RESEARCH PROPOSAL A STUDY OF RELATIONSHIP BETWEEN BRAND EXPERIENCE

ABSTRACT

The purpose of this study is to examine how is the relationship between brand experiences on consumer satisfaction with social media facebook as moderator. This study is expected to provide knowledge for marketers about how the consumers perceived the overall brand experience and its effect towards satisfaction and also how consumer value brands social media. In this study brand’s facebook page is considered to be a moderator of the relationship between brand experience and customer satisfaction.

Keywords : Brand Experience, Experience, Social Media Facebook, Satisfaction.

1. Introduction

Each brand on the market today continues to strive to meet what consumer needs. Every brand tries to communicate its benefits. There are changes nowadays that occur in the market than just selling and promoting the product, by giving experience to consumers. This is important to meet the consumer expectation in the experience era (Keng and Tran, 2013).

According to Tsai (2015), the key to meet the consumers today’s expectations is to understand how consumers get the experience of a brand such as experience when using the product, while receiving or reading the flyer, or see ads that are shown on the TV. It allows marketer to determine the right marketing strategy for a brand because marketer can understand what consumer expectation when they get exposure from certain a brand through various channels in marketing communications. These usually described in the Integrated Marketing Communication concept.¹

Gurau (2008) argues related with marketing communications. The concept of Integrated Marketing Communication (IMC) is becoming important for marketers to create one voice one look communication. Various channels of IMC concept becomes a tool to create experience for consumers. Consumption made by consumers today are rich in experience. Consumer perception of certain brand are gained by the experience (Keng, et al). Therefore, to win consumers many brands compete on creating experience for their brand. Talking about the experience of consumers towards a brand, Brakus, Schmit, Zarantonello in 2009 define the brand experience, that is a subjective response of internals consumers (in the form of sensations, feelings, or knowledge) and also the response in the form of an attitude that comes from the stimulus of design and identity a brand, packaging, communication, and also environment. Experience that consumers received can be any object that come from a brand such as in the condition when consumers are search for brand, shopping, or taking a brand. Color, product shape, typeface, design, slogan are the examples which affects the sensory experience, emotional, and intellectual experience. Brakus (2001) describes the form of the experience include music, graphics and visual effects only appear in advertisements, but also on the design, packaging, and website in order to attract consumers. Experience of a brand can even occur when consumers are not looking for a brand. Brakus explained dimensions that form brand experience: sensory, affective, behavioral, and intellectual. According to Tsai (2015) experience that are acceptable to consumers, will lead to its own assessment for consumers and become decisive factor toward consumers satisfaction.

Brakus, Schmit, and Zarantonello said that with the experience received by consumers, this will have an impact on satisfaction. With the positive experience of the whole experience a brand, of course, consumers are expected to repeat back positive experience, so this will have an impact on customer satisfaction.

Today, the internet-based promotional media such as websites and social media has become a must-have for a brand to communicate with the target market. Chow and Shi (2015), in their study stated that the brand page is popular business applications that can provide added value to consumers, for example, is Social Networking Sites (SNS). Examples of SNS is Facebook, Twitter, and Microblog, or more commonly known as social media. In social media, a brand has its own page or separate account (brand page) where a variety of product-related information can be obtained by consumers. Brand page on a social media account is designed so that the brand can post information and communicate for their consumers. In his research, Chow and Shi use the theory of Consumer Value Theory (CVT). CVT is a theory that explains how consumers value on social media brand. In this study, Chow and Shi explained that the assessment of social media can be measured through the Functional Value, Social Value, and Emotional Value. Brands can also interact directly to consumers, so that there is a two-way communication such as giving comments, like, or pass on the information available to colleagues or other parties (Chow and Shi, 2015).

Vries and Carlson (2014) states that many brands today are focusing on consumer engagement through social media such as facebook, twitter and youtube so that it allow consumers to directly interact and feel the experience with the brand and share experiences to others. Goldfarb (2013) adds that today more and more consumers are using the internet and it make the Internet become a medium of advertising, including Google and Facebook whose income is largely derived from advertising. Kaufman and Horton (2015), argues related to this condition. According to Kaufman and Horton, currently the world entered the era of digital marketing where the internet becomes very important role in the marketing world.

The existence of social media to support brand communication plays an important role at this time. It should be exist at this time and most likely will affect the consumer experience obtained and customer satisfaction. Many social media used by brand able to communicate with its customers. Become a challenge for companies to be able to provide a positive experience on social media assets that they have assets affect the overall experience of the consumer brand experience. The question whether today' in digital era, companies that already use traditional social media assets can provide added value to the consumer and thus affecting the assessment of the overall consumer experience to a brand and leads to customer satisfaction? The purpose of this research proposal is to explore the effect of brand experience on customer satisfaction with social media facebook as moderator.

