28
Research Study on Experiential Marketing Course name: Marketing Theory - BUSE3004 Lecturer: Markie Venter Due date: 6 th November 2015 Group members: Kim Mentor: Motlalepule Mahlare Paballo Maiphetlho 1

Research Study - Experiential Marketing

  • Upload
    wits

  • View
    1

  • Download
    0

Embed Size (px)

Citation preview

Research Study on Experiential Marketing

Course name: Marketing Theory - BUSE3004

Lecturer: Markie Venter

Due date: 6th November 2015

Group members: Kim Mentor:

Motlalepule Mahlare

Paballo Maiphetlho

1

Table of Content

Introduction and background Page 3

Theory Page 4 - 18

Managerial Implications Page 18 - 19

Conclusion Page 19 - 20

Reference Page 21

2

Introduction:

The use of the Internet by both consumers and businesses has significantly changed

the retailing marketplace (Grewal & Levy, 2009). Many companies in a variety of

industries have begun to move away from traditional marketing towards creating

experiences for their customers. Over the past 25 years experiential marketing has

found increasing favour among researchers and practitioners who consider it an

innovative approach for companies and brands to both fulfil customer expectations and

to create and maintain a competitive advantage (Caru’ & Cova, 2006a; Tynan &

Mclcechnie, 2009). Traditional marketing, which has developed in response to the

industrial age, presents on rational, engineering-driven, analytical view of customers,

products and competition. Today however information, branding, and communications

revolution calls for a different approach. ‘Experiential marketing is everywhere’ (Schmitt,

1999a, pg. 53) with the above in mind, the aim of this study is to better understand the

concept experiential marketing and furthermore the practical implications for such a

concept.

Schmitt (1999) formally brought up the term experiential marketing: “through

observation or participation in event, the individual customer is stimulated to generate

motivation, produce conceptual recognition or consuming behaviour and enhance

product value”. Textbook definition experiential marketing is based on the entire

experience a consumer has with a product or service. It focuses on allowing the

consumer to try the service or product for himself. Experiential marketers control the

environment in which this happens to some degree, but they want the consumer to

make his own judgments about the product or service. Experiential marketing is

therefore aimed at improving a product’s positioning by acting on the experiential

dimensions of consumption. Consumer satisfaction is then affected by the experience of

products or services offered by the enterprise. It also differs from traditional marketing in

four important ways which are all aimed at a broader, more holistic view of the

consumer. These four different ways include customer experience, consumption as a

3

holistic experience, customers as rational and emotional animals and those methods

and tools are eclectic. (Schmitt, 1999, vol.10, #2)

Theory:

Marketing management philosophies has advanced from product concepts, selling

concepts, production concepts, societal marketing concepts and relationship marketing

concepts to what is known nowadays as experiential marketing (Tsaur et al. 2006). Pine

and Gilmore (1998) proposed that experiential marketing concept comes from the

experience economy. Pine and Gilmore (1998) believed that there is a difference

between the experience economy and the traditional economy, which includes

agricultural economy and industrial economy, were the pursuit of sensual experience

economy is based on the interaction of consumer and product/brands, creating and

shaping activities that are worthwhile to consumers. There are four stages in the

progression of economic value, which are referred as commodities, goods, services

experiences and the disclosed stage of experience economy is developing, using long

term perspectives (Pine & Gilmore, 1998). Pine and Gilmore also claim that the key

attribute are natural, commodities, to tangible and standardized, goods, to intangible

and customized services which can be memorable and a personal experience.

Experiential marketing is a developing marketing philosophy, firms and brands uses and

adopt this concept to create a memorable experience for their customers and potential

consumers (Tsaur et al. 2006). Traditional marketing views consumers as rational

subjective decision makers who care about the functional features of a product as well

as the benefits. Schmitt (1999a) argues that experiential marketers, views consumers

as both rational as well as emotional human beings who also look for achieving a

pleasurable experience. Therefore, experiential marketing can be summed up into four

key ways which are focusing on consumer experiences, recognizing both rational and

emotional drivers, treating consumption as a holistic experience and using eclectic

methodologies (Schmitt, 1999a). Schmitt (1999a) states that the focus shift of

experiential marketing has occurred as results of three stimulations developments which

are the omnipresence of information technology, the supremacy of brand and the

ubiquity of communications and entertainment.

4

The four key ways of experiential marketing is all aimed at a broader, more holistic view

of a consumer. In order to get a much wider view, marketers need to focus on

customers experiences. These experiences result from encountering or living through

certain situations and they also provide emotional, behavioural and sensory values that

replace functional values. Marketers no longer look at products in isolation but rather in

a broader sociocultural context (consumption as a holistic experience) As much as

customers are driven by rational choice, they are also driven by emotions as some

purchases are directed at various feelings and fun. Experiential marketers are diverse

and multifaceted, they are not bound to one methodology and some are highly

analytical and quantitative. (Schmitt, 1999, vol 10, pg21)

Schmitt (1999a) derived five different experiences from the strategic experience module

also known as the SEMs. The strategic experience module can be used by marketers

therefore can create customers which refer to sensory experiences (sense), affective

experiences which refer to (feel), creative intellectual experiences which refer to (think),

physical experiences, behaviours and lifestyles which refer to (act) and social identity

experiences that may result in relating reference group or culture, which refer to

(relate). Each of these has its own objectives, internal structure, and principles.

