Managing a Global Retail Brand in Different Markets: Meta-Analyses of Customer Responses to Service Encounters

This study investigates how retailers can leverage their brand to shape customers’ satisfaction with service encounters. It develops and tests hypotheses about how brand, store, and consumer factors moderate customer responses to experience clues during retail service encounters. Six meta-regression analyses synthesize and compare results from 842 satisfaction equations describing customers’ encounters with a global retailer operating 400 stores in 32 countries. The results show how customers weigh their perceptions of service encounters differently depending on brand, store, and consumer factors. In markets where customers believe the retailer has high holistic brand quality, they place less weight on experience clues within the store. In markets where customers believe the retailer’s service brand promise, they place more weight on in-store experience clues. In markets where the retailer promises utilitarian value, customers weigh functional experience clues more heavily. In markets with an online purchasing channel, the effect of experience clues common to offline and online store environments is magnified, and unique clues are diminished. In addition, customers heavily weigh experience clues that fit their goals. In general, retail success factors include high brand quality (which makes customers more forgiving), a service brand promise that is mirrored in the store image (which makes customers attend to the experience clues aligned with them), and the careful monitoring and managing of retail touchpoints (to customize experience clues to each market). In this way, retailers can use customer-based strategies to effectively design and manage their global retail brand in different markets.     

The brand architecture of grocery retailers: Setting material and symbolic boundaries for consumer choice

This article discusses how the brand architecture of grocery retailers set material and symbolic boundaries for consumer choice, thus limiting consumer sovereignty. The article first discusses previous work on store atmospherics, servicescapes and brand architecture. It is argued that work based on these concepts has taken an internal management perspective on how retailers can manipulate aspects of the retail setting to serve their own interests. Then, we develop an alternative conceptualisation of retailer brand architecture that takes into account that consumers (and other constituents) are active co-constructors of material and symbolic aspects of retail settings. It is discussed how consumers participate in constructing retailer brand architecture and how this concept differs from previous research. Implications for both research and practice are discussed.     

零售商品牌资产管理策略体系构建——基于多维理论视角的探讨

零售商品牌资产的管理和创建是零售企业获取持续竞争优势的关键,但关于零售商品牌资产管理策略的理论指导并不系统和丰富。因此,本文从零售商品牌营销管理、顾客情绪管理、顾客体验管理、顾客关系管理、顾客忠诚管理5个多维理论视角,对零售商品牌资产管理的策略体系进行了构建,以期为零售商品牌资产的创建过程和途径提供丰富的管理视野与思路。     

Follow my leader? Lookalike retailer brands in non-manufacturer-dominated product markets in the UK

Retailer brands are a common feature of most retail sectors today, and have made an important contribution to the financial performance of Britain's retailers. Over the past two decades, as retailers have adopted the marketing approach in their business activities, the nature and role of retailer brands in marketing strategies has changed. This paper reviews the development of retailer brands in the grocery market, from their original position as product alternatives to leading manufacturer brands, to brand alternatives in their own right. Part of this transformation has involved a revision of the packaging and presentation of these product ranges and this has led to accusations of copy-catting and theft of brand identity. The paper then explores the lookalike debate and reports on an exploratory study of retail brand recognition and the lookalike situation in those product markets which are not dominated by established manufacturer brands.     

“Showrooming” in Consumer Electronics Retailing: An Empirical Study

The present study focuses on multichannel retailing strategies and describes the state of consumer behavior regarding “showrooming” (the practice of examining merchandise or products in a retail store and then buying it online). Founded on the theory of planned behavior (TPB), the authors examine the antecedents of showrooming using data collected from a sample of 176 retail consumers. Based on their results, they define perceived control, website compatibility, and subjective norms as the main antecedents of consumer attitudes toward online purchases. Additionally, they state that previous experience and reasons against purchasing online are directly associated with consumers’ intention to purchase on the retailer’s website. Finally, some theoretical conclusions and practical implications for retailers are discussed.     

How well do ‘off-price’ retailers satisfy consumers?

Off-price retailing is a new form of discount or low-price retailing that has become prominent in the U. S. during the past decade. In an attempt to satisfy today's quality-and price-conscious consumers, off-price retailers have utilized a marketing strategy of ‘brand and designer names for less’. Based on research assessing consumers' attitudes towards apparel offerings of off-price versus conventional retailers, we suggest that off-price retailers are not yet successful at satisfying consumers' needs and wants in their special niche of the market. We recommend several revised marketing strategies to enable off-price retailers to satisfy consumers better, and thereby maintain their niche in the ever competitive consumer market. We conclude by observing that it is important that consumer-orientated professionals take an advocacy role in encouraging retail institutions such as off-price stores to revise their marketing strategies to serve consumer interests better.     

