Atmospheric experiences thatemotionally touch customers

A case study from a winter park

Terje Slatten and Mehmet MehmetogluLillehammer University College, Lillehammer, Norway, and

Goran Svensson and Sander SværiOslo School of Management, Oslo, Norway

Abstract

Purpose – This study aims to focus on what types of atmospheric experiences emotionally touchvisitors at a winter park. The objective is to describe and explain the relationship between: threeatmospheric constructs (ambience, interaction, and design); the construct of joy; and the construct ofcustomer loyalty.

Design/methodology/approach – The research data are based on a study of customers visiting aNorwegian winter park, in which 162 visitors participated in the survey. Confirmatory factor analysisand structural equation modeling were used to test the measurements and structural propertiesbetween atmospheric experiences, joy, and loyalty to winter parks.

Findings – The findings reveal that two out of the three constructs of atmospheric experiences arelinked to customers’ feelings of joy, namely, design and interaction. The atmospheric construct ofdesign had the strongest impact on customers’ emotions. Furthermore, the study finds that customers’feelings of joy are highly related to the construct of customer loyalty.

Research limitations/implications – The study limits its focus to one type of hedonic service,namely customers visiting a winter park. Although the results from the study offer implications forother winter parks, there is a need for further research in other hedonic services to verify their validity,reliability, and generality.

Practical implications – The study emphasizes how important it is that managers of hedonicservices consider the significance of the atmospheric construct of design in such a way that itcontributes positively to customers’ experiences of the service setting. In particular, managers shouldfocus on design in relation to customers’ experiences in order to evoke feelings of joy.

Originality/value – The study establishes the need to manage customers’ atmospheric experiencesin winter parks. It also links atmospheric constructs to customers’ emotions.

Keywords Customers, Perception, Theme parks, Norway

Paper type Research paper

IntroductionHedonic services, such as tourism, are good examples of experiences that are able toevoke customers’ emotions (e.g. Barsky and Nash, 2002; Otto and Ritchie, 1996; Ryan,1999). Otto and Ritchie (1996, p. 168) emphasize the inherent emotional component intourist services, stating that: “Perhaps more than any other service industry, tourismholds the potential to elicit strong emotional and experiential reactions by consumers”.The nature of these experiences is critical for the tourist industry, because intangibleexperiences are the core of their product or service (Yuan and Wu, 2008). Furthermore,the intimate, hands-on nature of the service encounter and elements of the physical

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Managing Service QualityVol. 19 No. 6, 2009

pp. 721-746q Emerald Group Publishing Limited

0960-4529DOI 10.1108/09604520911005099

environment both have the strong potential to elicit, emotional reactions (Wakefieldand Blodgett, 1994). In other words, the products and services of the tourist industryare always experiential (Williams, 2006), and, consequently, the outcome of suchexperiences may touch customers emotionally. In line with this reasoning, this studydefines customers’ experiences as processes that create cognitive, emotional, andbehavioral responses, resulting in a mental mark, or a memory (Johnston and Clark,2001).

The focus on emotional constructs is important when studying hedonic servicessuch as tourism. Duman and Mattila (2005) find that customers’ emotional experiencesduring a cruise vacation are important determinants of the perceived value of thecruise service. Kao et al. (2008) examine the effect of four types of experiential qualitiesas factors of experiential satisfaction and find that customers’ feelings of fun is theemotion mostly linked to experiential satisfaction. There are also other examples ofstudies using emotional components (e.g. Barsky and Nash, 2002; Bigne et al., 2005;Yuan and Wu, 2008).

There are basically two areas that so far have dominated the research on customers’experiences in service settings (Martin et al., 2008; Caru and Cova, 2005; Minor et al.,2004):

(1) Previous research has mainly focused on cognition when studying the effect ofcustomers’ experiences (Martin et al., 2008). Several recent studies, however,have criticized purely cognitive models for poorly explaining satisfaction withservices (e.g. Bagozzi, 1997; Bigne et al., 2005; Erevelles, 1998; Ladhari, 2007;Phillips and Baumgartner, 2002; Smith and Bolton, 2002). Some researcherssuggest emotional constructs as an alternative to cognitive satisfaction (e.g.Bigne et al., 2005; Liljander and Strandvik, 1997; Oliver et al., 1997; Slatten,2008; Wirtz and Bateson, 1999; Wong, 2004). Others mention the role ofemotions as a central construct in service-quality management, leading to callsfor further research on emotions (e.g. Babin and Griffin, 1998; Cronin, 2003;Wong, 2004). Singh (2000) argues that there is a need for systematic studies onantecedents and effects of emotions in service research. Bigne et al. (2005, p. 833)support this view, noting that “. . . there is a lack of research on the emotionaleffects affecting consumer satisfaction and behavioural intentions whenconsumers are involved in a service setting”. There is, then, a need for furtherresearch on emotions in service settings.

(2) The focus that has so far dominated the research on customers’ experiences inservice settings is the investigation of constructs related to the quality of theservice experience delivery (Caru and Cova, 2005; Minor et al., 2004). Morespecifically, much research has been devoted to discussing and understandingthe role of the employee in the delivery of experience (Butcher et al., 2002;Edvardsson and Gustavsson, 2003; Gronroos, 2001; Hartline and Ferrell, 1996;Wirtz et al., 2008). Employees’ quality of service has been acknowledged as anessential source for satisfying customers’ experiences (Hartline et al., 2000).Although the impact of employees on customers’ experiences is certainlyimportant, we can assume that there are additional constructs that influence thecustomers’ experiences leading to emotional responses. Examples of suchconstructs could be:

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. interaction with other customers;

. music;

. lighting;

. temperature;

. architecture; and

. sound.

