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Color and shopping intentions: The intervening effect of price fairness and
perceived affect

Article  in  Journal of Business Research · July 2003

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Journal of Business Research 56 (2003) 541 – 551

Color and shopping intentions:


The intervening effect of price fairness and perceived affect$
Barry J. Babina,*, David M. Hardestyb, Tracy A. Suterc
a
College of Business Administration, 306 JGH, University of Southern Mississippi, Hattiesburg, MS 39406-5091, USA
b
School of Business Administration, 523D Jenkins Building, University of Miami, Coral Gables, FL 33124-6554, USA
c
College of Business Administration, 370 North Hall, Oklahoma State University, Tulsa, OK 74106-0700, USA

Abstract

How do consumers react to various color, lighting, and price point combinations? The results described in this article depict varying
consumer reactions with the three-way congruence between a store’s environmental cues, consumers’ cognitive categories representing
known store types, and salient situational shopping motivations. For fashion-oriented stores, blue interiors are associated with more favorable
evaluations, marginally greater excitement, higher store patronage intentions, and higher purchase intentions than are orange interiors.
However, the results change substantially when the effect of lighting in combination with color is considered. The use of soft lights with an
orange interior generally nullifies the ill effects of orange and produces the highest level of perceived price fairness while controlling for
price. Additionally, the results suggest that the effects of environmental and price cues are mediated by consumers’ cognitive and affective
associations.
D 2003 Elsevier Science Inc. All rights reserved.

Keywords: Atmosphere; Color; Retail patronage; Shopping emotion

1. Introduction examines how color perceptions, alone and in combination


with store lighting, influence patronage intentions. Addi-
Consumer reactions to retail concepts are shaped largely tionally, the role of price is considered since price helps
by atmospherics created by altering key in-store elements establish the congruence of a store environment with known
(Kotler, 1974). Designers can manipulate cues such as store types (Baker et al., 1994). A conceptual case is
climate, music, scent, employee appearance, etc., in an presented and empirical results support that these effects
effort to stimulate positive consumer reactions (Baker are experienced indirectly through affective and cognitive
et al., 1994; Darden and Babin, 1994; Spangenberg et al., consequences of environmental changes.
1996). Changes in physical store characteristics can alter The hope is to shed light on several important contribu-
consumers’ mood, perceptions, shopping time, and satisfac- tions. First, the research addresses the importance of color
tion with a retailer (Babin and Darden, 1996; Dawson et al., and lighting in retail atmospherics and shopping reactions.
1990; Hui et al., 1997), among other things. Second, the research furthers evidence suggesting the
Surprisingly little research addresses how a store’s pre- important role of environmental affect in mediating relation-
dominant color affects consumer reactions (Crowley, 1993). ships between store characteristics and consumer reactions.
This paper presents research addressing this topic. Follow- Third, the study design furthers our knowledge of how
ing from previous research describing how lighting and consumers cognitively store and respond to color, lights,
background music alter a consumer’s perceptions and reac- and retail pricing. Thus, the paper has both practical and
tions to a store design (Baker et al., 1992), this research theoretical potential.

$
This manuscript was completed while the second and third authors 2. Conceptual background
were on faculty at the University of Southern Mississippi.
* Corresponding author. Tel.: +1-601-266-4627; fax: +1-601-266-
4630. Atmospherics research falls generally into environmental
E-mail address: barry.babin@usm.edu (B.J. Babin). psychology (Mehrabian and Russell, 1974). As such, atmo-

0148-2963/03/$ – see front matter D 2003 Elsevier Science Inc. All rights reserved.
doi:10.1016/S0148-2963(01)00246-6
542 B.J. Babin et al. / Journal of Business Research 56 (2003) 541–551

