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.Chapter 2.literature Review
.Chapter 2.literature Review
2. LITERATURE REVIEW
This chapter reviews and consolidates the relevant literary work on store positioning. The contents
are divided into five sections. The first section examines the evolution of positioning, definitional
approach, positioning components and positioning strategies (Section 2.1). Then, it is followed by
conceptual framework and its application in apparel retailing (Section 2.2). Based on the literature,
research gap is developed in the third section (Section 2.3) followed by research hypotheses
(Section 2.4). Finally, all of the factors are summed up in proposed research framework presented
in the last section (Section 2.5).
2.1 Positioning
Positioning refers to how customers think about proposed and present stores in the market
(McCarthy & Perreault, 1999). It is what you do to the mind of the prospective customer (Ries and
Trout, 1986). In today’s highly competitive marketing environment, positioning has become an
integral element of marketing (Hooley, Broderick & Moller, 1998; Kotler, P., 2000; Ries & Trout,
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Chapter 2 Literature Review
1986; Trout, 1996). The target market and perceived differentiation from competitors are
prerequisites to successful positioning (Blankson & Kalafatis, 2004). Currently, it has become
essential to the companies to understand the positioning due to rise in competition. Positioning is
defined by various authors in different ways and the prominent among them are stated in Table 2.1.
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Position is achieved through development of retailer image. Image in retailing refers to how a
retailer is perceived by shoppers. In other words, image is an overall impression about a retailer as
it is perceived by shoppers. In earlier studies it was found that importance of image attributes differ
in different retail sectors and it depends on several factors like store type, product type, customer
characteristics & study time etc.
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Chapter 2 Literature Review
There are ’four C diamonds’ criterion, these are customer, company (store), competitor & change
to determine the positioning. Thus, the essence of good positioning should pursue followings:
1. Customer - Positions about the business is determined not by the image that a service provider
seeks to convey, but rather by how this image is perceived in the minds of stakeholders. Customers
make their decision based on their individual perceptions of reality, rather than on (the marketer’s)
definition of that reality. Store can amend its set of offerings and reposition in order to understand
shopper issues.
2. Company (Store) - Store’s offering i.e. store and product (apparel) attributes- Stores require
understanding of those attributes which are considered important by shoppers for successful
positioning. The store differentiates itself among shoppers on the basis of attributes, qualities and
other distinctive features.
4. Change - Positioning requires consistency and tight focusing of a selected message over a long
time period, often many years. A strong position can take many years to solidify in shoppers’
minds. Therefore, consistency and tight focusing of a selected message is a key over this time
period.
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From store perspective is regarded as the dominant “perspective” in the literature. Positioning
implies the identification and communication of associations so as to change or strengthen
consumers’ perceptions of the particular store vis-à-vis other stores. Here, the store is active and
intends to create the desired associations in consumers’ minds. In this regard, positioning from a
store’s perspective can be divided into two subcategories namely the intended (target) positioning
and the actual positioning.
Intended (proposed) positioning is all about how a store desires to perceive by the target
consumers. It involves identification of relevant competitors; determines how the competitor stores
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are perceived and evaluated; & analyzes customers (Aaker and Shansby, 1982). For example, an
apparel store intends to be superior to the target consumers in terms of style and quality.
Actual positioning is reflected in the positioning information actually presented to the consumers.
This is typically done with different marketing communication tools such as public relations, sales
promotions, packaging, etc. Thus, the difference between the intended and the actual positioning
lies in the execution of the marketing/communication program (e.g., advertising program)
(Blankson and Kalafatis 2007; Roth 1992).
From consumer perspective, positioning is all about how a consumer perceives a store in his/her
mental map in relation to competition (Antonides and van Raaij 1998; Jain 2000). From this point
of view, the store is passive and the consumer is active. Consumers form or alter the perceived
positions of stores in their minds (Crawford 1985). The perceived positioning may vary depending
on the individual consumer, their values, usage situations or prior experience (Schiffman and
Kanuk 2007); other influencing factors are competitors, word-of mouth & media communications
(Brown et al. 2006).
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reference point usually being the competition (Aaker & Shansby, 1982). For instance,
Fashion@bigbazaar is itself positioned as the middle income group store while Lifestyle is
positioned as high income group (luxury store) against the other existing, organised stores in the
same product category i.e. apparels.
