The Effects of Store Environment and Merchandise to Customer Responses: an Empirical Study

Richard I. Haryono; Sabrina O. Sihombing

doi:10.15294/jdm.v9i1.14650

The Effects of Store Environment and Merchandise to Customer Responses: an Empirical Study

Richard I. Haryono⁽¹⁾, Sabrina O. Sihombing⁽²⁾,

DOI: https://doi.org/10.15294/jdm.v9i1.14650

(1) Pelita Harapan University
(2) Pelita Harapan University

Abstract

This study aims to determine the relationship between store environments consisting of social cues, design cues, ambient gestures, and merchandise cues and their impact on cognitive and affective consumer evaluations of stores and merchandise that will influence approach behavior. The retail industry in Indonesia has increased inevitably. This development is predicted to continue to increase to 8% by 2018. As a result, stores are competing to offer new and unique experiences for both cognitive and affective customers. Over the past decade, similar research has rarely been done. In addition, item cues variables are also rarely mentioned in previous studies. Therefore, this study aims to explain more about merchandise cues. The basis of this research is quantitative method, using descriptive research type with research object Foodmart Primo Maxxbox Lippo Village. The sample size involved 200 respondents selected by applying purposive sampling. After data collected, the data were analyzed by using structural equation modeling (SEM). There are three out of 12 hypotheses that were not supported in this study. The three hypotheses are the relationship between ambient cues with consumersâ€™ cognitive evaluation of the store, and no relationship between consumer cognitive evaluation and approach behavior. Theoretical and managerial implications and suggestions for further research are also discussed in this study.This study aims to determine the relationship between store environments consisting of social cues, design cues, ambient gestures, and merchandise cues and their impact on cognitive and affective consumer evaluations of stores and merchandise that will influence approach behavior. The retail industry in Indonesia has increased inevitably. This development is predicted to continue to increase to 8% by 2018. As a result, stores are competing to offer new and unique experiences for both cognitive and affective customers. Over the past decade, similar research has rarely been done. In addition, item cues variables are also rarely mentioned in previous studies. Therefore, this study aims to explain more about merchandise cues. The basis of this research is quantitative method, using descriptive research type with research object Foodmart Primo Maxxbox Lippo Village. The sample size involved 200 respondents selected by applying purposive sampling. After data collected, the data were analyzed by using structural equation modeling (SEM). There are three out of 12 hypotheses that were not supported in this study. The three hypotheses are the relationship between ambient cues with consumersâ€™ cognitive evaluation of the store, and no relationship between consumer cognitive evaluation and approach behavior. Theoretical and managerial implications and suggestions for further research are also discussed in this study.

Keywords

Store Environment; Customer Responses; Approach Behaviour.

Full Text:

PDF

References

Badan Pusat Statistik. 2015. Statistik Jumlah Toko di Indonesia. Available at: https://www.bps.go.id/publikasi.html. February 9, 2016.

Baker, J., Grewal, D & Parasuraman, A. 1994. The Influence of Store Environment on Quality Inferences and Store Image. Journal of the Academy of Marketing Science. 22 (4): 328-339.

Chebat, J. C & Michon, R. 2003. Impact of Ambient Odors on Mall Shoppersâ€™ Emotions, Cognition, and Spending: a Test of Competitive Causal Theories. Journal of Business Research. 56 (7): 529- 539.

Chen, H. S & Hsieh, T. 2011. The Effect of Atmosphere on Customer Perceptions and Customer Behavior Responses in Chain Store Supermarkets. African Journal of Business Management. 5(24): 10054-10066.

Donovan, R. J & Rossiter, J. R. 1982. Store Atmosphere: an Environmental Psychology Approach. Journal of Retailing. 58: 34-47.

Darlon, E. B. 2007. Adolescent Behavior Research Advance. New York: Nova Science Publishers, Inc.

Floor, K. 2007. Branding a Store: How to Build Successful Retail Brands in a Changing Marketplace. Philadelphia: BIS Publishers.

Hair, J. F. Jr., Black, W. C., Babin, B. J & Anderson, R. E. 2010. Multivariate Data, 7th edition. New Jersey: Pearson Education, Inc.

Halim, L. H. P & Barata, D. D. 2016. Pengaruh Store Environment terhadap Customer Evaluation Serta Dampaknya pada Customer Response di Toko Ritel. Jurnal Widyakala. 3: 29-43.

