & Fernandes, 2018; France,

Merrilees, & Miller, 2016). In addition, what

makes up CBE is customer participation

(Dessart, 2015) and customer flow

experience (Carvalho & Fernandes, 2018).

Customer involvement also increases

customer participation (Hsu & Chen, 2014;

Ida, 2017), customer flow experience

(Altunel & Kocak, 2016), as well as

cumulative customer satisfaction (Altunel &

Kocak, 2016; Hamza, 2015; Hsu & Chen,

2014). The research on social media and

Facebook found that CBE forms customer

commitment, customer trust, cumulative

customer satisfaction, and positive customer

WOM (word of mouth) referrals (Carvalho &

Fernandes, 2018).

Research on Facebook social media on the

antecedents of CBE (customer involvement,

participation, interactivity, and flow

experience), whose results are customer trust,

Unik Dwi Lestari et al. / ASEAN Marketing Journal © June (2022) Vol. XIV No. 1

customer commitment,and cumulative

customer satisfaction, then finally, building

loyalty and WOM referrals have been done a

lot separately. Most of the research also uses

Facebook only. However, this study conducts

research simultaneously and adds customer

loyalty variables to build WOM referrals on

Instagram social media, especially in

Indonesia. In addition, it also explores the

influence of customer involvement and

customer flow experience on customer

satisfaction. Therefore, the research focuses

on social media Instagram usage for active

users in Indonesia who use well-known

products in the upper-middle-class product

groups such as Zara, Nike, H&M, Adidas,

Gucci, Apple, Buccheri, Uniqlo, Rolex,

Executive, and others. The goal is to

determine the main drivers of CBE and

whether the results affect customer loyalty

and the dissemination of WOM information

through Instagram social media in Indonesia.

We hope this can improve CBE's

understanding of Instagram social media,

redefining marketing tactics and more

focused strategies.

LITERATURE REVIEW

Influence of Customer Involvement,

Participation, Interactivity, and Flow

Experience on CBE

Customers involved with a brand will devote

their time and energy to the brand's content,

so involvement is one of the essential drivers

of the CBE (Robertson et al., 2016). In

addition, according to Schmitt et al. (2015),

every service exchange involves a form of

customer experience. Customers who

experience pleasure when acting with total

engagement will have a customer flow

experience (Huang et al., 2012). Customer

involvement is likely only possible if brands

generate participation among active

consumers on social media networks and

platforms (Gangi & Wasko, 2016). Previous

studies have found that customer

involvement increases CBE (Carvalho &

Fernandes, 2018; France et al., 2016; Parihar

et al., 2018; Solem & Pedersen, 2016). Other

than that improves the customer flow

experience (Altunel & Kocak, 2016) and

customer participation (Altunel & Kocak,

2016; Carvalho & Fernandes, 2018).

Through participation (whether through

consumption, contribution, or creation),

customers can get to know the brand better,

adjust their expectations, and have a more

vital perception of the adjustment and cost

reduction (Carvalho & Fernandes, 2018).

Customer participation is also necessary

before expressing a CBE (Nysveen &

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100

Pedersen, 2014). In addition, customer

interactivity in posts supports user

engagement in liking, commenting, or

sharing (Luarn et al., 2015). Researchers

have previously proven that customer

participation increases CBE (Chen & Raab,

2014; Dessart, 2015; Solem & Pedersen,

2016) and customer interactivity (Carvalho &

Fernandes, 2018).

Consumer engagement characterises a more

interactive relationship between consumers

and brands (Loureiro et al., 2017). Online

information with high interactivity leads to

more online engagement, wherein social

posts have the most comment activity (Luarn

et al., 2015). Customers can have in-depth

discussions about similar shopping

experiences, share product-related

information, get psychological support, and

promote their sense of identity through

interactions on social media (Li et al., 2020).

Shared experiences make community

members feel a shared identity, i.e.,

community identification that positively

impacts online brand community engagement

(Chien et al., 2012). Likewise, customer

interactivity has previously been found to

increase CBE (Carvalho & Fernandes, 2018;

France et al., 2016) and improve the

customer flow experience (Carvalho &

Fernandes, 2018). Besides, customer flow

experience increases the CBE (Carvalho &

Fernandes, 2018). Therefore, based on the

above statement, we propose the following

hypotheses:

H1. Customer involvement increases CBE.

