Servicescape Example
Servicescape Example
Ozge Yalinay, Ian W F Baxter, Elaine Collinson, Ross Curran, Martin Joseph
Gannon, Sean Lochrie, Babak Taheri & Jamie Thompson
To cite this article: Ozge Yalinay, Ian W F Baxter, Elaine Collinson, Ross Curran, Martin
Joseph Gannon, Sean Lochrie, Babak Taheri & Jamie Thompson (2018): Servicescape
and shopping value: the role of negotiation intention, social orientation, and recreational
identity at the Istanbul Grand Bazaar, Turkey, Journal of Travel & Tourism Marketing, DOI:
10.1080/10548408.2018.1475277
CONTACT Babak Taheri, Associate Professor, [Link]@[Link] School of Social Sciences, Heriot-Watt University, Edinburgh, EH4 4AS, UK
© 2018 Informa UK Limited, trading as Taylor & Francis Group
2 O. YALINAY ET AL.
environment of a service setting, which influences disciplines (Baker, 1986; Daunt & Harris, 2011; Turley &
consumer perceptions and visitor–employee interac- Milliman, 2000; Wakefield & Blodgett, 2016). The term
tions therein. atmospherics was first employed by Kotler (1973, p. 50)
The influence of the environment on the visitor when referring to “the conscious designing of space to
experience is recognised across environmental psychol- create certain effects in buyers”, where it was viewed as
ogy and marketing literature (Bitner, 1992; Clitheroe, a marketing tool in relation to the influence of sur-
Stokols, & Zmuidzinas, 1998; Dagger & Danaher, 2014; roundings on the behavioural responses of individuals.
Mari & Poggesi, 2013). Mehrabian and Russell (1974) Its focal premise is that the environment affects indivi-
describe environmental psychology theory as the duals’ behaviour via emotional mechanisms that can be
sequential interactions between environmental stimu- controlled in perceivable ways through design prefer-
lus (the servicescape), the individual’s emotional state, ences (Alfakhri et al., 2018). However, a wider perspec-
and their subsequent response. Clitheroe et al. (1998, p. tive on atmospherics was suggested by Mehrabian and
104) suggest that “. . . dynamic models of the environ- Russell (1974), who analysed consumer perceptions of
ment and behaviour should identify those personal environmental stimuli. Their model demonstrates a
factors descriptive of the individual and group, and cause-and-effect relationship between environmental
their interaction, relevant to the context under consid- factors, individuals’ emotional states, and their
eration”. Cognizant of Behaviour Setting Theory (Barker, approach or avoidance behaviour (Donovan &
1968), Tombs and McColl-Kennedy (2003) suggest that Rossiter, 1982; Mehrabian & Russell, 1974). The indivi-
the occasion-specific aspects of service settings influ- duals’ emotional state is an important mediating vari-
ence their physical characteristics and shopper’s beha- able induced by the physical environment in
vioural outcomes. In this case, servicescape is influencing behavioural responses (Donovan &
influenced by both occasion and travel-specific charac- Rossiter, 1982; Wakefield & Blodgett, 1994) as consu-
teristics (negotiation intention, recreational shopper mers react emotionally to their physical surroundings
identity, social shopping orientation) that subsequently such as store layout, background music, lighting, and
influence the visitors’ behavioural response (overall interior design (Lee, Lee, Choi, Yoon, & Hart, 2014;
shopping value). Therefore, it is important for urban Morin, Dubé, & Chebat, 2007).
tourism planners and managers to understand the Focussing on the importance of the physical envir-
potential components that affect how visitors evaluate onment, Bitner (1992) constructed a model which iden-
the destinations they visit (Durna, Dedeoglu, & tified servicescape as an extension of Mehrabian and
Balikçioglu, 2015; Wakefield & Blodgett, 2016; Weaver, Russell’s (1974) work. Servicescape, as a conceptual fra-
Weber, & McClearly, 2007). Based on the above, this mework, has been widely used when referring to the
study contributes to travel and tourism discourse on “physical environment” (Baker, 1986), “store atmo-
two fronts. First, it examines the role of occasion-spe- sphere” (Donovan & Rossiter, 1982), “built environment”
cific factors within the behaviour settings theory in (Wakefield & Blodgett, 1994), and “marketing environ-
servicescape within a heritage tourism context ment” (Turley & Milliman, 2000). A servicescape is where
(Istanbul Grand Bazaar). Second, it explores the relation- service encounters take place, and it consists of many
ship between servicescape and the aforementioned tangible and intangible components (Hoffman &
occasion-specific behaviour settings factors, and their Turley, 2002). These include: overall layout, architecture,
subsequent impact on behavioural outcomes within the interior decor, temperature, lighting, and scent, which
Bazaar. In doing so, the paper builds and tests a con- together influence consumers’ cognitive, emotional,
ceptual framework in order to explore factors impacting and physiological responses (Alfakhri et al., 2018; Lee
upon servicescape in the context of the Istanbul Grand et al., 2014).
