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ARTICLE IN PRESS

Journal of Retailing and Consumer Services 16 (2009) 329–339

Contents lists available at ScienceDirect

Journal of Retailing and Consumer Services


journal homepage: www.elsevier.com/locate/jretconser

Influence of retail store environmental cues on consumer patronage


behavior across different retail store formats: An empirical analysis of
US Hispanic consumers
Yoo-Kyoung Seock
Department of Textiles, Merchandising and Interiors, The University of Georgia, Athens, GA 30602, USA

a r t i c l e in fo abstract

This study examined the influence of Hispanic consumers’ perceived importance of apparel retail store
Keywords: environmental cues and demographic characteristics (i.e., age and the number of years lived in the US) on
Hispanics their apparel store patronage behavior across various retail store formats. Three apparel retail store
Retail store formats environmental cue dimensions were identified. Of the three dimensions, Customer Service appeared as a
Store environmental cues significant determinant in Hispanic consumers’ decision to shop at department stores, specialty stores, and
Patronage behavior mass merchant stores. Convenience was significantly, but negatively, related to the use of specialty stores.
Physical Atmosphere appeared as significant determinants of Hispanic consumers’ use of Internet websites.
The respondents’ shopping frequency at department stores, Internet websites, and catalogues was
significantly different based on the respondents’ age and number of years lived in the US This study offers
insights for apparel retailers in building effective retail store environments to attract Hispanic consumers.
& 2009 Elsevier Ltd. All rights reserved.

1. Introduction and services than do non-Hispanics (HispanicTrends.com, March/


April, 2005). More specifically, Hispanic households spent a
The US population has experienced remarkable growth over greater portion of their income in 2004 on groceries, footwear,
the past half-century and is becoming more racially and ethnically men’s and children’s apparel, gasoline and motor oil, and house-
diverse with faster population growth among minorities than hold textiles than other goods (HispanicTrends.com, January/
Caucasians (Shrestha, 2006). The US Census Bureau (2007) February, 2005).
reported that the nation’s minority population reached 100.7 As the population and purchasing power of this group grows,
million in 2006, increased from 98 million in 2005, and Hispanics understanding Hispanic consumers and appealing to them
accounted for almost half of the nation’s minority population becomes an increasingly important opportunity for retailers to
growth between 2005 and 2006. A more recent report by the US capitalize on the projected hundreds of billions of dollars of
Census Bureau (2008) showed that the US Hispanic population annual sales potential. However, despite the mounting evidence of
reached 45.5 million on July 1, 2007, which accounts for 15.1% of Hispanics’ growing impact and influence on the retail market,
the estimated total US population of 301.6 million. The Pew research has lagged behind in this area, and little has been done to
Hispanic Center report for US population projections revealed that investigate this group and their shopping behaviors. Furthermore,
Hispanics will make up 29% of the US population in 2050, making US Hispanics were found to exhibit strong ethnic identification
them the nation’s largest and fastest-growing minority population and attitudinal differences than other ethnic groups in their
group in the US (Pew Hispanic Center, 2006). Moreover, according shopping behaviors (Deshpande et al., 1986; Suro, 2006). Retailers
to a report released by Hispanic Telligences, along with such should not assume that marketing products to the Hispanic
substantial population increases, Hispanic purchasing power population is no different than marketing to a general population
surged to nearly $700 billion in 2004, accounting for 8.5% of total (Valdez, 2000). Marketers should know the preferences of this
US purchasing power that year, and is projected to reach as much consumer group compared to other ethnic groups and develop a
as $1 trillion by 2010 (Broide, 2004). Although the median income differentiated marketing plan. In order to shed light on those
of Hispanic households is much less than that of non-Hispanic preferences, the present study focuses on Hispanic consumers’
white households (US Census Bureau, 2007), Hispanic households shopping behaviors.
spend a greater percentage of their disposable income on goods Over the past decades, the retail business environment has
faced aggressive competition with rapid market entry of innova-
tive store concepts and formats (Maronick and Stiff, 1985). A
E-mail address: yseock@fcs.uga.edu company’s success in financial performance and market shares

0969-6989/$ - see front matter & 2009 Elsevier Ltd. All rights reserved.
doi:10.1016/j.jretconser.2009.03.001
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330 Y.-K. Seock / Journal of Retailing and Consumer Services 16 (2009) 329–339

