Running head: BACKGROUND MUSIC AND PURCHASING BEHAVIOR

What is the Effect of Background Music on Purchasing Behavior among Customers? Kellen Sanger HOD 1700: Systematic Inquiry Dr. Van Schaack April 3, 2013

BACKGROUND MUSIC AND PURCHASING BEHAVIOR Abstract Background music significantly contributes to a store or businesss shopping environment. The shopping environment in turn adds to a larger concept, a customers shopping experience. This experience influences the customers behavior and the purchasing decisions the customer chooses to make. Impulse purchases along with time spent in the store by customers have been widely examined by marketing and businesses researchers. Specifically, many studies have assessed the effect of background music, a large element making up the shopping environment, on purchasing behavior. Different characteristics of played background music such as genre, tempo, and typical audience tend to influence the purchasing behavior of customers in different ways. Studies have shown background music compatible with the stores environment is associated with more time spent in a store and more money spent in that store. Businesses such as restaurants, wine stores, and bars consider playing slow tempo, classical, and drinking music

respectively in order to stimulate and influence customers in order to increase margins. Although a strong correlation exists between compatible background music in stores and purchasing behavior, a cause-and-effect relationship cannot be confirmed due to an inability to control for exogenous factors in much of the research.

BACKGROUND MUSIC AND PURCHASING BEHAVIOR What is the Effect of Background Music on Purchasing Behavior among Customers? Background musics ability to influence the attitudes and behaviors of the people listening has resulted in much discussion on musics value in purchasing situations (Milliman, 1986). The field of marketing has long explored the concept of how the total product includes not only the product itself, but also elements such as the services, images, and atmosphere associated with that product (Kotler, 1973). An easily controlled and simply implemented variable that forms the total product is the music being played while a customer makes a purchasing decision. Early research pointed to conclusions that changing the stimulation or arousal gained from listening to different music affects a subjects choice behavior when selecting between two items (Gorn, 1982). The marketing industry has heavily focused on studying the power of music in altering customers purchasing decisions and behavior as other studies have examined time spent shopping, impulse purchases, store traffic, and higher sales in relationship to different types of background music being played (Matilla & Wirtz, 2001; Milliman, 1986; Yalch & Spangenberg, 1990). In addition, the presence of companies such as Musak, AEI, Mood Media, and DMX dedicated to providing restaurants, supermarkets, retail

stores, and other businesses with different varieties of music for different business environments indicates a substantial significance placed on the effects of music compatibility on shopper behavior (Herrington & Capella, 1994). This literature review aims to examine the relationship between background music in stores and the purchasing behavior of shoppers in those stores. Furthermore, the review will determine if a causal relationship exists. Background Music Compatibility Background music is a highly manipulatable element of the in-store shopping experience (Bruner, 1990). Background music is simply the music played by a business that the customer

BACKGROUND MUSIC AND PURCHASING BEHAVIOR listens to during their time in that place of business (Milliman, 1986). Businesses traditionally use loud-speakers or placed-speakers in their store to play background music from a radio, CD,

audio file, internet, or satellite source, oftentimes by a company or service dedicated to providing in-store music content (Luh, 1996). While background music consists of several, variable components including time, pitch, and texture, this review will assess background music based on the level in which the music is compatible with the business environment (Bruner, 1990). Matilla & Wirtz (2008) define this matching of music to the environment as the musics ability to stimulate a person to their desired and expected level of stimulation. The musics compatibility depends on the fittingness of the selected background musics genre, typical audience, and tempo to the environment customers are in as they shop. Bruner (1990) defines this idea as the preferential dimension of music composition, or the degree to which a shopper likes the music. For example, compatible background music includes scenarios in which the shopper will likely prefer the music played, such as classical music in wine stores, slow-paced music in grocery stores, age-relevant music in different departments of retail stores, classical music in banks, and drinking music in bars (Yalch & Spangenberg, 1990; Dub, Chebat, & Morrin, 1995; Areni & Kim, 1993; Jacob, 2006). These scenarios employ fitting background music in order to stimulate patrons to their desired level. Background music compatibility therefore when people are stimulated to their expected level of stimulation when entering a shopping environment (Matilla & Wirtz, 2008). Factors Associated with Purchasing Behavior of Shoppers The purchasing behavior of shoppers includes both the time spent by shoppers in the store or business and the unplanned spending of these shoppers (Donovan, Rossiter, Marcoolyn, & Nesdale, 1994). An important aspect of purchasing behavior is that this variable is not the

