From redesign to revenue: measuring the effects of servicescape remodeling on customer lifetime value

Tony Valentini, Claire Roederer and Herbert Castéran ()
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Tony Valentini: Humanis - Hommes et management en société / Humans and management in society - UNISTRA - Université de Strasbourg, EM Strasbourg - École de Management de Strasbourg = EM Strasbourg Business School
Claire Roederer: Humanis - Hommes et management en société / Humans and management in society - UNISTRA - Université de Strasbourg, EM Strasbourg - École de Management de Strasbourg = EM Strasbourg Business School
Herbert Castéran: IMT-BS - Institut Mines-Télécom Business School - IMT - Institut Mines-Télécom [Paris]

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Abstract: Experiential marketing presents two primary concerns: an imbalance in research where the consumer perspective receives more attention than the organizational one and challenges in effectively measuring experiential strategies. This research addresses these concerns by evaluating retail servicescape remodeling using the concept of customer lifetime value (CLV). A quasi-experimental methodology was used to compare the effects of the remodeled servicescape between a treatment group and a control group in hedonic and utilitarian retail contexts. Our results show significant differences between the two types of contexts in terms of average basket, purchase frequency, churn, and CLV. This research provides valuable insights for retail organizations seeking to measure the impact of experiential strategies on their customers in various types of contexts.

Keywords: Servicescape; Store remodeling; Field experiment; Store environment; Customer lifetime value (search for similar items in EconPapers)
Date: 2024-03
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Published in Journal of retailing and consumer services, 2024, 77, pp.103681. ⟨10.1016/j.jretconser.2023.103681⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-04396752

DOI: 10.1016/j.jretconser.2023.103681

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