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Why Do Customers Love MUJI?

Applying experiential marketing to brand loyalty

Authors

9631507 陳思瑜

9631509 林郁芬

9631516 江奕萱

9631524 朱良敏

9631534 吳宜珊

National Chiao Tung University

Why Do Customers Love MUJI? 2

Abstract

MUJI as we know that it’s not only a retail store to sell product but they sell a

service of “simple life style” to people. Recently many service industries adapt

experiential marketing to win customer’s experience and loyalty. The concept of

experiential marketing is according to the research of Schmitt (1999). There are five

dimensions in his study: sense, feel, think, act and relate.

Our research purpose is to find the relationship between MUJI shoppers’

experience and their loyalty, and to find the key influencing factors to MUJI shoppers’

experience. The results we found in this research are:

Sense, feel, think, act and relate all of them have significantly positive effect on

brand loyalty. The relationship between action of SEM and brand loyalty is the most

significant. The questionnaire about action experience in our research display our

sample agreed in response to the question that MUJI will make me think of my

lifestyle.

So, we suggest MUJI could stimulate customers’ sense and feel that touched

customers more by increasing more marketing experiential about sense, feel, think,

and relate. Strengthen the close relationship between MUJI and consumers and let

them have a wonderful experience by providing good service or products. Therefore

influence their brand loyalty.


Content

Abstract .......................................................................................................................... 2

CHAPTER 1 INTRODUCTION ................................................................................... 6

1.1 Research Background ...................................................................................... 6 1.2 Research Motivation ........................................................................................ 8 1.3 Research purpose ............................................................................................. 9 1.4 Research content and process ........................................................................ 10

CHAPTER 2 LITERATURE REVIEW....................................................................... 12

2.1 The Definition and Measurement of Brand Loyalty ...................................... 12 2.2 Experiential Marketing .................................................................................. 14 2.3 The introduction of MUJI .............................................................................. 16

CHAPTER 3 RESEARCH METHODOLOGY .......................................................... 20

3.1 Conceptual Framework .................................................................................. 20 3.2 The Operating Definition of Research Variable ............................................. 21 3.3 Hypothesis...................................................................................................... 22 3.4 Questionnaire Design ..................................................................................... 23

CHAPTER 4 STATISTIC ANALYSIS AND RESEARCH RESULT ....................... 27

4.1 Sample Structure and Descriptive Statistics .................................................. 27 4.2 Pearson Correlation Coefficient ..................................................................... 32 4.3 Regression Analysis ....................................................................................... 33 4.4 Reasons customers love about MUJI ............................................................. 34

CHAPTER 5 CONCLUSION AND DISCUSSION ................................................... 37

5.1 Research Conclusion ...................................................................................... 37 5.2 Suggestion for Future Researches and Advice from Our Study .................... 39

REFERENCE ............................................................................................................... 41

APPENDIX .................................................................................................................. 43


Table List

Table 1 Relevant Literature of Brand Loyalty ............................................................. 12

Table 2 Brand Loyalty Measurement ........................................................................... 13

Table 3 Assessment Tools for Experiential Marketing ................................................ 23

Table 4 The variable of brand from Aaker (1991) aspect ............................................ 24

Table 5 Assessable aspect of experiential marketing and items of questionnaire ....... 24

Table 6 Assessable aspect of brand loyalty and items of questionnaire ...................... 26

Table 7 Descriptive Statistic of demographic variables - Sex & Marital Status .......... 27

Table 8 Descriptive Statistic of demographic variable - Age ...................................... 28

Table 9 Descriptive Statistic of demographic variables - Income Level ..................... 29

Table 10 Descriptive Statistic of demographic variables - Education ......................... 29

Table 11 Descriptive Statistic of demographic variables - Occupation ....................... 30

Table 12 Descriptive Statistic of consumer behavior variables ................................... 31

Table 13 Pearson Correlation Coefficient of experiential modules to brand loyalty ... 32

Table 14 Multiple Regressions of five experiential modules on brand loyalty ........... 33


Figure List

Figure 1 Research process chart .................................................................................. 11

Figure 2 MUJI shop in the department store ............................................................... 16

Figure 3 The simple advertisement of MUJI. .............................................................. 18

Figure 4 Conceptual Framework ................................................................................. 20

Figure 5 Bar Chart of highest score question in Sense Module ................................... 34

Figure 6 Bar Chart of highest score question in Feel Module ..................................... 34

Figure 7 Bar Chart of highest score question in Think Module .................................. 35

Figure 8 Bar Chart of highest score question in Act Module ...................................... 35

Figure 9 Bar Chart of highest score question in Relate Module .................................. 36

Figure 10 Bar Chart of highest score question in Brand Loyalty ................................ 36

Figure 11 Acrylic pitcher ............................................................................................. 38


CHAPTER 1 INTRODUCTION

1.1 Research Background

As the consumption type changed, the economy of development has changed

from agricultural economy, industrial economy, service economy to the oncoming

experience economy. According to Pine and Gilmore (1998) the experience economy,

HBR pointed that: the experience economy, which can be identified four stage of the

progression of the economic value: commodities, goods, services, and experiences.

