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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 Ming Chuan University who herein her expertise and always provide support and opinion for our study at the leisure time, and with her professional skill and experience shared for us. Her valuable suggestions helped all of us to apply and comprehend the theories and help us to get more details for our paper. Starbucks is the top to become the most famous coffee chain store in the minds of customers. These researchers attempt to find out why Starbucks has been able to gain a lead in coffee chains. This research aims at verifying that the experiential marketing is not only a theory, but a practical strategy which can help an international coffee chain stabilize the repurchasing rate of customers and reach operational success. 1 Table of contexts Abstract…………………………………………………………………………….......1 Chapter One: Introduction 1.1 Background…………………………………………………………………….3 1.2 Motivation……………………………………………………………………...4 1.3 Purpose of This Study………………………………………………………….5 1.4 Value of This Study……………………………………………………………6 Chapter Two: Literatures review 2.1Coffee Chains…………………………………………………………………..7 2.2Marketing Strategies…………………………………………………………....7 2.3Customer Relationship Management…………………………………………...8 2.4Schmitt’s 5-Stages Experiential Marketing Strategy…………………………...8 2.5 Consumer Behaviors Analysis……………………………………………........14 2.6 Customer Satisfaction………………………………………………………….15 2.7 Customer Loyalty……………………………………………………………...16 2.8 Satisfaction Affects Loyalty…………………………………………………...16 2.9 Hypothesis……………………………………………………………………..19 Chapter Three: Mythology 3.1 Participants…………………………………………………………………….21 3.2 Procedure………………………………………………………………………21 3.3 Material………………………………………………………………………...22 3.4 Statistical Treatment …………………………………………………………..22 Chapter Four: Data Analysis 4.1 Reliability Analysis…………………………………………………………….23 4.2 Demographic variable………………………………………………………….27 4.3 Testing hypotheses ......................................................................................…...28 Chapter Five: Discussion and Conclusion 5.1 Discussion………………………………………………………….…………..32 5.2 Further Suggestion………………………………………………………….….35 References Attachment1 2 CHAPTER ONE INTRODUCTION 1.1 Background In recent years the growth of coffee shops has been accelerating in Taiwan. According to TCFA statistics, there were between 5,800 and 6,000 coffee shops in each county of Taiwan in 2005. However, more and more coffee chains such as Starbucks, Is Coffee, Ikari and Dante have established their distinct features. Coffee chain stores have resorted to effect gathering, selecting, using and retaining the relevant knowledge from the varied types of internal stakeholders and external sources to become more competitive (David, 2007). Furthermore, relation between coffee chains marketers and customers is getting closer today. Transactional marketing or benefits marketing, focuses on price competition and individual transactions (Strazdina, 2000). Coffee marketing environment is changing. Marketers have been using scientific strategies to determine their marketing strategy. Experiential marketing emphasizes customers’ action in marketers’ strategy making. 3 Figure1.1: The flow chart of research processes In this research, the first step is to define the focus of the study. The second is an attempt to review literatures on experiential marketing. Following the review is design of questionnaires. Finally, data collected will be analyzed to explore how Starbucks influences purchasing behavior of customers. 1.2 Motivation Experiential marketing is a study of the gap between the intended effect and actual response of customer. Starbucks uses experiential marketing as a case example to affect customer loyalty in their products (Li, 2007,). In recent years, coffee has gradually accounted for a larger percentage in beverage market. More and more coffee chain stores are around in 4 the city to form fierce competition. Those coffee shops have lots in common. When it comes to coffee chain store, what comes to mind for most people is a goddess image, the logo of Starbucks. Starbucks has made it to the top to become the most famous coffee chain store in the minds of customers. It might be easy to name a couple of reasons behind the success of Starbucks, such as nice store design and good advertising programs. However, it is believed that the success of Starbucks is not quite straight forward as it seems. These researchers attempt to find out why Starbucks has been able to gain a lead in coffee chains. Nowadays, society is a huge experiential machine. The goods should contain the elements of experience and the process of shopping also needs (Liou, 2004). The pleasant experience through shopping process is the major trend of the marketing in the future. Experience is the result of a certain product brings out people’s identity of that product and it can totally show their style and taste. In sum, the Experiential Marketing helps the marketer to demonstrate their style and taste and it is going to be the essential marketing strategy in the future. 