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CHAPTER 4

LITERATURE REVIEW

4.1 Positioning Strategies

John. P. Maggard [110] says that positioning strategy is a universal coverage of positioning.
It is not a single distinct concept but includes many closely related concepts. Maggard talks
about positioning as a conceptual vehicle, head on positioning, social accountability
positioning, inclusion of internal as well as external positioning as part of positioning
strategy.

Al Ries and Jack Trout said that to develop a positioning program, six critical questions must
be answered. They are;
• What position do you own in the mind of the prospect, now?
• What position do you want to own?
• Whom must you outgun to achieve that position?
• Do you have enough money?
• Can you stick it out?
• Does your communication match your position?
Table 4.1: Positioning Strategies

Dimensions Items/Statements

Top of the range Upper class, top of the range, Status, prestigious, posh

Service Impressive Service, personal attention, consider people as important, friendly

Value for money Reasonable price, value for money, affordability

Reliability Durability, warranty, safety, reliability

Attractiveness Good aesthetics, attractive, cool, elegant

Country of Origin Patriotism, Country of origin

The brand name Name of the offer, leaders in the market, extra features, choice, wide range

Selectivity Discriminatory, selective, high principles

Sources: Charles Blankson, Stavros P. Kalafatis, 2007

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According to Arnott [13] positioning is concerned with the attempt to modify the tangible
characteristics and the intangible perceptions of a marketable offering in relation to the
competition. Arnott’s definition is conceptual and it also has strategic implications and
capable of being operationalised. There are eight generic positioning strategies as stated by
Blankson & Kalafatis [30] as shown in table 1.

The implementation of Walters and Laffy’s [179] four groups of activities is considered as
positioning. Various positioning strategy descriptors identified by [156] are given below in
table 2. Levy and Weitz [104] consider retail positioning as a decision and implementation of
a retail mix to create an image of the retailer in the customer’s mind relative to its
competitors. Aaker and Shansby [1] claim that positioning decision is the crucial strategic
decision as it is highly important for customers’ perception decisions. Marketing program can
be aligned for consistency and support if there is a clear positioning strategy.

Table4. 2: Positioning Strategy Descriptors.

The store has a wide range of products

The Products The store sells high-quality products

The Store Format It is a high quality store


and Environment
The store attracts upper-class consumers

Customer Service It is pleasant to shop in the store

The store has a good atmosphere

Customer The store sells well known local brands


Communication
The store sells well-known foreign brands

Source: As adapted from Skallerud, Gronhaug (2009)

Aaker and Shansby [1] give six approaches to positioning strategy which are given as below:
• Positioning by Attribute - Associating a product with an attribute, a feature or
customer benefit.
• Positioning by Price/Quality - Price as a signal of quality to customers.
• Positioning with Respect to Use or Application –Associates the product with use or
application.
• Positioning by the Product User - Product associated with a user or a class of users.

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• Positioning with Respect to a Product Class -Positioning decisions involving product
class associations.
• Positioning with Respect to a Competitor - Making reference to competitors as the
dominant aspect of the positioning strategy,

Table 4.3: Approaches to Positioning Strategies


Positioning by attribute DLF Emporia ‐ Luxury brands Mall  
Positioning by price / quality Select Citywalk – Premium brands mall
Positioning with respect to use Metrowalk - Entertainment Mall
Positioning by the product user Sahara Mall for lower middle income
Positioning with respect to product class Ansal Plaza – Factory outlet mall
Positioning with respect to competition Ambience mall as the longest mall
Source: As adapted from David Aaker and Gary Shansby (1982)

Retail Repositioning Strategies

Corstjens and Doyle [39] discuss about retail repositioning strategies. They say that
repositioning is essential to maintain competitiveness in a rapidly changing environment. A
retailer’s existing positioning base is continuously diluted by maturing markets and
aggressive competitors. According to them, there are three types of repositioning strategies-
Zero, gradual and radical. In zero repositioning, despite changing environment, focus is on
the original target segment and competitive advantage. This retailer may soon close down as
the gap between customer’s wants and his offers gets large. The second type of
repositioning is small, gradual and a natural evolution into new merchandise, higher
assortments or new methods of presentation.
Table 4.4: Repositioning Strategies for Malls

Repositioning Strategy Mall

Zero Positioning Pyramid closed down

Gradual Positioning EDM gradually moving from generic to entertainment.

Radical Positioning In future radical change for non performing malls.

Source: As adapted from Retail Repositioning Strategies by Corstjens and Doyle (1989)

The third type of repositioning is radical – a shift into new types of stores, merchandise or a
total re-presentation of the stores. Such a situation arises when there is a sudden shift in the

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retailer’s marketing environment or when management fails to gradually reposition over a
period.

