CHECKOUT APRIL 2018
Make a Comfortable Waiting Area
Problem of Fashion Retailers
Hong Kong
IMPROVE Customers
Queuing Problem
Lau Lok Yi N0776463 177281160 FASH30006 Fashion Concepts and Innovation Project
Fig 1. Fashion store cashier
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Nottingham Trent University School of Art & Design Hong Kong Design Institute
ba
ifb
2017 / 2018
Module: Fashion Concepts & Innovation Project Module reference: FASH30006
IVE
Module Leader: Cassandra NG
Module Name Declaration This submission is the result of my own work. All help and advice other than that received from tutors has been acknowledged and primary and secondary sources of information have been properly attributed. Should this statement prove to be untrue, I recognise the right and duty of the Board of Examiners to recommend what action should be taken in line with the University’s regulation on assessment contained in its handbook. I confirm that this work has gained ethical approval and that I have faithfully observed the terms of the approval in the conduct of this project.
Signed ……………………………………………………………… (Full Name) ……………Lau Lok Yi……………… Date …………………………12-3-18………………………………… (Word Count: __3689 WORDS___)
Fig 2. Shadow of queuing
CON TENTS
Introduction Objective Literature Review Service Outcome Wait Perceptions Brand Loyalty
Research Methodology Preliminary Findings Preliminary Suggestions References Photo References
INTRO DUCTION
01 P.1
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he queues are discovered wherever the customer arrives for the services (Sultana and Islam, 2012). According to Adan and Resing (2001), "[Customers] do not like to wait" and queuing for checkout is frequently perceived to be a negative experience (van Riel et al., 2006?; van Riel et al., 2012). Fig 3. Causeway Bay Uniqlo Queue
According to the payments landscape report of sage Pay (2015), queues make British fashion retailers lost ÂŁ3,581 per day as the shoppers lose patience during queuing. The overwhelming majority (73%) shoppers are frustrated and discontented by queuing in-store and identifying it as the most irritating aspect of the shopping experience.
In the same report shows that more than half (53%) of consumers admitted that they would be walked out of the store because of long waiting times. Around 60% of consumers stated they would simply leave immediately if facing long queue.
Fig 4. sage Pay logo
Fig 5. Quese sign
The report of Intel and Box Technologies (as cited in Hendriksz, 2014) claims that 9 minutes waiting time in a queue is long enough for the majority customer to reconsider the purchase. Moreover, customers prefer to quit the queue if there are more than 6 people waiting in the queue. In addition, eight out of ten consumers believe that fast moving queue is the key of the good customer service, but over 70% of customers think that the retailers are not doing enough to solve the queuing problems. P.2
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oth shows that long queues for checkout have the significant influence on potential revenues for the fashion retailers.
According to the report of Intel and Box Technologies (as cited in Hendriksz, 2014), the slowmoving queue for checkout in store may affect the shoppers brand loyalty especially fashion and apparel stores.
Fig 6. box technologies logo
These shops were rated as having the longest queuing time; more than 70% customers would shop in the competitor's brand if the queue time is more efficient. Moreover, 70% customer would not prefer to revisit the store if the customer had previously experienced the long queuing times. Fig 7. H&M checkout
Parmar, the marketing director at Box Technologies asserts (as cited in Sillitoe, 2015) the result of the report which demonstrated that clearly how long queues are leading to lose the sales and affect the profit. In addition, Parmar explained that the retailers cannot afford to neglect the cost of the lengthy queues in-store - both to the incomes and the impact on brand loyalty (as cited in Hendriksz, 2014).
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Therefore, the experience of customer queuing for checkout is a significant problem that the fashion retailers need to understand and improve. According to above, the queuing time for checkout is the main factor influencing the customers' negative emotional response and the queuing time can be attributed by actual waiting time and perceived waiting time.
he study of van Riel et al. (2012) also proved that waiting in line for checkout would trigger the consumer’s negative emotions and influence the customer satisfaction directly and strongly. Thereby affecting the willingness to visit the same store or brand next time. Moreover, customers experience at the checkout includes queuing and payment has a great effect on the evaluations of service, subsequent satisfaction levels, and even the loyalty.
