Effects of Online Brand Community on Value Creation Practices and Brand Loyalty: Mediating Effects of Community Loyalty

Yongsoo Ha, Purdue University

Abstract

Online brand community refers to a specialized, non-geographically bound, online group of consumers, based on social communications and relationships among brand’s consumers. This study has four objectives; (a) testing the effects of online brand community by a sum of community markers, (b) testing the effects of online brand community on value creation practices and brand loyalty, (c) testing the mediating effects of community loyalty in a relationship between value creation practices and brand loyalty, and (d) testing the effects of consumers' motivation for participation on online brand community. A survey-based empirical study was conducted. Data were collected, using Amazon Mechanical Turk, from members of online brand communities. Data were analyzed through structural equations modeling using AMOS 20. Test results showed that, as hypothesized, as community markers strengthen, the levels of online brand community increase. Online brand community showed significant effects on value creation practices and brand loyalty. Community loyalty mediated the relationship between value creation practices and brand loyalty, and hedonic motivation for participation moderated the effects of online brand community on value creation practices.

Degree

Ph.D.

Advisors

Feinberg, Purdue University.

Subject Area

Business administration|Marketing

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