4.2 Definition of Positioning

Positioning is defined by various authors in different ways and the prominent among them are
discussed in this chapter. Philip Kotler [95] says that positioning is the act of designing the
companies offering and image to occupy a distinctive place in the minds of the target market.
Another definition given by Al Ries and Jack Trout [139] in their book “Positioning: The
Battle for your Mind”, says, “Positioning is what you do to the mind of the prospect; you
position the product in the prospects mind”.

During the boom days of mall development, strategic positioning focussed on the shoppers.
Feinberg and Meoli [55] opined that even though malls are important, academic journals do
not give much important to positioning of malls, which holds true for India.

According to Baker and Funaro (1951) positioning of a mall depends on the number of
households and size of the catchment area size along with the demographics of the
households. Casazza (1985) who made an analytical process for mall positioning claimed
that as population grows a shopping mall can attract customers from the competition. If the
positioning of a mall is good, shoppers from outside the catchment area can visit the mall.

Apart from price, location and merchandise the factor which affects that customer pull
towards a store is the store image as in the mind of the customer Martineau’s [118]. Many
studies include store image, customer psychographics and lifestyle as part of multi-attribute
choice theory.

Yiu and Yau [185], take the analogy of an ecosystem to describe the positioning of a mall.
They claim Shopping malls prey on retailers through retail space leasing and retailers, on the
other hand, prey on shoppers by selling goods and services. In other words malls are
dependent on the retailers who in turn are dependent on the shoppers.

According to the definitions given above positioning is more concerned with the consumer’s
perception of the product offer than the offer as such. Another definition given in the context
of mall by Jones LL and Meghraj [83] takes completely opposite view wherein mall
positioning is more concerned with the offer itself and less with the perception of the offer.

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According to Jones Lang Lasalle Meghraj Report [83], “Positioning of a mall refers to
defining the category of services offered based on demographics, psychographics, income
levels, competition in neighbouring areas”. It has been observed in several studies on the
issue of mall positioning conducted in India that success of mall depends on its positioning
For example, if the market research indicates that the average number of households living in
a particular area belongs to the upper middle class then a high-end retail mall would suit the
location. An example of this practice can be seen in the malls, Select City Walk in Saket and
DLF’s Emporio in Vasant Kunj.

The above definition given by Jones, et. al. is service oriented and is not a comprehensive
one. For this reason, the Suresh Sannapu and Nripendra Singh [149] have identified a need to
revisit the definition based on the theoretical concepts of positioning, mall, retailer, shopper
and their expectations from each other. According to them positioning of a mall refers to the
inter-dependency of the three stakeholders – mall, retailer and shopper on each other, in order
to fulfil each other’s expectations, leading to the satisfaction of the shopper resulting in the
profitability of the retailer ensuing success of the mall.

In contrast to product positioning, a mall positioning is inherently dependent on its tenant-


mix, atmospherics, leasing strategies…and with the same kind of parameters it cannot occupy
another position in the mind of the consumers. For a consumer product, positioning may lay
more emphasis on communicating the value proposition. For instance a Cola can be for the
youth, for the fun loving or for those who like adventure. The ingredients of the product may
be almost the same. But it means different things for different segments.

Positioning of a consumer product is quite different from the positioning of a mall. When we
look at a mall positioning, it is not only concerned with the value communication, but more
concerned with the value creation. What is the value you propose to give to the retailers?
What is the value you propose to give to the shoppers? What is it that the retailer or shoppers
gain by accepting your offer? Are some of the pertinent questions, which need to be
answered.

This model is named as ‘Dual Expectancy Model’ as each stakeholder has dual expectations,
in the sense they have expectations from each of the other two stakeholders. As the name
suggests it refers to the dual expectations of the three essential elements involved in the mall
positioning – Mall, Retailers and Shoppers. There are expectations from each other, which
have been mentioned in the figure-1. Due to these expectations, to define the positioning of a

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mall only from shoppers perspective will not be adequate. Thus, it is not just a function of
shopper’s profile (Demographic, psychographic and income level etc.) and competition from
neighbouring areas as mentioned by Jones et.al and others in previous studies.

The three stakeholders in a mall have expectations from each other. The extent of success of
mall positioning depends on the extent to which these expectations are met. The expectations
of each stakeholder from the others are given below.

.
MALL EXPECTATIONS FROM 
RETAILERS 
To relate with the mall positioning 
To buy/lease space (shop)  MALL EXPECTATIONS FROM 
RETAILER’S UTILITARIAN 
To pay adequate amount  SHOPPERS 
EXPECTATIONS  
To pull shoppers  To relate with the mall positioning 
To provide appropriate zone 
To satisfy shoppers  To enjoy the mall experiences 
To provide supportive lease/rent 
To participate in mall promotions 
To sell appreciable property  
To visit the mall 
To provide footfall suitable to it 
To purchase from the mall stores 
To provide good tenant mix 
To spread good word of mouth  
To provide good atmospherics 
To recommend the mall 
 
