Store of the future: Towards a (re)invention and (re)imagination of physical store space in an omnichannel context

This paper explores the future of the physical store within omnichannel retail and specifically, the prerequisites of the designed retail environment in optimizing customer experience. Adopting an exploratory qualitative approach, primary data was obtained using semi-structured interviews with 20 industry experts.The research makes a valuable contribution to the dearth of extent literature on experiential store spaces of the future, specifically within the fashion field. By connecting three topics of academic research - Omnichannel retail, the role of the physical store and in-store customer experience - it serves to suggest the prerequisites for designed retail environments in optimizing customer experience.     

When nature calls: The role of customer toilets in retail stores

The scarce previous literature indicates that the customer toilet facilities influence shopping value and should be a concern for retailers. However, customer toilets are often inadequately capitalised in retail stores. This study aims to provide a scientifically robust argument about the critical role of customer toilets in retail stores. The explanatory survey data (n=655) from a Finnish out-of-town department store is examined to explore (1) the importance that consumers place on the customer toilets and (2) the effect of toilet usage on actual shopping behaviour. The results support the assumptions of previous literature by suggesting that customer toilets are considered as an important store attribute and, more importantly, the use of toilets is associated with prolonged in-store time which, in turn, increases spending. The findings offer both academic and managerial contribution and encourage academics and practitioners to regard customer toilets as more than mere an unwanted property expense and discover their full marketing potential.     

An Upbeat Crowd: Fast In-store Music Alleviates Negative Effects of High Social Density on Customers’ Spending

Research suggests that in-store crowding can lower customers’ spending, thus limiting overall benefits of high store frequentation. Here, we propose that this negative effect can be mitigated by adjusting store ambiance, specifically by using certain types of in-store music. To test this idea, we conducted a longitudinal field experiment in which we manipulated in-store music tempo and measured social density in six European retail stores. Analyzing over 40,000 individual shopping baskets, we found that social density had an inverted u-shape effect on customer spending. This effect was moderated by in-store music tempo, such that fast music strongly increased spending under high-density conditions. The increase in shopping basket value was driven by customers buying more items rather than buying items that were more expensive. Fast music thus alleviated negative effects of social density. We discuss the theoretical implications of these findings and describe how practitioners can use in-store music to counter negative effects of high customer density.     

The Impact of a New Retail Brand In-Store Boutique and its Perceived Fit with the Parent Retail Brand on Store Performance and Customer Spending

With data from a specialty apparel retailer, we present two studies that investigate the impact of an in-store boutique displaying merchandise of a new retail brand on overall performance of the parent stores in which the boutiques are placed, and on customer spending on merchandise offered by each of the two brands. Findings from the two studies generally support that the in-store boutique enhances three key store-level metrics: average customer transaction value per store visit; comparable sales growth from one year to the next; and customer conversion ratio. At the customer-level both studies show that average customer transaction value on merchandise offered by the new brand is negatively related to average customer transaction value on the parent brand, and vice versa. Furthermore, both studies reveal that the relationship between the perceived fit between the two brands and average customer transaction value on the parent brand increases at an increasing rate (positive main and quadratic effects of perceived fit), but that the impact of perceived fit on average customer transaction value on the in-store boutique brand increases at a deceasing rate (positive main effect, but a negative quadratic effect of perceived fit). Implications for retail practice and theory are offered.     

Effects of characteristics of in-store retail technology on customer citizenship behavior

This paper investigates the effect of the characteristics of in-store retail technology on customer citizenship behavior (CCB) by adapting the job demands-resources theory, and explores how customer education moderates these relationships. Survey responses from 196 retail shoppers show that perceived complexity and perceived risk lead to customer exhaustion, resulting in decreasing CCB; while perceived advantage and perceived compatibility lead to customer engagement, resulting in increasing CCB. All these paths were found to be moderated by customer education. Managers could use the characteristics of in-store technology to increase CCB in their retail stores.     

