An exploration of consumers’ experiences in physical stores: comparing consumers’ and retailers’ perspectives in past and present time

Abstract

In this paper, we explore consumers’ in-store experiences and their components, from both a consumer and retailer perspective. This is a replication of a study we performed in 2006 and thus we also examine how the role of the physical store has changed over the last decade. We use the Critical Incident Technique (CIT) to improve our understanding of consumers’ in-store experiences. Moreover, we conduct in-depth interviews with Swedish retailers to achieve an understanding of how retailers use aspects of the store environment to enhance the consumer experience. Interestingly, our results suggest that consumers’ in-store experiences to a large extent are created by the same aspects today as ten years ago (e.g. personnel, layout, atmosphere). Furthermore, while retailers today emphasize the importance of fulfilling new and more advanced consumer demands, they often still accentuate the weight and use of traditional values (e.g. personnel and layout) ahead of advanced technology.     

Motives and barriers affecting consumers’ co-creation in the physical store

ABSTRACT

The rise of e-commerce has caused a dramatic shift in consumer behaviour, putting pressure on physical stores to offer a more personalised and service-oriented offering. This paper investigates one strategy retailers might apply in this context: in-store consumer co-creation. Research has predominantly focused on online-based consumer co-creation in new product and service development. We argue that with increased focus on digitalisation and consumer experiences in physical retail, this type of co-creation will increasingly take place in-store. Following a pre-study with practitioners, our main study uses 20 scenario-based semi-structured interviews, where we identify eight consumer motives and seven barriers that underlie consumers’ willingness and reluctance to create and select new products in-store, respectively. Some motives, such as ethical, self-efficacy, and concerted are reported as barriers when reverted, due to consumers’ concerns regarding data privacy, low levels of perceived self-efficacy and assumptions that the technology might be flawed. Other motives largely overlap existing research on motives for co-creation whereas other barriers predominantly pertain to the underlying technology and the physical setting of co-creation in-store. The findings further indicate that consumers co-create differently online versus in-store. In-store seems particularly suitable for more marketing related aspects of co-creation, with a stronger emphasis on playfulness and purchase intentions. Practical implications for retailers are therefore discussed.     

In-store location-based marketing with beacons: from inflated expectations to smart use in retailing

ABSTRACT

The announcement of beacon technology in 2013 created a wave of excitement among pioneering retailers and marketing leaders, allowing them to send location-based messages to customers in-store. However, until present, the technology has not yet established a strong foothold in retailing. The present paper adopts a multi-method approach with the objective to 1) detail its main challenges in the market and 2) enlighten scholars and practitioners on smart use cases for in-store location-based marketing. The findings of the multiple data sources (i.e. review of academic and practitioner literature, in-depth interviews with retail technology experts and focus groups with consumers) allowed the authors to infer valid conclusions, along with recommendations for future research and actionable managerial advice.     

Money,mavens, time,and price search: Modelling the joint creation of utilitarian and hedonic value in grocery shopping

Abstract

This research deductively develops a model of both in-store price search and store deal proneness drawing on hedonic and utilitarian value creation. Based on a sample of 535 US grocery shoppers, the model reveals that in-store price search and store deal proneness share many of the same drivers, amongst these, the value of time being the most important. The opportunity cost of time engaged in price search is explained in terms of shoppers’ financial pressures and role construction as price mavens. Price mavenism influences store deal proneness directly due to its capacity to yield the price information required to build and maintain a role identity, and indirectly through its effect on the opportunity cost of time engaged in price search. The primary implication of the research is that the relationship between time, search, and price mavenism may be best explored by viewing price knowledge, the basis for identity maintenance, as a flow rather than a stock.     

Humorous Illustration and Cartooning — A Guide for Editors,Advertisers, and Artists. Nelson,Roy Paul. Englewood Cliffs,NJ: Prentice-Hall,Inc., 1984. 243 Pp. $12.96

Abstract

Previous research on negative political advertising has found both intended and backlash effects, indicating that the impact of these ads is likely to be contingent on other factors. The current study examines some potentially important contingent variables — level of involvement and attention to both newspapers and television for political information. Regression analyses indicate that both enduring and situational involvement and attention to television news increase the impact of negative political ads on voting decisions. Although it initially appears that attention to newspaper is unrelated to the impact of negative ads, analysis of covariance shows that newspaper reading actually reduces the impact of negative ads after controlling for other variables.     

Consumer-computer interaction and in-store smart technology (IST) in the retail industry: the role of motivation,opportunity, and ability

ABSTRACT

Recent advances in technology have led to the emergence of smart technology systems in brick-and-mortar stores. This study aims to explore the factors that influence customer adoption of in-store smart technology in a retail setting. By adopting the motivation, opportunity, and ability framework, the present study examines the role of relative advantage, perceived complexity, flow experience, enjoyment, retailer support, perceived attractiveness, technology readiness, and self-efficacy in customer perception of shopping effectiveness, which in turn, impacts their adoption intentions. By adopting a quantitative approach, a survey questionnaire was used to collect 747 responses from Australia and Indian retail shoppers. The results show that the motivation, opportunity, and ability framework provided a very insightful way for understanding customer adoption of IST. Specifically, we find significant differences in the role of flow, retailer support, and perceived attractiveness in determining customer evaluation of in-store smart technology for Australia and India. Findings have important managerial implications.     

