Extreme makeover: short- and long-term effects of a remodeled servicescape

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Abstract

Using survey and transaction data from a natural experiment in a fast-food chain, the authors investigate the effects of store remodeling. They test (1) short- and long-term effects on customers' cognitions, affect, and behavioral intentions; (2) the moderating impact of spontaneous versus planned and group versus single-customer store visits; and (3) the differential effects on two store performance measures: average customer spending and store traffic. The results show that, in line with adaptation-level theory, short-term remodeling effects lose strength in the long run (i.e., after six months). Furthermore, customers on a spontaneous trip or in a group tend to be more responsive to store remodeling than customers on a planned trip or alone. Finally, whereas average spending increases in the short run and then returns to the baseline, store traffic initially remains unaffected and even shows a dip in the long run. These findings imply that ignoring the time-variant character of remodeling effects, the nature of customers' store visits, or the impact on store traffic may lead to inappropriate allocation of marketing resources.

Original languageEnglish
Pages (from-to)71-87
Number of pages17
JournalJournal of Marketing
Volume75
Issue number5
DOIs
Publication statusPublished - Sep 2011

Keywords

  • servicescape
  • store remodeling
  • adaptation-level theory
  • marketing effectiveness
  • long-term effects
  • SOCIAL FACILITATION
  • STORE ENVIRONMENT
  • BACKGROUND MUSIC
  • BEHAVIOR
  • IMPACT
  • CONSUMPTION
  • SATISFACTION
  • CUSTOMERS
  • CONSUMERS
  • PATRONAGE

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