Loyalty-Marketing .Dox

Loyalty: The Influences of Satisfaction and Brand Community Integration Author(s): James
H. McAlexander, Stephen K. Kim and Scott D. Roberts Source: Journal of Marketing

Theory and Practice, Vol. 11, No. 4 (Fall, 2003), pp. 1-11 Published by: Taylor & Francis,
Ltd. Stable URL: https://www.jstor.org/stable/40470114 Accessed: 28-05-2020 09:00 UTC
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LOYALTY: THE INFLUENCES OF SATISFACTION AND
BRAND COMMUNITY INTEGRATION
James H. McAlexander Oregon State University
Stephen K. Kim Oregon State University
Scott D. Roberts Northern Arizona University
This paper empirically explores the relative impacts of satisfaction, brand community integration, and consumer experience on
customer loyalty as expressed by future purchase intentions and behavior. Data drawn from qualitative research and a survey
of 1000 patrons of a Native American casino who indicate a willingness to engage informal marketing relationships indicate that
satisfaction yields to brand community integration as a key driver of loyalty. We discuss important implications of the findings for
marketing theory and practice.
INTRODUCTION
satisfaction (Jacoby and Kyner 1973; Jones and Sasser 199 Szymanski and Henard 2001). In the last several year That
loyalty is a key marketing goal is so widely accepted however, that
the marketing literature has begun to reveal eviden its value has been deemed to be "self-evident to every that business
challenges some of the fundamental tenets of loyalty (c person" (Reichheld 1996, p.35). With such importance, Fournier it 1998).
is
Of interest to the current research ar not surprising that loyalty is the focus of a significant questions body pertaining of
to the antecedents of loyalty. The literature in marketing. Within that literature, marketers issues have have
importance to both our theoretical understandi generally shared a fundamental understanding of what of loyalty loyalty
and the managerial challenges of strengthening means and how it is created. Loyalty has been traditionally understood to be
reflected by repeat purchase behavior and/or
LOYALTY: BEYOND SATISFACTION the expression of a favorable attitude toward such behavior (Jacoby and Chestnut 1978). To
achieve loyalty, There marketers
is a growing body of research that indicates loya have emphasized the need to provide and improve developed customer
in ways that are more dynamic and complex
Fall 2003 1
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reflected in the common "satisfaction builds loyalty" models (Fournier 1998; Oliver 1999; Chaudhuri and Holbrook 2001). Investigations
Loyalty: The Influences of Satisfaction and Brand Community
that focus on the experiences
Integration Author(s): James H. McAlexander, Stephen K. Kim and Scott D. Roberts Source:
Journal of Marketing Theory and Practice, Vol. 11, No. 4 (Fall, 2003), pp. 1-11 Published
by: Taylor & Francis, Ltd. Stable URL: https://www.jstor.org/stable/40470114 Accessed: 28-
05-2020 09:00 UTC
REFERENCES Linked references are available on JSTOR for this article:

https://www.jstor.org/stable/40470114?seq=1&cid=pdf-reference#references_tab_contents You
may need to log in to JSTOR to access the linked references.
JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide
range of content in a trusted digital archive. We use information technology and tools to increase productivity and
facilitate new forms of scholarship. For more information about JSTOR, please contact support@jstor.org.
Your use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use, available at
https://about.jstor.org/terms
Taylor & Francis, Ltd. is collaborating with JSTOR to digitize, preserve and extend access to Journal
of Marketing Theory and Practice
This content downloaded from 203.193.156.82 on Thu, 28 May 2020 09:00:05

UTC All use subject to https://about.jstor.org/terms
LOYALTY: THE INFLUENCES OF SATISFACTION AND

BRAND COMMUNITY INTEGRATION
James H. McAlexander Oregon State University
Stephen K. Kim Oregon State University
Scott D. Roberts Northern Arizona University
This paper empirically explores the relative impacts of satisfaction, brand community integration, and consumer experience on
customer loyalty as expressed by future purchase intentions and behavior. Data drawn from qualitative research and a survey
of 1000 patrons of a Native American casino who indicate a willingness to engage informal marketing relationships indicate that
satisfaction yields to brand community integration as a key driver of loyalty. We discuss important implications of the findings for
marketing theory and practice.
INTRODUCTION
satisfaction (Jacoby and Kyner 1973; Jones and Sasser 199 Szymanski and Henard 2001). In the last several year That
loyalty is a key marketing goal is so widely accepted however, that
the marketing literature has begun to reveal eviden its value has been deemed to be "self-evident to every that business
challenges some of the fundamental tenets of loyalty (c person" (Reichheld 1996, p.35). With such importance, Fournier it 1998).
is
Of interest to the current research ar not surprising that loyalty is the focus of a significant questions body pertaining of
to the antecedents of loyalty. The literature in marketing. Within that literature, marketers issues have have
importance to both our theoretical understandi generally shared a fundamental understanding of what of loyalty loyalty
and the managerial challenges of strengthening means and how it is created. Loyalty has been traditionally understood to be
reflected by repeat purchase behavior and/or
LOYALTY: BEYOND SATISFACTION the expression of a favorable attitude toward such behavior (Jacoby and Chestnut 1978). To
achieve loyalty, There marketers
is a growing body of research that indicates loya have emphasized the need to provide and improve developed customer
in ways that are more dynamic and complex
Fall 2003 1
reflected in the common "satisfaction builds loyalty" models (Fournier 1998; Oliver 1999; Chaudhuri and Holbrook 2001). Investigations that focus
on the experiences associated with product use (or consumption) have been especially influential by uncovering important variations in the loyalty
equation ( Mittal et al. 1999; Licata et al. 2001; Mittal et al. 2001). As customers repurchase and use products, new and unanticipated benefits
(and, sometimes, costs) that have an impact on both satisfaction and loyalty may be revealed. Ownership and/or use may lead to interactions
with the product, marketers, and other customers that influence impressions of functionality and yield important personal and social meanings that
can bear upon satisfaction and the nature and strength of loyalty (Price, Arnould and Tierney 1995; Fournier 1998; Fournier and Mick 1999; Oliver
1997, 1999).
In a provocative paper with implications for both theory and practice, Garbarino and Johnson (1999) find that, in some situations, overall
satisfaction has no significant influence on future purchase intentions. Building upon prior work that examines the developmental processes
of relationship formation (Dwyer, Schurr, and Oh 1987; Berry 1995), they find that for customers who exhibit a strong relationship with a company,
trust and commitment supplant satisfaction as drivers of loyalty. They conclude that the management of satisfaction is most effective for
developing loyalty among customers that are not inclined toward establishing enduring relationships.
In the last few years scholars have offered conceptual and empirical research that complements and extends these developments.
Oliver (1999), for example, presents an evolutionary model in which satisfaction makes important contributions to repurchase early in the
ownership cycle. In this model, as customers gain experience, a "convergence of product, personal, and social forces" (p. 42) can lead to the
emergence of "ultimate loyalty." Brand community, a concept recently introduced into the marketing literature (Muñiz and O'Guinn
2001), offers a complementary perspective. Muñiz and O'Guinn (2001, p. 423) define brand community as a "specialized, non-
geographically bound community, based on a structured set of social relationships among users of a brand." They observe that the social
bonds built through brand consumption may have implications for loyalty and brand equity.
In their exploration, McAlexander, Schouten, and Koenig (2002) observe that brand community can situate the consumer in a
"complex web of relationships" (p. 39). Extending the work of Muñiz and O'Guinn (2001), McAlexander and his colleagues broaden
the conceptualization of relevant community members to include fellow customers, the brand itself, the products as experienced by the
customer, and, at various levels, the marketing institutions responsible for producing, distributing, and communicating about the
products. They note that it is through consumer experience that the existence and benefits of brand community
2 Journal of Marketing THEORY AND PRACTICE