How U.S. consumers view in-store promotions

Most sales promotion analysis, either at the external-to-the-store or in-store level, has been conducted based on what marketers have done and how consumers have responded in specific retail situations and for specific promotional techniques. Most studies, therefore are reported as, point-in-time and point-of-place specific, historical, after-the-fact results and imply a consumer preference for the measured activity. This paper provides a holistic view of how U.S. consumers regard all forms of promotion, both external-to-the-store in the form of 31 media alternatives and 23 in-store techniques across thirteen broad product categories. Data comes from twice a year online studies of representative groups of U.S. consumers, conducted since 2002. Consumers report on which in-store activities most influence their purchase decisions. From that, predictive models of consumer response to alternative promotional combinations are developed using CHAID analysis. This predictive approach is superior to traditional after-the-fact measures.     

Determinants of Search for Nondurable Goods: An Empirical Assessment of the Economics of Information Theory

This paper examines the usefulness of Stigler's (1961) Economics of Information Theory in the study of consumer search in a market for frequently purchased, nondurable grocery items. The empirical model examines antecedent (pre-store) and point of purchase (in-store) search. It incorporates and contrasts economic incentives for search with noneconomic involvement-based motivations and perceived versus actual costs associated with search. Data used in the analysis were collected in a large midwestern city during 1990. Results indicate that Stigler's cost-benefit model provides a better fit for pre-store rather than in-store search activities. Pre-store search activities were found to be driven by time, monetary, and mobility constraints. Pre-store search activity was not found to be significant in explaining in-store search activities. In-store search activities were significantly explained by only household size. Shopping involvement was not found to be related to pre- or in-store activities. A comparison of objective and subjective measures of search costs rendered comparable results.     

Will Consumers Purchase Stevia as a Sugar Substitute?: An Exploratory Study on Consumer Acceptance

Stevia rebaudiana Bertoni, commonly known as Stevia, is an ancient sweet herb native to Paraguay. The plant, especially the leaves, has a sweetening effect 300 times sweeter than saccharose. Malaysia has taken a particular interest in promotion of Stevia derivatives as a precautionary measure to combat chronic diseases. This study aims to investigate factors that influence the acceptance of Stevia-based products by consumers. Face-to-face interviews were conducted using a structured questionnaire with 900 consumers from Klang Valley areas. The results revealed that most of the respondents were willing to use Stevia-based products as a substitute for sugar. There was also a significant relationship between level of education and consumer’s willingness to change for Stevia-based products. Health benefits, promotion, availability, and price were found to be the most influential factors toward acceptance of Stevia-based products by consumers. An effective promotion is necessary to increase consumer’s awareness toward a more healthy diet.     

In-Store Shopping Behavior

SUMMARY

The analysis of consumer shopping behavior is one of the most critical aspects which has to be taken into consideration in a context of retailing internationalization, where managers need to define the degree to which international firms can standardize or adapt their strategies in foreign markets. The aim of this research is to analyze and point out the main cross-cultural differences regarding in-store behavior comparing three countries: Italy, France and Poland. The study presents the results of an empirical research carried out on the household goods retail sector, which shows on a global level a positive growth trend that is predicted to continue in the next years especially through the internationalization of the retailing chains.     

Consumer showrooming: Value co-destruction

PurposeThis research employs value co-destruction as a theoretical lens to investigate the antecedents of consumer showrooming behavior. Drawing on relevant literature, a research model specifying showrooming dynamics from the consumer's perspective is conceptualized and empirically tested.MethodologyUtilizing survey data from 275 consumers, structural equation modelling is employed to assess a research model including thirteen hypotheses.FindingsThe study findings reveal that showrooming behavior is complex and comprises differing degrees of accumulative value co-destruction and value co-creation behavior across online and offline channels. Specifically, consumer characteristics, channel characteristics and product characteristics are shown to be associated with in-store value taking and online value co-destruction and co-creation.Originality and valueScholarly insights into the antecedents of consumer showrooming are rare. In responding to calls for research, this paper represents the first empirical investigation of consumer showrooming behavior utilizing the lens of value co-destruction. The study adds to academic understanding of the showrooming phenomena and demonstrates that co-destructive and co-creative behaviors can occur in a simultaneous, concurrent and iterative fashion. Focusing on practice, the findings reveal opportunities for experience-led shopping environments.     

