*The Power of In-store Music and its Influence on International Retail

Brands and Shopper Behaviour: A Multi-Case Study Approach Michael Morrison

Department of Marketing

Monash University

Australia

The Power of In-store Music and its Influence on International Retail

Brands and Shopper Behaviour: A Multi-Case Study Approach

ABSTRACT

Retailers are finding it more and more difficult to differentiate their stores based

upon the traditional components of the retail mix. Retail store elements such as colour,

lighting and visual merchandising have always been considered as having immediate effects

on the buying decision making process. Retail stores need to be much more than just

passive places that display merchandise for sale. One of the key challenges for retailers is to

constantly add value to their brand. Can this be achieved by adding new and innovative

elements to their existing retail marketing mix? The emphasis has moved away from in-

store product displays, towards elements that excite the senses of shoppers. Elements such

as flat screen videos, graphics, music, aromas, lighting and flooring tend to capture the

brand image or personality and help to create a unique atmosphere and shopping

experience. The use of strategically selected in-store music is thought to create an

immediate distinction for a retail brand. The purpose of this research is to further investigate

the role of in-store music plays in shaping retail brands. The methodology includes face-to-

face interviews with store associates, retail specialists and selected shoppers and

observation in specific retail outlets in the USA. Key findings indicate that it would seem

that in-store music may play an important role in the purchase decision-making process and

can influence store stay time and brand recognition.

Key Words: The Power of Music, Retail Brands, Shopping Experience,

Differentiation

The Power of In-store Music and its Influence on International Retail

Brands and Shopper Behaviour: A Multi-Case Study Approach Michael Morrison

Director International Marketing Study Program

Department of Marketing

Monash University

Victoria

Australia

April 2002

INTRODUCTION

Creating the Wow! factor in the retail environment is becoming more and more

difficult. Retailers are facing an increasingly competitive market and can no longer

differentiate their stores only on the basis of product, place, people, price and promotion.

There is a move towards the concept of „retailtainment.‟ This phenomenon, which brings

together retailing, entertainment, music and leisure, has seen the emergence of concept

stores like Nike Town, REI, Bass Pro and theme restaurants such as Rainforest Café, The

American Wilderness Café and Bubba Gump. Retailers need to look further than the

traditional retail store elements such as colour, lighting and visual merchandising to

influence buying decisions. In-store music may influence the behaviour of shoppers and can

increase the chances that a purchase will be made (Bruner, 1990).

Retail interior designers use atmospheric influencers to engineer shopper moods and

emotions. Designers create in-store micro-climates that can excite the five senses and that

can influence shopper behaviour. When deciding to purchase, shoppers may respond to

more than just the product and services being offered (Kotler, 1973). In-store music can be

an important component of store atmosphere and can play a key role in the purchase

decision-making process.

To determine the role that in-store music plays in shaping retail brands, an

exploratory study was conducted into various retail brands in the USA including

Abercrombie and Fitch, Borders Books, FAO Schwarz, Nike Town and Victoria‟s Secret.

The atmosphere of the shopping environment can influence customer attitudes and their

perceptions in relation to the overall quality of the store in terms of the uniqueness of the

product, and service levels (Baker, Grewal and Parasraman, 1994; Oakes, 2000) the

purchase price (Areni and Kim, 1993) and purchase volume (Milliman, 1982). The specific

atmosphere that the retailer creates, can in some cases be more influential in the decision

making process than the product itself. It is the power of in-store music that may in fact

have the greatest influence on the way people make their purchase decisions. According to

Gardner, (1985) mood states can have an important influence on shopper behaviour.

Specific mood states can increase the chances that a purchase will be made (Bruner, 1990)

and in-store music can be a critical element of a store‟s atmosphere (Alpert and Alpert,

1990).

THE SIGNIFICANCE OF RETAIL BRANDS

Kotler (1973) points out that consumers purchase a total product or

experience, consisting of not only the physical item but also the packaging, after sales

services, promotions, image and the atmosphere of the place where the transaction took

place. A successful brand aims to develop meaningful relationships with consumers (de

Chernatony and McDonald, 1998). Brand development and maintainence demands the

constant use of retailers‟ assets and energy to create unique entities that have a lasting

personality.

