An investigation of the effect of store design on consumer purchasing behavior in retail stores CONTENTS Executive summary. 3 1. Introduction.. 4 2.

Bibliography review. 6 2.1 Defining the concepts 6 2.2 The Mehrabian-Russell Model (M-R Model) 9 2.3 Indicative studies that are based on theoretical models 10 2.4 The influence of the atmospherics of the shop. 15 2.5 The influence of specific atmospheric elements of the shop.. 24 2.5.1 Music..25 2.5.2 Scents.29 2.5.3 Lighting.33 2.5.4 The architecture of the space..34 2.6 The influence of colour.37 2.6.1 The influence of colour on the human body.41 2.6.2 The influence of colour on the human psychology..42 2.6.3 The influence of the colour of the packaging..44 2.6.4 The influence of colour in the shop.48 3. Research Methodology52 3.1 The aim of the research.52 3.2 Statement of research hypotheses.53 3.3 Specimen collection..54 3.4 Data collection55 3.5 Designing the survey.55 4. Research results and analysis57 4.1 The cosmetics market..57 4.2 The influence of colour in the shop59 4.3 The influence of the colour of the packaging.65 5. Conclusions Suggestions.72 5.1 Conclusions..72 5.2 Practical implications of marketing.73 5.2.1 Implication for the retailer.73 5.2.2 Implications for the product manager.........75 5.3 Limitations Suggestions for future research76 Bibliography.78 Attachments.90

EXECUTIVE SUMMARY The present dissertation refers to the influence that the shop environment has on the purchasing behavior of the consumer. The theoretical background on which this research is based on consists of experiential research, laboratory experiments and field research, that has been published in international scientific journals. The purpose of this research focuses on the influence of colour on the emotional and behavioural responses of the consumer within the store. Research was carried out in the cosmetics domain, whereas the population specimen was limited to female consumers. Surveys accompanied by visuals were used for the selection of data. The results of the research lead us to the conclusion that different colours do have a profound influence on the emotional state of the consumers in the shop and this, in turn, influences the time that they spend in it, and their desire to approach and examine the products and it also affects their intention to make purchases. Furthermore, this same research proves that the colour of the packaging of the products influences their image as it is perceived by the consumer. The results of this research can be applied in both retail and wholesale marketing, since they are a useful tool that assists the manager in building the image of the product or his shop and thus allows him to achieve an increase in sales and acquire a larger portion of the market.

1. INRODUCTION Contemporary retail shops have proven to be an ideal domain for the application of the science of marketing, due to the immediacy to the final purchaser. Nowadays, retail shops are playing a more and more important role in the purchasing behaviour of the consumer not only in the distribution but in the general placement and promotion of the different brand names. As a result, a large percentage of the sales of goods is due to marketing policies that are implemented in the shops that have been designed by the manufacturers or the retailers themselves. Within the framework of retail marketing, a highly interesting domain is that of atmospherics (the lighting, the colours, the architecture of the space, temperature, backround music, scents) affect the purchasing behaviour in the shop. According to research that has been published, these elements may have a positive or negative effect on the attraction of customers and the realization of purchases from the specific shop. So it is becoming more and more common to see managers resorting to atmospherics as a means of increasing their customers. This dissertation focuses on colours as a significant element of the atmosphere of cosmetics shops and investigates its influence on consumer behaviour. The findings of this research provide us with useful information regarding the colour preferences of consumers in cosmetics shops, defining the emotions and responses that different colour product displays

have on customers. The desire of the consumers to approach specific areas of a shop, the time spent in these, and their purchasing intentions are some of the variables that are examined in the framework of this research. An extension of this research regards the colour of the packaging of the product and the way it influences the image as it is perceived by the consumers. The goal of this research is to reach conclusions which will compel industrial companies as well as merchants to pay attention to the positioning of their products and their shops. The retailer, on his part, by studying the characteristics of his target market and the type of products, can create the appropriate atmosphere in his shop, projecting to his consumers a specific retail image, while the manufacturer may choose to make his products available through those retail shops, where the atmosphere and the clientele match the image of the product. Regarding the layout of this dissertation, it consists of five chapters. Initially, a recapitulation of relative articles which have been published in scientific journals is considered to be useful. Then, the methodology which was used for the creation and carrying out the research follows. Furthermore, there is an analytical presentation of the findings. Finally, there is a summary of the findings of the research and a statement of their implications on marketing of manufacturing and retail companies.

2. BIBLIOGRAPHY REVIEW In international bibliography we can encounter an abundance of research articles concerning the effect of atmospherics on the purchasing behaviour of the consumer. A significant part of this research deals with the general influence that the atmosphere has on customer behaviour. In fact, some researchers have made an effort to examine to what extent the environmental psychology model of Mehrabian - Russell (1974) can be implemented on the microenvironment of a retail shop. On the other hand, other researchers focus on specific aspects of the shop atmosphere, like colour, music, lighting and scents. Following, there is an inclusive recapitulation of studies that have been published in international scientific journals. First though the concepts used must be defined.

2.1 DEFINING THE CONCEPTS The concept of atmospherics was first mentioned by Kotler (1973), who defines the atmosphere of the shop as the deliberate designing of the areas of the shop so as to create certain influences on the buyers.

Especially for the customer service, Biner (1992) suggests the use of the term service scape, which is used to describe the style and the appearance of the area where the interaction of the staff with the clients takes place. The atmosphere is a property of the surrounding area and it is perceived from people through the visual, aural, olfactory and tactile senses. So Kotler (1973-1974) created the following dimensions of shop atmospherics: Visual dimension: colour, lighting/brightness, size, shape Aural dimension: volume, tone Olfactory dimension: scent, freshness Tactile dimension: softness, smoothness, temperature

The atmosphere of a retail shop is part of the total product or service that the customer purchases. More specifically, the suitable designing of the shop atmosphere is considered to be a useful tool that can be used against the competition, especially when the competition is fierce and increasing, the differences in the marketing mix (line of offered products, price and promotional actions) are marginal and the introduction of goods to the market are targeted at different segments of the population, from different social classes and different lifestyles. The different elements which compose the shop atmosphere can influence the purchasing behaviour of the consumer in different ways. Thus the atmosphere can sometimes operate as a mean of attracting the customers attention and at other times it can be used to get across messages concerning the image of the shop and it can also create certain emotionally moving situations. In other words, the atmosphere plays the role of a special occasional factor (Belk, 1975), which contributes to the transformation of buying intention into expressed purchasing behaviour. The role of the shop atmosphere acquires great significance in the framework of marketing services (Hoffman et al., 2002). The characteristics of servicescape influence the decision making process of the buyers, such as repurchasing, consumption and assessment of the services after the purchase. The atmospherics of a shop in customer services are an indicator of the high quality of the offered services, minimizing the danger that is associated with the specific market. Furthermore they facilitate the interaction and transactions between the staff and the customers and they contribute to the provision of homogenized services, with the goal of customer satisfaction. Generally, the term atmospherics refers to all the normal and non-normal characteristics of the interior of a shop which can be altered by the retailer, with the ultimate goal to manipulate the purchasing behaviour of the consumer in such a way, so as to accommodate his best interest (Eroglu & Machleit, 1989). Some of those characteristics are the colour, the music, the scents, the lighting, the staff, the architecture of the space and the interior design.

Chart 2.1-1 Total presentation of shop atmospheric elements External Environment External signs Entrances Shop windows Size of the building Colour of the building Neighbouring shops Shop location Architectural style Characteristics of the surrounding area External walls General Interior Floors and carpeting Colours Lighting Music Scents Walls and wall paper Ceilings Merchandise Temperature Layout of Interior Design and allocation of given space Positioning of products Grouping of products Additions and shelves Installation of equipment Positioning of cash registers Waiting areas Layout of departments Circulation flow and queues Furnishings

Interior Decorating Displays (POP material) Signs and symbols Wall decoration Works of Art

The human factor Characteristics and appearance of staff Large crowds Characteristics of customers

Source: Turley & Milliman (2000), p.194

2.2 THE MEHRABIAN-RUSSELL MODEL (M-R Model) The Mehrabian Russel environmental psychology model (Figure 2.2-1) is based on the Stimulus-Organism-Response paradigm which shows how an environmental stimulus can cause the response of an organism. According to M-R Model, the behaviour of a person in an environment can be expressed either with approach or avoidance. The approach behaviour is expressed by the desire of a person to approach, to prolong his stay, to wander, to explore, to interact or to return to this particular place in the future. On the contrary, the avoidance behaviour is expressed with reduced performance, feelings of stress and boredom, lack of friendliness and desire to distance ones self from such an environment. These behaviours are results of the emotional situations that a person experiences in a particular environment. According to the M-R Model, all the emotional situations can be expressed as a combination of two basic dimensions- pleasure and arousal- without the third dimension, that of dominance being necessary as Russell and Pratt (1980) supported later on.

