Co-creating brands: Diagnosing and designing the relationship experience

The traditional goods-dominant logic of marketing is under challenge and leading researchers are now emphasizing the new service-dominant logic [Vargo, S.L., Lusch, R.F., Evolving to a new dominant logic for marketing. J Mark 2004; 68 (1): 1-17.]. One of the key foundational propositions of this logic is the customer as “always being a co-creator of value” where “the brand becomes the experience” [Prahalad, C.K., The co-creation of value. J Mark 2004; 68 (1): 23.]. In this paper, the authors examine the concept of brand relationship experience in the context of co-creation and service-dominant logic and outline a conceptual model for designing and managing the customer experience. Case study research illustrates how this model helps in the design and management of the brand relationship experience for an innovative new product.     

Cognitive and affective constituents of the consumption experience in retail service settings: effects on store loyalty

Based largely on the recently growing experiential marketing stream, this study explores the joint effects of cognitive assessments of and emotional responses to service experiences on store loyalty in a retail service setting. Experience-related cognitions and store-related cognitions based on evaluations of the service experience, as well as the subsequent positive and negative emotional responses on the part of the customers, are modeled and investigated in terms of effects on store loyalty. Empirical data were collected through a survey of 518 consumers in four coffee shops of two major chains. The results suggest that consumer evaluations of the service experience and store environment may influence store loyalty, both directly and indirectly, through both negative and positive emotional arousals. The relative effects of each construct through different mechanisms are the primary research questions investigated in this study. Managerial implications and future research directions are also discussed.     

Individual and contextual influences on the affective commitment of retail salespeople

Abstract

Salesperson characteristics as well as managerial approaches have been found to play an important role in the development of positive attitudes by salespersons towards an organisation. This study integrates these two research areas to investigate the personal and contextual antecedents of affective organisational commitment of retail salespeople. Fit theory and the literature on person–situation interaction provide the theoretical bases for explaining how salesperson selling skills, job liking, and empowerment individually and jointly influence affective commitment. A multilevel modelling approach is used to analyse data from 105 sales managers and 419 salespeople. Findings reveal that salespersons' affective commitment is influenced by their selling skills, degree of job liking, tenure, and empowerment. The results also indicate that the impact of selling skills on affective commitment is higher when empowerment is high. Based on the study's findings, implications for managing salespeople as well as limitations and suggestions for future research are offered.     

Using transformational appeals to enhance the retail experience

Transformational appeals hold enormous promise for retailers. These appeals go beyond providing concrete, factual data to making the consumer's actual experience more enjoyable. A field study and a controlled, follow-up experiment are conducted to empirically assess the efficacy of transformational appeals compared to informational appeals in retail settings. Results suggest that transformational advertising affects consumers’ initial retail experiences, but are not effective when a consumption experience is already well defined. Further, transformational appeals enhance hedonic and symbolic benefits but do not appear to affect evaluations of functional benefits. The underlying processes guiding these effects and implications for marketing theory and practice are discussed.     

Co-creating value for luxury brands

The global market for luxury brands has witnessed dramatic growth over the last two decades but the current challenging economic environment contributes to the difficulty brand owners experience in ensuring that customers perceive sufficient value in their luxury brands to compensate for the high prices. According to recent service-oriented research, customers and suppliers co-create value as a result of a shift from a firm- and product-centric view of value creation to one that focuses on personalized brand experiences. In this paper, the authors develop a theoretical framework of types of value for luxury brands, and use case study research to identify processes of value creation in this particular setting. The findings highlight the variety of interactions taking place between luxury brand owners, their customers and members of their respective networks, which help to differentiate luxury brands and co-create a superior value proposition.     

The customer retail app experience: Implications for customer loyalty

Retailer mobile applications are one of the principal retail purchase and information search channels. Customer experience is key to retail app success. However, its dimensions and impact on retailer performance have been the subject of only a limited number of studies. This research builds on existing customer retail app experience literature by considering four dimensions as precursors of satisfaction with the retailers’ app and customer loyalty (cognitive, affective, relational and sensorial). Data were collected from a sample of 545 retailer app users and analysed using PLS-SEM. The results demonstrate that the affective dimension has the most influence and they highlight the importance of the sensory experience, which even surpasses the cognitive experience. The effect of the relational dimension on customer satisfaction, meanwhile, could not be positively confirmed. Analysis of the moderating effect of gender, age and device type used identifies effects that have not, until now, been demonstrated in current literature.     

The social significance of AI in retail on customer experience and shopping practices

This paper draws on practice-informed, ethnographic research to develop an understanding of the novel social consequences and opportunities afforded from consumers' interactions with AI digital humans as part of the in-store shopping experience. We reveal and interrogate consumers’ experiences with AI digital humans in an exploratory study undertaken during the launch phase of an in-store kiosk digital store greeter in a flagship store of a large national technology and appliance chain. Our findings contribute to understanding the social significance of AI in retail on customer experience (CX) and the managerial implications of consumers interactions with AI digital humans are described and discussed.     

