The influence of an authentic brand on the development of brand resonance: a South African banking services perspective

Abstract

Consumers search for brands that are relevant, original, and genuine: they increasingly search for the authenticity in brands (Arnould & Price, 2000; Beverland, 2005; Brown, Kozinets, & Sherry, 2003). As consumers searched for authenticity, environmental activists drew attention to the sustainability required from products and services that people consume. With deception and trickery becoming common in marketing, authenticity has become increasingly important (Eggers et al., 2013). Studies conducted on the authenticity of a brand within alternating social and cultural settings is of actual academic value as authenticity is a malleable construct which is constantly evolving. (Beverland, 2005; Eggers et al., 2013). Organisations now need to carefully plan what and how to produce, how to distribute their products and what promotional activities to follow (Kotler, 2011).

The purpose of this study was to understand the relationship between brand authenticity and brand resonance with the aim of strengthening brand equity. It also provides insight for the banking sector to understand if the sustainable development goals 2030 as agreed by all United Nations Member States in 2015 contributes to an authentic brand. Environmental knowledge is a crucial variable that has a significant positive influence on consumers’ intention to purchase sustainable products (Zelezny & Schultz, 2000; Polonsky, 1994).

The design of the study endeavours to understand the link between brand authenticity and brand resonance within the banking sector, while making use of environmental consciousness and subjective norms as other constructs. It is postulated that brand authenticity is made up of trust and sincerity. A qualitative approach is used to make determine the validity of seven proposed hypothesises. The data was collected via the use of self-completion digital questionnaires using 268 valid samples from the total 305 respondents. The results of the Structural Equation Modelling (SEM) showed that the three of the seven proposed hypotheses were rejected. However, the effect of brand authenticity on brand resonance was shown to be the most significant whereas the effect of subjective norms on brand resonance did not factor significantly and is one of the unsupported hypotheses. The results of this study offer some strategic references for the marketing practice. The findings point out that customers are becoming increasingly sustainable consciousness and have a positive impact on an authentic brand which could be used to gain brand resonance