Applying the Functional Theory of Attitudes to Understanding the Influence of Store Atmosphere on Store Inferences

JOURNAL OF CONSUMER PSYCHOLOGY, 7(4), 345-369 Copyright O 1998, Lawrence Erlbaum Associates, Inc.

Applying the Functional Theory of Attitudes to Understanding the Influence of Store Atmosphere on Store Inferences Ann E. Schlosser Owen Graduate School of Management Vanderbilt University

Past research suggests that store atmosphere affects merchandise quality inferences, in turn affecting store image. Yet, lighting, music, and other atmospheric features also serve a social identity function (i.e., a social role). According to the functional theory of attitudes, appeals are most persuasive when they address the motives underlying the attitude targeted for change. If store atmosphere acts as a social identity appeal, then an aesthetically pleasing atmosphere should positively influence quality perceptions of social identity products (i.e., socially communicative products) but not utilitarian products (i.e., intrinsically rewarding products). To test this, two experiments were conducted that differed in the type of social and utilitarian products under evaluation and the degree of store information provided. The results of both studies indicated that store atmosphere influenced perceptions of social identity products but had little effect on perceptions of utilitarian products. Furthermore, store atmosphere elicited different shopping motives and purchasing intentions. In addition to contributing to the understanding of how store atmosphere affects store inferences, this article extends previous research and theory on attitude functions by suggesting that situations can elicit motives as well as serve as subtle, product-nonspecific appeals, selectively affecting judgments of products that are consistent (rather than inconsistent) with the situational appeal's function. Often a consumer's first impression of a store is based on what can be seen o r heard from outside the store: the displays, the lighting, the music, the color scheme, and the arrangement of space. From this information, consumers may make a number of inferences about the store that in turn may determine their store patronage Requests for reprints should be sent to Ann E. Schlosser, Owen Graduate School of Management, Vanderbilt University, 401 21st Avenue South, Nashville, TN 37203.

behavior. In the past, retailers ignored the importance of the aesthetic shopping experience, preferring instead to lure consumers into the store by announcing sales incentives (Kotler, 1973; Saffer, 1996). However, in the face of an increasingly competitive market, a sole reliance on such promotional techniques is inadequate. Retailers' efforts must turn from offering just price promotions to creating a pleasant shopping experience (Baker, Crewel, & Parasuraman, 1994; Glen, 1996; Korgaonkar, Lund, & Price, 1985; Saffer, 1996; Tauber, 1972). Hence, devoting one's efforts to improving store atmosphere and increasing store image has become a necessity rather than an option for retailers (Saffer, 1996). Thes: atmospheric recommendations have assumed that creating an aesthetically pleasing atmosphere would improve perceptions of all store merchandise and features, essentially having a halolike effect (Cooper, 1981). Yet, there are theoretical reasons to expect that improving store atmosphere may only improve inferences about store features serving a similar purpose to that of atmospherenamely, a social image purpose. Thus, the function of the store feature targeted for improvement could be an important criterion in determining whether to improve store atmosphere. According to the functional theory of attitudes, the motives underlying one's attitudes must be identified to predict attitude change (Katz, 1960; Smith, Bruner, & White, 1956). In the 1980s, functional theorists proposed that attitude objects themselves (e.g., products) activate certain motivational concerns, or functions, across individuals(cf. Anderson & Kristiansen, 1990;Shavitt, 1989,1990). Among the identified functions are the utilitarian function and the social identity function (Katz, 1960; Shavitt, 1990; Smith et al., 1956). Objects engaging the utilitarian function elicit concerns regarding the intrinsic rewards or punishments delivered by the object, whereas objects engaging the social identity function elicit concerns regarding self-other relationships and the expression of the self-concept (Shavitt, 1990). Products may serve a single, primary function or multiple functions (Shavitt, 1989, 1990). For instance, aspirin may be categorized as a utilitarian product because the purchase of it is governed primarily by pain-alleviation concerns rather than public or private identity concerns. Similarly, a greeting card may be categorized as a social identity product because it communicates something about the sender to the receiver. An automobile, however, is a multiple-functioned product because it can elicit both social identity concerns (e.g., its implied social status) as well as performance concerns (e.g., its safety features). Because different products can evoke different motivational concerns, persuasive appeals are not universally effective. The motivational relevancy of the appeal to the product matters. Appeals that directly address the function served by the object are more persuasive than those addressing irrelevant functions (Shavitt, 1989; Snyder & DeBono, 1985,1987). For instance, appeals addressing such social identity concerns as product image are more persuasive for social identity than

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utilitarian products (Shavitt, 1990). Likewise, appeals addressing such utilitarian concerns as product performance are more persuasive for utilitarian than social identity products. Later functional theorists also proposed that the situation in which an attitude object is encountered could influence how the object is perceived functionally (Herek, 1986; Shavitt, 1989). For instance, viewing an automobile in a prestigious showroom might elicit more social identity thoughts such as status and style, whereas viewing that same automobile in a manufacturing plant might elicit more utilitarian thoughts such as safety and performance. Indeed, research using priming manipulations has supported this notion (see Shavitt, 1989, for a review). Yet, situations may do more than merely elicit functionally congruent thoughts and motives: Situations may serve as subtle product-nonspecific appeals. As such, the situational appeal should selectivelyaffectjudgments of products serving afunction relevant (rather than irrelevant) to the appeal. A store's atmosphere can be considered a social identity appeal for consumers' patronage. Dim lights and classical music or harsh lights and Top-40 music convey a social image of the store rather than some practical, utilitarian purpose (e.g., displaying more merchandise). Indeed, there is research suggesting that decor can and does serve a socially communicative function. In the literature on interior home design, there is evidence that home decor expresses such social information as social status (Lauman &House, 1973), ethnic identity (Jin, 1990; Joy & Dholakia, 1991; Lauman & House, 1973), and self-concept (Sadalla, Veshure, & Burroughs, 1987). Similarly, it has been argued that stores have "personalities" (Martineau, 1958) or social images (Greenberg, Sherman, & Shiffman, 1983; Rich & Portis, 1964) and that such social identity information about a store can be communicated to consumers through the store's decor (Greenberg et al., 1983; Kotler, 1973). For instance, atmosphere can communicate the type of clientele who patronize the store and own the store's merchandise (Kotler, 1973)just as an image advertisement can convey the type of person who owns the advertised product brand. Although a store's atmosphere is less direct and less product specific than an advertisement in communicating product information, atmosphere can still silently communicate such social product information as its social class qualities (Kotler, 1973). As noted, appeals are more persuasive when they address a product's function rather than an irrelevant function. If atmosphere communicates social identity information, then it should impact judgments of merchandise serving a social identity function. Because atmosphere provides little utilitarian product information, it should have little influence on judgments of merchandise serving a utilitarian function. For instance, quality judgments of an automobile in a prestigiously decorated showroom would likely be higher than if it was encountered in a discount car lot. Yet, the elegance of the salesroom would likely have little influence on quality perceptions of car batteries, tires, or other utilitarian products.

