Scent Marketing and the retail environment

ULSTER UNIVERSITY ULSTER UNIVERSITY BUSINESS SCHOOL DEPARTMENT OF MARKETING, ENTREPRENEURSHIP AND STRATEGY ROOM 1B11A JORDANSTOWN

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Fabio Cristiano – Scent marketing and the retail environment 05/05/2015

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UNIVERSITY OF ULSTER

ULSTER BUSINESS SCHOOL DEPARTMENT OF MARKETING

ENTREPRENEURSHIP AND STRATEGY

MODULE TITLE: COMMUNICATION

MODULE CODE: MKT103 (79935)

MODULE COORDINATOR: Dr. SHARON PONSONBY-MCCABE

STUDENT: FABIO CRISTIANO

STUDENT ID: B00616545

SCENT MARKETING AND THE RETAIL ENVIRONMENT

Words: 2432


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INDEX INTRODUCTION __________________pag. 4 SCENT AND THE BRAND-SENSE EXPERENCE _____________________________________________________pag. 4 PSYCOLOGY OF SCENT MARKETING ___________________________________________pag. 5 SCENT MARKETING AND THE RETAIL ENVIRONMENT ______________________________________________________________pag. 6

SCENT MARKETING: ETHICAL ASPECTS _______________________________________________pag. 9

ADVANTAGES AND DISADVANTAGES OF SCENT MARKETING ___________________________________________________________________pag.10

CONCLUSIONS AND RECOMMENDATIONS _________________________________________________pag.12

REFERENCES _______________ pag.13

“Human emotions with

which smell is associated, can be readily exploited via odors, scents, fragrances

and aromas”.


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INTRODUCTION

The aim of this research is to refer to some well-regarded academic study in relation to humans olfactory experience (reception and interpretation) underlining the relationships it has with consumers’ purchasing behaviours, in particular it takes into consideration the aspects standing behind the scent-marketing communication and evaluate the effectiveness of these practices within the retail environment considering some of the positive and negative aspects.

SCENT AND THE BRAND-SENSE EXPERIENCE Brand-sense is a way of understanding, deconstructing and building a brand by analysing how, and where, it impresses each of our five senses. Sounds, pictures, words, smells, tastes and tactile stimuli are though not as important individually as the relationships between them and the brand, it is therefore important to know how it will interact with these stimuli when they are associated with it.

Scent can be a pleasant experience itself but the effects on a person can change sensibly depending on the occasions, a 1992 Bone &. Jantrania study found that lemon-scented cleaner was rated more positively than “coconut-scented cleaner. Conversely, coconut-scented sunscreen lotion was rated more positively than was lemon-scented lotion. Both odours were regarded as pleasant”. People react to brands holistically considering brands from many points of view. How a brand look taste or smell is part of the brand personality and it is this personality influences the consumer final choice.

"Over time, perfume ingredients

have been used in religious services, as medicaments,

to enhance personal environments, applied to skin, and used as aphrodisiac”.


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In the actual market-scape where brand life is dominated by extreme competition and where the consumers is more informed than ever and own their final choice brand identity is a vital asset that can differentiate a brand from its competitors; “looking at your brand differently from your competitors’ and presenting a cohesive and comprehensive sensory experience can create an image that will have more staying power in the minds of your customers and prospects” (Harvest Consulting Group, LLC, 2001).

PSICOLOGY OF SCENT MARKETING

Results revealed that 99% of all brand communication currently focuses mainly on two of the senses – sight and sound. In contrast with these findings, theories linked to psychology explain that emotional connections are instead effectively created with a synergy of all five senses, and as such those brands that are communicating through a multi-sensory experience have the greatest probability to build stronger relationships with consumers.

