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Equity drivers and the customer experience

Abstract

Customer experience has become a top priority for business managers and marketing scholars. However, research on this topic remains relatively scarce, particularly with regard to the drivers of the customer experience. To bridge this important gap, we propose a unified framework to understand the customer experience that integrates the customer’s perceptions of value, brand and the relationship, i.e. the three equity drivers, and test it empirically in a service setting. This study intends to demonstrate that the three equity drivers are central to explaining the way individuals perceive their experiences with the firm and its products and services.

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Equity drivers and the customer experience

Author: Gao, Lily; Melero, Iguácel; Sesé, Javier
Publisher: ESIC
Year: 2017
Source: https://idus.us.es/bitstreams/8e345e22-2b63-46ef-a871-58b9f624797b/download
EQUITY DRIVERS AND THE CUSTOMER
EXPERIENCE
Gao, Lily; Mele o, Iguácel; Sesé, Ja ie
Uni e sidad de Za agoza
ABSTRACT
Cus ome expe ience has become a op p io i y o business manage s and ma ke ing
schola s. Howe e , esea ch on his opic emains ela i ely sca ce, pa icula ly wi h
ega d o he d i e s o he cus ome expe ience. To b idge his impo an gap, we
p opose a uni ied amewo k o unde s and he cus ome expe ience ha in eg a es he
cus ome ’s pe cep ions o alue, b and and he ela ionship, i.e. he h ee equi y d i e s,
and es i empi ically in a se ice se ing. This s udy in ends o demons a e ha he
h ee equi y d i e s a e cen al o explaining he way indi iduals pe cei e hei
expe iences wi h he i m and i s p oduc s and se ices.
Keywo ds:
Cus ome expe ience, equi y d i e s, inancial se ices
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EN CURSO Dis
1. In oduc ion
Gaining compe i i e ad an age in oday’s highly compe i i e and echnologically ad anced
en i onmen equi es ha i ms adop a cus ome -cen e ed ans o ma ion. I s a s wi h
acknowledging he impo ance o he alue being deli e ed o cus ome s (Kuma and Reina z 2016),
and he need o p o ide supe io shopping expe iences (Lemon and Ve hoe 2016). As a esul ,
unde s anding and managing he cus ome expe ience, concep ualized as he cus ome in e nal and
subjec i e esponse o a se o in e ac ions be ween he cus ome and he i m (and i s p oduc s and
se ices) (Gen ille, Spille , and Noci 2007), has become a op p io i y o business manage s and
ma ke ing schola s (MSI 2016). Acco ding o a ecen esea ch by Accen u e (2015), imp o ing he
cus ome expe ience was anked as numbe one by he majo i y o esponden s when execu i es we e
asked abou hei op p io i ies o he nex 12 mon hs. Mul iple i ms, such as KPMG, Amazon and
Google, now ha e chie cus ome expe ience manage s esponsible o c ea ing and managing
cus ome expe ience o hei cus ome s (Lemon and Ve hoe 2016). In a esea ch ealized by
McKinsey abou cus ome jou neys, i was ound ha o ganiza ions able o skill ully manage he
en i e expe ience eap eno mous ewa ds: enhanced cus ome sa is ac ion, educed chu n, inc eased
e enue, and g ea e employee sa is ac ion (Alex Rawson, Ewan Duncan and Colo Jones 2013).
Howe e , despi e he impo ance o deli e ing sa is ac o y and pe sonalized expe iences o build
success ul ela ionships wi h cus ome s, esea ch on his opic emains ela i ely sca ce, pa icula ly
wi h ega d o he d i e s o he cus ome expe ience. While a numbe o concep ual pape s ha e made
hei way and ha e p o ided impo an insigh s in o he na u e, d i e s, and consequences o he
cus ome expe ience (e.g. Lemke, Cla k, and Wilson 2011; Lemon and Ve hoe 2016; Mele o, Sese,
and Ve hoe 2016; Ve hoe e al. 2009), empi ical s udies ha e no ollowed sui . The ew exis ing
s udies end o in es iga e speci ic aspec s, such as p oduc s ea u es (Gen ille, Spille , and Noci
2007), and websi e design (No ak, Ho man, and Yung 2000) as d i e s o he cus ome expe ience.
Simila ly, G ewal, Le y and Kuma (2009) e alua e he ole o mac o ac o s in he e ail en i onmen
(e.g., p omo ion, p ice, me chandise, supply chain and loca ion) on shaping cus ome expe iences and
beha io s. Howe e , he cus ome expe ience is a mul idimensional and holis ic concep (Ve hoe e
al. 2009) and, hus, he a ious ele an ace s ha shape cus ome expe iences should be
simul aneously conside ed o unde s and hei o e all impac as well as hei ela i e impo ance.