Hooley, G. J., Piercy, N. F & Nicoulaud, B. 2012. Marketing Strategy and Competitive Positioning. 5th edition. Harlow: Prentice Hall.

Hussain, R & Ali, M. 2015. Effect of Store Atmosphere on Consumer Purchase Intention. International Journal of Marketing Studies. 7 (2): 34-43.

Kaltcheva,V. D & Weitz, B. A. 2006. When Should a Retailer Create an Exciting Store Environment? Journal of Marketing. 70:107-118.

Kumar, A & Kim, Y. K. 2014. The Store as-a Brand Strategy: the Effect of Store Environment on Customer Responses. Journal of Retailing and Consumer Services. 21(2014): 685-695.

Lam, S. Y. 2001. The Effects of Store Environment on Shopping Behaviors: a Critical Review. Advances in Consumer Research. 28 (1): 190-197.

Levy, M & Weitz, B. A. 2012. Retailing Management. New York: McGraw-Hill Irwin.

Lin, M. Q & Chiang, Y. F. 2010. The Influence of Store Environment on Perceived Experiential Value and Behavior Intention. Asia Pacific Management Review. 15 (2): 281-299.

Lunardo, R & Roux, D. 2015. In-Store Arousal and Consumersâ€™ Inferences of Manipulative Intent in the Store Environment. European Journal of Marketing. 49(5/6): 646-667.

Turner, A. 2015. Generation Z: Technology and Social Interest. Journal of Individual Psychology. 71(2): 103-113.

Namkung, Y & Jang, S. S. 2008. Are Highly Satisï¬ed Restaurant Customers Really Different? a quality perception perspective. International Journal of Contemporer Hospitality Management. 20: 142-155.

Newman, A. J & Darshika, P. 2004. The Marketing Directions of Two Fashion Retailers. European Journal of Marketing. 38(7): 770-789.

Olahut, M. R., El-Murad, J & Plaias, I. 2012. Store Atmosphere: Conceptual Issues and Its Impact on Shopping Behavior. International Conference Marketing-from information to decision. 5(2012): 317-343.

Palacios, L. L., LÃ³pez, R. P & Redondo, Y. P. 2016. Cognitive, Affective and Behavioural Responses in Mall Experience: a Qualitative Approach. International Journal of Retail & Distribution Management. 44 (1): 4-21.

Parsad, C., Prashar, S & Sahay, V. 2017. Impact of Impulsive Personality Traits and Store Environment on Impullse Buying Behavior. 23 (1): 1-24.

Purwa, E. M. R. G & Yasa, N. N. K. 2014. Strategi Store Environment dan Time Pressure pada Pembelian Impulsif melalui Emotional State. Jurnal Dinamika Manajemen. 5(2): 147-160.

Pitchayapa, S & Kim, S. 2016. Influences of Store Atmosphere on Purchase Intention toward a Fast Fashion Brand in Bangkok. Journal Retailling. 3.

Rubin, A & Babbie, E. R. 2012. Essential Research Methods for Social Work, 2nd edition. United States of America: Cengage Learning.

Saad, M & Metawie, M. 2015. Store Environment, Personality Factors and Impulse Buying Behavior in Egypt: The Mediating roles of Shop Enjoyment and Impulse Buying Tendencies. Journal of Business and Management Science. 3(2): 69-77.

Sachdeva, I & Goel, S. 2015. Retail Store Environment and Customer Experience: a Paradigm. Journal of Fashion Marketing and Management: an International Journal. (19)3: 290-298.

Santoso. 2011. Structural Equation Modelling (SEM) Konsep dan Aplikasi dengan AMOS 18. Jakarta: PT. Elex Media Komputindo Kompas Gramedia.

Sarwono, J. 2012. Mengenal PLS-SEM. Yogyakarta: Andi Offset.

Singh, P., Katiyar, N & Verma, G. 2014. Retail Shoppability: The Impact of Store Atmospherics & Store Layout on Consumer Buying Patterns. International Journal of Scientific & Technology Research. 3(8) : 15-23.

Yoo, C., Park, J & MacInnis, D. J. 1998. Effects of Store Characteristics and In-Store Emotional Experienceson Store Attitude. Journal Business Research. 42: 253-263.

Zentes, J. 2016. Strategic Retail Management Text and International Cases. Wiesbaden: Gabler.