the role of brand love in mediating the effect of brand experience on brand loyalty and willingness to pay at a premium price

VIETNAM NATIONAL UNIVERSITY — HO CHI MINH CITY UNIVERSITY OF ECONOMICS AND LAW SCIENTIFIC RESEARCH REPORT 2024 THE ROLE OF BRAND LOVE IN MEDIATING THE EFFECT OF BRAND EXPERIENCE ON BRA

VIETNAM NATIONAL UNIVERSITY — HO CHI MINH CITY

UNIVERSITY OF ECONOMICS AND LAW

SCIENTIFIC RESEARCH REPORT

2024

THE ROLE OF BRAND LOVE IN MEDIATING THE EFFECT OF BRAND EXPERIENCE ON BRAND LOYALTY AND WILLINGNESS TO PAY (AT A PREMIUM PRICE):

A CASE STUDY OF UNIVERSITY STUDENTS IN HO CHI MINH CITY

FOR SNEAKER BRANDS

Linh vuc khoa hoc: Economics

Chuyén nganh: International Economics - Business Administration - Marketing

4 Phan Hoang K214100768 Business Member 0834442679 khorpha21410ca

5: Le Nhat Minh K214101931 Business Member 0335439854 hanglnm2l4l0ca

ĐẠI HỌC QUỐC GIA TP.HCM

TRƯỜNG ĐẠI HỌC KINH TẺ - LUẬT

BAO CAO TONG KET

DE TAI NGHIEN CUU KHOA HOC SINH VIEN NAM 2024

THE ROLE OF BRAND LOVE IN MEDIATING THE EFFECT OF BRAND EXPERIENCE ON BRAND LOYALTY AND WILLINGNESS TO PAY

(AT A PREMIUM PRICE):

A CASE STUDY OF UNIVERSITY STUDENTS IN HO CHI MINH CITY

FOR SNEAKER BRANDS

Đại diện nhóm nghiên cứu Giảng viên hướng dẫn Chủ tịch Hội đồng

Lãnh đạo Khoa/Bộ môn/Trung tâm

(Ky, ho tên)

2.1.1 Brand Experience Definition

2.1.1.1 The definition of brand experience

2.1.1.1.1 Behavioral Experience

2.1.1.1.2 Intellectual Experience

2.1.1.1.3 Affective Experience

2.1.1.1.4 Sensory Experience

2.1.2 Brand Loyalty Definition

2.1.3 Willingness to Pay Definition

2.1.4 Brand Love Definition

2.2 Overview of Previous Research

2.3 The Proposed Research Model

2.3.1 The Foundations for Proposed Research Model

2.3.2 Explain The Factors Composing The Research Model

2.3.2.1 Brand Experience

2.3.2.2 Brand Love

2.3.2.3 The Mediator Role of Brand Love

2.3.2.4 Brand Loyalty and Willingness to Pay A Premium Price

Chapter Summary

CHAPTER 3: RESEARCH DESIGN AND METHODS

3.1 Research Design Overview

3.2 Sampling design

3.2.1 Sample characteristics

3.2.2 Sample size

3.3 Instrument design

3.3.1 The measurement scales’ format

3.3.2 The measurement scales’ details

3.3.2.1 Rough Scale Construction

3.3.2.2 Scale adjustment

3.3.2.3 Finalized scale after adjustment

3.4 Data collection

3.5 Data cleaning and aggregating

3.6 Description of research variables

3.7.4 Pearson Correlation Analysis

3.7.5 Simple Linear Regression Analysis

3.7.6 Structural Equation Model Analysis

4.1.1.1 Gender

4.1.1.2 Year in school

4.1.1.3 University

4.1.1.4 Income

4.1.1.5 Favorite sneaker brand

4.1.1.6 The frequency of purchasing sneaker

4.1.2 Descriptive data analysis results

4.1.2.1 Encoding of observed variables

4.1.2.2 Descriptive data analysis results

4.2.1 The Cronbach's Alpha coefficient of the variable "Brand Experience" 4.2.1.1 The variable group "Behavioral Experience"

4.2.1.2 The vanable group "Intellectual Experience"

4.2.1.3 The vanable group Affective Experience

4.2.1.4 The variable group Sensory Experience

4.2.2 The Cronbach's Alpha coefficient of the variable "Brand Love"

4.2.3 The Cronbach's Alpha coefficient of the variable "Brand Loyalty" 4.2.4 The Cronbach's Alpha coefficient of the variable "Willingness to pay' 4.3 Exploratory Factor Analysis (EFA)

4.3.1 Exploratory Factor Analysis (EFA) for the dependent variable "Brand Experience"

4.3.2 Exploratory Factor Analysis (EFA)

4.4, Pearson Correlation

+

4.5 Simple Linear Regression Analysis

4.5.1 Correlation between variables in 'Brand Experience’

4.5.2 Correlation Between Variables in the Model

4.6 Structural Equation Model Analysis

5.4 Limitations and Future Directions

LIST OF FIGURES

1 | Figure 2.1 Model examines the influence Brand satisfaction, Brand 36 experience, Brand trust to Brand Loyalty by Brand Love

2 | Figure 2.2 Model examines effects of Brand Experience to Customer 37 Loyalty and Customer Satisfaction through Brand Love

3 | Figure 2.3 The model examines the influence of Brand experience on 38 Brand Loyalty through Brand Love and Brand Trust

