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CHAPTER 2

2 LITERATURE REVIEW

Towards understanding experiential marketing, customer

engagement and post purchase involvement, a review of past studies is done.

2.1 EXPERIENTIAL MARKETING:

The word experiential marketing refers to marketing techniques

used for rational and emotional human beings who want the products,
communications and the shopping environment to deliver an experience
during their consumption situation (Schmitt 1999). Experiences are unique and
personal occurrences with emotional significance during the sensory approach
with the products or the environment surrounding it (Holbrook & Hirschman
1982). They are not about entertainment; companies stage an experience
whenever they engage customers in a personal memorable way. Interacting
with customers by focusing on the identification of solutions for their
problems is experience. Experiential marketing offers experiences through the
strategic experiential modules, namely sense, feel, think, act and relate
experiences and engages the customers in a pleasurable and memorable way
during their consumption situation (Schmitt 1999; Pine & Gilmore 1999).

Consumer behaviour researchers in an experiential perspective

have started considering experiences as the central element in the life of the
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modern customers as a life has been created by multiple experiences which
immerse the customers during the purchase activity. During consumption
experience, the assessment of customer satisfaction goes beyond pre-purchase
and post-purchase activities and involves a series of other activities
influencing the customer decision and future actions (Vezina 1999). It is not
limited to the experience received during the point of purchase. It cannot be
reduced as the sole of shopping experience alone. Consumption experience
involves all the stages of experiences received by the customers before, during
and after shopping. The experience received by the customers over a period of
time during their shopping can make the customers to take a decision about
their future transactions with the business (Caru & Cova 2003).

Previous studies on the cognitive and affective behaviours of the

customers view the emotional behaviours of consumers and found the fact that
the consumers are feelers, thinkers and doers, seeking fun and pleasure. When
fun and pleasure experiences are offered by the shoppers, the customers get an
emotional involvement and have a thought of shopping in the outlet (Addis &
Holbrook 2001). The consumption experience based on experiential
perspective during shopping has been classified as pre-consumption
experience, purchase experience; core consumption experience and
remembered consumption experience, this classification deals mostly with the
behavioural aspects (Arnold et al. 2002).

In an online shopping environment, perceived aesthetics, focused

attention, usability and hedonic motivation and their relationship between the
shopping environment (perceived aesthetics and usability) and the customer
(focused attention and hedonic motivation) have been studied. It is found that
motivation brings the factors of shopping environment and customers together.
It is observed that the experiences offered in different points have been
 32
influenced by shopping environment, applications used and individual
customers (Novak et al. 2000).

Dewey (1925; 1934) have described an experience as the

relationship between the self and the object. The customers have been the self
who can sense, feel, think, act and relate with the object, which is the
environment from where the products and services would be received by the
customers. It is stated that engaging in an experience involves progression
over time, emotional involvement and uniqueness that make the experience to
stand out from ordinary and the experience reaches a sort of completion,
which transforms the customer‘s to buy the product for their life time.

According to sociologists, experience has been considered as the

central element of a customer‘s life. When a customer buys a product and
utilises it, the product would be finished, which would be the end of any
consumer durable product, but the experiences gained by the customer during
the purchase and consumption would be the beginning and not the end (Miller
2001; Ritzer 2004). As experiences are the central element of customers,
marketing can build multiple experiences for the customers to sense them
emotionally during their consumption which can engage the customers to stay
attached with the business for long-run.

Daily customers are subjected to huge volumes of marketing

communication which has the power of unconsciously attracting the
customer‘s basic senses, which might be a more effective way than traditional
marketing methods in appealing to customers (Krishna 2012). The ways how
customers are sensually attracted in daily routine through effective experiential
marketing techniques have been highlighted.
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to meet out the expectations of the consumers, Pine and Gilmore
(1998) have classified pleasurable and memorable experiences based on the
operational view of experiential marketing into four realms as entertainment,
educational, aesthetic and escapist, which have been using the Schmitt‘s
dimensions of senses in the creation of richest experiences for a retail
customer.

Gupta & Vajic (2000) have stated that an experience occurs when
a customer has any sensation or knowledge acquisition resulting from some
levels of interaction with different elements of a context created by the service
provider. An experience is a type of offering to be added to the products and
services, particularly to suit the needs of the customers.

Service scape has been the context dictating what the

organization should consider in terms of environmental dimensions,
participant‘s mediating responses like cognitive, emotional and psychological,
and employee and customer behaviour including staying longer, expressing
commitment and loyalty, spending money, and meeting out the purposes of the
organization (Bitner 1986).

Customer‘s memorable experience starts from meso

environmental elements such as floor finish and ceiling materials to micro
environmental elements such as product packing and brand logo. The neatness
on the floor, the attractive light fixture and the comfortable purchase package
affect the sensory experience of the customer and create an impact about the
outlet, which would be embedded in the minds of the customers with the brand
of the outlet with which they have been associated (Song 1999).

In service industry, ―socio demographic‖ variables have

difference between the experiences received from the market and the images.
 34
Marketing strategies have been successful if they have been developed based
on certain cultural background (Lee et al. 2008). Customer satisfaction
increases with customer loyalty and vice versa (Oliver 1993). In a tourism
based study, experiential marketing focuses on customer experience, in terms
of encountering or living through situations connected with the customer‘s
own lifestyle. Experience provides sensory, embodied, emotional, cognitive
and relational values and there is a focus on the creation of synergies of
meaning, consumption and loyalty (Hannam 2007).

In retail design the brands associated with sensory experience

attract customers and stimulate strong, positive and distinctive impression
across all five senses (Song 1999). Customers remember simple experiences
easily than complex ones. Experiences are unique, so the retailer must design
the sensory experiences in such a way that the customers can enjoy the unique
range of experiential shopping environments (Floor 2006).

Sinha (2003) has studied the shopping orientation of the Indian

shoppers. About 300 respondents are approached with a structured
questionnaire and the analysis indicates that the Indian shoppers seek
emotional value more than functional value. Groeppel & Bloch (2001) also
have conducted an empirical investigation of what customers understand by
experience-oriented buying, the type of consumer attracted by it and the
consequences for store location, design, and so on. The buying experience is
identified to consist of several components. Customers consider purchasing
not only as a means of securing necessary goods but also a leisure time
activity. Mathwick et al. (2001) have introduced Cognitive Continuum Theory
(CCT) as a theoretical framework to examine the effect of consumer shopping
tasks and retail information display properties on the consumer is perception
of experiential value. In addition, congruent interactions between shopping
task and retail information display properties exert an enhancing effect on the
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reactive dimensions of value as evidenced by the perceptions of visual appeal,
entertainment value and service excellence. All these contributions indicate the
importance of value to shoppers irrespective of the format.

Terblanche & Boshoff (2004) have stated that in a retail

environment where a mix of goods and services is offered, the approach to
managing such a store should preferably be all-inclusive as opposed to
focusing on a single dimension such as service and it should focus on the
management of all the controllable dimensions of the in-store shopping
experience. Further positioning based on consumer‘s in-store shopping
experience offers retailers an alternative means of differentiation and it is
achieved by providing a superior in-store shopping experience. It is suggested
that a satisfactory in-store shopping experience enhances cumulative or overall
consumer satisfaction, which, in turn, would enhance both attitudinal loyalty
and behavioural loyalty of customers.

