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Social cues in the store environment and their impact on store image
Haiyan Hu
Department of Business Administration, Utah State University, Logan, Utah, USA, and

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Cynthia R. Jasper
Department of Consumer Science, University of Wisconsin Madison, Madison, Wisconsin, USA
Abstract
Purpose The purpose of this study is to examine the roles that social cues play in affecting patronage behavior and how consumer susceptibility to interpersonal inuence would moderate the inuence of social cues on store image. Design/methodology/approach A two (high vs low socially-oriented in-store graphics) by two (high vs low personalized customer service) between subject experimental design was conducted to achieve the research objective. A total of 193 surveys were used for data analysis. Findings Consumers had a more favorable attitude toward merchandise and service quality and felt more aroused or pleased with a store where more social cues were present. They also had a more favorable perception of store image when high-personalized service was provided. Consumers perceived that they would be more likely to shop in a store that had more in-store displays of graphics with social meaning. Consumer susceptibility to informational inuence (SII) played a moderating role in some cases. Practical implications Retail service needs to be reinvented to create excitement. Consumers may use social cues embedded in the store environment as an information source. Sales skills of staff and in-store graphics should be especially appealing to low-SII customer. Originality/value This study has added to the retail literature by demonstrating that the social cues in store environment can affect consumers perception of store image and patronage intention. It provides interesting insights on how retailers can use a socially meaningful environment as a source of competitive advantage. Keywords Consumer behaviour, Shopping, Customer satisfaction Paper type Research paper

Introduction This paper examines the social elements or cues that are often found in store environments and their effects on consumer perception of store image. Previous literature has examined the effects of store attributes on consumers store image formation (Baker et al., 1994; Darden and Babin, 1994; Lindquist, 1975; Manolis et al., 1994; Marks, 1976; Martineau, 1958; Mazursky and Jacoby, 1986; Yoo et al., 1998). These store attributes include physical cues that do not involve the people factor (merchandise quality, store atmosphere and so forth) as well as cues with social implications, such as customer service. However, the effects of social cues on store image has not been given sufcient attention. This is partly because stores have long been viewed strictly as a place for making transactions. Recent research has revealed

International Journal of Retail & Distribution Management Vol. 34 No. 1, 2006 pp. 25-48 q Emerald Group Publishing Limited 0959-0552 DOI 10.1108/09590550610642800

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that since the early years of modern retailing, stores have served not only as a place for purchasing goods, but also as a place for socializing (Skoll, 1999). A modern example can be found in the classic independent bookstore, which trades not just in books, but also in creating a community atmosphere. These retailers have found success by employing several mutually reinforcing techniques. First, and foremost, they carry books that are reective of their consumers tastes, concerns and values. Second, these bookstores stress personalized relations between employees and customers. (This is can be seen as countering the sense of depersonalization that some see as pervasive in much of American society.) Third, independent book stores may be more successful than chain stores in creating a vibe; an environment that is comfortable, unique in character, lled with displays of symbolic meaning that reverberate with its customers or community, and is thus inviting and attractive. Miller (1999, p. 397) noted that:
The book never disappears entirely, but can hover on the periphery of all the other activities that the bookstore offers. . . The bookstore experience sells the books.

Although large bookstore chains such as Barnes and Noble or Borders have also implemented strategies to turn themselves into social gathering places for locals (Lisanti, 1996), by and large it has not become the industrial norm to incorporate social cues in the store environment. This may be due to market saturation and intense price competition for consumer spending. Retailers such as discount chains and category specialists often focus on a cost containment approach, which places an emphasis on reducing investment and trimming operating costs (Berman and Evans, 2001). Some of the cost-cutting methods include using no-frill displays and xtures and promoting self-service. This reduces the involvement of salespeople in transactions, which potentially reduces the social atmosphere in the store environment. Cost cutting programs that pass the savings on to consumers may appeal to shoppers who seek the best value for their money. But for many consumers, value is not simply dened as the ratio of price versus utility. Experiential value, for instance, includes the dimensions of playfulness and aesthetic appeal (Mathwick et al., 2001). Furthermore, shopping is a socially visible behavior, frequently done while accompanied by friends or family members; that is to say, consumers seek to satisfy social needs when shopping (Evans et al., 1996; Jones, 1993). For example, when consumers feel lonely, social contacts made casually in retail stores have been shown to ll a social void (Rubenstein and Shaver, 1980). It is also known that consumers shop not only for personal reasons, but also for social motives. These social shopping motives include: . social experiences outside the home; . communication with others, especially those with similar interests; . peer group attraction reecting a desire to be with ones peer group or a reference group to which one aspires to belong; . status and authority; and . the pleasure of bargaining (Tauber, 1995). But creating a socially pleasant store environment can be both costly and time consuming. Some retailers are suspicious about whether such efforts would improve store image and, in turn, their bottom lines (Haeberle, 2001). Therefore, the questions

addressed here are: what roles do social cues play in affecting patronage behavior? How would consumer idiosyncrasies, such as susceptibility to interpersonal inuence, moderate the inuence of social cues on store image? Social cues and human behavior To understand the impact of social cues in the store environment and how they affect consumer perception of store image, we examined related research in other elds such as social psychology and organizational research. These elds have provided useful denitions and insights into the ways social cues may have an impact on the individuals evaluation of the environment and subsequent behaviors. The meaning of social cues may vary depending on the nature of the research. In some bodies of research, social cues have been referred to as social stimuli (Eagle et al., 1969; Rudin and Stagner, 1958), a designation that usually implies the opposite of physical stimuli (e.g. a social stimulus describing a person in a situation, instead of a physical stimulus describing a gure placed against differing backgrounds). Social cues have alternately been referred to as the social aspects of a situation, and as such are considered the opposite of task-related aspects. For example, when listening to a lecture, the speakers performance and the way the speaker interacts with the audience are viewed as social cues, whereas the quality of the lecture is viewed as a non-social cue (Oltman, 1986; Ruble and Nakamura, 1972). Psychologists have studied the effects of social information on peoples cooperative or competitive behavior. In one study, individuals were exposed to stories containing social information (i.e. those events caused by human agents) and stories containing non-social information (i.e. those events caused by natural forces). They found that individuals cooperative or competitive behaviors are signicantly affected by the stories containing social information but not affected by stories containing non-social information (Holloway et al., 1977). Psychological literature has also explored the individual differences in susceptibility to social cues or information. People who are more attentive or sensitive to social cues are referred to as eld dependent whereas those who are less sensitive are referred to as eld independent. In one study, children were asked to solve a puzzle, and social cues were manipulated through the experimenters repeatedly looking at and leaning very slightly toward the card containing the right answer. The number of times the children glanced at the experimenter during the puzzle was recorded. The results showed that eld-dependent children glanced more than the eld-independent children did (Ruble and Nakamura, 1972). Further research showed that eld-dependent children are more likely to be affected in their task performance by the social stimuli. For example, Konstadt and Forman (1965) studied the relationships between childrens test results and their reference to the human environment (i.e. comments made by the experimenter at certain intervals during a letter-cancellation test). They found that these children are more seriously affected in their performance when the examiner expressed disapproval or approval. Field-dependent people also showed better incidental memory for social words compared with both eld-independent people and their own memory for neutral words (Eagle et al., 1969). The impact of social cues was also examined in the eld of job design. Peoples perception of tasks used to be reckoned as a function of objective attributes of individuals jobs. But studies suggested that changes in social cues have a signicant effect on task perceptions and satisfaction (Grifn et al., 1987).

