• Title/Summary/Keyword: customer experience value

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Towards Understanding the Value of a Loyal Customer in Electronic Commerce: An Expectation-Disconfirmation Theory (전자상거래에서 충성고객 가치에 대한 이해: 기대 불일치 이론을 중심으로)

  • Coo, Chulmo;Koh, Chang E.;Lee, Dae Yong;Lee, Cheong-Ho
    • Knowledge Management Research
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    • v.9 no.2
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    • pp.129-146
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    • 2008
  • Customers' evaluation of Website with satisfaction is critical in electroniccommerce. Previous research has studied in a distinct approach; especially IT oriented constructs-perceived usefulness, easy of use and marketing oriented constructs-product, shopping experience, service quality. Despite those important previous studies regarding the usage and the purchase of goods and services, how consumers are satisfied and why consumers leave Web sites without purchasing have not been extensively researched. This study explored those determinants of consumer satisfaction with Web site using expectation-disconfirmation theory (EDT). The present paper extends the range of EDT from antecedents of expectation to consequence of satisfaction. The result suggests that experience and familiarity has an impact on expectation as well as perceived performance and satisfaction. Second, higher expectation makes a negative impact on disconfirmation of expectation. Third, positive disconfirmation of expectation makes a positive impact on satisfaction. Forth. satisfaction produces loyalty and repurchasing intention. Finally, loyal customer has stronger intention to repurchase than satisfied customer.

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Shopping Value, Shopping Goal and WOM - Focused on Electronic-goods Buyers (쇼핑 가치 추구 성향에 따른 쇼핑 목표와 공유 의도 차이에 관한 연구 - 전자제품 구매고객을 중심으로)

