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Pankaj Deshwal , (2016),"Customer experience quality and demographic variables (age, gender,
education level, and family income) in retail stores", International Journal of Retail & Distribution
Management, Vol. 44 Iss 9 pp. 940 - 955
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IJRDM
44,9
Customer experience quality and
demographic variables
(age, gender, education level, and
940 family income) in retail stores
Downloaded by NETAJI SUBHASH INSTITUTE OF TECHNOLOGY At 22:44 26 September 2016 (PT)
Abstract
Purpose – The purpose of this paper is to focus on ascertaining whether and how groups based on
demographic variables (age, gender, education level, and family income) differs for dimensions of
customer experience quality in the Indian retail store context.
Design/methodology/approach – A 23 items instrument was distributed to retail store customers.
Demographic variables were age, gender, education level, and family income. Finally, the analysis was
performed on 346 responses. ANOVA test was performed to find out the significant difference between
the groups based on demographic variables with respect to components of customer experience quality
in the Indian retail store context.
Findings – Analysis revealed that some categories of demographic variables differ with respect to
dimensions of customer experience quality in the Indian retail store context.
Originality/value – Authors believe that this is the first study, which applies EXQ model in India
retail context.
Keywords EXQ, Customer experience, Satisfaction, Service experience, Analysis, Retail store
Paper type Research paper
1. Introduction
Schmitt (1999) introduced the idea that consumers can be viewed as both emotional and
rational decision makers. This idea led to a number of studies being conducted in order
to determine the experience of customers in different industries. In the context of the
retail industry, modern retailing has become synonymous with providing customers
more control, choice, convenience, and with a memorable experience (Ubeja and Bedia,
2012). With the rise in emphasis on customer experience, retailers have realised that
they must differentiate their offerings/services. One way by which they can achieve
this is by providing the consumers with positive experiences (Gilmore and Pine, 2002).
However, it is still unknown whether or how customer demographic variables (age,
gender, education level, and family income) differently evaluate the dimensions of
customer experience quality.
India’s retail sector amounts to the fifth largest in the world (Kaul et al., 2010).
This sector has witnessed a rapid growth in the past few years. Retail industry makes
about 22 per cent of India’s GDP and is considered as one of the major pillars of the
Indian economy (Sikka and Singh, 2014). 9.4 per cent of the Indian population is
employed in the retail and logistic sector (Sikka and Singh, 2014). It is estimated
International Journal of Retail &
Distribution Management that by 2020 the Indian retail industry is going to increase to around $400 billion
Vol. 44 No. 9, 2016
pp. 940-955
(Sikka and Singh, 2014).
© Emerald Group Publishing Limited
0959-0552
The industry is expected to grow at a rate of about 25 per cent annually. The whole
DOI 10.1108/IJRDM-03-2016-0031 concept of shopping has witnessed a drastic change not only in terms of consumer’s
buying behaviour but also in terms of the format of buying (Madan and Kumari, 2012). Customer
The entry of the foreign direct investment is one of the recent change in the retail experience
sector. “The Indian retail industry has experienced high growth over the last decade
with a noticeable shift towards organised retailing formats. The industry is moving
quality
towards a modern concept of retailing. The size of India’s retail market was estimated
at US$ 435 billion in 2010. India’s retail market is expected to grow at 7% over the next
10 years, reaching a size of US$ 850 billion by 2020. Organized retail is expected to 941
grow at 25% and reach a size of US$ 200 billion by 2020” (FICCI, 2016). Brick and
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mortar retailers have some distinctive advantages over online retailers. Some
advantages are:
The “touch and feel” factor. There are customers who would want to touch, feel, or
experience the product before buying it. Pleasant interiors, friendly customer service staff,
in-store web-based facilities (product browsing kiosk, automated checkouts, etc.), free home
delivery and attractive offers & discounts are some value added services that can give
customers a feel-good factor about store visits. Exclusivity is another area, which physical
retailers leverage. There is a certain segment of customers, who prefer premium, niche or
exclusive products and services. They prefer to buy a product and a brand or experience a
service only from a store, they have a trust on (Kabra, 2015).
