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From Customer Value To Engineering Pleasurable Experiences: in Real Life and Online
From Customer Value To Engineering Pleasurable Experiences: in Real Life and Online
Hotel companies need to appeal to all their guests’ senses on web pages that invoke pleasurable
experiences.
T
his commentary extends a series of articles reporting the researchers asked a national sample of hoteliers to report on
guests’ and intermediaries’ perspectives on the U.S. the best practices in the various functions of hotel management
lodging industry’s best practices, captured in the course (functional best-practices champions). Beyond performance
of a national study conducted in the late 1990s.1 In that study in specific functional areas, respondents were also asked to iden-
tify those properties or chains that were recognized as overall
1
See: L. Dubé and L.M. Renaghan, “Building Customer Loyalty,” Cornell leaders in the diverse segments of the industry, and in the indus-
Hotel and Restaurant Administration Quarterly, Vol. 40, No. 6 (December try as a whole (overall best-practices champions). The research-
1999), pp. 78–88; L. Dubé and L.M. Renaghan, “How Hotel Attributes ers then interviewed a large national sample of guests and inter-
Deliver the Promised Benefits,” Cornell Hotel and Restaurant Administra-
tion Quarterly, Vol. 40, No. 6 (December 1999), pp. 89–95; and L. Dubé mediaries who had been customers of these best-practices
and L.M. Renaghan, “Creating Visible Customer Value,” Cornell Hotel and champions, inviting them to say whether the hotel or the chain
Restaurant Administration Quarterly, Vol. 41, No. 1 (February 2000), had delivered the value they expected and to specify which hotel
pp. 62–72; L. Dubé, C. Enz, L.M. Renaghan, and J.A. Siguaw, American
Lodging Excellence: The Key to Best Practices in the U.S. Lodging Industry attributes had made the greatest contribution to such value.
(Washington, DC: American Express and the American Hotel Foundation, The respondents also indicated whether receiving such value
1999); and L. Dubé, C. Enz, L.M. Renaghan, and J.A. Siguaw, “Best Prac- had a substantial effect on their future purchase and loyalty.
tices in the U.S. Lodging Industry: Overview, Methods, and Champions,”
Cornell Hotel and Restaurant Administration Quarterly, Vol. 40, No. 4
(August 1999), pp. 14–27. © 2003, CORNELL UNIVERSITY
In subsequent presentations, there were two In this article we build on that prior work
facets of these results that attracted readers’ and and draw from what has been called “experi-
listeners’ attention. Surprise arose first from ence engineering” or “experiential branding
the discrepancy between the guests’ frequent and marketing” to inspire the further devel-
mention of physical attributes as an important opment of best practices that have a high cus-
source of value and the minuscule number of tomer payoff. We address first the challenges
property-related best practices. In contrast, a involved in designing and orchestrating ob-
discrepancy of this kind did not exist for func- jective hotel attributes to create specific plea-
tions related to people and processes, as both surable experiences that reliably define a
guests and operators recognized the impor- hotel’s or a chain’s positioning. As an ever-
tance of those attributes. Since that research increasing number of firms compete for the
was conducted, new hotel products (the brand consumer’s mind, heart, and wallet, even
W, for instance) have carved profitable manufacturers of commodity products need
niches on the basis of esthetic design qualities to weave experiences around their brands to
or other innovative physical features, and such gain competitive advantage. 2 At the same
attributes have become distinctive sell- time, travel-related purchases have become
ing propositions in numerous advertising the largest customer-spending category on the
campaigns. web, and a growing proportion of commer-
Surprise persisted when managers learned cial transactions in the lodging industry is
that only one out of two customers who stayed moving to the internet.3 Consequently, it is
with one of the best-practices champions was critical for firms to understand how best to
able to remember something particularly pleas- represent the customer experiences promised
ant that stood out during their last visit to the in their brand positioning via the web envi-
hotel. At the same time, loyalty was higher by ronment in a way that fosters customer ac-
a factor close to 50 percent for the customers quisition and retention. Having the ability
who could recall some particular facet of the to convey the pleasurable experiences that are
stay (as compared to the other half of respon- at the core of a property’s or chain’s position-
dents who could not recall anything special). ing appears essential to prevent the
Creating visible customer value, every day and commoditization of the industry that can
every stay, resulted in greater loyalty—and this follow from current practice in electronic dis-
was the case across all industry and customer tribution of emphasizing price or general
segments. quality levels over distinctive brand images
To further understand the source of these and experiences.4 We illustrate our argument
champions’ leadership, it was necessary to iden- with preliminary results from an ongoing,
tify the precise attributes necessary to deliver cross-industry research program on the en-
the value guests expected. In that regard, the
researchers were able to link hotel attributes 2
Marc Gobé, Emotional Branding (New York: Allworth
that, at least in the customer’s mind, were criti- Press, 1999); Joseph B. Pine II and James H. Gilmore, Wel-
cal to delivering expected benefits, typically come to the Experience Economy (Boston: Harvard Business
School Press, 1999); Bernd H. Schmitt, Experiential Brand-
promised in the property’s or brand’s position- ing (New York: Free Press, 1999).
