Accessing the influence of perceived brand authenticity and value co-creation on brand loyalty of China’s insurgent brands: The mediating role of psychological ownership

Abstract

This study is motivated by the need to thoroughly investigate the impact of perceived brand authenticity and value co-creation on brand loyalty within the context of China's insurgent brands. In particular, the study uses the psychological ownership theory to examine the mediating role of psychological ownership. The dynamic nature of the Chinese market underscores the significance of understanding how these factors influence consumer behavior and brand loyalty in this specific context. SmartPLS 3.0 software was used to conduct a thorough analysis of a substantial dataset consisting of 368 completed survey responses which were collected through a robust technique that included online survey questionnaires and purposive sampling. The findings demonstrate positive associations between perceived brand authenticity, value co-creation, psychological ownership and brand loyalty with psychological ownership serving as a mediating mechanism. This study underscores their role in propelling brand loyalty, thereby contributing to the growth and success of China’s insurgent brands emphasizing the importance of marketing strategies that prioritize authenticity, value co-creation and psychological ownership. Additionally, this research extends the application of psychological ownership theory to the distinctive landscape of China’s insurgent brands addressing a void in empirical research. The insights derived from this study provide valuable guidance for insurgent brands looking to foster brand loyalty in this specific context laying the groundwork for strategic marketing approaches in the dynamic Chinese market.