Bargain effectiveness in differentiated store environments: The role of store affect,processing fluency,and store familiarity

Two main types of value have been established in the retail literature: merchandise value based on the quality and price of a store's offerings and differentiation value based on the extent of atmospheric cues in the environment. However, it is not clear what happens when a store offers both types of value to a high degree. We investigate how offering a bargain (or price cut) affects consumer responses for high and low differentiation store environments. In two studies, using a simulated store environment in a behavioural laboratory, we find that the presence of bargains in a highly differentiated store environment negatively influences store affect and, in turn, approach behaviour. This effect, however, only holds true for low familiarity stores and can be explained by processing fluency theory. Consequently, retailers focusing on store environment differentiation should reconsider their use of bargains.     

The effect of involvement on visual attention and product choice

Our study examined the effect of consumers' level of involvement on visual attention to product, information sign and price sign guided by the Elaboration Likelihood Model (ELM). We also investigated the relationship between visual attention captured by eye fixation on information and price sign and product choice for garden plants. Using a Tobii X1 light eye tracking device, we obtained data from 101 respondents in Texas and Michigan. We found that participants who had high (vs. low) product involvement paid more attention to the product and its information as demonstrated through higher fixation count (FC), longer total fixation duration (TFD), and total visit duration (TVD). We also found highly involved participants processed price information as a central rather than a peripheral cue. In addition, total visit duration (TVD) on an information sign was found as the strongest predictor of product choice.     

Experiencing atmospherics: The moderating effect of mall experiences on the impact of individual store atmospherics on spending behavior and mall loyalty

Retailers invest in atmospherics to create effective environments that engage shoppers in their shopping journey and promote business success. However, the link between store-level atmospherics and mall-level experiences remains opaque. In a quasi-experimental field study, we confirm that the quality of in-store atmospherics positively impacts in-store spending and reveal for the first time that it also positively influences loyalty intentions toward the mall as a whole. Both effects are mediated by perceived store atmosphere and moderated by mall experiences. The effects on spending are stronger for shoppers who are seeking hedonic experiences (seductive, recreational, and social) and are less interested in the functional experience. However, the impact on mall loyalty is stronger for shoppers pursuing material (functional) and avoiding social experiences. For retailers and mall owners, these findings underscore the importance of matching store atmospherics with mall experiences. Similarities and differences in the effects of atmospherics between and within the store and mall levels are discussed.