UA-29869588-1
Introduction
According
to many researches a brand is one of the most important sources of acquiring
competitive advantage. This attitude is confirmed by the fact that there are
many scientific works on store image. As Hirschman (1981) pointed out, the
understanding of how consumers acquire cues from shopping experiences,
advertising, peer report, and so forth, and how these cues are translated into
a cognitive con- figuration which forms their store image. According to marketing theoreticians a strong
private store image is one of the factors that determine consumer satisfaction
and their loyalty to a certain store. Performed scientific research confirms
that there are links between a private brand and a store’s image. In the
scientific works of Lindquist (1974), Bearden (1977), Ghosk (1990), Chang and
Tu (2005), and Pajuodis (2005) factors that influence store image are
distinguished. But it must be emphasized that the above-mentioned scientists
distinguish different factors that determine a store’s image.
This
paper consists of private labels and its impact on store Image. Chang and Tu
(2005) assessed only four factors that influenced a store’s image in their
work: infrastructure, services, provided by the store, store activity, and
convenience. Vahie and Paswan (2006), summarizing the results of theoretical
and empirical research of Martineau (1958), Lindquist (1974), Doyle and Fenwick
(1974), Bearden (1977), Chowdhury et al. (1998), Burt and Carralero-Encinas
(2000), Kim and Jin (2001), Chang and Tu (2005), state that six factors that
influence a store’s image are: services, convenience, quality, product variety,
product price, and store atmosphere.
A
strong private label brand has a big influence on the store image and strategy.
There are various conceptions of a brand in scientific literature. Each author
proposes and interprets conceptions of a brand differently, but most of them
agree that it is a sign, given to a certain company or a certain product (or
product group) that is easily recognizable by consumers. Vahie and Paswan
(2006), based on Aaker (1991), Keller (1993, 2003), Faircloth et al. (2001),
state that it is very important for store managers to create a positive brand
image, because brand image and its value are directly related. Scientific
research, performed by Keller (1993), Faircloth et al. (2001), Ailawadi et al.
(2003), emphasize the importance of a private brand image for increasing
consumer loyalty. Batra and Sinha (2000) confirm that in order to retain loyal
consumers it is necessary to strengthen the image of a private brand.
According
to Janonis and Virvilaite (2007) consumers identify a brand with a company’s
intangibles that need to be managed for effective use. According to Keller
(1993, 2003) a brand image as well as a private brand image is defined as a
whole of associations in a consumer’s consciousness, linked with the product,
that determine brand perception. These associations related to a store image
encompass many factors.
Definitions of Store Image
Store
Image is defind by differently by many authers. Assael (1992, p. 633) states
that the ‘… measurement of store image assists retailers in determining their
competitive strengths and weaknesses. Store image is built up through
experience and totally conceptualized or expected strengthening that urge
consumers to purchase at the specified store
Kunkel & Berry (1968). Store
image is a complex of attributes that consumers feel about the store and it is
more than a simple sum of objective individual attributes since parts of
attributes interact in consumers’ minds Oxenfeldt (1974). Store image means a
complex in total dimensions of store attributes that consumer feel and a
complex means that store image consists of various attributes Zimmer & Golden (1988). Store image
consists of functional and emotional attributes, these are organized in the
perceptual structures of purchasers, and the structures are expectation on
overall policies and executions of retailers. Berman & Evans (1995).
For
more than forty years, academics have assessed the influences and antecedents,
of retail image. Among the many areas of consideration is the conceptualization
and operationalization of the construct’s measurement. Studies have assessed
and developed measures based on multi-attribute, multi-dimensional definitions,
as well open-ended and observational designs. Through in depth literature
review, the authors identify seven reoccurring dimensions that have been
hypothesized to represent different facets of the image construct. Further, it
is demonstrated that no conceptualization to date has incorporated all of these
dimensions into an operationally defined measure. This study proposes a new,
seven-dimensional definition for retail image that is both consistent in
concept and operation.
