A STUDY ON THE IMPACT OF STORE ATMOSPHERIC ATTRIBUTES ON CUSTOMERS’ E XPERIENCES
AND THEIR BEHAVIORAL INTENTION AT SIME
DARBY AUTO BAVARIA SDN BHD, GLENMARIE, SHAH ALAM
AKMAL SYALWANI BINTI IDRIS 2010132513
BACHELOR OF BUSINESS ADMINISTRATION WITH HONOURS (RETAIL MANAGEMENT) FACULTY OF BUSINESS MANAGEMENT UNIVERSITI TEKNOLOGI MARA SHAH ALAM
DECEMBER 2013
A STUDY ON THE IMPACT OF STORE ATMOSPHERIC ATTRIBUTES ON CUSTOMERS’ EXPERIENCE S
AND THEIR BEHAVIORAL INTENTION AT SIME
DARBY AUTO BAVARIA SDN BHD, GLENMARIE, SHAH ALAM
AKMAL SYALWANI BINTI IDRIS 2010132513
Submitted in Partial Fulfillment of the Requirement for the Bachelor of Business Administration with Honours (Retail Management)
FACULTY OF BUSINESS MANAGEMENT UNIVERSITI TEKNOLOGI MARA SHAH ALAM
DECEMBER 2013 DECLARATION OF ORIGINAL WORK
BACHELOR OF BUSINESS ADMINISTRATION WITH HONOURS (RETAIL MANAGEMENT) FACULTY OF BUSINESS MANAGEMENT UNIVERSITI TEKNOLOGI MARA
"DECLARATION OF ORIGINAL WORK"
I, AKMAL SYALWANI BINTI IDRIS, (I/C Number: 911026105140)
Hereby, declare that:
This work has not previously been accepted in substance for any degree, locally or overseas, and is not being concurrently submitted for this de gree or any other degrees.
This project-paper is the result of my independent work and investigation, except where otherwise stated.
All verbatim extracts have been distinguished by quotation marks and sources of my information have been specifically acknowledged.
Signature: _________________________ Date: ______________________
ii
LETTER OF SUBMISSION
Date of Submission: December 2013
The Programme Coordinator, Bachelor of Business Administration (Hons) Retail Management Faculty of Business Management Universiti Teknologi MARA 40450 Shah Alam Selangor.
Dear Sir/Madam,
SUBMISSION OF PROJECT PAPER
Attached is the project paper titled “A STUDY ON THE IMPACT OF STORE ATMOSPHERIC ATTRIBUTES
ON
CUSTOMERS’
EXPERIENCES
AND
THEIR
BEHAVIORAL
INTENTION AT SIME DARBY AUTO BAVARIA SDN BHD, GLENMARIE, SHAH ALAM” to fulfill the requirement as needed by the Faculty of Business Management, MARA University of Technology.
Thank you
Your sincerely
AKMAL SYALWANI BINTI IDRIS 2010132513 Bachelor of Business Administration (Hons) Retail Management iii
ACKNOWLEDGEMENT
All praise due to Allah SWT, the Lord of the world that makes it possible for me to complete this project paper. Blessing and salutation also be on Prophet of Allah SWT, Muhammad SAW. I would like to take this opportunity to express my gratitude and appreciation to the following individuals whose gave their guidance, advice and contribution in preparing this research paper. . First of all, I would like to express my gratefulness and appreciation to my advisor, Dr. Lennora Putit for her guidance, encouragement and advices throughout the process of completing this project paper. Without her, this paper work cannot be complete successfully. Word of appreciation also goes to my supervisor of practical training, Mr Mohd Sykhed Fadly Bin Mat Husin, the Business Operation & Distribution Executive at Auto Bavaria Glenmarie and all the staffs Auto Bavaria Glenmarie for their cooperation and tolerance.
Very special thanks to my beloved parents, Encik Idris Bin Ramli and Puan Maznah Binti Yahya for their constant love and moral supports throughout my years of study. I also would like to thanks to my beloved friends that always supports and gave encouragement to complete this study. I also like to thank to all respondents of this study which this study would not have been successful. Last but not least, my thanks to all who are involved direct and indirectly in the process of completing this study.
Thank you.
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TABLE OF CONTENTS Page
TITLE PAGE.................................................................................................................................. i DECLARATION OF ORIGINAL WORK....................................................................................ii LETTER OF SUBMISSION..........................................................................................................iii ACKNOWLEDGEMENT..............................................................................................................iv TABLE OF CONTENT...................................................................................................................v LIST OF FIGURES.........................................................................................................................x LIST OF TABLES …………………………………………………………………………........ xi LIST OF ABREVIATIONS ……….……………………………………………………….…. xiii LIST OF APPENDICES
xv
ABSTRACT ………………………………………………………………………………….. xvi
CHAPTER 1 INTRODUCTION
1.0
Background of study .............................................. .........................1
1.1
Background of company .................................................................5 1.1.1
About Auto Bavaria …........................................................5
1.1.2
Auto Bavaria - Product & Service ……..............................6
1.2
Problem Statement...........................................................................7
1.3
Research Questions..........................................................................9
1.4
Research Objectives.........................................................................9
1.5
Hypothesis of Study...................................................................... 10
1.6
Theoretical Framework................................................................. 10 v
1.7
1.8
Significant of Studies
11
1.7.1
Auto Bavaria
12
1.7.2
Auto Dealership Industry..………………………………13
1.7.3
Customers ………......……………………………...........13
Scope of Study …..........................................................................14 1.8.1
1.9
1.10
Gap of Knowledge.............................................................14
Limitations of Study......................................................................15 1.9.1
Respondents.......................................................................15
1.9.2
Sampling Location.............................................................15
1.9.3
Secondary Sources............................................................16
Definition of Terms.......................................................................18 1.10.1 Lighting ………….............................................................18 1.10.2 Background Music ............................................................18 1.10.3 Color …….........................................................................18 1.10.4 Visual Merchandising ……………………………….......18 1.10.5 Customer Experience ……................................................19 1.10.6 Customer Behavioral Intention ……….…………………19
CHAPTER 2 LITERATURE REVIEW
2.0
Introduction...............................................................................................20
2.1
Review of literature................................................................... .................20 2.1.1
Store Atmosphere..............................................................20
2.1.2
Lighting ………….............................................................21
2.1.3
Background Music ............................................................23
2.1.4
Color ………….................................................................24
2.1.5
Visual Mer chandising ……………………………….......25
2.1.6
Customer Experience …………………………………... 26 vi
2.1.7
Customer Behavioral Intention..........................................27
CHAPTER 3 METHODOLOGY
3.0
Introduction............................................................................................... 29
3.0.1
Research Design ….…………………………………………………….. 29
3.0.2
Quantitative Design .………………………………………………...…. 29
3.1 Data Collection Method………………………………………………………...…. 30 3.1.1
Primary Data…………………………………………………………..... 30
3.1.2
Secondary Data………………………………………………………..... 30
3.2 Sampling Design…………………………………………………………………... 31 3.2.1
Target Population……………………………………………………….. 31
3.2.2
Sampling Frame and Sampling Location……………………………….. 31
3.2.3
Sampling Elements………………………………………...………….... 32
3.2.4
Sampling Technique…………………………………………………..... 32
3.2.5
Sampling Size…………………………………...……………………… 33
3.3 Research Instrument….............................................................................................. 33 3.3.1
Questionnaire Design………………………………………………........ 34
3.4 Construct Measurements……………………………………………...………….... 35 3.4.1
Scale Definitions………………………………………...…………….... 35
3.4.2
Sources of Measurements………………………………………………. 36
3.4.3
The survey instruments ……………...……………………………….... 37
3.5 Getting the data for analysis…………………………………...………………….. 39
3.6 Data Analysis…………………………………………………………...…………. 40 vii
3.6.1
Descriptive Analysis……………………………………………………. 40
3.6.2
Scale Measurements………………………………………………....….. 41 3.6.2.1 Reliability Test………………………………………………….. 41 3.6.2.2 Exploratory Factor Analysis ………………………………….... 42
3.6.3
Inferential Analysis……………………………………………….…….. 42 3.6.3.1 Pearson Correlation Analysis………………………..………….. 43
3.6.4
Multiple Regression Analysis……………………………….………….. 43
CHAPTER 4 DATA ANALYSIS
4.1 Preamble ………………………………………………………….………………... 45 4.2 Demographic Profile ……………………………………………………………….. 45 4.3 General Information ……………………………………………………………..…. 52 4.4 Exploratory Factor Analysis ……………………………………………………….. 56 4.5 Reliability Test …….………………………………………………….…….…….... 60 4.6 The Central Tendencies Measurement of Construct …………………………….…. 61 4.7 Correlation Matrix …………………………………...…………………………….. 67 4.8 Multiple Regression Analysis ……………………………………………………… 72 4.9 Multiple Regression Equation …………………………………………………...…. 76
CHAPTER 5 CONCLUSION AND RECOMMENDATION
5.0 Preamble ……….…………………………………………………………………………... 78 5.1 Discussions ………………………………………………………………………… 78 5.1.1
Lighting ………………………………………………………………… 78
5.1.2
Background Music ………………………………………………...…… 79 viii
5.1.3
Color ………………………………………………………………….... 79
5.1.4
Visual Merchandising ………………………………………………..… 80
5.1.5
Customer Experience & Behavioral Intention & the Best Atmospher ic Factors …………………………………….... 80
5.2 Conclusions ………………………………………………………………………… 81 5.2.1
Lighting ………………………………………………………………… 82
5.2.2
Background Music……………………………………………………... 83
5.2.3
Color …………………………………………………………………… 84
5.2.4
Visual Merchandising ………………………………………………….. 84
5.2.5
Customer Experience …………………………………………………... 85
5.2.6
Customer Behavioral Intention ………….……………………………... 86
5.3 Implication of Study ……………………………………….………………………. 86 5.4 Recommendations for Sime Darby Auto Bavaria Sdn Bhd ………...……………… 88 5.4.1
Lighting …………………………………………………………...……. 89
5.4.2
Background Music……………………..……………………………….. 90
5.4.3
Color …………………………………………………………………… 91
5.4.4
Visual Merchandising ……………………………………………….…. 92
5.5 Recommendations for Futur e Research ……………………………………………. 93
REFERENCES ……………………………………………………………………………….. 96
APPENDICES …...……………………………………………………………………...…......99
ix
LIST OF FIGURES Page Figure 1.1: The effect of design factors on store image and consumers’ expectation of
merchandise quality by Jungmi Oh ……………………………………………………………… 2 Figure 1.2: The relationship between the store atmospheric cues and the effect on consumer by
Ishwar Kumar …………………………………………………………………………………......3 Figure 1.3: The Mehrabian-Russell model on the effect of environmental stimuli on emotional
state and customer behavior …………………………………………………………………..…. 4 Figure 1.4: The theoretical framework of relationship between the store atmospherics attributes,
experience perceived by the customer and their behavioral intention ….…………………….... 11 Figure 4.1: Percentage of Respondents based on Gender…………...……………………….… 45 Figure 4.2: Percentage of Respondents based on Age…………...……………………………...46 Figure 4.3: Percentage of Respondents based on Nationality ……..……...…………………….47 Figure 4.4: Percentage of Respondents based on Race …………...…………….…………...… 47 Figure 4.5: Percentage of Respondents based on Highest Academic Qualification ….……….. 48 Figure 4.6: Percentage of Respondents based on Employment Status ……...………………… 49 Figure 4.7: The Percentage of the Respondents’ First Product Purchase ………...……….…... 52 Figure 4.8: The Percentage of the Respondents’ Second Product Purchase …...…………….... 53 Figure 4.9: The Percentage of the customers’ rating whether Auto Bavaria needs atmosphere
changes or not? ……………………………………………………………………………….... 54 Figure 4.10: The Percentage of the medium that respondent knows Auto Bavaria (1) ……….. 54 Figure 4.11: The Percentage of the medium that respondent knows Auto Bavaria (2) ……….. 55
x
LIST OF TABLES Page
Table 3.1: Sources of Measurement…………………………………………………...……….. 36 Table 3.2: The Survey Instruments …………………………………………………...……….. 37 Table 3.3: The Rule of Thumb for Cronbach’s Alpha Coefficient Value……………………… 41 Table 4.1: Summary of Demographic Profile ……………………...……………………..…… 50 Table 4.2: KMO and Bartlett’s Test …………………….……………………………………... 56 Table 4.3: Total Variance Explained ………………………….……………………………….. 57 Table 4.4: Rotated Component Matrix ……………………………………………………….... 58 Table 4.5: Summary of Reliability Analysis ……………………...…………………………… 60 Table 4.6: Summary of Central Tendency for Lighting …………………………………...…... 61 Table 4.7: Summary of Central Tendency for Background Music …………………………..... 62 Table 4.8: Summary of Central Tendency for Color ……...………………………….…...…... 63 Table 4.9: Summary of Central Tendency for Visual Merchandising ………......………...…... 64 Table 4.10: Summary of Central Tendency for Customer Experience ………………………... 65 Table 4.11: Summary of Central Tendency f or Customer Behavioral Intention …....….....…... 66 Table 4.12: The Correlations between the Store Atmospheric Attributes and the Customers’
Experiences …………………………………………………………………………………….. 67 Table 4.13: Correlation between Customers’ Experiences and their Behavioral Intention ........ 68 Table 4.14: The Correlation between the Customers’ Exper iences and the Behavioral Intention
(Store Atmosphere helps me to make to make a decision) …………………………………….. 69 xi
Table 4.15: The Correlation between the Customers’ Experiences and the Behavioral Intention
(The store atmosphere makes me comfort to stay longer in the store) ……………………….... 69 Table 4.16: The Correlation between the Customers’ Experiences and the Behavioral Intention
(The atmospheric factors in this store are successful in putting trust in me) …………………... 70 Table 4.17: The Correlation between the Customers’ Exper iences and the Behavioral Intention
(I would like to recommend other peoples to come and buy product/services from this store)... 71 Table 4.18: The Correlation between the Customers’ Experiences and the Behavioral Intention
(I would like to purchase again in the future) ……………………………………………....….. 71 Table 4.19: Multiple Regression Analysis; Model Summary (First Model) …….…………..… 72 Table 4.20: Multiple Regression Analysis; ANOVA (First Model) …….………………….…. 72 Table 4.21: Multiple Regression Analysis; Coefficients (First Model) ………………….....…. 73 Table 4.22: Multiple Regression Analysis; Model Summary (Second Model) ……………….. 74 Table 4.23: Multiple Regression Analysis; ANOVA (Second Model) ………………….......… 75 Table 4.24: Multiple Regression Analysis; Coefficients (Second Model) ………….…….…… 75 Table 4.25: Summary of hypotheses result for store atmospheric attributes and customer
experience (First Model) ……………………………………………………………………..… 76 Table 4.26: Summary of hypothesis result for customer experience and the customer behavioral
intention (Second Model) …………...…………………………………………………………. 76
xii
LIST OF ABBREVIATIONS
ANOVA
Analysis of Variance
BM
Background Music
L
Lighting
C
Colour
VM
Visual Merchandising
CBI
Customer Behavioral Intention
BI
Behavioral Intention
CE
Customer Experience
DV or Y
Dependent Variable
IV or X
Independent Variable
H
Hypothesis
r
Correlation Coefficient
R 2
Coefficient of Determination
B
Beta
Std. Error/ SE
Standard Error
Sig.
Significant
SPSS
Statistical Package for Social Science
S.O.R
Stimulus – Organism – Response
BMW
Bayerische Motoren Werke xiii
R&D
Research and Development
LED
Light Emitting Diode
ACCA
Association of Chartered Certified accountants
IT
Information Technology
PHD
The Doctor of Philosophy
BPS
BMW Premium Selection
LPGA
Ladies Professional Golf Association
KMO
Kaiser – Meyer – Olkin
xiv
LIST OF APPENDICES Page Appendix 1.0 Questionnaires……………………………………………………………...….... 1 Appendix 2.0 SPSS Data Analysis …………………………………………………………….. 6
A. Frequency Distribution B. Reliability Test C. Central Tendencies Measurement of Construct D. Exploratory Factor Analysis Appendix 3.0 Pictures.................................................................................................................. 31
xv
ABSTRACT
The purpose of this study is to investigate the relationship between the store atmosphere factors, customer experiences and behavioural intention at Auto Bavaria, Glenmarie. It also aims to examine the influence and effect of having good and interesting store atmosphere towards customer experiences and then will resulting to a positive behavioural intention. There are four contributing factors of store atmosphere are being identified, which are lighting, background music, colour and visual merchandising which is also the independent variables in this research, while the experience perceived by the customer known as the mediating variable and the customer behavioural intention as a dependent variables. Each of the store atmosphere attributes was tested to determine and measure the relationship with customer experience and their behavioural intention. Besides that, this study also wants to concentrate on the customers’ perception and evaluation toward store atmosphere in Auto Bavaria, Glenmarie. Different SPSS analyses such as reliability test, factor analysis, correlation and regression are carried in order to interpret the customers’ response towards the atmospheric factors. The questionnaires were filled by the respondents who already purchase products and also customer who come to Auto Bavaria’s showroom and intend to buy cars, motorcycles, parts or accessories at Auto Bavaria. For this quantitative research, a total of 170 respondents participated in the survey. The participating respondents represented a return rate of 92% after distribute the questionnaire directly to the respondents face to face, by email and mail.
Key words: Store atmospheric attributes, Customer experiences, Behavioural Intention, Auto Bavaria
xvi
CHAPTER 1: INTRODUCTION
First of all, in Chapter One, researcher briefly explain the broad scope of this research which includes the background of study, description of the company, problem statement, research questions, research objectives, hypothesis of the study, theoretical framework, significant of study, scope of study and limitation of study.
1.0
Background of Study
For retailers and store managers, shopping is the art of persuasion. Though there are many attributes that can influence how and what the consumers will buy. However, visual cues such as lighting, background music, color and visual merchandising being the strongest and most persuasive factors compared to the other attributes (Bohl, 2011). In 1973, Kotler has introduced the concept of store atmosphere, that is, the effort to design a physical store environment that provides specific emotional effects to the customers that encourages customer behavior. The buying process in a retail atmosphere is triggered when the customer recognize that they put high expectation towards a store (Bohl, 2011). Along with the trends toward retail innovation and evolution, retailers and store managers now interested in how shoppers get experience while they come to the store. It has long been recognized that consumers respond not only based on the product or service quality itself but they also take much attention on the store environment. It is because; besides product and services, the atmosphere of a store also one of the influential factors in the purchase experience (Kotler, 1973). In fact, Turley & Milliman (2000) believed that store atmosphere contributes to a business success or failure. Store atmosphere encompass the attributes that aims to strengthen the store environment with the combination of different cues such as lighting, color, background music, and scent. A study found that 87% of Hungarian store managers take attention on retail styles, colors, and size of the store as important part of tactical marketing (Jozsa et al,1999).
1
Kotler (1973), found that the earlier meaning for store atmosphere is like a purchase environments was designed to produce specific emotional effects towards the customer and then the purchase probability. Although increasing the sales and profits become the priority objective and missions for most of the retail stores, the store managers have been realized that the level of customers’ experiences and perceptions while having their visit in the store also become the prime objectives to them. Thus, the retailer especially in the automotive dealership industry wants to make the customer to stay longer in the store, so that customer can explore the ideas and make decision to purchase more products or service since they already attracted to the store atmosphere (d’Astous, 2000). In figure 1.1, based on Jungmi (2007), stimulus in the first box identified as independent variables that used to create store atmosphere. The researcher put the measurement of design factors, storefront design and information display as the main focus in this study. In this framework, the independent and dependent variables are connected through the mediating variables which are the consumer’s perception towards the store images, safety, convenience, and entertainment. While the dependent variables is the response of the individuals’ expression and the study concentrate on the consumers’ expectation towards the merchandise quality.
Figure 1.1: The effects of stimulus (design factors & information display) on store image and consumers’ expectation towards the merchandise quality Based on Ishwar Kumar (2010), retail atmospherics as shown in Figure 1.2 consisting of selected atmospheric cues such as lighting that can be discuss about the bright or dim lighting, background music whether it slow, ballads, classical or familiar music, attractive window 2
dressing and layouts, unique architectural design, freshness and nice fragrance, appropriate temperature to build a cozy and comfortable environment, match and trendy color coordination, captivating and memorable logo, an ideal type of good and merchandise crowd that can bring behavioral effect to the current and future consumers (Smith and Burns, 1996).
The entire retail environment that includes the design of store brands can develop their own brand messages and consumer experiences throughout the shopping endeavor. The retail environment is harmoniously designed in order to communicate brand personality and the store image. In order to create positive customer perceptions, the retailer can do some innovation project for the store atmosphere and by doing that, the store will provide silent communication with the customers about the retailer's brand value, each element of the retail environment also need to be transformed so that it is differentiated from the other retailers. On the other hand, retailer also can make it more standardized and thus tend to contribute the consumers' purchase decision (Bohl, 2011).
Figure 1.2: The relationship between the store atmospheric cues and the effect on consumer However, according to Baker (1987), he has identified those environmental cues in a store which are ambient factors (temperature, humidity, background music, scent and cleanliness), design factors (colour, decor, texture, style, pattern, layout, accessories and signage) and social factors which is the influence of human presence in the store area. Based on Baker (1987) study, the ambient factors such as background music and scent did not motivate the customer 3
purchase decisions, but it is important to simply meet the customer expectations and experience.
Figure 1.3: The Mehrabian - Russell model on the effect of environmental stimuli on emotional state and customer behaviour Based on the above figure, it can be known as the model of Mehrabian - Russel which is an approach of Stimulus-Organism-Response (S.O.R) model. There are two focus studies on environmental psychology which is the effect of physical stimuli on individual’s emotion and the effect of physical stimuli on the individual’s behaviors (Mehrabian & Russell, 1974). Researcher found that, this model can be applied as valuable study to store environments and atmosphere. In this research, the researcher also wants to adapt the Mehrabian - Russell model into the retail scope in order to find the relation between store atmosphere and customer’s experience. Besides that, the framework shows that a particular atmosphere can cause certain emotional response in an individual especially for customer in a retail sector. In other words, because of certain atmosphere, it can cause an individual to approach or avoid the environment whether it greater or in lesser degree (Billings, 1990). In summary, atmosphere enhancement in a retail store is very essential since the customer will observe the surrounding store area and it automatically can influence the customer’s experience and perceptions. Besides, a business is impossible to hide their actual store atmosphere from the customer to feel and see b y their own.
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1.1
Background of Company
1.1.1 Au to Bavari a
Auto Bavaria is the largest auto retail and service organization of BMW, MINI Cooper and Motorrad (Motorcycle, Scooter & Superbike) in Malaysia. This is one of the famous brands of Sime Darby Motors. Establish in 1988; Auto Bavaria’s organization comprises of fully trained technicians and employees and has a wide range of parts and accessories together with a comprehensive range of equipment that only an authorized BMW dealer can provide. In order to give a good performance whether among the staff or the customer, Auto Bavaria use centralized online system at all Auto Bavaria branches, so it helps the employees to work more flexible and easily know the customer’s service and product history with more efficiently and effectively.
Over the years, Auto Bavaria has successfully built BMW into one of the most desirable luxury automotive brands in the country. Today, Auto Bavaria’s nationwide network infrastructure comprises five branches, namely Glenmarie, Sungai Besi, Kuala Lumpur, Penang and Johor Bahru. Auto Bavaria Glenmarie and Penang also houses the BMW Motorrad and MINI Cooper showroom. In addition, our BMW Premium Selection centre is in Glenmarie and Kuala Lumpur. Auto Bavaria has the competitive advantage among the others competitors dealer in Malaysia such as Ingress, Quill, Pendragon, Wearness Autohous, Regas and Tian Siang. It is because Auto Bavaria contributes majority of shares in BMW Malaysia and also already bein g in the markets for 25 years.