H2. Customer involvement increases

customer participation.

H3. Customer involvement increases

customer flow experience.

H4. Customer participation increases CBE.

H5. Customer participation increases

customer interactivity.

H6. Customer interactivity increases CBE.

H7. Customer interactivity increases the

customer flow experience.

H8. Customer flow experience increases

CBE.

Influence of Customer Involvement and

Flow Experience on Cumulative

Satisfaction

Customer experience, defined as a customer's

response to interactions with an organisation

before, during, or after purchase or

consumption, across multiple channels and

across time, has emerged as a source of

sustained competitive differentiation

(Kranzbühler et al., 2018, Lemon and

Verhoef, 2016, Voorhees et al., 2017). At the

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same time, flow is an unconscious experience

where the individual is wholly focused and

enjoying the developing activity (Liu et al.,

2016). Furthermore, when a customer

experiences helping another customer, it can

increase satisfaction (López-López et al.,

2014). Therefore, quality of experience and

involvement are essential to forming a

satisfaction (Altunel & Kocak, 2016). In

several kinds of research, the impact of brand

experience on customer satisfaction is

significant (Abdirahman et al., 2018;

Hussein, 2018; Khan et al., 2015). Likewise,

customer involvement increases customer

satisfaction cumulatively (Altunel & Kocak,

2016; Hamza, 2015; Hsu & Chen, 2014; Kim

& Lee, 2017). Then, we propose the

following hypotheses:

H9. Customer flow experience increases

cumulative customer satisfaction.

H10. Customer involvement increases

cumulative customer satisfaction.

The Effect of CBE On Cumulative

Customer Satisfaction, Trust, And

Commitment

Customer satisfaction is defined as the result

of the cognitive and affective evaluation,

where standard expectations are compared

with actual perceived performance with the

disconfirmation paradigm (Sharmeela-Banu

et al., 2012). Previous literature theorized that

customer satisfaction could be classified into

transaction-specific and general overall

satisfaction (Roth & Bösener, 2015).

Transaction-specific customer satisfaction

refers to customers' ratings after a particular

purchase experience, and overall satisfaction

(cumulative satisfaction) means customers'

ratings of brands are based on their

experiences. The effect of satisfaction on

different levels of engagement may also not

be the same across all service contexts; it may

depend on the customer engagement

experience that motivates the customer

(Thakur, 2019). Thus, increasing satisfaction

is very important because satisfaction is the

key to a brand's long-term survival (Saulina

& Syah, 2018). Previous studies have found

that CBE increases cumulative customer

satisfaction (Carvalho & Fernandes, 2018;

Solem & Pedersen, 2016).

Customers who engage with social media

tend to develop trusting relationships with the

social media (So et al., 2014). Customer trust

is critical in developing and facilitating

connections in the brand community (Bruhn

et al., 2014). Previous studies have shown

that CBE increases customer trust (Carvalho

& Fernandes, 2018).

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CBE focuses on satisfying customers by

providing superior value over competitors to

build customer trust and commitment in long-

term relationships (Sashi, 2012). Moreover,

customer trust and commitment can be

formed when highly engaged consumers

receive shared knowledge and

recommendations from a brand from an

expert (Pongpaew et al., 2017). The success

of social media marketing usually refers to its

ability to engage online users (Pentina et al.,

2014) and build and develop customer

relationships (Pham & Gammoh, 2015). As

previously found, CBE increased the

customer commitment (Carvalho &

Fernandes, 2018) and WOM referrals

(Carvalho & Fernandes, 2018; Niyomsart &

Khamwon, 2016). Thus, the following

hypotheses are proposed:

H11. CBE increases cumulative customer

satisfaction.

H12. CBE increases customer commitment.

H13. CBE increases customer trust.

H14. CBE increases customer WOM

referrals.

