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Brand experience in multichannel environmentsAn analysis of its construction and effects on brand equity
Autonomous University of MadridMaster in marketing managementMaster thesisInvestigative profileAcademic year 2014 – 2015Madrid, June 2015 Mark Rödiger
Natalia Rubio Benito (PhD)Author:Tutor:
Content• Introduction• Understanding hedonic consumption• Construction of brand experience• Multichannel strategies• Proposal of field research• Conclusion• References
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Introduction
MARKETING
Multichannel
environmentExperience economy
• New ICT• Possibilities of
interaction• Customer habits• New field of
investigation
• ‘Irrational’ factors of customer behaviour
• Hedonism• Marketing experiences
• Brand experience• Retail experience• Online experience• …
How can a multichannel brand experience be conceptualised, measured and managed?
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Homo economicus
Hierarchy of needs
Branding theories
Consumer aesthetics
Experience economy
Hedonic consumptionEvolution of explaining theories in marketing science
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Hedonic consumptionThe concept of ‘experience’ in marketing
Economic distinctions (Pine & Gilmore, 1999)
Economic offering Commodities Goods Services Experiences
Economy Agrarian Industrial Service Experience
Economic function Extract Make Deliver Stage
Nature of offering Fungible Tangible Intangible Memorable
Key attribute Natural Standardized Customized Personal
Method of supply Stored in bulk Inventoried after production
Delivered on demand
Revealed over a duration
Seller Trader Manufacturer Provider Stager
Buyer Market User Client Guest
Factors of demand
Characteristics Features Benefits Sensations
Characteristics of customer experiences with bibliographic support
Holistic Bustamante U., 2014; Gentile et al., 2007; Grewal et al. 2009; Iglesias et al., 2011; Pine Il & Gilmore, 1999; Schmitt, 1999
Personal/ Subjective Bustamante U., 2014; Carù & Cova, 2003; Gentile et al., 2007; Meyer & Schwager, 2007; Pine Il & Gilmore, 1999; Rose et al., 2012
Induced Brakus et al. 2009; Schmitt, 1999
Memorable Pine Il & Gilmore, 1999; Schmitt, 1999
Require customers implication
Carù & Cova, 2003; Gentile et al., 2007; Pine Il & Gilmore, 1999
Revealed over time Carù & Cova, 2003; Gentile et al., 2007; Hamzah et al., 2014; Holbrook & Hirschman, 1982; Meyer & Schwager, 2007; Pine Il & Gilmore, 1999
Brand Experience (Brakus et al., 2009)
Service Dominant Logic (SDL)• Service is the unique unit of exchange
• Co-creation of value• Value-in-use
“The experience IS the brand”
Influence CBBE
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Construction of brand experience
TimeSeries of customer-brand interactionsCustomers objectivesStages of decision processRetroalimentationAnticipated consumption
ChannelContact pointsChannel characteristicsCustomer objectivesPrimary and secondary effectsCustomer factors
Underlying dimensions of the construct
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Construction of brand experienceCustomer experience in physical retail environments
• Social interaction in retail environment (employees and other customers)• Social interaction in brand communitiesSocial
• Ergonomic perspective• Sensorial perspective (sight, touch, smell, hearing, taste)Physical
• Cognitive complexity• Cognitive accommodationCognitive
• State of mind• EmotionAffective
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Construction of brand experience
Cognitive state• Interaction speed• Telepresence• Challenge• Abilities
Affective state• Perceived control• Aesthetics• Perceived benefit
Customer experience in virtual environments
• State of ‘flow’• Simplicity and security• Trust
• Concepts require further investigation
The mobile experience• Similar to online experience • Convenience, media-richness, subjective customer
factors
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• Channel synergies• Market coverage• Type of interaction
Multichannel strategiesImpacts on customer perceptions
• Breadth• Depth
Complexity
• Content• Offering• Datastreams
Integration MCD System
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Proposal of field researchDimensions and structure
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Proposal of field researchResearch scenario
Adaption to e-Commerce
Experiential attributes
Highly hedonic shopping patterns
Important sector in Spanish industry
Fash
ion
indu
stry ZARA, Mango, Desigual,
H&M
• Manufacturer brands• Active in Spain
• Internationally known• MCD system including
stores, online and mobile
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Conclusion
• Definition of ‘multichannel brand experience’ as a holistic and multidimensional construct that is revealed over the time of a customer brand relationship and across different channels. Although being a subjective response to extern stimuli it requires a minimum of implication of the customer. Intensity of experiences may vary and brands should aspire to create memorable impact.
• In the investigation of multichannel brand experiences the two dimensions time and channel play a significant role.
• Experiences in one point of contact vary with the phase of the decision process and the customers objectives.• Channel attributes mainly define individual experiences but factors of the whole MCD system and customer
characteristics have influence on the global multichannel brand experience• Customers learn from experiences by comparing new information to what they already know. By this an impact on
CBBE can be achieved. • Analysis of multichannel brand experiences should include the channels physical retail, online and mobile.• The fashion industry is an adequate sector to conduct field research.
Main findings
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Conclusion
• Incomplete model• Static model of multichannel brand experience• Conduction of field research in one economic sector will lead to limitations in generality
• Further develop model (integration experience, multichannel behaviour)• Define structure of the model to test• Define variables of control• Establish scenario for field research
Limitations and future research
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