”THE EXPERIENCE IS THE BRAND”: A qualitative investigation of how e-commerce managers in the retail industry create brand experience, through the tools and features of e-servicescape

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Department of Business Administration Master’s Program in Marketing

”THE EXPERIENCE IS THE BRAND”

A qualitative investigation of how e-commerce managers in the

retail industry create brand experience, through the tools and features of e-servicescape

Axel Eklund & Daniel Söreng

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Abstract

“The experience is the brand” - is a quote which accurately conveys the current transition in today's society towards the so-called experience economy. The current business environment is becoming increasingly saturated with more brands - which in turn are growing more similar and compete on more or less the same terms. In order to stand out from the competition, firms must adapt contemporary and efficient branding strategies. Moreover, firms must also account for the implications of the experience economy, which has seen customers gravitating towards holistic experiences, instead of commodities. The concept of brand experience has become one of the most contemporary and beneficial measures for firms to stand out from the competition, while simultaneously adhering to the progression of the experience economy. Traditionally, brand experience has been facilitated through the physical servicescape and its associated tools and features - in physical stores. However, during the last years, e-commerce has seen an immense growth, which together with the implications of Covid-19 has seen customers deviate from shopping in traditional stores. This pertains to the current situation where e-commerce managers now are faced with the challenge and situation of finding accurate tools and features for facilitating brand experience through the e-servicescape. Moreover, the role of brand experience in the digital customer journey must also be regarded and analyzed by e-commerce managers as well, since it appears more complex online compared to in physical stores.

Previous research has stressed importance and need for future research to investigate how to practically work with brand experience in a digital setting. Moreover, many scholars have also expressed the need for researchers to provide more of a standardized conceptualization as to what the e-servicescape constitutes, and which associated tools and features exist for e.g. e- commerce managers to utilize. The importance of studying the brand’s influence on the entire digital customer journey, as opposed to only the purchase situation, has also been readily established. Previous research within the field of brand experience has investigated how physical stores can be utilized for facilitating brand experience, as well as the physical customer journey. However, there is no previous research with the ambition to investigate how brand experience is created in an online setting. Following the implications of the experience economy and the emergence of e-commerce, there is an evident need for studies contributing to this research gap. Thus, the purpose of this study is to provide a practically and theoretically grounded framework as to how e-commerce managers create brand experience through the tools and features of the e-servicescape. As well as providing insights as to when during the digital customer journey these brand experiences are of importance.

Our study answers the following research question; “How do e-commerce managers within the retail industry create brand experiences, through the tools and features of the e-servicescape - and when during the different stages of the digital customer journey are these brand experiences of importance?”. In order for us to answer the aforementioned research question and purpose, we have undertaken a qualitative study, where we have conducted four in-depth interviews with e-commerce managers or professionals working closely with them, from the retail industry. Our findings in this study provide instrumental, practically and theoretically grounded answers and implications as to how e-commerce managers create the brand experience through the tools and features of the e-servicescape. As well as providing clear answers as to when these brand experiences are of importance in the digital customer journey.

Throughout the study, a theoretically grounded conceptual framework has been utilized and guided our research. The conceptual model has then been revised and calibrated to fit our findings from both a theoretical and practical point of view.

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Acknowledgements

First of all, we would like to thank our supervisor Vladimir Vanyushyn with his consistent support and guidance throughout the process of conducting this study. His feedback, great insights and thoughts have been very appreciated and useful during our time together.

Secondly, we would also like to thank all of the interview participants for making this study possible, through the contribution of their knowledge and time.

Umeå

May 26, 2021

School of Business, Economics, and Statistics Umeå University

_________________________ _________________________

Axel Eklund Daniel Söreng

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Tables and Figures

Figure 1: Conceptual model ... 32

Figure 2: Revised conceptual model ... 73

Table 1: Summarized findings ... 77

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1. Introduction

In this first chapter, we will first of all provide a thorough understanding of our current problem background and the origins to our study. Based on this problem background, we will present relevant research gaps based on previous existing research. These implications will then constitute the foundation for our formulated research question, and the developed purpose of this study.

1.1 Choice of subject

During our education at Umeå University, we have experienced several different courses in the field of Business administration. During the last two years, we have both studied at the master’s program, with marketing as our chosen specialization. Marketing has during our years at the university always been a common interest and passion for us. Thus, the choice of our master’s degree in marketing was rather clear cut and organic. During the spring of 2020, we both wrote our respective degree projects, however with different thesis partners. One of us wrote about branding in terms of specifically brand equity, while the other one had an e-commerce focus in his study. With this master’s thesis we wanted to consolidate both of our earlier research areas, since we immediately felt that there is an interesting and exciting aspect to research the role of the brand, in the ever-growing field of e-commerce.

Since our education has an additional focus on service management, we have experienced many courses manifesting the importance of the physical servicescape and the customer journey in regard to the process of differentiation and brand building. Since Covid-19 and e-commerce both provide implications which pertain to the fact that customers will deviate from stores and physical servicescapes to a greater extent - we felt that this was an area that evoked a great and contemporary research field. Moreover, we both are very entrenched and curious about digital marketing, and it constitutes a field of employment, where we both could see ourselves working in the future. From our deep interest in the field, we have both come in contact with the term experience economy and recognized how the topic of brand experience and digital marketing has become discussed more frequently on different types of platforms such as blogs and podcasts. Brand experience quickly became a concept which we felt was optimal to include in our study, since it has a clear background in the traditional marketing discipline - while also has a clear role in the future of digital marketing.

