Effect of experiential marketing on purchase intention: a moderated mediation of store image and perceived value among selected supermarkets in Nairobi; Kenya.

Abstract

The experience economy is right here; characterised by high levels of competition and assertive customers who make purchase decisions guided by their rational and emotional influences. Moreover, customers are value driven and get attracted by outlets that project positive images. There has however been no known empirical research that has modelled this complex relationship. The purpose of this study was therefore to determine the relationship between experiential marketing and purchase intention, moderated and mediated by store image and perceived value. The study was grounded on the Theory of Planned Behavior, Pine & Gilmore model of experience economy, and the Stimulus Organism Response model. Quantitative and explanatory research designs guided the study. Data for the study was collected from a sample of 420 customers from the Nairobi city based branches of three tier one retail Chains in Kenya namely Nakumatt, Tuskys and Naivas. Store intercept method was used to purposefully identify the study respondents and a questionnaire used to collect data. Data was tested to ensure that it conforms to the regression assumptions and later analyzed using descriptive and inferential statistics. Confirmatory factor analysis and structural equation modeling (SEM) was used for data analysis, using the software‘s; SPSS, SPPSS with process macro model 7. Relationships were tested based on the dimensions and not the first order constructs. Multiple hierarchical regression analysis was used in determining the regression model with the overall efficiency of the model determined by use of coefficient of determination (R 2 ). The results of the study showed that all the direct and indirect (mediated) relationships were statistically significant. Moreover, bootstrapping results indicate that only three out of six conditional indirect effects were statistically significant; those involving social-sensory experience and social value (β=0.0245: Bt ll 0.0045, Bt ul 0.0516), emotional experience and utilitarian value (β=0.0506; Bt ll 0.0045, Bt ul 0.1075), and, emotional experience and social value (β=0.0628: Bt ll 0.0282, Bt ul 0.1099). These results confirm perceived value dimensions (social, utilitarian and hedonic) as mediators in relationships directed at purchase intention while store image also emerged as a moderator in these relationships. The study has contributed to theory by successfully developing and testing an integrated model on consumer decision making. In addition, a new variable social-sensory experience has emerged from this study. The study recommends that supermarket package their strategies to incorporate the shoppers‘ emotional and social-sensory experiences as well as value propositions that emphasises rational, social and hedonic aspects. Moreover, store personnel should be well trained on service and product knowledge. Future studies may test the model in an online or a non-service sector