Even though marketers are aware of human senses towards

consumer behaviour, for many years, senses have been given minimal amount
of importance in the marketing field (Hultén et al. 2009; Hultén 2011; Hetzel,
2002).

Kaur & Sharma (2009) have studied the Indian market to uncover
the motives that drive young people to shop in department stores or malls. The
results reveal that the Indian youth primarily shop from a hedonic perspective.
They importantly serve as new product information seekers, and the retailing
firms can directly frame and communicate the requisite product information to
them.

A customer collects the information through the senses and links

it with an emotional decision (Lindstrom 2005). Customers are information
 36
seekers and they pay attention to new and interesting things (Malnar &
Vodvarka 2004). The retail environment has been divided into five
atmospheric variables such as external store variables, general interior
variables, store layout and design variables, point of purchase and decoration
variables and human variables through which the customer experiences can be
created in attracting the customers towards the outlet (Turley & Milliman
2000).

Till 1999, the experiential studies on experiences were dealing

with the behavioural, emotional and operational view. Schmitt (1999) through
his strategic experiential modules has brought out cognitive, affective,
sensorial, behavioural, psychological and knowledge approaches in measuring
the five factors, namely sense, feel, think, act and relate of experiential
marketing, which have been termed as strategic experiential modules.

2.1.1 Sense Experience

Sense experience refers to the experiential marketing element

which has been viewing customers as rational and emotional individuals
engaged in experiences offering emotional, cognitive, behavioural and
relational values (Wright et al. 2006; Schmitt 1999). Among a diverse array of
perspectives, sensory experience reveals multidisciplinary nature among
neuroscience, psychology and marketing research, showing the importance of
the relationship between the three fields in the rise of sensory experiences
(Howes 2005; Krishna 2012). Sensory experience includes the senses of
vision, hearing, smell, touch and taste, which have been explained as the five
kinds of physiologically determined hedonic and utilitarian experiences
(Wright et al. 2003; O‘Brien & Toms 2008; Lee et al. 2008).
 37
Marketers have been always aware of the significance of human
senses in studying the consumer behaviours, but senses have been ignored or
neglected from marketing strategies for many years (Hulten et al. 2009; Hulten
2011). The study by Krishna (2012) has attempted to conclude that sensory
marketing can be applied for the creation of subconscious triggers portraying
consumer perception of abstract ideas of products, wherein the concept of
sensory marketing has been defined as ‗marketing engaging the customers‘
senses and affecting the customer perception, judgement and behaviour. The
sensory trigger implies an understanding of the concepts of perception and
senses. Human mind has been limited to the sensory stimulations handled by
them and it screens information received from the outlets (Semenik 2002). The
perceptual screen filters unwanted data and protects the thought process of
humans. The perceptual screens are physiological or psychological in nature
and they act as subconscious filters. Data in terms of customer needs, motives,
expectations and personalities have been assessed by the psychological
screens. The five senses used for the detection of incoming data and
measurement of dimensions and strength of physical stimuli have been
involved in the physiological stimuli (Arens 2006).

According to Kotler (2003), the main sensory channels have been

sight, sound, smell and touch. Sense experience means the providing of good
sensory experiences by aesthetical pleasure, excitement, satisfaction and sense
of beauty. It can be aroused by tackling sight (colour brightness, size and
shape), hearing (aural and pitch), smell (scent and freshness), touch (softness,
smoothness and temperature) and taste. Sensory marketing provides joy,
excitement and a satisfied mood to customers (Lee et al. 2008).

Visual sense: According to Kim & Sullivan (2007), the sense of sight
includes the visual dimensions of color, brightness, size and shapes. From
previous studies, it has been identified that the sense of sight is probably the
 38
most developed and prominent human sense which can be regarded as the
most powerful sense for discovering changes and differences in the
environment, and it is also the most common sense in detecting goods or
services (Hultén et al. 2009; Krishna 2012; Wright 2006). According to
Arnould et al. (2004), most of the past researches on vision in consumer
research has examined colour or more complex visual stimuli, like words and
pictures.

The sense of sight includes the visual dimensions of color, brightness,

size and shapes (Kim & Sullivan 2007). It is probably the most developed and
prominent human sense (Hultén et al. 2009; Krishna 2012; Wright 2006).
Hultén (2011) has also stated that sight can be regarded as the most powerful
sense for discovering the changes and differences in the environment, and it is
also the most common sense in detecting goods or services. of all five human
senses, the sense of sight then also the sense that has been focused mostly by
marketing practitioners.

Visual sense includes layout, brightness and color, and these are
the outlet environmental cues affecting customer mood and purchasing
behavior (Kotler 1974).The visual aspect of an outlet must be considered to
match four different functions (Roullet & Rieunier 2009). The power of selling
through sight alone has been fundamental to retailing throughout the ages.
Beginning with the shop window, customers could view products available in
store that would influence their decisions to explore further. Visual
merchandising, store design including color and light, packaging, ticketing,
signage, point of sale and space planning are all forms of visual
communication techniques used by retailers.

Among various store image attributes, assortment and low price

account to 86 % of variation in outlet choice (Finn & Louverie 1996).
Customers rank product quality in first place, freshness in second place and
 39
assortment in the third place (Bellenger et al. 1977). The size of assortment
strictly depends on the available surface area in the store; a volume retailer
would partially or fully meet customer expectations depending on outlet area
(Mittal & Gupta 2012). The colour used in advertising by the outlet plays an
important role in the success of marketing stimuli (Arnould et al.. 2004;
Wolfe; Kluener & Levi 2006). According to Assael (1995), advertisers
frequently make use of music through jingles or as background themes to
create positive associations with brands.

Packaging seems to be one of the most important factors in

purchase decisions made at the point of sale (Prendergast & Pitt 1996) where it
becomes an important part of the selling process in the outlets (Rettie &
Brewer 2000). It is a key attribute perceived by consumers. It cannot escape
from performing the marketing function even if an outlet does not explicitly
recognize the marketing aspects of packaging. The package of grocery
products is a critical factor in the decision making process because it
communicates the product quality to consumers (Kupiec & Revell 2001).

The term atmospherics is defined by Kotler (1974) as the design

of buying environments, producing emotional effects within the customers,
which enhances the profitability of the outlets. According to Bitner (1986),
―marketing goals such as relationship building (Crosbyl Evans & Cowles
1990) could be influenced by the design of the physical setting‖. ―The ability
of the physical environment to influence behaviors and to create an image is
particularly apparent for service businesses such as hotels, restaurants,
professional offices, banks, retail stores, and hospitals (Baker 1986; Bitner
1986; Booms & Bitner 1982; Kotler 1977; Shostack 1977; Upah & Fulton
1985; Zeithaml; Parasuraman& Berry 1985)‖. Donovan & Rossiter (1982)
have found that approach behaviors in retail setting, including shopping
enjoyment, returning, attraction and friendliness toward others, spending
 40
money, time spent on browsing, and exploration of the store are influenced by
the perceptions of the environment.

