Different Theatrical Settings for Customer Experience and Participation - Case Study Example

To compete in today’s commoditized world companies had to move from products and services to stage experiences and guide transformations (Pine & Gilmore, 2000). The retailers started applying theatrical themes to a retail store to create a total experience for the customers. Business that wanted to prosper in the emerging experience economy had to customize the customer experiences and turn them into transformation. This prompted the retailers to use the term ‘retail theatre’ in their public description of their offers. A theatre typically becomes enticing when the front stage, backstage, the script, roles, the setting, the light effects, and the characters all blend together to stage a play with a unique theme (Baron, Harris & Harris, 2001). Retailers have been trying to create theatre environments that involve opportunities for audience participation and interaction. This metaphor has been used by retailers to gain competitive advantage and as a means of differentiation in the highly competitive market place. However, a theatre has a very elite and specific audience whereas the retailers are trying to create a variety of customer responses and reactions. To what extent this metaphor is justified depends on the benefits that both the retailer and the customers derive. Pine and Gilmore point out that the use of ‘theatre’ was not metaphorical. They use theatre in the sense that “work is theater” not “work as theater” (Harris, Harris & Baron, 2003). A retail theatre is considered to be a fun experience aimed at creating excitement. There are certain retail themed environments which employ retail theatre concepts to encourage the consumers to animate the theme. Baron, Harris and Harris (2001) discuss about four different theatrical settings and it has been found that many retailers are actually using such settings to enhance the customer experience and encourage customer participation. In theatrical realism the audiences are voyeurs as they feel that they are looking into their own private world and they observe a very personal situation. Many retailers have been trying to implement this concept. Niketown creates a setting in which the physical exercise and sporting environment allow the customer to become engaged in the shopping activity (Sands, Oppewal & Beverland, 2009). Computer retailers such as Apple have also embraced this concept of realistic settings and have benefited in terms of increased sales and positive word of mouth. Warner Brothers, the sports retailer has set up a video screen in the store, which has definitely made a difference to their store (Faye, 1995). Each store is customized based on the physical location and local flavour. Their stores are customized separately for adults and the children (where they mix fantasy with retailing). Through such flavours, the retailers are trying to bring the American public in direct contact with the characters they grew up with. They try to pull the customers with their impeccable service, their interactive play value and broad selection. Land Rover dealers create a realistic environment as the customer can experience natural obstacles, a steep hill and a 30-degree side tilt (Harris, Harris & Baron, 2001). The UK electrical retailer Comet has a 230 sq. ft. video screen where the customers are allowed to touch, feel and experience the product. Crate & Barrel offer a homely feel with knotty pine walls, products packaged with biodegradable pellets and a cavalier attitude towards products breakage (Faye, 1995). They have been amply rewarded by their customers. Surrealism creates a more sub-conscious experience for the audience. This is done through the use of strange, flashing and coloured lights matched with distorted synthesized sounds. The intended effect is to impress, shock and stimulate the sub-conscious sensory reactions (Baron, Harris & Harris, 2001). Levis is able to create this where the youthful shoppers are captivated through sensory immersion such as flickering video production (Harris, Harris & Baron, 2003). At Shark Attack, customer participation is planned in conjunction with the design of the physical environment. They have a sub conscious experience as they enter through the jaws of a massive great white shark head. Inside the store activities also encourage customer participation. In-store evens do have an impact on store choice decisions more so in the case of specialist stores (Sands, Oppewal & Beverland, 2009). It increases the utility that customers expect to derive from the store. In political realism the audiences as spectators are encouraged to be relaxed, eat, smoke and exchange views while the theatre is on (Baron, Harris & Harris, 2001). This stimulates a critical response from the audience. A Bell Aliant store has provided gaming space, an internet lounge and a TV lounge (DInnocenzo, 2006). The purpose of a theatre is to keep the audience enraptured with the drama that is being staged. Providing such facilities may distracts the customers from the mission. Such facilities serve more as a hang-out for the shoppers. Consumers today want experience and are not very price conscious. If they have a positive relevant experience they are more likely to buy the brand. This is the reason that retailers invest in futuristic, enticing, friendly and interactive shop. According to the Brecht’s model audience are more relaxed when they can see each other and when there are no absolute divisions between them and the actors (Harris, Harris & Baron, 2001). Retailers like to add a dash of theatre to set themselves apart in today’s retail environment (Faye, 1995). The retailers add some production and flare to the in-store environment to keep the customers engaged and also encourage repeat visits. Theatres have always been associated with the elite; the customers too are willing to pay more but visit the retailer who treat them right. In the absurd theatre setting the idea is to engage the customers both intellectually and emotionally and stimulate an individual response from the audience. Tandy Corp.’s, a store which sells consumer electronics, appliances and software, encourages customers to play with the merchandise (Faye, 1995). The sales force is compared to the cast in a theatre where each character is important. How they deliver their roles determines the success of the store. Customer perception depends upon the décor, merchandise, location and size of the store (Agnis, 1989). Managers in retail settings have been able to incorporate the elements of a theatre into store design and merchandise presentation (Baron, Harris & Harris, 2001). Bergdorf, though small, concentrated on an eclectic mix of merchandise and turned its store into a retail theatre. They stock only exclusive products and not what is available at all stores. Its entrance is a rotunda which evokes images of Versailles. As soon as one enters one finds towering floral arrangements and antique furniture that lures the customer. It is elegant, it is sumptuous