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HI: Store atmosphere and product type should interact to influence product quality perceptions. That is, quality perceptions of the social identity merchandise should be higher when the store's atmosphere conveys prestige versus discount. Quality perceptions of the utilitarian merchandise, however, should be unaffected by the store's atmosphere. There is partial support for H1 from research that directly manipulates store atmosphere to examine its effects on merchandise quality perceptions. This research has indicated that prestigious environments (e.g., those with dim lighting and classical music) lead to higher merchandise quality inferences than discount environments (e.g., those with fluorescent lighting and popular music; Baker et al., 1994; Gardner & Siomkos, 1985). However, this research has examined only products previously identified as social identity products (perfume, gift items such as greeting cards; Shavitt, 1990; Shavitt, Lowrey, & Han, 1992). Indeed, Baker et al. (1994) cautioned against the generalizability of these findings across product categories other than gift items. Such a warning seems warranted, especially because product type appears to play an important role in store patronage decisions (Prasad, 1975; Rich, 1963) as well as store image perceptions (Greenberg et al., 1983; Peterson & Kerin, 1983). Hence, whether store atmosphere would affect quality perceptions of social rather than utilitarian merchandise remains untested. In addition to examining the interactive effects of store atmosphere and product type on merchandise quality perceptions, this article also examines the effect of product type on the relation between store atmosphere and inferences about the store's image. Store image has been broadly defined as a consumer's impression of a store that is based on responses to the store's features (cf. Dichter, 1985; Hildebrandt, 1988; Martineau, 1958; Mazursky & Jacoby, 1986; Oxenfeldt, 1974; Saffer, 1996). These responses may be cognitive, emotional, or both (Darden & Babin, 1994; Donovan & Rossiter, 1982; Martineau, 1958; Oxenfeldt, 1974) and are interrelated with such tangible store characteristics as its merchandise quality and its personnel (Darden & Babin, 1994). This article focuses on one component of global store image: social image (or what Greenberg et al., 1983 called "perceived fashion image"). A store's social image is its style or appearance rather than its practicality. It represents the value of the store's name in consumers' decision to patronize and purchase products from the store (Greenberg et al., 1983). Baker et al. (1994) demonstrated that a prestigious atmosphere leads to more favorable social impressions of the store (store pleasantness, attractiveness, and cleanliness) than a discount atmosphere does. They also proposed that both merchandise and service perceptions mediate the relation between store atmosphere and the store's social image. Yet, according to the matching hypothesis of the functional theory of attitudes, factors that match rather than mismatch the attitude object's function should be most influential (Katz, 1960; Smith et al., 1956). By being a social component of store image, the store's social image should be related

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to social rather than utilitarian store features (i.e., store features that match rather than mismatch the function of the store's social image). Indeed, past research has demonstrated the importance of product type in affecting whether social image distinctions are made between different store types (Greenberg et al., 1983); when the products evaluated served some social purpose (e.g., handbags), the inferred social image of the store was highest among department stores and lowest among discount stores. For mostly practical, or utilitarian, products such as lamps, there was little differentiation between the perceived social image of stores. If store atmosphere influences quality perceptions of the social identity merchandise (as suggested in HI), and if perceptions of the social identity products influence a store's perceived social image (as Greenberg et al.'s, 1983, results would imply), then quality perceptions of the social identity (and not utilitarian) products may mediate the relation between store atmosphere and perceived image (see Figure 1). This logic leads to the following two hypotheses: H2: The perceived social image of a store will be more favorable when the store has a prestigious rather than discount atmosphere. H3: The relation between store atmosphere and the store's social image will be mediated by quality perceptions of the social identity rather than utilitarian merchandise. It is therefore suggested that a store's atmosphere will influence perceptions of functionally congruent (social identity) store features, without influencing perceptions of functionally incongruent (utilitarian) store features. As a result, store atmosphere should influenceperceptions of the social identity merchandise and the store's social image without influencing perceptions of the utilitarian merchandise. Furthermore, perceptions of the utilitarian merchandise should not mediate the relation between atmosphere and perceptions of the store's social identity features.

Quality assumptions of thc social identity products

Quality assumptions of the utilitarian products

FIGURE 1 Effects of store atmosphere on store inferences. The dotted line indicates a nonsignificant path.

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EXPERIMENT 1 test this, store atmosphere was manipulated as a between-subjects variable (prestigious vs. discount). To examine whether store atmosphere selectively influences perceptions of social identity products while having little impact on percep tions of utilitarian products, product type was treated as a within-subject variable.

