Prague University of Economics and Business

Master’s thesis

2024 Bc. Jan Zvoníček

 Prague University of Economics and Business
Faculty of International Relations
Study programme: International Trade

Thesis topic:

Customer experience audit of retail chains

in the Czech Republic

Author: Bc. Jan Zvoníček

Diploma thesis supervisor: Rafael San José Iglesias, Ph.D.
 Declaration:

I declare that I am the sole author of the thesis entitled “Customer experience
audit of retail chains in the Czech Republic.” I duly marked out all quotations.
The literature and sources used are stated in the attached list of references.

In Prague on XX.XX 2024 Jan Zvoníček

Acknowledgement:
I would like to thank my supervisor for
Table of contents:
TABLE OF CONTENTS: I
ABBREVIATIONS II
TABLE OF FIGURES III
INTRODUCTION 1
1 SERVICES MARKETING 2
1.1 CONCEPT DEFINITION 2
1.2 SERVICE COMPONENTS 4
1.3 SERVICE AS AN ADDED VALUE TO A TANGIBLE PRODUCT 6
1.3.1 Core and Supporting Service 7
2 CUSTOMER EXPERIENCE (CX) 9
2.1 CUSTOMER CHYBA! ZÁLOŽKA NENÍ DEFINOVÁNA.
2.2 CONSUMER DECISION-MAKING PROCESS 9
2.3 DEFINITION OF THE CONCEPT OF CX 13
3 SERVICESCAPE 19
3.1 STORE LAYOUT 19
3.2 PRODUCT DISPLAY 23
3.3 LIGHTNING 23
3.4 EQUIPMENT 25
3.5 COLORS, SMELLS, MUSIC CHYBA! ZÁLOŽKA NENÍ DEFINOVÁNA.
3.6 DEVICES 25
4 AFTER-SALES SERVICE AS AN ESSENTIAL PART OF CX 26
5 CX MEASUREMENT 27
6 THE FUTURE OF CX 28
7 TOOLS TO IMPROVE CX IN BRICK-AND-MORTAR STORES 29
8 INTRODUCTION OF RETAIL CHAINS 32
8.1 ALBERT ČESKÁ REPUBLIKA, S.R.O. 32
8.2 TESCO STORES ČR, A.S. 33
9 RESEARCH METHODOLOGY 34
9.1 DEFINING THE AIM AND RESEARCH HYPOTHESES 34
9.2 CX AUDIT 34
9.3 MYSTERY SHOPPING 34
9.4 EXPERT INTERVIEWS 34
10 OWN RESEARCH 34
10.1 CX AUDIT EVALUATION 34
10.2 MYSTERY SHOPPING EVALUATION 34
10.3 EXPERT INTERVIEWS EVALUATION 34
10.4 COMPARISON OF SELECTED RETAIL STORES 34
11 EVALUATION OF RESEARCH HYPOTHESES AND OBJECTIVES OF THE WORK 34
12 SUGGESTIONS FOR IMPROVEMENT AND RECOMMENDATION 34
CONCLUSION 34
13 PROQUEST: THE EXPERIENCE ECONOMY: WORK IS THEATRE & EVERY BUSINESS A
STAGE 35

I
Abbreviations

II
Table of Figures

III
Introduction

60 stránek a odevzdání v 26. dubna 2024

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1 Services Marketing
xxxxx
1.1 Concept Definition
Businesses across diverse sectors provide diverse kinds of services to their customers.
Consumers make use of them every day. For some organisations, like airlines, healthcare
providers, or education, service constitutes most of what they can provide consumers. For the
manufacturers of products and retailers marketing with washing machines, food, and
computers, there might be less importance put on the notion of the service as what they offer is
a tangible product. Nonetheless, services such as maintenance, a complaint-handling
department, user instructions, warranty, customer support, upgrades, customisations and many
other types of services are still attached to this tangible product (Kasper, van Helsdingen, and
Gabbott, 2006, p. 55; Mudie and Pirrie, 2011, p. 1).

The primary function of modern retail is centred around selling consumer goods, hence tangible
products. However, the service aspect is becoming significantly more critical as a way of
differentiating from the competition beyond the simple exchange of goods. Thus, retail stores
convey some level of service as part of their offerings. This includes, for example, customer
service, assistance from the staff, payment processing, product information, community
engagement programs, waste reduction programs, self-scanning, customer loyalty programs,
extended opening hours, gift wrapping services, exchange and return policies as well as in-store
events, among many others. In fact, most of the products offered in stores can be easily found
or substituted elsewhere, so the distinctive feature and the competitive advantage lie in the
services provided. These also constitute essential elements of the overall customers’ retail
experience.

Let us now define what exactly is meant by the term ‘service’. A service is, according to Kasper,
van Helsdingen, and Gabbott (2006, p. 57), an activity, an effort or a process which is
intangible, and it is executed by a so-called ‘service provider’, often in close contact with the
customer, aiming to meet their needs and to satisfy their demands. Service does not always
incorporate the transferring of tangible goods; on the other hand, it is about delivering and
transferring a specific piece of information, providing a sort of skill and expertise or labour, or
presenting a solution to a problem leading to a peculiar experience for the customer.

2
Fabien (2017, p. 20) defines the term ‘service marketing’ as an integral function of a company
which comprises strategies and activities with the goal of creating, promoting, and delivering
value to their clients in such a way that the service provider, shareholders, customers, and all
the other stakeholders acquire tangible benefits out of their interactions and this, in a durable
way.

Let us disintegrate some of the elements from the definition above. By ‘an integral function’, it
means that services marketing strategies should be developed jointly with the contact personnel
management as well as the service operations management, given the crucial role for overall
customer satisfaction.

If a company wants to ‘create value’, it must first understand the value desired by the customer,
then combine it with a certain level of price and optimal accessibility, and it will offer a service
producing substantial added value for the customers.

Once created, value must be ‘promoted’ by the marketing strategies in order to assure the
purchasers that the products and services provided add perceived value for them; for instance,
that can be a case of guarantees offered to clients. The goal is to make a promise to clients that
the products and services are worth purchasing and experiencing.

To ‘deliver value’ is to manage customer experience by implementing strategies, such as

designing service delivery processes, managing contact personnel, and selecting ambient
factors at the point of service.

‘Acquiring tangible benefits from their interactions’ is the goal of all exchanges; all participants
seek to obtain the maximum out of their interactions. Ultimately, profit-oriented enterprises
(retail chains) will aim for profit maximisation, long-term growth and sustainability, and good
business relationships, among many others; shareholders, for their part, will seek to maximise
the return on their investments. Finally, the customer will want their expectations to be met and
will seek to maintain their interactions with the company (e.g., retailer) as long as the latter
meets their expectations.

In the short run, the marketing department goal is to maximise customer’s first experience with
the company. The company must then implement retention strategies to ensure long-term
customer satisfaction and loyalty. The retailer should primarily focus on the retention of its
existing client base rather than on continuing acquisitions of new customers, as the last-

3
mentioned strategy is pricier than taking care of the existing base, and typically, the new
customers yield much less than the present clientele – that could summarise the last component
‘in a durable way’ of the definition (Fabien, 2017, p. 21–23).