The concept of pleasure refers to the degree that a person is possessed by positive emotions in a given environment, such as happiness, contentment and satisfaction. The concept of arousal is associated with the excitement, awareness and encouragement for action that is provoked by the conditions around him. Satisfaction and arousal interact in such a way that supports the approach behaviour in a pleasant environment and the avoidance behaviour when the environment is unpleasant. Each emotional state of the person is provoked by the different environmental stimuli that he is exposed to in a particular environment. Due to the deluge of stimuli and the difficulty in organizing them in an orderly way, Mahrabian and Russell used the term information load. In order to describe the degree of being new, the term novelty was used and finally the term complexity refers to how complicated the environment is. The concept of novelty involves the unexpected, the new, the amazing, and the unfamiliar. On the other hand, a complex environment is characterized by a large number of characteristics, as well as a high degree of mobility and change. The information load of an environment is positively associated with the degree of arousal that it provokes. However the response of each person to the stimuli of the environment depends on the unique way in which the particular person responds to the perception of external stimuli. Thus, people who have the tendency to filter the stimuli that they receive and to choose the most significant ones are not easily distracted by an original and/or complex environment. Figure 2.2-1 The original Mehrabian Russell Model Environmental stimulus Emotional states Pleasure - arousal (O)

Behaviour: Approach or avoidance (R)

(S) Source: Tai and Fung (1997), p. 315

2.3 INDICATIVE RESEARCH THAT IS BASED ON THEORETICAL MODELS Donovan & Rossiter (1982) wanted to prove that the theoretical M-R model can constitute a useful tool for the study of consumer behaviour in the retail shop. The goal of their their research was to define the degree at which the consumers responses in a shop can be predicted from the emotions that are provoked in the particular environment.

The selection of data was made using a survey: the participants were called upon to define their emotional situation while they were in a central area of the shop and to express their intentions regarding their behaviour in the shop. The results of the survey confirmed that the various emotions that the consumers experience in a shop can be narrowed down to two basic concepts of pleasure and dissatisfaction and on arousal-containment. These emotional states affect the intention for expression of behaviours approaching, or avoiding, which are expressed in a shop with the time that the customer devotes to browsing in the shop, the tendency to spend more money than he had originally planned to spend, his willingness to talk to the staff, the pleasure that he derives from the realization of his purchases and the possibility of visiting the premises again in the future. In particular, the survey showed that a pleasant environment in a shop created in the consumer the need to spend more money, whereas emotions of excitement and awareness increase his desire to remain longer in the shop and to come in contact with the sales staff. However, the challenge of emotional arousal has positive effects only when the right conditions exist which create pleasant feelings in the consumer. Donovan, Rossiter, Marcoolyn and Nesdale (1994), extending the above study, attempted to examine the formation of the customers emotional situation during their visit to the shop and to record the influence on their actual purchasing behaviour. In fact, the findings of the study supported the conclusions of Donovan & Rossiter (1982), stressing that the emotions of the customers of a shop dont only effect their intentions or attitudes but also their purchasing behaviour. Furthermore, they reached the conclusion that the emotional factor affects the disposal of more time and money for making purchases, independently of the cognitive factor (awareness of quality, price, line of product). It was also proven that the degree of psychological arousal is negatively associated with the mood that the atmosphere of the shop creates, when the environment is already considered to be unpleasant (eg. hospital) to the point where emotional intensity leads to avoidance behaviors. This is the same conclusion that Wirtz, Mattila and Tan (2000) reached as they introduced a new variable, the level-target of psychological arousal called target-arousal level, to interpret the interrelationship between pleasure and emotional intensity to the degree of satisfaction of a customer service shop. In their study they supported that the desired intensity level that customers demand depends on the specific service that is offered. Thus, the ideal environment for a romantic dinner is calm, whereas a theme park must be exciting. Having customer satisfaction in mind, the researchers proved that the magnifying influence of arousal on pleasure is in effect only in environments which require high levels of psychological arousal. Sherman, Mathur and Smith (1997), in another attempt to investigate the Mehrabian-Russell Model, turned to consumers, the moment they were exiting the clothes shops, asking them to assess the emotions that were caused by different variables of the atmosphere of the shop and to record their true responses. The study proved that

the human factor (number/ behaviour of staff members) and the designing of the shop are associated with the customers mood, while the atmosphere is associated with the degree of psychological arousal. More specifically, the creation of a good mood has a positive effect on the image of the shop and on spending money, while high emotional intensity has as a result to prolong the period of time spent in the shop as well as making more and more expensive purchases. Moreover, Baker, Grewal and Levy (1992) reached similar conclusions. They used the experimental method (projection of video clips in the shop interior) to examine the influence of two environmental factors: (a) atmosphere (lighting and music) and (b) the human factor (number of staff/ friendliness) on ones mood, the psychological arousal and the willingness to purchase part of the specimens that are on display. Among the findings of their study, it is worth mentioning that the good mood of the interviewees was a result of the interaction between the human factor and the elements of the atmosphere. That means that a retailer can create the appropriate conditions for a pleasant shopping experience, by emphasizing only one of the two factors and maintaining the other at lower levels. However, Babin and Darden (1995), pointed out that the retailer cannot expect the atmosphere of his shop to have the same effect on the purchasing behaviour of all his customers. In their study, they proved that the way that each consumer chooses to move about within the shop, consumer self-regulation is the term they used, influences the way he accepts the stimuli of the environment. For example, the shoppers that are influenced by internal and external factors of the given situation -state oriented shoppers- rarely display a structured behaviour in the shop and they are vulnerable to different stimuli (Kuhl, 1992). High intensity stimulation has a greater influence on spending money in the above category of shoppers as compared to action oriented shoppers who have thought about which areas of the shop they need to visit and what they want to purchase in advance. The findings of the Tai & Fung study (1997) are intriguing. They examined the application of the Mehrabian Russell method in two CD shops in Hong Kong. One of the conclusions they reached, among others, was that the model isnt that simple as it may seem, since the relationship between the environmental stimuli and humans is two-way. That means that the atmosphere of a shop, as the consumer perceives it, has a dynamic character, thus it not only influences the behaviour of the shopper but is also influenced by the shopper. The emotional state of the customer makes up the transitional stage in this interdependent relationship. Take for instance a shop which offers intense stimuli and as a result enforces the tendency for exploration and wandering in it. As the shopper explores the shop and observes the products, he feels greater pleasure, because he satisfies his curiosity. Simultaneously, this pleasant mood positively influences his perception of the shop and the stimuli that he receives in it and so the purchases are actually made. Gilboa and Rafaelli (2003) examined the relationship between two environmental properties -complexity and order- and emotions as well as the consumer behaviour of consumers in a shop. Colour photos of different departments of two grocery shops were used to carry out

this study, after first being assessed for the degree of their complexity. The findings of this study showed a positive correlation between order/harmony and the tendency of consumers for approach. From this, it can be inferred that the displeasure experienced by consumers during their shopping in grocery stores or super-markets may be a result of the complex layout of the space. Huffman and Khan (1998) had warned retailers not to make their shops overly complicated, supporting that the larger selection of products, which aims at creating a competitive advantage, may create confusion and overload of information in consumers. So instead of increasing their excitement for making purchases, it is possible to cause delay in selecting a product or the departure of the consumer from the shop without making any purchases. Finally, another study worth mentioning is that of Greenland and McGoldrick (1994) who made an attempt to adjust the indirect effects model in the field of financial services, with the goal to compare the influence of the interior design in contemporary and traditional type branches of banks on the opinion and behaviour of the clients. The model they used differs from the model that Donovan and Rossiter (1982) used because it outlines with greater clarity the network of influences between the environment of the bank branches and the desired results on the clients (creation of image for the branch, satisfaction for the services provided and perceptiveness to the sales techniques). Finally, it is evident that the modern design of the interior has a positive effect on the emotional state of the customers and on the assessment of the branch and the offered services.

2.4 THE INFLUENCE OF THE ATMOSPHERICS OF A SHOP A large number of researchers have been occupied with the influence of the atmospherics of a shop on different variables that concern the customer and his purchasing behaviour. With the aim to facilitate this research, Gardner and Siomkos (1986) dealt with the development of specific methodical approaches for the effective investigation of the influence of atmospherics on the cognitive and emotional state of the consumers. As it was concluded, the simulation of the atmospherics of the shop with the descriptive method influences the perception and the psychological mood of the consumers, which influences their purchasing behaviour as well as the opinion they shape as far as the products are concerned. Moreover, role play and realization of experiments with the participation of a third person dont seem to act impartially on the measurement of the influence of the environmental variables. Darden and Babin (1994) focused on the influence that the interior environment of a shop has on the emotional state of the customers. They emphasized the importance of the emotional character apart from the functional for the complete depiction of the personality of a shop. They also found a high degree of correlation between the emotional influence and the perception of the customers concerning the natural or functional characteristics of the shop.

