From brand experience to happiness: exploring the impacts on brand loyalty and price premium

Since the advent of the 21st century, the overemphasis on the utilitarian aspects of products has shifted the interest to the hedonic facets of consumption (Pine & Gilmore, 2011). Experience marketing presents a new approach to address this shift and to achieve long and lasting competitive advantages (Gentile, Spiller & Noci, 2007) and loyalty (Smilansky, 2009). Despite the increasing number and quality of articles addressing brand experience, this research area remains underdeveloped and not as well-established as other marketing constructs, such as consumer attitudes, consumer satisfaction and brand equity (Schmitt & Zarantonello, 2013). More recently, happiness has received attention from marketers, and studies examining happiness in consumer research have also begun to appear (Schmitt, Brakus & Zarantonello, 2015; Bhattacharjee & Mogilner, 2014; Schmitt, 2012; Bettingen & Luedicke, 2009). Further, in a world where social concerns are garnering more insistence, it is argued that brands should contribute to consumers’ happiness through experiences (Schmitt, Brakus & Zarantonello, 2014). The main aim of this study is to model the relationship between brand experience dimensions (sensory, emotional, relational and cognitive) on the one hand and happiness on the other hand through the three orientations to happiness (pleasure, meaning, and engagement) (Peterson, Park & Seligman, 2005), and to examine the influence of happiness on brand loyalty and price premium. Therefore, the current research represents a meeting point between brand experience and happiness—two unique areas in marketing and psychology that are being afforded more importance nowadays (Brakus, Schmitt & Zarantonello, 2012; Carter & Gilovich, 2010; Brakus, Schmitt & Zarantonello, 2009; Peterson, Park & Seligman, 2005). Figure 1 displays the conceptual framework and the suggested hypotheses of the study.