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Jurnal Manajemen Teori dan Terapan p-ISSN: 1979-3650 e-ISSN: 2548-2149
Abstract
Objective: This study investigates the relationship between personalization and customer experience, with emotion
and cognitive as the components through which the result repeats purchase intention.
Design/Methods/Approach: This study uses purposeful sampling to enroll research participants based on the
research objective. A total of 429 respondents met the criteria, and the hypotheses were tested using Smart PLS 3
software with Partial least squares (PLS) structural equation modeling.
Findings: The results of this study confirm that customer experience is a significant attribute of consumer behavior in
the omnichannel context. Specifically, the main findings of our research indicate that emotions and cognitive processes
are influenced by personalization, a relationship that has been established in the online context. The findings also indicate
that the emotional and cognitive components of the customer experience can influence purchase intention.
Originality: Our framework is based on previous research and applies to a new construct with new phenomena.
Practical/Policy implication: Our finding demonstrates that a better customer experience in an omnichannel context
has a beneficial effect on repeat purchase intention, indicating that personalization might influence purchasing behavior.
In essence, our finding enables companies to understand the linked nature of variables and consequently prioritize
marketing initiatives in an omnichannel context.
Keywords: Personalization, Customer Experience, Emotion, Cognitive, and Repeat Purchase Intention
DOI: https://doi.org/10.20473/jmtt.v15i2.36236
Received: (May 30, 2022) Revised: (August 3, 2022) Accepted: (August 4, 2022) Published: (August 27, 2022)
Copyright © Rahmawati, Rois Arifin 2022
Published by Universitas Airlangga, Department of Management, Faculty of Economics and Business
This article is published under the Creative Commons Attribution 4.0 (CC-BY) International License. The full terms of this
license may be seen at: https://creativecommons.org/licenses/by/4.0/
Rahmawati & Arifin 301
1. Introduction
The evolution of technology has had a significant impact on marketing. Numerous businesses were transitioning
to digital technology, and Omnichannel strategy resulted from the transformation (Adivar et al., 2019., Zhang et al.,
2018). Omnichannel is a new strategy that connects the customer to the many accessible channels and comprehends
the customer touchpoints to immerse customer experience across all channels (Verhoef et al., 2015). Improvements in
omnichannel marketing have altered how businesses deliver their products and services to the consumer (Lee et al.,
2019; Pagani et al., 2019). Changing customer shopping habits and providing better service will be impossible without
breaking down barriers between businesses. (Shen et al., 2018; Shi et al., 2020).
The customer experience (CX) is the total customer interaction with a company. When a customer enters a
digital or physical space, their experience is comprised of multiple interaction points that can be either positive or
negative (Datig, 2015). The most recent perspective on customer experience is gaining traction among retailers and
market researchers, thereby establishing customer experience as a key success factor for retailers and a key driver of
customers' behavioral outcomes such as satisfaction, repurchase, and increased word-of-mouth (Klaus, 2013; Lemon &
Verhoef, 2016). In addition, prior research has emphasized how important it is to synchronize brick-and-mortar and
online consumer experiences to support customer journeys in an omnichannel context (Kumar & Reinartz, 2016; Leroi-
Werelds et al., 2014). Consequently, Homburg et al. (2015) argued that customer experience is the evolution of a
person's sensorial, cognitive, affective, and behavioral response along the journey touchpoints of pre-purchase, purchase,
and repeat purchase then evaluated. In addition, recent research has demonstrated that personalized experiences, such
as the increased use of smartphones, play a significant part in personalization initiatives in an omnichannel context (von
Briel, 2018).
The relevance of personalization has increased in the context of omnichannel due to the reality that different
channel integration can create a more tailored customer experience (Hänninen et al., 2018). Personalization can enhance
the playful customer experience in an omnichannel context. Since customers spend the same amount of time in this
context when content is personalized, they pay more attention to their favorite products (Lambillotte et al., 2022).
Personalization should provide customized services, products, and transactional environments to meet customer
journey requirements (Rahman et al., 2022). Certainly, Salonen & Karjaluoto (2016) focus on personalization research
should move toward the incorporation of psychological factors, like emotions, into the personalization process.
Finding by Bilgihan (2016) stated that companies should pay attention to the emotions of their customers.
Increasing customer emotion by creating a pleasant omnichannel environment creates a comfortable, enjoyable, and
amusing shopping experience (Tyrväinen et al., 2020). Positive emotions can influence various stages of the purchase
decision-making process (Gaur et al., 2014; Maguire & Geiger, 2015). Emotions also influence purchase intention. When
positive emotions arise, they induce repeat purchase intention (Berki-Kiss & Menrad, 2022).