To be loyal to the mall  
MALL

RETAILER 
SHOPPER 

SHOPPERS’ EXPECTATIONS FROM 
RETAILER  
RETAILER EXPECTATIONS 
To provide value for money  SHOPPER UTILITARIAN & HEDONIC 
FROM SHOPPER 
To provide good service  EXPECTATIONS  
To visit the store 
To provide wide range of products  To provide clear positioning 
To purchase from the store 
To be fair in dealings  To provide utilitarian value 
To spread good word of 
To have ease in finding   To provide hedonic experiences 
mouth  
To recommend the store  To provide appropriate tenant mix 
To be loyal to the store  To provide good atmospherics 
To generate life time value   To provide adequate parking, 
hygienic premises, convenience, 
safety and security 

Figure 4.1: Dual Expectancy Model

(i)The mall has expectations both from retailers and shoppers. From the retailers they expect
that they pay lease/rent amount in adequate amount and in time. The also expect that the

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retailers attract customers to the mall and satisfy their shopping needs. From the shoppers,
they expect that they visit the mall, buy from the stores, enjoy their shopping experiences,
and recommend the mall to other people.

A mall therefore needs to identify the value proposition. For a developing value proposition,
your offer needs to provide a value which the competition is not able to give. Understanding
how the value will be delivered to the retailers/shoppers and for which it is meant for is also
important. For examples, DLF Emporio has to do a lot of convincing to the international
brands to come and set up their shop in India. Even after so many years some of them are yet
to set up their shops in the malls after giving their consent. Therefore for these retailers, either
the value proposition is not attractive or the mall has failed to communicate it to them. Again
positioning is not a onetime activity. As the market conditions change one may have to
change its positioning as well. Many malls in U.S. are completely turning into entertainment
centres at the end of their lifecycle. Having observed the existing malls, as the new malls are
coming up with much better offers, the older malls need to reposition themselves for survival.
Hence mall positioning is a continual activity which needs to respond to the continuous
changes in the market.

A mall provides food (utilities) to shoppers by different positioning strategies, which in turn
attracts retailers to the field. Therefore, the three stakeholders form a very interesting
symbiotic relationship, which results in a dynamic equilibrium of the ecosystem.

The survival of a particular retailer is determined by the characteristics of retailers like type
of merchandise, pricing, brand name etc., also by the characteristics of shoppers and
cooperation among retailers in the mall. To feed the retailers, mall has to provide services to
the shoppers, who intern attract retailers to the mall. Mall operators therefore need to
strategically select the right kind and mix of retailers and target shoppers. Though Yiu & Yau
[185] and others have conceptualized mall positioning and developed constructs in their own
context, as mentioned above. The Interdependency Expectancy model is comprehensive in
the sense, it takes into consideration all the expectations and fulfilment of these expectations
by the three stakeholders in the model. As the model is complete in the conceptual stage, the
next stage is taking it for empirical testing. Some of the observations in the retail scenario
strengthen the conceptual model. For example, Catmoss, the kidswear outlet on the 2nd floor
is closed as it could not sustain competition from Liliput which is located in the ground floor
adjacent to the atrium; Proliant at EDM which used to sell body lotions is also closed because

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the mall could not attract the high end customers for whom the products were targeted at.
Dollar store located in the basement of Pacific Mall was closed down because of competition
from a much better located Store 99 at first floor. Store 99 also has a wider range of
merchandise. These illustrations strengthen the view of the authors that, somewhere the
expectations of the stakeholders (in this case retailer) are not met by the other stakeholders
(malls in this case) and if this happens in a majority of the cases, the malls is bound to make
losses.

A successful mall positioning strategy should be beneficial to the mall developers, retailers in
the mall and shoppers. It will include attributes like allocating space to retailers in the mall,
choice of leasing or selling, and attributes like size of store, type of floor and location/Zoning
(centre, corner, street side, near atrium, across the main entrance etc.) on the floor is of
immense importance.

Mall positioning predominantly needs to focus on the specific location according to the
merchandise and visibility to the shoppers. A good mall positioning needs to include decision
regarding physical location to generate footfall for that retailer, as there is a vast difference
between having footfall in the mall and footfall in majority of the retail outlets. The main
reason for not having this is the inappropriate location of the retailer in the mall as per the
nature of the merchandise.

Another important dimension to mall positioning is leasing strategy. A glance to the


positioning of malls in India as per the leasing Strategy is that less than 4% of the malls
follow theme based positioning eg. Gold Souk, Gurgaon, while the remaining 96% are
tenant-mix based, out of which 90-95% follow Anchor-tenant based leasing strategy.

The research looks at the current positioning strategies of malls in India and hypothesizes that
the strategies are outdated and far from the reality of the retail industry which it is undergoing
at present in India. While a few malls are positioned well, there are many whose
differentiation is not discernable. As increasing competition cannot be handled with a ‘me
too’ strategy, those who cannot differentiate are destined to perish. This research is intended
to help all three stakeholders in the system-mall management, retailers and shoppers. The
work having started from the literature review, looked at the current definitions of mall
positioning, found them to be inadequate and more suited to a consumer product and less to a
mall.