The so-called experience economy, refers to a service focus, commodity-material,

for customer to create memorable experience. The conventional economy focus on

function-oriented products, good looks and price advantages; the present trend is to

shape “sensory experience” and “recognition of thinking” based on life and situation

in order to catch the attention of customers by changing customer behavior to find the

new survival value and the space for the product.

In the past, most managers tended to assume that rational consumer would search

for product based on the functional efficiency and benefit by comparing different

products when they make buying decision. However, these model only a part of the

fact. Gradually, marketers realize that consumers are living people that demanding

experience, they want to be encouraging, entertainment, education and challenges.

They are seeking to provide their experience of the brand and allow the experience to


become a part of their lives, for the experience marketing to provide a new way for

the establishment brand. Traditional marketing of brand building is treated just like

the use of the name brands, trademarks, and advertising slogans of the static

recognition. And the recognition function is the brand is equal to the recognition, this

indeed is the brand core function. However, brand is not only recognition also the first

line of media experience (Schmitt, 1999). How do customers have consciousness to

the brand then has the manner, likes, even purchasing the behavior? They come from

the firms as the brand’s marketing activities. Enterprises must to invest in variety of

marketing activities for the brand to make the customers have the sense, association,

attitude, and purchasing behavior with the brand. These investments just like the

communication tool to the enterprises and customers and experiential marketing is

one kind of the important tool for firms to convey the role of brand and product

positioning. Furthermore, to raise brand awareness, allows consumers to have a

positive attitude and association.

As Schmitt (1999) mentioned the model of five strategic experiential modules

(SEMs), from the five dimensions of the customer’s sense, feel, think, act and relate

to design the thinking way of marketing. Such thinking way break out the

conventional assumption that customers are rational, think customers are rational and

perceptual concurrently instead. The experience before, at, and after the consumers


consumes is the key point when analyzing consumer’s behavior and brand

management. Urde (1994) advocated that brand-oriented is the essential strategy

which the enterprise maintains survives and grows. So the world-class brand rule is,

the product no longer has the function characteristic, but is meaning to provide and

strengthen customer's experience (Schmitt, 1999). In other words, strengthening the

customer experience means to strengthen the equity and value of brand.

1.2 Research Motivation

Customer satisfaction surveys have become commonplace in many corporations.

Initially the emphasis was on measuring customers’ overall perceptions of quality, the

view being that an increase in satisfaction would lead ultimately to an increase in

sales.

With international and liberalization, competitive pressure will be harsh.

Therefore, how to win the consumer’s heart will be the focus of enterprises. Some

domestic enterprises have been adopting the management guideline of customer

orientation and attempt to raise customer satisfaction and loyalty. In our project

chooses MUJI, which is closely associated with the daily life, to study the relationship

between customer satisfaction and loyalty to provide the competing retail industry

with information for reference by delivering what customers satisfaction and create

customer loyalty.


As we mentioned before, experiential marketing is a concept of rational and

perceptual. The customer’s buying decision has been influenced by emotional factor

to a certain degree, so this research takes experiential marketing and the relationship

with the customer satisfaction as the research main axle.

1.3 Research purpose

Under the development trend of Cultural and Creative Industries, Taiwan in

recent years has witnessed the rises of many culture products that deserve the deep

acceptance of customers. “MUJI”, originating from Japan, has become a new force in

Taiwan. It is quite different from “Working House” by appealing to quality, design

and simplicity. Therefore, “MUJI”, the cultural and creative product in Taiwan, enjoys

its fame among the young people with its limitless creativity.

MUJI who practices “No Brand” spirit was founded in 1980s. MUJI insists on

designing products by seeing it from customers’ perspective, so many customers

support and recognize MUJI and it is the lead in favorable impression of brand.

However MUJI faces the crisis in 2000 which the revenues rapidly declined, but it is

surprising people that their revenue revived quickly in 2002. It even made the record

high profits. How could MUJI do that?

Statement this research which Schmitt (1999) proposed to discusses five SEM

(strategic experiential model) from research problem.


I. Discuss the relationship between sense organ of SEM and brand loyalty.

II. Discuss the relationship between feel of SEM and brand loyalty.

III. Discuss the relationship between thinking of SEM and brand loyalty.

IV. Discuss the relationship between action of SEM and brand loyalty.

V. Discuss the relationship between relation of SEM and brand loyalty.

Provide the correlation industry reference to draw up the future marketing

strategy and the management brand. And will make the most effective utilization to

the investment resources.

1.4 Research content and process

I. Collect the research which has a relation between experience marketing and

brand loyalty, build the research framework, and forms the research supposition.

II. Design research questioner by five constructions of experience marketing and

brand loyalty.

III. Carrying on the forecast according to the research questioner. And performs to

revise

IV. Provide the research questioner and take back the research questioner.

V. To do analysis and reorganization with the research questioner by SPSS.

VI. To do analysis and discussion according to the result, and proposes the

conclusion and the suggestion.


Research background

Define research range

Related literature discussion between Domestic and foreign.

Research construction and supposition

Design research questionary and Sample investigation

Data processing and analysis

Conclusion and suggestion

Figure 1 Research process chart


CHAPTER 2 LITERATURE REVIEW

2.1 The Definition and Measurement of Brand Loyalty

Many scholars had many viewpoints on the definition of brand loyalty. Some

people refer to the part of purchasing behavior. Others prefer to the part of consumers’

mentality. Due to two dimensions both had a few defaults; certain scholars defined

brand loyalty by combining the two parts. This study summarizes the point-of-views

or definitions of previous scholars in Table 1 and Table 2. (Chin-Pin Chen, 2003)

Table 1

Relevant Literature of Brand Loyalty

Author, Year Conclusions

Assael (1993) The experience that consumers used products of the same

brand satisfies them; so it results in repeat purchasing

behavior.