To sum it up, while the fundamental function of retail is the sale of products, the broader retail
experience incorporates a blend of tangible goods and diverse services aimed at increasing
customer satisfaction, which plays a pivotal role in shaping consumer preferences as well as
fostering brand loyalty.

1.2 Service Components

Services differ from products extensively. Conversely, both services and products are
interconnected with each other. A service is conditioned by purchasing, or at least taking an
interest in, a product. In the same manner, several services are only connected or provided with
a specific product, such as customer assistance, product and nutritional information, product
bundling, loyalty programmes, etc. This is something that must be considered when analysing
service components. Let us define some characteristics of services.

The first distinctive feature is called ‘intangibility’. A product can be touched, smelled, seen,
felt, or heard before being purchased; that is not the same with services as they constitute an
activity/performance and not a thing. It is quite often hard for customers to distinguish the
elements of this activity, which is why the service providers aid themselves by making their
service as tangible as possible. Let us have an example to understand it better: the outcome of
a service is, in our case, the customer experience experienced by a specific customer and it is
Figure 1: Inputs-output relationship based on a set of tangible
resources deployed by the
company (i.e., in a supermarket,
the interaction with several staff
members, either for seeking help
or ordering at a deli counter, the
range of products offered, their
quality, or the atmosphere created
by the interior design of the store
Source: Original work based on Fabien (2017, p. 16)
are the tangible elements shaping
the well-being, unwinding and pleasure of the visitors). The resources put in place can be called
the ‘inputs’, while the resultant (i.e., the well-being, pleasure, delight, unwinding) is named the

4
‘output’. Figure 1 provides a better idea of their inter-connected relationship. Otherwise stated,
the retailer decides, a priori, about the type of experience (output) that they want to provide
their clients and, a posteriori, the intrants to be arranged to generate the desired experience
(Kasper, van Helsdingen, and Gabbott 2006, p. 58; Fabien, 2017, p. 15, 16; N. Torres and
Zhang, 2022, p. 13, 14).

Another characteristic of services is their ‘inseparability’. Generally speaking, in order for a

service to be produced, there is a need for the direct participation of the customer. Also, services
are often produced and consumed at the same time, unlike products, which are produced, stored,
sold, and consumed distinctively and independently. For instance, in a supermarket, clients
actively participate in the service experience; they navigate the aisles, select products, and
choose according to their needs. The entire shopping process requires customer presence. The
same is true with the interaction with the staff; when a prospective purchaser orders some
products at the deli counter or asks for assistance, there is a need for their direct participation,
and the service is produced (customer-staff interactions) and consumed (the customer
experience) simultaneously. An essential factor lies in the careful selection and thorough
training of frontline staff, ensuring the provision of a high-quality customer experience (Mudie
and Pirrie, 2011, p. 4).

During the process of tangible product fabrication, the inputs (raw materials, machinery, staff
work, process of packaging) are standardised so that the outputs (the final products) are almost
identical or bear identical qualities. During the service provision in real-time with the
participation of the contact personnel, the customer, and sometimes with the support of a
computerised information system (for example, a scanner, electronic price tags, a weighing
machine), a lack of attention from the employee, a breakdown of the computerised system, or
also uncontrollable other elements (such as weather unforeseeability, electricity breakdowns,
etc.) are the sources causing deviations in the quality of the service delivery. This is the fourth
characteristic, which is called ‘inconsistency’; the service provision lacks total homogeneity.
The company needs to foresee the sources of potential problems and try to avoid them, rapidly
correct the existing errors, and recompense the harmed client. Given that the people are
involved in the service delivery, it goes without saying that the service cannot be performed
homogenously as we do not operate as reliably and constantly as machines do. Nonetheless,
many chains introduce standard operating procedures (i.e., code of conduct, guidelines for
communication) and training to combat heterogeneity and to ensure that everyone receives the
equivalent quality of service (Fabien, 2017, p. 16, 17).

5
The last characteristic of services to be mentioned is their ‘perishability’. Bearing in mind the
intangibility of services, they cannot be stored, warehoused, or reused; therefore, it is hard to
synchronise supply and demand. Retail stores have to face fluctuations in demand or in their
capacity; hence, these variations can profoundly influence the quality of service delivery. The
service provider needs to be ready when a client is willing to be served; just a slight fault at the
beginning of service provision may have an impact on the rest of their interaction with the
company. The concept of time, i.e., the waiting time, service duration time, and after-sales
service response time, plays a crucial role in service management. The challenge lies in being
always ready to serve a customer, no matter the time of day, the day of the week, the week of
the month, or the month of the year, and at the same time optimising its organisational resources.
For example, a particular supermarket has 10 checkouts available to assist its clients, but the
checkouts rely on staff presence in order to be able to assist them, so if on a particular day, there
are only 5 members of personnel present who are eligible to operate these checkout counters,
the other 5 perished and cannot be used to check out potential customers (Kasper, van
Helsdingen, and Gabbott 2006, p. 60; Mudie and Pirrie, 2011, p. 5).

In conclusion, four characteristics commonly associated with a service were mentioned:

intangibility, inseparability, inconsistency, and perishability. The interconnection between a
product and a service must be considered as we always sell goods and services conjointly with
each other to a certain extent, and the interface between them is not always so evident.

1.3 Service as an added value to a tangible product

The retail companies selling fast-moving consumer goods ameliorate their competitive
advantage by offering additional services before the actual purchase (i.e., consulting services,
product recommendations, and reviews, store loyalty programmes, personalised discounts,
coupons, etc.) and after the transaction (i.e., delivery, warranties, digital receipts, or product
usage tips). Each retailer offers several services to its customers. The totality of them can be
named a ‘global offer’, also called an ‘augmented service’. It must be borne in mind that not
every service has the same status or significance for the customers as each of them assigns
varying weight to different kinds of services. Hence, each of the services provided contributes
to a different extent to the overall customer experience.

6
1.3.1 Core and Supporting Service

Core and supporting (or additional) services constitute the global offer of a particular enterprise.
The core service is the fundamental purpose for the existence of a business. It answers the
question: for what purpose was my company established, and what is its primary and core
mission? In the case of a food retailer, the core service can be defined as the provision of a
convenient and easily accessible retail environment where customers can purchase a diverse
selection of food, non-food, and groceries. In today’s retail market, numerous providers offer
clients the same core service. In order to differentiate themselves and attract customers, the
retailer needs to implement a series of supporting services. The consumer is going to search for
a provider (retailer in this case) that will enhance their customer experience and increase the
perceived added value, defined as a subjective worth that a service provides to a customer
(Kasper, van Helsdingen, and Gabbott, 2006, p. 62).

The supporting services are tied to the core service, and they complement it. Such an enlarged
offer responds to customers' various needs while optimising the company's human, physical,
and technological resources. And so, not only can the customer make use of the firm's core
service, but they can also utilise many other services provided to them. Consider the food retail
store, online shopping and delivery, Click & Collect service, customer loyalty programmes,
extended opening hours, self-scanning checkout system, financial services, telecommunication
services, recipe suggestions and cooking tips, product sampling, digital receipts, a restaurant,
additional stores on the premises of the retail area, a petrol station, community initiatives,
clothing, lockers, toilets, additional warranty, 24/7 customer service and many others creating
a comprehensive and customer-centric shopping environment. When inventing these additional
services that cover the core one, retailers must address multiple requirements, as the services
should not be implemented without a particular reason. Creating new supporting services might,
for example, be prompted by the new identification of customers' needs, the quest for resource
optimisation, the threat of one or more competitors, or the search for synergy (Fabien, 2017, p.
94–96).