1.3 Purpose of This Study Experiential marketing is an interaction among customers, marketing team, and products. It’ not based on traditional expectation. 5 What has been created is true brand loyalty from customer to gain the ultimate competitive advantage (Reichheld and Schefter, 2000). There is little information available on how experiential marketing is directly related to the coffee chain store Starbucks. Most of the research conducted previously on Schmitt’s experiential marketing is related to hospitality. To minimize the selected range by focusing on the operation of Experiential Marketing in one chosen coffee chain store, Starbucks, the other coffee chain stores have been excluded in our research. The purpose of this research is to explore the relationship between the reasons for customers’ loyalty to Starbucks and the theoretical concepts of Schmitt’s experiential marketing so as to determine whether experiential marketing can be used to explain Starbucks’ success. 1.4 Value of This Study The trend in experiential marketing has broken away from the traditional marketing strategies to create a new relationship between customers and marketers (Grundey, 2008). The key concepts of experiential marketing are to include customers in decision making and put customers as the focus in strategies forming. This research aims at verifying that the experiential marketing is not only a theory, but a practical strategy which can help an international coffee chain stabilize the repurchasing rate of customers and reach operational success. 6 CHAPTER TWO LITERATURE REVIEW 2.1 Coffee Chains Each Starbucks chain insists on giving consistent quality service. According to studies, coffee chains have enabled the creation of large numbers of similar outlets that deliver relatively standardized products and services in an efficient way (David, 2007). Coffee chain means that every coffee shop of the organization carries the same products and services. People can visit any coffee shop of the organization and enjoy the same products. The key to competitiveness is to effectively gather, select, use and retain the relevant knowledge from various types of internal stakeholders and external sources (David, 2007). The success of the coffee chain is that they integrate the internal and external sources. 2.2 Marketing Strategies A marketing plan contains a set of specific actions required to successfully implement a marketing strategy. Marketing strategy determines the choice of target market segment, positioning, marketing mix, and allocation of resources (Peter & James, 1987). Once 7 relationship marketing starts to become a trend, many try and offer to provide a framework for it, and most of them simultaneously (Strazdina, 2000). Strategy marketing is called the strategies of 4P’s -- product, price, promotion and place (Chiou & Jyh-Shen, 2001). 2.3 Customer Relationship Management Customer relationship management is related to customer life (acquire, enhance, maintain) (Kalakota & Robinson, 1999). Starbucks provides a humanized leisure place where customers can enjoy the relaxing store atmosphere. Transactional marketing or benefits marketing, focuses on price competition and individual transactions (Strazdina, 2000). In order to compete with other coffee shops, Starbucks provides some rewards to customers frequently. For example, during anniversary celebration periods, customers are rewarded by “the buy one get one free” campaign. 2.4 Schmitt’s 5-Stages Experiential Marketing Strategy Sense Sense marketing focuses on five senses, which are vision, hearing, smelling, taste and touch (Schmitt, 1999). Senses are transducers from the physical world to the realm of the 8 mind. Sensory systems code for four aspects of a stimulus: type (modality), intensity, location, and duration. Certain receptors are sensitive to certain types of stimuli. Receptors send impulses in certain patterns to send information about the intensity of a stimulus. The location of the receptor that is stimulated gives the brain information about the location of the stimulus. The duration of the stimulus is conveyed by firing patterns of receptors (Kolb & Whishaw, 2003). The satisfactions and joy from sense perception create not only supplementary value for products but also experience of sense perception. If managed well, sense marketing makes it possible for customers to distinguish company and product, stimulating customers' sense experiences and delivering values to customers. In order to create a positive image, marketing personnel need to pay attention to the main elements, styles and theme. The visual identity of a corporation or a brand is often the most important component in invoking attitudes, associations, and customer responses, a phenomenon that Louis Cheskin called “sensation transfer.” Therefore, it is often the sensory experience that attracts a customer to a corporation or brand and that needs to be considered in making a strategic decision. The key strategic objects can motivate its’ customers to buy its