Fig 8. H&M
In this study, the research factors of van Riel et al. (2012) would be taken as reference to develop a better understanding of queuing psychology and study which external factor influences the customer experience. The goal of this study is to help to improve the checkout experience and further to enhance the customer satisfaction as well as the brand loyalty.
This study would focus to improve the queuing problem for fast fashion retailers as there are approximately 10 fast fashion brands such as UNIQLO, H&M and TOPSHOP etc. and total over 80 stores in Hong Kong. The competition between fast fashion brand is fierce. If the queuing for checkout experience could be improved that it would increase the customer satisfaction.
Moreover, refer to the suggestion of van Riel et al. (2012), would further investigate another solution to improve the checkout experience. P.4
OBJECTIVE
02 P.5
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his study purpose is to investigate the checkout experience of the fast fashion customers, identify the problem of the checkout system and ďŹ nd out the factor which would aect the customer feel so as to improve the checkout experience and enhance the customer satisfaction, even customer loyalty.
The study goal is to formulate the new checkout process or system to improve the current system and rule for the fashion retail.
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LITERATURE REVIEW
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he study by van Riel et al. in 2012, entitled ‘Waiting for service at the checkout – Negative emotional responses, store image and overall satisfaction’ aims to develop a better understanding of customer queuing psychology. It is investigated the antecedents of customers’ negative emotional response to waiting at the checkout, and its consequences to brand image and overall satisfaction even loyalty.
The study concluded that negative emotional response to waiting and brand image exert a strong positive effect on customers’ satisfaction. It is also found that negative emotional response to the wait of the customer affects their perceived brand image.
Figure 9 shows the model proposed in the study which investigates customers’ wait perceptions to service outcome. As shown in the model, Attribution to store, Perceived wait duration and Distraction are the three main factors in wait perceptions contributing to customers’ negative emotional response to the wait, which further affects brand image and overall customers’ satisfaction.
This study aims to identify external factors affecting customer experience of fast fashion store and investigate whether brand loyalty would affect the customer's willingness to queue at the store to suggest the ways of improvement. Therefore, the literature review will base on the factors in "Wait perceptions" and "Service outcome" mentioned in the model to explore the relationship between the literature and the improvement of fast fashion checkout.
Fig 9. The empirically validated model of customer satiscfaction
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SERVICE OUTCOME T
he "Service outcome" in the model consists of two factors, including Customer’s negative emotional response to the wait and Store (Brand) image. These two factors influence the Satisfaction.
CUSTOMER’S NEGATIVE EMOTIONAL RESPONSE TO THE WAIT "Customer’s negative emotional response to the wait" is the focus of the model. Waiting in lines brings about negative feeling, including frustration, anger and regret (van Riel et al., 2012; Voorhees et al., 2009; Weng, Gotcher and Kuo, 2017), since customers would not perceive queuing as a necessary part of the retailing experience and it does not add value (Davis and Vollmann, as cited in van Riel et al., 2012). According to the research finding of van Riel et al. (2012), the negative emotional response to wait in lines influences the overall satisfaction directly and strongly. The more the customers disliked the time in queue, the lower the satisfaction level with the whole shopping experience.
Fig 10. Negative emotion
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STORE IMAGE (BRAND IMAGE)
B
rand image is the part involves the relationships with customers, the various factors such as the way of the staff are dressed and the store design (visual merchandising) and cleanliness etc. would create an impression to the customer and these are the points of contact to have with the potential customers (Thimothy, 2016). The previous studies claim that the brand or store image has a great impact on the perceived value of customer, satisfaction, and the revisit intention (Cretu and Brodie; Lai et al.; Ryu et al., as cited in Ryu, Lee and Gon Kim, 2012).
According to van Riel et al. (2012), three fundamental dimensions of store (brand) image are "Store’s physical layout or service", "Merchandise" and "Store personnel". And there is the large positive relationship between store (brand) image and satisfaction. Also, the influence of the negative emotional response to wait on overall satisfaction could partially be mediated by store image.
Fig 11. about BRAND
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WAIT PERCEPTIONS T
he "Wait perceptions" of the model is the different factors which would influence the psychology of customer queuing for checkout.
TIME PERCEPTIONS When consumers wait for the checkout service, their time perception may be affected because the waiting time is subjective in the way customers perceive the results of capacity management (Jones and Hwang, 2005).
