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Effects of design factors on store image and expectation of merchandise

quality in web-based stores
Jungmi Oha, Susan S. Fioritob,, Hira Choc, Charles F. Hofackerd
a
Department of Family and Consumer Sciences, Delaware State University, Dover, DE 19901-2277, USA
b
Department of Textiles and Consumer Sciences, Florida State University, Tallahassee, FL 32306-1492, USA
c
Department of Design, Housing and Merchandising, Oklahoma State University Stillwater, OK 74074, USA
d
Department of Marketing, Florida State University, Tallahassee, FL 32306-1110, USA

Abstract

This study investigates two design factors of store atmosphere in relation to store image and consumers’ expectations of merchandise
quality for web-based stores. We address this purpose through the use of the Stimulus–Organism–Response (S–O–R) model on which
five hypotheses were drawn based on research conducted with brick-and-mortar and web-based stores. In order to test the hypotheses,
four treatment combination stimuli were developed by two types of storefront designs (thematic/non-thematic) and two types of
information display (picture-based/text-based). A total of 307 college student questionnaires were analyzed. The findings provide a better
understanding of consumer’s behavior toward web-based stores. Experiment results suggest that, consumers reacted more positively to
web-based stores using a thematic and picture-based store design than web-based stores using a non-thematic and text-based store
design. The methods of information display (picture-based/text-based) were positively related to a convenient store image and
consumers’ expectation of merchandise quality. In addition, there was a mediating effect of store image between store atmosphere and
consumers’ expectations of merchandise quality.
r 2007 Elsevier Ltd. All rights reserved.

Keywords: Store atmospheric design factors; Store image; Merchandise quality; Web-based stores

1. Introduction of store image and consumers’ expectation of merchandise

quality. We propose that there are two design factors that
The atmospheric environment in a store includes various define store atmosphere for web-based stores, i.e., store-
stimuli, such as color, sound, scent, taste, layout and space, front design and methods of information display. While
which are important clues for buyers. Kotler (1973) was the most sensory stimuli are being used in brick-and-mortar
first to use the term ‘‘atmosphere,’’ while other researchers stores, visual factors are the main tool to establish an
followed and defined and categorized the attributes of store atmospheric environment in web-based stores. Lohse and
atmosphere in brick-and-mortar stores (Baker, 1986; Belk, Spiller (2003) suggested that web pages play the role of
1975; Berman and Evans, 1998; Turley and Milliman, window displays or store layouts in brick-and-mortar
2000) and in web-based stores (Eroglu et al., 2003; Lohse stores. Web-based stores present information with design
and Spiller, 2003; Menon and Kahn, 2002; McKinney, attributes (graphic, visual icons, pictures, etc.) on their web
2004; Richard, 2005; Williams and Dargel, 2004). Previous pages, thus creating a store atmosphere, like the architec-
research in brick-and-mortar stores and web-based stores ture of a storefront or merchandise layout in brick-and-
revealed that store atmosphere influences consumers’ mortar window displays.
perception of product quality (Chebat and Michon, 2003). We note that there are two contrasting strategies in each
The focus here is on store atmosphere, in particular, storefront design and each method of information display
within-store design factors that affect consumers’ perception in web-based stores. Like brick-and-mortar stores, we
observe web-based stores with a thematic storefront design
Tel.: +1 850 644 9883; fax: +1 850 645 4673. (e.g., levi.com) and web-based stores with a non-thematic

0969-6989/$ - see front matter r 2007 Elsevier Ltd. All rights reserved.
doi:10.1016/j.jretconser.2007.03.004

Please cite this article as: Oh, J., et al., Effects of design factors on store image and expectation of merchandise quality in web-based stores. Journal of
Retailing and Consumer Services (2007), doi:10.1016/j.jretconser.2007.03.004
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2 J. Oh et al. / Journal of Retailing and Consumer Services ] (]]]]) ]]]–]]]

