The Influence of Content Marketing and CRM toward

Brand Image and Brand Loyalty

Barkah Barkah

, Wenny Pebrianti

and Runi Virzia Mutari

Faculty of Economic and Business, Universitas Tanjungpura, Indonesia

PT. Astra International Tbk, Kanwil Kalimantan Barat, Indonesia

runivirzia@gmail.com

Abstract. Content marketing appears to be one of many social media marketing

strategies to engage customers. On the other hand, with a lot of options customers

are able to pick, it is quite a challenge for a brand to keep their customers to be

loyal. Hence, Customer Relationship Management (CRM) becomes one of the

powerful tools to maintain a beneficial and long lasting relationship with

customers. The sample of this study consists of 100 respondents . The data were

processed using SPSS 17 and analyzed with path analysis method. It is found that

content marketing doesn’t have a significant influence towards brand loyalty, but

it does significantly influence the brand image. CRM has a significant influence

towards both brand image and brand loyalty, and on the other hand brand image

does have a significant influence on brand loyalty.

Keywords: Brand Image ꞏ Brand Loyalty ꞏ Content Marketing ꞏ CRM

1 Introduction

The existence of internet is also generating the development of e-commerce industry.

In Indonesia, based on the Economic Census 2016 conducted by Central Bureau od

Statistic, within the year of 2006 to 2016 there are 26,2 million e-commerce operated

in the country. As customers become indecisive in terms of choosing which brand they

want to buy products from due to technological advances they have nowadays, brand

loyalty is what a company that runs its business in such competitive market sought to

achieve. However, brand loyalty has a different definition of consumer loyalty, making

these two variables cannot be mixed together. According to Saeed (2013), brand loyalty

is a dedication of the customer to the brand to purchase it over and over again despite

the influence of different marketing efforts of the competitors or other brands that may

cause switching behavior.

There are a lot of ways for a company to build its brand image in order to gain

brand loyalty. Advertisement and sales promotion might be the top two of it. As we

know, social media usage is very common in today’s world as a part of technological

development invented from time to time. According to Telegraph’s article in 2015, the

average person has at least five social media accounts and spends at least 1 hour and 40

minutes browsing them every day. Indonesia is a country with the total population is

around 255 million, and the active internet users takes up to 72.7 million people. Based

on this fact, social media is definitely holding a role as the best tools for marketers to

Barkah, B., Pebrianti, W. and Mutari, R.

The Inﬂuence of Content Marketing and CRM toward Brand Image and Brand Loyalty.

DOI: 10.5220/0010528300002900

In Proceedings of the 20th Malaysia Indonesia International Conference on Economics, Management and Accounting (MIICEMA 2019), pages 711-724

ISBN: 978-989-758-582-1; ISSN: 2655-9064

711

do the sales promotion. Content marketing heavily involves social media (Murdock,

2014).

Content marketing is the process of developing and sharing relevant, valuable, and

engaging content to target audience with the goal of acquiring new customers or

increasing business from existing customers (Maksymiw, 2014). Creating an attractive

content can bond relationship between brand and customer (Bunpis & Haron, 2013)

because content marketing can drive awareness and lead engagement with opportunity

to compensate traditional strategy (Bowden, 2009). In this information-driven era,

customers request for factual and useful information to aid them in decision making

process, because customers today know they have rights to choose what information to

receive, in what kind of format that information is in and whether to believe the content

(Hipwell & Reeves, 2013).

Delivering valuable content might help a company to attract new customers, but

keeping the old ones is just as important in order to gain the brand loyalty. Customer

relationship management (CRM) is a comprehensive approach for creating,

maintaining and expanding customer relationships (Anderson & Kerr, 2002). Content

marketing implications might lure customers to be more engaged with a brand, but

CRM is the tool to keeping them and growing a depth relationship with the brand itself.

CRM can be the single strongest weapon a manager has to ensure the customers become

and remain loyal (Anderson & Kerr, 2002).