largely depended on the satisfied customers who are willing to customer loyalty. Thus, the purpose of the present study is to
purchase products or services repeatedly (Siu and Cheung, 2001; examine the influence of Hispanic consumers’ perceived impor-
Raphel, 1999; Reichheld and Sasser, 1990; Srinivasan et al., 2002). tance of retail store environmental cues on store patronage
In this vein, understanding consumers’ store choices and their behavior across various retail store formats. The study focuses
patronage behavior have been identified as keys to the success of a on apparel retail stores because Hispanic consumers spend a
particular retail business and have become a premier objective for significant share of their income on clothing items such
marketers (Osman, 1993). Therefore, increasing consumers’ loy- as footwear and men’s and children’s apparel. According to
alty to the store has been a managerial challenge to marketers, HispanicTrends.com (January/February, 2005), Hispanic house-
and gaining in-depth understanding and empirical estimation of holds spent, on average, $2097 for purchasing apparel items in
consumer loyalty behavior has been an important issue to 2004, which accounts for 6% of their annual expenditure based on
researchers. In the face of the recent demographic movement of an annual income of $35 k. This statistic is consistent with DRI
growing minority populations in the US, retailers are recognizing McGraw-Hill’s projection in that Hispanics are expected to drive
that various ethnic groups have different store choice and significant growth in apparel and shoe purchases (Euro RSCG
patronage behaviors (Cotton Incorporated’s Lifestyle Monitor, Magnet, 2002). Hispanic consumers’ substantial expenditure on
2005a). According to the report released by Cotton Incorporated’s apparel items may transform the existing apparel market and
Lifestyle Monitor, almost 25% of Hispanics tend to shop at redefine its future. However, the apparel industry is one of the
specialty stores and about 22% at chain stores, while Caucasians business sectors that invest the least amount of money to
and African-Americans shop primarily at mass merchants (29% Hispanics, according to Association of Hispanic Advertising
and 27%) and Asians at specialty stores (33%). Thus, retailers Agencies (2004). This study investigating Hispanic consumers’
should abandon the one-look-fits-all strategy and try to differ- patronage behaviors will provide practical information for apparel
entiate stores that appeal to their target demographic group. More retailers to penetrate this lucrative consumer market and earn
importantly, researchers found that Hispanic consumers tend to loyal customers.
patronize the store more frequently once they develop a positive
perception of it (Saegert et al., 1985).
Much research showed that certain attributes of retail store 2. Literature review
environment influence store choice and patronage behavior
(Baker et al., 2002; Darden et al., 1983; Darley and Lim, 1993; 2.1. Hispanic-American consumers
Hu and Japer, 2006; Pan and Zinkhan, 2006; Roy and Tai, 2003;
Sherman et al., 1997; Sirgy et al., 2000; Spansenberg et al., 1996; Distinctiveness theory posits that a person’s ethnicity is a
Thang and Tan, 2003; Thompson and Chen, 1998; Ward et al., distinctive and salient trait that differentiates behavior (Lee et al.,
1992). Moreover, a growing body of academic research also 2002; Steenkamp et al., 1999; Torres and Briggs, 2005; Usunier,
supports the importance of store environment as a marketing tool 2000). Because the members of an ethnic group have shared
to affect shoppers’ approach behaviors (Fiore et al., 2000) as well norms and beliefs, they conserve the common characteristics of
as a dominant market differentiator (Reardon et al., 1995; Roy and the national culture from which they originate (Steenkamp et al.,
Tai, 2003). Thus, effectively managing the retail store environment 1999; Usunier, 2000) and each ethnic group constitutes a unique
encountered by customers has been identified as a viable retail community with their own cultural values (Lee et al., 2002).
management tactic (Babin and Darden, 1995; Gilboa and Fafaeli, Existing evidence from research lends support to the notion that
2003) and has gained a growing amount of attention from both ethnicity is an important trait in differentiating consumer
industry and academia (Smith and Burns, 1996). Schlosser (1998) behavior, especially regarding apparel shopping. Researchers
noted that, in the face of increased market competition, retailers’ suggested that Hispanics in the United States show strong ethnic
sole reliance on promotional techniques is inadequate; retailers’ identification, which results in attitudinal and behavioral differ-
efforts must turn from offering just price promotions to creating a ences from other ethnic groups in their shopping behaviors
pleasant shopping experience. Researchers also asserted that store (Deshpande et al., 1986; Suro, 2006). According to a report
environments can influence consumers’ willingness to purchase released by Cotton Incorporated’s Lifestyle Monitor (2005c),
or entice them to stay in the store for a longer period of time Hispanic women were more particular about their appearance
(McDougall and Fry, 1974–75; Mano, 1999). In a survey conducted than women of other ethnicities. Well over half (57%) of Hispanic
by Drug Store News, a majority of respondents, almost nine out of females, according to the same report, opted for style over
ten, revealed that a pleasant store atmosphere was either very or comfort, choosing clothing that looked attractive on them rather
somewhat important when they chose a store in which to shop than clothing that was comfortable. Only 45% of Caucasians and
(Parks, 1998). According to Chain Store Age, retailers reported a 46% of African-Americans held the same attitude. Furthermore,
positive connection between improving the retail store atmo- while only 50% of Caucasians and 56% of African-Americans
sphere and increasing sales (‘‘Store atmospherics,’’ 2005). As bother to seek help while shopping for clothes, 60% of Hispanic
consumers often infer retail store images from such environ- female respondents tended to seek some friendly advice or a
mental cues (Bloemer and Ruyter, 1998), the store environment second opinion when shopping for apparel. Hispanic female
may represent the most imperative channel through which consumers spend significantly more time shopping than their
retailers can communicate with their consumers. In fact, retailers Caucasian and African-American counterparts (Cotton Incorpor-
have been spending millions of dollars every year for the design, ated’s Lifestyle Monitor, 2005b). They spend an average of
construction, and refurbishing of their stores in order to keep their 135.1 min in stores shopping for apparel, while Caucasian and
stores up-to-date and project an image that appeals to their target African-American female respondents recorded an average of 89.4
markets (Roy and Tai, 2003). and 109.27 min, respectively. Statistics from the Cotton Incorpor-
To offer an attractive retail store environment – that is, to ated’s Lifestyle Monitor (2005a) also show further evidence that
effectively manage the relationship between the customer and the there are purchasing behavior differences among consumers of
retail store environment – retailers should know what their target different ethnicities. In all, 62% of Asians report that they enjoy
consumers consider important when they chose a store in which wearing denim, followed by Hispanics (56%), Caucasians (54%),
to shop, and then design their stores to appeal to those targeted and African-Americans (45%). In all, 24.6% of Hispanics tend to
markets, thereby drawing customers into stores and developing buy denim jeans primarily at specialty stores and 21.6% at chain
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Y.-K. Seock / Journal of Retailing and Consumer Services 16 (2009) 329–339 331