According to Baker and Cameron, and Hornik (as cited in van Riel et al., 2012), the length of waiting time of consumer is subjective perception, which is not necessarily directly related to the actual (objective) wait time. Taylor (as cited in van Riel et al., 2012) found that an indirect influence between the actual wait time and satisfaction. Jones and Hwang (2005) observed that in the early waiting time studies, most of the consumers believed that they have waited longer than they really have. In addition, according to Hornick and Zakay (as cited in Jones and Hwang, 2005), the different lengths of wait time were found in different waiting environments and the people's time allocation is determined by environmental circumstance.
Fig 12. Time perception
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herefore, the cognitive process of understanding the various events could also influence the time perception (Hornik and Zakay, as cited in Jones and Hwang, 2005). Such as the bus queue, the bus journey is necessary to take that the time perception of waiting would be different from queuing of the fashion store checkout. And the previous waiting experience would also influence the waiting perception.
Fig 13. Waiting Bus in Hong Kong
van Riel et al. (2012) confirmed that the perceived waiting time strongly leads to the negative emotional response to wait. Therefore, the longer time that customer perceived to wait and last in the checkout point, the most negative emotion they get.
Fig 14. Psychological time & objective time
Moreover, based on the finding of van Riel et al. (2012), there are three factors would influence the customer waiting time perception which is the Waiting environment, Social injustice and Purchase value.
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WAIT PERCEPTIONS TIME PERCEPTIONS
A
Waiting environment (Waiting area)
ccording to the ďŹ nding of van Riel et al. (2012), the neat, well-organized waiting environment would apparently reduce the perceived waiting time. In addition, there are many studies pointed out that the store (service) environment would inuence the consumers' emotion and the perception of waiting time (Sachdeva and Goel, 2015; Li, 2010; Liang, 2016; Liang, 2017). According to Sachdeva and Goel (2015), the retailers in order to attract the customer that are elevating the in-store experience into something more exciting and entertaining to increase the store visits. So, the retailers design the experiential store to use the variety of emotional and cognitive stimuli to create the unique shopping experience for each customer. Fig 15. waiting area in fast fashion store
Meyer claims that (as cited in Sachdeva and Goel, 2015), consumers like to touch, feel, smell, inspect, test and try on which is a holistic approach that involves both emotional and rational triggers. Furthermore, the research has demonstrated that the store environments invoke emotional responses in consumers (Machleit and Eroglu, as cited in Sachdeva and Goel, 2015) and conversely these emotions inuence the customer shopping behavior and make the customers purchase (Donovan and Rossiter; Darden and Babin; Sherman et al., as cited in Sachdeva and Goel, 2015). P.13
I Furthermore, some studies have noticed that consumers' subjective perception of time may be affected by other factors such as scent, music and TV screens in the store (Morrin, Chebat and Gelinas-Chebat, 2010; Borges, Herter and Chebat, 2015).
n the report of Liang (2016), the improvement of waiting environment would create or increase the enjoyable waiting experiences are directly and positively to reduce the customers’ perceived waiting time. The measures of the improvement such as offering information (electronic bulletin boards, music and news etc.) to distract the customers (Cameron et al.; Davis and Heineke, as cited in Liang, 2016).
Chebat and Michon (as cited in Morrin, Chebat and Gelinas-Chebat, 2010) found that the pleasant music in the store would affect the consumers' affective responses. On the other hands, Morrin, Chebat and Gelinas-Chebat (2010) proved that the pleasant ambient scent would reduce the time perception. Milliman (as cited in Borges, Herter and Chebat, 2015) showed that playing fast tempo music in the store is possible to reduce the customer perceived waiting time.
Fig 16. TV screen near cashier
Borges, Herter and Chebat (2015) proved that customer would pay attention to the TV screen that which can distract consumers, reduce the perceived waiting time and increase the customer waiting satisfaction.
