Luận án tốt nghiệp: how sensory marketing affects customer experience

Luận án tốt nghiệp chuyên ngành marketing kinh doanh quốc tế. How sensory marketitng affects customer experience. AbstractIn the present time, customer choose products service not only through its functionality but also through they have more expectation on the experience they have. Therefore, sensory marketing is the necessary strategy that business should consider creating great experience that can stand out from the competitive market. The research chooses The Married Beans Coffee Concept Company to see how the company have utilized sensorial strategies. Therefore, the aim of this research is to figure out how sensory marketing affects on customer experience then come up to the suggestion on how to optimize marketing strategies of the company. This thesis adopted qualitative research methodology. Semistructured indepth interview with the sample size of 10 people was applied to collect data for the research. The interview aims at gaining more insight about the Married Beans sensory marketing strategy and how customer experience is changed from the point of view of customers and marketing manager. Overall, the study has given an overview understanding of sensory marking, customer experience touchpoints. In addition, the research also studies how sensory marketing affects customer experience.

Yen Phan (1704317- IBKV17SP) HOW SENSORY MARKETING AFFECTS CONSUMER EXPERIENCE Bachelor’s thesis International Business 2020 Author (authors) Degree title Time Yen Phan Bachelor of May 2020 First name Surname International Business How sensory marketing affects customer experience Case: The Married Beans – Coffee Concept Company 47 pages pages of appendices Commissioned by The Married Beans – Coffee Concept Company Supervisor Harrison Okuogume Abstract In the present time, customer choose products & service not only through its functionality but also through they have more expectation on the experience they have Therefore, sensory marketing is the necessary strategy that business should consider creating great experience that can stand out from the competitive market The research chooses The Married Beans Coffee Concept Company to see how the company have utilized sensorial strategies Therefore, the aim of this research is to figure out how sensory marketing affects on customer experience then come up to the suggestion on how to optimize marketing strategies of the company This thesis adopted qualitative research methodology Semi-structured in-depth interview with the sample size of 10 people was applied to collect data for the research The interview aims at gaining more insight about the Married Beans sensory marketing strategy and how customer experience is changed from the point of view of customers and marketing manager Overall, the study has given an overview understanding of sensory marking, customer experience & touchpoints In addition, the research also studies how sensory marketing affects customer experience Keywords Thesis, sensory marketing CONTENTS INTRODUCTION Background Research problem, aims & objectives & research questions: Research Methodology Structure of thesis SENSORY MARKETING Sensory marketing Customer experience, customer journey, customer touch points 13 HOW SENSORY MARKETING AFFECTS CUSTOMER EXPERIENCE DURING CUSTOMER JOURNEY 18 METHODOLOGY 25 Research method 25 Data collection 26 Data analysis 27 Interview Result: 28 RECOMMENDATION FOR THE MARRIED BEANS 37 CONCLUSION 38 REFERENCES 40 LIST OF FIGURES APPENDICES INTRODUCTION Background In the past, business focuses on developing and improving the quality, utility and functionality of products These are the unique elements to outperform from their competitors However, with the non-stop changing and highly demanding of the customer, the elements above are not the only elements to make the final decision, customers in the modern day are also seeking for good experience, feeling and emotion excited during the whole purchasing process Hence, businesses start utilizing sensory marketing to enrich customer experience with products or services By using senses in marketing, businesses are able to effectively convince customers and differentiate from their competitors Although the term sensory marketing has been increasingly known by businesses and researchers, there are still insufficient researches, evidences to study about how it can be applied and modify customer experience Therefore, this thesis hopes to raise more concern on this phenomenon and expectantly it can be useful resources for future referencing From managerial perspective, this study can possibly be a good referencing for The Married Beans Coffee Concept Company and businesses to experiment and figure out how to deliver appropriate technologies that can combine human senses to deliver customer better experiences Since sensory marketing is still a new phenomenon for firms, not many businesses using this marketing methods or their strategies only limit to few senses, for instance, auditory or virtual The case company is The Married Beans Coffee Concept which is a start-up company that aims at producing the highest quality Arabica green beans and roasted beans in market To make customers understand and have fully experience of the whole coffee making process, The Married Beans establish the whole ecosystem where there is combination of roastery factory, showroom of coffee sampling and product tasting in front of the bar From personal point of view, having been working as a marketing intern in this company, I was impressed by the way they created interactive and engaged experience by using five senses without even consciously knowing about them Therefore, I believe these experiences will be useful and practical materials for me to research about this topic I will have the opportunity to acquire new knowledge on human senses in marketing and customer experience in every aspect, so I