stores, while Caucasians and African-Americans shop primarily ment experienced at the point of purchase influences consumers’
at mass merchants (29% and 26.9%, respectively) (Cotton shopping behavior and, therefore, the practice of creating
Incorporated’s Lifestyle Monitor, 2005a). influential atmospheres should be an important marketing
Recognizing the purchasing power of this market, many strategy for most exchange environments.
retailers have been tapping into this consumer group for years. Since 1974 when Kotler suggested the term atmospherics to
Sears has advertised in the Hispanic community with customized refer to the ‘‘intentional control and structuring of environmental
Spanish-language advertisements (Sears Press Release, 2005). cues,’’ marketing researchers and practitioners in the retailing area
Moreover, in 2005, Sears launched Latina Life, a new line of have paid considerable attention to retail store atmospherics.
apparel, footwear, and handbags influenced by the style of Lindquist (1974) identified nine categories of store environmental
Hispanic women, and offered the merchandise in 425 stores attributes that contribute to consumer attitude toward retail
across the country, offering bilingual store associates and Spanish- stores: merchandise, service, clientele, physical facilities, conve-
language signage to assist Hispanic customers (Sears Press nience, promotion, store atmosphere, institutional factors, and
Release, 2005). Kmart and Kohl’s collaborated on clothing lines post-transaction satisfaction. Of all these factors, Linquist claimed
with Latina superstars such as Thalia Sodi and Daisy Fuentes that the merchandise, service, and locational convenience aspects
(Duprey, 2004). In addition, fashion powerhouses such as Carolina were the most dominant environmental cues in formulating
Herrera, Oscar de la Renta, Narcisco Rodriguez and Louis Verdad consumers’ attitudes toward retail stores. Mark (1976) concluded
have been taking Hispanic fashions from the street to the runway, that the key factors of store attributes were fashionability,
filling the pages of Vogue, W and Elle more than ever before with advertising, convenience, outside attractiveness, salesmanship,
Hispanic inspired styles (Cotton Incorporated’s Lifestyle Monitor, and service. Mazursky and Jacoby (1986) discovered that the
2005b). Therefore, Hispanic consumers’ distinctive apparel shop- merchandise-related aspects (quality, price, and assortment),
ping behaviors, along with a huge market potential, deserve service-related aspects (quality in general and salespeople service),
attention from apparel retailers who plan on reaching this and pleasantness of shopping at the store are among the most
lucrative and ever-expanding market. critical components of store image attributes. They also concluded
Researchers also noted that demographic and socio-psycho- that retail store image has both core facets, such as price and
graphic background such as age, gender, country of origin, social merchandise, and more peripheral facets, such as policy and
class and income status are critical to the success of interethnic service. Bloemer and Ruyter (1998, p. 501) proposed that store
communications with the Hispanic population (Suro, 2006; Valdez, image can be explained as a function of the salient attributes of a
2000). Meanwhile, previous research in marketing and social particular store that are evaluated and weighted against each
sciences suggests that Hispanic consumers’ degree of assimilation other; ultimately, they defined store image as ‘‘the complex of a
in American society is an important determinant that differentiates consumer’s perceptions of a store on different (salient) attributes.’’
their behaviors, indicating that the country of origin is not a key
variable in discerning individual differences within this population
2.3. Patronage behavior
(Deshpande et al., 1986; Donthu and Cherian, 1994; Sabogal et al.,
1987; Segal and Sosa, 1983; Webster, 1992). In addition, Korgaonkar
Recognizing the importance of patronage behavior, researchers
et al. (2000) found that assimilation level is a significant factor that
have tried to define consumers’ store patronage behavior and
differentiates Hispanic consumers’ beliefs and attitude toward
develop dimensions that measure patronage. Osman (1993,
direct marketing advertising. One of the factors that influences
p. 137) delineated five variables that measure the degree of loyalty
assimilation level might be the number of years lived in the US
patronage from past studies: ‘‘(1) the percentage of purchases of a
According to Suro (2006), approximately 70% of the Hispanic
specified product category at a chosen store, (2) the frequency of
population consists of immigrants and their children and the
visits to the store in relation to other stores during a certain period
numbers of years they lived in the United States vary greatly. Such
of time, (3) the ratio of ranking between stores, (4) the propensity
variation may result in a range of existing perceptual and behavioral
to shop at the store in the future, and (5) the extent of the
tendencies among this group because some may preserve prior
customers’ willingness to recommend the store to their friends.’’ In
learning and pre-existing attitudes from their own culture more
his study of patronage behavior, Osman (1993) proposed a more
than do others. Others may neglect the distinct cultural traits and
simplified definition of patronage behavior: ‘‘the repeat purchase
adopt the new cultural traits and values. In 2008, Seock and Sauls
behavior at a particular store for either the same products or any
found that age is an important determinant that differentiates
other products’’ (p. 135). In a study of apparel store patronage
Hispanic consumers’ shopping tendencies and store evaluation
behavior, Shim and Kotsiopulos (1992) defined patronage behavior
criteria. Seock and Bailey (2009) also found that Hispanic
as store choice behavior that represents an individual’s preference
consumers’ use of personal and impersonal information sources
for a particular store for purchasing products. More recently, Pan
for apparel shopping varied by age. Thus, this study investigates the
and Zinkhan (2006) identified retail patronage as having two
influence of such demographic characteristics as age and the
dimensions: (1) store choice (a consumer’s choice to patronize a
number of years lived in the US.
particular store) and (2) frequency of visit (how often a shopper
patronizes that store). They also found that retail image was a
major predictor for explaining shopping frequencies. As discussed
2.2. Retail store environmental cues
above, the degree of store loyalty or patronage behavior can be
measured by using various variables. Past studies on store loyalty
Underestimating the importance of the shopping experiences
or patronage behavior, however, have used either one or a
within a retail store, retailers in the past preferred to entice
combination of several of these variables for this measurement.
consumers into their stores by announcing sales incentives
(Kotler, 1973–1974; Saffer, 1996). However, retailers have come
to realize the importance of environmental cues and have tried to 2.4. Relationship between retail store environment and patronage
develop effective retail store atmospherics in order to attract their behavior
target customers and increase their profitability (Sirgy et al.,
2000). Turley and Milliman (2000) asserted that marketing Evidence from the existing academic literature suggests
researchers have come to realize that the physical store environ- a theoretical and empirical connection between retail store
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332 Y.-K. Seock / Journal of Retailing and Consumer Services 16 (2009) 329–339

