Customer Experience Management: Underexplored Instrument for Customer Transformation

Abstract

Purpose of the article: The purpose of this article is to identify the role the customer experience plays in the transformation of the customer and to develop a theory that brings together related concepts in order to position the phenomenon of customer experience in the macromarketing context.Methodology/methods: The grounded theory development approach is based upon the sequential search and content analysis of the research papers acquired primarily from Scopus and Web of Science databases and by the process of citation chaining.Scientific aim: The aim of this article is to identify customer experience related concepts and relationships between them to lay the foundation for empirical research in the area of customer experience and transformation management.Findings: The research points out to the significant role of the customer experience in the transformation of the customer and therefore to the necessity to approach marketing initiatives to customer experience management thoroughly to achieve the desired marketing results, but also responsibly and ethically to promote growth not the degradation of the society.Conclusions: The cycle of the customer transformation as outlined through the conceptual model contains weak spots which can provide free space for negative effects of the company’s outputs on the customer. The trend of digitisation and digital products can significantly amplify this possibility and increase the overall negative effect. From another standpoint, several problematic spots can cause difficulties for companies intentionally trying to transform the customer through their outputs, namely intent-result gap, reality-perception gap, single-part gap, and experience-memory gap.Scientific research in this area might support the effectiveness of marketing initiatives, increase transparency in the field of customer experience and transformation, and lead to increased customers’ well-being, long-term happiness, life satisfaction, and quality of life.

Full text

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TRENDY EKONOMIKY A MANAGEMENTU
TRENDS ECONOMICS AND MANAGEMENT
ISSN 1802-8527 (Print) / ISSN 2336-6508 (Online)
2021 37(1): 43–60
DOI: http://dx.doi.org/10.13164/trends.2021.37.43
Customer Experience Management: Underexplored
Instrument for Customer Transformation
David Havíř
Abstract
Purpose of the article: The purpose of this article is to identify the role the customer experience
plays in the transformation of the customer and to develop a theory that brings together related
concepts in order to position the phenomenon of customer experience in the macromarketing
context.
Methodology/methods: The grounded theory development approach is based upon the
sequential search and content analysis of the research papers acquired primarily from Scopus
and Web of Science databases and by the process of citation chaining.
Scientic aim: The aim of this article is to identify customer experience related concepts and
relationships between them to lay the foundation for empirical research in the area of customer
experience and transformation management.
Findings: The research points out to the signicant role of the customer experience in the
transformation of the customer and therefore to the necessity to approach marketing initiatives
to customer experience management thoroughly to achieve the desired marketing results, but
also responsibly and ethically to promote growth not the degradation of the society.
Conclusions: The cycle of the customer transformation as outlined through the conceptual
model contains weak spots which can provide free space for negative eects of the company’s
outputs on the customer. The trend of digitisation and digital products can signicantly amplify
this possibility and increase the overall negative eect. From another standpoint, several
problematic spots can cause diculties for companies intentionally trying to transform the
customer through their outputs, namely intent-result gap, reality-perception gap, single-part
gap, and experience-memory gap.
Scientic research in this area might support the eectiveness of marketing initiatives, increase
transparency in the eld of customer experience and transformation, and lead to increased
customers’ well-being, long-term happiness, life satisfaction, and quality of life.
Keywords: customer experience, transformation economy, ethics, macromarketing, positive
marketing
JEL Classication: M31, D91