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4.3 Image vs. Positioning
In early 1960s, positioning referred to simply placing or locating. It became popular in
marketing in 1970s in advertising and promotion [110] Positioning means different things to
different people, to some it means the segmentation decision, to some it is an image question
and to some others it means selecting product features to be emphasized [1]. Alpert and Gatty
[4] described consumers in terms of their age, income, family size, usage and perceptions
about a brand. Product positioning can be found using this as they define positioning as
consumers perceptions of various brands and how consumers of each brand differ from the
other. In retail, positioning refers to the market segment served by a retailer and the
perception of the differential advantage offered [39].

Andreas Herrmann and Frank Huber [70] in 2000 defined positioning inclusive of a place , a
rank and a mental attitude (consumer attitudes – the cognitive, affective and action
tendencies) toward a brand. In other words product positioning means the place it occupies in
a market.

Victor Gruen is credited with creating the first mall in 1950. Now things have completely
changed from a mall having transformed from being a place of sameness and mass
consumption to a place that encourages social distinction [119]. This seems to have come true
in the case of malls in India today. Credited with generating more revenue than traditional
markets [149], today growing competition amongst them is making malls to look for
distinguishing themselves from other malls. Initially a shopping centers’ attractiveness to a
consumer depended on the size of the centre and the distance from the consumer’s residence
to the centre. Subsequently retail image came up as determinant of retail centre choice. Today
developers are looking at store image to differentiate themselves from competition. A
favorable store image leads to customer loyalty and an unfavorable image leads to ignoring of
the store.. Store image as defined by Martineau included functional qualities as well as
psychological attributes. In India, shoppers have started identifying the malls based on
various functional attributes. Researchers across the globe have identified many attributes of
a retail store image. Eighteen attributes of a retail store image have been identified [159].
Image components such as price, quality, promotion, store atmosphere, institutional factors
assortment, clientele, physical facilities, convenience fashion, merchandise, service, , and
post transaction satisfaction have been identified as the factors. These store image attributes
influence customer satisfaction, customer traffic and rental rates.

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Image is abstract and includes past promotion, reputation, peer evaluation and reflects the
expectation of the consumer. To differentiate between positioning and image, David Aaker
and Gary Shansby [1] say that the term position differs from image in the sense that
positioning usually refers to the competition. For instance, when the Ambience mall positions
itself as the longest malls, it is positioning itself against the neighbouring malls.

As per Zimmer and Golden image descriptors used to express perceptions are based on
attributes, global images, store type labels, prototypes, products and behaviour. Zimmer and
Golden define store image as the image perceived by consumers. The consumer’s perceptions
of store image include both subjective and objective characteristics. Overall image of a retail
store is greater than the sum of its parts. In a similar way a store’s image is a combination of
factual and emotional material and also a combination of tangible and intangible factors [62].
As Subroto Sengupta [153] says, the brand image represents the all the impressions about the
brand in consumer’s mind. It relates to physical features, people who use it, functional
benefits, emotions and associations aroused by it, imagery and symbolic meanings. The brand
image is the sum of all brand perceptions. It is complex in nature.

Table 4.5: Chronological chart of the studies on Image and Positioning

S. No. Year Author Findings

1 1958 Martineau Image of a retail outlet as a combination of


functional and psychological attributes

2 1968 Kunkel and Retail store image as a total conceptualized


Berry or expected reinforcement associated with
that particular store

3 1969 Lewis Alpert Differentiation of brands based on


& consumer perceptions defined as Product
Ronald Gatty Positioning

4 1972 Al Ries and Positioning as a marketing strategy


Jack Trout
5 1974-75 Lindquist Store image as a combination of tangible
and intangible factors

6 1974-75 Oxenfeldt Store image as a combination of factual

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and emotional factors

7 1976 John. P. Evolution of Positioning meaning as


Maggard placing or locating to its relation
advertising and promotion

Positioning Strategy

Internal & External Positioning

Positioning as a conceptual vehicle

Head on Positioning

Social accountability positioning

8 1978 Dennis, H. Image as an abstract concept incorporating


Gensch the influences of past promotion, reputation
and peer evaluation of the alternative and
connotes the expectation of the consumer

9 1982 David Aker Positioning as


and Gary (i)a segmentation decision
Shansby
(ii) an image question

(iii) selection of product features to

Emphasis

10 1982 David Aker Difference between image and positioning.


and Gary Position implying reference to competition
Shansby
11 1982 Leonard Positioning as identifying and occupying
Berry an available position in the market

12 1987 Golden, Types of image descriptors used by


Albaum and consumers
Zimmer
13 1988 Zimmer and Store’s image as subjective and objective
Golden characteristics

14 1989 Marcel Positioning referred to retailer’s target

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Corstjens & market segment and its perceived
Peter Doyle differential advantage

15 1990 Subroto Image representing the essence of all the


Sengupta impressions or imprints about the brand in
the consumer’s mind.