5 | Figure 3.1 Overview of research design and execution steps 47

7 | Figure 4.2 Descriptive statistics for Year in school 72

LIST OF TABLES

1 | Table 2.1 Summary of Definitions from Previous Researches 33, 34,35

2 | Table 3.1 Description of the 5-point Likert scale 49

9 | Table 3.8 Willingness to pay Premium Price items 54

11 | Table 3.10 Finalized scale of behavioral experience factors influencing 56 Vietnamese sports shoes purchase experience of students in Ho Chi

in Ho Chi Minh City

19 | Table 4.1 Descriptive statistics for University 73, 74, 75

20 | Table 4.2 Descriptive statistics for Favorite sneaker brand 76,77

21 | Table 4.3 Descriptive statistics for The frequency of purchasing Sporty 78 shoes

22 | Table 4.4 Descriptive data for Encoding of observed variables 79, 80, 81

23 | Table 4.5 Descriptive data for survey variables 82, 83

24 | Table 4.6 Cronbach’s alpha values of Brand Love 85

25 | Table 4.7 Cronbach’s alpha values of Brand Loyalty 86

26 | Table 4.8 The Kaiser-Meyer-Olkin (KMO) Test values of Brand 87 Experience

27 | Table 4.9 The Eigenvalue and Explained Variance Ratio values of Brand Experience 88

Table 4.10 The Factor Analysis Results of Brand Experience

Table 4.11 The Kaiser-Meyer-Olkin (KMO) Test values of Model

Table 4.12 The Eigenvalue and Explained Variance Ratio values of

Model

Table 4.13 The Factor Analysis Results of Model

Table 4.14 The Pearson Correlation Results

Table 4.15 Simple Linear Regression Analysis of Behavioral Experience

— Brand Experience

Table 4.16 Multicollinearity test of Behavioral Experience — Brand

Experience

Table 4.17 Simple Linear Regression Analysis of Intellectual

Experience — Brand Experience

Table 4.18 Multicollinearity test of Intellectual Experience — Brand

Table 4.23 Validity and Reliability test results of Correlation between

variables in 'Brand Experience’

Table 4.24 Simple Linear Regression Analysis of H1

Table 4.25 Multicollinearity test of H1

88, 89

90 90,91 92,93

Table 4.26 Simple Linear Regression Analysis of H2

Table 4.27 Multicollinearity test of H2

Table 4.28 Simple Linear Regression Analysis of H3

Table 4.29 Multicollinearity test of H3

Table 4.30 Simple Linear Regression Analysis of H4

Table 4.31 Multicollinearity test of H4

Table 4.32 Simple Linear Regression Analysis of H5

Table 4.33 Multicollinearity test of H5

Table 4.34 Simple Linear Regression Analysis of H6

Table 4.35 Multicollinearity test of H6

Table 4.36 Validity and Reliability test results of Correlation Between

Variables in the Model

Table 4.37 Table of SEM Model

Average Variance Extracted Brand Experience Behavioral Experience Brand Love Brand Loyalty Composite Reliability Covariance-based SEM degrees of freedom Exploratory Factor Analysis

Income

Intellectual Experience Kaiser-Meyer-Olkin Mean Square Observe The PLS-SEM Multigroup analysis Partial Least Squares Structural Equation Modeling

ACKNOWLEDGMENT First of all, the authors would like to express our sincerest and deepest thanks to the lecturers in the Faculty of International Economics and Business Administration, in particular, and teachers at the University of Economics and Law - Vietnam National University Ho Chi Minh City, for their invaluable guidance and support throughout this research project In particular, the group would like to express their deepest gratitude to the instructor, Mrs Huynh Thuy Tien, who supported us wholeheartedly and extremely enthusiastically in the research process Her insightful feedback and continuous support throughout the research process were crucial in shaping this project We also extend our appreciation to the experts in the relevant field who generously shared their knowledge and expertise Their valuable insights and contributions significantly enriched our research and helped us gain a deeper understanding of the topic

We acknowledge that limitations, such as those related to data collection, processing capabilities, and our own experience level, may have resulted in some shortcomings We hope

to receive suggestions from teachers so that we can learn from our experience and better complete scientific research in the future We are committed to continuous improvement and believe that constructive criticism will play a crucial role in our academic development

DECLARATION The authors want to assure you that our research on "The Role of Brand Love in Mediating The Effect of Brand Experience on Brand Loyalty And Willingness To Pay A Premium Price: A Case Study of University Students in Ho Chi Minh City For Sneakers Brands" is entirely original We conducted this research independently under the guidance of our instructor, Mrs Huynh Thuy Tien All data used in the study is properly sourced and cited according to academic research guidelines The figures and results presented are accurate and truthful Our analysis is honest and objective, and these findings have not been published elsewhere We confirm there is no plagiarism or duplication of existing research We take full responsibility for the research and its originality If any plagiarism be found, we take full responsibility for our research.