By consolidating e-commerce and brand building, our goal with this study is to provide us with a nuanced understanding as to how brands can be used to differentiate firms in an e-commerce setting. We find it incredibly stimulating and exciting for us to combine our extensive knowledge from our previous degree projects, which we believe in extension will enable us to learn from each other and promote an intellectually stimulating experience while conducting this study. Moreover, since we both see ourselves working in the field of digital marketing, we naturally also regard this as a great opportunity for us to emerge ourselves into a field, from which we can derive new insights and findings for ourselves, and our future employers. Thus, we approach this study with a mindset where

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we aim to conduct the best possible study academically, while simultaneously aim to provide findings and obtain essential knowledge, which will make us attractive on the work-market for future employers.

1.2 Problem background

Attracting customers will always constitute a crucial, but challenging function for brands (Amine, 1998, p. 305). The last century has seen customers becoming more exposed to brands than ever - and reaching through the noise of advertising has become increasingly difficult (Amine, 1998, p. 307) Following this trend, Wang et al. (2007, p. 1819) argue that markets overall are becoming increasingly saturated, since both domestic and international brands are competing on similar terms, thus losing competitive advantage against each other. Even though differentiation is an obvious challenge at hand for firms, Amine (1998, p. 306) argues that companies must pursue brand building efforts and strategies. At the center of profit-seeking companies, attracting customers and retaining them is of essence, which require well-thought-out branding initiatives (Amine, 1998, p.

306), since companies are becoming increasingly more similar (Amine, 1998, p. 306 ; Wang et al., 2007, p. 1819). Argonova (n.d.) identifies that focus must be directed at developing brands which are differentiated from the competition, and Aaker (1991, p. 7) further adds to this discussion by stating that the process of differentiating brands constitutes a great opportunity to create overall value, to both customers and the company itself. In order to not lose market presence and subsequently market shares, Dahlen and Lange (2009, p. 22) highlight the importance of developing branding strategies to remain competitive.

The importance of establishing and managing brand strategies is further solidified by the Swedish patent- and registreringsverket (2019, n.d.), who accentuates the fact that the brand constitutes one of the most potent and efficient tools in order to remain present in customers' minds. Naturally, developing the brand cannot be an isolated process from the customers. Solomon et al. (2010, p. 6) argue that it is essential to understand customers in order to manage a brand's communication and marketing strategies accordingly.

Today's marketplace has not only changed in terms of increasing competition - but also in terms of customer preferences etc., which has demanded new and more efficient branding strategies from that point of view as well (Amine, 1998, p. 306 ; Dahlen &

Lange, 2009, p. 22 ; Wang et al., 2007, p. 1819). Joy and Sherry (2003, p. 259) describe how the market has undergone a significant change in regard to how we entice and attract customers, through the noise of advertising. Previously, Joy and Sherry (2003, p. 260) mean that we transitioned from enticing and attracting customers, through more or less purely selling and promoting products. While we now instead entice customers through creating and selling holistic brand experiences (Joy & Sherry, 2003, p. 278). Pine and Gilmore (1999, p. 13) further substantiate this argument expressing how the order of precedence has gone from firstly commodities, to services and now finally to experiences, which has seen the experience economy boom.

1.2.1 The shift towards the experience economy

Following the ongoing evolution from commodities and services - creating experiences through the brand has now become the core of many marketing activities (Pine &

Gilmore, 1999, p. 185). Brakus et al. (2009, p. 52) explain that a brand experience is a construct and combination of the customer's feelings, sensations, cognitions and behavioral responses - which are evoked and created when the customer is interacting

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with a brand. Pine and Gilmore (1999, p. 31) describe how the so-called experience economy has emerged and expanded throughout the last two decades. Furthermore, Schmitt (1999, p. 67) recognized how the experience economy as a concept has put significance on the fact that companies must deepen their understanding of how they can customize their desired brand experience to evoke emotions and trigger senses for their customers. Even though customers have an array of brands and products to choose from, Pralahad and Ramaswamy (2004, p. 6) argue that customers are manifesting increased dissatisfaction. An explanation to this trend can be deduced from Reinmann et al. (2010, p. 431) who explain that customers' basic needs have started to become content.

Following this trend, Ajzen (2018, p. 97) states that it is of great necessity to understand what affects the experience of the customer, and thus enable value creation. According to Salomon et al. (2010, p. 60), firms need to change the view on consumer behavior, and focus on the experience and other factors, instead of solely the time when the customer purchases a product or service.

Bettman et al. (2008, p. 173) further this discussion, where they explain how the shift of attention and focus must deviate from the isolated event of the actual purchase situation.

Instead, Bettman et al. (2008, p. 173) mean that marketers must allocate time to monitor and understand the entire customer journey, since this will allow market and brand strategists to create a brand experience which will enhance the overall impression and satisfaction for customers throughout the entire customer journey. Pralahad and Ramaswamy (2000, p. 13) argue that when creating experiences for the customers, the brand must always be considered and never overlooked. The brand must be emphasized throughout the entire experience - where Pralahad and Ramaswamy (2000, p. 13) go to the extent to state that “the experience is the brand”. Following the transition and development of focus towards a more experience-centric approach, marketers and brand strategists must find new effective tools and features to design brand experiences (Gentile et al., 2007, p. 395). Briefly assessing what actually constitutes brand experience - the four dimensions of; affective brand experience, behavioral brand experience, intellectual brand experience and sensory brand experience, provided by Brakus et al., (2009), are the most widely adopted and contemporary dimensions. These are however still relatively unexplored in previous research, but still remain the most widely adopted and quoted definition.

