The SWIPE Strategy of Experiential

Marketing Mix: A Case Study of

GERAGEM

Minghui Qian, Yanhong Liu

School of Information Resource Management, Renmin University of China, Beijing,
100872, China
School of Business, Renmin University of China, Beijing,100872, China
mhqruc@gmail.com

This paper is mainly about the experiential marketing mix strategy. It sums up the distinguishable
characteristics of experience and experiential marketing using deductive and inductive methodology
based on literature review and in-depth interviews, generalizes the strategy of experiential marketing
mix, namely SWIPE, in comparison to the traditional and classic 4P marketing mix, and verifies the new
strategy with a typical case study of GERAGEM, a Korean company.
Keywords: experience, experiential marketing; marketing mix; experiential marketing mix

According to the distinguishable characteristics of ve the established goal, it is necessary to combine

experience and experiential marketing, the paper
generalizes the SWIPE strategy of experiential
marketing mix, namely Situation (S), Word of Mouth
(W), Interaction (I), Price (P) and Experience (E),
and verifies the new strategy with a typical case study
of GERAGEM, a Korean company.
these variables effectively. Although there are many
controllable marketing variables, so far the greatest
impact on the marketing mix is 4P, summarized by
McCarthy (1960) in his book Basic Marketing:
product, price, place and promotion. Since then, 4P is
widely recognized and used in research and practice
areas.

1. RESEARCH ON MARKETING MIX

Marketing mix is not only an important concept in
modern marketing theory, but also is an effective tool to
develop marketing strategies. In 1953, Neil Borden took
the lead in proposing the term “marketing mix”,
meaning that the market need influenced by
marketing variables to some extent. In order to achie-
Marketing mix is still a hot topic in marketing
theory Scholars have made great efforts to the
research not only on expanding the depth and width
of each element of marketing mix, but also on
applying the combination of the mix. Particularly,
much attention has been paid to the evolution, cha-
nges and new combinations of marketing mix in the

Journal of Chinese Marketing, 78

Vol.2 No.1 (April 2009), 78-87
field of industry research and marketing paradigm.
More importantly, marketing mix is not only an
important tool to guide companies to do marketing
practice step by step, but also the most common and
widespread tool to attract many researchers to study
it.
2. CURRENT RESEARCH ON EXPER
IENTIAL MARKETING
2.1 Differences between Experience and Product /
Service
Alvin Toffler, an American futurist, showed in his
book Future Shock (1970) that experience economy
would be the latest wave of development, after the
evolution of agriculture economy, industry economy
and service economy. Joseph Pine Ⅱ and James H.
Gilmore, cofounders of Strategic Horizons LLP,
published the book The Experience Economy: Work
Is Theatre and Every Business a Stage by Harvard
Business School Press in April 1999. Since then,
“experience” as an economic term has been widely
focused on.
Joseph Pine Ⅱ and James H. Gilmore (1998)
believed that “an experience occurs when a company
intentionally uses service as the stage, and goods as
props, to engage individual customers in a way that
creates a memorable event”. Only when a customer
would like to pay for the experience, could it be
considered as a kind of economic offering. They also
mentioned that experience is the fourth economic
offering after commodities, goods and services, and is
also “a distinct economic offering, as different from
services as services are from goods”; “Commodities
are fungible, goods are tangible, services are intang-
Table 1 Comparison on Product, Service and Experience
Product
Form of Goods Tangible
Attributes of Goods Homogeneity
Transfer of Goods Separated progress of
ible, but experiences are memorable.” “ Buying a
kind of experience is to spare time on enjoying a
series of memorable events supplied by companies,
like drama performance, and customers are person-
ally on the scene.”
Chiara Gentile, Spiller. Nicola and Noci. Giuliano
（2007）defined customer experience in terms of the
evolution of the relationship of company and
customer. They mentioned, “The customer experience
originates from a set of interactions between a
customer and a product, a company, or part of its
organization, which provoke a reaction. This experi-
ence is strictly personal and implies the customer’s
involvement at different levels (rational, emotional,
sensorial physical and spiritual). Its evaluation
depends on the comparison between a customer’s
expectations and the stimuli coming from the
interaction with the company and its offering in
correspondence with the different moments of contact
or touch-points”.
The experience ( Wang Tao, Cui Guohua, 2004)
is a nice and memorable feeling for the customer who
is a necessary member to participate, design and
engage in the whole sales process in the consumption
situation provided by the company.
Experience, according to Zhang Shiju (2005),
could be defined on two facets. In terms of
consumers, experience is a nice feeling after
customer experienced or purchased. In terms of
company, experience is an economic offering of
them.
Service Experience
Intangible Memorable
Heterogeneity Completely personalized
Simultaneous progress of Simultaneous progress of
Journal of Chinese Marketing, April 2009 / 79
 production, distribution production, distribution and production, distribution
and consumption. consumption and consumption, and to
continue the process after
the consumption.
A kind of process or A kind of process,
Characteristic of Goods A kind of goods
activity influence or feeling
To achieve the sale in the To achieve the sale in and
Realization of Value of
Factory production interactive exchange after the interactive
Goods
process exchange process
Experience does not
The exchange does not
The exchange involved the belong to the provision of
Ownership of Goods involve the transfer of
transfer of ownership experience, but belongs
ownership
to every consumer
Source: Concluded by this researcher after referring to relevant literature.

