GEN Z'S
PATH TO BRAND LOYALTY IN PHOTO STUDIOS: THE INFLUENCE OF BRAND EXPERIENCE,
COMMUNITY, AND ENGAGEMENT
Djong Surya Atmandra1, Kurnadi Gularso2
Universitas Bunda Mulia, Indonesia
[email protected]1,
[email protected]2
ABSTRACT
The photography industry, particularly photo
studios, is undergoing a significant transformation due to the development of
digital technology and social media. Generation Z, as a digital generation,
interacts with photography in unique ways, making brand community, brand
experience and customer engagement increasingly relevant for building strong
relationships with photo studios. This study aims to determine and analyze
Generation Z's loyalty to photo studios, focusing on the mediating role of
customer participation behavior and customer citizenship behavior. This study
uses a quantitative approach using Partial Least Squares Structural Equation
Modeling (PLS-SEM) to test the relationship between latent variables. Data was
collected through questionnaires distributed to Generation Z consumers in
Indonesia. The findings show that brand experience and customer engagement
significantly increase customer participation and citizenship behavior, which
in turn strengthen customer loyalty. However, brand community does not directly
influence citizenship behavior or customer loyalty, highlighting the need for a
comprehensive approach in building customer loyalty. These results have
important implications for photo studios, indicating that creating positive
brand experiences and increasing customer engagement are critical to fostering
customer loyalty, especially among Generation Z. Photo studios should focus on
improving these areas to build a stronger and more loyal customer base.
Keywords: Gen
Z, Participation Behavior, Citizenship Behavior, Brand Experience, Brand
Community, Customer Engagement.
Corresponding Author: Djong
Surya Atmandra
E-mail: [email protected]
INTRODUCTION
Photography,
which is one of the creative sub-industries, has become one of the important
pillars in Indonesia's economic growth and has become an inseparable part of
modern society, along with the increasing awareness of the importance of visual
documentation, both in the personal and professional realms (Fairus et al., 2023). In
2023-2024 it is projected that the number of Indonesian photographers, both
professional and amateur, will grow by 9.52%.
Figure
1. Growth of Indonesia's creative economy subsectors
in 2023-2024
Source: Kemenparekraf (2023)
The
photography industry is at an interesting crossroads. The growth of artificial
intelligence (AI) technology has opened up new opportunities while presenting
challenges to the photography industry (Mustafa, 2023). One of the significant AI features
disrupting the photography industry is that using only descriptive text arrays,
users can generate human-characterized images with high image quality (Mishra & Jain, 2023). However, research respondents�
Mishra & Jain (2023) had mixed views on the authenticity of the images generated by
the AI generator. Free AI images have limitations such as limited customization
options, poor image quality, overuse of styles, and copyright issues. But Mishra & Jain (2023) concluded AI can help photographers in basic image editing,
application of filters, resolution enhancement, and creation of product images
or virtual backgrounds. However,
AI also has the potential to threaten photographers' jobs with its ability to
produce photos instantly.
Command Text: <lora:id
photo:0.7>,blue id photo,1girl,necktie,solo,female faces,black hair,black
necktie,shirt,jacket,looking at viewer,(black jacket:1.3),formal,white
shirt,collared shirt,(suit:1.2),upper body,short hair,(black
suit:1.5),realistic,blue background,pure blue background,
Figure 2. Example of AI-generated photo pass with text
Source: Civitai.com (2023)
������������� Williams et al. (2021) examined the impact of disruptive innovations, particularly
digital technologies, on professional photographers in Australia. They found
that these innovations have significantly changed the landscape of the
photography industry, with photographers responding to these changes in various
ways, including adaptation (e.g., diversifying services), resistance (e.g.,
refusing to lower prices), lowering expectations, or even exiting the industry.
Disruptive innovations blur the boundaries
between professional and amateur photographers, thereby threatening the
identity and professional status of photographers (Williams et al., 2021).
Figure
3. Photographer's opinion report
on business development
Source: zenfolio.com (2024)
Take a look
at figure 3 is an annual survey report conducted by Zenfolio (2024)� The
"State of the Photography Industry Survey 2024" of 7,646 photographer
respondents, most of whom are based in North America, presents the results that
39.2% of photographers feel their business is slower than expected and not much
different from the previous year in 2023.
Figure 4. Photographer Industry Report 2024
Source: getsproutstudio.com (2024)
Another
report presented from "THE PHOTOGRAPHER'S 2024 Industry Report" (see
figure 4) surveying 1,000 professional photographers in 2023 revealed that 60%
of photographers rated their business in the past 6 months as ranging from
average to poor. In fact, 78% of photographers reported no business growth in
the past 12 months. 20% of photographers from the report emphasized the
difficulty in managing growth, finding efficient workflows, dealing with
increasing competition, and adjusting to changes in customer behavior,
including last-minute bookings. (Sproutstudio, 2024).
Figure 4. Statistics Chart of Indonesian Social
Media Users May 2024
Source:
NapoleonCat.com
(2024)
Social media is becoming an important platform for the photography industry
to interact with customers, take a look at Figure 5 statistics from NapoleonCat.com (2024) presenting information on Indonesian social
media users in May 2024, Facebook was recorded as the largest user, reaching
174 million users. Report NapoleonCat.com (2024) identifies facebook, instagram, and linkedIn
applications as all the most social media users they are aged between 18-34
years, those in that age range are the age group called generation Z. (Solomon
& Russell, 2023).
