The Value of Music: The Effects of Music on Atmosphere in a Bank and a…

The Value of Music:
The Effects of Music on Atmosphere
in a Bank and a Bar

Two studies by Dr Adrian C. North, David J. Hargreaves, Jennifer
McKendrick

Summary by Claire Wells, PRS
July 2004

Introduction
This summary is from a report on two studies carried out by Dr Adrian C. North,
David J. Hargreaves and Jennifer McKendrick, from the Department of
Psychology, University of Leicester, on the effect of music on customers'
perception of atmosphere.

The aim of these studies is to research into the effects of music on atmosphere.
The studies concern two venues, a banking hall and a bar both based in the East
Midlands.

The studies looked at the following factors:

How music affects:

    ·   Atmosphere
    ·   Purchasing
    ·   Ability to influence perception


These studies are linked to a previous study undertaken by North and Hargreaves
(1996) which took place in a student cafeteria which found that diners' liking for
the music played increased their liking for the cafeteria.

The present studies hope to find if the same is true for the two new venues.




The Effects of Music on Atmosphere in a Bank and a Bar                             1
Dr Adrian C. North, David J. Hargreaves and Jennifer McKendrick
Summary Claire Wells, PRS
July 2004
Study one- the bank
By studying people's opinions, perceptions and purchasing behaviour through
various scientific tests the study hoped to find out if music does affect
atmosphere.

Many research studies have already looked into the possibility of environmental
variables such as lighting, crowding, layout and smell having an impact on
atmosphere of a business and customers' purchasing intentions. The
acknowledgement for the introduction of the concept of store atmospherics
usually goes to Kotler (1973-1974):

`the effort to design buying environments to produce specific emotional effects in
the buyer that enhance his purchase probability'

Other studies have shown that effects upon the perception of a store and its
image are related to:

    ·   patronage frequency
    ·   money spent
    ·   store choice
    ·   brand loyalty
    ·   promotion sensitivity
    ·   price sensitivity
    ·   responses to new brands

More recently Cherulnik (1991) found that people shared common conceptions of
restaurant façades, allowing them to distinguish between four common types of
restaurant. From just looking at the façade, the subjects were able to describe
the quality of food, ambience, and the characteristics of the fellow diners. This
was also studied by Leather and Lawrence (1995) investigating the effect of
specific social and environmental features on the perception of pubs; for example
untidiness had a generally negative effect on judgements of the landlord.

Findings such as these can indicate that customers' perception of the physical
environment is a crucial aspect of in-store marketing. This study looks at whether
music has the same impact as the other variables.




The Effects of Music on Atmosphere in a Bank and a Bar                               2
Dr Adrian C. North, David J. Hargreaves and Jennifer McKendrick
Summary Claire Wells, PRS
July 2004
The study
The first study took place in a banking hall; with classical, easy listening and no
music being played to the customers over three weeks.

Below is a selection of the tracks that were played. (For full listing please refer to
actual study.)

Classical                                  Easy Listening
The Four Seasons (spring) - Vivaldi        A Whiter Shade of Pale
Fifth Symphony - Beethoven                 Passion Flower
Nessun Dorma ­ Puccini                     Smoke Gets in Your Eyes
Flower Duet ­ Delibes                      Roses From the South
        All easy listening tracks performed by James Last and his orchestra

From the following 20 adjectival scale customers were asked to rate the banking
hall and the music.

masculine           down-market
exciting            youthful
spiritual           peaceful
cerebral            fun
up-market           tacky
restful             feminine
sophisticated       invigorating
happy               aggressive
fresh               fashionable
rebellious          dignified

Statistical analysis of these 20 adjectives showed that four factors were
underlying customers' responses namely:

    ·   dynamic/upbeat
    ·   dignified
    ·   assertive/aggressive
    ·   inspirational

The sample taken from this bank comprised 331 people, and showed that the
average number of visits to the bank per month from this sample was 5.09.

The study used the same classical and easy listening music as the earlier
cafeteria study. The testing was carried out between 9am and 5pm from Monday
to Friday over three consecutive weeks in October and played at a quiet volume
on a continuous loop. Customers were approached with the questionnaire as they
walked towards the exit; it was stressed that it was an independent academic
study rather than a survey for the bank.




The Effects of Music on Atmosphere in a Bank and a Bar                                3
Dr Adrian C. North, David J. Hargreaves and Jennifer McKendrick
Summary Claire Wells, PRS
July 2004
The results
The results showed that the banking hall was perceived as less `dynamic/upbeat'
when no music was played than when either of the two types of music was
played. It was also seen as more `inspirational' when classical music was played
than when easy listening was played or when there was no music.

This means that the use of music/no music did influence the perceived
atmosphere of the banking hall. Also there was a positive correlation for each of
the 20 adjectives between the rating of the music and ratings of the banking hall.
For example, the more that customers perceived the music as being `fun', so the
more the banking hall was also perceived in this way.

