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Article
Publication date: 11 April 2022

Philipp “PhilKlaus and Annalisa Tarquini-Poli

This study aims to address the need to empirically investigate the luxury customer service experiences of the ultra-high-net-worth individual (UHNWI) segment by conducting and…

Abstract

Purpose

This study aims to address the need to empirically investigate the luxury customer service experiences of the ultra-high-net-worth individual (UHNWI) segment by conducting and analyzing interviews with 20 clients flying private jets. The results lead to a conceptualization of the UHNW private aviation customer experience.

Design/methodology/approach

This study applied a three-step method to explore the meaning and domain of the UHNWI luxury service experience. First, the perception and corresponding attributes of customers’ experiences using private aviation services were examined through 20 in-depth interviews and by using the soft laddering technique. Second, this study coded and, subsequently, purified the data by means of a systematic comparison approach and hierarchical coding. Third, a panel of judges, using the emerging consensus technique, scrutinized and validated the emerging dimensions.

Findings

The analysis reveals the customer experience (CX) and motivations differ significantly between business and leisure use, moving from a functional toward an experiential value focus. The findings emphasize the lack of social value for the UHNWI CX and introduce time as a new value dimension.

Research limitations/implications

This study provides multiple contributions to the customer experience, luxury and luxury services literature. This study enhances scholarly understandings of the holistic UHNWI CX in the context of an absolute luxury offering, thus providing a needed conceptualization of an underresearched customer segment, namely, the UHNWI. It delivers insights on the different motivations and experience UHNWI are seeking for according to the context. This study proposes a new luxury value dimension: time.

Practical implications

This study highlights multiple opportunities for UHNWI customer experience improvement. The findings reveal that different clients are looking for different experiences in terms of business versus leisure use. The key drivers and expectations shift from functional (price/availability/flexibility) to experiential factors (comfort/onboard experience/relationship with crew and pilot). Communication, marketing and CX management strategies and tactics need to emphasize this important distinction regarding what drives client behavior in the private aviation setting.

Originality/value

The contribution of this paper is threefold. First, it defines UHNWI characteristics and overall experiences using the unique über-service of private aviation, thus advancing scholarly understanding of both the luxury customer and the luxury customer service experience beyond the proposed traditional drivers of luxury consumption. Second, this study expands the conceptual foundation for the UHNWI “über-luxury” service experience, which, given the importance of the UHNWI segment, is important. Third, this study contributes to theoretical knowledge by extending customer value perception in the luxury context by introducing the luxury value dimension of time. This study concludes with a discussion of its findings’ implications for luxury research and practice, providing a future research agenda with regard to UHNW.

Details

European Journal of Marketing, vol. 56 no. 4
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 26 February 2021

Philipp ‘PhilKlaus

This study aims to explore the customer experiences (CXs) of an under-researched luxury client segment, the ultra-high-net-worth individuals (UHNWI) in three settings, yacht-made…

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Abstract

Purpose

This study aims to explore the customer experiences (CXs) of an under-researched luxury client segment, the ultra-high-net-worth individuals (UHNWI) in three settings, yacht-made clothing services, chartering a yacht and art collection.

Design/methodology/approach

The author conducted 13 interviews with UHNWI, enquiring about their experiences with different services. The author collected and analyzed the data using a recommended three-step approach: in-depth interviews using soft-laddering; coding and purifying data through a systematic approach and hierarchical coding; and using the emerging consensus technique to scrutinize and validate the emerging themes.

Findings

This study revealed UHNWI drivers or purchasing and repurchasing behavior as (mis)managing expectations, personal relationships with personnel and achieving convenience-driven time savings. The corresponding conceptual framework is the UHNWI luxury CX.

Practical implications

This study reveals how über luxury brand managers need to carefully manage the UHNWI clientele expectations, focusing their investment on their brand personnel and the way they can save their clients’ valuable time.

Originality/value

This study is the first to explore UHNWI perceptions of their experience with über luxury providers across multiple contexts. This study highlights that the luxury experience, not the acquisition and owning of luxury goods, drives the UHNWI decision-making and purchase behavior.

