Customer Satisfaction with Experiential Marketing Impact: How in-store

experiences, pop-ups, or events influence brand perception and purchase intention.

Business Research Methods

Submitted by

Group 7, DIVISION: A

 Priyesh Nema E038

 Paridhi Bansal E039
 Poorvi Hattarki E040
 Yash Raj E042

Submitted To
Dr. Vengalarao Pachava

(Assistant Professor, School of Business Management, NMIMS Hyderabad)

 Abstract:
This research study examines the factors affecting the Experiential Marketing Impact: How in-
store experiences, pop-ups, or events influence brand perception and purchase intention and
analyses the role they play in achieving the Customer Satisfaction. For this study, the following
model consisting of the independent and dependent variables was adopted:

Attractiveness of Product
Availability of Product

Customer Satisfaction

Location of Store Staff Behaviour Price of Product

Conceptual Model for the Project

The Purpose of this study is to determine the most important independent variable and the
underlying factors affecting the Customer Satisfaction. The data was collected through
Google Forms and a total of 84 responses were received. Previous articles based on the
independent and dependent variables topic were gone through to understand about the
existing knowledge. An Exploratory Factor Analysis, Non-Parametric tests and a Multiple
Regression model was created to support the research.

After the Exploratory Factor Analysis, two factors were found to be significant in assessing
Public Transport Customer Satisfaction.

Introduction:
Customer satisfaction is driven by the in-store shopping experience, which has an impact on customer loyalty and
purchase decisions. This research aims to examine the relationship between customer satisfaction and five key
factors: elements of choice such as price, availability, attractiveness, staff behavior, and store location. The above
considerations are critical determinants of customer satisfaction in several retail situations.

Price is one of the crucial factors that affect the customers. Compared with the perceived value of products,
consumers find the price they consider is fair or reasonable can make them satisfied. Another important factor is
availability of desired and convenient products. For customers, encountering unavailable products is frustrating,
resulting in a bad shop.

Customer satisfaction is further brought about by the attractiveness of a store’s environment as well. Cleanliness
helps create a positive environment of a shop where customers find convenience when shopping is organized well
with proper layout, it can be more aesthetically pleasing than if things were cramped. Furthermore, store employees’
behavior is also vital on customer satisfaction determination. Satisfied customers will arise if the employees are
friendly, helpful, and knowledgeable; otherwise, dissatisfied customers will arise if the employees are rude,
inattentive, or unhelpful.

Thirdly, the place where a store is situated affects customer contentment. Shoppers feel more satisfied when they find
stores which are conveniently situated and nearby to their prospects than hard to reach stores.

The objective of this study is to explore how those five elements relate to customer satisfaction during the process of
in-store shopping. These results will help in identifying factors that make the purchasing activities by customers
more appealing and pleasurable thus giving an opportunity for retail stores to increase repeat customers by satisfying
them.
The questions asked to the respondents were based on the “Likert Scale” and for each of the Independent variables,
three – five questions were asked. The questionnaire also inquired the respondents about their gender, age group and
income levels to understand the In Store Shopping experience. The data was collected from the respondents using
Google Forms.
Methodology:
This study utilised various Statistical tools for data analysis such as JMP Pro and MS
Excel.
The analysis involves the following things:
o Descriptive Statistics: This will include the Frequency Distribution of Gender, Income

o Exploratory Factor Analysis: This analysis will help us identify the variables that
contribute the most to each factor which will be formed with the help of factor
loadings. Individual names would be given to those factors accordingly. This shall
help us establish patterns in the data to understand that those factors lead to good
Customer Satisfaction.
o Summated Scale Multiple Regression Model: A multiple regression model will be
created with the help of Summated Scale of the responses of each independent variable.
This was done on MS Excel. The Likert scale questions were modified on a scale of 1-
5 with the negative responses starting from 1 and the most positive ones being give a
5. E.g., Very Dissatisfied = 1 and Very Satisfied = 5.
o Non-Parametric Tests: Tests involving Hypothesis such as Chi-Sq Test of
Independence, Wilcoxon Signed Rank Test and Kruskal Wallace Test.
Literature Review:
Availability of the product:

The research papers we summarized each focus on customer satisfaction and its impact on
customer loyalty. The first paper investigates the antecedent elements that impact purchaser
pride within the context of online buying. It concludes that fee, ease of use, and availability of
a couple of payment alternatives have a wonderful effect on customer delight. The 2nd paper
examines the elements that have an impact on patron loyalty in Vietnam's ceramic enterprise.
It unearths that consumer satisfaction and switching costs have a high-quality effect on
customer loyalty, and that price, product first-class, and provider excellent do not directly
have an effect on client loyalty through their impact on purchaser pride.These findings
endorse that organizations should prioritize improving purchaser satisfaction so that it will
foster patron loyalty. This may be done by way of specializing in imparting a user-friendly
website, supplying a couple of price options, keeping competitive charges, and making sure
the quality of services and products. Additionally, agencies must decrease switching costs by
using making it clean for clients to keep doing enterprise with them.