The descriptions that were found to be the strongest in the bank study were also
these that were found to be the strongest in the previous student cafeteria study.
Different types of music gave rise to differences in factor scores in both the
banking hall and the student cafeteria. The similarity between these two sets of
factors, and the finding that scores on both were affected by background music,
suggests that people's responses to commercial environments can be conceived
in terms of a few common dimensions, and that music can influence their
perceptions of the environment in terms of those dimensions.




The Effects of Music on Atmosphere in a Bank and a Bar                             4
Dr Adrian C. North, David J. Hargreaves and Jennifer McKendrick
Summary Claire Wells, PRS
July 2004
Study two - the bar
This study investigated whether a Factor Analysis report of responses to the bars
environment would lead to the same factor results as in previous studies.

Previous research suggests that music may influence customers' spending. For
example Areni and Kim (1993) played classical music and top-40 chart music in a
wine cellar, and found that the classical music style led to customers buying more
expensive wine than did the top-40 chart music. It could be argued that the
reason more expensive wine was purchased was a behaviour that `fits' the
comparatively sophisticated and up-market stereotype of classical music.

In relation to the above, North, Hargreaves and McKendrick (1997) also found
that when French music was played in a supermarket the French wine outsold the
German wine; the same when the music was reversed and the German music
was played the German wine out sold the French.

North and Hargreaves (1996) also found that diners' estimates on the maximum
amount they were prepared to pay for a variety of foods in the cafeteria varied
depending on the background music played.

One idea regarding the nature of subjects' rating is that if affective responses to
music can become associated with affected responses to a commercial listening
situation, then each musical style should give rise to differences in the perceived
characteristic of the bar, meaning that the perception of the bar should be related
to the perception of the music.

Another idea is that if music can influence purchase intentions, then the different
musical styles should give rise to differences in the maximum amount that
customers are prepared to pay for the list of items.




The Effects of Music on Atmosphere in a Bank and a Bar                                5
Dr Adrian C. North, David J. Hargreaves and Jennifer McKendrick
Summary Claire Wells, PRS
July 2004
The Study
The second study took place over nine days, in a bar. Customers were also asked
to rate the bar and music on eleven adjectival scales.

peaceful                 invigorating              tacky              intelligent
exciting                 sophisticated             youthful           liked
hostile                  trendy                    fresh

The study investigated the effects of background music on the atmosphere of a
commercial environment. The sample 328 members of the general public were
recruited by approaching them at their tables and asking them to complete a
questionnaire about the bar. Responses to the questionnaires indicated that these
people visited the bar on an average of 3.47 days per month.

The 90-minute tapes were played through the bar's high quality public address
system at both foreground and background level. For this study classical music
and contemporary British pop where used. Below is a selection of the music
played. (For full listing please refer to actual study)

Classical music                                    Contemporary British pop
Minute Waltz ­ Chopin                              Ten Storey Love Song ­ The Stone Roses
Swan Lake ­ Tchaikovsky                            Disco 2000 ­ Pulp
Air on a G String ­ Bach                           Sun Hits the Sky - Supergrass
Cello Concerto ­ Elgar                             The Riverboat Song ­ Ocean Colour Scene

They were also presented with a list of items available to buy from the bar and
asked to state the amount that they would be prepared to pay. Customers were
also asked to rate the characteristics of the music/no music played using the
same adjectives.



The results
The rating of the bar provided clear evidence that different musical styles and
also the volume of the music influenced customers' perception of its atmosphere.

Evidence was also provided that the nature of customers' perceptions of the bar
was related positively to their perception of the music. For example, the more the
customers perceived the music as being `invigorating', the more the bar was also
perceived this way.

Estimates of the price they were prepared to pay, and the specific effects that the
musical style and volume had varied at different times of the day. This leads to
the idea that tailoring your music policy to suit your audience makes good
business sense.




The Effects of Music on Atmosphere in a Bank and a Bar                                6
Dr Adrian C. North, David J. Hargreaves and Jennifer McKendrick
Summary Claire Wells, PRS
July 2004
Conclusion
Overall these studies suggest that music can be used to differentiate two
otherwise similar stores by producing variations in their atmosphere. Perhaps
these variations in atmosphere could be used to attract different types of
customers.

Within this report several studies have been outlined detailing that the effects
upon a store and store image are related to:

    ·   patronage frequency
    ·   money spent
    ·   store choice
    ·   brand loyalty
    ·   promotion sensitivity
    ·   price sensitivity
    ·   response to new brands

As the present results demonstrate that music may affect the atmosphere of an
establishment, it seems reasonable to suggest that it may consequently influence
the variables above too.

The results of the research on the effect of music on customers' estimates of the
maximum amount that they would be prepared to pay suggest that music could
be a factor in determining pricing policy.

From this research it is clear that music should be seen as a feature of an
establishment. It should be used to create the right atmosphere for the business
and therefore pull in potential customers who may increase profits. Anyway that
you look at it, this research proves that music deserves to be considered carefully
as a potential business tool.

If you would like to see a full copy of the report please contact PRS Marketing on
0207 598 3718.




The Effects of Music on Atmosphere in a Bank and a Bar                               7
Dr Adrian C. North, David J. Hargreaves and Jennifer McKendrick
Summary Claire Wells, PRS
July 2004