Delighted customers in bakery stores : case study research to Dutch artisanal bakeries

Case Study Resea rch to Dut ch A rt isana l Ba ke ries

Au t hor: E.L. Voordijk BS c., UvA: 11071826, VU: 2504940

Su pervisor: Prof essor R.C.W. van de r Voort

Author: E.L. Voordijk BSc., UvA: 11071826, VU: 2504940

Supervisor: Professor R.C.W. van der Voort

Date: 12-08-2016

Abstract

The main question of this research is “how can customers’ emotional involvement explain customer delight at artisanal bakeries?”. This question is answered by a conceptual model, based on both existing and new knowledge. The model connects, customer’s emotional feelings, customer satisfaction, and customer loyalty with customer delight at bakery stores. Feeling delight engage consumers to a bakery, this delight feeling is driven by an extraordinary experience. The missing link in the conceptual model was what variables cause this extraordinary experience. The research in this thesis point out what variables cause this extraordinary experience. The method to find these variables included three steps. First, the population of Dutch artisanal bakeries was defined and categorized to select relevant cases. In the second place this initial list had to be verified, so more representative cases were analyzed. The reviews, complemented with comments, on corporate Facebook pages were close-coded, the initial list of variables was the code list. In the third place the final list of variables had to be verified by actual customers in a bakery. So a questionnaire was taken among customers of two bakeries. It turned out that every variable found by analyzing customer’s online comments was verified by the customers of both stores. So product, employee and store related variables independently cause an extraordinary emotional experience, leading to customer delight. Through theoretical and practical research this thesis present a conceptual model which is relevant for the current status of the theory, because it connects traditional marketing and retail theories about customer satisfaction and loyalty with a relative new theory about customer’s delight. Besides the theoretical exploration, this research does also have practical implications. For entrepreneurs it might very helpful to understand what kind factors they can manipulate in order to increase customer loyalty. By focusing on the variables identified in this research, baker entrepreneurs can keep their customers feel delight and stimulate them to be both loyal and satisfied. By increasing customer loyalty and satisfaction, the market share of artisanal bakeries can be stabilized and further recaptured.

Index

Abstract ... 0 1. Introduction ... 4 2. Theory-building ... 7 2.1 Emotional marketing ... 7 2.2 Customer experience ... 8

2.3 The effect of promotion on the emotional link between company and customer ... 10

2.4 The effect of price on the emotional link between company and customer ... 10

2.5 The effect of merchandise on the emotional link between company and customer ... 11

2.6 The effect of supply chain on the emotional link between company and customer ... 12

2.7 The effect of location on the emotional link between company and customer ... 12

2.8 Emotional feelings’ influence on customer satisfaction ... 13

2.8.1 Emotional feelings and store environment ... 13

2.8.2 Quality, emotions, and customer satisfaction ... 16

2.9 Customer satisfaction and customer delight ... 17

2.11 Conceptual model ... 18

3. Method ... 21

3.1 Research design ... 23

3.2 Sample selection ... 24

3.3 Method to define the independent variables ... 25

3.3.1 Literature-based variables ... 26

3.3.2 Entrepreneur-based variables ... 27

3.3.3 Customer experience-based variables ... 28

3.3.4 Initial list of independent variables ... 33

3.4 Sample selection to verify the initial variable list ... 35

3.4.1 Innovators ... 36

3.4.2 Followers: Large or small innovative bakeries, in either urban or rural areas, with online shops ... 37

3.4.3 Money-makers: Large, traditional bakeries in either urban or rural areas, with or without online shops ... 39

3.4.4 Classics: Small, traditional bakeries in either urban or rural areas, with or without online

shops ... 41

3.5 Method to verify the variable list ... 42

4. Results ... 45

4.1 Results of the netnographic analysis ... 45

4.2 Results of the questionnaire... 46

4.3 Connecting the results to the research question ... 49

5. Discussion ... 50

5.1 Interpretation of the results in relation to the main research question ... 50

5.2 Implications of the conceptual model ... 52

5.3 Limitations and further research ... 53

6. Conclusion ... 54

References ... 55

Appendix A ... 60

1. Introduction

Small artisanal bakery companies are a traditional segment of the Dutch market. Bread consumption is a key element of Dutch food culture, even though its popularity has been decreasing in recent years. Almost all artisanal bakeries are small to medium sized companies, the entrepreneur in these companies is almost always also the main baker. This group of entrepreneurs are a special kind because they combine running a business with a craftsmanship. This research might be very helpful for them because they do not always have the capacity nor expertise to focus on marketing. But they are still capable of attracting a lot of very loyal customers, this research is about variables that could be manipulated by those entrepreneurs in order to increase customer loyalty. That said, the national news recently announced that consumers have started to eat more bread again. In addition to bread, artisanal bakeries sell many regional specialties that are locally produced by bakers. Almost every city or village is home to a bakery. Some of these bakeries are part of a large corporation, but many are small companies with one production site and one shop. These small companies combine entrepreneurship and craftsmanship. This thesis focuses on these artisanal entrepreneurs and their customers. Why are consumers still loyal to local artisanal bakeries? It is important to note that artisanal bakeries are not the only providers of fresh bread; supermarkets also have in-store bread departments. And, since the introduction of supermarkets in 1946, customers have become accustomed to purchasing all of their groceries in a single stop. Over the years, traditional food stores (like bakeries, butchers, and greengrocers) have faced stiff competition from supermarkets. Market research shows that, when it comes to bread consumption, over the past decade, supermarkets have captured a larger market share. See Table 1.

Table 1. Market shares of bread, pastry, and chocolate consumption, across supermarkets, artisanal bakeries, and other retailers.

Today the Netherlands has about 1,800 artisanal bakery companies, while 50 years ago there were about 11,000 such bakeries. To survive in this difficult market, artisanal bakeries must focus on their strengths. The most important competitive advantage that artisanal bakeries have is a higher-quality product compared to breads sold at supermarkets. The quality of bakery products is strongly dependent on freshness: the fresher the bread, the crispier the crust, and the softer the interior. Artisanal bakeries have more of an ability to offer their customers higher quality products, because they do not have to transport these products cross-country prior to sale.

Bread and pastries sold at the supermarket are often produced at large industrial bakeries. At such bakeries, production processes are standardized, and personal touches are eliminated as much as possible. Bread’s freshness at the moment of purchase depends on how much time has passed since the bread came out of the oven. Bread sold at supermarkets is produced at least 24 hours before customers purchase it. Before bread can be sold in a supermarket, it needs to be transported, packed, and sliced. It is not possible to slice hot bread; the bread needs to cool down first, which takes a couple of hours. Breads sold at artisanal bakery stores do not need to be sliced or packaged prior to sale. So, bread produced for a supermarket needs to cover a much longer distance as compared to artisanal produced bread.