According to Schmitt (1999a) experiences can be defined as private events that occur in

reaction to some stimulation, which can be provided by marketing influences before and

after purchase, and they usual result is from consumer direct observation or/and

participation in event whether being real, dream-like or virtual. Additionally, experiences

are complex and often not self-generated but are induced. Lebergott (1993) states that

economic activity aims not only for output, but for experience via consumption. Abbott

(1955) argues that what consumers really desire is not only the product but the

satisfying experience as well. Schmitt (1999a) suggests that consumers take the

functional features, the benefits and the product quality as a given nowadays and

expect more. Consumers want product communication and marketing campaigns that

excite their senses and make their hearts skip a beat and stimulate their minds all at the

same time. Consumers want products communication and marketing campaigns that

5

they can relate too, and incorporate into their lifestyles. They want the product,

communication and marketing campaigns that deliver an experience.

Schmitt (1999a) proposed the strategic experience module and suggest managers and

marketers use to create different types of customer experience for the targeted

customers. Yang (2009) further discusses the strategic experience module in depth.

Sense marketing is focused on the five senses which are site, hear, smell, taste and

touch. Sense marketing often is stimulated through a sense which may provide

excitement, pleasures and satisfaction of aesthetics. For example, smooth type of music

in an arts gallery (Yang, 2009). The objective of using sense marketing is to create a

sensory experience, through the five senses, which could have a positive effect

(Schmitt, 1999a). Feel marketing focuses on the inner emotions and feelings so that an

emotional experience can be created. Feel marketing needs to be operated by

determining and understanding the different sorts of stimulations that trigger emotions

that may encourage consumers to participate automatically. For example, Spur creates

a family environment and encourages customers to share a meal with the family (Yang,

2009). People seek pleasure and would generally avoid feeling or pain and this is the

core principles of life. Feel marketing objective of creating an affective experience that

comes from a mildly positive moods linked to a brand to emotions of joy, pride and

happiness (Schmitt, 1999a). Think marketing focuses on intelligence, aimed to create

cognitive thinking and to solve customers in a creative way. Think marketing

encourages customers to think more about their concerns and to be creative to trigger

them to weigh the enterprise and product (Yang, 2009). The objective of think marketing

is creating intelligence, problem solving experience that may engage customers

creatively (Schmitt, 1999a). Act marketing focuses on the physical experiences, lifestyle

and interactions between customers and product (Yang, 2009). The objective of act

marketing is to enhance customer’s lives by targeting their physical experiences while

showing them alternatives ways to interact, do things and possibly alternative lifestyles

(Schmitt, 1999a). Lastly relate marketing includes the sense, feel, think and act

marketing. Relate marketing focuses on the ideal-self; this avoids personal personalities

or person experiences. Relate marketing often demands self-improvements, such as an

ideal-self, of a personal desire and demanding on others, (such as spouse, friend,

6

classmates, co-workers) to show more favourable feelings in order to connect to people

in a wider social circle or subculture (Yang, 2009).

With the intention that strategic experience module could have a positive effect on

customers, this would result in customer satisfaction (Tsaur et al. 2006). Customer

satisfaction can be defined as the result of a consumer’s perception of the value in a

transaction or relationship (Blanchard and Galloway, 1994). It is important for managers

to achieve customer satisfaction, as this will would result in customer loyalty and there

after profitability. Customer satisfaction is related to customer loyalty and customer

loyalty is related to profitability; this is the service profit chain hypothesize (Hekett et al.,

1994). The main aim in an organization is to gain maximum profits, with loyal

customers; organizations could a relationship with the customers which could impact

positive recommendations through word of mouth advertising (Reicheld and Sasser,

1990).

According to Blackwell, Miniard, & Engel (2001) intention was defined as subjective

judgments about how people will behave in the future. Behavioral intentions can be

views as indicators whether customers will remain with the firm/brand or not (Zeithaml,

Berry, & Parasuraman, 1996). Studies have shown that customer satisfaction has led to

a positive effect on the behavioural intention (Brady & Robertson, 2001; Cronin &

Taylor, 1992). The structural model of conceptual framework shows the relationship of

the SEMs and the reactions of behavioural intention and customer satisfaction. (Tsaur

et al. 2006)

7

Schmitt (1999a) and Pine and Gilmore (1998) views on the strategic experience module

(SEM) is the general conscious for experiential marketing, Brakus et al. (2009) has a

similar but different view on experiential marketing, in terms of brand experience.

8

Brakus et al. (2009) proposed that brand experiences are shaped by brand-related

stimuli that constitute “subjective, internal consumer responses’, which are sensations,

feelings and cognitions and behavioural responses. Initially there were five dimensions

which were sensory, affective, intellectual, behavioural and social. This was reduced to

four dimensions which are sensory, affective, intellectual and behavioural after further

research was done. Figure 2, shows the four dimensions and tested on consumers to

see the intensity of the consumers’ brand experience. In the results, it shows that “brand

experience seems to be a strong predictor of actual buying behaviour” compared to

brand personality, brand experience has a more effective measure to customer

satisfaction (Brakus et al., 2009).

