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ACADEMIC PAPERS

Effects of consumer perceptions


of brand experience on the web:
Brand familiarity, satisfaction
and brand trust
Received in revised form.

Hong-Youl Ha
Hong-Youl Ha is a doctoral candidate of marketing at Manchester Business School in the
UK. He is an active researcher and is very interested in consumer behavior, services and
pricing in the online environment. His work has been published in the Journal of
Computer-Mediated Communication, the Journal of Product and Brand Management,
the Marketing Review, the Journal of Consumer Behavior, the Journal of Strategic
Marketing, International Journal of Consumer Studies, and the Journal of Current Issue
& Research in Advertising.

Helen Perks
Helen Perks is a senior lecturer of marketing at Manchester Business School. Helen's
research interests lie in two domains: New Product and Service Development and Inter-
organisational Relations. She regularly publishes in international journals such as
Industrial Marketing Management, Journal of Product Innovation Management and the
International Journal of Innovation Management.

Abstract
Creating a customer experience that is synonymous with a particular (website) brand is becoming
increasingly recognised as a vital driver of e-performancc. E-tailors are just as likely to try to
influence consumers' shopping behaviour, through atmospherics ami service, as brick-arid-mortar
stores. This study investigates several questions that have been left unanswered in recent studies
of consumer behaviour in the context of internet-based marketing. Its focus lies in addressing the
issue ofivhether there is a direct relationship between brand experience and brand trust or whether
there is an indirect relationship via satisfaction or brand familiarity. The results of an empnricat
Keywords: study of e-consumer behaviour show that brand trust is achieved through the following
Brand experience, dimensions operating and interrelating as antecedent constructs: first, various brand experiences
familiarily, and the search for information, secondly, a high level of brand familiarity, and thirdly, customer
satisfaction, brand satisfaction based on cognitive and emotional factors. These findings should assist marketers and
trust, e-taiior, e- academics in their understanding of the development of brand trust in an internet-based
consumer behaviour environment. Copyright 2005 John Wiley & Sons, Ltd.
Hong-Youl Ha
Manchester School of
Management,
Manchester. M60
1QD, UK
INTRODUCTION mechanisms (Levy and Weitz, 2001).
7"e/;+44 (0)161 200
3465/3460 Purchasing via the internet is one of the Indeed, Forrester Research (1999)
e-mail: youl1227 most rapidly growing forms of shopping, estimates that more than 17 million
©hotmail.com;
h.perks@manchester. with sales growth rates that outpace households shopped online in 1999 and
ac.uk buying through traditional retailing about 49 million will do so in 2004. The

438 J o u r n a l o f C o n s u m e r B e h a v i o u r v o l . 4, 6, 438-452 c o p y r i g h t >r 2 0 0 5 J o h n WUey & Sons, l t d 1472-0817


.Effects of consumer perceDtions of brand exoerience on the web

average online spending by each of these Research into the relationship between
households was US$1,167 in 1999 and is brand familiarity, satisfaction and brand
estimated to be USS3,738 in 2004. This trust and the consumer's brand
environment is leading to the rapid experience in e-commerce has remained
market entry of new experience brands, limited, both in terms of the actual
developed through the innovative use of number of studies undertaken as well as
web technology (Keeney, 1999), and in the scope of these studies. The authors
leading to an increasing variety of suggest that an investigation of the
consumer experiences. Marketers are relationship between these constructs is
demanding knowledge of consumer important in order to understand
behaviour in this environment and this is e-consumers' perceptions in the context
fuelling the research challenge of a more of purchases. In particular, it has been
in-depth understanding and empirical posited that the internet experience
investigation of such e-consumer should be studied as a moderator
behaviour. variable, because this variable has been
A body of research is responding to shown to affect both consumers'
this challenge. In particular, there has perceptions of websites (Bruner and
been pronounced interest in the role that Kumar, 2000) and consumer behaviour
brand trust plays in e-consumer in electronic markets (Liang and Huang,
behaviour. A number of researchers have 1998). Furthern^ore, there is some
shown that brand trust is a critical factor evidence that brand trust may be
in stimulating purchases over the positively related to satisfaction and
internet (Quelch and Klein, 1996; Corbitt customer experience (Papadopoulou
et al. 2003). Keen (1997) argues that the ei al, 2001; Urban et al, 2000). Despite
most significant long-term barrier to these advances, the exact relationship
realising the potential of internet between brand experience, brand
marketing for consumers was the lack of familiarity, satisfaction and brand trust
trust in merchants' honesty and in their in e-commerce has remained unclear.
competence to fill internet orders. It Specifically, one crucial question has
appears that brand trust does not simply been left unanswered: Is there a direct
act as a trigger, but is based on a positive relationship between brand experience
consumer experience, with a particular and brand trust, or is there an indirect
website for example. Furthermore, the relationship via satisfaction or brand
experience plays a crucial role in familiarity?
improving brand familiarity, satisfaction This study attempts to answer this
and ultimately brand trust. It appears question. The authors propose a model
that brand experience is the preliminary that describes the relationship between
condition to consuniers' e-commerce satisfaction, brand trust and brand
participation. familiarity, taking into account and
Brand trust also has been studied in exploring the effect of brand experience.
relationship to brand satisfaction. Since consumers' experiences play a
During the past decade, both crucial role in building a long-term
marketing academics and practitioners successful business on the web, it is
have been intrigued by the relationship posited that their experiences may have a
between consumer satisfaction and critical influence on brand trust. In
brand trust (Shankar et al, 2000; particular, the authors believe that brand
Garbarino and Johnson, 1999; Shemwell experience may act as an antecedent of
el al, 1998; Johnson and Auh, 1998; relationships between brand familiarity,
Doney and Cannon, 1997). Most of satisfaction and brand trust; however, it
these studies, however, have focused is the interrelationships between these
on the outcomes of individual constructs which are of particular
satisfaction. interest.