Observing from the definition of "experience" by
scholars, both domestic and abroad, and the contrast
between experience and traditional economic offering
or service (shown in Table 1), we can see that
experience, as a special economic offering, is differe-
nt from product and service in the following aspects:
First, considering the form of goods, products are
tangible entities while services, whether associated
with products or not, are intangible activities and
processes. Experience, on the other hand, is the
memorable feeling and psychological process.
course, many services are intrinsically a kind of
experience. However, the latter emphasizes more on
the unforgettable experience and feeling of customers
and also on the effect of being apperceived.
Second, considering the attribute of goods,
products provided by companies usually are homo-
geneous. Services, due to variation of service
providers, are heterogeneous. Experience, however,
is based on the personal background, experiences,
understanding and recognizing of customers and
consumers, and is therefore totally personalized.
Third, considering the transfer of goods, products
are produced for consumers’ selection and consu-
mption, and the process of production, distribution
and consumption is separated. In the course of
service providing, it is a simultaneous process of
production, distribution and consumption. In this
sense, experience and service are similar, because the
process of their production, distribution and consum-
ption are both simultaneous. However, the difference
is that various feelings developed in the course of
experience do not finish along with the end of consu-
mption, and still continue after the consumption.
Forth, considering the characteristic of goods,
product is a physical entity, while service is an
activity or a process, and experience is an integration
Of of process, impact and feeling.
Fifth, considering the way to bring value of goods,
products have had the value after being produced in
factories, and transfer the value through exchange
process. The value of service is realized in the pro-
cess of exchange, and the value of experience is reali-
zed in and after the process of interactive exchange.
Sixth, considering the ownership of goods, the
exchange of products transfers a tangible product
from producers to consumers, which involves the
transfer of ownership. Service is an activity or a
process provided by producers or dealers, which does
not involve the transfer of ownership. However,
experience is consumer’s seeing, feeling and thinking
elements stimulated by producer or dealer, which
varies varying from person to person, and belongs to
each consumer only.

