Effects of ICT Service Innovation and Complementary Strategies on Brand Equity and Customer Loyalty in a Consumer Technology Market

Author List: Xu, Xin; Thong, James Y. L.; Venkatesh, Viswanath;
Information Systems Research, 2014, Volume 25, Issue 4, Page 710-729.
This paper examines the effects of information and communication technology (ICT) service innovation and its complementary strategies on brand equity and customer loyalty toward ICT service providers. We draw from research on brand equity and customer loyalty, ICT innovation management, and strategy complementarity to propose a model that includes new constructs representing ICT service innovation, i.e., service leadership, and its two complementary strategies, i.e., customization-personalization control and technology leadership, and how their interactions influence customer loyalty through customer-based brand equity. We test our model using data from an online survey of 1,210 customers of mobile data services. The results show that service leadership and customization-personalization control have significant direct impacts on ICT service providers' brand equity. Moreover, when either the level of technology leadership or the level of customization-personalization control is high, the impact of service leadership on brand equity is enhanced. In turn, brand equity has significant impacts on consumers' affective loyalty and conative loyalty, but not on cognitive loyalty. Our study contributes to the literature on service management and service science, and in particular to the management of ICT service innovation in a consumer technology market.
Keywords: ICT service innovation;ICT service management;service leadership;technology leadership;customization;personalization;brand equity;customer loyalty;strategy complementarity;mobile data services
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#108 0.147 model research data results study using theoretical influence findings theory support implications test collected tested based empirical empirically context paper
#288 0.142 customer customers crm relationship study loyalty marketing management profitability service offer retention it-enabled web-based interactions operations sales strategy channels set
#211 0.127 service services delivery quality providers technology information customer business provider asp e-service role variability science propose logic companies especially customers
#112 0.107 services service network effects optimal online pricing strategies model provider provide externalities providing base providers fee complementary demand offer derive
#158 0.086 capital social ict communication rural icts cognitive society information well-being relational india societal empirically create develop disadvantaged technologies explore china
#92 0.067 equity conventional punishment justice wisdom focus behavior fairness compliance suggest theory significant certainty misuse reward settings behavioral mandatory drawing widely
#107 0.065 app brand mobile apps paid utility facebook use consumption users brands effects activities categories patterns controls extension store positive factor
#2 0.053 leadership leaders effective leader roles authority assume slow responsibility structure recognize responsibilities look size inevitable attain trend held articulate dominate