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A Smart Idea: An exploratory study into the role of smartphone technology as part of in-store
customer experience
SID: 4077185
1
A Smart Idea: An exploratory study into the
effect smartphone technology has on in-
store customer experience
By Rhiannon Owen
The work contained within this document has been submitted in partial
fulfilment of the requirement of their course and award
A Smart Idea: An exploratory study into the role of smartphone technology as part of in-store
customer experience
SID: 4077185
2
300MKT Advanced Marketing Study (Project) Submission Form
Submit to Turnitin by 11.55pm on 27th April 2015
Student’s Family Name: Owen
First Names: Rhiannon
Student ID No.: 4077185
Email address: [email protected]
Course Details:
BA Advertising and Marketing
Supervisors Name: Ellie Hickman
Project Title: A Smart Idea: An exploratory study into the role that smartphone
technology has to play as part of an integrated in-store customer experience
Declaration:
I certify that this project is my own work and has not been copied in part or in whole
from any other source. Any short quotations have been clearly marked up in inverted
commas with their exact source, including page number provided. This project
complies with Coventry University’s regulations on plagiarism, which I have read and
understood.
I am willing to allow Coventry University to use my project as a sample for future
students
Signed: Rhiannon Owen Date: 19th April 2015
Please submit this form with the electronic version of your project to Turnitin by
11.55pm on 27th April 2015.
A Smart Idea: An exploratory study into the role of smartphone technology as part of in-store
customer experience
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Abstract
This study analyses existing literature from both customer experience and other retail-based
academia, and also conducts qualitative primary research to investigate the ways in which
consumers use smartphones in physical retail environments. Gaps within the literature
available showed a need for greater investigation into the affect which mobile devices have
on a consumer’s overall experience within a bricks and mortar store, thus leading to the
basis of this research.
Results have shown that consumers use mobile devices in order for them to achieve pre-
existing goals and needs, with their smartphone also allowing them the opportunity to save
time and money. This then assists in creating an overall positive experience which is shown
to link to increased consumer loyalty.
A Smart Idea: An exploratory study into the role of smartphone technology as part of in-store
customer experience
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Table of Contents Abstract ................................................................................................................................................... 3
1.0 Introduction ...................................................................................................................................... 5
2.0 Literature Review .............................................................................................................................. 7
2.1 Antecedents & Outcomes of Customer Experience ..................................................................... 9
3.0 Methodology ................................................................................................................................... 17
3.1 Research Purpose........................................................................................................................ 17
3.2 Research Philosophy ................................................................................................................... 17
3.3 Research Approach & Instrumentation ...................................................................................... 17
3.4 Sample ......................................................................................................................................... 20
3.5 Interview Design & Data Analysis ............................................................................................... 20
3.6 Ethical Considerations ................................................................................................................. 20
3.7 Summary ..................................................................................................................................... 21
4.0 Data Analysis & Findings ................................................................................................................. 22
4.1 Saving Time ................................................................................................................................. 23
4.2 Saving Money .............................................................................................................................. 25
4.3 Goal Achievement ....................................................................................................................... 26
4.4 Loyalty ......................................................................................................................................... 27
5.0 Conclusions ..................................................................................................................................... 30
5.1 Managerial Implications .............................................................................................................. 32
5.2 Limitations ................................................................................................................................... 32
5.3 Recommendations for Future Research ..................................................................................... 32
6.0 References ...................................................................................................................................... 34
7.0 Appendices ...................................................................................................................................... 39
7.1 Ethics ........................................................................................................................................... 39
7.2 Participant Information Leaflet ................................................................................................... 40
7.3 Informed Consent Form .............................................................................................................. 42
7.4 Health & Safety Assessment ....................................................................................................... 44
7.5 Interview Questions .................................................................................................................... 48
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1.0 Introduction
Research in the field of customer experience is not new to the marketing world, having
being previously written about multiple times under the arguably out-dated label of
‘experiential marketing’ (Holbrook & Hirschman, 1982; Schmitt, 1999). Until recently
however, customer experience did not exist as a stand-alone concept, with it instead being
considered a contributor to service quality frameworks – the SERVQUAL model established
by Parasuraman et al. (1985) in particular - as it is well-known throughout literature on the
topic.
Modern society is becoming increasingly inseparable from their mobile devices as they
become integrated further into the lives of the consumer (Baker et al., 2002; Klaus &
Maklan, 2012). As consumers now look towards a more cross-channel platform, where
shopping and other activities both on- and offline comes very naturally to them, it has been
suggested that retailers should also adopt a more mobile-savvy approach in order to
capitalise on this (Ryu, 2013).
A key part of this technological adaptation is the investigation of how consumers are
currently using their smartphones in bricks and mortar retail stores (Zhang et al., 2010;
Spaid & Flint, 2014). This study aims to uncover consumer’s behaviours regarding
smartphones and how this impacts their experience. The results can then be used to focus
further on how – and indeed if – retailers can include a smartphone experience as part of a
wider multi-channel strategy.
Following this, this research project will additionally look into the reasons why consumers
are currently using their smartphones in physical retail environments, and whether this has
an impact on their overall customer experience of the retail brand. As such, the objectives
that will be set to achieve the aims of this study are:
To critically analyse existing literature surrounding customer experience and
technology in retail.
To investigate the reasons for the use of smartphones in physical retail
environments.
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To explore how retailers can adapt their in-store marketing strategies to include the
use of smartphones in order to improve the experience of their consumers.
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2.0 Literature Review
In order to prevent duplication of research, it is first important to ensure that a thorough
review of the literature is conducted to uncover any gaps which exist and can be used as a
basis for further research to be conducted.
More up-to-date academia now recognises customer experience as an entirely separate
construct to service quality. There is growing interest from companies regarding this new
marketing paradigm as they seek new ways to differentiate themselves from their rivals and
gain competitive advantage (Berry et al., 2002; Gentile et al., 2007; Klaus & Maklan, 2012;
Bagdare & Jain, 2013).
Whilst there is no standardised definition for customer experience, there has been
substantial groundwork in establishing common customer experience characteristics, which
can be seen in Table 1 below.
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customer experience
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Table 1: Customer experience definitions
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customer experience
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From Table 1 it can be seen that customer interaction with a brand is essential (Gentile et
al., 2007; Meyer & Schwager, 2007; Klaus & Maklan, 2012; Bagdare & Jain, 2013) and that
this interaction is usually across multiple touch-points (Gentile et al., 2007; Verhoef et al.,
2009; Klaus & Maklan, 2012; Bagdare & Jain, 2013).