Gi en his lack o esea ch, his s udy in ends o ill an impo an gap in he li e a u e by in es iga ing
he cus ome expe ience and i s an eceden s. Speci ically, ou esea ch o e s a uni ied amewo k o
unde s and he cus ome expe ience ha in eg a es he cus ome ’s pe cep ions o alue, b and and he
ela ionship, i.e. he h ee equi y d i e s (Rus , Lemon, and Zei haml 2004). We a gue ha he way in
which cus ome s e alua e hei expe iences wi h companies a e a unc ion o (1) he assessmen hey
make abou he u ili y (i.e. bene i s s. sac i ices) o he good/se ice (i.e. alue equi y), (2) he
subjec i e and in angible assessmen o he b and (b and equi y), and (3) he cus ome pe cep ions
abou he ela ionship wi h he i m (i.e. ela ionship equi y). We es empi ically he amewo k in a
se ice se ing.
The eminde o his wo k is o ganized as ollows. In he nex sec ion, we show he o igin and
e olu ion o cus ome expe ience. In he ollowing sec ion, we p esen ou concep ual amewo k
abou he d i e s o he cus ome expe ience, and de elop he esea ch hypo heses. We will con inue
wi h he desc ip ion abou da a, a iables and me hodology. Finally, we p esen he p elimina y
indings and discuss he implica ions o ou esea ch o heo y and p ac ice. Fu he esea ch lines a e
also de ailed in he las sec ion o encou age academics o in es iga e his opic in he u u e.
2. Backg ound o cus ome expe ience
The cus ome expe ience is no a new concep in ma ke ing li e a u e. Hi schman and Holb ook
(1982) heo ized al eady ha consump ion has expe ien ial aspec s. In he 1980s, expe ien ial heo is s
(e.g., Hi schman and Holb ook 1982; Holb ook and Hi schman1982; Thompson, Locande , and Pollio
1989) encou aged a b oade iew o human beha io , especially ecognizing he impo ance o he
emo ional aspec s o decision making and expe ience, since un il hen ma ke ing esea che s we e
ocusing mos ly on he cogni i e aspec s. Despi e hese ini ial spa ks, he concep o cus ome
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expe ience come mo e ele an ly o he 1990s wi h Pine and Gilmo e´s book on he Expe ience
Economy (1999). These au ho s p esen he “expe ience” as a new economic o e ing (Gen ile, Spille
and Noci,2007). Pine and Gilmo e (1998) concep ualized o he i s ime he idea o “expe ience”
emphasizing he impo an ole o expe ience o achie e consume s´ engagemen wi h he company.
Following his pa h, he e a e mul iple de ini ions o cus ome expe ience in he li e a u e (see o
example Lemon and Ve hoe 2016), since i has been de ined om di e en pe spec i es, o ins ance
co-c ea ion, b and and echnology, e c. In gene al, schola s and p ac i ione s ha e come o ag ee ha
o al cus ome expe ience is mul idimensional, holis ic and dynamic. Thus, heo e ically i is a pe ec
concep o guide manage ial implica ions and ma ke ing heo y de elopmen due o i s main
cha ac e is ics. Howe e , hese cha ac e is ics men ioned abo e also become “bu den” in e ms o
measu emen . Klaus and Maklan (2011,2012) highligh ha he main p oblem o concep ualizing
cus ome expe ience is ha i is de ined so b oadly, so “holis ically” ha i is li le use o manage s.
Hence, he me hodological challenges o measu ing cus ome se ice expe iences a e closely linked
wi h he complexi y o his concep (Jü ne , Scha ne , Windle and Maklan, 2013).
Ideally, we would like o measu e and assess cus ome s’ o e all expe ience wi h he i m, a each
s age in he cus ome jou ney and o all ouch poin s. Howe e , he eali y is ha cus ome expe ience
is gene ally measu ed by ocusing on speci ic elemen s ins ead o being ea ed as an in eg a ed uni
(Jü ne , Scha ne , Windle and Maklan, 2013; Lemon and Ve hoe 2016). Palme (2010) explains he
main eason o his phenomenon. He s a es ha “p obably he g ea es p oblem in de eloping and
ope a ionally adap able measu e o cus ome expe ience is he complexi y o con ex speci ic
a iables” (Palme 2010 pp.202-203), illus a ing he gap be ween he unde s anding o he concep ual
domain and he me hodological knowledge o cus ome se ice expe ience.