Therefore, the need arises to analyse the customers’ experiences in the context of brick
and mortar retail stores. The customer experience quality (EXQ) scale has been
considered for this study (Klaus and Maklan, 2012). Klaus and Maklan developed this
scale and applied it to the banking sector after which tested it across four sectors, i.e. fuel,
service station, mortgages, and luxury goods (Klaus and Maklan, 2011, 2012). These
studies were conducted in the UK. Further, customer experience quality scale (EXQ),
were tested and validated in Indian retail stores context by Deshwal and Krishna (2016).
Some prior researchers focused on ascertaining the effect of age on customer
evaluations of store atmospherics ( Joyce and Lambert, 1996). Yildirim et al. (2015)
focused on ascertaining the effect of age, gender, and education level on store
atmospheric attributes. Although, differences among many demographic variables
such as “gender, education level, family income, family size, family life cycle, religion,
race, nationality, and occupation”, are to be examined in a different context (Mitchell,
1998; Aylott and Mitchell, 1999, 2014, 2015).
The relationship between demographic variables and experience quality dimensions
is not tested so far. Therefore, to fill up this gap, this study examines the differences in
preference of customer experience quality dimensions (peace of mind, moment of truth,
outcome focus, and product experience) by customer age, gender and education level,
and family income in the Indian retail store context. Researcher answers to following
research questions:
evaluate the dimensions of customer experience quality in the Indian retail store
context; and
(4) to ascertain whether or how groups based on family income differently evaluate
the dimensions of customer experience quality in the Indian retail store context.
Further, theoretical background of customer experience, customer experience quality
scale, and research hypothesises are discussed. After that, methodology, conclusions,
and suggestions are presented. Finally, we discuss limitations and future research.
2. Theoretical background
2.1 Customer experience quality
The origin of service experience can be traced to economics, psychology, social
psychology, management, and marketing. Therefore, existing researches on service
experience are somewhat imploded and lacks a universally accepted conceptualization
of the concept (Holbrook, 2006).
Holbrook and Hirschman (1982) coined fantasies, feelings, and fun variable of the
emotional component of consumption experience. Pine and Gilmore (1998) revealed that
organisations should provide dramatic experience to customers, alike to a theatre
presentation. Many studies showed the significance of emotional experience in consumer
behaviour (Dennis et al., 2013; Klaus and Maklan, 2012; Kozinets et al., 2002). Existing
literature of customer experience acknowledged the significance of both customer
cognition and emotion ( Jüttner et al., 2013; Edvardsson, 2005; Schembri, 2006).
All touch points are imbibed with customer experience confronts throughout the
service delivery process ( Jüttner et al., 2013) that comprise pre- and post-purchase
incidents, besides past service processes, and their impact on further experience
creation (Meyer and Schwager, 2007; Zomerdijk and Voss, 2010). Hence, customer
experience emerges as a holistic form, which is not limited to the service and the service
experience (Klaus and Maklan, 2012), and should focus on emotional, physical,
intellectual, or even spiritual components (Gentile et al., 2007). “As a holistic concept,
EXQ is most useful when operationalized in concrete frameworks that fit within the
specific context of service (Bagdare and Jain, 2013; Grewal et al., 2009; Lemke et al.,
2011; Palmer, 2010; Payne et al., 2008; Verhoef et al., 2009)” (Lin and Bennett, 2014).