Figure 2 - Four Factor Model

9

The proliferation of product offerings has unravelled a competition ground for retail to

look beyond just the augmented product (Kotler, 1974). That goes with saying

that ,along with the ways previously executed to add value (such as supplying a

customer service numbers on the packaging ) intensifying competition, has meant that

managers have had to expand beyond a product focus and gravitate towards a focus on

customer experience (Puccinelli et al., 2009). Research done on extending Kotlers

10

(1974) early work on “Atmospherics as a marketing tool” has seen the application of the

Pleasure, Arousal and Dominance Model of Mehrabian and Russel (1974) by Donovan

and Rossiter (1982). A realisation that there is far greater complexities to the richness of

customers experience than has become apparent. In particular, the evolution of sensory

marketing approach to the enhancement of customer experience (Ganda, 2012;Hult

´en,2011;Hult´en,Broweus,&vanDijk,2009; Krishna, 2010, 2012, 2013; Lindstrom,

2005a, 2005b; Soars, 2009; Spence, 2002). This approach has been validating further

by recent findings within the field of neuroscience (Yoon et al., 2012). Through the

development of more sensory touch points with customers, there has been a

broadening of the gap of differentiation in the marketplace (Neff, 2000; Spinney, 2013).

Customers perceive the service scope as a whole (Bitner, 1990; Mattila & Wirtz, 2001),

meaning that their perception of value and their subsequent behaviour is influenced by

multiple store environment cues (Baker, Parasuraman, Grewal, & Voss, 2002). This

section, though it may touch on other general ideas, primarily focusses on the sensory

aspect of experiential marketing, with specific emphasis on the how sensory cues

influence Cognitive, Affect and Behaviour. The framework is broken down further into

General Positivity and

Optimal Stimulation.

VISUAL ATMOSPHERICS

For a long time ,

visual cues have been

thought to be the most

dominant of sensory

cues, however , recent research suggests otherwise(Calvert, Spence, & Stein,

2004) .As true as this may be , psychological research has regarded visual

atmospherics evaluated by Kotler(1974 ) effective in influencing the level of stimulation

of people within a place (Lehrl et al., 2007). Visual cues such as the colour, size, shape,

and brightness of retail space help steer and draw attention as well as affect ones

emotional state (Evans, 2002).

11

Affective

General Positivity. Visual cues often deliver positive effects on shopping behaviour.

Bellizzi and Hite (1992) Customers in retail spaces were reported to prefer blue over red

because they find it more soothing. A relaxed state would in return encourage purchase

intentions and promote longer browsing.

Cognitive

Association. The use of colour triggers association and can help solidify brand

identity .For example; Samsung apparently uses the same green colour in all of its

stores (Trivedi, 2006). The intent to convey meaning about a brand can also be done

through colour as certain colours represent certain ideas( e.g. Blue is closely linked to

functional products whereas Red would work better as for sensory

products ) ,Bottomley & Doyle, (2006).

AUDITORY ATMOSPHERICS

The ease of control (and modification ) of music has led it to become an element

studied more than any other sense(e.g., see Bruner, 1990; Garlin & Owen, 2006;

Herrington & Capella, 1994; North & Hargreaves, 2008, 2010; Spence, for reviews). The

distinguished physical properties and emotional tones determine the musical influence

and sound (Kotler, 1974). This opens us up to a field of “audio branding “ which is

currently in its maturing phase ,just think of the tone that comes with a Skype call or the

whistle one hears when a message is received on a Samsung Smartphone. These are

examples of how entities that can build a brands’ auditory signature (Aminoff, 2013;

Lindstrom, 2010).

Affective

General Positivity. There has been clear evidence in this domain that supports the

effectiveness and general positive affect of music. Grewal, Baker, Levy, and Voss

(2003) illustrated that in a jewellery stores, playing classical music as opposed to

silence enhanced subjects’ perceptions of the store atmosphere. Earlier research reifies

12

this in a study that proved that shoppers preferred background music as opposed to

silence (Linsen, 1975).

Optimal Stimulation. Kn¨oferle, Herrmann, Landwehr, and Spangenberg (2012)

propose that the mode of the music perpetuates a certain emotion. Results showing that

slow tempo music played in a minor mode have led to increased sales, while no such

effect was achieved for music played in a major mode. Auditory cues share similar

complexities to those or visual cues as they also weigh heavily on the customers

personal tastes (Berlyne, 1974; North & Hargreaves, 1995). Aficionados of classical

music will be attracted to the more intricate pieces than their pop-music counter parts.

An earlier study, addressing the effects of background music on shopper behaviour,

further validated customer complexity as it reported that increasing the volume of music

playing in a supermarket resulted in shoppers spending less time in store (Smith &

Curnow, 1966), but it did not affect overall customer satisfaction or sales. Perhaps the

louder music was more stimulating and encouraged more expeditious behaviour.

Background music may also influence social interactions between the customers and

staff (Dub’e, Chebat, & Morris, 1995) and lessens the perceptions of wait time.

Cognitive

Association. Sound can be used to influence ones behaviour ,and overall purchase

pattern (Areni & Kim, 1993; North, Hargreaves, & McKendrick, 1997, 1999) .For

example, music believed to signify a more posh and “upmarket” connotations (e.g.,

classical as opposed to Top-40 pop) resulted in a significant increase in the purchase in

a wine store (Areni &Kim1993). The type of music played can serve as an excellent

signal to the brand's positioning and can be used to create a particular impression for

customers that make them willing to spend more in a restaurant (North, Shilcock, &

Hargreaves, 2003;Spence&Piqueras-Fiszman,2014;Wilson,2003) . An interesting result,

despite the substantial change in behaviour, was that North and his colleagues found

that none of the customers responded to have had their purchase decision affected. It

was concluded that that these findings may suggest that product category can therefore

be strongly effected by as auditory cues in products that themselves experiential in their

own nature, and auditory soundscapes can assist immensely in achieving that.

