Abstract:
This study examines the moderating role of involvement on the relationship that exists between the dimensions of customer engagement and loyalty. Explanatory research design is used to establish the relationship between behavioural, cognitive and emotional dimensions of engagement and the loyalty of customers in the telecommunication industry, by way of the social exchange theory. The study employs a self-administered questionnaire to survey 305 mobile network subscribers. Covariance-based Structural Equation Modeling was used to analyse and test the hypotheses. The findings from the study reveal that customers’ engagement with preferred brands has a positive significant relationship with their loyalty for the brand. In addition, the level of involvement of customers moderates the relationship, such that involvement strengthens the positive relationship between customer engagement and loyalty.
Particularly, with behavioural and emotional engagement, involvement is a significant factor in enhancing loyalty. In terms of contribution, the study enhances theory by empirically testing the social exchange theory while providing credence to the observed positive relationship between customer engagement and loyalty. The moderating effect of involvement on this relationship is a relatively original contribution to empirical works on engagement. This study provides a recommendation for policy-makers and management in the telecommunication industry to encourage customer involvement, participation and co-creation in order to build stronger bonds and loyalty for their brands. It reaffirms the relevance of the roles of social media and other online engagement tools on loyalty building. The study further highlights the interdependent roles of online and offline customer engagement.
