Journal of Fashion Marketing and Management

Retail store environment and customer experience: a paradigm

Ishita Sachdeva, Suhsma Goel,
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JFMM
19,3
Retail store environment and
customer experience: a paradigm
Ishita Sachdeva and Suhsma Goel
290 Department of Resource Management and Design Application,
Lady Irwin College, Delhi University, Delhi, India

Abstract
Purpose – The current context of retail is extremely challenging. Retail environments are pushing
consumers to appreciate hedonic aspects of consumption. Retailers are finding new ways to offer
customers something unique or special in order to encourage traffic to physical stores. People like to
touch, feel, smell, taste, inspect, test and try on. It is a holistic approach that involves both emotional
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and rational triggers (Meyer, 2006, p. 1). The paper aims to discuss these issues.
Design/methodology/approach – The basic proposition is that a shopper’s behavior is influenced
by the environment. The environment (store) influences a shopper’s emotions and mood, which in turn
influence the shopper’s behavior (Ebster and Garaus, 2011, p. 108). Mehrabian found a significant
amount of research to back Holbrook’s findings that “emotion is a key link in the shopping experience”
determining that consumers’ reactions within stores are based on their emotional states, which are
stimulated by store designs (Mehrabian, 1977).
Findings – It is important to focus on engaging the customer both emotionally and behaviorally,
which means that the communication on social media and physical retail stores should both excel in
emotional appeal, and encourage various forms of interaction with the brand. Increasingly, success
at retail is less about what the retailer has to sell and more about how they sell it. This is the new
experiential paradigm shift in shopping. This will become even more critical in the future as success at
retail will continue to shift toward how well retailers play to the emotions, psychology and feelings of
the shopper (Danziger, 2006, p. 17). The need whether utilitarian or hedonic carries them to the store
but emotions make them stay and shop.
Originality/value – Both utilitarian and hedonic experiences – whether they are derived from
consuming products or total experience, including products, people, places and the environment –
contribute in differing degrees, to the overall experience of consumption.
Keywords Customer behaviour, Hedonic consumption, Customer experience, Retail store design,
Shopper’s behaviour, Physical stores
Paper type Literature review

Journal of Fashion Marketing and
Management
Vol. 19 No. 3, 2015
pp. 290-298
© Emerald Group Publishing Limited
1361-2026
DOI 10.1108/JFMM-03-2015-0021
1. Introduction
“People will forget what you said, people will forget what you did, but people will never
forget how you made them feel,” Maya Angelou (2013). What people remember about
shopping experience is determined by the mood, feelings and intensity of emotions
created in particular moments while shopping.
Many retailers are incorporating the customer experience as a component of their
customer offerings. Faced with increased competition from web retailing, merchants are
elevating the in-store experience into something more exciting, entertaining and educational
to lure shoppers through the door. The store no longer exists just to move merchandise and
ring up transactions. Increasingly, it also serves as showroom, museum, and warehouse and
fulfillment center. Stores are routinely practicing one-upmanship in inducing more store
visits by making shopping fun and entertaining (Poulsson and Kale, 2004, p. 268).
Creating an experience for consumers is more important than ever (Rauen, 2006).
Getting people in the store is not enough. What consumers want is a memorable event
that engages them.
 Pine and Gilmore argue that businesses must orchestrate memorable events Retail store
for their customers, and that memory itself becomes the product – the “experience.” environment
More advanced experience businesses can begin charging for the value of the
“transformation” that an experience offers. In 1971, Toffler talked about the upcoming
“experiential industry,” in which people in the “future,” would be willing to allocate
high percentages of their salaries to live amazing experiences. From bustling
downtowns to suburban malls, the brick-and-mortar store is poised for reinvention. 291
What consumers want are products, communications and marketing campaigns that
dazzle their senses, touch their hearts, and stimulate their minds. Consumers no longer
buy commodities; “they express who they are and identify the relationships that
are important to them through consumption” (Kim et al., 2007, p. 8).
According to Hirschman and Elizabeth (1984), consumption may be viewed as a
process that provides an individual with cognitive and sensory experiences. Cognitive
consumption seeks tangible benefits from performing utilitarian functions. It involves
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satisfying basic physiological needs and assures the security of satisfactory purchase
performance. Utilitarian experience involves offering of attributes such as convenience,
value, customer service, confidentiality by retailers to the customers. These attributes
will positively enhance the consumers’ experience. Consumers can therefore purchase
what they want, the way they want it, at the right time and preferably at a competitive
price (Kim et al., 2007, p. 69).
Kaltcheva and Weitz (2006) feel that factors such as type of the store, its location,
economic climate, convenience, time of the year can impact the shopping experience.
Some retailers (e.g. Starbucks, Apple, Barnes and Noble) attempt to create engaging
environments in their stores that encourage shopping. In contrast, other retail chains
(e.g. Home Depot) are successful with their minimalist warehouse-style shopping
environments (Levy and Weitz, 2004). Local markets, weekly bazaars, flea market,
farmers market solve the purpose of buying day to day needs. Utilitarian
consumption is related to necessity rather than recreation. However, the current
research studies indicate the factors impacting shopping experiences in local market
also, which might involve a hedonic experience as well. Like, a farmers market too,
involves the sensory experience – a sight of colorful fruits and vegetables and spices,
aroma of freshly ground spices or baked items and cheese, social interaction, a feeling
of community.
Sensory consumption is associated with the intangible benefits pertaining to
emotional and hedonic aspects of experiences (Hirschman and Holbrook, 1982).
They identify hedonic consumption as involving product experiences that stimulate
consumers’ feelings and imaginings. Malls and shopping centers provide the customers
with utilitarian needs as well as hedonic experiences.
No amount of advertising, marketing promotion, in-store advertising or window
display can impact the customers, the need often drives them to the stores to shop,
set them on a mission and moves them to action but there is not a (one) thing that
marketers or retailers can do about building a need. On the other hand they can create
desire, which is purely an emotional response (Danziger, 2006, p. 21). Therefore, it is the
need whether utilitarian or hedonic, that carries them to the store but the emotions
make them stay in the store and shop.