Just as Russell and Pratt(1980)proved that the type and degree of the emotional influence that is exerted by the environment depends on the surrounding area, so Darden and Babin reached the conclusion that every shop has a unique emotional value for the customer. That means that shoppers are aware of the differences in the emotions that are provoked when they are in different types of retail shops. It is also stressed that such differences can be observed between different shops of the same type (e.g. Hondos Center and Sephora). All in all, their study supports that consumers connect specific emotions with specific shops, and that influences the opinion they form concerning the shop as well as their purchasing behaviour. The emotional importance that a customer assigns to a shop combined with its functional characteristics form the total shop image in the shoppers mind (Martineau, 1958). Especially when the offered product is in the form of services (health services, educational services, transportation services), the customers have the tendency to base their opinion of the shop and their expectations for the services provided on the characteristics of the environment of the shop (Ward, Bitner & Barnes, 1992). According to Langrehr (1991) the emotional response of a person to the environment of a shop depends on his personality, the amount of stimuli that he is capable of handling, his mood before he enters the shop as well as his mood while he is browsing about in it. Similarly, Grossbart et al. (1990) proved that the environmental predisposition of each person influences the way in which he responds to the atmospheric elements of the shop. Machleit and Eroglu (2000) reached the conclusion that consumers experience different emotions during their shopping when they are in different shops. They found that when shoppers are in task-oriented environments which means they are in shops where they do the necessary shopping for the week, the levels of excitement and pleasure are relatively low. However they didnt clarify whether the negative emotions that are provoked by the environment of a super-market or discount store are due to the buying conditions (time pressure, buying routine procedure) or whether it is due to the characteristics of the atmosphere (intense lighting, loud music, crowded corridors). They also observed the correlation between the consumers expectations and their emotional state when the atmosphere of the shop is different from the expectations that the customers had before they entered it. In another study regarding the factors that provoke negative emotions in the customers of a shop, Alain d Astous (2000) noticed that the degree of disturbance is associated with the source that causes it as well as with the demographic characteristics of the consumers. Specifically, the results of the study showed that among the stimuli that provoke displeasure, those that refer to the atmosphere and the human factor plays a far more important role than those that are associated with the designing and the layout of the shop. It also seems that women seem to be bothered more by unpleasant events as compared to men. As far as age is concerned, the study hasnt reached concrete conclusions: some elements of the shop environment are more annoying for younger customers (e.g. lack of cleanliness), while other factors bother customers of older age (e.g. loud music).

Examining more factors that influence the formation of the emotional state of the shoppers during their visit to a shop, it is worth making a reference to the study of Dawson, Bloch Ridgway (1990). They proved that the purchasing motives that compelled the consumers to visit the shop had an influence on the emotions that they developed in the shop as well as their purchasing behaviour. So customers with strong buying motives reported high levels of pleasure and excitement and tended to assess the environment more positively. Consumers dont always visit a shop with the motive to buy or collect information about a product or service, but also for emotional reasons or to enjoy the shopping procedure (Hirschman & Holbrook, 1982). In the last case, that of hedonistic consumption, it is possible for the atmosphere of a shop to substitute the product. Then the retailer, by arousing the visual, aural, tactile, olfactory, and even taste senses, can create the suitable conditions, so as to encourage the realization of impulse buying. Babin and Attaway (2000) stressed the importance that a retailer must place on the layout of the interior of his shop, in order to create value for the consumer who visits the shop. By creating the suitable atmosphere and layout, the retailer can encourage the hedonic shopping value or the utilitarian shopping value which is the effective realization of preplanned purchases, depending on the target market. In this way, it is possible to attract customers, to build strong long-term bonds with them and to increase the sales. The layout of a shop interior of a department store and its effect on the excitement of the customers and their desire to remain in the shop was the focus of Wakefield and Bakers study (1998). Their findings were in agreement with the conclusions of Bellenger et al. (1977), highlighting the significance of the natural environment of a department store in the creation of a first impression and thus of an initial level of excitement in the consumer. The strategic element of a shop interior which creates excitement is the architectural design, whereas all the atmospheric factors except for the lighting and the temperature are positively associated with the provocation of excitement and desire to remain in the shop. Excitement may be provoked by music or an interesting layout. Stoltman, Gentry and Anglin (1991) found that excitement which stems from visual stimuli compels consumers to visit the shop more often and to make purchases. In fact, Rook (1987) reached the conclusion that consumers associate impulsive shopping with the emotions of excitement and psychological arousal. He reached this conclusion by conducting a survey. So far, it has been proven that the environment provokes various emotions in people, but the mood of the consumer at the time he is exposed to the atmospherics of a retail shop must be taken into account. The mood he is in at the given time can affect the way in which he perceives the various external stimuli but also the way he react to them. Gardner (1985) presented in a relevant article, the effects of the shop and of the behaviour of the shop assistants on the mood of the customers, which in turn, influences the purchasing behaviour. However he supported that while the environment influences the mood of the people, the peoples mood may influence the way they perceive their environment.

In a shop that sells services, the customers mood may have an effect on the way he assesses the service process and the service product itself. It influences his memory of the whole purchasing experience. It has been observed that customers who are in a good mood are more eager to follow the recommendations of a salesman, to be more cooperative, more agreeable and more satisfied from the services offered. In addition, clients who are in a good mood have the tendency of positively assessing the level of customer service acknowledging that their expectations were met. A possible explanation may be the fact that a positive mood distracts a person from the detailed processing of the information that he receives. In this way it is less likely that he will observe or criticize a possible negative factor (Mackie & Worth, 1989). It has been observed that a complicated environment disorients the customer and arouses feelings of nervousness and annoyance. However, as Gardner pointed out later (1985), a shop must be designed in such a way so as to change the customer mood the minute he steps in and make it positive towards the retailer. Its all about the consumer experience. Consumers tend to associate their visit to a shop with the feelings that they had at that moment. In general, buyers prefer to do their shopping in shops that make them feel pleasant and they avoid shops that arouse negative feelings in them. Golden and Zimmer (1986) reached the conclusion that people make their purchases in shops that they like and they like the shops that they choose to make their purchases in. In fact, Babin and Darden (1996), reached the conclusion that the creation of a negative mood among the customers of a shop reduces the satisfaction gained by the offered services whereas the creation of a positive mood increases the satisfaction gained by the offered services. This occurs because negative emotions are far more powerful than positive ones. However, it holds true, that the negative mood generates the tendency to avoid the specific environment so customers want to leave as soon as possible and in some cases this leads them to make hasty thoughtless purchases. On the other hand, positive emotions are associated with customer satisfaction and increase of the money spent on purchases in the shop. According to Gardner (1985), a positive mood at the sales point will lead consumers to take action that will have a positive result even though the same action does not always have the same result for different types of purchases (trying on clothes). Sherman and Smith (1986) reached the remarkable conclusion that the consumer mood can influence his purchasing behaviour even after he has made his purchasing decision. Concerning the products, Gardner (1985) mentions that the consumer mood influences the assessment of the features of a product, the image of certain brands as he perceives them as well as his preferences and his final purchasing decision. The assessment of a brand is affected by the features of the environment where the consumer encounters the product (Akhter, Reardon & Andrews, 1987). More specifically, when the consumer hasnt formed a specific image for a brand (from advertising, promotional actions, comparative reports and other resources) the image that he does form is greatly influenced by the atmospherics of a shop as well as the shop employees.

Another interesting experiment is that of Swinyard (1993), who with the help of different senarios tried to manipulate the mood of a group of students, in order to study the effects on their purchasing behaviour. He was led to the conclusion that the psychological mood of the consumer influences the realization of a purchase when the latter has high involvement in the purchasing process and his experience from the shop is a positive one. One explanation that may be given is the following. The customers of a shop who have high involvement in the purchase of a product or service has to process more information and thus his psychological mood may influence his selection, deciphering and assessment of different environmental stimuli. So the environment of the shop plays a significant role in the quality of the purchasing experience, because even if a customer enters a shop in a good mood, his exposure to negative stimuli may alter his mood for the worse with all the ramifications concerning his purchasing behaviour. Numerous customers go shopping while being in a bad mood. According to Maxwell and Kover (2003), this segment of the consumers is not in the mood for searching, making decisions for the purchase of goods or having high involvement in the purchasing process. What they are interested in doing is making purchases that will improve their mood and they show special interest in new products and services. The ideal shop environment for them has a simple interior layout, which ensures easy access to all the products, pleasant atmosphere (music, scent and lighting) and it doesnt require interaction with the sales staff. In a study carried out by Sharma and Stafford (2000), it has been proven that the atmosphere of a shop is reflected in the image that the customer forms concerning the salesmen and the degree to which he is persuaded by them. The credibility of the salesmen is influenced by the prestige of the shop that is reflected in the environment of the shop. Consequently customers are more easily persuaded to make purchases by salesmen who work in luxurious shops as compared to those who work in discount shops. It has also been observed in shops which have a luxurious or prestigious interior, a reduction in the number of the salesmen didnt seem to affect the purchasing behaviour of the customers. This testifies that the atmosphere of a shop plays the most significant role in the persuasion of the prospective buyers. On the contrary, at discount shops, where the atmosphere is of no value, the increase in the number of salesmen can bring about a significant increase of sales as customers are primarily persuaded by the promotional actions of the salesmen. Smith and Burns (1996) noticed that the merchandising that is applied on the aisles of a super-market has an influence on the perception of the consumers regarding these specific products. In fact, the increase in the number of different codes (SKUs) of a category of products and the simultaneous reduction in quantity of each give the impression of higher prices. In the opposite case small variety of products but in large quantities the consumer forms the image of a shop with the massed-out look, the kind that offers products at low prices.

Finally, Bawa et al. (1989) pointed out the role of the marketing within the shop environment focusing on its ability to attract different customer types and influencing their consumer behaviour. The results of their study proved that in shops with a wide variety of products, consumers didnt display loyalty towards a name brand but were more likely to desire to try out new products. In addition the existence of display cases, discount coupons seemed to increase the consumers sensitivity towards prices and promotional activities thus sabotaging their loyalty towards one brand.

