Emily Ducker Dissertation

The Psychological Impact of Covid-19 on the Luxury Car Showroom Experience Exploring how the Built Environment Influences Consumer Behaviour

STUDENT NAME:

EMILY DUCKER

STUDENT NUMBER: 180370805 DISSERTATION TUTOR:

DR. NEVEEN HAMZA

DISSERTATION WORD COUNT:

9459

(of which footnotes): 1866 COVID RESEARCH ADAPTATION:

NOT INCLUDED

The Psychological Impact of Covid-19 on the Luxury Car Showroom Experience Exploring how the Built Environment Influences Consumer Behaviour Emily Ducker - Dissertation in Architectural Studies

2

ARC3060 Dissertation in Architecture Studies de7: Invisible Energies, Neveen Hamza

Student no. 180370805 A dissertation written in part fulfilment of the BA (Hons) Architecture Degree 2020.

Copyright @ Ducker, Emily. All rights reserved.

3

Acknowledgements I wish to offer my immeasurable gratitude to those who have supported me throughout my dissertation journey.

To my supervisor, Dr Neveen Hamza, for her exceptional guidance, knowledge and supervision.

I would like to express my special thanks of gratitude to Rebecca Crewe at Mercedes-Benz of Newcastle, for permitting me to use the dealership as a case study, sharing resources and knowledge crucial for the success of this study.

To my colleagues for their offering their insight and effort in completing the questionnaire.

To my loving mother for her support and advice, as always.

4

The Psychological Impact of Covid-19 on the Luxury Car Showroom Experience Exploring how the Built Environment Influences Consumer Behaviour Keywords: Covid-19, showroom, environmental psychology, design, consumer behaviour

5

Figure 1: Image from the Case Study showing Covid-19 changes and atmospheric conditions.

6

Abstract Measures have been brought in by the government to minimise the spread of Covid-19 in the automotive industry (fig.2) , whilst trying to maintain some ‘normal’ functionality. Such measures can change ambient, design and social elements of the car showroom ‘atmosphere’ which research has shown can further impact customer behaviour. This study aims to hypothesise how consumer behaviour has changed during the pandemic, due to the measures brought in to protect users.

Building on environmental psychology and retail atmospheric literature, this study analyses the Mercedes-Benz of Newcastle dealership, using a rich plethora of sources. Exploratory interview, questionnaires, case study and participant observation help to identify which factors are present and have changed in the car showroom as a consequence of the Covid-19 measures.

Analysis of the data showed that customer comfort has been compromised, due to the effects of the Covid-19 sanctions implemented in the dealership. The results indicate this is because of temperature changes, lack of ‘added value’ (closure of the café) and use of space (public realm reduction). The study then applies theory and observations to hypothesise how customer behaviour has been affected.

On this basis, it is recommended the showroom find ways to minimise the sanctions’ effect on customers, such as introducing an automatic door to minimise temperature changes because of the open door. They should look to re-open the café in a Covid-19 safe manner, such as outdoors or takeaway and use floor markers to slow customers journey through the showroom with minimised product and public realm.

Further research is needed specifically from the customer pointof-view to add another perspective to this study. Similarly, a larger study spanning multiple automotive retailers would be beneficial to improve generalisability.

7

Contents Chapter 1: Introduction 1.1 Background Information 12 1.2 Purpose of the Study 13 1.3 Aims and Objectives 14

1.3.1 Aim 14

1.3.2 Objectives 14 1.3.3 Key Questions 14

1.4 Research Methodology 15

1.4.1 Philosophy 15

1.4.2 Data Collection Technique 16 1.4.3 Sourcing the Data 17 1.4.4 Data Analysis Tools 18

Chapter 2: Development of Atmospherics in Retail Environment 2.1 Theoretical Framework 22 2.2 Literature Review 24

2.2.1 Environmental Psychology 24

2.2.2 Retail Atmospherics and Sensory Marketing 26

2.2.3 Context (Car Showroom Design and Covid-19)

30

Chapter 3: Case Study (Mercedes-Benz of Newcastle) 3.1 Changes made to the Case Study during Covid-19

35

3.2 Synthesis - Findings and Analysis 47

3.2.1 Ambient Factors 48

3.2.2 Design Factors 54 3.2.3 Social Factors 58 3.2.4 Covid-19 Changes 60

8

Chapter 4: Discussion 4.1 Key Findings 68 4.2 Discussion 69

4.2.1 Ambience 69

4.2.2 Design 70 4.2.3 Social 73 4.2.4 Covid-19 Changes 74

4.4 Limitations 76 4.5 Recommendations 78

Chapter 5: Conclusions 5.1 Conclusion 84

Chapter 6: References 6.1 References 86 6.2 List of Figures 89 6.3 Apendixes 94

6.3.1 Appendix 1 - Questionnaire 94

6.3.2 Appendix 2 - Interview Transcription 95

9

Figure 2: Government campaign to remind public to wash their hands, wear a face mask and maintain social distancing.

10

Chapter 1: Introduction

11

Chapter 1: Introduction 1.1 Background Information “The human-environment relationship is symbiotic. The environment influences our behaviours and we, in turn, influence the environment”1.

1 Dak Kopec, Environmental Psychology For Design, 3rd edn (London: Fairchild Books, 2018), p. 1.

The way we live and consume is framed, or restricted, by architecture.

Technology advances in 19082 enabled cars to be mass produced, generating

2 Barbara Hahn, Technology In The Industrial Revolution, 2020 <https:// www-cambridge-org.libproxy.ncl. ac.uk/core/books/technology-in-theindustrial-revolution/949B7F585E3005 5E0CF08828C2F50C0B> [Accessed 22 January 2021].

a need for architects to design car showrooms. The fine-tuned balance of ambience, design and social elements creates the atmosphere within a retail environment, thus can influence the consumers’ mental, physical and social behaviour – affecting sales.

Globally, population behaviour has been altered as a result of the Covid-19 pandemic. The effect of the pandemic forced the retail sector, including the car industry, to close on three separate occasions. The constant opening and closing of the lockdown ‘tap’ attempts to balance the economic prosperity and physical health of the UK with the capacity of the NHS. The pandemic has changed the way we use and perceive space, thus altering daily life.

Restrictions to the way customers and employees interact with one another were introduced to help minimise the spread of Covid-19, some of which have repercussions on space.

Increase in sales and a backlog of aftersales customers following the lockdown has increased buyer density within showrooms. Adding to this, social distancing means each individual requires more space. Dealerships must re-think their use of space, encompassing both product and people, with the added caveat of the pandemic’s safety guidelines.

Therefore, the challenge for architects is how these restrictions affect space - more importantly, how they re-design car showrooms to accommodate people, product and provisions, whilst minimising the effects on the customer experience.

This research will investigate the effects of such restrictions on the car showroom environment and the impact on user behaviour.

12

1.2 Purpose of the Study Automotive businesses must safely adapt to maintain viability, especially because the pandemic has plunged the UK into a recession.

Therefore, the architect’s role must adapt to suit altered needs of clients.

At the time of writing, the UK is living through the Covid-19 pandemic, meaning there is little research regarding its effects on the automotive industry. However, the fields of environmental psychology and retail atmospherics offer insight into the elements that can affect the way customers feel in a space, therefore impacting their behaviour. Such theory will be applied to the case study both pre-pandemic and during.

The author is employed at Mercedes-Benz of Newcastle as ‘showroom host’, offering a first-hand, exclusive view-point. Documents not otherwise available and information from colleagues, through questionnaires and interviews, will help accomplish this.

The research will be exploratory in nature and combine theory application, case study, questionnaires and interview. This will provide a rich perspective of the impact Covid-19 has had on the car showroom atmosphere.

There is a possibility businesses have not successfully adapted their space to work during the pandemic, leading to many employees to work from home. This could have ramifications on the architectural industry, as there will be reduced need for commercial building design.

Ultimately, sales are crucial during the unstable economy a pandemic creates, generating revenue and profits to provide a buffer to cover employee wages. Reduced sales could lead to redundancies, triggering a social and economic breakdown in the UK. Finding a pandemic-resilient approach to the car showroom design is, therefore, vital to re-building the UK’s economy post-pandemic and preventing the psychological, social and economic deterioration of society.

13

1.3 Aims and Objectives 1.3.1 Aim The measures put in place for businesses to re-open safely during the pandemic have altered the way businesses operate and use space, which in turn, could affect customer and employee behaviour.

This research aimed to analyse the influence the car showroom atmosphere has on consumer and employee behaviour and how this has been impacted by Covid-19 consequences.

1.3.2 Objectives 1) To identify factors that can influence consumer behaviour within a retail environment.

2) To analyse if such factors are present in the case study car showroom (Mercedes-Benz of Newcastle) pre-pandemic.

3) To explore how Covid-19 sanctions have affected such factors in the case study.

4) To investigate how such changes have affected consumer and employee behaviour.

5) To evaluate which changes have been most impactful on consumer behaviour.

1.3.3 Key Questions 1) What are the main atmospheric features that impact customer and employee behaviour in the case study car showroom?

2) How has consumer and employee behaviour changed following the businesses’ attempts to re-open during the Covid-19 pandemic?

14

1.4 Research Methodology 1.4.1 Philosophy This research adopted a pragmatic philosophy style, meaning it had elements of both a positivist and interpretivist approach to research, with a realist reflection. This was because the nature of the study considered multiple perspectives when assessing the changes made in a showroom and its consequences on the users, such as management, sales employees and customers. Therefore a mix of both qualitative and quantitative data provided a more thorough understanding of the effects Covid-19 has had on the atmosphere of the showroom and its users.

The study was interpretivist in the way it produced in-depth analysis using interviews and ‘participant as observer’ opinions, however was positivist in its use of quantitative, structured questionnaires with sales employees. The realist approach to reflection aimed to help cement the study and apply its findings to the dealership in question and possibly further into the automotive sector, impacting the architectural industry as a consequence.

15

1.4.2 Data Collection Technique

Figure 3: Diagrams showing research methods used.

A mixture of both quantitative and qualitative data was collected, allowing in-depth exploration. The following techniques were used to collect data in this study:

Interview Personal, semi-structured interviews with the Managing Director of Mercedes-Benz of Newcastle • Provide a managerial point-of-view • A form of exploratory research • Select sample • Open-ended questions

Questionnaires A descriptive survey distributed to a limited sample • Select sample - Respondents had to be employed by MercedesBenz as a sales executive • Limited number of respondents • Key information - employee perspective of changes in the showroom following the Covid-19 pandemic

Case Study and Participant Observation Author employed at Mercedes-Benz of Newcastle produced indepth case study and added observations (participant as observer) • Compared showroom atmosphere before and during the pandemic • Photographs • Additional comments • Non-verbal expressions of feelings that could affect behaviour • Alternative employee perspective – helped contextualise and validate questionnaire and interview • Holistic understanding of user behaviour pre-pandemic and during.

16

1.4.3 Sourcing the Data This research consisted of mostly primary source data, such as interviews, questionnaires, participant observation and case study analysis.

Interview • Conducted via video call – open, semi-structured nature benefited from ‘face-to- face’ • Enables researcher to follow emotional cues of interviewee, whilst respecting Covid-19 restrictions • Lasted approximately 1 hour

Questionnaires • Distributed digitally - complied with pandemic guidelines and convenient for respondents • Ten ‘Likert’ style questions (greater than ten could have discouraged respondents) - asked how positively or negatively a given factor affected customer behaviour in the car showroom • ‘Any comments’ section accounted for closed nature of questionnaire • Questions derived from key themes of literature review and author’s observations • Acquiescence bias response minimised as open questions, rather than statements used.

• Findings presented alongside interview and participant observation - allowed validation among trends and data

Case Study and Participant Observation • ‘Participant as observer’ • Fully engaged with participants (sales executives and customers) whilst observing the situation • Longitudinal perspective of the changes over time • Minimised potential bias responses as the author has been employed at the case study (Mercedes-Benz of Newcastle) for four years participants used to presence

17

1.4.4 Data Analysis Tools The interview was recorded and transcribed. The salient points were then extracted and included in the analysis and findings and discussion.

The observer took photographs of the changes to the showroom during the pandemic to support the findings and discussion and added observations where necessary.

Questionnaire responses were entered and analysed using excel. It was decided descriptive statistics were suffice due to the small sample size.

Results were presented using graphs and figures. Interview and case study findings were collated alongside the questionnaire results to provide a wellrounded image of the subject areas.

18

19

Figure 20 4: The ‘Mediterranean Village’ in the Metro Centre showing retail atmospherics used.

Chapter 2: Development of Atmospherics in Retail Environment

21

Chapter 2: Development of Atmospherics in Retail Environment 2.1 Theoretical Framework Environmental psychology encapsulates psychology, architecture, sociology and science, investigating the impact a setting can have on emotions and consequent behaviour. These theories have been selected as they will be useful in analysing the case study’s environment changes and the potential effects on customers.

Pleasure-Arousal-Dominance (PAD) Hypothesis Mehribian and Russell suggested that humans have three main emotional responses. Pleasure refers to positive feelings. Arousal is the feeling of excitement or challenge. Dominance elicits control over a 3 Albert Mehrabian and James Russell, An Approach To Environmental Psychology (The MIT Press, 1974).

situation.3 The theory suggests that emotion is the connector between the environment and the human response in car showrooms.

Affordances Gibson’s research is an ecological approach to perception. It determines that humans take cues from their environment, organising them internally into their own understanding of what they mean, based on their own previous experiences.4 Affordances are the environmental

James J Gibson, The Senses 4 Considered As Perceptual Systems (Westport, Conn.: Greenwood Press, 1983).

cues that prompt the user to consider how an object or space is supposed to be used.

This theory applies to dealerships spaces, e.g. determining public and private realms. This may be useful in assessing how successful the pandemic changes have been communicated to customers in the case study.

Figure 5: Red and green lighting on escalators - Gibson’s Affordances. User has to take the cue that green means okay and red means stop.

22

The Organismic Theory Wapner’s hypothesis accounts for external factors in the humanenvironment relationship. Social, societal and individual experiences combine with the environment and the user’s personality to produce their behavioural response.5 This theory has been selected, to account for the magnitude of

5 Seymour Wapner, “Transactions Of Persons-In-Environments: Some Critical Transitions”, Journal Of Environmental Psychology, 1.3 (1981), 223-239 <https://doi.org/10.1016/s02724944(81)80041-2>.

consequences the pandemic on the wider social, economic and physical context.

Attention Restoration Theory (ART) This theory proposes that spending time in nature helps us to rest, reflect and refocus. A similar effect can be achieved through looking at a picture of a pleasant scene, or simply looking out of a window.6 It hypothesises that nature has the power to re-energise following mental fatigue.

Within the realms of the automotive industry, this could be effective in aiding mental de-stress when making an important, potentially stressful, purchasing decision, such as a car.

6 Rachel Kaplan and Stephen Kaplan, The Experience Of Nature (Cambridge: Cambridge University Press, 1989).

Figure 6: Attention Restoration Theory.

My own image showing nature. How do you feel when you see this image?

23

7 Phillip Kotler, “Atmospherics As A Marketing Tool”, Journal Of Retailing, 49.4 (1973), 48-64 <http:// belzludovic.free.fr/nolwenn/Kotler%20 -%20Atmospherics%20as%20 a%20marketing%20tool%20%20 (cit%C3%A9%20171)%20-%201973.pdf> [Accessed 20 January 2021].

8 Mary Jo Bitner, “Servicescapes: The Impact Of Physical Surroundings On Customers And Employees”, Journal Of Marketing, 56.2 (1992), 57 <https://doi. org/10.2307/1252042>.

9 Robert J. Donovan and John R. Rossiter, “Store Atmosphere: An Environmental Psychology Approach”, Journal Of Retailing, 58.1 (1982), 34-57.

10 Julie Baker and others, “The Influence Of Multiple Store Environment Cues On Perceived Merchandise Value And Patronage Intentions”, Journal Of Marketing, 66.2 (2002), 120-141 <https:// doi.org/10.1509/jmkg.66.2.120.18470>.

11 Mary Jo Bitner, “Servicescapes: The Impact Of Physical Surroundings On Customers And Employees”, Journal Of Marketing, 56.2 (1992), 57 <https://doi. org/10.2307/1252042>.

12 S Dawson, Peter Bloch and Nancy M. Ridgway, “Shopping Motives, Emotional States, And Retail Outcomes”, Journal Of Retailing, 66.4 (1990), 408-427.

