Hence, the expanding application of scent as a component of store atmosphere that led to increase the awareness in consumer marketing. To adopt scent marketing strategy into service process to increase shopper’s cognitive and behavioural responses by retail settings. Since retail atmospherics mediate the duration and frequency of the shopping trip, which has direct affection to spending, average sales transactions, even a lift of the sales significantly (PEOPO, 2008).
Therefore, to investigate the trend which use of scent as atmospheric cue as marketing strategy by retail stores in Hong Kong, researches will be conducted in relation to Hong Kong market because the market is still in infancy stage but high potential to grow (BRANDCFE, 2007).
By concluding the observation that scent marketing has been well established and widely use to improve service experience. "Our body needs us to breathe, so that scent marking prevails hard selling", which is reveal the effectiveness of scent marketing is fruitful because people may ignore the message that the posters conveys or they may neglect the salesmen’s persuading words (BOSS, 2010). As scent will be directly channeled to Limbic System. That can process the human's emotion and memorizing the effectiveness of the sub-conscience and consuming behavior which is passively affected by scent (NEWSTATE, 2010).
The purposes for this study are to provide information of human behaviour toward scent marketing in retail industry of Hong Kong. This study provides timely and meaningful to this industry. On the other hand, the aspect of this research towards retail industry as academic research which is to furnish a clearer picture how scent marketing can carry out in Hong Kong.
After determine the purpose of this study, the summarized research aim is as follow: “To study Consumer Perception as Mediators of the Ambient Scent on Purchasing Behavior in Retail Store (Duty-Free). The factors affecting the intention to actual purchase are effect of scent, perceptions of merchandise quality and global environment, as well as the amount of spending in a retail store with the mediating role of evaluating the shoppers’ purchasing behaviour and attitudes toward the moderating role of gender which applies to retail store.
As previously stated, this study is to examine the effect of ambient scent on consumer perceptions and purchasing behaviour in Hong Kong retail store. In order to undertake this research, Theoretical framework is necessary for analyzing the influences. The following section will explore the various theories and the available of literature findings which is relevant fields of interest that service environment, scent as environmental cues, effects on perceptions and behaviour, as well as those have potentially apropos of moderating variables of gender.
Ambient Scent and Marketing
Atmospherics are subset of widespread research streams on physical environment in service industry (Baker, 1989; Bitner, 1986; Booms and Bitner, 1982). Based on some extensive literature review that indicated the retail environment is undoubtedly influence shoppers’ behaviour (Turley and Milliman, 2000) and increase sales (Stanley and Sewall, 1976). In addition, retail atmosphere can mediate merchandise evaluation (Wheatly and Chiu, 1977; Rappoport, 1982; Bitner, 1986) and customer satisfaction (Bitner, 1990). Moreover, customer attitudes toward retail store environment as well as products (Darden and Erdem, 1983).
Atmospherics and Service Environment
The atmospherics concept defined the effort to create desirable environment of buying process is needed to induce consumer emotional responses and increase the probability of purchase ultimately. Hence, atmosphere form an undeniable competitive advantage (Kotler, 1973; Mehrabian and Russell, 1974; Baker, 1986; Bitner, 1992; Baker, Grewal and Parasuraman, 1994).
The Theoretical Models of Consumer Response to Atmosphere is based on the framework of Stimulus-Organism-Response (SOR) paradigm (Donovan and Rossiter, 1982; Spangenberg, Crowly and Henderson, 1996) as follow:
The pleasure-arousal-dominance (PAD) Model (1974)
Mehrabian and Russell proffered theoretical model in which emotional states are elicited by environment stimuli and act as mediators to acquired affective responses rather than approach-avoidance behaviour. Environmental cues coming out from the physical circumfluent can excite voluntary or involuntary emotional reactions.
Servicescape Model (1992)
As clientele and employees both perceived the objective environmental cues, Bitner designed the integrated framework about the effect of physical surrounding on consumers and service personnel interactions. In turn, the approach or avoidance reactions can be qualified toward surroundings (Mehrabian and Russell, 1974).
Perceptions toward environmental cues led to certain emotions, beliefs and physiological sensations that influence behaviors (Bitner, 1992). Service setting is notion of non-verbal communication that affected shoppers’ beliefs of organization, employees and merchandise by cognitive responses. Therefore, that can affect the shoppers with unrelated beliefs and emotions toward service setting (Bitner, 1992).
Model of Influence of Ambient Scent on Consumer Responses (1995)
Gulas and Bloch based illustration the effects of ambient scent toward emotions and behaviours. The ambient scent is objectively assumed that is dependent on different individuals and the seal acuity of individuals under the physical environment (Gulas and Bloch, 1995).