2.5 THE INFLUENCE OF SPECIFIC ATMOSPHERIC ELEMENTS OF THE SHOP The vast majority of researchers have focused on the influence of specific atmospheric elements on the consumers purchasing behaviour such as scent, lighting, colour (there is a section devoted to this element alone) and the architecture of the shop interior. These elements stimulate the senses of a person and primarily the hearing, smell and vision. All these studies have reached the same conclusions that the atmospheric elements have an impact on the emotional and cognitive state of the consumer and as a result they influence his behaviour in various ways. Thus, the correct manipulation and combination of the atmospherics of a retail shop can direct the customers purchasing behaviour so as to meet his sales target. 2.5.1. Music Music is one of the factors which can differentiate the shop atmosphere. It is a particularly attractive variable for the proprietor, it is cost efficient, it can easily be changed and it is considered to have a profound effect on the customer behaviour. It is an undeniable fact that music is a powerful stimulus which influences the mood of the individual and indirectly the consumer purchasing behaviour (Bruner II, 1990). For example in some restaurants, fast-paced music can be heard compelling customers do all their activities faster thus reducing the time they spent seated at their table, especially during the rush hour when the demand is high. On the contrary, during the early evening hours, when business is slow, soft music is preferred as it relaxes the customers and directs them to accompany their meal with a cocktail or a dessert. The influence of the tempo of the music on the behaviour of the customers was studied by Milliman (1986). He came to the conclusion that the use of slow-tempo music made the atmosphere more relaxing, facilitating the behavioural approach directing customers to extend the time they spend in the shop encouraging them to consume more drinks. However there was no increase in the number of food orders that the customers ordered while under the influence of the relaxing music. It is also worth mentioning that the number of customers, who left from the restaurant because they didnt find a table immediately, was not influenced by the tempo of the music that was playing. However, when they substituted the relaxing music with extremely loud and repulsive music more customers left from the shop.

Contrary to Milliman (1986), Caldwell and Hibbert (2002) found that the tempo of the music is not the only factor that affects the consumption of beverages and food, but the music preferences of each individual also play a significant role. These two factors combined can have an influence on consumer behaviour. In a past study, Milliman (1982) noticed that the fluctuations of the tempo have an impact on the speed at which the customers move in the supermarket as well as the value of the purchases that are actually made. So, his suggestion is for retailers to choose the music according to the targets they want to achieve, since the behaviour of the customers can be directed subliminally. However, Chebat and Vaillant (2001), in a relative article, supported that music influences consumer behaviour through cognitive processes. More specifically, slow tempo of music creates brain alpha waves which, in turn, stimulate the cognitive process. For this reason soft music is considered to be the ideal stimulation level for the initiation of cognitive activity. This happens because music has the property of attracting a persons attention. However if the music is too fast of too loud then it may distract the customer from the persuasive arguments of the salesman, while on the other hand slow music facilitates the cognitive response during the sales process. In research carried out by Dube and Morin (2001), using 110 mall shoppers as their subjects, it was observed that the different degree of pleasure that was caused by the music influences the image of the shop that the consumer shapes and subsequently it influences the customers response to the sales staff. Music is often used to improve the mood of consumers and to have a positive effect on their emotional state at the time of the purchasing process (Herrington & Capella, 1994). The effect of the type of music (classical-modern) on the consumer behaviour of the customers of a Liquor Store was investigated by Areni and Kim (1993). Following comparative analysis of the results of their experiment they concluded that classical music affected customers to spend more money. In fact, the higher amount of money spent was on a more expensive selection of wine and not on more bottles of wine. This view is in agreement with the views of McInnis and Park (1991) that the music has to match the environmental framework where it is encountered, in order to affect the customers and bring about the desired result. There is an underlying symbolic meaning to each purchasing experience. If the consumer connects the consumption of wine with luxury and prestige, then classical music creates a certain atmosphere, getting the message across to the customer that the product is of high quality and high price. In conclusion, Herrington and Capella (1994) supported that the music has to match the type of shop and the offered product or service, as well as the time of the day and the target market segment. Another practice that is commonly used in retail shops is zoning, which means having different types of music in different parts of the same shop. The goal is to target different segments of the consumer population, based on age, sex and preferences. Yalch and Spangenberg (1993) noticed that by playing the suitable type of music in each section of a Department Store it improved the atmosphere and it compelled people to make purchases

and spend more money than they would. In addition, their analysis of the data showed that there is a correlation between music and the age and preferences but there is no association between music and sex. In their previous experiment (1990), the same researchers confirmed that the perception of the customers about the time spent in a shop differed according to whether the music was in the foreground or background. When the music was not in agreement with the customers preferences, the customers were more likely to claim that they had spent more time in the shop than they actually had. A possible explanation for this phenomenon is the fact that the shoppers are exposed to an unfamiliar environment (music which they dont usually listen to) and thus they are more observant of what is going on around them and they are capable of recalling more information from such an experience. As a result they are under the impression that they have spent more time in the shop. Hui, Dube and Chebat (1997) studied the effect of music on the responses of the customers as they were queuing in a bank. What they noticed was that music had a positive effect on the way customers perceived the offered services, without it having an effect on the perceived time spent waiting for the service. On the contrary, the customers were under the impression that they had spent more time in the bank when music was playing. As Kellaris and Kent (1991) mentioned, the perceived time waiting increases when the music is not to their liking. This event however doesnt have a negative effect on the approach to the bank. Finally, it is worth mentioning that music improves the emotional response to waiting in a queue, only when it is in accordance with the customers tastes and preferences. This happens because waiting creates negative feelings in general, so a strong stimulus such as pleasant from the environment is needed, in order to limit the negative emotions. What is remarkable is that classical music always enhances the image of a shop, even for customers who may not like classical music.

2.5.2 Scent Scent is an atmospheric element that has the capability of creating a more pleasant environment for making purchases. Scent can be a competitive advantage for the retailer. The recognition and the meaning of each scent is a complex procedure. In order to understand this phenomenon, one must study psychology of memories and human biological reactions. Among the five senses, the scent is considered to be more closely associated with the emotional center of the human brain that is why the scent that is dominant in the interior of a shop is considered to be one of the most powerful stimuli in provoking emotional response in consumers (Wilkie, 1995). The inundation of the interior of buildings with a perfume as a mean to influence human behaviour is becoming more and more common. This can be illustrated by the fact that Proctor and Gamble came out with devices that can be installed in the aisles of shops. In

addition, some shipping companies allow scents to circulate through the vents in order to keep the managerial staff in a state of awareness (Morrin & Ratneshwar, 2000). An experiment was carried out by Nike concerning the purchase of athletic shoes. They scented a changing room with a soft scent of flowers and another one with fresh air. In the first case the likelihood of making a purchase was 84% more than in the second case. A similar experiment was carried out concerning gambling machines in the Las Vegas Hilton Hotel Casino. This study showed that a machine that had been scented with a special perfume accepted 45% more money than another one that had been scented differently (Siomkos, 2001). Traditionally, some specialized shops, like bakeries, and shops that sell coffee, cigarettes or nuts have relied on the scent of their products to attract customers (Bone & Ellen, 1994). However, in the past few years many customer service shops as well as retail shops have made sure to add a special scent to their interiors. The scent that is in the air, meaning the scent that is not emitted from a particular object, is quite interesting because it can affect the way the customer perceives the shop and its products, even those that dont have a scent of their own. In many articles it is supported that the scents influence the cognitive state more than the emotional state of the consumer. Michon, Chebat and Turley (2005) found that the scent of the air has an impact on the perception of the environment and not on his emotions. This is in agreement with the findings of Bone and Ellen (1989) that had proven that the influence of the scent on the customers mood is marginal. Chebat and Michon (2003) reached the conclusion that scents are associated with experiences, thus their significance is in the cognitive field rather than the emotional field. More significantly, the latter observed that the scent of the shop contributes to the formation of a positive image of the shop and indirectly to the formation of the image of the products offered, which influence the expenditure on behalf of the customer. However, the type of scent or its intensity doesnt seem to play an important role. The perception and behaviour of the consumer is contingent upon the presence or absence of scent in the atmosphere (Spangenberg, Crowly & Henderson, 1996). The existence of scent influences the perception of time: the time that customers spend examining the products, queuing or waiting to be served by the shop assistant seems to be less when the shop atmosphere is scented. Michon, Chebat and Turley (2005) also realized that the scent of a shop positively influences consumers only when the shop is averagely crowded. This phenomenon may be due to the fact that during rush hour, customers are exposed to far too many stimuli so as a result they dont pay attention to the atmospherics factors. That is the reason that scents are more noticeable by recreational shoppers, those who just want to browse. These shoppers have more time available, they pay more attention to the environment and are more perceptible to the environmental stimuli. In addition, Mitchell, Kahn and Knasko (1995), carried out an experiment which concluded that the influence of a pleasant scent in the air on the purchasing decisions of the consumer