and filled with glamorous customers. This suggests that a theatrical setting is achieved by offering a new design setting and flexibility. Adding a ‘wow’ factor and making the shopping experience ‘fun’ is not what a theatre experience offers (Baron, Harris & Harris, 2001). Retailers such as Niketown and Toyota want their customers to interact with the merchandise to stimulate a variety of behavioural responses leading to purchase. Some want to generate cognitive responses while others want their customers to develop a ‘sense of belonging’. Theatre and a theatrical experience is neither about fun and entertainment, nor about servicescapes and nor does it call for customer participation. Not all retailers are actually benefiting from the term ‘theatre’ added to their operations. Some merely like the use of terms such as ‘auditioning now’ (Berketex Brides) and some refer to their consumers as ‘the audience participating in the production’ (Niketown) (Harris, Harris & Baron, 2001). Customer loyalty is the key to organizational success and loyalty programs create a reluctance to defect (Divett, Crittenden & Henderson, 2003). Satisfaction, commitment and trust play important roles in customer behavioral loyalty. This was tested in the context of a theatre company and they found that trust and commitment were the drivers of future theatre patronage (Bove & Mitzifirs, 2007). The same drivers of loyalty were found to be applicable to the retail environment also. The retailers have to move beyond customer satisfaction in a transaction prone retail environment. Customer loyalty can be achieved through total customer experience and customer participation. Through different theatrical settings the intention is to provide total customer experience and encourage customer participation. The employees are an important and integral part of the theatre or the retail showroom. Total customer experience is the strategic initiative that retailers are taking now hence every single contact the customer has with the organization should be holistic. A ‘script’ of the theatre denotes the precise specifications that the service staff has to adhere to (Harris, Harris & Baron, 2003). Scripts create procedures and the sequence in which these have to be followed. Such scripts provide the employees, managers and the customers with an established framework but they still have the liberty to explore and define the intended experiential goal. This forms the basis for employees to develop and create intended experiences for customers. The dramatic script or the ‘blueprint for theatrical production’ enables employees to perform more effectively in a service context. It sensitizes the employees towards the needs of the customers as because employees get an opportunity to experiment with different roles within the company play script. The creativity of the employees can be stimulated because they get the freedom to dramatize a realistic scenario. Customer participation can take place in different forms and when customers participate, the service quality and levels of satisfaction increase. However customer participation is controlled and managed primarily through the structure of the physical setting and service process. The employees’ contribution is confined to following rules and procedures and ensuring no negative interactions take place between customers. Employees need to have a proactive role in encouraging participation and this is done at many retail stores through the use of a ‘narrator’ where comments about in-store offers and product availability are regularly announced over the loud speaker (Harris, Harris & Baron, 2001). However there is no scope of a critical response from the customer because the script has been prepared in advance. Actors in a theatre have to show their attitude and objectives in the scene and this is shown in a retail environment especially in a sports environment where the assistance wear appropriate clothing and demonstrate the use of equipments. Organizations have different motivations in using the ‘retail theatre’ concept. They have a desire to create a physical theatrical environment in-store; there is emphasis on fun, excitement and entertainment and there is a desire to encourage greater audience or customer participation in the experience (Harris, Harris & Baron, 2001). Theatres have to be creative and innovative; the retailers use technology such as scanning and automatic inventory replenishment (Faye, 1995). Technology enables them to maximize their productivity and offset the costs of adding entertainment in-store that make them a destination shopping. Retailers use the term ‘retail theatre’ to imply that their service offer is special and different but not all retailers actually provide such a differentiating experience. However, retailers have been able to successfully apply the theatrical techniques and stimulate the audience/customers to receive their active participation. Retailers focus more on creating the environment, the physical setting and entertainment for the customers. It is not just the ‘wow’ factor but most retailers have been able to translate the theatre environment into more customers, repeat customers, satisfied customers and ultimately growth in sales. Various theatrical roles are played by the organization such as that of the narrator, of the director, creating the suitable environment, enticing experiences, a relaxed atmosphere which removes the barriers between the audience and the actors. This approach has not only helped the retailer attract and retain customers but it has also led to better employee response and participation. Through such theatrical settings total customer experience and customer participation has been achieved by any retailers. They are able to engage the customers intellectually and emotionally through different techniques. This suggests that the metaphor of ‘retail theatre’ is not merely rhetoric but has benefited the organization, the customers as well as the employees. References Agnis. T. (1989). A Tale of Two Retailers: Bergdorf Rose, Bonwit Fell. Wall Street Journal. (Eastern edition). New York, N.Y.: Jun 26, 1989. pg. 1 Baron, S., Harris, K., & Harris, R. (2001). Retail theater: The "intended effect" of the performance. Journal of Service Research, 4 (2), 102-117 Bove, L., & Mitzifirs, B., (2007). Personality traits and the process of store loyalty in a transactional prone context. Journal of Services Marketing, 21/7, 507–519 Divett, M., Crittenden, N., & Henderson, R. (2003). Actively influencing custmer loyalty. Journal of Consumer Marketing, 20 (2), 109-126 DInnocenzo, L. (2006). Strategy. Toronto, Ont.: Oct 2006. pg. 26 Faye, B. (1995). Retail theater. Sporting Goods Business. San Francisco: Jul 1995. 28 (7), 66 Harris, R., Harris, K., & Baron, S. (2001). Customer participation in retail service: lessons from Brecht. International Journal of Retail & Distribution Management, 29 (8), 359-369 Harris, R., Harris, K., & Baron, S. (2003). Theatrical service experiences. 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