BACKGROUND MUSIC AND PURCHASING BEHAVIOR attitudes and intentions of the shoppers, but only the purchasing behavior of the shoppers. Donovan et al. (1994) noted that while the purchasing behavior of the shoppers is likely a result of the attitudes and intentions of the shoppers, other studies err in measuring these emotional variables instead of the behavioral measures of impulse spending and extra time spent in the store. Impulse, or unplanned, spending is characterized by the purchase of a product when the brand, product, or need for the product was not previously determined (Kollat & Willett, 1967).

In the context of this literature review, purchasing behavior is restricted to the in-store actions of impulse spending and time spent in the store, excluding all previous behavior outside of the store (Nelson, 1970). Kollat and Willett (1967) also found that unplanned spending is influenced by transaction size, the shopper themselves, and exposure to in-store stimuli. The extra time spent in the store by shoppers is also influenced by these factors. The Effect of Background Music on Purchasing Behavior of Shoppers An empirical study by Milliman (1986) examined the effect of background music on restaurant patrons. Milliman (1982) previously found that slow paced background music tempo changed customer behavior and a stated purpose of the new study was to test whether these results could be extended to a completely different environment (Milliman, 1986). The studys sample consisted of 1,392 patrons that randomly entered a Texas restaurant over the course of 16 days. Milliman (1986) executed a research design in which two treatments, slow and fast tempo music, were played at the restaurant on randomly assigned and alternating Fridays and Saturdays over eight consecutive weekends. The dependent variable of the study was the behavior of restaurant patrons. Behavior was clearly defined and measured as the time it took customers to finish their meals, dollar amount spent on food and bar purchases, and estimated gross margin of the restaurant over the experimental period (Milliman, 1986). This combined with the consistent

BACKGROUND MUSIC AND PURCHASING BEHAVIOR measurement techniques of constant music volume, random assignment of treatment, and random sampling of patrons to greatly increase the reliability of the study. After the eight week period, Milliman (1986) found that the fast music treatment resulted in 11 less minutes spent dining at the .01 significance level, $8.85 less spent by customers on drinks at the .05 significance level, an insignificant change in dollars spent by customers on food, and a drop in gross margin from $55.82 with slow music treatment to $48.62 with fast music treatment at the .05 significance level. The results of the experiment regarding customer behavior under the effect of slow tempo music treatment in purchasing drinks and spending more time dining were

not only statistically significant but also practically significant in terms of the restaurants ability to increase margins with this treatment. An additional strength of the study on the effect of background music on restaurant patrons behavior was a thorough review of previous literature along with the testing of a prior studys applicability (Milliman, 1986). This presented the study in the context of other findings and informed the reader of current understandings on the topic. Another strength of the study was its ability to defeat almost all threats to internal validity through the use of a clear research design with well-defined variables and treatment. The one threat to internal validity that existed, however, was that while sampling was random via guests walking into a restaurant, results were only recorded on weekends and during the time of year in which the experiment was conducted. Thus, the possibility that weekend guests during this time of year respond differently than all guests to the treatments existed. Another weakness of the study stems from threats to external validity due to the extremely specific nature of the situation, being one Texas restaurant. For these reasons, the results of slow tempo music increasing gross margins cannot be applied to all restaurants as circumstances may differ. However, Milliman (1986) never made this inference

