A PROJECT REPORT ON A STUDY OF IMPACT OF STORE

AMBIENCE ON THE CUSTOMER BUYING BEHAVIOUR.

A Project Submitted to

University of Mumbai for partial completion of the degree of

Bachelor of Commerce (Accounting and Finance)

Under the faculty of Commerce

By

Nisha Anil Imbichunni

Under the Guidance of

Dr. Farhat Fatma Shaikh

Mahatma Education Society’s,

Pillai College of Arts, Commerce and Science, Plot no.10, Sector 16,
New Panvel,

Navi Mumbai, Maharashtra, 410206

2018-2019

1
A PROJECT REPORT ON A STUDY OF IMPACT OF STORE AMBIENCE ON
THE CUSTOMERS BUYING BEHAVIOUR.

Submitted to

University of Mumbai for partial completion of the degree of

Bachelor of Commerce (Accounting and Finance)

Under the faculty of Commerce

By

Nisha Anil Imbichunni

Under the Guidance of

Dr. Farhat Fatma Shaikh

Mahatma Education Society’s,

Pillai College of Arts, Commerce and Science, Plot no.10, Sector 16, New
Panvel,

Navi Mumbai, Maharashtra, 410206

2018- 2019

2
 DECLARATION

I, the undersigned Ms. NISHA ANIL IMBICHUNNI here by, declare that the work embodied in this
project work titled “A STUDY ON IMPACT OF STORE AMBIENCE ON THE CUSTOMER
BUYING BEHAVIOUR” forms my own contribution to the research work carried out under the
guidance of DR. FARHAT FATMA SHAIKH is a result of my research work.

Wherever reference has been made to previous works of others, it has been clearly indicated as such and
included in the bibliography.

I, here by further declare that all information of this document has been obtained and presented in
accordance with academic rules and ethical conduct.

NISHA ANIL IMBICHUNNI

Certified by

DR. FARHAT FATMA SHAIKH

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 ACKNOWLEDGMENT

To list who all have helped me is difficult because they are so numerous and the depth is so enormous.

I would like to knowledge the following as being idealistic channels and fresh dimensions in the
completion of this project.

I take this opportunity to thank the University of Mumbai for giving me chance to do this project.

I would like to thank my I/C Principal DR. GAJANAN P. WADER for providing the necessary facilities
required for completion of this project.

I take this opportunity to thank our Coordinator Mrs. ABIDA KHAN, for her moral support and
guidance.

I owe my profound gratitude to our project guide DR. FARAD FATMA SHAIKH who have been a
perpetual source of inspiration and offered valuable suggestions to improve my knowledge.

Lastly, I would like to thank each and every person who directly or indirectly helped me in the
completion of the project especially my Parents and Peers who supported me throughout my project.

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 INDEX

PARTICULARS PAGE NO.

CHAPTER 1: INTRODUCTION
1.1 Background of the study 7
1.2 General Scenario 10
1.3 Essential Elements 14
1.4 Retail Store 15
1.5 Components of Store Ambience 17

CHAPTER 2: RESEARCH METHODOLOGY

2.1 Meaning 19
2.2 Objectives 19
2.3 Selection of Topic 20
2.4 Scope of Study 20
2.5 Methods of Data Collection 21
2.6 Sample unit and Sample size 24
2.7 Tools for analysis data 24
2.8 Significance of Study 24
2.9 Limitation of the Study 24
2.10 Research Problem 25

CHAPTER 3: REVIEW OF LITERATURE

3.1 Store Atmosphere 27
3.2 Lightening 28
3.3 Background Music 29
3.4 Colour 30
3.5 Visual Merchandising 30
3.6 Customer Experience 31

CHAPTER 4: CONCEPTUAL FRAMEWORK

4.1 What is Retail Store? 33
4.2 History of Retail Industry 35
4.3 Retail Industry in India 36
4.4 Importance of Retail Marketing 38
4.5 India’s booming retail sector 39
4.6 Definitions 39
4.7 Importance of Retailing Strategy 41
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4.8 Store Ambience in Retail Store 42
4.9 Component of Store Ambience 43

CHAPTER 5: DATA ANALYSIS, 47

INTERPRETATION AND PRESENTATION

CHAPTER 6: CONCLUSIONS AND SUGGESTIONS 67

REFERENCE/BIBLIOGRAPHY 69

APPENDIX 71

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 Chapter 1: Introduction

1.1 Background of Study

For retailers and store managers, shopping is the art of persuasion. Though there are many
attributes that can influence how and what the consumers will buy. However, visual cues such
as lighting, background music, color and visual merchandising being the strongest and most
persuasive factors compared to the other attributes (Bohl, 2011)

In 1973, Kotler has introduced the concept of store atmosphere, that is, the effort to design a
physical store environment that provides specific emotional effects to the customers that
encourages customer behaviour. The buying process in a retail atmosphere is triggered when
the customer recognize that they put high expectation towards a store (Bohl, 2011).It is because;
besides product and services, the atmosphere of a store also one of the influential factors in the
purchase experience (Kotler, 1973). In fact, Turley & Milliman (2000) believed that store
atmosphere contributes to a business success or failure. Store atmosphere encompass the
attributes that aims to strengthen the store environment with the combination of different cues
such as lighting, color, background music, and scent.

Kotler (1973), found that the earlier meaning for store atmosphere is like a purchase
environment was designed to produce specific emotional effects towards the customer and then
the purchase probability. Although increasing the sales and profits become the priority
objective and missions for most of the retail stores, the store managers have been realized that
the level of customers’ experiences and perceptions while having their visit in the store also
become the prime objectives to them. Thus, the retailer especially in the automotive dealership
industry wants to make the customer to stay longer in the store, so that customer can explore
the ideas and make decision to purchase more products or service since they already attracted
to the store atmosphere (d’Astous, 2000).

Along with the trends toward retail innovation and evolution, retailers and store managers now
interested in how shoppers get experience while they come to the store. It has long been
recognized that consumers respond not only based on the product or service quality itself but
they also take much attention on the store environment.

In figure 1.1, based on Jungmi (2007), stimulus in the first box identified as independent
variables that used to create store atmosphere. The researcher put the measurement of design

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factors, storefront design and information display as the main focus in this study. In this
framework, the independent and dependent variables are connected through the mediating
variables which are the consumer’s perception towards the store images, safety, convenience,
and entertainment. While the dependent variables are the response of the individuals’
expression and the study concentrate on the consumers’ expectation towards the merchandise
quality.

Figure 1.1: The effects of stimulus (design factors & information display) on store
image and consumers’ expectation towards the merchandise quality.

Based on Ishwar Kumar (2010), retail atmospherics as shown in Figure 1.2 consisting of
selected atmospheric cues such as lighting that can be discuss about the bright or dim
lighting, background music whether it slow, ballads, classical or familiar music, attractive
window dressing and layouts, unique architectural design, freshness and nice fragrance,
appropriate temperature to build a cozy and comfortable environment, match and trendy color
coordination, captivating and memorable logo, an ideal type of good and merchandise crowd
that can bring behavioural effect to the current and future consumers (Smith and Burns, 1996).

The entire retail environment that includes the design of store brands can develop their own
brand messages and consumer experiences throughout the shopping endeavour. The retail

environment is harmoniously designed in order to communicate brand personality

and the store image. In order to create positive customer perceptions, the retailer
can do some innovation project for the store atmosphere and by doing that, the store will
provide silent communication with the customers about the retailer's brand value, each element

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of the retail environment also need to be transformed so that it is differentiated from the other
retailers. On the other hand, retailer also can make it more standardized and thus tend to
contribute the consumers' purchase decision (Bohl, 2011).

Figure 1.2: The relationship between the store atmospheric cues and the effect on
consumer

However, according to Baker (1987), he has identified those environmental cues in a store
which are ambient factors (temperature, humidity, background music, scent and
cleanliness),design factors (colour, decor, texture, style, pattern, layout, accessories and
signage) and social factors which is the influence of human presence in the store area. Based
on Baker (1987) study, the ambient factors such as background music and scent did not
motivate the customerpurchase decisions, but it is important to simply meet the customer
expectations and experience.

In summary, atmosphere enhancement in a retail store is very essential since the customer will
observe the surrounding store area and it automatically can influence the customer’s experience
and perceptions. Besides, a business isimpossible to hide their actual store atmosphere from the
customer to feel and see by their own

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. 1.2 General scenario

Today when our country is orienting by imbibing the globalization trends, there are lot of things
that are changing. The customers are business. Without them, even the most fantastic, life-
changing product will get no sales.

Customers are so central to business success that some marketing experts – like Joe Pulizzi, in
his book “Content Inc.” – say that when you’re thinking about going into business, you should
start with the audience (your potential customers) first.

In the growing era of rivalry retail shop have to deliver what customers want. It’s the whole
point of being in business. And if they aren’t delivering what people want, they are basically
going out of business… be it quickly or slowly.

The other part is about their experience of getting (and using) that product. It’s the product
discovery, the ordering, the shipping, and all the customer service interactions in between. It’s
the second part – the customer experience part - As many of us know, “customer experience”
aspect of the product is becoming more and more important. A huge impact on customer
experience is the store atmosphere commonly referred as store ambience that matters to
customers. A store atmosphere includes the physical characteristics of a retail store used to
create an image to attract customers. It is a direct contributor to the customers experience,
which is the most important element of retail today.

Customers not only care about how a store looks or feel, but they're also likely to make
purchasing decisions based on the ambience of the establishments they patronize. The store
ambience is an Environment that is created by visual communications, lighting, music, colours
etc., to generate a stimulus among the customer ‘s perceptions & emotions that will affect their
purchasing behaviour.

The store atmosphere is about having a look and an environment that suits the target market &
invites consumer for purchase. The Indian consumers generally shop from markets and areas
which are tacky, filthy, stinking. They buy goods at bargained prices. But this trend is changing.
Instead of moving into weekly haats, meals, mandis or any other traditional form of retail,
consumers prefer walking into an air-conditioned store to buy the products.

