An Empirical Investigation into Millennials and their Buying Behaviour within Pop-Up Retail Stores
Keywords:Multi-channel, fashion, pop-up retail, millennial, brand experience
Multi-channel retailing has become increasingly popular as retailers aim to provide consumers with additional contact points. This is commonly done by means of pop-up retailing, an innovative retail concept that places significant emphasis on creating a unique in-store experience. Although a number of studies have been conducted on this topic, limited research is available on the factors that influence purchase intention in pop-up retail stores among Millennials, especially with regard to fashion products. This article investigates the influence of perceived store uniqueness, store atmosphere and product assortment on purchase intention, and the mediating effect of brand experience on the relationship between the predictor variables and purchase intention among Millennials in Johannesburg. By means of a quantitative study, 208 responses were collected in the form of self-administered questionnaires. Four proposed hypotheses were tested through structural equation modeling. The results revealed that all four hypotheses are significant, and that brand experience partially mediates the relationship between the predictor variables and purchase intention. The results provide retailers and marketing practitioners with insight into how the concept of pop-up retail stores can be utilised to maximise the brand experience and influence buying behaviour among Millennials. It consequently sheds light on the importance of creating a unique brand experience through pop-up retail as a channel to reach prospective customers. The main recommendation from the findings is, therefore, to ensure that the store atmosphere is uniquely tailored for the intended audience so as to result in positive brand experience which allows for positive word-of-mouth to be spread to prospective shoppers.
Aliman, N.K., Ariffin, Z.Z., & Hashim, S. M., 2018. Religiosity Commitment and Decision-Making Styles Among Generation Y Muslim Consumers in Malaysia. International Journal of Academic Research in Business and Social Sciences, 8(1), 554-576.
Aspfors, E. (2010). Customer perception of service, store image and product assortment: from an interior store perspective. (Masters Dissertation). Vaasa University of Applied Sciences.
Balogun, W.G. & Seeni, A. (2018). Nigeria’s new GDP means scientists suffer. Science, 359(6380): 1110-1111.
Bakewell, C., & Mitchell, V. (2003). Generation Y female consumer decision‐making styles. International Journal of Retail & Distribution Management, 31(2), 95-106.
Bauer, J., Kotouc, A., & Rudolph, T. (2012). What constitutes a good assortment? A scale for measuring consumers’ perceptions of an assortment offered in a grocery category. Journal of Retailing and Consumer Services, 19(1), 11-28.
Barton, C., Koslow L., & Beauchamp C. (2014). The Reciprocity Principle. How millennials
are changing the face of marketing forever. Boston, MA: Boston Consulting Group.
Belleau, B. D., Summers, T. A., Xu, Y., & Pinel, R. (2007). Theory of reasoned action purchase intention of young consumers. Clothing and Textiles Research Journal, 25(3), 244-257.
Beneke, J., Cumming, A., & Jolly, L. (2013). The effect of item reduction on assortment satisfaction - A consideration of the category of red wine in a controlled retail setting. Journal of Retailing and Consumer Services, 20(3), 282-291.
Bevan-Dye, A. L., Garnett, A., & de Klerk, N. (2012). Materialism, status consumption and consumer ethnocentrism amongst black generation Y students in South Africa. African Journal of Business Management, 6(16), 5578-5586.
Beverland, M., Lim, E., Morrison, M., & Terziovski, M. (2006). In-store music and consumer–brand relationships: Relational transformation following experiences of (mis)fit. Journal of Business Research, 59(9), 982-989.
Bizcommunity. (2018) Magnum’s pleasure store is popping up in Joburg. 15 November 2018. Retrieved from: https://www.bizcommunity.com/Article/196/785/184354.html. Accessed 14/10/2019
Bizcommunity (2018). Now showing Space man pop-up showcases SAMW design talent. 19 February 2018. Retrieved from https://www.bizcommunity.com/Article/196/182/173674.html. Accessed 14/10/2019
Borrieci, R. N. (2011). The experience effect: Engage your customers with a consistent and memorable brand experience. Journal of Product and Brand Management, 20(5), 430-431.