could examine gain more insight in my own behavior and the environment surrounding Consequently, it would be an asset for me in my future career to consider when creating a marketing strategy considering sensory attributes Research problem, aims & objectives & research questions: As sensory marketing is just recently emerging in marketing, there are still insufficient information about what it really is and how it executes in business The lack of references and instruction about this topic would be a challenging and problematic for businesses to get access to right information For instance, it was mentioned before, even The Married Beans Company didn’t notice about the effect and their utilization of this method Therefore, this research aims at introducing about sensory marketing and figure out how it affects customer experience As a result, it could be a suggestion for company to integrate and apply for their marketing strategies to foster their marketing performance The main research question is: How sensory marketing affects customer experience? In addition to support the main research question, these sub-questions will also be discussed to meet the goal of thesis: – What is sensory marketing? – What is consumer experience during customer journey? What are customer touch points? The objectives of this research are: – To understand the definition of sensory marketing, customer experience, touchpoints and customer journey – To research about how sensory marketing affects customer experience – Give suggestion for The Married Beans company about how they could integrate and improve their marketing strategy Research Methodology According to research aims and objective, the study is more about discovering new phenomena than testing or justifying a fact This means it would be more appropriate to gather data that is descriptive, non-numerical, word or text In this case, qualitative methodology is more suitable for the orientation of this study to reach the aims of the study As this approach tries to understand and gain insight on human experience in certain situation, context and criteria to know why and what is the meaning behind the behavior (Taylor 2013, 139) In this study, in-depth interview is used as a qualitative method to collect data and information, so it helps to gain insight explanation and descriptive information about how customer experience is affected by sensory marketing during their customer journey It allows interviewees to express their own emotion, thought and feeling from their perspective, which can lead to new and diverse insight for the phenomenon (Kuada 2012, 94) Moreover, in-depth interview will be a chance to receive a wealth and rich information to dive deep in the problem as it is flexible and there is no limitation in words or time The interviews are semi-structured, which interviewer doesn’t have to strictly follow ordered lists of questions Instead, can ask open-ended questions to guide the conversation in a mora natural and comfortable flow The interviewees chosen are those who are familiar with the business and have great knowledge about company marketing strategy Interviewees will be sent invitations in advance; the main idea of the interview will be mentioned so they can have a well-prepared interview Structure of thesis Introduction • Introduce the back ground of the research, problems and objectives of research • Define research methodology and limitation Theoretical Framework • Explain theoretical concepts of sensory marketing and customer experience and touch points • Define the influence of sensory on customer experience Practial Research In conclusion • Look into the case company • Collect data and analyze • Conclude findings and propose possible solutions • Summarize the research and recommend for futher study Figure 1: Structure of Thesis SENSORY MARKETING Sensory marketing Sensory marketing is marketing approach that appeals customer through senses to make immediate influence on their behavior and subconscious react (Krisha 2009, 2-6) It creates new sense or strengthen the effect of the previous sense to customer experience and indeed help to develop brands’ sensory signatures To be more specific, businesses use sight, hearing, touch, taste and smell to communicate with customers, which helps to offer sensorial experience that trigger senses in customer’s mind and brain (Erenko & AK 2015, 1-2) Additionally, senses organ is stimulated through marketing, in which these sensations will establish customer’s perception and behavior To sum up, sensory marketing uses experiential marketing techniques to bring individuals different experiences through interactivity, tangible or intangible objects, multidimensional and digital technology These strategies not only connect with logical, rational but also emotional values to successfully influence customer while purchasing (Lindstrom 2005, 107-109, Sharafat 2019, 35) The prominent aim of sensory marketing is to strengthen the emotional depth on customers’ experiences (intangible attributes) towards the tangible characteristics, features of products (Esmailpour & Zakipour 2016, 5-7) These intangible attributes like experiences, emotions are crucial influence on making buying decision, as functional attributes of a product and services are now not sufficient conditions to reach a purchasing decision (Schmitt & Simonson 1997, 39-41) Additionally, reported by Hulten et al (2009, 2) sensory marketing is the solution for new marketing challenges, which help to bring optimistic experiences through human five senses, attract customers before, during and after purchasing products or services Furthermore, it creates memorable values that help to address company’s identity and reaches the goal of increasing brand awareness, recognition from customer’s mind (Sb.) Lastly, it is also claimed that sensorial marketing strategies foster the bond of customers with the brand, it brings effects on purchasing behavior