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THE PROOF OF THE PUDDING IS IN THE ATMOSPHERICS: THE INTERACTION EFFECT OF MUSIC AND ODOUR ON SHOPPER SPENDING Richard MICHON School of Retail Management Ryerson University, Toronto Jean-Charles CHEBAT HEC-Montréal Correspondence: Richard Michon, PhD School of Retail Management Ryerson University 350 Victoria Street Toronto, Ontario M5B 2K3 Canada Phone: 416-979-5000 Ext. 7454 Fax: 416-979-5324 Email: [email protected]

Michon Chebat 2007 EARCD

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Page 1: Michon Chebat 2007 EARCD

THE PROOF OF THE PUDDING IS IN THE ATMOSPHERICS:

THE INTERACTION EFFECT OF MUSIC AND ODOUR ON SHOPPER SPENDING

Richard MICHON

School of Retail Management Ryerson University, Toronto

Jean-Charles CHEBAT

HEC-Montréal

Correspondence:

Richard Michon, PhD School of Retail Management Ryerson University 350 Victoria Street Toronto, Ontario M5B 2K3 Canada Phone: 416-979-5000 Ext. 7454 Fax: 416-979-5324 Email: [email protected]

Page 2: Michon Chebat 2007 EARCD

THE PROOF OF THE PUDDING IS IN THE ATMOSPHERICS:

THE INTERACTION EFFECT OF MUSIC AND ODOUR ON SHOPPER SPENDING

Abstract

Most studies on the effects of retail atmospherics focus on shoppers' approach behav-

iour as a proxy for actual and future dollar spending. This research looks at the direct and

interaction effects of music and ambient scent on mall shopper spending using ANOVA. In a

regional mall environment, the authors manipulated music tempo and ambient scent atmos-

pheric cues, and measured shoppers' spending on non-grocery purchases. Consumer spending

is significantly higher when arousing music and ambient odours are congruent. Incongruent

sensorial stimuli have a strong negative impact on consumer spending. Background music

and ambient scent account for a non-negligible two percent in spending variance. Managerial

implications for mall operators are discussed.

Key words:

Atmospherics, cue congruence, shopping mall, music, odour, retail.

Page 3: Michon Chebat 2007 EARCD

THE PROOF OF THE PUDDING IS IN THE ATMOSPHERICS:

THE EFFECT OF MUSIC AND ODOUR ON SHOPPER SPENDING

Where's the Beef?

Retail researchers enjoy everything that orbits around environmental psychology (S-O-

R). They can manipulate atmospheric cues in laboratories or in the field, and observe

shoppers affective and cognitive responses, along with various manifestations of approach

avoidance behaviours. On the other hand, retailers who are hard pressed for immediate

metrics would rather go for a no nonsense expeditious S-R forms of classical conditioning.

Where's the beef are they likely to ask. Customers vote with their wallets, and simple enough,

retailers want their share of wallet. Can retail atmospherics such as music and ambient odour

directly positively influence the cash register?

This paper studies in situ the unmediated and non moderated effects of mall atmos-

pherics (ambient scent and music) on mall shopper spending. Its contribution is unique in

many ways. Atmospheric cue manipulations do not take place in a laboratory setting but in an

actual shopping mall. The authors manipulate two variables at once and examine interplays.

Retail Atmospherics

Over thirty years of academic research clearly demonstrate the influence of the retail

environment on consumer perceptions and behaviour. In a review of some 60 experiments

that manipulated portions of a store’s complex atmosphere, Turley and Milliman (2000) ob-

serve that each of these studies uncovered some statistically significant relationship between

atmospherics and shopping behaviour.

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The retail environment has an impact on an array of consumer emotions and attitudes,

among which the effect of crowding on shopper satisfaction, the mediating effect of the envi-

ronment on the affective reactions of department store shoppers, the influence of color on

furniture store displays, and the impact of the general environment on store image of a card.

Turley and Milliman’s review also highlights a range of shopping behaviours that re-

tailers can influence, and the diversity of retail formats in which these studies have taken

place. Consumer responses induced by changes in atmospheric variables include increased

sales due to effective exterior store windows, the effect of lighting on the number of items

handled by shoppers, store layout on price perceptions, merchandise arrangement on purchase

intentions in a wine store, and even the impact of music on sales.