Not only had this, but clean & tidy stores, high speed escalators, scented environment, arresting
displays draw their, attention making it more comfortable and fun to shop. Today the stores
have become hotspots of entertainment for a major chunk of the population i.e., The Youth.
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The consumer expectation for modern Retailing environment is accelerating at a very fast pace.
In order to create an unparalleled experience with the retail store understanding the customer
preferences is of prime importance. The store ambience is to be designed to make shopping
easy and also give a comfortable feeling.

It enhances the shopping experience by assisting the shoppers what they want from an
assortment of products in the store. To create favourable mindset of the consumer towards the
store image and store position it is important to have an ambience that has the potential to make
the shopping pleasurable by forgetting the bitterness of heavy prices to be paid for expensive
products in the stores. With the growing trend of modernization, architects are designing
stimulating storefronts and interiors that create an, impression of distinctiveness. It helps
satisfying the Customers and to create a warm welcoming feeling which will certainly enhance
a customer ‘s mood and improve the chances of turning a single sale into a long- term
relationship.

It is incredible to make a sale but it is so much more profitable to keep the customer satisfied
thus making developing customer loyalty. Store Ambience also assists in enhancing the brand
value of the various products. It helps to increase consumer footfalls and provokes them for
repeated purchases. It is possible to attract the customers using the right mix of elements of
store ambience. It is very simple a poor ambience negatively affects the representation of the
product.

In retail context atmospherics means aesthetics and ambiance of a store. The atmospheric
variables like colour, music, smell, lighting, crowding, window displays, and store design, store
font etc. reflect the store atmosphere and play a very important role in customers' perception
and evaluation of the store. Retail stores with pleasant environment and moderately arousing
atmosphere are likely to influence shopping behaviour of the customers in a positive way. The
buying process starts as soon as consumers recognize their needs. Their decision of shopping
depends upon many factors like the decision to enter into a particular store, the time spent by
them inside the store, the ambience of the store, the store environment etc. the buying decision
very much depends on the store environment and its effect on consumer emotions.

Earlier consumers mainly focused on product functions or attributes to opt for a shopping place.
Nowadays, consumers ask for added beneficial elements to select retail outlets for their
purchases. A pleasant atmosphere of the retail chain outlets is one of those elements which are
extremely desired. The role of store atmosphere in the success of retail outlet cannot be
neglected. Retail chain outlets are gradually replacing small traditional retailers. The success
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of the retail chain industry in comparison to traditional retailers is attributed to convenience,
choice of goods, huge space and low prices.

A good ambience is also required to facilitate the browsing process for products, which need
to be touched & felt before being chosen. Store ambience acts as a promotion tool used to
communicate the store‘s image. An attractive store ambience is just like an icing with cherries
on the cake. A striking store ambience draws the attention of the customer & enables him to
take purchase decision within shortest possible time, and thus enhancing the selling process.
The shoppers which comprise mostly of the youth desire a comfortable store, so that they can
stay for longer on each visit. Shoppers would tend to buy at a leisurely pace in such stores. In
many cases, these stores are also utilized for spending waiting or spare time or meeting up with
friends. The store ambience is responsible to create a difference between a forgetful transaction
and a memorable retail experience.

Research shows that the store atmosphere leaves a distinct impression on customers. The 1997
study "Store Atmosphere, Mood and Purchasing Behaviour" found that customers rate
establishments differently based on atmosphere. The study compared two furniture stores, one
with a "pleasant" atmosphere and one with an unpleasant ambiance. It concluded:

"Customers' mood – measured at the beginning, in the middle and at the end of their shopping
– was shown to improve in the pleasant and to deteriorate in the less pleasant store. Satisfaction
with the store was greater in the pleasant store. Customers in the pleasant store spontaneously
spent more money on articles they simply liked."

Atmospherics can be captured through the five basic human senses, namely sight, sound, smell,
touch and taste. The ambient conditions, spatial layout and functionality and signs, symbols,
and artifacts as a measurement for atmospherics or Services cape. Ambient conditions discuss
the nature of surroundings, such as temperature, lighting, noise, music and smell. Space layout
and functionality visualize ways in which aisles, chairs, hallways and walkways, foodservice
lines, toilets, and the entrance and exits are designed and organized in service settings.

Signs, symbols, and artifacts consist of signage, personal artifacts, decoration, and other
physical features that work as signals that connect with users. Ambience refers to intangible
background features such as music, scent, and temperature. Spatial layout refers to the seating
arrangement in dining area and also measures the psychological characteristics (e.g.
congestion) of the layout itself. Also, employee factors are being seen as comprised of the
characteristics of staffs and other customers in the service setting. The element of spatial layout
will look into the way furniture and equipment are arranged in the dining area whereas the

12
variable of employee factors will focus on controllable factors such as the employee uniform
and ample number of employees only.

On the other hand, when looking at the relationship between store atmospherics and perceived
value there is a partial significant relationship between store atmospherics and perceived value.
Zooming deeper into the result revealed that interior design and employee factors had direct
effects on perceived value, whereas ambience and spatial layout did not influence perceived
value significantly. Viewing the impact of store atmospherics on behaviour intentions, it is
further noted that favourable environment can motivate behavioural approaches, such as the
desire to stay, look around and discover the environment, and to communicate with others in
the environment, while unfavourable environment might direct to adverse effects of approach
behaviour which is avoidance.

The relationship among store atmospherics and behavioural intention brings us to the following
propositions:

Proposition 1: Store atmospherics will have significant positive influence on perceived value.

Proposition 2: Store atmospherics will have significant positive influence on customer

satisfaction.

Proposition 3: Store atmospherics will have a significant positive influence on behavioural

intention.

Customer satisfaction can lead to subsequent behavioural intention such as repurchase and
positive word-of mouth communication. The above facts direct the relationship between
customer satisfaction and behavioural intention. In addition, satisfaction has a significant effect
on customer loyalty. The relationship between customer satisfaction and behavioural intentions
are weak of which they further conclude that satisfied customers are not necessarily loyal
customers. These arguments have prompted the development of the following propositions
namely:

Proposition 4: Customer satisfaction will have significant positive influence on behavioural

intentions.

Proposition 5: Customer satisfaction mediates the relationship between store atmospherics and
behavioural intentions.

Proposition 6: Customer satisfaction mediates the relationship between perceived value and
behavioural intentions.

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1.3 Essential Elements:

Work from the outside -The work outside is the first thing the customer sees before entering
the store; the storefront. Thus, the business always focus creative energies on how the signage
and storefront look like. The signage is well-lit in the evenings and made to look clean and
well-looked after. Not only does this give you an edge over opposition, it represents the store’s
inclination towards welcoming its customers. Add-ons like store-related kiosks and stalls
outside the store also add value to the shopping experience and attract footfall. For example,
outside a food outlet ice cream kiosk are a good add-on.

Store Ambience - Store ambience is always inviting and comfortable. In most businesses, this
keeps the customers around as long as possible. The longer they linger, the more they will
usually spend. In any case, they want the customer to enjoy coming to the store thus the
atmosphere makes it welcoming, attractive and friendly. Store owners always make an attempt
to decorate and provide a visually interesting space. Appropriate lighting, well painted walls,
neatly stacked racks, attractive decor, friendly yet unobtrusive sales people, soothing/peppy
music (as the brand demands) are a few things the store owner look into in the hope of
increasing footfalls. Researchers have proven that 70 per cent of purchase decisions are in-store
decisions, and these are largely influenced by the placement of merchandise, in-store signage,
the décor so on and so forth.

The location – It is important for shopper traffic in a store. A store is located at good location
where foot traffic can flow into the store which improves sales. The businesses ensure that the
surroundings of the store area are welcoming. In cases where littered area is front of the store
gives a bad impression. Instead of expecting customers to walk in, the retailer locates where
they are; at local events, near schools and malls. The business owners will go and invite people,
either for sales or promotional events. This drives clients into their store and deepens the
physical footprint of their said store.

One of the most important recent advances in business thinking is the recognition that people
in their purchase decision making respond to more than simply the tangible product or service
on offer. The tangible product is only a small part of the total of consumption package. Buyers
respond to the total product which include but not limited to services, warranties, packaging,
advertising, pleasantries, image and other features that accompany the product. One of the
most significant features of the total product is the place where it is bought or consumed. In
some cases, the place, more specifically the atmosphere of the place, is more influential than
14
the product itself in the purchase decision. In some cases, the atmosphere is the primary
product.

In today’s society consumers are experiencing more time pressures and have a need to escape
from hectic and stressful days (Deccan Chronicle, 2011). It can therefore be inferred that it
might be essential for retailers to realise this and make their physical instore environment as
pleasant as possible in order to satisfy consumer needs and provide them with an enjoyable
experience, not reminding them of their “busy and rushed” lifestyles (Gobé, 2009). Liaw (2007)
states that retail stores that do improve on their instore environment create an effective
consuming condition that might stimulate and satisfy the consumers’ immediate purchasing
behaviour.

Ogden-Barnes and Barclay (2001) are of the opinion that subtle factors experienced through
the senses, namely sight, sound, touch, scent and taste, either individually or together, can affect
a consumer’s emotion in relation to a degree of stimulation and relaxation. For example,
different light and temperature combinations can act to influence consumer perceptions of the
retail offer, with soft or warm light tones and cool or warm temperature variables all creating
different perceptions in dissimilar product sectors. It is therefore critical for retailers to
determine how these key atmospheric elements are optimised in relation to the brand and
product offer in order to create a pleasurable shopping environment that will stimulate and
encourage sales.

1.4 Retail store.

Definition of Retail store by Merriam Webster-

It is a place of business usually owned and operated by a retailer but sometimes owned and
operated by a manufacturer or by someone other than a retailer in which merchandise is sold
primarily to ultimate consumers.