David Havíř: Customer Experience Management: Underexplored Instrument for Customer Transformation
44
1. Introduction
The marketing concept of the customer ex-
perience has been in the academic and man-
agerial spotlight for more than two decades,
but its roots can be traced back to the works
of Abbott (1955). As one of the milestones in
terms of customer experience knowledge de-
velopment may be considered the research of
Holbrook and Hirschman, whose work was
focused on the consumption experience (e.g.
Hirschman, Holbrook, 1982; Holbrook, Hir-
schman, 1982; Hirschman, Holbrook, 1986).
In 1989, Thompson et al. (1989) called, di-
rectly in the title of the article, for putting
the consumer experience back into consu-
mer research. In 1992, Kerin et al. (1992)
published a paper on the store shopping
experience. In 1993, Arnould, Price (1993)
published their often-cited paper on extra-
ordinary service experience, while Mano,
Oliver (1993) addressed the structure and
dimensions of the consumption experience.
In 1994, Carbone, Haeckel (1994) published
a practically oriented paper called “Enginee-
ring Customer Experience”, which is consi-
dered as the next signicant milestone in the
eld of customer experience. At the turn of
the millennium, Pine, Gilmore (1998) pub-
lished the paper “Welcome to the Experience
Economy” and the book “The Experience
Economy” (Pine, Gilmore, 1999), and Hol-
brook’s colleague Schmitt (1999a) published
the paper “Experiential Marketing” and the
book with the same name (Schmitt, 1999b).
These four inuential works published wi-
thin just two years created a signicant mi-
lestone for customer experience phenomena
starting the two decades of intense research
in the eld. Twenty years ahead and Becker,
Jaakkola (2020, p. 637) come with another
revolutionary non-reductionist denition of
customer experience: “non-deliberate, spon-
taneous responses and reactions to particular
stimuli”, which De Keyser et al. (2020) con-
sider practically unhelpful while rephrasing
it as “customer experience is everything”.
Just as the increased scientic and man-
agerial focus on the marketing concept of
customer experience with the wider accep-
tance of its name can be dated to the period
of the mid and late 1990s (Carbone, Haeckel,
1994; Pine, Gilmore, 1998; Schmitt, 1999a),
the same applies to the term “user experi-
ence” in the eld of human-computer inter-
action (Merholz, 2007). While the customer
experience can be rephrased as the experi-
ence of the customer of a certain company,
the user experience then as the experience
of the user of a certain good, therefore the
subordinate concept of the superior concept
of the customer experience (Salazar, 2019).
In this sense, the customer can have dif-
ferent roles depending on the situation and
context in which he nds himself during his
customer journey, for example, a user hav-
ing a user experience when he interacts with
the good, a buyer having a buyer experience
when he buys goods or services, a complain-
er having a complainer experience when he
tries to solve the problem on the customer
line, etc. (Lemon, Verhoef, 2016). All these
subordinate types of experience result from
the interaction between the customer and the
stimuli that were or were not intentionally
designed by the company to inuence the
customer’s experience and his resulting be-
haviour (De Keyser et al., 2020).
This research paper builds on the previous
research by the author (Havir, 2020) on ex-
perience economy and transformation econ-
omy (Pine, Gilmore, 1997, 2011), where the
links between human perception, human
needs fullment, human resources, quality
of life, design, marketing metrics, and the
experience, considered from the perspective
of psychology and philosophy, are hypothe-
sized and continues in the multidisciplinary
research with the aim to establish the links
between other possible concepts related to
this topic to present the broader perspective
on the customer experience phenomenon, its
antecedents, and consequences within the
elds of macromarketing and behavioural

David Havíř: Customer Experience Management: Underexplored Instrument for Customer Transformation
45
economy. Second, this research is based on
the direction of positive marketing (Gopal-
das, 2015; Mittelstaedt et al., 2015; Scott
et al., 2014).
2. Methodology
This research paper follows the grounded
theory development approach (Strauss, Cor-
bin, 1990). The initial general question for
this research is “what role the customer ex-
perience plays in the transformation of the
customer“, as Pine, Gilmore, (2011) argue
that the customer experience is just the tem-
porary evolutionary step of the economic
oering which will be followed by the nal
step of the economic oering – the transfor-
mations and which will be delivered through
the transforming experience during the era of
the transformation economy.
The theory development is based on the
analysis of the secondary sources, speci-
cally scientic articles, whose collection was
primarily conducted in the scientic data-
bases Scopus and Web of Science, but not
limited to as the citation chaining process
was used as well. The literature search and
consequent scanning, skimming and con-
tent analysis (Erlingsson, Brysiewicz, 2017)
were conducted sequentially and iteratively,
until the initial and emergent concepts and
their relationships were further supported by
the literature or discarded by the lack of sup-
port through the process of open, axial (the-
oretical), selective coding, and concurrent
diagramming (Strauss, Corbin, 1990, 1998).
The supported concepts with the list of
selected (to keep the paper of reasonable
length) supporting sources and paraphrased
excerpts can be found in the next chapter
Theoretical Framework, while the resulting
conceptual model with hypothesised relati-
onships and supporting sources is placed in
the following chapter Results. The developed
model laid the foundation for the discussion
in the chapter Discussions, and the avenues
for future research, that can be found by the
end of the chapter Conclusions.
3. Theoretical Framework
This section contains an overview of the in-
dividual concepts which emerged from the
iterative literature search and analysis toge-
ther with selected excerpts from the litera-
ture sources related to those concepts which
were the subject of the process of coding and
became a foundation for the resulting con-
ceptual model presented in the next chapter
and further discussion.
Figure 1. Research process visualisation. Source: Own processing.