storefront design (e.g., llbean.com). A thematic storefront store image and consumers’ expectation of merchandise
design presents related products in a lifestyle-type atmo- quality. This review is followed by a discussion of the
sphere reflecting the store identity, while a non-thematic relationships between variables in order to develop testable
storefront design merely presents the brand name, product hypotheses for an empirical study. The methodology of the
pictures and merchandise selection information. Informa- study is followed by the presentation of the results and
tion display in web-based stores is based on pictures or discussion. Finally we present the conclusions and implica-
text, or the combination of pictures and text. Apparel web- tions, along with the limitations and recommendations for
based stores often provide merchandising information that future studies.
includes garment care, color, construction, fabric, etc.
using text, pictures or a combination of text and pictures. 2. Theoretical framework
Literature on brick-and-mortar stores reveals the effec-
tiveness of store design with a theme and picture-based A Stimulus–Organism–Response (S–O–R) model (Do-
information cues (Gutman and Alden, 1985; Marsh, 1999). novan and Rossiter, 1982; Mehrabian and Russell, 1974)
However, no empirical research to date has revealed the has been widely adopted and tested in order to understand
same effectiveness of the strategies in web-based environ- consumers’ shopping behavior through the store environ-
ments. In web-based stores, pictures create a positive ment. Eroglu et al. (2001) developed the theoretical model
response from consumers (Geissler, 2001), however, too to describe how the web-based stores’ environment
many images reduce the speed of presentation and screen influences consumers’ emotional and cognitive states that
transition that may negatively influence consumers’ reac- then alter various aspects of shopping outcomes. They
tion in the web-based environment (Yang, 1994). Previous empirically tested their model and concluded that the
research in brick-and-mortar stores suggested store atmo- atmospheric qualities of the store web site increased the
sphere had a positive influence on store image (Baker et al., level of shoppers’ pleasure (Eroglu et al., 2003). One recent
1994) and the expectation of merchandise quality (Mazur- study proposed that atmospheric variables contributed to
asky and Jacoby, 1985). However, these relationships consumers’ satisfaction on the Internet with different
between variables should be redefined in web-based stores orientations toward shopping (McKinney, 2004). It was
because of its many unique features. Ernst and Young also found that some atmospheric variables (e.g. descrip-
(1998) and Jarvenpaa and Todd (1997) suggest that the tion of the product, graphic/photos/coupons) influenced
web-based environment emphasizes the importance of satisfaction for all consumers, regardless of their shopping
safety, convenience, and entertainment in store image. orientation.
While store atmosphere is considered a critical strategy in This study focuses on consumers’ reaction to how a web-
competitive markets for brick-and-mortar stores, studies of based store is designed. While previous studies have
store atmosphere in web-based environments are meager examined online shoppers’ attitude and satisfaction (Eroglu
despite the rapid development and growth of web-based et al., 2003; McKinney, 2004), the current study highlights
stores and their sales volume. In 1998, 46 million consumers the store atmosphere, through the mediating effects of
in America alone bought online, each spending on average store image, which is the impact on consumers’ merchan-
$350 a year (The Economist, 1997). In fact, in the 3 years dise expectation on the web environment. The S–O–R
that followed, Internet sales grew from $5.0 billion (in 1998) model will be used to examine the effects of design factors
to $32.6 billion in 2001, which is a six-fold increase (ICSC on store image and consumers’ expectation of merchandise
Research Quarterly, 2002, p. 9). One research study quality (Fig. 1). In our framework, Stimuli refers to
predicted that annual online sales would reach $230 billion variables that are used to create the web-based stores.
by 2010 when the Y generation, most of which are college- Examination of design factors, storefront design and
aged students, become a powerful purchasing group information display is the focus of this study. Organism
(Twenty Trends for 2010: Retailing in an age of uncertainty, is represented by affective and cognitive intermediary states
2003). As the number of women with higher education levels and processes that moderate the relationship between the
and jobs in technology increases (Fountain, 2000), this stimuli and response. Consumers’ affective states would
segment is making headway into the previously considered relate to an emotional sense, and the cognitive states
male-dominated market of on-line shopping (Burstein and would relate to a rational sense in the consumer decision-
Kline, 1995; Electronic Retailing, 1998). making process. This study will examine consumers’
The purpose of this research is to investigate effective perception of store images, safety, convenience, and
ways of establishing store atmosphere in web-based entertainment. The Response represents individuals’ ex-
environments with two contrasting strategies in storefront pression, and we will examine consumers’ expectation of
design (thematic/non-thematic) and methods of informa- merchandise quality.
tion display (picture-based/text-based) using two depen-
dent variables, store image and consumers’ expectation of 2.1. Store atmosphere
merchandise quality. To address the purposes of our study,
we begin by developing a theoretical framework and Kotler (1973) introduced the concept of store atmo-
reviewing previous literature regarding store atmosphere, sphere, that is, the effort to design a physical store

Please cite this article as: Oh, J., et al., Effects of design factors on store image and expectation of merchandise quality in web-based stores. Journal of
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ORGANISM
STIMULUS

Store Store Image

Atmosphere RESPONSE

Consumers’
Store front Safety Expectation
Design
Convenience Merchandise
Quality
Information Entertainment
Display

Fig. 1. Theoretical framework.