product, and deliver value to customers’ recognition. The key success of sense experience is to assure consistent provision of positive impressions and to create diversity (Schmitt, 1999). For example, interior design, decoration, and jazz music in a Starbucks coffee shop. 9 Feel “Feel marketing is the strategy and implementation of attaching affect to the company and brand via experience providers (Schmitt, 1999, p118).” Clearly, positive or negative feeling will affect the product or service which is consumed. affective experiences have mood and emotion. According to Schmitt, “Moods are inspective states (Schmitt, 1999, p122).” For example, employees at a Starbucks store would remember the names of customers and the preference of each frequent customer. That usually makes consumers surprised and brings customers good feelings. Such a nice gesture is all the better since it is was unexpected on the part of the customers. Mood may occur in specific stimuli, even consumer can’t discover that. For example, noisy music in a coffee shop puts customers in a bad mood. “In contrast to moods, emotions are intense and stimulus-specific affective states (Schmitt, 1999).” Based on the Schmitt theory, there are two types of emotion: basic emotion and complex emotions. Basic emotions comprise the base of our affective lives, such like chemical elements. Basic emotions can be found in every part of the world. For example, different cultures have similar facial expressions. Complex emotions are blends and combinations of basic emotions. (Schmitt, 1999). Most marketing-generated emotions are complex ones Schmitt suggested sixteen types of consumption emotions. Such as anger, discontent, worry, sadness, fear, shame, envy, loneliness, romantic, love, peacefulness, 10 contentment, optimism, joy, excitement, and other items (gully, proud, eager). In Starbucks, face to face interactions are important between consumers and employees. Consumers feel comfortable and relaxed when they enter the Starbucks. Customers can find comfortable sofas and warmhearted service which make consumer feel good. Think “The objective of Think marketing is to encourage customers to engage in elaborative and creative thinking that may result in reevaluation of the company and products. Think marketing has the potential to tap into-and sometimes guide-major “paradigm shifts” in society, as people rethink old assumptions and expectations (Schmitt, 1999, p138).” Schmitt conclude the think principle to be: a sense of surprise, a dose of intrigue and a smack of provocation. To surprise customers is important because it is the key to customers’ creative thinking. Surprise creates delight and surpasses customers’ expectations. Then, intrigue led customer’s curiosity that they may come up with what Starbucks is and how it works. What was and what will be? In short, intrigue is getting customers to think at times about the product and brand. In the final phase, a smack of provocation got consumers’ attention and inspired them to discuss. It depends on what the marketer’s intention and what the goal is. The essence of Think marketing is to appeal to customers’ creative thinking about a 11 company and its brands. It will let marketer evaluate their company and products anew. When people refresh their expectations and assumptions, Think marketing may arouse customers’ different thinking to Starbucks and can it be related to this marketing strategy? How and in what way does Starbucks want customers to rethink their products and service? ACT “ACT marketing strategies are designed to create customer experiences related to the physical body, longer-term patterns of behavior and lifestyles as well as experience occurring as a result of interacting with other people (Schmitt, 1999, p154).” Act experiences were mostly ignored in the traditional marketing. There are eight points to Act marketing strategies. The main concept of Act experiences is based on three categories, Physical Body Experiences, Lifestyles and Interact. First of all, Physical Body Experiences is that people’s flesh, motor actions and body signals can affect and stimulate the physical desires produced by environment. Flesh is also a source for people to experience a subject besides what you see and what you smell, such as getting a haircut, a manicure or a massage. Motor actions demonstrate how people’s thoughts can be affected by nonverbal actions. One of the domains of motor actions is actions stimulated by the environment, and the other domain is the actions from inside the person. “Body signals are a factor of evolutionary actions since the dawn of man. People are aware of 12 approach and avoidance, preference and dislike, domination and submission, and how those suggestions affect our reactions (Schmitt, 1999, p163). ” Secondly, Lifestyles, “in the marketing literature, lifestyle refers to the person’s pattern of living in the world as expressed in the person’s activities (Schmitt, 1999, p165).” The work that marketers should do is to sense and lead people towards the lifestyle experience. The way that marketers