THE EFFECT OF CUSTOMER ENGAGEMENT ON CUSTOMER EQUITY AND REPURCHASE INTENTION IN MOBILE SHOPPING APPLICATIONS

Abstract

The Covid-19 pandemic that has hit since 2020 has limited people's mobility. This has an impact on increasing online transactions. The increasing attention paid to digital marketing to facilitate customer engagement with brands, research on mobile app customer engagement and its consequences is still waiting to be developed. This study, thus, explores how mobile app customers engage with three dimensions (cognitive, emotional, and behavioral) through various social media communities affect customer equity (brand, value, and relationship equity) and repurchase intentions. This study uses structural equation modeling to test the hypothesis. Empirical findings show that mobile shopping app customer engagement (via cognitive, emotional, and behavioral dimensions) positively affects customer equity, which further increases the repurchase intention of existing customers. The findings of this study reveal that customer engagement has a direct effect on repurchase intention and is partially mediated by customer equity. This suggests that the accumulation of customer engagement on brand, value, and relationship equity partially mediates the positive impact of repurchase intentions on mobile shopping applications.