Examining scent on consumer reactions

Studying the Harmony of Store Fragrance with Brand Image on Consumer Reactions

Ms. Dr. Shadan Vahabzadeh Monshi, Assistant Professor, Department of Business Administration, Islamic Azad University, North Tehran Branch, Iran

Salar Hashemi, Master of Business Administration, Islamic Azad University, North Tehran Branch, Iran

Abstract

The present study was conducted with the aim of investigating the coordination of store scent with the mental image of the brand on consumer reactions. This study is an applied study with a descriptive-survey method. The statistical population of this study consists of all customers of luxury restaurants in Tehran (including Khayyam's five-star international restaurant garden, Anar, Deljin, Hills, Nakaya, and Tehran Nights). The sample size is estimated using the available random sampling method and the Cochran formula, which, considering the large number of these people, is estimated to be 384 people. A questionnaire was used in this study to collect data. The content validity of the questionnaire has been approved by professors and experts. Convergent validity has also been calculated and approved. In this study, Cronbach's alpha method has also been used and approved to determine the reliability of the test. Descriptive and inferential statistical methods (structural equation modeling) were used to analyze the data. The findings indicate that all the research hypotheses were confirmed. In other words, the fit of scent with brand image has a significant positive effect on emotional arousal, perceived space, perceived pleasure, attitude towards the environment, and customer spending.

Keywords: Sensory marketing, store scent, fit of scent with brand image, consumer response, luxury restaurants.

Introduction

Scent branding is a branding strategy used by companies to evoke specific emotions or memories through the use of specific scents. However, fragrance branding is not just about the actual scent. It can also be achieved through the clever use of brand imagery. On the other hand, brand imagery can be very effective in scent branding. By using imagery associated with specific scents, companies can capitalize on the emotions and memories that those scents evoke in consumers (De Luca & Battelho, 2021). Scents that evoke personal memories can create more emotional and evocative memories than other auditory or visual memories; and these memories may be lasting, deep, and special due to the close connection between the sense of smell and memory. These distinctive characteristics of scents allow practitioners to use scents to market products (e.g., to create a space that has a pleasant, evocative/nostalgic scent, or as a source of (Araja et al., 2020)

Influencing the mindset of the customer is the goal of any successful retail business that wants to sell their goods or services. Scent marketing is simply one more method that you should add to your marketing strategy. Whatever environment you are looking for, you can cross an olfactory note or a combination of scents. Unlike most aspects of marketing that target the consumer’s visual or auditory senses, this field targets only the olfactory senses (Iskey et al., 2021). Olfactory notes can create instant emotional connections with customers and are highly effective in increasing sales. Research has shown that scent marketing can increase retail sales by up to 11% and increase customer satisfaction scores by up to 20% (Rati & Rajain, 2021). Whether perceived alone or in combination with other items (e.g., music, products), scents can evoke emotions (Helmfalk & Holten, 2017) and influence people's moods.

Scents bring a sense of well-being and relieve anxiety. Scents of products stimulate a sense of surprise. Babin et al. (2004) consider the feeling of weakness as a result of the negative effect between emotions and environmental factors (such as music, scents, colors). Scents have a positive effect on the evaluation of the environment, music, products and services. Scents have a positive effect on brand recognition, topic memory, time passing, product review, spending, people's willingness to buy, people's willingness to visit the store, consumer satisfaction, social interactions and product sales growth. (Araja et al., 2018)

Studies show that consistent/appropriate scents with products can have a positive effect on attracting people's preferences, product evaluation and decision-making process. Also, scents that are consistent/congruent with products may positively affect people’s willingness to buy, their sales, their shopping for and purchasing of compatible products, spending, and consumer emotional reactions. When scents are not consistent with the brand image, product evaluation is negative (Araja et al., 2020).