Keegan (1995) Consumers were satisfied with performance offered by some

brand, so it results in repeat purchasing behavior.

Kinnear (1995) Consumers like a brand and buy product of this brand.

Baldinger (1996) In addition to repeat purchasing behavior, the definition of

brand loyalty contains the attitude of preferring the brand, and

integrates the two conditions. Then we can call the consumers


have brand loyalty.

Farr (1997) Consumers’ brand loyalty should contain behavioral and

attitudinal loyalty.

Source: Chin-Pin Chen, 2003, The Effect of Perceived Quality of Product on

Consumer Satisfaction and Brand Loyalty

Table 2

Brand Loyalty Measurement

Dimension Measurement Relevant Literature

Behavior Behavior of public praise Chaudhuri, et al. (2001)

Dimension of Repeat Purchasing Behavior Jacoby, et al. (1973)

Brand Loyalty Purchasing Quantity Taylor (1998)

Purchasing Frequency McIntyre (1998)

Recommendatory Behavior Sirgy and Samli (1985)

Attitude Loyalty of Self-cognitive Chaudhunri, et al. (2001)

Dimension of Taylor (1998)

Brand Loyalty Transfer to the competitor’s

Enduring Ability

Dick and Basu (1994)

Source: Chin-Pin Chen, 2003, The Effect of Perceived Quality of Product on

Consumer Satisfaction and Brand Loyalty


2.2 Experiential Marketing

The purpose of experiential marketing is to make customer experiences a good

marketing tool. Schmitt (1999) describes the experiential marketing process as: “sense,

feel, think, act, and relate”.

The “Sense” module appeals to the senses with the object of creating sensory

experiences through sight, sound, touch, taste and smell. All personal psychological

senses, beliefs, motivation, learning and attitudes influence customers’ purchasing

behavior (Kotler, 1994). If occasionally the stimulation a sensory system receives is

not enough for people to use the stimulation to construct the event, then it will

become the sense of the event. Sensory stimulation should support and enhance its

objective with experiences.

“Feel” marketing appeals to a customers’ inner feeling and emotions, with the

objective of creating affected experiences, ranging from mildly positive moods linked

to a brand to strong emotions of joy and pride. What is needed for “feel” marketing to

work is a close understanding of what stimuli can trigger certain emotions, as well as

the willingness of the consumer to engage in perspective-taking and empathy (Schmitt,

1999). Usually, only when customers use their direct experiences (e.g. purchasing

products) can they integrate their uncertainty about products and have more stable

attitudes about them.


“Think” marketing appeals to the intellect with the objective of creating

cognitive, problem-solving experiences that engage customers creatively. “Think”

targets customers’ potential thinking through surprise, intrigue and provocation

(Schmitt, 1999).

“Act” marketing strategies are designed to create customer experiences related to

the physical body, longer-term patterns of behavior and lifestyles as well as

experiences occurring as a result of interacting with other people. The proper

marketing of real experiences critically depends on creating the right products,

stimulation, and atmosphere to stimulate different types of customers to take buying

action. One of the most successful ACT strategies is to locate marketing close to a

place where physical desires are most likely to arise. This way, you not only create an

experience but simultaneously reinforce it (Schmitt, 1999).

Customer value belief found that customers could be influenced by reference

groups when they are making decisions. “Relate” marketing expends beyond the

individual’s private sensations, feeling, cognitions, and actions by relating the

individual self to the broader social and cultural context reflected in a brand (Schmitt,

1999). “Relate” implies customers’ involvement with other people, self-idealization

and culture. “Relate” campaigns appeal to the individual’s desire for

self-improvement. These appeal to the need to be perceived positively by other


individuals.

2.3 The introduction of MUJI

MUJI are established to Japan in 1980, and open the first store in the Taipei

breeze square in April 2, 2004 (Figure 2), the merchandise style is up to 3500 kinds

and carries according to the report that the store created beautifully scores about sale

2,500,000 dollar on the first day. And concerning its brand meaning is "have no

brand" and “good things”; therefore MUJI represent of the meanings is “good things

without brand”. Its concept is “not waste and simple”; the merchandise scope covers

clothing, living sundries, and stationery food. Especially, the clothing and the life

sundries are most popular.

Figure 2 MUJI shop in the department store

Perhaps everybody would suspect that, does it have the sense of reality about that

no logo goods. However, this young brand actually would enter to “100 big brands of

the word” easily by “World Brand Lab” evaluating. The place also has won fashion

leadership-GUCCI and the old high-quality goods shop – Hermes. Let people admire


the Japanese ability of to create the value and to mold image of the brand. The reason

of be elected is: “Let the spirit again to all, the simple and the no brand to trade one

kind of life concept and the life style in your mind, that are the most important

product about MUJI.”

MUJI’s operation in the first month would to start making a profit in Taiwan, and

insist "simple" being strength. If we said the MUJI attention environmental protection

and simple, we was inferior to take out a vessel which without something, and let

people feel the thought of “Emptiness” which be transmitted by MUJI.