Attractiveness of product:

Understanding the factors that have an effect on customer relationships is important for
agencies in search of to maintain sturdy partnerships and reduce the risk of customer
switching. Researchers have explored the dynamics of those relationships via numerous
research, examining the impact of purchaser attractiveness, dealer delight, preferred client
reputation, credible online critiques, logo fairness, consumer delight, repurchase intention,
and supplier switching choices. Customer attractiveness, defined via a supplier's notion of a
purchaser's desirability, is prompted by way of factors such as buy extent, payment terms,
technical expertise, and market have an effect on. Supplier satisfaction, then again, displays a
provider's assessment of the connection with a selected patron and is influenced by order
accuracy, communication, fairness, and innovation. Preferred customer fame, granted by
suppliers to their most valued clients, provides a preferential remedy, which includes
precedence access to products, favorable pricing, and one-of-a-kind product offerings.
Credible online critiques, brand fairness, and customer delight were proven to undoubtedly
impact the repurchase aim in the splendor enterprise. Effective verbal exchange, acceptance
as true, client pleasure, and relative beauty play an extensive function in dealer switching
selections in the electronics enterprise. By knowledge of those factors and implementing
techniques to beautify client splendor, supplier satisfaction, and emblem equity, groups can
give a boost to dealer-patron relationships, reduce client switching intentions, and foster long-
term success.

Price of product:

Understanding client behavior is crucial for organizations to foster consumer loyalty and
make sales grow faster. This study delves into the factors influencing customer buying
behavior, especially examining the effect of product excellent quality, (logo) emblem picture,
pricing, packaging, and product data. The observation employed structural equation modeling
and found that all of those elements had a fine and full effect on customer satisfaction and
customer loyalty. Additionally, pricing and packaging have been found to significantly
impact customer buying, indicating that corporations have to cautiously bear in mind those
components while designing advertising and sales techniques. By understanding those key
factors, agencies can successfully attract and hold clients, in the long run accomplishing long-
term achievement in the competitive marketplace.
Staff Behaviour:

Across various industries and services, staff behavior continuously emerges as a vital
determinant of purchaser pride. A friendly, well-mannered, and useful group of workers
interactions continuously makes contributions to good client reports and fosters loyalty. This
holds true within the restaurant industry, in which private factors like friendliness and
mindset are specially valued, as well as within the hospitality sector, in which young clients
particularly recognize attentive and empathetic services. Similarly, in the banking region, a
pleasant and knowledgeable workforce can substantially beautify client satisfaction. Even in
public transportation, wherein transport traits like affordability and frequency play a chief
position, cleanliness, comfort, and beneficial team of workers interactions can make a good
sized difference in customer perceptions. Therefore, making an investment in staff behavior
education and developing a customer-centric technique is paramount for companies
throughout various industries. By prioritizing team of workers' behavior and fostering a
wonderful and welcoming service lifestyle, companies can reap the rewards of extended
purchaser pride, loyalty, and in the long run, long-term period business achievement.

Location of the store:

The location of a store performs a critical position in influencing consumer pleasure and
commercial enterprise achievement. Studies have continuously proven that factors such as
accessibility, visibility, and proximity to target customers notably affect customer delight and
buy selections. In addition to those factors, the general ambiance and design of the shop
additionally contribute to purchaser perceptions and satisfaction. By cautiously considering
location elements and making sure that the store surroundings are conducive to high-quality
purchaser studies, corporations can beautify consumer pleasure, foster loyalty, and in the long
run drive enterprise growth.
Data Analysis:
1. Descriptive Statistics:

o Among the 84 respondents from the survey, 38 were Male and 46 were Female.

o The most dominant age category in the study was the age group of 18-24 and the
least one was 65+.

