Impact of Store Ambience on Consumer Variety Seeking Behaviour

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How important is the environment of a store? Does it impact the variety seeking behaviour of a consumer? Impact of Store Ambience on Consumer Variety Seeking Behaviour BHINAV VK (12P121) | ISHPREET SINGH (12P139) | KARAN JAIDKA (12P141) HITIJ AHUJA (12P143) | MAYANK SHARMA (12P150) | ADITI PANDEY (12P183 CONSUMER BEHAVIOUR – SECTION B – GROUP 6 MDI, GURGAON

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Transcript of Impact of Store Ambience on Consumer Variety Seeking Behaviour

Page 1: Impact of Store Ambience on Consumer Variety Seeking Behaviour

How important is the environment of a store?

Does it impact the variety seeking behaviour of a consumer?

Impact of Store Ambienceon Consumer Variety Seeking Behaviour

ABHINAV VK (12P121) | ISHPREET SINGH (12P139) | KARAN JAIDKA (12P141) KSHITIJ AHUJA (12P143) | MAYANK SHARMA (12P150) | ADITI PANDEY (12P183)

CONSUMER BEHAVIOUR – SECTION B – GROUP 6 MDI, GURGAON

Page 2: Impact of Store Ambience on Consumer Variety Seeking Behaviour

Introduction

This is the tendency of an individual to seek change over time

Mostly attracts attention in the retail and shopping segment

Various personality, product category and situational variables drive variety seeking

Variety Seeking Behaviour

Store environment comprises ambience, design and social factors

Retailers go the extra mile to make the retail ‘experience’ a key differentiator

There is growing evidence about the influence of store environment on variety seeking behaviour

Store Environment

Personality

Optimum Stimulation

Level

Deal Proneness

Self-monitoring

Goal Orientation

Product Category

Involvement

Hedonic features

Situational Variables

Positive affect

Public scrutiny of

choices

Activation of negative concepts

Ambient Factors

Light

Scent

Music

Design Factors

Layout

Assortment

Social Factors

Presence of salespersons

Effectiveness of

salespersons

Consumer Behaviour | Section B | Group 6

Page 3: Impact of Store Ambience on Consumer Variety Seeking Behaviour

Research Problems Identified

Does customer positive affect has an impact on variety seeking behavior? If yes, how much

Does overall perception of store environment have a positive impact on positive affect? If yes, how much

Does overall perception of store have an impact on variety seeking? If yes, how much

Does optimum stimulation level have an impact on variety seeking behavior? If yes, how much

Does deal proneness have an impact on variety seeking behavior? If yes, how much

Consumer Behaviour | Section B | Group 6

Page 4: Impact of Store Ambience on Consumer Variety Seeking Behaviour

Hypotheses

H1

• Customer Positive Affect has a statistically significant positive impact on Variety Seeking Behavior

H2

• Store Environment has a statistically significant positive impact on Customer Positive Affect

H3

• Store Environment has a statistically significant positive impact on Variety Seeking Behavior

H4

• Optimum Stimulation Level has a statistically significant positive impact on Variety Seeking Behavior

H5

• Deal Proneness has a statistically significant positive impact on Variety Seeking Behavior

Consumer Behaviour | Section B | Group 6

Page 5: Impact of Store Ambience on Consumer Variety Seeking Behaviour

Model Used for the Study

Deal Pronen

ess

Variety Seeking Behavio

ur

Positive Affect

Ambient

Factors

Design Factors

Social Factors

Store Environ

ment

Optimum

Stimulation

Level

H1H2

H3

H4

H5

Consumer Behaviour | Section B | Group 6

Page 6: Impact of Store Ambience on Consumer Variety Seeking Behaviour

Sample

63 respondents from MGF Metropolitan Mall in Gurgaon were surveyed

2 stores were chosen for the research viz. Auchan, Lifestyle

Mall intercept method was used to collect data

47% of the shoppers were women and 53% were men

Average age of the sample is 36.8 years of age

A wide range of demographic profile was covered

A particular day on which the stores make various deals arranged for the customer was chosen

