Impact of Service Encounter Elements on Experiential Value and Customer Loyalty: An Empirical Investigation in the Coffee Shop Context

The unprecedented dynamism in marketing has led to the transition of economy from service economy to experience economy. Modern age consumers give more emphasis to the hedonic attributes of offerings than to functional attributes. Consequently, the present study aims to provide a deeper understandin...

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Main Authors: Nadia Rashid, Fayaz A. Nika, George Thomas
Format: Article
Language:English
Published: SAGE Publishing 2021-11-01
Series:SAGE Open
Online Access:https://doi.org/10.1177/21582440211061385
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author Nadia Rashid
Fayaz A. Nika
George Thomas
author_facet Nadia Rashid
Fayaz A. Nika
George Thomas
author_sort Nadia Rashid
collection DOAJ
description The unprecedented dynamism in marketing has led to the transition of economy from service economy to experience economy. Modern age consumers give more emphasis to the hedonic attributes of offerings than to functional attributes. Consequently, the present study aims to provide a deeper understanding of experiential value, its antecedents, and consequences in the context of coffee shops. More specifically, this study examines the effect of service encounter elements on experiential value and the consequent effect of experiential value on customer loyalty. Using purposive sampling, data were collected from 387 customers of coffee shops using a questionnaire survey which was later analyzed using Structural Equation Modeling. The results reveal positive linkages between service encounter, experiential value, and customer loyalty. Positive cognition of service encounters have positive effects on experiential value and customer loyalty. Besides, experiential value also has a positive effect on customer loyalty. Lastly, experiential value partially mediates the relationship between service encounters and customer loyalty.
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spelling doaj.art-9229c10812b442d39e48d99eca703fab2022-12-21T20:34:03ZengSAGE PublishingSAGE Open2158-24402021-11-011110.1177/21582440211061385Impact of Service Encounter Elements on Experiential Value and Customer Loyalty: An Empirical Investigation in the Coffee Shop ContextNadia Rashid0Fayaz A. Nika1George Thomas2Central University of Kashmir, Ganderbal, JK, IndiaCentral University of Kashmir, Ganderbal, JK, IndiaDepartment of Marketing, College of Business Administration, Prince Sultan University, Riyadh, Saudi ArabiaThe unprecedented dynamism in marketing has led to the transition of economy from service economy to experience economy. Modern age consumers give more emphasis to the hedonic attributes of offerings than to functional attributes. Consequently, the present study aims to provide a deeper understanding of experiential value, its antecedents, and consequences in the context of coffee shops. More specifically, this study examines the effect of service encounter elements on experiential value and the consequent effect of experiential value on customer loyalty. Using purposive sampling, data were collected from 387 customers of coffee shops using a questionnaire survey which was later analyzed using Structural Equation Modeling. The results reveal positive linkages between service encounter, experiential value, and customer loyalty. Positive cognition of service encounters have positive effects on experiential value and customer loyalty. Besides, experiential value also has a positive effect on customer loyalty. Lastly, experiential value partially mediates the relationship between service encounters and customer loyalty.https://doi.org/10.1177/21582440211061385
spellingShingle Nadia Rashid
Fayaz A. Nika
George Thomas
Impact of Service Encounter Elements on Experiential Value and Customer Loyalty: An Empirical Investigation in the Coffee Shop Context
SAGE Open
title Impact of Service Encounter Elements on Experiential Value and Customer Loyalty: An Empirical Investigation in the Coffee Shop Context
title_full Impact of Service Encounter Elements on Experiential Value and Customer Loyalty: An Empirical Investigation in the Coffee Shop Context
title_fullStr Impact of Service Encounter Elements on Experiential Value and Customer Loyalty: An Empirical Investigation in the Coffee Shop Context
title_full_unstemmed Impact of Service Encounter Elements on Experiential Value and Customer Loyalty: An Empirical Investigation in the Coffee Shop Context
title_short Impact of Service Encounter Elements on Experiential Value and Customer Loyalty: An Empirical Investigation in the Coffee Shop Context
title_sort impact of service encounter elements on experiential value and customer loyalty an empirical investigation in the coffee shop context
url https://doi.org/10.1177/21582440211061385
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