Journal of Consumer Behaviour vol. 4, 6,438-452 Copyright < 2(K)5John Wiley&Sons, Ltd. 1472-0817 439
Honq-Youl Ha and Helen Perks

This study aims to contribute to an argue that consumer experience is a


understanding of the online experience coalescing of symbolic meaning with
of a customer. Specifically, first, it seeks allied behaviour, thoughts and feelings
to explore the linkage between customer that occur during the service/product
experience of a particular website and consumption. Consumers' brand
cumulative e-satisfaction. Secondly, the experience refers to their knowledge of
research aims to investigate how and familiarity with a brand or brand
cumulative customer experience category (Alba and Hutchinson, 1987).
translates into brand trust. The intention Experience with a brand has more impact
is to provide further understanding of than product features and benefits. It can
the link between a website's produce a deeper meaning and be more
attractiveness and customer brand trust. memorable, which can yield greater
Finally, it is hoped that the study's customer trust in the brand. As
findings will provide insights which can consumers' brand experience increases,
improve the marketers' ability to assess it has been suggested that their abilities to
e-customer behaviour. categorise brands by attributes are
The rest of the paper is organised as enhanced (Weinberg, 2001; Murphy and
follows. First, a conceptualisation for the Smith, 1982).
study is developed through the In this study, the website brand
exploration and definition of the experience is explored. The authors
constructs of the conceptual model. The define brand experience as 'a consumer's
authors do this by defining each positive navigations (ie using web-based
construct of brand experience, brand communities and participating in events)
familiarity, satisfaction and brand trust. and perceptions (ie the attractiveness of
Each construct is then explored in the cookies, variety and uniqueness of visual
context of online behaviour. For each displays and value for money) with a
construct, its relationship with the other specific website'. Increasingly, online
constructs is investigated and research customers expect websites to offer them
hypotheses are proposed. Secondly, the not just a message, but also a positive
sample and measures employed in the experience. Usually, e-consumers are
study are described, and then the more likely to use a good website that
empirical research results are reported. offers a positive experience. A good
In conclusion, the results are discussed website is one that delivers relevant and
along with the theoretical and well-organised information in an
managerial implications of the findings. engaging manner (Chen and Wells,
Finally, limitations of the study are 1999). In particular, as noted in the 1999
identified and future research directions Forrester Report, a positive experience
proposed. is what induces 75 per cent of consumers
to return to their favourite website. The
THEORETICAL BACKGROUND AND common goal is to establish a bond
CONCEPTUALISATION between a consumer and a brand as the
Brand experience consumer learns about the brand;
Fxperience has been defined as however, it depends on a positive
displaying a relatively high degree of consumer experience.
familiarity with a certain subject area, Reichheld and Schefter (2000), Kenny
which is obtained through some type of and Marshall (2000), Mcwilliam (2000),
exposure (Braunsberger and Munch, Shankar et al. (2000) and Ha (2003) have
1998). For example, a consumer who has investigated a good online experience
been through the process of information associated with familiarity and
search, decision making and/or product satisfaction with web communities.
usage would be considered to be Familiarity and brand experience are
experienced. Padgett and Allen (1997) major components of consumer

