CHAPTER 4 DATA ANALYSIS AND INTERPRETATION

Transcription

1 85 CHAPTER 4 DATA ANALYSIS AND INTERPRETATION 4.1. INTRODUCTION This chapter discusses the results of data analysis and hypothesis testing. irst demographic information of the respondents and information on their shopping habits are presented based on descriptive statistical analysis. Then the relationships (hypotheses) between the various determinants and the customer experience are tested using multiple regressions. inally the effects of the moderator are tested with two-way ANOVA for the various retail formats in this chapter. The results are summarized at the end DEMOGRAPHIC PROILE O RESPONDENTS Table 4.1 Demographic characteristics of the respondents Gender requency Percent Male emale Age years years years years years Marital status Married

2 86 Table 4.1 (Continued) Gender requency Percent Unmarried Others Education level High school Diploma Graduate Post graduate and above Monthly income Less than More than Number of family members Less than Greater than Number of earning members Less than or equal to More than Occupation Business Professional practioner Retired Unemployed Student Government employee Private employee Others

3 87 Table 4.1 represents the characteristics of the respondents. As mentioned before the respondents are those who have visited the particular retail format recently. Gender wise, majority of the respondents were females. A majority of the respondents were between the age group of years. Married respondents were more when compared to the other categories. Respondents were well educated since majority of them were graduates or above. A majority of the respondents were drawing a salary of more than rupees 50,000 per month. Nearly 95 percent of the families had less than five members indicating that the size of the family has shrunk considerably. Majority of the families had two earning members showing that the disposable income has increased. In the occupation category, majority of the respondents were employees in private organisations. 4.3 CONSUMER DEMOGRAPHICS AND SHOPPING HABITS This section reports shopping behaviour patterns and socio economic characteristics of the customers. This section will enable us to know the preference of different retail formats and the influence of demographic characteristics on the shopping habits. Analyses such as one way analysis of variance (ANOVA) and chi square test were used to examine the relationship of the customer demographic characteristics such as age, gender, marital status, level of education, monthly income, occupation, size of the family and the number of earning members in the family with the customer experience for the various retail formats.

4 Preference for Different Retail ormats As shown in the Table 4.2, the respondents are reasonably distributed across the different retail formats. Supermarket emerges as one of the most popular retail format followed by malls and hypermarket. Table 4.2 Descriptive statistics for various retail formats Retail format requency Percent Supermarket Departmental stores Hypermarket Malls Speciality stores Branded stores Total The choice of the retail format choices across respondents of all demographic categories is shown in the following tables. As shown in Table 4.3 majority of men visit branded stores and majority of women visit supermarkets, hypermarkets and specialty stores. The other retail formats such as department stores and malls are visited equally by both male and female customers. Table 4.3 Gender vs Choice of retail format Retail ormat requency Percentage Male emale Male emale Supermarket Departmental stores Hypermarket Malls Speciality stores Branded stores Total

5 89 Table 4.4 Age vs Choice of retail format Retail ormat yrs yrs requency yrs yrs yrs Supermarket Departmental stores Hypermarket Malls Speciality stores Branded stores Total As shown in Table 4.4 supermarkets are visited by a majority of respondents from all age groups. Respondents in the age group of years visit malls next only to supermarket. Respondents in the age group of mainly visit malls, between years patronise malls as well as branded stores, between years shop at hypermarket. Respondents in the age group of go to both specialty stores and malls. Table 4.5 Marital status vs Choice of retail format Retail requency Percentage ormat Married Unmarried Married Unmarried Supermarket Departmental stores Hypermarket Malls Speciality stores Branded stores Total

6 90 rom the Table 4.5 it can be seen that both married and unmarried respondents favour supermarket and it can be seen that malls and hypermarket are chosen next to supermarket. Table 4.6 Education level vs Choice of retail format requency Retail ormat Post graduate and High school Diploma Graduate above Supermarket Departmental stores Hypermarket Malls Speciality stores Branded stores Total The education level of the respondents across different retail formats has been tabulated in Table 4.6. A majority of the respondents across the formats are well educated being graduates or post graduates. Table 4.7 Monthly Income vs Choice of retail format requency Retail ormat Less than Above Supermarket Departmental stores Hypermarket Malls Speciality stores Branded stores Total The monthly income of the respondents across different retail formats have been tabulated in Table 4.7. Customers with a monthly income

7 91 of less than upto rupees favour supermarkets. Customers with monthly income more than prefer malls, hypermarket and branded stores. A majority of the respondents who visit the organised retail formats have monthly income above rupees. Table 4.8 amily Members vs Choice of retail format Retail ormat Less than and equal to 4 members requency More than 4 members Percentage Less than and equal to 4 members More than 4 members Supermarket Departmental stores Hypermarket Malls Speciality stores Branded stores Total rom the Table 4.8 it can be seen that both small and large family respondents favour supermarket and it can be seen that malls and hypermarket are chosen next to supermarket. Table 4.9 Earning Members in the family vs Choice of retail format No.of Earning members Retail format Single Double Multiple requency % requency % requency % Supermarket Departmental stores Hypermarket Malls Speciality stores Branded stores Total

8 92 rom the Table 4.9, it can be seen that families with single and double earning members favour supermarket and multiple earning members favour malls, hypermarket and supermarket. Table 4.10 Occupation vs Choice of retail format Retail ormat requency B P P R U St G P O Supermarket Departmental stores Hypermarket Malls Speciality stores Branded stores Total B-Business, PP-Professional Practioner, R-Retired, U-Unemployed, St-Student, G- Government employee, P-Private employee, O-Others rom the Table 4.10, it can be seen that professional practioners, unemployed, private employee and others favour supermarket. Government employees patronise hyper markets. Malls are preferred by student communities. Speciality stores are preferred by both professional practioners and retired people. Business men favour branded stores. Table 4.11 requency of visiting retail formats requency of visit requency Percentage More than once a month Once a month Once in two months Once in three months Once in six months Once in a year Total

9 93 A majority of the respondents visit the retail formats once a month (38.1%), 20.4% stated that they visit more than once a month. Very few respondents visited less frequently (ie) once a year (6.1%) according to Table Duration of Relationship Table 4.12 Duration of relationship Duration requency Percentage Less than one year One to two yars Two to three years Three to four years our to five years Greater than five years Total Table 4.13 Duration of relationship with the particular retail format Duration Super market Departmental stores Hyper market Malls Speciality stores Branded stores Total < 1 year years years years years > 5 years Total rom the data in Table 4.12 it can be seen that majority of the respondents has been visiting the particular retail format between one to two years. In particular (table 4.13) it can be seen that maximum number of respondents are associated with supermarkets, hypermarkets, malls, speciality stores and branded stores in the duration of 1-2 years. In the case of department stores, it is <1 year.

10 Shopping Companion Table 4.14 Shopping companion and retail format Retail format Companion Alone With family With friends Relatives Total Supermarket Departmental stores Hypermarket Malls Speciality stores Branded stores Total rom Table 4.14 it can be seen that a majority of the respondents visits the retail formats along with family members. Shopping alone is the second highest preference for all retail formats except that of malls where the second highest choice of companion is friends Intention of Visit Table 4.15 Purpose of visit and retail format Retail format Necessary Discount offer Occassion of visit estivals Special occasions Total Supermarket Departmental stores Hypermarket Malls Speciality stores Branded stores Total

11 95 The major reason for visiting the retail formats (table 4.15) is the necessity. Second reason is the discount offers given by all the formats. Third reason is the purchase of goods for festivals Time Span of Visit Table 4.16 Extent of time spent at the retail format Retail format Lengthofvisit (hours) Less than >3 Total Supermarket Departmental stores Hypermarket Malls Speciality stores Branded stores Total In supermarkets, departmental stores, speciality stores and branded stores a majority of respondents spend about an hour during each visit. In case of hypermarkets and malls respondents widely spend three hours during their visit (Table 4.16) Preferred Days for Shopping Table 4.17 avoured time of visit to the retail format Retail format Store visit Holidays Weekdays Weekends Total Supermarket Departmental stores Hypermarket Malls Speciality stores Branded stores Total

12 96 Respondents usually prefer to visit supermarkets, department stores, hypermarket, malls and branded stores on week ends (Table 4.17). In the case of speciality stores they prefer to visit on both weekends and holidays Summary of Consumer Demograpics and Shopping Habits Male customers predominantly visit branded stores and female customers visit supermarkets, hypermarkets and speciality stores. Customers mainly in the age group of years visit these organised formats and majority of them are married. They are highly educated and belong to the upper middle class (monthly income greater than INR), with double income in a nuclear family setup. Customers are employed mainly in private organisation with many of them visiting these formats atleast once a month. The period of association with the organised formats is smaller (mainly one two years). They prefer shopping with their family members whenever it is necessary and usually spend less than an hour at the outlets during weekends. 4.4 CUTOMER EXPERIENCE VERSUS DEMOGRAPHIC CHARACTERISTICS An attempt is made to check if there is any relationship between customer experience and the various demographic characteristics using t-test and One-Way ANOVA Customer experience versus gender The Independent sample t test result shown in table The test is carried out to check whether differences in customer experience exist across the gender of the respondents.

13 97 Table 4.18 Result of Independent samples t test between customer experience and gender Customer experience Levene's Test for Equality of T-test for Equality of s Variances T Df (2-tailed) Difference Gender The results ( (1,838) =0.008,p>0.01) showed that there was no significant difference in customer experience based on the gender of the respondent Customer experience versus age One way ANOVA was used to test for differences in customer experience across different age groups. The following hypothesis is formulated to check whether all age group of customers have equal customer experience. groups. H 0 : The customer experience does not vary for different age Table 4.19 Result of ANOVA between customer experience and age Age group Customer experience ( score) years years years years years value :6.821 P=.000

14 98 The Table 4.19 showed that there was significant difference ( (4,835) =6.821,p<0.01) in customer experience based on respondent s age groups thereby rejecting the null hypothesis. Based on the mean values for the different age groups it can be seen that as age increases the customer experience decreases. This may be attributed to the fact that younger customers look at shopping as a hedonic and experiential activity whereas the older customers mainly focus on finishing the particular shopping task (finding the desired product) Customer experience versus marital status One way ANOVA was done to test for differences in customer experience across different marital status groups. Therefore, the following hypothesis is formulated to check whether all groups of customers have equal customer experience. status groups. H 0 : The customer experience does not vary for different marital Table 4.20 Result of ANOVA between customer experience and marital status Marital Status Customer experience ( score) Married Unmarried Others value : P=.000 The Table 4.20 showed that there was significant difference ( (2,837) =20.745,p<0.01) in customer experience based on marital status of the respondent thereby rejecting the null hypotheses. Based on the mean values of the different groups it can be seen that unmarried customers have better experience than the married customers and others have the lowest experience.

15 99 This may be attributed to the fact that unmarried customers usually spend more for them and shop for intrinsic enjoyment rather than to solve problems by purchasing products/services Customer Experience Versus Education Level One way ANOVA was done to test for differences in customer experience across different education level of respondents. Table 4.21 Result of ANOVA between customer experience and education level Customer experience Sum of s Between Groups Within Groups Total The Table 4.21 showed that there was no significant difference ( (3,836) =3.220,p>0.01) in customer experience based on the education level of the respondent Customer Experience Versus Monthly Income One way ANOVA was done to test for differences in customer experience across monthly income of respondents.

16 100 Table 4.22 Result of ANOVA between customer experience and monthly income Customer experience Sum of s Between Groups Within Groups Total The Table 4.22 showed that there was no significant difference ( (5,834) =2.901,p>0.01) in customer experience based on the monthly income of the respondent Customer Experience Versus Number of amily Members The Independent sample t test results shown in Table This is to test for the differences in customer experience across family size. Table 4.23 Result of Independent sample t test between customer experience and number of family members Customer experience Levene's Test for Equality of Variances T-test for Equality of s T (2-tailed) Difference No.of family members The results ( (1,838) =0.008,p>0.01) showed that there was no significant difference in customer experience based on the number of family members.

17 Customer Experience Versus No.Earning Members in the amily One way ANOVA was done to test for differences in customer experience across number of earning members. Table 4.24 Result of ANOVA between customer experience and no.earning members in the family Customer experience Sum of s Between Groups Within Groups Total The Table 4.24 showed that there was no significant difference ( (3,819) =1.972,p>0.01) in customer experience based on the number of earning members in the family of the respondent Customer experience versus occupation One way ANOVA was done to test for the differences in customer experience across occupation of the respondent. Therefore, the following hypothesis is formulated to check whether all the groups of customers have equal customer experience. groups. H 0 : The customer experience does not vary for different occupation

18 102 Table 4.25 Result of ANOVA between customer experience and the occupation of the respondent Customer Occupation experience ( score) Business Professional practioner Retired Unemployed Student Government employee Private employee Others value :4.127 P=.000 The Table 4.25 showed that there was significant difference ( (7,839) =4.127,p<0.01) in customer experience based on the occupation of the respondent thereby rejecting the null hypotheses. Based on the mean values of the different groups it can be seen that professional practioners have better experience followed by businessmen and students. Customers who have retired from service have the lowest customer experience. This may be attributed to the fact that retired people have less disposable income and thereby resort to need based shopping and do not resort to unplanned purchases also they place less importance on the experiential aspects. Whereas customers belonging to professional or business category have comparatively higher disposable income and would emphasise on having better shopping experience even if it comes at a higher cost. 4.5 RELATIONSHIP BETWEEN THE VARIOUS DETERMINANTS AND THE CUSTOMER EXPERIENCE In order to study the relationship between the various determinants and the customer experience, multi-item scales were used. A multi-item scale consists of a number of ratings combined into a single value. Multi-item

19 103 scales are used to represent complex psychological constructs that can't be summarized in a single question. Multi-item measures are more reliable and less volatile than single-item questions. As a result of this increased stability, multi-item scales make excellent benchmarks (Henning 2009). The internal consistency of the scale items is an important test of reliability. Reliability test is used to assess the internal consistency of summated scale where several items are summated to form total score. One measure of internal consistency is Cronbach alpha. Cronbach s alpha accounts for all possible two-way splits (Nunnally 1967). The Cronbach < 0.6 indicates poor reliability (Malhotra and Birks 2007). The Cronbach > 0.7 indicates more reliability (Nunnally & Berstein 1994). Table 4.26 gives the cronbach alpha values for the constructs. It seen that the values are in the range 0.70 to 0.96 which indicate that the instruments are reliable. Table 4.26 Cronbach alpha values of the variables S. NO Variables Cronbach alpha 1 Social environment Service interface Retail atmosphere Assortment Price Customer experience in alternate channels 7 Retail brand Previous customer experience Customer experience Situation moderator Consumer moderator 0.842

20 TESTING O HYPOTHESIS The hypothesized model and proposed hypotheses were tested using multiple regression procedure and the significance of the beta coefficient was measured to show the relationship between the variables. The two tailed t-tests were used to predict the significance of the variables because of directionality in hypothesis. The findings of regression analysis for testing the hypothesis are presented as two sections. In the first section the various antecedents of customer experience namely social environment, service interface, retail atmosphere, assortment, price, customer experience in alternate channels, retail brand and previous customer experience on customer experience are tested. In the second section the various antecedents on customer experience are tested in the presence of the moderators namely location, involvement and motivation. or each of the retail format regression without moderator and the relevant effects of the moderators are tested. The results are discussed individually. 4.7 SUPERMARKET A supermarket is defined as a form of self-service grocery store, offering a wide variety of food and household merchandise, organized into departments which are larger in size and has a wider selection than a traditional grocery store. Examples of supermarket that have a strongfoot hold in Chennai are Reliance resh, Nilgris, More, resh@, Spencer s etc. The descriptive characteristics of the data for the supermarket are given below in the Table 4.27.

21 105 Table 4.27 Constructs, mean and standard deviation for supermarket. Constructs Statistic Std. Error Std. Deviation Customer experience Previous experience Atmosphere Assortment Price Service interface Social environment Retail brand Location Motivation Involvement Alternate channels experience Regression Result for Customer Experience in Supermarket The following hypotheses were tested: H 1A : In supermarket Social environment will significantly influence the experience of the retail customers. H 2A : In supermarket Service interface will significantly influence the experience of the retail customers. H 3A : In supermarket Retail atmosphere will significantly influence the experience of the retail customers. H 4A : In supermarket Assortment will significantly influence the experience of the retail customers.

