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Measuring Customer Emotional Connect in Retail Environments | Insight 2015 NID | Sanjay Agarwal

Measuring Customers Emotional connect in


Retail Environment

Measuring Customer Emotional Connect in Retail Environments | Insight 2015 NID | Sanjay Agarwal

1/23/2015

INTRODUCTION
Competing in todays global market is becoming increasingly difficult. Since customers nowadays often perceive products
and services as homogeneous, retailers and manufacturers continuously need to look for differentiation strategies [1].

Differentiating oneself from the competitor by creating memorable customer


experiences is therefore becoming one of the central objectives of many retail store
environments [2].
Customers look for personal, intuitive relationships with brands and retailers [3,4]. Directing the stores retail design
towards the creation of memorable customer experience. Customer experiences in retail settings appear to immerse
customers at a cognitive, emotional and intuitive level [5], A retail experience which succeeds in delivering value to the
customer can become the key to long-term retailer success.
References
[1] Petermans, A. & Van Cleempoel, K. (2009) Retail Design and the Experience Economy: Where Are We (Going)? Design Principles and Practices
[2] Verhoef, P., Lemon, K., Parasuraman, A., Roggeveen, A., Tsiros, M. & Schlesinger, L. (2009) Customer Experience Creation: Determinants, Dynamics and Management Strategies, Journal of Retailing
[3] Van Tongeren, M. (2003) Retail Branding. From Stopping Power to Shopping Power, BIS Publishers, Amsterdam.
[4] Van Tongeren, M. (2004) Retail Branding. In R. van Amerongen & H. Christiaans (Eds.), Retail & Interior Design, Episode Publishers, Rotterdam.
[5] Healy, M., Beverland, M., Oppewal, H. & Sands, S. (2007) Understanding Retail Experiences - The case for Ethnography, International Journal of Market Research

Measuring Customer Emotional Connect in Retail Environments | Insight 2015 NID | Sanjay Agarwal

RETAIL DESIGN
In todays experience economy, design has gained status in retail management. Retail design specifically focuses on
several aspects that need to be considered when creating retail stores.

When customers visit a retail store, they immediately make an association between the products sold in the store, their
price, the stores tone of voice and ambience and the retailers presence and identity. Design of retail store environments
nowadays needs to provide inspiration to customers [6], retailers and designers need to be on the same wavelength as
their target group.

Thinking about how retailers and designers can understand what appeals functionally and
emotionally to customers, brings us to concepts of customer experience and experience

economy.

References
[6] Bckstrm, K. & Johansson, U. (2006). Creating and Consuming Experiences in Retail Store Environments: Comparing Retailer and Consumer Perspectives, Journal of Retailing and Consumer Services

Measuring Customer Emotional Connect in Retail Environments | Insight 2015 NID | Sanjay Agarwal

CUSTOMER EXPERIENCES
The concept customer experience was formulated as a new experiential approach to consumer behaviour. The customer
was considered to be a rational decision-taker, who tried to purchase the best product from an available selection of
products at a reasonable price [7]. However, that in contrast to this rational and utilitarian approach, some consumption

activities were better explained by an experiential approach.

The experience concept came to the fore in the management discipline as a new economic
offering, which emerges as the next phase after an economy of commodities, goods and
services.

However, the original conceptualization of the experience economy was criticized. One of the main points of criticism was
the potential significance of creating customer experiences is the lack of empirical support [2,6].
References
[2] Verhoef, P., Lemon, K., Parasuraman, A., Roggeveen, A., Tsiros, M. & Schlesinger, L. (2009) Customer Experience Creation: Determinants, Dynamics and Management Strategies, Journal of Retailing
[6] Bckstrm, K. & Johansson, U. (2006). Creating and Consuming Experiences in Retail Store Environments: Comparing Retailer and Consumer Perspectives, Journal of Retailing and Consumer Services
[7] Fiore, A. & Kim, J. (2007) An Integrative Framework capturing Experiential and Utilitarian Shopping Experience, Internati onal Journal of Retail & Distribution Management

Measuring Customer Emotional Connect in Retail Environments | Insight 2015 NID | Sanjay Agarwal

Science of Emotions

Measuring Customer Emotional Connect in Retail Environments | Insight 2015 NID | Sanjay Agarwal

Science Of Emotions
Display

Technology & VM
fun
lighting
engaging interactive
informative
seasonal
highlights
new launches

Smell
fragrance
comfortable
intimidating

recall
relaxing
familiar

In-store
Communication &
Collaterals
attractive recall
clear informative
communicative
placement
Measuring Customer Emotional Connect in Retail Environments | Insight 2015 NID | Sanjay Agarwal

categorized
cluttered
organized
color blocking
easy

polite

Staff
approachable

groomed

welcoming

well informed

trained

Music
emotions happy
comfortable relate
thematic

Science Of Emotions

Soothing | Calm | Relaxing


Pumped Up | Loud | Energetic

Measuring Customer Emotional Connect in Retail Environments | Insight 2015 NID | Sanjay Agarwal

MEASURING EMOTIONS
Measuring emotions, triggered by consumption activities in general, has proven not to be an easy task. However, the
question which is the appropriate way to measure these kinds of emotional states is still a matter of debate [8].