13

Customers making purchases without sufficient information to make prior product

evaluations tend to rely on extrinsic cues. With consideration to what limits come

through packaging innovation, auditory cues can present a best case scenario leading

to product purchases as a result of demonstrated product atmosphere in artificial ,

immersive spaces .(Piqueras Fiszman & Spence, 2012a)

OLFACTORY ATMOSPHERICS

Ambient fragrances have to ability to alter behaviour and perception on a surface level;

however the same can be done without the conscious awareness of a shopper

(Mandler, 1975; Ward, Davies, & Kooijman, 2003). It was proven under laboratory

conditions that smells that can’t be detected by people exert a more substantial impact

on behaviour that those that can be perceived (Li, Moallem, Paller, & Gottfried, 2007).

Our sense of smell only allows us to comment on mostly intensity, pleasantness and

perhaps go as far as determine whether something is edible or not (e.g., Lawless &

Engen, 1977; Yeshurun & Sobel, 2010). This presents a unique challenge because it

proves more difficult to manipulate olfactory atmospheres than it is all other

atmospheres.

Affective

General Positivity. As opposed to other cues, the olfactory cue is often perceived with

a hedonic charge (i.e. either positive or negative). Spangenberg, Crowley, and

Henderson (1996) report that customer’ intentions to purchase a backpack increased

significantly upon the presence of an ambient scent. The data captured from simulated

shopping tasks suggests that the likelihood of purchase increased when shoppers tried

on shoes in a floral scented room as opposed to a non-scented rooms (Hirsch, 1990;

Miller, 1991) Samsung has been reported to have introduced a signature honeydew

melon in its stores to match the green colour scheme mentioned previously (Trivedi,

2006) , while the Sony Style store, features “the subtle fragrance of vanilla and

mandarin orange—designed exclusively for Sony—wafts down on shoppers, relaxing

them and helping them believe that this is a very nice place to be” (Fetterman &

O’Donell, 2006).

14

Cognitive

Association. Olfactory cues may just well be the most powerful sensory cue that can

be harnessed to create memory associations. With scents being able to be recalled

from memory even decades after smelling it for the first time (Goldman & Seamon 1992;

Laird 1935).

Spangenberg, Sprott, Grohmann, and Tracy (2006) investigated the effect of scents and

the resultant outcome in sales when presented to different genders. He and his

colleagues added a vanilla scent to a women’s department and a sweet floral scent to

the men’s department of the store (this after a protest that ensure that those scents

appealed to each gender). The sales realised in the two sections almost doubled in

each section , however , a negative trend appeared when the two scents were

switched .It’s essential to recognise the importance of what the role that cultural

difference play in our associations as certain fragrances can represent certain meanings

and connotations to certain individuals (Ayabe-Kanamura et al., 1998; Fost, 1991;

Trivedi, 2006). An increasing number of retailers are realising the benefit of adding a

fragrance to the stores to increase the number of sensory touch points with the

customer (Lindstrom, 2005a, 2005b; Neff, 2000) and, of course, to engage in scent

marketing (Hult´en, Broweus, & van Dijk, 2009; Morrin,2010).

TACTILE ATMOSPHERICS

Tactile atmospherics is described by Kotler (1974) in terms of the sensory-discriminative

qualities of smoothness, softness, and temperature. An attributing success factor of The

Gap store has been the fact that they allow shoppers to handle their merchandise

(Underhill, 1999). As minute as it may appear, even the slightest contact can be

beneficial (Gallace & Spence, 2014; Martin, 2012). A concerning factor of tactile

exploration for some may well be that too many people have come in contact with the

product which can lead to “tactile contamination”. This is a relevant concerned because

it plays on at a subconscious level. For the same reason that people tend to pick out

clothing that is further down on the pile or perhaps reach for a newspaper other than the

one at the top of the pile (Argo, Dahl, & Morales, 2006).

15

Affective

General Positivity. It is clear that customers enjoying having the option of picking up

and handling products before purchase as research has shown that there exists a

higher likelihood of purchase once the customers experience the product through touch

(Grohmann, Spangenberg, & Sprott, 2007; Hult´en, 2012; Peck & Childers, 2006;

Spence & Gallace, 2011; Underhill, 1999). There has been relatively less research done

on store temperature thus far, however, one study measured the temperatures on a

cross-section of Manhattan stores (for example Bergdorf, Macy’s, Old Navy and the

likes) and it appeared that temperatures varied as a function of the price of the

merchandise on offer- with a higher price relating to colder air conditioning in the store

(Fiore, 2008; Howes, 2005; Timmerman, 1981). This may be a strategy worth

considering for retailers as colder and more ambient temperatures are related to more

emotional decision making and a greater favour for hedonic options while warmer

temperature tend to lead to more cognitive decisions and utilitarian options(Hadi, Block,

& King, 2013).

Cognitive

Association. Recent research in cognitive neuroscience has presented compelling

evidence of a link between tactile stimuli and certain colours (Ludwig & Simner, 2013),

such that for universal cross-modality among cues exists different sensory modalities

(Spence, 2011a, 2012a). In particular, it appears that smoothness, softness, and

roundness were more closely associated with greater luminance (or proportion of white

as compared to black) and chroma (or saturation of the colour).