Content marketing is not really new in the marketing world itself, however, the

digital era has turned it upside down. If in the 80s content marketing was spread from

magazine to magazine, now the platform is becoming more viral and able to reach just

anyone as the company wish. CRM is also not a new thing because it is widely known

how important it is to build a strong bond with customers. However, the combination

of both might resulting to an ultimate brand loyalty from customers, as the brand image

will also probably get an impact.

In this study, researcher takes Zalora Indonesia to scrutinize whether the content

marketing and CRM will have a significant impact in building a brand loyalty. Zalora

Indonesia, a part of Zalora Group, is an online fashion store that established in 2012. In

fact, Zalora Indonesia is becoming one of the most popular fashion online store in the

country with more than 70,000 newsletter subscribers. Offering free shipping cost

across the country, Zalora Indonesia is apparently successful in winning Indonesia’s

fashion lovers.

As it is previously mentioned, the purpose of content marketing is to engage more

customers with a different kind of promotion than the traditional advertising. When

customers get engaged, they will be loyal in the brand even if there are a lot of similar

brands trying to offer a good proposal (Bunpis, 2013). The combination of content

marketing and a well-managed customer relationship might will not only engaged more

customers, but keeping them loyal with the brand.

2 Literature Review

It is crucial for the companies to have good content marketing to attract more customers

to visit their page, follow the update news and finally repeat the purchase (Ahmad,

Musa & Harun, 2015). Content marketing allows a firm to create rich, attractive,

personalized message for its targeted audience, in order to form desired image in their

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minds (O’Reilly, 2014). It is also will help a firm to build the brand image because

content marketing efforts focus on what people perceived as being wrong with the brand

and polish the messages the company sends to its leads, shareholders, customers, and

followers (Millard, 2016).

2.1 Content Marketing

As content marketing means delivering valuable content, providing valuable

information to customer will create brand loyalty and purchases in the future (Hakala,

Svensson & Vince, 2012). However, the relationship can be seen explicitly through

the impact of content marketing on customer brand engagement. A study conducted in

2013 by Bunpis and Haron analyzed how content marketing can affect customer brand

engagement and ultimately leads to some sort of loyalty. The valuable content can make

trust and consumer confidence, and influence the perception and purchase intent of

consumers (Bunpis & Haron, 2013). Bowden (2009) urges that customer brand

engagement is psychological basic to push consumers become increasingly loyal to a

brand, which added by Bunpis and Haron (2013) that the brand engagement through

content marketing will add a level of commitment and trust which lead to repeated

purchasing behavior and brand loyalty.

2.2 Customer Rekationship Management

A study conducted by Brahmasari and Panjaitan (2016) on how CRM can influence

brand image of Indonesian National Army Level II Hospitals, shows that CRM has a

significant influence on brand image. This finding is supported by a study conducted

by Lingavel (2015), as it found a great influence from CRM towards brand equity.

Brand equity has five underlying dimensions, including brand performance, brand

value, trustworthiness, commitment, and brand image (Lingavel, 2015). CRM help in

monitoring a real-time customer insight, allows businesses to manage the language of

marketplace and ensure their values align with the targeted customers and ultimately

makes customers feel involved (CRM Compass, 2015). Therefore, CRM is able to

create exceptionally positive customer experience that also able to form an image in

customer’s mind. The relationship between CRM and brand image also can be

explained by a statement proposed by Nyadzayo & Khajehzadeh (2016) that said a

positive brand image is expected to strengthen the effects of service quality, satisfaction

and value on customer loyalty via CRM quality.

Wali, Wright and Uduma (2015) revealed that CRM has strong impacts on brand

loyalty. If a firm established a close relationship with its customers, it would enable

them to understand when customers taste and want has taken a new direction in order

to meet their expectations, resulting a positive brand loyalty behavior. Implementations

of CRM practices can impact on customers’ ability to get committed with the brand.