Augmented services can be defined as a summation of the core service and the supporting
services. The core service is usually intangible, and the additional (supporting) services function
to tangibilise the intangible core service. For example, one cannot purchase groceries from a
supermarket without paying for them either at the checkout, through a self-checkout, by phone,

7
or no matter how, so some degree of tangibility is always needed to produce the service (i.e.,
sell the goods) (Mudie and Pirrie 2011, p. 9, 10).

8
2 Customer Experience (CX)
Xxxxxx v ysvětlit term customer
https://www.google.cz/books/edition/Customer_Service_Marketing/N4qVEAAAQBAJ?hl=e
n&gbpv=1
2.1 Consumer decision-making process
Consumers are confronted with different buying situations depending on whether it is an initial
or repeat purchase. If a consumer wishes to buy a new washing machine they have never bought
before, they are undergoing a high perceived risk as everything is new and relatively unknown.
They do not know where exactly to buy it, which brands of machines are available on the
market, what functions a good washing machine should have, etc. The difference is when it
concerns a repeat purchase, for example, a box of rice. Consumers can draw on their past service
encounter experiences (previous purchases), which play a role in diminishing the perceived risk
from buying this product as they already have some experience with the product (Kasper, van
Helsdingen, and Gabbott, 2006, p. 102).

The consumer should be the focus of all retailers, and they should scrutinise their way of
deciding and making buying decisions. The components of the consumer decision-making
process (or consumer shopping and purchasing model, as called by Lusch, Dunne, and Carver
(2011, p. 100) vary slightly from author to author, so a streamlined version will be introduced.

In this model, there are six steps or

Figure 2: Consumer decision-making process
stages, according to Lusch,
Dunne, and Carver (2011, p. 101)
(see Figure 2 for a scheme). They
are called stepwise stimulus,
problem recognition, active
information gathering (search),
evaluation of alternatives,
purchase, and post-purchase
evaluation. Let them analyse one
by one thoroughly.

Source: Original work based on Lusch, Dunne and Carver (2011, p. A stimulus refers to a physical or
101)
sensory input that causes a
reaction or response. It includes a cue or a drive. A cue is external to the individual and pertains

9
to anything in the environment that provokes a specific response. For instance, various
advertisements, point-of-sale and point-of-purchase displays, coupons, etc., can be called cues.
Word-of-mouth, which the retailer cannot control, also belongs to this category. On the other
hand, a drive is internal to the individual and serves as a driving factor guiding behaviour.
Drives are based on biological requirements and fundamental needs for survival – water, food,
a place to live, and security and desires. For example, being hungry or thirsty and staying warm
in the winter are all examples of drives. People can be influenced by both cues and drives.
Imagine a person in a supermarket shopping and spotting a display for a discounted price of a
menu of a meal with a beverage (cue) and at the same time being hungry (drive).

The stimuli lead to problem recognition. It means that an individual is aware of a problem,
through the above-mentioned cues and/or drives, that can be satisfied or resolved by means of
a purchase. For instance, if you have just felt rumbling in your stomach, that would be a stimulus
(drive as internal to the individual), and the person realises that they are hungry and should
buy/eat something to satisfy their actual discomfort. Not all problems generate the same weight
of problem-solving activity. If a person realises that they are hungry (recognition of a problem)
and, in the meantime, they have a final exam ahead they need to pass (recognition of a problem),
they will choose the kinds of problems to be solved first according to their level of importance.
Also, it depends on the degree of difference between the consumer’s desired and actual states.
Take, as an example, a cue in the form of an advertisement for a discounted pasta. A person
realises that they might be lacking pasta. If they find out that there is no pasta at all stored at
home and they would like to make pasta for dinner tonight, the problem is really urgent, and
that would drive the consumer to a supermarket to buy the provisions, but if they see that they
have still five packages of pasta at home, the recognition of the problem would be of less
urgency, and the problem solving can be postponed into the unknown time in the future.

The two successive stages (i.e., active information gathering (search) and evaluating
alternatives) are concerned with problem-solving. After an individual recognises a problem to
be satisfied, they start actively searching for information about existing possibilities to fulfil
their needs. They are going to resort to internal and external sources of information. Internal
sources are specific to the individual and grounded in past experience with the service provider
or a particular product. On the other hand, external sources of information stem from company
websites, social media, advertising, online reviews and ratings, consumer reports and
publications, in-store displays, and word-of-mouth, all playing a crucial role in making
informed choices to discover all necessary information about their desired service or product.

10
As it is commonly challenging to judge the quality of a service before its delivery, word-of-
mouth plays a predominant role in gathering information. Happy customers are the best
ambassadors, but dissatisfied ones can influence the perceptions of other potential clients.

Clients are then faced with the second part of the problem-solving stage – the evaluation of
alternatives. After the necessary information, regarded as important by the consumer, is
gathered, the potential client can now enumerate a list of service provider brands (retail chains)
that are taken into account in the follow-up process of their decision-making process. These
retail chains are judged, according to the individual, as being able to live to their expectations.
The first step is outlying a set of attributes based on which the client makes their purchase
decision. These refer to the characteristics of the store and its services and products, namely the
distance of the store from the individual’s home, transportation options to the store, parking
convenience, store hours, friendliness of the staff, product price and quality, customer service,
paying options, checkout process, sustainability practices, aesthetics and store layout,
accessibility, supporting services offered, return policy etc. The second step is to set a
manageable number of attributes to be taken into consideration so as not to have myriads of
attributes to consider. The final step is about comparing the core attributes of the remaining
choices. Here, individuals compare the actual prices of the products wanting to buy and verify
the store hours, transportation times, and other specific information. Retailers should here
become attentive to the sources of information utilised by the to-be consumers and make sure
that the retailer’s name appears in the information resource used by its target customers.

In accordance with the information collected and assessed, the customer decides whether to
make a purchase and which retailer should be opted for. A possible result from the previous
step might be to delay the purchase and not buy anything, but this information might be helpful
in the future in future shopping – the perceived risk will be reduced as more information is
already collected and assessed. The actual time of purchase significantly contributes to whether
a customer makes the purchase or not, as it may hinder the preceding decision; for example, a
customer opts for a particular retailer to do their shopping there, but going there by car, they
realise there is not any single parking spot available, so they cease their activity, or they arrive
in store and discover that the price of the predefined product for purchase is not accurate or bear
more unanticipated conditions and costs that the shopper cannot and does not want to comply
with. The actual moment of purchase is also vital for supplementary purchases or to buy add-
ons; responsive and courteous staff and information provided in-store can assist in moving
forward. In-store promotions and design layout both lead to the right incentive for purchasing

11
and elevate the customer experience from the shopping journey. Ultimately, one should not
forget about the buying transaction as it is the last impression that a customer can form out of
that buying transaction. Retailers should also put a strong emphasis on ease of purchase, lack
of queues, variety of payment methods, interaction with the personnel, and the way of handling
comments and complaints, as these can leave a lasting impact (Cox and Brittain, 2004, p. 80;
Lusch, Dunne, and Carver, 2011, p. 104; Fabien, 2017, p. 59).