13 Robert J. Donovan and John R. Rossiter, “Store Atmosphere: An Environmental Psychology Approach”, Journal Of Retailing, 58.1 (1982), 34-57.7 14 Julie Baker, “The Role Of The Environment In Marketing Services: The Consumer Perspective”, The Services Challenge: Integrating For Competitive Advantage, 1986, 79-84.

2.2 Literature Review 2.2.1 Environmental Psychology Multiple studies have shown that retail spaces can affect customer behaviour 7 8 9 10 and most studies reference the PAD model11 12 13 14- Bitner and Baker’s approach to retail atmospherics is key in assessing showroom atmospherics and their bearing on customer behaviour. Both categorise the factors that can affect customer behaviour in a retail environment into ambient, design (function and aesthetic) and social. This framework is used to assess the case study later in this research.

Bitner coined ‘servicescapes’, describing them as “all of the objective physical factors that can be controlled by the firm to enhance (or constrain) employee and customer actions”. 15 A car showroom is a ‘servicescape’, as it captures where customer, employee, product and environmental cues meet.

Similarly, Kotler defines ‘atmospherics’ as the environment designed to produce emotion that prompts purchase, suggesting they are more influential than the product alone.16 He stated they communicate knowledge about the brand to consumers, such as the level of concern for customers, and add value to the customer experience.17 Donovan and Rossieter concluded the more pleasurable and arousing an environment,

15 Mary Jo Bitner, “Servicescapes: The Impact Of Physical Surroundings On Customers And Employees”, Journal Of Marketing, 56.2 (1992), 57 <https://doi. org/10.2307/1252042>.

the more time and money a customer is willing to spend 18, which could

16 Phillip Kotler, “Atmospherics As A Marketing Tool”, Journal Of Retailing, 49.4 (1973), 48-64.

Shopping motives can be categorised into ‘product-orientated’ and ‘experiential’, then the PAD model can be applied. 19

17

orientated’ have a stronger association with pleasure, whilst ‘experiential’

Ibid.

aid in understanding why it is important to invest in car showroom atmospheres to maximise profits.

20

‘Product-

18 Robert J. Donovan and John R. Rossiter, “Store Atmosphere: An Environmental Psychology Approach”, Journal Of Retailing, 58.1 (1982), 34-57.

have a stronger association with arousal, rating the emotional worth of

S Dawson, Peter Bloch and 19 Nancy M. Ridgway, “Shopping Motives, Emotional States, And Retail Outcomes”, Journal Of Retailing, 66.4 (1990), 408-427.

identity could be distorted, as the way the brand interacts with its

20 Sanford L. Grossbart and others, “Environmental Sensitivity And Shopping Behavior”, Journal Of Business Research, 3.4 (1975), 281-294 <https://doi. org/10.1016/0148-2963(75)90010-7>.

21 R. A. Westbrook and W. C. Black, “A Motivation-Based Shopper Typology.”, Journal Of Retailing, 61.1 (1985), 78-103.

24

the activity.21 Changes to the car showroom could alter its ‘atmosphere’, therefore appeal to different shopper typologies. Potentially, the brand customers has changed, which could shift customer behaviour.

Figure 7: Image showing an example of a ‘servicescape’ and showing ‘atmospherics’. Macaron shop in Paris uses unique lighting and displays to sell products..

25

22 Mary Jo Bitner, “Servicescapes: The Impact Of Physical Surroundings On Customers And Employees”, Journal Of Marketing, 56.2 (1992), 57 <https://doi. org/10.2307/1252042>.

23 Dhruv Grewal, Michael Levy and V. Kumar, “Customer Experience Management In Retailing: An Organizing Framework”, Journal Of Retailing, 85.1 (2009), 1-14 <https://doi.org/10.1016/j. jretai.2009.01.001>.

24 Anne L. Roggeveen, Dhruv Grewal and Elisa B. Schweiger, “The DAST Framework For Retail Atmospherics: The Impact Of In- And Out-Of-Store Retail Journey Touchpoints On The Customer Experience”, Journal Of Retailing, 96.1 (2020), 128-137 <https://doi.org/10.1016/j. jretai.2019.11.002>.

25 Katherine N. Lemon and Peter C. Verhoef, “Understanding Customer Experience Throughout The Customer Journey”, Journal Of Marketing, 80.6 (2016), 69-96 <https://doi.org/10.1509/ jm.15.0420>.

26 Dhruv Grewal, Michael Levy and V. Kumar, “Customer Experience Management In Retailing: An Organizing Framework”, Journal Of Retailing, 85.1 (2009), 1-14 <https://doi.org/10.1016/j. jretai.2009.01.001>.

Peter C. Verhoef and others, 27 “Customer Experience Creation: Determinants, Dynamics And Management Strategies”, Journal Of Retailing, 85.1 (2009), 31-41 <https://doi. org/10.1016/j.jretai.2008.11.001>.

Katherine N. Lemon and Peter 28 C. Verhoef, “Understanding Customer Experience Throughout The Customer Journey”, Journal Of Marketing, 80.6 (2016), 69-96 <https://doi.org/10.1509/ jm.15.0420>.

Figure 8: Starbucks cafe servicescape/ atmosphere - physical part of the ‘customer experience’.

Figure 9: ‘influencer’ collaboration with Starbucks - forms part of the ‘customer experience’ when on social media.

Figure 10: Starbucks tax scandal in the media. Another form of brand connection with customer. Could impact opinion of the brand, therefore behaviour towards the brand.

26

2.2.2 Retail Atmospherics and Sensory Marketing Research suggests the built environment can be utilised to achieve business goals and differentiate itself from competitors.22 Historically, studies tend to reference the shop only, whereas contemporary studies recognise the importance of ‘the customer experience’ of the brand. 23 24 25 Customer experience is described as “every point of contact at which the customer interacts with the business, product, or service”26 - Figures 8-10 show an example. Ambient, design and social factors form this, thus the emotional, social and physical responses to the retailer. 27 The customer behaviour can be influenced at all points of the customer journey, because the overall perceptions of the retailer affect their choices. 28 A study into how the senses are impacted by retail atmospherics deduced that vision is the greatest sense that impacts how humans perceive space29, therefore those factors measured by vision can be of greatest importance for car showrooms.

Figure 11: Diagram showing warmer temperatures increase product valuations from customers.

29 Charles Spence and others, “Store Atmospherics: A Multisensory Perspective”, Psychology & Marketing, 31.7 (2014), 472-488 <https://doi. org/10.1002/mar.20709>.

Ambient Factors A survey by Dalziel and Pow revealed 41% of respondents stated ambience as their primary reason for enjoying a retail shop30. This is different to Baker’s research as she concluded ambient factors are mainly noticed when they are unpleasant.31 Milliman concluded sales were higher when slower music was played in retail.32 A meta-analysis review concluded music increased customer pleasure, satisfaction and behaviour in retailing. 33 Zwebner, Lee and Goldenberg concluded warmer temperatures increased product valuations from customers.34 Contrastingly, another study concluded a warmer temperature lowered customers’ willingness in negotiations35, which could be of importance, given the nature of car sales.

‘Servicescape’ cleanliness increases customer trust in brand, prestige attribution, approach behaviour and perceived service quality.36 ‘Prestige’ is considered positive connoting high quality and good image – both desired features that boost sales. Conversely, it could imply high prices, which can decrease demand.37 This may be particularly relevant to this research, given the nature of a virus and its association with cleanliness.

30 (Dalziel & Pow, 2014) <http:// www.dalziel-pow.com/wp-content/ uploads/2014/07/Our-Perspective-onInfluencing-Shopper-Behaviour1.pdf> [Accessed 22 December 2020].

31 Julie Baker, “The Role Of The Environment In Marketing Services: The Consumer Perspective”, The Services Challenge: Integrating For Competitive Advantage, 1986, 79-84.

32 Ronald E. Milliman, “Using Background Music To Affect The Behavior Of Supermarket Shoppers”, Journal Of Marketing, 46.3 (1982), 86 <https://doi. org/10.2307/1251706>.

33 Holger Roschk, Sandra Maria Correia Loureiro and Jan Breitsohl, “Calibrating 30 Years Of Experimental Research: A Meta-Analysis Of The Atmospheric Effects Of Music, Scent, And Color”, Journal Of Retailing, 93.2 (2017), 228-240 <https://doi.org/10.1016/j. jretai.2016.10.001>.

Yonat Zwebner, Leonard Lee and 34 Jacob Goldenberg, “The Temperature Premium: Warm Temperatures Increase Product Valuation”, Journal Of Consumer Psychology, 24.2 (2014), 251-259 <https:// doi.org/10.1016/j.jcps.2013.11.003>.

Sinha and Rajesh 35 Jayati Bagchi, “Role Of Ambient Temperature In Influencing Willingness To Pay In Auctions And Negotiations”, Journal Of Marketing, 83.4 (2019), 121-138 <https:// doi.org/10.1177/0022242919841595>.

Iris Vilnai-Yavetz and Shaked 36 Gilboa, “The Effect Of Servicescape Cleanliness On Customer Reactions”, Services Marketing Quarterly, 31.2 (2010), 213-234 <https://doi. org/10.1080/15332961003604386>.

37

Ibid.

27

38 Jana Möller and Steffen Herm, “Shaping Retail Brand Personality Perceptions By Bodily Experiences”, Journal Of Retailing, 89.4 (2013), 438-446 <https://doi.org/10.1016/j. jretai.2013.05.004>.

Bram Van Den Bergh and others, 39 “Altering Speed Of Locomotion”, Journal Of Consumer Research, 43.3 (2016), 407-428 <https://doi.org/10.1093/jcr/ ucw031>.

40 Robert J. Donovan and John R. Rossiter, “Store Atmosphere: An Environmental Psychology Approach”, Journal Of Retailing, 58.1 (1982), 34-57.

Holger Roschk, Sandra Maria 41 Correia Loureiro and Jan Breitsohl, “Calibrating 30 Years Of Experimental Research: A Meta-Analysis Of The Atmospheric Effects Of Music, Scent, And Color”, Journal Of Retailing, 93.2 (2017), 228-240 <https://doi.org/10.1016/j. jretai.2016.10.001>.

42 Elin Eriksson and Niklas Larsson, “A Multi-Sensory Brand Experience” (Linnaeus University, 2011).

43 Herman Cerrato, The Meaning Of Colours (Herman Cerrato, 2012).

Elin Eriksson and Niklas Larsson, 44 “A Multi-Sensory Brand Experience” (Linnaeus University, 2011).

Herman Cerrato, The Meaning 45 Of Colours (Herman Cerrato, 2012).

46 David Batchelor, Chromophobia, 2000, pp. 9-49.

47 Rachel Kaplan and Stephen Kaplan, The Experience Of Nature (Cambridge: Cambridge University Press, 1989).

48 Adam Sharr, Architecture & Culture SHARR (Hoboken: Taylor and Francis, 2012), pp. 106-118.

49

Ibid.

50 Ryann Reynolds-McIlnay, Maureen Morrin and Jens Nordfält, “How Product–Environment Brightness Contrast And Product Disarray Impact Consumer Choice In Retail Environments”, Journal Of Retailing, 93.3 (2017), 266-282 <https://doi.org/10.1016/j. jretai.2017.03.003>.

Figure 12: Diagram showing the effect of floor markers on customer behaviour through the shop. The more markers, the quicker a customer will travel through a walkway.

28

Design Factors In terms of comfort, Moller and Herm determined that when a shop used ‘hard’ seating, customers perceived the brand as “rugged”, whereas soft, leather seating gave the customer a “soft” brand personality.38 This literature could be useful in analysing how the case study wants customers to perceive the brand through aesthetics.

In a study regarding the time spent in store, floor markers spaced close together make walkways appear shorter, so the customer will take their time through it.39 Here, functional design alters the perception of movement through space, thus time, providing a larger opportunity for customers to spend40. In a showroom, this could be utilised to persuade the customer into doing the same.

Colours can be utilised by brands to provoke specific behavioural responses from customers. 41 Black and white are neutral and associated with elegance.42 One study noted “those who are achievement-orientated and ambitious favour black”43, however too much can be oppressive. In business, the blankness of white is not arousing, but expresses cleanliness and organisation. 44 45 Batchelor’s ‘whitescapes’ describe such minimalism as a sensitivity of the brain, the level between the earth and sky in amongst the bright colour of civilisation.46 In a showroom, blank décor could produce similar effects as the ART47, mentally easing customers; a calming anchor against competing products.

Austin develops this detailing ‘semi-reflective materials’ in retail spaces intensifies the effect of ‘whiteness’. 48 Bright lighting and an absence of grain avoids shadow, therefore depth.49 Such emptiness could highlight products better, seeing as customers favour a product that contrasts its background.50 A relaxing dealership experience could, again, prolong time spent.

Figure 13: Image of Arabica Coffee Flagship store in Dubai. Uses white background to enhance product and give a clean and organised aesthetic.

Figure 14: Image of the Apple shop in the MetroCentre. Uses semi-reflective materials, avoiding shadows, giving a ‘clean’ aesthetic.

29

51 Xiaoling Zhang and others, “An Examination Of Social Influence On Shopper Behavior Using Video Tracking Data”, Journal Of Marketing, 78.5 (2014), 24-41 <https://doi.org/10.1509/ jm.12.0106>.

52 Rumen Pozharliev and others, “Merely Being With You Increases My Attention To Luxury Products: Using EEG To Understand Consumers’ Emotional Experience With Luxury Branded Products”, Journal Of Marketing Research, 52.4 (2015), 546-558 <https:// doi.org/10.1509/jmr.13.0560>.

53 Julie Baker and others, “The Influence Of Multiple Store Environment Cues On Perceived Merchandise Value And Patronage Intentions”, Journal Of Marketing, 66.2 (2002), 120-141 <https:// doi.org/10.1509/jmkg.66.2.120.18470>.

Social Factors Zhang determined when shopping with friends, customers spend more time in the shop, but if too many other people, the customer will make less purchases.51 Similarly, studies have shown shopping with a friend increases the emotion associated with the purchase, potentially increasing pleasure as a consequence.52 This shows non-architectural factors impact customer behaviour too, so are worth including in this study.

“Positve employee cues”, such as greetings and uniform of employees, can make customers perceive a higher service quality than an environment without these.53 Such concept could be explored in the questionnaires to consider the non-architectural factors affecting customer behaviour.

2.2.3 Context (Car Showroom Design and Covid-19) 54 Martin M Pegler, Visual Merchandising And Display (New York: Fairchild Publications, 2012), p. 333.

55 R. A. Westbrook and W. C. Black, “A Motivation-Based Shopper Typology.”, Journal Of Retailing, 61.1 (1985), 78-103.

56 Foresight Research, “Research Reveals Dramatic Influence Of Dealerships On Automotive Brand Building And Vehicle Purchase”, Prnewswire.Com, 2010 <https:// www.prnewswire.com/news-releases/ research-reveals-dramatic-influence-ofdealerships-on-automotive-brand-buildingand-vehicle-purchase-93920004.html> [Accessed 12 November 2020].

57 Nur Hazwani Zolkifly and Shahrel Nizar Baharom, “Selling Cars Through Visual Merchandising: Proposing Emotional Design Approach”, Procedia Economics And Finance, 37 (2016), 412-417 <https://doi. org/10.1016/s2212-5671(16)30145-9>.

30

Automotive dealerships are inherently large retail spaces, as they need to house bigger objects than the traditional clothing retail. Similarly, Pegler advises large shops need to be “warmed-up”, compartmentalising the shop into smaller lifestyle vignettes.54 Clear focal points can make the customer’s journey through a larger shop more of an adventure than a chore – appealing to the more ‘experiential’ shopper55. This highlights how fashion visual merchandising can be employed in car showrooms and cements its relevance within this study.

An “inviting, modern and well-organised” showroom has been described as key in influencing a sale.56 Well respected organisations, such as banks, use their space to reinforce hierarchy and instil trust. Such trust could be useful in a car showroom, given the value of products being purchased and emphasis on connection between employee (brand) and customer. Therefore, the importance of spatial use will be explored in the case study to determine its stakeholder impact.

Figure 15: Diagram showing how ‘bigbox’ stores should create a customer adventure through the store.

31

58 Martin Lindstrom and Philip Kotler, Brand Sense ([Place of publication not identified]: Free Press, 2014).

59 C. Whan Park and others, “The Role Of Brand Logos In Firm Performance”, Journal Of Business Research, 66.2 (2013), 180-187 <https://doi.org/10.1016/j. jbusres.2012.07.011>.