440 Journal of Consumer Behaviour Vol. 4, 6,438-452 Copyright i200'ijohnWiiey& Sons, Ltd. 1472-0817
Effects of consumer perceptions of brand experience on the web

knowledge and should have a properties influences the reactive source


considerable impact on consumer of value (ie visual appeal, entertainment
cognitive structures (Alba and and service excellence). In addition,
Hutchinson, 1987). The two terms, brand Shankar et al. (2000) and Kania (2001)
experience and brand familiarity, are suggest that the website experience,
sometimes used interchangeably, but, which provides web communities, chat,
although for low involvement, games and other events, lets customers
experience-related and non-technical enjoy various meaningful experiences
products these two components are and can enhance brand trust.
highly interrelated and perhaps In the authors' view, the level of brand
indistinguishable, the distinction experience can differ to some extent. That
generally made is that experience is, greater brand experience is not only
promotes better memory because associated with familiarity, but also
experience attributes are more vivid and impacts crucially on understanding,
concrete (Paivio, 1971) when directly enjoying, enhancing and fostering the
experienced and because experience brand. Furthermore, positive brand
requires more elaborative internal experience might show a positive
rehearsal and self-generation (Slameka reaction to pricing associated with the
and Graf, 1978). For example, consumers purchase and impact indirectly or
who do not have experience of a directly on brand trust. Many consumers
particular website will be more likely to on the internet are price seekers, rather
use extrinsic cues in brand quality than loyals. The focus of positive brand
assessments, because they have experience is on turning price seekers
relatively little intrinsic brand into trusted loyals. Therefore,
information in memory and a less hypotheses can be formulated as follows:
developed schema, making processing
intrinsic information more difficult. As H|^: A consumer with a high level of braud
consumers become more familiar with experience shell's greater familiarity with the
the brand, however, their ability to assess brand.
brand quality based on their knowledge
Hit,: A consumer who has had impressive
of intrinsic attributes, that are braud experiences shows strong satisfaction
informative about quality, improves. In associated with his/her experiences or
terms of familiarity, consumers are more purchases.
likely to be familiar with brands that
have been around for longer periods and H\y.A consumer who has had impressive brand
experiences shozvs strong trust in the brand.
have had their reputations reinforced
through brand experience {Pae et al., Brand familiarity
2002). Thus, forming brand familiarity Brand familiarity with products or
might depend on consumers' services derives from the number of
perceptions based on brand experience brand-related experiences the consumer
on the web and, in turn, the two has had (Alba and Hutchinson, 1987).
constructs are different because they Baker et al (1986) define brand
might have different consequences. familiarity as a uni-dimensional
These studies show that, with respect to construct that is directly related to the
satisfaction based on consumer amount of time spent processing
experience, it is the specific nature of the information about the brand, regardless
consumer's shopping task which of the type or content of the processing
appears to exert an influence on involved. Hoch and Deighton (1989)
perceptions of active value (ie efficiency, refer to familiarity as the number of
economic value, useful information and product-related experiences
enjoyment), whereas the interaction accumulated by the consumer.
between task depth and surface Familiarity appears to serve as an

Journal of Consumer Behaviour vol. 4, 6, 438-452 Copyright r 2005JohnWUey& Sons, Ltd. 1472-0817 441
Honq-Youl Ha and Helen Perks

umbrella term and is related, although brand's performance (eg satisfaction) in


not perfectly, to other important the stock market. It is posited here,
constructs including consumer however, that many dot.com brands
expertise, prior knowledge and strength have not yet achieved the level of
of belief. Familiarity also appears as a familiarity necessary to achieve
necessary, although not sufficient, satisfaction. HT therefore can be
condition for the development of formulated as follows:
expertise and the ability to perform
product-related tasks successfully. H2a: Positive brand experiences, coupled zmth a
sufficient amount of information search,
Research evidence also indicates that increase brand familiarity and then this
brand familiarity reduces the need for increased familiarity affects the brand
information search. For example, satisfaction positively.
Biswas's (1992) study revealed that
H2b: Greater brand familiarity leads to a higher
consumers tend to spend less time level of brand trust.
shopping for a familiar brand than they
do for an unfamiliar brand. Satisfaction
There has been very little research on Although satisfaction is recognised as an
consumer behaviour associated with important facet of n^arketing, there is no
brand familiarity on the web. Menon and general agreement on how the concept
Kahn (2002) proposed that when should be defined (Rogers et a!., 1992).
experiences, initially encountered in Oliver (1997) defines satisfaction as the
e-con:\merce situations, are judged to be consumer's fulfilment response. It is a
more pleasant by consumers they are judgment that a product or service
more Hkely to linger or explore further. feature, or the product or service itself,
Such behaviour appears to be closely has provided (or is providing) a
related to positive brand familiarity. pleasurable level of consumption-related
In this study, brand familiarity has fulfilment. This lack of a concise
been defined as a store of favourable definition further validates the
knowledge about a particular website, supposition that satisfaction does not
accumulated by the consumer's mean the same thing to everyone (Oliver,
experience. When much time is spent on 1980).
the search for information on a website, it In this study, however, e-satisfaction
can leave a deep brand impression. has been defined as the contentment of
Accordingly, it can be assumed logically customers with respect to their prior
that a high level of familiarity with a purchasing experience with a given
brand might produce feelings of greater electronic comn:\erce firm (Anderson and
satisfaction or trust (unless the consumer Srinivasan, 2003). The concept of
has a negative perception of a brand). cumulative satisfaction has been used,
The most interesting finding of a research which recognises that customers rely on
study conducted by Cheskin Research their entire experience when forming
and Sapient Responses (1999) indicated intentions and making repurchase
that there was not a strong correlation decisions. Thus, cumulative evaluations
between sin:\ple site usage and trust, should better predict customers'
instead familiarity was found to be a intentions and behaviour (Olsen and
more important indicator of brand trust. Johnson, 2003). In contemporary
The authors suggest that the marketing, it is argued that satisfaction
relationship between brand familiarity includes both cognitive and emotional
and brand trust will be affected by components. The cognitive component
another mediator, namely satisfaction, as refers to a customer's evaluation of the
well as through the direct relationship. perceived performance in terms of its
Indeed, Lane and jacobson (1995) found adequacy in comparison to some kind of
that brand familiarity influences a expectation standards (Liljander and