When a brand has a well defined personality, consumers interact with it and develop

a relationship that can influence individual attitudes and behaviours in terms of how

consumers perceive and react to a brand and how the brand behaves and reacts to

consumers (Blackston, 1992, in de Chernatony and McDonald, 1998).

Brand building is a combination of physical, functional, operational and

psychological elements. A successful retail brand will help to build long-term demand, add

some perceived value and ultimately improve sales. Consumers will be willing to pay more

for a brand if there is a perceived or actual added value from their experience of using the

product or service.

THE POWER OF MUSIC

Music can be a powerful emotional stimulant within a retail environment. Music can

be a valuable primary element in creating or enhancing the sensory experiences of shoppers

(Schmitt, 1999). Music serves as a powerful connection into our emotions. Music has the

ability to communicate directly with our hearts, minds and memory. According to Chebat,

Chebat and Vaillant (2001), what really matters in in-store music is its evocative power-

memories related to the music (p.121). Music is versatile, it can relax or excite. Music is

magical, it can take us to places we want to be. Music can influence shoppers from the

moment they step through the door. It can entertain, inspire and motivate. Music can have

an influence on potential sales by increasing stay time for both the active and passive

shopper and by slowing down the pace of travel throughout the store (Kellaris and Kent,

1992). The right music is thought to have the potential to increase sales opportunities,

define retail image and attract more customers.

A personalised music strategy can support a retail brand and may make a powerful

connection with specific target markets by incorporating customer demographics (such as

age, gender mix and income levels) and psychographics (such as preferences, lifestyles,

personalty and attitudes).

By understanding the demographics and psychographics of its target market,

retailers can create an audio environment where their customers feel comfortable, relaxed

and happy to spend time and therefore the potential to purchase more.

THE MUSIC PROVIDER

The in-store music provider for each of the retailers in this study is DMX Music.

Specially designed in-store music can create a unique retail ambience and energy level.

DMX Music (with worldwide operations in Australia, Belgium, France, Germany, Holland,

Japan, Latin America, New Zealand the United States and United Kingdom.) work closely

with retailers to create custom music programs („soundscapes‟) that reach, excite and

entertain shoppers. DMX provides retailers with lifestyle-based foreground music that

enhances the retail environment by providing the right energy and tempo at the right time in

the right place. The people at DMX Music have the talent, passion and energy to deliver

high performance music solutions. DMX bring together experts in all areas of music to

develop customised music solutions that make strategic links with specific target markets,

retail promotions, in-store activities and events and specific retail brands.

LITERATURE REVIEW

A review of the literature indicates that previous research has examined various

aspects of music and its influence on consumer behaviour. Milliman‟s study (1982) reported

increased purchase levels with slow tempo in-store music compared to fast tempo. Smith

and Curnow‟s study (1966) found that music volume could have an influence on store stay

time (see also Yalch and Spangenberg, 1990).

In-store music can be a critical component of store atmospherics (Baker, Levy and

Grewal, 1992; Milliman, 1982, 1986; Yalch and Spangenberg, 1990) and genre (Baker,

Levy and Grewal, 1992; Yalch and Spangenberg, 1990). In-store music can also play a role

in the purchase decision making process (Areni and Kim, 1993; Donavan and Rossiter,

1982; Smith and Curnow, 1966). Music is memorable, it can transport us in an instant to

places we want to be (Ortiz, 1997). Retailers can use specifically programmed in-store

music to create links to past experiences. Which in turn is thought to influence shopper

behaviour. A personalised music strategy can support a retail brand and can make a

powerful connection with specific target markets. Mattilia and Wirtz (2001) found that

improving the ambient conditions within a retail store can encourage shoppers to engage in

impulse buying.

The use of carefully selected in-store music can create an immediate distinction for

a retail brand by establishing the right mood and can influence perception of time (Kellaris

and Kent, 1992) and can influence store evaluation (Dube and Morin, 2001).

Music can motivate the subconscious and create a first and lasting impression. In-store

music can have an evocative power, with strong and definite links to emotions (Chabat, et

al., 2001).

