Merchandising/Marketing/Retailing: Branding

The Small Concept Luxury Department Store: Exploring the Role of Experience Economy Strategies

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Abstract

Small concept luxury department stores (SCLD) began emerging in 2017 with the introduction of Nordstrom Local. Current trends emphasize the importance of engaging experiences. Thus. the purpose of this study was to investigate the realms of experience, including esthetics, entertainment, education, and escapism, within SCLD and their effect on the consumer emotional components of pleasure and arousal leading to overall patronage intention of the retail format. The study was guided by a modified version of the Stimulus-Organism-Response (S-O-R) framework. Data was collected using an online survey. The findings of this study demonstrate the unique ability of the SCLD to engage consumers across the four realms of experience. Both pleasure and arousal positively and significantly lead to patronage intentions, demonstrating the overarching favorable impact of the store in creating an experience that leads shoppers to return in the future. 

Keywords: experience, luxury, channel strategy, patronage intention, emotional dimensions

How to Cite:

Slaton, K. & Testa, D. S., (2024) “The Small Concept Luxury Department Store: Exploring the Role of Experience Economy Strategies”, International Textile and Apparel Association Annual Conference Proceedings 80(1). doi: https://doi.org/10.31274/itaa.17263