Bose, S. (2017). Pop-Up shops keep popping up (Infographic). Small Business Trends. Retrieved from https://smallbiztrends.com/2017/10/pop-up-store-trends.html.
Brakus, J. J., Schmitt, B. H., & Zarantonello, L. (2009). Brand experience: What is it? How
is it measured? Does it affect loyalty? Journal of Marketing, 73(3), 52–68
Burgess, B. (2012). Pop-up retailing: The design, implementation, and five-year evolution of an experiential learning project. Journal of Marketing Education, 34(3), 284-296.
Cant, M., Gerber-Nel, C., Nel, D. & Kotzé, T. (2011). Marketing research. 2nd ed. Cape Town: Van Schaik Publishers.
Chikanda (2019). 2019 Gen Next survey: SA youth have definite brands expectations.
Retrieved from https://www.mediaupdate.co.za/marketing/146786/2019-gen-next-survey-sa-youth-have-definite-brands-expectations. Accessed 20/03/2020
Chernev, A. (2012). Product assortment and consumer choice: An interdisciplinary
review. Foundations and Trends® in Marketing, 6(1), 1-61.
Cook, G. (2014). Customer experience in the omni-channel world and the challenges and opportunities this presents. Journal of Direct, Data and Digital Marketing Practice, 4(15), 262-266.
Cradlepoint Technology (2012). Trends in pop-up retail: Innovative merchandising driven by flexible dependable mobile connectivity. Retrieved from https://www.streakwave.com/cradlepoint/CradlePoint_Pop_up_Store_White_Paper.pdf. Accessed 20/03/2020
Dai, B., Forsythe, S., & Kwon, W. (2014). The impact of online shopping experience on risk perception and online purchase intentions: Does product category matter? Journal of Electronic Commerce Research, 15(1), 13-24.
Das, G., Agarwal, J., Malhotra, N. K., & Varshneya, G. (2019). Does brand experience translate into brand commitment?: A mediated-moderation model of brand passion and perceived brand ethicality. Journal of Business Research, 95, 479-490.
de Lassus, C., & Freire, N. A. (2014). Access to the luxury brand myth in pop-up stores: A netnographic and semiotic analysis. Journal of Retailing and Consumer Services, 21(1), 61-68.
Donnelly, C., & Scaff, R. (2013). Who are the millennial shoppers? And what do they really
want? Accenture Outlook. Retrieved from: http://www.accenture.com/SiteCollectionDocuments/PDF/Accenture-Outlook-Who-Are-Millennial-Shoppers-What-Do-They-Want-Retail.pdf. Accessed 20/03/2020
Duffett, R. G. (2015). Facebook advertising’s influence on intention-to-purchase and purchase amongst Millennials. Internet Research, 25(4), 498-526.
Verhoef, P. C., Kannan, P.K. & Inman, J. J. (2015). From multi-channel retailing to omni-channel retailing: Introduction to the special issue on multi-channel retailing. Journal of Retailing, 91(2), 174-181.
Diehl, K., & Poynor, C. (2010). Great expectations? Assortment size, expectations, and satisfaction. Journal of Marketing Research, 47(2), 312-322.
Female Entrepreneurs SA (2020). How to set up a pop up shop.
Retrieved from https://femaleentrepreneursa.co.za/how-to-set-up-a-pop-up-shop/. Accessed 2020/03/23
GFK (2017). Unpacking South African Millennials. Retrieved from http://www.gfk.com/insights/news/unpacking-south-african-millennials/ Accessed 2019/02/05
Gillani, F. (2012). Impact of peer pressure and store atmosphere on purchase intention: An empirical study on the youngsters in Pakistan. International Journal of academic research in Business and Social Sciences, 2(7), 323.
Gurau, C., (2012). A life-stage analysis of consumer loyalty profile: comparing Generation X and Millennial consumers. Journal of Consumer Marketing. 29 (2), 103–113.
