Consumer Behavior

Special Topic:

Store Layout, Design, and

Atmospherics

Meeting Store Design Objectives

• Design store and product mix to fit target market.

• Design for Convenience and/or Image and/or to increase sales/profitability

• Atmosphere: “Any surrounding or pervasive element or influence”

• Non-Product Related Stuff (Atmospherics)

• vs. Product Related Stuff (Merchandising)

Source: Funk & Wagnalls Standard College Dictionary, 1974

Effect of Atmospherics on Mood

• Enjoyable shopping environments can induce positive moods in shoppers (1)

(1) Smith and Sherman 1993

Effect of Mood on Shopping Behavior

• Positive Correlation between Mood and:

• Satisfaction with Retailer (2)

• Rating of Overall Store Image (3)

• Number of Items Purchased (3)

• Time Spent Shopping (3)

• Amount of Money Spent (3)

(2) Babin and Darden 1996 (3) Sherman and Smith 1987

SocialFactors

AmbientFactors

DesignFactors

MerchandiseQuality

ServiceQuality

StoreImage

Baker et al. 1994NOTE: All paths indicate positive relationships

Antecedents of Store Image *

*

Retail Atmospherics: Outline

• Social Factors

– Retail Density / Employee Availability

• Ambient Factors

– Music / Lighting / Scent

• Design Factors

– Color / Signage / Layout

Atmospherics - Social Factors

• Retail Density

– Eroglu and Machleit 1990

• Web download time analogy

• Employee Availability

– Baker et al. 1994

Atmospherics - Design Factors

• Color (Warm vs. Cold)

– Bellizzi et al. 1983

• Signage (Present/Bold vs. Absent)

– Various Sources

• Layout (Grid vs. Free-Flowing)

– Various Sources

Grid Store Layout

Fruit

Vegetables

Office & customer service

Books, magazines, seasonal display

Rec

eivi

ng

& s

tora

ge

Exit

Entrance

Cart area

Checkouts

Grid Layout

• Who uses it?

• Used in grocery and drugstores.

• What’s good about it?

• Cost efficient.

• Easy to navigate / remember

Racetrack Layout

• Who uses it?

• What’s good about it?

• Draws customers around the store.

• A.K.A.--loop.

• Time spent in store……

• Show BEST Product “racetrack” design:

Free-Flowing Layout

Free-Form Design• Fixtures and aisles arranged asymmetrically

• Used in small specialty stores and departments within large stores.

• Pleasant ambiance doesn’t come cheap.

Free-Form Layout

Storage, Receiving, Marketing

Underwear Dressing Rooms

Checkout counter

Clearance Items

Feature Feature

Jean

s

Cas

ual

Wea

r

Sto

ckin

gs

Acc

esso

ries

Pan

ts

Top

sT

ops

Ski

rts

and

Dre

sses

Hat

s a

nd H

andb

ags

Open Display Window Open Display Window

I.C.B. @ Bloomingdale’s

• Fixtures with latest garments are placed along the perimeter to draw customers into area.

• Flooring and lighting delineate department.

– See picture on next slide...

Store Layout for Cost, for Image, or for Convenience ?

• Wal-Mart?

• CVS?

• JC Penney?

• Building 19?

• Staples?

Behavioral Design Issues

• Show Paco Underhill Clip

– Decompression Zone

– Butt-Brush Factor

– etc.

Atmospherics - Ambient Factors

• Music (Waiting in Line)

– Hui, Dube and Chebat 1997

• + Perceived wait duration

• + Emotional Eval. of Service Environment

• + Approach Behavior

• Music (Loudness)

– Smith and Curnow 1966

Atmospherics - Ambient Factors

• Music (Liked vs. Disliked)

– Gorn 1982

• Music (Fast Tempo: Supermarket)

– Milliman 1982

• Music (Slow Tempo: Restaurant)

– Milliman 1986

Atmospherics - Ambient Factors

• Lighting (Harsh vs. Soft)

– Various Sources

• Scent (Present vs. Absent)

– Hirsch and Gay 1991

• Scent (Odor #1 vs. Odor #2)

– Hirsch 1995 (Casino Study)

– Show Casino Layout

Area 2Odorant: B

Las Vegas Casino Study (1995)

Area 1Odorant: A

Area 3Odorant: None

- Large Casino- Similar Slot Machines- Scents/Areas Rotated at Random- Measured Gross Receipts

Area 2Odorant: B

Las Vegas Casino Study (1995)

Area 1Odorant: A

Area 3Odorant: None

- Large Casino- Similar Slot Machines- Scents/Areas Rotated at Random- Measured Gross Receipts

Odorant A: 40% Higher Gross Receipts

Alan Hirsch, M.D(The Scent Guy…)

Casino Study Questions

• Do you see any relation between this and a normal retail environment?

• Is pumping in a scent like Odorant A any different than pumping bakery smells across a grocery store?

• Of you were a store owner, would you use Odorant A if you could?

• Is there a potential downside to it?