Bazaar. Moreover, it extends the current understanding Further, a servicescape “evokes emotions which help
of the impact of negotiation intention, recreational determine value so motivating customers to patronize a
shopper identity, and social shopping orientation on given choice repeatedly” (Babin & Attaway, 2000, p. 93),
both servicescape and overall shopping value, sup- and it influences consumers’ behavioural responses and
ported by theoretical contributions, managerial implica- employees’ productivity and satisfaction (Bitner, 1992;
tions, and suggestions for future research. Parish, Berry, & Lam, 2008). In addition to ambient and
design factors, the components of the physical stimuli
contribute to social interactions between customers and
Literature review
service providers (Zeithaml, Bitner, & Gremler, 2006).
The role of the physical component of the retail envir- Rosenbaum and Massiah (2011, p. 475) suggest that, “cus-
onment has received sustained attention across tomer approach/avoidance decisions are influenced not
JOURNAL OF TRAVEL & TOURISM MARKETING 3
only by physical stimuli but also by social, humanistic takes place in independent shops and local markets,
stimuli”. Thus, social factors contribute significantly to where customers haggle with shopkeepers for the
shaping the overall service experience (Choo & best possible prices (Lee, 2000). From an economic
Petrick, 2014). With regard to travel and tourism services- perspective, bargaining relates to value for money
capes, the relevance is no less important. Developments (Tsang, Tsai, & Leung, 2011), where both parties decide
across the industry induce a competitive tourism market- a product’s value through negotiation before reaching
place, where service-centred destinations or attractions a final agreement (Kozak, Correia, & Del Chiappa, 2017).
must exhibit a degree of physical distinctiveness in order Alongside economic gain, the pursuit of low prices may
to be considered exotic or novel by tourists (Bonn, also stimulate subjective value for consumers, such as
Joseph-Mathews, Dai, Hayes, & Cave, 2007). With this in psychological well-being and a sense of achievement
mind, an attraction’s environmental stimuli can be (Cox, Cox, & Anderson, 2005). Bargaining is accepted as
curated in order to enhance visitors’ experiences (Bonn a social practice (Kozak, 2016), which enhances the
et al., 2007; Risitano, Sorrentino, & Quintano, 2017). The shopping experience (Tsang et al., 2011), leading to
success of leisure activities and attractions are contingent overall satisfaction (Cox et al., 2005). Hence, bargaining
on visitor perceptions of the servicescape, as the physical with local vendors can be a source of pleasure as well
surroundings play a significant role in defining tourists’ as being of monetary benefit (Cox et al., 2005; Darke &
level of satisfaction (Wakefield & Blodgett, 2016) and their Dahl, 2003). Lee (2000) suggests that differences in
subsequent behaviours (El Sayed, Farrag, & Belk, 2003). consumers’ general bargaining attitudes influence
Further, environmental and social factors influence tour- their intention to engage in negotiations. A more posi-
ists’ value perceptions (Wakefield & Blodgett, 2016), and tive attitude towards retail bargaining induces higher
Yuksel (2007) and Bäckström (2006) suggest that these levels of bargaining intention (Lee, 2000), resulting in
servicescape elements encourage tourists to engage with higher levels of satisfaction and a greater likelihood to
retail spaces. recommend and revisit a site or destination (Tsang
et al., 2011; Wieseke, Alavi, & Habel, 2014). Cognisant
of this, the physical environment of a service setting or
Effect of negotiation intention on servicescape
destination has a significant impact on visitors’ inten-
Negotiation is a transactional process where actors col- tion to engage and negotiate with local vendors, as
laborate to make a decision by reaching a mutually Bitner (1992) suggests that environmental factors
acceptable agreement (Raiffa, Richardson, & often improve the nature and quality of social interac-
Metcalfe, 2007). The communication literature widely tions between hosts and guests, resulting in higher
acknowledges that negotiation is a process of social intention to engage in bargaining during the visit
interface, collaborative and interactive decision-making, (Lee, 2000). Therefore, we propose the following
bargaining, and conflict-management (Raiffa hypothesis (H):
et al., 2007). Various approaches to negotiation have
been posited, with the most common being distributive H1: Negotiation intention is positively related to
and integrative strategies. Distributive negotiation is servicescape.