Moreover, Gentile et al. (2007, p. 395) state that great and carefully designed brand experiences will constitute a sustainable competitive advantage, and additionally be a source of differentiation for the firm's product or service offering. Facilitating and creating positive attitudes and experiences towards a brand is essential for delivering value to customers and subsequently retaining customers - and thus enhancing brand loyalty, as argued by many scholars (Aaker, 1991, p. 7 ; Dick & Basu, 1994, p. 99-113).

Brand loyalty is one essential cornerstone of brand equity alongside brand awareness, brand associations and perceived quality (Aaker, 1991, p. 15-16). Aaker (1991, p. 15-16) explains the importance of having high brand equity, since it provides value for the entire brand. Beig and Nika (2019, p. 1) further add to this argument by expressing that brand equity is a prime strategic asset for organizations of today's market environment.

Furthermore, Beig and Nika (2019, p. 1) find the concept of brand experience as one of the main tools to build brand equity, which further emphasizes the crucial role for modern organizations, to facilitate holistic brand experiences for their customers. Thus, it is perhaps of no shock that there is an emerging and potent stream of marketing research

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which is now focusing on the concept of creating and adding value to the customers through brand experiences (Iglesias et al., 2011, p. 571).

1.2.2 The emergence of e-commerce

The brand experience is traditionally facilitated and catalyzed through the help of the physical environment. In line with Brakus et al. (2009, p. 52) explanation of the importance of creating brand-related stimulus which should include sensations, feelings, cognitions and behavioral responses - the physical environment and servicescape is manifested to be a proven tool and measure (Bitner, 1992, p. 57-71; Grönroos, 2008, p.

355). The physical servicescape can be utilized to have a clear impact on customers through cues and triggers such as lightning, music and floor design. Together they are proven to evoke emotional and behavioral responses among customers (Bitner, 1992, p.

57-71 ; Grönroos, 2008, p, 355). Thus, clearly influencing the overall brand experience and satisfaction of the customer. However, not only has there been a switch in terms of transitioning towards experience-centric marketing, the world is in many ways continuously becoming more digitized and globalized (Hultén et al., 2009, p. 2). Online retailing (e-commerce), according to PostNord (2021, p. 8) increased from 11 to 14 percent of the total amount of trade in Sweden by 2020. Even though e-commerce has been an established and well-developed marketplace for periods of time - during the strange year of 2020, it expanded even further with three percentage points. The Covid- 19 pandemic has for several reasons had a big impact on the growth of e-commerce during the year of 2020 (PostNord, 2021, p. 11).

According to the findings by Bhatti et al. (2020, p. 1451), Covid-19 led to a substantial impact on e-commerce, and the subsequent growth. The virus has forced customers to take their shopping habits to the digital sphere (Bhatti et al., 2020, p. 1451). In Sweden, 94% of the population is using the internet - and in the year of 2019, 8,24 billion dollars was spent by swedes on e-commerce (Ecommerce News, 2020). Following the implications of the Covid-19 pandemic, every other swede has purchased some form of new products during 2020 (PostNord, 2021, p. 15). With the increase of e-commerce, there is a potent downside for the more classic, physical stores consisting of brick and mortar. Childs et al. (2020, p. 262) present the term “retail apocalypse” which they refer to as the result of the dramatic changes for the revolutionary increments of online retail which will lead to brick and mortar retailers being forced to close due to loss of income.

In many ways, it appears that online retailing and e-commerce is forcing physical stores to close their businesses (Childs et al., 2020, p. 262). This also seems to be the case in Sweden. By the year of 2025, one fourth of the physical stores will most likely have to shut down (Lagerström, 2017). Customers are choosing e-commerce over physical stores for different reasons. For example, the comfort of online retail, the offers the stores communicate or simply the visual and the entertainment aspect (Ström, 2015, p. 151).

1.2.3 The servicescape in a digital world

Following the immense emergence of e-commerce and the Covid-19 (PostNord, 2021, p.

11-15), alongside the forthcoming “retail apocalypse”, creating brand experience will see another change. The physical servicescape has for long constituted the main measure for creating experiences related to the brand and its value proposition (Bitner, 1992, p. 57-71

; Grönroos, 2008, p, 355), but due to e-commerce - marketers and brand strategist must now understand how brand experiences can be created in the digital context. This transition has however not gone totally unnoticed in the world of marketing. According

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to Lee and Jeong (2012, p. 47), there are many companies paying attention to how they can develop their websites and online formats to enhance the customers satisfaction, and their brand experience. Lee and Jeong (2012, p. 47) further argue that websites and online formats are important assets in terms of influencing the customer's overall experience, and of the brand. These online settings and spaces are often described as e-servicescapes, since they are used to evoke the same experiences, as when a customer visits a store, or in other terms a physical servicescape (Koering, 2003, p. 152). According to Hopkins et al. (2009, p. 24), websites are often considered as one of the main platforms to constitute e-servicescapes. Mummalaneni (2005, p. 526) takes a more general approach and considers the e-servicescape as a virtual storefront, which is designed through tools such as web page design. Mummalaneni (2005, p. 526) continues to express the similarity in functions to the physical servicescape, and describe how e-servicescapes design, just like brick-and-mortar stores, put emphasis on layout, displays, signage etc. However, naturally - there are many differences. The digital environment presents a setting where the customer becomes more of a co-creator in terms of the value delivered (Ballantyne &

Nilsson, 2017, p. 232). In order for organizations to create a servicescape which stimulates customers' needs and provide value, Lee (2011, p. 63) describes how certain considerations must be made.