spheric models generally make stimulus – organism – res- furniture store along different wavelengths at matching
ponse (S –O – R) type predictions. Store cues cause specific points on the U (e.g., violet – red). Subjects in that experi-
cognitive and affective reactions, and these reactions modify ment did not display a linear trend in their ratings of
shopping behavior (see also Bitner, 1992; Wakefield and activation-related affect. Thus, store colors matching vertical
Baker, 1998). Likewise, the framework is consistent with location on the U may show little or no difference of affect.
the consumption – emotion – value paradigm (Holbrook,
1986) in that it emphasizes the important, intervening role 2.2. Congruent cues and consumer categorization
played by affective reactions.
Retailing research has focused predominantly on color in
2.1. Color isolation of other factors. However, consumers do not pro-
cess environmental characteristics piecemeal (Ward et al.,
Color’s effects on human performance and cognitive 1992). Rather, combinations of ambient characteristics affect
interpretation provide important evidence suggesting poten- how consumers react to a store concept. A store described as
tial consumer reactions (e.g., Jacobs and Suess, 1975; having a combination of bright, fluorescent lights (soft,
Wexner, 1954). Crowley (1993) reviews this literature and incandescent lights) and popular (classical) background
concludes that color influences both consumers’ evaluation- music causes consumer reactions consistent with a discount
related affect (affective tone) and activation-related affect (prestige) image (Baker et al., 1994). Therefore, the possibil-
(arousal). A color’s hue or gradation is determined by its ity exists that color may interact with other ambient charac-
wavelength. Short wavelengths are associated with ‘cool’ teristics and may alter consumer reactions to a store concept.
colors with violet being most extreme followed by blue. Like other categories, consumers’ shopping experiences
Long wavelengths are associated with ‘warm’ colors with create cognitive categories representing store types (Ander-
red being most extreme followed by orange. A consistent son and Klatzky, 1987; Babin et al., 1995). Certain combi-
finding in this literature is that short (long) wavelength nations of lighting and color fit better (are assimilated more
colors are preferred (not preferred) leading to a linear easily) into specific categories. The active category makes
association between affective tone and wavelength. So, blue category consistent information salient — available for use
environments generally evoke better feelings than do orange in decision making (Holland et al., 1989). Thus, a consumer
environments (Valdez and Mehrabian, 1994). seldom considers requesting the sommelier (wine steward)
Retailing research is generally consistent with these if seated in a brightly lit, red restaurant. However, the same
results. Experimental research suggests that cool-colored consumer might request a paper napkin in such an envir-
store environments are preferred over warm-colored store onment. Additionally, these cognitive processes help deter-
environments (Bellizi et al., 1983; Crowley, 1993). In mine one’s feelings and evaluations (Babin et al., 1995). A
addition, experimental research using a hypothetical tele- concept typified by specific environmental cues can cause a
vision purchase suggests that a blue background can favorable or unfavorable reaction depending on its congru-
decrease the likelihood of postponing purchase compared ence with specific shopping motivations.
to a red background (Bellizi and Hite, 1992). Thus, it is Thus, as a combination of classical music and soft lights
generally expected that violet/blue interiors will produce leads consumers to expect higher prices (Baker et al., 1994),
higher levels of positive affective tone and increased pur- lights may moderate color’s effect. Taken separately,
chase intentions than will red/orange interiors. research suggests that bright fluorescent (soft) lights and
Color’s influence on activation-related affect is not as warm (cool) colors are more consistent with a discount
straightforward. Empirical results suggest that a U-shaped (prestige) store concept (Baker et al., 1992; Bellizi and Hite,
relationship exists such that relatively extreme wavelengths 1992; Schlosser, 1998).
evoke greater arousal (Wilson, 1966). Red/orange and The current study focuses on women’s fashion retailing
violet/blue, being at opposite ends of the U, evoke similar and thus involves quite different motivations. Given fash-
levels of arousal. One explanation for this result is that ion’s close relationship with self-image (Sproles, 1979),
responses to color are more learned or instinctive rather than clothing appeals strongly to one’s prestige sensitivity (Lich-
physiological. More extreme wavelengths are speculated as tenstein et al., 1993). Schlosser (1998) found socially
being more associated with danger and therefore, they evoke oriented products like clothing were evaluated more favor-
greater activation (Wilson, 1966). ably in a store described with a prestige atmosphere than
Although some research suggests red environments as they were in a store described with a discount atmosphere.
being more arousing than blue (Valdez and Mehrabian, In contrast, ratings of utilitarian products (e.g., vacuum
1994), results from retail studies of activation-related emo- cleaner) were not influenced to the same degree by the
tions such as excitement are more mixed than for affective store categorization. In part, this congruence issue explains
tone. However, previous research may not have taken into why many consumers patronize discounters like Wal-mart
account the relative location of each color on the U-shaped for many goods, but do not consider it a desirable place to
wavelength –activation curve. Crowley (1993) controlled for shop for their own clothes. Thus, to the extent that orange
this factor by manipulating the colors of a hypothetical and bright lights are most associated with a discount store
B.J. Babin et al. / Journal of Business Research 56 (2003) 541–551 543

