Study on the impact of background music on the customers

in a closed community retail store setting

Research Report submitted in partial fulfilment of the requirements
for the degree of
Master of Business Administration

By
AISHWARYA RAJ (2027844)
RUKMANI SINGARAM (2027857)
SHREYAS V (2027912)
ALBERT DAVIS (2027916)
MAADESH K (2027930)
NIKHITA MATHEW (2027947)

Under the guidance of

DR. RAMAN SREEDHARA

MBA
School of Business and Management
CHRIST (Deemed to be University), Bangalore
JANUARY - APRIL 2021
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Declaration

We Group 3 - Aishwarya Raj, Rukmani Singaram, Shreyas V., Albert Davis, Maadesh K., and
Nikhita Mathew declare that this Research Report has not been submitted for the award of any
Degree, Diploma, Associateship, Fellowship or any other title, in CHRIST (Deemed to be
University) or in any other university.

We hereby declare that the Research Report on “Study of the impact of background music on
the customers in a closed community retail store setting” has been undertaken by us for the
successful completion of the course “Marketing Research and Analytics''. We have completed this
research report under the guidance of Dr. Raman Sreedhara.

Place: Bengaluru Signature______________________

Date: April 16, 2021

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Certificate

This is to certify that the Research Report submitted by Group 3- Aishwarya Raj, Rukmani
Singaram, Shreyas V., Albert Davis, Maadesh K. and Nikhita Mathew is a record of the work done
by them during the academic year 2020-21 under my guidance and supervision in partial
fulfillment of the requirements of Master of Business Administration degree.

Place: Bengaluru Signature__________________

Date: April 16, 2021 Dr. Raman Sreedhara

School of Business and Management

CHRIST (Deemed to be University)

Bengaluru
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Acknowledgement

We are indebted to all the people who helped us accomplish this Research Report successfully.

First, we thank the Vice-Chancellor, Dr Fr Abraham V M, CHRIST (Deemed to be University),

for giving us the opportunity to do this project.

We thank Dr. Jain Mathew, Dean, Dr. Georgy Kurien, Associate Dean (Main Campus), Dr.
Jeevananda S, Associate Dean (Kengeri Campus), Prof. Sirish V, Head (Main Campus), Prof.
Krishna M C, Head (Kengeri Campus), of Institute of Management, CHRIST (Deemed to be
University), for their kind support.

We thank Prof. Raman Sreedhara for his support and guidance during our thesis. We remember
him with much gratitude for his patience and motivation, but for which we could not have
submitted this work.

We thank our parents for their blessings and constant support, without which this report would not
have seen the light of day.
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Study on the impact of background music on the customers in a closed

community retail store setting

Executive Summary
This paper presents a study on the impact of background music on the customers in a closed
community retail store setting. Background music, a visual merchandising strategy has been
employed by many retail stores to attract customers and influence customer behavior and purchase
intention. The study aims to identify whether in a closed community setting, background music is
an effective element in influencing customer behavior in the retail store and impact of playing
music on the purchasing decision of the customers. The purpose of visual merchandising is to
tempt, engage and motivate the customers towards making a purchase decision, where it creates
an impact on the consumer buying behaviour. In this study, the key objective was to identify the
effect of playing background music on gender in the retail store. The study also examined the
impact of background music on the time spent by consumers in the retail store. To study the impact
and effect of the above-mentioned objectives, a leading retail shop was identified in the area of
Hennur, Bangalore named Township Trolley. This business was located inside an apartment
complex making it accessible only to the individuals residing in the apartment complex thus
making it a closed community retail store. Primary data was collected through the customers
entering the store and their activities inside the store. The researchers have done this to get a more
realistic and representative sample of consumers as the data source. Thus, primary data was
collected through the experimental research design inculcated by the researchers. The researchers
conducted the study on weekdays which were Monday and Tuesday and weekends being Saturday
and Sunday in the last week of March, 2021. The researcher made use of Paired sample test and
Independent sample test to decipher the relationship amongst the independent and dependent
variables. The study concluded that music did not play an important role in the time spent by the
customers in the store and the money spent by the customers and the researchers have made
marketing recommendations to help such closed retail businesses prosper with their existing
resources.
Keywords
Visual merchandising, Background music, Sales, Time Spent, Wallet Share, Sensor Retailing,
Retail Communication
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TABLE OF CONTENTS

Sl.No. Title Page Number

1 Introduction 8
2 Review of literatures 9
2.1 Visual merchandising 9
2.2 Music in retail 11
2.3 Time and money spent relationship 12
2.4 Sensory retail 13
2.5 Retail communication 14
3 Research gap 15
4 Research questions, objectives and hypotheses 16
4.1 Research questions 16
4.2 Research objectives 16
4.3 Hypotheses 16
4.4 Conceptual framework 17
5 Research methodology 17
5.1 Sampling 17
5.2 Instrumentation and data collection 17
5.3 Measurement 18
5.4 Experimental study 19
5.5 Statistical tools 19
6 Analysis and interpretation 21
Frequency Table of Demographic Profiling of gender in the
6.1 Experiment 21
6.2 Paired sample tests and Independent sample tests 22
7 Findings and results 32
8 Conclusion 34
9 Marketing recommendations 34
10 Methodological limitations 35
10.1 Limitations of paired sample tests 35
10.2 Limitations of independent sample tests 35
11 Further scope for research 36
12 References 37
Appendix 1: Data collection
Appendix 2: Saturday (variable and data view)
Appendix 2: Sunday (variable and data view)
Appendix 2: Monday (variable and data view)
Appendix 2: Tuesday (variable and data view)
Appendix 2: Overall combined dataset (variable and data
view)
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LIST OF TABLES

