9 Whitepaper: The Indoor Climate Solution of tomorrow for the Retail Sector Research shows that retail stores that make improvements to their in-store environment create an effective consuming condition that might stimulate and satisfy the consumers’ immediate purchasing behaviour (Liaw, 2007).18 Subtle factors experienced through the senses, namely sight, sound, touch, scent and taste, either individually or together, can affect a consumer’s emotion in relation to a degree of stimulation and relaxation (Barclay and Ogden-Barnes, 2012).19 For example, different light and temperature combinations can influence consumer perceptions of the retail offer – with soft or warm light tones and cool or warm temperature variables, all creating different perceptions in dissimilar product sectors. Philip Kotler (1973-1974)20 was the first to use and define the term “atmospherics” as “the conscious designing of space to create certain effects in buyers. Kotler understands the atmosphere as “the air surrounding a sphere” and dissects the perception of atmospheres into the main sensory channels: sight, sound, scent, and touch. A number of scholars have addressed the issue of store atmospherics since then. However, the core essence of store atmospherics hasn’t changed. Given the importance of in-store atmospherics, especially with the rise of online retailing, it may be good to consider why the use of in-store atmospheric elements is important. Some of the reasons outlined by Kotler are as follows: (Kotler, 1973-1974)20: • Firstly, retailers can use atmospherics as a marketing tool where products are bought and where they have the ability to make use of design options. • Secondly, atmospherics becomes essential to retailers the moment more competitors enter the market. • Thirdly, in retail industries where product and price similarities occur, the use of atmospheric elements is becoming a more attractive strategy to differentiate from competitor offerings. • Finally, the use of atmospheric elements is important to differentiate between different lifestyle buyer groups. It is also important to acknowledge that there is a difference between “desired atmosphere” and “perceived environment” (Kotler, 1973-1974)20. The first refers to the set of sensory qualities designed for the artificial environment in order to establish a specific “ambiance”. The perceived atmosphere, on the other hand, can vary from one individual to another, based on one’s reaction to colours, sounds, noise and temperature, and cannot be fully controlled by organisations (Zomerdijk and Voss, 2010).21 Retailers looking to leverage store atmospherics, in order to enhance the customer experience, must therefore focus on finessing the “desired atmosphere” which, to a certain extent, is more within their control. All of these observations serve to highlight why it is important for brick-and-mortar retailers to focus on store atmospherics through creating the optimal in-store experience for shoppers, justifying why more retailers are choosing to focus on these factors with each passing day. In the next section, we shall see how Samsung’s offerings can help retailers improve their store atmospherics. 18 Source: Liaw, G., 2007. The Influence of Multiple Store Environment Cues on Shopping Mood and Patronage Satisfaction. 19 Source: Barclay, D. and Ogden-Barnes, S., 2012. Store sense: Reclaiming the four walls with sensory engagement. The Retail Acumen Series,. 20 Source: Kotler, P. (1973-1974). Atmospherics as a marketing tool. Journal of Retailing, 49(4), 48–64. 21 Source: Zomerdijk, L. and Voss, C., 2010. Service Design for Experience-Centric Services. Journal of Service Research,13(1), 67–82. Research shows that retail stores that make improvements to their in-store environment create an effective consuming condition that might stimulate and satisfy the consumers’ immediate purchasing behaviour.18