environment that provides specific emotional effects in successfully managed to match the store atmosphere in its
customers that encourages consumers’ purchasing deci- stores and on the web in order to maintain a consistent
sion-making. Belk (1975) indicated that physical surround- image through all its channels of distribution. In addition,
ing is one situational characteristic that stimulates the effects of social factors are not evident in web-based
consumer behavior within an environment. Creating store stores due to their use of impersonal transactions.
atmosphere is a competitive strategy used by retailers Lohse and Spiller (2003) presented many design factors
(Marsh, 1999) to influence consumer behavior, which in when they compared environmental attributes in brick-
turn increases sales (Chebat and Michon, 2003). Massara and-mortar stores to environmental attributes in web-
(2003, p. 33) proposed, ‘‘an environment richer in ambient- based stores (e.g., store window displays vs. home page;
esthetic cues enhances the holistic and hinders the store layout vs. screen depth, browse and search functions,
analytical responses of the subject.’’ indices, image maps; number of floors in the store vs.
Baker (1986) developed a typology categorizing the hierarchical levels of the store; and salesclerk service vs.
atmospheric store environmental elements into three product descriptions, information pages, gift services,
groups; ambient factors, design factors, and social factors. search function, etc.).
Ambient factors are non-visual, background conditions of The opening page of a web-based store takes on the role
the store, including elements, such as music/sound, light- of window displays in brick-and-mortar stores. The first
ing, scent and temperature. Store design factors were page of virtual stores delivers a first impression to
classified into functional (store layout, display, comfort, consumers while window displays in brick-and-mortar
and privacy) and esthetic (architecture, color, material, and stores deliver the first impression to consumers. Window
style) elements (Marans and Spreckelmeyer, 1982). Using displays create merchandise impressions and dispense
those elements, retailers create a store identity and information about merchandise offered for sale inside the
encourage consumers’ shopping activities. Also, store store. Furthermore, window displays help to reach out and
design is a way of presenting merchandise in a store to attract people from outside of the store to the merchandise
facilitate and stimulate consumers’ purchasing behavior. offerings to be found inside and helps to provide a buying
Thus, store design has been called a silent salesman because mood within the store. Surveys found that well-managed
it has been used in an attempt to attract and hold window displays in all types of retail stores invariably
consumers’ attention (Buttle, 1984). Social factors describe increase sales of the merchandise displayed (Cowee, 1951;
the people who are within the store environment that Gould, 1951; Wilkenson et al., 1982). Lohse and Spiller
includes the number, type and behavior of salespeople and (2003) noticed that screen design and layout is closely
other customers. Similarly, Turley and Milliman (2000) related to sales in web-based stores.
used the term ‘‘human variable,’’ regarding employees, Thus, this study focuses on two design factors (storefront
space, and consumer characteristics and privacy, as the design and methods of information display) of store atmo-
third category of store atmosphere. sphere in the opening page of web-based stores. Following,
Among the three categories, in web-based stores, the we will contrast the different strategies for planning
design factors are considered more influential than ambient storefront design and methods of information display.
and social factors in regard to consumers’ reactions.
Although web-based stores also use music/sound to attract 2.2. Design factors: storefront design and methods of
consumers, visual settings are more obvious in establishing information display
store atmosphere in web-based environments. Indeed, web-
based stores use many visual design factors such as screen A storefront design in a web-based store can be defined
layout, information display, color, pictures or images, as a device to attract consumers in the same way as a
banner ads, size of characters and signage. Gap, Inc. has window display in a brick-and-mortar store. We propose

Please cite this article as: Oh, J., et al., Effects of design factors on store image and expectation of merchandise quality in web-based stores. Journal of
Retailing and Consumer Services (2007), doi:10.1016/j.jretconser.2007.03.004
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that there are two types of storefront designs that must be method of information display (picture/text-based) in a
distinguished; one is a thematic storefront design, and the web-based store atmosphere. Those strategies will be
other is a non-thematic storefront design. investigated as to their effectiveness in relationship to store
A thematic storefront design reflects a store identity that image and consumers’ expectation of merchandise quality.
will appeal to its customers by presenting related products
in a lifestyle-type atmosphere. Many studies support the 2.3. Relationships between store image and design factors in
effect of the thematic store environment. The most store atmosphere
powerful window display uses a story or a concept as a
theme (Lee, 1951), and Berman and Evans (1998) suggested An image is an abstract picture of an object or idea in an
that a prestige store image is formed with a thematic individual’s mind. Since Martineau (1958) stated that
display rather than a non-thematic or rack display. image is the personality of a retail store, many researchers
However, web designers have found that sophisticated have defined retail image based on consumer perceptions.
front-page designs attract the attention of customers, as Retailers manipulate consumer’s total perception of the
well as distract and even annoy some customers (Geissler, store’s image in order to encourage purchasing behaviors.
2001). In addition some consumers experienced enjoyment, Since consumers perceive store image as a dynamic
with the website while others experienced frustration formation, a store image is changed after each exposure
(Jarvenpaa and Todd, 1997). to the store environment. Some researchers suggested store
North Sails Catalog, a Seattle-based company selling image includes store atmosphere as a component (Lind-
apparel for the sailing lifestyle, had significantly increased quist, 1974; Zimmer and Golden, 1988) and others
its sales after it changed the cover page of its catalog. The considered store image as a consequence of store atmo-
new cover page featured men and women wearing sailing sphere (Baker et al., 1994). This study, for the most part,
outfits enjoying themselves on a beautiful sail boat, thus follows the theoretical perspectives of Baker et al. (1994)
illustrating a themed story with a lifestyle approach (Burke, and proposes that store atmosphere provides cues to
1998). Most designer brand web sites (Guess, Calvin Klein, consumers’ inferences of store image. Our interest lies in
Georgio Armani, etc.) and national brands (Nike and the investigation of retail strategies that contribute to
Levi’s) have a thematic opening page that consists of successful environments in web-based stores.
lifestyle type pictures and the brand/store name or logo. As related to web-based stores, Jarvenpaa and Todd’s
The following are current web examples of this concept: (1997) study and Ernst and Young’s (1998) study suggest
calvinklein.com; guess.com; joeboxer.com; lee.com; levi. three aspects of store image that are concerned with
com; and nike.com. consumers’ perceptions of web-based stores, i.e., safety,
Contrasting those companies that have designed stores convenience, and entertainment. Jarvenpaa and Todd
with a theme, many specialty retail stores and discount studied consumers’ reactions to shopping on the WWW
retail stores, such as, Designer Outlet, Kmart, L.L. Bean, and found that consumers were reluctant to reveal personal
Talbots, etc., have non-thematic storefront designs. A non- information and take risks with merchandise and money.
thematic storefront design merely presents the brand name; Grewal et al. (2003) defined consumers’ risk perception in
product pictures and merchandise selection information. the Internet retailing context. According to their descrip-
The following are examples of this concept: designeroutle- tion, a safe store image is the extent to which consumers are
t.com; eddiebauer.com; kmart.com; llbean.com; talbots. not troubled by risk with the products’ function (failure in
com; and walmart.com. end use, durability, matchability, style stability and size),
The second design factor under consideration in this price (overpriced item), and transaction (a faulty item,
study is method of information display. Information handling/shipping charges and shipping uncertainties,
display is a device that presents merchandise and plays security of privacy and personal information) when making
the role of displaying information within a brick-and- a purchase at a web-based store.
mortar store. Retailers primarily use pictures or words to The second factor, convenience is the most compelling
provide merchandise and service information. This re- factor to Internet shoppers (Jarvenpaa and Todd, 1997). In
search proposes two methods of information display in web-based environments, consumers may visit a store at
web-based stores, text-based information display and any time in any place and compare products and prices
picture-based information display. In web-based stores, easily. Thus, generally, consumers perceive that a web-
Geissler (2001) found that positive communication effec- based store will save them time and effort. However,
tiveness is related to the number of images used on a web Jarvenpaa and Todd reported 31 percent of respondents
site. However, image downloading often takes time have negative feelings about merchandise assortment at
depending on the condition of the user’s computer system, web-based stores, and 44 percent of respondents have a
servers, image sizes, etc. Yang (1994) addressed the speed hard time finding products in a web-based store. Wolfin-
of presentation and screen transition as an important barger and Gilly (2003) revealed the most significant
variable to web-based interactive advertisements. antecedent of positive consumer behavior is website design
We are investigating two contrasting strategies for that serves consumers in finding what they want in an
each storefront design (thematic/non-thematic) and each efficient way.