THE PURPOSE OF THE STUDY/METHODOLOGY

The purpose of this research is to determine the role that music plays in

influencing specific retail brands. The study is exploratory in nature and forms the basis for

future research. Zikmond (1991) sees three purposes for exploratory research (i) situation

diagnosis, (ii) the screening alternatives and (iii) discovering new ideas (Zikmond, 1991:

103). This study was exploratory in that its aim was to provide greater insight and

understanding into the link between in-store music and retail branding. Exploratory research

can be conducted into a research problem or issue when there are very few or no earlier

studies. The aim of exploratory research is to search for patterns, ideas or hypotheses, rather

than testing or confirming a hypothesis (Hussey and Hussey, 1997). A total of 25 face-to-

face interviews were conducted in-store with sales associates and 8 face-to-face at Head

Office with store development, marketing and product management personnel. Informal

interviews were conducted with 22 shoppers in selected retail outlets. Face-to-Face

interviews were also carried out with Music Programmers and Account Executives at DMX

Music in Seattle.

The interview schedule included questions related to organisational culture

and brand positioning, target market and in-store music and its influence on store stay time,

perception of service and product quality and purchase intent. Extensive in-store

observation was carried out at the retail outlets of Abercrombie and Fitch, Borders Books,

FAO Schwarz, Nike Town, and Victoria Secret in Chicago, Dallas, Las Vegas and Los

Angeles.

KEY FINDINGS

Abercrombie and Fitch – Music Before Merchandise

Abercrombie and Fitch is a specialty retailer of casual, rugged, outdoor American

sportswear. The hip clothier is out to lure young customers, aged from 15 to 28 who are

looking for a unique look and lifestyle edge. The concept has been very successful because

the brand has been imaged very closely to express the American college lifestyle. The stores

are alive and full of action. At Abercrombie and Fitch, it‟s music first and merchandise

second.

The music at Abercrombie and Fitch is super charged, extremely powerful,

incredibly loud and full of energy. Loudness can suggest animation and proximity (Bruner,

1990). Specifically programmed soundscapes (based on the retailer‟s target market

demographic and psychographic) create unique mixes of music, offering the latest up tempo

hits, show how music can help to build and support a retail brand. Playing foreground music

can increase the rate of spending (Yalch and Spangenberg, 1990). The cool sounds of Pink,

The Space Brothers and Enigma, grab you as you walk by and is clearly targeted to their

niche market.

According to Randy Schlager, Music Programmer with DMX Music, (who has been

responsible for producing the unique sounds of Abercrombie and Fitch for over six years)

the specifically programmed music mix reflects the carefree attitude of the Abercrombie

brand. He said that “The A&F music is layback, fun, it‟s about good times and creates a

unique dance party upbeat environment within the store.”

During observation in-store, sales staff and shoppers were seen moving to the beat

of the music . Shop-floor interviews with sales associates and shoppers indicated that the in-

store music was an important factor in creating the right atmosphere for the Abercrombie

and Fitch brand. The faster the tempo, the more animation and happiness are expressed.

Songs in higher keys can be considered o be happier than songs in lower keys. (Bruner,

1990).

Borders Books –Store Stay Time

The focus at Borders Books is aimed at maximising the amount of time people stay

in the store. On entering a Borders Book store you immediately get the impression that you

are invited to relax, choose three or four books from the enormous list of titles on offer, sit

down and have a coffee or some food, take in some music and settle down and while away

the hours. The in-store music is designed to maximise customer visit time. Research has

shown that if shoppers stay longer and travel more slowly throughout the store, they are

likely to purchase more (Areni and Kim, 1993; Donavan and Rossiter, 1982; Milliman,

1982; Yalch and Spangenberg, 1990). The tempo of the music at Borders Books is slow and

relaxed. The tempo of the music tended to alter customer perception of elapsed time in the

store.

This finding supports Milliman‟s study (1982) that found that the tempo of music

can affect shoppers‟ pace of movement around the store. Shoppers and sales associates

indicated that the soothing nature of music also helped to facilitate discussions about

products and services (Dube, Chebat and Morris, 1995). Borders may encourage shoppers

to stay longer in-store by playing slow tempo music, in particular that of a classical genre.