depends on the agreement of the scent with the category of products. In the case that the scent matched the category of products, the consumers devoted more time to the examination of the products, examining all their functions and inquiring for more information and variety, and they took all the factors into account before making their final decision. However, while the inundation of the air with a scent can boost the sales of a certain product it may have a negative effect on the sales of another product. Consequently, the effective scenting of the atmosphere of a shop must support the sales of all the products that are offered in it (Chebat & Michon, 2003). Moreover, Fiore, Yah and Yoh (2000) came to the conclusion that by placing a product on display and giving it the appropriate scent it brought about a significant increase in the level of pleasure derived during the purchasing experience in the sample of female consumers. At the same time there was an increased tendency to approach the product, to express their intention to buy it, and the price they were willing to pay in order to obtain it was higher. However, the most influential factor concerning their purchasing intention was the element of cognitive pleasure, the association of past experiences with the specific product or even the fantasy of using the product themselves. The appropriately scented environment had a direct impact on cognitive pleasure. According to Morrin and Ratneshwar (2000) the presence of a pleasant scent in the shop atmosphere improves the assessment of the products, especially when it concerns brand names that are unfamiliar to the consumers, and it reinforces the recollection of the product in the future. The results of this study indicate the way the human memory becomes familiar with the brand names is either through the meticulous examination and assessment of the products or through their association with an atmospheric element (in this specific case, the scent). Furthermore, Spangenberg, Crowley and Henderson (1996) reached a similar conclusion, reporting that the inundation of the atmosphere with a scent had the tendency of improving the perceived image of the least appealing products whereas the influence concerning the products that had been initially positively assessed was marginal. The Gestalt theory concerning the consumers perception of the retail environment was taken a step further with the research of Mattila and Wirtz (2001) who, supported that the customers observe the environment of shops that offer services holistically and their responses depend on the total of the stimuli that they are exposed to in these shops. Thus, pleasant atmospheric stimuli have positive influence on consumer behaviour, when their stimulating properties are matching rather than having no connection with each other. For example, in a customer service shop the music (fast or slow beat) has to match the scent (stimulating or relaxing). Generally, when the stimuli of the environment interact and supplement each other so as to create a coherent atmosphere, the customers express a higher level of satisfaction, tend to approach the products and make impulsive purchases.

2.5.3. Lighting The lighting is another important element of the interior environment of a shop. Lighting does not only play an aesthetic role , but a functional role as well because it facilitates the display of the products, the reading of the tags, labels and signs and the circulation of the customers. There are different categories of lighting. The general lighting concerns the whole shop and serves functional purposes. The local lighting is used in spots that require special treatment, like display cases. Furthermore, a shop can have perimetric lighting on the walls, freestanding light fixtures or decorative lighting units (Papavassileiou & Baltas , 2003). In addition, Summers and Hebert (2001) installed additional lighting on products that were on display in shops and they studied the reactions of this on the consumer behaviour, with the assistance of a video camera. The results of this study showed that the level of lighting influences the approach behaviour of the customers in such a way that under circumstances of intense lighting the customers spend more time at the displays touching and holding the products. These findings matched the findings of an older study, carried out by Areni and Kim (1994), who observed that bright lighting encourages the customers to examine and assess products meticulously without having an effect on sales. It is worth mentioning that the lighting had an effect on the products that were situated at eye level. This reveals that dim lighting wasnt enough to carry out the functional activities, like detecting the price tags or recognition of the product. For this reason, lighting in the retail shop interior has to be relevant to the activities that are carried out in it. The excessive, surplus light in all the areas of a shop does not only add to the cost but also doesnt allow the creation of intense contrast for the promotion of the products. Furthermore, it may cause damage to sensitive products, and it can tire out the customers and have a negative effect on the customers behaviour (Economou,1997). Especially in the interior of supermarkets, it has been observed that the appropriate lighting, the kind that makes the customer feel comfortable in a pleasant atmosphere influences the sales in a positive way (Self Service, 1997).

2.5.4. The architecture of the interior The architecture of the shop has to do with the layout of the products and with the general organization of the interior. The successful design of a shop depends on the existence of a specific functional design template. It must take into account the easy access of the products from the customer and the clear separation of the different departments. The careful layout of a shop helps the customers with their orientation and also helps them find what they are looking for. This gives them a sense of control (Bitner, 1992). In continuation, Park, Iyer and Smith (1989) did research concerning the knowledge of shop design and combined it with the time that the customer has at his disposal to make his

purchases thus influencing his shopping behaviour. They carried out an experiment in a supermarket, and found that the two factors mentioned above influence the level of spontaneous purchases, these including brand or product switches as well as changes in the quantity they initially planned to buy. More specifically, they noticed that the knowledge of the interior of a shop, independently of the time that a customer has at his disposal for shopping, has a positive effect on brand or product switching. In fact, 1/3 of the unplanned purchases were made because of the reminders of new needs during their stay in the shop and the processing of this new information. The customers awareness of the layout influences the recollection of memories associated with the aisles such as the position of the customers favourite brands. On the other hand, when the customer is not familiar with the layout of the shop he has difficulty in locating the different products and so he wastes a valuable part of his available shopping time. The pressure of time contributes to the failure to make the planned purchases both in terms of products and quantities and it also reduces the percentage of the unplanned purchases because the customer doesnt have the time to process any more information in the shop. A basic principle in the layout of shops is that the amount of money spent by the customer increases the longer he stays in a shop and the longer the distance he walks in the shop (Papavasileiou & Baltas, 2003). As a result many shop layouts have a goal to maximize the time the customer spends in the shop and to increase the distance he covers so as to be exposed to as many purchasing stimuli as possible. The architecture of the interior must facilitate browsing making it a pleasant and enjoyable experience even if the customer hasnt come to the shop with the intention of making a purchase (Lombart, 2004). A pleasant walk within the shop can encourage spontaneous purchases, it can create loyal customers and improve the reputation of the shop via word-ofmouth. Furthermore, the presence of a lot of people in a store contributes in a positive way to the atmosphere making it appear as a place full of action rather than deserted. The presence of a lot of people can be an indication and verification of quality. In reality, customers dont find an empty shop appealing thus a tolerable amount of customers is welcome. On the other hand, crowding creates the image of an inexpensive shop (Langrehr, 1991) and brings about negative consequences, like a decrease in the time spent in the shop, a decrease in the spontaneous purchases, and finally a decrease in the planned purchases or a postponement for another date and this can even lead to change of shop (Grossbart et al., 1990). In an empirical study, Eroglu and Machleit (1990) used colour transparencies and different scenarios to investigate the retail crowding perception in retail shops and its effect on the customers purchasing behaviour. They realized that the sense of crowding became more intense as the retail density increased. When there was high retail density the perceived crowding was higher for those customers who had come to the shop to make specific purchases while having limited time at their disposal task oriented shoppers compared

to those who had time to browse, non-task oriented shoppers. In the cases of crowding, the pressure of time had a negative effect on the satisfaction of the customer from the shop environment. When the shop was very crowded there was pressure of time which had a negative effect on customer satisfaction. Furthermore, Eroglu and Harrell (1986) had suggested that the expectations of consumers regarding how crowded the shop is, have a reverse correlation with the perceived levels of crowding and their satisfaction with the shop. If the consumer realizes that the shop is less crowded than he had expected, then he wont be so dissatisfied with the conditions of the environment. Also the shoppers who are pressured for time are more likely to be dissatisfied from their purchasing experience in a crowded shop. 2.6 THE INFLUENCE OF COLOUR Colour is a communicative element, it has its own language and it is an effective mean for getting across messages and arousing emotions in humans. The basic colours are red, blue and yellow. White and black are neutral colours, while the rest, which are characterized as supplementary, are a combination of the basic colours, eg. Red and yellow make orange, blue and yellow make green, red and blue make violet. Red, yellow and orange are considered to be warm colours while blue and green are cool. The symbolism of colours develops ideas and makes allusions within a given context. Take yellow for instance; while it is considered a bright colour, it also has a negative aspect. Studies have shown that yellow increases the nervousness and anxiety and makes babies cry more. As yellow is the colour that the human eye sees faster, it is considered to be ideal for drawing ones attention. However, a whole room that is painted yellow can provoke negative emotional responses. Red is considered to be the most stimulating colour. It increases the heartbeat and puts people in a state of awareness. Green is right cross from red on the colour wheel and has a calming effect on people. It is widely used in operation rooms in hospitals and in medical equipment, to calm the patients, when they come round from anesthesia, and to reduce their tendency for dizziness or vomit. Black is considered to be a strict but elegant colour, especially when combined with white. Grey enhances the creativity of humans but it has been observed that it is not preferred by people who live in areas with rainy climate. It also symbolizes seriousness, success and power, properties which it ows to one of its two basic elements, the black colour. In the following chart there is a summary of the different meanings that are given to each colour (Zotos, 2000): Red Cheerfulness, danger, vitality, power, provocativeness, bravery, excitement, heat, passion. It is associated with anger, war, blood. It refers to and appeals to the memory of the consumer.