One of the objectives of CRM process is to build customers profitability and loyalty via

a bonded relationship between the business and its customers (Reinartz & Kumar,

2006). Eventually, customers will return and repeatedly purchase the products, spend

more time with the brand, and become more loyal towards the brand (Balaji, 2015).

The Inﬂuence of Content Marketing and CRM toward Brand Image and Brand Loyalty

713

2.3 Brand Image

Brand Images is believed to have an immense influence on consumer satisfaction and

brand loyalty (Saeed et al., 2013). A study by Stocchi, Driesener & Nenycz-Thiel

(2015) urges that the existence of a positive relationship between brand image and

brand usage is one of the earliest empirical patterns documented, and has commonly

been used to justify a positive impact of brand image on brand loyalty. Brand image, as

it is automatically formed in consumers’ mind, is actually the objective and mental

feedback of the consumers when they purchase a product (Natarajan & Sudha, 2016),

therefore a positive brand image will be able to enhance the brand value of organization.

2.4 Brand Loyalty

American Marketing Association described brand loyalty as the situation in which

consumer generally buys the same manufacturer-originated product or service

repeatedly over time rather than buying from multiple suppliers within the category. It

reflects a customer’s commitment to remain in a relationship for a long period of time

with a brand (So, Andrew & Yap, 2013). Brand loyalty leads to certain marketing

advantages such as reduced marketing costs, more new customers and greater trade

leverage (Algesheimer et al., 2005). Thus, because of this reason, it is something very

essential for every firm to have their brands with loyalty from customers

The role of brand image itself is to give consumers overall values of products and

lure them to have the intention of purchase again and againthis theory clarifies the

relationship between brand image and brand loyalty, because according to Natarajan &

Sudha (2016) brand loyalty comes as a stepping stone that makes consumers to express

their belief and trust over a specific brand to be bought again and again. Therefore the

hypothesis can be proposed as follows:

H1 : Content marketing has a positive impact on brand image.

H2: Content marketing has a positive impact on brand loyalty.

H3: Customer Relationship Management has a positive impact on brand image.

H4: Customer relationship management has a positive impact on brand loyalty.

H5: Brand image has a positive impact on brand loyalty.

3 Methodology

3.1 Research Design

The aim of this study is to analyze the influential variables of brand loyalty using a

causal research design. Causal research, also known as explanatory research, is type of

research that investigates the cause-and-effect relationships (Brains et al., 2011).

Dependent, Independent and the mediator variable in this research are Brand Loyalty

(Y2). Content Marketing (X1) and Customer Relationship Management (CRM) (X2)

Brand Image (Y1). Likert scale used in this research.

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3.2 Data Collected

This research used questionnaire to collect the primary data, distributed directly to the

selected respondents, and in online form to be distributed through some social media

messenger platform such as LINE, WhatsApp, Facebook, and Twitter.

3.3 Population and Sample

Population is the citizen of Pontianak that have purchased products from Zalora

Indonesia repeatedly, sample is a finite part of a statistical population whose properties

are studied to gain information about the whole (Webster, 1985). In this research, the

sampling method that used is non-probability sampling, characteristic is that samples

are selected based on the subjective judgement of the researcher. The sampling

technique used is purposive sampling, In order to determine the minimal sample size

from the unknown number, it can be found by using the following formula (Lemeshow

et al., 1990):

𝑛

𝑍











𝑃1  𝑃

𝑑



Whereby:

n : number of sample

Z : number of standard error, which is 95% = 1,96 with P = 0.5

d : confidence interval (precision), which is 10%

3.4 Validity and Reliability Test

The data collected for this research analyzed with SPSS (Statistical Package for the

Social Science) Software. Validity tries to asses whether a measure of a concept really

measures that concept, that is, the extent to which the concept measurer the thing it was

designed to measure (Singh, 2007). Reliability test shows stability of instruments in

describing the symptoms. In this research, the reliability test will be conducted with

SPSS Software and equipped with Cronbach Alpha ().Cronbach Alpha () is a

statistic that generally used as a measure of internal consistency or reliability of a

psychometric instrument like Likert data (Sumedi, 2016). A constructed item will be

considered reliable if it has Cronbach Alpha () higher than (>) 0.60.