Touch embodies an essential and perhaps underestimated and underutilised element of

store atmospherics. The complete feel of everything from store temperature to the

comfort of the furniture in it plays a vital role in the delivery of subtle messages about

the offerings (Ackerman, Nocera, & Bargh, 2010).

TASTE ATMOSPHERICS

16

Kotler (1974) considered taste to be an unimportant in relation to store atmospherics,

however , this is bearing in mind that his study was more based on store atmospherics

and thus wasn’t steadfast on defining taste in relation to atmosphere. His work also

came long before the arrival of culinary artists such as Bompas & Parr

(http://bompasandparr.com/ ) who became well known for a breathable installation that

release alcohol and allows customers to go to an in store bar that lets you get tipsy on

its air . These have become popular and have appeared as popups within various

department stores globally .A gin and tonic mist tent became a huge draw for customers

at one such London department store. This lead to great amounts of publicity for the

store(http://www.wired.com/2015/08/brilliant-bar-gets-drunk-alcoholic-cloud/ )The use of

taste within atmospherics brings great complexities as a result of subjectivity among

those it used on .This of course becomes easier if food is your offering and you allow for

variety and the consumer to select what they prefer most.

Affective

General Positivity. The use of taste atmospherics can create tremendously visceral

reactions as a single negative experience of something can lead to constant long term

avoidance (Garcia, Kimeldorf, & Koelling, 1955). On the other side of things, a positive

experience can sometimes deliver richer and more realistic memories than a single

auditory, visual, olfactory, or tactile experience. An empirical look at marketing and taste

by Wilcox, Roggeveen, and Grewal (2011) assessed whether people related information

about country of origin and price with a product sampling experience. It was found that

when information was presented prior to the experience (whether positive, i.e. Italian

wine or Swiss chocolates, or negative, i.e. Indian wine or Chinese chocolates) it

influenced the overall product experience and valuation thereof .When the information

was contrasted, i.e. provided after the experience, it resulted in less positive results than

when less positive information was provided prior to the experience. Thus, the

experience of chocolate was better when it was said to be of Swiss origin than it did

when it was said to be of Chinese origin .Learning about the enhanced the product and

attribute and thus formed a greater experience.

17

Creating a wholesome experience that is stimulating to the point where customers

immerse themselves in the product you are offering is what marketers would like to

achieve when using experiential marketing. This creates positive attitudes and

behaviours. In a study by Homburg, Imschloss, and K¨uhnl (2012), customers were

asked to imagine browsing in a store and had an opportunity to manipulate store

sensory features within a particular description. The results suggested that a

congregant combination of two atmospheric stimuli proved most positive outcomes and

once a third congregant stimulus was put into play, some negative outcomes were

recorded. The authors attributed the negative outcome to the level of stimulation

because when it was later tested, it proved that moderate levels of stimulation when

three stimuli are use proved satisfying for customer. Of course customer complexity can

never be neglected as individual preferences will always exist within a market .Providing

a variety of options in exciting, entertaining experiences that come along with various

other core retail offerings one has a higher chance of succeeding in creating just the

right balance and draw people, which is the most likely reason why malls complexes do

this effortlessly (Levy, Weitz, &Grewal, 2014). A balance needs to be achieved, one that

creates enough sensory touchpoints to engage the customer while avoiding a sensory

overload. Abercrombie & Fitch’s dominant multisensory experience provide quite

popular among the youth as they seemed to be more receptive to high levels of sensory

stimulation (Hult´en,Broweus,&van Dijk, 2009; Morrison & Beverland, 2003) . A study on

their parents showed that the sensory overload was too much to bear (Morrin&Chebat,

2005; Soars, 2009). Segmenting the marketing into those that require sensory

stimulation (so-called “sensory junkies,” Dunn, 2007) and those that would prefer a

more tranquil shopping experience (Middleton, 2002) may prove a worthy exercise for

businesses.

Managerial Implications:

When dealing with the SEM’s managers can implement experience providers (ExPros)

which communicate, have visual as well as verbal identity, co-branding as well as

various signage. The best way to manage ExPros is for them to be coherent, consistent

over time and pay attention to detail. Using this will allow that the experience is created

18

to its full potential. The managerial implications that can be used when using the

evolutionary sensory marketing approach are: Visual – Managers need to evaluate the

returns on ROI that mass investment into visual stimuli would create beforehand. In

some cases, the notation of visual cues being a dominant sensory receptor is not

necessarily true and it may be more advantageous to invest in other, nonvisual cues. Auditory – The use of music can be used to curb the feeling of extended waiting times

of customers. During peak times, music can also be used to move traffic quicker and

encourage expeditious movements of customers. Olfactory- Something as simple as

placing fresh flowers by the cash registers might then be sufficient. Having a certain

scent that triggers a certain cultural norm can work to the benefit of business. For

example, having the smell of a common cleaning product can induce customers to be

tidier in a restaurant and lessen the costs and time spent on cleaning up. Tactile -.For

products that are meant to be conveyed as soft, like a cashmere sweaters for example,

marketers might want to consider trying the use of light or highly saturated colours in

their display. Taste – It is known that some food induce chemically based euphoria, one

of these being chocolate. Therefore, retailers can use this to create a more positive

experience for customers by offering them such foods as chocolate when they enter an

establishment. Overall- Segment the market and identify those that require sensory

stimulation and those that don’t, along with the variations in levels of stimulation as well

as receptiveness to the different types of stimulation. Managers need to consider and

analyse the marketing experiences that will have an impact on the various types of

consumers. Each product and service is different so marketers need to know what

appeals to their customers and what attracts their attention and will retain them as

consumers.

