Tag Archives: Customer Experience

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Laundromat in Osaka: How to turn a chore into an experience

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I recently visited Zentis Osaka and discovered a lesson in experience design hidden behind the door marked “Room 001.”

The typical hotel laundry room is a purely utilitarian space, equipped only with the essentials: washers, dryers, and an iron.

Zentis, however, focused not just on the chore itself, but on how guests spend time while waiting. They transformed the often-dreary waiting area into an unexpected, welcoming third place.

This space is like a residential lounge. It has rich leather chairs, a comfortable sofa, and a table. A bookshelf with selected books is there. Also, a premium coffee machine offers fresh coffee.

This hotel recognized the fundamental gap between laundry as a necessary chore and hospitality as a comprehensive experience. By intentionally elevating a mundane task, they turned the waiting time into a moment of relaxation.

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Reference

Baek, J., & Choe, Y. (2025). Detrimental Impact of Waiting on Dining Experiences: Evidence from Online Restaurant Reviews. Asia Marketing Journal, 27(1), 39-47.

This study employs big data analytics to examine customers’ waiting experiences in restaurants, a critical component of the broader hospitality and tourism industry. Drawing upon a large corpus of online reviews, the analysis uses topic modeling to identify four salient themes that emerge—waiting, food, servicescape, and service quality—informing the way in which customers perceive and evaluate dining experiences. Two subsequent regression analyses reveal a significant negative relationship between waiting-related comments and overall review ratings, underscoring the disproportionate influence of waiting experiences in shaping customer satisfaction. These findings offer valuable insights for hospitality and tourism practitioners and researchers aiming to deepen their understanding of how waiting times and experiences can impact service perceptions and overall consumer evaluations in restaurant contexts.

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The “Woman Owned” advantage: Makers Market’s strategy to signal competence

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Last month, I stopped by Napa city to see my friend. There, I found the store Makers Market. It was founded in 2014 by Suzy Ekman with the idea to rebuild the American-made legacy. I visited Makers Market at a different location before, writing its hand-crafted goods and natural materials, which signal authenticity.

But this time, I noticed their other, secret weapon. The chalkboard sign outside listed three things.

  • Hand-crafted
  • Sustainable
  • Woman owned

“Woman owned” is actually a very smart way to signal competence. People often think women have warmth, but maybe less business competence. When the business owner chooses to put this fact on the sign, it may flip the stereotype and could become a confident statement: “I am a successful owner of a high-quality business.”

This is not only my idea. A recent marketing research demonstrates that using the “woman-owned” label increases the perception of service quality. For businesses like Makers Market, this simple sign is a powerful strategy to overcome stereotypes and gain customer trust.

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Reference

Davis, N., & Kim, T. (2025). ‘Woman-Owned Business’ Labels Enhance Perceived Competence. Journal of Consumer Research, 52(1), 115-134.

Gender bias is widely recognized as having negative effects on women in business, including on outcomes such as hiring, promotion, pay, and access to venture capital funding. This study identifies a strategy that women business owners can employ to boost business outcomes. Across five preregistered studies (N = 2585), including a field study, affixing the owner attribute label “woman-owned business” can engender positive business outcomes, including perceptions of business competence and service quality (studies 1 and 2). These effects are driven by an increase in perceptions of the business owner’s agency (study 3). Affixing a gender-based owner attribute label is especially effective in situations that lack other credible cues of competence (study 4) and in industries that are perceived as difficult to succeed in (study 5). The present work advances our understanding of stereotypes, discrimination, and identity in the consumer marketplace, and it offers practical implications for business owners in traditionally marginalized groups who face—and must combat—stereotypes.

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More than products: How RH turns design into experience

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In November 2024 I dined at RH Restaurant at RH Yountville. The space blends indoor and outdoor under glass ceilings, with trickling fountains, olive trees, and chandeliers creating a dreamlike garden gallery.

A few months later I visited RH Rooftop Restaurant (Gallery at Stanford / Palo Alto). I sat under a glass-ceiling sunroom. Surrounded by white walls, reflections were everywhere. The entire room felt luminous.

Recently I went to RH Ocean Grill at RH Newport Beach in the evening. The panoramic coastal views were impressive; the decor and lighting heightened the moment.

RH began as Restoration Hardware, first known for high-end furniture. Over time it expanded its scope and became RH, a brand that connects design with lifestyle.

Today RH places its design in lived settings such as restaurants, guesthouses, and even private travel on its own jets RH One and RH Two or its yacht RH Three. This approach lets customers experience the brand directly, not just imagine it.

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Reference

Lemon, K. N., & Verhoef, P. C. (2016). Understanding customer experience throughout the customer journey. Journal of marketing, 80(6), 69-96.

