5 Senses of Retail by Olga Loboda

5 senses of retail

olga loboda Project work

Coordinator: Professor Roberta Crespi Universitaâ&#x20AC;&#x2122; Cattolica del Sacro Cuore di Milano Master in Luxury Goods Management 2014-2015

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table of contents A Lasting Impression .................................................................................................4 Senses in Theory .......................................................................................................6 I. atmospherics effects ...............................................................................................6 II. PAD dimensions ......................................................................................................9 III. approach-avoidance paradigm ..............................................................................9

SIGHT ..................................................................................................................................11 I. wavelength .............................................................................................................14 II. warmth vs. coolness .............................................................................................15 III. intensity ................................................................................................................16 IV. retail zoning ..........................................................................................................16 V. lighting ...................................................................................................................21

SCENT .......................................................................................................................23 I. congruence ............................................................................................................26 II. time perception .....................................................................................................26 III. retail zoning ..........................................................................................................27 IV. intensity ................................................................................................................27 V. specialists in retail scenting ..................................................................................28

MUSIC .......................................................................................................................33 I. background vs. foreground ...............................................................................................37 II. music tempo .....................................................................................................................37 III. volume .............................................................................................................................38 IV. retail zoning .....................................................................................................................38 V. specialists in retail music .................................................................................................39

TOUCH ......................................................................................................................41 TECHNOLOGY .......................................................................................................49 Implementation obstacles .............................................................................54 Consclusion ...........................................................................................................56 BIbliography ...........................................................................................................60

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A Lasting Impression

In-store customer experience has an enormous importance in the luxury retail and services. Store environment has long been recognised as an important and fundamental aspect of a brand image (Bitner, M. J., 1992; Baker, J., Grewal D., Parasuraman, A., 1994; Baker, J., 1998; Baker, J., Parasuraman, A., Grewal, D., Voss, G. B., 2002). Customersâ&#x20AC;&#x2122; experience, effort, time spent in store and other psychological factors after only one visit can determine their perception of the merchandise, the brand value and can influence the future probability of the store choice (Zeithaml, V. A. 1988). An unforgettable customer experience is what most of the luxury brands are struggling for in the recent years. In the current intensely competitive field, brands start looking for new ways of making profits and attracting new customers. With e-commerce evolving on one side and customers expectations rising on another, it becomes quite difficult for companies to surprise their clients and innovate in the retail environment. This work describes a way of providing an additional value in the retail setting through the very primary elements: human senses. Literature analyzing how senses influence customer behaviour in the retail and service environments is quite vast. However, most papers focus on one of the five senses and few authors summarized all effects in one paper. Moreover, luxury retail has never been a focal point in any of renowned works. Some papers contain only a few examples of department stores and upscale restaurants (Areni, C. S., Kim, D., 1993; Milliman, R. E., 1986). This work takes luxury retail as a point of reference and applies the findings to the practices of top luxury brands. The sensory cues that are analysed in this paper are sight, sound, scent and touch. Taste is excluded from the analysis as, according to Kotler (1973), it does not apply directly to the concept of atmosphere. Instead, technology is added in order to complete the set of atmospherics in the nowadays retail environment. Contemporary authors already included this chapter to literature concerning consumersâ&#x20AC;&#x2122; sensorial experience and it is expected to have a long way to develop.

senses in theory Senses were proved to play a crucial role in memories and emotions (Lindstrom, M., 2005). They work bypassing the intellectual processes and directly affect our attitudes and behaviors (Gibson, J., 1966). Sensory memory stores information that was being received for a later processing. It is afterwards transferred to the short-term memory, followed by the long-term memory storage. The intensity of senses involved and the emotional level that they allowed a person to achieve have a direct influence on whether memories will be stored in short-term or long-term zones. That is why senses play an important role in reaction patterns, which depend on novelty and relevance of information or signs (Jansson-Boyd, C. V., 2010). But, even though it is a well-known and documented fact that the five senses have an impact on the human behaviour (Hulten, B., Broweus, N., Van Dijk, M., 2009; Krishna, A., 2010; Lindstrom, M., Kotler, Ph., 2010), their significance is still underestimated by many brands. For instance, Celine does not have a specific strategy regarding sensorial experience and only implements the same color palette in its shops, but no music, smell, or anything else that might be attractive for shoppers. Very few brands on the luxury scene today were able to create an unbelievable sensorial journey that differentiates and upscales the image.

I. atmospherics effects Brand personality is a combination of both physical and psychological elements that are transmitted through communication channels and points of sale. Baker (1987) determines three dimensions of a store environment: design, social and ambient. Marketing researchers mainly consider the first two a whole: store atmospherics; whereas environmental psychologists distinguish between all these factors in the analysis of retail and response patterns. They suggest that store ambience triggers non-visual senses, and has important effects on the design part as well, which is only visual in nature. Stimulation of senses can enrich the psychological characteristics of a brand and its image. Congruent sensory techniques are able to convey a message, transmit information about the products (for example, merchandise quality) and even set a certain mood. Most interestingly, they provide retailers with a differentiating component that is not technically feasible online yet and is not widely adopted (Lam, S. Y., 2001). Another important factor that cannot be performed online is the communication with sales people, that was proved to seem more credibile and persuasive with sensory techniques if they underline a prestigious brand image (Sharma, A., Stafford, T. F., 2000). Philip Kotler (1973), who introduced the theory of atmospherics, back in the 70s stated that atmospherics become an exceptionally important marketing tool when products target distinct social classes or lifestyle buyers. They add class-related qualities and additional experiences to the products. Fashion and luxury industries sell their unique lifestyles; clothes serve as elements of appearance and class distinction from ancient times. Hence, in luxury retail businesses atmospherics are essential in supporting and differentiating brands and their positioning. -6-

Kotler identified three effects of atmospherics in the retail space: 1. attention-creating medium: differenting among competitors and attracting

attention of the customers;

2. message-creating medium: expressing the brand identity and communicating target groups, brand recognition;

3. affect-creating medium: influencing the emotional level of store visitors, their arousal and motivations.