considered as a win–lose or zero-sum situation, with
both parties aiming to maximise their gain from the
process itself (Goering, 1997). In a distributive strategy,
Effect of recreational shopper identity on
each party generally behaves in a tactical manner by
servicescape
providing optimal offers, threats, or unconditional con-
cessions (Goering, 1997; Raiffa et al., 2007). Conversely, Shopping plays a significant role in many tourists’ travel
integrative negotiation generates a win–win situation experience (Jansen-Verbeke, 1994; Kemperman,
where parties attempt to maximise joint gains, creating Borgers, & Timmermans, 2009; Timothy, 2005;
a variable-sum situation where both benefit equally Yuksel, 2007). Shopping while travelling is considered
(Raiffa et al., 2007) and reach a mutually acceptable recreational (Yuksel, 2007) and frequently emphasised
solution. Thus, distributive and integrative approaches as an important travel motivation (Timothy, 2005).
to negotiation comprise tactics and behaviours imple- Recreational shopping is an enjoyable and entertaining
mented during the bargaining process. activity, influencing consumer behaviour and percep-
Bargaining is a subset of negotiation in which both tion (Guiry, Magi, & Lutz, 2006). Recreational shoppers
parties adopt a competitive approach (Darke & have been labelled as “enthusiasts” (Arnold &
Dahl, 2003). Bargaining over price is ingrained in the Reynolds, 2003), whose enjoyment is derived mainly
culture in some countries (Kozak, 2016). Generally, it from the shopping environment (Bellenger &
4 O. YALINAY ET AL.
Korgaonkar, 1980). These consumers are likely to revel an opportunity to socialise through face-to-face inter-
in every aspect of the shopping experience. Guiry actions and bonding experiences (Arnold &
et al. (2006) studied the recreational shopper identity Reynolds, 2003), whereas task-oriented consumers
scale to examine and understand consumers’ self-con- focus purely on the transaction. Socially-oriented shop-
cept, based on their experiences in relation to hedonic pers engage “in shopping primarily to satisfy needs
attitudes. The concept of recreational shopper identity unrelated to the acquisition of products” (Westbrook &
is defined as a dimension that relates to one’s subjec- Black, 1985, p. 80). A predisposition to reciprocal inter-
tive expression of self through recreational shopping action is regarded as a characteristic of a social shop-
activities (Guiry et al., 2006). Consumers with a powerful ping orientation. As such, social shoppers pursue
recreational shopper identity are more likely to have a interpersonal relations, communication with others,
sense of excitement and pleasure regarding their shop- and typically prefer group attractions (Arnold &
ping activity (Guiry et al., 2006). A high level of recrea- Reynolds, 2003; Srivastava & Kaul, 2014).
tional shopper identity also demonstrates that Meng and Xu (2012) state that, while travelling,
consumers are more likely to express their self-identity, shoppers differ in whether they behave in a social or
fully explore the service environment, and spend more task-oriented manner. Socially engaged tourists are
time at the places they visit (Hawkins, Bougoure, & more likely to seek opportunities to interact with local
Larry, 2009). people, other customers, and service providers in order
Extant research demonstrates that the shopping to develop connections between themselves and
environment plays a significant role in consumers’ others in the places they visit (Yu & Littrell, 2003).
behavioural responses (Bitner, 1992; Morin Further, social aspects assist in generating the overall
et al., 2007), with Donovan and Rossiter (1982) suggest- service experience along with environmental cues
ing that pleasing perceptual aspects of the retail envir- (Harris & Ezeh, 2008; Tombs & McColl-Kennedy, 2003).
onment positively influence shopping activity. While Bitner’s (1992) servicescape framework does not
Irrespective of product purchase, recreational shoppers include social factors, she suggests that social interac-
are likely to seek shopping experiences and attach tions are considered as the outcome of the consumers’
greater importance to store environment (Ballantine, response to the service environment. However, Hu and
Jack, & Parsons, 2010), leading to positive approach Jasper (2006) claim that consumers have a more posi-
behaviour. Similarly, Cox et al. (2005) suggest that tive attitude towards a service setting when a greater
recreation-oriented shoppers derive enjoyment from range of social cues were presented in a store environ-
browsing the environment. Further, Yuksel (2007) posits ment. Therefore, social attributes are not only apparent
that this environment has a significant impact on in the interaction between consumers and service pro-
approach behaviour while shopping on vacation. As viders, but also contribute to the consumers’ relation-
such, the physical environment of a service setting ship with the environment itself. Therefore we propose
plays a significant role in boosting shoppers’ pleasure the following hypothesis:
and enjoyment (Bäckström, 2006; Ballantine et al., 2010;
Jones, 1999). As such, it is hypothesised: H3: Social shopping orientation is positively related to
servicescape.
