Intent vs. Impact: Mapping Perception and Financial Mismatches in Small To Medium Sized Business’ Experiential Marketing

Abstract

The shift from product to experience-centric marketing shows that consumers are increasingly putting a stronger emphasis on emotional, immersive, and participatory experience. Experiential marketing is the core concept of the shift, especially for retailers that place more value on experiences than transactions. Its effectiveness in large, structured organizations has been studied extensively in research, however, much less research has been done to explore how experiential marketing works in micro or small, indigenous firms that are regions where companies are more frequently found - such as in India. To tackle this question, the study adds to the lack of literature on discrepancies between retailer intent and consumer perception in small-business experiential marketing. But while brands make experiences that serve a purpose - engagement, building community, doing sales, etc. - consumers interpret these experiences on a subjective basis, with consequent gaps in meaning between what is desired and what is found in practice. To understand this, the study draws on qualitative exploratory methodology using semi-structured interviews with two primary stakeholders (small business retailers and consumers), who attended experiential events. This comparative perspective enables both theorising of how experiences are theorised and consumed by firms through the two way perspective and this will enable the enquiry into how experiences are theorised by businesses and consumed by consumers. The findings reveal a distinct inconsistency between desired outputs and actual experiences. Retailers are generally focused on a clear outcome, such as sales, or brand positioning, while consumers seek immersion, participation, emotional connection and memory. This is the reason that experiential marketing really does lead to intense relationships that last and have value over the long haul, but does not necessarily make it any more or less profitable or immediate in financial terms or return capital all the time. The contribution of this study was there to fill these gaps from marketing theory and financial decision making in MSMEs. It provides insight on the significance of integrating experiential intent with consumer perception and a holistic view on the link between experiential marketing to both business outcomes and economic performance levels of organisations in the low-resources sector.