Review of Business and Economic Literature vol:58 issue:3 pages:260-275
In the present study, we investigate the impact of the emotional and the functional component of customer experiences in a hedonic and in an utilitarian service context on customer satisfaction, the likelihood to recommend, loyalty and evoked emotions. A 2x2x2 experimental design was constructed in which different hypothetical scenarios describing company-customer experiences were evaluated by the respondents. The most important research contributions are the identification and the relative influence of the emotional and functional component in the customer experience. The results show that the relative effect of the functional and the emotional component on the experiences differs according to the context. A positive functional component of the experience is more effective than an emotional component in an utilitarian context whereas the emotional component of the experience is crucial in hedonic service contexts and rather limited in an utilitarian context. However, the functional component seems to be important also in a hedonic context. We also observe that the specific emotions evoked in each scenario are dependent on the emotional and functional component and on the service context. Our results suggest that in developing positive company-customer relationships careful monitoring of the functional and the emotional component of the customer experience is necessary.