Marketing Mix: An Analysis of Customer Experience Literature Review

This report presents a comprehensive literature review on the marketing mix, with a specific focus on customer experience. It examines the evolution of customer experience, exploring the impact of technology, interpersonal relationship theory, and customer engagement on brand loyalty. The review analyzes various research studies, highlighting the changing perceptions of customer experience over time and the role of technology in enhancing online and offline shopping experiences. The report also delves into the link between customer experience management and brand loyalty, discussing strategies to improve customer experience, including customer engagement approaches and customer experience management (CEM) patterns. Overall, the review emphasizes the importance of understanding customer experience for the success of business firms and provides valuable insights into the dynamic nature of customer experience in the marketing field.

Running head: MARKETING MIX
Marketing mix
Name of the student:
Name of the University:
Author’s note:

1MARKETING MIX
Part A- Project plan and structure
Customer experience is an important focus of marketing activities in any industry. This is
because customer experience determines the success of any product or service and the
profitability of business. Marketing researchers present in competitive organization pay a lot of
attention to identifying the needs and changing demands of consumers regionally and globally.
This enables them to determine the factors needed for positive customer experience and a
positive customer experience in turn drives customer loyalty (Gounaris 2015). Customer loyalty
is maintained by providing an exceptional experience to consumers and positive customer
experience is directly related to customer retention. A satisfied customers are more likely to
recommend the service or product to potential consumers and affect the brand loyalty too
(Nysveen and Pedersen 2014). However, the current challenges for marketing leaders is that
customers are now much informed about different products and services available in market due
to the advent of technologies and social media sites. Hence, all information related to product is
at their finger tips now. In such case, it is challenges to constantly provide innovative customer
experience to target consumers. To plan strategic factors that are necessary to improve customer
experience in a dynamic and challenging business environment, there is a need to review
literature on integrated customers experience and the relevant theories that drives customer
experience marketing. This literature review analyzed peer reviewed journal articles by thematic
analysis process and discusses the integrated customer experience under specific themes.
Part B- Literature review
The definition of customer experience is evolving in dynamic nature of business
environment. Thematic analysis approach has been used in this literature review to search and

2MARKETING MIX
analyze peer reviewed research article related to the topic and categorize them under key themes.
The following are the themes coming out after reviewing literatures on integrated customer
experience in marketing:
Theories related to customer experience
Many research studies have evaluated the customer-brand relationship by the application
of the interpersonal relationship theory. For instance, Peter, (2014) used the interpersonal
relationship theoretical framework to study about the impact of interpersonal relationship on
marketing performance. It focused on social exchange theory and the uncertainty reduction
theory to interpret the research data. The social exchange theory explains that give and take is
necessary to strengthen any relationship, so feelings and emotions of recipient should be
reciprocated to develop a good and long lasting relationship (Cropanzano et al. 2016). This
concept may be applied to develop strategies for improving the customer experience too.
Secondly, the uncertainty reductions theory gave idea about the stages two individual go through
when they are strangers and have no knowledge about each other (Hogg, 2016). Therefore, the
uncertainty reduction theory gave rise to a framework or strategies to replace uncertainty and
ambiguity with familiarity and security in an interpersonal relationship. Hence, with the use of
these theories, Peter, (2014) came to the conclusion that interpersonal communication is
necessary for positive influence on marketing performance. The quality of friendly interaction is
one dimension of interpersonal relationship. Therefore, the study gave the implication that
increased attention to relationship marketing strategies is important for sustaining customer
loyalty and improving marketing performance.
Changes in perception of customer experience with time:

3MARKETING MIX
Customer experience has become a major focus in management and marketing practices.
The definition of customer experience may change in different business-to-business setting. The
study by McColl-Kennedy et al., (2015) provides the perspective that in today’s business
environment, customer experience is controlled not just by service provider, but also by the
influence of devices likes smart phones and internet. Majority of studies has focused on
organization’s perspective to understand customer experience, however McColl-Kennedy et al.,
(2015) emphasized on the broad role of customers in customer experience and identifying the
dynamic nature of customer experience with time. While identifying the current gap in research
on customer experience, the study revealed that customers are no longer a passive recipients of
products or services. They are well-informed about their choices and they provides new ideas for
service innovation and enhancing customer experience. The study proposed practice-based
approach to understand consumer experience and this can be done by focusing customer’s
personal value base and the factors that drive their engagement with product or services.
Therefore, the study was successful in proposing future approach needed to evaluate customer’s
perception and change in their experience overtime.
Role of technology in customer experience:
Internet and other technology have transformed the retail environment too. Currently,
retailers are investing in different technology to provide unique customer experience. Blázquez
(2014) evaluated the role of technology in enhancing online shopping experience in the fashion
industry. The research particularly explored how internet and digital technology has changed the
multichannel shopping experiences of consumers. The concept of shopping values was defined
in this study by the hedonic and utilitarian value. Hedonic value referred to the emotive element
of shopping experience whereas the utilitarian value referred to the task oriented purpose f