  • Park, Kyoung-Won;Park, Ju-Young
    • Journal of Global Scholars of Marketing Science
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    • v.19 no.2
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    • pp.68-79
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    • 2009
  • The interplay between hedonic and utilitarian attributes has assumed special significance in recent years; it has been proposed that consumption offerings should be viewed as experiences that stimulate both cognitions and feelings rather than as mere products or services. This research builds on previous work on hedonic versus utilitarian benefits, regulatory focus theory, customer satisfaction to address two question: (1) Is the shopping goal at the point of purchase different from the shopping value? and (2) Is the customer loyalty after the use different from the shopping value and shopping goal? We surveyed 345 peoples those who have bought the electronic-goods within 6 months. This research dealt with the shopping value which is consisted of 2 types, hedonic and utilitarian. Those who pursue the hedonic shopping value may prefer the pleasure of purchasing experience to the product itself. They tend to prefer atmosphere, arousal of the shopping experience. Consistent with previous research, we use the term "hedonic" to refer to their aesthetic, experiential and enjoyment-related value. On the contrary, Those who pursue the utilitarian shopping value may prefer the reasonable buying. It may be more functional. Consistent with previous research, we use the term "utilitarian" to refer to the functional, instrumental, and practical value of consumption offerings. Holbrook(1999) notes that consumer value is an experience that results from the consumption of such benefits. In the context of cell phones for example, the phone's battery life and sound volume are utilitarian benefits, whereas aesthetic appeal from its shape and color are hedonic benefits. Likewise, in the case of a car, fuel economics and safety are utilitarian benefits whereas the sunroof and the luxurious interior are hedonic benefits. The shopping goals are consisted of the promotion focus goal and the prevention focus goal, based on the self-regulatory focus theory. The promotion focus is characterized into focusing ideal self because they are oriented to wishes and vision. The promotion focused individuals are tend to be more risk taking. They are more sensitive to hope and achievement. On the contrary, the prevention focused individuals are characterized into focusing the responsibilities because they are oriented to safety. The prevention focused individuals are tend to be more risk avoiding. We wanted to test the relation among the shopping value, shopping goal and customer loyalty. Customers show the positive or negative feelings comparing with the expectation level which customers have at the point of the purchase. If the result were bigger than the expectation, customers may feel positive feeling such as delight or satisfaction and they would want to share their feelings with other people. And they want to buy those products again in the future time. There is converging evidence that the types of goals consumers expect to be fulfilled by the utilitarian dimension of a product are different from those they seek from the hedonic dimension (Chernev 2004). Specifically, whereas consumers expect the fulfillment of product prevention goals on the utilitarian dimension, they expect the fulfillment of promotion goals on the hedonic dimension (Chernev 2004; Chitturi, Raghunathan, and Majahan 2007; Higgins 1997, 2001) According to the regulatory focus theory, prevention goals are those that ought to be met. Fulfillment of prevention goals in the context of product consumption eliminates or significantly reduces the probability of a painful experience, thus making consumers experience emotions that result from fulfillment of prevention goals such as confidence and securities. On the contrary, fulfillment of promotion goals are those that a person aspires to meet, such as "looking cool" or "being sophisticated." Fulfillment of promotion goals in the context of product consumption significantly increases the probability of a pleasurable experience, thus enabling consumers to experience emotions that result from the fulfillment of promotion goals. The proposed conceptual framework captures that the relationships among hedonic versus utilitarian shopping values and promotion versus prevention shopping goals respectively. An analysis of the consequence of the fulfillment and frustration of utilitarian and hedonic value is theoretically worthwhile. It is also substantively relevant because it helps predict post-consumption behavior such as the promotion versus prevention shopping goals orientation. Because our primary goal is to understand how the post consumption feelings influence the variable customer loyalty: word of mouth (Jacoby and Chestnut 1978). This research result is that the utilitarian shopping value gives the positive influence to both of the promotion and prevention goal. However the influence to the prevention goal is stronger. On the contrary, hedonic shopping value gives influence to the promotion focus goal only. Additionally, both of the promotion and prevention goal show the positive relation with customer loyalty. However, the positive relation with promotion goal and customer loyalty is much stronger. The promotion focus goal gives the influence to the customer loyalty. On the contrary, the prevention focus goal relates at the low level of relation with customer loyalty than that of the promotion goal. It could be explained that it is apt to get framed the compliment of people into 'gain-non gain' situation. As the result, for those who have the promotion focus are motivated to deliver their own feeling to other people eagerly. Conversely the prevention focused individual are more sensitive to the 'loss-non loss' situation. The research result is consistent with pre-existent researches. There is a conceptual parallel between necessities-needs-utilitarian benefits and luxuries-wants-hedonic benefits (Chernev 2004; Chitturi, Raghunathan and Majaha 2007; Higginns 1997; Kivetz and Simonson 2002b). In addition, Maslow's hierarchy of needs and the precedence principle contends luxuries-wants-hedonic benefits higher than necessities-needs-utilitarian benefits. Chitturi, Raghunathan and Majaha (2007) show that consumers are focused more on the utilitarian benefits than on the hedonic benefits of a product until their minimum expectation of fulfilling prevention goals are met. Furthermore, a utilitarian benefit is a promise of a certain level of functionality by the manufacturer or the retailer. When the promise is not fulfilled, customers blame the retailer and/or the manufacturer. When negative feelings are attributable to an entity, customers feel angry. However in the case of hedonic benefit, the customer, not the manufacturer, determines at the time of purchase whether the product is stylish and attractive. Under such circumstances, customers are more likely to blame themselves than the manufacturer if their friends do not find the product stylish and attractive. Therefore, not meeting minimum utilitarian expectations of functionality generates a much more intense negative feelings, such as anger than a less intense feeling such as disappointment or dissatisfactions. The additional multi group analysis of this research shows the same result. Those who are unsatisfactory customers who have the prevention focused goal shows higher relation with WOM, comparing with satisfactory customers. The research findings in this article could have significant implication for the personal selling fields to increase the effectiveness and the efficiency of the sales such that they can develop the sales presentation strategy for the customers. For those who are the hedonic customers may be apt to show more interest to the promotion goal. Therefore it may work to strengthen the design, style or new technology of the products to the hedonic customers. On the contrary for the utilitarian customers, it may work to strengthen the price competitiveness. On the basis of the result from our studies, we demonstrated a correspondence among hedonic versus utilitarian and promotion versus prevention goal, WOM. Similarly, we also found evidence of the moderator effects of satisfaction after use, between the prevention goal and WOM. Even though the prevention goal has the low level of relation to WOM, those who are not satisfied show higher relation to WOM. The relation between the prevention goal and WOM is significantly different according to the satisfaction versus unsatisfaction. In addition, improving the promotion emotions of cheerfulness and excitement and the prevention emotion of confidence and security will further improve customer loyalty. A related potential further research could be to examine whether hedonic versus utilitarian, promotion versus prevention goals improve customer loyalty for services as well. Under the budget and time constraints, designers and managers are often compelling to choose among various attributes. If there is no budget or time constraints, perhaps the best solution is to maximize both hedonic and utilitarian dimension of benefits. However, they have to make trad-off process between various attributes. For the designers and managers have to keep in mind that without hedonic benefit satisfaction of the product it may hard to lead the customers to the customer loyalty.