Cus ome expe ience quali y based on alue-in-use in oduced by Lemke, Cla k and Wilson (2011)
shed new ligh o his cen al issue owa d cus ome expe ience measu emen , since quali y is
concei ed as a global assessmen , de ined by Zei haml (1988) as a pe cei ed judgemen abou an
en i y’s o e all excellence o supe io i y. Hence, in his wo k, we ollow Lemke, Cla k, and Wilson
(2011) and ocus on he concep o cus ome expe ience quali y. Acco ding o Lemke, Cla k and
Wilson (2011) cus ome expe ience is he cus ome ’s subjec i e esponse o he holis ic di ec
and indi ec encoun e wi h he i m, and cus ome expe ience quali y is concep ualized as i s
pe cei ed excellence o supe io i y o he cus ome expe ience.
3. Concep ual amewo k and de elopmen o hypo hesis
We p opose a uni ied amewo k o unde s and he cus ome expe ience ha in eg a es he cus ome ’s
pe cep ions o alue, b and and he ela ionship, i.e. he h ee equi y d i e s (Rus , Lemon, and
Zei haml 2004). We a gue ha he way in which cus ome s e alua e hei expe iences wi h companies
a e a ec ed by he assessmen hey make abou he u ili y (i.e. bene i s s. sac i ices) o he
good/se ice (i.e. alue equi y), he subjec i e and in angible assessmen o he b and (b and equi y),
and he cus ome pe cep ions abou he ela ionship wi h he i m (i.e. ela ionship equi y). Toge he ,
hese h ee equi y d i e s cap u e all ele an aspec s o he in e ac ions ha ul ima ely de e mine he
way indi iduals pe cei e hei exchange wi h he company. Nex , we concep ualize he h ee equi y
d i e s and p esen he esea ch hypo heses. FIGURE 1
Cus ome expe ience concep ual amewo k
Value equi y
B and equi y
Rela ionship
equi y
Cus ome
expe ience quali y
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3.1. Value equi y
Value equi y cap u es cus ome ’s objec i e assessmen o he u ili y o goods o se ices based on
pe cep ions o “wha is gi en up” o “wha is ecei ed.” Value equi y is he keys one o he
cus ome ’s ela ionship wi h he i m (Lemon, Rus and Zei hmal, 2001). Expec a ion- discon i ma ion
heo y (e.g. Hombu g, e al, 2006) a gues ha when alue equi y is pe cei ed as high, cus ome s a e
mo e sa is ied wi h he i m’s o e ings. Mo eo e , when a cus ome ecei es excep ional alue in his
o he consump ion expe iences ia he di ec sales channel, he o she will seek o main ain he
ela ionship wi h he di ec selle leading o high ela ional commi men (Musa, Pallis e and Robson,
2005). Finally, equi y heo y main ains ha pe cei ed equi y p oduces posi i e a ec i e s a es ha
lead o posi i e a i udes, such as us and loyal y (Adams, 1965; Homans, 1965, Wals e,Wals e and
Be scheid 1978). Based on hese a gumen s, when cus ome s pe cei e high alue equi y, cus ome
expe ience quali y is expec ed o be highe . Mo e o mally,
H1: Pe cei ed alue equi y has a posi i e impac on cus ome expe ience quali y.
3.2. B and equi y
Schmi (1999) emphasized he impo ance o b and equi y on cus ome expe ience. Za an onello and
Schmi (2013) sugges ha b and equi y has been widely sea ched o e he yea s and wo main
pe spec i es ha e eme ged. One pe spec i e, which is cen e ed on i m-based b and equi y, deals wi h
he inancial alue o b ands. The o he pe spec i e ocuses on consume based b and equi y and e e s
o consume s´ esponses o b ands. We adop he la e pe spec i e in his wo k. B and equi y e e s o
he cus ome s’ subjec i e and in angible assessmen o he b and image (Lemon e al., 2001). And he
classical concep ualiza ion de eloped by Aake (1991) de e mines b and equi y as a se o b and asse s
and liabili ies linked o a b and, i s name and symbol ha add o o sub ac om he alue p o ided
by a p oduc o se ice o ha i m´s cus ome s´ and/o o ha i m. Based on his concep ualiza ion,
he essen ial dimensions o b and equi y a e b and awa eness, b and associa ion and b and loyal y.
B and awa eness indica es cus ome ’s capabili y o ecall o ecognize a b and (Aake , 1991). B and
associa ions po ay image dimensions ha a e posi i e, a o able and unique o a b and (Aake , 1996;
Kelle 2003). B and loyal y indica es he cus ome ’ s a achmen o a pa icula b and (Aake ,1991).
B ands ha a e pe cei ed o be s ong usually ob ain highe le els o sa is ac ion and us (Baldau ,
Ca ens and Binde 2003).Aake (1991) desc ibes b and equi y in e ms o con idence in he
pu chasing decision. Mo eo e , cha ac e ized in e ms o he memo y o an indi idual consume ,
cus ome -based b and equi y is ega ded as a consequence o knowledge ha is s o ed abou he b and
(Kelle 1993, 1998). The le el a which knowledge owa d b and ge s s o ed in memo y a ec s he
deg ee o in luence on new expe ience ela ed o ha b and (Ke in, Jain and Howa d, 1992). Thus,
hese a gumen s sugges ha highe pe cei ed b and equi y will esul in highe cus ome expe ience
quali y.
