Online Customer Experience : What is the Experience and how is it Difference for Frequent and Infrequent Purchasers, Age Cohorts and Gender Groups?

What do we know? • Customer Experience is increasingly becoming the new standard for differentiation in both offline and online retailing, and offers a sustainable competitive advantage. o The economic value of a company’s offering has been observed to increase when the customer has a fulfilling shopping experience (Pine & Gilmore, 1998) o Crafting engaging and customer experience is a known method of generating loyalty, advocacy and word of mouth (Tynan & McKechnie, 2009). o A good experience can entice consumers to shop for longer and spend more (Kim, 2001). • The customer’s experience is made up of diverse elements occurring before, during and after the purchase itself. (Discussed further on page 5). It is cumulative over time and can be influenced by touch points across multiple channels. What remains unclear? • How do Coles customers respond to the elements of online customer experience? • How does the online customer experience differ for frequent and infrequent purchasers? • Do differences between genders and age cohorts for online customer experience exist?

Re-examining online customer experience to include purchase frequency and perceived risk

This research examines the important emerging area of online customer experience (OCE) using data collected from an online survey of frequent and infrequent online shoppers. The study examines a model of antecedents for cognitive and affective experiential states and their influence on outcomes, such as online shopping satisfaction and repurchase intentions. The model also examines the relationships between perceived risk, trust, satisfaction and repurchase intentions. Theoretically, the study provides a broader understanding of OCE, through insights into two shopper segments identified as being important in e-retailing. For managers, the study highlights areas of OCE and their implications for ongoing management of the online channel.

Can location-based mobile marketing enhance the customer experience and increase customer satisfaction and loyalty?

This study intends to explore the impact of customer experience on customer satisfaction and loyalty by trying to understand how location-based mobile marketing might enhance the customer experience. Primary data was collected from 201 smartphone users in 24 countries. Results have indicated that targeted location-based marketing positively influences customers’ experiences. Besides, the analysis has also shown a favorable impact on customers’ satisfaction and self-perceived loyalty. This suggests that location-based mobile marketing has the potential to positively add value to a customer’s experience and should therefore be considered an important tool in marketing communications.

Customer experience quality: an exploration in business and consumer contexts using repertory grid technique

This study proposes a conceptual model for customer experience quality and its impact on customer relationship outcomes. Customer experience is conceptualized as the customer’s subjective response to the holistic direct and indirect encounter with the firm, and customer experience quality as its perceived excellence or superiority. Using the repertory grid technique in 40 interviews in B2B and B2C contexts, the authors find that customer experience quality is judged with respect to its contribution to value-in-use, and hence propose that value-in-use mediates between experience quality and relationship outcomes. Experience quality includes evaluations not just of the firm’s products and services but also of peer-to-peer and complementary supplier encounters. In assessing experience quality in B2B contexts, customers place a greater emphasis on firm practices that focus on understanding and delivering value-in-use than is generally the case in B2C contexts. Implications for practitioners’ customer insight processes and future research directions are suggested.

Online customer experience in e-retailing: an empirical model of antecedents and outcomes

The theoretical understanding of online shopping behavior has received much attention. Less focus has been given to the formation of the customer experience (CE) that results from online shopper interactions with e-retailers. This study develops and empirically tests a model of the relationship between antecedents and outcomes of online customer experience (OCE) within Internet shopping websites using an international sample. The study identifies and provides operational measures of these variables plus the cognitive and affective components of OCE. The paper makes contributions towards new knowledge and understanding of how e-

Simulating customer experience and word-of-mouth in retail: a case study

Agents offer a new and exciting way of understanding the world of work. In this paper we describe the development of agent-based simulation models, designed to help to understand the relationship between people management practices and retail performance. We report on the current development of our simulation models which includes new features concerning the evolution of customers over time. To test the features we have conducted a series of experiments dealing with customer pool sizes, standard and noise reduction modes, and the spread of customers’ word of mouth. To validate and evaluate our model, we introduce new performance measure specific to retail operations. We show that by varying different parameters in our model we can simulate a range of customer experiences leading to significant differences in performance measures. Ultimately, we are interested in better understanding the impact of changes in staff behavior due to changes in store management practices. Our multi-disciplinary research team draws upon expertise from work psychologists and computer scientists. Despite the fact we are working within a relatively novel and complex domain, it is clear that intelligent agents offer potential for fostering sustainable organizational capabilities in the future.