Please cite this article as: Oh, J., et al., Effects of design factors on store image and expectation of merchandise quality in web-based stores. Journal of
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Finally, entertainment the third store image factor is storefront and a picture-based information display than
described by consumer’s enjoyment upon visiting a web- they will from a web-based store that is designed with a
based store when purchasing or searching out products. non-thematic storefront design and a text-based informa-
A survey by Ernst and Young (1998) reported that Internet tion display.
shopping is more convenient, fun and economical; also it
has more choices than shopping through other distribution Hypothesis 2. Consumers will perceive a more convenient
channels. Jarvenpaa and Todd (1997) name the entertain- store image from a web-based store that is designed with a
ment variable ‘‘playfulness,’’ which describes recreational or thematic storefront and a picture-based information dis-
hedonic shopping activities. A recent study concluded that play than they will from a web-based store that is designed
consumers expect more enjoyment in online environments with a non-thematic storefront design and a text-based
than they do shopping in brick-and-mortar environments information display.
(Childers et al., 2001). Thus, shopping on the Internet
provides cognitive and informational experiences as well as a Hypothesis 3. Consumers will perceive a more entertaining
hedonic consumption experiences (Menon and Kahn, 2002). store image from a web-based store that is designed with a
Literature both on brick-and-mortar stores and on web- thematic storefront and a picture-based information dis-
based retail stores suggests possible relationships between play than they will from a web-based store that is designed
design factors of store atmosphere and three dimensions of with a non-thematic storefront design and a text-based
store image in web-based stores. Both a thematic storefront information display.
design and a picture-based information display commonly
emphasize visual components through pictures, graphics,
icons, and logos. Those visual settings especially appeal to 2.4. Relationship between consumers’ expectation of
young consumers who depend on visual icons as an merchandise quality and design factors in store atmosphere
external support (Gutman and Alden, 1985) and frequently
shop in web-based stores (Twenty Trends for 2010: Consumers’ expectation is a standard or belief regarding
Retailing in an age of uncertainty, 2003). the performance of an object. Under certain conditions,
Visual consumers perceive less risk from merchandise in consumers use their expectations as guidelines against
a store with pictures that reflect the store or merchandise which with they evaluate the quality of products. Previous
identity (Mazurasky and Jacoby, 1985). Pictures rather research has shown that expectations and confirmation of
than text appear to make consumers feel the store has an expectations are important determinants of satisfaction
easy-to-shop environment (Eckman et al., 1990; Gutman (Oliver, 1980) as well as the key determinants of future
and Alden, 1985; Marsh, 1999; Mazurasky and Jacoby, consumer purchasing decisions (Curry and Riesz, 1988;
1985) and creates a more favorable, convenient shopping Mazurasky and Jacoby, 1985; Prakash, 1984). Meeting
environment as compared to using only words to highlight expectations results in favorable consumers’ purchasing
the store or merchandise characteristics (Marsh, 1999). decisions and satisfaction.
Visual settings stimulate shoppers who seek enjoyable Generally, it has been found that store atmosphere
experiences while shopping. Bellenger and Korgaonker influences the perception of the merchandise quality
(1980) found that consumers, who enjoy spending time (Darden and Schwinghammer, 1985; Olshavsky, 1985).
shopping, tend to be information-seekers who consider Mazurasky and Jacoby (1985) found that consumers
store design an important factor in shopping. In addition, perceive high levels of merchandise quality in brick-and-
Ohanian and Tashchian (1992) noted that recreational mortar stores designed with art that reflects the store or
shoppers are interested in pleasant physical facilities as an merchandise identity. Mazurasky and Jacoby also found
important aspect of their shopping behavior. that pictures of stores’ interior were second only to brand
On the other hand, a brick-and-mortar store displays name in being the most heavily accessed of several cues
visual information throughout the store that shows fabrics from which consumers can evaluate merchandise quality.
and colors to help guide customers (Marsh, 1999) making Others suggested a thematic store design creates a positive
the shopping environment more comfortable and enjoyable emotion that is connected to the perception of a higher
(Gutman and Alden, 1985). Likewise, according to a web level of merchandise quality, as well as service quality
design research study, well-designed web sites lead to (Baker et al., 1994).
consumer playfulness (Liu, 1997), and the number of Visual information about clothing (e.g., style, color and
pictures has a positive relationship with consumers’ fabric) encourages consumers to try on clothing items and
perception of store interactivity, which has the potential to make a purchase (Eckman et al., 1990). Liu (1997) found
to bring an entertaining store image to the consumer that certain design factors of web sites lead customers to
(Geissler, 2001). These considerations lead to the formation have favorable attitudes toward merchandise quality on the
of the following hypotheses. site. Similarities were found in these studies of brick-and-
mortar stores and web-based stores. Therefore, we
Hypothesis 1. Consumers will perceive a safer store image hypothesized the next relationship between store atmo-
from a web-based store that is designed with a thematic sphere and consumers’ expectation of merchandise quality.

