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Shoppers Experiences of Digital Signage-a Cross-National Qualitative StudyAndrew Newman, Charles Dennis, Len-Tiu Wright, Tamira King

Shoppers Experiences of Digital Signage-a Cross-National Qualitative

Study

Andrew Newman

Salford Business School, University of Salford

e-mail: [email protected]

Charles Dennis *Brunel Business School, Brunel University

e-mail: [email protected]

* Corresponding AuthorLen-Tiu Wright

Leicester Business School at Bede Island, De Montfort University

e-mail: [email protected] King

Brunel Business School, Brunel University

e-mail: [email protected]: 10.4156/jdcta.vol4.issue7.5

Abstract

Digital signage, sometimes known as a Digital Communications Network (DCN) or private plasmascreen network, has been little researched to date. This paper puts forward the view that signage is a

very important facet of modern life due to its ubiquitous and visible nature to advertise the names of

brands, services and the corporate names of supplier organisations and high street stores, to direct

people as to where to go for special events and so on. The paper focuses on how consumer shopping

behaviour can be enhanced by an atmospheric stimulus and the ways in which digital signage can

affect consumer perceptions about the brand names or image of shopping malls. A qualitative study is

carried out with empirical results evaluating how digital signage screens can improve the image of

shopping malls and create a favourable shopping atmosphere. The findings showed that the effects are

influenced by the audio and video contents and also by the locations of the screens. In addition to the

obvious application to shopping malls in improving business-to-consumer appeal to shoppers the

findings are of use to suppliers of digital signage in business-to-business marketing of their systems to

shopping mall tenants.

Keywords: Digital signage, Digital Communication Networks, DCNs, Branding, Shopping malls,Consumer buyer behaviour, Qualitative study.

1. Introduction

This paper examines how consumer buying behaviour in shopping malls can be enhanced or

improved by exposing shoppers to environmental atmospheric stimuli and draws its inspiration from

marketing and environmental psychology. From a large array of potential atmospheric stimuli shoppers

respond to some more than others in constructing their evaluations of the images of shopping locations.

Mall managers will want to identify and manipulate stimuli which will have a positive effect on

shoppers perceptions of atmosphere and hence encourage their buying, in order to demonstrate value

to tenant retailers.

The qualitative study in this paper, therefore, focuses on the atmospheric stimulus of digital signage,sometimes known as Captive Audience Network (CAN) or private plasma screen network. Digital

signs are screens in public places that may carry a mixture of advertising (that can be similar to

national television advertising or, alternatively, more specific to local retail stores and offers) and

program content such as news and entertainment.

Digital signage may be used by malls with two distinct objectives:

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International Journal of Digital Content Technology and its ApplicationsVolume 4, Number 7, Octber 2010

to produce a revenue stream by charging advertisers (an important function but beyond ourscope); and

by interesting, informative and entertaining content, to improve atmosphere and image thefocus of this study.

Little previous work has been reported on digital signage (for two exceptions, see Dennis et al.,

2010 [9]; and Newman et al., 2007 [24]) and none that we are aware of in an international context.

Digital signage suppliers therefore need more factual research findings in order to promote the systemsto malls. The objective of this study is to qualitatively examine shopper reactions to digital signage in

more depth than is possible with structured questionnaires.

2. Theoretical Framework: Retail Atmospherics

Shopping often includes hedonic experiences rather than just the utilitarian acts of obtaining

products and consumers often choose shopping malls for the pleasantness of the atmospheres rather

than the merchandise (Dennis et al., 2002 [8]; Kotler, 1974 [18]; Martineau, 1958 [21]; Newman and

Patel, 2004 [25]). A rare study on digital signage (Newman et al., 2007 [24]) revealed mental

abstraction when participants attempted to recall images of mall environments consistent with prior

findings on image (Berry, 1969 [3]; Boulding, 1956 [4]; Gentry and Burns, 1977 [14]; Lindquist, 1974

[19]; Martineau, 1958 [21]; Newman, 2002 [23]). Consumers positive emotional responses and

shopping behaviors can increase in pleasant atmospheres and can decrease in unpleasant ones (Ang andLeong, 1997 [1]; Mehrabian and Russell, 1974 [22]; Spies et al., 1997 [29]). West (2008, p352 [34])

also discussed the shift from push (when marketers place information) to pull (when members of a

target audience pull information towards themselves) as leading to a shift in power from marketers to

the consumers. Background atmospherics often make more impression on consumers than do the more

tangible aspects such as shops and products; and these less-tangible atmospherics (such as digital

signage) are often under the direct control of mall marketing managers (see Branthwaite 1984 [5]).

