Contents lists available at ScienceDirect Journal of Business Research journal homepage: www.elsevier.com/locate/jbusres Efects of experiential motivation and customer engagement on customer value creation: Analysis of psychological process in the experience-based retail environment Myoung-a An, Sang-Lin Han ⁎ School of Business, Hanyang University, Seoul 04763, South Korea ARTICLEINFO Keywords: Customer engagement Social Interaction Experiential motivation Value creation ABSTRACT This study investigates the psychological motivation of customer engagement and examines the underlying factors of customer behavior in ofine retail environments. Our study is based on the experience economy theory and self-determination theory. First, we investigated the relationship between perceived psychological benefts (autonomy, competence, and relatedness) and intrinsic motivation. We also analyzed the relationship between intrinsic motivation and customer engagement (conscious participation, enthusiasm, and social interaction). Second, we examined the relationship between customer engagement and customer value creation (functional value, hedonic value, and social value). Third, we studied the efect of customer value creation on customer purchasing behavior (shopping memory, customer satisfaction, word-of-mouth, and revisit intention) and the mediating efect of the hedonic value between customer engagement and shopping memories, as well as between customer engagement and customer satisfaction. Finally, we investigated the mediating efect of shopping ex- perience between the hedonic value and customer satisfaction. 1. Introduction Many retailers try to gain a competitive advantage in the ofine retail market by providing not only a convenient shopping environ- ment, but also an unforgettable experience to consumers. In this ex- perience-based shopping environment, customers are more likely to voluntarily participate and actively take part in the shopping experi- ence than in the traditional retail shopping environment. Thus, it is important for retailers to create experience-based value for customers. In Future Shock, Tofer (1971) suggests that future consumers will pay a premium for unforgettable experiences, and experiences will be the new core of the economic environment. Likewise, this trend to- wards an unforgettable retail experience is part of a diferentiated economy that goes beyond simply ofering products and services. The retail environment that ofers special experiences to consumers based on a customized consumer lifestyle creates value through vo- luntary customer engagement. A recent study showed that customer engagement is an important factor in creating customer value by ex- amining its efect on customers’ perceived value. However, the study of customer engagement has mainly focused on its performance in the marketing feld (Hapsari, Clemes, & Dean, 2017; Kumar & Pansari, 2016) and on the online environment (Kim, Kim, & Lee, 2016) This study aims to investigate the psychological motivations of customer engagement and examine the underlying factors that infu- ence customer behavior in ofine retail environments. Our study is based on the principles of the experience economy theory and the self- determination theory (SDT). We frst investigated the relationship be- tween perceived psychological benefts (autonomy, competence, and relatedness) and intrinsic motivation. At the same time, we analyzed the relationship between intrinsic motivation and customer engage- ment (conscious participation, enthusiasm, and social interaction). Second, we attempted to examine the relationship between customer engagement and customer creation value (functional value, hedonic value, and social value). Then, we hypothesized that customer creation value afects customer purchasing behavior (shopping memories, cus- tomer satisfaction, word-of-mouth, and revisit intention). In addition, we attempted to measure the mediating efect of hedonic value between customer engagement and shopping memories as well as between customer engagement and customer satisfaction. Furthermore, we in- vestigated the mediating efect of the shopping experience between hedonic value and customer satisfaction. Finally, we discussed the im- plications of diferentiated competitive advantage in an ofine retail environment based on customer experience. For this study, we gathered data from the respondents who had been to experience-based shopping https://doi.org/10.1016/j.jbusres.2020.02.044 Received 26 November 2018; Received in revised form 21 February 2020; Accepted 24 February 2020 ⁎ Corresponding author. E-mail addresses: bojogae0323@naver.com (M.-a. An), slhan@hanyang.ac.kr (S.-L. Han). Journal of Business Research xxx (xxxx) xxx–xxx 0148-2963/ © 2020 Elsevier Inc. All rights reserved. Please cite this article as: Myoung-a An and Sang-Lin Han, Journal of Business Research, https://doi.org/10.1016/j.jbusres.2020.02.044