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There are three distinct sources from which strategic positions emerge. These are: (a) variety-based
positioning, because it is based on the choice of product or service varieties rather than customer
segments; (b) needs-based positioning, which comes close to traditional thinking about targeting a
segment of customers; (c) access-based positioning which can be a function of customer
geography or customer scale – or of anything that requires a different set of activities to reach
customers in the best way (Porter, 1996).
Conceptual framework includes store attributes, apparel attributes and individual (psycholographic)
characteristics in order to understand store positioning from practical perspective. In addition to the
above, consumers’ demographic characteristics are also studied. It provides a brief idea on the
existing literature that support the proposed conceptual model framed for this research work. It also
helps in understanding the theoretical basis and various viewpoints of different research studies.
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that expert salesmen; assortment of brands; store location and warranty policies are also important.
Lee et al. (2005) indicates that the customers were more concerned with quality of merchandise,
ease of the shopping process, cleanliness of the store and post-transaction satisfaction. Lindquist,
(1974-75) identified store attributes are merchandise, service, clientele, physical facilities,
convenience, promotion, store atmosphere, and post-transaction satisfaction. Michman (1991)
argued that shoppers select particular stores based on proximity; in-store shopping convenience and
wide selection of available merchandise. Apparel shopping store attributes such as parking
facilities, lighting, ambient factors, design factors, and sales personnel characteristics were adopted
from Shim, Soyeon, and Kotsiopulos (1992), Baker & Grewal (1992), Wakefield and Baker
(1998), Pauline and Geistfeld (2003), Heitmeyer and Kind (2004). Furthermore, the other store
attribute items were drawn from Manolis et.al. (1994); Dabholkar, Thorpe and Rentz (1996);
Oppewal & Timmermans (1997); Sinha, Banerjee and Uniyal (2002); Morschett et. al. (2005); Yoo
and Chang (2005) etc. The main factors on the basis of which store positioning has been studied &
analysed are discussed below.
Store layout & ambiences - It encompasses of all those things that a customer can see or touch
(Kurtz and Clow, 1998). Retail literature suggests that store layout & ambiences is important to
retail customers (Baker et al. 1994); as was supported by the findings of in-depth interviews. Store
layout and physical aspect have been often cited as key drivers for retail service quality experience
(Gutman & Alden, 1985; Hummel & Savitt, 1988; Mazursky & Jacoby, 1985; Oliver, 1981). This
dimension has a broader meaning than the SERVQUAL (Parasuraman et al. 1988) tangible
dimension. The layout & ambience factor refers to the internal atmospherics; easiness for
customers to locate what they need; amusement to shoppers by playing soft music; pleasing &
soothing interior decoration; adequate lighting, proper ventilation; visually appealing facilities;
attractive and clutter free areas.
Sales personal service (interaction) - The interaction with customers through sales personnel is
central to consumer-focused communication (Knee, 2002). This factor essentially captures the
service offered by store service personnel. It plays an important role in building interpersonal
relationships, social interaction and social cues with customers. Sales personnel service is a crucial
factor of a store (Nhat and Hau, 2007) & it is the personal interaction of staff-customer that makes
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Chapter 2 Literature Review
differences in the ‘shopping experience’ between retail outlets (Gomez, Miguel et, al, 2004;
Newman & Patel, 2004).
For this study predicts items are store gives customers individual attention; sales personnel are
consistently courteous; well informed; helpful & friendly; sales personnel of this store have
expertise/excellence in customer service; employees respond to customer’s request; employees are
capable to answer customer’s queries to their satisfaction; employees treat customers courteously
on the telephone. These items are very closely related and capture how the shoppers are treated by
the employees of the store.
Promotional offers and discounts- Promotional offers are a precondition of store recognition and
enhancement, which influence sales (Ratnatunga & Ewing, 2005). A study on branded men’s wear
was conducted and identified that advertising & promotions has maximum impact in creating
awareness to shoppers in their mind while shopping (Narang, R., 2006). It makes significant impact
in retailer’s choice (Kumar et al. 2012). The goal of promotion is to build a stronger store image
and increase sales through the influence of consumers. The promotions factor is therefore a
significant tool in the store service attributes because of its proximity to consumers and its direct
influence on consumer behavior. This study includes demonstrations of new apparels; extensive,
informative & credible advertisements; gift vouchers & loyalty cards offered to existing customers;
discount on bulk buying; special offers/ discounts on special occasions under the promotional
offers & discount factor.