According to Bellizzi & Hite (1992) color influences a

customer‘s affective response and patronage likelihood in the context of retail
experiences. Results of previous studies indicate that human exposure to warm
hues (red-orange-yellow) raises blood pressure, heart rate and perspiration,
whereas exposure to cool hues (green-blue) has the opposite effect. In
applying these findings to commercial environments, the results of studies
show that yellow telephone booths increase the speed of phone calls, yellow
walls and fixtures result in people moving through stores at a faster pace, and
orange fixtures in ―fast food‖ restaurants stimulate hunger. Colour can
therefore play an important role in the success of marketing stimuli; the colour
used in advertising or that used for package design (Arnould et al. 2004;
Wolfe; Kluener & Levi 2006).

In the same way, Song (2009) has pointed out the impact of
customer‘s memorable experience that starts from meso environmental
elements such as floors finish and ceiling materials, to micro environment
elements, such as product packaging and brand logo. The neatness on the
floor, the attractive light fixture, and the comfortable purchase package may
affect the customer‘s experience and create an impact in them about the outlet.

Sound sense: Hearing is largely considered to be secondary in

terms of perceptual power. When compared with the sense of sight, the
auditory system (ears) is capable of picking up and conveying various kinds of
information to the brain (Wright 2006). Arnould et al.. (2004) have argued that
sound patterns can create a mood of relaxation or stimulation, and pointed out
that religions and cults have been using music for many years to induce
trances or other moods. Hultén (2011) has also pointed out that the sense of
 41
sound can be linked to emotions and feelings and can impact brand
experiences and interpretations. Marketers are, however, advised to pretest
such stimuli to ensure that positive associations with a brand would indeed be
created (Assael 1995). According to Meharabian & Russel (1974), some
people seek calm and pleasant shopping environments; in highly informative
environment, a customer may feel excited, aroused or stimulated and lower
informative environment can have an opposite affect and make the customers
to feel calm and relaxed (Donovan & Rossiter 1982). Calm and pleasant music
in the environment has especially positive effect on reducing stress and
anxiety in a variety of environments (Tanisk & Routhieaux 1999).

Milliman (1982; 1986) has identified that the tempo of

background music played affects the customer‘s inflow and return on
investment for the outlets both in supermarkets and in restaurant settings.
Yalch & Spangenberg (1988), have found that familiarity of music played
affects customer‘s perceptions of how much time they spent on shopping;
when the music is unfamiliar to subjects, they believe they have spent more
time on shopping. The sense of sound takes in aural dimensions of volume and
pitch (Kim & Sullivan 2007).

Smell Sense: It is believed that the human smelling ability

develops and reaches a plateau at about the age of eight and then declines as
humans grow older. The sense of smell is the only sense that cannot be turned
off (Suhonen & Tengvall 2009). This sense is the most direct of all senses, and
odour can affect significantly an individual‘s evaluation of things and other
people (Arnould et al. 2004). The sense of smell can also be related to pleasure
and happiness and is believed to be correlated closely with emotions and
memories (Hultén 2011). It should, however, be noted that, even though the
sense of smell is less important for humans than for many other animals,
odours have a persistent and omnipresent quality that may be difficult to
 42
escape (Arnould et al. 2004). Evidence seems to suggest that good or bad
feelings generated by smells in humans are being associated with upbringing,
culture, learning, emotion and psychology (Wright 2006). For scent to be used
as a marketing tool to attract attention of customers to a specific product, it is
vital that the scent corresponds to the product (Suhonen & Tengvall 2009).
Teller and Dennis (2012), however, argued that the effect of ambient scent on
consumer-related reactions received relatively little attention from marketing
researchers in the past. The sense of smell takes in olfactory dimensions of
scent and freshness (Kim & Sullivan 2007). Smell has a strong association
with feeling and it influences people‘s activities. It affects the areas of the
brain that deal with emotions, feelings and motivation, which can lead to a
specific behavioral response, i.e., selection of a particular food retailing outlet.
Pleasant odor and fragrance provide a space with favourable identity (Song
2009). Tuan (1978) has suggested that odors lend character to objects and
places, making them distinctive, easier to identify and remember.

Specific fragrances perform precise functions. Lemon and

peppermint can reinforce alertness and energy while lavender and cedar can
reduce tension. Air fresheners in food retail outlets generally have lemony
smell. Most of the food retailing outlets use fragrance to heating and air
conditioning systems to boost work efficiency and to reduce stress. Fragrance
makes a space more favorable to some. Likewise, odor is a key motivational
factor in human behavior, playing a critical role in behavioral patterns (Song
2009).

Taste sense: According to Wright (2006), the average adult

person has approximately 10 000 taste buds that are able to detect the chemical
constituents of food and beverages. Taste buds are grouped according to the
themes like salt, sour, sweet and bitter at various locations inside the mouth.
People use the tip of the tongue to taste sweet things, the back of the tongue to
 43
taste bitter things and the sides to taste bitter things, while they taste salty
things up front and along the surface (Arnould et al.. 2004). Assael (1995) has
pointed out that taste can be an elusive perception.

Touch sense: Touch or tactile perception is a sense that is

different from sight and hearing that it is not localised to one area of the body.
Humans can therefore ‗feel‘ through the skin with any part of their bodies, be
it through the hands, fingers, feet, toes, arms, legs, head, face, chest or bottom
(Wright 2006). Numerous studies have highlighted the vital effects of touch.
Studies have, for example, shown that babies that are massaged have gained
weight as much as 50% faster than unmassaged babies, indicating that touch is
critical in the psychological as well as the physical development of children
and that sustained touching can reduce a human‘s heart rate and can have a
calming effect on a person (Arnould et al. 2004). Assael (1995) also has noted
that consumers also use ‗feel‘ as a means of determining quality by using the
feel of textile fabrics, clothing, carpeting or furniture to evaluate the quality of
the specific product.

The competitive context is more intense with the move of self-

service retail formats while packaging increases its key characteristic as the
―salesman on the shelf‖. The critical importance of packaging design is
growing in competitive marketing conditions as package becomes a primary
vehicle for communication and branding. The package standing out on the
shelf affects the consumer‘s decision process, and the package design must
ensure that the consumer‘s response is favorable. The packing is made more
complex by several conflicting trends in the consumer‘s decision making. on
the one hand, some consumers are paying more attention to label information,
as they become more concerned about health and nutrition (Coulson 2000).on
the other hand, the sense of touch takes in tactile dimensions of softness,
smoothness and temperature (Kim & Sullivan 2007).
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2.1.2 Feel Experience

Affect has been identified as a third contributor to the service

experience. It is conceptually different from the outcome of a cognitive
evaluation process. It not only forms a source of motivation but also a
significant impact upon consumer‘s information processing and eventually
consumer‘s choice. Several taxonomies have been proposed to classify and
describe the large number of subjective feelings that the consumers may have.
Mano & Oliver (1993) have suggested that affect can be described according
to valence (e.g. happy vs sad) and intensity of arousal. Furthermore, the
distinction between emotions and moods is often made. Emotions are notable
and intense forms of affect attributable to a specific cause while moods reflect
mild generalised affective states that are induced by a variety of factors (Clark
& Isen 1982; Gardner 1985; 1987; Gardner & Hill 1989). Moods form an
affective context for behaviour (Clark & Isen 1982). Although they cannot be
controlled by service providers, moods can be influenced by aspects of a
service provider‘s behaviour, like an employee's smile and ambient service
environment (Cunningham 1979; Hochchild 1983). Moods reflect how
consumers feel during their encounters with the service provider.