16 2000 Philip Kotler Positioning as a company’s offer to occupy


a distinctive place in the target market’s
mind

17 2000 Andreas Positioning as a


Herrman & (i) place
Frank Huber
(ii) rank

(iii) mental attitude

18 2007 Jones LL & Positioning of mall referring to offer of


Meghraj category or services with respect to
Report demographics, psychographics, income
levels and competition.

19 2011 Suresh Positioning as fulfilment of the dual


Sannapu and expectations of each of the three
Nripendra stakeholders – mall developers, retailers
Singh and shoppers

It is evident from the Table 4.5, ‘Chronological chart of the studies on Image and
Positioning’ that the term Image was initially used by researchers and academicians for
defining the consumers overall perception especially in retail stores. The term image was
gradually replaced by positioning, which got the focus of researchers and was used
commonly. Also, it is observed that there is a significant difference from how positioning
emerged and understood in the 60’s and how it culminated to its present definition. Even now
the thin line between image and positioning is not understood by many marketers and they
are synonymously used by them. However, from the table few things are clear. Positioning
quite distinctly differs from image, in the sense, positioning has clear reference to

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competition where as image need not be so. For instance, DLF Emporia is positioned as
luxury mall; implicitly it refers to being high end compared to Ansal Plaza in Delhi and
Metropolitan Gurgaon. Similarly, Sahara mall in Gurgaon is positioned as a mall for the MIG
(middle income group) segment implicitly refers that customer segment which it caters to
differs from the segments targeted by Select City walk in Delhi or Ambience Mall in
Gurgaon. On the other hand image is a complex symbol. For instance, DLF Emporia has a
image of a mall with aesthetic design, spacious, premium merchandise, life style products,
good ambience, large visual displays, wide corridors, artful lighting, visited by the rich for
buying premium products.

Table 4.6: Mall Positioning Vs Mall Image

Mall Name Positioning Image


DLF Emporia, Luxury Mall Mall with aesthetic design, spacious, premium
Delhi merchandise, life style products, good
ambience, large visual displays, wide corridors
and artful lighting.
Sahara Mall, Mall for MIG A mall with high range of products, reputed
Gurgaon (Middle Income Group) brands, good parking, large atrium, reputed
anchor stores, reputed restaurants, good
discounts and multiplex

4.4 Mall Positioning and Consumer Decision Making

Before the malls have arrived on the shopping map, most consumers had to visit local kirana
store for convenience products and local markets or high streets (like those at Sarojini Nagar,
Lajpath Nagar and Janpath, high streets at South extension and Cannaught Place at Delhi) for
shopping products. When the first few malls have come up, many consumers have replaced
malls and other organized retail formats as shopping destinations to local markets and kirana
stores. The malls have given the consumer the convenience of shopping, food and also
movies at one place. The benefits from the malls were saving of time, effort, money, a
pleasant environment and good ambience to shop at. However as the malls have started
coming up in large numbers, they have also come with almost the same retail mix. In a poll
question asked by India Retailing “Shopping centres are still not unique when it comes to
retail offerings”, 68.22 per cent of the respondents said “yes”, whereas only 8.41 per cent said
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“no”. As shoppers have to make a choice, they have started patronizing a few malls and have
started ignoring the rest. The reason for this is the complexity involved in the image based
decision making in selection of these malls. Majority of the malls carried the same image in
that they offered similar retail mix in terms of shopping, entertainment and food. This
similarity in image based perceptions made the consumer decision making complex. On the
other hand, positioning based decisions were easier. For luxury goods you visit DLF
emporia, for gold products you visit Gold Souk and so on. In future there may be malls based
on categories (food and grocery or apparel), themes (entertainment, kids, women or family),
etc. Hence, the authors conclude that positioning will help consumers in simpler decision
making and will hence help in mall patronization. Fig. I a consumer decision making model
has been developed using illustrations from the retail sector (malls). Looking at the
tremendously growing organized retail in India, it is quite surprising that positioning concept
is hardly used by the sector, despite an impulsive need forced by the market environment.
Mall occupancy rates are decreasing day by day, vacancy rates are going up, decreasing
footfalls, increasing number of window shoppers, increasing cost of resources and services
and growing competition, it is inevitable to differentiate between image and positioning. A
proper understanding of the two can help to reduce the ambiguity in terms of developing a
sound strategy. There is a need here to differentiate between positioning and image. The term
image was initially used by researchers and academicians for defining the consumers overall
perception especially in retail stores. The term image was gradually replaced by positioning
.To differentiate between positioning and image, the term position differs from the older term
image in that it implies a frame of reference; the reference point usually refers to the
competition[6]. For instance, when Ambience Mall positions itself as the longest mall, it is
explicitly, or perhaps implicitly relates to other relatively smaller malls in the vicinity.
Positioning a mall refers to defining the category of services offered based on demographics,
psychographics, income levels, competition in neighboring areas and extensive market
research of the catchment. For example, if the catchment area has a majority of upper middle
class, then a high-end retail mall would suit the location. Select City Walk and DLF’s
Emporia in Delhi fit into this criteria. These malls have been specifically designed after an
extensive market research, based on the catchment area of South Delhi. The malls provide
high-end luxury products catering to the elite class (socio-economic classification A and B
consumers) residing in South Delhi. Positioning also refers to the location of the shopping
mall. A good location defined in terms of factors like ease of access via roads, good visibility,
etc. is considered as one of the prime prerequisites for a mall. Although other activities such
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as trade/tenant mix can be revisited or redefined, the location remains fixed, making it an
imperative factor for a mall.