H2: Recreational shopper identity is positively related
to servicescape.
Effect of occasion-specific behaviour settings
factors and servicescape on shopping value
Effect of social shopping orientation on
Shopping value is a subjective response, “character-
servicescape
ized by consumers’ interactions with an environment”
Shopping orientation is associated with a disposition to (Babin et al., 1994, p. 654). More specifically, consu-
engage in shopping activity and is conceptualised mers’ perceived value is indicated not only by the
through lifestyle features including attitude, opinions, product but also by the overall shopping experience
and interests (Bellenger & Korgaonkar, 1980). Research (Edvardsson, Enquist, & Johnston, 2005). Shopping is
on shopping orientation focuses on two fundamental a recreational activity for some consumers, whilst
dimensions: hedonic and utilitarian orientation (Babin, others view it as a task to be completed for utilitarian
Darden, & Griffin, 1994), where individuals are either purposes (Guiry et al., 2006). Thus, shopping value
socially-oriented or task-oriented (Baker & can be derived from both a utilitarian and a hedonic
Wakefield, 2011). Socially-oriented shopping provides stimulus (Babin et al., 1994). Utilitarian value emerges
JOURNAL OF TRAVEL & TOURISM MARKETING 5
from the intentional pursuit of an intended shopping H4: Servicescape is positively related to overall shop-
outcome (Babin et al., 1994), and relates to functional ping value.
and rational shopping behaviour (Ryu, Han, &
Jang, 2010). Shoppers driven by utilitarian motives H5: Negotiation intention is positively related to over-
see it as a task to be completed as efficiently as all shopping value.
possible (Baker & Wakefield, 2011). They may appraise
their shopping experience based on the tangible H6: Recreational shopper identity is positively related
characteristics of products and services obtained to overall shopping value.
(Babin et al., 1994). In contrast, hedonic shopping
value stems from non-purchase motives (Hirschman H7: Social shopping orientation is positively related to
& Holbrook, 1982), where consumers actively seek overall shopping value.
recreational experiences involving enjoyment, excite-
ment, and aesthetic pleasure while shopping (Babin
et al., 1994).
Tourists ascribe considerable importance to unique Methodology
architecture, local culture, and appealing physical set-
Measures and sample description
tings (Kinley, Josiam, & Kim, 2003). Yuksel (2007) sug-
gests that there is a strong relationship between The Istanbul Grand Bazaar, founded in 1461, is one of
perceived atmospherics and tourists’ emotional states, the world’s largest and oldest historical trade centres
where tourists with positive attitudes to a service (Koroglu, Eceral, & Ugurlar, 2009). In the fifteenth
setting are likely to experience higher levels of shop- century, two bedestens (covered craft markets) were
ping value. Similarly, Baker, Parasuraman, Grewal, and constructed to generate finance for the Ayasofya
Voss’s (2002) findings demonstrate that atmospheric Mosque (Gülersoy, 1980). Later, the bedestens
factors in service settings significantly influence per- evolved to become the core of the Bazaar enjoyed
ceived shopping value, enhancing consumers’ beha- by locals and tourists alike to this day. Over the
vioural intentions. Tourists also seek both functional centuries, the structure of the Bazaar has morphed
and experiential benefits offered by service attributes into its current contemporary plan (Gharipour, 2012).
as well as product acquisition on vacation (Yu & Today’s complex structure consists of hamams (tradi-
Littrell, 2005). For example, intention to negotiate tional Turkish baths), a number of hans (commercial
with service providers and vendors may provide utili- buildings), two mosques, several cafés, and restau-
tarian value, with tourists obtaining a discount (Kozak rants. The Bazaar contributes significantly to the
et al., 2017), whilst also providing hedonic value for city’s economy and remains a central place for the
some who feel a sense of achievement and excite- jewellery industry and other craft entrepreneurs. With
ment during the negotiation process (Tsang more than 3000 shops and 64 covered streets, it
et al., 2011; Yu & Littrell, 2005). An enjoyable shop- offers a variety of traditional products including
ping experience is an important hedonic benefit; with antiques, carpets, spices, artworks, and Turkish handi-
recreational shoppers experiencing higher levels of crafts, as well as an authentic atmosphere, where it
value in this regard (Babin et al., 1994). Recreation- serves as hub of commercial and social activity
oriented tourists view shopping as a leisure activity (Gharipour, 2012). In terms of social activity, pazarlık
involving several outcomes such as length of stay, (the haggling process) is a traditional culture in
increased planned or unplanned purchasing, and a Turkey and an important aspect of the shopping
more positive assessment of the store environment experience throughout the Bazaar. During the hag-
(Jansen-Verbeke, 1991). Tourists who consider their gling process, buyers and sellers interact verbally
experience valuable are more likely to revisit a desti- regarding the price of an item and the deal is sealed
nation (Yuksel, 2007). Many tourists also seek certain with a handshake. Along with haggling, shopping in
experiences in store environments, such as social the Bazaar encompasses many aspects of Turkish cul-
interaction with service providers and other shoppers ture, such as offering a cup of tea to welcome visitors.