ABSTRACT This study aims to examine the intricate interplay between brand experience, brand love, brand loyalty, and willingness to pay a premium price among university students in Ho Chi Minh City, with a focus on sneaker brands Embracing the notion of brand love as a strategic element in brand management, our research aims to elucidate the pathway by which positive brand experiences influence the formation of brand love, subsequently impacting brand loyalty and the propensity to pay a premium Firstly, it seeks to unravel the influence of brand experience on the development of brand love Secondly, it aims to dissect the significant relationships linking brand love, brand loyalty, and the willingness to pay a premium Finally, the study endeavors to uncover the mediating role of brand love in the relationships between brand experience and brand loyalty, as well as the willingness to pay a premium By delving into these intricate relationships, this research strives to enhance our understanding of how brands can hamess positive experiences to nurture brand love, thereby bolstering customer loyalty and purchase value Moreover, it contributes to the evolving comprehension of brand love's pivotal role in shaping consumer behavior, particularly within the realm of fashion clothing, among university students in Ho Chi Minh City

Key words: Brand Experience, Behavioral Experience, Intellectual Experience, Affectual Experience, Sensory Experience, Brand Love, Brand Loyalty, Willingness to Pay,

Sneakers, Sport Shoes

CHAPTER 1 NTRODUCTION

1.1 Rationale

In an increasingly interconnected world, businesses face heightened competition and a proliferation of product and service choices (Mahir et al., 2021) According to Mahir (2021), the centrality of the brand to customer loyalty has become a key topic in contemporary discussions, with sustaining customer partnerships recognized as integral to business success Within a fiercely competitive market, the establishment and maintenance of customer loyalty have been emphasized as essential (Al-Suraihi et al., 2020)

Brand loyalty, a key factor enabling informed purchasing decisions and deterring customers from switching to competing brands, is underscored for its potential to bring substantial value to businesses (Suryawardani et al., 2020; Sarwar et al., 2021) Loyal customers are the backbone of any business, driving not only repeat purchases but also greater financial security Unlike price-sensitive consumers who prioritize the lowest cost, loyal customers are more willing to pay a premium for the products or services they value This demonstrates the trust and positive perception they hold for the brand, making them less likely to be deterred by price increases and more likely to remain loyal even in a fluctuating market The importance of brand loyalty is further accentuated by its potential to reduce marketing expenses, augment trade and provide businesses with the necessary time to respond to competitive threats (Sarwar et al., 2021) The development of brand loyalty, as argued by P.S Coelho et al (2018), necessitates a belief in the brand, highlighting the psychological connection between consumers and the brands

While scholars have long investigated consumers’ attitudes toward brands, recent attention has shifted towards understanding consumers’ emotional connection or "brand love” for brands (Batra, Ahuvia, and Bagozzi, 2012) Defined by Carroll and Ahuvia (2006) as the passionate emotional attachment a satisfied consumer harbors for a particular brand name, brand love transcends mere satisfaction and encompasses hedonic products and brand

self-expression (A Coelho et al., 2018) This emotional and passionate bond between consumers and brands has sparked heightened academic interest, with research intensifying in the extant literature (e.g., Albert, Merunka, and Valette-Florence, 2008; Huber, Meyer, and Schmid, 2015; Sarkar and Sreejesh, 2014)

Given that brand love is rooted in emotional and passionate consumer-brand relationships, it can be strengthened through experiential factors, particularly brand experience (Roy, Eshghi, and Sarkar, 2013) According to Brakus (2009) and Iglesias (2011), brand experience, considered a vital contributor to customer brand satisfaction, plays a crucial role in influencing customer satisfaction levels, brand loyalty, and even willingness to pay a premium price (Roy, Eshghi, and Sarkar, 2013; Carroll and Ahuvia, 2006)

This study aims to explore the mediating role of brand love in the relationship between brand experience and brand loyalty, as well as the willingness to pay a premium price There are a lot of reasons why sneakers could be a good target for a business focused on university students in Ho Chi Minh City Firstly, Students are often involved in physical activities, whether it's gym class, sports teams, or just being on their feet all day between classes Sneakers provide the proper support and stability to avoid mjuries during these activities Secondly, their feet are still growing and developing Proper footwear is important to ensure healthy foot development and prevent future problems Finally, Sports shoes have become a major fashion trend, especially among young people This can make them an attractive choice for students who want to look stylish and feel comfortable Here, we examine whether positive brand experiences lead to the development of brand love, which in turn strengthens brand loyalty and increases consumers’ willingness to pay a premium price Acknowledging brand love as a strategic construct in brand management (Kohli, Melewar, & Yen, 2014), the study's objectives are threefold Firstly, it seeks to examine the influence of brand experience

on brand love Secondly, it aims to investigate the significant relationships between brand love, brand loyalty, and the willingness to pay a premium price Finally, the study endeavors

to explore the mediating role of brand love in the relationships between brand experience and brand loyalty, as well as willingness to pay a premium price By investigating these

relationships, this study aims to contribute to the understanding of how brands can leverage positive experiences to cultivate brand love and ultimately drive stronger customer loyalty and higher purchase value and contribute to the evolving understanding of brand love as a pivotal factor in shaping consumer behavior in the context of sneakers among university students in Ho Chi Minh City

1.2 Research Purpose

Previous research tends to overlook the complexities of brand experience and brand loyalty, by treating them as a single construct (Brakus et al., 2009; Ding and Tseng, 2015; Olsen et al., 2013; Stokburger-Sauer et al., 2012) This approach might overlook their distinct, yet significant dimensions, potentially leading to inaccurate or incomplete results According to Ferreira, P., Rodrigues, P., & Rodrigues, P 2019, they intended to present the results of a study conducted on fashion retail brands The main goal was twofold: on the one hand illustrate the relation between brand experience and brand love; on the other hand, examine the love satisfaction-loyalty relationship The results show that brand experience can

be a strong predictor of brand love, but brand experience dimensions do not all have the same effect on brand love Also, the satisfaction-loyalty relation can be best explained when brand love functions as an antecedent of this relation However, brand experience is considered one important antecedent of brand love, as the results demonstrate, it should be noted that other antecedents should be examined, since the meaning creation, elaboration and reinforcement processes are not limited to the experience context Also, there are other feelings, besides love/passion, that deserve further investigation For example, negative feelings or “the dark side” of consumer brand relationships should be further investigated (Fetscherin and Heinrich, 2014) The present study was conducted on a single retail brand, which can make generalizations a cautious task Also, data was collected in only one of the stores Although this was the major store of the brand and with greater consumer movement, results maybe affected by the specific store environment

