Muneer Revised Thesis (10-10-23)

“Establishing and Deepening Brand Loyalty through Brand Experience and Customer
Engagement: Evidence from Karachi’s Chain Restaurants”.
A thesis submitted
By
Muneer Alam
To
Department of Business Administration
In the partial execution of the obligation for the
Degree of
MASTER OF BUSINESS ADMINISTRATION
In
Marketing
This thesis has been
Accepted by the faculty
FACULTY OF BUSINESS ADMINISTRATION
_____________________________________________
Ma’am Wajeeha Aslam
Advisor
_____________________________________________
IQRA University
Acknowledgement
Firstly, I would like to thank Almighty Allah for giving me the strength to complete my thesis. I
would also like to take this opportunity to express my gratitude to my teachers Ma’am Wajeeha
Aslam who have been inspirational in paving the way for this landmark by facilitating me
throughout the course. This research surely would not have been possible without their guidance,
direction and cooperation.
Additionally, I would also like to thank the Staff Members of Research Department for
supporting me in every single aspect of my research. I acknowledge the respondents for their
participation in the study whose valuable contribution was very precious and critical for this
thesis.
At the end, I convey my sincere gratitude to my family and to all who have been directly and
indirectly associated and endured with the project. All I remain is thankful!
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Table of Contents
Acknowledgement........................................................................................................................i
Abstract......................................................................................................................................iv
Chapter#1: Introduction............................................................................................................1
Chapter#1: Introduction............................................................................................................2
1.1 Background.......................................................................................................................2
1.2 Problem Statement...........................................................................................................3
1.3 Research Aim....................................................................................................................5
1.3 Research Objectives..............................................................................................................5
1.5 Research Questions...............................................................................................................5
1.6 Significance of the Study......................................................................................................5
1.7 Scope of the Study.................................................................................................................6
1.8 Organization of the Study....................................................................................................7
Chapter#2: Literature Review...................................................................................................9
2.1 Theoretical Background.......................................................................................................9
2.2 Literature Review.................................................................................................................9
2.3 Hypothesis Development....................................................................................................15
2.3.1 Sensory experience and customer engagement.............................................................15
2.3.2 Esthetical experience and customer engagement...........................................................17
2.3.3 Affective experience and customer engagement...........................................................19
2.3.4 Customer engagement and brand loyalty.......................................................................21
2.3.5 Cognitive style impact on behavioral and attitudinal loyalty........................................23
2.4 Conceptual Framework......................................................................................................25
Chapter#3: Research Methodology.........................................................................................27
Introduction:.............................................................................................................................27
3.1 Research approach.............................................................................................................27
ii
3.2 Research purpose................................................................................................................27
3.3 Research design...................................................................................................................28
3.4 Data source & instrumentation:........................................................................................28
3.5 Face and content validity...................................................................................................29
3.6 Target population...............................................................................................................30
3.7 Sample size...........................................................................................................................30
3.8 Sampling technique.............................................................................................................30
3.9 Statistical techniques for data analysis.............................................................................31
3.10 Ethical consideration........................................................................................................31
3.11 Summary of the chapter...................................................................................................32
Chapter#4: Data Analysis........................................................................................................34
4.1 Introduction:.......................................................................................................................34
4.2 Reliability (Pilot Study):.....................................................................................................34
4.3 Data Screening:...................................................................................................................35
4.3.1 Missing Values:.............................................................................................................35
4.3.2 Univariate and Multivariate Outliers:............................................................................36
4.4 Descriptive Analysis and Interpretations:.........................................................................36
4.5 Analysis:...............................................................................................................................38
4.5.1 Outer Model Measurement:...........................................................................................39
4.5.2 Inner model measurement and hypothesis testing:........................................................46
4.6 Discussion............................................................................................................................50
Chapter#5: Conclusion and Recommendation......................................................................53
5.1 Conclusion...........................................................................................................................53
5.2 Managerial and Theoretical Implications........................................................................56
5.3 Limitations and Future Recommendation.......................................................................57
References..................................................................................................................................59
iii
Appendix....................................................................................................................................67
Abstract
This quantitative research study investigates the relationship between brand experience,
customer engagement, and brand loyalty in Karachi's chain restaurants. In a highly competitive
market, brand loyalty has emerged as a crucial factor in sustaining business success.
Understanding the quantitative impact of brand experience and customer engagement on brand
loyalty provides actionable insights for restaurant chains aiming to cultivate a loyal customer
base. The study employs a cross-sectional survey design to collect data from a diverse sample of
customers visiting chain restaurants in Karachi. The survey instrument measures brand
experience, customer engagement levels, and brand loyalty through a well-validated and reliable
questionnaire. Respondents are asked to rate their perceptions of various restaurant attributes,
their engagement with the brand, and their likelihood of repeat visits and advocacy. Using
statistical analyses such as correlation and regression, the study quantifies the associations
between brand experience, customer engagement, and brand loyalty. It also explores the
mediating effect of customer engagement on the relationship between brand experience and
brand loyalty. The research findings reveal significant positive correlations between brand
experience, customer engagement, and brand loyalty. Customers who report positive brand
experiences are more likely to engage with the restaurant through loyalty programs, social media
interactions, and personalized communications, leading to higher levels of brand loyalty.
Moreover, the study identifies customer engagement as a significant mediator between brand
experience and brand loyalty. This suggests that a positive brand experience not only directly
influences brand loyalty but also does so indirectly through increased customer engagement. The
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results of this study have significant implications for chain restaurant managers and marketers in
Karachi, as well as the broader hospitality industry. By quantitatively understanding the impact
of brand experience and customer engagement on brand loyalty, restaurants can tailor their
strategies to optimize customer satisfaction, retention, and advocacy.
Keywords: Brand Loyalty, Brand Experience, Customer Engagement, Karachi’s Chain
Restaurant.
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Establishing and Deepening Brand Loyalty through Brand Experience and Customer 1
Engagement: Evidence from Karachi’s Chain Restaurants
Chapter#1: Introduction
Chapter#1: Introduction
1.1 Background
In the fiercely competitive landscape of the fast food industry, establishing and maintaining
brand loyalty has emerged as a critical objective for businesses worldwide (Ladhari, 2007). With
consumers faced with a plethora of choices, it has become imperative for fast food chain
restaurants to differentiate themselves beyond the mere quality of their offerings (Kotler et al.,
2002). This necessitates a strategic shift towards building robust brand experiences and fostering
active customer engagement (Pine and Gilmore, 1998). Karachi, as a bustling metropolis in
Pakistan, provides a dynamic backdrop for exploring the intricate relationship between brand
loyalty, brand experience, and customer engagement within this industry. The city's diverse and
discerning consumer base places significant emphasis not only on the taste and quality of food
but also on the overall experience associated with the brand (Akram and Jalees, 2013). This
dynamic environment is characterized by an evolving urban culture, where consumers seek not
only nourishment but an immersive experience that resonates with their lifestyles and values.
The fast food industry in Karachi has witnessed exponential growth over the past few decades,
mirroring global trends. The city now hosts a diverse array of international and local fast food
chains, ranging from global giants like McDonald's, KFC, and Pizza Hut to local favorites such
as OPTP, Nando's, and Student Biryani. This proliferation has not only transformed the culinary
landscape but also intensified competition, necessitating a strategic reevaluation of customer-
centric approaches. Brand loyalty, as defined by Ladhari (2007), encompasses the emotional,
psychological, and behavioral attachment that customers develop towards a particular brand,
leading to repeated patronage, positive word-of-mouth, and resistance to competitive offerings.

In a marketplace teeming with alternatives, cultivating brand loyalty becomes instrumental in
securing a dedicated customer base. This loyalty not only translates into higher revenue and
profitability but also acts as a buffer against market fluctuations and competitive pressures
(Kotler et al., 2002). Brand experience, according to Pine and Gilmore (1998), encapsulates the
entirety of a customer's interactions with a brand, encompassing every touchpoint from pre-
purchase to post-consumption. In the fast food context, this encompasses not only the taste and
quality of the food but also the ambiance, service, convenience, and any additional elements that
contribute to a memorable encounter. By orchestrating a seamless and gratifying experience, fast
food chains can forge deeper connections with their clientele, fostering brand loyalty. Customer
engagement, as highlighted by Kotler et al. (2002), involves active interactions and participation
between customers and the brand. It goes beyond mere transactions, encompassing elements
such as feedback, social media interactions, loyalty programs, and events. Effective engagement
initiatives can create a sense of community, empowerment, and belonging among customers,
further solidifying their allegiance to the brand.
1.2 Problem Statement
In the dynamic and competitive market of Karachi, Pakistan, building and maintaining brand
loyalty has emerged as a pivotal goal for businesses, particularly within the thriving chain
restaurant industry. Despite the acknowledged significance of brand experience, there exists a
noticeable gap in research that comprehensively examines its impact on customer loyalty in this
context. While existing studies offer valuable insights, they often lack depth in understanding the
nuanced factors contributing to brand experience (Keller, 2013; Schmitt, 1999). Additionally, the
diverse consumer base in Karachi, spanning various socio-economic backgrounds, presents a
unique challenge in crafting effective customer engagement strategies. Research on customer