These three levels have a high impact on an overall customer experience, shaping a deeper individual level and associations with a brand, and contributing to the final purchase.

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effectiveness attitudes perceptions temporal effects behavioural responses

II. PAD dimensions The surroundings of a store have an impact on the attention, perceptions and information processing of clients. A Kotlerâ&#x20AC;&#x2122;s theory of atmospherics analyses the so-called top-down effects, how the brand can influence psychological states of consumers. Instead, a widespread theory analyzing the cognitive steps and states of the receivers, or shoppers, was established by psychologists Mehrabian and Russell (1974) demonstrating that various environments, such as schools, hospitals and homes, have a certain effect on our emotions that can be described as three states: pleasure, arousal and dominance (PAD). The PAD dimensions have been further widely used by other psychologists as well (Donovan, R., Rossiter, J., 1982; Bellizzi, J. A., Hite, R. E., 1992; Babin, B. J., Darden, W. R., 1995). The first step, pleasure, characterizes whether customers find the surroundings enjoyable or not. Arousal defines how they are stimulated by the environmental factors. For instance, classical background music was proved to slow down the pace of the clients and make them stay longer in stores (Milliman, R. E., 1986). And finally, dominance, concerns whether receivers feel dominant over the stimuli or submissive (under control). However, Donovan and Rossiter (1982) have reported that the last dimension cannot be really analysed in retail environment and is not relevant for it. The studies of Donovan and Rossiter have also produced important findings about the influence of an environment on the time that customers spend in a store, the way they behave and the amount of money they spend.

III. approach-avoidance paradigm In addition to that, Mehrabian and Russell (1974) suggested another theoretical model in the use of atmospherics: an approach-avoidance paradigm, where the environment might either incourage or discourage specific behavioural patterns. They presented these two opposites in four categories: time, exploration, communication, and satisfaction. Time measures how much customers are willing to physically stay in a store or how soon to get out. Attactive environment encourages individuals to enter in a store and rises store traffic. Exploration measures the level of curiosity aroused by an interior. Communication parameter depends on whether the environment and sales team are comfortable and disposal enough and how shoppers are therefore inclined to enter in contact with them. Satisfaction describes the outcome of an overall shopping experience and the intention to come back. However, it might be difficult to bring all of these elements to a high level. For instance, bright orange might attract clients, but prolonged exposure to this color will make them leave soon. Dark colors can suggest mystery and entice exploration, but are not attracive from outside in the daylight. Neutral colors might minimize status differences and thereby encourage greater social interaction but again are difficult to make prominent. A careful design elaboration and selection of multiple coherent sensorial elements can make the store work in different balanced ways. A well-designed strategy neutralises some points and strengthens other to differentiate the brand image. Most effects of atmospherics can be divided in five categories: effectiveness or financial returns, attitudinal, perceptual, temporal effects, and behavioural responses (Garlin, F. V., Owen, K., 2006). Some variables are stronger in certain categories and do not have any effects in other; some atmospherics cover all of the five categories. The present work describes how each sense is effected by certain atmospherics and how clientsâ&#x20AC;&#x2122; perceptions and behaviour can be managed through their use. -9-

SIGHT

In marketing and retail the sight sense has always undoubtedly dominated. It is the most common retail and branding medium. Interior design and colors of the store are the parameters that attract clients and have a large potion in all three of Kotlerâ&#x20AC;&#x2122;s atmospherics effects. Sight is the dominant sense among the others which allows us to differentiate the brands, to choose pieces and to make purchase decisions. Colors in the retail space are the elements of design and are dominant in evoking certain emotions. Colors influence our mood states and might cause a variety of reactions from pleasure and relaxation to irritation and disturbance. Colors allow to transmit the desirable image and are the first to stimulate associations with the brand: black and white color combinations are strongly associated with Chanel and Dior stores and brown and gold with Louis Vuitton and Gucci. Colors convey aesthetic and symbolic values and have to be carefully selected and coherently represented in all points of sales. Middlestadt (1990) confirmed that colors influence attitudes towards products. He performed quite a simple observation by presenting a pen on blue and red backgrounds with an ambient color respectively. Participants exposed to the blue conditions expressed more positive attitudes towards the product and it was perceived as a more pleasant, elegant, higher in quality and expensive. Blue and red are almost opposite colors on the color spectrum. They have different qualities and are able to trigger totally different emotional responses. Choice of colors in a retail environment is an essential step that can cause diverse reactions.

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The main characteristics of colors relevant in the retail environment are wavelength, warmth vs. coolness and intensity.

