“I found this bar on my own!” Here is what happens next…

Have you ever found a bar or a café on your own, without any prior information or recommendations from others? If yes, have you ever wondered what consequences the sense that this venue is ‘your’ discovery might have on your subsequent relationship with the venue? A new research by two contributors of this blog, Michail Kokkoris and Bernadette Kamleitner (WU Vienna University of Economics and Business), together with Erik Hoelzl (University of Cologne), examines this question and provides novel insights into service marketing. A series of studies including various methodologies (field study, representative survey, online and lab experiments) and various service domains (cafés, bars, restaurants) provides evidence that the way a venue is first found has an impact on customers’ attitudes and behaviors towards this venue. Specifically, when customers have the sense that they discovered a venue on their own (rather than assisted by some information or others’ recommendations), they report stronger bonds with the venue in terms of self-connection, emotional attachment, and psychological ownership. In turn, stronger customer bonds translate into higher customer loyalty. For example, a survey with a presentative sample of Viennese coffee-goers showed that customers who have discovered a venue on their own spend more money in the specific venue compared to other venues, plan to come back more often and are willing to pay more even in the case of price increases. However, this seems to hold only for discoveries with a positive outcome, that is, when the overall experience with the venue is outstanding in the first place. In short, the sense of own discovery may have some previously unacknowledged benefits for businesses – an idea that is perhaps ‘heretical’ in the era of social media, where most businesses strive for attention and visibility. Letting customers discover venues on their own and have this ‘eureka’ experience can have beneficial managerial implications. Next time you accidentally stumble on a bar that no one has talked to you about, be prepared: A long-lasting, intimate relationship between you and the bar might be just beginning!

You can read more about this research here.

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