60 Isabel Cantista and Teresa Sádaba, Understanding Luxury Fashion (Fairchild Books, 2012).

61 Julie Baker, “The Role Of The Environment In Marketing Services: The Consumer Perspective”, The Services Challenge: Integrating For Competitive Advantage, 1986, 79-84.

62 Foresight Research, “Research Reveals Dramatic Influence Of Dealerships On Automotive Brand Building And Vehicle Purchase”, Prnewswire.Com, 2010 <https://www.prnewswire.com/ n e w s - re l e a s e s / re s e a rc h - rev e a l s dramatic-influence-of-dealerships-onautomotive-brand-building-and-vehiclepurchase-93920004.html> [Accessed 12 November 2020].

63 Constant Berkhout., Assortment And Merchandising Strategy: Building A Retail Plan To Improve Shopper Experience (Palgrave Macmillan, Cham, 2019), p. 206.

Martin Lindstrom and Philip 64 Kotler, Brand Sense ([Place of publication not identified]: Free Press, 2014), p. 164.

Cristina Veith and Irina Dogaru, 65 “Digital Work In The Context Of Covid 19”, Manager Journal, Faculty Of Business And Administration, University Of Bucharest, 31.1 (2020), 61-69.

Constant Berkhout., Assortment 66 And Merchandising Strategy: Building A Retail Plan To Improve Shopper Experience (Palgrave Macmillan, Cham, 2019), p. 206.

Natalie Bacher, “DIGITAL AUTO 67 CUSTOMER JOURNEY - An Analysis Of The Impact Of Digitalization On The New Car Sales Process And Structure”, 2020 <https://doi.org/DOI: 10.13140/ RG.2.2.13942.42560>.

Nur Hazwani Zolkifly and Md. 68 Nasarudin Hussin, “Digital Display Of Car Showroom: Proposing An EmotionalEnvironmental Conceptual Model”, Pertanika Journals - SOCIAL SCIENCES & HUMANITIES, 25 (2017), 49-58.

Constant Berkhout., Assortment 69 And Merchandising Strategy: Building A Retail Plan To Improve Shopper Experience (Palgrave Macmillan, Cham, 2019), p. 206.

32

Zolkifly and Baharom are among the first to study car showrooms specifically, concluding prioritising the role of emotion and perception when designing could convert prospects into buyers.57 They highlighted the lack of guidelines for dealers, detailing each dealership controls layout. This research aims to clarify if such findings are consistent within the case study.

“Buying a new car is both a big deal and a sensuous experience”58 highlighting the pressure and pleasure customers associate with purchasing a car. Shoppers can form deep relationships with brands59, therefore feel emotions when purchasing60. The role of emotion within the automotive industry is fully understood, however has not been exploited throughout the ‘customer experience’.

The retail sector has seen a shift to online sales to combat the physical closures faced as a consequence of the Covid-19 pandemic. E-commerce could be even more attractive to businesses, as both showroom running costs and staff wages would be axed. Buying online could save customers time, something Becker concluded they value.61 Contrastingly, Foresight research concluded that a favourable dealership visit was more influential in the purchase process than the internet.62 Consistently, Berkhout noted customer decision lacks rational thought and is dependent on context.63 Most customers want to experience the product physically before they buy64; some experiences, such as test drives, cannot be felt digitally.65 Most businesses benefit from having

a mixture of distribution channels 66 67 68 , allowing retailers to appeal to various shopper typologies.69 This suggests while an online presence can be beneficial, there is still a need for the showroom, thus validating this study.

Economic factors influence consumer behaviour70, concurring with Wapner’s organismic theory. 71 Particularly pertinent to this research, one study surmised businesses must focus on customer experience and added value to survive in harsh economic climates. 72 For the automotive industry, the showroom forms part of this experience and could be vital, given its importance recognised in earlier literature.

Changes to layout, personal protective equipment (PPE) implementation, enhanced cleaning and social distancing73 minimise the potential Covid-19 spread among customers and employees, but will affect the environment, which could impinge on customer and employee behaviour.

As the world is still in the midst of the pandemic, there is little academia regarding its impact on the car industry. The changes made during Covid-19 have altered the environment of the showroom which will inevitably affect both customer and employee behaviour. This research aims to contribute toward filling this gap, exercising the literature review knowledge in the case study.

70 Dhruv Grewal, Michael Levy and V. Kumar, “Customer Experience Management In Retailing: An Organizing Framework”, Journal Of Retailing, 85.1 (2009), 1-14 <https://doi.org/10.1016/j. jretai.2009.01.001>.

71 Seymour Wapner, “Transactions Of Persons-In-Environments: Some Critical Transitions”, Journal Of Environmental Psychology, 1.3 (1981), 223-239 <https://doi.org/10.1016/s02724944(81)80041-2>.

72 Dhruv Grewal, Michael Levy and V. Kumar, “Customer Experience Management In Retailing: An Organizing Framework”, Journal Of Retailing, 85.1 (2009), 1-14 <https://doi.org/10.1016/j. jretai.2009.01.001>.

73 Project Phoenix - A Quick Guide For Dealerships During Coronavirus (COVID-19) Pandemic (Sytner Group, 2020).

Figure 16: Diagram showing the change in spatial requirements during the pandemic.

33

Chapter 3: Case Study - Mercedes-Benz of Newcastle

34

Chapter 3: Case Study (Mercedes-Benz of Newcastle) 3.1 Changes made to the Case Study during Covid-19

Figure 17: Example car showroom plan showing changes made during Covid-19.

The above diagram was circulated before Mercedes-Benz of Newcastle opened during the pandemic. It details the changes to be made to the showroom, in line with government guidance.

35

Pre-Pandemic Car Showroom CAFE AND SERVICE AREA

Figure 18: Case Study Collage PrePandemic.

The following collages have been made to give an overview of the changes made and how this has affected the atmosphere of the dealership.

This collage shows the dealership before the pandemic, using images from Google Earth.

The shape of the floorplan overlayed illustrates the layout of these images in relation to one another.

36

USED CAR ZONE

NEW CAR ZONE

Pre-Pandemic Car Showroom SMART ZONE

AMG ZONE

NEW CAR ZONE

ENTRANCE

37

Car Showroom during Pandemic

CAFE CLOSED, SERVICE DESKS USING SPACE

Figure 19: Case Study Collage During the Pandemic.

This collage shows the dealership during the pandemic.

The images in the collage were taken by the researcher and the same method in layout applies.

USED CAR ZONE NOW SALES OFFICE

NEW CAR ZONE HAS LESS PRODUCT

38

Car Showroom during Pandemic SMART ZONE EMPTY

AMG ZONE EMPTY

ONE-WAY SYSTEM THROUGH NEW CAR ZONE

ENTRANCE WITH ADDED SIGNAGE

39

Pre-Pandemic Car Showroom

Figure 18: Case Study Collage PrePandemic.

40

Car Showroom during Pandemic

Figure 19: Case Study Collage During the Pandemic.

41

Pre-Pandemic Customer Journey

Figure 20: Collage showing customer journey pre-pandemic.

The customer journey beforehand is less controlled and has multiple entrances and exits.

The stop points are random and more of the space is used. During the pandemic, the customer makes predictable stops, to sanitise their hands, read the signage, be greeted by the host who shows them the direction for their appointment and then the customer exits through the one way system. There should be no crossing direction of customers.

Figure 21: Diagram showing customer movement through the case study prepandemic.

42

Customer Journey During Pandemic

Figure 22: Collage showing customer journey during the pandemic.

Figure 23: Diagram showing customer movement through the case study during the pandemic.

43

Pre-Pandemic Car Showroom Figure 24: Public realm pre-pandemic.

Public Realm

Figure 25: Spatial use pre-pandemic.

Spatial Use

Figure 21: Customer movement prepandemic.

Customer Movement

44

Car Showroom during Pandemic Figure 26: Public realm during the pandemic.

Public Realm Public realm has decreased by 65%. This is because the need for social distancing has expanded the staff office to areas where cars used to be displayed.

Figure 27: pandemic.

Spatial

use

during

the

Spatial Use The number of cars on display in the showroom has reduced by 70-96% during the pandemic. Such a significant reduction shows a shift in function of the showroom, with the case study relying more on the external pitch and online to sell product.

Figure 23: Customer movement during the pandemic.

Customer Movement Customer movement is more controlled by the brand with the changes introduced, such as a one-way system and reduction in public space.

45

46

Synthesis - Findings and Analysis The following pages contain collated data from the questionnaire, interview and observations/case study. Findings are presented as follows:

Employee Comments:

Interviewee Findings:

Comments in this box can be found in Appendix 1 Questionnaire

Comments in this box can be found in Appendix 2 - Interview Transcription

47

3.2 Synthesis - Findings and Analysis 3.2.1 Ambient Factors

Ambience Atmospheric Condition

Figure 28: Questionnaire Atmospheric Condition.

Result

Figure 29: Questionnaire Result Atmospheric Condition Comment.

-

-

Figure 30: Interview - Atmospheric Condition Comment.

Figure 31: Case Study - Image showing atmospheric condition of showroom.

48

Employee Comments:

Interviewee Findings:

“I believe the LIGHT, SOUND AND VIEW are a big factor in mood and behaviour of customers”

The expansive view “BLOWS PEOPLE AWAY”, but can be IMPOSING for customers. The showroom host team have to work hard to break down the barriers customers may feel when entering.

The questionnaire concluded that the atmospheric condition of the showroom has a positive impact on customer behaviour, with 69% stating it has a very positive impact.

One respondent noted “light, sound and the view” are key factors in influencing behaviour. The interview highlighted some customers can be intimidated by such view.

Ambience Temperature

Employee Comments:

Interviewee Findings:

“COLD OR TOO HOT temperature means the customer is NOT RELAXED, a relaxed customer is an easier customer to deal with”

The temperature of the showroom is NOT CONTROLLED. It is down to the SALES EXECUTIVES to decide if they are too hot or cold and ACT ACCORDINGLY.

92% of employees agreed that a comfortable temperature has a positive impact on customer behaviour. One added it makes the customer feel more relaxed, thus “easier to deal with”. The interview revealed the sales executives monitor the temperature. This could be advantageous, as both staff and customers experience the same temperature, so it can be adjusted easily if not suitable.

Figure 32: Questionnaire Temperature.

Result

-

Figure 33: Questionnaire Temperature Comment.

Result

-

Figure 34: Comment.

Interview - Temperature

Figure 35: Case Study - Image showing the one-way system exit door open, impacting temperature.

49

Ambience Background Music

Figure 36: Questionnaire Background Music.

Result

-

Employee Comments: Figure 37: Questionnaire Result Background Music Comment.

-

Figure 38: Questionnaire Result Background Music Comment.

-

Figure 39: Interview - Background Music Comment.

“Makes the place feel more FRIENDLY and RELAXING” “Adds again to that COMFORTABILITY factor”

Interviewee Findings: The background music is set up centrally, with NO PLANNING for the tracks played. It is simply for licensing reasons that Sytner have their own radio that is played in the showroom.

The questionnaire concluded that background music does not have a negative effect on customer behaviour. The comments, again, mentioned how it adds to the customer feeling relaxed and comfortable. Interviewing showed there is no particular type of music played.

50

Ambience Cleanliness

Figure 40: Cleanliness.

Questionnaire

Result

-

Figure 41: Questionnaire Cleanliness Comment.

Result

-

Figure 42: Questionnaire Cleanliness Comment.

Result

-

Nearly 70% of respondents agreed cleanliness has a positive impact on customers, with comments suggesting a high level of cleanliness is what is expected from a ‘prestige’ brand. Another suggested it demonstrates the level of which the brand looks after their customers and product.

Employee Comments:

“as you’re in a ‘PRESTIGE’ showroom you EXPECT high cleanliness”

“It is all about IMAGE. Customers CHOOSE to purchase from a DEALERSHIP even when they have the option to purchase online. If the dealership is MESSY or has rubbish floating around the carpark, what would that say on HOW WE LOOK AFTER OUR stock and CUSTOMERS.”

Interviewee Findings:

The cleaning is SUBCONTRACTED and the company have a list of tasks they must complete.

Figure 43: Comment.

Interview

-

Cleanliness

Figure 44: Case Study - Image showing customer tables with extra cleaning equipment and perspex screens during Covid-19.

51

Ambience Other

Interviewee Findings:

Figure 45: Interview - Scent Comment.

Scent is NOT CONTROLLED in the case study, however the Managing Director said she is looking into IMPLEMENTING one.

Figure 46: Interview - Uniform Comment.

Staff wear a uniform to provide “CONSISTENCY AND RECOGNITION” for customers and to “SET THAT STANDARD” Mercedes-Benz and its customer demands.

Figure 47: Case Study - Image showing Staff wearing uniform.

52

53

3.2.2 Design Factors

Design Café

Figure 48: Questionnaire Result - Cafe.

The Managing Director calls the café the “heartbeat” of the dealership and a sales executive describes it as “inviting”, connoting life and busyness. This area is seemingly more influential than anticipated in contributing to the atmosphere of the showroom. 85% of respondents agreed it has a positive impact on customer behaviour.

Employee Comments:

Figure 49: Questionnaire Result - Cafe Comment.

Figure 50: Interview - Cafe Comment.

Figure 51: Case Study - Image showing what was the cafe area, now closed during Covid-19.

54

Interviewee Findings:

“This aspect gives customers an The café is described as the INVITING feel.”

“HEARTBEAT” of the dealership.

Design Sales Office

Figure 52: Questionnaire Result - Sales Offices..

Employee Comments:

“some CUSTOMERS HATE THIS as they think that is where the “plotting takes place” during trying to sell the car”

“I believe this can be TAKEN EITHER WAY, with a ‘us’ and ‘them’ feel.”

The effects of the sales office being hidden produced mixed responses from employees.

The comments concluded it could either separate the seller and buyer and add an element of distrust or customers may like it as they do not feel they are being ‘watched over’. Most respondents, however, voted it had no impact on customer behaviour.

“A sales office away from the customer is GREAT. this means when negotiations are taking place, they are not feeling like they are being WATCHED OVER by a manager”

Figure 53: Questionnaire Result - Sales Offices Comment.

Figure 54: Questionnaire Result - Sales Offices Comment.

Figure 55: Questionnaire Result - Sales Offices Comment.

Figure 56: Case Study - Image showing sales offices during the pandemic where the used car display used to be prepandemic.

55

Design Other

Interviewee Findings:

Figure 57-59: Interview - Other Design Comments.

Pre-pandemic there is 25 to 30 display cars in the showroom.

The layout is determined by the ‘ZONES’ in place: AMG, used cars, new cars and SMART.

Mercedes-Benz of Newcastle would love MORE SPACE, or the dealership will have to “grow by the clock” to progress.

Aesthetics are led by CORPORATE IMAGE that Mercedes-Benz have in place, but currently undergoing TRANSITION. Layout is the Manager’s decision.

56

Figure 60: Case Study - Images comparing the AMG and Smart ‘zones’.

The different zones demonstrate the different product and have different ‘atmospheres’. AMG is more dramatic whereas SMART is lighter and fresher, showing the differences in the products.

Figure 61: Case Study - Images comparing number of cars on display during the pandemic, taken a month apart.

57

Social

3.2.3 Social Factors

Brand Reputation

Figure 62: Questionnaire Result - Brand Reputation..

Figure 63: Questionnaire Result - Brand Reputation Comment.

Employee Comments:

Interviewee Findings:

“A customer is purchasing from a prestige brand, they expect PRESTIGE SERVICE”

The dealership has a CORE OF CUSTOMERS who come in just for a free coffee, it is part of the MERCEDES-BENZ LIFESTYLE which sets them apart from other manufacturers.

“Gives the customer a sense of ACCOMPLISHMENT, being able to come to a ‘prestige’ showroom and buy their DREAM car.”

The images and scenes on the walls with the LOGOS also reinforce this LIFESTYLE that the customer would be PURCHASING a slice of if they purchase a car.

Figure 64: Questionnaire Result - Brand Reputation Comment.

Figure 65: Interview - Brand Reputation Comment.

Figure 66: Interview - Brand Reputation Comment.

100% of respondents determined that a ‘prestige’ brand had a positive impact on customer behaviour. The interview uncovered the ‘lifestyle’ that accompanies purchasing from such brand. One employee suggested customers expect a service to match the reputation of the brand. Another said the customer feels ‘a sense of accomplishment’ with purchasing from the brand, which could influence their behaviour.

