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Page 1: 10120130406004

International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online),

Volume 4, Issue 6, November - December (2013)

21

ANTECEDENTS OF CUSTOMER SATISFACTION IN A RETAIL STORE

ENVIRONMENT AND ITS IMPACT ON TIME SPENT AND IMPULSE

BUYING

Dr. Bidyut Jyoti Gogoi

HOD (Department of Marketing; Research & FDP),

Indira School of Business Studies, Wakad, Pune

ABSTRACT

Changing customer needs and demands has made the retail environment highly competitive. The

growing number of organized retail outlets has even made the competition tougher than ever. The

various options available for the customers to shop have made them less loyal to any particular retailer.

At this point of time it becomes mandatory for the retailer to focus more on the Customer Satisfaction to

increase the sales revenue and also to make them loyal.

In this paper the researcher talks about the antecedents of Customer Satisfaction and its impact on

Time Spent by the customer in the retail outlet and Impulse Buying. Thus the author intends to say that

components of crowding viz. Human Crowding and Spatial Crowding may each have an impact on

Customer Emotions like Pleasure, Arousal and Dominance. These emotions Pleasure, Arousal and

Dominance may have a positive or a negative impact on the Customer Satisfaction. The Customer

Satisfaction may in turn have a positive or negative impact on the Time Spent on the retail outlet and

Impulse Buying.

Keywords: Arousal, Customer Satisfaction, Dominance, Human Crowding, Impulse Buying, Pleasure,

Spatial Crowding, and Time Spent.

INTRODUCTION

Retailers work on very small margins. The more the sales revenue the more will be the profit

margin. In order to increase the revenue the retailers have to pull in more crowds to the retail outlets.

More crowds will be pulled to the retail outlet if the customer likes the place, is accessible, convenient,

stores the products of customer’s choice and has a wide assortment of products.It is very important to the

retailer to increase the value of the elements in the retail value chain to pull in more customers. The more

the total satisfaction offered by the retailer the more will be the customer loyalty. In short the customer

will shop again in the retail outlet if he/she is totally satisfied.

INTERNATIONAL JOURNAL OF MANAGEMENT (IJM)

ISSN 0976-6502 (Print)

ISSN 0976-6510 (Online)

Volume 4, Issue 6, November - December (2013), pp. 21-35 © IAEME: www.iaeme.com/ijm.asp

Journal Impact Factor (2013): 6.9071 (Calculated by GISI)

www.jifactor.com

IJM © I A E M E

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Volume 4, Issue 6, November - December (2013)

22

In this paper the researcher intends to find out the impact of antecedents of Human behaviour viz.

crowding, emotional responses, and customer satisfaction on the time spent and impulse purchase made

by the customer.

Crowding is the presence of a high density of people per unit of space.However, in a supermarket

high density may impede mobility and decrease shop efficiency. The degree to which time effectiveness

is altered becomes important to the shopper. Desor (1972, p. 79) has stressed the interpersonal

determinantsof crowding by defining "being crowded'' as"receiving excessive stimulation from social

sources."The amount of total stimulation from boththe physical and the social environment affect the

individual's perception of a situation. The "richness of environmental resources" (Zlutnick and Altman,

1972) is definitely a factor.

Crowding can be of two natures, human crowding and spatial crowding. Emotional responses are

pleasure, arousal and dominance. Crowding effects the emotions of the customer by having a positive or

negative effect on pleasure and arousal and dominance. The emotions may in turn positively or

negatively impact the customer satisfaction level. The outcome of customer satisfaction is the amount of

time spent and impulse purchase made by the customer.

LITERATURE REVIEW

Customer satisfaction is dependent on several factors like crowding and emotional responses of

the customers. Crowding is a psychological perception which involves several environmental

variablesand individualistic variables with space constraints. Research findings suggest that crowding is

a functionof the situation including the difficulty of the task (Stokols, 1972); the amount of interpersonal

stimulation and interaction (Desor, 1970) (Ziutnlck and Altman, 1972); the individual's personal

characteristics such as aggressiveness (Stokois, et al., 1973); and the individual'sprevious experience and

expectations in the situation (Zlutnick and Aitman, 1972). Moreover, thepresence of these conditions

results in informationoverload, confusion, and frustrated goal seeking (Proshansky, et al., 1972). This

gives rise to a situation which may motivate or demotivate the customer shopping in the store.

