Methods in Business Research

MKT 404
Section M-15108
Fall 2022
Instructor
Miss Nazia Saeed

Research Paper:
“How luxury brands build customer-based brand equity through phygital experience”

Group Members:
Abdul Fattaah Bakhsh 20201-27948
Fahila Abbasy 20201-27997
Ruqaiya Malwer 20201-27502
 Acknowledgement

We would especially like to acknowledge and convey our gratitude to Allah (SWT), who helped
us to finish this Research . Additionally, our group would like to express gratitude to Miss Nazia
Saeed for providing us the resources, guiding us along the way, and investing Her time in
helping us understand the course's Methods in Business Research.

We also like to thank the Institute of Business Management for giving us the chance to realise
our potential. We also like to express our gratitude to the survey participants who helped us
finish our research by responding to the questionnaire. Last but not least, a special thank you to
all the other members who put in a lot of effort to finish this report, for their insightful
conversations and ideas.
 Abstract

Consumer purchasing behaviour has been profoundly impacted by digitization, as evidenced by

the luxury brands' current use of the "Phygital" marketing strategy to enhance consumers'
experiencing value. It is essential to examine brand websites from the perspective of the user to
understand how the site is organised and how users interact with it. This study is focused on how
luxury brand websites' characteristics increase customer-based brand equity (CBBE), customer
satisfaction, and repurchase intention. An online poll of people who have previously shopped at
the websites of luxury companies was done to further understand the relationship between these
characteristics. According to the survey's findings, emotional appeal, web design, and customer
service all contribute to CBBE, which in turn influences satisfaction and intent to repurchase .
According to the survey's findings, customer service, online design, and emotional appeal all
contribute to CBBE, which in turn influences satisfaction and repurchase intent. Secondly ,
premium brands work to strengthen their brand equity in addition to optimising sales.

Introduction
Despite the economy's challenges, since 2020, when there has been a dramatic increase in
internet sales, individuals have never been able to say no to a luxury item. When purchasing any
luxury items, consumers used to prefer in-person encounters with vendors, but today's luxury
enterprises are delivering IT solutions to a variety of challenges. Due to the online luxury
market's improved capacity to reach consumers, major luxury brands including Gucci, LV,
Hermes, and Prada have switched to online sales. Consumers still prefer to buy luxury goods
offline, according to research, but internet websites are crucial in catching their attention because
they like to acquire information online before making buying decisions.. People adapt to all the
technical advancements in today's constantly evolving environment in order to advance in this
cutthroat economy. Customers who are tech aware are less interested in the physical market than
regular consumers, according to research. It raised concerns about the luxury brands' slow
adoption of physical marketing in an environment where the needs of the consumer come first.
The term "phyigital," derived from the words "physical" and "digital," is a strategy that combines
the advantages of offline and online distribution to create a more refined experience . Brands
have learned how to evaluate their website's structure and consumer appeal as a result of the
gradual expansion of online luxury shopping. Existing studies that have looked into how luxury
brands' internet marketing campaigns affect CBBE have unnaturally been restricted to the
aesthetic appeal or website design components. Luxury brands are unable to maximise the
customer experience if they limit the type of influence that can be produced by the numerous
website attributes to just the aesthetic component. Further research is needed for luxury brands in
this area.

Theoretical background:

Relationship marketing refers to the interpersonal interactions among the company's commercial
partners and suppliers. The previously constrained relationships between a brand and its
customers are expanded by this combination of relationships. The customer experience is crucial
in creating a brand because implementing such attributes can cause consumers to have sensory,
affective, and cognitive reactions. As a result, customers develop lasting relationships with
brands, which in turn leads to brand equity that manifests as ongoing behavioural responses.

• Problem
This study explores the factors that contribute to customer-based brand equity (CBBE),
satisfaction, and repurchase intention on the websites of premium brands.

• Gaps

In the past, the luxury goods market had a sluggish shift to digital, with more than half of
purchasers being classified as firms with high participation, where face-to-face interactions with
sellers are essential. However, by utilising IT solutions created for a range of objectives, the
luxury industry is currently developing a new market trend.