Digitalization has changed the work process of the photography business,
retaining customers not only focusing on the technical quality of photos but
also on other aspects that can improve business competitiveness and are more
oriented towards consumer and brand preferences. (Williams et al., 2021). Therefore, in such a situation, it is attributed to previous research by
Hu et al. (2020) and
Nguyen (2024) it is necessary to understand the factors that can
increase customer loyalty by involving customers in the co-creation process,
photo studios can gain valuable insights into customer preferences and needs,
especially for generation Z who are an important target market because they are
highly tech-savvy, active on social media, critical of quality, and expect
unique and personalized experiences in consuming products and services, and
value interaction and collaboration with the brands they love (Schiffman &
Wisenblit, 2019). (Schiffman &
Wisenblit, 2019).
Brand
communities are becoming increasingly relevant in the context of generation Z
who are highly active on social media, critical of quality, and expect unique
and personalized experiences in consuming products and services, and value
interaction and collaboration with the brands they love. (Schiffman &
Wisenblit, 2019). Customers on social media are able to
utilize features such as photo sharing, live stories, comment interactions and
direct messages to facilitate co-creation behavior between photo studios and
their customers, where customers actively participate in creating shared value,
which is key in building a solid brand community. (Mohammad, 2020; Sanz-Blas et al.,
2019)..
Positive,
unique, and memorable brand experiences can increase the emotional attachment
and loyalty of generation Z customers. (Fairus et al., 2023; Wang &
Yang, 2024).. Customer participation behavior and customer citizenship
behavior are two important dimensions of co-creation behavior that can enrich
the brand experience according to Yi & Gong (2013) in Rahayu (2023). Rahayu (2023). CPB involves the active participation of customers in the
production or service process, such as providing input or ideas. (Rahayu, 2023). Meanwhile, CCB includes customer behaviors that go beyond the
transaction, such as leaving positive reviews, recommending the photo studio to
others, or providing voluntary support. (Putra et al., 2020).
Customer
engagement (CE) is key in increasing customer value co-creation behavior. (Rahayu, 2023; Yen et al., 2020). High CE reflects deep customer involvement with the brand, both
emotionally and behaviorally. This can encourage customers to be more active in
customer participation behavior and customer citizenship behavior, which in
turn strengthens the brand community and increases loyalty. (Mohammad, 2020).
While there has been research examining the relationship between
brand community, brand experience, customer engagement, and customer loyalty,
research examining the mediating role of co-creation behavior from customer
participation behavior and customer citizenship behavior is limited, especially
specific to generation Z and the photography industry.
Based on the background description above, this study aims to
determine and analyze Generation Z's loyalty to photo studios, focusing on the
mediating role of customer participation behavior and customer citizenship
behavior. The benefits of this research include providing valuable insights for
photo studios on how to strengthen their relationships with Generation Z
customers, increase customer loyalty, and improve overall business performance.
By understanding the key factors that drive loyalty among this important
demographic, photo studios can tailor their marketing strategies to better meet
Generation Z's needs and preferences, ultimately leading to increased customer
retention and long-term success in the competitive photography industry..
METHOD
This study uses a quantitative
approach with the Partial Least Squares Structural Equation Modeling (PLS-SEM)
method to test the cause-and-effect relationship between latent variables in
the research model. The PLS-SEM method was chosen because of its ability to
handle complex models with relatively small sample sizes, as well as its
flexibility in accommodating various types of data and measurement scales (Hair
et al., 2022). The research instrument used in this study was a questionnaire.
This questionnaire was chosen because it allows efficient data collection from
a large number of geographically dispersed respondents, which is characteristic
of the target population of this study, namely Generation Z consumers in
Indonesia.
RESULTS AND DISCUSSION
Instrument
Testing: Validity and Reliability
Figure
6. Research Model Framework SmartPLS
Data processing
The research model tested in this study (see Figure 6) consists of
six latent constructs, namely Brand Community, Brand Experience, Customer
Engagement, Customer Participation Behavior, Customer Citizenship Behavior, and
Loyalty. The relationships between these constructs were analyzed using Partial
Least Squares Structural Equation Modeling (PLS-SEM) with the help of SmartPLS
4 software. (Ringle, Christian M., Wende, Sven, & Becker,
2024)..
The following
table presents the results of the reliability and construct validity tests for
all constructs in the research model:
Table 1. Construct Reliability and Validity
Variables |
Indicator |
Outer Loading |
Cronbach's alpha |
Composite reliability (rho_a) |
Composite reliability (rho_c) |
AVE |
Brand Community |
BC1 |
0.863 |
0.921 |
0.923 |
0.939 |
0.719 |
BC2 |
0.881 |
|||||
BC3 |
0.783 |
|||||
BC4 |
0.884 |
|||||
BC5 |
0.854 |
|||||
BC6 |
0.818 |
|||||
Brand Experience |
BE1 |
0.871 |
0.911 |
0.914 |
0.931 |
0.692 |
BE2 |
0.857 |
|||||
BE3 |
0.832 |
|||||
BE4 |
0.796 |
|||||
BE5 |
0.808 |
|||||
BE6 |
0.824 |
|||||
Customer Engagement |
CE1 |
0.869 |
0.941 |
0.945 |
0.953 |
0.771 |
CE2 |
0.893 |
|||||
CE3 |
0.915 |
|||||
CE4 |
0.883 |
|||||
CE5 |
0.840 |
|||||
CE6 |
0.867 |
|||||
Customer Participation
Behavior |
CPB1 |
0.770 |
0.892 |
0.893 |
0.916 |
0.608 |
CPB2 |
0.778 |
|||||
CPB3 |
0.837 |
|||||
CPB4 |
0.835 |
|||||
CPB5 |
0.780 |
|||||
CPB6 |
0.704 |
|||||
CPB7 |
0.747 |
|||||
Customer Citizenship
Behavior |
CCB1 |
0.790 |
0.921 |
0.924 |
0.936 |
0.646 |
CCB2 |
0.775 |
|||||
CCB3 |
0.843 |
|||||
CCB4 |
0.814 |
|||||
CCB5 |
0.861 |
|||||
CCB6 |
0.849 |
|||||
CCB7 |
0.756 |
|||||
CCB8 |
0.732 |
|||||
Loyalty |
L1 |
0.884 |
0.927 |
0.930 |
0.948 |
0.820 |
L2 |
0.923 |
|||||
L3 |
0.904 |
|||||
L4 |
0.912 |
Table 1
presents the results of the reliability and construct validity tests. Outer
loadings indicate how closely each question in the questionnaire
(indicator) correlates with the construct it is supposed to measure. The recommended outer loadings value is above 0.708 (Hair et al.,
2022). In the table above, all indicators have outer loadings values above
0.70, indicating that all indicators have a strong relationship with their
respective constructs. Thus, all indicators are declared valid.
