Impact of Store Atmospherics on Impulse Buying Behavior Regarding Shopping Goods in Pakistan

Table of Contents

1 Introduction
1.1 Background
1.2 Statement of the Problem
1.3 Research Questions and Objectives of the Study
1.3.1 Research Questions
1.3.2 Research Objectives
1.4 Scope and Significance of Study
1.5 Expected Outcome and Policy Implications
1.6 Structure of Thesis

2 Literature Review
2.1 Impulse Buying
2.2 Store Atmospherics
2.2.1 External Elements of Store Atmosphere
2.2.2 Internal Elements of Store Atmosphere
2.2.3 Store Atmospherics and Impulse Buying
2.3 Retail Industry in Pakistan
2.4 Future Prospects
2.5 Theoretical Framework of Study
2.5.1 Research Model:
2.5.2 Hypotheses of the Study

3 Subjects and Methods
3.1 Research Philosophy
3.1.1 Positivism
3.1.2 Interpretivism
3.2 Research Approach
3.3 Nature of Research
3.3.1 Exploratory Research
3.3.2 Descriptive Research
3.3.3 Explanatory - Causal research
3.4 Research Methodology
3.4.1 Purpose of Survey
3.4.2 Sampling Frame
3.4.3 Sample Unit
3.4.4 Sample Size
3.4.5 Sampling Technique
3.4.6 Questionnaire
3.5 Data Analyses Technique

4 Empirical Results and Findings
4.1 4.1 Descriptive Statistics
4.2 4.2 Pie Chart
4.3 Reliability
4.3.1 Reliability of Independent Variables:
4.3.2 Reliability of Dependent Variable:
4.4 Validity of the Study
4.4.1 Internal Validity:
4.4.2 External Validity:
4.5 Scattered Plots:
4.6 Correlation
4.7 Regression
4.7.1 Normality:
4.7.2 Homoscedasticity and Linearity
4.7.3 Regression Analysis
4.8 ANOVA

5 Conclusion and Recommendations

5.1 Conclusion of Study

5.2 Recommendations

6 References

Appendix I

SURVEY QUESTIONNIRE

1 Introduction

1.1 Background

Markets of all the businesses are characterized by red ocean competition, therefore companies and retailers are trying to position themselves through innovation and differentiation at any cost. They want to differentiate themselves from their competitors to be successful in the market and want to get maximum market share by using store atmospherics and its components. This study is aimed at explore the impact of store atmospherics on consumer impulse buying in Pakistan.

Combination of different features of a product including: material, functional, operational and psychological features related to a specific product is called Brand Building Brand Building. To build long term demand and to develop a successful retail brand, retail stores must add some perceived and actual value to the store which will ultimately result in increased sales (Demers, 2013). Consumers are only willing to pay more prices for a brand if they are getting satisfied by actual and perceived values provided by a specific brand for a particular product or service being offered (Morrison M. , 2002)

Differentiation of the stores based upon the old components of the marketing mix like: product, price, place and promotion, has become difficult for retailers (Smith, 2012). Light, color, and in store displays are the different element of a retail store which have been considered as having direct effects on the psychological state of the consumers and provokes to make impulse purchases (Golson, 2013). Retailers need to constantly add value to their brands as stores have to be much more than just passive places that display the products for sale (Grewal etal, 2006). Stores need to excite the shoppers by affecting their aesthetic sense as emphasis has now been moved towards elements which have the propensity to create a unique atmosphere, capture the brand image and help to and an exciting shopping experience. These elements can be; music, lighting, flat screen videos, graphics, aromas and flooring. Immediate difference and a wonderful shopping experience can be created by the use of visual aesthetics and selected in-store music (Morrison, 2002).

Due to changing consumer insight, it is becoming difficult to creating the wow factor, in the retail environment, to capture the attention of the shoppers. Retailers are looking ahead beyond the traditional retail store elements towards aesthetic and atmospheric elements such as color, lighting and in store displays to influence the decision making process of the buyers. Use of in store music influence the shopping behavior of shoppers and can increase the chances that music can lead the buyer to make a purchase (Bruner, 1990).

