MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HO CHI MINH CITY VU THI MAI CHI DOES CUSTOMER EXPERIENCE ALWAYS BENEFIT SERVICE COMPANIES? EXAMINING CUSTOMERS’ EPISTEMIC MOTIVATION AND INTE[.]
RESEARCH OVERIEW
Research background and rationales of the research
In today's increasingly competitive global market, especially within the service sector, companies must focus on maintaining distinct competitive advantages to succeed (Gentile, Spiller, and Noci, 2007; Lovelock, Patterson, and Wirtz, 2015) Customer experience has emerged as a critical factor that service companies can leverage for competitive differentiation (Lemon and Verhoef, 2016; Pine and Gilmore, 1998) Recognizing this, many service firms prioritize enhancing customer experience by making it a top strategic goal and appointing dedicated executives for customer experience management (De Keyser, et al., 2020) All customer touchpoints—before, during, and after service consumption—play a vital role in shaping the overall experience, emphasizing the need for a comprehensive approach to customer engagement and satisfaction.
A single negative touchpoint can significantly undermine an organization’s efforts to deliver an exceptional customer experience, which is crucial for generating revenue, fostering customer loyalty, and creating a distinctive company culture (Rawson & Jones, 2013; De Keyser et al., 2020; Siqueira et al., 2020; Thakur, 2016; Homburg et al., 2017) According to the 2019 Acquia report, over 76% of consumers globally will switch to a competitor after just one bad experience, highlighting the importance of effectively managing customer interactions (Brown, 2019) Focusing on delivering a positive customer experience can lead to significant improvements in overall business performance, both financially and in customer retention Customer experience is defined as the internal and subjective responses—cognitive and affective—that customers have during direct or indirect contact with a brand (Meyer &).
Understanding customer experience is essential for executives to effectively design their services and gain a competitive edge (Schwager, 2007; De Keyser, et al., 2020; Pullman and Gross, 2004; Teixeira, et al., 2012) In today's competitive landscape, consumers seek not only quality products or services but also unique and memorable experiences, making the mastery of customer experience crucial for long-term business success (Stein and Ramaseshan, 2016; Pine and Gilmore, 1998).
Besides, previous studies have empirically demonstrated the effect of customer experience on several positive outcomes (Pine and Gilmore, 1998; Klaus and Maklan, 2012; Mascarenhas, Kesavan and Bernacchi, 2006; Pullman and Gross,
Companies respond to customers and create markets by designing unique experiences that provide a competitive advantage, leading to better business outcomes such as increased customer retention and profitability (Bolton et al., 2009; Verhoef et al., 2009) Positive customer experience emotions are linked to favorable results like satisfaction and repurchase behavior, while negative emotions can result in dissatisfaction and avoidance (Holbrook and Batra, 1987; Russell, Weiss, and Mendelsohn, 1989) Customer experience significantly influences business performance, particularly in marketing outcomes, and creating positive experiences is associated with successful performance results (Prahalad and Ramaswamy, 2004; Camarero, 2007; Rose et al., 2012) Today, modern marketing emphasizes brand and customer engagement, making the exploration of factors affecting engagement crucial both academically and practically (Kumar, 2019; Khan et al., 2020; Pansari and Kumar, 2016; Meire et al., 2019; Rather, 2020; Jessen et al., 2020) Existing research has debated the conceptual structure of customer engagement, but empirical studies on its antecedents remain limited, raising key questions about whether customer experience drives engagement or vice versa Understanding this relationship is essential for advancing both theory and practice.
In the evolving role of customers as "partial employees" during service creation, customers significantly influence a firm's operational efficiency and service quality through proactive behaviors such as customer citizenship (Groth, 2005; Keh and Teo, 2001) Social identity theory explains that individuals derive their self-conception from membership in social groups, which carries emotional significance (Tajfel, 1974), motivating consumers to engage in social behaviors that reinforce their group identity, such as online community participation (Dholakia et al., 2004) According to Brewer (1991), people define themselves through group affiliations and strive to enhance their group's status; higher levels of customer-company identification lead consumers to view themselves as part of the organization, fostering positive attitudes and behaviors that support company goals (Ran and Zhou, 2019) Based on Social Identity Theory, this research investigates the mediating factors that connect customer experience to customer engagement.
Individuals exhibit significant differences in their dispositional need for cognitive closure (NFC), which influences how they seek and process information (Kruglanski & Webster, 1996; Calogero et al., 2009) High NFC individuals tend to dislike ambiguity, favor quick decision-making, and are characterized as closed-minded, whereas low NFC individuals tolerate ambiguity better, prefer deliberate decisions, and remain open-minded (Webster & Kruglanski, 1994; Kruglanski & Webster, 1996) Facial expressions are crucial in interpersonal interactions, as they can elicit affective reactions and influence behavior predictions (Hatfield et al., 1992; Frith & Frith, 2007) Research suggests that people with low epistemic motivation often base their actions on emotions conveyed through others' facial cues, making emotional expressions vital in understanding customer behavior in contexts such as beauty services (Van Kleef et al., 2009) The present study investigates how customers’ personality traits, particularly their motivation to process cues related to beauty services, impact their responses and engagement.
Customer experience is now a crucial factor for service businesses seeking sustainable competitive advantage, and it is fundamental to service design projects (Teixeira et al., 2012) Experiential marketing has emerged as an innovative strategy to fulfill consumers' emotional desires by creating sensational and memorable experiences, even within the beauty services industry (Jeon, 2013).
Recent years have seen increased research on experiential marketing within the cultural, fashion, cultural content, and design industries, focusing on elements like senses, feelings, thoughts, actions, and relationships (Schmitt, 1999) While there has been significant research on experiential marketing in the beauty industry, particularly in cosmetics, studies specifically targeting beauty salons remain limited and mostly focus on emotional or relationship marketing Overall, comprehensive research on experiential marketing tailored to beauty salons is scarce and nearly nonexistent (Jeon, 2013).
The 4.0 era is marked by rapid and comprehensive development across all aspects of life, leading to a surge in beauty demands among female consumers Many beauty establishments now focus on enhancing customer experience by integrating modern equipment, innovative beauty techniques, and advanced technology However, as the beauty industry grows rapidly, the increasing number of establishments makes it challenging for customers to identify reliable options that meet their needs Selecting the right beauty clinic is only part of the challenge, as service quality and convenience also play a crucial role Despite significant investments in beauty products and equipment, many establishments fall short in providing a seamless customer experience, especially in terms of connected solutions and service convenience, which are essential in the connected era of 4.0 (Isalon, 2011).
