International Journal of Business and Management; Vol. 10, No. 1; 2015ISSN 1833-3850 E-ISSN 1833-8119Published by Canadian Center of Science and Education104Customer Satisfaction and Loyalty in an Online Shop: An ExperientialMarketing PerspectiveMei-Ying Wu1 & Li-Hsia Tseng11 Department of Information Management, Chung-Hua University, Hsinchu, TaiwanCorrespondence: Mei-Ying Wu, Department of Information Management, Chung-Hua University, No.707,Sec.2, WuFu Road, Hsinchu 30012, Taiwan. R.O.C. E-mail: email@example.com
Received: August 19, 2014doi:10.5539/ijbm.v10n1p104
Accepted: November 17, 2014
Online Published: December 20, 2014
AbstractThe rapid development of the Internet has facilitated the proliferation of online stores. How businesses can seizethis enormous business opportunity and survive intense competition is an important issue. Based on strategicexperiential modules (SEMs), including sense, feel, think, act, and relate, this study attempted to explore the typeof experience preferred by consumers of lativ, a well-known low-cost apparel brand in Taiwan, and furtherexamine the relationship between customer satisfaction and loyalty. Results showed that perceptions ofexperiential marketing differed significantly on some demographic variable; experiential marketing waspositively related to customer satisfaction and customer loyalty; customer satisfaction and customer loyalty werepositively related; and experiential marketing was a significant predictor of customer satisfaction and customerloyalty. The empirical results about experiential marketing were obtained from the online apparel retail industry.Keywords: strategic experiential modules, experiential marketing, customer satisfaction, customer loyalty1. IntroductionWith the rapid development of online stores, the competition from brick-and-mortar stores has also escalated,putting much pressure on the online retail industry. The rise of the Internet offers consumers an alternativeshopping channel, through which they can obtain sufficient information, have a plenty of similar items to choosefrom, visit many virtual stores in a snapshot, place orders and make payments easily, and buy whatever they everneed at home. Online shopping caters to the busy lifestyle of modern people, and its prevalence manifests therise of the stay-at-home economy. In nowadays, one will be greeted by countless ad banners of online apparelbrands when accessing a portal site. In e-commerce, apparel is a category characterized by a lower entry barrierbut a higher profit rate. The inventory and retail procedures for this product category are also easier compared toother product categories. As a result, many businesses open an online apparel store as their first step of enteringthe e-commerce market.This study focused on lativ and obtained data from consumers who had purchased any item from the online storeof lativ. Based on the five strategic experiential modules (SEMs) proposed by Schmitt (1999), this studyattempted to explore the type of experience that is most favored by consumers of lativ and examine therelationship between customer satisfaction and customer loyalty. The results could be a reference for onlineapparel retailers not limited to lativ.1.1 Introduction to LativApparel is one of the best-selling categories in e-commerce. In recent years, lativ, a new brand of low-costapparel sold primarily on the Internet, has gained much popularity in the market. “Lativ” is an abbreviation of“Life should be attractive in various way”. It is a Taiwanese brand of low-cost apparel established in 2007. Itsfounder, Chang Wei-chiang, created the first original online apparel brand in Taiwan without prior experience inrelated businesses. This brand is known for its low-cost but high-quality leisure wear and has an annual revenuereaching NT$4 billion. Chang has convinced all of us with a miracle he created in the apparel industry. Itsproducts cover women’s wear, men’s wear, and children’s wear, and are sold through a business-to-customer(B2C) online store. The goal of lativ is to provide high-quality wear at affordable prices. With the promotion ofkeyword advertising and successful online marketing strategies, lativ became popular in a short time and alsowww.ccsenet.org/ijbm International Journal of Business and Management Vol. 10, No. 1; 2015105delivered a skyrocketing sales performance. Lativ is positioned as a brand of low-cost apparel, so its wearproducts are designed to be simple and non-flasy while offering comfort and functions. Lativ uses certain basicelements to highlight personal characteristics of its consumers. Its high popularity in the online apparel retailmarket is mainly attributed to the effective marketing strategies used. Many scholars have noticed the success oflativ and attempted to explore factors contributing to its success from various