engagement within the local context is scarce, necessitating a focused investigation into the
specific dynamics at play within Karachi's chain restaurant industry (Verhoef et al., 2010; So et
al., 2013). Moreover, with the rapid integration of digital platforms and technological
advancements, there is a pressing need to explore how these innovations influence customer-
brand interactions and, consequently, brand loyalty in the local market (PwC, 2019; Frow et al.,
2016).
Karachi's cosmopolitan environment, characterized by its rich tapestry of cultures, languages,
and traditions, introduces an additional layer of complexity in brand loyalty formation.
Understanding the role of cross-cultural sensitivities in this process is imperative for crafting
strategies that resonate with the diverse consumer segments prevalent in the city (Usunier & Lee,
2009; Vigneron & Johnson, 2004). Finally, while establishing brand loyalty is a strategic
imperative, its translation into tangible business outcomes remains a subject of ongoing inquiry.
Delving into the connection between brand loyalty, customer retention, and the financial
performance of chain restaurants in Karachi will provide invaluable insights for both
practitioners and researchers alike (Reichheld, 2003; Rust et al., 2004). By addressing these
critical gaps in the existing literature, this research endeavors to offer a comprehensive
understanding of how brand experience and customer engagement strategies can be effectively
leveraged to establish and deepen brand loyalty within Karachi’s chain restaurant industry. The
findings of this study hold the potential to not only inform the strategies of local businesses but
also contribute to the broader discourse on brand management in diverse and dynamic market
contexts.
1.3 Research Aim
The aim of this research is to examine the role of brand experience and customer engagement in
establishing and deepening brand loyalty within the context of chain restaurants. The study seeks
to investigate how chain restaurant operators can create meaningful and memorable brand
experiences that foster active customer engagement, leading to long-term brand loyalty. By
exploring these connections, the research aims to provide valuable insights and actionable
recommendations to enhance customer relationships, brand loyalty, and overall business success
for chain restaurants.
1.3 Research Objectives
The main aim of this study is:
 To identify the association between the brand loyalty and customers engagement
 To examine the impact of brand loyalty on the restaurant chain
 To examine the impact on brand experience on customer engagement.
1.5 Research Questions
The research questions of this study are:
 What is the relationship between brand loyalty and customer engagement?
 What is the impact of brand loyalty on restaurant chain?
 What is the impact of brand experience on customer engagement?
1.6 Significance of the Study
The primary objective of this research is to build upon the existing studies in brand management
that have focused on customer engagement as a multi-dimensional construct, as discussed by

Dessart et al. (2015) and So et al. (2014). Specifically, Hollebeek et al. (2014) have identified
three dimensions of customer engagement: cognitive (related to interest in using the integrated
resort brand), affective (concerning feelings or expressions towards the integrated resort brand),
and behavioral (relating to behaviors associated with the integrated resort brand). This research
aims to explore and identify potential antecedents and outcomes of these three dimensions of
customer engagement. In this study, the researchers have categorized the majority of customers'
experiences with the integrated resort brand, including sensory, affective, behavioral, and
intellectual engagements, to form a comprehensive concept of customer brand engagement. By
delving into these aspects, the study seeks to enhance our understanding of customer engagement
in the context of brand management and contribute valuable insights to the field.
1.7 Scope of the Study
The study "Establishing and Deepening Brand Loyalty through Brand Experience and Customer
Engagement: Evidence from Karachi’s Chain Restaurants" is delimited to the dynamic landscape
of Karachi's chain restaurant industry. Specifically, the research aims to investigate the intricate
interplay between brand experience, customer engagement, and brand loyalty within this unique
market. The geographical focus centers exclusively on Karachi, Pakistan, where a diverse array
of international and local chain restaurants operate, were catering to a wide range of consumer
preferences. By concentrating on this specific locale, the study seeks to offer insights that are
particularly relevant to the local market dynamics and consumer behaviors prevalent in Karachi.
This geographic scope allows for a comprehensive examination of the factors influencing brand
loyalty in a highly competitive urban environment. Consequently, the study contributes to a
deeper understanding of how chain restaurants in Karachi can strategically enhance their brand
experiences and customer engagement initiatives to foster lasting customer loyalty in this
bustling metropolis.
1.8 Organization of the Study
This current research will be summarized in five chapters. The first chapter will highlight the
introduction of the research, whereas the second chapter highlights the literature review,
conceptual framework and hypothesis. The third chapter will teach the methodology of this
research. The fourth chapter highlights the analysis of the overall data and the last chapter
highlights the conclusion and recommendation of this research. will include total of five
chapters.
Chapter#2: Literature Review