22 106 H 5A : In supermarket Price will significantly influence the experience of the retail customers. H 6A : In supermarket Experience in alternate channels will significantly influence the experience of the retail customers. H 7A : In supermarket Retail brand will significantly influence the experience of the retail customers. H 8A : In supermarket previous customer experience will significantly influence the experience of the retail customers. The generalized equation for regression is CE= a + 1 SE + 2 SI + 3 RA + 4 AS + 5 PR + 6 AC + 7 RB+ 8 PE Table 4.28 Summary of regression models for determinants and customer experience for supermarkets Model R R Adjusted R Std. Error of the Estimate The result of the multiple regression using enter method as in Table 4.28 and Table 4.29, shows that overall model for supermarket yielded a significant statistic (=51.972, p<0.000) and adjusted R 2 =.617, explained by social environment, service interface, retail atmosphere, assortment, price, experience in alternate channels, retail brand and previous customer experience.

23 107 Table 4.29 Model significance for supermarkets Model Sum of s Regression Residual Total As hypothesized social environment is significantly influencing customer experience ( =0.1756, p<0.05) thus supporting the hypothesis H 1A. Retail atmosphere is significantly influencing customer experience ( =0.320, p<0.05) thus supporting the hypothesis H 3A and it is the strongest determinant of customer experience. Price is significantly influencing customer experience ( =0.147, p<0.05) thus supporting the hypothesis H 5A. Experience in alternate channels is significantly influencing customer experience =0.112, p<0.05) thus supporting the hypothesis H 6A. Past experience is significantly influencing customer experience ( =0.276, p<0.05) thus supporting the hypothesis H 8A. The outcomes are summed up in Table Supermarkets are the dominant format of organised retailing with a number of retailers operating in the environment. Thus competition is tough between the different players. ocussing on customer experience can give an edge to the retailer. Social environment, retail atmosphere, price, experience in alternate channels and past experience are the significant antecedents of customer experience in the case of supermarket. Customers prefer supermarkets over traditional grocery store because of the presence and interaction between similar customers which directly impacts customer experience. A pleasant shopping environment with bright lights and fine music impacts the customer and it is a prominent contributor. Loyalty programmes which results in cost reduction for the customer act as switching barriers. Customers are exposed to alternate channels of shopping therefore,

24 108 retailer s presence online offering information of the store, products and the other special promotions can differentiate the retailer from other players. Experience at the previous instant helps the customer to understand the retailer and form an opinion which impacts the current situation. The estimating equation for supermarkets can now be constructed as CE (SM) = SE RA PR AC PE Table 4.30 Predictor effects and estimates for determinants on customer experience for supermarket Model Unstandardized Coefficients Standardized Coefficients B Std. Error Beta (Constant) Past experience Atmosphere Assortment Price Service interface Social environment Retail brand Alternate experience channel t The regression residue distribution is checked for normality by using histogram and probability plot chart and found to be satisfactory as in igure 4.1 and igure 4.2. The regression variate is found to meet the assumption of normality.

25 109 igure 4.1 Residue distributions for supermarket igure 4.2 Probability plot residue distributions for supermarket Moderating Effect Moderator models are used to examine when an independent variable influences a dependent variable. That is, moderated models are used to identify factors that change the relationship between independent and dependent variables. General linear method was performed on customer experience, the determinants and the moderator.

26 Location The moderating effects of the situation moderator namely location on the various determinants namely the social environment, service interface, retail atmosphere, assortment, price, customer experience in alternate channels and retail brand are tested for supermarket. The main and interaction effect of location and determinants on customer experience was tested. H 9A1 : Location significantly influences customer experience in the case of supermarkets. H 9A2 : Location moderates the effect of the determinants on customer experience for supermarkets. H 9A2A : H 9A2B : H 9A2C : H 9A2D : H 9A2E : H 9A2 : H 9A2G : Location moderates the effect of the social environment on customer experience for supermarkets. Location moderates the effect of the service interface on customer experience for supermarkets. Location moderates the effect of the retail atmosphere on customer experience for supermarkets. Location moderates the effect of the assortment on customer experience for supermarkets. Location moderates the effect of the price on customer experience for supermarkets. Location moderates the effect of the experience in the alternate channels on customer experience for supermarkets. Location moderates the effect of the retail brand on customer experience for supermarkets.

27 111 Table 4.31 Two-way ANOVA of location and social environment on customer experience for supermarkets of s Location Social environment Location* Social environment a. R d =.461 (Adjusted R d =.455) As hypothesized the main effect of location on customer experience ( (3,251) =0.000,p>0.01) was not supported. The interaction effect of location and social environment on customer experience for a supermarket as hypothesized in H 9A2A ( (3,251) =1.408,p>0.01) was not supported (Table 4.31). Table 4.32 Two-way ANOVA of location and service interface on customer experience for supermarkets of s Location Service interface Location* Service interface a. R d =.389 (Adjusted R d =.382) As hypothesized the main effect of location on customer experience ( (3,251) =1.084,p>0.01) was not supported. The interaction effect of location and service interface on customer experience for a supermarket as hypothesized in H 9A2B ( (3,251) =0.207,p>0.01) was not supported (Table 4.32).

28 112 Table 4.33 Two-way ANOVA of location and retail atmosphere on customer experience for supermarkets Location Atmosphere Location * Atmosphere a. R d =.562 (Adjusted R d =.557) As hypothesized the main effect of location on customer experience ( (3,252)=0.875,p>0.01) was not supported. The interaction effect of location and retail atmosphere on customer experience for a supermarket as hypothesized in H 9A2C ( (3,252) =2.967, p<0.1) was supported at 10% level of significance (Table 4.33). igure 4.3 Interaction effects of location and atmosphere on customer experience for supermarket rom the igure 4.3 it can be seen that a favourable location increases customer experience when atmosphere is high. avourable location increases customer experience when atmosphere is low.

29 113 Thus it can be seen that regardless of the atmosphere at the supermarket a favourable location significantly increases customer experience. A convenience orientation is a key benefit that shoppers seek in the modern environment. Consumers perceptions of convenience (e.g., opening hours, location, and parking) will have a positive influence on their satisfaction with the service (Berry et al 2002). Therefore, a favourable location can camouflage even the negative effects of a dull atmosphere of the retail outlet. Table 4.34 Two-way ANOVA of location and assortment on customer experience for supermarkets of s Location Assortment Location * Assortment a. R d =.410 (Adjusted R d =.403) As hypothesized the main effect of location on customer experience ( (3,252) =0.750, p>0.01) was not supported. The interaction effect of location and assortment on customer experience for a supermarket as hypothesized in H 9A2D ( (3,252) =0.333,p>0.01) was not supported (table 4.34). Table 4.35 Two-way ANOVA of location and price on customer experience for supermarkets Location Price Location * Price R d =.487 (Adjusted R d =.481)

30 114 As hypothesized the main effect of location on customer experience ( (3,252) =0.162, p>0.01) was not supported. The interaction effect of location and price on customer experience for a supermarket as hypothesized in H 9A2E ( (3,252) =0.729,p>0.01) was not supported (Table 4.35). Table 4.36 Two-way ANOVA of location and alternate channel on customer experience for supermarkets Location Alternate channel Location * Alternate channel a. R d =.418 (Adjusted R d =.411) As hypothesized the main effect of location on customer experience ( (3,252) =0.081, p>0.01) was not supported. The interaction effect of location and experience in the alternate channels on customer experience for a supermarket as hypothesized in H 9A2 ( (3,252) =4.155, p<0.1) was supported at 10% level of significance (Table 4.36). igure 4.4 Interaction effects of location and alternate channel on customer experience for supermarket

31 115 rom the igure 4.4 it can be seen that a favourable location increases customer experience when alternate channel experience is high. avourable location increases customer experience when alternate channel experience is low. Thus it can be seen that regardless of the customer s perception of the experience in alternate channels of the supermarket, a favourable location significantly increases customer experience. A convenience orientation is a key benefit that shoppers seek in the modern environment. Empirical study shows that easy accessibility has a high correlation with shopping centre selection (Bellenger et al 1977). Therefore, for the retailer a central and favourable location can conceal the redundant alternate channel options. Table 4.37 Two-way ANOVA of location and retail brand on customer experience for supermarkets Location Retail brand Location * retail brand a. R d =.462 (Adjusted R d =.455) As hypothesized the main effect of location on customer experience ( (3,252) =0.907, p>0.01) was not supported. The interaction effect of location and retail brand on customer experience for a supermarket as hypothesized in H 9A2G ( (3,252) =0.065, p>0.01) was not supported (Table 4.37) Goal The moderating effects of the goal of the customer (whether the customer is experientially oriented or task oriented) on the various determinants namely the social environment, service interface, retail

32 116 atmosphere, assortment, price, customer experience in alternate channels and retail brand are tested for supermarket. The main and interaction effect of goal and determinants on customer experience was tested. H 10A1 : Goal significantly influences customer experience in the case of supermarkets. H 10A2 : Goal moderates the effect of the determinants on customer experience for supermarkets. H 10A2A : H 10A2B : H 10A2C : H 10A2D : H 10A2E : H 10A2 : H 10A2G : Goal moderates the effect of the social environment on customer experience for supermarkets. Goal moderates the effect of the service interface on customer experience for supermarkets. Goal moderates the effect of the retail atmosphere on customer experience for supermarkets. Goal moderates the effect of the assortment on customer experience for supermarkets. Goal moderates the effect of the price on customer experience for supermarkets. Goal moderates the effect of the experience in the alternate channels on customer experience for supermarkets. Goal moderates the effect of the retail brand on customer experience for supermarkets.

33 117 Table 4.38 Two-way ANOVA of goal and social environment on customer experience for supermarkets Goal Social environment Goal * social environment a. R d =.419 (Adjusted R d =.412) As hypothesized the main effect of goal on customer experience ( (3,251) =0.136, p>0.01) was not supported. The interaction effect of goal and social environment on customer experience for a supermarket as hypothesized in H 10A2A ( (3,251) =0.147, p>0.01) was not supported (Table 4.38). Table 4.39 Two-way ANOVA of goal and service interface on customer experience for supermarkets of s Goal Service interface Goal * service interface a. R d =.302 (Adjusted R d =.294) As hypothesized the main effect of goal on customer experience ( (3,251) =0.530, p>0.01) was not supported. The interaction effect of goal and service interface on customer experience for a supermarket as hypothesized in H 10A2B ( (3,251) =0.232,p>0.01) was not supported (Table 4.39).

34 118 Table 4.40 Two-way ANOVA of goal and atmosphere on customer experience for supermarkets of s Goal Atmosphere Goal * atmosphere a. R d =.499 (Adjusted R d =.493) As hypothesized the main effect of goal on customer experience ( (3,251) =1.277, p>0.01) was not supported. The interaction effect of goal and retail atmosphere on customer experience for a supermarket as hypothesized in H 10A2C ( (3,251) =1.036,p>0.01) was not supported (Table 4.40). Table 4.41 Two-way ANOVA of goal and assortment on customer experience for supermarkets Goal Assortment Goal * assortment a. R d =.342 (Adjusted R d =.335) As hypothesized the main effect of goal on customer experience ( (3,252) =2.495, p>0.01) was not supported. The interaction effect of goal and assortment on customer experience for a supermarket as hypothesized in H 10A2D ( (3,252) =1.336, p>0.01) was not supported (Table 4.41).

35 119 Table 4.42 Two-way ANOVA of goal and price on customer experience for supermarkets Goal Price Goal * price a. R d =.444 (Adjusted R d =.437) As hypothesized the main effect of goal on customer experience ( (3,252) =4.225, p<0.1) was supported. The interaction effect of goal and price on customer experience for a supermarket as hypothesized in H 10A2E ( (3,252) =3.377, p<0.1) was supported at 10% level of significance (table 4.42). igure 4.5 Interaction effects of goal and price on customer experience for supermarket rom the igure 4.5 it can be seen that when goal of the customer is experiential it increases the customer experience when price is high. On the

36 120 contrary there is not much difference in customer experience when the price is low. In the case of supermarkets experientially oriented respondent s customer experience is higher when their perception of price (loyalty programs and promotions) is high. Experientially oriented customers browse for products and purchase products impulsively (Souitaris and Balabanis 2007) therefore retailers can introduce customised loyalty programmes and display promotion offers at prominent locations to significantly increase the experience of these customers. Table 4.43 Two-way ANOVA of goal and alternate channel on customer experience for supermarkets Goal Alternate channel Goal * alternate channel a. R d =.334 (Adjusted R d =.326) As hypothesized the main effect of goal on customer experience ( (3,252) =0.517, p>0.01) was not supported. The interaction effect of goal and experience in alternate channel on customer experience for a supermarket as hypothesized in H 10A2 ( (3,252) =0.152, p>0.01) was not supported (Table 4.43).

37 121 Table 4.44 Two-way ANOVA of goal and retail brand on customer experience for supermarkets Goal Retail brand Goal * retail brand a. R d =.398 (Adjusted R d =.391) As hypothesized the main effect of goal on customer experience ( (3,252) =2.30, p>0.01) was not supported. The interaction effect of goal and retail brand on customer experience for a supermarket as hypothesized in H 10A2G ( (3,252) =1.641, p>0.01) was not supported (table 4.44) Involvement The moderating effects of involvement of the customer (whether the involvement of the customer is high or low) on the various determinants namely the social environment, service interface, retail atmosphere, assortment, price, customer experience in alternate channels and retail brand are tested for supermarket. The main and interaction effect of goal and determinants on customer experience was tested. H 11A1 : Involvement significantly influences customer experience in the case of supermarkets. H 11A2 : Involvement moderates the effect of the determinants on customer experience for supermarkets.

38 122 H 11A2A : Involvement moderates the effect of the social environment on customer experience for supermarkets. H 11A2B : Involvement moderates the effect of the service interface on customer experience for supermarkets. H 11A2C : Involvement moderates the effect of the retail atmosphere on customer experience for supermarkets. H 11A2D H 11A2E H 11A2 H 11A2G : Involvement moderates the effect of the assortment on customer experience for supermarkets. : Involvement moderates the effect of the price on customer experience for supermarkets. : Involvement moderates the effect of the experience in the alternate channels on customer experience for supermarkets. : Involvement moderates the effect of the retail brand on customer experience for supermarkets. Table 4.45 Two-way ANOVA of involvement and social environment on customer experience for supermarkets Involvement Social environment Involvement * social environment a. R d =.487 (Adjusted R d =.481) As hypothesized the main effect of involvement on customer experience ( (3,251) =1.858, p>0.01) was not supported. The interaction effect

39 123 of involvement and social environment on customer experience for a supermarket as hypothesized in H 11A2A ( (3,252) =0.002, p>0.01) was not supported (Table 4.45). Table 4.46 Two-way ANOVA of involvement and service interface on customer experience for supermarkets Involvement Service interface Involvement * service interface a. R d =.440 (Adjusted R d =.434) As hypothesized the main effect of involvement on customer experience ( (3,251) =240, p>0.01) was not supported. The interaction effect of involvement and service interface on customer experience for a supermarket as hypothesized in H 11A2B ( (3,252) =4.832, p<0.1) was supported at 10% level of significance (Table 4.46). igure 4.6 Interaction effects of involvement and service interface on customer experience for supermarket

40 124 rom the igure 4.6 it can be seen that high involvement increases customer experience when service interface is high. High involvement increases customer experience when service interface is low. Thus it can be seen that regardless of service interface (service person and technology) at the supermarket high involvement significantly increases customer experience. Previous research indicates that higher involvement leads to heightened emotional arousal with the consumption experience (Mano and Oliver 1993; Wakefield and Blodgett 1994). In short it can be said that individuals tend to get more excited about things in which they are highly involved. Highly involved customers need to have the freedom to roam and explore a store so that their experience is superior. The retailer should give them a zone of personal space, especially when they first enter a store. Salespeople should greet highly involved customers when they come into a store and then allow them to be on their own, ready to help only when it is required. Table 4.47 Two-way ANOVA of involvement and atmosphere on customer experience for supermarkets Involvement Atmosphere Involvement * atmosphere a. R d =.577 (Adjusted R d =.572) As hypothesized the main effect of involvement on customer experience ( (3,251) =2.00, p>0.01) was not supported. The interaction effect of involvement and retail atmosphere on customer experience for a