Auxiliary (supportive) service - This factor was identified after qualitative research and captures
aspects of store service quality. This factor has not been used in many previous studies on store
service attribute. The factor refers to Auxiliary (supportive) services, which are provided by the
store to benefit its customers. However, effects of such allied services on overall service quality or
satisfactions have been explored by Dabholkar et al. (1996) under the factor Store Policy.
Researchers give a much broader scope and meaning for the allied services and calls it ‘auxiliary
supporting services’ as it includes all the extra services which the store extends to satisfy its
customers. The supporting services include acceptance of all credit/debit cards, facility for keeping
personal belongings; availability of baskets & trolleys; alteration facilities, safe drinking water and
washroom facilities for its customers etc.
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Chapter 2 Literature Review
Convenience facilities -The following items come under this factor: Store provides plenty of space
for parking; convenient operating hours (Hyllegard et al, 2005); display of price tags on every
apparel; several changing (trial) rooms in store; remains open on selected holidays; easiness of
extensive purchase due to availability of multiple brands.
Problem solving- This factor involves interaction between the customer and the employees
although it is specifically related to the handling and solving customers’ problems and therefore
emerge as a separate factor. It addresses items as suitable and customer friendly sales return policy:
handling customer complaints in prompt and effective manners; allows exchange of apparels
within a stipulated time period; employees show a sincere interest in solving it; appreciates
feedback from customers. The ease of returning and exchanging merchandise is very important to
retail customers (Mazursky & Jacoby, 1985). Service recovery is recognized as a critical part of
good service (Kelley and Davis, 1994).
Reliability- This factor is related to the consistency of performance and dependability (Grönroos,
1983). This factor includes a number of items and other variations similar to the RSQS reliability
dimension. Customers view reliability as a combination of keeping promises; availability of
merchandise; error free transactions (Dabholkar, Thorpe and Rentz, 1996). Literature revealed that
keeping up promises in the store to do something by a certain time; error-free and reliable billing
system; right service at the first time; psychological comfort to customers in their transactions &
availability of merchandise are significant to determine reliability.
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Chapter 2 Literature Review
Other items of apparel attributes were drawn from previous studies such as Jenkins, (1973);
McLean, Roper, & Smothers (1986); Cassill & Drake (1987); Davis (1987); Eckman, Damhorst, &
Kadolph, (1990); Workman (1990); Forsythe (1991); Fiore & Damhorst, (1992); Shim &
Kotsipulos (1993); Abraham-Murali & Littrell, (1995); Birtwistle et al (1999); Zhang et al. (2002);
Thang and Tan (2003); Norum, (2003); Keller (2006); Babin & Harris (2009). Further, it is also
identified from the literature that earlier researchers have been less investigative towards all
apparel attributes.
Furthermore, Abraham-Murali and Littrell (1995) stated four apparel factors. These are physical
appearance, physical performance, expressive, and extrinsic. Besides this, another four factors
stated by Zhang et al. (2002) are function, appearance, symbolism, and price. Factors that represent
apparel attributes are:
Functionality & physical comfort of apparels; Previous research found eight attributes- warmness,
permeability, fabric softness, fabric thickness, fiber content, easy care, durability, and comfort
within the functionality attribute factor (Zhang et al., 2002). The main focus of the functionality
factor was physical comfort of the apparel for the consumer. Researcher predicts that items under
functionality & physical comfort factor are branded apparels (Brand name), eco-friendly (organic
clothing), wide price ranges, durability and availability of all sizes.
Aesthetics; Quality and aesthetics have been included in the previous attribute literature (Fiore &
Damhorst, 1992; Abraham-Murali & Littrell, 1995). The factor consists of attributes related to the
beauty (surface) and overall quality of the apparels (Fiore & Damhorst, 1992; Abraham-Murali &
Littrell, 1995). Shoppers are buying branded ready-to-wear because of quality and status symbol
(Lalitha, A. Ravikumar, J. & Padmavalli, K., 2008). The physical performance of apparel is
important to consumers while shopping (Abraham-Murali & Littrell, 1995).
