Advertising and Brand Loyalty 
in the South African Solar Industry 

 

by 
 

Zané Dippenaar 
 
 
 

Thesis submitted in fulfilment of the requirements in respect of the degree 
 

DOCTOR OF PHILOSOPHY 
 

in the 

Department of Business Management 

Faculty of Economic and Management Sciences 

University of the Free State 

Bloemfontein, Republic of South Africa 
 
 

 
 
 

Supervisor: Dr Tarisai Fritz Rukuni 
Co-supervisor: Dr Emile Saker Nkwei 

 
October 2024 



 

i 
 

DECLARATION 

I, Zané Dippenaar, declare that the thesis that I herewith submit for the doctoral degree Doctor of 

Philosophy (Business Management) at the University of the Free State is my independent work, and that 

I have not previously submitted it for a qualification at another institution of higher education. 

 

ZANÉ DIPPENAAR       Date: 25 October 2024 

  



 

ii 
 

DEDICATION 

I dedicate this thesis to my family, whose unwavering support has been my anchor throughout this 

journey. 

− To my parents, Carlo and Loami Dippenaar, words cannot fully express how grateful I am for the 

way you nurtured my dreams from the very start. Your unwavering love, endless support, and 

constant encouragement have been the foundation upon which all my achievements rest. I could 

not have reached this point without both of you beside me every step of the way. 

− To my sister, Ané Dippenaar, thank you for sharing our home during the most demanding period 

of writing this thesis. It was no small feat, and your patience, quiet endurance, and willingness to 

take on daily chores were invaluable. Your support made a world of difference and helped me 

push through the most challenging moments. 

− To Ouma Ria, your constant encouragement and loving inquiries about my progress meant more 

to me than you could know. Your thoughtful messages and phone calls uplifted me during difficult 

times, and your belief in me helped me persevere. 

− In loving memory of Oupa Gustav, Oupa AW, and Ouma Annette, although you are not here to 

witness this milestone, I carry your spirits with me every day. I feel your pride and love, and I miss 

you dearly. 

− This accomplishment reflects the collective love and support of each one of you. Thank you for 

being my inspiration, my strength, and my safe haven. 

  



 

iii 
 

ACKNOWLEDGEMENTS 

I am truly grateful to a group of outstanding individuals whose guidance and support were instrumental 

in the completion of this PhD thesis. 

First, I extend my heartfelt thanks to Dr Tarisai Fritz Rukuni. Your rigorous push for adherence to deadlines 

and your invaluable input were crucial to my success. Without your steadfast support and guidance, this 

journey would have been insurmountable. Your involvement went far beyond professional duty; it was a 

cornerstone of my PhD endeavour. 

I am also thankful to Dr Emile Saker Nkwei, who significantly enhanced the quality of my literature review 

and analysis. Your tireless dedication, even during late nights, pushing me to the very end did not go 

unnoticed. I greatly appreciate your continuous encouragement and insightful contributions that have 

left a lasting impact on my work. 

To Prof. Neneh Brownhilder, who was my initial supervisor, I owe a great deal of gratitude. Thank you for 

your patience and for setting me on the correct path by connecting me with Dr Rukuni. Your guidance 

during the early stages of this research was fundamental. 

My sincere appreciation also goes to Daniel Haitzler, Managing Director of IBC SOLAR South Africa. Thank 

you for allowing me to use the resources essential for data collection. Your continued support, 

encouragement, and belief in my work were vital in bridging the practical aspects of this project. 

Last but not least, I cannot express enough thanks to my good friend, Christopher Steven, for your 

unwavering support during this journey. Your patience, emotional support, and continuous 

encouragement helped me find balance during the most intense periods of writing. Your presence 

throughout this process was invaluable. 

This accomplishment is not only mine but also belongs to all of you who have walked this path with me. 

Thank you for your enduring support, wisdom, and encouragement. 

  



 

iv 
 

ABSTRACT 

The South African solar market is expanding rapidly, and it is expected to grow from 5.44 GW in 2023 to 

9.24 GW by 2028, driven by decreasing costs of photovoltaic modules, supportive government policies, 

and high electricity demand. This growth has attracted an influx of both domestic and international 

business-to-business solar distributors in the market leading to intense competition. It is becoming more 

necessary for distributors in the solar industry to develop customer brand loyalty while taking into 

consideration the significance of advertising, competitive advantage, commitment, trust and brand 

awareness. It is upon this background that the current study aimed to develop a model based on the 

moderated mediation effect of brand awareness on the relationship between below-the-line advertising 

and brand loyalty through competitive advantage, commitment, and trust in the South African business-

to-business solar industry. This study adopted a positivist research paradigm, employing a quantitative 

research methodology to achieve its objectives. Data collection was through a questionnaire distributed 

to a convenience sample of 427 solar installation companies subscribed to IBC SOLAR’s platforms in South 

Africa. SmartPLS 4 was utilised to perform data analysis, including descriptive analysis, structural equation 

modelling, as well as mediation and moderation analysis. The structural equation modelling results 

indicated that below-the-line advertising did not affect brand loyalty directly. However, competitive 

advantage and commitment positively influenced brand loyalty, demonstrating that companies with a 

stronger competitive edge and higher levels of commitment enjoy greater brand loyalty. Trust, on the 

other hand, was not a significant predictor of brand loyalty. Furthermore, brand awareness moderated 

the mediation effects of competitive advantage and commitment to the advertising-brand loyalty 

relationship. At higher levels of brand awareness, these mediations were statistically significant, while at 

lower levels, they were not. Trust did not demonstrate significant mediation at any level of brand 

awareness. This study has major implications for theory and practice leading to the improvement of 

customer brand loyalty within the business-to-business solar distributors, which is essential for achieving 

competitive advantage. 

Keywords: Solar industry, Business-to-business, Below-the-line advertising, Brand loyalty, Commitment, 

Trust, Competitive advantage, and Brand awareness. 

  



 

v 
 

LIST OF ABBREVIATIONS 

AVE Average variance extracted 

B2B Business-to-business 

BTL Below-the-line 

CFA Confirmatory factor analysis 

CMV Common method variance 

CTT Commitment-trust theory 

HTMT Heterotrait-monotrait ratio 

IRENA International Renewable Energy Agency 

PLS Partial least squares 

PLS-SEM Partial least squares structural equation modelling 

PV Photovoltaic 

RBT Resource-based theory 

SEM Structural equation modelling 

VIF Variance inflation factor 

VRIN Valuable, rare, inimitable and non-substitutable 

 

  



 

vi 
 

TABLE OF CONTENTS 

Declaration .............................................................................................................................................. i 

Dedication .............................................................................................................................................. ii 

Acknowledgements ............................................................................................................................... iii 

Abstract ................................................................................................................................................. iv 

List of Abbreviations .............................................................................................................................. v 

Table of Contents .................................................................................................................................. vi 

List of Figures ...................................................................................................................................... xiv 

List of Tables ........................................................................................................................................ xv 

CHAPTER 1  

INTRODUCTION AND BACKGROUND OF THE STUDY .............................................................................. 1 

1.1 Chapter overview ................................................................................................................................... 1 

1.2 Introduction ............................................................................................................................................ 1 

1.3 Background to the study ........................................................................................................................ 3 

1.4 Preliminary literature review ................................................................................................................. 5 

1.4.1 Advertising................................................................................................................................. 5 

1.4.2 Brand loyalty ............................................................................................................................. 5 

1.4.3 Competitive advantage ............................................................................................................. 6 

1.4.4 Commitment ............................................................................................................................. 6 

1.4.5 Trust  ................................................................................................................................... 7 

1.4.6 Brand awareness ....................................................................................................................... 7 

1.4.7 Previous empirical studies on advertising, brand loyalty, commitment, trust, 

competitive advantage, and brand awareness ....................................................................... 7 

1.5 Problem statement .............................................................................................................................. 10 

1.6 Research questions .............................................................................................................................. 11 

1.7 Research objectives.............................................................................................................................. 11 

1.7.1 Primary research objectives ................................................................................................... 11 

1.7.1.1 Theoretical research objectives .............................................................................. 11 

1.7.1.2 Empirical research objectives ................................................................................. 12 

1.8 Theoretical framework ........................................................................................................................ 12 

1.8.1 Brand equity theory ................................................................................................................ 12 

1.8.2 Business-to-business advertising effects model .................................................................... 13 



 

vii 
 

1.8.3 Resource-based theory ........................................................................................................... 14 

1.8.4 Commitment-trust theory ...................................................................................................... 15 

1.9 Conceptual framework and hypothesis development ....................................................................... 15 

1.10 Methodology ........................................................................................................................................ 17 

1.10.1 Research philosophy ............................................................................................................... 17 

1.10.2 Research approach ................................................................................................................. 17 

1.10.3 Research method .................................................................................................................... 18 

1.10.4 Research strategy and time horizons ..................................................................................... 18 

1.10.5 Target population ................................................................................................................... 19 

1.10.6 Sampling  ................................................................................................................................. 20 

1.10.7 Data collection ........................................................................................................................ 20 

