The effects of innovations on consumer satisfaction and loyalty
Efekti inovacija na satisfakciju i lojalnost potrošača
Abstract
In today’s market conditions, innovations are essential for maintaining competitive advantage and ensuring long-term business sustainability. It enables brands to differentiate themselves and respond to complex consumer needs. However, its impact on consumer behavior, particularly on satisfaction and loyalty, remains insufficiently explored. This study aims to determine whether product, process, and marketing innovations influence consumer satisfaction and loyalty toward the brand, introducing the innovations. The sample consists of 148 respondents. The study applied descriptive statistical analysis, reliability analysis, correlation analysis, simple regression analysis, multiple regression analysis, and moderation regression analysis. The findings indicate that perceptions of product and marketing innovations are determinants of consumer satisfaction and loyalty. Furthermore, a mediating effect emerges in the relationship between perceived product and marketing innovations on one hand and brand satisfaction on the other. Companies should focus on improving functionality, design, and user experience, transparently introducing consumers to process innovations, and continuing with creative digital campaigns. Considering previous research, particularly in domestic literature, has focused on observing innovations as a whole, the contribution of this study lies in examining individual types of innovations and their impact on the aforementioned variables. Additionally, originality is reflected in testing interaction effects using moderation regression analysis.
Apstrakt
U savremenim tržišnim uslovima inovacije su ključne za očuvanje konkurentske prednosti i dugoročne održivosti preduzeća. One omogućavaju brendovima da se diferenciraju i odgovore na složene potrebe potrošača. Ipak, njihov uticaj na ponašanje potrošača, posebno na satisfakciju i lojalnost, ostaje nedovoljno istražen. Cilj rada je utvrditi da li percepcije potrošača o inovacijama proizvoda, procesa i marketinga, utiču na satisfakciju i lojalnost potrošača brendom koji inovacija uvodi. Uzorak broji 148 ispitanika. U radu su primenjene analiza pouzdanosti, korelaciona analiza, prosta regresiona analiza, višestruka regresiona analiza i moderacijska regresiona analiza. Dobijeni rezultati pokazuju da su percepcije o inovacijama proizvoda i marketinga determinante sa-tisfakcije i lojalnosti potrošača, te da se, u odnosu inovacija proizvoda i marketinga sa jedne strane i satisfakcije brendom sa druge, javlja moderacijski efekat. Kompanija bi trebala da se fokusira na dalje unapređenje funkcionalnosti, dizajna i korisničkog iskustva, transparentno uvede potrošače u inovacije procesa i nastavi sa kreativnim digitalnim kampanjama. Imajući u vidu da su prethodna istraživanja, posebno u domaćoj literaturi, fokusirana na objedinjeno posmatranje inovacija, doprinos istraživanja je posmatranje pojedinačnih tipova inovacija i njihovog uticaja na pomenute varijable. Takođe, originalnost se ogleda u testiranju interacijskih efekata upotrebom moderacijske regresione analize.
References
- Brexendorf, T. O., Bayus, B., & Keller, K. L. (2015). Understanding the interplay between brand and innovation management: findings and future research directions. Journal of the Academy of Marketing Science, 43(5), 548-557. https://doi.org/10.1007/s11747-015-0445-6
- Bui, H., Trinh, T. A., Nguyen, T., & Nguyen, P. K. M.(2020). The effects of firm’s innovation on customer loyalty: A case study of Saigon COOP. Ho Chi Minh City Open University Journal of Science – Economics and Business Administration, 10(1), 82-100. https://doi.org/10.46223/HCMCOUJS.econ.en.10.1.222.2020
- Caniago, A. (2020). Analysis of product innovation and brand image on company performance. *International Journal of Business Innovation and Research*, 21(3), 409-427. https://doi.org/10.1504/IJBIR.2020.105927
- Carrizo Moreira, A., Freitas, P. M., & Ferreira, V. M.(2017). The effects of brand experiences on quality, satisfaction, and loyalty: An empirical study in the telecommunications multiple-play service market. Innovar, 27(64), 23–36. https://doi.org/10.15446/innovar.v27n64.62366
- Chen, H. B., Yeh, S. S., & Huan, T. C. (2014). Nostalgic emotion, experiential value, brand image, and consumption intentions of customers of nostalgic themed restaurants. Journal of Business Research, 67(3), 354-360. https://doi.org/10.1016/j. jbusres.2013.01.003
- Chiesa, V., & Frattini, F. (2011). Commercialising Technological Innovation: Learning from Failures in High-Tech Markets. Journal of Product Innovation Management, 28(4), 437-454. https://doi.org/10.1111/j.1540-5885.2011.00818.x
- Diaw, B., & Asare, D. (2018). Effect of innovation on customer satisfaction and customer retention in the telecommunication industry in Ghana. European Journal of Research and Reflection in Management Sciences, 6(4), 15-26.
