Lecture Notes on Design Science and Customer Experience PDF

*Lecture 1* Design science is translating **requirements** into **design:** - User requirements - Business requirements - Market requirements - Engineering requirements Design effects depend on **context**: - **Activities** (complex vs. simple tasks) - **Dynamics** (peak vs. off...

*Lecture 1* Design science is translating **requirements** into **design:** - User requirements - Business requirements - Market requirements - Engineering requirements Design effects depend on **context**: - **Activities** (complex vs. simple tasks) - **Dynamics** (peak vs. off peak hours) - **Consumer needs** (motivation) - **Customer journey \> touchpoints** that trigger responses A service can be compared to a **theater**: - Performance: the service delivery process (**moment of use**) - Actors: consumers, employees, AI, etc. - Back Stage: service operations/back office - Stage (=**servicescape**): the style and appearance of the physical surroundings - Script: the norms, rules and protocol The physical environment of a place or service influences the way customers (and employees) **act, feel** and **think**. The aspect of such an environment can be outlined in a **servicescape** (Bitner, 1992). The servicescape focuses on: 1. Importance of physical surroundings 2. Typology of servicescapes (how complex/how interactive a servicescape is) 3. Environment-user relationships Two systems of processing information: **System 1**: unconscious, fast, *emotional* **System 2:** slow, conscious, rational This is called the **Dual-System Theory** (Kahneman). These two systems each play their own role in design challenges. System 1 relies heavily on recognition and routine design tasks while System 2 engages in evaluation and refinement, making it useful for non-routine creative tasks. To understand the reasoning behind design, the **S-O-R** paradigm is often used. This paradigm describes how different **s**timuli (touch, smell, etc.) are processed through an **o**rganism and its emotion (pleasure, arousal, dominance, etc.) and lead to a certain **R**esponse. *Lecture 2* **Baker et al**. -- Service Environment Research Opportunities This article explores how the physical environments of service settings influence customer behavior, emotions and decision-making. The key concepts in this article include: - **Service Environment**: the physical environment (interior and exterior) facilities within which service encounters occur. - **S-O-R** **Model**: A framework where environmental stimuli affect consumers' emotional states, which then influences approach or avoidance behaviour. - **Servicescape model**: A model proposed by Bitner, focusing on environmental dimensions to understand consumer responses. **Findings on environmental factors**: *Ambience Factors:* - Music: Influences consumer satisfaction and behavioural intention. Congruent music enhances recall and willingness to pay. - Lighting: Bright lighting promotes alertness: product-focused lighting increases interaction - Scent: Simple and congruent scents improve ease of processing and spending - Temperature: Physical warmth can increase social warmth and influence decisions - Cleanliness: Enhances perceptions of quality and influences customer loyalty *Design Factors* - Color: Warm colors evoke arousal, while cool colors improve satisfaction. - Spatial factors: Lay-out, seating arrangements, and visual complexity significantly influence perceptions and purchasing behavior. - Materials: textures of surfaces affect consumer evaluations. *Social Factors:* - Other Consumers: crowding has mixed effects, with task shoppers perceiving it negatively but hedonic shoppers finding excitement. - Employees: Attributes of employees interact with environmental cues to affect customer perceptions. *Exterior Design*: Storefront architecture and window displays influence consumer approach. **Lemon et al.** This article talks about the customer journey and customer experience. *Key Concepts*: - **Customer Experience (CX)**: defined as a multidimensional construct focusing on cognitive, emotional, behavioral, sensorial, and social responses to a firm's offering during the customer journey. - **Customer Journey**: the "storyline" of a service. Includes three phases: - Prepurchase: Need recognition, search, consideration - Purchase: Choice, ordering and payment - Postpurchase: Usage, engagement, service requests, loyalty A customer journey includes **touchpoints**: moments of interaction with the consumer. There are four types of touchpoints: 1. **Brand-owned**: Controlled by firm (e.g. advertising or loyalty programs) 2. **Partner-owned:** Co-managed by firm and partners (e.g. multichannel distribution) 3. **Customer-owned:** Actions initiated solely by customers (e.g. reviews) 4. **Social/External**; Peer influences (e.g. social media, independent review sites) A customer focused tool for mapping service delivery is the **service blueprint,** which also includes the firm's internal business alongside the customer journey. The customer journey itself focuses more on how the customer perceives the service. **Lin et al**. This paper introduces the Experience Design Board, a structured tool for analyzing and designing experience-centric services (ExS) (similar to Service Blueprint). **Key Insights** - ExS focuses on creating emotionally appealing events that result in memorable experience (e.g. theme parks, entertainment and digital games) - The Experience Design Board is catered towards ExS and focuses on the theater model and multi-sensory nature, rather than other tools such as service blueprint - The Experience Design Board also takes into account the behaviour of other customers. *Other Lecture Insights*: In decision making, f.e. a chocolate bar, the consumer mentally creates a set of brands: - **Evoked Set (\>20):** All the brands of chocolate the consumer is aware off - **Consideration Set** **(7 +/- 2)**: The set of brands which the user considers buying - **Choice** (1): The brand bought With marketing and branding, we try to reach the **consideration set**. Environmental design is **more important** for service providers than it is for product sellers since **products can be evaluated based on functionality**, **services cannot**. *Lecture 3* **Kandanpully (2023)** This article explores the integration of **servicescapes** and **experiencescapes**. It argues that a servicescape contains the following aspects: - **Physical** - **Social** - **Natural** - **Symbolic** An experiencescape expends on a servicescape by including **cultural** and **technological** aspects to create a memorable experience. It argues that technology should be rather used as *partner* than as *tool.