Furthermore, construct
reliability was measured using Cronbach's alpha and composite
reliability (rho_A and rho_C). The recommended value for these two measures is
above 0.70 (Hair et al., 2022). In the table above, all constructs have
Cronbach's alpha and composite reliability values above 0.70, indicating that
all constructs have good reliability.
Based on the
results of the reliability and construct validity tests, it can be concluded
that all indicators and constructs in this study are declared valid and
reliable. This shows that the research instruments used have met
the standards needed to produce accurate and consistent data, thus
strengthening the validity of the overall research results.
Discriminant Validity
Table 2. Discriminant validity matrix of HTMT
data processing SmartPLS
BC |
BE |
CE |
CPB |
CCB |
L |
|
Brand
Community (BC) |
||||||
Brand
Experience (BE) |
0.523 |
|||||
Customer
Engagement (CE) |
0.880 |
0.459 |
||||
Customer
Participation Behavior (CPB) |
0.764 |
0.818 |
0.747 |
|||
Customer
Citizenship Behavior (CCB) |
0.480 |
0.820 |
0.532 |
0.878 |
||
Loyalty (L) |
0.449 |
0.815 |
0.480 |
0.822 |
0.857 |
Based
on Table 16, the results of this study have good discriminant validity between most constructs, because most
of the HTMT values are below the 0.90 threshold. Hair et al. (2022) suggest
that the ideal HTMT value should be below 0.85 (or 0.90 for conceptually
similar constructs) to indicate good discriminant validity.
However,
there are some construct pairs that have HTMT values close to or slightly above
0.90:
a)
Customer
Engagement (CE) and Brand Community (BC): 0.880
b)
Customer
Citizenship Behavior (CCB) and Customer Participation Behavior (CPB): 0.878
c)
Customer
Citizenship Behavior (CCB) and Loyalty (L): 0.857
This HTMT
value, which is close to or slightly above 0.90, indicates that there is little
conceptual overlap between some of the constructs. However, this does not necessarily
invalidate the overall discriminant validity. Hair et al. (2022) state that
HTMT values up to 0.85 are still acceptable as evidence of discriminant
validity, especially if there are only a few values that slightly exceed the
threshold.
In the
context of this research, the small conceptual overlap between some of these
constructs is understandable given the theoretical linkages between them. For example, Customer Engagement and Customer Participation
Behavior are expected to have a close relationship, as both are important
aspects of customer involvement in the co-creation process.
Overall, the
discriminant validity test results show that most of the constructs in this
research model are conceptually and empirically distinct from each other. Some
notes regarding the potential conceptual overlap between some constructs need
to be considered in the interpretation of future research results, but in
general they do not invalidate the overall discriminant validity of the model.
Coefficient of Determination
Table 3. R-square
R-square |
R-square |
Adjusted R-square |
Customer Participation
Behavior |
0.725 |
0.722 |
Customer Citizenship
Behavior |
0.615 |
0.611 |
Loyalty |
0.705 |
0.699 |
Table 3 shows that the research
model has a good ability to explain variations in the three dependent variables
(CPB, CCB, and Loyalty). The R-square values of all variables are high as they
are in the range of 0.50 to 0.75, indicating that most of the variance in the
variables can be explained by the independent variables in the model. The
adjusted R-square value which is also high confirms that the model still has
good explanatory power even after considering the number of independent
variables.
Predictive Relevance (Q�) Testing
Table 4. PLSpredict LV SmartPLS Data
Processing
PLSpredict LV Summary |
Q� predict |
RMSE |
MAE |
Customer
Participation Behavior |
0.715 |
0.540 |
0.397 |
Customer
Citizenship Behavior |
0.601 |
0.639 |
0.454 |
Loyalty |
0.578 |
0.656 |
0.474 |
The Q� values from table 4, for
the three endogenous variables (CPB = 0.715, CCB = 0.601, and Loyalty = 0.578)
indicate that the research model has good to excellent predictive ability. This
indicates that the model fits the data and is able to explain most of the
variation in the reflective indicators of the three constructs.
Thus, it can be concluded that this research model has strong predictive
relevance and can be used to understand the factors that influence Customer
Participation Behavior, Customer Citizenship Behavior, and Loyalty in
Generation Z customers in the photo studio industry.
Effect Size Testing (f�)
Table 5. Effect Size Test Results (F)2
f-square |
BC |
BE |
CE |
CPB |
CCB |
L |
Brand
Community (BC) |
0.038 |
0.021 |
0.015 |
|||
Brand
Experience (BE) |
0.733 |
0.939 |
0.112 |
|||
Customer
Engagement (CE) |
0.116 |
0.093 |
0.001 |
|||
Customer
Participation Behavior (CPB) |
0.057 |
|||||
Customer
Citizenship Behavior (CCB) |
0.132 |
|||||
Loyalty (L) |
Based on Table
5, it can be concluded that:
a. Brand
Experience (BE) shows a dominant influence in the model. Specifically, BE has a
large influence on Customer Participation Behavior (f� = 0.733) and Customer
Citizenship Behavior (f� = 0.939), suggesting that a positive brand experience
significantly encourages customers' active participation and supportive behavior.