One of the important issues that companies are concerned about is providing services to Attracting customers and gaining their satisfaction. In addition to repeatedly visiting their favorite organization to purchase products or use services, the customer, as an additional factor in the field of advertising the organization's products and services, plays an important role in promoting the profitability and improving the organization's image in the minds of potential consumers through recommendations and orders to others. Providing an appropriate and quality image of the company along with desirable services has been raised as a challenge to create a competitive factor in attracting consumers. Although the issue of olfactory fit has been examined in several studies and its marketing management methods based on olfactory fit are developing and progressing (Sulfora et al., 2023), no study has been conducted on consumers' perception of the fit between scent and brand image, and the effects of this perception on their reactions. Therefore, it is not enough to use a scent simply because it "smells good" or because it is appropriate for the product, the sensory factors in the environment, and the consumer's gender; rather, consumers' perception of this scent must be in line with the brand image (Wu and Chen, 2022).

This can be done by influencing the emotions, feelings, and attitudes of customers, including perceived pleasure and perceived atmosphere. Influencing the aforementioned attributes in the customer leads to the customer’s orientation towards spending. This can be achieved by creating a fit between the scent and the company’s brand image in the customer. Some studies did not observe any significant effect on the fit between scent and sales (Kiyuja, 2017), the fit between scent and customer mood, and the fit between scent and evaluation of experienced images (Haas et al., 2018). However, by reviewing the background and literature on the subject, no research has been found that has examined the fit between scent and brand image in luxury restaurants. Given the high prices of such restaurants and the desire to maintain a competitive advantage in the vast restaurant industry, it seems necessary to identify factors that can encourage customers to spend. Thus, and considering the existing research gap, this research will answer the question of what effect the appropriate store scent will have on customer decision-making?

Theoretical Basis

Experiential Marketing

Experiential marketing, also known as interactive marketing or event marketing, is a strategy that focuses on creating immersive experiences that actively engage the consumer with the brand. It is all about creating a meaningful connection between the consumer and the brand through a memorable and unique experience (Spence, 2019). In today’s fast-paced and competitive world, experiential marketing has become a popular and effective tool for growth marketing. It is no longer enough to simply promote a product or service. Brands need to create an emotional connection with their customers to stand out from the crowd (Baker and Jakula, 2020). Experiential marketing is a way for brands to connect with consumers through experiences. Although these experiences are usually in-person, they often have digital components, and the entire package is designed to bring a brand to life in a big, meaningful way (Moore, 2023). They range from intimate events to celebrity partnerships

Or it’s impactful. There are no limits – as long as the experience makes sense for the brand, supports its marketing goals, and brings surprise and delight to customers (Rotter, 2020). Experiential marketing is a marketing strategy that aims to deliver unique and branded experiences to audiences. The goal is to influence customer perceptions and purchasing behavior in return for their active participation in the brand experience (Gunawan, 2022). Experiential marketing campaigns can take many forms. Examples include tours, brand activations, classes, workshops, seminars, events, or parties. Experiential marketing helps diversify marketing efforts and allows brands and companies to move beyond the traditional monologue of visual advertising. In doing so, customer-focused experiences offer brands an opportunity to differentiate their products, voice, and identity (Davi et al., 2024). It is also common for brands to refer to experiential marketing as multisensory marketing, as brands can use sensory components to enhance their efforts.

use their experiential learning (Spence, 2019).

Types of Customer Experience

Customer experience is the feelings and thoughts that result from all influences - both tangible and intangible - from any person or anything that directly or indirectly represents an organization, brand or product. Customers have moved beyond the mere evaluation of the product's features and functional characteristics and want to look at the product as an experience, and it is these five human senses that are vital in people's experience of various purchasing and consumption processes. It is through these senses that a person becomes aware of companies, products and brands and understands them (Momani, 1400). In today's world, leading brands; With competition intensifying, brands have realized that providing a memorable experience to customers is very important for survival and gaining a competitive advantage. Sensory marketing can be effective in a person's ultimate purchasing and consumption experience; An experience in which the five human senses interact and interact with the brand in a transcendent experience (Baker and Jakula, 2020).

