B2B Customer Experience Management in Multinational Organizations in Emerging African Markets: A Case Study of LG Electronics Inc.

By

Nelson Mandela Mugarura

Executive Summary

This dissertation explores how multinational corporations (MNCs), particularly LG Electronics Inc., implement B2B customer experience (CX) strategies to gain a competitive advantage in emerging African markets. As digital transformation reshapes customer expectations, B2B companies are shifting from purely transactional models to more relationship-driven, emotionally aware approaches.

Using a qualitative case study methodology, the research analyzes LG’s presence in Nigeria, Kenya, Egypt, and South Africa. It draws on conceptual models including the Power-Trust-Commitment framework and five key dimensions of CX: sensory, emotional, behavioral, intellectual, and relational. Findings show that LG’s success in Africa stems from culturally sensitive, locally adaptive strategies that emphasize long-term trust, quality perception, and personalized engagement.

This study contributes to the growing literature on B2B CX in developing economies and highlights the importance of empathy, digital integration, and continuous innovation for firms seeking sustainable market positioning on the African continent.

Abstract 

In today’s competitive global marketplace, customer experience has emerged as a key differentiator for businesses, including in the B2B sector. The acceleration of digital transformation and enhanced access to data have enabled companies to better understand and respond to customer needs. This study investigates how multinational corporations, specifically LG Electronics Inc., implement B2B customer experience strategies to gain a competitive edge in emerging African markets.

This research employs a case study approach focusing on LG’s operations in key African nations such as Nigeria, Kenya, South Africa, and Egypt. Drawing on conceptual models of customer experience, including emotional, relational, and functional dimensions, the study reveals that LG Electronics prioritizes relationship marketing and recognizes the emotional component in B2B interactions. The findings suggest that a comprehensive strategy grounded in trust, commitment, and mutual value creation is critical to enhancing B2B customer experience in developing economies.

Acknowledgements

I express my deepest gratitude to LG Electronics Inc. for granting me the opportunity and support to undertake this academic endeavor. I also thank my colleagues for their emotional support during this journey. Special appreciation goes to my former academic institutions: Kyamuhunga Central Primary School, St. Henry’s College Kitovu, Kyambogo University, and Makerere University. I am proud to include the University of East London in this list of academic milestones.

Chapter 1: Introduction

1. Background

As competition intensifies, customer experience (CX) has become a key differentiator, particularly in B2B contexts. Traditionally dominant in B2C settings, CX is increasingly recognized in B2B environments where relationship quality and emotional engagement are becoming crucial factors. The “Experience Economy” framework by Pine and Gilmore (1998) underscores the shift from transactional value to experiential value. Multinational corporations (MNCs) operating in emerging markets must thus adapt their strategies to align with evolving buyer expectations shaped by digitalization and localized needs.

1. Problem Statement 

Despite substantial research in B2C customer experience, B2B contexts remain underexplored, especially within emerging economies. This gap is more pronounced in the African continent, where academic and industry attention to B2B CX practices is limited. As MNCs expand into African markets, understanding and adapting CX strategies to these contexts is crucial to sustained growth.

1. Aim 

To explore how multinational corporations in emerging African markets implement B2B customer experience strategies to gain a competitive advantage.

1.4 Objectives

• Identify key factors shaping the B2B customer experience process.
• Examine dimensions of effective B2B customer experience.
• Develop a conceptual framework for managing B2B CX in emerging African markets.

Chapter 2: Literature Review

2.1 Defining Customer Experience 

Customer experience encompasses the full spectrum of a customer’s interactions with a company, including cognitive, emotional, sensory, behavioral, and relational components (Schmitt, 1999; Meyer & Schwager, 2007). These experiences are subjective and vary across industries and individual contexts (Jain et al., 2017; McColl-Kennedy et al., 2015).

2.2 The Customer Experience Process 

CX unfolds across multiple touchpoints and phases, both direct and indirect (Lemke et al., 2011). Schmitt’s (1999) model outlines cognitive, sensory, emotional, and behavioral stages, highlighting the integrated and dynamic nature of CX.