Every Auto Bavaria branch is staffed with passionate professionals dedicated to providing world class sales and aftersales service that beyond the customer’s expectations. In benchmarking Auto Bavaria against the best BMW dealers in the world, they make customer satisfaction as the top priority at Auto Bavaria. They record possibly the highest man hours in training annually in the local automotive industry to keep their staff on top of the latest innovations and technologies and constantly review processes to improve efficiency. At Auto Bavaria, they are committed to making the customer‘s BMW experience extend beyond their pur chase. 5
1.1.2 Pr oducts odu cts and an d servi servi ces ces
Auto Bavaria products includes BMW cars (1 series, 3 series, 4 series, 5 series, 6 series, 7 series, x series, z4, m series, and hybrid cars) BMW Bikes and also known as Motorrad (Sport, Competition, Tour, Roadster, Enduro, and Urban Mobility), MINI Cooper (MINI S, MINI Coupe, MINI Cabrio, MINI Clubman, MINI Countryman, MINI Paceman, MINI John Cooper, MINI Bayswater, and MINI Baker Street).
Besides providing new car from the factory, Auto Bavaria also offer used car for the customer. This package is known as BMW Premium Selection (BPS) since 2008. Even the customer owned used car from the BMW products especially at Auto Bavaria, they will get full advantage of buying this type of car same with the customer who buy a new car. It is because, Auto Bavaria only offer recent BMW models with low mileage and complete service history will be considered. To make the cut, all vehicles then undergo a thorough car services includes systems, mechanisms and safety components. Used car prices with the new car security and warranty, which is the promise from Auto Bavaria.
In addition, the customer also can enhance their lifestyle through Auto Bavaria Approved Body Shop and also buy BMW parts, accessories and gifts. Through Auto Bavaria Body Shop, they provide top quality collision repair, painting solutions, consultation and many other service for the customers. customers. The customer also can enjoy the exclusive parts and accessories design for their BMW and MINI Cooper. Auto Bavaria only offers the original BMW accessories that undergo stringent quality and safety test to fit seamlessly to the customer’s vehicles. vehicles.
On the other hand, Auto Bavaria offers the customer opportunity to trade in their old BMW car to a new one. Based on the terms and technical appraisals, Auto Bavaria will be able to provide the customer with a fair trade in price for the customers to own a new car.
In short, whether the customer are looking to buy or trade in, rest assured that Auto Bavaria’s team of experts will personally help the customer browse for a car to suit their 6
finance and lifestyle. The customers’ trust and confidence in Auto Bavaria’s team te am become the first priority and also committed in helping the customer enjoy the sheer driving pleasure with BMW.
1.2
Problem Statement
In this globalization era, many companies found that, the store atmosphere plays important roles in a store. Besides, it becomes a critical issue since the customer being more alert, sensitive and also knowledgeable because of the exposure of the information and news. From the previous studies, there are are a lot of issues can be highlight in this research such as the lighting problems, the incompatibility of store’s colour combination, the choice of background music are not appropriate, and the visual merchandising arrangement are not suitable (Zeynep & Nilgun, 2011). Nowadays, there are too much competition among the automo tive dealership industry in Malaysia whether by locally or internationally. Thus, those store manager need to take an active part to make a different and creative ideas to be idealize in their respective store atmosphere (Zakuan, 2009). According to Zeynep & Nilgun (2011), the store manager can try to create attractive store atmosphere by using mix and matching method from different store atmosphere factors. It means that, the manager can apply different combination of various stimuli (colour, light, smell, background music and visual). Besides that, Auto Bavaria also competes with other BMW Malaysia car dealer such as Ingress, Quill, Wearness Autohous, Regas and so on. The competition between the BMW (Malaysia) car dealers mainly based on service pattern and quality, customers’ experiences and expectation. Even though they sell the same product as Auto Bavaria, being different in terms of store atmosphere compared to the other dealer is also can be one of the strategies to give fascinate experience to the customer whenever they come to the store (Nell,2013). Good store atmospheres are important to give positive impact on customers who come to Auto Bavaria. According Kotler (1973), “the “the atmosphere of a place is more 7
influential than the product itself in the purchase decision”. When a store features a panoramic atmosphere plus with beautiful decoration, design, colour, lighting, an d also having convenient background music, it will create a different experience to the customer (Banat et al, 2012). Today, we can see that, many store manager especially in the automotive sector compete each other in order to accentuate a dynamic store atmosphere. Some companies take the risk to invest a lot of money in their store atmosphere enhancement activities for the sake of giving a good customer experience (Kent, 2007). On the other hand, in this case, Auto Bavaria offer luxury types of products and services. So, the expectations from the customers are eventually high (Lamb, 2012). By providing an appealing store atmosphere, it can make Auto Bavaria different from the other car dealer. Actually, when the customer already put high expectations, the company must alert on this issues. Auto Bavaria must show an exclusive and elegant theme in the store since they are offering luxurious brand and products (Gutierrez, 2006). So, with a convincing atmosphere, customer start to put confident and trust towards the company’s abilities and thus inclined and willing willing to spend more money to purchase the company’s products or services (Han, services (Han, 2011). Therefore, in this research, there are a lot of question can be roll out in order to maintain the exclusivity such as what are the key factors that can influence Auto Bavaria’s Bavaria’s store atmospheres? Does Auto Bavaria manage to provide different impact on their customers, especially in terms of their experiences during their visit in this store? Does Auto Bavaria know how customer evaluates their store atmosphere? Does Auto Bavaria need any improvement regarding to maintain or enhance their current store atmospheres? and what are the different between Auto Bavaria and the other car dealer in term of store atmosphere? In order to avoid being lag by other competitors, Auto Bavaria need to do something or doing research on this topic. The best ways to to collect the information information are by letting the customers evaluate the level of store atmosphere performance (Han et al, 2011).
8
1.3
Research Questions
In this study, there are few questions have been generate to answer the following questions about the factors that can influence the store atmosphere and the effect on the customer experience and behavioral intention. The research study will be guided by the following research question for the investigations as follows:
What is the relationship between the store atmospheric attributes (lighting, background music, color, visual merchandising) and the customer’s experience in Auto Bavaria?
Which atmospheric factors that Auto Bavaria performs the best based on the customers’ evaluation?
What is the relationship between the experience perceived by the customer at Auto Bavaria and their behavioural intention?
1.4
Research Objectives
This study is undertaken to investigate the relationship between the store atmosphere factors and its impact on customer experience and their purchase decision. It will focus on the relationship of the four (4) independent variables of atmospheric factors which are store lighting, background music, colour, and visual merchandising, customers’ experience as the mediating variables and the identified dependent variable; customer ’s behavioural intention (Levy et al, 2009).
Th e objectives of t he study are:
To determine the relationship between the store atmospheric attributes (lighting, background music, color, visual merchandising) used in Auto Bavaria and the customer experiences throughout their visit in this store.
To know the relationship between customers’ experience and their behavioural intention at Auto Bavaria.
To identify which atmospheric factors that Auto Bavaria has performed the best based on the customers’ evaluation from the questionnaire. 9
1.5
Hypotheses of the Study Th is study wi ll test th e foll owing hypotheses: -
H1: There is a significant relationship between store lighting, and customer experience in Auto Bavaria, Glenmarie. H2: There is a significant relationship between background music and customer experiences in Auto Bavaria, Glenmarie. H3: There is a significant relationship between colors and customer experiences in Auto Bavaria, Glenmarie. H4: There is a significant relationship between store visual merchandising and customer experiences in Auto Bavaria, Glenmarie. H5: There is a significant relationship between the customer ’s experience and their behavioral intention at Auto Bavaria, Glenmarie.
1.6
Theoretical Framework
A theoretical framework consists of concepts, variables, definitions, and existing theories that are used by researcher for particular study. According to Dr Norzaidi (2013), the selection of variables in a study must have the characteristics that can be measured and it is important especially when creating and designing a questionnaire. Theoretical framework must demonstrate an understanding of theories and concepts that are relevant to the topic of research paper.
Theoretical framework is not something that can be found readily in a literature. Researcher must review course readings and pertinent literature such as journals and articles in order to search related theories and analytic models that are relevant to the store atmosphere’s topic. Selection of a theory should depend on its appropriateness, ease of application, and the explanation itself (Trochim, 2006).
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Figure 1.4 The theoretical framework of relationship between the store atmospheric attributes, experience perceived by the customer and their behavioral intention at Auto Bavaria The framework above shows proposed framework to serve as foundation of this study. It is modified from the Gajanayake,S & Surangi, (2011) on the research under the title of “The Impact of Selected Visual Merchandising Techniques on Patronage Intentions” and also based on adaptation of Thang and Tan (2003) S-O-R Model theory. Purpose of this study is to examine the how the independent variables; lighting, color, background music and visual merchandising of a store will bring impact to mediating variables, customers’ experience and the dependent variables, customer behavioral intention when they visit Auto Bavaria, Glenmarie.
1.7
Significance of Study
This study demonstrates how store atmosphere factors affect the customer s’ experience and behavioral intention when they visit to Auto Bavaria in Glenmarie, Shah Alam. 11
Therefore, it will give lots of benefits and advantages to several people and also several parties such as:
1.7.1 Au to Bavari a
Due to the challenges of competitive markets, all retailers and managers try to build up a meaningful shopping experience (Baker et al., 1992) in order to enchant and retain customers as well as beat all the automotive competitors. Many researchers have realized the significant impact of store atmosphere on customer experience and also their behavioral intention (Baker et al., 2002; Bitner, 1992; Hoffman & Turley, 2002; Mattila & Wirtz, 2001; Russell & Mehrabian, 1976). Auto Bavaria is fiercely competes with many large car dealer/retailer in Malaysia. There are also issues when there are many competitors all over Malaysia that offer the same products and services such as Ingress Auto, Quill, Pendragon, Regas, Wearness Autohous, Tian Siang and so on. Besides that, Auto Bavaria common competitors that also offer the luxury type of brand such as Mercedes, Audi, and Volkswagen. Do not forget the trend of Asian car production countries such as Japan and Korea that produces a lot of great and quality car like Honda, Toyota, Hyundai, Suzuki and Mitsubishi. Those car manufacturers from the east countries have been success to bring big impact on the automotive industry (Zakuan, 2009). A creative and compatible store atmosphere will help Auto Bavaria to create their own store values and then automatically can attract the customer eyes and mind during their stay in the store. A thorough study, follow with the store innovation also can turn Auto Bavaria as the best automotive store in Malaysia.
In fact, with the attractive store atmosphere, it will give different customer’s experience which will contribute to increase the sales and profits of the store (Rhee et al, 2012). According to the previous studies, a pleasant store atmosphere can prolong the time consumers spend in the store, increasing the likelihood that the consumer will find something they needs, as well as increasing impulse buying (Tendai et al, 2009). So, it 12
will guide Auto Bavaria to improve the store atmosphere in order to gain satisfied customer’s experience and also profits as well.
1.7.2 Au to Dealership (Au tomotive) I ndustry
Not only for the customers and Auto Bavaria itself, these researches also bring a significant to the automotive industry out there. With the presence of this study, other automotive companies can take it as reference for their company’s research and development activities (R&D). Since the literatures about this topic are only few of them, it really can help those automotive industries to make analysis of store atmosphere as a secondary data.
Besides that, by looking the research analysis and description, other companies also can make this research as a source to make store atmosphere improvements, enhance the store appearance, and know how it bring impact to the customer experiences through the customer evaluation and know what are the customer want exactly (Kumar et al, 2010).
In addition, by conducting this research, we can know that the development of the automotive industry by observing the demanding from the customer, the products and brands innovation, the competitiveness between the automotive companies and so forth (Zakuan, 2009).
1.7.3 Customers
When it comes to customer, it is indeed that they will be happy and feels comfortable with the appealing store atmosphere (Turley & Milliman, 2000). Especially when having a good store atmosphere, it can help the customer to make a right decision with calm and relax mind and also having a good time to think at a comfortable sofa.
According to Turley and Milliman (2000), surrounding with a good lighting, which not too bright and also not gloomy can create a nice atmosphere and also effect the 13
customers’ feeling as well. Besides that, compatible background music also helps the customer to relax while selecting their dream car and enjoy their purchase and service. Moreover, a nice color combination with the choice of elegance color, and of course not a colorful store can bring the mood of exclusivity among the customers. Then, the companies can tell message and stories through their dynamic visual merchandising in the store and thus, from having all the combination of store atmosphere factors can create a perfect store environment. So, it directly will give a great impact to the customer who visit Auto Bavaria and give them some different experience which is like entering the world of class.
1.8
Scope of Study
The scope of the study is basically to identify the store atmosphere factors which are lighting, background music, color, and visual merchandising towards customer experience and behavioral intention at Auto Bavaria. There were 170 questionnaires to be distributed to the customers at Auto Bavaria at Glenmarie, Shah Alam who visited and made purchase in the luxury store.
1.8.1 Gap of kn owledge
To relate all the possible contribute factors of store atmosphere (lighting, background music, colour and visual merchandising) in one single setting to investigate their influences on the customer experiences and also from the customer’s experience to the behavioral intention, which demonstrate the significant gap of knowledge.
In order to reduce the gap, there were four (4) identified hypotheses that will evaluate the influence of store atmosphere factors toward the customer experience and their behavioral intention. The first hypothesis is whether lighting is significant or no significant with customer s’ experiences. Second is whether background music is signif icant or no significant with customers’ experiences while thirdly is whether color in the store is significant or no significant with customer perceived experience and then fourth hypothesis is whether there are relationship between store visual merchandising and customer experience and last but not least the fifth hypothesis which is the second 14
model is whether customer experience has a significant relationship with behavioral intention or not.
1.9
Limitation of Study
1.9.1 Respondents
Large samples tend to generate better result and minimize the probability errors (Osborne, Jason, & Anna, 2004). In this study, questionnaire survey is conducted based on 170 respondents which are limited and unable to produce a reliable result. The potential that the respondents not return and return b ut send defective questionnaires are high. Furthermore, the researcher select only 170 respondents due to the limited budget as a full time student and time constraint since the period to finish up this research are only 5 months. Besides that, some respondents might misunderstand those questions and did not follow the instruction that will in turn affect the results of study. By using five-point Likerttype scale for the questionnaire, respondents may confuse and not be able to express their additional comments and opinions for this study. Moreover, the potential that the respondents did not read the questionnaire properly are high since the researcher provides a lot of questions for the respondents to answer.
1.9.2 Sampli ng L ocation
In this study, sampling location is a limitation to get a respond from the respondents. The sampling location for the survey is made at Auto Bavaria which is the headquarter that located at Glenmarie, Shah Alam. Auto Bavaria Glenmarie was chosen as the sampling location because the Glenmarie is the biggest branch compared to the other four branches. Therefore, the branch is the representative of all Auto Bavaria. In despite of that, it may affect the result since respondents may have different perceptions and opinions due to other different branches they visited such as Auto Bavaria Sungai Besi, Auto Bavaria Kuala Lumpur, Auto Bavaria Johor Bahru and Auto Bavaria Penang. 15
Furthermore, there is a possibility of a cultural and lifestyle bias playing a role in the outcome of the study.
1.9.3 Secondar y Sour ces
Limited information sources and databases can be searched through for this topic of the study. Moreover, some journals and articles may require payment. Due to limited budget, researcher was unable to access those journals or articles that need to be subscribe. In fact, there were only few local researches conducted the research that are applicable to our study. Most of the journals and articles we referred to were based on the topic in foreign countries. Thus, the findings of some journals or articles may not applicable in this research. Thus, researcher had to find more journals to combine and support for validity of the study (Labaree, 2013)
Zeynep & Nilgun (2011) noted that most of the studies only focused on one store atmospheric stimulus or doing it as general research instead of examine few and specific factors together at one time. Therefore, those literature reviews may not be appropriate and slightly different for this research since it mostly discussed different type of store itself.
Recently, this topic which is the study of store atmosphere seems to be quite popular among researchers and retailers from different sectors and countries. For example, Sang Lin Han, (2005) focus on the Korean retail market, Tsepo Peter, (2009) have research on convenience store, Choong Rong Han, (2011) a study about the clothing store, Katelijn Quartier, (2008) a research about food retailing, Wan Asyila, (2013) have study a research about the MPH Bookstore, and Han Shen Chen, (2010), a study of chain store supermarkets.
However, there are only few and limit researches that focus on the automotive dealership industry. So, it is become the researcher limitation because different types of stores must provide different combination of various factors of store atmosphere to support the overall business of those stores. Since the auto dealership industry was been 16
not specifically focus in previous research, so in this research, the study will use the relevant store atmosphere factors based on the automotive industry to interpret its effect on experiences and also the behavioral intention. Therefore, it would be more accurate to predict the factors that can give influence on store atmospheres which automatically affects the customer experiences and behavioral intention.
In fact, some literature review for this study is limited especially on the color and visual merchandising factors. Many researchers only concentrated their study on the areas of background music and lighting. Limited source for these two factors which are colors and visual merchandising make it difficult for researcher to have a detail investigation and also have a constraint to make comparisons between the current study and the previous one. Although many studies mentioned background music and lighting as one of the variables to examine, those researchers seldom linked these factors to experience and behavioral intention. There were not many researches and latest study regarding customer experience. In despite of that, background music, lighting, colors, and visual merchandising will be added as important elements in store atmosphere factors for the industry and relate with experience and customer behavioral intention. On top of that, this study had been done based on Malaysia’s automotive retailing industry. From the previous studies, many researchers did their studies using the retailing industries of foreign countries such as Korea, China, India, United States, Greek, Hungary, and so on. Therefore, when local retailers apply the results of those studies, sometimes it might be inaccurate and inappropriate to adopt into each particular type of retailing industry especially in this case. It is because different countries have different culture and perspective. The way of their thinking also are not same as Malaysian. Using wrong application on store atmosphere may lead to reduce the research quality. Therefore, the study regarding the issue is needed in depth on this area based on Malaysia’s retail industry to help Auto Bavaria understand well about the impact of store atmosphere on customer experiences.
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1.10
Definition of Term
1.10.1 Lighting
Lighting can be defined as the kind of igniting or illuminating, the arrangement of lights occurs usually by specific equipment in order to achieve various different of effects. Besides that, lighting is also can refer as th e functional use of light to achieve a practical or aesthetic effect. Lighting includes the use of both artificial supplies light such as lamps and light fixtures, as well as natural illumination by capturing light from the sun.
1.10.2 Background M usic
Background music is the art of sounds arrangement in a time so that it can produce a continuous, unified, and evocative composition, as through melody, harmony, rhythm, tempo and timbre. It is also refers to various styles of music or also known as soundscapes originally intended not to be actively listened to. It is also can be said as supplement or additional features that are apply in a particular situation or event. Background music that is usually played at a low volume and it is not the main focus to be listened by the audience.
1.10.3 Color
Color and also known as hue is the element of art that is produced when light, striking an object and it is reflected back to the eye or in other words is the property possessed by an object of producing different effects on the eye as a result of the way it reflects or emits the light.
1.10.4. Vi sual M er chandising
Visual merchandising are includes the combination of products, atmospheres and spaces into a motivating and engaging displays and arranging goods and merchandise assortments within a store to improve the layout and store appearance.
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1.10.4 Customer Ex per ience:
Customer experience is the sum of all experience a customer has with a supplier of goods or services, over the duration of their relationship with the supplier. This aspect includes the customer’s awareness, discovery, attraction, interaction, purchase, use, transaction, observation and participation.
1.10.5 Customer Behavior al I ntenti on
Customer behavioral intention can be defined as a course of action, aim and concern that a consumer brings to deal on a current or future purchase activity. It is known as the theory of reasoned action which is a model for the prediction of human behavior, feeling and attitude. It is also a cognitive plan to perform a behavior that has created through a choice or decision process that focuses on beliefs about the consequences of the action.
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CHAPTER 2: LITERATURE REVIEW 2.0
Introduction
This chapter presents the overview of current literature in the frame of the presented research problem. Each of the bodies of literature is discussed which is focus on the specific nature of the relevant literatures that relates to this study. A literature review is a step-by-step process that involves the identification of published and unpublished work from secondary data sources on the topic interest, the evaluation of this work in relation to the problem and the documentation of this work (Sekaran & Bougie, 2009, p.38). Therefore, in this study, each independent variables and a dependent variable will be reviewed on previous studies that are related to this topic.
2.1
Review of literature
2.1.1
Store Atmosphere
According to Levy and Weitz (2009), store atmosphere is referred as the attribute that aims to intensify the store environment with the combination of different cues such as lighting, colour, background music, layout, space, design and scent. The store atmosphere seems able to affect customer feeling and experiences. Besides, According to Milliman, (1986) categorized atmosphere as a term that is used to explain customer feeling towards the shopping experience which cannot always be seen. When the customers receive fantastic experiences while visiting a store, then, they will pass a positive word of mouth to their closed peoples such as friends and families. The percentages of the customer to come back to the store are also high since they were comfort with the store environment. In addition, Kotler (1973) was the first one that used the “atmosphere” term described it as the design of store environment that can stimulate buyers’ emotions and ultimately affect their purchase behaviour. Developing a strong positive atmosphere has become important to the companies to sustained competitive advantage. Birtwisle and Shearer (2009), has stated that research 20
about the store atmosphere has allowed retailers to create positioning strategies, develop store image and enabled them to differentiate their stores in terms of the products and services on offer. A dynamic store atmosphere also typically form a positive impression of a retail store through various method of communication such as word of mouth, personal experience, advertising, recommendation and so on (Estelami et al,2006). Sirgy et al. (2000) suggest that a good combination atmosphere factors in a store can create a favorable consuming context and generate positive perceptive emotions about the store among consumers. Store environmental factors can influence the subjective feelings experienced by consumers in the store and influence the shopping experience, consumption amount, perceived quality, satisfaction, and shopping value (Babin & Attaway, 2000). Therefore, a pleasant store atmosphere can affect the time consumers spending in the store. Based on Hu & Jasper (2006), store atmosphere also give impacts on the customer minds. From years ago, store displays were mainly used only for the promotional purposes. However, as customers nowadays became more sophisticated and knowledgeable, store managers have discovered new roles for effective atmosphere. The latest, store atmosphere play roles like communicating product information and store image, assisting consumers in making purchase decisions and create exiting shopping experience. Moreover, customers perceived that they would be more likely to come a store that have more in-store displays together with high graphics dimension and user friendly meaning (Mitchell & Oppewal, 2009).