According to Wu and Liang (2009), interactive relationships with service staff such as greeting with customer etc. would directly influence the customer satisfaction. Besides, Yunus and Sumartoyo (2012) observed Therefore, the retail that the favorable ambiance, environment including store design and staff in the waiting area and the interactive relationships service environment that would reduce the negative with the staff that would impact of waiting duration influence the customer on the customer satisfaction. emotion and satisfaction have been seen. P.14
WAIT PERCEPTIONS TIME PERCEPTIONS
A
Social Injustice
ccording to Haynes, Jones and Peppiatt and Maister (as cited in van Riel et al, 2012), the unfair waiting would be perceived longer than waits that seem fair. The incidents such as after having stood in the queue for 15 minutes, a customer is about to be assisted. Then an additional checkout line opens and the “newcomers” scurry over to the new register which could be perceived as unfair. (Larson; Zhou and Soman, as cited in van Riel et al., 2012). Fig 17. Social unfair
Moreover, different priority rules such as express checkouts for VIP that if customers do not spend approximately equal time for waiting, this may also create the injustice perception.
van Riel et al. (2012) confirmed that the perceived social injustice will increase the perceived waiting time. Waiting in line would be longer when social justice seems to be lacking. P.15
Value of purchase
J
The study of van Riel et al. (2012) conďŹ rmed that the value of the purchase is linked to the perceived waiting time. The value of perceived in a shopping bag performs a signiďŹ cant, direct and negative inuence on perceived of the waiting time.
one and Peppiatt and Maister (as
cited in van Riel et al., 2012) pointed out that, the more valuable the service, the longer the customer is willing to wait. If the customer purchases a full shopping bag of garments, they would more likely to be lenient than waiting to pay for only a few items.
Therefore, waits are perceived shorter when the customers have the high value in the basket and longer when purchase value is low.
Fig 18. Shopping bag filled with clothes
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WAIT PERCEPTIONS ATTRIBUTION TO THE STORE
A
" ttribution to the store" is one point of "Wait perceptions" and it talks about how the customers understand why need to wait and how waiting is experiencing. The theory called "Wait attribution theory” is concerned with how the people make the attributions of wait - how people expound the events and allocate the reason or blame for the various results (Clemmer and Schneider, as cited in van Riel et al., 2012). When the waiting time is longer than the customers expected, the customers would try to figure out why is it happen. In the checkout point, a customer might attribute the reason of the unusually long wait to the slow shopper in front of him or her, or to the inefficient cashier. Conversely, the checkout be quick that the customers could attribute to the efficient cashiers or the sufficient number of counters. Taylor (as cited in van Riel et al., 2012) found that the negative influence of perceived control on waiting time perceptions. The more the wait is attributed to factors not controlled by customers, but controlled by the store, the more negative feeling could felt by the customer of waiting. To quote Liang (2017), the company could manipulate the waiting time perceptions of the customer with queuing management as well as the waiting environment (Liang, 2016; Liang, 2017; Li, 2010). Therefore, the store can manipulate the waiting time perceptions of the customer. Fig 19. People in queue P.17
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n the research of van Riel et al. (2012) proved that attribution to the store would strongly increase the negative emotion when the customer waiting in line. The more the store or service providers are perceived to have control over the waiting duration, the more unpleasant wait of the customer.
DISTRACTION Base on Maister (as cited in van Riel et al., 2012), consciousness the time passage would result in boredom. When the time passing with nothing happen would affect the customer respond to waiting and the afterward evaluate service (Jones and Peppiatt, as cited in van Riel et al., 2012).
According to the study result of Borges, Herter and Chebat (2015), even the objective time is constant that the retail environment distracters such as TV screen that will decrease the perceived waiting time and enhance the customer satisfaction. Moreover, Lambrecht and Tucker, Wang and Usunier and Valette-Florence (as cited in Liang, 2016) confirmed that diverting the customer attention from waiting to other matters such as offer the snacks to the customer which is possible to reduce the perceived waiting times. Fig 20. Power of distraction
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If the customer has something to focus in the store that the time is perceived to be filled and they may not pay attention to the time passage. The perceived waiting time would be reduced.
This also proved by van Riel et al. (2012), when the store has something can attract the customer and make them pay attention that customers would distract the heed and directly decrease the negative emotion of waiting such as frustration.
BRAND LOYALTY B
rand loyalty is the other factor that not in the model of van Riel at el. According to Anderson, Dick and Basu, Fornell et al, Mittal and Kamakura and Bolton (as cited in Bielen and Demoulin, 2007), the satisfaction of customers is recognized as being antecedent of customer loyalty to the brand. Thus, Orth and Green (as cited in Machirori and Fatoki, 2011) stated that higher customer satisfaction is related to the higher loyalty of the customer. Therefore, the customer satisfaction and customer loyalty are the associated relationship has been confirmed. Bielen and Demoulin (2007) pointed out that the satisfaction of waiting time is not only direct influences the customer satisfaction determinant, it also moderates the satisfaction-loyalty relationship. On the contrary, that would also influence the customer willing to wait or not (Ly and Loe, 2017). Fig 21. Factors affect customer loyalty
There are many factors affect the customer loyal to the brand which like the quality and brand image etc. (Valentina, 2016).