Chapter#2: Literature Review
2.1 Theoretical Background
Brand Resonance Theory, developed by marketing scholar Kevin Lane Keller, is a conceptual
framework that illustrates the various stages of brand development and the dynamic relationship
between consumers and a brand. The model is represented by the Brand Resonance Pyramid,
which comprises four distinct levels. The foundational level is "Identity," emphasizing brand
awareness and recognition as essential prerequisites for meaningful connections. Moving up the
pyramid, the "Meaning" level encompasses brand attributes and benefits, shaping consumers'
perceptions and attitudes. The subsequent level, "Response," signifies favorable consumer
reactions and preferences, leading to increased brand loyalty and repeat purchases. Finally, at the
pinnacle of the pyramid, "Resonance" epitomizes the deepest level of brand engagement, where
consumers forge strong emotional bonds, resulting in unwavering loyalty, advocacy, and a sense
of belonging. Brands that achieve resonance benefit from heightened customer retention, positive
word-of-mouth, and increased brand advocacy. To attain brand resonance, marketers must
comprehend their target audience, deliver consistent and relevant brand experiences, and
establish meaningful relationships that transcend functional benefits, connecting with customers
on a profound emotional level. Such endeavors cultivate a loyal customer base, serving as a
crucial asset in achieving long-term success and gaining a competitive edge in the market.
2.2 Literature Review
Atulkar (2019) investigates the impact of brand trust and loyalty among Indian mall customers.
The findings of the study basis were emotional connection, which contributes to brand loyalty
and trust. SEM technique was used in this research to test the hypothesis, and Smart PLS 2.0
software was used to analyze the data by taking 332 responses from those respondents who have
experience shopping at the mall. The targeted audience is those 10 to 30 years who purchase
branded things from the mall. According to the study, brand loyalty significantly impacts brand
trust and does not directly affect emotional connection. Moreover, this study also suggested that
other factors like buying patterns paying capacity, and lifestyle will be used for further research.
The moderating role of brand loyalty was the focus of a study by Bicakcioglu et al. published
under the heading “Antecedents and Consequences of Brand Loyalty”. A survey was used as a
data-gathering instrument to examine the framework and hypothesis with a sample of 361
Turkish consumers. The methodology of a structure-based equation model was used to evaluate
the hypothesis. The study's findings show a high correlation between brand loyalty and
behavioral outcomes built on experience and non-experience. Additionally, this research
demonstrates the mediating function of brand loyalty and the impact of brand loyalty on the
positive statement. Since such factors were not previously included, brand loyalty and
encouraging word of mouth may be used in future research.
The implications of brand loyalty and recognition in Tapie City, Taiwan, are analyzed by Chang
(2020). The data is collected from 225 respondents by using a questionnaire. In this study, a
structural equation design was adopted in combination with exploratory factor analysis. The
research finding emphasizes that experimental marketing could not directly affect brand loyalty,
while the use of brand analytics served as a connection between brand loyalty and brand vision;
the researcher also discovered that social marketing strategy significantly impacted both of these
metrics. The researcher also considered different research settings while doing this study.
Ebrahim (2019) highlighted that trustworthiness is essential for understanding how social media
advertising affects brand loyalty and perception. The study was conducted in Egypt using a
questionnaire to collect the data. The data is collected from 287 participants for non-probability
sampling techniques Estimation techniques are used to analyze the result of the hypothesis.
According to the findings, social media advertising initiatives significantly impact brand loyalty
and secondarily influence the brand's equity. Further researchers should use other geographical
locations for further research and determine how social media advertising initiatives influence
negative word-of-mouth.
According to Fernandes and Moreira (2019), brand loyalty, customer experience, and customer
interaction are all examined. This study focuses on the relationship between functional and
emotional brand relations. The study's objective is to highlight the distinction between CBE and
BL. This data was collected from 655 respondents, of which 320 respondents were for the
available brand while another consumer was the emotional brand. Throughout this study, the
hypothesis was evaluated using a structural equation model technique, and AMOS was
implemented. The finding of the research shows that consumer brand engagement has 3
dimensions.While widely accessible brands indirectly impact brand equity, solid emotional
engagement has a direct impact.
Using complexity theory approaches, Foroudi et al. (2019) analyze the regular and irregular
ways to brand loyalty and brand intention to buy. This research needed to discern how using a
brand-marketing strategy could enhance market potential. The mixed method was used in this
research. With the assistance of 308 participants, a structured questionnaire was used to gather
data in Mexico once a preliminary interview had been conducted to explore the connection
between the various aspects of brand perception. Fuzzy-set Data analysis techniques included
comprehensive qualitative evaluation. The finding demonstrates how branding is worth
understanding consumer brand loyalty and consumer buying behavior.
The influence of sales marketing and brand loyalty on the brand awareness was explored by
Joseph et al. in 2020. This experimental investigation aims to understand how consumers feel
about sticking with certain companies. The conceptual framework is explained in terms of extent
theory. To investigate the formulated hypotheses, 147 Indian volunteers were randomly selected
as a sample. The information is gathered using a survey. This research investigates the
hypothesis using a method called structural equation modeling. The result confirms that using
short-term promotions increased brand equity and brand loyalty. The finding suggests that
competitive actions and split loyalty should use for further research.
In their 2019 study, Kaur et al. examined the impression of official brand recognition on the
customer brand engagement and loyalty in digital communities for brands. They focused on the
importance of the virtual brand community; for this, they collected data from 602 Facebook
users using a survey questionnaire. Structural equation modeling techniques were used in this
research to examine the hypothesis. The research results show that virtual community increases
brand attachment in the consumers’ minds.
Kim et al,m (2020) studied the impact of celebrity on brand knowledge, the quality received, and
brand image on brand loyalty to a literacy festival in the USA. This study shows that celebrity
endorsement impacts destination brand and festival community attachment. The data was
collected from 405 consumers in the fashion retail industry in the US market by using an online
survey. The statistical analyses were performed using a structure-based equation model. The
findings demonstrate how celebrity endorsement significantly impacts brand perception and
customer retention, which may increase the brand image. Further research uses other influential
factors such as functions, roles, and attributes of celebrity endorsement.
Kwon et al. (2020) examine the factors that directly impact brand loyalty and brand trust in the
restaurant industry. This study was conducted on USA and Korean consumers. The study
investigates how marketing influences consumers' perceptions of a brand and their willingness to
stick with it. The total number of participants is 606, of which 230 consumers were taken from
the US, while 376 respondents were taken from the Korean market. They examined the
hypothesis; they used the structural equation model technique. According to the study, brand
trust and brand loyalty are directly impacted by advertisements if they are tied to the brand's
competence and serve to boost these two metrics.
Liu et al. (2020) investigated the link between brand loyalty and popular destinations and the
impact of brand recognition on the sense of place. It works on the variable product brand,
authenticity, affective place image, culture distance, affective place, product brand image, and
loyalty. They used confirmatory factor analysis to test the variable through which they found out
that Brand loyalty depicts a central figure with a commitment to a spot and an expressive
presence. The research conceptualizes and factually displays the sign's existence, connections,
and significance. It worsens consideration for brand-place concerns and acknowledges necessary
limit circumstances. In order to strengthen spot links, tour operators must effectively handle
perceptions of local companies' actuality and consider heritage sites while creating destination
marketing.
The relationship between brand loyalty and the brand experience was found by Mostafa (2019).
The association between the brand experience and brand loyalty is explored in this experiment.
This research was done in Labuan, and data was gathered with the participation of 278 clients
using a questionnaire as an essential tool. The hypothesis was tested using mediation analysis to
generate the required outcomes. The report's findings demonstrate that brand intensity,
connection, and attachment strongly influenced sustained brand loyalty. In a recent study, brand
awareness, loyalty, and diverse geographic locations should all be considered.
On the other hand, a 2017's study examined the effect of customer brand image on customer
loyalty to the hotel sector. This research evaluated brand recognition and brand loyalty using
cross-sectional data. 345 Indian consumers assisted in gathering this research. The theory was
evaluated using techniques for structural equation modeling. The study's results demonstrate that
brand identity directly affects brand loyalty. To accomplish the desired outcome, future studies
should explore the implications of the brand personalization on brand loyalty by utilizing data
from many geographical regions.
Social media customization's impact on boosting brand loyalty and value perception in the
United States of America was examined by Shanahan et al. in 2019. This research demonstrates
how customized social media ads influence how consumers perceive a brand. Two hundred
forty-two individuals took part in an online poll that was used to gather these statistics. The data
analysis method employed was the structural modeling approach. The findings demonstrate that
quality affects customer brand engagement and brand attachment in a constructive way.
In their study, Li et al. (2020) highlight the associations between consumer engagement and
brand loyalty in the tourism industry and the linkage between brand attachment and brand equity
in Taiwan's social media sites.. It demonstrates the connections between consumer interaction,
brand association, consumer loyalty, and brand loyalty—data. Two hundred ninety-eight
participants are gathered. They do convergent and discriminant validity analyses to ensure that
brand partnerships' perceptual stages adequately address the emotional one's behavioral aims.
Although trust has no immediate impact, the emotional component of brand relationships
substantially impacts pricing lenience. Along with suggestions for additional research,
managerial implications are highlighted.
According to Yoshida (2018), there is a contradiction between Japanese customers' brand loyalty
and their use of social media. The theoretical foundation of the structure was supported by social
branding and customer interaction theory. This research investigates the connection between
Japanese licensed sports brand recognition and customer reactions on the social media platforms.
The data was gathered from 309 clubs in Japan using an online survey. Based on the findings,
social media sites' entertainment value directly influences online consumer brand recognition and
positively influences brand related social media activity. Future studies ought to investigate the
gap between brand awareness and brand loyalty using brand identity and team recognition.
2.3 Hypothesis Development
2.3.1 Sensory experience and customer engagement
The hypothesis posits that delivering a positive and immersive sensory experience to customers
can have a significant impact on customer engagement, satisfaction, and brand loyalty. A study
conducted by Spence and Piqueras-Fiszman (2014) provides empirical support to this idea by
shedding light on the pivotal role of sensory experiences in consumer behavior. Their research
demonstrates that when customers are exposed to multisensory stimuli, such as appealing
visuals, pleasant aromas, and soothing music, their overall engagement with the product or
service is substantially heightened. The combination of various sensory cues triggers a more
profound emotional response, making the experience more memorable and enjoyable. As a
consequence, customers develop a stronger positive perception of the brand, resulting in higher
levels of satisfaction with their purchase decisions. Moreover, this positive emotional connection
cultivated through sensory experiences fosters a sense of loyalty towards the brand, making
customers more likely to repeat their purchases and recommend the brand to others. In essence,
businesses that prioritize and excel in creating sensory-rich experiences stand to gain a
competitive advantage in an increasingly crowded marketplace by establishing lasting
connections with their customers, leading to long-term customer loyalty and advocacy. Sensory
experience and cognitive style are two factors that can influence how people process
information. Cognitive style refers to an individual's preferred way of processing information,
while sensory experience refers to the way in which an individual experiences the world through
their senses, such as vision, hearing, touch, taste, and smell. Cognitive style can be divided into
two main categories: visual and verbal. People with a more visual cognitive style tend to rely on
visual cues when processing information, while people with a more verbal cognitive style tend to
rely on language-based cues. For example, a visual thinker might prefer to use diagrams, charts,
and images to understand information, while a verbal thinker might prefer to use written or
spoken language. Research has shown that cognitive style can influence how people learn, solve
problems, and make decisions. Sensory experience can also influence cognitive style. For
example, people with hearing or vision impairments may have different cognitive styles than
people without these impairments. People with hearing impairments may rely more on visual
cues when processing information, while people with vision impairments may rely more on
auditory cues. Research has also shown that people who are bilingual or multilingual may have
different cognitive styles than people who speak only one language. One way in which sensory
experience and cognitive style can be studied is through the use of cognitive tests. These tests are
designed to measure an individual's cognitive abilities, such as memory, attention, and problem-
solving. Researchers can use these tests to compare the cognitive abilities of people with
different sensory experiences and cognitive styles. Another way in which sensory experience and
cognitive style can be studied is through the use of brain imaging techniques. These techniques
allow researchers to observe the activity of the brain while an individual is performing cognitive
tasks. By comparing the brain activity of people with different sensory experiences and cognitive
styles, researchers can gain insights into how sensory experience and cognitive style influence
cognitive processing, the following hypotheses are proposed:
H1: Sensory experience has a significant impact on cognitive engagement.
H2: Sensory experience has significant impact on emotional engagement.
H3: Sensory experience has a significant impact on cognitive style.
2.3.2 Esthetical experience and customer engagement
The proposed hypothesis posits that a positive esthetical experience has a significant impact on
customer engagement with a brand. Esthetical experiences evoke positive emotions, such as joy
and satisfaction, leading to a deeper emotional connection between customers and the brand.
According to the affective system model (Havlena and Holbrook, 1986), these positive emotions
are likely to result in increased customer engagement as individuals are more willing to interact
with a brand that elicits positive feelings. Moreover, esthetical experiences stimulate cognitive
processing due to their novelty and attractiveness, resulting in better memory encoding and
retrieval. Customers are more likely to remember and recall brands that provided them with
memorable esthetical experiences, leading to heightened brand engagement and positive word-
of-mouth promotion (Babin and Attaway, 2000).