Artisanal breads are produced approximately four hours before sale, do not have to be packed before sale, and do not have to be transported. Thus, customers can buy much fresher and higher-quality breads at artisanal bakery stores. Another advantage of the artisanal baker over the supermarket is that artisanal bakeries have a more comprehensive assortment of products. Supermarkets offer customers only a basic assortment of breads and pastries. In contrast, artisanal bakeries often have more unique types of bread and pastries. In addition to selling a wide range of products, artisanal bakeries also give customers the opportunity to make personal contact with the baker/entrepreneur to ask for special, customized products. For example, a customer might request a miniature or an extra-large version of a certain product. The enterprise’s small size allows the entrepreneur to be flexible. If a number of customers ask for a certain product, he or she can easily add it to the inventory. The opposite is true as well – if a product is hardly sold, he or she can remove it. This flexibility stimulates the entrepreneur to create an assortment that meets his customers’ needs.

This thesis started with the question: Why do consumers remain loyal to bakers, even when they have to put extra effort into buying their bread at a bakery? This “extra step” is in conflict with current social standards that attempt to make everything easier, quicker, and more comfortable. Consumers need to make an extra stop, pay a parking fee, and wait in another line to buy their breads. And, according to micro-economic theory, consumers will always buy from a seller who offers acceptable quality at the lowest price. Artisanal bakeries are not less expensive than supermarkets, so there must be another factor that attracts customers to them. Customers need to pay a higher price for goods purchased at an artisanal

bakery than they would pay at the supermarket. But, consumers are frequenting these traditional bakery stores, so these small entrepreneurs are clearly offering something that is unique to their consumers. Of course, goods produced at local bakeries are of a higher quality than those produced at large industrial bakeries and sold at supermarket. But, in recent years, the quality of some supermarket breads has begun to approach the quality of artisanal products. So, another factor must be drawing consumers to artisanal bakeries. This study investigates whether emotional customer experiences can shed light on this phenomenon. Large food corporations, such as Heineken, Coca Cola, Corona, and Milka Chocolate, spend enormous portions of their marketing budgets on campaigns encouraging their target groups to become emotionally involved with their brands. Small artisanal companies definitely do not have similar resources to run comparable campaigns. But, they are clearly capable of emotionally involving their customers in their own way, and examining the variables that lead to this kind of relationship is of value. Thus, the main question of this study is:

“How can customers’ emotional involvement explain customer delight at artisanal bakeries?”

From a practical point of view, this is a very relevant research topic, because it can contribute to current knowledge regarding marketing at small companies. This is particularly true for small bakeries companies, whose market shares are declining. Any knowledge about their strengths could help them to retain their current market share, especially since craftman entrepreneurs must develop their own marketing strategies. Such small entrepreneurs often do not have the resources to hire professional marketers. This research will provide useful tips to help small entrepreneurs wisely interact with their customers. Furthermore, this research will also contribute to current knowledge on marketing and retailing. This study is unique in that it combines both retailing and marketing in one framework. To establish a proper research design, theory development is an essential part of the case study design (Yin, Fifth edition 2013). To that end, this paper first examines general theory to found out what the current literature status is. Using that as a starting point, three meaningful studies are then used to develop a conceptual framework. This theory-based framework leads to propositions that are the basis for the actual research design, as described in Chapter 3.

2. Theory-building

This theory-building section starts with an extensive theoretical review on emotional marketing, customer experience, and firm-controlled factors. It then turns its attention to three relevant studies, which taken as a whole, point to a gap in the literature and developing a conceptual framework.

2.1 Emotional marketing

Marketing has increasingly become a way to transform lifestyles and to affect as many aspects of the consumer’s personal life as possible. Companies adapt their products and marketing strategies to their target group’s personal needs and preferences, with the goal of involving potential consumers with their brands. Emotional marketing highlights a product or service’s symbolic meaning. Brands want their customers to feel special. Symbols help people interact with each other, and they remind people of their culture, rules, and beliefs. Commercials and other advertising channels focus on consumers’ emotional involvement. An example of a brand that has succeeded in emotional marketing is Harley Davidson. The brand represents not only motorcycles but also a way of living. See Figure 1.

Figure 1. A Harley Davidson rider it’s not a brand, it’s a way of life

http://www.froot.nl/posttype/froot/harley-davidson-rijders/ visited May 30, 2016

Emotional marketing, focuses on the relationship rather than on the actual transaction or product. This is in conflict with traditional marketing concepts, which highlight purchasing the product or service, and emphasize the transaction rather than emotional consumer experiences. Retail’s overall switch from transaction-based exchanges to relationship-based exchanges has triggered a change in the approach to reach consumers. Other market segments have seen similar change. The exchange has now an emotional background, shaped by symbolic attributes. The growing importance of emotional needs in society calls for new marketing concepts, and one of these is emotional marketing. This marketing concept’s goal is to identify an individual’s emotional needs and preferences through offering products. Emotional marketing focuses on the emotional link between the consumer and the company, which forms a new symbol in the consumer culture. For corporations, it is worth analyzing this process of emotional interaction, as it might be more critical than rational factors like technique, function, and price.

“Emotional marketing can be defined as, where management of emotional link between the company and the consumer (or other market players) becomes the key exchange-stimulating feature.”

- (Rytel, 2009)

This definition of emotional marketing refers to the “link between the company and the consumer,” and a relationship can explain this link. To understand emotional marketing, it is essential to be knowledgeable regarding the features of a relationship. Several scholars have described this process. One example is the five phases, as defined by Dywer, Schurr & Oh, 1987: awareness, exploration, expansion, commitment, and dissolution (Dywer, Schurr, & Oh, 1987). Another scholar developed a five-level model of relationship marketing, and each level is characterized by the degree of interaction between the entrepreneur and the consumer (Kotler, 1992). The five levels are shown in Table 2. For emotional marketing, the characteristics of relationship marketing are very important, since emotional marketing is based on a relationship with the consumer.

Table 2. Five levels of relationship marketing, according to Kotler, 1992. (Kotler, 1992).

More recently, scholars have found that emotional marketing does influence the customers’ attitudes. It acts as a predictor of customers’ thoughts, feelings, and reactions towards environmental events (Hakkak, Vahdati, & Sharifinasab, 2016).

