The empowerment-loyalty nexus: examining the dynamics of omnichannel customer experiences

Abstract

Omnichannel strategies have transformed customer engagement by integrating and personalising interactions across diverse touchpoints, yet their influence on brand loyalty remains underexplored. Empowered customers, equipped with greater control and information, may paradoxically exhibit weaker loyalty as they switch between brands.
This study addresses this paradox by examining how omnichannel experiences shape brand loyalty, particularly in the presence of personal traits such as personal innovativeness and product category involvement. The specific research objectives are to explore the relationship between omnichannel experiences and brand loyalty, understand the mediating role of customer empowerment, and examine how personal traits moderate these relationships. Using a mixed-methods approach guided by the Service-Dominant Logic (SDL) framework, which emphasises value co-creation between firms and customers through resource integration across multiple touchpoints, the study is conducted in two phases. Phase I employs qualitative methods to explore how key omnichannel characteristics—integration, flexibility, and personalisation—influence brand loyalty. Phase II further validates these quantitatively through structural equation modelling (SEM).
Key findings include the identification of integration, flexibility, and personalisation as critical drivers of empowerment, which mediates their effect on brand loyalty. Personal innovativeness and product category involvement were found to significantly moderate these dynamics. Specifically, high levels of personal innovativeness amplify the relationship between omnichannel characteristics and both empowerment and brand loyalty. Similarly, high product category involvement enhances the effect of omnichannel features on customer empowerment and loyalty.
This research contributes to the literature by advancing the understanding and application of the SDL framework by developing midrange theoretical frameworks and concepts aligned with its principles. It also offers a nuanced perspective on the interplay between omnichannel experiences, empowerment, personal traits and brand loyalty. Practically, the findings provide actionable insights for businesses to optimise omnichannel strategies, foster customer empowerment, and address diverse customer needs, thereby enhancing long-term brand loyalty.