Experiential aspect of services consumption in Retailing in UK

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Chapter One: Introduction

1.1. Background

According to a study in the country, one in three purchases of appliances, pieces of clothing or furniture have been made through the web (Kim, Kim & Park, 2010). British families already use the Internet to more than 30% of their purchases, said a study on consumption in the country, and the number is growing (Kim, Kim & Park, 2010). The incorporation of experiential aspects in order to advance knowledge of the buying behaviour of consumers occurs in the 80s, at which point one begins to realize the value of emotions as a key element in the process (Palmer, 2010). This approach assumes a postmodern marketing orientation, turning the central character of the surrounding consideration of people as individuals interested in achieving emotional experiences a pleasant and enjoyable consumption. Moreover, a pleasant and unique experience will have a personal depending on the subject and the situation in which it is received (Walls et al., 2011).

1.2. Research Aim

The aim of this research is to analyse the experiential aspect of services consumption in Retailing in UK

1.3. Research Question

Some of the questions that this study will seek to answer are;

  • How do online and offline channels affect the shopping experience?
  • How do consumers use online channels to influence their offline purchases?
  • Do the ‘blended in-store experience’ offer customers the best experience?

1.4. Research Objectives

These questions will be answered through the objectives. The main objectives of this study are;

  • To define service encounters; and customer experiential value;
  • To explain how service encounters influence customer experiential value and, in turn, behavioural intentions.
  • To analyse multi-channel behaviour affects customer service encounter and purchasing behaviour

 

Chapter Two: Literature Review

One in three appliances, pieces of clothing or furniture UK has been bought online, according to an analysis by Xing et al (2010). For the first time, families use the Internet to more than 30% of their purchases, said a study on consumption in the country (Su, 2011). The products that they buy over the Internet British are food, followed by buying shoes, has discovered Retail Consortium British retail. About 34% of shoes bought in November were purchased through the web, an increase over the previous year, when it was 31%. In addition, a quarter of purchases made online clothes, 10% more than in 2013 (Lehner, 2015).

Furniture is the most purchased online, says the Telegraph. According to the data, two thirds of the furniture bought in the UK came through the ‘www’, with a third of the purchased goods (Lehner, 2015). As noted by the British media, this is thanks to the expansion in mobile use and improvements in purchase applications directed to these applications. Half of Britons shop via their tablets on Christmas (You­Ming, 2010).

Another reason for this increase in purchase ‘click through’ is at the height of the collection points, where shoppers can buy through the web and then go directly to a collection point in their purchase (Srinivasan and Srivastava, 2010). Customers have taken the lead in the process of purchasing (Tsiotsou and Ratten, 2010). Themselves seek the product, report their features, compare prices and choose how and where to compare. Therefore, customers can get the product from multiple pathways, and when they finally arrive at the same, 2 out of 3 customers have already come a long way. A journey that could succeed through multiple devices and different information channels; own and other brand (Edwards, McKinnon & Cullinane, 2010).

The latest research shows that rather than seeing digital as a one stop shop, consumers are enjoying an omnichannel shopping experience that blends digital with traditional bricks and mortar retailers to create a new kind of purchase journey (Edwards, McKinnon & Cullinane, 2010).

A significant majority of businesses believe that multichannel customers are as important (47%) or slightly more important (29%) customers a single channel, a view that seems to be shared by the consumers themselves. But a new study from RSR Research has found that, despite the belief of the trades in the value of a multichannel strategy, they have to face many difficulties in the way (Little et al 2010). When asked about the 3 main obstacles in organizations to seize the opportunities of the multichannel, 54% of study participants recognized that lacked a unified view of customers across all channels. The problem does not seem to have diminished. Last year, it was also found at the top of the list of organizational inhibitors, cited by 55% of study participants but there seems to be only the retail industry sufferer. The results of a survey conducted early last year found that only 17% of participants from a diverse set of industries and sectors said they had managed to have a single view of their customers.

Consolidate customer data available on several channels is obviously one of the keys to solve the problem as indicated by the survey results, a potential solution cited by 43% of participants in it. Similarly, according to a recent study by the CMO Council, 57% of marketing executives believe that there are a number of important data, if available of them, would give a more complete and comprehensive view of their customers, while another 30% believe that there may be other data, but are not sure what they are (Little et al 2010) .

Considering the above, as well as the possible interest of businesses to integrate customer data from different channels with a shift towards more brand structure specific channel (Walls et al 2011), cited by 35% of the solution answers might push companies to adopt a mentality single platform. But in particular, when it asked them to study participants to what extent they have rethought as will their sales platforms in the distant future, only 34% believe all platforms will be integrated into a single platform. However, 52% believe that there are some opportunities to converge into a single platform, but it is always necessary to continue with some kind of unique abilities in each channel (Little et al 2010).

in each channel

The companies struggle to develop a multichannel strategy, adapted to user behaviour. Customers demand an integrated strategy through all possible channels, but companies are still going to have trouble trailer and catch up (Wang and Lin 2010). Only 25% of companies considered to have experience in this area, and is prepared to provide good customer experience, according to the report by Forrester Consulting and Silverpop.

