The Influence of Digital Advertising and Customer Engagement on Brand Equity

Abstract

The primary objective is to examine the direct effects of digital advertising and customer engagement on brand equity. In addition, the study investigates the mediating role of customer awareness. Another key aspect of the research is to assess the moderating impact of advertisement quality on these relationships. The study employs a quantitative research design, grounded in a positivist philosophy. A deductive research approach is used to test hypotheses based on existing theories and literature. The target population for this study consists of customers associated with the food market. The study uses the WHO formula for sample size determination, resulting in a sample of 300 participants. Digital advertising is shown to have a positive and significant effect on brand equity. Similarly, customer engagement has a strong positive impact on brand equity, highlighting the importance of building interactive and meaningful relationships with customers. The mediating analysis confirms that customer awareness amplifies the effects of both digital advertising and customer engagement on brand equity. Additionally, the moderating analysis indicates that advertisement quality plays a critical role in strengthening the relationship between digital advertising, customer engagement, and brand equity, demonstrating that high-quality advertisements lead to better brand equity outcomes.