In addition, MUJI also make sure that “considerate” is the winning way .The

consumer can publish his/her own design creativity through the website and be

produced after getting to choose and MUJI also will pay a design fee. That director

says: “MUJI use a perfect design to removing the small uneasy and dissatisfied when

consumer's shopping. Not only let the consumer feel "this, very good”, and even

attain to “this, that’s ok”.”

No brand and the fine goods is an essential element to MUJI’s marketing, and the

life advocacy of simple, nature and quality are MUJI’s big creativity about marketing.

On the other hand, it claim to through sell merchandise to promote life advocacy, and

also claim to use life style to promote goods. So we purchased MUJI not only for

transaction behavior of goods, but also the psychological approval to MUJI’s life


style.

Figure 3 The simple advertisement of MUJI.

MUJI originates from a supermarket and originally craves for to create the

simpler and the cheaper merchandise, but later become a respect for nature,

emphasizing simple as the main brand. In fact, the main reason is be affected by a lot

of Intermediate level customer, for example the office worker, student, young man,

there Intermediate level customers don’t favor famous brand, and also don’t like low

price product. MUJI can continuously provide reasonable price in the right time, and

let the customer enjoy the daily necessities of quality and tasty.

The first marketing assertion of MUJI was thoroughly simplified production line

and sales promotion to produce simple, quality goods but low price."There are reason

and cheapness" is a classic slogan at this time. Consequently, MUJI provided simply

merchandises without design completely in the beginning, and now MUJI put into a

great deal of amount design, and it uses the principle of the design of no design to


develop merchandise. The marketing advocacies of “less is more” become new rule of

fashion life’s design.


CHAPTER 3 RESEARCH METHODOLOGY

3.1 Conceptual Framework

Based on our research question and literature review, the five aspect of

experiential marketing are the independent variables and brand loyalty is the

dependent variable. Our purpose is to investigate that the impact on the five aspect of

experiential marketing: “SENSE”, “FEEL”, “THINK”, “ACT”, “RELATE” and brand

loyalty.

Thus, the conceptual framework of this study is below:

Figure 4 Conceptual Framework

Relate

Act Think

Sense

Feel

Brand Loyalty

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3.2 The Operating Definition of Research Variable

According to our conceptual framework, we illustrate our research variable:

I. Experiential Marketing:

We consult the concept of five aspect of experiential marketing which is averred

by Schmitt（1999）:

(1) Sense:

These are sensual and tangible aspects of a product or experience that appeal to

the five senses of sight, sound, scent, taste and touch. Sense experiences are

particularly useful to differentiate products or services, to motivate potential

customers, and to create a sense of value in the mind of the purchaser.

(2) Feel:

Feel marketing is devoted to inducing affect (i.e. the creation of moods and

emotions) that adhere to the company and brand. Clearly, positive or negative feelings

toward a product or service will influence the extent to which it is consumed.

(3) Think:

The objective of think marketing is to encourage customers to engage in

elaborative and creative thinking that may result in a reevaluation of the company and

products.

http://tw.dictionary.yahoo.com/search?ei=UTF-8&p=%E8%AA%AA%E6%98%8E


(4) Act:

Act marketing is oriented towards the creation of experiences through behavior

on the part of the customer, either privately or in the company of others. The goal is to

change long-term behavior and habits in favor of the particular product or service.

(5) Relate:

Relate marketing expands beyond the individual's private sensations, feelings,

cognitions and actions by relating the individual self to the broader social and cultural

context reflected in a brand. In other words, relate marketing plays upon the

identification of self with the context and associations bound up in the product or

service used.

II. Brand Loyalty:

When the competition brand provides the better competition strategy,

consumers still could continue the behavior to purchase your brand.

3.3 Hypothesis

Wen-Li Chen said there were four predictive variables for loyalty: “interior

ambience”, “sensitive consume”, “fashion style”, and “the frequency of each

month”； The total explained variance was 35%. Jr-Hua Liu said the web user’s

experience has positive effect to loyalty. Yu-Chun Liu found that the result of his

study will help enterprises to plan, design and operate their website from the


“experience” view and it will also strength customers’ loyalty and improve the

website’s performance in the experience economy era. Thus, our hypothesis is:

Hypothesis: SEMS has significant positive effect to brand loyalty

H1: Sense module has significant positive effect to brand loyalty

H2: Feel module has significant positive effect to brand loyalty

H3: Think module has significant positive effect to brand loyalty

H4: Act module has significant positive effect to brand loyalty

H5: Relate module has significant positive effect to brand loyalty

3.4 Questionnaire Design

The questionnaire of this study refers to the measurement of Schmitt (1999) and

Aaker (1991). See Table 3, Table 4.