ing. Mapping and communicating the relation- 3
See: “Online Travel Spending Surpasses $1 Billion in Janu-
ship between specific attributes and the dis- ary,” cyberatlas.internet.com (consulted 01/10/2003); and
tinctive benefits promised by hotel brands The Score by comScore Media Metrix,
emerged as important not only for guests but imediaconnection.com (consulted 01/10/2003); and Bill
Carroll and Judy Siguaw, “Evolution in Electronic Distri-
also for travel agents and other intermediar- bution: Effects on Hotels and Intermediaries,” The Center
ies. Intermediaries typically valued brands that for Hospitality Research at Cornell University, 2003;
had a clear and strong image that would guide www.chr.cornell.edu.
guests’ choices. 4
Ibid.
gineering and branding pleasurable customer action with the brand, from purchase, to use, to
experiences.5 detachment.
Recent research confirms that consumers
Branding and Engineering readily classify pleasurable experiences as being
Customer Experience one of four possible types: (1) sensory (or physi-
The best-practices study pointed to specific ho- cal) pleasure that is chiefly borne of the pleasant
tel attributes as drivers of particular benefits, such sensations induced during the experience;
as having a worry-free or comfortable stay, that (2) social pleasure derived from one’s interactions
positioned a hotel or a hotel brand in the guest’s with others (or lack thereof, as in the pleasure of
mind. The attribute that was the most impor- solitude); (3) emotional pleasure borne of feel-
ings, ideas, or mental images; and (4) intellec-
tual pleasure from appreciating the complexity
and subtleties of things around us.6 As examples,
For one customer out of two, the benefit of Banyan Tree Hotels pays particular attention to
the marriage of textures and colors in its guest
saving time was primarily linked to the effi- rooms to please the senses; elements of the Club
ciency of the check-in and check-out process. Med experience are designed to foster social
interactions; spa retreats, honeymoon destina-
tions, and selected resorts focus on creating
tant driver for a worry-free stay was top perfor- “magic” and warm emotional reactions and
mance of employees, while the quality of guest- memories; and the designs of I.M. Pei and other
room design was the foremost indicator of the architects can create an intellectual fascination
ability to deliver comfort. Furthermore, for one with certain hotels.
customer out of two, the benefit of saving time Considerable challenges await developers of
was primarily linked to the efficiency of the best practices that are in line with a brand’s expe-
check-in and check-out process. Recent devel- riential positioning. Whereas functional benefits
opments in experiential branding and market- can be specified with relative ease and translated
ing suggest that, beyond linking hotel attributes into technical specifications whose production
to the benefits they create for the customer, it is can be controlled, experiences are, by definition,
possible to orchestrate different objective ele- intangible. Even more important, for the argu-
ments under managers’ control (e.g., physical, ment we are making in this commentary, experi-
human, and communication resources) to shape ences are also personal, involving subjective re-
customers’ perceptions in a manner that creates actions, private emotions, and mental images.