80 / Journal of Chinese Marketing, April 2009

 In short, experience is a completely intangible
process, effect and feeling which is far beyond
product or service and has to take the use of product
or service as a carrier. Experience begins from the
interactive process between experience maker (comp-
anies) and subject (customer), and still continues
whether the interaction is finished or not.
2.2 The Difference between Experiential Marke-
ting and Traditional Marketing
In the article Welcome to the Experience Economy
published in the Harvard business Review (1998),
and the book The Experience Economy, Joseph Pine
Ⅱ and James H. Gilmore interpreted consumption
characteristics in experience economy, though they
didn’t put forward the concept of experiential
marketing. Bernd H. Schmitt (1999) definitely
brought forward the concept of experiential
marketing in his book Experiential Marketing. He
thought that experiential marketing is an experience-
oriented marketing and management model, the
methodology of marketing should be redefined and
redesigned in terms of the following five elements,
sense, feel, think, act and relate.
According to Chinese researchers Wang Tao and
Cui Guohua (2004), experiential marketing refers to
the company's creating an atmosphere and designing
a series of events so that the customers become actors
that "act" in such environment, during which the
customers will gain memorable experience due to
active participation, and will pay a premium for
pleasure.
Yuan Yue (2005), a member of Lingdian
Investigation Company, stated that in experiential
marketing, namely the SHUP method, the emotional
behavior of every person consists of four elements:
seeing, hearing, using and participating, where the
customers' feeling, both sensational and behavioral,
are emphasized.
Schmitt (1999) thought that traditional marketing
has four key characteristics: focusing on product
features, performance and efficiency; narrowly
defining the product category and competition;
customers are rational decision makers; marketing
methods are analytic, quantitative and spoken.
However, four key characteristics of experiential
marketing are: focusing on customer experience,
testing consumer situation, customers are rational and
emotional, many methods and sources can be used.
Comparing the above scholars point of views in
the definition and key characteristic analysis of
experiential marketing, we can draw the following
conclusions about differences between experiential
marketing and traditional marketing:

Table 2 Differences Between Experiential Marketing and Traditional Marketing

Traditional Marketing Experiential Marketing

Theoretic base Customer is rational. Customer is both rational and emotional.
Pay attention to product or service
Attention Pay attention to customer experience.
feature, quality and level.
Marketing One way communication from company Interactive communication between
Communication to customer. company and customer.
Recipient or passive participant (a certain
Role of Customer Leading actor (absolute initiative).
degree of interaction)
Source: Concluded by this researcher after referring to relevant literature.

Journal of Chinese Marketing, April 2009 / 81

2.2.1 Different Theoretical Base
Traditional marketing believes that customers are
emotional, and customers buy products or services in
order to meet their materialistic needs. However,
experiential marketing breaks the traditional
"rational" assumptions and considers that the custom-
mer is both a rational and emotional purchaser,
focusing on meeting their emotional and personalized
demand.
2.2.2 Different Attention
Traditional marketing emphasizes on the features,
quality and level of products and services, and uses
these strategies in the hope of developing competitive
advantage for corporations; Experiential marketing,
however, focuses on providing customers an unfor-
gettable experience, and arising a fun, pleasurable
and emotional atmosphere in the consumption
process, thus encouraging customers to pay “trans-
ferring value” for the "experience". In comparison,
the former emphasizes particularly the satisfaction of
consumption result, and the latter emphasizes
particularly the satisfaction of consumption process.
2.2.3 Different Marketing Communication
As for traditional marketing, marketing commu-
