Retail atmospherics effect on store performance and personalised shopper behaviour: a cognitive computing approach

Abstract

Purpose The best possible way for brick-and-mortar retailers to maximise engagement with personalised shoppers is capitalising on intelligent insights. The retailer operates differently with diversified items and services, but influencing retail atmospheric on personalised shoppers, the perception remains the same across industries. Retail atmospherics stimuli such as design, smell and others create behavioural modifications. The purpose of this study is to explore the atmospheric effects on brick-and-mortar store performance and personalised shopper's behaviour using cognitive computing based in-store analytics in the context of emerging market.

Design/methodology/approach The data are collected from 35 shoppers of a brick-and-mortar retailer through questionnaire survey and analysed using quantitative method.

Findings The result of the analysis reveals month-on-month growth in footfall count (46%), conversation rate (21%), units per transaction (27%), average order value (23%), dwell time (11%), purchase intention (29%), emotional experience (40%) and a month-on-month decline in remorse (20%). The retailers need to focus on three control gates of shopper behaviour: entry, browsing and exit. Attention should be paid to the cognitive computing solution to judge the influence of retail atmospherics on store performance and behaviour of personalised shoppers. Retail atmospherics create the right experience for individual shoppers and forceful use of it has an adverse impact.

Originality/value The paper focuses on strategic decisions of retailers, the tactical value of personalised shoppers and empirically identifies the retail atmospherics effect on brick-and-mortar store performance and personalised shopper behaviour.