Ha, Y., Kwon, W. S., & Lennon, S. J. (2007). Online visual merchandising (VMD) of apparel web sites. Journal of Fashion Marketing and Management, 11(4), 477-493.
Hamilton, K. (2020). SA Guide to Business Opportunities Magazine. Retrieved from
https://showme.co.za/lifestyle/pop-up-stores-here-to-stay/. Accessed 2020/03/26
Hamilton, R., & Chernev, A. (2012). Managing product assortments: Insights from consumer
psychology. Kellogg on Marketing, 348-360.
Haas, S. & Schmidt, L. (2016). What drives the success of pop-up stores? Wissenschaftliche Beitrage, 20, 89-95.
Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2010). Multivariate data analysis (7th ed.). Englewood Cliffs: Prentice Hall.
Hair, J. F., Sarstedt, M., Ringle, C. M., & Mena, J. A. (2012). An assessment of the use of partial least squares structural equation modeling in marketing research. Journal of the Academy of Marketing Science, 40(3), 414-433.
Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the academy of marketing science, 43(1), 115-135.
Hill, J., & Lee, H. H. (2012). Young Generation Y consumers’ perceptions of sustainability in the apparel industry. Journal of Fashion Marketing and Management: An International Journal, 16(4), 477-491.
Holmqvist, J., & Lunardo, R. (2015). The impact of an exciting store environment on consumer pleasure and shopping intentions. International Journal of Research in Marketing, 32(2), 118-131.
Howe, N., & Strauss, W. (2000). Millennials rising: The next great generation. New York: Vintage.
Hwang, J., & Hyun, S. S. (2015). Perceived firm innovativeness in cruise travelers’ experience and perceived luxury value: The moderating effect of advertising effectiveness. Asia Pacific Journal of Tourism Research, 21(s1), 617-716.
Hwang, J., & Hyun, S. S. (2017). First-class airline travelers’ tendency to seek uniqueness: how does it influence their purchase of expensive tickets? Journal of Travel & Tourism Marketing, 34(7), 935-947.
Hyun, S. S., & Park, S. H. (2015). The antecedents and consequences of travelers' need for uniqueness: An empirical study of restaurant experiences. Asia Pacific Journal of Tourism Research, 21(6), 596-623.
Hulland, J. (1999). Use of partial least squares (PLS) in strategic management research: A review of four recent studies. Strategic management journal, 20(2), 195-204.
Hussain, R., & Ali, M. (2015). Effect of store atmosphere on consumer purchase intention. International Journal of Marketing Studies, 7(2). 35-43
Iglesias, O., Markovic, S., & Rialp, J. (2019). How does sensory brand experience influence brand equity? Considering the roles of customer satisfaction, customer affective commitment, and employee empathy. Journal of Business Research, 96, 343-354.
Iglesias, O., Singh, J.J. & Batista-Foguet, J. (2011) The role of brand experience and affective commitment in determining brand loyalty. Journal of Brand Management, 18(8), 570- 582.
Jackson, T., & Shaw, D. (2009). Mastering fashion marketing. London: Palgrave Macmillan.
Jang, S. S., & Namkung, Y. (2009). Perceived quality, emotions, and behavioral intentions: Application of an extended Mehrabian–Russell model to restaurants. Journal of Business Research, 62(4), 451-460.
Kamaladevi, B. (2009). Customer experience management in retailing. Business Intelligence Journal, 3(1), 37-53.
Kang, J. & Park-Poaps, H. (2010). Hedonic and utilitarian shopping motivations of fashion leadership. Journal of Fashion Marketing and Management, 14(2), 312-328.
Kastner, O.L. (2015). Erfolgsfaktoren von Pop-up Stores. Fallstudiengestützte Evaluation am Beispiel der Beklei- dungsindustrie. Wiesbaden: Springer Gabler.
Kim, H., Fiore, A. M., Niehm, L. S., & Jeong, M. (2010). Psychographic characteristics affecting behavioral intentions towards pop‐up retail. International Journal of Retail and Distribution Management, 38(2), 133-154.
