Brand and digital touchpoints as the competitive edge for the service firms in the omni-channel. I am truly appreciative of her valuable advice and recommendations to help me complete this research project. It was informative to learn and receive extensive knowledge from all of you that I could apply in the work environment.
The main purpose of this research is therefore to determine the relationship of digital touch points, namely functional touch points, social touch points and community touch points on brand image towards customer loyalty intention in the financial services industry in Malaysia. Last but not least, the outcome of this research aims to provide beneficial insights into the brand and digital touchpoints' impact on customer loyalty from theoretical and practical perspectives.
INTRODUCTION
- Problem Statement
- Research Questions
- General Question
- Specific Question
- Research Objectives
- General Objective
- Specific Objective
- Significance of the Study
- Chapter Layout
- Chapter Summary
Based on a survey by McKinsey, it is observed that the quality and availability of digital touch points in some sectors, including financial services, have a positive impact on customer satisfaction (Breuer et al., 2020). Therefore, service firms should focus and invest in touchpoints that matter most to consumers as this can evolve into brand loyalty (Hogan et al., 2005). Information is exchanged between these touchpoints implemented to provide an end-to-end customer experience (Payne et al., 2017).
According to Straker et al. 2015), the researchers identified digital typologies through content analysis of secondary data. 7 Therefore, it is important for service firms to determine and invest in the digital touchpoints that consumers prefer for interaction with the service providers (Barwitz. & Maas, 2018; Hogan et al., 2005).
LITERATURE REVIEW ............................................................... l11
Functional Touchpoints
Social Touchpoints
Community Touchpoints
Brand Image
Customer Loyalty
Review of Relevant Theoretical Framework
Proposed Theoretical Framework
Hypotheses Development
- The Relationship of Functional Touchpoints and Brand
- The Relationship of Social Touchpoints and Brand Image
- The Relationship of Community Touchpoints and Brand
Chapter Summary
Research Design
- Descriptive Research
- Quantitative Research
Data Collection Method
- Primary Data
- Secondary Data
Sampling Design
- Target Population
- Sampling Frame and Location
- Sampling Elements
- Sampling Technique
- Sampling Size
Research Instrument
- Questionnaire
- Questionnaire Design
Construct Measurement
- Origin of Construct
Pilot Test
Data Processing
Data Analysis
- Descriptive Analysis
- Inferential Analysis
- Reliability Analysis
- Pearson’s Correlation Coefficient Analysis
- Simple Linear Regression Analysis
- Multiple Regression Analysis
Chapter Summary
Descriptive Analysis
- General Information
- Age Group
- Highest Education Level
- Employment
- Number of hours spent on Internet per day
- Type of device most used to surf the Internet
Descriptive Statistics
- Reliability Test
Inferential Analysis
- Pearson Correlation Analysis
- Multiple Regression
- Simple Linear Regression
Hypotheses Testing
Chapter Summary
Summary of Statistical Analyses
Most respondents are either retired, not in the workforce or in a professional position. In addition, it was also found that most of the respondents often use smartphones to browse the Internet compared to other devices. 62 roughly a quarter of respondents use a computer as their most used device to surf the Internet.
The independent variables of functional touchpoints, social touchpoints and community touchpoints have a significant relationship against the brand image towards customers' loyalty intention. Besides that, the results also showed strong correlation between brand image and customers' loyalty intention. Moreover, it was found through multiple regression analysis that 43.8% of dependent variable (brand image versus customers' loyalty intention) can be explained by independent variables functional touch points, social touch points and community touch points.
Later, interactions through these touchpoints will strengthen customer relationships and build brand image (Sundar, 2018). The p-value of the independent variables of functional touchpoints (p < 0.01), social touchpoints (p < 0.05) and total touchpoints (p < 0.001) indicates a strong association with brand image. Customers who are strongly connected through community beliefs tend to build a stronger brand image (Fournier & Lee, 2009).
The p-value is less than 0.001, which represents a significant relationship between brand image and customer loyalty intention. This is supported by a study in China which found that brand image has a positive effect on customer loyalty intentions in the mobile phone market (Ogba & Tan, 2009). Another study has the same results where brand image was found to be positively correlated with customer loyalty in the telecommunications industry (Sirapracha & Tocquer, 2012).
