Experiential Marketing Leading to Behavioural Intention - Testing the Mediation Effects of Information Search Cost
The luxury market has growth dramatically in the recent years. Researches for luxury market drew more attention in academic fields. This paper proposed in research model to understand the consumer consumption behavior based on the experiential marketing module proposed by Schmitt (1990). With 379 valid samples, this study found that both of sense and feel positively influenced the consumer trust and self-esteem. Indeed, information search cost fully mediated the relationship between the trust and behavioral intention, and partially mediated the relationship between the self-esteem and behavioral intention. For marketers who want to promote the market share, this study provides more comprehensive information on how to offer the efficient marketing clues to invest the limited resource on the critical variables in order to maximize the sales volume. More theoretical and managerial implications are also discussed in the last section.
Experiential Marketing Leading to Behavioural Intention - Testing the Mediation Effects of Information Search Cost, Science Journal of Business and Management. Special Issue: Customer Experience Management / Marketing Branding.
Vol. 3, No. 2-1,
2015, pp. 43-53.
Z. U. Ahmed, J. P. Johnson, X. Yang, C. K. Fatt, H. S. Teng, and L. C. Boon, “Does country of origin matter for low-involvement products?” International Marketing Review, vol. 21, no. 1, pp. 102-120, 2004.
C. Amatulli, and G. Guido, “Determinants of purchasing intention for fashion luxury goods in the Italian market: A laddering approach”. Journal of Fashion Marketing and Management: An International Journal, vol. 15, no. 1, pp. 123-136, 2011.
J. Arndt, S. Solomon, T. Kasser, and K. M. Sheldon, “The urge to splurge: a terror management account of materialism and consumer behavior”. Journal of Consumer Psychology, vol. 14, no. 3, pp. 198-212, 2004.
L. D. Bacon, Using LISREL and PLS to measure customer satisfaction. In Seventh Annual Sawtooth Software Conference, La Jolla CA. 305-306, 1999.
R. P. Bagozzi, and Y. Yi, “On the evaluation of structural equation models”. Journal of the Academy of Marketing Science, vol. 16, no. 1, pp. 74-94, 1988.
Bain & Company, Luxury goods worldwide market study fall-winter 2014 – The rise of the borderless consumer, 2014, available at http://www.bain.com/publications/articles/luxury-goods-worldwide-market-study-december-2014.aspx, assessed on 18/02/2015.
R. M. Baron, and D. A. Kenny, “The moderator–mediator variable distinction in social psychological research: Conceptual, strategic, and statistical considerations”. Journal of Personality and Social Psychology, vol. 51, no. 6, pp. 1173-1182, 1986.
R. F. Baumeister, J. D. Campbell, J. I. Krueger, and K. D. Vohs, “Does high self-esteem cause better performance, interpersonal success, happiness, or healthier lifestyles?” Psychological Science in the Public Interest, vol. 4, no. 1, pp. 1-44, 2003.
Q. Bian, and S. Forsythe, “Purchase intention for luxury brands: A cross cultural comparison”. Journal of Business Research, vol. 65, no. 10, pp. 1443-1451, 2012.
J. D. Brown, "Self-esteem and self-evaluation: Feeling is believing". In: Sils, J. (Ed.) Psychological perspectives on the selfLawrence Erlbaum Associates, Hillsdale, pp. 27-58, 1993.
A. Brun, F. Caniato, M. Caridi, C. Castelli, G. Miragliotta, S. Ronchi, A. Sianesi, and G. Spina, “Logistics and supply chain management in luxury fashion retail: Empirical investigation of Italian firms”. International Journal of Production Economics, vol. 114, no. 2, pp. 554-570, 2008.
P. N. Danziger, Let them eat the cake: marketing luxury to the masses as well as the classes. Chicago: Dearborn Trade Publishing, 2005.
A. Di Paula, and J. D. Campbell, “Self-esteem and persistence in the face of failure”. Journal of Personality and Social Psychology, vol. 83, no. 3, pp. 711-724, 2002.
B. Dubois, and G. Laurent, “Attitudes toward the concept of luxury: An exploratory analysis”. Asia-Pacific Advances in Consumer Research, vol. 1, no. 2, pp. 273-278, 1994.
T. Erdem, and J. Swait, “Brand equity as a signaling phenomenon”. Journal of Consumer Psychology, vol. 7, no. 2, pp. 131-157, 1998.
T. Erdem, J. Swait, and A. Valenzuela, “Brands as signals: A cross-country validation study”. Journal of Marketing, vol. 70, no. 1, pp. 34-49, 2006.
L. R. Fabrigar, D. T. Wegener, R. C. MacCallum, and E. J. Strahan, “Evaluating the use of exploratory factor analysis in psychological research”. Psychological Methods, vol. 4, no. 3, pp. 272-299, 1999.