The social significance of AI in retail on customer experience and shopping practices

This paper draws on practice-informed, ethnographic research to develop an understanding of the novel social consequences and opportunities afforded from consumers' interactions with AI digital humans as part of the in-store shopping experience. We reveal and interrogate consumers’ experiences with AI digital humans in an exploratory study undertaken during the launch phase of an in-store kiosk digital store greeter in a flagship store of a large national technology and appliance chain. Our findings contribute to understanding the social significance of AI in retail on customer experience (CX) and the managerial implications of consumers interactions with AI digital humans are described and discussed.     

Change in technology-enabled omnichannel customer experiences in-store

This paper explores changes in technology-enabled omnichannel customer experiences in stores over a five-year period (2014–2019). It contributes to the omnichannel-experience-management literature through customer technology-enabled touchpoints within fashion retail. Adopting an exploratory qualitative approach, primary data were obtained using semi-structured interviews with millennial consumers. The findings demonstrate the growing importance of implementing and integrating in-store technologies to improve customer experience. From these, two models are developed: “technology-induced customer experience in-store”; and “technology-enabled customer shopping journey in-store”.     

The effects of in-store themed events on consumer store choice decisions

Retailers are increasingly using in-store events to provide shoppers with unique experiences that will enhance shopping value and help differentiate their stores from competitors. However, relatively little is known about how consumers respond to experiential retail events in terms of their store choice decisions. The purpose of this research was to find out how in-store retail events affect consumers in terms of their store choice decisions. The paper presents findings from a discrete choice experiment that manipulated the presence of different types of in-store themed events in a do-it-yourself (DIY) category. Participants were 312 randomly recruited residents of Melbourne, Australia, who had recently shopped at a hardware store. The experiment was implemented as a mail-back survey. Using logit models the authors assess the effects of the in-store events along with those of various traditional store attributes, including store appearance, price image and distance, on consumer store choice decisions.     

Olfaction and the retail environment: examining the influence of ambient scent

This article concerns the ability of smell to assist the development and communication of retail brand image. It presents a number of propositions regarding ambient smell and the retail environment derived from the literature—including the potential for novel ambient aromas to act as a distinctive element in a retailer’s marketing mix. Empirical testing is achieved through a ‘natural experiment’ in a large electrical store using fragranced and unfragranced conditions. An environmental psychology base was used to develop an in-store questionnaire, supported by direct measurement of customer dwell times and subsequent interviews. In total, 329 questionnaires were returned and 429 customer groups were timed in the two departments where the experiment occurred. Significant differences in consumer perceptions of the store’s environmental attributes were identified, despite the fact that less than 10% of respondents questioned were aware of the use of in-store fragrances. The qualitative interviews provided some initial confirmation for the more complex propositions concerning the memory of scents.     

Relative effects of store traffic and customer traffic flow on shopper spending

This article examines the relative effects of store traffic and customer traffic flow on shopper spending in a single study. An analysis of Croatian hypermarket survey data indicates that store traffic alone does not adequately explain shopper spending. Instead, gross customer traffic flow and realized customer traffic flow are stronger drivers of money spent. The article contributes to the retailing literature by clarifying the respective roles of store traffic and customer traffic flow. Recognizing the greater revenue-generating effect of in-store traffic flow, retailers should better design their store layout and merchandizing strategies to optimize traffic movement and boost store performance.     

Care management to improve retail customers' and employees’ satisfaction

In retailing, ongoing management is needed to avoid compromising customer relationships and organizational performance because of consumers' or employees' dysfunctional behavior. This paper contributes to understanding how care management strategies can improve in-store experiences for customers and employees by adapting the Chronic Care Management (CCM) theory to retailing. Across two studies, one on customers (Study 1) and one on retail employees (Study 2) we show that empowerment reduces dysfunctional behavior, enhancing satisfaction. Furthermore, we demonstrate that customers' and employees’ emotional bond with the retailer (i.e., store attachment) moderates the relationship between dysfunctional behavior and satisfaction, buffering dissatisfaction from dysfunctional behavior.     