concept, fashion consumers (typical consumers involved in detergent but it is less appropriate for buying a statement
clothing purchases) will express lower intentions to patron- about one’s self. An orange (blue) store with bright (soft)
ize it for fashions. Whereas the orange –bright combination lights being consistent with a discount (prestige) image, the
is commonly experienced among discounters (cf. Kmart), following hypothesis is offered:
orange –soft is not; therefore it may ameliorate some of the
Hypothesis 1b: A significant Lights  Color interaction is
negative reactions associated with orange.
expected such that any positive (negative) effects of blue
(orange) are diminished by bright (soft) lights.
3. Specific predictions Low prices, controlling for other factors, have the poten-
tial to create positive affect through increased transaction
We expect that changes in color will affect shopping utility (Schindler, 1989; Thaler, 1985). Consumers are
intentions through the associated cognitive and affective believed to have increased motivation beyond just the
reactions. More specifically, intentions will be operational- economic value of any money saved (Schindler, 1989).
ized two ways, both of keen interest to retailers: (1) Examples where increased motivation has an ability to
patronage intentions represent the likelihood of shopping create positive affect are frequent flyer programs and
in a store and (2) purchase intentions represent the like- blue –light specials, among others. Therefore, based on the
lihood of purchasing an item. Consistent with previous above findings, we expect the following:
research (Crowley, 1993; Donovan and Rossiter, 1982),
two dimensions of affect are used: (1) evaluation or affective Hypothesis 1c: Price relates negatively to consumer evalu-
tone which accounts for the degree of liking or how pleased ation and excitement.
one is with the environment and (2) excitement or positive
3.2. Hypothesis 2
arousal which is particularly relevant for fashion or mall
shopping contexts (Babin et al., 1998; Wakefield and Baker,
All things being equal, consumers view lower prices as
1998). Additionally, given the role that price plays in
more fair than higher prices (Kalapurakal et al., 1991).
establishing congruence with shopping motivations, effects
However, price fairness perceptions are also affected by
related to price are examined.
congruence. Thus, a price perceived as fair in one type of
environment is perceived as unfair in another (Martins,
3.1. Hypothesis 1
1995). Previous research suggests that a blue color and
other characteristics consistent with prestige can enhance
Hypothesis 1 addresses how color, the interaction
the desirability of goods (Baker et al., 1994; Bellizi and
between color and light, and price influence consumer affect
Hite, 1992; Middlestadt, 1990). For example, subjects rating
in the form of two key dependent variables: evaluation and
furniture against a red background considered it signific-
excitement. Following from Crowley (1993), and from
antly more ‘‘out of style’’ than did those rating it against a
consumers’ learned responses to colors, a blue store con-
blue background. Therefore, to the extent that ambient
cept, blue having a longer wavelength, should be evaluated
characteristics influence desirability, price fairness will vary.
more favorably than an orange store. However, orange and
blue should evoke similar levels of activation-related emo- Hypothesis 2a: Price fairness perceptions are higher in a
tion due to their location on the U-shaped arousal– wave- blue store than in an orange store.
length curve. Thus, to the extent that excitement represents
activation, no significant linear effect between color and Additionally, those combinations that frame a purchase
excitement is predicted. along a discount – prestige continuum elicit consumers’
learned price expectations leading to what some may say
Hypothesis 1a: A retail store described as having a blue are counterintuitive predictions. To illustrate this point, an
store interior is associated with a more positive evaluation item priced at US$100 at Nieman Marcus may be perceived
than is a store described as having an orange store interior. as priced fairly, while the same item priced at US$100 at
Kmart may not be viewed as priced fairly. Holding price
Further, given the likelihood that lighting– color combi- constant, consumers will rate a price as less (more) fair when
nations will vary consumer reactions based on their con- the atmospheric cues are congruent with low (high) price
gruency with known store types and shopping motivations, expectations. Thus, the following hypotheses are offered:
significant Color  Lights interactions are expected. In Hypothesis 2b: Color and lights interact to affect price
particular, the more (less) a store’s lights and color are fairness perceptions. For example, an orange (blue) store
consistent with discount (prestige) perceptions, fashion with bright (soft) lights produces low (high) price fairness
consumers, motivated more by prestige and self-esteem, perceptions.
will evaluate it less favorably and be less excited about
shopping for fashions in it. Among such motivated con- Hypothesis 2c: Price relates negatively to price fairness
sumers, a discount store may be appropriate for buying perceptions.
544 B.J. Babin et al. / Journal of Business Research 56 (2003) 541–551