I. wavelength Colors with longest waves produce high emotional effects and induce related mood states (Schaie, K. W., Heiss, R., 1964). Red is the color with the longest waves and is in fact characterized as active, adventurous, energetic, vital and rebellious. Yellow is another active color with shorter waves than red, that is considered as cheerful and intellect stimulating, but it was discovered to be a not very popular, too dominating and advance color (Sharpe, D. T., 1974). Long wave colors are not favorable in retail and are usually associated with educational, service and fast food environments (they are also confirmed to increase appetite). Luxury brands tend to avoid these active colors in their stores design, because they are associated with intensity and agitation, that are not suitable for a luxurious ambient. Instead, blue and monochrome colors are more favorable for upscale retailers. In general, blue is quite a favorable color considered to indicate well-controlled emotions and behaviour, suppression of feelings, security and trust (Sharpe, D. T., 1974). This is why it is common to see blue in the display of mens formalwear and special occasion brands such as Boggi and Kiton.

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II. warmth vs. coolness Many color psychologists believe that people can be sensitive to two different sides of a color spectrum and can be either warm-color-dominant or cold-color-dominant. Warm-color oriented ones are sociable and integrated, whereas cold-color ones tend to be reserved and not so adaptive to new circumstances (Birren, F., Secaucus, N. J., 1961). In a more profound behavioural analysis the warm-color selectors showed shorter reaction times and a more open receptivity of outer conditions. On the other hand, people choosing cold tones were found to be more selective in their choices of products and less distracted by noise and other stimuli. Hence, according to this statement, blue, being the extreme color of a cold palette, is again found to be a color of formality and conservatism. Another interesting fact, that came out of a research on environmental colors and consumers feelings towards them, is that warm colors are perceived lighter than the cold ones, even if they are actually of the same tonality (Bellizzi, J. A., Crowley, A. E., 1983). Indeed, children wear specialised stores are usually colored in warm palettes, because the atmosphere has to transfer purity and innocence. These small details can help in building an effective concept and retail strategy. The wamth and coldness of colors do not refer to monochrome shades, however. They are considered as neutral and calm tonalities and are frequently used in refined boutiques and concept stores (see the detailed description of neutral and other palettes on the next page).

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III. intensity Colors also can be distinguished by intensity: as heavy (Red, Black, Purple, Blue) and light (Yellow, Orange, White, Pastels). Use of different color intensities in a store layout can result in target diversification by age and gender. It is a common tool in zoning of a store or a department store. For example, pastels always characterize children departments. Bright colors represent teenage sections, active lifestyle and sports products, especially red, that increases the blood pressure and therefore reminds of physical activities (Garrant, C., 2014). Whereas heavy and darker ones symbolize masculine, mature style and exclusivity (Armani, Burberry, Kiton stores, as well as several hard luxury boutiques).

IV. retail zoning Certain color palettes can precisely define a target group of a brand, help in identification of the merchandise style, occasion of use and zone different departments in a store.

White represents simplicity and purity; in fact, many skincare brands use it in packaging (Moroz A., Y., 2013). Is a color standing for modernity as well. White is commonly used in contemporary spaces and concept storesâ&#x20AC;&#x2122; layouts that target innovators. White is also used in the renovated store interiors of luxury brands that are currently being repositioned: Saint Laurent, Dior and Kenzo (see next page).

Black is a color of sophistication (Moroz A., Y., 2013) and, as mentioned before, is an iconic color of top luxury brands used in labeling and store design: Chanel, Dior and Dolce&Gabbana. Black is also a common color for highend make-up brands (Lancome, MAC, Bobbi Brown and many others) and is broadly used by low-cost cosmetics to reach a more refined and upscale image (Moroz A., Y., 2013).

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Powder pastels are used to create a very feminine and dreamy image (Miu Miu and Chloe’ concepts, Valentino store concept in Paris). They are considered as sentimental, loving and spring-like (Xerox, “Psychology of Color”).

Warm shades of ochre, like brown, beige and gold, are truly luxurious colors and are seen as inviting, reassuring, secure and associated with expensive and high-quality materials, such as gold, cashmere and wood (Porter, J., 2012). These colors are frequently featured in the most sophisticated luxury boutiques: Hermes, Bottega Veneta, Louis Vuitton, Gucci, - as well as in jewelry stores: Cartier, Bulgari, Chopard, Pomellato and others. These colors are also used to target older clientele: Brioni, Ralph Lauren (main line), Loro Piana.

Dark red and burgundy are concerned luxurious colors as well, associated with wine and antiqueness. Burgundy actually takes its name from a region in Central France, a well-known wine producer (Dictionary.com, “Burgundy”). In fact, several brands use dark red in store design (Dolce and Gabbana) and logos (Cartier, Brioni).

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Saint Laurent store at Alexandra House, Hong Kong

Saint Laurent store in Greene Street, New York

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Saint Laurent store in Sloane Street, London

