CONSUMER EXPERIENCE

AND EXPERIENTIAL
MARKETING
 EXPERIENTIAL MARKETING

• In a book titled “Experiential Marketing,” Schmitt (1999) contrasted

traditional marketing’s product-oriented focus on functional features and
benefits with experience marketing’s customer-oriented focus on
experiences.
• He argued that customers do not only engage in rational choice, but are
just as frequently driven by emotions.
• Experience marketing is usually broadly defined as any form of
customer-focused marketing activity that creates a connection to
customers.
 CONSUMER BEHAVIOUR AND EXPERIENCES

• Pine and Gilmore (1999) refer to experiences as events that

engage individuals in a personal way.
• “The Customer Experience originates from a set of
interactions between a customer and a product, a company,
or part of its organization, which provoke a reaction.
• This experience is strictly personal and implies the
customer’s involvement at different levels (rational,
emotional, sensorial, physical and spiritual.
• Its evaluation depends on the comparison between a
customer’s expectations and the stimuli coming from the
interaction with the company and its offering in correspondence
of the different moments of contact or touch-points.”
• Experiences, especially those tied to brands, are distinct
from brand associations and brand image (Keller, 1993).
• Consumers associate brands with benefits, products, people,
places, and many other objects as part of an associative
network (Keller, 2003).
 GENTILE ET AL. (2007) ‘S SIX EXPERIENTIAL
COMPONENTS

 Sensorial (sight, hearing, touch, taste, and smell experiences and how they arouse
aesthetic pleasure, excitement, satisfaction and a sense of beauty)
 Emotional (moods, feelings, and emotional experiences that create an affective relation
with the company, its brands and products)
 Cognitive (experiences related to thinking and conscious mental processes to get
customers to use their creativity or problem solving so that they revise assumptions
about a product)
 Pragmatic (experiences resulting from the practical act of doing something and
usability)
 Lifestyle (experiences resulting from the affirmation of values and personal beliefs)
 Relational (experiences, emerging from social contexts and relationships, that occur
during common consumption as part of a real or imagined community or to affirm
social identity)
 EXPERIENCE ENGAGEMENT MODEL-
EXPERIENCE TOUCHPOINTS

Lasalle and Britton (2002) have presented an experience engagement model consisting of five
stages.

 Discover (i.e., the consumer identifies products and services to meet specific wants and needs)
 Evaluate (i.e., the consumer examines the possible choices identified, compares them and,
using various decision and choice rules, narrows them down to a preferred choice)
 Acquire (i.e., the consumer expands money and time to shop for and buy the product)
 Integrate (i.e., the consumer integrates the purchase into his or her daily life, e.g., by using
services around the product)
 Extend (i.e., the continuing relationship and bonds a consumer makes with a brand)
Davis and Longoria (2003) present a “brand touchpoint wheel” including
prepurchase, purchase, and postpurchase experience phases, and have
identified such touchpoints within each phase.

• Pre-purchase touchpoints include advertising, public relations, web sites,

new media, direct mail/samples, coupons and incentives, deals and
promotions.

• Purchase touchpoints include packaging, point-of-purchase displays, store

and shelf placements, salespeople and sales environments.

• Post-purchase touchpoints include product and package performance,

customer service, newsletters, and loyalty programs.
 TYPES OF CONSUMER
EXPERIENCES--

• Positive Consumer Experience: This is the ideal outcome for businesses. It occurs when a customer's interaction
with a product, service, or brand leaves them satisfied and happy. Positive experiences often lead to customer
loyalty and positive word-of-mouth.
• Negative Consumer Experience: Conversely, a negative experience occurs when a customer is dissatisfied with a
product, service, or brand. Negative experiences can result in lost customers and damage to a company's reputation.
• Convenience Experience: Convenience is a significant factor for many consumers. A convenience experience
involves making it as easy as possible for the customer to find, purchase, and use a product or service. Examples
include fast-food drive-thrus and one-click online shopping.
• Luxury Experience: Luxury experiences are associated with high-end brands and premium products or services.
They often emphasize exclusivity, exceptional quality, and personalized service.
• Self-Service Experience: Some consumers prefer self-service experiences, where they can access and use a product
or service independently without the need for assistance. Examples include self-checkout kiosks and online booking
systems.
• Engagement Experience: Engagement experiences focus on creating emotional connections with customers. This
can involve storytelling, interactive marketing campaigns, and community-building efforts.
• Virtual Experience: With the rise of technology, virtual experiences have become increasingly common. These
include online shopping, virtual events, and digital entertainment platforms.
 TYPES OF CONSUMER
EXPERIENCES-

