Understanding brand loyalty and disloyalty formation among consumers' of short life-cycle products

276 Pages·2015·3.41 MB·English

by  Ramachandran, Sunder

G OULU 2015
G 78
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UNIVERSITY OF OULU P.O. Box 8000 FI-90014 UNIVERSITY OF OULU FINLAND
ACTA
A UNIVERSITATIS OULUENSIS
A C T A U N I V E R S I T A T I S O U L U E N S I S C
T
A
G
OECONOMICA
Sunder Ramachandran
Professor Esa Hohtola S UNDERSTANDING BRAND
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n
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e LOYALTY AND DISLOYALTY
r
University Lecturer Santeri Palviainen R
a
m FORMATION AMONG
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c
Postdoctoral research fellow Sanna Taskila h
a CONSUMERS’ OF SHORT
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d
r
a LIFE-CYCLE PRODUCTS
Professor Olli Vuolteenaho n
University Lecturer Veli-Matti Ulvinen
Director Sinikka Eskelinen
Professor Jari Juga
University Lecturer Anu Soikkeli
Professor Olli Vuolteenaho
UNIVERSITY OF OULU GRADUATE SCHOOL;
UNIVERSITY OF OULU,
OULU BUSINESS SCHOOL,
Publications Editor Kirsti Nurkkala
DEPARTMENT OF MARKETING
ISBN 978-952-62-0975-3 (Paperback)
ISBN 978-952-62-0976-0 (PDF)
ISSN 1455-2647 (Print)
ISSN 1796-2269 (Online)

ACTA UNIVERSITATIS OULUENSIS
G Oeconomica 78
SUNDER RAMACHANDRAN
UNDERSTANDING BRAND LOYALTY
AND DISLOYALTY FORMATION
AMONG CONSUMERS’ OF SHORT
LIFE-CYCLE PRODUCTS
Academic dissertation to be presented with the assent of
The Doctoral Training Committee of Human Sciences,
University of Oulu for public defence in the Arina
auditorium (TA105), Linnanmaa, on 5 November 2015,
at 12 noon
UNIVERSITY OF OULU, OULU 2015
Copyright © 2015
Acta Univ. Oul. G 78, 2015
Supervised by
Professor Pauliina Ulkuniemi
Professor Veikko Seppänen
Associate Professor John Meewella
Reviewed by
Professor Liisa-Maija Sainio
Professor Lauri Frank
Opponent
Professor Virpi Kristiina Tuunainen
ISBN 978-952-62-0975-3 (Paperback)
ISBN 978-952-62-0976-0 (PDF)
ISSN 1455-2647 (Printed)
ISSN 1796-2269 (Online)
Cover Design
Raimo Ahonen
JUVENES PRINT
TAMPERE 2015
Ramachandran, Sunder, Understanding brand loyalty and disloyalty formation
among consumers’ of short life-cycle products.
University of Oulu Graduate School; University of Oulu, Oulu Business School, Department of
Marketing
Acta Univ. Oul. G 78, 2015
University of Oulu, P.O. Box 8000, FI-90014 University of Oulu, Finland
Abstract
This study examines the formation of brand loyalty and disloyalty behaviours among consumers
of short life-cycle technology products. Today, the life cycle of technology products have become
shortened due to rapid pace of innovation leading to introduction of new and innovative products
at shortened intervals. Such technological changes create a dynamic market, induce uncertainties
among the consumers in the usage leading to stress and anxiety and development of coping
strategies to deal with such situations. This study attempts at an understanding of the formation of
brand loyalty and brand disloyalty behaviours from the consumer’s lived consumption
experiences. The importance of loyalty and disloyalty have long been recognized in marketing, by
academic and practitioners alike and assumes even more salience in today’s highly dynamic and
competitive market environment.
This study adopts the qualitative approach based on a constructivist and interpretive
perspective using narrative strategy of inquiry through semi-structured and open-ended interviews
to bring forth the experiences and meanings emanating from the consumption narratives. A
theoretical framework was developed and employed to aid in the analysis of the empirical data.
Based on the lines of the theoretical framework, three different phases of consumption, pre-
adoption, adoption and post-adoption were examined which brought forth rich details of
consumption experiences and outcomes during each consumption phase.
This study interestingly finds consumers to be more brand loyal than disloyal. This supports a
school of thought which endorses the existence of brand loyalty and contradicts another school of
thought which profess the decline of brand loyalty. The study also reveals the factors which cause
brand loyalty, brand disloyalty, divided brand loyalty and no brand loyalty tendencies in the
context of short life-cycle technology products providing insights to both practitioners and
academics. And more interestingly, this study finds short life-cycle products influencing the brand
disloyalty and divided brand loyalty tendencies significantly, if not most significantly. This is
important in view of today’s highly changed, dynamic and competitive marketplace and in the
context of short life-cycle technology products.
Keywords: adoption, brand disloyalty, brand loyalty, consumer behaviour, consumption
experience, consumption narratives, post-adoption, pre-adoption, short life-cycle
products