Therefore, a more precise understanding of these underlying atmospheric cues is not only desirable but

also vital.

Digital signage has been reported to be an effective form of media (Clarke, 2003 [7]; Dennis et al.,

2010) that can provide improvements in customer perceptions of service settings (Thomke, 2003 [30]).

In line with the findings of the only quantitative study on digital signage that we are able to cite

(Dennis et al., 2010), we expect that digital signage will improve the atmosphere and consumers

images of a shopping mall. When shoppers perceive positive atmospheric stimuli (Chebat and Michon,2003 [6]; Mehrabian and Russell, 1974 [22]; Sherman and Smith 1987 [27]) and image (Dennis et al.,

2002 [8]; Finn and Louviere, 1996 [13]; McGoldrick and Thompson, 1992 [20]; Newman and Patel,

2004 [25]; Severin et al., 2001 [26]), they are likely to stay longer, visit more often and/or spend more.

This leads to the simplified conceptual model illustrated schematically in Figure 1. This atmospheric

stimulus/response model has been validated in much previous research across various countries and

contexts (Turley and Milliman, 2000 [31]). In this paper, we aim to elucidate in greater depth the

concept indicated by the thicker arrow in Figure 1, which we expect to apply reasonably consistently

across a range of types of malls and country/cultural settings.

Atmospheric Image of Approach

stimuli shopping mall or behaviours

shopping centre

Figure 1. Simplified schematic representation of the concept that we elucidate.

Digital signage advertises names and locations of products and services, company and shop

locations thereby evoking consumer urges to go to certain places to look for particular brands and

services. Moreover, such urges may include both planned and unplanned purchases. The latter is

usually not based on rational and careful thinking with little consideration or thought given to

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consequences about the purchases (Hoch and Loewenstein, 1991 [17]). This and the emphasis on the

importance of self-image products consumed are shown to have psychological significance (Warde,

1994 [33]). There is support in the literature about the increasing importance of consumption and its

significance. In retail marketing environments, various researchers (e.g. Donovan et al 1994 [12];

Underhill, 1999 [32]) have shown that a variety of displays and environmental stimuli encourage

customers to stay, browse and to buy. Browsing typically involves collecting and taking in perceptual

information regarding the sights, smells and sounds in the stores whereas the search function will

require garnering information which is product-specific e.g. sizes and price tags or store-specific. In thecourse of searching or browsing for products, customers can also be visually attracted to other products.

Wright et al (2006) [35] stated that enhancements and stimuli including colour, lighting and music are

found to generally affect customer behaviour subliminally through their mood states. In sum, if

shoppers experience pleasurable shopping environments, they are likely to spend more money in the

stores. Digital signage plays a crucial role in directing shoppers to their search functions externally and

internally and therefore, has an impact on consumer mood states and their buying behaviour.

3. Research Design

Acknowledging earlier research in shopping environments (imaging factors, Dennis et al., 2002 [8];

share of household spending, Hildebrandt, 1998 [16]; store loyalty, Sirgy and Cocksun, 1989 [28]), we

conducted a qualitative investigation that sought to provide insight into the underlying messages that

consumers experienced (Bellinger et al, 1976 [2]; Dey, 1993 [10]). In order to identify constructs indepth across a range of contexts, we carried out focus groups in three different countries: USA,

Australia and UK. This is not withstanding that, as mentioned in the theoretical framework section

above, based on much previous research on retail atmospherics, we expect responses to digital signage

to be reasonably consistent across country settings. The objective of the multi-country approach is to

extend the generalisability of the results, rather than to study cultural differences in consumer

behaviour.

In each case, we asked participants to discuss two malls. In the first stage, each pair consisted of

one mall with digital signage and one without, close enough together geographically for respondents to

compare the two. The USA and Australian pairs consisted of two regional malls each. The USA pair, in

the south-east of the country, appeal strongly to tourists, an up-scale mall with digital signage and a

mid-scale one without. The Australian pair are in the north-east of the country, both mid-scale and, like

the UK pair, catering mainly for a local clientele. The UK pair consists of two sub-regional malls in the

southern UK, comparing a modern, up-scale mall with digital signage with a mid-scale one, built in the1960s and refurbished in the late 1980s. In the first stage of the study, this older, mid-scale mall did not

have digital signage but this was later added, prior to a second round of focus groups.

