Experiential Marketing A case study of Starbucks

Abstract
We extend our heartfelt thanks to our instructor, Ling-Hui Hsu, Ph.D., the assistant professor of Department of English at ing !huan "ni#ersit$ %ho herein her expertise and

al%a$s pro#ide support and opinion for our stud$ at the leisure time, and %ith her professional skill and experience shared for us. Her #aluable suggestions helped all of us to appl$ and comprehend the theories and help us to get more details for our paper. &tarbucks is the top to become the most famous coffee chain store in the minds of customers. 'hese researchers attempt to find out %h$ &tarbucks has been able to gain a lead in coffee chains. 'his research aims at #erif$ing that the experiential marketing is not onl$ a theor$, but a practical strateg$ %hich can help an international coffee chain stabili(e the repurchasing rate of customers and reach operational success.

Table of contexts
Abstract))))))))))))))))))))))))))))).......* !hapter +ne, -ntroduction *.* .ackground))))))))))))))))))))))))))./ *.0 oti#ation))))))))))))))))))))))))))...1

*./ Purpose of 'his &tud$)))))))))))))))))))))).2 *.1 3alue of 'his &tud$)))))))))))))))))))))))4 !hapter '%o, Literatures re#ie% 0.*!offee !hains)))))))))))))))))))))))))..5 0.0 arketing &trategies))))))))))))))))))))))....5 0./!ustomer 6elationship anagement))))))))))))))))...7 arketing &trateg$))))))))))...7

0.1&chmitt8s 2-&tages Experiential

0.2 !onsumer .eha#iors Anal$sis)))))))))))))))))........*1 0.4 !ustomer &atisfaction)))))))))))))))))))))).*2 0.5 !ustomer Lo$alt$)))))))))))))))))))))))...*4 0.7 &atisfaction Affects Lo$alt$)))))))))))))))))))...*4 0.9 H$pothesis))))))))))))))))))))))))))..*9 !hapter 'hree, $tholog$

/.* Participants)))))))))))))))))))))))))).0* /.0 Procedure)))))))))))))))))))))))))))0* /./ aterial)))))))))))))))))))))))))))...00

/.1 &tatistical 'reatment ))))))))))))))))))))))..00 !hapter :our, Data Anal$sis

2

1.* 6eliabilit$ Anal$sis))))))))))))))))))))))).0/ 1.0 Demographic #ariable)))))))))))))))))))))).05 1./ 'esting h$potheses ......................................................................................)...07 !hapter :i#e, Discussion and !onclusion 2.* Discussion)))))))))))))))))))))).))))../0 2.0 :urther &uggestion)))))))))))))))))))))).)./2 6eferences Attachment*

CHAPTER O E ! TRO"#CT!O
$%$ &ackground

-n recent $ears the gro%th of coffee shops has been accelerating in 'ai%an. According to '!:A statistics, there %ere bet%een 2,7;; and 4,;;; coffee shops in each count$ of 'ai%an in 0;;2. Ho%e#er, more and more coffee chains such as &tarbucks, -s !offee, -kari and Dante ha#e established their distinct features. !offee chain stores ha#e resorted to effect gathering, selecting, using and retaining the rele#ant kno%ledge from the #aried t$pes of internal stakeholders and external sources to become more competiti#e <Da#id, 0;;5=. :urthermore, relation bet%een coffee chains marketers and customers is getting closer toda$. 'ransactional marketing or benefits marketing, focuses on price competition and indi#idual transactions <&tra(dina, 0;;;=. !offee marketing en#ironment is changing. arketers ha#e been using scientific strategies to determine their marketing strateg$.

Experiential marketing emphasi(es customers8 action in marketers8 strateg$ making.

:igure*.*, 'he flo% chart of research processes

-n this research, the first step is to define the focus of the stud$. 'he second is an attempt to re#ie% literatures on experiential marketing. :ollo%ing the re#ie% is design of >uestionnaires. :inall$, data collected %ill be anal$(ed to explore ho% &tarbucks influences

purchasing beha#ior of customers.

$%' Moti(ation

Experiential marketing is a stud$ of the gap bet%een the intended effect and actual response of customer. &tarbucks uses experiential marketing as a case example to affect customer lo$alt$ in their products <Li, 0;;5,=. -n recent $ears, coffee has graduall$ accounted for a larger percentage in be#erage market. ore and more coffee chain stores are around in

the cit$ to form fierce competition. 'hose coffee shops ha#e lots in common. When it comes to coffee chain store, %hat comes to mind for most people is a goddess image, the logo of &tarbucks. &tarbucks has made it to the top to become the most famous coffee chain store in the minds of customers. -t might be eas$ to name a couple of reasons behind the success of &tarbucks, such as nice store design and good ad#ertising programs. Ho%e#er, it is belie#ed that the success of &tarbucks is not >uite straight for%ard as it seems. 'hese researchers attempt to find out %h$ &tarbucks has been able to gain a lead in coffee chains. ?o%ada$s, societ$ is a huge experiential machine. 'he goods should contain the elements of experience and the process of shopping also needs <Liou, 0;;1=. 'he pleasant experience through shopping process is the ma@or trend of the marketing in the future. Experience is the result of a certain product brings out people8s identit$ of that product and it

can totall$ sho% their st$le and taste. -n sum, the Experiential

arketing helps the marketer

to demonstrate their st$le and taste and it is going to be the essential marketing strateg$ in the future.