• Research Objective

The main objectives of this study are to first confirm the effects of luxury brand websites on the
growth of brand awareness and brand loyalty. The second goal of this study is to determine
whether brand loyalty and brand recognition, which have grown as a result of the positive effects
of website qualities, lead to customer satisfaction with online purchases and repurchase
intentions. Finally, this study makes an effort to describe qualities that might deliver the best
brand experience tailored to changing consumer preferences and enhance understanding of the
dynamic online luxury market environment.
 Literature review

ONLINE BRAND EXPERIENCE ON THE BRAND WEBSITE

According to Morrison and Crane (2007), brand experience leads to brand loyalty and increases
the profitability of the brand by creating emotional connections with the environment where the
service encounter occurs. Studies have demonstrated a positive relationship between brand
experience and brand loyalty whether with tangible or intangible products (Kim and Yu, 2016;
Morrison and Crane, 2007).Islam & Rahman, 2017; Vinyals-Mirabent et al.(2019) Unaffected by
their size or industry, brands must have websites in a market where the online experience is
increasingly valued. (Petit et al., 2019; Martnez-Sala et al., 2020) This is due to the fact that
websites are, in the end, an effective marketing instrument and have a wider advertising scope
than other types of advertising. Academic study on online experiences via websites is thriving
and active in acknowledgement of such importance. With highly competitive markets and
decreased product differentiation, brand loyalty is a key element for marketers to focus upon
(Fournier and Yao, 1997). By skillfully controlling the emotional brand experience of the clients,
a strong service brand may be created. (Morrison & Crane, 2007) Emotional branding is
winning the consumer through their senses by linking them to their emotions and constructing a
deep, eternal and positive emotional association towards the brand that surpasses the material
satisfaction. Shen et al., (2016) Furthermore, e-satisfaction is substantially correlated with the e-
service attributes of luxury companies, such as informativeness and convenience. Website
characteristics are critical in the eyes of online luxury buyers due to their influence on return
intentions, brand attitudes, product evaluations, customer happiness, and impressions of online
services. e-shopping, interaction, and usability—three essential distinguishing elements—were
used to analyse the content of luxury brands' websites and identify four categories. E-shopping in
this context refers to the practical elements of shopping (Geerts 2013).

EMOTIONAL APPEAL

Pengnate & Sarathy, (2017) ‘Emotional appeal’ refers to an indirect experience created by
visiting a website. It directly influences a consumer’s attitude toward a brand. Wu et al., (2018)
Moreover, customers’ emotional appeal is manifested in various consumer behavioral responses,
such as repurchase intention. Kapoor et al., (2021) When consumers have limited brand
recognition the emotional appeal can lead to a more positive attitude, as opposed to rational
appeal. In addition, Kusumasondjaja (2019) found that emotional appeal is an effective way to
communicate the benefits and properties of services to consumers. Cleff et al., (2014), In
experiential marketing, that seeks to provide sensual and pleasurable experiences to consumers,
the emotional appeal can be used most effectively. Found that sensual elements of emotional
appeal 4 H. HYUN ET AL. greatly influence the formation of consumer preferences for a brand
(Luo et al. 2011). Rather & Hollebeek, (2019)Furthermore, an emotional connection between
customers and brands created by the brand experience can lead to positive brand identification
and brand loyalty.

WEB DESIGN

Parasuraman et al., (2005) The tangible elements on the SERVQUAL scale refer to the physical
facilities, equipment, and appearance of the staff. Li & Suomi, (2009) However, in the web
environment of e-service, the tangible element refers to the website’s design because it covers
the main entrance to the brand and a successful transaction process. A positive effect of online
cues, such as design and layout, on consumers’ affective states by (Kühn and Petzer 2018). Poor
website design might give visitors a bad impression of the quality of the site, which may
encourage them to abandon the buying process. Zhang et al., (2010) According to research in the
area of human-computer interactions, website design must go beyond usability in order to satisfy
users' emotional, affective, and aesthetic requirements and desires. (Li & Yeh, 2010) Research
from the past highlights how website aesthetics, such as display readability and content richness,
affect vendor and customer trust. Cyr and co. (2006) Additionally, aesthetically pleasing
websites affect customer loyalty (Cyr et al., 2006).