4MARKETING MIX
shopping. Hedonic value may made clear by a shopping experience done for fun and pleasure.
Hedonic values has been found to improve consumer loyalty and utilitarian value was considered
important for developing positive attitude towards a brand in consumers (Allard, Babin and
Chebat 2009). A qualitative survey was done to evaluate the experience of consumers in brick
and mortar stores and online shopping. The study findings showed that technology was a major
motivator for consumers to shop in particular stores. The consumer’s perception of motivation
behind in-store experience, such as the hedonic or utilitarian value was also considered important
for multichannel retailer (Blázquez 2014). The strength of this study is that hedonic elements in
shopping experience was established and it was found that technology is a good source for
retailers to integrate different channels and connect with consumers and provided them good
shopping experiences. Although internet was considered to be a threat for future stores, the study
gave the implication that customer experience can be improved if service providers think in all
channels just like consumers.
Link between customer experience and brand loyalty:
Several research studies established the link between customer experience management
and brand loyalty. So et al. (2016) evaluated the role of customer engagement in improving
customer experience and building consumer loyalty. In the tourism industry, a customer
engagement strategy is considered important to enhance customer experience and manage
customer brand relationship. The review of literatures showed that consumer engagement
approaches like online user-generated reviews influenced the rate of online booking and
intention to book hotels. This approach is beneficial for organizations to attract and retain more
consumers (Sparks and Browning 2011). So et al. (2016) used survey questionnaire methods to
evaluate perception of customers related to experience in tourist industry. The study done with

5MARKETING MIX
consumers gave insight into the role of customer engagement in build customer relationship with
brand. The finding supported the fact that customer engagement is a critical factor to understand
service brand loyalty factors and including them in their service.
Rageh Ismail et al. (2011) also highlighted the evolving nature of customer experience in
the marketing discipline. The literature review evaluated the impact of customer experience on
brand loyalty. The review pointed out that creating unique experience for consumers has become
important to gain competitive advantage in business. Although customer experience is not a new
concept, however changes in the definition of customer experience is seen with time. Studies
defined customer experience in different ways. In addition, various dimensions of customer
experience was also defined such as the number of interactions with brand or the hedonic factor
in service experience. Several antecedents to customer experience was also defined such as the
brand name, pricing, advertising and core service. All this together shaped the perception
regarding service quality and consequently brand loyalty. Once a company is successful in
building a loyal customer, their profitability will automatically increase. This is because loyal
customers will be less sensitive to price factors and focus more on relationship with the brand.
Overall, this study was successful in highlighting different definitions and dimensions of
customer experience. It also presented an empirical model to build consumer experience.
However, the only gap in this research was that the conceptual research model was not tested for
validity. Still, the research gave many important future implications to manage customer
experience in organization.
Another research contributed to the understanding of the integrated customer experience
by connecting the dots between brand experience and brand loyalty. The relationship between
customer’s experience with brand and the brand loyalty component of purchase and attitude was

6MARKETING MIX
examined by means of survey with 372 consumers. The use of questionnaire supported the
collection of data related to experience with a brand, feelings of trust and loyalty towards the
brand. The outcome of the study showed that brand experience has a direct relation with brand
attachment and brand commitment. However, the research showed no link between brand
experience and brand trust. This disparity occurred because brand trust is dependent on level of
involvement (Ramaseshan and Stein 2014). This research is significant because past studies
focused only on the link between brand experience and customer loyalty, however this study
established the link between brand experience and purchase brand loyalty. It also contributed to
the interpersonal relationship theory. The study gave many managerial implications too by
stating that managers should plan strategies to enhance brand-related stimuli such as
communication, packaging and environment to influence brand experience.
Business organizations have now shifted their strategies focus towards customer
satisfaction and customer retention. They consider branding as an important element to establish
long-term relationship with customers and enhance their experience with brand. Krystallis and
Chrysochou, (2014) include service brand loyalty as a factor to measure customer experience.
The on-line survey regarding the research question was done with two industries- the airline
industry and the banking industry. The evaluation of both the service showed that value for
money was the important brand component for consumers and brand name was not considered
important for customer’s evaluation. The price or good value for money had a major impact on
customer’s decision making. Secondly, the quality of interaction between the service provider
and customer determines the consumer’s satisfaction level. The main strength of this study is that
it showed that customer’s degree of brand loyalty is influenced not only by overall customer’s
disposition, but also by brand evidence. The gap in the study is that full detail regarding brand

7MARKETING MIX
service dimension and communication was not evaluated and future work needs to be done in
this area.
Strategies to manage customer experience:
Customer experience management (CEM) has become a challenging task in today’s
business environment. The research by Homburg, Jozić, and Kuehnl (2017) evaluated the
changing marketing landscape by evaluating the experience of managers in CEM. The grounded
theory approach was used to conduct the study and the perception of manager towards CEM was
evaluated. The study findings gave indications about three CEM pattern. Firstly, the participant’s
response revealed a vision towards CE and experiential response orientation. Secondly, firm’s
capability towards CEM was found and most beneficial among them was the adaptability to
CEM in different situations. The third pattern focused in cultural mindset and touch point
prioritization. Secondly, the final pattern was alliance orientation and touch point journey design.
This study has limitation as it is based on grounded theory approach and grounded theory may
rely on researcher’s ability to code qualitative data. However, the strength of the study is that it
led to the conceptualization of CEM and this will help to systemize the strategies taken to
enhance customer experience in the marketing field.
One of the leading business objectives of business leaders today is to build an strong
customer experience. Hence, having good understanding about customer experience and their
journey with time will have great implications for the success of business firms. This
understanding is developed by Lemon and Verhoef (2016) who focused in investigating about
the customer experience through customer journey. Developing this concept is considered
important because customers now interact with multiple channels to decisions on buying or