2.2 Customer experience

It is immediately clear that emotions play a central role in ‘emotional marketing.’ In terms of the emotions related to shopping in a bakery, customers’ experiences are key. So, emotional marketing is very closely related to customers’ experience. To manage this experience, retailers must focus on their retail environments to shape their customers’ emotional experiences. They can influence their customers in several ways. Promotions and advertisements are the primary means of doing so, but price,

merchandise, supply chain, location, and many other factors are also important. Some of those elements are discussed in the following sections, with the focus on the customer’s emotional involvement at each stage of the retail process. Such emotional involvement often leads to a relationship, and when this relationship is ‘fed’ from both sides, it results in loyalty. This has been proven for the relationship between suppliers and retailers in grocery industries (Biong, 1993).

Other scholars have investigated the relationships among firm-controlled factors of price, promotion, merchandise, supply chain and location, customer experience, macro factors, marketing, and financial metrics. Figure 2 shows the organizing structure of influencing customer’s experience into a framework, as developed by (Grewal, Levy, & Kumar, 2009). Marketers will increasingly use emotional marketing tools, especially with the emergence of new technologies (Straker & Wrigley, 2016).

Figure 2. Organizing structure (Grewal, Levy, & Kumar, 2009)

It is noteworthy that all elements of the customer experience are closely related to one another, and all of these elements define the relationship between the entrepreneur and his or her customers (Grewal, Levy, & Kumar, 2009). The following section briefly discusses the elements of Figure 2. The first element of the framework is ‘Macro Factors,’ because these influence both retail customer experience and firm-controlled factors. Macro factors can be defined by macroeconomic factors, as well as political factors (such as fluctuations in the price of raw materials, governmental regulations, the unemployment rate, interest rates, and declining stock markets). When the economy is not in a healthy state, consumers consider potential purchases more carefully. Recently, several prominent retail corporations (e.g., V&D, Dolcis, Scapino, Halfords) closed their doors due to bankruptcy. However, this research will not take these macro factors into account, because they are comparable for all of the companies investigated. A superior customer experience results in higher customer satisfaction and higher financial metrics, because customers are willing to pay a higher price when they are satisfied. So, it is very important that

retailers provide their customers with pleasant shopping experiences. The following sections connect customers’ emotional experiences to the main factors controlled by firms.

2.3 The effect of promotion on the emotional link between company and customer

In general terms, a price promotion is a temporary discount on a certain product. However, there are many ways to promote products, and most bakery entrepreneurs promote one or more products a week. A meta-analysis on the effect of promotion on sales indicated a significant increase in sales after an item is promoted (Pan & Shankar, 2009) (Bijmolt, van Heerde, & Pieters, 2005). But, it is essential to realize that these studies solely focused on pricing and promotion. While many scholars have stated that promotion increases sales and overall profit, promotion cannot be isolated from other firm-controlled factors. Figure 2 shows a framework that connects all firm-controlled factors, and it is very important to keep this framework in mind (Grewal, Levy, & Kumar, 2009). Nevertheless, price promotion is a key driver of retail profitability (Bolton, Shankar, & Montoya, 2007). This is because when an entrepreneur sells an item at a small loss to himself or herself, but at a lower price than that offered by a competitor’s firm, it attracts customers. One key to retail success is to ensure that the store contains the right mix of promoted and non-promoted products, so that the business is profitable overall (Ailawadi, Beauchamp, Gauri, & Shankar, 2009). However, in food retail, small artisanal companies will never have the resources to offer similar promotions as supermarkets and large chains. The prices of individual products will be higher, even when they are promoted. However, the effect of these promotions on consumers is more powerful than are actual prices; it is all about customers’ perceptions. The manner in which a promotion influences a customer’s perception of the purchase decision depends on how the promotion is communicated (Kahneman & Tversky, 1979). Products at artisanal bakeries are almost always higher priced than bread and pastries at the supermarket, so, when bakery products are promoted, the reduction amount in euros per product is higher for the artisanal products. Research has shown that the same relative promotion seemed more attractive to consumers for high-price products than for low-price products (Chen, Monroe, & Lou, 1998). The effect of promotion on consumer behavior has been studied and is well documented. For a survey of key studies see (Blattberg & Neslin, 1989). However, researchers have paid little attention to whether sales promotions affect the emotional link between the company and the customer.

2.4 The effect of price on the emotional link between company and customer

The effect of price is an extension of the effect of promotion, as discussed previously. Both aspects play a dominant role in retail competition and are an important criterion for many consumers’ store choices. And, both aspects are related to how much consumers have to pay for a certain product. Setting the right price is a key retailing skill. When the price is too high, consumers will not buy the product, because they will be disappointed with the quality. But, when the price is too low, consumers will associate the product or service with low quality. To categorize a store as “low-priced” or “high-priced” is not as

clear-cut as it seems, because not every customer buys the same products. What one customer perceives as a high-priced store may be low-priced to another (Brown, 1969). Several scholars have suggested that retailers should have a certain mix of high- and low-priced products in their shops. The high-priced merchandise will attract loyal customers, and the low-priced products will attract new customers (Zielke, 2011). Also, as discussed in the promotion section, a popular retail pricing strategy is to accept losses on some items. This strategy draws more customers, which leads to higher sales and profits, because these consumers generally do not only buy the least expensive products (loss items). The best strategy in terms of profit is to focus on the entire product category rather than on one specific product or brand (Levy, Grewal, Kopalle, & Hess, 2004). In contrast to sales promotion, store prices are connected to emotional feelings like enjoyment, distress, or anger. Feelings about prices are also connected to the shame that one feels after buying something in a budget store (Zielke, 2011). So, there is a clear link between a store’s price level and customers’ emotions. The emotional component of a retail price has an important effect on the customer’s perception of value for money. But, as previously mentioned, these perceptions can differ across individuals and geographic locations. Bakeries in large cities are usually able to ask a much higher price than can bakeries in small rural villages. Retail price images are consumers’ subjective perceptions and can be defined as the, “buyer attitude towards price on the assortment level” (Nyström, 1970). It seems very clear that the price level evokes an emotional reaction from the consumer (O'Neill & Lambert, 2001). But, how does this emotion affect the relationship between a bakery store and its customer?