Details

Journal of Product & Brand Management, vol. 31 no. 3
Type: Research Article
ISSN: 1061-0421

Keywords

Article
Publication date: 5 October 2021

Philipp ‘PhilKlaus, JungKun Park and Annalisa Tarquini-Poli

Traditionally, international luxury marketing highlights possible disparities of cultural and value perception. The context-specific nature of traditional international luxury…

Abstract

Purpose

Traditionally, international luxury marketing highlights possible disparities of cultural and value perception. The context-specific nature of traditional international luxury marketing, which ranges from educational and cultural to financial and offering-based variations, delivers little guidance to managers in the field regarding how to cater best to their highest target segment. The study aims to exemplify the relevance of global consumer culture (GCC) theory for the ultra-high-net-worth-individual (UHNWI) context. The authors' research on UHNWIs maps the DNA, so to speak, of the UHNWI customer experience (CX) by determining what drives UHNWI purchasing behavior independent of background – in other words, what matters most to this exclusive consumer segment.

Design/methodology/approach

Interviewing 15 UHNWIs using a means-end approach and incorporating the emerging consensus technique (ECT), the authors explored the CX of UHNWIs leading to their purchasing decisions.

Findings

The authors' analysis reveals the three main constituents of the UHNWI CX: the value of time, expectation mismanagement and the utilitarian nature of luxury. The findings highlight that UHNWIs see traditional luxury as a necessity rather than a luxury and value different factors, such as time, much more highly. The findings highlight the UHNWI homogenous nature, connecting GCC to purchasing behavior.

Practical implications

The authors' study delivers empirical evidence of what matters most to the UHNWI segment and drives their purchasing behavior. The authors are questioning existing luxury segmentation strategies and lay out a clear guidance on how to design and deliver effective and efficient marketing, sales and communications strategies for the elusive UHNWI segment. The research highlights that it is the experience and the three main dimensions, namely expectation mismanagement, luxury as a utility and the value of time. Following UHNWI CX DNA framework will allow luxury companies to build their marketing and client acquisition efforts on a solid understanding of what matters most to the UHNWI target segment.

Originality/value

The study highlights the commonalities of UHNWIs in terms of what matters most to them. Based on this, the authors develop a UHNWI CX DNA. The authors propose that traditional context-specific differences upheld by international marketing researchers might not apply to the UHNWI segment. The authors deliver evidence that UHNWI are an excellent example of the applicability of GCC theory. The only difference in perception the authors noticed was between CX evaluations of self-made UHNWIs and those who inherited their wealth in an otherwise homogenous segment.

Article
Publication date: 22 August 2020

Philipp ‘Phil' Klaus and Aikaterini Manthiou

This paper’s objective is to raise awareness of how customer experience (CX) research, a key construct of modern-day service research, needs to be revisited in view of the…

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Abstract

Purpose

This paper’s objective is to raise awareness of how customer experience (CX) research, a key construct of modern-day service research, needs to be revisited in view of the pandemic. Particularly, we examine whether CX-related service research constructs, models and frameworks need to be reevaluated during and after the Corona crisis and if so, how and why? Moreover, this paper contributes to CX research by analyzing the customer mindset from three perspectives: emotions, employment and expectations (EEE).

Design/methodology/approach

We critically review current CX practices and investigate the impact on how customers perceive services in this time of crisis.

Findings

Based on this critical analysis, we discuss implications for research and practice with reference to the example of the luxury industry with its historical emphasis on the CX. This discussion leads to related propositions and research directions through Corona and beyond.

Originality/value

We investigate the current customer mindset in more detail, which we divide into three main themes: emotions, employment and expectations (EEE).

Details

Journal of Service Management, vol. 31 no. 6
Type: Research Article
ISSN: 1757-5818

Keywords

Article
Publication date: 22 July 2021

Volker G. Kuppelwieser and Phil Klaus

The purpose of this paper is to replicate the EXQ measurement scale in the business-to-business (B2B) environment of two African countries. This paper contrasts EXQ’s measurement…

Abstract

Purpose

The purpose of this paper is to replicate the EXQ measurement scale in the business-to-business (B2B) environment of two African countries. This paper contrasts EXQ’s measurement specification and structure in these two countries with a European sample.

Design/methodology/approach

This paper carried out two empirical studies to replicate and test the EXQ scale in an African context. Following the scale’s previous application, this paper replicated the EXQ in Morocco and South Africa, and added a European study conducted in the UK.