Most academic studies examining the mechanisms that stand behind the sensorial stimuli and the influence they have on people behaviours are based on the well-defined stimulus-organism- response (S-O-R) paradigm. Regarding ambient scents in retail settings, the S-O-R model returns that environmental

olfactory stimuli (S) (combined with other cues) can affect consumers’ internal evaluations (O) against their approach or avoidance to the purchase occasion (R) (Spangenberg E. R. et al., 1996). In line with this model, other studies regarding the processes behind human sensorial experience have shown that memories recalled by odours are more evocative than those regulated by the other senses (vision, tactile, verbal), in particular scientist have found that “the average of people considered the link between the odours and the events evoked by those odours more emotional” (Herz and Cupchik, 1995).

“Scent can influence mood, feeling, and emotions”.


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In conclusion people have shown prone of stronger and more personal connection when asked to remember an event or object to which they could associate a pleasant scent rather than when the same occasion was happening without the manifestation of that scent.

Furthermore, Hertz R.S. has demonstrated in her studies that scent is between the sensorial experiences the more able to recall emotions rather than facts (that is to recall the emotions associated to those facts), and this is probably because the sense of smell is the only one directly connected to the limbic system the part of the brain that is responsible of performing a primary role in the processing of memory, decision-making, and emotional reactions. Scientists agree that smell is the most powerful of all the senses and appears to be regulated by the activity of chemicals known as pheromones - natural substances believed to play a role in basic human emotions such as fear, hunger, and those related to sex - with scents being omnipresent in our environments. Scent can have very personal connotations being able to enhance people identity; a large portion of the emotional impressions people encounter in their daily life is realised through scent “this provides firms with a good opportunity to express their identity and strengthen their image through the application of scents” (Hulten, Broweus and van Dijk, 2009).

SCENT MARKETING AND THE RETAIL ENVIRONMENT A study done in 2013 by the Global Journal of Commerce and Management Perspective said that ambient scent has the strongest impact when it comes to enhancing consumer behaviours in terms of emotion, evaluation, and willingness to return to a store and purchase intention. Historically scent has been a largely ignored component of marketing or academic research instead marketers have focused on the visual and, to a lesser extent, the auditory stimulation. However in 2005 Martin Lindstrom published his bestseller “Brand Sense” that was a turning point in the industry providing an immediate increased interest in scent marketing.

“Females react differently to certain scents”.


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This historical inattention to scent by marketers is somewhat surprising, after all using fragrances to improve human experiences and communicate meanings is nothing new, Egyptians were already used to good smells on bodies to improve their images and also in historical China, and in ancient Rome and Greece people used fragrances extensively in their houses and during celebrations of rituals. Whereas use of scent is a powerful communication modality people of all times have developed the use of smells to reduce cognitive load, and to provide rich emotionally satisfying experiences. Today the Scent Marketing Industry includes a range of applications such as scents used to attract attention to products and services as part of a promotional tactic; specific scents developed as products for the purposes of providing personal or general odours and to motivate approach behaviours or deodorizing; and ambient scents that are not emanating from a product but present as part of the retail environment (Bradford and Desrochers 2009). Due to connection between olfaction and emotional cognitive processes retailers have the potential to use smell to prompt memories in two different ways, the first is obtaining pleasant associations, the second, which is perhaps even more potentially attractive to them, is the recalling of pleasant experiences and emotions (Davies B. J.; Kooijman D.; Ward P., 2003).

“A major portion of the emotional impressions customers encounter in their daily life

is realized through scent. This provides firms with a good opportunity to express their

identity and strengthen their image through the application of scents”.


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Several years ago Abercrombie & Fitch was one of the first brands to make scent a crucial part of its identity, today the retailer is deploying in the shops a delivery system that is installed on the ceiling and is powered by the track lighting to diffuse the ‘Men’s Cologne’ brand's signature ambient scent; Singapore Airlines hot towels that the flight attendants distribute before and after take-off develops what is now the characteristic ‘Stefan Floridian Waters’ aroma specifically designed as part of the Singapore Airlines brand experience; the British Airways business class lounge at Heathrow are infused with the smell of freshly cut grass and the tangy scent of the sea; while the controlled output of artificial scents used at museums such as the Bow Street Old Whiskey Distillery in Dublin, the Natural History Museum in London, and the Jorvik Viking Museum in York to provide appropriate ambience are just few of the most significant examples of scent strategies in action.