2.5 The effect of merchandise on the emotional link between company and customer

When it comes to merchandise, the most important questions deal with what merchandise and in what quantities. Getting the right merchandise in the right quantities to the right stores at the right time is perhaps the most difficult aspect of retailing. (Mantrala, et al., 2009) designed a framework to describe retailers’ decisions regarding merchandise choices. This framework is called Product Assortment Planning (PAP), and it summarizes the decisions a retailer must make to determine what products to sell. First, the retailer must control for his supply-side environment, including external factors like the economic situation and competitors’ strategies. Next, he should invest in both people and systems to make fundamental assortment category decisions. These investments will increase the likelihood of consumers’ demands being fulfilled. However, little knowledge is available about the composition of the assortment and how this affects consumers’ emotional feelings. The link between emotions and merchandise is not as well documented as for promotions and price, but (Mantrala, et al., 2009) examined the connection between certain emotions and the retailers’ assortment. For example, retailers adjust their assortments to changing customer demands. If a customer is looking for a specific product, and the bakery does not have that product, the consumer can be disappointed. It is also very important that the retailer adapt to the customers’ preferences. Those preferences differ across geographical locations and over time, as a result of satiation (McAllister & Pessemier, 1982). Because customers’

preferences can easily shift over time and location, retailers have to frequently adapt to demand. In particular, people can react emotionally when their product of r choice is out of. However, consumers may experience a large assortment as negative, as it can be overwhelming (Iyengar & Lepper, 2000). But, when the assortment is too narrow and the retailer cannot meet customers’ demands, it is very likely that the retailer may not be able to induce customers to return. A retailer will never be able to perfectly meet every consumer’s demands at all times. Stocking such an assortment would be unprofitable. The emotions that a consumer feels upon learning that his or her preferred product is out of stock (either temporarily or permanently) depends on whether the retailer has replacement items in stock, and, even more importantly, on whether the salespeople take the customer seriously in finding a replacement item. When the retailer has nothing comparable in stock or the salespeople do not react in an adequate manner, the consumer will be dissatisfied, and there is a considerably risk that he or she will switch to another store.

2.6 The effect of supply chain on the emotional link between company and customer

While all other discussed elements (price, promotion, merchandise, and location) focus on the front end of a retail company, supply chain management takes place at the back end. However, supply chain issues can greatly influence the front-end experience and can result in competitive advantages over other retailers. The most important supply chain issues are global sourcing and multichannel routes to market (Ganesan, Jap, Palmatier, Weitz, & George, 2009). Over the past decade, socially responsible entrepreneurship has become more important, and customers want to pay more for products made in a socially responsible manner (Wagner, Lutz, & Weitz, 2008). The bakery supply chain differs from the general retail company supply chain, because the products that bakeries sell are produced internally from raw materials. The manner in which bread and pastries are produced provides bakeries with their identity, and small and artisanal bakeries in particular can differentiate themselves from large, industrial bakeries in terms of quality. In contrast with other retail companies, bakeries are not that dependent on their suppliers, because the entrepreneur can determine the final characteristics of the product on his or her own. However, the choice of raw materials should correspond with the company’s story. For example, if a bakery claims to produce “honest” bread, they have to work with fair-trade products. When customers buy their breads and pastries at a local bakery, they expect that local ingredients will be have been used. So, the internal supply chain can deeply affect customers’ emotions, and modes of production and operation must be in line with the company’s external communications. Furthermore, products should be of sufficient quality and should match customers’ demands. A bakery’s ability to meet these criteria will lead to either satisfied or dissatisfied customers.

2.7 The effect of location on the emotional link between company and customer

Retail location has always been a popular research topic, and location can be described in terms of two key factors: proximity to customers and proximity to other stores. The second factor is especially

important when customers want to combine shopping at different stores (Brooks, Kaufmann, & Lichtenstein, 2008). Thus, it could be profitable for a bakery to be located close to another food store (e.g., butchery, grocery store), so that consumers could shop at various stores during a single shopping trip. Scholars that specialize in retailing always assumed that location is the key to a successful retail enterprise. But, does the geographical location also affect the emotional link between the entrepreneur and his or her customers? In addition to discussing store location in geographical terms, the focus could also be on the environment in the store itself. In food industry, the environment can significantly influence consumers’ emotional feelings. For example, a restaurant’s aesthetics, ambience, and employees considerably affect customers’ levels of arousal (Ryu & Jang, 2007). The human behavior and psychology behind customer perceptions of the physical environment are receiving an increased amount of attention (Donnovan & Rossiter, 1982). Over the past decade, hedonic consumption has gained a greater degree of influence on consumer’s shopping perceptions, as well as their experiences of pleasure and excitement (Wakefield & Blodgett, 1999)

2.8 Emotional feelings’ influence on customer satisfaction

The entrepreneur has the control over several factors in and around his or her retail store. These factors were discussed in the previous sections, which noted the presence of an emotional link between the consumer and the store. But, what are the exact factors that influence individual customers? From here forwards, the literature review specifically examines the connections among emotions, customer satisfaction, profitability, and customer delight. On the basis of these relevant articles, a theoretical basis for this case study is then constructed.

2.8.1 Emotional feelings and store environment

Ever since Aristotle, many scholars have emphasized how the concept of emotionalism can be applied in different research areas. Descartes defined emotions as series of automatisms and human behaviors that differ from cognitive processes (Descartes, 1989). Descartes is well known for his statement on dualisms. He claimed that there is a dualism between spirit and body and between intangible mind and brain, and that there is a separation between reason and emotion. During the Enlightenment, philosophers began to consider that emotions exist inside the materialism of the behavior that draw a distinction between human beings and animals. Another early scholar stated that emotions consist of a set of stages: stimulus, appraisal, and action readiness. Stimuli to initiate emotional reactions are events, agents, or objects. And, stimuli can result in either positive or negative emotional reactions. During the appraisal phase, a person subconsciously considers his or her feelings about a situation, and three types of emotions occur: satisfied/unsatisfied (as a reaction to events), approve/disapprove (as a reaction to agents), and appreciate/depreciate (reaction to objects) (Osgood & May, 1975). In the case of the example just discussed, the customer can react as either satisfied or unsatisfied.

Psychological literature recognizes that emotions influence every stage of decision-making in purchasing processes. Consequently, it is vital to understand which emotions an entrepreneur can influenced via marketing or product quality. Mehrabian and Russell made an environment psychology model to explain the influence of retail companies’ environments on customer emotions. See Figure 3 (Mehrabian & Russell, 1974). This model very clearly indicates the connection between an environmental stimulus and an emotional reaction. In reaction to the environment, consumers can feel pleasure, arousal, or dominance.

Figure 3. Model showing how the environment influences emotional states (Mehrabian & Russell, 1974)

With the help of the model provided by (Mehrabian & Russell, 1974), scholars presented a large-scale cross-sectional field study on the effect of store environment on consumer emotions (Sherman, Mathur, & Smith, 1997). This field study included many fashion store consumers to overcome the problems with laboratory studies. In contrast the moods that people experience in laboratory studies, naturally occurring emotional states are subtler. In later research (Donovan & Rossiter, Store atmosphere: An Environmental Psychology Approach, 1982) investigated whether environmental stimuli affect consumers’ emotional state even if they are not fully aware of it. They developed the Stimulus – Organism – Response framework. And, they found evidence that there is a relationship between consumer emotional states (O) and consumer buying behavior (R) (Donovan, Rossiter, Marcoolyn, & Nesdale, 1994). More recently, (Meirovich, Bahnan, & Haran, 2013) found that other environmental factors, like quality, also affect consumers’ emotional state. (Sherman, Mathur, & Smith, 1997) used the SOR framework to conceptualize the effect of the store environment on consumers’ emotional reactions. Figure 4 illustrates how the SOR model was adapted to retail shopping behavior.