It seems that there is a lack of research that takes a broader view on constructs linkedto customers’ experiences in service settings. Heide and Grønhaug (2006) argue thatthere is need for more research on how atmospheric constructs influence customers’experiences in service settings. McGoldrick and Pieros (1998) point out the lack ofknowledge of the emotional effects of atmosphere in tourist attractions. Furthermore,Wakefield and Blodgett (1999, p. 53) observe: “Aspects of the design and decor of thephysical facilities as well as ambient factors are likely to influence customerperceptions and feelings, but have not been incorporated in service-quality research”.More thorough investigations of atmospheric experiences in relation to customers’emotional responses would thus address this lacuna.

Research objectiveBased on the overview of the previous studies, research focusing on the factorsinvolved in customers’ emotional responses in service settings would be avaluable contribution, both theoretically and practically. The present studyaddresses specifically how different atmospheric constructs are related tocustomers’ feelings.

The study focuses on what types of atmospheric experiences emotionally touchvisitors at a winter park. The objective is to describe and explain the relationshipbetween:

. the three atmospheric constructs (ambience, interaction, and design);

. the construct of joy; and

. the construct of customer loyalty.

In so doing, it is tested whether ambience, interaction, and design are causes of joy, andwhether joy is an effect of ambience, interaction, and design. It is also tested whetherloyalty is an outcome of joy. The conceptual model, labeled as a CEO-model (Cause(s),Effect(s), and Outcome(s)), is illustrated in Figure 1, condenses the hypothesizedrelationships into a generic framework.

Literature review and hypothesesThis section develops and describes the CEO-model, all of which is shown in Figure 1.Furthermore, the research hypotheses formulated are derived from previous studiesand existing theory.

Emotional satisfactionThe so-called “expectancy-disconfirmation theory” has been the dominant model forassessing satisfaction (Brookes, 1995; Liljander and Strandvik, 1997). According to thismodel, the cognitive confirmation (or disconfirmation) of expected service determines

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satisfaction (Danaher and Haddrell, 1996). Yi-Ting and Dean (2001) argue that a focuson the cognitive component of satisfaction and a relative neglect of the emotionalcomponent can lead to an inadequate understanding of the construct of satisfaction. Inthis regard, Cronin (2003) position emotion as a core attribute in satisfaction andsuggest that models of satisfaction should include a separate emotional component.Wirtz and Bateson (1999) also contend that a separation of the cognitive and emotionalcomponents is both necessary and valuable for modeling behavior in service settings.In this study, the emotional component of satisfaction is labeled as emotionalsatisfaction.

Joy and emotional satisfactionA generally accepted typology for categorization of emotions (or emotional satisfactionas it is labeled in this study) is to divide emotions into two groups: positive andnegative (e.g. Bagozzi et al., 1999; Chaudhuri, 1998; Liljander and Strandvik, 1997).

Some researchers use the construct frequently when measuring positive emotions ingeneral (e.g. Ekman, 1994; Richins, 1997; Shaver et al., 1987). Moreover, joy is oftenincluded under the general label of a “positive affect” in satisfaction research onemotions.

Certain studies depict joy as a distinct type of emotion in many theories of emotion(e.g. Johnston, 1999; Russell, 1980). Further, a perusal of the literature reveals theranking of joy as a highly positive emotion (e.g. Wright et al., 2007). Joy is also used tomeasure happiness. Diener et al. (1995) cluster joy together with love into a positiveaffective factor that they further cluster as a part of emotional wellbeing. In addition,studies of people’s psychological wellbeing regard joy (termed as “joyous”) as thehighly positive pole that captures a hedonic or pleasantness-based description (e.g.Wright et al., 2007). The feeling of joy relates to psychological wellbeing. A number ofscholars equate well-being more or less with happiness (e.g. Diener, 1994; Seligman,2002). Consequently, joy is closely related to these two emotions and can becharacterized as a highly positive emotion. It is reasonable to assume that joy impliesthe relative absence of negative emotions (e.g. frustration). Based on theseconsiderations and for the purposes of this study, joy is defined as a pleasantmental state that arises from appraisals of subjective experiences.

Figure 1.The CEO-model (cause,effect, outcome) – aresearch application ofcustomers’ atmosphericexperiences

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Atmosphere and customers’ experienceWinter parks may reasonably be seen as belonging to the group of hedonic services. Itis also reasonable to assume that customers’ experiences of atmosphere in hedonicservices are also able to evoke customers’ feeling of joy (e.g. Barsky and Nash, 2002;Otto and Ritchie, 1996; Ryan, 1999). Previous research has highlighted the importanceof customers’ experience of the atmosphere in service settings (e.g. Heide andGrønhaug, 2006; McGoldrick and Pieros, 1998; Pine and Gilmore, 1998; Schmitt, 1999).Gupta and Vajic (1999) write that an experience occurs when a customer has asensation or knowledge acquisition, or both, as a result of interaction with differentelements of a context created by a service provider.

In the literature, the construct of atmosphere relates to customers’ perception ofspecific components in different service contexts (e.g. Hansen et al., 2005; Troye andHeide, 1987). One study notes how atmosphere has been discussed as an important toolfor how one can change or influence customers’ attitudes and behaviors (Kotler, 1973).Bitner (1992) states that the construct of atmosphere is paramount for serviceorganizations because services are produced and consumed simultaneously. Thisspecial singular characteristic implies both that the customer will be exposed to theatmosphere of the ‘production site’ and that customers’ perceptions of the atmosphericqualities are related to customers’ responses (e.g. Heide and Grønhaug, 2006). Onecontributor to atmosphere is the physical environment, which Bitner (1992) describesas ‘servicescape’. Although servicescape is important in relation to customers’experiences, the construct of atmosphere embraces more than the physicalenvironment where services are delivered. The atmosphere may be divided intothree facets:

(1) Ambience.

(2) Interaction.

(3) Design (Heide and Grønhaug, 2006).

The following section describes each of these three atmospheric dimensions and theirrelationship to customers’ feeling of joy.

Ambience and customers’ feeling of joyAmbience relates to customers’ perceptions and experiences of the backgroundconditions in the environment (Milliman, 1986). Background conditions could imply arange of elements, such as:

. smell;

. scent;

. temperature;

. color;

. odour;

. air quality;

. sound; and

. lighting.