58

Social Other

Figure 67: Case Study - Images showing ‘lifestyle’ imagery above used car area.

Interviewee Findings:

A disgruntled customer can EASILY INFLUENCE other customers in the same area.

The showroom affects EMPLOYEE BEHAVIOUR as they are always “ON SHOW”.

Figure 68: Interview - Other Social Comment.

Figure 69: Interview - Other Social Comment.

Figure 70: Case Study - Images showing graphic in handover bay.

59

Covid-19 Changes

3.2.4 Covid-19 Changes

Covid-19 Changes Overall

Figure 71: Questionnaire Result - Covid-19 Changes Overall.

Figure 72: Questionnaire Result - Covid-19 Changes Overall Comment.

Employee Comments:

Interviewee Findings:

“Our covid changes makes the customer feel SAFE and then overall RELAXED to be here”

staff are OVERCOMPENSATING with BODY LANGUAGE and exaggerated facial expressions to welcome the customers to an otherwise COLD ENVIRONMENT and CONNECT with them.

“Our customer feedback has been VERY POSITIVE and customers have commented how SAFE they feel”.

already been “INSTITUTIONALISED” to the ‘NEW NORMAL’

Figure 73: Questionnaire Result - Covid-19 Changes Overall Comment.

Figure 74: Interview - Covid-19 Changes Overall Comment.

Figure 75: Interview - Covid-19 Changes Overall Comment.

The questionnaire exhibited there has been varied impacts on customer behaviour from the Covid-19 changes. 77% of respondents said the changes have had a positive effect on customer behaviour. The comments indicate this is because the customer feels “safe” with the measures put in place. The interviewee thought customers were already used to the “new normal”.

60

Figure 76: Case Study - Images showing the entrace with added signage and one way system.

61

Covid-19 Changes Physical Product

Figure 78: Questionnaire Result - Physical Product.

Figure 79: Questionnaire Result - Pysical Product Comment.

Figure 80: Interview - Physical Product Comment.

Figure 81: Case Study - Image showing tactile material options when purchasing online. Not available online.

62

Employee Comments:

Interviewee Findings:

“some people like to VIEW AND TOUCH a car however some are more than HAPPY TO PURCHASE a car WITHOUT SEEING IT AT ALL”

Mercedes-Benz would NOT consider a shift to ONLINE ONLY sales, although it is POSSIBLE to purchase a car and have it delivered to you completely online.

92% of respondents said that seeing the car physically positively impacted customer behaviour, however the comments suggested some customers are “happy to purchase” without physically seeing the car. The interviewee backed this up saying, although it is possible to buy completely online, the brand would not consider a shift to online only sales.

Covid-19 Changes Covid-19 Spatial Arrangements

Figure 82: Questionnaire Result - Spatial Arrangements.

Employee Comments:

Interviewee Findings:

“I think overall the customer would FEEL A LOT SAFER if this was the case”

Some changes will be kept post-pandemic, such as UNACCOMPANIED TEST DRIVES and HAND SANITISATION stations, although the CAFÉ will certainly be RE-OPENING.

“The EXPECTATION of our customers would be to go back.

It has been mentioned that they MISS THE OLD FEEL OF THEIR VISTS.”

“It’s the ‘new normal’ but people want a SENSE OF PREVIOUS NORMALITY.”

31% of respondents said retaining the spatial arrangements made during the pandemic, even after the pandemic would have no impact on customer behaviour.

23% said this would negatively impact the customer and 46% said it would positively affect the customer. Comments suggested the measures helped the customer feel safe, whereas others said customers missed the “old feel of their visits”.

Figure 83: Questionnaire Result - Spatial Arrangements Comment.

Figure 84: Interview Arrangements Comment.

-

Spatial

Figure 85: Questionnaire Result - Spatial Arrangements Comment.

Figure 86: Questionnaire Result - Spatial Arrangements Comment.

The interview revealed not all changes have been negative.

63

Covid-19 Changes Other

Interviewee Findings:

Figure 87: Interview - Covid-19 Changes Other Comment.

Figure 88: Interview - Covid-19 Changes Other Comment.

Figure 89: Case Study - Image showing example of the ‘niceties’ kept.

64

HEALTH AND SAFETY came first, but some “NICETIES” were kept.

The brand actually “ROCKS THE YELLOW AND BLACK TAPE” The ONLINE STRATEGY has been ACCELERATED by the pandemic. Customers are very price conscious and make their PURCHASING DECISIONS online, before even visiting a showroom.

Colleague email:

Figure 90: Email showing financial results of case study during the pandemic. £15.8M profit.

65

66

Chapter 4: Discussion

67

Chapter 4: Discussion 4.1 Key Findings Covid-19 has impacted spatial-use and human interaction. In the case study, this means the way customers experience the brand has too.

Figure 91: Sketches showing the key findings.

In answering the key questions, the factors that affect customer behaviour in a space can be divided into ambient, design and social categories. The primary research has concluded that the temperature, café area and spatial use are the factors that have changed during the pandemic and could affect customer behaviour the most.

The introduction of a one-way system minimised the opportunity for humans to cross paths and spread the virus. Consequently, a door normally used for cars was used as a temporary exit for customers. Not designed for customers, the door is not automatic, so has been wedged open at all times. From the author’s observations, this has reduced the temperature in the showroom and staff are often seen with coats on.

Government guidelines insist personal protective equipment is worn continuously by all. Eating and drinking in the café would have permitted users to remove such equipment, therefore it has closed. Both the interview and questionnaire emphasised its weighting on customer comfortability.

There was a significant reduction in space for customers, as demonstrated by re-use of space and reduction in product displayed in the showroom. Such changes have occurred due to the need for social distancing.

The discussion will unpack these findings further, highlighting the potential ramifications for customer behaviour, based on the primary research and literature review.

68

4.2 Discussion 4.2.1 Ambience Temperature74 and cleanliness75 are ambient elements that affect customer behaviour in a car showroom.

92% of questionnaire respondents agreed comfortable temperature has a positive impact on customer behaviour, stating it lead to a ‘relaxed’ customer that is “easier to deal with”. Staff monitor temperature manually – a subjective method, relying on different individual opinions which could cause conflict. Alternatively, customers could communicate their feelings regarding the temperature to staff so they can act accordingly, giving a more ‘bespoke’ service.

The temperature cannot be monitored during the pandemic due to the implications of the one-way system. Staff now regularly wear coats, signalling an uncomfortable temperature in the showroom which could cause customers to leave, not spend, or gain an unfavourable opinion of the brand, avoiding future visits. It is worth noting that such observations were made in December, when the weather outside was cooler; an open door in Summer may actually be pleasurable for customers and staff.

Congruent with such findings, the literature suggests customers value products less76 in colder environments, making it harder for sales executives to sell. Alternatively, another study suggested warmer temperatures reduced customer willingness to negotiates77, meaning cooler temperatures could be beneficial for negotiating sales.

The ART suggests time outdoors or a view helps humans to re-charge following mental fatigues78. In this way, the open door brings the fresh air in, potentially maximising its restorative effect, rather than just looking at the view.

74 Yonat Zwebner, Leonard Lee and Jacob Goldenberg, “The Temperature Premium: Warm Temperatures Increase Product Valuation”, Journal Of Consumer Psychology, 24.2 (2014), 251-259 <https:// doi.org/10.1016/j.jcps.2013.11.003>.

75 Iris Vilnai-Yavetz and Shaked Gilboa, “The Effect Of Servicescape Cleanliness On Customer Reactions”, Services Marketing Quarterly, 31.2 (2010), 213-234 <https://doi. org/10.1080/15332961003604386>.

76 Yonat Zwebner, Leonard Lee and Jacob Goldenberg, “The Temperature Premium: Warm Temperatures Increase Product Valuation”, Journal Of Consumer Psychology, 24.2 (2014), 251-259 <https:// doi.org/10.1016/j.jcps.2013.11.003>.

77 Jayati Sinha and Rajesh Bagchi, “Role Of Ambient Temperature In Influencing Willingness To Pay In Auctions And Negotiations”, Journal Of Marketing, 83.4 (2019), 121-138 <https:// doi.org/10.1177/0022242919841595>.

78 Rachel Kaplan and Stephen Kaplan, The Experience Of Nature (Cambridge: Cambridge University Press, 1989).

Phillip Kotler, “Atmospherics As 79 A Marketing Tool”, Journal Of Retailing, 49.4 (1973), 48-64 80 Iris Vilnai-Yavetz and Shaked Gilboa, “The Effect Of Servicescape Cleanliness On Customer Reactions”, Services Marketing Quarterly, 31.2 (2010), 213-234 <https://doi. org/10.1080/15332961003604386>.

All respondents agreed good cleanliness positively impacted customer behaviour. Consistent with the literature79 80, one commented the level of cleanliness communicated the brand’s concern for customer and product. Cleanliness could also increase the “safety” customers feel during a pandemic, therefore how long they stay.

Figure 92: Image from the case study showing open door and expansive view.

Could help mentally re-charge customers.

69

4.2.2 Design (Function and Aesthetic) The need for social distancing directly affects layout, spatial use and function.

81 Jana Möller and Steffen Herm, “Shaping Retail Brand Personality Perceptions By Bodily Experiences”, Journal Of Retailing, 89.4 (2013), 438-446 <https://doi.org/10.1016/j. jretai.2013.05.004>.

85% of respondents said having an open café area positively impacted customer behaviour. Described as the “heartbeat” of the dealership by the interviewee, its closure signifies a loss of ‘life’ and ‘warmth’ and loss of “inviting” feel that persuades the customer to spend time and money.

82 Phillip Kotler, “Atmospherics As A Marketing Tool”, Journal Of Retailing, 49.4 (1973), 48-64

Following the literature, the loss of ‘soft comfort’ could change customers’ perceptions of the brand to a more “rugged” one81, which could

83 Constant Berkhout., Assortment And Merchandising Strategy: Building A Retail Plan To Improve Shopper Experience (Palgrave Macmillan, Cham, 2019), p. 206.

84 R. A. Westbrook and W. C. Black, “A Motivation-Based Shopper Typology.”, Journal Of Retailing, 61.1 (1985), 78-103.

Dhruv Grewal, Michael Levy 85 and V. Kumar, “Customer Experience Management In Retailing: An Organizing Framework”, Journal Of Retailing, 85.1 (2009), 1-14 <https://doi.org/10.1016/j. jretai.2009.01.001>.

86 James J Gibson, The Senses Considered As Perceptual Systems (Westport, Conn.: Greenwood Press, 1983).

connote the brand has less consideration for their customers82. Similarly, this affects the context of the purchase, which Berkhout states affects buying decisions 83. Such theories could affect customers’ willingness to invest in a new vehicle.

The closed café highlights an absence of the ‘lifestyle’ customer buy into, therefore the ‘experiential’ shopper84 could be less satisfied with their visit. This could be particularly influential for customer behaviour during the pandemic, as the literature suggests customers need ‘added value’ in times of recession to spend. 85 A lack of satisfaction could make it harder to convince customers to part with their cash during the pandemic.

When asked about retaining changed spatial arrangements postpandemic, 41% of respondents gave a positive response, namely due to an increased feel of “safety”. Others commented customers missed the “old feel of their visits”, missing previous comfort, whilst others value the safety.

Affordance theory could be applied to the use of Covid-19 signage, as customers take cues from the environment to operate according to the ‘new normal’.86

70

Figure 93: Image from the case study showing the no exit signs on the back of the customer entrance. The customer has to ignore the ’automatic door’ sign and use their own knowledge to understand the door is no longer an exit and act accordingly.

71

87 Ryann Reynolds-McIlnay, Maureen Morrin and Jens Nordfält, “How Product–Environment Brightness Contrast And Product Disarray Impact Consumer Choice In Retail Environments”, Journal Of Retailing, 93.3 (2017), 266-282 <https://doi.org/10.1016/j. jretai.2017.03.003>.

88

Ibid.

89 Seymour Wapner, “Transactions Of Persons-In-Environments: Some Critical Transitions”, Journal Of Environmental Psychology, 1.3 (1981), 223-239 <https://doi.org/10.1016/s02724944(81)80041-2>.

90 Martin M Pegler, Visual Merchandising And Display (New York: Fairchild Books, 2012), p. 333.

91 Herman Cerrato, The Meaning Of Colours (Herman Cerrato, 2012).

92 David Batchelor, Chromophobia, 2000, pp. 9-49.

93

Ibid.

Figure 94: Close-up of the colours seen in the case study, both acting as neutral backgrounds to the product and signage.

72

Such signage inevitably alters the aesthetic of the showroom, however the interview suggested Mercedes-Benz “rock the yellow and black tape”. This could be because the largely white background of the showroom provides a neutral, relaxing background against the arousing products and signage. 87 88 Additionally, the effects of this could be amplified, as display cars have decreased by 70%, reducing what customers have to subconsciously process. Alternatively, the interview suggested customers were “already institutionalised” to such changes, aligning with literature stating external factors affect customer behaviour.89 Wall graphics depict the Mercedes-Benz “lifestyle”. Customers “resonate” and “visualise” themselves having bought into the brand. The impact of this may have been diluted by the additional Covid-19 signage, potentially over-stimulating the customer.

Aligning with the literature90, the case study has ‘zones’, although to differentiate models rather than to fragment space for customer benefit.

Despite this, each ‘zone’ could command different behaviour from the customer. Ambitious customers prefer black91, therefore the dark ‘AMG’ zone could appeal to these customers, giving them a sense of ‘success’ when purchasing. The light ‘Smart’ area is reminiscent of the literature discussing ‘whitescapes’92 93, suggesting it is mentally relaxing, highlighting products to a range of customers. The ‘atmosphere’ of individual brand identities could affect customer behaviour within the ‘zones’.

1.1.3 Social The number of others, their behaviour and appearance can affect customer behaviour in the car showroom. PPE and social distancing have altered these factors during the pandemic.

The interview suggested staff wear uniform to maintain the high standard that goes hand-in-hand with the brand and ‘showroom hosts’ greet customers. Baker calls these “positive employee cues” and concluded customers perceive a higher service quality when they’re present.94 ‘Prestige’ connotes high quality and good image95. 100% of questionnaire respondents said ‘prestige brand reputation’ had a positive effect on customer behaviour.

The interview was congruent with the literature 96 97, suggesting a disgruntled customer can influence others in the same area. Social distancing could decrease this, but hinder the employee-customer connection through lack of tactility.

High customer density creates lower sales98 , so reduced customer capacity could benefit the business and potentially explain why they made a “record profit of £15.8M” 99 in 2020.

94 Julie Baker and others, “The Influence Of Multiple Store Environment Cues On Perceived Merchandise Value And Patronage Intentions”, Journal Of Marketing, 66.2 (2002), 120-141 <https:// doi.org/10.1509/jmkg.66.2.120.18470>.

95

Ibid.

Mary Jo Bitner, “Servicescapes: 96 The Impact Of Physical Surroundings On Customers And Employees”, Journal Of Marketing, 56.2 (1992), 57 <https://doi. org/10.2307/1252042>.

97 Anne L. Roggeveen, Dhruv Grewal and Elisa B. Schweiger, “The DAST Framework For Retail Atmospherics: The Impact Of In- And Out-Of-Store Retail Journey Touchpoints On The Customer Experience”, Journal Of Retailing, 96.1 (2020), 128-137 <https://doi.org/10.1016/j. jretai.2019.11.002>.

98 Rumen Pozharliev and others, “Merely Being With You Increases My Attention To Luxury Products: Using EEG To Understand Consumers’ Emotional Experience With Luxury Branded Products”, Journal Of Marketing Research, 52.4 (2015), 546-558 <https:// doi.org/10.1509/jmr.13.0560>.

99 Nick RobinsonEmily Ducker to , “2020 Financial Results”, 2021.

73

4.2.4 Covid-19 Changes Primary research illustrated how ambient, design and social factors can make customers feel “relaxed”, “comfortable” and, in response to Covid-19 measures, “safe” – encouraging greater time and money spent100.

100 Robert J. Donovan and John R. Rossiter, “Store Atmosphere: An Environmental Psychology Approach”, Journal Of Retailing, 58.1 (1982), 34-57.