Saint Laurent store in Via Sant Andrea, Milan

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IV. lighting Colors can become a much more powerful tool if used together with carefully selected type of lighting. Lighting has a capacity of creating a certain mood and is therefore helpful in supporting an image, that a brand wants to transmit, and a specific occasion of use of the merchandise presented. Dark heavy colors and muted lighting are associated with expensive products and are widely used in expensive outerwear stores (Moncler, Fendi and other leather and fur brands) and hard luxury boutiques. On contrary, white light-filled store is common in innovative and fashion forward stores, like Colette concept store in Paris, Kenzo, Opening Ceremony, Marc by Marc Jacobs and Saint Laurent (recent renovated design) stores. Colors, together with lighting, are able to produce certain biological and psychological reactions in individuals. Specialists consider that high quality lighting can be achieved when the mood created with the lighting and colors is consistent with the brand image or function of the department (childrenwear should always be light and clear) and when it does not irritate or block store visitors in any way (Rea, M., S., 1999). Congruent and pleasing lighting enhances sensations of well-being and comfort. Lighting can also be a focal point of atmospherics alone. It is a powerful tool that is able to create an unbelievable environment and make up a particular appearance of the merchandise, and a store in general. Louis Vuitton store in Ginza (on the left page) is an amazing example that shows how lighting can shape an unforgettable and unique store image. Retailers can transmit various mood states by following studied psychological indications of visual cues and colors and their influence on consumers. Visual elements of a store design are fundamental at different steps of the shopping experience, from customersâ&#x20AC;&#x2122; attraction to the merchandise choice and final purchase. They help in drawing attention to a store, its specific areas, and creating an overall remarkable experience that can trigger positive and distinguished associations with the brand.

scent

The human nose is able to recall 10000 scents (Russell, B. C., Goldney, J., Gunning, S., 2008); and 75 percent of our emotions are influenced by the smell that we receive (Lindstrom, M., 2005). Indeed, smell is considered to be the most emotion-related human sense. It affects the brain zones that deal with our feelings and motivations and influences our behavior patterns (Song, J., 2010; Spangenberg, E. E., Crowley, A. E., Henderson, P. W., 1996). Indeed, when you enter in a cheap mass market store with a heavy scent that is not plausible to you, you want to escape as soon as possible. Apart from having certain effects on our behaviour and perceptions that are described later in this work, fragrances are known for recovering stress, anger, apathy, depression and cause relaxation, motivation and positive mood (Spafinder.com, “Aromatherapy: Scent with Intent”). Studies of these effects take a start in ancient Egypt, China and India, where aromatherapy was a well-known practice and scents were used in personal care, medicine and religion (Kumar, S., 2004). Aromas and fragrances went mainstream and in the recent years people have an increased interest in the use of scents in their everyday personal environment and surroundings. Sales of perfumed body oils and aromatherapy products experienced an annual increase of 15 percent over the last two years (Spafinder.com, “Aromatherapy: Scent with Intent”). In the commercial and public environments, like retail, hotelier, medical and restaurant businesses, locally customized, selective and unique scents are predicted to play a bigger role (Aspostoli, A., 2014).

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Scents have a very unique property that none of other senses possess in such extent: scents unconsciously remain in our memory for a very long time and can trigger past memories and feelings when an individual is exposed to a scent that he or she is already similar with. As reported in the Daily Telegraph, smell has a great recall, even better than a recall of a familiar sound (Collins, N., 2012). Therefore, a brand and related memories to a previous store visit have a higher probability of being recalled in consumers’ minds if a unique, congruent and remarkable scent is present. A research proved that scented stores create significantly more favorable perceptions, better evaluation of products and higher intentions to buy them. Scented stores even appear to be more modern in the minds of customers. Clients also showed higher intentions to re-visit such stores again in the future (Spangenberg, E. R., Crowley, A. E., Henderson, P. W., 1996).

I. congruence Congruence of a scent with the store environment is essential to achieve desired aims. Congruent with the merchandise, brand image and store layout scents are easier to be processed in consumers’ brains. Therefore they set up a more fluent and pleasing ambient basis for further in-store observance (Mitchell, D. J., Kahn, B. E., Knasko, S. C., 1995). Apart from an easier processing of merchandise information, a congruent scent also provides a better ground for approach behaviours and message transmission. The Haberland research (2012) confirmed that weak arguments can be supported by olfactory cues, up to an increase of 29% in intentions to buy. “Weak arguments” are not only weak communications of sales personnel. Scent was also proved to influence “weak” or doubtful and neutral states of store visitors, when they are not certainly sure about the purchase. Nevertheless, scents are not able to influence clearly positive or negative buying decisions (Isen, A. M., Shalker, T. E., 1982). It can become a very interesting advantage in luxury stores, where doubtful conditions are frequent because of high pricing levels of products, high fashion content or an uncommon occasion of use (pink-colored fur coat). Thanks to multiple positive factors influencing an overall appearance of an environment and perceptions related to the merchandise, scents were reported to nearly double sales in several retail settings (Russell, B. C., Goldney, J., Gunning, S., 2008).

II. time perception Another interesting for luxury retail fact about scents effects is the time perception. Several research papers describe that the perceived time is significantly less in the scented stores than in the neutral ones. A scented environment influences not only general time perceptions, but also specifically time spent in lines, examining merchandise and waiting for help seems much shorter with the presence of an ambient scent. It is a great finding for the luxury stores owing to the following factors: 1) The best-acknowledged luxury brands have several lines, divided by gender, mainly, and sometimes by age (children and junior collections) and pricing level (for instance, Armani Exchange, Armani Jeans). Different lines can be situated in two single-standing near-by stores, if it is not a big flagship and department stores. So, when couples and families shop together, someone always has to attend another. But with a scent presence, shorter time perceptions can reduce stress and irritation. - 26 -

2) Frequently, luxury environment induces relaxation and slow shopping. Luxury can actually be defined as “a condition or situation of great comfort and ease” (Merriam-webster. com, Luxury definition). Decreased time perception will help in making a balanced perception of "not spending too much time shopping". However, scents influence only the perception of time spent in store and cannot increase actual time one spends while shopping (Spangenberg, E. R., Crowley, A. E., Henderson, P. W., 1996).