BRAND AWARENESS: Aaker, (1991) Brand awareness is a fundamental dimension of brand

equity , as brand equity cannot develop unless people are aware of the brand. Building brand
recognition must therefore come first and foremost. Christodoulides et al., (2006) In the online
retail environment, website quality has been found to support the formation of brand awareness
as well as strengthening the consumer-brand relationship. One factor in the development of
brand awareness is the perceived quality of the company's products.Brand awareness can be
directly predicted by a number of factors that affect the quality of a website. Ethier et al., (2006)
a brand’s official website influences brand awareness by representing the overall
atmosphere.Therefore, it is anticipated that website qualities will have a favourable impact on the
development of brand awareness. Cheung et al., (2019) Several studies on brand awareness have
reported that the experience on a brand website improves brand awareness.

H1a: The website's design is positively related to luxury brand awareness

H1b: The website's emotional responses is positively related to luxury brand awareness

BRAND LOYALTY : Oliver, (1999) Brand loyalty is defined as a deeper commitment to a

preferred product or service and is characterized as customer attachment. Brodie et al., (2013)
Past studies have consistently revealed that customers form brand loyalty based on their
evaluation of their experiences in service encounter situations. When a website visitor has a
positive impression of the brand experience there, they will feel positively about the brand,
which helps, to build brand loyalty. Lin & Lee, (2012)Positive emotional reactions from
customers can be induced by a well-designed, user-friendly website. Tsao & Hsieh ( 2014)
Additionally, a high-quality website helps the business by lowering customer shopping risk and
boosting e-loyalty, or loyalty to the website. As a result, certain website features are projected to
have a favourable effect on the growth of brand loyalty.
H2a: The website's design is positively related to luxury brand loyalty

H2b: The website's emotional responses is positively related to luxury brand loyalty

Alkhawaldeh et al., (2017) The link between brand awareness and brand loyalty has been
supported by many studies. A brand with higher brand awareness and positive recognition is
likely to receive greater brand loyalty from its customers, thereby leading to higher purchasing
intentions( Aaker & Keller, 1990). Since there are more barriers to entry in the luxury sector than
in other sectors, brand awareness may be more important in determining brand loyalty for luxury
firms.

ONLINE CUSTOMER SERVICE SATISFACTION AND REPURCHASE INTENTION :

When a brand is unfamiliar, consumers rarely make purchasing decisions. the past trends have
given a fair idea that customers would rather prefer to purchase product fro a known brand rather
than to purchase a product from a new businss as their is high risk of success in that case. Keller,
(2003b) When consumers are learning, considering, and making decisions, well-known brands
have an advantage. As a result of customers' positive perceptions of the quality of a company's
online service, which increases brand awareness, consumer satisfaction and repurchase intention
for that company's goods or services may increase.

H4: Luxury brand awareness is positively related to customer satisfaction

Both behavioural and attitudinal aspects of brand loyalty exist. The behavioural dimension gives
consideration to the consumer's actual brand loyalty demonstrated during the process of making
decisions. Aaker, ( 1991) Attitudinal brand loyalty refers to preferences formed through previous
usage and experience with the brand. Roy & Butaney, (2014) Positive experiences across various
website attributes are expected to build brand loyalty and drive repurchase intentions .

H5: Luxury brand loyalty is positively related to online customer satisfaction

Pee and co. (2018) Customers who have an online shopping experience that meets or exceeds
their expectations, in addition to making a purchase, are more likely to create a favourable brand
relationship and return to that business in the future. Dai and co. ( 2015) The evaluation of one's
own experiences leads to the psychologically satisfying state of customer satisfaction, which
promotes behavioural intention. According to the research, customer happiness and repurchase
intention will be positively correlated.