perspectives. However, none ofthem has addressed this issue from the experiential marketing perspective. This study is driven to fill this gap.1.2 Experiential MarketingThe brand marketing guru, Professor Bernd Schmitt, was the first to introduce the concept of experientialmarketing. Viewing experiential marketing as an extension of traditional marketing, he integrated variousmethods, concepts, and media used in products and marketing campaigns that involve or appeal to consumerexperiences to propose the concept of experiential marketing. He stressed that the ultimate goal of experientialmarketing is to create holistic experiences for customers and defined experiential marketing as a process ortechnique of promoting a product and increasing its value by offering customers an opportunity to observe orparticipate in events or activities where they may be motivated to buy or agree with the concept behind theproduct. Experiential marketing is to create an unique experience for customers and induce their purchaseintentions by getting them to sense, feel, think, act, and relate. The focus of experiential marketing is oncustomers. In Experiential Marketing, Schmitt (1999) integrated the concept of traditional marketing into hisview of experiential marketing and proposed a framework of experiential marketing that can be used forcustomer experience management based on theories about individual consumer psychology and social behavior.The conceptual framework of experiential marketing consists of two elements: Strategic ExperientialModules (SEMs) and Experience Providers (ExPros). The purpose of SEMs is to create effective forms ofexperiences for customers, allowing them to have a unique encounter with the product, facility or service that isbeing promoted. SEMs refers to five forms of experiences, including sense, feel, think, act, and relate.ExPros are strategic tools of marketing. They include communications, product presence, co-branding,spatial environments, websites, and people. These strategic tools are helpful for businesses to create apleasant experience for customers, increase product values, and enhance customer satisfaction andloyalty. According to Schmitt (1999), we define experiential marketing as “a process of creating an experientialcontext where consumers are allowed to sense, feel, think, act, and relate to the product promoted and have apleasant memory about this experience, resulting in increased product awareness and product value”.1.3 Customer SatisfactionFornell (1992) stated that customer satisfaction is an accumulated and experience-based attitude. Customersatisfaction is a feeling that can be directly evaluated. It is the result of customers’ comparison between theexpected and actual performance of a product or service. Known as the Father of Modern Marketing, Kotler(1996) pointed out that customer satisfaction is a function of the difference between the perceived performanceand expectation. Therefore, customer satisfaction is the level of delight or disappointment deriving from thecomparison between perceptions of the characteristics or performances of a product and personal anticipations.Kotler (1999) also suggested that the level pleasure with a product is a result of comparison between perceivedperformances and individual expectations. Pine and Gilmore (1998) mentioned in The Experience Economy thatcustomer satisfaction is evaluated based on customers’ experience with the product and depends largely oncustomer’s evaluation of individual experiences with the product relative to expectations of its quality. Oliver(1999) argued that customer satisfaction is the degree to which customers’ expectations of a product or serviceare fulfilled and can reflect the consistency between the anticipated and actual performances of the product orservice. According to Schmitt (1999), higher customer value leads to higher customer satisfaction. Wei (2002)provided a simple approach to increasing customer satisfaction. It is to identify the needs of customers andsatisfy them. In other words, it is to understand customers’ expectations of a company, product or its employees,manage to meet the expectations earlier than competitors, and improve weaknesses through constant evaluationsfrom customers’ perspective to win customers’ trust and lifetime loyalty. Assaf et al. (2011) mentioned thatunderstanding how to satisfy customers is critical to transformation of available information into effectivemarketing strategies and future development of the organization. Higher customer satisfaction can result in ahigher organizational revenue. To sum up, despite the variety of definitions of customer satisfaction, scholarsgenerally agreed that customer satisfaction is related to the difference between anticipated and actualperformances, and customer satisfaction is crucial to corporate