TO

Method Participants. Eighty-eight undergraduate students at the University of Illinois participated in partial fulfillment of an introductory psychology course requirement. Participants were randomly assigned to receive a description of either a prestige (n = 43) or a discount (n = 45) store environment. Materials. Participants were instructed that they would receive an excerpt from a review of a new store. The review differed only in its description of store atmosphere. For those in the prestige condition, the store was described as having "soft lighting, classical music, hardwood floors, and wide aisles." Those in the discount condition were told that the store had "fluorescent lighting, Top40 music, linoleum floors, and narrow aisles." Past research has indicated that these features elicit prestige versus discount store perceptions (cf. Baker et al., 1994). The remainder of both reviews contained the following information:

Brinn's carries a variety of items, whether you're shopping for gifts or for everyday items. It also offers a Brinn's credit card. Once approved, you'll receive 10% off a Brinn's card purchase. Brinn's also contributes 5% of its profits to the community in which it does business. Design and procedure. After reading the store description, participants completed a questionnaire nearly identical to that constructed and used by Baker et al. (1994). The sole difference was that, instead of rating the quality and workmanship of only one product, participants in this study rated the quality and workmanship of three social identity products (wedding toasting goblets, perfume or cologne, jewelry) and three utilitarian products (vacuum cleaner, can opener, toothbrush). A pretest confirmed these product classifications: Products were evaluated more by their social identity characteristicswhen they were social identity rather than utilitarian products.' '1n a pilot study, 9 participants were asked to indicate the degree to which their opinions about different products were based on (a) the product's performance and features (i.e., its utilitarian characteristics)and (b) how the product reflects on them and says something about them to others (i.e., its social identity characteristics). Participants answered these two questions for each of the products in

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The questions regarding merchandise quality and the store's social image were identical to those developed and used by Baker et al. (1994). In addition to these questions, participants were asked how much they agreed with the following two statements: "I would buy most items for special occasions from this store (e.g., graduation,wedding items)," and "I would buy most everyday items from this store (e.g., household cleaning materials, dental items)." These two items were added to examine how atmosphere might influence purchase intentions. It is anticipated that buying items for special occasions is driven by social identity motives, whereas buying items for everyday use is driven by utilitarian motives. All of the items were rated on a 7-point scale ranging from 7 (greater agreement and more favorable impressions) to I (greater disagreement and lessfavorable impressions).

Results

Merchandise perceptions. Similar to the findings of Baker et al. (1994), the quality and workmanship ratings for each product were highly intercorrelated (.78 I r I .89); hence, the quality and workmanship judgments were averaged into a single evaluative rating. In addition, because the evaluations within product type were highly positively correlated with each other (.40 I r I .8 I), and the evaluations between product types were either mildly correlated or negatively correlated (-.43 I r I.29), the evaluations of the social identity products were averaged into a single evaluative rating, and the evaluations of the utilitarian products were averaged into a single evaluative rating. These product evaluations were analyzed with a 2 (store atmosphere: discount vs. prestigious) x 2 (product type: social identity vs. utilitarian) analysis of variance (ANOVA), with the first factor being between-subjects and the last factor being this study in addition to 10 other products, using a 9-point scale ranging from I (not at ail) to 9 (very much). The results indicated that, for vacuum cleaners, can openers, and toothbrushes, participants indicated that their opinions were based more on the utilitarian characteristics than the social identity characteristics (all ts > 4 , p c ,005). Yet, for wedding toasting goblets, perfume, and jewelry, there were no significant differences between the two types of characteristics (all ts c 1.3,nr), suggesting that these objects may be multiple-functioned objects. However, it is also possible that participants may have interpreted "how well it performs" for the social identity products to mean how well they perform in giving the right impression to others (i.e., a social identity interpretation). Thus, it may be more useful to concentrate primarily on the question regarding how well the product reflects on them, as this item is unlikely to be interpreted in both a social identity and a utilitarian manner. In regards to this second question, the three social identity products were judged more by their social identity characteristics (all Ms t 4.88) than the three utilitarian objects were (all Ms I 1.78, all ts t 2.85, p c .05). Hence, the social identity characteristics of a product figure more prominently in people's opinions of wedding toasting goblets, perfume, and jewelry than vacuum cleaners, can openers, and toothbrushes. In fact, it appears that the social identity characteristics do not influence participants' opinions of the utilitarian products used in the first experiment.

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within-subject. Although a main effect of store atmosphere was significant, F(1, 86) = 21.35, p < .0001, this was qualified by a Store Atmosphere x Product Type interaction, F(l, 86) = 9.95, p < .005. That is, as predicted in Hypothesis 1, social identity products were evaluated more favorably when the atmosphere was described as prestigious (M = 5.07) rather than discount (M = 3.36), F(1,86) = 23.63, p < .000 1, see Figure 2. Also as expected, participants in the prestige versus discount conditions did not differ in their evaluations of the utilitarian products (M = 4.31 and M = 4.25, respectively), F(1, 86) = .04, ns. This confirms the first hypothesis that store atmosphere influences perceptions of the social identity products but has little impact on perceptions of the utilitarian products. This suggests that store atmosphere acted as a social identity product appeal, thereby influencing perceptions of social identity products alone. Because store atmosphere does not address utilitarian product concerns, it had little impact on quality perceptions of utilitarian products. There were no other significant main effects or interactions. Testing mediation between store atmosphere and image. To qualify for mediation (Baron & Kenny, 1986), the independent variable (IV, or store atmosphere here) must significantly affect both the mediating variable (MV, or merchandise quality perceptions) and the dependent variable (DV, or the store's social image). If the proposed MV does account for the relation between the IV and the DV, then the relation between the IV and DV should become nonsignificant

Social Identity

Utilitarian Rcduct Type

FIGURE 2 Interactive effect of atmosphere and product type on product quality perceptions Those cell means with different subscripts are significantly different at p < .05, two-tailed.

