The dimensions of customer experience and the effect of customers' channel choice on customer experience

Sujin Oh, Purdue University

Abstract

In recent years, an understanding of how to effectively manage customer experience has become an important topic for both academicians and practitioners. In essence, how to manage customers' experiences at every business contact point is a critical element for increasing the likelihood of a firm's success. The rapidly transforming, multichannel operation of the contemporary retail environment offers a wide spectrum of retail experiences from which consumers can choose. In order to provide seamless experiences for customers and build customer loyalty, firms must also be aware of the channels that customers use that affect the customer experience. The purposes of this study are: (1) to investigate dimensions of customer experience, and (2) to examine the critical components of consumers' experiences of a particular channel choice (online, offline, or multichannel), to investigate the customer experience's impact on the formation of shopping channel loyalty intentions, and determine the relationship between channel choice drivers and certain channel choices. In order to achieve the goals of identifying the underlying structure of customer experience, the present study proposed and empirically tested two competing models: an extended version of Mathwick, Malhotra, and Rigdon (2001)'s hierarchical second order customer experience model and a second structure order of customer experience model. To this end, a total of 344 usable samples were obtained from two sampling methods: an offline and an online survey. A convenience sample of college students who have purchased any electronics over past 6 months was recruited for this study. Confirmatory Factor Analysis results supported a model of hierarchical second order customer experience. This hierarchical second order factor structure of customer experience was judged to be better for evaluating customer experiences than the second structure order model that has frequently been used in customer value studies. The results of Structural Equation Modeling showed different roles for each customer experience (hedonic and utilitarian) in relation to customers' general experiences and behavior (repurchase) intentions. Multi-group analysis results for the proposed model suggested that online, offline and multichannel customers do not differ among latent variables used in this study. The results of Chi-square test, ANOVA, and Multinomial Logistic Regression showed the differences of relationships between customer channel choice (online, offline, and multichannel) and some drivers of channel choice. This study contributes to the issue of customer experience management in multichannel marketing by exploring experience dimensions and impact factors when consumers move from one stage of buying to the next. Building on recent insights into the drivers of channel choice and experience measures, it also gives a rationale for differences in channel choice by relating consumers' experiences to the channels' capabilities of addressing them.

Degree

Ph.D.

Advisors

Yilmazer, Purdue University.

Subject Area

Marketing|Management

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