Examining the Impact of Brand Experience on Brand Loyalty and Brand Satisfaction . . .

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Examining the Impact of Brand Experience on Brand

Loyalty and Brand Satisfaction: A Study on Fast
Food Centers in India
Dr. Sneha Rajput1, Prof. Paranshuman Parashar2, Prateek Pathak3,
Radhika Agrawal4, Shubhangi Chaturvedi5, Abhishek Jain6 & Jaison Mathew7

ABSTRACT
The main purpose of the study was to be focused on the Brand Experience of Indian Consumers
and its impact on their Brand Loyalty and Brand Satisfaction and to investigate role of
Brand Satisfaction as mediating variable & effect of Brand Experience on Brand Loyalty via
Brand Satisfaction.Non Probability Purposive technique was used to collect the sample of 200
respondents from Gwalior Region Using Standardized questionnaire. Test Like reliability,
validity, Factor analysis, Regression, T-Test, Anova & Sobel was applied for Data analysis.
Cronbach alpha method using SPSS software and the value for Brand Experience (BE), Brand
Satisfaction (BS) and Brand Loyalty (BL) is recorded .720, .778 and .821 respectively. KMO
test for sample adequacy for Brand Experience (BE), Brand Satisfaction (BS) and Brand Loyalty
(BL) was found to be above the threshold value. Brand Experience had ‘Sensory’ as the foremost
factor, Brand Satisfaction had ‘Pleasurable’ as the foremost factor and Brand Loyalty had
‘Continuance Commitment’ as the foremost factor using factor analysis. The result concluded
that Brand Experience Affects Brand Satisfaction as well Brand Loyalty. Along with this
Brand Satisfaction also played the role of mediating variable wherein there was strong effect
of Brand Experience on Brand Loyalty via Brand Satisfaction. There was no effect of gender
and Age on Brand Experience, Brand Loyalty & Brand Satisfaction.
Keywords: Brand Experience, Brand Loyalty & Brand Satisfaction.

1 Assistant Professor, Department of Management, Prestige Institute of Management, Gwalior, M.P.

2 Research Scholar Jiwaji University, Gwalior, M.P.
3 Students, Bachelors in Business Administration, Prestige Institute of Management, Gwalior, M.P.
4 Research Scholar, Banmore, M.P.
5 Research Scholar, Bhind, M.P.
6 Student, Prestige Institute of Management, Gwalior, M.P.
7 Student, Prestige Institute of Management, Gwalior, M.P.
156 Research Perspectives in Social Sciences

INTRODUCTION
India’s Fast food market is expected to reacg US $ 27.57 billion by 2020 and same is
expected to grow at a CAGR of 18% as per the reports. It has been two decade when
Company like McDonald stepped in to Indian Market. Since then it has been continuously
growing at a faster pace. Similarly they have been accepted by Indians very well and
the reason that sounds quite logical is the “Localization” of multinational Brands. By
this localization Indians feel quite comfortable says CNBC. About 10 % of Indian Fast
Food market is organized and they are expected to have 45% of market share. Casual
Dining Restaurants (CDR’s), Non Casual Dining Restaurants (NCDR’s), Quick Service
Restaurants (QSR’s) are expected to grow more faster now.
India, Country where the general public do eat ethnic food also like Panipuri and
Vadapav and this ethnic food market is also expected to grow at a CAGR 31.95% by
2019-2020. From the total population, people from age group 21-30 years eat outside,
and in case of total population 30% is spend on Food and Beverages. Fast food Centers
like Pizzahut, Dominos, Mc Donald serve the combination of Vegetarian and Non
Vegetarian Cuisines as 31% Indians eat Vegetarian food.
There are number of factors that are pushing up the growth of fast food consumption
in India like demographic change, rise in the rate of working females, change in the
life style, FDI’s. Irrespective of all positive aspect of Indian Fast Food Industry, the
biggest challenge remains with these players is to retain the customer and match up
with their ethic taste and preferences. The current study focused on the Experience
of Indian Consumers and its influence on their Loyalty and Satisfaction with special
reference to Fast Food Eatery Stores like Mc Donalds, Dominos, Pizzahut etc.