1.10.7.1 Secondary research data......................................................................................... 20 

1.10.7.2 Primary research data ............................................................................................. 21 

1.10.7.3 Questionnaire design .............................................................................................. 21 

1.10.8 Data analysis............................................................................................................................ 22 

1.11 Contribution of the study .................................................................................................................... 23 

1.12 Ethical considerations .......................................................................................................................... 27 

1.12.1 Permission to conduct the study ............................................................................................ 27 

1.12.2 Informed consent .................................................................................................................... 27 

1.12.3 Right to withdraw ................................................................................................................... 27 

1.12.4 Right to anonymity and confidentiality ................................................................................. 28 

1.12.5 Data storage ............................................................................................................................ 28 

1.12.6 Researcher’s contact details ................................................................................................... 28 

1.12.7 Psychological risk .................................................................................................................... 28 

1.12.8 Data collection instrument ..................................................................................................... 28 

1.13 Thesis outline ....................................................................................................................................... 29 

1.14 Chapter summary ................................................................................................................................. 29 

CHAPTER 2  

CONTEXT ON ADVERTISING AND  BRAND LOYALTY IN THE SOLAR INDUSTRY ...................................... 30 

2.1 Chapter overview ................................................................................................................................. 30 

2.2 Introduction .......................................................................................................................................... 30 

2.3 Definition of business-to-business marketing .................................................................................... 31 

2.3.1 Business-to-business marketing characteristics .................................................................... 33 



 

viii 
 

2.4 Evolution of the solar industry ............................................................................................................ 35 

2.5 Solar industry across the world ........................................................................................................... 36 

2.5.1 Solar industry in Europe ......................................................................................................... 37 

2.5.2 Solar industry in North America ............................................................................................. 39 

2.5.3 Solar industry in Asia .............................................................................................................. 40 

2.5.4 Solar industry in Oceania ........................................................................................................ 42 

2.5.5 Solar industry in South America ............................................................................................. 43 

2.5.6 Solar industry in Africa ............................................................................................................ 44 

2.6 Solar industry in South Africa .............................................................................................................. 46 

2.6.1 Solar industry support in South Africa ................................................................................... 47 

2.6.2 Opportunities for business-to-business solar distributors in South Africa .......................... 48 

2.7 Competition in the business-to-business solar industry in South Africa ........................................... 49 

2.8 Chapter summary ................................................................................................................................. 50 

CHAPTER 3  

THEORETICAL FRAMEWORK ................................................................................................................. 52 

3.1 Chapter overview ................................................................................................................................. 52 

3.2 Introduction .......................................................................................................................................... 52 

3.3 Business-to-business advertising effects model ................................................................................. 52 

3.3.1 Origin and evolution of the business-to-business advertising effects model ...................... 53 

3.3.2 Components of the business-to-business advertising effects model ................................... 54 

3.3.3 Arguments in favour of the business-to-business advertising effects model ...................... 55 

3.3.4 Limitations of the business-to-business advertising effects model ..................................... 56 

3.4 Resource-based theory ........................................................................................................................ 57 

3.4.1 Development of the resource-based theory ......................................................................... 58 

3.4.2 Fundamental aspects of the resource-based theory ............................................................ 59 

3.4.3 Supporting perspectives on the resource-based theory ....................................................... 60 

3.4.4 Drawbacks of the resource-based theory .............................................................................. 61 

3.5 Brand equity theory ............................................................................................................................. 62 

3.5.1 Evolution of the brand equity theory..................................................................................... 62 

3.5.2 Core elements of the brand equity theory ............................................................................ 63 

3.5.3 Value of the brand equity theory ........................................................................................... 64 

3.5.4 Challenges associated with the brand equity theory ............................................................ 65 

3.6 Commitment-trust theory ................................................................................................................... 66 



 

ix 
 

3.6.1 Formation of the commitment-trust theory ......................................................................... 67 

3.6.2 Principal components of the commitment-trust theory ....................................................... 68 

3.6.3 Justifications for the commitment-trust theory .................................................................... 69 

3.6.4 Critiques and limitations of the commitment-trust theory .................................................. 70 

3.7 Chapter summary ................................................................................................................................. 71 

CHAPTER 4  

CONCEPTUAL RESEARCH MODEL AND HYPOTHESES DEVELOPMENT ................................................... 72 

4.1 Chapter overview ................................................................................................................................. 72 

4.2 Introduction .......................................................................................................................................... 72 

4.3 Advertising ............................................................................................................................................ 72 

4.3.1 Definition of advertising ......................................................................................................... 72 

4.3.2 Types of advertising ................................................................................................................ 75 

4.3.2.1 Direct mail advertising ............................................................................................ 75 

4.3.2.2 Social media advertising ......................................................................................... 76 

4.3.2.3 Display advertising .................................................................................................. 76 

4.3.3 Importance of advertising in the study .................................................................................. 77 

4.4 Brand loyalty ......................................................................................................................................... 80 

4.4.1 Definition of brand loyalty ...................................................................................................... 80 

4.4.2 Importance of brand loyalty ................................................................................................... 82 

4.4.3 Role of brand loyalty in the study .......................................................................................... 83 

4.5 Competitive advantage ........................................................................................................................ 85 

4.6 Commitment ........................................................................................................................................ 86 

4.7 Trust ...................................................................................................................................................... 87 

4.8 Brand awareness .................................................................................................................................. 88 

4.9 Conceptual framework and hypotheses development ...................................................................... 89 

4.9.1 Relationship between below-the-line advertising and brand loyalty .................................. 90 

4.9.2 Relationship between competitive advantage and brand loyalty ........................................ 91 

4.9.3 Relationship between commitment and brand loyalty ........................................................ 92 

4.9.4 Relationship between trust and brand loyalty ...................................................................... 94 

4.9.5 Moderated mediation effect of brand awareness ................................................................ 95 

4.9.5.1 Mediating role of competitive advantage .............................................................. 95 

4.9.5.2 Mediating role of commitment .............................................................................. 96 

4.9.5.3 Mediating role of trust ............................................................................................ 96 



 

x 
 

4.9.5.4 Moderating role of brand awareness ..................................................................... 97 

4.10 Chapter summary ................................................................................................................................. 98 

CHAPTER 5  

RESEARCH METHODOLOGY .................................................................................................................. 99 

5.1 Chapter overview ................................................................................................................................. 99 

5.2 Introduction .......................................................................................................................................... 99 

5.3 Research design .................................................................................................................................. 101 

5.4 Research onion framework................................................................................................................ 103 

5.4.1 Research philosophy ............................................................................................................. 103 

5.4.2 Approach to theory development ........................................................................................ 106 

5.4.3 Methodological choice ......................................................................................................... 107 

5.4.4 Research strategy .................................................................................................................. 109 

5.4.5 Time horizon ......................................................................................................................... 112 

5.4.6 Data collection and procedure ............................................................................................. 112 

5.4.7 Operationalisation of constructs and measurements ......................................................... 113 

5.4.7.1 Data collection instrument and measurement .................................................... 113 

5.4.7.2 Pilot study and pretesting of the questionnaire .................................................. 118 

5.4.8 Sampling design and procedures ......................................................................................... 119 

5.4.8.1 Definition of the target population ...................................................................... 119 

5.4.8.2 Selection of a sampling frame .............................................................................. 120 

5.4.8.3 Selection of a sampling technique ....................................................................... 120 

5.4.8.4 Determine the sample size ................................................................................... 121 

5.4.8.5 Execute the sampling process .............................................................................. 122 

5.4.9 Data integrity and data analysis ........................................................................................... 123 

5.4.9.1 Missing data .......................................................................................................... 123 

5.4.9.2 Data cleaning and screening ................................................................................. 124 

5.4.9.3 Descriptive statistics .............................................................................................. 124 

5.4.9.4 Common method variance ................................................................................... 125 

5.4.9.5 Structural equation modelling .............................................................................. 125 

5.5 Chapter summary ............................................................................................................................... 130 

CHAPTER 6  

DATA ANALYSIS AND DISCUSSION...................................................................................................... 131 

6.1 Chapter overview ............................................................................................................................... 131 



 

xi 
 

6.2 Introduction ........................................................................................................................................ 131 

6.3 Primary research objectives and hypotheses ................................................................................... 131 

6.3.1 Empirical research objectives ............................................................................................... 132 

6.3.2 Hypotheses ............................................................................................................................ 132 

6.4 Descriptive statistics .......................................................................................................................... 133 

6.4.1 Screening questions and realisation rate ............................................................................ 133 

6.4.2 Demographic profile of the respondents ............................................................................ 135 

6.4.3 Patronage habits ................................................................................................................... 137 

6.4.4 Central tendency measure of the constructs ...................................................................... 139 

6.4.4.1 Below-the-line advertising .................................................................................... 140 

6.4.4.2 Brand loyalty .......................................................................................................... 142 

6.4.4.3 Commitment ......................................................................................................... 144 

6.4.4.4 Trust ....................................................................................................................... 146 

6.4.4.5 Competitive advantage ......................................................................................... 149 