The product is acquired not for its intrinsic value but for its capacity to fulfil a specific need;
for instance, in large hypermarkets, where electronics are still sold, a vacuum cleaner is not
bought because it is a vacuum cleaner but because the customer can vacuum its floor and tidy
up. It is essential to know why customers buy the products, for which purpose, for satisfying
which needs, etc. If a customer returns in the following days and is unhappy because the product
does not meet their expectations as the hover’s suction power is low. Having known that before,
the retailer could have offered a better product to meet their customer’s needs. A little
questioning and guidance would be recommended as to offer the best product to meet its
customer’s expectations. Once more, meeting customers' needs is of utmost importance. Selling
without retaining the customer holds minimal value as then the word-of-mouth of discontent
customers spreads quicker than even realised by the retailer. When there is no possibility of
questioning customers in this way, surveys should be realised on a regular basis to measure
customer satisfaction with the store and the products purchased (Cox and Brittain, 2004, p. 80).

The final step is the post-purchase evaluation. One needs to consider that the purchase process
does not end with the actual purchase of a product or service use. Retailers need to ensure that
the provided service and/or buying a product meets customers' needs and that their problems
have been solved. The most critical moment takes place within the first hours and days after the
transaction, where the buyer evaluates the quality of the service and/or the product and
compares what they experienced (actual performance) versus their expectations (expected
performance) vis-à-vis the service and the product. The gap between these performances and
the quality of the products determines the level of customer satisfaction. One important
psychological phenomenon may appear either during the moment of the pre-purchase or soon
after, and that is called post-purchase dissonance. It is defined as a psychological discomfort
that a consumer may experience by wondering whether the correct choice was made or not
(Pandey and Jamwal, 2015). For instance, an individual may worry about the cost of the
purchase, whether it was a wise decision to purchase, whether better alternatives were available,
or the external opinions of other people, which can lead to dissonance. Retailers should take

12
several measures to lessen their customers’ state of unwell. Clear communication, customer
reviews, popularity of a service or product, transparent and liberal return policies, post-purchase
communication, customer support, or extended guarantees can be provided. If post-purchase
resentment (i.e., a customer becomes dissatisfied either with the service, product, or retailer,
leading to the regret of a purchase made (Lusch, Dunne, and Carver, 2011, p. 105) arises, the
retailer should promptly intervene as if not resolved properly, it can have a lasting impact on
the retailer’s bottom line. If the retailer is initiative-taking and acts quickly, the resentment can
be overcome. By attentively addressing customer complaints and implementing proactive
policies, retailers are more likely to retain a higher number of customers in case of any setbacks
(Cox and Brittain 2004, p. 81; Kasper, van Helsdingen, and Gabbott 2006, p. 104, 105; Lusch,
Dunne, and Carver, 2011, p. 105; Fabien 2017, p. 60).

2.2 Definition of the concept of CX

Before defining the concept of CX more deeply, it is advisable to begin by explaining what the
terms ‘customer’ and ‘experience’ mean. The term ‘customer’ was described in the subchapter
2.1. Pine and Gilmore (1999, p. 11), in their book called ‘The Experience Economy: Work Is
Theater & Every Business a Stage’, argue that “an experience occurs whenever a company
intentionally uses services as the stage and goods as props to engage an individual.” The
distinctive feature of an experience is, according to the authors, memorability. That signifies
that a particular experience could be recollected in the future.

CX could then be summarised as a set of customer interactions and the sum of their perceptions
and feelings by which they can come into contact with a specific company on different
occasions and from pre-, during, and post-consumption (Rageh Ismail et al. 2011, p. 208;
Fabien, 2017, p. 48; IBM, 2024). It is their perception of the whole experience with a retailer
from the very first moment until they decide to purchase anew or cease to buy from this retailer
again (Kihlström, 2022, p. 8).

The consumption of a particular service or a product comprises a utilitarian dimension as well

as an experiential dimension. The utility is the reason why the client buys a product or a service.
The experiential dimension includes all the sensations and emotions, either positive or negative,
arising from all the interactions with a company (Fabien, 2017, p. 17).

Interactions occur during a specific period of time (i.e., calling a store to inquire about opening
times, asking an employee for a price check, waiting in a queue for checking out); nonetheless,

13
sensations and emotions accumulate throughout the duration of an experience with a particular
company, for instance, a to-be customer wants to verify the opening times of a particular store
they want to do the shopping in throughout the mobile app. They encounter many bugs using
the app, so they cannot verify the opening times but have to call there, for example, or use the
Google browser to check the opening times. This experience will indeed have some kind of an
impact on the customer’s perception during subsequent interactions (Fabien, 2017, p. 17).

A company wanting to maximise the CX and develop a lasting, bonding, and profitable business
relationship must create, promote, and deliver a value proposition superior to its competitors
(for example, by introducing a set of differentiating supporting services). The value proposition,
in terms of quality of service, must cover all the interactions happening before, during and after
the customer’s visit. Figures Figure 3Figure 5Figure 4 clearly illustrate the 14 dimensions of
CX developed by Mr. Yves Filion, M.B.A. and Louis Fabien (2017, p. 18, 19).

In the pre-purchase phase (Figure 3), meaning before the customer’s visit, the one is
significantly searching for information on products and services offered by consulting the
Figure 3: Pre-purchase customer experience dimensions company’s website, mobile
applications and social media.
Some of them would like to know
the experience of other customers
before making a purchase, so they
might consult reference websites
such as TripAdvisor or reviews
on Google Maps or Seznam.cz to
get opinions about a particular
company or store beforehand.
The future customer may e-mail
Source: Original work based on Fabien (2017, p. 18) or phone the company to obtain
more specific information. People
not comfortable with technologies might go to the store or service point to speak directly on-
site with staff (with or without a prior appointment). It is fundamental for the company to
provide concise, up-to-date, relevant, and easy-to-find information throughout every channel
chosen by the customer (Fabien, 2017, p. 19, 20).

14
When a customer decides to visit a certain service point (a supermarket of a specific retail
company), six CX dimensions must be carefully considered and planned (Figure 5). The first
one, accessibility, encapsulates opening times when the store is open for the customers as well
as the ease of travel for them to the store. Ambiance refers to all the sensory stimuli deployed
as well as the store design so as the customer shopping journey be memorable, unique, and

Figure 5: Purchase customer experience dimensions

friendly. Contact staff must be
well-trained and have the
technical, professional, relational,
and commercial skills to facilitate
the interaction with the customer.
Retailers use diverse technology
(price check scanners, self-
checkouts, electronic price tags)
and other equipment (a scanner, a
cart, a trolley) to ease the shopping
process for the customer and make
it more user-friendly. The pricing
Source: Original work based on Fabien (2017, p. 18) setup must be comprehensible to
all customers and clearly
displayed next to each differentiated set of products. The last dimension of the purchase stage
is the service process. This includes all the processes within a particular service, e.g., arriving
at the store, meeting with staff, completing a form, waiting time at the checkout, the checkout
time, etc. For each of the services offered, the company must design a so-called ‘experience
Figure 4: After-purchase customer experience dimensions map’, a tool used to graphically
represent service delivery
processes, namely all the
interactions (Fabien, 2017, p. 20,
153).