Another component of customer experience is cognitive (Gentile et al., 2007). A cognitive results from the
internal processing of incoming stimuli, such as reviewing incoming information or evaluating incoming stimuli (Frow &
Payne, 2007). Cognitive play a crucial role in omnichannel integration, which necessitates that companies pay greater
attention, such as making good promotions, pricing strategies, customer data transactions, access to information, and
order compliance. It is possible to have the same logo, slogan, name, product category, price, description, and discount
information available on all channels if omnichannel is used (Gao et al., 2021). Rose et al., 2012 stated that online
customers interpret online stores' stimuli from cognitive and emotional perspectives. Thus, this study uses emotion and
cognitive components to represent customer experience.
Theoretically, past studies suggest that a customer's experience in an online store influences their intention to
make a purchase and their desire to make additional purchases in the future. (Carlson et al., 2015; Rose et al., 2012)
Customers with positive experiences are significantly more likely to intend to buy. (Chiu et al., 2014; Kim & Han, 2014).
If customers have a pleasant experience while buying online, they will be more likely to purchase from the same retailer
in the future, resulting in repeat purchase intention (Bilgihan, 2016). The prior study may involve positive and negative
emotional experiences about purchase decisions (Manthiou et al., 2020). In this research, we try to combine to what
extent cognitive customer experience affects the relationship between customer experience and repeat purchase
intention. Therefore, this study's purpose is to link Personalization to Customer Experience with emotion and cognitive
as the component that results in repeat purchase intention.
We have several contributions from this study that can influence other sectors, such that company point of
view, consumer behavior, and future research. First, the company can delve into how technologies work in an
omnichannel context and the role of personalization that can influence customer experience. Second, our study provides
a comprehensive point of view on online consumer behavior, which involves customer emotion and cognition to predict
customer repeat purchase intention. Third, our study contributes to marketing literature on customer experience in an
omnichannel context.
The structure of this paper is as follows: First, the article discusses previous research and gap research on
personalization, emotion, cognitive, customer experience, and repeat purchase intention. Second, we build a literature
review and then propose the hypothesis. Third, describe the quantitative analysis method. Fourth, discusses the result
in detail. Last, this paper summarizes the limitations of the research and further research recommendations.
302 Jurnal Manajemen Teori dan Terapan | Journal of Theoretical and Applied Management
Personalization
Although technology has created a greater physical barrier between businesses and their customers, it also makes
possible a diverse range of approaches to connection-building (van Osselaer et al., 2020). Utilizing technology, a business
notifies customers about product knowledge, delivery details, and order information, among other things (Roggeveen &
Rosengren, 2022). Consequently, Personalization and privacy concerns create an environment in which consumers'
engagement with personalized material has the potential to both grow and shrink (Aguirre et al., 2016). However,
personalization is still arduous to define. The ability to intuitively understand a customer's preferences, requirements,
and circumstances is essential for effective personalization. This understanding can be gleaned through a customer's
unique information, engagement, behavior, and transactions (Montgomery & Smith, 2009). Personalization, from a
business perspective, is the process of an organization's competence to gather, analyze, and use personal data to
proactively alter and recommend offers to boost personal relevance in both an internal and an external context.
(Morosan & DeFranco, 2016; Piccoli et al., 2017). Using personalization technologies, online retailers can track
customers' previous purchases; They can adjust what is displayed and how it is displayed based on this data (Zhang et
al., 2018). Personalization also allows for flexible transactions, more targeted marketing campaign and store websites,
and product references. (Kalaignanam et al., 2018). Furthermore, according to Choi et al. (2017), location-based pricing
information provides financial benefits and helps consumers make more educated decisions by providing customized
pricing information. In addition, Personalization's quality and benefits have been pointed to improve purchasing intention.
(Pappas et al., 2016). Personalization plays an important role in the digital era, especially in an omnichannel context,
because channel integration has enormous potential to enhance customer experience and provide more personalized
information (Hänninen et al., 2018). Personalization should provide excellent services, products, and transactional
environments to meet the needs in creating customer journeys (Rahman et al., 2022). Furthermore, Personalization can
enhance the playful customer experience of omnichannel context, and since customers spend the same amount of time
in this context, they pay more attention to their preferred products when content is personalized and engaging
(Lambillotte et al., 2022).