Scent awareness and emotions as potential moderators that comprise other atmospheric factors and congruity of scent can evaluate the products offering and assessments of the overall service setting (Gulas and Bloch, 1995).
Then, environmental psychology models are beneficial in determining the pertinent methods and measures required to examine and analyze the impact of atmospheric cues on consumer responses to retail setting (Spangenberg, Crowley and Henderson, 1996).
The following conceptual foundations proposed the current study is based and from which the research hypotheses were drawn. It presents comprehended and potential influences of the ambient scent as atmospheric cue on various consumer responses, which previously outlined in prior sections. Detailed methodology of information which to be collected for the research will be provided next section.
Conceptual Background and Model
The present research such as Stimulus-Organism-Response (SOR) paradigm (1974), as well as Bitner’s Servicescape conceptualization (1992) takes the foundation in environmental psychology. The proposed model is in addition consistent with Gulas and Bloch’s Model of Olfaction Effects (1995). Also, it is affiliated with Lazarus’s “cognition-emotion” theory (1991), which sustained the preeminence of cognitions with the effects of ambient stimuli on evaluation toward the retail setting and affective responses.
This study designed differs from those atmospheric studies as that will not assumed shoppers’ emotions will play a role in hypothesized relationships. It examines the paths of link from environmental cue to consumer perceptions and purchasing behaviour. The approach is in concurrence with the Elaboration Likelihood Model, which provided support the belief of attitudes can be differentiated from affect (Cacioppo and Petty, 1989). The conceptualization evidence has revealed that affective responses are not developed by ambient scent all the time (Yalch and Spangenberg, 1993; Spangenberg, Clowley and Henderson, 1996; Bone and Ellen, 1999).
Consequently, the proposed flow (Figure. 1) limited the research to study the effects of environmental stimuli, ambient scent. It not only assesses the impact of internal evaluations, perceptions of merchandise quality and global environment, but also assess on an approach-related measure, purchasing behaviour. Hence, the model predict that perceptions will have mediating affect to the spending related to the retail service setting and the gender will moderate the relationship among the ambient cue and consumers; evaluation and behavior reactions.
Fig.1 The proposed flow for hypotheses testing
Accordingly, based on conceptual model of the above, research objectives are as follows:
Provide comprehensive understanding of ambient scent as an environmental cue impact on shoppers’ perceptions regarding retail store in Hong Kong.
Justify the factors leading to the phenomenon in order to design the desire service environment of retail store to shoppers that affects the purchasing behaviour of actual expenditure.
Determine the assessment of whether male or female (gender) that affected by retail store atmospherics.
Evaluate the scent marketing strategy as differentiating tools for retail store can be improved.
Research Hypotheses
The existence and valid studies between retail settings, shoppers’ perceptions and intended behavioural responses and reactions have been established by numerous researchers (Bitner, 1990; Baker, Levy and Grewal, 1992). Hence, the research hypotheses on the impact of ambient scent are primarily in the following, which based on the literature related to the main stream, individual shopper interactive influenced by environmental stimuli on empirical evidence.
The conclusive findings about the influence of atmospheric stimuli on merchandise evaluations in the relevant studies (Gardner and Siomkos, 1986). The following hypotheses are derived through cognitive approach and processing to atmospheric cue (Shostack, 1977; Lazarus, 1991). That is concordance with the study that discovered the existence of pleasant ambient scent positively affect shoppers’ perceptions toward product quality and the retail setting (Spangenberg, Crowley and Henderson, 1996). Also, the assessment of global environment and retail density could be affected by similar fragrance that influences shoppers’ cognitive responses (Michon, Chebat and Turley, 2005). Moreover, many journal founded that merchandise and retail setting are inference concern with environmental cues (Gardner and Siomkos, 1986). Since atmosphere contains multidimensional concept, which assumed that impact of associated environmental factors will be greater than the sum of its parts (Gulas and Bloch, 1995). It is therefore hypothesized that:
The direct and positive relationship among the existence of pleasant ambient scents and intentions of purchase, with consumer spending of transaction have established in studies (Hirsch and Gay, 1991; Hirsch, 1995; Spangenberg, Crowley and Henderson, 1996). Nonetheless, presence of scent demonstrated may certainly affect shoppers’ shopping time and frequency, even chances of return to store to acquire the products (Bone and Ellen, 1999). Thus, it is hypothesized that:
As mentioned before, theory of “cognition-emotion” supported that emotional responses can be engendered without cognition occur (Lazarus, 1991), which presented as a base for subsequent behaviours (Cacioppo and Petty, 1989). The premise about emotions do not perform as mediators relationship among environmental stimuli, consumer appraisals and behavioral responses that supported by the empirical evidence (Chebat and Michon, 2003).