6.4.4.6 Brand awareness ................................................................................................... 151 

6.5 Common method variance ................................................................................................................ 154 

6.6 Structural equation modelling ........................................................................................................... 154 

6.6.1 Measurement model assessment ........................................................................................ 155 

6.6.1.1 Assessment of reflective measurements ............................................................. 155 

6.6.1.2 Assessment of formative measurements............................................................. 158 

6.6.2 Structural model analysis ..................................................................................................... 159 

6.6.2.1 Collinearity evaluation .......................................................................................... 159 

6.6.2.2 Path analysis: relevance and significance of the structural model ..................... 160 

6.6.2.3 Explanatory power assessment ............................................................................ 163 

6.6.2.4 Predictive power assessment ............................................................................... 164 

6.7 Discussions on testing the hypotheses ............................................................................................. 165 

6.7.1 Relationship between below-the-line advertising and brand loyalty ................................ 165 

6.7.2 Relationship between competitive advantage and brand loyalty ...................................... 166 

6.7.3 Relationship between commitment and brand loyalty ...................................................... 168 

6.7.4 Relationship between trust and brand loyalty .................................................................... 169 

6.7.5 Interplay between brand awareness, below-the-line advertising, brand loyalty, and 

competitive advantage ......................................................................................................... 170 



 

xii 
 

6.7.6 Interplay between brand awareness, below-the-line advertising, brand loyalty, and 

commitment .......................................................................................................................... 171 

6.7.7 Interplay between brand awareness, below-the-line advertising, brand loyalty, and 

trust  ............................................................................................................................... 173 

6.8 Chapter summary ............................................................................................................................... 174 

CHAPTER 7  

CONCLUSION AND RECOMMENDATIONS ........................................................................................... 176 

7.1 Chapter overview ............................................................................................................................... 176 

7.2 Introduction ........................................................................................................................................ 176 

7.3 Conclusions on research objectives and research questions ........................................................... 177 

7.3.1 Conclusion on the literature review ..................................................................................... 177 

7.3.2 Conclusion on solar installation companies’ perceptions ................................................... 177 

7.3.3 Conclusion on the impact of below-the-line advertising on brand loyalty in the 

business-to-business solar industry ..................................................................................... 179 

7.3.4 Conclusion on the effect of competitive advantage on brand loyalty in the business-

to-business solar industry ..................................................................................................... 179 

7.3.5 Conclusion on the effect of commitment on brand loyalty in the business-to-

business solar industry ......................................................................................................... 179 

7.3.6 Conclusion on the effect of trust on brand loyalty in the business-to-business solar 

industry  ............................................................................................................................... 180 

7.3.7 Conclusion on the moderated mediation role of brand awareness ................................... 180 

7.4 Summary of the major findings and conclusions on research hypotheses ..................................... 181 

7.5 Contribution of the study .................................................................................................................. 181 

7.6 Implications for theory....................................................................................................................... 183 

7.7 Implications for practice .................................................................................................................... 184 

7.7.1 Re-evaluate advertising strategies ....................................................................................... 184 

7.7.2 Develop a comprehensive brand loyalty framework .......................................................... 185 

7.7.3 Reconsider the role of trust .................................................................................................. 185 

7.7.4 Foster commitment through customer education .............................................................. 186 

7.7.5 Tailor below-the-line advertising to enhance commitment ............................................... 186 

7.7.6 Prioritise competitive advantage ......................................................................................... 187 

7.7.7 Enhance below-the-line advertising to support competitive advantage ........................... 187 

7.7.8 Leverage brand awareness strategically .............................................................................. 187 

7.8 Limitations of the study ..................................................................................................................... 188 

7.9 Directions for future research ........................................................................................................... 190 



 

xiii 
 

7.10 Chapter summary ............................................................................................................................... 191 

REFERENCE LIST .................................................................................................................................. 192 

APPENDIX A:  

CONSENT FORM AND QUESTIONNAIRE .............................................................................................. 262 

APPENDIX B:  

PLAGIARISM REPORT ......................................................................................................................... 273 

APPENDIX C:  

PROOF OF EDITING ............................................................................................................................. 275 

 

  



 

xiv 
 

LIST OF FIGURES 

Figure 1.1: Conceptual framework .......................................................................................................... 16 

Figure 3.1: Resource-based theory .......................................................................................................... 60 

Figure 3.2: Brand equity theory ............................................................................................................... 64 

Figure 3.3: Association of self-expressive with brand love ...................................................................... 69 

Figure 5.1: Research methodology overview......................................................................................... 100 

Figure 5.2: Research onion .................................................................................................................... 102 

Figure 5.3: Sampling design process ...................................................................................................... 119 

Figure 5.4: SEM process......................................................................................................................... 126 

Figure 6.1: Second-order formative measurement model of BTL advertising ....................................... 159 

Figure 6.2: Structural model .................................................................................................................. 167 

 

  



 

xv 
 

LIST OF TABLES 

Table 1.1: Target population .................................................................................................................. 19 

Table 1.2: Sample size ............................................................................................................................ 20 

Table 1.3: Outline of the thesis .............................................................................................................. 29 

Table 4.1: Importance of brand loyalty .................................................................................................. 83 

Table 5.1: Research philosophies with their respective assumptions .................................................. 104 

Table 5.2: Operationalisation of the constructs ................................................................................... 115 

Table 6.1: Hypotheses formulated for the study .................................................................................. 132 

Table 6.2: Descriptive statistics on brand loyalty among solar installation companies ........................ 134 

Table 6.3: Descriptive statistics of the demographics .......................................................................... 135 

Table 6.4: Most common solar brands installed................................................................................... 136 

Table 6.5: Most common solar distributors ......................................................................................... 138 

Table 6.6: Frequency of purchasing...................................................................................................... 139 

Table 6.7: Below-the-line advertising ................................................................................................... 141 

Table 6.8: Brand loyalty ........................................................................................................................ 143 

Table 6.9: Commitment........................................................................................................................ 145 

Table 6.10: Trust .................................................................................................................................... 148 

Table 6.11: Competitive advantage ........................................................................................................ 150 

Table 6.12: Brand awareness ................................................................................................................. 152 

Table 6.13: Harman’s single-factor test .................................................................................................. 154 

Table 6.14: Construct reliability and validity .......................................................................................... 156 

Table 6.15: Results of discriminant validity of the measurement model using the Fornell and 

Larcker technique ................................................................................................................ 157 

Table 6.16: Results of the discriminant validity of the measurement model HTMT criterion ................ 158 

Table 6.17: VIFs of the second-order formative model .......................................................................... 159 

Table 6.18: VIF outer model ................................................................................................................... 160 

Table 6.19: Direct effects – mean, standard deviation, T values, p values ............................................. 161 

Table 6.20: Moderated mediation effects – mean, standard deviation, T values, p values .................... 162 

Table 6.21: R2 values of constructs ......................................................................................................... 164 

Table 6.22: Path coefficients and significance (f²) .................................................................................. 164 

Table 6.23: Q2 values of constructs ........................................................................................................ 165 



 

1 

CHAPTER 1 

INTRODUCTION AND BACKGROUND OF THE STUDY 

1.1 Chapter overview 

Chapter 1 provides a comprehensive foundation for the research study. It begins by establishing the 

background of the study, followed by a preliminary literature review that covers key concepts such as 

advertising, brand loyalty, brand awareness, commitment, trust, and competitive advantage. Previous 

empirical studies in these areas are also examined. Furthermore, the chapter presents the problem 

statement, research questions, and research objectives, both theoretical and empirical for the study. The 

theoretical framework is introduced, drawing upon theories including the brand equity theory, business-

to-business (B2B) advertising effects model, resource-based theory (RBT), and commitment-trust theory 

(CTT). The conceptual framework is also provided to visually represent the relationships between the 

variables. Additionally, the chapter discusses the contribution of the study to the field and outlines the 

methodology that was employed. This includes an overview of the research philosophy, approach, 

strategy, target population, sampling, data collection methods (both secondary and primary), 

questionnaire design, and data analysis techniques that were used. Lastly, the ethical considerations in 

conducting this research are addressed, while an outline of the subsequent chapters is presented. 

1.2 Introduction 

It is becoming imperative for B2B distributors in the solar industry to develop and maintain mutually 

satisfying long-term relationships. They further have to establish brand loyalty with their customers who 

are, in the context of this study, solar installation companies systems (Guerola-Navarro, Gil-Gomez, Oltra-

Badenes and Soto-Acosta 2022). Building and nurturing brand loyalty is of particular significance in the 

B2B solar sector. This significance is not only for enhancing customer retention but also for mitigating the 

risk of customers switching to alternative brands (Sadamoro, Ajayi, Ayodel and Areola 2023). As per a 

report by Misbrener (2023), the proportion of sales related to solar inverters saw a declining trend, falling 

from 66% in 2021 to 58% in 2022. This decline suggests a notable shift in customer preferences and brand 

choices. This situation is worrisome for B2B players in the solar industry as it might result in a loss of 

competitive advantage if they do not pursue strategic marketing moves. The loss of competitive 

advantage will be regrettable in the South African B2B solar industry considering the positive growth 

prospects within the South African solar industry. South Africa is a leader within the African renewable 



 

2 

energy area (Galal 2023a). It is projected that South Africa will expand its solar industry from 5.44 

gigawatts in 2023 to 9.24 gigawatts by 2028 with an estimated compound annual growth rate of 11.17% 

(Mordor Intelligence Research and Advisory 2023a). 