442 Journal of Consumer BehavlourVol.4, 6, 438-452 Copyright < 200'; John WUcy & Sons, Ltd. 1472-0817
.Effects of consumer DerceDtions of brand exoerience on the web

Strandvik, 1997; Wirtz, 1993). The on understanding real consumer needs


emotional component consists of and fulfilling them than the particular
emotions, such as happiness, surprise service or product. Brand trust goes
and disappointment (Yu and Dean, beyond consumer's satisfaction with the
2001; Cronin et al, 2000; Liljander and functional performance of the product
Strandvik, 1997; Oliver, 1993). This study and its attributes (Aaker, 1996). Brand
examines brand satisfaction by trust has been defined as 'a feeling of
considering these two factors. Because security held by the consumer in his/her
brand familiarity based on experience is interaction with the brand, such that it
strong, this points to the importance of is based on the perceptions that the brand
the cognitive factor, but experiences also is reliable and responsible for the
include emotional factors. interests and welfare of the consumer'
Customer satisfaction/dissatisfaction (Delgado-Ballester, 2001).
requires experience with the product or In this study, brand trust has been
service, and is influenced by the perceived defined as the willingness of the average
performance and the value of the products consumer to rely on the ability of the
or services (Anderson and Sullivan, 1993). brand to perform its stated function. In
With respect to perceived performance/ an online environment, the development
disconfirmation, perceived performance and maintenance of consumer brand
indirectly affects satisfaction tlirough trust on the web appears to be critically
disconfirmation (Wirtz, 1994; Richins, important, especially in the face of highly
1983), or influences it directly without unpredictable markets with reduced
parameters (Tse, 1999; Andreassen and product differentiation (Fournier and
Lindestad, 1998; Yi, 1993). Yao, 1997; Papadopoulou et al., 2001;
Customer satisfaction is closely related Urban et al, 2000). Issues surrounding
to brand trust (Delgado-BaHester privacy and security, associated with the
and Mimuera-Aleman, 2001). in major dimensions of e-brands, have
e-commerce, the dissatisfaction of made the online audience sceptical of
customers leads to negative word of e-commerce or marketing websites,
mouth regarding the inability of the particularly unknown ones. To meet this
service provider to meet consumer needs challenge, web brands must add other
(Dolinsky, 1994; Halstead et al. 1993). On dimensions—familiarity and security—
the contrary, customer satisfaction is when building brand trust. According to
associated with positive word-of-mouth Ha (2003), familiarity with a company or
communications and increases brand brand produces feelings of greater trust.
trust (Athanassopoulos et al, 2001). More Furthermore, Ha's (2003) study shows
specifically, such findings indicate that that a high level of brand commitment
when customers experience a high level of means that dot.com companies are
satisfaction, they decide to stay with the maintaining long-term relationships
existing service provider and overrule with their customers for the purpose of
their negative behavioural intentions. achieving brand trust. Hence, a
Therefore, the following hypothesis is customer-web retailer relationship, on
proposed for empirical testing: the basis of brand experience, may have a
positive effect on the level of brand trust.
H3: Based on positive experiences and Based on the above hypotheses, the
relationships, a customer who zuas satisfied by
relationships between the variables have
the perceived performance of tbe brand shows
strong trust in the brand. been summarised in Figure 1, which
illustrates the conceptual model.
Brand trust
Borrowing Bainbridge's (1997) words, a METHOD
trustworthy brand places the consumer A survey-based procedure was used to
at the centre of its world and relies more collect data for this study. The data were