LITERATURE REVIEW
Senthilkumar (2012), conducted a research in car industry where he confirmed that
Customer satisfaction along with loyalty are the variables that influence the car industry.
He also mentioned that in industrial marketing Service plays an important role. This
study is done on the owners on Tata Car i.e. Indica in Salem and specially those who
have recently purchased the car say in one or two year. He established a relationship
between service quality, product quality, customer satisfaction and loyalty, Can be
measured at different stages, for example, at the beginning of purchase, and one or two
years after purchase. The results confirmed that service quality and product quality
influences customer satisfaction whereas customer satisfaction influences customer
loyalty in car industry.
The study of Agbor (2011) also confirms that there exist a relationship between the
various dimensions of service quality and service quality as well as with customer
satisfaction. Overall result showed that factors specially reliability, responsiveness
and empathy are more related to service quality but in case of customer satisfaction,
reliability and empathy were found to be significantly related and, responsiveness
Examining the Impact of Brand Experience on Brand Loyalty and Brand Satisfaction . . . 157

did not reveal any relationship as a dimension but results were different in case of
individual study of Umeå University, Forex Bank and ICA Ålidhem Centrum
Meirovich and Bahnan (2008) conducted a study on restaurants using two dimensions
of quality i.e. low /high design and low/high conformance, two measures and two
settings. First group( 103 respondents) responded for restaurant and cafeteria of hospital
and Second group (77 respondents) responded for food franchise and family run food
zone after establishing perceived valence and intensity of emotions and found that
there is significant relationship between quality and satisfaction when all possible
combination design and conformance quality were studied.
Nilsson et al. (2001) Researched difference of customer satisfaction in product and in
service organizations using 482 sweden companies. In case of products, it is just the
quality that influence the customer satisfaction where as in case of service organization
it is process and customer that affects customer satisfaction. Study also explored that
employee significantly affects business.
Rizwan et al. (2014), conducted a study using 170 respondents of Nokia from Pakistan
and confirmed that there is a significant relationship between customer satisfaction
and service quality where perceived price acted as a mediating variable. Customer
satisfaction also influences trust and loyalty. Study confirmed that when customer
receives good quality and satisfaction at a reasonable price they will definitely repurchase
the product and will be more loyal towards the brand.
Khan (2012), Kim and Yoon (2004), also supports one part of the study and by stating
that customer satisfaction is one that leads to customer loyalty whereas his study denied
the impact of customer retention on customer loyalty. Alex and Thomas (2015) a study
on coffee shop using variables like product quality, service quality and contextual
experience and identifying their impact on customer perceived value, preference and
repurchase intentions. The result revealed that contextual experience influences customer
perceived value more and not product quality, service quality as comparatively.
Shah and Regassa (2010) stated that Product quality is most important factor in case
of automobile brands. They used data from General Motors, Ford, Chrysler, Toyota,
Nissan, and Honda and users fron Japan and US and confirmed that Japanese car users
are more satisfied as the product quality is very high as compared to US automakers.
Therefore Japanese automakers enjoy high revenue, profits ultimately leading to
economies of scale. Shah (2014), have done a conceptual study wherein he confirmed
that there is an effect of internal marketing’s effect on employee satisfaction which
affects productivity as well as quality which ultimately leads to customer satisfaction. He
mentioned that when firm is spending more on its internal marketing its employees will
be more satisfied and will stay more and will give high quality as well as productivity
this in turn will attract new employees. In Continuation he mentioned that quality will
generate satisfaction and satisfaction will generate customer retention and customer
acquisition which finally leads to high profitability and high sales.
158 Research Perspectives in Social Sciences