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when the MV is treated as a covariate. Furthermore, the covariate (or MV) should be significant in this analysis of covariance (ANCOVA). Confirming Hypotheses 2, participants in the prestige condition perceived the store to have a more favorable social image than did those in the discount condition (Ms = 5.86 vs. 4.73), F(l,86) = 1 6 . 0 2 ,< ~ .0001. However, when the evaluations of the social identity and utilitarian merchandise were entered as covariates, the relation between store atmosphere and image became nonsignificant (see Table 1). In fact, in this ANCOVA, only the evaluation of the social identity merchandise was significant.This confirms Hypothesis 3 that the evaluation of the social identity (not utilitarian) merchandise acts as a mediator between store atmosphereand the store's social image.2 Purchase intentions. Purchase intentions were analyzed with a 2 (store atmosphere:discount vs. prestigious) x 2 (occasion: special vs. everyday) ANOVA, with the first factor being between-subjects and the last factor being within-subject. A Store Atmosphere x Occasion interaction was significant, F(1, 86) = 21.29, p < .0001 (see Figure 3). That is, the intention to buy items for special occasions was greater for those in the prestige than discount condition, whereas the intention to TABLE 1 Experiment 1 : Quality Perceptions of Each Product Type in Relation to Store Atmosphere and Store Image ANOVA Dependent Variable

Image

Variate

Atmosphere (IV)

ANCOVA

F(1, 86)

Variate

Ff1.84)

16.02*

Atmosphere (IV) Social identity (CV) Utilitarian (CV)

2.27 27.56* .M)

Note. ANOVA = analysis of variance; ANCOVA = analysis of covariance; IV = independent variable; CV = covariate; social identity = evaluations of social identity products; utilitarian = evaluations of utilitarian products. *p 5.05.

'one might argue that store atmosphere, by influencing the store's social image, affects quality perceptions of the social identity merchandise. To test this, store image was treated as the covariate, quality perceptions of the social identity merchandise was treated as the DV, and store atmosphere was treated as the IV in an ANCOVA. Store image was significantly related to quality perceptions of the social identity merchandise, F(1, 85) = 30.71, p < ,0001. Yet, inconsistent with mediation, store atmosphere continued to significantly affect quality perceptions of the social identity merchandise, F(1, 85) = 8.89, p < ,005. Thus, it does not appear that store image mediated the relation between store atmosphere and . perceptions of the social identity merchandise. . However, what is more important than the specific causal ordering of the variables is the finding that the store's social features are influenced by and influence other features of the store that serve a similar social function.

Discount (N = 45) Prestige (N = 43)

Spsial Occasions

Everyday

Product Purpose

FIGURE 3 Interactive effect of atmosphere and product occasion on likelihood of buying. Those cell means with different subscripts are significantly different atp < .05, two-tailed.

buy everyday items from the store was greater for those in the discount than prestige ~ .0001, and F(l, 86) = 7 . 5 2 , ~< .01, respectively. condition, F(1, 86) = 1 5 . 8 1 , < Results from regression analyses suggest that quality perceptions of the merchandise (social identity or utilitarian) were strongly related to decisions to patronize the store with the intention of buying similar types of items (for special occasions or for everyday use, respectively; see Table 2). Because perceived quality of social identity products rather than store atmosphere remained significant when both variables were entered into the regression equation, quality perceptions of the social identity merchandise appear to mediate the relation between store atmosphere and intentions to purchase most social items at the store. For everyday items, however, quality perceptions of utilitarian merchandise and store atmosphere significantly contributed to patronage intentions, suggesting that quality perceptions did not mediate the relation between store atmosphere and intentions to purchase most everyday items at the store. It appears that other factors elicited by store atmosphere affected purchase intentions for everyday items.

Conclusions The results support the hypothesis that store atmosphere communicates social identity rather than utilitarian product information, thereby influencing quality perceptions of the social identity rather than utilitarian merchandise. Furthermore,

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TABLE 2 Experiment 1: /? for Each Store Variable on Intentions to Frequent Store to Buy Social Identity or Utilitarian Merchandise Social Identity Merchandise (Itemsfor Special Occasions)

RZfor store atmosphere RZfor perceived quality R2with both variables in model

Utilitarian Merchandise (Everyday Items)

.16 .46* .47

Note. For the social identity merchandise, perceived quality refers to quality perceptions of the social identity products. Likewise, for the utilitarian merchandise, perceived quality refers to quality perceptions of the utilitarian products. * p < .05 when both store atmosphere and perceived quality variables were in the regression equation.

quality perceptions of the social identity rather than utilitarian merchandise mediated the relation between store atmosphere and store image. This qualifies previous findings relating store atmosphere to store image via merchandise perceptions (Baker et al., 1994)by demonstrating that merchandise type matters. Consequently, creating a more prestigious atmosphere is unlikely to change perceptions of all store merchandise (i.e., utilitarian merchandise) and thus, a store's social image. One might argue that the social identity and utilitarian products used in this first experiment also differed in the degree to which they varied in price and quality. For instance, there may be greater price and quality variability in jewelry and perfume than in can openers and toothbrushes. The product type results could therefore be attributed to greater variance in quality for the social identity than utilitarian products. To test this, the degree to which the social identity and utilitarian products differed in price and quality variability was manipulated in the second experiment. Furthermore, by using a within-subject design, the first experiment demonstrated that store atmosphere selectively affected quality perceptions of social identity and not utilitarian merchandise. Thus, inconsistent with a halo-type effect, a pleasant environment (prestige) did not lead to favorable evaluations of all of the products--only the social identity products. There is the possibility, however, that this within-subject design led participants to compare and contrast the two types of products or alerted them to the product type manipulation. As a result, those in the prestige condition may have believed that they were expected to rate the social identity products higher in quality than the utilitarian products, whereas those in the discount condition may have believed the opposite.3 The second experiment was designed to address such alternative explanations.

here has been little empirical support, however, for the effect of such demand characterisitcs on research results (i.e., that participants attempt to discern the hypothesis and then confirm it; see Berkowitz & Donnerstein, 1982, for a more detailed explanation). Perhaps instead, participants used

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In addition to influencing store image, the quality perceptions of the social identity merchandise had implications for store patronage intentions. Quality perceptions of social identity merchandise mediated the relation between store atmosphere and intentions to frequent the store when purchasing social items (i.e., items for special occasions). Quality perceptions of the utilitarian merchandise were also related to the intention to frequent the store when purchasing utilitarian items (i.e., everyday items). Yet, store atmosphere contributed to this store patronage decision as well. One might argue that store atmosphereaffected this decision because it affected price perceptions. People may assume that stores with discount images have lower prices than stores with prestigious images. When purchasing everyday items, therefore, consumers might frequent discount-image stores because of perceived savings. To test this in the second experiment, participants were asked for their price and quality perceptions of a set of social identity and utilitarian products.