2. Paradigm of customer experience

Holbrook and Hirschman (1982) are believed to be the first ones to introduce the
experiential perspective of consumer behavior and marketing. Traditional consumer
 JFMM research has tended to neglect such experiential aspects of behavior, resulting in
19,3 limited understanding of the importance of hedonic benefits.
Increasingly, success at retail is less about what the retailer has to sell and more
about how they sell it. This is the new experiential paradigm shift in shopping.
This will become even more critical in the future as success at retail will continue to
shift toward how well retailers play to the emotions, psychology and feelings of the
292 shopper (Danziger, 2006, p. 17).
Currently, a variety of terms are being used when discussing experiences in retail
environments. Carù and Cova (2003) for instance used the term consumer experiences,
market consumption experiences or shopping experiences in retail environments,
Healy et al. (2007) reflect on “retail experiences.” Broadly speaking, “experience” is an
interaction between a company (brand/product/service) and a customer, being shaped
by the characteristics of the customer and those of the product, company or brand,
and always influenced by the context or environment in which the interaction takes
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place (Same and Larimo, 2012).

Walls et al. (2011a, b) define consumer experience as multidimensional takeaway
impression or outcome, based on the consumer’s willingness and capacity to be affected
and influenced by physical and/or human interaction dimensions.
Similarly, for Schmitt (2010), customer experience can be defined as perceptions,
feelings and thoughts that customers have when they encounter products and brands
in the marketplace and engage in consumption activities as well as the memory of such
experiences.
Due to the experiential shift, making a retail concept work today is far less about the
tangibles or objective aspects of the business – product, location, price and all about
intangibles that color and flavor the shoppers experience in the store.
Pine and Gilmore (1999) acknowledged the emergence of what they call
experience economy. They pointed out the nature and progression of economic
value goes from commodities to goods, to services and finally to experiences
(see Figure 1). Retailers should shift up from selling goods to services, and from
selling services to experiences, which is what people value more today (Pine, 2010).

Commodities ----------------------- fungible, natural

Goods ------------------------------- tangible, standardized

Services -------------------------- intangible, customized

Experiences ------------------------ memorable, personal

Figure 1.
Hedonic consumer
experience
Source: Kim et al. (2007)
 Like for instance, Build-a-Bear workshop provides an interactive store environment Retail store
by encouraging participation and creativity by selecting personalized components environment
to create bears like – stitching, sounds, names, clothing, etc. This consumer involvement
transforms the consumption of a generic teddy bear into a differentiated premium
experience. The premium experience yields profit for the retailer.

