Creating retail customer experience through distribution of decision authority between headquarters and stores

Abstract

Even when customers are satisfied, they could be having experiences not intended by the company. By comparing dyad relationships between headquarters and stores of a Japanese auto dealer company, this paper examines how decision authority on touchpoints should be distributed to create a superior customer experience. Overall, decision authority was distributed towards stores; however, two stores known for high-quality customer experiences had headquarters exercise decision authority on brand promotion touchpoints. Further, these two stores adapted interpersonal touchpoints to brand promotion touchpoints created by headquarters. In short, from a brand perspective, it is desirable to differentiate decision authority while achieving consistency between touchpoints.