Why do customers love MUJI? Applying experiential marketing to brand loyalty 9631507 陳思瑜 9631509 林郁芬 9631516 江奕萱 9631524 朱良敏 9631534 吳宜珊

Content 1 Research motivation and purpose 2 Introduction of MUJI 3 Literature review 3 Methodology 4 Analysis and conclusion 5

Research motivation Customer satisfaction surveys and how to win the customer’s hearts. How to raise customer satisfaction and loyalty? we choose MUJI to research.

Research purpose MUJI is quite different from “Working House” in quality, design, and simplicity. “MUJI”, the cultural and creative product in Taiwan, and attract young people. We would use Schmitt five SEMs (strategic experiential model)

Introduction of MUJI MUJI represent of the meanings is “good things without brand”. MUJI’s concept is “not waste and simple”. Life style store: The merchandise choice of MUJI take "provide a daily life usage”. MUJI’s life advocacy is simple, nature and quality. Consumers feel not only “This is very good”, but also “This is what I want!”. Consumers can publish their own design creativity through the website.

Good intention of life

MUJI COFFEE

MUJI’s Ad (1/2)

MUJI’s Ad (2/2)

Why do customers love MUJI? Price price is reasonable. Quality promise this quality above the price. Design less is more. Intermediate level customer. MUJI can provide reasonable price in the right time, and let the customer enjoy the daily necessities of quality and taste. Customer positive

Find your MUJI Bean bag sofa

Find your MUJI CD player hanged on wall

Find your MUJI Hand lamp

Literature review Experiential Marketing Schmitt (1999) describes the experiential marketing process as: “sense, feel, think, act, and relate”. Brand Loyalty Dimension Measurement Relevant Literature Behavior Behavior of public praise Chaudhuri, et al. (2001) Attitude Loyalty of Self-cognitive

Experiential marketing SENSE creating sensory experiences through sight, sound, touch, taste and smell. FEEL marketing appeals to a customers’ inner feeling and emotions. THINK targets customers’ potential thinking through surprise, intrigue and provocation. ACT create customer experiences related to the physical body, longer-term patterns of behavior and lifestyles. RELATE customers could be influenced by reference groups when they are making decisions.

Methodology We have five independent variables: “SENSE”, “FEEL”, “THINK”, “ACT”, “RELATE” We have one dependent variables: brand loyalty. Sense experience( X1) Feel experience(X2) Think experience(X3) Act experience(X4) Relate experience(X5) Brand loyalty (Y)

Hypothesis SEMs has significant positive effect to brand loyalty H1: Sense has significant positive effect to brand loyalty H2: Feel has significant positive effect to brand loyalty H3: Think has significant positive effect to brand loyalty H4: Act has significant positive effect to brand loyalty H5: Relate has significant positive effect to brand loyalty

Descriptive Statistics Number of valid samples : 63 Sampling place : Hsinchu FE21 Sampling method : convenience sampling and recycles on the scene.

Descriptive Statistics

Descriptive Statistics consumer behavior variables

Descriptive Statistics consumer behavior variables

Pearson Correlation Coefficient All of the 5 factors are positive to brand loyalty. Sense Feel Think Act Relate Brand Loyalty 1.000 .595 ** .556 .489 .416 .491 .634 .622 .680 .620 .566 .662 .625 .667 .651 .661 *P < 0.05, **P < 0.01

Regression Analysis R-square is 0.567 *P < 0.10, **P < 0.05 Unstandardized Coefficients Standardized Coefficients t P- value B Std. Error Beta (Constant) -.751 .580 -1.294 .201 Sense .132 .184 .083 .715 .477 Feel .191 .224 .119 .856 .396 Think .267 .178 .195 1.499 .139 Act .359 .169 2.122 .038 ** Relate .289 .170 .239 1.693 .096 * R-square is 0.567 *P < 0.10, **P < 0.05

Reasons customers love about MUJI In act factor we find customers will take action about thinking of their way of living.

Reasons customers love about MUJI They are willing to recommend MUJI’s products and services to others and make the repeat purchasing.