Table 3

Assessment Tools for Experiential Marketing

Sense The (ExPro) tries to engage my senses. (+) The (ExPro) is perceptually interesting. (-) The (ExPro) lacks sensory appeal for me. (-)

Feel The (ExPro) tries to put me in a certain mood. (+) The (ExPro) makes me respond in an emotional manner. (+) The (ExPro) does not try to appeal to feelings. (-)

Think The (ExPro) tries to intrigue me. (+) The (ExPro) stimulates my curiosity. (+) The (ExPro) does not try to appeal to my creative thinking. (-)

Act The (Expro) tries to make me think about my lifestyle. (+) The (ExPro) reminds me of activities I can do. (+) The (Expro) does not try to make me think about actions and behaviors. (-)


Relate The (Expro) tries to get me to think about relationships. (+) I can relate to other people through this (ExPro). (+) The (ExPro) does not try to remind me of social rules and arrangements. (-)

Source: Schmitt, B. H. (1999). Experiential marketing. New York: The Free Press.231

Table 4

The variable of brand from Aaker (1991) aspect

Brand Loyalty 1. I was satisfied/ dissatisfied with last purchasing experience. 2. I be willing to purchase this product again. 3. This brand is the best brand I have ever seen./ is the better

one in two kind of products I have ever purchased./ is the best one in three kinds of products I have ever purchased.

4. I be willing to promote this product to others. Source: David A. Aaker (1991), “Managing Brand Equity.” New Yourk: Free Press.

We use Schmitt experiential marketing and have five questions each aspect. Thus,

we all have 25 questions (Table 5). Especially the question 5, 10, 15, 20 and 25 are

reverse questions. We also use Likert scale. The format of a typical five-level Likert

item is: strongly disagree, disagree, neutral, agree, and strongly agree.

Table 5

Assessable aspect of experiential marketing and items of questionnaire

Assessable aspect items Sense experience 1. Quality of MUJI of merchandises is really good.

2. Merchandises of MUJI are simple but design to let you like them.

3. Brand of MUJI and the label let you have deep impression.


4. The atmosphere, the music, and the overall shopping environment of the MUJI shop let you feel joyfully satisfies.

5. The whole performance of MUJI lacks the demand of feeling.

Feel experience 6. The environment of MUJI let me have warm feelings. 7. The service attitude of MUJI lets me satisfy, receive the

respect. 8. The non-brand meaning of MUJI makes me in a stew. 9. The commodity of MUJI lets people feel that is in

keeping with the fashion. 10. The whole performance of MUJI has not affected my

mood response Think experience 11. MUJI’s product can simulate my curiosity.

12. MUJI’s product can make me feel surprising. 13. MUJI’s product can simulate me the thinking of other

related thing, like lifestyle and environmental protection …etc.

14. MUJIs product can simulate my imagination. 15. MUJI’s products never simulate my creative thinking.

Act experience 16. I would like to join the MUJI’s net community. 17. MUJI holds special theme events attract me to

participate. 18. MUJI reminds me of activities I can do. 19. MUJI tries to make me think about my lifestyle. 20. MUJI does not try to make me think about actions and

behaviors. Relate experience 21. MUJI causes me to establish the relations with the

others. 22. The MUJI products can cause between me and friend's

discussion. 23. MUJI enables me to have the sense of belonging to the

company. 24. MUJI causes me to associate own social activity

arrangement. 25. MUJI doesn’t let me receive identification with social.

Source: This study


We use one of the aspects from Aaker research and have three questions still use

Likert scale (Table 6). The format of a typical five-level Likert item is: strongly

disagree, disagree, neutral, agree, and strongly agree.

Table 6

Assessable aspect of brand loyalty and items of questionnaire

Assessable aspect items Brand Loyalty 1. I won’t buy other similar brand because it has lower

price than MUJI. 2. I will buy MUJI products next time. 3. I will recommend MUJI products or service to other

people. Source: This study


CHAPTER 4 STATISTIC ANALYSIS AND RESEARCH RESULT

This chapter is base on the statistic analysis of 63 valid samples. According to

our research questions and hypotheses, we’re going to illustrate them in four sections.

First, we will analyze what types of customers come to MUJI and how they

behave by using descriptive statistics. Second, use Pearson correlation coefficient to

understand the relationship between strategic experiential modules and brand loyalty.

Third, use regression analysis to show which module has the most significant effect

on brand loyalty. And the last, we average the score of each questionnaire question in

five experiential modules to see what factor has the most powerful influence on

consumer.

4.1 Sample Structure and Descriptive Statistics

Gender

In our 63 valid samples, we find there are 19 males and 44 females in Table 7,

and 52 of them are still single, the other 11 are married.

Table 7

Descriptive Statistic of demographic variables - Sex & Marital Status

Samples Percentage (%) Accumulative Percentage (%)

Sex

Male 19 30.2 30.2

Female 44 69.8 100.0

Total 63 100.0


Marital Status

Single 52 82.5 82.5

Married 11 17.5 100.0

Total 63 100.0

Age

As you can see in Table 8, there are 2 people less than 20 years old, 46 people

are between 21 to 30 years old, 14 people are between 31 to 40 years old, and only 1

person is over 40 years old.

Table 8

Descriptive Statistic of demographic variable - Age

Number of Samples Percentage (%) Accumulative Percentage (%)

Under 20 21 ~ 30 31 ~ 40 Over 40 Total

2 3.2 3.2

46 73.0 76.214 22.2 98.41 1.6 100.0

63 100.0

Income Level

In 63 valid samplings, there are 17 people’s income level less than 10,000 NT

dollars, 7 people’s income level between 10,000 to 20,000 NT dollars, 20 people’s

income level between 20,000 to 30,000 NT dollars, and 19 people’s income level over

30,000 NT dollars (See Table 9 ).