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In a consumer context, one study investigated the social cues from billboards for cigarettes and alcohol (Schooler et al., 1996). Researchers found that: . social cues, or scenes containing people, are likely to appear in the alcohol and cigarette billboards; . the models used in the alcohol and cigarette billboards are likely to be similar to its target market; . the alcohol and cigarette billboards are likely to use social rewards, which include romance, sociability, active lifestyles, vacationing or adventure; and . models appearing on the alcohol and cigarette billboards are likely to be attractive. The study further argued that people can learn or adopt behaviors when the social rewards of the behaviors were illustrated and that based on the dual processing models of persuasion, social cues can be viewed as peripheral cues that provide social inuence to support product use. Another study corroborated this point of view in research on cigarette smoking (Surawy et al., 1985). Subjects were exposed to two 30-minute videos, one with clips of people smoking and the other one not. The number of cigarettes smoked by the subjects, the latency to taking the rst cigarette, smoking intensity and puffs per minute were measured. The results demonstrated that when watching others smoking in the video clips, subjects smoked signicantly more cigarettes, lit up earlier, and puffed faster. Social cues in a store environment We believe that store environment is a socially constructed reality composed of both physical and social elements, and that the perception of a store can be based on both physical and social cues represented schematically in the consumers mind. No research has yet systematically analyzed social cues in a store environment. One study suggested that social cues in the store environment can include:
. . . demographic and lifestyle characteristics of the clientele, patterns of exhibited and expected social interactions among actors, such as customers, waiters, and hostesses (Akhter et al., 1987, p. 68).

But another study posited that in a consumer context, social cues usually convey these attributes of social meaning: . interpersonal attraction in the form of similarity and attractiveness; . explicit pronouncements of the relative appropriateness of the consumption of certain products or services made by important referents or aspiration groups; . the structure of social rewards and sanctions within such groups; and . the processes by which the person forms impressions of other individuals traits and personalities (Bearden and Rose, 1990). In a retail environment, social meaning is usually conveyed through visual merchandising. Visual merchandising involves a number of highly technical and artistic elements, such as color, texture, lighting, mannequins, xture, graphics, signage and so on (Pegler, 1998). Furthermore:

. . . the visual merchandiser is not selling any one piece of merchandise, but rather the idea that any purchase from that store will guarantee social success and the stamp of the right taste level (Pegler, 1998, p. 4).

Thus there is a consensus that social cues in the store environment should include person-to-person interactions as well as physical elements in the store environment that convey social meaning. So the question remains: will shoppers be affected by social cues embedded in the store environment? Given the large number of social cues that may be found in the store environment and the daunting task of examining each social cues effect on store image, we focused on two types of social cues that are common in retail environment: the interaction between customers and salespeople, and in-store graphics. Several studies have examined the effects of environmental elements such as color, background music, and scent on store evaluation and patron behavior (Bellizzi et al., 1983; Bellizzi and Hite, 1992; Bruner, 1990; Milliman, 1982; Spangenberg et al., 1996). Yet no research has examined in-store graphics and their role in communicating social information. This lack of research is notable given the fact that graphics are widely used in retail stores across the country and are considered an important way of presenting products integrated with lifestyles (Bell and Ternus, 2002; Pegler, 1998). Personalized service The central focus of a store is the point of sale. The sales transaction that occurs here the exchange between salesperson and customer is the dening social moment in a stores existence. The quality of this social encounter is determined by how well a salesperson can interpret a customers needs and interact in a congenial manner. An enhanced interaction between the sales associate and customer is referred to as personalization of service. Personalization is characterized by an employees politeness and courtesy, attempts to get to know customers as individuals, and engagement in friendly conversation (Mittal and Lassar, 1996). Mittal and Lassar (1996) found that personalization signicantly inuences customer evaluations of service quality; and that consumers seek familiar, friendly service providers and retail salespeople. However, with the extensive application of automated information technology systems in todays retail industry (e.g. automatic gift registry and automated teller machines), depersonalization of retail transactions is increasing. Retail literature shows that depersonalization of retail transactions can signicantly affect the shopping experience. Specically, many consumers regard casual conversation or relationships with salespeople in stores as an important source of social contact. Forman and Sriram (1991) suggested that lonely consumers in particular, are sensitive to the depersonalization of the retail environment and are less likely to experience a satisfactory shopping experience in a depersonalized service environment. Previous studies have operationalized the social factors of the store environment in terms of: the number of salespeople present (three salespeople for a prestigious image store and one salesperson for a discount image store); whether they greeted customers or not (yes for a prestigious image store and no for a discount image store); and how they dressed (wearing aprons for a prestigious image store and no aprons for a discount image store) (Baker et al., 1994). However, these characterizations do not involve the interactions between salespeople and their customers; this limitation may hinder a proper examination of the effects of service quality on the perception of store image.