There is an increasing evidence that mood can best be

characterised in terms of two independent dimensions: positive and negative.
According to Watson & Tellegen (1985), the positive dimension refers to the
extent to which an individual affirms a zest for life. Clark & Isen (1982) have
suggested that people continuously strive for positive mood and avoid negative
mood states. This implies that consumers would attempt to avoid service
situations in which they experience a negative mood. Alternatively, if a
consumer experiences positive affect, one would expect that this encourages
him/her to repeat the service experience, and hence become loyal to the service
provider.
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Customers who are motivated by the experiential aspects of
shopping appreciate retailers who create emotional value. This can be defined
as the ―perceived utility derived from an alternative‘s capacity to arouse
feelings or affective states‖ (Sheth et al. 1991). Arnold & Reynolds (2003)
have conceptualized different dimensions of the experiential needs and wants
of retail shoppers, or ―hedonic shopping motivations.‖ These include enjoying
shopping with friends and family, bargain-hunting, and seeking adventure or
relaxation. Besides being an instrumental occasion for getting the needed
products, the shopping experience becomes an end valued for its own sake
(Babin et al. 1994; Holbrook & Hirschman 1982). This emphasizes the role of
store environment and personal service (Turley & Milliman 2000). The use of
visual, auditory, olfactory, sensory, and even gustatory clues may be an
effective way to create emotional customer value.

Carbone (2004) has stated the ―discipline of designing

experiences blends creativity with strategic rigor, enabling experiences to
connect on a customer-defined value in a manageable and sustainable system.
Clues are the heart of the system that manages experience, and creating and
integrating clues are at the heart of designing experiences.‖ Disney is cited as
an example of a company that is able to orchestrate the ―humanic clues‖ (clues
provided by people) and ―mechanic clues‖ (clues provided by the
environment) to create a customer experience that creates value in its own
right. In retailing, there are many recent examples of using atmospherics and
themes (e.g. flagship stores like NikeTown) as well as additional services (e.g.
Wi-Fi, in-store cafe‘s, and so on), to encourage customers to spend time and
enjoy shopping. Barnes & Noble, a Fortune 500 company and the world‘s
largest bookseller, provides a classic example of a company that differentiates
itself with an emotional value proposition. It is among the first book retailers
to pay attention to providing a comfortable ambiance. By introducing in-store
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cafes, the company encourages shoppers to relax and spend their leisure time
browsing the books. Emotional value propositions can be combined with
economic and functional value. Trader Joe‘s is an example of a grocery store
that combines economic and emotional values in its value proposition. It is a
place where many customers go with rational and emotional motives: to save
money, to seek novelty and to enjoy the thrill of bargain-hunting. It is based on
direct buying and extensive use of own brands. It results from exotic products;
friendly service provided by the staff in their Hawaiian shirts and a laid-back
in-store experience featuring like a nautical theme.

According to Duff (2006), shopping experience that creates

functional and emotional values aims to be efficient and pleasurable at the
same time. For example, the Ahold-owned Stop & Shop Supermarket
Company has experimented with portable product-scanning systems to help
customers find the products and offers easily, update and differentiate the
shopping experience, and potentially make it more pleasant as well. In
addition, the ―personal food shopper‖ called the Shopping Buddy, Stop &
Shop has collaborated with Starbucks and opened in-store cafes in its stores.

According to Berry et al. (2002), an emotional orientation is a

key factor that customers seek with the outlets in the modern environment. In
this type of experience, customer‘s perception of convenience like opening
hours, location and parking would have positive influence on their emotional
attachment with the outlet.

Consumer‘s perceived expenditure of time and effort interact to

influence their perceptions of service convenience, and retail facilities can be
designed to affect those time and effort perceptions. For example, a central
location can reduce the transaction costs associated with shopping
transportation cost and time spent. In addition to a convenient location, other
 47
convenience incentives provided by retailers like longer operating hours or
ample parking, can draw patrons to a store and develop an emotional bond for
the customers with the outlet (Hansen & Deutscher 1977).

2.1.3 Think Experience

The think experience is connected to the thinking or conscious

mental processes. An offering may engage customers in using their creativity
in situations of problem solving. In some cases, the outlet would change the
customer‘s usual idea of an outlet or some common mental assumptions.
Creation of cognitive and problem-solving experiences within the customer
would engage them creatively. The intelligence of the customers is being
utilised in the creation of cognitive experiences. Think experience attracts the
customers by the application of fun, excitement and stimulus within the outlets
(Lee et al. 2008).

2.1.4 Act Experience

The act experience comes from the practical act of doing

something. This experience is not only active when the outlet is used but also
during the entire outlet lifecycle. Customers are more involved in the product
decision and they use information more extensively. Modern customers are
often looking for ways to reduce the time spent on food shopping and
preparation. This can influence buying decision processes too as time pressure
reduces detailed consideration of outlet selection. Initialising the customer to
do things in an alternative way by enriching the customer life through physical
experience. Unique bodily experiences can be created within the customers
through act experiences (Schmitt 1999).
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2.1.5 Relate Experience

Schmitt (1999) has argued that the customers appeal to the need
to be perceived positively by others, i.e., one‘s peers, girl friend, boy friend or
spouse, family and colleagues. There is an extensive literature examining the
influence of cross-cultural differences in consumption (Jacobs et al. 1991;
Levy 2009). Cultural orientation may have an effect not just on product
meaning after acquisition, but on the actual process of shopping. Shopping
activity is a social event whose meaning is likely to be even more closely tied
to culture than the meaning of the product. Although some early researches
examine mundane consumer shopping using ethnographic methods, recent
interest in the area has grown (Miller 2001; Otnes et al. 1995). Miller et al.
(1998) have found that shopping as an activity is not just about product
acquisition, but is much a part of social relationships. The shopping place can
provide identity for its participants, especially for groups that might be
gradually losing their distinctive identity. Shopping needs not to be done just
for the functional purpose.