2.1.2
Lighting
Lighting can be referred as the act of enhancing or illuminating, the light arrangement to create particular effects, an effects occurred by the arrangement of lights, and the way light falls upon a face, objects, products etc, in a various situation (Freyssinier et al,2006). Based on Taylor (2006), lighting is a key design element that contributes to the identity, comfort, and visual quality of a retail store. Reports from Varley (2006) stated that, a high contributor to an appeal store atmosphere is the lighting used. For 21
many specialty stores, the lighting design reflects the store’s image and as a tool to feature the store’s merchandise and business selling strategy According to Hoyle (2003), a successful lighting at any retail store and business environments has the potential and probability to dramatically affect sales since lighting can increase the floor traffic, create visual interest, bring effect to the color of merchandise and able to direct the customer going through the store either deeper. Based on Perney (1974), ideal store lighting can draw the customer’s attention to observe the products particularly. Mehrabian et al (1974), also stated that the lighting which also one of the environmental psychology can bring impact to the customer’s emotion and experience. Usually, retailer provide a bright lighting in their store because, with this conditions, products are more often examined and touched compared to the ‘dim lighting’ conditions. Lighting also can influence the attractiveness of products in a store (Magnum, 1998). In the customers’ eye, products with high light levels were found to be more captivating than products with lower light levels. Donnovan et al (1994), also stated that a bright light and compatible background music can increased consumer arousal and their enthusiasm. For the perspective of Vaccaro (2008), proper use of light is another method to attract customer attention on specific products, capture certain experience and also hide any retail weakness and error. Occasionally, hiding some parts of store to ensure those the dark areas are a strategy to maintain good store image. In fact, store lighting can influence the consumers’ perception, emotion, cosiness and experience of store image (Banat, 2012). Besides, lighting also can give impact on consumer’s cognition, value and at last the purchase decision making. Lighting in a store did not only focus on the light itself, natural lighting from the glass windows also plays its own role in a store. In automotive industry, most of the retailer chose to have more natural lighting by having a large glass windows setting in their store. People increasingly prefer naturalness as possible, which can be reflected in important aspects like quality (Zumtobel, 2012). In this case, Auto Bavaria must to avoid a fluorescent light because it really can create a low image of it since the 22
company involve in luxurious sectors. The company already applies the combination of natural lighting, incandescent and LED type of lighting. The combinations succeed to indicate the store elegance and exclusivity. For Pete (2013), incandescent light fixtures are useful especially for put the customer attention to a certain goods or section in the store. On the other hand, LED light fixtures are relatively new in retail industry. It has many advantages compared to the traditional light fixtures since it is more energy efficient, smaller and flexible to placed anywhere in the store (Pete, 2013). A study from Freyssinier et al (2006), specialty stores like Auto Bavaria itself are rely on glass windows in order to show the expensive and create the interest from the customer.
2.1.3
Background M usic
Based on Yalch (1993), background music is the art of arranging sounds continuously, unified, and evocative composition through the melody, harmony, rhythm, and timbre. It consists of various style of music and soundscapes primarily intended to be passively listen and hear by the store visitor. There are many studies show that background music in a retail store can inspires customers to buy and make their shopping experience more pleasant. A store can simply create the mood, able to stimulate the customer’s mind with install the right music. Since years ago many retailer set a background music in their store because the ability to enhance the store atmosphere. Besides, music is popularly known as the influence factors of customer’s emotion and behaviour (Milliman, 1982). Compatible background music means that the store played the right music at the right time which is depends on situation and season to create positive impact on the customer experience (Ruchi et al, 2010). A lot of studies state that background music is capable of evoking emotional state, leaving a lasting impression and behavioural responses in consumers (Matilla & Wirtz, 2001). Based on Kulkarni (2012), retailer should carefully select music genre, style and tempo from their marketing toolbox. Morrison (2001) stressed that playing classical 23
background music can influence the decision making rather than the product itself. It also can create prestigious store atmosphere, leading to a customer perception of luxury merchandise. According to Milliman (1982), instead of arousing the customer’s feeling, background music also one of the effective tools to communicate with customers in non verbal way. Playing a happy and upbeat background music can creates customer’s enthusiasm towards particular products while or slow music able to create high purchase decision and intention (Alpert et al, 1988). In Auto Bavaria, it is not appropriate to play a loud music because the customers need a calm situation in order to think and make a right decision when dealing and purchasing something expensive.
2.1.4
Color
According to Kouchekian (2012), many past researchers have been carried out a study about the physiological effects of color towards the customer. It is disappointed when there are still many retailer did not aware or did not know the use of color psychology in their business. Color has a powerful subconscious effect on every part of human lives (Zalanski, Paul & Fisher, 1989). Being understood about the meaning of color especially in business gives the store manager an invaluable tool to create a successful business by do the marketing, promotional efforts and receives best customer experience and feedback. Color can be defined as the visual perceptual property corresponding in humans to the base categories that we called primary colors which are red, blue, and yellow (Bellizzi, 1992). Color derives from the spectrum of light interacting in the human eyes. With colors the retailers can set mood, attract attention, and also make statement. Colors also can use to energize and also to cool down. By selecting the right color scheme, the store manager can create an ambience of elegance, warmth and tranquility and convey an image. So, to make it simple, color can be the retailer most powerful design element if they learn to use it effectively (Kemmis, 1998). Auto Bavaria prefers 24
the earth color tone as its theme of color. The colors draw from a palette color such as browns, tans, warm, grey white and green. The advantage of having a neutral or earth store color, it can be adapted to any style, from traditional, country and contemporary. Earth tones and the warmth of wood and stone and along with the patina of various metals are the set of the harmonious mood (Annemiek, 2008). By using a neutral color as the store background, it can facilitate the store manager to decorate the store when it come to the seasonal month such as Raya celebration, Chinese New Year, Deepavali, independent day, Christmas and more.
2.1.5
Vi sual M er chandising
Based on Kouchekian & Gharibpoor (2012), Visual merchandising plays many important roles in retail sector. It includes the activity of enhancing the products presentation, support brands, increase store traffic and sales and adds visual excitement, by having strategic arrangement and illuminated the focal destinations in a store atmosphere. Based on Pillai et al (2003), visual merchandising is the presentation of a store and its merchandise to the customer through the teamwork of the store’s advertising, display, decoration, merchandise arrangement, special events, showroom coordination, and merchandising departments in order to sell the goods and services offered by the store. Visual merchandising is becoming more and more important in giving a store competitive edge, since many stores share merchandise sources and therefore carry similar items. In other words, good visual merchandising gives the merchant an invaluable competitive edge as well as defining a store’s personality in today’s marketplace (Mills et al, 1995). Based on Moormann (1995), visual merchandising must attract and hold the passerby until it can arouse the interest from the customers. If a display is sufficiently surprising and unusual, a potential customer will view it more closely. Kim (2013) said that visual merchandising can heighten the store images and increase sales efficiency. In order to have a good visual merchandising, the retailer must establish a different strategy such as 25
create an enjoyment store atmosphere and organize the merchandise in the store effectively. Visual merchandising is integrated with the total planning and operation of a store. In addition, top level executives such as store planning director and the visual merchandising director who are the ones that responsible to meet with the corporate executives of a company to determine such things such as the corporate image, changes of physical facilities, seasonal projections and various other retailing innovations (Paul et al, 1995).
2.1.6
Customer experiences
Every business provides a customer experience. That experience may be good, bad or indifferent. Customer experience can be defined as a sum of all experiences and perceptions a customer has while purchasing goods or services with a retailer based on all interactions and thoughts about the business. In other words, it is an individual experience whether conscious or subconscious while having a transaction in a store (Gilboa et al, 2003). Customer experience consists of awareness, discovery, attraction, interaction, purchase, communication, and emotion. When a retailer success to deliver and create different experience to the customers, the probability for the customer to spend in the store are high. Besides, experience also can inspire loyalty to the customers (Richardson, 2010). Based on SAS Institute (2013), customer experience refers to the practice of designing and reacting to customer interactions to meet or exceed customer expectations and thus increase the customer satisfaction, loyalty and advocacy. Good customer experience management can strengthen the brand and store preference through different experiences, boost revenue with incremental sales, improved the customer loyalty through valued and memorable store atmosphere, and also can lower the cost by reducing dissatisfied customer.
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Based on Johnston & Kong (2011), customer experience also a phrase used to describe the relationship a customer has with a business. Customer experience also an integral part of customer relationship management (CRM), and it is important to company because customers who have positive experiences tend to become repeat and loyal customers of a business. Many previous studies stated that whatever the product or service that a business organization offer to the customer to buy or receive, that customer will have the experience whether it good, bad or indifferent (Johnston & Kong, 2011). There are an issue that companies cannot fully control experiences, because experiences inevitably involve perception, feeling, emotion, and unexpected behavior from the customers. According to Yoo, C.J., Park J.H., & Maclnnis D.J. (1998), to deliver customer experience, the store manager has to know the customer better than ever before. That means creating and maintaining complete customer profiles that help managers to understand and measure the customer’s experience when dealing with a business transaction. The more relevant the business’s offer, the closer the relationship between the business and the customer (Yoo et al, 1998).
2.1.7
Customer Behavioral I ntention
Customer behavior intention is driven by the combination of attitude toward the purchase behavior and individuals’ beliefs and motivations toward the customer behavior (Burnkrant & Page Jr, 1982). In retail perspective, the intentions usually will be determined by the customer willingness to stay longer in the store, their willingness to repurchase in the future and give the other peoples recommendation and good word of mouth to visit and purchase at the store (Baker et al, 2002). A model suggested by Mehrabian & Russell (1974), which is the S-O-R model, it is about the customer behavioral response are from the customer’s intention to approach or avoid a certain environment and it is also called as approach-avoidance behaviors. Approach behavior occur when the customer show a positive response such as willing 27
to stay longer in the store, explore, interact, identify in the environment, having a good impression on the environment and intend to return and come to feel the environment again (Han, 2011). A previous study from Grewal et al (2003), there are important relationship between store environment cues, store choice criteria and the store patronage intention. As state by Grewal at al. (2003), they have identified several amount of control over factors that can contribute to consumer’s patronage intention. The factors include the social factors, design factors and also the ambient factors (Grewal, 2003). Store managers can creatively design the layout of the store and displaying the merchandise in attractive way to give positive reaction and perception from the customer when being at the retail store. In addition, the store manager also can enhance the store’s atmospherics through visual communications, lighting, colors and odor (Kouchekian et al, 2012). Consumer behavior is a study about the way or attitude of the consumer when it comes to purchase or spending pattern such as how, what, when, and why they buy. It is a combination from various elements which are psychology, sociology, socio psychology, anthropology and economics. Besides that, it attempts to understand the consumer decision making process. The study also includes the consumer characteristics such as their demographics, psychographics, and behavioral variables in order to understand the consumer’s want (Sangvikar & Katole, 2012). Based on Kang et al (2010), interesting environmental factors such as pleasant background music, fresh scent, bright light and soft fabrics evoke pleasure and arousal which is lead to patronage intention. Behavioral intention also includes the consumer willingness to buy, spending more time and money, revisit intention, having thought to recommend other peoples and trusting the environment component values (Wakefield & Brodgett, 1996). Behavioral intention become a strong predictors of actual behaviors have thoroughly been researched. Based on Kang et al (2010), 45% consumers are driven to visit a retail store by recommendation by other peoples such as family and friends.
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CHAPTER 3: METHODOLOGY
3.0 Introduction
This chapter is focused on the approach of the study. Chapter Three will have discussion on research design, data and information collection methods, the design of the questionnaire, sampling design and so forth. On the other hand, the methods of data analysis which consists of factor analysis, reliability test, descriptive statistics, mean aid on development of hypotheses for this study.
3.0.1 Research Design
Research design is the important step to gather and analyze the imperative data and assist to find the location of the study, sample size, population and so on. (Sekaran & Bougie, 2009). It also includes the identifications of the four independent variables in this research namely as lighting, background music, colour, and visual merchandising.
3.0.2 Qu anti tative Design
Quantitative research will be applied based on the nature of study to gather a representative data from the targeted respondents. To better understand the impact of store atmosphere on customer experience and behavioral intention through several factors that have been selected, researchers have often focused on quantitative approaches by (Turley and Milliman, 2000). It is used to quantify attitudes, opinions, expectations, experience and behavioral intention of the customers that have been visited to Auto Bavaria. The advanta ge of using quantitative research is that it produces reliable data that are usually qualified to some large population. In this study, online and paper survey are used to collect the data from the respondents (Wyse, 2011).
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3.1 Data Collection Methods
In this study, there are two ways in gathering data which is through primary and secondary data. 3.1.1 Pri mary Data
According to Naresh (2010, p. 132), primary data will be organized for the specific purpose of addressing the problem on hand. The primary data that will be used is questionnaire survey whether by online or manual. While distribute the questionnaire, the researcher need cooperation and clarification from the respondents. Besides that, primary data refer as first hand information or data obtained originally by the researcher on the variables of interest for the specific purpose of the study (Sekaran & Bougie, 2009, p.180). The questionnaires were distributed to the respondents whom their respond and answers may differentiate on specific issues regarding to the topic. Questionnaires can be efficient data collection mechanism of what and how to measure the selected variables. Those questionnaires were distributed personally to the respondents.
3.1.2
Secondary Data
According to Sekaran & Bougie, (2009, p.184), secondary data refer to information gathered by other party that already conduct a previous study. It helps researchers to get better understand and define the problems. To obtain secondary data, the previous researchers’ study can be obtained through online journal databases such as ProQuest, EBSCOhost, Emerald Journal, Malaysian Thesis and other available databases which are available in Universiti Teknologi MARA (UiTM) online databases. Furthermore, the relevant articles and other sources through internet and online library are aiding in the research. It requires inexpensive cost, time consuming and energy to the researcher. The advance of technology helps a lot in finding resources especially the Internet.
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3.2 Sampling Design
There are five steps under sampling design which are determining the target population, setting sampling frame and location, deciding the sampling elements, selecting sampling techniques and determining the sampling size of respondents.
3.2.1 Target Popul ation
Target population is the group of people where researcher is interested in analyzing to get relevant information for research purpose. The population refers to the entire group of people, events, or things of interest that the researcher wishes to investigate. (Sekaran & Bougie, 2009, p.262). On the other hand, convenience and simple random sampling has been chosen in order to select the customer in Auto Bavaria Glenmarie which is the respondents in this study. Convenience sampling a method of finding the data by selecting people because of the ease of respondent volunteering or selecting units because of their availability and easy access (Sedgwick, 2013). While simple random sampling is one of the probability sampling which is randomly selected sample from a larger samp le or population (McCullagh, 2007).
3.2.2 Sampli ng F rame and Sampli ng L ocation
According to Sekaran & Bougie, (2009, p.267), the sampling frame is a (physical) representation of all elements in the population from which the sample drawn. In this study, the sampling frame will be the customers that are already made any purchase or the potential customer at Auto Bavaria Glenmarie. In fact, the sampling location for the survey is the various sales and customer area in Auto Bavaria Glenmarie such as the sales and service area of BMW cars, Motorrad (Motorcycle, bike, & scooter), MINI Cooper cars and after sales areas, parts, accessories and gift areas, customer services department, car’s service and so on . Auto Bavaria Glenmarie, which is a headquarter branch was selected as the representative of all Auto Bavaria’s branches (Sg. Besi, Kuala Lumpur, Johor Bahru, Penang) in Malaysia. Auto Bavaria Glenmarie has the advantage to do the customer survey 31
since it is headquarter, the biggest and also success to attract a lot of customers compared to other branches. The store is located at Sime Darby Auto Bavaria Sdn Bhd, 3A, Persiaran Kerjaya, Taman Industrial Park, Section U1, Glenmarie, 40150 Shah Alam, Selangor.
3.2.3 Sampl ing Elements
The respondents in this study referred to customers who perceived the service at Auto Bavaria Glenmarie Branch. Total of 170 populations range from 20 to 70 years old were selected in this study. Besides that, it also includes foreign respondents since Auto Bavaria’s market are wide and international. The reason to choose these sampling elements are because they are the main subject in this research since the research topic is about the store atmosphere that can be experienced by the customer itself and in fact there are only few obstacle in language issues since most of the customers understand and using English very well.
3.2.4 Sampli ng Techn iqu e
In this study, convenience and simple random sampling technique was selected. To assess customer's perceptions on store atmosphere factors at Auto Bavaria, researcher has to get organized sampling frame. To accomplish this, researcher will go through company’s customer records and history to identify the customers’ information such as email, home or office address (Knottnerus, 2003). Since the researcher will distribute the questionnaire manually to the respondent, convenience sampling is the best sampling technique where subjects are selected because of their convenient accessibility, availability and proximity to the researcher (Crossman, 2013) Then, researcher has to draw the sample. Decide on the number of respondents researcher would like to have in the final sample. In this research, researcher want to select 170 respondents to survey and that there were thousands customers over the past 12 months. Now, to draw the sample, researcher has several options. As stated by Chambers & Skinner, 32
(2003), a mechanical procedure is very feasible, effective and with the development of inexpensive computers there is a much easier way. Here is a simple procedure that is especially useful because researcher already have the customer’s information on the computer. Many computer programs can generate a series of random numbers. It can be done through EXCEL spreadsheet. Researcher can use the function =RAND() in formula text box which is EXCEL's way selecting random sample. Simple random sampling is simple to accomplish and is easy and a fair way to select a sample, it is reasonable to generalize the results from the sample back to the population (Knottnerus, 2003).
3.2.5 Sampl ing size
Before distributing the real questionnaire to the selected respondents, researcher needs to pre-test the questionnaires to the other people such as friends and family members. It is important to ensure the respondents understand the questionnaires and to avoid any misunderstanding issues occur in the future. Researcher distributes 5 questionnaires for this pre-test (Israel, 2013). Besides, the researcher also conducts a preliminary study which is an activity of conducting a simple interview about the knowledge of store atmospheric attributes. The purpose of the interview is to know how far the comprehension knowledge of the customer regarding to the atmospherics factors and it is important when the researcher want to construct a questionnaire (Lennora, 2013). If any misunderstanding about the questions, then researcher need to redo the questionnaire until it suits with the purposes of the study. A total of 170 questionnaires were distributed and 156 questionnaires were collected. It means that, 92% rate of response the researcher success to collect in this survey. Israel (2009) clarified that factors such as cost are critical in determining sample size. Thus, the study will only conducted 170 questionnaires because of the limited budget and also problem of the time constraint.
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3.3 Research Instrument
Questionnaire survey has been used in this study. Questionnaires are defined as the series o f questions aim to gather prompt and accurate information from respondents. Thus, in order to perform a good research, a good questionnaire must be designed. Hair, Babin, Money, and Samouel (2003) mentioned that effectiveness and high response rate are the reasons for researchers use questionnaire widely to collect primary data if the population of respondents is well-educated.
3.3.1 Questi onnai re D esign
There are four basic question-response formats used in order to design a questionnaire which are open, close-ended, scale-response and opinion type of question. According to Hair, Bush, and Ortinau (2006), close-ended questions can be defined as a set of answers that provide by the researcher for the respondent to choose. In this study, researcher decided to apply close-ended questions because it can save respondents’ time and effort when answering the questions. Respondents can easily pick up any answers from the five-point Likert-type scale. The questionnaire was structured by simple English words and sentence for the respondents easily understand each of the question ask and thus it will contributing of getting accurate answer. The questions is direct, not confusing and only consists of one element in each statement. The researcher attaches the sample of questionnaire in the Appendix. In the questionnaire, the respondents will answer some general question provided in the Section A. While in Section B and C, there are six part of question that consist different type of variables. The respondent will rate the questions by using five-point Likert-type scale ranging from 1- strongly disagree to 5- strongly agree. Section D is about respondents’ demographic information such as gender, age, nationality, race, academic qualification, and status of employment. While in Section E, the researcher gives the opportunity to the respondents to give their comments and opinion about the store’s atmosphere. In Section B, consists of questions that related to four (4) independent variables tested in this research. The independent variables are lighting, background music, 34
colour and visual merchandising. Lastly, Section C is the questions about the customer experience and their behavioral intention at Auto Bavaria based on store atmospheric attributes stated above. All the provided questions are set in multiple choices to facilitate the researcher get a specific response. The researcher also must be assured that all the respondents’ responses and information are private, confidential and undisclosed no matter any situation happen.
3.4 Constructs Measurement 3.4.1 Scale Defi ni tion
Before starting the process of collecting data, the researcher will study carefully which four (4) types of scale which are nominal, ordinal, interval or ratio will be use in this research (Stevens, 1946). In this study, the researcher only use nominal and ordinal in Section A and D. For Section B and C, interval types of ratio are used. Questions in Section B and C are created to test the independent, moderating and dependent variables. Nominal scale is the lowest form of measurement among other scale. Usually, researcher used with variables that are qualitative in nature rather that quantitative. This type of scale referred as a way of categorical data or grouping behaviour, where the numerals are used only as labels, type numbers, identifiers, words or letters (Grace, 2012). In addition, a nominal scale also does not involve with any mathematical attributes of magnitude, equal interval, or absolute zero point. It merely mutually exclusive categories and often used as the tool to measures the percentage (Pagano, 2004). On the other hand, ordinal scale becomes the next higher level of measurement after nominal scale and actually ordinal scales are more accurate compared to nominal scale. As a way of quantification, this type of scale was structured by a set of rankings and the categories of ordinal scale must have a logical or ordered hierarchically to each other which are the most significant characteristics (Brown, 2011). Based on Cliff & Keats (2003), an ordinal data can be use as non-parametric statistics which is important to do the correlation by measuring the association of the variables and it include median, mode, rank order
35
correlation and non parametric analysis of variance. The examples for this type of scale are the rank of education qualification and the social economic class (low, middle or high). Interval scale can be referred as a measurement scale of data where the difference between two values are meaningful and can be quantified (Stevens,1946). According to Price & Oswald (2006), interval scales also has the same rank characteristic as ordinal scales, but interval scales show the differences between each data point which mean that the difference between 1 and 2 on an interval scale is the same as the difference between 4 and 5, or 8 and 9. In interval scale, the research variables and element can be evaluate by those measurement such as satisfaction, level of agreement, frequency, and subjective perception of temperature (Kemp et al, 2012). In the perspective of psychology, a respondent will give a rate to a statement on the Likert scale in which to know the respondent’s evaluation of agree-disagree with the statement.
3.4.2 Sour ces of M easur ement
In this questionnaire, there are seven constructs namely lighting, background music, color, visual merchandising, customer experience and behavioral intention. The scales were adopted from previous study due to the relevance of literature, context and compatibility and reliability. The researcher use five-point scale as the response format with assigned values, ranging from 1- strongly disagrees to 5- strongly agrees.
Table 3.1: Sources of Measurement No.
Construct
Adapted from
1.
Lighting
Freyssinier, J.P. Frering, D. Taylor, J. Narendran, N. & Rizzo, P. (2006) Quartier, K. Christiaans, H. & Van Cleempoel, K. (2008) Choong, R.H. Kuang, S.L. Low, B.Y. Yap, S.F (2011)
36
3.
Background Music
Areni,C.S. & Kim, D. (1994) Alba, J.W. & Hutchinson, J.W. (1998) Yalch, R.F. & Spangenberg, E.R. (2000) Morrison, M (2003)
4.
Color
Singh, S. (2006) Annemiek, V.E. (2008) Kumar, I. Garg, R. & Rahman, Z. (2010) Bellizi, J.A., Crowley, A.E., & Hasty, R.W. (2001)
5.
Visual Merchandising
Kim, J.S. (2013) Kouchekian, M. & Gharibpoor, M. (2012) Pillai, K.R. Iqbal, A. Umer, Maqbool, A. & Sunil, N (2011)
6.
Customer Experience
Johnston, R. & Kong, X. (2011) Pantano, E. & Laria, G. (2012) Yoo, C. Park, J.H. & Maclnnis, D.J. (1998) Gilboa, S. & Rafaeli, A. (2003)
7.
Customer Intention
Behavioral Baker, J. Parasuraman, A. Grewal, D. & Voss, G.B. (2003) Sangvikar, B.V. & Katole, H.J. (2012) Chen, H.S. & Hsieh, T (2011) Gillani, F. (2012) Kang, E. Boger, C.A. & Back, K.J. (2010)
37
3.4.3
Th e sur vey instrument s
Table 3.2: The Survey Items of Construct Multi-item of Scale Measure
Lighting
No. of Items
5
Sample items
Background Music
5
Color
5
The type of lighting used is compatible with environment of the store. The lighting used in the store allows me to examine the products clearly The lighting level of brightness makes me comfortable being in the store. The lighting used in the store looks exclusive. The combination of natural lighting in the store is convenient.