(Yuksel, 2007) to fulfil their emotional and psycholo- Today, the Bazaar plays an important role in the
gical needs (Bitner, 1992). Therefore, interpersonal economy of the country, attracting a wide range of
relationships represent a significant component of international and domestic tourists. Since its establish-
the experience, influencing individuals’ overall per- ment, it has provided trade and craft activities whilst
ceived shopping value (Baker & Wakefield, 2011). reflecting the city’s social and cultural identity
Within this context, it is postulated that: (Gülersoy, 1980; Koroglu et al., 2009).
6 O. YALINAY ET AL.
In order to test the hypotheses (Figure 1), data servicescape scale was adapted from Dagger and
was collected via a self-administered, online, cross- Danaher (2014). Finally, to measure overall shopping
sectional survey collected during a four-week period value, two dimensions of this construct were
in July 2015. The sample consisted of Western tour- employed from Arnold and Reynolds (2009), who
ists who had visited the Bazaar. Both judgemental argue for the potential use of second-order con-
and snowball non-probability sampling techniques structs (hedonic value (seven-item scale) and utilitar-
were used to collect data. To collect the data the ian value (four-item scale)) to capture this
questionnaire was distributed online, using the phenomenon. MacKenzie, Podsakoff, and
Survey Monkey ([Link]). Jarvis (2005, p. 715) state that a higher-order mea-
Judgemental and snowball sampling are effective surement “faithfully represents all of the conceptual
ways of collecting data with the aim of theoretical distinctions that the researcher believes are important
development rather than generalisation (Bryman & and provides the most powerful means of testing and
Bell, 2015; Wells, Taheri, Gregory-Smith, & evaluating the construct”.
Manika, 2016). In practice, the research team first
contacted participants who had travelled to the
Common method variance (CMV)
Istanbul Bazaar recently via social media websites
(e.g. Facebook, Twitter, LinkedIn). Second, the A potential violation of common method bias in this
research team asked these participants to distribute study was tested (Podsakoff, MacKenzie, Lee, &
the questionnaires among their friends or relatives Podsakoff, 2003; Taheri, 2015). Dependent and indepen-
who had also visited the Istanbul Grand Bazaar dent variables were placed in different parts of the survey.
recently. A total of 325 questionnaires were col- Two statistical tests were used to detect a possible viola-
lected with some (25) excluded due to non-response tion of CMV. First, Harman’s single factor to test was
and inaccuracy. The final sample consisted of 300 employed. The findings of the exploratory factor analysis
valid questionnaires, yielding an acceptable (EFA) indicated nine factors with Eigenvalues greater than
response rate of 92%. 1, with the highest portion of variance presented by one
With regard to the demographic characteristics of factor, 28.184% (Podsakoff et al., 2003). Second, following
the respondents, 63% of the respondents were Liang, Saraf, Hu, and Xue’s (2007) procedure, a common
female and 37% were male, with 70% European, method factor was included in the partial least squares-
18% North American, 8% Australian, and 4% South structural equation modelling (PLS-SEM) model. While the
American. Regarding age, the majority of respondents constructs of the model explain 0.64 on average, the
were between the ages of 25 and 34 years (56%). As common method factor only explains 0.01 on average,
for marital status, 84% were single. With regard to yielding a ratio of 64:1. As such, CMV was not a concern
education levels, the majority (62%) held bachelor for this study.
degrees, followed by Master’s degrees (32%), high
school graduates (4%) and doctoral degrees (2%).
