Investigating the impact of brand heritage and nostalgia on psychological brand ownership and consumer engagement with the mediating role of perceived brand authenticity

Introduction

In today's highly competitive markets, the constant emergence of new brands presents consumers ‎with significant challenges in distinguishing authentic brands. In this crowded environment, ‎perceived brand authenticity has become a key factor for differentiation and gaining customer ‎trust. This study investigates the impact of brand heritage and brand nostalgia on psychological ‎brand ownership and consumer engagement, with the mediating role of perceived brand ‎authenticity among customers of Golrang Industrial Group in Iran. Contemporary consumers seek ‎brands that embody real values, honesty, and a deep connection to their history and roots. Brand ‎heritage, comprising a brand's history, enduring values, and symbols developed over time, serves ‎as a crucial prerequisite for perceived authenticity. Similarly, brand nostalgia, as a powerful ‎emotional factor, evokes a sense of belonging to the past, enhancing emotional engagement with ‎the brand and reinforcing its perceived authenticity. When managed correctly, perceived ‎authenticity can lead to valuable psychological outcomes such as psychological brand ownership, ‎which refers to a consumer's feeling of possession towards a brand beyond physical ownership, ‎and increased consumer engagement, encompassing cognitive, emotional, and behavioral ‎interactions with the brand. Despite understanding its importance, significant research gaps ‎remain, particularly concerning the simultaneous examination of heritage and nostalgia as ‎antecedents to authenticity and their subsequent impact on psychological ownership and ‎engagement, especially in quantitative studies within emerging markets like Iran's Fast-Moving ‎Consumer Goods (FMCG) sector. This research aims to address these gaps by proposing and ‎testing a comprehensive model in the context of Golrang Industrial Group, a pioneering and long-‎standing Iranian brand facing intense competition and shifting consumer preferences‏.‏



Methodology

This research is applied in purpose and descriptive-survey in terms of data collection method. The ‎statistical population consisted of all customers and consumers of Golrang Industrial Group ‎products. Given that the population size exceeded one hundred thousand, it was considered ‎unlimited. Using the Krejcie and Morgan table, a sample of 384 individuals was selected via a simple ‎random sampling method. Data was collected using a questionnaire with confirmed validity ‎‎(content and construct) and reliability (Cronbach's alpha and composite reliability). The ‎measurement instruments were adapted from established scales: Brand Nostalgia and Brand ‎Heritage from Fritz et al. (2017), Psychological Brand Ownership from Pierce et al. (2001), Consumer ‎Engagement from Hollebeek et al. (2014) with its cognitive, emotional, and behavioral sub-‎dimensions, and Perceived Brand Authenticity from Morhart et al. (2015) with its continuity, ‎credibility, integrity, and symbolism sub-dimensions. The collected data were analyzed using ‎SmartPLS software version 4 and the Structural Equation Modeling (SEM) technique. Since the ‎Kolmogorov-Smirnov test results indicated that the data distribution was not normal, PLS-SEM was ‎deemed appropriate as it does not assume normal data distribution. The reliability and convergent ‎validity of the measurement model were confirmed, with Cronbach's alpha and composite ‎reliability values above 0.7 and Average Variance Extracted (AVE) values above 0.5 for all ‎constructs‏.‏



Discussion and Results

The findings indicated a positive and significant direct effect of both brand heritage and brand ‎nostalgia on psychological brand ownership, consumer engagement, and perceived brand ‎authenticity. The path coefficients and t-statistics for all direct relationships were statistically ‎significant at the 0.05 level. Furthermore, the analysis of the structural model and the examination ‎of specific indirect effects confirmed the mediating role of perceived brand authenticity in the ‎relationships between brand heritage and brand nostalgia with both psychological brand ‎ownership and consumer engagement. The overall model demonstrated a strong fit, with a ‎Goodness-of-Fit (GoF) index of 0.687, which exceeds the threshold of 0.36. The coefficient of ‎determination (R²) values for the dependent variables were 0.603 for perceived brand ‎authenticity, 0.797 for psychological brand ownership, and 0.880 for consumer engagement, ‎indicating that the independent variables and the mediator explain a substantial portion of the ‎variance in the outcome variables. Therefore, the main hypothesis and all ten sub-hypotheses of ‎the research were supported. This implies that heritage and nostalgia not only directly increase a ‎consumer's sense of belonging and engagement but also do so indirectly by enhancing the ‎perceived authenticity of the brand. For a heritage brand like Golrang, this underscores the ‎strategic importance of leveraging its historical legacy and evoking nostalgic sentiments to foster ‎deeper, more meaningful relationships with its customers‏.‏



Conclusion

This study concludes that brand heritage and nostalgia are significant antecedents that strengthen ‎psychological brand ownership and consumer engagement, both directly and through the pivotal ‎mediating mechanism of perceived brand authenticity. The results provide robust quantitative ‎evidence for a model that integrates historical and emotional factors with core consumer ‎psychological outcomes. For managers of heritage brands, particularly in competitive FMCG ‎markets like Iran, these findings highlight the necessity of strategically managing and ‎communicating the brand's heritage and nostalgic elements. It is suggested that brands such as ‎Golrang can enhance their market position by recreating their heritage and incorporating nostalgic ‎elements into advertising and packaging, thereby solidifying their authentic image in consumers' ‎minds. Practical recommendations include designing narrative campaigns based on brand history ‎and collective memories, creating interactive platforms for customer engagement, revitalizing ‎classic products, redesigning visual identity with historical symbols, and consistently highlighting the ‎brand's continuity and enduring values in all marketing communications. By doing so, brands can ‎effectively foster a stronger sense of psychological ownership and sustained engagement among ‎their consumers, leading to long-term loyalty and competitive advantage‏.‏