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Chapter 2 Literature Review
Previous literature has grouped fabric, fiber content, fabric quality, warranty, fit, color, care,
workmanship and overall garment as important determinants of quality (Abraham-Murali &
Littrell, 1995; Beaudoin, Moore, & Goldsmith, 1998). It is also found that previous research does
not adequately explore visual fashion apparel attributes beyond the appearance factor.
Personal values; Personal values are defined by philosophers as a link between subject and the
object i.e. products; as well as subject’s understanding abstract ideas i.e. wisdom, truth & courage
(Alicke, 1983). Personal values are widely recognized in the literature as a factor influencing and
motivating consumer behavior. Personal values organize the perception of an individual’s system
to regulate his or her behavior (Sigrid, 1998) and set meaningful position. An individual pursues
several personal values instead of only one, and the importance of these values is not necessarily
equal. Further, all personal values were not found to be tapped for every purchasing situation
(Munson, 1984). Consumers’ deep rooted personal values act as a useful tool in explaining why
consumers differently evaluate product and buy one product over another (Vinson et, al. 1977).
Two main kinds of personal values, including terminal and instrumental values, have been
recognized (Hilliard, 1950).
Terminal values represent an individual’s general beliefs concerning the desirable end-states of
existence like self-concept, security, warm relationship, sense of accomplishment, self-fulfillment,
sense of belonging, being well-respected, fun & enjoyment in life and excitement (Kahle, 1983).
While instrumental values influence consumers, they comprises of moral and competency values
dealing with desirable modes of conduct that can lead to the terminal values of an individual. It
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includes functional value, conditional value, social value, emotional value & epistemic value
(Sheth et al, 1991).
Fashion involvement; this factor involves mainly interest, pleasure, sign, risk importance and risk
probability (Laurent and Kapferer, 1985 and Mittal & Lee, 1989). Kopp et al (1989) & Fairhurst et.
al., (1989) identified fashion consciousness, fashion innovativeness, fashion importance and
pleasure construct among consumers in their research. Evidence supports the statement that
fashion-involved consumers would demonstrate interest, pleasure and eagerness toward clothing
products (Goldsmith, 1991). Consumers with high fashion involvement were identified as more
likely to purchase more clothes than were consumers with low involvement. Fashion involvement
is used primarily to predict behavioral items related to apparel products such as product
involvement, buying behavior, and consumer characteristics (Browne and Kaldenberg, 1997;
Fairhurst et al., 1989; Flynn and Goldsmith, 1993). Therefore, different types of consumer’s
involvements like product involvement, purchase decision involvement and apparel advertising &
pleasure involvement are included in the fashion involvement investigation (O’Cass, 2000).
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Demographics
Demographics are objective and measurable characteristics, therefore likely to be used in consumer
descriptions. It includes characteristics such as educational level, occupation, income, age,
geographic location, family structure, marital status and gender (Hawkins et al., 1995;
Schiffman & Kanuk, 2007).
Demographic in isolation cannot provide a complete picture of the consumers. Although it
influences consumer behavior (Hyllegard, Eckman, Descals & Borja, 2005). Furthermore,
education influences people’s occupations and their occupations greatly determine their income.
Consumers’ occupation and education influence preferences in products, while income provides
the necessary means for consumption behavior (Choi & Park, 2006; Hawkins et al., 2007;
Vakratsas, 1998). Elderly or mature consumers and their findings concluded that age groups
within the elderly market differed regarding their preference (Lumpkin, 1985; Visser and Du
Preez, 1996) .
Without a well-defined positioning paradigm, it is hard for a product or a company to serve its
intended purpose and survive in today’s competitive market place (Gursoy et al., 2005). For this,
Positioning is one of the powerful tools and also the most difficult decisions (Gursoy et al., 2005)
in this competitive environment. Store positioning is not confined to tangible products as it can
relate to other intangibles to build a sustainable competitive advantage in the mind of shoppers.
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Store positioning components are target shoppers, subset of identifying/value propositions, create
advantage, and actively communicate (Aaker, 1996). Operational efficiency and effective
marketing are two key factors of positioning for survival and competitiveness of apparel stores.
Thus, positioning depends on retailer’s competitive advantage(s) from competitors, needs and
wants of target market & current perceptions of the shoppers.