Customer experience is divided into five categories including sensory, emotional, intellectual, practical and interactive experience.

They do, so that each should be realized according to the context in which the customer is located, and at the same time, more than one experience can be provided to the customer in a particular situation (Rotter, 2020).

Scent Marketing

Scent marketing is simply the strategic use of fragrance at specific consumer touchpoints to influence their behavior. With the right scent, an emotional connection can be created with the customer and make the shopping experience more memorable. This strategy is both an aggressive and a subtle marketing technique; it is aggressive because it allows businesses to reach people beyond the confines of their store as the chosen scent can be diffused through open doors and windows. This is subtle because most consumers do not realize that the scent they are smelling is intentional and not accidental (Araja et al., 2021).

Scents can affect people’s emotions, so they have the potential to influence consumer behavior. Lavender, basil, cinnamon and citrus scents are calming, while mint, thyme and rosemary are uplifting. Ginger, cardamom, licorice and chocolate tend to stimulate romantic feelings, while rose evokes positivity.

(Gribs-Kabusik, 2018).

Brand Image

A brand is a seller’s or manufacturer’s identity. A brand is a seller’s enduring commitment to provide a set of specific features, benefits, and services to buyers. A brand is a persistent set of characteristics, images, or feelings that customers recall or experience when they think of a particular brand, product, service, organization, or situation (Dam and Dam, 2021). A brand is a name, phrase, sign, symbol, design, or any other characteristic or combination of characteristics that identifies the seller of a good or service from other sellers in the marketplace. In other words, a brand is the set of all shared emotional associations associated with the brand (Phillips and Pradiani, 2024).

Brand recognition occurs when the brand and its qualities are generally known to customers and consumers. A brand consists of commitments from the seller to the customer and a set of attributes for the customer.

To provide satisfaction to the customer. These features may be real or unreal, logical or emotional, tangible or intangible (Afyansiyah, 2024).

Trademarks are signs of the product’s identity to the customer and protect the customer and the manufacturer from competitors who are trying to produce similar products. From the customer’s perspective, a brand can be defined as a set of experiences that are created throughout all the interactions between the product or company and the customer (Hein et al., 2020). A brand is generally the cumulative effect of all marketing efforts that slowly and steadily create an image in the minds of customers and contribute to the success of a company by creating stronger cash flows and higher values for shareholders. In addition, in the overall view of branding, the brand can be used as a strategic tool for the company to increase its performance (Biligin, 2018). The description (identity or image) of the brand is matched to the needs and desires of the target market, using the marketing mix including price, product, distribution and promotion. The success of this process determines the strength of the brand or the level of brand loyalty.

determines. The value of a brand is determined by the level of brand loyalty, which guarantees future cash flows (Fasha et al., 2022). Brand image is a description of the brand's characteristics and associations that link the customer to the brand. Basically, brand equity stems from customers' greater confidence in the brand compared to competing brands. This confidence leads to customer loyalty and their willingness to pay a reasonable price for the brand (Zia et al., 2021).

Research Background

Poursoltani Zarandi et al. (1403) in their research designed a sensory marketing model with emotional attachment to the brand and satisfaction with the sensory experience of customers of sports pools in Alborz province. The results showed that there is a positive and significant relationship between sensory marketing and emotional attachment and satisfaction with the sensory experience. Also, based on the regression equation, the visual and tactile dimensions are eligible to predict emotional attachment, and the visual, tactile, and olfactory dimensions are eligible to predict satisfaction with the sensory experience. On the other hand, the pattern search results showed that sensory marketing

It has a positive and significant effect on emotional attachment and satisfaction with sensory experience.

