Examining a higher-order model of consumer evaluation of retailer corporate brands and impact on consumer loyalty intentions

We offer a consumer-based higher-order model of brand, value and relationship equities called perceived customer equity (PCE). The three equities, derived from the customer equity theory, represent the first-order dimensions of PCE. We argue that PCE represents a holistic (Gestaltist) evaluation of retail corporate brands. An online survey of over 800 Australian consumers provided data for empirical testing. The higher-order model is validated, revealing brand equity as the strongest dimension of PCE followed by value and relationship equities. We observe that PCE not only impacts but also explains greater variance in loyalty intentions as compared to the combined effects of the three equities. Through this framework we shift the focus from relatively atomistic to an integrative approach to managing retailer brands.