Findings

The findings highlight that, despite having the same customer experience (CX) delivery structure, the B2B experience in Africa differs significantly from other countries. Further research replicating CX measurement in the African environment is therefore needed, preferably starting with a qualitative study.

Originality/value

This study provides insight into how the B2B CX, measured by EXQ, differs from one country to another. Most significantly, the Moroccan sample demonstrates a never-before-reported high correlation between the service and post-purchase experience.

Article
Publication date: 29 November 2022

Phil Klaus

This paper aims to comment on the evolution of customer experience (CX) research from a CX researcher, practitioner and consumer viewpoint.

Abstract

Purpose

This paper aims to comment on the evolution of customer experience (CX) research from a CX researcher, practitioner and consumer viewpoint.

Design/methodology/approach

This commentary is a reflection based on the investigations put forward in this special issue, extant academic and managerial literature and personal perspectives.

Findings

While nascent in terms of constructs, CX has developed satisfactorily from a research perspective. That being said, CX research that guides and aids managerial practices is still lacking. Without being relevant to practice, CX research might fail to deliver on its promise to shape practice and positively impact consumers and their experiences.

Research limitations/implications

Service marketing researchers are encouraged to consider the current “status quo” of CX research and how a possible repositioning and refocusing of their efforts could advance CX research and, more importantly, CX practices.

Practical implications

CX practitioners can indeed learn from CX researchers if research aligns with the aim of guiding and assisting practices.

Originality/value

This special issue expands the understanding of the effect of physical context on CX. The commentary challenges the overall direction in which CX research is heading and offers valuable guidance on how to turn these challenges into opportunities.

Details

Journal of Services Marketing, vol. 37 no. 6
Type: Research Article
ISSN: 0887-6045

Keywords

Article
Publication date: 30 August 2024

Aikaterini Manthiou, Van Ha Luong, Kafia Ayadi and Phil Klaus

The experience of leaving the real world and entering a virtual service environment makes many individuals happy. This study heeds the call by multiple researchers to…

Abstract

Purpose

The experience of leaving the real world and entering a virtual service environment makes many individuals happy. This study heeds the call by multiple researchers to conceptualize, interpret and illustrate the impact of the perceived service experience in the metaverse in a holistic way. In particular, this study aims to understand how the consumption of experiences is perceived in a metaversal space.

Design/methodology/approach

The authors analyze mega virtual live events with famous artists broadcast in virtual worlds. The authors take a big data approach and include two studies to gain insight into the online public audience’s perceptions and experiences in the metaverse. In the first study, the authors analyze text from YouTube with Leximancer. In the second study, the authors go one step further to refine the conceptual model from Study 1. The authors scrutinize additional Facebook comments using seeded Latent Dirichlet Allocation (LDA).

Findings

The findings reveal that the meta service experience (MEX) encompasses four dimensions: immersion, metascape, immediacy and hedonism.

Originality/value

This research provides important guidance not only for consumer behavior scholars but also for service marketers and event planners. The study proposes research opportunities to advance service experience research in the metaverse.

Details

International Journal of Contemporary Hospitality Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0959-6119

Keywords

Article
Publication date: 8 April 2020

Phil Klaus and Judy Zaichkowsky

This paper aims to document how AI has changed the way consumers make decisions and propose how that change impacts services marketing, service research and service management.

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Abstract

Purpose

This paper aims to document how AI has changed the way consumers make decisions and propose how that change impacts services marketing, service research and service management.

Design/methodology/approach

A review of the literature, documentation of sales and customer service experiences support the evolution of bot-driven consumer decision-making, proposing the bot-driven service platform as a key component of the service experience.

Findings

Today the focus is on convenience, the less time and effort, the better. The authors propose that AI has taken convenience to a new level for consumers. By using bots as their service of choice, consumers outsource their decisions to algorithms, hence give little attention to traditional consumer decision-making models and brand emphasis. At the moment, this is especially true for low involvement types of decisions, but high involvement decisions are on the cusp of delegating to AI. Therefore, management needs to change how they view consumers’ decision-making-processes and how services are being managed.

Research limitations/implications

In an AI-convenience driven service economy, the emphasis needs to be on search ranking or warehouse stock, rather than the traditional drivers of brand values such as service quality. Customer experience management will shift from interaction with products and services toward interactions with new service platforms such as AI, bots. Hence, service marketing, as the authors know it might be in decline and be replaced by an efficient complex attribute computer decision-making model.