Visual influence on in-store buying decisions: an eye-track experiment on the visual influence of packaging design

This article describes the impact of visual attention on consumers' in-store buying behaviour. Through an eye-track experiment, it demonstrates the advantage of a behaviour model that addresses visual attention and an increase in visual stimuli during the process. It reveals that consumers exhibit a muddled search strategy where packaging design influences the decision process in several phases. Five phases were found in an in-store decision process, and the post-purchase phase seems to be essential for even low-level in-store decision processes. Further knowledge on packaging design elements is needed for a broader understanding of visual influence during in-store purchase decisions.     

An omnichannel approach to retailing: demystifying and identifying the factors influencing an omnichannel experience

ABSTRACT

The purpose of this research is to identify the factors that influence an omnichannel experience. Omnichannel is an emerging approach to retailing that responds to the changing nature of how customers shop in alternation between online and offline shops, and the increasing use of digital devices (e.g. smartphones and tablets), as a consequence retailers are focusing and establishing a seamless integrated approach to their services. Omnichannel is now a hot topic in retailing but there is a lack of empirical studies into the factors that influence an omnichannel experience. Using a mixed methods approach, we propose and empirically test a conceptual model that identifies four factors influencing an omnichannel experience: brand familiarity; customisation; perceived value, and technology readiness. We conceptualise omnichannel to include three key channels; in-store, online and mobile. Two hundred and forty-six questionnaires were collected and analysed using PLS-SEM and 11 interviews were carried out with marketing/ omnichannel professionals. Our results indicate that brand familiarity has a strong influence on omnichannel (in-store, online and mobile) while perceived value has a negative impact on the mobile experience. Our results show that retailers need to consider multiple factors, such as brand familiarity, customisation, perceived value and technology readiness as influencing factors of an omnichannel experience, and plan the use of multiple touchpoints simultaneously to enhance their overall customer’s experience. Although this study demonstrates the significant factors influencing an omnichannel experience, questions remain regarding the exact use of each touchpoint by customers and the extent of overlap between the touchpoints. which .     

Off-the-Shelf Cultural Symbols

Abstract

One hundred and ninety-one British, 71 Greek and 91 people of differing nationalities were exposed to three print advertisements for a cold and influenza remedy and three advertisements for the services of an accommodation agency. The first advertisement for each product was taken directly from a newspaper; the second and third respectively added to this advertisement pictures of (a) a relevant, and (b) an irrelevant mythological character. Respondents' cognitive, affective and conative reactions to the six advertisements were then assessed.     

Creating and consuming experiences in retail store environments: Comparing retailer and consumer perspectives

This article investigates the substance of arguments about an experience-oriented economy and experience-seeking consumption in retailing. Employing a case study research approach (n=7) and the Critical Incident Technique (n=252), we show how retailers as well as consumers relate to in-store experiences. The results point out that retailers’ use ever more advanced techniques in order to create compelling in-store experiences to their consumers. In contrast, the depiction given by consumers reveals that their in-store experiences to a large extent are constituted by traditional values such as the behavior of the personnel, a satisfactory selection of products and a layout that facilitates the store visit.     

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.     

Examining store atmosphere appraisals using parallel approaches from the aesthetics literature

ABSTRACT

Drawing on the aesthetics literature, this study examines how typicality, novelty, unity and variety help to explain consumers’ aesthetic pleasure and approach/avoidance behaviours. Comparisons are made between consumers’ perceptions of actual store designs in a recently remodelled fashion store and that of an older, established store prototype owned by the same retailer. The research findings establish how novelty, typicality and variety confer aesthetic pleasure and approach behaviours in-store atmosphere appraisals contexts where there is a limited introduction of novelty, with one established prototype. The findings also suggest that moderation effects explain that consumers who place a greater value on the importance of design evaluate the novelty and aesthetic pleasure association differently compared to consumers with less design value orientation.     

Foreign Product Purchase Behavior in Transition Economies: An Empirical Analysis of Product Information Sources Among Georgian Consumers

SUMMARY

This article analyzes the product information sources that consumers in transition economies, specifically in Georgia, utilize when they consider purchasing foreign products. We surveyed 313 consumers in Georgia regarding 9 sources of product information (experiential knowledge, word of mouth, in-store promotions, television, packaging information, radio, newspapers and magazines, salespeople, and billboards). The findings indicated that personal experience and word of mouth are the 2 most frequently used and highly valued sources of information while salespeople and radio are the 2 least frequently used and least influential sources of information. Education, age, and ethnocentrism exhibited significant impact on the experience source.     

Consumer Attitudes toward and use of Advertising Content in a Small Daily Newspaper

Results of the study indicate that the advertising content of the newspaper in the present study is viewed as local news by its subscribers and consequently has the highest readership of any type of content in this paper. While it was assumed that the advertising content of this newspaper would be well-read, the magnitude of readership and reader-interest in advertising was surprising.

In regard to questions concerning the reader's attitude toward the amount of advertising carried by the newspaper under study, it was found that rather than feeling there was too much advertising in the paper, the majority felt that it was either “just right” or that they wanted more advertising in the future.

This article is based in part on a paper presented for the Advertising Division at the Association for Education in Journalism convention in Ottawa, Canada, August 16–20, 1975.