nication, whose information only flows from the
company to customer, pays more attention to the
promotion of price, quality and function. In this
process, information is a one-way flow. Company
plays a leading role in this communication process.
Experiential marketing, however, emphasizes the
Table 3 Comparison of 4P in Traditional Marketing and Experiential Marketing
Traditional Marketing
Product To meet customers’ material needs by
aggregated function of product.
Price Cost-effectiveness of product or service.
Place To establish distribution network
Promotion Awareness and dissemination of product
or service.
Source: Concluded by this researcher after referring to relevant literature.
82 / Journal of Chinese Marketing, April 2009
round-way information flow, focuses on the
consumption atmosphere cultivation, and integrates
and respreads marketing information by two-way
interaction.
2.2.4 Different Role of Customers
As for traditional marketing, customer is a recipient
or a participant for product or service, Despite certain
degree of interaction, they are often passive recipient
of economic offering. Experiential marketing, how-
ever, emphasizes the active participation of customer.
Experience as an economic offering can be trans-
ferred to customers only when they actively engage
in the process of experience activities.
2.3 Traditional Marketing 4P Reflected in Experi-
entail Marketing
As we learned from the above analysis, research on
experience and experiential marketing are customer-
focused, based on the assumption that the consumer
is both rational and emotional. Based on this
assumption, 4P in experiential marketing should be
reinterpreted with new appeals. We can find the
effective combination of marketing variables in
experiential marketing by analyzing value appeals
applying to traditional 4P mix (See Table 3).
2.3.1 Product
In traditional marketing, product value achieves
customer’s awareness by communication. Therefore,
the product strategy focuses on gathering product
function which is easily communicated to and
Experiential Marketing
To satisfy customers by their identification
with their experience.
Customer value experience
To provide interactive sites
Results by word-of-mouth
recognized by customers. In experiential marketing,
product value is cognized and accepted through
interactive experience, therefore, the product strategy
focuses on product function that allow customers to
accept product features in mind. In this sense, it is
important to add product features or improve cust-
omer impression of product function by creating
unforgettable atmosphere.
2.3.2 Price
In traditional marketing, pricing strategy is adopted to
achieve cost-effectiveness. The more features, the
better function, the lower cost, then the better value
for money. This pricing strategy also needs to
compare between rivals. In experiential marketing,
pricing strategy is developed by customer expe-
rienced value. The longer the customer experiences,
the higher degree the customer satisfies, and the more
money the customer would be willing to pay.
2.3.3 Place
In traditional marketing, place strategy is to cover
more customers, so the place design emphasizes the
coverage of channels network and the vitality of
terminal channel, which can be built in virtue of
community channels. In experiential marketing, place
strategy rather remains the store terminals or contacts
than an interactive situation which is to serve for
customer experience.
2.3.4 Promotion
In traditional marketing, promotion strategy is to
attract the attention of customers. The fundamental
purpose of promotion is communication, to help
customers better understanding the value of products.
In experiential marketing, promotion strategy is
mainly to realize the recommendation among custom-
mers through word-of-mouth. The fundamental
purpose of promotion, in this condition, is to end
selling with customer satisfaction.
3. EXPERIENCE MARKETING MIX
STRATEGY AND ITS MAIN ELEM-
ENTS
In comparison with traditional 4P marketing mix
strategy, according to the distinguishable characteri-
stics of experience and experiential marketing, this
paper generalizes five main elements SWIPE strategy:
Situation (S), Word of Mouth (W), Interaction (I),
Price (P) and Experience (E), which should be
included in the experiential marketing mix.