In line with the range of opportunities prospected by the scent marketing environment companies such as Scent-Air, Air-Aroma, ScentWorldEvents and The Aroma Company became leading innovators for scent marketing solutions and as industry experts are offering customised scent strategies to help those brands aiming at stronger identity and higher customer loyalty.

Other companies are currently exploring the world of digitizing smells thinking of a device that would produce odours on demand, while New York-based Demeter Fragrances is taking the scent business into the future, cataloguing thousands of everyday, as well as unusual, smells (according to one report made by the Harvest Consulting Group their East Village boutique rotates in about 150 scents at a time and is looking to have every pleasurable scent in a bottle). These are only few of the most significant examples within the use of scent strategies that underline how scent marketing has become an essential tool for building powerful brand identities in the mind of customers.

For many industries scent marketing is becoming a requirement, according to Ed Burke, director of marketing at ScentAir, the global commercial environmental fragrance market is currently $100 million and is expected to grow to more than $1 billion by 2017, while Jennifer Dublino, VP-development at ScentWorld, a global non-profit organization, estimates the scent-marketing industry is growing at an annual rate of 15%, with revenue of about $300 million worldwide (adage.com, 2014).

“From latin ‘per fumum’ means through smoke”.


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SCENT MARKETING: ETHICAL ASPECTS

The business literature is filled with examples of studies directed to establish the relationship between subliminal visual and auditory stimuli and people reaction to those stimuli. In particular scientist have tried to understand in which ways certain unseen communication has the ability to affect the emotional state. Researches in the same direction concerning the relationships between olfactory stimuli and people behaviours have been neglected until more recent time when scientist have started to examine the effect of scents on humans behaviours in both aware and unaware occasions.

A study conducted at Northwestern University in Chicago has shown the existence of subliminal power of scent in the way that when subjects were exposed to different scents during the observation of pictured faces their judgement about the likability of the faces were changing according to the scent being smelled conscientiously or not. Objective ambient scent technology has the intention of affecting the attitudes and behaviours of consumers for the benefit of the retailers. As per contrast the covert application of ambient scent technology is the hidden intention of affecting the attitudes and behaviours of consumers for the benefit of the retailers. “The burgeoning investigation of such effects has identified olfactory cues as one of the many important components of the retail environment influencing people’s perceptions of the store itself and products offered for sale therein” (Bone and Ellen, 1999).

This kind of findings open to a range of possibilities regarding the use of scent within the commercial scape and retail environment in the way that scent can be used to enhance consumers purchase behaviours, but at the same time they draw questions about the ethic behind this procedures.

“Human beings are the only animals covered

by natural scent”.


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ADVANTAGES AND DISADVANTAGES OF SCENT MARKETING

There are four key advantages of using scent marketing as following observed:

Commonly, only those things that are evident or close to sight are being noticed and it is possible to turn off or direct our eyes to what we choose; people can be distracted by different activities and the meaning of auditory communication can be easily lost while earphones can avoid sounds to be heard; it is also possible to refrain from touch and taste. An enormous advantage of scent marketing is that smell is the only sense we cannot turn off.

A second advantage is its unique ability to differentiate brands. Scent is personal and unexpected while customers are prepared to visual and auditory communication they are less prepared to be exposed to a brand smell. There is no innate suspicion that someone is using a particular smell to persuade purchases (for example that the aroma of chocolate cookies in a bakery shop or of new clothes in a fashion store were created in laboratory to serve scent strategies). A third key advantage is that the sense of smell is directly linked to the right-brain where mood and emotions originate (by contrast, visual and auditory senses are linked to our left-brain) therefore scent may enhance mood and positive emotions playing a key role in creating an inviting environment for customers.

A fourth advantage is that in many ways, scent influences us without our conscious knowledge and has the ability to help us to remember and create meaning making a brand more memorable (scent has the ability to trigger an odour-evoked autobiographical memory this is known as the Proust phenomenon, based on Marcel Proust's autobiographical memory of a pastry).