III. retail zoning The associative properties of scents make the zoning of the retail space through atmospherics possible. For instance, Bloomingdale’s uses scents in zoning of different departments: baby powder for infants section, suntan lotion scent for bathing suits, lilacs in lingerie department and cinnamon and pines in related sections when summer holidays are coming (Fetterman, M., O’Donnell, J., 2006). A spacious Armani flagship store in the center of Milan has slight variations of the same scent in different departments: sweeter in womens, fresher in EA7, Armani Junior and Sports lines (that target a yonger clientele) and less present in the mens department.

IV. intensity

experience complexity/intensity

Yet, all the positive factors of a scented ambience in a store can function only if the scent does not irritate the clients. One of the critical factors is the aroma’s intensity, that might totally change its evaluation: strong ones were evaluated negatively, as disturbing, by clients (Henion, K. E., 1971). The scent has to contain a sophisticated combination of fitting aromas. It doesn’t have to be “too something”: too sweet, too masculine, too patchouli, etc.. It should be intriguing and inviting, present but not dominant, remarkable but not loud. Wundt Curve can be used to describe the typical pattern of “liking” of a scent. (Anand, P., Hoolbrook M. B., 1986). It is a bell-shaped curve that represents an impact produced by a certain experience or activity. As an experience’s complexity and intensity increase, its effect/influence on individuals increases as well, but only up to a certain point, after which it becomes too concentrated and disturbing, therefore the effectiveness of an experience starts to decrease. It is a theoretical explanation of how a scent that is pleasing but too intense contributes to negative emotions and avoidance.

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V. specialists in retail scenting The scent has to be congruent with a store, merchandise, pricing level, brand message, target characteristics (gender, age, lifestyle, etc.), location and many other related factors. Many brands have already introduced ambient scents in the retail environments. For instance, Gucci, Dior and Prada have very pleasant remarkable and not irritating unisex scents in the stores. Valentino implemented two gender specific scents: in the womens store it is probably too sweet for an ambience, that can seem too present for many clients and even cause negative biological reactions for individuals suffering allergies. Choice of the retail scent is a complicated and responsible procedure that requires professional assistance. Individuals are able to remember distinctive scents and recall situations and experiences they had when they first felt it. A precise and careful attention in selection of a store aroma will influence positively the first impression of customers, that is priceless. The easiest and most common way is to create it together with such companies as Scent Air, Air Aroma and Air Q. They are specialised in all scent-related marketing activities: from producing scent samples and integrated scent diffusion systems to product scenting. These companies help retailers in crafting signature fragrances and provide the right diffusing equipments for their spaces. Some of the important clients of Scent Air are American Eagle, Bloomingdaleâ&#x20AC;&#x2122;s, Hugo Boss, Hallmark, Hilton, Saks Fifth Avenue and even Sony (Scentair. com, Homepage). Air Aroma works with Louis Vuitton, Jimmy Choo, Cartier, Saks Fith Avenue, Max Mara, Zara, United Colors of Benetton, Mariott and surprisingly, such clients as Singapore airlines, General Motors and Bank Societe Generale (Airaroma.it, Clienti). The two main ways of scenting a store are continuous and instant types of diffusers. Instant diffusers are scented candles, incense burners, wall plug-ins and reed diffusers. They are usually used in small boutiques and restaurants. Continuous are diffusers that can be either portable or wall hanging and are used in larger stores. Air Aroma's Aroscent and Aroscent Pro flat-line diffusion systems are among the most popular products that â&#x20AC;&#x153;guarantee a constant level of scent regardless of the quantity of fragrance left in the cartridge compared to other scent methods on the marketâ&#x20AC;? (Air-Aroma, Aroscent).

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â&#x20AC;&#x201C; Vanilla mixed with florals creates a soft tropical smell. Vanilla and woodsy scents create a slightly sweet but delicate and sophisticated deep aroma. â&#x20AC;&#x201C; White florals, such as gardenia and jasmine, are very strong on their own and are too straight-forward as an ambient scent. But if white florals are blended with rich spices the scent becomes soft, smooth and passionate. â&#x20AC;&#x201C; Musk notes work well with citrus scents. The citrus notes lighten the intensity of the musk. On the contrary, simple citrus becomes more complex and inviting.

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Uplifting

Relaxing

Basil

Bergamot

Cedar Wood

Cinnamon

Eurcaliptus Geramum

x x

Jasmine Lavender

Stimulating

x x

Lemon

Lemon Grass

Neroli Orange

x x

Patchouli

Peppermint

Pine

Rose

Rosemary

Sandal Wood

Ylang-Ylang

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music

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Music is one of the most commonly used atmospherics in retail, hospitality and restaurant businesses (Oakes, S., North, A. C., 2008). Music selection in retail influences behaviour patterns of store visitors, their mood states, level of arousal and pleasure. It is able to affect the perception of products, prices, perceived time spent in store and other crucial aspects of a shopping experience (Grebosz, M., Wronska, B., 2012). A research showed that music has a greater influence in stores with personal lifestyle merchandise (Jain R., Bagdare, S., 2009). Especially in luxury retail environment music is a crucial tool that, with a help of different tempo, rhythm, volume and genre types, might target different crowds. Music is able to create a specific atmosphere that customers can enjoy, and stay longer, or not, and leave soon. With longer time spent in store people are exposed to more merchandise and can get a better impression of the store and brand if they enjoy music. Longer time, higher exposure to the goods and positive response all together create a better probability of a final purchase. That is why music selection is another atmospheric that can influence different steps of shopping up to a final purchase.