Figure 4.2: Image based Vs Positioning based Consumer Decision Making

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4.5 Positioning and Shopper Satisfaction

As per Morschett, et al.[123] shopper satisfaction is affected by the physical environment of


the store, various procedures and operations, personnel and the core offer of the retailer. This
evaluation of the total retailer's offer in the customers mind is defined by Martineau [117] as
"store image”(which later has been replaced by positioning). Shoppers evaluate the whole
retailer offer by combining all the attributes described above in order to decide their degree of
satisfaction [56]

4.6 Shopper Satisfaction and Patronage Behaviour Intentions

Wakefield and Baker [178] say the decline in mall patronage is a result of many malls
looking similar and many stores offering the same merchandise. Shoppers are reluctant to
visit the weaker malls and are going to the destination malls which have the best stores [14].
Many shoppers make their mall choice based on mix of stores or the environment at the mall
[56, 57, 61]. Tenant variety, mall environment and shopping involvement have a differential
influence on desire to stay which in turn leads to repatronage intentions [178]. As per Kim &
Jin [91], shoppers shop at the stores where they can maximize their satisfaction keeping in
view both retail attributes and shopping costs. An empirical study by Kim and Kang [92]
suggested that shoppers consider money, time, convenience, low price, merchandise and
pleasure for store selection.

4.7 Measurement of Positioning


4.7.1 Scales of Measurement
As per Golden, Albaum and Zimmer [62] the approaches used to measure store image
include semantic differential scale, Fishbein Model, open-ended questions, multidimensional
scaling, Likert Scales and the Staple Scale. Most positioning studies use some version of
semantic differential. The key difference in case of multiple stores being compared on
multiple attributes is that either a store is measured on all the attributes followed by same
procedure for the next store or all stores are measured against a single attribute followed by
the measurement of all the stores on the next attribute and so on. Golden, Albaum and
Zimmer [62] have developed the numerical comparative scale which combine the advantages
of semantic differential scale and space, economy and cost efficiency of the graphic
positioning scale.

To measure store-image, the most common technique is to ask customers to rate stores on
pre-determined scales. Thus, the scales widely employed have been semantic differential

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scaling [125], 5- or 7 point bi-polar scales and also staple scales ranging from zero to ten
[67].

Fry and Claxton [59] in their study of cigarette smoking habits and preferences compare
semantic differential scale with non metric multidimensional scale and highlight the
advantages of the later. Assumptions of interval measures, missing dimensions and
inappropriate selection of choices of semantic differential scale can be overcome with the
help of nonmetric scaling. However interpretations of results of a semantic differential are
relatively straight forward compared to the non metric scales.

4.7.2 Perceptual Mapping

Henry Assael (1971) says that measurement of consumer perceptions enables assists
positioning of brands. Techniques like clustering and classification techniques have been
used to position products based on consumer perceptions. Perceptual maps can determine
gaps in the market in terms of unfulfilled needs of a particular group of customers and can
determine how brands can be repositioned once their perceived position is determined. The
changes in perceptions required can also be suggested.

In the study on Nestle, Henry Assael (1971), used focus groups to obtain product criteria and
housewives were asked to rate them on a 11 point scale. Subsequently principle component
analysis was used to position the products on a perceptual map with specific dimensions.
There is a need to continuously measure customer perception and evaluate them to find out
the effectiveness of repositioning strategies.

4.7.3 Cluster Analysis

In clustering analysis multidimensional entities are groups under homogenous groups.


Clustering id done in such a way that stimuli within the group are similar where as stimuli
across the groups are dissimilar. A study was conducted by Wilkes [181] on those who
owned Ford Granada or Mercedes or those who owned neither of the two. Numerical rating
scale was used to get perceptions on quality workmanship, value for money and other
attributes. The study came out with a relationship of Ford Granada owners with Mercedes.
Through the study Wilkes [181] has demonstrated how multidimensional scaling and
clustering analysis can be used to find out customer perceptions of competing brand s how

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desired positioning can be determined. Clustering solution was used as a check on the results
of the scaling solution.

