Music is a constant in physical retail and hospitality environments, yet many operators still treat their soundtrack as incidental rather than deliberate. 

New research covering Australia and New Zealand – created by Inside Retail and OneMusic Australia – suggests that this casual approach can make or break customer behaviour, brand perception and sales.

The report is based on responses to a survey of 1250 Australian and New Zealand consumers across the retail, hospitality, and service sectors, undertaken last December. It examined how in-venue music affects customer decisions. The findings show that sound exerts measurable effects on whether customers stay, how long they remain, how much they spend and how they judge a business, with significant implications for business owners and operators.

Music affects key commercial behaviours

Across both markets, around 40 per cent of customers report leaving a venue because of the music. Conversely, around half say they have stayed longer when the soundtrack felt appropriate for the environment. These patterns were consistent in both countries, although Australians generally reported stronger reactions in both directions.

Longer dwell times are associated with increased browsing and a higher likelihood of purchase, while walkouts result in immediate commercial loss. Younger consumers were more likely than older groups to report behavioural changes in response to music, especially in categories targeting Gen Z and younger Millennials, such as fashion, casual dining, and lifestyle concepts.

Contrary to some expectations, silence was not viewed favourably. A notable share of respondents described completely silent spaces as uncomfortable or flat, suggesting that not playing music may be perceived as a negative design choice rather than as neutral.

Licensing influences trust

Music licensing is often treated as a business compliance obligation, but research suggests it also affects brand perception. A majority of consumers in both markets are unaware that music licensing is required in business settings. However, those who see visible proof of licensing view it as a positive trust signal, associated with professionalism and fairness.

Conversely, a notable group, especially older consumers, say they would view a business negatively if it appeared unlicensed. This positions compliance as a reputational consideration as much as a legal one.

Comfort overtakes high energy

The survey revealed a clear preference for soundscapes described as ‘welcoming’ or ‘calm’, rather than high-energy or aggressive. ‘Lively’ settings are less frequently desired outside of explicitly youth-oriented brands, suggesting that defaulting to high-tempo music may not align with broad customer preferences.

Volume was identified as the most critical factor shaping first impressions of a space, more so than genre or familiarity. Customers in both countries, and particularly in New Zealand, notice loudness levels immediately. Poor volume control was often cited as a primary cause of negative experience feedback.

Genre expectations are defined and consistent

Consumers hold specific expectations about the type of music suited to particular categories. In premium settings such as fine dining and high-end retail, classical and jazz scored highest for appropriateness, and mainstream pop was widely rejected as inconsistent with quality positioning.

Youth fashion and streetwear categories showed demographic differences. In Australia, mainstream pop was a strong preference, while in New Zealand there was a stronger inclination toward hip-hop, R&B, and local or alternative artists.

Wellness spaces such as spas and clinics were associated with ambient or classical genres, reflecting a need for music that supports relaxation rather than excitement. Supermarkets and casual dining environments tended toward mainstream and familiar tracks, with New Zealand respondents placing greater value on local content than their Australian counterparts.

These genre patterns matter because misalignment was strongly associated with perceptions of a brand as disconnected, unprofessional or inauthentic.

Music quality is noticeable and judged

The research highlights that younger consumers are adept at distinguishing between familiar artist tracks and generic stock music. Genres perceived as filler, often royalty-free or generic background tracks, were associated with poor quality and low effort, especially among under-45s.

This quality perception carries reputational risk. Operators that invest in physical design, product presentation, and service but use generic playlists may inadvertently signal inconsistent quality standards.

What operators should take from the data

The research establishes that music is not incidental: It influences behaviour in measurable ways that correlate with financial outcomes. It affects dwell time, customer comfort and loyalty perceptions, variables that matter for conversion, repeat visitation and brand reputation.

This summary captures the principal consumer insights. The full report, structured with detailed breakdowns by category, market and demography, offers actionable frameworks and sector-specific expectations for businesses operating across Australia and New Zealand.

For operators rethinking experience strategy, the research underscores that music warrants structured attention alongside visual merchandising, service design and environmental controls. Sound choices affect not just atmosphere, but customer behaviour and brand perception. 

• OneMusic Australia is a joint initiative between APRA AMCOS and PPCA, giving businesses easy, legal access to use music protected by copyright. Download the full report here.