The growth of the solar industry in South Africa is propelled by decreasing solar photovoltaic (PV) module 

costs, favourable government policies, and the need for reliable electricity (Matthews 2023). 

Furthermore, South Africa’s abundant sunshine and radiation potential, with over 2 500 hours of annual 

sunshine and solar radiation between 4.5 and 6.5 kWh/m2 per day has made the solar industry lucrative 

(Mordor Intelligence Research and Advisory 2023a). This positive outlook in the South African solar 

industry has attracted both local and global B2B distributors to benefit from the growing demand (ECODIT 

LLC 2022). This influx of distributors in the South African B2B solar industry is a cause for concern since it 

has led to enormous competition. Well-known B2B solar distributors fighting for survival in the South 

African solar industry include IBC SOLAR, SolarAfrica, Rubicon, SunPower, Hohm Energy, and Warpower 

(Caine 2023; My Broadband 2023). 

To effectively tackle the challenge of rising competition, B2B solar distributors should understand the 

importance of fostering brand loyalty. According to Hasan and Sohail (2021), strong advertising 

programmes can lead to brand loyalty. Well-known advertising programmes involve the use of direct mail, 

social media, and display advertising (Katz 2022). Despite the importance of advertising in fostering brand 

loyalty, important factors that bring a comprehensive marketing programme such as competitive 

advantage, trust, commitment and brand awareness should not be overlooked (Rane, Achari and 

Choudhary 2023). In the context of this study, brand loyalty refers to consistent and repeated preference 

by a solar installation company for a specific B2B solar distributor (Hasan and Sohail 2021). Advertising 

involves a series of strategic messages through various media to engage and drive specific B2B customer 

actions (Chaffey 2019). Commitment is defined as the extent of dedication and emotional attachment 

individuals or entities exhibit toward the ongoing development and persistence of a relationship (Goutam 

2020; Abid, Siddique, Gulzar, Shamim, Dar and Zafar 2023). Trust, on the other hand, denotes the 

conviction or assurance that one party places in the dependability, honesty, and ethical conduct of 

another party within the context of a relationship (Palací, Salcedo and Topa 2019; Ngah, Abdul Rashid, 

Ariffin, Ibrahim, Abu Osman, Kamalrulzaman, Mohamad and Harun 2022). Competitive advantage is a 

unique position allowing a company to surpass rivals (Correia, Dias and Teixeira 2021). Brand awareness 

is customers' recognition and recall of a brand (Hasan and Sohail 2021). 



 

3 

The body of knowledge shows extensive linear research focusing on advertising, brand loyalty, 

competitive advantage, commitment, trust and brand awareness (Correia et al. 2021; Hanaysha 2022; 

Mei and Wei 2022; Thomran, Alshallaqi, Al-Mamary and Abdulrab 2022; Ma, Wu and Li 2023). Research 

on the aforementioned factors has remained fragmented, involving advertising and brand loyalty 

(Voorveld, van Noort, Muntinga and Bronner 2018); commitment and brand loyalty (Shin, Amenuvor, 

Basilisco and Owusu-Antwi 2019); trust and brand loyalty (Samarah, Bayram, Aljuhmani and Elrehail 

2022); and, advertising and competitive advantage (Adama, Popoola, Okeke and Akinoso 2024). Also, 

despite substantial research that shows the importance of competitive advantage, commitment, and 

trust, there is a gap in the literature involving the mediating role of these factors in the advertising-brand 

loyalty relationship, especially within the B2B setting (Voorveld et al. 2018; Correia et al. 2021; Hanaysha 

2022; Thomran et al. 2022). Existing fragmented literature suggests that existing research on advertising’s 

impact on brand loyalty through commitment, trust, and competitive advantage lacks a cohesive 

framework (Goutam 2020; Palací, Salcedo and Topa 2019; Correia et al. 2021; Hasan and Sohail 2021; 

Ngah et al. 2022; Abid et al. 2023). Also, ignored is the moderation effect of brand awareness on the 

relationship between advertising and brand loyalty. Diverse perspectives, methodologies, and limited 

interdisciplinary integration are evident, hindering a more inclusive understanding. To close this gap, the 

current study sought to build a comprehensive marketing programme for B2B solar distributors in South 

Africa by investigating the moderated mediation effect of brand awareness on the relationship between 

advertising and brand loyalty through competitive advantage, commitment, and trust. 

1.3 Background to the study 

Regional trends and economic dynamics heavily influence the global B2B solar industry. Asian countries 

lead the solar industry, while Europe has seen a decline (Kesari, Atulkar and Pandey 2021). As B2B 

distributors navigate these trends, they must consider the varied opportunities and challenges in different 

regions. Developing countries, in particular, are shifting towards solar utility projects, with an expected 

85% of global energy generation coming from renewables by 2050 (Eseosa and Ejiroro 2020). Notably, 

these nations are building more clean energy infrastructure compared to fossil fuel-based power, driven 

by government initiatives promoting solar rooftop adoption. This presents significant opportunities for 

B2B distributors to enter and expand in these markets. Environmentally conscious consumers increasingly 

prefer products that align with sustainability goals (Kesari et al. 2021). B2B distributors can capitalise on 

this trend by positioning themselves as providers of eco-friendly products and services. Effective 

advertising that emphasises clean energy, reduced carbon footprints, and cost savings can strongly 



 

4 

resonate with target audiences (Kesari et al. 2021; Sadamoro et al. 2023). In Asia, brand loyalty is a 

significant factor influencing corporate responsibility and sustainable development (Min and Leong 2024). 

In North America, solar energy adoption is driven by environmental awareness, government incentives, 

cost reduction, and technological progress (Mordor Intelligence Research and Advisory 2023a). The 

United States is expected to maintain a dominant market position due to its high electricity consumption. 

B2B solar distributors align their products with these priorities, emphasising efficiency, energy 

independence, and reduced reliance on fossil fuels (Asif, Zhongfu, Ahmad, Irfan, Razzaq and Ameer 2022). 

Europe remains a leader in renewable energy, with over 20% of the European Union's energy 

consumption in 2021 derived from renewables (Limb 2023). B2B enterprises can seize this opportunity by 

aligning their offerings with the region's climate goals and emission reduction objectives. European 

customers value sustainability, and informative campaigns that empower environmentally conscious 

choices are effective (Khandai, Mathew, Yadav, Kataria and Kohli 2023). B2B solar distributors can position 

themselves as partners in sustainability, providing solutions and education to their customers (Sadamoro 

et al. 2023). South America presents a varied landscape due to economic disparities, but growth in solar 

energy is driven by government policies, increasing demand, and the falling cost of solar PV systems 

(Mordor Intelligence Research and Advisory 2023b). B2B distributors must tailor their advertising 

strategies to highlight affordability, energy independence, and social progress, thereby fostering brand 

loyalty (Asif et al. 2022; Ukoba, Yoro, Eterigho-Ikelegbe, Ibegbulam and Jen 2024). Africa's solar sector is 

growing, with installed solar power capacity projected to increase significantly by 2040 (Awose 2023). B2B 

distributors must tailor their messaging to Africa’s diverse markets, emphasising local benefits such as job 

creation and stakeholder engagement (Creamer 2022; ECODIT LLC 2022). Public awareness campaigns 

that educate about solar energy's benefits are essential for building trust and fostering adoption 

(REGlobal 2021). 

In South Africa, a leader in Africa’s renewable energy sector, B2B distributors face unique challenges and 

opportunities. The country’s ambitious solar energy goals, coupled with government policies and the need 

for reliable electricity, drive market growth (Galal 2023a; Matthews 2023). Advertising in South Africa 

focuses on energy security, cost savings, and environmental responsibility, resonating with customers 

facing electricity shortages (Ferragamo 2023). Brand loyalty is critical in South Africa, where energy 

demand and supply shortages are prevalent (Omarjee 2023). Effective communication of reduced reliance 

on conventional energy sources and partnerships in the renewable energy sector is crucial (Kumar 2020). 

B2B distributors must address these challenges transparently to foster trust and loyalty in a competitive 



 

5 

market (Poblete and Halldórsson 2023). Given the importance of brand loyalty in the solar industry, 

particularly in South Africa, this study explores the integration of multiple theoretical frameworks to 

understand brand loyalty in a B2B context. It combines insights from the B2B advertising effects model, 

brand equity theory, resource-based theory, and the commitment-trust theory to examine cognitive, 

emotional, and competitive dynamics in the industry (Shan, Luo, Zhou and Wei 2019; Bernarto, Berlianto, 

Meilani, Masman and Suryawan 2020; Cortez, Gilliland and Johnston 2020; Pascual-Ferrá 2021; Nayak, 

Bhattacharyya and Krishnamoorthy 2023; Alcántara-Pilar, Rodriguez-López, Kalinić and Liébana-

Cabanillas 2024). 