profits. In this study, we define customersatisfaction as “the result of consumer evaluation based on pre-purchase expectations and post-purchaseexperiences”.www.ccsenet.org/ijbm International Journal of Business and Management Vol. 10, No. 1; 20151061.4 Customer Loyalty“Loyalty” is an old idea in business and marketing dating back to at least the 1940s. Brown (1952) was the firstscholar who empirically studied loyalty in customer. Focusing more on customer behavior, Brown (1952)associated customer loyalty with the repeat purchase behavior of customers. According to Dick and Basu (1994),customer loyalty plays a pivotal role in creating profits, and it can be viewed as the strength of the relationshipbetween an individual’s relative attitude and their repeat patronage. Jones and Sasser (1995) identified two typesof customer loyalty: long-term loyalty and short-term loyalty. Long-term loyalty is true loyalty, with whichcustomers are not easily influenced by external factors to change their view about a product or service.Short-term loyalty, as literally suggests, may easily vanish when customers find or are given a better choice.Frederick (1996) argued that creating customer value is the fundamental approach to corporate success. This isbecause increased customer value leads to higher loyalty, and loyalty in turn can lead to higher growth, profits,and customer value. According to Oliver (1997), loyalty is “a deeply held commitment to buy or repatronize apreferred product or service consistently in the future, despite situational influences and marketing efforts havingthe potential to cause switching behavior”. Chen (2008) mentioned that loyalty exists when customers feelsatisfied with a product and have intentions to repurchase and spread positive word-of-mouth about the product.Lin (2011) viewed customer loyalty as a commitment to use, repurchase, cross-purchase or recommend productsor services of a particular brand. Based on the above definitions, we define customer loyalty as the “degree towhich consumers feel satisfied with a website, product or service and show their support for it in attitudinal,behavioral, and the general aspects”. Based on measurements used by previous research, we will measurecustomer loyalty in three aspects, including the attitudinal, behavioral, and the general aspect.In this study, we used an online apparel store as an example to examine (1) differences in perception ofexperiential marketing, customer satisfaction, and customer satisfaction across demographic variables, (2) therelationship among experiential marketing, customer satisfaction, and customer loyalty, and (3) applicability ofexperiential marketing in the online retailing industry.2. MethodIn this study, we attempt to investigate customer satisfaction and customer loyalty in the online store oflativ using the five SEMs proposed by Schmitt (1999). The research framework is illustrated in Figure 1.
Demographic variablesGenderAgeMarital statusNumber of kidsRegion of residenceEducation degreeOccupationMonthly incomeNumber of hours online
Experientialmarketing1. Sense2. Feel3. Think4. Act5. Relate
Customer loyaltyH2H3Figure 1. Research framework2.1 Operational Definitions of VariablesThe research framework consists of four dimensions, namely demographic variables, experiential marketing,customer satisfaction, and customer loyalty. The operational definitions of variables in each dimension areexplained as follows:(1) Demographic variables: As listed in Figure 1, these variables are the various basic variables ofconsumers.(2) Experiential marketing: According to Schmitt (1999), experiential marketing is to promote a product usingsense, feel, think, act, and relate modules in a way that can create a pleasant memory in consumers and furtherlead to higher product awareness and value. The five variables of experiential marketing are respectively definedin Table 1.www.ccsenet.org/ijbm International Journal of Business and Management Vol. 10, No. 1; 2015107(3) Customer satisfaction: Oliver (1999) stated that customer satisfaction is the degree to which customerexpectations of a product or service are fulfilled and is a reflection of the congruence between expectations andperformances. For our research context, we define customer satisfaction as “the result of evaluation based onpre-purchase expectations and post-purchase experiences with lativ products” (Fornell, 1992; Oliver, 1999;Cheng, 2000; Kotler, 2003; Sung, 2008; Lin, 2009; Lin, 2011).