Abdullah et al. (2009) conducted a survey on 149 respondents in Kualalumpur,

Malaysia and the results declare that From the findings, there were positive significant
relationship between place/ambience and service quality customer satisfaction and
also relationship between food quality and customer satisfaction was significant, in
addition to this the conceptual study done by Dapkevicius and Melinikas (2009) it
price and quality that generates customer satisfaction.
Sadeghi and Farokhian (2011) using conducted a study wherein performance affected
the customer satisfaction where expected value was taken as a mediating variable. There
was a indirect effect of expected value on cutomer satisfaction and customer loyalty
but the direct effect of unexpected value was only found on customer satisfaction not
on customer loyalty. Study of Kassim et al. (2014),using 150 users of various Mobile
brands, identified the significant direct effect of perceived product quality on brand
loyalty as well indirect effect using customer satisfaction as mediating variable but
in case of perceived value it affected Brand loyalty only via customer satisfaction as
mediating variable and not without it.
Sahin et al (2011) illustrated in their field study confirmed the relationships between
brand experiences, satisfaction, trust and loyalty. They mentioned effects of brand
experiences to build long-lasting brand and customer relationship with brand trust,
satisfaction, and loyalty. The study was conducted on 258 respondents. Dust and
Askarzade (2013) mentioned that it is product brand that is a link between Customer
and company. He identified various variables affecting the clients loyalty like value,
oral advertising, assurance, trust, Perceived Quality and satisfaction.
Thapa (2016) identified that advertisement also influence the consumer to get attracted
towards other product more as compared to promotional tool and 43 % respondent agreed
to this. Rajumesh (2014) conducted a study in Srilanka among 232 FMCG consumers
where he found that Brand Experience is positively related to Brand Loyalty and Brand
Attitude and results also declared Brand Attitude as a mediator between Brand Loyalty
and Brand Experience. He mentioned that When Brand Attitude is controlled, Brand
Experience directly affects Brand Loyalty Malik Et al (2012), examined how service
quality, price and brand image influence customer satisfaction with 165 and the results
indicated 94% variation in service quality, price, and brand image indicating that service
quality, price, and brand image has strong association with customer satisfaction as
beta coefficient was found to be significant at 5% level of significance
Tugrul (2014), examined the past purchase and social media experience on brand’s
perceived social media marketing activities and overall value evaluations. He found that
there is no effect of brand purchase experience on customer experience but definitely
affects brand value .Brand attitude has a significant impact on the perceived social
media marketing activities. One interesting finding highlighted was impact of social
media experiences on social media marketing evaluations. According to him customer
are more interested in some features of Social media sites experience i.e. entertaining,
trendy, customized and word-of-mouth that defined overall brand value. It can be
said that a consumer evaluates a brand more as compared to brand which does not
Examining the Impact of Brand Experience on Brand Loyalty and Brand Satisfaction . . . 159

have any social site. Walter et al (2013) has conducted a research on 57 students in
Canada factor consisting of sensory, affective and intellectual variables was found to be
significant. However, the overall model shows significant influence of brand experience
on consumer loyalty. Brand experience positively influences consumer loyalty.
Cleff et al (2016) done a study on Adidas where they confirmed the model proposed
by Brakus et al (2009) and walter et al (2013) that brand experience has a moderately
high positive correlation to brand personality but same study found a low degree
of correlation between brand experience and consumer loyalty, between brand
personality and consumer loyalty and between brand experience and consumer
satisfaction. Additional finding was brand experience has positive and significant effect
on consumer satisfaction, and Customer satisfaction on customer Loyalty. Chen and
Ma (2016), explored the relationship between brand experience and customer equity
(value equity, brand equity, and relationship equity), and then examine the impact of
different contact points experience i.e. communication contact, physical environment
contact, personnel contact and product usage contact), and different brand experience
dimensions on customer equity. Here product usage contact is the most important
role on influencing customer equity The study also presented moderating effect of
different brand positioning strategies-hedonic and utilitarian on the above mentioned
relationship using sample of 493. Specifically, brand equity, Relationship equity and
value equity is mostly influenced by brand experience.
Awan et al (2014) has conducted a study in Pakistan with a sample of 300 respondents
in Home appliances sector and identified that Brand Performance contributes 33%
towards customer satisfaction Which means there is positive correlation between
customer satisfaction and Brand Performance and Brand Loyalty. Tugrul (2014) at his
concluded research found that those who had faced or had visited the social media
sites are the leaders for the evaluation of the activities of the social media and those
who have attained the experience by visiting the sites or those who are more familiar
to them are the ones who have a more matured level of evaluation of the brand than
those who haven’t visited them at all. They also found the importance of the customers
who have visited the social media sites as they improved the brand value and also to
have a social network on the social or a large platform as the previous visitors of the
brand sites can bring out more fruitful attribute on the table regarding the experience
of the customer as they encounter these sites and also enhance the brand value of it.
Maheshwari at ol (2014) researched on the determinants of brand loyalty: A study
of the Experience-Commitment-Loyalty constructs and as we know that the brand
commitment have been categorized mainly into two i.e. affective and continuance
commitment, it also help in investigating brand experience and brand loyalty continuance
commitment was found to not have any impact on the consumer ’s loyalty towards a
brand it also help in assumed that factors such as price and other available alternatives.
Leelakulthanit and hongcharu ( 2012) researched on the factor influencing smartphone
repurchase and found that brand reputation influence smartphone repurchase in a
positive way followed by beauty of the design Brand uniqueness is helped in creating
160 Research Perspectives in Social Sciences