Merchandise
The
attributes of merchandise that are included in the current study are
merchandise assortment, merchandise style, merchandise price and merchandise
quality. Thang and Tan (2002) included selection and assortment, styling and
fashion as attributes, while Birtwistle et al. (1999) included assortment,
merchandise quality and merchandise style. According to Collins-Dodd and
Lindley (2002), as well as Thang & Tan (2002), merchandise is considered
the most important factor contributing to consumer store preference. This view
is supported by Birtwistle and Shearer (2000), Collins-Dodd and Lindley (2003),
Sullivan et al. (2002) and North et al. (2003), who found that merchandise has
a significant influence on brand perception and store choice across consumer
segments. Brand and product assortment are part of the assortment strategies
followed to satisfy consumer needs and influence brand perception. Consumers
tend to seek stores with a greater assortment of merchandise to satisfy their
needs (Sullivan et al., 2002). But brand assortment is also a strategy to build
a store’s image through developing a private brand label (Ailawadi &
Keller, 2004). According to Ailawadi and Keller (2004), the consumer segment
most likely to buy private brand labels are price sensitive, of middle income,
and educated. This then indicates that merchandise strategies should be
formulated on the basis of target market demographics, as it influences
consumer preference and patronage behaviour.
Promotion
Integrated
Marketing Communications (IMC) focuses on building a clear position and image
through integrated marketing, with advertising being an important channel
(Kliatchko, 2005). Sales incentives, displays and advertising are attributes of
promotion. Form a part of IMC; by
incorporating promotion into the IMC strategy the gap between promotion and
sales can be eliminated, thereby increasing profit (Smith, Gopalakrishna &
Chatterjee, 2006). The goal of IMC is to build a stronger brand and increase
sales through the influence of consumers. Promotions are a precondition of
brand recognition and enhancement, which influence sales (Ratnatunga &
Ewing, 2005). One of the major changes in marketing includes new technology in
which advertising is consumer focused to nurture customer satisfaction and loyalty
(Kliatchko, 2005). The promotions dimension is therefore a significant tool in
the IMC process because of its proximity to consumers and its direct influence
on consumer behaviour. Although promotion is viewed as a positive stimulus by
management, a study of patronage motives and product purchase patterns found
that special events/exhibits and promotions were among the least mentioned
motives for product purchase, and were therefore indicated as less important
that other store image attributes (Yavas, 2001). This is in contrast to other
research. Paulins and Geistfeld (2003) reported a distinct difference between
highly educated and less educated consumers in the response to advertising. The
fact that educated consumers are more selective makes them more difficult to
entice through advertising. Thang and Tan (2003) found that promotions have a
significant influence on consumer preference. Consumers have to be constantly
attracted by advertising to stimulate interest and create store awareness. But
consumers are exposed to a large amount of information and advertising
messages; therefore an integrated and consistent marketing communication
strategy is critical for strengthening the message which marketers strive to
send. A strong communication strategy is vital in competing in the marketplace
and in managing the corporate identity, while promotions provide the key in
conveying information to consumers (Markwick & Fill, 1995). Lincoln and
Samli (1981) assessed the influence of actually promoting store image attributes.
They found that consumers who had seen the relevant advertisements gave higher
image scores than the consumers who did not see the advertisements. Du Frene,
Engelland, Lehman and Pearson (2005) found that consumer-centric advertising
through interactive e-mailing changed consumers’ attitudes towards the brand,
which, in turn, affected intention to purchase. According to Sen, Block and
Chandran (2002), displays do not hold high incentive value for consumers, but
rather act to make customers aware of the possible purchase and usage of the
merchandise. Window displays, for example, relay information before a client
enters a store and contribute to store entry and product purchase. It is
evident that the expenditure on promotions should be viewed as a contributing
factor to building store image and subsequent profit.
Convenience
Convenience
is a vital part of society at present. With expanding internet facilities and
individuals spending more time at work and less time at home, time spent on
shopping is an expensive resource. Chowdhary (1999) notes that convenience is a
specifically desirable characteristic for older consumers. Hyllegard et al.