David Havíř: Customer Experience Management: Underexplored Instrument for Customer Transformation
46
3.1 Design (C8)
The concept of the design, more precisely
the design process is the key activity of the
customer experience management, the part
of the company’s strategic marketing, as is
the user interface design inseparable from
the user experience design. Through the
design of the stimuli, the company is able
to inuence one of the variables from the
customer experience equation. In the nal
conceptual model, the design represents the
smallest part of the process that aects the
perceptible form of the stimulus.
3.2 Stimulus (C1)
The stimulus concept represents everything
a customer consciously and unconsciously
perceives and inuences his behaviour fur-
ther aecting the company. This denition
respects the non-reductionist approach in
the eld of customer experience but points
to the innite possibilities for dierentiation.
The stimulus is the key variable in the cus-
tomer experience equation and can be found
for example as the key element in the stimu-
lus-organism-response and the other models
of perception. All the stimuli are dened by
their attributes and from the interaction point
of view of their aordances.
3.3 Perception (C2)
The concept of the perception represents the
most elementary process of the individual’s in-
ternalisation of the stimulus within an (inter)ac-
tion. The perceptual process cannot be descri-
bed precisely as it is very variable, but in this
study, the concept encompasses miscellaneous
sequences and cycles consisting of the sensory
collection, sensory transduction, cognitive pro-
cessing, aect generation, and projection into
the consciousness and unconsciousness.
3.4 Experience (C3)
The experience is the concept based on the
cumulatively associated percepts which are
the continuous results of the perception pro-
cess which can be, in other words in this con-
text, called experiencing.
Table 1. Selected example excerpts related to the concept of design (C8).
Reference Excerpt
Parrish
(2009, p. 513)
“Immediate qualities are not attended to simply for their immediate rewards – they are designed to
lend the experience lasting resonance”
Desmet et al.
(2013, p. 1)
“Design is transforming into a more expansive discipline, one that includes the coordinated design
of artefacts, services, systems, environments, human action, and many other resources.”
Säaksjärvi, Hellén
(2013, p. 33)
“Designers can be argued to play a key role in the success of marketing strategies when creating
business concepts: designers plan and execute the function and aesthetics of the product (and
sometimes also services).”
Flaherty
(2019)
“While it is important to design the longitudinal experience, it’s equally important to design its
components.”
Table 2. Selected example excerpts related to the concept of stimulus (C1).
Reference Excerpt
Mehrabian, Russel
(1974, p. 18)
“Physical or social stimuli in the environment directly aect the emotional state of the person”
Mehrabian, Russel
(1974, p. 56)
“Evidence that related the proposed emotional dimensions to the more traditional stimulus categories
based on sense modalities.”
Gibson
(1977, p. 68)
“The aordances of the environment are what it oers animals, what it provides or furnishes, for
good or ill.”
Oosterwijk et al.
(2012, p. 2111)
“Brain constructs mental states […] by creating situated conceptualisations […] that combine three
sources of stimulation: sensory stimulation from the world outside the skin […], sensory signals
from within the body […], and prior experience.”

David Havíř: Customer Experience Management: Underexplored Instrument for Customer Transformation
47
3.5 Memory (C4)
The concept of memory is based on the co-
mmon distinction between dierent types of
remembering, such as short-term and long-
-term and it represents the result of the enco-
ding of the experience (percepts) in the brain,
as well as non-sensory related memory of the
individual such as genetic memory. This con-
cept thus, besides genetic memory, encom-
passes concepts such as working memory,
short-term memory, and long-term memory
(episodic and semantic), explicit and implicit
memory, declarative and procedural memory,
retrospective, and prospective memory.
Table 3. Selected example excerpts related to the concept of perception (C2).
Reference Excerpt
Mehrabian, Russel
(1974, p. 29)
“Personality and temporary internal states […] combine with the situation to determine the overall
emotional response.”
Kahneman
(2003, p. 1454)
“Perception is reference-dependent: the perceived attributes of a focal stimulus reect the contrast
between that stimulus and a context of prior and concurrent stimuli.”
Marinier, Lard
(2004, p. 174)
“Perception processes stimuli from both external and internal sources and sends them to other
systems.”
Oosterwijk et al.
(2012, p. 2111)
“During every moment of waking life, the brain constructs mental states such as emotions, body
states, and thoughts by creating situated conceptualizations […] that combine three sources of
stimulation.”
Klaus
(2019, p. 7)
“What are brands but a collection of direct and interactions that is manifested in our brain as an
overall perception.”
Table 4. Selected example excerpts related to the concept of experience (C3).
Reference Excerpt
Carbone, Haeckel
(1994, p. 9)
“By, experience’ we mean the, take-away impression formed by people’s encounters with products,
services, and businesses – a perception produced when humans consolidate sensory information.”
Forlizzi, Battarbee
(2004, p. 261)
“Experience that results from interacting with products”
De Keyser et al.
(2015, p. 15)
“Customer experience is comprised of the cognitive, emotional, physical, sensorial, and social
elements that mark the customer’s direct or indirect interaction with a (set of) market actor(s).”
Roy
(2018, p. 401)
“Denition of customer experience as summarized by the author is as follows:
A gestalt of aective and cognitive elements resulting from a service encounter that may lead to
attitudinal outcomes such as satisfaction and repeat purchase intention and behavioural outcomes
such as loyalty and word of mouth.”
Becker, Jaakkola
(2020, p. 637)
“Customer experience should be dened as non-deliberate, spontaneous responses and reactions to
particular stimuli.”
Table 5. Selected example excerpts related to the concept of memory (C4).
Reference Excerpt
Forlizzi, Battarbee
(2004, p. 265)
“Each product interaction in an experience can be characterized by a particular eeting emotional
response […] and is ultimately stored in memory as a particular aspect of an experience.”
Kahneman, Riis
(2005, p. 286)
“Memories are what we get to keep from our experience.”
Norman
(2009, p. 24)
“What matters is the total experience. Furthermore, the actual experience is not as important as the
way in which it is remembered.”
Weidemann et al.
(2019, p. 1)
“The ability to remember events and facts depends on separate episodic and semantic memory
systems respectively.”

