| Summary: | The development of technology has contributed to a fast-growing market for e- commerce. Through e-commerce, the physical interaction has decreased, and new interaction tools have been implemented to gain competitive advantage. Packaging is one way to communicate with customers and often the first physical contact with brands when purchasing online. Packaging can create value and enhance the customer experience. The purpose of this research, from a business perspective, is to investigate how designed packaging from an online neo-luxury brand affects customers within Generation Y (1980-1994) when the product is received. The study aim to provide an understanding of how the customer experience can be affected through designed packaging. This study applied a qualitative research method with a deductive approach in order to answer the research questions and the purpose. Semi-structured interviews were conducted with Swedish citizens within Generation Y that have purchased products from neo-luxury brands. The result of the study shows several aspects of how packaging can contribute to better customer experience. When customers’ expectations on packaging are surpassed, the customer experience is affected positively. Packaging containing tissue paper and gifts enhance the unboxing experience. Packaging is a way for companies to create value and affect customers’ attitudes towards brands. Satisfaction is affected by expectations and packaging can contribute to a better overall experience.
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