Influence of Cumulative Customer

Satisfaction, Trust, and Commitment on

Loyalty

Customer cumulative satisfaction is vital and

crucial in all businesses because customer

satisfaction will determine the overall

performance of the company as well as

customer trust and loyalty (Bahtar, 2018). It

supports this because once customers are

satisfied with the brand, they are more willing

to be loyal, given that the brand can keep

them with their needs and desires, thus

making them more inclined to choose the

same brand all the time (Haro et al., 2014).

Have found that high customer cumulative

satisfaction will increase customer loyalty

(Abdirahman et al., 2018; Khan et al., 2015;

Kim & Lee, 2017; Nurlitasari & Syah, 2016;

Ramaseshan et al., 2017; Saulina & Syah,

2018; Seesaiprai, 2016; Suhendar &

Ruswanti, 2019)

Trusting brands is vital in driving consumer

loyalty to a particular brand (Afriani et al.,

2019). Consumer trust in a brand can be

obtained through a product if a marketer

creates and maintains a positive emotional

relationship with consumers (Hidayanti,

2018). Customer trust is undoubtedly

different from other consumers of a product

or service, so the higher the trust, the higher

the customer loyalty (Saulina & Syah, 2018).

Previous studies have found that customer

trust increases customer loyalty (Afriani et

al., 2019; Ellonen et al., 2010).

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It takes work to make loyal customers using

word of mouth firmly directly. It requires

consistently providing error-free services that

increase customer commitment (Selvakumar,

2015). Committed customers remain with the

company as loyal customers and provide

references (Afridi et al., 2020). Developing

brand loyalty is critical to maintaining long-

term customer relationships (Cha et al.,

2016). Previous hospitality researchers have

found commitment to be a key component in

building and maintaining long-term

relationships between business partners.

Hence customer commitment has been

identified as a critical driver of customer

loyalty (Rather, 2017; Rather & Sharma,

2017). Likewise, loyal customers to the

service provider will likely make optimistic

WOM recommendations (Niyomsart &

Khamwon, 2016). The following hypothesis

is as follows:

H15. Customer cumulative satisfaction

increases customer loyalty.

H16. Customer commitment increases

customer loyalty.

H17. Customer trust increases customer

loyalty.

H18. Customer loyalty increases customer

WOM referrals.

Based on the theoretical framework above,

the research model can be described in Figure

Figure 1. Path Diagram

RESEARCH METHOD

Data is collected using survey methods by

spreading online questionnaires and

measurements using the Likert scale of 1 - 7

(1 = strongly disagree and 7 = strongly agree).

About measurements, there are four questions

adapted from Cheung & To (2011) to measure

Customer Involvement (CIV), such as: "This

brand is better than other brands" and "This

brand means a lot to me." Three questions

from Muntinga, Moorman, & Smit (2011) for

Customer Participation (CP), such as: "I saw

other people's comments about this brand on

Instagram" and "I spread information about

this brand on Instagram." Three questions

from Wu (2006) to measure Customer

Interactivity (CIT) which include items: " I

can communicate with the company directly

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to ask more about this brand" and "I consider

social media platforms sensitive to my need

for brand information." There are three

questions from Mathwick & Rigdon (2004) to

measure the Customer Flow Experience

(CFE), such as "When I use Instagram, I

forget about other things" and "I enjoy

searching for this brand on Instagram." Four

questions from Kinard & Capella (2006) to

measure Customer WOM referrals (WOM)

include: "On Instagram, I have told more

people about this brand than any other brand"

and "On Instagram, I tell people about this

brand in detail." Three questions from Olsen

& Johnson (2003) to measure Cumulative

Customer Satisfaction (CCS) such as: "On

Instagram, this brand is very close to the

ideal" and "On Instagram, I am satisfied with

this brand." There are four questions from

Ballester, Munuera, & Yague (2003) to

measure Customer Trust (CT) as: "This brand

name lived up to my expectations" and "This

brand is a brand that has never let me down."

There are six questions from Dwivedi (2015)

to measure CBE (CEN), such as: "I am

passionate about using this brand" and "I can

continue to use this brand for a long time."