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In-store graphics with social meaning A market survey recently showed that 26 percent of consumers are often enticed by window displays to make a purchase; 15 percent of consumers use seasonal product displays (e.g. Christmas, Valentines Day) to reach purchase decisions (Caine, 2003). Much as billboards of cigarettes and alcohol use social cues to create a perception of social rewards, in-store graphics contain social cues which convey such a compelling message that the consumer will feel tantalized enough to step into a store and make a purchase (Bell and Ternus, 2002; Pegler, 1998). Both meaning movement theory and social inuence theory may be utilized to help understand how social meaning embedded in visual materials inuence consumer perceptions. Meaning movement theory suggests that socio-cultural meaning is drawn from the culturally constituted world and then transferred to consumer goods via advertising devices such as in-store graphics (McCracken, 1986, 1989). Then the social meaning is extracted from the objects either through a consumer product or through a physical setting like a retail store. Finally, the meaning is transferred to an individual consumer through rituals such as exchange (i.e. meaning is transferred in the exchange of goods, such as gift-giving, whereby the meaning of a gift is transferred from the giver to the receiver), possessing (time spent cleaning, displaying, showing off possessions; e.g. claiming the possession of a house with a housewarming party), grooming (i.e. a consumer draws meaning out of his/her possession repeatedly, such as putting on make-up before going out for dinner), and divestment (i.e. removing the meaning from a product, such as washing all clothes before donating to charity) (McCracken, 1986, 1989). Social inuence theory suggests that a consumer may be more likely to adopt a product because it was promoted by another, perhaps prominent, certainly idealized, model person. Consumer identication with the model i.e. the models inuence in an in-store display would be seen as a key element to establishing patronage intentions. Social inuence theory would posit that the values promoted in the display are congruent with the shoppers own; it would also support the contention that the consumer expects social rewards. These rewards could come in the form of recognition from peers and/or family. Take, for instance, a typical womens clothing department where posters might show a condently smiling young woman wearing a well-tailored suit, working on a computer while talking on the phone. The poster presents shoppers, especially young women, with the kind of condence and professionalism they idealize. These shoppers may attach professionalism and condence projected by the model to the suit, and thus be persuaded to try it on and perhaps to purchase it. To take the applicability of the theory a step further, it has also been used to explain the effectiveness of advertisements using endorsers who also often appear in in-store graphics (Daneshvary and Schwer, 2000). Consumer susceptibility to interpersonal inuence Bearden et al. (1989) developed a 12-item measurement scale to assess consumer susceptibility to interpersonal inuence. The scale describes two types of interpersonal inuence, normative inuence and informational inuence. Normative inuence is dened as the tendency to conform to the expectations of others (Bearden et al., 1989, p. 474). Under normative inuence, an individual either adopts a behavior or an opinion because of the belief that the adoption will enhance the individuals self-concept or

complies with others with the expectation of awards. Informational inuence is dened as the tendency to accept information from others as evidence about reality (Bearden et al., 1989, p. 474). Under informational inuence, an individuals behavior or attitude is affected by the information received from experts or by observations of others behavior. The 12-item scales validation process yielded a two-factor structure that is consistent with the two types of interpersonal inuence. A later study further corroborates the reliability and validity of the scale (Schroeder, 1996). It also demonstrated that normative inuence is positively related to self-consciousness and social anxiety, but negatively related to individuation and self-understanding. Informational inuence was not correlated to any of these measures. Researchers have investigated how these individual idiosyncrasies affect consumer decision-making and market behavior. For example, when making decisions about visiting a ne restaurant, susceptibility to spousal inuence is an important determinant in a consumers decision-making process (Lalwani, 2002). Research has also showed variations of susceptibility to interpersonal inuences across different consumer groups. For example, Chinese immigrants were shown to be more susceptible to interpersonal inuence than Anglo-Americans (DRozario and Choudhury, 2000), and smokers are less susceptible to interpersonal inuence than non-smokers (Kropp et al., 1999). As we argued earlier, the store environment is embedded with social cues that may inuence consumer behavior or attitude. It seems plausible that consumer susceptibility to the interpersonal inuence would play a role in moderating the relationship between social cues, consumers perception of store image and shopping behavior. It would also be interesting to discover which type of interpersonal inuences, normative or informational, is more salient. Social cues and perception of store image In this study, we investigate the effects of social cues on consumers perception of store image. Two schools of thoughts exist regarding the conceptualization of store image the attribute-based view and the holistic view. The attribute-based approach considers store image to consist of both cognition and affect (Martineau, 1958). The cognitive component consists of a number of functional qualities represented by salient store attributes; merchandise quality and service quality have been the most examined attributes concerning effects on store image (Lindquist, 1975). The affect component represents the feelings that shoppers hold for a store (Darden and Babin, 1994). Consumer affect toward a store is mainly described by two dimensions: pleasure-displeasure (the degree to which the person feels good in the environment) and arousal-nonarousal (the extent to which a person feels excited or stimulated) (Baker et al., 1992, p. 449). The holistic view denes store image as the total impression a store makes on the minds of its customers. Typically, a semantic differential scale such as good/bad, favorable/unfavorable, or like/dislike is used (Yoo et al., 1998). We have attempted to integrate the two conceptualizations of store image in this study. Namely, we have investigated how personalized customer service and in-store graphics affect consumers: . cognitive evaluation of merchandise and service quality; . affective responses in terms of pleasure and arousal;

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global perception of store image; and subsequent patronage intention.

Based upon the theories reviewed here as they apply to social cues on human behavior, we formally hypothesize that:

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H1. Consumers will have a more favorable attitude toward merchandise quality when more social cues are present in a store environment than when they are not. H2. Consumers will perceive higher service quality when more social cues are present in a store environment than when they are not. H3. Consumers will feel higher levels of arousal or pleasure when more social cues are present in a store environment than when they are not. H4. Consumers will have a more favorable store image when more social cues are present in a store environment than when they are not. H5. Consumers will exhibit a greater degree of patronage intention when exposed to a store environment with more social cues than when exposed to a store environment with fewer social cues. H6. Consumers susceptibility to normative inuence (SNI) or informational inuence may moderate the relationships between social cues and their attitude toward merchandise quality (H6a), between social cues and their attitude toward service quality (H6b), between social cues and their feeling of arousal or pleasure (H6c), between social cues and their overall impression of the store (H6d ), and between social cues and their patronage intentions (H6e). Research methods The study utilized a loose-leaf photo album to simulate a department store (Mazursky and Jacoby, 1986). The simulation contains both verbal and pictorial information. Respondents were told that a retailer is considering opening a department store in the area and the retailer was interested in learning how consumers will evaluate the new store. They were further told that to save money and time, some of the major features of the new store would be presented in the form of photos and verbal descriptions in the photo album. Finally, respondents were instructed to go through the photo album before lling out questionnaires. The albums design was based on consultations with retailing professionals and researchers. The album was to be opened at its central page where all the information available was listed in a table of contents (simulating the store oor plan). Corresponding tabs appeared alongside the outer edge of each page where verbal information or photos were displayed. To make the album experience as similar as possible to a real shopping trip, once the respondents began from the central page, they could continue to any page, opening pages to the left and right of the center, skipping pages altogether for the departments that they were not interested in, etc. The vignette describing the levels of personalized service was attached to the front of the album and the participants were told that they must read it to be able to answer the questions on the questionnaire. About 200 photos were taken from several department stores in the