3.3. Hypothesis 3 Following previous atmospherics research studying effects


of ambient cues such as music and lighting (cf. Baker et al.,
The third set of hypotheses addresses direct effects on 1992, 1994; Schlosser, 1998), a scenario approach was used
patronage and purchase intentions. Research supports rela- to execute the experimental design. While scenarios are
tionships between store-associated affect and desire to certainly open to criticism for a lack of realism, they are
remain, associate, spend money, and return to a store (Babin useful from a number of perspectives. Here, they allow an
and Darden, 1996; Baker et al., 1992; Donovan and examination of how consumers respond to the cognitive
Rossiter, 1982; Wakefield and Baker, 1998). Factors like representation of cues and cue combinations. This allows a
color and lighting lower or increase patronage intentions comparison of the effects of actual color presentation results
through their effect on positive affect. Therefore, consumers with those found here. By comparing results, inferences can
have a primary reaction to colors in terms of their effect on be made with respect to whether color effects are solely
price fairness and affect. These relationships facilitate the physiological or psychological. In addition, store designs
eventual effect on shopping and purchase intentions. Addi- must be concept tested. At the very least, a scenario
tionally, consumers are likely to prefer shopping and be approach allows a valid examination of consumer reactions
more willing to buy where prices are perceived as fairer. to store concepts. Third, given the large body of evidence
suggesting that people categorize things based on associated
Hypothesis 3a: Evaluation relates positively to patronage characteristics (see Anderson and Klatzky, 1987 for a
intentions and purchase intentions. review), it is quite likely that the same cognitive concepts
Hypothesis 3b: Excitement relates positively to patronage and schema-based affect is evoked. Fourth, it offers a
intentions and purchase intentions. pragmatic way to control for factors that would be difficult
to control for in a real store environment. While scenarios
Hypothesis 3c: Price fairness perceptions relate positively may not be perfect, they are useful.
to patronage intentions and purchase intentions. The scenario described a hypothetical retail store con-
sidering a location in the local area. Subjects were asked to
3.4. Hypothesis 4 read the description carefully and imagine visiting the store
for the first time. Color and lights were manipulated
To complete the empirical examination of mediation between subjects within this description. Each scenario
(Baron and Kenny, 1986), significant main effects and concluded with a detailed description of a fashionable
interactions on patronage and purchase intentions should sweater taken from a Land’s End catalog. The sweater
be significantly attenuated by including evaluation, excite- was also selected to have general appeal and was styled to
ment, and price fairness perceptions as covariates. be ‘‘acceptable for work or play.’’ These price points —
US$59.95 or US$149.95 — were picked based on study
Hypothesis 4: Evaluation, excitement, and price fairness pretests where female respondents were asked to give the
perceptions mediate relationships between price, color, and lowest and highest prices for which they may find a sweater
lights and patronage intentions and purchase intentions. like the one described above. Following exposure to this
scenario, subjects responded to a questionnaire containing
No main effects are predicted for lighting as there is little relevant measures.
guidance from the literature. The work in organizational
behavior shows that employee performance and satisfaction 4.1. Sample
can be influenced with changes in lighting, but, that the
changes are usually experienced over fairly large light Data were collected by female, student interviewers who
changes (Baron, 1990). One study examined the effect of received course credit for their participation. Guidelines for
retail lighting empirically (Areni and Kim, 1994). Two respondent eligibility were provided to insure a varied
levels of lighting were varied in an actual store setting. sample and to exclude participation by family members
Lighting brightness showed no effects on arousal, purchas- and other students (cf. Mick, 1996). Interviewers were
ing behavior, or time spent shopping. The only affect required to (1) complete one questionnaire themselves and
appeared to be based on the number of items handled. Thus, (2) obtain two responses one from a female aged between 30
lighting is hypothesized to influence reactions only in and 40 years, and another from a female older than 40. The
combination with color. study context lent itself best to female subjects based on
their familiarity with shopping for women’s fashions. Sub-
jects’ first names and telephone numbers were obtained at
4. Research methods the end of each survey to verify from a subsample of
respondents that the data were collected as reported.
Results were obtained from a 2  2  2 between-subjects This process resulted in data from 209 females from the
design. Treatments included color (orange vs. blue), lights university community. The average age was 33.2 years
(bright vs. soft), and item price (US$59.95 vs. US$149.95). (S.D. = 12.8). Reported household income varied with
B.J. Babin et al. / Journal of Business Research 56 (2003) 541–551 545