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In the literature, a number of facets of ambience are used, depending on characteristicsof the service offered and customer segment.

To the authors’ knowledge, no study has so far focused on the effect of ambience asa part of atmosphere and its relationship to customers’ feelings of joy in a winter-parksetting. However, from retailing, it is well known that the atmosphere could result incustomers becoming emotionally uplifted. For example, Sherman et al. (1997) find in astore setting that creative displays in the store were closely linked to customers’emotions. It is reasonable to assume that facets of ambience in a winter park, which arecreative displays made by the designer of the winter park, could have the same effecton customers’ emotions as do creative displays in a given store. An important goal fordesigners of a winter park (as for other parks) is to design the park in such a way that itcreates a pleasant and entertaining atmosphere and consequently induces a feeling ofjoy.

Much of the empirical research in atmospheric constructs focuses on the effect ofspecific facets of ambience in relation to customers (Wall and Berry, 2007). The presentstudy concentrates on the collective effect of different facets of ambience in relation tocustomers’ feeling of joy. It is limited to the focus of the three facets of ambience thatare found most relevant for this service setting. These ambient factors are:

(1) Sound.

(2) Light.

(3) Scent.

Sound is the most commonly studied facets of ambience. For example, focusing onsounds of music as an atmospheric facet, Milliman (1986) finds that the employment ofdifferent tempos of background music are linked to traffic flow and gross receipts inrestaurants. Smith and Curnow (1966) contend that shoppers spend less time in a storewhen music is played loudly than when it is played softly. Wilson (2003) concludes thatdifferent types of music have different effects on the perceived atmosphere and theamount patrons are prepared to spend. Consequently, different levels of sound waves(e.g. music) are closely linked to customers’ experiences and behaviors.

Lighting is another important atmospheric factor. Intensity, color, type, andplacement of lighting, among other qualities, are important for developing a desirableatmosphere. Proper lighting can add texture, charm, and beauty to a building or alandscape. Effective lighting attracts attention and creates an impression of theatmosphere inside. Previous research reveals that bright light will promote anatmosphere of liveliness and sociability, while dim light increases the sense ofrelaxation (e.g. Heide and Grønhaug, 2006). Mehrabian and Russell (1974) cite studiesthat demonstrate people’s tendency to be drawn to light sources. Another studyconcludes that people find the contrast of a bright area with that of a darker one,sometimes referred to as glare, to be unpleasant (as referenced in Mehrabian andRussell, 1974). Furthermore, previous studies show that soft incandescent lighting isusually associated with a higher quality environment (e.g. Sharma and Stafford, 2000).The right atmosphere relaxes guests and creates an atmosphere in the service settingthat contributes to a positive experience. The intensity and style of light are, therefore,closely linked to customers’ experiences.

Scent is a relatively unexplored atmospheric facet. Morrin and Ratneshwar (2000,p. 67) describe it as part of ambience: “Scent that is not emanating from a particular

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object but is present in the environment”. Previous research concentrates to a largeextent on scent in relation to consumer reactions to scented promotional items and toproducts like those found in household cleaners and shampoos (e.g. Milotic, 2003).Some researchers focus on scent in an environmental setting. For example, Mattila andWirtz (2001) contend, based on an experiential study, that scent is linked to customers’evaluations of a store’s environment and suggest that the manipulation of ambiencestimuli can augment customers’ satisfaction. Hirsch (1995) conducts a study in a LasVegas-casino and conclude that the presence of a pleasant scent is linked to increasedgambling activity and increased slot revenue. Baron (1981) find that an agreeableambient scent has a positive effect on customers’ behavior. From a practical point ofview, scent is a well-known marketing tool. Heide and Grønhaug (2006) note that scentis probably the most widely used for gastronomic products. Walt Disney World inOrlando uses the smell of chocolate-chip cookies baking that is piped from theunderground to the park’s Main Street inside the front gate to greet guests, creatingwarm feelings and whetting their appetite for a treat. Although there are some studiesfocusing on scent as an atmospheric factor, researchers call for further research onscent as an important element of ambience (e.g. Bitner, 1992; Spangenburg et al., 1996).

Because the three facets of ambience of sound, light, and scent separately are provento be positively related to joy, they are likely to have a positive effect on joy whenintegrated in the construct of ambience. Previous studies of the three facets indicatethat they are all linked to customers’ experiences. It is reasonable to assume that theuse of ambience facets in a winter park is linked to customers’ feelings of joy. Based onthe presented theoretical framework focusing on the collective effect of ambience in awinter park on customers’ feelings of joy, the present study poses its first hypothesis:

H1. Customers’ perception of ambience in a winter park is positively related totheir feelings of joy.

Interaction and customers’ feeling of joyAccording to Bitner (1992), multiple social factors (i.e. interaction) influence guests’perceptions of atmosphere. Bitner (1992) distinguishes between self-service (customersonly), interpersonal service (both customers and employees), and remote service(employees only). The present study is limited to the interaction between customersand service providers. This type of interaction is defined as a period during a visit inwhich a customer interacts with the service provider. It is important to note that term a“period” in this definition can vary along a continuum from time spent on shortdiscrete transactions (e.g. buying a ticket at the entrance of the park) to time spent on amore relationship-building approach (e.g. talking with the service providers during thevisit). The following paragraphs describe the interaction between customers andservice providers and its relationship to customers’ feelings of joy.

Czepiel and Gilmore (1987) conclude that human interactions are more engagingthan impersonal ones. Consequently, companies must strive to deliver services thatmeet or, even better, exceed customers’ service expectations (Zeithaml et al., 1993). Forexample, some service providers, such as Disney, spend many months trainingemployees in different methods of how to interact with customers during their stay intheir parks (Rubis, 1998). Bitner (1990) writes that both the ability of employees torespond appropriately to customers’ needs, or possible service-delivery failures, andthe presence of unprompted employee actions strongly relate to customers’ perceptions

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of employees. Furthermore, the customer-contact approach of Chase (1981) implicatethat higher degrees of contact with customers increased sales opportunities. There arealso other studies demonstrating the importance of focusing on the interaction betweenthe service providers and the customers (e.g. Wirtz et al., 2008; Wong, 2004;Parasuraman et al., 1985).