Retail is the process of selling consumer goods or services to customers through multiple
channels of distribution to earn a profit. Retailers satisfy demand identified through a supply
15
chain. The term "retailer" is typically applied where a service provider fills the small orders of
a large number of individuals, who are end-users, rather than large orders of a small number of
wholesales, corporate or government clientele. Shopping generally refers to the act of buying
products. Sometimes this is done to obtain final goods, including necessities such as food and
clothing; sometimes it takes place as a recreational activity. Recreational shopping often
involves window shopping and browsing: it does not always result in a purchase.

Retail markets and shops have a very ancient history, dating back to antiquity. Some of the
earliest retailers were itinerant peddlers. Over the centuries, retail shops were transformed from
little more than "rude booths" to the sophisticated shopping malls of the modern era.

Most modern retailers typically make a variety of strategic level decisions including the type
of store, the market to be served, the optimal product assortment, customer service, supporting
services and the store's overall market positioning. Once the strategic retail plan is in place,
retailers devise the retail mix which includes product, price, place, promotion, personnel and
presentation. In the digital age, an increasing number of retailers are seeking to reach broader
markets by selling through multiple channels, including both bricks and mortar and online
retailing. Digital technologies are also changing the way that consumers pay for goods and
services. Retailing support services may also include the provision of credit, delivery services,
advisory services, stylist services and a range of other supporting services.

Retail shops occur in a diverse range of types and in many different contexts – from strip
shopping centres in residential streets through to large, indoor shopping malls. Shopping streets
may restrict traffic to pedestrians only. Sometimes a shopping street has a partial or full roof to
create a more comfortable shopping environment – protecting customers from various types of
weather conditions such as extreme temperatures, winds or precipitation. Forms of non-shop
retailing include online retailing (a type of electronic-commerce used for business-to-
consumer (B2C) transactions) and mail order.

The most important component of visual merchandising is store atmospherics. The goal behind
any retail store’s design is to enhance consumer spending, to differentiate it from competitors
and to enhance in-store traffic (Pradhan, 2007). A method to enhance this can be seen to come
through the aspect of “atmospherics” – a term first introduced by PhillipKotler (Pradhan, 2007).
It is a word used by retailers to describe elements such as lighting, colour, music, aromas and

16
 so on that appeal to the five human senses and that contribute to the overall in-store
environment (Bell &Ternus, 2006). Bell and Ternus (2006) state that atmospheric elements
have the ability to influence consumers’ feelings about being in and staying in a retail store and
that the longer consumers stay in a store, the higher the chance that they will buy. The term
“atmosphere” or “atmospherics” can be defined as the physical characteristics of a store that
are used to develop an image in order to attract consumers (Berman & Evans, 2010).

The Mehrabian and Russell (M-R) environmental psychology model (1974), also known as the
stimuli-organism-response (SOR) model is one of the most commonly used models by retailers
to determine the effect of store atmospherics on consumers’ buying behaviour. This model can
therefore be described as one of the most effective models to use to explain the effect that
physical store environments have on consumers’ buying behaviour (Liu & Jang, 2009). The
model suggests that environmental stimuli (S) lead to an emotional reaction (O) that influence
consumers’ behavioural responses (R).

1.5 COMPONENTS OF STORE AMBIENCE:

Store ambience comprises of exterior atmospherics, interior atmospherics, store layout and
visual merchandising. The various elements of store ambience are as follows:

1. Exterior Atmospherics:

 Storefront
 Entrances
 Signboard
 Fascade
 Window Display
 Adjoining Store
 Parking Accessibility

2. Interior Atmospherics:

 Lighting
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 Flooring
 Temperature
 Trial Rooms
 Music
 Cleanliness
 Sales Staff

3. Store Layout:

 Front Display
 Floor Space
 Customer Traffic Flow
 Merchandise Grouping
 Payment Counters
 Department Location

4. Visual Merchandising:

 Theme of Window Display

 Promotional Signage
 Assortment
 Shelves and Moving Racks
 Lighting Fixtures
 Flooring Fixtures

All these factors of store ambience arouse all the six senses of the shoppers and the objective
of making customers comfortable, happy and spend more time in the store was fulfilled. These
factors project an image of the store in the mind of the customer which helps retail stores in
forecasting repeated visits of the shoppers in the retail stores. The three factors i.e. sight, sound
and smell are the big determinants of a retail store ambience.

Chapter 2: Research Methodology

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 2.1 Meaning:

Research methodology is a systematic approach in management research to achieve pre-defined

objectives helps a researcher to guide during the course of research work. Rules and techniques
stated in research methodology save time and labour of the research as researchers know how
to proceed to conduct the study as per the objectives.

2.2 Objectives of the project-

1. To understand the impact of ambience on the customer’s purchase intension.

2. To study the effect of store ambience on the sales of retail shop.
3. To know where ambience of the store attracts the customer.
4. To identify the influence made by store lighting and design on customer buying pattern.
5. How environmental stimuli influence shopping behaviour.
6. To understand whether customers consider store ambience while selecting any outlet.
7. To know whether store ambience has positive or negative impact on store ambience.
8. To know about the customer’s preference regarding ambience.
9. To understand how retail store uses ambience as marketing strategy.

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2.3 Selection of Topic

A study on the Impact of Store Ambience on the Customer Buying

Behaviour.

2.4 Scope of Study:

This research is one that helps to contribute to many aspects involved like that of consumer
satisfaction, purchase intention, and store ambience features influence. One of these aspects
that is supported though this research would be that of store ambiance factors having a
correlation to consumer’s satisfaction when shopping. Physical store characteristics help to
enhance customer satisfaction for the fact that these are features that appeal to the customer’s
senses, particularly that of smell, sound, and look. By appealing to these senses, companies
help to satisfy the appeal aspect of their customers. Service quality is another store ambiance
feature that allows companies and stores to make their customers feel valued and important
while shopping.

This creates a connection between stores and customers which will allow customers to be
satisfied based on the assistance they are receiving from employees. This is a concept that can
help to set stores apart from that of their competitors as well.

This research has become more pertinent in recent years due to the fact that many companies
can obtain and sell similar products offered at like prices or revert to online product sales. Due
to this, companies need ways to differentiate themselves from that of their competitors. That is
where this research comes into play for the fact that as marketers, we need to be aware of what
factors should be enhanced within our stores based on what our customers prefer, in order to
make our customers satisfied. In the end, this will help to increase sales by adjusting to our
customers’ desires and needs.

Customers’ perception of stores can be utilized by stores by enhancing physical store

characteristics like that of a signature fragrance, trendy music that reflects the genre of the store,
and lighting that is used to highlight particular merchandise. Stores can also offer a wide
selection of merchandise for their customers to choose from in order to satisfy them.

Lastly, retailers can enhance their service quality in order to be of more assistance to their
customers, which in turn will make them feel more important and satisfied in their experience.
Retailers can use this information in order to enhance their brick-and-mortar stores to better
meet the needs of their customers while at the same time increasing customer purchases.
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2.5 Methods of Data Collection:

2.5.1 Meaning of Data Collection

Data collection is the process of gathering and measuring information on targeted

variables in an established system, which then enables one to answer relevant questions and
evaluate outcomes. Data collection is a component of research in all fields of study including
physical and social sciences, humanities, and business.

2.5.2 Importance of Data Collection

Regardless of the field of study or preference for defining data (quantitative or

qualitative), accurate data collection is essential to maintaining the integrity of research. Both
the selection of appropriate data collection instruments (existing, modified, or newly
developed) and clearly delineated instructions for their correct use reduce the likelihood of
errors occurring.

A formal data collection process is necessary as it ensures that the data gathered are both
defined and accurate and that subsequent decisions based on arguments embodied in the
findings are valid. The process provides both a baseline from which to measure and in certain
cases an indication of what to improve.

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2.5.3 Methods of data collection are classified into two such are explained by

Diagram-

Primary Data:

Primary data are those which are collected fresh and for the first time and thus happen to be
original in character. Primary data are information collected by a researcher specifically for a
research assignment. In other words, primary data are information that a company must gather
because no one has complied and published the information in a forum accessible to the public.

Method of Primary Data Collection:

There are several methods of collecting primary data, particularly in survey and descriptive
researches, such are as below:

a. Observation Method:
In observation method, the information is sought by the way of investigator’s own direct
observation without asking from the respondent.

b. Interview Method:

22
 Personal interviews the interviewer asks questions generally in a face to face contact.

c. Schedule Method:
In this method of data collection is very much like the collection of data through
questionnaires, with little difference that lies in the fact that schedules containing a set of
questions are being filled in by the enumerators who are specially appointed for a
purpose.

d. Questionnaire Method:
In this method a questionnaire is mailed to the person concerned with a request to answer
the questions and return the questionnaire. This method is most extensively applied in
various researches of human and economic geography.

Secondary Data:

Secondary data are the data collected by a party not related to the research study but collected
these data for some other purpose and at different time in the past. If the researcher uses these
data then these become secondary data for the current users. These maybe available in written,
typed or in electronic forms. A variety of secondary information sources is available to the
researcher gathering data on an industry, potential product applications and the market place.
Secondary data is also used to gain initial insight into the research problem. Secondary data is
classified in terms of its source-either internal or external. Internal, or in-house data, is
secondary information acquired within the organisation where research is being carried out.
External secondary data is obtained from outside sources.

23
2.6 Sample Unit and Sample Size

Sample unit- The location for the study selected is Navi Mumbai.

Sample size- There is 70 respondents taken from Navi Mumbai area.

2.7 Tools for Analysing Data

The statistical tools are used for data analysis such as –

 Table
 Graph
 Bar charts
 Pie diagrams

2.8 Significance of Study

This study demonstrates how store atmosphere/ambience factors affect the

customer experience and behavioural intention in buying the product from retail store.
Therefore, it will give various benefit and advantages to the retail stores or companies to
understand the buying behaviour of the customers. And also, it will help to understand the
contribution of the ambience in the increase of sales.