Discussions of Major Findings
- The relationship between functional touchpoints and brand
- The relationship between social touchpoints and brand image
- The relationship between community touchpoints and brand
- The relationship between brand image and customers’ loyalty
The brand experience from the start of a customer journey is essential as it drives brand perception and success for a service company (Lehmann et al., 2020). Previous studies of functional communication channels and brand image have shown significant and positive directional relationship (Rahi et al., 2017; Voorveld et al., 2013). H2 specifies that social touch points have a positive direct effect on the brand image of a service company in Malaysia.
In addition, social media has been found to provide service firms with free “earned” media through their customers' recommendations and positive comments, which then drive positive brand image and customer loyalty intention (Bughin, 2015). When a service firm has strong social media communications, this can lead to a stronger positive effect on brand image compared to traditional media (Bruhn et al., 2012). H3 suggested that community touchpoints have a direct positive effect on a service firm's brand image in Malaysia.
In addition, L'Oréal's consumer beauty brand Garnier engaged celebrity bloggers to increase their brand image through a community touchpoint (Fournier & Lee, 2009). Brand image requires proper planning and protection, as it can serve as an intangible asset of a service company, especially when it is in a competitive market where there is no differentiation between products or services. A strong brand image builds trust among customers, which can result in customer loyalty and increased profitability (Rahi, 2016).
This is supported by previous research where brand image was found to have a positive relationship with customer loyalty in the mobile phone market in China (Ogba & Tan, 2009). Branding is crucial and remains relevant to customers to this day, although changing their lifestyle has more touch points for interactions (Lehmann et al., 2020). According to Aufreiter et al. 2003), branding is not only about showing the functional features and benefits, but it should also include image of the brand that provides a service firm with competitive advantage and customer loyalty.
Implications of the Study
67 Service managers can plan and create customer journeys by incorporating community touchpoints that have the most significant value to the brand's image. Online brand communities were found to be the most important channel for service companies as it acts as a platform for customers to share their brand experiences and read reviews from other consumers related to the brand. It is important for service companies to take note of the ongoing communication through these platforms to understand what are the expectations of their customers and continuously improve their services to boost brand image and ultimately achieve customer loyalty (Simon et al., 2016).
Finally, in terms of theoretical implication, it was found that all three digital touchpoints play a significant role on brand image in relation to customer loyalty intention in the financial services industry. In addition, this study has also provided insights into the relationship between digital touchpoints on brand image, which is less explored.
Limitation of the Study
However, the results do not reflect a specific stage of the customer journey and this may limit the full understanding of the impact of digital touchpoints on customer brand image and loyalty intent. The findings of quantitative research may provide a general overview rather than in-depth, as respondents were asked to give their opinion based on the limited answers available to the questionnaire and the analysis was based on numerical data. In contrast, digital adoption was found to be still low among premium segment customers who generate higher revenues for the bank (Chan et al., 2019).
Therefore, qualitative research through interviews can provide a more meaningful analysis of the opinions and experiences of these premium customers. Having identified these limitations in this study, there are several recommendations for future research that will be discussed in the next section.
Recommendation for Future Research
Managers of service companies will also be able to have better insight into changes in the market so that they can stay ahead of the competition. In addition, future research should focus on examining the impact of digital touchpoints on brand image in relation to customer loyalty intention in the context of customer journey stages. McKinsey research has indicated that the customer journey leads to anticipated desired outcomes that contribute to customer satisfaction.
It was found that most customers were dissatisfied not because of touchpoints, but rather interaction experience across customer journeys (Maechler et al., 2016). Thus, understanding the customers' perception of digital touch points and branding at different stages of the customer journey will fill the gap in the current research, where only a general overview was given. As highlighted in the previous section, premium customers contributed higher revenue compared to customers in the general segment.
Essentially, the service firm should try to understand why adoption is still low among premium customers to ensure that they implement communication strategies that are appropriate for this customer group (Chan et al., 2019). The qualitative method is recommended for future research as this may provide more accurate insights into why premium customers are slower to adopt digital touchpoints compared to general customers.
Conclusion
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