• In-Person Experience: In some cases, customers prefer physical, in-person experiences. This could be dining in a restaurant,
attending a live concert, or visiting a retail store. The atmosphere and interactions with staff play a significant role in these
experiences.
• Educational Experience: Some products or services aim to educate customers. This could be through user manuals, tutorials, or
workshops. Educational experiences help customers maximize the value of what they've purchased.
• Sensory Experience: Sensory experiences engage one or more of the five senses (sight, sound, touch, taste, and smell). For
example, a bakery may offer the sensory experience of smelling freshly baked bread, while a movie theater provides a visual and
auditory sensory experience.
• Customized/Personalized Experience: Tailoring products or services to individual preferences and needs creates a customized or
personalized experience. This can involve personalized recommendations, customized products, or individualized customer support.
• Problem Resolution Experience: When customers encounter issues with a product or service, their experience is shaped by how
well and how quickly those problems are resolved. Effective problem resolution can turn a negative experience into a positive one.
• Social Experience: Some experiences are inherently social. This can include dining out with friends, attending social events, or
using social media platforms to connect with others.
• Environmental/Sustainability Experience: An increasing number of consumers prioritize environmentally friendly and
sustainable products and services. Businesses that align with these values offer an environmental or sustainability experience.
• Trial Experience: In some cases, consumers may want to try a product or service before committing to a purchase. Free trials,
samples, and demo versions of products provide this type of experience.
 CX AND BUYING BEHAVIOR

• Customer Experience (CX) plays a significant role in shaping buying behavior. The way consumers
perceive and interact with a brand can influence their purchase decisions and long-term loyalty. Here's how
CX impacts buying behavior:
• Brand Loyalty: Positive CX fosters brand loyalty. When customers have consistently good experiences
with a brand, they are more likely to choose that brand over competitors when making future purchasing
decisions. Loyal customers often become brand advocates, recommending the brand to others.
• Repeat Purchases: A satisfying CX encourages repeat purchases. Consumers are more inclined to buy
from a brand they trust and have had positive experiences with in the past. Brands with strong CX strategies
can rely on repeat business from satisfied customers.
• Customer Retention: CX is closely tied to customer retention. Brands that prioritize customer satisfaction
and provide excellent post-purchase support are more likely to retain customers over the long term. This
reduces the need to acquire new customers continuously.
• Word-of-Mouth Marketing: Positive CX can lead to positive word-of-mouth marketing. Customers who
have had exceptional experiences are more likely to share their experiences with friends and family, both in
person and through social media. This can influence the buying behavior of others.
• Online Reviews and Ratings: Online reviews and ratings are essential factors in buying behavior. A brand
with a strong track record of positive customer experiences is likely to have higher ratings and better
reviews. Consumers often consider these reviews when making purchase decisions.
• Differentiation: CX can be a significant differentiator in a competitive market. When consumers
have similar choices in terms of products or services, the quality of their experience with a brand
can be the deciding factor. Brands that offer a superior CX can stand out in a crowded marketplace.
• Reduced Price Sensitivity: Customers who have a strong emotional connection with a brand due
to positive CX are often less price-sensitive. They may be willing to pay a premium for products or
services from a brand they trust, even if lower-priced alternatives are available.
• Cross-Selling and Upselling: Brands that understand their customers' needs and preferences
through CX data can effectively cross-sell and upsell related products or services. This can increase
the average transaction value and boost revenue.
• Cart Abandonment Reduction: A smooth and user-friendly online shopping experience can
reduce cart abandonment rates. An intuitive and hassle-free checkout process, along with
transparent shipping and return policies, can encourage consumers to complete their purchases.
• Emotional Connection: CX often creates emotional connections with customers. Brands that
evoke positive emotions through their interactions, whether through exceptional customer service
or memorable experiences, are more likely to have customers who feel a personal connection to the
brand.