$%) Purpose of T*is Study

Experiential marketing is an interaction among customers, marketing team, and products. -t8 not based on traditional expectation. What has been created is true brand lo$alt$ from customer to gain the ultimate competiti#e ad#antage <6eichheld and &chefter, 0;;;=. 'here is little information a#ailable on ho% experiential marketing is directl$ related to the coffee chain store &tarbucks. ost of the research conducted pre#iousl$ on &chmitt8s

experiential marketing is related to hospitalit$. 'o minimi(e the selected range b$ focusing on the operation of Experiential arketing in one chosen coffee chain store, &tarbucks, the other

coffee chain stores ha#e been excluded in our research. 'he purpose of this research is to explore the relationship bet%een the reasons for customers8 lo$alt$ to &tarbucks and the theoretical concepts of &chmitt8s experiential marketing so as to determine %hether experiential marketing can be used to explain &tarbucks8 success.

$%+ ,alue of T*is Study

'he trend in experiential marketing has broken a%a$ from the traditional marketing strategies to create a ne% relationship bet%een customers and marketers <Arunde$, 0;;7=. 'he ke$ concepts of experiential marketing are to include customers in decision making and put customers as the focus in strategies forming. 'his research aims at #erif$ing that the experiential marketing is not onl$ a theor$, but a practical strateg$ %hich can help an international coffee chain stabili(e the repurchasing rate of customers and reach operational success.

CHAPTER T-O .!TERAT#RE RE,!E-

'%$ Coffee C*ains

Each &tarbucks chain insists on gi#ing consistent >ualit$ ser#ice. According to studies, coffee chains ha#e enabled the creation of large numbers of similar outlets that deli#er relati#el$ standardi(ed products and ser#ices in an efficient %a$ <Da#id, 0;;5=. !offee chain means that e#er$ coffee shop of the organi(ation carries the same products and ser#ices. People can #isit an$ coffee shop of the organi(ation and en@o$ the same products. 'he ke$ to competiti#eness is to effecti#el$ gather, select, use and retain the rele#ant kno%ledge from #arious t$pes of internal stakeholders and external sources <Da#id, 0;;5=. 'he success of the

coffee chain is that the$ integrate the internal and external sources.

'%' Marketing Strategies

A marketing plan contains a set of specific actions re>uired to successfull$ implement a marketing strateg$. arketing strateg$ determines the choice of target market segment,

positioning, marketing mix, and allocation of resources <Peter B Cames, *975=. +nce relationship marketing starts to become a trend, man$ tr$ and offer to pro#ide a frame%ork for it, and most of them simultaneousl$ <&tra(dina, 0;;;=. &trateg$ marketing is called the strategies of 1P8s -- product, price, promotion and place <!hiou B C$h-&hen, 0;;*=.

'%) Custo/er Relations*ip Manage/ent

!ustomer relationship management is related to customer life <ac>uire, enhance, maintain= <Dalakota B 6obinson, *999=. &tarbucks pro#ides a humani(ed leisure place %here customers can en@o$ the relaxing store atmosphere. 'ransactional marketing or benefits marketing, focuses on price competition and indi#idual transactions <&tra(dina, 0;;;=. -n order to compete %ith other coffee shops, &tarbucks pro#ides some re%ards to customers fre>uentl$. :or example, during anni#ersar$ celebration periods, customers are re%arded b$ Ethe bu$ one get one freeF campaign.
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'%+ Sc*/itt0s 12Stages Experiential Marketing Strategy

Sense &ense marketing focuses on fi#e senses, %hich are #ision, hearing, smelling, taste and touch <&chmitt, *999=. &enses are transducers from the ph$sical %orld to the realm of the mind. &ensor$ s$stems code for four aspects of a stimulus, t$pe <modalit$=, intensit$, location, and duration. !ertain receptors are sensiti#e to certain t$pes of stimuli. 6eceptors send impulses in certain patterns to send information about the intensit$ of a stimulus. 'he location of the receptor that is stimulated gi#es the brain information about the location of the stimulus. 'he duration of the stimulus is con#e$ed b$ firing patterns of receptors <Dolb B Whisha%, 0;;/=. 'he satisfactions and @o$ from sense perception create not onl$ supplementar$ #alue for products but also experience of sense perception. -f managed %ell, sense marketing makes it possible for customers to distinguish compan$ and product, stimulating customersG sense experiences and deli#ering #alues to customers. -n order to create a positi#e image, marketing personnel need to pa$ attention to the main elements, st$les and theme. 'he #isual identit$ of a corporation or a brand is often the most important component in in#oking attitudes, associations, and customer responses, a phenomenon that Louis !heskin called Esensation transfer.F 'herefore, it is often the sensor$

experience that attracts a customer to a corporation or brand and that needs to be considered in making a strategic decision. 'he ke$ strategic ob@ects can moti#ate its8 customers to bu$ its product, and deli#er #alue to customers8 recognition. 'he ke$ success of sense experience is to assure consistent pro#ision of positi#e impressions and to create di#ersit$ <&chmitt, *999=. :or example, interior design, decoration, and @a(( music in a &tarbucks coffee shop.