The choices of the music genre are pleasant to hear. For me, the volume of the music background is appropriate. I really enjoy the rhythm of the music background in the store. The tempo of the music background makes me want to stay longer in the store. The music background played in the store can enhance my interest. Choices of the theme colors at the store successfully to create attention. The colors apply in the store shows a trendy coordination. The color of the furniture and its fabric also looks elegance. For me, the choices of the color combination create a good emotion. The color used in the store able to create desires to purchase.
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Visual merchandising
5
Customer experience
5
Customer Behavioral Intention
5
I am satisfied with the merchandise presentation in the store. The creative props used in the store give an inspiring idea to me. For me, the displays used in the store are very convincing. The store decorations also create an evocative presentation. The store visual merchandising success to create confidence in me. The lighting in the store gives an impact to me. The background music creates an enormous experience to me. The colors in the store also bring a fascinating experience to me. The presentation of the visual merchandising success in creating an impressive experience. The atmospheric attributes success to create a positive image in this store. The atmospheric attributes in the store help me to make a decision. The store atmosphere makes me comfort to stay longer in the store. The atmospheric factors in this store are successful in putting trust in me. I would like to recommend other peoples to buy their car in this store. I would like to purchase again in the future.
3.5 Getting the data for analysis
Once researcher gets the data through questionnaires, it will be analyzed, keyed in and edited (Sekaran & Bougie, 2009, p.306). In order to produce data that have the quality standard, it will go through several processes. First, the researcher will code the data by labelling a number to the participants’ responses for avoid any confusion and then 39
facilitate the researcher to fill up and categorize it in SPSS (Sekaran & Bougie, 2009, p.306). For example, in Section D, the respondent profile for gender, “male” will be coded as 1 and 2 for “female”. SPSS often used by the government surveyor, health researchers, university lecturer, corporate and business researcher to assist the interpretation of data collected (Sekaran & Bougie, 2009, p.308). The data will go through editing process after coded and filled in the database. For example, if any blank responses and inconsistently data need to be managed, check and do follow up. Next, the data will be transformed from the original numerical representative value to another value. (Sekaran & Bougie, 2009, p.310). So, in order to avoid problems in the next analysis process, data will be corrected.
3.6 Data analysis
Data analysis is an important step that should be monitored to avoid any error that may affect the results. The researcher has to determine if the characteristic and quality of data have been met a standard analysis. Researcher can get the result from SPSS after key-in and interpret the collected data from the questionnaires and explained by chart or table (Siers, 2010).
3.6.1
Descri pti ve An alysis
According to Sekaran & Bougie (2009, p. 105), Descriptive research involves transformation of raw data into a form that would provide information to describe a set of factors in a situation. Descriptive study requires a sample of hundreds or thousands of subjects to generate an accurate relationship between selected variables. Descriptive statistics are used to explain the basic features of the data and present quantitative description in a manageable form. The data will be reduced because it provides simple summaries of sample or measures. Descriptive analysis is useful to explore and check data before performing statistical test and data interpretation. Descriptive research is more efficient and able to obtain information with reference to 40
test for hypotheses. Besides that, researchers also can know the research problem and able to clearly define what should be measured on this research. It includes measures of frequency, central tendency such as mean, median and mode and measures of dispersion and variability through standard deviation, variance, kurtosis and skewness (Siers, 2010). The responses receive from Section A, B, C and D in the questionnaire will be interpreted by percentage. The central tendency of question in Section A and D measured through mean, median, mode and standard deviation. Histograms, pie charts, bar chart and line graph will be used for visually exploring data and statistics (Hon, 2008). Based on Hon (2008), frequency distribution analysis is a representation of graphical or tabular format such as pie charts based on the respondents’ demographic data. In a period, only one variable is considered for non parametric scale (ordinal, nominal) data and for example, the percentage of respondents’ age. From the frequency analysis, tables of frequency counts, percentages, and cumulative percentages for all the information regarding to demographic data will be generated by SPSS (Appendix 4.1).
3.6.2
Scale M easur ement
3.6.2.1 Reliability Test In order to avoid any bias and error, reliability test must be measured to get a consistent result. The reliability of a research can be obtained from Cronbach’s alpha. According to Cavana et al (2001), Cronbach’s alpha is useful for the multi-scaled items and able to determine how well the items in a set are positively correlated to one another. The coefficient alpha value can range from 0 to 1 and a value less than 0.6 shows unsatisfactory internal consistency reliability while when the value is closer to 1, the internal consistent reliability is high (Hair et al., 2006 & Malhotra, 2010).
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Table 3.3: The Rule of Thumb for Cronbach’s Alpha Coefficient Value Alpha Coefficient Range
Strength of Association
<0.60
Poor
0.60 to <0.70
Moderate
0.70 to <0.80
Good
0.80 to <0.90
Very Good
0.90
Excellent
Source: Hair, J. F., Babin, B. Jr., Money, A. H., & Samouel, P. (2003), Essential of business research methods, United Stated of America: John Wiley & Sons.
3.6.2.1 Exploratory Factor Analysis According to Hall (2013), factor analysis is a statistical data reduction and analysis technique that strives to explain the correlations among multiple variables and components as the result of one or more underlying explanations or factors. The technique involves data and variable reduction, as it attempts to represent a set of variables by a smaller number. Factor Analysis also removes redundancy or duplication from a set of correlated variables. In this analysis, the researcher will measure the Kaiser Meyer Olkin (KMO) & Bartlett’s test, the communalities; total variance explained that consists of Initial Eigenvalues, Component Matrix and Rotated Component Matrix.
3.6.3
Inferential Analyses
Normally, inferential analysis used to analyze the parametric scales (Interval, Ratio) and investigate the relationships between independent variables which are lighting, background music, color and visual merchandising, customer’s experience as a mediating and the dependent variable is customer behavioral intention. All hypotheses will be tested through inferential analyses is Pearson Correlation (Elst, 2013).
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3.6.3.1 Pearson Correlation Analysis Correlation is a statistical analysis to measure the association strength between v ariables that have been identified (Malhotra & Peterson, 2006). There must be two results from correlation coefficient (r) which is magnitude of the linear relationship (-1 to 1) and the direction of the relationship (- or +). The positive sign of r (+1), means there is positive correlation between X and Y. When r is negative (-1), it shows negative relationship between X and Y. While 0 result means there is no relationship between X and Y (Taylor, 1990). In Pearson Correlation test, the significance level is 0.05 means 95% of confidence level. When the significant p-value is less than 0.05, then the hypothesis are accepted (Malhorta, 2010).
3.6.4 Multiple Regression Analysis
According to Berger (2004), regression analysis is a statistical tool to examine the relationships between variable while multiple regression is a technique that allows additional factors to enter the analysis separately so that the effect of each variables can be estimated. In general, multiple regression is to identify the relationship between one variable on several other variables by analyzing coefficients for the equation in a straight line (Faraway, 2002). There are four questions can be develop in this part, whether the relationship between the variables are exits or not, and if yes, how strong the relationship; does the relationship is positively or negatively skewed and what is the proper method to describe the relationship through the multiple regression anal ysis (Hair et al., 2006). Coefficient of Determination (R 2) is a vital tool in identifying the degree of linear correlation of variables in regression analysis. The higher the value of R 2, the model becomes more useful and it has better variance which is the dependent variables is explained by the independent variables. Thus, it means that when R 2 is high, the impact
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of store atmospheric attributes on customer experience and purchase decision also high. The values take between 0-1 (Brown, 2003). Generally, ANOVA is one of the statistical analysis of the variation present in an experiment. According to Faraway (2002), ANOVA can be referred as a hypothesistesting technique to test if statically significant differences between means of two or more groups. For example, in this study, the researcher want to know whether there are significant between the identified variables which are the atmospheric attributes, customer experience and the purchase decision. ANOVA can be available at both parametric and non parametric data. If the significant value is less than or equal to 0.05, it means that there is a statistically significant difference between the two or more variables (Taylor, 2011). Through multiple regression analysis, there are equation can be used in this research to determine the statistical significance of each variable. Like the analysis, equation is used to find out the relationship exist between a set of variables. First Model Equation : Y1= a + bX1 + cX2 + dX3 + eX4 + h Second Model Equation : Y2 = a + fX5 + h
Based on the above linear equation, there are two model of equation based on variables selected. In the first model equation, Y1 is the value of customer experience which is the dependent variable, while a is fixed, constant and equals the value of Y when X1, X2, X3, X4= 0. X1 is the value for lighting, X2 is the value for background music, X3 is the value for color and the last one is X4 which is the value for visual merchandising. Then, b, c, d, and e are the slope of regression line. While h is a random term associated with each of the observation. On the other hand, for second model equation, it still has the same concept as the first model. Y2 is the value of customer behavioral intention which is the dependent variable for the second model. While a is fixed, constant and the value is equal to Y when X5 is equal to 0. X5 is the value for customer experience. Then f is the slope of regression line. While h is a random term associated with each of the observation. 44
CHAPTER 4: DATA ANALYSIS & FINDINGS 4.1 Preamble
In this chapter, after a complete 156 questionnaires have been collected, the researcher will do the data analysis; present the results and having further explanation of the feedback from the respondent. The researcher will analyze the entire element in the questionnaire such as demographic profile, the store atmospheric attributes, the customer experience and also the customer behavioral intention. Those responses will be organized and explained by using the SPSS 20.0 software. In SPSS, the data will go through several analyses such as the frequency distribution analysis, central tendencies measurement of construct which is the descriptive statistics, reliability test, exploratory factor analysis (EFA), inferential analyses which is Pearson Correlation Analysis, and also the multiple regression analysis. Then, from the result of doing the analysis, the researcher will know the hypothesis results.
4.2 Demographic Profile
Figure 4.1: The percentage of the respondent based on gender
Gender
36% Male Female 64%
Based on the figure above, majority of the survey’s respondent are male with 64% while the remaining with 36% is female. Since it is not about household product, majority of the decision 45
making are made by male. Besides that, compared to female, male are more interested with this technical product like automotive, gadget, electrical appliances and so on. Details of the result are shown in Appendix.
Figure 4.2: The information about the age of the respondent
50 45 40 35 30 25 20 Age
15 10 5 0 Less than 25
26-30
31-40
41-50
51-60
The respondent age
61-65
More than 66
Based on figure 4.2, majority of the respondents come from age 41 - 50 years old with 29.5%, the second highest is age 31 - 40 years old with 26.9%, while 15.4% come from respondent with the age range from 51 - 60 years old, then 26 - 30 years old with 14.1%, then 7.7% is the respondent age less than 25 years old, 3.8% of the respondent from at age 61 – 65 years old and the last one is 2.6% which is the respondent that age more than 66 years old. Majority of the respondents are age from 30 – 50 years old. It is because, at this age most of the respondent already have their own career and also have a stable financial planning rather than peoples with age less than 30 years old. For people’s age more than 66 years old, usually they already have the assets and did not want to burden with loan anymore. Moreover, they have children to take them anywhere they want to go. Details of the result are shown in Appendix.
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Figure 4.3: The percentage of the respondents’ nationality
The Respondent Nationality 4%
Malaysian Non Malaysian
96%
Figure 4.3 shows that majority with 96% of the respondents is Malaysian and only 4% are Non Malaysian respondents. The Non Malaysian respondents are Australian, Finnish, American, and Singaporean. It is not surprises since the surveys are conducted at Auto Bavaria, Malaysia and Glenmarie are not like Kuala Lumpur which is the place that foreigner prefer more to stayed and worked. If the survey is conducted at Auto Bavaria Kuala Lumpur, the potential to get more Non Malaysian respondent are high compared to Auto Bavaria Glenmarie. Figure 4.4: The percentage of the respondents’ race
The respondent race 5% 10% Malay Chinese 23%
Indian 62%
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Others
According to the above figure, it shows 61.5% as the majority and it goes to Malay. While 23.1% of the respondents are Chinese, 10.3% of the respondents are Indian while 5.1 % are others respondent that consists of different races like Sabahan, Sarawakian, Caucasian, Eurasian, Sikh, and Irish. Glenmarie is under Shah Alam district, most of the Shah Alam residents are Malay, followed by Chinese and Indian. Details of the result are shown in Appendix.
Figure 4.5: The percentage of the respondent highest academic qualification
The respondent highest academic qualification 3% 4% 15%
17%
PHD Master Bachelor Diploma
19%
SPM 42%
Others
Based on figure 4.5, as expected majority of the respondent hold a degree with 42.3%, followed by diploma holder with 18.6% of them, then 16.7% of the respondents hold for Masters, next is SPM holder with 15.4%, others with 4.5% and PHD holder only 2.6% among all the respondents. Others in the list consist of peoples that take professional certificate such as ACCA, IT, specific skills, management professional cert and so on. Majority of the Malaysian stop studying until they receive their first degree and after that they continue their life in working phase. Details of the result are shown in Appendix.
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Figure 4.6: The percentage of the respondents’ employment status
The respondent employment status The respondent employment status
48.1%
30.1%
5.1%
7.1%
7.70%
Pensioner
Others
1.9% Government
Semi Government/ Statutory Body
Self employed/ Businessman
Private Sector
According to figure 4.6, it can be concluded that majority of the respondents with 48.1% comes from the private sectors. Second highest is 30.1% goes to those who are self employed and also the businessman. Third fall to others with 7.7%, while 7.1% are pensioner and followed by semi government or statutory body respondent with 5.1% and the last rank are those from government with only 1.9%. Others category comes from various type of respondent such as housewives, students, unemployed, traveler, freelance, broker and so on. Many of the respondents are working at the private sector since it gives more rewards and incentives. Some of the private companies reward their employees based on their performance. For private sectors employees, usually their bonus and allowance are high compared to those who work at government sectors. Details of the result are shown in Appendix.
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Table 4.1 Summar y of Demographi c Profi le
Demographic Profile
Frequency
Percent
Gender
Male
100
64.1
Female
56
35.9
Less than 25 years old
12
7.7
26-30 years old
22
14.1
31-40 years old
42
26.9
41-50 years old
46
29.5
51-60 years old
24
15.4
61-65 years old
6
3.8
More than 66 years old
4
2.6
Malaysian
150
96.2
Non-Malaysian
6
3.8
Malay
96
61.5
Chinese
36
23.1
Indian
16
10.3
Others
8
5.1
PHD
4
2.6
Masters
26
16.7
Bachelor
66
42.3
Diploma
29
18.6
Age
Nationality
Race
Highest Academic Qualification
50
SPM
24
15.4
Others
7
4.5
Government
3
1.9
Semi Government/ Statutory Body
8
5.1
Self Employment/ Businessman
47
30.1
Private Sectors
75
48.1
Pensioner
11
7.1
Others
12
7.7
Employment Status
Based on the above summary of respondents’ demographic profile, majority of respondents are male with significant percentage of 64.1% compared to the male respondents which only consist of 35.9%. Then, many respondents fall into the age group between 41-50 years old with 29.5%. Small portion of respondents fall into the age group above 66 years old with only 2.6%. Besides that, 96.2% of the respondents are Malaysian and only 3.8% of them are Non Malaysian. By looking at their races, majority of the respondents are Malay which consists of 61.5% followed by Chinese respondents which are 23.1%, 10.3% of the respondents are Indian and the other races consist of 5.1% which is the lowest percentages of respondents based on race. Besides that, most of the respondents hold Bachelors (42.3%) for their highest academic qualification, second highest academic qualification fall to Diploma holder with 18.6% while PhD holder only 2.6% of them become the research respondent. Last but not least, for the status of employment, majority of the respondents come from various private sectors with 48.1% while the lowest percentages come from the gov ernment sectors which are only 1.9%.
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4.3 General I nf ormation
Figure 4.7: The percentage of the respondent s’ first product purchase
First product purchase First product purchase 63.5%
14.1%
11.5% 5.1%
4.5%
BMW Car
MINI Cooper
Motorrad
BPS
0.6%
0.6%
Parts & Accessories
Gifts & Souvenirs
Others
Based on the bar graph in figure 4.7 above, BMW Car achieved the highest product purchase with majority 63.5%. The second rank goes to MINI Cooper Car with 14.1%, followed by Motorrod (Motorcycles, Superbike, Scooter) with 11.5%, however 5.1% of the respondents are not done any purchase or intended to buy, 4.5% are from BPS products which is BMW and MINI Cooper used car. Last products are Parts & Accessories and Gifts & Souvenirs got the same result with 0.6% respectively. From the Auto Bavaria’s sales report, BMW cars are the main product that the customers always want to purchase. Usually a family will buy sedan cars which is more comfortable and can pack it with lot of things rather that small cars like MINI Cooper. For Motorrad, usually they have special buyer like those peoples that have deep interest and hobby to motorspot. Even the price are further low than new car, peoples usually want to buy new car rather than used car as offered by BPS (BMW Premium Selection). It is due to the safety and also the satisfaction. Details of the result are shown in Appendix.
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Figure 4.8: The percentage for the respondents second product purchase
Second Product Purchase Second Product Purchase 68.6%
11.5% 3.2% MINI Cooper
5.8%
Motorrad
3.2% BPS
Parts & Accessories
7.7%
Gifts & Souvenirs
None
For this survey, BMW car are excluded since it was the main product at Auto Bavaria and the researcher already calculate for it at the firstplace. Based on the figure 4.8, majority of the respondent do not have any second product purchase and achieve 68.6%. For example, after the respondents buy the BMW car, since then they did not buy any other products beside BMW car at Auto Bavaria. 11.5% of the respondents bought parts and accessories as their second purchase after they buy the car, while 7.7% of the respondents bought the gifts and souvenirs. After that, the rank followed by Motorrad with 5.8% among 156 respondents. It means that, the respondents perhaps have bought two types of product at Auto Bavaria which is the car and motorcycle. MINI Cooper and BPS shows the same rate which are 3.2% respectively and also the lowest percentage among the other products. Details of the result are shown in Appendix.
53
Figure 4.9: The percentage of the customer s’ rating whether Auto Bavaria needs atmosphere changes or not?
Auto Bavaria Changes
Yes
49% 51%
No
Based on the above pie chart, 51% of the respondents said that Auto Bavaria really needs changes in order to create an appeal store atmosphere, attract the customer’s attention, being different and unique and so on. While 49% of the respondents said that there is no need to do any changes at Auto Bavaria since they are already satisfied and comfortable with store atmosphere. Details of the result are shown in Appendix. Figure 4.10: The percentages of the medium that customer knows about Auto Bavaria
How the respondent know about Auto Bavaria (1) 4% 4% 34% 31%
Advertising Peoples Internet Self Awareness
7%
20%
Events Others
54
Based on the figure 4.10, 34% of the respondents which is the majority know Auto Bavaria from the advertising like newspaper, magazines and billboard. While 30.8% of the respondents know Auto Bavaria by themselves since Auto Bavaria already be in the market for more than 20 years old. Moreover, most all of the Auto Bavaria branches are located at strategic locations and it includes with the Auto Bavaria Glenmarie. 19.9% of the respondents know Auto Bavaria from other peoples such as their own families and also friends. It is proved that the effectiveness of word of mouth influences are never fails. Next, internet likes the Auto Bavaria owns websites and BMW (Malaysia) websites are the next medium that respondents know about Auto Bavaria with 7.7%. Besides that, events and others medium have the same rate by the respondents which is 3.8% respectively. Details of the result are shown in Appendix.
Figure 4.11: The percentage of the medium that respondent knows about Auto Bavaria
How the respondent know about Auto Bavaria (2) 37%
19% Peoples 10% 9%
10%
Internet Self Awareness Events
15%
Others None
Based on the above pie chart, it shows the second analysis that how the respondents know Auto Bavaria. 36.5% of the respondents do not have their second medium how they know Auto Bavaria. Most of the respondent that rates this is the customer that self awareness knows about Auto Bavaria. Second ranks falls to respondent that know Auto Bavaria from the other peoples such as family and friends with 19.2%. Then, the rank followed by events with 15.4%. Auto 55
Bavaria often involve in exclusive events like LPGA, Monsoon Cup, Sultan Cup and others. 10.3% respondents know Auto Bavaria from Internet, 9.6% of the respondents know Auto Bavaria from others medium like catalogs, articles, television news and so on. While 9% of the respondents self awareness know about Auto Bavaria. Since there are two analyses regarding to the medium of knowing Auto Bavaria, so self awareness become the lowest percentage among others because it already pick as first medium b y the respondents.
4.4 Exploratory Factor Analysis
Table 4.2 KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy.
.887
Approx. Chi-Square Bartlett's Test of Sphericity
3492.195
df
435
Sig.
.000
Based on the table 4.2 above, it is Kaiser- Meyer- Olkin measure of sampling adequacy and Bartlett’s test of sphericity. The KMO statistic measurement is between 0 and 1. Any values that closed to 0 means that the sum of partial correlations is large relative to the sum of correlations, indicating diffusion in the pattern of correlations, thus, the value of factor analysis that closed to 0 is inappropriate. On the other hand, values that near to 1 means that patterns of correlations are relatively compact and so factor analysis should yield distinct and reliable factors (Field, 2005) Since the KMO value in this study is 0.887, it shows a good value, acceptable and also the researcher should be confident that factor analysis is appropriate for these data. However, for factor analysis to work the researcher need some relationships between variables and a significant test tells that the R matrix is not an identity matrix. Then, the researcher must have a significant value for this study. Bartlett’s measure tests are highly significant since p is 0.000 and it means that the factor analysis is appropriate. 56
Total Variance Explained
Component
Initial Eigenvalues
Total
% of
Cumulative
Variance
(%)
1
11.785
39.282
2
2.696
8.987
48.268
3
2.176
7.254
4
1.899
5
Extraction Sums of Squared
Rotation Sums of Squared
Loadings
Loadings
Total
% of
Cumulative
Variance
(%)
39.282 11.785
Total
% of
Cumulative
Variance
(%)
39.282
39.282
3.896
12.985
12.985
2.696
8.987
48.268
3.873
12.909
25.895
55.523
2.176
7.254
55.523
3.628
12.092
37.987
6.330
61.853
1.899
6.330
61.853
3.426
11.418
49.406
1.820
6.067
67.921
1.820
6.067
67.921
3.410
11.367
60.773
6
1.208
4.027
71.947
1.208
4.027
71.947
3.352
11.174
71.947
7
.918
3.061
75.008
8
.782
2.607
77.615
9
.654
2.180
79.795
10
.598
1.993
81.789
11
.553
1.842
83.631
12
.514
1.712
85.343
13
.475
1.585
86.927
14
.409
1.363
88.291
15
.383
1.278
89.568
16
.355
1.184
90.753
17
.343
1.143
91.896
18
.297
.990
92.886
19
.287
.958
93.844
20
.246
.821
94.665
21
.226
.755
95.420
22
.215
.716
96.136
23
.203
.676
96.812
24
.189
.630
97.442
25
.182
.607
98.048
26
.152
.507
98.555
27
.131
.435
98.990
28
.109
.363
99.353
29
.103
.345
99.698
30
.091
.302
100.000
Extraction Method: Principal Component Analysis.
Table 4.3
57
In table 4.3 shows all the factors extractable from the analysis along with their eigenvalues, the % of variance attributable to each factor, and the cumulative variance of the factor and the previous factors. Before extraction, SPSS has identified 30 linear components within the data set. In the initial Eigenvalues there are first six components are meaningful as they have Eigenvalues > 1. Components 1, 2, 3, 4, 5 and 6 explain 39.282%, 8.987%, 7.254%, 6.330%, 6.067% and 4.027% of the variance respectively with a cumulative total of 71.947% which is acceptable. All the remaining components are not significant since less than 1.
