Exploring the Effects of Servicescape, Brand Image, and Experiential Marketing on Customer Satisfaction.

Hao-Te Lu #, Man-Chun Lien *

# Tainan University of Technology*National Sun Yat-Sen University

Address#tj0003@mail.tut.edu.tw

*manman1228@hotmail.com

Abstract— This research discusses about the correlation of brand image, servicescape and experiential marketing with customer satisfaction through customer’s impression on enterprise brand image, customer is in-store servicescape and participates in experiential process. Additionally the research uses experiential marketing as intermediate variable to study the influence of servicescape and brand image on customer satisfaction and takes famous chain coffee shops in Kaohsiung and Tainan as research target. Research results indicate that servicescape, brand image and experiential marketing present significant positive influence on customer satisfaction. Furthermore experiential marketing is possessed of partially intermediate effect. Research results can serve as an important reference of internal environmental display and consumer experience for chain service industry.

Keywords—Servicescape, Brand image, Experiential marketing, Customer satisfaction

I. INTRODUCTION

The research aims to study 1. the correlation between “servicescape” and customer satisfaction”; 2. the correlation

between “brand image” and “customer satisfaction”; 3. the

correlation between “ experiential marketing” and “customer

satisfaction”; 4. the intermediate relation of experiential

marketing between “servicescape” and “customer

satisfaction”; 5. the intermediate relation of experiential

marketing between brand image and customer satisfaction. Additionally this research uses chain service industry-Dountes as research target and provides the industry with summary of research results to serve as reference for its future operation.

II. LITERATURE REVIEW

A. Customer satisfaction Cardozo (1965) was the first person to introduce customer

satisfaction to the marketing science. He conducted the research and verification on customer satisfaction, then he thought that consumer would compare with prior expectation after consumption experience. If consumer thought the performance did not achieve the expectation, he would lead to dissatisfaction. However if he felt satisfied, he was willing to repeat purchase or even purchase the other product or service. In other words, consumer satisfaction will affect the

subsequent buying behavior and cognitive evaluation. Consumer purchases the product through personal experience, how he/she feels about product will reflect the discrepancy between expectation and actual product performance. The discrepancy is used to directly evaluate the overall perception of enterprise that consumer will compare its prior expectation and actual product/service performance and lead to satisfaction or dissatisfaction (Oliver, 1980; Fornell, 1992).

B. Servicescape and satisfaction In terms of servicescape, Kotler (1973) defined physical

environment that provides customer with cuing and creates animmediate perceived impression. Kotler also made up the term atmosphere that presents more influential than other products in the purchase decision. Berry and Clark (1986) thought that physical environment can provide customer with cues to evaluate that service or quality prior to purchase. Later Bitner (1992) proposed the term servicescape to refer the physical surroundings when people are engaged in service offering to customer. The servicescape is made up of tangible and intangible features, including ambient conditions, spatial layout and functionality, signs, symbols, and artifacts.

C. Brand image and satisfaction Brand not only indicates a name or a sign, but also brings

the quality commitment to consumer and provides trust and guarantee for the enterprises (Kotler, Leong, & Tan, 1999; Pettis, 1997). According to different brands’ information, Park, Jaworski, and Maclnnis (1986) divided the brand image into functional, symbolic and experiential types. They also considered the brand image to be a communication motion between enterprises and consumers through different marketing activities so that consumers produce perceived influence on that brand via brand related activities and further form a subjective and perceived concept on that brand.

D. Experiential marketing and satisfaction Schmitt (1999) formally brought up the term experiential

marketing: “through observation or participation in event, the

individual customer is stimulated to generate motivation,

2014 International Symposium on Computer, Consumer and Control

978-1-4799-5277-9/14 $31.00 © 2014 IEEE

DOI 10.1109/IS3C.2014.179

669

produce conceptual recognition or consuming behavior and enhance product value”. However Petrick, Morais, and

Norman (2001) thought if enterprises could create a better experience for customer and will certainly bring customer a higher satisfaction. In other words, customer satisfaction will be affected by experience of services or products offered by enterprises.

E. Experiential marketing intermediate effect Joy and Sherry (2003) indicated that experience, coming

from participating in personally and going through, is only the apprehension of an object or emotion through the senses or mind. However many researchers rarely regard experiential marketing as intermediate effect. Baron and Kenny (1986) defined mediator must meet the following conditions: (1) independent variable must predict outcome variable; (2) independent variable is able to predict mediator; (3) mediator must predict outcome variable.

III. METHODOLOGY

A. Research framework Based on above literature review, the research framework

includes 1. the correlation between “servicescape” and

“customer satisfaction”; 2. the correlation between “brand

image” and “customer satisfaction”; 3. the correlation between

“experiential marketing” and “customer satisfaction”; 4. the

intermediate relation of experiential marketing between brand image and customer satisfaction.