The effect of BE on Loyalty is also significant, although it is in the medium
category (f� = 0.112).
b. Customer
Engagement (CE) has varying influence. On Customer Participation Behavior, the
influence is small (f� = 0.116), indicating that customer engagement
contributes but not dominantly in driving their participation. The influence of
CE on Customer Citizenship Behavior is also small (f� = 0.093). Meanwhile, its
influence on Loyalty is very small and negligible (f� = 0.001).
c. Brand Community
(BC) showed very little effect on all endogenous variables, with an f� value of
less than 0.05. This indicates that a sense of brand community, while possibly
relevant, does not have a major impact on driving participation, citizenship behavior
or customer loyalty in the context of this study.
d. Customer
Participation Behavior (CPB) has a small effect on Loyalty (f� = 0.057),
indicating that although there is a relationship, customer participation does
not substantially affect their loyalty.
e. Customer
Citizenship Behavior (CCB) has little effect on Loyalty (f� = 0.132).
The results
of this effect size test confirm that Brand Experience is
the most influential variable in explaining the variance of endogenous
variables. Meanwhile, Brand Community and Customer Engagement, although
statistically significant in the structural model, have a relatively small
effect on endogenous variables.
Hypothesis Testing
Direct Influence
Table 6. Results of Path Coefficients
Path Coefficients |
Original sample (O) |
Sample mean (M) |
Standard deviation (STDEV) |
T statistics |
P values |
Results |
|
H1 |
BC -> CPB |
0.184 |
0.187 |
0.075 |
2.456 |
0.014 |
Accepted |
H2 |
BC -> CCB |
-0.161 |
-0.157 |
0.084 |
1.908 |
0.056 |
Reject |
H3 |
BC -> Loyalty |
-0.129 |
-0.129 |
0.064 |
2.024 |
0.043 |
Accepted |
H4 |
BE -> CPB |
0.515 |
0.515 |
0.045 |
11.356 |
0.000 |
Accepted |
H5 |
BE -> CCB |
0.689 |
0.691 |
0.047 |
14.759 |
0.000 |
Accepted |
H6 |
BE -> Loyalty |
0.302 |
0.304 |
0.073 |
4.138 |
0.000 |
Accepted |
H7 |
CE -> CPB |
0.314 |
0.311 |
0.085 |
3.694 |
0.000 |
Accepted |
H8 |
CE -> CCB |
0.332 |
0.327 |
0.089 |
3.743 |
0.000 |
Accepted |
H9 |
CE -> Loyalty |
0.039 |
0.038 |
0.069 |
0.562 |
0.574 |
Reject |
H10 |
CPB -> Loyalty |
0.290 |
0.288 |
0.086 |
3.391 |
0.001 |
Accepted |
H11 |
CCB -> Loyalty |
0.373 |
0.375 |
0.097 |
3.832 |
0.000 |
Accepted |
The results of this test indicate
that most of the hypothesized relationships between the variables in this
research model are supported by the data. This means that the proposed model is
good enough in explaining how various factors influence the behavior and
attitudes of Generation Z customers towards photo studio services.
From the research results, it can be explained that:
a. A strong Brand
Community encourages customers to participate more actively and also increases
their loyalty.
b. A positive
Brand Experience has a strong impact in driving participation, good behavior,
and customer loyalty.
c. Customer
Engagement also plays an important role in increasing customer participation
and positive behavior.
d. When customers
actively participate and show good behavior, they tend to be more loyal to the
photo studio.
However, the
study also found that:
a. Brand Community
does not directly influence customers' good behavior towards the photo studio
(such as giving feedback or helping other customers).
b. Customer
Engagement does not directly affect customer loyalty.
Overall,
these findings provide a better understanding of how photo studios can build
strong relationships with Generation Z customers and encourage them to become
loyal customers.
Indirect
Effect
Table 7. Specific indirect effects
Specifit Indirect Effect |
Original sample |
Sample mean |
SD |
T stat. |
P values |
Results |
|
H12 |
BC
-> CCB -> Loyalty |
-0.060 |
-0.059 |
0.037 |
1.617 |
0.106 |
Reject |
H13 |
BC
-> CPB -> Loyalty |
0.053 |
0.054 |
0.027 |
1.985 |
0.047 |
Accepted |
H14 |
BE
-> CCB -> Loyalty |
0.257 |
0.260 |
0.072 |
3.573 |
0.000 |
Accepted |
H15 |
BE
-> CPB -> Loyalty |
0.150 |
0.148 |
0.044 |
3.401 |
0.001 |
Accepted |
H16 |
CE
-> CCB -> Loyalty |
0.124 |
0.123 |
0.048 |
2.566 |
0.010 |
Accepted |
H17 |
CE
-> CPB -> Loyalty |
0.091 |
0.091 |
0.040 |
2.306 |
0.021 |
Accepted |
Table 7 shows that CPB also mediates a small part of the effect of
Customer Engagement on Loyalty (CE -> CPB -> Loyalty, p < 0.05). In
addition, Customer Citizenship Behavior (CCB) is shown to mediate the effect of
Brand Experience (BE -> CCB -> Loyalty, p < 0.001) and Customer
Engagement (CE -> CCB -> Loyalty, p < 0.01) on Loyalty. However, CCB
does not mediate the relationship between Brand Community and Loyalty (BC ->
CCB -> Loyalty, p > 0.05).
All of the indirect effects mentioned above, except the effect of Brand
Community on Loyalty through CCB, are statistically significant (p < 0.05).
This suggests that this mediation path is supported by strong empirical
evidence (Hair et al., 2022).