The scales were taken from Sharma & Rather

(2016) and Rather (2017) to measure

Customer Commitment (CC) and Customer

Loyalty (CLO). The items for Customer

Commitment (CC) such as: "I love this brand"

and "I have a special relationship with this

brand." Whereas the items for Customer

Loyalty (CLO) include: "When I need this

product, I will buy this brand" and "I intend to

continue buying this brand." Total

measurements are using thirty-eight

questions.

Respondents are determined using the

purposive sampling method in Indonesia,

with sample criteria being those with an

Instagram account. They are at least active

for one year on Instagram, have an age range

of 20 to 60 years, and are attached to products

with well-known brands in the upper-middle-

class product group. Factor analysis is done

for validity and reliability tests with SPSS 24

and subsequent validity tests by looking at

Kaiser-Meyer-Olkin measurement values

(KMO) and Measure of Sampling Adequacy

(MSA). The results of KMO (0.567 to 0.818)

and MSA (0.543 to 0.883) are more

significant than 0.5, which means the factor

analysis is appropriate. Internal reliability

tests of the factors identified showed a strong

Cronbach's Alpha, where the result was

between 0.724 to 0.934 (Hair et al., 2014).

For quantitative analysis, we use the SEM

(Structural Equation Model) with Lisrel 8.8,

where the number of samples is at least five

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105

times the number of questions (Hair et al.,

2014).

RESULT AND DISCUSSION

Result

More than half of the respondents (56%)

were aged 17 to 31, and 54% were female

customers. It is slightly different from the

previous testing on Facebook social media,

which showed 78.3% of respondents aged

between 18 to 30 years, and 71.5% of them

are female customers (Carvalho &

Fernandes, 2018). In this case, 57 different

brands are represented. Among the brands

chosen by customers, the most mentioned

(more than five times) are Nike (17%),

Adidas (16%), Apple (16%), H&M (9%),

Uniqlo (9%), Executive (4%), Gucci (4%),

Buccheri (3%) and Zara (3%).

The construct validity measurements are

acceptable and declared valid, as most

indicators on each variable have a loading

factor of more than 0.50 (Hair et al., 2014).

There is only 1 (one) indicator, the first and

second indicators of the Customer

Interactivity variable (CIT1 and CIT2) have

loading factors below 0.50, namely 0.46 and

0.48. The results of the calculation of

construct reliability (CR) and variable

extracted (VE) are good, where the construct

reliability value must meet reliability

requirements with CR above 0.60 and VE

values above 0.50 (Hair et al., 2014).

Table 1. Validity and Reliability Test

Variables

CIV

0.766

0.450

0.806

0.584

CIT

0.604

0.351

CFE

0.832

0.634

WOM

0.866

0.619

CCS

0.887

0.723

0.918

0.737

0.819

0.603

CBE

0.940

0.723

CLO

0.908

0.713

Table 2. Goodness of Fit

Items

Result

Items

Result

/df

2.07

AIC

1448.5

585

CAIC

1954.51

Chi-

Square

1212.5

NFI

0.96

RMSEA

0.074

Critical N

115.24

ECVI

7.35

GFI

0.75

Based on the conformity test analysis,

most showed an excellent fit (Table 2). Thus,

it is an overall fit for the model, although

some are at the marginal fit level. The path

results are in Figure 2 and Table 3.

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Figure 2. Result Path Diagram

Table 3. Hypotheses Testing

Hypothesis Statement

T-

Value

Results

Customer involvement

increases CBE

8.34

Supported

Customer involvement

increases customer

participation

5.97

Supported

Customer involvement

increases customer

flow experience.

-0.2

Not

supported

Customer participation

increases CBE.

-1.44

Not

supported

Customer participation

increases customer

interactivity

4.74

Supported

Customer interactivity

increases CBE.

-3.15

Not

supported

Customer interactivity

increases the customer

flow experience

3.45

Supported

Customer flow

experience increases

CBE

3.02

Supported

Customer flow

experience increases

cumulative customer

satisfaction.

2.03

Supported

H10

Customer involvement

increases cumulative

customer satisfaction.

5.18

Supported

H11

CBE increases

cumulative customer

satisfaction.

