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African Journal of Economic and Management Studies

The perceived influence of relationship quality on brand loyalty: An emerging


market perspective
Aobakwe Ledikwe, Mornay Roberts-Lombard, Hendrik Baltus Klopper,
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Aobakwe Ledikwe, Mornay Roberts-Lombard, Hendrik Baltus Klopper, (2018) "The perceived
influence of relationship quality on brand loyalty: An emerging market perspective", African Journal of
Economic and Management Studies, https://doi.org/10.1108/AJEMS-04-2018-0113
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Relationship
The perceived influence quality on
of relationship quality on brand loyalty

brand loyalty
An emerging market perspective
Aobakwe Ledikwe, Mornay Roberts-Lombard and Received 26 April 2018
Revised 15 August 2018
Hendrik Baltus Klopper 24 October 2018
Accepted 1 November 2018
Department of Marketing Management, University of Johannesburg,
Johannesburg, South Africa
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Abstract
Purpose – The purpose of this paper is to investigate the extent to which the attitudinal loyalty of customers
of small and medium apparel businesses is influenced by their perceptions of trust, commitment and
satisfaction. In turn, the influence of their attitudinal loyalty on future behavioural loyalty is established.
Design/methodology/approach – A quantitative descriptive research approach was employed and
questionnaires were administered to customers of three selected small and medium enterprise (SME) brands
in the metropolitan city of Gaborone, Botswana. A total of 260 questionnaires were suitable for data analysis.
The interrelationship of the constructs was analysed via structural equation modelling. In addition, the
measurement and structural models were assessed.
Findings – Trust, commitment and satisfaction have a positive and significant influence on the attitudinal loyalty
of SME customers, while attitudinal loyalty has a positive and significant influence on their behavioural loyalty.
Research limitations/implications – The tested model confirms the hypothesised relationships between
SME customers’ trust, commitment, satisfaction, attitudinal loyalty and behavioural loyalty. Attitudinal loyalty
is linked to its three antecedents (trust, commitment and satisfaction) and its outcome, behavioural loyalty.
Practical implications – The findings assist the management of SMEs in understanding how the
cultivation of trust, commitment and satisfaction can foster attitudinal loyalty, ultimately leading to improved
behavioural loyalty.
Originality/value – The current study contributes to new knowledge on the interrelationship of selected
relationship quality dimensions, attitudinal loyalty and behavioural loyalty among SME customers in the
apparel industry of Botswana. Few research studies have examined how attitudinal loyalty relates to its
antecedents and outcome in Botswana, as an emerging African economy.
Keywords Satisfaction, SMEs, Trust, Brand loyalty, Relationship quality, Commitment
Paper type Research paper

Introduction
Since its establishment in the early 1980s, the apparel industry has grown into one of the
key pillars of economic growth of Botswana through contribution to employment creation
and revenue generation among the economically vulnerable (Ministry of Trade and
Industry, 2017). This is because it attracts a wider pool (70 per cent) of entrepreneurs,
employs at least 4,183 semi-skilled workers and produces Botswana’s third-largest export
commodity, thereby providing a ready market for the development of small and medium
enterprises (SMEs) (Ministry of Trade and Industry, 2017). While the importance of the
apparel industry cannot be disputed, SMEs in the apparel industry of Botswana are
currently experiencing a heightened competition for servicing customers, which has
increased the need for relationship building in order to sustain brand loyalty. Because these
SMEs target the same cohort of customers with similar products and services, a
differentiated approach such as building long-term relationships is important to secure loyal
customers. Due to increased competitive pressures among apparel businesses, 85 per cent of African Journal of Economic and
Management Studies
SMEs are struggling to develop defensive approaches to avoid indiscriminate loss of key © Emerald Publishing Limited
2040-0705
customers (Ministry of Trade and Industry, 2017). To survive, therefore, SME brands DOI 10.1108/AJEMS-04-2018-0113
AJEMS should implement marketing strategies such as relationship quality to achieve higher levels
of customer retention and ultimately to enhance their brand loyalty, which will contribute to
the economic stability and longevity of the apparel industry of Botswana.
Especially in a highly competitive environment, SMEs need to develop quality
relationships to strengthen brand loyalty. Originating in relationship marketing theory, the
concept of relationship quality focuses on enhancing the longevity of customer relationships
(Giovanis et al., 2015). Stronger relationships between SMEs and customers can create a
sustained competitive advantage, supporting efforts to fulfil customer needs and enhance
business profitability (Xie et al., 2017).
Relationship quality is held to be a multidimensional construct comprising trust,
commitment and satisfaction (Tajvidi et al., 2017; Van Tonder et al., 2017). Numerous research
studies have explored the interrelationships of these dimensions of relationship quality in
different contexts (Bandara et al., 2017). However, most African studies on the application of
relationship quality to enhance brand loyalty have focused on Nigeria and South Africa, with
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no previous research on the apparel industry of Botswana. For instance, the empirical work of
Izogo (2016a) and Izogo et al. (2017) established the linkage between relationship quality and
brand loyalty within the retail banking sector of Nigeria, while the study of Van Tonder et al.
(2017) proved the significance of the association between relationship quality and behavioural
loyalty amongst luxury motor vehicle users in South Africa. To address this research gap, this
study aims to determine the perceived influence of relationship quality dimensions on
enhancing the brand loyalty of SMEs operating in the apparel industry of Botswana.
The theoretical contribution of this study is its development of an integrated model for
understanding not only the influence of trust, commitment and satisfaction on attitudinal loyalty
but also the relationship between attitudinal loyalty and behavioural loyalty, in the context of an
emerging African market. From a managerial perspective, this study suggests how SMEs in the
apparel industry of Botswana can cultivate the different dimensions of relationship quality to
strengthen customers’ attitudinal loyalty and ultimately behavioural loyalty.
This paper first delineates the theory grounding the study and discusses the key
constructs of the study. The research hypotheses are then outlined and a theoretical model
proposed. The research methodology is explained and is followed by the results, findings,
managerial implications, limitations of the study and future research opportunities.