Research gaps
Recent research on customer experience within the service industry has predominantly focused on identifying the factors that shape customer experiences (Alnawas and Hemsley-Brown, 2019; Quach et al., 2020; Chylinski et al., 2020) However, a significant gap exists in understanding how customer experience varies across different contexts, such as industry sectors and cultural backgrounds (Verhoef et al., 2009; Shobeiri, Mazaheri, and Laroche, 2018; Hwang and Seo, 2016), with studies indicating that attributes like playfulness and aesthetics are valued differently by customers in the US compared to China (Shobeiri, Mazaheri, and Laroche, 2018) While efforts have been made to develop global measures of customer experience, these have primarily centered on financial services and require validation across diverse settings (Rose et al., 2012; Klaus et al., 2013; Garg et al., 2014; Fernandes and Pinto, 2019) Furthermore, theoretical frameworks such as Service-dominant Logic emphasize provider-centric activities, whereas Customer-dominant Logic shifts focus toward customer-centric activities that encompass the entire service experience (Heinonen et al., 2010) Notably, previous studies have concentrated on core activities related to value co-creation but have largely overlooked other activities that contribute to service value and the consumer-created aspects of customer experience (Rose et al., 2012; Garg et al., 2014; Keiningham et al., 2017; Fernandes and Pinto, 2019; Kuo and Chen).
Klaus and Maklan (2012) developed a comprehensive measure of customer experience encompassing four key dimensions: product experience, outcome focus, moments-of-truth, and peace-of-mind, representing higher-order perceptual perceptions Despite its potential, this model has seen limited empirical testing, with only two studies exploring its application in the mortgage and hotel industries (Klaus and Maklan, 2012; Lemon and Verhoef, 2016) This research aims to assess the applicability of Klaus and Maklan’s (2012) customer experience framework within the context of beauty services in Vietnam, providing more detailed and actionable managerial implications.
Current research has largely overlooked the different aspects of customer and service context factors that convert customer experience into positive business outcomes (Teixeira et al., 2012; Klaus and Maklan, 2012) Most studies focus solely on customer experience as a determinant of customer commitment, perceptions, and behaviors (Khan et al.,., 2015; Klaus and Maklan, 2012; Sharma and Chaubey, 2014; Garg et al.,., 2014) Therefore, understanding the mechanisms that enable customer experience to drive favorable company results is essential Since customer engagement behaviors encompass various actions that benefit businesses, employing a multi-dimensional approach to explore the relationship between customer experience and engagement behavior provides a more comprehensive understanding of their impact (Roy et al.,., 2020; Ng et al.,., 2020).
Previous studies have explored the impact of customer engagement behavior; however, their research approaches are based on various theoretical frameworks rather than Social Identity Theory Notable research includes works by Libai et al (2010), Brodie et al (2011), Kumar, Peterson, and Leone (2010), Kumar et al (2013), Hollebeek, Glynn, and Brodie (2014), and Bueno et al., which collectively highlight diverse perspectives on customer engagement without focusing specifically on Social Identity Theory.
Recent research highlights the need for further studies to understand how customer experience can lead to customer engagement behavior through innovative approaches Customer experience itself is shaped by individual personal factors, such as extraverted personality, conscientiousness, and openness, rather than solely by companies’ efforts (Heinonen & Strandvik, 2015; Mann & Rawat, 2016) Social identity theory explains that when customers value their interactions with service staff and companies, they are more likely to identify with the brand, leading to positive post-experience behaviors (Mael & Ashforth, 1992; Hong & Yang, 2009) During service encounters, customers actively contribute and co-produce value, making customer motivation a critical element in the process This study builds upon Customer Dominant Logic and Need for Cognition Theory, emphasizing the role of individual cognitive frameworks—particularly epistemic motivation, which reflects a person's desire to develop a comprehensive understanding of their current situation (D'Andrade, 1992; Singer & Salovey, 1996; Wang Ze et al., 2017; Cote & Hideg, 2011).
Beauty services are defined as personal services where customer experience plays a crucial role in co-creating the service outcome (Konishi, 2016) According to Konishi (2016), services are classified into two groups: those evaluated based on credibility, such as medical or legal services, and those evaluated based on customer experience, including beauty care, resorts, and restaurants Beauty services fall into the latter category, emphasizing the importance of customer experience Currently, there is limited research exploring how customer experience influences positive company outcomes in beauty services, especially within Vietnam This research aims to fill that gap by examining the mechanisms and conditions under which customer experience impacts business success in Vietnamese beauty services.
Research aims
This research, conducted within the context of the Vietnamese beauty industry, aims to validate the customer experience scale and explore how customer experience influences customer engagement behavior, considering the underlying mechanisms and conditions Building on Customer-Dominant Logic, Social Identity Theory, and the Need for Cognition, the study proposes that customer experience promotes customer engagement behavior through identification with both the customer-employee and customer-company, with this relationship being moderated by customer epistemic motivation The research framework is structured into three main sections, focusing on the mediating role of customer-employee identification between customer experience and engagement behavior.
This article examines the mediating role of customer-company identification in the relationship between customer experience and customer engagement behavior, highlighting how strong identification can enhance engagement Additionally, it explores the conditional role of customer epistemic motivation in influencing the indirect relationship between customer experience and engagement behaviors The study develops formal hypotheses, employs a rigorous methodology, and discusses the results to provide valuable insights into customer engagement strategies.
Research objectives and questions
Relating to the aim of the research showed in section (1.2), the following research questions/objectives are formulated with expected solutions
Objective 1: Determine whether customer engagement behavior is the outcome of customer experience in the beauty service context The two corresponding research questions developed were:
1.1 Is customer engagement behavior the outcome of customer experience in the beauty service context?
1.2 How does customer experience effect customer engagement behavior in the beauty service context?
Objective 2: Examine the mediating roles of customer-firm and customer-employee identification in the relationship between customer experience and customer engagement behavior of the beauty service context The two corresponding research questions developed were:
2.1 Are customer-firm and customer-employee identification the mediators in the relationship between customer experience and customer engagement behavior of the beauty service context?
2.2 How are the mediating roles of customer-firm and customer-employee identification in the relationship between customer experience and customer engagement behavior of the beauty service context?
Objective 3: Examine the moderating roles of customer epistemic motivation in the indirect relationship between customer experience and customer engagement behavior of the beauty service context The two corresponding research questions developed were:
3.1 Does customer epistemic motivation play the moderating role in the relationship between customer experience and customer engagement behavior of the beauty service context?
3.2 How is the moderating role of customer epistemic motivation in the relationship between customer experience and customer engagement behavior of the beauty service context?