Oliver (1993, p. 76) defines satisfaction from a customer point of view by suggestingthat: “. . . satisfaction is all salient dimensions, requires experience dependency andinvolves emotions”. Although emotions in this definition are a part of the outcome ofcustomers’ experiences with the service provider, there is still a lack of empiricalinvestigations of how the interactions are linked to customers’ feelings. There are anumber of studies focusing on the role of emotions. For example, Wong (2004) arguesthat emotions play a critical role in the customer-contact employee interaction. Arnouldand Price’s (1993) research on consumer-guide interactions in river-rafting find thatcustomers’ experiences were linked to a range of (both negative and positive) emotions.Although the main focus in their study was on how customers experienced the tripwhile actually on the river in itself, it indirectly showed that emotions should beconsidered when studying interaction between the service provider and the customers’experiences.

One may reasonably assume that employees should emphasize creating a pleasantand entertaining experience during an interaction that will elicit positive customeremotions, such as feelings of joy. This practice is especially important in the case ofhedonic services, such as winter parks, which are used as the service setting for thepresent study. Winter park services can be characterized as pleasure-drivenenterprises, and an important goal for the customers is to have a great time and ajoyful experience (e.g. Bigne et al., 2005). It is important, therefore, that a serviceprovider of hedonic services has as a primary goal to induce the customers with afeeling of joy when interacting with its customers. It is also reasonable to assume thatservice employees who are particularly helpful, and who show empathy, as well asbeing very friendly, may induce greater levels of stimulation and pleasure. Researchshows that a simple smile from an employee can in itself produce a higher level ofcustomer satisfaction (e.g. Søderlund and Rosengren, 2008). Previous research linksservice providers’ smiling faces and happy voices to the inducement of joy in anobserver (e.g. Adelmann and Zajonc, 1989; Lundqvist and Dimberg, 1995). Thus, thepresent study assumes that customers’ general perceptions of their interaction with theservice providers in a winter park is linked to customers’ feelings of joy. Based on theprevious theoretical framework, the present study poses its second hypothesis:

H2. Customers’ perception of the interaction with the service providers in a winterpark is positively related to their feelings of joy.

Design and customers’ feeling of joyIn a nutshell, one could describe design in terms of relationship to the physicalsurroundings (Bitner, 1992). Similar to ambience, we can perceive design through oursenses. As such, they both belong to the same construct within experiential marketing(Schmitt, 1999). Design, however, is different from ambience in that the former focuseson tangible aspects while the latter focuses on intangible aspects of customers’experiences. Consequently, the construct of design in the present study refers to the

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physical context of the atmosphere that customers experience during a visit to a winterpark.

Kotler (1973, p. 50) emphasizes the importance of physical design, definingatmosphere as: “. . . the conscious design of space to create certain effect in buyers”.Accordingly, one can label design as an attention-creating medium. It is well knownthat physical design is able to attract customers’ attention. In a Hard Rock Cafe,customers are surrounded by authentic rock-and-roll memorabilia, such as a guitarsigned by John Lennon or leather jacket worn by Elvis Presley. Disney parks aroundthe world are likewise well known for their fantastic designs of the buildings in theirparks. In both examples, physical design is used to influence customers’ experiences. Asurvey of the literature shows that customers’ experiences of physical design havebeen linked to important outcomes. It seems, however, that there are mixed findings onwhether design matters or not. Some studies indicate support for the importance ofdesign. Mehrabian and Russell (1974) conclude that design can encourage people toremain in the environment or to leave it. Bitner (1990) discovers in a study of servicefailures with travel agencies that the appearance of the physical surroundings ispositively related to service-encounter evaluations and customer-loyalty behavior. Incomparing two service settings (casino versus sport venues), Wakefield and Blodgett(1994) write that customers’ experiences of the aesthetics of the facilities in these twosettings were linked both to the intention to repatronize and the desire to stay. On theother hand, there are studies that show design to have a minor or no role at all inaffecting customers’ experience. Parasuraman et al. (1991) report that design has noeffect on consumers’ perceptions. Cronin and Taylor (1992) also ascertain that designhas only a limited influence on customers’ perceptions of services such as fast foodrestaurants. It seems, then, that there is still insufficient knowledge on whether or notdesign is significant to customers’ experience.

Nevertheless, previous research points out that physical design is able to evokepeople’s feelings. Bitner (1992) claims that any environment, whether natural ormanmade, can be located in a two-dimensional space that reflects people’s emotionalresponse to the environment. Wasserman et al. (2000) contend that different restaurantlayouts and interior design influenced customers’ emotions. Furthermore, Mehrabianand Russell (1974) determine that certain environments are able to elicit customers’feelings of pleasure. Pine and Gilmore (1998) argue that an effective physical design isconcise, compelling, and engaging to all the senses. One can assert, then, that design isespecially important for customers’ experiences of hedonic services, such as a winterpark, because customers visiting such a park are pleasure-driven. An important goalfor the customers is to have a great time and a joyful experience (e.g. Bigne et al., 2005).Consequently, it is likely that properly designed physical environment may evokecustomers’ feeling of joy. Based on the previous theoretical framework, the presentstudy poses its third hypothesis:

H3. Customers’ perception of design in a winter park is positively related to theirfeelings of joy.

Customers’ feeling of joy and customer loyaltyIt is recognized that customers’ emotions and behavior are linked. This view is basedon the belief that emotions serve as primary motivators of behavior (e.g. Izard, 1977).Previous research indicates that there is a relationship between emotions and loyalty.