Literature review
Relationship marketing theory grounding the study
The connection between relationship quality and brand loyalty is grounded in the theory of
relationship marketing. Grönroos (2017) states that relationship marketing is a principle that
seeks to create and maintain value-adding relationships between concerned parties. Payne
and Frow (2017) argue that a good relationship should incorporate a quality component
which creates value for customers and sustains the longevity of the relationship. This is
supported by Sheth (2017), who claims that relationship quality is indispensable in building
brand loyalty through a relationship marketing orientation, as it not only measures the
strength of the relationship but also focuses on emotional bonding and the functional value
of a product or service. The application of this theory to an SME environment means that
businesses should provide excellent services, personalised offerings and added benefits in
order to enhance perceptions of relationship quality and to motivate customers to be loyal
custodians of their brands (Huang, 2015). Brand loyalty can thus be enhanced by the
creation of quality relationships, in accordance with the theory of relationship marketing.

Relationship quality
Lu and Wang (2017) contend that relationship quality refers to the overall judgement of the
strength and depth of the relationship between a business and its customers in fulfilling their
goals, expectations and desires. The principal focus of relationship quality is to develop an Relationship
overarching process that maintains and enhances individualised customer relationships, quality on
resulting in favourable image perceptions (Nguyen and Waring, 2013). Furthermore, brand loyalty
relationship quality is an important component of stable relationships in an SME environment
(Song et al., 2012). These are fostered by creating a harmonious atmosphere in which the SME
gains a better understanding of customers’ goals and preferences, leading to product
development that addresses their needs (Song et al., 2012). In addition, relationship quality
promotes the longevity of customer relationships, leading to increased competitive advantage
and improved business performance (Morgan and Hunt, 1994). Doaei et al. (2011) conclude
that a higher degree of relationship quality enables customers to rely on the integrity and
promises of an SME to enrich the value of the relationship.
According to Athanasopoulou et al. (2013), relationship quality is a multidimensional
concept measured by an array of interrelated factors. However, no consensus has been
reached in literature on the factors that constitute relationship quality (Giovanis et al., 2015).
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In this regard, previous studies of Bandara et al. (2017) and Tajvidi et al. (2017) have argued
that trust, commitment and satisfaction are the main facets of relationship quality. Agariya
and Singh (2011) support this argument, noting that trust, commitment and satisfaction
were the most frequently cited dimensions of relationship quality between 1982 and 2010.
These three variables have been adopted in this study to examine relationship quality.

Trust
Munnukka et al. (2016) note that trust relates to the extent to which the other party in a
relationship can provide objective information in a sincere manner. This notion emphasises that
trust creates feelings of confidence in the claims and promises made by organisations to maintain
the relationship (Van Tonder, 2016). The seminal work of Ndubisi et al. (2011) argues that the
strength and quality of a relationship relies on the trust level: the higher the level of trust, the
stronger the relationship. Trust is vital to the development of SMEs, as it promotes favourable
beliefs that one party acts with integrity, goodwill and truthfulness when serving the other party,
thereby leading to reduced opportunistic behaviour, superior information sharing and greater
perceived value for the relationship (Chen et al., 2017). This view is supported by Morgan and
Hunt (1994) who opine that trust is essential for the development of enduring relationships
because it contributes to constructive dialogue and co-operative problem-solving among SMEs in
order to reduce uncertainty and complexity in the future. Therefore, trust is important in the
relationship building process, as a higher level of trust may indicate the customers’ confidence
that the SME brand will serve their interest (Van Tonder and De Beer, 2017).