3.5 Classical Assumption Test

Classical assumption test is the assumption that must be met in the linear analysis based

on ordinary least squares (OLS). The classical assumption test used are normality,

multicollinearity, heteroscedasticity, and linearity.

3.6 Path Analysis

The method used in analyzing the data collected is path analysis. In this research

particularly, the path model is set to hypothesized causal relation among variables,

The Inﬂuence of Content Marketing and CRM toward Brand Image and Brand Loyalty

715

which how Content Marketing (X1) and Customer Relationship Management (X2)

influence Brand Loyalty (Y2) through Brand Image (Y1) as mediator.

Fig. 1. Path Analysis Model.

Information :

X1 : Content Marketing, X2: Customer Relationship Management, Y1 :

Brand Image, Y2: Brand Loyalty

The coefficient of determination used to see the effect of the independent variable (X)

on the mediator variable (Y1) and dependent (Y2). R

helps in assessing the goodness

of fit of a regression equation. It is widely accepted in the social and psychological

applications that an R

of above 75 per cent is very good; between 50–75 percent is

good; between 25–50 percent is fair and below 25 per cent is poor and in the given case,

we can term the model to be good (Singh, 2007). T test is used to determine whether

each of the independent variables individually significant influence on the dependent

variable. In condition; if t

value

> t

table,

so it is significant, there is the influence of the

independent variables. Otherwise, if t

value

< t

table,

so it is not significant. The formula

below are used:

𝑡𝑟

√

𝑛2

√

1𝑟



Whereby:

t = t count, r = Correlation Coefficient, n = Number of data

4 Result and Discussion

4.1 Result

Content marketing and customer relationship management influence the brand image.

The F

value

is 47.128. Meanwhile, with calculating the df1 (k-1 = 3-1 = 2) and df2 (n-k =

100-2 = 98) with the level of significance is 0,05, the F

table

is 3.090. This means the

value

is higher than (>) the F

table

. Thus, it can be concluded that the independent

variables that include content marketing and customer relationship management

simultaneously impact brand image..

Content marketing, customer relationship management, and brand imaget influence

brand loyalty. It can be seen that the F

value

is 26.912. Meanwhile, with calculating the

df1 (k-1 = 4-1 = 3) and df2 (n-k = 100-3 = 97) with the level of significance is 0,05, the

table

is 2.70. This means the F

value

is higher than (>) the F

table

. Thus, it can be concluded

Y1 Y2

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that the independent variables that include content marketing, customer relationship

management, and brand image influence brand loyalty.

The calculated value of R is 0,702 which means it is quite close to 1. Thus, it can

be concluded that content marketing, customer relationship management, and brand

image have a very strong relationship. Meanwhile, the value of R square is 0,493. This

means that both content marketing and customer relationship management have an

influence toward brand image as much as 49,3%. The other 50,7% is influenced by

other factors.

The result of the test with interverning variable, the value of R is 0,676, which is

close to 1. This means, the relationship between content marketing, customer

relationship management, brand image, and brand loyalty as variables is very strong.

Meanwhile, the value of R square is 0,457, which means the independent variables

(content marketing, customer relationship management, brand image) have an

influence toward the dependent variable (brand loyalty) as much as 45,7% and the other

54,3% is influenced by other factors.

The multiple linear regression 1

model from the result shown in the Table 1 is:

Y2 = b1X1 + b2X2 + e

Y2 = 0,226X1 + 0,543X2 + e

Description:

Y2 : dependent variable (brand loyalty), X1: Independent Variable 1 (Content

Marketing),

X2 : Independent Variable 2 (Customer Relationship Management), b1, b2 :

Standardized Coefficents, e: Error.

