Impact of In-Store Atmosphere on Consumer Perception at Modern Trade in Sri Lanka: Examine Store Format as Moderating Variable

Abstract

With the implementation of open economic policies in 1978, Sri Lanka's retail sector has undergone a significant transformation from traditional to modern retailing. However, marketing strategies within the modern trade sector still face issues with effectiveness. The primary objective of this research was to examine the extent to which in-store atmospheric elements impact consumer perception in modern trade in Sri Lanka, while also investigating the moderating effect of store format. A sample of 384 respondents from the Western Province was obtained through a survey method. Data was collected using a structured questionnaire in this quantitative study. The analysis was performed using the Statistical Package for Social Sciences (SPSS), version 21. The results revealed that ambient, promotional, and social factors significantly impact consumer perception, while the design factor does not. Furthermore, the analysis concluded that store format does not significantly moderate the relationship between in-store atmosphere and consumer perception in modern trade. Final interpretations and recommendations were developed based on these key findings.