Unleashing the Effect of Store Atmospherics on Hedonic Experience and Store Loyalty

Positive experiences enhance the value of products or services offerings and more importantly could be utilized as a differentiation strategy in a highly competitive retail business. The growing body of knowledge in this research stream posits that creating pleasant experiences to customers while they are actively engaging with the products or services at every touch points in the retail setting, retailers can exploit these happy customers to feel emotionally attached and bonded with the retail store. If retailer attempt to create exceptionally enjoyable shopping experience, undoubtedly it is imperative to identify the predictors of shoppers’ experience. In respond to this notion, hence the main objective of this research is to assess the effect of store atmospherics on shoppers’ hedonic experience and in turn store loyalty. A framework was developed and tested in the context of a very popular chain bookstore in Malaysia, that is MPH. Shoppers’ hedonic experience is hypothesized to be influenced by three elements of store atmosphere, namely store design, ambient and social factors. Subsequently, it was hypothesized that hedonic experience has positive effect on store loyalty. The research findings unveil that there was no evidence to support the hypothesized links between ambient factors with shoppers’ hedonic experience. Interestingly, however it was discovered that store design and social factors have significant influence on the shoppers’ hedonic experience. In addition, it was found that shoppers’ hedonic experience has positive influence on store loyalty. Therefore, the research findings reaffirms that retailers should pay attention to consumers’ in-store emotional state as the emotions of consumers are determining factors in formation of experience quality. Implications of the research findings to the body of knowledge and retail management practices were discussed.