Do People Really Care if it’s Phygital Retail? Exploring the Relationship Between Customer Experiences and Customer Behaviors

Abstract

Phygital is an approach that integrates digital technology into physical retail spaces to provide innovative and interactive customer experiences. As this approach becomes more widespread, understanding its effects on consumer behavior is crucial. This study aims to bridge this gap by investigating the factors that influence cognitive, emotional, technological, sensory, and social experiences in phygital retail. It also seeks to understand how these factors influence customer engagement, ultimately impacting customers’ patronage intentions and recommendation intentions. The study surveyed 380 customers in China who had experienced phygital retail. The results show that various dimensions of customer experience influence customer engagement, with sensory and social encounters having the greatest impact. Customer engagement, in turn, affects customers’ patronage intention and recommendation intentions. Importantly, this study examines how specific sub-dimensions of customer experience impact recommendation intentions in a phygital retail environment. These insights provide valuable strategic guidance for service-oriented retailers.