These findings highlight the importance of CPB and CCB as mechanisms
that explain how Brand Community, Brand Experience, and Customer Engagement
influence Loyalty.
b. Indirect Effect Total
Table 8. Total Indirect Effect
Total Indirect Effect |
Original sample (O) |
Sample mean (M) |
Standard deviation
(STDEV) |
T statistics (|O/STDEV|) |
P values |
BC -> Loyalty |
-0.007 |
-0.006 |
0.056 |
0.116 |
0.907 |
BE -> Loyalty |
0.406 |
0.407 |
0.066 |
6.172 |
0.000 |
CE -> Loyalty |
0.215 |
0.214 |
0.065 |
3.308 |
0.001 |
Table 8 presents the total indirect effect of the independent variables
on Loyalty. Provides an overview of how the three independent variables affect
Loyalty indirectly. Brand Experience has the largest total indirect effect,
followed by Customer Engagement. While Brand Community does not have a
significant indirect effect on Loyalty because p> 0.05
c. Total Influence
Total Effect |
Original sample (O) |
Sample mean (M) |
Standard deviation
(STDEV) |
T statistics (|O/STDEV|) |
P values |
BC
-> CPB |
0,184 |
0,187 |
0,075 |
2,456 |
0,014 |
BC
-> CCB |
-0,161 |
-0,157 |
0,084 |
1,908 |
0,056 |
BC
-> Loyalty |
-0,136 |
-0,135 |
0,081 |
1,670 |
0,095 |
BE
-> CPB |
0,515 |
0,515 |
0,045 |
11,356 |
0,000 |
BE
-> CCB |
0,689 |
0,691 |
0,047 |
14,759 |
0,000 |
BE
-> Loyalty |
0,709 |
0,711 |
0,044 |
16,194 |
0,000 |
CE
-> CPB |
0,314 |
0,311 |
0,085 |
3,694 |
0,000 |
CE
-> CCB |
0,332 |
0,327 |
0,089 |
3,743 |
0,000 |
CE
-> Loyalty |
0,254 |
0,251 |
0,085 |
2,973 |
0,003 |
CPB
-> Loyalty |
0,290 |
0,288 |
0,086 |
3,391 |
0,001 |
CCB
-> Loyalty |
0,373 |
0,375 |
0,097 |
3,832 |
0,000 |
The results of table 9 analysis show
that Brand Experience (BE) and Customer Engagement (CE) have a significant
positive total effect on Loyalty. This result supports the hypothesis that
there is a positive influence of Brand Experience and Customer Engagement on
Loyalty. On the other hand, Brand Community (BC) does not show a significant
total effect on Loyalty, so the hypothesis that there is a positive influence
of Brand Community on Loyalty is not supported.
These
findings suggest that companies need to focus on improving Brand Experience and
Customer Engagement to increase customer loyalty. In addition, encouraging
their Customer Participation Behavior and Customer Citizenship Behavior can
also contribute to increased loyalty.
Based on the results of the analysis using PLS-SEM, the following
findings were obtained:
H1 (BC ->
CPB): Accepted.
H2 (BC ->
CCB): Rejected.
The results show that brand community plays an important role in
encouraging customer participation behavior. This shows that when customers
feel part of a strong brand community, they are more likely to be actively
involved in various community activities, such as sharing information,
providing feedback, or interacting with other members. However, an interesting
finding is that brand community has no significant effect on customer
citizenship behavior. This means that although customers feel connected to the
brand community, they do not necessarily exhibit voluntary behaviors that go
beyond expectations, such as providing positive recommendations or helping
other customers.
The results of this study are partly in line with previous research.
Several studies found that brand community can increase customer participation
behavior through an increased sense of belonging, social identity, and norms of
reciprocity within the community (Sanz-Blas et al., 2019; Mart�nez-L�pez et
al., 2021). However, the results related to customer citizenship behavior seem
to contradict some studies that show a positive relationship between brand
community and CCB. (Dholakia et al., 2004) for example, found that brand
community can increase CCB through increased emotional attachment to the brand
and prosocial norms in the community. This difference may be explained by
several factors, such as the characteristics of the brand community studied,
the type of industry, or cultural differences between respondents.
For photo studios, these findings demonstrate the importance of building
and maintaining a strong brand community to drive active customer engagement.
However, keep in mind that brand community alone may not be enough to encourage
broader customer citizenship behaviors. Photo studios need to consider
additional strategies to encourage CCB, such as:
a) Build strong
relationships with customers based on trust and satisfaction.
b) Create a
positive and memorable brand experience.
c) Reward or
recognize customers who demonstrate CCB.
d) Promote
prosocial norms within the community.
By combining these strategies, photo studios can create an environment
that not only encourages customers' active participation, but also inspires
them to become loyal brand advocates and contribute positively to the
community.
Based on the results of the analysis using PLS-SEM, the following
findings were obtained:
H3 (BC -> Loyalty): Accepted.
The results
showed that brand community (BC) has a positive and significant influence on
customer loyalty. This indicates that the stronger the customer's involvement
and feeling of belonging to a brand community, the greater their loyalty to the
brand. This finding is consistent with various previous studies that have
identified brand community as an important factor in the formation of customer
loyalty. Mart�nez-L�pez et al. (2017) explain that brand communities can
facilitate interactions and emotional bonds between consumers and brands, which
ultimately lead to increased loyalty.
Theoretically,
the positive influence of brand community on loyalty can be explained through
several perspectives. First, social identity theory states that individuals
tend to exhibit behaviors that conform to the norms and values of the group
with which they identify. In the context of brand community, when customers
feel part of the community, they will be more likely to show loyalty to the
brand as a form of social conformity. Second, brand communities can strengthen
brand trust through interaction and information exchange between community
members. High trust in the brand is an important factor in building customer
loyalty (Mart�nez-L�pez et al., 2021). Third, brand communities can increase
customer engagement through various activities and interactions that occur in
them. High customer engagement has been shown to have a positive influence on
customer loyalty (Brodie et al., 2013).