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A Study on the Servicescape Design Process Creating the Whole Service Experiences (총체적 서비스 경험을 만드는 서비스 스케이프 디자인과정 연구)

  • Ahn, Ju-Young
    • Korean Institute of Interior Design Journal
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    • v.17 no.6
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    • pp.63-70
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    • 2008
  • The service sector is growing and service is complicated with various customer needs in the competitive markets. Bill Hollins urges that services must be designed. I believe that service experiences must be designed with servicescape as an environment surrounding services. Servicescape is the physical and social environments of service. Service experiences do not depend only on the aesthetic impression of physical servicescape. One of the main characteristics of services is that the most value of services are accomplished from interaction between customer and service encounters. The design of physical servicescape affects the interaction between customer and service encounters and the behavior of both customer and service suppliers' including social factors such as display emotions and the interpersonal distance between customers. Servicescape design should control tangible and intangible area of service events. In addition servicescape design creates customer's good experiences in the servicescape. This research proposes the possibilities and proper design process of servicescape design. Servicescape Design should control the activities including interrelations of participants, efficient service delivery process, and the united images of services for creating the satisfied service experience values.

A Study on the Influence of Customer Experience on the Intention to Stay in Store -The Moderating Role of Self-Construal Levels- (고객경험이 매장 내 체류의도에 미치는 영향에 관한 연구 -자기해석수준의 조절효과를 중심으로-)

  • Suh, Mun-Shik;Hur, So-Ram
    • Management & Information Systems Review
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    • v.38 no.3
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    • pp.211-225
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    • 2019
  • In recent years, consumers emphasize the various sensory experiences in the process of shopping rather than the practical value of shopping results. In order to satisfy consumers' diverse needs, retailers transform their offline stores into experiential spaces to encourage consumers to experience diverse and enjoyable experiences. This study divided the sub-factors of customer experience into hedonic experiences, functional experiences, and social interaction experiences, and investigated the effect of sub - factors of customer experience on consumers' enjoyment and intention to stay in off-line store. In addition, it is assumed that there will be a difference in the influence of three levels of customer experience on enjoyment according to the consumer's self-construal levels. As a result of this study, all of the hypotheses were supported except hypothesis 1 that the customer's hedonic experience has a positive effect on pleasure. In addition, as a result of verifying the moderating effect of self-construal levels, the self-construal level of consumers has no significant effect on the path of hedonic experiences on pleasure, but significant moderating effects of self-construal levels were identified in the pathways of functional and social interactive experiences on pleasure. The results of this study will be helpful in identifying and utilizing differentiated experience marketing strategies in the off-line stores that only offline channels can have in the fierce competition due to the diversification of distribution channels.

A Study on the Loyalty at Virtual Shopping Mall (가상점포 애호도에 미치는 영향요인에 관한 연구)

  • Oh, Sang-Hyun;Shin, Bong-Dae;Shim, Gyu-Yul
    • Journal of Global Scholars of Marketing Science
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    • v.8
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    • pp.315-339
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    • 2001
  • As a new environment, the Internet proposes to us the innovative change of our life. Recently, there has been much attention to the virtual shopping mall as a new distribution channel and marketing tool. In this study, the effect of satisfaction and commitment on loyalty at virtual shopping mall is investigated. Additionally, we examined the effects of the navigation, merchandise value, shopping experience, and community on satisfaction and commitment. The study results as follows: First, satisfaction is a function of navigation, merchandise value, shopping experience, and customer intimacy. Second, commitment is a function of shopping experience, customer intimacy, and community. Third, satisfaction and Commitment is significantly related to virtual shopping mall loyalty.