Objective 4: Identifying the demographic variables control customer engagement behavior in the beauty service context The corresponding research question developed was:
4.1 Which demographic variables control customer engagement behavior in the beauty service context?
Research context
The beauty service industry is dedicated to helping individuals achieve their best appearance while offering emotional and physical benefits, contributing to its consistent growth and resilience Despite economic downturns, such as the recent recession, beauty businesses remained robust (Professional Beauty Association, 2020) The global healthcare sector, including the beauty industry, expanded by 12.8% between 2015 and 2017, reaching a market value of $4.2 trillion (Global Wellness Institute, 2018) The beauty industry alone is valued at over $500 billion worldwide, with the US market accounting for $93.5 billion in 2019 and the skincare segment reaching nearly $135 billion The industry continues to grow rapidly, introducing new products and services daily, and employment in beauty services is projected to increase by 10% for barbers, hairdressers, and estheticians, and nearly 22% for massage therapists by 2024 Asia, particularly Vietnam, is the fastest-growing market after Europe, with a surge in cosmetic brands, salons, and spas, reflecting rising beauty awareness among young and middle-aged consumers with moderate income levels.
The British Beauty Council and Britain Thinks have collaboratively developed a comprehensive definition of the beauty service industry, incorporating insights from various sectors to reflect its evolving nature This consensus emphasizes that the industry encompasses a range of services, including holistic treatments, beauty treatments, and hair services (British Beauty Council, 2019) Additionally, market surveys in Asian countries like Hong Kong, Taiwan, Japan, Singapore, and Korea highlight the growing importance and diversity of beauty services across different regions.
There are three main types of beauty services: traditional beauty salons offering hairdressing, perming, and make-up; aesthetic salons providing skincare and body care treatments using manual techniques, cosmetics, and equipment; and cosmetic surgery clinics specializing in enhancing appearance through surgical and medical procedures Specifically, plastic surgery is a surgical specialty focused on reconstructing facial and body defects caused by birth disorders, trauma, burns, or disease.
Schmenner (1986) classifies the service industry into four patterns based on labor intensity and customer interactions, with labor intensity measuring the ratio of labor waste to value added, and customer interaction indicating the frequency of contact between service providers and customers Beauty services are categorized as labor-intensive, requiring highly skilled professionals and active customer participation The interaction between the beautician and the customer plays a crucial role in shaping the service experience and achieving positive outcomes Consequently, this dissertation focuses on exploring the importance of customer-beautician interactions within the beauty service industry.
Figure 1.1 Categorize services by customer interaction
Konishi (2016) categorizes goods and services based on the ease of quality evaluation, distinguishing between tangible products, which are easy to assess, and intangible services, which are more challenging to evaluate Tangible goods are primarily evaluated through search qualities, allowing consumers to assess their quality before purchase In contrast, intangible services are often assessed via credence qualities, as their true value becomes clearer only after consumption Personal services are specifically evaluated through experience qualities, emphasizing the importance of customer experience in quality assessment This classification helps businesses understand how consumers perceive and evaluate different types of products and services for better quality management and marketing strategies.
Figure 1.2 Quality evaluations for goods and services
According to Konishi (2016), services are classified into two groups: those evaluated based on credibility, such as medical, repair, and legal services, and those assessed through customer experience, like beauty care, resorts, restaurants, and tourism Beauty services fall into the latter category, making their quality difficult to measure objectively Instead, the evaluation relies on customer experiences across various touchpoints with the brand, including interactions with beauticians, which can positively influence customer satisfaction and business success This distinction explains why the dissertation focuses on beauty services as its primary subject of study.
1.5.2 Beauty service industry in Vietnam
The Vietnamese beauty industry has experienced significant growth in recent years, transforming from an unpopular profession into a thriving market with high potential This surge is driven by increasing consumer demand for skin and body care services, resulting in a rapid rise of beauty service businesses in major cities like Ho Chi Minh City, Hanoi, Da Nang, Hai Phong, and Binh Duong Annually, approximately 2,000 new beauty establishments are established to meet market demand, employing around 2 million professionals in the field Skilled beauticians and practitioners are highly sought after, often earning high wages and boasting strong job security Despite a 15-20% annual growth in beauty establishments, many face challenges such as losing customers to competitors and ineffective marketing strategies, highlighting the competitive nature of Vietnam’s dynamic beauty industry.
As the demand for beauty services continues to rise alongside increasing perceptions of beauty's importance in daily life, Vietnam's beauty service industry is experiencing unprecedented growth The market's expansion is driven by economic development, social progress, and heightened beauty consciousness across all age groups Urban and rural areas alike are increasingly populated with beauty salons, spas, and clinics, yet this rapid growth has intensified competition, making market survival more challenging To succeed, beauty establishments must thoroughly understand their target markets, craft unique customer experiences, and identify new business opportunities Ho Chi Minh City stands out as Vietnam's largest beauty market, benefiting from policies promoting medical tourism, which attract both domestic and international visitors seeking aesthetic and health services As of September 2019, the city hosted 1,329 beauty service businesses, significantly contributing to Vietnam’s GDP and providing employment for thousands of workers.
Table 1.1 Classification of beauty services in Vietnam Beauty care service Beauty surgery service
Beauty salons Aesthetic salons Cosmetic surgery Plastic surgery
Hairdressing salons Spa (Day spa, beauty spa, clinic spa)
Manicure salons Massage (Foot massage,
In Vietnam's beauty industry, services are categorized into beauty care and beauty surgery Beauty care involves non-invasive procedures that do not cause bleeding or alter internal body structures, distinguishing it clearly from invasive beauty surgery, which aims to change physical appearance for cosmetic reasons According to Decision No 27/2018/QD-TTg issued by the Prime Minister on July 6, 2018, business owners must choose between registering as individual households or establishing a company to operate legally in the beauty care sector To better understand the service experience, the author conducted qualitative research across various industries such as tourism, hospitality, and beauty services The collected data revealed that the Vietnamese beauty service market is divided into two main sections, summarized in Table 1.1, reflecting the distinct nature of beauty care and beauty surgery services.
Beauty salons offer a comprehensive range of hair care services, including haircutting, shampooing, drying, curling, dyeing, and straightening, catering to both men's and women's hairstyling needs In addition to hair services, these salons also provide beauty treatments such as eyelash extensions and manicures, ensuring a complete grooming experience.
Aesthetic salons offer a range of health and wellness services that include sauna treatments, sunbathing, and massage therapies, excluding sports-related activities These salons focus on non-surgical methods to enhance beauty and well-being, such as skincare and body care services They provide a variety of treatments aimed at improving appearance and promoting relaxation without the use of surgical interventions.
Cosmetic surgery clinics offer clients invasive and non-invasive procedures, such as Botox and dermal fillers, to enhance and reshape their physical features These services are aimed at improving appearance and boosting confidence for cosmetic purposes rather than medical necessity.
Plastic surgery clinics: These services involve a surgical specialty in the reconstruction of facial and body tissue defects caused by illness, trauma, or birth disorders
The participation and level of interaction in each service section (beauty care service, beauty surgery service) is different The service experience process of section
The research prioritizes beauty salons as the primary setting due to their accessibility and ability to efficiently gather a large sample size Reaching survey subjects across a broad population can be time-consuming, so focusing on beauty salons enables quicker respondent engagement Additionally, expert interviews supported the choice of beauty salons as an ideal research location Consequently, the study was conducted within beauty salons to optimize data collection and ensure relevant, reliable results.