2.3 Internal and External Influences 

Hwang and Seo (2016) categorize CX influences as internal (e.g., culture, age, education) and external (e.g., political climate, economy, technology). Organizational touchpoints also significantly shape customer perceptions (Nasution et al., 2014).

2.4 B2B CX in Context 

While B2B decisions have traditionally been viewed as rational, research reveals increasing emphasis on emotional and experiential factors (Pandey & Mookerjee, 2018; Kemp et al., 2018). Frameworks such as the “Experience Economy” and Schmitt’s experiential model have been adapted to B2B environments.

2.5 B2B Buying Behaviour 

Webster and Wind (1972) identify environmental, organizational, social, and individual influences on B2B purchasing. Kaufmann et al. (2017) highlight emotional and experiential processing as essential elements, indicating the growing relevance of relational dynamics in B2B CX.

Chapter 3: Methodology

3.1 Purpose 

This qualitative case study seeks to deepen understanding of how MNCs, specifically LG Electronics, manage B2B CX in African markets. The aim is to generate practical insights and contribute to the limited academic discourse on this topic.

3.2 Approach 

Using an interpretivist paradigm (Collis & Hussey, 2014), this research emphasizes the socially constructed nature of customer relationships. Data was gathered through literature analysis, focusing on LG’s strategic operations in Africa.

3.3 Strategy 

Following Yin (2018), a case study design was adopted to explore the complex interplay of CX factors in a real-world multinational context. LG’s extensive presence in Africa provided a suitable case for examining emerging market dynamics.

3.4 Data Analysis 

Thematic analysis was applied to qualitative data from secondary sources. Patterns and frameworks were developed to understand CX dimensions and value drivers in LG’s B2B engagements.

Chapter 4: Findings

4.1 Power-Trust-Commitment Model 

The PTC model (Anderson & Narus, 1990) was identified as a foundation for understanding long-term B2B relationships. Key elements such as trust, commitment, and balanced power influence customer satisfaction and loyalty. LG’s approach incorporates these elements through local adaptation, communication, and transparency.

4.2 Value Dimensions in CX 

Building on Smith and Colgate (2007), LG’s customer experience is assessed across cost, functional, emotional, and symbolic values. The company enhances these through strategic investments in infrastructure, education, product quality, and brand symbolism.

Chapter 5: Analysis

5.1 Variables Impacting CX 

Literature highlights service quality, perceived value, expectations, and organizational commitment as core drivers of CX in B2B (Morgan & Hunt, 1994). LG’s African strategy exemplifies adaptation to local contexts through strong relational marketing.

5.2 Customer Experience Dimensions

• Sensory: LG showrooms provide tactile and visual engagement to foster positive brand perceptions.
• Emotional: User-friendly interfaces and visual aesthetics enhance emotional resonance.
• Behavioral: LG fosters proactive engagement through events and demonstrations.
• Intellectual: Transparency in operations (e.g., factory tours) enhances perceived quality.
• Relational: Strategic partnerships and long-term relationships underpin trust and loyalty.

Chapter 6: Conclusion and Recommendations

6.1 Conclusion 

This study demonstrates that effective B2B customer experience management requires a multidimensional strategy that integrates emotional, relational, and functional elements. In African emerging markets, where trust and adaptation are crucial, companies like LG Electronics gain a competitive advantage by prioritizing local engagement and value co-creation.

6.2 Recommendations

• Future Research: Broaden investigation across multiple MNCs and industries in Africa.
• Model Expansion: Test the Power-Trust-Commitment model in cross-cultural B2B settings.
• Technology Integration: Explore digital touchpoints and automation in B2B CX.
• Cultural Sensitivity: Examine how cultural dynamics influence expectations and relationships in African B2B contexts.
• Longitudinal Studies: Analyze long-term impacts of CX strategies on loyalty and retention.

By developing culturally attuned, trust-based, and experience-driven strategies, MNCs can deepen their footprint in Africa’s dynamic B2B landscape.

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