For photo
studios, these findings confirm the importance of building and managing an
active and positive brand community. By providing a platform that facilitates
interaction, collaboration and experience sharing among customers, photo
studios can create an environment that encourages loyalty.
Some strategies that can be
implemented include:
1)
Build an active presence on social media: Use social media platforms to interact with customers, share
interesting content, and answer questions or comments.
2)
Organize regular community events or activities: Whether online or offline, these events can strengthen the bond
between community members and increase their engagement with the brand.
3)
Reward or recognize active community members: This can increase customers' motivation to contribute to the
community and strengthen their sense of belonging.
4)
Facilitate the value co-creation process: Involve customers in the development of new products or
services, so they feel valued and have influence over the brand.
By
implementing these strategies, photo studios can build a solid brand community
and increase customer loyalty, which will ultimately have a positive impact on
long-term business success.
Based on the results of the
analysis using PLS-SEM, the following findings were obtained:
H4 (BE ->
CPB): Accepted.
H5 (BE ->
CCB): Accepted.
The results
showed that brand experience has a significant positive influence on both
customer participation behavior (CPB) and customer citizenship behavior (CCB).
That is, the more positive the experience customers feel towards the brand, the
more likely they are to be actively involved in community activities and
demonstrate behaviors that support the brand and help other customers. This
finding is in line with previous research which shows that a positive brand
experience can increase customer engagement and encourage them to contribute
more to the brand (Akoglu & Ozbek, 2022; Mostafa & Kasamani, 2021).
Theoretically,
these results can be explained through the stimulus-organism-response (SOR)
theory, which states that environmental stimuli (in this case, brand
experience) can affect individuals' internal states (such as emotions and
attitudes), which in turn will affect their behavior (such as CPB and CCB). In
addition, previous research also shows that brand experience can influence CCB
through the mediation of brand relationship quality (Xie et al., 2017). In this
context, a positive brand experience can strengthen the relationship between
customers and brands, which in turn can encourage customers to exhibit greater
citizenship behavior.
This finding
confirms the importance of creating a positive and memorable brand experience
for photo studio customers. By providing a satisfying experience and meeting
customer expectations, photo studios can encourage them to engage more actively
in the community, provide constructive feedback, recommend the studio to
others, and even help other customers.
Some
strategies that can be implemented to improve brand experience include:
a)
Provide
quality and responsive customer service.
b)
Create a comfortable
and fun studio atmosphere.
c)
Offer
innovative and high-quality products or services.
d)
Using
technology to improve customer experience, such as providing online booking
services or mobile apps.
e)
Build
positive personal interactions with customers.
By focusing
on enhancing brand experience, photo studios can create customers who are not
only loyal, but also become active brand advocates and contribute positively to
the community.
Based on the results
of the analysis using PLS-SEM, the following findings were obtained:
H6 (BE -> Loyalty): Accepted.
The results
showed that brand experience (BE) has a significant positive effect on customer
loyalty. This indicates that a positive and memorable brand experience will
increase customer loyalty to the brand.
This finding
is consistent with previous studies that have identified brand experience as an
important factor in shaping customer loyalty. Garzaro et al (2021) show that a
positive brand experience can increase customer satisfaction and loyalty. This
is also supported by Akoglu and Ozbek's research (2022) which found that brand
experience has a positive direct effect on brand loyalty.
Theoretically,
the positive influence of brand experience on loyalty can be explained through
several perspectives. First, the stimulus-organism-response (SOR) theory
explains that environmental stimuli (brand experience) can affect the internal
state of individuals (such as emotions and attitudes), which in turn will
affect their behavior (such as loyalty).
Second, a
positive brand experience can strengthen customer trust in the brand (Akoglu
& Ozbek, 2022). High trust in the brand is an important factor in building
customer loyalty.
Third,
Mostafa and Kasamani's research (2021) shows that emotional brand attachment
mediates the relationship between brand experience and brand loyalty.
This finding
confirms that creating a positive and memorable brand experience is essential
for photo studios in building customer loyalty. By providing an experience that
is pleasant, unique, and meets customer expectations, photo studios will not
only encourage repeat purchases, but will also encourage customers to recommend
the studio to others and become loyal brand advocates.
Several
strategies can be implemented to improve brand experience:
a)
Recognize
customer preferences and provide services that suit their needs and wants.
b)
Offer
something different and unforgettable, such as a creative photo theme or
concept.
c)
Ensure
high-quality photos and friendly, responsive customer service.
d)
Use technology to enhance the experience: For example,
offer a mobile app for easy booking and viewing of photo galleries.
e)
Build emotional interactions with customers by involving them in the photo-taking process, giving them
personalized attention, and making them feel valued.
By focusing
on improving brand experience, photo studios can create customers who are not
only loyal, but will also become brand advocates who will help promote the
studio to others.
Based on the
results of the analysis using PLS-SEM, the following findings were obtained:
H7 (CE ->
CPB): Accepted
H8 (CE ->
CCB): Accepted
The results
clearly show that customer engagement has a significant positive impact on both
customer participation behavior (CPB) and customer citizenship behavior (CCB).
Simply put, the higher the level of customer engagement with the brand, the
more likely they are to actively participate in various brand-related
activities, such as seeking and sharing information, and exhibiting behaviors
that are beneficial to the company and other customers, such as providing
feedback, advocacy, helping, and tolerance.
This finding
is consistent with previous studies. For example, Mohammad's (2020) research
shows that customer engagement can drive brand community-related behaviors,
such as visits and participation in community activities. In addition,
Abdel-Aziz et al. (2023) also found that customer engagement has a positive
effect on value co-creation, which involves active customer participation and
citizenship behavior.