Table 1. Multiple Linear Regression Model Test Result without Interverning Variable.

Source: primary processing data, 2017

The multiple linear regression 1

model from the result shown in the Table 2 is:

Y2 = b1X1 + b2X2 + b3Y1 e

Y2 = 0,023X1 + 0,451X2 + 0,293Y1 + e

Description:

Y1: Mediating Vairable (Brand Image), X1: Independent Variable 1 (Content

Marketing), X2: Independent Variable 2 (Customer Relationship Management), b1,

b2 : Standardized Coefficents, e: Error

This test is used to determine whether each of the independent variables individually

significant influence on the dependent variable. In condition; if t

value

> t

table,

so it is

significant, there is the influence of the independent variables. Otherwise, if t

value

< t

table,

so it is not significant. It can also be done by comparing the significant value to the

The Inﬂuence of Content Marketing and CRM toward Brand Image and Brand Loyalty

717

value of  = 5%. The first t test is performed to examine the effect of content marketing

(X1) and customer relationship management (X2) on brand image (Y1), with the

hypothesis as follows:

: content marketing has a significant impact on brand image.

: customer relationship management has a significant impact on brand image.

Table 2. Multiple Linear Regression Model Test Result with Interverning Variable.

Source: primary processing data, 2017

Table 3. T-Test Result without Interverning Variable.

Source: primary processing data, 2017

Table shows the result of the processed data using SPSS 17. It shows that the t value

Content Marketing (X1) on Brand Image (Y1) is 2,512, which is higher than (>) the t

table 1,988. Then, the significant level is in the amount of 0,014 which means it is less

than (<) 0,05. It can be concluded that the effect is quite significant. Thus, Hypothesis

1 is accepted.Meanwhile, it is also shows the t value of Customer Relationship

Management (X2) on Brand Image (Y1) is 6,022 that is higher than (>) the t table 1,988.

The significant level is seen as much as 0,000 which is clearly less than (<) 0,05. Then

it is can be said that the effect is also significant. Thus, Hypothesis 2 is accepted. The

second t test is performed to examine the effect of content marketing (X1), customer

relationship management (X2), brand image (Y1) on brand loyalty (Y2), with the

hypothesis as follows:

: content marketing has a significant impact on brand loyalty.

: customer relationship management has a significant impact on brand loyalty

: brand Image has a significant impact on brand loyalty.

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Table 4. T-Test Result with Interverning Variable.

Source: primary processing data, 2017

The t value of content marketing (X1) on brand loyalty (Y2) is 0,208. The t value seems

to be less than (<) the t table which is 1,988. The significant value is as much as 0,836,

which is higher than (>) 0,05. Thus, it can be said that the effect is not significant, and

therefore the H

of Hypothesis 3 is rejected. On the other hand, Table 4 shows the t

value of customer relationship management (X2) on brand loyalty (Y2) which is in the

amount of 4,657. The t value for those variables are higher than (>) the t table which is

1,988. The significant value of customer relationship management (X2) on brand

loyalty (Y2) is 0,000. This value is less than (<) 0,05. Thus, it can be concluded as the

effect is quite significant and the Hypothesis 4 is accepted. Brand image (Y1) on brand

loyalty (Y2) shows a t value as much as 2,779 which is higher than (>) the t value 1,988.

The significant value of those variables is as much as 0,007 which is less than (<) 0,05.

Thus, it can be said that the effect is significant and the Hypothesis 5 is accepted.

Source: primary processing data

Fig. 2. Path Diagram.

Table 5. Recapitulation Test Result of Path Analysis.