influence lifestyles is by inducing acting without (much) thinking, using role models and appealing to norms. Third, “Interact do not occur in a social vacuum. Instead, people’s behavior depends not only on their outcome beliefs, attitudes, and intentions but also beliefs of reference groups and social norms (Schmitt, 1999, p167).” The Act experiences are more focused on the medium. An example of a medium could be buying things online or in a retail store. Another example would be using e-book or read a real book. Relate “Relate marketing actions by relating the individual self to the broader social and cultural context reflected in a brand (Schmitt, 1999, p171).” Relate connect with other group, which include lifestyle, gender, or more extensively, other ethnic groups. However, this outcome is not the most prominent in building relationship between customers and brand. The meaning of relate marketing is to make people relate to other individuals, the whole 13 groups, even cultures by brand. “The purpose of relating to others seems to be motivated by a need for categorization and a search for meaning (Schmitt, 1999, p175).” When people describe themselves in terms of certain individual traits, they not only describe identification but also contrast with another. Relationships may form with kin relations or social roles. Steven Pinker (1997) defined two relations differences on “the love of kin comes naturally; the love of non-kin does not (Pinker, 1997, p 429).” Another Related element is cross country value. In different cultures, the strategy of marketing should be sensitive enough to approach customers and avoid the taboo. For example, the global enterprise Pepsi has been prudent in selecting the spokesmen from different areas or countries. The reason is that those spokesmen can be related to the customers’ life. Customers can see the pop star that they are familiar spoke for the merchandise; not the person who is from other country that they barely know. For Starbucks, small tokens and treasure have constantly been introduced to customers as gifts or souvenirs to drawn customers closer to Starbucks. 2.5 Consumer Behaviors Analysis Marketers want to create an emotional attachment between customers and what they 14 are selling. They want to offer customers an experience, not just sell goods or services (Silverman, 2005). Experiential marketing focuses not only on selling goods but on customers’ feelings, so the marketer would take it serious about the relationships between company and customers. Experiential work determines the suitable client objectives that interact with the brand not as the marketing team had initially expected (Liu, 2006). Rather than selling brand only, experiential work aims at selling the service which is closer to customers. The gap involves customer’s satisfaction formation in repurchase loyalty (Olsen, 2007). After receiving the service, customers feel great and want to enjoy the service again. 2.6 Customer Satisfaction The definition of customer satisfaction (Kotler 2003) is: “Customer satisfaction is a person’s feelings of pleasure or disappointment resulting from comparing a product’s perceived performance in relation to his or her expectation (Kotler 2003, p81).” Customer satisfaction includes rational point of view and emotional point of view. The following are differences between rational point of view and emotional point of view. In rational point of view, customer satisfaction is the result of a series of psychological assessment results (Chruchill & Surprenant, 1982). In emotional point of view, customer satisfaction is an immediate emotional response of customers (LaTour & Peat, 1979). 15 Rational point of view of satisfaction defined the level of satisfaction is the individual perceived performance, and personal expectations of the product. Customer satisfaction which is generated in the process of comparing the two cognitive (expectations and performance) is an evaluation. If the performance transcends or is equal to previous expectations, consumers will have satisfaction (Westbrook, 1980). In addition, customer satisfaction is achieved when consumers think the product or service received is beyond their dreams in emotional point of view (Westbrook, 1980). 2.7 Customer Loyalty A quick indication of customer loyalty is repeated purchase (Newman & Werbel, 1973) while becoming less receptive to the competitor’s offerings (Fitzell, 1998). What is often involved is customer commitment (Bloemer & Kasper, 1994) and trust, after an initial experience of customer satisfaction (Bennett, Härtel, & McColl-Kennedy, 2005). 