Light blue Peacefulness, tranquility, devotion, security, tenderness, coolness, melancholy, formality. It is associated with cold, ice, distance, infinity and peaceful reflections. It primarily appeals to the sensibility of the consumer. Yellow Optimism, brightness, hatred, happiness, spring. It is associated with the sun light, with shine and radiance. It is the colour which attracts the attention of the receiver more than any other. Orange Fire, heat, action, harvest. Green Peacefulness, tranquility, humidity, spring, youth, relaxation, immaturity. It is associated with hope, meditation and nature. Black Mystery, death, mourning, gravity, austerity. It is associated with hatred, used to express power but also elegance. White In the western civilization it means purity, innocence, cleanliness, clarity, sterilization. It is associated with void, infinity, the inexplicable, while it is used to express absolute silence. In the Far East it is considered to be a colour of mourning. However, in different cultures, the same colour is preferred for different purposes and alludes to different symbolism. The symbolic meaning which is connected with each colour is the result of a long term process which is interpreted by historic, religious, political, traditional, racial, aesthetic and preventive factors (Panigyrakis, 1999). The fact that different colours carry a total of symbolic meanings which differ means that with the use of a colour, if used correctly in a specific environment, we can get across complex information in an effective way (Judd & Wyszeski, 1975). While black is a colour of mourning in European countries, white in China and Japan plays that same role. Green, which symbolizes Islam, in Muslim countries, is an especially acceptable colour, while in the Far East it is associated with tropical illnesses and bad luck. Red is the most popular colour in the Chinese market, while yellow and green are preferred in most African countries. Such diversity has an immediate impact on the communicative policy of an export business, and quite often there is an imperative need to alter the colour of the packaging of a product or the advertising message of a product. Basically, the target is not to distort the positioning of a product and to maintain the effectiveness of the advertising campaign, avoiding the use

of a colour which may have positive connotations in the cultural system of the export company but may have negative connotations in the export market (Panigyrakis, 1999). Usually, the selection of colours which are included in the flag of each country usually have positive connotations for their residents, causing them to have a positive predisposition towards the product that is promoted. In a survey which was carried out concerning the preferences of consumers worldwide (Heathe, 1997) they came to the conclusion that there are some colours which convey the same meaning worldwide, but nonetheless there are differences between nationalities. For example by choosing a colour that represents power, the white people preferred red, while black Americans chose black and the Spaniards chose light blue. In addition, light pink seemed to be associated with sensitivity for the white people whereas Africans chose white for the same purpose. As far as formal attire is concerned, black and red are universally acceptable colours. However black Americans prefer gold and silver, while the women from Spain preferred orange, bright red and fuchsia. The popularity of the colours develops throughout time under the influence of social, economic, and political factors (Swain, 1996). As an example we can mention the preference for khaki, grey and brown during the period of World War II and the replacement of dark colours with pastel shades in the early 1950s. The evolution of the trends in colours reflects the change in preferences, in the lifestyle and in the ideals and values of each generation, but the prevalence of the cultural elements of each people remains. In international bibliography, primarily in the field of physiology and psychology, we encounter an abundance of studies focusing on the effect of colour on human behaviour. In the marketing field, the studies concerning the effect of colour have concentrated on advertisement and on the packaging of a product. The common element in all these studies is the fact that colour can provoke certain autonomous biological reactions; it can have an impact on the emotional state of an individual and draw his attention. The owners of different shops have made good use of these studies, using colours that create the suitable atmosphere in their shops for the realization of purchases. 2.6.1. The influence of colour on the human body. The science of physiology has dealt with the biological reactions that are caused by different colours. Gerard (1957) studied the psycho-physiological influences of colour on the human body by inundating red, white and blue bonds of light through a screen. Following measurements, he concluded that the blood pressure increased under the influence of the red light, while it was reduced by the presence of blue light. In the same way, the rhythm of breathing was more intense while exposed to red light whereas it was less intense while exposed to the blue light. Moreover, the red light made people blink with greater frequency than the blue light. In another experiment, Wilson (1966) measured the levels of stimulation or otherwise known as psychophysics activation which corresponds to each colour. The results of his measurements confirmed the initial hypothesis that red creates a greater stimulation than green. Clynes and Kohn (1968) found that the function of the brain is influenced by red

more than by any other colour of the same intensity. In fact, Clynes (9177) supported that the colour red brings about stimulation of the human brain, by its very own nature. Another scientist named Goldstein (1939) investigated the changes in the body posture of mentally retarded patients during their exposure to large sheets of paper in different colours. After numerous experiments, he found that specific colour stimuli made patients change the placement of their hands. By alternating the colours blue and red, he noticed that blue compelled people to stand in such a way so as to reveal introversion and reservation. On the other hand, the position of the hands at the sight of the colour red expressed a more extroverted and emotional behaviour. Goldstein also noticed that red distorted the perception of size, length, weight, and texture as compared to the colour green. In addition, Nakshian (1964) carried out similar experiments on healthy people. He concluded that red causes hands to tremble more than green does, and we also have a higher speed in movement. All the above studies lead us to the conclusion that warm colours (like red and yellow) cause a natural stimulation while cool colours (like blue or green) have a more calming effect. 2.6.2. The influence of colour on a persons psychology. Numerous studies have proven the correlation between colours and human psychology. It has been proven that different colours provoke specific emotional reactions in human beings. Furthermore, Gerard (1957) tried to explain the way in which colours are related to emotions, resorting to commonly acceptable samples of normal responses. He further supported that red and the feeling of anger stimulate the energetic capability of a person and compel him to become active. That is why red and the feeling of anger are interrelated. A further possible explanation refers to the phenomenon of synesthesia, which is the feeling that is created in some body organ from stimulation which has an influence on another body organ. In this way dark colours may be associated with weight, whereas red is connected to heat. On the other hand there are those who believe that the association between colours and emotions are simply based on the preferences of each individual. In other words, when a colour and an emotion are at the same level of ranking on the scale of the individuals preferences, then it is only natural for them to be interrelated. For example the colour red may be associated with happiness, because they are both valued and preferred by people (Terwogt & Hoeksma, 1995). In a study that was carried out by the students at the University of Georgia (Kaya & Epps, 2004) emphasis was placed on the symbolic property of colours. Each individual associates different colours with objects, people, places and situations. So the association of a particular emotion with a colour depends on the personal preferences and the past experiences he has had with that particular colour. For example a young woman answered

and said that yellow makes her happy, because it reminds her of the school-bus and it takes her back in time to childhood. Many psychologists believe that individuals are either dominated by warm or cool colours, meaning that they are more sensitive to the relative warm or cool ends of the colour range. An individual, who is more sensitive to warm colours, is characterized as a visual type and able to be embodied in their social environment. On the contrary, individuals who are dominated by the dark shades often feel cut off from the outer world, they tend to be frigid and emotionally reserved and they have difficulty in adjusting to new situations. Furthermore, Bjerstedt (1960) found that the warm and cool colours have different psychological interpretations and they are associated with different notions. The findings of their experiment showed that people who prefer warm colours are more receptive to external stimuli and they react quicker to them. They also seem to have a positive predisposition against the satisfaction of a certain need. In contrast, those who prefer cool colours are more selective in their responses to different stimuli and they are not easily distracted by noise. In another study by Schaie and Heiss (1964) who mention that warm colours (red, yellow, orange) possess high stimulating properties and cause enthusiasm and emotional excitement. In various studies that have occasionally taken place, the colour red is associated with action, adventure, vitality as well as aggressive and revolutionary intentions. This has its roots so far back in prehistoric times, when primitive men saw red they understood that war broke out. Smets (1969) also proved that subjects perceive the time period differently depending on what colour they are looking at. For example, they perceive the time period as shorter while looking at a red stimulus than when looking at a blue stimulus. With reference to the colour yellow, we often hear that yellow stimulates the mental situation of a person. It is associated with happiness and entertainment. However, its stimulating property is less than that of the colour red and the relative emotional states seem to have a more permanent rather than impulsive character. On the other hand, the cool colours, such as green and blue, are associated with calmer and flaccid emotions meaning that they seem to have limited stimulating properties. They reduce tension, they relax, and they are connected to relaxation and meditation. Blue is considered to be the coolest colour, as it is directly opposite to red, the warmest colour on the range of colours. Individuals who prefer blue are noted for the control they have over their emotions and behaviour. It is worth mentioning that according to research, blue seems to be the most popular colour. In an older study, Babbitt (1878) noticed that when individuals with increased aggression were placed in rooms where the red light was prevalent, the symptoms of their aggression were aggravated. On the contrary, when the same individuals were transferred to rooms where the blue light was prevalent they started to calm down. In general, the dark and dreary colours create a negative mood, they lower the morale and they are considered to

encourage criminality and suicide, while they obstruct optimism, inspiration and finally success. 2.6.3. The influence of colour on the packaging of a product The packaging is a powerful tool in the hands of the marketer, as it contributes to the creation of a special identity and image for each product, whilst it strengthens the bond between the consumer and a specific brand, especially for categories of consumer products of low involvement (Underwood, 2003). Generally, the packaging is characterized as an indispensable part of the communicative strategy of the product in the market segment that it is targeted and it may make a determining contribution to the creation of a unique sales suggestion. In fact, retailers often use the packaging of their products as part of their interior or exterior decoration, aspiring to the presentation of a specific shop image. They also use the packaging of the products to encourage buyers to browse in the shop, in an effort to increase impulse buying or purchases made near the cash register, like chewing gum, chocolates and razor blades, during the customers stay (Panigyrakis, 1999). The colour of the packaging of the product is one of the most important aesthetic characteristics, as it communicates with the spiritual world of the consumer and it becomes a direct stimulus for the purchase of the product. The correct selection of the colour can be a determining factor in the impression it makes on the memory of the consumer, in his desire to approach, touch or try out the product and in the final acceptance stage where he goes ahead with the purchase. More specifically, it is argued that when a consumer sees a product for the first time in an in-store display, about 60% of the first impression comes from its colour (Heath, 1997). Quite often, the colour of the packaging has as its goal to get across specific properties of the product, like cleanliness, luxury, power or natural origin. At other times, it targets the recollection of situations, experiences and the arousal of similar emotions, e.g. a chocolate in a red wrapper alludes to love, being in love thus creating positive emotions. As for yellow, it is the most noticeable of all the colours and it gives the consumers the impression that the product they are purchasing is a bargain (American Nurseryman, 1996). On the contrary, black represents elegance and eccentricity and it is used to add high prestige and class to the products. On the other hand, green is associated with nature and usually conveys the message that the product contains natural ingredients. White means freshness and purity as blue does too but it also implies honesty, self-confidence and knowledge. Finally, red conveys power and vitality, making the stimulation of the consumer more intense. In a study (Sead & Gill, 2000) concerning the colour preferences of consumers crossculturally it was found that blue is the most popular colour while yellow is the least popular. This unanimous preference for blue is likely related to the colour of the sky and sea two dominant elements in the life of all peoples. Despite all the above, preferences for colours change according to the given situations. These in turn are connected with specific

