The Role of Emotional Branding on Brand Equity in the Banking Sector: Is Customer Experience a Mediator
Keywords:
Emotional branding, brand equity, customer experience, banking, customer loyaltyAbstract
Objective: This study aimed to determine the effect of emotional branding on brand equity through the mediating role of customer experience in Bank Mellat and Bank Tejarat branches in Mazandaran Province.
Methodology: The study employed a descriptive–survey and applied research design. The statistical population consisted of customers from Bank Mellat and Bank Tejarat branches in Mazandaran. Using multistage cluster sampling and the Morgan table, 384 participants were selected. Data were collected via three standardized questionnaires: the Emotional Branding Scale (Farizi & Harsuvi, 2023), the Brand Equity Scale (Malarvizhi et al., 2022), and the Customer Experience Scale (Waibowo et al., 2020). Reliability was confirmed via Cronbach’s alpha (>0.7), and construct validity was verified through confirmatory factor analysis using LISREL software.
Findings: The results of structural equation modeling indicated a significant positive effect of emotional branding on brand equity (β = 0.27, t = 2.50) and customer experience (β = 0.65, t = 5.89). Customer experience also had a significant positive effect on brand equity (β = 0.42, t = 3.50). Moreover, customer experience mediated the relationship between emotional branding and brand equity (β = 0.27, t = 3.04). Model fit indices were satisfactory (CFI = 0.97, RMSEA = 0.059).
Conclusion: Emotional branding fosters strong emotional connections between customers and banks, thereby enhancing brand equity through improved customer experiences. Customer experience acts as a key mediator, translating emotional engagement into brand loyalty and favorable brand perceptions. The findings highlight the strategic importance of emotional branding initiatives in strengthening competitive advantage within Iran’s banking sector.
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