Role of Brand Awareness and Perceived Quality in Digital Advertisement

Abstract

The rapid growth of digital advertising has significantly influenced consumer behavior, particularly in Pakistan’s e-commerce industry. This study examines the impact of digital advertising on consumer buying behavior and brand loyalty, with brand awareness acting as a mediator and perceived quality as a moderator. Drawing on established theories such as the AIDA Model, Brand Equity Theory, and the SERVQUAL Model, this research integrates insights from contemporary and classical literature to develop a comprehensive understanding of digital marketing effectiveness. A quantitative research approach was employed, utilizing survey data collected from e-commerce consumers in Pakistan. The study employed Partial Least Squares Structural Equation Modeling (PLS-SEM) to test the hypothesized relationships. Results indicate that digital advertising significantly enhances brand awareness, which in turn positively influences consumer purchase intentions and brand loyalty. However, the moderating role of perceived quality suggests that while advertisements attract consumers, purchase decisions and long-term loyalty are contingent on trust in product quality and service reliability. Findings highlight that businesses must align digital marketing strategies with consumer expectations, emphasizing product authenticity, transparent advertising, and high service quality to foster sustainable brand loyalty. This research contributes to the academic discourse on digital marketing effectiveness and offers strategic insights for e-commerce practitioners in Pakistan looking to optimize their online branding efforts.