Several studies (Stokols, 1976; Stokols, Rau, Pinner, &Schopler, 1973; Zlutnik& Altman,1972)

indicated that when the environments restrict or interfere with one’s activity, theindividual perceives

crowding. Thus, crowding can be said to result from a combinationof the perceived physical, social, and

personal factors and the interplay of these factorseven make the individual more sensitive to actual or

potential problems that may arisefrom scarce space (Stokols, 1972). It means that crowding results from

both the densitystimuli and personal perception to the environment (Stokols, 1972). Extending

theconcept, the empirical studies (Harrell et al., 1980; Machleit et al., 1994) identified twodimensions of

perception of crowding, human crowding and spatial crowding. Humancrowding refers to a closed,

confined feeling experienced from high human density andspatial crowding refers to feelings of restricted

physical body movement due to highspatial density.

The physical environment is an important element to evoking feelings of crowding orcrowding

stress (Eroglu& Harrell, 1986; Harrell et al., 1980). The physical environment, within the retailing

context, refers to the store layout, which are the arrangement of theamount and the size of merchandise

and fixtures within a given space (Berman &Evans, 1992). Appropriately allocating floor space for

fixtures, product groupings,traffic flow, department locations, and the space for merchandise can

contribute to anindividual’s sense of privacy, and was a major consideration for store managers

inreducing shoppers’ perceptions of crowding (Greenbaum&Greenbaum, 1981). Themain purpose of the

store layout design is to provide customers an adequate space tonavigate and shop easily (Levy &Weitz,

2001). Another purpose is to control trafficflow on the selling floor (Hasty & Reardon, 1996). The

influence of these layoutpatterns on perceived store crowding depends on their density levels, height of

fixtures,type of merchandise, and function of the displays.Since spatial crowding perceived by shoppers

may result from the combined feeling ofcrowding experienced when one shops at different areas of the

store plus the feelingevoked by the height of the ceiling and the lighting of the store, it is important

toinclude the impact of spatial crowding that is measured at various locations of the storesuch as grid

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International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online),

Volume 4, Issue 6, November - December (2013)

23

layout area, free-flow area, aisle table area, and cash register area and bythe effect of ceiling height and

lighting.

In an environmental research study, Stokols (1972) suggested that perceived crowdingunder a

dense setting can create tension as well as arousal.Pleasure is defined as the degree to which an individual

feels happy and joyful in aplace. Arousal is the degree to which an individual feels excited and stimulated

in thesituation.Dominance is the degree to which an individual feels free to act, or in controlof the

environment. Donovan and Rossiter (1982) tested the model of Mehrabian and Russell (1974) in a retail

setting and found that the pleasure and arousal dimension hada strong effect on customer behavior.

However, others argued that the results maydepend on environmental stimuli and the type of retail setting

(Turley & Milliman,2000; Yalch&Spangenberg, 1990). In marketing literature, these three emotions are

consideredto be important emotions conducive to positive shopping behavioral outcomes.Empirical

research in a service setting has shown that when the environment iscrowded, customers will experience

feelings of stress (Hui& Bateson, 1991) or lessexcitement (Wakefield & Blodgett, 1994). Furthermore,

the feeling of congestion maynot only evoke some emotional responses, but may also influence shoppers’

shoppingbehavior. All of these studies suggest that store environments, such as crowding, can havea

strong influence on the emotion that shoppers may experience and then, the consumer’sapproach would

become avoidance behavior. Stokols (1972) suggested that perceivedcrowding cannot only affect a

pleasure response but also cause tension and affectarousal in dense settings. Hence, both perceived

human crowding and perceived spatialcrowding may cause negative feelings for shoppers and hinder

their shopping activities.