Please cite this article as: Oh, J., et al., Effects of design factors on store image and expectation of merchandise quality in web-based stores. Journal of
Retailing and Consumer Services (2007), doi:10.1016/j.jretconser.2007.03.004
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Hypothesis 4. Consumers will expect higher quality mer- manipulate. Consumer characteristics were based on
chandise from a web-based store that is designed with a previous research studies already mentioned in the
thematic storefront and a picture-based information dis- literature review. These variables included various con-
play than they will from a web-based store that is designed sumer characteristics (gender, age, major in college and
with a non-thematic storefront design and a text-based identity of the decision-maker for purchasing clothing), the
information display. capability of the consumer’s computer and situational
characteristics. By using a computer laboratory at a major
2.5. Mediating role of store image between store atmosphere university, the capability of the computers, especially the
and consumers’ expectation of merchandise quality speed of screen transition, was controlled. The speed of
presentation and screen transition is very important to
Literature on brick-and-mortar stores revealed that store consumers’ behavior with computer technology (Yang,
atmosphere influences consumers’ expectation of merchan- 1994). In order to control the situational characteristics of
dise quality and store image (Baker et al., 1994; Shostack, the user, before starting the hands-on shopping experience,
1987; Ward et al., 1992). Also, there are direct relationships subjects received an instruction sheet explaining the task.
between store image and consumers’ expectation of The instructions asked the user to plan to purchase a pair
merchandise quality. Store image influences the consumer’s of khaki pants for their use as casual campus wear. Khaki
price perception by modifying consumers’ expectation of pants were chosen as the item for our experiment because
quality (Heisey, 1990), and thus store image acts as a they are a popular clothing item without age limitation for
surrogate for quality (Olshavsky, 1985). Therefore, we both men and women.
assume that store atmosphere affects consumers’ expecta-
tion of merchandise quality directly and indirectly through 3.2. Development of stimuli
store image in web-environments. This rationale leads to
the formation of our last hypothesis. A thematic web site reflects lifestyle or brand identity
with pictures and the brand/store name or logo, while a
Hypothesis 5. Store image will mediate the relationship non-thematic storefront design simply presents a brand
between store atmosphere and consumers’ expectation of name, product pictures, and merchandise selection infor-
merchandise quality. mation. In our study, we created two experimental
storefront designs for a web-based store, a thematic and
3. Methodology a non-thematic web page (see Figs. 2 and 3).
The familiarity of brand and store name influences
3.1. Research design consumers’ perceptions of store image as well as their
perceptions of the quality of merchandise (Stokes, 1985;
This study was conducted as a factorial experiment in Wu and Petroshius, 1987). In order to avoid halo effects of
which two design factors of store atmosphere, storefront price (Heisey, 1990; Sproles and Kendall, 1986) and
design and method of information display, were manipu- familiarity of brand/store name, price information and
lated. Four treatment combinations provided for two brand name were not presented and a fictitious store name
strategies of storefront design (thematic/non-thematic) was used in the experimental storefront designs.
and two methods of information display (picture-based/ As a device for presenting merchandise and product
text-based) in a between-subject design. The independent information, current web-based stores employ a text-based
variables are both the storefront design and method of information display or a picture-based information display,
information display. or a combination of these two approaches. This study
The dependent variables were three store images (safety, compared the two methods of information display, text-
convenience, and entertainment) and consumers’ expecta- and picture-based. We selected garment care, color,
tion of merchandise quality. These two dependent variables construction, fabric, size and silhouette, which are often
were measured on a seven-point Likert-type scale (7— provided by apparel web-based stores as merchandise
strongly agree; 1—strongly disagree) asking the respondent information cues.
to indicate their level of agreement to the statement for a Focus groups were conducted to develop store design
particular web site created for this study. Safety measures factors. In this procedure, 12 subjects were shown 14
include consumers’ perceived functional and financial risks, storefronts designs of existing web-based stores and were
and privacy issues. Convenience measures include con- asked to describe the characteristics of the store. The
sumers’ perceptions that the store makes shopping easy thematic storefront design consisted of one picture, which
and saves time and effort. Entertainment measures reflect includes a group of students wearing casual clothing, along
an ‘‘enjoyable shopping experience’’ in a store. The with a store logo with the fictitious store name, College Life
merchandise quality variable involved quality of fabric, as shown in Fig. 2. The non-thematic storefront design
design and construction of the clothing item. consisted of a picture of merchandise, directories of the
Certain factors related to store image might obscure the merchandise selection and a store logo with the fictitious
effects of the store atmosphere variables we wish to store name, College Life, as shown in Fig. 3.