After the client’s visit (Figure 4),

they might re-contact the retailer to
express satisfaction or
dissatisfaction with the service
Source: Original work based on Fabien (2017, p. 19)
provided or the product purchased.

15
The company needs to establish customer care service support where potential problems are
promptly resolved and, if necessary, to compensate the customer for the inconvenience caused.
Successful companies implement a CX monitoring system by contacting the customers shortly
after the transaction.

As it stems from the definition, CX is not a single interaction lived and experienced by a
particular customer at one time, but at a specific time, a customer can get in touch with the same
company on multiple interactions (see FiguresFigure 3Figure 5Figure 4), and the synergy of
all of them is what makes the CX. For instance, a customer wanting to buy a new hoover can
call a specific store to inquire about the opening times and the availability of the product, then
the arrival to the store for the actual visit or fill up a complaint form to claim a refund on the
purchased product are all the interactions which may arise (Fabien, 2017, p. 48). According to
Fabien (2017, p. 49), five types of interactions between a customer and a company can be
identified:

• Interactions with the contact staff at the point of sales (e.g., asking for stock information
in the shop);

• interactions with the contact staff remotely (e.g., contacting customer service by phone
or by mail);

• interactions with the service equipment available to the customers (for instance, a
shopping basket, a trolley);

• interactions with the service technologies (e.g., self-service checkouts, self-scanning,

checking the price, electronic price tags);

• interactions with ambiance elements in the store and in the vicinity of the store (e.g.,
colours, staff uniforms, light, furniture etc.).

Managing the service well and improving the CX means managing every single interaction
lived by all customers, both existing and potential, day by day and in each retailer’s subsidiary.

It must be noted that not all interactions have the same value on the customer’s overall CX;
some are of greater significance than others, and the relevance and importance differ from client
to client. Moments of truth are the pivotal interactions in a customer journey with the company
(at all the stages of their purchasing process) that significantly shape the overall CX and also

16
play a critical role in determining loyalty and customer satisfaction. Fail a moment of truth
could have a major consequence. For instance, a customer will not be overly offended by the
dirtiness of a parking lot of the visited retail store; on the other hand, if they do not find an
advertised product in stock, deal with unpleasant staff, or have a problem with the self-service
scanner resulting in having to scan all the products again, this would necessarily lead to a
negative experience (Fabien, 2017, p. 50).

The secret is not to have myriads of products on shelves, but living a memorable experience is
what customers value more than material possessions. CX is also frequently connected to the
senses of a human being – taste, look, smell, sound, feeling, touch, etc. (N. Torres and Zhang,
2022, p. 15). One can ask themselves: What does a visit to Tesco hypermarket taste, look, smell,
sound, feel and touch like? The responses could be as follows: Most people could remember
the smell of the freshly baked pastry, and others could recall the feeling of being cramped with
other people while shopping in the narrow aisles. Some people could think of rotten meat
bought at a particular store which spoiled their evening dinner; others, on the other hand, can
recollect the niceness of the staff.

Kasper, van Helsdingen, and Gabbott (2006, p. 63), Lemke, Clark, and Wilson (2010) as well
as Meyer and Schwager (2007), and many other authors concur that subjectiveness is a feature
of CX. It involves the opinions of each individual, and from nature, each of the customers comes
from a different background, country, level of education, level of expectations from the
customer journey, etc., so the overall CX may vary.

Nowadays, enhancing customer experience is seen as a lucrative means of delivering value to

customers. In the evolving landscape of the 21st century, with a growing number of individuals
dedicated to their work, there is a rising demand for experiences. This is particularly evident
among highly educated professionals with busy careers who express a significant desire for
unexpected positive encounters (Kasper, van Helsdingen, and Gabbott 2006, p. 63). + v této
knize píšoui I o satisfaction a expectations. Moreover, consumers are confronted with an
unprecedented array of choices regarding products, channels, and places through which to make
purchases. For this reason, it is highly desirable to prioritize CX and aim to differentiate from
the competition by delivering added value in the form of a superior experience for the customers
(Meyer and Schwager, 2007).

17
During the COVID-19 crisis, retailers had to alter how they served their customers to respect
health measures, safety, and security. During moments of crisis, addressing customer needs
with empathy, care, concern, and a genuine connection becomes paramount and can, in the
aftermath, contribute to the strengthening of the retailer’s perception in the customer’s eyes,
hence improving the overall CX (McKinsey & Company, 2022).

A positive customer experience fosters stronger customer loyalty, boosts retention rates, and
facilitates increased and more extensive sales. Additionally, it plays a pivotal role in driving
business growth through the acquisition of new customers, driven by word-of-mouth
recommendations and online advocacy from existing satisfied customers on behalf of the brand
(IBM, 2024). Moreover, 73 % per cent of all respondents, in a PwC report called Experience is
everything: Here’s how to get it right, indicated that CX plays a vital role in their buying
decisions (Puthiyamadam and Reyes, 2018, p. 5).

18
3 Servicescape
3.1 Physical and Temporal Accessibility
The services offered must be available to customers at the place and time which best suits them.
There are two distinguished types of accessibility. The first one – physical accessibility – refers
to the ease of reaching and getting out of the retailer’s site. Hence, it deals with the location
where the service is delivered, in our case, the location of the store. The second one – temporal
accessibility – addresses the availability of services during a certain period of time (Fabien,
2017, p. 134). Subchapters 3.1.1 and 3.1.2 examine them in more detail.

3.1.1 Physical Accessibility

There exist 4 modes of physical accessibility allowing access to the services offered – when the
customer goes to the service point, when the service provider travels to the client, when the
service is accessible remotely, or a hybrid mode. Most modern retail stores take advantage of
the hybrid mode, combining the customer going to the store (in-store shopping) or making use
of the service remotely (online shopping). This thesis will focus solely on the first mode when
the customer needs to go to the service point to obtain the desired services (Fabien, 2017, p.
134).

Figure 6: Tesco Extra totem pole
Source: Google (2024b)
Most stores are located in the city centres, in the suburbs, inside
shopping centres, alongside ring roads or major motorways and
are of different sizes. Retailers must evaluate the potential traffic
flow and ensure that potential customers can easily spot and
navigate the store site. Locations that are located on the right-
hand side tend to be more accessible for them to turn to and get
out of there without having to cross many lanes or traffic (Levy,
A. Weitz, and Grewal, 2019, p. 207). The ease of getting to the
location also holds for pedestrians – well-established sidewalks
and signage must be provided so that they can safely enter the
store location. When thinking about location, the retailer needs
to evaluate it in terms of the ease of accessibility for customers
seeking convenience – is the store connected to a public
transportation system and/or is the GPS location of the store set
up in the mobile maps applications and retailer’s official website

19
to be easily found? Visibility is another feature to consider. According to Levy, A. Weitz, and
Grewal (2019, p. 209), it refers to the ability of customers to see the store from the street. The
fascia (retail name and logo above a shop entrance) or totem pole helps to identify the store and
attract the customers to visit it or communicate more information about the opening times or
availability of some supporting services (Cox and Brittain 2004, p. 185). The store or storefront
should also be visible from the major vehicular and pedestrian routes and should bear the
retailer’s name. Figures Figure 6 Figure 7 show two types of
Figure 7: Tesco Extra entry board
totems used by Tesco in the United Kingdom. The totem shown II
in Figure 6 is used for big hypermarket formats and is visible
from far away, attracting customers' attention. Figure 7 is only
visible when one approaches the store and bears more detailed
information about opening times and information about the
supporting services (e.g., petrol station, pharmacy, optician,
etc.) available on the spot.