pleasurable experiences. By experiential brand- Different types of experiences present distinct
ing, we refer to positioning strategies that prom- affective profiles. For instance, sensory pleasure
ise a certain type of pleasurable experience, typically is reasonably simple, arising from mere
encompassing all or part of consumers’ inter- physical hedonic responses. By contrast, a rich
constellation of affective reactions generally de-
scribes social, emotional, and intellectual plea-
5
D. Sears, J. Le Bel, and L. Dubé, “Differentiating Hedonic sures, in which simple positive responses like fun,
Consumption on the Basis of Experiential Qualities and
Emotional Make-up,” Advances in Consumer Research, ed. joy, and happiness may co-exist with more com-
Barbara E. Kahn and Mary-Frances Luce, ACR Proceedings,
Vol. 30, No. 1 (2003, in press); L. Dubé, J. Le Bel, A.
6
Mukherjee, and D. Vakratsas, “Experiential Branding in L. Dubé and J. Le bel, “The Categorical Structure of
Web Environment: Consumer Perceptions of Successful Pleasure,” Cognition and Emotion, Vol. 17 (2003), pp. 263–
Design Parameters,” The Fifth International Conference on 297; J.L. Le Bel and L. Dubé, “A Differentiated View of
Electronic Commerce Research, 2002; and J. Le Bel, D. Sears, Pleasure: Review of the Literature and Research Proposi-
and L. Dubé, “Experiential Branding for E-services: Assess- tions,” in European Advances in Consumer Research, Volume
ing Critical Web-design Parameters,” Working Paper, Fac- 5, ed. A. Groeppel-Klein and F. R. Esch (Valdosta, GA:
ulty of Management, McGill University, 2003. Association for Consumer Research, 2001), pp. 222–226.
pleasures people derive from these services— the web. Not only is the web a point of sales, but
presumably a reflection of the wide variety of it is a means to communicate the specific plea-
positioning strategies adopted by various brands sure at the core of the experiential promise. In
within each category. A similar pattern emerged fact, a hospitality firm’s website can even become
at the brand level: the majority of travel, tour- part of the experience itself.
ism, and hospitality brands were associated with Regrettably, many companies look at the
social pleasure. The following notable exceptions internet as just another (obligatory) advertising
emerged, however. Disney Cruise Line was asso- vehicle or a simple sales tool. Some airlines, for
ciated with both social and emotional pleasures, instance, merely offer their customers the chance
in line with the company’s positioning of pro- to order tickets online. Others, like British Air-
viding “magical moments” for families and chil- ways and Virgin Atlantic Airlines, are actively
dren of all ages. Sandals Resorts invoked associa- using their websites to promote the distinctive
tions of three types of pleasure (i.e., sensory, aspects of the experience they deliver, even using
social, and emotional) with about equal fre- the online interaction to handle some services and
quency. Le Saint-Sulpice, a recently opened bou- tasks and to build anticipatory pleasures for the
tique hotel in Montreal, was associated with sen- onboard experience to come.