According to Han, T L., & Choi, D (2019), they conducted to provide insights mto

young female consumers’ perception of fashion brand love as they are recognized as a critical market segment by many fashion companies (Bush et al 2004) A study examining shopping experience of Generation Z consumers (born between 1995 and early 2010s) suggested that self-expressiveness is a critical feature to them because they strongly value the opportunity to express and communicate something about their self-image (Kapusy and Logé 2017) However, the most critical limitation lies in the small sample size The sample of the present study only involved 110 female university students, which may limit the generalizability of our results Further research needs to be carned out using a larger and more heterogeneous sample to investigate diverse consumer segments and identify varying results based on geographic and demographic characteristics of consumers The specific details of this gap remain unclear, and it continues to spark heated debate around the world This lack of clarity

is further amplified by the limitations of existing research, particularly within the Vietnamese market and the fashion shoe industry Here, a dearth of studies specifically focused on this issue hinders our understanding of the local context and its potential nuances

Therefore, we wanted to take an in-depth look at our model elements to explore the gap that exists between brand experience and brand loyalty In addition, the survey was also conducted on a larger sample for research purposes Moreover, we also research sensory experiences, affective experiences, intellectual experiences and behavioral experiences

(1) Is there a relationship between brand experience, brand love, loyalty, and willingness to pay at a premium price?

(2) How will the levels of brand loyalty and willingness to pay a premium price be

affected by the presence or absence of brand love as a mediator?

1.3.1 General Objectives

This study aims to investigate the effect of Brand Experience, Brand loyalty, Willingness to pay premium price on Brand love for students in Ho Chi Minh City From there, focus on exploring the impact of factors in this relationship to make realistic

assessments

1.3.2 Detail Goals

In this study, the research group aim at the following specific objectives:

- We synthesize theories and propose research models to evaluate the impact of Brand Experience, Brand loyalty, Willingness to pay premium price and Brand love

- We propose policy implications to help promote Brand Experience, Brand Loyalty, Willingness to pay a premium and Brand love including financial support, training, consulting for businesses, and encouraging the adoption of high quality standards international standards on quality management and customer service, raismg consumer awareness of rights and building a legal system to protect consumers; Handle unfair competitive behavior, create a fair business environment, support businesses 1n building brands and encourage participation in trade promotion

- Since then, we have controlled the prices of essential goods, limited unreasonable price increases, raised the minimum wage, per capita income, created jobs and enhanced social security; Encourage businesses to participate in social activities, protect the environment and provide incentives for businesses to participate, raise awareness of the importance of business ethics and encourage the building of an ethical corporate culture 1.4 Research Methods

This study explores how consumers in Ho Chi Minh City engage with sneaker brands Popular sneaker brands today also focus on building brand personality and creating a unique personality in the minds of consumers This study was conducted in Ho Chi Minh City The

questionnaire was prepared in English and then translated into Vietnamese Translation was carefully performed to ensure that there was no bias in the translation process

This is owed by data collection to test the hypotheses We distributed the online survey

- Google Form to students of universities in Ho Chi Minh City

In the data, we had 273 completed questionnaires for further analysis Descriptive analysis of gender characteristics showed that there were 90 (32.97%) males and 183 (67.03%) females in the total sample of 273 Third-year students accounted for the majority with 36.63%, followed by second-year students with 31.87% of the total More than half of the respondents (69.6%) in this study were students from UEL (University of Economics and Law) and the rest were from other universities in Ho Chi Minh City Most of the respondents had an income of 3 to under 5 million per month with 110 people (40.29%) Nike was the most chosen sneaker brand with 32.97%

In the data analysis method, Cronbach's Alpha, exploratory factor analysis (EFA) and structural equation model (SEM) were employed to test the model by using Stata 14 1.5 Contribution, implication of research

In terms of scientific contributions, the study expands the research model by incorporating the factor of "brand love” into the relationship between brand experience and brand loyalty This addition clarifies how brand experience influences brand loyalty and underscores the important role of brand love in driving both loyalty and willingness to pay among customers Furthermore, the research contributes to the development of theory regarding brand loyalty and brand love, offering insights that can be used to construct new theoretical models of consumer behavior

Regarding practical significance, the research provides valuable insights for businesses seeking to build and maintain brand loyalty Companies can utilize the research findings to develop effective marketing strategies aimed at attracting and retaining customers By understanding the importance of brand love, businesses can create unique and meaningful

brand experiences to evoke love and attachment from customers, thereby strengthening customer engagement and loyalty

Additionally, the insights from this research can help businesses enhance their overall business performance By applying the findings, companies can bolster brand loyalty, attract new customers, and increase revenue Ultimately, the study offers actionable guidance for businesses to improve their marketing strategies and foster more effective customer relationships