relationships unfold. Of particular importance to the current research is their observation that these relationships can develop
synergistically, strengthening interpersonal ties, and enhancing appreciation for the product, the brand, and the facilitating marketers in ways
that integrate customers into the brand community and that bear upon loyalty.
THE CURRENT RESEARCH
The current research offers a multi-method exploratory study that extends prior research that has questioned the central part that satisfaction plays in building loyal
(Garbarino and Johnson 1999; Oliver 1999). Unlike previous studies, this paper will explore the relative contribution of brand community integration
customer loyalty equation. This is an issue that has not been previously explored. Prior work that focused on branded goods (i.e. Jeep, Macintosh, Saab) has
that the concept of brand community integration can provide marketers with fresh insights into building loyalty. It has not, however, examined the relative ro
satisfaction and brand community can play in building loyalty.
Previous research on brand community has emphasized its applicability to the consumption of experiential goods. We chose to focus our efforts on pe
engaged in the consumption of an experientially oriented service. The research setting, a medium sized Native American casino, provides an oppo
extend our understanding of brand community and its relevance to loyalty to the service sector. Gaming operations in the U.S., whether run by states (e.g., lot
private business, or Native Americans, have shown tremendous growth in the last decade (Ferber and Chon 1994; King and Mclntire 1998; Lew 1998).
follows is a description of our conceptual framework and hypotheses, a review of the research methods and setting, a presentation of our analysis, and a d
of implications for theory and marketing practice.
CONCEPTUAL FRAMEWORK AND HYPOTHESES
Our conceptual framework integrates the recent contributions of McAlexander et al. (2002) and Garbarino and Johnson (1999) as they relate to building
customer loyalty. We conceptually model the influences of brand community integration (BCI), relationship orientation, satisfaction, and consumer
experience on loyalty as expressed by indicators of purchase behavior and repurchase intent. Figure 1 displays the conceptual framework from which
our hypotheses are developed. Informed by Garbarino and Johnson's (1999) findings, our conceptual model focuses on consumers who have
expressed a willingness to engage in a marketplace relationship. In our case, we identify consumers who have enrolled in a relationship marketing
program (the Gamers Club) as "relationship oriented." As indicated by McAlexander et al. (2002), we approach brand community integration
as the cumulative connections of consumers with
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Hlb: the product, the brand, other consumers, and the company. We
General satisfaction is not associated w find the arguments regarding the influential role of customer
loyalty for the more experienced relations experience (Garbarino and Johnson 1999; Oliver 1999) to be
consumers.
compelling and we explicitly integrate aggregate customer experience as an element of our conceptual model.
Brand Community Integration, satisfaction, and lo second and third sets of hypotheses empirically e FIGUREI
extend the assertions of McAlexander and his c BRAND COMMUNITY INTEGRATION, SATISFACTION, AND LOYALTY
(2002) regarding the impact of brand community i
A. Less Experienced Group
upon loyalty.
First, we hypothesize that brand community integration will be positively related to customer satisfaction. This hypothesis H2a(^X S
satisfaction J General I J ' L 'Hia(+)
comes from the observation that those who enroll in relationship programs sometimes anticipate benefits that pertain to
aspects of brand community. For that reason, as indicated by the large body of work in the comparison-
Í Comity L
standards paradigm commonly applied in satisfaction related I Integration I research (Fournier and Mick 1 999; Oliver 1 997), the degree
to
which an expectation of community-related benefits is successfully achieved should have a bearing upon overall
satisfaction. Moreover, with the experiences gained through consumption, additional benefits unfold which may also have a
bearing on satisfaction. Next, we examine directly the relationship between brand community integration and loyalty. B. More
Experienced Gro
H2: Brand community integration is associated positively with satisfaction for (a) less experienced relationship-
oriented consumers and (b) more experienced relationship- oriented consumers.
J yS H2b(^X I
General satisfaction H3: with Brand brand community loyalty for integration L
(a) less experienced is associated relationship-
N.
positively
oriented consumers and (b) for more experienced relationship-oriented consumers. I H3b(+) T Customer j
ÍBrand Integration Community j I J
Indirect effect of brand community integration on customer loyalty through satisfaction. Our final set of hypotheses
integrates prior conceptual and empirical work that indicates that the accumulation of customer experience impacts the way
Hypotheses
in which satisfaction and brand community bear upon customer loyalty (Oliver 1999; Garbarino and Johnson 1999;
Our model leads to several hypotheses that pertain to the relationships that exist among customer experience,
satisfaction, brand community integration, and loyalty. Our initial set of hypotheses, Hu and Hlb> reexamine and extend
Garbarino and Johnson's (1999) work that challenges the contribution of satisfaction to loyalty for relationship-oriented
consumers. By explicitly examining the effect of experience on the satisfaction/loyalty equation for relationship-oriented
consumers we integrate Garbarino and Johnson's work with the conceptual work of Oliver (1999). We anticipate that the impact
of satisfaction on loyalty will diminish as relationship- oriented customers gain experience:
McAlexander, et al. 2002). We propose in H^ that the effect of satisfaction on customer loyalty differs between the less
experienced group (significant effect) and the more experienced group (non-significant effect). We also maintain in H2
and H3 that brand community integration is related positively to satisfaction and loyalty for both the less experienced
group and the more experienced group. Tying these hypotheses together, we anticipate that brand community integration has both a
direct effect and indirect effects through satisfaction on customer loyalty for the less experienced group, but that the indirect
effect of BCI through satisfaction wanes with the accumulation of additional experience. For that reason, we expect that it is only the
main effect of brand
Hla: General satisfaction is associated positively with customer loyalty for less experienced relationship-oriented
community integration that drives customer loyalty for the more experienced group. Therefore, we hypothesize that:
consumers.
Fall 2003 3
"The H4a: Satisfaction mediates the effect of brand community
dealer makes it enjoyable. She's there to enjoy herself integration on customer loyalty for the less experienced
and she would like you to enjoy yourself while you are losing relationship oriented consumers.
your money." H4b: Satisfaction does not mediate the effect of brand community integration on customer loyalty for the
more
We observed that a strong bond to the casino was directly tied experienced relationship oriented consumers.
to feelings of consciousness of kind and moral responsibility (Muñiz and O'Guinn 2001). For example, we found these
METHOD
expressions of community as patrons reported their defense of the casino to a local community that had vehemently fought its The
empirical exploration of the model consists of introduction. qualitative
Many prominent members of the local and quantitative research using the gaming industry community as viewed the
the introduction of a casino as morally focal point. Qualitative work affords the opportunity destructive. Further, to
they were unhappy that it was being built explore the applicability of the brand community on a concept site that had to
been commercially productive and a the research setting, and to examine the nature significant of relevant
source of "family-wage" employment. relationships and their bases of formation. We ground our quantitative work in the
qualitative research experience.
As well as verifying the applicability of the brand community concept and existence of relevant relationships in the casino,
Qualitative Research
the qualitative work further emphasized for us the importance of gauging the impact of experience on the development of
Qualitative work included participant observation community and depth
and loyalty. We found that some who enroll in the interviews conducted at the Shadow Mountain Casino
Gamers Club loyalty program intend to experience the casino (disguised). Participant observation research consisted of three
often. We found others who enroll in response to specific
full days (one weekday and one full weekend) spent by a two-
short-term inducements (i.e. meal discounts). person research team in the casino. The research team participated in all
games offered (e.g., blackjack, poker, bingo,
Measure Development
and slots), ate meals in all restaurants and the bar, and attended a scheduled concert. Participant observation research was
Our qualitative research was also important to the supplemented by exploratory depth interviews with twelve
development of the survey measures that we used for casino patrons. Interviews were video-recorded. Informants
quantitative research. We developed multi-item measures for were selected using a convenience sampling method, based
each construct as indicated from interviews with casino
upon a desire to interview a sample that was diverse with
managers, employees, and players. Our measures were also
regard to games played, gender, and age.
informed by prior academic empirical studies and trade publications and concordant with the recommendations by
Community in the Casino
Churchill (1979). Measurement items are reported in the Appendix. Our experiences in the casino uncovered the existence
of a vital brand community. We noted multiple dimensions of
Customer loyalty. We define customer loyalty as the extent to brand community as discussed by Muñiz and O'Guinn (2001)
which a customer patronizes the casino and desires to maintain and evidence of the formation of the relationships described an by
ongoing relationship with the service provider (Singh and McAlexander et al. (2002). We found, for example, that the
Sirdeshmukh 2000). We operationalize it as a formative scale casino is a very socially-oriented environment for many
with a respondent's patronage behavior and future intention to gamers. As an element of brand community, these
return to the casino. We measured customer patronage by the intercustomer relationships add pleasure and value to the
proportion of the number of visits to Shadow Mountain Casino gaming experience. We noted camaraderie among blackjack
out of the total number of visits made to casinos in the last players and friendly competition among poker players. In three the
months (an indicator of a the casino's share of a
large bingo hall we found intricate rituals as groups of players
customer's visits). We measured future intention by asking the assembled their different daubers and good luck tokens,
respondent's desire to return to Shadow Mountain Casino.
arrayed their bingo cards and got serious about playing bingo
Two items of Likert-type scale (1: strongly disagree - 7: and being with one another.
strongly agree) were used for this purpose.
The existence of a strong customer to company relationship
Customer satisfaction. We defined customer satisfaction as a was demonstrated repeatedly as casino staff cordially
respondent's overall evaluation of the experience with the interacted with us and other gamers as we entered the casino
casino and operationalized it as the extent to which the and engaged in casino activities. When asked how the casino
respondent is happy with the overall casino experience and staff impacted her gaming enjoyment, a female informant
whether the experience exceeds his/her expectations. These described the ways in which staff can be integral to items her
have been used extensively in prior research (see Oliver experience:
1997 for a review of measures). Two Likert-type items (1:
strongly disagree - 5: strongly agree) were used for this purpose.
Brand community integration. Following the lead of McAlexander, Schouten, and Koenig (2002), we
conceptualized brand community integration as a multi- component construct: a customer's relationship with brand, product
(casino services in this case), company (casino workers and management), and other customers. We developed
multi-item measures for each component of brand community integration. The brand component reflects the brand associations
that informants conveyed to us in the qualitative work as well as an indicator of the consumers willingness to identify with
the brand. The brand associations revealed to us include what consumers perceive as unique qualities of the casino,
such as a welcoming feeling. We operationalize identification with the brand as a desire to wear casino branded apparel. Five
Likert-type items (1: strongly disagree - 5: strongly agree) were used for this purpose.
The product component we operationalized as a customer's attribute-based experience with the casino services. Twelve
attributes of casino service were identified and respondents were asked to evaluate each attribute on a five-point scale (1 :
poor - 5: outstanding). The company component we operationalize as a customer's perception of friendliness and
fairness of staff and employees at the casino. Three Likert-type items (1: strongly disagree - 5: strongly agree) were used for this
purpose. The other customer component concerns the extent to which a customer enjoys the company of other customers at
the casino. We used two Likert-type items (1: strongly disagree - 5: strongly agree) for this purpose.
Sampling and Data Collection
The sampling frame was a list of players who enrolled in the casino's loyalty program. A random sample of 1000 players was
selected from the list. Data collection began with a letter to the chosen players that introduced the research project. A few days
later, the first wave of questionnaires was sent with a cover letter. The cover letter offered an incentive of a free
dinner for two in appreciation for survey participation. A follow-up questionnaire was sent three weeks later to those that had
not responded to the original questionnaire. The final response rate was 41.5% (415 out of 1000 sent). After eliminating
some of the returned questionnaires because of such things as incomplete information, 372 responses were used for analysis.
Nonresponse bias check. Nonresponse bias was assessed in two ways. First, according to Armstrong and Overton's (1977)
procedure, no significant differences were found (p > .10) between the early respondent group and the late respondent group
for any of the constructs in the model. In addition, the response group was compared with the nonresponse group on
demographic characteristics such as age and income. No significant differences were found between the two groups.
These results offer evidence that nonresponse bias is not a
significant problem for this study.

