Abstract

Building a favorable sensory brand experience is crucial in services settings to strengthen the competitive position of a brand and its equity. However, little empirical research exists in this area. Additionally, and surprisingly, most of the research on service brand experience neglects the importance of employees. This study investigates the effect of sensory brand experience on brand equity in the banking industry, through customer satisfaction and customer affective commitment. It also examines whether employee empathy moderates the impacts of sensory brand experience on customer satisfaction and customer affective commitment. Based on data collected through a panel of 1739 customers, the hypothesized structural model is tested using path analysis. Results show that sensory brand experience has a positive indirect impact on brand equity, through customer satisfaction and customer affective commitment. Customer satisfaction positively influences customer affective commitment, and employee empathy negatively moderates the relationship between sensory brand experience and customer satisfaction.

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