Understanding customer experience and the customer journey over time is critical for firms. Customers now interact with firms through myriad touch points in multiple channels and media, and customer experiences are more social in nature. These changes require firms to integrate multiple business functions, and even external partners, in creating and delivering positive customer experiences. In this article, the authors aim to develop a stronger understanding of customer experience and the customer journey in this era of increasingly complex customer behavior. To achieve this goal, they examine existing definitions and conceptualizations of customer experience as a construct and provide a historical perspective of the roots of customer experience within marketing. Next, they attempt to bring together what is currently known about customer experience, customer journeys, and customer experience management. Finally, they identify critical areas for future research on this important topic.

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Curating taste in Santa Barbara

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When I stayed at the Simpson House Inn in Santa Barbara, the staff told me to visit the Santa Barbara Company for gifts. They said it is the best place. I went there and saw why.

The store does not only sell items one by one. It makes gift boxes with many different things.

One basket had bath salts, white sage soap, a candle, and a seaside mist. These items are chosen for a calming ritual.

Another box had honey, tea bags, postcards, and a candle, showing the taste of Santa Ynez Valley.

A third box had cookies, a honey lollipop, dried flowers, and a small owl-shaped soap. Each box gave a different feeling.

Making these combinations is not simple. It is difficult to choose across categories and still make the gift feel right. But when it works, it matches well with the personal taste of the receiver. One good example is the wine display by the Inglenook winery.

I do not believe AI could easily perform this task. AI can recommend based on past data, but true curation requires subjectivity. To make new and surprising combinations, human taste and imagination are needed. In that sense, curated gift boxes remind me that human taste is still a unique form of intelligence

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Reference

Hwang, S., Park, H., Sohn, M., Yoo, D., Han, C., & Joo, J. (2022). Goal based bundling: A behaviorally informed strategy to combine multiple smart products. In G. Bruyns & H. Wei (Eds.), [ _ ] With Design: Reinventing Design Modes (pp. 2888–2901). Singapore: Springer.

Contemporary electronic manufacturers struggle with how to develop attractive bundles by combining their existing smart products. In the present work, we propose Goal Based Bundling (GBB) by drawing on the academic research of goal systems theory (Kruglanski et al., 2018) and shed light on two previously ignored aspects of bundling strategy: service and glue product. We applied our GBB to a collaborative project with Samsung Electronics, whose goal was to develop new product bundles for kids by combining multiple smart home products. We constructed a framework of Samsung Electronics’ smart products and then visualized it on its sales website. A UI design conveying the value of smart products bundle was developed based on GBB structure. We discuss the process and the result of our project to provide insights into the product managers who combine existing smart products to develop a bundle.

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“Husband daycare?” How a fishing trip became a free pass for wives

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When I visited the Santa Cruz Wharf for the Woodies on the Wharf event, I saw a funny sign. It said:

Husband Daycare
Need time to yourself?
Need time to just relax?
Leave your husband with us!
Drop off as early as 6am Pick up at 3pm

This place is not a real daycare but a fishing and motorboat rental shop. Many men come here to enjoy fishing all day. But the sign is written for wives who could leave their husbands here and enjoy free time.

The same event, men fishing, can have two opposite meanings. One story is “men go fishing to have fun.” Another story is “wives get peace while husbands are at daycare.” Like Tom Sawyer convincing others to paint a fence for him, the value of fishing trip is constructed.

This idea was explained by a classic experimental study in which students were asked if they would attend a poetry recital for free. But before this, they received different questions. One group was first asked if they would attend to receive $2 (accept group). The other group was first asked if they would attend by paying $2 (pay group). Later, when both were asked if they would attend for free, only 8% of the accept group said yes, while 35% of the pay group said yes. This shows that value depends on how the event is framed.

We do not know the real value of an experience. Sometimes, we create that value based on the story we tell others.

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Reference

Ariely, D., Loewenstein, G., & Prelec, D. (2006). Tom Sawyer and the construction of value. Journal of Economic Behavior & Organization, 60(1), 1-10.

This paper challenges the common assumption that economic agents know their tastes. After reviewing previous research showing that valuation of ordinary products and experiences can be manipulated by non-normative cues, we present three studies showing that in some cases people do not have a pre-existing sense of whether an experience is good or bad-even when they have experienced a sample of it.

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How tipping turned from open-ended appreciation to pre-set obligation

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Tipping used to be an open-ended question. We decided the percentage and calculated the amount ourselves. Today, it has become a multipe-choice question. Pre-set options along with exact amounts are displayed on receipts or screens. This shift has changed how we feel about the act of tipping.

At Kabuto in Long Beach, the receipt offers three tipping options: 20%, 15%, or 10%, arranged from highest to lowest. It gave me a sense of flexibility, but the order and limited range pushed me toward choosing within a set range.