US. The photos covered 16 departments in a typical department store including: jewelry, cosmetics, handbag and accessories, mens formal wear, mens casual wear, misses, women, jeans, womens intimate wear, hosiery, juniors, girls, boys, luggage, shoes, bed and bath. Various retail formats exist in the retail industry today. Generally, department stores are located between specialty store and discount store on the continuum ranging from high to low social-oriented store environment. In addition, different department stores vary in the levels of social cues existing in their store environment, which supports the manipulation of high vs low graphic display and high vs low personalized service in our study. That was why we chose to conduct the research in a department store format. A two (high vs low socially-oriented in-store graphics) by two (high vs low personalized customer service) between-subject experimental design was conducted to achieve the research objective. Therefore, four different types of photo albums were developed: (1) Pictures of scenes with a high number of in-store graphics and a vignette depicting highly personalized customer service; (2) Pictures of scenes with a high number of in-store graphics and a vignette depicting low levels of personalized customer service; (3) Pictures of scenes with few in-store graphics and a vignette depicting high levels of personalized customer service; and (4) Pictures of scenes with few in-store graphics and a vignette depicting low levels of personalized customer service. Each respondent was randomly assigned to view only one of the four photo albums. Manipulations High vs low socially-oriented store displays. For the high socially-oriented store displays, photos of merchandise displayed along with graphics delivering various social images were included. For the low socially-oriented store displays, the photos were the same except that the social images were replaced with a department name. For example, in the high socially-oriented display conditions, the Bedding and Bath departments were decorated with posters which showed either: a half-naked man sitting comfortably by the tub, a young couple holding a little baby surrounded by many colorful towels, or a young mother holding a smiling baby wrapped in towels. In the low socially-oriented displays, everything was the same except that two of the posters described above were replaced with signs that read, Department of Bedding and Bath. This approach enabled us to create two contrasting conditions (high vs low socially-oriented displays), each with a similar information load. High vs low personalized customer service. To create a high vs low personalized customer service conditions vignettes were created to describe typical service encounters. These vignettes captured a customer and sales-associate transaction in progress. Since retailing is a people-oriented business that demands high levels of interaction, it was critical to identify the behavioral attributes that contribute to service satisfaction. Winsted (2000) examined two types of service transactions (in medical care environments and in restaurants) and found a set of both positive and negative behaviors common to these two completely different service situations. Some of the

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positive behaviors were incorporated in the high personalized service vignette, such as, was very attentive, was very available when needed, was very competent, talked with me, was very courteous to me, was helpful to me, seemed interested in me and my needs, listened to what I had to say, and worked to resolve any problems. On the other hand, some of the negative behaviors were incorporated in the low personalized service vignette, such as seemed to be interested in business only, seemed distracted, ignored me, or was indifferent. Therefore, the vignettes used in this study are a better and more accurate representation of a service encounter in process. The different degrees of personalization depicted in these two vignettes were also consistent with the discussion involving the different levels of personalization in retail services (Mittal and Lassar, 1996). The vignette of high personalized customer service was created as follows:
Last Sunday, I went to Kellys Department Store to buy a dress shirt. As soon as I walked into the department, a sales associate greeted me with a smile and offered assistance. After I described what I was looking for, she quickly showed me several dress shirts in varying colors, fabrics, and styles. She listened very attentively while I told her about my color preferences, described occasions where I might wear such a shirt, and so on, and suggested several shirts. Each time I tried a shirt on, she offered her opinion as to whether the shirt suited me. I decided on one shirt and she told me how to properly care for it and explained the stores return policy. After carefully folding the shirt and placing it in a bag along with the receipt, she offered a Thank you, I hope you like the shirt as she handed the bag to me. . .

The scenario of a low personalized customer service is created as follows:

Last Sunday, I went to Kellys Department Store to buy a dress shirt. I walked into the department, and a sale associate greeted me with a smile. I looked around and studied the colors, fabrics and styles of the shirts while the sales associate was shelving merchandise at the other side of the department. I found one that seemed to t me and took it to the checkout counter. After waiting for a while, the sales associate came. She made the transaction, put the shirt and receipt in a bag and said good-bye to me. . .

Pretests were conducted to make sure that two levels of socially-oriented graphic displays and two levels of personalized customer services were perceived differently as they were intended to. Measurement In this study, the dependent variables included consumers cognitive and affective responses toward the store environment, their overall perception of store image, and their patronage intention. The independent variables included amount of graphic displays and levels of personalized customer service. The moderators include consumer SNI and consumer susceptibility to informational inuence (SII). Two covariates, consumer shopping expertise and consumer loneliness, were also considered. The literature provides strong evidence that novice and expert consumers tend to engage in different types of information searches (Alba and Hutchinson, 1987). Novices are more likely to sample the opinions of others and to include nonfunctional attributes such as a salespersons suggestion or personality. On the other hand, experts will put more weight on core cues such as functional product information. In this case, social cues such as the personality of sales associates, and the interactions between customers and salespeople are not directly related to