brand reputation like apple iPhone has it own uniqueness it has a special features it
has its own apple store and blackberry also have their own special features of push
mail for getting e-mail in real time and providing the ease of connecting with friends
who also use blackberry through PIN code by calling or messaging.
Oyeniyi and Abiodun(2009) researched on the switching cost and customers loyalty in
the mobile phone market: the nigerian experience and found that it is most discussed
issues in marketing to explain consumer behavior it also affect the relationship between
customer satisfaction and retention it also help in used to predict consumer behavior
in the mobile telecommunication sector customer satisfaction has positive effects on
the customer retention.
Ahmed (2014) explored that Brand Loyalty is the one and the only tool which is termed
as the last option for any company in the time of some severe competition as the loyalty
changes the face of the any company which can in other words change the fortune
of the company in the market and also it is termed as the output variable. Effect of
service quality, brand trust, customer satisfaction on brand loyalty had provided a
better grip in the midst of companies or customers to recheck the knowledge of each
element which could help in the progressive study of brand loyalty.
Shahbazi & Akareem (2013) found that the respondents had the service quality as
the more prioritized while the brand image and its pricing came second on the list.
Educational qualifications and monthly expenditure did had a direct influence while
the other opted variables had indirect influence. This also had shown that there should
be more stronger implications of managerial activities to have a more sustainable
market for them. Stahl et ol (2014)evaluated and found that the brand equity had a
more meaning led impact on the customer acquisition, retention and profitability.
Brand equity impacted directly or indirectly after even having gained a upper hand
in the sector of marketing activities. It also have been found that the brand equity is
playing the role of a multidimensional as it left its marks on the different effects on
acquisition, retention and profit. Brakus et ol (2009) conducted a research and found
that brand experience had effected directly or indirectly on consumer satisfaction and
loyalty through its association of brand personality. The mindset of the people change
dramatically as they may see or hear about it. Its designing, packaging, communication
all have a straight effect on the study of brand experience.
Choi et ol (2011) conducted a research and found that both brand experience and brand
personality have always a direct effect upon brand prestige, which in turn affected the
brand relationship quality and attitudinal brand loyalty. Attitudinal and behavioral
brand loyalty have been influenced directly or indirectly to the brand relationship
quality. Stan (2015), As the research concluded they found that customer loyalty had
always got the backing of the variables like customer satisfaction, store image etc…
Loyalty which had the support of the other variables with the switching costs had an
effect which altered in between of them as the switching cost’s impact was powerful
towards the brand loyalty as it was in the case of the brand satisfaction. The switching
costs had a slight effect between store image and its loyalty and also in between of the
Examining the Impact of Brand Experience on Brand Loyalty and Brand Satisfaction . . . 161

other two, namely, perceived value and loyalty. Clemes et’ol (2007) researched that
there were many factors like reputation, service quality, customer satisfaction which
have indirectly effected the customers perception towards the bank switching.

OBJECTIVES OF STUDY
• To re standardize measures for evaluating Brand Experience, Brand Satisfaction
and Brand Loyalty.
• To evaluate the underlying factors of Brand Experience, Brand Satisfaction and
Brand Loyalty.
• To evaluate relationship between Brand Experience as Independent variable,
Brand Satisfaction and Brand Loyalty as dependent variables.
• To evaluate the gender differences.
• To evaluate the Income difference

