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Purpose

The purpose of this paper is to examine the effect of the physical environment of night markets in Taiwan, mediated by “renao” (translated as bustling with noise and excitement) on need fulfillment and shopping satisfaction.

Design/methodology/approach

Grounded theory, interviews and observation in Study One identify concepts important to understanding why consumers shopped in night markets. Study Two employs a survey method to test findings from Study One concerning relationships between fulfillment of social and hedonic needs, physical factors and renao on consumer perceptions of the night market.

Findings

This paper suggests dense physical environments of night markets serve needs of consumers in cultures with an interdependent self‐concept by creating renao. The physical environment impacts the social and experiential needs fulfilled by shopping there, ultimately affecting satisfaction with and use of the market. They also find the dynamics of renao in a collectivist society act as a mediating factor in this process.

Research limitations/implications

The experience of being around many people creating bustle and excitement in the retail environment is important to need fulfillment and satisfaction of shoppers in this collectivist culture. Future research could expand to other collectivist cultures and compare results with those for shoppers in individualist cultures.

Practical implications

This research will help those in tourism and hospitality planning understand how socio‐cultural norms influence use of retail space and leisure shopping satisfaction.

Originality/value

This paper provides evidence that consumers in collectivist cultures may be more attracted to densely concentrated retail spaces.

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