Many supermarkets and hypermarkets not located inside the

very city centres have parking at their disposal. If there are not
enough places or they are too far from the actual entrance, this
will discourage potential buyers from visiting this location
regularly. On the other hand, too many parking spaces being
unoccupied most of the time might be a sign that the store is
unpopular. Retailers must observe the possible flow of
customers and the length of a shopping trip at different times
throughout the day, week, and season so that the parking lot
does not get congested. They need to think about a well-
designed parking layout and the appropriate signage to enhance
the ease of navigation as well as keeping the premises as safe as
Source: Google (2024a)
possible, so installing sufficient lighting systems and CCTV
cameras might be a good option to create a secure environment. They also need to ensure a
sufficient number of parking spaces for their employees, people with disabilities, or families
with young children and the disposition of cart return stations throughout the parking premises
so that they do not get scattered in the parking lot.

20
Figure 9: Herbs growing Retailers need to bear in mind
that all the exterior premises
already make the first
impressions on their customers
and cannot focus only on the in-
store appearance. For many of
them, this part is often neglected.
It is then essential to keep the
surroundings clean, safe, and
welcoming for their customers,
Source: Linkedln DOPLNOT and there may be several
possibilities for enhancing CX
Figure 8: Tesco Parking Rules
before customers' actual in-store visits.
Figure 8 shows how the green sections of the
parking facilities can be exploited to benefit
customers and to create a visually appealing
parking environment. Various types of herbs
are grown for the customer’s disposition, and
they can pick them up for free. Informative
signage about parking rules, directions,
special promotions, and events happening in
the store might improve people's overall
awareness. Therefore, regular maintenance
of the store exterior premises (i.e., regular
sweeping, trash removal, and repairs of any
damaged surfaces) is essential. Figure 9
Source: Birt (2023)
shows Tesco Car Park rules informing
customers about the maximum stays of their vehicles as well as safety measurements, which
are put in place and designed spaces for customers with special needs.

The store entrance is another thing which should not be neglected; this should be well-identified
so that customers know where the entrance is. Usually, opening times together with the address
and the store manager’s name should be displayed here as well as other important information.

21
Physical accessibility refers also to the interiors of the store. That will be discussed later in this
section.

3.1.2 Temporal Accessibility

As it was mentioned before, for majority of services, the presence of the customer is required.
Time is a valuable resource as for the customer as well as for the service provider. The
consumption of a service happens at the expense of other types of activities (work, leisure time,
rest etc.). It is crucial to know customer time constraints before serving them (Fabien, 2017, p.
142).

Temporal accessibility will be discussed from two different sides – from a customer's and a
service provider's sides.

Customers have a total of 168 hours a week that they divide among various activities – work,
sleeping, free time, family time and the consumption of products and services. They prefer a
service provider optimising their consumption time. Optimising the temporal accessibility is
for the retailer to be available at the time chosen by the customer, depending on the time that
the customer wishes to devote to the provision of the service (Fabien, 2017, p. 142) This is
managed by the length of opening times so as everybody can do their shopping throughout the
day and be adapted to the customers’ time constraints. Some stores may be open 24 hours for
their customers, or the services may be offered remotely and benefit from maximum temporal
accessibility. There are two features that must be taken into account in terms of temporal
accessibility: waiting time and duration of the service.

Waiting time (in a queue in-store, on the phone) makes the customer uncomfortable as it is
caused by inactivity, and it consumes their time. In any case, this state must be minimised. The
perception of waiting time can be reduced by occupying the customer with various distractions
such as TV screens, digital displays or magazines providing something to focus on when
waiting, using signage to communicate estimated wait times, or training employees to engage
with customers with some casual conversations. All these activities can reduce the perceived
waiting time even if the actual time remains identical. In the first place, retailers should ensure
that there is efficient staffing during peak hours to serve clients and whether they have enough
ways of reducing the actual waiting times, for example, by introducing self-scanning options,
payment by phone, self-checkouts and efficient queue management (Fabien, 2017, p. 143).

22
The duration of the service represents the time that the customer who wished to be served must
devote to complete the shopping experience. Not everybody wants to spend hours doing their
shopping. Retailers must ensure that customers wanting to do their shopping of groceries and
essentials quickly can do so without being distracted and delayed. On the other hand, they
should entertain and attract the attention of those kinds of purchasers who want to spend more
time in the store and do not know exactly what to buy to enhance their shopping experience. It
also depends on the location of the store; convenience stores are designed for a quick and
efficient shopping experience, while hypermarkets could be more suitable for lengthy shoppers
wanting to enjoy their shopping.

The time management of the service provider is centred around the temporal fluctuation of
demand. The resources put in place for a given period make it possible to serve a specific
number of clients. No matter how well-planned and detailed service processes are, unforeseen
events (angry customers, electric breakdown, computer failure, for instance) are common when
working in real-time with the customers, and they slow down the service pace, lengthen the
waiting time as well as the overall service duration. The front employees must be prepared and
well-trained for these circumstances in order to respond quickly and effectively to unforeseen
events (Fabien, 2017, p. 145).

Retailers seek to be efficient with a minimum of resources. The temporal accessibility of

services for the customer is materialised by user-friendly telephone servers, a sufficient number
of lines, available and competent employees at the service point, or a service atmosphere
facilitating the service experience. It is also tempting for the retailers to do some cut-off in terms
of the number of employees available at the store, the number of telephone lines or the surface
area of service space and counters. All this must be done with caution, and it can have an impact
on overall customer satisfaction; the customer waiting for too long or who is asked to spend too
much time to be provided a certain service will certainly be less likely to return (Fabien, 2017,
p. 145, 146).

3.2 Store layout

xxxxx
3.3 Product display

3.4 Atmospherics

23
To provide customers with an appealing and pleasing shopping experience, retailers go beyond
the standard selling of appealing merchandise. They refer to different types of atmospherics
related to the design of an environment by stimulating a person's five senses. Lightning,
Colours, music, scents and flavours in order to immerse the customer into a unique and
enjoyable shopping experience, influencing their emotions and perceptions with the goal of
altering their buying behaviour. By using different types of atmospherics, a client would go
further than just experiencing normal shopping, but it will have a direct effect on enhancing
their overall CX and making their ordinary shopping more memorable. The following
subchapters will detail every element connected to each of the five senses.

3.4.1 Lightning

Lighting plays a significant role in shaping the overall ambiance within the store. The overall
level of intensity of light must be that the purchasers can see the products clearly and the store
radiates a sense of welcoming invitation for entering and wanting to stay inside. If the products
offered are not visible on the shelves, nobody would then buy them. If the lights are used
correctly, they can show the customer the product in an attractive way and encourage him to
buy it. However, lightning is still underestimated by some retailers, and there is not enough
emphasis put on it (Neumann, 2023, p. 38).