Table 4.4: Rotated Component Matrix Items
1
VM3
0.800
VM1
0.791
VM2
0.780
VM4
0.742
VM5
0.714
2
M4
0.832
M3
0.794
M5
0.777
M2
0.736
M1
0.692
3
4
C3
0.801
C2
0.754
C1
0.736
C4
0.699
C5
0.589
L2
0.852
L1
0.49
L3
0.827
L5
0.707
L4
0.578 58
5
6
CBI5
0.836
CBI4
0.820
CBI3
0.701
CBI1
0.644
CBI2
0.622
CE3
0.781
CE4
0.745
CE5
0.716
CE1
0.677
CE2
0.670
Eigenvalue
11.785
2.696
2.176
1.899
1.820
1.208
Cumulative
39.282
8.987
7.254
6.330
6.067
4.027
% of explained variance
Based on table 4.4 above, it is a table of rotated component (factor) matrix which is a matrix of the factor loadings for each variable onto each factor. This rotation is to reduce the number factors on which variables under investigation have high loadings. Rotation does not actually change anything but makes the interpretation of the analysis become easier by clicking suppression of loading less than 0.5 and sorted the variable by size at SPSS (Zikmund, 2003). According to Hair et al (2006), factor loading that has value more than 0.5 were considered as acceptable and as we can see at the table above, all components have higher factor loading and (>0.5). Therefore, these factors can be used as variables and test the hypotheses for further analysis. According to the analysis, visual merchandising loaded on component 1, background music in the component 2, color in the component 3, lighting in the fourth component, customer behavioral intention in component 5 and the last one is customer experience which is in component 6.
59
4.5 Reliability Test
The following table shows the summary of reliability statistics for the first model includes four independent variables which are lighting, background music, color and the visual merchandising and one dependent variable which is customer experience. While in the second model, customer ’s experience becomes the independent variable while the customer behavioral intention as the dependent variable. This reliability test will includes all items in each variable. Table 4.5: Summary of Reliability Analysis Construct
Number of Items
Cronbach’s Alpha
1. Lighting
5
0.868
2. Background Music
5
0.897
3. Color
5
0.864
4. Visual Merchandising
5
0.917
Customer Experience
5
0.878
Customer Behavioral Intention
5
0.887
Store Atmospheric Attributes
Based on Table 4.5, the Cronbach’s alpha value for lighting with five items is 0.868, while background music also with five items is 0.897, color with five items is 0.864, visual merchandising also have five items have 0.917 for the Cronbach’s Alpha value, then customer experience shows 0.878 and at last for the customer behavioral intention also have five items got 0.887 for Cronbach’s Alpha value. By refer ring to Table 4.2, all Cronbach’s alpha values for each constructs are more than 0.600. Thus, it can be concluded that all items for each construct in this research are in the range of ‘good’ and ‘very good’ which shows high stability, consistent results and also in the satisfactory level. Details of the result are shown in Appendix.
60
4.6 The Central Tendencies Measurement of Construct 4.6.1 L ighti ng
Table 4.6: Summary of Central Tendency for Lighting No.
Descri ption
M ean
Standard Deviation
Skewness
Kurtosis
1.
The type of lighting used is compatible with environment of the store. The lighting used in the store allows me to examine the products clearly. The lighting level of brightness makes me comfortable being in the store. The lighting used in the store looks exclusive. The combination of natural lighting in the store is convenient.
3.87
0.737
-0.370
0.070
3.91
0.694
-0.230
-0.055
3.94
0.793
-0.751
1.376
3.56
0.952
-0.326
0.140
3.87
0.809
-0.576
0.856
2. 3.
4. 5.
Table 4.6 demonstrates five statements for lighting. “The lighting level of brightness makes me comfortable being in the store” scores the highest mean which is 3.94; while “The lighting used in the store looks exclusive” scores the lowest mean which is 3.56. For the standard deviation, “The lighting used in the store looks exclusive” scores the highest standard deviation with 0.952; a higher standard deviation means that the data will be spread much more and not too accurate. While “The lighting used in the store allows me to examine the products clearly” scores the lowest standard deviation with 0.782. A low standard deviation means the data is packed closer together which is more clustered, accurate and useful. All of the lighting statements are negative skewness which is less than 0. It means for left skewed distribution. When the skewness is equal to zero means the distribution is symmetrical around the mean. For the kurtosis, all of the statements are positive except for the second statement which is “The lighting used in the store allows me to examine the products clearly”. Positive kurtosis means the distributions for the statements is more peaked than a normal distribution. Details of the result are shown in Appendix. 61
4.6.2 Backgr ound M usic
Table 4.7: Summary of Central Tendency for Background Music No.
Descri ptions
M ean
Standard Deviation
Skewness
Kurtosis
1.
The background music genres are pleasant to hear. For me, the volume of the background music is appropriate. I really enjoy the rhythm of the background music in the store. The tempo of the background music makes me want to stay longer in the store. The background music played in the store can enhance my interest.
3.66
0.987
-0.741
0.575
3.66
1.013
-0.936
0.654
3.53
0.947
-0.583
-0.028
3.33
0.986
-0.385
-0.015
3.23
1.065
-0.312
-0.425
2. 3. 4.
5.
Table 4.7 demonstrates five statements for music background. “The background music genre are pleasant to hear ” and “For me, the volume of the background music is appropriate” both have the same mean value and also scores the highest mean 3.66 respectively; while “The background music played in the store can enhance my interest” scores the lowest mean 3.23. For the standard deviation, “The background music played in the store can enhance my interest” scores the highest standard deviation which is 1.065; a higher standard deviation means that the data will be spread much more and not too accurate. While “I really enjoy the rhythm of the background music in the store” scores the lowest standard deviation with 0.947. A low standard deviation means the data is packed closer together which is more clustered, accurate and useful. All of the background music statements are negative skewness which is less than 0. It means for left skewed distribution. For the kurtosis, there are three statements are positive while for the first and second statement which is “The background music genres are pleasant to hear ” and “For me, the volume of the background music is appropriate” is negative. Negative kurtosis indicates a flat distribution. Positive kurtosis means the distributions for the statements is more peaked than a normal distribution. Details of the result are shown in Appendix. 62
4.6.3 Color
Table 4.8: Summary of Central Tendency for Color No.
I tems
M ean
Standard Deviation
Skewness
Kurtosis
1.
Choices of the theme colors at the store successfully to create attention. The colors apply in the store shows a trendy coordination. The color of the furniture and its fabric looks elegance. For me, the choices of the color combination create a good emotion. The color used in the store able to create desires to purchase.
3.62
0.911
-0.523
0.149
3.59
0.950
-0.422
0.025
3.58
0.930
-0.393
0.142
3.70
0.815
-0.554
0.666
3.31
0.976
-0.246
-0.57
2. 3. 4. 5.
Table 4.8 demonstrates five statements for store’s color. “For me, the choices of the color combination create a good emotion” scores the highest mean which is 3.70; while “The color used in the store able to create desires to purchase” scores the lowest mean 3.31. For the standard deviation, “The color used in the store able to create desires to purchase” scores the highest standard deviation which is 0.976; a higher standard deviation means that the data will be spread much more and not too accurate. While “For me, the choices of the color combination create a good emotion” scores the lowest standard deviation with 0.815. A low standard deviation means the data is packed closer together which is more clustered, accurate and useful. All of the color statements are negative skewness which is less than 0. It means for left skewed distribution. For the kurtosis, there are four of the statements are shows positive values while the last statement which is “The color used in the store able to create desires to purchase” is in negative value. Negative kurtosis indicates a flat distribution. Positive kurtosis means the distributions for the statements is more peaked than a normal distribution. Details of the result are shown in Appendix.
63
4.6.4 Visual M erchandising
Table 4.9: Summary of Central Tendency for Visual Merchandising No.
Descri ptions
M ean
Standard Deviation
Skewness
Kurtosis
1.
I am satisfied with the merchandise presentation in the store. The creative props used in the store give an inspiring idea to me. For me, the displays used in the store are very convincing. The store decorations also create an evocative presentation. The store visual merchandising success to create confidence in me.
3.46
1.031
-0.557
-0.086
3.33
0.939
-0.288
0.060
3.53
0.987
-0.440
-0.117
3.57
0.984
-0.240
-0.609
3.63
0.917
-0.512
-0.112
2. 3. 4. 5.
Table 4.9 demonstrates five statements for store’s visual merchandising. “The store visual merchandising success to create confidence in me” scores the highest mean which is 3.63; while “The creative props used in the store give an inspiring idea to me” scores the lowest mean 3.33. For the standard deviation, “I am satisfied with the merchandise presentation in the store” scores the highest standard deviation which is 1.031; a higher standard deviation means that the data will be spread much more and not too accurate. While “The store visual merchandising success to create confidence in me” scores the lowest standard deviation with 0.917. A low standard deviation means the data is packed closer together which is more clustered, accurate and useful. All of the visual merchandising statements are negative skewness which is less than 0. It means for left skewed distribution. For the kurtosis, there are four of the statements are shows positive values while the second statement which is “The creative props used in the store give an inspiring idea to me” is in negative value. Negative kurtosis indicates a flat distribution. Positive kurtosis means the distributions for the statements is more peaked than a normal distribution. Details of the result are shown in Appendix.
64
4.6.5 Customer E xperi ence
Table 4.10: Summary of Central Tendency for Customer Experience No.
I tems
M ean
Standard Deviation
Skewness
Kurtosis
1.
The lighting in the store gives an impact to me. The background music creates an enormous experience to me. The colors in the store also bring a fascinating experience to me. The presentation of the visual merchandising successful in creating an impressive experience. The atmospheric attributes success to create a positive image in this store.
3.36
0.795
0.044
0.352
3.37
0.888
-0.397
0.271
3.47
0.876
-0.485
0.622
3.52
0.905
-0.428
0.233
3.71
0.865
-0.372
0.143
2. 3. 4.
5.
Table 4.10 demonstrates five statements of customer experience. “The atmospheric attributes success to create a positive image in this store” scores the highest mean which is 3.71; while “The lighting in the store gives an impact to me” scores the lowest mean 3.36. For the standard deviation, “The presentation of the visual merchandising successful in creating an impressive experience” scores the highest standard deviation which is 0.905; a higher standard deviation means that the data will be spread much more and not too accurate. While “The lighting in the store gives an impact to me” scores the lowest standard deviation with 0.795. A low standard deviation means the data is packed closer together which is more clustered, accurate and useful. All of the customer experience statements are negative skewness which is less than 0 except for the first statement which is “The lighting in the store gives an impact to me” is show positive value. Positive skewness means it has right skewed d istribution while for the negative skewness it means for left skewed distribution. For the kurtosis, all of the statements are shows positive values. Positive kurtosis means the distributions for the statements is more peaked than a normal distribution. Details of the result are shown in Appendix.
65
4.6.6 Customer Behavior al I ntenti on
Table 4.11: Summary of Central Tendency for Customer Behavioral Intention No.
I tems
M ean
Standard Deviation
Skewness
Kurtosis
1.
The atmospheric attributes in the store help me to make a decision. The store atmosphere makes me comfort to stay longer in the store. The atmospheric factors in this store are successful in putting trust in me. I would like to recommend other peoples to come and buy product or service from this store. I would like to purchase again in the future.
3.32
0.858
-0.298
0.202
3.47
0.876
-0.388
0.100
3.51
0.891
-0.649
0.598
3.75
0.808
-0.255
-0.359
3.72
0.891
-0.424
-0.219
2. 3.
4.
5.
Table 4.11 demonstrates five statements for the customer behavioral intention. “I would like to recommend other peoples to come and buy product or service from this store” scores the highest mean which is 3.75; while “The atmospheric attributes in the store help me to make a decision” scores the lowest mean 3.32. For the standard deviation, there are two statements which are “The atmospheric factors in this store are successful in putting trust in me” and “I would like to purchase again in the future” scores the highest standard deviation which both of the statements got 0.891; a higher standard deviation means that the data will be spread much more and not too accurate. While “I would like to recommend other peoples to come and buy product or service from this store” scores the lowest standard deviation with 0.808. A low standard deviation means the data is packed closer together which is more clustered, accurate and use ful. All of the customer behavioral intention statements are negative skewness which is less than 0. It means for left skewed distribution. For the kurtosis, only two of the statements are shows negative values which are “I would like to recommend other peoples to come and buy product or service from this store” and “I would like to purchase again in the future” while the others statements is in positive value. Negative kurtosis indicates a flat distribution. Positive kurtosis 66
means the distributions for the statements is more peaked than a normal distribution. Details of the result are shown in Appendix.
4.7 Correlation Matrix F ir st Model
Table 4.12: The Correlations between the Store Atmospheric Attributes and the Cust omers’ Experiences Correlations
Lighting
.391**
.000
.000
.000
.000
156
156
156
156
156
.464**
1
.510**
.377**
.505**
.000
.000
.000
Sig. (2-tailed)
.000
N
156
156
156
156
156
.398**
.510**
1
.557**
.440**
Sig. (2-tailed)
.000
.000
.000
.000
N
156
156
156
156
156
.372**
.377**
.557**
1
.596**
Sig. (2-tailed)
.000
.000
.000
N
156
156
156
156
156
.391**
.505**
.440**
.596**
1
Sig. (2-tailed)
.000
.000
.000
.000
N
156
156
156
156
Pearson Correlation Colour
Pearson Correlation Merchandising
Pearson Correlation Experience
Experience
.372**
N
Music
Merchandising
.398**
1
Sig. (2-tailed)
Pearson Correlation
Colour
.464**
Pearson Correlation Lighting
Music
.000
156
**. Correlation is significant at the 0.01 level (2-tailed).
The researcher used the Pearson Correlation Matrix to indicate whether there are positive or negative relationships between those variables. Positive value indicates positive relationship while negative value indicates negative relationship. When the correlation values are close to -1 or +1, then the variables will more near to the perfect linear relationship. 0.7 – 1.0 shows a strong relationship, 0.5 – 0.7 shows a moderate relationship, 0.3 – 0.5 shows weak relationship and below 0.3 means there is little or no relationship between the variables. 67
According to Table 4.12, visual merchandising has the strongest positive association with the dependent variable, customer experience which is r = 0.596. Then, it is followed by the positive correlation between background music and customer purchase decision with r = 0.505. The weakest level of positive association is between store lighting and customer experience with r = 0.391.
Second M odel
Table 4.13: Correlation between Customers’ Experiences and their Behavioral Intention
Correlations
Experience Pearson Correlation Experience
1
Sig. (2-tailed)
.506** .000
N Pearson Correlation Behavioral
Behavioral
156
156
.506**
1
Sig. (2-tailed)
.000
N
156
156
**. Correlation is significant at the 0.01 level (2-tailed).
From the result in table 4.13, for the second model, it shows that there is a moderate positive association between the customer experience and customer behavioral intention. The significant value is r = 0.506. So, it can be said that if the customer experience level increase, then the customer behavioral intention also will increase with 50.6%.
68
Table 4.14: The Correlation between the Customers’ Experiences and the Behavioral Intention (The store atmosphere helps me to make a decision) Correlations
Experience
The atmosphere help in make decision
Pearson Correlation Experience
.425**
1
Sig. (2-tailed)
.000
N Pearson Correlation The atmosphere help in make decision
156
156
.425**
1
Sig. (2-tailed)
.000
N
156
156
**. Correlation is significant at the 0.01 level (2-tailed).
From the result in table 4.14, the researcher do a further description and analysis for second model at each of the element been test, it shows that there is a moderate positive association between the customer experience and customer behavioral intention (The store atmosphere help the customer in make decision). The significant value is r = 0.425. So, it can be said that if the customer experience level increase, then the customer can make decision with the help of store atmosphere also will increase with 42.5%.
Table 4.15: The Correlation between the Customers’ Experiences and the behavioral intention (The store atmosphere makes me comfort to stay longer in the store) Correlations
Experience
The atmosphere comfort to stay long
Pearson Correlation Experience
Sig. (2-tailed) N Pearson Correlation
The atmosphere comfort to stay long
1
.000 156
156
.538**
1
Sig. (2-tailed)
.000
N
156
**. Correlation is significant at the 0.01 level (2-tailed).
69
.538**
156
From the result in table 4.15, it shows that there is a moderate positive association between the customer experience and customer behavioral intention (The store atmosphere makes customer comfort to stay longer in the store). The significant value is r = 0.538. So, it can be said that if the customer experience level increase, then the customer behavioral intention (The store atmosphere makes customer comfort to stay longer in the store) also will increase with 53.8%.
Table 4.16: The Correlation between the Customers’ Exper iences iences and the Behavioral Intention (The atmospheric factors in this store are successful successful in putting trust in me) Correlations
Experience
The atmosphere success put trust
Pearson Correlation Experience
Sig. (2-tailed) N Pearson Correlation
The atmosphere success put trust
1
.504** .000
156
156
.504**
1
Sig. (2-tailed)
.000
N
156
156
**. Correlation is significant at the 0.01 level (2-tailed).
From the result in table 4.16, it shows that there is a moderate positive association between the customer experience and customer behavioral intention (The store atmosphere successful in putting trust to the customers). The significant value is r = 0.504. So, it can be said that if the customer experience level increase, then the customer behavioral intention (The store atmosphere successful in putting trust to the customers) also will increase with 50.4%.
70
Table 4.17: The Correlation between the Customers’ Experience s and the Behavioral Intention (I would like to recommend other peoples to come and buy product/services from this store)
Correlations
Experience
Recommend to other peoples to come and buy
Pearson Correlation Experience
Sig. (2-tailed) N Pearson Correlation
Recommend to other peoples to come and buy
.376**
1
.000 156
156
.376**
1
Sig. (2-tailed)
.000
N
156
156
**. Correlation is significant at the 0.01 level (2-tailed).
From the result in table 4.17, it shows that there is a weak positive association between the customer experience and customer behavioral intention (The customers will recommend other peoples to come and buy products at auto Bavaria). The significant value is r = 0.376. So , it can be said that if the customer experience level increase, then the customer behavioral intention (The customers will recommend other peoples to come and buy products at auto Bavaria) also will increase with 37.6%.
Table 4.18: The Correlation between the Customers’ Exper iences iences and the Behavioral Intention (I would like to purchase again in the future) Correlations
Experience
Purchase again in the future
Pearson Correlation Experience
Sig. (2-tailed) N Pearson Correlation
Purchase again in the future
1
.001 156
156
.253**
1
Sig. (2-tailed)
.001
N
156
**. Correlation is significant at the 0.01 level (2- tailed).
71
.253**
156
From the result in table 4.18, it shows that there is only small value of positive association between the customer experience and customer behavioral intention (The customers will purchase again a gain at Auto Bavaria in the future). The significant value is r = 0.253. 0.2 53. So, S o, it can be said that if the customer experience level increase, then the customer behavioral intention (The customers will purchase again at Auto Bavaria in the future) also will increase only with 25.3%.
4.8 Multiple Regression Analysis F ir st M odel: odel: Th e relati relati onshi onshi p betwe betwee en t he four factors of store atmos atmosphe phere re and th e exper exper i ence perceived by the customers customer s
Table 4.19: Multiple Regression Analysis; Model Summary (First Model)
Model
1
R
R Square
.673a
Adjusted R
Std. Error of the
Square
Estimate
.452
.438
2.66350
a. Predictors: (Constant), Merchandising, Lighting, Music, Colour
In the model summary above, it shows the list of the predictors which all are independent variables for store atmospheric attributes. The R square shows 0.452 in value and it means that 45.2% of the variance in the customer experience was been significantly explained by the four independent variables (lighting, music background, color and visual merchandising). The remaining percent were explained by other factors.
Table 4.20: ANOVA (First Model) Model
Sum of Squares Regression
1
df
Mean Square
884.850
4
221.212
Residual
1071.227
151
7.094
Total
1956.077
155
a. Dependent Variable: Experience b. Predictors: (Constant), (Constant), Merchandising, Lighting, Lighting, Music, Colour Colour
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F 31.182
Sig. .000 b
Based on table 4.20, the researcher find that the p value is 0.000 < 0.05, therefore it proved that there is significant relationship between the selected store atmosphere attributes which is the independent variables and also with the customer experience which is the dependent variable.
Table 4.21: Coefficients (First Model) Model
Unstandardized Coefficients
Standardized
t
Sig.
Coefficients B (Constant)
1
Std. Error 4.583
1.422
Lighting
.093
.077
Music
.247
Colour Merchandising
Beta 3.223
.002
.085
1.203
.231
.063
.292
3.929
.000
.006
.076
.006
.079
.937
.380
.062
.451
6.084
.000
a. Dependent Variable: Experience
Table 4.21 shows the findings of which among the four independent variables most influenced to the customer experience. It shows that there we re two independent variables that have below 0.05 significant levels, (95% confidence level). The relationship between lighting and customer ex perience was not significant since the p value is 0.231 and it is more than alpha value, 0.05. It shows that lighting is not significant relationship with customer experience. Standardized coefficient beta for lighting was 0.085. Therefore, the H 2: Th ere is sign if icant relati onshi p between li ghti ng and customer exper iences in Au to B avari a, Glenmari e is rejected
The relationship between background music and customer experience was significant at 0.000. It shows that background music have significant relationship with customer experience. Standardized coefficient beta for background music was 0.292. Therefore, the H 2: There is a significant relationship between background music and customer experiences in Auto Bavar ia, Glenmar ie is accepted 73
The relationship between color and customer ex perience was not significant since the p value, 0.937 which is more than alpha value 0.05. It shows that color is not significant relationship with customer experience. Standardized coefficient beta for lighting was 0.006. Therefore, the H 2: Th ere is sign if icant r elati onshi p between color an d customer exper iences in Au to Bavari a, Glenmari e is rejected
The relationship between visual merchandising and customer experience was significant at 0.000. It shows that visual merchandising have significant relationship with customer experience. Standardized coefficient beta for music background was 0.451. Therefore, the H4: There is a significant relationship between store visual merchandising and customer experi ences in A uto Bavari a, Glenmar ie is accepted
Second M odel : Th e relati onshi p between th e customers’ experiences and th eir behavioral in tenti on
Table 4.22: Model Summary (Second Model) Model
1
R
R Square
.506a
.256
Adjusted R
Std. Error of the
Square
Estimate .251
3.10633
a. Predictors: (Constant), Experience
The regression analysis also conducted to test the second model which is the relationship between the customer experience and customer behavioral intention. In the model summary above, it shows the predictor, Customer experience as the independent variable. The R square shows 0.256 in value and it means that 25.6% of the variance in the customer behavioral intention was been significantly explained by customer experience. Thus, the remaining percent which is 74.4% were explained by other factors.
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Table 4.23 ANOVAa
Model
Sum of Squares Regression
1
df
Mean Square
510.598
1
510.598
Residual
1485.991
154
9.649
Total
1996.590
155
F
Sig.
52.916
.000 b
a. Dependent Variable: Intention b. Predictors: (Constant), Experience
Based on table 4.23, the researcher has find that the p value is 0.000 < 0.05, therefore it proved that there is significant relationship between the customer experience which is the independent variables and also with the customer behavioral intention which is the dependent variable.
Table 4.24 Coefficientsa
Model
Unstandardized Coefficients
Standardized
t
Sig.
Coefficients B (Constant)
Std. Error 8.880
1.249
.511
.070
Beta 7.112
.000
7.274
.000
1 Experience
.506
a. Dependent Variable: Intention
The relationship between customer experience and customer behavioral intention was significant at 0.000. It shows that customer experience have significant relationship with customer behavioral intention. Standardized coefficient beta for music background was 0.506. re is a significant relationship between the customers’ experi ence and Therefore, the H5: The behavior al i ntenti on at A uto B avari a, Glenmarie is accepted.