3eel E:eel marketing is the strateg$ and implementation of attaching affect to the compan$ and brand #ia experience pro#iders <&chmitt, *999, p**7=.F !learl$, positi#e or negati#e feeling %ill affect the product or ser#ice %hich is consumed. According to &chmitt, affecti#e experiences ha#e mood and emotion. E oods are inspecti#e states <&chmitt, *999, p*00=.F :or example, emplo$ees at a &tarbucks store %ould remember the names of customers and the preference of each fre>uent customer. 'hat usuall$ makes consumers surprised and brings customers good feelings. &uch a nice gesture is all the better since it is %as unexpected on the part of the customers. ood ma$ occur in specific stimuli, e#en consumer can8t

disco#er that. :or example, nois$ music in a coffee shop puts customers in a bad mood. E-n contrast to moods, emotions are intense and stimulus-specific affecti#e states <&chmitt, *999=.F .ased on the &chmitt theor$, there are t%o t$pes of emotion, basic emotion and complex emotions. .asic emotions comprise the base of our affecti#e li#es, such like

10

chemical elements. .asic emotions can be found in e#er$ part of the %orld. :or example, different cultures ha#e similar facial expressions. combinations of basic emotions. !omplex emotions are blends and

ost marketing-generated emotions are complex ones

<&chmitt, *999=. &chmitt suggested sixteen t$pes of consumption emotions. &uch as anger, discontent, %orr$, sadness, fear, shame, en#$, loneliness, romantic, lo#e, peacefulness, contentment, optimism, @o$, excitement, and other items <gull$, proud, eager=. -n &tarbucks, face to face interactions are important bet%een consumers and emplo$ees. !onsumers feel comfortable and relaxed %hen the$ enter the &tarbucks. !ustomers can find comfortable sofas and %armhearted ser#ice %hich make consumer feel good.

T*ink E'he ob@ecti#e of 'hink marketing is to encourage customers to engage in elaborati#e and creati#e thinking that ma$ result in ree#aluation of the compan$ and products. 'hink marketing has the potential to tap into-and sometimes guide-ma@or Eparadigm shiftsF in societ$, as people rethink old assumptions and expectations <&chmitt, *999, p*/7=.F &chmitt conclude the think principle to be, a sense of surprise, a dose of intrigue and a smack of pro#ocation. 'o surprise customers is important because it is the ke$ to customers8 creati#e thinking. &urprise creates delight and surpasses customers8 expectations. 'hen, intrigue led customer8s curiosit$ that the$ ma$ come up %ith %hat &tarbucks is and ho% it

11

%orks. What %as and %hat %ill beH -n short, intrigue is getting customers to think at times about the product and brand. -n the final phase, a smack of pro#ocation got consumers8 attention and inspired them to discuss. -t depends on %hat the marketer8s intention and %hat the goal is. 'he essence of 'hink marketing is to appeal to customers8 creati#e thinking about a compan$ and its brands. -t %ill let marketer e#aluate their compan$ and products ane%. When people refresh their expectations and assumptions, 'hink marketing ma$ arouse customers8 different thinking to &tarbucks and can it be related to this marketing strateg$H Ho% and in %hat %a$ does &tarbucks %ant customers to rethink their products and ser#iceH

ACT EA!' marketing strategies are designed to create customer experiences related to the ph$sical bod$, longer-term patterns of beha#ior and lifest$les as %ell as experience occurring as a result of interacting %ith other people <&chmitt, *999, p*21=.F Act experiences %ere mostl$ ignored in the traditional marketing. 'here are eight points to Act marketing strategies. 'he main concept of Act experiences is based on three categories, Ph$sical .od$ Experiences, Lifest$les and -nteract. :irst of all, Ph$sical .od$ Experiences is that people8s flesh, motor actions and bod$ signals can affect and stimulate the ph$sical desires produced b$ en#ironment. :lesh is also a source for people to experience a sub@ect besides %hat $ou see and %hat $ou smell, such as
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getting a haircut, a manicure or a massage.

otor actions demonstrate ho% people8s thoughts

can be affected b$ non#erbal actions. +ne of the domains of motor actions is actions stimulated b$ the en#ironment, and the other domain is the actions from inside the person. E.od$ signals are a factor of e#olutionar$ actions since the da%n of man. People are a%are of approach and a#oidance, preference and dislike, domination and submission, and ho% those suggestions affect our reactions <&chmitt, *999, p*4/=. F &econdl$, Lifest$les, Ein the marketing literature, lifest$le refers to the person8s pattern of li#ing in the %orld as expressed in the person8s acti#ities <&chmitt, *999, p*42=.F 'he %ork that marketers should do is to sense and lead people to%ards the lifest$le experience. 'he %a$ that marketers influence lifest$les is b$ inducing acting %ithout <much= thinking, using role models and appealing to norms. 'hird, E-nteract do not occur in a social #acuum. -nstead, people8s beha#ior depends not onl$ on their outcome beliefs, attitudes, and intentions but also beliefs of reference groups and social norms <&chmitt, *999, p*45=.F 'he Act experiences are more focused on the medium. An example of a medium could be bu$ing things online or in a retail store. Another example %ould be using e-book or read a real book.