2.9 Limitation of the Study

2.9.1 Respondents

Large samples tend to generate better result and minimize the probability errors. In this study,
questionnaire survey is conducted based on 50 respondents which are limited and unable to
produce a reliable result. The potential that the respondents may not be honest will answering
questionnaires are high. The number of respondents selected was 50 due to constraint of time
available.Besides that, some respondents might misunderstand those questions and did not
follow the instruction that will in turn affect the results of study. By using five-point Likert-
type scale for the questionnaire, respondents may confuse and not be able to expresstheir
additional comments and opinions for this study. Moreover, the potential that the respondents
24
did not read the questionnaire properly are high since the researcher provides a lot of questions
for the respondents to answer.

2.9.2 Sampling Location

In this study, sampling location is a limitation to get a respond from the respondent living in
Navi Mumbai only. It may not give accurate and complete information. Furthermore, there is
a possibility of a cultural and lifestyle bias playing a role in the outcome of the study.

2.9.3 Secondary Source

Limited information sources and databases can be searched through for this topic of the
study. Moreover, some journals and articles may require payment. Due to limited budget, it
was unable to access those journals or articles that need to be subscribe. In fact, there were only
few local researches conducted the research that are applicable to our study. Most of the
journals and articles we referred to were based on the topic in foreign countries. Thus, I had to
find more journals to combine and support for validity of the study.

2.10 Research Problem

Retail industry is a kind of business with high level of competition. The success of retail
business is influenced by its fast response and its ability in understanding consumers’
behaviours. Retail business must focus on its consumer preferences and factors that influence
a customer’s purchase decision. Store atmospheric attributes (including color, lighting, sales
personnel, music and so on) form the overall context within which shoppers make decisions of
store selection and patronage. Past research on retail environment suggests that such attributes
affect the image of the store. Retailers realize the importance of such attributes and
systematically try to avail of an ambience, including appropriate colors, music and so on that
will attract their target customers. Further, purchase decision making has become complex due
to inseparability of product and services offered in retail outlets.

The available literature regarding this subject area deals with the elements of store atmospherics
and their effect on customer patronage, buying behaviour and customer store choice decisions
(Wanninayake&Randiwela, 2007; Liaw, 2007; Yalch& Spangenberg, 2000: Liu & Jang, 2009;

25
Jang &Namkung, 2009; Kang et al., 2011). The majority of studies have, however, focused on
the retail industry, more specifically on supermarkets (Wanninayake&Randiwela, 2007), spas
(Kang et al., 2011), restaurants (Liu & Jang, 2009; Jang &Namkung, 2009) and furniture stores
(Spies et al., 1997).

Studies carried out have focused on different types of store atmospheric elements, such as
lighting, design layout, product display and cleanliness (Wanninayake&Randiwela, 2007), the
effect of store characteristics on customers’ mood, satisfaction and purchasing behaviour (Spies
et al., 1997), the influence of store design, store music and store employees on shopping mood
and patronage (Liaw, 2007; Liao &Liaw), the effect of music on shopping times (Yalch&
Spangenberg, 2000) as well as the effect of atmospherics, emotional responses, perceived value
such as service and product quality and behavioural intentions (Liu & Jang, 2009; Jang
&Namkung, 2009) and environmental sensory components such as sight, smell, sound and
touch (Kang et al., 2011). It is therefore clear that the term “store atmospherics” has been
investigated in various ways, but none of the above studies focused on the apparel retail
industry or on all the atmospheric elements such as layout, colour,lighting, scent, sound,
fixtures, wall texture, temperature, width of aisles, dressing facilities, personnel, merchandise,
prices, cash register placements, cleanliness and technologies (Berman & Evans, 1998).

According to Liaw (2007), there has been a concentrated focus on the individual factors of store
environment such as music and lighting, but none has focused on the overall store environment
cues. A gap in the existing literature was therefore identified and the opportunity was takento
investigate the influence of store atmospherics/ambience (sight, sound, touch and scent) on
consumers’ buying behaviour.

26
 Chapter 3: Review of Literature

A literature review is a step-by-step process that involves the identification of published and
unpublished work from secondary data sources on the topic interest, the evaluation of this work
in relation to the problem and the documentation of this work (Sekaran & Bougie, 2009, p.38).
Therefore, in this study, each independent variable and a dependent variable will be reviewed
on previous studies that are related to this topic.

3.1 Store Atmosphere

According to levy and Weitz (2009), store atmosphere is referred as the attribute that aims to
intensify the store environment with the combination of different cues such as lighting, colour,
background music, layout, space, design and scent. The store atmosphere seems able to affect
customer feeling and experiences. Besides, According to Milliman, (1986) categorized
atmosphere as a term that is used to explain customer feeling towards the shopping experience
which cannot always be seen. When the customers receive fantastic experiences while visiting
a store, then, they will pass a positive word of mouth to their closed peoples such as friends and
families. The percentages of the customer to come back to the store are also high since they
were comfort with the store environment. In addition, Kotler (1973) was the first one that used
the “atmosphere” term described it as the design of store environment that can stimulate buyers’
emotions and ultimately affect their purchasing behaviour.

Developing a strong positive atmosphere has become important to the companies to sustained
competitive advantage. Birtwisle and Shearer (2009) has stated that researchabout the store
atmosphere has allowed retailers to create positioning strategies, develop store image and
enabled them to differentiate their stores in terms of the products and services on offer. A
dynamic store atmosphere also typically forms a positive impression of a retail store through
various method of communication such as word of mouth, personal experience, advertising,
recommendation and so on (Estelami et al,2006).

Sirgy et al. (2000) suggest that a good combination atmosphere factors in a store can create a
favourable consuming context and generate positive perceptive emotions about the store among
consumers. Store environmental factors can influence the subjective feelings experienced by
the consumers n the store and influence the shopping experience, consumption amount,

27
perceived quality, satisfaction, and shopping value (Babin& Attaway, 2000). Therefore, a
pleasant store atmosphere can affect the time consumers spending in the store.

Based on Hu & Jasper (2006), store atmosphere also gives impacts on the customer minds.
From years ago, store displays were mainly used only for the promotional purposes. However,
as customers nowadays became more sophisticated and knowledgeable, store managers have
discovered new roles for effective atmosphere. The latest, store atmosphere play roles like
communicating product information and store image, assisting consumers in making purchase
decisions and create exiting shopping experience. Moreover, customers perceived that they
would be more likely to come a store that have more in-store displays together with high
graphics dimension and user-friendly meaning (Mitchell &Oppewal, 2009).

3.2 Lightening

Lighting can be referred as the act of enhancing or illuminating, the light arrangement to create
particular effects, an effect occurred by the arrangement of lights, and the way light falls upon
a face, objects, products etc, in a various situation (Freyssinier et al,2006). Based on Taylor
(2006), lighting is a key design element that contributes to the identity, comfort, and visual
quality of a retail store. Reports from Varley (2006) stated that, a high contributor to an appeal
store atmosphere is the lighting used. For many specialty stores, the lighting design reflects the
store’s image and as a tool to feature the store’s merchandise and business selling strategy.

According to Hoyle (2003), a successful lighting at any retail store and business environments
has the potential and probability to dramatically affect sales since lighting can increase the floor
traffic, create visual interest, bring effect to the color of merchandise and able to direct the
customer going through the store either deeper.

Based on Perney (1974), ideal store lighting can draw the customer’s attention to observe the
products particularly. Mehrabian et al (1974), also stated that the lighting which also one of the
environmental psychology can bring impact to the customer’s emotion and experience.
Usually, retailer provide a bright lighting in their store because, with this condition, products
are more often examined and touched compared to the ‘dim lighting’ conditions. Lighting also
can influence the attractiveness of products in a store (Magnum, 1998). In the customers’ eye,
products with high light levels were found to be more captivating than products with lower
light levels.

Donnovan et al (1994), also stated that a bright light and compatible background music can
increased consumer arousal and their enthusiasm. For the perspective of Vaccaro (2008), proper
28
use of light is another method to attract customer attention on specific products, capturecertain
experience and also hide any retail weakness and error.Occasionally, hiding some parts of store
to ensure those the dark areas are a strategy to maintain good store image. In fact, store lighting
can influence the consumers’ perception, emotion, cosiness and experience of store image
(Banat, 2012). Besides, lighting also can give impact on consumer’s cognition, value and at last
the purchase decision making.

3.3 Background Music

Based on Yalch (1993), background music is the art of arranging sounds continuously, unified,
and evocative composition through the melody, harmony, rhythm, and timbre. It consists of
various style of music and soundscapes primarily intended to be passively listen and hear by
the store visitor. There are many studies show that background music in a retail store can
inspires customers to buy and make their shopping experience more pleasant. A store can
simply create the mood, able to stimulate the customer’s mind with install the right music.

Since years ago, many retailer set a background music in their store because the ability to
enhance the store atmosphere. Besides, music is popularly known as the influence factors of
customer’s emotion and behaviour (Milliman, 1982). Compatible background music means that
the store played the right music at the right time which is depends on situation and season to
create positive impact on the customer experience (Ruchi et al, 2010).

A lot of studies state that background music is capable of evoking emotional state, leaving a
lasting impression and behavioural responses in consumers (Matilla& Wirtz, 2001). Based on
Kulkarni (2012), retailer should carefully select music genre, style and tempo from their
marketing toolbox. Morrison (2001) stressed that playing classical background music can
influence the decision making rather than the product itself. It also can create prestigious store
atmosphere, leading to a customer perception of luxury merchandise.

According to Milliman (1982), instead of arousing the customer’s feeling, background music
also one of the effective tools to communicate with customers in non verbal way. Playing a
happy and upbeat background music can creates customer’s enthusiasm towards particular
products while or slow music able to create high purchase decision and intention (Alpert et al,
1988). In Auto Bavaria, it is not appropriate to play a loud music because the customers need
a calm situation in order to think and make a right decision when dealing and purchasing
something expensive.

