Visiting physical stores also has a positive effect on psychological well-being. Some surprising elements emerged in this context.
Magne Angelshaug
Retail Therapy: Rethinking Shopping Experiences Through the Lens of Well-Being
How do retail experiences influence customers' psychological well-being? A recent study led by Magne Angelshaug and Tor W. Andreassen, seeks to answer this question.
“The goal of the study was to help retailers find their way forward. How should they build their business models in the future?” says Angelshaug.
The starting point for the project was the customer perspective, meaning what retailers should do to better align with what benefits the customers. Angelshaug and Andreassen specifically chose to focus on psychological well-being
Long-term well-being
The project centers on the idea that people are driven by a desire to enhance their psychological well-being. Unlike short-term hedonic pleasures, such as the fleeting joy from a spontaneous purchase, the study emphasizes long-term well-being, which relates to how people perceive their lives and their ability to navigate their environment.
To determine which functions or aspects of retail have such effects on customers, Angelshaug and Andreassen initially used qualitative research methods. Six focus group discussions were held, segmented by age and gender. These discussions revealed themes central to how shopping experiences influence well-being.
Building on these findings, the researchers conducted a quantitative survey of 2,300 customers across Norway to validate their initial insights.
Key findings
From this, three focus areas were identified: sustainability, physical versus online store visits and shopping as an “escape”.
“Customer behavior and preferences when it came to sustainability, such as seeking out more sustainable products and stores, had a positive impact on psychological well-being. With other words: Engaging in sustainable shopping practices was shown to enhance psychological well-being,” Angelshaug explains.
While online shopping was noted for its convenience and its role in simplifying daily life, the study revealed that it had a negative effect on psychological well-being. This finding invites further debate on the underlying causes.
“Many people might recognize the feeling of life passing them by after spending long hours browsing on their phones, an experience that often leaves one disconnected from the world around them.”
Furthermore, using shopping as a way to unwind or for emotional relief had varied effects. Younger participants often found it uplifting, but older adults reported feeling worse, suggesting it doesn't always lead to greater life satisfaction. However, there were no gender differences.
Implications for retailers
These insights have several implications for how retailers should develop their offerings. For instance, many customers feel frustrated when they are faced with situations where they have two products, one more sustainable than the other, but the sustainable option is more expensive or less attractive in other ways. This puts them in a tough spot repeatedly.
“If stores could be clearer about prioritizing sustainable options and avoid putting customers in difficult decision-making situations, it would help. Transparency about sustainability initiatives and making this information easily accessible to customers would also be very beneficial. We are seeing that this approach has a strong positive effect on customers' well-being,” Angelshaug adds.
The researchers hope their findings will inspire retailers to adopt customer-centric models that focus on well-being.
“If retailers focus on enhancing customer well-being through sustainable practices and meaningful experiences, they’ll see customers returning, creating a positive loop that benefits both parties,” he states.