Relate E6elate marketing actions b$ relating the indi#idual self to the broader social and cultural context reflected in a brand <&chmitt, *999, p*5*=.F 6elate connect %ith other group,
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%hich include lifest$le, gender, or more extensi#el$, other ethnic groups. Ho%e#er, this outcome is not the most prominent in building relationship bet%een customers and brand. 'he meaning of relate marketing is to make people relate to other indi#iduals, the %hole groups, e#en cultures b$ brand. E'he purpose of relating to others seems to be moti#ated b$ a need for categori(ation and a search for meaning <&chmitt, *999, p*52=.F When people describe themsel#es in terms of certain indi#idual traits, the$ not onl$ describe identification but also contrast %ith another. 6elationships ma$ form %ith kin relations or social roles. &te#en Pinker <*995= defined t%o relations differences on Ethe lo#e of kin comes naturall$I the lo#e of non-kin does not <Pinker, *995, p 109=.F Another 6elated element is cross countr$ #alue. -n different cultures, the strateg$ of marketing should be sensiti#e enough to approach customers and a#oid the taboo. :or example, the global enterprise Pepsi has been prudent in selecting the spokesmen from different areas or countries. 'he reason is that those spokesmen can be related to the customers8 life. !ustomers can see the pop star that the$ are familiar spoke for the merchandiseI not the person %ho is from other countr$ that the$ barel$ kno%. :or &tarbucks, small tokens and treasure ha#e constantl$ been introduced to customers as gifts or sou#enirs to dra%n customers closer to &tarbucks.

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'%1 Consu/er &e*a(iors Analysis

arketers %ant to create an emotional attachment bet%een customers and %hat the$ are selling. 'he$ %ant to offer customers an experience, not @ust sell goods or ser#ices <&il#erman, 0;;2=. Experiential marketing focuses not onl$ on selling goods but on customers8 feelings, so the marketer %ould take it serious about the relationships bet%een compan$ and customers. Experiential %ork determines the suitable client ob@ecti#es that interact %ith the brand not as the marketing team had initiall$ expected <Liu, 0;;4=. 6ather than selling brand onl$, experiential %ork aims at selling the ser#ice %hich is closer to customers. 'he gap in#ol#es customer8s satisfaction formation in repurchase lo$alt$ <+lsen, 0;;5=. After recei#ing the ser#ice, customers feel great and %ant to en@o$ the ser#ice again.

'%4 Custo/er Satisfaction

'he definition of customer satisfaction <Dotler 0;;/= is, E!ustomer satisfaction is a person8s feelings of pleasure or disappointment resulting from comparing a product8s percei#ed performance in relation to his or her expectation <Dotler 0;;/, p7*=.F !ustomer satisfaction includes rational point of #ie% and emotional point of #ie%. 'he follo%ing are differences bet%een rational point of #ie% and emotional point of #ie%. -n rational point of #ie%, customer satisfaction is the result of a series of ps$chological
15

assessment results <!hruchill B &urprenant, *970=. -n emotional point of #ie%, customer satisfaction is an immediate emotional response of customers <La'our B Peat, *959=. 6ational point of #ie% of satisfaction defined the le#el of satisfaction is the indi#idual percei#ed performance, and personal expectations of the product. !ustomer satisfaction %hich is generated in the process of comparing the t%o cogniti#e <expectations and performance= is an e#aluation. -f the performance transcends or is e>ual to pre#ious expectations, consumers %ill ha#e satisfaction <Westbrook, *97;=. -n addition, customer satisfaction is achie#ed %hen consumers think the product or ser#ice recei#ed is be$ond their dreams in emotional point of #ie% <Westbrook, *97;=.

'%5 Custo/er .oyalty

A >uick indication of customer lo$alt$ is repeated purchase <?e%man B Werbel, *95/= %hile becoming less recepti#e to the competitor8s offerings <:it(ell, *997=. What is often in#ol#ed is customer commitment <.loemer B Dasper, *991= and trust, after an initial experience of customer satisfaction <.ennett, HJrtel, B c!oll-Denned$, 0;;2=.

'%6 Satisfaction Affects .oyalty

Cones and &asser <Cones B &asser, *992= re#eal that higher le#els of customer
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satisfaction do not necessaril$ correspond %ith higher likelihood to repurchase a product or ser#ice. -n both highl$ competiti#e and less competiti#e markets, Cones and &asser find that customers %ho are merel$ satisfied are ne#ertheless prone to defection in high rates, %hile onl$ those %ho are completel$ satisfied are more likel$ to bu$ again <Cones, *992=.

:igure0.7.* &ix 6epresentation of &atisfaction and Lo$alt$

'he rele#ant literature sho%s that the satisfaction-lo$alt$ relation is not %ell specified. &ix of the man$ and di#erse possible associations of satisfaction and lo$alt$ are sho%n in figure 0.7.*. +li#er <*999= shifted the focus a%a$ from customer satisfaction to%ard another #ariable of interest, customer lo$alt$. According to +li#er, lo$alt$ signifies not the repurchasing of a product, but the repurchasing of a product despite situational influences that
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ha#e the potential to cause s%itching beha#ior. :or satisfaction to affect lo$alt$, fre>uent or cumulati#e satisfaction is re>uired so that indi#idual satisfaction episodes become aggregated or blended <+li#er, *999=. -n +li#erGs <*995= frame%ork of lo$alt$ forming, consumers are theori(ed to become lo$al in a cogniti#e sense first, then later in an affecti#e sense, still later in a cogniti#e manner, and finall$ in a beha#ioral manner <+li#er, *995=.

Cogniti(e loyalty 'his stage is referred to as cogniti#e lo$alt$, or lo$alt$ based on brand belief onl$. !ognition can be based on prior or #icarious kno%ledge or on recent experience-based informationI the depth of lo$alt$ is no deeper than mere performance.

