Examining The Relationship Between Online Advertisement And Customer Loyalty Via The Underlying Role Of Ad Clicks And Web Trust

Abstract

Purpose – The current study examines the key factors of online advertisements i.e., prior online purchase experience, quality orientation, and privacy concerns and their effect on customer loyalty. Furthermore, we aim to examine the mediating role of ad clicks and moderating role of web trust in the relationship between customer loyalty with the factors of online advertisements.

Method - We employed the regressions analysis technique to analyse the influence of online advertisements on customer loyalty by collecting data from 240 social media users via google forms. We also used Preacher and Hayes method for assessing mediation and moderation analysis.

Findings – Evident from our analysis, all hypothesised relations were statistically significant. Customer loyalty positively regressed on prior online purchase and quality orientation while negatively regressed on privacy concerns. Similarly, ad clicks partially mediates these direct relationships. Similarly, web trust moderates these indirect effects. 

Originality - Our study is a first study to unpack the interplay between online advertisement and customer loyalty via the mediating role of ad clicks and moderating role of we trust thus has several managerial and theoretical implications.