Abstract
Purpose – The study assesses the effect of hedonic and utilitarian motivations on the perception of atmosphere and service quality, on satisfaction, and on repurchase intention in a Brazilian retail chain of silver jewelers. Design/methodology/approach – A mall-intercept survey of 160 consumers and a structural equation model analysis were conducted using the SmartPLS software. Also, the research data were subjected to partial least squares multigroup analysis (PLS-MGA). Findings – In general, the store’s display/layout and customer service significantly impacted the customer’s satisfaction and repurchase intention. Utilitarian consumers showed greater satisfaction in stores with background music. Hedonic consumers showed a strong relationship between the store display/layout and the customer service, and also between satisfaction and repurchase intention, indicating that the satisfaction they encounter with the store’s atmosphere and service leads to repurchase intention. Originality/value – Hedonic and utilitarian consumers differ in the cognitive procedures that are activated while shopping. By offering a store atmosphere tailored to the customers’ orientations and decisions, retailers can increase consumer satisfaction of both hedonic and utilitarian consumers. In theory, the study addresses consumer motivation theory within the retail atmosphere, specifically gift shops in the silver jewelry segment.
Highlights
Growing numbers of shopkeepers are transforming their stores into pleasurable and stimulating shopping environments; that is, planned environments that create or reinforce consumer induction to purchase a product
Considering that satisfied consumers are more likely to stay with a company for longer periods and that behavioral intentions directly impact the company’s profitability (Udo, Bagchi, & Kirs, 2010), it is important for retailers to differentiate themselves by satisfying the needs of their consumers in a better way than their competitors (Dabholkar, Thorpe, & Rentz, 1996)
Consumers perceive service environments in a holistic way and their reactions to a physical environment depend on the set of effects or configurations (Lovelock & Wirtz, 2011)
Summary
Growing numbers of shopkeepers are transforming their stores into pleasurable and stimulating shopping environments; that is, planned environments that create or reinforce consumer induction to purchase a product. The notion that the atmosphere influences consumer behavior is widely accepted in marketing literature (Turley & Milliman, 2000). Consumers perceive service environments in a holistic way and their reactions to a physical environment depend on the set of effects or configurations (Lovelock & Wirtz, 2011). Consumers examine the physical aspects of the service environment to compensate for the fact that service experience is intangible (Kotler, Ayes, & Bloom, 2002; Singh, Katiyar, & Verma, 2014). The literature emphasizes the difficulty of measuring intangible and subjective aspects of a service environment (Grewal, Levy, & Kumar, 2009)
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