1.4 Preliminary literature review 

This section discusses the preliminary literature on advertising, brand loyalty, brand awareness, 

commitment, trust, and competitive advantage. This is important in providing an early understanding of 

the key constructs of the study. Advertising is discussed next. 

1.4.1 Advertising 

Different forms of advertising are commonly classified as “above-the-line” and “below-the-line” (BTL) 

advertising (Alina, Jahangir and Malik 2023). This study opted to concentrate solely on BTL advertising to 

assess its influence on brand loyalty. Above-the-line advertising primarily centres around using mass 

media platforms to connect with a broad and varied audience. In contrast, BTL advertising is based on 

engaging with specific, targeted segments of the audience. This typically involves employing personalised 

and direct communication methods to connect with a particular group of customers (Prete 2015). While 

various advertising types have been explored, this study concentrates more on BTL advertising. This 

includes social media advertising, direct mail advertising, and display advertising, such as display banners 

in the online shop (Swani, Brown and Mudambi 2020; Qader, Hamza, Othman, Anwer, Hamad, Gardi and 

Ibrahim 2022; Indeed Editorial Team 2023). 

1.4.2 Brand loyalty 

Brand loyalty is a critical outcome of effective marketing efforts, reflecting the depth of the emotional 

and psychological bond between customers and a brand (Ghorbanzadeh 2021). Measuring brand loyalty 

involves a combination of both attitudinal and behavioural aspects. Traditional measures include repeat 

purchase rates, purchase frequency, and customer retention rates, which indicate the extent to which 



 

6 

customers consistently choose a particular brand (Dick and Basu 1994). Customer satisfaction and net 

promoter score are indicators that evaluate consumer perceptions and the likelihood of recommending 

the brand to others (Barath 2022). Moreover, modern approaches to measuring brand loyalty incorporate 

social media sentiment analysis to gauge online conversations and sentiment toward the brand (Bastug, 

Calisir, Gülmez and Ateş 2020). 

1.4.3 Competitive advantage 

Competitive advantage is a pivotal aspect of strategic management, signifying the distinct strengths and 

capabilities that empower a company to surpass its competitors. A thorough assessment combining 

market, financial, and resource-based measures furnishes a grasp of a firm's competitive advantage, 

informing strategic decision-making. Market-oriented measures, such as market share, growth rate, and 

customer retention, shed light on the firm’s comparative standing (Gleißner, Helm and Kreiter 2013; 

Mehta 2023). Financial indicators, including return on assets and return on equity, reflect the firm's ability 

to generate profits from its resources (Grant 2016; Wijayanto, Suhadak, Dzulkirom and Nuzula 2019). 

Resource-based measures, rooted in the resource-based view of the firm, assess the firm’s unique 

resources, capabilities, and core competencies that drive its competitive advantage (Shan, Luo, Zhou and 

Wei 2019). Moreover, dynamic capabilities, which encompass the firm's adaptability and innovation, play 

a role in measuring competitive advantage in swiftly changing markets (Ferreira, Coelho and Moutinho 

2020). 

1.4.4 Commitment 

Evaluating commitment is a complex and context-dependent process, characterised by variations in its 

definitions and dimensions. Marketing research has consistently utilised a three-component commitment 

model, including affective, normative, and calculative commitment (Muda and Fook 2020). First, limited 

alternatives and the costs associated with switching are recognised constraints on switching decisions, 

suggesting that higher calculative commitment reduces the likelihood of defection. Second, normative 

considerations, influenced by social pressures, can either hinder or facilitate switching behaviours, with 

greater normative pressure increasing the likelihood of customer retention. Lastly, increased satisfaction 

and positive emotions derived from a relationship make alternative options less appealing, reinforcing 

customer loyalty intentions and indicating affective commitment. 



 

7 

1.4.5 Trust 

Trust is a fundamental concept spanning various domains, and its evaluation holds significance for 

comprehending relationships and decision-making processes. Furthermore, trust is subject to influences 

such as perceived competence and benevolence. Its assessment should be context-specific, whether 

within interpersonal relationships, business dealings, or online interactions (Di Battista, Pivetti and Berti 

2020). Acknowledging trust's diverse roles in various settings and employing suitable assessment 

approaches is vital for both research endeavours and practical applications. 

1.4.6 Brand awareness 

Brand awareness is vital in consumer decision-making processes, exerting a crucial influence on the 

efficacy of marketing strategies. Increasing brand awareness involves assessing the degree to which a 

brand is recognised and recalled by customers through aided and unaided recall (Khurram, Qadeer and 

Sheeraz 2018). Brand recognition and recall indicate customers' capacity to identify a brand within a set 

of alternatives. Furthermore, metrics such as brand exposure and reach, often quantified through 

impressions and advertising campaign reach, offer numerical indicators of brand visibility (Chierici, Del 

Bosco, Mazzucchelli and Chiacchierini 2019). Modern technology has introduced digital analytics tools 

that track online interactions, click-through rates, and social media mentions, providing a more inclusive 

perspective on digital brand awareness (Azizan, Chik, Zulaika, Fadzli and Ishar 2023). By integrating 

cognitive and behavioural measurements, marketers can broadly understand how brand awareness 

influences consumer perceptions and preferences. 

1.4.7 Previous empirical studies on advertising, brand loyalty, commitment, trust, 

competitive advantage, and brand awareness 

The role of advertising in promoting brand loyalty extends far beyond basic communication (Ha, John, 

Janda and Muthaly 2011; Rather, Tehseen and Parrey 2018). Voorveld et al. (2018) previously found that 

there is a positive and significant link between using multi-channel advertising strategies and boosting 

brand loyalty, especially when integrating online and traditional media. Similarly, Ma et al. (2023) 

concluded that such an investment reflects a brand's confidence in its products, which in turn strengthens 

consumer trust and loyalty. Jain, Basu, and Dwivedi (2024) also highlighted that product advertising is the 

strongest predictor of customer loyalty in the consumer goods industry, underlining the role of targeted 

advertising efforts in fostering long-term brand relationships. In the restaurant sector, Rahi, Ammara and 



 

8 

Qazi (2021) found that advertising plays a pivotal role in building loyalty, demonstrating the cross-industry 

relevance of these strategies. Furthermore, Kulawardena and Kalpana (2024) discovered that 

entertainment value from social media advertising significantly impacted consumer brand loyalty in Sri 

Lanka's apparel retail industry, revealing the growing importance of engagement, and creative 

advertisement content in maintaining customer loyalty. 

Recent research highlights the critical role of competitive advantage as a mediator in various business 

contexts, including its influence on the relationship between environmental, social, and governance 

practices, brand reputation, and customer loyalty (Singh, Verma, Fatima and Kumar 2024). Studies also 

show that competitive advantage mediates the relationship between financial standards, innovation 

adoption, market orientation, and small and medium-sized enterprise performance (Correia et al. 2021; 

Inrawan, Silitonga, Halim, Lie and Sudirman 2021). Additionally, the direct impact of competitive 

advantage on brand loyalty is supported by findings from Adama et al. (2024), emphasising its importance 

in B2B sectors like solar installation, and Arslan (2020), who examined its influence on customer loyalty 

through perceived value and trust. 

Brand commitment has been found to mediate various relationships in different contexts, and its impact 

on brand loyalty is well-documented. Alkhawaldeh, Al-Salaymeh, Alshare and Eneizan (2017) identified 

that brand commitment mediates the link between brand awareness and brand loyalty in the economic 

sectors of Jordan, emphasising its role in maintaining customer loyalty. Similarly, Amani (2015) found that 

commitment mediates the relationship between trust and relationship loyalty in the retail sector, 

underscoring the importance of trust in building loyal customer bases. Additionally, Van Tonder (2016) 

highlighted that commitment mediates the relationship between quality advice and customer loyalty 

towards insurance agents, pointing to the influence of both trust and commitment on customer retention. 

In addition to these findings, the direct impact of commitment on brand loyalty will also be tested in this 

research. Studies have shown a strong direct relationship between commitment and loyalty. For instance, 

Shin et al. (2019) revealed that smartphone users in South Korea with strong brand commitment are more 

likely to develop lasting loyalty, reinforcing commitment as a key factor in cultivating long-term customer 

relationships. Similarly, Malik (2020) found that brand awareness and brand commitment positively 

influence brand loyalty, with customer satisfaction acting as a mediator in the restaurant sector. These 

studies illustrate the significant role of brand commitment both as a mediator and a direct driver of brand 

loyalty, which justifies its inclusion in this study. 