Commitment
According to Mpinganjira et al. (2017), commitment refers to the desire to maintain a valued
relationship. Bojei and Alwie (2010) add that commitment exists when the exchange partner
believes that an ongoing relationship with another partner is so important that it warrants
maximum effort to maintain it. Thus commitment represents the highest level of relationship
bonding and is a strong indicator of the longevity of a relationship (Morgan and Hunt, 1994).
From an SME perspective, customers who exhibit a stronger commitment to their relationship
are more willing to cooperate effectively and share credible information, thereby enabling
businesses to sell products at appropriate prices and stimulate consumption of related products,
leading to higher levels of profits and sales (Chen et al., 2017). In line with this argument,
consumers are regarded as highly committed to a relationship when they are willing to put
effort, invest resources and make significant sacrifices in order to maintain their relationship
with the SME (Theron and Terblanche, 2010). This implies that customers will perceive SME
brands to have their interests at heart if they continuously make the required adjustments to
suit their needs and to ensure that their buying experience is worthwhile (Van Tonder, 2016).
AJEMS Consequently, when commitment exists, it helps reduce feelings of vulnerability and creates a
social space for establishing long-term relationships (Mpinganjira et al., 2017).

Satisfaction
Kim et al. (2016) posit that satisfaction refers to a consumer’s overall emotional response to
the entire brand experience following the most recent purchase. This view is emphasised by
Thaichon and Quach (2016), who contend that satisfaction reflects a state of happiness,
fulfilment and pleasure that a customer gets from a brand and its products or services
through their expectations and overall experience with a brand. Thus satisfaction is an
important determinant of customers’ decision to continue or discontinue their relationship
with a business, as it indicates if the perceived product or service performance meets the
desired expectations (Ndubisi et al., 2011). Satisfied customers are critical to the survival of
SMEs as they will strengthen their buying blueprint with the business, while also
disseminating positive confirmatory word-of-mouth information to potential customers
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about the business’s offerings (Terblanche, 2015). This suggests that SMEs that achieve
high levels of satisfaction generally outperform their competitors by achieving better cash
flows, a greater market share and increased profitability because customers value the
quality of their relationship with them (Ndubisi, 2012). As a result, customers’ perception of
satisfaction results in positive behavioural intentions (affecting purchase frequency, for
example), which in turn reinforces their relationship with the brand (Karimi et al., 2012).

Brand loyalty
Brand loyalty relates to a deep sense of commitment by a customer to patronising a particular
product or service consistently in the future (Izogo, 2016b). Shobri et al. (2012) agree with this
definition, and comment that brand loyalty reflects the tendency of consumers to associates
themselves with a specific brand, regardless of price adjustments or alterations in product
features. Brand loyalty is particularly important for SMEs in highly competitive environments
(such as the apparel industry) as it contributes to continued purchases over time, reduced
operational costs, positive word-of-mouth recommendations and price tolerance, which in turn
increases profitability and strengthens competitive advantage (Biscaia et al., 2017). Customers
tend to remain loyal to a brand that offers them better products or services than another brand
(Kaura et al., 2015). Thus brand loyalty is an important asset to SMEs, as it contributes to the
continuity of the consumer lifecycle and leads to a positive advocacy of the offerings of a
business in the marketplace (Erdogmus and Ergun, 2016).
Research by Huang (2017) has established that brand loyalty can be defined and
measured by behavioural and attitudinal components. The findings of Nyadzayo et al. (2018)
support this notion, proving that true brand loyalty exists only when both behaviour and
attitudes are considered when determining the future purchase intentions of consumers.
Behavioural loyalty refers to customers’ preference to stay with a brand, even after an
unfavourable evaluation (Van Esterik-Plasmeijer and Van Raaij, 2017). In contrast,
attitudinal loyalty can be described as customers’ attachment to a brand and the extent to
which they are not attracted by competing offers in the marketplace (Al Abdulrazak and
Gbadamosi, 2017). In this study, both behavioural and attitudinal factors are considered in
determining brand loyalty, as suggested by Nyadzayo et al. (2018).

Theoretical model development


Relationship between trust and attitudinal loyalty
Trust is essential in enhancing attitudinal loyalty, especially in the apparel industry where
product and service delivery concerns affect the retention of profitable customers by SMEs
(Giovanis and Athanasopoulou, 2017). A number of studies, including those of Susanty et al.
(2017) and Melewar et al. (2017) have reported findings that indicate the positive influence of trust
on attitudinal loyalty. Jimenez et al. (2016) and Menidjel et al. (2017) concur that the cultivation of Relationship
trust generates a stronger level of attitudinal loyalty in the marketplace. This implies that a brand quality on
can gain the trust of customers through consistently meeting their interests and expectations, brand loyalty
which in turn reinforces repeat purchases and stimulates attitudinal loyalty (Chinomona, 2016).
On the basis of the foregoing discussion, the following hypothesis is proposed:
H1. There is a significant and positive relationship between trust and attitudinal loyalty
among customers of apparel businesses in Botswana.