Schmitt (1999) has stated that relate campaigns appeal to the

customer‘s desire for self-improvement i.e., a future ideal self, a customer is
willing to relate shopping behaviour that can be cultivated by an individual
from his or her school or parents (Carlson & Grossbart 1988; Wackman et al.
1977). It can also be the social behaviour that is adopted from societal norms
that define what is desirable (Cialdini et al. 1990). Shopping behaviours like
any other behaviour is open to influence by the norms of the social group with
which one identifies. One compares oneself and adjusts one‘s behaviors more
with similar others than with dissimilar others (Miller et al. 1988). If one‘s
social group values of shopping in second hand thrift stores on Saturdays, one
may then engage in that activity with a much greater intensity than those
outside of the social or cultural groups.
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Dewey (1934) has introduced the five dimensions of experiences
namely sense, feel, think, act and relate in sociology and psychology related
literature. Likewise, Schmitt (1999) has propounded the same five significant
dimensions in experiential marketing literature.

2.2 CUSTOMER ENGAGEMENT

An important development in the fields of psychology,

management, information systems, marketing, education and practitioner
literature during the last few decades has been Customer Engagement (CE)
which has been ranging from general to specific dimensions (Khan 1990).
From the perspective of practitioners, CE has been defined as activities
―facilitating interactions that strengthen the emotional, psychological or
physical investment a customer has in a brand‖ (Sedley 2010). Academics
look CE as ―intensity of customer participation with both representatives of
the firms and with other customers in a collaborative knowledge exchange
process‖ (Wagner & Majchrzak 2007).

CE is the intensity of customer‘s participation and involvement

with the outlets of offerings or activities, which is either initiated by the
customer or the outlet. It is one of the marketing concepts grown out of social
interaction. The customer who is engaged whereas interacts with the outlet
often and gets the products which are available there for sale. The customers
would have their own personal feelings about the outlet and they would feel
free to offer their personal views or customers spend their quality of personal
time in thinking about the outlet (Lauren Bielski 2008). Fred and Bain have
stated that ―Treat people the way you want to be treated, is not only an ethical
way to operate, it can yield a payoff‖. In this sense, customer engagement is
measured by value, efficiency, trust, consistency and relevance.
 50
Researchers have suggested that customer engagement is a
psychological state, occurring by virtue of customer experience with focal
agent/product within specific service environment/relationship (Brodie et al.
2011). Customer engagement is encouraged by the sensory appeal/experience,
where sensory experience is received by the customer from the environment
(O‘Brien & Toms 2008). Since all experiences of customer engagement
revolve around products, services, brands, activities or personal relationships,
in the retail environment, customer engagement at retail environment is
necessary (Vivek et al. 2012).

Wright et al. (2006), have argued for the inclusion of the threads
of experience, in customer engagement particularly sensory threads of
experience in customer engagement which has been previously ignored. The
inclusion of sensory experience in customer engagement is important because
of the holistic, aesthetic and hedonic functions it serves. The hedonic function
provides guidelines for affect, social interaction and entertainment
(Hassenzahl & Tractinsky 2006).

Researchers advocate that one of the main pathways in reaching

customer engagement is by giving a much stronger focus on the customers
(Peppers & Rogers 2000; Farinet & Ploncher 2002; Kotler & Keller 2006).
Engagement fundamentally incorporates cognitive, emotional and
psychological components. A specific growing concept in marketing concerns
the customer‘s emotions, feelings and the creation of experiences. In this
perspective, the main idea is to develop the notion of CE to the continuing
concept of customer experience (Gentile; Spiller & Noci 2007).

As social media enhances interactions among customers and brand and

provides new possibilities for customers‘ empowerment and activities,
customer engagement is often investigated in the online context. However, it is
 51
equally considered in other situations of marketing communication, like
loyalty programs or events (Gummerus et al. 2012).

The customer-orientation paradigm and customer-centric logic

emphasize the importance of investigating the firm-customer interactions and
consumer‘s active participation in the creation of marketing value (Kumar et
al. 1995).

Customer engagement as a concept is very broad the attributes of

customer engagement are operationalized as focused attention, perceived
usability, endurability, novelty, aesthetics and felt involvement (O‘Brien 2010)
and still in other ways, widely used in customer engagement. O‘Brien & Toms
(2008) have derived the attributes of customer engagement from four theories
and four application areas. The theories are flow theory (Chapman 1997;
Csikszentmihalyi 1990), aesthetic theory, play theory (Stephenson 1967) and
information interaction theory (Toms 2002) that proposed have aesthetics,
affective appeal, challenge, feedback, motivation and sensory appeal as the
relevant attributes to customer engagement. However, the applications such as
education (Jacques et al. 1995), video game (Said 2004), online shopping and
web searching (Nahl & Bilal 2007; Arnold & Reynolds 2003; Webster &
Ahuja 2006; Toms 1998; 2000; Lavie & Tractinsky 2004; Skelly et al. 1994;
Huang 2003) propose aesthetic appeal, attention, challenge, endurability,
feedback, interactivity, perceived user control, pleasure, sensory appeal and
novelty as the attributes of customer engagement.

Significant literature reviews of the notion of customer

engagement and the engagement in general have already been conducted in the
recent years (Brodie et al. 2011; Vivek et al. 2012; Hollebeek 2011) and they
have pointed out the following outcomes. Firstly, the studies emphasize that
customer engagement has solid tradition in other disciplines such as
 52
organizational behavior, education, informatics, psychology, sociology,
management, health communication and political sciences. (Vivek et al. 2012;
Brodie et al. 2011), which exposes its general relevancy for social sciences.
Secondly, as the concept is only in the process of being established in the
academic literature, many researchers have come up with different definitions
and conceptualizations (Van Doorn et al. 2010; Brodie et al. 2011; Sashi 2012;
Higgins & Scholer 2009; Mollen & Wilson 2010; Calder et al. 2009). While
some of them conceptualize the phenomenon on a highly abstract level, as, for
instance, establishing a link with the value co-creation theory (Brodie et al.
2011), others focus mainly on one component of the customer engagement
process, i.e., antecedents (Mollen & Wilson 2010), behavioral acts as such
(Van Doorn et al. 2009), or applications of concepts application in specific
media environment (Calder et al. 2009). It can be also noted that so far only a
few studies have dealt with the concept from a critical angle (Gambetti &
Graffigna, 2010; Mandelli & Accoto 2012), added the social dimension to it
(Fliess et al. 2012) or proposed a qualitative approach to it (Gambetti &
Graffigna 2012). Still, this vivid interest has not yet led to an agreement about
the most accurate and recognized conceptualization of the phenomenon in the
research community (Brodie et al. 2011; Vivek et al. 2012; Gummerus et al.
2012).

Van Doorn et al. (2011) have considered customer engagement as

―… behaviors (that) go beyond transactions and may be specifically defined as
customer behavioral manifestations that have a brand or a firm focus, beyond
purchase, resulting from motivational drivers.‖ Calder et al. (2009) have
defined that the engagement is actually established through user‘s experience
with the media, and thus the behaviours represent only a consequence of the
engagement and are not their indicators. The user‘s telepresence and sustained
attention can also be viewed as a part of the engagement process (Mollen &
 53
Wilson 2010). Such studies become especially relevant in the online
environment where different levels of interactivity influence the process of
engagement (Mollen & Wilson 2010; Pagani & Mirabello 2011-2012). Calder
et al. (2009) has shown that engagement with online media is triggered by new
motivational factors that differ to a certain extent from those that lead to the
engagement with traditional media as the social and interactive components
become crucial, which is further confirmed by Pagani & Mirabello (2011-
2012).