Customer Service

Customer service is essential to running an internet store successfully. Customer service is

strongly connected with service dependability, customer sensitivity, individualized care, and
prompt resolution of complaints, according to the research. Customers experience happiness,
excitement, and attraction when a retail employee provides exceptional service. Positive feelings
are evident, for instance, when a salesperson meets the expectations of their clients. van Riel et al
(2001) extant literature on customer service scale development details the importance of
customer service. Cao et al (2018); Prasad et al (2019) Customer service is crucial in an online
environment. Customer service is seen as a crucial component of e-service quality in the garment
and fashion sectors, where premium brands primarily retail (Chung et al., 2020). Kim (2019) By
delivering a positive online buying experience, the e-service quality represented by customer
service greatly contributes to the development of e-loyalty. In the case of service recovery, the
significance of online customer assistance is also highlighted. Shams et al (2020) Brand loyalty
rises when clients experience successful recovery after a service breakdown.

Efficiency

Access to transaction choices and online interfaces enhances service quality. Efficiency is
generally thought of as a necessary website component because of its favourable relationship
with client happiness. Additionally, the official website of a particular brand is evaluated in
terms of efficiency and effectiveness from the perspective that a website is a communication
channel between the brand and customers. Rafiq et al (2012) Customer's opinion of the value of
online services is positively impacted by a number of website efficiency factors. System
effectiveness, for instance, was discovered to have a favourable impact on brand equity,
including brand image, brand awareness, and brand loyalty, along with responsiveness and
fulfilment, in the online banking sector (Abu-El Samen, 2015). Efficiency is primarily thought of
as a component of the quality of online services when it comes to service delivery. Carlson &
O’Cass (2011) finally, it has been demonstrated that when users create attitudes toward a
website, transaction efficiency directly influences hedonic or utilitarian value judgments.

● Brand Awareness

A customer's capacity to recognise and recall a brand is referred to as brand awareness,

according to Keller (1993). Brand equity cannot form until consumers are aware of the brand,
hence brand awareness is a basic component of brand equity (Aaker, 1991). Building brand
recognition must therefore come first and foremost. Additionally, people are more likely to
intend to buy and suggest the brand's services and goods when it is more widely recognised
(Horng et al., 2012). As a result, businesses should work to raise brand recognition among
website users in order to increase the possibility that they will buy and suggest the brand. (Oh,
2000) .One factor in the development of brand awareness is the perceived quality of the
company's products. Customers can also sense store image, emotional arousal, and customer
service in a retail setting (Rather & Camilleri, 2019). Similar to offline retail, it has been
discovered that good websites can build brand awareness and improve the interaction between
consumers and brands (Christodoulides et al., 2006). Due to this perspective, a brand’s official
The total atmosphere is represented by the website, which affects brand awareness (Éthier et al.,
2006). In this sense, a number of characteristics that define a website's quality serve as precise
predictors of brand recognition. For instance, Madhavaram et al. (2005) observed that over time,
brand recognition is influenced by a website's general design or its visual elements for emotional
appeal. Additionally, the effectiveness of the system, especially its customer service, has a
favourable impact on brand recognition (Chen & Chang, 2008). Importantly, brand-aware web
consumers are more inclined to purchase the brand's products (Albert et al., 2004). According to
several brand awareness studies, visiting a brand website increases brand awareness (Cheung et
al., 2019; Quan et al., 2020). As a result, it is anticipated that website characteristics will
positively impact the development of brand awareness.