R. Ferraro, B. Shiv, and J. R. Bettman, “Let us eat and drink, for tomorrow we shall die: effects of mortality salience and self-esteem on self-regulation in consumer choice”. Journal of Consumer Research, vol. 32, no.1, pp. 65-75, 2005.
C. Fornell, and D. F. Larcker, “Structural equation models with unobservable variables and measurement error: Algebra and statistics”. Journal of Marketing Research, vol. 18, no. 3, pp. 382-388, 1981.
L. Gao, M. J. Norton, Z. M. Zhang, and C. K. M. To, “Potential niche markets for luxury fashion goods in China”. Journal of Fashion Marketing and Management: An International Journal, vol. 13, no. 4, pp. 514-526, 2009.
E. Garbarino, and M. S. Johnson, “The different roles of satisfaction, trust, and commitment in customer relationships”. Journal of Marketing, vol. 63, no. 2, pp. 70-87, 1999.
J. B. Gassenheimer, F. S. Houston, and J. C. Davis, “The role of economic value, social value, and perceptions of fairness in interorganizational relationship retention decisions”. Journal of the Academy of Marketing Science, vol. 26, no. 4, pp. 322-337, 1998.
J. Goody, “From misery to luxury”. Social Science Information, vol. 45, no. 3, pp. 341-348, pp. 2006.
J. F. Hair, R. E. Anderson, R. L. Tatham, and W. C. Black, Multivariate Data Analysis (5th ed.), Englewood Cliffs, NJ: Prentice-Hall, 1998.
J. F. Hair, M. Sarstedt, C. M. Ringle, and J. A. Mena, “An assessment of the use of partial least squares structural equation modeling in marketing research”. Journal of the Academy of Marketing Science, vol. 40, no. 3, pp. 414-433, 2012.
M. K. Hogg, A. J. Cox, and K. Keeling, “The impact of self-monitoring on image congruence and product/brand evaluation”. European Journal of Marketing, vol. 34, no. 5/6, pp. 641-666, 2000.
D. B. Holt, “How consumers consume: A typology of consumption practices”. Journal of Consumer Research, vol. 22, pp. 1-16, 1995.
J. Hulland, “Use of partial least squares (PLS) in strategic management research: A review of four recent studies”. Strategic Management Journal, vol. 20, no. 2, pp. 195-204, 1999.
H. Hwang, N. K. Malhotra, Y. Kim, M. A. Tomiuk, and S. Hong, “A comparative study on parameter recovery of three approaches to structural equation modeling”. Journal of Marketing Research, vol. 47, no. 4, pp. 699-712, 2010.
T. A. Judge, and J. E. Bono, “Relationship of core self-evaluations traits—self-esteem, generalized self-efficacy, locus of control, and emotional stability—with job satisfaction and job performance: A meta-analysis”. Journal of Applied Psychology, vol. 86, no. 1, pp. 80-92, 2001.
Ş. Kalaycı, Faktör Analizi, Ş. Kalaycı (Ed.) SPSS Uygulamalı Çok Değişkenli İstatistik Teknikleri (ss. 321–331). Ankara: Asil Yayın Dağıtım Ltd. Şti, 2005.
T. Kasser, The high price of materialism. London: MIT Press, 2002.
K. L. Keller, Strategic Brand Management, Prentice Hall, New York, NY, 2003.
KPMG, Luxury brands in China, , 2006, available at http://www.kpmg.com.cn/en/virtual_library/Consumer_markets/CM_Luxury_brand.pdf., accessed on 25/01/2015.
L. Leuthesser, “Defining, measuring, and managing brand equity”. (Report No 88-104) Cambridge, MA. Marketing Science Institute, 1988.
G. A. Marcoulides, and C. Saunders, “PLS: A silver bullet?” Management Information Systems Quarterly, vol. 30, no. 2, pp. iii-ix, 2006.
R. C. Mayer, J. H. Davis, and F. D. Schoorman, “An integrative model of organizational trust”. Academy of Management Review, vol. 20, no. 3, pp. 709-734, 1995.
Mckinsey & Co, Luxury Goods and Brands, MGI, Geneva, 1998.
D. G. Mick, and M. DeMoss, “Self-gifts: Phenomenological insights from four contexts”. Journal of Consumer Research, vol. 17, no. 3, pp. 322-332, 1990.
C. Moorman, R. Deshpande, and G. Zaltman, “Factors affecting trust in market research relationships”. Journal of Marketing, vol. 51, no. 7, pp. 81-101, 1993.