EXPERIMENT 2 The second experiment aimed to address a number of questions arising from the first, namely: (a) whether store atmosphere affects quality perceptions of social identity and not utilitarian merchandise due to differences in product function rather than variability in quality or price; (b) whether evaluating the different product types simultaneously versus separately might account for the results; and (c) whether store atmosphere affects price perceptions, thereby influencing intentions to patronize a store with the intentions of buying utilitarian items. It is also possible that store atmosphere may elicit functionally related beliefs and motives in addition to serving as a product appeal. Indeed, past theorizing has speculated that situations can make certain motives more or less salient (Shavitt, 1989). For instance, the prestige atmosphere, by eliciting social identity motives, may induce more social shopping behaviors and beliefs (e.g., this would be a good place to shop with friends) than a discount atmosphere would. The discount store, by eliciting utilitarian motives, may induce more practical beliefs and motives (e.g., this store would be aconvenient place to shop) than aprestigious atmospherewould. The second experiment addressed this hypothesis as well. Method Participants. Seventy undergraduate students at the University of Illinois participated in partial fulfillment of an introductory psychology or business course product type to assist them in making quality distinctions between the products, resulting in more or less favorable impressions of the social identity products compared to the utilitarian products. If so, then those evaluating both product types at the same time should distinguish more between their quality judgments of each product type than would those who judge a single product type.

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requirement. Participants were randomly assigned to receive a description of either a prestige or a discount store environment and to evaluate the merchandise within each product type either separately or together (n = 11-12 per condition).

Materials. The store reviews were identical to those used in Experiment 1 except for the inclusion of (a) a visual of the store's interior and (b) more detailed information regarding the products and brands carried at Brinn's. The 2" x 2" visual accompanying the review supported the atmospheric description (i.e., soft lighting and wide aisles in the prestige condition, harsh lighting and narrow aisles in the discount condition). To avoid confounding atmosphere with the type of merchandise appearing in the visual, neither visual displayed merchandise clearly. Yet, the store review provided more product information than the review in the first experiment did: It stated that "Brinn's carries a variety of items, from gift items and apparel to home furnishings and appliances, including name brands and Brinn's own line of Brinn's merchandise." Design and procedure. The design was a 2 (atmosphere: prestige vs. discount) x 3 (order: social identity, utilitarian, or both product types evaluated immediately after the store review was read) x 2 (product variability in quality, a within-subjectfactor: high vs. low) x 2 (product type, a within-subjectfactor: social identity vs. utilitarian) factorial design. Immediately after reading the prestige or discount store description, participants rated the quality and workrnanship of either the social identity, utilitarian, or both types of products. Each list contained products varying in quality across stores and manufacturers.Based on the results of apretest, the social identity products with high variability in quality were perfume or cologne and flower arrangements, whereas the social identity products with little variability in quality were greeting cards and wedding goblets. The utilitarian products with high variability in quality were microwave ovens and bed mattresses, whereas the utilitarian products with little variability in quality were blenders and vacuum cleaners.4

4 ~ s i n ga scale from 0 (not at all) to 9 (a great deal), 10 undergraduate students indicated their perceptions of the price and quality variability of 14 products and the degree to which their judgments of each product were based on the product's utilitarian and social identity features. To avoid the potential ambiguity of the utilitarian item used previously (see footnote I), examples of performance (i.e., durability and reliability) were included. Supporting the functional categorization of products, the utilitarian products used in this experiment were evaluated more on the basis of their utilitarian than social identity characteristics (Ms = 6.45 vs. 3.30), t(8) = 4.48, p < .01, whereas the social identity products were evaluated more on the basis of their social identity than utilitarian characteristics (Ms = 6.48 vs. 4.35). t(8) = 2 . 2 9 , < ~ .05. Similarly, the products identified in this experiment as varying highly in product quality were rated as varying more in quality across stores and manufacturers than those products identified as varying little in quality (Ms = 5.68 vs. 4.70), t(8) = 2.50, p < .05. In addition,

After evaluatingthis initial set of products, participantscompleted the same store image questions as used in the first experiment. The purchase questions were expanded to include products similar to those judged for quality and workmanship (i.e., "I would buy most gift items and items for special occasions" and "I would buy household appliancesand most everyday items"). To assess the motives elicited by the different atmospheres, participants also completed a measure assessing the functions elicited by the store review (see the first column of the Appendix for the predicted utilitarian, social identity, and knowledge items, some of which were adapted from a scale developed by Korgaonkar et al., 1985). To tap price perceptions, participants were asked to estimate the cost of each product as well as whether they considered this to reflect above, below, or average prices. On completion, those who evaluated the product types separately now indicated their quality and price perceptions of products in the functional category different from the first set (i.e., those who evaluated only utilitarian products first now evaluated the social identity products and vice versa). Note that up until this point, these participants were not aware that they would be rating a second set of products after rating the first. Hence, for the first set of products, participants in these conditions were unaware of the experimental manipulation of product type (unlike those who rated both product types simultaneously as those in Experiment 1 did). Results Merchandise perceptions. As in Experiment 1, quality and workmanship perceptions were averaged into an overall quality variable (all rs > 20). Furthermore, the ratings of products within the same quality-variability and functional category according to the pretest (e.g., social identity products varying highly in quality) were combined. Quality perceptions were then analyzed with a 2 (atmosphere: prestige vs. discount) x 3 (order: social identity, utilitarian, or both product types evaluated first) x 2 (product variability in quality, a within-subject factor: high vs. low) x 2 (producttype, a within-subjectfactor: social identity vs. utilitarian) repeated measures AN OVA.^ The results yielded a significant atmosphere effect, products were selected such that the quality variability of social identity and utilitarian products were similar (Ms = 5.90 and 5.45, respectively, for products varying highly in quality), t(8) = .48, m, and (Ms = 4.85 and 4.55, respectively, for products varying little inquality), t(8) = 1.26,ns. Perceptions of quality and price variability were highly correlated (r = .74), making it difficult to identify products that varied greatly on one but not the other. Because product quality and workmanship perceptions were being directly assessed in the second experiment, product variability in quality rather than price was manipulated. he data of I I participants were deemed questionable (they failed to complete the questionnaire or did not follow directions) and were thus deleted from these and the remaining analyses. The participants were not specific to condition (n = 1 4 per condition).