● Brand loyalty

Following brand awareness, brand loyalty is the second essential component of brand equity
(Aaker, 1996). Brand loyalty is classified as customer attachment and is defined as a stronger
devotion to a preferred good or service (Oliver, 1999). It is viewed as a crucial component from
the brand's perspective for creating and sustaining long-term relationships with customers
(Kandampully et al., 2015). According to previous research, consumers create brand loyalty
based on how they rate their interactions with service providers (Brodie et al., 2013; Rather &
Hollebeek, 2019). Brand loyalty is positively impacted by the website's user experience or the
calibre of customer service in the context of online customer experience. A user-friendly, well-
designed website can elicit favourable emotional reactions from customers (Lin & Lee, 2012).
When a website visitor has a positive impression of the brand experience there, they will feel
positively about the brand, which helps, inadvertently, to build brand loyalty. For instance,
factors that influence how well a website is evaluated, such its design and interaction, help to
build brand trust and loyalty (Islam et al., 2019). Additionally, a high-quality website promotes
the company by lowering consumer shopping risk and boosting e-loyalty, or loyalty to the
website (Hsieh & Tsao, 2014). The effectiveness of websites has been linked to increased brand
loyalty in prior research (Candiwan & Wibisono, 2021). Additionally, customer repurchase
decisions are influenced by how consumers perceive a brand's website (Zhou et al., 2009). As a
result, various website characteristics are anticipated to positively impact the development of
brand loyalty.

● Repurchase Intention

When consumers are learning, considering, and making decisions, brands have an advantage.
(Keller, 2003b). For example, Choosing products when the brand is unfamiliar is rare. Customers
are more inclined to use, buy, and suggest a service, product, or brand if they are familiar with it
(Horng et al., 2012). In other words, creating a strong brand awareness influences the intentions
of website visitors to make purchases (Nofal et al., 2020). In conclusion, positively perceived
online service quality increases brand awareness, which in turn raises customer happiness and
repurchase intention for the company's goods or services.

● Theoretical Framework

H3: Luxury brand awareness is positively related to online customer satisfaction.

H4: Luxury brand loyalty is positively related to online customer satisfaction.

H5: Online customer satisfaction is positively related to brand loyalty.

METHODOLOGY

● VARIABLES

We chose to use a total of 8 constructs in our empirical research to accurately and precisely find
the impact of electronic word of mouth on customers' purchase intentions based on the literature
review and previous studies on How luxury brands build customer-based brand equity through
phygital experience. Website design is the research's Independent Variable. Customer
satisfaction is the the research's dependent variable. In order to better understand how mediation
affects online shoppers' purchase intentions, we have incorporated it in our research. In our
study, brand loyalty and brand awareness served as the mediation variables.

● RESEARCH DESIGN

Our research is grounded in the positivist research paradigm, which holds that there is only one
reality that can be quantified. In this quantitative study, we examine the effects of how luxury
businesses develop client-based brand equity via digital experience. Our study focuses on many
elements that significantly influence consumers' propensity to make purchases. The study is
specifically made to measure the part websites play in the connection between the target market
and employees' buying intentions. Additionally, the impact of a brand's perceived trustworthiness
in determining consumer loyalty and purchase intentions is covered in our research.We carried
out an online survey with 125 respondents using a convenience sample, and we then validated
our conceptual model using an empirical analysis of participant replies.

● QUESTIONNAIRE DESIGN

We have created a closed-ended questionnaire from previous studies and literature reviews
because this is a quantitative study and empirical research, in order to assess the influence of the
brand through web stores on customers' inclinations to make online purchases. 34 scale items
across 8 different domains make up our questionnaire, and the responses are tallied on a Likert
scale from 1 to 5, or from strongly disagree to strongly agree. The first section of our
questionnaire is a consent form, in which we inform participants that taking part in the study is
entirely voluntary, that the information they provide will be kept private, and that we are asking
about the cost of their purchases in order to better understand the respondents. The second
section of the questionnaire is made to gather information in the form of variables that are paired
with heading-level questions. The third section of our survey asks about the variables that really
influence the consumer's decision to investigate more.

● DATA COLLECTION

Online surveys are used to obtain the data for this study. Due to our limited resources and time,
we created our questionnaire using Google Forms. We then emailed the link to it to our
university's undergraduate, graduate, and postgraduate peers, inviting them to join our group. In
order to precisely target the proper type of people for data collection, we have also uploaded our
questionnaire on several online discussion forums and communities. When we arrived at the We
take a spreadsheet file from Google Forms and upload it to SPSS to perform statistical analysis
on the proper number of replies to our survey.