There is also a general consensus regarding the various levels of customer involvement
whilst experiencing a brand, and that the resulting experience of the retailer throughout the
entire buying process is subjective and unique to the individual (Gentile et al., 2007; Meyer
& Schwager, 2007; Verhoef et al., 2009; Klaus & Maklan, 2012; Bagdare & Jain, 2013).
An aspect of customer experience which has been neglected in several of the definitions in
Table 1 is the importance of a holistic and integrated customer experience (Klaus & Maklan,
2012), although this has been mentioned by both Verhoef et al. (2009) and Bagdare & Jain
(2013). Due to the inclusion of all attributes featured in Verhoef et al.(2009)’s
characterisation of customer experience as well as additional consumer behaviour-related
elements such as the purchase process, the working definition of the concept for this
research will be:
“The sum total cognitive, emotional, sensorial, and behavioural responses produced during
the entire buying process, involving an integrated series of interaction with people, objects,
process and environment in retailing”.
- Bagdare & Jain (2013:792)
2.1 Antecedents & Outcomes of Customer Experience
Customer experience generally falls into two categories – that which the retailer can control
and that which they cannot, as whilst the retailers can design store experience attributes in
an attempt to sway the customer’s experience whilst in the store (Chakravorti, 2011;
Sathish & Venkatsakumar, 2013), the consumer’s reaction to these retailer-instigated
prompts are entirely dependent on factors such as past encounters, and a customer’s pre-
disposition among other perception-altering occurrences (Gentile et al., 2007; Verhoef et
al., 2009).
Whilst literature which discusses the potential outcomes of the customer experience
paradigm reaches similar conclusions to one-and-other (Lemke et al., 2011; Sathish &
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Venkatesakumar, 2011;Klaus & Maklan, 2012), antecedents of customer experience differ
significantly throughout existing research due to the varying ways in which the concept has
been approached.
There has been considerable discussion for instance, regarding the various levels of
involvement during a customer’s experience within a store (sensorial, emotion, cognitive,
pragmatics, lifestyle and recreational), and is regarded an important area for consideration
within customer experience frameworks as they affect a consumer’s assessment of their
individual experience (Gentile et al., 2007; Verhoef et al., 2009). Positive experience is
believed to enhance retail performance, with feelings of pleasure, satisfaction and
engagement alongside an upbeat mood being noted in particular as being consumer-led
thoughts and feelings which influence their experience assessment (Bagdare & Jain, 2013).
Other literature however, analyse facets that are managed more so by the retailer such as
service interface, product experience and atmospherics (Verhoef et al., 2009; Klaus &
Maklan, 2012; Sathish & Venkatesakumar, 2013). By placing these ‘clues’ for consumers in
the store, organisations can lead their customers to form the opinion that they have had a
positive experience with the brand (Berry et al., 2003). As consumers will assess their
environment regardless of whether the retailer attempts to manage the results of their
judgements or not, it is suggested that these company-controlled drivers should be
consciously managed by retailers to ensure the creation of the best possible experience
environment for consumers (Verhoef et al., 2009; Bagdare & Jain, 2013; Sathish &
Venkatesakumar, 2013).
One way in which consumers may assess their experience is through the retailer’s ability to
fulfil their goals. Whilst research discussing the evolution of shopping into a socially
interactive, pleasurable experience has shown that a consumer’s goals may not be entirely
utilitarian in nature (Lemke et al., 2010; Bagdare & Jain, 2013; Sathish & Venkatesakumar,
2013), it must also be noted that the fulfilment of a utilitarian goal will always take
precedence when it comes to evaluating the success of their overall shopping experience
(Klaus & Maklan, 2012).
As the world moves towards one which is ever-more technology focused, retailers have
begun to integrate technology into their service offerings to increase process ease for
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consumers (Baker et al., 2002; Verhoef et al., 2009; Sathish & Venkatesakumar, 2013) and
therefore assisting in goal fulfilment. This has become particularly prevalent in supermarket
shopping environments where many have added self-service technologies (SST) to their
service interface (Slack & Rowley, 2002; Giebelhausen et al., 2014). These have been widely
accepted by consumers due to the ways in which they have been able to save time, solve an
intensified need, or deliver increased performance (Meuter et al., 2000). As a result of this
prevalence, the majority of research surrounding the use of technology in retail
environments has been done using SST as focus (Slack & Rowley, 2002; Keeling et al., 2006;
Elliot et al., 2013; Giebelhausen et al., 2014).
Research regarding technology in retail stores which falls outside of customer experience
literature is slightly more present, however still under-developed when compared to the
speed with which the market is attempting to adapt to the new behaviours of its consumers
(Meuter et al., 2007; Sanusi & Palen, 2008; Ferdianti et al. 2013).
Pantano (2014) summarises technology’s ability to satisfy the consumer’s need for
innovative product and services, whilst Lusch et al. (2007) discuss the importance of
innovative information technology in aiding competitive advantage for companies. Whilst
not specifically speaking with regards to customer experience, these pieces do create ways
in which one is able to be link technology back to the customer experience-based literature
which has been mentioned previously regarding how firms can increase the likelihood of
differentiation from their rivals (Berry et al., 2002; Gentile et al., 2007; Klaus & Maklan,
2012; Bagdare & Jain, 2013).
There are also links between technology and increased customer loyalty outside of
customer experience academia. Pantano & Migliarese (2014) argue that the reduction in
human interaction between store employees and consumers could lessen the potential of
relationship-building – and consequently loyalty intentions as a result, which contradicts the
customer experience concepts of Verhoef et al. (2009) and Klaus & Maklan (2012) who
include technology as being of importance when attempting to create a positive customer
experience.
Other than this, literature surrounding the impact of technology on a consumer’s shopping
experience is small and relatively un-investigated. There is a significant gap in current
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research literature when the growth of alternative digital channels such as mobile is taken
into consideration, as this has resulted in increases in multi-channel – and indeed omni-
channel – business practices (Cassab & MacLachlan, 2009; Verhoef et al., 2009; Zhang et al.,
2010; Pantano & Migliarese, 2014).