8MARKETING MIX
receiving any service. This research gave information related historical perspective of the roots
of customer experience. The review of research literature indicated that customer buying
behavior process models, customer satisfaction and loyalty, service quality, relationship
marketing, customer engagement and customer relationship management determines customer
experience. All these factors were extensively explained in the study. Secondly, the whole
customer journey was explained through the stages of the total customer experience. The
customer journey starts from the prepurchase phase, which involves searching and considering
about the goals or impulse associated with a purchase. The second stage is the purchase stage
which, involves the process occurring during purchase event such as customers interaction with
the brand and its environment. The third phases the interaction with the brand after the purchase
event. This was defined by level of usage, number of service or product request and word of
mouth praise for products. The touch points involve in customer’s journey was also defined. The
main strength of this research was that it gave holistic view about the integrated customer
experience across the customer journey and this knowledge would help to enhance and manage
customer experience.
Summary
The literature review effectively developed the concepts regarding integrated customer
experience by systematically presenting key themes. Firstly, the review gave idea about the
relevant theories that influence customer experience and act a guideline for improving
customer’s relationship with the brand. Secondly, other themes of changes in customer
experience and role of technology in customer experience developed the understanding regarding
how customer experience has evolved and innovative methods are needed to attract consumers.
Other important theme related link between customer experience and brand loyalty was a

9MARKETING MIX
positive categorization to fully understanding the method of branding process and tactics to
deliver a unique experience to consumers. The explanation regarding the customer’s journey
during a purchase event further embedded the main concepts about the topic and this will have
great implications for future managers to move ahead with strategic focus on customer
experience management.

10MARKETING MIX
Reference
Allard, T., Babin, B.J. and Chebat, J.C., 2009. When income matters: Customers evaluation of
shopping malls’ hedonic and utilitarian orientations. Journal of Retailing and Consumer
Services, 16(1), pp.40-49.
Blázquez, M., 2014. Fashion shopping in multichannel retail: The role of technology in
enhancing the customer experience. International Journal of Electronic Commerce, 18(4), pp.97-
116.
Cropanzano, R., Anthony, E., Daniels, S. and Hall, A., 2016. Social exchange theory: A critical
review with theoretical remedies. Academy of Management Annals, pp.annals-2015.
Gounaris, S., 2015. Customer Experience. Wiley Encyclopedia of Management.
Hogg, M.A., 2016. Social identity theory. In Understanding Peace and Conflict Through Social
Identity Theory (pp. 3-17). Springer International Publishing.
Homburg, C., Jozić, D. and Kuehnl, C., 2017. Customer experience management: toward
implementing an evolving marketing concept. Journal of the Academy of Marketing
Science, 45(3), pp.377-401.
Krystallis, A. and Chrysochou, P., 2014. The effects of service brand dimensions on brand
loyalty. Journal of Retailing and Consumer Services, 21(2), pp.139-147.
Lemon, K.N. and Verhoef, P.C., 2016, November. Understanding customer experience
throughout the customer journey. American Marketing Association.

11MARKETING MIX
McColl-Kennedy, J.R., Gustafsson, A., Jaakkola, E., Klaus, P., Radnor, Z.J., Perks, H. and
Friman, M., 2015. Fresh perspectives on customer experience. Journal of Services
Marketing, 29(6/7), pp.430-435.
Nysveen, H. and Pedersen, P.E., 2014. Influences of co-creation on brand experience The role of
brand engagement. International Journal of Market Research, 56(6), pp.807-832.
Peter, A., 2014. The Effect of Interpersonal Relationship on Marketing Performance in the
Nigerian Hotel Industry. International Journal of Business and Social Science, 5(2).
Rageh Ismail, A., Melewar, T.C., Lim, L. and Woodside, A., 2011. Customer experiences with
brands: Literature review and research directions. The Marketing Review, 11(3), pp.205-225.
Ramaseshan, B. and Stein, A., 2014. Connecting the dots between brand experience and brand
loyalty: The mediating role of brand personality and brand relationships. Journal of Brand
Management, 21(7-8), pp.664-683.
So, K.K.F., King, C., Sparks, B.A. and Wang, Y., 2016. The role of customer engagement in
building consumer loyalty to tourism brands. Journal of Travel Research, 55(1), pp.64-78.
Sparks, B.A. and Browning, V., 2011. The impact of online reviews on hotel booking intentions
and perception of trust. Tourism management, 32(6), pp.1310-1323.