Online Merchandising Cues Influencing the Purchase Intention of Generation Z Mediated by Emotions Using -S-O-R Framework

 

Mary Rani Thomas¹*, Jain Mathew²

¹Assistant Professor, Department of Commerce, Christ University, Bengaluru, Karnataka

²Professor, Department of Management Studies, Christ University, Bengaluru, Karnataka

 

ABSTRACT:

Online retailing is a competitive and dynamic area, which is created based on the artificial brick and motor concept. This artificial brick and motor concept has to create an online shopping atmosphere and design, which need to be strong in terms of attracting the end consumers. And to do this there needs to be a trigger,or in other words a stimulus which causes an action and the response becomes reaction to that stimulus. Based on the past theories by psychologists the stimulus and response is not the only factor which serves as a basis for decision making but there is a third essential and integral dimension that is organism. Organism simply means a system consisting of interdependent parts which are interlinked. This research paper makes an attempt to study the Stimulus-Organism-Response (S-O-R) model in the online context giving an overview on the evolution of S-O-R model in various context of online retailing with respect to the advent of e-commerce. In this study, we identify and explore how online merchandising cues and emotional states of generation Z influence the various dimensions of purchase intentions for apparel shopping. It also aims to find the importance of stimulus and response when mediated by organism which is reviewed as emotion of consumers from the gaps of various literatures.

 

 

INTRODUCTION:

Studying the effect of the environment on human behaviour has its roots in psychology Kawaf and Tagg (2012). The much spoken Stimulus-Organism-Response (S-O-R) model has its credentials to Woodworth (1918) inthe field of psychology. Woodworth popularized and familiarized the concept of Stimulus-Organism-Response (S-O-R) in his book titled “A study of mental life” to describe his functionalist approach to psychology and to bring out the difference from the Stimulus-Response (S-R) approach. The theory contradicts with Ivan Pavlov’s stimulus and response model.

Consumers in the old archetype were considered as machines as they react to the stimuli automatically as stated in the literature of Kawaf and Tagg (2012). Woodworth noticed in his studies that the stimulus causes a different effect or response depending on the state of the organism. Later in the field of psychology Mehrabian and Russell (1974) have used the PAD (Pleasure, Arousal and Dominance) model to explain the emotions which is very much considered in the field of marketing in relation to the context of S-O-R model.

 

These models are further adapted to the retailing context by Donovan and Rossiter (1982)who  have been the first ones to report the effects of retail atmosphere on consumer decision making in the store context. In the online context the S-O-R model was adapted by Eroglu, Machleit and Davis (2001, 2003) who have studied the effects of online store environment with respect to impact of verbal information and pictures on a retail website as a main stimulus and classifying the online shopping behaviour and the time spent on the website which becomes the response mediated by the pleasure and arousal concept which is termed as the affective state. They are the pioneers who went into the intricacies of understanding the S-O-R model distinct from psychological concept and have integrated into retailing concept to show how consumer purchase intention plays a vital role based on different perspectives of online merchandising cues. And also giving emphasis on how atmospherics play a vital role in shopping in store should also be adapted in the online context.

 

Based on the various stimulus gathered form literature related to online context mainly website attributes were considered as online merchandising cues for the purpose of the study. These cues were further divided as high task cues which was directly related to the internet shopping context and low task relevant cues being website cues which were directly not relevant to shopping goals by various authors like (Eroglu, Machleit and Davis ;2001, 2003, Ha and Lennon, 2010) and the outcomes which acts a response was either approach or avoidance as response (Ha ,2006;Manganari, Siomkosand Vrechopoulos ,2009;Haand Lennon,2010; Wu, 2014; Choudhary,2016).In the  study reported by ( Eroglu, Machleit and Davis ,2001, 2003, Manganari, Siomkos and Vrechopoulos ,2009)they have considered Affective, and Cognitive behaviour( Ha,2006; Ha and  Lennon,2010) in another paper in the same year used  pleasure and arousal from the concept of Mehrabian and Russell model(1974)with an addition of  one more item of Perceived amount of information of the website changing the course of the study to integration of technology as a  merchandising cues. Recent studies  by(Wu,2014;Choudhary,2016) have also used pleasure and arousal as mediating variable stimulated by online merchandising cues(online product presentation website visual design, and web advertisement)most of the authors term this pleasure and arousal as emotions.