The origins of beauty salon services can be traced back to the ancient art of hairstyling in Egypt, Rome, and Greece, with the modern beauty industry developing along commercial lines in the late 19th century Technological innovations during this period fueled new hairstyle trends and increased demand for professional beauty services The first cosmetology schools in America, founded in the late 1890s, trained mainly women for this rapidly expanding profession Initially, the industry was dominated by small sole proprietorships, but the rise in purchasing power among working women in the 1970s and 1980s led to significant industry growth and a surge in corporate-owned salons.
In recent years, women have increasingly prioritized their physical appearance alongside their health, prompting the rise of beauty salons focused on enhancing beauty These salons utilize specialized techniques and treatments to transform women's appearances, offering enhanced confidence and self-esteem As a result, the beauty industry continues to expand, providing women with valuable opportunities to look and feel their best.
Table 1.2 Services offered by beauty establishes
Key terms
The beauty industry encompasses sales of cosmetics, perfume, and products for skin and hair care Beauty salons and spas are considered the service sector of the beauty industry (Grindstaff, 2020)
The beauty service industry primarily comprises three key areas: hairdressing, personal care, and body artistry (City of Adelaide, 2020) According to the Research Office & Legislative Council Secretariat (2019), these services are dominated by three main categories: beauty salons, aesthetic salons, and cosmetic surgery clinics.
Beauty salons providing conventional beauty services through hairdressing, perming and make-up (Research Office & Legislative Council Secretariat, 2019).
Research subject and scope
This research examines the impact of customer experience on customer engagement within beauty salons, providing valuable insights for salon managers to better understand customer behavior Conducted in Ho Chi Minh City, Vietnam—a fast-growing hub for the beauty salon industry—the study focuses on premium-priced salons targeting the upper middle class, as these customers tend to offer more reliable opinions on experience and engagement A total of 1,200 questionnaires were distributed across twelve top-tier beauty salons in the city, with female consumers of various experience levels completing surveys about their salon experiences.
Structure of the research
Introducing the research topic and a brief background following by problem statement, research question, research objectives, scope and limitations, the significance and structure of the thesis
Presenting the related literature concerning customer experience, customer engagement
Providing detail instrument of research model, research process, measurements and questionnaire design, data collection method and data analysis method
Analyze collected data and interpret into the findings of the research
Draw out conclusion and propose recommendations to enhance customer toward beauty salons in Ho Chi Minh City.
LITERATURE REVIEW
Review of Customer experience (EX)
In the early days, Abbott (1955) and Alderson (1957) focused on emphasizing that
Understanding that consumers prioritize satisfying experiences over products is central to contemporary marketing insights Experiential theorists emphasize the importance of emotional aspects in decision-making and consumption, highlighting that experience is a multifaceted concept with various definitions across contexts While general definitions provide broad understanding, detailed components such as senses, emotions, thoughts, physical actions, and social identities offer deeper insights into customer experiences The concept of customer experience first emerged in the 1980s, focusing on hedonic aspects like senses, emotions, and fantasy during consumption encounters Contemporary models outline multiple dimensions—including sensory, affective, cognitive, physical, social, and spiritual elements—that shape overall customer interactions Recent research underscores that customer experience comprises cognitive, emotional, social, and physical responses to service stimuli, emphasizing its multi-dimensional nature Recognizing these elements enables brands to craft memorable experiences that resonate emotionally and socially, strengthening customer engagement and satisfaction.
Pine and Gilmore (1998) popularized the concept of customer experience, sparking significant interest in both research and practical application Customer experience is defined as a series of interactions between the customer and a product or organization that elicit a response (Gentile, Spiller, and Noci, 2007) Past experiences play a crucial role in shaping current perceptions and responses (Verhoef et al., 2009) These experiences are personal, emotional, and memorable, involving customer perception, participation, and sharing with others (Walls, 2009) Pimpakorn and Patterson (2010) describe customer experience as the outcome of cumulative contacts with a service, emphasizing its importance in overall customer assessment Patrício et al (2011) advocate a broader view, suggesting that interactions happen within an extensive network of companies rather than just dyadic relationships Klaus and Maklan (2012) highlight that customer experience results from both cognitive and affective responses, though the sequence and its impact on customer behavior remain complex and not fully understood, urging managers to take greater responsibility for customer outcomes Srivastava and Kaul (2014) emphasize the vital role of personal interactions, which are central to building strong customer-employee relationships.
Customer experience has become a vital marketing concept focused on creating unique, enjoyable, and memorable interactions that foster customer loyalty and competitive advantage It is a strategic process that builds comprehensive customer value, emphasizing that traditional service value propositions are insufficient for differentiation in today’s market (Carbone and Haeckel, 1994) Customer value arises from the integration of multiple experience components, including cognitive, affective, sensory, and conative dimensions, making the concept multidimensional (Gronroos, 2006; Klaus and Maklan, 2012) Businesses must develop competencies in designing and managing customer experiences to deliver enjoyable memories and stand out from competitors Despite various definitions, the evolving understanding of customer experience highlights its importance in service marketing, with recent models offering comprehensive frameworks for analyzing this complex concept.
Table 2.1 Overview of some important definitions of EX
Customers’ perceptions of a service experience are influenced by three key factors: the technical performance (functional clues), the tangible elements (mechanic clues), and the behavior and appearance of service providers (humanic clues) These clues collectively shape both the rational evaluation and emotional perception of service quality, playing distinct roles in creating a memorable customer experience Optimizing these aspects is essential for delivering high-quality service that meets customer expectations and enhances satisfaction.
Customer experience is defined as the series of interactions between customers and a product or organization that evoke specific reactions It is a highly personal journey, involving various levels of engagement such as rational understanding, sensory perception, physical interaction, and emotional connection Focusing on these diverse aspects of customer experience can significantly enhance customer satisfaction and brand loyalty.
According to Grundey (2008), a subjective episode in the construction or transformation of the individual emphasizes the lived emotions and senses experienced during immersion This perspective highlights the importance of emotional and sensory experiences over cognitive aspects in personal development.
Customer experience encompasses the internal and subjective responses customers have during any direct or indirect interaction with a company Direct contact typically occurs during purchase, usage, or service interactions initiated by the customer, while indirect contact involves unplanned encounters such as word-of-mouth recommendations, reviews, advertising, and news reports Understanding both types of contact is essential for enhancing overall customer satisfaction and brand perception.
Customer experience is shaped by a series of interactions between the customer and a product, company, or its organization, which elicit specific responses This experience is highly personalized, depending on the customer's engagement and involvement at each touchpoint, making it a crucial factor for building strong brand loyalty and satisfaction.