Multi-channel retailing is regarded as being a set of activities involved in selling merchandise
or services to customers via more than one channel (Zhang et al., 2010), with customers
being expected to evaluate the functional quality of the retailer and its technologies across
all channels of retail (Cassab & MacLachlan, 2009). Literature on the subject generally
separates the channels which are available for retailers operate within as being either online
or offline (Zhang et al., 2010). Little is said however, of how/if multi-channel experience is
impacted upon when the line between online and offline is blurred.
The increased usage of smartphones in stores has begun to be commented on (Chahal,
2013; Miller & Washington, 2014; Spaid & Flint, 2014), with it being suggested that retailers
should also become more mobile-savvy and embrace a more mobile lifestyle in order to
develop relationships with this segment of the market (Ryu, 2013). Modern technology
allows consumers to both browse the internet and purchase online via their smartphones,
meaning that the facilitation of mobile as part of a multi-channel shopping experience is of
increasing importance as there is huge potential for smartphones to be the bridge between
the online and offline worlds (Fulgoni & Lipsman, 2014; Krueger, 2015).
Advances in apps as well as in-built smartphone technology such as near-field
communications (NFC) and GPS have led to the creation of m-coupons, app-based loyalty
cards and ‘hyperlocal’ marketing (Dhar & Varshney, 2011; Cameron et al.,2012; Borrego-
Jaraba et al., 2013). Despite a wealth of research indicating that consumers are searching for
information on their smartphones more often, regularly downloading apps and purchasing
through their phones (DeStasio, 2012; Shields, 2012; Chahal, 2013; Nielsen Mobile, 2014;
Krueger, 2015), there is little research to how this impacts on consumer experience, their
perceptions of the retailer, or whether there is an impact upon customer loyalty as a result.
Similarly due to the newness of the technology and the rapidity of its growth there has been
little insight into how retailers can best utilise this new platform for approaching their
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consumers, with only vague indications of measurement and integration with other
platforms being available at best (Ryu, 2013; Fulgoni & Lipsman, 2014).
App-based loyalty cards in particular have solid footing for success based on academia
which currently exists for its physical, card-based counterpart (Mauri, 2003; Demoulin &
Zidda, 2007; Garcia-Gomez et al., 2012). Garcia-Gomez et al., (2012) originally theorised five
factors which may influence a consumer’s likelihood of joining a retail loyalty programme:
price sensitivity, a consumer’s search for variety, shopping enjoyment, attitude towards
loyalty schemes and privacy concerns.
Price sensitivity is however was discovered to not impact upon the decision to engage in a
loyalty scheme (Garcia-Gomez et al., 2012) - deemed to be due to a consumer’s desire for
variety having a negative impact on consumer participation. There is however research
stating the opposite of this, with some noting that those who have no real product
preference are more likely to shop around and are considered more likely to engage in
loyalty schemes (Mauri, 2003). This desire for freedom of choice establishes links between
customer experience literature and rewards scheme literature, showing a potential for
increased likelihood of customer retention through positive customer experiences of loyalty
and reward schemes (Mauri, 2003; Verhoef et al., 2009; Klaus & Maklan, 2012).
Privacy concerns were however shown to have a clear inverse correlation with loyalty card
participation (Garcia-Gomez et al., 2012), showing that there is a degree of distrust between
consumers and some retailers. Media reports about consumer data being leaked
For those who do engage in loyalty card and reward card schemes, the benefits for retailers
are huge if successful with satisfied reward card customers being much more store loyal and
less price sensitive, with frequent offers that are both individual and personalised to the
consumer being more likely to be successful programmes (Mauri, 2003; Demoulin & Zidda,
2007; Cameron et al., 2012).
That said, the engagement in loyalty card programmes whether physical or app-based is not
the only way of reaching out to consumers with more personalised offers. The
aforementioned increase in the capabilities of location-based marketing through improved
GPRS signals, Bluetooth etc, allows for very location- and time-specific m-coupons and
offers to be sent to the user’s device. There is a debate regarding whether consumers are
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happy to receive these messages or whether they will be considered annoying or ‘spam-like’
(Grant & O’Donohoe, 2007), however Shields (2012) has established that the key for
consumer acceptance of these promotional messages lies within the personalisation of the
offer to the consumer. That said, there are similar concerns regarding privacy of consumer
information – in particular the tracking of an individual’s location - which must be taken into
consideration (Grant & O’Donohoe, 2007; Basheer & Ibrahim, 2010; Richard & Meuli, 2013).
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Most specifically to in-store experience, NFC has begun to be introduced to the consumer,
and can act as a method of payment as well as method of transmitting messages to
smartphone users who are hyper-local, whether in a specific aisle of a supermarket or
having just crossed the threshold of a store (Ferdianti et al.,2013; Richard & Meuli, 2013).
Again, however, the aforementioned issues around privacy are cause for concern (Richard &
Meuli, 2013; Raschke et al., 2014).
Additional issue surrounding the use of smartphones are the restrictions on data-services
and the cost that the consumer incurs to use these services (Dhar & Varshney, 2011). Whilst
Wi-Fi connections are increasingly common in retail stores which reduces costs, bandwidth,
device memory and internet speed are still factors which need to be considered when
considering the use of mobile marketing as part of a business strategy (Sanusi & Palen,
2008; Dhar & Varshney, 2011).
With all of these methods of smartphone use in retail environments as well as others,
personalisation has shone through as being a key tool for success (Cameron et al., 2012;
Shields, 2012), with emphasis of the need for multi-channel integration as part of a larger
retail strategy in driving this personalisation across channels (Gentile et al., 2007; Cassab &
MacLachlan, 2009; Pantano & Migliarese, 2014). This can facilitate the creation of a holistic
experience which has been established as being of crucial importance for a positive
customer experience overall (Verhoef et al., 2009; Klaus & Maklan, 2012; Bagdare & Jain,
2013).
Ease of use (Baker et al., 2002; Verhoef et al., 2009; Sathish & Venkatesakumar, 2013),
convenience ( Gentile et al., 2007; Verhoef et al.,2009; Klaus & Maklan, 2012) and the ability
to search for information (DeStasio, 2012; Klaus & Maklan, 2012; Sathish &
Venkatesakumar, 2013) also rankly highly as common themes throughout the literature as
being of importance in creating a positive customer experience, and technology has been
identified as a way that this can be harnessed (Verhoef et al., 2009; Cameron et al., 2012;
DeStasio, 2012).