Table Page
Number Table Name number
1 Independent and dependent variables used in the study 19

LIST OF FIGURES

Figure Page
number Figure title number
1 Conceptual model of the relationship 17
2 Schedule for the Experimental Study 19
3 Frequency table for gender 21
4 Paired sample statistics and correlation for Saturday 22
5 Paired sample test for Saturday 23
6 Group statistics for no music for Saturday 23
7 Independent sample Test for no music on Saturday 23
8 Group statistics for music on Saturday 23
9 Independent sample Test for music on Saturday 24
10 Paired sample correlation for Sunday 25
11 Paired sample Test for Sunday 25
12 Group Statistics for no music on Sunday 25
13 Independent sample Test of no music on Sunday 25
14 Group Statistics for Music on Sunday 25
15 Independent Sample Test for Music on Sunday 26
16 Paired sample correlation for Monday 26
17 Paired sample Test for Monday 27
18 Group statistics for gender with no music on Monday 27
19 Independent sample Test for no music on Monday 27
20 Group statistics for gender with music on Monday 27
21 Independent sample Test with music on Monday 27
22 Paired sample Test for Tuesday 28
23 Group statistics for gender with no music on Tuesday 28
24 Independent sample Test for no music on Tuesday 29
25 Group statistics for gender with music on Tuesday 29
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26 Independent sample Test for music on Tuesday 29

27 Paired sample correlation for the entire dataset 30
28 Paired sample Test for the entire dataset 30
Group statistics for gender with no music and amount spent
29 30
for the entire dataset
30 Independent sample Test for no music for the entire dataset 31
31 Group statistics for gender with music for the entire dataset 31
32 Independent sample Test for music for the entire dataset 31
33 Integrated Model based on analysis 32

LIST OF GRAPHS

Graph Page
number Graph title number
1 Gender in relation to music 22
2 Gender in relation to no music 22
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1. INTRODUCTION

During the 18th century, store managers did not pay much importance to visual merchandising.
The ability to persuade a customer and the sales pitch was of more importance to the store owners.
Visual merchandising evolved over time and the shopping experience became more of a sensory
experience. Further, arcades were introduced that are passages made using iron and glass. Later,
grand expositions were introduced which are like huge fairs where merchandise is displayed in an
elaborate setting.
Visual merchandising is defined as “the activity which coordinates effective merchandise selection
with effective merchandise display” (Walters and White,1987, p .238). Visual merchandising is
concerned with how the product or brand is visually communicated and whether this message is
decoded appropriately. There are three types of interior display: merchandise display, point-of-
scale display and architectural display (Omar 1999). The key aspects within merchandise display
are layout, fixtures and presentation techniques. (Kerfoot, S., Davies, B., & Ward, P. (2003))
Visual merchandising enhances the attractiveness of the store and its perceived image from the
customer’s perspective. A positive mood serves as a factor for evaluating the perceived quality,
image of a product and store, and purchase decision (Bakamitsos, 2000). Atmospheric stimuli
which satisfy the emotional needs of the customer enhance the degree of customer participation
leading to favorable purchase behaviors (Wrightet al., 2006).Visual merchandising covers two
major areas: store exterior and interior, and a variety of components like color combination,
product placement, lighting arrangement, layout, props selection and fixtures and fittings are
involved in creating a favorable shopping experience for the customers. Combination of colors
and lighting plays a crucial role in influencing the purchase intention of customers and store
patronage. Positive imagery helps in connecting a better cognitive experience between customers
and products and further intensifying the purchase intentions (Mandler, 1982; Macinnis and
Price,1987; Meyers-Levy and Tybout, 1989).

Kotler (1974) defined the store environment as the quality of the surrounding space. It induces
desired affective responses and aims to enhance purchase probability. The physical in-store
variables and influence of social factors affect the perception of customers by selective retention,
distortion and retention of information (Kotler, 1974; Bitner, 1990, 1992; Shermanet al.,1997). A
 9

conceptual model based on the stimulus-organism-response paradigm was used to study the store
environment(S), individual’s emotional state(O) and approach-avoidance behaviour(R). This
theory stated that the interaction of these aspects had an impact on pleasure, arousal and
dominance. Arousal of an environment is defined as the degree of novelty and complexity
(Mehrabian and Russell, 1974). Another theory was used to explain the relationship between store
stimulus and consumer affective response (Babin and Darden (1995)). Both these theories did not
take product type and its symbolic perception into serious consideration. (Law, D., Wong, C., &
Yip, J. (2012)).
The primary purpose of this study is to have an in-depth understanding of the various strategies
adopted by the retail stores to promote products and increase its sale. The secondary purpose is to
understand the consumer buying decision pattern in a retail store and what factors in the store
actually trigger the young consumers to buy the products through experimentation where
customers would be subject to different treatments on background music and product placement.

