MA PROJECT

MA Design Management for Fashion Industries

Mingming Yu

YU_10291700

Meeting connected customers in Fashion 2.0:

An analytical research on mobile commerce services for

fashion retailers to enhance customer experience

- based on Chinese Generation Y

customer perspective

FASHION RETAILERS (BRANDS) MOBILE COMMERCE CUSTOMER EXPERIENCE CHINESE GEN Y

Mobile Commerce Customer Experience

!

….the on-going responses when customers interact with any touch-

point from the fashion brand or retailer during the shopping stages.

….B2C shopping-related activities conducted by mobile phones,

directly or indirectly.

e.g., product information search,

browsing fashion websites,

using mobile applications,

purchasing fashion products by mobile online.

Customer Experience

Mobile Commerce

What comprises Customer Experience in Mobile Commerce?

&How can fashion companies leverage the advantages of mobile

for customer experience management (CEM)?

….WHAT?


Physical Intelligence

GPS

Intimate and

Interactive

Location

-Sensitivity

Touch

Sensors (A/V)

Personal and Social Contacts

Portability Relevant at Point of

Consideration

Promising Chinese Mobile

Marketing Environment

• Astonishing number of mobile subscriptions;

• Next generation 3G network;

• Ubiquitous access to mobile web….

Special Characteristic

of Chinese Gen Y

• High-tech and fashion-savvy;

• Frequent mobile users;

• Early adopters and active users of mobile services;

• Profound potential purchasing power….

Great Benefits of Experiential

Marketing

• Strengthen the competition forces;

• Influence customer satisfaction;

• Enhance customer loyalty;

• Evoke emotional response;

• Support the brand.

Unique Features of

Mobile Phone

Fashion +

Mobile

Commerce +

Customer

Experience+

Chinese Gen Y

….WHY?


In-store

Online

Store

Atmosphere

Social

Environment

Incentive

Trust

Security

TAM

UTAUT

IDT

TPB

SQ

Customer

Acceptance

Customer

Value

Customer

Satisfaction

and

Behavioural

Intention

Technology-

related

Theories

Consumer

Behaviour

in

M-commerce

Situational

Moderators

Consumer

Moderators

Expectation

Perception

Goal

Customer

Experience in

Fashion

M-commerce

Customer

Experience

in

Marketing

and

Management

Research

Gap

….CURRENT RESEARCH GAP


EXAMINE

ESTABLISH

EXAMINE

ESTABLISH

Research Objectives:

• Current experiential

marketing;

• M-commerce

conditions;

• Influential factors;

• A theoretical model

with proposed

customer experience

dimensions;

• The hypotheses of

customer experience

effect on customer

satisfaction and

behavioural intention;

• The proposed model

by using statistic

(factor analysis)

instrument;

• Generalized

marketing strategies

by putting m-

commerce-related

services into

application;

Research Aim:

Identify customer experience dimensions

(when customers use m-commerce-related services for fashion shopping),

and examine customer experience’s direct effect on customer satisfaction and

behavioural intention (in the fashion m-commerce context),

thereby establishing corresponding marketing strategies.

….AIM & OBJECTIVES


EXAMINE ESTABLISH EXAMINE ESTABLISH

Mobile Marketing

Experiential Design/

Marketing

Customer Experience

Trust

Accessibility

Environment

Benefits

Convenience

Safety

?

Customer

Satisfaction

Behavioura

l Intention

Support

Loyalty

Advocacy

Awareness

Consideration

Intent

Purchase Mobile

Commerce

….HOW? (Research Process)


Then, analysing the results of the

proposed theoretical model….


Environment

EN5

E27

.79

EN4

E26

.73

EN3

E25

.82

EN1

E24

.77

Benefits

BE5

E33

.74

BE4

E32

BE3

E31

.88

BE2

E30

.86

BE1

E29

.84 .80

Convenience

CO3

E16

.74

CO2

E15

.70

CO1

E14

.73

Accessibility

AC5

E13

AC4

E12

AC3

E11

AC2

E10

AC1

E9

.74 .77 .86 .80 .84

Utility

UT6

E5

UT5

E4

UT4

E3

UT2

E2

UT1

E1

.75 .76 .66 .72

Incentive

IN3

E37

IN2

E36

IN1

E35

.81 .73 .84

Trust

TR2

E20

TR1

E19

.82 .85

.71

.44

.49

.60 .60

TR3

E21

.79

TR4

E22

.75

TR5

E23

.67

UT8

E6

.74

CO5

E17

.80

.56

.58

.57

.71

.50

.48

.56

.75

.38

.59

.77

.51 .65

.60 .68

.66

.69

….RESEARCH MODEL SHOWING THE SEVEN DIMENSIONS’ CORRELATION


7 experience dimensions (in oval frames) with 32 measurement items (in rectangular frames)

were validated as:

Utility, Accessibility, Convenience, Trust, Environment, Benefits and Incentive Experience.