Please cite this article as: Oh, J., et al., Effects of design factors on store image and expectation of merchandise quality in web-based stores. Journal of
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Fig. 2. Thematic storefront design.

Fig. 3. Non-thematic storefront design.

In order to develop text and pictorial information 3.3. Subjects and procedure
displays, five apparel design experts and 12 college students
were questioned. Five apparel design experts responded to The measurement and stimuli were refined from a pilot
open-ended questions, asking them to describe three study with 14 subjects. The subjects for this study consisted
pictures of colors (khaki, olive green, and black), one of students enrolled in nine courses at a university.
fabric picture (100% cotton), four construction pictures University-aged students are a major consumer group in
(belt loop and side pocket, fly front, waistband closure, and the online market (Twenty Trends for 2010: Retailing in an
back pocket), and one silhouette picture. Twelve college age of uncertainty, 2003) and are members of the Y
students, who were not majoring in apparel design or generation that were born between 1977 and 1994
merchandising were shown these nine pictures and were (Generation Y and future of mall retailing, 2002). Nine
asked to describe them. With this procedure, apparel instructors were contacted to participate, students volun-
construction terms, which were provided by the five design tarily participated in the experiment, and each subject
experts, were changed into text that consumers could (student) was randomly assigned to one of four treatments
understand as shown in Fig. 4. by the factorial between-subject design.

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Fig. 4. Methods of information display.

We did not use a random sample to select the courses task (plan to purchase a pair of khaki pants for campus
from which we drew our student population; we used a wear) and procedure (how to navigate through the web-
convenience sample of courses because we needed class- based store). In order to control the social surroundings,
rooms that were already equipped with computers. We the subjects were instructed to put themselves in the
selected courses that were taught in the business college customers’ place and not to talk with anyone during the
because we felt these students were using computers in their experiment. After experiencing the assigned store, subjects
classes and that they were possibly more comfortable with were asked to complete a self-administrated questionnaire
online shopping. Therefore these students did not represent that contained the study measurement.
a cross section of students based on college major.
However, according to the University statistics, the 4. Results and discussion
students in this study were representative of the age and
gender of students in this University. 4.1. Factor analysis and reliability test for measurements
The web-based store shopping experience was simulated,
using computers in a computer lab. Subjects were Principal axis factor analysis with a promax rotation was
instructed to read an instructional page that included the used to reduce the number of dependent variable items. To

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determine whether factor analysis was appropriate for used. These measurements were deemed appropriate
these items, the Kaiser–Meyer–Olin (KMO) measure of because the KMO was .866 and the Barlett’s test of
sampling adequacy and Bartlett’s test of Sphericity were sphericity was significant (p ¼ .000).
Results showed that four factors contributed 72% of the
total variance. All factors had eigen values greater than
1.00 and Cronbach’s a values ranging from .70 to .95,
Table 1
Factor analysis which are acceptable (Nunnally, 1978). Table 1 shows the
measurements that loaded on each factor, the total
Factors and items Eigenvalue Factor a variance, and the reliability measures. Factors were labeled
loadings (1) merchandise quality, (2) entertainment, (3) convenience,
Factor 1: merchandise quality 3.302 .90 and (4) safety.
Pants offered at this store are of .84
high quality in its construction
Pants offered at this store are of .83 4.2. Description of the sample
high quality
Pants offered at this store are of .78 A total of 331 students participated in the experiment.
high quality in its design According to Goldsmith (2002) student consumers repre-
Pants offered at this store are .66
sent the younger end of the market for on-line buying and
made of high quality fabric
Pants offered at this store would .65 are an appropriate sample in marketing related studies.
meet my expectations Twenty-four of the questionnaires were incomplete and
Source: Jarvenpaa and Todd deemed unusable, and thus were dropped from data
(1997), Baker et al. (1994), analysis. This resulted in a final sample of 307 respondents.
Researcher
Approximately 60 percent of the respondents were female.
Measured by 7-point Likert Scale
The majority of the sample was between 20 and 22 years
Factor 2: entertainment 2.398 .95 old. Slightly more than one-half of the respondents
Shopping at this store allows me .82
(54.7%) were majoring in Human Sciences, with the
to have fun
Shopping at this store is very .78 remaining respondents majoring in Business.
appealing
Shopping at this store would be an .78
enjoyable experience
4.3. The effect of thematic/non-thematic storefront designs
and picture-based/text-based information displays on store
Factor 3: convenience 2.260 .84 .85 image
This store makes shopping easy .78
This store saves my shopping time .66
This store makes me reduce my A 2  2 ANOVA was performed to test Hypothesis 1, 2
shopping effort and 3 as shown in Table 2. To test the relationships
Factor 4: safety 1.470
between variables the interaction of the independent
I feel safe in their transactions .74 .70 variables (storefront design and methods of information
with this store display) on the dependent variables (safety, convenience,
The process of shopping at this .59 and entertainment) was analyzed. Once this analysis was
store jeopardizes my privacya conducted and the relationships were insignificant then the
Source: Forsythe (1991)
Measured by 7-point Likert Scale
main effect was analyzed. The general results fully
supported Hypothesis 1 and 3 and partially supported
a
Reverse coding. Hypothesis 2.