From this, it can be inferred that the Median Age of the respondents lies between the age
groups of 18-24 and 25-34.
Overall, from these statistics it can be said that the most frequent users of Branded
Clothes users lie are the age groups of 18-24 and 25-34 years.
 2. Exploratory Factor Analysis: This procedure was carried out on the JMP PRO
Software. The responses of the Likert Scale questions were modified on Microsoft Excel
and were imported on JMP.
The first step was to convert the Measure Scale from Ordinal to Scale. Then the Factor
Analysis was performed.
The option of Absolute Value of Coefficients was set at “0.5” for the process. This is the minimum value of
the factor loadings which was chosen to deliver optimal factors. The values below 0.5 were considered
weak and insignificant. It helps to declutter the output.
The results of the KMO and Bartlett’s Test were as follows:

We see that the KMO measure of Sampling adequacy is 0.826. Since this value is greater
than 0.7, this indicates that the variables are well suited for Factor Analysis and the sampling
adequacy is good.
For the Bartlett’s test of Sphericity, the significance is less than the P value (0.05). This
indicates that there is a Strong correlation between the variables.
Both the tests suggest that the data is well suited for Factor Analysis.
The Total Variance Extracted from each of the 5 factors is shown
below:
Components having Eigenvalues less than 1 are rejected
Since the Eigenvalues are the total variance explained by each individual component. Each of the
next components are derived from partialling put the previous component. The factors will be given
names after analysing the Rotated Component Matrix. The variance explained by each of the
factor is:

 Factor 1: 15.391%:
 Factor 2: 27.096%:
 Factor 3: 37.355%:
 Factor 4: 44.314%:
 Factor 5: 44.377%:
The cumulative variance explained by the 5 factors is 44%. The first two factors play a
crucial role in the explanation of the variance.
These four factors were determined from the Rotated Component Matrix where the rotation
converged in 7 iterations.

As visible from the image, there are four factors formed. The abbreviations are the questions
of the independent variables. For example, Factor 1 shows that two questions form each
Safety and Security and Comfort, and one question form Cost and Affordability have high
factor loadings.
 Based on these results, the following names have been given to the dialled down factors:
 Factor 1: Convenience
 Factor 2: Likeliness to visit.
 Factor 3: User Experience decision factor
We can exclude the 4th factor as it has a negative value. So we should continue with the 3 factors

For the reliability analysis, the Cronbach’s Alpha Reliability test was conducted. The
results of the same are as follows:

In the context of transportation services, a Cronbach Alpha Measure of 0.8440 shows that the
factor Basic Needs and Safety is a reliable measure or there is good suitability of variables to
measure of customer satisfaction. This means that the scale may be used to confidently
investigate the extent of satisfaction among passengers with one-of-a-kind aspects of
transportation services, consisting of safety, security, comfort, efficiency, punctuality, and
customer support.

The Average Variance Extracted for each of the factors was calculated in Microsoft Excel.
The formula to calculate the same was as follows:
=(λ^2)/n
Where λ is the Loading Factor. The Average Variance Extracted for Factor 1 was found
out to be:
λ λ^2 ε= (1- λ^2)
0.677 0.459 0.541
0.651 0.425 0.575
0.528 0.279 0.720
0.574 0.330 0.670
0.561 0.315 0.684
2.99 1.807 3.192
SUM

N 5
Avg Variance Extracted 0.3614882

Similarly, the average variance extracted for rest of the three factors:
  Convenience: 0.4361488
 Likeliness to visit: 0397676
 User Experience decision factor: 0.331447
Factors 1 and Factors 2 have Cronbach’s Alpha Reliability measure of 0.767 and 0.715 along
with the average variance extracted of 0.4361 and 0.3976. Here the reliability measure is
good, and the AVE extracted is marginal so these two factors can be taken into consideration
to be the final factors.
3. Summated Scale Multiple Regression Scale Model:
For this procedure, firstly the responses of the of the Likert Scale questions were converted
into a Numeric Scale on a range of 1-5. The converted sheet looks like this:

As it can be seen in the image that the top row has three columns highlighted in different
colours which are the independent variables
Then, the average of the of all the responses of the questions of an independent variable was
taken. This was done for all the variables, and this is the Summated Scale. The new modified
sheet looks like follows:
After this, regression was performed and the null and alternate hypothesis for the same was
as follows:
Null Hypothesis: There is no significant relationship between the dependent variable
Customer Satisfaction and independent variables.
Alternate Hypothesis: There is significant relationship between the dependent variable
Customer Satisfaction and the independent variables.

Summated Scale Model

The Regression output is shown as follows:

Observing the Significance value (ANOVA test), it can be seen that the it is significantly lower
than 0.05 which means that we will reject the Null Hypothesis (H0) which indicates that there is
significant relationship between the independent variable and the independent variables.

The R-square value of 0.4535 indicates that the model explains 45.35% of the variance in
the dependent variable. The Multiple R value of 67.34% explains that the model can capture
good amount of variance and that the model is a good fit for the data involved.
The Regression Equation of the Model is:

CS = .1988*CV-0.0230*SVA+0.2239*PTQ+ 0.2860*SB+ 0.3253*SL

where,
 CS= Customer Satisfaction
 CV= Clothing Variety
 SVA= Store Visual Appeal
 PTQ= Price to Quality
 SL= Store Location
 SB= Staff Behaviour
 SV= Customer Satisfaction measuring store visit

For example, one unit of increase in Clothing Variety will lead to 0.1988 times increase in Customer
Satisfaction.