● SAMPLE DESIGN

The inclusion criterion for our research was that we concentrated on people who actively follow
their preferred brands and goods on social media platforms including YouTube, Twitter,
Facebook, Instagram, online brand communities, and discussion forums. The sample strategy we
used in this empirical descriptive study was convenience sampling (a.k.a Non-Probability
Sampling). The online research study contacted 400 persons who use social media. However,
due to time constraints and a tiny social circle, only 125 people replied to our survey.
 RESULTS & DISCUSSIONS

 RESPONDENTS’ PROFILE
Our poll was completed online by 125 people, according to the results. Male and female
participation rates in our survey were respectively 54.4% and 45.6%, indicating that we had a
balanced representation of the sexes. Nearly 90% of the people who responded to our survey
were young adults, with ages ranging from 18 to 24.

 DESCRIPTIVE STATISTICS
To ensure that the data were normal and to obtain univariate normality, we used SPSS to
perform a descriptive analysis test. The table below displays the findings.

Statistics
Ep WD CS EFF BA RI BL CSA
N Valid 125 125 125 125 125 125 125 125
Missing 0 0 0 0 0 0 0 0
Mean 2.5760 2.5680 2.5320 2.7296 2.5632 2.5547 2.5440 2.4773
Std. Deviation 1.31464 1.33335 1.25120 1.25448 1.30542 1.38472 1.39991 1.26103
Skewness .559 .579 .663 .550 .600 .660 .570 .649
Kurtosis -1.177 -1.132 -.955 -1.143 -1.167 -1.077 -1.159 -.819
.430
  CONSTRUCTS RELIABLITY

SPSS was used to test the dependability of each construct we used in our study, and the findings are
shown in the table. Cronbach's Alpha ratings for each contract are greater than 0.7, indicating the
dependability and consistency of each of our arrangements.

CONSTRUCTS CRONBACH'S ALPHA ON NO OF ITEMS

STANDARDIZED ITEM

Emotional Appeal 0.924 3

Website Design 0.934 3

Customer Service 0.934 4

Efficiency 0.946 5

Brand Awareness 0.956 5

Customer Satisfaction 0.904 3

Brand Loyalty 0.947 3

Repurchase Intention 0.956 3

 CORRELATION ANALYSIS

Correlation analysis is used to make sure that all of the constructs used in our research are associated
with one another. Therefore, we conducted the test using SPSS to ensure that all of the components
included in our research are related to one another. The data are summarised in the table.

Correlations
Ep WD CS EFF BA RI BL CSA
Ep Pearson Correlation 1
WD Pearson Correlation .922 1
CS Pearson Correlation .938 .928 1
EFF Pearson Correlation .932 .933 .931 1
BA Pearson Correlation .924 .941 .933 .946 1
RI Pearson Correlation .910 .934 .937 .918 .917 1
BL Pearson Correlation .888 .943 .896 .891 .920 .914 1
CSA Pearson Correlation .911 .948 .942 .918 .926 .940 .927 1

 Reliability, Validity, Correlation Analysis

Construct Cronbac CVE EA WB CS EFF BA BL CSA RI

h Alpha
(∞)
Emotional Appeal .924 .86 .92
Website Design .934 .88 .922 .93
Customer Service .934 .83 .938 .928 .91
Efficiency .946 .82 .932 .933 .931 .90
Brand Awareness .956 .85 .924 .941 .933 .946 .92
Brand Loyalty .947 .90 .910 .934 .937 .918 .917 .94
Customer Satisfaction .904 .83 .888 .943 .896 .891 .920 .914 .91

Repurchase Intention .956 .91 .911 .948 .942 .918 .926 .940 .917 .95

 REGRESSION ANALYSIS

Regression analysis is carried out using the ANOVA table. In order to draw a conclusion from our study,
it is used to assess the hypothesis and determine how IV affects DV. We also use an ANOVA table to
determine the Goodness of Fit of our conceptual model. if an ANOVA's F value is higher than 3.86. It
shows how well the model corresponds. The R-square illustrates the variation in DV brought on by each
IV. It should be higher than 30%. Beta describes how much a change in IV of one unit will influence DV.
The unaccounted-for change in DV brought on by other IVS not examined in our study is represented by
error. The foundation for hypothesis testing is the sigma value. The hypothesis is rejected if the sigma
value is greater than 5%. The t value must be greater than 1.96 for the hypothesis to be accepted.
 Coefficientsa
Standardized
Unstandardized Coefficients Coefficients

Model B Std. Error Beta t Sig.

