Relationship between Experience Economy Dimensions and Perceived Experiential Value in the Context of Indian Shopping Malls

Abstract

Based on the consciousness-emotion-value (C-E-V) model within the Stimulus-Organism-Response (S-O-R) framework as proposed by Fiore and Kim (2007), hypotheses were developed for the study (see Figure 1).Method Following the guidelines outlined by Sudman (1980), the data were collected through a mall intercept survey in two malls in New Delhi, India. Five hundred and fifty-two completed surveys were used for the statistical analysis. The survey included 7-point Likert-type scales with items adapted from existing scales with acceptable reliabilities (α > .70). Descriptive and exploratory factor analysis (EFA) was carried out with SPSS 21.0. Using Mplus 7.0, structural equation modeling was performed with goodness of fit measures (e.g., CFI) for confirmatory factor analysis and structural modeling, and estimation parameters were used to assess hypothesized relationships. ResultsThe majority of the respondents were male (66.8%), below 31 years of age (91.3%), with a bachelor's degree (52.4%), and single (69.6%). The measurement model (χ 2 = 1716.37, df = 774, p ≤ .05, CFI = .93, RMSEA = .05, SRMR = .04) and structural model (χ 2 = 1889.29, df = 786, p ≤ .05, CFI = .92, RMSEA = .05, SRMR = .07) had acceptable fit. All hypotheses were supported except for H1a, H1b, H2b, and H3b. Thus, experience economy constructs, except for the educational dimension, contributed to the perceived experiential value associated with retail stores and/or non-store aspects of the mall. Esthetic experiences had the most consistent positive impact (β ranged from .20 to .48) out of the 4Es on perceived experiential value. Conclusions and ImplicationsThe theoretical and conceptual contribution of the present study lies in expanding and applying Pine and Gilmore's (1999) 4Es in a non-Western consumer context and different consumer venues (i.e., retail stores in the mall and non-store aspects of the mall). Moreover, the results of this study provide empirical support for the idea that the experience economy constructs have a significant impact on the perceived value associated with retail stores in the mall and non-store aspects of the mall. In future studies, a cross-cultural study involving the 4Es in malls in other Asian countries where organized retail (especially malls) is developing at different rates, and the effect on actual spending, should be undertaken.