41 125 supermarket as hypothesized in H 11A2C ( (3,252) =0.006, p>0.01) was not supported (Table 4.47). Table 4.48 Two-way ANOVA of involvement and assortment on customer experience for supermarkets Involvement Assortment Involvement * assortment a. R d =.462 (Adjusted R d =.456) As hypothesized the main effect of involvement on customer experience ( (3,252) =0.104, p>0.01) was not supported. The interaction effect of involvement and assortment on customer experience for a supermarket as hypothesized in H 11A2D ( (3,252) =3.954, p<0.1) was supported at 10% level of significance (Table 4.48). igure 4.7 Interaction effects of involvement and assortment on customer experience for supermarket

42 126 rom the igure 4.7 it can be seen that increase in involvement increases customer experience only slightly when assortment is high. Whereas an increase in involvement, increases customer experience significantly when assortment is low. Thus it can be seen that regardless of assortment (variety, uniqueness and quality) at the supermarket high involvement increases customer experience. According to a previous study by Park et al (2007), assortment have a greater effect on retail brand equity in the customer group with low involvement and that price/value ratio, communication and store design are the dimensions with a higher effect on retail brand equity for consumers with high involvement. Therefore, retailers have to create a store environment and atmosphere that enables highly involved customers to experience the various other dimensions while shopping. Stores should be designed in a manner that it is attractive, has unique layout and design that encourages exploration, but at the same time facilitates freedom of movement, i.e., stores should be well-organized, uncluttered, and not overcrowded with merchandise and floor fixtures and displays. Table 4.49 Two-way ANOVA of involvement and price on customer experience for supermarkets Involvement price Involvement * price a. R d =.506 (Adjusted R d =.500) As hypothesized the main effect of involvement on customer experience ( (3,252) =1.582, p>0.01) was not supported. The interaction effect

43 127 of involvement and price on customer experience for a supermarket as hypothesized in H 11A2E ( (3,252) =0.009, p>0.01) was not supported (Table 4.49). Table 4.50 Two-way ANOVA of involvement and alternate channel on customer experience for supermarkets Involvement Alternate channel involvement * alternate channel a. R d =.434 (Adjusted R d =.427) As hypothesized the main effect of involvement on customer experience ( (3,252) =0.177, p>0.01) was not supported. The interaction effect of involvement and experience in alternate channels on customer experience for a supermarket as hypothesized in H 11A2 ( (3,252) =1.988, p>0.01) was not supported (table 4.50). Table 4.51 Two-way ANOVA of involvement and retail brand on customer experience for supermarkets Involvement Retail brand Involvement * retail brand a. R d =.479 (Adjusted R d =.473) As hypothesized the main effect of involvement on customer experience ( (3,252) =1.667, p>0.01) was not supported. The interaction effect

44 128 of involvement and retail brand on customer experience for a supermarket as hypothesized in H 11A2 ( (3,252) =0.005, p>0.01) was not supported (Table 4.51) Summary Supermarket Regression analysis was carried out to identify the most significant contributors to customer experience. Social environment, retail atmosphere, price, experience in alternate channels and past experience are the significant antecedents of customer experience in the case of supermarket.general linear method was used to study the effects of moderator on the relationship between the determinamt and customer experience. Significant interaction effect exists between location and retail atmosphere and also between location and alternate channels experience. Significant interaction effect exists between goal and price. The interaction effects between involvement and service interface as well as between involvement and assortment are significant. 4.8 DEPARTMENT STORES A department store caters to a variety of consumer needs. It usually ranges from sqft and has extensive display of product varieties excluding grocery items. Examples of prominent department stores in Chennai region are Shopper s stop, West side, Landmark, Lifestyle and Pantaloons.The descriptive characteristics of the data for the department store are given below in the Table 4.52.

45 129 Table 4.52 Constructs, mean and standard deviation for department stores Constructs Std. Deviation Statistic Std. Error Statistic Customer experience Previous experience atmosphere Assortment Price Service interface Social environment Retail brand Alternate channels experience Involvement location Goals Regression Result for Customer Experience in Department Stores The following hypotheses were tested: H 1B : In department stores Social environment will significantly influence the experience of the retail customers. H 2B : In department stores Service interface will significantly influence the experience of the retail customers. H 3B : In department stores Retail atmosphere will significantly influence the experience of the retail customers. H 4B : In department stores Assortment will significantly influence the experience of the retail customers.

46 130 H 5B : In department stores Price will significantly influence the experience of the retail customers. H 6B : In department stores Experience in alternate channels will significantly influence the experience of the retail customers. H 7B : In department stores Retail brand will significantly influence the experience of the retail customers. H 8B : In department stores previous customer experience will significantly influence the experience of the retail customers. The generalized equation for regression is CE= a + 1 SE + 2 SI + 3 RA + 4 AS + 5 PR + 6 AC + 7 RB+ 8 PE Table 4.53 Summary of regression models for determinants and customer experience for department stores Model R R Adjusted R Std. Error of the Estimate a The result of the multiple regression using enter method as in table 4.53 and table 4.54, shows that overall model for department store yielded a significant statistic (=24.388, p<0.000) and adjusted R 2 =0.590, explained by social environment, service interface, retail atmosphere, assortment, price, experience in alternate channels, retail brand and previous customer experience.

47 131 Table 4.54 Model significance for department stores Model Sum Regression Residual Total As hypothesized social environment is significantly influencing customer experience ( =0.224, p<0.05) thus supporting the hypothesis H 1B. Retail atmosphere is significantly influencing customer experience ( =0.514, p<0.05) thus supporting the hypothesis H 3B and it is the strongest determinant of customer experience. Price is significantly influencing customer experience ( =0.303, p<0.05) thus supporting the hypothesis H 5B. The outcomes are summed up in Table Department stores deal with a wide variety of products excluding grocery items. Social environment, retail atmosphere and price are the significant contributors. The department stores in Chennai are present in prominent upmarket retail locations and cater to niche customers. Therefore the customers expect department stores to be less crowded and social environment to be managed in a manner that it attracts similar/compatible customers. Since the presence of other customers can significantly enhance or ruin the experience of the other customers. The atmosphere plays a vital role in providing a positive customer experience. The store has to be designed in such a way that it is easy to locate items by allocating sections for different product category and using visual sign boards. By using loyalty programmes such as club cards, coupons or discount programmes the customer experience can be improved. The Equation for department stores can now be constructed as CE (DS) = SE RA PR

48 132 Table 4.55 Predictor effects and estimates for determinants on customer experience for department stores Model Unstandardized Coefficients B Std. Error Beta Standardized Coefficients t (Constant) Past experience Atmosphere Assortment Price Service interface Social environment Retail brand Alternate channel experience The regression residue distribution is checked for normality by using histogram and PP chart and found to be satisfactory as in igure 4.8 and igure 4.9. The regression variate is found to meet the assumption of normality. igure 4.8 Residue distributions for department stores

49 133 igure 4.9 P-P plot residue distributions for department stores Moderating Effect Moderator models are used to examine when an independent variable influences a dependent variable. That is, moderated models are used to identify factors that change the relationship between independent and dependent variables. General linear method was performed on customer experience, the determinants and the moderator Location The moderating effects of the situation moderator namely location on the various determinants namely the social environment, service interface, retail atmosphere, assortment, price, customer experience in alternate channels and retail brand are tested for department store. The main and interaction effect of location and determinants on customer experience was tested. H 9B1 : Location significantly influences customer experience in the case of department store. H 9B2 : Location moderates the effect of the determinants on customer experience for department store.

50 134 H 9B2A : H 9B2B : H 9B2C : H 9B2D : H 9B2E : Location moderates the effect of the social environment on customer experience for department store. Location moderates the effect of the service interface on customer experience for department store. Location moderates the effect of the retail atmosphere on customer experience for department store. Location moderates the effect of the assortment on customer experience for department store. Location moderates the effect of the price on customer experience for department store. H 9B2 : Location moderates the effect of the experience in the alternate channels on customer experience for department store. H 9B2G : Location moderates the effect of the retail brand on customer experience for department store. Table 4.56 Two-way ANOVA of location and social environment on customer experience for department store Location Social environment Location * social environment a. R d =.428 (Adjusted R d =.415)

51 135 As hypothesized the main effect of location on customer experience ( (3,136) =4.799, p<0.1) was supported. The interaction effect of location and social environment on customer experience for department store as hypothesized in H 9B2A ( (3,136) =4.395,p>0.1) was not supported at 10% level of significance (Table 4.56). Table 4.57 Two-way ANOVA of location and service interface on customer experience for department store Location Service interface Location * service interface a. R d =.254 (Adjusted R d =.236) As hypothesized the main effect of location on customer experience ( (3,131) =1.485, p>0.01) was not supported. The interaction effect of location and service interface on customer experience for department store as hypothesized in H 9B2B ( (3,131) =0.604, p>0.01) was not supported (Table 4.57). Table 4.58 Two-way ANOVA of location and atmosphere on customer experience for department store of s Location Atmosphere Location * atmosphere a. R d =.512 (Adjusted R d =.502) As hypothesized the main effect of location on customer experience ( (3,135) =5.487, p<0.1) was supported. The interaction effect of location and

52 136 retail atmosphere on customer experience for department store as hypothesized in H 9B2C ( (3,135) =3.684,p<0.1) was supported at 10% level of significance (Table 4.58). igure 4.10 Interaction effects of location and atmosphere on customer experience for department stores rom the igure 4.10 it can be seen that increase in location increases customer experience only slightly when atmosphere is high. Whereas an increase in location, increases customer experience significantly when atmosphere is low. Thus it can be seen that when the location of the department store is favourable customer experience is greater although the atmosphere of the store is low. Convienience isthe key for customers who are deprived of time, under such circumstances the ability of the retailer to stay put in a particularly favourable location (either at the center of the city or at an accessible place) can easily conceal the differences in the retail atmosphere of the store to a greater extent.

53 137 Table 4.59 Two-way ANOVA of location and assortment on customer experience for department store Location Assortment Location * assortment a. R d =.449 (Adjusted R d =.437) As hypothesized the main effect of location on customer experience ( (3,136) =0.680, p>0.01) was not supported. The interaction effect of location and assortment on customer experience for department store as hypothesized in H 9B2D ( (3,136) =0.212,p>0.01) was not supported (table 4.59). Table 4.60 Two-way ANOVA of location and price on customer experience for department store Location Price Location * price a. R d =.511 (Adjusted R d =.500) As hypothesized the main effect of location on customer experience ( (3,134) =4.018, p<0.1) was supported. The interaction effect of location and price on customer experience for department store as hypothesized in H 9B2E ( (3,134) =4.639,p<0.1) was supported at 10% level of significance (table 4.60).

54 138 igure 4.11 Interaction effects of location and price on customer experience for department stores rom the igure 4.11 it can be seen that increase in location increases customer experience only slightly when price is low. Whereas an increase in location, increases customer experience significantly when price is high. When the price perception (promotions and loyalty programmes) of the customer is high in the case of department store a favourable location considerably increases customer experience. According to Berry et al (2002) a central location can reduce the transaction costs associated with shopping (e.g., transportation cost, time spent and effort). The retailer s favourable location coupled with loyalty programmes and other promotion can considerably increase customer experience.

55 139 Table 4.61 Two-way ANOVA of location and alternate channel on customer experience for department store Location Alternate channel Location * alternate channel a. R d =.317 (Adjusted R d =.302) As hypothesized the main effect of location on customer experience ( (3,137) =3.733, p<0.1) was supported. The interaction effect of location and experience in alternate channels on customer experience for department store as hypothesized in H 9B2 ( (3,137) =4.126,p<0.1) was supported at 10% level of significance (Table 4.61). igure 4.12 Interaction effects of location and alternate channel on customer experience for department stores rom the igure 4.12 it can be seen that increase in location increases customer experience only slightly when alternate channel

56 140 experience is low. Whereas an increase in location, increases customer experience significantly when alternate channel experience is high. A favourable location increases customer experience briskly when alternate channel experience is higher and gradually when alternate channel experience is low. Thus it can be said that a favourable location increases customer experience despite the high or low value for alternate channel experience. According to Weiss, Voss and Grewal (2003) the online channel is assessed relative to a benchmark alternative channel usually the in store experience. The retailer by focussing on a favourable location can somehow overcome the effects of alternate channels. Table 4.62 Two-way ANOVA of location and retail brand on customer experience for department store Location Retail brand Location * retail brand a. R d =.395 (Adjusted R d =.382) As hypothesized the main effect of location on customer experience ( (3,137) =5.536, p<0.1) was supported. The interaction effect of location and retail brand on customer experience for department store as hypothesized in H 9B2G ( (3,137) =4.046, p<0.1) was supported at 10% level of significance (Table 4.62).

57 141 igure 4.13 Interaction effects of location and retail brand on customer experience for department stores rom the igure 4.13 it can be seen that increase in location increases customer experience only slightly when retail brand is high. Whereas an increase in location, increases customer experience significantly when retail brand is low. A positive perception of the customer about the retail brands that are available in the department store does not change much when confronted with a favourable location. avourable location plays a major role only the brand perception of the customer is slightly lesser for the department store. Retailers therefor should engage in activities to build brand awareness and enhance brand image for the individual products that are available in the store Goals The moderating effects of goal of the customer (whether the customer is experientially oriented or task oriented) on the various determinants namely the social environment, service interface, retail atmosphere, assortment, price, customer experience in alternate channels and

58 142 retail brand are tested for department store. The main and interaction effect of goal and determinants on customer experience was tested. H 10B1 H 10B2 H 10B2A H 10B2B H 10B2C H 10B2D H 10B2E H 10B2 H 10B2G : Goal significantly influences customer experience in the case of department store. : Goal moderates the effect of the determinants on customer experience for department store. : Goal moderates the effect of the social environment on customer experience for department store. : Goal moderates the effect of the service interface on customer experience for department store. : Goal moderates the effect of the retail atmosphere on customer experience for department store. : Goal moderates the effect of the assortment on customer experience for department store. : Goal moderates the effect of the price on customer experience for department store. : Goal moderates the effect of the experience in the alternate channels on customer experience for department store. : Goal moderates the effect of the retail brand on customer experience for department store.

59 143 Table 4.63 Two-way ANOVA of goal and social environment on customer experience for department store Goal Social environment Goal * social environment a. R d =.464 (Adjusted R d =.453) As hypothesized the main effect of goal on customer experience ( (3,136) =8.568, p>0.1) was not supported. The interaction effect of goal and social environment on customer experience for department store as hypothesized in H 10B2A ( (3,136) =11.236,p>0.1) was not supported at 10% level of significance (Table 4.63). Table 4.64 Two-way ANOVA of goal and service interface on customer experience for department store Goal Service interface Goal * service interface a. R d =.267 (Adjusted R d =.250) As hypothesized the main effect of goal on customer experience ( (3,131) =6.702, p<0.1) was supported. The interaction effect of goal and service interface on customer experience for department store as hypothesized in H 10B2B ( (3,131) =5.773, p<0.1) was supported at 10% level of significance (Table 4.64).

60 144 igure 4.14 Interaction effects of goal and service interface on customer experience for department stores rom the igure 4.14 it can be seen that an increase in goal increases customer experience steadily when service interface is high. Similarly an increase in goal, increases customer experience significantly when service interface is low. An experientially oriented customer will have a higher customer experience regardless of service interface in the case of department store. Experientially oriented customers would like to browse through the store and are more likely to purchase items impulsively. Therefore, the retailer can instruct the store personnel to interact or help the customer only when explicitly asked.

61 145 Table 4.65 Two-way ANOVA of goal and atmosphere on customer experience for department store Goal Atmosphere Goal * atmosphere a. R d =.546 (Adjusted R d =.536) As hypothesized the main effect of goal on customer experience ( (3,135) =17.267, p<0.1) was supported. The interaction effect of goal and retail atmosphere on customer experience for department store as hypothesized in H 10B2C ( (3,135) =18.344,p<0.1) was supported at 10% level of significance (Table 4.65). igure 4.15 Interaction effects of goal and atmosphere on customer experience for department stores

62 146 rom the igure 4.15 it can be seen that an increase in goal increases customer experience when atmosphere is low. An increase in goal, decreases customer experience gradually when atmosphere is high. In a department store an experientially oriented customer finds that the customer experience slightly dereases when retail atmosphere is high. This may be attributed to the fact that high arousal environments cause the customer to spend more energy and time in completing the shopping trip. Therefore, the retailer can control the instore environment in such a way that it does not affect the shopper and retain moderate levels of the retail atmosphere. Table 4.66 Two-way ANOVA of goal and assortment on customer experience for department store Goal Assortment Goal * assortment a. R d =.494 (Adjusted R d =.483) As hypothesized the main effect of goal on customer experience ( (3,136) =12.788, p<0.1) was supported. The interaction effect of goal and assortment on customer experience for department store as hypothesized in H 10B2D ( (3,136) =10.041, p<0.1) was supported at 10% level of significance (Table 4.66).