B. Variable operational definition and measurement and questionnaire design

a. Servicescape

The section uses servicescape model developed by Bitner (1992) and refers to the basis of Ya-wen Hsu (2007) to mainly develop through ambient conditions, spatial layout and functionality, signs, symbols and artifacts. There are totally 10 questions.

b. Brand image

The part uses functional, symbolic and experiential brand, developed by Park et al. (1986) to design 9 questions.

c. Experiential marketing

This section is focused on strategic experiential modules, developed by Schmitt (1999), including sense, feel, think, act and relate, letting customers generate unique experience. There are 15 questions.

d. Customer satisfaction

This part is based on research of Cronin, Brady, and Hult (2000) and refers to ”The Study of Coffee Industry and

Customer Consuming Behavior” by Wei-cheng Chen (2011). In total, there are five questions.

C. Data collecting method

The article adopts proportionate stratified random sampling to send out 380 copies of questionnaire to the consumers in the Donutes stores in Kaohsiung and Tainan from December 2012 to the end of January 2013.

IV. RESEARCH ANALYSIS AND HYPOTHESIS TEST

A. Reliability analysis Cronbach’s α of variables are servicescape 0.72, brand

image 0.79, experiential marketing 0.76 and customer satisfaction 0.72 respectively. Cronbach’s α is above 0.7,

indicating that excellent reliability is existed among variables.

B. Factor analysis, reliability analysis and validity analysisBased on factor analysis, the research conducts variable

extraction. If questions are below two, the variable should be deleted and carries out the reliability analysis of new variables. The finally obtained variables include environmental factor and moving line and sign dimensions of servicescape, sensory and subjective dimensions of brand image, act, relate and feel experience dimensions of experiential marketing as well as overall customer satisfaction dimension of customer satisfaction. Additionally the variables are equipped with convergent validity and discriminant validity.

C. Pearson correlation analysisPearson correlation analysis and average variance

extracted (AVE) indicate that all variable dimensions present significant correlation with customer satisfaction. Among which emotional experience in the experiential marketing shows significant negative correlation that will discussed in the conclusions.

D. Re-establish framework and hypothesisThe article uses factor analysis to extract new variables,

re-establish the research framework and re-adjust the hypothesis, shown in Figure 1:

Figure 1 Research Framework (after Factor Analysis)

E. Regression analysisRegression analysis confirms hypothesis 1 and 2 to be

completely valid, while hypothesis 3 to 7 is partially valid. Thus regression analysis verifies servicescape, brand image

Servicescape1. Environmental

factor2. Moving line and

signs

Brand image1. Sensory factor

2. Subjective factor

Experiential marketing1. Act and

relate2. Feel

Overallcustomer

satisfactio

H1

H2

H3

H4

H5

H6H7

DirectIntermediate

670

and experiential marketing to present significant positive influence on customer satisfaction. The results conform to previous domestic and foreign researches (such as Chun-chang Lee, 2008; Pao-nuan Hsieh, 1997; Kirmani & Zeithmal, 1993; Petrick et al., 2001; Reimer & Kuehn, 2005), indicating that servicescape, brand image and experiential marketing truly affect the perception and satisfaction of consumer on stores.

.DISCUSSIONS AND SUGGESTIONS

A. Research discussion

a. Relation of servicescape, brand image and experiential marketing on customer satisfaction.

Research results indicate that only feel experience in the experiential marketing shows significant negative influence on customer satisfaction, the rest presents significant positive influence on customer satisfaction, indicating that the store has good space, layout, decoration and display, its brand image is higher. Furthermore the store carries out excellent experiential marketing, the customer will feel satisfied as well, if not, the customer will feel dissatisfied. In other words, servicescape, brand image and experiential marketing of Donutes will affect the overall satisfaction of customer on Donutes. Thus servicescape, brand image and experiential marketing are the basis for customer to evaluate Donutes that is consistent to the results of previous literatures. Donutes owners can enhance the creation of servicescape and atmosphere, maintain excellent brand image and bring consuming perception to customer through different practical experience to increase overall customer satisfaction.

b. Experiential marketing intermediate effect

Regression analysis results show that “act and relate”

experiences in the experiential marketing will produce partially intermediate effect on environmental factor of servicescape as well as sensory and subjective factors of brand image, indicating that customer satisfaction with Donutes partially comes from “act and relate” experiences, is not completely, directly affected by servicescape and brand image. In other words, customer in Donutes servicescape produces satisfaction to affect experiential marketing. Then experiential marketing gives customer practical experience and further influences customer satisfaction. Additionally invalid hypothesis indicates that customer satisfaction with Donutes won’t be affected by feel experience. Instead influence of

servicescape and brand image affects customer satisfaction. Experiential marketing is therefore not equipped with intermediate influence on customer satisfaction.