Stores must firstly understand their occupied position and then, if needed, attempt to amend that
position with the perspective to shoppers. Store positioning was recognized as a critically important
and influential component of corporate strategy. Store’s positioning communicated through the
marketing mix (Wise and Sirohi, 2005) and disseminated through the marketing communications
mix. Each of the marketing mix elements like product, price, place and promotion add up to the
positioning required (Hooley, Saunders and Piercy, 2004). Understanding the various attributes
involved in positioning a store will help retail brand builders take a holistic view of positioning.
Retailers cannot offer a high-quality product at a low price, as these elements do not align equally
with the designed (framed) position. When elements of the marketing mix do not pull in the same
direction, but rather contradict one another, the result will be confused positioning. To develop an
effective position, retailer must determine the current positions of competitors (Gilligan and
Wilson, 2003) that how well they are positioned in the marketplace (Brooksbank, 1994),
consistency across the various dimensions to give shoppers a consistent image (position) of the
store.
The positioning concept became more critical for apparel retail stores due to intensifying
competition. Thus, it has become more important for apparel stores to differentiate their store &
products i.e. apparels in the most meaningful way. This differentiation can be achieved through
positioning. Retailers tried to position in the mind of the consumer through eight different areas:
advertising, location, exterior design, signs, words-of-mouth, previous visits, approach, and display
windows (Weishar, 1992). Positioning leads to a perception of the store’s products and services as
being superior to and distinct from those of its competitor in the mind of target consumers (Jordaan
& Prinsloo, 2001). The apparel stores, which have well positioning in the shopper’s mind, have a
better chance of survival in this competitive environment. Positioning provides the reason to
shoppers for buying a store’s service or apparel and helps shoppers to see why one retailer’s
services are different from the other (Jordaan & Prinsloo, 2001). Every retail store enjoys a
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“Position” in the minds of its customer whether such positioning is a deliberate and planned effort
or not. The advantage of well thought out and customer focused positioning has been well
established.
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In the past, significant studies have been conducted & examined by researchers about the scenario
of ‘positioning’ globally, especially in western countries. However, relatively less attention has
been paid in developing countries like India, which has its own unique set of retail dimensions.
Whatever work has been done in the area of store positioning of multi-brand retail stores in India, it
seems that the organised retail stores in apparel have not been studied exclusively through
alignment of various attributes. Further, it is generally recognised in the literature that Indian
consumers appear to be distinctively different from western consumers in their perception.
Shopper decision to purchase from a particular store is mainly affected by factors like
cultural/environmental factors (culture, sub-culture, social class, groups); social factors (family,
roles, age and lifecycle stage); personal/individual factors (occupation, economic situation,
motivation, personal values, lifestyle characteristics, fashion involvement); psychographic factors
(perception, learning, product, price) and marketing mix (promotion, placement). India having
unity in diversity has heterogeneous population who dominate varied behaviour while shopping as
compared to shoppers in other countries.
Several western researchers include various factors in their studies like personal factors & social
factors (Krzyzaniak, M., & Eris, 1974); social factors & physical factors (Cross et, al. 1987);
personal factors, social factors, physical factors (Dibb et. al., 1991); social factors, environment
factors, individual factors (Zikmond and Amico, 1993); physical factors, social factors (McCarthy
and Perreault, 1999) ; cultural factors, economic factors, geographic factors (Keegan, 1995);
personal factors, marketing mix, environmental factors (Setlow, 1996); physical factors, social
factors, cultural factors, personal factors (Reynold & Lancaster, 1998); social factors, physical
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factors, attitudinal factors (Pride and Ferrell, 2000). In this connection, the scope of earlier studies
was narrow (Areni & Kim, 1994; Bitner, 1992). As it was focused on few attributes, though in
reality positioning is affected by several cues collectively (Zeynep & Nilgun, 2011). In addition,
existing studies have used financial measures (Roth 1992, 1995), and brand evaluation measures
(attribute evaluation etc.) to capture the outcomes of positioning (Carpenter, Glazer, and Nakamoto
1994; Dubè and Schmitt 1999; Pechmann and Ratneshwar 1991).
Furthermore, extensive literature review specifies that there is still dearth of empirical support of
multi-brand organised apparel retailer position with respect to different determinant constructs viz.
store attributes, apparel attributes & individual characteristics; the earlier studies have been uni-
dimensional and have focused only on one aspect i.e. either individual (psychographic) differences
or store attributes or product (apparel) attributes to determine the store positioning. Linkages
(alignment) among these attributes to understand the positioning has not been explored in the
Indian context.