environment cues, and consumer store choice and patronage some other facility that has to be visited and not because of
behavior. Earlier in 1961–1962, Fisk (1961–1962) presented the favorable attributes that the store may offer. In a similar vein, May
six-category framework of store attributes relevant to customer (1981) claimed that consumers tend to make more of their
patronage: location convenience, merchandise suitability, value patronage decisions based on the shopping complex instead of the
for price, sales effort and store service, congeniality of store, and individual store. According to Gripsrud and Horverak’s (1986)
post-transaction satisfaction. Bearden (1977) examined store research, the presence of nearby complimentary services impacts
selection behavior among four department stores by investigating a consumer’s selection of food retailing outlets. Their findings
the effects of the following seven salient store environmental indicated that the proximity to other service facilities as well as
characteristics: price, quality, selection, atmosphere, location, the opening hours are important determinants of store choice in
parking, and salesperson. Of those seven characteristics, atmo- food retailing.
sphere, location, parking facilities, and friendly salespeople were Clearly, considerable research efforts have been devoted to
found to be significant attributes in store choice. Donovan and identifying important retail store environmental cues that affect
Rossiter (1982) suggested that retail store image affects a consumer store choice and patronage behavior; the present study
shopper’s ultimate choice of retail stores to be patronized. of retail store environment and store patronage behavior does not
Louviere (1984) also claimed that locational convenience and propose a new research paradigm. However, no study has been
attractiveness (including image) affect the choice of retail outlet. done focusing on Hispanic consumers’ perceptions of retail store
An experiment performed by Mazursky and Jacoby (1986) environment and their store patronage behaviors. The lack of
revealed that store attributes affected consumers’ inclination to academic foundations regarding the relationships between His-
stores. In 1995, Kim and Kang noted that consumers’ perceived panic consumers’ perception of retail store environmental cues
importance of store attributes varies by retail store format and and patronage behavior often makes it difficult for retailers to
consumer characteristics. penetrate this consumer market. This study investigates the
Reviewing retail store environmental aspects of previous relationship between them.
research, Sirgy et al. (2000) proposed five retail environment
cues that affect retail patron image: atmospheric cues, location
cues, merchandise cues, price cues, and promotion cues. Thang 3. Conceptual framework
and Tan (2003) investigated how consumer perception of the store
attributes affects their preference for stores based on their post- Earlier research suggested that store patronage or loyalty is the
visit ranking of the stores. The results from their study identified result of consumers’ favorable image of the store, which is formed
the following attributes as significantly influencing consumer by their perceived importance of store attributes (Donovan and
preference: merchandising, accessibility, reputation, in-store Rossiter, 1982; Hirschman, 1981; Osman, 1993; Sirgy et al., 2000;
service, and atmosphere. They concluded that possession of Thang and Tan, 2003). According to Sirgy et al (2000), the retail
certain strong attributes increases the ability of the store to store environment provides informational cues that consumers
attract consumers. Roy and Tai (2003) also asserted that unique can use to form an impression of the store. They also noted that
store environment can influence a shopper’s patronage decision. consumers evaluate the store based on the perceived importance
They specifically noted that in-store elements such as color, of such environmental cues and develop a retail patron image that
lighting, style, or music are likely to have more immediate effects influences their store choices and patronage behaviors. The
on a shopper’s purchase decision. More recently, Pan and Zinkhan current study adopted retail store image paradigm in formulating
(2006) found that product-relevant and market-relevant retail a conceptual framework of the study examining store patronage
store attributes were major predictors for explaining store choice behaviors. In addition to retail store image framework, the present
and shopping frequencies. In their study, product-relevant store study also included two demographic variables; number of years
attributes included selection, quality and price, and market- lived in the US, and age as independent variables in predicting
relevant attributes included customer service, store atmosphere, store patronage behavior. Because previous research suggested
convenient location, convenient shopping hours, convenient that age (Seock and Sauls, 2008) and the number of years lived in
parking facilities, salespeople, and fast checkout. the US (Suro, 2006) are important determinants that differentiate
Furthermore, some researchers claimed particular importance Hispanic consumers’ shopping behaviors. Accordingly, the con-
for the locational convenience aspect of the store environment in ceptual framework of the current study is suggested as shown in
store choice or frequent visit to the stores, considering the fact Fig. 1.
that shopping is often done in multi-purpose trips. Black (1984) From the previous literature on the distinctiveness theory,
proposed that customers are likely to make their store selection ethnicity is revealed as a distinctive and important trait that
while considering a number of activities simultaneously. For differentiates behavior because each ethnic group constitutes a
instance, customers may visit a store merely because it is near unique community with their own cultural values. As earlier

Retail Store
Environmental
Cues
Retail Store
Patronage
Behavior
Demographic Variables
Age
No. of years lived in the U.S.

Fig. 1. Conceptual framework of the study.


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Y.-K. Seock / Journal of Retailing and Consumer Services 16 (2009) 329–339 333