2.8 Satisfaction Affects Loyalty Jones and Sasser (Jones & Sasser, 1995) reveal that higher levels of customer satisfaction do not necessarily correspond with higher likelihood to repurchase a product or 16 service. In both highly competitive and less competitive markets, Jones and Sasser find that customers who are merely satisfied are nevertheless prone to defection in high rates, while only those who are completely satisfied are more likely to buy again (Jones, 1995). Figure2.8.1 Six Representation of Satisfaction and Loyalty The relevant literature shows that the satisfaction-loyalty relation is not well specified. Six of the many and diverse possible associations of satisfaction and loyalty are shown in figure 2.8.1. Oliver (1999) shifted the focus away from customer satisfaction toward another variable of interest: customer loyalty. According to Oliver, loyalty signifies not the repurchasing of a product, but the repurchasing of a product despite situational influences that have the potential to cause switching behavior. 17 For satisfaction to affect loyalty, frequent or cumulative satisfaction is required so that individual satisfaction episodes become aggregated or blended (Oliver, 1999). In Oliver's (1997) framework of loyalty forming, consumers are theorized to become loyal in a cognitive sense first, then later in an affective sense, still later in a cognitive manner, and finally in a behavioral manner (Oliver, 1997). Cognitive loyalty This stage is referred to as cognitive loyalty, or loyalty based on brand belief only. Cognition can be based on prior or vicarious knowledge or on recent experience-based information; the depth of loyalty is no deeper than mere performance. Affective loyalty At the second phase of loyalty development, a liking or attitude toward the brand has developed on the basis of cumulatively satisfying usage occasions, which reflects the pleasure dimension of the satisfaction Commitment. Cognitive loyalty The next phase of loyalty development stage which influenced by repeated episodes of positive affected toward the brand. This commitment is to the intention to rebuy the brand 18 and is more akin to motivation. Action loyalty Study of the mechanism by which intentions are converted to actions is referred to as "action control" (Kuhl & Beckmann, 1985). The action control paradigm proposes that this is accompanied by an additional desire to overcome obstacles that might prevent the act. This engagement is repeated, action inertia develops, thereby facilitating repurchase. 2.9 Hypothesis It is hypothesized that the five strategies module of experiential marketing would positive improve the relationship between firms and customers. But How Starbucks has employed the theoretical concepts of experiential marketing in promoting their products? The following is the hypothesis of this study: Customer satisfaction affects the customer loyalty. Five senses and customer satisfaction have positive correlation. In answering the above hypothesis, the researchers will examine whether Starbucks worked well on relationship between firms and customer. Furthermore, it is hypothesized in 19 the current research that the five strategies module of experiential marketing will help Starbucks expand customers and revenue. 20 Chapter Three Methodology 3.1 Subject The purpose of our case study is to examine how experiential marketing hasbeen working for Starbucks. The study was designed to test whether customer satisfaction affects customer loyalty, and whether five senses and customer satisfactionare related. 3.2 Procedure The questionnaire was posted on Free Online Survey Questionnaires Research website. The questionnaire was in Chinese. Within two weeks, 100 voluntary respondents completed the questionnaire online. We only accept questionnaires from people who have been to Starbucks and purchased because it’s for sure that they had experience the services personally from Starbucks; thus, the subject of this study was insured. And four questionnaires were discarded because their responses to one of the questions indicated that they had never catered Starbucks. This questionnaires survey was carried out from February 21st to March 4th. 3.3 Material The questionnaire includes four sections, each of which contains three to eight questions according to its categories : 21 Section one asks respondents basic demographic information, such as age, profession, gender. Section Two contains questions addressing respondents’ five senses toward Starbucks adapted from Schmitt’s five strategies module of experiential marketing (see figure 1). Section three and Section four tapped customer satisfaction and customer loyalty. 3.4Statistical Treatment Statistical analysis of correlation between chosen variables based on hypothesis was tested by correlation coefficient. Finally, regression analysis will detected the predictability of data to prove the above interpretations. 22 CHAPTER FOUR DATA ANALYSIS The purpose of this study is to investigate how Experiential Marketing has been working for Starbucks. A total of 100 valid questionnaires were completed respond on-line. The questionnaires was base on Schmitt’s theory in 1999, and the questionnaires was applied to measure whether Experiential Marketing work on Starbucks for the participants. The survey use SPSS statistics 17.0. There included three sections, first section use Reliability Statistic analysis to the reliability of the research structures and provides the evidence of correlation; second section use Descriptive Statistic to analysis the sample of questionnaires. Third section use Correlation Statistic and Aggression Statistic to test hypothesis. 