2. REVIEW OF THE LITERATURE

2.1 Visual Merchandising

An important element of retail brand development is the physical store which includes
merchandising, in-store promotion and issues related to location, environment and atmosphere.
The critical aspects of retail image and interior display types help to identify the potential
connection between retail branding and display and development of a retail brand (Davies & Ward,
2005, P.507).
(Marie, (2011)) The development of new stores in the 1970s drew attention towards the need to
consider the store environment for a better and attractive shopping experience. During 1980-1990,
store design was used as a powerful weapon to achieve image differentiation. With the new
technology coming into the picture in the 1840s, the art of window display reached a higher level.
The first department store of the world was opened in 1852 by Aristide Boucicault. He wanted to
design the shop in a way that attracts a huge crowd. In the 1960s, Mary Quant introduced window
displays by showcasing her collection to promote social trends. With the development of
technology and entry of Gucci and Prada into the market, window displays were replaced by
propaganda machines. The mannequins were replaced by large size glossy-print photographs of
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super-models. Fashion shows were shown on high-tech screens and efficient use of lighting
enhanced the visual appeal of the products (Bastow-Shoop, H. et al., 1991).

Fast-fashion brands have filled their stores with a variety of products and facilities to optimize the
limited space (Bruce and Daly, 2006; Ghemawatet al., 2003). Visual complexity can be defined
as the amount of detail and intricacy in a visual stimulus (Snodgrass and Vanderwart, 1980). It
influences the elements that are linked with the evaluation of a stimuli like an observer's interest
and information processing (Berlyne, 1971; Eisenman, 1966). Visual complexity also affects the
response of a customer to advertisements, packaging designs and website designs (Pieterset al.,
2010, Orth and Crouch, 2014, Deng and Poole, 2012; Tuchet al., 2009). In the store environment,
visual complexity is characterized by the walls and ceilings, floor design, furniture installations
and diversity and quantity of the products available (Gilboa and Rafaeli, 2003; Orth and Wirtz,
2014). According to Gilboa and Rafaeli (2003), there exists an inverted U-shape relationship
between visual complexity and customer’s approach towards buying behavior in a grocery store
setting. In comparison to other stores, fashion stores tend to focus more on the store layout and
implement an innovative store environment which includes colorful merchandise and interior
design, and appropriate furniture with a planned motive (Morgan, 2011). Visual complexity has
also shown a negative impact on the customer’ approach towards the store. Studies have shown
that visual complexity hinders the effectiveness of advertisements in terms of the attitude towards
the advertisement, towards the brand and purchase intention (Stevensonet al., 2000).(Jang, J. Y.,
Baek, E., & Choo, H. J. (2018))
There is an analogy between the design of online websites and retail store layout. In-store retailers
plan the layout of the store in a way that facilitates easy access to products for customers while
retail websites intend to provide what customers want through appropriate search engines and site
maps (Then & DeLong, 1999). Customers are attracted towards a store because of the music and
innovative merchandise presentation of the store while creative colorful images and product videos
may attract customers in the online website. A website may include music, sales promotion and
other ads and thus influence the customer to revisit the website again and again (Rice, 1997).
Visual merchandising is all about creating a unique shopping experience with respect to a retail
store while in case of the online website, brands can include more visual product information, close
up view of the products and colorful fonts with appropriate infographics. Online apparel websites
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can offer various color combinations and mix-and-match options which allows the customers to
create a complete look in turn increasing the purchase intent (Then & DeLong, 1999). The
mannequin display method is the best way to depict how the products will appear in an online
setting.
(Ha, Y., Kwon, W. S., & Lennon, S. J. (2007))
Online store design may have a positive or negative impact on the customer’s belief, purchase
intention and behaviors (Wuet al., 2014). The online store environment involves many elements
like website appearance, merchandise, presentation and navigation (Kimet al., 2009). The extent
of effectiveness of the information content in the website has a considerable influence on online
satisfaction and the customer’s purchase intent (Singhet al., 2016; Liuet al., 2017). For a premium
visual presentation, retailers use technologies like 2D or 3D pictures of the merchandise, videos
and verbal description of the merchandise and its attributes (Flavianet al., 2017). E-retailers
continuously work towards developing new strategies to improvise the visual display of products
on the web store (Parket al., 2009).(Wu, J., Kim, A., & Koo, J. (2015))

2.2 Music in retail

An intriguing amalgamation of music and retail shops has no less value than many other salient
features that have been implemented over the years in the retail sectors. The background music
helps to enhance the shopping environment by influencing the customer’s perception more
constructive; customers tend to exhibit a marginally higher level of interest in the product, and that
eventually leads to impulse buying; helps in building an illusion that the customer engagement has
refined than that of no music shopping experience (Mattila & Wirtz, 2001). The music number
that is to be played in the store has a meaningful impact on the customer’s attitude towards the
shop and the product. If the customer is familiar with the number that is played background, it
influences her positively. Music with slower Tempo and lower music will move the customers to
a moment of ecstasy that results well in the buying pattern and time consumed. In contrast, the
music with higher volume and the Tempo results the opposite (Garlin & Owen, 2006). Next comes
the music placement. A retail store should maintain several playlists and switch among them over
time. Not only at weekends and weekdays but also at the time of day, the playlist needs to be
changed. Shifting our focus to the music genre, people tend to perceive value higher than usual
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when a classical number is played. If at all country music and western genres are played, people
have their perceived value lower than the previous case (Yalch & Spangenberg, 1990). Retailers
strongly believe that time spent at the shop and the amount of purchase is directly proportional.
Hence over time, they always found a way to keep the customers for long hours, and one among
them is music. That too soft music contributes much more than any other genre to achieve the
retailer’s intention; consumers spent 38% more time in the store when exposed to slow and soft
numbers than the fast beat. If we subcategorize the music played in the store into foreground and
background, it contrasts outputs concerning the shopper’s age. Youngsters like to spend more time
if the music is played in the background, whereas aged people prefer foreground music to be in
the store for a long time (Yalch & Spangenberg, 2000). Brand music is an integral part of the type
of music played in the store. If an aisle is filled with a single brand’s product and the theme music
of the brand is played, it acts as the reinforcement factor of the customer’s prior experience with
that brand. Similarly, if the music is pleasant, it initiates the customers to buy the product for the
first time and creates brand richness in the customer’s cognitive minds. It creates a robust
customer-brand relationship (Beverland, Lim, Morrison & Terziovski, 2006).