Ramachandran, Sunder, Brändilojaalisuuden ja epälojaalisuuden kehittyminen
lyhytikäisten kuluttajatuotteiden käyttäjien keskuudessa.
Oulun yliopiston tutkijakoulu; Oulun yliopisto, Oulun yliopiston kauppakorkeakoulu,
Markkinoinnin yksikkö
Acta Univ. Oul. G 78, 2015
Oulun yliopisto, PL 8000, 90014 Oulun yliopisto
Tiivistelmä
Tutkimuksessa tarkastellaan brändilojaaliuden ja -epälojaaliuden kehittymistä teknologiainten-
siivisten kuluttajatuotteiden käyttäjien keskuudessa. Sellaisten tuotteiden käyttöikä on lyhenty-
nyt uusien tuoteinnovaatioiden ja -ratkaisujen tullessa markkinoille yhä nopeammalla tahdilla.
Teknologiamuutokset johtavat dynaamisiin markkinoihin ja samalla kuluttajien huoli ja pyrki-
mykset hoitaa tuotteiden valinta- ja käyttötilanteita kasvavat. Tutkimuksessa pyritään ymmärtä-
mään ja tulkitsemaan brändilojaaliuden ja -epälojaaliuden muodostumiseen liittyviä tekijöitä. Se
on yhä tärkeämpää paitsi tutkijoille, myös liiketoiminnan harjoittajille.
Tutkimukseen otetaan konstruktiivinen mutta tulkitseva ote, perustuen kuluttajien kertomiin
kokemuksiin, joita kerättiin sekä avoimilla että puoliavoimilla haastatteluilla. Hankittu narratii-
vinen tutkimusaineisto analysoitiin aiempien tutkimusten perusteella muodostetun teoreettisen
viitekehyksen avulla niin, että tuotteen valinta, hankinta ja käyttö jaettiin kolmeen periaatteelli-
seen vaiheeseen. Ne ovat käyttöön omaksumista edeltävä, käytön omaksumisen ja käyttöön
omaksumisen jälkeinen vaihe. Tutkimusaineistosta saatiin kehikon avulla analysoituna esille
rikas tuotteen valintaan ja käyttöön liittyvä kulutuskokemusten joukko koskien brändilojaaliutta
ja -epälojaaliutta.
Tutkimuksen mielenkiintoinen tulos on, että kuluttajien brändilojaalius on suurempi kuin
epälojaalius. Se vahvistaa näkemyksen, että brändilojaaliuden merkitys ei ole vähentynyt eikä
etenkään loppunut. Tutkimuksesta tulee silti esiin myös tekijöitä, jotka vaikuttavat lojaaliuden
ohella jakaantuneeseen lojaaliuteen tai lojaaliuden puuttumiseen lyhytikäisten kuluttajatuottei-
den tapauksessa. Kaiken kaikkiaan tekijöiden jäsentäminen, näkyväksi tekeminen ja analysointi
tarjoavat kiinnostavia näkemyksiä tutkijoille, liiketoiminnan harjoittajille ja muille tahoille. Eri-
tyisesti jakaantuneeseen lojaaliuteen ja epälojaaliuteen vaikuttavat tekijät ovat tärkeitä lyhytikäi-
sille teknologiaintensiivisille kuluttajatuotteille, joiden markkinat ovat erittäin dynaamiset ja kil-
paillut.
Asiasanat: brändi, epälojaalius, kuluttajakäyttäytyminen, kulutuskokemukset, lojaalius,
lyhytikäiset kuluttajatuotteet, tuotteen omaksumisen vaiheet