Various researches have observed that the comprehensive perceptions of physical retail environment and of product quality are affect the consumer behaviour, thus, revealed the shoppers’ evaluations is independently affect both approach-avoidance behaviors as well as the actual spending (Zeithaml, 1988; Baker, Levy and Grewal, 1992; Donovan et ai.,1994). The influence of shoppers’ perceptions on behaviour still has rooms to research, as to find out the importance of perceptions in service environment. In consequence, it is supposed that:
The findings showed that there is possible to hypothesize the perceptions may follow a path than inferences on merchandise quality (Baker, Grewal and Parasuraman, 1994). Therefore, the assessment of product quality served as antecedents toward the evaluations of service setting and performing as mediator of the relationship among environmental stimuli with shoppers’ perceptions of retail environment. Hence, it is hypothesized that:
To review the olfaction research found that women tend to enjoy shopping in a scented atmosphere (Robert and Kerry, 2007). In addition, female perceive superior emotional responses with affective and evaluative reactions than the counterpart of male (Bone and Ellen, 1999). The appearance of variance is the possible result of hormonal factors, together with women’s higher sense in acuity and verbal skills. That sensitivity have enhanced by olfactory cues and thus familiarity with smells (Levine and McBurney, 1986; Richardson and Zucco, 1989; Ellen and Bone, 1998; Bone and Ellen, 1999). Hence, it is assumed that:
To analysis the effects of scent on consumer perceptions and purchasing behaviour towards retail environment, both primary data and secondary data should be collected.
To start with secondary data, the data collected for purpose other than the problem at hand (Malhotra & Birks 2007). It includes internal and external data (Malhotra & Birks 2007). Internal data is information generated in –analysis of earlier studies such as customer files, like past customer transactions (Schiffman & Kanuk 2007). Company report like The Body Shop, Starbucks and Mrs. Fields will collected as internal data. This gives the examples and past information of the new trend of scent marketing.
Apart from internal data, external data is collected by an outside organization. Federal government is the main source which publishes information collected by scores of government agencies about the economy, business and virtually all demographics of the population (Schiffman & Kanuk 2007). For this dissertation, text book is used to learn about theory development and establish research approaches, as well as methods of data collection. Besides, academic journals and articles. will also collected as external data to provide up-to-date and rigorous reports on research of the study, which gives different ideas that to be summarized with respect to the study. Moreover, the industrial reports and news of retail operation and scent marketing strategy are collected to establish the background of this research and provide useful figure and picture to describe the trend of rising attention with emotional bonding towards retail environment. Nevertheless, the census data from Hong Kong Government and experimental research company to provide accurate figure toward the retail industry.
To mention about primary data, it is originated by the researcher specifically to address the research problem (Malhotra & Birks 2007). Primary data is original and unique element of this research. It can be divided into qualitative and quantitative information.
For this dissertation, focus group is used to collect qualitative information. This provides views of consumer behaviour on ambient scent. The increased understanding provided is a key to reduce negative aspects of consumer behaviour and scent marketing which so-called ‘dark side’. Research focused on understanding consumer experiences is called interpretivism (schiffman & Kanuk 2007). However, if there is any idea uncovered, quantitative studies should be tested. Therefore, quantitative information is collected. For this study, observation research is used to determine the research sample and face-to-face questionnaire survey with representative sample from the wider population are conducted in order to measure the behaviour, emotions and purchasing decision in terms of actual spending of potential consumers in Hong Kong. Result are used for making strategic marketing decision whether to implement scent marketing in Hong Kong retail industry ( Schiffman & Kanuk 2007).
Based on the information to be collected, the research designed for the study is as the follow:
First of all, secondary data is collected from online databases, which are ABI/INFORM of City University. Moreover, text books like “Marketing”, “Service Marketing”, “Scents” and “Consumer Behavior” are used to provide basic information to study. Besides, some of the academic journals and articles are searched through we'd searching engines such as Google, etc. Finally, Hong Kong Government website provides the census data and industrial reports.
To achieve triangulation between quantitative and qualitative information, the overall research design will be as follows:
The quantitative research is conducted to quantify data and apply forms of statistical analysis (Malhotra N. & Birks D. 2007). It is descriptive in nature and used to understand the effects of various promotional inputs on the consumer, thus enabling marketers to “predict” consumer behaviour (Schiffman & Kanuk 2007). For this study, observation and face-to-face questionnaire survey will be used.