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I. foreground vs. background First of all, there can be two different types of music: foreground (with a presence of dominating lyrics), typically used in mass market stores, and background music (instrumental and neutral, more restricted with volume and tempos), that we usually hear in upscale boutiques. Previous research showed that music effects depend on the age of a shopper (Yalch, R., Spangenberg, E., 1990). Older people tend to like background music and spend more time in a store when it takes place. Younger customers mainly respond to foreground music since it is more familiar to them (Song, J., 2010). Nevertheless, familiar does not mean better. Interesting correlations can be drawn when analyzing the effects of familiar foreground music. Kellaris and Kent (1992) explained that clients perceive to spend more time when foreground music is on, because a greater amount of information (with higher complexity) has to be processed by the brain. Additionally, Ornstein (1969) stated that time appears to be longer if a person is able to remember more about a specific moment. Which is the case of foreground familiar music that attracts much more attention and makes clients remember its components (with lyrics and diverse construction, contrary to repetitive and chilling background music), store more information about the experience and, therefore, believe that more time has passed. Other researchers proved that even though familiar, which is mainly foreground, music in shops increases the emotional arousal of individuals, it shortens the time they spend in a store (Fontaine, C. W., Schwalm, N. D., 1982; Milliman, R. E., 1982). Foreground music makes individuals think of shopping for a longer time and leave earlier, as a sequence spending less time in store. In luxurious environments shopping is a ritual and foreground music might simply not fit in the environment of a store, especially if these effects take place. People tend to spend a lot of time in the luxury stores and a longer time perception might become a cause of inappropriate rush. On the opposite, background music creates a slowpace calm ambience that perfectly fits the luxurious environment.

II. tempo Another important factor of music in the retail environment is tempo. It was observed that attention of store visitors diminishes when fast tempo music is played (Chebat, J.-C., Gelinas-Chebat, C., Filiatrault, P., 1993), but it produces no effect on enjoyment (Caldwell, C., Hibbert, S. A., 2002). On the other side, slow tempo music enhanced satisfaction, relaxation and concentration (Babin, B. J., Chebat, J. C., Michon, R., 2004). It was proved to be associated with high scale stores and superior quality of merchandise and service (Eroglu, S. A., Machleit, K. A., Chebat, J.-C., 2005). A study by Milliman (1982) revealed that slow tempo music results in slower traffic pace, higher sales volumes and up-selling (higher priced products sold), especially if it fits a brand image, but it has little arousal effect. However, arousal does not have a big importance in luxury stores and is more relevant for mass market, where purchases are faster and more impulsive. With slow tempo music people tend to spend more time in a store, resulting in less purchases but more money spent per check. Interestingly, the same pattern works in other industries. A study by Areni and Kim (1993) revealed that classical background music influenced clients to purchase higher priced wines at a wine store. In restaurants slower music caused longer dining times and also an increase in bill of up to a 29 percent (Lindstrom, M., 2005).

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III. volume One of the most crucial constructs of retail music is its volume: a study by Smith and Curnow (1966) showed that high volume music resulted in less time spent in a store, in comparison to soft music. Volume can influence the perception of a brand from outside of a store. We are used to hear such stores as Bershka, Alcott and Tally Weijl from far away and perceive them as low-scale teenage brands. Whereas luxury brands, or low to medium priced brands that aim to create a sophisticated image (for instance, & other stories), play medium to low volume music. For instance, Valentino has barely hearable blues music played in its stores. Fendi, Prada and Dior play soft pop music at low volumes. Burberry has another strategy and has foreground brit-pop music in its stores, which actually fits the image and is present in all its campaigns. And, on the contrary, Versace and Louis Vuitton have foreground pop music in their stores. It fits the flash image of Versace, but it is quite strange to hear this type of music in a Louis Vuitton store. The ground floor of Louis Vuitton store in via Montenapoleone looks like an old-style supermarket with vendours behind counters and only leather goods and accessories exposed on the wall shelves (apparel is presented on different floors). Probably, the concept of a luxury supermarket together with foreground music does not make people stay long, it speeds up purchases, maximizes profits and simplifies purchase processes for tourists who already know which bag they want. Nevertheless, this type of music can have a negative effect on a luxurious brand image, brand positioning and a desirable customer profile (Morrison, M., Beverland, M., 2003; Oakes, S., 2000; Michael et al., 2006).

IV. retail zoning Exactly as scents, different music formats can be used in different retail zones simultaneously. Retail zoning by music can help in targeting very distinct shopper segments. Zara is a great example of music zoning, even though it is a mass market brand. In its big multiple-storey flagships Zara divides between its two classical, more adult lines, where soft pop music is played, and TRF, a younger line, where techno and electronic music is present. Luxury brands and department stores rarely use retail zoning by the music type, but it would be interesting to see how they can implement this tool. Music and scents in store are flexible elements; they can be tailored to certain events. The most common â&#x20AC;&#x153;special editionâ&#x20AC;? of these two atmospherics is Christmas holidays time, especially for department stores. Related music is played almost everywhere and some brands even use a thematic scent of cinnamon, spiced apple, Christmas cookie or frozen pines in their stores. A research showed that if music and scent arousal are congruent in the retail environment, the store is rated more positively (Mattila, A. S., Wirtz, J., 2001). So a multiple use of event-related atmospherics will rise the affectiveness of a store.

