Retail Project Shoppers Stop

PowerPoint Presentation

Group 15:

Deepika | Gayathri | Gireesh | Kheyati | Vidhi

Understanding relationship between self store congruency and customer store loyalty

What are Actual & Ideal Self Images?

Objectives

1. Actual vs Ideal Self

To understand how the difference between actual and ideal self images and their congruency with the store image impacts the customers loyalty towards the store

2. Self Image Store Image Congruency vs Service

To understand how the self image store image congruency mediates the relationship between store service levels and store loyalty

Methodology

Pilot Survey

Set of 12 factors identified for measuring Actual Self and Ideal Self Image

Factor Analysis used to summarize above set of 12 factors into 4 main factors

2. Primary Research - Survey

39 Shoppers Stop customers surveyed to understand : actual & ideal self images, Shoppers Stops image, perceived service level and customer loyalty

3. Data Analysis

Literature Review (1/2)

I am, ergo I shop: does store image congruity explain shopping behaviour of Chinese consumers?

Hongwei He, Avinandan Mukherjee

Published in Journal of Marketing Management in 2007

The relationship between consumer image congruence and retail store choice suggests that there exist four types of self congruity

Actual self-congruity

Social self-congruity

Ideal self-congruity

Ideal social self-congruity

Understanding of how different types

self-congruity predict consumers

attitude and behaviour towards

retail stores measured in terms of

Customer satisfaction

Perceived Value

Store loyalty

Literature Review (2/2)

Understanding the Role of Retail Store Service in Light of Self-ImageStore Image Congruence

- Aron OCass, Debra Grace

- Published in Psychology & Marketing, in June 2008

The relationships among a consumers service experience, the

servicescape, and perceived value for the money spent on the

service are important theoretical as well as practical issues

This study examines the effect of

retailer service provision and the

retail store environment (servicescape)

on the customers perception of value

for money.

The study also examines

the role of selfstore image

congruence in the above relationships.

Proposed Model

Service Level

Loyalty

Store Image

Actual Image

Ideal Image

Image Congruency

Image Difference

Difference between the actual and ideal self image impacts the relationship between self & store image congruency and customer loyalty

Image congruency mediates the relationship between the store service level & customer loyalty towards the store

Hypotheses

H1:

When difference between actual and ideal self image of a person is low, then store loyalty is high if store image actual self image congruency is high

H2:

When difference between actual and ideal self image of a person is high, then store loyalty is high if store image ideal self image congruency is high

H3:

When difference between actual and ideal self image of a person is high, then store loyalty is high if store image actual self image congruency is high

H4:

When difference between actual and ideal self image of a person is low, then:

Store service level has a greater impact on store loyalty when Actual Self-Store Image Congruency is high as compared to when it is low

Step 1: Factor Analysis - Pilot Survey

12 Characteristics to define a persons image:

Pilot survey conducted across 25 surveyors to summarize and group 12 characteristics into major factors

Survey with lesser & relevant questions is more productive and simpler to conduct
1234Simple_Colorful-0.693-0.1240.4060.398Modest_Proud-0.649-0.0400.4620.061Introvert_Extrovert-0.729-0.1780.1880.341Rough_Delicate-0.0090.873-0.096-0.182Organized_Unorganized0.636-0.8410.349-0.025Rational_Emotional0.2470.7020.3760.027Youthful_Mature-0.0220.066-0.636-0.090Formal_Informal0.1390.2250.779-0.007Economical_Spend-0.231-0.1380.024-0.903Modern_Traditional0.3910.319-0.2230.742Exciting_Calm0.2660.144-0.256-0.272Charge Compliant0.1480.2500.183-0.122
Factor Analysis Result:

Factor 1:

Simple, Modest, Introvert

Factor 2:

Delicate, Organized, Emotional

Factor 3:

Youthful, Informal

Factor 4:

Economical, Traditional

Step 2: Primary Research - Survey

Questionnaire measured the following on a 7 point Likert scale:

Demographics

Customer Loyalty

Actual Self Image

Ideal Self Image

Store Service Levels

Store Image

To measure Actual/Ideal Self-Store Image congruity in an unbiased manner:

Different statements to measure SAME factor across Actual, Ideal & Store Image
FactorsActual SelfIdeal SelfStore ImageSimple, Modest, IntrovertOn any day, I like to be in company of lots of people.I would ideally like to be someone who is a social butterfly.The person is simple and modest.Delicate, Organized, EmotionalI prefer books and movies based on action and adventure over romantic and emotional ones.I would ideally like to be someone who thinks from his/her mind more than heart. The person is organized and sincere.Youthful, InformalI prefer to reach out to my colleagues informally over cup of coffee than mails.I would ideally like to have a regulated white collar job instead of being an informal casual guy.The person is young and enthusiastic.Economical and TraditionalI believe living a simple life where I spend economically on important things in life. I would ideally want to live a modern city life where I can try all the latest brands and luxuries.The person is sophisticated and from high class.

Type of Congruence Formula to measure Actual Self-Ideal Self Image Difference |Xi- Yi|/4 ; for i= 1 to 4Actual Self-Store Image Difference |Xi- Zi|/4 ; for i= 1 to 4Actual Self-Store Image Congruence8- Actual Self-Store Image DifferenceIdeal Self-Store Image Difference |Yi- Zi|/4 ; for i= 1 to 4Ideal Self-Store Image Congruence8- Ideal Self-Store Image Difference
Survey Summarization

where Actual Self Image = X , Ideal Self Image = Y , Store Image= Z

Step 2: Primary Research - Survey

Total Responses : 39

20 responses

Actual Self-Ideal Self Image Difference is Low

19 responses

Actual Self-Ideal Self Image Difference is High

Step 3: Hypothesis 1 Testing

When the difference between actual and ideal self image of a person is low, then the store loyalty is high if store image actual self image congruency is high.

R Square: 42%

P-Value: 0.21%

Independent Variable:

Actual Self-Store Image Congruence

Data Used: 20 points with low actual and ideal self image difference

Dependent Variable:

Store Loyalty

Store Loyalty = 0.94 + 0.60 * (Actual Self-Store Image Congruence)
SUMMARY OUTPUTRegression StatisticsMultiple R0.646221638R Square0.417602405Adjusted R Square0.385246983Standard Error1.035606959Observations20ANOVAdfSSMSFSignificance FRegression113.8422230813.8422230812.906721050.00208121Residual1819.304671921.072481773Total1933.146895CoefficientsStandard Errort StatP-valueLower 95%Upper 95%Lower 95.0%Upper 95.0%Intercept0.9458638660.8675405291.0902820490.289969854-0.8767711522.768498883-0.8767711522.768498883X Variable 10.6052667270.1684763093.5925925250.002081210.2513111370.9592223180.2513111370.959222318

Hypothesis 2 Testing

When the difference between actual and ideal self image of a person is high, then the store loyalty is high if the store image ideal self image congruency is high

Store Loyalty = 3.87 + 0.34 * (Ideal Self-Store Image Congruence)

R Square: 26%

P-Value: 2.53%


Ideal Self-Store Image Congruence

Data Used: 19 points with high actual and ideal self image difference

Dependent Variable:

Store Loyalty
SUMMARY OUTPUTRegression StatisticsMultiple R0.511133169R Square0.261257116Adjusted R Square0.217801653Standard Error0.800615112Observations19ANOVAdfSSMSFSignificance FRegression13.853641473.853641476.0120660090.025312417Residual1710.896737480.640984557Total1814.75037895CoefficientsStandard Errort StatP-valueLower 95%Upper 95%Lower 95.0%Upper 95.0%Intercept3.8683995780.7767528994.9802190430.0001142112.2295942125.5072049442.2295942125.507204944X Variable 10.3435310990.1401051792.4519514690.0253124170.047935010.6391271880.047935010.639127188


When the difference between actual and ideal self image of a person is high, then the store loyalty is high if the store image actual self image congruency is high

P value is not significant. Hypothesis has failed.