Journal of Consumer Behaviour vol. 4, 6,438-452 copyrijiht * 200s John Wilcy & Sons, Ltd. 1472-0817 443
Honq-Youl Ha and Heien Perks

Figure 1: Conceptual model depicting the relationships between web brand experience, brand
familiarity, satisfaction and brand trust

collected by use of e-mail on the internet. Korea. These covered the categories of
It has been suggested that, in order to bookstores, Abata malls (a popular
understand e-consumer behaviour or web-chatting site focusing on the
perceptions, marketing research through customer's own unique characteristics
the internet may be a more useful method and tastes, which assists customers who
than questionnaire interviews or an want to purchase items such as a
experimental method offline hairstyle, t-shirt, trousers etc), CD malls
(Grossnickle and Raskin, 2001). The and web travel agencies. This selection
authors are aware that current research gave variation in the dimensions of
has identified two key limitations, brand experience and relationship.
unique to e-mail, that must be considered Furthermore, these industrial categories
when planning an e-mail survey. First, are relevant for testing a customer-web
unsolicited surveys may be considered retailer relationship because they are
aggressive by respondents, and not in broadly accessed by many users (Van
keeping with the internet culture (Mehta Dolen and de Ruyter, 2002) and globally
and Sivadas, 1995; Sheehan and Hoy, compete on the web to keep loyal
1999). Minimising a perception of customers. Their broad popularity also
intrusiveness should help to address this meant most web consumers had
problem (Schillewaert ct al, 1998) and purchased from and enjoyed these
this approach was adopted in this websites. This facilitated the search for
survey. Secondly, the changing nature respondents with the appropriate
of the internet suggests it is possible that background for the survey.
e-mail addresses may become out- Within these categories, yes24.com,
of-date fairly quickly (Smith, 1997). daum.net, interpark.com and
Addressing this issue early on prepared hanaro.co.kr represent leading websites
the authors for dealing with delivery and formed the key websites
failures. This research method has the investigated. Other websites were also
advantage that it can offer statisfically included in the study. Details of the
significant data at low cost (Kim, 2001; sample of websites are given in Table 1.
Johnson, 2001; Ranchhod and Zhou, The choice of these websites was further
2001). Furthermore, all e-mail validated on the basis of a pre-test carried
communications have a date, time and out on 17 postgraduate students from a
address, allow^ing researchers to contact large north-west UK university who
the subjects and return partially were familiar with navigating the web.
completed questionnaires. It also The pre-test was used for the traditional
benefits from time efficiencies over assessment of validity and
postage, envelope stuffing and printing. comprehension and to determine if the
The survey was designed to include a directions for completing the survey
number of different websites in South were clear, as well as to assess response

444 Journai of Consumer Behaviourvol.4,6,438-452 Copynsln i 2()()5.1ohn Wiley & sons, Ltd. 1472-0817
Effects of consumer perceptions of brand experience on the web

Table 1 Details of the sample of websites

Bookstores Abata malls CDs Travel agencies


Yes24.corr} Daum.net Interpart.co.kr Hanaro.co.Jcr
Kyobobook.co.kr Freechell.com Yes24.com Lotte.co.kr
Morning365.com Hanmir.com Csclub.com Samsungmall.co.kr
Wowbook.com Partyparty.co.kr Lgeshop.com
Ypbooks.co.kr
Okbook24.com