Furthermore, it is to be noted that multidimensional approach to

customer engagement aim to bridge the customer‘s and firm‘s perspectives by
applying the conceptualization within the larger context of value co-creation
and customer‘s active role in it. Studies within this research stream often
focus on linking the cognitive and affective triggers with engaging behaviors
(Mollen & Wilson 2010; Sashi 2102; Brodie et al. 2011; Vivek et al. 2012).

Through the analysis of the marketing debate, Gambetti &

Graffigna (2010) have emphasized the complex nature of the customer
engagement as it is built or influenced by many different components and that
it has to be considered in specific contexts as it is mutable due to its
postmodern character. Customer engagement should thus be approached with
qualitative studies as they would better capture its multi-faceted reality on a
social level. Further, a complex and critical analysis by Mandelli & Accoto
(2012) has highlighted that the process of engagement (intended as the active
behavior of the customer) is strongly linked to the process of interactions, i.e.,
to the processes of negotiated meaning and discourse, and thus always
embedded in the socio-cultural context of the relationship. It is emphasized
that applying a direct link between customer engagement and value co-
creation (assuming that the active behavior is always positive for the
relationship) oversimplifies the reality as the value of interactions and
 54
experience for customers emerges from the perceived value of this experience
and not merely from ―being engaged‖.

While the notion of ‗‗engagement‘‘ in business relationships is

not new, significant practitioner‘s interest in the concept has developed in the
last decade (Harvey 2005; Haven 2007). This interest is demonstrated by the
number of business conferences, seminars, webinars and roundtables on the
topic of ‗‗customer-‘‘ and/or ‗‗consumer engagement.‘‘ The terms are also
being given considerable attention by several consulting companies, including
Nielsen Media Research, the Gallup Group and IAG Research. Additionally,
the Advertising Research Foundation, the American Association of
Advertising Agencies and the Association of National Advertisers are working
on ways to define and measure customer engagement. It is suggested that
within interactive and dynamic business environments, CE represents a
strategic imperative for generating enhanced corporate performance, including
sales growth (Neff 2007), superior competitive advantage (Sedley 2008) and
profitability (Voyles 2007). The rationale underlying these assertions is that
engaged customers play a key role in viral marketing activity by providing
referrals and recommendations for specific products, services, or brands to
others. Engaged customers can also play an important role in new
product/service development (Hoyer et al. 2010; Kothandaraman & Wilson
2001; Nambisan & Nambisan 2008), and in co-creating experience and values
(Brakus; Schmitt& Zarantello 2009; Prahalad & Ramaswamy 2004). This
interest in the CE concept observed in the business practice discourse, coupled
with the recent increasing use of CE by marketing academics, has led the
Marketing Science Institute (MSI) to list CE as a key research priority for the
period 2010-2012 (Marketing Science Institute 2010). The term
‗‗engagement‘‘ has been used in a variety of academic disciplines including
 55
sociology, political science, psychology and organizational behavior in the last
decade (Achterberg et al. 2003; Resnick 2001; Saks 2006).

Despite the growing popularity of the term ‗‗engagement,‘‘ a few

researchers have attempted to define the concept or examine how it differs
from similar relational concepts, such as participation and involvement.
Exceptions include some researchers (Patterson; Yu & de Ruyter (2006);
Vivek; Beatty& Morgan (2010), Hollebeek (2011), and Mollen & Wilson
(2010)), who have defined CE in terms of a psychological state. Bowden
(2009a), in contrast, has viewed CE as a psychological process, which drives
customer loyalty.

Van Doorn et al. (2010) have addressed ‗‗customer engagement

behaviors,‘‘ which result from motivational drivers including word-of-mouth
activity, Customer-to-Customer (C2C) interactions and blogging activity. It is
suggested that ‗‗customer engagement behaviours go beyond transactions‘‘,
and may be defined as ‗‗customers‘ behavioural manifestations that have a
brand or firm-focus, beyond purchase, resulting from motivational drivers‘‘.
Based on this rationale, a theoretical model linking customer engagement
behaviours with specific customer, firm and contextual antecedents and
consequences is developed.

Additionally, the use of the term ‗‗engagement‘‘ has been traced

back to the 17th century when it was used to describe a number of notions,
including a moral or legal obligation, tie of duty, betrothal, employment or
military conflict (Oxford English Dictionary 2009). Since then, more
volitional (Jennings & Stoker 2004) and discretionary (Frank; Finnegan&
Taylor 2004) interpretations of the concept have emerged in the literature,
including those addressing the notion of ‗‗connection,‘‘ ‗‗attachment,‘‘
‗‗emotional involvement,‘‘ and ‗‗participation‘‘ that have been used to
 56
describe specific engagement forms (London; Downey& Mace 2007). At the
meta level, ‗‗engagement,‘‘ as a form of social, interactive behavior, has been
characterized as a transient state occurring within broader relevant engagement
processes developing over time (Bryson & Hand 2007; Huo; Binning& Molina
2009). In the last two decades, the term ‗‗engagement‘‘ has been used
extensively in many fields including psychology, sociology, political science
and organizational behavior, leading to a variety of conceptual approaches that
highlight different aspects of the concept (Hollebeek 2011; Ilic 2008). While
‗‗civic engagement‘‘ has been studied in sociology (Jennings & Stoker 2004;
Mondak et al. 2010), ‗‗social engagement‘‘ has been examined in the field of
psychology (Achterberg et al. 2003; Huo; Binning& Molina 2009). Further,
educational psychology has explored ‗‗student engagement‘‘ (Bryson & Hand
2007; Hu 2010) while political science has examined the ‗‗engagement of
nation states‘‘ (Kane 2008; Resnick 2001). Moreover, in the organizational
behavior/management literature, the terms ‗‗employee engagement‘‘
(Catteeuw; Flynn & Vonderhorst 2007; Crawford; LePine& Rich 2010) and
‗‗stakeholder engagement‘‘ (Greenwood 2007; Noland & Phillips 2010) have
been explored.

2.3 POST PURCHASE INVOLVEMENT

Post Purchase Involvement refers to the events and activities

engaged in by the customers that are not directly related to search, alternative
evaluation and decision making involving brand choice (Vivek et al. 2012). Its
dimensions include value (Sheth; Newman & Gross 1991; Holbrook 2006),
trust (Morgan & Hunt 1994; Ganesan 1994), affective commitment (Verhoef;
Franses & Hoekstra 2002; Taylor 2004), word of mouth (Anderson 1998;
Matos & Rossi 2008), loyalty (Jacoby & Chestnut 1978; Oliver 1999) and
 57
brand community involvement (Muniz O‘Guinn 2001; Mc Alexander et al.
2002).