And what about the Mall?

The shopping mall is part of the retail theatrical stage. As coined by Underhill (2004,

p. 19), the shopping mall is a store of stores. Stores are nested in malls just as departments are

embedded in stores. Shopping center-inclined sales (stores likely to be found in shopping

centers) represent 75 percent of all non-automotive retail sales (ICSC, 2006). Yet, shopping

mall environmental research remains the poor cousin of retail atmospherics.

There is relatively little research on how consumers perceive, experience, or respond

to the mall’s environment. Some studies have noted that the physical facility can have an

impact on the shopping center’s image (Chebat, Sirgy and St-James, 2006; Finn and Louviere,

1996). While in malls, consumers undertake activities unrelated to the acquisition of goods

and services and which can only be described as experiential consumption (Bloch, Ridgway

and Dawson, 1994). Wakefield and Baker (1998) observed that the physical environment of

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the mall generates an emotional response in shoppers and can positively influence both the

excitement consumers feel and their desire to stay in a mall They suggest that all environ-

mental factors, with the exception of the ambient lighting and temperature, are positively as-

sociated to excitement or desire to stay at the mall, or to both.

Music

Music is one of the very first atmospheric elements that attracted researchers’ interest

and has been shown to impact consumer behaviours (Milliman, 1982). The environmental

psychology model (Mehrabian and Russell, 1974; Donovan and Rossiter, 1982) hypothesizes

that music affect approach-avoidance behaviours through emotional response (Yalch and

Spangenberg, 1990; Dubé, Chebat, and Morin, 1995). Other studies suggest that music stimu-

lates cognitive processes through arousal, cue congruence, memories, familiarity and meaning

(Kellaris, Cox and Cox, 1993; Chebat, Gélinas-Chebat, and Vaillant, 2001, Zhui and Meyers-

Levy, 2005).

Pleasant music, by contrast to unpleasant music, is associated with longer consumption

time (Holbrook and Anand, 1990), longer time perception (Kellaris and Kent, 1992), less

negative emotional reaction to waiting with more positive service evaluation (Hui, Dubé and

Chebat, 1997), and more desire to affiliate with the service provider (Dubé, Chebat, and

Morin, 1995). Sweeney and Wyber (2002) conclude that slow popular or fast classical music

both influence pleasure and the perception of service quality among fashion shoppers. Baker,

Parasuraman, Grewal, and Voss (2002) found that music reduced shoppers’ perceptions of

monetary and psychic costs.

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Music styles and tempos influence sales in supermarkets (Herrington and Capella,

1996; Milliman, 1982), sales in wine shops (Areni and Kim, 1993; North, Hargreaves and

McKendrick, 1999), sales in a restaurant (Milliman, 1986), and impulse purchasing in de-

partment stores (Yalch and Spangenberg, 1990) and in malls (Morrin and Chebat, 2005). In

addition to increased retail sales, music mediates emotional responses to waiting in banks

(Hui, Dubé and Chebat, 1997), store evaluation (Dubé and Morin, 2001), and in-store selling

(Chebat, Gélinas-Chebat, and Vaillant, 2001).

Ambient Odours

Most studies on ambient scent in a retail setting have been performed in a simulated

environment (Morrin and Ratneshwar, 2000; Fiore, Yah and Yoh, 2000; Spangenberg et al,

1996 and 2005; Mitchell, Kahn and Knasko, 1995). Some were actually carried out in a retail

environment (Chebat and Michon, 2003; Hirsch 1995; Knasko, 1989). As a whole, these

studies indicate that odour can impact consumers’ shopping behaviour, even if some of the

findings have been considered mixed or inconsistent (Fiore, Yah and Yoh, 2000). For exam-

ple, Spangenberg, Crowley and Henderson (1996) show that product type mediates the effect

of odour on purchase intentions. Morrin and Ratneshwar (2000) also illustrate that ambient

scents improve evaluations of products that are unfamiliar or not well liked. Ambient odours

stimulate cognitive reactions (Spangenberg, Crowley, and Henderson, 1996; Chebat, Michon,

2003) and affect non impulsive shoppers (Morrin and Chebat, 2005).

