The main objective of this study is to develop and to test a comprehensive model that investigates the effect of shopping environment on consumption emotion, perceived value and behavioral intentions in tourism setting. The proposed model specifies the effect of environment perceptions on consumption emotions (pleasure and arousal), hedonic and utilitarian value, which in turn emotions and values affect tourist’s satisfaction and behavioral intentions. Data were collected through tourists who visited a tourist city by using cluster random sampling method. A total of 410 questionnaires were used for data analysis. Structural equations modeling (SEM) by using LISREL was performed to empirically test the relationships between the constructs of this research. Results show that environment has a positive and significant influence on pleasure and arousal. However, the effect of environment perceptions on behavioral intentions was not significant. In addition, results indicate that pleasure and arousal have positive and significant effects on tourist’s values. Findings also indicate that hedonic and utilitarian values had direct effect on customer satisfaction and the effect of satisfaction on behavioral intention was positive and significant. Finally, it suggests that service providers should focus on components of environment in a way that contributes positively in creating positive emotions in customers, which in turn consumption emotions enhance perceived value and positive behavioral intentions.