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F(l, 53) = 21.22, p < .0001, and a product type effect, F(1, 53) = 12.39, p < .001, both of which were qualified by an Atmosphere x Product Type interaction, F(l, 53) = 10.55,p < .01. Replicating the results of the first experiment and supporting HI, those in the prestige condition perceived the social identity products to be higher in quality than those in the discount condition did (Ms = 5.17 vs. 3.64), F(1,53) = 33.10, p < .0001. Moreover, as before, participants in the prestige and discount conditions did not significantly differ in their quality perceptions of the utilitarian products (Ms = 5.23 vs. 4.79), F(1,53) = 2.43, ns. This pattern held regardless of product variability in quality: The Atmosphere x Product Variability x Product Type interaction was nonsignificant, F(1,53) < 1. In fact, on average, participants in the prestige condition agreed that the social identity products would be of high quality, whereas those in the discount condition disagreed (see Figure 4 where a value of 4 represents neither agreement nor disagreement). For the utilitarian products, however, those in the prestige and discount conditions slightly differed only in their level of agreement about the high quality of the products. Examination of each product separately yielded the following exception: The social identity product varying least in product quality (greeting cards) was evaluated similarly by those in the prestige and discount conditions (Ms = 4.73 vs. 4.7 I), F(1,53) < 1. This may be due to limited variability in the range of product quality values for greeting cards. Indeed, there was also little difference between the two

.4

.-6

5

neutral

2

1

High

Low

High

Low

Roduct Variability in Quality

FIGURE 4 Interactive effect of store atmosphere, product type, and product variability on product quality perceptions.

conditions in their evaluations of the utilitarian product varying least in product quality (blenders; Ms = 5.17 vs. 5.15), F(l, 53) < 1. For the social identity and utilitarian products varying most in product quality (where restriction in the range of quality values is unlikely to be a problem), there was a significant Product Type x Store interaction, F(l, 53) = 22.20, p < .Owl. Those in the prestige condition judged the social identity product varying most in quality (perfume) more favorably than did those in the discount condition (Ms = 5.45 vs. 2.95), F(l,53) = 48.66, p < .Owl. For the utilitarian product varying most in quality (microwave oven), those in the prestige and discount conditions judged it similarly (Ms = 5.23 vs. 4.81), F(l, 53) = 1.77, ns. The only significant effects with product variability from the overall 2 x 3 x 2 x 2 ANOVA included a main effect of product variability, F(1, 53) = 13.70, p < .001, qualified by a Product Variability x Atmosphere interaction, F(1,53) = 6.88, p = .01. Not surprisingly, there were greater differences between the conditions in quality perceptions of the products varying most in quality (Ms = 5.15 and 3.98 for the prestige and discount conditions, respectively), F(l, 53) = 26.25, p < .0001, than those varying less in quality (Ms = 5.05 and 4.42 for the prestige and discount conditions, respectively), F(1,53) = 7.56, p < .01. The product variability in quality also significantly interacted with order, F(2, 53) = 4.23, p < .02.~More important, order did not significantly interact with atmosphere or product type, all Fs < 1.92, ns. Hence, it appears that knowledge of the product type manipulation did not account for the results involving atmosphere.

Testing mediation between store atmosphere and image. Replicating the results of the first experiment and supporting H2, participants in the prestige condition perceived the store to have a more favorable image than those in the discount condition did (Ms = 6.43 vs. 4.85), F(l, 53) = 34.35, p < .0001. To test the effect of quality perceptions of social identity and utilitarian merchandise on the relation between store atmosphere and store image, both were entered as covariates. Replicating the results of the first experiment, perceived quality of the social identity merchandise was significantly related to store image perceptions, whereas perceived quality of the utilitarian merchandise was not (see Table 3). Unlike the previous experiment, however, the effect of atmosphere on store image remained significant, suggesting that perceptions of social identity merchandise

6 ~ h i interaction s reflects order differences for products varying less in product quality than more, F(2, 53) = 3.29, p < .05, and F(2, 53) < 1, respectively. Those who evaluated the utilitarian products first perceived the merchandise varying little in quality to be of higher quality and workmanship (M = 5.20) than those in the other conditions did (Ms = 4 . 6 0 and 4.48 for those rating the social products first or both products, respectively). Because this interaction does not affect any of the main hypotheses of this study, it is not discussed further.

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TABLE 3 Experiment 2: Quality Perceptions of Each Product Type in Relation to Store Atmosphere and Store lmage ANOVA Dependent Variable

Image

F(1. 57)

Variate

Atmosphere (IV)

-

ANCOVA

--

34.35*

F(1, 55)

Variate

40.18* 3.99* 1.23

Atmosphere (IV) Social identity (CV) Utilitarian (CV) -

-

- -

Note. ANOVA = analysis of variance; ANCOVA = analysis of covariance; IV = independent variable; CV = covariate; social identity = evaluations of social identity products; utilitarian = evaluations of utilitarian products. *p 2.05.

contributed to but did not mediate the relation between store atmosphere and store image.

Store function. To assess the motives elicited by different store atmospheres, a factor analysis was applied to the functional items listed in the Appendix. The three functions emerging after a varimax rotation were a utilitarian, a social identity, and a knowledge function (all loadings > SO). All items were grouped consistent with their proposed functional category except for two items: (a) the quality of the store's return policy loaded with the knowledge instead of the utilitarian factor and (b) the ease of finding whatever was sought loaded with the social identity rather than the utilitarian factor. Note that these two items had the lowest loadings, suggesting that they were less related to their factor than the other variables were. The ratings of the store items within each factor were averaged before a 2 (atmosphere: prestige vs. discount) x 3 (order: social identity, utilitarian, or both product types evaluated first) x 3 (function, a within-subject variable: social identity, utilitarian or knowledge) repeated measures ANOVA was applied. The results yielded a significant function main effect, F(2, 53) = 44.43, p < .0001, qualified by an Atmosphere x Function interaction, F(2, 53) = 46.67, p < .0001. This interaction indicates that the store with a prestigious image served more of a social identity and knowledge function than the store with the discount image did (Ms = 4.01 and 3.10 for the social identity function), F(l, 53) = 10.59, p < .005, and (Ms = 4.96 and 4.13 for the knowledge function), F(1, 53) = 8.27, p < .01. However, the store with a discount image served more of a utilitarian function than the store with the prestigious image did (Ms = 5.85 and 4.15, respectively), F(l, 53) = 67.87, p < .0001. This confirms the hypothesis that prestigious atmospheres elicit social identity shopping beliefs and motives (e.g., to dress up to go shopping or to go with friends), whereas discount atmospheres elicit utilitarian shopping beliefs and motives (e.g., to bargain hunt or convenience shop). Perhaps the

