Definitions

Dependent variable:
A dependent variable being the primary interest of the researcher is the main variable that is
being measured or tested in an experiment. The goal of the researcher is to understand and
describe the dependent variable or to explain/predict its variability. It is the effect and its value
depends on changes in the independent variable.
Independent variable:
Independent variable is one that influences the dependent variable in either a positive or negative
way. Any increase in the independent variable would also result in an increase or decrease in the
dependent variable. Any change in the dependent variable is accounted for by the independent
variable
Moderating variable:
Whenever the relationship between the independent variable and dependent variable becomes
contingent or dependent on another variable, we say that the third variable has a moderating
effect on the independent variable-dependent variable relationship. The variable that moderates
the relationship is known as the moderating variable, it has a strong contingent effect on the
independent variable-dependent variable relationship
Mediating variable:
The intervening variable surfaces between the time the independent variables start operating to
influence the dependent variable and the time their impact is felt on it. It serves as a path.

Theoretical framework (1):

1. Product features (arrow) advertising (arrow) customer loyalty

The dependent variable of customer loyalty has a relationship with product features being the
independent variable, in this situation advertising will be the moderator. The IV and DV are
interrelated as explained below.
To understand the relationship, the features of a product adversely impact a customer’s loyalty
with the product but a moderator is needed in between in order to strengthen the relationship
between the product features and customer loyalty. This relationship exists because advertising
being the moderator, will help the company to promote the features of the product to the target
audience. When the customer will be aware of their demands and wants being fulfilled through
those features, they will most likely purchase the product thus causing the customer to remain
loyal to the company’s products. This indicates that if a company were to introduce more
features then that would result in a positive reaction by the customers.

2. Product features (arrow) customer satisfaction (arrow) customer loyalty

The dependent variable of customer loyalty is influenced by product features being the
independent variable and customer satisfaction being the mediator. The IV and DV are
interrelated as explained below.
The features of a product adversely impact a customer’s loyalty with the product. To understand
this take the concept of how in order to maximize customer lifetime value, a company must not
only convince customers to buy its product or service once; it must also retain them. For a
company to achieve this, it needs to make sure it is aware of the wants and demands of its
customers. With the help of which it can introduce or provide such features that would make the
customer satisfied with the product, this satisfaction would be the mediator in this situation as it
is often used as a predictor of future customer purchases, which would turn into the customer’s
loyalty for the brand. The relationship would be positive if there would be any modifications in
the features of a product according to the demands of the customers which would in turn make
the customers satisfied with the product thus making them loyal to the product.