293
3. Discussion
In order to be successful a retailer must offer an enhanced, truly memorable and
distinctive shopping experience to its customers (Danziger, 2006, p. 17). The goal of
experiential store design is to use a variety of emotional and cognitive stimuli to create a
unique shopping experience for each customer. People like to touch, feel, smell, taste,
inspect, test and try on. It is a holistic approach that involves both emotional and rational
triggers (Meyer, 2006, p. 1). Research has demonstrated that shopping environments
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invoke emotional responses in consumers (Machleit and Eroglu, 2000) and that these
emotions, in turn, influence customer shopping behavior (Donovan and Rossiter, 1982;
Darden and Babin 1994; Sherman et al., 1997).
Similarly, according to the researchers (Mossberg, 2007; Pine and Gilmore, 1998,
1999; Walls et al., 2011a, b) experiences trigger a multitude of emotional, physical,
cognitive and spiritual reactions. Shopping is not always a rational experience.
Customers make impulse decisions, which are influenced by stimuli like lighting,
product positioning, imagery, sound and smell (Morrell, 2012). Shoppers do not love a
store simply because they love the merchandise they carry. They love a store because
it touches them personally and emotionally. What is really important to understand
about shopping today is that shoppers focus on the total shopping experience
(Danziger, 2006, p. 15). The shopping experience is process oriented. It includes much
more than simply getting what you want. It focusses on all the activities and events
that were part of it: the design of the shopping environment in the store or online,
the service personnel, how they greeted you, whether you bought something extra
and how you felt while you were shopping (Schmitt, 2003, p. 14). Studies suggest
that store location, atmosphere, emotional attributes, sensory stimulation and visual
presentation are contributing factors to customers’ behavioral responses (Ahn, 2008;
Andreu et al., 2006; Gobé, 2001; Lam, 2001; Park and Farr, 2007; Healey, 2008;
Song, 2009).
Despite the growing recognition of the importance of customer experiences in
retail practice, academic literature on this topic often lacks conceptualization of the
phenomenon as such.
Research on customer experiences in retail environments from a holistic perspective
seems to be truly scarce (Jüttner et al., 2009; Petermans and Van Cleempoel, 2010b;
Petermans, 2012; Verhoef et al., 2009).
Convention research has neglected an important portion of consumer experience.
The behavior of people in general and of consumers is fascinating and endlessly
complex result of a multifaceted interaction between organism and environment.
By focussing single mindedly on the consumer as information processor, recent
consumer research has tended to neglect the equally important experiential aspect of
consumption, thereby limiting our understanding of consumer behavior. Future
research needs work toward redressing the imbalance by broadening the area of study
to include some consideration of consumer fantasies, feelings and fun (Hirschman and
Holbrook, 1982).
 JFMM 4. Conclusion
19,3 Measuring emotion in hedonic experiences is extremely important due to the emotional
components of experiential consumption (Havlena and Holbrook, 1986). A challenge
that seems to be emerging from the literature is how can organizations systematically
engineer their customer experiences (Carbone and Haeckel, 1994) in order to achieve
the “triple bottom line”, i.e. to make them not only better for the customer but also
294 better for the organization’s staff and better for its bottom line, i.e. economical and
more efficient (Bate and Robert, 2007; H.M. Government, 2007). Retailers can generate
positive returns by creating an exciting and stimulating shopping environment
(Kaltcheva and Weitz, 2006).
Retailers are known to design store environments in a manner that will enhance
customer positive feelings, assuming this would lead to desired consumer behavior
such as higher willingness to purchase or longer stays (Mano, 1999). The longer a
consumer spends in a retail environment, the more he is likely to spend (Donovan
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et al., 1994; Wakefield and Baker, 1998). Work by Donovan and Rossiter (1982)
found that enjoyment of a retail experience results in more time being spent shopping
and return patronage. A customer is satisfied and will return with a purchase in
case his expectations are met and will eventually like the place and vice-a-versa
(Baker et al., 1992). Pullman and Gross (2004) state that customer experiences
can encourage store and retailer loyalty, not only through a functional design,
but also by creating emotional connection through an engaging, compelling and