Observational research is the recording and counting of behavioural patterns of people to obtain information about the phenomenon of interest (Malhotra N. & Birks D. 2007). And also, it is an important method of consumer research because marketers recognize that the best way to gain an in-depth understanding of the relationship among people towards products and environment is by watching through the process of customers get into the store and whether purchase the merchandise or not (Schiffman & Kanuk 2007). Therefore, it is the first step of conducting marketing research as the researcher observe and record the numbers of customer who have intention to visit the shop and make actual purchase. This is used to determine the appropriate time of the face-to-face questionnaire survey to be conducted. The structure observation will be conducted as the researcher clearly defines the behaviours to be observed and the techniques by which that will be measured.
Conducting survey in familiar and non-artificial surroundings, people tend to act more naturally that allows researchers to obtain data on subjects’ actual emotions, perceptions and behaviour. Thus, this study will take place at Nuance-Watson, the leading retail operator in Hong Kong, provides wide range of products including watches and jewellery, fashion and accessories, perfumes and cosmetics, electronic equipment and clothes, etc. The result and findings are consequently more representative to the situation. Additional consideration was given into selection process to ensure that the retail store would be a neutral environment. Hence, the potential for observer bias can be reduced and the reliability of the data can also be enhanced.
Then, before doing face-to-face questionnaire survey, sampling techniques should be carried out. For the quantitative research, large and probability samples which each element of the population has a fixed probabilistic chance of being selected for the sample is used (Malhotra N. & Birks D. 2007). The data collection instruments are valid and reliable, thus the results can be viewed as representative of the universe (Schiffman & Kanuk 2007). There are four probability sampling methods that are simple random, systematic, stratified and cluster sampling (Malhotra & Birks 2007). The cluster sampling technique is adopted this time. It is because the sample size is clustered into 3 groups by geographically, New Territories, Kowloon and Hong Kong Island that with different purchasing behaviour while under a "scented" retail store.
In the study, target group was retail consumers aged 15 or above who regularly purchased in retail store in Hong Kong. The reason for this selection was that during this type of consumers are in their working period that the teenagers may get the part-time jobs and adult normally have earning their own income. Therefore they have sufficient purchasing power to buy product. The sample size of this survey is set at 100, as the resource limitation. The manpower and time give the restriction to carry out larger sample size for the research. However, it is believed to be good enough for studying the potential consumers and for suggesting the recommendations.
After setting the sample size, the face-to-face questionnaire survey of quantitative research will be conducted. Respondents are intercepted while they shopping in the retail store (Malhotra & Birks. 2007). They may be questioned there and asked about their consumption experiences. Therefore, questions with predefined possible responses and open-ended questions that has to be code numerically. Most questionnaires include attitude scales and, the questions are not disguised (Schiffman & Kanuk 2007).
Once the questionnaire was finished off, face and content validity, pilot testing of 30 respondents will be conducted to improve questionnaire by identifying and eliminating potential problems (Malhotra N. & Birks D. 2007). All aspects of the questionnaire should be tested, including question content and instructions, wording, sequence, form and layout, question difficulty. More importantly, it ensures all answer options are provided. The respondents should be similar to those who will be targeted in the actual survey in terms of background characteristics, familiarity with topic, and attitudes and behaviours of interest.
Due to triangulation, besides the quantitative research that qualitative research is needed. It is an unstructured, primarily exploratory design based on small samples and intended to provide insight and understanding (Malhotra & Birks. 2007). However, the findings tend to be somewhat subjective since it is administrated by highly trained interviewer-analysts who also analyze the findings (Schiffman & Kanuk 2007).
For this study, focus group will be carried out which is a discussion conducted by a trained moderator among a small group of participants in an unstructured and natural manner (Malhotra & Birks. 2007). It is generally made up of 8-10 members. Due to group of fewer than 8 are unlikely to generate the momentum and group dynamics necessary for a successful session. Likewise, group of more than 10 may be too crowded and may not be conducive to a cohesive and discussion (Malhotra & Birks. 2007).
Method to organize focus group
The group discussion “focused” on the subject of research interest to gain insights by creating a forum where participants feel sufficiently relaxed to reflect and portray their feelings and behavior, at their pace and using their language and logic (Malhotra & Birks. 2007). However, since sample sizes are necessarily small, findings cannot be generalized to larger populations (Schiffman & Kanuk 2007). Hence, quantitative research is needed. The type of questions should be open-ended, unstructured questions and further probing by the interviewer.
Moreover, the sample size should be small with non-probability sampling methods as the findings are generally not representative of the universe under study (Schiffman & Kanuk 2007). The non-probability sampling techniques are convenience, judgmental, quota and snowball sampling. However, convenience sampling is applied as only the shoppers who have intention to walk around or consumed in the retail store are selected.
This is Preview only. If you need the solution of this assignment, please send us email with the complete assignment title: ProfessorKamranA@gmail.com