by allowing emotional sensation to influence on our rational thinking (Lindstrom 2005, 106) 10 Figure 2: Sensory marketing (Hulten et al 2009, 6) Figure shows that through sensorial strategies and customer treatment (customer service) it will establish the brand awareness and perception for the sensory experience that customers engage in Moreover, this sensory experience should base on customer five human senses, so it can bring personal experience where each individual can have different and distinctive response and feeling from their senses As a result, these experiences will be the factors that make the brand stand out The importance of senses in marketing 100 90 80 70 60 50 40 30 20 10 Taste Sight Smell Sound Figure 3: The importance of senses in marketing (Lindstrom 2005, 69) Touch 34 the coffee beans to ensure and check the quality of the beans Figure 11: Harvesting Coffee Moreover, when brewing coffee, depending on the method of making coffee such as expresso, pour-over or syphon, after grinding coffee the barista will let the customer to check the grind size of coffee If will help them to know and understand how grind size will affect the flavour of the coffee And by understanding more about drinks, they can fully enjoy the flavours combining all of their senses 35 Figure 12: Coffee Grind Size Touchpoints The Married Beans focus on main touchpoints which are exterior and interior design, coffee bar and product’s placement shelves Exterior & interior which are decorated with comfortable but aesthetic furniture to create pleasant, enjoyable and restful atmosphere Coffee bar which is always kept as clean & organized as possible to convince customers about the quality of products Moreover, coffee bar is also the main touch point to affect on customer experience as this is where they interact with barista and witness the whole process of making coffee The purpose of showing the coffee bar is to persuade customers & when barista directly communicate with customers, it would be one way to get customers buy more & have a memorable time at The Married Beans Customer experience Nine customers were interviewed to understand deeply about their experience they have when visiting and receiving the services at The Married Beans These are the result after analysing the data collected from customers Emotion 36 Figure 13: The Married Bean Coffee Concept – Work Space Customers mostly were appealed by the interior and exterior of the shop, the space is an open-working space so most of them feel comfortable & inspiring to work and enjoy coffee here Some of the visitors are attracted by the decoration of the workshop space, so they come to take pictures, but it starts to become their favourite place to relax & work Ambient music is also one of the reasons why the customers want to visit the Married Beans again as it makes them feel the sense of arousal, satisfaction & pleasant In addition, as they have the chance to directly see and participate in the whole process of making coffee, several of them feel motivated & inspiring as they have the chance to learn & update knowledge about coffee As a result, there were people who even developed passion about coffee industry, some of them started to seriously want to have an occupation related to this industry In conclusion, the experience at the Married Beans makes customer want to revisit the place and when they want to drink coffee, The Married Beans is their first choice that comes to mind Behaviour 37 Most of them reviewed that they have good sensorial experience at The Married Beans, which influences the customer behaviour and intention Firstly, they are amazed by the visual of the place & drinks, which is pleasing to their eyes So, it triggers them to have a try at the drink & make decision to buy more Secondly, as they have the chance to join & witness the whole process of making coffee, in which they can touch, smell and taste coffee in advance, so it makes them trust in the quality of the products and fully enjoy their drinks It evokes their emotion & fulfil their desire, therefore, they start to affect the preference when choosing a place to drink coffee Thirdly, the place creates comfortable atmosphere for customers to relax and enjoy, they begin to have emotional connection with the coffee shop which makes them become the loyal customer to the brand Perception Customer perceive The Married Beans is the place where not only can they taste good quality coffee, but they can also enjoy other activities about coffee rather than just drinking They conclude that their perception and thinking about coffee has been changed thanks to fully sensory experience and they could understand the meaning behind every cup of coffee Most of them are willing to re-visit to spend time at The Married Beans and using the products and enjoy the service here RECOMMENDATION FOR THE MARRIED BEANS The suggestions below aim at providing The Married Beans company some recommendation for improve and execute their marketing strategies successfully As the Married Beans has been done their job well in triggering customer sense in the most emotional ways, which leads to the closer connection towards the brans However, most of these experience & reactions can only happens when the customers visit the coffee shop or directly experience the service of the company So, this leads to limitations for those who live in a far location can involve in the whole experience Therefore, my suggestion for The Married Beans is that they should explore more on social media marketing to communicate with customers and to spread the visuality of the brand to larger number of customers For example, they can tell the story behind the brand through video, content, 38 image to get more customer engage from online channels Sharing photos of upcoming products or organizing minigame to give away sample of new products are also a good way for customer to get awareness of the brands Moreover, word-of-mouth