Relationship between commitment and attitudinal loyalty


The empirical research of Thaichon et al. (2014) has identified commitment as a significant
antecedent of attitudinal loyalty. Previous studies by Fullerton (2011) and Reydet and Carsana
(2017) have established that commitment has a positive impact on attitudinal loyalty. Related
studies of Izogo (2015) and Lariviere et al. (2014) also demonstrate the influence of commitment
on strengthening the degree of attitudinal loyalty. Van Tonder (2016) opines that, to enhance
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attitudinal loyalty, businesses such as SMEs must focus on maintaining and reinforcing
committed relationships, as higher levels of commitment can result in more loyal customers. In
the light of these findings, the following hypothesis is offered:
H2. There is a significant and positive relationship between commitment and attitudinal
loyalty among customers of apparel businesses in Botswana.

Relationship between satisfaction and attitudinal loyalty


Satisfaction is a key driver of attitudinal loyalty through stimulating continuous patronage
and promoting appreciation of a business in the minds of current and new customers
(Terblanche, 2015). The findings of Mantey and Naidoo (2017) and Ong et al. (2017) have
proved that satisfaction positively influences attitudinal loyalty. The empirical work of Lee and
Moghavvemi (2015) and Magasi (2015) support this notion by arguing that serving the needs of
customers satisfactorily can stimulate attitudinal loyalty through sustaining their interest and
maintaining a long-term relationship with them. Therefore, if SME brands are able to
consistently exceed their customers’ expectations with regard to product and service offerings,
they should be able to retain these customers, resulting in a loyal long-term customer base
(Mackay and Major, 2017). On the basis of this argument, the following hypothesis is proposed:
H3. There is a significant and positive relationship between satisfaction and attitudinal
loyalty among customers of apparel businesses in Botswana.

Relationship between attitudinal loyalty and behavioural loyalty


Attitudinal loyalty is a good indicator and symbolic predictor of behavioural loyalty in the SME
environment through fostering a customer’s intention to repurchase and recommend the brand
among competing offers (Nyadzayo et al., 2018). Empirical research by Bilgihan et al. (2016) and
Choi et al. (2017) has found that behavioural loyalty is positively influenced by attitudinal
loyalty. The findings of Hwang and Han (2014) and Hwang et al. (2015) support this argument
by stating that customers who hold a high position for a brand are likely to develop favourable
attitudes and revisit the brand in the future, thereby stimulating behavioural loyalty. Therefore,
SMEs should focus on acquiring knowledge on improving aspects of attitudinal loyalty such as
beliefs, feelings and purchase intention in order to establish stronger behavioural loyalty (Izogo,
2017). In the light of the foregoing discussion, the following hypothesis is offered:
H4. There is a significant and positive relationship between attitudinal loyalty and
behavioural loyalty among customers of apparel businesses in Botswana.
Figure 1 depicts the interrelationship of the constructs in this study.
AJEMS
Trust H1

Behavioural loyalty
Attitudinal loyalty
Commitment H2 H4

Figure 1.
Proposed conceptual
model Satisfaction H3
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Methodology
The study was quantitative in nature, supported by a descriptive research design
(Malhotra, 2010). The population was defined as customers of three major selected
SME brands who collectively hold 50 per cent of the market share – Premier Clothing,
Jarveria Garments and Cally Clothing – within the apparel industry, all located in the
metropolitan city of Gaborone, Botswana (Ministry of Trade and Industry, 2017).
These customers, being the main revenue generators of SME brands therefore, constituted
the target population. The metropolitan city of Gaborone was ideally suited for this
research due to the fact that it attracts the highest number (25,000) of SMEs in
Botswana and is a central hub where the practice of relationship building is considered a
vital factor in business operations (Ministry of Trade and Industry, 2017). A targeted
sample of 450 customers (150 from each SME) who met the sample requirements were
surveyed in this study.
A stratified probability sampling procedure was used to partition the population into
sub-groups in accordance with the size category of each SME, namely, small for Cally
Clothing and medium for both Premier Clothing and Jarveria Garments. In this case,
Cally Clothing represents a small-sized business as it makes an annual turnover of between
60,000 Pula and 1.5m Pula and employs no more than 25 workers, whilst Premier Clothing
and Jarveria Garments both fit the profile of medium enterprises, as they employ a total of
250 employees and generate an annual turnover of between 1.5m Pula and 5m Pula
(Ministry of Trade and Industry, 2017). Within the identified sub-groups, a convenience
sampling approach was utilised for the purpose of drawing a sample willing to participate in
the study. These combined sampling methods have the advantage of collecting a large
number of responses at lower cost in a short period of time, thereby enhancing the sampling
adequacy (Hair et al., 2014).
Self-administered questionnaires were utilised to collect data for the empirical phase of
the study. The questionnaires were distributed by fieldworkers at the service points of
each selected SME brand in Gaborone. Furthermore, the questionnaire commenced with a
preamble explaining the purpose of the study and ensuring the anonymity of participants,
followed by a screening question and demographic information of the participants.
The constructs for the study were tested on a five-point Likert scale (ranging from 1 ¼
“Strongly disagree” to 5 ¼ “Strongly agree”). The measurement variables that had
proven to be valid and reliable were only considered for the purpose of this study.
Trust was measured by the scale of Alsaad et al. (2017) and included four
measurement variables. The three measurement variables for commitment were
adapted from the parsimonious scale provided by Dagger et al. (2011). Satisfaction was
measured by the scale provided by Mackay et al. (2015) and included four Relationship
measurement variables. The three measurement variables for attitudinal loyalty and quality on
three measurement variables for behavioural loyalty were both adapted from brand loyalty
the measurement scales provided by Choi et al. (2017). The measurement items are
summarised in Table I.
The data were collected over a five-week period. Of the 450 questionnaires distributed,
only 260 complete questionnaires were retrieved for further analysis, representing a
response rate of 58 per cent. The size of the realised sample therefore fulfils the criterion
suggested by Hair et al. (2014).
Upon completion of the data collection, SPSS version 24 and AMOS version 24 were used
to capture and analyse the data. The data were first analysed through descriptive statistics
and Cronbach’s α values to assess the reliability of the measuring instrument. This was
followed by confirmatory factor analysis (CFA) via structural equation modelling (SEM) to
determine the hypothesised relationships in the proposed model.
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Number of
Construct Measurement items Source items adopted

