MSc
Marketing
&
Services Management
Consumer Value & Experiential Marketing
Dr. Weiyue (Jimmy) Wang
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Lecture Objectives
To understand:
• consumer personal value
• social influences
• consumer segments
• experiential marketing
• empirical academic studies
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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).
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.
An Academic Research
Animosity and Willingness to Buy
Foreign Products: The Moderating Effects
of Materialism and Susceptibility to
Normative Influence
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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)
The Existing Framework
Consumer
ethnocentrism
Product
judgement
Economic
animosity
Willingness to
buy foreign
products
War
animosity
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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
The Expanded Framework
Consumer
ethnocentrism
Product
judgment
Willingness
to buy
Economic
animosity
War
animosity
Materialism
Susceptibility to
normative influence
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Shopping with others…

How does shopping with others influence
impulsive purchasing



Sample: 152 + 112 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
Consumer Segmentation
Need
Behaviour
Characteristic
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)
Traditional Marketing
Features and
benefits
Method are
analytical,
quantitative and
verbal
Traditiona
l
Marketing
Narrow definition
of product
category and
competition
Customers are
rational decisionmakers
Source: Schmitt, 1999
Experiential Marketing
Customer Experience
Methods are
eclectic
Experiential
Marketing
Consumption is a
holistic
experience
Customers are
rational and
emotional animals
Source: Schmitt, 1999
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. 1999. Experiential Marketing, Journal of Marketing Management, 15, 53-67.
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
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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, selfdetermination, and impact (Spreitzer, 1995)




Meaning
Competence
Self-determination
Impact
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What we have achieved?



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

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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
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