Wind [184] has earlier illustrated how clustering technique may be useful in determining the
initial positioning strategy, how multidimensional scaling can measure if the initial strategy
has been successfully implemented and if any modifications are required.

A Herrmann and Huber [70] say that the basic premise of this analysis is that consumers’
perceptions can be represented as a multidimensional space in which brands are positioned.
Positioning of a product is determined from its position on the dimensions of the perceptual
space, product attribute vectors with respect to other brands. Corresponding analysis has been
used by Hermann and Huber [70] to connect the brand attributes like utility components and
individual values.

Positioning means as a place, a rank, a mental attitude toward the given brand (Peter and
Olson 1990). Given this brand positioning can be assessed by measuring consumers’
perception and preference for the given brand in relation to its competitor’s .Necessity to
determine brand positioning both on the basis of its perception and on consumer preferences
is an ideal approach of brand positioning [124]. This is based on the assumption that
customer behaviour is related to both perceptions and preferences and the tow may be
dissimilar. Positioning is determined on the dimensions of the similarity space, and a
product’s position on the attribute vectors.

Herrmann and Huber consider means end theory for value oriented brand positioning.
Kroeber-Riel [97] explains the reason behind this as an ability of perception to generate
motivation to buy a brand and to generate pleasant feelings of fulfilling the desires. Within an
information-processing process, a conception of the suitability of the commodity to for
fulfilling a specific want is formed. Herrmann and Huber also discuss about functional utility
of a brand derived from its physical-chemical-technical attributes [23, 176] and socio
psychological utility which relates to things like aesthetic appearance and social acceptability.
Herrmann and Huber also talk about repertory grid approach, the laddering interview and the
content analysis. The repertory grid determines brand attributes with a series of interview
rounds. Laddering interviews find out the utility components of brands with a series of whys?

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4.7.4 Factor Analysis

Alpert and Gatty[4] say that factor analysis has proved useful in identifying the differences
between products related to consumer preferences and purchases. Factor analysis helps in
developing hypotheses regarding important variables of “product positioning” and in
formulating brand profiles. With factor analysis companies can identify their brand position
and develop segments based on benefits sought by the customers. Alpert and Gatty[4]
through their study on behavioural lifestyles of men claim that consumer behaviour and
attitudes can be used in factor analysis for product positioning. In their study, factor analysis
was run on 80 variables related to consumer usage of products and services, out of which
using principal component method 25 factors came out.

4.7.5 Image and Consumers Denish H. Gensch [60] says that product positioning studies
involve consumers' perception on the product attributes. The first step is to identify gaps
between image and direct measurements. The next step is to consider the strength of the
image. Gensch says that perception is of two components, ability to obtain measures of brand
attributes and the "image" of each brand. The interaction of these two variables is assumed to
vary across product types and individuals. Zimmer and Linda [187] say that prevailing
approaches of image measurement focus on individual attributes and do not attempt to
capture the gestalt of image. In their study on three retail stores – Sears, K-Mart and Wards it
was found out that consumer used different types of image descriptors to express their
perceptions on retail stores. The perceptions were related to attributes and images. Thus this
emphasis the need to focus on gestalt type images as well as they consist of consumer
images. The image descriptors include global image perceptions, store type labels, prototypic
and exemplar image descriptors and product related image descriptors.

Birtwistle, Clarke and Freathy [29] in their study on fashion retailers, compare the
perceptions of customers and retailers using multi attribute model and examining principle
dimensions. Respondents were interviewed to find out the components of store image which
influenced their store selection. They find out that the perceptions of store image of the
customers can be different from those of the retailers. Factors which influence a store choice
may differ from store to store. In grocery store selection cleanliness may be more important
while in a garment store image and style of brands offered may be more important [67].
Specific situations also influence store choices according to the purpose of shopping of each

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customer. This could be the reason that there is no complete match of the image of the store
as perceived by the customers and the image perceived by the retailer.

One of the problems associated with image measurements are the dimensions rated by
customers are mostly predetermined by the researcher [187] To overcome this problem, in
later studies customers were asked to identify the attributes themselves. Study conducted in
Glasgow in 1995, attributes were identified by customers and later they were asked to give
their perception on the identified attributes. In the third survey retailers were interviewed for
their response and the results were compared with the results of the customers. Store image
here was measured using multi- attribute model. Users of brand were found to more likely
give an image response compared to non users of a brand.