Stimuli: In a retail setting (in other words, when a customer visits a certain shop), stimuli are external to the costumer and are managed through both marketing mix elements and other environmental inputs. Environment stimuli can be divided into three groups: social factors, design factors, and ambient factors (Baker, Grewal, & Parasuraman, 1994). Social factors refer to other people in the store, both employees and fellow customers. At SMEs, the entrepreneur has control over the salespeople and the other

employees who interact with consumers. Ambient factors relate to nonvisual elements of a store’s environment (e.g., light, music, smell). In contrast, design factors are all of a store’s visual elements (e.g., layout, color, cleanliness, space, etc.) To investigate all of these factors, 31 items were measured on an 8-point semantic-differential scale. These items were categorized as either Stimuli factors or Organism factors.

Organism: This term refers to internal processes and structures that intervene between external stimuli and an individual’s final actions, reactions, or responses. Emotions and psychological perceptions play a prominent role in this intervention phase. A customer’s emotional status can be conceptualized by the three emotional states: pleasure/displeasure, arousal/nonarousal, and dominance/submissiveness (Mehrabian & Russell, 1974). Early research on the effect of store environment on emotional status found out that dominance had only limited predictive value, and so (Sherman, Mathur, & Smith, 1997) did not include this emotional state in their model. Store environment will positively influence customers’ pleasure and arousal.

Response: As mentioned previously, response includes the final actions that a customer takes, as well as his or her attitude and behavioral reactions. Scholars defined four different outcomes that represent the possible responses to certain stimuli: (1) number of items purchased, (2) amount of time spent in the store, (3) actual amount of money spent in the store, and (4) whether the shopper liked the store environment. These four elements are positively related to customer emotions as pleasure and arousal.

The study found that social factors and design were positively related to pleasure, while ambience positively affected arousal. Thus, a theoretical basis exists that indicates that social, design and ambience factors influence pleasure and arousal.

(Sherman, Mathur, & Smith, 1997) suggested that further research could examined the impact of an additional factor on pleasure and arousal. The factor that was not included in their research was the effect of product or service quality on emotions and customer satisfaction. (Meirovich, Bahnan, & Haran, 2013) recently investigated whether customer emotions constitute an essential element of customer satisfaction. They wanted to explore the relationships among quality, emotions, and customer satisfaction in the consumption process. The next section discusses these in more detail.

2.8.2 Quality, emotions, and customer satisfaction

Customer satisfaction is the goal of every existing marketing strategy. This is because satisfaction is the most important factor that triggers consumers to return to the store after a shopping experience. Each of the previously discussed firm-controlled factors focuses on satisfying customer demand. To make a definitive statement regarding the effectiveness of emotional marketing in bakeries, the link between emotional experiences and customer satisfaction must first be more clearly defined. (Machleit & Mantel, 2001) investigated which emotional reactions affect shopping satisfaction. Their research examined factors controlled by the retailer, especially store atmosphere. They found that the emotions consumers experience during shopping affect shopping satisfaction, and the effect is even greater when the emotions are attributed to the store itself. In line with this study, (Machleit & Mantel, 2001) concluded that it would be in the retailer’s interest to encourage shoppers to attribute positive feelings to the store. More recently (Meirovich, Bahnan, & Haran, 2013) investigated the linkages among quality, emotions, and satisfaction in the consumption process. Their study provided new knowledge on the effect of product or service quality on customer satisfaction as well as customers’ emotional feelings. The literature lists over 300 emotional states (Laros & Steencamp, 2005). It is not possible to explore all of these items in a single study, so (Meirovich, Bahnan, & Haran, 2013) separated these emotions into different categories. Some emotions can be attributed to external factors. For example, anger can arise from poor service or a misunderstanding. Some other negative emotions, like shame or guilt, are mostly attributable to internal factors, while sadness is more likely to be attributed to circumstances beyond a provider’s control (Oliver, Satisfaction: A Behavioral Perspective on the Consumer 2nd edtion, 2010). As (Meirovich, Bahnan, & Haran, 2013) investigated the impact of product/service quality on affective responses, they focused on externally attributed emotions. This study also utilized the Mehrabian-Russell model, although in a modified form; pleasure was explained by the term “valence” and arousal by the term “intensity.” To measure quality, the researchers use two components of quality, quality of design and quality of conformance. Those two forms of quality can be found in every industry, product, or service. Design quality is the degree to which a product’s design (specification) fits customer needs

and expectations. Conformance quality is the degree of match between the features of a specific product and its specification.

To test their hypothesis, they designed a lab-based experiment in which university students watched video scenarios. (Meirovich, Bahnan, & Haran, 2013) found a significant relationship between the two quality dimensions in combination and customers’ affective responses, in terms of valence and arousal. Customers experienced the most positive feelings in the scenarios in which both forms of quality were the highest. In their recommendations, the scholars mentioned the implications for further research. They called for an analysis of the internal causes and organizational processes that generate customers’ satisfaction and affective reactions. This demand for further research is in line with the critique of (Kobylanski, 2012), who pointed to the general misconception that a company’s marketing department is solely responsible for creating customer satisfaction. It is especially important for small- and medium-sized enterprises to realize that, even though they do not have professional marketers, they can still influence customer satisfaction. In addition to focusing on the conventional marketing mix, entrepreneur must focus on product or service quality.

(Torres & Kline, 2013) made use of this knowledge to provide new service quality standards for the hospitality industry. Their research identified patterns in how hotels seek to delight their guests. Small companies in the hospitality industry are comparable to artisanal bakeries, because both industries are highly dependent on how consumers evaluate and experience their quality. So, it valuable to understand the factors that caused hotel guests to feel delighted about a certain company. In contrast to the relationship between emotions and satisfaction, the relationship between customer satisfaction and delight differs across industries. The next section describes the research of (Torres & Kline, 2013) in an in-depth manner.