and non-deliverable rates. The pre-test RESULTS


assisted in addressing one of the key The reliability analysis of these scales
limitations of e-mail: the number of yielded favourable results. The
undeliverable surveys. Acknowledging constructs exhibited a high degree of
the response rate limitation allowed for reliability in terms of coefficient alphas.
the estimation of an adequate sample size Most values exceeded the recommended
to achieve response goals. value of Cronbach's alpha of 0.7
Data were collected in a systematic (Nunnally and Bernstein, 1995). Table 2
multi-stage procedure. In the first stage, presents the results of the reliability
short solicitation messages were posted analysis.
on 35 popular and heavy-traffic Factor analysis was used to explain
newsgroups, inviting members to groups among ratio scales. Table 3 shows
participate in a 'web consumer the results of factor analysis using
behaviour survey'. A raffle of varimax rotation. Fornell and Larcker
department store vouchers was offered (1981) also stress the importance of
to encourage participation. In total, 461 examining composite reliability and
interested responses were received as a variance extracted. Bagozzi and Yi (1988)
result of this solicitation. Questionnaires suggest two criteria: composite reliability
were sent to these respondents, in which should be greater than or equal to 0.60,
each respondent was randomly given and variance extracted should be greater
four categories. In total, 203 completed than or equal to 0.50. For this study, all 11
surveys were received, resulting in a composite reliabilities were greater than
response rate of about 44 per cent. 0.88 and all 11 variances extracted were
The variables of the study were greater than 0.53 (see Table 3).
measured with multiple, five-point, The hypothesised structural model
Likert-type items (1 = strongly disagree was tested using AMOS 4.0 (Arbuckle,
to 5 — strongly agree, or 1 = very 1999). Table 4 shows an overview of the
dissatisfied to 5 = very satisfied), correlation between the main factors:
adapted to this context from published brand experience, familiarity,
scales (see the Appendix for specific satisfaction and brand trust. Table 4
items). Brand experience was measured shows a strong relationship between
with five items adapted from Ha (2003) brand experience and brand trust
and Shankar et al. (2000). The three (r — 0.93). In addition, all of the main
outcome facets of experience impacts factors were found for the positive
were measured as follows: familiarity, relationships.
with four items adapted from Baker et al.
(1986) and Hirschman (1986); Table 2 Results of the reliability analysis
satisfaction, with four items adapted Cronbach's
from Delgado-Ballester and Munuera- alpha
Aleman (2001) and Anderson and Brand experience (five items) 0.814
Srinivasan (2003); and brand trust, with Familiarity (four items) 0.704
four items adapted from Shankar et al. Satisfaction (four items) 0.823
Brand trust (four items) 0.845
(2000) and Morgan and Hunt (1994).

Journal of Consumer Behaviourvoi. 4, 6,438-452 copyright '• zoo's John Wiley & Sons. Ltd. 1472-0817 445
Honq-Youl Ha and Helen Perks

Table 3 Results of the factor analysis for the Table 5 A model fit for examining the
divisibility dimension hypotheses

Respondents (n = 203) Structural equation model

Measurement Mean Variance Chi-square(X^) 13.606


item (SD) explained Degrees of freedom (df) 6
X^/df 2.267
Exogenous constructs CFI # 0.993
Experience 0.994
Community 3.77 (0.70) 0.88 RFI/ 0.936
Event 3.49 (0.84) 0.70 TU/ 0.938
Visual factor 3.63(1.00) 0.83 RMSEA' 0.085
Cookies 3.64(0.64) 0.86
Appropriate price 3.69 (0.84) 0.82 Notes: /-CFI, NFI, RFI and TU close to 1 indicate a
Endogenous construct good fit.
Familiarity The lower the RMSEA value, the better the model
Goodwill 4.15(0.87) 0.87 is considered.
Awareness 4.38 (0.63) 0.81
Reputation 4.10(0.81) 0.72 and showed significant reaction to the
Favourable feeling 3.86 (1.03) 0.68 perceived pricing. The experiences also
Satisfaction
Performance 3.58 (0.85) 0.62 showed satisfaction with the brand and
Happiness 4.21 (0.70) 0,56 then strong intentions for future
Word of mouth 4.23(0.58) 0.65 purchasing. Furthermore, the study
Impression 3.64 (0.63) 0.53
Brand trust
showed that impressive brand
Preference 3.37 (0.89) 0.73 experiences significantly influence the
Privacy 3.66 (0,80) 0.82 brand trust of customers.
Reliability 2.85 (0.78) 0.58
Ongoing relationship 3.93 (0.64) 0.76 Brand familiarity affected satisfaction
significantly. That is, web experience,
Note: The complete text of measurement items
used in the measurement models is provided in
enough search and customer experience
the Appendix. all associated with the purchase directly
affected satisfaction. Thus, H2^ was
supported. H2b—positing that brand
Next, a path analysis was performed familiarity directly influences brand
relating to each of the dimensions trust—was rejected. As previously
affecting consumer perceptions of brand mentioned, it implies that increased
experience in the web environment. As brand familiarity is indirectly affected by
viewed in Table 5, the results obtained satisfaction as a mediator, rather than
for this model show a good fit. having a direct impact on brand trust.
Table 6 shows the measures for the A customer who positively
final model. Figure 2 shows the results of experiences the brand and keeps an
the structural model for the hypotheses ongoing relationship shows solid brand
of the study. trust for the brand. This means that
All hypotheses—Hi^^, H^ti and H^c— satisfied customers are not merely
were supported. The positive brand retained but they also turn from satisfied
experiences affected brand familiarity customers into brand trusting customers,
ultimately fostering other trusting
Table 4 Correlation coefficients among the customers. Accordingly, the following
factors affecting consumer perceptions of brand models represent the findings.
experience on the web (discriminant validity,
p<0.01)