1 (Constant) .064 .073 .884 .379

Ep -.034 .076 -.035 -.447 .656

WD .271 .091 .286 2.978 .004

CS .330 .089 .327 3.707 .000

EFF .015 .087 .015 .169 .866

BA .014 .087 .014 .155 .877

RI .192 .073 .211 2.634 .010

BL .159 .068 .177 2.326 .022

a. Dependent Variable: CSA

ANOVAa
Model Sum of Squares df Mean Square F Sig.
1 Regression 184.507 7 26.358 243.242 .000b
Residual 12.678 117 .108
Total 197.186 124
a. Dependent Variable: CSA
b. Predictors: (Constant), BL, Ep, RI, EFF, CS, BA, WD

F (7,117), 243.242 P<0.05 r2=.936

 H1a: The assessment of a website’s emotional appeal is positively related to luxury brand
awareness. (rejected)

H1b: The assessment of a website’s design is positively related to luxury brand awareness.
(rejected)

H2a: The assessment of a website’s emotional appeal is positively related to luxury brand
loyalty. (rejected)

H2b: The assessment of a website’s design is positively related to luxury brand

loyalty(accepted)

 MEDIATION ANALYSIS

The relationship between emotional appeal and customer satisfaction is significantly mediated by two
mediating variables in this study: brand loyalty and brand awareness. Through the Mediating Variable
(Me), the indirect effect of IV (x) on DV (y) is known as mediation. There are two different kinds of
mediation. Partial Mediation is the first type; It occurs when, despite the indirect effect, the direct effect
continues to be significant. Full Mediation is the second variety; It occurs when the indirect effect
outweighs the direct effect. The results of our SPSS-based mediation analysis are shown in the following
attachment:

Brand Awareness:

Model Summary
Change Statistics
Adjusted R Std. Error of the R Square
Model R R Square Square Estimate Change F Change df1 df2 Sig. F Change
a
1 .379 .144 .130 1.17631 .144 10.252 2 122 .000
b
2 .914 .835 .831 .51857 .691 506.761 1 121 .000
3 .939c .882 .878 .44019 .047 47.922 1 120 .000
a. Predictors: (Constant), Age, Gender
b. Predictors: (Constant), Age, Gender, Ep
c. Predictors: (Constant), Age, Gender, Ep, BA

Coefficientsa
Standardized
Unstandardized Coefficients Coefficients 95.0% Confidence Interval for B
Model B Std. Error Beta t Sig. Lower Bound Upper Bound
1 (Constant) 2.036 .375 5.430 .000 1.294 2.778
Gender -.129 .211 -.051 -.613 .541 -.548 .289
Age .393 .088 .374 4.469 .000 .219 .567
2 (Constant) .190 .185 1.027 .306 -.176 .555
Gender -.017 .093 -.007 -.184 .854 -.202 .168
Age .077 .041 .074 1.872 .064 -.004 .159
Ep .850 .038 .886 22.511 .000 .775 .924
3 (Constant) .029 .158 .184 .854 -.284 .343
Gender .019 .079 .008 .244 .807 -.138 .177
Age .068 .035 .064 1.930 .056 -.002 .137
Ep .348 .079 .363 4.403 .000 .192 .505
BA .550 .079 .570 6.923 .000 .393 .708