In summary, this research not only advances our understanding of the impacts of brand experience, brand love, and brand loyalty but also provides practical recommendations for businesses to enhance their marketing efforts and customer relationships

1.6 Report Layout

In the research report has 5 chapters:

Chapter 1: Introduction This chapter provides an overview of the research

Chapter 2: Literature Review and Hypothesis Development This chapter presents a comprehensive summary of previous research on relevant constructs 1n the study

Chapter 3: Research Design and Methods This chapter discusses the data collection process, sampling methodology, participant recruitment, and data analysis procedures Chapter 4: Research Results and Model Analysis This chapter presents and discusses the results obtained from the data analysis process Conclusions about whether the hypotheses are supported or rejected are drawn in this section

Chapter 5: Discussion and conclusion It indicates the implications for various aspects based on the findings of the study This chapter presents the limitations of the study and suggests future research directions

CHAPTER 2: LITERATURE REVIEW AND HYPOTHESIS DEVELOPMENT 2.1 Research Concepts

Research concepts serve as the cornerstone of academic inquiry, providing researchers with the essential framework to explore various phenomena In the following sections, we will discuss scientific concepts studied in previous research By looking at these concepts, we aim to understand the basics of different fields and how previous studies have contributed to our knowledge This exploration helps us see how science has progressed and provides direction for future research

2.1.1, Brand Experience Definition

Brakus et al (2009) describe brand experiences as "subjective, internal consumer responses, sensations, feelings, cognitions, and behavioral responses evoked by brand-related stimuli that are part of a brand's design and identity, packaging, communications, and environments." The stimuli that appear as a component of a brand's identity and design can be

a name, signage, and logo; as part of marketing communications and packaging, brochures, websites, advertisements; and the environment where it is sold or marketed, such as websites, events, and stores (Brakus et al., 2009) The term "brand experience” stems from the principles of experiential marketing, as articulated by Schmitt (1999) Schmitt describes the aim of brand experience as the creation of comprehensive experiences that merge individual encounters into a unified whole This is achieved through various dimensions including sensory perception, emotional response, cognitive engagement, interpersonal connection, and behavioral involvement This implies that certain sensations might be favorable, stronger than others, and bad While some brand encounters are purposeful and hence stay longer than others In the digital context, as outlined by Morgan-Thomas and Veloutsou (2013) digital brand experience is elucidated as "the individual's internal, personal reaction elicited by encounters with an online brand.” These digital platforms provide avenues for real-time brand engagement, prompting customers to interact with the brand actively Over time, emotional

customer-brand ties are solidified, and memories linger in consumers' memory, which can impact consumer loyalty and satisfaction (Oliver, 2014; Reicheld, 1996)

According to Addis and Holbrook (2001) and Prahalad and Ramaswamy (2004), customer experience may be used to develop and modify goods while also providing true value to customers However, the experience might vary Product experiences can be direct via physical touch or indirect through advertising (Hoch & Ha, 1986; Kempf & Smith, 1998) However, direct experience is more successful than advertisements (Wright & Lynch, 1995)

To separate themselves from competition, businesses must offer interesting brand experiences that persuade people to continue purchasing from and staying loyal to the brand Through these brand experiences, people relate to the personality that the company portrays and create strong bonds and relationships with it (Ramaseshan & Stan, 2014) Brand experiences, which serve as a vital source of personal feedback, may instill trust in consumers The idea of trust is derived from personal connection theories in social psychology, where it is regarded as an essential property of any worthwhile social interaction (Morgan and Hunt, 1994)

2.1.1.1 The definition of brand experience

Brand experience encompasses a variety of touchpoints in customers’ consuming behavior, including how they perceive a brand's design and branding, servicescape, packaging, and much more Kang et al (2017) believe BE to be stimulus BE, which fluctuates in strength and intensity, is broadly defined as comprising sensory, intellectual, emotive, and behavioral characteristics, all of which contribute to the overall degree level of BE This multidimensional approach to brand experience has been widely accepted in academics in order to comprehend each stimulus and its impact on customer behavior, also brand experiences are classified as sensory, emotive, behavioral, and intellectual inputs, based

on the integration of results from cognitive scientists, managers, and philosophers

2.1111 Behavioral Experience

The concept of Customer Experience was firstly conceived in the mid-1980s when, along with the mainstream literature in consumer behavior that deemed customers as rational decision makers, a new experiential approach offered an original view to consumer behavior (Holbrook and Hirschman, 1982) The importance of various hitherto neglected variables was re-considered: “the role of emotions in behavior; the fact that consumers are feelers as well as thinkers and doers; the roles of consumers, How important it is to pay attention to the new arising tendencies in customers’ behavior interpretation The study proved that a relevant part

of the value proposed to customers, and actually recognized by them, is linked to experiential features; we found that, regardless of the context, customers want to live positive consumption experiences Living a positive Customer Experience can promote the creation of

an emotional tie between a firm’s brand and its customers

Behavioral experience within the context of consumer-brand interactions plays a pivotal role in shaping consumer perceptions, attitudes, and loyalty towards a brand Brakus, Schmitt, and Zarantonello (2009) define behavioral experience as the physical interactions and behaviors consumers engage in with a brand, including usage, consumption, and other forms of physical interaction Lemon and Verhoef (2016) emphasize the importance of understanding these behavioral experiences throughout the customer journey, as_ they contribute to the overall customer experience and impact future purchase decisions and brand advocacy The dynamic nature of behavioral experiences, as highlighted by Verhoef et al (2009) in their examination of customer experience creation, underscores the need for brands

to continuously engage consumers in meaningful ways to foster positive behavioral experiences Loyalty due to well-nurtured relationships affects loyal customers’ behavioral outcomes, such as repurchase intentions, increased share of wallet, WOM, and lowered acquisition costs; ultimately, the loyalty of the customer should lead to the profitability of the company

