1 The Relationships among Marketing Forces, Corporate Brand Equity, Trust, and Customer Loyalty: An Empirical Study of Taiwan Lumber Import Market Tse-Wen Hsieh, Tsui-Ying Huang, and Jun-Yen Lee Presented by Jun-Yen Lee, Ph.D. Professor, Department of Bio-industry & Agribusiness Administration National Chai-Yi University, Taiwan

2 INTRODUCTION The importance of customer loyalty Can the marketing forces lead to customer loyalty? What are the mediators in this relationship? Background Objectives To understand the relationships of marketing forces, corporate brand equity, trust, and customer loyalty To explore the mediating effects of corporate brand equity and trust

3 1.Marketing forces Kotler (1999) ； McCarthy (1960) ； Booms and Bitner(1981) 2.Corporate brand equity Mudambi (1997) ； Allard et al. (2005) 3. Trust Sako (1992) ； Anderson and Narus (1990) ； Moorman et al. (1993) ； Morgan and Hunt (1994) 4.Customer loyalty Oliver (1997) ； Rubinson (1996) ； Simeon Chow (1997) ； Chaudhuri and Holbrook (2001) ； Taylor(2004) LITERATURE REVIEW

4 Customer loyalty Trust Brand equity Marketing forces H1 H2 Aaker(1991) H6 Taylor(2004) H3 Allard(2005) H4 H5 MODEL Conceptual model

5 Trust Brand equity Marketing forces H9 Customer loyalty H7 H8 MODEL Rival model

6 Samples ： 259 companies Survey method: questionnaire sent by mail and Data analysis method: Structure Equation Modeling (SEM) Mail Total Sent Responses Follow-up returns 25 Response rate (%) 38.2 ％ Valid questionnaire 89 METHOD

7 CharacteristicsItems Frequencies Job position 1. CEO 2. Purchase manager 3. others_____ Sales/yr 1. less than $5 million (or U.S. $ 170 thousands) 2 $5million~$10 million 3. More than $20 million Operating term 1. less than 10 years 2. 11~15 years ~20 year 4. More than 21 years Work experience 1. Less than 5 years years years years Respondent status EMPERICAL RESULTS Descriptive statistics

8 Reliability and validity analysis 1. Reliability ： ConstructsCronbach’s α Marketing forces (4 Items)0.903 Corporate brand equity (4 Items)0.890 Trust (3 Items)0.749 Customer loyalty (5 Items)0.892 EMPERICAL RESULTS

9 2. Validity ： –Content validity –Construct validity ： Validating by the Confirmatory factor analysis( CFA ) EMPERICAL RESULTS

10 1. Brand equity : 2. Marketing forces ： Construct validity analysis CMIN/DF=0.043, GFI=1.000, CFI=1.000, RMSEA=0.000 ˇ ˇ ˇˇ CMIN/DF=0.877, GFI=0.941, CFI=1.000, RMSEA=0.000 ˇ ˇ ˇˇ EMPERICAL RESULTS

11 3. Trust: 4. Customer loyalty CMIN/DF=0.157, GFI=0.999, CFI=1.000, RMSEA=0.000 ˇ ˇ ˇˇ MIN/DF=0.742, GFI=0.987, CFI=1.000, RMSEA=0.000 ˇ ˇ ˇˇ EMPERICAL RESULTS

12 5. Construct validity analysis for whole constructs MIN/DF=1.470, GFI=0.840, CFI=0.944, RMSEA=0.073 ˇ ˇ ˇˇ EMPERICAL RESULTS

13 Goodness of fit and Hypotheses tests 1.Conceptual model MIN/DF=1.470, GFI=0.840, CFI=0.944, RMSEA=0.073 EMPERICAL RESULTS

14 2. Adjusted model-Model Ⅰ MIN/DF=1.460, GFI=0.840, CFI=0.944, RMSEA=0.073 EMPERICAL RESULTS

15 3. Adjusted model- Model Ⅱ MIN/DF=1.521, GFI=0.835, CFI=0.937, RMSEA=0.077 EMPERICAL RESULTS

16 4. Adjusted model- Model Ⅲ MIN/DF=1.515, GFI=0.834, CFI=0.937, RMSEA=0.076 ˇ ˇ ˇˇ EMPERICAL RESULTS

17 5. Rival model MIN/DF=1.929, GFI=0.796, CFI=0.886, RMSEA=0.103 ↓ ㄨ ↓↓ EMPERICAL RESULTS

18 Research hypotheses Hypotheses Path Standardized estimates Descriptions Conceptua l model Model Ⅲ H4: Marketing forces are positively related to trust. mf  trust ＊＊ ＊＊＊ H3: Marketing forces are positively related to brand equity. mf  be ＊＊＊ ＊＊＊ H6: Trust is positively related to customer loyalty. trust  cl ＊＊ H2: Brand equity is positively related to customer loyalty. be  cl ＊＊＊ ＊＊＊ H1: Brand equity is positively related to trust. be  trust H5: Marketing forces are positively related to customer loyalty. mf  cl 0.353** EMPERICAL RESULTS

19 Conclusions -Hypothesis tests show that marketing forces are positively related to corporate brand equity and trust. -Also, trust and corporate brand equity are positively related to customer loyalty, respectively. -Corporate brand equity and trust are the mediating factors between marketing forces and customer loyalty. -Corporate brand equity has higher effect on customer loyalty than trust has. -To increase wood raw material buyers’ loyalty, the suppliers should build brand equity and customer trust. CONCLUSIONS

20 Thank you!