Conclusion:

After looking at two different types of approaches to using experiential marketing we can

conclude that experiential marketing is an innovative and extraordinary experience. As

we are in new era where everything has become more digital and on the go, it is

necessary for companies and businesses to move away from the original features and

benefits approach towards a more customer experience approach. This is seen in both

19

the approaches mentioned above and it is clear to see that I order for one to succeed in

this domain, you need to be able to adapt and improvise on the spot. One need to also

always consider the consumer and their needs as this will allow managers to know

which one is better suited for the particular product or service. This will create brand

awareness and allow consumers to identify themselves with a brand. It is the best way

in which managers can insure that their companies stay relevant and grab the

opportunities offered in a changing era.

20

References:

Ackerman, J. M., Nocera, C. C., & Bargh, J. A. (2010). Incidental haptic sensations influence social judgments and decisions. Science, 328, 1712–1715.

Alpert, J. I., & Alpert, M. I. (1990). Music influences on mood and purchase intentions. Psychology & Marketing, 7, 109– 133.

Aminoff, S. (2013). Elias Arts seminar on audio branding, Moscow, Russia.

Anon. (2001). Tube scent machine breaks down. BBC News Online, 24th April. Retrieved on 25th October, 2015, from http://news.bbc.co.uk/ 2/hi/uk news/1294795.stm “‘Anything’ & ‘Whatever’ beverages promise a surprise, every time.” (2007). Press release, 17th May

Areni, C. S., & Kim, D. (1993). The influence of background music on shopping behavior: Classical versus top-forty music in a wine store. Advances in Consumer Research, 20, 336–340.

Argo, J., Dahl, D. W., & Morales, A. C. (2006). Consumer contamination: How consumers react to products touched by others. Journal of Marketing, 70, 81–94.

AyabeKanamura,S.,Schicker,I.,Laska,M.,Hudson,R.,Distel,H.,Kobayakawa,T.,etal.(1998). Differences in perception of everyday odours: A Japanese-German cross-cultural study. Chemical Senses, 23, 31–38.

Baker, J., Parasuraman, A., Grewal, D., & Voss, G. B. (2002). The influence of multiple store environmental cues on perceived merchandise value and patronage intentions. Journal of Marketing, 66, 120–141

Berlyne, D. E. (1974). Studies in the new experimental aesthetics: Steps toward an objective psychology of aesthetic appreciation. Washington: Hemisphere Pub. Corp.

Bitner, M.J. (1990).Evaluating service encounters: The effects of physical surroundings and employee responses. Journal of Marketing, 54, 69–82

Bruner, G.C. II. (1990).Music, mood, and marketing. Journal of Marketing, 54, 94–104.

Calvert, G., Spence, C., & Stein, B. E. (Eds.). (2004). the hand book of multisensory processing. Cambridge, MA: MIT Press.

Donovan, R., Rossiter, J., Marcoolyn, G., &Nesdale, A. (1994). Store atmosphere and purchasing behaviour. Journal of Retailing, 70, 283–294.

21

Dub´e, L., Chebat, J.-C., & Morris, S. (1995). The effects of background music on consumers’ desire to affiliate in buyer-seller interactions. Psychology & Marketing, 12, 305–319.

Dunn, W. (2007). Living sensationally: Understanding your senses. London: Jessica Kingsley Publishers.

Evans, D. (2002). Emotion: The science of sentiment. Oxford: Oxford University Press.

Fetterman, J., & O’Donell, J. (2006). Just browsing the mall? That’s what you think. USA Today, 1 September. Retrieved 25th October ,2015 from http://usatoday30.usatoday.com/money/industries/retail/2006-09-01-retail-cover-usat_x.htm

Fiore, A.M. (2008).The shopping experience. InH.N.J.Schifferstein & P. Hekkert (Eds.), Product experience (pp. 629– 648). London: Elsevier.

Fost, D. (1991). Different smells for different shoppers. American Demographics, January, 10–12.

Ganda, M. (2012). Sensory marketing improves customer experience. Memphis Daily News, 127, 29th June. Retrieved January1,2002,from

http://www.memphisdailynews.com/news/2012/jun/29/sensory-marketing-improves-customer-experience/

Garcia, J., Kimeldorf, D. J., & Koelling, R. A. (1955). Conditioned aversion to saccharin resulting from exposure to gamma radiation. Science, 122, 157–158.

Garlin, F. V., & Owen, K. (2006). Setting the tone with the tune: A meta-analytic review of the effects of background music in retail settings. Journal of Business Research, 59, 755–764.

Grewal, D., Baker, J., Levy, M., & Voss, G. B. (2003). The effects of wait expectations and store atmosphere evaluations on patronage intentions in service-intensive retail stores. Journal of Retailing, 79, 259–268.

Goldman, W. P., & Seamon, J. G. (1992). Very long-term memory for odours—Retention of odour-name associations. American Journal of Psychology, 105, 549–563.

Grohmann, B., Spangenberg, E., & Sprott, D. (2007). The influence of tactile input on the evaluation of retail product offerings. Journal of Retailing, 70, 283–294.