Figure 1 The SWIPE Strategy of Experience Marketing Mix

Satisfaction of self-demand

Experience

Customer Value Experience Price Word of Win-win Choice

Experiential
mouth
marketing
Mix

Interaction Situation
Two-way Communication Stage of Experience

Source: Concluded by this researcher after referring to relevant literature.

Journal of Chinese Marketing, April 2009 / 83

3.1 Experience
Experience is the most basic element in the expe-
riential marketing mix. As 4P’s product, it describes
the offering by companies. According to Schmitt
(1999), there are five kinds of experience, including
feeling, emotional, thinking, action and relationship.
However, the experience recognized by customers
can not be clearly divide into the above five forms,
but a combination of them. Therefore, companies
should use a mixture of experience to expand its
result and strive to create a comprehensive experie-
nce including feeling, emotion, thinking, action and
relationship.
Experience, with multiple forms, can exist in
product and service, or exist as an individual comm-
odity. Therefore, experience, as an element of the
marketing mix strategy, can be a distinct means and
method of marketing, and play its role through any
element of experiential marketing mix. However, the
most important thing is that experience must have the
core function of satisfying customer self-needs and
realizing their self value.
3.2 Price
Price allows customers to pay for their "experience",
which is a basic character different from traditional
marketing. In experiential marketing, experience is a
necessary part of economic offering. More impo-
rtantly, the pricing of experience is not limited to the
cost, but customer value oriented. Under this conditi-
on, pricing is flexible. The core of pricing strategy
should make customers accept higher value awa-
reness of their offering, rather than increase the cost
effectiveness.
3.3 Situation
Situation is an “experiential stage” for customers. It
can be designed as a realistic scene or as a virtual
world. With this stage, corporations can take use of
many props to set off an interactive, fun, under-
standing and respectful atmosphere, even a living and
cultural atmosphere to raise customers’ interest and
effectively communicate with corporations. Situation
84 / Journal of Chinese Marketing, April 2009
not only can provide a unique and memorable experi-
ence for customers, but also can wake their potential
demand and buying desire.
3.4 Interaction
Interaction, an essential element of experiential mar-
keting, refers to two-way communication between
companies and customers. Interaction aims to build a
relationship of mutual assistance, demand and need
by way of communication and exchanges, so as to
practice experiential marketing. In the stage of
situation, the staff, at the scene, is either a "director"
or an "actor”. To present a vivid and true “drama”
and convey the theme, customers should be lured into
the designed event devotedly and made into a real
“actor”. Only when customers deeply participate in
the process of the designed event, can they really
engage in the situation, and become aware of the
value of experience.
3.5 Word of Mouth
Word of mouth is an integral element of experiential
marketing mix. The appeal of experience offering is a
process, an influence and a feeling, which is built on
the satisfaction of the customer’s emotional demands.
Therefore, in the situation stage, if customers are
willing to spread healthy and positive word-of-mouth,
they will be encouraged to be an "actor" or a
"director" to convey information to more customers.
This is often more realistic and effective than the
traditional mass media.
4. CASE STUDY ON CERAGEM EXP-
ERIENTIAL MARKETING
CERAGEM Co., Ltd, established in 1998 in Korea, is
now the largest provider of high quality thermal
massagers. CERAGEM offers an opportunity for
customers to experience a CERAGEM thermal mass-
ager free of charge at any of their retail distribution
centers located throughout the world. Since entering
into Chinese market in 2001, CERAGEM has built its
manufacturing factory and research institute in the
cities of Yanji and Tianjin, opened a Beijing Office
and set up more than 1700 product experiential
centers in about 30 provinces, cities and munic-
ipalities. CERAGEM has developed a long-term,
comprehensive after-sales service system, created a
distinctive model of free experiential marketing and
achieved remarkable success in the Chinese market.
From September to October 2007，a research
team from the Marketing Research Center of China
(MRCC) visited CERAGEM’s Beijing Office and
several experiential centers in Beijing, Shanghai,
Guangzhou, Shenyang and Chengdu. They collected
much useful and detailed first-hand material about
CERAGEM’s free experiential marketing by virtue
of extensive deeply interviews, questionnaire rese-
arch and follow-up research. We believe CERAGEM
is a typical case to validate the new framework of
experiential marketing mix (See Figure 2).
4.1 Product experience of CERAGEM
CERAGEM product is a kind of automatic thermal
massagers that combines massage and Ceragem
pressure™ with Radiant Infrared heat, emitted through
jade and Epoxy Carbon Panel for an overall rejuv-
enation. CERAGEM set up many experiential centers
to supply a place for target consumers to get a free trial
of their product so that in a long term customers are
willingly pay premium value on the basis of
experience.

——Customer
• Uniform price
• Warm home；
throughout the
• To Miss children；
country;
• Free forever；
• Limited sales
• Long life and healthy ——Customer
period;
wish；…… • To keep healthy;
• To bring healthy
——Staff member • To release regret;
back home;
• To purse love;…… • To deliver love and
• To buy after
——Company kindness; ……
recognization;
Satisfaction of self-demand • To earn money;
• Decision making
• To realize social ——Staff member
by the whole Experience
responsibilities; …… • To get reward……
family;
Customer Value CERAGEM
Price Word of Win-win Choice ——Campany
Experience Experiential Mouth
• To attract more
Marketing Mix
experience customers;
• To earn more money;
Interaction Situation • To better reward
Two-way Communication Stage of Experience
society；……

• Service teacher
• Site：experience center;

class; • Prop：- automatic thermal massagers;

-Friendly call;
• Experience
-Inspired slogan;
customer story;
-Indebted song;
• Customer
-Impressive activities;
communication;
…… • Actor：-Manager；
-Service teacher；
-elder customer；……
Source: Concluded by the researchers.