Brand loyalty is the customer behavior shaped by own preferences. The loyal customer would purchase the goods from the favorite fashion brand no matter the price. P.19
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Based on Day (as cited in Machirori and Fatoki, 2011) pointed out that the customers of true loyalty that must have a good attitude with regard to the products and repeat to purchase. In addition, the attitudinal theory presented by Day (as cited in Machirori and Fatoki, 2011) explained that customer willing to recommend a brand to others is usually presumed to be the indicator of customer loyalty. Boora and Singh (as cited in Saili, Mingli and Zhichao, 2012) claimed that the favoritism and goodwill toward a particular product would deduce the customer loyalty which is the attitude from psychological intervention.
he loyalty of the customer could be explored and measured from two aspects: loyal behavior and loyal attitude (Reynolds and Arnold, as cited in Saili, Mingli and Zhichao, 2012). According to Kandampully (as cited in Saili, Mingli and Zhichao, 2012), purchase behavior, specifically the repeat purchase that is the main part of loyalty. And this is a behavioral loyalty. On the other hands, effective loyalty means customers emotional connection with some fashion retailer based on the shopping experience (Saili, Mingli and Zhichao, 2012).
Fig 22. Customer loyalty program
Many studies have the similar opinion for the loyalty, the researcher state that emotion loyal and behavioral loyal would affect the customer loyalty for the brand.
The studies in the past proved that the customer loyalty and customer satisfaction hold the positive relationship, as well as the waiting time would affect the customer satisfaction and loyalty is known, but whether the loyalty would completely or indirectly influence the customer is willing to wait in the store that needs to confirm.
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RESEARCH METHODOLOGY
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his study was conducted by observation, questionnaire and paper review to investigate the fast fashion brand checkout experience for Hong Kong customer to enhance customers’ satisfaction.
The observation aims to know the fast fashion brand current checkout environment and setting. Also, observe the customer queuing situation and external factor is it clearly affect the shoppers of queuing for checkout.
The observation was conducted on February 9, 2018 and February 17, 2018 in H&M and UNIQLO. The time counted with the stopwatch. The questionnaire aims to assess social attitudes towards certain population in fast fashion brand checkout experience. It is not yet complete and shows later.
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OBSERVATION 1ST OBSERVATION
Details Brand
UNIQLO
Date
9-2-18 (Fri)
Time
5:05pm-6:05pm
Location
Shop 1156-1157, Level 1, YOHO MALL I, 9 Long Yat Road, Yuen Long, N.T., Hong Kong
Counters in use
6 (Total:12)
Customer age group
25-35
No. of people queuing
Average: 13 Max: 24 Min: 3-5
Total no. of people (60 mins)
112
Average checkout time
16 mins
(Including queuing & checkout) Finding
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Queuing line enters almost 1-2 customer in 1 min
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Most customers bought over 5 goods
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Most customers paid by credit card/ EPS (debit card)
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Average checkout time is 4 mins per a customer
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Some customers (42 people) seems felt dull when queuing
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Customers (28 people) show impatience
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Some customers used more time & affect other since individual factor
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When waiting for payment, staff pack items at the same time
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Customer pay by cash that staff pack goods after payment, if there are many items, use more time (around 30s)
Table 1. YOHO UNIQLO observation
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A
bout the checkout environment, UNIQLO use the retractable belt to set the waiting line in "Serpentine" and one waiting line to queue for 12 cashier counters. There is no electronic information boards or TV screen in the checkout area. It is a traditional checkout setting.
Fig 23. YOHO UNIQLO entrance
For the queuing situation, the queuing line enters 1-2 customers every minute and the queue can out 1 people in 45 second. Most of the customers purchased over 5 items and used electronic payment. More than half of customers showed impatience and feel dull (always watched the watch etc.). Most customers came alone and played the mobile phone or focus on the queue movement. 10 customers talked with family and showed a smile. 5 female customers queued with the children and the children were not willing to wait. Thus, the female customers show impatience, anger and wanted to ďŹ nish the checkout earlier.