This study refer to several research but the concept of brand experience and social media value can be found in two different studies. Both proved that either brand experience or social media value related to consumer satisfaction. However, there is no research that explains how is the relationship between the brands experience, social media value and its relationship to consumer satisfaction. The existence of social media in this study is the moderator variable that determines the strengthen of relationship between brand experience and customer satisfaction.

2. Literature Review

1. Brand Experience

Marketing theory explains that the success of a product can be affected by several factors such as the functional features of the product or a unique value proposition that is owned by a product. According to Nysveen et al (2012) today consumers do not just buy a product and services but also experience. Nysveen said that consumers actually seek sensory stimuli of a brand. Only brand that aware of this condition would be considered as valuable brand.

As a result of this, many businesses use the unconventional way in promoting their products. Communication of a product is not only in problem-solution but also includes other elements such as music, graphics and visual effects that not only appear in advertisements, but also on the design, packaging, and websites that can attract consumers (Brakus, 2001).

Kim, 2002 explains that in web design, factors such as the layout and appearance of the product, has great potential to build engagement in unique and fun way experience. Brakus in his research explaining the concept of Consumer Experience. According Brakus experience is the marketing stimuli such as advertising, packaging, products, logos, stores, and a website or anything else containing affordance (information that is embedded in the minds of consumers). Brakus and Zarantonello define brand experience as subjectively consumer response that emerged as a result of the attributes of a particular experience.In a study conducted by Brakus in 2001, the consumer experience creation process comes from what is called the Modular. Modular is an area of the human body that interact directly with the environment, causing a response. Modular will form a memory, information, and knowledge assembled a thing.

Brakus & Zarantonello (2009) to describe the Brand Experience in marketing consists of:

1. Sensory module which is formed of a response to sensory information contained in marketing stimuli and brought impression and memory of a brand. Zarantonello explains that sensory aspect is composed of Visual, Auditory, tactile, gustative, olfactory stimulations

2. Affective module, formed from the response to marketing stimuli information affective or emotional, or emotional relationships between consumers and brands. Zarantonello explain aspects of affective is feelings and the emotional connection between the product to the consumer (sentiment)

3. Intellectual Module, formed from the response to the intellectual and creative consumer engagement elements or in the form of ideas. An example is to think innovative or creative that can raise curiosity.

4. Bodily Module / Behavior that react to consumer information in the context of the physical body for example, bodily experiences, lifestyle, and interaction with the brand.

Brakus & Zarantonello stated that brand experience related with satisfaction because brand that can provide good experience will lead to consumer satisfaction on meeting consumers expectation.

2. Customer Value Theory (CVT)

According to Sweeney (1998), perceived value is defined as consumers' overall assessment in using product based on the perception of what they get. In another statement, the concept of perceived value is a ratio or a trade-off between quality and price or "Value for money" concept on the other hand.

Chow and Shi (2015) in their study used the concept of Consumer Value Theory (CVT) to measure how consumer value certain brand pages (pages of a brand on social media accounts) on Social Networking Sites or widely known as social media owned by a brand toward customer satisfaction and positive word of mouth. Consumer Value Theory in research Chow and Shi is a theory that is used to see how the consumer perception of the brand page in the Social Networking Sites. In Consumer Value Theory formed several factors to measure brand page:

1. Functional Value

Aspects of the brand quality on a brand page. On functional value measured related to the validity, objectivity, wealth (richness), and diversity. Indicators in Functional Value are the Information Quality, Product-Related learning, and Economic Benefit.

2. Social Value

On the social value will be measured how consumer interaction between users/ Other brand followers page. Social Value will be measured through Interactivity, Collaboration and Social Pressence.

3. Emotional Value

Emotional Value will measure how the level of consumers feeling; happy / entertained, raises attraction, stimulation, or curiosity coming from the information on the brand page. Emotional value will be measured by the Entertainment and Arousal.

In his study, it is proven that consumer value theory affect satisfaction on brand page.

3. Customer Experience in Digital Media Marketing

Budikova (2014) stated that consumers nowadays are faced with an era where social media and technology become inseparable in their daily lives. One of the changes are shifting from mass marketing communication models to become more personal communication resulting better relationships between brand and consumer. Shyu et al (2015) in his study claimed that digital marketing is a non-traditional marketing models. Digital Marketing is the marketing activities that use information technology and digital instrument. Through Digital Media Channel marketers are possible to establish two-way communication, continuous and personalized directly with consumers. Huang (2009) compare between traditional marketing and digital marketing are:

1. High Efficiency

Instruments of information can help marketers to integrate both horizontally or vertically on communication

2. Penetrating Power

The increasing number of media and communication channels make marketers more easily communicate with potential customers.

3. Interactivity

Measurement information in real time to make marketer accurately see the related request of the customer

Budikova said that marketers should creating on how to make digital media as a good investment that is not only just as a medium to access information and entertainment, but also a new experience for consumers. Marketing on many companies are now more interactive and "always on", the purpose is to convey the experience efficiently, relevant, and focused on consumer (Stone and Woodcock, 2013).