traditions of each culture. This is illustrated in the preference for red on Valentines Day or the preference for green on St. Patricks Day. Even though fashion does not change that often for the packaging of products as it does for clothes, there are always some colours that are considered to be modern and others that are outdated. In that way, white, even though it is a symbol of purity, it loses in the popularity contest. This is partly due to the fact that the companies dont want their products to be confused for Generics, which in most cases are available in simple white packaging (Malliaris, 2001). In an article (Marketing Management, 2003) it is mentioned that for the consumers, who arent loyal to a specific brand the change of the colour on the packaging may draw their attention and enhance their respect for this brand. Especially for small and steady categories of products, such as flour, the new packaging is likely to lead to the purchase of a product, when the message that it is conveying is in accordance with the initial positioning of the brand. However in intensely competitive categories of products, such as cereals, what is of utmost importance is the creation of a unique and impressive packaging. On the other hand, for the loyal consumers of a brand name alteration of the colour on the packaging can be confusing and it may reduce the recognition of the brand. There are some striking examples from the American experience (Malliaris, 2001). We can easily conclude that the commercial success or failure of a product may well depend on the colour of its packaging. When the designers changed the colour of the Barrelhead beer can, from blue to beige, the consumers believed that it had become more tasty and refreshing. In reality, its taste had not changed at all. In the same way consumers believe that the darker the orange colour is on the can or bottle of orange juice the sweeter its taste will be. Even though it is difficult to make a correlation between the colour and the sales of a product, the designers of Canada Dry claim that since they changed the colour of their product Ginger Ale (no sugar added) from red to green and white, sales went up by 25%. The reason being that the red colour that was on the can gave the impression that it was just another Cola product. Ritz Crackers of Nabisco, upon celebrating their 50 years, slightly changed their packaging. The new packet was redder and decorated with a golden ribbon, as the target was for the Ritz Crackers to appear richer and become more attractive to young consumers who possess a high income. Another company, Microsoft, following the suggestions of their designers changed the colour of its packaging from green to dark red and blue. This happened not only because green doesnt draw the attention of the consumer but also because it is associated with frozen vegetables or chewing gum and less with high technology products. When the detergent Tide was created, in the mid-50s it was not per chance that they put a white product in a bright orange box. This contrast between product and packaging had as its goal to convey a message: this white detergent is associated with cleanliness, while the orange packaging means strength and effectiveness.

Another study which refers to colour is that of Milotic (2003) who mentions in his article that when a colour is combined with the suitable scent which contributes to its recognition, as it gives an indication of what the soap will smell like. There is the case of Colgate Palmolive which launched a new line of soaps, changing their ingredients but maintaining their colour. So, for instance a white soap had the scent of chamomile, while a peach coloured soap had the scent of almond. This disagreement between the colour and the scent had as result a dramatic reduction in the share of the market of the specific brand. 2.6.4. The influence of colour within the shop Colour is one of the atmospheric elements which are widely used to create a pleasant environment and to influence customer behaviour. With the use of the appropriate colours retailers dont only aim to draw the attention of the customers but also to attract customers into the shop enhancing their shopping mood. The influence and the effectiveness of certain colours may differ among different shops, individuals and circumstances. Research concerning the influence of colours on the perception of a place showed that cool colours make a room seem larger and increase the sense of spaciousness. On the contrary, the existence of warm colours on the walls of a room, make it look smaller, while offering intense visual stimuli and high stimulation. The big super-market chain stores pay attention to the correct selection of colours so as for the customer to feel comfortable and calm (Siomkos, 2002). The warm feeling must be won from the moment the customer enters the shop. In general pastel, clean colours, that are considered to be relaxing by the customer. In special sections, it is common practice to use specific colours, like blue in the fishmongers section, white in the frozen foods section, yellow or ochre in the bakery and green in the produce section. In the U.S.A. there is a chain of shops that make pastries called Mrs Fielos. They owe much of their success to the unusual red colour that they used for decorating their packaging. This was quite risky, as brown is the colour that has been traditionally associated with chocolates and pastries. Finally, due to the fact that most purchases of pastries are made spontaneously by young women, they were attracted by the elegant and original decoration. In addition, American psychologists found that pink, orange and in general the warm pastel colours increase ones appetite. One of the most interesting findings of the laboratory experiment is that of Bellizzi, Crowley and Hasty (1983) which was the realization that independently of the individual colour preferences, people are usually attracted more by warm colours, but they think that an environment like that is not that pleasant. In this specific experiment the subjects had the tendency of staying closer to the red and yellow rather than the blue or green ones. However they characterized the areas that had warm colours as less pleasant and more emotionally straining as compared to those which had the walls painted in cool colours. This oxymoron conclusion can be especially useful in designing retail shops. In that way warm colours can be used in shop windows and external walls of the shops so as to attract the customer to enter the shop. An alternative solution is to decorate the shop window

with products of the same colour, something that will attract the consumers attention. In addition the stimulating properties of red and other warm colours can be useful in shops that have a substantial percentage of non-planned purchases. A customer in a bright, multicoloured environment is most likely to feel the urge to buy something. On the other hand it is unlikely for a customer who is in a dark and relaxing environment to make such purchases. On the other hand, consumers who buy expensive long lasting goods (electrical appliances, furniture) are less likely to make a hasty, impulsive purchase. In these cases, the use of cool colours is recommended, such as blue, which creates a relaxing atmosphere. Consequently, the customer has the opportunity to process the different information that will assist him in making the purchasing decision. As it can be understood, the use of bright colours would have the opposite result: reduction in the time the customer spends in the shop and postponement of purchase. However, the retailer could use such colours in the entrance of the shop so as to attract more customers. Furthermore, the subjects who participated in the study characterized the products which they encountered in shops with warm colours as more modern, but this fact could be due to the trends of the times. It was pointed out that the colours didnt seem to influence the perception of the consumers concerning the price or the quality of the products. Similar conclusions were reached in research carried out by Babin, Hardesty and Suter (2003). The consumers showed greater preference to the interior of shops with cool colours, while they seemed to have higher purchasing intentions in a shop that was painted blue rather than in a shop painted orange. In fact, the orange painted environment got the lowest assessments as far as enthusiasm is concerned, the perceived prices of the products, the desire to repeat the visit to the shop and the expression of intention to buy. However, this negative response of the consumers to the orange colour can be limited if the shop has lighting that is not bright. The opposite holds true in the case of blue: customers have a positive response to its combination with bright lighting. Furthermore research proved that the different combinations of colour and lighting change the cognitive representation of the shop influencing the perception of the customers regarding the price that the products should have, the price fairness. So the consumers regarded the prices as less fair in the case of the bright lit orange shop. This occurs because the bright lights combined with the orange colour remind us of a discount shop or an offprice store, so a high price is not expected. On the other hand, the existence of dim lighting in the same chromatic environment contributes to the assessment of the prices as being more fair. Consumers have a positive disposition towards the prices of a shop that has blue in its interior. Finally, Middlestadt (1990), carried out an experiment with 84 students, and reached the conclusion that the background colour has an influence on the consumers behaviour concerning the purchase of a product. He observed that the university students of the sample saw a blue pen on a blue background. This lead Middlestat to support that the colour influenced the beliefs of the subjects that participated concerning the purchase of the pen: those who saw the pen on a black background passionately believed that they were going to purchase an object which was elegant and unique.

3. METHODOLOGY OF RESEARCH 3.1 THE AIM OF THE RESEARCH The main aim of this research was to investigate the influence of colour on the purchasing behaviour of the consumers in cosmetics shops. Specifically, the research focused on the colour of the retail displays of the cosmetics which belong to the premium brands as well as the packaging of the perfumes and colognes. Thus the following research aims came to the forefront: The study of the chromatic preferences of the consumers in cosmetics shops. The investigation of the emotions and the responses, that various colours of the retail displays provoke in the cosmetics customers. The investigation of the way in which the different colours of the packaging of perfumes influence the image that the consumer forms regarding this product.

The cosmetics shops are a particularly attractive place for the realization of this research. This is not only due to the products that are offered but also to the purchasing motives of the consumers that visit them. It is a well-known fact that cosmetics have very slight differences from one another as far as their properties are concerned and the results that they promise their customers. So the search for the competitive advantage has turned to different sources, the packaging and the presentation of the products in the shop. It is worth mentioning that a big percentage of the decisions concerning the purchase of cosmetics takes place in the shop, and this fact alone makes it imperative to create the appropriate atmosphere as well as use the retail displays and other visual stimuli in the proper way. It is a well-known fact that the consumers who frequent these shops dont have the intention to buy anything but just to browse and have a good time. We call these consumers recreational shoppers. Many of these outings are likely to end up with the realization of impulsive purchases. In fact, several studies have shown that the category of cosmetics is characterized by a high percentage of non-planned purchases (Cobb &Hoyer, 1986). In a cosmetics shop the customer is found in a constant interaction with his environment (Phillips, 1993). Consequently, the environmental factors one of the most important ones is the colour have an impact on the recognition and serve as reminders of the consumer needs and guide him in the selection of the products that he or she will puchase. 3.2 STATEMENT OF RESEARCH HYPOTHESES Based on the review of older relative research and the aims that we set above, we were driven to the statement of the following hypotheses: H1: Different colours provoke different emotions in consumers. H2: Colour is associated with the length of time that the consumer spends in the shop. H3: Colour influences the purchasing intentions of the consumers.