 

9 

Trust has been empirically confirmed as a critical mediator in various contexts across numerous studies 

conducted over the past decade (Trivedi and Yadav 2020; Barden, Wang, Sternberg, Poole and 

Balderrama-Durbin 2021; Hanaysha 2022). Arslan (2020) examined the impact of customer-perceived 

value and competitive advantage on customer loyalty, demonstrating that trust significantly mediates this 

relationship, reinforcing the role of competitive dynamics in fostering loyalty. Similarly, Trivedi and Yadav 

(2020) showed how trust amplifies the effect of consumer satisfaction by significantly enhancing the 

relationship between e-satisfaction and repurchase intentions among Generation Y customers, 

suggesting that trust not only affects immediate consumer behaviour but also strengthens long-term 

customer loyalty and engagement. Additionally, the direct impact of trust on brand loyalty will be tested, 

supported by studies such as Samarah et al. (2022), which highlighted brand trust’s critical role in shaping 

loyalty in the consumer electronics market, and Chen, Prentice, Weaven and Hisao (2022), who found a 

strong correlation between customer trust, engagement, and loyalty in the home-sharing sector. These 

studies collectively affirm trust's pivotal role as both a mediator and a direct influencer of customer loyalty 

across diverse domains. 

Brand awareness significantly influences outcomes related to firm performance, competitive advantage, 

and consumer behaviour across various contexts. Tiwari, Bryde, Stavropoulou and Malhotra (2024) found 

that brand awareness moderates the relationship between supply chain flexibility and business 

performance, while Kozlenkova, Samaha and Palmatier (2014) showed that it enhances the effectiveness 

of marketing capabilities in driving firm success. Similarly, Thomran et al. (2022) discovered that brand 

awareness positively affects small and medium-sized enterprises’ competitive advantage. Expanding this, 

several studies highlight the moderating role of brand awareness in shaping consumer behaviour. Yigit 

and Tıgli (2018) demonstrated that brand awareness and brand loyalty moderate the effects of browsing 

behaviour, perceived low prices, and time pressure on online impulse buying, while Adiwijaya, 

McGuinness, Cary and Herjanto (2021) found it moderates the relationship between product innovation, 

brand trust, and brand loyalty. In the mobile banking sector, Mekebbaty, Saleh and Al Badaly (2020) 

showed that brand awareness strengthens the link between brand experience and trust, and Fatah (2024) 

found that awareness levels moderate the relationship between content types and purchase intention. 

These studies collectively suggest that brand awareness, while indirectly boosting brand loyalty, plays a 

crucial role in reinforcing factors such as trust, purchase intention, and impulse buying, thus enhancing 

overall brand performance (Imran, Durrani, Ishfaq and Ashraf 2020). The problem statement will be 

outlined in the next section. 



 

10 

1.5 Problem statement 

The South African solar energy market is steadily expanding, driven by supportive government policies 

and increasing consumer awareness of renewable energy benefits (Matthews 2023; Mordor Intelligence 

Research and Advisory 2023a). This resulted in a compelling incentive for B2B distributors to enter the 

South African solar industry. The growing demand for clean energy solutions coupled with the country’s 

abundant solar resources makes it an attractive investment opportunity for B2B solar distributors seeking 

to capitalise on the shift towards sustainability. This helps reduce reliance on traditional energy sources. 

As a result, an influx of B2B solar distributors is entering the South African market, intensifying 

competition and fostering innovation in the industry (ECODIT LLC 2022; My Broadband 2023). Therefore, 

distributors in the solar industry operating in a B2B setting are increasingly compelled to establish brand 

loyalty with solar installation companies (Guerola-Navarro et al. 2022). This loyalty is crucial in solar 

energy to retain customers and reduce brand switching (Sadamoro et al. 2023). 

The solar energy industry has shown significant promise in terms of growth and sustainability (Mordor 

Intelligence Research and Advisory 2023a). However, various obstacles accompany this promising growth, 

particularly due to increased competition. Among the notable hurdles, the industry grapples with brand-

switching and the issue of limited awareness among potential customers (Misbrener 2023). B2B solar 

distributors, who play a pivotal role in the industry's distribution chain, face a unique set of difficulties. 

They are tasked with the dual challenge of maintaining brand loyalty among existing customers while 

establishing brand awareness to attract new customers (Alkhawaldeh et al. 2017). This is particularly 

problematic in an environment marked by a prevailing trend of brand-switching (Misbrener 2023). This 

complex landscape necessitates innovative solutions and strategies to overcome these obstacles and 

continue the industry’s promising trajectory. Therefore, to prevent shifting between brands, effective 

advertising and maintaining competitive advantage are key (Rua and Santos 2022). Nurturing higher 

commitment and trust also plays a pivotal role in sustaining brand loyalty (Bricci, Fragata and Antunes 

2016; Melewar, Foroudi, Gupta, Kitchen and Foroudi 2017; Rane et al. 2023). 

Existing literature on advertising, brand loyalty, brand awareness, commitment, trust, and competitive 

advantage is fragmented. While some studies have focused on factors influencing the relationship 

between different types of advertising and brand loyalty (Hasan and Sohail 2021), others have focused on 

the mediation effect of commitment (Ribeiro, Duarte, Filipe and David 2022), trust (Trivedi and Yadav 

2020), competitive advantage (Correia et al. 2021), and the moderation effect of brand awareness (Yigit 



 

11 

and Tıgli 2018). However, there is a lack of studies investigating the moderation-mediation factors in the 

relationship between BTL advertising and brand loyalty. The fragmentation of existing literature 

emphasises the need for a moderated mediation model that elucidates the interplay between BTL 

advertising, competitive advantage, commitment, trust, brand awareness, and brand loyalty. 

1.6 Research questions 

Based on the research problem identified in the previous section, the following research questions are 

formulated: 

i. To what extent does BTL advertising influence brand loyalty in the South African B2B solar 

industry? 

ii. To what extent does competitive advantage influence brand loyalty in the South African B2B solar 

industry? 

iii. To what extent does commitment influence brand loyalty in the South African B2B solar industry? 

iv. To what extent does trust influence brand loyalty in the South African B2B solar industry? 

v. Is there a moderated mediation effect of brand awareness on the relationship between BTL 

advertising and brand loyalty through competitive advantage, commitment, and trust in the 

South African B2B solar industry? 

1.7 Research objectives 

1.7.1 Primary research objectives 

To develop a model based on the moderated mediation effect of brand awareness on the relationship 

between BTL advertising and brand loyalty through competitive advantage, commitment, and trust in the 

South African B2B solar industry. 

1.7.1.1 Theoretical research objectives 

i. To review the literature on the B2B advertising effects model, resource-based theory, brand 

equity theory, and commitment-trust theory. 

ii. To review the literature on BTL advertising, brand loyalty, competitive advantage, commitment, 

trust, and brand awareness. 



 

12 

1.7.1.2 Empirical research objectives 

i. To measure the impact of BTL advertising on brand loyalty in the South African solar industry. 

ii. To evaluate the effect of competitive advantage on brand loyalty in the South African B2B solar 

industry. 

iii. To investigate the effect of commitment on brand loyalty in the South African B2B solar industry. 

iv. To measure the effect of trust on brand loyalty in the South African B2B solar industry. 

v. To examine the moderated mediation effect of brand awareness on the relationship between BTL 

advertising and brand loyalty through competitive advantage, commitment and trust in the South 

African B2B solar industry. 

1.8 Theoretical framework 

This study adopts an inclusive approach by grounding itself in four essential theories: brand equity theory, 

B2B advertising effects model, RBT, and CTT. These theories were instrumental in identifying key factors 

contributing directly or indirectly to brand loyalty in the context of the South African B2B solar industry. 

Each theory is further discussed next. 

1.8.1 Brand equity theory 

The brand equity theory, as initially proposed by Keller (1993) and who subsequently revised the theory 

in 2008, has been a cornerstone in understanding the dynamics of advertising and its influence on 

consumer responses (Keller 2008; Khamitov, Grégoire and Suri 2020). The theory emphasises the pivotal 

role of brand awareness and image in shaping consumer perceptions and includes factors such as 

perceived quality, brand awareness, brand associations, and brand loyalty (Foroudi, Jin, Gupta, Foroudi 

and Kitchen 2018). In the B2B context, where distributors sell solar solutions to solar installation 

companies, the brand equity framework offers insights into building strong and enduring relationships 

between B2B solar distributors and installation companies. This highlights the importance of cultivating a 

positive brand image and awareness within this professional network. However, the prevalence of the 

theory in the literature may be more focused on business-to-consumer contexts, and its application in 

B2B settings may be relatively limited. 

The brand equity theory lacks explicit consideration for the rational cognitive process underlying brand 

loyalty (Syed Alwi, Nguyen, Melewar, Loh and Liu 2016). Brand loyalty, particularly in B2B scenarios, often 

involves a rational decision-making process influenced by factors beyond mere awareness and 



 

13 

associations. The theory falls short in elucidating how brand awareness directly relates to rational brand 

loyalty, neglecting the cognitive intricacies involved in B2B relationships. Moreover, the theory does not 

incorporate the B2B advertising effects model, especially concerning the role of advertising in shaping 

rational brand loyalty. The dynamic nature of customers’ cognitive processes, especially in response to 

advertising stimuli, remains underexplored within the brand equity framework. This hindrance impacts 

the understanding of the interplay between advertising, brand awareness, and loyalty in B2B contexts. 