4.1 Reliability Analysis The purpose of reliability analysis is to test the reliability of the research structures, and it also provides the evidence of correlation. To sum up, the correlations between the same groups of participants in the same questionnaires would have the same result, if the timing and frequency are different. 23 In this research, the Cronbach’s α is the coefficient to exam the internal correlation and to comprehend the reliability and satiability. If the Cronbach’s α is higher, it means the correlation of the questions in the questionnaire is higher. It also means the internal correlations tend toward consistency. The scholars have different opinions about how big is the value of Cronbach’s α will be defined as high reliability. Nunnally(1978), a scholar, who defined α 0.7 is low but acceptable boundaries value. In the other hand, Guielford(1965), a scholar, defined that if α bigger than 0.7, it means the reliability is high; If α is between 0.7 and 0.35 means it is moderate reliability; if the is lower than 0.35 means the reliability is low. In this Reliability Analysis (see table 4.1), purchase experiences variable of Cronbach’s internal correlation, Sense α = .801, Act α = .750, Think α = .768, Feel= .824, Relate= .858. Customer satisfaction variable of Cronbach’s internal correlation, α = .836, Customer loyalty variable of Cronbach’s internal correlation, α = .892. The result shows that the questionnaire is internal correlation and reliability. Reliability Analysis Variables Stages No. Question Reliability (Cronbach’s Alpha) Sense 1. The interior design in Starbucks makes me feel comfortable. .801 2. The Jazz music in the Starbucks 24 store makes me feel good. Act Purchase Experiences Think Feel 3. The coffee aroma in Starbucks makes me feel relax. 4. The drinks in Starbucks taste good. 5. The food in Starbucks delicious. 6. I feel it is considerate that Starbucks put a corrugate paper with the hot drink and tissue for cold drink. 1. Starbucks affect me the frequency of drinking coffee. 2. For me Starbucks coffee means good coffee. 3. I feel pleasant whenever I go to Starbucks so I like to go to Starbucks. 1. I feel the design of the light in the store is warm. 2. The Starbucks logo makes me think of the entrepreneur is eco-friendly. 3. The coffee bean that Starbucks use arouses me the curiosity of coffee. 4. The service of Starbucks is better than what I expect. 5. It is new for me that we can adjust our coffee as a Starbucks’ customer. 6. The music in Starbucks make me think about the happiness. 1. The seat is comfortable in Starbucks. 2. I feel the attitude of the staff in Starbucks is nice. 3. I feel the atmosphere in Starbucks is warm. 25 .750 .768 .824 Relate Purchase Experiences Customer Satisfaction Customer Loyalty 4. I feel it is fast to pay. 5. I feel the design of the light in the store is warm. 1. I feel that Starbucks coffee is real coffee. 2. When people mentioned about the coffee chain stores, the priority store I would think about is Starbucks. 3. Starbucks is part of my life. 4. I think people who shop in Starbucks have the same taste. 5. I think the byproducts of Starbucks are fashion and tasteful. 6. I usually follow information of Starbucks. 7. I want to join fan’s club on Facebook. 8. I want to participate in the coffee lecture. 1 Assistants’ help in Starbucks can always meet my expectation 2 The products in Starbucks can always meet my expectation. 3 The product that I bought in Starbucks is really worth it. 4 I feel Starbucks is a symbol of great service 1. I feel Starbucks is better than other coffee shop. 2. Starbucks is the priority choice when I want to buy coffee. 3. Starbucks is my only choice of buying coffee 4. Starbucks’ product worth to buy again and again. 5. I bought the membership card and using the bonus to exchange the 26 .858 .836 .892 free gift. 6. I collect Starbucks’ by-products 7. I recommend my friends to go to Starbucks. Table 4.1 4.2 Demographic variable Descriptive Statistic use valid sample to test percentage and frequency distribution of demographic variable and which are basic statistic analyses the sample distribute and structures. The survey (see Table 4.2) was made up of 55 males (54.46%) and 46 female (45.54%).Table 4.2 reveals that most participants were in their twenties (74.26%), students (69.31%). Frequency Distribution of Demographic Variable Variable Gender Age Frequency Percentage (%) Category Male 55 54.46 Female 46 45.54 Under 14 0 0 15-19 2 1.98 20-24 75 74.26 25-29 14 13.86 30-34 9 8.91 35-39 0 0 40-44 0 0 Over 45 1 0.99 27 Occupation Unemployed 3 2.97 70 69.31 Public-service 4 3.96 Technology 7 6.93 Commercial Industry 8 7.92 Service 4 3.96 Others 5 4.95 Student Table 4.2 4.3 Testing hypotheses H1. Five senses and customer satisfaction have positive correlation The second hypothesis test whether the five senses (feel, think, sense, act, relate) and customer satisfaction have related positively The results of a regression analysis