knowledge function was higher for the prestige than discount store because it captured elements of the social identity function (e.g., to be informed to appear fashionable). Purchase intentions. As in the previous experiment, those in the prestige condition said they would buy most gift items and items for special occasions (i.e., social identity objects) from Brinn's than did those who read the description with a discount atmosphere (Ms = 4.20 vs. 2.97), F(l, 53) = 8.94, p < .005. This would be expected given that those in the prestige condition perceived the social identity merchandise to be of higher quality than those in the discount condition did. Unlike the first experiment, however, there were no significant differences between those in the prestige and discount conditions in their intention to buy most household appliances and everyday items (i.e., utilitarian objects) at Brinn's (Ms = 5.79 vs. 4.97), F(l, 53) < 1. Recall that in the first experiment, participants were asked how much they agreed that they would buy everyday items from Brinn's. This did not include household appliances. Perhaps for the purchase of everyday items alone, a discount store is preferred. For the purchase of products involving a greater investment (i.e., household appliances), however, neither the discount nor prestige store may be clearly preferred. There are a number of possible factors that may contribute to participants' intentions to patronize a particular store with the intentions of purchasing social versus utilitarian merchandise. The factors examined here include the average perceived quality and estimated price of similar product types sold at the store. As shown in Table 4, when quality perceptions and estimated price of social identity merchandise and atmosphere were entered into the regression equation, store TABLE 4 Experiment 2: ' R for Each Store Variable on Intentions to Frequent Store to Buy Social Identity or Utilitarian Merchandise

Social Identity Merchandise (Itemsfor Special Occasions, Gifts)

2 for store atmosphere 2 for estimated price 'R for perceived quality R~ with all variables in model

Utilitarian Merchandise (Household Appliances, Everyday Items)

.14 .13 .22* .23

Note. For the social identity merchandise, perceived quality and estimated price refer to quality and price perceptions of the social identity products, respectively. Likewise, for the utilitarian merchandise, perceived quality and estimated price refer to quality and price perceptions of the utilitarian products, respectively. * p < .05 when store atmosphere, estimated price, and perceived quality variables were in the regression equation.

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atmosphere no longer significantly contributed to participants' intentions to buy social items from Brinn's. Instead, perceived quality of social identity merchandise contributed significantly to participants' intentions to buy social items from Brinn's. Replicating the results of the first experiment, this suggests that quality perceptions of social identity merchandise mediated the relation between store atmosphere and intentions to purchase social merchandise from the store. Furthermore, estimated price had little effect on intentions to buy social identity items from the store. This supports previous research that price (or economic significance) has little effect on the choice of where to buy social products (Prasad, 1975). In terms of utilitarian merchandise, neither the type of store nor quality perceptions of the utilitarian merchandise contributed to participants' intentions to buy. It is somewhat surprising that estimated price did not significantly influence intentions to buy the utilitarian merchandise from the store either.7 Perhaps the utilitarian function served by the store (e.g., likelihood of finding good bargains in addition to having many items from which to choose) affected consumers' intentions to frequent a store to buy utilitarian merchandise. Indeed, the intention to buy utilitarian items was positively correlated with the utilitarian function elicited by the store (r = .39 for the discount condition; r = .28 for the prestige condition).

DISCUSSION The influence of store atmosphere on store inferences appears to be largely conditional on the function of the store features targeted for change. Consistent with the hypothesis that situations can serve as subtle appeals and, more specifically, that store atmosphere serves as a social identity appeal, store atmosphere significantly affected quality perceptions of store features serving some social identity function. In both experiments,store atmosphere significantly influenced (a) quality perceptions of products serving a socially communicative function, (b) the store's social image, and (c) intentions to patronize the store with the intentions of purchasing items for social occasions. Recall that this atmosphere effect occurred despite the similarity between the two store descriptionsin terms of the promotional techniques employed (a credit card discount and donations to local charities). This partially confirms recent speculations that, in a competitive retail market, improving store atmosphere rather than relying entirely on promotional techniques will be necessary in attracting consumers. However, because store atmosphere provided little utilitarian product information, it had little effect on quality perceptions of the utilitarian products. Thus, store atmosphere did not influence all store features, only those that served a similar (i.e., social) function. 7 ~ u l t i p l eprice variables (including maximum estimated costs, minimum estimated costs, and perceptions of whether these prices were average, above average, or below average) were tested in the regression equation with similar results as those reported in Table 4.

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The findings also support the postulate that the social image of a store would be related to store features that serve the same function (i.e., social identity rather than utilitarian). Consistent with the proposed model, quality perceptions of social identity merchandise influenced the store's social image perceptions, whereas the evaluative perceptions of the utilitarian merchandise neither were influenced by store atmosphere nor influenced store image. This qualifies previous findings that perceptions of merchandise, regardless of product type, influence the inferences made from store atmosphere (Baker et al., 1994). The research reported here suggests instead that perceptions of a store's social image are related to quality perceptions of social identity rather than utilitarian merchandise. Quality perceptions of merchandise also have implications for store patronage intentions. In terms of purchase intentionsdriven by social motives, the results from both experiments indicate that quality perceptions of social identity merchandise mediate the relation between store atmosphere and intentions to buy most items for social events from the store. Hence, by creating high product quality perceptions, prestigious store atmospheres increased intentions to frequent the store to buy most social identity products. This was specific to the social identity merchandise, however. To increase intentions to frequent a store to buy most utilitarian items, it may be necessary to create an environment that enhances utilitarian shopping motives (e.g., convenience, likelihood of finding bargains, many products in stock). Store Atmosphere as a Subtle, Product-Nonspecific Appeal