Affecti(e loyalty At the second phase of lo$alt$ de#elopment, a liking or attitude to%ard the brand has de#eloped on the basis of cumulati#el$ satisf$ing usage occasions, %hich reflects the pleasure dimension of the satisfaction !ommitment.

Cogniti(e loyalty 'he next phase of lo$alt$ de#elopment stage %hich influenced b$ repeated episodes of positi#e affected to%ard the brand. 'his commitment is to the intention to rebu$ the brand

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and is more akin to moti#ation.

Action loyalty &tud$ of the mechanism b$ %hich intentions are con#erted to actions is referred to as Kaction controlK <Duhl B .eckmann, *972=. 'he action control paradigm proposes that this is accompanied b$ an additional desire to o#ercome obstacles that might pre#ent the act. 'his engagement is repeated, action inertia de#elops, thereb$ facilitating repurchase.

'%7 Hypot*esis -t is h$pothesi(ed that the fi#e strategies module of experiential marketing %ould positi#e impro#e the relationship bet%een firms and customers. .ut Ho% &tarbucks has emplo$ed the theoretical concepts of experiential marketing in promoting their productsH 'he follo%ing is the h$pothesis of this stud$,

!ustomer satisfaction affects the customer lo$alt$. :i#e senses and customer satisfaction ha#e positi#e correlation.

-n ans%ering the abo#e h$pothesis, the researchers %ill examine %hether &tarbucks %orked %ell on relationship bet%een firms and customer. :urthermore, it is h$pothesi(ed in

19

the current research that the fi#e strategies module of experiential marketing %ill help &tarbucks expand customers and re#enue.

C*apter T*ree Met*odology

)%$ Sub8ect 'he purpose of our case stud$ is to examine ho% experiential marketing hasbeen %orking for &tarbucks. 'he stud$ %as designed to test %hether customer satisfaction affects customer lo$alt$, and %hether fi#e senses and customer satisfactionare related.

)%' Procedure
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'he >uestionnaire %as posted on :ree +nline &ur#e$ Luestionnaires 6esearch %ebsite. 'he >uestionnaire %as in !hinese. Within t%o %eeks, *;; #oluntar$ respondents completed the >uestionnaire online. We onl$ accept >uestionnaires from people %ho ha#e been to &tarbucks and purchased because it8s for sure that the$ had experience the ser#ices personall$ from &tarbucksI thus, the sub@ect of this stud$ %as insured. And four >uestionnaires %ere discarded because their responses to one of the >uestions indicated that the$ had ne#er catered &tarbucks. 'his >uestionnaires sur#e$ %as carried out from :ebruar$ 0*st to arch 1th.

)%) Material 'he >uestionnaire includes four sections, each of %hich contains three to eight >uestions according to its categories , &ection one asks respondents basic demographic information, such as age, profession, gender. &ection '%o contains >uestions addressing respondents8 fi#e senses to%ard &tarbucks adapted from &chmitt8s fi#e strategies module of experiential marketing <see figure *=. &ection three and &ection four tapped customer satisfaction and customer lo$alt$.

)%+Statistical Treat/ent &tatistical anal$sis of correlation bet%een chosen #ariables based on h$pothesis %as tested b$ correlation coefficient. :inall$, regression anal$sis %ill detected the predictabilit$ of data

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to pro#e the abo#e interpretations.

CHAPTER 3O#R "ATA A A.9S!S

'he purpose of this stud$ is to in#estigate ho% Experiential

arketing has been

%orking for &tarbucks. A total of *;; #alid >uestionnaires %ere completed respond on-line. 'he >uestionnaires %as base on &chmitt8s theor$ in *999, and the >uestionnaires %as applied to measure %hether Experiential arketing %ork on &tarbucks for the participants.

'he sur#e$ use &P&& statistics *5.;. 'here included three sections, first section use
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6eliabilit$ &tatistic anal$sis to the reliabilit$ of the research structures and pro#ides the e#idence of correlationI second section use Descripti#e &tatistic to anal$sis the sample of >uestionnaires. 'hird section use !orrelation &tatistic and Aggression &tatistic to test h$pothesis.

+%$ Reliability Analysis 'he purpose of reliabilit$ anal$sis is to test the reliabilit$ of the research structures, and it also pro#ides the e#idence of correlation. 'o sum up, the correlations bet%een the same groups of participants in the same >uestionnaires %ould ha#e the same result, if the timing and fre>uenc$ are different. -n this research, the !ronbach8s M is the coefficient to exam the internal correlation and to comprehend the reliabilit$ and satiabilit$. -f the !ronbach8s M is higher, it means the correlation of the >uestions in the >uestionnaire is higher. -t also means the internal correlations tend to%ard consistenc$. 'he scholars ha#e different opinions about ho% big is the #alue of !ronbach8s M %ill be defined as high reliabilit$. ?unnall$*957, a scholar, %ho defined M ;.5 is lo% but acceptable boundaries #alue. -n the other hand, Auielford*942, a scholar, defined that if M bigger than ;.5, it means the reliabilit$ is highI -f M is bet%een ;.5 and ;./2 means it is moderate reliabilit$I if the is lo%er than ;./2 means the reliabilit$ is lo%.

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-n this 6eliabilit$ Anal$sis <see table 1.*=, purchase experiences #ariable of !ronbach8s internal correlation, &ense M N .7;*, Act M N .52;, 'hink M N .547, :eelN .701, 6elateN . 727. !ustomer satisfaction #ariable of !ronbach8s internal correlation, M N .7/4, !ustomer lo$alt$ #ariable of !ronbach8s internal correlation, M N .790. 'he result sho%s that the >uestionnaire is internal correlation and reliabilit$.