101 Foresight Research, “Research Reveals Dramatic Influence Of Dealerships On Automotive Brand Building And Vehicle Purchase”, Prnewswire.Com, 2010 <https://www.prnewswire.com/ n e w s - re l e a s e s / re s e a rc h - rev e a l s dramatic-influence-of-dealerships-onautomotive-brand-building-and-vehiclepurchase-93920004.html> [Accessed 12 November 2020].

Figure 95: Image from the case study showing organised space. One-way system and space around cars looks clean and orderly. The showroom also has a modern aesthetic.

74

An “inviting, modern and well-organised” showroom is key in influencing a sale. 101 Key findings (café closure, temperature reduction, reduced customer autonomy and space) could deem the showroom less ‘inviting’. However, changes to space, such as the one-way system, could make the case study seem more ‘organised’. This balance could explain the mixed responses from the questionnaire regarding retaining Covid-19 spatial arrangements.

The interview suggested customers have “left glowing feedback” about the safety of the dealership following Covid-19, with 77% of questionnaire respondents agreeing the changes had been positive. This is an interesting result, as both the temperature and café have been affected by the pandemic, which are both contributing factors to how comfortable a customer feels. Therefore, the ‘comfortability’ must have been impacted as a result of the Covid-19 sanctions. However, results could be attributed to the customer feeling “safe”, due to actions taken in relation to the pandemic, such as increased cleanliness. It is understood that ‘safety’ has been prioritised over ‘comfort’ during the pandemic.

75

4.4 Limitations Generalisability The generalisability of the results is limited by the small sample size and specificity of the research – the questionnaire respondents had to be a sales executive employed at the case study. As a result, there were only thirteen respondents, but with a 100% response rate. The questionnaire, interview, case study and participant observation combined produced a rich, holistic image of how the case study’s atmosphere has changed during the Covid-19 pandemic. However, it cannot be assumed that such findings are applicable to the wider automotive industry, given the small sample size.

A larger sample size spread across multiple brands of the automotive sector would improve the generalisability.

Reliability The reliability of this data has been impacted by the perspective taken to gauge the customer attitudes and behaviours. All data is from the employees’ perspective of customer feelings and opinions, so cannot be taken as reality. It was decided asking customers to complete surveys could have reflected negatively on the brand and impacted the ‘customer experience’ itself.

Given employees’ regular interaction with customers, it was decided the combination of methods used was sufficient for exploratory research.

Another risk was participant as observer could produce bias response, only including favourable observations. The combination of research methods helped mitigate this, highlighting anomalies and validating trends and themes amongst findings.

The risk of bias was prevalent from interviews and questionnaires, so both were phrased as open questions to avoid this. Similarly, the questionnaires were anonymised to further reduce this risk.

Scope A limitation of the study is the detail to which each ambient, design and social factor has been studied. As an example, given the number of measures that could quantify the quality of light, this study did not have the depth to investigate in such detail. This research did not do this because of the exploratory nature of the study, so it aimed to cover the breadth of factors, not depth of one, to give a rounded viewpoint of how the Covid-19 changes have affected customer behaviour.

76

Previous Studies At the time of writing, the UK population is still living through the Covid-19 pandemic, so there is scarce resources regarding its impact on retail and the automotive industry. Therefore, the findings are speculative and hard to contextualise in the industry, particularly given its ever-changing nature. Equally, there was little research regarding car showroom design, making it hard to apply retail atmospheric findings specific to the case study with absolute confidence.

This research does contribute towards a growing body of knowledge regarding both Covid-19 and car showroom atmospherics.

77

4.5 Recommendations Practical Implementation: Given the key findings of the primary research, the case study should look to combat the changes made to the showroom that most influence the customer experience.

The case study could implement an automatic door to turn the temporary exit into a permanent one, helping to mitigate the ‘uncomfortable’ temperatures from seasonal variations with the one-way system still in place.

More research needs to be conducted within the dealership to determine an ‘optimum’ temperature for positive customer and employee behaviour.

The implementation of an automatic thermostat could then monitor this, ensuring a pleasurable customer experience.

The loss of the café has been significant in impacting the atmosphere of the showroom, therefore it is worth investigating if there is a way this can be maintained during the pandemic to ‘add value’ to the customer experience. Perhaps the café could operate on a take-away only basis, or within an outdoor, sheltered pavilion (Fig.97).

The loss of customer space was large in the case study, with most cars being displayed on the external pitch. This could be curated more, with smaller lifestyle ‘vignettes’ and ‘niceties’, such as flowers and comfortable, distanced seating. Combined with a takeaway café, the customer journey could be re-imagined to the high standard its customers expect, even during a pandemic (Fig.98).

Research into how ambient, design and social elements affect this external ‘showroom’ would be beneficial to help businesses adapt and thrive.

In reduced space, floor markers should be used to manipulate time spent by the customer moving through the one way system, allowing they to digest the limited product range more.

78

Figure 96: Case study site plan highlighting where takeaway cafe could go.

Figure 97: Case study sketch/collage of what the drive thru cafe to go could look like.

79

80

Figure 98: Case study proposed customer journey collage. ‘Added value’ experienced during the pandemic.

81

Further Research: Studies investigating the specific customer opinion of such changes would benefit research and create more reliable findings. Similarly, a larger sample should be selected to produce more accurate, quantifiable results.

Further research is needed to establish the impact Covid-19 has had on the automotive sector as a whole, accounting for internal and external changes. The effects of PPE on user behaviour should be specifically looked into.

The study only focused on factors affecting the showroom atmosphere both pre-pandemic and during. To gain a full longitudinal perspective, it would be advisable to see how the showroom changes post-pandemic.

Ambient, design and social factors should be researched further to investigate their potential interdependence or interconnectedness on one another.

Research should be conducted specifying dealership typologies, detailing how architects should design car showrooms in the future, both during and post-pandemic.

The online presence of retailers is a growing field, but it forms part of the ‘customer experience’. Therefore, more research could be conducted to determine how the online presence influences customer behaviour in the car showroom. Likewise, research assessing the presence of ambient, design and social factors online could be beneficial in determining customer behaviour.

82

Chapter 5: Conclusions

83

Chapter 5: Conclusion 5.1 Conclusions This research aimed to identify how the retail atmospherics in a car showroom have changed because of Covid-19 measures and hypothesize how this could impact customer behaviour. Combining qualitative and quantitative research methods, this research provided a rich, holistic perspective of this. It concluded the ‘customer experience’ is less “comfortable” for customers, which could prompt them to spend less time and money in the car showroom.

The most significant changes seen in the dealership studied during Covid-19 have been temperature, lack of comfort and a reduction in customer movement and space. These have impacted the ‘customer experience’ overall through their likely psychological effects that can alter behaviour.

The results indicate the temperature has changed, because a large door is now open at all times, due to a one-way system introduction. This could be positive for providing fresh air to mentally re-charge customers.

Alternatively, the primary research suggests a cooler temperature means customers will be less relaxed and harder to “deal with”.

The interview suggested the café forms part of the MercedesBenz lifestyle, therefore ‘customer experience’. Its loss has decreased the ‘added value’ customers want in times of recession to encourage spending.

Therefore, customer behaviour may have been negatively impacted, especially given the cooler showroom temperature.

The customer journey has changed, with more ‘pauses’ and less autonomy. The need for social distancing among users meant a rearrangement of existing space in the dealership studied - substantially minimising public realm and number of cars on display. Hand sanitisation, temperature checks and signage were added which could frustrate customers, as the questionnaires suggested customers “miss the old feel of their visits”.

Mercedes-Benz of Newcastle are planning on keeping the sanitisation stations post pandemic, potentially indicating their positive impact on customer behaviour. This could be because the pauses make the customer spend more time in the showroom, so increase spending.

84

“Comfort”, “safety” and “inviting” were themes emerging from the research, the literature confirming such pleasurable emotions could make the customer spend more time and money in the showroom. The Covid-19 measures could increase the feeling of ‘safety’, but decrease the ‘inviting’ and ‘comfort’ elements, perhaps explaining the mixed responses from the questionnaire.

While the small sample size of the questionnaire and interview limits the generalisability of the results, this approach provides a new understanding into the effects of Covid-19 on car showroom atmospherics and customer behaviour. The case study and participant observation is effective in validating such findings and offer another point-of-view.

To better understand the implications of these results, future studies could address the customer point-of-view, as they are vital in providing an income for the business. Doing so would improve accuracy and application to the wider industry.

For the case study, realistic suggestions have been made to help balance the changes that have been made to the showroom. A less subjective approach to temperature control, with an automatic door installed could improve the relaxation of customers in the showroom. More research is needed to determine an ‘optimum’ temperature for the showroom. An outdoor café could maintain customer expectations of ‘added value’, whilst respecting Covid-19 guidelines. The ‘outdoor’ journey could be curated more to replicate that of the showroom pre-pandemic that re-enforced positive customer behaviour.

This exploratory research is unique in giving immediate insight into the effects of the Covid-19 pandemic on the car showroom atmosphere. It has created a rich knowledge baseline regarding how these changes impact customer behaviour utilising a plethora of sources, which further research can build upon.

85

Chapter 6: References 6.1 References (Dalziel & Pow, 2014) <http://www.dalziel-pow.com/wp-content/uploads/2014/07/Our-Perspective-onInfluencing-Shopper-Behaviour1.pdf> [Accessed 22 December 2020] Bacher, Natalie, “DIGITAL AUTO CUSTOMER JOURNEY - An Analysis Of The Impact Of Digitalization On The New Car Sales Process And Structure”, 2020 <https://doi.org/DOI: 10.13140/RG.2.2.13942.42560> Baker, Julie, A. Parasuraman, Dhruv Grewal, and Glenn B. Voss, “The Influence Of Multiple Store Environment Cues On Perceived Merchandise Value And Patronage Intentions”, Journal Of Marketing, 66 (2002), 120-141 <https:// doi.org/10.1509/jmkg.66.2.120.18470> Baker, Julie, A. Parasuraman, Dhruv Grewal, and Glenn B. Voss, “The Influence Of Multiple Store Environment Cues On Perceived Merchandise Value And Patronage Intentions”, Journal Of Marketing, 66 (2002), 120-141 <https:// doi.org/10.1509/jmkg.66.2.120.18470> Baker, Julie, A. Parasuraman, Dhruv Grewal, and Glenn B. Voss, “The Influence Of Multiple Store Environment Cues On Perceived Merchandise Value And Patronage Intentions”, Journal Of Marketing, 66 (2002), 120-141 <https:// doi.org/10.1509/jmkg.66.2.120.18470> Baker, Julie, “The Role Of The Environment In Marketing Services: The Consumer Perspective”, The Services Challenge: Integrating For Competitive Advantage, 1986, 79-84 Batchelor, David, Chromophobia, 2000, pp. 9-49 Berkhout., Constant, Assortment And Merchandising Strategy: Building A Retail Plan To Improve Shopper Experience (Palgrave Macmillan, Cham, 2019), p. 206 Berlyne, D. E, Conflict, Arousal, And Curiosity (New York: McGraw-Hill, 1960) Bitner, Mary Jo, “Servicescapes: The Impact Of Physical Surroundings On Customers And Employees”, Journal Of Marketing, 56 (1992), 57 <https://doi.org/10.2307/1252042> Cantista, Isabel, and Teresa Sádaba, Understanding Luxury Fashion (Fairchild Books, 2012) Cerrato, Herman, The Meaning Of Colours (Herman Cerrato, 2012) Dawson, S, Peter Bloch, and Nancy M. Ridgway, “Shopping Motives, Emotional States, And Retail Outcomes”, Journal Of Retailing, 66 (1990), 408-427 Donovan, Robert J., and John R. Rossiter, “Store Atmosphere: An Environmental Psychology Approach”, Journal Of Retailing, 58 (1982), 34-57 Eriksson, Elin, and Niklas Larsson, “A Multi-Sensory Brand Experience” (Linnaeus University, 2011) Gibson, James J, The Senses Considered As Perceptual Systems (Westport, Conn.: Greenwood Press, 1983) Grewal, Dhruv, Michael Levy, and V. Kumar, “Customer Experience Management In Retailing: An Organizing Framework”, Journal Of Retailing, 85 (2009), 1-14 <https://doi.org/10.1016/j.jretai.2009.01.001> Grossbart, Sanford L., Robert A. Mittelstaedt, William W. Curtis, and Robert D. Rogers, “Environmental Sensitivity And Shopping Behavior”, Journal Of Business Research, 3 (1975), 281-294 <https://doi.org/10.1016/01482963(75)90010-7> Hahn, Barbara, Technology In The Industrial Revolution, 2020 <https://www-cambridge-org.libproxy. ncl.ac.uk/core/books/technology-in-the-industrial-revolution/949B7F585E30055E0CF08828C2F50C0B> [Accessed 22 January 2021] 86

Jolly, Jasper, “UK Car Dealer Sales Rise As Covid Drives People From Public Transport”, The Guardian, 2020 <https://www.theguardian.com/business/2020/aug/20/uk-car-dealer-sales-rise-as-covid-drives-people-frompublic-transport> [Accessed 20 January 2021] Kaplan, Rachel, and Stephen Kaplan, The Experience Of Nature (Cambridge: Cambridge University Press, 1989) Kopec, Dak, Environmental Psychology For Design, 3rd edn (London: Fairchild Books, 2018), p. 1 Kotler, Phillip, “Atmospherics As A Marketing Tool”, Journal Of Retailing, 49 (1973), 48-64 <http://belzludovic. free.fr/nolwenn/Kotler%20-%20Atmospherics%20as%20a%20marketing%20tool%20%20(cit%C3%A9%20 171)%20-%201973.pdf> [Accessed 20 January 2021] Labrecque, Lauren I., Vanessa M. Patrick, and George R. Milne, “The Marketers’ Prismatic Palette: A Review Of Color Research And Future Directions”, Psychology & Marketing, 30 (2013), 187-202 <https://doi.org/10.1002/ mar.20597> Lemon, Katherine N., and Peter C. Verhoef, “Understanding Customer Experience Throughout The Customer Journey”, Journal Of Marketing, 80 (2016), 69-96 <https://doi.org/10.1509/jm.15.0420> Lemon, Katherine N., and Peter C. Verhoef, “Understanding Customer Experience Throughout The Customer Journey”, Journal Of Marketing, 80 (2016), 69-96 <https://doi.org/10.1509/jm.15.0420> Lindstrom, Martin, and Philip Kotler, Brand Sense ([Place of publication not identified]: Free Press, 2014), p.

