Impacts of brand digitalization on brand market performance: the mediating role of brand competence and brand warmth

Purpose This study examines the relationship between brand digitalization and brand market performance, mediated by brand competence and brand warmth and moderated by brand familiarity, from a consumer perspective. Design/methodology/approach This study conducted a 2 (brand digitalization: yes vs no) × 2 (brand familiarity: high vs low) between-subject experiment and administered a survey with 693 valid responses. Two-way analysis of variance, Hayes' PROCESS macro and a linear regression model were used to analyze the data. Findings Brand digitalization positively affects brand market performance, which is mediated by brand competence and brand warmth. In addition, brand familiarity has a moderating effect on the relationship between brand digitalization and brand market performance, as well as on the mediating effect of brand competence and brand warmth. Practical implications Brand managers should enhance the integration of digital technologies into brand building and management and develop brand communication strategies that emphasize brand digitalization based on consumers' brand familiarity. Originality/value This study advances current knowledge of the drivers of brand performance by constructing the concept of brand digitalization and examining its role in improving brand market performance. Additionally, this study deepens our understanding of the relationship between digital technology usage and consumer brand response by examining the mediating effect of brand competence and brand warmth and the moderating effect of brand familiarity.