* **Kumar (2020)** This article talks about **biomorphic design**, which are designs, patterns, shapes and textures that mimic nature. They have many different advantages. Biomorphic designs provide an indirect experience of nature and is more feasible to implement than directly implementing natural elements like water and greenery. It is useful to create a sense of nature in an urbanistic environment. **Attention Restoration Theory** (ART) = The theory that certain environments help restore attention. The environment must have five characteristics to stimulate attention restoration: 1. **Being Away** = The environment provides an escape from daily routines or stressors, giving the mind a chance to relax. 2. **Fascination** = The environment captures attention effortlessly, without requiring active focus. 3. **Scope** = The environment feels spacious and immersive, allowing for freedom of movement and engagement 4. **Coherence** = The environment is organized and harmonious. 5. **Compatibility** = The environment aligns with the individuals purposes, needs or activities. The article also talks about the **Place Identity Theory**, which means that an individual can have a psychological connection with a place. There are two types of place identity: 1. **Emotional Place Identity** = attachment and a sense of belonging to a space 2. **Cognitive Place Identity** = memories and/or associations to a space Biomorphism enhances both emotional as cognitive place identity. **Pizam et al. (2018)** This article talks about experienscapes and is similar to the article of Kandanpully. Instead of focusing on cultural and technological aspects like Kandanpully, Pizam et al argue that the following dimensions should be emphasized in an experienscape: 1. **Sensory** 2. **Functional** 3. **Social** 4. **Natural** 5. **Cultural** This article also takes a multi-stakeholder perspective, and emphasizes the importance of employees, vendors and other stakeholders. *Other Lecture Insights* **Optimal Arousal Theory =** Every individual is motivated to maintain a balanced level of arousal, neither too high or too low, to achieve the best experience (pleasure). - Too little arousal = boredom - Too much arousal = overstimulation Each individual has an ideal level of arousal, where pleasure peaks. More or less arousal decreases the pleasure (parabole). **\ ** Human emotions can be placed on a scale with on the X-axis **pleasure** (unpleasant to pleasant), and on the Y-axis **activation** (deactivation to activation). This is called **Russell's circumflex of emotions**. The same can be said for **arousal** (scale of excitement) and **dominance** (scale of feeling in control). The combination of these two scales can determine the amount of pleasure: - **Boredom** = low arousal + low dominance *low pleasure* - **Relaxation** = low arousal + high dominance *high pleasure* - **Anxiety** = high arousal + low dominance *low pleasure* - **Excitement** = high arousal + high dominance *high pleasure* Another similar theory is the **reversal theory**. Humans reverse between both motivational states and emotional states. Consumer motivation can be separated into two types of motivations: 1. **Must** = task shoppers a. Seek relaxation, are task & time oriented 2. **Lust** = hedonic shoppers b. Looking for diversion, entertainment. Are in no hurry. *Lecture 4* **Carrel** **(2023)** This article talks about **green nudging** and **construal-level theory**: - The **Construal-Level theory** describes how people perceive objects, events or actions based on their psychological distance. This distance can be special, social, temporal or hypothetical. - **Green nudging** (from nudge theory) is a behavioral intervention that subtly encourages individuals to adopt eco-friendly actions. The article found that nudges which are focused on **feasibility (how)** are more effective than **desirability** **(why):** - **Feasibility** ('how'): - Relies on concrete, close psychological distance - Is simple to understand and visualize - **Desirability** ('why'): - Is abstract, appealing to distant broader goals. *Other Lecture Insights* There are 7 principles of persuasion: 1. **Reciprocity**: more likely to comply with someone who has done us a favor 2. **Authority**: more likely to comply with someone who holds legitimate authority 3. **Social proof**: more likely to with thinks that we think others like us are doing 4. **Liking**: more likely to comply with someone we like 5. **Commitment/Consistency:** we commit ourselves to something, we are most likely to behave in a way that's consistent with 6. **Scarcity**: we value scarce or exclusive things 7. **Unity**: we value the bond formed by a shared identity **Fogg Behaviour Model** = Activation threshold = motivation x ability - Prompts (successful triggers) in Fogg Behaviour model have 3 characteristics: - We notice the trigger - We associate with the target behaviour - We are motivated + able Fogg Behaviour Model is a curve, implying that: 1. **High motivation** compensates for **low ability** 2. **Simple tasks** require **less motivation** (high ability compensates for low motivation) 3. **Without a trigger, motivation does not occur** Different types of design: - **Decisive** (strong, hidden) - **Coercive** (strong, apparent) - **Seductive** (weak, hidden) - **Persuasive** (weak, apparent)