Although there are links relating customer experience to the use of smartphone
technologies in retail environments through the concepts of retail and mobile technology
academia, loyalty and customer experience literature, it remains that academia linking the
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three is sparse to non-existent. Advances in marketing tools and smartphone capabilities
such as location-based mobile marketing, NFC, and the improvement of mobile applications
have been identified as tools which can allow retailers to build on this experience (Richard &
Meuli, 2013), however the lack of information for retailers about how/whether this can
impact upon consumer experience as part of a wider strategy, and the further implications
this has on consumer-brand relationships, is lacking. Privacy concerns are an area which has
been deemed to require close scrutiny to reassure consumers of the security of their
personal information (Richard & Meuli, 2013; Ryu, 2013; Raschke et al., 2014), so should
also be included as a topic for discussion in any research conducted on the subject.
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3.0 Methodology
3.1 Research Purpose
The purpose of this study is to uncover ways in which bricks and mortar retailers can use
smartphones to enhance their customers’ experience within their store, with the focus
being on key themes which have been unearthed from the literature review.
3.2 Research Philosophy
The research follows an inductive approach, with an interpretivist epistemology as
behaviour is considered to be generated as a result of a human’s mind. Curiosity has driven
the research, with the data collection then allowing theoretical conclusions to be drawn
(Davies, 2007) as well as the research being based on the opinion that social reality is in the
mind of the individual with multiple realities possible as opposed to being singular and
objective (Collis & Hussey, 2014; O’Gorman & MacIntosh, 2014).
Research will also have a constructivist ontology which “asserts that social phenomena and
their meanings are continually being accomplished by social actors” (Grix, 2010:61) as
opposed to social phenomena occurring regardless of social actors, further cementing the
interpretivist stance of the study. This will best allow for the investigation of the use of
smartphone technologies in-store as it will take into account factors such as the past
experiences and the pre-dispositions of consumers.
3.3 Research Approach & Instrumentation
There are two ways in which the collection of data can be approached; qualitative and
quantitative (McGivern, 2009). Qualitative research is concerned with examining
characteristics, traits and qualities via research with the aim of understanding an individual’s
perceptions of the world, whereas quantitative data looks more towards finding general
patterns and relationships among variables with the aim of quantifying the results (Bell,
2010; Grix, 2010).
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Table 3.1 Advantages and disadvantages of qualitative and quantitative data collection (McGivern,
2009; Davies, 2010; Grix, 2010).
Table 3.1 above demonstrates the advantages and disadvantages for both qualitative and
quantitative data collection in relation to this study. Qualitative data collection is deemed to
be most appropriate in this instance with the study being interpretivist through its aim of
developing an understanding the social habits of consumers. That said it must be noted that
the in-depth nature of qualitative research will mean that a smaller sample size will be
chosen, with the findings being unlikely to be representative of the wider population.
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Table 3.2 Advantages and disadvantages of qualitative data collection methods (McGivern, 2009;
O’Gorman & MacIntosh. 2014).
In this instance in-depth interviewing has been chosen as the most appropriate collection
technique due to the subject being more personal to the individual negating the need for
debate and/or discussion (O’Gorman & MacIntosh, 2014). Observational data collection has
been eliminated due to it being a necessity for the observer to have knowledge of what
apps the participants are using as well as in-store actions, meaning that further questioning
would be required at an additional cost to time.
Interviews will be semi-structured to allow for easier analysis of themes and to ensure
relevance to the goals of the study which is an issue that may arise should the interview be
completely unstructured. The questions and path taken during the discussion could differ
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greatly between interviews could differ greatly which would make analysis more difficult for
the researcher (O’Gorman & MacIntosh, 2014). Semi-structured is also preferable to a
heavily structured interview technique as these may inhibit the uncovering of additional
information that the interviewer had not previously considered (McGivern, 2009). Whilst it
is acknowledged that there could be a degree of interviewer bias through prompting or
loaded questions, the use of semi-structured interviews should prevent this through having
a list of pre-determined questions which have been checked to ensure they are not biased.
3.4 Sample
To be in keeping with ethical guidelines whilst still allowing for depth of understanding
through research the target population will be Coventry University students, with a sample
size of eight participants being selected for data collection. These will be selected through
purposive sampling to allow for ease of access to participants whilst also providing a degree
of selectiveness in those interviewed (Davies, 2010).
3.5 Interview Design & Data Analysis
To follow the semi-structured nature of the interviews, questions will also be semi-
structured based around pre-determined key themes and will be adapted with follow-up
questions for each participant dependant on the answers given.
Due to the large amounts of descriptive data likely to be resultant of qualitative interviews,
the method of analysis most appropriate is thematic coding (O’Gorman & MacIntosh. 2014.
Despite indications of possible themes being indicated during the literature review it is of
vital importance to remain unbiased when analysing the data therefore initial themes will
be generated ‘posteriori’, beginning first with high-level coding before returning to analyse
in more detail with lower-level coding (O’Gorman & MacIntosh, 2014). This will ensure
consistency and reliability throughout the analysis, giving an overall narrative of the subject
and a comprehensive summary as a result.
3.6 Ethical Considerations
In order to ensure that data is collected ethically participants have been asked to read a
participant information form (see Appendix 7.2, disclosing the reasons for the research and
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any other questions they have regarding how their information. This is prior to filling out an
informed consent form to register their participation, where they are assured that
participation in voluntary and that they can opt out of the study at any time (see Appendix
7.3).
Data will be stored separately to the participant consent forms and pseudonym names will
also be used throughout to ensure anonymity and the data will be destroyed after use, and
will not be used for any other form of research.
3.7 Summary
In summary the decision has been made to conduct qualitative data collection through
semi-structured, in-depth interviews with eight participants from Coventry University. This
will prevent bias whilst having the maximum opportunity for ways in which consumers use
their smartphones in-store to enhance their customer experience.
The following chapter will discuss the findings of this data collection and relate this back to
the literature mentioned in section 2.0, with the hope of establishing links between existing
academia and the findings of this study to create the basis for theoretical conclusions.
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4.0 Data Analysis & Findings
From the eight in-depth interviews which have been conducted as the primary research for
this project, six key themes have been uncovered as being of particular relevance regarding
that which affects or is affected by a consumer’s in-store smartphone use. In order that
anonymity is retained for those who participated, pseudonym names will be used (see Table
4.1 below).
Table 4.1 Participant Pseudonym Names.