studies suggest that Hispanic-American consumers demonstrate completed incorrectly or missing too many questions and those
strong ethnic identification, they might exhibit distinctive pre- aged over 50, 332 surveys remained for use in the data analysis. In
existing perceptions in evaluating retail store environmental cues, this study, four respondents aged over 50 were dropped because
which affect their store choice and patronage behavior. Thus, the earlier studies on older consumers aged over 50 revealed that
following hypothesis was developed. these consumers exhibit distinctive shopping behaviors that are
different from other age groups (Carrigan, 1998; Lumpkin and
H1. Consumers’ perceived relative importance of retail store Hite, 1988; Tongren, 1988; Moschis, 1992; Moschis and Mathur,
environmental cues will consist of distinct dimensions. 1993). A summary of the respondents’ characteristics is shown in
As discussed earlier in the literature on the relationship Table 1.
between retail store attributes and consumers’ store choice and Half of respondents (50%) were female. A large proportion of
consumers’ store patronage behaviors, the researcher anticipated the respondents (39.2%) was aged less than 20, followed by those
that consumers’ store patronage behaviors across different retail aged between 20 and 30 (33.1%), and those aged between 31 and
store formats such as department stores, specialty stores, mass 40 (18.1%). Almost 43% of the respondents either attended high
merchant stores, Internet websites, and catalogues may vary by school or were high school graduates. However, approximately
their perceived importance of retail store environmental cues. 30% of the respondents did not report their education. Half of the
Furthermore, there is a possibility of existing perceptual varia- respondents’ annual income was $40,000 or less. In addition,
tions within this group as well. Because majority of the Hispanic 37.2% of respondents had lived in the US for 5 years or less and
population consists of immigrants and the numbers of years they 39.0% had lived in the US between 6 and 10 years. Only 18.9% of
lived in the US vary greatly, some may preserve prior learning or them had lived in the US for more than 10 years. The majority of
pre-existing attitudes more than do others. Such variations may the respondents’ (64.5%) country of origin was Mexico.
influence their store patronage behavior. According to the
previous studies, age might be another important determinant 4.2. Instrument
to influence Hispanic consumers’ store patronage behaviors.
Therefore, the following hypotheses were developed: In this study, a structured questionnaire was developed to
collect the data pertaining to Hispanic consumers’ perceived
H2. Consumers’ store patronage behavior across different retail
importance of apparel retail store environmental cues and their
formats will vary by their perceived relative importance of retail
patronage behavior at a particular retail store type. The first
store environmental cues and demographic characteristics of age
section was used to determine the respondents’ perceived
and the number of years lived in the US.
importance of apparel retail store environmental cues. Fourteen
H2-1. Consumers’ patronage behavior at department stores will
vary by their perceived relative importance of retail store Table 1
environmental cues and demographic characteristics of age and Profile of respondents.
the number of years lived in the US.
Frequency Percentage (%)
H2-2. Consumers’ patronage behavior at specialty stores will vary
by their perceived relative importance of retail store environ- Gender
Male 138 41.6
mental cues and demographic characteristics of age and the
Female 166 50.0
number of years lived in the US.
Age
H2-3. Consumers’ patronage behavior at mass merchant stores Under 20 130 39.2
will vary by their perceived relative importance of retail store 20–30 110 33.1
31–40 60 18.1
environmental cues and demographic characteristics of age and 41–50 24 7.2
the number of years lived in the US.
Education
H2-4. Consumers’ patronage behavior toward Internet websites Did not attend high school 28 8.4
Attended high school 56 16.9
will vary by their perceived relative importance of retail store
High school graduate 86 25.9
environmental cues and demographic characteristics of age and Attend some college 32 9.6
the number of years lived in the US. Some college graduate 22 6.6
Post graduate 6 1.8
H2-5. Consumers’ patronage behavior of using catalogues will
Income
vary by their perceived relative importance of retail store Under 20,000 78 23.5
environmental cues and demographic characteristics of age and 20,000–40,000 86 25.9
the number of years lived in the US. 40,001–60,000 22 6.8
60,001–80,000 6 1.8
80,001–100,000 2 0.6
Over 100,000 8 2.4
4. Methodology
Years lived in the USA
0–5 years 124 37.2
4.1. Sampling and data collection
5–10 years 130 39.0
10–15 years 26 7.8
A self-administered structured questionnaire was distributed 15–20 years 24 7.5
to a convenience sample of 400 Hispanic consumers living in a Over 20 years 14 4.4
Southeastern state of the United States. In order to collect data, Country of origin
the researchers first contacted various Hispanic organizations, Mexico 214 64.5
local churches, community English teachers, and retailers who Central America 36 10.9
South America 32 9.6
work directly with Hispanics, and a time was arranged to visit Caribbean 10 3.0
these organizations and professionals for the purpose of admin-
istrating the surveys. After eliminating the surveys that were Note: Percentage do not add to 100% due to missing values.
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items were used to measure respondents’ indication of the characteristics such as age, gender, education, annual household
relative importance of apparel retail store environmental attri- income, country of origin, and years lived in the US.
butes, which were adapted from previous studies (Chen-Yu and The instrument was pre-tested with 54 students. Based on the
Seock, 2002; Eckman et al., 1990; Louviere, 1984; Pan and feedback collected from the pre-test, the instrument was revised
Zinkhan, 2006). They were measured with a 4-point Likert-type to improve the clarity of the questions and to increase the content
scale ranging from not important at all (1) to very important (4). validity of the measurement instrument. The questionnaire was
The response format of this study used a 4-point scale because the developed first in English and then translated to Spanish. Later,
researcher believed that this method may obtain more accurate the Spanish version of the questionnaire was translated back into
responses by deleting the neutral point. The second section of the English to check its validity and reliability. The instrument was
questionnaire was used to determine the respondents’ patronage administered in both English and Spanish.
behavior at each different retail store format when shopping for
clothing items. As discussed earlier in the literature review, the
degree of store loyalty or patronage behavior can be measured by 5. Results
using several variables, and past studies on store loyalty or
patronage behavior have used either one or a combination of A principal component of factor analysis with varimax rotation
these variables for this measurement. Adopted from Pan and was conducted to identify the dimensions of Hispanic consumers’
Zinkhan’s (2006) patronage behavior measurement scale, patron- perceived importance of apparel retail store environmental cues.
age behavior at each of the different retail store format was To set the criteria for the factor analysis, factors with eigenvalues
measured by asking the degree of using a particular retail store greater than 1.0 and items with rotated factor loadings of 0.50 or
format when shopping for clothing items. Respondents were greater were retained because factor loadings of 0.50 or greater
asked to indicate on a 4-point Likert scale (1 ¼ not at all; 4 ¼ very are considered statistically and practically significant (Hair et al.,
much) how often they shop for their clothes at five different retail 1998). To ensure that each factor would have only one dimension,
formats, which included department stores, specialty stores, mass any items loading on more than one factor with a loading score
merchant stores, Internet websites, and catalogues. In this study, equal to or greater than 0.40 on each factor were eliminated from
each different apparel retail store type was defined by the the analysis. In addition, because communality of a variable
definition provided by Keiser and Garner (2008). Department store represents the amount of variance in the factor solution explained
was defined as a retail store that provides a variety of product by that variable (Hair et al., 1998), variables with communalities
lines, including apparel for men, women, and children; soft goods less than 0.40 were deleted for reasons of insufficient contribution
such as sheets and towels for the home; and home furnishings to explain the variance. Variables that did not meet the above
such as furniture and kitchenware in a range of prices near the criteria were excluded from the analysis. Of the total 14 items, 11
middle to upper price point. Based on the definition of department items of apparel retail store environmental cues were retained
store, the researcher investigated department stores in the area of for the factor analysis and three constructs were identified
the present study, which met the criteria of the definition. (i.e., Convenience, Physical Atmosphere, and Customer Service) (see
Businesses such as Macy’s, Belk, Sears, JCPenney, Kohl’s, Dillard’s, Table 2). All three factors of apparel retail store environmental
Nordstrom, etc. were given as examples of department stores. cues had alpha values for reliability estimates greater than 0.7.
Specialty store was defined as an apparel-focused specialty stores Thus, Hypothesis 1 was supported. Of the three factors,
that carry a specific brand’s product line. Based on the definition Convenience received the highest mean value (m ¼ 3.22),
of specialty store by Keiser and Garner (2008) and a study of followed by Physical Atmosphere (m ¼ 2.80) and Customer Service
apparel specialty stores doing business in the area of this study, (m ¼ 2.72).
apparel retail stores such as Gap, Old Navy, American Eagle, In order to assess the influence of perceived importance of
New York & Co., Ann Taylor Stores, Talbots, Aeropostale, J.Crew, L.L. apparel retail store environmental cues and demographic char-
Bean, Eddie Bauer, etc. were provided as examples of apparel acteristics (i.e., age and the number of years lived in the US) on the
specialty stores. Mass merchant store was defined as a retail store use of a particular retail store format when shopping for clothing
that specializes in selling great quantities of merchandise at lower items, hierarchical multiple regression analyses using the enter
prices, such as Wal-Mart, Target, etc. The last section of the method were conducted. Five separate hierarchical multiple
questionnaire inquired about the respondents’ basic demographic regression analyses were implemented for each different retail

Table 2
Apparel retail store environment constructs.