merchandise quality. These aspects can be regarded as nonfunctional or peripheral cues, which are more likely to be used by novices than by experts to judge the merchandise quality and store image. Thus, varying shopping expertise should be controlled when examining the effect of a stores social cues on consumer perception of store image. The other covariate is consumer loneliness. As reviewed previously, lonely consumers are more likely to acknowledge the depersonalization of a retailing environment (Forman and Sriram, 1991). The same study also suggested that lonely consumers tend to evaluate store depersonalization more negatively and thus feel less satised with the shopping experience than non-lonely consumers. Therefore, it is logical to infer that holding all other conditions constant, lonely consumers may be more sensitive to social cues simply because they have a greater need for social interaction. As a result, they may rate the store, in terms of both cognitive and affective responses, signicantly lower than their non-lonely counterparts, even if the same levels of social cues are present for both groups. Therefore, consumer loneliness also needs to be controlled in this study. The measurement scales used in this study are summarized below and their levels of reliability are presented in Table I. Perception of merchandise quality. The measure of perceived merchandise quality was derived from Dodds et al. (1991), except that some of the wording required revision to t this study. This was a ve-item, summated rating scale with a reported reliability of 0.95 (Dodds et al., 1991). Perception of service quality. As stated previously, retail service incorporates both social and non-social content. To measure shoppers perception of store service quality, it was necessary to use a scale that covers both types of content. Therefore, a combined scale drawn from several different studies was employed to address both personnel and physical facilities in a store (Dickson and MacLachlan, 1990; Baker et al., 1994). The scale included three items dealing with interactions between sales associates and customers, three items dealing with physical facilities, and two items evaluating the general tone of service. The scale was in a seven-point Likert-type format, ranging from strongly disagree to strongly agree. Affect toward a store . As stated previously, pleasure-displeasure and arousal-nonarousal are two dimensions in the PAD paradigm that are most frequently used to measure consumers affective responses in a store environment (Baker et al., 1992; Darden and Babin, 1994; Dawson et al., 1990; Donovan et al., 1994; Sherman et al., 1997). Based on the pretest results, we used four items to measure pleasure and four items to measure arousal. Store image. In order to be consistent with the holistic view of store image, this study attempted to avoid using measures that assess the cognitive or affective characteristics of a store. Thus, a three-item, seven-point scale (good-bad, like-dislike, favorable-unfavorable) was used to measure the overall impression of a store (Yoo et al., 1998). The reported reliability was 0.93 (coefcient a). The social orientation of a store. No scale exists to measure the social orientation of a retail store. A measure was developed based on a review of the literature to assess the social environment of a store. The measure includes items assessing the degree to which the store helps consumers satisfy their social needs when shopping (Tauber, 1995), items measuring the amount of social information present in a store (Bearden

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Name of the measure Perception of merchandise quality The merchandise would be reliable The workmanship would be high The merchandise would be durable The merchandise would be dependable The merchandise would be of high quality Perception of service quality Customers would be treated well Employees would be willing to help customers Employees would give personal attention Employees would not be too busy to respond The store would offer high-quality service Returning purchase would be easy The store would have fast check-out Store affect: pleasure Happy/unhappy Pleased/annoyed Satised/unsatised Relaxed/bored Store affect: arousal Aroused/unaroused Frenzied/sluggish Stimulated/relaxed Excited/calm Overall perception of store image Good/bad Like/dislike Favorable/unfavorable Intention to shop I would shop I would be willing to buy I would recommend to my friends I would avoid shopping I would try this store rst I would feel comfortable shopping here Consumer shopping expertise Not knowledgeable/knowledgeable Not expert/expert Not trained/trained Not experienced/experienced Consumer loneliness I feel in tune with people around me No one really knows me well I can nd companionship when I want it People are around me, but not with me

Factor loadings 0.86 0.90 0.93 0.93 0.89

Reliability (coefcient a) 0.94

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0.92 0.88 0.91 0.90 0.79 0.91 0.73 0.71 0.86 0.84 0.89 0.87 0.74 0.78 0.68 0.67 0.87 0.83 0.97 0.98 0.97 0.97 0.91 0.94 0.93 0.92 0.71 0.72 0.81 0.92 0.88 0.91 0.90 0.90 0.70 0.67 0.73 0.73 0.78

Table I. Factor analysis results and reliabilities of the measurement scales

and Rose, 1990), and items measuring the extent to which the store helps shoppers form the social perception of self and others (Holloway et al., 1977; Michener and DeLamater, 1994). After several pretests, the nal version of the scale includes nine items, ranging from 1 strongly disagree to 7 strongly agree (Table II). The pretests

Finalized items 1. This store would provide me with social experiences outside the home (e.g. seeking new acquaintances, encountering friends) 2. This store would provide an opportunity for me to communicate with others having similar interests 3. This store would provide a meeting place where I may gather with my peers

Factor 1 Fsocial1

Factor 2 Fsocial2

Reliability 0.86 (0.77)

Social cues and their impact on store image 37

0.86 (0.88) 0.91 (0.82) 0.84 (0.71) 0.86 (0.79)

4. The store employees would show personal attention to me as a customer 0.86 (0.58) 5. The store environment provides explicit modeled examples of ways certain products may be used or worn 0.78 (0.86) 6. The store environment suggests the possible social rewards I may receive form purchasing certain products, such as feeling attractive and fashionable, being accepted by my peers, etc. 0.72 (0.82) 7. It is easy for me to picture my self or my family members using or wearing certain products 0.69 (0.65) 8. It is easy to form impressions about the customers in the store depicted in the album 0.69 (0.65) 9. It is easy to imagine myself shopping in the store depicted in the album 0.76 (0.54) Percentage of variance explained 49.13 (41.06) 17.74 (17.00) Initial eigenvalues 4.42 (3.70) 1.60 (1.53) Note: The numbers in the parenthesis are pretest results

Table II. Factor analysis of the social orientation of a store scale

indicate that social orientation of a store is a two-factor construct and that reliability is acceptable (coefcient a 0.79 for fsocial1 and coefcient a 0.77 for fsocial2). Consumer shopping expertise. No specic scale has been devised to measure consumer shopping expertise. Because the process of store image formation involves information seeking and usage, a person who is viewed as a very knowledgeable information source must have more shopping experience. Thus a ve-item, seven-point semantic differential scale was used to measure a consumers self-assessment of his/her knowledge and competency in shopping (Netemeyer and Bearden, 1992). The reported reliability was 0.91-0.94. Consumer loneliness. The loneliness scale was a four-item, ve-point, Likert-type scale (Forman and Sriram, 1991). It was reported to have an acceptable reliability with a coefcient a of 0.74-0.75 (Forman and Sriram, 1991). Studies also provided some evidence of the scales unidimensionality as well as its convergent and discriminant validities (Forman and Sriram, 1991). Consumer susceptibility to interpersonal inuence. As noted previously, a 12-item scale developed by Bearden et al. (1989) was used in this study. The reported reliability was 0.91-0.94. Demographics. Information such as age, gender, education level, employment status, and annual household income was recorded.