Reliability Analysis 3ariables &tages ?o. Luestion 6eliabilit$ <!ronbach8s Alpha= .7;*

&ense

*. 0. /. 1. 2. 4.

'he interior design in &tarbucks makes me feel comfortable. 'he Ca(( music in the &tarbucks store makes me feel good. 'he coffee aroma in &tarbucks makes me feel relax. 'he drinks in &tarbucks taste good. 'he food in &tarbucks delicious. - feel it is considerate that &tarbucks put a corrugate paper %ith the hot drink and tissue for cold drink. &tarbucks affect me the fre>uenc$ of drinking coffee. :or me &tarbucks coffee means good coffee. - feel pleasant %hene#er - go to &tarbucks so - like to go to

Act

*. 0.

.52;

Purchase Experiences

/.

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&tarbucks. 'hink *. 0. - feel the design of the light in the store is %arm. 'he &tarbucks logo makes me think of the entrepreneur is ecofriendl$. 'he coffee bean that &tarbucks use arouses me the curiosit$ of coffee. 'he ser#ice of &tarbucks is better than %hat - expect. -t is ne% for me that %e can ad@ust our coffee as a &tarbucks8 customer. 'he music in &tarbucks make me think about the happiness. 'he seat is comfortable in &tarbucks. - feel the attitude of the staff in &tarbucks is nice. - feel the atmosphere in &tarbucks is %arm. - feel it is fast to pa$. - feel the design of the light in the store is %arm. - feel that &tarbucks coffee is real coffee. When people mentioned about the coffee chain stores, the priorit$ store - %ould think about is &tarbucks. &tarbucks is part of m$ life. - think people %ho shop in &tarbucks ha#e the same taste. - think the b$products of &tarbucks are fashion and tasteful. - usuall$ follo% information of
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.547

/. 1. 2.

4. :eel *. 0. /. 1. 2. 6elate *. 0.

.701

.727

/. 1. 2. 4.

Purchase Experiences

&tarbucks. 5. 7. !ustomer &atisfaction * 0 / 1 !ustomer Lo$alt$ *. 0. /. 1. 2. - %ant to @oin fan8s club on :acebook. - %ant to participate in the coffee lecture. Assistants8 help in &tarbucks can al%a$s meet m$ expectation 'he products in &tarbucks can al%a$s meet m$ expectation. 'he product that - bought in &tarbucks is reall$ %orth it. - feel &tarbucks is a s$mbol of great ser#ice - feel &tarbucks is better than other coffee shop. &tarbucks is the priorit$ choice %hen - %ant to bu$ coffee. &tarbucks is m$ onl$ choice of bu$ing coffee &tarbucks8 product %orth to bu$ again and again. - bought the membership card and using the bonus to exchange the free gift. - collect &tarbucks8 b$-products - recommend m$ friends to go to &tarbucks. 'able 1.* .790 .7/4

4. 5.

+%' "e/ograp*ic (ariable Descripti#e &tatistic use #alid sample to test percentage and fre>uenc$ distribution of demographic #ariable and %hich are basic statistic anal$ses the sample distribute and structures.
26

'he sur#e$ <see 'able 1.0= %as made up of 22 males <21.14O= and 14 female <12.21O=.'able 1.0 re#eals that most participants %ere in their t%enties <51.04O=, students <49./*O=.

3re:uency "istribution of "e/ograp*ic ,ariable 3ariable Aender Age ale :emale "nder *1 *2-*9 0;-01 02-09 /;-/1 /2-/9 1;-11 +#er 12 +ccupation "nemplo$ed &tudent Public-ser#ice 'echnolog$ !ommercial -ndustr$ &er#ice +thers
'able 1.0

!ategor$

:re>uenc$ 22 14 ; 0 52 *1 9 ; ; * / 5; 1 5 7 1 2

Percentage 21.14 12.21 ; *.97 51.04 */.74 7.9* ; ; ;.99 0.95 49./* /.94 4.9/ 5.90 /.94 1.92

+%) Testing *ypot*eses

H*. :i#e senses and customer satisfaction ha#e positi#e correlation 'he second h$pothesis test %hether the fi#e senses <feel, think, sense, act, relate= and

27

customer satisfaction ha#e related positi#el$ 'he results of a regression anal$sis sho% that the fi#e senses together predict customer satisfaction #er$ %ell, FN*;2.4/2, p P .;;* <see 'able 1./=.&econd results of regression anal$sis sho% that the four senses <feel, think, sense, act= together predict customer satisfaction, :N7;./79, p P .;;* <see 'able 1.1=. 'hird results of regression anal$sis sho% that relate predict customer satisfaction, :N*07.59;, p P .;;* <see 'able 1.2=.