EXP FAM SAT


BTU-bO + bl (EXP) (1)
FAM 0.684
SAT 0.638 0.436 BTU - bO + bl (EXP) + b2 (SAT) (2)
BTU 0.933 0.680 0.659
Notes: EXP = experience; FAM = familiarity; BTU - bO + bl (EXP)
SAT - satisfaction; BTU - brand trust. (3)
All significant <0.001. + b2(FAM) + (SAT)

446 Journal of Consumer Behaviourvoi. 4,6,438-452 Copyright r 2005John wuey &Sons, Ud. 1472-0817
Effects of consumer DerceDtions of brand exDerience on the web

Table 6 Final path models of consumer perceptions of brand experience on the web: Structural parameter
estimates (n = 203)

Final model
Path Hypothesis Coefficient t-value R^

E X P - FAM 0.68 3.04* 0.58


EXP - SAT Hib 0.63 2.92*
E X P - BTU H,c 0.93 5.93**
F A T - SAT H2. 0.62 3.13* 0.44
F A T ^ BTU H2b 0.70 1.34 (ns)
S A T - BTU H3 0.67 2.16* 0.46

Notes: The standardised parameters are shown as * and **; parameters are significant at a confidence level
of * p < 0.05 and * * p < 0.01.

Based on the above models, the familiarity towards the website. Internet
ultimate model is as follows. technology is providing a new kind of
interest to consumers, attracting new
BTU - bO + bl (EXP) + b2 (EXP * SAT) customers, offering a diversity of cookies
+ b3 (EXP* FAM* SAT) to existing customers and inducing a
positive customer experience of fhe
(4) websife.
For managers, this finding implies that
DISCUSSION AND MANAGERIAL website marketers should monitor
IMPLICATIONS customer interests, provide continuous
The objective of this study was to cookies and foster communities where
investigate whether there is a direct customers can share fheir experiences.
relationship between brand experience For example, customers of Abata malls
and brand trust or whether there is an expect continuous information on new
indirect relationship via satisfaction or fashions. They are very interested in the
brand familiarity. The findings show that type of information thaf enables fhem fo
a variety of brand experiences increase buy clothes or accessories tailored to
familiarity wifh the brand. The result is mafch their tastes. The virtual
closely related to the Forrester's Report experience, involving an individual
(1999) results, whereby it was found that interacting with a 3-D computer
90 per cent of all online shoppers simulation in e-commerce, is another
consider good customer experience to be example of an enhanced experience for
the critical factor when choosing a fhe customer (Li et al, 2001). Investment
favourable website from which to make in community-building infrastructure
purchases. Puf simply, improving a (such as chaf rooms, bulletin boards and
customer's experience leads to greater inferacfive evenfs) is also likely to

Figure 2: The final model of consumer perceptions of brand experience for the hypotheses
Wotes; The standardised parameters are shown as* a n d * * ; parameters are significant at a confidence level
of *p < 0.05 and **p < 0.01. Items in brackets are t-values.

Journal of Consumer Behaviourvol. 4,6,438-452 Copyright r 2005 John Wiley & Sons, Ltd. 1472-0817 447
Honq-Youl Ha and Helen Perks