Most research studies have used customer satisfaction as an evaluative judgment regardinga

purchasing experience (Oliver, 1993; Oliver & Swan, 1989; Oliver & Westbrook, 1993; Westbrook &

Oliver, 1991).Eroglu and Machleit (1990) and Eroglu and Harrell (1986) suggested that the perception of

crowding is an important store attribute that may affectcustomer satisfaction with the retail environment.

Hui and Bateson (1991) showed thatperceived crowding decreases feelings of pleasure in a service

environment. Theseunpleasant emotions that resulted from a shopping experience may influence

consumer satisfaction (Oliver, 1993; Machleit et al., 1994).The level of excitement experienced by

customers has a direct effect on consumer satisfaction. Machleit and Mantel (2001) found that the effect

of emotions on shoppingsatisfaction depends on the shopper’s perceived control over the shopping

experience.In a study on leisure service settings, Wakefield and Blodgett (1994) found that the feelingsof

crowding adversely affected the level of excitement experienced by shoppers. Machleit et al. (2000)

argued that these emotions can partially mediate the perceptionof crowding–satisfaction relationships.

Hence, it is expected that a positive relationshipexists between the level of the emotions of pleasure,

arousal, and dominance and thatof the feelings of satisfaction that shoppers may experience at the store

during shopping.

In research on the urban experience, Milgram (1970) found that an individual mustreact to the

excessive stimulus in order to function effectively in a given environment.This concept implies that

several adaptive processes could occur in response to crowdedconditions. Harrell et al. (1980), Eroglu

and Machleit (1990), and Machleit and Eroglu (2000) found that the level of store crowding perceived by

consumers duringshopping affected their overall shopping activity. Therefore, how shoppers cope

withcrowded retail environments depends on how perceived crowding is interpreted. The researcher

studies two behavioral outcomes that may directly result from the perception of crowding: (a) time spent

in the store, and (b) impulse buying.

Many researchers have manipulated environmental variables and measured the time

consumersspent in retail settings. Yalch and Spangenberg (1990) reported that the style ofmusic in the

store influenced the time that shoppers spent in the store, but Herrington (1996) found no relationship

between time and the music tempo. Besides music, studiesof other variables associated with time spent in

a store include color (Bellizzi& Hite,1992) and lighting (Areni& Kim, 1994). Lighting was found to have

no influence onthe time spent in the store. As for the research on the crowding variable, a focus group

interview (Eroglu& Harrell, 1986) also indicated that in a crowded store customersspent less time on

shopping. According to Milgram’s (1970) research on a city environment, one adaptive mechanism

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International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online),

Volume 4, Issue 6, November - December (2013)

24

activated by overload output in an environment was thatpeople allocate less time to each stimulus input.

Thus, the attempt at reducing shoppingtime in a crowded place might be one of the shoppers’ behaviors

resulting from thefeelings of restraint and stress caused by limited space in the store.

An impulse purchase, by definition, is an unplanned purchase (Bellenger, Robertson,

&Hirschman, 1978; Cobb & Hoyer, 1986). Rook (1987) addressed impulse buying as ashopping

experience with a sudden urge to buy something immediately. Beatty andFerrell (1998) extended this

concept of impulse buying to include buying with no pre-shoppingintentions to do so.The literature

suggests that perceived crowding can affect consumer emotions in are tail setting (Hui& Bateson, 1991;

Machleit et al., 2000), and consumer emotions influenceshopping behaviors in a number of different

ways, including impulse purchasing (Gardner &Rook, 1988; Rook, 1987). The feeling of an urge to buy

is reinforced in a crowded placewhere the atmosphere is exciting. Many impulse purchases are then made

by shopperswith the feeling of joy and excitement. Donovan and Rossiter (1982) also found that

pleasurewas positively associated with overspending in the shopping environment.In all these approaches

it is recognized that a shopper’s perception of crowding and hisemotional response in a retail

environment affect his desire to spend time in the store.Shoppers who try to shorten shopping time in

crowded places tend to rely on shoppinglists, avoid delay by unnecessary purchases (Jarboe& McDaniel,

1987), avoid approachingthe aisle tables, or abandon impulse buying. In addition, it seems reasonable to

assumethat emotional responses may mediate the relationships between crowding and thesebehavioral

outcomes. Thus, it is anticipated that there is a positive relationship betweenthe level of satisfaction

shoppers experienced at the store and their behavioral outcomesof time spent in the store, and impulse

buying.

