Sufficiency Economy Philosophy-Based Sustainability Dimensions Impact on Customer Equity and Brand Loyalty
Keywords:
Brand Sustainability Indicators, Sufficiency Economy Philosophy, Customer Equity, Brand LoyaltyAbstract
Sustainability has many dimensions; thus, this study proposes the use of the Sufficiency Economy Philosophy (SEP) of His Majesty King Bhumibol Rama IX, which strikes a balance between profitability and ethical considerations in defining the concept. This study aims to develop a theoretical model wherein sustainability perception impacts customer equity and brand loyalty. The findings could be used to develop branding guidelines. The study had two stages. First, qualitative research was used to develop brand indicators based on the Sufficiency Economy Philosophy. In-depth interviews were used to collect data from 30 respondents to supplement the literature review and develop a quantitative research data collection tool (questionnaire). This survey method was used to collect data from 568 respondents. The research findings revealed that brand sustainability indicators based on the SEP included the existing dimensions of economic sustainability, social sustainability, and environmental sustainability, and the newly added dimension of personal and health related sustainability. The Structural Equation Model revealed that sustainability perception had an impact on customer equity and subsequently brand loyalty. Path analysis revealed that sustainability perception impacts value equity and brand equity but not relationship equity. Consequently, customer value impacts the loyalty dimensions of purchase intentions, and brand effect, but not advocacy. The findings indicate that sustainability is a requirement for customers to consider a brand, based on its effect on purchase intentions. However, sustainability does not lead to any relationship or subsequent advocacy actions. Thus, future studies should incorporate other dimensions such as product quality for a more comprehensive model.
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