Kaufman and Horton (2015) in his book, quoting from Armstrong and Blackwell related on how to build relationships with consumers in the digital era. In the past marketing activities include mass marketing strategy and wide market segment. Meanwhile, today's customer engagement is important. Marketer need to focus on building relationship with certain target market and many companies now using digital and new social media to build brand consumer relationship.

4. Customer Satisfaction

The definition of customer satisfaction is the consumer response from the evaluation of the perception of the discrepancies between the expectations and the actual performance of a product (Nysveen, et al, 2012). This definition departs from the disconfirmation theory states that satisfaction is a condition in which the expectations of the performance of a brand confirmed through consumer perception towards the performance. In relation to the experience, Tsai et al back believes that customer satisfaction is a complex emotional response of consumers at the time of the purchase experience. By using the affective perspective of customer satisfaction, customer satisfaction gradually acquired through experience and evaluation.

According to Aaron (2006), customer satisfaction (satisfaction) obtained from the condition whether consumer expectations equal, exceeds, or below. These condition can arise from consumption experience, as the result of marketing communications.

3. Method

Based on the literature review, it is stated that brand experience affected satisfaction. Customer value on social media also affected to satisfaction. Based on both studies, proposed model on this research proposal are shown in figure 1:

Figure 1 Research Model

In this study, the variables to be studied is as follows:

1. Sensory, sensory stimulation consumers of a brand, build an impression and memory of consumers towards a brand.

2. Affective, emotional relationships between consumers and a brand.

3. Behavior, the formation of brand experience that is experienced by consumers related to the physical body, the behavior in the long term and also the lifestyle of consumers, everything that is derived from the interaction with the brand.4. Intellectual, interaction with the brand can stimulate consumers to think related with intellectual, ideas, and innovation.

4. Satisfaction, a condition in which consumers find what they receive appropriate or not appropriate to their expectations, giving rise to a feeling of satisfaction or not satisfied.

5. Information Quality, is the perception of the overall assessment and the reliability of the information recorded by the brand on the brand page.

6. Product Related Learning, is a product-related information provided by the brand that is usually required consumers.

7. Economic Benefit, are the economic benefits gained by consumers when accessing a brand page for example got a gift, coupons or rebates.

8. Interactivity, is a condition in which consumers are accessing brand page can interact with fellow users or visitors brand page

9. Collaboration, defined as a condition where the users or visitors brand page can help each other and support one another.

10. Social pressence, defined as a condition in which the presence of the brand page provides a touch of warmth because of their social interaction among its members. Brand page not only as a medium to get information, but also a forum to interact with fellow members.

11. Entertainment, is the consumer perception of feeling happy, entertained, or relax because access to the brand page.

12. Arousal, is related to the perception of interest, stimulation, or curiosity due to interaction with the brand page.

Based on the model, indicator can be explained as follow:

Figure 2 Operationalization Concept

1. Research Hypothesis

In this study, the research object is divided into two, the first will be measured how consumers' perception on overall brand experience and customer satisfaction. Second, consumers will be asked to rate how their perceptions of social media facebook.

Based on research conducted by Brakus, Schmitt, and Zarantonello (2009), Brand Experience proved to have a positive relationship to satisfaction. With a variety of positive experiences received by the consumer, the consumer would be less likely want to repeat the experience which had an impact on customer satisfaction. So in this study, the hypothesis are:

H1: Overall Brand Experience has positive effect on satisfaction.

Then, the hypothesis in the study continued to conditions under which customer satisfaction with the overall experience also determined by the assessment of the Social Media. Consumers that have positive assessment of the Social Media will effect the positive relationship that exists between Brand Experience to consumer satisfaction. Thus, the second hypothesis in this study is:

H2: Consumer Value Social Media Facebook moderate the relationship between the overall brand experience of Garuda Indonesia and satisfaction.

2. Research Object and Sampling

This study is choose Garuda Indonesia airlines as an example to discuss the experience and behavior between consumers, brand, and social media. Respondent will be chosen from those that have visited and contributed in Garuda Indonesia Facebook for the last 1 weeks and ever use Garuda Indonesia airlines. Garuda Indonesia is considered to have a positive assessment on consumers perception, because of the consistency in providing service to consumers. On the other hand, social media Facebook Garuda Indonesia also actively interact with it users

3. Measurement

The measurement tools in this study were adopted from the research literature. The scale items were measured on a 5-point Likert scale using the following responses, "strongly disagree", "do not agree", "no opinion", "agree", and "strongly

agree”.

4. Summary

Today experience become important things for consumer. Consumers no longer need product benefit, but now experience also needed. Brand Experience it self will allow consumer to create perception on certain brand. On the other hand, source of experience can be from digital because digital become important channel. Good experience will effect satisfaction for consumer. It is important to understand how is the relationship between brand experience toward satisfaction considering social media facebook as moderator. Company that want to deliver greater satisfaction should provide good experience on social media also.

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The 2017 International Conference on Management Sciences ( ICoMS 2017) March 22, UMY, Indonesia

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