Cultural innovation through store atmosphere and product design: a case of the craft industry

Cultural innovation implies revenue potential and has gained much academic and practical attention. In this study we explore the case of Yingge craft industry, a well-known cultural innovative industry in Taiwan, by focusing on the relationship among constructed atmosphere, product design, customer experiential value and satisfaction. The results from a stratified sample show that store atmosphere, product affective design, and functional design are positively correlated with customer's aesthetic, social, and functional value, which in turn affects satisfaction. Managers in the industry are advised to construct good store atmosphere and quality product design to enhance customer experiential value and satisfaction.