The effect of perceived advertising effort on brand perception: implication for retailers in Hong Kong

This paper examines how advertising effort, specifically advertising creativity and advertising believability, may influence consumers’ perceptions of a retailer’s business philosophy, and in turn consumers’ behavior toward retailers in Hong Kong. Altogether five hundred and eighty-three respondents (i.e. 320 college students and 263 shoppers) were surveyed. The results suggested that retailers that are regarded as having more creative advertising are perceived as being more learning-oriented, which leads to higher brand recognition. Meanwhile, retailers that are regarded as having more believable advertisements are perceived as having higher levels of integrity, and as a result are better recognized and more likely to be patronized. This research contributes to literature in retailing and marketing communication by establishing the antecedents and consequences of building a learning-oriented and trustworthy business philosophy in a cultural specific context. It also provides practical guidance for retailers who aim to increase brand recognition and purchase intentions through promotional effort.     

New product success in the consumer packaged goods industry: A shopper marketing approach

Marketing activities that influence shoppers along the various stages of their path-to-purchase are gaining attention from both manufacturers and retailers. Using a dataset with detailed information on 105 new products (NPs) launched in the U.K. by 44 leading brands and sold across 13 major retail banners, we provide strong support for the prominent role of both upper- and lower-funnel marketing actions that influence consumers before (upper) or during (lower) their shopping trip. We show which of these shopper-marketing instruments have the largest effect on NP performance at a retailer, and whether and how their effect is moderated by the retailer's store context. When it comes to NP success, the lifeblood of CPG companies, the lower-funnel marketing actions targeting shoppers directly at the point-of-purchase predominantly decide your fate. Thus, manufacturers should work ever harder to collaborate with retailers and push the store-specific shopper-marketing instruments in a favorable direction through information sharing and tailoring of their marketing program to individual retailers. Indeed, not all news is bleak for brand manufacturers. We identify five pieces of good news that brand manufacturers can use to their advantage.     

Optimal retail sales strategies for old and new products in monopoly and horizontal competition scenarios

Advances in technology have made product updates more frequent and allowed consumers to choose different versions of the same product based on their preferences. It is crucial for retailers to understand how to formulate optimal sales strategies based on those different consumer preferences. To this end, we develop game models that consider the heterogeneity of consumer preferences under both monopoly and horizontal competition scenarios and perform the sensitivity analysis to examine the impact of consumer proportions and consumer preferences on retailers’ sales strategies. The results show that (i) regardless of competition or monopoly status, the original retailer can always maximize profit by setting prices based on the market share of traditional consumers, as long as the retailer sells both new and old versions of the product; (ii) the greater the competitive advantage of the competitor, the more advantageous the hybrid sales mode; (iii) if the price of the old product is below a certain threshold, there will be a positive profit for the original retailer when selling both the old and new products; and (iv) when consumer acceptance of competing retailers is lower, entering the retail market is not a good choice for competing retailers.     

Brand Loyalty and Price Promotion Strategies: An Empirical Analysis

Though brand loyalty has been studied extensively in the marketing literature, the relationship between brand loyalty and retail pricing strategies is not well understood. Designing promotion strategies involves two key decisions: the percentage reduction in price from the existing price point (depth), and the frequency with which a product is promoted. These decisions, in turn, are critically dependent upon how many consumers can be convinced to switch to a brand by temporarily reducing its price, and how many are instead brand loyal. Theoretical models of how the strength of brand loyalty influence optimal promotion strategies have been developed, but there are no rigorous tests of their hypotheses that take into account wholesale price variation. We test how brand loyalty impacts promotion strategies for two frequently purchased consumer packaged good categories. Our results confirm that retailers promote strong brands shallower and more frequently compared to brands with weak loyalty. Our results highlight the importance of carefully modeling wholesale prices when testing behavioral models on retail pricing.     