Participants were recruited either by telephone from a list of shoppers who had previously

completed a questionnaire on shopping in the same town and indicated that they were interested in

taking part in further research; or by convenience methods as volunteers known to shop at both malls in

the pairs (mainly university staff and Masters students). The participants were as representative as

practical of the shoppers in the malls, covering a range of ages from teens to seniors and a range of

socio-economic status. The 22 participants in the first stage comprised 14 women and eight men. The

US study consisted of one group of three and one group of two. In Australia, there was a single group

of five participants. In the first stage in the UK, two groups contained five participants and the third,

two. In the second stage, after digital signage had been installed at the older UK mall, there were a

further 26 participants comprised 20 women and six men, in three groups made up of two groups of 10

participants and one of six. In total, then, there were 48 participants comprised of 14 men and 34

women (approximately in proportion to the relative amount of shopping activity of the respective

sexes).

The semi-structured discussion guide contained open-ended questions and cues in order to detect

patterns and trends across the groups and encourage spontaneity. Sessions were recorded and later

transcribed for analysis. We adopted a specific and systematic approach to data analysis, which relied

on the understanding of substantive issues in the data. This was considered preferable to a

conversation analytic approach or group dynamics, which would have been likely to suppress useful

findings as a result of digressing outside our sphere of investigation.

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Sorting and theme generation in the form of axial coding facilitated the listing of key ideas and

recurrent themes, as practiced in grounded theory. The coding procedure included whether each

individual participant mentioned a given code and whether each groups discussion contained that code.

Rather than applying a priori templates to the coding, for this exploratory investigation, the codes

were produced through a more emergent encounter with the data themselves, in order to elicit the

essential constructs. This approach allowed us to formulate interpretations of the data and to give

representations of these interpretations in order to add to a body of knowledge (Wright 2008) [36].

4. Results

Evaluations of the screens were overwhelmingly positive. The few negative comments covered two

areas. First, there were a small number of criticisms of individual installations:

I didnt think they were good. One was actually quite blurred unless thats my eyes. But

the visual effect was not good [UK male].

Black, white or pink, I couldnt read the pink at all. I couldnt see it [UK female].

More generally, a few comments were made along the lines of cant see the point:

But you come out to get away from television, dont you? You come out and will be looking

up at it. We dont look at it at all, do we? [UK female].I dont think screens are a good idea at all. I think they are a waste of time. [UK female].

The results elicited ten themes, consistent with the theory framework, listed in Table 1. The digital

signage screens enjoyed general approval in all three (later, four) malls where installed, being viewed

as modern and different:

And its got to look good modern youve got to keep updating things. Because youve

got all these fantastic screens all singing and dancing ! [UK female, referring to the

new screens in the older mall].

They make it more modern too [UK female, referring to the new screens in the older mall].

I think it makes them a bit more up to date [UK Female]

I think some people would think it was old fashioned if they werent there because all of [the

malls] have got some [screens] [UK Male]Theyve been in [the newer mall] for quite a period now, certainly a lot longer than here

Well, its newer, isnt it? Its built with everything like that in mind. [exchange UK male /

female].

I think [the digital signage] adds to [the image of the mall] a lot because the images

on the screens are also very sophisticated they are not sort of like the typical American

advertising on television they are very arty and persuasive in a sophisticated way [USA

female].

Lets say they give a better look to a mall because it looks more up date more modern

[Australian male].

Other participants made reference to the persuasiveness of visual images:

Think its giving the area a personality and making it more personal. This isnt just any

shopping centre [UK female].

Found it relaxing to look at all the adverts [UK female].

Digital signage was particularly valued when it provided specific information of use to the

individual.

Yeah, probably [I would be more likely to visit a mall that had provided information on

digital signage] [US male].

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Advertising was welcomed when it provided local, time-specific information and special offers:

Its got to be a newsworthy item, things like that. We all know what [a leading apparel

store] sells, we dont need to be reminded that theres one of those in [this city] but if

theyve particularly got a new range of something, you might want to be told about that [UK

female].

It would affect our shopping if it flashed up and said somewhere was having 25 percent offor something you know a blue cross [special reduced prices] day and you didnt know

about it [UK female].

If you were out shopping, and you suddenly saw that you know, [a department store] has got

a sale on knickers [underwear] this week and youre out looking you might think Ill pop

in there [UK female].

Community announcements were particularly valued:

It might be helpful if they had more information about what was happening rather than just

advertising [UK female].

Well they do have the occasional fashion shows at [this mall] they could advertise that or

they have events dont they at Easter and Christmas and so forth? [UK female].

Upcoming concerts in [this area], the information, yeah I had no idea I just only thoughtthey have concerts in [the nearest city] all the time so this kind of things can be helpful

[Australian female].

Its nice to hear the local information; it adds to the identity of the area [UK female].

I think that the community info is good [UK female].

Shoppers preferred locations for the digital signage where they would pause or wait:

They have them by the seating areawhere I sit with my friends and have a coffee [UK

female].