Sandi (1402) reviewed the role of sensory marketing on customer loyalty in a study. In this study, it is stated that "smell" directly and at the fastest speed affects memory. Sound has different sound and tone according to the frequency. "Sound" has a long-term effect on memory and a large amount of information is absorbed through sound. "Sight" is the most effective sense for presenting sensory marketing messages to customers. Since the sense of smell is related to breathing, it is a sense that cannot be ignored. "Taste" differentiates between sweet, salty, sour, bitter and umami. When humans consume food, these five senses work in harmony, because food is not only related to taste, but also to smell, texture, appearance and chewing sound. Finally, "touch" is a sensory factor that is felt by the skin.

Hong and Chen (2022) investigated the creation and deepening of brand loyalty through brand experience and customer interaction in their case study.

Taiwanese chain restaurants were, according to their study, the mediating mechanism(s) of brand experience and customer engagement are among the broad structures for creating a sense of satisfaction and purchase intention. Their results showed: 1) Emotional experience is the main driver of customer engagement. 2) Sensory experience has a significant effect on cognitive engagement, but does not affect emotional engagement. Aesthetic experience affects emotional engagement, but not cognitive engagement. 3) Emotional engagement is the main driver of brand loyalty, followed by cognitive engagement. 4) Emotional engagement is the main mediator in creating and deepening brand loyalty.

Saty et al. (2021) investigated the mediating role of service quality and the relationship between sensory marketing and customer satisfaction. According to their studies, it was found that sensory marketing techniques have caused a sense of satisfaction and a desire to repurchase in customers. The importance of sensory marketing for increasing customer satisfaction is closely related to service quality.

Lu and Wu (2021) gave special importance to the role of extraordinary sensory experiences in shaping love for the destination brand and researched this issue. Their studies on

The basis of online surveys was conducted, which showed that brand love comes from extraordinary sensory experiences. And the customer's momentary and retrospective interest has a strong relationship with the sensory experiences of the desired brand. That is, the extraordinary feeling and love for the destination brand, so providing extraordinary positive sensory experiences is an effective way to facilitate love for the desired brand.

Research Method

This research is an applied study with a descriptive-survey method. A questionnaire was used to collect data, which was used in the present study to confirm the validity of the questionnaire's content from the perspective of university professors and experts. In the present study, the convergent validity of the research tool was calculated. In this study, the Cronbach's alpha method was also used to determine the reliability of the test. The statistical population of this study consists of all customers of luxury restaurants in Tehran (including Khayyam's Five-Star International Restaurant Garden, Anar, Deljin, Hills, Nakaya, and Tehran Nights). In order to analyze and analyze data and to analyze and analyze the factors affecting customer decision-making, the structural equation technique is used in the case of normality.

Variables will be used from AMOS24 software, otherwise Smart PLS3 software will be used.

Research results

Measurement model evaluation (external model):

Three items are used to examine the fit of the measurement model. Index reliability, convergent validity, and divergent validity. Index reliability is measured by three indicators. Cronbach's alpha, composite reliability, and factor loading coefficients.

Factor loading of indicators or items:

At this stage, the factor loading related to the measured indicators of each variable is examined. Factor loadings higher than 0.4 are desirable, and according to the results obtained, it should be noted for further explanation that the factor loading of questions that are less than 0.4 were removed so that the model reaches appropriate reliability. Table 1 shows the factor loadings of each indicator in the model.

Table 1) Factor loading of model variables

Structure	Index	Load factor	Structure	Index	Load factor
Fit between scent and brand image	q1	694/0	Perceived space	q5	742/0
	q2	711/0		q7	737/0
	q22	690/0		q16	743/0
	q24	707/0		q21	768/0
	q25	670/0	Perceived pleasure	q6	743/0
	q26	694/0		q17	742/0
	q27	699/0		q20	771/0
	q28	699/0		q23	749/0
	q30	684/0	Attitude towards the environment	q8	750/0
Emotional stimulation	q3	762/0		q12	721/0
	q4	755/0		q13	770/0
	q19	790/0		q14	718/0
	q29	733/0		q15	763/0
Customer cost	q9	812/0
	q10	796/0
	q11	808/0

The model in the path coefficient and initial factor loadings mode is presented in the figure below.