H4: The colour of the packaging of the product connects the product with certain properties and values. H5:The colour of the packaging of a product is related to the price as the consumer perceives the product. H6: The colour of the packaging of the product is related to the target segment of the population that it is aimed at. Apart from the examination of these particular hypotheses, the research examines the purchasing habits, the colour preferences and the demographic profile of the consumers who visit cosmetics shops. 3.3 SELECTION OF SAMPLE The population segment that concerned this research were all the consumers who visit specialized cosmetics shops to make their purchases. The sample was limited to 130 women, aged 18-49 years old, who visited the Omonoia Hondos Center during the time period 10/7 10/9. This is an easy sample to deal with, meaning that it consists of the people who were willing to participate in the research. The limitation of the sample population to women is due to the fact that women are more familiar with the particular category of products and because of the frequency of their visits to exclusive cosmetics shops. Women buy cosmetics to cover their biological needs but also their psychological needs. It has been proven that women consumers who are related to a certain product may make a spontaneous purchase due to the strong emotions they feel when they are in a place where this product is offered (Jones et al., 2003). Thus the female market and the factors that influence their purchasing decisions attract the interest of the owners of cosmetics shops. The vast range of ages of the sample facilitates the breakdown of subcategories for the study of the influence of colour in relation to the demographic characteristics of the consumers. 3.4 COLLECTION OF DATA This primary quantitative research was carried out with the use of a survey. The method that was used for the collection of data was structured and direct, meaning that the questions and answers were standardized to ensure the easy completion and analysis of the data. Also the aim of the research was made known to the participants. The completion of the survey was made with the unplanned personal interview, pointing out that there is no right or wrong answer, but that the opinions and preferences of the interviewees are being investigated. The presence of the researcher was considered to be necessary, due to the use of visual images and the existence of certain complex questions. In this way, the interviewees adjusted faster to the nature of the research and the completion of the survey was less tiring and less time-consuming.

The researcher approached women, as they were exiting Hondos Center in Omonoia, and after acquiring their consent for their participation in the survey, he showed them some images and wrote down their replies to the relevant questions. 3.5 DESIGNING THE SURVEY The survey was designed in such a way so as to be clear, acceptable, functional and short. It was divided into four topic units. The first unit introduces the interviewee to the topic of the survey, investigating the purchasing habits of the consumers as far as cosmetic products are concerned. It includes simple questions in multiple choice form, in order not to tire out the interviewee right from the beginning and with the aim to attract his attention. The unit starts with a screening question. If the answer seems self-evident the question is there to exclude from the sample the customers who visited the shop for some other reason (exchange a gift, to visit a different department) and not to purchase cosmetics. The second unit deals with the issue of colour in the shop. It is accompanied by four photos, which depict different areas in a cosmetics department; while in each one different colours dominate (one out of the four areas is neutral regarding the colour/ colourless). Its aim is to measure the preferences as well as the emotions and the expression of purchasing intention of the consumer according to the color of each place. The measurement of preferences is done with a rating scale while for the measurement of the emotions a scale of significant differential. It must be noted that in this last scale the negative words or phrases are sometimes placed on the left side of the scale and others on the right side of the scale. This is done to avoid the case of an interviewee who always makes a mark on the right end or the left end, without reading the description of the words or phrases. The third unit studies the influence of colour on the positioning of a product in the consumers brain. It consists of five photos of perfumes (their brand names were not revealed) and each one of them is a different colour. More specifically, the image that each consumer forms for each perfume, the perceived price that he feels the product should have and the target market population segment that the product is aimed at, are all under investigation. For this purpose multiple choice, ranking and matching questions are used. Finally, the fourth unit gathers the demographic details of the interviewees. In order to check how clear, concise and functional the survey was, there was a pilot test asking 10 women questions whose characteristics matched the required demographic features of the sample. The result of the pilot test led to marginal alteration of certain questions. 4. ANALYSIS SURVEY RESULTS The analysis of the primary elements of the survey was made with the use of the statistics analysis program SPSS (Statistical Package for Social Sciences). It must be noted that the surveys didnt contain missing values due to the presence of the researcher. 4.1. THE COSMETICS MARKET

Before moving on to the description of the purchasing habits of consumers, it would be useful to present the demographic features of the women who participated in the survey. The women who visit specialized cosmetics shops in order to buy cosmetic products cover all the age groups between 18-49 years old; they have primarily middle and higher education (81.5%) and their average monthly income does not surpass , in the majority (72.3%), 1000 euro. (In the attachments there are relative charts which analytically present the demographic features of the sample). As far as their purchasing habits are concerned, it seems that one visit per month is adequate for making their purchases, since about 47% of the sample visit the cosmetics shop less than once a month, 41.5% visit it once or twice per month, while only one interviewee replied that she visits the shop more than four times a month. It is worth mentioning that neither age nor monthly income seem to influence the frequency of purchasing cosmetics (p>0.05). Another interesting issue is that of brand loyalty. According to the findings of the research, the majority of the buyers (54. 6) replied that they preferred certain brands, but sometimes they buy others. In fact it turned out that the degree of their loyalty is significantly influenced by the age (x2=41.408, p = 0.000 < 0.05) and education (x2 = 17.234, p = 0.002 < 0.05) of the interviewees. In other words women who are older and have a higher level of education claim that they are more loyal to certain cosmetics brands compared to younger women and those who only have a high-school diploma. Chart 4.1-1 Brand Loyalty according to age 18-25 I always buy one or two brands I have certain preferences but I buy other brands too I have no brand preferences 3 26-33 6 34-41 17 42-49 12

27

27

13

11

Finally, the research showed that the average expenditure for the purchase of cosmetics is kept low (59.2%) while only 3.8% of the sample spends 151-300 euro per month on cosmetics. As one would expect, the amount of money that a woman is willing to spend on cosmetics depends on how frequently she visits a cosmetics shop (x2 = 18.809, p = 0.001 < 0.05) but it also depends on her income (x2 = 21.244, p = 0.002 < 0.05) and her age (x2 = 15.930, p = 0.014 < 0.05). Specifically the lowest expenditure for the purchase of cosmetics is made by women aged 18-25, while the ages of 26 -33 and 34-41 seem to spend more on cosmetics. After the age of 42, women start to reduce the expenditure for cosmetics (Graph 4.1-1). Also as it is understood, the amount of the expenditure for the purchase of cosmetics increases directly related to the frequency of purchases and the income of the consumers.

Graph 4.1 -1 Average expenditure for cosmetics per age.

4.2 THE INFLUENCE OF COLOUR IN THE SHOP By examining the colour preferences of customers in a shop we realize that there are four alternatives that the interviewees have to choose from. What is remarkable is that the photo with the neutral colours came first in the consumers preferences: 32.3% of the sample said that they would visit this area first. Whereas the least preferable area is the one where the colour red is dominant, since only 12.3% of women would first visit this area and 63% would rank it in the two last choices. In the following graph, the ranking of the photos can be seen (note that the lowest average ranking order for each picture has the highest preference):

Graph 4.2-1 Bar graph of the average ranking of the four photos

What is remarkable is that the order of ranking of the four photos didnt seem to be related to the age of the female sample (Kendalls Tau-b Coefficient =0). On the contrary, an important negative correlation between the preference of the area and the degree of arousal and pleasure that it provoked in the interviewees of the sample. Attention must be paid to the interaction between arousal and pleasure. In the following chart the correlation coefficients of Kendall Tau-b for each pair of photo and the relative emotion: Chart 4.2-1 Kendalls Tau-b Correlation Coefficients

PHOTO A PHOTO B PHOTO C PHOTO D

Arousal -0.489 -0.452 -0.376 -0.496

Pleasure -0.418 -0.374 -0.431 -0.496

In continuation, it would be useful to see the mean value of excitement/ arousal, relaxation, pleasure, tendency to prolong ones stay in the shop, desire for trying out and buying products in each of the areas with different colours.

Chart 4.2-2 Mean Value of variables A 3.24 3.42 3.52 3,24 3.57 3.36 B 3.56 3.63 3.86 3.57 3.82 3.72 C 3.28 2.78 3.37 2.94 3.44 3.28 D 3.62 3.44 3.62 3.49 3.74 3.53

Excitement/arousal Relaxation Pleasure Tendency to prolong time in shop Desire to try out products Desire to make purchases

As we can observe the highest mean value in all variables, except for excitement/arousal, is present in the neutral area, which accumulates the highest percentages of preference. The colour red has the lowest mean value of relaxation and at the same time the largest tendency to reduce the time spent in this area. On the contrary, green and light blue greatly contribute to the relaxation and the creation of pleasure in the consumer. It must be pointed out that the levels of arousal/excitement that correspond to the green colour are the lowest, and this fact limits the tendency for trying out products or making purchases.