- Drucker, P. F. (1954). The practice of management. New York: Harper & Row.
- Erdoğan, Y., & Esen, S. K. (2015). The Mediating Role of Brand Trust in the Relationship Between Brand Image and Brand Loyalty. Uludağ Journal of Economy and Society, 34(1), 135-150.
- Gupta, S., Malhotra, N. K., Czinkota, M., & Foroudi, P. (2016). Marketing innovation: a consequence of competitiveness. Journal of Business Research, 69(12), 5671–5681. https://doi.org/10.1016/j.jbusres.2016.02.042
- Hanaysha, J., Hilman, H., & Abdul-Ghani, N. H. (2014). Direct and Indirect Effects of Product Innovation and Product Quality on Brand Image: Empirical Evidence from Automotive Industry. *International Journal of Scientific and Research Publications*, 4(11), 1-7.
- Huseynli, B., & Mammadova, S. (2022). Determining the Moderator Role of Brand Image on Brand Innovativeness, Consumer Hope, Customer Satisfaction and Repurchase Intentions. *International Journal of Economics and Business Administration*, 10(2), 59-77. https://doi.org/10.35808/ijeba/766
- Ilić, D., Ostojic, S., & Damnjanovic, N. (2014). The importance of marketing innovation in new economy. Singidunum Journal of Applied Sciences, 11(1), 34-42. https://doi.org/10.5937/sjas11-5015
- Islam, T., Islam, R., Pitafi, A. H., Xiaobei, L., Rehmani, M., Irfan, M., & Mubarak, M. S. (2021). The Impact of Corporate Social Responsibility on Customer Loyalty: The Mediating Role of Corporate Reputation, Customer Satisfaction, and Trust. Sustainable Production and Consumption, 25, 123–135. https://doi.org/10.1016/j.spc.2020.07.019
- Josimović, M., Ćoćkalo, D., & Radivojević, N. (2024). The role of guest loyalty between satisfaction with service recovery and guest behaviour in mountain hotels. Hotel and Tourism Management, 12(2), 9-24. https://doi.org/10.5937/menhottur2400012J
- Kahn, K.B. (2018). Understanding innovation. Business Horizons, 61(3), 453–460. https://doi.org/10.1016/j.bushor.2018.01.011
- Khan, N., Salam, S., & Sherpao, A. (2014). Impact of Innovation on Customer Satisfaction and Brand Loyalty: A Case Study of Professionals. *International Journal of Management Sciences*, *3*(9), 663-672.
- Klingenberg, B., Timberlake, R., Geurts, T.G., & Brown, R. (2013). The relationship of operational innovation and financial performance – A critical perspective. International Journal of Production Economics, 142(2), 317-23. https://doi.org/10.1016/j. ijpe.2012.12.001
- Kotler, P., & Keller, K. L. (2006). Marketing management (12th ed.). Lebanon, Indiana, USA: Prentice Hall.
- Krstić, B., and Rađenović, T. (2018). *Strategic and Operational Management of Intellectual Capital within Enterprises*. Niš: Faculty of Economics.