The researcher in this study has taken reference for developing the concepts from the research

done by LiJiunn-GerTony, Kim Jai-Ok Lee So Young in May 2009.

THE CONCEPTUAL PROPOSED MODEL

Crowding Emotion Satisfaction Outcomes

Time Spent Pleasure

Human

Crowding

Satisfaction Arousal

Spatial

Crowding

Impulse

Buying Dominance

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25

Hypotheses:

H1: Human crowding and spatial crowding has a positive impact on pleasure, arousal and

Dominance.

H2: Pleasure, arousal and dominance has a positive impact on satisfaction.

H3: Satisfaction has a positive impact on the time spent and impulse buying.

Objectives

1. To find out if human crowding has an impact on the time spent and impulse buying

2. To find out if spatial crowding has an impact on the time spent and impulse buying

Research Methodology

Type of Research: Descriptive Research

Sampling Universe: Consumers in Pune

Sampling Method: Non-probabilistic Judgmental Sampling

Sampling Unit: Consumers

Sample Size: 480

Measurement: A structured questionnaire was used to capture the

responses of the consumers.

The responses were analyzed using SPSS. Correlation tests were used to test the hypotheses.

VARIABLES AND MEASUREMENT OF VARIABLES

All the variables are measured using a five point likert’s scale, 1 denoting Strongly Disagree

and 5 denoting Strongly Agree.The scales used in this study were taken from the research done by

LiJiunn-GerTony, Kim Jai-Ok Lee So Young in May 2009.

Human crowding (HC) is measured using three statements HC1, HC2 &HC3. (see Appendix

Table A), Spatial crowding (SC) is measured using three statements SC1, SC2 &SC3(See Appendix

Table A), Grid layout area (GLA)is measured using four statements GLA1, GLA2, GLA3&GLA4

(see Appendix Table A), Free-flow layout area (FLA) is measured using four statements FLA1,

FLA2, FLA3& FLA4 (See Appendix Table A), Aisle table area (ATA) is measured using four

statements ATA1, ATA2, ATA3&ATA4 (See Appendix Table A), Cash register area (CRA)is

measured using four statements CRA1, CRA2, CRA3&CRA4 (see Appendix Table A), Ceiling and

lighting (CL) is measured using three statements CL1, CL2& CL3 (See Appendix Table A).

Pleasure is measured using two statements PL1 & PL2 (See Appendix Table A), Arousal

(AR) is measured using one statement AR1 (see Appendix Table A), Dominance (DO) is measured

using two statements DO1 & DO2 (See Appendix Table A).

Satisfaction is measured using three statements SAT1,SAT2&SAT3 (See Appendix Table A).

Time spent is measuredusing two statements TS1 &TS2 (See Appendix Table A), Impulse buying

(IB) is measured using three statementsIB1, IB2& IB3 (see Appendix Table A).

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Volume 4, Issue 6, November - December (2013)

26

DATA ANALYSIS

Key Statistics

Table 1 Fig. 1

56.7% of the respondents are in the age group 18 to 29 years, 40% of the respondents are in

the age group 30 to 49 years and 3.3% of the respondents are in the age group 50 to 59 years.

Table 2 Fig. 2

67.5% of the respondents are male and 32.5% of the respondents are female.

Table 3 Fig. 3

25% of the respondents have an annual income of less than 1 LPA, 18.3% of the respondents

have an annual income of 1 to 3 LPA, 45% of the respondents have an annual income of 3 to 6 LPA,

10% of the respondents have an annual income of 6 to 9 LPA, 1.7% of the respondents have an

annual income of above 9 LPA.

Age Percent

18-29 yrs 56.7

30-49 yrs 40.0

50-59 yrs 3.3

60 yrs and above 0.0

Total 100.0

Gender Percent

Male 67.5

Female 32.5

Total 100.0

Annual Income Percent

< 1 LPA 25.0

1-3 LPA 18.3

3-6 LPA 45.0

6-9 LPA 10.0

9 LPA and above 1.7

Total 100.0

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Volume 4, Issue 6, November - December (2013)

27

Table 4 Fig.4

53.3% of the respondents are married and 46.7% are unmarried.