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IV. specialists in retail music Music is relatively inexpensive to provide, is easily changed, and is thought to have efficient appeals to individuals of targeted age groups and lifestyles (Spangenberg, E., Yalch, R. F., 1993). Unfortunately, music might be a cause of violating copyright laws, in this case these are called "Neibouring Rights". However, there are a few services that give a solution to the copyright problems. Muzak, for example, is a distribution service specialized in retail businesses. It provides music at a general fee (between 80$ and 120$ per month) and royalties, or licensing fees, for the copyright that are paid to the American Society of composers, authors and publishers (ASCAP) or to the Broadcast music Inc. (BMI). It works as an intermediate between the retail or other establishments (restaurants, salons, etc.) and the music producers. A part of a payment at the end of this chain arrives to the sources, musicians and compositors. The licensing fees vary from $200 to $2000 per year, which depends on a square footage of establishments. A new alternative to this type of music providers is satellite radio (Sirius or XM). It offers a variety of music services, a selection of different genres, for around $300 including licensing fees. However, there is an exception for small business entities. Restaurants and bars that are less than 345 square meters and stores with less than 185 square meters space are allowed to play broadcast radio and television without permission. But in luxury retail these two channels are quite uncommon and brands always carefully select music that is played in their points of sale. Even though music is the most wide spread and used atmospheric, and it seems to be the easiest part of the store image, its selection can drastically change customersâ&#x20AC;&#x2122; perceptions and shopping paths. Music has to be an element of a retail image as much as its style and colors.

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touch

Touch seems to be our most metaphysical sense. Fingers of human hands alone have more tactile receptors than the entire surface of a back does (Hulten, B., Broweur, N., Van Dijk, M., 2009). Our hands help us to discover the surroundings and provide an essential link between objects and the brain. When receptors register a pleasant touch the brain releases oxytocin, a hormone that generates feelings of well-being and calmness (Hulten, B., Broweur, N., Van Dijk, M., 2009). Touch is undoubtedly an interesting atmospheric, that is rarely analysed in the literature and usually dismissed in the retail field. However, it can help luxury retailers to increase clients loyalty and to make an experience pleasing and memorable.

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Peck and Childers (2006) in their work introduced a term "need for touch", which means "preference and motivation for gleaning information through touch" (Peck, J., Childers, T. L., 2006). They described that this specific need has two dimensions: instrumental and autotelic. Instrumental one represents the motivation-driven concept of touch as a mediator and a tool that helps us to investigate the quality and characteristics of the product. On the other hand, auto-telic concept is an unconscious hedonic-driven stimulus to touch a product for enjoyment, arousal and sensory stimulation. The “need for touch” is in human nature and has different arousal levels in different individuals. Peck and Childers found out that clients with higher “need for touch” purchase more impulsively than the ones with lower indicators. This metric is definitely not an easy thing to measure, but it is an interesting fact that a certain amount of store visitors has a physical need to touch the merchandise and surroundings. Another literature source also confirmed that if any product possesses an acceptable quality, tactile investigation can trigger positive responses among clients (Grebosz, M., Wronska, B., 2012). Therefore, store managers should allow their consumers to touch the product, and interior designers should not build any obstacles between clients and products. Of course, in luxury stores sometimes highly expensive products cannot be easily reached. In this case, sales associates always have to be ready to show the product and allow to tactically investigate it. Hard luxury vendours are aware of these facts and use pleasing to touch materials in exposition and when presenting pieces. However, not all of the luxury fashion brands put attention to this metric of atmospherics. Fabrics and carpeting in the interior do not always fit a brand’s idea of an image. For example, a new concept of Saint Laurent stores does not create a pleasant tactile experience. It is a marble-made store with cold lighting and colors. On the other hand, Bottega Veneta successfully uses the tactile elements in its store interiors. The flooring, lining of shelves and drawers (where small leather goods and accessories are presented) are made of a pleasing suede velvet carpeting, that triggers tactile sensations. It makes a very pleasing and comforting effect on clients and adds exclusivity to the merchandise exposed. Luxury brands are well-acknowledged for the quality of their goods and a pleasing touch of expensive materials will always increase positive responses and confidence about the choice among clients.

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Fendi store in Rodeo Drive, Beverly Hills

Hermes store in Rue de Sevres, Paris

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Bottega Veneta store in Madison Avenue, New York

Bottega Veneta store in East 67th Street, New York

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technology

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Nowadays technology surrounds us everywhere and anytime. It has become our essential mean of communication and observation, our ground for work and spare time realization. Technology can be already called a sense per se and has actually evolved to a “sixth sense” interface. “The sixth sense” is a mini projector that has to be paired with a camera and/or a personal cell phone. It recognizes objects around an individual, gives relevant information in order to help in making decisions. It can also provide information by person’s own request: “Need to make a call? Extend your hand on front of the projector and numbers will appear for you to click. Need to know the time? Draw a circle on your wrist and a watch will appear. Want to take a photo? Just make a square with your fingers, highlighting what you want to frame, and the system will make the photo—which you can later organize with the others using your own hands over the air.” (Maes, P., Mistry, P., 2009). “The sixth sense” is not so broad at the moment and it has a long way of development ahead. However, virtual reality and all the devices that we have by now are able to trigger the same level of emotions and arousal as our natural senses, and truly make up a human sixth sense.