-3.21

Not

supported

H12

CBE increases

customer commitment

14.25

Supported

H13

CBE increases

customer trust

15.47

Supported

H14

CBE increases WOM

referrals

3.27

Supported

H15

Customer cumulative

satisfaction increases

customer loyalty

-0.42

Not

supported

H16

Customer commitment

increases customer

loyalty

3.79

Supported

H17

Customer trust

increases customer

loyalty

3.10

Supported

H18

Customer loyalty

increases customer

WOM referrals

2.57

Supported

Discussion

This research aims to identify and examine

the main drivers of CBE processes and

integrate them into a comprehensive model.

In Figure 1, customer involvement is

independent, while other variables are

dependent. According to previous studies,

customer involvement and customer flow

experience are the main drivers of CBE

(Carvalho & Fernandes, 2018; France et al.,

2016). The main driver of CBE is customer

involvement and customer flow experience.

In this case, when customers increasingly feel

that a brand is attractive, better, and

necessary, they will be more excited and

continue using it.

CBE increases customer commitment and

customer trust and increases customer WOM

referrals. Thus, it supports that close brand

engagement generates customer trust and

commitment and encourages customers to

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spread it on social media. (Carvalho &

Fernandes, 2018; France et al., 2016;

Niyomsart & Khamwon, 2016). Someone

who feels enthusiastic, proud, and enjoys

interacting with a brand that never

disappoints will find it difficult to switch to

another brand, even if it is cheaper. They will

also voluntarily tell others via Instagram

about the good impression of the brand.

Customer involvement increases customer

participation and interactivity and further

encourages the formation of a customer flow

experience. For example, brand-related

customer involvement in content perceives

higher participation and interactivity with the

brand community. Similarly, customers who

actively participate in the community are

more likely to feel better interactivity with

Instagram's virtual social community and

consequently experience flow, i.e., become

entirely immersed in Instagram's virtual

social gathering and enjoy it.

Customer flow experience increases

cumulative customer satisfaction, which

aligns with previous studies (Abdirahman et

al., 2018; Altunel & Kocak, 2016; Khan et

al., 2015). Customer involvement increases

cumulative customer satisfaction and has

been proven to support previous research

(Altunel & Kocak, 2016). The test results

found that cumulative customer satisfaction

is greater, informing cumulative customer

satisfaction compared to customer

involvement. Customers who increasingly

feel that a brand is better, attractive, and

means a lot to them will feel more satisfied.

Likewise, customers are also increasingly

happy when getting their experience about

the brand through Instagram social media.

Figure 1 shows that customer trust

significantly influences the loyalty (Afriani et

al., 2019; Ellonen et al., 2010). Likewise,

committed customers will increase their

loyalty to a brand. Compared to customer

trust, it turns out that customer commitment

is more significant in increasing customer

loyalty. It shows that customers already

attached to the brand will trust or commit. It

can lead customers to make repeat purchases

or use the brand continuously. In addition,

customer loyalty increases customer WOM

referrals (H18 accepted). Customers who

have made purchases continually will tell

more people through Instagram social media

about this brand than any other brand in

detail, give a good impression, and proudly

tell others that they have used it. It follows the

theory and studies before (Niyomsart &

Khamwon, 2016).

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Customer participation did not increase CBE,

and customer participation turned out to have

a negative but not significant effect on CBE.

Contrary to the previous invention, customer

participation increased CBE (Chen & Raab,

2014; Dessart, 2015; Solem & Pedersen,

2016). It supported who conducted his

research on Facebook social media that

explained the nature of fluctuations in

customer participation in the brand hence

participation does not directly increase CBE

(Carvalho & Fernandes, 2018). It also

supports Quach et al. (2019) in their research

in America, which found that customer

participation did not significantly affect

customer engagement. Customer

participation refers to customer engagement

in product development, including

information, resources, consumer-provided

efforts, and cooperation with companies on

Instagram. When customers see other

people's comments about a brand, contribute

to brand content, and spread information

about a brand on Instagram, it turns out that

it does not necessarily make customers bond

with a brand. For example, some customers

give a negative statement about one of the

products, such as the Zara brand, on their

Instagram accounts. All Instagram members

of the Zara brand community can see it.