Verhoef et al. (2009) revealed that components of retail customer experience can
comprise social environment, service interface, retail atmosphere, assortment, price and
promotions, and loyalty programmes. The Same year, Grewal et al. (2009) revealed
promotion, price, merchandise, supply chain, and location as main components for
displaying retailer customer experience. Further, Klaus and Maklan (2012) developed
EXQ model that has been tested in the banking sector, four sectors, i.e. fuel, service
station, mortgages, and luxury goods, and Indian retail stores context (Deshwal and
Krishna, 2016). However, the relationship between demographic variables (age, gender,
education level, family income) and experience quality dimensions has not given Customer
attention so far. Therefore, to fill up this gap, this study examines the differences in experience
preference of customer experience quality dimensions (peace of mind, moment of truth,
outcome focus, and product experience) by customer age, gender and education level,
quality
and family income in the Indian retail store context.
includes the experiences that precede the service/product encounter and continues even
after the service or product delivery has been completed (Berry et al., 2002). Studies
indicate that a conceptual difference exists between service quality and consumer
experience (Klaus and Maklan, 2011; Kim and Choi, 2013). Customer experience’s scope
is wider than service quality as it involves feelings and emotions that are not measured
while measuring service quality. In this study, we have used the four constructs to
study the different experiences of customers of brick and mortar retail stores with
varying demographic profile (Klaus and Maklan, 2011). These are:
(1) Product experience: this construct emphasises the need for the customer to
perceive that he/she may select and compare from a variety of different offerings
(Lin and Bennett, 2014). It is also made of product experience dimensions, which
play an important role in creating customer experience (Bui and Kemp, 2013).
(2) Outcome focus: this dimension deals with the goal-oriented experiences in a
customer’s behaviour (Zazia, 2012; Huffman and Houston, 1993). In addition, it
is associated with decreasing the consumers’ transaction costs by finding better
and cheaper suppliers.
(3) Moments-of-truth: this construct deals with service and the recovery of service.
It also involves the flexibility of service providers, who may or may not show
flexibility in dealing with customers for complicated matters (Liljander and
Strandvik, 1993). This dimension is affected by the service providers’ behaviour on
the current and future decisions made by the customer when he/she faces problems
( Jong and Ruyter, 2007). This dimension also is influenced by the interpersonal
skills of service providers along with the consumer’s perception of the risk
he/she might face while dealing with these service providers offerings (Lin and
Bennett, 2014).
(4) Peace of mind: this dimension is influenced by the customer’s assessment of his/
her interactions with the service provider not only before the start of service but
also after the service has been completed. This dimension is strongly influenced
by the emotional aspects of the service. This dimension also evaluates the
emotional benefits that customers may enjoy based on their service providers’
perceived expertise (Bendapudi and Berry, 1997).
3. Methodology
3.1 Frame of respondents
This study was conducted in retail stores located in the New Delhi capital of India.
Participants were selected from among the retail store customers. A 23 items EXQ
instrument with four demographic variables instrument was distributed to retail store
customers. Finally, the analysis was run on 346 responses. All responses were taken
personally using a hard copy of the questionnaire. The convenient sampling technique
was followed for collecting responses. The data were taken from Big Bazaar and Vishal
Mega mart retail stores customers situated in the New Delhi, India.