IJRDM 34,1

38

Data analysis results The data were collected from a convenience sample of female consumers from a Midwestern college town with a large public university. It is recognized that this convenience sample, given its demographic limitation, would place restrictions on the generalization of the results of this study to other geographic areas or to the general population. The participants included students recruited from several undergraduate classes in the university and women in the local community. Extra credit was offered in an undergraduate course as an incentive for students to participate in the study. Women were recruited from local churches, work places, local chapters of womens organizations, and the universitys family housing community. No monetary incentives were provided to these respondents. The women in the sample ranged from 19 to 73 years old. The majority of the respondents were single or never married (63.7 percent) and were either in college (53.4 percent) or possessed a college degree (33.2 percent). About two thirds of the respondents were employed full-time or part-time (66.8 percent). A total of 203 surveys were collected, 193 of which were determined as usable surveys. See Table III for sample statistics. The samples mean score of SNI is used as a cut-off point to distinguish high from low SNI for each respondent. The same procedure is used to separate high from low SII for each respondent. Therefore, all the hypotheses were tested with a two (high vs low socially-oriented display) by two (high vs low personalized customer service) by two (high vs low SNI) by two (high vs low SII) analysis of variance, except for H3 and H6c. Because two related affect dimensions (arousal and pleasure) were examined for store

Demographic variables Age (years) (mean 30.33, std. 12.05) 18-20 21-25 26-35 36-45 46-55 56-65 Over 65 Marital status Never married Married Divorced or separated Widowed Educational level High school Associate Bachelors Masters PhDs Professional Employment Full-time Half-time Not working

Female consumers (n 193) (percent) 11.2 44.1 16.5 14.3 12.3 0.5 1.6 63.7 25.4 6.7 4.1 53.4 13.5 19.2 11.4 1.6 1.0 23.3 43.5 33.2

Table III. Demographic characteristics of the sample

affect, a two (high vs low socially-oriented display) by two (high vs low personalized customer service) by two (high vs low SNI) by two (high vs low SII), analyses of multi-variance were conducted to test H3 and H6c (Baron and Kenny, 1986). Moderation can be demonstrated with the interactions between independent variables and moderators (Baron and Kenny, 1986). Manipulation check of the social orientation of a store The exploratory factor analysis using a principal component method revealed a two-factor structure of the scale. The rst factor (fsocial1, reliability coefcient a 0.86) included items related to social information and ease of forming social perception. The second factor (fsocial2, reliability coefcient a 0.86) included items that were derived from the social function of retailing (Table II). Cronbach a levels of above dimensions (above 0.70) suggested an acceptable reliability level for this preliminary result (Hair et al., 1995). The scale was further validated using conrmatory factor analysis. The two-factor structure was assessed by examining the modication indices generated from the conrmatory factor analysis. The result showed satisfactory t (x 2 32.13, p 0.057; RMSEA 0.053; GFI 0.96; CFI 0.99; n 193) (Hair et al., 1995). Two types of social cues were manipulated in this study: the number of socially-oriented graphics and the levels of personalized customer service. A two by two MANOVA showed that manipulations worked as expected. Respondents rated a store with a greater number of socially-oriented poster displays as more social, compared to a store with a lesser number of such displays (F (2,192) 16.576, p 0.000; F (1,192) 32.323, p 0.000 for fsocial1 and F (1,192) 10.662, p 0.001 for fsocial2). Respondents also rated high personalized service as more social than low personalized service (F (2,192) 3.822, p 0.024; F (1,192) 7.672, p 0.006 for fsocial1). No other signicant effects were found. Hypothesis test results Hypothesis testing results were summarized in Table IV. Neither of the covariates was signicant in the analyses, so they will not be discussed below. The test showed that social-oriented graphics (F (1,192) 10.376, p 0.002) and personalized service (F (1,192) 8.937, p 0.003) both had signicant main effects on perception of merchandise quality. Respondents reported a more favorable attitude toward merchandise quality when the store displayed more graphics with social meaning (Xhigh 5.208 vs Xlow 4.521). High-personalized customer service evoked a more favorable evaluation of merchandise quality (Xhigh 5.180 vs Xlow 4.549). Thus, H1 is supported. The test yielded two signicant main effects graphics (F (1,192) 6.424, p 0.012) and service (F (1,192) 21.992, p 0.000) on perception of service quality. Respondents reported a more favorable attitude toward service quality where more graphics with social meaning were displayed (Xhigh 5.071 vs Xlow 4.482). High-personalized customer service evoked a more favorable attitude toward service quality (Xhigh 5.316 vs Xlow 4.237). Thus H2 was supported. A two-way multi-variant analysis was conducted to examine store affect. Respondents felt more aroused (DX 0.590; F (1,183) 7.703, p 0.006) and more pleased (DX 0.495; F (1,183) 5.481, p 0.020) when more socially-oriented

Social cues and their impact on store image 39

IJRDM 34,1
Main effects Graphics Service SNI SII Two-way interactions Graphics service Graphics SNI Graphics SII Service SNI Service SII SNI SII Three-way interactions Graphics service SNI Graphics service SII Service SNI SII Graphics SNI SII Four-way interactions Graphics service SNI SII Covariates Loneliness Shopping expertise

Merchandise quality 10.376 * * * 8.937 * * * 0.852 2.345 0.375 1.721 4.808 * * 1.064 4.128 * * 1.545 0.990 0.315 2.825 4.345 * * 0.102 0.005 0.198

Service quality 6.424 * * 21.992 * * * 3.321 * 0.747 0.349 0.076 0.017 0.280 2.970 * 0.784 1.581 0.400 3.982 * * 3.530 * 0.023 0.056 0.001

Store affect Pleasure Arousal 7.703 * * * 4.846 * * 0.900 0.192 4.557 * * 0.180 0.558 1.643 7.380 * * * 0.477 2.323 0.012 2.006 0.028 1.832 0.104 0.111 5.481 * * 1.275 0.539 0.355 1.862 0.319 0.000 0.000 2.618 0.351 1.327 0.335 0.408 0.186 0.052 0.111 0.033

Store image 3.121 * 4.668 * * 0.014 0.144 6.440 * * 0.355 0.095 0.010 2.148 0.007 0.453 1.137 0.051 0.458 0.828 0.202 0.658