Lee (2011, p 63) argues that virtual/physical servicescapes which facilitate value for the customers - stimulate needs of comfort, convenience, privacy, support and safety. Thus, the firm providing the service must understand how they design different features of the now contemporary and modern e-servicescape, to impact these different aspects of satisfaction (Lee, 2011, p. 63). Moreover, another significant discrepancy between the physical and e-servicescape is the ability to work with sensory experiences. In terms of the e-servicescape, Petit et al. (2019, p. 1) explain how the online retail environment is more or less limited to visual elements, with the addition of some auditory elements as well. Vilnai-Yavets and Rafaeli (2006, p. 255) argue that the e-servicescape affects the customers primarily through its features and atmospherics. When the customers view a company's webpage during general browsing, or with specific purchasing intentions, they form a representation of the company and the brand (Vilnai-Yavets & Rafaeli, 2006, p.

256). The many different features of an e-servicescape do carry numerous distinct functions. Vilnai-Yavets and Rafaeli (2006, p. 255) continue in their study on e- servicescape to state that professionalism and aesthetics difference provide different values. Vilnai-Yavets and Rafaeli (2006, p. 255) find that the professionalism of the e- servicescape influences satisfaction, while aesthetics affects customer pleasantness and attitude towards the brand.

1.2.4 The digital customer journey

While the servicescape has started to move into the digital sphere, so has also the customer journey as it has adapted to the world becoming more digitized. The consumer path -to- purchase is less hierarchical, shorter in length and generally more complex in a digital setting (Batra & Keller, 2016, p. 122). Lemon and Verhoef (2016, p. 69) argue for the importance of understanding the customer journey for firms since customers interact with them in different touch points in multiple channels. It is therefore crucial for firms to interpret and understand digital customer journeys, to further investigate how to create brand experience for their customers in different stages of their customer journey. In the 1960s initial theories regarding a more classical view of customer journey made their entrance into the research field of marketing, stating that the journey of a customer started after a need-recognition for a purchase. To then proceed to the evaluation process of the

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purchased product (Lemon & Verhoef, 2016, p. 71). However, as stated earlier by Batra and Keller (2016, p. 122), the digital customer journey is more complex in today's digital setting. The customer journey involves consumer behavior more than just the actual purchase of a service or a product itself, as well as consists of understanding why, when, how, where, how often etc. a customer will purchase, use and discard a product (Hoyer &

MacInnis, 1997, p. 154). The customer journey has, to say the least, evolved during the years and is now more complex with more stages and factors affecting the customer during his or her journey from start to end. Batra and Keller (2016, p. 139) finalize in their suggestion for future research that the customers decision journey, and how customer’s brand-related needs relate to the different stages of the customer journey, needs to be a more research area since they vary during the process, which is further substantiated by Bettman et al. (2008, p. 173), as previously discussed in this problem background.

1.3 Research gap

Based on our presented problem background, we are able to determine a number of important implications. First of all, we have been able to manifest the crucial importance of having a strong brand in today's business environment (Amine, 1998, p. 306 ; Dahlen

& Lange, 2009, p. 22 ; Wang et al., 2007, p. 1819). Furthermore, we know that we are experiencing the emergence of the experience economy, where building brand experiences has become an essential tool and measure to entice and retain customers (Ajzen, 2018, p. 97 ; Brakus et al., 2009, p. 52 ; Pine & Gilmore, 1999, p. 31, p. 185).

Previously, the physical servicescape has constituted a potent and efficient mechanism and function to create brand experiences, through different cues and stimulus (Brakus et al., 2009, p. 52). However, due to the implications of Covid-19 and the continuous growth and expansion of e-commerce, physical stores are becoming obsolete and face the so- called retail apocalypse (Childs et al., 2020, p. 262). This pertains to a situation where marketers must now utilize the digital setting to build brand experiences in order to remain competitive (Lee & Jeong, 2012, p. 47 ; Pine & Gilmore, 1999, p. 185). According to many scholars (Koering, 2003, p. 152 ; Lee, 2011, p 63 ; Mummalaneni, 2005, p. 526), the so-called e-servicescape in many ways provides the same functions which a physical servicescape does, meaning that marketers and e-commerce managers must carefully understand how they can utilize the e-servicescape and its associated tools and features - to facilitate brand experiences for the firm's customers. Moreover, another part of the brand experience, which is of importance for the firm's customers, is the customer journey. The aforementioned implications of the digital world we currently live in, also render a different customer journey. Meaning that e-commerce managers must also understand when and where brand experience will influence the new digitally adapted customer journey. In summary, e-commerce managers must understand how the different tools and features of the e-servicescape can be utilized to create brand experiences for customers - as well as when and where during the digital customer journey.

However, even though there is an obvious need to conduct research within this area, based on the implications derived from the problem background - there is a potent and obvious lack of established research that specifically focuses on investigating the relationship as to how the e-servicescape and its associated tools and features can be utilized to create brand experiences. Especially in conjunction with the unique implications of Covid-19 pandemic and the continuous expansion of e-commerce during the year of 2020, with a clear continuation into 2021 and the foreseeable future. We argue for an existing research

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gap in the chosen field of how e-commerce managers practically create brand experience through the tools and features of the e-servicescape. Alongside determining when and where during the digitally adopted customer journey. Moreover, in this paper we will use the four dimensions of Brakus et al. (2009) to conceptualize brand experience, which have been readily established and accepted to be an accurate way of describing relevant constituents of brand experience. However, according to our literature review, there is no previous research aimed at actually understanding how to facilitate and create each dimension of brand experience. The lack of practical suggestions as to how e-commerce managers can work with each dimension, with the help of different tools and features, is another major research gap which we see great importance in filling and contributing to.