Customers were responded about their experience with retail stores. The researcher
followed five-point Likert scale (1 ¼ strongly disagree, 5 ¼ strongly agree) to get
Gender
Male Mean 3.6717 3.5539 3.6030 3.5985
SD 0.65885 0.65616 0.60925 0.59386
Female Mean 3.7551 3.6552 3.6768 3.5552
SD 0.67324 0.67892 0.73065 0.69451
Total Mean 3.7153 3.6069 3.6416 3.5759
SD 0.66676 0.66912 0.67553 0.64790
Age
Below 25 Mean 3.5433 3.4600 3.3700 3.3550
SD 0.83558 0.82338 0.83794 0.78586
25-50 Mean 3.6730 3.5709 3.5633 3.5491
SD 0.58220 0.62591 0.60907 0.63186
50 and above Mean 3.8261 3.7014 3.8297 3.6866
SD 0.67539 0.64627 0.63504 0.58965
Total Mean 3.7153 3.6069 3.6416 3.5759
SD 0.66676 0.66912 0.67553 0.64790
Education level
HSC or below Mean 3.4853 3.2588 3.4706 3.1838
SD 0.67091 0.73942 0.81130 0.84904
Graduation Mean 3.6658 3.5670 3.5359 3.4987
SD 0.67607 0.63983 0.65792 0.59941
Masters Mean 3.8535 3.7629 3.8488 3.8004
SD 0.62743 0.65288 0.61388 0.57909
Total Mean 3.7153 3.6069 3.6416 3.5759
SD 0.66676 0.66912 0.67553 0.64790
Family Income
o40,000 Mean 3.4958 3.3899 3.3861 3.3165
SD 0.70961 0.74620 0.80244 0.67784
40,000-80,000 Mean 3.7205 3.5954 3.6173 3.5519
SD 0.64473 0.62081 0.63733 0.64226
W80,000 Mean 3.8370 3.7431 3.8120 3.7482
SD 0.63383 0.63614 0.57903 0.58355
Total Mean 3.7153 3.6069 3.6416 3.5759
Table I. SD 0.66676 0.66912 0.67553 0.64790
Demographic Notes: POEMEAN, peace of mind mean; MOTMEAN, moment of truth mean; OTFMEAN, outcome
statistics focus mean; PREMEAN, product experience mean
responses from the customers. Authors examined whether or how groups based on Customer
demographic variables differently evaluate the dimensions of customer experience experience
quality in the Indian retail store context. ANOVA test was performed to ascertain the
significant difference between the categories of demographic variables with respect to
quality
EXQ dimensions. The analysis was run using SPSS 22.0 software.
947
4. Results
Cronbach’s α test was performed to the internal consistency of the customer experience
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quality dimensions items, as presented in Table II. The coefficient hence observed for
the set of 19 EXQ items was 0.915. The Cronbach’s α value of all variables was above
0.700 that represents the acceptable value of reliability. The peace of mind, moments-of-
truth, outcome focus and product experience subscales of the EXQ all had high
reliabilities. Hence, EXQ scales may be examined reliable (Figure 1).
Dimension Scale
Customer experience quality variables reliability reliability
44,9
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181
165
158
137
138
130
124
79
54.3
52.3
47.7
45.7
39.6
39.9
37.6
35.8
948
50
22.8
34
14.5
9.8
Downloaded by NETAJI SUBHASH INSTITUTE OF TECHNOLOGY At 22:44 26 September 2016 (PT)
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Peace of mind
Between groups 3.910 1 3.910 3.944 0.048
Within groups 341.090 344 0.992
Total 345.000 345
Moments-of-truth
Between groups 0.426 1 0.426 0.425 0.515
Within groups 344.574 344 1.002
Total 345.000 345
Outcome focus
Between groups 0.279 1 0.279 0.278 0.598
Within groups 344.721 344 1.002
Total 345.000 345
Table III. Product experience
ANOVA results- Between groups 0.829 1 0.829 0.829 0.363
Gender and EXQ Within groups 344.171 344 1.000
dimensions Total 345.000 345
shows ANOVA results of demographic variables and EXQ dimensions in India retail
store context. Results of the ANOVA test revealed that some components of customer
experience quality significantly differ when we relate with the components of
demographic variables. Results of H1-H16 were obtained through this analysis.
As Table III presents, overall female customers experienced more peace of mind. With
regard to peace of mind, a statistically significant difference (Sig. o0.05 level) ascertained
between male and female customers. Specifically, female customers experienced peace of
mind more than male customers did. Male and female customers did not have significant
mean difference in moment of truth, outcome focus, and product experience dimensions.
The outputs of ANOVA for peace of mind, as shown in Table III, support H1. Further the
results for moment of truth, outcome focus, and product experience was not found
significant. Hence, H2-H4 were not supported.
Factor Sum of squares df Mean square F Sig.