Authors Definitions different levels (rational, emotional, sensorial, physical and spiritual)
The customer experience construct is a holistic concept that encompasses the customer's cognitive, affective, emotional, social, and physical responses to the retailer This experience is shaped not only by factors within the retailer's control but also by external elements that influence customer perceptions and interactions Understanding this comprehensive approach is essential for enhancing retail strategies and improving overall customer satisfaction.
Experience plays a dual role in consumer behavior On one hand, it is a learned outcome associated with predictable behaviors, enabling consumers to develop consistent responses over time On the other hand, experience also involves processes characterized by novelty, which can lead to unpredictable reactions and responses from consumers Understanding this duality is essential for marketers aiming to predict and influence consumer decisions effectively.
“Three characterisations of the concept of service experience are identified in the literature review: phenomenological service experience, process-based service experience and outcome- based service experience”
(Schmitt, 2011) “Brand experience consists of four separate, though related, dimensions: sensory, affective, intellectual, and behavioral”
Service experience encompasses the customer's overall assessment of their interactions with a service provider, both direct and indirect, which influences their likelihood to remain loyal through repeat purchases Key dimensions include product experience, outcome focus, moments of truth, and peace of mind, all contributing to shaping customer satisfaction and loyalty.
Service experience is a complex, multidimensional construct that includes a cognitive dimension focused on service quality, as well as two affective dimensions: positive activation, which encompasses feelings like enthusiasm and excitement, and positive deactivation, associated with relaxation and stress relief.
Customer experience as a journey that customers goes through where they accumulate awareness and response through every carrier contact with the service provider
Customer experience encompasses cognitive, emotional, physical, sensorial, spiritual, and social elements that shape a customer's interactions with market actors It represents the aggregate of all direct and indirect interactions, serving as the raw data that collectively define the overall customer experience By understanding these key components, businesses can enhance customer engagement and foster long-term loyalty.
Optimal experience, often referred to as "flow," describes a psychological state where individuals are fully immersed in an activity with intense concentration, intrinsic motivation, and a sense of enjoyment During this state, people feel energized, positively engaged, and deeply involved in the task at hand, leading to heightened focus and heightened overall well-being Achieving this mental state enhances productivity and personal fulfillment by aligning motivation and interest with the activity.
Customer experience is a vital driver of business success and competitive advantage, as it significantly influences customer loyalty and brand reputation (Lemon and Verhoef, 2016) According to the 2019 Customer Experience Trends Report, over 75% of consumers will switch to a competitor after just one negative experience, highlighting the importance of consistently delivering exceptional customer service to retain customers long-term (Brown, 2019) Investing in improving customer experience not only fosters customer loyalty and increases spending but also helps reduce operational costs, thereby boosting revenue (Kriss, 2014) Focusing on effective customer experience management can lead to substantial improvements in both the top and bottom lines, making it a critical aspect of business strategy (Brown, 2019) While measuring and managing customer experience remains complex, it remains a prominent area of research within service marketing, emphasizing the need to understand different customer states across various stages of their journey to tailor experiences effectively (Geyskens et al., 1999; Schmitt et al., 2009).
Review of Customer engagement behavior (EG)
Customer engagement, although a long-standing concept in business relationships, has gained significant attention from practitioners and scholars in recent years Over the past decade, it has become a vital area of research in marketing, with broad consensus that customer engagement can provide a sustainable competitive advantage for companies Engaged customers are believed to contribute to increased revenue and stronger relationships between firms and consumers As an extension of relationship marketing, customer engagement plays a crucial role in building lasting connections and achieving a competitive edge.
2.2.1 Conceptualization of Customer engagement behavior
Engagement has been a topic of discussion for over a century, encompassing diverse interpretations across various contexts In social settings, it includes civic, social, and community engagement, emphasizing active participation in societal issues In the business environment, engagement relates to contractual relationships and effective management practices that foster employee involvement In marketing, customer engagement refers to building a positive and meaningful relationship between a business and its customers, enhancing brand loyalty and trust.
Customer engagement is both a psychological state and an ongoing process that motivates customer loyalty and relationship development According to Bowden (2009), it functions as a psychological procedure that fosters loyalty, while Vargo and Lusch (2004) emphasize its role in developing and nurturing customer relationships based on Service-Dominant Logic Customer engagement occurs with specific intensity at particular times, but since it is a continuous process, its levels of complexity and engagement vary across different situations and moments (Schaufeli et al., 2002; Salanova et al., 2005; Brodie et al., 2011) Despite ongoing debates and varying definitions within marketing literature, this study synthesizes key conceptualizations of customer engagement, highlighting its dynamic nature and importance in fostering long-term customer relationships.
Table 2.3 Overview of some important definitions of EG
“The level of a person’s cognitive, emotional and behavioral presence in brand interactions with an online community.”
“The level of a customer’s motivational, brand-related and context dependent state of mind characterized by specific levels of cognitive, emotional and behavioral activity in brand interactions.”
“A consumer's positively valenced cognitive, emotional and behavioral brand related activity during, or related to, specific consumer/brand interactions.”
The customer’s behavioral manifestation toward the brand or firm, beyond purchase, resulting from motivational drivers
Customer engagement is a psychological state that reflects the customer's physical, cognitive, and emotional presence in their relationship with a service organization It is characterized by a sense of vigor, dedication, and absorption, highlighting the customer's active interaction and deep involvement with the brand This comprehensive engagement fosters stronger connections, enhances loyalty, and drives better overall customer experiences.
“It is holistic in nature and involves the customer’s cognitive, affective, emotional, social and physical responses to the entity, product and service.”
“Behavior through which customers make voluntary resource contributions that have a brand or film focus but go beyond what is fundamental to transactions”
“The intensity of an individual’s participation and connection with the organization’s offerings and activities initiated by either the customer or the organization."
Customer engagement is a complex, multidimensional concept in marketing literature, evolving from early unidimensional perspectives focused solely on customer behavior (Sprott et al., 2009; Van Doorn et al., 2010) to encompass affective, behavioral, and cognitive dimensions (Brodie et al., 2011, 2013; Chandler and Lusch, 2015; Mollen and Wilson, 2010; Patterson et al., 2006; Vivek et al., 2014) Recent models, such as King and Sparks (2014), conceptualize customer engagement as a second-order construct comprising five dimensions: identification, enthusiasm, attention, absorption, and interaction, reflecting a more abstract understanding of engagement This reflective second-order model aligns with existing literature on both employee and customer engagement, highlighting its comprehensive and multidimensional nature (Rich, Lepine, and Crawford, 2010; Patterson et al., 2006).
Figure 2.3 Conceptual model of Customer engagement
(Source: So, King and Sparks, 2014)
Customer engagement is a crucial strategic requirement in dynamic and interactive business environments, driving improved company performance through increased sales, competitive advantage, and profitability (Brodie et al., 2011; Vivek et al., 2012; Kumar et al., 2010) It has been recognized in marketing research as an important outcome measure reflecting the effectiveness of a firm's activities over time.
