Phygital marketing: transforming engagement and satisfaction of the Indian digital natives

Purpose This study aims to examine the collective impact of physical and digital (phygital) marketing strategies on transforming customer engagement and satisfaction in the Indian tourism sector. The need to integrate physical and digital experiences has become increasingly crucial to meet the growing demands of tech-savvy travellers. Design/methodology/approach This research used a quantitative approach, analyzing data collected from 350 respondents using purposive and snowball sampling. The study examines the impact of phygital marketing strategies, including virtual reality (VR) and augmented reality (AR), on customer engagement and satisfaction using PLS-SEM. Findings The results highlighted a significant positive relationship between phygital marketing, customer engagement, and customer satisfaction. The result also demonstrated a significant mediating effect of engagement on satisfaction in phygital marketing. AR/VR technologies, combined with customized, data-driven marketing strategies, lead to higher satisfaction and loyalty among travelers. Research limitations/implications To develop the tourism sector, marketing strategies play a significant role, and there is now a need to integrate personalized content, interactive tools, and immersive technologies. To meet the needs of digital natives, tourism professionals must prioritize implementing data-driven insights and leveraging social media-driven engagement. Originality/value This paper integrates service-dominant logic and experiential marketing theory to empirically explain how phygital methods can recreate value in the tourism sector.