Journal of Chinese Marketing, April 2009 / 85

 In the course of CERAGEM product experience,
three facets of emotional needs are met: First, in
terms of customer, CERAGEM introduces traditional
Korean culture—— calling "Dad" and "Mom" to the
elder, which narrows the gap between buyers and
sellers, locking the complex emotional needs of the
elder who often miss their children, pursing good
health and saving more money, and becoming an
effective way for them to enjoy their bore and lonely
lives. Second, in terms of staff member, they are
strongly identified with CERAGEM culture and
responsibility. They regard “service teacher” as a work
of “pursuing love” to achieve "self-realization needs,"
the highest state. Third, in terms of corporation, any
companies are to be for profit, and we can learn the
social responsibilities of CERAGEM from their
strategies of long-term free trial experience, from their
ideas of taking care of the elderly, and from their
vision of providing a happy and healthy lifestyle.
4.2 Experience Value of CERAGEM
The pricing and selling policy of CERAGEM is
considerably strict. Being a retail distributor, it is
necessary to abide by the company’s sales policy, to
pay a high deposit, and to accept the company's strict
control and supervision.
According to the sales policy of CERAGEM,
“customers only can purchase products after at least
one month of experience. A newly opened experience
center does not be permitted to sell products in less
than three months”. It means that experience centers
can not sell their products to a customer who has not
experienced for more than one month, even if the
customer catches up with the “marketing period”.
Similarly, the newly opened center also can not sell
their products even if it catches up with the “mar-
keting period” in less than three months. This policy
reflects its responsible attitude toward customers, and
will have a demonstrable effect. More importantly, it
is easy to have a sense of trust for customers.
The sales policy also says that retail distributor
can only sell products during an appointed marketing
period decided by the company. This period is very
86 / Journal of Chinese Marketing, April 2009
short, three to four times a year, each less than a
week’s time. This unique sales policy hoists the
appetite of customers who are urged to release their
long, strong emotional needs in a limited period, and
speed up or shorten their decision-making process.
CERAGEM’s long-term free experience is to ena-
ble customers to purchase products after fully receivi-
ng the product value. For customers who can afford it,
they still keep a degree of satisfaction after paying a
premium price to buy products. However, for customers
who can not afford it, their psychological pressure may
be increased with the long term free experience, so they
will do their utmost to reward the company.
4.3 Situation Stage of CERAGEM
CERAGEM experience center is a stage to supply
free thermal massagers, to deliver the company’s
healthy idea, to show its kinds of products and to feel
its love of culture. At this stage, customers could
experience a quality thermal massage machine, hear
the long-hoped call of “Dad” or “Mom” and inspire
thankful slogans and songs. Managers, service
teachers and elderly customers counterchange their
roles between "director" and "actor" through these
props on the stage, presenting the CERAGEM stories
day by day, month by month and year by year.
4.4 Emotional Interaction of CERAGEM
In the stage of CERAGEM situation, managers of
experiential center, service teachers and elderly
customers respect, love and help each other, contin-
uously presenting moving stories: service teachers
earnestly prepare for every healthy course, customers
introduce their own experience and managers caref-
ully take care of older customers as their child-
ren……which portrays a picture of harmonious
CERAGEM family.
4.5 Low-key Word-of-Mouth of CERAGEM
As far as media selection is concerned, CERAGEM
avoids the so-called strong media such as television,
newspaper, radio and internet, but has chosen a
relatively low-key communication channel——word
of mouth. Word of mouth is typically considered a
face-to-face spoken communication among customers.
In this way, customers often relinquish their unease,
and can easily believe in the product or service. The
free experiential marketing of CERAGEM has
cultivated a lot of loyal customers: some of whom are
their real clients who acquired health in their
experience; some of whom can not afford to buy their
products, but still can experience CERAGEM as
usual. Getting more consumers to know CERAGEM
is their own way to reward the company, of by
sharing their happy experience of love and kindness
with others.
With more and more customers joining CERA
GEM experiential centers, profit is increasing throu-
gh the low-key word mouth. To pursue the social
mission, CERAGEM could invest more money to bu-
ild "Hope Primary School”, to present public activities
and to help vulnerable groups. This is the real win-win
way of “company staff members customers".
ACKNOWLEDGEMENT
This research was supported by China Postdoctoral
Science Foundation funded project (No.
20080440467 )
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