Shopping in downtown: The effect of urban environment on service quality perception and behavioural intentions

Purpose: This study analyzes the influence of three selected physical components of the urban environment - physical design, space layout and functionality and store external appearance - on consumers’ perception of service quality and behavioural intentions (desire to stay and repatronage intentions). Design/methodology/approach: The research framework is based on the atmospherics, servicescape and service quality literatures. The proposed model is tested with a survey conducted into an inner-city shopping street in Benevento (Italy). Findings (mandatory): Results show that physical space functionality and store appearance provide cues upon which customers base their perception of service quality provided in the shopping street and that service quality inferences, in turn, are able to affect desire to stay and repatronage intentions. Practical implications: Findings are able to provide policy makers and retailers with suggestions in developing appropriate strategies for managing the urban setting with particular reference to individual shopping streets with the objective of improving customers’ perception of service quality and subsequent behavioural outcomes. Originality/value: The paper contributes to both retail and place marketing literature in that it is one of the few empirical study aiming to investigate the influence of atmospheric stimuli on consumers’ perception in an urban setting.