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3.4 Color

According to Kouchekian (2012), many past researchers have been carried out a study about
the physiological effects of color towards the customer. It is disappointed when there are still
many retailers did not aware or did not know the use of color psychology in their business.
Color has a powerful subconscious effect on every part of human lives (Zalanski, Paul & Fisher,
1989). Being understood about the meaning of color especially in business gives the store
manager an invaluable tool to create a successful business by do the marketing, promotional
efforts and receives best customer experience and feedback.

Color can be defined as the visual perceptual property corresponding in humans to the base
categories that we called primary colors which are red, blue, and yellow (Bellizzi, 1992). Color
derives from the spectrum of light interacting in the human eyes. With colors the retailers can
set mood, attract attention, and also make statement. Colors also can use to energize and also
to cool down. By selecting the right color scheme, the store manager can create an ambience
of elegance, warmth and tranquillity and convey an image. So, to make it simple, color can be
the retailer most powerful design element if they learn to use it effectively (Kemmis, 1998).

3.5 Vis ual Merchandis ing

Based on Kouchekian&Gharibpoor (2012), Visual merchandising plays many important roles

in retail sector. It includes the activity of enhancing the products presentation, support brands,
increase store traffic and sales and adds visual excitement, by having strategic arrangement and
illuminated the focal destinations in a store atmosphere.

Based on Pillai et al (2003), visual merchandising is the presentation of a store and its
merchandise to the customer through the teamwork of the store’s advertising, display,
decoration, merchandise arrangement, special events, showroom coordination, and
merchandising departments in order to sell the goods and services offered by the store. Visual
merchandising is becoming more and more important in giving a store competitive edge, since
many stores share merchandise sources and therefore carry similar items. In other words, good
visual merchandising gives the merchant an invaluable competitive edge as well as defining a
store’s personality in today’s marketplace (Mills et al, 1995).

Based on Moormann (1995), visual merchandising must attract and hold the passer-by until it
can arouse the interest from the customers. If a display is

30
sufficiently surprising and unusual, a potential customer will view it more closely. Kim (2013)
said that visual merchandising can heighten the store images and increase sales efficiency. In
order to have a good visual merchandising, the retailer must establish a different strategy such
as create an enjoyment store atmosphere and organize the merchandise in the store effectively.
Visual merchandising is integrated with the total planning and operation of a store. In addition,
top level executives such as store planning director and the visual merchandising director who
are the ones that responsible to meet with the corporate executives of a company to determine
such things such as the corporate image, changes of physical facilities, seasonal projections and
various other retailing innovations (Paul et al, 1995).

3.6 Customer Experience

Every business provides a customer experience. That experience may be good, bad or
indifferent. Customer experience can be defined as a sum of all experiences and perceptions a
customer has while purchasing goods or services with a retailer based on all interactions and
thoughts about the business. In other words, it is an individual experience whether conscious
or subconscious while having a transaction in a store (Gilboa et al, 2003). Customer experience
consists of awareness, discovery, attraction, interaction, purchase, communication, and
emotion. When a retailer success to deliver and create different experience to the customers,
the probability for the customer to spend in the store are high. Besides, experience also can
inspire loyalty to the customers (Richardson, 2010).

Based on SAS Institute (2013), customer experience refers to the practice of designing and
reacting to customer interactions to meet or exceed customer expectations and thus increase the
customer satisfaction, loyalty and advocacy. Good customer experience management can
strengthen the brand and store preference through different experiences, boost revenue with
incremental sales, improved the customer loyalty through valued and memorable store
atmosphere, and also can lower the cost by reducing dissatisfied customer.

Based on Johnston & Kong (2011), customer experience also a phrase used to describe the
relationship a customer has with a business. Customer experience also an integral part of
customer relationship management (CRM), and it is important to company because customers
who have positive experiences tend to become repeat and loyal customers of a business. Many
previous studies stated that whatever the product or service that a business organization offer
to the customer to buy or receive, that customer will have the experience whether it good, bad
or indifferent (Johnston & Kong, 2011).

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32
 Chapter 4: Conceptual Framework

4.1 Introduction to Retail Store?

A retailer or retail store is a business enterprise whose primary source of selling comes from
retailing. Retailing includes all the activities involved in selling of goods or services directly to
final consumer for personal, non-business use – Philip Kotler.

Retail is the process of selling consumer goods or services to customers through multiple
channels of distribution to earn a profit. Retailers satisfy demand identified through a supply
chain. The term "retailer" is typically applied where a service provider fills the small orders of
a large number of individuals, who are end-users, rather than large orders of a small number of
wholesales, corporate or government clientele. Shopping generally refers to the act of buying
products. Sometimes this is done to obtain final goods, including necessities such as food and
clothing; sometimes it takes place as a recreational activity. Recreational shopping often
involves window shopping and browsing: it does not always result in a purchase.

4.1.1 Different types of retail store-

Today, consumer can shop for goods and services in a wide variety of stores. The important
types of retail stores are:

1. Speciality store
Speciality stores carry very limited product lines with deep assortment. They offer a wide
choice in terms of models, size, style, colour and other important attributes in the assortment
carried.

2. Department store
A departmentalstore is a large retail outlet that handles a wide variety of lines of product. It has
a wide assortment in each line and is organized into separate departments for purposes of
buying, promotion, services and control. It is sometimes called mass merchandising
departmental store e.g., military canteens.
3. Super markets
A supermarket is designed to serve the total needs for food, laundry and household maintenance
products. It is relatively large in size. Its operation is low cost, low margin, high volume and
self-service in nature.
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4. Convenience store
A convenience store is located near residential area. It is relatively small. It is kept open for
long hours. A limited lines of convenience products are offered for sale. The prices charged are
slightly higher.

5. Discount store
A discount store sells standard merchandise at lower prices. Higher volumes of sales
compensate lower margins and increase the overall profitability. Discount retailing has moved
into speciality merchandise stores such as sport goods stores, electronics stores and book shops.

6. Off price retailer

An off-price retailer sells left over goods, over runs, and irregulars obtained at reduced prices
from manufactures or other retailers. Off price retailers may be of three types.

1. Factory outlets
These are owned and operated by manufacturers. They carry the manufacturer’s surplus,
discontinued or irregular goods. e.g., dinner ware, shoes, upscale apparel, etc.

2. Independent off-price retailer

Independent off-price retailers are owned and run by entrepreneurs or by divisions of larger
retail corporations.

3. Warehouse clubs
These are otherwise known as wholesale clubs. They sell a limited selection of brand-name
grocery items, appliances, clothing etc.

7. Super store
Super stores meet consumers’ total needs for routinely purchased food and non-food items.

8. Hyper Markets
Hyper markets originated in France. Hyper markets combine speciality stores, limited line
stores in a single level store. Product assortment goes beyond routinely purchased goods. It
includes furniture, large and small appliances, clothing items, etc.

Bulk display and minimum handling by store personnel are the other features present in the
hyper markets. Discount is offered to customers who are willing to carry heavy appliances and
furniture out of the store.

34
9. Catalogue showroom
Customers order goods from a catalogue in the showroom. Then, they pick these goods up at a
merchandise pickup area in the store.

4.2 History of Retail Industry

The Sears and Roebuck store is one of the first well renowned retail stores to ever open up. The
store started off as a mail order business that sold things such as clothing, shoes and household
items in their very own catalog. Their first retail store opened up in 1925 and branched from a
clothing catalog with household items to a large retailer. Since then it has had success with the
addition of automotive, lawn and garden as well as optometry.

Retail sales tend to increase every year with the addition of new stores coming onto the market.
Clothing and mass merchant stores such as Wal-Mart tend to have significant increases in
retails sales by their main selling points that reel customers in are their commitment to have the
lowest prices and also to remain competitive with other merchants that sell the same or similar
items.

Retailers have used many tools in the past to be able to attract customers and generate a higher
amount of retail sales. Advertising in newspapers and magazines contribute to a high amount
of aid in overall sales. Holding customer appreciation days where special offers are utilized as
well as free giveaways to provide customers with the incentive to buy more at their store.

Retail sales increase on one of the biggest shopping days of the year called Black Friday. Black
Friday has been a shopping tradition for centuries and has led to a nationwide phenomenon.
Black Friday is held the day after Thanksgiving and offers some of the biggest savings to
shoppers for the entire year. Most people do 80% of their holiday shopping on Black Friday.
Stores compete for each other's business by offering shoppers incentives and price reductions
on high ticket items such as computers, clothes and small appliances.

Retail sales have changed over the years by becoming more comforting to shoppers by
introducing their own credit cards for preferred shoppers, special hours for shoppers to come
in and receive early bird incentives and also restaurants and day care centres built right into the
stores. Many retailers also offer a hands-on approach to their retail items, allowing customers
to try out items before they buy them right at the store.
35
Retail sales has evolved in the past decade as allowing customers the opportunity to participate
in a more enjoyable shopping experience than ever before therefore making a positive impact
on the history of retail sales.

4.3 Retail industry in India

Retail industry in India is undoubtingly one of the fastest growing retail industry in the world.
It is the largest among all industries accounting to 10 per cent of the country GDP and employs
around 8 per cent of the workforce. India has seen a drastic shopping revolution in terms of
format and consumer buying behaviour. From shopping centres to multi-storied malls to huge
complexes offering shopping, entertainment and food all under one roof and it is because of
this trend that the retail industry is witnessing a revolution as many new format markets like
hypermarkets, supermarkets, departmental stores have made their way in the market.

India has also been world’s top sourcing destination in 2016-17 and the share in this category
is 55 per cent. In India, a major chunk of the middle class and also the untapped market of retail
is an attractive force for all the retail giants from across the globe. Our working population with
a median age of 24 years, along with emerging opportunities in the retail sector is one of the
major factors of the growth in the retail industry of India. As many new businessmen are
entering the industry, there is expected to be a growth in the retail sector.

India is still largely an unorganized retail market where maximum retailers operate in less than
500 sq. ft. of space. The total retail industry is estimated at 9 lakh crores of which the organized
sector accounts for a mere 9 per cent indicating a huge potential market opportunity that is lying
in the waiting for the consumer-savvy organized retailer. Today, the organized players have
ventured into each and every retail category.