Shopping experience has been divided in to three elements. These are classified as: store atmospherics, merchandise and customer support (Lium, 2001). Store atmosphere which is commonly known as store atmospherics, complement the other two elements and plays a critical role in enhancing shopping experience of the buyer (Meaghan, 2011). Store atmosphere helps to create customer’s perception and emotions that will induce customers for making the purchase and it is created by visual communications, colors, music, lights etc (Pappas, 2008). The environment which suits the target market and affects their purchasing behavior by affecting their aesthetic sense is called store environment, also known as store atmosphere. Today, instead of purchasing from Weekly Haats, Itwar Bazar, Melas and Mundis, people prefer buying from air-conditioned stores. They want to make their buying experience comfortable and pleasurable and want clean and organized environment, hi-speed escalators, scented environment, arresting displays, light and music (Spiesa, Hesseb, & Loescha, 1997).

Stores are acting as hotspots of entrainment for a major chunk of population, specially the youth. In order to make shopping easy and to give a comfortable feeling to consumers during shopping, store environment needs to be designed. It is very much important to have an atmosphere which makes the shopping pleasant and to create a store image and favorable mindset of the consumer towards store position. In this way consumers can forget the bitterness of heavy prices paid for expensive products in the stores. Stimulating storefronts and interiors can create a sense of distinctiveness to appeal the mind of the consumers. It creates a warm welcoming feeling helps satisfying customers and ultimately converts a single purchase into long term relationship. In this way store environment can be used to make customer satisfied thus develop customer loyalty and it can also help in enhancing the brand value of the various products.

Different elements of the store atmospherics can be used to attract customers. A good in store environment which needs to be touched and felt before choosing the products is required to facilitate the browsing process for products, and a poor atmospherics on the other hand negatively affects the position of the product. Store atmospherics can also be built a store’s image and it can also be used as promotion tool. An attractive store environment is just like ‘an icing with cherries on the cake’. If store atmosphere is striking it can enhance the selling process by capturing the attention of the customer and enabling him to take purchase decision spontaneously. Shoppers mostly desire an easy store environment, so that they can enjoy the comfortable shopping experience. People also utilize stores for spending waiting or leisure time or meeting with friends. Store atmosphere creates the difference between a memorable shopping experience and a forgetful transaction (Mohanty & Sikaria, 2001).

1.2 Statement of the Problem

To coup with increase in market competition, retailers and marketers needs to ensure that their stores are striking and eye catching to their target markets. Creating a differential advantage on the only on the basis of products being offered has become difficult. Stores play a vital role for market differentiation. Visual characteristics of a store plays a significant role for consumers while selecting a specific store for making purchase decision and consequently affects their buying intentions; visual presentation of the store has remained an interesting phenomenon for retailers, in terms of buying habits of the consumers. This fact has been studied in the marketing literature and consumer behavior studies (Kraftt & Mantralla, 2006)

Increase in dual income families and longer working hours and are making shopping a more hectic activity because people have less time available and on the other hand there is lack of response by retailers in the traditional retail environment (Avlott & Mitchell, 1999). Recent impulse buying behavior has emerged as a very powerful phenomenon in consumer buying decision making process (Bayley & Nancarrow, 1998). Impulse buying got a lot of attention from consumer behavior researchers and theorists and has been emerged as influential and unique phenomenon (Youn & Faber, 2000).

Components of store environment are considered as important determinants of buying behavior. A variety of methodological and theoretical approaches have provided about the components of store atmosphere which can affect consumer’s purchase intensions and these approaches are considered difficult for practitioners to adopt (Newman & Foxell, 2003).

During last few decades retailing research has focused on issues like pricing, distribution systems, customer services, marketing strategies, sales techniques and buying behaviors. Buying behavior is not only limited to choices related to product attributes; it is rathero affected by consumer perceptions, the influence of social environment, substitute products available in the market, different marketing strategies, shopping environment and various other internal and external factors that persuade consumer choices of a product. Retailers need to be aware of the ways of using and use store atmosphere and its components in their favor, to get success in the market (Shujaat, 2012).

Pleasant and striking shopping environment increases the chances of Impulse buying (A. Ali, ASF Hansu, 2013). Products displayed on store shelves attract the potential buyers and Young people have greater tendency of attraction towards product displays and Impulse buying in higher income group. (Saif & Rehman, 2013). Visual merchandising has positive impact on consumer buying behavior (Bhatti & Latif, 2013).

When we narrow down our shopping environment among Pakistani customers, several different factors are identified as highly influential on the Impulse buying behavior. Furthermore, the introductions of the new retail formats have opened doors to newer avenues both in terms of the art of selling and impacting consumer choices from perspective of the retailers. Increased competition among retail players has also increased the possibility and variety of the ways in which the stores can inspire and motivate consumers. Changing consumer practices indicated the importance of recognizing and understanding the variables for decision making especially as the consumers are also becoming more informed and alert. Accordingly, the current research is intended to identify the factors that influence consumers impulsively derived by interior of the store.