Direct effect from X1 to Y2

Indirect effect from X1 to Y1 to Y2

Total influence from X1 to Y2

0,023

(0,226 x 0,293) = 0,066

0,023 + 0,066 = 0,089

Direct effect from X2 to Y2

Indirect effect from X2 to Y1 to Y2

Total influence from X1 to Y2

0,451

(0,543 x 0,293) = 0,129

0,451 + 0,129 = 0,580

Direct influence from Y1 to Y2

0,293

Source: primary sourcing data, 2017

ρX

= 0,226

Content

Marketing

CRM

Brand

Image

Brand

Loyalty

ρX

= 0,023

ρX

= 0,451

ρY

= 0,293

ρX

= 0,543

The Inﬂuence of Content Marketing and CRM toward Brand Image and Brand Loyalty

719

It can be seen that all of the independent variables (content marketing and customer

relationship management) have a positive relationship with the dependent variable

(brand loyalty). It can be interpreted as when there is an increase of X1 , there will be

an increase of Y2 with the assumption other independent variables are constant. When

there is an increase of X2 , there will be an increase of Y2 with the assumption other

independent variables are constant.

4.2 Discussion

The variable content marketing’s influence on brand loyalty has been tested. The result

comes out as not significant. Content marketing has a role to engage potential customers

through social media platform, in order for them to be interested in getting involved

with the brand. Content marketing taps into the first two stages of the buying process

by raising awareness of solutions and educating consumers about a product they may

have never considered before (Steimle, Forbes, 2014). Hence, content marketing’s role

for a brand is only to attract the customers, not keeping the old customers to be loyal.

However, the processed data shows there is a significant influence of content

marketing towards brand image. The respondents of this study are active social media

users who the majority of them had been stumbled upon the content Zalora Indonesia

shared through its social media platform. According to Pulizzi (2013), today’s content

marketing heavily involves social media because those networks are vital to the success

of content marketing efforts. Delivering valuable content, the practice of content

marketing will allow firms to build deep engagement with their customers. Thus, it can

be said that the content Zalora Indonesia has been delivered to its social media followers

have successfully and heavily shaped its brand image as the leading online fashion

store.

There are many ample research on how CRM affect the image of a brand. CRM has

been known as a powerful tool to create a positive experience for customers and form

an image in customers’ mind. This research has tested the variable CRM’s influence on

brand image using SPSS 17, and the result is there is a significant influence. This

research shows that the majority of the respondents agree on the constructed items to

test the variable CRM. Zalora Indonesia, as an online fashion store, has multiple ways

in maintaing the relationship with its customers in order for them to have a positive

experience with the brand.

A study conducted by Wali, Wright and Uduma (2015) proposed that if a firm

established a close relationship with its customers, it would enable them to understand

when customers taste and want has taken a new direction in order to meet their

expectations, resulting a positive brand loyalty behavior. With the result shows in this

study the variable CRM has been tested to have a significant influence and positive

impact on brand loyalty. As a tool to build an in depth relationship with customers, if

CRM done right it could gain a loyalty towards the brand from customers.

Brand image seems to have a strong influence towards brand loyalty. This finding

is supported by a previous research by Saeed, et al. (2013) that confirmed there is a

positive relationship between brand image and brand loyalty. According to numerous

marketing and psychology literatures, researchers believe that brand image can be

viewed as a set of relative localization, identical quality guaranteeing and the function

attribute of the product and service which make consumers reflect their self-image and

which help make purchase decisions (Aghekyan-Simonian et al., 2012). Zalora

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Indonesia has been maintaining its image as an online fashion store offering premium

quality products for people who love fashion.

5 Conclusion

Based on those findings, the processed data also showing a few results that can be

concluded as Content marketing has a significant influence on brand image. The t test

result shows the significant value is higher than the . Content marketing does not have

a significant influence on brand loyalty, as the t test result shows significant value of

the independent variable is higher than the . Customer relationship management has

a significant influence on brand image by which the significant value shown on the t

test result comes out higher than the .Customer relationship management has a

significant influence on brand loyalty. The significant value of the independent variable

shown on the t test result appears to be higher than the . Brand image has a significant

influence towards brand loyalty. Brand image’s significant value comes out to be

higher.

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