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OBSERVATION 2nd OBSERVATION
Details Brand
H&M
Date
17-2-18 (Sat/PH)
Time
1:40pm-2:40pm
Location
Park-in Commercial Centre, 56 Dundas St, Mong Kok
Counter(s) in use
1 (Total:6)
Customer age group
25-40
No. of people queuing
Average: 9 Max: 14 Min: 0-3
Total no. of people (60 mins)
45
Average checkout time
8 mins
(Including queuing & checkout) Finding
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Line stopped the movement a long time (since the customer individual factor)
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Most customers bought 1-3 goods
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50% cash payment, 50% electronic payment
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Finish the payment in around 2 mins
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Electronic payment customer waste more time to checkout
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10 customers looked impatient when queuing (bought one item)
Table 2. Mong Kok H&M observation
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A
bout the checkout environment, H&M put the accessory items on the shelves and set the shelves to be the "serpentine" queuing line. There is one waiting line to queue for 6 cashier counters. There is no music and TV screen provided. For the queuing situation, the queuing line enters 4 customers in 5 minutes. The queue can out 1 customer in around 2 minutes. Most of the customer purchased about 1-2 items.
Fig 24. MK H&M
Only one checkout counter was available that 10 customers showed impatient when they were in the queue since they bought only one item and 2 out of them talked about the queue situation in the phone. Besides, 26 out of the customers focused on the items of shelves in the waiting line that did not show impatient and 6 of them really purchased the items which in the shelves of waiting line. The payment averagely ďŹ nished in around 2 minutes and the queuing time about 6 minutes.
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OBSERVATION Preliminary result of observation
I
n this observation, the checkout waiting line of H&M and UNIQLO is similar. Both set into "serpentine". According to Haynes (as cited in Zijlstra and Mobach, 2011), the spatial layout could be the effective way to positively affect the situation of queuing. And the "serpentine" queuing is one suitable way to positively affect the customer queuing situation.
Moreover, the problems of checkout have been seen. There is the external factor from the environment affect the customer queuing for checkout experience. Fig 25. MK H&M cashier
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he queuing environment would aect the customers. The example of H&M, the queuing time need around 6 minutes that the customer may be perceived more than the actual.
Fig 26. YOHO UNIQLO cashier
However, more than half shoppers focused on the shelves items of the queue which diverted the customer attention of waiting and inuence their time perception, these customers did not show impatient. The result is matched with Borges, Herter and Chebat (2015) and Lambrecht and Tucker, Wang and Usunier and Valette-Florence (as cited in Liang, 2016) and van Riel et al. (2012).
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PRELIMINARY FINDINGS
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or the preliminary finding, most of the studies stated that waiting will lead to development of customers’ negative emotion thus influencing their satisfaction.
Fig 10. Negative emotion
Past studies confirmed that the store environment would influence the customer emotion and time perception.
Fig 24. MK H&M
The example of H&M in observation in above also proved that the items on shelves next to queue can divert customer’s attention from the wait.
Moreover, customers that bought 1-2 items are more likely to be impatient. This showed that purchase value is linked to the perceived waiting time. It is matched with the result of the study by van Riel et al. (2012). After that, the questionnaire is important to find out that will brand loyalty affect customer queuing willingness and which external factor influence customers the most.
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PRELIMINARY SUGGESTIONS
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he initial suggestions are to manage and improve the waiting area external stimuli such as music and recreational facilities etc. can be added into the checkout environment in order to maintain the customers’ positive emotions and to divert the shopper's attention to influence their perceived waiting time.
Fig 14. Psychological time & objective time
Fig 27. fast fashion store queue setting
The staff working situation is also one of the problems that need to be improved, it is proposed that more staff training could be arranged to create the more comfortable checkout environment that suits the customers’ needs to enhance the satisfaction.
Other suggestions will be proposed after the completion of the questionnaire.
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REFERENCE
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PHOTO REFERENCE
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Thank You
IMPROVE the (queuing for) checkout experience for Hong Kong fast fashion customer
Lau Lok Yi BA (Hons) International Fashion Business Nottingham Trent University 2018 -2-
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