1.3 Research Questions and Objectives of the Study

1.3.1 Research Questions

In the introduction part of the study, it is clearly stated that store atmospherics are the factors which influence consumer’s impulse bying tendecy. This research is based on S-R model of psychology in which store atmosphere acts as stimulus for consumers which develops consumer’s attitude towards purchase behavior. Moreover the study shall examine Impact of store atmospherics on consumer’s impulse buying tendency. The study will answer the following research questions:

Q1: What is the impact of store layout on impulse buying behavior?

Q2: What is the impact of in-store point of purchase (product displays, promotion signage) on impulse buying behavior?

Q3: What is the impact of ambient factors of store atmosphere on impulse buying behavior?

Q4: What is the impact of human factors of store atmosphere on impulse buying behavior?

1.3.2 Research Objectives

1. To measure the impact of store layout on impulse buying behavior.

2. To measure the impact of in-store point of purchase (product displays, promotion signage) on impulse buying behavior?

3. To measure the impact of ambient factors of store atmosphere on impulse buying behavior.

4. To measure the impact of human factors of store atmosphere on impulse buying behavior.

1.4 Scope and Significance of Study

This study will provide an insight about why store atmospherics can be considered a significant part of the strategic marketing plan for increase in sales and to create a positive store image and how it can affect consumer impulse buying behavior. The study will also help retailers about different components of atmospheric components of a store which can persuade the consumers to buy on impulse and the ways in which stores can be designed and the products needs to be displayed in the store and the ways in which it can be used to influence impulse buying by affecting buyer’s decision making process.

1.5 Expected Outcome and Policy Implications

The study will provide a comprehensive guideline to the producers of different national and international companies and retailers in Pakistan to develop their marketing strategies for more sales and market share.

1.6 Structure of Thesis

The thesis is structured in such a manner that it has three main parts. The chapter 1 and 2 laid the theoretical foundation of the research being undertaken in the later part of the study. The chapters 3 and 4 depict the empirical methodology of undertaken study followed by results of analysis. Whereas the chapter 5 discusses all results in detail in order to answer the four research questions. This sums up the three main parts of the thesis.

Chapter 1 discusses the background, statement of problem, research questions, objectives, scope and significance of study .

Chapter 2 lays foundation for the theoretical framework of study by discussing in detail the research work of renowned researcher in this particular field of study. It is further explained that the research is based on Stimulus-Response(S--R) model, where store atmospherics are expressed as stimulus which leads consumers to impulse buying.

Chapter 3 sheds light onto methodology of the study. This in detail explains the nature of research, target population, sampling technique, data collection methodology and data analysis tools and techniques.

Chapter 4 describes in detail the findings of the data analysis. All results are presented in the form of descriptive tables, graphs and other statistical techniques.

Chapter 5 discusses the interpretation of these results in context to their practical implications and limitations and the recommendation to retailers and marketers

Chapter 6 reveals the references used as source in the entire study.

2 Literature Review

After reviewing the literature it is demonstrated that store atmospherics have positive relation with shopping behavior of the consumer. Store atmospherics consists of two part external variables and internal variables of store atmosphere which effect customers’ emotional, cognitive and behavioral responses.

2.1 Impulse Buying

Producers and retailers invest a lot of money in advertisement to create brand awareness, brand recall and brand trial which influence consumer buying choices. Consumer exhibit two main types of buying behavior: There are classified as is planned buying in which consumer has already planned to buy specific product or service to fulfill their needs. Second is unplanned or unintentional buying called impulse buying. Many factors i.e. social values, status image, internal state, mood, packaging of products, availability of products, sales men communication, store atmospherics and a range of internal and external factors which influence the impulse buying behavior of the consumers (Prasad, 2009). Promotional mix may affect planned buying whereas it has no affect on unplanned buying. The problem is that producers and marketers invest only on promotion of product and ignore all those factors which affect the unplanned buying i.e Impulse Buying.

Impulse buying is an abrupt and instantaneous purchase with no pre shopping intentions either to buy the specific product category or to accomplish a specific buying task (Beatty & Ferrell, 1998). Impulse buying is influenced by internal psychological state and external environmental factors, such purchases occurs after experiencing an urge to buy, impulse buyers usually do not set out with the definite purpose of visiting some specific store for purchasing certain item (Beatty & Ferrell, 1998) . It is valuable for retailers to understand different factors, which trigger consumer’s impulsive buying, within the retail setting. Through focused products, attractive store design and layout, along with other atmospherics, such as product displays, in store communications, and signage, retailers can facilitate the customers to find the required products within shortest time (Baker, Grewal & Levy, 1992).