greater attention to integration aspects such as advertising, data transaction information, product and pricing strategy,
customer information access, and other compliance. In addition, omnichannel may provide product knowledge, brand
name, price, logo, and specific discount information consistent across all channels (Gao et al., 2021). This part of the
customer experience is related to functional information, such as the quality of the product or service and pricing
strategy, which assists customers in assessing products and deciding which ones to buy (Barari et al., 2020; Dennis et
al., 2014). Rose et al. (2012), customers of online retailers respond to the stimulus they get in two ways: cognitive and
emotional. In another hand, Salonen & Karjaluoto (2016) suggested using psychological components like emotions and
cognition in personalization research. From this standpoint, the following hypotheses are presented for testing:
3. Method
This study can be classified as exploratory research with a quantitative approach. This study aims to investigate
and examine whether personalization influences customer experience with cognitive and emotion as a variable, thus
affecting purchase intention. We established the following inclusion criteria using a survey questionnaire as the primary
data collection tool. We used several criteria, which we determined based on our research objectives. Thus, the
following inclusion criteria were established: (1) they must be at least 17 years or above, (2) living in Indonesia, (3) they
must have a monthly income, and (4) they must have their own mobile devices with internet connectivity. Each
construct's items were answered on a five-point Likert Scale (5- Strongly Agree, 4- Agree, 3–Neutral, 2- Disagree and
1- Strongly Disagree). Due to the pandemic, convenient sampling was used to get the potential respondents. Purposive
sampling was used in which enrolled research participants determined the characters based on our research objective.
A total of 478 respondents were gathered in this study. Out of 478 respondents, 447 completed the survey question.
However, only 429 respondents were classified as valid respondents that meet with criteria. The sample was classified
by middle social economic with 79,1% and upper social class with 20,9%. Moreover, this study follows males 38,6% and
females 61,4% in which spread over the city in Indonesia such that Malang, Jakarta, Surabaya, Banyuwangi, Madura,
Lampung, Jambi, Bali, Kalimantan, NTB, Maluku, Papua Etc.
The hypotheses were tested using Smart PLS 3 software. Partial least squares structural equation modeling was
chosen because this study focused on predictions rather than theory testing. PLS is also beneficial when there is a dearth
of applicable theory. PLS is preferable when the model specification cannot be assured. Additionally, PLS makes fewer
assumptions regarding data distribution, and this flexibility permits formative and reflective constructs within a single
model. We assessed the measurement and structural models in this study separately. First, the average variance
extracted (AVE) measurement model was evaluated, and then the composite reliability was examined. The subsequent
step was to examine discriminant validity using Fornell and Lacker criterion. The second step was an evaluation of the
structural model to test the hypotheses regarding the path coefficients of the structural model and the bootstrap analysis.
acceptable. In addition, the CR ranged from 0.878 to 0.918, which is consistent with the value proposed by Hair et al.
(2014), who argued that the AVE should be greater than 0.5.
After completing the convergent validity test, the upcoming step was to examine the discriminant validity. Based
on the prior literature, Fornell & Larcker, 1981 utilized this test. The square root of AVE (diagonal) for all reflective
constructs is greater than their correlations (off-diagonal), as displayed in Table 3
Cognitive 0.855
Alternately, Henseler et al., 2015 suggest using the Heterotrait-Monotrait (HTMT) ratio of correlations to
double-check for the validity of the discriminant term. Due to the reliability of the power methodology used in the
present investigation, the discriminant validity was also tested using the same method. The rule of thumb for the HTMT
test is whether or not the HTMT number is more than 0.85. Consequently, it suggests that the measurement model
has adequate validity and discriminant validity. The fact that the square root of HTMT is greater than 0.85, as shown in
Table 4, implies that the validity and discriminant validity of the measurement model is appropriate.
The recent study estimated the structural model's path coefficients and used bootstrap analysis to determine
statistical significance. As shown in Table 6, the relation between personalization and emotion is statistically significant,
with a t statistic of 14.194 and a significance level of 0.00. Personalization is statistically related to cognitive with a t
statistic of 17.51 and a significance of 0.00. The t statistic for emotion's relationship with repeat purchase intent is 8.372,
and the significance level is 0.000. In addition, cognitive has a statistically significant relationship with repeat purchase
intention, measured by a t statistic of 5.62 and a significance level of 0.000. Therefore, we were accepted for H1, H2,
H3, and H4; the results can be found in table 6.
4.3 Discussion
Today's consumers have access to a vast array of options for searching, comparing, purchasing, and acquiring
goods and services in an online context. The convenience and pleasure of online shopping significantly alter the customer
experience. Study about customer experience has always been an important research topic in marketing, given that each
customer has unique shopping experiences. When omnichannel became the new standard and transformation strategy
in the marketing context, companies competed to provide superior customer service. This study's objective was to
connect Personalization and Customer Experiences with emotion and cognitive components resulting in repeat purchase
intent. While earlier research focused mostly on narrow retail context and single studies such as in online stores or
Rahmawati & Arifin 307
shopping via mobile apps, we established a study environment focusing on the omnichannel experience as a whole. The
customer research results in Indonesia provide theoretical and managerial insights on the effects of personalization on
the Customer Experience in terms of emotion and cognitive constructs, as well as their impact on the likelihood of
repeat purchases.