The analysis of the primary data which has been collected has provided key themes which
can be critiqued against existing literature to either support or contradict that which has
previously been discussed – three of which are antecedents of the customer experience
concept, and one of which is an outcome:
Saving time
Saving money
Goal achievement
Loyalty
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This data analysis will discuss these four themes in more detail in order to draw logical
conclusions as to the result of this study.
4.1 Saving Time
Zayn echoes the large majority of participants when he says that “all of the information that
you could ever want about a product, you can find at the convenience of your phone”, with
interviewees as Rachel expanding on this with comments such as “it’s a lot more convenient
for me to have [loyalty cards] on my phone as everything is in one place”.
Convenience is a strong theme found throughout all participants interviewed regarding their
decision to use a smartphone as part of their in-store experience with all interview
participants making clear reference to the antecedent as well as citing ‘ease of use’. From
reviewing the literature there was specific mention of the importance of convenience and
ease of use in creating a positive customer experience (Klaus & Maklan, 2012) and the role
that technology is expected to play in the fulfilment of positive customer experience (Baker
et al., 2002; Verhoef et al., 2009; Sathish & Venkatesakumar, 2013).
Data which has been collected shows that the term ‘convenience’ with regards to
smartphone usage in retail stores is determined more so by the availability and accessibility
of information as opposed to the convenience of the actual retail store which is the main
point mentioned in existing literature thus far (Verhoef et al., 2009). This is a discovery
which adds to the existing base of literature, further proving the scope and depth to which
convenience is a factor in creating a positive in-store experience for consumers. It also
reaffirms the strong link between convenience and ease of use as antecedents of customer
experience, as one was rarely mentioned without the other both in existing academia
(Meuter et al., 2000; Verhoef et al., 2009; Klaus & Maklan, 2012; Sathish & Venkatesakumar,
2013) and in the primary research collected for this study.
The core rationale when discussing the importance of convenience for consumers when
using a smartphone in store has been established through the interview process as being
because it saves the consumer time when completing their goals (see section 4.3). This
assists in marrying the customer experience focused literature and literature from other
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research areas as technology has been noted to be of particular use to the consumer when
it aids in saving time (Meuter et al., 2000). Researching products has high prevalence as
being an activity which participants undertake when using their smartphone in a retail
environment.
Whereas the majority of those interviewed had the mentality of “if it makes my life easier I
will [try it]” when deciding to use mobile applications and websites through their phone,
Annie disagreed with this sentiment as she had fears over the security of mobile
applications in particular and would rather wait to find information or purchase products
from her laptop at home rather than use her smartphone. When asked about why she felt
this way about mobile applications Annie said that: “I feel like they have ulterior motives and
just want my information and bank details so that they can scam me or sell my information”.
Whilst the majority of participants did not mention that they felt the security of their
smartphone was an issue for them this factor must be taken into consideration for brands as
it is likely that others will have similar feelings, although this cannot be proven due to the
small sample size of this study. It must also be noted that security and privacy is not
something which has been taken into consideration in the vast majority of customer
experience and technology literature which has been analysed in Section 2.0, with few
making any real reference to it (Klaus & Maklan, 2012; Richard & Meuli, 2013).
Existing literature discussed the necessity for product comparison for consumers as well as
the consumer’s need for accessible product/service reviews (Verhoef et al., 2009; Klaus &
Maklan, 2012) which does still fit with all interviewees despite some being more willing to
share information than others to gain access to this. Interviewees who did use their
smartphone to access information did so because they “always have their phones with
them” and because it “makes accessing information a lot quicker and easier” which allowed
them to save time during the decision-making and purchasing process.
Where interviewees were facilitated by the brand in their search for information via a
branded app or similar, it was shown that the brand was more positively received by the
consumer and brand-consumer relationships were also improved (see Section 4.4 for more
on relationships and loyalty). In this instance, Mark used an app created by his preferred
video game retailer to read reviews on games he was contemplating on purchasing whilst he
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was in the store, and had more positive perceptions as a result of increased availability of
information.
4.2 Saving Money
Much like saving time, saving money is also of importance to users when giving reasons why
they may use smartphones in retail stores, with consumers utilising the ability to compare
prices on their smartphone as a way of saving time AND money. “I guess it is financially
driven because you want to make sure that you get value for money but if you’re on a
budget then you also don’t want to spend too much” as quoted from Carrie is a common
sentiment among those interviewed with the online retailer, Amazon, being the most
commonly used tool for comparison via smartphone having being mentioned almost
unanimously by interviewees. That said, browsing through specific competitor retailers’
websites has also been revealed from the interviews of Mark and Saffron as being a
common activity in price comparison.
These sentiments follow that of Verhoef et al.,(2009) who state the importance of price in a
consumer’s experience evaluation, with positive in-store experience being achieved through
technology’s facilitation in reducing risk by allowing the consumer to find the best price and
by a consumers results focus of purchasing a product deemed value for money (Klaus &
Maklan, 2012).
Application-based loyalty cards and other branded applications which convey offers are also
mentioned significantly across the interviews, with all interviewees being of a similar mind-
set to Rachel in that they enjoy using them to save money in an easier, more convenient
way: “I like the incentives that [branded apps] offer me because it adds a little extra value
and excitement when buying things in-store”. Mark adds to this in that “you accumulate
points and points mean money so you can use the points to get money off a game” while
Rebecca mentions that one of the reasons that she enjoys using loyalty cards and other
branded apps because it “gamifies it slightly”.
This price sensitivity of consumers was discussed in the literature review as not having an
impact on a customer’s decision to engage in a loyalty scheme (Garcia-Gomez, 2012),
however the finding s of this study shows price sensitivity to be of significant importance in
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a consumer’s decision to use loyalty card applications of their smartphone, with Rob saying
that “it’s nice to know that when you shop you can get some vouchers for a free meal out of
something” and many noting that personalised offers in particular are significantly more
likely to create a positive experience when in-store. This type of customer satisfaction is a
typical outcome of Klaus & Maklan’s (2012) customer experience model, with it also proving
that a positive customer experience can be facilitated by technology when the consumer is
able to access promotional offers and loyalty schemes with more ease (Meuter et al., 2000;
Verhoef et al., 2009; Klaus & Maklan, 2012).