Table 5 Fig 5

Occupation wise, 18.3% of the respondents are student, 13.3% are part-time, 46.7% are Full-

time, 11.7% are retired, and 10% are self-employed.

Table 6 Fig 6

23.3% of the respondents said purpose of visit were to avail discounts, 18.3% for bulk

shopping, 21.7% for family outing, 28.3% for purchase and 8.3% for window shopping.

Marital Status Percent

Married 53.3

Unmarried 46.7

Total 100.0

Profession Percent

Student 18.3

Part-time 13.3

Full-time 46.7

Retired 11.7

Self-Employed 10.0

Total 100.0

Purpose of Visit Percent

Avail Discounts 23.3

Bulk Shopping 18.3

Family Outing 21.7

Purchase 28.3

Window Shopping 8.3

Total 100.0

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Table 7 Fig. 7

3.3% of the respondents said the average purchase size is less than Rs. 500, 16.7% said

Rs.500 to Rs.999, 26.7% said Rs. 1000 to Rs. 1999, 35% said Rs. 2000 to Rs 2999, 18.3% said more

than Rs. 3000.

RELIABILITY TEST

Test of reliability for the data used is as follows:

Table 8. Reliability Statistics

Parameters Cronbach's Alpha No. of Items

Overall Reliability 0.896 38

HC 0.578 3

SC 0.820 22

PL 0.615 2

DO 0.761 2

SAT 0.690 3

TS 0.696 2

IB 0.652 3

From the table 8, it is seen that the value of Cronbach’s Alpha of 0.896 of overall reliability

of the scales used shows that the data is reliable. The individual value of Cronbach’s Alpha for all

the parameters HC (0.578), SC (0.820), PL (0.615), DO (0.761), SAT (0.690), TS (0.696) and IB

(0.652) also are greater than 0.50 which shows that the data used is reliable.

Average Purchase

Size (Rs.) Percent

< 500 3.3

500-999 16.7

1000-1999 26.7

2000-2999 35.0

> = 3000 18.3

Total 100.0

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International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online),

Volume 4, Issue 6, November - December (2013)

29

RELATIONSHIP TESTING Table 9. Test of Correlation

Correlations

HC SCN PL AR1 DO SAT TS IB

HC Pearson Correlation 1 .248** .015 .114* -.023 .034 .077 .154**

Sig. (2-tailed) .000 .748 .012 .621 .456 .094 .001

SCN Pearson Correlation 1 .490

** .214

** .568

** .630

** .571

** .520

**

Sig. (2-tailed) .000 .000 .000 .000 .000 .000

PL Pearson Correlation 1 .355** .475** .314** .304** .424**

Sig. (2-tailed) .000 .000 .000 .000 .000

AR Pearson Correlation

1 .223

** .403

** .368

** .181

**

Sig. (2-tailed) .000 .000 .000 .000

DO Pearson Correlation

1 .517

** .438

** .271

**

Sig. (2-tailed) .000 .000 .000

SAT Pearson Correlation

1 .448

** .322

**

Sig. (2-tailed) .000 .000

TS Pearson Correlation

1 .376

**

Sig. (2-tailed) .000

IB Pearson Correlation

1

Sig. (2-tailed)

**. Correlation is significant at the 0.01 level (2-tailed).

*. Correlation is significant at the 0.05 level (2-tailed).

The test of correlation from table 9 shows that,

• HC is statistically significant with only AR with a significant value of 0.012, whereas HC

is not statistically significant with PL and DO with a significant value of 0.748 and 0.621

respectively.

• SC is statistically significant with PL, AR and DO with a significant value of 0.0001

respectively.

• PL, AR and DO are statistically significant with SATwith a significant value of 0.0001

each.

• SAT is statistically significant with TS and IB with a significant value of 0.0001 each.