63 147 igure 4.16 Interaction effects of goal and assortment on customer experience for department stores rom the igure 4.16 it can be seen that an increase in goal increases customer experience steadily when assortment is high. Similarly an increase in goal increases customer experience significantly when assortment is low. In department store, an experientially oriented customer has better experience regardless of the nature of assortment whether high or low. These customers basically derive pleasure from browsing through displays, socializing with other customers and buying impulsively the items which have caught their attention. Retailers, therefore, must understand that displaying an array of unique and quality products will ultimately catch the attention of the customers and this will go a long way to simultaneously increase cutomer experience and loyalty.

64 148 Table 4.67 Two-way ANOVA of goal and price on customer experience for department store Goal Price Goal * price a. R d =.506 (Adjusted R d =.495) As hypothesized the main effect of goal on customer experience ( (3,134) =3.435, p<0.1) was supported. The interaction effect of goal and price on customer experience for department store as hypothesized in H 10B2E ( (3,134) =3.510,p<0.1) was supported at 10% level of significance (table 4.67). igure 4.17 Interaction effects of goal and price on customer experience for department stores rom the igure 4.17 it can be seen that increase in goal increases customer experience when price is low. An increase in goal, decreases customer experience gradually when price is high.

65 149 or the experiential customers of department stores, it can be seen that price (loyalty programmes and promotions) does not feature much on their shopping agenda. They instead look at the satisfaction that can be derived intrinsically from the shopping activity itself. Retailers, therefore, should offer additional features such as experience zone where the products can be touched and tried out before purchase. This induces creativity, uniqueness and experimentation. Table 4.68 Two-way ANOVA of goal and alternate channel on customer experience for department store Goal Alternate channel Goal * alternate channel a. R d =.309 (Adjusted R d =.294) As hypothesized the main effect of goal on customer experience ( (3,137) =2.029, p>0.1) was not supported. The interaction effect of goal and experience in alternate channels on customer experience for department store as hypothesized in H 10B2 ( (3,137) =1.564, p>0.1) was not supported (Table 4.68). Table 4.69 Two-way ANOVA of goal and retail brand on customer experience for department store Goal Retail brand Goal * retail brand a. R d =.393 (Adjusted R d =.380)

66 150 As hypothesized the main effect of goal on customer experience ( (3,137) =6.481, p<0.1) was supported. The interaction effect of goal and retail brand on customer experience for department store as hypothesized in H 10B2G ( (3,137) =6.158,p<0.1) was supported at 10% level of significance (table 4.69). igure 4.18 Interaction effects of goal and retail brand on customer experience for department stores rom the igure 4.18 it can be seen that an increase in goal increases customer experience steadily when retail brand is high. Similarly an increase in goal increases customer experience significantly when retail brand is low. An experiential shopper in department store has better experience than their counterpart for the various perceptions of retail brand. The retailer, therefore, must allow the customers to form a bond with their brands by allowing them to touch and feel the merchandise before purchasing thereby providing the customers with a pleasant and comfortable environment where they can manage and learn to use products and services and also actively question without feeling the pressure to purchase.

67 Involvement The moderating effects of involvement of the customer (whether the customer involvement is high or low) on the various determinants namely the social environment, service interface, retail atmosphere, assortment, price, customer experience in alternate channels and retail brand are tested for department store. The main and interaction effect of goal and determinants on customer experience was tested. H 11B1 : Involvement significantly influences customer experience in the case of department store. H 11B2 : Involvement moderates the effect of the determinants on customer experience for department store. H 11B2A : Involvement moderates the effect of the social environment on customer experience for department store. H 11B2B : Involvement moderates the effect of the service interface on customer experience for department store. H 11B2C : Involvement moderates the effect of the retail atmosphere on customer experience for department store. H 11B2D H 11B2E : Involvement moderates the effect of the assortment on customer experience for department store for department store. : Involvement moderates the effect of the price on customer experience for department store for department store.

68 152 H 11B2 H 11B2G : Involvement moderates the effect of the experience in the alternate channels on customer experience for department store. : Involvement moderates the effect of the retail brand on customer experience for department store. Table 4.70 Two-way ANOVA of involvement and social environment on customer experience for department store Involvement Social environment Involvement * social environment a. R d =.467 (Adjusted R d =.455) As hypothesized the main effect of involvement on customer experience ( (3,136) =11.450, p<0.1) was supported. The interaction effect of involvement and social environment on customer experience for department store as hypothesized in H 11B2A ( (3,136) =7.072,p<0.1) was supported at 10% level of significance (Table 4.70). igure 4.19 Interaction effects of involvement and social environment on customer experience for department stores

69 153 rom the igure 4.19 it can be seen that an increase in involvement increases customer experience steadily when social environment is high. Similarly an increase in involvement, increases customer experience significantly when social environment is low. A highly involved customer of department store has enhanced customer experience. According to Allan (2008) due to the complex life style that customers face and increasing time pressures, they are looking for shopping as an activity that is more of entertainment and the retail store as an ideal place to hang out with their family and friends. Retailers should avoid overcrowding and should follow strategies that will attract likeminded or similar customers whose presence will not hinder the experience of the other customers. Table 4.71 Two-way ANOVA of involvement and service interface on customer experience for department store Involvement Service interface Involvement * service interface a. R d =.303 (Adjusted R d =.287) As hypothesized the main effect of involvement on customer experience ( (3,131) =0.198, p>0.1) was not supported. The interaction effect of involvement and service interface on customer experience for department store as hypothesized in H 11B2B ( (3,131) =0.370,p>0.1) was not supported (Table 4.71).

70 154 Table 4.72 Two-way ANOVA of involvement and retail atmosphere on customer experience for department store Involvement Atmosphere Involvement * atmosphere a. R d =.517 (Adjusted R d =.507) As hypothesized the main effect of involvement on customer experience ( (3,135) =1.473, p>0.1) was not supported. The interaction effect of involvement and retail atmosphere on customer experience for department store as hypothesized in H 11B2C ( (3,135) =0.154,p>0.1) was not supported (Table 4.72). Table 4.73 Two-way ANOVA of involvement and assortment on customer experience for department store Involvement Assortment Involvement * assortment a. R d =.509 (Adjusted R d =.498) As hypothesized the main effect of involvement on customer experience ( (3,136) =7.371, p<0.1) was supported. The interaction effect of involvement and assortment on customer experience for department store as hypothesized in H 11B2D ( (3,136) =2.666,p<0.1) was supported at 10% level of significance (Table 4.73).

71 155 igure 4.20 Interaction effects of involvement and assortment on customer experience for department stores rom the igure 4.20 it can be seen that an increase in involvement increases customer experience when assortment is high. Similarly an increase in involvement increases customer experience significantly when assortment is low. In the case of department stores, a high involvement increases customer experience regardless of the type of the category of assortment. The previous research also suggests that stores that have unique merchandise offerings, have an advantage of attracting high involvement customers. Retailers, therefore, to cater to this segment should offer customers with a rich variety and quality products that are unique in some aspect so that their experience is enriched.

72 156 Table 4.74 Two-way ANOVA of involvement and price on customer experience for department store Involvement Price Involvement * price a. R d =.528 (Adjusted R d =.518) As hypothesized the main effect of involvement on customer experience ( (3,134) =5.506, p<0.1) was supported. The interaction effect of involvement and price on customer experience for department store as hypothesized in H 11B2E ( (3,134) =2.780,p<0.1) was not supported at 10% level of significance (Table 4.74). Table 4.75 Two-way ANOVA of involvement and alternate channel on customer experience for department store Involvement Alternate channel Involvement * alternate channel a. R d =.384 (Adjusted R d =.371) As hypothesized the main effect of involvement on customer experience ( (3,137) =0.609, p>0.1) was not supported. The interaction effect of involvement and experience in alternate channels on customer experience for department store as hypothesized in H 11B2 ( (3,134) =4.605,p<0.1) was supported at 10% level of significance (Table 4.75).

73 157 igure 4.21 Interaction effects of involvement and alternate channel on customer experience for department stores rom the igure 4.21 it can be seen that an increase in involvement increases customer experience when alternate channel is high. Similarly an increase in involvement, increases customer experience significantly when alternate channel is low. In the case of department store a high involvement customer encounters better customer experience for the different levels of experience in the alternate channels. According to Tsiotsou et al (2010), retailers should use their alternate channels to increase their communication with customers, improve interpersonal relationships (for example, communicate online, ask customers their opinion about product / services and the website), increase transactions (for example, sell products, product demonstrations and make product orders available) and embrace innovations to increase internet marketing efficiency and effectiveness.

74 158 Table 4.76 Two-way ANOVA of involvement and retail brand on customer experience for department store Involvement Retail brand Involvement * retail brand a. R d =.437 (Adjusted R d =.424) As hypothesized the main effect of involvement on customer experience ( (3,137) = , p<0.1) was supported. The interaction effect of involvement and retail brand on customer experience for department store as hypothesized in H 11B2G ( (3,137) =5.255,p<0.1) was supported at 10% level of significance (table 4.76). igure 4.22 Interaction effects of involvement and retail brand on customer experience for department stores rom the igure 4.22 it can be seen that an increase in involvement increases customer experience when retail brand is high. Similarly an increase in involvement increases customer experience significantly when retail brand is low.

75 159 In the case of department store a high involvement customer encounters better customer experience for the different levels of perception about the retail brand. Therefore, the retailer must display brands which are familiar and trustworthy to the customer, so that it can significantly impact their experience by communicating the product quality and the various features associated with it Summary Department Store Regression analysis was carried out to identify the most significant contributors to customer experience. Social environment, retail atmosphere and price are the significant antecedents of customer experience in the case of department stores.general linear method was used to study the effects of moderator on the relationship between the determinamt and customer experience. Significant interaction effect exists between location and retail atmosphere, location and price, location and alternate channel experience and also between location and retail brand. Significant interaction effect exists between goal and all other determinants other than social environment and experience in the alternate channel. Interaction effects exist between involvement and social environment, involvement and assortment, involvement and retail brand and also between involvement and alternate channel experience. 4.9 HYPERMARKET Hypermarkets are very huge shopping areas where the customer can buy groceries, food, garments, home appliances, durables, toys, cosmetics, toiletries, books and music at a price that is always lower than the market price by 5-50 percent. Some of the popular hypermarkets in Chennai are Big Bazaar, Star Bazaar, Saravana Stores and Auchan. The descriptive

76 160 characteristics of the data for the hypermarket are given below in the Table Table 4.77 Constructs, mean and standard deviation for hypermarket. Construct Std. Deviation Statistic Std. Error Statistic Customer experience Past experience Atmosphere Assortment Price Service interface Social environment Retail brand Alternate channel experience Regression Result for Customer Experience in Hypermarket The following hypotheses were tested: H 1C : In hypermarket Social environment will significantly influence the experience of the retail customers. H 2C : In hypermarket Service interface will significantly influence the experience of the retail customers. H 3C : In hypermarket Retail atmosphere will significantly influence the experience of the retail customers. H 4C : In hypermarket Assortment will significantly influence the experience of the retail customers.

77 161 H 5C : In hypermarket Price will significantly influence the experience of the retail customers. H 6C : In hypermarket Experience in alternate channels will significantly influence the experience of the retail customers. H 7C : In hypermarket Retail brand will significantly influence the experience of the retail customers. H 8C : In hypermarket previous customer experience will significantly influence the experience of the retail customers. The generalized equation for regression is CE= a + 1 SE + 2 SI + 3 RA + 4 AS + 5 PR + 6 AC + 7 RB+ 8 PE Table 4.78 Summary of regression models for determinants and customer experience for hypermarket Model R R Adjusted R Std. Error of the Estimate The result of the multiple regression using enter method as in Table 4.78 and Table 4.79, shows that overall model for hypermarket yielded a significant statistic (=54.552, p<0.000) and adjusted R 2 =0.698, explained by social environment, service interface, retail atmosphere, assortment, price, experience in alternate channels, retail brand and previous customer experience.

78 162 Table 4.79 Model significance for hypermarket Model Sum Regression a Residual Total As hypothesized social environment is significantly influencing customer experience ( =0.250, p<0.05) thus supporting the hypothesis H 1C. Assortment is significantly influencing customer experience ( =0.197, p<0.05) thus supporting the hypothesis H 4C. Alternate channel experience is significantly influencing customer experience ( =0.167, p<0.05) thus supporting the hypothesis H 6C. Previous experience is significantly influencing customer experience ( =0.429, p<0.05) thus supporting the hypothesis H 8C and it is the strongest determinant of customer experience. The outcomes are summed up in Table Hypermarket occupies a large square feet of area and deals with a multitude of products under all categories. Social environment, Assortment, alternate channel experience and past experience are the significant contributors to the experience of the customer. Crowds can be managed by adding additional billing counters thereby reducing the amount of waiting time and improving the experience of the customers. Auchan, the hypermarket, promoted by the Landmark group occupies nearly one lakh square foot of area and has fourty three billing counters in order to provide a better shopping experience. A wide range of products would enable the customer to ideally find the product that best suits their need. Private label products in popular categories at significantly lower prices will ensure customer loyalty. Convienience is an important aspect of shopping hence customers seeks alternate channels for shopping. Therefore, a significant online presence of the retailer can add to the experience of the customer. Big

79 163 Bazaar has an online presence where the customers can get information as well as order online. Previous experience enables the customer to be familiar with the store design and billing process, this enables them to quickly navigate and accomplish the task. The equation for hypermarkets can now be constructed as CE (HM) = SE AS AC PE Table 4.80 Predictor effects and estimates for determinants on customer experience for hypermarket Model Unstandardized Coefficients B Std. Error Beta Standardized Coefficients t (Constant) Past experience Atmosphere Assortment Price Service interface Social environment Retail brand Alternate experience channel The regression residue distribution is checked for normality by using histogram and PP chart and found to be satisfactory as in igure 4.23 and igure The regression variate is found to meet the assumption of normality.

80 164 igure 4.23 Residue distributions for hypermarket igure 4.24 P-P plot residue distributions for hypermarket Moderating Effect Moderator models are used to examine when an independent variable influences a dependent variable. That is, moderated models are used to identify factors that change the relationship between independent and dependent variables. General linear method was performed on customer experience, the determinants and the moderator Location The moderating effects of the situation moderator namely location on the various determinants namely the social environment, service interface, retail atmosphere, assortment, price, customer experience in alternate

81 165 channels and retail brand are tested for hypermarket. The main and interaction effect of location and determinants on customer experience was tested. H 9C1 H 9C2 H 9C2A H 9C2B H 9C2C H 9C2D H 9C2E H 9C2 H 9C2G : Location significantly influences customer experience in the case of hypermarket. : Location moderates the effect of the determinants on customer experience for hypermarket. : Location moderates the effect of the social environment on customer experience for hypermarket. : Location moderates the effect of the service interface on customer experience for hypermarket. : Location moderates the effect of the retail atmosphere on customer experience for hypermarket. : Location moderates the effect of the assortment on customer experience for hypermarket. : Location moderates the effect of the price on customer experience for hypermarket. : Location moderates the effect of the experience in the alternate channels on customer experience for hypermarket. : Location moderates the effect of the retail brand on customer experience for hypermarket.

82 166 Table 4.81 Two-way ANOVA of location and social environment on customer experience for hypermarket Location Social environment Location * social environment a. R d =.601 (Adjusted R d =.594) As hypothesized the main effect of location on customer experience ( (3,187) =49.623, p<0.1) was supported. The interaction effect of location and social environment on customer experience for hypermarket as hypothesized in H 9C2A ( (3,187) =30.032,p<0.1) was supported at 10% level of significance (Table 4.81). igure 4.25 Interaction effects of location and social environment on customer experience for hypermarket rom the igure 4.25 it can be seen that an increase in location increases customer experience when social environment is high. Whereas an increase in location increases customer experience significantly when social environment is low.