2.2 Store Atmospherics

Different environmental cues, that can be planned and controlled to allow potential consumers to exhibit specific behaviors and to have a wonderful shopping experience, are known as store atmospherics (Turley & Milliman, 2000). The term; store atmospherics is used to describe different elements such as design, layout, color, light, sound, scents etc within a store to influence the buying behavior of the customers. Atmospherics of a store can help in creating positive feelings of excitement, curiosity, ease and comfort among the shoppers. Change in atmospheric of a store can change the customer’s perception and feeling for that particular store. Atmospherics can be used to create environments and influence behaviors of shoppers by affecting their psychology and state of mind (Hoffman & Turley, 2002). Researchers have found that shoppers show one of the two types of behaviors in response to environment. These behaviors are categorized as approach or avoidance (Turley & Milliman, 2000). A consumer’s approach or avoidance behavior can cause four different sets of outcomes: (1) consumer can stay in the store or can leave the place, (2) once the consumer has decided to stay in the store, he will explore the store or will leave the store without exploring it (3) a will either communicate with people in the store or ignore them (4) after spending the time at store he will make the purchase decision this can be approach(to buy) or avoidance (not to buy), after making the purchase there comes post purchase decision in the form of satisfaction or dissatisfaction. (Hoffman & Turley, 2002). Retailers basically need to understand buyer’s environmental psychology and recognize how to create a space where shoppers will show approach behaviors throughout their entire shopping experience.

Environmental factors in a store are divided in to three components and these components these components are classified as Ambient Factors, Design factors and Social Factors Baker (1987).

Ambient Factors: Background conditions that exist under the level of our immediate awareness (Air Quality , Humidity, Temperature, Noise(Level/Pitch), Scent, Cleanliness, Circulations/Ventilations, Lighting and Music)

Design Factors: Stimuli that exist at the forefront of our awareness (Aesthetic, Architecture Color Style, Materials Décor, Functional, Layout, Scale Shape, Texture, Pattern, Comfort, Signature and Texture)

Social Factors: People present in the Environment Service Personnel (Number, Appearance

Behaviur) Audience (Number, Appearance Behaviour).

Stores need to excite the shoppers by affecting their aesthetic sense as emphasis has now been moved towards elements which have the propensity to help create a unique atmosphere to and capture the brand image and to make the shopping experience more exciting. These elements can be; music, lighting, flat screen videos, graphics, aromas and flooring. Immediate difference and a wonderful shopping experience can be created by the use of visual aesthetics and selected in-store music (Morrison, 2002).

(Hoffman and Turley 2002) investigated that the atmospherics of a store are composed of both tangible components (the building, carpeting, fixtures, POS decorations, etc.) and intangible components (colours, music, temperature, scents, etc.). The tangible and intangible components of atmospherics are divided into five different categories which include all of the atmospheric variables first: the exterior of the store, second: the interior, third: the layout and design of a store, forth: point-of-sale (POS) and decoration variables of a store, and fifth: the human factors associated with the store (Turley & MIlliman, 2000). Some stores attract the consumers while others do not. Some stores create a feeling of wellbeing and happiness, while others provoke a feeling of irritation among the shoppers. It is a key challenge for retail stores to create a positive store environment as it can urge the consumers to spend time in the store and spend money by approaching their aesthetic sense, by creating positive mood (Spies et al., 1997).

2.2.1 External Elements of Store Atmosphere

(Grossbart, et al. 1975) investigated the impact of atmospherics external variables on consumer shopping and found that there is a relationship between them. (Bitner, 1992) introduced a new method to measure the prototypicality of store design and found a relationship between store external and internal environment and of retail stores on store prototypicality and its affect on market share. (Edwards & Shackley, 1992) investigated first time the relationship between external variables and consumer buying decision. They found that window display is the most important external factor in influencing consumer buying decision. Design of window and color used in decoration also affect the buying decisions. Pinto & Leonidas, (1994 ) investigated the impact parking and location on shopper perception and purchase decision. They found a relationship but overall it has low impact. Sen, Block, & Chandran, 2002 demonstrated that promotion, image, fashion and fit affect the consumer’s purchase decision which he/she obtained from window displays. The outside look of the store presented the image of the store and window display serve as an advertising tool and sales promotion for the retailers. Cornelius, Natter, & Faure, (2010) investigated a relationship between store front display and retail store which propose significant means for differentiation in the retail market. They found that innovative store front display benefited better store image. They also found that window decoration, arrangements, entrances, building design and lighting have also positive impact over consumer perception.