FAO Schwarz – Zoning

Las Vegas is home to the world‟s largest toy store FAO Schwarz. With 57,000

square feet of „toy heaven,‟ the store is the number one attraction within the magnificent

Forum Shopping Mall. The store provides a showcase for all the major toy manufacturers.

The key departments such as the Mattel Barbie range and the dramatic Star Wars offering

are very closely monitored to ensure the best possible in-store concepts. Complete with a

gigantic three storey high Trojan horse, the store offers a shopping experience full of

colour, magic, movement and music.

The store is composed of specific themes, each with its own unique music; from

plush toys to electronic games, arts and crafts to magnificent dolls, an incredible Barbie

store and a very exciting Star Wars department that boasts the world‟s only Star Wars

Cantina - and of course a FAO Schweetz extravaganza offering an incredible array of candy

and chocolates.

Each area demonstrates the power of music in creating the right mood, excitement

and atmosphere. For example, the music playing in the Barbie section is up-tempo pop,

dance and swing, creating a feeling of fun, fantasy and happiness, whereas, the music in the

Star Wars department is awesome and dramatic - one can‟t help but be spellbound and

enthralled.

Whilst throughout the Schweetz extravaganza, songs like A Spoon of Sugar (from

Mary Poppins) or Sweets for my Sweet (The Searchers) set the scene. The Vice

President/General Manger believes that music drives customers into the store, He said that “

Music plays a big part in catching people‟s attention.” He also believed that playing the

right music had some influence on in-store traffic flow. In particular, with regard to

shoppers travelling from floor to floor and between specific departments. Given the nature

of Las Vegas and the focus on gambling, shopping becomes almost an afterthought and

retailers need to entice, excite and entertain shoppers.

Nike Town – Brand Recognition

Nike Town is a perfect example of an “entertainment retailer, which recognizes that

fulfilling the total retail experience can create happy and energised shoppers and can lead to

business success. When you enter Nike Town it is so much more than a shopping space.

The Nike Town shopper experiences aesthetics that reflect sports, power and movement

(Schmitt and Simonson, 1997: 282). Modern design has been one of the keys to creating the

Nike Town image. At Nike Town, shopping is no longer a mundane activity. Nike Town is

about total branding. As you enter the world of Nike you are submerged, confronted and

exposed to total branding.

The Nike brand is everywhere, giant sized posters, video screens, floor tiles and

even in the music. There is no mistaking that you are in Nike Town. „Nike-Music‟ is high

on energy, youthful, vibrant, proactive and inspiring. The Nike identity is tied to the retail

space through the continued use of the Swoosh logo, which is built into door handles and

stair case banisters (Schmitt and Simonson, 1997: 282).

The Facilities Manager at NikeTown, Chicago said that, “The current music

definitely boosts the store‟s environment and helps to attract the younger urban customer.”

He also believes that the current in-store music is friendlier, more inviting, gives Nike a

point of differentiation from its competitors and supports the Nike brand.

The interest shown in the in-store music has led to the need to provide customers with „Nike

Music‟ play lists.

Victoria's Secret – Perception of Service Quality

The music at Victoria's Secret creates an in-store ambience full of richness and

grandeur. Sales associates indicated that the baroque music contributed to store atmosphere

that has led to shopper perception of higher quality in both merchandise and service.

Sweeny and Wyber‟s (2002) research found that customers who liked the music being

played were more likely to be aroused and to rate highly the quality of service and

merchandise. The use of classical music can cause consumers to expect a higher level of

merchandise and service quality (see Oakes, 2000; Yalch and Spangenberg, 1990). At

Victoria‟s Secret, you can feel a sense of elegance and style. Wood panelling, grand

staircases, brocaded wallpaper, silks, satin and lace. The soothing nature of the music is

important in building customer relationships (Yalch and Spangenberg, 1990).

The analysis of interview data with sales associates indicated that the music was an

important factor in this process, particularly when engaging in conversations with shoppers

about potential purchases.

Soothing music can lead to better concentration and improved focus. Therefore,

music that facilitates discussion between individuals may be desirable where customers are

likely to seek the advice of a sales associate. This is certainly relevant when men decide to

enter what was once considered a strictly female only domain.