Klein, J. F., Falk, T., Esch, F., & Gloukhovtsev, A. (2016). Linking pop-up brand stores to brand experience and word of mouth: The case of luxury retail. Journal of Business Research, 69(12), 5761-5767.
Kim, M., & Lennon, S. (2008). The effects of visual and verbal information on attitudes and purchase intentions in internet shopping. Psychology and Marketing, 25(2), 146-178.
Khan, I., & Rahman, Z. (2015). Brand experience anatomy in retailing: An interpretive structural modeling approach. Journal of Retailing and Consumer Services, 24, 60-69.
Kumar, A., & Kim, Y. (2014). The store-as-a-brand strategy: The effect of store environment on customer responses. Journal of Retailing and Consumer Services, 21(5), 685-695.
Ladhari, R., Gonthier, J., & Lajante, M. (2019). Generation Y and online fashion shopping: Orientations and profiles. Journal of Retailing and Consumer Services, 48, 113-121.
Lappeman, J., Egan, P., & Coppin, V. (2020) Time for an update: Proposing a new age
segmentation for South Africa. Management Dynamics, 29 (1), 1-16
Lee, H. H., Kim, J., & Fiore, A. M. (2010). Affective and cognitive online shopping experience: Effects of image interactivity technology and experimenting with appearance. Clothing and textiles research Journal, 28(2), 140-154.
Martins, J., Costa, C., Oliveira, T., Gonçalves, R., & Branco, F. (2019). How smartphone advertising influences consumers' purchase intention. Journal of Business Research, 94, 378-387.
Martin, C. A., & Turley, L. W. (2004). Malls and consumption motivation: an exploratory examination of older generation Y consumers. International Journal of Retail & Distribution Management, 32(10), 464-475.
Maziriri, E. T., Chuchu, T., & Madinga, N. W. (2019). Navigating on the antecedents that influence store patronage, apparel purchase decision and store attachment among the Generation Y cohort. The Retail and Marketing Review, 15(1), 39-56.
Mehrabian, A. & Russell, J. (1974). An approach to environmental psychology. Cambridge, MA: The MIT Press.
Moreira, A. C., Fortes, N., & Santiago, R. (2017). Influence of sensory stimuli on brand experience, brand equity and purchase intention. Journal of Business Economics and Management, 18(1), 68-83.
Nasermoadeli, A., Ling, K. C., & Maghnati, F. (2013). Evaluating the impacts of customer experience on purchase intention. International Journal of Business Management, 8(6), 128-138.
Nichols, B. S., Raska, D., & Flint, D. J. (2015). Effects of consumer embarrassment on
shopping basket size and value: A study of the millennial consumer. Journal of Consumer Behaviour, 14(1), 41-56.
Noble, S., Haytko, D., & Phillips, J. (2008). What drives college-age generation Y consumers? Journal of Business Research, 62(6), 617–628.
Ordun, G. (2015). Millennial (Gen Y) consumer behavior their shopping preferences and perceptual maps associated with brand loyalty. Canadian Social Science, 11(4), 40-55.
Lin, Y. H. (2015). Innovative brand experience's influence on brand equity and brand satisfaction. Journal of Business Research, 68(11), 2254–2259
Parment, A. (2013). Generation Y vs. Baby Boomers: Shopping behavior, buyer involvement and implications for retailing. Journal of retailing and consumer services, 20(2), 189-199.
Park, H. J., & Yoo, T. S. (2012). The structural analysis of the variables among clothes
consumption value, need for uniqueness, use information sources related to importance of apparel product attributes and store attributes. Journal of the Korean Society of Clothing and Textiles, 36(8), 802-813.
Popa, V., & Barna, M. (2013). Customer and shopper experience management. Valahian
Journal of Economic Studies, 4(2), 81-88.
Pomarici, E., & Vecchio, R. (2014). Millennial generation attitudes to sustainable wine: An exploratory study on Italian consumers. Journal of Cleaner Production, 66, 537-545.
Ray, I., & Chiagouris, L. (2009). Customer retention: Examining the roles of store affect and store loyalty as mediators in the management of retail strategies. Journal of Strategic Marketing, 17(1), 1-20.