Understanding the town centre customer experience (TCCE)

This research enhances the understanding of consumer behaviour and customer experience in the context of town centres. First, it defines town centre customer experience (TCCE) as a multifaceted journey that combines interactions with a diverse range of public and private organisations, including retailers and social and community elements; this results in a unique experience co-created with the consumer across a series of functional and experiential touchpoints. Second, combining qualitative and quantitative insights, this research reveals a series of specific functional and experiential TCCE touchpoints, which underpin the consumer internal response (motivation to visit) and outward behaviour (desire to stay and revisit intentions) in the town centre. In addition to enhancing town centre and customer experience knowledge, these findings offer important new insights to those managing town centres and seeking to retain customer loyalty in the high street. Above all, these findings can help identify the touchpoints that need to be reinforced and/or improved to differentiate a town from its competing centres and to create tailored marketing strategies. Taken together, such initiatives have the potential to positively impact the revitalisation of the high street and the town centre economy.

A digital airport experience : design-led innovation in support of airport strategy

The digital era is proving to be one of disruption, where new technologies matched with innovative business models can be harnessed to attack even the most established of companies. For businesses with the relative certainty of captive customer bases, such as airports, the ability to digitally diversify offers the opportunity to venture into new modes of operation. For an airport, this opportunity can also be leveraged to sustain superior customer support regardless of a customer’s location in the world. This research paper presents a case study of the development of an Australian Airport Corporation’s mobile application as part of a greater digital strategy initiative using a design-led approach to innovate. An action research method provides the platform for an intensive embedded practice and study of design-led innovation within the major Australian Airport Corporation. The findings reveal design-led innovation to be a crucial in-house idea generation and concept development capability enabling the bridging of distinct corporate domains associated with commercialisation, operations and customer experience. A Digital Innovation Checklist is presented as an output of this research which structures an organizational approach toward digital channel innovation. The practitioner’s checklist is designed to aid in the future development of digital channels within the broader spectrum of strategy by addressing business assumptions.

Art museums and the global tourist: Experience centres in experience-scapes

In the experience economy, the role of art museums has evolved so as to cater to global cultural tourists. These institutions were traditionally dedicated to didactic functions, and served cognoscenti with elite cultural tastes that were aligned with the avant-garde’s autonomous stance towards mass culture. In a post-avant-garde era however museums have focused on appealing to a broad clientele that often has little or no knowledge of historical or contemporary art. Many of these tourists want art to provide entertaining and novel experiences, rather than receiving pedagogical ‘training’. In response, art museums are turning into ‘experience venues’ and are being informed by ideas associated with new museology, as well as business approaches like Customer Experience Management. This has led to the provision of populist entertainment modes, such as blockbuster exhibitions, participatory art events, jazz nights, and wine tasting, and reveals that such museums recognize that today’s cultural tourist is part of an increasingly diverse and populous demographic, which shares many languages and value systems. As art museums have shifted attention to global tourists, they have come to play a greater role in gentrification projects and cultural precincts. The art museum now seems ideally suited to tourist-centric environments that offer a variety of immersive sensory experiences and combine museums (often designed by star-architects), international hotels, restaurants, high-end shopping zones, and other leisure forums. These include sites such as Port Maravilha urban waterfront development in Rio de Janiero, the Museum of Old and New Art in Hobart, and the Chateau La Coste winery and hotel complex in Provence. It can be argued that in a global experience economy, art museums have become experience centres in experience-scapes. This paper will examine the nature of the tourist experience in relation to the new art museum, and the latter’s increasingly important role in attracting tourists to urban and regional cultural precincts.

Investigating how customer insights inform strategy leading to brand differentiation in the retail sector

Using qualitative research with case studies of firms in the Australian retail sector, this thesis explores the link between brand differentiation, customer insights, and strategy development to deliver a unique customer experience. The research focus is how brand expression is driven by customer insights. Findings indicate that customer experience is made tangible by the strategic design and alignment of the brand's expression and is crucial to retail success. A significant practical outcome is the development of the Brand Differentiated Model. Created as a tool to potentially assist retailers develop brands from the 'inside out' and confront future disruptions.

Design and a deep customer insight approach to innovation

This paper proposes and explores the Deep Customer Insight Innovation Framework in order to develop an understanding as to how design can be integrated within existing innovation processes. The Deep Customer Insight Innovation Framework synthesises the work of Beckman and Barry (2007) as a theoretical foundation, with the framework explored within a case study of Australian Airport Corporation seeking to drive airport innovations in operations and retail performance. The integration of a deep customer insight approach develops customer-centric and highly integrated solutions as a function of concentrated problem exploration and design-led idea generation. Businesses’ facing complex innovation challenges or seeking to making sense of future opportunities will be able to integrate design into existing innovation processes, anchoring the new approach between existing market research and business development activities. This paper contributes a framework and novel understanding as to how design methods are integrated into existing innovation processes for operationalization within industry.