Marketing Cluster Seminar: Dr Matthew Chylinski
Even though positive experiences can improve sales (Holbrook 2000), designing retail experiences for customers who face significant transaction costs during decision making remains challenging (Iyengar and Lepper 2000). To address this problem, the article proposes a framework of compensatory experience binding where positive experiences, which may be incidental or outside of the decision process, compensate for the negative experience of transaction costs during decision making. We analyze data obtained from an elaborate experimental design by testing a panel dynamic system of equations according to a Bayesian (MCMC) approach. We find that the ‘Infusion’ of an intrinsically enjoyable but incidental activity, such as gameplay, with a principal-agent conjoint task improves the overall experience of the decision task and increases the accuracy of the decision making. From an academic perspective this highlights the compensatory nature of experience consumption, and suggests new insights into engagement through the psychological state of flow. Even more importantly, for a manager, our study implies a ‘plug and play’ approach to improved customer experience without the exhaustive redesign of an established marketing system.
Dr. Mathew Chylinski is a Senior Lecturer in Marketing at the UNSW Business School, University of New South Wales (UNSW), Australia. His research focuses on modelling customer decision processes, and applications of emerging technologies in consumer markets. He has published in leading academic journals such as Marketing Science. Together with Professor Ko de Ruyter (City University London) and Professor Ashish Sinha (University of Technology Sydney) he is the lead investigator on an Australia Research Council research grant investigating the role of Augmented Reality (AR) technologies in retail environments. In his former role as the Director of the behavioural research laboratory (the BizLab) he was instrumental in launching a world first dedicated facility for studying customer behaviour in contexts of AR technology. As technology rapidly develops, understanding its implications for customers as well as marketing through the new mediums it offers becomes increasing relevant due to the challenges it poses to existing business models and practices. Mathew Chylinski’s research is able to articulate those challenges and offer clear guidance to practitioners in how to overcome and profit from such emerging challenges.