83 167 A favourable location in the case of hypermarket notably increases customer experience for the different values of social environment. Hypermarkets, though they require huge space, should be ideally located at the centre of the city which there by increases the experience of the customer. A prime location is convienient to the customer and further has significant impact on the experience which in turn impacts loyalty and repatronage intensions. Table 4.82 Two-way ANOVA of location and service interface on customer experience for hypermarket Location Service interface Location * service interface a. R d =.429 (Adjusted R d =.420) As hypothesized the main effect of location on customer experience ( (3,189) =2.695, p>0.1) was not supported. The interaction effect of location and service interface on customer experience for hypermarket as hypothesized in H 9C2B ( (3,189) =0.095, p>0.1) was not supported (Table 4.82). Table 4.83 Two-way ANOVA of location and retail atmosphere on customer experience for hypermarket of s Location Atmosphere Location * atmosphere a. R d =.465 (Adjusted R d =.457)

84 168 As hypothesized the main effect of location on customer experience ( (3,189) =42.458, p<0.1) was supported. The interaction effect of location and retail atmosphere on customer experience for hypermarket as hypothesized in H 9C2C ( (3,189) =17.963, p<0.1) was supported at 10% level of significance (Table 4.83). igure 4.26 Interaction effects of location and atmosphere on customer experience for hypermarket rom the igure 4.26 it can be seen that an increase in location increases customer experience when atmosphere is high. Whereas an increase in location, increases customer experience when atmosphere is low. Thus it can be seen that when the hypermarket is located at a favourable location, customer experience is greater regardless of the value of atmosphere. The retailer must pay significant attention to the locational aspect of the hypermarket. A favourable location increases the convienience of the customer who is otherwise deprived of time, under such circumstances the ability of the retailer to stay put in a particularly favourable location (either at the center of the city or at an accessible place) can easily conceal the differences in the retail atmosphere of the store to a greater extent.

85 169 Table 4.84 Two-way ANOVA of location and assortment on customer experience for hypermarket Location Assortment Location * assortment a. R d =.535 (Adjusted R d =.527) As hypothesized the main effect of location on customer experience ( (3,189) =14.514, p<0.1) was supported. The interaction effect of location and assortment on customer experience for hypermarket as hypothesized in H 9C2D ( (3,189) =6.078, p<0.1) was supported at 10% level of significance (table 4.84). igure 4.27 Interaction effects of location and assortment on customer experience for hypermarket rom the igure 4.27 it can be seen that increase in location increases customer experience when assortment is high. Whereas an increase in location, increases customer experience when assortment is low. In the case of hypermarket it is seen that a favourable location enhances customer experience by surpassing the effects of assortment.

86 170 Hypermarket is seen as a format which usually stocks huge variety of products at different quality in order to satisfy different categories of people. But results show that a favourable location can actually override the importance of the assortment levels and enhance customer experience. Retailers must locate their stores at areas perceived to be conveniently accessible and thereby reducing the time and effort costs of the customer. Table 4.85 Two-way ANOVA of location and price on customer experience for hypermarket Location Price Location * price a. R d =.511 (Adjusted R d =.503) As hypothesized the main effect of location on customer experience ( (3,189) =4.051, p<0.1) was supported. The interaction effect of location and price on customer experience for hypermarket as hypothesized in H 9C2E ( (3,189) =0.240,p>0.1) was not supported (table 4.85). Table 4.86 Two-way ANOVA of location and alternate channel on customer experience for hypermarket location Alternate channel Location * alternate channel a. R d =.489 (Adjusted R d =.480) As hypothesized the main effect of location on customer experience ( (3,189) =0.997, p>0.1) was not supported. The interaction effect of location and experience in alternate channels on customer experience for hypermarket

87 171 as hypothesized in H 9C2 ( (3,189) =0.832, p>0.1) was not supported (Table 4.86). Table 4.87 Two-way ANOVA of location and retail brand on customer experience for hypermarket Location Retail brand Location * retail brand a. R d =.560 (Adjusted R d =.553) As hypothesized the main effect of location on customer experience ( (3,184) =4.601, p<0.1) was supported. The interaction effect of location and retail brand on customer experience for hypermarket as hypothesized in H 9C2G ( (3,184) =0.681, p>0.1) was not supported (Table 4.87) Goals The moderating effects of goal of the customer (whether the customer is experientially oriented or task oriented) on the various determinants namely the social environment, service interface, retail atmosphere, assortment, price, customer experience in alternate channels and retail brand are tested for hypermarket. The main and interaction effect of goal and determinants on customer experience was tested. H 10C1 : Goal significantly influences customer experience in the case of hypermarket. H 10C2 : Goal moderates the effect of the determinants on customer experience for hypermarket.

88 172 H 10C2A : Goal moderates the effect of the social environment on customer experience for hypermarket. H 10C2B : Goal moderates the effect of the service interface on customer experience for hypermarket. H 10C2C : Goal moderates the effect of the retail atmosphere on customer experience for hypermarket. H 10C2D : Goal moderates the effect of the assortment on customer experience for hypermarket. H 10C2E : Goal moderates the effect of the price on customer experience for hypermarket. H 10C2 : Goal moderates the effect of the experience in the alternate channels on customer experience for hypermarket. H 10C2G : Goal moderates the effect of the retail brand on customer experience for hypermarket. Table 4.88 Two-way ANOVA of goal and social environment on customer experience for hypermarket Goal Social environment Goal * social environment a. R d =.462 (Adjusted R d =.453)

89 173 As hypothesized the main effect of goal on customer experience ( (3,187) =0.861, p>0.1) was not supported. The interaction effect of goal and social environment on customer experience for hypermarket as hypothesized in H 10C2A ( (3,187) =0.565,p>0.1) was not supported (Table 4.88). Table 4.89 Two-way ANOVA of goal and service interface on customer experience for hypermarket Goal Service interface Goal * service interface a. R d =.255 (Adjusted R d =.243) As hypothesized the main effect of goal on customer experience ( (3,189) =0.570, p>0.1) was not supported. The interaction effect of goal and service interface on customer experience for hypermarket as hypothesized in H 10C2B ( (3,189) =0.160, p>0.1) was not supported (Table 4.89). Table 4.90 Two-way ANOVA of goal and atmosphere on customer experience for hypermarket Goal Atmosphere Goal * atmosphere a. R d =.249 (Adjusted R d =.237) As hypothesized the main effect of goal on customer experience ( (3,189) =6.920, p<0.1) was supported. The interaction effect of goal and retail atmosphere on customer experience for hypermarket as hypothesized in

90 174 H 10C2C ( (3,189) =8.564,p<0.1) was supported at 10% level of significance (Table 4.90). igure 4.28 Interaction effects of goal and retail atmosphere on customer experience for hypermarket rom the igure 4.28 it can be seen that when goal of the customer is experiential it gradually decreases the customer experience when atmosphere is high. On the contrary when goal of the customer is experiential it increases customer experience when the atmosphere is low. In the case of hypermarkets, it is seen that for an experientially oriented customer the experience at the store gradually decreases. The above may be attributed to the fact that an experiential customer looks forward to browse through the store, the vast array of products that are available and the offers/discounts that can be obtained. The retailer, therefore, needs to ensure that atmosphere of the hypermarket is kept at the acceptable level and sufficient importance is given to the other factors lower prices, wider assortment and availability of private brands that are deemed to be important by the customer.

91 175 Table 4.91 Two-way ANOVA of goal and assortment on customer experience for hypermarket Goal Assortment Goal * assortment a. R d =.441 (Adjusted R d =.432) As hypothesized the main effect of goal on customer experience ( (3,189) =1.202, p>0.1) was not supported. The interaction effect of goal and assortment on customer experience for hypermarket as hypothesized in H 10C2D ( (3,189) =0.934,p>0.1) was not supported (Table 4.91). Table 4.92 Two-way ANOVA of goal and price on customer experience for hypermarket Goal Price Goal * price a. R d =.406 (Adjusted R d =.397) As hypothesized the main effect of goal on customer experience ( (3,189) =2.632, p>0.1) was not supported. The interaction effect of goal and price on customer experience for hypermarket as hypothesized in H 10C2E ( (3,189) =1.946,p>0.1) was not supported (Table 4.92).

92 176 Table 4.93 Two-way ANOVA of goal and alternate channel on customer experience for hypermarket Goal Alternate channel Goal * alternate channel a. R d =.388 (Adjusted R d =.378) As hypothesized the main effect of goal on customer experience ( (3,189) =0.572, p>0.1) was not supported. The interaction effect of goal and experience in alternate channels on customer experience for hypermarket as hypothesized in H 10C2 ( (3,189) =0.806, p>0.1) was not supported (Table 4.93). Table 4.94 Two-way ANOVA of goal and retail brand on customer experience for hypermarket Goal Retail brand Goal * retail brand a. R d =.469 (Adjusted R d =.460) As hypothesized the main effect of goal on customer experience ( (3,184) =0.031, p>0.1) was not supported. The interaction effect of goal and retail brand on customer experience for hypermarket as hypothesized in H 10C2G ( (3,184) =0.031, p>0.1) was not supported (Table 4.94) Involvement The moderating effects of involvement of the customer (whether the customer involvement is high or low) on the various determinants namely

93 177 the social environment, service interface, retail atmosphere, assortment, price, customer experience in alternate channels and retail brand are tested for hypermarket. The main and interaction effect of goal and determinants on customer experience was tested. H 11C1 : Involvement significantly influences customer experience in the case of hypermarket. H 11C2 : Involvement moderates the effect of the determinants on customer experience for hypermarket. H 11C2A : Involvement moderates the effect of the social environment on customer experience for hypermarket. H 11C2B : Involvement moderates the effect of the service interface on customer experience for hypermarket. H 11C2C : Involvement moderates the effect of the retail atmosphere on customer experience for hypermarket. H 11C2D H 11C2E H 11C2 H 11C2G : Involvement moderates the effect of the assortment on customer experience for department store for hypermarket. : Involvement moderates the effect of the price on customer experience for department store for hypermarket. : Involvement moderates the effect of the experience in the alternate channels on customer experience for hypermarket. : Involvement moderates the effect of the retail brand on customer experience for hypermarket.

94 178 Table 4.95 Two-way ANOVA of involvement and social environment on customer experience for hypermarket Involvement Social environment Involvement * social environment a. R d =.641 (Adjusted R d =.635) As hypothesized the main effect of involvement on customer experience ( (3,187) =37.924, p<0.1) was supported. The interaction effect of involvement and social environment on customer experience for hypermarket as hypothesized in H 11C2A ( (3,187) =11.269, p>0.1) was not supported at 10% level of significancce (Table 4.95). Table 4.96 Two-way ANOVA of involvement and service interface on customer experience for hypermarket Involvement Service interface Involvement * service interface a. R d =.526 (Adjusted R d =.518) As hypothesized the main effect of involvement on customer experience ( (3,189) =4.923, p<0.1) was supported. The interaction effect of involvement and service interface on customer experience for hypermarket as hypothesized in H 11C2B ( (3,187) =0.421,p>0.1) was not supported (Table 4.96).

95 179 Table 4.97 Two-way ANOVA of involvement and retail atmosphere on customer experience for hypermarket of s Involvement Atmosphere Involvement * atmosphere a. R d =.595 (Adjusted R d =.589) As hypothesized the main effect of involvement on customer experience ( (3,189) =2.312, p>0.1) was not supported. The interaction effect of involvement and retail atmosphere on customer experience for hypermarket as hypothesized in H 11C2C ( (3,189) =29.747,p<0.1) was supported at 10% level of significance (Table 4.97) Interaction effects of involvement and retail atmosphere on customer experience for hypermarket

96 180 rom the igure 4.29 it can be seen that increase in involvement increases customer experience when atmosphere is high. Increase in involvement increases customer experience when atmosphere is low. In the case of hypermarket it can be seen that high involvement customers have higher customer experience for the various values of atmosphere. High involvement customers due to their interest in shopping would have already gained an overview/insight even before visiting the store and would have formed an opinion based on the existing information. Therefore, the retailer should make sure that the layout and design of the store are such that these customers would be able to find their way around and can locate the desired products quickly and easily. Table 4.98 Two-way ANOVA of involvement and assortment on customer experience for hypermarket Involvement Assortment Involvement * assortment a. R d =.573 (Adjusted R d =.567) As hypothesized the main effect of involvement on customer experience ( (3,189) =5.512, p<0.1) was supported. The interaction effect of involvement and assortment on customer experience for hypermarket as hypothesized in H 11C2D ( (3,189) =0.045, p>0.1) was not supported (Table 4.98).

97 181 Table 4.99 Two-way ANOVA of involvement and price on customer experience for hypermarket Involvement Price Involvement * price a. R d =.573 (Adjusted R d =.566) As hypothesized the main effect of involvement on customer experience ( (3,189) =7.233, p<0.1) was supported. The interaction effect of involvement and price on customer experience for hypermarket as hypothesized in H 11C2E ( (3,189) =0.157, p>0.1) was not supported (Table 4.99). Table Two-way ANOVA of involvement and alternate channels on customer experience for hypermarket Involvement Alternate channels Involvement * alternate channels a. R d =.567 (Adjusted R d =.560) As hypothesized the main effect of involvement on customer experience ( (3,189) =17.606, p<0.1) was supported. The interaction effect of involvement and experience in alternate channels on customer experience for hypermarket as hypothesized in H 11C2 ( (3,189) =1.458, p>0.1) was not supported (Table 4.100).

98 182 Table Two-way ANOVA of involvement and retail brand on customer experience for hypermarket Involvement Retail brand Involvement * retail brand a. R d =.605 (Adjusted R d =.599) As hypothesized the main effect of involvement on customer experience ( (3,184) =6.233, p>0.1) was not supported. The interaction effect of involvement and retail brand on customer experience for hypermarket as hypothesized in H 11C2G ( (3,184) =0.233, p>0.1) was not supported (Table 4.101) Summary Hypermarket Regression analysis was carried out to identify the most significant contributors to customer experience. Social environment, assortment, alternate channel experience and past experience are the significant antecedents of customer experience in the case of hypermarket. General linear method was used to study the effects of moderator on the relationship between the determinamt and customer experience. Significant interaction effect exists between location and social environment, location and retail atmosphere and also between location and assortment. Significant interaction effect exists between goal and retail atmosphere. Interaction effects exist between involvement and retail atmosphere.

99 MALLS Malls are large forms of retailing with area ranging from sqft to and above sqft. It provides ideal shopping experiences with products, services and entertainment under one common roof. Examples of malls in Chennai city are Spencer s (which is one of the oldest and biggest malls in the country), Express Avenue, Ampa Skywalk, orum Vijaya and Phoenix MarketCity. The descriptive characteristics of the data for the mall are given below in the Table Table Constructs, mean and standard deviation for mall Construct Std. Deviation Statistic Std. Error Statistic Customer experience Past experience Atmosphere Assortment Price Service interface Social environment Retail brand Alternate channel experience Regression Result for Customer Experience in Malls The following hypotheses were tested: H 1D : In mall Social environment will significantly influence the experience of the retail customers. H 2D : In mall Service interface will significantly influence the experience of the retail customers.