 

The need to categorise on the basis of generation is studied by Beall, (2016) Reporting Generation Z characteristics to link with behaviour of purchase, Generation Z are considered to display confidence and strive to hear good news, they are optimistic about their future, and they have an exact idea of where they see themselves after a few years. In terms of technological impact Generation Z are fully into visual social media, tablet and Smartphone, living in a world of continuous updates and more use of technologies makes themselves focused and their attention span might be significantly lower than millennial. Generation Z has the capability of quickly shifting between work and fun, with continuous distractions going through the background. Generation Z is also considered born into the world of technologies and inventions. They always have a very high level of expectations from everything, and are considered more brands loyal. So if they are not appreciated they will move on. Therefore the S-O-R model suggests that when a person is exposed to the eternal stimuli the organism changes precede different behavioural responses.

 

REVIEW OF RELATED VARIABLES FOR THE STUDY:

Product Presentation:

The term product presentation has gained a lot of importance due to the main concerns from the reviewed literature. The concept of product presentation is often regarded as product demonstration by various authors such as (Then and Delong, 1999; park and kim, 2003; Katrandjiev and Velinov (2014) in online context and attributed them as online visual elements. It was Chen et al (2010) who identified in their research paper the importance of product presentation on the online platform and supported by various other authors like Kawaf and Tagg (2012) who proposed that features of product presentation which needs attention in the fashion industry through their research .Wu (2014)highlighted  that importance has not been given previously by researchers in terms of model presentation and if this can be taken care of can lead to better imagination context for the consumer which can lead to a purchase intention (Kim et al, 2009; Jeong et al 2009;Yoo and Kim, 2012)generally it was found that customers relate  model and  positive buying. With regards to pictures being presented authors have stated that small pictures lack creating a proper representation in comparison to large enlarged picture (Percy and rosssiters, 1983 store context, Song and Kim, 2012 online context). Zimmerman (2012) Compare the floor merchandising of a physical store  to product presentation on the online platform which is contradictory to some of the authors such as  Wang(2011) who states that presentation of products cannot be compared to online the author gives an analogy of the color blue which  can create stimulation in the store environment where as it would not stimulate the same effect of excitement in an online platform. Even though physical stores differ from online stores they have one common goal which is to bring the consumers to make a purchase as stated by Ha et al (2007), Therefore Importance of product presentation should not be taken too lightly as feeling and touching of products plays a crucial role for the purchase intention which is not available online. Wu (2014) have found from their study that techniques of product presentation should be tweaked in order to fit the context of online platform for better sales and it is need of the hour. The key advantage of product presentation for the retailer is manifold supported by literature. Hence:

 

H1: Product presentation has a positive and significant relationship on Emotion dimension of generation Z:

Atmospherics:

Although many authors have used the term atmospherics in different usage of store environment Kotler (1973) gets the credit for defining the term “atmospheric” supported by Baker (1986) who classifies the store environment in a traditional format and states three ideas. The first being design indicating functional and aesthetic characters .Second factor being ambient (temperature, scent, music and lightning) and third being social factors which relates to people present in the store both customers and employees. Bitner (1990, 1992) also has vastly contributed in her two articles published towards the concept of store atmospherics. Highlighting in their research work Eroglu, Machleit and Davis (2003) state that online cues play a vital role in shaping the consumer response and indeed makes a huge difference if presented in the right manner.