Perceptions of others,mindfulness, and brand experience in retail service setting

This study examines how the presence of other customers in a retail service environment influences an individual’s service brand experience (SBE). Previous research indicates individuals perceive other customers based on their similarity, overall physical appearance and behavior. Findings from this study show this perception of other customers (OCP) will influence an individual’s service brand experience. At the same time, a person’s state of mindfulness mediates the relationship between OCP and SBE and the resulting SBE has a positive influence on word-of-mouth. The results extend existing theory, present a number of managerial implications and provide a basis for further research.     

Generation Y employees' retail work experience: The mediating effect of job characteristics

This research examines Generation Y employees' retail work experience. Based upon Brown and Peterson's [Brown SP, Peterson RA, Antecedents and consequences of salesperson job satisfaction: meta-analysis and assessment of causal effects. J Mark Res 1993; 30: 63-77; Brown SP, Peterson RA, The effect of effort on sales performance and job satisfaction. J Mark 1994; 58: 70-80.] job satisfaction model, Gen Y employees work experience framework encompasses the work environment variables of role conflict, role ambiguity, supervisory support, and work involvement to predict job performance, job satisfaction, and, ultimately, retail career intention. Drawing from the job crafting perspective in management theory [Wrzesniewski and Dutton, 2001], this research tests the mediating effect of job characteristics between work environment and job outcomes using structural equation modeling. Study participants were members of a national sample of students (n = 803) from 14 universities in the United States. The findings indicate that job characteristics have a critical mediating role on the relationships for Gen Y employees, suggesting a paradigm shift from passive to active employees who craft their jobs, roles, and selves within a retail organizational context.     

How consumers as aesthetic subjects co-create the aesthetic experience of the retail environment

The consumer aesthetic experience, diverse and complex, seems to depend on the individual׳s subjective perception. Studies have questioned if this experience can be conceptualized and explained through underlying patterns. Most studies have focused on the properties of aesthetic objects, explaining their influences on consumer responses, while ignoring consumers as aesthetic subjects. Based on the view that consumers seek pleasure out of even the most mundane objects in their everyday consumption, this study explains how consumers interact and formulate aesthetic experiences in the retail environment.     

Co-creating stakeholder and brand identities: Introduction to the special section

This article introduces the special section on reciprocal co-creation of stakeholder and brand identities. Branding research and practice traditionally focus on the managerial creation and implementation of brand identity. Based on recent paradigmatic shifts from managerial to co-creative branding and from consumer to multi-stakeholder approaches in marketing, this special section develops a dynamic, process-oriented perspective on brand identity. Brand identity continuously emerges as a dynamic outcome of social processes of stakeholder interaction. Reciprocally, brand identity plays a potentially important role in ongoing interactive identity development processes of stakeholders. The special section contributes to deepening the understanding of this reciprocal co-creation of stakeholder and brand identities, through a series of conceptual and empirical articles. The Introduction reviews four articles as well as related commentaries and discusses their contributions towards establishing a new dynamic paradigm of co-created and reciprocal brand and stakeholder identities.     

Online retail experience and customer satisfaction: the mediating role of last mile delivery

ABSTRACT

For various industries worldwide, recent years have been defined by the remarkable growth of e-commerce. Enabled by the Internet, retailers can reach more customers, spread much further in the distribution chain, and optimize their resources. In the new market environment, customer experience has become a source of competitive advantage. This study investigates the role of last mile delivery in the customer’s e-retail experience. A quantitative methodology was used, which incorporated a survey that was conducted in Sweden and measured participants’ most recent e-retail experience. The results indicate that the last mile delivery experience mediates the relationship between the customer’s perception of the online shopping experience and customer satisfaction. These conclusions provide ground for further thorough investigations of the role of last mile delivery in the e-retail context and support e-retailers in increasing their customers’ satisfaction.     

Learning in retail entry

Retailers may face uncertainty about the profitability of local markets, which provide opportunities for learning when making entry decisions. To quantify these informational benefits, I develop an empirical framework for studying dynamic retail entry with uncertainty and learning (from others). Using novel data about fast food chains, I estimate the model with a forward simulation estimation approach augmented with particle filtering as a way to flexibly account for unobserved firm beliefs about market profitability. The estimates confirm the presence of uncertainty and learning. Most importantly, simulations using the estimated model demonstrate that learning from others may indeed help mitigate some of the uncertainty.     

