1. Marketing & Services Management
MSc
Marketing & Services Management
Consumer Value & Experiential Marketing
Dr. Weiyue (Jimmy) Wang

2. Lecture Objectives To understand: consumer personal value
social influences
consumer segments
experiential marketing
empirical academic studies

3. Consumer Personal Value
Consumers’ personal values and social influences play significant roles in product evaluation and purchase behaviour (Zhou and Wong 2008, Pepper et al. 2009, Darley et al. 2010)
Personal values is defined as an enduring belief that a specific mode of existing conduct is personally and socially preferable to an alternative mode of existing conduct (Rokeach,1968).

4. Social Influences on Consumer Behaviour
On social influences side, based on the social compliance and normative influence theories (Bearden et al. 1989, O’Cass and McEwen 2004), peer or reference people represents an actual or imaginary group that have significant relations to an individual’s evaluations and behaviour.

5. An Academic Research
Animosity and Willingness to Buy Foreign Products: The Moderating Effects of Materialism and Susceptibility to Normative Influence 5

6. CET and Animosity
Consumer ethnocentrism (CET): the beliefs held by consumers about the appropriateness, indeed morality, of purchasing foreign-made products’ (Shimp and Sharma 1987)
The central tenet of CET is that consumers with stronger CET distinguish domestic products from foreign/imported products and try to avoid buying foreign products
Ethnocentric consumers tend to believe that purchasing foreign products harms the domestic economy and it is immoral to buy them
Animosity: remnants of antipathy related to previous or ongoing military, political, or economic events (Klein et al., 1998)

7. The Existing Framework
Consumer ethnocentrism
Product judgement
Willingness to buy foreign products
Economic animosity
War animosity 7

8. An Expanded Framework Materialism
Centrally held consumer belief about the importance of possessions in one’s life (for example, pleasure and happiness) (Belk 1985)
A mind-set or constellation of attitudes regarding the relative importance of acquisition and possessions of objects in one’s life’ (Richins and Dawson 1992, p. 307).
Susceptibility to Normative Influence (SNI): the tendency to live up to the expectations of others (Bearden et al. 1989, Batraet al. 2001)
SNI is driven by the desire and need to maintain and enhance self-image through identification with a reference group and by adopting its behaviour or opinion

9. The Expanded Framework
Consumer ethnocentrism
Product judgment
Willingness to buy
Economic animosity
War animosity
Susceptibility to normative influence
Materialism 9

10. Source: Luo, 2005, Journal of Consumer Psychology
Shopping with others…
How does shopping with others influence impulsive purchasing
Sample: undergraduates for two experiments
The presence of peers increases the urge to purchase but the presence of family members decreases it
Moderator: participants are more susceptible to social influence and the group (peers or family) is more cohesive
Source: Luo, 2005, Journal of Consumer Psychology

11. Consumer Segmentation
Need
Behaviour
Characteristic

12. Experiential Marketing
Customers’ developing recognition of and purchasing goods or services from a company or brand after they experience activities and perceived stimulations (Schmitt, 1999)
Tangible products to intangible services
Companies should focus not only on products/services they sell but also on an entire experience that they create for customers (Yuan & Wu, 2008)

13. Traditional Marketing
Features and benefits
Traditional
Marketing
Narrow definition of product category and competition
Method are analytical,
quantitative and verbal
Customers are rational decision-makers
Source: Schmitt, 1999

14. Experiential Marketing
Customer Experience
Consumption is a holistic experience
Methods are eclectic
Experiential Marketing
Customers are rational and emotional animals
Source: Schmitt, 1999

15. Strategic Experiential Modules
Strategic Experiential Modules include
Sensory experiences (SENSE)
Affective experiences (FEEL)
Creative cognitive experiences (THINK)
Physical experiences, behaviours and lifestyles (ACT)
Social-identity experiences (RELATE)
Schmitt, B Experiential Marketing, Journal of Marketing Management, 15,

16. Empowerment Structural or relational approach of empowerment
management practices and activities that seek to give more power to the employee
Motivational or psychological approach of empowerment
employee’s cognitive beliefs or perceptions of being empowered 16

17. Psychological Empowerment
A motivational sense that enhances feelings of self-efficacy among organizational members (Conger and Kanungo,1988)
A motivational construct manifested in four cognitions: meaning, competence, self-determination, and impact (Spreitzer, 1995)
Meaning
Competence
Self-determination
Impact 17

18. What we have achieved? Consumer segmentation Consumer values
Social influences on consumer buying behaviour
Direct and indirect effects on consumer decision making
Consumer segmentation
Experiential Marketing
Components of Experiential Marketing (Schmitt, 1999)
Empirical studies