R Square: 0%

P-Value: 93.95%


Actual Self-Store Image Congruency

Data Used: 19 points with high actual and ideal self image difference

Dependent Variable:

Store Loyalty
SUMMARY OUTPUTRegression StatisticsMultiple R0.018657591R Square0.000348106Adjusted R Square-0.058454947Standard Error0.931325566Observations19ANOVAdfSSMSFSignificance FRegression10.0051346910.0051346910.0059198570.939569079Residual1714.745244260.867367309Total1814.75037895CoefficientsStandard Errort StatP-valueLower 95%Upper 95%Lower 95.0%Upper 95.0%Intercept5.8305613381.4663011683.9763736580.0009759152.7369362938.9241863842.7369362938.924186384X Variable 1-0.0170334570.221384484-0.076940610.939569079-0.4841138890.450046975-0.4841138890.450046975


When the difference between actual and ideal self image of a person is low, then:

Store service level as a greater impact on store loyalty when the Actual Self-Store Image Congruency is high as compared to when it is low

20 entries with lower difference between actual and ideal self image were filtered

These were divided into 2 parts (10 entries each): High & low Actual -Store Image Congruency

Regression was run on both these mini-data sets with above dependent & independent variable

Results had acceptable p-value and R square.

Case 1: When Actual Self-Store Image Congruency is lower

Store Loyalty = -0.62 + 0.872 * Service Level

Case 2: When Actual Self-Store Image Congruency is higher

Store Loyalty = -2.05 + 1.099 * Service Level

(b value in Case 2) 1.099 > (b value in Case 1) 0.872

This implies that in Case 2, when difference between store image and actual self image is lower, Store loyalty has greater dependence on the service level


Store Service Level

Dependent Variable:

Store Loyalty

Results

Consumers can be broadly divided into 2 categories based on their values of ideal & actual self image congruency.

The behavior of a consumer while choosing a retail store depends on how close his actual self-ideal image is to the store image.

Let C denote Actual Self Ideal Self Image Congruence.

People gravitate towards stores with store image matching their actual self image.

When C is High

There is a wide difference in what people aspire to be and what people believe they are. In such cases, they prefer stores with store image matching their ideal self image.

When C is Low

When store image is congruent to self image, store service has a greater positive impact on promoting customer loyalty.

Note:

It is always better for a store to have an image near the customers ideal image.

Applications in Shoppers Stop

It needs to analyze:

Who will be the customers if merchandise is premium and masstige?

Shoppers Stop always had a premium image and had premium brands. It has now made a downward stretch.

There are Mid level brands, Frequent sales, lack of space to move & confused layout.

Aspirational customers, whose actual-ideal congruency is low, and whose desire to go to a premium store, and

Premium customers, whose actual-ideal congruency is high, and who usually favor a premium store.

According to our findings, loyalty is dependent on congruency of actual or ideal self with the store image. Shoppers Stop can control this variable.

To promote loyalty among the above 2 categories of customers, it needs to present a consistent store image.

Prices: Few PPPs for aspirational customers as they follow ideal self. Sales only on these brands. Keep premium prices for premium customers with sporadic sales.

Quality, Layout & Service Levels: Should be consistent with premium brands as it will work for both aspirational (people chase ideal self) and premium customers (actual self closely matches ideal self).

Consistent Store Image

Retail Store Characteristics

Masstige brands

Premium brands

Medium-level brands

Price

Quality

Layout, Aesthetics

Service Level

Appendix Questionnaire (1/5)

Question to Measure Actual Self Image


Question to Measure Ideal Self Image


Question to Measure Store Image


Question to Measure Store Loyalty


Question to Measure Store Service Level

Retail Project Shoppers Stop

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