An Examination of International Retail Franchising in Emerging Markets

There has been an urgent call from both the franchise industry and the academic community for research on world franchising markets, specifically in the retail sector. This article is an attempt to summarize the main research that has been conducted thus far on international retail franchising. The article begins with an overview of the development of the literature and then discusses the nature and scope of emerging markets, with particular reference to their impact on the stakeholders of international retail franchising. Next, the article develops a conceptual model relating international retail franchising to its stakeholders. Then, a review of the research is divided into the areas of emerging world market: Central and Eastern Europe, Mexico and South America, Asia, and other areas that include India, Kuwait, and South Africa. The article concludes by discussing the next step to developing a research base for further understanding of emerging markets in addition to the opportunities and challenges for retail franchising and future research.     

Shaping Retail Brand Personality Perceptions by Bodily Experiences

Customer experiences play an important role in retail brand management. This research investigates how bodily experiences in retail environments influence customers’ perceptions of retail brand personalities. Based on research on human personality perception, we propose that bodily experiences transfer metaphoric meaning to customers’ brand perceptions. In a field experiment and a lab experiment we manipulated participants’ bodily experiences (feeling of hardness and temperature) and consistently found a metaphor-specific transfer of experiences to retail brand personality perceptions (on the dimensions “ruggedness” and “warmth”). A third study reveals the mechanism behind the effect and demonstrates concept activation elicited by bodily experiences in customers’ minds.     

Relationship intention and relationship quality as predictors of clothing retail customers’ loyalty

Retailers endeavour to establish and maintain strong relationships with customers in order to build customer loyalty. Unfortunately, such endeavours are not always successful as not all retail customers reciprocate retailers’ relationship efforts. Customers’ intentions to engage in relationships with retailers (i.e. relationship intentions) should thus be the starting point in building customer loyalty. Moreover, customers’ perceptions of the strength of their relationship with a retailer (i.e. relationship quality) should also be considered when building customer loyalty. The purpose of this study is to determine whether clothing retail customers’ relationship intentions and relationship quality, individually and in combination, predict their loyalty to clothing retailers. Data were collected from 511 respondents in South Africa’s greater Tshwane metropolitan area. From a hierarchical multiple regression analysis, it was found that clothing retail customers’ relationship intentions and relationship quality are individually, and in combination, predictors of their loyalty to the retailer. Results furthermore indicate that relationship quality mediates the relationship between relationship intention and customer loyalty. The findings highlight the importance of first determining customers’ relationship intentions, and then reinforcing positive perceptions of relationship quality when building customer loyalty.     

Dimensions of Luxury Brand Personality: Scale Development and Validation

Both the marketing industry and academia have been paying more attention to the growth and potential of the luxury market. This research developed a theoretical framework for understanding the dimensions of luxury brand personality and a reliable and valid scale that measures these dimensions. When 30 luxury brands, ranging from fashion to automobile and retail, were assessed on a set of diverse personality attributes, six dimensions representing luxury brand personality were identified: Excitement, Sincerity, Sophistication, Professionalism, Attractiveness, and Materialism. Findings indicate that while three dimensions, Sincerity, Excitement, and Sophistication, share similar qualities with those identified in Aaker's (1997) scale for general brand personality, the other three dimensions, Professionalism, Attractiveness, and Materialism, reflect meanings unique and specific to luxury brands. Altogether, the results of this research hold the notion that luxury brands serving as consumption symbols provide both utilitarian benefits and symbolic meanings to contemporary consumers.     

US small retail businesses’ perception of competition: Looking through a lens of fear,confidence, or cooperation

The U.S. retail industry has undergone dramatic changes, leading to the closing of brick-and-mortar retail stores on a large scale. Understanding perceived market competition among small retail businesses may help explain why certain businesses survive or fail in the altered retail environment. This study investigates small retail businesses' perceptions of competition within/outside the community, underlying reasons for their perceptions, and variations in perceptions by different business characteristics. Contrary to common expectations, we found that more than half of businesses interviewed were optimistic in the face of competition. Our data reveal two salient underlying reasons for pessimism and five for optimism. These perceptions tended to differ by operational locality (urban clusters vs. urban areas), business revenues, and innovativeness. Based on the findings, we developed propositions and a framework of small businesses' perceived competition and sustainable competitive advantage. We discussed theoretical and practical implications for small retail businesses’ sustainable growth in the challenging retail environment.     