2.1.1.1.2 Intellectual Experience

The intellectual dimension referred to the brand’s ability to make customers think Using information processing, brand evaluation is based on new and existing information (Nurcahyo et al., 2011) We propose that interesting cognitive processing, based on existing and new information, may lead to a generation of positive brand evaluation In case a brand enables the public to think, it results in higher cognitive brand experience Thinking in a positive direction will lead to higher brand evaluation and brand loyalty So it is argued that cognitive brand dimension positively influences brand evaluation

For intellectual experiences, we reviewed research on intelligence and cognitive style and literature on creative think-ing and applications of creative thinking in advertising (Smith and Yang 2004)

2.1.1.1.3 Affective Experience

The world of marketing has changed a lot Now, instead of just talking about products, marketers focus on creating emotional experiences for customers (FEEL) These experiences cover everything from feeling good about everyday items to feeling proud about luxury goods

or supporting social causes This shift matches how we now understand customer satisfaction, which includes both thinking and feeling good about a product (Brakus, Schmitt, & Zarantonello, 2009)

Many studies support this change They show that emotions play a big role in making customers happy (Swan and Oliver, 1991), which influences what they buy (Jun et al., 2001) Further backing this idea, Schmitt (1999) said that customer experience is made up of different parts, including emotions Studies by Molinillo et al (2020) and Palaci et al (2019) suggest that emotions and thinking are very important Ahn and Picard (2014) also found that both emotions and thinking affect how well marketing works

In short, research shows that emotional experiences are key for making customers happy and marketing successful By understanding and using emotions wisely, marketers can

build strong connections with customers, make them happy, and reach their goals

2.1.1.1.4 Sensory Experience

Marketing nowadays, we empower consumers’ relationship by optimizing the experience, sensory experience is being used widely and lately According to Petit, et al 2015, sensory experience refers to the situation when customers use their senses to interact with goods and services (1.¢ sight, hearing, smell, taste, touch) One of the most crucial marketing strategies employed by the most prosperous businesses, such as Apple, Starbucks, Singapore Airlines, and others, is sensory branding The company's sales and revenues can rise by fostering brand loyalty through the use of sensory experiences with its brands Research clearly shows that consumers base their purchasing decisions on how they perceive a brand, and that perception is shaped by a variety of stimuli that are absorbed by the senses opinions, buying intentions, and consumption patterns can be influenced by the unique multisensory content of such goods and services (Rupini & Nandagopal, 2015)

Moreira, et al (2017) suggests that in the shoe business, tactile and visual experiences are more prevalent than others Sight is the most powerful sense of all, and when it comes to identifying a brand (logo), it has the upper hand over the other four The dorsal and ventral pathways (what) and vision (where) are the mechanisms in the brain that help us figure out what is where Khanna and Mishra (2012) pointed out that by appealing to human senses, sensory marketing seeks to deepen the bond between a company and its clientele From this perspective, Costa, et al (2012) reported that haptics, olfaction, audition, taste and vision play

an important role in sensory marketing as they can convey abstract, high-level, cognitive representations that influence brand experiences and brand equity, allowing firms to create a closer connection with consumers To sum up, involving sensory experience is very important due to the fact that using various sensory experiences may enhance customer service, which can ultimately lead to improvements in even the strongest brand awareness and image over time (2015)

2.1.2 Brand Loyalty Definition

Keller (1993) defines brand loyalty as a combination of liking a brand and being committed to buying its products or services, even if there are other choices available In fact, loyalty is not a habit, this factor includes the dedication of consumers and the commitment in the relationship between consumers and brands The definition of loyalty is used to refer to repeat purchase, preference, commitment and dedication instead of its meaning of action (Sahin et al., 2011) Brand loyalty shows that consumers have a positive attitude towards a particular brand and tend to buy this brand regularly (Aaker, 1996) Consumers with high loyalty tend to recommend this brand to their relatives or friends Brands cannot ignore they operate in a highly competitive, digital world, where it becomes increasingly difficult to secure customers’ loyalty The goal is to increase customer retention simply by making loyalty more convenient for the customer than non loyalty

Loyalty can be defined as the level of consumer’s attachment to a specific brand even

if most followers of luxury brands in social media may not be actual owners of the brand and may not be able to afford it

The pursuit of customer loyalty is a perpetual one It is more of a journey than a destination There are no clearly-defined guidelines to make loyalty marketing approaches easy in any given industry But understanding the background and evolution of loyalty marketing can help make the strategy definition process a bit easier

2.1.3 Willingness to Pay Definition

Willingness to pay (WTP) is the maximum price a customer is willing to pay for a product or service (Homburg et al., 2005) It’s typically represented by a dollar figure or, in some cases, a price range The minor variations of prices and the corresponding consumer behavior can have notable effects on revenues and profits

Companies often adopt some business rules and follow a strategy that could be denoted as “intuitive” pricing Remarkably, such a behavior is not limited to retailing or

service 1ndustries only, where mark-up-prieIng is still representing the predominant practice