Conclusion In our study, the relationship between action of SEMs and brand loyalty is the most significant. The action experiences are as follows: Customers can use the branded credit card, to get discount when buying MUJI product. New activity “SO, I SEE!” (原來如此), as MUJI from the daily life of small found to develop products, and MUJI also hope customers to vote and share the endorsement of MUJI delicate design.

Conclusion The acrylic pitcher is the NO.1 of the “SO, I SEE!” election activity. basket straight-grip Through this activity people vote the product that they like most and leave the comment. MUJI will select 20 people to give them gift that MUJI Japan limited.

Conclusion In the business, the life style became the tool that can increase sales to the target customers, and they could diligently let products to fit consumer's anticipation. MUJI diligently pondered how to balance the subject between new products’ development and save earth from destroy, since it has been established. MUJI uses organic cotton which comes from Turkey, and the cotton all grows above three years has not employed the agricultural chemicals or the chemical fertilizer paddies. This action reveals MUJI brand spirit fully—be kind to earth.

THANK YOU!!

Questionnaire Design The questionnaire of this study refers to the measurement of Schmitt (1999) Table 3 Assessment Tools for Experiential Marketing Sense The (ExPro) tries to engage my senses. (+) The (ExPro) is perceptually interesting. (-) The (ExPro) lacks sensory appeal for me. (-) Feel The (ExPro) tries to put me in a certain mood. (+) The (ExPro) makes me respond in an emotional manner. (+) The (ExPro) does not try to appeal to feelings. (-) Think The (ExPro) tries to intrigue me. (+) The (ExPro) stimulates my curiosity. (+) The (ExPro) does not try to appeal to my creative thinking. (-) Act The (Expro) tries to make me think about my lifestyle. (+) The (ExPro) reminds me of activities I can do. (+) The (Expro) does not try to make me think about actions and behaviors. (-) Relate The (Expro) tries to get me to think about relationships. (+) I can relate to other people through this (ExPro). (+) The (ExPro) does not try to remind me of social rules and arrangements. (-)

Questionnaire Design The questionnaire of this study refers to the measurement of Aaker (1991) Table 4 The variable of brand from Aaker (1991) aspect Brand Loyalty I was satisfied/ dissatisfied with last purchasing experience. I be willing to purchase this product again. This brand is the best brand I have ever seen./ is the better one in two kind of products I have ever purchased./ is the best one in three kinds of products I have ever purchased. I be willing to promote this product to others.

Questionnaire Design We use Schmitt experiential marketing and have five questions each aspect. Thus, we all have 25 questions . Especially the question 5, 10, 15, 20 and 25 are reverse questions. We also use Likert scale. The format of a typical five-level Likert item is: strongly disagree, disagree, neutral, agree, and strongly agree. We use one of the aspects from Aaker research and have three questions still use Likert scale.

Questionnaire Assessable aspect items Sense experience Quality of MUJI of merchandises is really good. Merchandises of MUJI are simple but design to let you like them. Brand of MUJI and the label let you have deep impression. The atmosphere, the music, and the overall shopping environment of the MUJI shop let you feel joyfully satisfies. The whole performance of MUJI lacks the demand of feeling. Feel experience The environment of MUJI let me have warm feelings. The service attitude of MUJI lets me satisfy, receive the respect. The non-brand meaning of MUJI makes me in a stew. The commodity of MUJI lets people feel that is in keeping with the fashion. The whole performance of MUJI has not affected my mood response Think experience MUJI’s product can simulate my curiosity. MUJI’s product can make me feel surprising. MUJI’s product can simulate me the thinking of other related thing, like lifestyle and environmental protection …etc. MUJIs product can simulate my imagination. MUJI’s products never simulate my creative thinking. Act experience I would like to join the MUJI’s net community. MUJI holds special theme events attract me to participate. MUJI reminds me of activities I can do. MUJI tries to make me think about my lifestyle. MUJI does not try to make me think about actions and behaviors. Relate experience MUJI causes me to establish the relations with the others. The MUJI products can cause between me and friend's discussion. MUJI enables me to have the sense of belonging to the company. MUJI causes me to associate own social activity arrangement. MUJI doesn’t let me receive identification with social.

Questionnaire Assessable aspect items Brand Loyalty I won’t buy other similar brand because it has lower price than MUJI. I will buy MUJI products next time. I will recommend MUJI products or service to other people.