(4) Customer loyalty: Bowen and Chen (2001) defined customer loyalty as loyalty in attitude and behaviortoward a product, and suggested that loyalty can be more accurately predicted using a composite approach thatintegrates the attitudinal approach and the behavioral approach. In this study, we define customer loyalty as “thedegree of support that consumers show for lativ in the attitudinal, behavioral, and the general aspects based ontheir experiences with the website, product, and services of lativ” (Oliver, 1997; Bowen and Chen, 2001; Shih,2008; Teng, 2009; Lin, 2011).Table 1. The operational definitions of the five SEMsVariable Operational definition ReferencesSense Allow consumers to obtain pleasure and a sense of satisfactionfrom their sensory experiences with the website, products, andservices of lativ.Schmitt (1999), Oliver(1997), Chu and Lee (2007),Lin (2008), Shih (2008)Feel Induce the moods and emotions of consumers to further affecttheir affection toward lativ.Think Inspire consumers to have creative thinking and reevaluate thewebsite, products, and services of lativ.Act Create consumer behavior, lifestyle, and interactions with others.Relate Create connections between consumers and other users of thebrand to build their preferences for the brand.2.2 HypothesesIn a research of the effect of experiential marketing on online communities of a bookstore, Wang (2005) foundthat consumer perception of experiential marketing differed on some demographic variables. Yeh (2006)investigated the relationship among experiential marketing, experiential value, customer satisfaction, andcustomer loyalty among users of Taipei City Beitou Sports Center. Her finding indicated that perception ofexperiential marketing, experiential value, overall customer satisfaction, and overall customer loyalty all differedsignificantly by income level and education degree. Lin (2008) investigated the effect of experiential marketingin hybrid bookstores and found significant differences between age groups. Lin (2011) explored the relationshipamong experiential marketing, customer satisfaction, and customer loyalty among consumers of protective sportsgear in Taipei. The evidence showed differences in perception of experiential marketing across consumercharacteristics. Cheng (2012) investigated the same relationship among consumers of Häagen-Dazs, aninternational brand of ice cream. Significant differences in all dimensions were found between different groupson demographic variables. Based on the above literature, we propose the following hypotheses:H1: Perception of experiential marketing differs significantly by demographic variables.Mano and Oliver (1993) found a positive relationship between experiential marketing and satisfaction. Jarrett etal. (1996) mentioned in a report on a British hospital hotel that improving the style and comfort of sick rooms inthe hospital hotel could change patients’ stereotypical impression about hospitals and increase the length of stayof non-critically ill patients in the hospital hotel. In other words, good experiences could lead to higher customersatisfaction. Schmitt (1999) pointed out that the goal of experiential marketing is to enhance customersatisfaction. Liao (2009) confirmed the positive relation between experiential elements and satisfaction in a studyof experiential marketing on the satisfaction and loyalty of spectators of baseball games. Wei and Hung (2010)examined the relations of experiential marketing to customer satisfaction and customer loyalty with productinvolvement as the mediator and the moderator. Their empirical finding showed that experiential marketing ispositively related to customer satisfaction. Liu (2012) explored the effect of experiential marketing ofSmartphones on customer satisfaction with personality traits as moderators. Her finding revealed sense, feel,relate, and act all have a positive effect on customer satisfaction. Based on the above literature, we propose thewww.ccsenet.org/ijbm International Journal of Business and Management Vol. 10, No. 1; 2015108following hypotheses:H2: Experiential marketing has a positive relation with customer satisfaction.Schmitt (1999) mentioned that creating a pleasant experience for customers is key to customer loyalty, andcustomers who agree on the experiential marketing that they have experienced are more likely to exhibit higherloyalty. Chen and Lee (2009) conducted a survey on the effects of SEMs on loyalty of blog users. Their findingshowed increased effort in sense, feel, and think marketing could lead to higher loyalty of blog users. Chou et al.