In contrast to what seems to be common practice, managers consider the knowledge of customers’ responses to different prices as a cornerstone of marketing strategies, particularly

in the areas of product development, brand management, value audits, and competitive strategy Such estimates about the importance of WTP and customer value perception can be used to forecast market response to price changes and for modeling demand functions 2.1.4 Brand Love Definition

The foundation of Brand Love is the word love The meaning of the term "love" varies across individuals, and each person interprets it differently (Junaid et al., 2019) Defined by Khan and Zillur (2016) as love is the confluence of human emotions, thought processes, and behaviors that result in intimate, passionate partnerships According to Eklund (2022), human conduct demonstrates a reaction in the form of action, emotion characterizes a feeling of liking, and cognition is founded on profound recognition Emotions of many different sorts make up brand love As an illustration, consider a cheerful disposition, enthusiasm, appraisal, prejudice, attachment, commitment, etc (Batra et al., 2012; Albert et al., 2008) Related studies also show how important these emotional components are for brand loyalty, such as attachment (Johnson et al., 2006)

In an earlier study, it was examined that his research provided empirical validation for the idea that distinct brands have a significant impact on consumer loyalty (Santos and Schlesinger, 2021) According to Yadav and Paul (2021), a strong commitment to regularly making repeat purchases of a favored good or service in the future 1s known as brand loyalty

lable 2.1 Summary of Definitions from Previous Researches

1 Brand Described brand experiences as "subjective, Brakus et al Experience internal consumer responses, sensations, (2009)

feelings, cognitions, and behavioral responses

evoked by brand-related stimuli that are part of

a brand's design and identity, packaging,

communications, and environments.”

The aim of brand experience as the creation of Schmitt (1999) comprehensive experiences that merge

individual encounters into a unified whole

In the digital context, digital brand experience Morgan-Thomas

is elucidated as "the individual's internal, and Veloutsou personal reaction elicited by encounters with an (2013) online brand." These digital platforms provide

avenues for real-time brand engagement,

prompting customers to interact with the brand

customer experience and impact future

purchase decisions and brand advocacy

3 Intellectual The intellectual dimension referred to the Nurcahyo et al., Experience — brand’s ability to make customers think (2011)

Emotions play a big role in making customers

happy, which influences what they buy

Sensory experience refers to the situation when

customers use their senses to interact with

goods and services (1.e sight, hearing, smell,

taste, touch)

The confluence of human emotions, thought

processes, and behaviors that result in intimate,

passionate partnerships

Human conduct demonstrates a reaction in the

form of action, emotion characterizes a feeling

of liking, and cognition is founded on profound

recognition

A combination of liking a brand and being

committed to buying its products or services,

even if there are other choices available

The definition of loyalty is used to refer to

repeat purchase, preference, commitment and

dedication instead of its meaning of action

The maximum price a customer is willing to

pay for a product or service

Swan and Oliver (1991) and Jun et

al (2001) Petit, et al (2015)

Khan and Zillur (2016)

Eklund (2022)

Keller (1993)

Sahin et al (2011)

Homburg et al., (2005)

Figure 2.1 Model examines the influence Brand satisfaction, Brand experience, Brand trust to Brand Loyalty by Brand Love

The valid data of 250 people who use cosmetic products in Hochiminh city demonstrates the important influence of brand experience on other factors such as brand satisfaction, brand trust and brand love of customers in the cosmetics market products where customer experience plays an important role in customer decisions Besides, there is

a positive influence of brand satisfaction, brand trust, brand love on brand loyalty The

research team suggests that in practice, firms should improve possibilities for consumers to experience their products, especially by allowing customers to test their items Furthermore, organizations should create a user community to allow consumers to express their thoughts about the enterprise's goods

2.2.1.2 Research of Nguyet (2020)

Nguyet conducted a research investigating the influence of brand experience to brand loyalty directly and indirectly through the components of brand relationship quality The author used Structural equation modeling (SEM) was used to analyze the data and proposed the following model:

Figure 2.2 Model examines effects of Brand Experience to Customer Loyalty

A sample of 500 consumers was surveyed and the research result indicates that brand experience does not affect directly to brand loyalty, but it plays a positive role in building brand — consumer relationship quality, and brand experience has a influence indirectly to brand loyalty through brand — consumer relationship quality The author suggests that Building quality relationships with customers to create customer loyalty is one of the vital activities of a business Specifically, to create customer relationship quality and brand loyalty, administrators need to create impressive and memorable experiences

about their brand for customers Accordingly, to create a special experience for customers, administrators need to pay attention to factors that stimulate the senses, create emotional attachment, influence reason and influence purchasing decision behavior of customer

2.2.2 International Research

2.2.2.1 Research of Ferreira et al (2019)

Ferreiara et al conducted a research investigating the journey from brand-consumer behavior interaction to relationship durability and stability via brand relationship quality, using a retail fashion brand Specifically, it investigates brand experience as an antecedent

of brand love, and consumer loyalty and happiness as results in the retail sector They proposed the following model:

Figure 2.3 Model examines effects of Brand Experience to Customer Loyalty and

Customer Satisfaction through Brand Love

Based on 560 consumer replies to a face-to-face questionnaire given at a fashion brand retail store This article suggests that brand experience impacts brand love, with a greater prevalence of sensory and emotive aspects Brand love, in tum, impacts client loyalty, both directly and indirectly, via customer happiness This research contributes to

the still understudied link between brand experience and brand love in the retail setting, as well as the necessity to comprehend the satisfaction-loyalty relationship including other factors as predictors

