Stock Ownership as a Motivation of Brand-Loyal and Brand-Supportive Behaviors

Journal of Consumer Marketing, Vol. 26, No. 6, pp. 427-436, 2009

31 Pages Posted: 8 Sep 2010

See all articles by Jaakko Aspara

Jaakko Aspara

Hanken School of Economics; Aalto University School of Business (formerly known as Helsinki School of Economics)

Date Written: 2009

Abstract

Purpose: Individuals’ consumption psychology and investment psychology have been traditionally viewed as rather separate realms. However, researchers have recently begun to imply that an individual’s stock ownership in a company may positively influence his/her brand loyalty towards the company. The purpose of this article is to explicate the psychological motivations underlying this influence as well as to provide empirical evidence of it.

Design/methodology/approach: A survey study of 293 individual stockowners of three companies is presented.

Findings: The analysis shows that for a large proportion of individuals, becoming a stockowner of a company leads to positive, increased motivation to exhibit brand loyalty towards the company, in terms of his/her personal purchases of the company’s products. Second, the analysis shows how stock ownership often leads to increased motivation to engage in other brand-supporting behaviors, such as positive word-of-mouth.

Research limitations/implications: The self-reported data used on individuals’ motivations somewhat restricts the results, which can be dealt with in further research.

Practical implications: The findings imply opportunities for managers to benefit from the tendency of individual stockowners to engage in repeat purchasing of the company’s products and word-of-mouth, so as to increase the sales of the company.

Originality/value: The article explicates the individual psychology motivations underlying the influence of a consumer’s stock ownership in a company on his/her brand loyalty towards the company – and provides empirical evidence of the motivations.

Keywords: Stock Ownership, Brand Loyalty, Customer Loyalty, Repeat Purchases, Word-of-Mouth, Individual Investor

Suggested Citation

Aspara, Jaakko, Stock Ownership as a Motivation of Brand-Loyal and Brand-Supportive Behaviors (2009). Journal of Consumer Marketing, Vol. 26, No. 6, pp. 427-436, 2009. Available at SSRN: https://ssrn.com/abstract=1673320

Jaakko Aspara (Contact Author)

Hanken School of Economics ( email )

P.O. Box 479
Helsinki, Helsinki 00101
Finland

Aalto University School of Business (formerly known as Helsinki School of Economics) ( email )

P.O. Box 21230
Helsinki, 00076
Finland

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