In today's competitive market, differentiation is vital for a brand's success. Aesthetically pleasing
products, websites, packaging, or physical stores can serve as a competitive advantage by setting
a brand apart from its competitors (Bloch et al., 2003). The distinctive nature of esthetical
experiences can attract and retain customers, driving increased customer engagement and brand
loyalty. Furthermore, esthetical experiences have a social dimension. Customers tend to share
their positive experiences on social media platforms and among their peers. The viral nature of
these experiences can significantly impact customer engagement and expand the brand's reach
through word-of-mouth marketing (Cheung et al., 2018) The relationship between esthetical
experience and cognitive style is a complex and multifaceted area of research. One hypothesis is
that people with a more visual cognitive style may be more likely to have a strong esthetical
experience when viewing visual art, while people with a more verbal cognitive style may be
more likely to have a strong esthetical experience when reading literature or listening to music.
However, this hypothesis is still being explored and more research is needed to fully understand
the relationship between esthetical experience and cognitive style. One study that investigated
the relationship between cognitive style and esthetical experience found that people with a more
visual cognitive style were more likely to have a strong esthetical experience when viewing
visual art. The study used the Group Embedded Figures Test (GEFT) to measure cognitive style
and the Esthetic Experience Scale (EES) to measure esthetical experience. The GEFT measures
an individual's ability to identify a simple shape within a complex figure, which is thought to be
an indicator of cognitive style. The EES measures an individual's subjective experience of
esthetic pleasure when viewing art. The results of the study showed that people with a more
visual cognitive style had a stronger esthetical experience when viewing visual art than people
with a more verbal cognitive style. The researchers suggested that this may be because people
with a more visual cognitive style are better able to process the visual elements of art, such as
color, shape, and texture. However, the study did not investigate the relationship between
cognitive style and esthetical experience for other types of esthetical experiences. Based on the
rationales and results, this study proposes the following hypotheses:
H4: Esthetical experience has a significant impact on cognitive engagement.
H5: Esthetical experience has a significant impact on emotional engagement.
H6: Esthetical experience has a significant impact on cognitive style.
2.3.3 Affective experience and customer engagement
From a managerial perspective, the interactions between restaurant staff and customers, as well
as the operational procedures in the establishment, are crucial for creating a pleasant and
comfortable dining experience. Previous research in restaurant settings has emphasized the
importance of emotional elements in influencing customers' psychological responses, particularly
their satisfaction levels. It highlights how customers' perceptions of the restaurant environment
significantly impact their emotional states. Wakefield and Blodgett (1999) suggest that tangible
aspects of the service environment, such as the physical ambiance and facilities, also play a role
in influencing customer responses, including their excitement and likelihood of returning to the
restaurant.
The theoretical framework of the affective-cognition-behavioral (A-C-B) model proposed by
Breckler (1984), Holbrook, and Batra (1987), and Solomon (2014) provides insight into how
consumers' cognition can be influenced by both internal and external emotional stimuli. In other
words, a customer's emotional experiences can affect their cognitive processes, which, in turn,
can influence their behavior and actions. This study aims to build on the A-C-B model and
related research to explore how affective experiences impact customer engagement. Customer
engagement refers to the level of involvement and interaction customers have with a brand or
business. The study seeks to investigate how affective experiences (both cognitive and
emotional) interact with customers' cognitive styles, which are individual differences in how
people perceive and process information, to influence their level of engagement with a
restaurant. Understanding the relationship between affective experiences, cognitive styles, and
customer engagement can provide valuable insights for restaurant managers. By creating positive
and emotionally enriching experiences for diners, restaurants can potentially enhance customer
engagement, leading to increased satisfaction, loyalty, and positive word-of-mouth.
The relationship between affective experiences and cognitive styles in marketing is an essential
area of research. One hypothesis is that individuals with a more analytical cognitive style may
respond more positively to marketing messages based on logic and reason, while those with a
more intuitive cognitive style may respond better to messages based on emotion and feeling.
Studies have shown that people with different cognitive styles react differently to marketing
messages that appeal to various types of affective experiences. For example, research by Lee and
Labroo (2004) found that people with an analytical cognitive style had a more positive attitude
toward advertising messages based on logic and reason, while those with an intuitive cognitive
style responded more favorably to messages based on emotion and feeling. The study used the
Need for Cognition Scale (NCS) to measure cognitive style and the Attitude Toward the Ad
(Aad) Scale to measure affective experience.
Another study by Lee and Labroo (2011) discovered that people with different cognitive styles
respond differently to marketing messages designed to elicit various types of affective
experiences. The study used the Regulatory Focus Theory to measure cognitive style and the
Attitude toward the Ad Scale to measure affective experience. The results revealed that people
with a more promotion-focused cognitive style responded positively to messages designed to
evoke positive affective experiences, such as happiness and excitement, while those with a more
prevention-focused cognitive style responded positively to messages designed to evoke negative
affective experiences, such as fear and anxiety. The researchers suggested that these findings
may be attributed to the fact that individuals with a more analytical cognitive style process
information in a systematic and logical manner, while those with a more intuitive cognitive style
rely on their feelings and emotions when making decisions. Similarly, individuals with a
promotion-focused cognitive style may be motivated by positive outcomes, whereas those with a
prevention-focused cognitive style may be more motivated by avoiding negative outcomes.
H7: Affective experience has a significant impact on cognitive engagement.
H8: Affective experience has a significant impact on emotional engagement.
H9: Affective experience has a significant impact on cognitive style.
2.3.4 Customer engagement and brand loyalty
Customer engagement refers to the active involvement, interaction, and emotional connection
that customers establish with a brand. It includes various aspects such as online interactions,
social media engagement, customer service experiences, and participation in loyalty programs.
On the other hand, brand loyalty represents the extent to which customers consistently prefer a
particular brand over its competitors. Loyal customers frequently make repeat purchases,
recommend the brand to others, and are less likely to switch to alternative products or services.
Higher levels of customer engagement are expected to lead to improved brand recall, increased
brand awareness, and more positive brand perceptions. Engaged customers feel valued by the
brand, leading to increased trust and satisfaction. This emotional connection and sense of
affiliation can further strengthen customer loyalty.
The results of this research will offer valuable insights to marketers and brand strategists, helping
them develop effective customer engagement strategies to foster brand loyalty and build long-
term customer relationships. Understanding the relationship between customer engagement and
brand loyalty is crucial in today's competitive marketplace, where establishing strong customer-
brand connections is essential for business success (Fournier et al., 2015). Previous studies have
identified various cognitive factors, such as trust and identification, and their positive impact on
outcomes like revisit intention and attitudinal loyalty. These studies highlight the positive
influence of the service environment on customers' willingness to revisit and recommend
(Wakefield & Blodgett, 1999), the significant roles of service quality and pleasure in shaping
consumer revisit intention (Kim and Moon, 2009), and the favorable impact of affection and trust
on customer loyalty (La & Choi, 2012). Building on these findings, this study further explores
the underlying principles and proposes that cognitive engagement positively influences brand
loyalty, encompassing both behavioral and attitudinal aspects
H10: Cognitive engagement has a significant impact on behavioral loyalty.
H11: Cognitive engagement has a significant impact on attitudinal loyalty.
From a buying behavior perspective, an engaged consumer is one who actively participates in the
entire consumption process and pays keen attention to every aspect of their experience with a
product or service. This high level of involvement increases the likelihood that the consumer will
return for future purchases or engagements. Existing research has identified emotional factors as
crucial drivers of consumer behavior and loyalty. These emotional factors include involvement,
attachment, love, as well as behavioral and attitudinal loyalty. In other words, when consumers
feel emotionally connected to a brand or product, they are more likely to exhibit loyalty in their
behaviors and attitudes towards that brand. Bahri-Ammari et al. (2016) have specifically
highlighted the significance of emotional attachment in fostering brand loyalty within luxury
restaurant contexts. In such settings, customers' emotional connections to the restaurant can
greatly influence their loyalty and likelihood to revisit. Similarly, Mattila (2001) has emphasized
the importance of emotional bonds in building restaurant loyalty. When customers develop
emotional connections with a restaurant, they are more likely to become loyal patrons and
advocate for the restaurant through positive word-of-mouth. Combining insights from consumer
psychology and existing findings, this study proposes the following hypotheses:
H12: Emotional engagement has a significant impact on behavioral loyalty.
H13: Emotional engagement has a significant impact on attitudinal loyalty.
2.3.5 Cognitive style impact on behavioral and attitudinal loyalty
Cognitive style is a psychological construct that refers to an individual's preferred way of
processing information. It is an important factor to consider in marketing because it can impact
how consumers respond to marketing messages and how they form attitudes toward brands. In
this essay, we will explore the relationship between cognitive style and behavioral and attitudinal
loyalty in marketing. Behavioral loyalty refers to the degree to which a consumer is willing to
purchase a brand repeatedly over time. Attitudinal loyalty refers to the degree to which a
consumer has a positive attitude toward a brand. Both types of loyalty are important for brands
because they can lead to increased sales and long-term profitability. Research has shown that
cognitive style can impact both behavioral and attitudinal loyalty. For example, a study by Lee
and Labroo (2004) found that people with a more analytical cognitive style were more likely to
have a high level of behavioral loyalty to a brand when they perceived the brand as being high in
quality. In contrast, people with a more intuitive cognitive style were more likely to have a high
level of behavioral loyalty to a brand when they perceived the brand as being emotionally
appealing. The study used the Need for Cognition Scale (NCS) to measure cognitive style and
the Brand Loyalty Scale (BLS) to measure behavioral loyalty. The NCS measures an individual's
preference for engaging in effortful cognitive tasks, while the BLS measures an individual's level
of behavioral loyalty to a brand. The results of the study showed that people with a more
analytical cognitive style had a higher level of behavioral loyalty to a brand when they perceived
the brand as being high in quality. This may be because people with a more analytical cognitive
style are more likely to process information in a systematic and logical way, and they may be
more likely to evaluate the quality of a brand based on objective criteria. In contrast, people with
a more intuitive cognitive style had a higher level of behavioral loyalty to a brand when they
perceived the brand as being emotionally appealing. This may be because people with a more
intuitive cognitive style are more likely to rely on their feelings and emotions when making
decisions, and they may be more likely to form an emotional attachment to a brand that they
perceive as being emotionally appealing. Another study by Lee and Labroo (2011) found that
cognitive style can impact attitudinal loyalty to a brand. The study used the Regulatory Focus
Theory to measure cognitive style and the Attitude towards the Brand (Atb) Scale to measure
attitudinal loyalty. Therefore, it can be hypothesized that:
“H14: Cognitive style has a significant impact on Behavioral loyalty.
H15: Cognitive style has a significant impact on attitudinal loyalty.”