Measure Validation
The measurement items were subject to validation process in accordance with the recommendations by Gerbing and
Anderson (1988). They were first examined in terms of their item-to-total correlations. For the four components of brand
community integration, all inter-component correlations are larger than .31 and significant at p <.001. Therefore, four
components are summed to develop a brand community integration score for each respondent. The correlational matrix among
brand community integration, customer satisfaction, and customer loyalty suggests that brand community integration and
general satisfaction are highly correlated (y = .72, p < 001), but the correlation is still significantly different from unity.
Reliability of each measurement scale is also examined and reported in the Appendix. Coefficient alpha for every multi- item
scale is above .70, which is the typical cutoff point (Nunnally 1978). A detailed report of the scale properties and Pearson
correlations is provided in Table 1.
TABLE 1 CORRELATION MATRIX
Brand Community General Customer Mean S.D. Integration Satisfaction Loyalty
Brand 3.97 .58 1.00
Community Integration (BCI) General 3.71 .83 .72 1.00
Satisfaction
Customer 4.30 .82 .39 .25 1.00
Loyalty
Validity check. The convergent validity of the measurement scales was tested by checking correlation between
measurement scales and convergent items. For example, the customer loyalty measure is correlated with an item ("I will
recommend that my friends visit the casino") and the correlation is .33 (p < .001). For customer satisfaction, the measure
is correlated with a convergent item ("I am happy with the services I have experienced at the casino") and the correlation is .70
(p < .001). For brand community integration, the measure is correlated with a convergent item ("The casino makes a positive
contribution to the local community") and the correlation is .42 (p < .001). These results support the convergent validity of
the measurement scale items. The discriminant validity of the measurement scales was checked through exploratory factor
analysis of the scales. The measurement items were summed and average values were computed for model estimation
purpose.
Fall 2003 5
TABLE 2 MODEL ESTIMATION RESULTS
Less Experienced More Experienced
H,: General Satisfaction ■» Customer Loyalty .45b ( .21 *) -.04 ( .08)
H2: BCL -» General Satisfaction 1.06* (.08) 1.12*(.O8)
H3: BCI ■» Customer Loyalty .61b (.31) .43' (.13)
Covariate Distance to the casino ■* General Satisfaction .00b (.00) .00c (.00)
Distance to the casino ■» Customer loyalty -.01" (.00) -.01* (.00)
*:p<.0l;b:p<.05
*: standard error
FIGURE 2 MODEL ESTMATION RESLTS
ranges from one to 125 miles and the median value is eight miles.
Model .48**
Brand Community Integration on loyalty: total effect 1.09*" ■» (a) direct effect: .61**: (b) indirect effect
estimation. The proposed model was estimated by the path analysis option of LISREL 8 with a covariance matrix as
J General L 1.06- /' Mtisfaction '
/ '
an input matrix. The respondents were divided into two groups the "more experienced relationship oriented
consumers" and "less experienced relationship oriented consumers" on the basis of frequency of patronage for the last
Brand j A1M ( '
three months (i.e., median value of eight was used because of
Community
Integration I
skewed distribution of responses). To account for the influence of geographic proximity to the casino upon
patronage, we incorporate the distance between home and the casino into the model as a covariate. The hypothesized model
*:p<.10;**:p<.05;***:p<.01
was estimated through a two-group analysis. Using a two- group analysis affords two major advantages over other
estimation methods: estimation of direct and indirect effects
and the test of coefficient equality across the two groups
B. More Experienced Group
(Bollen 1989). The estimation results are reported in Table 2 and Figure 2.
Brand Community Integration on loyalty, total effect .38** •» (a) direct effect .43***; (b) indirect effect: -.OS
Effect of customer satisfaction on customer loyalty. We predicted that customer loyalty should increase as customer
J General L / satisfactìon N.
'A7rms' '
satisfaction increases for the less experienced group (Hla), but not for the more experienced group (Hlb). The estimation result
suggests that customer satisfaction has a positive effect on customer loyalty (b = .45, p < .05) in the less experienced group,
but its effect in the more experienced group is I I Integration uxnmunlty cJOSL. I
uxnmunlty supported insignificant fully.