Generally, our findings indicate that customer experience is the main component of omnichannel consumer
behavior. Ou & Verhoef (2017) assert that customer experience is the most significant assignment of consumer behavior
in omnichannel environments. In particular, the main findings of our study indicate that emotion and cognitive are pushed
by personalization relation has been discovered in the online context. Customers fancier personalized deals or ads
tailored to their activity (Bilgihan, 2016; McLean et al., 2018). They are interested in relevant promotional information
under personal preference. These findings are similar to the previous study by Tyrväinen et al. (2020). This finding is
similar to a previous study which concluded that the effect of personalization is marginally stronger in an omnichannel
context. In the last stages of development, personalization brings flexibility to transactions, more focused banner
adverts, store websites, and product references (Kalaignanam et al., 2018).
The findings indicate that the positive impact of emotion and cognitive components can influence the likelihood
of future purchases. Customers with positive emotions are more likely to consider a store for future purchases and
returns. When customers felt at ease and welcomed in a store, they are more likely to make future purchases and
recommend the store to others. Consequently, the results support previous findings regarding the relationship between
customer experience and purchase intention (Dennis et al., 2014). The previous literature argued that customer
experience in an online context could influence consumer purchase intention and repeated purchase intention (Carlson
et al., 2015; Rose et al., 2012). Many scholars also mentioned that a significant direct correlation exists between customer
experience and purchase intention, as shoppers recall their pleasant experiences, and online shoppers who feel flow are
more likely to repurchase from a similar store. (Bilgihan, 2016; Chiu et al., 2014; Kim & Han, 2014).
5. Conclusion
Digitalization fundamentally impacts every aspect of our daily lives, and it may alter the essence of individuals and
the environment. This study aims to establish a connection between Personalization and customer experience, with
emotion and cognitive components resulting from repeat purchase intention. Our findings confirm that customer
experience is the main component of consumer behavior in an omnichannel context. In particular, key findings of our
research indicate that emotion and cognitive are driven by personalization has been established in the omnichannel
context. Customers prefer advertisements or promotions that match their activity's environment. They are interested
in promoting product information pertinent to their personal preference. The findings indicate that the emotion and
cognitive components of customer experience can influence the intention to purchase again. Customers with positive
emotions are more likely to consider a store for future purchases and returns. When customers felt at ease and
welcomed in a store, they are more likely to make future purchases and recommend the store to others. Consequently,
the results support previous findings regarding the relationship between customer experience and purchase intention.
Several companies are currently piloting (both successfully and unsuccessfully) various omnichannel customer
service initiatives, such as mobile Apps, clicking and collecting concepts, delivery of your product at home, and cashless
stores. Our findings have three primary managerial implications for improving customer experiences in an omnichannel
context. First, to improve the customer experience, one should create personalized advertising and promotional
information. Secondly, inducing a positive emotion during the customer's journey through the channel can also increase
their intention to purchase again. With eye-catching sentences, a sense of color, and a joyful demeanor, a company's
promotional content should be creative to enhance the environment's coziness. Furthermore, the third cognitive
adequate clinches purchasing behavior by generating new ideas, which can be inspirational for customers if they have a
pleasant shopping experience. In addition, even though the empirical emphasis was centered mostly on personalized
endowment and advertising, Companies should actively seek innovative ways to create the perception of personalization;
this can take a variety of ways, such as leveraging consumer data to deliver personalized information about purchases.
This study has certain drawbacks that can be addressed in subsequent research. In addition, the degree of
personalization was evaluated using items regarded as particularly personalized advertising. For future research, it would
be essential to include consumers' perspectives on personalization across retailing contexts, such as website stores,
mobile apps, and social media channels for omnichannel context. In the meantime, the scope of the study in Indonesia
was limited to Indonesian customers, so the results cannot be generalized to other populations worldwide. To confirm
the other dimensions of customer experience, it is recommended that future researchers conduct similar studies on a
larger scale, incorporating multiple nations.
Acknowledgement
The authors would like to thank the anonymous referees for their useful comments, which allowed to increase the value
of this article.
Author Contribution
308 Jurnal Manajemen Teori dan Terapan | Journal of Theoretical and Applied Management
Author 1: conceptualization, writing original draft, data curation, formal analysis, investigation, methodology.
Author 2: review and editing, writing review and editing, validation, visualization.
Financial Disclosure
This article is not funded or related to any funding agency.
Conflict of Interest
The authors declare that the research was conducted without any commercial or financial relationships construed as a
potential conflict of interest.
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