Despite actively participating, customers

who are members of the brand feel they need

a bond to continue using it. Although

customer participation increases, it will not

make the customer brand bound if it does not

provide benefits as expected.

Likewise, with customer interactivity proven

not to increase CBE, customer interactivity

negatively affected CBE. It differs from

previously stated, where customer

interactivity is proven to increase CBE

(Carvalho & Fernandes, 2018; France et al.,

2016). However, it supports Soares et al.

(2019), where high activity levels negatively

influence customer engagement in the

number of likes and comments of social

media users. In addition, when customers

interact by responding to other people's posts

to build relationships and social interactions,

it encourages them to respond and share

additional information in the brand

community. For example, a customer's post

or question can immediately get a reply from

someone else. In that case, this seamless set

of responses will make the customer

subjectively feel the enjoyment, engagement,

and time distortion. However, if the opposite

happens, as Zhao (2019) said, if marketers

respond lowly, customers assume the brand

community ignores their needs and may feel

Unik Dwi Lestari et al. / ASEAN Marketing Journal © June (2022) Vol. XIV No. 1

109

less happy not to form attachments with

customers. Although customers interactively

communicate with brands on Instagram

social media and consider it sensitive to their

needs, it does not increase their bond with the

brand. This is likely because the company

provides a place for customers to interact

with the brand. Still, the company does not

plan the foundation for customers to

participate and interact well, consequently

providing random and unsystematic feedback

handling over time that makes customers feel

disappointed, resulting in no bond to the

brand and can even decrease attachment to

the brand.

Customer involvement does not increase

customer flow experience. Customer

involvement has a negative but insignificant

effect on customer flow experience, not

following previous findings (Altunel &

Kocak, 2016). It states that customer

involvement increases the customer flow

experience. Actively engaged customers will

think the brand is better, meaningful,

engaging, and essential. Still, even though

active on social media, Instagram is not

necessarily getting a stream of positive

experiences. Positive effects include

increasing satisfaction, improving

exploratory behaviour, and motivating

instinctive interest, while adverse effects

contain excessive involvement and even

addiction (Wang et al., 2015). It turns out that

studies conducted for well-known brands of

the upper-middle class in Indonesia showed

that through social media (Instagram),

customers get a negative stream of

experiences. It may happen because when

customers surf social media, Instagram

makes them complacent or too engrossed, so

they forget other things, including their

original thoughts, to find a brand.

CBE does not increase cumulative customer

satisfaction, and it turns out that CBE

negatively affects cumulative customer

satisfaction. It is not in line with the

previously said that CBE increases

cumulative customer satisfaction (Carvalho

& Fernandes, 2018; Solem & Pedersen,

2016). Still, it supports Chen & Tsai (2008),

who has observed that customers with high

engagement at some point will reduce their

level of satisfaction. For someone proud,

enthusiastic, happy, and has used a particular

brand for a long time, happiness can

eventually decrease. It can happen because it

is influenced by several things, such as

economic and social factors, boredom, a

sense of challenge to try a new brand, and so

on, that motivate customers to use a brand.

Unik Dwi Lestari et al. / ASEAN Marketing Journal © June (2022) Vol. XIV No. 1

110

So, the effect of satisfaction on different

engagement levels may differ in all service

contexts; it may depend on the customer

engagement experience that motivates the

customer. Customers can feel excited and

proud to engage in Instagram social media

about a brand, but not necessarily by getting

attached to satisfaction. For example,

customers are very fond of Rolex watches

and have used them for a long time. When it

appears, other watch brands where friends

use the brand will be affected to switch to the

new brand due to social considerations.

Customer cumulative satisfaction does not

result in customer loyalty. It turns out that

cumulative customer satisfaction has a

negative but not significant effect on

customer loyalty, so it does not support some

previous observations that get cumulative

customer satisfaction results in the customer

loyalty (Abdirahman et al., 2018; Khan et al.,

2015; Kim & Lee, 2017; Nurlitasari & Syah,

2016; Ramaseshan et al., 2017; Saulina &

Syah, 2018; Seesaiprai, 2016; Suhendar &

Ruswanti, 2019). It is in line with Thakur

(2019) when testing mobile apps for

shopping and travel planning, where the

satisfaction-loyalty relationship is not linear.

