Customer/Shopper Experience Management (CEM) Case Experience... · The customer experience originates from a set of interactions between a customer and a product, a ... 6. Make Relevant,

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  • Customer/Shopper Experience Management

    (CEM)

    Case studies in Retail Industry

    Virgil Popa

    Theodor Purcarea

    Dorina Tnsescu

    Mdlina Barna

    Valahia University of Targoviste

    Supply Chain Management for Efficient Consumer Response

    Conference

    31 May 1 June 2013

    Valahia University of Targoviste, Romania

    SCM 4 ECR

  • 2

    Agenda:

    1. Experience Economy. Customer Experience

    2. Shopping Experience

    3. Shopper Marketing

    4. Brighter Shopping Experience

    5. Business Model of the Future

    6. Case study Retail customer experience

    SCM 4 ECR Conference, 2013 Virgil Popa, Theodor Purcarea, Dorina Tanasescu, Madalina Barna

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    1.

    Experience Economy. Customer Experience

    SCM 4 ECR Conference, 2013 Virgil Popa, Theodor Purcarea, Dorina Tanasescu, Madalina Barna

  • Customer Experience

    The customer experience originates from a set ofinteractions between a customer and a product, acompany, or part of its organization, which provoke areaction.

    This experience is strictly personal and implies thecustomers involvement at different levels (rational,emotional, sensorial, physical, and spiritual).

    A second and related definition is that CustomerExperience is the internal and subjective responsecustomers have to any direct or indirect contact with acompany.

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    SCM 4 ECR Conference, 2013 Virgil Popa, Theodor Purcarea, Dorina Tanasescu, Madalina Barna

  • Customer Experience

    The customer experience encompasses the totalexperience, including the search, purchase, consumption,and after-sale phases of the experience, and may involvemultiple retail channels.

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    SCM 4 ECR Conference, 2013 Virgil Popa, Theodor Purcarea, Dorina Tanasescu, Madalina Barna

  • Major Factors Influencing Consumer Buying Decision Process

    Macro Factors Need

    Recognition

    Information

    search

    Evaluation Purchase Post

    purchase

    Brand

    Price

    Promotion

    Supply Chain Management

    Location

    Advertising

    Packaging & labeling

    Service

    Mix

    Atmosphere

    6

    SCM 4 ECR Conference, 2013 Virgil Popa, Theodor Purcarea, Dorina Tanasescu, Madalina Barna

  • The Brand Experience

    The customer comes to a retailing environmentwith perceptions about two types of brands:

    - the retail brand (e.g., Starbucks, Wal-Mart);

    - the manufacturer or service brand that is sold in theretail stores (e.g., Ralph Lauren, Tide, Dell).

    SCM 4 ECR Conference, 2013 Virgil Popa, Theodor Purcarea, Dorina Tanasescu, Madalina Barna

  • The Price Experience

    A lot rides on how a retailer sets its prices. Thethree other Ps create value for the seller; the fourth P ofprice captures value.

    This is the only P that earns revenue for the retailer.When retailers price a product or service too high,

    consumers view it as a poor value and will not buy.

    8

    SCM 4 ECR Conference, 2013 Virgil Popa, Theodor Purcarea, Dorina Tanasescu, Madalina Barna

  • The Promotion Experience

    Consumer promotions also take several forms,including price promotions, loss leaders, and in-storedisplays.

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    SCM 4 ECR Conference, 2013 Virgil Popa, Theodor Purcarea, Dorina Tanasescu, Madalina Barna

  • The Supply Chain Management Experience

    Most of the researchers centers on what happens atthe front-end of the retail store, supply chain managementoccurs at the back end.

    For decades, retail supply chain and logistics issuesseemed somehow less important than other activities suchas promotion, pricing, or customer service.

    10

    SCM 4 ECR Conference, 2013 Virgil Popa, Theodor Purcarea, Dorina Tanasescu, Madalina Barna

  • The Location Experience

    Retailing academics and practitioners seem alwaysto emphasize location, location, location as the key tosuccess.

    An important research advance could consider therole of travel time on consumers choices of retail formatsand the related retailing implications because consumersvalue their time, researchers should investigate what itmight take, in terms of price savings and deals, to attractconsumers to a factory outlet store (normally located somedistance away) rather than a similar store in aconveniently located mall.

