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Mediation Effect Analysis of Research Variable (TCE)

Besides examining hypothesis by simple regression analysis, this study wants to further investigate whether transcendent customer experience mediates the three routes, of which sense marketing, feel marketing, and relate marketing are the IVs, along with consumer satisfaction, consumer loyalty, and customer-based brand equity being DVs.

Based on the explanation regarding mediation effect, it is stated, “the independent variable must be shown to affect the dependent variable”, “the independent variable must affect the

mediator” and that “the mediator must be shown to affect the dependent variable” (p.1177, Baron and Kenny, 1986). In order to do so, simple regression followed by a binary regression are

operated to compare the change in values between two tables.

The research questions are as the below:

RQ1a: Will TCE mediate the route from sense marketing to consumer satisfaction?

RQ1b: Will TCE mediate the route from sense marketing to consumer loyalty?

RQ1c: Will TCE mediate the route from sense marketing to customer-based brand equity?

RQ2a: Will TCE mediate the route from between feel marketing to consumer satisfaction?

RQ2b: Will TCE mediate the route from feel marketing to consumer loyalty?

RQ2c: Will TCE mediate the route from feel marketing to customer-based brand equity?

RQ3a: Will TCE mediate the route from relate marketing to consumer satisfaction?

RQ3b: Will TCE mediate the route from relate marketing to consumer loyalty?

RQ3c: Will TCE mediate the route from relate marketing to customer-based brand equity?

4.5.1. Investigating the Mediation Effect of TCE on Route of Sense Marketing

The below two tables show the outcome of the simple regression where sense marketing is IV and the other three ones are DVs. Afterwards, a multiple regression was operated where both sense marketing and TCE are IVs and the other three remain as DV.

Table 8. Investigating the Mediation Effect of TCE on Sense Marketing to DVs DV

IV

Consumer Satisfaction

Consumer Loyalty Customer-Based Brand Equity

Sense 0.758*** 0.664*** 0.675***

Adjusted R2 0.573 0.439 0.453

Table 9. Investigating the Mediation Effect of TCE on Sense Marketing to DVs DV

IV

Consumer Satisfaction

Consumer Loyalty Customer-Based Brand Equity

Sense 0.517*** 0.405*** 0.473***

TCE 0.392*** 0.408*** 0.331***

Adjusted R2 0.667 0.534 0.522

(Notes: *p < 0.05; ** p < 0.01; *** p< 0.001)

As the top table has shown, sense marketing has significant effect on consumer satisfaction (0.758***), consumer loyalty (0.664***), and customer-based brand equity (0.675***). In the second table which represents the outcome of multiple regression test, it can be seen that once TCE is entered, both sense marketing and TCE show value of significance, yet the ones

representing sense marketing has slightly decreased (CS=0.517***, CL=0.405***, CBBE=0.473).

According to Hayes, mediation effect can be divided into full mediation and partial mediation, where the former exists when mediator has complete influence and the latter occurs when the mediator has partial influence (Hayes, 2009). Therefore, it is concluded that TCE only show

4.5.2. Investigating the Mediation Effect of TCE on Route of Feel Marketing

The below two tables show the outcome of the simple regression where feel marketing is IV and the other three ones are DVs. Afterwards, a multiple regression is operated where both feel marketing and TCE are IVs and the other three remain as DVs.

Table 10. Investigating the Mediation Effect of TCE on Feel Marketing to DVs DV

IV

Consumer Satisfaction

Consumer Loyalty Customer-Based Brand Equity

Feel 0.789*** 0.728*** 0.691***

Adjusted R2 0.620 0.528 0.476

Table 11. Investigating the Mediation Effect of TCE on Feel Marketing to DVs DV

IV

Consumer Satisfaction

Consumer Loyalty Customer-Based Brand Equity

According to the results from the first table, feel marketing has significant effect on

consumer satisfaction (0.789***), consumer loyalty (0.728***), and customer-based brand equity (0.691***). In the second table which represents the outcome of multiple regression test, it shows that once TCE is entered, both feel marketing and TCE have significance, yet the ones

representing feel marketing has decreased (CS=0.299***, CL=0.271***, CBBE=0.271). Thus, same as the outcome of sense marketing, it is concluded that TCE shows partial mediating effect on the route from feel marketing (IV) to the DVs.

4.5.3. Investigating the Mediation Effect of TCE on Route of Relate Marketing

The below two tables show the outcome of the simple regression where relate marketing is IV and the other three ones are DVs. Moreover, a multiple regression is conducted where both relate marketing and TCE are IVs and the other three remain as DVs.

Table 12. Investigating the Mediation Effect of TCE on Relate Marketing to DVs DV

IV

Consumer Satisfaction

Consumer Loyalty Customer-Based Brand Equity

Relate 0.603*** 0.576*** 0.534***

Adjusted R2 0.362 0.329 0.283

Table 13. Investigating the Mediation Effect of TCE on Relate Marketing to DVs DV

IV

Consumer Satisfaction

Consumer Loyalty Customer-Based Brand Equity

Relate 0.089 0.108 0.144

TCE 0.638*** 0.571*** 0.502***

Adjusted R2 0.501 0.432 0.384

(Notes: *p < 0.05; ** p < 0.01; *** p< 0.001)

According to the results from the first table, relate marketing has shown influence on the DVs (CS=0.603***, CL=0.576***, CBBE=0.534***); however, interestingly, relate marketing doesn't show significant effect on consumer satisfaction (0.089), consumer loyalty (0.108), and

customer-based brand equity (0.144) when TCE is entered together as IVSs (CS=0.638***, CL=0.571***, CBBE=0.502***). Therefore, this study concludes that TCE shows full mediating effect on the route from relate marketing (IV) to the DVs

4.5.4. Summary of Mediation Effect Analysis

This study has operated the mediation regression analysis to investigate the research

questions and has concluded that sense marketing (RQ1a~RQ1c) and feel marketing (RQ2a~RQ2c) have direct influence on the DVs, yet with the mediation of TCE, sense marketing and feel

marketing still have partial mediation effect; Moreover, relate marketing (RQ3a~RQ3c) does not show direct effect on the DVs, yet with the mediation of TCE, it has full mediating effect on the DVs.

Table 14. Summary of Research Questions Results

Research Questions Mediation Effect

RQ1a: Will TCE mediate the route from sense marketing to consumer satisfaction?

Partially supported

RQ1b: Will TCE mediate the route from sense marketing to consumer loyalty?

Partially supported

RQ1c: Will TCE mediate the route from sense marketing to customer-based brand equity?

Partially supported

RQ2a: Will TCE mediate the route from feel marketing to consumer satisfaction?

Partially supported

RQ2b: Will TCE mediate the route from feel marketing to consume loyalty?

Partially supported

RQ2c: Will TCE mediate the route from feel marketing to customer-based brand equity?

Partially supported

RQ3a: Will TCE mediate the route from relate marketing to consumer satisfaction?

Completely Supported

RQ3b: Will TCE mediate the route from relate marketing to consume loyalty?

Completely Supported

RQ3c: Will TCE mediate the route from relate marketing to customer-based brand equity?

Completely Supported

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