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THE FINAL MODEL IS AS FOLLOWS

CONCLUSION

Human Crowding has a positive effect on Arousal. This shows that shoppers will be more

influenced to come to a retail outlet if there is a pleasant crowd in the Retail outlet.

Whereas Spatial Crowding has a positive on all the three factors of emotions viz. pleasure, arousal

and dominance. This shows that shoppers feel happy and joyful and excited and are stimulated to

buy products of their choice in a pleasant spatial environment.Shoppers may also be dominated and

driven by the positive store environment.

Pleasure, arousal and dominance have a positive impact on the customer satisfaction. A

shopper will be more satisfied if the store environment excites him and gives him pleasure to browse

through the aisles and buy his product.

Satisfaction has a positive impact on the time spent and impulse buying. This shows that a

satisfied customer will eventually spend more time on the outlet. The more the time a shopper

spends on a retail outlet, the more he is prone to make an impulse purchase.

Overall, it shows that human crowding and spatial crowding if controlled by the retailed in the

positive manner will bring more satisfied customers to the retail outlet and also increase the

impulsive buying.

Crowding Emotion Satisfaction Outcomes

Human

Crowding

Spatial

Crowding

Pleasure

Arousal

Dominance

Satisfaction

Time Spent

Impulse

Buying

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ANNEXURE

Table A

Human crowding (HC)

Code Parameters

HC1 The store was too busy during my shopping trip

HC2 There was much traffic in the store

HC3 There were a lot of shoppers in the store

Spatial crowding (SC)

Code Parameters

SC1 The store had a closed, uneasy feeling to it

SC2 The store feels very congested when I shop in the store

SC3 I felt confined when shopping in the store

Grid layout area (GLA)

Code Parameters

GLA1 The store feels very congested when I shop in the shelving section for packaged

products

GLA2 I felt confined when shopping in the shelving section for packaged products

GLA3 It is inconvenient to move around in the aisle of the shelving section for packaged

products

GLA4 The shelving section for packaged products had a closed, uneasy feeling to it

Free-flow layout area (FLA)

Code Parameters

FLA1 The store feels very congested when I shop in the frozen food/meats/dairy product

and vegetable section

FLA2 I felt confined when shopping in the frozen food/meats/dairy product and vegetable

section

FLA3 It is not convenient to move around in the aisle of the frozen food/meats/dairy

product and vegetable section

FLA4 The frozen food/meats/dairy product and vegetable section had a closed, uneasy

feeling to it

Aisle table area(ATA)

Code Parameters

ATA1 The store feels very congested when I shop near aisle table areas

ATA2 I felt confined when shopping near aisle table areas

ATA3 It is inconvenient to move around near aisle table areas

ATA4 The aisle table areas had a closed, uneasy feeling to it

Cash register area (CRA)

Code Parameters

CRA1 The store feels very congested when waiting near cash register areas

CRA2 I usually felt confined when waiting near cash register areas

CRA3 It is inconvenient to move around near cash register areas

CRA4 The cash register areas had a closed, uneasy feeling to it

Ceiling and lighting (CL)

Code Parameters

CL1 The store feels very congested since the ceilings seems low and the light is dull

CL2 I felt confined when shopping in the store since the ceiling is low and light is dim

CL3 The ceilings and light in this store gives a closed, uneasy feeling to it

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Pleasure (PL)

Code Parameters

PL1 I felt pleasant when shopping in the store

PL2 I felt good when shopping in the store

Arousal (AR)

Code Parameters

AR1 I felt aroused when shopping in the store

Dominance (DO)

Code Parameters

DO1 I felt controlled when shopping in the store

DO2 I felt dominated when shopping in the store

Satisfaction (SAT)

Code Parameters

SAT1 I was satisfied with my shopping experience at the store

SAT2 Given a choice, I would probably come back to the store

SAT3 This is my choice of store in which I regularly like to come to shop

Time spent (TS)

Code Parameters

TS1 I spent more time than I expected at the store

TS2 The amount of time I spent was fairly high

Impulse buying (IB)

Code Parameters

IB1 When I saw people gathered, I bought things that I had not intended to purchase

IB2 When the store is crowded, I often end up purchasing more

IB3 When the store is crowded, I feel like buying things