The colour of the merchandise can also be affected by lightning in order to highlight it.
Simultaneously, the lighting should ensure precise colour representation of the merchandise as
the products emit slightly different colours when under artificial light in comparison to being
exposed to daylight (Varley, 2001, p. 160).

According to Varley (2001, p. 160), blue light can be used in the beauty care department to
create a hygienic and cool mood. Orange enhances the colour of the bread. Correctly
illuminated bakery products look crunchier and fruit juicier.

Apart from highlighting the desired products, retailers use lightning for mood creation or
capturing feelings that enhance the store’s image, wanting to convey a sense of brightness,
cleanliness and a welcoming environment. Brighter stores are considered clearer and more
comfortable to navigate (Levy, A. Weitz, and Grewal 2019, p. 451, 452; Jesenský et al., 2020,
p. 348).

Increasingly, businesses are aware of the fact that lightning contributes to a large extent to
energy waste and cost, so energy-efficient systems are recommended to be introduced, for

24
example, using LED technology whose purchase price is less expensive (Lusch, Dunne, and
Carver, 2011, p. 507).

It must be acknowledged that there is no lighting that evokes the same positive emotions in all
target groups. It turns out that each target group has its own lighting requirements. It has to be
highlighted that natural light has a positive impact on the atmosphere, staff, customers and also
sales. If viable, retailers should make use of natural light as much as possible as it has more
beneficial effects and customers feel better and spend more time shopping than artificial one
and energetic costs can be reduced further (Jesenský et al., 2020, p. 350, 352).

The general lighting is used to illuminate the whole floor space, and it should be bright enough
for the customers to navigate the whole store. Directional and point ways of lightning are used
to direct the light beam on the installation or to highlight some products. Nowadays, smart
lightning systems exist which can adjust their intensity according to the phase of the day
(Jesenský et al., 2020, p. 354, 355).

Lightning is also used in the exterior. The stores must be visible from the far-way, but not
overlit, so as not to dazzle the drivers on the road and not contribute to the light pollution.

3.4.2 Colour

3.4.3 Music

3.4.4 Scent

3.4.5 Taste

3.5 Equipment

3.6 Devices

25
4 After-sales service as an essential part of CX
It should be noted that CX is not the same as Customer Service (CS) – these two often being
interchanged. CS is a sort of help or assistance that a customer seeks when something with a
product purchased, or service delivered goes wrong or does not meet customers’ expectations.
It usually covers answering questions, handling complaints, coping with customer inquiries,
and other after-sale services. It could also be concluded from the chapters above that by
providing a well-managed CX, there is no need for CS (Gilmore 2003, p. 9; Walters, 2016, p.
4).

26
5 CX Measurement
https://www.emerald.com/insight/content/doi/10.1108/JOSM-06-2016-0142/full/html

For the CX to be positive, it is essential that the retailer's service fulfil customers’ functional
and emotional needs. A functional need could be a value-for-money product they purchase,
transparent prices and promotions, or a simple purchase process with which the shopping
experience is smooth and fast. On the other hand, an emotional need is related to the customers’
feelings and perceptions along their journey; for instance, some customers appreciate a sense
of belonging and community, so the participation of a retailer in charitable projects fulfil their
emotional need; or the necessity of having well-informed and well-trained personnel in the
stores (Ipsos, 2024).

However, customer satisfaction measurement alone doesn't provide insights into how to achieve
it. Customer satisfaction is the result of a myriad series of individual customer experiences or
the overall outcome of positive experiences minus the negative ones. To comprehend how
satisfaction is attained, a comprehensive examination of customers themselves – the entirety of
their past experiences, along with their positive or negative expectations, must be continuously
monitored and explored in detail (Meyer and Schwager, 2007).

A customer persona is an imaginative character that embodies a significant segment of a

company’s existing or potential customers. These personas serve as the foundation element in
measuring CX and the management of this one. The subsequent step involves customer journey
mapping: identifying the interactions, so-called touchpoints, each persona encounters
throughout the customer journey. This spans from the initial discovery and engagement with
the company, through the process of making the first purchase decision, to the ongoing
utilization of the product or service, and finally, the decision to make additional purchases or
discontinue engagement with the company (IBM, 2024).

27
6 The future of CX

28
7 Tools to improve CX in brick-and-mortar stores
However, the most crucial thing that can be done is to put yourself in the customer’s shoes. It
is not about how the employees would like to feel in the store but about the customers, and
when outlining the CX strategy, everything needs to be devised from the customers’
perspective. Beyond recognizing and comprehending the customer journey at each stage and
during each interaction, it is essential to quantify the aspects that hold significance for
customers, and it must be remembered that a customer is never wrong about their feelings from
a shopping experience. A survey realised by Emplifi (2022) called “11 key things consumers
expect from their brand experiences today“ revealed that more than 80% of participants
indicated that they would abandon a brand they are loyal to after experiencing poor customer Okomentoval(a): [JZ1]: https://www.businesswire.com/new
s/home/20220202005525/en/86-Percent-of-Consumers-Will-
experience on two or three occasions. Additionally, approximately 20% expressed their Leave-a-Brand-They-Trusted-After-Only-Two-Poor-
Customer-Experiences
likelihood to switch after just a single instance of a negative CX (McKinsey & Company, 2022;
Myslíte, že tady může brad znamenat i třeba Tesco, Albert
IBM 2024). nebo byl survey spíše na brandy jako Adidas, Nike, Coca-
Cola?

Another possibility of ameliorating the CX in brick-and-mortar stores could be attracting Pokud spíše na brandy produktů, můžeme to do jisté míry
také stáhnout na maloobchodní společnosti, jako brand? Díky
customers through a customer-centric approach; for instance, if a customer inquires about
nongluten pasta, the staff should not just provide information about the location, but in the best
scenario, they should guide them directly to the appropriate aisle. Moreover, stores should
prioritize quality over quantity. From the excellence of the products offered to the "Thanks for
shopping. See you soon!", every touchpoint should adhere to a predefined set of standards
(Agarwal, 2024).

Fostering loyalty is achieved by capturing a customer's heart – that’s what the management of
CX should be all about. It is also about the “wow” moments that cannot be experienced
elsewhere.

http://crd-aida.ro/RePEc/rdc/v9i3/4.pdf

https://www.nature.com/articles/s41599-023-02023-z

https://www.probecx.com/en-au/blog/top-ways-to-improve-retail-cx

https://www.lumoa.me/blog/customer-experience-in-retail/

https://www.g-co.agency/insights/retail-cx-customer-experience-strategy

29
https://www.supersuperagency.com/blog/improve-retail-customer-experience-cx-complete-
guide-w-examples

• https://www.infosys.com/services/digital-interaction/documents/customer-experience-
retail-industry.pdf
• https://www.mdpi.com/2076-3417/10/21/7644/pdf
• https://ebooks.iospress.nl/pdf/doi/10.3233/978-1-61499-703-0-381

https://www.linkedin.com/advice/3/what-some-innovative-ways-improve-customer-
experience

+ zmínit se o cutomer journey a touchpoints a o lidech.