David Havíř: Customer Experience Management: Underexplored Instrument for Customer Transformation
48
3.6 Personality (C5)
The personality in this research is understood
broadly as the representation of the individu-
al physical setting, including memory, and
its manifestation in their original behaviour,
therefore interaction with all kinds of stimuli
in a specic time. The concept encompasses
traditional components of temperament and
character.
3.7 Society and Culture (C6, C7)
The society and culture in this study re-
present an analogy to the personality at the
higher level of groupings of individuals that
share the same characteristics or resources.
This independence from the particular in-
dividual allows non-centralised distributed
memory and thus storage of the experien-
ce and resulting behavioural patterns in the
brains of the members, their tools and envi-
ronments, which can be shared and further
act as the stimuli for long periods of time far
beyond the lifetime of the individual even
one generation.
3.8 Quality of Life
The concept of the quality of life is often
associated with the concepts of well-being,
happiness and life satisfaction, and short-
-term and long-term perspectives. In this
paper, the term quality of life is used as the
current evaluation of the past life; therefo-
re, the current evaluation of the result of all
the perceptions and interactions (experience)
from the individual’s life, further leading to
the states of happiness, life satisfaction, per-
ceived well-being or the opposites. This eva-
luation is therefore based on the perception
of the content of the memory. The quality
of life assessment is then understood as the
Table 6. Selected example excerpts related to the concept of personality (C5).
Reference Excerpt
McAdams
(1996, p. 295)
“Three relatively independent levels on which modern persons may be described […] Personality
traits, like those included within the Big Five taxonomy, reside at Level I […] provide a general,
comparative, and non-conditional dispositional signature for the person. Level II subsumes tasks,
goals, projects, tactics, defences, values, and other developmental, motivational, and/or strategic
concerns that contextualize a person‘s life in time, place, and role. […] life stories reside at the third
level of personality, as internalized integrative narrations of the personal past, present, and future.”
Robinson
(2008, p. 161)
“The personality traits are also partly determined by genetic dierences and by the cumulative
eects of prior experience.”
Sheldon
(2009, p. 271)
Four “tiers” of personality and personality theory
Personality = Self/Life-Story + Goals/Intentions + Traits/Individual Dierences + Organismic
Foundations
Sheldon
(2009, p. 272)
“Personality traits emerge in the interaction between basic human nature and the individual person’s
unique genetics and developmental history.”
Table 7. Selected example excerpts related to the concept of society and culture (C6, C7).
Reference Excerpt
Csikszentmihalyi
(2000, p. 268)
“Because consumer behaviour is largely driven by the desire to satisfy needs that have been
programmed in our minds either by the genes we inherit or the memes we learn from the culture in
which we live.”
Ryan, Deci
(2000, p. 75)
“Need satisfaction is facilitated by the internalization and integration of culturally endorsed values
and behaviour.”
Sheldon
(2004, p. vii)
“Social, and cultural factors that each make unique contributions to human behaviour.”
McAdams, Pals
(2006, p. 211)
“Culture exerts dierent eects on dierent levels of personality: […] on the phenotypic expression
of traits; […] content and timing of characteristic adaptations; […] inuence on life stories,
essentially providing a menu of themes, images, and plots for the psychosocial construction of
narrative identity.”