Results
Almost 56% of respondents reported to be in full-
time employment. PLS-SEM was employed as the method of analysis as
In order to safeguard content validity, constructs it can deal with small sample sizes (Hair, Hult, Ringle,
were employed from existing scales established Sarstedt, & Thiele, 2017). Further, this approach is
within the literature. Items were measured with a 7- based on variance compared with other covariance-
point Likert scale (from 1 = strongly disagree to based approaches, enabling it to deal with more
7 = strongly agree). The negotiation intention scale complex models when compared with covariance-
was taken from Lee (2000) and comprises three items: based SEM. Thus, it is suitable for exploratory quan-
intention to bargain prior to purchase; intention to titative studies (Wells et al., 2016). Finally, PLS-SEM
negotiate down the price prior to purchase; and a can be employed for different measurement con-
good price expectation prior to purchase. The five- structs including reflective, formative, and higher-
item recreational shopper identity scale was adapted order constructs (Hair et al., 2017).
from Guiry et al. (2006). This construct was used to
evaluate the tourists’ self-concept. It consisted of
Analysis of reflective measurement models
items relevant to recognising, pleasing, or expressing
one’s self through shopping activity. The three items The reliability and validity of the reflective constructs
pertaining to shopping orientation were borrowed was assessed using composite reliability (CR), Dijkstra–
from Arnold and Reynolds (2003), and the 12-item Henseler’s rho (PA), factor loadings, and average
JOURNAL OF TRAVEL & TOURISM MARKETING 7
variance extracted (AVE). All CR and PA values surpassed Analysis of higher-order model
the cut-off point of 0.7. Further, the factor loadings
reported values above the obligatory threshold of 0.6 EFA was used to investigate whether the overall shop-
(Hair, Black, Babin, & Anderson, 2010). The AVE ping value construct was a higher-order construct
exceeded the threshold of 0.5 for all constructs (Hair reflectively illustrated by two lower-order factors. We
et al., 2010; Hair et al., 2017) (Table 1). Discriminant found that the overall shopping value construct was
validity was assessed with Fornell and Larcker’s (1981) represented by two factors (hedonic and utilitarian
criterion, which requires a construct’s AVE to be super- value). All items had a loading value above the mini-
ior to the square of its largest correlation with any mum threshold (0.4) for each dimension (Field, 2006).
construct (Table 2). The hedonic values and utilitarian values first-order
H5
Negotiation
intention
H1
Social shopping
orientation
H7
0.233; ƒ2 = 0.092
Servicescape 0.965
0.240; ƒ2 = 0.058 R2=0.142 Overall shopping
Recreational value
shopper identity
R2=0.491
0.133; ƒ2 = 0.092 0.843
0.269; ƒ2 = 0.118
constructs also reported CR, PA, and AVE values above significant direct paths, all direct paths were above 0.02
the required threshold (see Table 1). The repeated and therefore satisfactory (Henseler, Ringle, & Sinkovics,
measures approach for estimation of the hierarchal 2009) (see Figure 2). The standardised root mean square
component models (HCMs) procedure in PLS-SEM was residual (SRMR) model fit criterion was employed (Hair,
used to assess the validity of the second-order con- Hult, Ringle, & Sarstedt, 2016). The SRMR value was
struct (Becker, Klein, & Wetzels, 2012; Lee, Hallak, & 0.067, which is below the recommended value of 0.08.
Sardeshmukh, 2016). In practice, (1) all items were The PLS-SEM model explained 14% of servicescape and
assigned reflectively to their respective main dimen- 49% of overall shopping value. As Figure 2 demon-
sions; (2) all items were assigned to the second-order strates, negotiation intention positively influenced ser-
construct; and (3) the first-forder constructs (hedonic vicescape (H1: β = 0.117, t = 2.832, p < 0.05).
values and utilitarian values) were linked reflectively to Recreational shopper identity also positively affected
the second-order construct. The results demonstrate servicescape (H2: β = 0.240, t = 4.537, p < 0.001), as
that the association between the overall shopping did social shopping orientation (H3: β = 0.133, t = 2.084,
value construct and the first-order constructs was sig- p < 0.05). In support of H4, the results indicate a posi-
nificantly higher than 0.5 (Figure 2). Therefore, the find- tive relationship between servicescape and overall
ings support the assertion that overall shopping value is shopping value (β = 0.390, t = 7.579, p < 0.001).
a second-order construct underpinned by two first- Further, negotiation intention (H5: β = 0.233,
order constructs. t = 5.194, p < 0.001) and recreational shopper identity
(H6: β = 0.269, t = 5.547, p < 0.001) significantly influ-
enced overall shopping value. However, social shop-
Structural model and key results
ping orientation did not have a significant effect on
The non-parametric bootstrapping technique with 300 overall shopping value (β = 0.017, t = 1.540). Thus, H7
cases, 5000 subsamples was used (Hair, Hult, Ringle, & was rejected. Following Lee et al.’s (2016) recommenda-
Sarstedt, 2014). Following Cohen’s effect size (ƒ2) for the tion, the correlations between each dimensions of
JOURNAL OF TRAVEL & TOURISM MARKETING 9
Table 3. Correlations between overall shopping value dimensions and other related constructs.
