KATHMANDU HOLDINGS LIMITED CUSTOMER EXPERIENCE MODEL ANALYSIS BY

KATHMANDU HOLDINGS LIMITED CUSTOMER EXPERIENCE MODEL ANALYSIS BY BINH NGUYEN POSTGRADUATE DIPLOMA INBUSINESS APMG 8119: DIGITAL ENTERPRISE Semester 2, 2018 >>APMG 8119: DIGITAL ENTERPRISE

BUSINESS BACKGROUND >>APMG 8119: DIGITAL ENTERPRISE Source: Kathmandu FY 17 Annual Report

ANALYSIS OF THE CONSUMER EXPERIENCE MAP Source: Jin & Park, 2006 >>APMG 8119: DIGITAL ENTERPRISE

FINDINGS OF CONSUMER, EXPLORING THEIR EXPERIENCE >>APMG 8119: DIGITAL ENTERPRISE

COMPARISON OF THE KEY FINDINGS AND REAL VIRTUAL EXPERIENCE Attribute Key Findings Real Virtual Experience Merchandise Kathmandu’s website group its wide variety of products in categories and sub-categories for easy flow. Each product contains details of size, color, how to use, etc. Respondents all agree that Kathmandu website provided details of product information and highlight the importance of merchandising when browsing. Order Fulfillment Kathmandu’s website provided clear information and delivery time and fee. Low online respondent highly rated the error-free delivery and ordering of Kathmandu Website. Security/Privacy Helps to increase trust and satisfaction Kathmandu’s website used Paypal for payment, unsure about the privacy protection via credit card payment. Respondents highly appreciate the high level of security and privacy in Kathmandu website and considered this is of an importance attribute to increase trust Communication Tailor communication messages based on consumer purchase experience Kathmandu website provided many travel tips for customers, and having a virtual staff to respond to specific customer enquiries. Respondents agree that they enjoy viewing the record of purchase or receiving emails related to their desired products. Virtual staff is very helpful as well. Promotion Critical in building trust for low online purchasers. Online sale deals are available on website. Respondent enjoy promotion, and low online respondent advised that they would definitely make further purchase once there are good online deals. Web design Critical in building trust for low online purchasers. We can view products at different angel but unable to enlarge. Respondents agreed that impressive web design, fluent flow of website functionality are important in building their customer trust in Kathmandu website. Trust Agree that trust precede satisfaction , then loyalty. Satisfaction Loyalty >>APMG 8119: DIGITAL ENTERPRISE All respondents agree that once they have a trust with the brand, they will feel satisfy and become loyal to Kathmandu products.

THEORETICAL AND MANAGERIAL IMPLICATIONS Theoretical Implications • The result confirmed that merchandising is the most important attribute contributing to the trust and satisfaction of consumers, followed by order fulfilment and security/privacy. • The research confirmed the literature that low online purchasers take into consideration website design, order fulfilment, promotion as the most critical attributes in building consumer’s trust. On the other hand, frequent online customers thought that merchandising is the key determinant. • The research confirmed that Security/ Privacy are key attributes in building trust and satisfaction on both groups of customers. • The research confirmed the literature that trust will precede satisfaction and eventually loyalty. >>APMG 8119: DIGITAL ENTERPRISE Managerial Implications • Continuously enhance website functions to catch up with ongoing trends of the digitalisation, such as to enlarge product picture, rotating products. • Recommended for courier signature delivery. Kathmandu has been set in customer’s mind as a brand with sustainable and quality product, however, its price is also high compared with competitors in the market. Therefore, Kathmandu could attract this type of customers by providing free delivery for order within Auckland or pick up at stores. • Each customer might have different needs and wants, so Communication messages should based on consumer’s purchase experience to build trust and gain satisfaction. • Announce Privacy Act or how customer’s information is protected at payment stage.

>>APMG 8119: DIGITAL ENTERPRISE