India’s retail sector is witnessing accelerated growth, with retail development taking place not
just in major cities and metros, but also in Tier-II and Tier-III cities. The purchasing power of
Indian consumer is growing in categories like apparels, cosmetics, shoes, watches, beverages,
food and even jewellery.

4.3.1 Growth:
36
Due to the large scope of business and high growth potential, India is attracting investors across
the globe. In FDI Confidence Index, India ranks 8th (after U.S., Germany, China, UK, Canada,
Japan, and France).India is all set to gain from the latest FDI policy in retail.There has been an
increase in purchasing power of the consumer due to easy availability of credit which has
given a push to higher value items and encouraged repeated purchases. There has been a
clear shift in consumer mindset in buying. They are more educated and well informed. They
have become more experimenting and are willing to try and buy products which they haven’t
been used as yet. The expansion of middle class has led to higher purchases of luxury products
and brand consciousness. Significant growth in discretionary income and changing lifestyles
are among the major growth drivers of Indian retail industry.

With GST taking its shape, it has helped the retailers simplify its tax structure. This will lead
to better supply chain structure, better cash flows, pricing, and profitability.

4.3.2 Opportunities:

Rural markets show high growth potential if tapped with the right set of products and pricing.
With increasing investments in infrastructure, connectivity to such towns is now becoming
easier. This helps the retailer to increase reach in such high potential markets.

The private label space in the organized Indian retail industry has begun experiencing an
increased level of activity. The share of private label strategy in the US and the UK markets is
19 per cent and 39 per cent, respectively, while its share in India is just 6 percent. Thus, this
gives a tremendous opportunity for the homegrown label to expand its base.

India ‘s price competitiveness attracts large retail players to use it as a sourcing base.Many
international retailers are increasing their sourcing from India and are moving from third-party
buying offices to establishing their own wholly-owned/wholly-managed sourcing and buying
offices.

4.3.3 Challenges:

37
Although retail industry in India is on a growing track not everyone has tasted success. Due to
various diversities in the state policies and local influences, it becomes a larger hindrance for
the retail to expand rapidly.

The high cost of real estate, deep discounting from e-trailers, non-availability of skilled labour
in rural market are a few challenges that may hinder the growth of retail industry. Innovative
concepts and model shall survive the test of time and investment.

4.4 Importance of Retail Marketing

Effective retail marketing is vitally important for today’s manufacturers. Without a presence in
retail stores, businesses rarely achieve the high level of exposure or widespread product
distribution that retail stores offer. Retailers can help small businesses by performing a wide
range of marketing services, from promoting products directly to customers to giving customers
a chance to view and test products.

4.4.1 Historical Importance

Historically, manufacturers were more powerful than retailers, according to the book “Retail
Marketing,” by Malcolm Sullivan and Dennis Adcock. If a retailer didn’t comply with a
manufacturer’s demands -- concerning product pricing, shelf placement, in-store promotions
and so on -- the manufacturer could refuse to supply the retailer and perhaps opt to work with
its competitors instead.

4.4.2 Modern Retail Marketing

More recently, technological, cultural and economic changes have shifted the balance of power
to retailers, according to Sullivan and Adcock. For example, retailers now can track customer
shopping data, which provides an important source of consumer research that manufacturers
can’t directly access. Also, retail stores have launched in-store brands, making them viable
competitors with major manufacturers. In other words, as retailers have increased their
capabilities and power, being able to work with retailers has become increasingly important for
any manufacturer whose business model depends on being visible to the typical consumer.

4.5 India’s Booming Retail Sector

38
The retail sector in India is fast emerging as one of the largest sectors in the economy,
accounting for more than 10% of the country’s GDP and around 8% of employment. With India
occupying the first rank in the Global Retail Development Rankings this year, the sector is
likely to boost growth further.

The retail sector has been undergoing a fast-paced revolution, fuelled by a growing consumer
base and technological advancements. A remarkable development in the last decade has been
the rapid evolution of the online retail sector. E-commerce industry is expected to be the
number one sector boosting retail industry growth in India and online retail is estimated to reach
US$ 70 billion by 2020.

The Confederation of Indian Industry (CII) along with JLL has recently released a Report on
“India Retail: Change is the New Constant” in June 2017, which highlights recent trends, retail
practices, role of technology and policy impact.

4.6 Definition of Term

4.6.1 Lighting

Lighting can be defined as the kind of igniting or illuminating, the arrangement of lights occurs
usually by specific equipment in order to achieve various different of effects. Besides that,
lighting is also can refer as the functional use of light to achieve a practical or aesthetic effect.
Lighting includes the use of both artificial supplies light such as lamps and light fixtures, as
well as natural illumination by capturing light from the sun.

4.6.2 Background Music

Background music is the art of sounds arrangement in a time so that it can produce a continuous,
unified, and evocative composition, as through melody, harmony, rhythm, tempo and timbre.
It is also refers to various styles of music or also known as soundscapes originally intended not
to be actively listened to. It is also can be said as supplement or additional features that are
apply in a particular situation or event. Background music that is usually played at a low volume
and it is not the main focus to be listened by the audience.

39
4.6.3 Color

Color and also known as hue is the element of art that is produced when light, striking an object
and it is reflected back to the eye or in other words is the property possessed by an object of
producing different effects on the eye as a result of the way it reflects or emits the light.

4.6.4 Vis ual Merchandising

Visual merchandising is including the combination of products, atmospheres and spaces into a
motivating and engaging displays and arranging goods and merchandise assortments within a
store to improve the layout and store appearance.

4.6.5 Customer Experience

Customer experience is the sum of all experience a customer has with a supplier of goods or
services, over the duration of their relationship with the supplier. This aspect includes the
customer’s awareness, discovery, attraction, interaction, purchase, use, transaction, observation
and participation.

4.6.6 Customer Behavioural Intention

Customer behavioural intention can be defined as a course of action, aim and concern that a
consumer brings to deal on a current or future purchase activity. It is known as the theory of
reasoned action which is a model for the prediction of human behaviour, feeling and attitude.
It is also a cognitive plan to perform a behaviour that has created through a choice or decision
process that focuses on beliefs about the consequences of the action.

4.7 Important Retailing Strategy used in India

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(a) Selecting a Target Market:
Before determining marketing mix, a retailer has to decide about the target market to be served.
Target market selection depends upon the size of the market, profit potential of the market and
level of competition. Retailers base their target market on demographics, geographic and
psychographic factors. Ultimately the retailers decide their target market on the basis of
neighbourhood.

(b) Merchandising Strategy:

Merchandising strategy refers to decision about the product lines, specific items within lines
and the depth. While deciding about the merchandise mix, the retailer has to evaluate Market
Activity (Market Share, Revenue Trends, Geographic and Demographic Trends), review
Product Category Performance (Sales, Margin, and Inventory Turnover), understand Company
Objectives ( Market Penetration, Revenue Growth, and EPS commitments), develop Annual
Merchandising Strategy (Market Shifts, Product Mix, High Level Space, Margin Goal Shifts),
and discuss Merchandising Strategy with Business Leaders (reconcile with Business Goals,
Financial Commitments).

(c) Customer Service Strategy:

Some of the retailers design their marketing strategy around the services for shoppers. Home
delivery, credit, return privilege, delivery and installation, and teleshopping are few such
services. Basic objective of all customer services is to attract and retain target customers.

(d) Pricing Strategy:

Pricing strategy depends upon a retailer’s marketing objectives and policies. We as customers
often have the perceptions that a particular retailer in the locality charges reasonably and the
other retailer charges higher for the same product.

(e) Location/Distribution Strategy:

Location is often held responsible for the retailer’s success or failure. Location depends upon
type of merchandise, the retailer’s finances, characteristics of target market and the availability
of site. A retailer may select pavement, residential areas, central market area, or planned
shopping centres.

41
(f) Promotional Strategy:
To lure customers retailers use different techniques of promotion. While the neighbourhood
retailers depend on word-of-mouth communication, the larger retail stores go in for advertising,
still bigger stores especially Big Bazaar buys full page in national newspapers and provide
different facilities to attract footfalls.

(g) Store Atmospherics:

With the passage of time the consumers have changed. Today, they prefer to shop at a retailer
whose exterior and the interior attract them. A store’s exterior depends upon architectural
design, window displays, and entryways. Interior atmospherics include store layout,
merchandise presentation, lighting, air conditioning, colour combination, sounds, scents and
cleanliness.

4.8 Store Ambience in Retail store

The emerging retailing trends in India, especially in urban agglomerations, pose the need to
understand how consumers derive value from atmospheric cues within retail settings and study
their impact on human (consumer) behaviour. The traditional and unorganized retailing in
India, the small “momand pop stores”, with a highly personalized service and credit extending
tradition is still bound in the shackles of time and generation. In an earlier research on store
choice behaviour in India, the new retail formats did not seem to add sufficient additional value
except for novelty (Sinha&Banerjee,2004). However, the retailing scenario in India is
changing, at least, in terms of consumer learning, comfort, and experiential value. This is
evident from the growth trends in organized retailing in India, which is constantly rising.
Although the share of unorganized retailing is quite high, yet there is a positive sign for
organized retailing due to emerging conditions. The emerging retailing conditions have put
both retailers and shoppers in a flux with no clear idea as to what may extend value addition in
the long run(Sinha&Banerjee,2004).

The term “atmospherics” coined by Kotler (Kotler, 1973-4; Areni& Kim, 1994), that
consumers interact with during their shopping experience (Sarel, 1996) is a matter of concern
for retailers due to the bourgeoning retailing conditions in India. Evaluating consumers'
perception of atmospheric cues can craft retail store image, enhance customer value, increase
performance and patronage intention by minimizing cost, time, and effort in retaining or
attracting new customers. Scholars have emphasized that there is significant relationship
between retail environment and consumer behaviour. They feel that advertising or other

42
promotional activities are important in marketing the brand yet they do not create the desired
store image that leaves a lasting impression on the consumers. The atmospherics can serve the
critical role of crafting and reinforcing the desired store image. However, due to dearth of
holistic approach and theoretical acknowledgement these appellations are still under
researched.