“Memory of smell is the most enduring we have”.


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According to a study on the relationship between scent advertisements and memory ads in magazines containing scent are much more likely to be remembered than those without scent (Czaplewski A., McNulty P., Olson E.M., 2012).

In many ways scent marketing can increase sales revenue, enhance customer perception of the brand, encourage repeat purchasing, sway customer to recommend the brand to others, inspire brand loyalty and advocacy, get a better return on investments on marketing spend (scentworldevents.com, 2013)

Scent marketing has also the potential for limitations and drawbacks, which should be considered:

When scent is overused it may lead to cluttered advertising, create anosmia (the technical term for an acute inability to perceive a particular scent) or alienating customers letting them lose their sense of smell. The use of artificial smells within certain environments can be seen as excessively unauthentic and result in negative public relations (like fake steak smell into the waiting area of a restaurant).

“Some customers will avoid environments with heavy perfumes, in addition to this there will always be a small numbers who have little or no sense of smell and will not respond to the stimuli, or those who may respond in negative ways to any given scent. There are numerous potential costs involved with using scent, for example equipment and monthly costs for the scent. Finally, unlike visual and auditory stimuli, a unique scent cannot be protected with a patent, trademark or copyright.

“Perfume is the unseen, but unforgettable, fashion accessory. A perfume creates moods,

lifts spirits, evokes memories. one cannot be well-dressed without it”.


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CONCLUSIONS AND RECOMMENDATIONS The aim of any company is to create powerful brands that will impress their audience, marketers and brand-managers strive to have the best products recognition and perception and to create meaningful brands that will

dwell in the consumer mind; the only way to do this is through offering a powerful multi-sensorial brand experience. The prize for these brands willing to compete in the globalization of the current market-scape is a timeless fame but the way to the success is full of difficulties and it is passing through the creative experimentation of new ways to communicate and create relationships with customers by different meanings. Traditionally, the information in the commercial world has been organized both visually and in auditory form but in the current environment congested by images, signs and sounds the marketing strategies have to explore new grounds focusing their effort on the other senses of touch, smell and taste. No doubt that this innovative approach is paramount for ambitious companies because only those businesses that will develop originality within their marketing strategies and will risk to overcome the boundaries of traditionalism, seeking enchantment and surprise, will be so celebrated as a star in the market sky.

“Among sense of humor, dress,

attentiveness, competence and sensitivity, scent plays role in determining

ratings of attractiveness”.


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REFERENCES - Adage.com, (2014), “How Marketers Are Selling With a Signature Sensory Experience”, Minda Smiley. [Online] Available: [http://adage.com/article/cmo-strategy/smell-money-marketers-sell-scent/296084/]

- Aggleton, J.P. and Waskett L. , (1999), The ability of odours to serve as state- dependent cues for real-world memories; Can Viking smells aid the recall to Viking experiences? British Journal of Psychology, 90, (1),1.

- AirTonix.com (2012) Scent-Marketing, [Image Online], Available: www.airtonix.com/scent-marketing/ [4 May 2015]

- Bradford, K. and Desrochers, D. (2009). The use of scents to influence consumers: the sense of using scents to make cents. Journal of Business Ethics, 90, 141-153.

- Czaplewski, A.J. , Nulty, P. and Olson, E.M., The smell of Success, Marketing Management., Business Source Premier, 21 (3), 36-43. [Online]Available: http://eds.a.ebscohost.com/eds/detail/detail?vid=2&sid=16136f35-005b-44e1-9b7c-e006e97eacb2%40sessionmgr4004&hid=4108&bdata=JnNpdGU9ZWRzLWxpdmU%3d#db=buh&AN=83355453