Originality/value

The change in consumer behavior leads to a change in the service marketing approach needed in the world of AI. The bot, the new service platform is now in charge of search and choice for many purchase situations.

Article
Publication date: 14 April 2014

Philipp Klaus, Bo Edvardsson, Timothy L. Keiningham and Thorsten Gruber

Despite efforts by researchers and managers to better link marketing activities with business financial outcomes, there is general agreement that by and large chief marketing…

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Abstract

Purpose

Despite efforts by researchers and managers to better link marketing activities with business financial outcomes, there is general agreement that by and large chief marketing officers (CMOs) (and marketing in general) have lost strategic decision-making influence within organizations. The purpose of this paper is to understand the causes of this decline and offer recommended solutions to counteract this trend.

Design/methodology/approach

In-depth interviews lasting between 40 and 55 minutes were conducted with 25 chief executive officers (CEOs) of service companies located in Western Europe, North America, and Australia. In total, 13 difference countries were represented. Using Emerging Consensus Technique, we identified four main themes, which cause the goals of CEOs and those of CMOs/marketing to diverge.

Findings

The primary cause of the decline of strategic influence of CMOs and marketing overall with CEOs is a function of four key issues: first, the role of the CMO (e.g. task overload, focus on tactical issues, “outdated” skill set); second, lack of financial accountability (e.g. the inability to connect marketing efforts to financial returns); third, digital and social media (e.g. a perceived obsession with new technology); and forth, lack of strategic vision and impact (e.g. lost sight of “core” job, use of irrelevant metrics).

Practical implications

The findings indicate that CMOs must address the four key issues uncovered for marketing to attain/regain a role in strategic decision making. A proposed roadmap for putting marketing back on the CEOs agenda is presented to guide CMOs.

Originality/value

This research provides marketers with a CEO eye view of their role within organizations.

Details

Journal of Service Management, vol. 25 no. 2
Type: Research Article
ISSN: 1757-5818

Keywords

Article
Publication date: 9 October 2024

Phil Klaus, Karen Edwards, Daniela Norvik, Aikaterini Manthiou and Van Ha Luong

This study aims to explore the transformative potential of universal design (UD) principles in changing servicescapes to enhance consumer experiences and foster inclusive…

Abstract

Purpose

This study aims to explore the transformative potential of universal design (UD) principles in changing servicescapes to enhance consumer experiences and foster inclusive practices across various sectors.

Design/methodology/approach

Drawing from existing literature and research findings, this study offers a review of inclusive servicescapes and service practices through the lens of UD. The investigation spans multiple domains to highlight the impact of UD principles on inclusivity and societal welfare.

Findings

This research delves into the theoretical and practical contributions of UD principles, showcasing their application in diverse sectors to enhance citizenship experiences. This study presents valuable insights for businesses and service providers, emphasizing the significance of UD in improving societal well-being and fostering inclusivity.

Research limitations/implications

This study broadens the theoretical framework of UD, showcasing its versatility across various sectors and reinforcing its contribution to enhancing societal inclusion. By analyzing the interplay between UD principles and inclusive servicescape practices, this study highlights UD’s transformative impact on enriching citizenship experiences and fostering a deeper sense of belonging. Drawing from seminal works, this research not only adds to the understanding of UD’s role in promoting inclusivity but also strengthens the linkage between UD and inclusion theory, advancing the discourse on design's pivotal role in facilitating societal participation and crafting inclusive environments.

Practical implications

The findings of this study provide practical guidance for businesses and service providers to incorporate UD principles into servicescapes and service practices, enhancing consumer experiences. By referencing examples from education, retail and digital domains, this study offers insights for organizations seeking to create more inclusive and accessible environments.

Social implications

The societal implications of incorporating UD principles into marketplace practices are significant, promoting societal inclusivity and acceptance of diversity. By emphasizing the role of UD in fostering inclusive servicescapes, this study contributes to societal initiatives to ensure inclusivity and accessibility in the marketplace, ultimately enhancing the well-being of individuals with diverse abilities and promoting a more equitable society.

Originality/value

Building on existing literature, this study expands the understanding of UD and its potential impact on citizenship experiences. By anchoring the research on established perspectives and incorporating practical examples, this study offers original insights into the transformative power of UD in creating more inclusive and equitable societies.

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