Experiential Consumption


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Experiential Consumption

  1. 1. AD 640 Marketing Theory PresentationExperiential ConsumptionFoundations, more European views and recent ideas Ezgi Merdin Ezgi Merdin - Bogazici University - 1 Marketing PhD
  2. 2. OutlinePIONEERS:• Holbrook, M.B. and Hirschman, E.C. (1982) The experiential aspects of consumption: Consumer fantasy, feelings and fun. Journal of Consumer Research 9(2), 132–140.and Supporting Article for Comparison:• Bettman, J. R. (1970) “Information Processing Models of Consumer Behavior”, Journal of Marketing Research 7 (August) 370–376REVISITING AND CRITICIZING THE CONCEPT:• Caru , A. and Cova, B. (2003) “Revisiting consumption experience: A more humble but complete view of the concept.” Marketing Theory 3(2), 267– 286.ON SUSTAINABLE EXPERIENCES:• Gentile, C & Spiller, N and Noci, G. (2007) “How to Sustain the Customer Experience: An Overview of Experience Components that Co-create Value with the Customer”, European Management Journal 25 (5) pp. 395–410 Ezgi Merdin - Bogazici University - 2 Marketing PhD
  3. 3. Fantasies, Feelings & Fun(Holbrook & Hirschman, 1982) Ezgi Merdin - Bogazici University - 3 Marketing PhD
  4. 4. 1. Environmental InputsInformation Processing Experiential View Goods with higher symbolic meaning, like entertainment, arts, leisure activities. Increased attention of research on singers, fashion, concerts etc. High level of interest and involvement like arts. •Nonverbal-multisensory stimuli •Syntactic aspects of message content: structure and style Concepts for Effective Marketing Management Ezgi Merdin - Bogazici University - 4 Marketing PhD in Nonbusiness Organizations
  5. 5. 2. Consumer InputsInformation Processing Experiential View •Subjective time resources, psycho- temporal expenditures •Pleasure principle, hedonic response, immediate pleasure or gratification & primary process •Right-brain, emotion, arousal, attention, interest, excitement Concepts for Effective Marketing Management Ezgi Merdin - Bogazici University - 5 Marketing PhD in Nonbusiness Organizations
  6. 6. 2. Consumer InputsInformation Processing Experiential View •Exploratory behavior, overt search, esthetics, stimulus complexity and hedonic value. •Subcultures, sensation seeking / creativity / religious world view / type A-B personality Concepts for Effective Marketing Management Ezgi Merdin - Bogazici University - 6 Marketing PhD in Nonbusiness Organizations
  7. 7. 2. Consumer InputsMethodological ProblemsTask definition problems:• need to develop better measures of hedonic response and pleasure• problems of reliability and validity due to situational fluctuationsInvolvement problems:• Construct validity of psychobiological measures• Discouraging convergent validities of brain indicesSearch activity problems:• Esthetic stimuli should be designed in a wide range• There must be a measure of subjective uncertainty• It should be the intervening variable that mediates stimulus complexity effect on hedonic response Concepts for Effective Marketing Management Ezgi Merdin - Bogazici University - 7 Marketing PhD in Nonbusiness Organizations
  8. 8. 3. Intervening Response SystemInformation Processing Experiential View •Subconscious and private processes, imagery, daydreaming •Latent content •Pleasure principle, hedonic response, immediate pleasure or gratification & primary process •Right-brain, emotion, arousal, attention, interest, excitement Concepts for Effective Marketing Management Ezgi Merdin - Bogazici University - 8 Marketing PhD in Nonbusiness Organizations
  9. 9. 2. Consumer InputsMethodological Problems• Belief in indirect methods to overcome sensitivity barriers to retrieve the subconscious• Use of quantifiable projective techniques on large samples for statistical tests Concepts for Effective Marketing Management Ezgi Merdin - Bogazici University - 9 Marketing PhD in Nonbusiness Organizations
  10. 10. Information Processing Models (Bettman, 1970)Models and Cues:The models consider• a memory consisting of an array of cues• various simple processes that operate on cues• a network or a discrimination net for combining the cuesFinally cues fall into 3 basic categories:• choice object attributes (color, price, weight...)• external environmental attributes (husband preference, word of mouth...)• internal cues, cognitive variables (perceived degree of risk) Ezgi Merdin - Bogazici University - 10 Marketing PhD
  11. 11. Information Processing Models (Bettman, 1970) Ezgi Merdin - Bogazici University - 11 Marketing PhD
  12. 12. Information Processing Models (Bettman, 1970) For testing, some questions from the model were then asked to the consumers until enough cues for specified. So the models were run on the data collected by protocols and approved for match. The measures include % of correct predictions and Turing’s test.Problems:• External cues are very general and afford a low level of explanation• Process of determining cues is very subjective• Attitudes and social elements are not present in the model explicitly but some of the components represent them implicitly.But still author argues individual consumers are modelled quite well. Ezgi Merdin - Bogazici University - 12 Marketing PhD