Moreover, the literature suggests that any theoretical model of retail service quality had potential
cultural limitations (Svensson, 2001) and none of the existing retail service quality measurement
models is valid within all retail settings due to different demographic characteristics of shoppers
(Mehta et al 2000; Siu and Cheung, 2001; Kim and Jin, 2002; Ellis et al 2003). It indicates the lack
of validity and representation of RSQS in apparel stores. Items and dimensions have not been
addressed as per the Indian readymade apparel retail practices. Hence, further investigation is
undertaken through modified RSQS based on additional store as well as apparels attributes, which
were not used earlier by researchers.
Furthermore, ‘Attribute-based perceptual mapping’ technique, has been used in various sectors;
Nigam and Kaushik (2011) have studied for prepaid mobile operators in India; Venkatesh and
Nargundkar (2006) have studied the service quality perceptions of domestic airline consumers in
India; Sujandari and Dharmawan (2007) have used it to study the performance of service quality of
gas stations in Indonesia; Johnson (1984) has conducted a study of customers’ choice of most
important attributes of branded motor cycles; and Wittenschlaeger and Fiedler (1997) have shown
the criteria for selecting brands and products for respondents to evaluate, and the principles for
optimizing the perceptual space. Bozbay and Ozen (2008) have done an assessment of Greece’s
image as a tourism destination; and Ryan, et al. (1998) have undertaken a study to determine the
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criteria that men and women use to make choices of tourism destinations; Rajendra, S.,
Nargundkar, Hiremath, G., (2008) studied attribute based perceptual mapping of cement brands;
Kasilingam1, R. and Jayabal, G. (2011) conducted a study on preference and perceptual mapping
of mutual fund schemes; Sezhian M.V. et.al. (2012) conducted a study on attribute-based
perceptual mapping using discriminant analysis in a public sector passenger bus transport
company, but inadequate research has been conducted in perceptual mapping of shoppers towards
organised multi-brand apparel retail stores.
Therefore, the present study made an attempt (a) to study the alignment of positioning constructs
and their effect on store performance; (b) mapping different apparel retailer positions using
perceptual map; and (c) investigation through modified RSQS based on additional store as well as
apparels attributes.
2.4 Hypotheses
Null hypotheses are more exact and convenient means for statistical analysis. It is also easier to
reject the contrary of a hypothesis than confirm it with complete certainty (Shahjahan, 2004). Store
attributes, apparel attributes, individual characteristics & store positioning concepts are considered
among the most researched variables in marketing literature. A number of research findings on
relationships among factors exist. However, those findings vary in terms of the strength of
relationship.
Shoppers evaluate retailer offering by combining all the concerned attributes in order to decide
their degree of satisfaction (Finn and Louviere, 1996). Arun, et al. (2012) conducted a study on the
relationship between service quality dimensions and customer satisfaction at discount stores in
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India and it was found that all the dimensions of RSQS were positively related to customer
satisfaction. In this framework, it comprised of the linkages between store attributes and store
positioning.
Earlier research suggests that the store layout is an important determinant of consumers’
behavioral responses (e.g., Bellenger et al., 1980; Finn, McQuityy and Rigby, 1994; McGoldrick &
Thompson, 1992). Layout is defined as a division of selling area, space utilized and arrangement of
products (Banat & Wandebori, 2012).The layout & ambiences includes interior architecture and
décor, lighting, music, aromas and cleanliness (Baker, 1986; Yun & Good, 2007). Several store-
level studies have examined the effect of a single environmental element, such as music (Dube,
Chebat, & Morin, 1995; Banat & Wandebori, 2012), color (Crowley, 1993) and scent
(Spangenberg, Crowley, and Henderson, 1996; Banat & Wandebori, 2012). In addition, it found
that general perceptions of the store interior influence sales time spent in the store (Akhter,
Andrews, and Durvasula, 1994). Unplanned purchases were higher when consumers have lower
knowledge of store layout/design and no time pressure conditions (Park & Iyer et, al., 1989).
Products in the retail chain outlets should be displayed in such a way that it attracts the consumers.