The Effects of Background Music on Consumer Responses in a High-end Supermarket

Abstract

This study examines the effects of in-store background music valence (liking) and music fit with the overall store image on consumer evaluative and behavioural responses in the context of a high-end supermarket chain. Based on the previous body of work, a conceptual model is developed to examine music valence on customer appraisal of store offering and personnel, and on the length of shopping time and the value of purchase. The influence of the perceived music fit with the overall store image on shopping time is also assessed in the model. The hypothesized relationships are examined via covariance analysis using store-intercept consumer data. Implications of the structural analyses results for management of retail store brands and for future research on music as an element of store atmospherics are discussed.     

An Assessment of When,Where and Under What Conditions In-Store Sampling is Most Effective

In-store product sampling is a commonly used promotional technique designed to give prospective consumers an opportunity to experience a product prior to purchase. While prior research has documented a positive relationship between short-term sales and perceptual measures of the customer shopping experience, little is known about the long-term impact of sampling or factors that moderate its success. In this paper, we develop an empirical approach that allows us to study the short-term and long-term effects of in-store sampling on both own and competitive products. We apply our approach to six store-level scanner data sets across four different product categories and show that in-store sampling has both an immediate (short-term) and sustained (long-term) impact on sales. We also show that the impact of sampling on sales is moderated by the characteristics of the store conducting the event, and that repeated sampling for a single product leads to a multiplicative increase in its long-term sales performance. We find that, unlike many types of in-store promotion, sampling results in a category expansion effect as opposed to a pure substitution effect. We contrast the immediate and long-term sales patterns for in-store sampling to those of product displays and discuss managerially relevant differences. Finally, we demonstrate incremental profit implications and store selection scenarios for different incremental costs of conducting the in-store events using constrained optimizations.     

Assessment of business potential at retail sites: empirical findings from a US supermarket chain

We address the problem of estimating retail business potential at alternative sites, with concern for assessing performance relative to potential in existing markets and for identifying the best sites for expansion into new markets. At question is the utility of information typically used in formal retail patronage models, in comparison with additional information considered important by retail executives. Relevant data are gathered from secondary sources and intensive in-store surveys are conducted to produce a portfolio of information about neighbourhood demographics, store ambience, variety and quality of products and services, relative prices of selected products, etc. for stores in a retail grocery chain and competitive stores in the chain's markets. We experiment with alternative statistical models for store performance to determine the consequence of restricting the types of data available when constructing the models. Our findings suggest that while information about store location and surrounding areas, store characteristics and competitive position are all required to obtain the best assessment for business potential at a site, a few key variables on each dimension offer the bulk of explanatory power. Further, the spatial-locational variables affect all measures of store performance in intuitive directions, whereas the effects of other variables differ according to performance measure and reflect the store's market position.     

Female consumers: Decision-making in brand-driven retail

This article is a theory-building exploratory study conducted to investigate how female shoppers make meaning in a branded-retail store shopping experience. This study extends research on retail consumers' decision-making and the retail shopping experience using hermeneutic phenomenology. The authors conducted in-depth interviews with respondents, who were self-identified customers of a leading intimate apparel retailer. The results suggest that consumers' retail shopping decision-making incorporates a complex set of interactive components that are brand-driven and simultaneously affect and are affected by the interaction of in-store shopping and retail setting. The findings show a rich understanding of the consumer decision-making process is achievable by including the actual in-store experience, consumers' prior contextual experiences and expectations regarding retail visits.     