Furthermore, Brakus et al. (2009, p. 66) explicitly state that there is a need for future research on how the different brand experience dimensions elicit stimuli that are brand related, as well as arguing for how to actually create and facilitate brand experience for customers online since it is yet not standardized, further substantiating our identified research gap.

Furthermore, Callaghan (2019) also implies that future research is needed in the field of usability of the e-servicescape and how customers and their satisfaction is influenced through the different facets of the e-servicescape. Callaghan (2019) further points out that the e-servicescape is not readily explored and defined as a concept. This also motivates why our study will fill our identified research gap - since our goal is to provide qualitative data as of how brand experience is created through the tools features of the e-servicescape - as well as when and where during the digital customer journey. We also aim to deduce on which platforms and facets of e-servicescape these suggested tools and features are most appropriate to implement. This will possibly not provide a standardized approach, but instead a more cohesive and practical framework for e-commerce managers and marketers to interpret and analyze. Previous research also shows that brands continue to fail at giving their customers positive experiences, even though customers are of key importance (Schmitt, 2003, p. 4). Depending on the different needs of customers, there is a lack of research which investigates different components of the e-servicescape (Lee &

Jeong, 2012, p. 56). The result of Beig and Nika (2019, p. 15), showed that brand experience has a positive influence on brand equity, however, the lack of research regarding tools and features of the e-servicescape, means that it still remains as an unexplored area within the existing research. Moreover, Beig and Nika (2019, p. 2) state that there is limited studies on the area of the online retail industry in relation to brand experience, Earlier research has focused on the more “classic”, physical servicescape consisting of stores on bricks and mortar and how physical services can be designed to create brand experiences, this is known as the term the experiencescape (Tresidder &

Deakin, 2019, p . 194). According to our literature review, there is no evidence of how

“experiencescape” in a digital setting is conducted previously, and overall none regarding how e-commerce managers can actually create brand experiences through the e- servicescape

There are some earlier studies which point out how the e-servicescape and how the digital surface can be designed to create purchase intentions specifically (Harris & Goode, 2010;

Hopkins et al., 2009 ; Teng et al., 2018). However, in accordance with the argumentation of Bettman et al. (2008, p. 173), it is not suitable in today's business environment to analyze the purchase situation as an isolated event. Instead, we argue that it is of essence to analyze how the brand experience is permeating the entire customer journey, and not only the purchase situation - which we argue to be regarded as a very obsolete approach.

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In order to have a more contemporary approach in this study, we also include the customer journey since it adds another dimension to our identified research gap since we want to see where in the digital customer journey for a customer in the e-servicescape, it is of importance to create brand experience. Batra and Keller (2016, p. 139) state that there is a need for future research to recognize that brand-related needs for customers vary depending on the different stages in the customer journey. Existing research within e- servicescape also suggests that there is a need to look further into the experience of customers on the digital platform to contribute to current findings around the digital customer journey (Tankovic & Benazic, 2018, p. 1140). All of these presented factors together motivate why our study is needed and will provide important knowledge and theoretical contributions for the chosen field of science. Moreover, another source emphasizing the importance of the nature of our study is the marketing science institute.

The marketing science institute (2020) has recognized six different research areas which are prioritized topics, which has emerged from the Covid-19 pandemic alongside the changing economy. Among these topics, delivering customer value is one of them, where focus is understanding how to strategically promote value to customers on all touch points during the omnichannel customer journey (Marketing science institute, 2020). Moreover, the marketing science institute also suggests the need for research regarding macro trends influencing customer decision making. We argue that our study contributes to this suggested and prioritized research topic in many ways, due to the nature of our research, our designated purpose and research question which we will present now.

1.4 Research question

Based on the problem background and the research gap - we have established the following research question:

“How do e-commerce managers within the retail industry create brand experiences, through the tools and features of the e-servicescape - and when during the different stages of the digital customer journey are these brand experiences of importance?”

1.5 Purpose

The purpose of this study is to examine how the tools and features of the e-servicescape can be used by e-commerce managers and marketers to create brand experiences. In order to truly understand how e-commerce managers can utilize the different tools and features of the e-servicescape, we do not think it is enough to just identify these tools and features.

We also aim to understand firstly, from which platforms and facets of the e-servicescape these tools and features adhere. Secondly, we also want to investigate which main consideration must be implemented when working with these tools and features to facilitate the best possible brand experiences. Moreover, we also want to investigate and monitor when and where in the digitally adapted customer journey these brand experiences are to be regarded as of most importance. Following the transition towards the experience economy, alongside the immense growth of e-commerce - we argue for the great importance of compiling a theoretically and practically grounded framework of

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how e-commerce can create brand experience. Furthermore, also incorporating the digital customer journey will allow us to deviate from the obsolete perspective of only focusing on the purchase situation. This will provide a holistic view on brand experience, which we argue for will bring value for current and future research in this field.

Furthermore, our research gap consists of a review of previous research, alongside suggestions for future research - further solidifying the importance and need for our study.

Due to the very vague and scattered definitions of for instance, the e-servicescape and its associated tools and features - we will also aim to provide general conceptualizations, to provide a more cohesive, practically and theoretically grounded outlook on our main concepts in this study. We further hope that the ever-evolving nature of our research will generate new and interesting implications, and contingencies which will act as pivotal starting points and sources of inspiration for future research. Through the process of answering our stated research question, we will be able to provide e-commerce managers and other scholars with cohesive and practical suggestions and necessary considerations of how different tools and features of the e-servicescape can be utilized to create brand experiences. While also providing implications of when and where during the digitally adapted customer journey these brand experiences are of importance, which will allow for a more efficient and effective work for e-commerce when designing brand experience, since they will have a clear idea as to when and where these brand experiences should be implemented.