(2005), however, found that convenience was less important to consumers aged 56
to 88, but very important to the age groups between 18 and 55. They furthermore
established that the preference for convenience differed across nationalities
(Spanish, European and American consumers). They, however, did not find any
gender differences in terms of preference. In a study by Kim and Jin (2001)
convenience was cited as a reason for consumers preferring multi-national
discount stores over national stores. Store hours comprise another aspect of
convenience. Hyllegard et al. (2005) found that store hours are less important to
older consumers, because older consumers have more time to shop. They concluded
that store hours and convenience have the strongest influence on patronage
behaviour across nationalities. Retail stores focusing on younger markets
should therefore incorporate a focus around convenience and extended shopping
hours. This greater concern identified in the younger market could be due to
changing lifestyles and busy social lives (Hyllegard et al., 2005) A vital part
of convenience is site selection/ location planning, because it influences
parking, location and transportation. This is a significant decision because it
cannot be altered once made. Location, transportation and traveling time
influence the consumer market patronizing the store and, inevitably, sales
(Wood & Browne, 2007). Thang and Tan (2003), for instance, note that
retailers are chosen on the basis of accessibility, ease of transportation and
time duration of traveling. They found that accessibility of a store is rated
second to merchandising and that even stores located on the same street still
engendered varying perceptions with regard to accessibility. The smallest
distance can however influence a store’s success or failure (Wood & Browne,
2007). The importance of traveling distance in influencing intention to remain
loyal to a store was noted by Miranda et al. (2005). Newman and Patel (2004)
reported that, by focusing on features which influence the ease of shopping,
retailers are able to differentiate themselves from the competition. Koo (2003),
on the other hand,investigated the inter-relationships among store images,
store satisfaction, and store loyalty among Korean discount retail patrons, and
found that convenience has a direct and indirect impact on store loyalty, but
not on store satisfaction. This is contradicted by Chang and Tu (2005), who
found that convenience, has a direct relationship with customer satisfaction
and customer loyalty, as well as an indirect relationship with customer loyalty
through customer satisfaction. Retailers should therefore consider convenience
and its sub-dimensions carefully as this can help build a consumer base and
consumer loyalty.
Store Facilities
Facilities
refer to the provisions made to ease the shopping process and the
infrastructure that enhances the consumer’s comfort while shopping (Nevin &
Houston, 1980). According to Thang and Tan (2003), consumers tend to view a
store with good facilities in a favourable light. Consumers’ shopping
orientations determine their preference for facilities (Moye & Kincade,
2002), therefore facilities contribute to differentiate the retailer from its
competition. Features which could differentiate a store by easing the shopping
process are the availability of changing rooms, fast checkout facilities and
layout (Newman & Patel, 2004). These authors postulated that customers’
perceptions and behaviour could be altered through any small change made in
store image, specifically store entrances, checkouts and queuing. However, if
inappropriate, these features could also create an unwillingness to remain in a
store. Lee, Ibrahim and Hsueh-Shan (2005, p. 333) investigated the importance
that male consumers place on certain attributes and found a friendly design
layout to be one of the few variables obtaining high scores, ‘… which is not
difficult to rationalize given [its] prominence in shaping the retail
environment and…enjoyment level’. Kent (2003; 2007) focused on the design
behind a store image. This 2003 study focused on the design of the brand with
the retailer environment centered on consumer buying behaviour. He found that
the interior design as well as the functional elements enhance the brand
identity and create a strong experience. The focus of design therefore is also
on the facilities now, not only on merchandise and store fronts. Kent (2003)
concentrated on factors such as the ability to actually reach products, the
significance of floor space and the maximization of sales space by arranging a
lot of stock in a manner that seems spacious through the use of open aisles.
Hence, by changing a store’s style of layout, specifically, facilities can
create and support the brand identity. A 2007 study by Kent extends this idea
of design to focus on stores and facilities that the store could offer. The
space chosen for a store ideally is what will affect the layout and store
appearance; the decision, for example, cannot solely be based on location. Even
though the importance of facilities is established, Marianne (2003) reports
that fitting rooms and fitting room lighting have not received enough attention
over the years, due to the fact that management perceive these aspects to be
less important to customers.