2.2.2 Antecedences of Customer engagement behavior
Previous research indicates that antecedents of customer engagement evolve over time (Van Doorn et al., 2010) Customer engagement is a psychological state resulting from a customer's interactive experience with an agent or focal object within specific service relationships (Brodie et al., 2011) The literature reveals multiple dimensions and diverse perspectives on the antecedents of customer engagement, primarily centered around the concept of customer experience Key antecedents and dimensions are summarized in Table 2.4, showing that most studies explore customer engagement through cognitive, emotional, and behavioral aspects Clause's research highlights that this conceptual framework examines cognition and emotion, which translate into four key customer behaviors: augmenting, co-developing, influencing, and mobilizing behaviors, emphasizing the multifaceted nature of customer engagement.
Table 2.4 Relevant literature on EG’s dimensions and antecedences
Customer satisfaction, Customer perceived value
Vivek, et al., (2014) - Conscious attention, Enthused participation, Social connection
Involvement Interactivity, Rapport, Trust, Brand attachment, Commitment, Brand performance perception
Identification, Enthusiasm, Attention, Absorption, Interaction
Hollebeek, (2011) Co-created value, Brand experience, Satisfaction, Trust, Commitment, Customer value, Brand loyalty, Customer equity, Firm reputation, Brand recognition, Financial outcomes
Cognitive, Emotional, Behavioral Customer brand engagement
Roy, et al., (2018) Service convenience,
Augmenting behavior, Co-developing behavior, Influencing behavior, Mobilizing behavior
Retail banking and mobile services
Co-developing behavior, Influencing behavior, Mobilizing behavior
Islam, et al., (2019) Service quality Cognitive, Emotional, Behavioral Hospitality service (hotels)
Ahn and Back, (2018) Brand experience Cognitive, Emotional, Behavioral Hospitality service (resorts)
Self-enhancement, Learning, Social integration, Company identification
Loyalty, Word-of- Mouth, Customer interaction, Co-creation
Brand experience Brand love Purchases engagement
Referrals engagement Influence value engagement Knowledge engagement
Barari, et al., (2020) Organic pathway (Perceived quality, Perceived value);
Promoted pathway (Functional initiative, Experiential initiative);
Relationship quality (Satisfaction, Trust, Commitment)
Tourism service, Moc Chau - Vietnam
Vigor, Dedication, Absorption Brand engagement, India
Vigor (Physical), Absorption (Cognitive), Dedication (Emotional)
Satisfaction, Trust/commitment, Identity, Consumption goals, Resources, Perceived costs/benefits
Valence, Form/modality, Scope, Nature of impact, Customer goals
Theoretical background
Managers and researchers utilize mental models, often referred to as logics, to navigate service settings (Gummesson, 2007; Gronroos, 2006) In the marketing field, there has been a significant shift from a goods-dominant logic to a service-dominant logic, reflecting an evolving understanding of value creation (Vargo & Lusch).
In 2016, the perspective shifted from viewing the company solely as a producer of value to recognizing that value is co-created collaboratively between the provider and customers (Heninonen et al., 2010) While Service-Dominant Logic emphasizes the importance of involving customers in the value creation process, both traditional and modern approaches tend to primarily consider the service from the provider’s perspective (Heninonen et al., 2010; Brown, 2007).
Figure 2.5 Characteristics of the offering and actor focus
Service dominant logic (SDL) emphasizes that providers are actively involved in and control the co-creation of value, focusing primarily on visible customer experiences while often neglecting the underlying mental models and logic of customers (Heinonen & Strandvik, 2015) Building on SDL, companies visualize the customer’s service process through methods like service blueprinting, which maps out the customer journey (Bitner et al., 2008) Additionally, research by Payne et al (2009) explores various opportunities for co-creating value with customers from the perspective of companies, highlighting the importance of understanding both visible and invisible aspects of customer interactions.
Figure 2.6 Customer-dominant logic of service and service management
Customer-dominant logic is a customer-focused approach that contrasts with provider-dominant logics, including goods-dominant and service-dominant logics (Heninen et al., 2010) It emphasizes understanding the systems of actors and spheres involved in customer experiences and how customers create value from a firm's offerings (Heinonen & Strandvik, 2015; Heinonen et al., 2013) This perspective posits that value is constructed through customers’ interpretations of their experiences and their unique ecosystems and life spheres where value is embedded (Heinonen et al., 2013; Heninen et al., 2010) Additionally, customer-dominant logic provides a broader understanding of value by addressing not only what the value is, but also how, when, and where it is formed (Heinonen et al., 2013; Heninen et al., 2010).
Table 2.5 Value creation nature of Customer-Dominant Logic
How • Value formation may also be a passive process
• Value formation is also a mental and emotional process
Where • Value is formed in multiple visible and invisible spaces
• The scope of value is the life of the customer
• Value formation takes place in the customer’s often uncontrollable life sphere
When • Value is longitudinal and has multiple dynamic time frames
What • Value is relative on multiple levels
• New methods and instruments are needed to study value formation
• Value is embedded in the life of the customer
• Value is collective and shared
• Even the customer can’t always orchestrate value formation
• The customer determines what value is
(Source: Voima, Heinonen, and Strandvik, 2010)
Research by Voima, Heinonen, and Strandvik (2010) introduces the concept of Customer Dominant Logic, emphasizing that value creation is a continuous, multifaceted process shaped by dynamic and multicontextual customer experiences In the context of beauty services, this process is longitudinal, as visits to a salon involve emotional and mental factors, memories, and collective stories that influence perceived value Value formation extends beyond a single interaction, encompassing the salon’s history and future expectations within collective social contexts, highlighting its complex and multi-subject nature Employees’ emotions, behaviors, and attitudes significantly impact the customer’s value experience, reflecting the intricate relationship between service providers and customers Consequently, understanding customer experience from the customer’s perspective—including both visible and invisible influences—is essential for businesses to create meaningful value and achieve positive outcomes.
Applying Customer dominant logic, the dissertation focus on when and how customer experience lead to customer engagement by understanding the customers’ ecosystem and their logics
Social identity theory explains that individuals develop a social identity beyond their personal self, helping to articulate their sense of self (Tajfel and Turner, 1985; Bhattacharya and Sen, 2003) People tend to define themselves by categorizing or associating with various groups such as gender, ethnicity, occupation, or sports teams, including short-term and transient groups (Kramer, 1991; Scott and Lane, 2000) Social identity reflects individuals’ self-perceptions based on cognitive connections between their personal identities and the identities of larger groups or organizations (Ashforth and Mael, 2000).