Customer satisfaction and retail sales performance: an empirical investigation

We measure the links between store attribute perceptions and customer satisfaction, and between customer satisfaction and sales performance. Our data set consists of six waves of customer satisfaction and sales data for about 250 retail outlets over the period 1998-2001 for a publicly held supermarket company. We construct a statistical model to address nonlinearities and asymmetries in the satisfaction-sales performance links, and we illustrate how retailers can affect store revenues by managing customer satisfaction. Contributions of our study include the analysis of behavioral consequences of customer satisfaction in the food retail sector, the accommodation of complexities in the satisfaction-sales performance links based on an empirical model of first differences, and a discussion of how managers can employ the results for customer satisfaction policies.     

Managing a Global Retail Brand in Different Markets: Meta-Analyses of Customer Responses to Service Encounters

This study investigates how retailers can leverage their brand to shape customers’ satisfaction with service encounters. It develops and tests hypotheses about how brand, store, and consumer factors moderate customer responses to experience clues during retail service encounters. Six meta-regression analyses synthesize and compare results from 842 satisfaction equations describing customers’ encounters with a global retailer operating 400 stores in 32 countries. The results show how customers weigh their perceptions of service encounters differently depending on brand, store, and consumer factors. In markets where customers believe the retailer has high holistic brand quality, they place less weight on experience clues within the store. In markets where customers believe the retailer’s service brand promise, they place more weight on in-store experience clues. In markets where the retailer promises utilitarian value, customers weigh functional experience clues more heavily. In markets with an online purchasing channel, the effect of experience clues common to offline and online store environments is magnified, and unique clues are diminished. In addition, customers heavily weigh experience clues that fit their goals. In general, retail success factors include high brand quality (which makes customers more forgiving), a service brand promise that is mirrored in the store image (which makes customers attend to the experience clues aligned with them), and the careful monitoring and managing of retail touchpoints (to customize experience clues to each market). In this way, retailers can use customer-based strategies to effectively design and manage their global retail brand in different markets.     

Assessing the usefulness of store card data in direct sales of financial services

The UK financial services market has expanded in recent years through the addition of several non-traditional players. We evaluate the extent to which this increased supply of services is best channelled through existing retail locations or whether products are better promoted and managed via direct marketing methods. Using a UK grocer/retailer's lifestyle customer database for an urban store and an out-of-centre location, we analyse a regional sample of customers who have received financial services mail-shots. The use of GIS and logistic regression enables the determination of the extent to which mail respondents have distinctive characteristics in terms of wealth, financial service ownership and proximity to store. Finally, we discuss the implications of our empirical study for in-store financial services support and draw some general conclusions based on our assessment of the usefulness of lifestyles data in such applications.     

Store and store format loyalty measures based on budget allocation

In highly competitive environments, such as retail markets, characterized by a growing heterogeneity of demand and the proliferation of new retail formats, cross-shopping behavior between stores and formats is becoming increasingly common. This process makes customer loyalty a key strategic challenge for retailers that want to consolidate their position within the market. To contribute to the analysis and comprehension of this reality, the authors propose and assess different objective indicators of store loyalty, store format loyalty, and intra-format store loyalty based on budget allocation. Specifically, they analyze the role of retail format in observable loyalty patterns in a market. Through an empirical analysis of grocery purchase patterns of a sample of 580 Spanish households, the authors find that diverse objective loyalty indicators based on budget allocations provide very similar information from a practical point of view. They also find that consumers' regular use of various formats (specifically, supermarkets, hypermarkets, and discount stores) for their purchases explain observed disloyalty better than does purchasing in several stores within these formats. The observed patterns reveal that retail formats define differentiated store profiles that relate to the benefits sought in different purchase situations.     

基于消费者认知的零售店铺印象形成过程拆解

基于消费者认知的零售店铺印象形成是解释消费者购买决策行为的重要内容,消费者对零售店铺印象的形成源于其对店铺重要属性的感知和三个认知参照标准:消费者以往的购物经历、零售店铺业态、店铺选址环境,这三个方面从不同的视角影响着消费者对零售店铺重要属性的判断和整体店铺印象的形成。本文在理顺以往学者研究结论的基础上,拆解并理顺了消费者零售店铺印象的形成过程。