2.4 Conceptual Framework

Chapter#3: Research
Methodology
Chapter#3: Research Methodology
Introduction:
This includes all of the writing, including all of the research readily available for the principally
based as well as pertinent variables, together with the conjecture, which was addressed, along
with a portion of the ongoing chapter. Based on the previous chapter, this chapter has described
the research paradigm for the current investigation. This chapter includes descriptions of the
population, sample procedure, design, and research methodology. The usage of the questionnaire
from earlier studies has also been looked into.
3.1 Research approach
Qualitative research and quantitative research are the two types of research that are most
frequently used globally. The current study employs the quantitative research methodology.
Quantitative research makes mathematical model building and application possible. The
statistical conclusions are obtained by data analysis. The theories and hypotheses are put to the
test using statistical techniques. The correlations between the variables are examined in the
current study using a quantitative method. The Smart PLS is used to analyze the data.
3.2 Research purpose
In explanatory research, the primary goal is to identify and understand the causal relationships
between variables. It goes beyond just describing a situation (descriptive research) or exploring a
topic without predetermined hypotheses (exploratory research). Instead, explanatory research
involves the formulation of specific hypotheses and uses statistical analysis to test these
hypotheses. Researchers conducting explanatory research seek to determine how one variable
influences or affects another variable. They use different methods to control for confounding
variables and establish causality. Some common statistical approaches used in explanatory
research include regression analysis, experimental studies, and quasi-experimental designs.
Explanatory research is particularly useful when there is a need to understand the reasons behind
a certain phenomenon or when trying to identify the underlying mechanisms that explain
observed relationships between variables.
3.3 Research design
The current study employs a co-relational design. The correlational design can be used to
quantify and analyze the statistical relationship between two variables. The correlations between
the variables can be high or weak, positive or negative, or they could even be completely absent.
The research assesses how strongly the independent and dependent variables are correlated
(Bordens& Abbott, 2002).
3.4 Data source & instrumentation:
The basic data were utilised for this study. Primary data is information that the researcher
gathers directly from sources. The data was collected from different restaurants in Karachi. The
majority of the data was gathered in Karachi. The questionnaire was created to collect the data.
The apparatus includes citations to the various sources from which the questionnaire was
adapted.
Data Source Instrumentation
Sensory Experience (Huang & Chen, 2022)
Aesthetical Experience (Huang & Chen, 2022)

Affective Experience (Huang & Chen, 2022)
Cognitive Engagement (Huang & Chen, 2022)
Emotional (Huang & Chen, 2022)
Engagement
Behavioral Loyalty (Huang & Chen, 2022)
Attitudinal Loyalty (Huang & Chen, 2022)
Cognitive Style (Huang & Chen, 2022)
3.5 Face and content validity
Validating the survey questionnaire is a crucial aspect essential for the successful execution of
research (Tan et al., 1999). Achieving validity, in particular, can be a challenging endeavor
(Neuman, 2007). In this study, the questionnaire underwent a rigorous process of content
validation and reliability assurance. The survey was first discussed with experts in human
resource management to ensure its relevance and appropriateness. Following expert feedback,
necessary improvements were made. Subsequently, a pilot study was conducted to enhance the
questionnaire's clarity and precision based on participant feedback. Finally, the refined
questionnaire was administered to consumers for data collection purposes. This meticulous
validation process increases the likelihood that the questionnaire yields valid and reliable data,
thereby enhancing the overall quality of the research. It's worth emphasizing that ensuring
validity and reliability is an ongoing endeavor, necessitating continual review and refinement of
the questionnaire throughout the research process.
3.6 Target population
For this research study, the focus is on consumers, and the target population comprises
individuals residing in Karachi, Pakistan. The respondents for the study were selected from
various locations across Karachi, representing a diverse group of consumers. The specific target
locations for data collection were restaurants situated in Karachi.
3.7 Sample size
According to Tabachnick and Fidell (2007), the recommended sample size should be 50 + 8m,
where 'm' represents the number of latent variables in the research. Based on this guideline, the
sample size for the current research would be 250 respondents, considering the number of latent
variables in the study. On the other hand, Hair et al. (2012) propose a thumb rule for the
minimum sample size, which is 10(n), where 'n' represents the number of paths in both the outer
and inner model. Following this guideline, the minimum sample size for the current research
should be 200 respondents, considering the number of paths in the research model.
3.8 Sampling technique
Researchers employ two different kinds of sampling techniques: probability sampling and non-
probability sampling. Data for the current investigation were gathered using a non-probability
sampling method. The purposive sample with non-probability was chosen for the study. With the
aid of purposive sampling, the researcher can pick an easy-to-reach subject (Kothari, 2004, p.
15). It is the easiest and quickest approach.

3.9 Statistical techniques for data analysis
In this study, the data underwent analysis using various statistical techniques. Firstly, SPSS
(Statistical Package for the Social Sciences) was employed for data screening, which involved
identifying missing data and eliminating multivariate and univariate outliers. These procedures
acted as a means of purging contaminants from the dataset. After addressing data quality issues,
the cleaned data was further examined using Smart PLS 3.2.7 for hypothesis testing. Partial
Least Squares Structural Equation Modeling (PLS SEM) was the chosen analysis methodology.
PLS SEM has become increasingly popular in marketing research studies (Hair et al., 2011) due
to its capability of handling small sample sizes effectively (Hair Jr. et al., 2014). In summary, the
data analysis process involved data screening using SPSS to handle missing values and outliers,
followed by hypothesis testing using Smart PLS 3.2.7, which is a PLS SEM approach known for
its applicability in marketing research and its suitability for analyzing small datasets.
3.10 Ethical consideration
The primary and most important issue in the field of research is ethical consideration. It is
important to guarantee the security of the respondent's provided personal information. The
ethical considerations were taken into account while conducting this study. The responders
received guarantees that their personal information would be kept secret and wouldn't be
disclosed to anybody else. They received a guarantee that the information would only be utilised
for study. Additionally, before being asked to complete the questionnaire, respondents were
informed of the study's objectives. They were also asked to complete a questionnaire based on
their perceptions. In order to lessen the social desirability impact, respondents were requested not
to converse with one another while completing the questionnaire. Additionally, respondents had
the option to pause the filling process whenever they wanted. Additionally, respondents were
asked to pose questions about the study.
3.11 Summary of the chapter
The chapter contains all the details about data collection, sample size, sampling techniques,
research approach. Moreover, the statistical technique selected for the data analysis is discussed
in this chapter.
Chapter#4: Data Analysis