Table 2
The effect of design factors on store images

Source Store images

Safety (H1) Convenience (H2) Entertainment (H3)

df F-value df F-value df F-value

Model 3 12.69*** 3 4.76** 3 19.62***

Main effects
Storefront design (SD) 1 9.41** 1 3.82 1 10.24**
Information display (ID) 1 13.06*** 1 6.60* 1 36.42**
2-way interaction 1 12.39*** 1 2.61 1 3.90*
SD  ID

*po.05; **po.01; ***po.001.

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There was a significant interaction of storefront design Table 3

(SD) and method of information display (ID) on safety [F The effect of design factors on consumers’ expectation of merchandise
quality
(1, 248) ¼ 12.39, p ¼ .000] and entertainment [F (1, 286) ¼
3.90, p ¼ .049]. When a store provided picture-based infor- Source Consumers’ expectation of
mation, the thematic storefront design was more effective merchandise quality (H4)
for a safe (picture-based information: thematic M ¼ 10.23,
df F-value
non-thematic M ¼ 7.75; text-based information: thematic
M ¼ 7.76, non-thematic M ¼ 7.93) and entertaining store Model 3 24.87***
image (picture-based information: thematic M ¼ 13.44, Main effects
non-thematic M ¼ 12.75; text-based information: thematic Storefront design (SD) 1 .69
Information display (ID) 1 70.20***
M ¼ 11.16, non-thematic M ¼ 8.24).
The interaction of the two design factors on convenience 2-way interaction 1 .11
was not significant [F (1, 293) ¼ 2.61, p ¼ .108]. In the SD  ID
main effect of the two design factors on convenience, the ***po.001.
influence of the method of information display was
significant [F (1, 293) ¼ 6.60, p ¼ .011], while the influence
of the storefront design was not significant [F (1, 293) ¼ display showed a significant result [F (1, 242) ¼ 70.22,
3.82, p ¼ .052]. When a store provided picture-based p ¼ .000]. The means for consumers’ expectation of
information, consumers perceived a more convenient store merchandise quality indicated that the higher scores were
image than a store that provided only text-based informa- with picture-based information (a thematic storefront
tion (picture-based information: M ¼ 15.55; text-based design: M ¼ 22.13; A non-thematic storefront design:
information: M ¼ 14.15). M ¼ 21.45) rather than with text-based information (a
The overall results were consistent with study results in thematic storefront design: M ¼ 17.14; a non-thematic
brick-and-mortar and web-based retail stores. Some storefront design: M ¼ 17.13).
researchers have suggested that a thematic and picture- This result is consistent with Mazurasky and Jacoby’s
based store design creates a safe and entertaining shopping (1985) study that compared the effects of two display
environment (Gutman and Alden, 1985; Marsh, 1999; methods, one with pictures and one with text in a brick-
Mazurasky and Jacoby, 1985). Previous research also and-mortar store. The previous research found that
suggested that design factors in stores increase consumers’ consumers perceived high-quality merchandise in a store
perceptions of favorable and convenient shopping in brick- using displays and signage that were designed with
and-mortar contexts (Eckman et al., 1990; Gutman and pictures. The result of this study supports the effectiveness
Alden, 1985; Marsh, 1999; Mazurasky and Jacoby, 1985). of picture-based display in a web-based environment. Also,
The results also indicate that convenience in web-based this result is supported by a study that found that visual
stores is related only to the method of information display, information about clothing (e.g., style, color, fabric)
not to storefront designs. This finding provides important encourages consumers to try on the clothing items and to
information to web-store designers. Sophisticated store- make a purchase (Eckman et al., 1990). However, the effect
front designs may initially attract a consumer, however it of the storefront design on consumers’ expectations of
has been found that at the same time it distracts consumers merchandise quality was not statistically significant.
(Geissler, 2001; Jarvenpaa and Todd, 1997). Rather, it appears consumers’ expectation of merchandise
quality is formed through picture-based information
4.4. The effect of thematic/non-thematic storefront designs displays for web-based environments.
and picture-based/text-based information displays on
consumers’ expectation of merchandise quality 4.5. The mediating effect of store image between store
atmosphere and consumers’ expectation of merchandise
In order to study the relationship between the two design quality
factors of the store atmosphere (storefront design and
method of information display) and consumers’ expecta- Using a 2  2 ANOVA, the mediating effect of store
tion of merchandise quality, Hypothesis 4 was tested using images between store atmosphere (storefront design and
a 2  2 ANOVA as shown in Table 3. The interaction of method of information display) and consumers’ expecta-
the two design factors and main effects of each design tion of merchandise quality was tested (refer to Table 3).
factor was investigated and the results partially supported Procedures suggested by Baron and Kenny (1986) and
Hypothesis 4. Hastak and Olson (1989) were followed to assess whether
The interaction of storefront design (SD) and method of store images mediated the effect of store atmosphere on
information display (ID) had no significant effect on con- merchandise quality (Table 4).
sumers’ expectations of merchandise quality [F (1, 242) ¼ For the first step of the procedure, the relationship
.11, p ¼ .739]. In the main effect on consumers’ expecta- between store atmosphere and three measures of store
tions of merchandise quality, only the method of information image were analyzed as shown in Table 2. The next