show that the five senses together predict customer satisfaction very well, F=105.635, p < .001 (see Table 4.3).Second results of regression analysis show that the four senses (feel, think, sense, act) together predict customer satisfaction, F=80.389, p < .001 (see Table 4.4). Third results of regression analysis show that relate predict customer satisfaction, F=128.790, p < .001 (see Table 4.5). ANOVAb Sum of Squares Model 1 df Mean Square Regression 21.981 1 Residual 19.768 95 28 F 21.981 105.635 .208 Sig. .000a Total 41.749 96 a. Predictors: (Constant), five senses b. Dependent Variable: mean satisfaction Table4.3 ANOVAb Sum of Squares Model 1 df Mean Square Regression 19.135 1 19.135 Residual 22.613 95 .238 Total 41.749 96 F 80.389 Sig. .000a a. Predictors: (Constant), four senses b. Dependent Variable: mean satisfaction Table 4.4 ANOVAb Sum of Squares Model 1 df Mean Square Regression 24.026 1 Residual 17.723 95 Total 41.749 96 F 24.026 128.790 Sig. .000a .187 a. Predictors: (Constant), mean related b. Dependent Variable: mean satisfaction Table 4.5 The table 4.6 shows the result of a agression which compare of the three items, the fist item is four senses(feel, think, sense, act) together predict customer satisfaction, F=80.389. Next item is five senses (feel, think, sense, act, relate) together predict customer satisfation, 29 F=105.635.The final item is relate predict customer satisfaction, F=128.790. From F value of the regression analysis, researchers found that relate has more positive correlation with customer satisfaction than five senses. Base on Schmitt’s theory, People were got together to a group by Starbucks which is different from another group. From questionnaires, there have high agreement about that “Starbucks is parts of my life”; “I think people who shop in Starbucks have the same taste.” It means that relate play an important role in Experiential Marketing means that relate is more positive influence customer satisfaction. H1 Five senses and customer satisfaction have positive correlation is accepted. Analysis of regression Predictors & Dependent Variable F Sig. 80.389 Four senses and Customer satisfaction Five senses and Customer satisfaction 105.635 Relate and customer satisfaction 128.790 P <0.001 Table 4.6 H2. Customer satisfaction affects the customer loyalty. The first hypothesis states that customer satisfaction affects customer loyalty. With an 30 analysis of correlation, the results show that the two variables have a positive correlation, r = .675, p < .001. That is, the two variables increase or decrease together (see Table 4.7) Correlations mean satisfaction mean satisfaction Pearson correlation 1 Sig. mean loyalty .675** .000 (2-tailed) N mean loyalty Pearson correlation Sig. (2-tailed) 97 97 .675** 1 .000 N 97 **correlation is significant at the 0.01 level (two-tailed)。 Table 4.7 31 97 CHAPTER FIVE DISCUSSION AND CONCLUSION The research focused on consumers’ satisfaction, consuming experience and customer satisfaction to Starbucks as the main subject. Researchers will make conclusion which based on the data analysis in chapter four and give direction to future research. 5.1 Discussion The Schmitt’s experiential marketing strategy indicates customer satisfaction and made consumers loyalty further. Therefore, SEMs (Strategic Experiential Modules) of experiential marketing, customer satisfaction and loyalty are positive correlation. Hypothesis accepted H1: Five senses and customer satisfaction have positive correlation. V H2: Customer satisfaction affects the customer loyalty. V Our research found that Schmitt’s 5-Stages Experiential Marketing Strategy and customer satisfaction have positive correlation. According to Schmitt’s experiential marketing strategy definition, there are five stages about Sense, Feel, Think, Act, and Relate. The researcher separated them into two parts. One is“Perceptive experience” including Sense, 32 Feel and Act. The other one is“Psychical experience” including Think and Related. All of these customer experiences can make satisfaction even affects loyalty. A. Perceptive experience About customers’ attitude toward Starbucks, if customers’ lack of recognition for Starbucks, they may purchase products of other coffee chains. On the other hand, if customers’ attitude toward Starbucks is good, the purchasing behavior is easier to be influenced. B. Psychical experience In according to the study of Bennett et al (2005), he thought “emotion” is a factor which is more important than pervious recognition to commercial buying behavior. It also results consistent in purchasing behavior to customers’ brand loyalty Sense Sense is a strong image of a brand to keep strong emotions. Expect home and work place, Starbucks is the third place to go without any pressure, So it definitely increases customers’ satisfaction. Feel Good service such as music, decoration and atmosphere creates good feelings on customers Think 33 Starbucks attracts consumers by activities offering and arouse consumers’ association. It’s helpful no matter the association have positive correlation or