Trust (B1) B1.1 My relationship with the clothing retailer is good, because Alsaad 4
the retailer fulfils its obligations towards me et al. (2017)
B1.2 My relationship with the clothing retailer is good, because
the retailer’s employees are competent in serving customers
B1.3 My relationship with the clothing retailer is good, because I
can rely on their confidence to do their part when I interact with
them on a daily basis
B1.4 My relationship with the clothing retailer is good, because
the retailer is able to meet my individual needs
Commitment B2.1 My relationship with the clothing retailer is something I Dagger 3
(B2) really care about et al. (2011)
B2.2 My relationship with the clothing retailer is something that
we are both committed to
B2.3 My relationship with the clothing retailer is good because
the retailer is prepared to make short-term sacrifices to maintain
our relationship
Satisfaction B3.1 My relationship with the clothing retailer is good because Mackay 4
(B3) I am satisfied with the level of assistance provided by et al. (2015)
retailer’s employees
B3.2 My relationship with the clothing retailer is good because I
am satisfied with how the retailer deals with me professionally
B3.3 My relationship with the clothing retailer is good because I
am satisfied with the product selection/ variety of clothing that is
offered by the retailer
B3.4 My relationship with the clothing retailer is good because I
feel satisfied with the quality of products offered to customers
like me
Attitudinal C1.1 If I had to do it all again, I would choose this clothing Choi et al. 3
loyalty (C1) retailer again (2017)
C1.2 I consider myself to be a loyal patron of this clothing retailer
C1.3 I believe my continued usage of the clothing retailer is the
best choice for me
Behavioural D1.1 I would recommend the clothing retailer to others Choi et al. 3
loyalty (D1) D1. 2 I intend to keep buying clothing from the clothing retailer (2017) Table I.
D1.3 I intend to encourage other people to buy from this Measurement
clothing retailer instruments
AJEMS Results
Respondent profile
Table II presents a description of the respondents. Most participants in this
study were female (51.5 per cent), between 18 and 30 years of age (49.20 per cent), in
possession of a university degree (52.69 per cent), predominantly single (73.50 per cent),
working full time (65.38 per cent) and maintaining an average standard of living
(61.92 per cent).

Demographic characteristics Frequency Percentage

Gender
Male 126 48.5
Female 134 51.5
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Total 260 100