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Westbrook (1987) focuses on emotions generated from customers’ experiences andfinds that emotions are related directly to post-purchase behavior, such as re-purchaseplanning. Allen et al. (1992) show that effective experiences (which they called “emotiveexperiences”) could be valuable for predicting purchasing behavior. Stauss andNeuhaus (1997) report a significant relationship between emotions and loyalty. Thereare other examples of studies indicating a connection between emotions and behavior(e.g. Bagozzi et al., 1999; Liljander and Strandvik, 1997; Yi-Ting and Dean, 2001). Itseems that most studies use repeat-purchase intention as an index of service loyalty.Recent studies employ customer preferences, word-of-mouth, and praise as means ofmeasuring loyalty (Zeithaml et al., 1996). In line with this reasoning, this study definesloyalty as a person’s willingness to recommend a winter park, or any other attraction,to other people.

The effect of customers’ feelings of joy is not linked to loyalty in previous research.It is reasonable to assume that customers’ feelings of joy and loyalty are positivelyrelated. This assumption is due to human nature in that one responds to an event incertain ways in order to maintain a positive emotion (and to avoid a negative emotion).Specifically, a person’s feeling of joy tends to link to his or her decisions to stay orcontinue with what he or she is doing. It is also reasonable to assume that customers’positive experiences in a winter park cause feelings of joy that in turn motivatescustomers to share this positive experience with others (e.g. family and friends).Consequently, there are reasons to assume that there is a positive connection betweencustomers’ feelings of joy, and loyalty. Based on the previous theoretical framework,the present study poses its fourth hypothesis:

H4. Customers’ feeling of joy is positively related to their loyalty.

MethodologyResearch contextA winter park was selected as the research context to test the conceptual modeloutlined in Figure 1. There are three main reasons why this choice was appropriate:

(1) The park was appropriate because it made it possible to study explicitly howcustomers perceive different atmospheric experiences during their visit.

(2) The winter park was chosen given its hedonic nature and its ability to generatecustomer emotions. Previous research has emphasized that hedonic attractionsare appropriate when the aim is to study customers’ emotional reactions (Ottoand Ritchie, 1996; Vittersø et al., 2000).

(3) The winter park offered an opportunity to address the need for further researchon the effects of atmosphere on consumers’ emotions when experiencing touristattractions (McGoldrick and Pieros, 1998).

The winter park is located in the eastern part of Norway. Inside the park, there arevarious attractions – such as shows, restaurants, and shops – for both children andadults. Some examples of what the winter park offers to its customers are:

. snow rafting;

. quad bikes (ATVs);

. horse sledges;

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. gladiator matches (with two contestants trying to push each other off woodenbeams on which they sit);

. a high-rope course (where one can participate in activities such as climbing andrappelling);

. ice-bowling; and

. miniature snowmobiles.

In the middle of the park, there is an elegantly lighted ice hotel where visitors canspend the night. Inside the hotel, there is also an ice cathedral and an ice restaurant. Inaddition, the hotel is located near a huge fairytale palace where visitors can seecharacters from the Norwegian folktales. There are lights of different colors, bonfiresburning birch-wood, flambeaux, and various smells (e.g. the smell of freshly bakedNorwegian waffles and other food) from the outdoor cafes found at various locationsaround the park. Every night the park celebrates with magnificent fireworks, and afantastic son-et-lumiere creation of lighting accompanied by majestic music.

Based on the descriptions of different attractions and activities in the selectedwinter park, one can presume that it contains a suitable context of hedonic services forthe study of customers’ atmospheric experiences and of how such experiences relate tocustomers’ feelings of joy.

Research instrumentA structured questionnaire was used based on items derived from previous research.The survey questionnaire was pre-tested with 10 individuals for content validity beforethe interviews in present study were carried out. In addition, one expert evaluated thecontent of the questionnaire. In consequence, some items were reworded to improveboth validity and clarity based on the comments received from the participatingindividuals and the expert in the pre-testing procedure of the structured questionnaire.

Data and sampleThe survey was conducted during the opening season of the winter park, which is fromJanuary to March (i.e. coldest period of winter in the Northern hemisphere). All datawas collected at the end of the opening hours to ensure that respondents had been inthe park for a sufficient amount of time and thus had sufficient experience of their visitto the winter park to participate as key informants in the survey. Each respondent wasgiven a brief introduction of the aim of the study and informed that their responseswould be kept anonymous.

In total, data were collected from 162 customers through personal interviews usingthe structured questionnaire. The sample characteristics were as follows:

. 55 per cent were male;

. mean age was 36;

. 10 per cent had visited the park on other occasions;

. approximately 40 per cent reported that their home base was in the eastern partof Norway;

. the average number of travelling companions ranged from two to five people;and

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. approximately only 3 per cent visited the winter park by themselves, whichclearly indicated that people preferred to visit this winter park in companionwith others (e.g. family and friends).

Measures and scale itemsThe sources for each construct and their items used in the questionnaire included in theCEO-model are as follows:

Cause(s). Ambience – items were borrowed and modified from Schmitt (1999).. Interaction – items were borrowed and modified from Hightower et al. (2002).. Design – items were borrowed and modified from Mossberg (2007).

Effect. Joy – items were borrowed and modified from Richins (1997) and Sweeney and

Soutar (2001).

Outcome. Loyalty – items were borrowed and modified from Zeithaml et al. (1996).

Subjects responded to seven-point Likert-scales for all variables. These measures wereanchored at (7) strongly agree and (1) strongly disagree (see the following).

Scale itemsAmbience

. The sound in the winter park has contributed to my experience.

. The lighting in the winter park has contributed to my experience.

. The smell in the winter park has contributed to my experience.

Interaction. I would describe the staff in the winter park as friendly.. I would describe the staff in the winter park as helpful.. I would describe the staff in the winter park as available.. I would describe the staff in the winter park as knowledgeable.

Design. Viewing the ice sculptures in the winter park has contributed to my experience.. Viewing the architecture in the winter park has contributed to my experience.