There is some minor resistance to the use of application-based loyalty cards, with Carrie
saying that she “prefers the physical vouchers and cards as they fell more real”, saying that if
her phone or internet connection is slow it can be easier to use physical vouchers as
opposed to virtual, and Rachel saying that the way in which Boots let customers add virtual
vouchers to a physical card via an app scares her as she is worried that “I’ll go to buy a load
of stuff because I’ve attached a money saving offer virtually to my [physical] card, and then
when I have paid I’ll realise that it won’t have worked so I’ll end up spending more than I
wanted to”. This demonstrates that whilst price sensitivity is a reason for the use of
smartphones in retail environments, there is also the need for consumer reassurance which
retailers need to consider as despite advancements in technology consumers are still wary
of new methods of brand interaction if they could lose money as a result, which also follows
that which has been discussed in the reviewing of existing literature (Verhoef et al., 2009;
Klaus & Maklan, 2012).
4.3 Goal Achievement
Goal achievement is something which is mentioned throughout customer experience
literature as well as other conjoining areas of literature for this study (Meuter et al., 2000;
Verhoef et al., 2009; Klaus & Maklan, 2012). In all of the scenarios mentioned by the
interview participants, the intention/goal for purchase was already present upon entering
the store and using their smartphone, although it must be noted that some goals weren’t
necessarily a high priority.
Rob mentions an occasion where he has used his smartphone to purchase online whilst in a
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store – something which has also been done by other interview participants: “I was in Zara
and wanted to purchase a jacket but they didn’t have in my size so I took a photo of the
serial number of the jacket and bought it online instead”. This is a typical scenario where
consumers would opt to use a smartphone in store and demonstrated how technology
assists in goal achievement leading to a more positive experience, and is one which Rachel
and Zayn have also done whilst they’ve been shopping: “If I want something but the shop
doesn’t have it in stock I can just buy it on my phone whilst I’m in the shop before I forget so
I’ve still achieved what I set out to” (Rachel). Klaus & Maklan (2012) in particular noted that
the fulfilment of a goal will always take precedence when a consumer evaluates their
shopping experience, making it one of the most important antecedents. In addition a cross
over between goal achievement and saving time can also be seen through the ways in which
consumers are using their smartphones in store, as most are using their phones to purchase
immediately to save them having to wait until a later time or date. This correlates with that
which was discussed in Section 2.0 as technology has been able to assist those interviewed
in achieving their goals quickly and simply, which also satisfying consumers’ needs for more
innovative products and services in-store (Meuter et al.,2000; Verhoef et al., 2009; Pantano,
2014).
As well as literal purchases through their phones whilst in-store, participants also spoke of
their search for information whilst in-store always being congruent to them achieving the
goals which they had set out to: “I use my phone for specific goals like googling the answer
to a question or to visit a website that I needed at that time” (Rob). These are usually spur-
of-the-moment and are used to help the consumer make a decision there and then, saving
them time as well as fulfilling a pre-determined goal.
4.4 Loyalty
Many of the comments mentioned by those interviewed show that an integrated, cross-
platform consumer experience has a strong likelihood of creating positive perceptions and
loyalty towards the brand involved: “I would definitely become more loyal to a brand if my
smartphone was a lot more integrated and interactive for me during my [in-store] buying
process” (Saffron) with Zayn adding to this: “being able to use my phone in-store positively
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reflects on my perception because I’m able to do more and it leaves me more engaged”.
Price sensitivity is also less of an issue for consumers if there is better integration of their
smartphone in a retail environment with Rachel saying that “I would much rather go to a
store that offers me a more integrated experience that is a little different to the norm, even
if it costs me a little more”. This is a typical view of the vast majority who were interviewed,
with Carrie also admitting that “I’m more likely to buy from them because their app is good”.
Price sensitivity reduction is something which has not been mentioned explicitly in existing
customer experience literature, however the effect of promotional offers, loyalty
programmes and price has – all of which have been shown to factor into a positive customer
experience (Verhoef et al., 2009). Whilst Verhoef et al., (2009) do not discuss the outcomes
of customer experience, there are others who have established loyalty as being an outcome
(Klaus & Maklan, 2012; Bagdare & Jain, 2013), meaning that the primary research of this
study provides a link which conjoins both pricing factors as an antecedent to customer
experience together with loyalty as an outcome.
Access to reviews and other comparison for information is something which the reviewed
literature established as being linked to the creation of a positive customer experience –
something which Klaus & Maklan (2012) have gone further in saying is linked to loyalty,
although the primary data which has been collected does not explicitly say this. It was
discovered however that consumers must already have at least a mild preference for the
brand in order for a branded retail app to be downloaded, with Saffron noting that “I don’t
really feel that invested with some brands to have their loyalty cards on my phone” and Rob
stating that “I wouldn’t get an app for a place that I didn’t like”. This is something which has
not previously been discussed in any pre-existing literature available therefore filling a gap
regarding ways in which consumers may or may not use their phone to enhance their
experience. For occasions when those interviewed were in a shop that they do not already
have a preference for, it was seen that participants were more likely to browse competitor
websites for further information or for price comparisons instead as opposed for interacting
with the retailer brand.
As much as it has been discussed in the analysis of primary research that the use of
smartphones in-store can positively enhance a consumer’s loyalty to the retailer brand, it is
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also important to note that a negative mobile application or mobile website experience of a
brand can also damage a consumer’s loyalty to retailer.
Carrie is one of the participants who speak of this saying: “Their site is impossible to
navigate on my phone. […] it makes me consider whether or not I actually want another
contract with them when this one ends because they’re not making any effort for their
customers” and Rachel also notes that “if [an app] has caused me hassle or if I run into
difficulties I would have just given in and not bothered buying from them”. Service interface
is spoken about in the literature as having an impact on customer experience (Verhoef et
al., 2009), and by linking this to the primary research it can be seen that the service
interface of mobile applications and website access on smartphones can also impact on a
consumers decision to purchase products and services through the retailer, ultimately
impacting on their overall brand experience.
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5.0 Conclusions
The initial basis for this research was to discover ways in which consumers use smartphone
devices in bricks and mortar retail environments, and whether this impacts on their overall
experience whilst in the store. There is a plethora of customer experience literature already
published regarding more generalised customer experience literature (Parasuraman et
al.,1985; Gentile et al., 2007; Meyer & Schwager, 2007; Verhoef et al.,2009; Klaus & Maklan,
2012; Bagdare & Jain, 2013; Sathish & Venkatesakumar, 2013). There is however a distinct
lack of customer experience literature relating directly to ways in which technology impacts
this experience. This then meant that it was necessary to extend review of literature to
include other research approaches to retail-based technology.