People’s social identity is not fixed; individuals actively choose and negotiate their identification with various groups (Bhattacharya and Sen, 2003) Consumers tend to identify with groups that they find attractive or that can enhance their social standing, fulfilling self-definitional needs such as helping them define their personal identity (Scott and Lane, 2000; Bhattacharya and Sen, 2003; Dutton, Dukerich, and Harquail, 1994) Additionally, the perception of how relevant others view the group significantly influences individual identification, with stronger bonds forming when referent others regard the group as esteemed and high-status (Bhattacharya and Sen, 2003) This dynamic underscores the importance of social influence and self-perception in group identification processes.
Consumers can identify with a group or organization even without formal membership, as highlighted by Bhattacharya and Sen (2003) and Scott and Lane (2000) This means that customers may feel connected to a company or its employees, even if they are not official members of those groups (Ahearne, Bhattacharya, and Gruen, 2005; Tuskej, Golob, and Podnar, 2013) Some researchers suggest that customer identification with a company often stems from their identification with the service employees, emphasizing the importance of employee-customer relationships in building brand loyalty.
Research by Bhattacharya and Sen (2003), Ahearne, Bhattacharya, and Gruen (2005), and others indicates that customer loyalty and brand advocacy can occur independently and play distinct roles in influencing company outcomes Studies such as those by Chan, Gong, Zhang, and Zhou (2017), and Yim, Tse, and Chan (2008), reveal that these constructs contribute differently to business success, emphasizing their unique impact on organizational performance.
Research shows that strong social identity with a group leads to positive outcomes, as individuals who identify closely with organizations are more likely to support them and evaluate them favorably (Ahearne, Bhattacharya, & Gruen, 2005; Kelley, Donnelly, & Skinner, 1990) Consumers with a strong connection to a company often engage in extra-role behaviors, such as positive word-of-mouth, recruiting new customers, and offering product improvement suggestions (Dutton, Dukerich, & Harquail, 1994; Scott & Lane, 2000) Importantly, studies indicate that this identification fosters increased customer engagement behavior, strengthening loyalty and active participation with the brand (He, Li, & Harris, 2012; Lam et al., 2010).
Research indicates that antecedents such as CSR practices, loyalty programs, and relationships with service employees play a crucial role in shaping customers' identification with companies and staff (Netemeyer et al., 2012; Ahearne et al., 2005; Martinez and del Bosque, 2013; Cho et al., 2015) These factors foster positive customer experiences, leading to favorable evaluations and stronger identification with the organization and its employees (Brashear-Alejandro et al., 2016; Yim et al., 2008; Stein and Ramaseshan, 2016) Ultimately, valued interactions with companies and service employees increase the likelihood of customer identification and loyalty (Mael and Ashforth, 1992; Hong and Yang, 2009).
During the service experience, positive customer interactions with the company and its employees foster a sense of identification and connection, which is essential for increasing customer engagement behavior This sense of identification leads customers to relate themselves to the company and its staff, ultimately benefiting the company through increased loyalty and engagement Based on social identity theory, this study highlights the mediating role of customer identification with the company and employees in linking customer experience to heightened customer engagement behavior in the beauty services sector.
Individuals with a high need for cognition are more motivated to engage in and enjoy effortful thinking about information, whereas those with a low need for cognition tend to rely on external sources like celebrities or experts for understanding Research by Cacioppo, Petty, and Kao (1984) defines the need for cognition as an individual's tendency to seek out and enjoy cognitive efforts Cacioppo et al (1996) found that people with high cognitive needs actively seek, absorb, and reflect on information to understand the world, while those with low needs generally depend on others for insights Their studies highlight that individuals differ in their willingness to engage in effortful cognitive activities, influencing how they acquire information and handle cognitively demanding tasks.
Feist (2006) emphasized that the need for cognition is closely linked to interest in science, as it fosters wonder, questioning, and curiosity about how the world functions Individuals with a high need for cognition tend to seek out more information, process content more carefully and analytically, and are influenced more by the quality of information rather than superficial details (Olson, Camp, and Fuller, 1984; Verplanken, Hazenberg, and Palenéwen, 1992; Cacioppo, Petty, and Morris, 1983; Xiao et al., 2021; Su et al., 2021) Petty and Brinol (2006) distinguished between emotional, intuitive, or impulsive systems versus cognitive, reflective, and rational systems, noting that high cognitive need individuals engage in slower, more deliberate learning Numerous studies support that need for cognition drives deeper media processing and analytical thinking across various contexts (Evans, Kirby, and Fabrigar, 2003; Yoon and Lee, 2021; Wu, Chen, and Chang, 2021; Sandra and Otto, 2018; Gallagher, 2012) Importantly, the effectiveness of marketing and business strategies is moderated by individuals’ need for cognition, influencing how messages are received and processed (Putrevu, Tan, and Lord, 2004; Martin et al., 2003; Pilli and Mazzon, 2016; Obiedat, 2013; Pan et al., 2020; Khan and Abid Usman, 2021).
Personal service establishments (PSEs), such as beauty salons offering manicures, pedicures, facials, waxing, and hairstyling, play a vital role in delivering personalized experiences to customers (Barn and Chen, 2012) Beauty services are a form of personal service, where the interaction between customers and front-line employees is crucial for customer satisfaction (Ganesh, Arnold, and Reynolds, 2000; Beatson, Coote, and Rudd, 2006) Customer interactions vary based on their cognitive needs, influencing behaviors before, during, and after the service experience The Need for Cognition theory serves as a valuable framework in understanding these interaction patterns and guiding improvements in the quality of beauty services.
Proposal framework
Based on an in-depth review of the literature and theoretical frameworks related to customer experience and customer engagement behavior, this article proposes a research framework grounded in three key theories: Customer Dominant Logic, Social Identity Theory, and Need for Cognition First, it establishes that customer experience serves as the foundation for developing customer engagement behavior, highlighting its often-overlooked positive contribution to company profits Second, Customer Dominant Logic emphasizes the critical roles of both customers and businesses in co-creating value through the entire service journey—pre-, during-, and post-service experience—where customers actively participate in value formation Third, Social Identity Theory explains that customers with a strong social identity perceive themselves as part of the organization, actively contributing to value creation Fourth, the Need for Cognition Theory acknowledges that individuals' cognitive motivations influence their behaviors, with high cognitive motivation leading to quick, decisive actions, and low cognitive motivation resulting in more cautious and hesitant decision-making.
This study, based on customer-dominant logic, social identity theory, and need for cognition theory, explores how customer experience fosters identification with companies and service staff, leading to increased customer engagement in the beauty service industry It also examines how this relationship is moderated by customers' epistemic motivation The research model, illustrated in Figure 2.7, highlights the interconnected roles of these variables In addition, the upcoming section will detail the main variables and develop hypotheses to support this framework.