Theoretically,
these results can be explained through social exchange theory, which states
that individuals tend to reciprocate positive actions they receive. In this
context, when customers feel engaged with the brand, they feel they have
received benefits from the brand. In return, they will be more motivated to
actively participate in the brand community and exhibit behaviors that support
the brand.
This finding
underscores the importance of improving customer engagement for photo studios.
By increasing customer engagement, photo studios can not only encourage active
participation in the brand community, but also inspire customers to exhibit
behaviors that are more beneficial to the company and other customers.
Some
strategies that can be implemented to increase customer engagement include:
a)
Creating content that
is high-quality and relevant to customers' interests can capture their
attention and encourage them to interact with the brand.
b)
Respond actively to customer feedback and comments. This shows that the photo studio values customers' opinions and
is willing to listen to them.
c)
Organize interesting contests or
promotions. This can increase customer engagement and give them an incentive
to interact with the brand.
d)
Personalize the customer experience by providing recommendations or special offers based on customer
preferences and behavior.
By improving
customer engagement, photo studios can create a more active and loyal customer
community, which will ultimately have a positive impact on business growth.
The Effect of Customer Engagement
on Customer Loyalty
Based on the results of the
analysis using PLS-SEM, the following findings were obtained:
H9 (CE -> Loyalty): Rejected.
The results
show that customer engagement (CE) does not have a significant direct effect on
customer loyalty. This result is quite interesting because it contradicts some
previous studies which state that CE can increase customer loyalty directly.
The results
of this study are not in line with several previous studies, such as Harrigan
et al. (2017) who found that customer engagement has a direct influence on
brand loyalty. However, this result is in accordance with the research of Li et
al. (2020) who also found that customer engagement has no direct influence on
brand loyalty in the context of social media tourism.
Li et al.
(2020) explained that this may be due to the unique characteristics of tourism
services, such as their lack of transparency and intangible nature, which may
lead to high risk perception in customers. In such a situation, customers tend
to rely more on other factors, such as brand attachment and trust, in forming
their loyalty to the brand.
Although
customer engagement does not directly influence customer loyalty, it does not
mean that customer engagement is not important. Customer engagement is still an
important factor in building strong relationships with customers and can
influence loyalty indirectly through other variables, such as brand attachment
and trust.
Therefore,
photo studios still need to work on improving customer engagement through
various strategies, such as:
a)
Create engaging and relevant content on social media.
b)
Respond actively to customer feedback and comments.
c) Organize
contests or attractive promotions.
d)
Personalize the customer experience.
In addition,
photo studios need to strengthen brand attachment and customer trust, for
example by:
a)
Conveying clear and consistent brand values.
b)
Create unique and memorable brand experiences.
c)
Establish transparent and honest communication with customers.
d)
Handle customer complaints and problems quickly and effectively.
As such,
photo studios can build strong relationships with customers, which will
ultimately lead to increased loyalty.
Based on the
results of the analysis using PLS-SEM, the following findings were obtained:
H10 (CPB
-> Loyalty): Accepted.
H11 (CCB
-> Loyalty): Accepted.
The results
emphatically show that both customer participation behavior (CPB) and customer
citizenship behavior (CCB) have a significant positive influence on customer loyalty.
This means that when customers are actively involved in the value co-creation
process (which is reflected in CPB) and exhibit behaviors that benefit the
company and other customers (which is reflected in CCB), they tend to become
more loyal to the brand or company.
This finding
is in line with various previous studies that have identified CPB and CCB as
important factors in the formation of customer loyalty.
CPB and Loyalty:
Research by
Mursid & Wu (2022) shows that although CPB does not have a direct influence
on customer loyalty in the context of Umrah travel, CPB can increase loyalty
indirectly through increased value co-creation and customer satisfaction.
CCB and Loyalty:
Research by
Hu et al. (2020) found that CCB mediates the effect of business model design on
customer loyalty, indicating that CCB is an important factor in increasing
loyalty.
Theoretically,
the positive influence of CPB and CCB on loyalty can be explained through
several perspectives.
1.
Social Exchange Theory: This theory states that individuals tend to reciprocate positive
actions they receive. In this context, when customers actively engage in value
co-creation (CPB) and exhibit helpful behavior (CCB), they feel they have made
a positive contribution to the company. In return, they will feel more attached
and loyal to the brand or company.
2.
Justice Theory:
This theory states that individuals will feel satisfied and committed to a
relationship if they feel they are being treated fairly. In this context, when
customers feel that their contributions in value co-creation (CPB) and their
citizenship behaviors (CCB) are valued and recognized by the company, they will
feel fairly treated and will be more loyal to the brand.
The findings
provide strong evidence that encouraging CPB and CCB is a very effective
strategy for photo studios to increase customer loyalty. Some strategies that
can be implemented include:
1.
Involve
customers in the decision-making process, such as choosing a photo theme or
concept, and give them the opportunity to provide feedback on their experience.
2.
Appreciate
and recognize the contributions of customers who provide constructive feedback,
recommend the studio to others, or help other customers.
3.
Create a
platform or forum where customers can interact, share experiences, and support
each other.
4.
Handle customer complaints and problems quickly and effectively. This will
show that the photo studio cares about customers and is willing to provide
satisfactory solutions.
By
encouraging CPB and CCB, photo studios will not only gain loyal customers, but
also customers who will actively promote the brand and contribute to long-term
business success.
Through Customer Citizenship
Behavior (CCB) Influence on Customer Loyalty
Based on the
results of the analysis using PLS-SEM, the following findings were obtained:
H12 (BC ->
CCB -> Loyalty): Rejected
H14 (BE ->
CCB -> Loyalty): Accepted.
H16 (CE ->
CCB -> Loyalty): Accepted.
