Effects of Store Image on Perceived Product Value: A Pilot Study Using Computer Simulation

By Ahmed Alawadhi and So-yeon Yoon.

Published by The International Journal of Design Management and Professional Practice

Format Price
Article: Print $US10.00
Published online: June 13, 2014 $US5.00

Despite the growing popularity of online stores, consumers still make the vast majority of their purchases in physical retail stores. The distinct environment of retail stores with their unique atmosphere is an important part of the shopping experience and is a fertile opportunity for retailers to excel in today’s competitive market. Store image, defined as unique attributes of the store’s atmosphere, layout, and product display perceived by a consumer, has been recognized as an effective marketing tool for marketers and retailers to promote their products. However, the role of store image is yet to be acknowledged for practical decisions by interior designers, as well as business owners. In this study, we empirically examine if and to what extent store image influences product value, the consumers’ willingness to purchase a product, express feelings toward a product, or estimate the cost of a product, by using high-fidelity virtual reality based simulation. We investigate the effect of store image on product value with the mediation of shopping motivation for two types of store image: prestige and discount. The experiment, based on statistical analyses of 32 participants, provides a better understanding of how prestige-store images affect perceived product value as compared to a discount-store image. The results demonstrate the advantage of a store environment with a high-end, aesthetically appealing design where products are perceived to be better, more valuable, and highly desirable. The mediation results show that shopping motivation plays a strong role between store image and purchase intentions. The findings indicate that shoppers more and less willing to purchase in different store settings depending on shopping motivation tendencies. Findings will help interior designers communicate more effectively with clients of retail interiors using research-driven knowledge and persuasive design strategies.

Keywords: Interior Design, Retail Design, Store Image, Simulation

The International Journal of Design Management and Professional Practice, Volume 7, Issue 3, September 2014, pp.31-52. Article: Print (Spiral Bound). Published online: June 13, 2014 (Article: Electronic (PDF File; 1.543MB)).

Ahmed Alawadhi

Doctoral Student, Architectural Studies, University of Missouri, Columbia, MO, USA

Ahmed Alawadhi is a PhD candidate in the department of architectural studies at the University of Missouri-Columbia. He received his BA in interior design from Kuwait and an MFA from Iowa State University. His research interests include retail design, consumer behavior, and virtual reality.

So-yeon Yoon

Associate Professor, Design and Environmental Analysis, Cornell University, Ithaca, NY, USA

So-Yeon Yoon is an associate professor in the department of design and environmental analysis at Cornell University. She is a licensed and practiced interior designer in both South Korea and the US with a PhD in information technology with an emphasis on human-computer interaction. Her research explores the interdisciplinary areas of design computing and visualization.