Acknowledgements
I pen these words with combined feelings of relief and a deep sense of gratitude to
all those who made it possible for me to reach this stage. I deeply & gratefully
acknowledge the stellar role of my supervisors who provided invaluable guidance
and support throughout this journey. My principal supervisor, Professor Pauliina
Ulkuniemi, believed in me from the beginning and in her own inimitable style
guided, encouraged and showed me the path. Her critical evaluations were
delivered in encouraging words making one feel enthused and motivated. Despite
her extremely busy schedule, she was always there for me. I value her judgement
and the advice provided throughout this research journey and admire her patience,
cool and composed countenance. My eternal gratitude to Professor Ulkuniemi for
helping me realise this cherished goal.
I am equally fortunate and privileged to have been guided and advised by my
second supervisor, Professor Veikko Seppanen, who was meticulous in the review
of my documents and ensured that I adhered to the “right” way of doing things. His
critical and appreciative comments helped me to see the errors and then find a
suitable direction. He too, was there for me all the time. In fact, I was amazed at
the alacrity he used to respond to my emails even late at night! It is a great feeling
to know that there is someone at the other end, who will address your concerns
instantly, especially for a student who is based out of Oulu and in a distant land. He
also provided the Finnish translation of the abstract for this thesis. Thank you
Professor Seppanen for being such a great guide and providing so much support.
My third supervisor, Dr. John Meewella, donned the mantle of a helpful friend who
would encourage and coax me ever onwards, enabling me to maintain the
continuity and momentum of my work. Thank you Dr. Meewella for introducing
me to the Oulu Business School and extending your supportive hand at all times.
Pursuing doctoral studies from a distant land without being amidst a vibrant
university atmosphere, culture and fraternity holds its challenges wherein one does
not have the advantages of interacting much with peer groups, or exchanging
perspectives and views. It goes to the credit of my three supervisors that they
mitigated this deficiency to a great extent by keeping the communication channels
open at all times and being there always.
I am grateful to the two official examiners Professor Liisa-Maija Sainio from
Lappeenranta University of Technology and Professor Lauri Frank from the
University of Jyvaskyla, for examining my manuscript thoroughly and suggesting
critical areas for improvement. Professor Frank pointed out areas which had not
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crossed my mind earlier, while Professor Sainio’s kind comments helped me
improve my reasoning and other areas. My warm thanks go to Professor Kimmo
Alajoutsijarvi, for providing me and other doctoral aspirants from the UAE with
the opportunity to study at Oulu Business School. Without his support, we may not
have had the chance of pursuing our doctoral journey at a Finnish university.
I thank all the informants, who unfortunately cannot be named, for agreeing to
participate in this study and sharing with me their consumption stories. I thank Dr.
Maqsood from the University of Alain, UAE, and Dr. Shahid Yamin from Sultan
Qaboos University, Oman, for their training sessions in the very initial stages. I
extend my thanks to my friends Dr. Cheryl Lin, and Dr. Asadullah Khan for
showing their interest in my work. By virtue of “having been there and done that,”
their views helped a great deal. I would also like to thank my other doctoral friends
for being part of the interesting academic sessions held in the UAE under the
support of the Oulu Business School.
This study would not have been possible if I had not received unwavering and
unstinted support from my life partner and dear wife, Uma Sunder, who stood by
me like a rock through thick and thin. The course of this research journey was quite
a roller coaster ride with very high and low moments. There were times when I was
on top of the world with a great job and a good salary to go with it and the very
next moment I hit a nadir with no job and no remuneration. This happened at a time
when the world was going through the throes of economic recession. During these
times my wife stood by me, neither swayed by the bounties nor brought down low
by the adversities. She continued to believe and affirm that I would “complete this
study successfully.” Words of thanks are too meagre to express the feelings of
gratitude and admiration I have for her. I dedicate this book to her. I also thank my
son, Shriram for his words of encouragement. I also thank my family members Mr
and Mrs Krishnamurthy for extending their tacit support throughout.
Finally, I dedicate this thesis in memory of my late parents. My father who
passed away in 1991 was a liberal and broad minded person from a conservative
family who always encouraged me towards higher studies. He used to say, “Don’t
worry, I will support you for further studies.” If he is watching me from his
heavenly abode, I am sure he will be truly pleased. So would be my mother, who
passed away in November 2014, and had seen me diligently pursuing this study.
Above all, I dedicate this book to god without whose generous and kind blessings
I may never have travelled this path.
Since 2010, working on the thesis has been an inseparable and integral part of
my life occupying most of my mind and time. With this doctoral journey coming
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