100 184 H 3D : In mall Retail atmosphere will significantly influence the experience of the retail customers. H 4D : In mall Assortment will significantly influence the experience of the retail customers. H 5D : In mall Price will significantly influence the experience of the retail customers. H 6D : In mall Experience in alternate channels will significantly influence the experience of the retail customers. H 7D : In mall Retail brand will significantly influence the experience of the retail customers. H 8D : In mall previous customer experience will significantly influence the experience of the retail customers. The generalized equation for regression is CE= a + 1 SE + 2 SI + 3 RA + 4 AS + 5 PR + 6 AC + 7 RB+ 8 PE Table Summary of regression models for determinants and customer experience for mall Model R R Adjusted R Std. Error of the Estimate a The result of the multiple regression using enter method as in Table and Table 4.104, shows that overall model for mall yielded a significant statistic (=34.992, p<0.000) and adjusted R 2 =0.591, explained by social environment, service interface, retail atmosphere, assortment, price,

101 185 experience in alternate channels, retail brand and previous customer experience. Table Model significance for mall Model Sum of s Regression a Residual Total As hypothesized social environment is significantly influencing customer experience ( =0.173, p<0.05) thus supporting the hypothesis H 1D. Atmosphere is significantly influencing customer experience ( =0.494, p<0.05) thus supporting the hypothesis H 3D and it is the strongest determinant of customer experience. Price is significantly influencing customer experience ( =0.163, p<0.05) thus supporting the hypothesis H 5D. Retail brand is significantly influencing customer experience ( =0.252, p<0.05) thus supporting the hypothesis H 7D. Previous experience is significantly influencing customer experience ( =0.211, p<0.05) thus supporting the hypothesis H 8D. The outcomes are summed up in table Mall is a place where shopping, dining and entertainment options are combined into a single entity for the entire family. Social environment, atmosphere, price, retail brand and previous experience contribute significantly to the experience of the customer. Malls can be designed to attract similar customers, for example the variety of retail shops at the malls can be decided based on the target audience. orum Vijaya mall has positioned itself to provide a positive experience to the middle and upper middle class customers by selecting categories and brands which appeal to the target group. Atmosphere is important since customers entering a mall not

102 186 just look to complete their task but also relax and spend time with family or friends. Customer looks out for loyalty programmes such as bonus cards, coupons and discounts at the mall. Such activities help to reduce the perception that products/services at the mall are highly costlier than other formats thereby increasing customer experience. Presence of multiple and prominent brands at a single place for the entire family essentially creates a positive impression. Previous experience increases familiarity about the arrangement of shops, food and entertainment options that are available at the mall and this enables the customer to have a better experience. The equation for mall can now be constructed as CE (M) = SE RA PR RB PE Table Predictor effects and estimates for determinants on customer experience for mall Model Unstandardized Coefficients B Std. Error Beta Standardized Coefficients t (Constant) Past experience Atmosphere Assortment Price Service interface Social environment Retail brand Alternate channel experience The regression residue distribution is checked for normality by using histogram and PP chart and found to be satisfactory as in figure 4.30

103 187 and igure The regression variate is found to meet the assumption of normality. igure 4.30 Residue distributions for malls igure 4.31 P-P plot residue distributions for malls Moderating Effect Moderator models are used to examine when an independent variable influences a dependent variable. That is, moderated models are used to identify factors that change the relationship between independent and dependent variables. General linear method was performed on customer experience, the determinants and the moderator.

104 Location The moderating effects of the situation moderator namely location on the various determinants namely the social environment, service interface, retail atmosphere, assortment, price, customer experience in alternate channels and retail brand are tested for mall. The main and interaction effect of location and determinants on customer experience was tested. H 9D1 H 9D2 H 9D2A H 9D2B H 9D2C H 9D2D H 9D2E H 9D2 H 9D2G : Location significantly influences customer experience in the case of mall. : Location moderates the effect of the determinants on customer experience for mall. : Location moderates the effect of the social environment on customer experience for mall. : Location moderates the effect of the service interface on customer experience for mall. : Location moderates the effect of the retail atmosphere on customer experience for mall. : Location moderates the effect of the assortment on customer experience for mall. : Location moderates the effect of the price on customer experience for mall. : Location moderates the effect of the experience in the alternate channels on customer experience for mall. : Location moderates the effect of the retail brand on customer experience for mall.

105 189 Table Two-way ANOVA of location and social environment on customer experience for mall Location Social environment Location * social environment a. R d =.449 (Adjusted R d =.441) As hypothesized the main effect of location on customer experience ( (3,195) =31.528, p<0.1) was supported. The interaction effect of location and social environment on customer experience for mall as hypothesized in H 9D2A ( (3,195) =23.929,p<0.1) was supported at 10% level of significance (Table 4.106). igure 4.32 Interaction effects of location and social environment on customer experience for malls rom the igure 4.32 it can be seen that an increase in location increases customer experience when social environment is low. Whereas an increase in location, decreases customer experience when social environment is high.

106 190 In the case of mall a favourable location enhances customer experience when perception about social environment is low. This may be due to the fact that although a mall is crowded or is not highly rated by the peer groups the central location and easy accessibility can significantly increase customer experience. On the contrary when location is favourable and social environment is high customer experience decreases. This may be attributed to the fact that the mall is usually looked at as a place of fun and entertainment where people prefer to socialise and enjoy along with family and friends but crowding at the malls may corrode the experience. Therefore, the retailer should organise events such as happy shopping hours where discounts are given and can help control crowds at peak times. Table Two-way ANOVA of location and service interface on customer experience for mall Location Service interface Location* Service interface a. R d =.451 (Adjusted R d =.443) As hypothesized the main effect of location on customer experience ( (3,201) =11.726, p<0.1) was supported. The interaction effect of location and service interface on customer experience for mall as hypothesized in H 9D2B ( (3,201) =5.012,p<0.1) was supported at 10% level of significance (Table 4.107).

107 191 igure 4.33 Interaction effects of location and service interface on customer experience for malls rom the igure 4.33 it can be seen that an increase in location increases customer experience when service interface is high. Similarly an increase in location, increases customer experience when service interface is low. In the case of malls a favourable location increases the customer experience for the various values of service interface. Customers are faced with various challenges each day; have demanding lifestyles and face extreme time pressures. They thus seek malls which are conveniently located and most of all easily accessible. The ability of the retailer to stay put in a particularly favourable location (either at the centre of the city or at an accessible place) can easily conceal the differences in the service interface of the mall to a greater extent.

108 192 Table Two-way ANOVA of location and retail atmosphere on customer experience for mall Location Atmosphere Location * atmosphere a. R d =.586 (Adjusted R d =.580) As hypothesized the main effect of location on customer experience ( (3,197) =23.780, p<0.1) was supported. The interaction effect of location and retail atmosphere on customer experience for mall as hypothesized in H 9D2C ( (3,197) =14.377,p<0.1) was supported at 10% level of significance (Table 4.108). igure 4.34 Interaction effects of location and atmosphere on customer experience for malls rom the igure 4.34 it can be seen that an increase in location increases customer experience when atmosphere is high. Similarly an increase in location, increases customer experience when atmosphere is low.

109 193 A favourable location of the mall increases the customer experience for the various values of atmosphere. A pleasant retail atmosphere is one of the most important basic attributes that affects customer experience in any retail format. In the case of mall it is seen that a favourable location can simpy override the importance of atmosphere and affect customer experience. Therefore, retailers have to select effective and efficient store locations. They have to establish outlets within the main central shopping areas so that it is accessible to all consumers. Table Two-way ANOVA of location and assortment on customer experience for mall Location Assortment Location * assortment a. R d =.439 (Adjusted R d =.431) As hypothesized the main effect of location on customer experience ( (3,195) =18.805, p<0.1) was supported. The interaction effect of location and assortment on customer experience for mall as hypothesized in H 9D2D ( (3,195) =10.396,p<0.1) was supported at 10% level of significance (Table 4.109). rom the igure 4.35 it can be seen that an increase in location increases customer experience when assortment is high. Similarly an increase in location, increases customer experience when assortment is low.

110 194 igure 4.35 Interaction effects of location and assortment on customer experience for malls In the case of malls a favourable location of the mall significantly increases the customer experience regardless of whether the assortment is perceived high or low. A favourable location can actually conceal the shortcoming of the variety/quality of the merchandise that is actually available in the mall. The most common issues of customers are travelling followed by convenience. This emphasises the importance of location and accessibility for retailers because situating a store in a popular location which is considered convenient by customers relative to other retail stores attracts customers even if their attitude towards the assortment available is not particularly positive.

111 195 Table Two-way ANOVA of location and price on customer experience for mall Location Price Location * price a. R d =.411 (Adjusted R d =.402) As hypothesized the main effect of location on customer experience ( (3,201) =6.447, p<0.1) was supported. The interaction effect of location and price on customer experience for mall as hypothesized in H 9D2E ( (3,201) =2.053,p>0.1) was not supported (Table 4.110). Table Two-way ANOVA of location and alternate channel on customer experience for mall Location Alternate channel Location * alternate channel a. R d =.376 (Adjusted R d =.367) As hypothesized the main effect of location on customer experience ( (3,197) =24.115, p<0.1) was supported. The interaction effect of location and experience in alternate channels on customer experience for mall as hypothesized in H 9D2 ( (3,197) =11.849, p<0.1) was supported at 10% level of significance (Table 4.111).

112 196 igure 4.36 Interaction effects of location and alternate channel on customer experience for malls rom the igure 4.36 it can be seen that an increase in location increases customer experience when alternate channel experience is high. Similarly an increase in location increases customer experience when alternate channel experience is low. The differerent values of alternate channel experience result in an enhanced customer experience when the mall is located in a favourable location. According to Weiss, Voss and Grewal (2003), the online channel is assessed relative to a benchmark alternative channel usually the in store experience. The retailer by focussing on a favourable location can somehow overcome the effects of alternate channels. Table Two-way ANOVA of location and retail brand on customer experience for mall Location Retail brand Location * retail brand a. R d =.457 (Adjusted R d =.449)

113 197 As hypothesized the main effect of location on customer experience ( (3,201) =38.849, p<0.1) was supported. The interaction effect of location and retail brand on customer experience for mall as hypothesized in H 9D2G ( (3,201) =26.319,p<0.1) was supported at 10% level of significance (table 4.112). igure 4.37 Interaction effects of location and retail brand on customer experience for malls rom the igure 4.37 it can be seen that an increase in location increases customer experience when retail brand is high. Similarly an increase in location, increases customer experience when retail brand is low. A favourable location of the mall increases customer experience for the various levels of retail brand. Thus it can be seen that when the location of the mall is favourable customer experience is greater although the atmosphere of the store is low. Convenience is the key for customers who are deprived of time, under such circumstances the ability of the retailer to stay put in a particularly favourable location (either at the centre of the city or at an accessible place) can easily conceal the differences in the retail brands of the store to a greater extent.

114 Goals The moderating effects of goal of the customer (whether the customer is experientially oriented or task oriented) on the various determinants namely the social environment, service interface, retail atmosphere, assortment, price, customer experience in alternate channels and retail brand are tested for mall. The main and interaction effect of goal and determinants on customer experience was tested. H 10D1 H 10D2 H 10D2A H 10D2B H 10D2C H 10D2D H 10D2E H 10D2 H 10D2G : Goal significantly influences customer experience in the case of mall. : Goal moderates the effect of the determinants on customer experience for mall. : Goal moderates the effect of the social environment on customer experience for mall. : Goal moderates the effect of the service interface on customer experience for mall. : Goal moderates the effect of the retail atmosphere on customer experience for mall. : Goal moderates the effect of the assortment on customer experience for mall. : Goal moderates the effect of the price on customer experience for mall. : Goal moderates the effect of the experience in the alternate channels on customer experience for mall. : Goal moderates the effect of the retail brand on customer experience for mall.

115 199 Table Two-way ANOVA of goal and social environment on customer experience for mall Goal Social environment Goal * social environment a. R d =.342 (Adjusted R d =.332) As hypothesized the main effect of goal on customer experience ( (3,195) =0.690, p>0.1) was not supported. The interaction effect of goal and social environment on customer experience for mall as hypothesized in H 10D2A ( (3,195) =0.421,p>0.1) was not supported (Table 4.113). Table Two-way ANOVA of goal and service interface on customer experience for mall Goal Service interface Goal * service interface a. R d =.344 (Adjusted R d =.335) As hypothesized the main effect of goal on customer experience ( (3,201) =0.009, p>0.1) was not supported. The interaction effect of goal and service interface on customer experience for mall as hypothesized in H 10D2B ( (3,201) =0.120,p>0.1) was not supported (Table 4.114).

116 200 Table Two-way ANOVA of goal and retail atmosphere on customer experience for mall Goal Atmosphere Goal * atmosphere a. R d =.500 (Adjusted R d =.493) As hypothesized the main effect of goal on customer experience ( (3,197) =0.173, p>0.1) was not supported. The interaction effect of goal and retail atmosphere on customer experience for mall as hypothesized in H 10D2C ( (3,197) =0.560,p>0.1) was not supported (Table 4.115). Table Two-way ANOVA of goal and assortment on customer experience for mall of s Goal Assortment Goal * assortment a. R d =.315 (Adjusted R d =.305) As hypothesized the main effect of goal on customer experience ( (3,195) =0.322, p>0.1) was not supported. The interaction effect of goal and assortment on customer experience for mall as hypothesized in H 10D2D ( (3,195) =0.338,p>0.1) was not supported (Table 4.116).

117 201 Table Two-way ANOVA of goal and price on customer experience for mall Goal Price Goal * price a. R d =.341 (Adjusted R d =.332) As hypothesized the main effect of goal on customer experience ( (3,201) =5.494, p<0.1) was supported. The interaction effect of goal and price on customer experience for mall as hypothesized in H 10D2E ( (3,201) =4.630,p<0.1) was supported at 10% level of significance (Table 4.117). igure 4.38 Interaction effects of goal and price on customer experience for malls rom the igure 4.38 it can be seen that increase in goal increases customer experience when price is high. On the contrary, an increase in goal, decreases customer experience when price is low. In the case of mall an experientially oriented customer has enhanced customer experience when perception of price is high. On the

118 202 contrary for experientially oriented customer high experience decreases when price perception is low. Experiential customers usually frequent malls with the intention to reap loyalty discounts and benefit from the various promotional offers. When the above expectation is satisfied they have better experience. They also browse for products and purchase products impulsively (Souitaris and Balabanis 2007). Therefore, retailers can introduce customised loyalty programmes and display promotion offers at prominent locations to significantly increase the experience of these customers. Table Two-way ANOVA of goal and retail brand on customer experience for mall Goal Retail brand Goal * retail brand a. R d =.290 (Adjusted R d =.279) As hypothesized the main effect of goal on customer experience ( (3,201) =2.011, p>0.1) was not supported. The interaction effect of goal and experience in retail brand on customer experience for mall as hypothesized in H 10D2 ( (3,201) =4.630,p>0.1) was not supported (Table 4.118). Table Two-way ANOVA of goal and alternate channel on customer experience for mall Goal Alternate channel Goal * alternate channel a. R d =.198 (Adjusted R d =.185)

119 203 As hypothesized the main effect of goal on customer experience ( (3,197) =0.223, p>0.1) was not supported. The interaction effect of goal and alternate channel on customer experience for mall as hypothesized in H 10D2G ( (3,197) =0.276,p>0.1) was not supported (Table 4.119) Involvement The moderating effects of involvement of the customer (whether the involvement of the customer is high or low) on the various determinants namely the social environment, service interface, retail atmosphere, assortment, price, customer experience in alternate channels and retail brand are tested for mall. The main and interaction effect of goal and determinants on customer experience was tested. H 11D1 : Involvement significantly influences customer experience in the case of mall. H 11D2 : Involvement moderates the effect of the determinants on customer experience for mall. H 11D2A : Involvement moderates the effect of the social environment on customer experience for mall. H 11D2B : Involvement moderates the effect of the service interface on customer experience for mall. H 11D2C : Involvement moderates the effect of the retail atmosphere on customer experience for mall. H 11D2D : Involvement moderates the effect of the assortment on customer experience for department store for mall.

120 204 H 11D2E : Involvement moderates the effect of the price on customer experience for department store for mall. H 11D2 : Involvement moderates the effect of the experience in the alternate channels on customer experience for mall. H 11D2G : Involvement moderates the effect of the retail brand on customer experience for mall. Table Two-way ANOVA of involvement and social environment on customer experience for mall Involvement Social environment Involvement * social environment a. R d =.378 (Adjusted R d =.368) As hypothesized the main effect of involvement on customer experience ( (3,195) =11.635, p<0.1) was supported. The interaction effect of involvement and social environment on customer experience for mall as hypothesized in H 11D2A ( (3,195) =9.411, p<0.1) was supported at 10% level of significance (Table 4.120). rom the igure 4.39 it can be seen that an increase in involvement decreases customer experience when social environment is high. On the contrary, an increase in involvement, increases customer experience when social environment is low.