In order to derive these answers, we will conduct in-depth interviews with e-commerce managers and other expertes, responsible for working strategically with e-commerce related questions and initiatives. This will provide a holistic and nuanced approach, necessary to provide the desired answers and insights. With this study, we aim to bring clarity into a field, where we have been able to distinguish a clear research gap. Moreover, we also hope to be able to recommend future research topics stemming from our findings.

Which will constitute further opportunities to deepen the understanding of the research- field. Finally, we aim to give e-commerce managers and marketers concrete recommendations for them to implement into their daily tasks and work, since it will be crucial for them to create brand experience through the tools and features of e- servicescape in the digital customer journey - to keep, as well as to attract new customers and remain competitive

1.6 Delimitations

Distinguished by classical scholars Kotler and Levy, (1969, p. 11), marketing activities, such as the creation of brand experience in this case, can and should be applied to all kinds of different businesses and industries. One industry where marketing and brands fill a specifically important role is within the retail industry (Gilbert, 1999, p. 6). Furthermore, Gilbert (1999, p. 6) argues that creating brand related stimuli in the retail industry is specifically important since retailing has become a brand-dominated activity. This is further suggested by Woodside and Walser (2007, p. 1) who state that the retail industry and brands are intertwined since having a strong and well-designed brand strategy in the retail industry, contributes to the relative power of attracting and retaining customers, over competition

Based on this background, our study is naturally compatible with the retail industry due to the importance of brand-related activities. Moreover, the scope of the retail industry

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pertains to an opportunity where we can find several different interesting interview participants. According to Allabolag (n.d.), there are a number of different ramifications in terms of companies within the retail industry. Some examples are; clothing brands, grocery stores, opticians and pharmacys trade (Allabolag, n.d.). However, in order to provide some further delimitations within the retailing industry, our goal is to review brands which sell products customers spend certain amounts of time actually reviewing and considering.

With different types of products come different levels of involvement customers devote into their purchases. Gu et al. (2012, p. 193) state that high involvement products are types of purchases whereas the customers have fulfilled some sort of information search before they actually buy the product, or service. These kinds of purchases are usually also more of the expensive art even in the e-commerce setting (Gu et al., 2012, p. 193). Thus, we will not approach e-commerce managers at brands selling and providing low- involvement, or habitable products - since it will probably not gain our study any important insights. Thus, we can ensure there is an actual customer journey, as well as that the interviewees spend adequate time to work with brand experience related considerations and actions.

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2. Scientific method

In this second chapter, we will present the philosophical assumptions, research approach, research design and source criticism which we have adopted and followed throughout this study. Furthermore, we will also provide our pre-understandings as well as a presentation as to how our literature search of this study was conducted.

2.1 Philosophical assumptions

2.1.1 Paradigm

When constructing research, it is important to include a section where the research paradigm utilized in the study is identified. The aspects of a paradigm lie in the underlying assumptions and philosophies as to how reality is perceived as well as the nature of knowledge - which functions as the philosophical framework and foundation research lies upon (Collis & Hussey, 2014, p. 42). One could therefore state that a paradigm functions as a measure to determine the epistemological (nature of knowledge) and ontological (perception of reality) point of view for the research (Collis & Hussey, 2014. p. 47).

Aligned with our study and chosen research question, the paradigm known as interpretivism has been implemented since we aim to create a deeper understanding about how e-commerce managers create brand experience for customers with the help of the tools and features of the e-servicescape, as well as when and where it is of most importance in the digitally adopted customer journey. The interpretivism paradigm could be described as the nature of reality which is a function of the observer’s subjective view (Collis & Hussey, 2014, p. 45 ; Saunders et al., 2009, p. 116 ; Snape & Spencer, 2003, p.

7). However, adopting an interpretivist approach might lead to the interactions between the examined subject and the researcher ending up in conclusions which are affected by the researcher’s attitudes and beliefs. The opposite of the interpretivist paradigm is the positivist paradigm, which has been used frequently in earlier studies throughout the history and aims to find casual empirical evidence that justify a chosen argument by researchers (Bryman & Bell, 2011, p. 13; Saunders et al., 2009, p. 11). This is however nothing we aim to do in this study and is therefore not the chosen paradigm. In addition to the earlier argumentation of the chosen paradigm of interpretivism for this study, Collis and Hussey (2014, p. 45) state that the interpretivist paradigm is indeed often associated with a qualitative data collecting method, which is in line with the research design we have adopted in this study to accumulate our data, which further supports our decision of adopting the interpretivist paradigm.

2.1.2 Ontological assumption

The ontological assumption in research refers to the view of how reality is perceived, concerning whether social entities should be seen as unbiased or a product decided by different interactions and subjective perceptions (Bryman & Bell, 2015, p. 32). In this study, we are adopting a constructionist approach since we argue that this ontological assumption is appropriate, since we are performing a subjective study. We adopt this constructionist view since we argue that being subjective will provide us better empirical findings given our research question and the purposes of this study. According to the

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constructionist approach, the knowledge of nature is a result of biased perceptions (MacIntosh & O’Gorman, 2015, p. 55-56), since social constellations are located in a state of frequent revision - and approach questions with an attitude that different categories could be given in advance as well as unaffected (Bryman, 2016, p. 58). In contrast to the constructionist approach is the approach of objectivism which states that quantitative objects are shaped in a universal reality (MacIntosh & O'Gorman, 2015, p. 55-56), which in other words refer to the stance that the reality is objective and not influenced by social constellations (Bryman, 2016, p. 57). Hence, we argue that it is not an appropriate ontological view of our study.