Operationalization of the selected variables
Customer experience occurs with every interaction customers have across multiple channels and touchpoints, both before and after service engagement (Stein and Ramaseshan, 2016; Klaus and Maklan, 2012) It results from customers' evaluations of all their cumulative contacts with the service, shaping their overall perception (Stein and Ramaseshan, 2016; Pimpakorn and Patterson, 2010) Additionally, customer experience is a multi-dimensional construct that includes spiritual, sensorial, physical, rational, and emotional assessments of each service touchpoint (Gentile et al., 2007; Pekovic and Rolland, 2020; Kuppelweiser and Klaus, 2020).
Customer experience dimensions vary across different contexts, with factors such as quality of materials, signage, and personal artifacts being crucial for luxury hotel guests, whereas these aspects are less important for budget hotels (Bustamante and Rubio, 2017; Happ et al., 2020; De Keyser et al., 2020).
Customer epistemic motivation influences how customers perceive and evaluate their experiences (Walls et al., 2011; Ren et al., 2016) The dimensions of customer experience vary across different cultures within the same industry; for example, Indian customers prioritize social interaction and convenience when assessing retail store experiences (Shobeiri, Mazaheri, and Laroche, 2018; Srivastava and Kaul, 2014) Additionally, customer experience is perceived differently in online versus offline contexts, as key factors important in one setting may not be relevant in the other (Rose et al., 2012; Bustamante, 2017).
Measuring customer experience remains challenging because it often involves assessing individual product or service dimensions, which leads to a lack of a unified measurement across studies Customer experience is inherently a result of interactions among customers, services, and contextual factors, making it difficult to evaluate solely based on a company's offerings While certain aspects of customer experience can be influenced by companies, it also includes uncontrollable elements, reflecting its complex and multifaceted nature.
Klaus and Maklan (2012) developed a comprehensive measure for customer experience, identifying four key dimensions: product experience, outcome focus, moments-of-truth, and peace-of-mind Product experience emphasizes customers’ perception of having choices and the ability to compare offerings, even from the same provider, enhancing perceived value Outcome focus highlights the importance of goal-oriented experiences, where services enable customers to achieve their specific objectives These dimensions collectively shape the overall perception of customer experience, which is crucial for delivering high customer satisfaction and loyalty Incorporating these insights can improve marketing strategies and enhance customer engagement.
Understanding customers' personal elements, such as social influence and shopping purpose, is essential for designing services that create the desired customer experiences, even though these factors may seem uncontrollable By analyzing these personal aspects, companies can tailor their offerings to better meet customer needs and enhance satisfaction (Verhoef et al., 2009; Teixeira et al.,).
Existing research on customer experience primarily explores its antecedents and consequences, emphasizing factors that influence customer perceptions and behaviors (Gounaris et al., 2007; Chen, 2015; Berry et al., 2002; Rose et al., 2012) Many studies focus on the antecedents from the company’s perspective, often highlighting only visible aspects of the customer experience (Teixeira et al., 2012; Gentile et al., 2007; Rose et al., 2012) For instance, Rose et al (2012) investigate how service attributes affect cognitive and affective evaluations, which in turn influence purchase intentions.
Customer experience is a multi-dimensional concept encompassing spiritual, sensorial, physical, rational, and emotional evaluations of service touchpoints (Gentile et al., 2007; Klaus and Maklan, 2012) It results from customers' assessments of their cumulative interactions across various contact points with the service (Rose et al., 2012) Customers experience services every time they engage across multiple channels and moments, emphasizing the ongoing nature of their interactions (Stein and Ramaseshan, 2016) As a product of shared interactions, customer experience cannot be solely controlled by companies but must be co-created with customers, making it partly controllable and partly uncontrollable (Verhoef et al., 2009; Teixeira et al., 2012) Understanding personal customer elements, such as social influences and shopping purposes, can help companies tailor services that foster desired customer experiences despite elements beyond their direct control.
The customer experience quality scale, developed by Klaus and Maklan (2012), measures both cognitive and emotional value from the customer's perspective by capturing the overall value-in-use, including emotional responses and functionality of offerings Despite its potential, this scale has not been extensively tested empirically, prompting this study to examine its applicability in a Vietnamese beauty salon context (Lemon and Verhoef, 2016) The research aims to assess whether the scale effectively measures customer experience with salon services in Vietnam, utilizing a qualitative approach to refine the measurement items before exploring their relationship with other constructs Additionally, the study evaluates the proposed research framework (Figure 2.7) to validate the scale’s relevance in this setting.
Research indicates that when customers identify with a company and its employees, they are more likely to engage in behaviors that support the brand beyond simple transactions, known as customer engagement behavior (Kang et al., 2015; Jaakola and Alexander, 2014) Kumar and Pansari (2016) found that higher customer engagement positively impacts a company's performance Customer engagement is defined as a psychological process where customers are fully absorbed by a specific context, involving cognitive, emotional, and behavioral activities during interactions (Thakur, 2016; Bowden, 2009) In essence, customer engagement behavior reflects actions driven by customers' initiative and motivation, extending beyond their traditional role in service delivery to foster a deeper connection with the company (Roy et al., 2018; Cheung et al., 2020).
Customer engagement behaviors include positive word-of-mouth, helping the company and other customers, suggesting product improvements, recruiting new customers, and proactively communicating potential issues (Jaakola & Alexander, 2014; Pansari & Kumar, 2016) These actions involve customers contributing resources that enhance the overall value of the company's offerings.
Customer engagement behavior enables companies to build deeper relationships with their customers, transforming them from one-time transactions into loyal, long-term clients This engagement serves as a vital source of competitive advantage, as engaged customers are more likely to return and recommend the brand to others According to Roy et al (2018), fostering customer engagement creates a loyal customer base that goes beyond transactional interactions, ultimately strengthening the company's market position.
Research indicates that several factors influence customer engagement with services, with contextual factors playing a significant role (Patterson et al., 2006; Fernandes & Esteves, 2006) Customers are more inclined and motivated to interact with services that are high-involvement, interaction-based, have low availability, and entail high switching costs (Fernandes & Esteves, 2006; Bolton & Saxena-Iyer) Understanding these dynamics is crucial for businesses aiming to enhance customer engagement and loyalty.
Customer identification with a brand is a critical factor that significantly enhances customer engagement, as supported by multiple studies (Coelho et al., 2018; Ahearne et al., 2005) Research indicates that when customers strongly identify with a brand, it fosters deeper engagement and loyalty, ultimately strengthening the customer-brand relationship (Stephenson and Yerger, 2014; Coelho et al., 2018).
Customer experience is shaped by the interactions between customers, the company, and service providers (Stein & Ramaseshan, 2016; Tynan et al., 2014) When customers perceive their interactions as positive, they are more likely to engage with the service, leading to beneficial outcomes such as increased customer engagement behavior (Yi & Gong, 2009; Yim et al., 2008; Coelho et al., 2018).