Publication Type

Journal Article

Version

acceptedVersion

Publication Date

11-2009

Abstract

The present study investigates the effects of two atmospheric differentiation strategies currently used by banks: co-locating with a hedonic business vs. refurbishing through an upscale environment. We assessed the potential moderating effects of congruency between the retail environment and the type of services. Using a Structural Equation Model based on 300 bank visit intercepts, we found significant differences between modern branch concepts and the traditional one in their influence on customers’ retail experience. More specifically, the type of atmospheric strategy moderates the relationship between retail environment and customers’ affect and the relationship between affect and approach behavior. Also, the mediating role of the employees and financial services evaluation varies depending on the branch environment. We conclude that a modern, mildly arousing and pleasure-oriented retail environment is the most suited at maximizing customers approach behavior. Adverse effects from a highly-arousing environment are discussed in the light of the financial services context. Theoretical and managerial implications along with avenues for future research are proposed.

Keywords

Atmospheric cues, Bank branch, Behavior, Differentiation strategy, Environmental congruency, Financial services, Perception, Pleasure Arousal (PAD), Retailing environment, Structural equation modeling

Discipline

Marketing

Research Areas

Marketing

Publication

Journal of Retailing and Consumer Services

Volume

16

Issue

6

First Page

442

Last Page

450

ISSN

0969-6989

Identifier

10.1016/j.jretconser.2009.06.007

Publisher

Elsevier

Additional URL

https://doi.org/10.1016/j.jretconser.2009.06.007

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