(2010) explored the effect of experiential marketing on customer loyalty in the direct selling industry. Theyfound that experiential marketing could increase customer loyalty through customer value and satisfaction, andcustomer value could also influence customer loyalty through customer satisfaction. Lai (2012) reported asimilar finding in a study of experiential marketing and loyalty among family members of pediatric patients.Wang (2013) examined the effect of experiential marketing activities to brand image and customer loyalty usingthe large musical events held by Heineken as an example. His finding showed the experiential marketingactivities organized by Heineken contributed significantly to loyalty of their customers. Based on the aboveliterature, we propose the following hypotheses:H3: Experiential marketing has a positive relation with customer loyalty.Fornell (1992) stated that customer satisfaction leads to increased loyalty, whereas customer dissatisfaction leadsto decreased loyalty and more compliant. Hence, customer satisfaction is a correlate of customer complaint andcustomer loyalty. Anderson and Sullivan (1993) showed that customer satisfaction has a positive effect onconsumers’ repurchase behavior, which has been recognized as a manifestation of loyalty. In other words,customer satisfaction is positively related to customer loyalty. Anderson et al. (1994) explored antecedent andoutcome variables of customer satisfaction. Their finding revealed that customer satisfaction has a positiverelation with repurchase behavior. Because repurchase behavior is a manifestation of loyalty, it can be inferredthat customer satisfaction is positively related to customer loyalty. According to Fornell et al. (1996), customersatisfaction leads to customer loyalty. Consumers develop an attitude after using a product or service. If they feelsatisfied with the product or service, their propensity to repurchase it will become higher. In the long-run, theywill develop an attitudinal loyalty to the product or service. It has been empirically confirmed using theEuropean Customer Satisfaction Index (ECSI) model that customer satisfaction has a direct relation withcustomer loyalty, and so do corporate image and the perceived quality of staff (Gronholdt et al., 2000). Tsai(2010) explored the effect of experiential marketing and experiential value on customer satisfaction andcustomer loyalty among Taiwanese restaurants. His finding showed a positive relation between customersatisfaction and customer loyalty. Lee (2012) obtained the same finding from a research of the effect of brandimage and experiential marketing on customer satisfaction and customer loyalty among Taiwanese tea merchants.Tsai and Yeh (2012) surveyed the effect of experiential marketing and qualia of digital cameras on brand image,customer satisfaction, and customer loyalty. They confirmed that customer satisfaction and customer loyalty aresignificantly and positively related. Based on the above literature, we propose the following hypothesis:H4: Customer satisfaction has a positive relation with customer loyalty.3. Data AnalysisIn this study, we developed a questionnaire according to the experiential marketing scales developed by Schmitt(1999) and Wang (2005). The research subjects were consumers who had an experience of buying goods fromlativ. 325 consumers participated in the survey and produced 314 valid responses.3.1 Analysis of Demographic Variables and Consumption ExperiencesAccording to the descriptive statistics of the sample, the sample comprised mainly female respondents. Most ofthe respondents were aged between 20~39, married, and living in northern cities of Taiwan. In terms ofeducation, the college group was significantly larger than other groups. Their occupations were evenlydistributed across all industries. In terms of the average monthly income, those who earned NT$30,000-50,000 amonth constituted the majority. Most respondents reported to spend 1-3 hours on the Internet each day.As shown in Table 2, most respondents first learned about lativ from online advertisements and had been withlativ for 1-2 years. Besides, most respondent had one or none purchase from lativ website over the last threemonths, with an average length of stay in the website between 30 minutes-1 hour and an average expense in eachpurchase between NT$1,001-2,000. Women’s wear products were the primary items they purchased, and amongwhich tops constituted the majority. 7-11 pay-on-collection was the primary choice of payment method amongthe respondents.www.ccsenet.org/ijbm International Journal of Business and Management Vol. 10, No. 1; 2015109Table 2. Analysis of consumption experiences3.2 Analysis of Relations of Experiential Marketing with Customer Satisfaction and Customer LoyaltyA Pearson correlation analysis was performed to examine the correlations of SEMs with customer satisfactionand customer loyalty. As shown in Table 3, all the five SEMs had a significant correlation with customersatisfaction. The correlations were positive and at a moderate level. The five SEMs were also significantlycorrelated with customer loyalty. Among them, relate had a positive and high correlation with customer loyalty.All the other SEMs had a moderate correlation with customer loyalty. Besides, the correlation between customersatisfaction and customer loyalty was positive and high.Item Option Sample size Percentage (%)How did you first learn aboutlativ?