Similarly, customer satisfaction does not

guarantee customer loyalty (Mittal et al.,

1998). It can happen if customers see no

improvement in brand service based on their

input which then does not form customer

bonds with the brand, so customers do not

become loyal. For example, a satisfied

customer provides feedback for improvement

through the brand community on Instagram

social media but has yet to respond as

expected. The customer could finally stop

using the brand and switch to another brand.

In addition, Schiffman & Kanuk (2007), in

their book on Customer Behavior, divides

customer segmentation related to satisfaction

into five types, namely (a) loyalist: the type

of customer who is very satisfied, trusts the

brand, has a positive word of mouth

promotion and also attracts other customers

(b) defectors: who are almost dissatisfied and

change or switch to another brand (c)

terrorist: People who are below the level of

satisfaction and are a source of negative word

of mouth for brand (d) hostages: these are

customers who are unwilling to relate to

being forced to deal with a brand due to a

particular brand monopoly or company(e)

mercenaries: the kind of customers who are

satisfied with the brand but they can switch to

another brand if it seems profitable or out of

a strong desire towards another brand.

Simply put, they do not care about any brand

Unik Dwi Lestari et al. / ASEAN Marketing Journal © June (2022) Vol. XIV No. 1

111

but keep switching to other brands based on

other benefits or reasons. From the results of

testing on H14, the type of satisfaction of

middle to upper-class customers who use

products such as Zara, Nike, H&M, Adidas,

Gucci, Apple, Buccerri, Uniqlo, Rolex,

Executive, and other brands and are active on

Instagram social media in Indonesia is among

the types of satisfied customers. However,

they will quickly switch to other products that

feel more valid or if there are other reasons to

be loyal customers. For example, little

change in price results in consumer

satisfaction, and as a result, customers remain

faithful to the brand. However, if the product

is offered at a low price but fails to meet the

desired product needs, it will not build

customer loyalty to a brand.

This study's results align with the opinion that

the dimensions of customer loyalty are

cognitive, conative, affective, and action

(Allan & Raharso, 2008). Cognitive loyalty is

a loyalty based on brand trust alone. Conative

loyalty is a state of loyalty that contains a

commitment to buy, which is the definition of

loyalty. Affective loyalty is a fondness or

attitude toward a brand developed based on

cumulatively fair use opportunities. Finally,

loyalty action is the commitment to the act of

buying back or reusing a product or service.

Thus, customers in Indonesia are primarily

grouped in cognitive and active loyalty,

prioritising trust and commitment over likes

or satisfaction with certain products. For

example, customers are satisfied with Apple

brand phones because Apple is in line with

their expectations, but they will not

necessarily be loyal and use Apple brand

products continuously. It can happen because

of various things, such as cheaper brands or

customers being disappointed with the Apple

brand. So, to be loyal and make continuous

purchases, middle to upper-class customers

in Indonesia need trust and commitment to a

brand.

The study's findings have important

implications concerning brand-building

strategies, shaping satisfaction, trust, and

commitment to brand loyalty in the short and

long term through disseminating information

on social media such as Instagram. Especially

for the middle-high product brands in

Indonesia, such as Zara, Nike, H&M, Adidas,

Gucci, Apple, Buccerri, Uniqlo, Rolex,

Executive, and others. I have added table 3 to

explain the hypotheses. In increasing the

dissemination of information on Instagram

about the product, marketers should not

expect too much for the long-term effects of

customer participation and customer

112

interactivity. However, it is necessary to

focus on customer interactivity and creating a

flow of customer experience to become

engaged to form WOM referrals on

Instagram social media. In addition, it will

develop customer trust and commitment,

making customers more loyal to the product.

Customers willing to participate and interact

in brand relationships (e.g., state their needs,

suggest service improvements, and provide

feedback) are sometimes brand-bound.

Therefore, when a company offers a

customer participation option, it must decide

carefully about a customer participation

strategy based on understanding the product

and the likelihood of failing or exceeding

customer expectations. The dissemination of

information or WOM referrals by customers

through social media, Instagram, will be very

effective. The reach can be extensive and, of

course, cheaper than placing ads.