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Table 4.25: Summary of hypotheses result for store atmospheric attributes and customer experience (First Model) No of hypothesis 1.
Hypotheses
Result
There is a significant relationship between store lighting, and customer experience in Auto Bavaria, Glenmarie
Rejected
2.
There is a significant relationship between background music and customer experiences in Auto Bavaria, Glenmarie.
Accepted
3.
There is a significant relationship between colors and customer experiences in Auto Bavaria, Glenmarie
Rejected
4.
There is a significant relationship between store visual merchandising and customer experiences in Auto Bavaria, Glenmarie
Accepted
Table 4.26: Summary of hypothesis result for customer experience and the customer behavioral intention (Second Model) No of hypothesis 5.
Hypothesis
Result
There is a significant relationship between the customers’ experience and behavioral intention at Auto Bavaria, Glenmarie.
Accepted
4.9 Multiple Regression Equation
F ir st Model
R 2 for the first model is 0.452 which means that 45.2% of the variation in the dependent variable customer experience can be explained by four independent variables (lighting, 76
background music, color and visual merchandising). F value for this model is 31.182 together with 0.000 of significance level. According to the linear equation of this study, lighting, background music, color and visual merchandising have significant positive relationship with customer experience.
An equation is formed for this study:
CE = 4.583 + 0.093L + 0.247BM + 0.006C + 0.380M
Second M odel
R 2 for the first model is 0.256 which means that 25.6% of the variation in the dependent variable which is the customer behavioral intention can be explained by an independent variable which is the customer experience. F value in this second model is 52.916 and 0.000 significance level as stated at the table 4.20. According to the linear equation of this study, customer experiences have significant positive relationship with customer purchase decision.
An equation is formed for this study: CBI = 8.880 + 0.511CE
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CHAPTER 5: RECOMMENDATIONS AND CONCLUSIONS
5.0 Preamble
In this chapter the researcher will discuss the summary of the identified issues and major findings based on the hypotheses, and from the discussion, researcher will clarify on the implication of the study regarding to the all (4) four atmosphere attributes and draw conclusion. Besides that, the researcher also provides several recommendations for Auto Bavaria’s perusal and also the direction of the future research.
5.1 Discussion
This chapter highlights discussion of research findings based on the identified research questions, hypotheses, and also the research object ives.
5.1.1 L ighti ng
First objective that will be discussed is “to determine the relationship between the lighting used in Auto Bavaria and the customer experiences throughout their visit in this store”. Based on the reliability test, with five numbers of items, lighting achieves 0.868 for the Cronbach’s Alpha value. It was above the satisfactory level. While based on the multiple regression models, lighting significant value is 0.231 that is above p > 0.05 and the researcher need to accept the null hypothesis which is the lighting as independent variables is not a significant predictor of the dependent variable, the customer experience. For Pearson Correlation analysis, the correlation is 0.391 which is positive and it means that it has weak level of association between lighting and the customer experience. While positive value means that when the lighting at Auto Bavaria give more satisfaction to the customers which is the value of the variable increase, it also will increase 39.1% the perceived experience from the customers.
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5.1.2
Backgr ound M usic
Second objectives need to be discuss is “to highlight the significant impact of background music choice towards the customer experiences in Auto Bavaria” Based on the reliability test, same with the lighting, background music also have five numbers of items, the reliability test achieves for the background music is 0.897. It was above the satisfactory level. While based on the multiple regression analysis, the significant value for background music is 0.00 that was below p < 0.05 and the researcher can reject the null hypothesis because the background music as independent variables is a significant predictor for the dependent variable, which is the customer experience. For Pearson Correlation analysis, the correlation is 0.505 which is in moderate strong association with the dependent variables, customer experience. It is also having positive value and it means that when the background music at Auto Bavaria gives more satisfaction to the customer which is the value of the variables increase, it also will increase 50.5% the perceived experience to the customers.
5.1.3 Colour
While the third objective that need to be explained is “to prove the significant relationship of colour adaptation used in Auto Bavaria and the experiences perceived by the customer ”. Based on the reliability test, colours also have five numbers of items and the value of Cronbach’s Alpha for this attributes is 0.864. It also was above the satisfactory level. While based on the multiple regression analysis, the significant value for colour is 0.937 that which is above p > 0.05 and the researcher need to accept the null hypothesis which is the colour as independent variables is not a significant predictor for the dependent variable, which is the customer experience. On the other hand, based on Pearson Correlation analysis, the reading shows 0.440 which is positive in value and it means that when the store’s colour at Auto Bavaria give satisfaction to the customers which is the value of the variable increase, it also will increase 44% the perceived experience to the customers. Besides that it is also has moderate strong association between colour and the customer experience.
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5.1.4 Visual M erchandising
Fourth, the objective of the study is to explore the relationship between the store visual merchandising and the experience acquired by the customer in Auto Bavaria. Based on the reliability test, visual merchandising also has five numbers of items to be tested. Visual merchandising becomes the most stable and consistent item among the other item since the Cronbach’s Alpha value is 0.917. It is also at the above satisf actory level. While based on the multiple regression analysis, the significant value for visual merchandising is 0.00 same as the music background significant value. That was below p < 0.05 and the researcher can reject the null hypothesis since the visual merchandising which is the independent variables is a significant predictor for the dependent variable, the customer experience. For Pearson Correlation analysis, the correlation is 0.596 which is in positive value and it means that when visual merchandising at Auto Bavaria success in giving satisfaction to the customers, it also will increase 59.6% the perceived experience to the customers. Besides that, visual merchandising also has the strongest association among the other attributes to the customer experience.
5.1.5 Customer s Ex peri ence & Behavioral I ntention & Th e Best Atmospheri c F actors
For the fifth objective need to be analysed is to know the relationship between customers’ experience and their behavioral intention at Auto Bavaria. Based on the reliability test, same with the other store atmospheric attributes, customer experience and behavioral intention also have five numbers of items, the reliability test achieves for the customer experience is 0.878 while the value of Cronbach’s Alpha for customer behavioral intention is 0.887. Both were above the satisfactory level. While based on the multiple regression analysis, the significant value for customer experience is 0.00 that was below p < 0.05 and the researcher can reject the null hypothesis because the customer experience as the independent variables is a significant predictor for the dependent variable, which is the customer behavioral intention. For Pearson Correlation analysis, the correlation is 0.506 which is in positive value and it means that when the customer perceived more positive experience at Auto Bavaria which is the value of the variables increase, it also will increase 50.6% the value of the customer behavioral intention.
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Besides that, it is also has strong association between customer experience and the customer behavioral intention.
Lastly the sixth objective is to identify which atmospheric factors that Auto Bavaria has performed the best based on the customers’ evaluation from the questionnaire. Based on the reliability test, visual merchandising has the most stable Cronbach’s Alpha value among the other attributes. While based on the multiple regression analysis at standardized coefficients (Beta), visual merchandising was the strongest attributes that influence the customer exp erience which is 0.451. For the Pearson Correlation Analysis, visual merchandising also has best value which is 0.596 which is the nearest value to 1. By the way, if the researcher calculate manually (based on the customers’ perspectives) the attributes that have the most level of agreement based on the customers’ evaluation at the questionnaire is lighting which is 70%.
5.2 Conclusions
As a conclusion, the aim of this study is to investigate the relationship between store atmospheric attributes, customer experience and also the customers behavioral intention at Auto Bavaria Glenmarie. There are three objectives in total that the researcher able to achieve in this study. Based on the first model, the researcher has found that there are positive relationships between all the four store atmospheric attributes and only two independent variables (background music and visual merchandising) that are significantly have the relationship with customer experience at Auto Bavaria. To explain the insignificant values for lighting and color elements, according to Chain Store Age which is a magazine for retail executives, there are varieties elements of store atmosphere that retailers must put attention in order to make an appeal store. Chain Store Age also has conducted a survey among the customers and explore that the elements of cleanliness is to most influence factors to store environment. While the lighting and background music fall to the second and third tiers after the cleanliness factor (Chain Store Age, 2005). In addition, based on 81
the previous research by Choong et al (2011), their research also shows a not significant in the p value because more than 0.05. Based on the result, the positive and significant value for background music is fully supported by Yalch & Spangenberg (2000). In the study state that genre, rhythm and the background music volume was played in the retail store to manipulate and attract the customers in the store. The store’s visual merchandising becomes the main attributes that lead to the customer experience. This shows that the result get by the researcher supported the previous study and research. Visual merchandising is important elements that a retailer needs to be applied since it can bring impact on customer’s mind and perception (Pillai et al, 2011). Besides that, for the second model there is also a positive and significant relationship between customer experience and the customer behavioral intention. So, based on the research results that have been conducted, Auto Bavaria really needs to do innovation and improvements in order to create an appeal store atmosphere and after that, other than create exciting experience to the customers, Auto Bavaria also can be the competitive advantage among the other auto dealership (Han et al, 2011). From the analysis on store atmospheric attributes, as overall Auto Bavaria’s cu rrent atmosphere still acceptable and the customer can purchase their product or wait for their car’s service comfortably. However Auto Bavaria still needs some improvement in order to be competitive with the main competitors like Naza World, Ingress Auto, Audi, General Auto, and so on. A lot of business scholars said that every company and organization need to follow the trend and make paradigm movement from time to time or if possible making a small changes is better than never (Hill & Kerremans, 2007). The following paragraph, the researcher has concluded the respondent result based on the distributed questionnaire which is result from the respondents’ perspectives.
5.2.1 L ighti ng
Based on the result, 73.1 % which is majority of the respondents are strongly agree/ agree that the type of lighting used is compatible with environment of the store. While 75% of the 82
respondents agree that the lighting used in Auto Bavaria allow them to examine the products clearly since most of the product such as the car’s engine, specification and features need a thorough observation and check. 75.6% of the respondents agree that the lighting brightness level makes them comfortable being in the store. Due to the long waiting time for the customer car’s service, Auto Bavaria provide a lot of magazines, books and news for the customer to fill their time. So, with the help of a bright lighting, the customer can read and stay at the store comfortably. However only 50.6% of the respondents agree that the types of lighting use in Auto Bavaria looks exclusive.
It is because Auto Bavaria only use the compact fluorescent
lamps (CFLs) and some LEDs. The lighting pattern also looks common and it is known as recessed downlights. So, Auto Bavaria can take attention on this issue since Auto Bavaria is an automotive luxury store and all elements in the store also must have the exclusive and luxurious looks. By the way, a lot of respondents with 70.6% agree that the combination of natural lighting and the artificial lighting in Auto Bavaria is conveni ent.
5.2.2 Backgr ound M usic
Next, 61.5% of the respondent said that the types of background music genre played in the store are pleasant to be heard. However, the remaining respondents are not agreed with the background music. Since it was quite a big number, Auto Bavaria also needs to take a measure on this issue.
Besides that, f or the appropriateness of background music’s volume, 67.3% of
the respondent agreed with the volume which is not too loud and not too slow. While 58.9% of the respondents are agreed with the music rhythms played in the store can create enjoyment. It is because; a store that does not have background music sounds dull and creates a boring situation especially for the customer in waiting. The tempo of the background music are not succeed to makes the customer want to stay longer in the stay. Background music only achieves 44.9% among the respondents that agree with the statement. It is because only some customer like customers who are waiting for their car’s back from the service are really affect with the background music. Even the music genres played in the store are pleasant to be heard, but the background music in the store did not success to build interest among the respondents. Only 43% of the respondents are agreed with the statement. It is because majority of the customer are age 30 to 50 are no longer have the interest to hear music like techno, modern which is 83
more suitable for the young generation. Classical music is preferable to them since it can bring calmness to the customers.
5.2.3 Color
There are 60.2% of the respondents that are agreed the choices of the theme colors at auto Bavaria successfully to create their attention. Some of the remaining respondents are even not aware with the color in the store. Then, majority of the respondent with 55.8%, thoughts that the color apply in the store shows a trendy coordination. But some of the respondent said that, Auto Bavaria must put more color in the store to make it live and interesting. While for the color for the furniture and its fabric, only 54.5% of the respondent agreed that color of the furniture at Auto Bavaria looks elegance. It is important to serve elegance things at Auto Bavaria since this is a luxury type of store and the customer already pay a high price with the expectation to be served like a king. For the statement about the choices of the color combination at Auto Bavaria can bring a good emotion or not, 64.1% of the respondents are agreed with the statement. It is because, Auto Bavaria is play safe by having all white in color for the wall and earth color for the furniture, parquet, and decorations. For the customer, it is compatible since they have to wait for hours for their car. It is not a good choice for the red color to be in Auto Bavaria since red is reflecting with fast, hot and speed. However, only 41.7% of the respondents agreed that color used in the store able to create desires to purchase among the customers. Majority of them did not affect by the color and did not agree with the statement. It is not because of the store’s color they buy something due of that factor and some of the respondents tell that before they came to Auto Bavaria, they already have the thought to buy the car not because of the store atmosphere.
5.2.4 Visual M erch andising
54.5% of the respondents are satisfied with presentation of the merchandise in the store. The respondent are satisfied with display car and bikes arrangement, the gifts like t-shirt, jacket, blouse, toys and key chain, accessories like the travelling bag, mugs, bottle, thermos, parts like sports rims, additional engine accessories and so on. For the remaining respondents, they are not satisfied the merchandise presentation. Some of the customers ask to reduce the car display 84
and did not put the same model of car at a showroom and do enhancement at the accessories part. Besides that, only 42.9% of the respondent a greed that the props used in the store can give an inspiring idea to them. Majority of the respondents said that they are not affected with the props at Auto Bavaria and some of them said that the props are not enough and they ask for more props in order make Auto Bavaria as an appeal store. While 54.5% of the respondent agreed that the displays used in the store are very convincing. Some of the potential customers who come to Auto Bavaria still did not make any decision and they come to survey the potential car. So, the display car present at the showroom more or less contributes a big help to them in making any decision. Same with the display statement, the store decorations at Auto Bavaria present such an evocative presentation also agreed by 54.5% of the respondents. The decorations can be includes the frame, flowers, and so on. While 60.3% of the respondents are agreed that the visual merchandising success to create confidence. It is like their confidence to Auto Bavaria to be the main authorize dealer for BMW’s product by supporting of visual merchandising in the store.
5.2.5 Customer E xperi ence
Customer experience is important since it can bring either positive or negative word of mouth to the other consumers. It is bad when Auto Bavaria fail to give a good experience to the customers. It was a bad news that the lighting only has 39.1% of the respondents that agree the lighting can give impact to them. It is true that the lighting can assist the customers to check technical product, makes them comfortable while being in the store but it does not even give impact to the customer. Thus, Auto Bavaria can take revise back their marketing strategies especially in the choice of lighting. Same goes to the music background that only get 45.5% for the background music can create an enormous experience to the customers. Surprisingly, for a statement that color at Auto Bavaria can bring fascinating experience to the customer, 50% of the customers are agreed with it and 50% of the customers are not agreed with it. For the presentation of the visual merchandising whether it successful to create impressive experience or not, the response is 53.2% of the respondent are agreed with the statements. 60.8% of the respondents said that the store atmosphere at auto Bavaria success to create a positive image for
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the store. However, Auto Bavaria cannot ignore the other 39.2% of the respondents who did not agreed with the statement.
5.2.6 Customer B ehavior al I ntenti on
Only 42.3% of the respondents said that store atmosphere can help them to response positive behavioral intention. It is because the main factor that contributes to the behavioral intention is the financial status of an individual and also an individual’s interest on the best model offered at Auto Bavaria which means the customer already decided what they want to buy before they come to Auto Bavaria. Some of them, especially for those who are really had a stable financial source agreed that the store atmosphere can help in make decision. 51.9% of the respondents agreed that the store atmosphere makes them comfort while staying for a long period in the store. While 55.8% of the customers agreed that the atmospheric factors at Auto Bavaria are successful in putting trust to the customers. Trust among the customers is important to makes the customers to come again in the future and spreading a good word of mouth to the other peoples. Lastly 64.8% of the respondents will recommend other peoples who want to buy BMW’s product and 64.1% of the respondents will p urchase again in the future at Auto Bavaria since they are satisfied with the Auto Bavaria’s credibility plus with the best store atmosphere presentation.
5.3 Implications of the Study
According to the analytical discussions and conclusion review, this study proposed suggestions that can be taken as reference when retail industries especially in auto dealership want to make marketing strategies. Empirical studies show Auto Bavaria’s atmospheric attributes are positively correlated with the impact on customer experience and the other hand customer experience also have positive correlation with customer behavioral intention (Gillani, 2012). According to such conclusion that atmospheric factors significantly affect the customer experience, Auto Bavaria should pay attention to highlight functional value of atmospheric factors and promote customer’s perceived experience by reasonable display and also information presentation (Chen & Hsieh, 2011). 86
The aim of this research project is to identify the effect of store atmospheric attributes towards the customer experience and also their behavioral intention in Auto Bavaria Glenmarie can make as the representative of automotive & showroom sectors. Nowadays, the topics that related to the store atmosphere become a trend and popular topic among the researchers, businessman, organization, managers and retailers. It is because, this peoples start to realize that store atmosphere can reflect an image to a company (Gilboa & Rafaeli, 2003). However, many of the researchers do general research about the store atmosphere and did not specifically concentrate on the type of nature business or retail stores. Actually, different types of stores have different perspective of atmosphere attributes because it based on the type of product that the stores present. In this case, Auto Bavaria offer luxury and technical type of product in their store and the atmosphere factors cannot be same as other retail store like fashion and apparel store. By choosing luxury automotives as our research field, other researchers can enlarge this topic of study for the next research. This research will be the reference to all Malaysia automotive retailers especially in creating an appeal store atmosphere and showroom. Not only that, this research also can make the retailer realize whether their stores having a close gap with the current customers’ expectation or not. For this study, there are four attributes of store atmosphere being tested in order to identify the impact of each variable to the customer experience and also the customer behavioral intention at Auto Bavaria, Glenmarie. Customers who were also the respondent of the survey already gave their respond and having different feedbacks towards the 4 factors of store atmospheric attributes in Auto Bavaria. After the researcher do the research survey among the customers in Auto Bavaria, there are weaknesses can be traced and it was something valuable that Auto Bavaria need to show intensive care, improved and attention in term of enhancing the store atmosphere. Besides that, based on the feedback from the distributed questionnaire, the customer that want changes in order to create an appeal store atmosphere at Auto Bavaria is high which is 51% compared to 49% of the customer who are already satisfied with the current atmosphere . Besides that, this research also becomes one of the ways to approach and know the customer well. It is not easy
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to draw closer with customers if there are no reasons that we can get their information and opinion especially when it comes to the high class and influential group. Sometimes, a profit making organization did not view all this aesthetic value that can bring a different experience to the customers. Based on Pantano & Laria (2012), a lot of customers nowadays prefer the store atmosphere have the areas for relaxing, reading, eating, and drinking, which can enhance more their experience and influence their permanence during their visit to a store, So, because of that, Auto Bavaria can create a new position like retail officer that will taking care about the store atmosphere and the customer relation management. Besides that, Kumar, Garg & Rahman (2010) recommend that even when the store already in the acceptable range in term of atmosphere value, there are still room for improvement that the managerial must look for. It is true that conveying a competitive store image to customers is a big investment and also quite challenging task especially the organization already stands for more than 20 years in the market like Auto Bavaria. To build an enormous experience among the customer, retailers need to take cost effective measures to periodically change these significant factors. Although advertising and other promotional activities are important in communicating brand value, the atmospherics also has contributes to long term effect because they create a lasting impression on the consumers’ perception (Kumar et al, 2010).
5.4 Recommendations for Sime Darby Auto Bavaria Sdn Bhd
In this research, the atmospheric attributes in Auto Bavaria contributes 58.14% to the customers’ experiences and also to the purchase decision. It means that to some extent the atmosphere attribution study also help in build the customers’ experiences and also their behavioral intention. Among all the store atmospheric attributes lighting with 70% be the most attributes that gives impact to the customers in terms of experiences and the behavioral intention. Followed equally by background music and colour with respectively 55% and the last one is visual merchandising with 53% in giving impact to the customers at Auto Bavaria. Since the research conduct is an empirical study at Auto Bavaria, the researcher also proposed some recommendations to the company to improve and enhance the customer value through the store atmospheric attributes. The recommendations will be separately proposed based on the four (4) 88
categories of atmospheric attributes which are lighting, background music, color, and the visual merchandising.
Exclusive store atmosphere can be describes as the customers’ overall feeling of comfort, warmth, courtesy, acceptance, unique and exclusive (Ehbauer et al, 2011). Dardem et al stated that the physical attractiveness in a retail store contributes a higher impact on the store patronage compared to the product quality, assortment and pricing.
5.4.1 L ighti ng
Based on OSRAM (2013), using the right light in a retail store is a fundamental importance. Use the compatible lighting combination can attract the customers and also drive them in the right mood to buy, wait for their car’s repair and services, and also make the decision. Auto Bavaria needs to present a very technical, complex and need a thorough product examination; the use of the right light can expect more customers and higher sales. Based on Ehbauer & Gresel (2011), the physical facilities of a retail store such as elevator, lighting, air conditioner and washrooms also are very important to the store atmosphere. Modern and exclusive lighting can helps in promotes shop interiors by creating a stage sets and makes the product become the desire objects. Besides that, with modern electronic control gear allows lighting to be adjusted with flexible movement and also change needs and requirements.
In addition, Auto Bavaria also can install more eco friendly LED lighting in the store in order to support the world environment safe campaign. LED is the acronym for Light Emitting Diode. LED is a new innovative solution and provides better lighting for the whole retail environment. This type of lighting generates less heat and brings satisfaction brightness and it can bring comforts to the store visitor. It was tiny but extremely bring and durable light sources (Alaimo,2013)
Furthermore, the optimal application of prismatic daylighting/skylighting, glass windows and display in the retail space giving more opportunities to disperse and diffuse natural light. In Auto Bavaria, the store only uses the glass windows and display as their natural element but 89
still did not apply the prismatic skylighting. Some of the customers do not enjoy with exposing too much of light and it also can bring effect to the human health, so combining the natural lighting with the normal lighting are preferable and also bring convenient feeling to the customers. In opposite, if Auto Bavaria uses the wrong lighting or conventional lighting, it will result in making store and also their merchandise look sad and pale (RetailMerchandiser Magazine, 2009).
5.4.2 Backgr ound M usic
Good background music can create relaxed atmosphere, leads to customers spending more time in the store, feels comfortable, drive to excellent and enjoyable experience, leads the customers to visit the store again and also recommend to others (Kulkarni, 2012). Normally in auto dealership store, there are several zone and compartment that consists of showroom, sales area, service area, customer service, outdoor zone, mini bar, offices and so on. Many comments from the Auto Bavaria’s customer said that volume of the background music sometime cannot be heard due to the noise and low volume. Thus, Auto Bavaria needs to install a good amplification, loudspeakers, signal processing & routing system.
While interviewing the customers, many of them did not even realize the present of the background music. It is because the choice, volume, genre of the music did not successful to create interest among the customers in Auto Bavaria. In addition, the feedback from respondents shows only 67% of them agree/strongly agree that background music played in the store can enhance their interest.