23% listing less than US$20,000 annually, 25% checked the 4.3. Manipulation checks
US$20,000 to US$40,000 category, 24% checked the
US$40,000 to US$60,000 category, 10% checked the Experimental manipulations appear effective. Although
US$60,000 to US$75,000 category, and 18% listing over the color manipulation seems quite obvious, its effective-
US$75,000 in annual income. Neither age nor income ness was examined by results of an unaided recall test.
influenced any hypothesized relationships. Therefore, Subjects were asked to recall a description of the store after
results reported below do not include age or income as exposure to dependent measures. Color appeared quite
covariates for the sake of simplicity. Subjects were assigned salient with over 80% of respondents listing blue or orange
randomly to one of eight experimental conditions. Cell sizes correctly. No misidentifications were made (i.e., some did
ranged from 18 to 28 across the conditions. not mention a color). The lighting manipulation was
checked by responses to a single six-point Likert item
4.2. Measures capturing agreement with the belief ‘‘the store had very
bright lights.’’ Results showed a significant variation in the
After a few instructions and exposure to the scenario, expected direction [ F(1,206) = 126.70; P < .0001; 4.90 in
subjects responded to bipolar semantic differential and the bright condition vs. 2.69 in the soft condition]. Like-
Likert scales. The direction of the items was varied to wise, the price manipulation was checked with a single item
inhibit response bias. The measures are derived from those expressing agreement with the belief that ‘‘the sweater had a
used in related research and adjusted to fit this specific very low price.’’ Results showed a significant variation in
context (e.g., Richins, 1997; Babin et al., 1998; Martins, the expected direction [ F(1,206) = 41.80; P < .0001; 3.10 in
1995). Excitement was operationalized as the summation the low price condition vs. 1.97 in the high price condition].
of 3 nine-point scale (ranging from ‘‘would not feel at Although not of direct relevance, the color by light com-
all’’ to ‘‘would feel very much’’) items indicating how bination appeared to affect perceptions of the store. The
exciting, thrilling, and encouraged subjects would feel interaction of color and lights predicted a measure differ-
when shopping in the store described. Evaluation was entiating prestige from discount stores significantly
measured using the sum of four bipolar semantic differ- [ F(1,204) = 4.66; P=.032]. Interestingly, the effects of color
entials (e.g., bad – good, favorable – unfavorable, not like- and lighting alone are not as strong [ F(1,204) = 1.83 and
able – likeable, not acceptable – acceptable). Price fairness F(1,204)=.35, respectively].
was assessed as the sum of 2 six-point scale statements.
The items included ‘‘How fair/unfair do you think the
price offered to consumers is?’’ and ‘‘Overall, how fair is 5. Results
its [the items] price?’’ Each was anchored with 1
(extremely unfair) and 6 (extremely fair). Store patronage Table 1 displays descriptive statistics. A multivariate
was measured via the sum of three items. Specifically, analysis was undertaken before testing specific relation-
subjects responded to an item such as, ‘‘How likely would ships. This model used all experimental variables to
it be that you would go into this store? . . . ____%.’’ predict each composite dependent variable (affective eval-
Finally, intention to purchase the sweater was operation- uation, excitement, store patronage intentions, and item
alized as the sum of 4 six-point semantic differentials purchase intentions) within a full-factorial design. Its
assessing how likely she would be to purchase that results suggest significant multivariate F (based on Wilkes
particular item given the need (e.g., very likely – very 7) statistics for price [ F(5,188) = 6.30, P < .001], color
unlikely, improbable– probable . . .). Both intention meas- [ F(5,188) = 2.30, P < .05], and the Color  Lights interac-
ures were included given the practical implications asso- tion [ F(5,188) = 2.00, P < .10]. The results presented below
ciated with each. Success comes not simply from winning reflect the univariate, full-factorial ANOVA and ANCOVA
shoppers, but it comes from converting large numbers of analyses that followed (all models contained all main
shoppers into buyers. effects and interactions as predictors). Note that tests
Coefficient alpha estimates of internal consistency for linking independent variables to mediators necessary to
each multi-item dependent measure were as follows: establish mediation are also implicit in the models testing
excitement, .81; evaluation, .92; patronage intentions, .91; Hypothesis 1 and Hypothesis 2.
purchase intentions, .91. Additionally, the bivariate correla-
tion for the two fairness items was .67. Bivariate correla- 5.1. Tests of hypotheses
tions among the five dependent measures range from .23
(excitement – price fairness) to .63 (purchase intentions – 5.1.1. Hypothesis 1
price fairness). Therefore, more complex discriminant Two separate full-factorial ANOVA models were used to
validity tests were not deemed necessary due to the test hypothesized relationships between ambient cues and
relatively high degree of internal consistency among the price and both affective dependent variables, evaluation and
items and relatively low intercorrelations between the excitement. The first predicted affective evaluation and the
dependent variables. second predicted excitement. Both univariate model F
546 B.J. Babin et al. / Journal of Business Research 56 (2003) 541–551

Table 1
Means and standard deviations
Independent variables Means (S.D.)
Evaluation Excitement Fairness Store patronage Purchase intentions
Color
Orange 17.09 (4.97) 8.98 (5.50) 6.44 (2.80) 131.80 (55.20) 13.18 (5.72)
Blue 18.79 (5.13) 10.65 (6.08) 6.88 (2.48) 153.80 (55.14) 15.24 (6.46)

Lights
Bright 17.90 (5.38) 9.23 (6.18) 6.32 (2.62) 140.35 (56.56) 14.40 (6.28)
Soft 18.10 (4.81) 10.65 (5.37) 7.00 (2.61) 144.73 (56.17) 14.08 (6.11)

