(In) Direct Effects of Customer-Defined Market Orientation on Brand Loyalty through Purchase Intention and Brand Image: A Parallel Mediation Approach

Abstract

This study investigates the impact of market orientation on brand loyalty, primarily through variables pertaining to the purchase intention and brand image. In order to achieve this aim, this study have resorted to testing the relationships between customer-defined market orientation and purchase intention, and the brand image, leading to brand loyalty. In this regard, the study is quantitative in nature, and uses the cross-sectional design. For this purpose, the primary data were collected from gold jewelry customers (n = 413) from Karachi, Pakistan. Three key findings emerged from the structural model testing. The first finding revealed that the customer, competitor and interventional orientation are positively associated with the purchase intention, brand image and loyalty of gold jewelry customers. Secondly, in simple mediation, the purchase intentions and brand image tend to fully mediate the impact of customer orientation, and competitor orientation on the brand loyalty of gold jewelry customers, while partially mediating the association between the interfunctional coordination and brand loyalty. The third finding revealed that, in parallel to the mediation effect, the impact of customer, competitor and interfunctional orientation on brand loyalty is fully mediated by the purchase intention and brand image. This research is useful for gold jewelry businesses and business owners, since on a comparative level, less research has been conducted in the domestic industry of Pakistan.