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The Differentiation of Uppsala Independent Bookstores Based on Servicescape Theory

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The Differentiation of Uppsala Independent Bookstores Based on Servicescape Theory TVE-MILI19037 Master’s Thesis 30 credits 09/ 2019 The Differentiation of Uppsala Independent Bookstores Based on Servicescape Theory Jingya Lu and Zhuofan Wu Master’s Programme in Industrial Management and Innovation Masterprogram i industriell ledning och innovation Abstract The Differentiation of Uppsala Independent Bookstores Based on Servicescape Theory Jingya Lu and Zhuofan Wu Faculty of Science and Technology The study examines how independent bookstores differentiated Visiting address: themselves from other bookstore retailers, to satisfy their customer Ångströmlaboratoriet needs and then to achieve customer engagement. The research Lägerhyddsvägen 1 House 4, Level 0 proposes two questions as following: How do independent bookstores in Uppsala differentiate themselves in the book retailing industry? How Postal address: Box 536 do customers engage with independent bookstores? In order to 751 21 Uppsala answer these questions, qualitative research method was employed in Telephone: this study. This research took all of the seven independent bookstores +46 (0)18 – 471 30 03 in Uppsala as a sample, interviewed owner/managers of each of them, Telefax: and collected 85 questionnaires from their customers on the basis of +46 (0)18 – 471 30 00 the servicescape theory. The researchers employed the approach of Web page: http://www.teknik.uu.se/student-en/ qualitative data analysis. The analysis of the findings was based on Raffaelli’s 3C’s model, servicescape theory, and customer engagement theory. The conclusion of this study illustrates the actions of independent bookstores of differentiating themselves in the six dimensions of servicescape theory and indicates that both independent bookstore and their customers lay emphasis on the differentiation of functionality and employees. Furthermore, the customer engagement could be enhanced through the differentiation. Key Words: Independent Bookstore, Servicescape, Customer Satisfaction, Customer Engagement. Supervisor: David Sköld Subject reader: Peter Birch Examiner: David Sköld TVE-MILI19037 Printed by: Uppsala Universitet 2 Popular Science Summary Recently, the independent bookstores around the world are facing increasingly serious market conditions, for example, competition from other book retailers, increasing eBook sales, reductions in institutional budgets, and publishers selling directly to the consumer. An issue of what efforts the existing independent bookstores took to react to this trend arouse the interest of the researchers. Therefore, this study attempts to explore how independent bookstores keep running their business in such a difficult situation. To achieve this goal, the study examines what independent bookstores in Uppsala did to distinguish themselves from other bookstores, to retain their customers, and to create value together with their customers. The conclusion presents the actions of independent bookstores to differentiate themselves from other bookstore retailers in terms of the physical service environment and the service staff qualities. The result indicates that both independent bookstores and their customers considered functions and employees as critical issues for the development of independent bookstores. Furthermore, the independent bookstores could build and improve the relationship with their customers through the enhancement of the physical environment and the service staff qualities. The result of this research is important for the independent bookstores, the book retailing industry, and the society. From the perspective of independent bookstores, firstly, the conclusion could provide inspiration or guidance about their actions to satisfy their customers and keep running. Secondly, the questionnaire used in this study could serve as a reference for other independent bookstores to conduct customer investigation and to gain a better understanding of their customers. From the view of the whole book retailing industry, the existence of independent bookstores could ensure the diversity of the industry, promote positive competition in industry, and encourage the book retailing industry to maintain dynamic and innovative. Regarding as the social aspect, independent bookstores act as the cultural participant to offer a different purchasing point for customers and to provide places for cultural communication. Independent bookstores could also be viewed as social connectors to produce well-being for the community which the bookstores locate in. 3 Table of Contents Content of Figures ................................................................................................................. 6 Content of Tables ................................................................................................................... 6 Acknowledgments .................................................................................................................. 7 1. Introduction ........................................................................................................................ 8 1.1 Problematization ....................................................................................................................... 8 1.2 Aim and Research Questions ................................................................................................. 9 1.3 Structure of Thesis .................................................................................................................... 9 2. Background ..................................................................................................................... 11 2.1 Book Retailing Industry ....................................................................................................... 11 2.2 Independent Bookstore ......................................................................................................... 12 2.2.1 Introduction and Definition of Independent Bookstore .............................................12 2.2.2 Independent Bookstores in Different Countries ............................................................12 2.3 Book Market in Sweden ....................................................................................................... 14 2.3.1 History and Current Situation of Swedish Bookselling .............................................14 2.3.2 Types of Retailers ........................................................................................................................14 2.3.3 Market Share of Different Channels ..................................................................................15 3. Literature Review .......................................................................................................... 17 3.1 Independent Bookstores in Sydney ................................................................................... 17 3.2 The 3C’s Model of Independent Bookstores’ Differentiation ..................................... 17 3.3 An Empirical Study About Servicescape Theory .......................................................... 18 4. Theoretical Framework ................................................................................................ 19 4.1 The Theory of Servicescape ................................................................................................. 19 4.1.1 The Development and Definition of Servicescape Theory ........................................19 4.1.2 The Significance of Servicescape Theory..........................................................................20 4.2 The Framework of Servicescape Model ........................................................................... 20 4.2.1 Introduction of the Framework ............................................................................................20 4.2.2 Two Staging of Servicescape ..................................................................................................21 4.2.3 Customer Perceived Value ......................................................................................................23 4.3 The “3Cs” Factors of Independent Bookstores’ Resurgence...................................... 24 4.3.1 Community .....................................................................................................................................25 4.3.2 Curation ...........................................................................................................................................25 4.3.3 Convening .......................................................................................................................................25 4.4 Customer engagement .......................................................................................................... 26 4.4.1 The evolution of customer engagement theory ..............................................................26 4.4.2 Customer Engagement Cycle .................................................................................................28 4.4.3 Customer Engagement Matrix ..............................................................................................31 5. Methodology .................................................................................................................... 35 5.1 Research Design ..................................................................................................................... 35 5.2 Data Collection ....................................................................................................................... 35 5.2.1 Semi-structured
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