Product display in the retail outlets is a stimulus to attract the consumers to make impulse buying
(Abratt & Goodey, 1990). Empirical studies were executed on the influence of store ambiences
like storefront, entrances, display windows, building architecture, surrounding area, store design
(Ward, Bitner, and Barnes 1992), exterior window displays (Edwards and Shackley, 1992) ,etc. It
identified that external variables have an influence on retail consumers’ behavior. Store ambience
factors were general interior variables, which include design factors such as floor covering,
lighting, cleanliness, color usage, and ambient factors (e.g., scents, sounds, and temperature). It
found that interior influence position of store in marketplace (Akhter, Andrews, and Durvasula,
1994), Donovan and Rossiter, 1982, Donovan, Rossiter, Marcoolyn, and Newdale, 1994).
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Chapter 2 Literature Review
Consumers shop mostly from those stores that provide the proper environment (Holman and
Wilson, 1982). The physical environment creates an image of a retail store and its services. If
consumers do not enjoy shopping with a particular retailer, they locate a more congenial store for
future purchases. Thus, it is important for retailers to identify and satisfy consumer needs. Retailers
should identify those store attributes that will result in positive responses from their target markets.
Sales personnel influence customer’s perceptions and thus there is a need to understand the
importance of sales personnel in building store image (Baker et al., 2002). Stores provide good
service through sales personnel and leave their shoppers with more favorable perception (Thang
and Tan, 2003). Shoppers uncover large amount of information through sales personnel.
Promotional offers and discounts attracted and stimulate interest among shoppers and helps in
creating store awareness. It is viewed as a positive stimulus by management, a study of apparel
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 than other
store attributes (Yavas, 2011).Past studies revealed that effect of store attributes like promotional
offers on store positioning have significant influence on favourable store image. Promotional offers
& discounts have a significant influence on consumer preference (Thang and Tan, 2003). Auxiliary
(Supportive) Service promotes repeat visits and has a positive impact on consumer purchase
behavior. Consumers do shop for enjoyment, socialization, as well as for economic reasons
(Lumpkin, et. al., 1985). It is found that effective services contribute toward forming a positive
store positioning. Chang and Tu (2005) found that convenience has a direct relationship with
customer satisfaction as well as indirect relationship with store loyalty. Therefore, retailers should
consider convenience and its represented statements carefully to build a consumer base and
consumer loyalty. Problem solving and return policy addresses handling of returns, exchanges and
complaints. The problem solving dimension of retailers includes: willingness of retailers to handle
returns and exchanges, sincere interest in problem and handling customer complaints immediately.
Studies suggest that this dimension positively influence store positioning. Several western authors
studied the impact of other store attributes like reliability service on apparel store positioning. The
result reveals that reliability has significant influence on the purchasing behavior of shoppers
towards readymade apparels, while some studies don’t divulge the similar outcome.
It is hypothesized that organised retail store attributes do not positively influence store positioning.
In this study, store attributes are measured by using variables like store layout & ambiences, sales
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Chapter 2 Literature Review
personnel services, promotional offers and discounts, auxiliary (supportive) service, convenience
facilities, problem solving and return policy, and reliability. Thus, there is a need to explore such
influences. This discussion leads to the development of following hypotheses:-
Ho1e: Store promotional offers & discounts do not influence store positioning.
Ho1f: Problem solving and return policies do not influence store positioning.
According to Collins-Dodd and Lindley (2003), as well as Thang & Tan (2003), merchandise is
considered the most important factor contributing to consumer store preference. This is also
supported by Brirtwistle and Shearer (2001), Sullivan et al. (2002), Collin-Dodd and Lindley
(2003) and North et al. (2003). Merchandise has a significant influence on brand perception and
store choice across consumer segments. Paulins et, al., (2003) remarked that “stores losed touch
with their customers through inappropriate merchandising selections”. Shopper is sometimes ready
to pay, astronomical sums, provided their needs are satisfied (Pathak, S.V. and Tripathi, A.P.,
2009). Earlier research in western countries on apparel attributes like quality, price, availability of
new products, product value, design, durability, eco-friendly nature shows positive and significant
relationship with store positioning. Researchers scrutinized the attributes of readymade apparel
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Chapter 2 Literature Review
stores and found shoppers’ eagerness to pay by consideration in four areas such as physical
comfort, appearance, representation and functionality of apparels that leads towards the store
positioning. Now-a-day Indian shoppers have become more sensitive to quality, variety, design and
status.