Internet advertisementsRecommendations by relatives and friendsPosters in MRT trains or busesNewspapers / magazinesTV advertisementsEndorsersMicro filmsOthers
How long have you been withthe lativ website?6 months or shorter 51 16.26 months – 1 year 81 25.81–2 years 100 31.82–3 years 53 16.93–4 years 16 5.1Longer than 4 years 13 4.1How many purchases have youmade on the lativ website overthe last three months?1 or none 138 43.92-3 purchases 122 38.94-5 purchases 35 11.16-7 purchases 7 2.28 or more purchases 12 3.8What is the average length ofyour stay on the lativ website?No more than 30 minutes 121 38.530 minutes–1 hour 149 47.51-2 hours 35 11.1More than 2 hours 9 2.9How much do you spend onaverage in each purchase fromthe lativ website?NT$1,000 or less 109 34.7NT$1,001-2,000 163 51.9NT$2,001-3,000 32 10.2NT$3,001-4,000 7 2.2NT$4,001 ~ 5,000 0 0NT$5,001 or more 3 1What is the main category ofitems you purchase on the lativwebsite? (multiple choices)Men’s wear 135 43Women’s wear 245 78Children’s wear 123 39.2What are the wear items youmost frequently purchase onthe lativ website? (multiplechoices)Tops (including jackets and dresses) 293 93.3Bottoms (including skirts and jeans) 79 25.2Underwear (including thermal underwear) 131 41.7Accessories (including scarf, hats, and belts) 13 4.1What is your common choiceof payment method?7-11 pay-on-collection 168 53.5Family Mart pay-on-collection 46 14.6Hi-Life pay-on-collection 13 4.1OK pay-on-collection 5 1.6
11 3.5Online credit card payment 71 22.6www.ccsenet.org/ijbm International Journal of Business and Management Vol. 10, No. 1; 2015110Table 3. Correlations of SEMs with customer satisfaction and customer loyaltyVariable Customer satisfaction Customer loyaltySense 0.689 0.613Feel 0.679 0.669Think 0.605 0.634Act 0.466 0.581Relate 0.621 0.731Customer satisfaction 1 0.775Customer loyalty 0.775 13.3 The Effect of SEMs as Predictors of Customer Satisfaction and Customer LoyaltyThe predicting power of the five SEMs for customer satisfaction and customer loyalty was examined throughregression analyses as explained below.(1) Multiple regression analysis of the correlations between SEMs and customer satisfactionA multiple regression analysis was performed with the five SEMs set as independent variables and customersatisfaction as the dependent variable. As shown in Table 4, the coefficient of determination (R2) was 0.57,meaning that the SEMs explained 57% variance in customer satisfaction. The variances explained by sense, feel,and relate were significant, and that explained by sense was the greatest. The power of think and act inexplaining customer satisfaction was not significant.Table 4. Multiple regression analysis of the correlations between SEMS and customer satisfactionCustomerSatisfactionNon-standardized coefficientStandardizedcoefficient t pB Se Beta
Note. R2=0.58; adj R2= 0.57; SEE=2.28; F=85.55(2) Multiple regression analysis of the correlations between SEMs and customer loyaltyA multiple regression analysis was performed with the five SEMs set as independent variables and customerloyalty as the dependent variable. As shown in Table 5, the coefficient of determination (R2) was 0.63,suggesting that the SEMs explained 63% variances in customer loyalty. Among the five modules, Feel, Act, andRelate showed a significant explanatory power, with that of relate being the highest. The power of sense andthink in explaining customer loyalty was not significant.Table 5. Multiple regression analysis of the correlations between SEMs and customer loyaltyCustomerLoyaltyNon-standardized coefficientStandardizedcoefficient t pB Se Beta
Note. R2=0.64; adj R2= 0.63; SEE=2.50; F=109.38.www.ccsenet.org/ijbm International Journal of Business and Management Vol. 10, No. 1; 20151114. ResultsIn this study, we use the five SEMs proposed by Schmitt (1999) to investigate customer satisfaction andcustomer loyalty among consumers of an online apparel store, lativ. Our findings are summarized as follows:Perception of experiential marketing differs significantly by demographic variables (H1). Lativconsumers’ perception of experiential marketing differed significantly by demographic variables. Genderdifference was significant in perception of sense, feel, act, and relate. Specifically, female consumers weregenerally more influenced by these experiential modules than male ones. A plausible explanation is that womenare more fond of shopping and more sensitive than men in nature. The difference in perception of sense betweenmarital statuses was significant. This was probably related to the fact that married respondents