How Product Positioning Strategies Foster Consumer Brand Loyalty: The Mediating Role of Value Proposition

Why do some well-positioned products create loyal consumers while others do not? In the highly competitive fast-moving consumer goods (FMCG) market, favourable product attributes alone may be insufficient to secure lasting consumer loyalty. What may matter more is how consumers translate these attributes into perceptions of value. Against this backdrop, this study investigates how product positioning strategies foster consumer brand loyalty through the mediating role of value proposition among FMCG consumers in Selangor, Malaysia. Drawing on Signaling Theory, the study conceptualises product quality, product pricing, and special features as market signals that shape consumers’ evaluation of the value offered by a brand, which subsequently influences their loyalty. A quantitative research design was employed, and data were collected from FMCG consumers using a structured questionnaire. The proposed relationships were analysed using PLS-SEM. The findings reveal that product pricing and special features significantly and positively influence value proposition, whereas product quality does not demonstrate a significant effect. Value proposition, however, has a significant positive effect on consumer brand loyalty. The mediation analysis further demonstrates that value proposition significantly mediates the relationships between product and pricing special towards consumer brand loyalty, while no significant mediating effect is found for product quality. These findings suggest that consumer loyalty is shaped not simply by the presence of favourable product attributes, but by consumers’ assessment of whether the benefits offered justify the costs incurred. The study contributes by demonstrating that selected product positioning strategies operate through a value-based mechanism to foster consumer brand loyalty, thereby providing a more nuanced understanding of how product attributes are transformed into enduring consumer relationships. Practically, the findings highlight the importance of developing value-oriented positioning strategies that combine appropriate pricing with meaningful and differentiated product features.

Management; Marketing

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