Given the multitude of existing emotion measurement instruments, it was necessary to set up criteria for selecting three
research methods:

1-the PAD framework, frequently used in marketing [9]


2-the Product Emotion Measurement Instrument

(PrEmo),

developed in the product design

discipline [10]
3-a free report task, which consists of asking customers to describe in their own words the
emotions they experienced while visiting a store [8,11].
References
[8] Srensen, J. (2008) Measuring Emotions in a Consumer Decision-Making Context Approaching or Avoiding. Aalborg University, Department of Business Studies, Aalborg.
[9] Pine, J. & Gilmore, J. (1999) The Experience Economy. Work is Theatre and Every Business a Stage, Harvard Business School Press, Boston.
[10] Desmet, P. (2002). Designing Emotions. Doctoral Dissertation, Technische Universiteit Delft, Delft.
[11] Poels, K. & Dewitte, S. (2006) How to capture the Heart? Reviewing 20 years of Emotion Measurement in Advertising, Katholieke Universiteit Leuven, Faculty of Economics and Applied Economics, Leuven.

Measuring Customer Emotional Connect in Retail Environments | Insight 2015 NID | Sanjay Agarwal

1/23/2015

PAD Emotional State Model


Isolated environmental cues in retail store environments can evoke emotional responses in customers, and that such
emotional responses can, in turn, influence customers retail patronage and store loyalty [12]. It was stated that three basic
emotional dimensions (Pleasure,

Arousal and Dominance)

provide a general description of emotions, generated

by (stimuli in) an environment.

These emotional states mediate a persons approach or avoidance responses to the environment,

The PAD scale was designed to capture information concerning the pleasure, arousal and dominance dimensions,
underlying emotional states. The PAD framework has been widely used in marketing and consumer research.
PAD MODEL
Environment Stimuli

Emotional States:
Pleasure
Arousal
Dominance

Approach or
Avoidance

Source: Mehrabian & Russell, 1974

References
[12] Turley, L. & Milliman, R. (2000) Atmospheric Effects on Shopping Behavior: a Review of the Experimental Evidence, Journal of Business Research

Measuring Customer Emotional Connect in Retail Environments | Insight 2015 NID | Sanjay Agarwal

1/23/2015

PAD Emotional State Model


Pleasure

Pleased

Displeased

Exciting

Boring

Easy

Uneasy

Happy

Unhappy

Satisfied

Dissatisfied

Arousal
Inspired

Usual

Dominance
Guided

Measuring Customer Emotional Connect in Retail Environments | Insight 2015 NID | Sanjay Agarwal

Lost

Comfort

Discomfort

1/23/2015

Methodology

Measuring Customer Emotional Connect in Retail Environments | Insight 2015 NID | Sanjay Agarwal

METHODOLOGY
A survey was conducted in the form of a PAD questionnaire which recorded the store experience (Food & Non Food
Stores) of shoppers based on their emotional quotient.

The PAD measure consists of three separate dimensions (pleasure, arousal & dominance), which are assessed using six
semantic differential items. Every item from the different dimensions is measured on a 3 point scale [13] where :

- 0 being neutral

- 1 being the least


- 3 being the highest

Any additional remarks/ feedback was also recorded.

References
[13] Mehrabian, A. & Russell, J. (1974) An Approach to Environmental Psychology, MIT Press, Cambridge.

Measuring Customer Emotional Connect in Retail Environments | Insight 2015 NID | Sanjay Agarwal

Questionnaire Sample

Stores | Non Food

Ed Hardy| Levis| Allen Solly | Puma | U.S Polo | Zara


Measuring Customer Emotional Connect in Retail Environments | Insight 2015 NID | Sanjay Agarwal

Stores | Food

Natures Basket| Namdharis | Spencers | Nilgiris | MG 1 Food Hall


Measuring Customer Emotional Connect in Retail Environments | Insight 2015 NID | Sanjay Agarwal

Location of Stores | Bangalore

Rajajinagar

Indiranagar
Whitefield

Koramangala
Jayanagar

- 40 Stores and 120 customers in total were covered across food and non-food categories.