Besides installing regular background music which is circulate over and over and make the customer bored, the other method that Auto Bavaria can use is creating their own radio station and make it as the most powerful marketing tools (Morrison, 2003). Having own radio station can entertain customer more live, fresh, trend, keeps customer engaged and informed during their store visit. Instead of playing the radio at the store, Auto Bavaria also can create an access for online radio in the company’s website. When having own radio station, Auto Bavaria can promotes their new model product, service packages, seasonal promotion, events, sponsorships
90
and so on. It is advice that did not expose too much advertisement in the radio, the radio must punctuate alternately with appropriate song (RetailRadio LLC, 2013).
Besides that, Auto Bavaria also can buy music program from DMX Music that usually work closely with retailers to create custom music program ‘soundscapes’. The p urposes of the music programs are to reach, excite and entertain the store visitors. DMX Music offer music expertise and they are experts in choosing appropriate music, volume based on the types of retail store. DMX Music also know how to develop a unique customised music solutions that make strategic links with specific target markets, retail promotions, in store activities, events and specific retail brands (Morrison, 2003).
5.4.3 Colour
Same with the music, colour also give 55% impact to the customer in term of experience and also the purchase decision. Some of the customers comment that Auto Bavaria especially is playing safe because they use all white in colour as their wall’s paint and also use the combination of earth colour such as black, brown, blue and grey in their furniture, parquet, showcase, and fabric. Besides that, the atmosphere is illuminated by few green plants which are grown in all white vases (Singh, 2006).
Since Auto Bavaria is an authorize dealer for BMW motors, Auto Bavaria need to follow their theme colour which is blue, black, and white. So, Auto Bavaria creatively needs to adjust the colour compatible with the store environment. Actually Auto Bavaria have the benefit to select their store’s theme colour since they must be attach and synchronize with BMW colour. There are many types of customers that come to Auto Bavaria which is customer that already make their purchase and come to service or repair their cars, customers who want to purchase, and the customer who want to survey their dream car and they still not decided whether they want to buy or not. Because there are scenarios that the customers must to wait for their cars or time to make decision, Auto Bavaria can help all this customers to calm and relax their mind by providing an appeal atmosphere (Singh, 2006).
91
Since the customers have their waiting time and Auto Bavaria also has the benefits to use blue as their theme colour, it is good Auto Bavaria can add up the blue elements in the store because using light or medium blue can instill a sense of calm in peoples. It is also reminiscent of the ocean and sky which is also the elements that build a sense of peace (Reynold, 2013).
On the other hand, all retailers especially Auto Bavaria normally has long understood about the importance of store environments in enhancing the purchase experience. Nowadays, a lot of companies invest in green building. One of the efforts to support the green campaign is putting the green plants in the building. Green plants and flowers makes the store looks more comfortable and realistic (Pantano et al, 2012). Green plants and landscapes in a retail store able to create more healthy, friendly and favourable situations for retail activities compared to the store that do not have or less green plants in the store (Engel et al.1990). It will create healthy environment since green plant can reduce the carbon dioxide and also have been verify by a lot of medical expertise such as Dr Virginia Lohr from Washington State University that green plants significantly can reduce people’s stress and create a good emotion.
5.4.4 Visual M erch andising
Since visual merchandising performs the lowest percentage which is 53% from the customer’s response, Auto Bavaria’s managers need to take more attention and do some improvement on these issues. Some of the respondents said that the merchandise such as shirt, gift, accessories, and parts in the shelf, showcase, and rack are not properly arranged. It automatically cannot put confidence into the customers. While the showroom that presenting the display cars and superbike are quite scattered and do not meet safety features. It is because the arrangement of the display car in the store is stacked too close to each other. It will cause difficulties to divert or move the vehicles if any emergencies cases like fire occur in the store. The respondent also tells that the decorations in Auto Bavaria are not enough unless there are events and festive seasons like Hari Raya, Charismas, Deepavali, Chinese New Year and so on.
Nowadays, retailers use visual merchandising as part of store decor and design. Based on White (2012), Auto Bavaria need to take the challenge to be unique and different since unusual, big displays, decoration, and props are really help in attracting the customer’s eyes and interest. 92
Besides that, customers nowadays are very alert on what the retailers can offer and show to the customers. So, Auto Bavaria can take this opportunities to provide something novelty and unique which is the visual merchandising presentation must have not seen in any auto dealership before. Only then Auto Bavaria can provide an exciting and wonderful experience to the customers (Pillai et al, 2011).
Next, present the visual merchandising in symmetry and keep it balance also will help the store to be presentable and convincing. By keep it balances and orderly also will resulting in impulse purchase since it looks worth of buying (White, 2012).
Visual merchandising is also going to be modern and digital. Since the appeal of immersive technologies for visitors, retailers who introduce these ones would attract more visitors and achieve more advantages over the other competitors. For example, f lat screen TV’s are being utilized everywhere and even in Auto Bavaria also have it as their treat to the customer who waits for a very long hours for their car to be service or repair. However, a lot of customer have disappointed because the TV are not informative at all. It is because the TV only show news in headline and it keep repeating over and over. Besides that, the TV also put automotive TV program and show more or less like top gear, speed TV, and fifth gear but there is no point since there are no subtitles or sounds that we can hear from it since the TVs are in mute setting. It is because Auto Bavaria already has their own background music, so the TVs must be put in mute setting. So, what auto Bavaria can do with the flat TV is presenting some qualities advertisement and without sound also the visitors can un derstand it well (Dunne et al, 2011).
5.5 Recommendations for Future Research
When there are limitations of studies, it will create issues that are hardly to be resolved. So, the researcher must put more effort and being more discipline in order to produce a valid result and good research in the future. According to Wang, R.Y. et al (1995), in order to achieve more accurate data, the researcher must choose more reliable sample or group of respondent by
93
having close relationship with the conducted research since the research covers all the opinion of the respondent about a specific issues or information.
Furthermore, a few of open-ended type of questions should be put into the questionnaire since it can provide more specific and detail responses from the respondents and a lot of unanticipated findings can be discovered in the research (Naser, 2012). Apart from assisting in create positive learning and sharing the information, having some open ended questions in a questionnaire also can make the researcher become more creative in managing all the data since there are different answers from various perspectives of peoples. Those unforeseen feedbacks given by the respondents actually can improve the whole research’s result (Reja et al, 20 03).
Based on Poswell & Hermann (2000), getting a good response in a research survey is important to increase the validity and accuracy of the result. Powell & Hermann also said that a survey must be done systematically and also having a standardized way of collecting data and information from the respondents. Since there are various different methods to conduct a survey, the researcher can use the way that best fits based on the purpose, topics, target audiences and also the resources. The researcher also needs to spend adequate time planning in order to make sure all the aspects are well thought out (Poswell & Hermann, 2000).
Based on Comrey et al (1992), a high response rate promotes the confidence in the research’s result. Response rate can be defined as the proportion of people in a particular sample that involve in a survey conducted. Lower response rates will result in biased results. Based on James & Bollstein (1990), giving the appropriate incentives or gift up front can be an effective method to encourage participation.
Back into the research topics, based on Crossman (2013), in the future, other researcher can investigate structural or direct relationships for this study. For an example, to study the relationship between the store atmospheric attributes, customer s’ experiences and the customer’s behavioral intention (SAA
CE
CBI). It is different from this study which
is investigate a separate relationship which is to study the relationship between the store atmospheric attributes and the customers’ experiences (SAA 94
CE) and another model is to
study the relationship between the customer experiences and the customer behavioral intention (CE
CBI). It was recommended because conducting a structural relationship will provide
a better result compared to investigate the relationships separately.
Besides that, the future research also can explore other factors of store atmosphere such as the temperature, cleanliness, facilities, layout, design, and scent since all of these factors also are important to create an appeal store atmosphere. Future research also can study other store atmosphere from different retail industries or sectors such as fashion, electronic, convenient, pharmacies and so on. Other than customers’ experiences and their behavioral intention, other researcher also can see other element of customer’s evaluation such as in terms of loyalty, retention, purchase decision, satisfaction, expectation, needs, wants, perception and many more. On the other hand, the researcher also can do a specific research about one of the store atmospheric factors. For an example, investigate the impact of visual merchandising to the customer’s purchase decision. It is because conducting a more specific research can help the researcher to focus on the selected topics without having a deviation problem.
95
REFERENCES
1.
Babin, B.J., Attaway, J.S. (2000). Atmospheric affect as a Tool for Creating Value and Gaining Share of Customer. Journal Business Research. 49. pp.91-99.
2.
Baker, J., Parasuraman, A., Grewal, D., Voss, G.B. (2002). The Influence of Multiple Store Environment Cues on Perceived Merchandise Value and Patronage Intentions. Journal of Marketing. 66. pp.120-141.
3.
Banat, A., Wandeburi, H. (2012). Store Design and Store Atmosphere Effect on Customer Sales per visit. 2nd International Conference on Business, Economics, Management and Behavioral Sciences.
4.
Bellizzi, J.A., Crowley,A.E., Hasty, R.W. (2001). The Effects of Color in Store Design. The Journal of Retailing. 59(1). 21-45
5.
Bloemer, J., Ruyter, K.D. (1998). On The Relationship between Store Image, Store Satisfaction and Store Loyalty. European Journal of Marketing. 32(5). pp. 499-513.
6.
Bohl, P. (2011). The Effect of Store Atmosphere on Shopping Behavior- A Literature Review.
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Chen, H.S., Hsieh,T. (2011). The Effect of Atmosphere on Customer Perceptions and Customer Behavior Responses in Chain Store Supermarkets. African Journal of Business Management. 5(24). pp. 10054-10066.
8.
Cook, T.M. (1999). Customer Purchase Decision Model- An Enhancement to Customer Fast. Save International Conference Proceedings. 61- 63.
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Ehbauer, M., Gresel, R. (2012). Measuring and Managing Service Performance of Luxury Stores: Development of a Balanced Scorecard. EBS Business School. German
10. Elst,
H.V.
(2013).
Foundations
of
Descriptive
and
Inferential
Statistics.
Karlshochschule International University. 36-38 11. Han, C.R., Li, K.S., Yen, L.B., Fei, Y.S. (2011). Investigate the Influence of Store Atmosphere on Customer Patronage Intention towards Clothing Stores in Malaysia. University of Tunku Abdul Rahman.
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12. Han, S.L., Han, D. (1995). Effects of Design Factors and Shopping Types on Consumer Mood and Retail Image in Korean Retail Market. pp. 67-79. 13. Johnston, R., Kong, X. (2011). The Customer Experience: A Road Map for Improvement. Managing Service Quality. 21(1). 5-24 14. Kim, J. (2013). A Study on the Effect that Visual Merchandising Design (V.M.D) in Store has on Purchasing Products. International Journal of Smart Home. 7(4). pp. 217-223 15. Kouchekian, M., Gharibpoor, M. (2013). Investigation the Relationship between Visual Merchandising and Customer Buying Decision Case Study: Isfahan Hypermarkets. International Journal of Academic Research in Economics and Management Sciences. 1(2). 268-279 16. Kumar, I., Garg, R., Rahman. (2010). Influence of Retail Atmospherics on Customer Value in an Emerging Market Condition. Great Lakes Herald, 4(1). 17. Kulkarni, V.R. (2012). A Study of Impact of Music on Customer Buying Behavior in Retail. International Journal of Management. 3(3). 152-159. 18. Morisson, M. (2003). The Power of In-Store Music and its Influence on International Retail Brands and Shopper Behavior: A Multi Case study Approach. 19. Nath, C.K. (2009). Behaviour of Customers in Retail Store Environment- an Empirical Study. XIMB Journal of Management. pp.63-74. 20. Nell, C. (2013). Exploring the influence of store atmospherics on consumers’ buying behavior in apparel retail stores: an exploratory study in Tshwane. University of South Africa 21. Oh, J., Fiorito, S.S., Cho, H., Hofacker, C.F. (2007). Effects of Design Factors on Store Image and Expectation of Merchandise Quality in Web Based Stores. Journal of Retailing and Consumer Services. 22. Pantano, E., Laria, G. (2012). Innovation in Retail Process: From Consumers’ Experience to Immersive Store Design. Journal of Technology Management & Innovation. 7(3). pp. 195-205. 23. Pillai, R., Iqbal, A., Umer, H.,Maqbool, A., Sunil, N. (2011). Design, effectiveness and role of visual merchandising in creating customer appeal. Munich Personal RePEC Archive. 97
24. Powell, E.T., Hermann, C. (2000). Collecting Evaluation Data: Surveys. Program Development and Evaluation. 25. Quartier, K., Christiaans, H., Cleempoel, K.V. (2008). Retail Design: Lighting as an Atmospheric Tool, Creating Experiences which Influence Consumers’ Mood and Behavior in Commercial Spaces. Design Research Society Conference 2008. 26. Sangvikar, B.V., Katole, H.J. (2012). A Study of Consumer Purchase Behavior in Organized Retail Outlets. Journal of Business and Retail Management Research. 7(1). pp. 40-47 27. Sekaran, U., Bougie, R. (2009). Research Methods for Business: A Skill Building Approach. A John Wiley and Sons, Ltd, Publication 28. Singh, S. (2006). Current Research Development: Impact of Color on Marketing. Management Decision. Emerald Group Publishing Limited. 44(6). 783-789. 29. Tendai, M., Crispen, C. (2009). In Store Shopping Environment and Impulse Buying. African Journal of Marketing Management. 1(4). pp.102-108 30. Tlapana, T.P. (2009). Store Layout and its Impact on Consumer Purchasing Behavior at Convenience Stores in Kwa Mashu. Durban University of Technology. 31. Turley, L.W. Milliman, R.E. (2000). Atmospheric Effects on Shopping Behavior: A Review of the Experimental Evidence. Journal of Business Research. 49. 193211. 32. Yalcin, M., Kocamaz, T. (2003). The Effect of Store Atmosphere Attributes on Store Loyalty Intentions of Hypermarket/ Supermarket Customers. pp. 273 -292 33. Yoo, C., Park, J., Maclnnis, D.J. (1998). Effect of Store Characteristics and In Store Emotional Experiences on Store Attitude. Journal of Business Research. 42. pp. 253-263. 34. Tatt, K.E. (2010). Factors Influencing Consumer Buying Behaviour of Luxury Branded Goods. Universiti Sains Malaysia.
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APPENDICES 1. Questionnaire 2. SPSS Data Analysis 3. Pictures
99
APPENDIX 1.0
MARA UNIVERSITY OF TECHNOLOGY FACULTY OF BUSINESS MANAGEMENT BACHELOR OF BUSINESS ADMINISTRATION (RETAIL MANAGEMENT)
Dear respondent, I am Akmal Syalwani Binti Idris, a final year student from Universiti Teknologi Mara Shah Alam. I would like to conduct a final year research on a project entitled “The impact of store atmospheric attributes on customer’s experience and their behavioral intention at Auto Bavaria”. The main objective of this study is to know the customer ’s perception about the contributing factors to store atmosphere at Auto Bavaria and its effect to the customer in term of experience and behavioral intention. Your cooperation in completing this questionnaire is so appreciated. All information would remain strictly confidential and only be used for re search purpose. Thank You. SECTION A: GENERAL INFORMATION Please tick (/) the answer that is most relevant to you.
1. What type of product did you intend to buy or already purchase at Auto Bavaria? (You can tick two from the answers provided) BMW Car MINI Cooper Motorrad (BMW Motorcycle/Bike/Scooter) BPS (BMW Premium Selection) BMW Part & Accessories Gift and Souvenir Others 2. Do you think Auto Bavaria needs to do some changes in order to create an appealing store atmosphere? Yes No 1
3. How do you know Auto Bavaria? (You can tick two from the answers provided) Advertising Family/ Friends Internet Self awareness Event Others SECTION B: STORE ATMOSPHERIC ATTRIBUTION
This section is to acquire your opinions about each factors of store atmosphere on background music, lighting, color, and visual merchandising. Please indicate the level of agreement with each statement by ticking (/) in the appropriate column. 1 Strongly Disagree
2 Disagree
3 Neutral
4 Agree
5 Strongly Agree
LIGHTING
Lighting is important as this is one of the key elements that contribute to identity, comfort, concept, image, theme and visual quality of a retail store. No.
I tems
M ark your r esponse
1.
1
2
3
4
5
1
2
3
4
5
1
2
3
4
5
4.
The type of lighting used is compatible with environment of the store. The lighting used in the store allows me to examine the products clearly. The lighting level of brightness makes me comfortable being in the store. The lighting used in the store looks exclusive.
1
2
3
4
5
5.
The combination of natural lighting in the store is convenient.
1
2
3
4
5
2. 3.
BACKGROUND MUSIC
Background music in a retail setting plays many important roles such as music has long been known to be able to influence moods and lift the spirits.
2
No.
I tems tems
M ark your your r esponse ponse
1.
The background music genres are pleasant to hear.
1
2
3
4
5
2.
For me, the volume of the background music is appropriate.
1
2
3
4
5
3.
I really enjoy the rhythm of the background music in the store.
1
2
3
4
5
4.
The tempo of the background music makes me want to stay longer in the store. The background music played in the store can enhance my interest.
1
2
3
4
5
1
2
3
4
5
5.
COLOR
Color psychology becomes the critical issues in retail store since it can be the determinant of customer purchase behavior. No.
I tems tems
M ark your your r esponse ponse
1.
1
2
3
4
5
2.
Choices of the theme colors at the store successfully to create attention. The colors apply in the store shows a trendy coordination.
1
2
3
4
5
3.
The color of the furniture and its fabric looks elegance.
1
2
3
4
5
4.
For me, the choices of the color combination create a good emotion.
1
2
3
4
5
5.
The color used in the store able to create desires to purchase.
1
2
3
4
5
VISUAL MERCHANDISING
Visual merchandising are includes the combination of products, environments and spaces into a motivating and engaging displays and arranging merchandise assortments within a store to improve the layout and appearance. No.
I tems tems
M ark your your r esponse ponse
1.
I am satisfied with the merchandise presentation in the store.
1
2
3
4
5
2.
The creative props used in the store give an inspiring idea to me.
1
2
3
4
5
3.
For me, the displays used in the store are very convincing.
1
2
3
4
5
4.
The store decorations also create an evocative presentation.
1
2
3
4
5
5.
The store visual merchandising success to create confidence in me.
1
2
3
4
5
SECTION C: CUSTOMER REVIEW
In this section, please evaluate various items by circling your answer based on your experience during your visit at Auto Bavaria.
3
CUSTOMER EXPERIENCE No.
I tems tems
M ark your your r esponse ponse
1.
The lighting in the store gives an impact to me.
1
2
3
4
5
2.
The background music creates an enormous experience to me.
1
2
3
4
5
3.
The colors in the store also bring a fascinating experience to me.
1
2
3
4
5
4.
The presentation of the visual merchandising successful in creating an impressive experience. The atmospheric attributes success to create a positive image in this store.
1
2
3
4
5
1
2
3
4
5
5.
CUSTOMER ’S ’S BEHAVIORAL INTENTION
No.
Items
Mark your response
1.
The atmospheric attributes in the store help me to make a decision.
1
2
3
4
5
2.
The store atmosphere makes me comfort to stay longer in the store.
1
2
3
4
5
3.
The atmospheric factors in this store are successful in putting trust in me. I would like to recommend other peoples to come and buy product or service from this store. I would like to purchase again in the future.
1
2
3
4
5
1
2
3
4
5
1
2
3
4
5
4. 5.
SECTION D: DEMOGRAPHIC PROFILE Please mark (/) the appropriate respond in the box provided. provided.
1. Gender: Male Female 2. Age: Less than 25 years old 26 – 30 30 years old 31 – 40 40 years old 41 – 50 50 years old 51 – 60 60 years old 61 – 65 65 years old More than 66 years old 3. Nationality: Malaysian Non- Malaysian 4
4. Race: Malay Chinese Indian Others (please specify) ______________________ _________________________ ___
5. Highest academic qualification: PhD Masters Bachelors Diploma Malaysian Certificate of Education (SPM) Others (please specify) ______________________ ___________________________ _____ 6. Employment status: Government Semi-government/ Statutory body Self-employment/ Businessman Private Sector Pensioner Others (please specify) ______________________ ___________________________ _____
SECTION E: RECOMMENDATIONS/COMMENTS (The comment given must be related to the store)
______________________ _________________________________ ______________________ ______________________ _______________________ __________________ ______ ______________________ _________________________________ ______________________ ______________________ _______________________ __________________ ______ ______________________ _________________________________ ______________________ ______________________ ______________________ __________________ _______ Thank you for your time & cooperation! ----------------------------------------------------------------------- --------------------------The --The end -------------------------------------------------------------------- ------------------------------
5
APPENDIX 2.0 A. FREQUENCY DISTRIBUTION ANALYSIS
Gender Statistics
The respondents' gender Valid
156
N Missing
0
The respondents' gender
Frequency
Percent
Valid Percent
Cumulative Percent
Male Valid
Female Total
100
64.1
64.1
64.1
56
35.9
35.9
100.0
156
100.0
100.0
Age Statistics
The respondents' age Valid
156
N Missing
0
The respondents' age
Frequency
Percent
Valid Percent
Cumulative Percent
Less than 25 years old
12
7.7
7.7
7.7
26-30 years old
22
14.1
14.1
21.8
31-40 years old
42
26.9
26.9
48.7
41- 50 years old
46
29.5
29.5
78.2
51-60 years old
24
15.4
15.4
93.6
61-65 years old
6
3.8
3.8
97.4
More than 66 years old
4
2.6
2.6
100.0
156
100.0
100.0
Valid
Total
6
Nationality
Statistics
The respondents' nationality Valid
156
N Missing
0
The respondents' nationality
Frequency
Percent
Valid Percent
Cumulative Percent
Malaysian Valid
Non Malaysian Total
150
96.2
96.2
96.2
6
3.8
3.8
100.0
156
100.0
100.0
Race
Statistics
The respondents' race Valid
156
N Missing
0
The respondents' race
Frequency
Percent
Valid Percent
Cumulative Percent
Valid
Malay
96
61.5
61.5
61.5
Chinese
36
23.1
23.1
84.6
Indian
16
10.3
10.3
94.9
Others
8
5.1
5.1
100.0
156
100.0
100.0
Total
7
Highest Academic Qualification Statistics
The respondent highest academic qualification Valid
156
N Missing
0
The respondent highest academic qualification
Frequency
Percent
Valid Percent
Cumulative Percent
PHD
Valid
4
2.6
2.6
2.6
Masters
26
16.7
16.7
19.2
Bachelors
66
42.3
42.3
61.5
Diploma
29
18.6
18.6
80.1
SPM
24
15.4
15.4
95.5
7
4.5
4.5
100.0
156
100.0
100.0
Others Total
Employment Status Statistics
The respondent employment status Valid
156
N Missing
0
The respondent employment status
Frequency
Percent
Valid Percent
Cumulative Percent
Government
3
1.9
1.9
1.9
8
5.1
5.1
7.1
47
30.1
30.1
37.2
Private sector
75
48.1
48.1
85.3
Pensioner
11
7.1
7.1
92.3
Others
12
7.7
7.7
100.0
Total
156
100.0
100.0
Semi Government/ Statutory body Self Employment/ Valid
Businessman
8
Respondents’ first product purchase Statistics
First product purchase Valid
156
N Missing
0
First product purchase
Frequency
Percent
Valid Percent
Cumulative Percent
BMW Car
99
63.5
63.5
63.5
MINI Cooper
22
14.1
14.1
77.6
Motorrad
18
11.5
11.5
89.1
BPS
7
4.5
4.5
93.6
Parts & Accessories
1
.6
.6
94.2
Gifts & Souvenirs
1
.6
.6
94.9
Others
8
5.1
5.1
100.0
156
100.0
100.0
Valid
Total
Respondents’ second product purchase
Statistics
Second product purchase Valid
156
N Missing
0
Second product purchase
Frequency
Percent
Valid Percent
Cumulative Percent
Valid
MINI Cooper
5
3.2
3.2
3.2
Motorrad
9
5.8
5.8
9.0
BPS
5
3.2
3.2
12.2
Parts & Accessories
18
11.5
11.5
23.7
Gifts & Souvenirs
12
7.7
7.7
31.4
None
107
68.6
68.6
100.0
Total
156
100.0
100.0
9
Changes for appealing store atmosphere Statistics
Auto Bavaria's changes Valid
156
N Missing
0
Auto Bavaria's changes
Frequency
Percent
Valid Percent
Cumulative Percent
Valid
Yes
79
50.6
50.6
50.6
No
77
49.4
49.4
100.0
156
100.0
100.0
Total
The way respondents’ know about Auto Bavaria (1) Statistics
How the respondents know Auto Bavaria Valid
156
N Missing
0
How the respondents know Auto Bavaria
Frequency
Percent
Valid Percent
Cumulative Percent
Valid
Advertising
53
34.0
34.0
34.0
Peoples
31
19.9
19.9
53.8
Internet
12
7.7
7.7
61.5
Self Awareness
48
30.8
30.8
92.3
Events
6
3.8
3.8
96.2
Others
6
3.8
3.8
100.0
156
100.0
100.0
Total
10
The way respondents’ know about Auto Bavaria (2) Statistics
How the respondents know Auto Bavaria Valid
156
N Missing
0
How the respondents know Auto Bavaria
Frequency
Percent
Valid Percent
Cumulative Percent
Peoples
30
19.2
19.2
19.2
Internet
16
10.3
10.3
29.5
Self Awareness
14
9.0
9.0
38.5
Events
24
15.4
15.4
53.8
Others
15
9.6
9.6
63.5
None
57
36.5
36.5
100.0
Total
156
100.0
100.0
Valid
B. RELIABILITY TEST
Lighting
Case Processing Summary
N Valid Excluded a
Cases
Total
% 156
100.0
0
.0
156
100.0
a. Listwise deletion based on all variables in the procedure.