22

Hadi, R., Block, L., & King, D. (2013). The impact of temperature on consumer decision-making: A mental thermo regulation framework. Paper presented at Said Business School Seminar, Oxford University, and October 10.

Herrington, D., & Capella, L. (1994). Practical applications of music in service settings. Journal of Services Marketing, 8, 50–56.

Hirsch, A. R. (1990). Preliminary results of olfaction Nike study, note dated November 16 distributed by the Smell and Taste Treatment and Research Foundation, Chicago, IL. Homburg, C., Imschloss, K¨uhnl, C. (2012). Of dollars and cents—Does multisensory marketing pay off? Mannheim: Institute for Marketing Oriented Management.

Hult´en, B. (2012). Sensory cues and shoppers’ touching behaviour: The case of IKEA. International Journal of Retail & Distribution Management, 40, 273–289.

Hult´en, B., Broweus, N., & van Dijk, M. (2009). Sensory marketing. Basingstoke, UK: Palgrave Macmillan.

Howes, D. (2005). Hyperesthesia or, the sensual logic of late capitalism. In D. Howes (Ed.). Empire of the senses: The sensual culture reader, (pp. 281–303). Oxford: Berg.

Juslin & J. A. Sloboda (Eds.), Handbook of music and emotion: Theory, research, applications (pp. 909–930). Oxford: Oxford University Press.

Kn¨oferle, K. M., Herrmann, A., Landwehr, J. R., & Spangenberg, E. R. (2012). It’s all in the mix: The interactive effect of music tempo and mode on in-store sales. Marketing Letters, 23, 325–337.

Kotler, P. (1974). Atmospherics as a marketing tool. Journal of Retailing, 49, 48–64.

Laird, D. A. (1935). What makes people buy (1st ed.). New York: McGraw-Hill.

Lawless, H., & Engen, T. (1977). Associations to odours: Interference, mnemonics, and verbal labelling. Journal of Experimental Psychology: Human Learning and Memory, 3, 52–59.

Lehrl,S.,Gerstmeyer,K.,Jacob,J.H.,Frieling,H.,Henkel,A. W., Meyrer, R., et al. (2007). Blue light improves cognitive performance. Journal of Neural Transmission, 114, 1435– 1463.

Levy, M., Weitz, B. A., & Grewal, D. (2014). Retailing management 9e. Burr Ridge, IL: McGraw-Hill/Irwin.

Li, W., Moallem, I., Paller, K.A., &Gottfried, J.A. (2007).Subliminal smells can guide social preferences. Psychological Science, 18, 1044–1049.

23

Lindstrom, M. (2005a). Brand sense: How to build brands through touch, taste, smell, sight and sound. London: Kogan Page.

Lindstrom, M. (2005b). Broad sensory branding. Journal of Product and Brand Management, 14, 84–87.

Linsen, M. A. (1975). Like our music today, Ms. Shopper? Progressive Grocer, October, 156.

Mandler, G. (1975). Consciousness: Respectable, useful and probably necessary. In R. Solso (Ed.), Information processing and cognition: The Loyola Symposium (pp. 229–254). Hillsdale, NJ: Erlbaum.

Martin, B.A.S. (2012).Astranger’stouch: Effects of accidental interpersonal touch on consumer evaluations and shopping time. Journal of Consumer Research, 39, 174–184.

Morrin, M. (2010). Scent marketing an overview. In A. Krishna (Ed.), Sensory marketing: Research on the sensuality of products (pp. 75–86), New York, NY: Taylor & Francis Group.

Morrin, M., & Chebat, J. C. (2005). Person-place congruency: The interactive effects of shopper style and atmospherics on consumer expenditures. Journal of Service Research, 8, 181–191.

Morrison, M., & Beverland, M. (2003). In search of the right in-store music. Business Horizons, 46, 77–82.

Neff, J. (2000). Product scents hide absence of true innovation. Advertising Age, February 21, 22. Retrieved 25th October 2015, from http://adage.com/article/news/productscents-hide-absence-true-innovation/59353/.

North, A. C., Hargreaves, D. J., & McKendrick, J. (1997). Instore music affects product choice. Nature, 390, 132.

North, A. C., Hargreaves, D. J., & McKendrick, J. (1999). The influence of in-store music on wine selections. Journal of Applied Psychology, 84, 271–276.

North, A., & Hargreaves, D. (2008). The social and applied psychology of music. Oxford: Oxford University Press. North, A., & Hargreaves, D. (2010). Music and marketing. In P. N.

North, A. C., Shilcock, A., & Hargreaves, D. J. (2003). The effect of musical style on restaurant customers’ spending. Environment and Behavior, 35, 712– 718.

24

Peck, J., & Childers, T. L. (2006). If I touch it I have to have it: Individual and environmental influences on impulse purchasing. Journal of Business Research, 59, 765–769.

Piqueras-Fiszman, B., &Spence, C. (2012a).The weight of the bottle as a possible extrinsic cue with which to estimate the price (and quality) of the wine? Observed correlations. Food Quality & Preference, 25, 41–45.

Puccinelli, N. M., Goodstein, R., Grewal, D., Price, R., Raghubir, P., & Stewart, D. (2009). Customer experience management in retailing: Understanding the buying process. Journal of Retailing, 85, 15–30.

Smith, P. C., & Curnow, R. (1966). “Arousal hypothesis” and the effects of music on purchasing behaviour. Journal of Applied Psychology, 50, 255–256.