Store Service
Service
is a crucial element of a brand; this includes staff-customer interaction
(sales) (Newman & Patel, 2004). As shown above, sales personnel are
responsible for the social interaction with customers through this interplay
between service and sales personnel. Service builds customer relationships and
leads to positive-word-of- mouth and customer loyalty (Newman & Patel,
2004). Customers’ perception of social cues, which includes service, improves
their perception of merchandise (Hu & Jasper, 2006; Newman & Patel,
2004). Teller, Kotzab and Grant (2006) found that sales personnel service greatly
affect store choice, even more than modern services, such as home delivery.
Service by sales personnel through knowledge and courteousness is emphasized by
Berman and Evans (1995). Good service therefore contributes toward forming a
positive store image. Thang and Tan (2003) concluded that stores that provide
good service leave shoppers with a more favourable perception which promotes
repeat visits and has a positive impact on consumer purchase behaviour. Miranda
et al. (2004) underscored this by concluding that intention to remain loyal to
a store is influenced by several factors, including service. Hellier et al.,
(2003) also showed that customers’ repurchase intention is influenced by
service. While the repurchase intention is thus influenced by service quality,
Wirtz et al. (2007) stated that the effect of service on consumer behaviour is
moderated by emotional arousal. Huddleston et al. (1990), found that mature
female consumers’ lifestyle characteristics influence their preferences for
services. In contrast, Oates et al. (1996) showed that the perception of the
importance of the service dimension is not notably different among elderly
consumer segments on the basis of lifestyle. Research results, however,
highlight the fact that management should take note of the impact that service
can have on consumer behaviour and that the preference for service is
influenced by independent consumer variables.
Store Atmosphere
Store
atmosphere plays a vital role in the consumer’s experience. Atmospherics
involve a conscious designing of space to affect customers’ sensory experience.
It mostly has to do with the ‘spatial aesthetic’ features of the store and
serves as a ‘silent language’ in communication to consumers (Kotler, 1973-1974,
p. 48 & 50). These sensory experiences affect a person’s emotional state
and therefore the way in which product information will be evaluated. A
positive store experience enhances satisfaction and will lead to increased
shopping frequency, and therefore lead to increased sales (Koo, 2003). Store atmosphere,
specifically in reference to design and ambient factors, is a significant
variable as it influences consumer preference, interpersonal service quality,
merchandise quality and monetary price perception, as well as shopping
experience cost (Baker et al., 2002; Thang & Tan, 2003). Furthermore,
Newman and Patel (2004) reported that store atmosphere is one of the crucial
factors and determinants of store choice. Richardson et al. (1996) found that
the aesthetics of a store can improve the evaluation of the quality of products
by customers. Samli et al. (1999) included the attribute interior décor in
their study on the contrast between management and customer perceptions of
store image. The results indicated that décor is perceived as slightly less important
by management than by customers. However, this attribute was included in their
service quality dimension with the notation that the retailer could very easily
exceed customer expectations through the use of these attributes. Terblanché
and Boshoff (2006) supported this by indicating that store décor is important
to the store environment as it is a controllable aspect that can contribute to
creating customer satisfaction through fulfilling expectations. This is due to
the fact that décor and popular music can align a store with its target market
(Newman & Patel, 2004). Smell (as part of store interior) is a very strong
emotional trigger. The sense of pleasant arousal derived from fragrance
increases exploratory tendencies behaviour (Orth & Bourrain, 2005). The
emotional experience is as important as the shopping experience, because
consumers have affective expectations too (Wirtz, Mattila & Tan, 2007).
According to Sway (2007), scent marketing can make a consumer feel comfortable
and put consumers in a good mood that could positively influence purchasing
decisions. Smell is a strong emotional trigger. However, Donovan and Rossiter’s
(1982) evaluation of the emotional states aroused by store atmosphere and the
effect on approach/ avoidance behaviour came to the conclusion that research on
store atmosphere does not achieve strong results because it affects an
emotional state which is difficult to verbalize and is transient, therefore
difficult to recall. Their research therefore proposed that store atmosphere
affects emotion and this, in turn, affects shopping related intention. This
research was extended by Donovan, Rossiter, Marcoolyn and Nesdale (1994), who
found that emotional state not only affects intention but actual purchase
behaviour as well. A positive emotional experience engendered by store
atmosphere will increase the estimated spending and time spent in the store.