Lori’s Diner in San Francisco took a more assertive approach. The receipt included checkboxes for 18%, 20%, or 25%, and showed the final total for each selection. This removed the burden to calcuate, but made it harder to say no.

At Eel River Café at Garberville, the screen displayed four tipping buttons for 15%, 20%, 25%, and even 30%. Each amount was pre-calculated and shown clearly, creating a sense of obligation.

What once felt like a personal gesture of appreciation now feels more like a social obligation. As tip percentages rise and digital prompts become aggressive, the tipping experience shifts from a sincere expression of thanks to a manufactured sense of guilt.

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Reference

Azar, O. H. (2004). What sustains social norms and how they evolve?: The case of tipping. Journal of Economic Behavior & Organization, 54(1), 49-64.

The paper presents a model of the evolution of social norms. When a norm is costly to follow and people do not derive benefits from following it other than avoiding social disapproval, the norm erodes over time. Tip percentages, however, increased over the years, suggesting that people derive benefits from tipping including impressing others and improving their self-image as being generous and kind. The implications to the norm of not cooperating with new workers who accept lower wages are discussed; the model suggests that incumbent workers have reasons to follow this norm in addition to avoiding social disapproval.

Azar, O. H. (2004). What sustains social norms and how they evolve?: The case of tipping. Journal of Economic Behavior & Organization, 54(1), 49-64.
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Why California students prefer Dutch Bros over Starbuck

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Dutch Bros Coffee is growing faster than Starbucks and becoming one of the most successful coffee chains in the U.S. It is now the fourth-largest coffee brand and continues to open new locations.

One reason for this success is its business model. While Starbucks spends heavily on store remodeling, Dutch Bros focuses on small drive-thru locations. This strategy allows them to expand quickly at lower cost.

However, fast service alone is not enough. Dutch Bros succeeds because of its superior customer experience. Unlike Starbucks, which can feel transactional, Dutch Bros creates a warm and personal experience. Their “broistas” (baristas) often remember customers’ names and favorite drinks, making visit feel like a conversation rather than a purchase. The company’s motto, “We may sell coffee, but we are in the relationship business,” reflects its focus on customer connections.

Many students also enjoy the secret menu and customizeable drinks, such as Golden Eagle and Rebel Energy.

Dutch Bros understands what Gen Z wants, that is, a fast and friendly experience. Rather than focusing solely on coffee taste, it focuses on the experience of coffee buyers. Customer experience matters.

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Reference

Lemon, K. N., & Verhoef, P. C. (2016). Understanding customer experience throughout the customer journey. Journal of marketing, 80(6), 69-96.

Understanding customer experience and the customer journey over time is critical for firms. Customers now interact with firms through myriad touch points in multiple channels and media, and customer experiences are more social in nature. These changes require firms to integrate multiple business functions, and even external partners, in creating and delivering positive customer experiences. In this article, the authors aim to develop a stronger understanding of customer experience and the customer journey in this era of increasingly complex customer behavior. To achieve this goal, they examine existing definitions and conceptualizations of customer experience as a construct and provide a historical perspective of the roots of customer experience within marketing. Next, they attempt to bring together what is currently known about customer experience, customer journeys, and customer experience management. Finally, they identify critical areas for future research on this important topic.

Cases

Why $39 feels worth it for a fake experience in Las Vegas

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I recently visited Las Vegas to attend CES 2025. While many exhibitions were exciting, it was a gondola ride at the Venetian Hotel that kept me thinking afterward.

I was surprised to see people willingly pay premium prices for fabricated experiences. The ride costs $39 for a 10-minute journey along an indoor canal under a painted sky. A private gondola for two costs $156! Why would anyone pay so much for something artificial?

The answer probably lies in the power of social status. These fabricated experiences are designed to be visually stunning. They create shareable moments for platforms like Tiktok or Instagram. I saw many visitors took gondola selfies under the “Venetian sky.” Authenticity may matter less than the emotions people gain from the experience.

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Reference 1

Pine, B. J., & Gilmore, J. H. (1998). Welcome to the experience economy. Harvard Business Review, 76(4), 97-105.

How do economies change? The entire history of economic progress can be recapitulated in the four-stage evolution of the birthday cake. As a vestige of the agrarian economy, mothers made birthday cakes from scratch, mixing farm commodities (flour, sugar, butter, and eggs) that together cost mere dimes. As the goods-based industrial economy advanced, moms paid a dollar or two to Betty Crocker for premixed ingredients. Later, when the service economy took hold, busy parents ordered cakes from the bakery or grocery store, which, at $10 or $15, cost ten times as much as the packaged ingredients. Now, in the time-starved 1990s, parents neither make the birthday cake nor even throw the party. Instead, they spend $100 or more to “outsource” the entire event to Chuck E. Cheese’s, the Discovery Zone, the Mining Company, or some other business that stages a memorable event for the kids—and often throws in the cake for free. Welcome to the emerging experience economy.