Orchestrating retail in small cities

The structural transformation of retail is challenging for many small cities. Rather than seeing the retailer as a sole player, this article considers retail in small cities to be shaped in a retail eco system consisting of many different actors besides retailers such as municipalities, landlords, business/city organisations, customers/citizens. The key contribution of the article is to provide new perspectives on the challenges and management of retail in small cities by applying a metaphor from the culture and fine arts sector, orchestration. The article is based on a combination of in-depth interviews and participant observation at three small cities in Sweden. In total, 38 interviews have been conducted with representatives of retailers, municipality, business/city associations and landlords.The general aspects of retail eco system as an orchestra are presented according to Klein and Kozlowski, (2000) multilevel constructs: compiled (bottom-up), composite (top-down) and emergent (culture, history). Thereafter, a number of orchestration techniques, structured around Pine and Gilmore, 1999 dimensions of experiences are presented. The article shows that the future of retailing in small cities is not merely dependent on the retailers, but on collaborations with other retailers, landlords and municipalities. An understanding of consumer culture and development of entrepreneurship culture and networks is crucial for survival and prosperity. Furthermore, rather than copying strategies developed both in and for metropolitan areas, there is a need to build on and strengthen the characteristics of the local retail eco system and the community brand identity.     

Dual agency in retail chains

Abstract

Retail distribution is often organized into chain stores, where geographically dispersed units operate under a common trademark and operational routines. Franchising is an organizational form chosen by entrepreneurs to manage retail chains. Previous research has maintained that franchising is a solution to “the” agency problem. This article shows how franchising solves one agency problem, shirking, but creates another, free riding, giving rise to dual agency problems. We test which has a stronger effect on performance. Using stochastic frontier estimation, a technique from empirical economics, we show that marketing spending yields less sales for franchised chains relative to owned chains, suggesting that the loss associated with free riding dominates the gain from controlling shirking. Implications for theory and practice are discussed.     

Sustainability drivers in food retail

Sustainability has become a relevant issue for retailers. We develop an integrated model with three drivers of retailer's investments in sustainability. First, the more their processes, human resources and customer driven capabilities are developed, the more investments in sustainability tend to occur. Second, retailers leverage their relationships with suppliers to invest in sustainability. Third, competition and economic instability may also lead to long run investments in social and environmental. We tested three hypotheses by surveying 101 retailers operating supermarkets, hypermarkets and neighborhood stores that focus mainly on food with a limited offering of general merchandise and apparel. Our results show the importance of customer driven capabilities for investments in sustainability. Communication with the supplier also has an impact on investments, while the process and policies of the supplier relationship do not. Retailers invest in sustainability to coordinate this relationship. Our study sheds light on the drivers for sustainability and offers an understanding of how a retailer may invest further in sustainability.     

Toward a new business model of retail industry: The role of brand experience and brand authenticity

While the customer-to-manufacturer (C2M) business model has received increasing attention as a new business model for e-commerce and retail industry, little is still known about it and the effect of its approach. This study aims to understand how brand-related stimuli in C2M environments affect customer responses as the worldwide COVID-19 pandemic. The outcomes reveal that the Sensory, affective, and intellectual aspects of brand experience positively influence brand authenticity. Brand authenticity has a positive effect on behavioral intention, such as reuse intention and word-of-mouth. Additionally, this research finds that social presence moderates the association between the sensory aspect of brand experience. Thus, this study can suggest a C2M business model as a means of sustainable operation of the retail industry to both researchers and practitioners in relation to the retail industry.     

Manufacturer-owned retail stores

Increasingly, manufacturers sell their products in their own retail stores, and many of these stores appear to be in direct competition with independent retailers; i.e., both types of retail stores are physically co-located. We analyze one way this practice affects the retail market. We find that, when independent retailers compete against company stores (instead of just against other independent retailers), they (1) charge higher prices and (2) are more willing to engage in marketing efforts on behalf of the manufacturer’s brand. Furthermore, when company stores and independent retailers compete in the same market, the company store charges higher prices and provides more marketing effort. Anecdotal data are consistent with these model predictions.

Parameter nonstationarity in retail choice models

The question of spatial nonstationarity in retail choice models generally has been ignored in the literature. This paper discusses why such nonstationarity might arise and presents an empirical test of nonstationarity in grocery choice data collected from a midwestern city. Based on these findings a nonstationarity retail choice model is proposed. The nonstationary model predicts data from a hold-out sample better than the stationary model.     

Customer engagement in the context of retail mobile apps: A contingency model integrating spatial presence experience and its drivers

This study develops and investigates the mechanisms through which retail mobile-app cognitions—i.e., interactivity and vividness—are translated into spatial presence experience and subsequently result in customer engagement under the parasol of the hierarchy-of-effects model and the situated cognition theory. The contingency roles of need for cognition and domain-specific interest as individual intrinsic tendencies and issue-specific motivations, respectively, are also scrutinized. A dataset obtained from a survey of 558 customers is employed to estimate the proposed research model. The results indicate that interactivity and vividness significantly stimulate the spatial presence experience, i.e., feelings of “being there” in the mobile-app environment; in turn, this drives customers to become more engaged and contribute to retailers that provide such experiences. The moderating roles of the two motivations are also identified.