1.8.2 Business-to-business advertising effects model 

The B2B advertising effects model comprehensively outlines how advertising stimuli are processed and 

responded to within B2B environments. Developed from foundational research by Cortez et al. (2020), 

the model is structured around three core stages: antecedent conditions, information processing, and 

consequent conditions. The antecedent conditions involve personal relevance (buy task involvement) and 

situational specifics. These include factors such as the role within the buying centre and the importance 

of the purchase, which influence the initial engagement with the advertisement. Information processing 

can follow two paths: the central route, where the content is critically analysed, or the peripheral route, 

where the focus is on superficial elements (Zha, Yang, Yan, Liu and Huang 2018). The consequent 

conditions describe the outcomes of this processing, which can be cognitive (thoughts and judgments 

about the advertisement content) or emotional (feelings elicited by the advertisement). This model 

underscores the complexity of B2B buying decisions, which are influenced not just by the content of 

communications but also by the interplay of individual buyer characteristics and broader situational 

factors. By accounting for these varied factors, the model provides a nuanced framework for 

understanding and predicting organisational buying behaviours. This understanding is essential for 

effectively targeting and influencing B2B customers (Cortez et al. 2020). 

Despite the strengths of the B2B advertising effects model in explaining the sequential processing of 

advertising stimuli and the impact of personal and situational factors on such processes, it is often 

critiqued. The criticism stems from its narrow focus on media-specific influences. This narrow focus 

somewhat neglects the broader contextual factors that affect decision-making in a B2B context. While 

Cortez et al. (2020) recognise competing messages as part of the environmental factors that influence the 

effectiveness of B2B advertising, this recognition does not extend deeply. It fails to cover strategic 

response mechanisms or differentiation techniques in the face of such competition. Integrating insights 

from other theories, particularly those that address social and psychological aspects of organisational 



 

14 

behaviour, could offer a more comprehensive understanding of customer behaviour. This is especially 

relevant in relation to brand loyalty (Yoshida, Gordon, Nakazawa, Shibuya and Fujiwara 2018). 

Additionally, the recognition of the dynamic nature of market conditions and competitor activities 

suggests that longitudinal or dynamic models could provide deeper insights into how the effects of 

advertising evolve. 

In B2B relationships, such as those between solar distributors and installation companies, the B2B 

advertising effects model can help reveal how advertising affects brand awareness and loyalty (Bilgin 

2018). To gain a better understanding of brand loyalty in these B2B settings, it can be beneficial to 

incorporate insights from the RBT. The RBT, with its focus on competitive advantage, offers a perspective 

that recognises brand loyalty as stemming from both cognitive outcomes. It also considers the strategic 

resources and competitive advantages a brand provides in B2B relationships (Shan et al. 2019). This 

integrated approach would provide a holistic view of brand loyalty, encompassing both cognitive and 

emotional processes and the strategic value brought by the brand to the B2B relationship. 

1.8.3 Resource-based theory 

Aligned with both the brand equity theory and the B2B advertising effects model, the RBT introduces a 

unique perspective. It emphasises the crucial role of a firm's internal resources and capabilities in shaping 

its success and competitive advantage. The RBT is particularly relevant in B2B contexts, where firms often 

have unique resources, capabilities, and competitive advantages that they leverage to gain a competitive 

edge (Utami and Alamanos 2022). Business-to-business solar distributors may differentiate themselves 

based on their resources and capabilities. Furthermore, the theory explicitly links competitive advantage 

to entrepreneurial success, broadening the study's scope beyond brand loyalty and awareness to include 

the overall prosperity and longevity of the firm (Alvarez and Barney 2002; Shan et al. 2019). In the context 

of the solar industry, the RBT could shed light on how a distributor's internal resources contribute to its 

competitive advantage in the market (Zhang, Hou, Yang, Yang and Wang 2021). These resources include 

advertising communication and supply chain management. 

However, the model provides a potentially static view of resources, which can be addressed by adopting 

a dynamic perspective that recognises the evolution of resources over time (Barney, Ketchen and Wright 

2021). Integrating insights from other theories, particularly the CTT, into the RBT can further enrich the 

study by considering the interpersonal and relational aspects that contribute to brand loyalty in B2B 

relationships. Empirical validation within the specific context of advertising, brand loyalty, and other 



 

15 

variables under investigation would enhance the study. It would confirm the relevance of RBT in the 

examined scenarios, ultimately providing an understanding of how a firm's internal resources contribute 

to competitive advantage and entrepreneurial success. 

1.8.4 Commitment-trust theory 

Connected to both the B2B advertising effects model and the RBT previously discussed, the CTT offers a 

socio-relational perspective on business interactions (Scarpi, Raggiotto and Visentin 2022). Unlike the B2B 

advertising effects model's emphasis on cognitive processes and the RBT’s focus on internal resources 

and competition, the CTT delves into the interpersonal dynamics that shape commitment and trust 

between parties. The theory posits that commitment and trust are reciprocal and mutually reinforcing, 

creating a foundation for long-term relationships (Agarwal and Narayana 2020). It was initially developed 

in the e-commerce B2B context (Wang, Wang and Liu 2016). Therefore, in the sphere of B2B transactions 

where distributors sell to installation companies in the solar industry, the CTT is highly relevant in B2B 

contexts, where long-term business relationships are crucial. Especially since the CTT takes on special 

significance by underscoring the importance of relational elements in nurturing loyalty and collaboration. 

Building trust and commitment between business partners is essential for successful collaborations and 

ongoing transactions. A relevant model for this study, grounded in the CTT, is the one presented by Suhan, 

Nayak, Nayak, Spulbar, Bai, Birau, Anghel and Stanciu (2022). This model focuses on the connection 

between self-expressive tendencies and brand love, with brand commitment and trust acting as 

mediators, ultimately leading to the outcome of brand loyalty. The next section presents the conceptual 

framework. 

1.9 Conceptual framework and hypothesis development 

This conceptual framework integrates the brand equity theory (Keller 1993; Bernarto, Berlianto, Meilani, 

Masman and Suryawan 2020), the B2B advertising effects model (Gilliland and Johnston 1997; Cortez et 

al. 2020), the RBT (Petty, Cacioppo and Schumann 1983; Shan et al. 2019; Nayak et al. 2023), and the CTT 

(Morgan and Hunt 1994; Pascual-Ferrá 2021; Alcántara-Pilar, Rodriguez-Lopéz, Kalinić and Liébana-

Cabanillas 2024). Through the evaluation of the above theories, seven primary constructs have been 

identified: (i) BTL advertising, (ii) brand loyalty, (iii) competitive advantage, (iv) commitment, (v) trust, and 

(vi) brand awareness. 



 

16 

The conceptual framework in Figure 1.1 suggests that competitive advantage, commitment, and trust 

amplify the impact of BTL advertising on brand loyalty in the solar industry, with the degree of 

enhancement contingent upon the level of brand awareness. In other words, the model examines 

whether the level of brand awareness regulates the mediating role of competitive advantage, 

commitment, and trust on the link between BTL advertising and brand. These relationships are specifically 

examined within the context of B2B interactions between distributors and installation companies in the 

solar industry. 

 

Figure 1.1: Conceptual framework 

The hypotheses depicted in Figure 1.1, and the conceptual framework, are formulated as follows: 

− H1:BTL advertising has a positive statistically significant effect on brand loyalty. 

− H2: Competitive advantage has a statistically significant effect on brand loyalty. 

− H3: Commitment has a statistically significant effect on brand loyalty. 

− H4: Trust has a statistically significant effect on brand loyalty. 

− H5: Brand awareness moderates the mediated role of competitive advantage on the relationship 

between BTL advertising and brand loyalty. 

− H6: Brand awareness moderates the mediated role of commitment in the relationship between 

BTL advertising and brand loyalty. 

B2B Advertising Effects 

Model 
Brand Equity  

Theory 

  

Resource-Based  

Theory (RBT) 

Commitment-Trust 

Theory (CTT)  

Competitive 

Advantage 

BELOW THE LINE 

ADVERTISING 

Direct mail advertising 

Social media advertising 

Display advertising 

Brand Loyalty 

Trust 

Commitment 

 Brand Equity  

Theory 

Brand Awareness 

H1 

H2 

H3 

H4 

H5 

H6 

H7 



 

17 

− H7: Brand awareness moderates the mediated role of trust in the relationship between BTL 

advertising and brand loyalty. 

1.10 Methodology 

This section provides an overview of the research methodology for the study. Research methodology, as 

defined by Saunders, Lewis and Thornhill (2019), refers to the “steps researchers take to collect and 

analyse data”. It includes the research philosophy, approach, strategy, time horizons, target population, 

participant sampling method, data collection methods, questionnaire design, and data analysis methods.  

