The Phygital Synergy: How Metaverse Immersion Fuels Customer Loyalty through Perceived Value and Brand Engagement - An Integrated S-O-R and TAM Framework

The metaverse offers a paradigm shift for omnichannel retail, but empirical studies on its convergence with physical channels are in their infancy. Filling this research gap, this paper defines the metaverse as a strategic omnichannel touchpoint and explores its effect on loyalty. We propose and examine an original conceptual model based on the Stimulus-Organism-Response (S-O-R) theory and the Technology Acceptance Model (TAM). The model suggests metaverse immersion (Stimulus) affects internal states (Organism)—perceived value and brand engagement—that in turn shape behavioral outcomes (Response)—purchase intention and customer loyalty. Most importantly, we predict that physical retail experience mediates the intention-loyalty relationship, testing the very core "phygital synergy" hypothesis. A sequential mixed-method design was used, starting with qualitative data from 12 retail specialists, followed by a quantitative survey of 512 Indian metaverse users. Data were processed using PLS-SEM. Findings verify all the hypotheses: metaverse immersion has a strong positive effect on perceived value and brand engagement, which induce purchase intention and, consequently, loyalty. One main finding is the significant, positive moderating effect of physical retail experience, which empirically confirms the phygital synergy effect. This study adds to omnichannel theory by providing a combined S-O-R/TAM framework for phygital environments and offers managers tangible strategies for capitalizing on the metaverse to create seamless, loyal customer experiences.