Brand Loyalty
Model Summary
 Coeffecient Change Statistics
Adjusted R Std. ErrorStandardized
of the R Square
Model R Unstandardized
R Square Coefficients
Square Coefficients
Estimate Change F Change df195.0% Confidence
df2 Interval
Sig. for B
F Change
Model B Std. Error Beta t Sig. Lower Bound Upper Bound
1 .379a .144 .130 1.17631 .144 10.252 2 122 .000
1 (Constant)b 2.036 .375 5.430 .000 1.294 2.778
2 .914 .835 .831 .51857 .691 506.761 1 121 .000
Gender c -.129 .211 -.051 -.613 .541 -.548 .289
3 .947 .897 .893 .41218 .062 71.521 1 120 .000
Age .393 .088 .374 4.469 .000 .219 .567
a. Predictors: (Constant), Age, Gender
2b. Predictors:
(Constant) .190Ep
(Constant), Age, Gender, .185 1.027 .306 -.176 .555
Gender
c. Predictors: -.017Ep, BL
(Constant), Age, Gender, .093 -.007 -.184 .854 -.202 .168
Age .077 .041 .074 1.872 .064 -.004 .159
Ep .850 .038 .886 22.511 .000 .775 .924
3 (Constant) .102 .147 .693 .490 -.189 .393
Gender .026 .074 .010 .352 .725 -.121 .173
Age .035 .033 .034 1.064 .290 -.030 .101
Ep .397 .061 .413 6.461 .000 .275 .518
BL .494 .058 .548 8.457 .000 .378 .609
a. Dependent Variable: CSA

Brand Loyalty is also significant due to its p0.05 and B value of.494; However, because IV has a
significant impact on both of these mediations, they are only partial. The following are the mediating
values: Brand Awareness has a p0.05 and a B value of.550

H3: Luxury brand awareness is positively related to online customer satisfaction. (accepted)

H4: Luxury brand loyalty is positively related to online customer satisfaction. (accepted)

H5: Online customer satisfaction is positively related to brand loyalty. (accepted)

 Conclusion

Given that everything in this digital age is moving online, retail companies must update the
appearance of their websites if they want to stay competitive. The online luxury market can boost
sales by allowing more buyers to try out a brand. The words "phygital" combine the terms
physical and digital, which both relate to offline and online locations. By fusing the convenience
of online purchasing with the advantages of conventional distribution channels, luxury brands
can benefit from offering a more refined and richer customer experience. The main objectives of
this study are to first confirm the effects of luxury brand websites on the growth of brand
awareness and brand loyalty. The second goal of this study is to determine whether brand loyalty
and recognition, which are brought about by favourable website qualities, lead to customer
satisfaction with online purchases and repurchase intentions. Last but not least, this study makes
an effort to describe qualities that can deliver an ideal brand experience tailored to changing
client preferences and enhance understanding of the always changing online luxury market
environment. The findings demonstrate that a luxury brand's website's excellence increases brand
loyalty, resulting in customer satisfaction and repurchase intention. Only a few CBBE
characteristics positively influence repurchase intention via the luxury brand website, and not all
website features sufficiently aid in the growth of the luxury brand's brand equity. The research's
conclusions are useful. High-end enterprises can develop effective strategies to meet the needs of
wealthy online buyers using the study's findings. Additionally, luxury brands can use the study's
findings to create website development strategies that enhance their brand assets.
 RECOMMENDATION:

THE FOLLOWING ADVICE IS FOR PROFESSIONALS, PARTICULARLY THOSE WHO

MARKET AND SELL LUXURY GOODS AND SERVICES ONLINE. To begin with, this
study offers managers fresh perspectives on how to enhance customer service on their websites
in order to draw in more high-end customers. Luxury brands' value, such as exclusivity and
originality, may not be completely appreciated at online retailers as opposed to traditional stores
because it is so simple to purchase them there. However, managers can increase customers'
positive responses to the premium brand by emphasising the emotional appeal (such as content,
message, and story) and customer service (such as availability, friendliness, problem-solving,
and expert assistance) sections of the website.

LIMITATIONS:

The main limitations of our study are the time constraint, as we had only two months to conduct
our research, the fact that the majority of our respondents were undergraduate students just like
us and that we were unable to gather data from a variety of sources, which prevented us from
generalising our findings to the entire population. Second, because the data was gathered online,
it is impossible to know with certainty if the responses provided by respondents are correct or
not. There can be additional factors that affect the branding approach CBBE uses to analyse
consumer behaviour.