Consumers' perceptions of food packaging: an exploratory investigation in Potchefstroom,South Africa

Consumers form perceptions of various food products through their comprehension of the visual stimuli on food packaging that attract their attention. These perceptions directly affect their purchasing decision at the point of purchase, which emphasizes the importance of attention‐capturing packaging attributes. However, little research is available regarding consumers' perceptions of food packaging, especially in the South African context. This study aimed to explore a sample of South African consumers' perceptions of food packaging and how these perceptions were formed through the perceptual process. A qualitative, exploratory study was conducted by means of 25 semi‐structured interviews and through the use of ambiguous mock packaging as a projective technique. Participants were questioned regarding their general perceptions of food packaging. The attention‐capturing ability of packaging as well as consumers' interpretation of this packaging after exposure to the mock packaging was also discussed. Findings from the study indicated that participants mainly based their perception of food packaging on its functional (being purposive, recyclable and informative) and physical attributes (being attractive, of high quality and hygienic). This study also indicated that information and visual attributes of packaging are important to gain consumers' attention in‐store. Participants' comprehension of packaging included general associations of specific food products with certain types of packaging, such as associations with quality and shelf life. Negative associations with packaging mostly entailed difficulty to handle the product, poor quality of the product and environmental problems. This study identifies those product attributes that participants regarded as the most important stimuli for forming positive perceptions regarding food packaging. It is important for manufacturers to pay attention to the information on perceptions that was gained in this study, as it might help them to create packaging that better fulfil consumer needs. These findings could also be applied in a larger study of a quantitative nature, which will ultimately result in more positive consumer shopping experiences and consumer satisfaction regarding food packaging.     

我国零售业公司价值特征影响因素研究——基于零售上市公司的实证分析

自我国零售业全面对外开放以来,本土零售商在拥有更广阔发展空间的同时必须面对外资零售商的进入带给其的竞争压力。因此,零售企业不再只关注其目前获利情况,更为关注的是公司的长远利益,即公司价值。文章将公司价值与零售业相融合,力求探讨一个行业代表性的价值因素,使本土零售企业能够明确自身定位。研究选取零售业全面开放后2005-2010年六年零售上市公司的年报数据为样本数据,在国内外学者研究基础上从资本结构、股权结构、规模经济、人力资本、产业因素及财务因素综合分析零售业公司价值的特征因素,为今后有关零售业进一步研究提供参考价值并对其未来发展提出合理化建议。     

The effects of in-store themed events on consumer store choice decisions

Retailers are increasingly using in-store events to provide shoppers with unique experiences that will enhance shopping value and help differentiate their stores from competitors. However, relatively little is known about how consumers respond to experiential retail events in terms of their store choice decisions. The purpose of this research was to find out how in-store retail events affect consumers in terms of their store choice decisions. The paper presents findings from a discrete choice experiment that manipulated the presence of different types of in-store themed events in a do-it-yourself (DIY) category. Participants were 312 randomly recruited residents of Melbourne, Australia, who had recently shopped at a hardware store. The experiment was implemented as a mail-back survey. Using logit models the authors assess the effects of the in-store events along with those of various traditional store attributes, including store appearance, price image and distance, on consumer store choice decisions.     

Retail Philanthropy: Firm Size,Industry, and Business Cycle

This article investigates the effects of firm size, profitability, industry affiliation, and the business cycle on retailer philanthropy. The importance of industry and firm effects on giving was analyzed with regression models using industry-fixed effects as well as firm strategy variables. The analysis included instrumental variables methodology to account for simultaneity in the charitable giving–profits relationship. Data were gathered from the IRS Corporate Statistics of Income Sourcebook, data that provide firm size class measures covering the entire firm size distribution ranging from small retailers up to large multi-national retail firms. Retailer philanthropy was measured as the ratio of charitable contributions to total receipts. Important findings include a cubic relationship between retailer philanthropy and firm size; industry effects stronger than those observed for retail profit; and the absence of business cycle effects. The empirical research relating retail charitable giving to firm attributes including firm size and advertising, industry and business cycle factors are unique in the business ethics literature. Prior studies regarding the importance of industry on charitable giving utilized data across broad sectors of the economy. Firms from different sectors could be expected to differ in philanthropic approach due to differences in public contact as well as differences in public relations exposure. The strong industry effects reported for this sample of exclusively retail firms, with similar public contact, provide strong evidence for the importance of industry in determining firms’ charitable strategies.     