Value: Retail customers receive multiple values from the

experiences offered (Sheth; Newman & Gross 1991). Existing researches
suggest that the value is being determined by the beneficiary, i.e., the
customers. Holbrook‘s (1999) conceptualisation of values includes operative
(Perceived usability and endurability) and reflective (felt involvement,
aesthetics, novelty and focal attention) dimensions of experience. Vargo &
Lusch (2004) have noted that value creation process represents the key driver
of customer engagement and customer experience. A study by various
researchers reflects that value has been conceptualised and empirically tested
as the core of marketing activities (Houston & Gassenheimer 2006; Bolton &
Drew 1991; Sirdeshmukh; Singh & Sabol 2002).

Trust: In the study Blythe et al. (2003), it is found that without

the conceptual development of user experience and related consequences such
as trust, loyalty, identity and engagement, researches related to humans cannot
be fully realised. In e-commerce, trust is identified as an important factor as
the engaged customers must have confidence on the online transactions which
are not transparent with the internet (Gefen 2000; Kim et al. 2009). The
Theory of Reasoned Action (TRA) model brings the assumption that humans
are rational decision makers making decisions based on the available
information and the best outcome of a behaviour exists with a cognitive
readiness or intention to perform a behaviour. Based on this, Choudhury &
Kacmar (2002) have formed a web based trust model and explained the role of
trusting beliefs about vendor attributes leading to the formation of trust related
factors. Trust is formed by the retail outlet through the engagement of
customers, which has been bringing felt involvement, focal attention,
perceived usability, endurability, novelty and aesthetics with multiple targets
 58
such as store environment, sales-person, product information or purchasing
process (Pavlou & Fygenson 2006; Plank; Reid & Pullins 1999).

Affective commitment: Affective commitment is ―the

psychological attachment of an exchange partner to the other and is based on
feelings of identification, loyalty and affiliation‖ (Verhoef; Franses &
Hoekstra 2002). Irving & Taylor (2004) have suggested that affective
commitment is a ―desire based attachment‖. It reflects a psychological bond
between the customer and the outlet which motivates the customer to remain
in a relationship with an outlet because the customer genuinely wants to be
there. Higher levels of benefits that result from engagement with outlet‘s
offerings or activities would tend to produce greater affective commitment
towards the outlet (Bendapudi & Berry 1997). As customer engagement has a
positive association with an individual‘s affective commitment towards the
outlet, the customer‘s focus on engagement is associated with affective
commitment.

Word-of-mouth: Word-of-mouth may be defined as informal person-

to-person communication. A satisfied customer intends to recommend the
outlet/product to other people. Moreover, service customers are influenced by
other people‘s opinions. Hence an understanding word-of-mouth
communication and its control are important for outlet‘s offering services. The
best way to get positive ―word of mouth‖ is to create memorable and positive
service experiences (Zeithmal 1996). The satisfaction with the service from a
previous experience becomes positive word-of-mouth communication
(Bearden & Teel 1983; Woodside et al. 1989).

Average customers shares the problems associated with a product

with 9 to 10 people, whereas satisfied customers recommend it to all people.
Marketing views word-of-mouth as a promotional tool. Favourable word-of-
 59
mouth may include ―relating pleasant, vivid, or novel experiences;
recommendations to others; and even conspicuous display‖ (Anderson 1998).
Researchers argue that satisfied and committed customers are highly effective
facilitators of positive word-of-mouth, and that highly committed customers
are more likely to provide positive word-of-mouth and act as an advocate
(Evans 1997; Bone 1995).

Loyalty: As customer loyalty may act as a barrier to customer

switching behaviour as it has an impact upon the development of a sustainable
competitive edge (Keaveney 1995; Gremler & Brown 1996). During the past
decades, customer satisfaction has frequently been advanced to account for
customer loyalty (Newman & Werbel 1973; Bearden & Teel 1983; Bitner
1990; Fornell 1992; Dick & Basu 1994; Oliver 1997). In this, an implicit
theme is that positive evaluations of the model on the basis of expectancy-
disconfirmation of service providers would instigate customers to favour them
with their patronage. However, the direct relationship between customer
evaluations of services and loyalty has remained somewhat equivocal. For
instance, Bloemer & Kasper (1995) have demonstrated that the satisfaction-
loyalty relationship is not simple and straightforward as the level of
elaboration on the part of the customer may act as a moderator between
satisfaction and loyalty. Furthermore, Oliva et al. (1992) have argued that the
relationship between service satisfaction and loyalty is non-linear, meaning
that if satisfaction increases above a certain level, customer loyalty will
increase rapidly. However, it is also shown that loyalty remains unaffected
over a relatively large range of satisfaction levels that fall below that certain
level.

Brand community involvement: Customer involvement has

been stated as a stimulus relevant to customer needs and values (Buchholz &
Smith 1991). Based on the past literature, it has been found that when they get
 60
involved, the Customers pay more attention (think) on related messages, brand
processing (feel) and take in the brand information forming preference of the
brand based on these information (Laczniak; Muehling & Grossbart 1989).

The degree of customer involvement is expected to influence both the

amount and the quality of customer‘s cognitive response. In terms of the
amount of cognitive response, involved customers engage in more labored
information search and acquisition strategies. When actively searching for
brand related information, the interest in outlet information is maximum, as is
the desire to think about the outlet, its claim and the brand. Increased cognitive
effort provides a qualitative difference in message processing as involvement
increases. Involved customers are more likely to process outlet information at
a deep level where they actively evaluate the message. These cognitive
evaluations can be directed towards the importance, persuasiveness or
relevance of the brand (Buchholz &Smith 1991).

Krugman (1965) has stated that when the level of involvement is

high, customers as a community produce ‖Personal connections‖ or ―bridging
experiences‖ whereby they relate to meaningful aspects of their own life.
Audience‘s highest level of brand involvement in bridging experiences leads
to personal references or connections with the brand (Greenwald & Leavitt
1984). Studying the effects of message repetition on awareness, recall and
attitude formation about the brand community involvement has found that
repeating different features of an outlet prevent early decay of outlet effects
(Buchholz & Smith 1991).
 61
2.4 CONCEPTUAL DEVELOPMENT OF EXPERIENTIAL
MARKETING OVER THE LAST DECADE

During the early 20s, retailers adopted advanced technologies both in

their physical and online stores to enhance both the store environment (i.e. the
place where the product is bought or consumed), and the shopping experience
(Pantano, 2015). This is especially true for what can be termed ‗consumer-
facing‘ technology; namely technologies and devices that the consumer
experiences directly whilst in the physical or online store, such as interactive
screens, online product visualization and customization, digital signage and so
on. Amongst these technologies, Augmented Reality (AR) and Virtual Reality
(VR) applications are rapidly evolving and increasingly used in retail
environments (Javornik, 2016; McCormick et al., 2014).