David Havíř: Customer Experience Management: Underexplored Instrument for Customer Transformation
49
Table 8. Selected example excerpts related to the concept of quality of life.
Reference Excerpt
Diener
(2006, p. 154)
“Quality of life usually refers to the degree to which a person’s life is desirable versus undesirable,
often with an emphasis on external components, such as environmental factors and income. In
contrast to subjective well-being, which is based on subjective experience, quality of life is often
expressed as more “objective” and describes the circumstances of a person’s life rather than his or
her reaction to those circumstances. However, some scholars dene quality of life more broadly,
to include not only the quality of life circumstances, but also the person’s perceptions, thoughts,
feelings, and reactions to those circumstances.”
Sirgy, Lee
(2006, p. 27)
“Marketing practices that have a negative inuence on the well-being of consumers. These
marketing practices include the design and manufacture of poor-quality products, failure to ensure
product safety, misleading advertising, among others.”
Costanza et al.
(2007, p. 268)
“We therefore need a more basic approach to dening quality of life (QOL) that, in turn, can guide
our eorts to improve humans‘ daily life experience.”
Felce
(2007, p. 126)
“Quality of life which integrates objective and subjective indicators and individual values across
a broad range of life domains. Life domains issues may be categorized within six areas: physical,
material, social, productive, emotional and civic well-being.”
Cloninger, Zohar
(2011, p. 24)
“Personality explained nearly half the variance in happiness and more than one-third of the variance
in wellness.”
overall result of the state of the all mentioned
concepts, in the context of this paper it plays
an overarching role and provides a starting
point for the further discussion later in the
paper.
3.9 Related Models
Due to the interdisciplinarity of customer ex-
perience, these customer experience related
concepts can be identied across disciplines
and found in several existing models, for
example the multi-store model of memory
(Atkinson, Shirin, 1968), the stimulus-or-
ganism-response (SOR) model (Mehrabian,
Russel, 1974), the model contrasting infor-
mation-processing and experiential view
(Holbrook, Hirschman, 1982), the cogni-
tive-aective processing system (CAPS)
model (Mischel, Shoda, 1995), McAdams’
(1996) three-level framework of personality,
Damasio’s (1999) model of consciousness,
Soar-Emote model (Marinier, Laird, 2004),
the model by Fiore, Kim (2007), Sheldon’s
(2009) SLOPIC model, Nagasawa’s models
integrating the Japanese concept of Kansei,
Schmitt’s (1999a) types of experience and
Norman’s (2004) levels of design (Irisawa,
Nagasawa, 2010; Nagasawa, 2015), or mod-
els proposed by the researchers studying
emotions (overview in Havíř, 2019), there-
fore proposed model in the following chapter
can be, basically, perceived as their high-lev-
el conceptual integration from the customer
experience and customer transformation per-
spective.
4. Results
The synthesis of the knowledge acquired du-
ring the theoretical development and based
on the links between the concepts related to
the customer experience resulted in the cir-
cular model describing the interconnected
inuences and transformations of the cus-
tomers’ internal and external environments.
From the high-level perspective, this model
covers the process of evolution in the context
of marketing from the perspective of a) the
customer, and b) the company in a neutral
way.
The customer’s journey in this model is
represented by a cycle of the subjective (per-
sonality dependent, C5) perception (H1, C2)
of the stimuli (C1), accumulation (H2) of
experience (C3), encoding (H3) of the ex-
perience into the brain (memorizing) (C4),
transformation (H4) of the personality (C5).

David Havíř: Customer Experience Management: Underexplored Instrument for Customer Transformation
50
Table 9. Overview of the hypothesized relationships.
Relationship Statement Selected foundational sources
H1 (Inter)action with a stimulus leads to its
perception by the individual
Mehrabian, Russel (1974); Lazarus (1982); Holbrook, Hirschman
(1982); Ulrich (1983); Mayer et al. (1997); Damasio (1999);
Hassenzahl et al. (2013); Säaksjärvi, Hellén (2013)
H2 Sum of partial individual’s perceptions
creates the gestalt experience
Holbrook, Hirschman (1982); Hirschman, Holbrook (1986);
Carbone, Haeckel (1994); Gentile et al. (2007); Hassenzahl
(2008); Verhoef et al. (2009); Schmitt (2011); Woodward,
Holbrook (2013); De Keyser et al. (2015); Lemon, Verhoef
(2016); Roy (2018); Becker, Jaakkola (2020); ISO (2019); De
Keyser at al. (2020)
H3 Individual’s experience is stored in the
memory
Herrmann (1982); Kahneman, Riss (2005); Duncan, Barrett
(2007); Miron-Shatz et al. (2009); Roediger et al. (2017); Levine
et al. (2018); Weidemann et al. (2019)
H4 Content of the individual’s memory
inuences his personality
McAdams (1995); Mischel, Shoda (1995); Csikszentmihalyi
(2000); Sheldon, Hoon (2006); Robinson (2008); Sheldon (2009);
Petrican et al. (2020)
H5 Individual’s personality translates
into the nature of the society he is
part of; the nature of the society the
individual is part of has the eect on
his personality
Max-Neef (1992); Csikszentmihalyi (2000); Ryan, Deci (2000);
Zaltman (2000); Sheldon (2004); Arnould, Thomson (2005);
McAdams, Pals (2006); Sheldon, Hoon (2006); Levine et al.
(2009); Sheldon (2009); Schwartz (2012); Becker, Jaakkola
(2020)
H6 Nature of the society translates into the
nature of the culture; culture has the
eect on the nature of the society
Bruner (1986); Sheldon, Hoon (2006); Sheldon (2009)
H7 Culture has the eect on the
individual’s personality
Max-Neef (1992); Zaltman (2000); Arnould, Thomson (2005);
Levine et al. (2009); Kozinets et al. (2010); Schwartz (2012);
Scherer (2016); Becker, Jaakkola (2020)
H8 Individual’s personality has an eect on
his design process
Hassenzahl et al. (2013); Säaksjärvi, Hellén (2013); Lenz et al.
(2017)
H9 Design process leads to the new/
modied stimulus
Ma et al. (2012); Hassenzahl et al. (2013); Säaksjärvi, Hellén
(2013); Lenz et al. (2017)
H10 Individual’s memory of past
experiences provides stimulus through
the recollection or imagination
Conway (2001); Levine et al. (2009); Miron-Shatz et al. (2009);
Nadel, Hardt (2011); Hill, Emery (2013); Van Damme et al.
(2016)
H11 Individual’s/customer’s personality has
the eect on his perception
Diener, Lucas (1999); Kahneman, Thaler (2006); Sheldon (2009);
Verhoef et al. (2009); Cloninger, Zohar (2011); Ma et al. (2012);
Mehmetoglu (2012); Marbach et al. (2016)
Figure 2. Holistic circular model of customer experience and the related topics. Source: Own processing.