- Lahap, J., Ramli, N. S., Said, N. M., Radzi, S. M., & Zain, R. A. (2016). A Study of Brand Image Towards Customer’s Satisfaction in the Malaysian Hotel Industry. Procedia-Social and Behavioral Sciences, 224, 149–157. https://doi.org/10.1016/j.sbspro.2016.05.430
- Lee, C. J., Tseng, C. C., & Chang, W. C. (2019). Effects of experiential marketing, brand image and professional knowledge on customer satisfaction of fitness club. Management Information Computing, 8(1), 34-44. https://doi.org/10.6285/mic.201903_8(1).0004
- Lee, V.-H., Leong, L.-Y., Hew, T.-S., & Ooi, K.-B. (2013). Knowledge management: a key determinant in advancing technological innovation. Journal of Knowledge Management, 17(6), 848-872. https://doi.org/10.1108/JKM-08-2013-0315
- Lee, Y., & O’Connor, G. C. (2003). The Impact of Communication Strategy on Launching New Products: The Moderating Role of Product Innovativeness. Journal of Product Innovation Management, 20(1), 4-21. https://doi.org/10.1111/1540-5885.t01-1-201002
- Lin, J., Lobo, A., & Leckie, C. (2019). The influence of green brand innovativeness and value perception on brand loyalty: the moderating role of green knowledge. Journal of Strategic Marketing, 27(1), 81–95. https://doi.org/10.1080/0965254X.2017.1384044Vrhobrasca
- Lowe, B., & Alpert, F. (2015). Forecasting consumer perception of innovativeness. Technovation, 45-46, 1–14. https://doi.org/10.1016/j.technovation.2015.02.001
- Maier, D. (2018). Product and Process Innovation: a new perspective on organisational development. International Journal of Advanced Engineering and Management Research, 3(6), 132-138.
- Maine, E., Lubik, S., & Garnsey, E. (2012). Process-based vs. product-based innovation: Value creation by nanotech ventures. Technovation, 32(3-4), 179-192. https://doi.org/10.1016/j.technovation.2011.10.003
- Marković, I., Borisavljević, K., and Rabasović, B. (2024). The influence of destination image on the behaviour of domestic tourists. Marketing, 55(2), 125-134. https://doi.org/10.5937/mkng2402125M
- Martín-Consuegra, D., Molina, A., & Esteban, A. (2007). An integrated model of price, satisfaction and loyalty: an empirical analysis in the service sector. Journal of Product & Brand Management, 16(7), 459–468. https://doi.org/10.1108/10610420710834913
- Moliner-Velázquez, B., Fuentes-Blasco, M., Servera-Francés, D., & Gil-Saura, I. (2017). Effects of retail innovation and image on „value-satisfaction-loyalty” chain. In P. Rossi (Ed.), Marketing at the confluence between entertainment and analytics. Developments in Marketing Science: Proceedings of the Academy of Marketing Science (pp. 285–299). Cham: Springer. https://doi.org/10.1007/978-3-319-47331-4_52
- Na, Y.K., Kang, S., & Jeong, H.Y. (2019). The Effect of Market Orientation on Performance of Sharing Economy Business: Focusing on Marketing Innovation and Sustainable Competitive Advantage. Sustainability, 11(3), 729. https://doi.org/10.3390/su11030729
- Nam, J., Ekinci, Y., & Whyatt, G. (2011). Brand equity, brand loyalty and consumer satisfaction. Annals of Tourism Research, 38(3), 1009-1030. https://doi.org/10.1016/j.annals.2011.01.015
- Naz, S., Asrar-ul-Haq, M., Iqbal, A., & Ahmed, M. (2023). Relationship between brand innovativeness and customer satisfaction: a moderated mediation model from Generation M perspective. Journal of Islamic Marketing, 14(11), 2928-2948. https://doi.org/10.1108/JIMA-01-2022-0029 IslamicMarketing, 14(11), 2928-2948. https://doi.org/10.1108/JIMA-01-2022-0029
- Neupane, R. (2015). The Effects of Brand Image on Customer Satisfaction and Loyalty Intention In Retail Super Market Chain UK. International Journal of Social Sciences and Management, 2(1), 9-26. https://doi.org/10.3126/ijssm.v2i1.11814
- Nguyen, H.M., Ho, T.K.T., & Ngo, T.T. (2024). The impact of service innovation on customer satisfaction and customer loyalty: a case in Vietnamese retail banks. Future Business Journal, 10(1). https://doi.org/10.1186/s43093-024-00354-0
- Nørskov, S., Chrysochou, P., & Milenkova, M. (2015). The impact of product innovation attributes on brand equity. Journal of Consumer Marketing, 32(4), 245–254. https://doi.org/10.1108/JCM-10-2014-1198
- Nunnally, J. C. (1978). Introduction to psychological measurement. New York: McGraw-Hill.
- Nwachukwu, C., & Vu, H. M. (2022). Service Innovation, Marketing Innovation and Customer Satisfaction: Moderating Role of Competitive Intensity. Sage Open, 12(2). https://doi.org/10.1177/21582440221082146
- Oliver, R. L. (2015). Satisfaction: A Behavioral Perspective on the Consumer. New York: Routledge.
