Selling the Extraordinary in Experiential Retail Stores

Abstract

To drive differentiation and create competitive advantage, most brands strive to deliver extraordinary brand experiences. One means of doing so is operating flagship stores, in which an augmented brand display allows consumers to experience the brand more strongly. The results of an experiment that simulates a brand store versus flagship store visit and manipulates motivational orientation indicate that the retail experience updates the brand experience. In flagship stores, this process is facilitated by recreational (vs. task-oriented) motivation, while the opposite occurs in (nonexperiential) brand stores. Through improved brand experience, a positive retail experience generates purchases of both standard and exclusive store products. A field study confirms this effect, identifies brand salience as a moderator, and shows that positive retail and brand experiences generate cross-channel purchase intention and brand buzz.