Table 9

Descriptive Statistic of demographic variables - Income Level (Per Month)

Samples Percentage (%) Accumulative Percentage (%)Under NT10,000 17 27.0 27.0NT10,000 ~ 20,000 7 11.1 38.1NT20,000 ~ 30,000 20 31.7 69.8over NT30,000 19 30.2 100.0Total 63 100.0

Education

We can see in Table 10, there is 1 person’s education below junior high school, 1

person’s education is senior high, 38 people’s education are university or college, and

23 people’s education are graduate school.

Table 10

Descriptive Statistic of demographic variables - Education

Samples Percentage (%) Accumulative Percentage (%)

Below junior high school 1 1.6 1.6

Senior high school 1 1.6 3.2

University / college 38 60.3 63.5

Graduate school 23 36.5 100.0

Total 63 100.0

Occupation

Base on 63 valid samplings, there are 21 students, 4 military or civil service


workers, 8 people in manufacturing industry, 13 people in service industry, 14

SOHOs, and 3 people with other occupation.

Table 11

Descriptive Statistic of demographic variables - Occupation

Samples Percentage (%)Accumulative

Percentage (%)Student 21 33.3 33.3The military/civil service worker 4 6.3 39.7Manufacturing industry 8 12.7 52.4Service industry 13 20.6 73.0SOHO 14 22.2 95.2others 3 4.8 100.0Total 63 100.0

Consumer Behavior Variables

We have summary all the consumer behavior variables in Table 12. This table

shows that 60.3% people go to MUJI 11 to 20 times per year, and 46% of them spend

about 500 to 1,000 NT dollars each time.

In our 63 valid samplings, 23 people go to MUJI for shopping, 17 people go for

popular products, 15 people go for on sale products, and the rest of 8 people just

hanging around to spend the leisure time.

There are 88.9% people definitely will come to MUJI to purchase again. Their

overall satisfaction for MUJI reach to 58.7% feels good about it, and 7.9% feels very

good about it.


Table 12

Descriptive Statistic of consumer behavior variables

Samples Percentage (%) Accumulative Percentage (%)How often do you go to MUJI per year?

1-10 times 17 27.0 27.011-20 times 38 60.3 87.321-30 times 6 9.5 96.8above 30 times 2 3.2 100.0

Total 63 100.0How much do you spend each time?

under 500 22 34.9 34.9500-1,000 29 46.0 81.01,500-2,500 9 14.3 95.2above 2,500 3 4.8 100.0

Total 63 100.0What’s your purpose to MUJI?

On sale 15 23.8 23.8Popular product 17 27.0 50.8Shopping 23 36.5 87.3Hanging around 8 12.7 100.0

Total 63 100.0Overall satisfaction

OK 21 33.3 33.3good 37 58.7 92.1very good 5 7.9 100.0

Total 63 100.0Will you come to MUJI again?

Yes 56 88.9 88.9No 7 11.1 100.0

Total 63 100.0


4.2 Pearson Correlation Coefficient

This section is base on Pearson Correlation Analysis to analyze the direction of

experiential modules and brand loyalty. From Table 13, we find all the five

experiential modules (Sense, Feel, Think, Act, and Relate) have significant positive

effect on brand loyalty.

“Relate Module and Brand Loyalty” has highest correlation coefficient equal to

0.661; “Act Module and Brand Loyalty” is second high with 0.651; “Think Module

and Brand Loyalty” is third high with 0.625. The lowest is “Sense Module and Brand

Loyalty” with only 0.416.

Table 13

Pearson Correlation Coefficient of Experiential Modules to Brand Loyalty

Sense Feel Think Act Relate Brand LoyaltySense 1.000 .595 ** .556 ** .489 ** .416 ** .491 ** Feel .595 ** 1.000 .634 ** .622 ** .680 ** .620 ** Think .556 ** .634 ** 1.000 .566 ** .662 ** .625 ** Act .489 ** .622 ** .566 ** 1.000 .667 ** .651 ** Relate .416 ** .680 ** .662 ** .667 ** 1.000 .661 ** Brand Loyalty .491 ** .620 ** .625 ** .651 ** .661 ** 1.000

*P < 0.05, **P < 0.01


4.3 Regression Analysis

In multiple regression analysis, we use brand loyalty as dependent variable and

experiential modules as independent variables. According to Table 14, we can have a

regression equation:

Y = -0.751 + 0.132 X1 + 0.191 X2 + 0.267 X3 + 0.359 X4 + 0.289 X5

Where Y stands for brand loyalty, X1 is Sense, X2 is Feel, X3 is Think, X4 is Act, and

X5 is Relate.

Among the five experiential modules, act module has the most significant effect

on brand loyalty. But the sense, feel, and think modules don’t have significant effect

on brand loyalty.

Table 14

Multiple Regressions of five Experiential Modules on Brand Loyalty

Unstandardized Coefficients Standardized Coefficients t Sig. B Std. Error Beta (Constant) -.751 .580 -1.294 .201 Sense .132 .184 .083 .715 .477 Feel .191 .224 .119 .856 .396 Think .267 .178 .195 1.499 .139 Act .359 .169 .267 2.122 .038 ** Relate .289 .170 .239 1.693 .096 *

R-square is 0.567

*P < 0.10, **P < 0.05


4.4 Reasons customers love about MUJI

This section, we average the score of each questionnaire question in five

experiential modules in order to see what the most important factor to consumer is.