 

The concept of bringing the term online atmospherics into retailing framework of S-O-R model was attempted by Eroglu, Machleit and Davis (2001, 2003) they classified online environmental cues into high task cues which were directly related to the internet shopping context like descriptions of the merchandise, terms of sale, return policies, price, delivery, navigation aids and pictures of the merchandise. Low task relevant cues being website cues which are not directly relevant towards the shopping goals like colour, font, animation, music, sound and entertainment. Here from this literature researchers examine that atmospheric cues which is regarded as most important cues for purchase as a trigger was categorised as low task. Further investigation by Wu and Yuan (2003) proved that reading ability and visual preference is affected by the colour of the text display and highlighting of the text. Manganari (2009) widely investigated the importance of growing usage of buying products online and gave a vast scope for research’s to study about online attributes. Manganari, Siomkos and Vrechopoulos (2009) also developed an online store environment framework(OSEF) through their comprehensive desk research of literature papers from1999 to 2008 and this framework consist of four components relating to virtual layout and design, theatrics , atmospherics and  social presence further extending their work Charfi and Lombardot (2015)in their study categorized three elements of e-atmospherics as virtual agents, use of 3D techniques and control command in a stimulated setting the results state that allowing the internet users to customize these atmospherics can lead to better behavioral intention. After the incorporation of just 3D elements we see the usage of social virtual worlds (SVWs), Such as second life to sell real as well as virtual products on a traditional web store and this is done in order to enhance customer experience of shopping in an attempt made by the paper by Hassouneh, and Brengman (2015) they have aimed at understanding such virtual store design principles. Aesthetic appeal of online merchandising cues play a vital role for creating a positive emotion which makes the user browse and search for the products leading to purchase as investigated by (Mathwick, Malhotra and  Rigdon,2001; Miller,2005).These above terms are getting extended in various literatures in the form of the term ‘virtual store atmosphere’ by Vercopoulos (2000). ‘Web Atmospherics’ also called as ‘webmosphere’ by Childers, Carr, Peck, Carson (2002) in their study. In recent years this term has been gaining a lot of importance with relation to online merchandising cues. For the purpose of the study the researcher has considered atmospherics as the aesthetic appeal on the online platform. Therefore:

 

H2: Atmosphere has a positive and significant relationship on emotion dimension of generation z

Perceived interactivity:

The concept of interactivity is often debated whether to be attributed to the hands of technology or is it a mere perception Stewer (1992).Many literatures have either provided a TAM model or many environment based psychology papers relating to interactivity to communication. Newhagen, Cordes and  levy (1995) who in their seminal paper operationalise the term ‘interactivity’ as a perception of an individual and termed the concept of ‘perceived interactivity’. Additionally to support from literatures authors like Wu (1999) measured perceived interactivity by getting responses from customers who visited the website and grouped them on their responsiveness and ease of use to navigate .Stewer(1992) has been criticized for his work on perceived interactivity since no empirical analysis was made he had just advocated strongly on the concept of operationalizing interactivity on the basis of range, speed, mapping abilities and based on the medium of interaction. It was also found later that easy navigation which is part of the perceived interactivity has become a critical success factor for an online platform Kanerva (1998) supported by Wu (1999) classified perceived interactivity into two constructs consisting of responsiveness and navigation. Eroglu, Machleit and Davis (2001, 2003) also proved in their papers that easy navigational structure which is categorized under high task relevant cues which effect online platform has a positive effect on the consumer response. A growing body of literature has investigated that online marketers have felt the need that the website must be interactive in nature (Mathwick 2002). This in turn will automatically lead to better customer satisfaction and make repeated purchase. Fiore and Jin (2003) have similarly laid emphasis on image interactivity of the website in order to make purchase of apparel is much required. Further extending to similar studies Wu (2014) analyzed that perceived interactivity and layout of the website are important online merchandising cues for consumer purchase intention. For the purpose of the research perceived interactivity is considered to have facilities with regards to understanding the online platform aesthetic design and usability. This leads to:

 

H3: Perceived interactivity has a positive and significant relationship on Emotion dimension of generation Z:

Emotions and connect of purchase intention:

Studies which are related to environment psychology and marketing have often used the concept of emotion interchangeably in the sense of emotion as feelings, attitudes and mood Kawaf(2012).The pleasure, arousal and dominance model(PAD) by Mehrabian and Russel(1974) are among the most widely studied concept with respect  to the context of consumer research based on emotion. Most of the recent studies have dropped the dominance concept as they do not find a fit in the emotion concept in the current scenario (Park, Lennon and Stoel, 2005). Emotions are considered to be more intensive for a short period of time as stated by Jones (2008) therefore cannot be the part of dominance as suggested by various authors .Emotion has two sides being positive and negative and this concept has started gaining importance in most of the consumer studies which are related to online shopping and having website features (Hsu and Tsou, 2011). Previous studies show a variety of approaches towards purchase intention relating to the perception of different authors According to Zeithaml (1988) indicate that purchase intention might be revised with the aspect of quality perception, influence of price and value perception. Purchase intention of selecting a product depends on consumer’s knowledge (Satish and Peter 2004).Purchase intention of consumer depends on the feeling towards packaging and designing of the product (Fung et all 2004). The factors like designing and packaging builds the goodwill of the company and creates an impression of a good qualities product in the company’s point of view ( Dillep,2006).The term intention leads to purchase of a product or service by consumers (Hawkins and Mothersbaugh 2010) Purchase intention in business research is regarded as the most important variable on forecasting the future behaviour of consumers Im and  Ha (2011).Purchase intention which is undoubtedly a variable covered extensively by various literature in various context has been scarcely investigated from the point of view of generation Z purchase intention. In the work carried out by Park, Lennon and Stoel (2005) and in the related references (Eroglu, Machleit and Davis (2001, 2003); Sweeney and Wyber, 2002) it was observed that purchase intention of the online merchandising cues are positively supported by emotion.  For the purpose of the study purchase intention acts as the response factor which is the customer willingness to buy a product through the screening of the stimulus mediated by Emotion. Hence:

 

H4: Emotion has a positive and significant relationship on purchase intention of generation Z

PROPOSED RESEARCH MODEL:

 

 

MATERIAL AND METHODS:

Survey instruments:

For this, the survey instrument was developed using variables from existing empirical studies. A comprehensive review of literature was carried out on the variables identified.

 

Table 1: reflects the selected studied which made of use of these constructs for the study purpose

Construct	Studies
Product presentation	Jin and park,2006 Ha and Stoel,2009 Zimmerman (2012).
Atmospherics	Manganari, Siomkos, Rigopoulou and Vrechopoulos(2011)
Perceived interactivity	Silva and Awli(2008) Zimmerman (2012
Emotion	Jang and  Namkung (2009)
Purchase intention	Zarantonello and Schmitt(2010) Zimmerman (2012) Wu, Lee, Fu, and Wang (2013).

 

A five point likert scale was used to measure the variable chosen, (1) and (5) denoted strongly disagree and strongly agree respectively. The instrument was piloted among a sample of 178 respondents and main study eliminated the needful according to the results and main survey was carried out.

 

Data collection:

Primary data collection has been carried out for the research purpose. The data has been collected from generation Z using online as a medium for apparel shopping. The current study adopted a web based survey method. The data was collected from all over the country using various social networking sites. Only those who have been engaged in online purchase activities or at least have experienced or completed an online transaction have been included in the population (Tangmaneea and Rawsena, 2016) .Therefore avoiding the perceptional bias of the respondents. The type of sampling technique employed by the researcher is judgmental sampling which is a non probability sampling method. The survey is administered to generation Z category of respondents according to Kane (2010) has defined generation Z as those who are born between the year 1995 to 2015 and at present 2017 fall under the age group of 22 years. The sampling technique normally recommended by researchers for infinite population according to (krejcie and Morgan1970) is normally  384 but due to respondents availability and the survey being conducted in Indian context and to avoid response bias, as mentioned by the author Krishnanswami and Ranganatham(2006)greater the sample  lesser the sampling error. The researcher has gathered data of 2000 sample equally 1000 from Male and 1000 from female respondents to further enhance the study on gender basis also.

