Store Environment in Organised Retail Outlet: Conceptual Framework and Scale Development

Author

  1. Pooja G. Luniya
  2. Manoj Verghese

Abstract

The aim of this paper is to conceptualize, purify, refine and develop the multi-item scale of retail store environment. The authors attempt to develop multiitem scale by following a four-stage approach: defining the construct, item generation and refining, data collection and purification through exploratory factor analysis and validation with the help of confirmatory factor analysis. Data was collected from Chhattisgarh state of Central India. The scale was tested and found to be highly reliable with three factors of store environment, namely, ambience, design and social factors with 15 items in total. Organizations, academicians and researchers will get insights on the complex and multi-dimension framework of store environment and will be able to measure the dimension of store environment and consumer
behaviour relevant to their target group. After identifying the gap on store environment literature, analysis supports that focus on developing scale on all dimensions of store environment was not yet addressed.

Introduction:

According to the report of the Confederation of Indian Textile Industry, the Indian economy will be one of the fastest growing economies with 9.8% compounded annual growth rate (CAGR) between years 2011 and 2020. It’s being projected that the Indian retail market will grow at a compounded annual growth rate (CAGR)
of 13% with an increase from USD 25 billion in 2007 to USD 124 billion in 2020. The Indian retail market is witnessing a dramatic change in market trends and
consumers’ buying behaviour, especially in Tier-II and Tier-III cities due to an upsurge in consumerism, increased income levels, fluctuating consumption
pattern and spending habits, and change in lifestyle pattern of consumers. India’s organised retail market is rigorously planning to expand the number of stores
across the country rapidly; that emerged as the biggest challenge for retailers to position brand image among consumers for gaining competitive advantage over
prevailing rivals in the offline market. An attractive retail environment can be a possible way to achieve the advantage.

The concept of store environment was addressed and focussed upon by various researchers in recent decades. From the past literature, it has been observed
that researchers emphasised on limited store environmental factors. A few researchers constructed a framework by demonstrating in-depth literature review of several store environment variables (Turley & Milliman, 2000; Bohl, 2012). Based on their classification and body of knowledge, the present study attempts to develop and validate the scales for various store environment related items.

 

 
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