Crosswise and reciprocal interdependencies within retailers’ multichannel structures

Understanding consumer behavior across channels is the fundamental basis for implementing successful multichannel retailing strategies. This study analyzes the crosswise and reciprocal relationships between offline and online brand beliefs, offline and online retail brand equity and consumers’ conative loyalty to a retailer in multichannel structures. The relationships are contextualized by investigating fashion and grocery retail sectors and different prior channel performances that are likely to affect the paths to loyalty across channels. To provide insight into these issues, two cross-sectional and two longitudinal models are employed. The results show that former brick-and-mortar retailers are able to significantly increase consumers’ loyalty to the firm by primarily designing offline (secondary online) attributes and beliefs. The results hold for retailers in both fashion and grocery retailing, however, with stronger effects in fashion, as well as for retailers with strong vs. weak prior channel performance. However, indirect effects indicate that online brand beliefs and offline retail brand equity are the central strategic levers for prior strong (vs. weak) retailers. Reciprocal relationships between online and offline retail brands underline important channel interdependencies. Managers thus need to take these crosswise and reciprocal interdependencies between channels into account when designing successful multichannel retailing systems. This study introduces the novel idea of simultaneous crosswise and reciprocal relationships within multichannel retail structures and shows that paths to loyalty vary for retailers in different retail sectors and retailers with strong vs. weak offline and online channel performances.     

我国零售商开发自有品牌的策略研究

自有品牌,是零售业态的创新和发展,是零售商和制造商之间的关系发生深刻变化的产物,是提高零售商竞争优势的一道利器。它在帮助零售商增强竞争力、增进顾客忠诚度、实现利润增长等方面都具有强大的推动作用。因此根据零售商自有品牌产生的原因,对零售商发展自有品牌的优势进行剖析,制定出我国零售商开发自有品牌应采取的策略。     

Price-matching guarantees in dual channels

Many retailers offer price-matching guarantees (PMGs) whereby they promise their customers that any lower price offered by competition for an identical product will be matched. Suppliers sometimes also offer PMGs to consumers in their direct channels. However, the extant literature on PMGs focuses on retailers and is silent on the role of upper stream chain members. We contribute to the literature by identifying the implications of PMGs in a dual distribution channel in which a supplier reaches consumers via a direct channel in addition to the retail channel. We show that the presence of PMGs in a dual channel hinges on supplier’s strategic ability, or lack thereof, to adjust its wholesale price in relation to the guarantee. Specifically, a PMG fails to prevail at equilibrium when the supplier is capable of strategically adjusting its wholesale price - but may prevail at equilibrium otherwise. The main reason is that the supplier can manage the competition between the retail channel and the direct channel through its wholesale price decision, and offering a PMG limits this ability. On the other hand, offering a PMG can be a beneficial strategy for the supplier when the supplier cannot adjust its wholesale price; for instance in a retail dominant chain where the retailer dictates the transfer price. In a retail dominant chain, if the direct and retail channels are perceived to be similar in quality and service offerings, then both channel members benefit from offering a PMG because it softens the intensity of price competition. On the other hand, when the two channels are sufficiently differentiated in quality and service offerings, then retail managers should be cautious and avoid offering the guarantee if their channel is in a superior position in terms of perceived quality.     

The Impact of Brand Delisting on Store Switching and Brand Switching Intentions

A tool retailers often use to improve their negotiating position with brand manufacturers is to delist - or threaten to delist - the manufacturers’ brand. Because brand manufacturers rely mainly on retailers to sell their products to consumers, a brand delisting will cause a sales loss for the brand manufacturer. Therefore, many brand manufacturers feel enormous pressure to give in and improve buying conditions to favor the retailer. The question thus emerges: Can a brand manufacturer resist a retailer's threat to delist its brand(s)? If a brand delisting severely hurts retail sales, it is easier for a brand manufacturer to resist. The authors study the impact of brand delistings on store switching and brand switching using a controlled online experiment and in-store shopper survey. They develop and test a conceptual model with several antecedents of consumers’ reactions to a brand delisting and conclude that brand equity, market share, and the products’ hedonic level drive store and brand switching.     

Manufacturers' brand advertising and how it influences manufacturers' and retailers' margins

This article describes the effects of manufacturers' brand advertising on the costs, margins and prices of firms in a real-life, 'dual-stage' world where manufacturers sell to retailers who resell to consumers. Unlike 'single-stage' models, which are frequently used by economists, in which manufacturers appear to sell directly to consumers or to deal with them through an inert distribution system, retailers in a dual-stage world neither buy nor sell as perfect competitors. Although in some industry structures advertising will raise prices to consumers, the welfare effects of advertising are far more benign in a dual-stage world. In intensively advertised categories consumers are more disposed to switch stores within brand than brands within store (just the opposite of relationships in categories where brand franchises are weak) causing there to be an inverse association between margins at the two stages. Thus, while intensive advertising will normally raise factory prices it will drive down retailer margins, often to the point that retail prices are below the levels that would be obtained if the industry were only lightly advertised.     