Reliability Statistics
Cronbach's Alpha .868
N of Items 5
11
Background Music Case Processing Summary
N Valid Excluded a
Cases
Total
% 156
100.0
0
.0
156
100.0
a. Listwise deletion based on all variables in the procedure.
Reliability Statistics
Cronbach's Alpha
N of Items
.897
5
Color Case Processing Summary
N Valid Excluded a
Cases
Total
% 156
100.0
0
.0
156
100.0
a. Listwise deletion based on all variables in the procedure.
Reliability Statistics
Cronbach's Alpha .864
N of Items 5
12
Visual Merchandising
Case Processing Summary
N Valid Excluded a
Cases
Total
% 156
100.0
0
.0
156
100.0
a. Listwise deletion based on all variables in the procedure.
Reliability Statistics
Cronbach's Alpha
N of Items
.917
5
Customers’ Experience s
Case Processing Summary
N Valid Excluded a
Cases
Total
% 156
100.0
0
.0
156
100.0
a. Listwise deletion based on all variables in the procedure.
Reliability Statistics
Cronbach's Alpha .878
N of Items 5
13
Customer ’s behavioural intention
Case Processing Summary
N
%
Valid Excluded a
Cases
Total
156
100.0
0
.0
156
100.0
a. Listwise deletion based on all variables in the procedure.
Reliability Statistics
Cronbach's Alpha
N of Items
.887
5
C. CENTRAL TENDENCIES MEASUREMENT OF CONSTRUCTS
Lighting
Descriptive Statistics
The
The
Level of
The
Combinatio
Valid N
compatibili
lighting
brightness
exclusivity
n of natural
(listwise)
ty of
allows to
makes
of the
lighting
lighting
examine
comfortabl
lighting
types
products
e
N
Statistic
156
156
156
156
156
Minimum
Statistic
2
2
1
1
1
Maximum
Statistic
5
5
5
5
5
Statistic
3.87
3.91
3.94
3.56
3.87
Std. Error
.059
.056
.063
.076
.065
Std. Deviation
Statistic
.737
.694
.793
.952
.809
Variance
Statistic
.543
.482
.628
.906
.654
Statistic
-.370
-.230
-.751
-.326
-.576
Std. Error
.194
.194
.194
.194
.194
Statistic
.070
-.055
1.376
.140
.856
Std. Error
.386
.386
.386
.386
.386
Mean
Skewness
Kurtosis
14
156
The compatibility types of lighting
Frequency
Percent
Valid Percent
Cumulative Percent
Disagree
Valid
6
3.8
3.8
3.8
Neutral
36
23.1
23.1
26.9
Agree
87
55.8
55.8
82.7
Strongly agree
27
17.3
17.3
100.0
156
100.0
100.0
Total
The lighting allows to examine products
Frequency
Percent
Valid Percent
Cumulative Percent
Disagree
Valid
3
1.9
1.9
1.9
Neutral
36
23.1
23.1
25.0
Agree
89
57.1
57.1
82.1
Strongly agree
28
17.9
17.9
100.0
156
100.0
100.0
Total
Level of brightness makes comfortable
Frequency
Percent
Valid Percent
Cumulative Percent
Strongly disagree
2
1.3
1.3
1.3
Disagree
3
1.9
1.9
3.2
Neutral
33
21.2
21.2
24.4
Agree
83
53.2
53.2
77.6
Strongly agree
35
22.4
22.4
100.0
156
100.0
100.0
Valid
Total
The exclusivity of the lighting
Frequency
Percent
Valid Percent
Cumulative Percent
Strongly disagree
5
3.2
3.2
3.2
Disagree
9
5.8
5.8
9.0
Neutral
63
40.4
40.4
49.4
Agree
52
33.3
33.3
82.7
Strongly agree
27
17.3
17.3
100.0
156
100.0
100.0
Valid
Total
15
Combination of natural lighting
Frequency
Percent
Valid Percent
Cumulative Percent
Strongly disagree
2
1.3
1.3
1.3
Disagree
3
1.9
1.9
3.2
Neutral
41
26.3
26.3
29.5
Agree
77
49.4
49.4
78.8
Strongly agree
33
21.2
21.2
100.0
156
100.0
100.0
Valid
Total
Background Music Descriptive Statistics
Music
Appropriateness of
The rythm of
The tempo
Music can
Valid N
genre
music volume
music
makes customer
enhance
(listwise)
background
want to stay
interest
longer N
Statistic
156
156
156
156
156
Minimum
Statistic
1
1
1
1
1
Maximum
Statistic
5
5
5
5
5
Statistic
3.66
3.66
3.53
3.33
3.23
Std. Error
.079
.081
.076
.079
.085
Std. Deviation
Statistic
.987
1.013
.947
.986
1.065
Variance
Statistic
.974
1.026
.896
.972
1.133
Statistic
-.741
-.936
-.583
-.385
-.312
Std. Error
.194
.194
.194
.194
.194
Statistic
.575
.654
-.028
-.015
-.425
Std. Error
.386
.386
.386
.386
.386
Mean
Skewness
Kurtosis
Music genre
Frequency
Percent
Valid Percent
Cumulative Percent
Strongly disagree
7
4.5
4.5
4.5
Disagree
8
5.1
5.1
9.6
Neutral
45
28.8
28.8
38.5
Agree
67
42.9
42.9
81.4
Strongly agree
29
18.6
18.6
100.0
156
100.0
100.0
Valid
Total
16
156
Appropriateness of music volume
Frequency
Percent
Valid Percent
Cumulative Percent
Strongly disagree
8
5.1
5.1
5.1
Disagree
12
7.7
7.7
12.8
Neutral
31
19.9
19.9
32.7
Agree
79
50.6
50.6
83.3
Strongly agree
26
16.7
16.7
100.0
156
100.0
100.0
Valid
Total
The rhythm of background music
Frequency
Percent
Valid Percent
Cumulative Percent
Strongly disagree
4
2.6
2.6
2.6
Disagree
20
12.8
12.8
15.4
Neutral
40
25.6
25.6
41.0
Agree
74
47.4
47.4
88.5
Strongly agree
18
11.5
11.5
100.0
156
100.0
100.0
Valid
Total
The tempo makes customer want to stay longer
Frequency
Percent
Valid Percent
Cumulative Percent
Strongly disagree
8
5.1
5.1
5.1
Disagree
18
11.5
11.5
16.7
Neutral
60
38.5
38.5
55.1
Agree
54
34.6
34.6
89.7
Strongly agree
16
10.3
10.3
100.0
156
100.0
100.0
Valid
Total
Music can enhance interest
Frequency
Percent
Valid Percent
Cumulative Percent
Strongly disagree
11
7.1
7.1
7.1
Disagree
25
16.0
16.0
23.1
Neutral
53
34.0
34.0
57.1
Agree
51
32.7
32.7
89.7
Strongly agree
16
10.3
10.3
100.0
156
100.0
100.0
Valid
Total
17
Color Descriptive Statistics
Theme
Colors shows a
The color for
Color
Color can
Valid N
color
trendy
furniture looks
combination
create desires
(listwise)
choices
coordination
elegance
can create good
to buy
emotion N
Statistic
156
156
156
156
156
Minimum
Statistic
1
1
1
1
1
Maximum
Statistic
5
5
5
5
5
Statistic
3.62
3.59
3.58
3.70
3.31
Std. Error
.073
.076
.074
.065
.078
Std. Deviation
Statistic
.911
.950
.930
.815
.976
Variance
Statistic
.830
.902
.864
.663
.952
Statistic
-.523
-.422
-.393
-.554
-.246
Std. Error
.194
.194
.194
.194
.194
Statistic
.149
.025
.142
.666
-.057
Std. Error
.386
.386
.386
.386
.386
Mean
Skewness
Kurtosis
The choices of theme colours
Frequency
Percent
Valid Percent
Cumulative Percent
Strongly disagree
3
1.9
1.9
1.9
Disagree
14
9.0
9.0
10.9
Neutral
45
28.8
28.8
39.7
Agree
71
45.5
45.5
85.3
Strongly agree
23
14.7
14.7
100.0
156
100.0
100.0
Valid
Total
Colors shows a trendy coordination
Frequency
Percent
Valid Percent
Cumulative Percent
Strongly disagree
4
2.6
2.6
2.6
Disagree
13
8.3
8.3
10.9
Neutral
52
33.3
33.3
44.2
Agree
61
39.1
39.1
83.3
Strongly agree
26
16.7
16.7
100.0
156
100.0
100.0
Valid
Total
18
156
The color for furniture looks elegance
Frequency
Percent
Valid Percent
Cumulative Percent
Strongly disagree
4
2.6
2.6
2.6
Disagree
11
7.1
7.1
9.6
Neutral
56
35.9
35.9
45.5
Agree
60
38.5
38.5
84.0
Strongly agree
25
16.0
16.0
100.0
156
100.0
100.0
Valid
Total
Color combination can create good emotion
Frequency
Percent
Valid Percent
Cumulative Percent
Strongly disagree
2
1.3
1.3
1.3
Disagree
8
5.1
5.1
6.4
Neutral
46
29.5
29.5
35.9
Agree
79
50.6
50.6
86.5
Strongly agree
21
13.5
13.5
100.0
156
100.0
100.0
Valid
Total
Color can create desires to buy
Frequency
Percent
Valid Percent
Cumulative Percent
Strongly disagree
7
4.5
4.5
4.5
Disagree
19
12.2
12.2
16.7
Neutral
65
41.7
41.7
58.3
Agree
48
30.8
30.8
89.1
Strongly agree
17
10.9
10.9
100.0
156
100.0
100.0
Valid
Total
19
Visual Merchandising
Descriptive Statistics
Merchandise
The props
The displays
The decorations
Visual
Valid N
presentation
can gives
are very
create an
Merchandising
(listwise)
satisfaction
inspiring idea
convincing
evocative
create customers'
presentation
confidence
N
Statistic
156
156
156
156
156
Minimum
Statistic
1
1
1
1
1
Maximum
Statistic
5
5
5
5
5
Statistic
3.46
3.33
3.53
3.57
3.63
Std. Error
.083
.075
.079
.079
.073
Mean Std. Deviation
Statistic
1.031
.939
.987
.984
.917
Variance
Statistic
1.063
.882
.974
.969
.842
Statistic
-.557
-.288
-.440
-.240
-.512
.194
.194
.194
.194
.194
-.086
.060
-.117
-.609
.112
.386
.386
.386
.386
.386
Skewness
Std. Error Statistic
Kurtosis Std. Error
Merchandise presentation satisfaction
Frequency
Percent
Valid Percent
Cumulative Percent
Strongly disagree
8
5.1
5.1
5.1
Disagree
18
11.5
11.5
16.7
Neutral
45
28.8
28.8
45.5
Agree
64
41.0
41.0
86.5
Strongly agree
21
13.5
13.5
100.0
156
100.0
100.0
Valid
Total
The props can gives inspiring idea
Frequency
Percent
Valid Percent
Cumulative Percent
Strongly disagree
6
3.8
3.8
3.8
Disagree
18
11.5
11.5
15.4
Neutral
65
41.7
41.7
57.1
Agree
52
33.3
33.3
90.4
Strongly agree
15
9.6
9.6
100.0
156
100.0
100.0
Valid
Total
20
156
The displays are very convincing
Frequency
Percent
Valid Percent
Cumulative Percent
Strongly disagree
5
3.2
3.2
3.2
Disagree
17
10.9
10.9
14.1
Neutral
49
31.4
31.4
45.5
Agree
61
39.1
39.1
84.6
Strongly agree
24
15.4
15.4
100.0
156
100.0
100.0
Valid
Total
The decorations create an evocative presentation
Frequency
Percent
Valid Percent
Cumulative Percent
Strongly disagree
2
1.3
1.3
1.3
Disagree
21
13.5
13.5
14.7
Neutral
48
30.8
30.8
45.5
Agree
56
35.9
35.9
81.4
Strongly agree
29
18.6
18.6
100.0
156
100.0
100.0
Valid
Total
Visual Merchandising create customers' confidence
Frequency
Percent
Valid Percent
Cumulative Percent
Strongly disagree
3
1.9
1.9
1.9
Disagree
14
9.0
9.0
10.9
Neutral
45
28.8
28.8
39.7
Agree
70
44.9
44.9
84.6
Strongly agree
24
15.4
15.4
100.0
156
100.0
100.0
Valid
Total
21
Customer Experience
Descriptive Statistics
The lighting
The music
The colors
The visual
The
Valid N
give impact
create
bring
merchandising
atmosphere
(listwise)
to the
enormous
fascinating
create impressive
success to
respondent
experience
experience
experience
create positive image to the store
N
Statistic
156
156
156
156
156
Minimum
Statistic
1
1
1
1
1
Maximum
Statistic
5
5
5
5
5
Statistic
3.36
3.37
3.47
3.52
3.71
Std. Error
.064
.071
.070
.072
.069
Std. Deviation
Statistic
.795
.888
.876
.905
.865
Variance
Statistic
.632
.788
.767
.819
.749
Statistic
.044
-.397
-.485
-.428
-.372
Std. Error
.194
.194
.194
.194
.194
Statistic
.352
.271
.622
.233
.143
Std. Error
.386
.386
.386
.386
.386
Mean
Skewness
Kurtosis
The lighting give impact to the respondent
Frequency
Percent
Valid Percent
Cumulative Percent
Strongly disagree
2
1.3
1.3
1.3
Disagree
13
8.3
8.3
9.6
Neutral
80
51.3
51.3
60.9
Agree
49
31.4
31.4
92.3
Strongly agree
12
7.7
7.7
100.0
156
100.0
100.0
Valid
Total
The music create enormous experience
Frequency
Percent
Valid Percent
Cumulative Percent
Strongly disagree
5
3.2
3.2
3.2
Disagree
16
10.3
10.3
13.5
Neutral
64
41.0
41.0
54.5
Agree
59
37.8
37.8
92.3
Strongly agree
12
7.7
7.7
100.0
156
100.0
100.0
Valid
Total
22
156
The colors bring fascinating experience
Frequency
Percent
Valid Percent
Cumulative Percent
Strongly disagree
5
3.2
3.2
3.2
Disagree
10
6.4
6.4
9.6
Neutral
63
40.4
40.4
50.0
Agree
63
40.4
40.4
90.4
Strongly agree
15
9.6
9.6
100.0
156
100.0
100.0
Valid
Total
The visual merchandising create impressive experience
Frequency
Percent
Valid Percent
Cumulative Percent
Strongly disagree
4
2.6
2.6
2.6
Disagree
13
8.3
8.3
10.9
Neutral
56
35.9
35.9
46.8
Agree
64
41.0
41.0
87.8
Strongly agree
19
12.2
12.2
100.0
156
100.0
100.0
Valid
Total
The atmosphere success to create positive image to the store
Frequency
Percent
Valid Percent
Cumulative Percent
Strongly disagree
2
1.3
1.3
1.3
Disagree
8
5.1
5.1
6.4
Neutral
51
32.7
32.7
39.1
Agree
67
42.9
42.9
82.1
Strongly agree
28
17.9
17.9
100.0
156
100.0
100.0
Valid
Total
23
Customer Behavioural Intention
Descriptive Statistics
The
The
The
Recommend to
Purchase
Valid N
atmosphere
atmosphere
atmosphere
other peoples
again in the
(listwise)
help in make
comfort to stay
success put
to come and
future
decision
long
trust
buy
N
Statistic
156
156
156
156
156
Minimum
Statistic
1
1
1
2
1
Maximum
Statistic
5
5
5
5
5
Statistic
3.32
3.47
3.51
3.75
3.72
Std. Error
.069
.070
.071
.065
.071
Std. Deviation
Statistic
.858
.876
.891
.808
.891
Variance
Statistic
.735
.767
.793
.653
.794
Statistic
-.298
-.388
-.649
-.255
-.424
Std. Error
.194
.194
.194
.194
.194
Statistic
.202
.100
.598
-.359
-.219
Std. Error
.386
.386
.386
.386
.386
Mean
Skewness
Kurtosis
The atmosphere help in make decision
Frequency
Percent
Valid Percent
Cumulative Percent
Strongly disagree
4
2.6
2.6
2.6
Disagree
18
11.5
11.5
14.1
Neutral
68
43.6
43.6
57.7
Agree
56
35.9
35.9
93.6
Strongly agree
10
6.4
6.4
100.0
156
100.0
100.0
Valid
Total
The atmosphere comfort to stay long
Frequency
Percent
Valid Percent
Cumulative Percent
Strongly disagree
3
1.9
1.9
1.9
Disagree
16
10.3
10.3
12.2
Neutral
56
35.9
35.9
48.1
Agree
66
42.3
42.3
90.4
Strongly agree
15
9.6
9.6
100.0
156
100.0
100.0
Valid
Total
24
156
The atmosphere success put trust
Frequency
Percent
Valid Percent
Cumulative Percent
Strongly disagree
5
3.2
3.2
3.2
Disagree
12
7.7
7.7
10.9
Neutral
52
33.3
33.3
44.2
Agree
72
46.2
46.2
90.4
Strongly agree
15
9.6
9.6
100.0
156
100.0
100.0
Valid
Total
Recommend to other peoples to come and buy
Frequency
Percent
Valid Percent
Cumulative Percent
Valid
Disagree
10
6.4
6.4
6.4
Neutral
45
28.8
28.8
35.3
Agree
75
48.1
48.1
83.3
Strongly agree
26
16.7
16.7
100.0
156
100.0
100.0
Total
Purchase again in the future
Frequency
Percent
Valid Percent
Cumulative Percent
Strongly disagree
1
.6
.6
.6
Disagree
14
9.0
9.0
9.6
Neutral
41
26.3
26.3
35.9
Agree
71
45.5
45.5
81.4
Strongly agree
29
18.6
18.6
100.0
156
100.0
100.0
Valid
Total
25
D. EXPLORATORY FACTOR ANALYSIS Communalities Initial The compatibility of lighting
Extraction
1.000
.761
1.000
.750
1.000
.782
1.000
.613
1.000
.662
1.000
.672
1.000
.642
1.000
.815
1.000
.799
Music can enhance interest
1.000
.670
Theme color choices
1.000
.686
1.000
.695
1.000
.744
1.000
.673
1.000
.550
1.000
.727
1.000
.762
1.000
.830
1.000
.768
1.000
.771
1.000
.568
types The lighting allows to examine products Level of brightness makes comfortable The exclusivity of the lighting Combination of natural lighting Music genre Appropriateness of music volume The rythm of music background The tempo makes customer want to stay longer
Colors shows a trendy coordination The color for furniture looks elegance Color combination can create good emotion Color can create desires to buy Merchandise presentation satisfaction The props can gives inspiring idea The displays are very convincing The decorations create an evocative presentation Visual Merchandising create customers' confidence The lighting give impact to the respondent
26
The music create enormous experience The colors bring fascinating experience
1.000
.755
1.000
.785
1.000
.787
1.000
.683
1.000
.639
1.000
.710
1.000
.723
1.000
.813
1.000
.751
The visual merchandising create impressive experience The atmosphere success to create positive image to the store The atmosphere help in make decision The atmosphere comfort to stay long The atmosphere success put trust Recommend to other peoples to come and buy Purchase again in the future
Extraction Method: Principal Component Analysis. Component Matrixa Component 1 The atmosphere comfort to stay long Visual Merchandising create customers' confidence The displays are very convincing The decorations create an evocative presentation The atmosphere success put trust The rythm of music background The music create enormous experience The colors bring fascinating experience Color combination can create good emotion Music genre
2
3
4
.753
.747
.732
.726
.710
.706
.693
-.504
.688
.677 .659 27
5
6
The props can gives inspiring idea
.656
The visual merchandising create impressive
.650
experience Recommend to other peoples to come and buy The atmosphere help in make decision The tempo makes customer want to stay longer Theme color choices
.647
-.578
.642
.632 .628
The atmosphere success to create positive image to the
.615
store Combination of natural lighting The color for furniture looks elegance Colors shows a trendy coordination Appropriateness of music volume Color can create desires to buy Level of brightness makes comfortable The exclusivity of the lighting Merchandise presentation satisfaction Music can enhance interest The lighting give impact to the respondent
.610
.605
.595
.587
.583
.567
.561
.560 .546 .506
The lighting allows to
.538
examine products The compatibility of lighting types
.522
.528
Purchase again in the future
-.647
Extraction Method: Principal Component Analysis. a. 6 components extracted.
28
Rotated Component Matrixa Component 1 The displays are very convincing Merchandise presentation satisfaction The props can gives inspiring idea The decorations create an evocative presentation Visual Merchandising create customers' confidence The tempo makes customer want to stay longer The rythm of music background Music can enhance interest Appropriateness of music volume Music genre
2
3
4
5
6
.800
.791
.780
.742
.714
.832
.794 .777 .736 .692
The color for furniture looks
.801
elegance Colors shows a trendy
.754
coordination Theme color choices
.736
Color combination can
.699
create good emotion Color can create desires to
L
.589
buy The lighting allows to
.852
examine products The compatibility of lighting
.849
types Level of brightness makes
.827
comfortable Combination of natural
.707
lighting The exclusivity of the
.578
lighting Purchase again in the future
.836
Recommend to other
.820
peoples to come and buy 29
The atmosphere success
.701
put trust The atmosphere help in
.644
make decision The atmosphere comfort to
.622
stay long The colors bring fascinating
.781
experience The visual merchandising create impressive
.745
experience The atmosphere success to create positive image to the
.716
store The lighting give impact to
.677
the respondent The music create enormous
.670
experience Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization. a. Rotation converged in 7 iterations.
30
APPENDIX 3.0 PICTURES
31