Joy. I felt joyful during my visit in the winter park.. I felt excitement during my visit in the winter park.

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Loyalty. I will tell positive things about the winter park.. I will recommend this winter park to other people.

Data analysis and resultsThe measurement and structural models of the CEO-model shown in Figure 1 wastested using AMOS 16.0. All analyses used maximum likelihood estimation. Resultsare reported in the form of standardized solutions.

Measurement modelThe goodness-of-fit estimates for the measurement model, were fairly satisfactorywithin the recommended guidelines. For example, the Chi-square was 64.800 with 55degrees of freedom. This chi-square was not statistically significant (p ¼ 0:172), butadditional fit statistics, as recommended by Diamantopoulos and Siguaw (2005), werealso examined. The normed Chi-square (x 2/df) was 1.178, while: the NFI was 0.936; theIFI was 0.990; the TLI was 0.983; the CFI was 0.989; and RMSEA was 0.033 (confidenceinterval 90 per cent: 0.000-0.062), all of which were all well within recommendedguidelines. In conclusion, the goodness-of-fit estimates were satisfactory.

Several measures were used to assess the validity and reliability of themeasurement model (see Table I). Convergent validity is the extent to which theindividual items in a construct share variance between them, and is measured based onthe variance extracted from each construct. The variance extracted for all constructswas close to or exceeded the recommended 50 per cent. Reliability was also consideredwhen evaluating constructs. All constructs exhibited levels of composite traitreliability that were close to or exceeded 0.7. Discriminant validity examines whetherthe constructs are measuring different concepts, and is assessed by comparing thevariance extracted to the squared inter-construct correlations. The variance extractedshould be larger than the corresponding squared inter-construct correlations, and thiscondition was met in all cases, apart from one in which the squared correlation betweenambience and design was somewhat higher than the average variances extracted (seeTable I). However, since the literature (e.g. Bonn et al., 2007) conceptualizes and treatsambience and design as two separate constructs, it was decided to keep them separatein the structural model.

Nomological validity means that the direction of the causal relationships betweenthe constructs is consistent with theory (see Figure 2). The construct relationships weresignificant and consistent with theory, thus confirming nomological validity. In sum,the recommended guidelines for convergent, discriminant and nomological validity, as

Construct 1 2 3 4 5

Interaction 1,000Ambience 0.10 1,000Design 0.08 0.64 1,000Joy 0.07 0.21 0.29 1,000Loyalty 0.16 0.23 0.21 0.38 1,000Variance explained (%) 69 49 45 61 91Composite trait reliability 0.91 0.78 0.63 0.70 0.94

Table I.Squared inter-construct

correlations andsummary statistics

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well as construct reliability, were all nearly met. It is therefore concluded that themeasurement properties of the CEO-model applied to customer atmosphericexperiences indicate acceptable validity and reliability.

Structural modelSince the conceptualisation of the constructs was satisfactorily supported in themeasurement model, it was decided to proceed testing the structural model (seeFigure 1). The results of the model estimates are presented in Figure 2. The resultsshow that the fit of the structural model was satisfactory. Chi-square was 75.111 with58 degrees of freedom. This Chi-square was statistically significant at 0.065. Thenormed chi-square (x 2/df) was 1.295 while: the NFI was 0.926; the IFI was 0.982; theTLI was 0.971; the CFI was 0.982; and RMSEA was 0.043 (confidence interval 90 percent: 0.000-0.068), all of which again were well within recommended guidelines.Furthermore, three out of four hypothesized relationships were supported (see Table II).

As expected, the customers’ perceptions of the interactions with the serviceproviders in the winter park were found to be positively related to the customers’feelings of joy (b ¼ 0:18; p ¼ 0:025), thereby supporting H2. Further, the customers’perceptions of the designs in the winter park were also discovered to be positivelyrelated to the customers’ feelings of joy (b ¼ 0:40; p ¼ 0:084), thereby supporting H3.H1 was not supported in that the relationship between the customers’ perceptions ofthe ambience in the winter park and the customers’ feelings of joy were not statisticallysignificant (b ¼ 0:15; p ¼ 0:29). Finally, it was found that the customers’ feelings of

Figure 2.Structural model withstandardized estimatesexhibited

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joy were positively associated with customer loyalty (b ¼ 0:68; p ¼ 0:001), therebysupporting H4.

Theoretical implications and conclusionsThis present study makes a contribution to the service literature that calls for researchon the relationship between the atmosphere of the service setting and its linkage tocustomers’ emotional responses in experiencing tourism attractions (e.g. Bigne et al.,2005; McGoldrick and Pieros, 1998). It has focused on customers’ perceptions ofambience, interaction, and design in the service setting in focus, and the relationshipbetween each of these three atmospheric facets, customers’ feelings of joy and customerloyalty.

Lazarus (1991) states that emotions are affected by the appreciation of theenvironment. Overall, this study supports this view. Two out of three atmosphericconstructs used (i.e. interaction and design) were found to be linked to customers’emotional reactions. The overall findings support previous research that stresses theimportance for service organizations to concentrate on how customers experienceatmospheric constructs (e.g. Heide and Grønhaug, 2006; McGoldrick and Pieros, 1998;Pine and Gilmore, 1998; Schmitt, 1999). The findings are also supported by Bagozzi’s(1992) general theoretical framework, all of which consist of three elements:

(1) Cognitive processes (in this study referred to as customers’ perceptions of thethree atmospheric constructs).

(2) Emotional responses (in this study referred to as customers’ feelings of joy).

(3) Behavior (in this study behavior refers to customer loyalty).

Consequently, it can reasonably concluded, based on the main findings in the presentedstudy, that customers’ feelings of joy are a result of their cognitive evaluation ofatmospheric facets and that their feelings of joy are an important factor for customerloyalty.