RESEARCH METHODOLOGY
The Study:The study was causal in nature with survey method was used to collect the
data and complete the study. Sampling Design: Population-Sample Population was
from Gwalior region. Sample Frame-Data was collected through personal contacts and
frame was of the consumers who do visit fast food centers like Mc. Donald, Pizzahut,
Dominos. Sample Elements-Individual respondents were the sampling elements.
Sampling Technique- Non Probability Purposive technique was used to collect the
samples. Sample Size- Sample size was of 200 respondents
Tools Used For Data Collection-Standardized questionnaire was used to evaluate the
impact of Brand Experience on Brand Satisfaction and Brand Loyalty. (Brakus Et al
2009, Westbrook and Oliver 1991, Sahina, Zehir and Kitapc 2011)
Tools Used For Data Analysis-The measure was re standardized through computation
of reliability and validity. Factor analysis was applied to identify the underlying factors
of Brand Experience, Brand Satisfaction and Brand Loyalty. Regression was applied to
find out the relationship between of Brand Experience, Brand Satisfaction and Brand
Loyalty. T-Test was applied to find out the gender difference. Anova was applied to
identify the effect of income on all three variables Mediation of Brand Satisfaction was
identified using Sobel Test (Figure 1.)
162 Research Perspectives in Social Sciences

Brand Satisfaction

Brand Experience

Brand Loyalty

Figure 1: Model used in the Study

Hypothesis
H01: There is no effect of Brand Experience on Brand Satisfaction
H02: There is no effect of Brand Experience on Brand Loyalty
H03: There is no effect of Brand Satisfaction on Brand Loyalty
H04: there is no effect of Gender on Brand Experience
H05: there is no effect of Gender on Brand Satisfaction
H06: there is no effect of Gender on Brand Loyalty
H07: there is no effect of Income on Brand Experience
H08: there is no effect of Income on Brand Satisfaction
H09: there is no effect of Income on Brand Loyalty
RESULT AND DISCUSSION
Reliability and Sample Adequacy:
Reliability was checked by Cronbach alpha method using SPSS software and the value
for Brand Experience (BE), Brand Satisfaction (BS) and Brand Loyalty (BL) is recorded
.720, .778 and .821 respectively. The values of cronbach alpha was found to be above
the standard value of .7. Therefore Questionnaire is accepted to be reliable. Along with
Cronbach alpha, KMO test for sample adequacy for Brand Experience (BE), Brand
Satisfaction (BS) and Brand Loyalty (BL) was found to be above the threshold value.
The Significant Bartletts value represents the non formation of identity matrix.

Table 1: Reliability and Sample Adequacy

Variables Cronbach’s Alpha KMO BARTLETT
Chi Sq P
Brand Experience (BE) .720 .697 298.07 .000
Brand Satisfaction (BS) .778 .800 287.43 .000
Brand Loyalty (BL) .821 .844 300.53 .000
Examining the Impact of Brand Experience on Brand Loyalty and Brand Satisfaction . . . 163

Factor Analysis

Table 2: Factor Analysis of Brand Experience

Factor Name Eigen % of Statements Converged
Value Variance
Exp.
1 Sensory 1.660 13.897 BE1(strong impression on my visual sense),
BE12 (comfortable visiting this Brand outlet)
2 Intellectual 1.584 13.198 BE10 (brand stimulates my curiosity and problem
solving)
BE4 (strong emotions for this brand)
3 Affective 1.540 12.829 BE7(brand results in physical experiences)
BE3(brand induces feelings and sentiments)
BE11(brand provides me with the best quality)
4 Behavioral 1.514 12.618 BE6(physical actions and behaviors when I use
this brand)
BE8 (lot of thinking when I encounter this brand)
5 Involvement 1.235 10.294` BE9(brand does not make me think)
BE5 (brand is an emotional brand)

Table 3: Factor Analysis of Brand Satisfaction

S.No Factor Name Eigen % of Statements Converged
Value Variance
Exp.
1 Pleasurable 2.303 32.902 BS1(very satisfied with the service provided by this Fast food brand)
BS3(happy with this Fast food brand)
BS2(satisfied with this Fast food brand)
BS6(right decision when I decided to use this Fast food brand)
2 Overall 1.828 26.120 BS5(brand is usually a very satisfying experience)
Satisfaction BS4 (brand does a good job of satisfying my needs.)