Age
18–30 128 49.20
31–40 87 33.50
41–50 36 13.80
51–60 7 2.70
61–70 2 0.80
Total 260 100
Marital status
Single, never married before 191 73.50
Married or living with partner 59 22.70
Divorced, separated/widowed 10 3.80
Total 260 100
Level of education
Some high school 11 4.23
High school completed 24 9.23
Post-Form five (matric) certificate or diploma completed 62 23.85
University degree 137 52.69
Post-graduate degree 26 10.00
Total 260 100
Employment status
Self-employed (earning salary) 53 20.39
Full-time employed by an organisation 170 65.38
Part-time employed by an organisation 19 7.31
Full-time student (not earning salary) 4 1.54
Part-time student (earning salary) 5 1.92
Retired 4 1.54
Unemployed (not earning salary) 5 1.92
Total 260 100
Economic status
Poor 13 5.00
Below average 36 13.85
Average 161 61.92
Table II. Above average 39 15.00
Sample demographic Affluent 11 4.23
characteristics Total 260 100
Reliability and validity of the measurement model Relationship
Statistics pertaining to the measurement model are summarised in Table III. A CFA quality on
procedure via SEM was conducted to evaluate the reliability and validity of the measuring brand loyalty
instrument. All constructs were found to be reliable, as both Cronbach’s α values and
construct reliability values were greater than 0.70, as recommended by Hair et al. (2014).
Face validity was ensured by using parsimonious scales from previous studies that had
favourable reliability and validity. In addition to this, the researcher conducted a pilot test
on a small representative sample (n ¼ 15) to ensure validity of the measurement items.
Discriminant validity was confirmed by using the average variance extracted (AVE)
principle test, as recommended by Malhotra (2010). The AVE values for each construct were
greater than the corresponding shared variances, indicating discriminant validity.
The standardised factor loadings were all above the threshold of 0.50, and all AVE
values were above the lower limit of 0.50, indicating convergent validity. The measurement
model (refer to Table IV ) further provided good-fit statistics as indicated by the χ2/degrees
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of freedom (χ2/df ¼ 1.772), Tucker-Lewis index (TLI ¼ 0.969), comparative fit index
(CFI ¼ 0.975) and root mean square error of approximation (RMSEA ¼ 0.055) and as such
confirmed construct validity. Therefore, the measurement model fits the data satisfactorily.

Construct and items Factor loadings Composite reliability AVE Shared variance Cronbach’s α

Trust (TR)
B1.1 0.776 0.878 0.644 0.421 0.877
B1.2 0.829
B1.3 0.830
B1.4 0.772
Commitment (CM)
B2.1 0.728 0.863 0.680 0.421 0.851
B2.2 0.912
B2.3 0.823
Satisfaction (SAT)
B3.1 0.862 0.924 0.753 0.172 0.843
B3.2 0.874
B3.3 0.874
B3.4 0.862
Attitudinal loyalty (AL)
C1.1 0.818 0.892 0.734 0.172 0.893
C1.2 0.868
C1.3 0.883
Table III.
Behavioural loyalty (BL) Reliability and
D1.1 0.898 0.922 0.797 0.172 0.921 convergent and
D1.2 0.863 discriminant validity
D1.3 0.917 results summary

Selected Result Source for suggested cut-off


indices outcome Acceptable level of fit limits

Normed χ2/df 1.772 ( χ2/df ) ⩾ 3; o 5 sometimes permissible Hair et al. (2014), Malhotra (2010)
TLI 0.969 TLI W0.90 Table IV.
CFI 0.975 CFI W 0.90 Goodness-of-fit indices
RMSEA 0.055 RMSEA o 0.05 good; 0.05 to 0.10 in the measurement
acceptable model
AJEMS Assessment of correlations between the constructs
Correlations among the latent constructs were explored using Pearson product moment
correlation (r) coefficient in order to determine whether multicollinearity exists in the data set.
Values equal to or above 0.90 are considered problematic, as they indicate a pattern of strong
linear relationships, reduce the model fit and contribute to multicollinearity in the sample data
(Hair et al., 2014). The relationships between pairs of constructs linked to one another in the
structural model were found to be linear and were less than 0.90; hence there was no presence
of multicollinearity in the data. Table V depicts the correlation matrix with correlation among
constructs in this study.

Structural model analysis


A structural model was used to assess the linkages between the constructs and to validate the
research H1–H4 formulated for this study. The theoretical model (refer to Figure 1) was
therefore tested by means of SEM, with maximum likelihood estimates of the model parameters.
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These parameters include standardised regression weights ( β ) and p-values of the different
paths. The results from this analysis are presented in Table VI and Figure 2.
Table VI and Figure 2 indicate positive standardised regression coefficients for the
relationships among the study’s constructs, which ranged from 0.271 to 0.960, as well as
the t-statistics for the statistical significance of the interrelationship between the variables,
which varied from 3.111 to 17.962. Additionally, all standardised regression weights were
found to be statistically significant at 5 per cent ( p o 0.05) and loaded significant t-values
greater than 2, confirming that the hypothesised relationships (H1–H4) could be accepted.
First, a positive and significant relationship between trust and attitudinal loyalty
( β ¼ 0.271, t ¼ 3.111, p ¼ 0.002) was reported. This is consistent with H1 and the
prediction is supported. Second, the results established that commitment exerted a positive

Research constructs TR CM SAT AL BL

Trust (TR) 1.000


Commitment (CM) 0.540 1.000
Table V. Satisfaction (SAT) 0.510 0.411 1.000
Correlations between Attitudinal loyalty (AL) 0.442 0.453 0.283 1.000
the constructs Behavioural loyalty (BL) 0.439 0.323 0.531 0.501 1.000

Direct
path Hypothesis Variance
estimates T-statistics Probability result ( p o explained
Hypotheses ( β) (t) value ( p) 0.05) (R2)