sory and emotional pleasures. For instance, Virgin Atlantic (VA) offers an
We believe that considerable return on invest- interactive tour of its award-winning redesigned
ment awaits individual hotels or chains (and the upper-class service—from the chauffeured ride
lodging industry as a whole) in developing best to the airport to the club-house lounge at the
practices that depict the alignment of objective destination airport. In addition to building brand
hotel attributes—whether related to the physi- identity, the site is engineered to convey the many
cal properties, to the people, or to the processes— pleasures to be experienced on a VA flight, in-
with the brand’s promise and the guest’s expec- cluding the beauty-therapy area, where pampered
tations of experiential value. This appears to be a guests can enjoy an in-flight massage. Building
necessary step before pleasurable guest experi- on the power of anticipation, VA also used its
ences can systematically and reliably enhance a site to introduce its “upper-class suite,” where
brand’s equity, support price differentiation, and users can essentially experience their own suite
ensure repeat purchase and loyalty. in the skies. In keeping with the experiential-
marketing concept, design and physical elements
Experiencing the Web Environment are orchestrated to deliver a variety of pleasur-
Distribution by hotels and travel and tourism able experiences. The site demonstrates how a
companies has been particularly affected by the traveler can find peace and tranquility and is able
changes brought about by the internet. Even as to sleep during flight to arrive well rested at des-
travel agencies’ role diminishes, electronic interme- tination, ready for a full day of productive meet-
diaries like Expedia and Priceline are commanding ings. It also shows how couples can enjoy inti-
an impressive and growing share of online spend- mate moments and dine tête-à-tête, while business
ing, and many major chains are making a substan- associates can use the work table and ottoman to
tial share of their sales online.9 In addition to the hold a meeting. The VA case is noteworthy in
changes in the distribution channels and shifting many ways. First, the site is engaging and creates
balance of power, companies are facing a new op- what web designers call “stickiness.” It grabs and
portunity and challenge with regard to the internet. holds attention and invites the visitor to explore
Many companies have realized that merely using the site. Second, the site does not simply act as a
the internet for brand awareness is a waste of re- booking agent but aims to faithfully convey what
sources and an underexploitation of the power of the VA experience is all about. In this sense, the
site is consistent with the actual experience.
9
cyberatlas.internet.com, loc. cit.; imediaconnection.com, We propose that an important area for fur-
loc. cit.; and Carroll and Siguaw, loc. cit. ther development in best practices for the lodg-
ous cues to the visitor about the variety of plea- to report on various emotions they may have felt
sures that awaits guests at this resort. First, the as they were visiting the seven websites and to
home page welcomes visitors with the headline, indicate their subsequent intent to return to the
“It’s all about the fun!,” against the background website and make a purchase. We found that
of a night scene of bars and restaurants and a three affects were reliable predictors of custom-
daytime scene of a skier in action. On the Carni- ers’ intent to return to the website, as well as to
val site, by contrast, the visitor is greeted with a stay at the hotel in the future: namely, the degree
picture of a ship at sea accompanied by links to of enthusiasm they had felt as they were visiting
other pages on the site. Second, when clicking the site, the sense of pride that the website could
through the Tremblant site the visitor sees vari- evoke in them, and (as one might expect) the
ous images that are obviously chosen to convey intensity of their frustration in using the website.
not only the beauty of the scenery (as many other We are now working to quantify the contribu-
resorts and cruise sites do) but the sensory plea- tion that specific objective web-design guidelines
sure of cold snow, the exhilaration of skiing down make in the creation of these pleasurable and less
the slopes, warming up by the fireplace, and the pleasurable experiences and to the customers’
social pleasure of friends and families sharing overall reaction to the website. We believe that
good times. Beyond the home page, helpful links such knowledge can be a foundation for the de-
provide the visitor with information on accom- velopment of best practices that enable players
modations, directions to get there, what to see in the lodging industry to capitalize on the pen-
and do while on the premises, and what to ex- etration of electronic distribution, while preserv-
pect—a section replete with information about ing the human qualities that are the core appeal
local history, customs, and knowledge. The of the hospitality and tourism industries.
Tremblant site illustrates that from an experience- In conclusion, we have proposed two avenues
marketing perspective, physical elements and op- for the future development of best practices:
erating policies are secondary. What matters, (1) practices that could help establish systematic and
beyond the breathtaking scenery or impressive reliable linkages between objective hotel attributes
lobby, may be the pleasures and reactions that and the pleasurable experiences designed to differ-
such features instill in customers and the entiate a hotel or a chain in the customer’s mind,
marketer’s ability to invoke those pleasures on and (2) other practices that could harness the power
the website and to convey them in anticipation of the internet and other information technologies
of the actual experience. to better set the stage for such experiences. We
The second relevant facet of the results per- believe that these two avenues can set the stage
tains to the relationship between the various for a future in which the art and the science of
qualities of customers’ experience and their re- hospitality go hand in hand for higher return on
sponses to the web visit. We asked respondents investment for customers and hoteliers alike. ■