marketing should be employed more to get more potential customer by encouraging customers to give feedback and review, so more the users might gain trust and willing to try the products and service here CONCLUSION The aim of this research is to explore about how sensory marketing affects on customer experience to suggest some recommendation for The Married Beans – Coffee Concept to improve their marketing strategies Qualitative methods were used to collect data from the customers, for instance, 10 interviews with marketing manager and customers had allowed me to make conclusion to the questions that have been raised from the beginning of the research Sensory Marketing Sensory marketing is marketing strategies to communicate with customers through five senses: sight, smell, touch, taste, sound The company can combine different senses for their strategies to receive the most effective result Through sensory marketing customer doesn’t evaluate the products through rational thinking such as evaluating function, efficiency, cost of the products But they are affected on emotional & unconscious level, as it is proved from the research below, these are the factors that have more influence on customers than rational thinking Customer experience Customer experience is the reaction, response or the impression of the customers during the process of consuming products or after using the products or service Customer experience is different from each customer as the products can affect them on different level In short, it is the result of every time when customer interact with the brands Therefore, it is important to make sure customer receive fulfilled experience, it will increase the chance of customer re- 39 visit the place or become loyal customers of the brands Customer experience includes any thing that comes to customer such as thinking, perception, emotion in every touchpoint within the customer experience from hearing about the brands to leaving the store How sensory marketing effects on customer experience Customers can be affected on their emotion, behavior and perception by applying sensory marketing When applying the right sensorial strategies not only does it improve and triggers customer mood, emotion but it also motivates and change the perception about the brands If the experience brings them the positive and satisfied memories, chances are that they will have great perception and evaluation about the brands, in which helps them to make purchasing decision easier Reliability & Validity To conduct a credible and trustworthy research, which can be applied for the practical issue, the research must be written with reliability and validity aspects This will prevent the research from receiving the wrong or impractical findings (Saunders et al 2009, 156 -158) Validity in qualitative is to ensure the research findings are valid and appropriate, which can support and answer the research questions Validity addresses on the right methods, tools, process to lead to the desired result It answers the concern if the research question is valid to produce possible findings, whether the right methods are employed to extract the necessary data to support the research On the other hand, reliability refers to the issue with the result findings still remains correct and consistent after several times of testing in the future In other words, it means that if the research using the same methods, it still produces similar & comparable outcome, then it’s reliable Limitations There are two main limitations of the research Firstly, it is the lack of literature review, so it is hardly to gain deep insight of some concepts Secondly, the 40 sample size is quite small, therefore it will lack of the insight information and diverse data from the interview Future research suggestions How to engage customer by apply sensory marketing strategies? How to create successful sensory marketing? 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Suong Le – What are your marketing strategies for the company? – Do you know about the term “Sensory Marketing”? – Does your company implement sensory marketing in the strategy? – Which senses are implemented? How does it implement in customer journey? – How is sight marketing applied? In which touch points during customer journey? – How is sound marketing applied? In which touch points during customer journey? – How is touch marketing applied? In which touch points during customer journey? – How is taste marketing applied? In which touch points during customer journey? – How is smell marketing applied? In which touch points during customer journey? – What are the results? – Is the customer experience improved? What are the changes? – How does sensory marketing affect on their business performance? – What are the improvements for their marketing strategies that they want to change? customers - Do they notice the sensory cues? - How does it affect their experience? - Does sensory cues triggers customers in different levels: emotion, behavior, perception? - What sensory stimuli they most notice? - What type of sensory marketing they think is the most crucial? - What is their overall overview and evaluation about the Married Beans? - Do they think that sensory cues is the importing factors that improve their experience? - Do they have any suggestion for the Married Beans to improve? ... SENSORY MARKETING Sensory marketing Customer experience, customer journey, customer touch points 13 HOW SENSORY MARKETING AFFECTS CUSTOMER EXPERIENCE DURING CUSTOMER. .. understanding of sensory marking, customer experience & touchpoints In addition, the research also studies how sensory marketing affects customer experience Keywords Thesis, sensory marketing CONTENTS INTRODUCTION... maintain relationship with customers (Robert & Stephen 2006, 236-240) HOW SENSORY MARKETING AFFECTS CUSTOMER EXPERIENCE DURING CUSTOMER JOURNEY Company brings multi -sensory experiences by combining