Developing a structured framework to better understand the physical environment of retail establishments and its impact on shoppers

Abstract

Purpose: This paper aims to better understand what environmental factors in an apparel retail outlet affect what type of customer. It tries to build on behavioural theories as well as sensory marketing in order to provide an easier and more approachable model for businesses to target the right audience using the right stimuli. Design/Methodology/Approach: Being a practically untapped research topic in Malta, the study adopted an exploratory approach. In-depth interviews with 7 managers, 2 focus groups as well as 120 questionnaires with female students between 18-25 years of age were conducted. Findings and practical implications: The study reveals that although customer importance is recognized by many retailers, customer centricity still lacks significantly. It was noted that a well defined store atmosphere provides the basis for a favourable customer experience; and that differentiation of a retail outlet should start from the very basic elements in store. A lack of adequate fitting rooms, seating, lighting and music in some cases, is also evident amongst retailers; all factors considered extremely important by the customers. Regarding scents then, while practically no retailer caters for this sense in their store, the Maltese customers are open and willing for changes in the store environment. It was recognized that the Maltese customer still lacks behind the equivalent abroad, but in this binary society, customer knowledge and changing patterns are changing significantly. Ultimately, a holistic sensory experience is the way for the future. Research limitations: Due to the complexity of the subject as well as research approach adopted, the findings may lack generalisability. More detailed studies need to be made testing the proposed model in different service settings and with different target audiences.