In this study, product (apparel) attributes are measured through perfect stitching, fitting, color
choice, latest design, trendy & fashionable, high status symbol, brand name, eco-friendly (organic
clothing), wide price ranges, durability & fabric quality etc. Therefore, a need is felt to study all
apparel attributes in Indian context and find whether they contribute to the growth of apparel
retailers. Therefore, the following hypotheses are proposed:-
Ho2b: Exotic appearance and appeal of apparels do not influence store positioning.
Empirical studies were executed on the influence of personal values. It identified in earlier
research that personal values are one of the factors affecting store positioning as well as
demonstrations of the link between personal values and store choice (Sharma, 1980; Goldsmith et,
al. 1991). These authors’ studies indicate that consumers’ perception related to store is influenced
by personal values i.e. fun and enjoyment. Moreover, consumers’ personal value structures were
found to be linked with store choice in University of South Carolina (Pitts & Woodside’s, 1983).
Other study in car brands category was identified significant effects of personal value on
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Chapter 2 Literature Review
consumers’ choice (Rokeach, 1973). It was shown that consumers with different personal values
have different store choice criteria in picking products, while similar values would possess similar
store choice criteria (Howard, 1977). Personal value structure was strongly related to product,
brand and store in both durable and non-durable stores (Bearden & Woodside, 1977). In this study
Personal value includes (a) self-directed instrumental values (b) Terminal i.e. belongings & (c)
Social directed instrumental values items. In pertinent literature, the influence of personal values
on store positioning has been recognized; however rare studies have investigated the influence of
personal values on store choice.
Other personal value construct i.e. lifestyle characteristics which includes satisfaction with life,
traditional, price conscious, information seeking, travelling and spending, mobile/impulse
shopping were also promoted as a useful tool in the apparel market (Kim, 2005). Lifestyle
characteristics (sophisticated independents, active fashion leaders, price/value conscious shoppers,
fashion conscious practical, value conscious indifferent and fashion followers) differ with respect
to demographic in the Koran apparel market (Kim, et, al., 2002). The AIO measurement variables
(a)Shopping & working activities (b) Interest related to apparels (c) Opinion about themselves &
products (d) Apparels as self-representation have been adopted in many international studies on
consumers’ lifestyle and their relationship with consumer behavior like Gutman and Mils (1982);
Shim and Kotsiopulos (1992); Kamakura and Wedel (1995); Tai and Tam (1997); Kim (2005). All
the dimensions of lifestyle were found interrelated with store positioning criteria in western
countries. However, due to the unique characteristics of Indian culture, lifestyle items need to be
modified.
Another individual psychographic construct i.e. fashion involvement also considered to examine
store positioning. Moreover, the direct effect of fashion involvement of consumer behavior and
store positioning was also explored and addressed. The link between fashion involvement and store
positioning provide evidence of relationship between fashion involvements and store positioning in
earlier studies (Fairhurst et al., 1989 & Seo et al., 2001). It revealed that shoppers with a high level
of fashion involvement would have higher level of care when it came to their clothing. It concludes
that fashion involvements of shopper influence the apparel store position. However, the
investigation in Indian organised apparel store positioning is lacking. Thus this study investigates
the relationship between fashion involvement (i.e. product involvement, purchase decision
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Chapter 2 Literature Review
involvement and advertising involvement) and store positioning. Finally, in order to establish the
overall relationship of individual characteristics with store positioning, the hypotheses is
formulated as follows:-
In this section, research framework is developed & it addresses the research gaps identified from
the literature review. Shoppers’ decision to visit a store is based on numerous influencing factors.
Among all the determinants, three independent factors viz. store attributes, apparel attributes and
individual (psychographic) characteristics and one dependent determinant viz. store positioning is
includes in the study.
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Chapter 2 Literature Review
The hypothesized theoretical framework of the constructs is summarized in table 2.7. The proposed
theoretical model presented in figure 2.3 is empirically tested by using all attributes specific to
product, store and individual differences.
STORE ATTRIBUTES
Convenience facilities
Sales personnel services
Store layout &
ambiences
Auxiliary services
Promotional offers
Problem solving
Reliability
APPAREL ATTRIBUTES
Representation and
functionality of apparels STORE
Exotic appearance and POSITIONING
appeals
Physical comfort of
apparels
INDIVIDUAL (PSYCHO)
CHARACTERISTICS
Fashion involvements
Personal values
Lifestyles
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