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Recent technological developments start to blur lines between retail atmospherics and digital environment through such devices as interactive screens, augmented reality, smartphone applications and many more (Krafft, M., Mantrala, K. M., 2010; Shankar et al., 2011; Maes, P., Mistry, P., 2009). Few retailers have already adopted advanced technologies and installed smart mirrors and interactive displays in their stores. Bodhani (2012) confirmed that physical stores will become the future place for the brand associates and consumers to interact and perform purchases via new technologies. Apart from being incredibly helpful, innovative devices add an attractive and aesthetical appeal (Pantano, E., Di Pietro, L., 2012). Multiple authors have stated that complex technologies also create more enjoyment and facilitate positive attitudes towards the brand (Kim, J. et. al., 2007; Wang, E. S. - T., Chen, L. S. - L., 2012). Dior flagship store in Milan adopted technology as a part of its particular design, a modern interpretation of a neoclassical style. The wall by the side of the stairs, is entirely composed of French-style windows imitation with a screen behind. This screen displays several themes related to the brand and its values. One is a virtual view from above on Paris, obviously with an Eiffel Tower captured in frame. Another display is permanent image of a beautiful still life, where from time to time models, cut out of its latest fashion show, walk in and out. It creates quite a surrealist version of a catwalk display that perfectly fits in a beautiful adornment of the store. This screen is definitely not as advanced as interactive mirrors, but it triggers positive emotions and can be called an element of store atmospherics. Technology adds a value that is quite difficult to obtain in the nowadays crowded market: surprise. It is able to change shoppersâ&#x20AC;&#x2122; behaviour and expectations (Bodhani, 2012). Holbrook and Hirschman (1982) as well as MacInnis and Price (1987) stated that consumers quite often search for fun and pleasure in shopping, rather than aim to achieve a final result. They enjoy the process, no matter whether they find what they are looking for or not. This is especially relevant for luxury retail, where a large part of customers do not have a specific objective when shopping. Additionally, technology in stores, if adopted in a right way, can provide useful information about clients using it and help in the CRM development of a brand (Pantano, E., 2010). Depending on the type of devices CRM team can get diverse information, from clientsâ&#x20AC;&#x2122; preferences to hints about why some SKUs are slow-sellers and others are sold out. Technology in-store is evolving and many authors already consider it as a part of atmospherics (Poncin, I., Ben Mimoun, M. S., 2014). Its usage can have a positive impact on the store and brand image, as well as increase customersâ&#x20AC;&#x2122; enjoyment and their loyalty, further purchase intentions and recommendation probability (Poncin, I., Ben Mimoun, M. S., 2014; Magni M. et al., 2010; Kim J., et al., 2007; Bernardo M. et al., 2012).

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Dior store in Via Montenapoleone, Milan

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implementation Obstacles

There can be certain obstacles in achieving a desired effect on store visitors with atmospherics. Some clients have a high self-regulation capacity and if they have a defined task when shopping, atmospherics will most probably have no influence on them. Time pressure and situation variables can also diminish desired effects. Age groups, social levels and nationalities can produce different responses to the store environment. Rodrigues, Hulten and Brito (2011) suggest that each person has a subjective experience, which is called â&#x20AC;&#x153;experience logicâ&#x20AC;?. This term means that logic is individual-based and depends on the way senses perceive and the brain interprets the environmental elements of a store (depending on age, nationality, education, gender, etc.). Clients have to be a constant point of reference for store managers, also in the selection of atmospherics. They to be implemented with high attention and precise evaluation. Store ambience does not have to damage the brand and merchandise perceptions, or to somehow interfere in decision processes of the customers. Pretests of sensorial elements can help to avoid mistakes and better understand consumersâ&#x20AC;&#x2122; attitudes. Kotler (1973) noticed that atmospherics are not lasting and have a maximum duration of life as the one of a store concept, approximately 8 years. Planning and mantainance of the store ambience and atmospherics should be a responsibility of a dedicated person or a team of specialists regulating the whole network of stores.

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conclusion

There is a famous statistical statement provided by Lee Resource Inc., that should be a ground for all CRM moves and customer-centered strategies:

“Attracting new customers will cost your company 5 times more than keeping an existing customer” Nowadays the competitive scale, where “substitutions” from the Porter’s analysis can be found just around the corner, obliges brands to find new ways of selling their goods. Managers can benefit if they set up innovative differentiating strategies. By looking at our most natural thing, human senses, brands can set up superior in-store experiences. According to researchers, we have started an era of experiential marketing and economics, where products do not stand for their physical appearance and use any longer, but for an experience behind them and for what feels and looks like to wear or utilize them (Pine, B. J., Gilmore, J. H., 1998; Schmitt, B. H., 1999). Products conduct memorable personal feelings that involve many sensations. These exact sensations are created inside the store, with a support of atmospherics. Atmospherics help in influencing in a certain way perceptions and behaviours of store visitors. Significant changes are coming on the global scale and the future of retail is brought into question (PwC Digital Services. The future of retail isn’t what you think). Atmospherics are an effective competitive weapon for brick-and-mortar stores that are starting to face a growing power of e-commerce retailers. Sensory marketing attracts shoppers, motivates them and allows their rational thinking to be overtaken by impressions (Chebat, J.- C., Michon, R., 2003). It helps in establishing a long-lasting brand recognition and strengthens relationships with its clients. Those who were able to realise importance of these retail evolution will differentiate and survive on a tuff competitive scale.

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