2.1.3 Epistemological assumption

The epistemological assumption considers the researcher’s perceptions of what should be accepted as valid knowledge (Bryman & Bell, 2011, p. 15 ; Collis & Hussey, 2014, p. 47

; Saunders et al., 2009, p. 112). According to Snape and Spencer (2003, p. 13), the epistemological view therefore decides how the knowledge basis is linked to reality. The epistemological approach adopted in this study is the interpretivist approach, which refers to that the interaction and relationship between researchers and their examined subject is subjective (Johansson Lindfors, 1993, p. 45). However, the primary objective of interpretivism is to minimize the distance between the researchers and the purpose of their study - to synthesize an extensive understanding of possible outcomes from the study (Bryman & Bell, 2015, p. 27-28 ; Saunders et al., 2009 ; p. 116 ; Snape & Spencer, 2003, p. 13). Moreover, another purpose of a study with an interpretivist approach is to obtain an understanding of the studied phenomenon, which requires that the researchers can put themselves into the context of the examined subject (Johansson, 2011, p. 96). With a subjective view of knowledge, it is not uncommon for researchers to adopt an interpretivist approach, when conducting social studies (Saunders et al., 2009, p. 116). In line with this argument, since our study is to be categorized as a social study, the interpretivist approach is further substantiated as a compatible assumption. When conducting a social study, it is also common to gather information and data through subjective exchanges (Collis & Hussey, 2014, p. 46), which is in line with our paradigm, our philosophical stance as well as how we will collect our empirical data. In contrast to the interpretivist approach, the positivist assumption exists which commonly is used in quantitative research, where the objective of a study is to identify causality between concepts by investigating the statistical probability (MacIntosh & O’Gorman, 2015, p.

60). In the positivistic assumption the researchers distance themselves from the studied phenomenon, which is not the aim for us in this study, nor is to find any casual relationship, and is therefore not the chosen assumption.

2.2 Research approach

In our study we have examined previous research and theories in order to create a clear, nuanced and deep understanding of the research area. Which will enable us later on to carefully analyze our findings, with the implications and insights synthesized from earlier research. Adopting this approach to analyze previous research and theories, is in line with a deductive approach. Pursuing a deductive approach starts with analyzing theory, to then proceed to collect empirical findings - which allows researchers to conduct a study with a theoretical and conceptual foundation, which later on can be empirically tested (Collis

& Hussey, 2014, p. 7 ; Johansson Lindfors, 1993, p. 55 ; Saunders et al., 2009, p. 146;

Snape & Spencer, 2003, p. 23). The deductive approach is traditionally aligned with an objective paradigm (Johansson Lindfors, 1993, p. 55), however we still argue that the

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deductive approach is the most suitable approach for our study, based on what we are aiming to achieve through our research. Earlier critiques against the deductive approach have pointed out how the process of mindfully and selectively choosing theories among earlier research can affect the results of a study (Johansson Lindfors, 1993, p. 56).

Understanding the implications of this critique is necessary for us to have in mind while conducting this study. However, we still argue that the nature and benefits of using a deductive approach provide the most value for our study - since theoretical implications and insights from previous research conducted within the areas of brand experience, e- servicescape and the customer journey, will constitute an essential foundation for this study. Even though the deductive approach is the one chosen for this study, there is another approach called inductive approach, which in contrast to the deductive approach, data meets theory rather than the other way around (Saunders et al., 2016, p. 147). Bryman and Bell (2015, p. 25-26) state that theory in an inductive study is based on observations and an empirical reality. Since we built our theoretical and conceptual framework before collecting any data, the deductive approach was used in this study even though historically the inductive approach is more common when doing subjective research (Johansson Lindfors, 1993, p. 55).

2.3 Research design and methodological choice

The research design and methodological choice of a study constitute crucial measures and can be characterized as the blueprint and foundation for the researcher to build the study on (Saunder et al., 2009, p. 136). Throughout the process of conducting studies, researchers utilize the “blueprint” to guide them when analyzing and gathering data - connected to the formulated research question. Saunders et al. (2009, p. 138-139) describe how the research design is commonly divided into three different ramifications of design; the explanatory, the exploratory and the descriptive. Due to the nature of this study, we have chosen to pursue and embrace the exploratory design. Collis and Hussey (2014, p. 4) explain how the exploratory design aims to utilize and adopt pattern- allocating characteristics, to gain deeper and more nuanced insights regarding specific theories, subjects or phenomena. In order for the exploratory design to fulfill its exploratory purpose and nature, Collis and Hussey (2014, p. 4) emphasize that it is essential for the examined research topic or subject to have seen non-existent, or limited research previously. During chapter one of this study, we clearly established a research gap, which has been deduced from a rigorous literature review. Moreover, our purpose and research question are formulated on the basis of exploring this research gap, to provide value and clarity through our new findings. Thus, we argue that the very nature of chapter one functions as a clear, and stark justification as to why this thesis should pursue and embrace the implications, and shape of an exploratory research design.

After deciding upon which research design to adopt, researchers must subsequently select a suitable approach regarding data collection for the research. Collis and Hussey (2014, p. 4) explain how researchers primarily two overarching approaches for data have gathering, qualitative or quantitative. In accordance with our study, we have chosen to embrace a qualitative study. Bryman and Bell (2011, p. 386) describe that a qualitative study seeks to map and understand specific behavior and beliefs of the topic being studied.