Figure 1) Model with question factor loadings

External model reliability assessment:

In this stage, two indicators are used to examine the reliability of the model: composite reliability (CR) and Cronbach's alpha coefficient.

Composite composite reliability (CR):

If the composite reliability value for each construct is above 0.7, it indicates adequate internal reliability for the measurement models, and a value less than 0.6 indicates the absence of reliability. Note that

It is important to note that composite reliability in structural modeling is a better measure than Cronbach's alpha, because in calculating Cronbach's alpha for each construct, all indicators are entered into the calculations with equal importance. While for calculating composite reliability, indicators with higher factor loadings are more important (Davari and Rezazadeh, 2013). The composite reliability value reported for each of the model variables is reported in Table 2.

Table 2) Composite Reliability (CR)

Variables	Amount CR
Emotional stimulation	846/0
Fit between scent and brand image	903/0
Perceived space	835/0
Perceived pleasure	838/0
Attitude towards the environment	862/0
Customer cost	847/0

As can be seen, the composite reliability values for all research variables are higher than 0.7, which indicates the appropriateness of composite reliability.

Cronbach's alpha coefficient: In Table 3, the value of this coefficient is estimated for each of the factors.

Table 3) Cronbach's alpha coefficient

Variables	Alpha value
Emotional stimulation	756/0
Fit between scent and brand image	881/0
Perceived space	737/0
Perceived pleasure	743/0
Attitude towards the environment	799/0
Customer cost	729/0

According to the tables above, Cronbach's alpha coefficient for all the constructs in question is higher than 0.7, which indicates appropriate reliability of the model.

Convergent validity examination

The second criterion for examining the fit of measurement models is convergent validity, which examines the degree of correlation of each construct with its questions (indicators). The higher this correlation, the greater the fit. The value of this coefficient is presented in the table below for each of the constructs. The value of this index varies from 0 to 1, with values higher than 0.4 being accepted.

Table 4) Average variance extracted (AVE)

Variables	Amount (AVE)
Emotional stimulation	578/0
Fit between scent and brand image	483/0
Perceived space	559/0
Perceived pleasure	564/0
Attitude towards the environment	555/0
Customer cost	649/0

Divergent validity

Discriminant validity is at an acceptable level when the AVE for each construct is greater than the shared variance of that construct and other constructs (the square of the correlation coefficients between constructs) in the model. The main characteristic of this matrix is that its main diameter is the largest number in the same column (Hanafizadeh and Zare, 2012). Then, we replace the values on the main diameter of the matrix with the square root of the variance explained in the AVE, and finally Table 5 is presented.

Table 5) Fornell-Larker table after inserting the square root of AVE values

	Emotional stimulation	Fit between scent and brand image	Perceived space	Perceived pleasure	Attitude towards the environment	Customer cost
Emotional stimulation	760/0
Fit between scent and brand image	684/0	695/0
Perceived space	736/0	609/0	748/0
Perceived pleasure	740/0	616/0	713/0	751/0
Attitude towards the environment	723/0	623/0	722/0	736/0	745/0
Customer cost	753/0	722/0	721/0	722/0	805/0

The research hypotheses of structural fit using t-coefficients are as follows: these coefficients must be greater than 1.96 in order to confirm their significance at a confidence level of 0.95. Of course, it should be noted that t-numbers only indicate the accuracy of the relationships and the intensity of the relationship between the structures cannot be measured with them, and path coefficients also indicate the positive or negative effect of one variable on another variable (Davari and Rezazadeh, 2013).

Table 6). Results from testing the model hypotheses

Row	Research hypotheses	Path coefficient	T statistic	P-values	Level of significance	Test result ¬Hypothesis
1	Fit between scent and brand image Stimulating emotions	824/0	708/25	000/0	05/0>	Confirmation
2	Fit between scent and brand image of perceived space	809/0	833/22	000/0	05/0>	Confirmation
3	Fit between scent and brand image Perceived pleasure	816/0	501/25	000/0	05/0>	Confirmation
4	Fit between scent and brand image Attitude towards the environment	823/0	308/25	000/0	05/0>	Confirmation
5	Fit between scent and brand image Customer cost	770/0	261/20	000/0	05/0>	Confirmation

As can be seen in Table 6, all hypotheses whose t-statistics are higher than 1.96 are significant and are confirmed.