The project was able to meet the objectives of this study which were:
To critically analyse existing literature surrounding customer experience and
technology in retail.
To investigate the reasons for the use of smartphones in physical retail
environments.
To explore how retailers can adapt their in-store marketing strategies to include the
use of smartphones in order to improve the experience of their consumers.
The first was achieved through the analysis of existing research such as general customer
experience literature, how technology is currently used within retail environments, and
current uses for smartphones which has been documented so far.
The second and third were achieved through conducting primary research via in-depth face-
to-face interviews to deduce the ways and reasons for consumers making the decision to
use their smartphones in-store, with participant recommendations being combined with
suggestions from literature to create managerial recommendations.
As a result of the research which has been conducted during this study, three key areas have
been established as being key determinants as to reasons for smartphone use in-store:
saving time, saving money, and goal achievement. The study has shown that these three
themes are intrinsically inter-linked with each other, with goal achievement and saving time
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being particularly entwined with one-and-other as consumers become more time-poor. The
antecedents established correlate well with existing customer experience literature
(Verhoef et al., 2009; Klaus & Maklan, 2012; Bagdare & Jain, 2013; Sathish &
Venkatesakumar, 2013) and has allowed for the literature to be expanded upon, confirming
that smartphone technology is a facilitator for influencing a consumer’s perception of
experience. It is, however, vital to note that a positive smartphone experience is not enough
to fulfil consumer requirements for in-store experience alone, with it instead needing to be
integrated seamlessly as part of the overall experience to add value for the consumer – an
idea also discussed by Verhoef et al. (2009).
The primary research has also allowed for a link between consumer loyalty and the use of
technology as part of customer experience to be established – something which although
insinuated, has not been explicitly linked in previous literature. Analysis of primary data
uncovered that a pre-existing preference was required for branded apps to be used within
retail environments, with consumers being more likely to browse competitor websites for
price comparisons and information in stores which they have no pre-existing preference for.
This is where customer experience literature has been expanded upon into the specifics of
technology use in-store, as it has created conditions for loyalty and possible implications for
how this can be managed.
Diagram 5.1 Antecedents and outcomes of a technology-enabled in-store customer experience.
Figure 5.1 above presents the findings of this study as a conceptual model which clearly
shows the ways in which the three key themes of ‘saving time’, ‘saving money’ and ‘goal
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achievement’ antecedes customer experience, as well as demonstrating the link between
technology’s facilitation of customer loyalty as part of a multi-platform experience.
5.1 Managerial Implications
One of the key areas for managerial attention is the necessity of a mobile application or
mobile-optimised website which is easy to use for a consumer both within a retail store and
elsewhere. Negative brand perceptions such as laziness were cited by consumers who did
not bother to meet the minimum expectations regarding the usability of mobile user
interfaces, with loyalty being affected where they were unable to complete their goals with
relative ease.
An integrated and interactive smartphone experience was also established as being an
enticing pull for consumers, with personalised, hyper-local offers being mentioned as
appealing for consumers in order for them to save time and money when shopping in bricks
and mortar shopping environment.
5.2 Limitations
The most significant limitation in this instance is the scale of the study as only eight
participants were interviewed for the study which, as mentioned in Section 3, means that
the results are unable to be generalised to the wider population. Further to this, the use of
university students and purposive sampling also means that a representative sample of the
population is unlikely to have been obtained.
In order to improve the validity of finding in the future, a greater sample size should be
used, with specific qualifying questioned being asked to the participant beforehand in order
to assess suitability for the study.
5.3 Recommendations for Future Research
Generically speaking, the use of technology in physical retail environments is still difficult to
come by in existing literature, meaning there is a further requirement for research into the
use of mobile device use in-store and how this effects customer experience, as they
become ever-increasingly integrated into the daily lives of consumers. Whilst this set of
research has begun to uncover the ways in which smartphones contribute to overall
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customer experience in store, the specific uses of branded mobile applications in particular
could benefit from additional research to further uncover consumer usage and preferences.
It would also be beneficial for managers to understand more about how smartphone use in
physical retail environments fits into a multi-channel strategy, as this was often touched on
by interview participants however looking into this in more detail would have made this
specific study too broad. Since the price sensitivity of consumers has been shown to be
reduced when consumers feel that they are getting a more integrated, interactive
experience in-store, it would be advantageous for further research to be carried out
regarding the technological factors which consumers would find enjoyable as part of an
integrated in-store experience to allow for greater potential for loyalty and follow-through
to purchase.
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7.0 Appendices
7.1 Ethics
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7.2 Participant Information Leaflet Participant Information Sheet
Study title:
How retailers can use smartphones to enhance customer experience in-store.
What is the purpose of this study?
To investigate the ways in which millenials use their smartphones in physical retail stores, allowing
for recommendations to be made regarding how retailers can incorporate the devices to enhance
customer experience.
Why have I been approached?
For the purpose of this study I need to recruit those studying at Coventry University who own a
smartphone.
Do I have to take part?
No. Participation is entirely voluntary. You can withdraw from the study at any point during the
study and at any point up to 2nd February 2015. To withdraw, please contact me by email stating you
wish to withdraw from the study. If you decide to withdraw you will have no further involvement in
the study. All data is anonymous and you will not be identifiable in any way. There are no
consequences for withdrawing from the study.
What will happen to me if I take part?
You will be asked to complete one, 1:1, in-depth interview which will be held on the university
campus, and will last for approximately 45 minutes.
What are the possible disadvantages and risks of taking part?
It is considered that there are no disadvantages or risks in participating in this study. It is a simple,
casual interview process where questions will be asked relevant to your smartphone usage in
general and specific to when you are in a retail environment.
What if something goes wrong?
If the session has to be cancelled I will attempt to inform you as soon as possible………. If you change
your mind about taking part in the study you can withdraw at any point during the sessions and at
any time up to 2nd February 2015 (see ‘Do I have to take part?’ above).
Will my taking part in this study be kept confidential?
Yes. Only I will have access to the raw data. All the consent forms will be stored in a separate, locked
location from the raw data itself. You will NOT be identifiable from the questionnaires or any data
subsets. All questionnaires will be destroyed by 30th April 2015. Consent forms will be destroyed
according to University regulations.
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What will happen to the results of the research study?
The results will be written up and presented as part of my undergraduate dissertation.
Who is organising funding of this research?
No funding is associated with this research.
Who has reviewed this study?