Retail Atmospherics

The retail store atmospherics is an array of tangible and intangible dispositions interwoven into
a web of meanings (Markin, Lillis, and Narayanan, 1976) that touches the social, psychological,
economic, cultural, and religious life style of consumers, due to concordance with currentfad
,fashion, andtrends.Retail atmospheric cues may generate sets-and-subsets of associations
related to attributes, benefits, emotions of pleasure-displeasure, attraction distraction, high-low
confidence, self-actualization, and basic human desires. The retail atmospherics consist of
environmental elements such as bright or dim lighting, classical or familiar music, attractive
window dressing and layouts, magnificent architectural design, freshness and fragrance,
appropriate temperature to make it cosy and comfortable, soothing and trendy color, attractive
logo, and gentle crowding are ideal conditions that can affect the current and future behaviour
of consumers (Smith and Burns, 1996). The entire retail environment that includes brand design
consistently throws brand messages that the consumer experiences throughout the shopping
endeavour. The retail environment is harmoniously designed in order to communicate brand
personality and image of the store. In order to add depth to the perceptions encapsulated in the
atmospherics and communicate the retailer's brand value, each element of the retail
environment is transformed so that it is differentiated from the competitors, standardized, and
stimulate consumers' purchasing activity.

4.9 Component of Store Ambience

4.9.1 Music

Music variations such as fast, slow, classical, instrumental, and hit numbers influence
consumers' mood, time spentandemotion. Inearlierresearches,the correlation of retail music
was found with time spent in shopping and relative familiarity with music. Changing music in
different parts of the store was found as influencing factor that can alter consumers' mood or
43
appeal to different consumer segments. In this research, we have
consideredthepossibilitythatcustomervalueisderivedthroughmusicin relation of
timespentinshopping,crowdcontrol,andethnicity.Wehavehypothesizedthatcustomervalueincrea
ses when customers' shopping time increases due to music familiarity or specifying special
occasion and festivity. Music may increase or decrease stimulus seeking behavior among
customers, affecting their actual shopping time, product selection, and shopping volume.
Shopper's time varies due to loudness and softness of music. Relative to “no music” or
“unfamiliar music,” playing “familiar music” increases consumers' attention to products and
service by emotionally connecting with them. Music can potentially increase consumer value
and shopping volume by providing relaxation and calmness to the consumer so that beneficial
associations are created in the mind. The consumers' interest in shopping, pleasure, and time
spent depend on the nature of the associations.

4.9.2 Color perception and Lighting

Lighting is an important determinant of retail environment. The impact of in-store illumination

on shoppers' cognition, value, and consumption behavior can be seen in reference to consumers'
arousal and vision as these are two important out comes of lighting effects. It changes
consumers' mood, creates excitement and gives thematic appreciation to the store image. It is
important to know whether customers feel more comfortable in bright light or soft light. Does
lighting preference change with store image? Areni and Kim found that the issue of “image”
versus “function” is highly critical in creating an appropriate atmosphere. However, discussion
with retailers in India revealed that lighting affects customer's attraction and choice of retail
store and visibility in evaluating products' features,price, ingredients, labels, etc. Butler and
Biner(1987) suggested gender differences in optimal lighting requirement in presence of
romantic partner. In this research, we evaluated the influence of lighting on customer value in
three perspectives, namely, in presence of a shopping partner; store image; and visibility of
merchandize. In India, we may clearly observe variations in lighting conditions in terms of
brightness and color of lighting used in different retail setups. The lighting conditions influence
consumers' time perception, visibility, and most importantly, the store image through
associations created in the consumer memory at a post-purchase stage. It can be used to draw
consumers' attention to strategic pockets in the store or it may help in down playing less
attractive areas.

Understanding color preferences of customers can help in communicating and building store
image. Consumers have learned to associate meaning with different colors or color combination
that are imbibed into the culture. Understanding color prejudices and their meaning beyond the
44
textual context on a local scale can help in adding value to the store’s image. Brands opt for
different colors in order to communicate their uniqueness, functionality, value, and category
membership. Consumers often associate brand and store image with their color. Brands like
McDonald use red and yellow color to communicate leadership and happiness. Colors have
differences in their significance, with changes in cultural context. For example, the color black
has different significance in western and eastern cultures. Universally the color pink is used to
communicate feminity, green is used for freshness, natural, and vegetarian, and so on.
Moreover, the color preferences of consumers change with change in
fashion,fad,andtrend.Inthisresearch,welookedatthecolorpreferenceofthecustomersandat what
the customers considered as fashionable and trendy. Color contrasts have different
psychologicaleffects.

4.9.3 Fragrance and Temperature

Scent, freshness, etc and temperature may help in creating a holistic atmosphere in a retail store.
These cues create holistic atmosphere in a retail store through aesthetically sensitive
dispositions, signal store'smerchandizeequality,clientele,
comfort,andoverallstoreimagethroughassociationsin theconsumermemory.
Earlierresearchesonretailenvironmentfoundsignificantandpositive outcomes on store image
due to consumers' emotion. Congruency of consumers' age, gender, and ethnicity with olfactory
factorscan be used in appropriate departments to influence consumers' buying behaviour.
Fragrance intensity varies with
consumers'gender,ageandethnicity.Ambientscentandproductclasshavesignificantimpact on
store image.The tactile factors such as temperature and smoothness of floor create aesthetically
sensitive environment that potentially increases customers' value due to personal comfort and
aesthetic values. Consumers in India often choose stores that facilitate comfort and
environmental control. For example, during summers, consumers often prefer to seek solace
and comfort in stores with air cooling facilities. These factors increase customers' exploratory
tendencies and sensation seeking behaviour. The tactile factors can potentially alter emotional
experiences that maybe stimulus seeking such as anxiety, lack of interest, foul mood and
uneasiness in a public place.

45
4.9.4 Layout, Signage, Décor

Design factors can create attraction and uniqueness to appeal to people at a focal point by
signalling a pleasant and worthwhile experience. The design aspects of retail stores are an ideal
convergence of artistic ideas, instinct, and business in a planned and profitable manner.
According to Din (2000), retailers need to create or find out new environment in which space,
cost and flexibility are designed in such a way that they effectively communicate brand value
and attract consumers. Store's layout may communicate value by increasing search efficiency,
comfort, inventory capacity, product quality, price, product displays, etc. Signage and window
dressing are the face index of the store that can attract or repel customers from the store.
Customers may develop associations of trust, value, quality of goods and services, price,
warranty and guarantee, etc as they come across visuals such as signage, window dressing,
logo, etc based on past shopping experiences. Signs and graphics used in the store act as bridge
between the merchandise and the target market. Design factors create theatrical effect, add
personality, beauty, and communicate store image.

46
 Chapter 5: Data Analysis, Interpretation and Presentation

5.1 Meaning of Data Analysis and Interpretation

A) Data Analysis:

The process of evaluating data using analytical and logical reasoning to examine each
component of the data provided. This form of analysis is just one of the many steps that must
be completed when conducting a research experiment. Data from various sources is gathered,
reviewed, and then analysed to form some sort of finding or conclusion.

Categories of data analysis:

I. Qualitative Data Analysis-

In qualitative researches using interviews, focus group, experiments etc data analysis is
going to involve identifying common patterns, within the responses and critically
analysing them in order to achieve research aims and objectives.
II. Quantitative Data Analysis-
In quantitative critical analysis and interpretation of figures and numbers, and attempts
to find rational behind the emergence of main findings.

B) Interpretation:

Interpretation refers to the task of drawing inferences from the collected facts after an analytical
and or experimental study. In fact, it is a search for broader meaning of research findings,
conclusion and recommendations.

47
 1. What is your age?

 15 - 25 
 25 - 35 
 35 - 45 
 45+ 

Table 5 . 1 - Distribution of respondent according to age group

Age Number of Percentage (%)

Group respondents

15 - 25 56 80%

25 - 35 11 15 . 7 %

35 - 45 2 2 . 87 %

45+ 1 1 . 43 %

Total 70 100 %

48
Figure 5.2The information of age group respondent.

100% Age Group

80%

60%

40%

20%

0%
15-25 25-35 35-45 45+
15-25 25-35 35-45 45+

Interpretation:

Based on the figure 5.2, majority of the respondents come from the age group of
15 to 25 years with 80% ,the second highest is age group of 25 to 35 years with
16%, while 2.87% come from respondent with the age range of 35-45 years and
the last one is 1.43% with the age more than 45+.The majority is from 15-25
which consist of youth of the country. They try to go with the trend of the market.

49
 2. What is your Gender?

 Male
 Female

Figure 5.3 The percentage of respondent based on Gender.

Gender
54%
53%
52%
51%
50%
49%
48%
47%
46%
45%
44%
Male Female

Male Female

Interpretation:

Based on the figure above, majority of the survey’s respondent are female with
53% while the remaining 47% is male. Since women’s are the main customers of
retail shop there purchase behaviour will be very important.

50
 3. What is your Profession?
 Student
 Employee
 Business
 Others
Figure 5.4 shows the profession of the respondents

Profession

3%
7.00%
Student

Employee
14.30%
Business

Others

75.70%

Interpretation:
According to figure 4.6, it can be concluded that majority of the respondents with
75.70% comes from the students profession. Second highest is 14.30% which
goes to those who are employed.TheBusiness profession respondents are 7% of
the total respondents. Others consist of housewife, advocates etc, only with 3%.

51
 4. What do you prefer?

 Online Shopping
 In store/ Physical Store

Figure 5.5 shows the preferences of respondents

retail shopping online shopping

21%

retail shopping

online shopping
79%

Interpretation:
From the above figure, we can see that majority of the respondents with 79%
prefer retail shopping over online shopping with 21% only. Because retail
shopping enables the customer to see and touch the products physically which the
online shopping does not provide.

52
 5. How frequently do you go for shopping?