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ICT Development and Customer Participation in Fashion Industry (ICT 발전과 패션산업에서의 고객 참여)

  • Kim, Yun Jeong;Rha, Jong-Youn;Lee, Yuri
    • Fashion & Textile Research Journal
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    • v.17 no.6
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    • pp.907-918
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    • 2015
  • With the pervasiveness of digital environment and expansion of new media, ICT (Information and Communication Technology) leads the role of consumer to change from a passive customer into an active co-producer. As customer participation in the fashion industry increases, this study attempts to explore the cases of customer participation as a co-producer in fashion industry through analyzing business models of companies, including Threadless, Blank label, Cut on Your Bias, Acustom Apparel, Thinkgivers. The results show that customer participation is mainly facilitated through design participation in fashion industry, with different level of participation and IT as well as different contribution target. Compared to the past, consumer’s preference is reflected through participation before the stage of production. Results indicate three main characteristics of customer participation in fashion industry. First, value co-creations using customer experiences and understanding customer needs are important. Second, active online communication among customers are critical. Third, it is important to ensure customer’s own item. From a customer perspective, participation enables them to purchase their own distinctive product and offers exciting experience and satisfaction over the production processes, and compensation can be used to increase customer participation. On the other hand, companies using customer participation can take advantage of cost reduction in product development, inventory, and marketing. Customer participation, as a win-win strategy for business and consumer, is expected to expand further in the future with the development of ICT.

The Impact of Food Service Franchisee's Customer-oriented Activities on Hedonic, and Utilitarian Values and Loyalty

  • JANG, Hae-Jin;WOO, Sung-Keun;LEE, Yong-Ki
    • The Korean Journal of Franchise Management
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    • v.11 no.1
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    • pp.7-17
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    • 2020
  • Purpose - As the competition in the foodservice franchise industry and the market becomes fierce and the entry barrier is lowered, the foodservice franchisor and franchisees strive to increase their competitive advantage in the market. Therefore, the franchisor and franchisees use experience management strategies to enhance the positive experiences of customers visiting the stores. In this regard, this study examines the effects of customer-oriented activities (physical-, social-, health-, and service-oriented activities) on utilitarian and hedonic values, and loyalty using stimulus-organism-response (S-O-R) model and value-expectancy theory. Research design, data, methodology - The data were collected from panels of online survey company, who visited a foodservice franchisee within last month. The survey was conducted for about 15 days from March 7, 2019 to March 21, 2019, and about 3,500 e-mails and messages were distributed to ask for the survey. A total 412 responded and completed the questionnaires. Of the 412 completed questionaires, 12 were discarded due to missing and misinformation data and 400 were retained for further data analysis. Results --The results showed that social oriented activities, health oriented activities, and service oriented activities had positive effects on hedonic value, while physical oriented activities did not have a significant effect on hedonic value. Health oriented activities and service oriented activities had positive effects on utilitarian value, while physical oriented activities and social oriented activities had no significant effects on utilitarian value. Hedonic and utilitarian values also have a positive effect on loyalty. Conclusions - First, food service franchises should provide services and menus in consideration of the health of customers. When a customer visits the store, franchisee should provide more health-oriented food or materials and clean and comfortable conditions so as not to threaten the health of the customer. Second, the food service franchise must build a service-oriented system. Foodservice franchisor need to provide continuous service training not only to the franchisees, but also to the employees of the franchisees. Third, franchise should design a store where customers can form social exchanges through providing various information exchange to customers and making the store as a local community center.