Customer
experience
Peace of mind quality
Between groups 4.109 2 2.054 2.067 0.128
Within groups 340.891 343 0.994
Total 345.000 345
Moments-of-truth 949
Between groups 1.945 2 0.973 0.973 0.379
Downloaded by NETAJI SUBHASH INSTITUTE OF TECHNOLOGY At 22:44 26 September 2016 (PT)
Peace of mind
Between groups 10.889 2 5.444 5.589 0.004
Within groups 334.111 343 0.974
Total 345.000 345
Moments-of-truth
Between groups 0.979 2 0.489 0.488 0.614
Within groups 344.021 343 1.003
Total 345.000 345
Outcome focus
Between groups 7.714 2 3.857 3.922 0.021
Within groups 337.286 343 0.983
Total 345.000 345
Product experience Table V.
Between groups 17.032 2 8.516 8.906 0.000 ANOVA results-
Within groups 327.968 343 0.956 Education Level
Total 345.000 345 EXQ dimensions
A significant difference was found in the means of age categories with respect to
outcome focus, which is one dimension of customer experience quality. Post hoc test
revealed that mean of age category 50 and above was significantly different from the
means of age categories below 25 and 25-50. It was found that mean of 50 and above
category for the outcome focus dimension was 3.829. The mean of 25-50 categories was
3.563 and for below 25 categories was 3.543. It can be inferred that as age increased
people start concentrating on the outcomes. Means of other dimensions of customer
experience quality such as peace of mind, moments-of-truth, and product experience
were not found significantly different when compared among age categories. The
IJRDM Sum of squares df Mean square F Sig.
44,9
Peace of mind
Between groups 8.463 2 4.232 4.313 0.014
Within groups 336.537 343 0.981
Total 345.000 345
950 Moments-of-truth
Between groups 4.077 2 2.038 2.051 0.130
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outputs of ANOVA for outcome focus, as shown in Table IV, support H7. Further the
results for peace of mind, moment of truth, and product experience was not found
significant. Hence, H5, H6, and H8 were not supported.
A significant difference was found in the means of education-level categories with
respect to three dimensions of customer experience quality such as peace of mind, outcome
focus, and product experience. No significant different was found in the means of age
categories of the moment of truth dimension of customer experience quality. In the peace of
mind dimension, a significant difference was found in the means of higher secondary or
below and masters. Hence, the results of ANOVA for peace of mind, outcome focus, and
product experience, as shown in Table V, support H9, H11, and H12. Further the results for
moment of truth was not found significant. Hence, H10 was not supported.
A significant difference was found in the means of family income categories with respect
to all four dimensions of customer experience quality such as peace of mind, a moment of
truth, product experience, and outcome focus. Therefore, peace of mind, outcome focus, and
product experience dimensions of customer experience quality support H13-H16.
Further post hoc test revealed that significant difference was found in following
family income categories of:
(1) peace of mind dimension:
• o 40,000 and 40,000-80,000
• o 40,000 and 80,000
No significant difference was found in the category of 40,000-80,000 and W80,000. Mean
value for W40,000, 40,000-80,000, and W80,000 was 3.495, 3.720, and 3.837, respectively.
(2) Outcome focus dimension:
• o 40,000 and 40,000-80,000
• o 40,000 and W 80,000
• W 80,000 and 40,000-80,000
It is apparent that significant difference was found in all categories. Mean value for Customer
W 40,000, 40,000-80,000 and W 80,000 was 3.386, 3.617, and 3.812, respectively. experience
(3) Moment of truth dimension: quality
• o 40,000 and W 80,000
No significant difference was found in other two categories such as o 40,000 and
40,000-80,000, 80,000, and 40,000-80,000. Mean for W 40,000, 40,000-80,000, and
951
W 80,000, was 3.389, 3.595, and 3.743, respectively.
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Corresponding author
Pankaj Deshwal can be contacted at: pankajdeshwal@gmail.com
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