Dimensions Correlations Lower bound CI Higher bound CI
Negotiation intention <-> Hedonic value 0.350*** 0.254 0.487
Recreational shopper identity <-> Hedonic value 0.294*** 0.189 0.368
Social shopping orientation <-> Hedonic value 0.157 n.s. 0.101 0.200
Servicescape <-> Hedonic value 0.285*** 0.155 0.370
Negotiation intention <-> Utilitarian value 0.167*** 0.107 0.256
Recreational shopper identity <-> Utilitarian value 0.257*** 0.189 0.350
Social shopping orientation <-> Utilitarian value 0.098 n.s. 0.067 0.132
Servicescape <-> Utilitarian value 0.368*** 0.303 0.429
Significant at *t > 1.96 at p < 0.05; **t > 2.57 at p < 0.01; ***t > 3.29 at p < 0.001; n.s.: non-significant.
CI: confidence interval.
overall shopping value and the aforementioned related Conclusions and research implications
constructs were examined (Table 3). The results indicate
This study investigated the relationship between nego-
that there are significant positive relationships between
tiation intention, recreational shopper identity, and
the majority of the related constructs and hedonic
social shopping orientation on servicescape and overall
value and utilitarian value. However, there are no sig-
shopping value in the context of the Istanbul Grand
nificant relationships between social shopping orienta-
Bazaar. A structural model was developed to examine
tion and either hedonic value or utilitarian value, which
the hypotheses, and theoretical and managerial impli-
further emphasises the nature of the results.
cations are outlined below. The findings extend the
existing application of environmental psychology the-
Post-hoc analysis of indirect effects ory and behaviour setting theory (Barker, 1968; Clithero
et al., 1998; Mehrabian & Russell, 1974; Tombs & McColl-
The results of the PLS-SEM suggested the potential
Kennedy, 2003), both of which serve as theoretical
existence of mediating relationships between some
bases for this study. It is possible that the occasion-
constructs. Following Williams and MacKinnon (2008)
specific aspects of the behaviour settings theory (nego-
and Gannon, Baxter, and Yalinay (2017), bootstrapping
tiation intention, recreational shopper identity, and
analysis for the significance of indirect effects, consider-
social shopping orientation) could be important expla-
ing the t-values and the confidence interval (CI), was
natory constructs for traditional marketplace (e.g.
used (Table 4). The results indicate that negotiation
Istanbul Bazaar) management. In other words, the
intention indirectly influences overall shopping value
results confirm that negotiation intention, social shop-
through servicescape (95%, CI: 0.102–0.173). As the
ping orientation, and recreational shopper identity can
direct impact was also significant, the results revealed
influence consumers’ emotional connection to the ser-
that servicescape partially mediates the influence of
vicescape and may significantly predict the utilitarian
negotiation intention on overall shopping value.
and hedonic values derived from the shopping experi-
Similarly, recreational shopper identity indirectly influ-
ence. Interestingly, consumers’ social shopping orienta-
enced overall shopping value through servicescape
tion did not influence overall shopping value in our
(95%, CI: 0.047–0.127). Again, since the direct influence
model. Moreover, Table 3 demonstrates that the occa-
was also significant, the findings reveal that services-
sion-specific aspects of the behaviour settings theory
cape partially mediates the influence of recreational
had varying effects on both dimensions of overall shop-
shopper identity on overall shopping value. Finally,
ping value. Negotiation intention had the strongest
social shopping orientation influences overall shopping
relationship with hedonic value, whereas servicescape
value through servicescape (95%, CI: 0.108–0.169).
had the strongest relationship with utilitarian value.