David Havíř: Customer Experience Management: Underexplored Instrument for Customer Transformation
51
In addition to that, the marketer’s journey
contains the personality (C5) dependent
(H8) process of the design (C8, H9) of the
stimuli (C1). The dierence between these
two roles or journeys reects the dierence
between the absolute roles of a consumer
and a producer. In the context of this model,
the producer might be equated to the role of
the creator, the one who through the increas-
ing entropy uses and transforms the resourc-
es of the world to stimulate the subjectively
desirable changes in the world.
This model is therefore also compatible
with the concept of co-creation, where the
customer is not only the passive consumer
of the company’s output (stimuli) but the
co-creator who participates in the creation
of the output (Prahalad, Ramaswamy, 2004).
All of the co-creators then bring to the de-
sign process their personal characteristics
(personality) and resources to personalize
the stimuli according to their own needs
and wants and therefore to improve the ra-
tio between entropy costs and resulting pos-
itive changes while minimizing the negative
changes for each of them.
5. Discussions
The circular model of change provides a
foundation for further discussion on the to-
pic of customer experience and customer
transformation. The view from the macro
perspective provides many questions to be
answered, in particular in relation to the
hypothesised relationship (H8) between the
concept of the personality (C5) and design
(C8). As the design process is based on the
use of limited resources and their transfor-
mation to potentially inuential stimuli, the
topics of rights, laws, and ethics arise in the
context of strategic marketing.
Each new stimulus created means less
simple resources available in the world
and more stimuli stimulating change in the
world. All the companies are then in the
position where they can through their pur-
chase power acquire the valuable resources
and start a change considered valuable for
the key stakeholders and its operation (e.g.
purchase, use, engagement, loyalty, or word-
of-mouth). The equation of the costs and
revenues then aects the evaluation of the
change.
On the opposite part of the model, in the
hypothesised relationship (H1) between
stimulus (C1) and perception (C2) inu-
enced (H11) by the personality (C5), the val-
ue (C2) of the stimulus perceived (H1) by the
customer is aected (H10) by his personality
(C5), therefore customer’s memory system
(C4) which encompasses evolutionarily old-
er codes. The company, through its market-
ing activities, therefore can (intentional or
unintentionally) create outputs which stimu-
late the customer’s more primitive self (or in
the words of Freud the ID) and promote the
degradative change in customer’s personali-
ty (C5) when the super-ego is not supported
enough by other stimuli (C1) and the indi-
vidual’s system is not suciently balanced.
The problem stems from the fact that the
company’s creation (H9) of the output (C1)
stimulating negative/degradative change can
still be rewarded by the customer, as it may
be perceived valuable (C2) as promoting
positive emotions (C2) when the insucient
capacity of the individual’s cognitive system
(as part of C5) does not allow the change
(H11) in the perception (H1) or even the
awareness of it. Such false-positive experi-
ence (C3) is then stored (H3) in the memory
system (C4) and inuences (H4) the person-
ality (C5) of the customer and therefore his
future perceptions (H11, C2), which, with-
out enough intervention from other (positive
evolution promoting) stimuli (C1), creates
the cycle of possible degradation of the per-
sonality of the individual (C5) that further
translates (H8) (directly or indirectly) into
the design process (C8) and through the cre-
ation (H9) of the stimuli (C1) produced in
scale can inuence (H5, H6) society (C6)