164 Lindstrom, Martin, and Philip Kotler, Brand Sense ([Place of publication not identified]: Free Press, 2014) Madzharov, Adriana V., Lauren G. Block, and Maureen Morrin, “The Cool Scent Of Power: Effects Of Ambient Scent On Consumer Preferences And Choice Behavior”, Journal Of Marketing, 79 (2015), 83-96 <https://doi. org/10.1509/jm.13.0263> Mehrabian, Albert, and James Russell, An Approach To Environmental Psychology (The MIT Press, 1974) Milliman, Ronald E., “Using Background Music To Affect The Behavior Of Supermarket Shoppers”, Journal Of Marketing, 46 (1982), 86 <https://doi.org/10.2307/1251706> Möller, Jana, and Steffen Herm, “Shaping Retail Brand Personality Perceptions By Bodily Experiences”, Journal Of Retailing, 89 (2013), 438-446 <https://doi.org/10.1016/j.jretai.2013.05.004> Park, C. Whan, Andreas B. Eisingerich, Gratiana Pol, and Jason Whan Park, “The Role Of Brand Logos In Firm Performance”, Journal Of Business Research, 66 (2013), 180-187 <https://doi.org/10.1016/j.jbusres.2012.07.011> Pegler, Martin M, Visual Merchandising And Display (New York: Fairchild Publications, 2012), p. 333 Pozharliev, Rumen, Willem J.M.I. Verbeke, Jan W. Van Strien, and Richard P. Bagozzi, “Merely Being With You Increases My Attention To Luxury Products: Using EEG To Understand Consumers’ Emotional Experience With Luxury Branded Products”, Journal Of Marketing Research, 52 (2015), 546-558 <https://doi.org/10.1509/jmr.13.0560> Project Phoenix (Sytner Group, 2020), p. 1 Project Phoenix - A Quick Guide For Dealerships During Coronavirus (COVID-19) Pandemic (Sytner Group, 2020) Research, Foresight, “Research Reveals Dramatic Influence Of Dealerships On Automotive Brand Building And Vehicle Purchase”, Prnewswire.Com, 2010 <https://www.prnewswire.com/news-releases/research-revealsdramatic-influence-of-dealerships-on-automotive-brand-building-and-vehicle-purchase-93920004.html> [Accessed 12 November 2020] 87

Reynolds-McIlnay, Ryann, Maureen Morrin, and Jens Nordfält, “How Product–Environment Brightness Contrast And Product Disarray Impact Consumer Choice In Retail Environments”, Journal Of Retailing, 93 (2017), 266-282 <https://doi.org/10.1016/j.jretai.2017.03.003> Roggeveen, Anne L., Dhruv Grewal, and Elisa B. Schweiger, “The DAST Framework For Retail Atmospherics: The Impact Of In- And Out-Of-Store Retail Journey Touchpoints On The Customer Experience”, Journal Of Retailing, 96 (2020), 128-137 <https://doi.org/10.1016/j.jretai.2019.11.002> Roggeveen, Anne L., Dhruv Grewal, and Elisa B. Schweiger, “The DAST Framework For Retail Atmospherics: The Impact Of In- And Out-Of-Store Retail Journey Touchpoints On The Customer Experience”, Journal Of Retailing, 96 (2020), 128-137 <https://doi.org/10.1016/j.jretai.2019.11.002> Roschk, Holger, Sandra Maria Correia Loureiro, and Jan Breitsohl, “Calibrating 30 Years Of Experimental Research: A Meta-Analysis Of The Atmospheric Effects Of Music, Scent, And Color”, Journal Of Retailing, 93 (2017), 228-240 <https://doi.org/10.1016/j.jretai.2016.10.001> Sarantopoulos, Panagiotis, Aristeidis Theotokis, Katerina Pramatari, and Anne L. Roggeveen, “The Impact Of A Complement-Based Assortment Organization On Purchases”, Journal Of Marketing Research, 56 (2019), 459-478 <https://doi.org/10.1177/0022243718823698> Sharr, Adam, Architecture & Culture SHARR (Hoboken: Taylor and Francis, 2012), pp. 106-118 Sinha, Jayati, and Rajesh Bagchi, “Role Of Ambient Temperature In Influencing Willingness To Pay In Auctions And Negotiations”, Journal Of Marketing, 83 (2019), 121-138 <https://doi.org/10.1177/0022242919841595> Spence, Charles, Nancy M. Puccinelli, Dhruv Grewal, and Anne L. Roggeveen, “Store Atmospherics: A Multisensory Perspective”, Psychology & Marketing, 31 (2014), 472-488 <https://doi.org/10.1002/mar.20709> Van Den Bergh, Bram, Nico Heuvinck, Gaby A. C. Schellekens, and Iris Vermeir, “Altering Speed Of Locomotion”, Journal Of Consumer Research, 43 (2016), 407-428 <https://doi.org/10.1093/jcr/ucw031> Veith, Cristina, and Irina Dogaru, “Digital Work In The Context Of Covid 19”, Manager Journal, Faculty Of Business And Administration, University Of Bucharest, 31 (2020), 61-69 Verhoef, Peter C., Katherine N. Lemon, A. Parasuraman, Anne Roggeveen, Michael Tsiros, and Leonard A. Schlesinger, “Customer Experience Creation: Determinants, Dynamics And Management Strategies”, Journal Of Retailing, 85 (2009), 31-41 <https://doi.org/10.1016/j.jretai.2008.11.001> Vilnai-Yavetz, Iris, and Shaked Gilboa, “The Effect Of Servicescape Cleanliness On Customer Reactions”, Services Marketing Quarterly, 31 (2010), 213-234 <https://doi.org/10.1080/15332961003604386> Wapner, Seymour, “Transactions Of Persons-In-Environments: Some Critical Transitions”, Journal Of Environmental Psychology, 1 (1981), 223-239 <https://doi.org/10.1016/s0272-4944(81)80041-2> Westbrook, R. A., and W. C. Black, “A Motivation-Based Shopper Typology.”, Journal Of Retailing, 61 (1985), 78-103 Zhang, Xiaoling, Shibo Li, Raymond R. Burke, and Alex Leykin, “An Examination Of Social Influence On Shopper Behavior Using Video Tracking Data”, Journal Of Marketing, 78 (2014), 24-41 <https://doi.org/10.1509/ jm.12.0106> Zolkifly, Nur Hazwani, and Md. Nasarudin Hussin, “Digital Display Of Car Showroom: Proposing An EmotionalEnvironmental Conceptual Model”, Pertanika Journals - SOCIAL SCIENCES & HUMANITIES, 25 (2017), 49-58 Zolkifly, Nur Hazwani, and Shahrel Nizar Baharom, “Selling Cars Through Visual Merchandising: Proposing Emotional Design Approach”, Procedia Economics And Finance, 37 (2016), 412-417 <https://doi.org/10.1016/s22125671(16)30145-9> 88

Zwebner, Yonat, Leonard Lee, and Jacob Goldenberg, “The Temperature Premium: Warm Temperatures Increase Product Valuation”, Journal Of Consumer Psychology, 24 (2014), 251-259 https://doi.org/10.1016/j. jcps.2013.11.00

89

6.2 List of Figures Figure 1: Image from the Case Study showing Covid-19 changes and atmospheric conditions Author’s own from case study visit. (2020) [Photography] [taken 21st Nov. 2020].

Figure 2: Government campaign to remind public to wash their hands, wear a face mask and maintain social distancing Department of Health and Social Care, Hands. Face. Space., 2021 <https://www.youtube.com/ watch?v=jr09ByDYuq4> [Accessed 23 January 2021].

Figure 3: Diagrams showing research methods used.

Author’s own diagram. (2020) [Illustration] [produced 5th Jan. 2021] Figure 4: The ‘Mediterranean Village’ in the Metro Centre showing retail atmospherics used.

Author’s own image from MetroCentre. (2020) [Photography] [taken 21st Jan. 2020].

Figure 5: Red and green lighting on escalators - Gibson’s Affordances. User has to take the cue that green means okay and red means stop.

Author’s own image from MetroCentre. (2020) [Photography] [taken 21st Jan. 2020].

Figure 6: Attention Restoration Theory. My own image showing nature. How do you feel when you see this image?

Author’s own image. (2020) [Photography] [taken 22nd Jun. 2019].

Figure 7: Image showing an example of a ‘servicescape’ and showing ‘atmospherics’. Macaron shop in Paris uses unique lighting and displays to sell products.

Author’s own image in Paris. (2020) [Photography] [taken 21st August. 2019].

Figure 8: Starbucks cafe servicescape/atmosphere - physical part of the ‘customer experience’.

Retail Design Blog <https://in.pinterest.com/pin/703756162871941/> [Accessed 26 January 2021].

Figure 9: ‘influencer’ collaboration with Starbucks - forms part of the ‘customer experience’ when on social media.

Vanity Island Magazine, Molly Mae Is The First Influencer To Collab With Starbucks, 2021 <https://www. vanityislandmagazine.com/blogs/influencernews/molly-mae-starbucks-collaboration> [Accessed 26 January 2021].

Figure 10: Starbucks tax scandal in the media. Another form of brand connection with customer. Could impact opinion of the brand, therefore behaviour towards the brand.

The Ecoonomist, Corporate Taxation - Wake Up And Smell The Coffee <https://www.economist.com/ business/2012/12/15/wake-up-and-smell-the-coffee> [Accessed 26 January 2021].

Figure 11: Diagram showing warmer temperatures increase product valuations from customers.

Author’s own diagram. (2020) [Illustration] [produced 5th Jan. 2021] Figure 12: Diagram showing the effect of floor markers on customer behaviour through the shop. The more markers, the quicker a customer will travel through a walkway.

Author’s own diagram. (2020) [Illustration] [produced 5th Jan. 2021] Figure 13: Image of Arabica Coffee Flagship store in Dubai. Uses white background to enhance product and 90

give a clean and organised aesthetic.

Author’s own image in Dubai. (2019) [Photography] [taken 12th Feb. 2018].

Figure 14: Image of the Apple shop in the MetroCentre. Uses semi-reflective materials, avoiding shadows, giving a ‘clean’ aesthetic.

Author’s own image from MetroCentre. (2020) [Photography] [taken 21st Jan. 2020].

Figure 15: Diagram showing how ‘big-box’ stores should create a customer adventure through the store.

Author’s own diagram. (2020) [Illustration] [produced 5th Jan. 2021] Figure 16: Diagram showing the change in spatial requirements during the pandemic.

Author’s own diagram. (2020) [Illustration] [produced 5th Jan. 2021] Figure 17: Example car showroom plan showing changes made during Covid-19.

Project Phoenix (Sytner Group, 2020), [Illustration] [Accessed 15th Dec. 2020].

Figure 18: Case Study Collage Pre-Pandemic.

Author’s own collage. (2020) [Illustration] [produced 3rd Jan. 2021] Figure 19: Case Study Collage During the Pandemic.

Author’s own collage. (2020) [Illustration] [produced 3rd Jan. 2021] Figure 20: Collage showing customer journey pre-pandemic.

Author’s own collage. (2020) [Illustration] [produced 3rd Jan. 2021] Figure 21: Diagram showing customer movement through the case study pre-pandemic.

Author’s own diagram. (2020) [Illustration] [produced 3rd Jan. 2021] Figure 22: Collage showing customer journey during the pandemic.

Author’s own collage. (2020) [Illustration] [produced 3rd Jan. 2021] Figure 23: Diagram showing customer movement through the case study during the pandemic.

Author’s own diagram. (2020) [Illustration] [produced 3rd Jan. 2021] Figure 24: Public realm pre-pandemic.

Author’s own diagram. (2020) [Illustration] [produced 3rd Jan. 2021] Figure 25: Spatial use pre-pandemic.

Author’s own diagram. (2020) [Illustration] [produced 3rd Jan. 2021] Figure 26: Public realm during the pandemic.

Author’s own diagram. (2020) [Illustration] [produced 3rd Jan. 2021] Figure 27: Spatial use during the pandemic.

Author’s own diagram. (2020) [Illustration] [produced 3rd Jan. 2021] Figure 28: Questionnaire Result - Atmospheric Condition.

Author’s own graph produced from the questionnaire data. (2021) [Illustration] [produced 10th Jan. 2021} Figure 29: Questionnaire Result - Atmospheric Condition Comment.

Figure 30: Interview - Atmospheric Condition Comment.

91

Figure 31: Case Study - Image showing atmospheric condition of showroom.

Author’s own from case study visit. (2020) [Photography] [taken 21st Nov. 2020].

Figure 32: Questionnaire Result - Temperature.

Author’s own graph produced from the questionnaire data. (2021) [Illustration] [produced 10th Jan. 2021} Figure 33: Questionnaire Result - Temperature Comment.

Figure 34: Interview - Temperature Comment.

Figure 35: Case Study - Image showing the one-way system exit door open, impacting temperature.

Author’s own from case study visit. (2020) [Photography] [taken 21st Nov. 2020].

Figure 36: Questionnaire Result - Background Music.

Author’s own graph produced from the questionnaire data. (2021) [Illustration] [produced 10th Jan. 2021} Figure 37: Questionnaire Result - Background Music Comment.

Figure 38: Questionnaire Result - Background Music Comment.

Figure 39: Interview - Background Music Comment.

Figure 40: Questionnaire Result - Cleanliness.

Author’s own graph produced from the questionnaire data. (2021) [Illustration] [produced 10th Jan. 2021} Figure 41: Questionnaire Result - Cleanliness Comment.

Figure 42: Questionnaire Result - Cleanliness Comment.

Figure 43: Interview - Cleanliness Comment.

Figure 44: Case Study - Image showing customer tables with extra cleaning equipment and perspex screens during Covid-19.

Author’s own from case study visit. (2020) [Photography] [taken 21st Nov. 2020].

Figure 45: Interview - Scent Comment.

Figure 46: Interview - Uniform Comment.

Figure 47: Case Study - Image showing Staff wearing uniform.

Author’s own from case study visit. (2020) [Photography] [taken 21st Nov. 2020].

Figure 48: Questionnaire Result - Cafe.

Author’s own graph produced from the questionnaire data. (2021) [Illustration] [produced 10th Jan. 2021} Figure 49: Questionnaire Result - Cafe Comment.

Figure 50: Interview - Cafe Comment.

Figure 51: Case Study - Image showing what was the cafe area, now closed during Covid-19.

Author’s own from case study visit. (2020) [Photography] [taken 21st Nov. 2020].

Figure 52: Questionnaire Result - Sales Offices..

Author’s own graph produced from the questionnaire data. (2021) [Illustration] [produced 10th Jan. 2021} Figure 53: Questionnaire Result - Sales Offices Comment.

Figure 54: Questionnaire Result - Sales Offices Comment.

92

Figure 55: Questionnaire Result - Sales Offices Comment.

Figure 56: Case Study - Image showing sales offices during the pandemic where the used car display used to be pre-pandemic.

Author’s own from case study visit. (2020) [Photography] [taken 21st Nov. 2020].

Figure 57-59: Interview - Other Design Comments.

Figure 60: Case Study - Images comparing the AMG and Smart ‘zones’.

Author’s own from case study visit. (2020) [Photography] [taken 21st Nov. 2020].

Figure 61: Case Study - Images comparing number of cars on display during the pandemic, taken a month apart.

Author’s own from case study visit. (2020) [Photography] [taken 21st Dec. 2020].

Figure 62: Questionnaire Result - Brand Reputation..

Author’s own graph produced from the questionnaire data. (2021) [Illustration] [produced 10th Jan. 2021} Figure 63: Questionnaire Result - Brand Reputation Comment.

Figure 64: Questionnaire Result - Brand Reputation Comment.

Figure 65: Interview - Brand Reputation Comment.

Figure 66: Interview - Brand Reputation Comment.

Figure 67: Case Study - Images showing ‘lifestyle’ imagery above used car area.

Author’s own from case study visit. (2020) [Photography] [taken 21st Dec. 2020].

Figure 68: Interview - Other Social Comment.

Figure 69: Interview - Other Social Comment.

Figure 70: Case Study - Images showing graphic in handover bay.

Author’s own from case study visit. (2020) [Photography] [taken 21st Nov. 2020].

Figure 71: Questionnaire Result - Covid-19 Changes Overall.

Author’s own graph produced from the questionnaire data. (2021) [Illustration] [produced 10th Jan. 2021} Figure 72: Questionnaire Result - Covid-19 Changes Overall Comment.

Figure 73: Questionnaire Result - Covid-19 Changes Overall Comment.

Figure 74: Interview - Covid-19 Changes Overall Comment.

Figure 75: Interview - Covid-19 Changes Overall Comment.

Figure 76: Case Study - Images showing the entrace with added signage and one way system.

Author’s own from case study visit. (2020) [Photography] [taken 21st Nov. 2020].

Figure 78: Questionnaire Result - Physical Product.

Author’s own graph produced from the questionnaire data. (2021) [Illustration] [produced 10th Jan. 2021} Figure 79: Questionnaire Result - Pysical Product Comment.

Figure 80: Interview - Physical Product Comment.

Figure 81: Case Study - Image showing tactile material options when purchasing online. Not available online.

93

Author’s own from case study visit. (2020) [Photography] [taken 21st Nov. 2020].

Figure 82: Questionnaire Result - Spatial Arrangements.

Author’s own graph produced from the questionnaire data. (2021) [Illustration] [produced 10th Jan. 2021} Figure 83: Questionnaire Result - Spatial Arrangements Comment.

Figure 84: Interview - Spatial Arrangements Comment.

Figure 85: Questionnaire Result - Spatial Arrangements Comment.

Figure 86: Questionnaire Result - Spatial Arrangements Comment.

Figure 87: Interview - Covid-19 Changes Other Comment.

Figure 88: Interview - Covid-19 Changes Other Comment.

Figure 89: Case Study - Image showing example of the ‘niceties’ kept.

Author’s own from case study visit. (2020) [Photography] [taken 21st Nov. 2020].

Figure 90: Email showing financial results of case study during the pandemic. £15.8M profit.

Nick Robinson, Emily Ducker to , “2020 Financial Results”, 2021.

Figure 91: Sketches showing the key findings.

Author’s own sketches. (2020) [Illustration] [produced 19th Jan. 2021] Figure 92: Image from the case study showing open door and expansive view. Could help mentally recharge customers.

Author’s own from case study visit. (2020) [Photography] [taken 4th Jan. 2021].