 Weekly
 Monthly
 Occasionally
Figure 5.6 shows the frequency of people going for shopping.

Frequency

weekly
10%
weekly

occasionally monthly
50%
monthly
occasionally
40%

Interpretation:
From the above figure 5.6, it is observed that 50% of the population go for
shopping occasionally, while 40% go on for shopping on monthly basis and the
lowest 10% of the population go weekly. As India is a country of diversity. People
prefer to go shopping more on occasionally.

53
 6. What do you prefer more?

 Retail Store
 Street Shopping

Figure 5.7 showing preference of people

Sales

street shopping
25% retail shopping

street shopping

retail shopping
75%

Interpretation:

Based on the above figure we can see that 75% of the population prefer retail
shopping over street shopping with 25% because retail shops have good quality
product, store ambience, variety of choices etc. The other 25% population go for
street shopping because they are available at cheap price. In Indian market price
plays a very important role.

54
 7. What attracts you towards a retail store?

 Quality
 Store Ambience
 Price
 Trend

Figure 5.8 factors attracting customers towards retail shop.

factors

6%
11% quality

price

16% store ambience

trend
67%

Interpretation:

Figure 5.8 shows the factors that attracts the customer it is observed that majority
of the people that is 67% gets attracted due to quality products while 16% due to
price. The remaining 115 due to ambience of the store and 6% due to trend. The
quality of the product plays a very important role in customer buying behaviour
followed by price and store ambience respectively.

55
 8. What is the 1st thing you see when you enter a retail store?

 Lightening
 Display
 Cleanliness
 Interior
 Music

Figure 5.9

music
2%

interior display
23%
lighting
display cleanliness
46%
interior
music
cleanliness
27%

lighting
2%

Interpretation:

From the above figure it is observed that 46% of the population enters a store
because of the display set made by the shop. The second highest is cleanliness
with 27%, then interior of the store with 23% and lightening and music with 2%
each respectively.

56
9. Do you think store display have impact on your purchase decision?
 Yes
 No
 Maybe

Figure 5.10 The impact of store display

Maybe
19%

No
4%
Yes
No
Maybe

Yes
77%

Interpretation:
The above figure 5.10 shows the impact of store display on the customer purchase
decision.77% of respondent agrees that yes there is impact of store display pm
their purchase decision where as 19% think maybe and 4% of the respondent don’t
think that store display have effect on the purchase decision.

57
10. Do you think background music makes your mood pleasant while shopping?
 Yes
 No
 Maybe

Figure 5.11

Maybe
27%
Yes
No
No Yes Maybe
9% 64%

Interpretation:
Based on the above figure, it shows the impact of music on the mood of the
customers. 64% thinks yes it affects the mood while shopping and 27% thinks
maybe and 9% thinks it does not have ant impact on the mood.

58
11. Availability of parking while shopping is...
 Important
 Not Important

Figure 5.12 Availability of parking

10%

Important
Not Important

90%

Interpretation:

Based on the above figure it is noticed that 90% of respondents thinks availability
of parking is an important factor to be considered while shopping while 10%
thinks it’s not that important.

59
 12. Do you think pleasant environment of the store motivates you to spend more
time in the store?

 Yes
 No
 Maybe

Figure 5.13

16%

3%

Yes
No
Maybe

81%

Interpretation:

This figure shows how the pleasant environment of the store encourages the
customers to spend more time in the store, 81% says yes while 3% says no and
the rest of 16% thinks maybe

60
 13. Do you think lighting has an impact on the product selected by you?

 Yes
 No
 Maybe

Figure 5.13 Does lightening have impact on the selection of product

Maybe
15%
No
8% Yes
No
Maybe
Yes
77%

Interpretation:

From the above figure, the majority of respondent with 77% thinks lightening has
impact on the selection process. Other 15% thinks maybe it has an impact and the
rest of the respondents with 8% don’t think it has an impact on the selection of
the product.

61
 14. Do you consider store ambience while going for shopping?

 Yes
 No
 Maybe

Figure 5.14 Consideration of store ambience

Maybe
33%
Yes
No
Yes
Maybe
60%
No
7%

Interpretation:

The above figure shows do people consider store ambience while going for
shopping,60% says yes, 7% says no and the rest 33% says maybe.

62
 15. Do you select a store by looking at the store front design?

 Yes
 No
 Maybe

Figure 5.15 Store front design

Maybe Yes
34% 39%
Yes
No
Maybe

No
27%

Interpretation:

From the above figure, the majority of the respondent that is 39% considers store
front design while selecting a store, 27% don’t consider it and 34% thinks maybe.
The store front shows the variety of the products available, it grabs the attention
of the customers and tells a lot about the store.

63
 16. Time on average you spent on a Physical Store?

 Less than an hour

 1-2 hours
 More than 2 hours

Figure 5.15 Average time spent in a retail store

6%

Less than an hour

1-2 Hours
43% 51%
More than 2 hours

Interpretation:

The above figure depicts the average timespend by the customer in a store.The
majority of the customers spends less than an hour in a store that is 51%,the
second highest is 43% with 1 to 2 hours in store. The lowest is 6% with more than
2 hours in a store.

64
 17. Does background music make your long queue seem shorter?

 Yes
 No
 Maybe

Figure 5.16 Impact of music on long queue

Maybe Yes
37% 37% Yes
No
Maybe

No
26%

Interpretation:

Based on the above figure, majority of respondent that is 37% thinks that music
makes their long queue seem shorter while 26% thinks it does not affect there
waiting time and 37% thinks its neutral.

65
 18. Does different theme colour at the store attracts your attention?

 Yes
 No
 Maybe

Figure 5.17 Impact of theme colour in the store

Maybe
32%
Yes
No
Yes
58% Maybe
No
10%

Interpretation:

From the above figure, it is observed that 58% thinks that theme colour attracts
their attention while 10% says no and the remaining 32% thinks maybe.

66
 CHAPTER 6: Conclusions and Suggestions

6.1 Conclusions

The study was made to find the strategic importance of store ambience for all stores. The store
atmosphere more commonly known as store ambience plays a very vital role in enhancing
Customer ‘s Shopping Experience. The questionnaire was collected from the customer and the
result shows that the aroma and the lighting was the most influencing factor of the store
ambience and also there is a relationship between the factors of the store ambience and the
motivational factors. Hence the study will help the store in improving the performance in
various factors like music, odour, cleanliness, lighting, temperature and layout and store
displays.

The study was made to find the strategic importance of store ambience for all stores. The store
atmosphere more commonly known as store ambience plays a very vital role in enhancing
Customer ‘s Shopping Experience. The questionnaire was collected from the customer and the
result shows that the aroma and the lighting was the most influencing factor of the store
ambience and also there is a relationship between the factors of the store ambience and the
motivational factors. Hence the study will help the store in improving the performance in
various factors like music, odour, cleanliness, lighting, temperature and layout and store
displays.

The results of this research study identified that ambience of a store refers to physical
characteristics of a store like fascade, window display, music, lighting, temperature, odour;
fixtures etc. These factors draw attention of shoppers and make them enter the store for buying
the merchandise available in the store. All these ambience factors have a strong impact on the
likelihood of the shoppers because these factors put a psychological impact on the mind of the
customer make them relaxed and happy and pushes them for spending more time in the store
which ultimately increases the footfall in the store and leads to increase in sales due to un
intended buying.

Some of the studies concluded that atmospheric variables like scent, lighting and sound
influences a wide variety of consumers evaluations and behaviour. Researchers have also found
that customer satisfaction is influenced by store environment, shopping comfort and
merchandise assortment and repurchase intention is also determined by store environment,

67
 shopping comfort, and merchandise assortment while store loyalty is determined by shopping
comfort and store layout.

Most of the conceptual studies attempt to emphasize that good store atmospherics will
lead to positive effect on behavioural intentions of customers (such as return intentions and
positive word-of-mouth). Store environment and behavioural intentions will lead to customer
satisfaction, and simultaneously such satisfaction will independently have a positive influence
on buying intentions. It is also seen that lightening and display have a major impact on the
customer buying pattern.

6.2 Suggestions

As the Retail Industry is flourishing in the Indian market every retail owner is trying their best
to understand the customers needs, expectations and requirement so that their sales increases.
But every respondent is different from one another so it is very difficult to understand each and
every one. The retailers should come up with new techniques of store ambience to attract the
customers. The meaning of ambience differs from person to person. The retail shall consider all
the aspects of store ambience before setting up the store.

68
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 Appendix

Questionnaire:

1. Select the appropriate age group

 15-25
 25-35
 35-45
 45+

2. What is your gender?

 Female
 Male
 Other:

3. What is your Profession?

 Student
 Employee
 Business
 Other:

4. What do you prefer?

 Online shopping
 In store/ Physical Store

5. How frequently do you go for shopping?

 Weekly
 Monthly
 Occasionally

71
 6. What do you prefer more?
 Retail Store
 Street Shopping

7. What attracts you towards a retail store?

 Quality
 Store Ambiance
 Price
 Other:

8. What is the 1st thing you see when you enter a retail store?
 Lighting
 Display
 Cleanliness
 Interior
 Music

9. Do you think store display have impact on your purchase decision?

 Yes
 No
 Maybe

10. Do you think background music makes your mood pleasant while shopping?
 Yes
 No
 Maybe

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 11. Availability of parking while shopping is...
 Important
 Not Important

12. Do you think pleasant environment of the store motivates you to spend more
time in the
store?
 Yes
 No
 Maybe

13. Do you think lighting has an impact on the product selected by you?
 Yes
 No
 Maybe

14. Do you consider store ambience while going for shopping?

 Yes
 No
 Maybe

15. Do you select a store by looking at the store front design?

 Yes
 No
 Maybe

16. Time on average you spent on a Physical Store?

 Less than an hour
 1-2 hours
 More than 2 hours
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 17. Does background music makes your long queue seem shorter?
 Yes
 No
 Maybe

18. Does different theme color at the store attracts your attention?
 Yes
 No
 Maybe

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