The findings reveal that design was the most important construct linked to theoutcome of customers’ experiences. The construct of design referred to the physical (ortangible) and observable elements that customers experienced during a visit. Thefindings reveal that design directly affects customers’ feeling of joy. Furthermore, thefindings reveal that design indirectly affected customer loyalty. Consequently, designis a crucial construct in relation to both customers’ feelings of joy and customer loyalty.According to Bitner (1992), design is apt to influence customers’ attitudes towardsservice providers in all service settings.

HypothesisExogenousconstruct

Endogenousconstruct

Regressionweight Significancea Finding

H1 Ambience Joy 0.152 0.286 Not supportedH2 Interaction Joy 0.184 0.025 SupportedH3 Design Joy 0.400 0.083 SupportedH4 Joy Loyalty 0.682 0.000 Supported

Note: aOwing to the directional hypotheses, we choose to report one-tailed p-valuesTable II.

Hypotheses and testing

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Not surprisingly, the construct of interaction turned out to be linked to customers’feelings of joy, which supports Czepiel and Gilmore’s (1987) assertion that humaninteractions are more engaging than impersonal ones. Furthermore, interaction (in thiscase between customers and those employees the customers come in direct contactwith) can be seen as a meaningful and creative process whereby the outcome of suchinteractions is positive when the interaction is appreciated. The findings from thepresented study are also supported by congruity theory (Osgood and Tannenbaum,1955), which indicates that individuals seek to hold harmonious attitudinal structures,specifically in relation to service providers. This means that customers who holdpositive beliefs about the service providers (e.g. service providers’ friendliness) willalso infer a similar positive feeling to other related aspects of the encounter. As a result,the link between customer-contact employees and customers’ feelings of joy supportsthe view that emotions can be seen as a guide to customers in appreciating interactivesituations and responding to them (Mangham, 1998).

There appears to be no previous study that has tested the effect of ambience as anatmospheric facet on customers’ feelings of joy. The findings reveal that the linkbetween these two constructs is positive, but it was not statistically significant. Onecould interpret this result as showing that ambience does not matter for customers’feelings of joy. However, from studies of other service settings such as retailing (e.g.Sherman et al., 1997), it is well known that ambience is linked to customers’ emotions. Itis therefore assumed that this should also be the case in a hedonic setting such a winterpark. It is suggested that there may be one main reason why this study did not find asignificant relationship between ambience and customers’ feelings of joy: all facets ofambience (sound, light, and scent) were measured using only one item for each factor.The use of only one item may have led to the missing of some aspects of informationabout the construct of ambience and may have resulted in the non-significantrelationship. It is therefore suggested that future research should emphasize the use ofseveral items of each facet of the construct of ambience, as they may contribute toconclusive findings on whether there is a relationship between the ambience and thecustomers’ feelings of joy.

Customers’ feelings of joy were strongly linked to customer loyalty. One reason forthe role of customers’ feelings of joy could be that they are goal-directed in nature, asthey are those emotions that a person consciously seeks to experience (Liljander andBergenwall, 2002). It is reasonable to assume that one important goal in visiting awinter park is to have an experience that evokes ones’ feelings of joy. Consequently, thecustomers’ feelings of joy play an important role for hedonic services, since experientialemotions of joy may constitute the main outcome of such services.

Managerial implications and conclusionsYelkur (2000) argues that creating memorable experiences is critical to retainingcurrent customers and attracting new ones. The findings of the present study holdimplications for mangers of hedonic services. It is also reasonable to assume that thefindings may be generalized or adapted to other service settings or service sectors. Forexample, the findings may be generalized to the hospitality sector, where an importantgoal for the service provider it that the customer is having a joyful experience.Furthermore, it is reasonable to assume that customer’s perceptions of design in thehospitality sector (e.g. in the design of a hotel) and interaction (e.g. interaction with

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frontline or other personnel at the hotel) are both linked to customers’ feelings (e.g. joy).Subsequently, there is reason to assume that the findings can be applicable or adaptedto other service settings or service sectors.

One important managerial implication derived from the present study is theimportance of taking customers’ emotions into consideration when measuring theirexperiences. The study found a strong relationship between customers’ feelings of joyand customer loyalty. It seems that customers’ feelings of joy act as a source ofinformation that they may use in the formation of their attitudes. It is noteworthy thatBarsky and Nash (2002) find (using the hotel setting) that different emotions are linkedto customers’ decision-making processes with regard to loyalty. Consequently, it can beuseful for managers to measure customers’ feelings of joy, since it can help to predictwhether customers are willing to recommend the service offered to other people.

Today’s firms are competing with experiences (e.g. Berry et al., 2002). Organizationsmust strive to orchestrate or to stimulate positive emotional reactions to be successful(e.g. Haeckel et al., 2003). The present study has indicated the need for managers tofocus on design. Managers employing design in an effective manner may make theircustomers feel comfortable, which may result in customers’ loyal behavior. One way to“design for customers’ emotions” is to use customers actively in the process ofdesigning the service. For example, using “customer focus groups” may contribute tothe service-development process which may lead to bridging the gap betweencustomers’ expectations and their experiences. A service-development approach,whereby customers take an active part in the process of service design, may help toensure that managers develop customer services that are more successful.

The findings from the present study also indicate the importance of customers’interaction in atmospheric experiences of hedonic services. Specifically, the presentstudy reveals that managers must regard their employees as critical assets, owing tothe interactive nature of service delivery. Previous research indicates that it isimportant that managers train, reward, and empower their employees in anappropriate manner. For example, Singh (2000) concludes that the support frommanagers is linked to employees’ performances. There is a need for managers tocontinuously identify critical areas linked to employees’ interactions with customers.Managers who are able to satisfy what employees need in order to be able to do theirjobs properly may have customers who are more emotionally satisfied.

In summary, customers’ experiences resulting in positive emotional reactions areincreasingly being seen as a real and sustainable differentiators between competingfirms (e.g. Pine and Gilmore, 1998; Prahalad and Ramaswamy, 2000; Schmitt, 1999).This present study indicates that two out of three atmospheric facets can be suchdifferentiators that they contribute to customers’ feelings of joy.