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procedure presented the effect of the store atmosphere on store image and the perception of merchandise quality,
the consumers’ expectation of merchandise quality. The which is consistent with previous studies (Heisey, 1990;
results indicated that the effect of the storefront design was Olshavsky, 1985) that regarded store image as an
not significant, and only the method of information display antecedent of quality.
significantly influenced consumers’ expectation of mer-
chandise quality [F (1, 202) ¼ 35.75, p ¼ .000]. In the last 5. Conclusions and implications
procedure, the effects of the three measures of store image
on consumers’ expectation of merchandise quality were A supposition of this study is that store atmosphere
eliminated when the mediators were treated as covariates. impacts a store’s image and consumers’ expectation of
Significant covariate effects of a convenient [F (1, 202) ¼ merchandise quality in a store, whether in a web-based
7.46, p ¼ .007] and an entertaining [F (1, 202) ¼ 18.19, store, or a brick-and-mortar store. This research adopted a
p ¼ .000] store image were found for consumers’ expecta- S–O–R model and investigated two design factors (store-
tion of merchandise quality. The safety store image was not front design and method of information display) in the
significantly involved in the relationship. Finally, regres- store atmosphere of a web environment and compared the
sion analysis confirmed the effects of store image on effectiveness of two strategies of each storefront design
consumers’ expectations of merchandise quality as shown (thematic/non-thematic) and method of information dis-
in Table 5. The result showed that as the favorability of the play (picture-based/text-based) in relation to store image
store image increases, consumers’ expectations of merchan- and consumers’ expectations of merchandise quality. This
dise quality are enhanced (entertainment: b ¼ .42, t ¼ 5.71, research design is based on five hypotheses drawn on brick-
p ¼ .000; convenience: b ¼ .15, t ¼ 2.36, p ¼ .019). and-mortar and web-based contexts.
The results partially supported Hypothesis 5. Generally, This empirical study generally suggested that a thematic
the results of this study show that only methods of and picture-based store environment is a more effective
information display, not storefront design, affect consu- way to develop a safe and entertaining store image than a
mers’ expectation of merchandise quality when mediated non-thematic and text-based store environment for web-
by an entertaining and a convenient store image. Safety did based stores. Also, this research indicated that the method
not contribute to the mediating role of store image. of information display was a more effective way of
Additionally, this result supported the relationship between delivering a store image that was convenient for consumers
to use and that fulfilled the consumers’ expectation of
higher merchandise quality.
Table 4 Consumers perceive that they will save time/effort and
Factorial analysis of covariance for college students’ expectation of obtain higher-quality merchandise through the use of
merchandise quality information displays for web-based stores (especially
Source SS DF MS F-value picture-based information displays) with no preference to
the storefront designs. In addition, consumers perceive a
Model 3220.17 6 536.70 29.31*** safe and entertaining web-based store image that reflects
Covariate higher-quality merchandise when the store has a thematic
Safety 25.09 1 25.09 1.37 storefront design and picture-based information displays.
Convenience 136.57 1 136.57 7.46** Finally, consumers feel that shopping at a web-based store is
Entertainment 333.20 1 333.20 18.19***
more convenient and they expect higher-quality merchan-
Main effect dise with pictorial elements in the information displays.
Storefront Design (SD) 2.79 1 2.79 .15 Our goal was to examine two design factors of store
Information Display (ID) 654.68 1 654.68 35.75***
atmosphere in relation to store image and consumers’
2-way interaction expectation of merchandise quality for web-based stores.
SD  ID 3.16 1 3.11 These findings provide researchers with a better under-
Error 3699.43 202 18.31 standing of consumers’ behavior toward web-based stores.
This research incorporated the concept of the S–O–R
**po.01; ***po.001.
framework to understand consumers’ perceptions of store
images and consumers’ expectation of merchandise quality.
Table 5 This supports the findings of many researchers who have
Regression analysis: merchandise quality with store images found that store image and consumers’ expectations affect
Source B SE B b t
consumers’ purchasing intentions. The Stimulus was
represented by design factors that were atmospheric
Constant 13.51 1.25 10.77*** variables. Consumers’ perceptions of store image repre-
Entertainment .51 .09 .42 5.71*** sented the Organism. Finally the Response was represented
Convenience .28 .12 .15 2.36*
by consumers’ expectations of merchandise quality.
Note: R2 ¼ .37, adjusted R2 ¼ .37 (F ¼ 39.717, p ¼ .000). Stimulus is conceptualized as an influence that arouses
*po.05; ***po.001. an individual’s mind, and is the factor that affects the

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Organism’s stage, represented by the affective and cogni- (1) an experimental study on web-based stores where
tive states. Also, Organism is moderated by the relation- respondents do not know that the store is fictitious; and (2)
ship between the Stimulus and an individual’s response. a case study using existing web-based stores.
Atmospheric variables affect consumers’ perceptions of Store image and consumer expectation research are
store image in web-based stores. The affective and found to affect consumers’ purchasing intentions. This
cognitive states (consumers’ perception of store image) model should be extended to include consumers’ purchas-
affect consumers’ responses (consumers’ expectation of ing decision processes as well. Also the model should to be
merchandise quality) to web-based stores. These results tested with other aspects of store atmosphere, including
imply that retailers of web-based stores need to develop a ambient factors and situational characteristics. Another
store atmosphere, which will pay off in terms of consumers’ area of interest is developing the sub-dimensions of store
perception of a safe, convenient and entertaining store image for web-based stores.
image with a higher level of merchandise quality. We found
that web-based retailers should present their store image
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Please cite this article as: Oh, J., et al., Effects of design factors on store image and expectation of merchandise quality in web-based stores. Journal of
Retailing and Consumer Services (2007), doi:10.1016/j.jretconser.2007.03.004