Quantitative Methods

Abstract

In the ever changing business climate, the service sector has become a major focus of attention. One key aspect of this competitive environment is the effort of many businesses to differentiate them by creating unique customer experiences that accompany their products and services. The challenge to creating memorable consumer experiences is the proper identification of specific characteristics that influence experiences and gaining better understanding of how these impact consumers perceived values. This study is concerned with the undertaking of extensive research on the subject of social, environmental and interpersonal influences on the customer experiences.

Conceptual Framework

Globalization of product markets has triggered concern about product quality, standards and preference. Around the world consumers are becoming more aware of the quality attributes of different commodities found in the market and are choosing products that closely match their tastes and preferences Martin, C. L. Developed countries implement high safety and quality standards to alleviate consumer health and environmental concerns often, at the expense of low quality products from importing countries. This poses new challenges for producers in developing countries as they have to adapt to these emerging standards to ensure high food quality standards, especially for the export market, but also to meet the preferences of domestic consumers (Bagozzi, 2002).

The changing experiences and thus, the shifting behaviors of consumers are intended to identify consumer variables, explain relationships between variables and specify cause and affect outcomes from variable interactions. Consumer behavior theory states that consumers evaluate a product based on intrinsic and extrinsic attributes. Intrinsic attributes (characteristics integrated in the physical product) include factors such as packaging, quality and hygiene etc.

Consumers often express their preferences for product quality by paying a premium for the product with the desired characteristics. These premiums give producers an incentive to improve product quality and quantity consequently enhancing the welfare of the consumer and the producer. Consumers face tradeoffs in their purchasing decisions since income is limiting and choices are numerous. When making choices, consumers must combine budget constraints and preferences (Balnaves, 2001). Budget constraints are determined by both the income of the consumer and the relative prices of products. On the other hand products are differentiated based on the characteristics they possess. It is assumed that once consumers recognize their peculiar preferences they are prepared to pay more for variants that are better suited to their tastes. Better market information on consumer preferences will assist rice producers in making informed decisions to produce appropriate rice qualities and maximize their returns (Bateson, 1986).

The theoretical framework of the variables affecting the customers' experiences and thus, behavior is given below in the form of a figure:



Independent variables Dependent variable

According to the conceptual framework that will guide the study, the independent variables are social environment and interpersonal influences. Customer experience is the dependent variable which depends on the two. Situation and Customer Moderators are intervening variables which moderate the effect of the independent variables (social environment and interpersonal influences) on the dependent variable (customer experience).

Customer Delighful

The customer experience is the multidimensional ...