Research limitations and future researchAlthough the present study expands current knowledge about how atmosphericexperiences emotionally touch customers, there are several limitations, which need tobe addressed. In total, five limitations are highlighted along with suggestions for futureresearch:

(1) A winter park was chosen as the service setting for the present study. Although,this setting is appropriate for the study of customers’ atmospheric experiencesand the linkage to their feeling of joy, additional research using other types of

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hedonic services is necessary to verify the validity, reliability, and the extent towhich the presented findings can be generalized. One suggestion for futureresearch is to study customers’ atmospheric experiences and their linkage to thefeeling of joy using a festival as a setting as the environmental cues of festivalsare multifaceted (e.g. Lee et al., 2008). Consequently, using other service settingswould not only be interesting, but also necessary to verify the validity andreliability of findings from this present study.

(2) There is a growing recognition in business of the importance of designing andoffering customer experiences in such way that they enhance customers’perceived values (e.g. Schmitt, 1999). Woodruff (1997) stresses the importance ofcustomer values and emphasizes them as an important source of competitiveadvantage. However, Duman and Mattila (2005, p. 311) state that valueperceptions have received scant attention compared to quality and satisfaction.Subsequently, a worthwhile suggestion for future research would be to explorethe relationship between different atmospheric experiences and their links tocustomers’ overall perceptions of value.

(3) Future research may take a deeper look into other facets of the construct ofatmosphere. For example, the scope of the present study was limited to onefacet of interaction, namely the interaction between service providers and theircustomers. Although this type of interaction reflects well the interactive facet ofatmosphere, there are other types of interaction that future research mayconsider. For example, another facet may be the interaction between customers.Customers receive a service simultaneously in many service contexts, whileother customers are being served (Grove and Fisk, 1997). The service offered inrestaurants, theaters and theme parks is usually delivered to customers who aresharing the same service setting. Customers sharing the same service contexthave been termed as:. “fellow customers” (Grove and Fisk, 1997);. “customer B” (Langeard et al. 1981);. “service audience” (Grove and Fisk, 1983);. “service participants” (Booms and Bitner, 1981);. “social factor” (Baker, 1987); and. “social surroundings” (Belk, 1975).

The common denominator of all these terms is the recognition that customersmay affect one another by being part of the same service context. It is thereforesuggested that an important area for future research may be to focus on thecustomers’ general perceptions of their interactions with other customers inhedonic services (e.g. winter parks) and to explore how such interactions arelinked to customers’ feelings of joy.

(4) The present study focused on atmospheric experiences as a factor forcustomers’ feelings of joy. In extension, there are other types of experiences notrelated to the construct of atmosphere. For example, a factor involved incustomers’ feelings of joy could be ‘customer engagement’. Research has linkedcustomer engagement to customers’ experience. Higgins (2006, p. 451) writes

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that: “ . . . when people experience strong engagement with something, they areinvolved, occupied, interested and attentive to it; they are absorbed orengrossed in it”. Pine and Gilmore (1999) stress the importance of engagementin customers’ experiences. Pine and Gilmore (1998, p. 12) state that customers’experiences touch on: “. . . events that engage individuals in a personal way”. Itseems that research has so far not understood or captured fully what is meantby customer engagement. Future research may be undertaken to enhance theunderstanding of this important, but seemingly elusive, construct. There areseveral important questions linked to customer engagement that futureresearch may answer:. What is actually meant by the construct of engagement in customers’

experiences?. Does customer engagement comprise one or more facets?. If customer engagement consists of several dimensions, how do these

dimensions relate to each other? and. How and in what way is customer engagement linked to customers’ feelings?

Addressing these posed questions may make a worthy contribution to thetheoretical understanding of the nature of customers’ experiences, while at thesame time demonstrating important practical implications of how organizationsdesign their services in order to touch customers emotionally.

(5) Finally, there is a possible “halo effect” (or bias) that may have occurred as aresult of the operationalization. Since the construct of loyalty wasoperationalized is expressed in terms of two items that are behavioralintention-oriented (i.e. will), the responses to both of these items may have beenbiased by the favorable responses to the proceeding item of the joy-construct.Thus, it is suggested that future research may include additional items – suchas repeat or previous visits – in their operationalization of the loyalty-construct.

In sum, the authors contend that the empirical findings make a contribution to the fieldof research in focus, and offer a series of opportunities for future research.

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About the authorsTerje Slatten is Assistant Professor in the Department of Tourism at Lillehammer UniversityCollege, Norway. His research interests include service quality, service management, complainthandling and loyalty. He is currently doing research on the role of emotions in serviceorganizations both from an employee and a customer perspective. His work has been publishedin several journals such as Marketing Intelligence & Planning, International Journal of ServiceIndustry Management, Managing Service Quality, Australasian Marketing Journal and EuropeanBusiness Review. Terje Slatten is the corresponding author and can be contacted at:Terje.Slatten@hil.no

Mehmet Mehmetoglu is a Professor of Tourism in the Department of Tourism at LillehammerUniversity College, Norway. He specializes in consumer behaviour, and research methods in thefields of tourism and hospitality.

Goran Svensson is Professor at Oslo School of Management, Norway. He is also Professor atHalmstad University, Sweden and Honorary Professor at Deakin University, Australia. He isregular Guest Professor at National Chung Hsing University in Tai Chung, Taiwan. He holds aPhD at the School of Economics and Commercial Law, Goteborg University, Sweden.Furthermore, he is a committed member of the international research community as journaleditor, numerous editorial boards and scholarly/research networks and associations. He is afrequent author of international journal articles, international conference contributions andengaged as a book author. His research agenda consists of various research subjects and he haspublished in areas such as: business ethics, leadership, logistics, marketing, sustainability,public sector management, quality management, academic journals and publishing.

Sander Sværi works as assistant professor and head of department at Oslo School ofManagement. He has a PhD in Service Marketing at Karlstad University, and has his main fieldof research within service, consumer behavior and tourism.

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