The questionnaire has been reviewed by members of the ORB - Marketing and Advertising
Department.
Contact for Further Information
Rhiannon Owen, Project Investigator [email protected] OR for independent contact and information: Ellie Hickman, Research Supervisor [email protected]
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7.3 Informed Consent Form
Informed Consent Form Study title:
How retailers can use smartphones to enhance customer experience in-store.
What is the purpose of this study?
To investigate the ways in which millenials use their smartphones in physical retail stores, allowing
for recommendations to be made regarding how retailers can incorporate the devices to enhance
customer experience.
Please tick 1. I confirm that I have read and understood the participant information sheet for the above study and have had the opportunity to ask questions.
2. I understand that my participation is voluntary and that I am free to withdraw at anytime without giving a reason.
3. I understand that all the information I provide will be treated in confidence.
4. I understand that I also have the right to change my mind about participating in the study for a short period after the study has concluded (until 2nd February 2015).
5. I agree to complete a 1:1, in-depth interview as part of the research project.
6. I agree to take part in the research project
Name of participant: .......................................................................................
Signature of participant: .................................................................................
Date: ................................................................................................................
Name of Researcher: Rhiannon Owen
Signature of researcher: ...................................................................................
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Date: ..................................................................................................................
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7.4 Health & Safety Assessment
STUDENT RESEARCH PROJECT RISK
ASSESSMENT
Person(s) undertaking project: Rhiannon Owen
Project supervisor: Ellie Hickman
Brief outline of project:
Outline the types of activities
that will take place or items
fabricated i.e. face to face
interviews, public surveys,
water sampling, machining
vehicle parts, brazing etc.
To investigate the ways in which millenials use their smartphones
in physical retail stores, allowing for recommendations to be
made regarding how retailers can incorporate the devices to
enhance customer experience.
This will be achieved via 1:1, in-depth, face-to-face interviews.
Dates of study (from – to) October 2014 - 28th April 2015.
Location(s) of activity:
Country and specific area.
Coventry University.
Will the project involve laboratory work?
If yes, you will be required to complete separate risk assessment(s) prior to
carrying out any laboratory work.
No
Will the project involve workshop work?
If yes, you will be required to complete an induction and may carry out a separate
risk assessment(s) prior to carrying out any workshop work.
No
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Will the project involve travel? (If yes, complete this section as fully as possible.
The form may require review prior to travel to add
missing details)
No
Contact details at
destination(s):
Contact details of next of kin
in case of emergency:
Rhiannon Owen
Mobile: 07940229163
David Owen (father): 07930134957
Approximate dates of travel:
Your supervisor must have
details of travel plans once
confirmed.
N/A.
Arrangements to maintain
contact with the University:
Emergency contact
information:
School/Faculty contact (Daytime): 02476 887688
24hr University contact (Protection Service): 02476 888 555
Local healthcare/emergency services: 024 7696 4000
Has suitable travel insurance has been obtained? (Please attach a copy of
certificate)
N/A.
If EU travel, has EH1C card been obtained? N/A.
Has advice/vaccinations from GP been sought (where appropriate)? N/A.
Are medical kits required (i.e. in countries with poor healthcare facilities)? N/A.
Are there any warnings issued by the FCO* against travel to the area? N/A.
Have you registered with the FCO* service LOCATE? (British nationals only) N/A
*FCO = http://www.fco.gov.uk/en/travel-and-living-abroad/travel-advice-by-country/
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PLEASE USE THE HAZARD CHECKLIST AS A GUIDE WHEN COMPLETING THIS
SECTION.
Hazard Precautions to be used
Work factors:
E.g.: dealing with the public,
interviewing on sensitive issues,
lone working, driving, working
on boats, laboratory work;
biological, chemical hazards etc
N/A.
Site specific factors (in the field):
E.g.: remote area, construction
site, local endemic diseases,
political unrest, terrorism risk etc
If travel abroad see FCO* website
– list any risks greater than there
would be for the UK
N/A.
Environmental factors (in the
field):
E.g.: extremes of temperature,
altitude, weather conditions, tidal
conditions, cliffs, bogs, caves,
mountains etc
N/A
Equipment:
E.g.: operation of machinery, use
of specialist equipment, manual
handling/transportation,
compressed gases, etc
N/A.
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Other:
Detail any special arrangements
required, i.e. permissions
required, accommodation, travel,
catering etc
N/A.
This assessment must be reviewed before any significant project changes are made.
Assessment carried out by:
Signature: Rhiannon Owen
Position: Project Manager & Student
Date: 17/12/2014
Authorisation to proceed:
Signature:
Position:
Date:
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7.5 Interview Questions
Interview Questions
Have you ever shopped using a smartphone? o Who with? o What did you buy?
Describe to me how you tend to use your smartphone during your day-to-day life. o What would you say are the most common reasons (outside of calls and
texts?) that you have for using your smartphone?
Have you ever used your smartphone in a store?
What would you say is your most common reason for using your smartphone in a store?
Can you think of a time when you have used your smartphone in a store to assist in your shopping experience?
o What did you use it for? o What did you hope to achieve by using your smartphone? o Can you talk me through the different stages of the way in which you used
your smartphone on this occasion? (e.g. used an app, went onto a website, took a photo, scanned a code etc).
o What was the outcome? Did you achieve what you set out to? o Were you satisfied with your experience? How did it make you feel towards
the brand?
If/when you have used your smartphone in store, did you use any branded apps for the store you were in? This could be a barcode scanner, a loyalty card app etc.
o How did you find the experience? o Did it do what you expected it to? Was it a satisfactory experience? o Did it enhance your customer experience whilst you were in the store? o Were you satisfied with this experience? How did it make you feel towards
the brand?
If/when you have used your smartphone in store; did you go on the retailer’s website?
o What did you hope to achieve by doing this? o What was the outcome? Did you achieve what you set out to? o How did this affect your experience in the store? o Were you satisfied with the experience? How did this make you feel towards
the brand? o Was it the same experience as in the store?
Has there been an occasion where a brand has prompted you to use your smartphone in their store? Describe this occasion to me.
o Did you engage with this? What made you decide to/not to engage? o How did this make you feel towards the brand? o How did this alter your experience within the store? Was it more
positive/negative? o Are there any other occasions where you have been prompted to use a
smartphone in-store by a retailer?
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Are there any other occasions where you have used your smartphone in a retail environment that you would like to talk about?