2.3 Time & Money Spent Relationship

This examination tends to a major, however disregarded part of customer shopping conduct, buyer
utilization of time for shopping. The outcomes showed that markers identifying supply needs of
customers were less significant than non-monetary pointers in clarifying varieties in time spent on
shopping. Based on earlier examination, we recognize two distinct classes of directions to
shopping reflecting contrasts in asset allotment in the household. (Garretson and Mauser, 1963)
The top of the line, Supply-need direction is basically a monetary direction. As per this direction,
Time spent on shopping is accepted to fluctuate with the need of supply from retailers. On account
of the information impediments, we have no immediate proportion of this need. (Arndt, 1976)

Time spent on shopping is expected to vary with Number of children in the family Stage in the
family life cycle, and Total household income. Since total supply need varies negatively with
private production of food in the household, average shopping time was expected to be less in
areas dominated by agriculture or fishing occupations. (Arndt, 1976).
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From the literature, it was expected that non-economic indicators would be more important
predictors of shopping behavior. Possession of strategic durables such as refrigerators and freezers
were believed to be facilitating conditions making for more efficient and shorter shopping time.
(Arndt, 1976).

Opportunities to shop were accepted to be more positive if the respondent's wellbeing was
acceptable , if the respondent was not utilized, or the respondent worked for less hours whenever
utilized . In the event that the respondent's companion was utilized , the respondent's own
individual shopping time was relied upon to be longer(Szalai, 1972). Schooling for one or the other
respondent or life partner was required to be corresponded with a fairly more significant level of
aspiration for shopping and consequently to be decidedly related with shopping time. At last, the
normal association of the family work with the spouse as the buying specialist having the primary
duty regarding supplies, was required to be shown in longer shopping time for ladies than for men.
Darden and Reynolds (1971)

The trend was validated yet again in a recent First Insight Report which found that 71 percent of
all shoppers surveyed spent $50 or more when shopping in-store. This compares to only 54 percent
of respondents spending more than $50 when shopping online. Sentral byers (1974, 1975) Feeling
assumes a part in shopping conduct. There is a human side of in-store shopping and customers
need that instinctive experience. As indicated by a review from Clicktale, 40% of customers use
'retail treatment' as an approach to quiet down, while 74% said they have "stress-shopped" before.
An examination from the Journal of Consumer Psychology expresses the advantages of retail
treatment Making purchase decisions reduces residual sadness. (Szalai, 1972 and Jacoby, Szybillo,
and Berning, 1976)

2.4 Sensory Retail

According to (Tul lman, 2004) in his article 'Re vitalizing Visual Merchandising' He claims
that just visuals or window displays are insufficient to attract buyers. Since knowledge gathered
through all five senses remains in the head further and can be remembered over prolonged periods
of time, a visual Merchandiser must operate on all five senses. Only visuals can induce an
overabundance of one meaning and, as a result, further, lead to the disinterest of the viewer. A
retailer may engage a potential buyer for a more extended period of time by using more of their
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senses, and he or she will be able to effectively express his or her concept or product. Also in the
article 'Art and Science of Visual Merchandising by (Singh, 2008) gave results of his survey and
concluded that all the key elements of visual merchandising including Displays, store layout,
interior and exterior design of the store, music that is being played in the store, lighting of the store
all these key elements help in building up an outstanding experience to the customers through his
senses, thus would ultimately lead to customer loyalty and satisfaction and also most importantly
brand recalling, hence Visual Merchandising helps in boosting sales of the store. According to
(Smitha, 2011) in her article 'Colorful Influence' She explained that the use of color within or
outside the store helps to create a distinct brand identity. It assists in the development of a long-
lasting memory in the viewer's head. It has the potential to direct eye movement and increase
mood. Hence the customer would feel like going into the store and exploring the various products
displayed in the store, thus creating a huge increase in sales. Although audio and visual cues have
long been used in marketing to communicate with consumers, sensory marketing focuses on using
the five senses to affect consumer behaviour. The use of 5 senses like Use of Visual cues, Use of
Audio cues, use of fragrances and Use of Touch Tactile Marketing all these techniques actually
make a huge impact on the sales of the various products in the retail store and most importantly
will have a positive impact on customers. (Prof Anumeha, 2016)