 

Analysis:

Using structural equation modeling (SEM) the collected data was analyzed with AMOS 21.0 software. The validity and reliability was established by conducting a pilot study and conducting a confirmatory analysis which is used to estimate the measurement model with respect to divergent and discriminant validities. This was followed by testing the structural model framework research hypothesis.

 

 

 

RESULT:

Emotion as the intervening dimension – z - generation:

 

Fig 1: SEM MODEL of STIMULI dimensions and PURCHASE INTENTION with EMOTION as the intervening construct- Z-GENERATION (2000 samples)

Table 2: reliability and item loadings constructs of the full SEM model for stimuli dimensions and purchase intention with emotion as the intervening construct

Latent Variable	Items	Standardized Loadings	Composite Reliability*	Cronbach Alpha	Average Variance Extracted (AVE)
Product Presentation (PP)	PP_1	0.593	0.820	0.822	0.435
	PP_2	0.718
	PP_3	0.772
	PP_4	0.550
	PP_6	0.660
	PP_7	0.637
Atmosphere (A)	A_1	0.375	0.833	0.839	0.464
	A_2	0.655
	A_3	0.727
	A_4	0.745
	A_5	0.780
	A_6	0.723
Perceived Interactivity (PER_INACT)	PERC_INT_1	0.671	0.862	0.862	0.510
	PERC_INT_2	0.695
	PERC_INT_3	0.750
	PERC_INT_4	0.758
	PERC_INT_5	0.721
	PERC_INT_6	0.685
EMOTION	EMOT_1	0.812	0.829	0.830	0.619
	EMOT_2	0.828
	EMOT_3	0.715
PURCHASE INTENTION	PURCH_ITN_1	0.656	0.727	0.732	0.406
	PURCH_ITN_2	0.745
	PURCH_ITN_3	0.657
	PURCH_ITN_4	0.456

 

The findings reveal that most of the constructs are higher than the required reliability. Hence we conclude that all the items grouped completely converge to its respective dimensions. Furthermore, the cronbach alpha values across each of the dimension depicted in the above table have more than 0.70 which is again higher than the required threshold value. Hence, we can again conclude that there is a consistency in the data and also the questionnaire has been administered to the relevant respondents with relevant questions. Also Stevens (1992) suggests using a cut-off of 0.4, irrespective of sample size, for interpretative purposes.

 

Table 3: Goodness-of-fit and Incremental Indices of SEM model of EMOTION as Intervening dimension – Z GENERATION

 

Regression Result:

The above mentioned objective is examined through Regression Result depicted in Table 4.

 

Table 4: Direct Effect of Research Model: Standardized Regression Weights for EMOTION as intervening dimension for Z GENERATION:

* Significant at 5 % level, *Significant at 10 % level.

The regression results are provided in Table 4 Accordingly, it is observed that the p-valueof the relationship between Product Presentation and EMOTION (ß=0.043, C.R = 0.777, p>0.05) is less than the significance alpha level of 0.05, we reject H1 and conclude that Product Presentation has a positive but not a significant (statistically) relationship with EMOTION Dimension.  However, it is observed that Atmosphere has a significant positive relationship with EMOTION (ß =0.346; CR= 6.717, p<0.05), thus, H2 could be asserted.Furthermore, it is observed that it is observed that Perceived Interactivity has a significant positive relationship with EMOTION (ß =0.105; CR= 2.000, p<0.05), thus, H4 could be asserted. Finally, it is observed that EMOTION has a significant positive relationship with PURCHASE INTENTION (ß =0.273; CR= 6.600, p<0.05), thus, H5 could be asserted.