In Sense Module, people love MUJI’s product with simplicity design (See Figure

5). In Feel Module, customers feel MUJI create a comfortable shopping environment

(See Figure 6).

Figure 5 Bar Chart of highest score question in Sense Module

Figure 6 Bar Chart of highest score question in Feel Module


In Think Module, most people have related thinking stimulate by MUJI’s

product, such as lifestyle or environment protection issues (See Figure 7). Thus, in

Act Module we find customers will take action about thinking of their way of living

(See Figure 8).

Figure 7 Bar Chart of highest score question in Think Module

Figure 8 Bar Chart of highest score question in Act Module


In Relate Module, consumers feel that they can receive social identity by using

MUJI’s product (See Figure 9). And they are willing to recommend MUJI’s products

and services to others and make the repeat purchasing (See Figure 10).

Figure 9 Bar Chart of highest score question in Relate Module

Figure 10 Bar Chart of highest score question in Brand Loyalty


CHAPTER 5 CONCLUSION AND DISCUSSION

Based on the research of chapter 4, we make the suggestion that why customers

love MUJI.

5.1 Research Conclusion

In our study, the relationship between action of SEMs and brand loyalty is the

most significant. The action experiences are as follows: Customers can use the

branded credit card, to get dividend when buying MUJI product. When MUJI hold

some special marketing activities, they also can attract the consumers. Like their

recently new activity “SO, I SEE!” (原來如此), as MUJI from the daily life of small

found to develop products, and MUJI also hope customers to issue the endorsement of

MUJI delicate design. Furthermore, MUJI stimulates people to think their everyday

things. The acrylic pitcher (See Figure 11) is the NO.1 of the “SO, I SEE!” election

activity. The special bottle design can be used upright and also be flat on the

refrigerator when lack of the space. The added basket can make cold tea during hot

summer or take it out when fill other drinks. Side of the straight-grip design, in

addition to lie down the pitcher also makes use easy catches when pouring the drink.


Figure 11 Acrylic pitcher

Through this activity people vote the product that they like most and leave the

comment. MUJI will select 20 people to give them gift that MUJI Japan limited.

The questionnaire about action experience in our research display our sample

agreed in response to the question “Think of My Lifestyle. (See Figure 8)” In the

business, the life style became the tool that can help sales to target the customers, and

they could diligently let products to fit consumer's anticipation. For example, since

MUJI had been established, MUJI diligently pondered how to balance the subject

between new products’ development and save earth from destroy. After working for

years, MUJI uses organic cotton which comes from Turkey, and the cotton all grows

above three years has not employed the agricultural chemicals or the chemical

fertilizer paddies. This is not the first time MUJI imports organic cotton products, but

the price is reasonable rather than general market price. At the same time, MUJI


product quality is better than others. This action reveals MUJI brand spirit fully—be

kind to earth.

5.2 Suggestion for Future Researches and Advice from Our Study

5.2.1 Advice from the Real Practice

We suggest MUJI could stimulate customers’ sense and feel that touched

customers more by increasing more marketing experiential about sense, feel, think,

and relate. Strengthen the close relationship between MUJI and consumers and let

them have a wonderful experience by providing good service or products. Therefore

influence their brand loyalty.

Schmitt (1999) emphasized that the feel of specific groups can provide a

powerful starting point for relate marketing experiential. Customers can chase the

sense of belonging or identifying by buying MUJI products. However, MUJI closed

with customers through offering co-brand credit card. The customer will identify

MUJI brand image and connection if they own MUJI co-brand credit card.

5.2.2 Restrictions in Study

Sampling location: Due to insufficient time and resources and widespread

locations of MUJI in Taiwan have been sampled. As a result, the conclusions could

not be properly applied to the satisfactions toward MUJI from all the consumers in the

whole Taiwan.


Sampling size: Due to insufficient time and resources, only 63 effective

questionnaires have been collected. The conclusion would be more remarkable and

representative under a larger sampling size.


REFERENCE

Chi-Pin Chen. (2002). The effect of perceived of quality product on consumer

satisfaction and brand loyalty – for con contact lenses lotion market in Taipei city.

Tatung university graduate school of management master thesis.

Jr-Hua Liu. (2000). A Study of the Relationship between Web User’s Experience and

Loyalty- The Case of Content Provider Sites. Chung Yuan Christian University

of information management master thesis.

Schmitt, R. (1999). Experiential marketing. Journal of Marketing Management, 15(1),

53-67.

Schmitt, B. H. (1999). Experiential marketing. New York: The Free Press

Urde, Mats. (1994). Brand orientation- a strategy for survival. Journal of Consumer

Marketing, 11(3), 18-32.

Wen-Li Chen. (2003). An Empirical Study on the Relationships among Space Image,

Life Style, and loyalty of the Starbucks' Customers. Chung Yuan Christian

University of interior design master thesis.

Watanabe Yonehide. (2006). Innovation of MUJIRUSHI. The Shogyokai Publishing

co.LTD.Japan.

Yu-Chun Liu. (2003). The Effects of Experiential Marketing and Relationship Bonds

to the Online Loyalty. I-Shou university of management of science master thesis.


