MKT 325 Services Marketing

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MKT 325 Retail/Service Topic Store Layout,
Design, and Atmospherics
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Meeting Store Design Objectives

• Design store and product mix to fit target
  market.
• Design for Convenience and/or Image and/or to
  increase sales/profitability
• Atmosphere Any surrounding or pervasive element
  or influence
• Non-Product Related Stuff (Atmospherics)
• vs. Product Related Stuff (Merchandising)

Source Funk Wagnalls Standard College
Dictionary, 1974
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Effect of Atmospherics on Mood

• Enjoyable shopping environments can induce
  positive moods in shoppers (1)

(1) Smith and Sherman 1993
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Effect of Mood on Shopping Behavior

• Positive Correlation between Mood and
• Satisfaction with Retailer (2)
• Rating of Overall Store Image (3)
• Number of Items Purchased (3)
• Time Spent Shopping (3)
• Amount of Money Spent (3)

(2) Babin and Darden 1996 (3) Sherman and
Smith 1987
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Retail Atmospherics Outline

• Social Factors
• Retail Density / Employee Availability
• Ambient Factors
• Music / Lighting / Scent
• Design Factors
• Color / Signage / Layout

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Atmospherics - Social Factors

• Retail Density
• Eroglu and Machleit 1990
• Web download time analogy
• Employee Availability
• Baker et al. 1994

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Atmospherics - Design Factors

• Color (Warm vs. Cold)
• Bellizzi et al. 1983
• Signage (Present/Bold vs. Absent)
• Various Sources
• Layout (Grid vs. Free-Flowing)
• Various Sources

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Grid Store Layout
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Grid Layout

• Who uses it?
• Used in grocery and drugstores.
• Whats good about it?
• Cost efficient.
• Easy to navigate / remember

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Racetrack Layout

• Who uses it?
• Whats good about it?
• Draws customers around the store.
• A.K.A.--loop.
• Time spent in store
• Show BEST Product racetrack design

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Free-Flowing Layout
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Free-Form Design

• Fixtures and aisles arranged asymmetrically
• Used in small specialty stores and departments
  within large stores.
• Pleasant ambiance doesnt come cheap.

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Free-Form Layout
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I.C.B. _at_ Bloomingdales

• Fixtures with latest garments are placed along
  the perimeter to draw customers into area.
• Flooring and lighting delineate department.
• See picture on next slide...

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Store Layout for Cost, for Image, or for
Convenience ?

• Wal-Mart?
• CVS?
• JC Penney?

• Building 19?

• Staples?

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Behavioral Design Issues

• Show Paco Underhill Clip
• Decompression Zone
• Butt-Brush Factor
• etc.

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Atmospherics - Ambient Factors

• Music (Waiting in Line)
• Hui, Dube and Chebat 1997
• Perceived wait duration
• Emotional Eval. of Service Environment
• Approach Behavior
• Music (Loudness)
• Smith and Curnow 1966

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Atmospherics - Ambient Factors

• Music (Liked vs. Disliked)
• Gorn 1982
• Music (Fast Tempo Supermarket)
• Milliman 1982
• Music (Slow Tempo Restaurant)
• Milliman 1986

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Atmospherics - Ambient Factors

• Lighting (Harsh vs. Soft)
• Various Sources
• Scent (Present vs. Absent)
• Hirsch and Gay 1991
• Scent (Odor 1 vs. Odor 2)
• Hirsch 1995 (Casino Study)
• Show Casino Layout

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Alan Hirsch, M.D(The Scent Guy)
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Casino Study Questions

• Do you see any relation between this and a normal
  retail environment?
• Is pumping in a scent like Odorant A any
  different than pumping bakery smells across a
  grocery store?
• Of you were a store owner, would you use Odorant
  A if you could?
• Is there a potential downside to it?