Interplay and Congruence of Atmospheric Cues

Atmospheric variables can interact with each other, producing expected and unex-

pected results. Fiore, Yah and Yoh (2000) report that the effect of ambient scents may be

mediated by other atmospheric elements. They found that adding a pleasant fragrance to a

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product display resulted in highest levels of attitude toward the product, purchase intentions,

and willingness to pay higher prices. Michon, Chebat and Turley (2005) observed a negative

interaction between pleasing ambient fragrances, mall density, and the perception of the mall

environment. Babin, Hardesty and Suter (2003) discovered that for fashion-oriented stores

blue interiors were better perceived than orange interiors. However, under soft light condi-

tions, the negative effects of orange were neutralized.

Studies suggest that, to be effective, odours should be consistent with whatever prod-

uct is presently under evaluation by the consumer (Fiore, Yah and Yoh, 2000; Mitchell, Kahn

and Knasko, 1995). However, the ability to match specific scents with products is much eas-

ier for single line or limited line specialty stores than it is in other retailing contexts such as

department stores, discount stores or malls where product selections are broader and deeper

and therefore less related.

The question raised by the limited number of existing studies is the following: to what

extent the various cues should match? Mattila and Wirtz (2001) studied the interactive effects

of music and scents in a retail setting. They manipulated the level of arousal of these two cues

and found that increased positive affect (pleasure and satisfaction) is experienced when shop-

pers are exposed to a match of highly arousing scent combined with highly arousing music, or

to a low arousal scent combined with low arousal music than they do to either “mismatch”

combination. The “mismatch” contributes to perceptual inappropriateness causing systematic

changes in customer comfort level. It may be reasoned that mismatch combinations make the

cues categorization cognitively uneasy and, consequently, bring about negative affect (Cohen

and Basu 1987).

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Another theory, the incongruity theory proposes opposite tenets: when faced with

stimuli that are mildly incongruent with prior expectations, individuals will engage in more

elaborative information processing. The very process of responding to (in)congruity may

itself produce some affect or arousal that might contribute to individuals’ evaluations

(Meyers-Levy and Tybout, 1989). Consequently, individuals respond more affectively to

moderate incongruity than they do to extreme incongruity.

In an empirical study reporting the effects of appropriate/inappropriate combinations

of scents, décor and music in a shopping mall, Babin, Chebat and Michon (2004) found that

higher appropriateness is associated with higher product quality ratings. When mall character-

istics are perceived to be appropriate, respondents tend to rate products sold there as higher in

quality. Likewise, higher appropriateness is associated with more positive reported affect and

increased hedonic shopping value.

Most papers about atmospheric interplay and congruence are directed at shoppers' af-

fect and cognitive responses. In this research, the authors tested the interaction effects of am-

bient scent and background music directly on shopper spending dropping on purpose other

moderating or mediating variables.

H1: Congruent atmospheric cues (either fast music tempo and arousing ambient

scent, or slow music tempo and non-arousing ambient scent) are likely to elicit

higher dollar spending than incongruent retail stimuli.

Page 9: Michon Chebat 2007 EARCD

Research Framework and Methodology

The experiment was conducted in a shopping mall located in the Montreal area. Data

were collected in four consecutive weekly waves during the months of February and March.

These periods are known by the shopping mall operators to be similar in terms of sales vol-

ume and shopper traffic. Special care was taken by the mall director to cancel all special

promotions by the retailers during that period.

Four conditions were tested in a 2 (fast or slow music tempo) by 2 (with or without

arousing ambient scent) factorial plan. The background music is usually kept at a fast tempo.

The latter is fixed by the music provider (Muzak) at 96 bpm. In the test condition, the music

provider set the tempo at 60 bpm. In both cases, the musical genre remained “light rock”, in-

cluded in the category called “familiar adults contemporary favorites”. The volume was set at

the same levels in both music conditions.

The shopping mall ambient olfactory atmosphere is not normally manipulated. In this

condition, there are no aggressive exogenous odours emanating from, say, food outlets or fra-

grance stores. For the ambient odour manipulation, a citrus scent (a combination of orange,

lemon and grapefruit) was selected. Citrus was specifically chosen for its arousing properties

(Spangenberg, Crowley, and Henderson, 1996), and was also available from vendors. Fur-

thermore, the scent was not associated with any specific product sold in the shopping center,

as recommended by Spangenberg, Crowley and Henderson (1996). In the test waves, a light

pleasing scent was vaporized in the mall’s main corridor. The ambient scent was diffused in

the shopping mall’s main corridor located between two major retailers. Some ten diffusers

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released a citrus scent for three seconds every six minutes, thus maintaining continuous scent

intensity.