had to take care oftheir career and family and had less time for online shopping. It would be easier to satisfy their needs for sensoryexperiences. The difference in perception of think between regions of residence was significant. This wasprobably related to the difference in urbanization level between regions. Respondents living in northern cities ofTaiwan had more access to a wider diversity of information. As a result, they might have higher demands for anonline store compared to those living in elsewhere in Taiwan. Among respondents with different income levels,the difference in perception of sense was significant. A plausible explanation is that respondents in the middleclass of the society might find products of lativ more suited for them, and their needs could be satisfied moreeasily. The difference in perception of act was significant across different durations of using the Internet.Consumers with more time for the Internet better recognized the importance of act because they could make abetter use of the functions provided in the lativ website to acquire information they might need. To sum up,perception of sensory experiences offered by lativ differed significantly by demographic variables. We suggestmanagers of lativ probe into the preferences of their target consumers and adjust their product line according tothe preferences. By doing so, they can attract patronage of customers and further increase their satisfaction andloyalty. Experiential marketing has a positive relation with customer satisfaction (H2). In this study,all the five experiential modules were found to have a moderate and positive correlation with customersatisfaction. This finding suggests that lativ should be more committed to creating experiences for customers soas to indirectly enhance their satisfaction. Experiential marketing has a positive relation with customerloyalty (H3). Results showed that experiential marketing was positively related to customer loyalty. Amongthe five SEMs, relate was highly and positively related to customer loyalty. The four other SEMs were found tohave a moderate correlation with customer loyalty. This finding implies that increasing customer experiences,particularly in the aspect of relate, could indirectly lead to increased customer loyalty. Customer satisfactionhas a positive relation with customer loyalty (H4). Results confirmed that customer satisfaction andcustomer loyalty were positively correlated, and the correlation was high. This suggests that higher customersatisfaction could result in higher customer loyalty. It can be inferred that managers of lativ should recognize theimportance of customer satisfaction, because higher customer satisfaction can lead to higher intentions torepurchase and recommend as well as higher loyalty in the behavioral and general aspects.Experiential marketing is a significant predictor of customer satisfaction and customer loyalty.The empirical results confirmed that sense, feel, and relate were significant predictors of customer satisfaction,and the power of sense was the highest. Besides, feel, act, and relate were significant predictors of customerloyalty, and the power of relate was the highest. In short, experiential marketing was a significant predictor ofcustomer satisfaction and customer loyalty, and sense was particularly effective in increasing customersatisfaction. It can be inferred that managers of lativ can benefit an increase in customer satisfaction if they aredevoted to creation of visual, haptic, and smell experiences for their customers as well as to the delightfulness oftheir website and products. As for customer loyalty, relate was found to be the most effective predictor. Thissuggests that increasing the relating experience of customers is an effective approach that lativ can adopt to buildbrand preferences in their customers, which can further lead to an increase in their loyalty.5. Conclusions and SuggestionsIn this study, we introduce the concept of experiential marketing into an online apparel store. We investigateconsumers’ perception of experiential marketing to identify the important and deficient aspects in experientialmarketing of this store.This study showed that perception of experiential marketing significantly differed by some demographicvariables. In nowadays, dual-income families constitute the majority. Many career women are so busy that theyhave to purchase daily items from the Internet. The Internet allows them to prepare for all the items needed bythe family at ease. The development of the Internet has brought much convenience to