2.9 Customer satisfaction and customer delight

(Torres & Kline, 2013) investigated common factors involved with positive guest experiences to gain insight regarding how to improve customer satisfaction. The reference letters written by individual guests, who expressed strong positive feelings about a certain hotel were the unit of analysis. It was proposed that customers feel the need to express themselves when they have an extraordinary experience, and the researchers asked what made an experience extraordinary in a manner that caused customers to feel delight. In all of the previously discussed research, customer satisfaction has been an important theme. However, what is the link between satisfaction and loyalty? Looking specifically at the hospitality industry, (Torres & Kline, 2013) tried to answer this question. A couple of years ago, researchers started examine customer delight in the hospitality industry, so as to identify factors that lead to customer delight. Customer delight has been defined is several ways, and it is the point at which an experience goes beyond satisfaction and becomes a pleasurable experience for the guest. It has also been defined as an emotion composed of joy, exhilaration, thrill, or exuberance (Kumar, Olshavsky, &

King, 2001). To determine the triggers of customer delight in hospitality industry, the researchers developed a codebook based on an extensive literature review. This codebook consisted of several facets of customer delight, derived from different articles. The facets were: joy, thrill, exuberance, professionalism, friendliness, and effective problem resolution. The letters the hotel received from their guests were coded based on an open codebook. While the researchers read the letter, new codes emerged and the codebook was modified. After, analyzing all guest letters a final codebook was developed. This codebook was then used again to reread and recode all letters.

When the content analysis was completed, the researchers counted the elements of the codebook. Taking care of guests’ needs was the most common theme. However, other themes were also found including: exceptional friendliness, professionalism of staff, employee goes outside the call of duty, problem-solving skills, and exceptional food and beverage. The less frequently mentioned attributes were: great lobby facilities, superior pool or entertainment facilities, employee use of guest name, culture permeates desire to delight, and creativity at delivery service. As discussed before, delight is a higher state of emotional arousal than customer satisfaction. For delighted guests, a hotel is more than a clean room and a place to sleep. Rather, the stay in the hotel becomes an experience. And, this is exactly what I propose attracts consumers to artisanal bakery stores.

The difference between hotels and bakery stores is that hotels frequently receive customer feedback, via letters or rating websites. No research has yet been conducted on customer delight in the food retail industry, especially bakeries. It would consequently be very interesting for both managerial and theoretical purposes to conduct a case study on this topic.

2.10 Conceptual model

On the basis of the literature review, a conceptual model can be proposed. This section briefly summarizes the literature to provide context for this conceptual model. The literature review started with a general overview of marketing, emotional marketing, and customer experience. Next, the focus shifted to the role of store-controlled factors that influence the emotional status of customers. Many factors were found to affect the emotional status of consumers, and factors that are not controlled by marketers (e.g. product quality) were even more important. The literature review then turned to the connection between emotional status and customer satisfaction, emotional involvement of customers with a certain store, leads to higher profits. Because satisfied customers are willing to buy more products for a higher price. Research also indicated that a higher state of customer engagement exists, customer delight. Several factors can cause delight, but it remains unclear what these factors are for Dutch artisanal bakery stores. The proposed connections among all of these concepts and factors are illustrated by the following conceptual model:

This conceptual model shows a couple of facets:

1. Stimuli in a store’s environment cause an emotional state of the customer consequently leading to a response. This response results in customer behaviors, such as spending more money, spending more time in the shop, and buying more products. This facet of the conceptual model was derived from the Mehrabian-Russell model and from (Donovan, Rossiter, Marcoolyn, & Nesdale, 1994). (Sherman, Mathur, & Smith, 1997) applied both theories to retail stores to determine the factors that influence customers’ emotional status and the behavioral effects of these emotional status which lead to a higher profit.

2. The emotional status of the customer affects his or her satisfaction. (Meirovich, Bahnan, & Haran, 2013) provided evidence that design and conformance quality influence customers’ emotional status. This emotional status in turn affects whether a customer is satisfied or dissatisfied.

3. For certain customers to feel loyalty for particular stores or brands, they must feel more than satisfied. (Torres & Kline, 2013) found this to be true for hotels. They stated that customers who undergo unexpected experiences feel more than satisfied – rather, they are delighted about certain hotels. This study focuses on this third perspective as (Torres & Kline, 2013) identified certain independent variables that caused hotel guests to have unexpected experiences. What are the variables that cause (potential) bakery store customers to have similar experiences? In the model, an extraordinary experience begins with emotional status, as that is where an experience originates. However, given the “unexpected” nature of the experience, customers Emotional states: Pleasure Arousal Satisfaction Delight EXTRAORDINARY EXPERIENCE Loyalty More…

…money spent in store …time spent in store …purchased items

P R O F I T

Emotional stimuli

Ambient, Social, and Design factors

Design and Conformance quality

feel an emotion greater than mere satisfaction. In other words, during the experience, unexpected factors influence the customer, causing him or her to feel delight.

4. Another facet is that, as a customer’s loyalty increases, the more he or she feels delight and the more loyal he or she is to a certain store or brand. The fact that the loyalty level is slowly rising shows that there is no clear-cut distinction. Customer loyalty can be defined as whether a consumer recommends the store to some else, whether he or she is willing to drive a particular distance to reach the store, whether he or she visits the shop frequently, and whether he or she is willing to share his or her experience with the rest of the world.

5. The last perspective is represented by the profit arrow. Satisfied customers spend more money and time, and they purchase more products. When customers are delighted about a store or brand, they spend even more money and time, and they purchase even more goods. Thus, profits increase when more customers feel delighted about a store or brand.

The conceptual model’s key element is the box showed with dashed lines. The variables in this box may lead to unexpected customer experiences. The goal of this study is to determine which factors belong in that box for artisanal bakery companies.

3. Method

As presented in the introduction artisanal bakeries attract customers, even though it takes more effort for them to buy products at an artisanal bakery store. Based on the literature review (chapter 2) it turns out that customers have a certain emotional experience in stores. This emotional experience will stimulate customer satisfaction and customer loyalty. The conceptual model, developed based on current literature presents the relationships between customer experience, customer satisfaction, customer delight and customer loyalty. However it remained unclear what variables influence these relationships, this research will identify the variables in order to facilitate further extensive, nationwide research to the effect of firm controlled factors on customer delight and loyalty. After identification of these variables entrepreneurs could respond to the outcome of this research by manipulating the relevant aspects in their company in order make customers delighted. Literature states that customer delight, which stimulates high customer loyalty, is the result of an extraordinary customer experience. The conceptual model in this research gives a theoretical basis for the relationships, however the problem is that it is still unclear what variables affect the relations found in the literature. So the goal of this research is to identify the variables influencing customer’s extraordinary experience in order to feel delighted. As said before it would be ideal when a nationwide quantitative research could be conducted to measure the effect of each variable. But due to restraint from the entrepreneurs by not letting me take questionnaires among their customers, another method had to be found, which will be discussed more extensively in the remaining of this chapter. This research will be a qualitative research because the available data does not allow quantitative analysis. In qualitative research two levels of measurement could be distinguished, a nominal and an ordinal scale. In nominal measurements the variables are only announced and classified. The first experiment of this thesis will be on nominal level of measurement because the goal of this first experiment is the description of the independent variables, based on current literature and an interview with a baker entrepreneur. The second type of qualitative measurement levels is the ordinal scale, this type of study allows to rank order, the data could be sorted out. The second experiment of this study allows a level of measurement on ordinal scale, the found variables in the first experiment will be sorted and investigated further. In the ideal situation when questionnaires would be taken the data should be non-dichotomous, because the reason why a customer is loyal to a bakery store cannot be declared by just two states. But because the available data collection is based on existing content, I could not ask the customers to pick a state from a spectrum. The level of measurement is still ordinal because it will be investigated whether the customers agree or not agree with the variables found in the current literature, by mentioning the variable in their comments. Because the netnographic analysis will result in dichotomous data, the questionnaire will be designed in a way that it results also in a dichotomous dataset, in order to promote internal validity.