Price
US$59.95 18.82 (4.87) 10.00 (6.19) 7.61 (2.45) 152.17 (56.80) 16.12 (5.79)
US$149.95 17.18 (5.23) 9.78 (5.51) 5.71 (2.44) 132.58 (54.30) 12.41 (6.04)
Overall mean 17.99 (5.11) 9.82 (5.85) 6.71 (2.63) 142.32 (56.25) 14.25 (6.19)

statistics are significant [ F(7,183) = 4.00, P < .001 and orange = 17.00), but not in the blue condition (x̄US$59.95 –
F(7,190) = 1.90, P < .07, respectively). blue = 20.10,x̄US$149.95 – blue = 17.30). Additionally, a margin-
As predicted, a significant color main effect on evalu- ally significant three-way interaction emerged ( F = 3.02,
ation was found ( F = 5.94, P < .05). Subjects rated a blue P < .10) for excitement. A post hoc analysis suggested that
store with a mean evaluation of 18.79 compared to 17.09 this is primarily attributable to ratings in both the orange,
for the orange condition. Following Crowley (1993), we soft, and high price condition and the blue, soft, and low
did not expect (or hypothesize) a strong, linear main effect price condition. In these conditions, subjects reacted with
of color on excitement. The results are fairly consistent significantly (t199 = 2.48; P < .01) greater excitement (11.70)
with her findings in that the main effect of color on than did subjects in other conditions (9.30).
excitement (x̄blue = 10.65 vs. x̄orange = 8.98) is less strong
(Z2 = 0.027 for evaluation vs. Z2 = 0.014 for excitement) but 5.1.2. Hypothesis 2
significant at the .10 level ( F = 2.77, P < .10). These find- A third full-factorial ANOVA tests relationships between
ings are generally consistent with Hypothesis 1a. Hypo- ambient cues and perceptions of price fairness [model
thesis 1c also predicts main effects and is partially F(7,179) = 3.36, P < .01]. The results suggest a nonsignifi-
supported in that lower prices evoked significantly high- cant main effect of color on fairness ( F = 1.00, P>.10). The
er evaluations ( F = 5.71, P < .05) than did higher prices means are available in Table 1. These results fail to sup-
(x̄US$59.95 = 18.82, x̄US$149.95 = 17.18), but the price main port Hypothesis 2a. However, consistent with Hypothesis
effect on excitement is insignificant ( F = 0.37, P > .10). 2b, a significant Color  Lights interaction is observed
Consistent with Hypothesis 1b, the Color  Lights inter- ( F = 13.86, P < .01). Fig. 1(C) suggests the nature of this
action affected evaluation significantly ( F = 10.51, P < .01). interaction. For a blue store interior, bright lights resulted in
The interaction is displayed in Fig. 1(A). A blue store higher price fairness perceptions (x̄blue – bright = 7.07) than did
interior is associated with more favorable affect in the bright soft lights (x̄blue – soft = 6.60). For the orange store interior,
lights condition (x̄blue – bright = 19.80) relative to soft lights soft lights resulted in higher price fairness perceptions
(x̄blue – soft = 17.72). In contrast, orange store interiors (x̄ orange – soft = 7.67) than did bright lights (x̄ orange –
resulted in greater positive affect in the soft lights condition bright = 5.76). These results support Hypothesis 2b.
(x̄ orange – soft = 18.57) relative to bright lights (x̄orange – Consistent with Hypothesis 2c, a significant main effect
bright = 15.96). A similar pattern of results is observed in of price on price fairness is observed ( F = 37.96, P < .001)
the ANOVA model predicting excitement. The model pro- and is in the observed direction (x̄ US$59.95 = 7.61,
duced a marginally significant Color  Lights interaction x̄US$149.95 = 5.71). Although not hypothesized, results sug-
( F = 2.67, P < .10) for excitement. This interaction is shown gest a significant main effect of lights on price fairness
in Fig. 1(B). Whereas bright and soft lights resulted in ( F = 4.89, P < .05). Cell means suggest greater perceived
similar excitement levels for a blue store interior (x̄blue – price fairness in the soft condition (7.00) as opposed to the
bright = 10.65, x̄blue – soft = 10.53), with an orange interior, soft bright condition (6.32).
lights resulted in significantly greater excitement (x̄orange –
soft = 10.59) relative to bright lights (x̄orange – bright = 7.97). 5.1.3. Hypothesis 3
Although not hypothesized, the ANOVA model predict- Hypothesis 3 was tested using two separate full-factorial
ing evaluation is qualified by a significant Color  Price ANCOVA models. The first ANCOVA predicts store pat-
interaction ( F = 4.16, P < .05). This effect suggests that ronage intentions using each treatment as a main effect, all
similar evaluation scores are evoked across price in the four interaction terms, and subjects’ perceived evaluations,
orange condition (x̄ US$59.95 – orange = 17.10, x̄ US$149.95 – excitement, and price fairness as covariates. The second is
B.J. Babin et al. / Journal of Business Research 56 (2003) 541–551 547

Fig. 1. Means of interaction effects.