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    SCM 4 ECR Conference, 2013 Virgil Popa, Theodor Purcarea, Dorina Tanasescu, Madalina Barna

  • The Advertising Experience

    Exponential growth in Internet hosts and personalcomputer adoption has led to dramatic increases in onlineactivity.

    During the growth process, marketers recognizedthat the Internet was a medium for reaching millions ofpotential customers. Since then, marketers have adaptedvalue based advertising strategies to the Internet.

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    SCM 4 ECR Conference, 2013 Virgil Popa, Theodor Purcarea, Dorina Tanasescu, Madalina Barna

  • The Packaging & Labeling Experience

    Packaging plays a major role when products arepurchased.

    After all, it is the first thing seen before makingpurchase choices and it is widely regarded that over 50 percent of purchasing decisions are made at the shelf, or pointof purchase.

    Therefore, packaging which creates differentiationand identity in the relatively homogenous consumerpackaged goods industry is therefore highly important.

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    SCM 4 ECR Conference, 2013 Virgil Popa, Theodor Purcarea, Dorina Tanasescu, Madalina Barna

  • The Service Mix Experience

    Customer service is the ability of an organization toconstantly and consistently give the customer what theywant and need.

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    SCM 4 ECR Conference, 2013 Virgil Popa, Theodor Purcarea, Dorina Tanasescu, Madalina Barna

  • The Atmosphere Experience

    Consumer spending behavior can be significantlyinfluenced by the store atmosphere and the customermood.

    Customers require a store layout that maximizesthe number of products seen within the context of acustomers' need for the product.

    15

    SCM 4 ECR Conference, 2013 Virgil Popa, Theodor Purcarea, Dorina Tanasescu, Madalina Barna

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    2.

    Shopping Experience

    SCM 4 ECR Conference, 2013 Virgil Popa, Theodor Purcarea, Dorina Tanasescu, Madalina Barna

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    We designed the questionnaire taking in consideration three approaches:

    - The approach of Fred Crawford and Ryan Mathews in the

    book The Myth of Excellence (2001). They are proposing as primary

    and secondary attributes of companies and brands the following: price,

    device, product, experience, access. We are considering them as axes, as

    first level criteria in creating a consumer-relevant company, also used by

    us in the paper Consumer and Shopper Satisfaction. Measurement of

    Collaborative Supply Value Chain (Supply Chain Management for

    Efficient Consumer Response Conference, 2011)

    - The approach of Kamaladevi in the paper Experience

    Management in Retailing where the author considers as major factors

    influencing consumer buying decision process the following: brand,

    price, promotion, supply chain management (the relationship with the

    suppliers of suppliers), location , advertising, packaging and labeling,

    services, atmosphere;

    - The study from School of Management, Cranfield University,

    What Makes a Great Customer Experience by Fred Lemke, Hugh

    Wilson and Moira Clark,

    SCM 4 ECR Conference, 2013 Virgil Popa, Theodor Purcarea, Dorina Tanasescu, Madalina Barna

  • Shopping Experience

    A. Customer factors:

    -Social factors,e.g., shopping with family and friends;

    -Task factor, e.g., searching for a Christmas tree inautumn;

    -Time factor, e.g., having enough time to shop;

    -Product involvement, e.g., whether a customer forcomputers is interested in technical features;

    -Financial resources, e.g., having enough money to spend.

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    SCM 4 ECR Conference, 2013 Virgil Popa, Theodor Purcarea, Dorina Tanasescu, Madalina Barna

  • Shopping Experience

    B. Retailer factors:

    - Retail prices;

    - Selection, e.g., store offers a unique selection of items;

    - Store environment, e.g., animals and exotic plants in astore;

    - Salespeople, e.g., friendly, silly.

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  • Shopping Experience

    C. Six factors influence the experience of customersin large retailing stores:

    -Multi-store shopping - shopping in different stores instead ofbuying all items in one particular store;

    -Bigness and confusion - big companies, extensive productchoice, and overwhelming product assortment are seen asconfusing by some customers;

    -Personal interaction and personalised service - large storesare seen