modern people. It shouldbe noted that the ratio of male consumers in our sample is small. Therefore, we suggest managers of online shopwww.ccsenet.org/ijbm International Journal of Business and Management Vol. 10, No. 1; 2015112develop more wide market platform, and they should offer comprehensive services to increase their salesperformance.The analysis of consumption experiences also showed that most online consumers learned about this brand fromInternet advertisements. This finding ascertains the high effectiveness of Internet advertisements. Lativ hassuccessfully attracted the attention of consumers by using Internet marketing strategies. If lativ continues to usekeyword advertisements or banner advertisements at portal sites, this company can attract visits of curiousconsumers to increase their sales. Besides, micro films are a new medium of promotion. Micro films can usuallyspark discussions on blogs and online forms in a short time. Using micro films has become an effective way todraw public attention and shape brand image. In our study, we found that the majority of lativ’s customers chose7–11 pay-on-collection as their payment method. Besides, in terms of customer satisfaction, lativ customers weremost satisfied with the delivery speed. This shows that lativ is very successful in product delivery. Thecollaboration with convenience stores has allowed lativ to solve the problem of product collection and returningsuffered by most online stores. The successful integration of distribution channels has helped mitigatedconsumers’ worries about shopping online. Therefore, convenience is still a determinant of success of onlineretailing. We suggest online shop provide speedy delivery of orders within 24 hours to bring the efficiency of theInternet into the real world. It is believed that implementation of such service will pose a serious threat to otheronline retailers of apparel.Among the five dimensions of experiential marketing, sense was recognized as most important, and relate wasconsidered least important. This finding suggests that the respondents were most impressed with the sensingexperiences created by lativ. This is due to the fact that the lativ website has been designed to have clear andeasy-to-use functions of product display. Relate was considered least important, partly because most consumersenjoyed sharing their experiences with others but their impressions about lativ were limited to a mass-marketbrand and low cost rather than fashion. In other words, more effort should be made to create the brand image andspirit of lativ. This problem can be addressed through improvement of product designs. In addition to acomfortable image, we suggest lativ designers add some fashionable elements into their designs to increase theperceived value of their products. If they can make their customers proud of using their products, they cancertainly increase their satisfaction and loyalty.As to customer loyalty, our results indicated that lativ customers showed strong preferences for the brand andwould recommend this brand to their friends and relatives. This finding is consistent with the large number ofrespondents who first learned about the brand from friends and relatives and is also the evidence of theeffectiveness of word-of-mouth marketing adopted by lativ. Hence, we suggest lativ increase its effort indevelopment and maintenance of its fans club. Such effort is helpful for lativ to understand consumer needs andsolve problems encountered by its fans, and can further result in higher customer loyalty. Besides, we suggestlativ offer a wider diversity of products and reward mechanisms to differentiate itself from competitors in themarket. Lativ can also integrate Facebook or other social networking platforms into their website to translatecustomer visits into profits. Such integration can also result in the creation of a new business model.According to this result, experiential marketing was positively related to customer satisfaction and customerloyalty. Among the five SEMs were significant predictors of customer satisfaction and loyalty. Hence, wesuggest managers of online shop constantly analyze consumers’ responsiveness based on the correlations andpredictors found in this study in the development of marketing strategies.ReferencesAnderson, E. W., Fornell, C., & Lehmann, D. R. (1994). Customer satisfaction, market share and profitability:findings from Sweden. Journal of Marketing, 58(2), 53–66. http://dx.doi.org/10.2307/1252310Anderson, W. O., & Sullivan, W. M. (1993). 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