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LAPPEENRANTA UNIVERSITY OF TECHNOLOGY School of Business and Management Master’s degree Programme in International Marketing Management (MIMM) Mikko Leinonen Customer Experience through the Customer Journey in a Multichannel Envi- ronment – Case Veikkaus 1st Supervisor: Professor Sanna-Katriina Asikainen 2nd Supervisor: Associate Professor Anssi Tarkiainen ABSTRACT Author: Mikko Leinonen Title: Customer Experience through the Customer Journey in a Multichannel Environment – Case Veikkaus Year: 2018 Faculty: LUT School of Business and Management Master’s Programme: International Marketing Management Master’s Thesis: Lappeenranta University of Technology 122 pages, 8 figures, 4 tables and 2 appendices Examiners: Professor Sanna-Katriina Asikainen Associate professor Anssi Tarkiainen Keywords: Customer experience, customer journey, multichannel en- vironment, gaming and gambling industry The purpose of this thesis is to examine customer experience creation through the customer’s journey in a multichannel environment with a case study of a company operating in a gaming and gambling industry. The examination includes vast litera- ture review on currently important topics in this service-centered environment. Creating positive and memorable customer experiences has become the core of service offerings and the leading managerial objective. Customer journey approach has recently become popularly used method to analyze the total customer experi- ence creation process through different company offered touchpoints. The im- portance of customer journey approach and customer experience are closely related to the current nature of marketplace, where technology and technology assisted service encounters has increased the number of delivery channels and touchpoints. Customers are now interacting with companies through a plethora of channels and touchpoints, therefore, customer experience and customer behavior in this evolving marketplace are viewed as one of the most important research challenges in general and for the case company. TIIVISTELMÄ Tekijä: Mikko Leinonen Tutkielman nimi: Asiakaskokemus asiakkaan kulkeman palvelupolun aikana monikanavaisessa maailmassa – Case Veikkaus Vuosi: 2018 Tiedekunta: LUT Kauppatieteellinen tiedekunta Maisteriohjelma: International Marketing Management Pro Gradu -tutkielma: Lappeenrannan teknillinen yliopisto 122 sivua, 8 kuvaa, 4 kaaviota ja 2 liitettä Tarkastajat: Professori Sanna-Katriina Asikainen Tutkijaopettaja Anssi Tarkiainen Avainsanat: Asiakaskokemus, asiakaspolku, palvelupolku, moni- kanavaisuus, kasino- ja uhkapeliympäristö Tämän tutkielman tarkoituksena on tarkastella asiakkaan kokemuksen muodostu- mista asiakkaan kulkeman palvelupolun aikana monikanavaisessa maailmassa. Tämä tutkielma on toteutettu tapaustutkimuksena, jossa kontekstina on kasino- ja uhkapeliympäristö. Tutkielmassa on toteutettu laaja kirjallisuuskatsaus, jossa on tar- kasteltu nykyaikaisessa, ja palvelukeskeisessä maailmassa olevia tärkeitä aiheita. Positiivisten ja vahvojen asiakaskokemuksien luominen on tällä hetkellä ydinasia palvelusuunnittelussa. Asiakaspolku-tarkastelu on kasvattanut suosiotaan tapana tutkia asiakkaan kokemuksen muodostumista yrityksien tarjoamissa kohtaamispis- teissä. Asiakaskokemuksen ja asiakaspolun tärkeys liittyy läheisesti markkinoiden tämän hetkiseen kehitykseen, jossa teknologia ja teknologian avulla toteutetut asia- kaskohtaamiset ovat moninkertaistaneet kanavien ja kohtaamispisteiden määrän. Asiakkaat kohtaavat yrityksen useiden kanavien ja kohtaamispisteiden kautta, joten asiakkaiden käyttäytyminen ja asiakaskokemuksen muodostuminen ovat yksiä tär- keimpiä kiinnostuksen kohteita, niin yleisesti kuin tutkivalle yrityksellekin. ACKNOWLEDGEMENTS This thesis project has been one long and challenging journey. There have been struggles and bad timings that almost made me scrap this project and start anew, but now I can be glad that I didn’t lose hope and just kept going forward. This mo- ment has been long waited, and finally I stand here. I am grateful, and ready to move towards new challenges. First, I would like to show my gratitude to the case company Veikkaus. I would like to thank for giving me this interesting topic and helping me to conduct the research. Especially, I would like to thank the HR department of Veikkaus and the interviewees that made this research possible. I would like to thank my thesis supervisors, especially Anssi Tarkiainen for providing help and support through the tough times I faced during this project, and his valuable answers to my questions. Also, I would like to thank the LUT organization for the time I spent there and the people I met during my studies. Finally, and most importantly, I would like to thank my family and my closest friends for their understanding, support and providing me motivation to continue. Especially, I would like to thank my parents Mika and Paula, who never stopped believing in me, helped me to find the needed answers and ways, and supported me through my entire studies. I also want to thank my brother, Antti, my sister, Pauliina, and my grandparents for their understanding and supportive attitudes. Without the help I received, I wouldn’t have made it here, so thank to all of you who helped me to make this possible. Hyvinkää, 24.5.2018 Mikko Leinonen Table of Contents 1. INTRODUCTION ................................................................................................. 1 1.1. Background .................................................................................................. 3 1.2. Literature Review .......................................................................................... 6 1.3. Research Questions ................................................................................... 10 1.4. Definitions ................................................................................................... 12 1.5. Theoretical Framework ............................................................................... 14 1.6. Research Methodology ............................................................................... 15 1.7. Delimitations ............................................................................................... 16 1.8. Structure of the Thesis................................................................................ 17 2. BACKGROUND FOR UNDERSTANDING MULTICHANNEL CUSTOMER JOURNEY ............................................................................................................. 18 2.1. Decision-Making Process ........................................................................... 19 2.1.1. Pre-Purchase Stage ............................................................................. 20 2.1.2. Service Encounter Stage ..................................................................... 23 2.1.3. Post-Purchase Stage ........................................................................... 26 2.2. Customer Experience ................................................................................. 29 2.2.1 Customer Value .................................................................................... 32 2.2.2. Online Customer Experience ............................................................... 35 2.2.3. Experience-Centricity in Services......................................................... 38 2.3. Self-Service Technologies .......................................................................... 41 2.4. Customer Experience and Decision-Making in Gaming and Gambling Industry .............................................................................................................. 44 3. MULTICHANNEL CUSTOMER JOURNEY ....................................................... 48 3.1. Service Processing and Customer Journey ................................................ 50 3.1.1. Customer Journey ................................................................................ 52 3.1.2. Customer Journey Touchpoints and Touchpoint Elements .................. 54 3.1.3. Typologies of Customer Journey ......................................................... 60 3.1.4. Customer Journey Mapping ................................................................. 62 3.2. Multichannel Environment and Customer Behavior .................................... 64 3.2.1 Multichannel Customer Management .................................................... 67 3.2.2. Multichannel Segmentation .................................................................. 70 3.2.3. Decision-Making in Multichannel Environment ..................................... 72 3.2.4. Channels .............................................................................................. 76 3.2.5. From Multichannel to Omnichannel Environment ................................ 79 4. RESEARCH METHODOLOGY ......................................................................... 83 4.1. Research Approach .................................................................................... 83 4.2. Data Collection ........................................................................................... 84 4.3. Data Analysis .............................................................................................. 87 4.4. Validity and Reliability ................................................................................. 88 5. EMPIRICAL RESULTS AND FINDINGS ........................................................... 90 5.1. Introduction to the Case Company, Veikkaus ............................................