- OECD/Eurostat. (2005). *Oslo manual: Guidelines for collecting and interpreting innovation data* (3rd ed.). Paris: OECD Publishing. https://doi.org/10.1787/9789264013100-en
- OECD/Eurostat. (2018). Oslo Manual 2018: Guidelines for collecting, reporting and using data on innovation (4th ed.). Paris: OECD Publishing. https://doi.org/10.1787/9789264304604-en
- Panigrahi, S., Azizan, N., & Al Shamsi, I. (2021). Product Innovation, Customer Satisfaction, and Brand Loyalty of Using Smartphones Among University Students : PLS – SEM Approach. Indian Journal Of Marketing, 51(1), 8-25. https://doi.org/10.17010/ijom/2021/v51/i1/156931
- Safeer, A. A., He, Y., & Abrar, M. (2021). The influence of brand experience on brand authenticity and brand love: an empirical study from Asian consumers’ perspective. Asia Pacific Journal of Marketing and Logistics, 33(5), 1123–1138. https://doi.org/10.1108/APJML-02-2020-0123
- Setiobudi, A. (2021). The Effect of Product Innovation on Interest with Satisfaction as Mediation. Review of Management and Entrepreneurship, 5(1), 45-58. https://doi.org/10.37715/rme.v5i1.1640
- Sulton, M., Hidayatul L, E., Surya A, M., & Sawabi, S. (2022). The Effect of Marketing, Product, Process, and Organisational Innovations on Marketing Performance. KnE Social Sciences, 7(10), 386-399. https://doi.org/10.18502/kss.v7i10.11241
- Szekely, F., & Strebel, H. (2013). Incremental, radical and game-changing: strategic innovation for sustainability. Corporate Governance, 13(5), 467-481. https://doi.org/10.1108/CG-06-2013-0084
- Tannady, H., Sjahruddin, H., Saleh, I., Renwarin, J., & Nuryana, A. (2022). Role of product innovation and brand image toward customer interest and its implication on electronic products purchase decision. Widyakal: Journal of Pembangunan Jaya University, 9(2), 93–98. https://doi.org/10.36262/widyakala.v9i2.620
- Tunç, T. (2022). The Mediating Role of Brand Image and Customer Satisfaction in The Impact of Marketing Innovation on Customer Loyalty (A Case Research in The Chemical Industry). Academic Review of Humanities and Social Sciences, 5(2), 130-155. https://doi.org/10.54186/arhuss.1093211
- Upamannyu, N., & Bhakar, S. (2014). Effect of Customer Satisfaction on Brand Image & Loyalty Intention: A Study of Cosmetic Product International. International Journal of Research in Business and Technology, 4(1), 296-307.
- Vuong, Q. H., Ghadiri, S. M., & Nguyen, T. T. (2022). Exploring types of innovation, customer perceived value, and customer satisfaction: A literature review and hypotheses development. Journal of Positive School Psychology, 6(2), 4963-4971.
- Winarti, Y., Sarkum, S., & Halim, A. (2021). Product Innovation on Customer Satisfaction and Brand Loyalty of Smartphone Users. Journal of Applied Business Administration, 5(2), 179-187. https://doi.org/10.30871/jaba.v5i2.3166
- Xiang, Z., Schwartz, Z., Gerdes, J. H., & Uysal, M. (2015). What can big data and text analytics tell us about hotel guest experience and satisfaction? International Journal of Hospitality Management, 44, 120-130. https://doi.org/10.1016/j.ijhm.2014.10.013
- Yi, L., Khan, M., & Safeer, A. (2022). Firm innovation activities and consumer brand loyalty: A path to business sustainability in Asia. Frontiers in Psychology, 13, 942048. https://doi.org/10.3389/fpsyg.2022.942048
- Zameer, H., Wang, Y., & Yasmeen, H. (2019). Transformation of firm innovation activities into brand effect. Marketing Intelligence & Planning, 37(2), 226–240. https://doi.org/10.1108/MIP-05-2018-0176
- Zhao, Y., Xu, X., & Wang, M. (2019). Predicting overall customer satisfaction: Big data evidence from hotel online textual reviews. International Journal of Hospitality Management, 76(Part A), 111–121. https://doi.org/10.1016/j.ijhm.2018.03.017
- Zlatanović, D. (2020). Innovation Management: Conceptual-Methodological Framework. Kragujevac: Faculty of Economics.