AR technique in retailing occurs at various customer touch-points

such as physical, mobile and online (Javornik, 2016; Carmigniani et al., 2011).
Research and applications of AR in retail indicate that it has been regarded to
be facilitating experiential marketing (Bulearca and Tamarjan, 2010). More
recently, whilst Kang‘s (2013) study on the use of AR for apparel e-shopping
identified that consumers‘ utilitarian performance expectancy and other studies
show the impact of AR upon users‘ experience, satisfaction, enhancement of
the perception of reality and overall, a fun, pleasant and personalised
experience to be relevant for users (Poushneh and Vasquez-Parraga, 2017).
People repeatedly turn to the internet to seek pleasure, excitement and
gratification through such activities as playing virtual games, engaging in
social media or streaming music (Wu and Holsapple 2014). The search for
captivating experiences to complement everyday life is very important, and it
appears to be inextricably linked to the shopping experience in brick-and-
mortar stores (Babin and Attaway 2000; Babin, Darden, and Griffin 1994;
 62
Heitmeyer et al. 2012; Colucci and Scarpi 2013). In the days to come,
experiential marketing campaigns would depend upon both VR and AR
experiences which have led to AR app development. In future, in order to be
effective, experiential marketing events need to both thrill the audience live in
person, on site, and enable the consumer or influencer to broadcast to social
media either through "selfies," the capturing and sharing of video or through
the live streaming of video(Elgan, 2017).

2.5 RESEARCH GAP

Review of literature pertaining to experiential marketing shows

that over the years, traditional studies on experiential marketing have been
done through western and empirical lenses and there has been no significant
level of study conducted so far to explore the dimensions of experiential
marketing in emerging economies.

The present study has been undertaken to understand experiential

marketing in the Indian context, and the sector chosen has been the organized
food retail sector. The Indian organized food retail outlets differ from the
organized food retailing offered in the developed economies; hence the present
research would focus on the customers of organized food retail outlets with an
emphasis on the outlets at shopping malls, a relatively unexplored group, yet
one of great importance in developing economies.

Review of literature reveals the studies done on conceptual

development in the areas of ―Experiential Marketing‖, ―Customer
Engagement‖, ―Post Purchase Involvement‖ and a dearth of relationship
studies between these concepts.
 63
The conceptual development related to Experiential Marketing
done by Schmitt (1999), customer engagement by O‘ Brien & Toms (2008)
and Post Purchase dimensions by Vivek et al. (2012) have been taken as the
basis for the present study to test the existence of relationship among
Experiential Marketing, Customer Engagement and Post Purchase
Involvement.

2.6 THEORETICAL FRAMEWORK AND HYPOTHESIS

DEVELOPMENT

Relationship between Experiential Marketing and Customer

Engagement:

Experiential marketing aims at delivering products and services

to customer through an experience. During this process, the customer becomes
emotionally and psychologically connected with the object of the experience
Mathur, D. C. (1971). Sensory and emotional elements with regard to the
shopping experience have greater impact upon the customer preferences
(Zaltman, 2003). In contrast to the conventional marketing techniques adopted
to give customer satisfaction, experiential marketing creates a more
emotionally involved customer (McCole, P., 2004). These arguments lead to
the following hypothesis.

H1: Experiential Marketing has significant influence on customer

engagement

Relationship between customer engagement and post purchase

involvement:
 64
Business entities keep customers loyal by providing memorable
experiences and engaging them through a series of activities (More, 2011).
When a consumer feels a sense of achievement or fulfilment of a hedonic
experience through active involvement, it would prompt his or her desire to
return and continually patronize the retailer (Ghani and Deshpande, 1994). The
earlier statement is reiterated by Wu (2008) to explain ―how successful
businesses create repeat and loyal customers by providing unforgettable
experiences‖. Customer engagement is not treated as an outcome, but rather
as a process that leads to purchase involvement, customer satisfaction and
loyalty (Hudson et al.. 2015). Customer engagement is a predictor of greater
customer involvement and loyalty (Bowden, 2009; Hollebeek, 2011; Patterson
et al.., 2006). The above literature lead to the following hypothesis.

H2: Customer Engagement has significant influence on Post-Purchase

Involvement.

2.7 THEORETICAL MODEL PROPOSED FOR THE STUDY

Based on the discussion and review of the theoretical and

empirical literature, a theoretical model shown in Figure 2.1 is developed,
expressing the relationships among the variables in the study.

S F T A R F P A WO
E N A FI V T M
L BCI
E E E E E A U C

Experiential Customer Post Purchase

Marketing Engagement Involvement

Note: SE – Sense Experience, FE–Feel Experience , TE- Think Experience, AE–Act Experience, RE–Relate Experience.
FA–Focused Attention, PU–Perceived Usability, E–Endurability, N–Novelty, A–Aesthetics, FI–Felt Involvement.
V–Value, T–Trust, AC–Affective Commitment, WOM -Word Of Mouth, L–Loyalty, BCI–Brand Community Involvement.

Figure 2.11 – Conceptual

Figure Conceptual Model
Model of theofStudy
the Study
 65
2.8 HYPOTHESES OF THE STUDY

Based on the theoretical framework the hypotheses tested for this

study are listed below.

Hypotheses H1: Experiential Marketing has significant influence on Customer

Engagement.

Hypotheses H2: Customer-Engagement has significant influence on Post

Purchase Involvement.

The study also envisages to identify the association of

Experiential Marketing, Customer Engagement and Post-Purchase
Involvement, with customer features and the related hypotheses is as follows:

Hypotheses H3: There is a significant difference among Experiential

Marketing, Customer Engagement and Post-Purchase
Involvement in terms of personal profile features of
customers.

H3a : There is a significant difference among Experiential

Marketing, Customer Engagement and Post-Purchase
Involvement in terms of the gender of the customers.

H3b : There is a significant difference among Experiential

Marketing, Customer Engagement and Post-Purchase
Involvement in terms of age of the customers.

H3c : There is a significant difference among Experiential

Marketing, Customer Engagement and Post-Purchase
Involvement in terms of marital status of the
customers.
 66
H3d : There is a significant difference among Experiential
Marketing, Customer Engagement and Post-Purchase
Involvement in terms of educational qualification of
the customers.

H3e : There is a significant difference among Experiential

Marketing, Customer Engagement and Post-Purchase
Involvement in terms of occupational status of the
customers.

Hypotheses H4: There is a significant difference among Experiential

Marketing, Customer Engagement and Post-Purchase
Involvement due to the purchase practices of the customers.

H4a : There is a significant difference among Experiential

Marketing, Customer Engagement and Post-Purchase
Involvement in terms of monthly purchases of the
customers.

H4b : There is a significant difference among Experiential

Marketing, Customer Engagement and Post-Purchase
Involvement in terms of the mode of transportation of
the customers.

H4c : There is a significant difference among Experiential

Marketing, Customer Engagement and Post-Purchase
Involvement in terms of distance from home of the
customers.

Hypotheses H5: Demographic characteristics of the customers have a

moderating effect on the influence of experiential marketing
on post purchase involvement.
 67
H5a : Age group of the customer‘s has a moderating effect on
the influence of experiential marketing on post
purchase involvement.

H5b : Gender of the customer‘s has a moderating effect on the

influence of experiential marketing on post purchase
involvement.

H5c : Income of the customer‘s has a moderating effect on the

influence of experiential marketing on post purchase
involvement.

H5d : Occupation of the customer‘s has a moderating effect

on the influence of experiential marketing on post
purchase involvement.