David Havíř: Customer Experience Management: Underexplored Instrument for Customer Transformation
52
and even culture (C7) with subsequent in-
uence on future generations. However, it
is important to note that the same applies to
positive change.
In this day and age, individuals are sur-
rounded by an enormous number of objects
(stimuli, C1) and are drawn into the scenarios
that were designed (C8, H9) by the various
groups of individuals (C5, C6) (companies)
and were under various circumstances with
various intentions brought to the individuals’
presence even without their direct involve-
ment or knowledge and sometimes without
an option to not perceive (H1) them or par-
ticipate. An individual’s transformation then
reects the qualities and aordances of the
designed (C8, H9) objects or scenarios (pro-
viding C1) that are subjectively perceived
(C2) by this individual (C5).
While there are mechanisms which control
the market and the entry of the outputs of the
companies to the public, it is also true that
many of the products that enter the public are
undoubtedly providing stimuli for the deg-
radation/negative transformation of the cus-
tomers. In the better case, these products are
adequately marked. The allowance of the po-
tentially harmful products transfers the deci-
sion-making responsibility to the customers,
assuming they have enough resources for the
right decision and always a balanced person-
ality system to not succumb to their more
primitive selves.
In the era of big data, powerful compu-
tational systems, articial intelligence, and
globally connected scientists, one should
ask if there is more that could be done than
marking some products with labels such as
„”an cause illness”, “not suitable for chil-
dren” or “possible side eects are”. On the
other side, should everything be allowed to
be mass-created from the limited resources
without clear proof of its benets?
There is information about allergens on the
food to let everybody know if the product is
harmful or not for him/her; the one who has
the conrmed allergy has all the information
to prevent the harm to themselves, one who
does not have a conrmed allergy has the in-
formation to make the decision themselves.
As the marketing research got from the age
of goods to services, and now to experiences,
it is time to look beyond the material compo-
sition of the products towards the experienc-
es and not only physical but also psycholog-
ical transformations they cause. It should be
considered to go beyond the nutrition labels,
beyond age-related recommendations, to
personality dependent recommendations and
information, to clearly provide information
about the impact of the experience.
The marketing departments have detailed
information about the customers’ personal-
ities and manage how the experience will
inuence the customers in their interest; cus-
tomers do not know themselves to this level
of detail and even if they did, they do not
have enough information about the impact of
such experience. As the customer often does
not have a chance to nd out if the processed
food contains harmful allergen for them, one
is not able to predict the experiential impact.
With the accelerating process of creation
and mass production, the resources are being
used faster, and without proper investigation,
the products may enable more harmful ex-
periences. Moreover, the impact of digital
products is not in the speed and scale limited
by the matter.
Believing that all the companies thoroughly
investigate the design of their products to pro-
vide the best experience in terms of quality
of life would be ignorant, and believing that
customers could be educated enough to make
a proper decision without sucient informa-
tion is ignorant, therefore the provision of
such experience related information should be
required and self-knowledge highly promoted
or there must be a more thorough superviso-
ry mechanism which takes into account cus-
tomer experience, its impact on the personal
transformation and which controls the inter-
action (H1) between the individual and the
stimuli created by the company.

David Havíř: Customer Experience Management: Underexplored Instrument for Customer Transformation
53
However, from another standpoint, to a
large extent, there are processes with not so
clear or predictable outputs, which can bring
considerable ambiguity to the process of
transformation making it dicult to assess,
by both companies and legal authorities.
These are the discrepancies or gaps between,
for example, the designers’ intent (H8, C8)
and the actual result of the design process
(C1) (intent-result gap), the overall real form
of the company’s output (C1), and the cus-
tomer’s subjective perception of it (C2) (re-
ality-perception gap), single subjective per-
ception (C2) and its role as the part of the
whole experience episode (C3) (single-part
gap), or between an experience (C3) and
memory of it (C4) (experience-memory gap)
(Miron-Shatz, 2009).
Vargo, Lusch (2017) point to the insuf-
cient coverage of the eld of macromar-
keting by the leading journals as well as to
the doctoral students’ lack of interest in this
topic. At the same time, they nd the use of
service-dominant logic, therefore customer
experience too, benecial for bridging busi-
ness practice and ethical principles.
The search, with the aim to explore the
degree to which the topic of customer ex-
perience is researched alongside the select-
ed macromarketing topics related to the
customer transformation, performed on 22
December 2020, in the Web of Science and
Scopus databases, shows that the customer
experience as the marketing concept is al-
most not recognised in the research with top-
ics of memory and personality, nor it is used
in the research on the quality of life (and
related topics) and researched in the context
of ethics or corporate social responsibility.
The search was focused on the research arti-
cles published through the years 2000–2020,
whose title, abstract, or keywords contain a
combination of the phrase “customer expe-
rience” and “memory”, “personality”, “hap-
piness”, “well-being”, “life satisfaction”,
“quality of life”, “ethics”, or “corporate so-
cial responsibility”, as shown in the follow-
ing Figure 3.
Figure 3. The number of the articles on the customer experience and related concepts indexed in the
scientic databases. Source: Own processing.