Interviews were taken at different times of the day

Consumer Behaviour | Section B | Group 6

Page 7: Impact of Store Ambience on Consumer Variety Seeking Behaviour

Validity and Reliability

Face validity was used to validate the items of the measure

The questionnaire was subjectively viewed by the group and it was judged if the questionnaire will be able to measure the required parameters

Validity

Cronbach’s Alpha was used for testing the reliability of the measure

Reliability

Light Assortment

Layout

Employee

Positive Affect

Optimum Stimulation Level

Deal Pronen

ess

Cronbach’s Alpha 0.796 0.781 0.808 0.877 0.769 0.744 0.895

Since the value of Cronbach Alpha in each case exceeds 0.70, we can conclude that the instrument is reliable

Consumer Behaviour | Section B | Group 6

Page 8: Impact of Store Ambience on Consumer Variety Seeking Behaviour

Analysis (1 of 2)

Hypothesis

Dependent

Variable

Independent

Variable (Predictor

)

R-square Value

Significance Level

Co-efficient

‘a’

Constant

H1

Variety Seeking Behavio

ur

Positive Affect

0.033 0.152 0.223 1.509

H2 Positive Affect

Store Environm

ent0.326 0.000 0.534 2.009

H3

Variety Seeking Behavio

ur

Store Environm

ent0.458 0.000 0.774 -0.183

H4

Variety Seeking Behavio

ur

Optimum Stimulation Level

0.408 0.000 0.453 0.889

H5

Variety Seeking Behavio

ur

Deal Proneness

0.279 0.000 0.378 1.285Consumer Behaviour | Section B | Group 6

Page 9: Impact of Store Ambience on Consumer Variety Seeking Behaviour

Analysis (2 of 2)

Since the significance level in H1 is greater than 0.05 (not statistically significant), H1 can not be proved

All other hypotheses can be proved with 100% confidence level Looking at path coefficients, Store environment has the highest

impact on Variety seeking behavior of a customer Exactly which component of Store environment has the highest

impact cannot be determined All the impact of Store environment on Variety seeking behavior is

due to direct impact (not significant impact through mediating variable Positive affect)

Stores can look towards more investment in Store environment for greater sales

OSL and Deal Proneness also have a good impact on Variety seeking behavior of a consumer

Customers look for good deals and they can reduce the customer’s brand loyalty

Personal characteristics of a customer also play a big role in his variety seeking behavior

Overall, the model’s R-square value is 0.628 which explains that 62.8% variance in Variety seeking behavior is explained by the model

Path coefficients for the whole model are 0.401 for Store environment, 0.25 for OSL and deal proneness

Consumer Behaviour | Section B | Group 6

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Limitations and Future Scope

More number of stores which are diverse in nature should have been included

The factor of store environment which impacts the most could not be determined

How variety seeking works in different product categories was not included in the study

There can be more parameters affecting variety seeking behavior of customers like promotional offers etc. which could not be included in the study

The research was restricted to stores of only one single mall

Consumer Behaviour | Section B | Group 6

Page 11: Impact of Store Ambience on Consumer Variety Seeking Behaviour

References

Mohan, Sivakumaran, Sharma: Store environments impact on variety seeking behaviour (2012)

Givon: Variety seeking through brand switching (1984)

Donovan, R.J., Rossiter, J.R., Marcoolyn, G., Nesdale, A: Store atmosphere and purchasing behavior (1994)

Sharma, P., Sivakumaran, B., Marshall, R: Impulse buying and variety seeking: a trait-correlates perspective (2010)

Sherman, E., Mathur, A., Smith, R.B: Store environment and consumer purchase behavior: mediating role of consumer emotions (1997)

Consumer Behaviour | Section B | Group 6

Page 12: Impact of Store Ambience on Consumer Variety Seeking Behaviour

Impact of Store Ambienceon Consumer Variety Seeking Behaviour

ABHINAV VK (12P121) | ISHPREET SINGH (12P139) | KARAN JAIDKA (12P141) KSHITIJ AHUJA (12P143) | MAYANK SHARMA (12P150) | ADITI PANDEY (12P183)

CONSUMER BEHAVIOUR – SECTION B – GROUP 6 MDI, GURGAON

Thank You!