2.5 Retail Communication

Retail communication ensures that the customer receives the correct message. The customers are
informed about the retailers, the merchandise and services through appropriate retail
communication. There are four characteristics to be kept in mind before selecting the correct
communication tool for delivering marketing communication messages to the end-customers. The
four characteristics are communication potential, credibility, cost and control. Retail
communication helps in achieving a number of objectives including building brand image,
boosting sales, increasing store traffic, providing necessary information about the retailers like the
location and offerings and the special activities conducted by the retailers. The retail
communication mix has few elements which have been effective in increasing the attention of the
customers namely telemarketing, mobile marketing, direct mail and catalogues. Retailers use a
four-step process to design their communication program. The steps include establishing
objectives, determining a budget, allocation of the budget and implementing and evaluating the
 15

program (Fill, 2009). Social media has various methods of online communication like social
networking, sponsored blogs, multimedia sites, company websites and podcasts (Chung and
Austria, 2010). The Internet serves as a platform which helps to connect with the prospective
customers by providing various sources of information to the customers regarding the commercial
offerings and thus contributes in effective retail communication (Hoffman, 2004). The rapid
growth of online communication through the various social media sites have enhanced the effect
of word-of-mouth marketing (Hennig-Thurau et al., 2004; Brown et al., 2007; Cheung and
Thadani, 2012; Hussain et al.,2017; Yang, 2017). (Nair, G.S. S. 2018)

Retail communication means all the instruments and measures used to convey a company’s
characteristics to the external and internal target groups and to initiate an interaction between the
company and the target group (Bruhn, 2005). Communication helps avoid the misconceptions
regarding the product in the minds of the customers (Mattmuller, 2006). Bruhn (2005) feels that
dialog marketing and relationship marketing will be the future of retail communication. There are
three important tasks of communication namely information, initiation of dialog and image
building (Oehme, 2001). The impact of communication can be classified into three psychological
categories: Cognitive, Affective and Conative (Bruhn, 2004). The cognitive impact measures the
perception of communication measures, the change in brand awareness and knowledge about the
brand characteristics. The affective impact addresses the customers in an emotional way and thus
customers develop interest in the brand or product. The conative impact causes a change in the
behavior of the customers. There are various communication instruments like media advertising,
online and offline direct marketing, sales promotion, public relations, sponsoring, event marketing,
online marketing and user-generated content (Bruhn, 2005; Braun, 2006; Meffert, 2000).
(Schirmer, L. (2007))

3. RESEARCH GAP
Through the review of literature, the researchers were able to identify the following research gaps:
● Keeping the cross-cultural perspective in mind, no studies have been conducted to
understand the relationship between music and shopping in the Indian Market, to expand
further on this, not many studies have been conducted to understand the consumers
responses towards background music as a visual merchandising strategy and how they
would be different in terms of different demographic variables.
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● No studies have focused on the relationship between music and shopping in a closed
community-based retail store.
● Store environment and location will play an essential role in building store patronage,
ultimately leading to purchase. But no study has been conducted to identify the impact of
these two critical factors on consumers' buying decisions.
Using these research gaps , the researchers had decided to investigate the following research
questions, objectives and hypotheses.

4. RESEARCH QUESTIONS, OBJECTIVES AND HYPOTHESES

4.1 Research questions

1. What is the relationship between playing background music and time spent in retail stores
on the basis of gender?
2. What is the relationship between the amount of time spent in the store by consumers and
the money they spend in the retail store?
4.2 Research Objectives
1. To identify the effect of playing background music on gender in the retail store.
2. To examine the impact of background music on the time spent by consumers in the retail
store
4.3 Hypotheses
Hypothesis 1:
Null hypothesis: There is no significant relationship between playing background music and time
spent on the basis of gender.

Alternate hypothesis: There is a significant relationship between playing background music and
time spent on the basis of gender.

Hypothesis 2

Null Hypothesis: If there is no relationship between background music and time spent in the store,
further there is no relationship between time spent and money spent in the store
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Alternative Hypothesis: If there is a relationship between background music and time spent in the
retail store, then further there is a relationship between the time spent and money spent in the store.

4.4 Conceptual Framework

Figure 1: Conceptual model of the relationship

5. RESEARCH METHODOLOGY

5.1 Sampling

The sampling technique used for this study is Simple random sampling. It is the type of probability
sampling in which the researchers will randomly select the participants who belong to the subset
of the population. Regarding the fieldwork, we had to collect the data from a closed community
retail store twice. During the first data collection, the data wasn't ideal or accurate as per the
requirement because we did not consider the time and money spent by the customers. Later, the
 18

second data collection went according to our requirement but had to face many difficulties during
the process, like the traveling time taken to reach Hennur, getting the permission of the closed
community retail store, and mainly the attitude of the various customers.

5.2 Instrumentation and Data Collection

This study follows Experimental Research Design. This is an applied research as this study focuses
on solving real world problems in the retail sector to help firms understand the best strategy to
attract customers towards their product, in marketing research terms, this is problem-solving
research. When problem solving research is further classified, this study is a part of promotion
research as this is a study that helps in the development and evaluation of advertising campaigns
used by the retailers. As the researchers are trying to identify the ideal background music and
whether changing the product presentations frequently will increase customer’s attention towards
the product, this is a promotional optimal mix.

Primary data will be collected through the experiment conducted by the researchers, through
observation, videography to capture time spent by each customer inside the store. The researchers
have reviewed scholarly journals, magazines, books for deeper understanding of concepts,
newspapers & websites to gain new ideas, personal sources from retailers to acquire their sales
data. Hence these resources enabled the researchers to gain an in-depth understanding of retail
store designs and promotions, and trends in the industry. Literature reviews of scholarly journals,
models proposed by published researches enabled the researchers to derive the purpose of study
and a conceptual model.