OBECNE
• Experiential Marketing kniha (v mobile): strana 20
• Marketing de services (Louis Fabien) – v mobilu : strana 48
• Transform Customer Experience : How to Achieve Customer Success and Create
Exceptional CX: Villani: strana 1 OK
• Customer Service Marketing : Managing the Customer Experience: rozklik přes mail,
strana 13
• Towards the 'perfect' customer experience (v proquest)
• Experiential Marketing: Consumer Behavior, Customer Experience and The 7Es:
strana 100, 47 (hodně dobré)
• https://hbr.org/2007/02/understanding-customer-experience

o Whether it is a business or a consumer being studied, data

about its experiences are collected at “touch points”: instances
of direct contact either with the product or service itself or with
representations of it by the company or some third party. We
use the term “customer corridor” to portray the series of touch
points that a customer experiences. What constitutes a
meaningful touch point changes over the course of a customer’s
life. For a young family with limited time and resources, a brief
encounter with an insurance broker or financial planner may be
adequate. The same sort of experience wouldn’t satisfy a senior
with lots of time and a substantial asset base. Companies need
to map the corridor of touch points and watch for snarls. At
each touch point, the gap between customer expectations and
experience spells the difference between customer delight and
something less.
o People’s expectations are set in part by their previous
experiences with a ’s offerings. Customers instinctively compare

30
each new experience, positive or otherwise, with their previous
ones and judge it accordingly. Expectations can also be shaped
by market conditions, the competition, and the customer’s
personal situation. Even when it is the company’s own brand
that establishes expectations, the customer can be set up for
disappointment.

31
8 Introduction of retail chains
In this chapter, a closer look at the two retail chains that are going to be researched further will
be conducted, focusing on Albert Česká republika, s.r.o, as well as its competitor Tesco Stores
ČR, a.s. Each subchapter will briefly introduce the company and its operations in the Czech
market as a way to have a brief understanding of each chain size.

8.1 Albert Česká republika, s.r.o.

Albert Česká republika, s.r.o.1 (for logo, see Figure 10) is a Dutch retail company that entered
the Czechoslovakian market in 1991 (at that time as Euronova, a.s.) with the first modern
Figure 10: Current Albert store logo supermarket called Mana in the Czechoslovak
Republic. The name Albert has been in use since
2000 when Mana and Sesam stores terminated their
operations and were rebranded to the contemporary
name Albert (xflow.cz, 2023). Its business focuses
on inspiring customers to have healthy lifestyles,
offering healthy products, collaborating with local
Source: Seeklogo.com (2023) producers and suppliers and on eliminating food
waste. Albert features a customer loyalty programme scheme called ‘Můj Albert’ operating
since 2021, Albert Scan – a self-service checkout system with a scanner available in certain
outlets, electronic price tags, self-service checkouts, and many more in order to enhance CX
and facilitate the shopping journey of the customer (Albert Česká republika, s.r.o., 2023).

At the end of 2023, there were 341 outlets in the supermarket or the hypermarket formats. The
company employs more than 20 000 employees. The merchandise revenue (tržby za prodej
zboží) amounted 65.8 billion CZK in 2022. Net income for the same year levelled 1.9 billion
CZK (Albert Česká republika, s.r.o., 2022). Albert is the third biggest retail chain operating in
the Czech Republic based on merchandise revenue2 (zboziaprodej.cz, 2023).

1
S.r.o. (společnost s ručeným omezením) could be regarded as the equivalent of a private limited company
in British terminology (IATE, 2023).
2
The number 1 is Lidl and the second place is Kaufland, both from the same operational business Schwarz
Group.

32
8.2 Tesco Stores ČR, a.s.
Tesco Stores ČR, a.s.3 (for logo, see Figure 11) is a British retail company that entered the
Czech market 5 years after the above-mentioned Albert in 1996 by acquiring the outlets of the
American department store K-Mart. Tesco enjoyed a big boom in opening large format stores

Figure 11: Current Tesco store logo

under hypermarket and EXTRA names, which were
opened 24 hours, featuring an in-store pharmacy, an
optician, financial services, and telecommunication
services in a shop-in-shop model. Tesco pioneered
Source: Tesco Stores ČR, a.s. (2023a) large-scale shopping formats in the Czech Republic
that offered everything under one roof. During the
past decade, customer behaviour has changed, and nowadays, the company is reducing the floor
space, focusing mainly on small-size hypermarkets, supermarkets, and Tesco Express -
neighbourhood convenience stores.

The company was among the first to introduce a customer loyalty scheme called Tesco
Clubcard in 2010. Some of its current outlets feature a self-service checkout system using a
scanner, self-service checkouts, and a Tesco Mobile stand. The merchandise revenue (tržby za
prodej zboží) amounted 43.8 billion CZK in 2022. Net income for the same year levelled 113
million CZK. It is the fifth largest retail chain in the Czech Republic. If compared to Albert, it
can be seen that the merchandise revenue is more than 20 billion CZK lower, and the net income
was ‘only’ 113 million CZK in comparison to Albert’s 1.9 billion CZK. It employs more than
7.000 employees in the Czech Republic (Tesco Stores ČR, a.s., 2023b). Tesco is mainly
focusing on waste reduction, reporting, equal opportunities, and sustainability in its business.

At the end of 2023, there were 185 outlets in the hypermarket, supermarket, and express
formats. In addition, the Tesco group operates 17 petrol stations in the vicinity of the
hypermarkets as well as the chain of convenience stores called Žabka (Tesco Stores ČR, a.s.,
2023c).

3
A.s. (akciová společnost) could be regarded as the equivalent of a public limited company in
British terminology (IATE, 2023).

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9 Research Methodology
9.1 Defining the aim and research hypotheses
Hypotézy z auditu a mystery shoppingu
9.2 CX audit
Vice prodejen – Praha – expres, hypermarkety X Kroměříž : hypermarkety, supermarket -
sám

9.3 Mystery shopping

Vice lidí
9.4 Expert interviews

10 Own Research
10.1 CX Audit evaluation

10.2 Mystery shopping evaluation

10.3 Expert interviews evaluation

10.4 Comparison of selected retail stores

11 Evaluation of research hypotheses and objectives of the work

12 Suggestions for improvement and recommendation
Conclusion

https://vse.sharepoint.com/sites/fmv/pedagogika/kvalifikacni_prace/SitePages/Formální-
úprava-práce.aspx -> FORMALNI UPRAVA

https://www.everand.com/read/398205161/Transform-Customer-Experience-How-to-achieve-
customer-success-and-create-exceptional-CX

Proquest : How+to+Achieve+Customer+Success+and+Create+Exceptional+CX

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13 ProQuest: The Experience Economy: Work Is Theatre &
Every Business a Stage
Proquest: Customer Service Marketing : Managing the
Customer Experience

https://books.google.cz/books?id=5hs-
tyRrSXMC&pg=PA81&source=gbs_toc_r&cad=3#v=onepage&q=props&f=false
Welcome to the experience economy

Customer Epeerience with brands:

https://www.researchgate.net/publication/262874623_Customer_experiences_with_brands_Li
terature_review_and_research_directions

https://link.springer.com/article/10.1007/s11747-010-0219-0

Services Marketing and Management: Audrey Gilmore

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