Retail Atmospherics

Understanding Retail Atmospherics

• Definition:
  • Retail atmospherics refers to the design of the physical environment in a store to influence customer emotions, behaviors, and satisfaction.
  • It encompasses elements such as lighting, sound, scent, layout, and crowding.
• The Pleasure-Arousal-Dominance (PAD) Model:
  • Developed by Mehrabian and Russell (1974), this model explains how physical environments impact emotional responses.
  • Three dimensions:
    • Pleasure: The extent of happiness or satisfaction experienced by a customer.
    • Arousal: The degree of stimulation or excitement elicited by the environment.
    • Dominance: The feeling of being in control within the environment.
  • In retail settings, pleasure and arousal are the most influential factors in driving “approach behaviors” such as entering the store, browsing, and purchasing.

Key Research on Retail Atmospherics

• Donovan and Rossiter (1982):
  • Applied the PAD model to retail environments.
  • Found that dominance had minimal impact in retail contexts.
  • Interaction of pleasure and arousal significantly influenced approach or avoidance behaviors:
    • Positive emotions (pleasure and arousal) encourage longer stays and higher spending.
    • Negative emotions (dissatisfaction or boredom) lead to avoidance and reduced spending.
• Example of Approach Behaviors:
  • Customers are more likely to interact with staff, explore more products, and develop loyalty when experiencing positive emotions induced by the retail environment.

Effects of Odor in Retail Spaces

• Background Scents:
  • Scent is increasingly recognized as a key component of retail atmospherics.
  • Can range from simple air fresheners to advanced aroma technologies designed to evoke specific customer reactions.
  • Example: Synthetic baking and coffee aromas are often used in bakeries and cafes to attract customers.
• Chebat and Michon (2003):
  • Investigated the role of ambient odors in a Canadian shopping mall using the PAD model.
  • Findings:
    • Pleasant odors enhanced arousal levels but did not directly increase feelings of pleasure.
    • The scent improved perceptions of the environment and product quality.
    • Concluded that odors could influence customer perception without altering mood.

Crowding and Its Impacts

• Types of Crowding:
  • Spatial Crowding: Relates to the number of physical objects within a space.
  • Human Crowding: Relates to the number of people within a space.
• Effects on Satisfaction:
  • Crowding can significantly lower customer satisfaction, especially when space demands are not met.
  • Spatial crowding is often more detrimental than human crowding.
• Machleit et al. (2000):
  • Conducted three studies (two field and one laboratory) to explore how perceived crowding affects shopping experiences.
  • Findings:
    • Both spatial and human crowding reduced satisfaction, with spatial crowding having a stronger effect.
    • Emotions like pleasure and arousal mediated the relationship between crowding and satisfaction.

Practical Implications for Retailers

• Optimizing Atmosphere:
  • Retailers should design store environments to maximize pleasure and arousal while minimizing crowding effects.
  • Elements like pleasant odors, efficient layouts, and ambient lighting can enhance customer experiences.
• Targeting Emotional Responses:
  • Positive emotional responses can drive approach behaviors, increasing sales and customer loyalty.
  • Avoidance behaviors linked to negative experiences can be mitigated through thoughtful design and management.