The results of this study inform academics

about the influence of customer involvement,

participation, interactivity, and flow

experience on CBE, which will result in

cumulative satisfaction, trust, and

commitment directly from WOM referrals or

indirectly through loyalty. In addition, it is

hoped that this research will be helpful for the

development of science in consumers.

Besides that, this research provides input to

management or marketers in determining

market strategies to increase customer

engagement so that customers become loyal

and spread good information about these

products through Instagram social media.

CONCLUSION

This study recognises that customer

involvement and customer flow experience

are the main drivers of CBE, which then

becomes a potential driver of WOM customer

referral, customer commitment, and customer

trust. Besides that, customer commitment and

trust will generate customer loyalty, leading

to WOM referrals on Instagram social media.

Research on Instagram users in Indonesia

proves that active customers on Instagram

will voluntarily and unconsciously spread

their opinion. By disseminating this

information, marketers in Indonesia can use

Instagram as a marketing tool. Of course, it

must be carefully managed to form trust and

commitment and increase loyalty and word-

of-mouth. By knowing these customers'

characteristics, marketers can implement an

effective marketing strategy on Instagram

social media.

113

This study has limitations and shows some

directions to improve the following research.

The first limitation is that the research data

only relies on one social networking site

(Instagram) in Indonesia. In comparison,

social media users still have more users in

Indonesia like Facebook and YouTube. In the

future, researchers should investigate this

topic on other social media networks. The

second limitation is that the study focused on

middle to upper-class and above-class

tangible product brands.

Meanwhile, there are service brands that have

different characteristics. In the future, other

research can investigate service brands.

Third, in this case, it has yet to discuss the age

difference. Further research can analyse and

compare millennial and older customers'

behaviour because they have different

interests in using social media.

114

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Appendix

Measurement Items

Customer involvement from Cheung & To (2011):

• This brand is better than other brands.

• This brand is attractive compared to other brands

• This brand means a lot to me

• This brand is important to me

Customer participation from Muntinga, Moorman, & Smit (2011):

In the social media platform Instagram about the brand, …

• I saw other people's comments about this brand on Instagram.

• I contribute to this brand's content on Instagram.

• I spread information about this brand on Instagram.

Customer interactivity from Wu (2006):

• When I search for this brand, I am not influenced by others through Instagram and social

media platforms.

• I can communicate with the company directly to ask more about this brand.

• I consider social media platforms sensitive to my need for brand information.

Customer flow experience from Mathwick & Rigdon (2004):

• When I use Instagram, I need to remember other things.

• I enjoy searching on Instagram for this brand.

• I enjoy searching for this brand on Instagram.

Customer word-of-mouth (WOM) referrals from Kinard & Capella (2006):

• I have told more people about this brand on Instagram than any other.

• On Instagram, I tell people about this brand in detail.

• On Instagram, I have a good impression of this brand.

• On Instagram, I am proud to say to others that I use this brand.

Customer cumulative satisfaction (CCS) from Olsen & Johnson (2003):

• On Instagram, this brand is very close to the ideal.

• On Instagram, I am satisfied with this brand.

• On Instagram, my expectations were met by this brand.

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Customer Brand Engagement from Dwivedi (2015)

• I am passionate about using this brand

• I can continue to use this brand for a long time.

• I feel enthusiastic about this brand

• I am proud of this brand

• I get carried away when I interact with this brand.

• I enjoy interacting with this brand.

Customer commitment from (Sharma & Rather, 2016) and (Rather, 2017):

• I love this brand.

• I have a special relationship with this brand.

• It will be challenging for me to switch from this brand.

• Other brands are more expensive than this brand.

Customer Loyalty from (Sharma & Rather, 2016) and (Rather, 2017):

• When I need this product, I will buy this brand.

• I intend to continue buying this brand.

• I am loyal to this brand.

• I am willing to pay a higher price for this brand than other brands.

Customer Trust from Ballester, Munuera, & Yague (2003):

• This brand name lived up to my expectations.

• This brand is a brand that has never let me down.

• This brand is honest and sincere in dealing with my interests.

• This brand will try its best to satisfy me.