1.10.1 Research philosophy 

Research philosophy pertains to the researcher's viewpoint on the nature of reality and the researcher-

researched relationship (Saunders et al. 2019). It constitutes a foundational aspect of research, including 

ontology and epistemology considerations, as outlined by Melnikovas (2018). Research philosophy 

encompasses the scholar’s perspective on reality and the dynamic between the investigator and the 

subject of study. The main paradigms in the literature include realism, positivism, interpretivism, and 

pragmatism (Melnikovas 2018; Saunders et al. 2019). Positivism, as emphasised by Park, Konge and Artino 

(2020), aligns with the research objectives, emphasising empirical observation and quantitative 

techniques to reveal systematic patterns, associations, and trends. It was chosen for this study to explore 

the BTL advertising-brand loyalty dynamics within the South African B2B solar industry, aiming to 

generate findings that are both objective and applicable. 

1.10.2 Research approach 

A research approach serves as the foundational framework guiding the systematic design and execution 

of a research study, and it can be deductive, abductive, or inductive (Saunders et al. 2019). Considering 

this study’s intent to examine theories and test hypotheses based on existing literature, a deductive 

approach was adopted as the guiding orientation (Zefeiti and Mohamad 2015; Casula, Rangarajan and 

Shields 2021). This approach tests hypotheses derived from theories to confirm or refute relationships 

between constructs. 



 

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1.10.3 Research method 

Within research methodology, various approaches guide the collection and analysis of data including 

qualitative, quantitative, and mixed methods (Creswell and Clark 2017). Given the deductive approach 

chosen to examine theories and hypotheses testing, along with the need for statistical analysis (Babbie 

2016; Casula et al. 2021), the researcher employed a quantitative research method. This choice aligns 

with the research objectives, allows precise measurement, enhances data reliability, and efficiently 

manages the study’s scale. Therefore, making it suitable for systematic investigation and hypothesis 

testing in the context of BTL advertising-brand loyalty dynamics. 

1.10.4 Research strategy and time horizons 

The research strategy serves as a plan outlining how researchers intend to conduct their study, providing 

a structured framework to address research questions or hypotheses. Several research strategies exist, 

including but not limited to a survey, experiment, action research, case study, ethnography, grounded 

theory, archival research, and narrative inquiry (Saunders et al. 2019). Survey research, specifically, 

involves the collection of data from a sample through standardised questionnaires to uncover patterns 

and trends (Babbie 2016). Therefore, for this study, the survey research strategy was employed. Surveys 

are valuable for collecting quantitative data from a wide range of respondents, facilitating the 

examination of trends and relationships among variables (Babbie 2016). In the context of the South 

African solar energy industry, utilising surveys will enable the researcher to efficiently obtain insights from 

a significant number of customers. The quantitative nature of surveys aligns with the deductive approach 

to theory development chosen for this study, enhancing the capacity to test hypotheses and draw 

objective conclusions. 

There are two time horizon modes: cross-sectional studies and longitudinal studies (Saunders et al. 2019). 

This study adopted a cross-sectional approach. This allowed the capture of data at a specific point in time, 

offering a snapshot of a particular phenomenon. This approach is appropriate because it allows for 

efficient data collection from the identified customers. Given the focus on exploring the factors 

influencing brand loyalty in the South African B2B solar industry, a cross-sectional study provided a timely 

and inclusive understanding of these dynamics. 



 

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1.10.5 Target population 

A population encompasses individuals, objects, or elements with common attributes investigated within 

a research context (Rashid, Rasheed, Amirah, Yusof, Khan and Agha 2021). In research, it is the larger 

group from a drawn sample and represents the entities sharing specific traits that researchers aim to 

understand and analyse. The target population in this study is solar installation companies that purchase 

products from distributors in South Africa. More specifically, solar installation companies subscribed to 

IBC SOLAR South Africa (Pty) Ltd.’s newsletter via Mailchimp by a double opt-in process. According to the 

Protection of Personal Information Act, they shop via their online portal and/or follow their social media 

pages, including Facebook and LinkedIn. Table 1.1 provides a summary of the size of the target population 

based on the mentioned platforms. The average reach across the platforms and the size of the target 

population for this study is 2 307. 

Concentrating on this population, the study sought insights, opinions, and emotions from individuals 

genuinely interested in the company’s products and who have consented to communication. This 

approach ensured data relevance and ethical data collection. The chosen target population was vital for 

addressing research questions and objectives, as these customers possess prior interactions, providing 

valuable insights into brand loyalty. 

Table 1.1: Target population 

Platform Subscribers Organic reach 

Mailchimp 1642 353 

Online shop 1850 558 

Facebook 4199 1910 

LinkedIn 3548 6408 

Total reach 9229 

Average reach 2307 

 

The sampling size was determined by using the historical evidence approach through a comparison of the 

sample sizes used in previous studies related to this study in combination with a sample size calculator 

(Khoza, Mafini and Okoumba 2022). The sample size is 330 based on the sample size calculator. This 

implies that to establish a 95% level of confidence that the actual value falls within a range of ± 5% of the 



 

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measured or surveyed value, 330 or more measurements or surveys would be required (Calculator.net 

n.d.). 

Furthermore, based on the data provided in Tabled 1.2 through the historical evidence approach, the 

anticipated sample size for this study is 390. This estimate is based on the sample sizes commonly used 

in similar previous research studies focused on BTL advertising and brand loyalty. Combining these two 

techniques, the average sample size for this study was determined to be 360 solar installation companies 

in South Africa. 

Table 1.2: Sample size 

Source Sample size 

Oh and Park (2020) 292 

Akoglu and Özbek (2022) 385 

Kwon, Jung, Choi and Kim (2021) 376 

Rachmawati, Suliyanto and Suroso (2022) 500 

Average 390 

 

1.10.6 Sampling 

Since this study did not have a sampling frame, it employed non-probability sampling, which relies on the 

researcher's judgment rather than equal chance (Zagheni and Weber 2015). This research specifically 

made use of convenience sampling. This technique involved selecting respondents from a population 

without ensuring equal chances for each individual to be included (Rashid et al. 2021). Furthermore, 

convenience sampling was chosen due to its efficiency in collecting data from readily available 

respondents, and its cost-effectiveness (Saunders et al. 2019; Obilor 2023). It was particularly suitable for 

this study due to the homogeneous nature of the target respondents, subscribers of IBC SOLAR’s various 

platforms. 

1.10.7 Data collection 

1.10.7.1 Secondary research data 

Secondary research data involves utilising existing information gathered and documented by other 

researchers or sources for purposes other than the current study. It entailed using data from sources such 

as high-impact published literature, reports, databases, and more to address research questions or gain 



 

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insights without collecting primary data (Hair, Risher, Sarstedt and Ringle 2019). To gather secondary data 

for this research, various sources such as research articles, books, and online platforms were employed. 

This information was utilised to perform a literature review, establish a theoretical framework and study 

background, and inform the design of the survey used for primary data collection. 

1.10.7.2 Primary research data 

Primary research data involved collecting original data from the target respondents (Taguchi 2018). To 

achieve this, a self-administered questionnaire based on existing literature was utilised. The survey was 

conducted among a minimum of 420 subscribers to IBC SOLAR’s communication platforms from June to 

September 2024. This approach allowed for the direct capture of insights and viewpoints from 

respondents (Bryman 2016). The questionnaire was digitally distributed using Mailchimp Software, the 

same platform IBC SOLAR currently employs for sending newsletters, banners in the online shop, and 

Facebook and LinkedIn posts. It was also digitally completed at events such as technical product training. 

To ensure participant relevance, a thorough cross-referencing process between the newsletter database 

and the company's business central software was conducted. Additionally, an official data collection 

authorisation was secured from the IBC SOLAR managing director to ensure compliance. 

1.10.7.3 Questionnaire design 

The first page of the survey clearly outlined the research objectives and emphasised respondents’ 

confidentiality and their right to withdraw at any point. This section also included informed consent 

information and screening questions to ensure the inclusion of customers who previously ordered from 

IBC SOLAR. Section A collected demographic information such as age, gender, years of experience in the 

solar industry, job title, geographic region, company size, the common brand installed, and frequency of 

purchasing from the brand. Section B assessed the impact of BTL advertising, competitive advantage, 

commitment, trust, and brand awareness on brand loyalty. A five and seven-point, strongly 

disagree/strongly agree, Likert scale was chosen for measurement in the survey due to its ability to 

provide nuanced and balanced responses. It allows respondents to express a wide range of opinions and 

attitudes, including neutral or ambivalent positions. This scale also aligns with psychometric principles 

and facilitates statistical analysis, making it a suitable choice for collecting data on various constructs and 

attitudes in survey research. Furthermore, to ensure robustness, multi-item measurement scales were 

used for each construct, addressing potential limitations associated with single-item measures (Hair, 



 

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Risher et al. 2019). All questionnaire items were adapted from existing literature to ensure content 

validity. 

Furthermore, a pilot study was conducted on a sample of 30–40 solar installation companies. They 

participated in the pilot study to validate and refine the research questionnaire. This preliminary phase 

was essential for testing the survey's clarity, assessing the time required for completion, and confirming 

the ethical considerations in obtaining informed consent and ensuring participant confidentiality (In 

2017). The pilot study addressed any potential issues or