Ye-Chuen Li (2008). A Discussion of Applying Experiential Marketing to Leisure

Agriculture with AHP. Journal of American Academy of Business, Cambridge,

ABI/INFORM Global pg. 98


APPENDIX

Dear all: This is a questionnaire about MUJI’s experiential modules and the relationship with brand loyalty. This is only used for class research. Please finish filling out this questionnaire patiently. All data are only used for academic research. Finally, thank you for your support and assistance very much.

National Chiao Tung University Management ScienceThe research team of marketing management

PART 1 Experiential Modules

□ □ □ □ □

1. Quality of MUJI of merchandises is really good. □ □ □ □ □2. Merchandises of MUJI are simple but design to let you

like them. □ □ □ □ □3. Brand of MUJI and the label let you have deep

impression. □ □ □ □ □4. The atmosphere, the music, and the overall shopping environment

of the MUJI shop let you feel joyfully satisfies. □ □ □ □ □5. The whole performance of MUJI lacks the demand

of feeling. □ □ □ □ □6. The environment of MUJI let me have warm feelings. □ □ □ □ □7. The service attitude of MUJI lets me satisfy, receive

the respect. □ □ □ □ □8. The non-brand meaning of MUJI makes me in a stew. □ □ □ □ □9. The commodity of MUJI lets people feel that is in

keeping with the fashion. □ □ □ □ □10. The whole performance of MUJI has not affected my

mood response. □ □ □ □ □11. MUJI’s product can simulate my curiosity. □ □ □ □ □

Strongly disagree

Neutral

Disagree

Agree

Strongly agree


12. MUJI’s product can make me feel surprising. □ □ □ □ □13. MUJI’s product can simulate me the thinking of other related thing,

like lifestyle and environmental protection …etc. □ □ □ □ □14. MUJI’s product can simulate my imagination. □ □ □ □ □15. MUJI’s products never simulate my creative thinking. □ □ □ □ □16. I would like to join the MUJI’s net community. □ □ □ □ □17. MUJI holds special theme events attract me to participate. □ □ □ □ □18. MUJI reminds me of activities I can do. □ □ □ □ □19. MUJI tries to make me think about my lifestyle. □ □ □ □ □20. MUJI does not try to make me think about actions

and behaviors. □ □ □ □ □21. MUJI causes me to establish the relations with the others. □ □ □ □ □22. The MUJI products can cause between me and

friend's discussion. □ □ □ □ □23. MUJI enables me to have the sense of belonging to

the company. □ □ □ □ □24. MUJI causes me to associate own social activity

arrangement. □ □ □ □ □25. MUJI doesn’t let me receive identification with social. □ □ □ □ □

PART 2 Brand Loyalties

1. I won’t buy other similar brand because it has lower

price than MUJI □ □ □ □ □2. I will buy MUJI products next time. □ □ □ □ □3. I will recommend MUJI products or service to other people.□ □ □ □ □

PART3 Consumer Behavior

1. How many times you go to MUJI to expend during a year?

□1~ 5 times □6~10 times □11~15 times □16~20 times

□21~25 times □26~30 times □Over 30 times


2. How much money you approximately spend in MUJI each time?

□Below $100NT □$100NT~$500NT □$500NT~$1000NT

□$1000NT~$1500NT □$1500NT~$2000NT □Over $2000NT

3. What is your purpose when you go to MUJI? (Choose one)

□Buy the special price products □Buy the popular products

□Shopping □Hanging around □Others:

4. What is your satisfaction of MUJI overall?

□Very Good □Good □Neutral □Bad □Very Bad

5. Are you willing to expend on something in MUJI next time?

□Yes □No

PART 4 Personal Basic Data:

1. Sex:

□Male □Female

2. Age:

□Under 15 years old □16~20 years old □21~25 years old

□26~30 years old □31~40 years old □41~50 years old

□51~60 years old □Older than 60 years old

3. Marital status:


□Unmarried □Married

4. Education:

□Junior High School (including below) □Senior High School

□Five years college □University □Graduate school (including above)

5. Career:

□Student □ The military/civil service worker □ Manufacturing industry

□ Service industry □SOHO □ Others

6. Available Income:

□ Below 5000 □ 5000~10000 □ 10000~15000 □ 15000~20000

□20000~30000 □30000~50000 □ Above 50000

AbstractCHAPTER 1 INTRODUCTION1.1 Research Background1.2 Research Motivation1.3 Research purpose1.4 Research content and process

CHAPTER 2 LITERATURE REVIEW2.1 The Definition and Measurement of Brand Loyalty2.2 Experiential Marketing2.3 The introduction of MUJI

CHAPTER 3 RESEARCH METHODOLOGY 3.1 Conceptual Framework3.2 The Operating Definition of Research Variable3.3 Hypothesis3.4 Questionnaire Design

CHAPTER 4 STATISTIC ANALYSIS AND RESEARCH RESULT4.1 Sample Structure and Descriptive Statistics 4.2 Pearson Correlation Coefficient4.3 Regression Analysis4.4 Reasons customers love about MUJI

CHAPTER 5 CONCLUSION AND DISCUSSION5.1 Research Conclusion5.2 Suggestion for Future Researches and Advice from Our Study

REFERENCEAPPENDIX

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