基于消费者认知的零售店铺印象形成过程拆解

基于消费者认知的零售店铺印象形成是解释消费者购买决策行为的重要内容,消费者对零售店铺印象的形成源于其对店铺重要属性的感知和三个认知参照标准:消费者以往的购物经历、零售店铺业态、店铺选址环境,这三个方面从不同的视角影响着消费者对零售店铺重要属性的判断和整体店铺印象的形成。本文在理顺以往学者研究结论的基础上,拆解并理顺了消费者零售店铺印象的形成过程。     

Hedonic vs. utilitarian consumption: A cross-cultural perspective based on cultural conditioning

This study investigates the effects of cultural conditioning, product type, and benefit claim type on attitudes and brand personality perceptions among consumers from a society that is more culturally conditioned towards utilitarian consumption (Shanghai, China) and an economy that is less culturally conditioned towards utilitarian consumption (Singapore). Our findings reveal that consumers in Shanghai preferred ads promoting utilitarian rather than hedonic products. They also rated brands of utilitarian products as more sophisticated, competent, exciting, and sincere than hedonic products. No such difference was observed among Singaporeans. These consumers preferred hedonic over utilitarian products but did not perceive them as being different from utilitarian products in terms of brand personality. Theoretical and managerial implications are forwarded, together with directions for future research.     

Understanding retail branding: conceptual insights and research priorities

With the growing realization that brands are one of a firm's most valuable intangible assets, branding has emerged as a top management priority in the last decade. Given its highly competitive nature, branding can be especially important in the retailing industry to influence customer perceptions and drive store choice and loyalty. We integrate lessons from branding and retail image research to provide a better understanding of how retailers create their brand images, paying special attention to the role of the manufacturer and private label brand assortment. We also highlight some important areas that deserve further research in the form of three sets of research priorities.     

Validation of a Fashion Brand Image Scale Capturing Cognitive,Sensory, and Affective Associations: Testing Its Role in an Extended Brand Equity Model

This research validated a new 16‐item brand image scale that captures cognitive, sensory, and affective dimensions (i.e., mystery, sensuality, intimacy) of tangible and intangible attributes of fashion brands. Three studies were conducted to develop a holistic, yet parsimonious, fashion brand image measure. The initial subthemes of brand image and representative items were based on a review of scholarly literature and industry‐based information and on interview findings. Reliability and validity of the new scale were confirmed using data from 218 college students and a national sample of 2,373 respondents. Convergent and discriminant validity were supported through confirmatory factor analysis. Nomological validity was supported through testing a structural model containing the three brand image dimensions, Roberts’ ( 2005 ) lovemarks experience, and brand equity variables. The new brand image scale is different from existing scales because it incorporates Roberts’ industry‐based perspective, including more comprehensive sensory and affective dimensions than found in past brand image scales. This study provides support for Roberts' lovemarks model and the contributors to brand equity, which has implications for theory and for marketing firms that endeavor to build an effective fashion brand image.     

To Do Well by Doing Good: Improving Corporate Image Through Cause-Related Marketing

As part of their corporate social responsibility, many organizations practice cause-related marketing, in which organizations donate to a chosen cause with every consumer purchase. The extant literature has identified the importance of the fit between the organization and the nature of the cause in influencing corporate image, as well as the influence of a connection between the cause and consumer preferences on brand attitudes and brand choice. However, prior research has not addressed which cause composition most appeals to consumers or the impact of cause choice on corporate image. A between-subjects field experiment in the Netherlands examines the influence of three core cause attributes??cause type, cause scope, and cause acuteness??on consumers?? perceptions of corporate image. Furthermore, this experiment examines the extent to which consumer identification with the cause mediates the influence of the cause attributes on corporate image. The findings indicate that identification with the cause leads to more positive evaluations of marketing campaigns for cause type and cause scope. Also, however, our results uncover a negative direct relationship between cause scope and corporate image. Cause acuteness is only marginally influential in corporate image perceptions. By proposing and testing a comprehensive model of the influence of cause attributes on corporate image in cause-related marketing, this article provides important implications and suggests avenues for further research.     