- Davies, B.J. , Kooi jman, D. and Ward, P. (2003) The Sweet Smell of Success: Olfaction in Retailing, Journal of Marketing Management, 19 (5/6) 611-627., [Online]Available: http://eds.a.ebscohost.com/eds/detail/detail?vid=3&sid=16136f35-005b-44e1-9b7c-e006e97eacb2%40sessionmgr4004&hid=4108&bdata=JnNpdGU9ZWRzLWxpdmU%3d#db=buh&AN=11711139

- Economist.com, Scents and sensitivity, (2007) [Online], Available: http://placedesairs.com/PDFCiencia/Scents%20and%20Sensitivity.pdf [4 May 2015]

- Freistad, M. and Wright, P. (1994), The Persuasion Knowledge Model: How People Cope with Persuasion Attempts. Journal of Consumer Research, 21, 1-31.

- Grohmann B., Spangenberg E.R., Sprott D.E., Tracy D.L. , (2004), Effects of Gender-Congruent Ambient Scenton Approach and Avoidance Behaviors in a Retail Store , [Online], Available: http://placedesairs.com/PDFCiencia/Effects%20of%20Gender%20Ambient%20Scent.pdf [04 May 2015]

- Harvest Consulting Group, Brand Sense, Building brands with sensory experience, [Online], Available: http://placedesairs.com/PDFCiencia/Building%20Brands%20with%20Sensory%20Experiences.pdf [4 May 2015]

“Scents are associated with something

indefinable and transcendental”


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- Herz, R.S. , (2004) A Naturalistic Analysis of Autobiographical Memories Triggered by Olfactory Visual and Auditory Stimuli, Chem. Senses 29: 217–224, [Online], Available: http://placedesairs.com/PDFCiencia/A%20Naturalistic%20Analysis%20of%20Autobiographical%20Memories%20Triggered%20by%20Olfactory%20Visual%20and%20Auditory%20Stimuli.pdf [4 May 2015]

- Herz, R.S. and Cupchik, G.C. (1995) The emotional distinctiveness of odor-evoked memories. Chem. Senses, 20, 517–528.

- Interlab.com (2012) Home Page, [Image Online], Available: www.interlab.com.sg/scentmarketing.htm [4 May 2015]

- Joseph Kaye, Making Scents, (2007) [Online], Available: http://placedesairs.com/PDFCiencia/Making%20Scents%20-%20Aromatic%20output.pdf [4 May 2015]

- Muzakhudsonvalley.com (2012) Home Page, [Image Online], Available: www.muzakhudsonvalley.com/smelling/ [4 May 2015]

- Parsons, A.G. (2009). Use of scent in a naturally odourless store. International Journal of Retail & Distribution Management, 5, 440-452.

- PlaceDesAirs (2014) Science and Scent Marketing, [Online], Available: http://placedesairs.com/Ciencia-y-marketing-Olfativo.asp [4 May 2015]

- Rosenthal, J. (2009). Led by the nose. Economist, 20 December, 2.

- Scentcommunication.com (2012) Home Page, [Image Online], Available: www.scentcommunication.com/about/index.html [4 May 2015]

- ScentMarketingUSA.com (2014) Fragrances, [Image Online], Available: www.scentmarketingusa/fragrances.com [4 May 2015]

- Scentic .com (2012) Scent-Marketing, [Image Online], Available: www.airtonix.com/scent-marketing/ [4 May 2015]

- ScentWorld (2014) Home Page, [Online], Available: www.scentworldevents.com [15 Apr 2015]

- Smiley, M. (2014) Dollars & scents: From clothes to cars to banks, brands seek distinction through fragrance. Chicago: Advertising Age. Available from: http://adage.com/article/cmo-strategy/smell-money-marketers-sell-scent/296084/

- Spangenberg, E. , Crowley, A. , and Henderson, P. (1996). Improving the Store Environment: Do Olfactory Cues Affect Evaluations and Behaviours. Journal of Marketing, 60 (2), 67-80 .

- Strugnell , C. and Jones, L. (1999), "Customer perceptions and opinions of fragrances in household products". Nutrition and Food Science, 99 (4), 21-24.

“Unidentified scents make people feeling anxious”

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Scent Marketing and the retail environment