FROM ATMOSPHERE TO ACTION: HOW RETAIL DESIGN SHAPES CONSUMER BEHAVIOUR AND PURCHASE DECISIONS
Abstract
In today's fiercely competitive retail landscape, the interior design of retail stores is a key strategic element that can significantly impact consumer behavior and decision-making. The study investigates how the interior design elements such as spatial layout, lighting design, colour schemes and materials, visual merchandising, furniture and fixtures, and signage and way finding affect consumer behaviour, by employing emotional response as a mediating variable. This study builds on the Stimulus–Organism–Response (S-O-R) model of retail environment stimuli on consumers' emotional responses and the resulting behavioural responses. The research method used was quantitative research, and the data were obtained by using a structured questionnaire with a five-point Likert scale from the retail consumers who have already done shopping in a modern retail environment. Partial Least Squares Structural Equation Modelling (PLS-SEM) with SmartPLS software was used for analysis of the data. The measurement model showed good reliability and validity, and the structural model showed that all interior design elements were significantly affecting consumer behavior and purchase decisions. Of these, visual merchandising and lighting design had the most significant impacts. In addition, emotional response was shown to have a significant mediation effect on the relationship between retail interior design and purchase decision. The results underscore the fact that retail interior design is not only a visual or aesthetic aspect, but a strong psychological and behavioral factor influencing consumer experiences and increasing the probability of purchase. The study adds to the body of work as it provides empirical evidence from an integrated model in an emerging market environment and provides practical implications for retailers who want to improve customer engagement by applying strategic interior design.
Keywords: Retail Interior Design, Consumer Behaviour, Purchase Decision, Emotional Response, S-O-R Model, SmartPLS