A O,Ab odel * 6egression 6esidual 'otal &um of &>uares 0*.97* *9.547 1*.519 df * 92 94 ean &>uare : &ig. .;;;a

0*.97* *;2.4/2 .0;7

a. Predictors, <!onstant=, fi#e senses b. Dependent 3ariable, mean satisfaction 'able1./

A O,Ab odel * 6egression 6esidual 'otal &um of &>uares *9.*/2 00.4*/ 1*.519 df * 92 94 ean &>uare *9.*/2 .0/7 : 7;./79 &ig. .;;;a

a. Predictors, <!onstant=, four senses b. Dependent 3ariable, mean satisfaction 'able 1.1

28

A?+3Ab odel * 6egression 6esidual 'otal &um of &>uares 01.;04 *5.50/ 1*.519 df * 92 94 ean &>uare : &ig. .;;;a

01.;04 *07.59; .*75

a. Predictors, <!onstant=, mean related b. Dependent 3ariable, mean satisfaction 'able 1.2

'he table 1.4 sho%s the result of a agression %hich compare of the three items, the fist item is four senses<feel, think, sense, act= together predict customer satisfaction, :N7;./79. ?ext item is fi#e senses <feel, think, sense, act, relate= together predict customer satisfation, :N*;2.4/2.'he final item is relate predict customer satisfaction, :N*07.59;. :rom : #alue of the regression anal$sis, researchers found that relate has more positi#e correlation %ith customer satisfaction than fi#e senses. .ase on &chmitt8s theor$, People %ere got together to a group b$ &tarbucks %hich is different from another group. :rom >uestionnaires, there ha#e high agreement about that E&tarbucks is parts of m$ lifeFI E- think people %ho shop in &tarbucks ha#e the same taste.F -t means that relate pla$ an important role in Experiential satisfaction. H* :i#e senses and customer satisfaction ha#e positi#e correlation is accepted. arketing means that relate is more positi#e influence customer

29

Analysis of regression
Predictors ; "ependent ,ariable
3

Sig%

:our senses and !ustomer satisfaction :i#e senses and !ustomer satisfaction 6elate and customer satisfaction

7;./79 *;2.4/2 *07.59; 'able 1.4 P P;.;;*

H0. !ustomer satisfaction affects the customer lo$alt$. 'he first h$pothesis states that customer satisfaction affects customer lo$alt$. With an anal$sis of correlation, the results sho% that the t%o #ariables ha#e a positi#e correlation, r N .452, p P .;;*. 'hat is, the t%o #ariables increase or decrease together <see 'able 1.5=

Correlations mean satisfaction mean satisfaction Pearson correlation &ig. <0tailed= ? mean lo$alt$ Pearson correlation &ig. <0tailed= ? 95 .452QQ .;;; 95 95 * mean lo$alt$ .452QQ .;;; 95 *

QQcorrelation is significant at the ;.;* le#el <t%o-tailed= 'able 1.5

30

CHAPTER 3!,E "!SC#SS!O A " CO C.#S!O

'he research focused on consumers8 satisfaction, consuming experience and customer satisfaction to &tarbucks as the main sub@ect. 6esearchers %ill make conclusion %hich based on the data anal$sis in chapter four and gi#e direction to future research.

1%$ "iscussion

'he &chmitt8s experiential marketing strateg$ indicates customer satisfaction and made consumers lo$alt$ further. 'herefore, &E s <&trategic Experiential marketing, customer satisfaction and lo$alt$ are positi#e correlation. odules= of experiential

H$pothesis H*, :i#e senses and customer satisfaction ha#e positi#e correlation. H0, !ustomer satisfaction affects the customer lo$alt$.

accepted

+ur research found that &chmitt8s 2-&tages Experiential

arketing &trateg$ and

31

customer satisfaction ha#e positi#e correlation. According to &chmitt8s experiential marketing strateg$ definition, there are fi#e stages about &ense, :eel, 'hink, Act, and 6elate. 'he researcher separated them into t%o parts. +ne isEPercepti#e experienceF including &ense, :eel and Act. 'he other one isEPs$chical experienceF including 'hink and 6elated. All of these customer experiences can make satisfaction e#en affects lo$alt$. A. Percepti#e experience About customers8 attitude to%ard &tarbucks, if customers8 lack of recognition for &tarbucks, the$ ma$ purchase products of other coffee chains. +n the other hand, if customers8 attitude to%ard &tarbucks is good, the purchasing beha#ior is easier to be influenced.

..

Ps$chical experience -n according to the stud$ of .ennett et al <0;;2=, he thought EemotionF is a factor %hich

is more important than per#ious recognition to commercial bu$ing beha#ior. -t also results consistent in purchasing beha#ior to customers8 brand lo$alt$ Sense &ense is a strong image of a brand to keep strong emotions. Expect home and %ork place, &tarbucks is the third place to go %ithout an$ pressure, &o it definitel$ increases customers8 satisfaction. 3eel

32

Aood ser#ice such as music, decoration and atmosphere creates good feelings on customers T*ink &tarbucks attracts consumers b$ acti#ities offering and arouse consumers8 association. -t8s helpful no matter the association ha#e positi#e correlation or not. Act &tarbucks can induce consumers to change their lifest$le to participate in &tarbucks and build long-term relationship %ith &tarbucks. Relate People are getting together to be grouped b$ &tarbucks %hich is different from other groups of customers and it also sho%s people identif$ the culture #alue and products of &tarbucks. And then raises customers8 lo$alt$.

Anal$sis of regression Predictors B Dependent 3ariable :i#e senses and !ustomer satisfaction :our senses and !ustomer satisfaction : *;2.4/2 7;./79 P P;.;;* &ig.