Each variable identified by this study can be independently measured, controlled and manipulated by the entrepreneur in order to perceive customer delight. The conceptual model as visualized in section

2.10 shows the relationship between customer emotional state and customer delight. An extraordinary experience starts with the emotional state of the customers, according to current literature firms can control those emotional states through ambience, social interaction, store environment and product quality. The second aspect influencing customer delight is customer satisfaction, positive emotions like arousal and pleasure are related to customer satisfaction. Recent research in the hotel industry showed that customers can experience a higher form of satisfaction. This is called customer delight, (Torres & Kline, 2013) found out that customer delight is caused by an extraordinary customer experience. The goal of this research is to identify what independent variables can be manipulated by artisanal bakers in order to give an extraordinary customer experience. In this method-section the methodology to identify the independent variables related to an extraordinary customer experience will be discussed. This investigation focusses on highly satisfied customers to figure out what the reason behind their excitement is, so only positive related variables will be identified. To outline the used method, first the chosen research design will be discussed. In the second place the population of Dutch bakeries will be described in order to provide a complete view on the industry.

To find the independent variables influencing customer’ extraordinary experience, a 2 experiments will be done.

1. Operationalize an initial list of variables (Section 3.3) in three steps:

a. Literature-based variables, what variables were found in research done by (Torres & Kline, 2013)?

b. Entrepreneur-based variables, according to a baker-entrepreneur what bakery specific variables were missed by (Torres & Kline, 2013)?

c. Customer based variables, do actual customers agree on the literature and entrepreneur based variables?

After this first experiment an initial list will be available which had to be verified further in a second experiment. For this second experiment new cases will be selected based on the population as described in section 3.2.

2. Testing and verifying the initial list of variables

a. Selecting cases to cover the whole Dutch baker population in this experiment b. Netnographic analysis of all cases

c. Questionnaire among actual customers of one company.

This methodology guarantees external validity because the variables, which can be manipulated by the baker, are gathered through three different methods. In the first place through literature research, secondly by online content analysis, and thirdly with a questionnaire. Internal validity of the conceptual model and the research design is guaranteed because the method as well as the model was carefully build based on various theories and data sources. This research will result in reliable variables which

can be used to declare the effect of emotional experiences on customer delight and loyalty. The quality of the founding in this research allows to expand the theoretical model towards the bakery industry as well as including the independent variables causing an extraordinary experience.

3.1 Research design

The research methodology was developed on the basis of research by (Yin, Fifth edition 2013), (Eisenhardt & Graebner, 2007), (Kohlbacher, 2006), (Hsieh & Shannon, 2005), and (Kozinets, 2002). The considerations and emotional feelings that a customers must experience to feel delighted about a particular company, product, or service can be classified as a complex (social) phenomenon. This because every customer is a unique individual with a unique way of viewing the world. For the bakery industry, as well as other industries, it remains unclear what factors cause the extraordinary experiences that lead to customer delight. Customer delight, and the factors causing it are not well documented, especially not for the food industry. However, there is research done on customer satisfaction and customer experience in food industry, these theories suggests certain factors that also might be explanatory for delight among customers at artisanal bakeries. Adequate literature exists to propose the conceptual model, but not all elements of the model have been proven by the current literature. In particular, the box with dashed lines (independent variables that lead to extraordinary customer experiences), are not yet well-documented. If the overview, as presented in the conceptual model, can be generalized into theory, value would be added to the current literature. Because this research shed light on the general questions behind customer loyalty and satisfaction. Thus, the goal of this thesis is to identify independent variables that cause extraordinary experiences. To investigate this topic, it would be ideal to conduct a quantitative study that would offer insight on all of the different variables and on how much they influence extraordinary experiences and customer delight. However, the current literature does not provide enough independent variables on customer delight, nor has much been published on customer delight in food industries. Thus, the first task of this thesis is to identify these independent variables using a qualitative approach. An adequate number of well-documented variables and factors has not yet been identified. So it will not be possible to conduct quantitative research on what the effect of certain variables is on customer delight, because those variables first need to be identified. This thesis will be an exploratory study, because I want to identify as many factors as possible that influence customer delight. After these factors have been recognized, they can provide a basis for defining company issues, areas for potential growth, and alternative courses of action, as well as for prioritizing areas that require statistical research.

The design used in this thesis is a case study design. In case study research, the decision should be made between a single or a multiple case design. In a single case study, the company has to be comparable with other companies. For the subject of this study, artisanal bakeries, it is not possible to select one typical bakery because there are too many differences. A multiple case approach will provide more rigor

information about the current topic, however there is no distinction in method between single and multiple case studies according to (Yin, Fifth edition 2013).

3.2 Population

In case study research, cases should be selected based on their relevance, not randomly as in quantitative studies. To select appropriate cases, the population of Dutch artisanal bakeries should be carefully mapped.

To choose the right cases for the sample, the population of Dutch artisanal bakers should be split into categories. Unfortunately there is not a standardized, supported by theory, way to categorize Dutch bakeries, because hardly any research has been conducted on this industry. Also, the industry itself does not utilize a common categorization system. Thus, I should carefully describe and verify population features. This categorization used in this research is in line with the categorization that the Nederlandse Brood-en-banketbakkers Ondernemers Vereniging (NBOV) used in its questionnaire to examined the use of online applications among bakers. The Dutch bakeries were categorized based on several key features, so to define the population categories.

