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Brand experience in multichannel environments
An analysis of its construction and effects on brand equity
Autonomous University of Madrid
Master in marketing management
Master thesis
Investigative profile
Academic year 2014 – 2015
Madrid, 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
Introduction
MARKETING
Multichannel
environment
Experience
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?
12.02.2016 UAM - Multichannel brand experience 4
Homo economicus
Hierarchy of needs
Branding theories
Consumer aesthetics
Experience
economy
Hedonic consumption
Evolution of explaining theories in marketing science
12.02.2016 UAM - Multichannel brand experience 5
Hedonic consumption
The 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
12.02.2016 UAM - Multichannel brand experience 6
Construction of brand experience
Time
Series of customer-brand interactions
Customers objectives
Stages of decision process
Retroalimentation
Anticipated consumption
Channel
Contact points
Channel characteristics
Customer objectives
Primary and secondary effects
Customer factors
Underlying dimensions of the construct
12.02.2016 UAM - Multichannel brand experience 7
Construction of brand experience
Customer 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
12.02.2016 UAM - Multichannel brand experience 8
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
12.02.2016 UAM - Multichannel brand experience 9
• Channel synergies
• Market coverage
• Type of interaction
Multichannel strategies
Impacts on customer perceptions
• Breadth
• Depth
Complexity
• Content
• Offering
• Datastreams
Integration MCD System
12.02.2016 UAM - Multichannel brand experience 10
Proposal of field research
Dimensions and structure
12.02.2016 UAM - Multichannel brand experience 11
Proposal of field research
Research scenario
Adaption to e-Commerce
Experiential attributes
Highly hedonic shopping patterns
Important sector in Spanish industry
Fashionindustry
ZARA, Mango, Desigual,
H&M
• Manufacturer brands
• Active in Spain
• Internationally known
• MCD system including stores,
online and mobile
12.02.2016 UAM - Multichannel brand experience 12
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
12.02.2016 UAM - Multichannel brand experience 13
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
12.02.2016 UAM - Multichannel brand experience 14
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Understanding Multichannel Brand Experience Construction and Effects

  • 1. Brand experience in multichannel environments An analysis of its construction and effects on brand equity
  • 2. Autonomous University of Madrid Master in marketing management Master thesis Investigative profile Academic year 2014 – 2015 Madrid, June 2015 Mark Rödiger Natalia Rubio Benito (PhD) Author: Tutor:
  • 3. Content • Introduction • Understanding hedonic consumption • Construction of brand experience • Multichannel strategies • Proposal of field research • Conclusion • References
  • 4. Introduction MARKETING Multichannel environment Experience 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? 12.02.2016 UAM - Multichannel brand experience 4
  • 5. Homo economicus Hierarchy of needs Branding theories Consumer aesthetics Experience economy Hedonic consumption Evolution of explaining theories in marketing science 12.02.2016 UAM - Multichannel brand experience 5
  • 6. Hedonic consumption The 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 12.02.2016 UAM - Multichannel brand experience 6
  • 7. Construction of brand experience Time Series of customer-brand interactions Customers objectives Stages of decision process Retroalimentation Anticipated consumption Channel Contact points Channel characteristics Customer objectives Primary and secondary effects Customer factors Underlying dimensions of the construct 12.02.2016 UAM - Multichannel brand experience 7
  • 8. Construction of brand experience Customer 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 12.02.2016 UAM - Multichannel brand experience 8
  • 9. 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 12.02.2016 UAM - Multichannel brand experience 9
  • 10. • Channel synergies • Market coverage • Type of interaction Multichannel strategies Impacts on customer perceptions • Breadth • Depth Complexity • Content • Offering • Datastreams Integration MCD System 12.02.2016 UAM - Multichannel brand experience 10
  • 11. Proposal of field research Dimensions and structure 12.02.2016 UAM - Multichannel brand experience 11
  • 12. Proposal of field research Research scenario Adaption to e-Commerce Experiential attributes Highly hedonic shopping patterns Important sector in Spanish industry Fashionindustry ZARA, Mango, Desigual, H&M • Manufacturer brands • Active in Spain • Internationally known • MCD system including stores, online and mobile 12.02.2016 UAM - Multichannel brand experience 12
  • 13. 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 12.02.2016 UAM - Multichannel brand experience 13
  • 14. 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 12.02.2016 UAM - Multichannel brand experience 14
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