Impact of Experiential Marketing on Consumer Brand Loyalty: The Mediating Role of Functional Value

Abstract

The purpose of this study is to examine the impact of perceived experiential value on the perceptions of family restaurant customers’ towards the brand, functional value, and ultimate brand loyalty. For this purpose, the implied hypothesis test was applied to a sample size of 342 customers collected via questionnaires from top 20 branded family restaurants in Peshawar city. Multiple regression and mediation analysis were used to test the implied hypothesis. Findings reveal that all dimensions of the experiential marketing, which include service excellence, consumer return on investment, esthetics and escapism, together with the mediating role of functional value strengthen the brand loyalty in family restaurants. Findings suggest that managers of the branded family restaurants should consider the tangible and intangible aspects of their businesses for enhancing the brand loyalty.  They should also invest in creating unique experiences to entertain customers and arouse positive emotions towards the functional value and brand loyalty. They should also develop competitive marketing strategies for enhancing the brand loyalty in the long run.