121 205 igure 4.39 Interaction effects of involvement and social environment on customer experience for malls In the case of malls when involvement is low customer experience is better for low values of social environment and when involvement is high customer experience decreases for high values of social environment. Empirical research has confirmed that highly involved individuals seek out information actively and draw on more information than individuals with low involvement (Park et al, 2007). The results of the study also confirm with the above finding. Retailers have to provide more information at the malls and during the prepurchase phase since high involved customer is active information seeker are not influenced much by the reference groups comprising mainly of family, friends or peers. Table Two-way ANOVA of involvement and service interface on customer experience for mall of s Involvement Service interface Involvement * service interface a. R d =.349 (Adjusted R d =.339)

122 206 As hypothesized the main effect of involvement on customer experience ( (3,201) =0.286, p>0.1) was not supported. The interaction effect of involvement and service interface on customer experience for mall as hypothesized in H 11D2B ( (3,201) =0.005,p>0.1) was not supported (Table 4.121). Table Two-way ANOVA of involvement and retail atmosphere on customer experience for mall Involvement Atmosphere Involvement * atmosphere a. R d =.519 (Adjusted R d =.512) As hypothesized the main effect of involvement on customer experience ( (3,197) =11.687, p<0.1) was supported. The interaction effect of involvement and retail atmosphere on customer experience for mall as hypothesized in H 11D2C ( (3,197) =10.086,p<0.1) was supported at 10% level of significance (Table 4.122). igure 4.40 Interaction effects of involvement and atmosphere on customer experience for malls

123 207 rom the igure 4.40 it can be seen that increase in involvement decreases customer experience when atmosphere is high. On the contrary, an increase in involvement, increases customer experience when atmosphere is low. High involvement of the customer increases the experience when the store atmosphere is perceived low and decreases customer experience when the atmosphere is perceived to be high. Due to their high interest (highly involved customer), these consumers have already gained an overview in the pre-purchase phase and formed an opinion. Hence, they do not require a stimulating environment. They expect only the fundamental elements of the atmosphere to be present, for example a fuctional design/layout of the store that permits them to obtain the desired product. Table Two-way ANOVA of involvement and assortment on customer experience for mall of s Involvement Assortment Involvement * assortment a. R d =.320 (Adjusted R d =.310) As hypothesized the main effect of involvement on customer experience ( (3,195) =1.270, p>0.1) was not supported. The interaction effect of involvement and assortment on customer experience for mall as hypothesized in H 11D2D ( (3,195) =0.829, p>0.1) was not supported (Table 4.123).

124 208 Table Two-way ANOVA of involvement and price on customer experience for mall Involvement Price Involvement * price a. R d =.334 (Adjusted R d =.324) As hypothesized the main effect of involvement on customer experience ( (3,201) =3.306, p<0.1) was supported. The interaction effect of involvement and price on customer experience for mall as hypothesized in H 11D2E ( (3,201) =2.395,p>0.1) was not supported (table 4.124). Table Two-way ANOVA of involvement and alternate channel on customer experience for mall Involvement Alternate channel Involvement * alternate channel a. R d =.233 (Adjusted R d =.221) As hypothesized the main effect of involvement on customer experience ( (3,197) =7.201, p<0.1) was supported. The interaction effect of involvement and experience in alternate channels on customer experience for mall as hypothesized in H 11D2 ( (3,197) =5.031,p<0.1) was supported at 10% level of significance (Table 4.125).

125 209 igure 4.41 Interaction effects of involvement and alternate channel on customer experience for malls rom the igure 4.41 it can be seen that an increase in involvement increases customer experience when alternate channel experience is high. Similarly an increase in involvement, increases customer experience when alternate channel experience is low. In the case of mall for a high involvement customer the experience in the retail outlet increases for the different values of alternate channel experience. The high involvement individuals being active information seekers search for information from the different alternative channels of the store. Hence their experience is enhanced by communication received for these channels. The retailer in this information age has to open up alternate channels which could cater to these individuals. The channels should provide specific communication with respect to the various events, promotional offers and details regarding the various shops.

126 210 Table Two-way ANOVA of involvement and retail brand on customer experience for mall Involvement Retail brand Involvement * retail brand a. R d =.349 (Adjusted R d =.339) As hypothesized the main effect of involvement on customer experience ( (3,201) =21.505, p<0.1) was supported. The interaction effect of involvement and retail brand on customer experience for mall as hypothesized in H 11D2G ( (3,201) =19.686,p<0.1) was supported at 10% level of significance (Table 4.126). igure 4.42 Interaction effects of involvement and retail brand on customer experience for malls rom the igure 4.42 it can be seen that increase in involvement decreases customer experience when retail brand is high. On the contrary, an increase in involvement, increases customer experience when retail brand is low.

127 211 High involvement of the customer increases the experience when the retail brand is perceived low and decreases customer experience when the retail brand is perceived to be high. rom the previous research it has been studied that the consumers have already gained an insight in the pre-purchase phase and formed an opinion about the retail brand. The customers already have purchase plan with regard to the retail brand. The retailer has to play a key role in actively disseminating the information about the store at the time of search phase itself. Inorder to achieve this, retailer should be knowledgeable about the different ways to shower the customer with information for example through displays in the lobby, advertisements in the parking lot and in prominent landmarks Summary Mall Regression analysis was carried out to identify the most significant contributors to customer experience. Social environment, retail atmosphere, price, retail brand and past experience are the significant antecedents of customer experience in the case of mall. General linear method was used to study the effects of moderator on the relationship between the determinamt and customer experience. In the case of mall only interaction effect between loction and price is not supported. Significant interaction effect exists between goal and price. Interaction effects exist between involvement and social environment, involvement and assortment, involvement and alternate channel experience and also between involvement and retail brand SPECIALTY STORES Speciality stores focuses on special market segments and carpet area generally ranges from sqft. Examples of speciality stores in Chennai are Croma, Viveks, Health and Glow, Univercell etc. The descriptive

128 212 characteristics of the data for the speciality stores are given below in the Table Table Constructs, mean statistics and standard deviation for speciality stores. Construct Std. Deviation Statistic Std. Error Statistic Past experience Customer experience Atmosphere Assortment Price Service interface Social environment Retail brand Alternate channel experience Regression result for Customer Experience in Specialty Stores The following hypotheses were tested: H 1E : In speciality stores Social environment will significantly influence the experience of the retail customers. H 2E : In speciality stores Service interface will significantly influence the experience of the retail customers. H 3E : In speciality stores Retail atmosphere will significantly influence the experience of the retail customers. H 4E : In speciality stores Assortment will significantly influence the experience of the retail customers.

129 213 H 5E : In speciality stores Price will significantly influence the experience of the retail customers. H 6E : In speciality stores Experience in alternate channels will significantly influence the experience of the retail customers. H 7E : In speciality stores Retail brand will significantly influence the experience of the retail customers. H 8E : In speciality stores previous customer experience will significantly influence the experience of the retail customers. The generalized equation for regression is CE= a + 1 SE + 2 SI + 3 RA + 4 AS + 5 PR + 6 AC + 7 RB+ 8 PE Table Summary of regression models for determinants and customer experience for speciality stores Model R R Adjusted R Std. Error of the Estimate a The result of the multiple regression using enter method as in Table and Table 4.129, shows that overall model for speciality stores yielded a significant statistic (=65.717, p<0.000) and adjusted R 2 =0.826, explained by social environment, service interface, retail atmosphere, assortment, price, experience in alternate channels, retail brand and previous customer experience.

130 214 Table Model significance for speciality stores Model Sum Regression a Residual Total As hypothesized social environment is significantly influencing customer experience ( =0.516, p<0.05) thus supporting the hypothesis H 1E and it is the strongest determinant of customer experience. Service interface is significantly influencing customer experience ( =0.163, p<0.05) thus supporting the hypothesis H 2E. Atmosphere is significantly influencing customer experience ( =0.509, p<0.05) thus supporting the hypothesis H 3E. Price is significantly influencing customer experience ( =0.157, p<0.05) thus supporting the hypothesis H 5E. Alternate channel experience is significantly influencing customer experience ( =0.158, p<0.05) thus supporting the hypothesis H 7E. Previous experience is significantly influencing customer experience ( =0.296, p<0.05) thus supporting the hypothesis H 8E. The outcomes are summed up in Table Speciality stores focus particularly on a single category of products. Social environment, service interface, retail atmosphere, price, experience in alternate channel and past experience significantly affect the customer experience in a speciality store. According to Hoovers (2008), affluent customers are the target audience of the speciality stores. Customer compatibility management is essential in order to boost the experience. In speciality stores a knowledgeable salesperson can help the customer to identify the correct product, explain the salient features and provide a demonstration of product usage. Ambient atmosphere, spatial layout and functional design led to approach behaviour and help to augment the experience of the customer. Discounts at speciality stores are viewed

131 215 favourably by the customers because according to a study by Paulins and Geistfeld (2003) done to investigate customer perceptions of store attributes it was found that very few respondents perceived specialty stores to have reasonable prices. Alternate channels of the store can enhance the experience at the retail outlet. Croma the electronics retailer comes out with a monthly catalogue which gives a complete list of products, price, a brief description, deals of the month, latest news in the field of electronics, and new introductions. This enables the customer to obtain information and shop accordingly. Previous experience increases familiarity and enables the customer to have a better experience. The equation for speciality stores can now be constructed as CE (SS) = SE SI RA PR AC PE Table Predictor effects and estimates for determinants on customer experience for speciality stores Model Unstandardized Coefficients B Std. Error Beta Standardized Coefficients t (Constant) Past experience Atmosphere Assortment Price Service interface Social environment Retail brand Alternate experience channel

132 216 The regression residue distribution is checked for normality by using histogram and PP chart and found to be satisfactory as in igure 4.43 and igure The regression variate is found to meet the assumption of normality. igure 4.43 Residue distributions for speciality stores igure 4.44 P-P plot residue distributions for speciality stores Moderating Effect Moderator models are used to examine when an independent variable influences a dependent variable. That is, moderated models are used to identify factors that change the relationship between independent and dependent variables. General linear method was performed on customer experience, the determinants and the moderator.

133 Location The moderating effects of the situation moderator namely location on the various determinants namely the social environment, service interface, retail atmosphere, assortment, price, customer experience in alternate channels and retail brand are tested for speciality store. The main and interaction effect of location and determinants on customer experience was tested. H 9E1 H 9E2 H 9E2A H 9E2B H 9E2C H 9E2D H 9E2E H 9E2 H 9E2G : Location significantly influences customer experience in the case of speciality store. : Location moderates the effect of the determinants on customer experience for speciality store. : Location moderates the effect of the social environment on customer experience for speciality store. : Location moderates the effect of the service interface on customer experience for speciality store. : Location moderates the effect of the retail atmosphere on customer experience for speciality store. : Location moderates the effect of the assortment on customer experience for speciality store. : Location moderates the effect of the price on customer experience for speciality store. : Location moderates the effect of the experience in the alternate channels on customer experience for speciality store. : Location moderates the effect of the retail brand on customer experience for speciality store.

134 218 Table Two-way ANOVA of location and social environment on customer experience for speciality store Location Social environment Location * social environment a. R d =.516 (Adjusted R d =.503) As hypothesized the main effect of location on customer experience ( (3,108) =13.509, p<0.1) was supported. The interaction effect of location and social environment on customer experience for speciality store as hypothesized in H 9E2A ( (3,108) =15.162,p<0.1) was supported at 10% level of significance (Table 4.131). igure 4.45 Interaction effects of location and social environment on customer experience for speciality store rom the igure 4.45 it can be seen that an increase in location increases customer experience when social environment is high. On the contrary, an increase in location, decreases customer experience when social environment is low.

135 219 In the case of speciality store it can be seen that a favourable location increases customer experience when social environment is perceived to be high and on the contrary decreases customer experience when social environment is perceived to be low. Customers usually prefer stores that are less crowded and recommended by the reference groups. Speciality store outlets that enjoy positive word of mouth and strategic location boost the experience of the customers. Retailers should specifically concentrate on improving the retail image using marketing strategies such as targeted marketing, customised communication through newsletters and personalised offers. Table Two-way ANOVA of location and service interface on customer experience for speciality store Location Service interface Location * service interface a. R d =.144 (Adjusted R d =.121) As hypothesized the main effect of location on customer experience ( (3,112) =1.960, p>0.1) was not supported. The interaction effect of location and service interface on customer experience for speciality store as hypothesized in H 9E2B ( (3,112) =4.258, p<0.1) was supported at 10% level of significance (Table 4.132).

136 220 igure 4.46 Interaction effects of location and service interface on customer experience for speciality store rom the igure 4.46 it can be seen that an increase in location increases customer experience when service interface is high. Similarly, an increase in location, increases customer experience when service interface is low. Speciality store customers enjoy enhanced experience when the store is located in a favourable location for the different perception about the service interface. The influence of the salesperson and the usage of the latest technology to enhance customer experience can simply be overridden by a convienient, accessible and central location of the retail store. The locational advantage is such that it saves a lot of time and effort that the customer has to spend in completing the shopping task. The retailer, therefore, must concentrate on selecting an appropriate location backed by facilities to augment the experience of customers.

137 221 Table Two-way ANOVA of location and retail atmosphere on customer experience for speciality store Location Atmosphere Location * atmosphere a. R d =.689 (Adjusted R d =.681) As hypothesized the main effect of location on customer experience ( (3,112) =2.403, p>0.1) was not supported. The interaction effect of location and retail atmosphere on customer experience for speciality store as hypothesized in H 9E2C ( (3,112) =3.640, p<0.1) was supported at 10% level of significance (Table 4.133). igure 4.47 Interaction effects of location and atmosphere on customer experience for speciality store rom the igure 4.47 it can be seen that an increase in location increases customer experience when atmosphere is high. Similarly, an increase in location, increases customer experience when atmosphere is low. Irrespective of the atmosphere of the speciality store a favourable location positively impacts customer experience. Convenience is the key for

138 222 customers who are deprived of time, under such circumstances the ability of the retailer to stay put in a particularly favourable location (either at the centre of the city or at an accessible place) can easily conceal the differences in the retail atmosphere of the store to a greater extent. Table Two-way ANOVA of location and assortment on customer experience for speciality store Location Assortment Location * assortment a. R d =.422 (Adjusted R d =.407) As hypothesized the main effect of location on customer experience ( (3,112) =12.891, p<0.1) was supported. The interaction effect of location and assortment on customer experience for speciality store as hypothesized in H 9E2D ( (3,112) =15.821, p<0.1) was supported at 10% level of significance (Table 4.134). igure 4.48 Interaction effects of location and assortment on customer experience for speciality store

139 223 rom the igure 4.48 it can be seen that an increase in location increases customer experience when assortment is high. Similarly, an increase in location, increases customer experience when assortment is low. When the speciality stores are favourably located it can be seen that customer experience is better for the different values of assortment. A speciality store is seen as a format which usually stocks huge variety of same category of products of different quality and at different prices in order to satisfy different categories of people. But results show that a favourable location can actually override the importance of the assortment levels and enhance customer experience. Retailers must locate their stores at areas perceived to be conveniently accessible and thereby reducing the time and effort costs of the customer. Table Two-way ANOVA of location and price on customer experience for speciality store Location Price Location * price a. R d =.340 (Adjusted R d =.322) As hypothesized the main effect of location on customer experience ( (3,110) =18.734, p<0.1) was supported. The interaction effect of location and price on customer experience for speciality store as hypothesized in H 9E2E ( (3,110) =23.646,p<0.1) was supported at 10% level of significance (Table 4.135).

140 224 igure 4.49 Interaction effects of location and price on customer experience for speciality store rom the igure 4.49 it can be seen that an increase in location increases customer experience when price is high. On the contrary, an increase in location, decreases customer experience when price is low. In the case of speciality stores a favourable location increases customer experience when (loyalty programmes and promotions) perception of price is high and decreases customer experience when perception of price is low. According to Berry et al (2002) a central location can reduce the transaction costs associated with shopping (e.g., transportation cost, time spent and effort). The retailer s favourable location coupled with loyalty programmes and other promotion can considerably increase customer experience.

141 225 Table Two-way ANOVA of location and alternate channel on customer experience for speciality store Location Alternate channels Location * alternate channels a. R d =.381 (Adjusted R d =.364) As hypothesized the main effect of location on customer experience ( (3,112) =32.423, p<0.1) was supported. The interaction effect of location and experience in alternate channels on customer experience for speciality store as hypothesized in H 9E2 ( (3,112) =47.212, p<0.1) was supported at 10% level of significance (Table 4.136). igure 4.50 Interaction effects of location and alternate channel on customer experience for speciality store rom the igure 4.50 it can be seen that an increase in location increases customer experience when alternate channel experience is high. Similarly, an increase in location, decreases customer experience when alternate channel experience is low.