(b = I -.04, -43#" n.s.). Therefore, Hla | and Custo Hib are
Effects of brand community integration on satisfaction. We hypothesized that customer satisfaction should increase as
•: p < .10; **: p < .05; ***: p < .01
brand community integration strengthens for both groups (H^
ANALYSIS AND RESULTS
and H2b). The estimation results indicate that satisfaction is associated positively with brand community integration for
Descriptive analysis. We characteristics of the respondents. examined 77% of the demographic
respondents experienced both the are
less (b = experienced 1.12,/? < .01), (b in = support 1.06, p of < .01) H2a and and more
H2b.
over 50 years old and 61% of the respondents are female. 58% of the respondents had a gross income of $35,000 or Effect
lower.
of brand community integration on loyalty. We The distance between the casino and a respondent's hypothesized
home
that customer loyalty should go up as brand
can community integration increases for both the less experienced
identify the relevant elements of brand community and group and the more experienced group. The model estimation
gauge success in fostering those relationships. results suggest that integration in the brand community is associated positively
with customer loyalty for both the less
By situating our research in a service setting our analysis experienced (b = .61, p < .05) and more experienced (b = .43,
provides additional evidence of the transferability of the p < .01) as was hypothesized. Thus, H3aand H3b are supported
concepts of brand community and brand community and the direct effect of brand community integration on
integration. Moreover, that the brand around which this customer loyalty is positive for both groups.
community forms differs considerably in nature from the iconic and mature brands that have been studied previously Indirect
effect of brand community integration on customer
offers evidence that the impact of the brand community loyalty through satisfaction. The total effect of brand
concept may have relevance beyond such brands. community integration on customer loyalty was calculated to unravel the
indirect effect from the direct effect. The total
Limitations and Directions for Future Research
effect of integration in the brand community on customer loyalty was 1.09 (p < .01) for the less experienced group and
The work reported here suffers from the limitations typical of .38 (p < .05) for the more experienced group. Out of these total
empirical survey research. We have, for example, examined effects, the direct effect is .61 (p < .05) and the indirect effect
only one casino, and therefore it is suspect to generalize our is .48 (p < .05) for the less experienced group. Therefore, our
findings to other casinos or settings. The measures, while hypothesis (H4a) that brand community integration has both a
derived from the qualitative work and suitable for this type of direct effect and an indirect effect through satisfaction on
exploratory research, need refinement. The multiple research customer loyalty for the less experienced group is fully
objectives associated with this survey constrained our latitude supported. For the more experienced group, the total effect is
to more fully develop measurement items. To date, scale .38, direct effect is .43 (p < .01) and indirect effect is -.05
development in the realm of brand community research is still (n.s.). Therefore, our hypothesis (H4b) that integration in the
in its infancy. Significant opportunities exist to extend and brand community does not have an indirect effect and only has
refine appropriate measures. There are other important a direct effect on customer loyalty for the more experienced
opportunities in which this work should be extended. We next group is also supported. discuss some of those.
DISCUSSION
Our
An obvious extension of this work is that the findings be tested in other marketing settings. Research is necessary to establish
findings contribute to marketing theory the and boundaries have
that may relate to the brand community implications for marketing practice. With regard to conceptualization. theory, we
As noted by Muñiz and O'Guinn (2001), provide additional evidence that the consumption experience among
customers willingness to engage in marketing relationships accumulation that we is applicability leads express publicly
find to a brand a
of
a visible. of community brand Future community in research a setting to in might which a more explore consumption
privately
the
shift wherein other forces, in this case brand community
consumed product.
integration, become more powerful in building loyalty than does overall satisfaction. This evidence, in combination A challenge
with
facing marketers is how to encourage or create
prior research, provides a strong challenge to conventional
and support brand communities around their offerings. Future
understandings regarding the antecedents of loyalty.
research should explore the kinds of community that can be replicated credibly in different settings. Also, research could To
assumption marketing that managers, to build loyalty our findings one must challenge focus the on assist possible managing
accepted
in identifying pitfalls of the cohesive existence and communities implications of as such the
customer satisfaction. As Oliver (1999) contends, satisfaction
communication of rumors or the orchestration of boycotts. As
is of greatest importance among inexperienced customers.
Muñiz and O'Guinn (2001) indicate, cohesive communities of Loyalty creation, however, is an evolutionary process consumers
driven
may create environments that foster potentially by experience. With experience, customers damaging have the
market dynamics.
connections opportunity of to brand develop community the additional that can and provide meaningful Another a strong
issue worthy of examination is to identify the bond building that the affects type of satisfaction loyalty that and can loyalty.
come from The possibility the characteristics community bonds of
of
of or consumers avoid it. that Clubs prompt and them other to consumer seek brand
brand community provides impetus for managers communities to carefully
do not work for everyone. Who stays outside and consider service-delivery the creation environment. and maintenance As a of
marketing a suitably why? are supportive
challenge,
successful? What needs Are are consumer consumers communities fulfilling when a substitute communities
for
providing that supportive environment requires attention family to or the
other, more "naturally-occurring" communities? brand holistic community consumption provides experience. marketers The a
model conceptualization from Putnam participating which they
reports of
a general trend in the U.S. against joining or in organizations and communities such as
Fall 2003 7
political parties, bowling leagues, and social clubs, such as the Elks (Putnam 2000). Does this social trend of "bowling alone"
bode well or ill for marketers attempts to build community?
Additional research is also necessary to examine the long-term implications for brand community. The literature
(McAlexander et al. 2002; Schouten and McAlexander 1995)
has suggested that integration in a brand community can build important exit barriers (e.g., friendships formed around brand
consumption, integration of the product into extended self concept) that would tend to move a consumer toward long- term
engagement. Longitudinal research would be a valuable tool for assessing the longevity of brand community.
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AUTHOR BIOGRAPHY
James H. McAlexander, (Ph.D., University of Utah) is professor of marketing and coordinator of the m at Oregon State University. Prior research has a
such publications as the Journal of Marke Consumer Research, Research in Consumer Behavior and the Journal of Marketing Theory and Practic
interests include the examination of brand community and customer loyalty.
AUTHOR BIOGRAPHY
Stephen K. Kim, (Ph.D., University of Southern California) is associate professor of marketing at Coll Oregon State University. His research interests inc
noncontractual interfirm governance, channel intera and response surface analysis. His research has appeared in Journal of Marketing, Journal of Marketi In
Journal of Research in Marketing, Journal of the Academy of Marketing Science, and oth
Fall 2003 9
AUTHOR BIOGRAPHY
Scott D. Roberts, (Ph.D. , University of Utah) is associate professor of marketing and master of science program director at Northern Arizona Univers
research has appeared in such publications as the Marketing Theory and Practice, Journal of Economic Psychology, Research in Consumer Behavior and
Consumption,Markets & Culture. His most recent research interests include the Mexican and Mexican- consumer behavior and marketing efforts to these s
Appendix Measurement
Items
I. Brand community integration