The study found that the in-store music at Victoria‟s Secret has a role to play in

influencing the total shopping experience and can be an important tool in creating retail

brand identity. Respondents (ie store staff and shoppers) indicated that the in-store music

did influence store stay time and brand recognition but had a lesser influence on product

and service quality.

Some retailers are extending their brands by offering shoppers the opportunity to

take the unique sounds home. They're taking the songs that play in their stores and selling

them in compact discs with the company logo. Victoria's Secret, with its best-selling

classical CDs, is the pace-setter.

KEY IN-STORE MUSIC INFLUENCES

Table 1 indicates similarities and differences between the selected retailers as they

relate to store-stay-time, recognition of brand, perception of service, soft music, loud music,

music zoning and in-store traffic flow.

At Abercrombie and Fitch (A&F) it is very clearly music before merchandise. The

use of loud in-store music influences store stay time, traffic flow and recognition of brand.

Shoppers at Borders Books (BB) are happy to spend time reading a book or magazine and

drinking a coffee.

The use of soft music (especially classical) at BB tended to influence both store-

stay-time and in-store traffic flow. Analysis of data did not indicate that shoppers‟

perception of service quality was influenced by the in-store music. Whilst at Victoria‟s

Secret (VS) the use of soft music (baroque classical) did influence the perception of service.

The study found that only FAO Scwartz (FAO) used in-store music to create specific

themes or zones within their store. This was an effective strategy and tended to prolong

store stay time and generated efficient and effective traffic flow. None of the other retailers

employed this music strategy. The store offers unique products in an unforgettable

environment. The store layout, design and music is designed to interact with shoppers in a

manner that distinguishes itself from other retailers.

Nike Town is an all-inclusive brand (Schmitt and Simonson, 1997). The in-store

music plays its role in reinforcing brand recognition. Wherever shoppers turn they are

reminded of the Nike brand. The development of the Nike urban beat reinforces brand

recognition and creates the Nike point of differentiation.

CONCLUSIONS/MANERGERIAL IMPLICATIONS

It may be possible for retailers can change the mood of their stores according to the

in-store music being played. Store image and mood can be changed by the introduction of

carefully selected in-store music. The right in-store music at the right time may create a

lasting impression and build retail brand awareness with existing and potential customers.

A personalised music strategy may support a retail brand and may make a

connection with specific target markets by incorporating customer demographics and

psychographics.

Music can be a key element of the retail mix that can drive shoppers towards

visiting a store and making a purchase. Professionally programmed in-store music can

provide retailers with a point of differentiation.

Retail store environments provide shoppers with informational cues about the

uniqueness of the merchandise and service quality and assist in shaping shopper attitudes

and perceptions about the global store image. When deciding to purchase, shoppers respond

to more than just the product and services being offered. Specifically programmed in-store

music can be an important component of store atmosphere and can play a role in store stay

time, the purchase decision-making process and brand recognition. The study provides

evidence that specifically programmed in-store music can improve a store‟s ambience. This

was evident within all the Victoria Secret stores visited.

Given the relatively narrow target market of Abercrombie and Fitch and a definite

in-store music strategy (ie music first, merchandise second) of using well known and

popular music, it was clear from the data collected from sales associates and shoppers how

important the in-store music mix was in terms of adding to the overall retail experience.

LIMITATIONS OF THE RESEARCE/FUTURE RESEARCH

There are a number of limitations with in-store music related research. They include

the collection and capture of meaningful data, isolating other environmental factors and

linking in-store music directly to shopper decision making and brand recognition. There are

a number of possible methodologies that could be combined to ensure a „richness‟ of data.

These could include a series of field „experiments‟ in multiple stores to explore the

relationship between different music genre, tempo and volume and the influence on retail

brand and shopper behaviour and a test of existing music perceptions associated to specific

retail brands. The study ideally should take place over a period of time and during a variety

of time specific and consistent periods (i.e mornings, 10am-11am, afternoons, 3pm-4pm

evenings and weekends). Specific trading hours need to be selected and research questions

should relate to store stay time, customer flow, purchase decisions and retail brand

recognition.

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