Graduate marketing students, who were asked not to wear perfume, were responsible

for the administration of questionnaires. Sampled individuals were not aware of the research

objectives. They were simply invited to fill-in a self-administered questionnaire on the con-

clusion of their shopping trip. Data collection covered all weekdays and day parts for ade-

quate representation. The control group (fast tempo music and no ambient scent treatment)

was made up of 447 subjects. Some 145 were exposed to fast tempo music and a citrus ambi-

ent odour. Another 144 individuals were subjected to slow tempo music with no special am-

bient odour. Finally, 255 participants were exposed to slow tempo music and the citrus ambi-

ent scent.

Demographic profiles within each factor were compared. Female participants were

unevenly distributed across the four experimental cells, χ2(3) = 16.06, pr = .001, ranging from

55 percent in the fast music tempo/control odour to 70 percent in the slow music

tempo/control odour (Table 1). Other socio-demographic features appear to be better bal-

anced. The median age varied from 39 years in the slow tempo music/control odour to 43

years in the fast tempo music/citrus odour, χ2(3) = 6.59, pr = .086. The majority of partici-

pants was married, χ2(3) = 4.99, pr = .172), and had a post-secondary formal education, χ2(3)

= 5.22, pr = .157). Median income fluctuated from 38,000 dollars in the slow music

tempo/control odour to 47,800 in the slow music tempo/citrus odour, χ2(3) = 6.94, pr. = .074).

There were no concentrations of young or old participants with different olfactory or auditory

sensitivities.

Page 11: Michon Chebat 2007 EARCD

Table 1: Cohort Demographic Profile

Group 1 Slow music

alone

Group 2 Fast music

alone

Group 3 Slow music

& Citrus

Group 4 Fast music & Citrus

Total χ2/Pr (df = 3)

Females 70% 55% 67% 63% 62% 16.06/.001Median age 39 yrs 42 yrs 40 yrs 43 yrs 41yrs 6.59/.086Married 51% 57% 60% 50% 56% 4.99/.172Education Post-secondary 5.22/.157Med. Income 38.3 43.8 47.8 40.8 43.3 6.94/.074Cohort (n) 144 447 255 145 991

The 2 by 2 factorial plan was submitted to a two-way ANOVA where the dependent

variable was the amount of non-food dollars spent at the end of the shopping trip under music

and ambient odour manipulations. All other possible mediating or moderating variables were

purposely left out of the model to get our point across to “hard-nosed” retailers.

Research Findings

Research findings are posted in Table 2. The overall ANOVA model is significant,

F(3,902) = 6.936, pr. = .023. The direct effect of ambient odour is marginally significant,

F(1, 902) = 3.159, pr. = .076, under a 90 percent confidence interval. Music tempo has no

direct effect of shopper spending, F(1,902) = 2.545, pr = .111. The interaction effects be-

tween music tempo and ambient scent is significant, F(1,902) = 14.428, pr = .000. The model

explains two percent of shoppers' spending variance. Figure 1 underscores the direction of the

interplay: slow tempo music and ambient citrus scent do not mix.

Page 12: Michon Chebat 2007 EARCD

Table 2: Tests of Between-Subjects Effects

Dependent Variable: Spending Source Type III Sum of

Squares df Mean Square F Sig.

Corrected Model 95278.301(a) 3 31759.434 6.936 .000Intercept 1761966.745 1 1761966.745 384.818 .000Ambient odour 14462.440 1 14462.440 3.159 .076Music tempo 11650.814 1 11650.814 2.545 .111Odour * Music 66060.442 1 66060.442 14.428 .000Error 4129993.579 902 4578.707 Total 6186525.349 906 Corrected Total 4225271.880 905 (a) R Squared = .023 (Adjusted R Squared = .019)

Figure 1: Average Spending and Interaction effects

0 $

10 $

20 $

30 $

40 $

50 $

60 $

70 $

Fast tempo Slow tempo

Music

Spen

ding Control

Odor

Discussion

Marginal means, along with 95 percent confidence intervals, are outlined in Table 3.