Oh, Fiorito, Cho, & Hofacker, (2007) contributed to fill the gap in literature by conducting a research on consumer’s perception of store front window display that influence consumer purchase selection in different situations. He found that visual perception of window display of store influenced the consumer’s mind positively but it depends on display type, motivation level and cognitive load. Loureiro & Roschk, (2013) proposed a model by examining the effect of the atmospheric cues, information design and graphics design on loyalty intentions and positive emotions of the consumers. In the model a comparison has been made between online and offline stores and consumers' age is taken as moderator in the study. Results of the study proved that Information design predicts loyalty while graphics designs promote positive emotions and loyalty. Moreover information design is salient over graphics design in the online context. They also investigated that information design create positive emotions and loyalty and graphics design does not foster positive emotions. The study revealed graphic designs have stronger effect on loyalty and significant for younger customers as compared to older ones in online context, while positive emotions predict loyalty among younger customers whereas the case is not so among older ones in offline context.

2.2.2 Internal Elements of Store Atmosphere

Kotler, (1973-1974) divided store atmosphere in four dimensions: Aural, Visual, Olfactory and Tactile. Visual dimensions included color, size, brightness and shape of the store. Aural dimensions included pitch and tempo, volume of music. Olfactory dimensions included freshness and scent, while tactile dimensions included smoothness, softness and temperature. Bitner, (1992) proposed a framework to understand relationship between store environment and consumer’s purchase decisions. He focused on ambient conditions (air quality, temperature, , music noise and odor), space function (equipment, layout and furnishings) and symbols , sign and artifacts. Baker, Grewa, & Parasuraman ,(1994) introduced a comprehensive model of atmospheric dimensions that influenced the consumer perception during shopping. They discussed three dimensions of store inside atmosphere i.e. ambient dimensions, design dimensions and social dimensions and found a positive relation between them. Ambient dimensions included music, lighting and smell. Design dimensions included displays, floor covering, wall covering, colors used inside, cleanliness, dressing room, layouts, aisels and signs. Social dimensions included sales people. Babin, Hardesty, & Suter, (2003) Investigated the impact of store environment comprised of a vast array of separate elements included color, music, illumination and aroma windows display on consumer purchase decisions. He found that they are highly interrelated and work combined synergistically to affect consumers. Morrison, et al. (2011) studied the relationship between satisfaction level and emotions of the shopper. They found that the arousal that has induced by aroma and music has resulted in increased pleasure level, and it has indirectly positively influenced the behavior of the shoppers and they spend more time and money. In this way they experiences satisfaction with their shopping. Teller & Charles, (2012) found that arousal has direct effects on consumer behavior. They also demonstrated that there is a positive relation of music and aroma on pleasure and time spent in the store during shopping.

2.2.3 Store Atmospherics and Impulse Buying

Initially the literature did not provide significant coverage for the subject of store atmospherics (Darden, Erdem, & Darden, 1983). Marketing research has neglected the store atmospherics (Buttle, 1988). Exploration of the literature indicates that visual designs is an area which is a bit complex to investigate and researchers find it difficult to analyze, as it requires perceptions of creativity for analyzing it.

Components of store environment are considered as important determinants of buying behavior. A variety of methodological and theoretical approaches have provided about the components of store atmosphere which can affect consumer’s purchase intensions and these approaches are considered difficult for practitioners to adopt (Newman & Foxell, 2003).

During last few decades retailing research has focused on issues like pricing, distribution systems, customer services, marketing strategies, sales techniques and buying behaviors. Buying behavior is not only limited to choices related to product attributes; it is rathero affected by consumer perceptions, the influence of social environment, substitute products available in the market, different marketing strategies, shopping environment and various other internal and external factors that persuade consumer choices of a product. Retailers need to be aware of the ways of using and use store atmosphere and its components in their favor, to get success in the market (Shujaat, 2012).

Pleasant and striking shopping environment increases the chances of Impulse buying (A. Ali, ASF Hansu, 2013). Products displayed on store shelves attract the potential buyers and Young people have greater tendency of attraction towards product displays and Impulse buying in higher income group (Saif & Rehman, 2013). Visual Merchandising has positive impact on consumer buying behavior (Bhatti & Latif, 2013).