In this study the researchers want to inculcate both a quantitative and qualitative methodology to
understand consumer behavior through statistical modelling and measurements which is numerical
in nature as well as through observations and non-numerical data collection. To do this the
researchers will be using the following instrumentation:

● Experiments - The researchers will be conducting an experiment with regards to

background music where the researchers will be going to a retail store and observe sales
performance by alternating between playing music for an hour and then no music for
another hour, they identify the number of customers being enticed to buy triggered by
 19

music, and the gender that is being attracted to the music and to understand whether the
sales is better with music or without music.
● Ethnography - The researchers will study the customers in retail stores focusing on the
retail stores over a period of time to collect primarily observational data. This process is
flexible and tends to evolve as the research progresses and the realities of the field become
more evident.
5.3 Measurement

Dependent variables Description Independent Description

variables

Wallet share On an average how Background music No music, with music

much the consumer is
willing to spend in
retail store

Time spent Minutes or Hours a Gender Demographic

consumer stays inside variable
the store

Day of the week Which day of the

week the experiment
is conducted on

Table 1 Independent and dependent variables used in the study

5.4 Experimental Study

We conducted the study on Monday and Tuesday during weekdays and Saturday and Sunday
during weekends in the last week of March, 2021. We conducted the study once a day. The timings
for the study with music and without music are mentioned in the below schedule.
 20

Figure 2 : Schedule for the Experimental Study

5.5 Statistical Tools

Paired sample T-test- The paired sample t-test also known as dependent sample t-test is a
statistical tool used to determine whether there is statistical evidence that the mean difference
between two sets of observations is different from zero. In this test, each observation is measured
twice which results in a pair of observations. The paired sample t-test has two hypotheses; the null
hypothesis and the alternative hypothesis. The null hypothesis assumes that the mean difference
between the paired samples is zero. Under null hypothesis, all the observable differences are
explained by random variation. The alternative hypothesis is the one that assumes that the true
mean difference between the paired samples is not equal to zero. This hypothesis can take several
forms depending on the expected outcome.

The paired sample t-test has four assumptions:

● The dependent variable must be continuous (Interval/ratio)

● The observations should be independent of each other
● The dependent variable should be normally distributed
● The dependent variable should not have any outliers

There are two types of significance to be considered while interpreting the results of a paired
sample t-test :
 21

● Statistical significance- This is determined by looking at the p-value. The p-value gives
the probability of observing the tests under the null hypothesis.
● Practical significance- This depends on the subject matter. In most of the cases, practical
significance is important in order to draw meaningful conclusions. (Statistics Solutions)

Independent sample T-test- Independent sample t-test, also known as two sample t-test is a
statistical test to determine whether there is a significant difference between the means in two
unrelated groups. This test compares two independent groups on a single characteristic. In this
case, the null hypothesis is assumed to be that the population means from the two unrelated groups
are equal while the alternative hypothesis is assumed to be that the population means are not equal.
For an independent sample t-test, an independent, categorical variable that has two levels and one
continuous variable is required.

Assumptions for the independent sample t-test are:

● The dependent variable should be normally distributed within each group

● The variances of the two groups are equal in the population
● There should be no outliers
● The homogeneity of variances should be there
● The observations must be independent of each other
● The dependent variable must be measured in a continuous scale

While reporting the result of this test, we need to include t-statistic value, the degrees of freedom
and the significance value of the test (Laerd Statistics).

6. ANALYSIS & INTERPRETATION

6.1 Frequency Table of Demographic Profiling of Gender in the Experiment

A frequency distribution table displays the frequency of the various outcomes of a sample. This
table consists of the count of occurrences of values within a particular group or interval.
 22

Source: IBM SPSS Version 25

Figure 3 : Frequency table for gender

Source: IBM SPSS Version 25

Graph 1: Gender in relation to music Graph 2: Gender in relation to no music

When music was being in the store, among the customers who entered the store, 70% were males
and 30% were females. And when music was not being played, among the customers, 63% were
males and 37% were females.
 23

6.2 Paired samples tests and Independent sample test

Saturday

Source: IBM SPSS Version 25

Figure 4: Paired sample statistics and correlation for Saturday

Source: IBM SPSS Version 25

Figure 5: Paired sample test for Saturday

 24

Source: IBM SPSS Version 25

Figure 6: Group statistics for no music for Saturday

Source: IBM SPSS Version 25

Figure 7: Independent sample Test for no music on Saturday

Source: IBM SPSS Version 25

Figure 8: Group statistics for music on Saturday

 25

Source: IBM SPSS Version 25

Figure 9: Independent sample Test for music on Saturday

The Paired Sample Test indicates that music has no influence on both the duration of time being
spent by the customer in the store (p=0.233) and on the amount of money spent (p=0.369).

When music is not being played, The Levene’s Test for Equality of variances shows that Equal
variance is assumed for the time spent (p=0.962) by males and females; and amount spent
(p=0.273). When music is not being played, the T-test for equality of means indicates that, at 5%
significance level, there is a significant difference (p=0.046) in the time spent by males and time
spent by females. However, there is no significant difference (p=0.918) in the amount spent by
males and amount spent by females.

When music is being played, The Levene’s Test for Equality of variances shows that Equal
variance is assumed for the time spent (p=0.852) by males and females; and amount spent
(p=0.870). When music is being played, the T-test for equality of means indicates that, at 5% there
is no significant difference (p=0.917) in the time spent by males and time spent by females; and
there is no significant difference (p=0.501) in the amount spent by males and amount spent by
females.