Shopping orientation factors Item Factor loading Variance explained (%) Cronbach alpha

Total 69.23 0.89

Convenience (m ¼ 3.22) Convenient shopping hours 0.82


Easy to find what I am looking for 0.81 26.75 0.85
Convenience of store location 0.79
Pleasant dressing rooms 0.70

Physical atmosphere (m ¼ 2.80) Nice window display 0.78


Attractiveness of store layout 0.71 21.62 0.78
Nice product display in the store 0.70
Music played at the stores 0.62

Customer service (m ¼ 2.72) Salesperson’s assistance 0.82


Store reputation/store image 0.76 20.86 0.80
Flexible return/exchange policies 0.69

m: mean value.
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Y.-K. Seock / Journal of Retailing and Consumer Services 16 (2009) 329–339 335

store format. Three dimensions of retail store environmental cues number of years lived in the US positively influenced frequency
were first entered into the regression equation as a group and of shopping at department stores.
then two demographic characteristics (i.e., age and the number of In predicting the degree of using specialty stores for shopping
years lived in the US) were entered into the equation. In this way, clothing items, the regression model was significant, with
the correlations between retail store environmental cues and F (3, 314) ¼ 90.85 and po0.001, and explained 61% of the variance
demographic characteristics were partialled out of the regression in Hispanic consumers’ use of specialty stores (see Table 3).
analyses, allowing the researcher to determine the incremental Hypothesis 2-2 was supported. The test of the relative contribu-
effects of demographic characteristics over retail store environ- tions of the independent variables to explain shopping frequency
mental cues in predicting store patronage behavior. The degree of at specialty stores revealed that Customer Service (b ¼ 0.81,
using each store type (i.e., department stores, specialty stores, po0.001) was the strongest and one of the most significant
mass merchants, Internet, and catalogue) was entered as a predictors of their frequent use of specialty stores. Convenience
dependent variable. (b ¼ 0.01, po0.05) was another significant predictor, but with a
Multicollinearity was first assessed because multicollinearity negative relationship. Although overall regression model was
among the independent variables may be a threat to the significant, none of the demographic characteristics used in the
interpretation regarding the influence of the independent vari- study, neither age nor the number of years lived in the US,
ables on the dependent variables in the regression analyses. When predicted shopping frequency at specialty stores.
the researchers checked the multicollinearity among the inde- For the degree of using mass merchant stores, the regression
pendent variables, the Pearson Correlation matrix indicated no model was significant, with F (3, 314) ¼ 41.82 and po0.001, and
multicollinearity because all of the correlation coefficients did not explained 42% of the variance in Hispanic consumers’ use of mass
exceed the cut-off value of 0.7 (Ott and Longnecker, 2001). merchant stores (see Table 3). Thus, Hypothesis 2-3 was
Multicollinearity was also examined by the ratio of the largest to supported. Customer Service (b ¼ 0.63, po0.001) was the stron-
the smallest eigenvalue, which is called the condition number of gest and a significant predictor of frequent use of mass merchant
the correlation matrix. The condition numbers presented in the stores. However, none of demographic characteristics used in the
Pearson Correlation matrix table ranged from 1 to 19.25, which study were significant in predicting shopping frequency at mass
was not greater than the cut-off score of 1000. Thus, no merchant stores.
multicollinearity was found in this study. When the degree of For the degree of using Internet websites, the regression model
using five different retail store formats was first examined, was significant, with F (3, 310) ¼ 6.31 and po0.001, representing
Hispanic consumers used the department stores most frequently 10% of the variance in Hispanic consumers’ use of Internet
(m ¼ 2.80), followed by mass merchant stores (m ¼ 2.76) and websites (see Table 3). Hypothesis 2-4 was supported. Among
specialty stores (m ¼ 2.71). Internet website (m ¼ 1.39) was the three retail store environmental cue variables, Physical Atmosphere
least frequently used retail format for Hispanic respondents. (b ¼ 0.20, po0.01) was the strongest and a significant predictor of
In predicting the degree of using department stores when respondents’ frequent use of Internet websites. Both age
shopping for clothing items, the regression model was significant, (b ¼ 0.16, po0.01) and the number of years lived in the US
with F (3, 314) ¼ 97.86 and po0.001, indicating that 63% of the (b ¼ 0.22, po0.001) were significant in predicting Hispanic
variance in shopping frequency at department stores was consumers’ use of Internet websites for shopping apparel items,
explained by the three retail store attribute constructs and but they were a negative influence.
two demographic variables (see Table 3). Thus, Hypotheses In predicting the degree of using catalogues for shopping
2-1 was supported. The test of the relative contributions of clothing items, the regression model was significant, with
independent variables to explain Hispanic consumers’ use of F (3, 312) ¼ 5.00 and po0.001, explaining 8.0% of the variance
department stores showed that Customer Service (b ¼ 0.77, in use of catalogues. When three dimensions of retail store
po0.001) was the strongest and a significant indicator of environmental cues were first entered into the regression
shopping frequency at department stores. Among two equation as a group, this first regression model was not
demographic variables, the number of years lived in the US significant, indicating none of the retail store environmental cue
(b ¼ 0.08, po0.05) appeared significant in predicting the degree variables predicted Hispanic consumers’ use of catalogues (see
of using department stores. Both Customer Service and the Table 3). Later, two demographic characteristics (i.e., age and the

Table 3
Hierarchical regression analyses results.