Intention to shop 2.696 7.385 * * * 2.105 0.000 5.108 * * 0.586 0.241 0.365 0.993 0.666 1.061 1.633 0.271 0.223 0.968 0.209 0.102

40

Table IV. Four-way ANOVA results of the effects of the social cues on store image

Notes: The numbers in the table are F-values; *p , 0.10; * *p , 0.05; * * *p , 0.01

graphics were displayed in the store environment. Because personalized service did not seem to affect respondents feelings about the store in terms of pleasure or arousal, H3 was only supported by one of the two social elements examined in this research socially-oriented graphics. The interaction between service and graphics was found to signicantly affect consumers overall perception of store image (F (1,191) 6.440, p 0.012). Specically, when more socially-oriented graphics were displayed in the store environment, respondents had a more favorable store image when the store also provided a high-personalized service (Xhigh 2.168 vs Xlow 3.397). This situation changed when fewer socially-oriented graphics were present (Xhigh 3.299 vs Xlow 3.201). Thus, H4 was conditionally supported. The interaction of graphics and service had signicant effects on consumers intention to patronize (F (1,193) 5.108, p 0.025). Specically, when more socially-oriented graphics were displayed in the store environment, respondents seemed more likely to shop in a store where a high-personalized service is also present (Xhigh 5.334 vs Xlow 4.124). However, in a store where fewer socially-oriented graphics were present, consumers intention to patronize does not vary much, regardless of the level of personalized service (Xhigh 4.381 vs Xlow 4.269). Thus, H5 was conditionally supported. The data analysis further revealed that consumer SII appears to moderate the effects of social cues on the perception of store image. Consumer SNI does not seem to

play a moderating role in any relationships that were examined. More interestingly, the direction of the moderating effect of the SII seemed contrary to our presumptions. A three-way interaction among levels of store graphics, levels of SII and levels of SNI has a signicant effect on perception of merchandise quality (F (1,192) 4.345, p 0.039). Specically, among consumers of low SNI, those of high SII seemed to be less affected by the high vs low amount of graphic displays than those of low SII (DXlow SII 0.436 vs DXhigh SII 0.385). Whereas among consumers of high SNI, consumers of high SII seemed almost indifferent to the levels of graphic displays (DXhigh SII 0.064) but responses from the consumers of low SII improved dramatically (DXlow SII 1.865 with Xhigh social display 5.995, Xlow social display 4.130). A three-way interaction among levels of personalized serve, levels of SII and levels of SNI was also found to be signicant on perception of service quality (F (1,192) 3.982, p 0.048). Specically, among consumers of low SNI, those of low SII seemed to be less affected by the high vs low personalized service than those of high SII (DXlow SII 0.897 vs DXhigh SII 1.024), which is consistent with our presumption. But among the consumers of high SNI, those of high SII seemed much less affected by the levels of service (DXhigh SII 0.346 with Xhigh service 5.158, Xlow service 4.812) than those of low SII (DXlow SII 2.057 with Xhigh service 6.019, Xlow service 3.962). SII also plays a moderating role in the relationship between levels of personalized service and consumer feeling of pleasure (F (1,183) 7.380, p 0.007). Specically, consumers of low SII seemed to be very pleased when service levels change from low to high (DXlow SII 1.031 with Xhigh service 2.635, Xlow service 3.666), whereas consumers of high SII felt a bit less pleased (DXhigh SII 0.104 with Xhigh service 3.295, Xlow service 3.191). No moderating effects of either SII or SNI were found on overall impression of the store or on patronage intention. Discussion and implications for retailers This study provided strong evidence that social cues in the store environment have a positive effect on consumers perception of store image. Two types of social cues, levels of personalized service and amount of social-oriented graphics display, plus the interplay between the two, were shown to affect consumers perception of store image. Data analysis also revealed the moderating role of consumer SII. Social interaction between salespeople and customers As discussed in the literature review, Baker et al. (1994) operationalized the social factors of a store environment in terms of: the number of salespeople present; whether they greeted customers or not; and how they dressed. This operationalization does not involve the interactions between salespeople and their customers. Because the number and dress of salespeople do not indicate how they actually serve a customers needs, one cannot infer service quality. The vignettes used in this study highlighted the process, or the behavioral dimension of salesperson-customer interactions. Therefore, it is not surprising that Baker et al.s operationalization of the salespeople factor had little impact on the service quality image. Mittal and Lassar (1996) corroborated the strong relationship between personalization of service and customers evaluation of service quality and potential patronage. But will high levels of service automatically evoke a feeling of pleasure and excitement? Our research suggests that this is not necessarily the case,

Social cues and their impact on store image 41

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42

given that cognition and emotion are two different mental constructs. There may still be something missing from the current retail service formula; something that could evoke pleasure and arouse the interest of a shopper and entice them to linger longer while they are in the store or to make them come back more often. Previous research has suggested that certain sales associate traits are critical to successful personalization of service: strong merchandise skills; a fashion sense (for a fashion retailer); and most importantly, the skills to accurately read customers and win them over. As a result, customers tend to become pleased with and committed to such a relationship (Beatty et al., 1996). However, Beatty et al.s study does not mention whether arousal is one of the outcomes derived from this relationship. So what is that dash of spice that can avor the retail service formula and thus evoke more excitement from customers? Some have suggested a little humor and exaggeration akin to that found on the theater stage (Harris et al., 2001). Retail excitement might require of salespeople an unleashing of their inner-thespian; i.e. letting employees individuality and creativity ow into the delivery of basic customer service. Improvisation on the sales oor may thus become integral to tailoring a stores lines to each customer (Harris et al., 2001). Customer participation can also contribute to an exciting retail service encounter. Live events or spontaneous happenings can attract in-store customers and provide opportunities to exchange comments or ideas and discuss concerns (Harris et al., 2001). Thus a social circle among shoppers can be instantaneously developed. This not only helps customers nd a solution to their immediate problem (e.g. learning how to redo the kitchen), but more importantly provides a social experience that is valued beyond simply acquiring merchandise (e.g. nding a friend who is also interested in a home improvement project). From the retailers perspective, the role of facilitating social exchange among customers may add to the liveliness of the store environment, ultimately enhancing the my kind of store image among shoppers. Japanese department stores have a tradition of giving workshops to housewives teaching ower arrangement and tea service (Sternquist, 1998). Housewives turn these workshops into social gatherings. American retailers have also been known for offering workshops as well from home depots do-it-yourself workshops to demonstrating cooking recipes at Williams and Sonoma to teaching basic rock climbing at REI. The success of these retail stores and the results of this study should further demonstrate the imperative for retailers to rene service and to exceed customer expectations. The baseline for sales staff performance is no longer just providing product information; it now includes creating interesting and fun social interactions. Retail service is becoming an art that includes making the shopping experience enjoyable. Eventually, a retailers task will go beyond merely training employees to follow rigid store rules or rote policies; teams of artists or actors could be employed to ply their creative skills in developing a personal rapport with each customer and in inviting customer participation in store events. (Beatty et al., 1996; Harris et al., 2001). The store environment as a source of social meaning In the past, store displays were mainly used for promotional purposes. But as consumers became more sophisticated, retailers have discovered new roles for effective displays: communicating product information and store image, assisting consumers in making purchase decisions, and creating an exciting shopping environment (Bell and