  13. 13. Revisiting Consumption Experience (Caru & Cova, 2003)• “A more humble but complete view of the concept”• bringing a critique to the issue of experience and consumption v. consumer experience.• Relationship as the new core of marketing In 1990s, relationship became the heart of the marketing discipline in place of the transaction, as a solid and innovative concept to come over mid-life crisis of marketing in 1980s. As an extension, notion of experience entered the field of the consumption, (by Holbrook & Hirschman, 1982) but not without its conceptual problems. Ezgi Merdin - Bogazici University - 13 Marketing PhD
  14. 14. Revisiting Consumption Experience (Caru & Cova, 2003)• Definitions of “experience” Outside of management science Encyclopaedia Universalis: “we learn a lesson from an experience” “we were changed by the experience” Scientifically, there is scientific experiment on objective facts. In philosophy, it is personal trial that transforms the individual. In sociology and psychology, it is a subjective and cognitive activity of the individual to develop. It is related deeply with its aesthetic form. There are “peak”, “flow” or “epiphanic experiences”. In anthropology and ethnology, it is a way of living culture, involving an intensity of personal feeling, that can be described only orally, subjectively and by interpretation. Ezgi Merdin - Bogazici University - 14 Marketing PhD
  15. 15. Revisiting Consumption Experience (Caru & Cova, 2003)• Definitions of “experience” In management science Holbrook&Hirschman: with important emotional significance, founded on the interaction with stimuli which are products or services. There are extraordinary experiences leading to a transformation of the individual. Firat&Dholakia: “Consumption is an act of production of experiences and selves or self-images... sensed emotionally as well as through reason.” immersion: became a key concept. “The postmodern consumer is said to take pleasure in being immersed in McDisneyfied banalities...” experiential consumption v. functional consumption: especially with the growth of services, the good that is purchased is an experience rather than a material object. And the consumers are feelers as well as thinkers. Ezgi Merdin - Bogazici University - 15 Marketing PhD
  16. 16. Revisiting Consumption Experience (Caru & Cova, 2003)• Time dimension of “experience” Arnould et al (2002) explains 4 major stages of experience: Pre –consumption Searching, planning, daydreaming, foreseeing or experience imagining Purchase experience Choice, payment, packaging, encounter Core consumption Sensation, satiety, satisfaction/dissatisfaction, experience irritation/flow, transformation Remembered Stories, arguments with friends, classification of consumption (nostalgia) memories experience• Thus, consumption experience cannot be reduced solely to shopping experience.• Thus, the postmodern (millenial) consumer is simply not what the rational model of marketing wanted him/her to be! University - model?) Ezgi Merdin - Bogazici (Bettman 16 Marketing PhD
  17. 17. Revisiting Consumption Experience (Caru & Cova, 2003)• Experience typologies: Max psychic energy Peak – epiphanic-ex. Csikzentmihalyi’s experience typology (1997) extraordinary experiences Ezgi Merdin - Bogazici University - 17 Marketing PhD
  18. 18. Revisiting Consumption Experience (Caru & Cova, 2003) CRITIQUE 1• This overemphasis on peak or epiphanic experiences is criticized. Immersion into flow has become the reference for the concept of experience.• Consumption experience v. Consumer experience There are three more categories of experience in addition to consumer experience: family experiences / friendship experiences / citizenship experiences SO: each consumption is not a market consumption experience. BUT marketing is only interested in the market context, thus consumer’s experience with the supplier and other consumers only. This excludes: reciprocity relations like gift giving and re-distribution relations like public services. Ezgi Merdin - Bogazici University - 18 Marketing PhD
  19. 19. Revisiting Consumption Experience (Caru & Cova, 2003)CRITIQUE 2Actually, each consumption experience is not memorable or unforgettable.This brings us to a dead-end in experience marketing?European romanticism:Romantic roots of experiential consumption date back to 18th century,favoring intense pleasures and high arousal v. mediocrity of everyday life.This meant further move away from pure functionalism of responding toneeds.“culturally biased north American vision of experience anchored inRomanticism”American society took these romantic values and led to a fear of boredom,every moment had to evoke strong emotions, thus led to dangerousentertainment etc... Ezgi Merdin - Bogazici University - 19 Marketing PhD
  20. 20. Revisiting Consumption Experience (Caru & Cova, 2003)SUM OF EUROPEAN CRITIQUESAgainst the ideology of obligation to be happy.The obligation of filling up all free time with astonishing experiences led todisappearance of the contemplative time. Every minute cannot be saturatedby activity. Joy of taking a walk.To avoid finishing in a dead-end similar to “relationship marketing” , take phenomena of experience full-breadth,from ordinary to extraordinary,both commercial and non-commercial. Ezgi Merdin - Bogazici University - 20 Marketing PhD
