Authors - Ch Sahyaja, D. Harsha, G. Sruthi, Ch Shankar Abstract - The digital marketplace presents significant challenges for firms, making customer loyalty a crucial strategic goal for sustained success. This study develops and tests a mediated-moderated structural model to uncover the mechanisms behind customer loyalty formation. Drawing on Relationship Marketing Theory and Customer Engagement Theory, the model examines Customer Engagement (CE) as a mediator between Customer Satisfaction (CS), Trust (TR), and Brand Image (BI), with Perceived Value (PV) moderating the CE–Customer Loyalty (CL) relationship. Data from 406 digital consumers were analyzed using Structural Equation Modeling (SEM) and moderation analysis. Results reveal that CE significantly mediates the effects of satisfaction, trust, and brand image on loyalty, accounting for up to 47% of the relationship. Additionally, PV moderates the engagement–loyalty link, enhancing the impact of engagement on loyalty in online contexts. The constructions demonstrated strong reliability and validity. These findings highlight the central role of engagement in converting relational drivers into loyalty and emphasize the importance of perceived value in strengthening this effect, offering valuable insights for firms seeking to build enduring digital customer relationships.
