Professor of AU Business School Bobir Odilov took part in SIBR 2023 Conference on Interdisciplinary Business and Economic Research, which was held in Tokyo, Japan, on 5-6 January 2023.
The event was organized by Society of Interdisciplinary Business Research (SIBR).
Mr Bobir Odilov presented the paper "Customer value creation in retail environment case: study based on Apple Retail Store".
In the recent years, retail stores sector has become exposed to the new conditions. Modern market has started to change rapidly due to the technological advancement and increase competition that has been driven by consumerism and globalization, the paper says.
In this dynamic market, for the retail stores the main focus has shifted towards differentiation and standing out among the competitors thus being able to protect their market shares. In the context of marketing, there was a considerable shift from mass marketing towards personalized marketing and making the customers value co-creators. This implies that retail store companies have started to include the customers in the value creation process, the paper notes.
Modern consumers are looking for the best products and services that would suit their needs. In the light of the increased consumerism, the companies are driven to diversify their products and services to stand out among the competitors, attract the consumer attention and generate consumer interest.
Right now the trend has shifted again where the customers are now evaluating products in a retail store, and then ordering the preferred product from an online retailer. The ubiquity of wireless connectivity and hand-held devices to access the Internet makes information about product availability and prices more readily available, and is further abetting this behavior.
These developments have led to an increased use of the retail stores solely as an information channel to establish definitively a customer’s best fit product. Such “show rooming” customers end up making their purchases online so that retailers, whose business models are predominantly based on shops or outlets view this trend as a threat to their bottom lines.
Therefore, majority of the retail businesses have been retrieving various ways to create a customer value recent times. This research will focus on the investigation of the customer value creation in the physical retail stores in the light of the growth in popularity of online retail channels.
Likewise, this research will focus on the investigation of the ways customer value may be created along with the protection of the standardized price level. The main focus will be placed on the case study of Apple retail store. Research methodology is based on the integration and investigation of the secondary data that is sourced from the professional and academic books, professional reports, academic journals and different professional databases as well as news reports.
The main findings from Apple case study have demonstrated that the company is focused on the creation of engaging and interactive experience within Apple stores. The uniqueness of Apple stores is based on the engagement of the customer in all Apple in-store processes. In fact, Apple management is focused on the development and management of the interactive platform for the customers to engage in trying the products and acquisition of knowledge about the products.
Apple stores are designed to interconnect with cognitive, behavioral and emotional aspects of consumer psychological state thus developing the interest for the consumers to come again to the stores.