 

Table 5: Summary of test results of the study Hypotheses

Hypotheses	Study Hypotheses	Result
H1	Product Presentation has a positive and significant relationship on EMOTION dimension	NOT Supported
H2	Atmosphere has a positive and significant relationship on EMOTION dimension	Fully Supported
H3	Perceived Interactivity has a positive and significant relationship on EMOTION dimension	Fully Supported
H4	EMOTION has a positive and significant relationship on PURCHASE INTENTION	Fully Supported
H5	There is a significant difference in mean scale of agreement scores between Male and Female respondents with respect to EMOTION and PURCHASE INTENTION dimensions	NOT Supported

 

Inferential Analysis:

H0: There is no significant difference in mean scale of agreement scores between Male and Female respondents with respect to EMOTION and PURCHASE INTENTION dimensions.

H5: There is a significant difference in mean scale of agreement scores between Male and Female respondents with respect to EMOTION and PURCHASE INTENTION dimensions.

 

Table 6: Results of t-test between Gender and purchase intention of buying products for Z -GENERATION.

Variable	Gender	Mean	SD	t-value	p-value
EMOTION	Male	3.60	0.96	- 0.935	0.350
	Female	3.66	0.92
PURCHASE INTENTION	Male	3.72	0.86	6.494	0.000*
	Female	3.38	0.79

* Significant at 5 % level

 

Similarly, a significant difference is observed in mean scale of agreement scores between male and female respondents with respect to PURCHASE INTENTION (t= -0.935, P = 0.350, p >0.05) dimension at 5% level of significance. Hence, the null hypothesis is accepted and alternative hypothesis is rejected. 

 

DISCUSSION AND MANAGERIAL IMPLICATIONS OF THE STUDY:

Through review of literature, it is evident that each author has conceptualized and developed different dimensions of S-O-R framework either giving importance to stimulus,organism or response which acts as dependent, independent and mediating variables for consumer response. Keeping the background literature there is lack of research in S-O-R model where Emotions of generations are not considered. Positive emotion should be considered when developing online merchandising cues (Meloy, 2000).Eroglu, Machleit and Davis (2003) also rightly point out that the online merchandising cues play a vital role in shaping the consumer response and indeed make a huge difference if presented in the right manner.People from same generation, more or less, have similar mindset. So it is apparent that their views towards a new technological development may be similar. The views of the people build their Emotion and this Emotion can be positive or negative, which means they can either look at the benefits and like it or just the negatives and refrain from using it.Therefore the above results also proves that the same gender does not have an impact on the purchase intention mediated by emotions. The results also indicate the only one merchandising cues product presentation does not have an impact on purchase intention when mediated by emotion. The study is in consistent with the fact that emotion has an impact on purchase intention (Wang, 2006)

 

Every mankind needs guidance therefore a research model helps in achieving it. This research paper aims to understand the consumers' behaviour keeping the organism factor playing a vital role when it comes to buying or even visit an online shopping website. This research endeavour can contribute to the basic understanding of emotion as a key factor in promoting purchase. The developers and the management of specific websites can make appropriate changes to help the consumers to have a better experience and also help their own cause by being able to push their products faster and more efficiently.

 

CONCLUSION AND SCOPE FOR FURTHER STUDY:

The challenges faced by the online retailers are different from traditional retailers these challenges are across borders and geographical areas. This means that consumer sovereignty prevails in terms of switching cost of the website from one to another due to lack of presentation. Different consumers also exhibit different behaviour when it comes to their social life and purchasing patterns and personalities influence our intentions to shop online and in traditional stores(Sheer, 2014).It is therefore important for the marketers in the digital era to identify what more they can do to attract the consumers in order to increase sales. To understand the importance of consumer perspectives the inputs of S-O-R model is important to be studied. So it is important to tap these variables by understanding the emotional traits of the consumers and design a visual space according to the needs of generation Z.

 

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Accepted on 28.10.2017            © A&V Publications All right reserved