Effect of Experiential Value on Consumer-Based Brand Equity: An Interactive Device Perspective

Abstract

With every product we buy, there is an associated experience. The better the experiences, the better a user feels about his/her decision to buy and use the product; and the feelings do not stay with the product. They are indeed transferred as brand associations and imagery with the brand of the product, defined as brand equity in the marketing literature. Positive brand equity is critical for the success of a brand as it creates repeat transaction of the user with the manufacturer. It is in this context that this study attempts to understand the relation between different components of user experience and brand equity. Intrinsic and extrinsic values have been taken as components of user experience while association, perceived quality, perceived value, trust and loyalty are elements of brand equity. All the relationships between the different constructs of experience and brand equity were found significant. We also found significant evidence for the hierarchical formation of both user experience and brand equity. The study contributes to the literature of brand experience and how it is critical for brand equity and for the consumer. For marketers, we establish how important it is for them to provide a positive user experiences for their brands to be successful. A proper mix of intrinsic and extrinsic consumption values to the consumer will go every length to convince him/her to stay with the brand.