Those key features are:

- Rural (<50,000 citizens) vs. urban (>50,000 citizens) - Online shop vs. only physical shop

- Large company (more than two shops) vs. small company (less than two shops) - Innovative vs. traditional

These key features obviously do not capture all possible characteristics of Dutch artisanal bakery stores, but they are relevant to this research. For example, whether a bakery store is located in a rural or an urban area could influence customer loyalty. In a rural area, every small village does not have its own shops, and most of the time consumers need to drive to another, larger village to buy their groceries. Compared to an urban environment, consumers have fewer options to choose from. Thus, customers’ motivations to be loyal to a certain store can differ for bakery stores in rural versus urban area. The second relevant feature is whether a bakery has an online shop in addition to its physical stores. If a store offered this extra service it could indirectly influence customers’ feelings about it. And, the elements that affect customer satisfaction are different for online stores than for physical stores. So, this research focuses on customer experiences in physical stores. The third feature is the size of the company. Size influences customers’ experiences, because large companies (with more than three shops) often do not have a production bakery at every store. And, if the baker/entrepreneur does not have overview of all of his or her shops, this might affect customers’ experiences. The last relevant feature is whether a company is traditional or innovative. An example of an innovative bakery store is one that produces only sourdough bread instead of yeast breads. However, bakeries could also be innovative in terms of their

online appearance via use of social media. Traditional bakeries hold onto traditional production procedures and traditional shopping experiences, as they have for decades. It is important to mention that both innovative and traditional bakeries can be successful and greatly profitable. Innovative bakeries offer unique elements, while traditional bakeries offer high quality and a lengthy history.

NBOV, which has extensive knowledge about the whole field of bakery stores in the Netherlands, has verified these above-mentioned features. The features were used to classify Dutch bakeries into four global categories. I created these categories on the basis of my personal experience, gathered through years of experience within the industry and my recent internship at NBOV. Further input came from the monthly professional journal, Bakkerszaken, in which all kinds of baker/entrepreneurs can share stories about their stores, production methods, and other relevant experiences. Years of reading this journal gave me sufficient background knowledge to organize Dutch bakeries into these four categories and to place individual bakery stores into them. However, it is important to notice is that bakeries are classified in line with the categorization that NBOV used in its recent questionnaire.

Using the key features of Dutch bakeries, they will be classified into four categories: - Innovators: small, innovative bakeries in urban areas with an online shops

- Followers: Large or small innovative bakeries in either urban or rural areas with online shops - Money-makers: large, traditional bakeries in either urban or rural areas, with or without online

shops

- Classics: small, traditional bakeries in either urban or rural areas with or without online shops The sampling of relevant cases will be done based on the four categories described above, innovators, followers, money-makers and classics. Now that the categories have been explicated, the next section discusses the first experiment to develop an initial list of independent variables.

3.3 Method to operationalize an initial list of variables influencing customer’s

extraordinary experience

The conceptual model (Section 2.11) contains a box with dashed lines (independent variables). In this section will be described how these independent variables were identified. The first experiment had three steps:

1. Variables found in the literature, which could hold true for bakery stores, were identified 2. Literature-based variables were then discussed with a baker/entrepreneur and, if necessary,

adapted with industry specific variables.

3. Netnography, the variable list was verified from the customer’s point of view.

These steps are discussed in the following subsections. After those three steps, a list of variables is available for verification, which will take place in a second experiment. Section 3.3 discusses which

variables can be manipulated by a baker entrepreneur in order to provide his customers an extraordinary experience. Those variables derive from existing literature, an interview with a baker entrepreneur, and online content analysis. Table 3 summarizes all identified variables by scholars, customers, and entrepreneurs, and provide an initial list of possible variables for an extraordinary experience.

In the later sections of this chapter, 3.4 and 3.5, the initial list of variables will be verified.

3.3.1 Literature-based variables

The literature review addressed how (Torres & Kline, 2013) determined that customers can experience a more intense feeling of satisfaction, delight. According to them, this feeling of delight is caused by certain extraordinary experiences. Their research focused on hotels and analyzed customer reviews, and their study determined that several variables cause extraordinary experiences leading to delight. The variables which could be applied towards bakeries are, professionalism of employees, friendliness of employees, and employees who act outside call of duty. There were also other variables found but they were hotel-industry specific and not so relevant for bakery stores. Because the relationship between those variables and an extraordinary experience leading towards customer delight is already proven true these, employee related variables are most important.

. Professionalism of employees

This variable is about how much knowledge employees have about the topics regarding the service they provide, or the products they sell. This variable could be measured in bakeries by conducting questionnaires among employees regarding their knowledge about the product they try to sell and about production process through which the product has been produced. In bakeries customers appreciate it when employees do have a lot of knowledge about ingredients or way of using the product. In the setting of the research this variable was found, in the hotel industry, employee professionalism gave customers an extraordinary experience. The example was given that a certain employee had extensive knowledge about the city and advised the customers about the best spots in the city.

. Friendliness of employees

This variable has to do with how kind and friendly customers are treated. A very kind and open attitude resulted in an extraordinary experience among hotel guests. This variable could be measured in bakeries also with a questionnaire but this time among customers about how friendly they experience the attitude employees.

. Employees who acted outside call of duty

When employees do something unexpected based on their job description. An example of a hotel guest with an extraordinary experience as a result of an employee who acted outside his call of duty was that a hotel employee took the hotel guest on an unexpected city trip. This variable can be

measured by a questionnaire among employees to figure out what their opinion is on working outside their call of duty, and without being specifically paid for it.

Because variables found by (Torres & Kline, 2013) are mostly employee-related it might be valuable to discuss these variables with a baker-entrepreneur and add some industry specific variables.

3.3.2 Entrepreneur-based variables

The variables found by (Torres & Kline, 2013) were discussed with a baker/entrepreneur during a brief, informal interview. The goal of this interview was to find out what variables affect, according to entrepreneurs customer delight, to make them loyal. Based on his experience over the past decades he suggested that the following variables also might cause an extraordinary customer experience. should be taken into account as well:

. Wide range of products

According to the entrepreneur a wide range of products distinguishes an artisanal bakery store from the bread department at a supermarket. Stores with a wide range of products offers their customers a lot more choice, this increases the change that a consumer find exactly what he or she is looking for. According to the baker entrepreneur customers react very happy when a product they specifically ask for is part of the assortment. Besides customers do also like to have the space to try out some new products, a lot of choice stimulates them to visit the bakery store and stay loyal to it. The width of the product range could easily be measured by counting all to sell product.

. Experience of craftsmanship

Another factor that might influence customer delight according to the entrepreneur is the experience of craftsmanship. Especially in these days when it is very popular to know where food come from. The story behind a product becomes more and more important. In a bakery store the baker him or herselves shares the passion for the products with his or her customers. Experience of craftsmanship could be apparent from an open production space, where customers could see by themselves how the bakers produce their products. But also through digital information like short movies about the production of a certain product or photographs of the production process. This variable is measurable through observation of bakery stores, the presence of production employees and digital information should be taken into account.

. Freshness of products

According to the entrepreneur does is this one of the most important aspects distinguishing the supermarket from the artisanal bakery. Because it is very closely related to the most important variable, namely quality of the products, which will be discussed next. Real fresh products are hardly available