1. Brand : (c-alpha = .73) (1: disagree strongly - 5: agree strongly)
I feel welcome at the casino. I feel comfortable
at the casino.
I find the casino's atmosphere exciting. The casino is
clean.
I like to wear clothing with the casino logo.
2. Product: Please provide your overall evaluation of the services you have experienced while at the casino and the resort
(1: poor- 5: outstanding)51
a. Restaurant g. Bingo b. Slots h. Blackjack c. Poker i. Hotel
Package d. Motorcoach Trip j. Sandwich Shop e. Concert &
Events k. Weekend Dancing
f. Loyalty Club 1. Bar
3. Company (c-alpha = .71): (1: disagree strongly - 5: agree strongly)

The staffai the casino is friendly. The people who work at the casino add to the experience. I am treated fairly at the casino.
4. Company of others: (1: disagree strongly - 5: agree strongly)

I enjoy company of others at the casino. The casino is too crowded.
II. General Satisfaction (c-alpha = .77) (1: disagree strongly - 5: agree stron
1 . The casino exceeded my expectations. 2. I am generally satisfied with the casino.
III. Loyalty: (1: disagree strongly - 5: agree strongly)

How many times have you visited casinos?
I will return to the casino.
a Product component of brand community is a form b This item is dropped in the model estimation.
Fall 2003 11

associated with product use (or consumption) have been especially influential by uncovering important variations in the loyalty equation ( Mittal et
al. 1999; Licata et al. 2001; Mittal et al. 2001). As customers repurchase and use products, new and unanticipated benefits (and, sometimes,
costs) that have an impact on both satisfaction and loyalty may be revealed. Ownership and/or use may lead to interactions with the product,
marketers, and other customers that influence impressions of functionality and yield important personal and social meanings that can bear upon
satisfaction and the nature and strength of loyalty (Price, Arnould and Tierney 1995; Fournier 1998; Fournier and Mick 1999; Oliver 1997, 1999).
In a provocative paper with implications for both theory and practice, Garbarino and Johnson (1999) find that, in some situations, overall
satisfaction has no significant influence on future purchase intentions. Building upon prior work that examines the developmental processes
of relationship formation (Dwyer, Schurr, and Oh 1987; Berry 1995), they find that for customers who exhibit a strong relationship with a company,
trust and commitment supplant satisfaction as drivers of loyalty. They conclude that the management of satisfaction is most effective for
developing loyalty among customers that are not inclined toward establishing enduring relationships.
In the last few years scholars have offered conceptual and empirical research that complements and extends these developments.
Oliver (1999), for example, presents an evolutionary model in which satisfaction makes important contributions to repurchase early in the
ownership cycle. In this model, as customers gain experience, a "convergence of product, personal, and social forces" (p. 42) can lead to the
emergence of "ultimate loyalty." Brand community, a concept recently introduced into the marketing literature (Muñiz and O'Guinn
2001), offers a complementary perspective. Muñiz and O'Guinn (2001, p. 423) define brand community as a "specialized, non-
geographically bound community, based on a structured set of social relationships among users of a brand." They observe that the social
bonds built through brand consumption may have implications for loyalty and brand equity.
In their exploration, McAlexander, Schouten, and Koenig (2002) observe that brand community can situate the consumer in a
"complex web of relationships" (p. 39). Extending the work of Muñiz and O'Guinn (2001), McAlexander and his colleagues broaden
the conceptualization of relevant community members to include fellow customers, the brand itself, the products as experienced by the
customer, and, at various levels, the marketing institutions responsible for producing, distributing, and communicating about the
products. They note that it is through consumer experience that the existence and benefits of brand community