Rather than establishing generalizable findings, which could be adopted in many different contexts, as with quantitative data (Bryman & Bell, 2015, p. 150). This is in accordance with our research question and purpose, where our goal is to create a deeper understanding, and not generalizable findings. Furthermore, Saunders et al. (2009, p. 574)

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state that the qualitative approach seeks to establish and develop a conceptual framework, including different techniques for data collection and analysis. This is additionally something which we aim to achieve, since establishing a framework will provide a cohesive and holistic understanding of our study. Bryman and Bell (2015, p. 37-38) state that the qualitative approach is often associated with interpretivist research, which is also in line with our study. Based on the characteristics of the qualitative study, alongside its compatibility and alignment with the interpretivist stance - adopting a qualitative data collection method will be ideal for our study. This is further supported by Saunders et al.

(2012, p. 163) who state that if methodological assumptions and philosophical stances are on par and aligned - implementing a qualitative approach is logical.

2.4 Pre-understandings

According to Johansson Lindfors (1993, p. 25), researchers can adopt many different approaches when conducting studies, while they will always be influenced by previous experiences and pre-understandings. This will, according to Johansson Lindfors (1993, p.

25) always influence the implementation of the actual study. Furthermore, Coghlan (2011, p. 60) contextualizes pre-understandings further, and describes how they also can refer to different settings and experiences, from which researchers have obtained their knowledge base and insights from. In terms of a broader definition, Johansson (2011, p. 96) describes pre-understandings as “a number of more or less unaware assumptions”. Based on these assumptions, researchers conduct initial interpretations of the designated research topic.

These initial interpretations more often than not constitute an important foundation, in terms of guiding the researcher when he or she is investigating specifics and details of the research topics (Johansson, 2011, p. 96). Meanwhile pre-understanding can constitute important guidelines for the individual researcher, pre-understanding can also create potential separations and splits between researchers and their outlook on research topics and studies. Based on these implications, having similar backgrounds and experiences are important and can help the study in many ways. We both are pursuing a master’s in marketing, and have previous experience working with brands in the retail industry. Thus, the process of creating this study has been positively influenced by us having like-minded interpretations and experiences regarding our research topic. Moreover, during the spring of 2020, we both wrote our degree project. Our degree projects focused on e-commerce and branding respectively, which was pivotal for us to end up in this specific research area. This rigid, and in many ways complementary background has seen us merge together extremely well, and enabled us to review literature, as well as approach the design of this research study extremely effectively.

From our respective degree projects alongside our mutually pursued master’s in marketing, we have intertwined different implications from the marketing discipline overall, alongside specifics from the context of e-commerce and branding. These experiences and pre-understandings led us to quickly understand the importance of creating brand experience in today's business environment. The process of finding our research topic based on previous professional and educational experiences is by no means uncommon. Bryman and Bell (2011, p. 30) argue that pre-understandings in many ways can be deduced from previous experiences derived from certain industries or education.

While Gilje et al. (2007, p. 139) add that previous experiences can lead to researchers interpreting the topic differently or similarly. Thus, we can comfortably establish that our pre-understandings derived from both our professional and educational backgrounds have constituted a powerful tool for us to approach this study. It has enabled us to review

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literature, map research gaps as well as recognize the importance and potential impact for marketers and e-commerce managers with our presented results. Naturally, since we have written extensive studies separately before, we have experienced differences in terms of how we approach certain methodological aspects of conducting a study. However, we have always been very careful of maintaining a climate where there are no binary answers.

This has enabled us to learn from each other's previous experiences and find great combinations where we complement each other.

2.5 Literature search

There are different ways to conduct a literature review. Bryman and Bell (2015, p. 9) state that a literature review is a very important part when analyzing current literature in a chosen field of science and is necessary to include when undertaking research. The literature review makes it possible for us to create a general understanding of the existing field, and therefore show our ability, to in an accurate manner, decide which knowledge and theories we argue are appropriate for this study (Collis & Hussey, 2014, p. 87). The literature search could be considered as a complex and prolonged process, and therefore time management is of significant value (Saunders et al., 2009, p. 75). Bryman and Bell (2015, p. 91-92) state that in order to find relevant information, this could effectively be done by covering and reviewing reference lists of previous research.

Further on, Bryman and Bell (2017, p. 121) describe a systematic literature search as a process with the aim to collect a number of empirical findings which cover all of the necessary theoretical aspects within the designated study. In a detailed and systematic literature search, Bryman and Bell (2017, p. 121) state that the authors of a study present an exhaustive literature review that is free from distortions, where researchers have looked for unpublished and published studies and examined these carefully. Au contraire, there is the approach known as traditional narrative literature review. This method is described as more sporadic than the systematic approach (Bryman & Bell, 2017, p. 121). Bryman and Bell (2017, p. 125) claim that the traditional narrative literature approach is concerned with gaining an initial understanding of a research field, where more nuanced and extensive knowledge is needed. On the contrary to a given path, the traditional narrative approach is described as an uncertain journey (Bryman & Bell, 2017, p. 125). In this study, we have adopted the traditional narrative literature review, as we have searched through previous and existing research such as scientific articles, books and with key words through various databases, to collect and review relevant research. Rather than following a given path, we have moved on to new articles found in previous research during our literature search.

In this study, the theoretical framework is structured and built upon previous research conducted from scientific articles as well as books related to our chosen subject. The databases used to collect relevant data were located through databases such as the Umeå University Library’s database, Google Scholar and DiVa. Through the Umeå University Library resources EBSCO host and Emerald Journal was mainly used as well as their selection of relevant books. Examples of key words used in the literature review of this study were: experience economy, brand economy, brand equity, brand experience, brand experience dimensions, e-commerce & Covid-19, e-servicescape, tools and features of the e-servicescape and the digital customer journey.

”THE EXPERIENCE IS THE BRAND”: A qualitative investigation of how e-commerce managers in the retail industry create brand experience, through the tools and features of e-servicescape