  21. 21. Sustaining Consumption Experience (Gentile et al, 2007) “A research article on how the right environment and setting for the desired Customer Experience should be created.” Transaction-based Continuous concept of Customer Relationship Customer Experience (rational – economic) (emotional & irrational customer behavior) Experience is the new competitive battleground, advantage. LITERATURE• Holbrook & Hirschman, 1982: brought neglected variables like emotion• Pine & Gilmore, 1999: the Experience economy commodity goods services experiences Companies need to provide the Merdin - Bogazici University - and setting for the desired Ezgi right environment 21 Marketing PhD
  22. 22. Sustaining Consumption Experience (Gentile et al, 2007)Definition of Customer Experience:“The Customer Experience originates from a set of interactions between acustomer and a product, a company, or part of its organization, which provokea reaction (LaSalle and Britton, 2003; Shaw and Ivens, 2005). This experience isstrictly personal and implies the customer’s involvement at different levels(rational, emotional, sensorial physical and spiritual) (LaSalle and Britton,2003; Schmitt, 1999). Its evaluation depends on the comparison between acustomer’s expectations and the stimuli coming from the interaction with thecompany and its offering in correspondence of the different moments ofcontact or touch-points (LaSalle and Britton, 2003; Shaw and Ivens, 2005).’’ Ezgi Merdin - Bogazici University - 22 Marketing PhD
  23. 23. Sustaining Consumption Experience (Gentile et al, 2007)Multidimensional Customer Experience:Building on the insights of Pinker’s psychological concept of modularity ofmind: sensation, cognition and affect, authors dimensionalize customerexperience :Sensorial Component sight, hearing, touch, taste and smell, Jamba Juice bars, Lush stores aesthetical pleasure, beautyEmotional Component Affective relation with the company Barilla, Kinder SurpriseCognitive Component Creativity, problem solving, revising Barbie (young woman doll) assumptionsPragmatic Component Usability and after-sales Apple iMac, WhirlpoolLifestyle Component Affirmation of values and beliefs by No logo products adopting lifestyle and behaviorsRelational Component Relation with other people as well as Disneyland, Ducati, ideal self, consuming together or haute couture Ezgi Merdin - Bogazici University - creating a community,PhD identity Marketing social 23
  24. 24. Sustaining Consumption Experience (Gentile et al, 2007)Utilitarian v. Hedonic Valuefunctional v. experiential Ezgi Merdin - Bogazici University - 24 Marketing PhD
  25. 25. Sustaining Consumption Experience (Gentile et al, 2007)Method and SampleA total of 2368 units were taken as the sample, 200 for each subset ofcompanies determined according to the type of knowledge embedded (tacit v.coded) and durability (non- medium- long).Firm side was retrieved by secondary sources and direct interviews andcustomer perceptions were gathered by questionnaires.RESULTS1. Utilitarian v. Hedonistic Value Overall the experiential features are perceived by customers almost as muchrelevant as the functional ones, indeed 7 products out of 12 have beenclassified as ‘‘balanced’’ and 2 products have been reported to be ‘‘hedonic’’:Harley Davidson and Smart. Ezgi Merdin - Bogazici University - 25 Marketing PhD
  26. 26. Sustaining Consumption Experience (Gentile et al, 2007) RESULTS 2. Experiential Components• the value associated with the sensorial component is substantially high (above the mean) across all the considered cases;• the value associated with the relational component does not vary sensibly across products and it is lower than expected. Ezgi Merdin - Bogazici University - 26 Marketing PhD
  27. 27. Sustaining Consumption Experience (Gentile et al, 2007) RESULTS 3. Commitment/Involvement Matrix• The analysis of the scores reported in association to the emotional, cognitive, pragmatic and lifestyle components suggested the definition of two variables that could account for the differences of relevance reported for the four components.• Customer involvement: the level of importance a customer attributes to an object, an action or an activity and the enthusiasm and interest• Customer commitment: the effort in terms of resources the customer makes to use the product Ezgi Merdin - Bogazici University - 27 Marketing PhD
  28. 28. Sustaining Consumption Experience (Gentile et al, 2007) RESULTS 3. Commitment/Involvement Matrix• absent or superficial: low involvement interpersonal relationships that are temporally limited to the time spent while using the product (e.g. PS)• collecting practices; relational component is more intense, low commitment level clubs for Swatch and Swarovski);• profound: high-involvement/high- commitment, communities of customers. Ezgi Merdin - Bogazici University - 28 Marketing PhD
  29. 29. Sustaining Consumption Experience (Gentile et al, 2007) CONCLUSIONS• A relevant part of the value proposed to customers is linked to experiential features• Living a positive Customer Experience can promote the creation of an emotional tie between a firm’s brand and its customers• This does not imply that customers neglect the importance of functionalities: the functional value (or utilitarian value) obtains almost always (except in two cases) a score near the experiential (hedonic) one. Ezgi Merdin - Bogazici University - 29 Marketing PhD
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