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Reference 2

Choi, B., & Joo, J. (2021). Authentic Information on the Back Label of Wine Bottle. Asia Marketing Journal, 23(3), 13–26.

This paper investigates whether including authentic information on the back labels of wine bottles enhances consumers’ confidence and purchase intentions about wine; it also assesses the moderating role of involvement and knowledge about wine. We conducted two experimental studies. Study 1 generated three findings. First, when the back label had authentic information, subjects showed higher confidence levels. Second, this effect was hold for subjects with low levels of involvement. Finally, we did not observe this effect for subjects with high levels of involvement. Study 2 extended study 1’s findings and identified the moderated mediation effect of confidence. The findings highlight the important impact on wine choice of authentic information. However, the findings also suggest that authentic information may not be sufficient to attract people with high levels of involvement and knowledge. This study’s findings provide wine producers with practical marketing insights.

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Enhancing shopper experience: A farm’s innovative fruit displays

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During my recent visit to the Farmers’ Market at the California Avenue, I met a unique and captivating fruit display by Sweet Tree Farms.

They presented six different fruits (lemon, apple, tangerine, pomegranate, pear, and orange) peeled, chopped, and neatly arranged in clean containers atop a bed of ice. Each container was paired with its whole fruit counterpart, visually comparing between the raw and prepared states of each fruit.

This creative presentation not only demonstrates the freshness of the fruits but also allows shoppers to imagine these fruits as part of their meals. It was shown that neatly organized and visually clear presentations increased consumers’ willingness to buy, at least, for some products.

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Reference

Deng, X., & Srinivasan, R. (2013). When do transparent packages increase (or decrease) food consumption?. Journal of Marketing, 77(4), 104-117.

Transparent packages are pervasive in food consumption environments. Yet prior research has not systematically examined whether and how transparent packaging affects food consumption. The authors propose that transparent packaging has two opposing effects on food consumption: it enhances food salience, which increases consumption (salience effect), and it facilitates consumption monitoring, which decreases consumption (monitoring effect). They argue that the net effect of transparent packaging on food consumption is moderated by food characteristics (e.g., unit size, appearance). For small, visually attractive foods, the monitoring effect is low, so the salience effect dominates, and people eat more from a transparent package than from an opaque package. For large foods, the monitoring effect dominates the salience effect, decreasing consumption. For vegetables, which are primarily consumed for their health benefits, consumption monitoring is not activated, so the salience effect dominates, which ironically decreases consumption. The authors’ findings suggest that marketers should offer small foods in transparent packages and large foods and vegetables in opaque packages to increase postpurchase consumption (and sales).

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How Eataly transforms food into a Wow moment

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When I visited Eataly at Santana Row in San Jose to shop interesting Italian food items, I had a special experience. First, I was greeted by a big circular display of cured meats and cheeses (Salumi e Formaggi). The bright lights made the food look fresh.

Around this circle, I noticed more salumi and prosciutti hanging on the walls, with their origins detailed above.

As I walked further, I found sections for fresh fish (La Pescheria) and handmade bread (La Panetteria), both well-designed and full of options.

There was also a wine area where I could taste.

What impressed me most was the store’s deliberate use of design elements. Bright lighting made items look premium. Each food section had clear labels on the ceiling. The walls had different colors. Glass was used everywhere to make the store feel open and elegant. These details created a vibrant environment.

A high-arousal store environment, like Eataly, is ideal for customers seeking a recreational experience. This grocery store appeals to shoppers, like me, who enjoy exploring new products and are willing to pay more for the enhanced experience. Eataly is more than just selling fresh food; it creates a “wow” moment that encourages customers to perceive value beyond the product.

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Reference

Kaltcheva, V. D., & Weitz, B. A. (2006). When should a retailer create an exciting store environment?. Journal of marketing, 70(1), 107-118.

Addressing inconsistent results in the literature, the conceptual framework that the authors develop proposes that the consumer’s motivational orientation moderates the effect of the arousal produced by a store environment on the pleasantness of the environment. Two experiments support the framework. When consumers have a recreational motivational orientation, high arousal has a positive effect on pleasantness, but when consumers have a task-oriented motivational orientation, high arousal decreases pleasantness. In addition, high arousal increases consumer intentions to visit and make purchases in the store for recreationally oriented consumers, but it has a negative impact on shopping behavior for task-oriented consumers. Pleasantness mediates the effect of arousal on shopping behavior.