By providing a conceptual understanding of the effects of store atmosphere on store inferences and shopping intentions, the influence of store atmosphere on consumers' perceptions of the store can be predicted and interpreted. The functional theory of attitudes provides a theoretical understanding of why product type matters when examining the effects of store atmosphere on store inferences. According to this theory, it is important to understand the function served by an attitude to predict and change that attitude (Insko, 1967). Although theory suggests that situations can elicit attitude functions, thereby varying goal salience (Shavitt, 1989), little research has been conducted to examine the effects of situational variables on product perceptions and intentions. Consistent with past theorizing, this research suggests that atmosphere (a situational element) can evoke functionally congruent beliefs and motives. Moreover, this article introduces the notion that situational elements can also serve as product appeals. Hence, to predict the effects of atmosphere on consumers' attitudes toward the merchandise sold at a store, one needs to identify the function served by the products for the majority of people. If the products serve some social identity function for most people, then a social identity appeal, such as having a more prestigious atmosphere, may improve product perceptions and increase the intentions to frequent a store when in the market to buy social identity items.

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The effect of functionally incongruent messages (especially subtle, product-nonspecific appeals) on judgments has been less clear in functional theory and research. Research on advertising messages (clear, product-specific appeals) has demonstrated that advertising appeals unrelated to the product's function lead to negative thoughts about the product (cf. Shavitt, 1990). This is likely because the advertisement, by lacking relevant information about the product's function, fails to meet consumers' expectations and needs for evaluating the product. The research reported here indicates that this effect found with print advertisements may not generalize to situational (i.e., subtle, product-nonspecific) appeals such as that conveyed by store atmosphere. In both experiments, store atmosphere acted as a social identity product appeal, affecting perceptions of social identity store features and products. Yet, store atmosphere did not lead to negative judgments of the utilitarian merchandise. In fact, it had little effect on quality perceptions of utilitarian merchandise. Perhaps this is because situational appeals are indirect appeals: Consumers may not expect situations to provide product information. Thus, in the case of situational appeals, it appears thatjudgments will not be changed if the appeal is irrelevant to the attitude object's function. This article also attests to the importance of identifying the function of the attitude targeted for change. One might believe that if one can improve perceptions of some of the products, this favorable impression would carry over to all product perceptions. Research has not examined whether an appeal that influences perceptions of functionally relevant products has a halolike effect on related products (e.g., all products made by the same manufacturer or sold at the same store). This research suggests, however, that a situational appeal can selectively influence perceptions of functionally relevant products, simultaneously having little impact on perceptions of functionally irrelevant products.

Limitations and Future Directions One might argue that these experiments lack generalizability due to their low degree of mundane realism. Yet, mundane realism itself does not buy generalizability, nor does any single study (Berkowitz & Donnerstein, 1982;Brinberg & McGrath, 1985; Carlsmith, Ellsworth, & Aronson, 1976). Every research strategy (basic or applied, experimental or field observation) brings with it advantages and disadvantages (while controlling certain threats to validity, others are risked; cf. Brinberg & McGrath, 1985; Cook & Campbell, 1979). This experiment sought to control variables (store familiarity, product and brand availability,store reputation) to make causal inferences about the manipulated variable (store atmosphere).The difficulty in controlling for such extraneous variables in the real world, creating stimuli equal in every sense but the manipulated variable, justifies the choice of using laboratory settings to test theoretical questions (Mook, 1983). Examining the generalizability

of these findings to other settings is an empirical question worthy of further study (Berkowitz & Donnerstein, 1982). Instead of seeking mundane realism, testing the robustness of findings by systematically varying experimental components (e.g., employing different computational techniques, variations in measures and manipulations) decreases uncertainty and increases generalizability (Brinberg & McGrath, 1985). The second experiment was designed to test the robustness of the first experiment's findings by making the following changes: (a) different products were evaluated in the second experiment to manipulate product variability in quality, (b) more information about the store (in the text and with a visual) was provided, and (c) the different product types were evaluated either together or separately. In spite of the changes made, many of the results of the first experiment were replicated in the second experiment: In both experiments, store atmosphere affected quality perceptions of social identity rather than utilitarian products and influenced the store's social image and intentions to buy social identity items. Moreover, several of these findings support previous research conducted with different populations, using different methods (e.g., Baker et al., 1994; Prasad, 1975). This is not to say that care should not be taken when applying these findings. It is unclear whether the results apply to stores with well-established images or how purchase satisfaction or other store feedback might affect variables in the proposed model. These results may apply best to stores that are new to an area or relatively unknown. Furthermore, whether product quality perceptions and intentions to buy most products from the store translate into actual sales likely depends on the consumers' actual store experiences (e.g., the brands and products available at the store, the actual prices). Yet, because decisions of where to buy items often precede brand choice decisions (Darden, 1979; Greenberg et al., 1983; Stone, 1954;Tauber, 1972), understanding the implications of store atmosphere on store patronage decisions (and store inferences) is an important practical and theoretical area.

ACKNOWLEDGMENTS I thank Paul Herr, Sharon Shavitt, and three anonymous reviewers for their insightful comments and suggestions on an earlier version of this article.

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Accepted by Paul Herr.

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APPENDIX TABLE A1 Factor Loadings on Elicited Store Functions Factors Utilitarian

Utilitarian items This store would have a good return policy. This store would have many items from which to choose. This store would have reasonable prices. This store would have a lot of products in stock. It would be easy to find what you are looking for at this store. This store would have good bargains. It would be convenient to shop at this store. Social identity items I would get dressed up to go shopping at this store. Shopping at this store would be a social activity for me. I would go with friends to this store. Knowledge items I would go to this store to browse. I would shop at this store to find out what's new and the latest in merchandise. I would glance through this store's catalog to see what is available.

Social Identity

Knowledge