Local Product Branding Strategy in Building Consumer Loyalty in the Digital Era

Abstract

This study aims to analyze the influence of cultural proximity, local relevance, and emotional attachment on consumer loyalty, with digital engagement mediating the variables in the context of local products in the digital era. The rapid transformation of digital technology has reshaped how consumers interact with brands, requiring local branding strategies to adapt to the dynamics of digital behavior. A quantitative research approach was employed using a survey method involving 191 respondents who were consumers of roti Maros, a local bakery product from South Sulawesi Province. Data were analyzed using Structural Equation Modeling (SEM) with WarpPLS software to assess direct and indirect relationships among the studied variables. The findings reveal that cultural proximity significantly affects digital engagement but does not directly influence consumer loyalty. In contrast, local relevance and emotional attachment significantly positively affect digital engagement and consumer loyalty. The mediation test further indicates that cultural proximity and local relevance through digital engagement do not considerably affect loyalty, whereas emotional attachment mediated by digital engagement exerts a significant impact. The more frequent the interactions through digital media, the greater the likelihood of cultural values becoming blurred, driving consumer loyalty more by emotional factors than cultural closeness. From a managerial perspective, local business owners and brand developers are encouraged to integrate cultural identity and local narratives into their digital communication strategies while fostering authentic emotional experiences through online community engagement. Such efforts are essential to sustain consumer loyalty and strengthen the competitiveness of local brands in the digital economy.