In the early days there was association between store image and customer loyalty. Later it
was established [42] that strong market position leads to more foot fall and more profitability.
Osman [126] argued that if a store exceeded customer expectations, it will result in positive
experience which leads to repeat purchase and increased loyalty (Barwise & Ehrenberg
1985).However Ramanuik [140] and Sharp have identified image response patterns where in
the attribute will get a certain amount of response irrespective of the number of users. Present
users . Present users of the brand have been found to be more likely to give a response to
image/ perceptual/attitude of a brand [28]. Collection of responses through free choices
(selecting any brands fitting a particular attribute) were found to be more valid than responses
(Barnard & Ehrenberg 1990) collected through forced choice (rating a brand on the attribute).
Forced choice methods gave overly positive responses but reduced non response errors
(Joyce, 1963). Jenni Romaniuk and Byron Sharp employed a chi-squared formula and
generated table of expected values similar to that the perceptual distance calculation in
correspondence analysis. Using this, they have identified the positioning brands and the
attributes of the brands. Anana and Nique [6] discuss Perception-Based Analysis (PBA) and
its usefulness in evaluating brand positioning consumer’s point of view. PBA is based on
neural networks and it identifies homogeneous segments of perceptions. On a study on Nike,
discriminant Analysis was employed to find the ability of PBA to identify homogeneous
segments. An Exploratory / Confirmatory Factor Analysis were used to confirm the
validation. Results confirmed that PBA was valid and reliable for measuring output brand
positioning.

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Conjoint analysis was used to find out the importance of the attributes and appropriateness of
brands on various attributes [64]. Indirect methods like market share data, brand switching
matrices, and brand vulnerability analysis have also been used [184] to find out the brand's
vulnerability. Indirect approaches identify strengths and weaknesses of brand's positioning,
whereas as direct approaches explain the reasons behind the strengths and weaknesses

4.7.6 Discriminant Analysis

There are various differences between the compositional methods used. Principle component
analysis was proposed by Howard Sheth [71] general factor model was advocated by Urban
(1975) and discriminant analysis was recommended by Hauser and Koppelman [69] Shocker
and Srinivasan [154] along with Aaker and Myers [2] , discuss alternative representations.
The differences amongst the compositional methods need to be understood and the situations
where there are applicable also need to be identified. Principal components solution using
semantic differential judgments generally has an evaluative dimension [125]. Use of partials
and/or discriminant produces more objective dimensions reflecting homogeneous perceptions
of consumers. Also they are more "actionable" as defined by Shocker and Srinivasan [145] In
contrast, straight principal components analysis gives solutions which reflect more meaning
of attributes. Such analyses might be more useful in advertising.

4.7.7 Structural Equation Modeling

Wakefield and Baker [178] empirically measure perceptions on mall environment. They have
modelled the relationship among physical environment, tenant variety, involvement,
emotions and retail responses like desire to stay, repatronage intentions and out shopping
behaviour. Items were identified to measure each construct. Anderson and Gerbing [11]
suggest a two-stage approach to causal modelling, in which the measurement model is first
confirmed and then the structural model is built. McGoldrick and Pieros [120] made a study
on atmospherics-behaviour relationship. Using LISREL for structural equation modelling,
they tested their conceptual model in the malls of Europe.

4.7.8 Multidimensional Scaling

Robert E. Wilkes talks about usage of multidimensional scaling for positioning strategy.
MDS finds out patterns in the data and represents the structure in a geometrical model
(Sheppard, 1972). The main features of the data are represented as points in the spatial map.
Relationships among points are almost the same as in the data captured in the form of
customer judgements of similarity. The closeness of representation of data on the spatial map

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is indicated by stress value, which is the goodness of fit. The lower the stress value the better
is the fit of the configuration to the data. Gary Davies [42] says that retailers can get a
differentiated image through positioning. In his study on food retailing Davies identified
attributes useful in positioning a multiple retailer and segmenting customers through image
mapping.

Lindquist [105] identified nine types of attribute influencing positioning - convenience;


institutional factors; promotion; atmosphere; and post-transaction satisfaction. Davies used
Multidimensional Scaling (MDS) to measure the perceptions of shoppers on retail
differences. In his study, attributes were defined for food retailing focus group discussion,
content analysis and from the results of previous studies. Levitt’s introduced the concept of
the ideal retailer to structure this study.

Many other models have been used to measure store image. Multiplicative competitive
interaction model (MCI) and Multinomial logit models were some of them. Modeling of
distance, size, image and preference, to analyse the attraction of shopping malls used
multidimensional techniques to identify image dimensions. A model by regression analysis
shows that it fits better than Huff's model. A method to specify the image dimensions of mall
by factor analysis was developed. A model for retail attraction was based on the consumer's
preference for centres, distance and cognitive image dimensions and another research looks
into the motivational aspects of consumers’ attraction to malls. [83]. MDS as a technique has
been proposed by many researchers to discuss retail centre image. MDS has often been
utilized in retail store image measurements [18]. MDS was used to find out the influence of
size and accessibility approach to suggest that size and accessibility influence consumer
choice of a centre. In property market research MDS has been used to understand consumer
choice, weighting of property attributes as well as retail centre image and hence patronage.
The extent of similarity between retailer and customer store image were found out by using
MDS. Retail images have been illustrated by MDS [99]

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