BACKGROUND MUSIC AND PURCHASING BEHAVIOR and instead concluded background music can significantly affect the behavior of restaurant patrons. No causal relationship is implied. Nonetheless, the study provides an example of a reliable and practically significant experiment in which playing slow tempo background music compatible with the restaurants relaxing approach atmosphere influenced the purchasing behavior of the patrons (Milliman, 1986). Areni and Kim (1993) conducted a field study to test the influence of background music on shopping behavior in a wine store by examining the differences of customer actions when classical versus Top-Forty music was played in the background. An observer recorded the dependent variables: the purchasing behavior, the consumption behavior, and the information search of customers that randomly entered a wine store (Areni & Kim, 1993). Purchasing behavior included measurements of the number and price of items purchased and information search included measurements on the amount of time customers spent looking at items. The background music type was randomly assigned to successive Fridays and Saturdays over the

sixteen week period of the study (Areni & Kim, 1993). Before conducting the experiment, Areni and Kim (1993) analyzed previous studies related to wine tasting and classical music and came to the conclusion that wine tasting and consumption are sophisticated, prestigious, complicated, and even snobbish behaviors and that the classical genre of music appears to be well suited for complimenting these activities. The independent variables therefore consisted of the compatible background music choice of the classical genre versus an alternative background music of the Top Forty genre. The study yielded findings that while classical music played, the amount of money shoppers spent increased on average $2.87 at a .02 level (Areni & Kim, 1993). While time spent shopping increased by an average of 2.02 minutes, these results were not statistically

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significant. Areni and Kim (1993) concluded that the compatible classical background music led customers to purchase more expensive items in the wine store. The strengths of the study on the influence of background music on shopping behavior include the clarity of the research question and simplistic set-up of the research design (Areni & Kim, 1993). The question was apparent due to a thorough review of previous literature on the effect of music on behavior and a synthesis of outside concepts regarding wine and classical music. In addition, variables were well defined and broken down based on associated factors. These elements translate to increased reliability of the study as well as provide results that even less educated people can understand. Other notable strengths include the researchers controlling for coincidental events such as holidays and utilizing observers blind to the conditions of the study in order to reduce threats to internal validity (Areni & Kim, 1993). An initial weakness of the study was the presence of selection bias (Areni & Kim, 1993). Areni and Kim (1993) address this issue by stating, It is possible that mean differences in information search behavior, purchase intentions, etc. existed among the experimental groups quite independent of the actual treatments, because subjects were observed based on their walking into a wine store on a given day. This represents a threat to internal validity. In addition, another threat to internal validity concerns the [studys] inability to control for exogenous factors that might have influenced the amount of store traffic on a given night (Areni & Kim, 1993). Additional limitations include a lack of multiple observers and lack of a no music control group. Overall, however, the weaknesses of the study did not render results insignificant as the researchers and reviewers addressed and were fully aware the implications. Therefore, the conclusion that classical music influences purchasing behavior by leading to more expensive purchases based on the compatibility of the music supports the notion that music must be

BACKGROUND MUSIC AND PURCHASING BEHAVIOR appropriate for the context in which it is employed in order to enhance persuasion as found by previous research (Areni & Kim, 1993). A recent study conducted by Jacob (2006) on the effect of congruent background music

on purchasing behavior confirmed previous research regarding the topic in a commercial setting. Jacob (2006) found that drinking music, or congruent background music, played at a bar versus Top-Forty background music increased the time and money spent at the bar by statistically significant levels. In addition, the study revealed a significant positive correlation of r=.56 between the tested variables (Jacob, 2006). This study followed-up on previous research over the past two decades and confirmed previous findings on background music congruent with the business environment affecting the purchasing behavior of customers. Jacob (2006), Areni and Kim (1993), and Milliman (1986) present similar evidence pointing to background music, and the compatibility of that music, affecting purchasing behavior in terms of money and time spent in the store. In a recent and related study, Matilla and Wirtz (2008) tested the role of environmental stimulation and social factors on impulse purchasing. While Matilla and Wirtz (2008) used employee assistance and perceived crowding instead of background music, they found that arousal in comparison to consumers desired level of stimulation influenced impulse purchasing; not the level of arousal. Therefore, any environmental stimulation, including fast tempo and high volume music, must be considered in terms of its compatibility with the store environment (Matilla & Wirtz, 2008). This study not only supports the arguments that environmental factors such as background music affect purchasing behavior but also emphasizes the importance of fitting the music to the business or store environment.