The Effects of Retail Banner Standardization on the Performance of Global Retailers

Global retailers often face an important decision about the extent to which they should standardize or adapt their retail banners, a choice that the authors refer to as retail banner standardization (RBS). Drawing on the international marketing and retailing literatures, this study investigates how RBS affects the performance of global retailers in a longitudinal sample of 69 global retailers from multiple countries and sectors, across ten years. Findings indicate that the role of banner standardization in the successful performance of global retailers depends on retailer and market-level characteristics. Specifically, the results demonstrate that RBS improves retailer profitability as retailers increase their global penetration and emphasize status-based differentiation. Findings also suggest that banner standardization has stronger effects on profitability as retailers increase their focus on emerging markets and e-commerce. However, the authors also find that while RBS increases profits at low levels of global diversity, this effect becomes non-significant as retailers expand to highly diverse foreign markets. As such, the study provides important implications for global retailers while also filling the gap in banner/brand standardization/adaptation research that lies at the intersection of retailing and international marketing.     

Do CSR actions in retailing really matter for young consumers? A study in France and Norway

This research explores how young consumers perceive Corporate Social Responsibility (CSR) actions of French and Norwegian food retailers, and how these actions affect brand image, brand associations (adjectives, verbs, and names) and consumer–retailer relationships. It uses a qualitative methodology with in-depth interviews. This exploratory study shows that French and Norwegian young consumers have problems linking CSR with food retailing, and they question retailers' true commitment to CSR. Young French consumers had stronger brand associations than young Norwegians. Therefore, we argue that, CSR commitment among retailers in both countries is likely to positively affect retailer brand image. Nevertheless, CSR related products could also be associated with higher prices and may exclude low-income consumers.     

Segmenting the older American market for personal apparel: focus on rural communities

The goal of this research was to determine whether rural elderly consumers' wants and needs for apparel products were met at the local retail level. Consumers (n = 322) ranging in age from 54–94 years were surveyed concerning their attitudes and behaviour regarding shopping for personal apparel. Data analyses revealed five market segments that differed in terms of (i) the level of involvement with shopping; (ii) perceptions of physical constraints to shopping; (iii) perceptions of available merchandise mix and services; and (iv) certain demographic characteristics. Respondents in cluster 1 were active and frequent shoppers, but did not always find what they needed. Those in cluster 2 were demanding consumers who were also satisfied with retail offerings. Cluster 3 compared prices and was highly dissatisfied with the merchandise available. Cluster 4 was satisfied with the merchandise mix, but did not shop often. Cluster 5 was highly dissatisfied with retail offerings.     

Customer Experience Management in Retailing: An Organizing Framework

Survival in today's economic climate and competitive retail environment requires more than just low prices and innovative products. To compete effectively, businesses must focus on the customer's shopping experience. To manage a customer's experience, retailers should understand what “customer experience” actually means. Customer experience includes every point of contact at which the customer interacts with the business, product, or service. Customer experience management represents a business strategy designed to manage the customer experience. It represents a strategy that results in a win-win value exchange between the retailer and its customers. This paper focuses on the role of macro factors in the retail environment and how they can shape customer experiences and behaviors. Several ways (e.g., promotion, price, merchandise, supply chain and location) to deliver a superior customer experience are identified which should result in higher customer satisfaction, more frequent shopping visits, larger wallet shares, and higher profits.     

Retailers with traits of consumer: Exploring the existence and antecedents of brand loyalty in small unorganized retailers

Retail in most emerging countries, like India, is dominated by the informal sector consisting of small unorganized retailers and marketers selling through them desperately want to win them over because it can be a powerful competitive advantage in these markets.Small unorganized retail store is a unique setting because most of these stores are owned and managed by individual proprietors who are neither schooled in systematic business decision making and nor have access to professional expertise and scientific tools to assist in taking business decisions in a systematic way. With loads of decisions to be made by this individual, it can be assumed that heuristics and common sense drive a lot of their business decisions and this makes them very similar to the decision making done by the end consumers, who also engage in buying decisions but are not scientific in their approach.Based on this similarity, this study attempts to explore a simple but profound question that like individual consumers, do these retail customers’ buying decisions also get affected by brand loyalty? In that direction, the study assesses the role of three variables - salesperson quality, self-experience with the brand and perceived company support, for predicting brand loyalty in small unorganized retailers.Using Structured Equation Modelling on data collected from 543 retailers, the proposed hypothesized paths have been tested. The results strongly support the proposition made. This study extends the application of the existing attitudinal – behavioural framework of brand loyalty to retailers and puts forward a vital and a unique way for marketers to get these retailers on-board and work as an influencer to push their brand.