2.3 Retail Industry in Pakistan

In recent decade retailing is getting much more attention of the producers, marketers and researchers due its importance. Like other countries of world Pakistan is becoming very important for the stake holders. Pakistan is a good market for retailing industry due to its economic growth. In 2013-14 the GDP was 3.3% whereas it was in 4.1 % by the end of 2014 which showed that it will increase in 2015. According to the survey of (Us Census Bureau,2009) Pakistan is at the number sixth in the list of most populated country in the world. Total population has been segregated into two major parts (i.e. rural 66% and urban 34%) respectively, (World Atlas, 2009). The retail levels in Pakistan are not same regarding products and demands. These vary from product to product and city to city. There are two main types of retailing in Pakistan. First is traditional and second is modern retailing. Traditional is common in the whole county where as modern is only in metropolitan cities (i.e. Karachi, Lahore, Islamabad, Multan, Rawalpindi and Faisalabad) consisting of Hyper Star, Metro, Al-Fateh, and some new big stores. Makro and metro introduced in Pakistan market in the mid of 2007. Makro was established by a joint venture between House of Habib and SHV of Netherlands with the name of Makro Habib Pakistan Ltd where as Metro introduced with collaboration of local cooperation. Both stores opened a new era of retail industry in Pakistan.

2.4 Future Prospects

Consumers are different in different parts of the world. To be successful, it is important for companies to completely understand their consumers. Wal-Mart has always tried to keep their format standard in their international operation

s. Cultures that are similar to the American culture or those that are highly influenced by the American culture have accepted the Wal-Mart formats as is. But, countries like Germany and South Korea have not accepted this format. To be successful in India and Pakistan, Wal-Mart will have to learn from their German and South Korean experiences, and make suitable changes to meet the need of the Pakistan consumer.

If Wal-Mart is to be successful in Pakistan, it will need to compete not only on price, but also on other key levers.

It remains to be seen what value proposition from domestic or international retail chain stores will appeal to Asian consumers as their retail marketplace undergoes massive change in the next decade. With increasing purchasing power of the Asian consumers, mixed demographics (people belonging to all age groups), people belonging to all income groups and with the increasing literacy rate, Asian markets are the biggest play fields for the retailing giants all over the world.

These big stores provide a chance to the customers to purchase a large number of house hold products from them. Retailing chains like Hyper Star, Metro, Al-Fateh, and some new big stores are successful getting a huge market share in the Pakistan retail industry. Therefore Pakistan’s market is becoming so attractive for foreign as well as local investors, producers and marketers from retiling point of view. Many big retailing chains around the world are taking interest in Asian market specially Pakistan and India due a big market gap in modern retail industry trend. These chains work on the concept of standardization which is not applicable in the countries like Pakistan and India. But due to globalization and fast growing internet technology cultural diversity is decreasing with the passage of time and creating a homogeneous culture around the world. Secondly with the improving infrastructure there will be big gap of retiling market other than metropolitan cities. Thirdly, producer and marketers are spreading information about brands awareness and brands recognition very fast in whole world which creates a big gap of new stores even in Pakistan and India. Lastly, due to rapid change in the nature of retail industry and consumer preferences Pakistan’s market its self creates a potential gap for new stores. These new retail stores chains not only fulfill the demands of customers as well as become a good source of foreign direct investment and economic growth.

2.5 Theoretical Framework of Study

2.5.1 Research Model:

Term Store Atmospherics was initially defined by (Kotler, 1973) as “the effort to design buying environments to produce specific emotional effects in the buyer that enhance his purchase probability”. Kotler gave a five-dimensional classification of store atmospherics, which were based on five senses. Later on researchers redefined the term atmospherics as ambient factors such as sound (music), environment based, not product based, e.g. crowding, arousal, smell (overall odor) and sight (including wall colors). Hull and Harvey (1989) defined micro and molar characteristics as the physical characteristics of the environment that create a particular atmosphere, micro characteristics such as color, music, light and sound and emergent properties that result from the sum of the micro characteristics, were named as molar characteristics. Environment factors consist of three components ambient factors, design factors and social factors (Baker, 1986). Bitner (1992) analyzed how consumers respond to a retail environment and found that consumers can react to a retail store in a cognitive, emotional and biological way. This research aims to analyze one of these aspects: the cognitive factor and the relationship between store atmospherics and consumer impulse buying behavior will be examined.