not. Act Starbucks can induce consumers to change their lifestyle to participate in Starbucks and build long-term relationship with Starbucks. Relate People are getting together to be grouped by Starbucks which is different from other groups of customers and it also shows people identify the culture value and products of Starbucks. And then raises customers’ loyalty. Analysis of regression Predictors & Dependent Variable F Five senses and Customer satisfaction 105.635 Four senses and Customer satisfaction 80.389 Relate and customer satisfaction 128.790 Sig. P <0.001 The Five senses expect Relate is about personal experience, but if Starbucks satisfies customers’ sense of Relate, the personal experience of customers with Starbucks is not only 34 created, but Starbucks also group their customers which is different from other coffee chains’ customers. So it’s a sense of belonging in the same group of Starbucks if Starbucks satisfies customers’ sense of Relate. The result indicated that “consuming experience” and “customer satisfaction” have positive correlation. It also represented customers recognized Starbucks more, and the level of customer loyalty increased as well. The sense of Relate affects customer satisfaction the most. All the result about five senses and customer satisfaction has positive correlation. Especially our research found that so long as Starbucks satisfied customers’ sense of Relate of Five senses and the effect to satisfaction surpasses the effect of the rest senses to satisfaction. Even the relevancy of Relate to Starbucks is beyond the relevancy of five senses to satisfaction. 5.2 Future Suggestion A. Adopt Other Sampling technique The research only adopted convenience sampling and questioned the participants on the Internet to collected data. Therefore, choosing other rigorous sampling like stratified random sampling to approximate normal distribution for a sufficient large sample size on future research. 35 B. New Logo for Starbucks Starbucks changed its logo and infuriate their loyal customers. 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Matt Heinz (2010) Customer loyalty Is Your Ultimate Competitive Advantage. Bilogging in Innovation. Retrieved December 22,2010, Retrieved from http://www.business-strategy-innovation.com/2010/03/customer-loyalty-is-your-ultimate.htm l Bennett, R., C. E. J. Härtel, and J. R. McColl-Kennedy (2005), “Experience as a Moderator of Involvement and Satisfaction on Brand Loyalty in a Business-to-Business Setting 02-314R.” Industrial Marketing Management, No.34, pp.97-107. Steven Pinker; How the mind works; Penguin; 1997; p 429 38 Attachment Figure 1. Schmitt’s five strategies module of experiential marketing Sense Appeals to the senses with the objective of creating sensory experiences, though sight, sound, touch, taste and smell. Feel Appeals to customer’s inner feelings and emotions, with the objective of creating affective experiences that range from mildly positive moods linked to a brand to strong emotions of joy and pride. Think Appeals to the intellect with the objective of creating problem-solving experiences that engage customers creatively. Act Enriching customers’ lives by targeting their physical experiences, showing them alternative ways of doing things, alternative lifestyle and interactions. Relate Appeals to the individual’s desire for self-improvement. They appeal to the need to be perceived positively by individual others. They relate the person to a broader social system. Figure .2 Experiential marketing 39 cognitive, 親愛的女士,先生你好: 我們是銘傳大學應英系的學生,目前正在研究有關於星巴克的體驗行銷,目的 是希望以學術探討,增加對研究主題的了解;本問卷的資料僅供學術研究統計 之用,絕不單獨對外公開,敬請放心作答。所有問題均無標準答案,請依照真 實狀況及感受回答,並誠摯的感謝你在百忙之中撥空填答此問卷 *基本資料 1. 性別:□男 2. 職業:□待業 □女 □服務業 □學生 3. □資訊業 □商業 □其他 ________ 年齡:□ 14 歲以下 □ 15-19 歲 □ 30- 34 歲 4. □軍公教 □ 20-24 歲 □ 25-29 歲 □ 35-39 歲 □ 40-45 歲 有無喝過星巴克的咖啡 □有 □ 45 歲以上 □無 Feel 非常同意 同意 普通 不同意 同意 1.我覺得星巴克店內的座位舒適寬敞 □ □ □ □ □ 2.我覺得星巴克店內服務人員態度很好 □ □ □ □ □ 3.我覺得星巴克店內整體氣氛溫馨 □ □ □ □ □ 4.我覺得星巴克店內結帳速度很迅速 □ □ □ □ □ 5.我覺得星巴克店內燈光設計溫暖 □ □ □ □ □ 1.星巴克的慈善活動,引起我對弱勢團體的關懷 □ □ □ □ □ 2.星巴克的綠色系商標,讓我聯想到企業是環保的 □ □ □ □ □ 3.星巴克使用的咖啡豆,影響我對咖啡的好奇 □ □ □ □ □ Think 40 非常不 4.星巴克的服務品質,超出我的預期 □ □ □ □ □ 5.星巴克讓顧客選擇如何調配自己的咖啡,讓我覺 得很新奇 6.星巴克的音樂,讓我回憶起快樂的事 □ □ □ □ □ □ □ □ □ □ 1.星巴克影響我平日喝咖啡的頻率 □ □ □ □ □ 2.星巴克咖啡對我來說是好咖啡的代名詞 □ □ □ □ □ 3.到星巴克我都會有愉悅的感受所以我會去星巴 克 □ □ □ □ □ 1.星巴克的室內裝潢風格讓我覺得很舒適 □ □ □ □ □ 2.星巴克所撥放的爵士樂讓我覺得很悅耳 □ □ □ □ □ 3.星巴克的咖啡香四溢讓我覺得很放鬆 □ □ □ □ □ 4.我覺得星巴克的飲品口味很香醇 □ □ □ □ □ 5.我覺得星巴克的餐點口味很可口 □ □ □ □ □ 6.星巴克隨飲品附上的格層(冷飲為衛生紙,熱飲 為杯套)我覺得很貼心 □ □ □ □ □ 1.我覺得星巴克的咖非是真正道地的咖啡 □ □ □ □ □ 2.提到連鎖咖啡店時,我第壹個想到的是星巴克 □ □ □ □ □ 3.在星巴克消費已經成為我生活中的一部分 □ □ □ □ □ 4.我認為同是在星巴克消費的族群擁有相同的品 □ □ □ □ □ Action Sense Relate 41 味 5.我認為星巴克的周邊商品具有時尚品味 □ □ □ □ □ 6.我平常有在關注星巴克的各種訊息 □ □ □ □ □ 7.我想加入星巴克在 FACEBOOK 的粉絲團 □ □ □ □ □ 8.我會想參與星巴克的咖啡講座 □ □ □ □ □ □ □ □ □ □ 2.在星巴克購買產品能完全符合我的期望 □ □ □ □ □ 3.在星巴克購買產品讓我覺得物超所值 □ □ □ □ □ 4. 我認為星巴克是優良服務品質的象徵 □ □ □ □ □ 1. 我認為星巴克較為其他咖啡店來得好 □ □ □ □ □ 2.我買咖啡會優先選擇星巴克 □ □ □ □ □ 3.星巴克是我購買咖啡的唯一選擇 □ □ □ □ □ 4.星巴克的產品值得我一再購買 □ □ □ □ □ 5.我會買星巴克的隨行卡集紅利換贈品 □ □ □ □ □ 6.我會蒐集星巴克的周邊商品 □ □ □ □ □ 7.我會推薦朋友去星巴克消費 □ □ □ □ □ 滿意度 1. 對於你的要求星巴克服務人員的答覆符合你的 期望 忠誠度 42