142 226 In the case of speciality a favourable location increases customer experience when alternate channel experience is high and decreases customer experience when alternate channel experience is low. A convenience orientation is a key benefit that shoppers seek in the modern environment. Speciality store customers look for information via alternate channels before making purchase decisions. Hence alternate channel experience is important. Although the store is favourably located but customer the customer has no proper communication available from other channels then the customer is forced to visit the store thereby decreasing his customer experience. Therefore, the retailer has to consolidate his presence in other channels to influence customer experience positively. Table Two-way ANOVA of location and retail brand on customer experience for speciality store Location Retail brand Location * retail brand a. R d =.496 (Adjusted R d =.482) As hypothesized the main effect of location on customer experience ( (3,112) =35.980, p<0.1) was supported. The interaction effect of location and retail brand on customer experience for speciality store as hypothesized in H 9E2G ( (3,112) =47.018, p<0.1) was supported at 10% level of significance (table 4.137).

143 227 igure 4.51 Interaction effects of location and retail brand on customer experience for speciality store rom the igure 4.51 it can be seen that an increase in location increases customer experience when retail brand is high. Similarly, an increase in location, increases customer experience when retail brand is low. In the case of speciality store a favourable location significantly increases customer experience regardless of the perception about retail brand. A convenience orientation is a key benefit that shoppers seek in the modern environment. Empirical evidence supports these theories by showing that easy accessibility has a high correlation with shopping centre selection (Bellenger et al, 1977). Therefore, for the retailer a favourable location that is easily accessible can keep under wraps the shortcomings of the retail brand Goals The moderating effects of goal of the customer (whether the customer is experientially oriented or task oriented) on the various determinants namely the social environment, service interface, retail atmosphere, assortment, price, customer experience in alternate channels and

144 228 retail brand are tested for speciality stores. The main and interaction effect of goal and determinants on customer experience was tested. H 10E1 : Goal significantly influences customer experience in the case of speciality store. H 10E2 : Goal moderates the effect of the determinants on customer experience for speciality store. H 10E2A : Goal moderates the effect of the social environment on customer experience for speciality store. H 10E2B : Goal moderates the effect of the service interface on customer experience for speciality store. H 10E2C : Goal moderates the effect of the retail atmosphere on customer experience for speciality store. H 10E2D : Goal moderates the effect of the assortment on customer experience for speciality store. H 10E2E : Goal moderates the effect of the price on customer experience for speciality store. H 10E2 : Goal moderates the effect of the experience in the alternate channels on customer experience for speciality store. H 10E2G : Goal moderates the effect of the retail brand on customer experience for speciality store.

145 229 Table Two-way ANOVA of goal and social environment on customer experience for speciality store Goal Social environment Goal * social environment a. R d =.449 (Adjusted R d =.433) As hypothesized the main effect of goal on customer experience ( (3,108) =0.003, p>0.1) was not supported. The interaction effect of goal and social environment on customer experience for speciality store as hypothesized in H 10E2A ( (3,108) =0.002, p>0.1) was not supported (Table 4.138). Table Two-way ANOVA of goal and service interface on customer experience for speciality store of s Goal Service interface Goal * service interface a. R d =.081 (Adjusted R d =.057) As hypothesized the main effect of goal on customer experience ( (3,112) =0.941, p>0.1) was not supported. The interaction effect of goal and service interface on customer experience for speciality store as hypothesized in H 10E2B ( (3,112) =1.913,p>0.1) was not supported (Table 4.139).

146 230 Table Two-way ANOVA of goal and retail atmosphere on customer experience for speciality store Goal Atmosphere Goal * atmosphere a. R d =.683 (Adjusted R d =.674) As hypothesized the main effect of goal on customer experience ( (3,112) =0.208, p>0.1) was not supported. The interaction effect of goal and retail atmosphere on customer experience for speciality store as hypothesized in H 10E2C ( (3,112) =0.581,p>0.1) was not supported (Table 4.140). Table Two-way ANOVA of goal and assortment on customer experience for speciality store Goal Assortment Goal * assortment a. R d =.340 (Adjusted R d =.322) As hypothesized the main effect of goal on customer experience ( (3,112) =1.804, p>0.1) was not supported. The interaction effect of goal and assortment on customer experience for speciality store as hypothesized in H 10E2D ( (3,112) =1.418,p>0.1) was not supported (Table 4.141).

147 231 Table Two-way ANOVA of goal and price on customer experience for speciality store Goal Price Goal * price a. R d =.186 (Adjusted R d =.164) As hypothesized the main effect of goal on customer experience ( (3,110) =1.671, p>0.1) was not supported. The interaction effect of goal and price on customer experience for speciality store as hypothesized in H 10E2E ( (3,110) =2.214,p>0.1) was not supported (Table 4.142). Table Two-way ANOVA of goal and alternate channel on customer experience for speciality store Goal Alternate channel Goal * alternate channel a. R d =.098 (Adjusted R d =.074) As hypothesized the main effect of goal on customer experience ( (3,112) =4.533, p<0.1) was supported. The interaction effect of goal and experience in alternate channels on customer experience for speciality store as hypothesized in H 10E2 ( (3,112) =3.435,p<0.1) was supported at 10% level of significance (Table 4.143).

148 232 igure 4.52 Interaction effects of goal and alternate channel on customer experience for speciality store rom the igure 4.52 it can be seen that an increase in goal decreases customer experience only slightly (negligible) when alternate channel experience is high. Whereas an increase in goal, increases customer experience significantly when alternate channel experience is low. An experiential customer of speciality store has an enhanced customer experience when alternate channel experience is low. Experientially oriented customers browse for products and purchase products impulsively (Souitaris and Balabanis 2007). Such customers would like to have a touch and feel of the products, examine the alternatives and purchase spontaneously. Therefore, shortcoming in the alternate channel is overlooked by the experientially oriented customers.

149 233 Table Two-way ANOVA of goal and retail brand on customer experience for speciality store Goal Retail brand Goal * retail brand a. R d =.285 (Adjusted R d =.266) As hypothesized the main effect of goal on customer experience ( (3,112) =1.319, p>0.1) was not supported. The interaction effect of goal and retail brand on customer experience for speciality store as hypothesized in H 10E2G ( (3,112) =1.380,p>0.1) was not supported (Table 4.144) Involvement The moderating effects of involvement of the customer (whether the involvement of the customer is high or low) on the various determinants namely the social environment, service interface, retail atmosphere, assortment, price, customer experience in alternate channels and retail brand are tested for speciality stores. The main and interaction effect of goal and determinants on customer experience was tested. H 11E1 : Involvement significantly influences customer experience in the case of speciality store. H 11E2 : Involvement moderates the effect of the determinants on customer experience for speciality store. H 11E2A : Involvement moderates the effect of the social environment on customer experience for speciality store.

150 234 H 11E2B : Involvement moderates the effect of the service interface on customer experience for speciality store. H 11E2C : Involvement moderates the effect of the retail atmosphere on customer experience for speciality store. H 11E2D : Involvement moderates the effect of the assortment on customer experience for department store for speciality store. H 11E2E : Involvement moderates the effect of the price on customer experience for department store for speciality store. H 11E2 : Involvement moderates the effect of the experience in the alternate channels on customer experience for speciality store. H 11E2G : Involvement moderates the effect of the retail brand on customer experience for speciality store. Table Two-way ANOVA of involvement and social environment on customer experience for speciality store Involvement Social environment Involvement * social environment a. R d =.624 (Adjusted R d =.614) As hypothesized the main effect of involvement on customer experience ( (3,108) =32.524, p<0.1) was supported. The interaction effect of

151 235 involvement and social environment on customer experience for speciality store as hypothesized in H 11E2A ( (3,108) =20.475, p<0.1) was supported at 10% level of significance (table 4.145). igure 4.53 Interaction effects of involvement and social environment on customer experience for speciality store rom the igure 4.53 it can be seen that an increase in involvement increases customer experience slightly when social environment is high. Similarly increase in involvement increases customer experience when social environment is low. Thus it can be seen that regardless of social environment of the speciality store, high involvement significantly increases customer experience. Empirical research has confirmed that highly involved individuals seek out information actively and draw on more information than individuals with low involvement (Park et al 2007). A retailer has to provide more information at the speciality stores and during the prepurchase phase since high involved customer is active information seeker themselves and are not dependent only on the reference groups comprising mainly of family, friends or peers.

152 236 Table Two-way ANOVA of involvement and service interface on customer experience for speciality store Involvement Service interface Involvement * service interface a. R d =.441 (Adjusted R d =.426) As hypothesized the main effect of involvement on customer experience ( (3,112) =3.319, p<0.1) was supported. The interaction effect of involvement and service interface on customer experience for speciality store as hypothesized in H 11E2B ( (3,112) =13.354,p<0.1) was supported at 10% level of significance (Table 4.146). igure 4.54 Interaction effects of involvement and service interface on customer experience for speciality store rom the igure 4.54 it can be seen that an increase in involvement increases customer experience when service interface is high. Similarly an increase in involvement increases customer experience when service interface is low.

153 237 Thus it can be seen that regardless of service interface (service person and technology) at the speciality store high involvement significantly increases customer experience. Highly involved customers need to have the freedom to roam and explore a store so that their experience is superior. The retailer should give them a zone of personal space, especially when they first enter a store. Salespeople should greet highly involved customers when they come into a store and then allow them to be on their own, ready to help only if beckoned to do so. Table Two-way ANOVA of involvement and atmosphere on customer experience for speciality store Involvement Atmosphere Involvement * atmosphere a. R d =.711 (Adjusted R d =.703) As hypothesized the main effect of involvement on customer experience ( (3,112) =4.001, p<0.1) was supported. The interaction effect of involvement and retail atmosphere on customer experience for speciality store as hypothesized in H 11E2C ( (3,112) (Table 4.147). =1.253, p>0.1) was not supported Table Two-way ANOVA of involvement and assortment on customer experience for speciality store Involvement Assortment Involvement * assortment a. R d =.530 (Adjusted R d =.517)

154 238 As hypothesized the main effect of involvement on customer experience ( (3,112) =21.634, p<0.1) was supported. The interaction effect of involvement and assortment on customer experience for speciality store as hypothesized in H 11E2D ( (3,112) =12.630,p<0.1) was supported at 10% level of significance (Table 4.148). igure 4.55 Interaction effects of involvement and assortment on customer experience for speciality store rom the igure 4.55 it can be seen that an increase in involvement increases customer experience when assortment is high. Similarly an increase in involvement increases customer experience when assortment is low. In the case of speciality store high involvement leads to higher customer experience regardless of the value of assortment. High involvement customers do not require a wide variety of products since they have already formed an opinion on the basis of the information they have gathered.

155 239 Table Two-way ANOVA of involvement and price on customer experience for speciality store Involvement Price Involvement * price a. R d =.441 (Adjusted R d =.426) As hypothesized the main effect of involvement on customer experience ( (3,110) =0.921, p>0.1) was not supported. The interaction effect of involvement and price on customer experience for speciality store as hypothesized in H 11E2E ( (3,112) =0.063,p>0.1) was not supported (Table 4.149). Table Two-way ANOVA of involvement and alternate channel on customer experience for speciality store Involvement Alternate channel Involvement* alternate channel a. R d =.409 (Adjusted R d =.394) As hypothesized the main effect of involvement on customer experience ( (3,112) =18.366, p<0.1) was supported. The interaction effect of involvement and experience in alternate channels on customer experience for speciality store as hypothesized in H 11E2 ( (3,112) =5.912,p>0.1) was not supported at 10% level of significance (Table 4.150).

156 240 Table Two-way ANOVA of involvement and retail brand on customer experience for speciality store Involvement Retail brand Involvement * retail brand a. R d =.462 (Adjusted R d =.447) As hypothesized the main effect of involvement on customer experience ( (3,112) =5.722, p<0.1) was supported. The interaction effect of involvement and retail brand on customer experience for speciality store as hypothesized in H 11E2G ( (3,112) =1.978,p>0.1) was not supported (Table 4.151) Summary Speciality Stores Regression analysis was carried out to identify the most significant contributors to customer experience. Social environment, service interface, retail atmosphere, price, experience in alternate channel and past experience significantly affect the customer experience in a speciality store. General linear method was used to study the effects of moderator on the relationship between the determinant and customer experience. Significant interaction effect exists between location and all the determinants. Significant interaction effect exists between goal and alternate channel experience. Interaction effects exist between involvement and social environment, involvement and service interface andalso between involvement and assortment.

157 BRANDED STORES Branded stores are said to be exclusive showrooms either owned or franchised out by the manufacturer. Example of branded stores in Chennai are Bata, Peter England, Titan,Tanishq etc.the descriptive characteristics of the data for the branded stores are given below in the Table Table Constructs, mean statistics and standard deviation for branded stores Construct Std. Deviation Statistic Std. Error Statistic Customer experience Past experience Atmosphere Assortment Price Service interface Social environment Retail brand Alternate channel expeience Regression result for Customer Experience in Branded Stores The following hypotheses were tested: H 1 : In branded stores Social environment will significantly influence the experience of the retail customers. H 2 : In branded stores Service interface will significantly influence the experience of the retail customers.

158 242 H 3 : In branded stores Retail atmosphere will significantly influence the experience of the retail customers. H 4 : In branded stores Assortment will significantly influence the experience of the retail customers. H 5 : In branded stores Price will significantly influence the experience of the retail customers. H 6 : In branded stores Experience in alternate channels will significantly influence the experience of the retail customers. H 7 : In branded stores Retail brand will significantly influence the experience of the retail customers. H 8 : In branded stores previous customer experience will significantly influence the experience of the retail customers. The generalized equation for regression is CE= a + 1 SE + 2 SI + 3 RA + 4 AS + 5 PR + 6 AC + 7 RB+ 8 PE Table Summary of regression models for determinants and customer experience for branded stores Model R R Adjusted R Std. Error of the Estimate a The result of the multiple regression using enter method as in table and table 4.154, shows that overall model for branded stores yielded a significant statistic (=29.290, p<0.000) and adjusted R 2 =0.679, explained by social environment, service interface, retail atmosphere, assortment, price,

159 243 experience in alternate channels, retail brand and previous customer experience. Table Model significance for branded stores Model Sum of s 1 Regression a Residual Total As hypothesized social environment is significantly influencing customer experience ( =0.640, p<0.05) thus supporting the hypothesis H 1 and it is the strongest determinant of customer experience. Service interface is significantly influencing customer experience ( =0.432, p<0.05) thus supporting the hypothesis H 2. Atmosphere is significantly influencing customer experience ( =0.308, p<0.05) thus supporting the hypothesis H 3. Price is significantly influencing customer experience ( =0.270, p<0.05) thus supporting the hypothesis H 5. Previous experience is significantly influencing customer experience ( =0.346, p<0.05) thus supporting the hypothesis H 8E. The outcomes are summed up in table Social environment, service interface, atmosphere, price and past experience are significant contributors to the customer experience in branded stores. The presence and interaction between similar customers as well lesser crowd in the branded contributes to customer experience. A knowledgeable salesperson can help the customer to identify the correct product and explain the salient features thereby creating a hassle free transaction. A pleasant shopping environment with bright lights and fine music impacts the customer and it is a prominent contributor. Loyalty programmes which results in cost reduction for the customer act as switching barriers. Experience at the

160 244 previous instant helps the customer to understand the retailer and form an opinion which impacts the current situation. The estimating equation for branded stores can now be constructed as CE (BS) = SE SI RA PR PE Table Predictor effects and estimates for determinants on customer experience for branded stores Model Unstandardized Coefficients Standardized Coefficients t B Std. Error Beta (Constant) Past experience Atmosphere Assortment Price Service interface Social environment Retail brand Alternate experience channel The regression residue distribution is checked for normality by using histogram and PP chart and found to be satisfactory as in igure 4.56 and igure The regression variate is found to meet the assumption of normality.

161 245 igure 4.56 Residue distributions for branded stores igure 4.57 P-P plot residue distributions for branded stores Moderating Effect Moderator models are used to examine when an independent variable influences a dependent variable. That is, moderated models are used to identify factors that change the relationship between independent and dependent variables. General linear method was performed on customer experience, the determinants and the moderator Location The moderating effects of the situation moderator namely location on the various determinants namely the social environment, service interface, retail atmosphere, assortment, price, customer experience in alternate