Empirical Investigation into the Effects of Shopping Motivation on Store Environment-Value Relationship

A recent survey by IBM institute for Business Value reports that fifty four percent retailers are improving upon their store design to facilitate a rich experience for their customers. These changes stress upon improved functionality and efficiency of the store as well as making the shopping task a fun activity. Retailers are recognizing that today's shopper is not only seeking utilitarian benefits but also desires fulfillment at an emotional level. Thus, the store environment has to be geared towards facilitating both the utilitarian and hedonic desires of a consumer. Traditionally, researchers have studied the effect of store environment on cognitive evaluations of customers. These cognitive evaluations include perceived merchandise quality, perceived price, perceived service quality etc. This study broadens the scope of store environment research to affective evaluations as well. The main purpose of the study is to examine the role of store environment on customers' internal evaluations which constitute both utilitarian and hedonic evaluations; and how these evaluations lead to the customers' judgment of overall value. Additionally, it is proposed that store environment will not impact all the customers in a similar manner. Customers will value only those consequences which they desire. Therefore for some customers the primary drivers of value will be utilitarian benefits whereas for others hedonic benefits. Customer's shopping motivation is identified as the moderating factor in the model. Data were collected using a survey methodology. Shoppers' perception of store environment was recorded after they had visited a particular store. They were also asked about various cognitive and affective evaluations they made in the store as well as their perceptions of overall value received. Generally the model presented in this study was supported. The three dimensions of store environment –social factors, ambiance and design factors were found to influence evaluations of merchandise quality, interpersonal quality, price, efficiency, enjoyment, appeal and escapism. Additionally, these evaluations contribute to the customers' perceptions of overall value. Individual perceptions of value lead the customers to spend more time in the store and create a desire to visit the store again. The equivalence of the model for recreational and task oriented shoppers was also examined in the study. Findings suggest that the value formation for recreational and task oriented shoppers is different. Whereas, recreational shoppers take both cognitive and affective evaluations into account while forming value perceptions; task oriented shoppers are more inclined towards cognitive evaluations such as perceptions of interpersonal quality, efficiency, merchandise quality and price. In sum, this study emphasizes that store environment impacts consumer perceptions of utilitarian and hedonic benefits offered by the store, and may influence different types of shoppers in unique ways.