Chapter#4: Data Analysis
4.1 Introduction:
The major goal of the data assessment is to put the research/proposed conceptual
framework model to the test SPSS (Statistical Package for the Social Sciences) is a statistical
package for the social sciences) and Smart PLS (Partial Least Squares) are two statistical and
analytical approaches that have been used. The SPSS tool was used toperform the process of data
screening, and Smart PLS was utilizedtoevaluate the link between the latent constructs,
determining whether or not the presented hypothesis had a substantial impact on other constructs.
PLS-SEM has expanded more extensively used throughout subsequent years in a variety of
areas, minimum sample size, and the usage of content validity seems to be the most frequent
causes to their utilization. PLS- SEM’s tool facility has a while back been updated to facilitate
more complex conceptual development and address data issues like genetic variation (Hair Jr et
al., 2014).
4.2 Reliability (Pilot Study):
The smaller version of a larger study; it is also known as a research feasibility research or
explicit pre-testing of a research instrument, such as a questionnaire is considered to pretested in
the pilot study. According to (Van-Teijlingen and Hundley, 2001), a prototype study is a critical
component of high-quality research), and it is typically used to assess the latent components'
dependability. Furthermore, reliability refers to the degree to which various elements of the
research yield consistent and predictable results, with Cronbach's Alpha, named for the inventor
Lee Cronbach’s, being the most used method for measuring reliability (1951).In beginning, 50
questionnaires have been distributed to respondents by LinkedIn and email for data collection,
and the acquired data was analyzed using SPSS in order to determine the Cronbach alpha. It
should be noted that Cronbach Alpha’s value must be higher than 0.7 and it has been shown in
table I (Appendix B), demonstrates that all indicators have satisfactory consistency and stability,
which was the primary goal of the pilot testing.
Reliability Statistics
Cronbach's
Alpha N of Items
.952 39
4.3 Data Screening:
The 250 questionnaires were distributed through email, LinkedIn to the appropriate
responders in order to collect the data. A total of approximately 92.8% of people responded on
survey. The data screening process was then applied to these 232 appropriate responses. Prior to
running the data through the statistical analysis, it is essential to complete the screening of the
data. SPSS is being used for data screening; data was checked for missing values, multivariate
and univariate outliers.
4.3.1 Missing Values:
It is accounted as a concern in the study since there exist few delicate questions that
respondents may be not be able to respond to due to absences of comprehension, stress, or
exhaustion. Apparently lack of answers in data would be considered as missing values.
Consequently, if the researcher does not appropriately manage the missing values, this problem
must be corrected before future experiments may be conducted. There is a great chance that in
the absence of missing data, an inaccurate interpretation of the data will be represented, and the
obtained result will be different from the actual. However, in the study, no value was missing,
and all of the data was meticulously organized.
4.3.2 Univariate and Multivariate Outliers:
Data screening should be performed before data coding and analysis to ensure data
integrity. The goal of data screening is to increase evidence and reduce pollution by identifying,
correcting, and eliminating errors, which entails checking and or detecting faults in the data.
Univariates are classified as a specific set of data items that do not fit with the total data, and
they are recognized in SPSS using the Z table. The absolute Z-score of the items, according to
Tabachnick and Fidell (2007), must be between – 3.29 + 3.29. After eliminating all
contaminants, the sample size for this research was 232 as total of 18 outliers were eliminated,
this was used for further analysis.
4.4 Descriptive Analysis and Interpretations:
In this research, the data was collected from a variety of manufacturing industries,
because the objective of this particular research is associated to the manufacturing sector. On the
sample of 232, the descriptive analysis was conducted to determine. The below table represent
the demographics, age, education, income and favourite restaurant. The data was mainly
collected from the respondents that are indulged in visiting the restaurants.
Table II-
Descriptive statistics (N=232)

4.5 Analysis:
Smart PLS was utilized in order to further evaluate the data. Outer evaluation was first
performed on the data afterwards it underwent the process of hypothesis testing.

4.5.1 Outer Model Measurement:
The outer model's objective is figuring out what are the constructs that can be detected
and are consider as fundamental or important constructs are. PLS-SEM was recommended by
Hair et al., (2011) for explanatory and complicated models. The validity and reliability of the
data are evaluated using the outer model. As a consequence, in order to confirm that a given
construct is valid, it is required to check the indicators' appropriateness (Churchill, 1979). The
variables' internal consistency is measured by the reliability (composite reliability) and the
validity includes measuring the convergent validity through average variance extracted and cross
loading and also the discriminant validity that includes Fornell- Larcker criterion and HTMT,
which is also validate by ( Hair et al., 2011 &Henseler et al., 2015). The researcher employed
PLS-SEM for estimating such a sophisticated model (Ringle et al., 2015).
4.5.1.1 Reliability Testing:
Composite reliability is used to assess internal consistency (Neuman, 2007), Hair et al.,
(2011) explained that the value of CR must be at least 0.7, as composite reliability (CR)
considers better provider measure of internal consistency indicator so in terms of reliability it is a
better measure than Cronbach alpha. Table III shows that all values of CR are greater than the
indicated value (CR>0.7), which is in the range of 0.821-0.935, which validates the accuracy of
the data (O'Leary-Kelly and Vokurka, 1998).
4.5.1.2 Convergent Validity Analysis:
For measuring the convergent validity the AVE (Average variance extracted) and item
loading is used (Hair et al., 2011).As stated by Hair et al., (2010) determined that the convergent
validity as well as factor loading must be greater than 0.65 whereas AVE should be 0.5 or greater
than 0.5. Hair et al.,(2014) explained that in factor loading must be greater than 0.7. Table III
highlights that AVE values are greater than the benchmark value (AVE >0.5).
Bagozziet al., (1991) advise deleting indicators with outer loadings lower than 0.4, taking
into account the impact of their elimination on reliability and validity, where as if the outer
loading are between 0.4 and 0.70, according to Hair et al., (2014), these items should only be
eliminated from the scale when doing so results in a rise in the AVE that is more than the
advised threshold value and the threshold value of average variance must be above than 0.5 (Hair
et al.,2014 ).
Table III:
Figure (I) Algorithm
4.5.1.3 Discriminant Validity:
It is used to determine if the variables should not correlate with each other (Hair Jr et al.,
2014), discriminate validity explains how a construct is unique. Moreover, the variables should
be different when compared to the other variables. According to (Hair Jr et al., 2014; Henseler et
al., 2015), Fornell and Larcker criterion, Heterotrait-Monotrait ratio of correlations (HTMT) and
cross loading between the items is used to determine the discriminant validity. It is used in order
to determine the accuracy of data and ensure that are no major statistical differences in the result
(Henseler et al., 2015). The basic premise is that two variables should not correlate with each
other in order to differentiate the constructs from each other (Hair Jr et al., 2014).
The Fornell and Larcker criterion recommended that an individualconstruct should have
lower variance with other constructs whereas it should have a greater variance with its own item
(Hair Jr et al., 2014). The criteria of Fornell and Larcker are the square root of AVE and it should
be greater than other correlation(Hair et al., 2011).The table below demonstrates that
discriminant validity exists as the diagonal lines in the table are greater in the rows of their own
items.
Table IV:
Fornell and Larcker
Emo
AE AL BL CE CS EE E SE
AE 0.915
AL 0.661 0.884
BL 0.667 0.656 0.862
CE 0.567 0.565 0.569 0.913
CS 0.362 0.436 0.552 0.307 0.908
EE 0.676 0.577 0.591 0.504 0.459 0.879
EmoE 0.691 0.962 0.656 0.584 0.459 0.615 0.895
SE 0.518 0.565 0.472 0.508 0.384 0.476 0.584 0.867
There have been discussions regarding the Fornell and larcker criteria and its efficacy in
determining the discriminant validity. As a consequence, Henseleter et al., (2015) developed the
new way that is known as HTMT correlation ratio which is considered as an approach which has
less limitations and is more extensive in determining discriminant validity with the benchmark
value being less than 0.9 (Henseler et al., 2015), so if there’s following value in such a way
discriminant validity is established, which demonstrate that all of the values are less than 0.90.
Cross loading elements is another way to verify discriminant validity. Each item should
be cross-loaded more than once in its own build (Hair Jr et al., 2014). According to Gefen and
Straub (2005), cross loading on its own construct should differ by 0.1 from cross loading on
another construct. The cross loading of all components is shown in Table VI.
AE AL BL CE CS EE Emo SE
AE2 0.918 0.635 0.592 0.505 0.349 0.600 0.658 0.496
AE3 0.911 0.574 0.630 0.532 0.312 0.637 0.605 0.451
AL2 0.612 0.890 0.567 0.524 0.421 0.526 0.890 0.575
AL3 0.624 0.904 0.585 0.511 0.373 0.527 0.903 0.463
AL4 0.508 0.857 0.594 0.459 0.360 0.473 0.743 0.456
BL1 0.499 0.538 0.829 0.430 0.593 0.520 0.535 0.353
BL3 0.649 0.588 0.877 0.541 0.424 0.505 0.594 0.411
BL4 0.576 0.570 0.879 0.501 0.405 0.502 0.566 0.459
CE2 0.530 0.482 0.522 0.910 0.262 0.495 0.499 0.436
CE3 0.506 0.549 0.519 0.916 0.299 0.427 0.566 0.490
CS2 0.350 0.413 0.452 0.266 0.909 0.457 0.434 0.397
CS3 0.307 0.379 0.551 0.293 0.907 0.376 0.400 0.301
EE3 0.628 0.518 0.495 0.489 0.389 0.891 0.557 0.445
EE4 0.582 0.564 0.596 0.457 0.479 0.896 0.574 0.386
EE5 0.573 0.427 0.457 0.375 0.330 0.851 0.481 0.431
EmoE
4 0.612 0.890 0.567 0.524 0.421 0.526 0.890 0.575
EmoE
5 0.624 0.904 0.585 0.511 0.373 0.527 0.903 0.463
EmoE
7 0.620 0.784 0.610 0.531 0.441 0.599 0.892 0.529
SE1 0.456 0.470 0.400 0.434 0.269 0.418 0.501 0.868
SE2 0.466 0.470 0.384 0.456 0.303 0.421 0.492 0.904

SE3 0.424 0.523 0.440 0.428 0.418 0.398 0.521 0.827
Factor Analysis
Figure (2) Bootstrapping
4.5.2 Inner model measurement and hypothesis testing:
The Data is further processed for the internal measurement of the model once the outer
model measurements have been verified (Henseler et al., 2009; Hair et al., 2011).By
bootstrapping, the PLS SEM Partial Least Square approach was employed to evaluate the
hypothesis with the Smart PLS (Haenlein and Akaplan, 2004). In bootstrapping (Hair Jr et al.,
2014), a large the total number of sub-samples, i.e. 5000, are created from the original data,
ensuring the results' stability. Figure 2 shows the bootstrapping figure.