Figure 93: Image from the case study showing the no exit signs on the back of the customer entrance. The customer has to ignore the ’automatic door’ sign and use their own knowledge to understand the door is no longer an exit and act accordingly.

Author’s own from case study visit. (2020) [Photography] [taken 21st Nov. 2020].

Figure 94: Close-up of the colours seen in the case study, both acting as neutral backgrounds to the product and signage.

Author’s own from case study visit. (2020) [Photography] [taken 4th Jan. 2021].

Figure 95: Image from the case study showing organised space. One-way system and space around cars looks clean and orderly. The showroom also has a modern aesthetic.

Author’s own from case study visit. (2020) [Photography] [taken 21st Nov. 2020].

Figure 96: Case study site plan highlighting where takeaway cafe could go.

Author’s own image. (2020) [Illustration] [produced 19th Jan. 2021] Figure 97: Case study sketch/collage of what the drive thru cafe to go could look like.

Author’s own sketch/collage produced on Photoshop. (2020) [Illustration] [produced 19th Jan. 2021] Figure 98: Case study proposed customer journey collage. ‘Added value’ experienced during the pandemic.

Author’s own sketch/collage produced on Photoshop. (2020) [Illustration] [produced 19th Jan. 2021]

94

6.3 Appendix 6.3.1 Appendix 1 – Questionnaire The following questions were distributed to the sales executives at Mercedes-Benz of Newcastle: 1) 2) 3) 4) 5) 6) 7) 8)

What impact does the atmospheric condition of the showroom have on consumer behaviour?

What impact does a comfortable temperature in the showroom have on customer behaviour?

What impact does the presence of background music have on customer behaviour?

What impact does good cleanliness of the showroom have on customer behaviour?

What impact have the changes made during the Covid-19 pandemic had on customer behaviour?

What impact does having an open café area have on customer behaviour?

What impact does a prestige brand reputation have on the customer behaviour in the showroom?

What impact does having the sales offices hidden from view within the showroom have on customer behaviour?

9) What impact does physically seeing/feeling the car have on customer behaviour?

10) What impact would retaining spatial arrangements made during the pandemic have on customer behaviour, even after the pandemic?

95

6.3.2 Appendix 2 – Interview Transcription Interview with the Managing Director at Mercedes-Benz of Newcastle Car Showroom Design (Questions 1-4) Interviewer: With car showroom design, which architect does Sytner Mercedes-Benz use and is it the same for the whole Sytner group?

Participant:

Yeah, so Sytner do use the same architect for their projects … but that has changed over the years so the company we are currently using is a company called Taylor Design... but as you will see when you collect these plans, back in 2013 we were using a company called building design group by the look of it, so yes its more who Sytner are comfortable with as opposed to brand led on the architect side of things.

Interviewer: Who chose the location of Newcastle Mercedes-Benz?

Participant: My understanding, albeit this has been told to me third hand, was that when Mercedes-Benz historically back sort of a good 20+ years ago, they used to own all of the businesses and then it became franchised. This particular site along with our Sunderland site were chosen in the locations they were chosen in, i.e., not on the main road, a little bit hidden away, because the brands perspective at the time was they wanted to be understated we don’t wanna be roadside. I think if they had their time again, we absolutely would be roadside.

Interviewer: I quite like that its up on the hill, I think it makes it almost look like a bit of a castle Participant:

It does, it does, but its challenging at times though Emily because some people, people who live in Newcastle, don’t realise were here. Very often they will either look up from Scotswood Road or they’ll be on the industrial estate on the bottom where they can see us cos it is a wow factor. isn’t it?

When you look at the top of this hill, when the lights are on on the night its just BOOM, it is a wow factor. But it can work against you as well from a location, people go oo where is the Mercedes in Newcastle. people are just unsure of the location in Newcastle they’re just unsure.

Interviewer: who made the design decisions for Mercedes-Benz of Newcastle, as in the paint colour, layout, and materials?

Participant: So, this is led partly or mainly by corporate image that Mercedes-Benz have in place. They’re undergoing a transition of image so if you were to go into Newcastle, we underwent refurbishment in 2014, so we were on the previous corporate image, so we’ve got the walnut, is probably the biggest way you differentiate. The one prior to that was like a light pine type colour, which is what we moved from to this colour, so you’ll find front of house with a walnut finish, back of house there are still some areas where they have the lighter colour doors ah from when they were first built. Now our Carlisle business, which I’d suggest actually, you may want to go and have a little visit cos you will see the difference in the image they’ve gone to an oak and leather and very light surfaces. so that’s the new image which they have called MAR2020, so eventually, all businesses will make the transition across to that sort of palette.

Interviewer: Why does the dealership include aftersales departments alongside sales?

Participant:

96

Erm, the main reason now is arguably the most profitable side of the business now, so from a profitability side of things the business wouldn’t be able to function off car sales alone, wouldn’t be a viable product. From a customer perspective it is absolutely one stop shop so you know purchase and repair whether that be mechanically or bodywork. It absorbs the overhead, so without it the business wouldn’t be able to succeed.

Ambience (Questions 5-12) Interviewer: Alright, so moving onto ambience, I’ve got who controls the background music in the showroom?

Participant:

So, its setup centrally, there is no reason for playing the tracks actually, but its more from a licensing perspective, were not running adverts etc. and obviously we have licencing fees to pay for. Just to move onto the question 6, type of music played, there is no plan to that, it is just purely a licensing arrangement.

Interviewer: So how is the temperature of the showroom controlled if it is at all?

Participant:

It isn’t it is as simple as it gets cold and we turn it on, it gets warm and we turn it off. There is some timers on there. Its a very big vast area to warm to heat and in contrast in the summer it does get very warm without the heating on cos its almost a green house in its design. Currently whilst we are working through these Covid challenges. We are running a one way in, one way out system. which is meant that we have head to mean that we leave one of the doors open at all times. Which is more that we would like. Too warm and customers you know dislike it because it becomes too intense and actually you want to get out for some air and too cold and obviously, they’re not comfortable, so we try and straighten the balance, but it is as straightforward as someone from the floor will say its too warm can we turn the heating off and visa versa.

Interviewer: And is there sort of any reference to air quality at all?

Participant:

No, no, were not, its not something that we log certainly in the showroom environment, in the office environment, we have regular maintenance in the air conditioning units. We do that every three months. So that’s something that we are all over, especially under the current pandemic, but in the actual showroom environment, no there’s no filtration system in there. It is an open the showroom doors and the air will come and go.

Interviewer: Yeah, its quite a big place isn’t it so Participant:

It is

Interviewer: And does the dealership have any interventions to control the scent of the showroom?

Participant:

Absolutely not, but this is something that I have recently, I say recently, in the last 24 months, its become more prevalent to me and I’ve thought quite a bit about it. I’ve actually I’m in contact with somebody via linked in at the moment just to look at what we can do from a scent perspective because I’m a great believer, and you’ll know Emily, from going into retail shops, certainly clothes shops, there are certain ones that you associate a scent to, Abercrombie and Hollister to name a few, you know for me the more you look into that side, you do recognise that there is a link between sales and scent, so that is something I wish to pursue in the future, I am very aware that that is an opportunity for us.

Interviewer: Okay, and how does Mercedes-Benz of Newcastle maintain the cleanliness of the showrooms?

Participant:

So its twofold at the moment, we employ a subcontract cleaning company who come in and they have a daily weekly monthly task list to go through, so they will come in and do that for us. alongside the pandemic we are covering enhanced cleaning which involves the office side and sales execs side of the showroom on a rota basis which four times a day they will include a clean of their areas. From the customer side, if a customer is engaged at a chair or a desk, once the customer leaves, that gets re-sanitised and cleaned so we’ve got two types of cleaning running at present.

Interviewer: Why do customer facing staff wear a uniform?

Participant:

Consistency and recognition would be the answer to that. Obviously, the customer can quite clearly see who is a member of the team and it is controlling what people wear as well. You know what you and I think looks good, some others may not see that as standard. It allows you to set that standard within the team.

97

Interviewer: And what impact do you think the expansive view has on customer behaviour if any?

Participant:

Just elaborate what you mean by expansive view

Interviewer: So mainly because the full front façade of the building is glass. I know personally from when I’ve been in there you can see the angel of the north you can see it covers everything and whether or not you think that has an impact with how customers feel in the showroom?

Participant:

I think there’s two ways to look on that really, I do speak to customers and colleagues from other businesses that visit as well that are just like wow it is like a picture frame you look at that every single panel you would frame it and put it on a wall. you would frame it and put it on a wall because there are some stunning views it usually blows people away, but then the other side of it Emily you do have people who that does intimidate because we sit upon this hill and because it is a very imposing showroom, it can also have the opposite effect and some think oo no I don’t want to go in there.

We have got to work really hard especially the host team to break down those barriers with a big warm smile and welcome to the business. as much as it is a fabulous location having the experience of running a much smaller site, without the views, looking at a DFS carpark, actually the customers without a doubt were not intimidated going into Sunderland, whereas there is certainly that edge to this business that it brings being imposing shall we say

Function (Questions 13-22) Interviewer: Moving onto function, how many cars are there in the dealership at any given moment?

Participant:

Is this cars visiting or cars in the showroom

Interviewer: Cars in the showroom on display Participant:

Currently we have only 12 in total, ordinarily pre pandemic we had pushing 25 to 30 cars in our showroom, so we’ve had to really reduce the size, couple of reasons, we’ve implemented socially distanced waiting area for service, we’re obviously offering appointment only for sales customers. or if they do turn up on spec, if somebody’s free then obviously they are able to be let into the showroom area, were absolutely trying to demonstrate the product outside in the fresh air and the other area of the business that we normally put a number of cars into is the AMG showroom, unfortunately again just to prevent footfall and touchpoints from customers we’ve removed the cars out of the showroom, so we can almost putting customers through a funnel, which sounds awful, but its the best way we can control them, but under the current circumstances we have to control that customer journey whilst they’re in the building because otherwise we would most certainly be exposing our team and our customers to more risk which we obviously don’t want to do

Interviewer: and is there a reason the AMG cars have been reduced, I mean obviously if you have reduced the rest of them as well Participant:

its more the area we have reduced, in the showroom display area as I would describe it now, the area in front of the lift that area to the right of reception as you’re looking out of the door, you still have AMG product in that, its just the layout of the showroom, we’ve chosen some areas to close down, we are also under a registration block on some cars at the moment, we are trying to re-align some emissions for this year, so what we’ve found anyway is that there isn’t many AMG products we are able to sell and deliver immediately they would be delivered in January, so there has been a little bit of an impact with that, albeit that hasn’t changed the layout of the showroom really, we just looked at it and decided what would flow best

Interviewer: So are there any to be included or excluded Participant:

(answered in previous question)

Interviewer: is there a specific order or layout for guidance for layout of display?

98

Participant:

Yes, we obviously have our zone areas, main showroom, smart area, and AMG area and ordinarily, pre-pandemic, post-pandemic, that’s what we would be going back to

Interviewer: There are different zones within the dealership, why?

Participant:

Again just to demonstrate that stock, if someone’s coming in there’s quite a difference in AMG and smart, so if somebody’s coming in to look at a smart car or look at an AMG performance vehicle, its quite clear to see where it is and also there is a different feel in those areas, in smart its a lot fresher and lighter in keeping with the brand, in AMG its a lot more darker and it has that racing feel to it

Interviewer: Its more dramatic isn’t it Participant:

Absolutely, great word

Interviewer: So, who initiated the installation of the cafe area?

Participant:

Pre our refurbishment, we had a cafe in the upstairs here, on the mezzanine and it almost turned into a greasy spoon type cafe and it worked and certainly was from my understanding of the business then it was a pull for customers and certainly worked for staff, but it wasn’t really the image of Mercedes-Benz, as a group Sytner group were real advocates of putting in a barista style cafes into their waiting areas and when the refurbishment came that’s exactly what they did, so they out it down to the drum area. I always recognise it as the heartbeat of the business that is how I would describe it. nobody else has described it that way but that is what I see obviously currently that area is closed for a couple of reasons, firstly, again, because it is another risk but also if we started serving teas and coffees, were basically allowing them (customers) to drop their masks, as and when needed, but also we’re in a tier 3, so when you look outside and you try and go to Starbucks, you cant go to Starbucks and have a cup of coffee can you, its takeaway only, so there is a couple of reasons why that’s closed but certainly the cafe area it was Sytner before it was Mercedes-Benz in their forward thinking.

Interviewer: So I suppose what impact has the cafe, you’ve touched on the customer a little bit, but with the employees as well a bit maybe Participant:

So the cafe shouldn’t be used by employees, but it does happen and I think we would be foolish to think it didn’t happen but certainly for the customers, we do have a core of customers who regularly come in, you know regularly come in for a coffee, when we had more cakes than Costa we see them as regular visitors, but we see that as buying into the brand as well and we wanted that to be part of their lifestyle you know we were delivering a great service out of there, you know the host team have done an amazing job with the product and offering. customers regularly wrote about it in their customer service questionnaires or off their own back google reviews etc. It was definitely recognised and set us apart from some other manufactures who are still putting 20 p expecting customers to out 20 p into a coffee machine to get a cup of coffee. It was Mercedes-Benz standard so to speak and the expectation from customers was always there

Interviewer: Just to clarify then it is always free for customers?

Participant: Absolutely.

Interviewer: So, there are images of sports cars and scenes around the dealership, why?

Participant:

Purely lifestyle, you know its that they are buying into a brand and actually they’re sat deciding, they can resonate, you know the family playing sport with the car in the background they can visualise themselves with that almost like I want to be part of this. The reason we have gone more lifestyle pictures than cars is because cars age, what is a new model today in two years time can be a past model and that’s always been the challenge and that’s always aged businesses. Again, it is Sytner group, not Mercedes-Benz. Sytner groups take on it is that they do more lifestyle to manage the change, because they are quite costly, especially some of the images on the walls

Interviewer: I’ve never thought about that before. And how useful is the external pitch for customers and 99

employees?

Participant:

Its fantastic, its one area where the customers know our approved stock is okay, wee do put some new cars on display as well, great for when the business is closed and I regularly see on the cameras at all hours, believe it or not, middle of the night at times when customers would be wandering round the pitch. Not to steal wheels, actually looking. It becomes an extension of the sales team from a team colleague perspective, knowing that that’s the area where the approved used cars actually sit, where the display is reduces or increases efficiencies in down time if they’re looking for a particular car.

Interviewer: And who installs and changes the signage in the showroom?

Participant:

Signage is that the vehicles so the price point for the vehicles that are in or the images on the walls etc.?

Interviewer: Pretty much everything. I’m imagining there will be different people for everything, but you know how when you first walk in through to reception there is a sign saying service area this way or toilets this way Participant:

Yes, so we use, there’s a company called creative image, guy called Chris Lucas is our contact and he works quite closely with group property so he understands what Sytner want and its almost, I wouldn’t say its an agreed image library, but he gets what Sytner is trying to achieve. So, he is always on the right page if Sytner need a new image when we put up the new handover bay, that’s the company that we go to to get a new image for the wall, they’re involved in that. So, we know if we want to add at a later date that’s who we should realistically be going through. We don’t have to, we can do our own local thing, but we have got to be in keeping with everything that’s there, from a vehicle in the showroom, there’s templates that we get from Mercedes-Benz to put our pricing and specification onto. we use the templates and then its inputted by the sales team or star expert to do the changes for each vehicle and the emissions sheets. The livery for vehicles so if we have got a motability offer or on a particular car, we do that through our Mercedes-Benz division, so Sytner divisions marketing team and we just order through them or we share what we’d like, and they ensure that it meets with our corporate image and they will sign it off from there.

Interviewer: How is the external pitch arranged or displayed?

Participant:

Its business choice so we have tried it in all sorts of shapes, we’ve done diagonal, herringbone, straight, facing each other, opposites and I think the current setup is certainly the better for fitting the most vehicles onto the pitch. Wave got the team, basically the sales team who make sure it is lined up properly. Then we have a wonderful sales team which is headed up by Michael who ensure they are valeted to perfection and they’ve got the right stickers on. we do a layout that again is dealership, as opposed to being told we need to do it, but we’ve got a layout to give uniformity to each car and yes its just kept on top of. If vehicles sell, they put a sold sign on and then it comes off and moves to the sold pitch. Its just a conveyor belt of stock and selling and moving on

Social (Questions 23-25) Interviewer: Do you think the customers behaviour in the showroom can influence other customers?