H2: Pe cei ed b and equi y has a posi i e impac on cus ome expe ience quali y
3.3. Rela ionship equi y
Gi en he signi ican shi s in he new economy- om goods o se ices, om se ices o expe iences
(Pine and Gilmo e 1999), i is no su icien o companies o o e p oduc s wi h i s s ong b and and
keep cus ome s by mee ing hei expec a ions consis en ly. Wha ’s needed is a way o glue he
cus ome s o he i m, enhancing he s ickiness o he ela ionship. Rela ionship equi y ep esen s he
glue. Speci ically, Rus , Zei haml, and Lemon (2000) de ine ela ionship equi y as he endency o he
cus ome o s ick wi h he b and, abo e and beyond he cus ome ´s objec i e and subjec i e
assessmen o he b and o he company. I a pe cei ed ela ionship is s ong, cus ome s belie e ha
hey a e well ea ed and handled wi h pa icula ca e. In addi ion, cus ome s eel amilia wi h he
b and, he s o e, o he employees o he s o e. As consequence, hey will us he quali y o he
p oduc s o accu acy o he se ice (Vogel, E anschi zy and Ramaseshan, 2008). A numbe o s udies
by Gwinne , G emele and Bi e (1998), Reyno lds and Bea y (1999), Smi h (1998), and Hennig-
Thu aum Gwinne and G emele (2002) conclude ha he e is s and ela ionship among he
ela ionship cons uc , us , in ol emen and sa is ac ion. The e o e, high pe cei ed ela ionship
equi y will lead o a highe cus ome expe ience quali y.
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H3: pe cei ed ela ionship equi y has a posi i e e ec on cus ome expe ience quali y
4. Me hodology
To es empi ically he p oposed concep ual amewo k, we ca ied ou a su ey among cus ome s
om a collabo a ing bank ha sells inancial se ices in di e en ca ego ies (e.g. ce i ica es o
deposi , sa ings accoun s, mo gages) o indi idual cus ome s (B2C). A inal e ec i e sample o
2,000 ques ionnai es was ob ained. To measu e he h ee equi y d i e s we ollowed Rus e al. (2004)
and Vogel (2008), while he cus ome expe ience quali y is measu ed by bo owing i ems om a la ge
lis o cons uc s de eloped by Lemke e al.(2011) o cus ome expe ience quali y and om
Pa asu aman, Zei haml and Be y e al. (1985, 1986) s udy o se ice quali y. As o he nex s ep, and
a e aking ca ying ou ini ial analyses o demons a e he eliabili y and alidi y o he s udied
cons uc s, we will use linea eg ession analysis o e alua e he ela i e impac o he h ee equi y
d i e s on he cus ome expe ience.
5. Resul s and con ibu ions
A e applying hese echniques, we expec o ind a signi ican impac o he h ee equi y d i e s on
he cus ome expe ience. Impo an ly, we will also explo e hei ela i e impac , o iden i y which o
he h ee d i e s con ibu e he mos o shaping he cus ome expe ience. Wi h his empi ical
in es iga ion, his s udy will y o con ibu e o cu en knowledge in h ee main ways. Fi s , by
p oposing an in eg a i e amewo k ha conside s simul aneously cus ome pe cep ions abou alue,
he b and, and he ela ionship in shaping he cus ome expe ience we a e ad ancing ou cu en
unde s anding o how expe iences o m and de elop. Second, wi h an empi ical es o ou p oposed
amewo k in a se ice se ing (banking), we a e expec ed o o e insigh s in o how o manage he
cus ome expe ience mo e e ec i ely o build success ul and long-las ing p o i able ela ionships. Fo
example, his s udy migh sugges ha some equi y d i e s (e.g. ela ionship equi y) a e be e
p edic o s o he expe ience and, hus, hey should be p omo ed when i ms p oac i ely y o manage
he expe ience.
Fo u u e esea ch, i is ecommended o analyze hese aspec s join ly wi h he social
en i onmen , as he in luence exe ed by o he s on each indi idual a ec s he s eng h wi h which
equi y d i e s de e mine he na u e o he cus ome expe ience, ha is social e ec s, gi en ha he
cus ome expe ience is de e mined no only by elemen s unde he con ol o he company, bu also by
o he ac o s ha all ou side he company’s con ol (Ve hoe e al. 2009; Lin and Liang 2011).
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Wals e , E., Wals e , G. W., & Be scheid, E. (1978). Equi y: Theo y and esea ch.
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