Sunday
 26

Source: IBM SPSS Version 25

Figure 10: Paired sample correlation for Sunday

Source: IBM SPSS Version 25

Figure 11: Paired sample Test for Sunday

Source: IBM SPSS Version 25

Figure 12: Group Statistics for no music on Sunday

Source: IBM SPSS Version 25

Figure 13: Independent sample Test of no music on Sunday

 27

Source: IBM SPSS Version 25

Figure 14: Group Statistics for Music on Sunday

Source: IBM SPSS Version 25

Figure 15: Independent Sample Test for Music on Sunday

The Paired Sample Test indicates that music has no influence on both the duration of time being
spent by the customer in the store (p=0.361) and on the amount of money spent (p=0.647).

When music is not being played, The Levene’s Test for Equality of variances shows that Equal
variance is assumed for the time spent; and amount spent by males and females. When music is
not being played, the T-test for equality of means indicates that, at 5% significance level, there is
no significant difference (p=0.874) in the time spent by males and time spent by females; and there
is no significant difference (p=0.341) in the amount spent by males and amount spent by females.

When music is being played, The Levene’s Test for Equality of variances shows that Equal
variance is assumed for the time spent (p=0.097) by males and females; and amount spent
(p=0.762). When music is being played, the T-test for equality of means indicates that, at 5%
significance level there is no significant difference (p=0.329) in the time spent by males and time
 28

spent by females; and there is no significant difference (p=0.771) in the amount spent by males
and amount spent by females.

Monday

Source: IBM SPSS Version 25

Figure 16: Paired sample correlation for Monday

Source: IBM SPSS Version 25

Figure 17: Paired sample Test for Monday

Source: IBM SPSS Version 25

Figure 18: Group statistics for gender with no music on Monday

 29

Source: IBM SPSS Version 25

Figure 19: Independent sample Test for no music on Monday

Source: IBM SPSS Version 25

Figure 20: Group statistics for gender with music on Monday

Source: IBM SPSS Version 25

Figure 21: Independent sample Test with music on Monday

The Paired Sample Test indicates that music has no influence on both the duration of time being
spent by the customer in the store (p=0.871) and on the amount of money spent (p=0.307).

When music is not being played, The Levene’s Test for Equality of variances shows that Equal
variance is assumed for the time spent (p=0.131) by males and females; and amount spent
(p=0.286). When music is not being played, the T-test for equality of means indicates that, at 5%
significance level, there is no significant difference (p=0.245) in the time spent by males and time
spent by females; and there is no significant difference (p=0.215) in the amount spent by males
and amount spent by females.
 30

When music is being played, The Levene’s Test for Equality of variances shows that Equal
variance is assumed for the time spent; and amount spent by males and females. When music is
being played, the T-test for equality of means indicates that, at 5% significance level. level there
is no significant difference (p=0.953) in the time spent by males and time spent by females; and
there is no significant difference (p=0.537) in the amount spent by males and amount spent by
females.

Tuesday

Source: IBM SPSS Version 25

Figure 22: Paired sample Test for Tuesday

Source: IBM SPSS Version 25

Figure 23: Group statistics for gender with no music on Tuesday

Source: IBM SPSS Version 25

Figure 24: Independent sample Test for no music on Tuesday

 31

Source: IBM SPSS Version 25

Figure 25: Group statistics for gender with music on Tuesday

Source: IBM SPSS Version 25

Figure 26: Independent sample Test for music on Tuesday

The Paired Sample Test indicates that music has no influence on both the duration of time being
spent by the customer in the store (p=0.851) and on the amount of money spent (p=0.963).

When music is not being played, The Levene’s Test for Equality of variances shows that Equal
variance is assumed for the time spent; and amount spent by males and females. When music is
not being played, the T-test for equality of means indicates that, at 5% significance level, there is
no significant difference (p=0.912) in the time spent by males and time spent by females; and there
is no significant difference (p=0.471) in the amount spent by males and amount spent by females.

When music is being played, The Levene’s Test for Equality of variances shows that Equal
variance is assumed for the time spent; and amount spent by males and females. When music is
being played, the T-test for equality of means indicates that, at 5% significance level, there is a
significant difference (p=0.017) in the time spent by males and time spent by females. However,
 32

there is no significant difference (p=0.053) in the amount spent by males and amount spent by
females.

Overall combined Results

Source: IBM SPSS Version 25

Figure 27: Paired sample correlation for the entire dataset

Source: IBM SPSS Version 25

Figure 28: Paired sample Test for the entire dataset

Source: IBM SPSS Version 25

Figure 29: Group statistics for gender with no music and amount spent for the entire dataset
 33

Source: IBM SPSS Version 25

Figure 30: Independent sample Test for no music for the entire dataset

Source: IBM SPSS Version 25

Figure 31: Group statistics for gender with music for the entire dataset

Source: IBM SPSS Version 25

Figure 32: Independent sample Test for music for the entire dataset
The Paired Sample Test indicates that music has no influence on both the duration of time being
spent by the customer in the store (p=0.183) and on the amount of money spent (p=0.190).

When music is not being played, The Levene’s Test for Equality of variances shows that Equal
variance is assumed for the time spent (p=0.406) by males and females; and amount spent
(p=0.887). When music is not being played, the T-test for equality of means indicates that, at 5%
significance level, there is a significant difference (p=0.040) in the time spent by males and time
 34

spent by females. However, there is no significant difference (p=0.781) in the amount spent by
males and amount spent by females.

