brand experience in multichannel environments

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

03.05.2023 UAM - Multichannel brand experience 4

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?


Homo economicus

Hierarchy of needs

Branding theories

Consumer aesthetics

Experience economy

Hedonic consumptionEvolution of explaining theories in marketing science


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


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


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


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


• Channel synergies• Market coverage• Type of interaction

Multichannel strategiesImpacts on customer perceptions

• Breadth• Depth

Complexity

• Content• Offering• Datastreams

Integration MCD System


Proposal of field researchDimensions and structure


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


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


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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