4.5.2.1 Predictive Relevance of the Model:
Internal model's predictability for endogenous constructs determines its quality (Hair Jr et
al., 2014). In addition, the inner model is consistent was assessed using cross-validated
redundancy (Q2) as well as the determination coefficient (R2) (Hair et al., 2011; Hair Jr et al.,
2014; Henseler et al., 2009). The impact that the independent variable has on the dependent
variable is represented by R2 (Hair Jr et al., 2014). R2 was divided into three categories by
Sanchez (2013), high, moderate, and low. It is deemed strong when R2 is more than 0.6., when
the value is between 0.3 and 0.6, it is usually taken into consideration, whenever the value
becomes less than 0.3, it is considered low. The R2 values in Table VII indicate that the model is
fit.
Another way to verify the model's accuracy is to use cross-validated redundancy (Q 2).
According to (Hair Jr et al., 2014), Q2 assesses the predictive value of the inner model. The Q
square is calculated using the blindfolding method, Q square should be bigger than zero,
according to Henseleret al., (2009). The model's fitness is confirmed by the values of Q 2 in Table
VII, the values are greater than zero.
Table VII:
4.5.2.2 Hypothesis Testing:
This research includes eleven hypotheses. The hypothesis was examined using the
Structural equation model (SEM). For this particular research, Smart PLS was used in order to
test the model(Hair et al., 2011). The Table VIIIhighlights the results of the hypothesis.
Table VIII:
Hypothesis Testing
Standard
deviation T statistics
Original sample (O) (STDEV) (|O/STDEV|) P values Decision
AE ->
CE 0.320 0.092 3.478 0.001 Accepted
AE ->
CS 0.019 0.087 0.220 0.826 Rejected
AE -
>Emo
E 0.409 0.071 5.800 0.000 Accepted
CE ->
AL 0.007 0.022 0.311 0.756 Rejected
CE ->
BL 0.265 0.057 4.677 0.000 Accepted
CS ->
AL 0.008 0.019 0.399 0.690 Rejected
CS ->
BL 0.304 0.054 5.627 0.000 Accepted
EE ->
CE 0.162 0.085 1.911 0.056 Rejected
EE ->
CS 0.346 0.082 4.226 0.000 Accepted
EE -
>Emo
E 0.209 0.064 3.239 0.001 Accepted
EmoE
-> AL 0.961 0.017 57.056 0.000 Accepted
EmoE
-> BL 0.361 0.061 5.950 0.000 Accepted

Source: Author’s estimation
4.6 Discussion
Cognitive style is found to have a negative relation with attitudinal loyalty. Cognitive style refers
to an individual's preferred way of processing and organizing information. It can vary from
person to person, with some individuals being more analytical and logical in their thinking, while
others may be more intuitive and holistic in their approach. Attitudinal loyalty, on the other hand,
refers to a customer's psychological attachment and commitment to a particular brand, product,
or service. While there is not that much extensive research specifically examining the
relationship between cognitive style and attitudinal loyalty, it is important to note that cognitive
style is likely to influence how individuals form and maintain their attitudes, including loyalty
attitudes. Different cognitive styles may lead individuals to prioritize and interpret information
differently, resulting in varying attitudes and levels of loyalty. However, it is not accurate to say
that cognitive style universally has a negative relation with attitudinal loyalty. The relationship
between cognitive style and attitudinal loyalty is complex and can vary depending on multiple
factors, such as the specific context, individual differences, and the nature of the loyalty being
examined. For example, individuals with a more analytical cognitive style may evaluate products
or brands based on rational criteria, such as price, quality, and performance. They may be less
influenced by emotional appeals or brand image, and their loyalty may be more contingent on
objective factors. On the other hand, individuals with a more intuitive and holistic cognitive style
may rely on their gut feelings and overall impressions when forming loyalty attitudes. It is worth
noting that cognitive style is just one factor among many that can influence attitudinal loyalty.
Other factors such as personal values, brand image, satisfaction, and perceived benefits also play
significant roles in shaping attitudes and loyalty. Therefore, it is important to consider a range of
factors when studying and understanding the relationship between cognitive style and attitudinal
loyalty.
Chapter#5: Conclusion and

Recommendation
Chapter#5: Conclusion and Recommendation
5.1 Conclusion
In conclusion, the evidence gathered from our study indicates that brand experience and
customer engagement are pivotal in building brand loyalty for Karachi chain restaurants.
Emphasizing these aspects will not only contribute to a loyal customer base but also provide a
sustainable competitive advantage for restaurants in a dynamic and competitive market. By
proactively addressing challenges and leveraging opportunities, chain restaurants can reinforce
brand loyalty and achieve long-term success. The insights gained from this study can guide
restaurant owners and managers in their efforts to create meaningful and enduring relationships
with their customers, ensuring continued growth and prosperity in the evolving landscape of the
restaurant industry. In conclusion, the evidence gathered from our study confirms the vital role
that brand experience and customer engagement play in establishing and deepening brand loyalty
in Karachi chain restaurants. The findings underscore the significance of creating positive and
memorable brand experiences, which leave a lasting impact on customers. The sensory aspects
of the restaurant, such as ambiance, music, and decor, emerge as crucial drivers of brand
experience, influencing customer emotions and behaviors.
Moreover, our research highlights the importance of customer engagement as a means to foster
sustainable relationships with patrons. By actively interacting with customers both online and
offline, restaurants can create a sense of connection and belongingness. Social media platforms
and loyalty programs are effective tools for nurturing customer engagement and building a loyal
customer base. The study also underscores the significance of personalization and tailored
offerings in deepening brand loyalty. When restaurants understand and cater to individual
customer preferences, it enhances the emotional bond between the brand and the customers. This
leads to increased brand loyalty as customers feel valued and understood. Another critical
finding of the study is the power of word-of-mouth marketing in promoting brand loyalty.
Satisfied and engaged customers become brand advocates, willingly recommending the
restaurant to friends, family, and acquaintances. This organic growth through positive word-of-
mouth can significantly contribute to the restaurant's success. However, our research also
highlights the challenges faced by chain restaurants in Karachi. Maintaining consistency in
service quality, managing online reputation, and adapting to changing customer preferences and
trends are some of the hurdles that need to be addressed proactively. For managers and owners of
chain restaurants, our study provides important managerial implications. Prioritizing the creation
of unique and memorable brand experiences, investing in ambiance, staff training, and service
quality are essential to ensure every customer interaction is positive and engaging. Furthermore,
leveraging digital platforms and loyalty programs to foster ongoing customer engagement is
crucial. Active engagement with customers on social media, responding to their feedback, and
providing personalized offers can strengthen their connection with the brand. It is also essential
for restaurant managers to recognize the importance of customer feedback and data analytics. By
collecting and analyzing customer feedback, they can identify areas for improvement and tailor
their offerings to better meet customer preferences. The main question that arises is why
different customers evaluate restaurant service performance in distinct ways. New customers
tend to base their initial evaluations on functional benefits such as value for money and
convenience, using a calculative process to assess the service brand's utility. On the other hand,
repeat customers rely heavily on relational benefits like affiliation, personal recognition, rapport,
and empathy when evaluating service performance.

However, this study reveals that customer satisfaction alone is not enough to create ongoing
loyalty. This challenges the notion of using satisfaction as a sole indicator of service provider
performance. Relying on generalized satisfaction metrics to assess various service attributes may
be misleading, as it overlooks a more comprehensive examination of customers' responses,
including measures of affect (emotional response). The research identifies affective experience
as a significant driver of customer engagement, both cognitively and emotionally, particularly in
restaurant settings. Sensory experiences, such as food quality and ambiance, have a positive
impact on cognitive engagement but do not significantly affect emotional engagement. Aesthetic
experience, on the other hand, influences emotional engagement but not cognitive engagement,
meaning it elicits emotional responses from consumers but does not necessarily affect their
cognitive processes. Emotional engagement emerges as a key driver of both behavioral and
attitudinal loyalty, possibly due to its deeper level elements, such as attachment and love,
triggering loyalty at both the behavioral and attitudinal levels. The study also highlights trust,
commitment, and satisfaction as antecedents of customer engagement. Emotional engagement
plays a mediating role in shaping brand loyalty, followed by cognitive engagement. In low-
involved contexts like restaurants, emotional engagement may play a more significant role in
creating customer satisfaction and loyalty. This emotional mechanism can foster loyalty more
effectively than in high-involved contexts. This research presents an innovative brand loyalty
model mediated by emotional engagement, particularly applicable to chain restaurant contexts. It
examines the relationships between brand experiences, customer engagements, and brand
loyalty, offering valuable insights for chain restaurants seeking to build and strengthen customer
loyalty to gain a sustainable competitive advantage.