B. Research suggestions a. Practical part

Servicescape will directly influence consumer satisfaction. The article suggests that Donutes owners should create a satisfactory service environment for customer. Due to bad dining experience, Donutes owners are suggested to enhance

the inspection of product hygiene, make the manufacturing process to be safe and hygiene and reinforce the sterilization and inspection of environment to give consumer a safety guarantee and maintain its own brand image as well. Research results also indicate that advertising is significantly insufficient. The owners are suggested to enhance the advertising, such as magazine publication, website marketing, etc. or participation in event marketing or activity sponsoring, increase of brand awareness. Practical experience facilitates consumer to realize the concept that brand intends to convey.

b. Theoretical part 1. Research results show that intermediate effect

hypothesis of experiential marketing is not valid for the most part, indicating that other variables are possibly existed to serve as intermediate effect. The article suggests that subsequent researches can carry out discussion on different variables.

2. Sample selection, since Donutes set up many stores island wide, the research sample uses consumers at Donutes in Tainan and Kaohsiung as research target. Sample selection is thus not evenly. Subsequent researches can increase customers in the different counties and cities so that number of sample is equipped with representativeness. Subsequent researches can also discuss about difference of culture and consuming ability among Northern, Central and Southern Taiwan that possibly leads to different results.

3. The research adopts SPSS to conduct quantitative research. Subsequent researchers are suggested to conduct the interview with store owners or use SEM linear regression equation to conduct intermediate effect discussion so that questions in the questionnaire and research results will become more complete.

4. Currently there is no standard scale for chain coffee stores. As such, the research refers to measurement scales of servicescape, brand image, experiential marketing and customer satisfaction proposed by previous scholars to conduct the measurement on the characteristics of coffee industry. The process requires tremendous effort, yet performance and result are not always satisfactory. Bias of research results could be possibly occurred. Subsequent researchers are suggested to focus on the study of standard scale for chain coffee store that will certainly benefit the industry.

REFERENCES[1] C. C. Lee, “The Study of Media Information, Searching Cost and

Brand Image on Customer’s Willingness to Entrust Real Estate Agent”,Commerce & Management Quarterly, 10(2), 365-394. 2008

[2] Y. W. Hsu, “The Study of Service Environment on Customer Perception-Taking Resort Hotel at Kenting as Example”, Unpublished thesis of Graduate Institute of Hospitality Management, National Kaohsiung University of Hospitality and Tourism. 2007

[3] W. C. Chen, “The Study on Service of Coffee Industry and Customer Behavior Intention-Taking Young Generation in the Northern”, Central and Southern Taiwan as Example, unpublished thesis of Department of Statistics, National Cheng Kung University. 2011.

[4] P. N. Hsieh, “Managing the Physical Environment in Libraries: a Service Encounter Approach”, University Library Journal, 1 (4), 31-51.1997..

671

[5] Berry, L., & Clark, T. “Four ways to make services more tangible,”Business, 36(4), 53-55. 1986.

[6] Bitner, M. J. “Servicescapes: The impact of physical surrounding on

customer and employees”. Journal of Marketing, 56(2), 57-71. 1992.[7] Cardozo, R. N. “An experimental study of customer effort, expectation

and satisfaction,” Journal of Marketing Research, 2(3), 244-249. 1965.[8] Cronin, J. J., Brady, M. K. & Hult, G. T. “Assessing the effects of

quality, Value and customer satisfaction on consumer behaviouralintentions in service environment,” Journal of Retailing, 76(2), 193-218. 2000.

[9] Fornell, C. “A national customer satisfaction barometer: The Swedish

experience,” Journal of Marketing, 56(1), 6-21. 1992. [10] Joy, A., & Sherry J. F. “Speaking of art as embodied imagination: A

multisensory approach to understanding aesthetic experience,” Journal of Consumer Research, 30(2), 259-282. 2003.

[11] Kirmani, A. & Ziethaml, V. A. “Advertising, perceived quality, and brand image,” In D.A. Aaker & A. L. Biel (Ed.), Brand Equity and Advertising, Lawrence Erlbaum Associates, Inc. 1993.

[12] Kotler, P. “Atmospherics as a Marketing Tool,” Journal of Retailing,49(4), 48-65. 1973.

[13] Kotler, P., Leong, S. H., & Tan, E. T, “Marketing management - An Asia perspection,” New Jersey: Prentice-Hall, International, Inc.1999.

[14] Oliver, R. L, “A Cognitive Model of the Antecedents and Consequences of Satisfaction Decisions,” Journal of Marketing Research, 17(4), 460-469.1980.

[15] Park, C. W., Joworski, B. J., & MachInnis D. J., “Strategic Brand

Concept - Image Management,” Journal of Marketing, 50(4), 135-145.1986.

[16] Pettis, C. “Challenge: Try branding unix,” Marketing Computers, 17(4), 68-70.1997.

[17] Petrick, J. F., Morais, D. D., & Norman, W. C., “An examination of the determinants of entertainment vacationers’ intentions to revisit.”

Journal of Travel Research, 40(10), 41-48.2001.[18] Reimer, A., & Kuehn, R., “The impact of servicescape on quality

perception.” European Journal of Marketing, 38 (7/8), 785-808.2005.[19] Schmitt, B. H., Experiential marketing. Journal of Marketing

Management, 15(1-3), 53-67.1999.

672