| Abstract | Physical environment design (PED) in the context of emotional well-being in retail stores has been widely ignored in the retailing literature so far. Moreover, from a marketing viewpoint, PED not only fulfils the purpose of creating consumer perceptions, but also reflects the success story of a brand. Yet there is not much research available in the field addressing the issues of consumers’ emotional well-being with regard to the performance of retail stores.
The focus of this research is to study PED from a retail organisational perspective, to explore the relationships between physical environment and consumers’ emotional well-being, and examine the link between PED and brand performance in the UK context. This research addresses the role of PED in shaping consumers’ emotional well-being and its impact on an organisation’s performance, particularly consumers’ perception of brand performance. Therefore, this research contributes to existing knowledge by extending the findings of previous studies.
This study is the first methodical research which has introduced and conceptualised the notion of physical environment design, its antecedents and its consequences. It is anticipated to be useful in advancing existing knowledge by offering a threefold theoretical contribution to the literature 1) theory extension, 2) theory assessment, and 3) theory generalisation. In addition, it is expected that this research investigation would make a considerable managerial contribution to the understanding of retail business managers and decision-makers among physical environment design, its antecedents and its consequences.
This research employed a mixed-method approach with a dominant quantitative phase, comprising expert interviews, focus groups and a pilot survey, to acquire data to develop the measurement scales. After that, the main survey was conducted to test the research hypotheses and the proposed conceptual model. Based on the literature review, this study proposes a conceptual model of the positive relationships between PED in retail stores, emotional well-being and consumers’ perception towards brand performance. Visual identity, communication and cultural heritage are also included in the model as determinants of PED. The model is developed on the basis of place identity theory, affective theory and emotional theory.
Structural equation modelling (SEM) was used to conduct path analysis and to test stability and reliability of the model and eventually, reflected the good data-model fitness. With the underpinning of statistical findings, supporting literature and the in-depth interviews in the exploratory phase, this study revealed positive relationships between PED, emotional well-being and consumers’ perception towards brand performance.
However, an unanticipated outcome is that demographic differences moderate the relationship between PED and emotional well-being, which in turn affects consumers’ perception towards brand performance. Hence, to increase consumers’ perception towards the brand performance of retail stores, elements of PED are not merely responsible. With the increased use of online shopping, it becomes more challenging for retailers to offer a more engaging in-store customer experience. Additionally, physical environment design in the retail store has a psychological impact on consumers’ moods and perceptions.
A clear understanding of the nature of the relevant concepts can help managers and retailers to design physical environments that are likely to advance an enriched retail environment, based on physical dimensions in order to increase their success. This research recognises the importance of PED in the retail setting, and contributes to the knowledge by establishing its dimensions and clarifying the concept. The results are validated and refined by the literature. This research is among the few studies on understanding the components of PED and its contribution to consumers’ emotional well-being and their perception towards brand performance. |
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