support the range and diversity of brand Results show that only experience has a
experiences. direct influence on brand trust, however,
The findings also show that brand this may be partially mediated via
experience significantly affects customer familiarity. Thus, this study also shows
satisfaction. In particular, customers that the two constructs have different
showed a high level of satisfaction with consequences. The findings also show
the pricing offered, based on various that increasing customer brand
cookies; however, inexpensive pricing familiarity affects customer satisfaction.
does not satisfy all customers. A In other words, increasing the number of
customer who has experienced high positive experiences increases customer
involvement products or services, such brand familiarity and directly affects
as travel, might focus on the quality customer satisfaction. Particularly,
rather than the satisfaction of low increasing experiences associated with
pricing. This finding has implications for purchase and then increasing brand
managerial action. It suggests that familiarity affected all of the customers'
marketers must improve the quality of cognitive and emotional factors. This
customer experiences and invest much finding implies that brand familiarity
more to offer optimal cookies. Amazon's affects customers' perceived
'customer recommendation' content performance positively and improves
page, which provides customised customer impressions with regard to the
information based on a customer's purchase situation facing them.
previous 'click' experiences, offers a For managers, this finding suggests
leading example. If cookies do not match that they must understand the context
a customer's current tastes and interests and the marketing environment of their
exactly, the customer may ignore the customers. Even satisfied customers
recommendation and perceive the with a high level of brand familiarity may
experience to be poor. Managers should change their cognitive and emotional
be aware that this might damage the factors due to contextual or situational
customer relationship, ultimately changes. Managers should make efforts
resulting in customer defection and to monitor the customer environment as
decreased profitability. part of their on-going brand trust-
Brand experience significantly affects building strategy. This would help to
brand trust. Although many web brands predict and ultimately to avoid the
are making an effort to improve their dangers of customer defection to
brand trust, just a few possess the competitive brands.
advantages of having leading brands. Finally, customer satisfaction shows a
Consumers' brand experiences for such significant impact on brand trust. The
brands appear to have much more authors' viewpoint is that brand
weight. This result implies that managers satisfaction on its own cannot affect
should cultivate customers to build a brand trust. This study implies that
strong brand on the basis of positive brand trust is developed due to the
customer experiences. For example, a following: first, various brand
free demo version of a game might result experiences and the search for
in positive w^ord-of-mouth information, secondly, a high level of
communication to the player's friends or brand familiarity, and thirdly, customer
colleagues who might decide to purchase satisfaction based on cognitive and
the full-version game. emotional factors. All of these factors
As mentioned earlier, the two terms, greatly affect the solidity of the
brand experience and brand familiarity, relationship between a customer and a
are often used interchangeably, but this brand. A trusting custoiner is one with a
study distinguishes between the high level of brand preference and there
constructs of experience and familiarity. is ultimately a good possibility of

448 Journal of Consumer Behaviour vol. 4, s. 438-452 copyright. 2()0'> John Wiiey & sons, Ltd. 1472-0817
Effects of consumer perceptions of brand experience on the web

APPENDIX: SCALE ITEMS

Construct Measurement item

Exogenous constructs
Brand experience: I often like to participate in the community of the bookstore.
I participate in a special event offered on the site.
The variety of visual displays in the site is more interesting than other sites.
Cookies that are supplied in this site usually fascinate me.
Offering reasonable prices is very important on the web.
Endogenous constructs
Brand familiarity: The brand gives me a feeling of goodwill.
1 am always aware of the brand on the web.
The site has a good reputation.
Navigation at the site makes me feel comfortable.
Satisfaction: I am satisfied with my decision to purchase from the website.
1 enjoy visiting this site.
I recommend the services of the site to friends or colleagues.
Providing unexpected service sometimes impresses me deeply.
Brand trust: The preference for purchases at this site is consistently high.
The privacy of my information is secure on this site.
I trust the brand whenever I visit the site.
I will keep an ongoing relationship with the brand.

Note: All are five-point scales ranging from 1 ('strongly disagree') to 5 ('strongly agree').

converting a trusting customer into a n:\arkets. The results of this study can
loyal customer. help marketers better understand the
This finding implies that marketers brand trust process by drawing attention
should maintain an ongoing relationship to each building block.
with customers and develop and foster
advocates or loyal customers through LIMITATIONS AND FUTURE RESEARCH
segmented programmes and through While this research offers insights into
good feedback with their customers. For the consumer's perception process for
example, managers should provide generating brand trust on the web, it is
facilities where the customer can display not without limitations. Customer
satisfaction, thereby giving an important experience, familiarity, satisfaction and
indicator of how the overall e-service brand trust often undergo changes over
experience is going and providing the time and the temporal nature of
website brand owner with a clear view of consumer e-behaviour was not
how the customer is likely to assess the accounted for in this study. Indeed, few
website's performance. Furthermore, a researchers have investigated potential
customer's displayed satisfaction can changes in customer satisfaction and
serve as an important discriminating cue preference over time (Mittal et al, 2001;
enabling contact e-employees to enhance Severin et al, 2001; Sultan and Henrichs,
their own perfonnance. 2000). The authors suggest that future
Based on these results, it is suggested research could adopt a longitudinal
finally that, although e-satisfaction has perspective and examine the changing
an impact on e-loyalty (Anderson and nature over time of the brand dimension
Srinivasan, 2003), this relationship relationships identified in this study.
should be moderated by the levels of Further research also could make
consumers' individual factors, such as developments towards the construction
their cumulative experience, familiarity of a theoretical framework of cognitive/
and trust. Competitors are only a mouse emotional behaviour effects according to
click away in e-commerce settings, so it is various brand experiences.
critical that managers understand how to Although this research did not adopt a
build customer experience in online wide sampling of various kinds of web

Journal of Consumer Behaviourvoi. 4, 6,438-4S2 Copyright x 2005 John Wiley & sons, ud. 1472-0817 449
Hong-Youl Ha and Helen Perks

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