Digital Transformation Impact on Brand Innovation Mediated by Customer Experience in Marketing of Fast-Moving Consumer Goods in Nigeria

Abstract

Despite the growing adoption of digital transformation (DT) across industries, research on its impact on brand innovation (BI) in Nigeria’s fast-moving consumer goods (FMCG) sector remains limited. Intense competition and evolving consumer preferences make sustainable BI challenging. Prior studies have examined DT’s effects on customer loyalty and business models, but its specific influence on BI remains underexplored. This study addresses this gap by examining how DT affects BI in Nigeria’s FMCG sector, with customer experience (CX) as a mediator. Using a quantitative approach with data from 203 respondents, analysed via partial least squares-structural equation modelling (PLS-SEM), the results show that DT has no significant direct impact on BI. However, it enhances CX, which positively influences BI. CX partially mediates this relationship, accounting for about 68% of the total effect. This research contributes to the marketing and DT literature by highlighting the indirect pathway through which DT fosters BI. FMCG managers should invest in DT strategies that enhance CX, drive innovative marketing and maintain competitiveness in a dynamic market.