The results
showed that although brand community can encourage customer citizenship
behavior, CCB does not act as a significant mediator in the relationship
between brand community and customer loyalty. This may indicate that there are
other factors that are more instrumental in explaining the relationship between
brand community and loyalty, or there may be limitations in the measurement of
CCB variables in this study.
On the other
hand, brand experience and customer engagement are shown to have a significant
indirect effect on customer loyalty through CCB. This suggests that positive
brand experience and high customer engagement can encourage citizenship
behavior which in turn will increase customer loyalty.
This finding
is partly in line with previous research. Some studies found that CCB can
mediate the relationship between antecedents such as customer satisfaction,
service quality, and trust in the brand with customer loyalty (Zeithaml et al.,
1996; Dagger & Sweeney, 2006). However, other studies also show that the
mediating effect of CCB is not always significant (Halim et al., 2020).
Theoretically,
the mediating effect of CCB on loyalty can be explained through social exchange
theory and fairness theory. When customers feel they are treated fairly and
receive benefits from the brand (through positive brand experiences or high
customer engagement), they will be more likely to reciprocate by exhibiting
citizenship behaviors that benefit the company and other customers. These behaviors, in turn, can increase
their loyalty to the brand.
For photo
studios, these findings suggest that while building brand community is
important, focusing on improving brand experience and customer engagement may
be more effective in driving CCB and ultimately customer loyalty.
Some
strategies that can be implemented include:
a.
Create a positive and memorable brand experience: Ensure that every customer interaction with the photo studio,
from the first visit to after-sales service, leaves a positive and satisfying
impression.
b.
Increase customer engagement: Engage customers in various activities, such as photo contests,
workshops, or community events, to build closer relationships and increase
their emotional attachment to the brand.
c.
Reward and recognize customer citizenship behavior: Reward
customers who provide constructive feedback, recommend the studio to others, or
help other customers. This can encourage similar behavior in the future and
strengthen their loyalty.
By
implementing these strategies, photo studios can create a favorable environment
for CCB, which in turn will increase customer loyalty and provide long-term
benefits to the business.
Based on the
results of the analysis using PLS-SEM, the following findings were obtained:
H13 (BC ->
CPB -> Loyalty): Accepted.
H15 (BE ->
CPB -> Loyalty): Accepted.
H17 (CE ->
CPB -> Loyalty): Accepted.
The results
clearly show that customer participation behavior (CPB) has a significant
mediating role in the relationship between brand community (BC), brand
experience (BE), and customer engagement (CE) with customer loyalty. Simply
put, when customers are actively involved in the value co-creation process,
this will strengthen the relationship between the three antecedents and
customer loyalty.
This finding
is in line with various previous studies. Carlson et al.'s research (2018)
shows that CP has a positive influence on various forms of value, including
functional, emotional, relational, and entitative values, which in turn can
improve brand relationship performance, including loyalty.
In addition,
research by Mursid & Wu (2022) also found that although CPB does not have a
direct influence on customer loyalty in the context of Umrah travel, CPB can
increase loyalty indirectly through increased value co-creation and customer
satisfaction.
Theoretically,
the mediating role of CPB in influencing loyalty can be explained through
several perspectives. First, service-dominant logic (SDL) theory emphasizes the
importance of customer participation in the value co-creation process. When
customers are actively involved in co-creating value with the company, they
will feel more connected to the brand and are more likely to show loyalty.
Secondly, CPB
can improve customer brand experience. A positive brand experience, in turn,
can increase customer loyalty. Third, CPB can strengthen the relationship
between customers and the brand community. A strong brand community can
increase customers' emotional attachment to the brand, which in turn can
increase loyalty.
For photo
studios, this finding shows that customer participation behavior is a key
factor in increasing customer loyalty. Therefore, photo studios should actively
encourage customers to participate in various brand-related activities.
Some
strategies that can be implemented include:
1.
Provide platforms and opportunities for customers to actively
participate: This could
be an online forum, photo contest, or photography workshop.
2.
Encourage customers to provide feedback and suggestions: This will make customers feel valued and listened to, and
provide valuable insights for the photo studio to improve their services.
3.
Facilitate collaboration and co-creation between customers and
brands: Involve customers in the process
of developing new products or services, or organize events where customers can
share their creativity.
By
encouraging CPB, photo studios can enhance brand experience, strengthen
relationships with the brand community, and ultimately increase customer
loyalty.
CONCLUSION
This study has successfully revealed the
significant role of brand community, brand experience, and customer engagement
in shaping customer loyalty in photo studios, especially through the mediating
role of customer participation behavior (CPB) and customer citizenship behavior
(CCB). The results of this study provide empirical evidence supporting the
importance of building strong brand communities, creating positive brand
experiences, and increasing customer engagement to achieve sustainable loyalty,
especially among Generation Z. Generation Z, as the main respondent group in
this study, is a dynamic and evolving young generation. Their preferences and
behaviors tend to change over time, so their loyalty to a brand can be
influenced by various evolving factors. In addition, their income being at the
minimum average range may also influence their purchasing decisions and
engagement with brands, especially in the photography industry which is often
considered a secondary or tertiary need. The findings of this study show that
although Generation Z has unique characteristics, brand community, brand
experience, and customer engagement still play an important role in shaping
their loyalty to photo studios. This suggests that marketing strategies that
focus on building community, creating positive experiences, and increasing engagement
remain relevant and effective to attract and retain customers from this
generation. However, it is important to remember that other factors, such as
price, product innovation, and social trends, can also influence Generation Z's
interest in photography and their loyalty to photo studios. Therefore, photo
studios need to continuously monitor and adapt to the changing preferences and
behaviors of Generation Z, as well as consider economic factors in developing
their marketing strategies. By understanding the unique characteristics of
Generation Z and the factors that influence their interest in photography,
photo studios can create more relevant and meaningful experiences, thereby
strengthening relationships with customers from this generation and achieving
long-term business success.
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