Extreme Makeover: Short- and Long-Term Effects of a Remodeled Servicescape

Abstract

Using survey and transaction data from a natural experiment in a fast-food chain, the authors investigate the effects of store remodeling. They test (1) short- and long-term effects on customers’ cognitions, affect, and behavioral intentions; (2) the moderating impact of spontaneous versus planned and group versus single-customer store visits; and (3) the differential effects on two store performance measures: average customer spending and store traffic. The results show that, in line with adaptation-level theory, short-term remodeling effects lose strength in the long run (i.e., after six months). Furthermore, customers on a spontaneous trip or in a group tend to be more responsive to store remodeling than customers on a planned trip or alone. Finally, whereas average spending increases in the short run and then returns to the baseline, store traffic initially remains unaffected and even shows a dip in the long run. These findings imply that ignoring the time-variant character of remodeling effects, the nature of customers’ store visits, or the impact on store traffic may lead to inappropriate allocation of marketing resources.