relationships unfold. Of particular importance to the current research is their observation that these relationships can develop
synergistically, strengthening interpersonal ties, and enhancing appreciation for the product, the brand, and the facilitating marketers in ways
that integrate customers into the brand community and that bear upon loyalty.
THE CURRENT RESEARCH
The current research offers a multi-method exploratory study that extends prior research that has questioned the central part that satisfaction plays in building loyal
(Garbarino and Johnson 1999; Oliver 1999). Unlike previous studies, this paper will explore the relative contribution of brand community integration
customer loyalty equation. This is an issue that has not been previously explored. Prior work that focused on branded goods (i.e. Jeep, Macintosh, Saab) has
that the concept of brand community integration can provide marketers with fresh insights into building loyalty. It has not, however, examined the relative ro
satisfaction and brand community can play in building loyalty.
Previous research on brand community has emphasized its applicability to the consumption of experiential goods. We chose to focus our efforts on pe
engaged in the consumption of an experientially oriented service. The research setting, a medium sized Native American casino, provides an oppo
extend our understanding of brand community and its relevance to loyalty to the service sector. Gaming operations in the U.S., whether run by states (e.g., lot
private business, or Native Americans, have shown tremendous growth in the last decade (Ferber and Chon 1994; King and Mclntire 1998; Lew 1998).
follows is a description of our conceptual framework and hypotheses, a review of the research methods and setting, a presentation of our analysis, and a d
of implications for theory and marketing practice.
CONCEPTUAL FRAMEWORK AND HYPOTHESES
Our conceptual framework integrates the recent contributions of McAlexander et al. (2002) and Garbarino and Johnson (1999) as they relate to building
customer loyalty. We conceptually model the influences of brand community integration (BCI), relationship orientation, satisfaction, and consumer
experience on loyalty as expressed by indicators of purchase behavior and repurchase intent. Figure 1 displays the conceptual framework from which
our hypotheses are developed. Informed by Garbarino and Johnson's (1999) findings, our conceptual model focuses on consumers who have
expressed a willingness to engage in a marketplace relationship. In our case, we identify consumers who have enrolled in a relationship marketing
program (the Gamers Club) as "relationship oriented." As indicated by McAlexander et al. (2002), we approach brand community integration
as the cumulative connections of consumers with
Hlb: the product, the brand, other consumers, and the company. We
General satisfaction is not associated w find the arguments regarding the influential role of customer
loyalty for the more experienced relations experience (Garbarino and Johnson 1999; Oliver 1999) to be
consumers.
compelling and we explicitly integrate aggregate customer experience as an element of our conceptual model.
Brand Community Integration, satisfaction, and lo second and third sets of hypotheses empirically e FIGUREI
extend the assertions of McAlexander and his c BRAND COMMUNITY INTEGRATION, SATISFACTION, AND LOYALTY
(2002) regarding the impact of brand community i
upon loyalty.
First, we hypothesize that brand community integration will be positively related to customer satisfaction. This hypothesis H2a(^X S
satisfaction J General I J ' L 'Hia(+)
comes from the observation that those who enroll in relationship programs sometimes anticipate benefits that pertain to
aspects of brand community. For that reason, as indicated by the large body of work in the comparison-
Í Comity L
standards paradigm commonly applied in satisfaction related I Integration I research (Fournier and Mick 1 999; Oliver 1 997), the degree
to
which an expectation of community-related benefits is successfully achieved should have a bearing upon overall
satisfaction. Moreover, with the experiences gained through consumption, additional benefits unfold which may also have a
bearing on satisfaction. Next, we examine directly the relationship between brand community integration and loyalty. B. More
Experienced Gro
H2: Brand community integration is associated positively with satisfaction for (a) less experienced relationship-
oriented consumers and (b) more experienced relationship- oriented consumers.
J yS H2b(^X I
General satisfaction H3: with Brand brand community loyalty for integration L
(a) less experienced is associated relationship-
N.
positively
oriented consumers and (b) for more experienced relationship-oriented consumers. I H3b(+) T Customer j
ÍBrand Integration Community j I J
Indirect effect of brand community integration on customer loyalty through satisfaction. Our final set of hypotheses
integrates prior conceptual and empirical work that indicates that the accumulation of customer experience impacts the way
Hypotheses
in which satisfaction and brand community bear upon customer loyalty (Oliver 1999; Garbarino and Johnson 1999;
Our model leads to several hypotheses that pertain to the relationships that exist among customer experience,
satisfaction, brand community integration, and loyalty. Our initial set of hypotheses, Hu and Hlb> reexamine and extend
Garbarino and Johnson's (1999) work that challenges the contribution of satisfaction to loyalty for relationship-oriented
consumers. By explicitly examining the effect of experience on the satisfaction/loyalty equation for relationship-oriented
consumers we integrate Garbarino and Johnson's work with the conceptual work of Oliver (1999). We anticipate that the impact
of satisfaction on loyalty will diminish as relationship- oriented customers gain experience:
McAlexander, et al. 2002). We propose in H^ that the effect of satisfaction on customer loyalty differs between the less
experienced group (significant effect) and the more experienced group (non-significant effect). We also maintain in H2
and H3 that brand community integration is related positively to satisfaction and loyalty for both the less experienced
group and the more experienced group. Tying these hypotheses together, we anticipate that brand community integration has both a
direct effect and indirect effects through satisfaction on customer loyalty for the less experienced group, but that the indirect
effect of BCI through satisfaction wanes with the accumulation of additional experience. For that reason, we expect that it is only the
main effect of brand
Hla: General satisfaction is associated positively with customer loyalty for less experienced relationship-oriented
community integration that drives customer loyalty for the more experienced group. Therefore, we hypothesize that:
consumers.
Fall 2003 3
"The H4a: Satisfaction mediates the effect of brand community
dealer makes it enjoyable. She's there to enjoy herself integration on customer loyalty for the less experienced
and she would like you to enjoy yourself while you are losing relationship oriented consumers.
your money." H4b: Satisfaction does not mediate the effect of brand community integration on customer loyalty for the
more
We observed that a strong bond to the casino was directly tied experienced relationship oriented consumers.
to feelings of consciousness of kind and moral responsibility (Muñiz and O'Guinn 2001). For example, we found these
METHOD
expressions of community as patrons reported their defense of the casino to a local community that had vehemently fought its The
empirical exploration of the model consists of introduction. qualitative
Many prominent members of the local and quantitative research using the gaming industry community as viewed the
the introduction of a casino as morally focal point. Qualitative work affords the opportunity destructive. Further, to
they were unhappy that it was being built explore the applicability of the brand community on a concept site that had to
been commercially productive and a the research setting, and to examine the nature significant of relevant
source of "family-wage" employment. relationships and their bases of formation. We ground our quantitative work in the
qualitative research experience.
As well as verifying the applicability of the brand community concept and existence of relevant relationships in the casino,
Qualitative Research
the qualitative work further emphasized for us the importance of gauging the impact of experience on the development of
Qualitative work included participant observation community and depth
and loyalty. We found that some who enroll in the interviews conducted at the Shadow Mountain Casino
Gamers Club loyalty program intend to experience the casino (disguised). Participant observation research consisted of three
often. We found others who enroll in response to specific
full days (one weekday and one full weekend) spent by a two-
short-term inducements (i.e. meal discounts). person research team in the casino. The research team participated in all
games offered (e.g., blackjack, poker, bingo,
Measure Development
and slots), ate meals in all restaurants and the bar, and attended a scheduled concert. Participant observation research was
Our qualitative research was also important to the supplemented by exploratory depth interviews with twelve
development of the survey measures that we used for casino patrons. Interviews were video-recorded. Informants
quantitative research. We developed multi-item measures for were selected using a convenience sampling method, based
each construct as indicated from interviews with casino
upon a desire to interview a sample that was diverse with
managers, employees, and players. Our measures were also
regard to games played, gender, and age.
informed by prior academic empirical studies and trade publications and concordant with the recommendations by
Community in the Casino
Churchill (1979). Measurement items are reported in the Appendix. Our experiences in the casino uncovered the existence
of a vital brand community. We noted multiple dimensions of
Customer loyalty. We define customer loyalty as the extent to brand community as discussed by Muñiz and O'Guinn (2001)
which a customer patronizes the casino and desires to maintain and evidence of the formation of the relationships described an by
ongoing relationship with the service provider (Singh and McAlexander et al. (2002). We found, for example, that the
Sirdeshmukh 2000). We operationalize it as a formative scale casino is a very socially-oriented environment for many
with a respondent's patronage behavior and future intention to gamers. As an element of brand community, these
return to the casino. We measured customer patronage by the intercustomer relationships add pleasure and value to the
proportion of the number of visits to Shadow Mountain Casino gaming experience. We noted camaraderie among blackjack
out of the total number of visits made to casinos in the last players and friendly competition among poker players. In three the
months (an indicator of a the casino's share of a
large bingo hall we found intricate rituals as groups of players
customer's visits). We measured future intention by asking the assembled their different daubers and good luck tokens,
respondent's desire to return to Shadow Mountain Casino.
arrayed their bingo cards and got serious about playing bingo
Two items of Likert-type scale (1: strongly disagree - 7: and being with one another.
strongly agree) were used for this purpose.
The existence of a strong customer to company relationship
Customer satisfaction. We defined customer satisfaction as a was demonstrated repeatedly as casino staff cordially
respondent's overall evaluation of the experience with the interacted with us and other gamers as we entered the casino
casino and operationalized it as the extent to which the and engaged in casino activities. When asked how the casino
respondent is happy with the overall casino experience and staff impacted her gaming enjoyment, a female informant
whether the experience exceeds his/her expectations. These described the ways in which staff can be integral to items her
have been used extensively in prior research (see Oliver experience:
1997 for a review of measures). Two Likert-type items (1:
strongly disagree - 5: strongly agree) were used for this purpose.
Brand community integration. Following the lead of McAlexander, Schouten, and Koenig (2002), we
conceptualized brand community integration as a multi- component construct: a customer's relationship with brand, product
(casino services in this case), company (casino workers and management), and other customers. We developed
multi-item measures for each component of brand community integration. The brand component reflects the brand associations
that informants conveyed to us in the qualitative work as well as an indicator of the consumers willingness to identify with
the brand. The brand associations revealed to us include what consumers perceive as unique qualities of the casino,
such as a welcoming feeling. We operationalize identification with the brand as a desire to wear casino branded apparel. Five
Likert-type items (1: strongly disagree - 5: strongly agree) were used for this purpose.
The product component we operationalized as a customer's attribute-based experience with the casino services. Twelve
attributes of casino service were identified and respondents were asked to evaluate each attribute on a five-point scale (1 :
poor - 5: outstanding). The company component we operationalize as a customer's perception of friendliness and
fairness of staff and employees at the casino. Three Likert-type items (1: strongly disagree - 5: strongly agree) were used for this
purpose. The other customer component concerns the extent to which a customer enjoys the company of other customers at
the casino. We used two Likert-type items (1: strongly disagree - 5: strongly agree) for this purpose.
Sampling and Data Collection
The sampling frame was a list of players who enrolled in the casino's loyalty program. A random sample of 1000 players was
selected from the list. Data collection began with a letter to the chosen players that introduced the research project. A few days
later, the first wave of questionnaires was sent with a cover letter. The cover letter offered an incentive of a free
dinner for two in appreciation for survey participation. A follow-up questionnaire was sent three weeks later to those that had
not responded to the original questionnaire. The final response rate was 41.5% (415 out of 1000 sent). After eliminating
some of the returned questionnaires because of such things as incomplete information, 372 responses were used for analysis.
Nonresponse bias check. Nonresponse bias was assessed in two ways. First, according to Armstrong and Overton's (1977)
procedure, no significant differences were found (p > .10) between the early respondent group and the late respondent group
for any of the constructs in the model. In addition, the response group was compared with the nonresponse group on
demographic characteristics such as age and income. No significant differences were found between the two groups.
These results offer evidence that nonresponse bias is not a
significant problem for this study.

