Exploring the Impact of personalization Advertisement on Customer Satisfaction: The mediating roles of Brand Experience, Perceived Value, Perceived Quality and Brand Awareness

Abstract

In the digital age, personalized advertising has emerged as a pivotal strategy in enhancing customer engagement and satisfaction. This study explores the impact of personalized advertisements on customer satisfaction within the electronics market of Pakistan, focusing on the mediating roles of brand experience, perceived value, perceived quality, and brand awareness. Utilizing the Stimulus-Organism-Response (S-O-R) model as the theoretical underpinning, the research adopts a quantitative approach and surveys 310 respondents using a structured questionnaire. The study applies multiple regression and mediation analyses to test the proposed hypotheses and validate the relationships among variables. Findings reveal that personalized advertising has a significant and positive impact on customer satisfaction. Additionally, all four mediating variables—brand experience, perceived value, perceived quality, and brand awareness—show significant mediating effects between personalized advertising and customer satisfaction. Specifically, brand awareness and perceived value emerge as the strongest mediators, highlighting the role of customer-centric strategies in fostering loyalty and purchase satisfaction. The results validate the application of the S-O-R model in digital consumer behavior and confirm that cognitive and affective perceptions formed through personalized experiences significantly influence satisfaction. This study contributes theoretically by extending the S-O-R model to the digital advertising context and practically by providing actionable insights for marketers in the electronics industry. It recommends prioritizing consumer personalization strategies that build brand familiarity, value perception, and quality recognition to enhance satisfaction. From a contextual aspect, the research addresses the question of how customized ads can affect consumer thoughts in countries starting to grow digitally such as Pakistan. In the future, researchers could investigate these topics by studying them over longer periods or by comparing them to different industrial sectors.