Understanding the older shopper: A behavioural typology

With regard to the contemporary retail environment, to date, the older shopper has been afforded limited academic attention, which is somewhat surprising given the growth of this population in the UK. Consequently, this study presents an empirically derived typology of older grocery shoppers through the application of salient retail attributes and store image dimensions developed through extensive qualitative research techniques. The findings provide an important contribution towards better understanding differences in shopping behaviour amongst older consumers. The identification of six distinct shopper types, including three new distinct groups, contributes to theory, whilst a number of potential implications for retail managers are explored in light of the findings.     

Effects of comparative advertising format on consumer responses: The moderating effects of brand image and attribute relevance

In this research we distinguish between ads that compare two different brands (Across-Brand Comparison or ABC ads) and those that compare different versions of the same brand (Within-Brand Comparison or WBC ads). Results from an experiment indicate that when comparative ads use attributes that are relevant to product performance, ad type and brand image interact such that an ABC ad leads to less favorable consumer perceptions than a WBC ad when image of the sponsor brand is low but not when it is high. However, when the ads use attributes that are irrelevant to product performance an ABC ad leads to less favorable consumer outcomes than a WBC ad, regardless of the image of the sponsor brand. We further propose and show that ad believability mediates these effects. Theoretical and practical implications of the findings are discussed and directions for future research are provided.     

Independent Retail and Grocery Shops in Zimbabwe: Survival and Demise in a Crisis and Post-Crisis Era

Research on independent retail and grocery shops has largely been confined to more advanced markets such as those of the United States and the United Kingdom, ignoring trends in this sector in other markets such as Africa. Findings from these previous studies have established increasing pressure for survival faced by these independent retailers due to the dominance of big local supermarket chains and increased foreign competition. This research investigates the impact of increased local and foreign supermarket retail competition on independent retailers in Zimbabwe during the turbulent hyperinflation crisis era and the post-crisis recovery dollarization era. Key findings from the study focus on the impact of the changing retail landscape on growth and demise of these retailers. The study outlines constraints faced by the retailers and coping strategies that are being used to address the changing landscape and constraints. Implications for marketing practice and policy are then outlined.     

Projecting corporate brand image and behavioral response in business schools: Cognitive or affective brand attributes?

This paper considers corporate brand image, focusing on cognitive and affective brand attributes in the context of business schools. While previous research on university or institutional branding has studied these elements separately via cognitive (e.g., service or educational quality attributes) or affective criteria (personality traits of the corporate brand), this study investigates them jointly through behavioral responses (leading to positive recommendations about the corporate brand). This is important because brand equity such as positive word-of-mouth (or mouse) is derived from both attitudinal components, rather than being based on only one component. Drawing on an empirical survey of postgraduate (MBA) students from four business schools, the findings reveal that both cognitive and affective attitudinal components appear equally important in shaping corporate brand image. Further, when the mediating effect is investigated, interestingly, students' positive recommendations to schools depended largely on the affective (prestigious, adventurous, empathy and competence) rather than upon the cognitive brand attributes. This paper contributes theoretically to the corporate brand and consumer behavior literature by investigating both attitudinal components at a corporate brand level and investigates their effects on behavioral/conative response. The practical contribution of the paper and its managerial implications lie in the context of defining strategy in relation to positioning business schools in an increasingly competitive higher education market.     

Understanding how retail environments are perceived: a conceptualization and a pilot study

A conceptual framework for understanding how perceptions of retail environments are formed is developed in this paper. In developing the framework, three main issues receive theoretical attention. First, the problem of conceptualizing retail environments is tackled. Second, the dimensions of environmental perception are discussed from the standpoint of retail arenas. Third, the factors that moderate how different retail environments are perceived are treated producing a few research propositions. The article also reports the findings of a pilot study. Both quantitative and qualitative analyses are conducted and they show that the separate perceptual dimensions manifest themselves in distinct ways in different retail environments. Finally, the theoretical and managerial implications are discussed and future research suggestions are spelled out.