Measure Validation
The measurement items were subject to validation process in accordance with the recommendations by Gerbing and
Anderson (1988). They were first examined in terms of their item-to-total correlations. For the four components of brand
community integration, all inter-component correlations are larger than .31 and significant at p <.001. Therefore, four
components are summed to develop a brand community integration score for each respondent. The correlational matrix among
brand community integration, customer satisfaction, and customer loyalty suggests that brand community integration and
general satisfaction are highly correlated (y = .72, p < 001), but the correlation is still significantly different from unity.
Reliability of each measurement scale is also examined and reported in the Appendix. Coefficient alpha for every multi- item
scale is above .70, which is the typical cutoff point (Nunnally 1978). A detailed report of the scale properties and Pearson
correlations is provided in Table 1.
TABLE 1 CORRELATION MATRIX
Brand Community General Customer Mean S.D. Integration Satisfaction Loyalty
Brand 3.97 .58 1.00
Community Integration (BCI) General 3.71 .83 .72 1.00
Satisfaction
Customer 4.30 .82 .39 .25 1.00
Loyalty
Validity check. The convergent validity of the measurement scales was tested by checking correlation between
measurement scales and convergent items. For example, the customer loyalty measure is correlated with an item ("I will
recommend that my friends visit the casino") and the correlation is .33 (p < .001). For customer satisfaction, the measure
is correlated with a convergent item ("I am happy with the services I have experienced at the casino") and the correlation is .70
(p < .001). For brand community integration, the measure is correlated with a convergent item ("The casino makes a positive
contribution to the local community") and the correlation is .42 (p < .001). These results support the convergent validity of
the measurement scale items. The discriminant validity of the measurement scales was checked through exploratory factor
analysis of the scales. The measurement items were summed and average values were computed for model estimation
purpose.
Fall 2003 5
TABLE 2 MODEL ESTIMATION RESULTS
Less Experienced More Experienced
H,: General Satisfaction ■» Customer Loyalty .45b ( .21 *) -.04 ( .08)
H2: BCL -» General Satisfaction 1.06* (.08) 1.12*(.O8)
H3: BCI ■» Customer Loyalty .61b (.31) .43' (.13)
Covariate Distance to the casino ■* General Satisfaction .00b (.00) .00c (.00)
Distance to the casino ■» Customer loyalty -.01" (.00) -.01* (.00)
*:p<.0l;b:p<.05
*: standard error
FIGURE 2 MODEL ESTMATION RESLTS
ranges from one to 125 miles and the median value is eight miles.
Model .48**
Brand Community Integration on loyalty: total effect 1.09*" ■» (a) direct effect: .61**: (b) indirect effect
estimation. The proposed model was estimated by the path analysis option of LISREL 8 with a covariance matrix as
J General L 1.06- /' Mtisfaction '
/ '
an input matrix. The respondents were divided into two groups the "more experienced relationship oriented
consumers" and "less experienced relationship oriented consumers" on the basis of frequency of patronage for the last
Brand j A1M ( '
three months (i.e., median value of eight was used because of
Community
Integration I
skewed distribution of responses). To account for the influence of geographic proximity to the casino upon
patronage, we incorporate the distance between home and the casino into the model as a covariate. The hypothesized model
*:p<.10;**:p<.05;***:p<.01
was estimated through a two-group analysis. Using a two- group analysis affords two major advantages over other
estimation methods: estimation of direct and indirect effects
and the test of coefficient equality across the two groups
B. More Experienced Group
(Bollen 1989). The estimation results are reported in Table 2 and Figure 2.
Brand Community Integration on loyalty, total effect .38** •» (a) direct effect .43***; (b) indirect effect: -.OS
Effect of customer satisfaction on customer loyalty. We predicted that customer loyalty should increase as customer
J General L / satisfactìon N.
'A7rms' '
satisfaction increases for the less experienced group (Hla), but not for the more experienced group (Hlb). The estimation result
suggests that customer satisfaction has a positive effect on customer loyalty (b = .45, p < .05) in the less experienced group,
but its effect in the more experienced group is I I Integration uxnmunlty cJOSL. I
uxnmunlty supported insignificant fully.

(b = I -.04, -43#" n.s.). Therefore, Hla | and Custo Hib are
Effects of brand community integration on satisfaction. We hypothesized that customer satisfaction should increase as
•: p < .10; **: p < .05; ***: p < .01
brand community integration strengthens for both groups (H^
ANALYSIS AND RESULTS
and H2b). The estimation results indicate that satisfaction is associated positively with brand community integration for
Descriptive analysis. We characteristics of the respondents. examined 77% of the demographic
respondents experienced both the are
less (b = experienced 1.12,/? < .01), (b in = support 1.06, p of < .01) H2a and and more
H2b.
over 50 years old and 61% of the respondents are female. 58% of the respondents had a gross income of $35,000 or Effect
lower.
of brand community integration on loyalty. We The distance between the casino and a respondent's hypothesized
home
that customer loyalty should go up as brand
can community integration increases for both the less experienced
identify the relevant elements of brand community and group and the more experienced group. The model estimation
gauge success in fostering those relationships. results suggest that integration in the brand community is associated positively
with customer loyalty for both the less
By situating our research in a service setting our analysis experienced (b = .61, p < .05) and more experienced (b = .43,
provides additional evidence of the transferability of the p < .01) as was hypothesized. Thus, H3aand H3b are supported
concepts of brand community and brand community and the direct effect of brand community integration on
integration. Moreover, that the brand around which this customer loyalty is positive for both groups.
community forms differs considerably in nature from the iconic and mature brands that have been studied previously Indirect
effect of brand community integration on customer
offers evidence that the impact of the brand community loyalty through satisfaction. The total effect of brand
concept may have relevance beyond such brands. community integration on customer loyalty was calculated to unravel the
indirect effect from the direct effect. The total
Limitations and Directions for Future Research
effect of integration in the brand community on customer loyalty was 1.09 (p < .01) for the less experienced group and
The work reported here suffers from the limitations typical of .38 (p < .05) for the more experienced group. Out of these total
empirical survey research. We have, for example, examined effects, the direct effect is .61 (p < .05) and the indirect effect
only one casino, and therefore it is suspect to generalize our is .48 (p < .05) for the less experienced group. Therefore, our
findings to other casinos or settings. The measures, while hypothesis (H4a) that brand community integration has both a
derived from the qualitative work and suitable for this type of direct effect and an indirect effect through satisfaction on
exploratory research, need refinement. The multiple research customer loyalty for the less experienced group is fully
objectives associated with this survey constrained our latitude supported. For the more experienced group, the total effect is
to more fully develop measurement items. To date, scale .38, direct effect is .43 (p < .01) and indirect effect is -.05
development in the realm of brand community research is still (n.s.). Therefore, our hypothesis (H4b) that integration in the
in its infancy. Significant opportunities exist to extend and brand community does not have an indirect effect and only has
refine appropriate measures. There are other important a direct effect on customer loyalty for the more experienced
opportunities in which this work should be extended. We next group is also supported. discuss some of those.
DISCUSSION
Our
An obvious extension of this work is that the findings be tested in other marketing settings. Research is necessary to establish
findings contribute to marketing theory the and boundaries have
that may relate to the brand community implications for marketing practice. With regard to conceptualization. theory, we
As noted by Muñiz and O'Guinn (2001), provide additional evidence that the consumption experience among
customers willingness to engage in marketing relationships accumulation that we is applicability leads express publicly
find to a brand a
of
a visible. of community brand Future community in research a setting to in might which a more explore consumption
privately
the
shift wherein other forces, in this case brand community
consumed product.
integration, become more powerful in building loyalty than does overall satisfaction. This evidence, in combination A challenge
with
facing marketers is how to encourage or create
prior research, provides a strong challenge to conventional
and support brand communities around their offerings. Future
understandings regarding the antecedents of loyalty.
research should explore the kinds of community that can be replicated credibly in different settings. Also, research could To
assumption marketing that managers, to build loyalty our findings one must challenge focus the on assist possible managing
accepted
in identifying pitfalls of the cohesive existence and communities implications of as such the
customer satisfaction. As Oliver (1999) contends, satisfaction
communication of rumors or the orchestration of boycotts. As
is of greatest importance among inexperienced customers.
Muñiz and O'Guinn (2001) indicate, cohesive communities of Loyalty creation, however, is an evolutionary process consumers
driven
may create environments that foster potentially by experience. With experience, customers damaging have the
market dynamics.
connections opportunity of to brand develop community the additional that can and provide meaningful Another a strong
issue worthy of examination is to identify the bond building that the affects type of satisfaction loyalty that and can loyalty.
come from The possibility the characteristics community bonds of
of
of or consumers avoid it. that Clubs prompt and them other to consumer seek brand
brand community provides impetus for managers communities to carefully
do not work for everyone. Who stays outside and consider service-delivery the creation environment. and maintenance As a of
marketing a suitably why? are supportive
challenge,
successful? What needs Are are consumer consumers communities fulfilling when a substitute communities
for
providing that supportive environment requires attention family to or the
other, more "naturally-occurring" communities? brand holistic community consumption provides experience. marketers The a
model conceptualization from Putnam participating which they
reports of
a general trend in the U.S. against joining or in organizations and communities such as
Fall 2003 7
political parties, bowling leagues, and social clubs, such as the Elks (Putnam 2000). Does this social trend of "bowling alone"
bode well or ill for marketers attempts to build community?
Additional research is also necessary to examine the long-term implications for brand community. The literature
(McAlexander et al. 2002; Schouten and McAlexander 1995)
has suggested that integration in a brand community can build important exit barriers (e.g., friendships formed around brand
consumption, integration of the product into extended self concept) that would tend to move a consumer toward long- term
engagement. Longitudinal research would be a valuable tool for assessing the longevity of brand community.
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AUTHOR BIOGRAPHY
James H. McAlexander, (Ph.D., University of Utah) is professor of marketing and coordinator of the m at Oregon State University. Prior research has a
such publications as the Journal of Marke Consumer Research, Research in Consumer Behavior and the Journal of Marketing Theory and Practic
interests include the examination of brand community and customer loyalty.
AUTHOR BIOGRAPHY
Stephen K. Kim, (Ph.D., University of Southern California) is associate professor of marketing at Coll Oregon State University. His research interests inc
noncontractual interfirm governance, channel intera and response surface analysis. His research has appeared in Journal of Marketing, Journal of Marketi In
Journal of Research in Marketing, Journal of the Academy of Marketing Science, and oth
Fall 2003 9
AUTHOR BIOGRAPHY
Scott D. Roberts, (Ph.D. , University of Utah) is associate professor of marketing and master of science program director at Northern Arizona Univers
research has appeared in such publications as the Marketing Theory and Practice, Journal of Economic Psychology, Research in Consumer Behavior and
Consumption,Markets & Culture. His most recent research interests include the Mexican and Mexican- consumer behavior and marketing efforts to these s
Appendix Measurement
Items
I. Brand community integration