Participant:

100

Without a doubt, if we’ve just dealt with a disgruntled customer, service probably remains more prevalent. In sales, customers are spread out by a considerable amount. in sales its a very positive purchase isn’t it. once they have overcome the initial concerns of what I’m buying a car I’ve got to deal with a salesman, after that pint once the rapport is built, it is very pleasurable. also, in service it can be a lot more challenging because it is what we describe as a distressed purchase, you know if somebody needs brakes or tyres, that’s really money you don’t want to be spending. and I’m in that camp honestly, if something goes wrong its 9 times out of 10 unless its warranty covered its going to hit them in the pocket you do get a lot more distressed conversations from there. And there is times, especially with the layout as wonderful it is (pre and post COVID-19) it does give an intimacy in that area where the seating is and the mood lighting and the cafe area. but what it doesn’t give is privacy so if someone isn’t happy and they’re vocal about it it can spread to another customer and

there has been occasions where you’ve either got another disgruntled customer sat not far away and its like yeah yeah and they’re joining in or alternatively we’ve had customers say oh no this is a great business and actually really really stuck up for the business so its a delicate balance which thankfully doesn’t happen often but it can get interesting Interviewer: And do you think that the showroom, how useful do you think the showroom is in impacting customer behaviour?

Participant:

I think its really positive when things are going smoothly, is very relaxed and its very calm that central cafe area without a doubt works and that rapport building from the hosts and the relaxation that it brings, its all designed to make customers feel comfortable, enjoyable, and ultimately spend whether that’s with workshop or sales and it does have the desired effect.

Interviewer: And do you think that the environment affects employee behaviour? How/Why? I just mean the showroom by environment.

Participant:

Just the showroom environment - I think it does because they’re always on show. Its very strange for the sales team at now because we’ve obviously moved what was a hybrid used car showroom has now become the seating area for the sales team, just so we can socially distance them and keep them all together you know but the team are very conscious that actually they are always on show and customers will come in and again as we discussed earlier in the call there can be intimidated and actually if they see a sales executive head down ignoring them, but they’re not they’re trying to do work, that can actually go against people and certainly act as a first impression that first impression that you don’t want so it can affect it if you are sitting observing a sales executive certainly before the changes to the showroom as we see now, they’d be working but a bit like a meerkat looking around, but I think we have made a shift with that and with the host teams, we have a fabulous host team and it is their role in order to engage with the customer initially and them get a sales exec involved as and when needed. I also think removal of the telephone system has really helped this business. Its been something that I have been an advocate for for years and the pandemic its actually accelerated that as a real positive for the business so its given people a lot more time and has taken away that stress of the phone ringing. Emily you will know yourself that the host team when engaged with a customer and the phones ringing off the hook, it builds blood pressure and you need to get to that but not leave someone and not be rude, so that has helped as well with behaviour.

Other (Questions 26-28) Interviewer: Do you think the showroom is representative of the brand?

Participant:

I do, I do I think even in this current circumstance with COVID-19, the place looks really sharp. It rocks the yellow and black tape better than most places and actually its going to be quite bizarre when we pick up the tape. Yes, its classy and the fact that it is so large and just got the beauty to it, it helps. its such a beautiful showroom, it without a doubt represents the brand.

Interviewer: What do you think about Mercedes-Benz selling cars online?

Participant:

Its without a doubt part of the future and its certainly the strategy we accelerated by pandemic but you will have seen in the press the brand have really pushed online showroom for used cars and new cars. These days, Emily, people are very price conscious and will make their buying decisions online that tends to be the case. I do believe without a doubt there is a need for a showroom because of the products being sold people do need to touch feel view colours etc. and they do want to speak to individuals. people buy from people as the saying goes. but we’ve made it very easy to buy online now. Our best price is our online price emulated in the showroom and that’s given us quite a joinedup pricing strategy across the division and obviously Mercedes-Benz as well. Its been accelerated, and we get quite a lot of leads into the business that way. its about 40 percent from online enquiries now come into the business that may result in a visit where the enquiry starts off.

Interviewer: That’s quite high! You’ve hinted that there is a need for the showroom. Would Mercedes-Benz consider a shift to online only sales?

101

Participant:

I don’t think we will ever only be online only. But what you can do now with Mercedes and the manufacturer is you can buy a vehicle, be propped of finance, do your finance docs, have the car delivered to you without visiting the showroom, there’s no need for it so we are geared up for it. But we do find, whether or not that will change over the years, but the consumer demand there is some that will do that but then there is a lot will take it. We are certainly working in a hybrid at the moment.

Covid-19 Changes (Questions 29-41) Interviewer: Who makes the decisions regarding changes to the showroom during the Covid-19 pandemic?

Participant:

So, I was one of to head of businesses for Sytner group who sat on a panel for project phoenix, so I was heavily involved in it but that was more through being requested to sit on the panel from a normal HOB in the showroom, you’ll receive the guidance from management regarding project phoenix. Actually, you can view project phoenix through the colleague hub if you want to see what’s on there. so there was a guidance document issued which formed the basis of our document when the government then changed the criteria to ensure every business had a risk assessment ours became project phoenix, but there was a lot of guidance in there regarding one way systems and ensuring all the vehicles in the showroom were locked at all times and sanitised and making sure any customer that gets into a vehicle gets re-sanitised, use of hangers or some form of description to say this vehicle is ready and has been sanitised for a customer or colleague to get into it. so yes, I was involved but it was certainly guidance issued as opposed to non negotiables and then that became a risk assessment and as we know risk assessments are non negotiable so it was a group of 8 of us who sat on the panel. two HOBs two divisional managing directors, sue smith who heads up health and safety, Nigel Mills who heads up group property and health and safety from a director level, we had a HR manager and somebody from IT and the other person was new car divisional role from another division.

Interviewer: Quite a mix then wasn’t there Participant:

But I think that demonstrates the approach, there wasn’t somebody sitting in an ivory tower saying this is what one needs to do, it was more of a collaboration from the thick end so the HOBS, and across the business saying would that work and then obviously HR keeps everyone right so

Interviewer: Did management consider the effects such changes would have on the atmosphere of the showroom when making decisions?

Participant:

Yes it was definitely in their minds, health and safety came first, our customers and colleagues were without a doubt our top priority, but ultimately as well Emily we are here to sell and that definitely tried to make it as welcoming an environment as we could ensuring that we didn’t breach any of the government expectations and also kept the business COVID-19 secure. Hence why we have tried to make it as soft as we can, and you know I mentioned before all these stickers and black tape, we tend to rock the look but we didn’t want it to be over kill but we wanted it to be clear, and I think we got that balance quite right, we maintained the flowers and some niceties and normalities, as we call them, but the whole world changed and suddenly everything felt colder as a result of it. Were so tactile, certainly up North, were really tactile and were engaging with customers with one of these on (masks) really sort of the crow’s feet because you’re trying to demonstrate positive body language and a smile when people can’t see it so were very conscious of it but safety did prevail.

Interviewer: How do you think the changes that have been made affected customer behaviour?

Participant:

102

It was almost a herd behaviour that we seen, if you remember lockdown one, we were open for limited customer interaction through frontline, from the workshops we had six people in total working so we were engaging albeit through challenging circumstances, but actually when we opened up the showroom again, customers had already been institutionalised, you know they had been in every supermarket. its amazing, if you put a sticker on the floor people stand on it now it was almost the job had been done for us. We were able to take quite a lot from how not to do it and how to do it because people in some sectors had gone before us but 99 percent of customers were already

conditioned which was really good.

Interviewer: Who executed the changes in the dealership?

Participant:

Yeah so we had fun, it was what we made it. We did. Myself, Deanne, Olivia, Shaun, Pav, Alex and David, other that David and Alex, the others weren’t furloughed so we worked all the way through.

We worked out as a team where to put things. We obviously has the guidance document and project phoenix and the knowledge there and then we just did what worked for us and yeah it was good fun getting the furniture moved and getting desks from different places and there was times when it didn’t work Emily but we just revisited it and adapted as we brought more people back we had to shuffle it around again to make sure we were updating the spaces but yes it was executed by us, there wasn’t a team that came in to do it unfortunately.

Interviewer: Do you think that the changes have affected employee behaviour?

Participant:

Yes definitely, similar to what I said about customers, there’s certainly our team when they came back from lockdown one, they were certainly different in their approach. They understood distancing we’ve had to deal with a bit of complacency, that always creeps in and especially we went through a period of time where no one seemed to know anyone that had the virus, so again it was almost a its happening around us, its not happening in here so there’s certainly been some carrot and some stick conversations around it so rewarding great behaviour but also having conversations when people aren’t doing what they should be doing I mean ultimately whenever I’ve sat opposite somebody who hasn’t, its always been a positive conversation because you know my call and they need to understand is to keep them safe and to keep myself and my family safe so you keep my family safe and ill keep my family safe and once it resonates they understand that but its the complacency and nobody genuinely wants to feel as though they have done something wrong, its just the guards go down. We had an incident in the workshop where somebody’s wife had symptoms they went home and both returned a positive, he wasn’t symptomatic and again there was open and honest conversations that ensured after he had gone home he was very clear that another technician had been within two meters with no mask, that unfortunately that individual had to go home and had to isolate for fourteen days and that’s not a nice conversation with their family when they say well actually I’m on statutory sick pay while I do it because I didn’t follow the rules that were in place.

That helped actually Emily, because that became real for people, but we’ve never (inaudible). From a business side with 130 employees for us to have had 4 positive cases has been fantastic so long may that continue and we can get to the other side of it and everyone is vaccinated and we pick up the stickers off the floor and smiling and welcoming our customers without masks.

Interviewer: Definitely, and do you think that the showroom environment is better before or after the pandemic for creating sales?

Participant:

its an interesting one actually because the months after lockdown, we’ve never been so busy we had some record months but that was pent up demand. We did sort out the weak from the strong so to speak because we were appointment only so anyone who was serious was coming in. so what we would know as the kill rate, the conversion rate, was really high. I think were all looking forward to opening the showrooms properly and having great conversations with customers and welcoming them in to have a browse, albeit the more focussed approach after the lockdown definitely helped, were all in the same mindset that actually we just want to get back to normal. There’s been some things that we’ve managed to uncover as a result of the pandemic that we would keep so as an example we now do unaccompanied test drives with customers and I thin k that is a real positive for giving sales execs more time and for the customers visit so they can do part ex appraisal while the customer is out testing ours. It gives the customer a much more relaxed way of doing business, because they’ve not got a sales exec sat in the seat behind them. So certainly there are some things that we will keep going forward once were out of this pandemic.

Interviewer: And do you think that the customers experience or opinion of the brand has changed during the pandemic?

Participant:

No, I think we have further enforced that we take it seriously, I receive all feedback and I get glowing feedback on our covid secure measures, which has actually given customers a lot of confidence. For 103

those that are out in the purchasing market, I get the comparisons as well that come between us and other businesses. So further cement in a number they will say just what I expect from MercedesBenz, so our levels are up there and we’ve got to make sure that everything we do, we achieve that level.

Interviewer: And how has Mercedes-Benz coped with the pandemic compared to the rest of the automotive industry, if you know?

Participant:

Yeah, I can speak on behalf of Sytner group division Mercedes-Benz, obviously there is MercedesBenz network, which I believe is having a strong performance, but certainly if we look at Sytner group, lockdown 2, we as a group said it wouldn’t be right, were allowed to be open, wee just got to adapt our ways because obviously we were online for sales, however we’ve got to focus on not spending the government’s money and not furloughing people, ultimately, we need to think of our teams, our customers and our teams future and from a customer perspective that offering change slightly because of the way we had to gear up our showrooms, but certainly they were able to do business with us and we tried to make it as easy as possible. You know so from a profitability perspective, we’ve done exceptionally well, its been a, obviously we have had some government support, we’ve had a rates holiday which has been very helpful, especially with a business this size and the overheads we have. But actually even stripping that out, we still are on course for a budget beating performance which is fantastic, and I think that is just testament to what a great team we have, the Sytner approach that we have taken of maximising every opportunity and looking for that opportunity. How can we adapt and we have been on the forefront of adapting. I’ve got colleagues that have run businesses in Newcastle who their groups approach hasn’t been similar to ours and actually they have struggled, certainly in the last few months. So I’m not saying our approach has been perfect, but it has certainly been a real positive approach and with a really good outcome so far.

Interviewer: And how many cases of Covid-19 has Mercedes-Benz of Newcastle had? I think you 4 didn’t you?

Participant:

That’s right, we’ve had 4.

Interviewer: What impact has closing the cafe had?

Participant:

Funnily enough the meeting I went to in between my HOB zoom and coming on with you, that’s what I walked into, the team talking about bringing that back and I had to go in and remind them because sometimes you can get lost in the moment with it and we’ve got to bear in mind, we under government guidelines, our customers are supposed to wear their masks on their face at all times. If we start serving tea and coffee, then we are promoting them to take their masks down. We obviously have water on hand if somebody desperately does need a drink for medical purposes, however it goes against the grain of the business. We love to look after customers, that’s what we do, so that reminder of the reason were doing it, so if you go to Starbucks or costa, you cannot go in and eat or drink indoors, and that’s their sole purpose. Our sole purpose as a business isn’t to be a cafe, that’s an add on for us. Were not in the restaurant trade. If we were we would be shut. and we have got to remember that. We are all desperate to get back to normal but there is a reason that we are doing it. Customers do miss it but we have got to signpost it and be better at signposting it. That’s where I finished with the management team there, once you explain Starbucks and Costa aren’t serving they’re unable to, people go ah yeah! Makes more sense.

Interviewer: How does the need to wear PPE impact customer experience in the showroom?

Participant:

104

Its awful, absolutely awful. Its reading customers, I cant wait for the day when we don’t wear the masks, and are able to wear clear shields, its that big smile, as I mentioned the crows feet. You almost find yourself using more hand gestures as a result of it. The business managers, they tend to struggle that little bit more, and they’re trying to stack a deal for a customer and that’s always a little bit challenging, but needs must and obviously we have got spare masks for customers if they don’t bring them we’ve obviously got all of the disinfectant in place. But the big part that we miss, we can live with all of that, but is wearing the mask at all times, because you loose so much, and I don’t know about you Emily but my hearing, I think I’ve genuinely got good hearing, but the minute I put a mask on I seem to struggle.

Interviewer: Are there any changes that Mercedes-Benz of Newcastle plan to keep following the subsidence of Covid 19?

Participant:

Yes, I think I touched on the sales process side, we definitely will be keeping unaccompanied test drives, we also be keeping, not as many, but certainly hand sanitisation stations. because I do think that’s a positive and it shouldn’t take a pandemic for us all to wash our hands. And then also we’ve experimented with some shift systems which have allowed us to see what the customer demand is. The reason for experimenting with the shift systems has been to ensure we have safe distancing between our team, but actually there is some shifts we will keep because there is a demand and actually it works for the business.

Interviewer: And then finally, is there anything else that you would like to change about the dealership or showroom in general?

Participant:

I’d love more space, I really would, you know as a business, the way I describe it is that we have to grow by the clock now, we cant grow by increasing capacity. during the set hours, hence the shifts hence the rotas we have in place, were not space flash, so I went to our Carlisle site and again, please, worth a visit, they’ve got an abundance of space, just so much of it, they don’t know they’re born, whereas here it is a real challenge that has a knock on effect so much to cars getting caught in the car park, the increase spend on our body shop, but also it just makes efficiency and productivity quite challenging, when someone is driving around the site to find a space, its definitely been helped by the pandemic, because people are on different shifts, so car parks aren’t under as much pressure, but yes I would definitely add more space. But I think for a business, I mean this is 20 years old, I think it looks stunning still, I think people who come in who don’t know the history, and I’ve done it, I’ve asked them and they’re like 6/7 years old and they’re in shock when you explain the actual true age. And we work really hard to keep the standard there and ensure that it looks sharp, and there’s always things you can do, the critical eye when I walk round, sometimes you’ve got to hold yourself back, but you know, were in great shape. We’ve just got to keep it going and get out of this pandemic and push on again.

Interviewer: And has it always been a car showroom, or was it something else beforehand?

Participant:

I don’t actually know, I would imagine that 20 years ago there was a lot of grass, available land up here, so I would say it was just grass, that’s what I would want to say, but that’s without it being confirmed. I know that this was obviously built from scratch for Mercedes-Benz, so yeah I would imagine given the other plots that were available, and the other plots that have been built on in the coming years that it was just grassland.

105