Retief, M (2012). Young South African consumers’ impulse intentions toward visiting pop-up stores. Unpublished Masters dissertation. University of Pretoria.
Richard K. Miller and Associates (2011), Consumer Behavior 2011: Millennial Consumers, Richard K. Miller and Associates (RKMA), Loganville, GA
Sahin, A., Zehir, C., & Kitapçı, H. (2011). The effects of brand experiences, trust and satisfaction on building brand loyalty; an empirical research on global brands. Procedia-Social and Behavioral Sciences, 24, 1288-1301.
Shukla, P. (2011). Impact of interpersonal influences, brand origin and brand image on luxury purchase intentions: Measuring interfunctional interactions and a cross-national comparison. Journal of World Business, 46(2), 242-252.
Spence, C., Puccinelli, N. M., Grewal, D., & Roggeveen, A. L. (2014). Store atmospherics: A
multisensory perspective. Psychology & Marketing, 31(7), 472-488.
Solka, A., Jackson, V. P., & Lee, M. Y. (2011). The influence of gender and culture on Generation Y consumer decision making styles. The International Review of Retail, Distribution and Consumer Research, 21(4), 391-409.
Statista (2019). Fashion – South Africa. Statista Market Forecast. Retrieved from https://www.statista.com/outlook/244/112/fashion/south-africa. Accessed 17/10/2019
Statistics South Africa (SA) (2012), Census 2011: In Brief, Statistics, Statistics SA, Pretoria
Stevens, B. (2017). The rise of pop-up shops and what it means for retail. Retail Gazette. Retrieved from: https://www.retailgazette.co.uk/blog/2017/04/the-rise-and-rise-of-pop-up-shops-and-what-it-means-for-retail/. Accessed 17/10/2019
Stone, M., Hobbs, M., & Khaleeli, M. (2002). Multichannel customer management: The benefits and challenges. Journal of Database Marketing & Customer Strategy Management, 10(1), 39-52.
Tavakol, M., & Dennick, R. (2011). Making sense of Cronbach's alpha. International Journal of Medical Education, 2, 53-55.
Warnaby, G., & Shi, C. (2018). Pop-up retailing: Managerial and strategic perspectives. Heidelberg: Springer.
Wu, Y., & Chen, H. (2019). The Influence of Product Diversity on Consumers’ Impulsive
Purchase in Online Shopping Environment. American Journal of Industrial and Business Management, 9(3), 680-698.
Wu, P., Yeh, G., & Hsiao, C. (2011). The effect of store image and service quality on brand
image and purchase intention for private label brands. Australasian Marketing Journal,
Valentine, D. B., & Powers, T. L. (2013). Generation Y values and lifestyle segments. Journal of consumer marketing, 30(7), 597-606.
Viswanathan, V., & Jain, V. (2013). A dual-system approach to understanding “generation Y” decision making. Journal of Consumer Marketing, 30(6), 484-492.
Yarrow, K., & O'Donnell, J. (2009). Gen buy: How tweens, teens and twenty-somethings are revolutionizing retail. New York: John Wiley and Sons.
Yang, H. L., & Lai, C. Y. (2010). Motivations of Wikipedia content contributors. Computers in human behavior, 26(6), 1377-1383.
Yao, J., Wang, X., & Liu, Z. (2013). Identification system. Journal of Applied Sciences,
Yasin, M. A., Sultan, F., Nazam, M., Akash, R. S. I., Hashim, M., & Ahmad, J. (2019).
Designing the Super Store atmosphere with non-visual stimulants: effects on shoppers’ purchase and emotional behavior. Dilemas Contemporáneos: Educación, Política y Valore, 6, 1-28.
Zogaj, A., Olk, S., & Tscheulin, D. K. (2019). Go pop-up: Effects of temporary retail on
product-and brand-related consumer reactions. Journal of Retailing and Consumer Services, 50, 111-121.
The author fully assumes the content originality and the holograph signature makes him responsible in case of trial.