However, since the direct influence was not significant,
Correlation results also indicate that there was no sig-
the results instead demonstrate that servicescape fully
nificant relationship between social shopping orienta-
mediates the influence of social shopping orientation
tion and both dimensions (hedonic and utilitarian) of
on overall shopping value.
overall shopping value. Thus, the results enrich the Reynolds, 2003; Baker & Wakefield, 2011; Tombs &
extant literature on service experience and shopping McColl-Kennedy, 2003) and immerse themselves in the
behaviour, which is promising area for scholars in tour- cultural context during their travel (Meng & Xu, 2012).
ism services marketing (cf. Dong & Siu, 2013). Intention to engage in negotiations also influences
Additionally, as consumers are expected to interact overall shopping value when mediated by servicescape.
extensively with servicescape elements in traditional This suggests that social recognition and sense of
shopping service encounters, servicescape can signifi- achievement, along with saving money, combine to
cantly mediate the relationship between occasion-spe- contribute to the utilitarian and hedonic value of bazaar
cific behaviour settings factors (negotiation intention, shopping. This echoes the findings of Tsang et al.
social shopping orientation, and recreational shopper (2011), who studied the bargaining behaviour of tour-
identity) and overall shopping value. ists in open-air markets. In the case of the Istanbul
First, the relationships between negotiation inten- Grand Bazaar, visitors indicated that they were likely
tion, recreational shopper identity, and social shopping to hunt for bargains, resulting in increased perceived
orientation were tested. Our findings indicate that value (Kozak et al., 2017; Yu & Littrell, 2005) and loyalty
intention to engage in bargaining with service provi- (Wieseke et al., 2014). Likewise, our findings suggest
ders positively influences tourists’ perceptions of the that recreational shopper identity has a positive rela-
servicescape. Corresponding to extant research (Cox tionship to overall shopping value. This supports pre-
et al., 2005; Tsang et al., 2011), our findings suggest vious studies (Babin et al., 1994; Guiry et al., 2006),
that tourists’ intention to negotiate is closely related to indicating that consumers with a strong recreational
both the psychological aspects and financial benefits shopper identity are likely to experience several leisure
that contribute to overall satisfaction. This supports dimensions while shopping. In the case of the Bazaar,
Tsang et al.’s (2011) assertion that tourists engage in there are a number of attractions and characteristics
bargaining activities in order to benefit from dis- that facilitate this, such as the variety of products, the
counted prices. The findings also suggest that bargain- diversity of shops and services, the unique atmosphere,
ing rewards tourists with a sense of pride and and the social functions that enable recreational shop-
achievement. As a result, they are more likely to make pers to enjoy the hedonic benefits of the shopping
a subsequent visit to similar historic markets and share experience.
their positive impression via word-of-mouth recom- Surprisingly, no direct relationship was found
mendations (Gannon et al., 2017; Line, Hanks, & between social shopping orientation and overall shop-
Kim, 2015). Thus, the findings demonstrate that when ping value. While individuals who view shopping as a
tourists are provided with the opportunity to bargain social pursuit are likely to enjoy the shopping activity
with local vendors, they are likely to hold more favour- itself and patronise retail spaces as a form of entertain-
able attitudes towards the physical and social environ- ment (Baker & Wakefield, 2011), the need for dyadic
ment of the Bazaar. relationships may be influenced by different factors,
Second, consumers with a strong recreational shop- resulting in lower levels of pleasure. Shopping orienta-
per identity are found to be motivated by enjoyment tion is often situation-specific (Baker & Wakefield, 2011);
(Guiry et al., 2006). In line with previous studies therefore, their response may differ depending on inter-
(Ballantine et al., 2010; Bellenger & Korgaonkar, 1980), personal distance. However, while social shopping
our findings suggest that recreational shopper identity orientation does not directly influence overall shopping
had a direct positive effect on how tourists perceive the value, it does so when fully mediated by servicescape.
Bazaar’s atmosphere. Recreation-oriented visitors not For example, the friendliness of retail staff may be a
only consume products and services offered in the considerable source of positive influence for shoppers
Bazaar, but also enjoy the overall atmosphere and (Hennig-Thurau, Groth, Paul, & Gremler, 2006). Through
intangible aspects of the site. This study also found a our empirical analysis, servicescape was found to have a
positive relationship between social shopping orienta- positive relationship with overall shopping value
tion and tourists’ perceptions of servicescape. (Bitner, 1992; Donovan & Rossiter, 1982; Wakefield &
Considering the spatial and social characteristics of Blodgett, 2016), where the holistic environment of the
the Bazaar, visitors are likely to interact with both ser- Istanbul Grand Bazaar significantly enhances tourists’
vice providers and other customers in order to satisfy perceived hedonic and utilitarian values.
their needs irrespective of product acquisition. This study aids destination managers in determining
Confirming research on shopping orientation, consu- the factors that affect tourists’ perception of services-
mers driven by social motives tend to prefer face-to- cape characteristics in traditional marketplaces (e.g.
face interactions with local people (Arnold & Istanbul Grand Bazaar), and the impact this has on
JOURNAL OF TRAVEL & TOURISM MARKETING 11
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