5.2 Managerial and Theoretical Implications
The research findings provide significant theoretical implications for the field of marketing and
brand management. The study highlights the central role of brand experience and customer
engagement in building brand loyalty within the chain restaurant context. The identified
relationship between positive brand experiences and increased customer engagement contributes
to the understanding of how these factors interact to influence brand loyalty. This study
reinforces the importance of creating memorable and satisfying brand experiences to enhance
customer engagement and, in turn, foster brand loyalty. Additionally, the research offers valuable
insights into the dynamics of customer-brand interactions and sheds light on the mechanisms
through which customer engagement influences loyalty in the restaurant industry. The
managerial implications drawn from this research offer practical guidance to chain restaurant
managers in Karachi on how to strengthen brand loyalty among their customer base. Firstly, the
study underscores the significance of consistently delivering exceptional brand experiences
encompassing elements like ambiance, service, and food quality. By focusing on creating
positive emotional connections with customers, managers can increase the likelihood of repeat
visits and patronage. Secondly, the study emphasizes the pivotal role of customer engagement
strategies, including personalized offers, loyalty programs, and active social media presence, to
keep customers engaged and invested in the brand. Managers should prioritize these initiatives to
enhance customer interactions and cultivate brand loyalty. Overall, the research underscores the
importance of aligning brand experience and customer engagement efforts to drive brand loyalty,
ultimately leading to sustained business success for chain restaurants in Karachi.

5.3 Limitations and Future Recommendation
Despite its contributions, this research study has several limitations that warrant consideration.
Firstly, the study's focus on chain restaurants in Karachi may limit the generalizability of
findings to other geographical locations or restaurant types with different customer preferences
and cultural backgrounds. Therefore, future research should encompass a more diverse sample to
ensure broader applicability. Secondly, the data collected for this study relies predominantly on
customer perceptions, which may introduce bias or subjectivity in responses. Combining
customer feedback with objective performance metrics could provide a more comprehensive
analysis. Additionally, the cross-sectional nature of the research design restricts the ability to
establish causality. A longitudinal approach could better capture the dynamics between brand
experience, customer engagement, and brand loyalty over time. Building on the insights gained
from this research, several future recommendations emerge to enhance the understanding of
brand loyalty, brand experience, and customer engagement in chain restaurants. Firstly,
researchers could conduct comparative studies across various restaurant formats and regions to
identify differences in the factors influencing brand loyalty. This will aid in developing region-
specific strategies for customer retention and brand loyalty in the restaurant industry. Secondly,
exploring the role of technology in improving brand experience and customer engagement
warrants attention. As technology continues to evolve, investigating the impact of artificial
intelligence, virtual reality, or augmented reality on enhancing customer interactions and loyalty
could be valuable. Thirdly, deeper investigations into the role of employee engagement in
delivering exceptional brand experiences may offer unique insights for managers seeking to align
their workforce with customer-centric goals. Lastly, conducting experimental studies to test the
effectiveness of specific customer engagement strategies could provide more conclusive
evidence of causality, aiding managers in prioritizing their investments for better results.
By addressing these limitations and pursuing the future recommendations, researchers and
managers in the chain restaurant industry can further advance their understanding and
implementation of effective strategies to establish and deepen brand loyalty, ultimately driving
sustained growth and success.

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Appendix
Reliability Statistics
Cronbach's
Alpha N of Items
.952 39
AE AL BL CE CS EE EmoE SE
AE2 0.918 0.635 0.592 0.505 0.349 0.600 0.658 0.496
AE3 0.911 0.574 0.630 0.532 0.312 0.637 0.605 0.451
AL2 0.612 0.890 0.567 0.524 0.421 0.526 0.890 0.575
AL3 0.624 0.904 0.585 0.511 0.373 0.527 0.903 0.463
AL4 0.508 0.857 0.594 0.459 0.360 0.473 0.743 0.456
BL1 0.499 0.538 0.829 0.430 0.593 0.520 0.535 0.353
BL3 0.649 0.588 0.877 0.541 0.424 0.505 0.594 0.411
BL4 0.576 0.570 0.879 0.501 0.405 0.502 0.566 0.459
CE2 0.530 0.482 0.522 0.910 0.262 0.495 0.499 0.436

CE3 0.506 0.549 0.519 0.916 0.299 0.427 0.566 0.490
CS2 0.350 0.413 0.452 0.266 0.909 0.457 0.434 0.397
CS3 0.307 0.379 0.551 0.293 0.907 0.376 0.400 0.301
EE3 0.628 0.518 0.495 0.489 0.389 0.891 0.557 0.445
EE4 0.582 0.564 0.596 0.457 0.479 0.896 0.574 0.386
EE5 0.573 0.427 0.457 0.375 0.330 0.851 0.481 0.431
EmoE4 0.612 0.890 0.567 0.524 0.421 0.526 0.890 0.575
EmoE5 0.624 0.904 0.585 0.511 0.373 0.527 0.903 0.463
EmoE7 0.620 0.784 0.610 0.531 0.441 0.599 0.892 0.529
SE1 0.456 0.470 0.400 0.434 0.269 0.418 0.501 0.868
SE2 0.466 0.470 0.384 0.456 0.303 0.421 0.492 0.904
SE3 0.424 0.523 0.440 0.428 0.418 0.398 0.521 0.827

Standard
deviation T statistics
Original sample (O) (STDEV) (|O/STDEV|) P values Decision
AE ->
CE 0.320 0.092 3.478 0.001 Accepted
AE ->
CS 0.019 0.087 0.220 0.826 Rejected
AE -
>Emo
E 0.409 0.071 5.800 0.000 Accepted
CE ->
AL 0.007 0.022 0.311 0.756 Rejected
CE ->
BL 0.265 0.057 4.677 0.000 Accepted
CS ->
AL 0.008 0.019 0.399 0.690 Rejected
CS ->
BL 0.304 0.054 5.627 0.000 Accepted
EE ->
CE 0.162 0.085 1.911 0.056 Rejected
EE ->
CS 0.346 0.082 4.226 0.000 Accepted
EE -
>Emo
E 0.209 0.064 3.239 0.001 Accepted
EmoE
-> AL 0.961 0.017 57.056 0.000 Accepted
EmoE
-> BL 0.361 0.061 5.950 0.000 Accepted

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“Establishing and Deepening Brand Loyalty through Brand Experience and Customer

Engagement: Evidence from Karachi’s Chain Restaurants”.

Department of Business Administration

In the partial execution of the obligation for the

MASTER OF BUSINESS ADMINISTRATION

This thesis has been

Accepted by the faculty

FACULTY OF BUSINESS ADMINISTRATION

direction and cooperation.

1.2 Problem Statement...........................................................................................................3

1.3 Research Aim....................................................................................................................5

1.3 Research Objectives..............................................................................................................5

1.5 Research Questions...............................................................................................................5

1.6 Significance of the Study......................................................................................................5

1.7 Scope of the Study.................................................................................................................6

1.8 Organization of the Study....................................................................................................7

Chapter#2: Literature Review...................................................................................................9

2.1 Theoretical Background.......................................................................................................9

2.2 Literature Review.................................................................................................................9

2.3 Hypothesis Development....................................................................................................15

2.3.1 Sensory experience and customer engagement.............................................................15

2.3.2 Esthetical experience and customer engagement...........................................................17

2.3.3 Affective experience and customer engagement...........................................................19

2.3.4 Customer engagement and brand loyalty.......................................................................21

2.3.5 Cognitive style impact on behavioral and attitudinal loyalty........................................23

2.4 Conceptual Framework......................................................................................................25

Chapter#3: Research Methodology.........................................................................................27

3.1 Research approach.............................................................................................................27

3.3 Research design...................................................................................................................28

3.4 Data source & instrumentation:........................................................................................28

3.5 Face and content validity...................................................................................................29

3.6 Target population...............................................................................................................30

3.7 Sample size...........................................................................................................................30

3.8 Sampling technique.............................................................................................................30

3.9 Statistical techniques for data analysis.............................................................................31

3.10 Ethical consideration........................................................................................................31

3.11 Summary of the chapter...................................................................................................32

Chapter#4: Data Analysis........................................................................................................34

4.2 Reliability (Pilot Study):.....................................................................................................34

4.3 Data Screening:...................................................................................................................35

4.3.1 Missing Values:.............................................................................................................35

4.3.2 Univariate and Multivariate Outliers:............................................................................36

4.4 Descriptive Analysis and Interpretations:.........................................................................36

4.5.1 Outer Model Measurement:...........................................................................................39

4.5.2 Inner model measurement and hypothesis testing:........................................................46

Chapter#5: Conclusion and Recommendation......................................................................53

5.2 Managerial and Theoretical Implications........................................................................56

5.3 Limitations and Future Recommendation.......................................................................57

interactions, and personalized communications, leading to higher levels of brand loyalty.

strategies to optimize customer satisfaction, retention, and advocacy.

Keywords: Brand Loyalty, Brand Experience, Customer Engagement, Karachi’s Chain

landscape but also intensified competition, necessitating a strategic reevaluation of customer-

leading to repeated patronage, positive word-of-mouth, and resistance to competitive offerings.

In a marketplace teeming with alternatives, cultivating brand loyalty becomes instrumental in

contribute to a memorable encounter. By orchestrating a seamless and gratifying experience, fast

further solidifying their allegiance to the brand.

1.2 Problem Statement

diverse consumer base in Karachi, spanning various socio-economic backgrounds, presents a

unique challenge in crafting effective customer engagement strategies. Research on customer

Karachi's cosmopolitan environment, characterized by its rich tapestry of cultures, languages,

and traditions, introduces an additional layer of complexity in brand loyalty formation.

1.3 Research Aim

for chain restaurants.