David Havíř: Customer Experience Management: Underexplored Instrument for Customer Transformation
54
6. Conclusion
The research paper presents a circular mo-
del of change, conceptually presenting the
process of customer transformation through
customer experience and experience design.
The model provides a basis for the discu-
ssions on customer experience management,
the recent marketing phenomena, and pre-
sents it as the imaginary free market for cus-
tomer transformation, where there are very
small barriers for companies to change the
people according to their own needs.
The conceptual model is composed of the
eight concepts that are part of the transfor-
mational lemniscate representing an innite
cycle of change in the world from the high-
er-level perspective and marketing process of
customer transformation from the lower-lev-
el perspective. The cycle is composed of the
design process of the stimuli, the perception
of the stimuli by the individual (former in-
uenced by the personality of the designer
or another co-creator, latter inuenced by the
personality of the perceiver), the experience
cumulatively composed of such perceptions,
the memory of all experiences of the per-
ceiver as their ancestors, and the personality
resulting from the memory and the society
and the culture with their mutual inuences.
The model universally represents both the
transformational cycle of the customer and
the designer, any other employee or entre-
preneur, and further company, society, and
culture.
The model also points to the weak spots
of the transformational cycle in terms of
customer/human growth/development in
the recent business context, specically the
freedom and power the organisations have to
transform the customers according to their
business needs. This freedom and power
stems, for example, from the open global
market, fast distribution and mass produc-
tion, moreover fundamentally enhanced and
simplied when supported by the digitisa-
tion, when there are only insignicant limits
of the capacity, transformation, and transport
of the matter; or the big data collection and
analysis enabled by the digitisation; and last
but not least the obsolete legal systems. Such
freedom and power are a great achievement
of mankind, but only if it is utilised ethically
and/or legally supervised to prevent its mass
deprivation.
Subsequently, the literature search in the
Scopus and Web of Science databases was
performed to analyse the current approach to
the customer experience research in the con-
text of its ethical side and its eect on the
quality of life. The search revealed minimal
to non-existent scientic interest in the in-
tersection of these topics through the years
resulting in the need and space for future
research; the possible avenues for future
research follow. The outlined concepts and
hypothetical relationships should be further
validated, both on a theoretical and empirical
level, and should be rened and supplement-
ed on the basis of new knowledge.
Future research in the eld of customer ex-
perience should be focused on the ethical ap-
proaches to its management, its integration
within corporate social responsibility, and its
eects on the customers’ well-being, long-
term happiness, life satisfaction, and quality
of life. Such research could balance the still
increasing popularity of the customer expe-
rience management works, which can build
on the latest psychological and neuroscience
knowledge and therefore provide powerful
tools to control and transform customers.
Another possible direction of future research
could be devoted to the development of the
legal instruments and measures for the eval-
uation of customer experience and its con-
sequences. In relation to that, the research
capacity could also be directed to the devel-
opment of the business customer experience
codex. It would be also benecial to deepen
knowledge related to the discrepancies and
gaps between the designers intent and the ac-
tual result (intent-result gap), the overall real
form of the output and customer’s subjective

David Havíř: Customer Experience Management: Underexplored Instrument for Customer Transformation
55
perception of it (reality-perception gap), sin-
gle subjective perception and its role as the
part of the whole experience episode (sin-
gle-part gap), and experience and memory
of it (experience-memory gap) to support
the eectiveness of marketing initiatives to
reduce the use of resources as well as to in-
crease transparency in the eld of custom-
er experience and transformation to support
and enable their meaningful assessment.
In line with these avenues for further re-
search, the proposed conceptual model will
be initially used as the integrating frame-
work for the future research by the author,
while the hypothesised relationships be-
tween individual pairs of concepts and the
concepts themselves will be, in order to
manageably approach such a complex issue,
gradually further decomposed, analysed and
empirically tested in the following research
works to develop a suitable research instru-
ment for its overall validation to enable its
further application in the areas such as mar-
keting, management, or the law.
The limitations of this research lie in the
potential subjectivity as it was performed by
only one researcher, the scope as only key
works were considered for the analysis and
synthesis, and thoroughness as the main ob-
jective was to create a general conceptual
model as the foundation for future research.
Acknowledgment
This research is a part of a project Compari-
son of the Marketing Approaches in the Are-
as of B2B and B2C led by Ing. Jan Machala
(FP-J-20-6415).
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Received: 6. 11. 2020
Reviewed: 14. 1. 2021
Accepted: 30. 6. 2021
Ing. David Havíř
Brno University of Technology
Faculty of Business and Management
Department of Management
Kolejní 2906/4, 612 00 Brno
Czech Republic
E-mail: david.havir@vutbr.cz