4. Non-Parametric Tests:
After looking at the findings and insights of the Exploratory Factor Analysis and the Multiple
Regression Model, Comfort, Safety and Security, Customer Service and Cost and Affordability
were considered as the important variables the following tests were conducted on the dataset.

 Wilcoxon Signed Rank Test (Paired Sample and One Sample)

 Chi-Square Test of Independence
 Kruskal-Wallace Test
The Summated Scale data was imported into JMP, and the first step was to check the
distribution, whether the data is normally distributed or not.

Beginning with a very basic One Sample Wilcoxon T-test. We chose the basic dependent
variable question of How satisfied were the customers with the Physical in-store experiences
in their area?
 Analyzing the histogram visually, we can see that there are outliers in the data, therefore it
can be interpreted that data is not distributed normally and therefore, the Wilcoxon Signed
Rank will have to be administered.
Null Hypothesis: The Measure of Central tendency for the dependent variable of Customer Satisfaction is
greater than or equal to 4
Alternate Hypothesis: The Measure of Central Tendency for the dependent variable of Customer
Satisfaction is less than 4
The P-value of 0.6095 is greater than 0.05 which indicates that we fail to reject the null
hypothesis. Therefore, people are not satisfied or dissatisfied with the customers with the
Physical in-store experiences in their area, but they are content with it.

The Wilcoxon Signed Rank Test (Independent Sample) of by Gender was conducted to find
out whether there was significant differences in views among men and women.

Null Hypothesis: There is no difference in measures of Central Tendency of Clothing Variety

between Men and Women.

Alternate Hypothesis: There is a difference in the measures of Central tendency of Clothing

Variety between Men and Women.
Since the P-Value is greater than 0.05, it can be interpreted that we fail to reject the null
hypothesis which states that there in no difference in measures of Central Tendency of
Clothing Variety between Men and Women.

Next, the following Kruskal-Wallace Tests were administered:

 Price to Quality by frequency of shopping branded clothes

 Staff Behavior by occupation

The hypothesis for the first test is as follows:

Null Hypothesis: There are no differences in central tendency of Customer Service of the age groups.
Alternate Hypothesis: There is a difference in central tendency of Customer Service of the age groups.

After analysing the output, we see that the P-value is 0.0010, which is less than 0.05. This
indicates that we will reject our Null Hypothesis. This means that there is a difference in
Central Tendency of Customer Service of the age groups.

This could be because of the number of times people shop from online stores their perception
of quality changes and they may be getting better quality clothes at a much cheaper range and
when they shop from offline stores they might not be getting the same quality at the same
price.
Staff Behavior by Occupation
Null Hypothesis: There are no differences in central tendency in Staff Behavior of different
occupations.
Alternate Hypothesis: There is a difference in central tendency in Staff Behavior of different
occupations.

Since the P-Value here is 0.2777, we will fail to reject our null hypothesis.
The final test is CHI-Square test for independence. The categories of frequency of shopping of branded
clothes and gender variables were chosen for this test.

The null and hypothesis for this is as follows:

Null Hypothesis: There is no association between frequency of shopping branded clothes and gender.
Alternate Hypothesis: There is association between frequency of shopping branded clothes and gender.

The results of the test show a P-Value of 0.5494 which is greater than 0.05 which states that we will reject
the null hypothesis which states there is association between frequency of shopping branded clothes and
gender.
From the above analysis, we can say that the two most crucial factors are:

o Factor 1: Store Location

o Factor 2: Staff Behavior

The Regression Model also backs this claim with having the highest coefficients for Store
Location and Staff Behavior.

Conclusion:

This research study aimed to become aware of and examine the elements influencing client pride in Shopping with
the In store experience. Through a comprehensive technique involving records collection through the Google Forms,
exploratory factor analysis, multiple regression modelling, and nonparametric assessments, key insights were gained.
We have a look at and determined Five Critical Factors: Availability, Attractiveness, Price, Staff, Location. These
elements were extracted from analysis of Likert scale responses, ensuring a dependable and valid illustration of
consumer sentiments. The Regression Model further reinforced the significance of Price to quality, price to Quality,
Store visual appeal, Staff behavior, Store Location in influencing purchaser delight, with Store Location and Staff
Behavior rising as the most essential elements. Non-parametric tests provided additional insights, indicating
variations in purchaser perceptions based totally on age, occupation, frequency of shopping branded clothes and
gender. The findings propose that addressing problems associated with Price to quality, price to Quality, Store visual
appeal, Staff behavior, Store Location can considerably enhance customer satisfaction in shopping in store
Experience.