H1 Trust → Attitudinal loyalty 0.271 3.111 0.002 Supported 0.518


H2 Commitment → Attitudinal loyalty 0.287 4.068 0.000 Supported
H3 Satisfaction → Attitudinal loyalty 0.244 3.502 0.000 Supported
H4 Attitudinal loyalty → Behavioural loyalty 0.960 17.962 0.000 Supported 0.863

Table VI. Model fit statistics


Hypothesis testing χ2/df 1.120
and goodness-of-fit TLI 0.978
results for the CFI 0.985
structural model RMSEA 0.048
B1.1 Relationship
B1.2 TR quality on
B1.3
brand loyalty
B1.4 D1.1 D1.2 D1.3
0.271
(3.111)

B2.1
AL BL
B2.2 CM 0.287 0.960
(R 2 = 0.518) (R 2 = 0.863)
B2.3 (4.068) (17.962)

0.244 C1.1 C1.2 C1.3


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(3.502)
B3.1
SAT
B3.2
B3.3
B3.4
Figure 2.
Notes: TR, trust; CM, commitment; SAT, satisfaction; AL, attitudinal loyalty; BL, behavioural SEM model
loyalty

influence on attitudinal loyalty. Therefore, H2 is strongly supported ( β ¼ 0.287, t ¼ 4.068,


p ¼ 0.000). Third, satisfaction had a positive influence on attitudinal loyalty, so H3 should
be retained ( β ¼ 0.244, t ¼ 3.502, p ¼ 0.000). At last, there was a direct positive
relationship between attitudinal loyalty and behavioural loyalty, so H4 is accepted
( β ¼ 0.960, t ¼ 17.962, p ¼ 0.000). Overall, trust, commitment and satisfaction accounted
for 51.8 per cent of the variation (R2) in attitudinal loyalty. In contrast, attitudinal loyalty
contributed to 86.3 per cent of the variation in behavioural loyalty.
Finally, as evidenced in Table VI, adequate model fit results (χ2/df ¼ 1.120, TLI ¼ 0.978,
CFI ¼ 0.985 and RMSEA ¼ 0.048) were obtained, and it can thus be concluded that the
structural model supports the data, as suggested by Hair et al. (2014) and Malhotra (2010).

Discussion
The results indicate that customers of the selected SME brands in the apparel industry of
Botswana perceive trust, commitment and satisfaction to significantly influence
attitudinal loyalty. More specifically, trust ( β ¼ 0.271, t ¼ 3.111, p ¼ 0.002),
commitment ( β ¼ 0.287, t ¼ 4.068, p ¼ 0.000) and satisfaction ( β ¼ 0.244, t ¼ 3.502,
p ¼ 0.000) exerted a positive and significant relationship on attitudinal loyalty, therefore
H1–H3 were accepted. These findings are congruent to the empirical studies of
Ong et al. (2017), Reydet and Carsana (2017) and Susanty et al. (2017) which established
trust, commitment and satisfaction as the strongest predictors of attitudinal loyalty in the
industrial landscape. This suggests that the greater the level of trust, commitment and
satisfaction, the stronger the level of attitudinal loyalty.
Contrary to expectations, evidence was found for the positive impact of attitudinal loyalty
on behavioural loyalty amongst selected SME brands in the apparel industry of Botswana.
Consistent with H4, this indicates that attitudinal loyalty ( β ¼ 0.960, t ¼ 17.962, p ¼ 0.000)
had a direct effect on the level of behavioural loyalty. This finding is consistent with the
results of by Bilgihan et al. (2016) and Choi et al. (2017), who found that the cultivation
AJEMS of attitudinal loyalty leads to an increased level of behavioural loyalty in the marketplace.
Thus, building a genuine and favourable behavioural loyalty requires the inclusion of
attitudinal loyalty.

Theoretical implications
The study offers both a theoretical and a practical contribution. From a theoretical
perspective, the results confirm that the measurement scales used to measure the
relationship quality dimensions and brand loyalty are reliable and valid. The model,
developed from theory, has been verified, confirming the relationships between the
relationship quality dimensions and attitudinal loyalty, and between attitudinal loyalty and
behavioural loyalty, within an emerging market context. In this regard, the study makes a
significant contribution to relationship marketing theory by systematically exploring how
the selected dimensions of relationship quality can strengthen brand loyalty among SMEs
in the apparel industry of Botswana.
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From a managerial perspective, the study contributes in potentially assisting SME