A Comparative Study on the Innovation Strategy of User Experience and Life Satisfaction between Korea and China

  • Rho, Hyung-Jin
    • Journal of the Korea Society of Computer and Information
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    • v.22 no.3
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    • pp.155-162
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    • 2017
  • The purpose of this paper is to study renovation plan of value chain from a user's viewpoint by making practical application of digital technology in Korea and China. And it is surely meaningful to investigate the important motivation factors of continuous using smart-phone in two countries, and to analyze the improving effect toward to the quality of life in continuous using smart-phone. By this study we can expect the value improving effect of user experience. The results of hypothesis testing can be summarized as follows: First, the hypothesis that positive affect has a plus effect on pragmatic value is accepted in Korea and China. Secondly, the hypothesis that positive affect has a plus effect on hedonic value is accepted in two countries. Thirdly, the hypothesis that negative affect has a minus effect on pragmatic value is accepted in Korea, but rejected in China. Fourthly, the hypothesis that negative affect has a minus effect on hedonic value is accepted in two countries. Fifthly, the hypothesis that pragmatic value has a plus effect on life satisfaction is rejected in two countries. Sixthly, the hypothesis that hedonic value has a plus effect on life satisfaction is accepted in Korea, but rejected in China. Seventhly, the hypothesis that there is a difference in positive affect, negative affect, pragmatic value, hedonic value and life satisfaction between Korea and China is rejected in positive affect and negative affect, but accepted in pragmatic value, hedonic value and life satisfaction. In the competition among enterprises, user experience instead of goods themselves became influential as a differential factor. And many advanced enterprises began taking a serious view of customer's happiness and user experience improvement.

Effect of Naturopathy Quality on Customer Loyalty; The Mediation Effect of Service Value and Customer Satisfaction (자연치유서비스품질이 고객의 충성도에 미치는 영향; 서비스가치와 고객만족의 매개효과)

  • Kim, Choon Gyum;Kim, Jong Du
    • Journal of Convergence for Information Technology
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    • v.10 no.2
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    • pp.146-153
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    • 2020
  • This study is a fusion study combining service marketing in the field of Naturopathy and business administration to examine the impact of the quality of Naturopathy services on the loyalty of customers using it, and see if the service value and customer satisfaction are mediated between the two variables. Through these efforts, the government wanted to contribute to the basic provision of research on Naturopathy services and the development of related industries. For the purpose of the study, a range commonly used as Naturopathy was presented to those in their 20s to 50s nationwide, and a survey was conducted on the relevant experience. Data analysis uses the AMOS 24.0 program to identify the causal relationship between the variables and the statistical program SPSS 24.0. The study found that the quality of the Naturopathy service had a positive effect on the loyalty of the customers who used the service, and that the value of the service and customer satisfaction were mediated between the service quality and loyalty, and had a positive effect.

Factors Influencing the Attractiveness of Cosmetics Distribution Channels

  • YOON, Sang-Hyeon;SONG, Sang-Yeon;KANG, Myung-Soo
    • Journal of Distribution Science
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    • v.19 no.7
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    • pp.75-85
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    • 2021
  • Purpose: This study is focused on analyzing the key reasons why One-brand Shop has been shrinking and Multi-brand shop is rising from the perspective of the trend changes of customer behavior and distribution channel in the Korean cosmetic market. The purpose of this study is to examine the factors influencing the attractiveness of cosmetics distribution channels from a store perspective and a consumer perspective. Research methodology: This study conducted a survey to define the factors that influence the attractiveness of cosmetics distribution channels. A total of 300 samples were investigated. Results: The store factors that influence the attractiveness of the cosmetics distribution channel were product quality, shopping convenience, and store accessibility in the group of single-brand store preferences, and product diversity and store experience in the group of multi-brand store preferences. Conclusions: Core competing factors of One-brand shop include product value, shopping convenience and accessibility. In contrast, Multi-Brand shops offer core competing factors of diversified product portfolio and shop function experience. A new trend has been found that the customer segments of the price-oriented group and the pleasure-oriented group have become the mainstream segments in the Korean cosmetic market. In conclusion, Multi-brand Shops are suggesting better overall customer experiences in terms of distribution channel attractiveness and customer values.