After reviewing above literatures, studies, and models i.e. Baker, Cause and effect relation and SR model, following model has been developed. In this model Store Layout, Point of Purchase Displays (Product displays, promotion signage), Ambient Factors and Human Factors have been taken as independent variables and Impulse Buying Behavior is taken as dependant variable. This study is based on S-R (stimulus-response) model in which store atmosphere acts as stimulus for a buyer by affecting his buying decision making process different ways including cultural, social, personal and psychological needs, which may or may not lead them leads them towards impulse buying, which is response of the stimuli.

Abbildung in dieser Leseprobe nicht enthalten

Adapted from: Tinne, ( 2011), Chang, ( 2012), MA, VEI, & Chen, (2012) and Kim, (2003)

2.5.2 Hypotheses of the Study

Based on exploration of literature on store atmospherics and its impact following hypothesis has been made:

H1: There is positive relationship between Store Layout and impulse buying.

H2: There is positive relationship between in-store Point of Purchase (product displays, promotion signage) and Impulse Buying.

H3: There is positive relationship between Ambient Factors of store atmosphere and Impulse Buying.

H4: There is positive relationship between Human Factors of store atmospherics and impulse buying.

3 Subjects and Methods

3.1 Research Philosophy

Researchers have identified two major research philosophies namely positivism (scientific) and interpretivisim (known as antipositivist) (Galliers, 1991).

3.1.1 Positivism

In positivism researchers collect general information from a larger sample and draw conclusion on basis of the sample. In positivism researcher’s own beliefs have no influence on the results of the study; this philosophical approach mainly involves experiments, observations and numerical data. (Easter-by-Smith et al 2006).

3.1.2 Interpretivism

Interpretivists believe that reality can be understood only through subjective interpretation of the reality. This philosophy focuses on real facts and figures related to the research problem. This type of research can be used to understand a specific business problem. In interpretivism usually small sample is taken and used to understand the problem. In this type of research personal beliefs and values of the researcher may affect the findings of the study (Kasi 2009).

In this study positivism research philosophy has been used as it better suits the numeric and quantitative research.

3.2 Research Approach

The research approach in this specific study is deductive. Since arguments are reasoned from general premises, which either are known or presumed to be known in advance; towards a more certain and specific conclusion.

3.3 Nature of Research

In terms of nature of research is divided in two main types Aaker & Day, (1990) Yin, (1994):

3.3.1 Exploratory Research

Exploratory research is used to explore a research problem, when the problem is vague or undefined (Emory & Cooper, 1991). When the researcher is going to develop new proposition for future research then exploratory research approach is carried out (Yin, 1994). It is used when researchers aim to find out what is happening (Saunders et al. 2000). Observation making, information gathering skills are required to carry out exploratory research. Ghauri & Gronhaug,(2005). Experience survey, focus groups, and literature exploration are the techniques which are required to conduct an exploratory research (Emory & Cooper, 1991).

3.3.2 Descriptive Research

Descriptive research describes the characteristics of a problem or situation being faced (Zikmund, 2000). The objective in a descriptive study is to learn nature of a specific research problem by answering the where, who, when, what and how’s of a specific problem under study (Emory & Cooper, 1991). For a well structured and organized research problem, descriptive approach is appropriate (Widersheim Paul & Eriksson,(2001); Ghauri & Grønhaug, (2005).

3.3.3 Explanatory - Causal research

In explanatory approach is used when research the problem is well structured and aims at determining the impact of one variable on the other (Emory & Cooper, 1991). Purpose of causal or explanatory research is to develop and empirically explain the developed theory. In explanatory research, researchers face cause and effect relationship is determined (Ghauri & Grønhaug, 2005). In this study explanatory or causal research has been applied and the effect of different elements of store atmospherics on impulse buying behavior of the shoppers has been analyzed. Therefore, in this explanatory approach has been applied to explain the research model and to answer the stated research hypotheses and research questions.

3.4 Research Methodology

Samuel, Donkor, & Awuah (2012) Collected primary data using self designed and self administered questionnaire and analyzed the data using (ANOVA) and found that factors such as window display, atmospheric cues and promotion influence impulse buying behavior. It was also found that age, family income, gender, personality type and religion affect impulse buying. Furaiji, et al. (2012) investigated the factors which affect consumer behavior and choices of consumers in electric appliances market. They analyzed psychological factors, social factors and marketing mix using Pearson’s coefficient of correlation and found that correlation between each factor and consumer behavior was positive. Using ANOVA they also found that there is insignificant relationship between cultural and personal factors.