Somewhere where you have to wait [UK male].

Following Dub and Morin (2001) [11] and Herrington and Capella (1996) [15], we evaluated the

role of sound and music, finding mixed views:

I dont think youd be able to hear it very well / I wouldnt like it. Too much background

noise [exchange, UK females].

I stared at it for ages but I thought: I like to hear things, I dont like silent movies and I

found it frustrating cause I could see pictures and images but I couldnt really understand

what they were trying to portray [UK Female].

The reason I felt stimulated at the screens was as I entered the mall the screens were one of

the first things I saw they were showing a fashion show and the imagery was very

glamorous, the music was very good and it just gave me a feeling of wow! [USA male].

I think if that didnt have sound on it wouldnt hold my interest [UK female].

The music was good and it made the atmosphere more dramatic [UK male].

The digital signage stimulus can activate the desire to spend money by enhancing the environment

(indicated schematically by the thinner arrow in Figure 1):

[I would spend more money because of the screens], yeah, just because of the screens

but because of the totality of the experience that that contributed to without doubt [USA

male].

It just makes it more of a welcoming atmosphere for shopping [UK male].

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Participants viewed the screens as an important feature and entertaining part of the retail experience

rather than merely advertising medium:

I enjoyed them they were entertaining and a great focal point . Absolutely and even

if you were not looking at them they added a, a certain light simply because the movement of

light so as the images moves then, then the environment changed to, to the imagery of light

and sounds as well [USA male].

I certainly found it very [entertaining]. I wouldnt necessarily sit down and watch it but itgave an energy to the place [USA male].

I like [the digital signage screens]. When you are sitting having a drink of coffee and theyre

just part, they create a nice ambiance, a nice atmosphere in that area and thats why I like

them [USA Female].

[The digital signage screens make me feel] entertained and help to relax you because if

youre sitting by yourself then youve got a focus of attention and also if youre sitting with

somebody that you dont know very well they are something to comment on [USA female].

But I think [that the digital signage screens add] value to the other shops like a lot of

people who go for shopping that screen actually helps and entertains them and stuff

[Australian female].

In summary, we have elicited a number of constructs of the effects of digital signage on the image

of shopping malls, including modern, distinctive, entertaining, persuasive and linked to spendingbehavior see list in Table 1.

Table 1. Summary of constructs of the effects of digital signage on the image of shopping malls.

Constructs

ModernDistinctive

Welcomed contentWelcomed community informationWelcomed entertainmentImportance of good visual design

PersuasiveEffectiveness of pause locationsEffectiveness of sound and music

Link of atmosphere to spending

5. Conclusions and Implications

The study covered a range of types of malls, which differed in the three countries (e.g. anchored by

grocery stores only in Australia; targeting tourists only in the USA; and located in the centre of a

central business district (CBD) only in the UK). Despite this and the wide range of ages, socio-

economic backgrounds and (of course) nationalities of the participants, remarkably consistent themes

emerged. Very few negative views were expressed and, other than perceived weaknesses of specific

installations, the negatives were never stronger than waste of time rather than any objections to the

digital signage per se. Participants almost universally held the screens and their content in high regard,

felt that they were a positive enhancement to the malls and a source of valuable community

information. Strong feelings emerged to express the importance of these media for advertising

community events. Installing digital signage screens at the malls that do not have them could wellenhance their images, leading to a more modern perception, entertaining customers and improving

sales.

In conclusion, the work presented here provides the basis for more precise targeting and shopping

mall image management. The results of this study suggest that digital signage screens containing useful

information, pleasant scenes and sounds can act as enhancers to consumers. As mentioned in the

introduction, there is a dearth of research into digital signage. As a preliminary step, this paper has

taken the form of a wide ranging exploration across types of mall and shoppers. We recommend more

focused quantitative and qualitative studies in more locations to extend the generalisability of the

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findings. The findings, particularly the ten constructs listed in Table 10, will inform the design of

future structured questionnaires. Specifically, we recommend (a) extending the scope of qualitative

investigation to elicit the views of industry key informants; (b) scale generation and purification for

digital signage descriptors; and (c) quantitative studies to validate and develop the proposed model in a

range of contexts. In addition to the obvious application to shopping malls in improving appeal to

shoppers, the findings are of use to suppliers of digital signage, to advertisers for promoting their

systems to shopping malls owners and to such owners in marketing to existing and prospective tenants

in leasing outlets in the malls.

6. Acknowledgements

The authors gratefully acknowledge the extensive co-operation and assistance of shopping mall

managements and generous research grants from GlobeCast, How and Why, the Mall Corporation and

a local consortium representing the UK CBD.

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