Average shopper spending is higher when ambient scent and fast tempo music conditions are

combined ($ 57.93 +/- 11.47) or when slow tempo music is played with no ambient odour ($

58.84 +/- 11.54). When an arousing scent is added to a slow tempo music condition, average

spending drops dramatically to $ 31.04 (+/- 8.60).

Page 13: Michon Chebat 2007 EARCD

The combination effect of environmental cues is referred to in the literature as cue

congruence, fitness or appropriateness (e.g. Baker, 1998; Gulas and Bloch, 1995; MacInnis

and Park, 1991; Mitchell, Kahn, and Knasko, 1995; Spangenberg, Crowley, and Henderson,

1996). Maximum retail effectiveness would be achieved when all environmental cues—

ambient, design, and social—are congruent with the retailer’s overall image (Baker, 1998).

Furthermore, atmospheric cues interact with each other to produce unexpected effects. Kahn

(1998) reports, for example, that an over stimulated (e.g. too many cues) environment may

force consumers to simplify their purchase behaviour and choose less variety. Coherent

executional cues are less likely to compete for processing resources (MacInnis and Jaworski

1989). Highly incongruent cues may result in consumers' confusion.

Cue congruence stimulates cognitive processing through memories, familiarity and

meaning (Chebat, Gélinas-Chebat, and Vaillant, 2001; Kellaris, Cox and Cox, 1993; MacIn-

nes and Park, 1991; Mattila and Wirtz, 2001; Spangenberg, Grohmann, and Sprott, 2005).

Table 3: Grand and Marginal means

Dependent Variable: Dollar Spending Grand

Mean Std.

Error 95% Confidence Interval

Lower Bound Upper Bound $ 48.92 2.49 $ 44.02 $ 53.81

Music Odour Marginal Means

Std. Error

95% Confidence Interval

Lower Bound Upper Bound Fast tempo (Ctrl) None (Ctrl) $ 47.85 3.38 $ 41.23 $ 54.48 Citrus $ 57.93 5.85 $ 46.46 $ 69.41Slow tempo None (Ctrl) $ 58.84 5.89 $ 47.28 $ 70.40 Citrus $ 31.04 4.39 $ 22.43 $ 39.64

Page 14: Michon Chebat 2007 EARCD

Implications and Further Research

In the literature, cue congruence, fitness or appropriateness refers to the combination

effect of environmental variables. Optimal retail effectiveness is achieved when all environ-

mental cues—ambient, design, and social—are congruent with the retailer’s overall image

(Baker, 1998). However, atmospheric cues do not always interact with each other as antici-

pated. Managers would be well advised not to improvise when combining atmospheric cues

together. The interaction of music tempo and ambient scent explains two percent of the vari-

ance in shopper spending. Considering cost involved, a two percent lift in consumer spending

is certainly not negligible.

Even though the interaction effect of music and scent does not explain much of shop-

pers’ spending variance, it is nonetheless significant. Statisticians are not at ease with low r-

squares. Yet, the latter are rather common in econometric models. If the combined effect of

music and odour on shopper spending were any higher, findings would be dubious. How

could such simple retail atmospheric cues been ignored for such a long time? On the other

hand, a more modest impact of one or two percent on retail sales makes more sense and can

have spectacular effects on major league players such as Wal-Mart or Carrefour.

Retailers should carefully select ambient odours, and music styles and tempos from

their marketing toolbox. These variables are among the least expensive techniques to enhance

shoppers’ emotions, perceptions, and behaviour. Congruent scent and background music may

be effective to increase the sales of a particular product (Bone and Jantrania, 1992), but may

also jeopardize the sales of other products (Spangenberg, Crowley, and Henderson, 1996).

Page 15: Michon Chebat 2007 EARCD

Effective ambient scent should support all products in the store (Gulas and Bloch, 1995). Cue

congruency may include many dimensions worth investigating. In this paper, the congruency

between background music and ambient odours was limited to the arousing effects. Highly

arousing atmospheric variables are likely to impact cognition rather than emotions.

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