R. M. Morgan, and S. D. Hunt, “The commitment-trust theory of relationship marketing”. Journal of Marketing, vol. 58, pp. 20-38, 1994.
A. O'cass, and H. McEwen, “Exploring consumer status and conspicuous consumption”. Journal of Consumer Behaviour, vol. 4, no. 1, pp. 25-39, 2004.
R., Pyszczynski, J. Greenberg, S. Solomon, J. Arndt, and J. Schimel, “Why do people need self-esteem? A theoretical and empirical review”. Psychological Bulletin, vol. 130, no. 3, pp. 435-468, 2004.
F. F. Reichheld, and P. Schefter, “E-loyalty”. Harvard Business Review, vol. 78, no. 4, pp. 105-113, 2000.
J. M. Renaud, and A. R. McConnell, “Wanting to be better but thinking you can’t: implicit theories of personality moderate the impact of self-discrepancies on self-esteem”. Self and Identity, vol. 6, no. 1, pp. 41-50, 2007.
C. M. Ringle, S. Wende, and A. Will, SmartPLS 2.0.M3. Hamburg: SmartPLS, available at http://www.smartpls.de., accessed on 28/01/2015.
E. Roux, and J. M. Floch, “Gerer l’ingerable: La contradiction interne de toute maison de luxe”. Decisions Marketing, vol. 9, pp. 15-23, 1996.
B. Schmitt, “Experiential marketing”. Journal of Marketing Management, vol. 15, no. 1-3, pp. 53-67, 1999.
K. M. Sheldon, A. J. Elliot, Y. Kim, and T. Kasser, “What is satisfying events? Testing 10 candidate psychological needs”. Journal of Personality and Social Psychology, vol. 80, no. 2, pp. 325-339, 2001.
S. Shugan, "The cost of thinking". Journal of Consumer Research, vol. 7, no. 2, pp. 99-111, 1980.
M. Singh, S. K. Balasubramanian, and G. Chakraborty, “A comparative analysis of three communication formats: advertising, infomercial, and direct experience”. Journal of Advertising, vol. 29, no. 4, pp. 135-152, 2000.
D. Sirdeshmukh, J. Singh, and B. Sabol, “Consumer trust, value, and loyalty in relational exchanges”. Journal of Marketing, vol. 66, no. 1, pp. 15-37, 2002.
G. W. Snedecor, and W. G. Cochran, Statistical Methods. Eighth Edition, Iowa State University Press, 1989.
M. Tan, and T. Teo, “Factors influencing the adoption of Internet banking”. Journal of the Association for Information Systems, vol. 1, no. 5, pp. 1-44, 2000.
Y. Truong, and R. McColl, “Intrinsic motivations, self-esteem, and luxury goods consumption”. Journal of Retailing and Consumer Services, vol. 18, no. 6, pp. 555-561, 2011.
S. H. Tsaur, Y. Chiu, and C. H. Wang, “The visitors behavioral consequences of experiential marketing: An empirical study on Taipei Zoo”. Journal of Travel & Tourism Marketing, vol. 21, no. 1, pp. 47-64, 2006.
C. Tynan, S. McKechnie, and C. Chhuon, (2010). “Co-creating value for luxury brands”. Journal of Business Research, vol. 63, no. 11, pp. 1156-1163.
G. L. Urban, F. Sultan, and W. J. Qualls, “Placing trust at the center of your Internet strategy”. Sloan Management Review, vol. 42, no. 1, 2000, Online available at http://sloanreview.mit.edu/article/placing-trust-at-the-center-of-your-internet-strategy/, accessed on 01/03/2015.
F. Vigneron, and L. W. Johnson, “Measuring perceptions of brand luxury.” The Journal of Brand Management, vol. 11, no. 6, pp. 484-506, 2004.
Y. Wang, S. Sun, and Y. Song, "Motivation for luxury consumption: Evidence from a metropolitan city in China". Research in Consumer Behavior, vol. 12, pp. 161-181, 2010.
K. P. Wiedmann, N. Hennigs, and A. Siebels, “Value‐based segmentation of luxury consumption behavior”. Psychology & Marketing, vol. 26, no. 7, pp. 625-651, 2009.
K. K. Wong, “Handling small survey sample size and skewed dataset with partial least square path modeling”. Vue: The Magazine of the Marketing Research and Intelligence Association, pp. 20-23, November, 2010.
P. L. Wright, On the direct monitoring of rational response to advertising. in Hughe, G.D. (Ed.). Buyer/Consumer Information Processing, University of North Carolina Press, Chapel Hill, NC, 1974.
S. J. Yoon, “Antecedents and consequences of in-store experiences based on an experiential typology”. European Journal of Marketing, vo., 47, no. 5/6, pp. 693-714, 2013.