1. Brand : (c-alpha = .73) (1: disagree strongly - 5: agree strongly)
I feel welcome at the casino. I feel comfortable
at the casino.
I find the casino's atmosphere exciting. The casino is
clean.
I like to wear clothing with the casino logo.
2. Product: Please provide your overall evaluation of the services you have experienced while at the casino and the resort
(1: poor- 5: outstanding)51
a. Restaurant g. Bingo b. Slots h. Blackjack c. Poker i. Hotel
Package d. Motorcoach Trip j. Sandwich Shop e. Concert &
Events k. Weekend Dancing
f. Loyalty Club 1. Bar
3. Company (c-alpha = .71): (1: disagree strongly - 5: agree strongly)

The staffai the casino is friendly. The people who work at the casino add to the experience. I am treated fairly at the casino.
4. Company of others: (1: disagree strongly - 5: agree strongly)

I enjoy company of others at the casino. The casino is too crowded.
II. General Satisfaction (c-alpha = .77) (1: disagree strongly - 5: agree stron
1 . The casino exceeded my expectations. 2. I am generally satisfied with the casino.
III. Loyalty: (1: disagree strongly - 5: agree strongly)

How many times have you visited casinos?
I will return to the casino.
a Product component of brand community is a form b This item is dropped in the model estimation.
Fall 2003 11


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Loyalty: The Influences of Satisfaction and Brand Community Integration Author(s): James

H. McAlexander, Stephen K. Kim and Scott D. Roberts Source: Journal of Marketing

REFERENCES Linked references are available on JSTOR for this article:

This content downloaded from 203.193.156.82 on Thu, 28 May 2020 09:00:05

REFERENCES Linked references are available on JSTOR for this article:

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LOYALTY: THE INFLUENCES OF SATISFACTION AND

2 Journal of Marketing THEORY AND PRACTICE

THE CURRENT RESEARCH

CONCEPTUAL FRAMEWORK AND HYPOTHESES

satisfaction J General I J ' L 'Hia(+)

significant problem for this study.

uxnmunlty supported insignificant fully.

Mittal, Vikas, Pankaj Kumar, and Michael Tsiros (1999),

Mittal, Vikas and Wagner A. Kamakura (200 1 ), " Satisfaction,

Muñiz, Albert and Thomas O'Guinn (2001), "Brand

Nunnally, Jim C. (1978) Psychometric Theory, 2nd ed., New

Oliver, Richard L. (1999), "Whence Brand Loyalty?" Journal

Schouten, John W., and James H. McAlexander (1995),

Singh, Jagdip and Deepak Sirdeshmukh (2000), "Agency and

Loyalty Judgments," Journal of the Academy of Marketing Science, 28 (Winter), 150-67.

Pine, B. Joseph II and James H. Gilmore ( 1 998), "Welcome to

the Experience Economy," Harvard Business Review x 76 (July-August), 97-108.

Thompson, Craig J., and Maura Troester (2002), "Consumer

Trust Mechanisms in Consumer Satisfaction and

Szymanski, David M. and David H. Henard (2001),

I. Brand community integration

3. Company (c-alpha = .71): (1: disagree strongly - 5: agree strongly)

4. Company of others: (1: disagree strongly - 5: agree strongly)

III. Loyalty: (1: disagree strongly - 5: agree strongly)

I will return to the casino.

Fall 2003 11

2 Journal of Marketing THEORY AND PRACTICE

THE CURRENT RESEARCH

CONCEPTUAL FRAMEWORK AND HYPOTHESES

satisfaction J General I J ' L 'Hia(+)

significant problem for this study.

uxnmunlty supported insignificant fully.

Mittal, Vikas, Pankaj Kumar, and Michael Tsiros (1999),

Mittal, Vikas and Wagner A. Kamakura (200 1 ), " Satisfaction,

Muñiz, Albert and Thomas O'Guinn (2001), "Brand

Nunnally, Jim C. (1978) Psychometric Theory, 2nd ed., New

Oliver, Richard L. (1999), "Whence Brand Loyalty?" Journal

Schouten, John W., and James H. McAlexander (1995),

Singh, Jagdip and Deepak Sirdeshmukh (2000), "Agency and

Loyalty Judgments," Journal of the Academy of Marketing Science, 28 (Winter), 150-67.

Pine, B. Joseph II and James H. Gilmore ( 1 998), "Welcome to

the Experience Economy," Harvard Business Review x 76 (July-August), 97-108.

Thompson, Craig J., and Maura Troester (2002), "Consumer

Trust Mechanisms in Consumer Satisfaction and

Szymanski, David M. and David H. Henard (2001),

I. Brand community integration

3. Company (c-alpha = .71): (1: disagree strongly - 5: agree strongly)

4. Company of others: (1: disagree strongly - 5: agree strongly)

III. Loyalty: (1: disagree strongly - 5: agree strongly)

I will return to the casino.

Fall 2003 11

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