Although brand experience is regarded as a key antecedent of brand love, the findings suggest that other antecedents should be investigated, as meaning development, elaboration, and reinforcing processes are not confined to the experience context In addition to love/passion, there are other sentiments that warrant deeper research

2.2.2.2 Research of Huang (2017)

Huang conducted a research examining the mediating effects of Brand Love and trust on Brand Experience and Loyalty relationships on mobile phones brands This study fills that gap by mvestigating their specific characteristics and impacts on Brand Loyalty and finds out that sensory experience mainly drives customers’ brand trust, while intellectual experience has no effects on Brand Trust Brand love is the main mechanism in developing customers’ behavioral loyalty, so does Brand Trust in shaping their attitudinal loyalty Brand Love and Brand Trust have the mediating effects on the relationships between brand experience and Brand Loyalty

Figure 2.4 The model examines the influence of Brand experience on Brand Loyalty through Brand Love and Brand Trust

A total of 237 valid surveys about mobile phone brands were gathered from respondents aged 18 to 30 and analyzed using the partial least squares method The study ends with the following conclusions The study ends with the following conclusions First, sensory experience is the primary motivator of brand loyalty Second, sensory experience mostly influences customers' brand trust, but cerebral experience has no effect on brand trust Third, brand love is the primary method in establishing customers’ behavioral loyalty, whereas brand trust shapes their attitudinal loyalty Most crucially, this study discovers that brand love and brand trust mediate the link between brand experience and loyalty Finally, brand identity does not significantly attenuate any of these connections in this proposed model

2.3 The Proposed Research Model

2.3.1, The Foundations for Proposed Research Model

Figure 2.4 Hypothesized Model Hypotheses:

HI: There is a positive correlation between Brand Experience and Brand Love

H2: There is a positive correlation between Brand Experience and Brand Loyalty

H3: There is a positive correlation between Brand Experience and Willingness to Pay A

Premium Price

HẠ: Brand Love mediates the positive relationship between Brand Experience and Brand Loyalty

H5: Brand Love mediates the positive relationship between Brand Experience and Willingness to Pay A Premium Price

H6: Brand Loyalty and Willingness to Pay A Premium Price are interrelated

2.3.2 Explain The Factors Composing The Research Model

Through analyzing and evaluating the studies presented in section 2.3, the research group observed that these studies have all proposed significant factor groups and made positive contributions to concluding which factors would impact Brand Love and Brand Loyalty and Willingness to pay a premium price The research team evaluated and selected and proposed additional factors Specifically, Brand Experience (including 4 dimensions), Brand Love, Brand Loyalty, and Willingness to pay a premium price This selection is based

on inheritance and adjustment from previous experimental studies both domestically and internationally However, previous models, although comprehensive, tended to focus more on surveying middle-aged mdividuals and concentrating on various categories Therefore, we set

a new exploration direction towards sneakers products and student subjects to provide more visual research results In conclusion, based on the inheritance and development of previous studies, the research team aims to verify The Role of Brand Love in Mediating the Effect of Brand Experience on Brand Loyalty and Willingness to Pay (at a Premium Price) whether it truly exists, set in the context of universities in Ho Chi Minh City

2.3.2.1 Brand Experience

Brand experience has a strong connection with brand love, examining branded clothing as a stimulus, the function of brand experience as a moderator in defining brand love connections is explored by Joshi and Garg (2021), with many different ways such as brand

experience increases a customer's understanding of the brand by boosting their self-esteem and inspiring brand loyalty (de Oliveira Santini, et al, 2018)

Brand experience includes four dimensions, an entire experience 1s offered by all four brand experience aspects For example, sensory brand experience should result in aesthetic enjoyment, excitement, attractiveness and happiness (Schmitt, 1999), while extreme positive feelings towards a brand might generate mental arousal (Patwardhan and Balasubramanian, 2011) Connecting the intellectual brand experience to the sensory and emotional brand experience Marketers need to realize that brand experience plays a crucial role in the development of brand love since brand love develops gradually (Joshi & Garg, 2021) Furthermore, strong development of brand experience and involvement may lead to higher chance of purchase decision as even in cases when a consumer has a good perception

of the brand or trusts it, their brand experience tends to impact their decision-making process due to their enhanced evaluative capabilities (Lee and Turban, 2001)

2.3.2.2 Brand Love

Brand experience factors have a positive impact on brand love The better the experience with the products or services, the more love consumers will have for the brand (Kazmi & Khalique, 2019) Brand loyalty is significantly and favorably impacted by brand love Similar results were seen in other research that discovered brand love influences brand loyalty (Carroll and Ahuvia, 2006) Deeply brand-loyal consumers will pay a premium for their preferred brand, therefore pricing won't have a big influence on their choices Additionally, to the extent that they compare and assess pricing and optional brands, consumers have a high degree of trust in the cost and estimation of their favorite brands (Keller, 2003) Furthermore, customers’ willingness to pay a premium price is influenced by brand loyalty and positive brand attributes (Dwivedi, Nayeem and Murshed, 2018)

While scholars have identified some similarities between brand love and satisfaction, they acknowledge that these are two distinct constructs Compared to brand satisfaction, brand love focuses on stronger emotions and arises from a long-term relationship between the