Ternus, 2002). This study provides evidence showing strong support for using visual information such as graphics in stores. In the store where more posters with social content were displayed, respondents generally perceived a higher merchandise and service quality. They also felt more interested in the store and they were pleased with the presence of such posters. Combined with high-personalized service, more displays with social meaning led to a more favorable store image. In fact, compared to some elements such as color, scent or music (all of which may evoke mixed feelings) graphics may be more explicit and less ambiguous in delivering a message. As we found in the results, interpersonal inuences affect some patrons more than others, but graphics do exert a subtle social inuence on most shoppers. Successful retailers are apparently on the right track with their widespread use of lifestyle reections graphics in their stores. Allowing consumers to mentally immerse themselves in a certain lifestyle, in the store itself, seems to work (Everage, 2003). For example, youth fashion stores promoting the idea of individual expression often use bold graphics with attractive teenagers to reinforce their youth-oriented image (Johansen-Berg, 2002). This may also explain why retailers often use graphics to educate customers in an unassuming manner (Everage, 2003). For example, in addition to upbeat music and a refreshing herbal scent, pharmacies often use graphics featuring healthy and attractive people to promote a wholesome image of the store and to encourage shoppers to live a better life with the purchase of a health-promoting product. The moderators: susceptibility to normative inuence; informational inuence Two types of consumer susceptibility to interpersonal inuence were investigated: SNI and SII. This studys tests revealed no moderating SNI effects; i.e. a consumers SNI. The main effects on consumer perception of store image and shopping intention were largely attributable to socially-oriented graphic displays and levels of personalized service (as well as the interaction between the two) and not to a consumers tendency is to conform to others expectations. An alternative interpretation may be that normative inuence is not the underlying mechanism of how or why the in-store lifestyle graphics or personalized services work as social cues. In other words, the two types of social cues examined in this study inuence shoppers attitude about the store, but not because consumers feel pressure to conform and not because they believe they will receive social rewards if they comply. The ndings infer (but are not conclusive) that consumers use social cues embedded in the store environment as an information source. This is partly conrmed by the moderating effect of SII revealed in our data analysis. However, contrary to our conceptual model, the study did not nd that high-SII patrons perception of store image was signicantly affected by social cues. In fact, the data showed the opposite. A plausible explanation would be that high-SII consumers may have done a thorough information search before visiting a store. The upshot: high-SII patrons purchase decisions are less likely to be affected by either store displays, or salespeople. Low-SII consumers responded differently. Because they are less likely to have received information from friends or family members, subtle messages conveyed through in-store displays, or advice from salespeople, were found to play signicant role in purchase intention. Retailers, therefore, must pay particular attention to the low-SII clientele. In-store marketing strategies should be tailored accordingly. Sales

Social cues and their impact on store image 43

IJRDM 34,1

skills of staff should be honed for the low-SII customer; and in-store graphics should be especially appealing to this group as well. Conclusions and directions for future research In the United States, brick-and-mortar retailers face several challenges. First, consumers are increasingly cocooning in their homes or are simply waiting for better incentives to shop. Second, brick-and-mortar retailers are faced with increasing competition from internet retailers. It has been estimated that 40 percent of all Americans have purchased via computer and spent about US$145 billion online in 2004 (San Francisco Chronicle, 2004). Internet buyers spent $23.2 billion during 2004 holiday season, which is about 25 percent more than a year before (Hajewski, 2005). Meanwhile, brick-and-mortar retailers have been developing various incentives to lure consumers into their stores. Many of these incentives, such as deep discounts, are not intended as long-term strategies; rather, they are merely stop-gap measures for increasing short-term sales or prot. Department stores in the US are especially vulnerable to the erce competitions and are shown to have lost market shares to other retail formats such as specialty stores and discount stores in product categories such as apparel, home electronics and furniture (Levy and Weitz, 2004). An important conclusion of our study is that there is another way to keep customers coming back for department stores in particular: make the store more personable by introducing social cues that are relevant to their customers lifestyles and values. Two types of social cues were investigated here: personalized customer service and in-store graphics that convey social meaning. The results showed that these social cues do affect consumers perception of store image and patronage intention. In conclusion, although our study provides some interesting insights on consumers responses to simulated in-store customer service and a socially meaningful store environment, its ndings should be cross-validated with analyses of additional social cues, diverse retail formats, broader sample populations, and enhanced simulation methods. The studys ndings suggest that additional social cues, such as the interactions between shoppers, should be analyzed for their impacts on consumer perception of store image and shopping behavior in general. The rise of online-based retailing suggests that the internet, long criticized as the antithesis of a socially meaningful retail experience, is particularly ripe for research into whether this criticism is valid (Vala-Haynes, 2000). Future research should address the issue of whether models used in analyzing brick-and-mortar stores, such as our model of social cues, can be applied to retailers in an online shopping environment. Past research has shown gender differences in shopping behavior (Otnes and McGrath, 2001). Our research did not capture gender differences, therefore, the results are limited to the studys sampled population women of a particular demographic. However, the model tested in this paper could be extended to other demographic groups to explore its broader applicability. Another possible limitation of this study lies in the simulated retail environment (a photo album of a department store) used in querying respondents. This format may be a limiting factor in eliciting responses especially emotional ones which may signicantly differ from those evoked in an on-site shopping experience. This suggests future exploration of the use of computer-aided 3D design or animation, both of which may prove to be effective and efcient approaches to a simulated store environment (Burke, 1996).

44

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