the same with the exception that it predicts product purchase store patronage intentions. Conversely, price fairness
intentions and includes store patronage as an additional ( F = 0.30, P>.10, b = 0.06) is not related significantly to
covariate. store patronage intentions. Therefore, Hypotheses 3a and 3b
The results from the lower portion of Table 2 show are supported with respect to patronage intentions.
significant effects of evaluation ( F = 104.4, P < .001, Table 2 suggests that product purchase intentions are
b = 0.65) and excitement ( F = 15.09, P < .001, b = 0.22) on significantly related to evaluation ( F = 4.30, P < .05,
548 B.J. Babin et al. / Journal of Business Research 56 (2003) 541–551

Table 2
Analysis of variance results for store patronage and purchase intentions
Store patronage Purchase intentions
Nonmediated results Mediated results Nonmediated results Mediated results
df F Significance F Significance F Significance F Significance
of F of F of F of F
Main effects
Color 1 8.70 .00 1.97 .16 5.64 .02 0.39 .54
Lights 1 0.04 .87 0.21 .64 0.20 .66 1.19 .28
Price 1 4.70 .03 1.15 .29 14.86 .01 1.81 .18

Two-way interactions
Color  Lights 1 3.96 .05 0.02 .96 5.02 .03 0.00 .97
Color  Price 1 4.34 .04 1.31 .26 0.08 .78 1.09 .30
Lights  Price 1 0.24 .62 0.61 .43 0.03 .87 0.07 .79

Three-way interaction
Color  Lights  Price 1 0.43 .51 0.15 .70 0.63 .43 1.37 .26

Covariates
Evaluation – – – 104.41 .00 – – 4.30 .04
Excitement – – – 15.09 .00 – – 4.34 .04
Fairness – – – 0.30 .58 – – 35.49 .01
Store patronage – – – N.A. N.A. – – .66 .42

b = 0.24), excitement ( F = 4.34, P < .05, b = 0.15), and price intentions (x̄orange – bright = 9.60, x̄blue – bright = 12.66). In addi-
fairness perceptions ( F = 35.49, P < .001, b= 0.45) pos- tion, the Color  Price interaction affected store patronage
itively. The relationship between store and purchase primarily because of a far higher mean in the low price, blue
intentions was insignificant. These results support Hypoth- condition (x̄ orange – US$149.95 = 127.70, x̄ blue – US$149.95 =
eses 3a, 3b, and 3c with respect to product intentions. 136.70, x̄orange – US$59.95 = 132.50, x̄blue – US$59.95 = 170.90).
For both dependent variables, store patronage and pur-
5.1.4. Hypothesis 4 chase intentions (see Table 2), all significant effects (main
Procedures suggested by Baron and Kenny (1986) were effects and interactions) of the independent variables on
used to test for mediation effects of evaluation, excitement, dependent variables were no longer evidenced when medi-
and price fairness. Having established significant relation- ators are introduced. For example, the main effect of color
ships between predictors and mediators, and between the on store patronage (see Table 2) is significant when no
mediators and the dependent variables above, the effect of mediators are present ( F = 8.70, P < .01) yet is nonsignifi-
adding the three proposed mediating constructs on the cant when the mediators are included ( F = 1.97, P>.10).
predictive power of hypothesized relationships is analyzed. Thus, support is found for Hypothesis 4 in that subjects’
Table 2 displays ANOVA results showing the effects of the affective and cognitive reactions mediate the relationships
predictors on the dependent variables in both the presence between physical store characteristics and behavioral inten-
and absence of the mediators. tions. This result is qualified only in that the price fairness –
The ‘‘nonmediated’’ models suggest a pattern of signifi- patronage intentions link is insignificant.
cant main effects and interactions on patronage and pur-
chase intentions similar to that observed in the models
testing Hypothesis 1 and Hypothesis 2. The model F 6. Discussion
statistics are both significant [ F(7,172) = 2.90, P < .01 and
F(7,172) = 4.20, P < .001, respectively). For example, color 6.1. Summary
and price displayed significant main effects on both inten-
tions measures (see Table 2 for the F statistics; P < .05), and This research offers several potential practical and theor-
a significant Color  Lights interaction is also observed. etical contributions. First, additional evidence is presented
These interactions (see Fig. 1) suggest that whereas a blue suggesting ways store consumers may be affected by color.
and orange interior produce similar levels of store patronage In particular, the results suggest interesting findings with
(x̄orange – soft = 140.97, x̄blue – soft = 147.59) and product pur- respect to consumers’ reactions to various color and light
chase intentions (x̄orange – soft = 10.94, x̄blue – soft = 10.79) in combinations. Second, the research suggests the efficacy
the soft lights condition, these levels change considerably with which consumer reactions to these characteristics are
in the bright lights condition for both store patronage mediated by their subsequent cognitive and affective reac-
(x̄orange – bright = 122.63, x̄blue – bright = 159.14) and purchase tions. Third, by comparing these with previous results, the
B.J. Babin et al. / Journal of Business Research 56 (2003) 541–551 549

