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Shopping Centre Marketing: Management Approach to Atmospherics and Experiential Marketing

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Shopping Centre Marketing: Management Approach to Atmospherics and Experiential Marketing Shopping Centre Marketing: Management approach to atmospherics and experiential marketing Abstract: Beyond the satisfaction of basic shopping needs, researchers point out that the shopping centre is also a destination for consumers to have a good time in. This has been described as a holistic customer experience. One of the factors influencing customer shopping experiences is the retail environment. Here, atmospherics is the practice of consciously designing the retail space in order to produce certain effects in customers. While most research on atmospherics has tended to focus on individual stores, this study looks instead at atmospherics from the broader retail view of the shopping centre. A managerial perspective is also adopted in the study. Specifically, the purpose of this thesis is to investigate how shopping centre management in Sweden relate to and approach atmospherics, in the context of creating customer shopping experiences. To fulfil this purpose, a qualitative research study was designed, and interviews were conducted with nine shopping centre managers. These are complemented by an interview with a shopping centre owner; and together, form the ten case studies in this thesis. The main conclusion of this thesis is that shopping centre managements’ approach to atmospherics in their shopping centres is influenced by how they relate to the concept. Further, within the framework of experiential marketing, the managements’ understanding of customer experiences also contributes to affect and be affected by how they relate to and approach the concept of atmospherics. Moreover, this affective process is dynamic, in that learning from past approaches to atmospherics contributes to influence how the management relates to atmospherics, and how they understand customer experiences in turn. Keywords: Experiential marketing, Atmospherics, Managerial perspective, Shopping centre, Sweden Stockholm School of Economics Master Thesis in Business & Economics (Marketing & Media Management) 30 ECTS Author: Genevieve Siew Advisor: Per Andersson Discussant: Riikka Murto Examiner: Bertil Thorngren Presentation: Stockholm, 10 June 2011 Shopping Centre Marketing: Management approach to atmospherics and experiential marketing Acknowledgements Embarking on this thesis opened up the fascinating realms of retailing, retail marketing and atmospherics to me, and undertaking the research study allowed me to delve into it. While not always easy, the journey has undeniably been a fulfilling one. I would like to offer my sincere gratitude to all those who have contributed in one way or another during the process of this research study; without whom this thesis would not have been possible. Specifically, I would like to thank the following: o Per Andersson – my advisor, for his guidance and infinite patience; his eager enthusiasm at all my ideas; and who was ever generous with suggestions for improvement and nuggets of wisdom throughout the whole research and writing process. o Christopher Rosenqvist, Henrik Sjödin and Susanne Sweet – the individuals of academia at the Stockholm School of Economics who provided me inspiration to refine my ideas when it all looked so fuzzy at the start. o Kristina Cedrins, Thomas Eulau, Niklas Gustafsson, Andreas Hedlund, Lisa Henning, Fredrik Kolterjahn, Fredrik Lange, Anna Nyberg, Moon-Suck Song, Henrik Storm, Magnus Söderlund and Agneta Uhrstedt – who gave of their time during the balmy Swedish summer months to offer me invaluable insights on the retailing industry in Sweden, for my pre-study. Also, I would like to extend a special note of appreciation to Ms Uhrstedt, for generously giving me access to her library at the Nordic Council of Shopping Centres; in my pursuit of more information about the Scandinavian and Swedish shopping centre industries. o Marcus Holst and Hans Tjernström – who kindly opened doors for me to obtain access to several interviewees in my research study. o Margareta Almbring, Peder Berentsen, Linda Esthental, Anna Falk, Carl Isaksson, Charles Larsson, Fredrik Oddshammar, Anders Pettersson, Anna Timander and Jörgen Törnqvist – the managers who agreed to share tales of their shopping centres with me, welcomed me to their centres and responded to my questions so candidly. o Finally, to Anders Storm – a dear friend who graciously offered assistance in checking my Swedish-English translations, and in proofreading my thesis. Shopping Centre Marketing: Management approach to atmospherics and experiential marketing CONTENTS 1. INTRODUCTION ................................................................................................................................................. 1 1.1 BACKGROUND ............................................................................................................................................... 1 1.2 PROBLEM DISCUSSION ..................................................................................................................................... 2 1.3 PURPOSE ..................................................................................................................................................... 4 1.4 DELIMITATIONS ............................................................................................................................................. 4 1.5 DEFINITIONS ................................................................................................................................................. 5 1.6 DISPOSITION ................................................................................................................................................. 5 2. PRE-STUDY ........................................................................................................................................................ 6 2.1 MOTIVATION FOR A PRE-STUDY ......................................................................................................................... 6 2.2 PRE-STUDY DESIGN, METHOD AND PROCESS ........................................................................................................ 7 2.3 PRE-STUDY FINDINGS ...................................................................................................................................... 9 2.3.1 Need for new shopping centre marketing strategies in Sweden ..................................................... 9 2.3.2 Experiential marketing in retail marketing strategy .................................................................... 10 2.3.3 Customer experiences through design and atmospherics ............................................................ 11 2.4 SUMMARY OF THE PRE-STUDY ......................................................................................................................... 12 3. THEORETICAL FRAMEWORK ............................................................................................................................ 13 PART I: EXPERIENTIAL MARKETING AND CUSTOMER EXPERIENCES .................................................................................. 13 3.1 EXPERIENTIAL MARKETING ............................................................................................................................. 13 3.2 CHARACTERISTICS OF CUSTOMER EXPERIENCES .................................................................................................... 14 3.2.1 Customer experiences occur through interaction......................................................................... 14 3.2.2 Customer experiences are personal occurrences ......................................................................... 15 3.2.3 Customer experiences encompass multiple dimensions ............................................................... 16 3.2.4 The customer experience is a process.......................................................................................... 17 3.2.5 Customer experiences are both utilitarian and hedonic ............................................................... 18 3.2.6 Customer experiences are holistic constructs .............................................................................. 19 3.3 FACTORS INFLUENCING CUSTOMER SHOPPING EXPERIENCES ................................................................................... 19 PART II: RETAIL ATMOSPHERE AND ATMOSPHERICS .................................................................................................... 22 3.4 THE BROAD SPECTRUM OF ATMOSPHERIC VARIABLES ............................................................................................. 23 3.5 THE MECHANICS OF ATMOSPHERICS .................................................................................................................. 24 3.6 RESEARCH ON ATMOSPHERICS ......................................................................................................................... 25 3.6.1 Atmosphere and customers’ choice of retailer............................................................................. 25 3.6.2 Atmospheric variables and their effect on customer emotions ..................................................... 26 3.6.3 Atmospheric effects on customer emotions and other outcomes ................................................. 26 3.7 APPLICATION OF ATMOSPHERICS ...................................................................................................................... 28 3.7.1 Two complementary approaches to atmospherics .....................................................................
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