Table 4: Factor Analysis of Brand Loyalty

S.No Factor Name Eigen % of Variance Statements Converged
Value Exp.
1 Continuance 2.644 29.387 BL5(continue to be loyal customer for this Fast food brand)
Commitment BL9(positive things about this Fast food brand to other people)
BL1(buy this Fast food brand in the near future),
BL3 (brand as my first choice in this category),
BL7 (Fast food brand again, if it would be substantially Cheaper )
2 Affective 2.087 BL8(Commercials regarding to competing Fast food brands are
Commitment not able to reduce my interest
in buying this Fast food brand)
BL4(I need that product, I will buy the same Fast food brand)
BL6(willing to pay a price premium over competing products to
be able to
purchase this Fast food brand again
BL2(intend to buy other products of this Fast food brand)
164 Research Perspectives in Social Sciences

Factor Analysis was applied on Brand Experience, Wherein Sensory (Brakus et al, 2009)
was revealed as the foremost factor with the highest eigen value of 1.660 and variance
explained was 13.897, followed by Intellectual (Brakus et al, 2009) with the Eigen Value
of 1.584 and variance explained was 13.198, Third factor was Affective (Brakus et al,
2009) with the eigen value of 1.540 and variance explained was 12.618. the next factor
was Behavioral (Brakus et al, 2009) of Brand Experience was Sensation with the eigen
value of 1.514 and variance explained was 12.168 and the last was Involvement.
In case of Brand Satisfaction, studied by Ragunathan and Irwin (2001), the Foremost
factor was Pleasurable with the eigen value of 2.303 and Overall Satisfaction was the
second factor with the eigen value of 1.828. Brand Loyalty had two factors, Studied
by Maheshwari et al (2014) first was Continuance Commitment with the eigen value
of 2.644 and Affective Commitment with eigen values of 2.087.
Regression analysis was applied between Brand Experience as Independent Variable
and Brand Satisfaction as Dependent Variable. Value of R Square was found to be .459,
Brand Experience explains 45.9% variance in dependent variable Brand Satisfaction . In
other words indicates Brand Experience contribute 45.9% towards Brand Satisfaction.
Value of Durbin Watson was 1.555 which is within range of 1.5-2.5 The model used
for regression has good fit as indicated by F value 141.411 significant at .000 level
of significance indicating a high predictability of model. The relationship between
Brand Experience as independent and Brand Satisfaction as dependent variable is
indicated by standardized coefficient Beta with a value of 0.677. The significance of
beta is tested using T-test and value for t is 11.892 which is significant at 0% level of
significance indicating significant relationship between Brand Experience and Brand
Satisfaction. Anova Analysis was applied to identify the impact of age and gender
on Brand Experience, Brand Satisfaction and Brand Loyalty . But it did not show any
significant impact of both demographic variable on all three variables. Sobel Test
was used to calculate Mediating effect of Brand Satisfaction. Firstly the Regression
between Brand Experience and Brand Satisfaction was applied wherein A=.509 and
SA =.043, Secondly the Regression between Brand Satisfaction and Brand Loyalty was
applied wherein B= .987 and SB= .053. Soble Statistic Value and Arion Statistics Vale
was found to be significant at 0% level of significance

Table 5: Sobel Analysis

Test A B SA SB Test Statistics P
Sobel .509 987 .043 .053 9.98 .000
Arion .509 987 .043 .053 9.97 .000

CONCLUSION
As current study focused on the Brand Experience of Indian Consumers and its
influence on their Brand Loyalty and Brand Satisfaction with special reference to Fast
Food Eatery Stores like Mc Donalds, Dominos, Pizza hut etc. The result concluded
Examining the Impact of Brand Experience on Brand Loyalty and Brand Satisfaction . . . 165

that Brand Experience Affects Brand Satisfaction as well Brand Loyalty. Along with
this Brand Satisfaction also played the role of mediating variable wherein there was
strong effect of Brand Experience on Brand Loyalty via Brand Satisfaction. There was
no effect of gender and Age on Brand Experience, Brand Loyalty & Brand Satisfaction.
The study has strong implication for managers and Society. Although study explains
that managers should try to induce atmosphere that generates Satisfaction and Loyalty,
the study clutches few limitations. The Study or similar can be done on few specific
brand exclusively to get better insights or comparison between brands can be done.
Apart from food eateries any other domain can be undertaken with a larger sample size.

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