Variables Department stores Specialty stores Mass merchant stores Internet websites Catalogues (m ¼ 1.57)
(m ¼ 2.80) (m ¼ 2.71) (m ¼ 2.76) (m ¼ 1.39)

Model 1(b) Model 2 (b) Model 1 (b) Model 2 (b) Model 1 (b) Model 2 (b) Model 1 (b) Model 2 (b) Model 1 (b) Model 2 (b)

Convenience 0.02 0.01 0.10 0.10 0.09 0.10 0.18 0.14 0.15 0.13
Physical Atmospherics 0.01 0.01 0.03 0.03 0.03 0.03 0.20 0.20 0.04 0.04
Customer Services 0.78 0.77 0.80 0.81 0.63 0.63 0.08 0.11 0.05 0.01

Number of years lived in the USA 0.08* 0.07 0.01 0.16 0.20
Age 0.06 0.03 0.02 0.22 0.15

R2 0.62 0.63 0.61 0.61 0.42 0.42 0.04 0.10 0.03 0.08
F 157.48 97.86 148.74 90.85 70.03 41.82 3.32 6.31 2.15 5.00

Note: Independent variables: Merchandise/Convenience, Customer Service, Physical Atmosphere.


Dependent variables: Department Stores, Specialty Stores, Mass Merchant Stores, Internet Websites, Catalogues.
b: Standardized coefficient.
 po0.05.
 po0.01.
 po0.001.
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Table 4
Multivariate analyses of variance for retail store patronage across different retail formats.

Effects Retail store patronage Means Mean square df F

Number of years lived in the USA (years) 0–5 Over 5–10 Over 10
MANOVA-Pillai’s Trace – 10 3.74
Univariate F tests
Department stores 2.53a 2.89b 2.93b 5.15 2 7.21
Specialty stores 2.61 2.81 2.63 1.31 2 1.50
Mass merchant stores 2.68 2.82 2.67 0.81 2 0.90
Internet websites 1.54a 1.28b 1.30b 2.44 2 4.60
Catalogues 1.76a 1.50b 1.33b 4.18 2 6.87

Age Under 20 20–30 Over 30


MANOVA-Pillai’s Trace 10 3.83
Univariate F tests
Department stores 2.60a 2.74b 3.00c 3.90 2 5.28
Specialty stores 2.57 2.80 2.72 1.61 2 1.77
Mass merchant stores 2.66 2.80 2.77 0.59 2 0.68
Internet websites 1.63a 1.30b 1.26b 4.58 2 8.25
Catalogues 1.74a 1.58b 1.39b 3.09 2 4.92

a,b,c
Variation represents a significant difference among groups; a consistent superscript represents no significant difference between groups.
 po0.05.
 po0.01.
 po0.001.

number of years lived in the US) were entered into the equation, received the highest mean value, followed by Physical Atmosphere
then the overall model was significant. Thus, Hypothesis 2-5 was and Customer Service. This result suggests that when Hispanic
partially supported. Both age (b ¼ 0.20, po0.01) and the consumers shop for clothing items, they place the highest
number of years lived in the US (b ¼ 0.15, po0.05) were importance on the convenience of the store’s location, shopping
significant, but negatively influenced shopping via catalogue, hours and store layout, and pleasant dressing rooms. However,
implying that shopping from catalogues decreases when age and results of this study also suggest that they value nice store
the number of years in the US rises. displays (e.g., informative, entertaining, and neat displays) with
Pillai’s Trace multivariate analyses of variance (MANOVA) was music playing at the store, as well as customer service aspects
used to identify the differences of retail store patronage behavior such as assistance from the sales associates and store policies that
in relation to the number of years that the respondents lived in allow for exchanging and returning items.
the US and their age (see Table 4). Pillai’s criterion was used to test When examining the degree of using five different retail store
for significance because it is more robust than other multivariate formats by comparing the mean values, Hispanic consumers
test criteria (Hair et al., 1998). The results of the MANOVA test used department stores most frequently, followed by mass
supported the results of hierarchical regression analysis merchant stores and specialty stores. As discussed earlier in the
conducted in the study to test the hypothesis, showing that the literature review (May, 1981), consumers may be involved in
participants’ shopping frequency at each different shopping multiple activities when shopping and may make their store
channel significantly varied by the number of years that they selections accordingly. Thus, the proximity to other shopping
lived in the US and age (see Table 4). The results showed that the facilities might be one of the possible determinants of consumer
respondents’ shopping frequency at department stores, Internet store choice and their patronage behaviors to the store. One
websites, and catalogues were significantly different based on the possible reason for Hispanic consumers’ more frequent use of
number of years lived in the US and age. Univariate F tests showed department stores and mass merchant stores than other types
that the respondents who lived in the US for 0–5 years shopped at of retail formats is that department stores and mass merchant
department stores significantly less often than the other two stores carry a wide variety of product categories beyond apparel
groups, but had significantly higher shopping frequency on the items, so consumers can accomplish multiple purposes of their
Internet websites and catalogues than others (see Table 4). The shopping trip by visiting one place. This result is not consistent
results also showed that young Hispanic consumers who were with the report released by Cotton Incorporated’s Lifestyle
aged under 20 shopped significantly less at department stores Monitor (2005a), indicating that Hispanics tend to most fre-
than older shoppers, but more frequently shopped via Internet quently shop at specialty stores. The result also shows that
and catalogues than the other age groups. Internet website was the least frequently used retail format
for Hispanic respondents. Enabling consumers to obtain informa-
tion for potential purchases as well as making actual purchases,
6. Discussion and implications the Internet has become a major shopping channel. However,
the Internet might be the least effective channel in reaching
The present study examined the influence of Hispanic Hispanic consumers. Considering Hispanic consumers’ lower
consumers’ perceived importance of retail store environmental average income level when compared to the national average
cues and two demographic characteristics (i.e., age and the income, low computer ownership among Hispanic consumers
number of years lived in the US) on their store patronage behavior might be one reason that Hispanics tend not to shop for clothes
across various retail store formats. The results support the overall online. Another possible reason why Hispanic consumers do not
models of regression analyses testing the relationships between use the Internet as a major shopping channel could be due to a
aforementioned variables. The exploratory factor analysis of retail language barrier; most Internet websites offer information only in
store attributes identified three dimensions: Convenience, Physical English, while many Hispanics are more comfortable with
Atmosphere, and Customer Service. Of the three factors, Convenience information in Spanish. By offering their websites in Spanish,
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Y.-K. Seock / Journal of Retailing and Consumer Services 16 (2009) 329–339 337