When music is being played, The Levene’s Test for Equality of variances shows that Equal
variance is assumed for the time spent (p=0.526) by males and females; and amount spent
(p=0.227). When music is being played, the T-test for equality of means indicates that, at 5%
significance level, there is no significant difference (p=0.656) in the time spent by males and time
spent by females; and there is no significant difference (p=0.540) in the amount spent by males
and amount spent by females.

7. FINDINGS AND RESULTS

 35

Figure 33: Integrated Model based on analysis

● Previous literature suggests that music has a significant impact on the consumer behavior
in store. However, this study found that in case of retail stores located in closed community
settings, playing background music does not influence the duration of time spent. Hence,
music does not trigger the customers to stay longer in the store. Similarly, the amount of
money spent by the customers is not influenced by the music.
● Through this study we were able to identify that irrespective of gender and music people
tend to spend more time at the shop on weekends in comparison to weekdays.
● More customers tend to visit the supermarket when the music is played on weekends in
comparison to weekdays.
8. CONCLUSION

Visual merchandising is an effective way of visually communicating with the customers. It is a

vital technique where marketers find new and innovative ways to grab the attention of customers.
Visual merchandising in a retail store setting influences the shopping experience of the customers
by focusing on impacting their buying decision at the subconscious level depending upon their
gender, personal preferences and the extent to which the product displays are relevant to the
customers. This research paper contributed to visual merchandising and effectiveness of
Background music in a closed community setting retail store. Thus, the study provides the
researchers with the current strategies implemented by the retail stores and allows the researchers
to pitch in innovative strategies for the future growth of retail stores. This research paper has
provided a better understanding and insight on how to design a retail store in order to attract
customers belonging to the closed community. It has brought to our notice/ attention that retail
stores that operate inside closed communities need not invest in background music, rather they
should focus on providing discounts or other methods to keep them customers engaged and loyal
to this retail store rather than retail stores that are outside the premises. There can be various
reasons for such behavior exhibited by consumers such as the store being located very close to
their homes, and the products available in the store are only daily necessities which can be bought
any time. Hence, customers frequently visit the store, and probably do not pay any attention to
whether any music is being played in the store.
 36

9. MARKETING RECOMMENDATIONS

1. The retail store owners should decrease any budget allocation that they have towards music
in their retail stores and should work on implementing regular sales campaigns displayed
across the store’s floor which will in turn increase the productivity and sales of the business.
2. As the store is already established, it should make use of the assets that it currently
possesses in terms of the infrastructure and capital invested in the store and should not
invest further in visual merchandising tools such as music tracks and equipment as they
prove to show no improvement in the customers time spent or wallet share. Use with the
store assets you already have.
3. Leverage social media to increase customer footfall. Make the people like the products and
store. etc., by constantly posting offers on every social media platform. Personal
engagement in closed communities like WhatsApp advertising can also pay off increased
revenue.
4. Market the business through key partnerships.
5. Since the customers know about the store and have some degree of trust, the business
should focus on fostering relationships which would lead to brand loyalty and to do this
the first step that they must take is collect the customers email addresses and provide them
with timely offers
6. Start a referral campaign or Loyalty Program
7. Providing free samples, giving promotional discounts and increasing the customer
engagement by leveraging the understanding of the customers the store has when it is
located in a closed community.

10.METHODOLOGICAL LIMITATIONS

Limitations arise due to external and uncontrollable factors such as the location of the retail stores
and the consumer behavior of the individuals located in various localities of Bangalore. Consumers
are extremely demanding and are easily influenced by the number of opinions they come across
their day-to-day life which makes consumer behavior capricious and exhibit rapid changes in their
behavior, thus making the study irrelevant after a while.
 37

10.1 Limitations of Paired Sample t-test

● If we do not have a random sample, the significance levels can be incorrect

● Sample sizes range from small to large
● In case we have discrete data with at least five unique values, we can ignore the continuous
variable assumption.

10.2 Limitations of Independent Sample t-test

● Carry-over Effects- When we rely on paired sample t-test, repeated measures cause
problems which leads to carry-over effects.
● Environmental Impact- The independent t-test does not have control over the effects of
the environment on the output of the test.
● Multiple Comparisons- The t-test cannot be used for multiple comparisons as it results
type I error. When we conduct a t-test among several samples, it becomes difficult to reject
the null hypothesis.
● Loss of degrees of freedom- When the degrees of freedom of a test become lower, we
need to have a higher t-value to reach the test significance level and this creates a tradeoff
between the greater power leading to lower degrees of freedom.
● Reliability of data- If the assumptions of the t-test are violated, then the output of the test
is unreliable.

11. FURTHER SCOPE FOR RESEARCH

Further scope of research would be in terms of the same study being conducted in different
localities of Bangalore to understand the buying behavior of consumers in Bangalore as a whole.
Researchers could also conduct the experiment for a whole month or year to understand the trends
of consumer behavior when it comes to the influence that background music may have on them.
The retention of customers can be identified through monitoring the customers who come during
the time music is played and those who come when no music is played, a difference in their
shopping behavior can be monitored if there is a change in the timings of their shopping once they
have been exposed to music.
 38

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Appendix 1 - Data Collected

44
 45

Appendix 2: Saturday (Variable View) Saturday (Data View)

Appendix 3: Sunday (Variable View) Sunday (Data View)

Appendix 4: Monday (Variable View) Monday (Data View)

 46

Appendix 5: Tuesday (Variable View) Tuesday (Data View)

Appendix 6: Overall Dataset (Variable View) Overall Dataset (Data View)