research offers insight into the mechanism with which most fair price perceptions suggesting it is clearly not
consumers respond to lights. Fourth, the research suggests classified as a ‘discount’ or ‘off-price’ store. Whereas this
further how physical store characteristics frame purchase research cannot address this issue fully, it raises interesting
decisions and affect perceptions of price fairness. This points for further research. Additionally, we found that the
section summarizes and elaborates on the results with Color  Price interaction affected store patronage percep-
respect to these contributions. tions. The nature of this interaction suggests that consumers
Consistent with previous research (e.g., Crowley, 1993; react positively to low prices when stores have a blue
Bellizi et al., 1983), consumers reacted more favorably to interior compared to an orange interior. Implications of
cool store interiors. Subjects rated a blue interior as sig- these findings need to be explored further.
nificantly more likeable, and they expressed relatively Several practical implications can be suggested. The
greater shopping and purchase intentions in the blue as results suggest that consumers will react more favorably
opposed to the orange condition. However, a persistent and be more likely to shop and purchase socially oriented
interaction suggested that lighting and color combinations products in a new store with a blue interior. However,
affect consumers’ cognitive representation and affective lighting must be considered, too. The use of orange with
reaction. The interactions imply that the relatively poor bright lights can reduce shopping intentions through
reaction of consumers to an orange store interior is mitigated reduced affect and excitement. In addition, this combination
by combining it with soft lights. Consumers reported the appears to produce expectations of very low prices. In
lowest evaluation, excitement, price fairness, patronage and contrast, the use of orange with soft lighting appears to
purchase intentions in the orange and bright condition. produce quite the opposite result. Clearly, the selection of
However, combining orange with soft lights produced color and lighting is a complex question and it would be
reactions that were much more comparable to either blue wise to consider other factors as well. For example, due to
condition. The cell means suggest a less noticeable, reverse the mediation effects shown, any negative effects of color
trend for consumers to react more favorably to brightly lit, and lighting may be overridden by introducing other factors
blue stores as opposed to softly lit, blue stores. that enhance evaluation and excitement. Additionally, cer-
Overall, results also suggest that effects of color, lights, tain combinations are traditionally associated with certain
and price on behavioral intentions are mediated by the retailers and as such, a desire for consistency may dom-
cognitive and affective reactions they create. Specifically, inate. Interestingly, traditional Kmart stores use orange
all significant, direct, experimental effects on either patron- liberally in their brightly lit stores. Future research might
age or purchase intentions disappeared when subjects’ examine the extent to which these color schemes affect their
perceived evaluation, excitement, and price fairness percep- performance relative to perceptually similar competitors
tions were introduced as predictors. This finding suggests like Wal-mart.
that although color, lighting, and price are linked to shop-
ping intentions, the effect is indirect and other factors that 6.2. Limitations and future research
also influence affect and price fairness must be considered
in understanding their effects more fully. The study reported here suffers from several limitations.
The findings also are useful in understanding the mech- For example, our experimental design involved a clothing
anism by which color works. With respect to color main context. Therefore, these results may not be replicated in a
effects, results presented here showed a preference for blue different setting involving less involving or socially mean-
interiors. The effect on excitement was only marginally ingful goods (i.e., a grocery store). Additionally, we studied
significant. These results are fairly consistent with Crowley only women and the potential exists that men may react
(1993) who showed preferable evaluations for blue over red differently. Further, we chose to operationalize the store
or yellow, but activation means did not display a strong through a scenario approach. While other options (experi-
linear trend (closer to a quadratic trend). Given that previous mental and nonexperimental) exist, this approach has been
research operationalized store interiors by the background effective in previous atmospheric research as cited earlier.
color of slides, and that we operationalized it through Although having subjects rate actual clothing within actual
subject imagery, the consistency in results supports further stores would maximize realism, this approach would make
that consumer reactions to color are the result of learning control of extraneous factors difficult and previous research
more than being physiological. suggests that consumers can create realistic, visual images
Further, color and color – lighting effects on price fairness from verbal stimuli (MacInnis and Price, 1987). Addition-
perceptions suggest that combinations change the cognitive ally, this approach allowed us to compare previous results
representation of the store. Controlling for price, consumers from studies using slide backgrounds to operationalize store
rated the store merchandise’s price as least fair in the orange color schemes (cf. Bellizi and Hite, 1992; Bellizi et al.,
and bright condition. This would be consistent with a 1983; Crowley, 1993) with those presented here and offers
classification of a bright, orange store interior with a insights into learning aspects of color. Also, consumers
‘discount’ or ‘off-price’ type of store in which a high price generally do not decide which stores to patronize with
is unexpected. In contrast, orange and soft produced the physical images of a store interior within their sight. Rather,
550 B.J. Babin et al. / Journal of Business Research 56 (2003) 541–551

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