Soars, B. (2009). Driving sales through shoppers’ sense of sound, sight, smell and touch. International Journal of Retail & Distribution Management, 37, 286–298

Spangenberg, E.R., Crowley, A.E., &Henderson, P.W. (1996). Improving the store environment: Do olfactory cues affect evaluations and behaviours? Journal of Marketing, 60, 67– 80.

Spangenberg, E. R., Sprott, D. E., Grohmann, B., & Tracy, D. L. (2006). Gender-congruent ambient scent influences on approach and avoidance behaviours in a retail store .Journal of Business Research, 59, 1281–1287.

Spence, C. (2011a). Cross modal correspondences: A tutorial review. Attention Perception & Psychophysics, 73, 971–995.

Spence, C. (2012a).Managing sensory expectations concerning products and brands: Capitalizing on the potential of sound and shape symbolism. Journal of Consumer Psychology, 22, 37–54.

Spence, C., & Gallace, A. (2011). Multisensory design: Reaching out to touch the consumer. Psychology & Marketing, 28, 267–308

Spence, C., & Piqueras-Fiszman, B. (2014). The perfect meal: The multisensory science of food and dining. Oxford: Wiley Blackwell.

Trivedi, B. (2006). Recruiting smell for the hard sell. New Scientist, 2582, 36–39.

Trivedi, B. (2006). Recruiting smell for the hard sell. New Scientist, 2582, 36–39.

25

Timmerman, J. E. (1981). The effect of temperature, music and density on perception of crowding and shopping behaviour of consumers in a retail environment. Dissertation Abstracts International, 42, 1293.

Underhill, P. (1999). Why we buy: The science of shopping. New York: Simon & Schuster.

Wessler, R. (2011). What does your brad taste like? Retrieved January 7, 2014, from http://www.creditunions.com/what-does-your-brand-taste-like/

Wilcox, K., Roggeveen, A. L., & Grewal, D. (2011). Shall I tell you now or later? Assimilation and contrast in the evaluation of experiential products. Journal of Consumer Research, 38, 763–773.

Ward, P., Davies, B. J., & Kooijman, D. (2003). Ambient smell and the retail environment: Relating olfaction research to consumer behaviour. Journal of Business and Management, 9, 289–302.

Yeshurun, Y., & Sobel, N. (2010). An odour is not worth a thousand words: From multidimensional odours to unidimensional odour objects. Annual Review of Psychology, 61, 219–241.

Yoon, C., Gonzalez, R., Bechara, A., Berns, G. S., Dagher, A., Dube, L., et al. (2012). Decision neuroscience and consumer decision making. Marketing Letters, 23, 473–485.

Abbott, L. (1955). Quality and competition. New York: Columbia University Press.

Blanchard, R.F. and Galloway, R.L. (1994), “Quality in retail banking”, International Journal of Service Industry Management, Vol. 5 No. 4, pp. 5-23.

Brady, M. K., & Robertson, C. J. (2001). Searching for a consensus on the antecedent role of service quality and satisfaction: An exploratory cross-national study. Journal of Business Research, 51(1), 53-60.

Brakus J J, Schmitt B H and Zarantonello L (2009), “Brand Experience: What Is It? How Is It Measured? Does It Affect Loyalty?”, Journal of Marketing, Vol. 73, May, pp. 52- 68.

Heskett, J.L., Jones, T.O., Loveman, G.W., Sasser, W.E. Jr and Schlesinger, L.A. (1994), “Putting the service profit chain to work”, Harvard Business Review, March-April, pp. 105-11.

Lebergott, S. (1993). Pursuing happiness: American consumers in the twentieth century. Princeton, NJ: Princeton University Press.

26

Pine B J and Gilmore J H (1998), “Welcome to the Experience Economy”, Harvard Business Review, July/August, pp. 97-105.

Reicheld, F.F. and Sasser, W.E. Jr (1990), “Zero defections comes to services”, Harvard Business Review, September-October, pp. 105-11.

Schmitt B H (1999), “Experiential Marketing”, Journal of Marketing Management, Vol. 15, Nos. 1-3, pp. 53-57.

Schmitt, B. (1999a). Experiential marketing. Journal of Marketing Management, 15(1-3), 53-67.

Schmitt, B. (1999b). Experiential marketing: How to get customers to sense, feel, think, act, and relate to your company and brands. New York: Free Press.

Tsaur S H, Chiu Y T and Wang C H (2006), “The Visitors Behavioral Consequences of Experiential Marketing: An Empirical Study on Taipei Zoo”, Journal of Travel and Tourism Marketing, Vol. 21, No.1

Yang, C. (2009). The International Journal of Organizational Innovation Vol. 2, pp 245: Study of repurchase intentions in experiential marketing and empirical study of franchise restaurant.

Blackwell, R. D., Miniard, P. W., & Engel, J. F. (2001). Consumer Behavior (9th ed.). Orlando, FL: Harcourt College Publishers.

Zeithaml, V. A., Berry, L. L., & Parasuraman, A. (1996). The behavioral consequences of service quality. Journal of Marketing, 60(2), 31-46.

Steven S. Cueller, Roberts C. Eyler & Rich Fanti (2015) Experiential Marketing and Long-Term Sales.

Saeed Shobeiri, Ebrahim Mazaheri & Michel Laroche (2014) Improving custoers website involvement through experiential marketing

Schmitt. B, Vol 10, #2; spring 1999 Experiential Marketing: A new framework for design and communications

27

28