retailers may be able to multiply the effectiveness of selling of Internet websites when shopping for clothing items. The result
products online. also showed that Physical Atmosphere was positively related to the
Five separate hierarchical regression analyses were conducted degree of using Internet websites. The findings of the study
to examine the influence of Hispanic consumers’ perceived suggest that Hispanic consumers who place high importance on
importance of apparel retail store environmental cues and two the physical atmosphere of a retail store, such as window display,
demographic variables on the degree of using five different retail store layout, product display, and music playing at the store, tend
store formats when shopping for clothing items. In this study, frequently to visit Internet websites when shopping for clothing
Customer Service appeared as the strongest and most significant items. Thus, applying physical atmospheric cues from the
environmental cue in the respondents’ use of traditional brick- traditional retail stores to Internet websites, thus creating a
and-mortar retail stores, including department stores, specialty visually appealing Internet website design with well organized
stores, and mass merchant stores, when shopping for clothing product display and music playing online, might be crucial for
items. The results of the study support the previous findings that apparel retailers to increase Hispanic consumers’ repeat visits to
suggest the significant influences of customer service aspects, websites when shopping for clothing items.
such as salespeople, in-store service and store reputation and Between the two demographic variables, the number of years
image, on store patronage behavior (Bearden, 1977; Louviere, lived in the US predicted Hispanic consumers’ use of department
1984; Thang and Tan, 2003). That is, customer service aspect is stores, Internet websites, and catalogues for shopping apparel
one of the most important retail store environmental cues in items. The longer the respondents lived in the US, the more they
determining both general US consumers and Hispanic consumers’ tended to shop at department stores. However, the number of
store patronage behavior. However, being different from general years lived in the US negatively influenced the use of Internet
US consumers, the results of the study suggest that customer websites and catalogues. For those who just arrived in the US,
service is the key environmental cue for Hispanic consumers’ communication with the people in the store and transportation
frequent visits to the brick-and-mortar apparel retail stores, might be critical deterrents in going out for shopping. Thus, it
regardless of the store format. The findings also imply that might be easier for them to stay home and place orders online or
employees’ attitudes toward their customers and store policies are through the catalogues. Considering the language barrier for those
crucial to Hispanic consumers’ frequent or repeat visits to apparel who just arrived or lived only for a short period of time in the US,
retail stores when shopping for clothing items. These findings apparel retailers need to consider offering their websites or
could provide fundamental guidelines for department, specialty, catalogues in Spanish to encourage those consumers to shop
and mass merchant store executives and managers who attempt through those channels. This strategy also will be of help in
to resurrect or improve their retail store’s environment in order to attracting other Hispanic consumers because Hispanics, in
attract Hispanic consumers. Sales personnel’s attitude and general, prefer Spanish in their shopping environment and often
manner toward their customers, as well as their knowledge read only Spanish (MarketingVOX, April 06, 2006). Age was
regarding the products on sale, might be of great importance in another significant predictor in using Internet websites and
encouraging Hispanic customers’ repeat visits to the store and catalogues for shopping clothing items. Age negatively influenced
eventually insuring purchase behavior at the store. To attract the frequency of shopping via Internet and catalogues. This result
Hispanic consumers to their stores, apparel retail stores should is understandable in that young people are more technology savvy
provide more personal assistance with services such as ushering, than older people, and technology and the media are significant
locating items, explaining functions and uses of products, and parts of their lifestyle (Harris Interactive, 2004). The results of this
carrying preferred products for them. Thus, hiring sales associates study suggest that Hispanic consumers who lived in the US for a
who can speak Spanish could help attract more Hispanic comparatively short period of time and young people under age
consumers to the store because Spanish-speaking sales associates 20 are the major users of Internet websites and catalogues as
may be better equipped to communicate effectively with some shopping channels. However, they are vulnerable consumers in
Hispanic consumers. In addition, they should offer flexible store terms of their living circumstances and age. Considering the
return and exchange policies in Spanish because they prefer prevalence of Internet shopping and the potential for its future
Spanish in their shopping environment and often read only growth, apparel retailers should provide a safe shopping environ-
Spanish (MarketingVOX, April 06, 2006). They also need to ment via the Internet and catalogues in order to protect these
consider the convenience of their store location, and offer consumers. For example, possible dangers and risks related to
convenient shopping hours. By doing so, they may be able to give online and catalogue shopping such as fraudulent credit card
their retail stores a unique and positive image and, thus, appeal payments and privacy issues should be explained in Spanish on
strongly to this group of consumers. the websites and catalogues. In addition, safe and secure shopping
In addition, Convenience was significantly, but negatively guides such as keeping a record of transactions and checking the
related to the respondents’ use of specialty stores for shopping limit of a credit line before using it could accommodate sound
clothing items, suggesting that Hispanic consumers who place consumption pattern.
high importance on the convenience features of retail stores do The results of this study, focused on Hispanics, are consistent
not tend to shop frequently at specialty stores. This finding with earlier studies of the influence of retail store environment on
implies that they may perceive specialty stores as less convenient store patronage behavior (Bearden, 1977; Donovan and Rossiter,
than department stores and mass merchant stores, possibly due to 1982; Louviere, 1984; Mazursky and Jacoby, 1986; Thang and Tan,
the limited product categories carried by the specialty stores. This 2003). This study has practical implications for apparel retailers
finding is understandable when considering the mean scores for regarding how to position their stores and how to allocate their
the degree of visiting different retail store formats in the earlier resources in creating attractive and optimized apparel retail store
discussion, which suggests that Hispanic consumers use the environments in different retail store formats in order to attract
department stores and mass merchant stores more frequently Hispanic consumers. The findings from the study could serve as an
than specialty stores. important benchmark for retailing strategy, and retailers will be
Although the lowest mean score of the degree of using Internet able to effectively redesign their retail stores to attract Hispanic
websites suggests that this retail format might be the least consumers and eventually increase sales. As the results of this
effective shopping channel to reach Hispanic consumers, Physical study suggest a strong and significant influence of customer
Atmosphere appeared as a significant predictor of the frequent use service aspects on Hispanic consumers’ store patronage behaviors
ARTICLE IN PRESS
338 Y.-K. Seock / Journal of Retailing and Consumer Services 16 (2009) 329–339

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