Relate and custo/er satisfaction

$'6%57<

'he :i#e senses expect 6elate is about personal experience, but if &tarbucks satisfies

33

customers8 sense of 6elate, the personal experience of customers %ith &tarbucks is not onl$ created, but &tarbucks also group their customers %hich is different from other coffee chains8 customers. &o it8s a sense of belonging in the same group of &tarbucks if &tarbucks satisfies customers8 sense of 6elate. 'he result indicated that Econsuming experienceF and Ecustomer satisfactionF ha#e positi#e correlation. -t also represented customers recogni(ed &tarbucks more, and the le#el of customer lo$alt$ increased as %ell. 'he sense of 6elate affects customer satisfaction the most. All the result about fi#e senses and customer satisfaction has positi#e correlation. Especiall$ our research found that so long as &tarbucks satisfied customers8 sense of 6elate of :i#e senses and the effect to satisfaction surpasses the effect of the rest senses to satisfaction. E#en the rele#anc$ of 6elate to &tarbucks is be$ond the rele#anc$ of fi#e senses to satisfaction.

1%' 3uture Suggestion A. Adopt +ther &ampling techni>ue 'he research onl$ adopted con#enience sampling and >uestioned the participants on the -nternet to collected data. 'herefore, choosing other rigorous sampling like stratified random sampling to approximate normal distribution for a sufficient large sample si(e on future research.

34

.. ?e% Logo for &tarbucks &tarbucks changed its logo and infuriate their lo$al customers. Emotions affect

consumer beha#ior so it8s an unkno%n #ariable %hether the ne% logo ma$ change customers8 sense to%ard &tarbucks %hich the$ had alread$ kno%n. And %ithout brand name lettering, if &tarbucks can still make customers fast linking to %hom the$ are and %hat the$ sell. 'his issue can be a direction for future research.

35

Reference
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+li#er, 6. L. <*999=. Whence consumer lo$alt$H Cournal of

arketing, 4/, //-/1.

6eichheld, :.:. and P. &chefter <0;;;= SE-lo$alt$, Rour &ecret Weapon on the Web,8 !ar"ard #usiness Re"iew, Cul$-August, pp. *;2-**/. !hiouBC$h-&hen <0;;*=. trategic marketing anal$sis% Framework and practical applications. 'aipei, .est%ise. Dotler, P. <0;;/=. arketing anagement. ?e% Cerse$, Pearson Education 6eichheld, :.:. <0;;/=. 'he one number $ou need to gro%. Har#ard .usiness 6e#ie%, 7*, 1421. 'hompson !. C. <0;;1='he &tarbucks .randsacpe And !onsumersG Experiences of

36

Alocali(ation. Journal &f Consumer Research,'(,4/*-410. Liu-&. . <0;;4=. ?o accounting for taste. Marketing )eek*05-07 "D, .ritish librar$ serials. .rock, D. .<0;;5= 6eplication strategies, kno%ledge and attention, a stud$ of coffee chains , Journal of Emeraldinsight, (+ ,/, /59-/99. Hauser., E. <0;;5=. .rand%eek, Experiential Marketing. !anada, &%i#el +lsen. &. + <0;;5= Ps$cholog$B and atisfaction,01,1. edia.

arketing, 6epurchase Lo$alt$ % The Role of ,n"ol"ement

R"-&HE?A L-. <0;;5= A &tud$ of .randing Experiential 'aichung.

arketing Appl$ in !offee Estate,

Dainora Arunde$ <0;;7= Experiential arketing #s. 'raditional arketing, !reating 6ational and Emotional Liaisons %ith !onsumers, The Romanian Economics Journal, -+,*//-*20 &tra(dina A.<0;;9= Experiential marketing . entertaining e"ents or a crucial part of the marketing mix, -. &,unpublished doctoral dissertation. att Hein( <0;*;= !ustomer lo$alt$ -s Rour "ltimate !ompetiti#e Ad#antage. .ilogging in -nno#ation. 6etrie#ed December 00,0;*;, 6etrie#ed from http,TT%%%.business-strateg$inno#ation.comT0;*;T;/Tcustomer-lo$alt$-is-$our-ultimate.html .ennett, 6., !. E. C. HJrtel, and C. 6. c!oll-Denned$ <0;;2=, EExperience as a oderator of -n#ol#ement and &atisfaction on .rand Lo$alt$ in a .usiness-to-.usiness &etting ;0/*16.F -ndustrial arketing anagement, ?o./1, pp.95-*;5. &te#en PinkerI Ho% the mind %orksI PenguinI *995I p 109

Attac*/ent 3igure $% Sc*/itt0s fi(e strategies /odule of experiential /arketing

37

Sense

Appeals to t*e senses =it* t*e ob8ecti(e of creating sensory experiences> t*oug* sig*t> sound> touc*> taste and s/ell% Appeals to custo/er0s inner feelings and e/otions> =it* t*e ob8ecti(e of creating affecti(e experiences t*at range fro/ /ildly positi(e /oods linked to a brand to strong e/otions of 8oy and pride% Appeals to t*e intellect =it* t*e ob8ecti(e of creating cogniti(e> proble/2 sol(ing experiences t*at engage custo/ers creati(ely% Enric*ing custo/ers0 li(es by targeting t*eir p*ysical experiences> s*o=ing t*e/ alternati(e =ays of doing t*ings> alternati(e lifestyle and interactions% Appeals to t*e indi(idual0s desire for self2i/pro(e/ent% T*ey appeal to t*e need to be percei(ed positi(ely by indi(idual ot*ers% T*ey relate t*e person to a broader social syste/%

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41