BACKGROUND MUSIC AND PURCHASING BEHAVIOR Conclusion

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After a comprehensive review of the literature regarding the effect of background music on purchasing behavior among shoppers, it can be determined that a strong correlation exists between the variables. Although numerous studies indicate a likely causal relationship between background music and purchasing behavior, shortcomings associated with threats to internal validity make it impossible to insure that causality exists. Studies by Milliman (1986), Areni and Kim (1993), and Jacob (2006) all concluded that the presence of compatible background music had some influence on purchasing behavior in terms of the amount of money and time spent in the store. Furthermore, the results of all the studies indicated an increase in time and money spent in the store when the background music fit the business, product, or expected environment in terms of tempo, genre, and typical audience. The consistency of these results throughout the reviewed literature and across various studies leads to the conclusion that a strong correlation between compatible background music and purchasing behavior of customers exists. A causeand-effect relationship cannot be determined because of the numerous possible influences on purchasing behavior in the store, restaurant, or business environment. The inability of the research to control for variation in environmental, sampling, and situational factors makes a conclusion of causality impossible.

BACKGROUND MUSIC AND PURCHASING BEHAVIOR References Areni, C. S., & Kim, D. (1993). The influence of background music on shopping behavior: Classical versus top-forty music in a wine store. Advances in Consumer Research, 20, 336-340. Bruner, G. C. (1990). Music, mood, and marketing. Journal of Marketing, 54, 94-104. Donovan, R. J., Rossiter, J. R., Marcoolyn, G., & Nesdale, A. (1994). Store atmosphere and purchasing behavior. Journal of Retailing, 70, 283-294. Dub, L., Chebat, J. C., & Morin, S. (1995). The effects of background music on consumers' desire to affiliate in buyer-seller interactions. Psychology and Marketing, 12, 305-319. Gorn, G. J. (1982). The effects of music in advertising on choice behavior: A classical conditioning approach. Journal of Marketing, 46, 94-101. Herrington, J. D., & Capella, L. M. (1994). Effects of music in service environments: A field study. Journal of Services Marketing, 10, 26-41. Jacob, C. (2006). Styles of background music and consumption in a bar: An empirical evaluation. International Journal of Hospitality Management, 25, 716-720. Kotler, P. (1973). Atmospherics as a marketing tool. Journal of Retailing, 49, 48-64. Kollat, D. T., & Willett, R. P. (1967). Customer impulse purchasing behavior. Journal of Marketing Research, 4, 21-31. Luh, P. H. (1996). Pay or don't play: Background music and the small business exemption of copyright law. Loyola of Los Angeles Entertainment Law Journal, 16, 711-741. Matilla, A. S., & Wirtz, J. (2001). Congruency of scent and music as a driver of in-store evaluations and behavior. Journal of Retailing, 77, 273-289.

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Matilla, A. S., & Wirtz, J. (2008). The role of store environmental stimulation and social factors on impulse purchasing. Journal of Services Marketing, 22, 562-567. Milliman, R. E. (1982). Using background music to affect the behavior of supermarket shoppers. Journal of Marketing, 46, 86-91. Milliman, R. E. (1986). The influence of background music on the behavior of restaurant patrons. Journal of Consumer Research, 13, 286-289. Nelson, P. (1970). Information and consumer behavior. Journal of Political Economy, 78, 311329. Yalch, R., & Spangenberg, E. (1990). Effects of store music on shopping behavior. Journal of Consumer Marketing, 7, 55-63.