The table of consistency of the results of the present study with the findings of other studies is presented in the following table:

Table 7) Table of similarity of research results

Research hypotheses	Test result ¬Hypothesis	Alignment with other research
Fit between scent and brand image Stimulating emotions	Confirmation	Araja et al. (2021)
Fit between the brand image and perceived space	Confirmation	Borsi (2020); Zarzo and Stanton (2009)
Fit between scent and brand image Perceived pleasure	Confirmation	Mansing (2023)
Fit between scent and brand image Attitude towards the environment	Confirmation	Borsi (2020); Zarzo and Stanton (2009)
Fit between scent and brand image Customer cost	Confirmation	Figueredo and Iriz (2021); Rimkot et al. (2016)

Discussion and Conclusion

According to the first hypothesis, the fit of scent with brand image has a significant positive effect on arousing emotions. Sensory branding, especially through the use of scent, can play an important role in creating emotional connections with customers. Scent has the power to transport people to unique personal moments. In the restaurant space, human connection with scent and brand imagery can be used strategically to strengthen brand identity. According to the result of this hypothesis, the reinforcement and fit of scent and the created brand image effectively arouse customer feelings and emotions. This result is in line with and consistent with the findings of the research of Araja et al. (2021). According to the second hypothesis: the fit of scent with brand image has a significant positive effect on perceived space. The memorable nature of the scent ensures that customers associate the scent with the brand image, creating a strong brand identity that helps differentiate the brand from its competitors. The scent becomes so associated with the brand that it becomes part of the overall brand image and marketing strategy. By diffusing a brand's specific scent, customers can

Establish a stronger connection with the desired space. As a result, according to the findings of testing this hypothesis, the fit between scent and brand image can affect the perceived space. This finding is consistent with the results of research by Borsi (2020) and Zarzo and Stanton (2009). Also, according to the third hypothesis, the fit between scent and brand image has a significant positive effect on perceived pleasure. According to the findings of testing this hypothesis, it can be affected by pleasurable stimuli. In line with the results of this hypothesis, Mansing (2023) has also confirmed the effect of scent on perceived pleasure. Fourth hypothesis: The fit between scent and brand image has a significant positive effect on attitude towards the environment. This result is also consistent with the findings of research by Borsi (2020) and Zarzo and Stanton (2009). And according to the fifth hypothesis: The fit between scent and brand image has a significant positive effect on customer spending. Using a specific scent and creating a fit between scent and brand image through brand development fall into a wide range of services that encourage customers to decide to buy, even at the cost of additional costs.

Reuse of services. The results of testing this hypothesis are consistent with the findings of Figueredo and Iriz (2021) and Rimkot et al. (2016). In general, it can be said that scent marketing or olfactory branding using specific scents improves the customer experience and strengthens brand identity. This strategy takes advantage of the direct connection of the sense of smell with emotions and memory to engage customers more, increase their stay, and boost sales. Many businesses, including restaurants, use this method to differentiate themselves, establish deeper emotional connections, and increase customer loyalty.

This research has managerial implications for restaurant owners, with valuable insights such as the fundamental importance of scent persistence that goes beyond the brand itself. This is an important finding that, if used correctly, can be an advantage for offering new scent-based services as a luxury brand development. Other practical suggestions based on the results are as follows: Creating a pleasant atmosphere that makes customers feel at home

They want to linger longer, visit more often, and recommend to others. Fragrant gifts that help promote the restaurant's brand and stay in the customer's mind longer. By understanding the personality, core values, and target audience of the restaurant, new services can be provided based on the personality, desires, and tastes of the customers.

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