When talking about behavioural marketing, 34% of companies said to be working on it, while only 17% has implemented in its strategy. Out of the 157 professionals in the survey, less than half (45%) are collecting data and analysing the behaviour of their customers. Social CRM is not yet integrated in the vast majority of companies, who also have no other way for the sharing of customer data. So far only 20% of companies have a multichannel marketing strategy, although 39% said that is developing it. If the trend holds, in the coming months

The companies struggle to develop a multichannel strategy, adapted to user behaviour. Customers demand an integrated strategy through all possible channels, but companies are still going to have trouble trailer and catch up. Only 25% of companies considered to have experience in this area, and is prepared to provide good customer experience, according to the report by Forrester Consulting and Silverpop.

34% of companies said to be working on it, while only 17% has implemented in its strategy, aspects of behavioural marketing. Of the 157 professionals in the survey, less than half (45%) are collecting data and analysing the behaviour of their customers. Social CRM is not yet integrated in the vast majority of companies, who also have no other way for the sharing of customer data.

So far only 20% of companies have a multichannel marketing strategy, although 39% said that is developing it. If the trend holds, in the coming months we will see great progress in this area.

Chapter Three: Methodology

The qualitative research is based on a type of deductive thinking, which goes from the general to the particular, using the collection and analysis of data to answer research questions and test hypotheses previously established. It hopes numerical measurement, counting and often use statistics to pinpoint patterns of behaviour in a population. For the purpose of this research primary data will be gathered using survey questionnaire. The research will be in line with the main objective which is to look into experiential aspect of services consumption in Retailing in UK. The quantitative methodology will be used to gather and analyse information regarding the research aim to achieve research objectives by analysing the literature review. The survey will be conducted using survey monkey and the participants will be recruited from social media platforms. There is no specific strategy or aspects for selection criteria. Anyone can participate in the survey that has access to internet. The survey link will be posted on various online retail pages on Facebook and other social networking sites. The survey will consist of MCQs that will be in alliance to the main research aim and objectives. The data will be analysed using SPSS software.

Chapter Four: Projected Results

The literature that has been reviewed above and the facts obtained from the previous research it is expected that UK consumers are more inclined towards having a blended experience of shopping. The internet has taken the lives of majority of individuals and people find it easier to shop online. There is no doubt that the increase in online shopping has increased tremendously as it has been mentioned above with facts in a research conducted by Xing et al (2010), however in order to present a solid statement regarding the impact of online shopping on offline retail shopping in UK is yet to presented which will be discovered through this research. It is also noted that there is a connection between three variables when it comes to online shopping, these are: purchasing behaviour, service encounter and experiential value. Thus these three variables will be focused in more depth throughout the research as the data will be gathered from real online shoppers and the responses received will help present some factual data on the correlation of these three variables with online shopping consumption in UK.

References

Edwards, J. B., McKinnon, A. C., & Cullinane, S. L. (2010). Comparative analysis of the carbon footprints of conventional and online retailing: A “last mile” perspective. International Journal of Physical Distribution & Logistics Management, 40(1/2), 103-123.

Little, C. L., Rawal, N., de Pinna, E., & McLauchlin, J. (2010). Survey of Salmonella contamination of edible nut kernels on retail sale in the UK. Food microbiology, 27(1), 171-174.

Lehner, M. (2015). Translating sustainability: the role of the retail store.International Journal of Retail & Distribution Management, 43(4/5).

Kim, J. U., Kim, W. J., & Park, S. C. (2010). Consumer perceptions on web advertisements and motivation factors to purchase in the online shopping.Computers in human behavior, 26(5), 1208-1222.

Palmer, A. (2010). “Customer experience management: a critical review of an emerging idea”. Journal of Services Marketing, 24 (3); pp 196–208.

Srinivasan, S.R. and Srivastava, R. K. (2010). “Creating the futuristic retail experience through experiential marketing: Is it possible? An exploratory study”. Journal of Retail and Leisure Property. Vol. 9. Nº 3, pp

193–199. Su, C­S. (2011). “The role of service innovation and customer experience in ethnic restaurants”. The Service Industries Journal, 31 (3); pp 425­440.

Tsiotsou, R. and Ratten, V. (2010). “Future research directions in tourism marketing”. Marketing Intelligence and Planning, 28 (4); pp 533­544.

Walls,  A.R;  Okumus,  F;  Wang,  Y.R.  and  Wuk.  D.J.  (2011).  “An  epistemological  view  of  consumer experiences”. International Journal of Hospitality Management, 30; pp 10­21.

Wang, C­Y. and Lin C­H. (2010). “A study of the effect of TV drama on relationships among tourists experiential  marketing,  experiential  value  and  satisfaction”. International  Journal  of  Organizational Innovation, 2 (3); pp 107­123.

Xing, Y., Grant, D. B., McKinnon, A. C., & Fernie, J. (2010). Physical distribution service quality in online retailing. International Journal of Physical Distribution & Logistics Management, 40(5), 415-432.

You­Ming, C. (2010). “Study of the impacts of experiential marketing and customers satisfaction based on relationship quality”. International Journal of Organizational Innovation, 3 (1); pp 189­209.

Organizational Innovation

Table 1: Online Shopping Rate in UK Dec 2014

Table 2: Preliminary Research of Sources

The following keywords and journals will be used for search of sources

Keywords Journals
Online consumer behaviour Journal of Retailing and Consumer Services
Online purchasing in UK Online information review
Multichannel customer Journal of Interactive Marketing
Service encounter Service business
Experiential value Online information review
Electronic commerce Journal of Retailing and Consumer Services

 

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