Non-food

Food
Natures Basket
Nilgiris
Namdhari's
Spencers
MK Ahmed

Measuring Customer Emotional Connect in Retail Environments | Insight 2015 NID | Sanjay Agarwal

UCB
Helios
Titan Eye
AND
Croma

Sony
Van Heusen
Louis Philippe
US Polo
Ed Hardy

GKB Opticals
Jealous
Chumbak
ZARA
Charles & Keith

PAD | Analysis

GKB Opticals
Jealous
Chumbak
ZARA
Charles & Keith

Measuring Customer Emotional Connect in Retail Environments | Insight 2015 NID | Sanjay Agarwal

NON FOOD STORE I PLEASURE Positive Vs Negative

Measuring Customer Emotional Connect in Retail Environments | Insight 2015 NID | Sanjay Agarwal

NON FOOD STORE I AROUSAL Positive Vs Negative

Measuring Customer Emotional Connect in Retail Environments | Insight 2015 NID | Sanjay Agarwal

NON FOOD STORE I DOMINANCE Positive Vs Negative

Measuring Customer Emotional Connect in Retail Environments | Insight 2015 NID | Sanjay Agarwal

FOOD STORE I PLEASURE Positive Vs Negative

Measuring Customer Emotional Connect in Retail Environments | Insight 2015 NID | Sanjay Agarwal

FOOD STORE I AROUSAL Positive Vs Negative

Measuring Customer Emotional Connect in Retail Environments | Insight 2015 NID | Sanjay Agarwal

FOOD STORE I DOMINANCE Positive Vs Negative

Measuring Customer Emotional Connect in Retail Environments | Insight 2015 NID | Sanjay Agarwal

FOOD STORE

Measuring Customer Emotional Connect in Retail Environments | Insight 2015 NID | Sanjay Agarwal

NON FOOD STORE

PAD I AVERAGE COMPARISION

Measuring Customer Emotional Connect in Retail Environments | Insight 2015 NID | Sanjay Agarwal

Customer Insights
The products are very fresh & the store is very pleasant. I feel very comfortable
while shopping here.
The staff is very helpful & friendly. I feel at ease and relaxed.
I usually have problems in getting the right size.
There is no place where my mother can sit & relax while I am doing the
purchasing which is quite inconvenient.
I love the ambience and the music of the store, it gets me pumped up and gives
me a happy feeling
Despite of having 3 billing counters only one is used which results to never
ending queues. Definitely tests my patience.
The store is very cluttered & unorganized. There are no directions or instore
signage's. The only reason I can find my way is because I am a regular had I been
a new customer I would definitely have had been lost.
I find the store very intimidating, I feel uneasy and uncomfortable
while I am shopping here.

Measuring Customer Emotional Connect in Retail Environments | Insight 2015 NID | Sanjay Agarwal

Conclusion

Measuring Customer Emotional Connect in Retail Environments | Insight 2015 NID | Sanjay Agarwal

Consumer Journey & Shopping Experience


MAIN DISPLAY

MAIN DISPLAY

MAIN DISPLAY

Window
Display

CUSTOMER
EXPERIENCE /
EMOTIONS

Exciting
Inspired

New Arrivals /
Niche Display

Guided

MAIN DISPLAY

Cash
Counter

Satisfied
Pleased
Happy

Measuring Customer Emotional Connect in Retail Environments | Insight 2015 NID | Sanjay Agarwal

Trial
Room

Pleased
Guided

Technology

Easy
Comfort
Relaxed

Inspired
Exciting

1/23/2015

Who Customers Are


DRIFTERS

GRAZERS

Unfocused individuals,
shopping-lovers who wander
the store and explore deeply

Unfocused shoppers who


wander the entire store
without delving too deeply

PLANNERS

Very narrowly focused


shoppers who come in
knowing exactly what they
want and dont deviate from
that idea

Very focused shoppers who


are primarily after specific
items, but look at others as
well.

NON-FOOD

Are Seeking:
Excitement
Ease
Inspiration
Comfort

PRAGMATISTS

FOOD

Are Seeking:
Excitement
Ease
Inspiration
Comfort

Measuring Customer Emotional Connect in Retail Environments | Insight 2015 NID | Sanjay Agarwal

Are Seeking:
Pleasure
Ease
Satisfaction
Guidence

Are Seeking:
Pleasure
Ease
Satisfaction

1/23/2015

The End

Credits:
Author: Sanjay Agarwal
Research Assistance: Mansi Patel
Data and Presentation Assistance: Surbhi Gupta
Survey Assistance: Aarushi, Rakhee, Deepika, Surbhi, Pavithra,
Ameeshi

Measuring Customer Emotional Connect in Retail Environments | Insight 2015 NID | Sanjay Agarwal

1/23/2015

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