consistent context.
Psychologists, Mehrabian and Russell (1974) developed a simple model that
explains how individuals react to a specific environment. The basic proposition is
that a shopper’s behavior is influenced by the environment. The store
environment influences a shopper’s emotions and mood, which in turn influence
the shopper’s behavior (Ebster and Garaus, 2011, p. 108). Mehrabian found a
significant amount of research to back Holbrook’s findings that emotion is a key
link in the shopping experience determining that consumers’ reactions within
stores are based on their emotional states, which are stimulated by store designs
(Mehrabian, 1977). A customers’ satisfaction with and preference for a retail store
is based upon their emotional state (Dawson et al., 1990). What drives consumers
toward hedonic products and services is a search for a hedonic response, i.e.,
a combined response from the emotions, senses, imagination and intellect
(Carù and Cova, 2007, p. 109).
According to (Bitner, 1992) an individual affects and is affected by physical
surroundings, depending upon the mood he is in while entering the store, i.e. happy,
sad, anxious, excited.
Recently, psychologists have studied environment-behavior relationships, resulting
in the swiftly growing psychological discipline known as “environmental psychology”
(Donovan and Rossiter 1982). This discipline attempts to predict the collective effect of
stimuli in a particular environment upon different peoples’ feelings and behavior
(Mehrabian 1976). Thus, the main concerns in environmental psychology may be
summarized as “ (1) the direct impact of physical stimuli on human emotions and
(2) the effect of the physical stimuli on a variety of behaviors, such as work
performance or social interaction” (Mehrabian and Russell, 1974, p. 4).
Mehrabian and Russel (1974) proposed that environmental stimuli and
approach-avoidance behavior is linked through three states of emotion: pleasure (P),
arousal (A) and dominance (D), which they referred to as PAD. They proposed that
 the sensory variables, in the environment, the rate of information (i.e. the Retail store
amount of information in the environment) and individual differences in affective environment
response influences people’s affective responses to the environment, which in turn
induce people to approach or avoid the environment. Several researchers have studied
the effect of pleasure and arousal in relation to store environment (Donovan and
Rossiter, 1982; Marcoolyn and Nesdale, 1994; Baker et al., 1992; Sherman et al., 1997; Tai
and Fung, 1997; Wirtz et al., 2000; Mattila and Wirtz, 2001). 295
Donovan and Rossiter (1982) found a positive relationship between pleasure
and arousal; while Baker et al. (1992) found an increase among the two with the
intention to remain in the store and spend money. Perceptions of pleasantness and
arousal are important in consumer evaluations of physical and non-physical
store elements. Donovan et al. (1994) confirmed that when consumers experience
pleasantness in a store environment, the experience can have a significant
positive influence on their purchasing behavior. They concluded that by adding
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upbeat music, using bright colors and implementing other elements that create
arousal, retailers can create a store that is perceived by shoppers as more pleasant
(Figure 2).
The manner in which these emotional states of PAD are combined determines
whether a consumer approaches or avoids an environment such as retail
store (Ward et al., 2003). Retailers can draw targeted customers into their stores by
triggering approach behavior while simultaneously creating an environment
that leads to avoidance behavior by those consumers who were not identified as
the intended target. Like, environmental stimuli (e.g. store lighting) can influence
a consumer’s emotional state (e.g. pleasure, arousal), which in turn drives the
consumer’s approach or avoidance behavior (e.g. willingness to buy) (Puccinelli
et al., 2009).

THE ENVIRONMENT
Sense modality
variables
(e.g. color
and temprature)
Information rate BEHAVIOURAL
(Characterizing the RESPONSES
PRIMARY
spatial and temporal
EMOTIONAL Approach -avoidance
relationships RESPONSES
among the stimulus (which includes
Pleasure
components of an physical approach,
environment) Arousal exploration,
affiliation, per -formance,
Dominance or other verbal and non -
verbal communica -
tions of
preference)
Characteristic
emotions asso -
ciated with
PERSONALITY Figure 2.
Mehrabian and
Russell approach-
avoidance model
Source: Mehrabian and Russell (1974, p. 8)
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Corresponding author
Ishita Sachdeva can be contacted at: ishi.sachdeva@gmail.com

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