According to Donovan et al. (1994), this is partly due to the emotional
variable being evaluated apart from cognitive variables, e.g. quality and price
perception. Wirtz et al. (2007) confirmed the positive effect of emotional
arousal congruence on in-store behaviours. Based on the expectations of the
target market, store designers should therefore make tactical decisions
regarding store atmosphere, in order to positively influence consumers’
in-store experience (Hartman & Spiro, 2005). From the above-mentioned, it
is clear that atmosphere is a significant tool, since it provides management
with the power to manipulate the effect of store environment on consumer
behaviour.
Store Brand
Store
image is considered an important factor influencing store choice and patronage
behaviour and has received increased attention from practitioners and academics
(Berry, 1969). Store image influences the way in which consumers evaluate and
choose a store (Kleinhans, 2003). Patronage behaviour is associated with acts a
consumer performs for the purpose of making a purchase from a store. The
identity of a store, presented in the store image, communicates useful
information to consumers that they utilize during pre-purchase decision-making
(North et al., 2003). Store image cues therefore influence consumers’
decision-making processes, which result in store choice (Baker et al., 2002).
Store image and store positioning also greatly predict store choice and,
ultimately, retail success (Baker et al., 2002). Knowledge about the influence
of store image perception on patronage behaviour may empower retailers to
design their stores according to the desired store image that could lead to
consequent store choice (Kleinhans, 2003). The relationship between store image
and patronage behaviour has been examined by numerous researchers. Results
indicate that a customer’s perception of a store influences store patronage.
Moye and Giddings (2002), as well as Moye and Kincade (2002), investigated the
effect of shopping orientation on consumers’ perception of store image and the
resulting patronage behaviour. Both studies confirmed that shopping orientation
indirectly influenced store choice through store image. Several researchers
also found that the importance that consumers place on store image attributes
influenced patronage behaviour (Shim & Bickle, 1994; Shim &
Kotsiopulos, 1992; Baker et al., 2002. Donovan and Rossiter (1982) suggested
that consumer behaviour is mostly due to emotional response brought about by
the store environment. In this scenario, it is then astute to not only assume,
but to know that the consumer’s affective state (mood) affects judgment or information
processing (Bakamitsos & Siomkos, 2005). A person’s mood can act as an
object or as a tool. When affective state is an object, it acts as a heuristic
cue and therefore bases judgment on heuristic cues and not on information. A
consumer’s mood therefore affects how the consumer evaluates, and a positive
mood is more likely to lead to a positive evaluation and thus store choice (De
Ruyter & Bloemer, 1999).
Store Loyalty
Customer
loyalty can be classified into brand loyalty, vendor loyalty, service loyalty,
and store loyalty (Dick and Basu 1994). With lack of consistency, marketing
researchers have defined customer loyalty. We can classify these definitions
into a behavioural approach, an attitudinal approach, and a combined approach.
Behavioural Definition Early studies on loyalty have been done on individual
brand which can be measured from panel data and brand loyalty largely was
understood as behavioural concept. They focused on observing and measuring the
continuation of purchases in the past (Brown 1952-1953). Kuehn (1962) used
stochastic approach to find behaviour of brand loyalty of customers. He saw
brand loyalty a function of purchasing history of customers. Lipstein (1959)
thought brand loyalty as a function of probability of purchase of the same
product or a function of time for a specific brand. Jacoby and Chestnut (1978)
summarized 53 early definitions of loyalty and made a conceptual definition.
According to their definition, loyalty is a biased behavioural reaction of
consumers in the choice of one among many alternatives in a period of time and
it can be represented as a function of decision-making process. Jeuland (1979)
also used stochastic model to define brand loyalty. In his study, it was
defined as long-term probability of choice or purchase ratio of a specific
brand among total product categories and such behaviour was named as inertia