(the figures showed the correlations among different factors)

Environment

EN5

E24

.78

EN4

E23

.73

EN3

E22

.83

EN1

E21

.77

Benefits

BE5

E29

.74

BE4

E28

BE3

E27

.88

BE2

E26

.86

BE1

E25

.84 .80

Convenience

CO3

E14

.74

CO2

E13

.70

CO1

E12

.76

Accessibility

AC5

E11

AC4

E10

AC3

E9

AC2

E8

AC1

E7

.74 .77 .87 .80 .84

Utility

UT6

E5

UT5

E4

UT4

E3

UT2

E2

UT1

E1

.75 .76 .67 .72

Incentive

IN3

E32

IN2

E31

IN1

E30

.82 .73 .84

Trust

TR2

E17

TR1

E16

.82 .84

TR3

E18

.79

TR4

E19

.75

TR5

E20

.67

UT8

E6

.75

CO5

E15

.79 .69

Customer

Experience

.76 .75 .73 .82 .76 .95 .62

D1 D2 D3 D4 D5 D6 D7

Customer

Satisfaction

CS1 E33

.86

CS2 E34

.76 Behavioural

Intention

BI1 E36 .85

BI2 E37

.80

E39 E40

.55

.44

.27

CS3 E35 .87

BI3 E38

.90

….FINAL RESEARCH MODEL


In the final research model:

• Seven factors were verified as the dimensions for fashion customer experience in m-commerce context;

• Based on the correlation between the dimension and customer experience from the highest to the lowest, including benefits (0.95), trust (0.82), utility (0.76), environment (0.76), accessibility (0.75), convenience (0.73) and Incentive (0.62);

• Customer experience was proved to exert positive influence on customer satisfaction and behavioural intention;

• The customer satisfaction was also proved to effect positively on behavioural intention, in accordance with the hypotheses.


In order to assist fashion brands and retailers in establishing

appropriate strategies and tactics to distribute customer

experience better through one of the most typical and

strongest experiential channels – mobile phones....

Next, putting theory into practice…


Fashion

Customer

Experience

in M-commerce

Environment

Sensory

Simulation

Product

Presentation

Website/

Application

Feature

Less

Time

Less

Effort

Convenience

Accessibility

Visual

Effect

Font

Image

Icon

Animation

Music Video

Image

Enlargement

Additional

Views

Real

Model

Show

Clear

Layout

Benefits

Functional

Emotional

Incentive

Monetary

Non-

monetary

Discount

Sale

Promotion

Exclusive

Trust

Interpersonal

Institutional

Security

Ubiquity

Time

Place

Speed

Availability

Product Service

Information

Use

Learn

Utility Responsiveness

Information

Quality

Product

Features

Attractiveness

Abundance

Sociality

Customization

Control

Contextual

Quality

Pleasure Arousal

Seamless

….OVERVIEW OF FASHION CUSTOMER EXPERIENCE

IN M-COMMERCE


The overview of fashion customer experience in m-

commerce context, can be referred by fashion companies

as a detailed conceptual guidance when developing m-

commerce services


Customer

Expectation

Analysis

M-commerce

Service Design

Mobile Website

/Application

Design

Customer

Experience

Control

Customer Expectation

Customer Experience

Customer Satisfaction

Behavioural Intention

Demand Generation

Browse & Research

Configure & Quote

Shop & Transact

Fulfill, Serve & Support

Optimize

Accessibility Convenience Environment Trust Incentive Utility Benefits

Customer Loyalty

Customer Advocacy Recommendation

Repurchase 2nd , 3rd

Unsatisfied Satisfied

….EXPERIENCE VALUE CHAIN FOR LONG-TERM

CUSTOMER EXPERIENCE MANAGEMENT


runs through the three stages of before, during and after

experience, and reveals to fashion brands and retailers the

process of value creation based on customer experience

design and delivery.

In the meanwhile….

Various services which are specific for mobile phones

should be integrated into fashion company’s m-

commerce strategy.

The Experience Value Chain,


RFID

Mobile

Device

Mobile Website

Network

Access

Fashion

Retailer

Mobile

Web

Server Customer

Community

Database

Product

Category

Database

Payment Server

SMS

MMS

QR Code

Push-in

Message

Mobile Email

Bar Code

Smart Phone

Traditional

Phone

Mobile

Application

Customer

Database

M-Banking

M-Bill

M-Cash

GPRS

EDGE

3G

Bluetooth

Wi-Fi

Social

Network

M-Voucher

M-Coupon

….INTEGRATED M-COMMERCE SERVICE MODEL


The robust m-commerce model based

on fashion customer experience and

different mobile services was

established, for companies to better

understand the ‘experience flow’ in m-

commerce context.

Based on the results mentioned above….


Further understand broad issues and practical insights

Use the multidimensional model to identify and measure CE with your

MC strategies

Build the experience value chain for long

term CEM

Calculate the score of CE separately (on each dimension) or jointly (on total seven

dimensions)

Understand in which experience dimension (area) the brand is strong or weak, and how well they are doing on the whole customer

experience management (CEM).

Access the direct influence of CE on customer satisfaction and behavioural

intention

Provide a checklist of sorts that can address such issues as…(see next page)

….MANAGERIAL CONTRIBUTIONS

Build integrated m-commerce service

model


Does the fashion designer team fully recognise target consumer’s needs for fashion

product such as fashionability and novelty, and integrated it into product design?

Is the overall website or application environment consistent with brand image and

customer expectations?

Does the whole organisation understand the importance of both functional and

emotional benefits that consumer wants?

Are the third-part service providers such as mobile networks, online transaction servers

and online security protectors well incorporated into m-commerce service delivery?

How to increase the access speed and ease of use with minimum sacrifice of the

aesthetical effects such as visual simulation?

How to build brand community or social network through mobile phone and maximise

the word-of-mouth communication between customers?

How to integrate the m-commerce services into other channels such as physical stores

and online store through PC terminal?

Check List Example


THANKS FOR YOUR ATTENTION!

Mingming Yu

MA Design Management for the Fashion Industries

YU_10291700

[email protected]