Random sampling technique has been used in this study. The sample size was 600 respondents from different cities of Pakistan. Quantitative research approach has been be used. Data was collected through self administrated questionnaire. It has been used in this study due to the following reasons: This method is widely used for non experimental social science research, relevant population is targeted and it provides an impartial, systematic, theory based representative, self monitoring, replicable and quantitative approach for data collection.

Based on the model given by Baker; this study has been conducted using Store layout, Point of purchase displays, Ambient and Social factors of store atmospherics as independent variables and Impulse Buying as depended variable.

3.4.1 Purpose of Survey

The major objective of using survey approach is to collect primary data from consumers of different types of stores in Pakistan. It is to find that how consumers perceive and evaluate the different aspects of store environment which lead them to buy of leave the store whitout making a purchase in Pakistan.

3.4.2 Sampling Frame

Consumers were selected through convenience technique from different cities of Punjab i.e. Islamabad, Lahore, Okara, Sahiwal, Pakpattan, Arifwala and Multan cities of Pakistan. Buyers of different products (Food, Grocery, Apparel, Cosmetics etc), who usually purchase from big stores in their particular locality, were approached. Only those respondents have been included who are responsible for shopping either for themselves or the households. People who did not have experience of shopping from stores were excluded from sample.

3.4.3 Sample Unit

Sample unit are the consumers of shopping stores in Punjab, Pakistan.

3.4.4 Sample Size

The sample size kept was 600. The sample size has been calculated via the sampling calculator explained by (Raosoft, 2004).

3.4.5 Sampling Technique

The sampling technique used is simple random sampling because population of the cities is known and using Raosoft Sampling calculator sample size can be calculated.

3.4.6 Questionnaire

The questionnaire has been adapted from previous studies as a survey instrument. It is more valid and reliable because it has been already tested in other studies. The questionnaire contained two sections: first section had questions related to personal information i.e. age, gender, qualification, family structure and experience. The second part of questionnaire consisted of questions on Impulse Buying the dependent variable and Ambient Factors, Design factors and Social Factors, the independent Variables.

Survey research method has been used because and it provides an impartial, systematic, theory based representative, self monitoring, replicable and quantitative approach for data collection.

The questionnaire consists of two sections: In first section questions are related to personal information i.e. age, gender, qualification, family structure and experience. The second part of questionnaire has questions on Dependent and independent Variables. Therefore in total, the questionnaire consists of 54 questions, out of which 07 questions are based on demographic characteristics of respondents.

3.5 Data Analyses Technique

The purpose of the quantitative research is to verify the theory through data validation which was collected during the research. This data validation is done through some statistical methods and techniques. These methods and techniques help in describing, synthesizing and interpreting quantitative data. There are two types of statistical technique.

- Inferential Statistics
- Descriptive Statistics:

Inferential Statistics:

A statistical technique which estimates, predicts, or generalizes a decision about a population based on a sample (Anderson, Sweeney, & Williams, 2006).

Descriptive Statistics:

Descriptive statistics is the method of managing, summing and presenting data in an informative way. In research descriptive statistic has been used to verify the theory. Descriptive statistics can be interpreted through graphs, measures of central tendency and variability measures. Graphs provide information to the researcher to see the distribution of scores. Graphs can be represented through pie chart, frequency polygon, box plot, stem-and-leaf chart. Measures of central tendency enable the researcher to see the average scores. Central tendency is calculated through mean, mode and median. Measures of variability enable the researcher to understand how the group scores have spread out. It can be calculated through Range, quartile deviation, variance and standard deviation. In descriptive statistics measures of relationship can be calculated through Spearman and Pearson correlation. Correlations mean to estimate the degree of relationship between the variable in numeric values. The value which shows the degree of the relationship is presented as a coefficient of correlation and it is denoted by r. Value of co-efficient of correlation varies between -1 to +1. When the value of r is -1, it means there is perfect negative correlation and when r is equal to +1, it means there is perfect positive correlation. Spearman correlation is used to measure the relationship of rank and ordinal data where as Pearson correlation is used to measure the relationship for data of interval or ratio scales. In descriptive statistical techniques Regression analysis is performed and an equation is generated, which describes the statistical relationship between response and predictor variable. Many software are present in the market for data analysis but SPSS, Minitab and excel are most famous (Anderson, Sweeney, & Williams, 2006). In this study data has been analyzed using SPSS software.

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