brands to understand how trust, commitment and satisfaction can strengthen attitudinal
loyalty and how attitudinal loyalty can stimulate behavioural loyalty, leading to increased
brand loyalty in the long run. The outcome, however, will depend on whether the customer
perceives trust, commitment, satisfaction and attitudinal loyalty as positive. As noted by
Chinomona (2016) and Izogo (2017), it remains important to regularly review customer
experiences with product offerings in line with market trends to ensure that businesses
remain competitive and can effectively address unmet customer needs. It is imperative,
therefore, for SME brands to develop a relationship management approach that can be
integrated into their processes to secure brand loyalty among customers.
From a theoretical perspective, the study makes two important contributions. It first
establishes that there is a positive and significant relationship between trust, commitment
and satisfaction and attitudinal and brand loyalty within an emerging economy such as
Botswana. This further implies that trust, commitment and satisfaction do have a direct
impact on attitudinal loyalty as corroborated in the empirical research of Izogo (2015),
Magasi (2015) and Menidjel et al. (2017). This finding presents an opportunity for
researchers to explore how trust, commitment and satisfaction can be cultivated to
strengthen attitudinal loyalty in an African market environment, thereby fostering brand
loyalty. Therefore, the consideration of trust, commitment and satisfaction contributes to
relationship quality literature by providing useful measurement antecedents that can be
used by SMEs to enhance their brand loyalty.
At last, the study establishes that there is a positive and significant relationship between
attitudinal loyalty and behavioural loyalty. The proposed conceptual model aids
understanding of the positive influence of attitudinal loyalty on the level of behavioural
loyalty, as hypothesised in the study. It can be concluded that attitudinal loyalty does
have a direct impact on the behavioural loyalty of customers in an African product
environment such as the apparel industry of Botswana, as supported by the empirical
findings of Hwang and Han (2014) and Hwang et al. (2015).

Managerial implications
First, SME owners ought to pay attention to building trust, commitment and satisfaction in
order to strengthen the level of attitudinal loyalty in the marketplace. By increasing the
perceived level of trust, commitment and satisfaction through offering personalised services
and unique products, the management of SMEs will be in a position to gain increased
attitudinal loyalty among their customers. In order to achieve this, employees will need to be
trained in areas of service delivery, product development and customer engagement in order
to fulfil the expectations of customers. Consequently, customers will become more loyal
towards a brand that they perceive to be trustworthy in its claims, committed to their needs Relationship
and offering a satisfying purchasing experience. Such endeavours tend to lead to favourable quality on
outcomes such as increased competitive advantage, improved market share and enhanced brand loyalty
longevity of customer relationships. This guideline can assist an SME in building up a
relationship of trust, commitment and satisfaction with customers, which in turn will lead to
increased attitudinal loyalty and ultimately to enhanced brand loyalty.
Second, SMEs need to put plans and procedures in place to build and sustain their
customers’ attitudinal loyalty, which in turn can enhance behavioural loyalty towards their
brands. It is suggested that SMEs should focus on developing and executing responsive
strategies towards increasing product preference and purchasing intentions in order
to create an environment that stimulates positive attitudes among their customers so as to
ensure behavioural loyalty. This can be done by offering quality guarantees for every purchase
and shorter turnaround times to ensure that customers’ needs are properly addressed.
Therefore, this guideline can equip SME owners with knowledge on improving attitudinal
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loyalty by stimulating customers’ willingness to repurchase and recommend their product


offerings, thereby leading to increased behavioural loyalty and sustained brand loyalty.

Limitations and future research


The study was conducted in Botswana’s apparel industry in the metropolitan city of
Gaborone to understand the influence of the relationship quality dimensions on brand
loyalty and its antecedents. Consequently, the findings are representative only of those
participants in the research and not the entire target population. It is therefore suggested
that future research be conducted among other SME customers in Botswana in different
areas of the country. Although the study focused on three dimensions of relationship
quality, knowledge is needed on additional factors (such as communication and empathy)
that may be relevant in determining brand loyalty and may be unique to the African context
to advance relationship marketing theory. There is also a need for comparative research
to be conducted among other emerging markets (such as Botswana and South Africa) to
determine if similar results and conclusions can be generated since the focus of the study
was based solely on one country. Finally, the proposed conceptual model in this study could
be implemented in studies in other emerging economies and in similar product industries
(such as textile and leather goods) to test its reliability, relevance and applicability.

Conclusion
The aim of this paper was to determine the influence of relationship quality on brand loyalty
of SMEs operating in the apparel industry of Botswana. The results of this study supported
all four hypotheses, indicating that trust, commitment and satisfaction have positive
relationships with attitudinal loyalty. In addition, it was established that attitudinal loyalty
is directly related to behavioural loyalty. Finally, the impact of this research paper lies in
providing SME brands with guidelines on how to retain a loyal customer base.
The implementation of these guidelines should enable SMEs in an African emerging
economy such as Botswana to provide a favourable environment for achieving brand
loyalty through building trust, commitment and satisfaction.

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Further reading
Ahamed, A.J. and Skallerud, K. (2013), “Effect of distance and communication climate on export
performance: the mediating role of relationship quality”, Journal of Global Marketing, Vol. 26
No. 5, pp. 284-300.

Corresponding author
Aobakwe Ledikwe can be contacted at: albrian60@gmail.com

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