Customer Based Retailer Equity of Apparel Retail Stores
DOI:
https://doi.org/10.17010/ijom/2016/v46/i5/92485Keywords:
Customer Based Retailer Equity
, Retailer Loyalty, Retailer Perceived Quality, Hierarchical Regression, Retailer Association, Retailer AwarenessPaper Submission Date
, March 15, 2015, Paper sent back for Revision, January 6, 2016, Paper Acceptance Date, March 30, 2016.Abstract
The present competitive retail environment demands the rise of the retailer as a brand and its brand equity as of importance. The research gap of mediating nature of associations and perceived quality and their role in converting the customers from the awareness stage to loyalty was the focus of this research. Customer based retailer equity is conceptualized as a multi-dimensional construct comprising of : retailer awareness, retailer associations, retailer perceived quality, and retailer loyalty. A questionnaire based survey was conducted among the female customers of the major apparel retail stores in Coimbatore. The empirical analysis revealed that there is a positive correlation among the four dimensions of retailer equity. The hierarchical regression analysis was carried out by meeting the four requirements of Baron and Kenny (1986) for the mediator variables. Retailer association and retailer perceived quality were found to be acting as mediators between retailer awareness and retailer loyalty relationship, as the effect of retailer awareness was found to be remarkably lower and became non significant in the final model. This research paper highlighted three important theoretical contributions to retailer equity. First, the paper empirically tested the retailer equity model in the Indian retail context. Second, it explained the interrelationships among the four dimensions of retailer equity. Third, the paper attempted to fill in the gap of retailer equity research by demonstrating the existence of potential causal order of relationships among retailer equity dimensions as in the brand equity literature. The conceptual and practical outcome of the empirical results is that the four dimensions can be bundled together as marketing strategies. Strong retail brand awareness will help the retailers to attract customers into the store for the first time. However, a customer is converted into a loyal customer based upon the strength of favorable associations created by the retailers and by meeting the customers' quality expectations.Downloads
Downloads
Published
How to Cite
Issue
Section
References
Aaker, D. A. (1991). Managing brand equity. New York: Free Press.
Aaker, D. A., & Joachimsthaler, E. (2000). The brand relationship spectrum : The key to the brand architecture challenge. California Management Review, 42 (4), 8-23.
Aaker, D.A. (1996). Building strong brands. New York: Free Press.
Agarwal, M. K., & Rao, V. R. (1996). An empirical comparison of consumer based measures of brand equity. Marketing Letters, 7 (3), 237-247.
Ailawadi, K. L., & Harlam, B. (2004). An empirical analysis of the determinants of retail margins: The role of store-brand share. Journal of Marketing, 68 (1), 147-165. doi: http://dx.doi.org/10.1509/jmkg.68.1.147.24027
Ailawadi, K.L., & Keller, K.L. (2004). Understanding retail branding: Conceptual insights and research priorities. Journal of Retailing, 80 (4), 331- 342. doi:10.1016/j.jretai.2004.10.008
Allaway, A. W., Huddleston, P., Whipple, J., & Ellinger, A. E. (2011). Customer-based brand equity, equity drivers, and customer loyalty in the supermarket industry. Journal of Product & Brand Management, 20 (3), 190-204. DOI: http://dx.doi.org/10.1108/10610421111134923
Altintas, H., Isin, B. F., Kilic, S., & Kaufmann, H. R. (2011). Mall equity measurement based on brand equity conceptualization. Journal of Business & Retail Management Research, 5 (2), 55 - 70.
Arnett, D.B., Laverie, D.A., & Meiers, A. (2003). Developing parsimonious retailer equity indexes using partial least squares analysis: A method and applications. Journal of Retailing, 79 (3), 161-170. doi:10.1016/S0022-4359(03)00036-8
Atilgan, E., Aksoy, S., & Akinci, S. (2005). Determinants of the brand equity: A verification approach in the beverage industry in Turkey. Marketing Intelligence and Planning, 23(3), 237-248. DOI: http://dx.doi.org/10.1108/02634500510597283
Aydin, S., & Özer, G. (2005). The analysis of antecedents of customer loyalty in the Turkish mobile telecommunication market. European Journal of Marketing, 39(7/8), 910-925. DOI: http://dx.doi.org/10.1108/03090560510601833
Bailey, R., & Ball, S. (2006). An exploration of the meanings of hotel brand equity. The Service Industries Journal, 26 (1), 15-38. DOI: http://dx.doi.org/10.1080/02642060500358761
Baker W., Hutchinson, W. J., Moore, D., & Nedungadi, P. (1986). Brand familiarity and advertising : Effects on the evoked set and brand preferences. In R. J. Lutz (ed), Advances in consumer research. Provo, UT : Association for Consumer Research.
Balaji, M. S. (2011). Building strong service brands: The hierarchical relationship between brand equity dimensions. The IUP Journal of Brand Management, 8 (3), 7-24.
Baron, R. M., & Kenny, D. A. (1986). The moderator - mediator variable distinction in social psychological research: Conceptual, strategic, and statistical considerations. Journal of Personality and Social Psychology, 51(6), 1173 - 1182.
Berger, D. E. (2003). Introduction to multiple regression. USA : Claremont Graduate University.
Binninger, A. - S. (2008). Exploring the relationships between retail brands and consumer store loyalty. International Journal of Retail & Distribution Management, 36(2), 94-110. DOI: http://dx.doi.org/10.1108/09590550810853057
Blackston, M. (1995). The qualitative dimension of brand equity. Journal of Advertising Research, 35(4), RC2-RC7.
Bloemer, J., de Ruyter, K., & Peeters, P. (1998). Investigating drivers of bank loyalty: The complex relationship between image, service quality and satisfaction. International Journal Bank Marketing, 16 (7), 276 - 286. DOI: http://dx.doi.org/10.1108/02652329810245984
Buil, I., MartÃnez, E., & Chernatony, L. d. (2013). The influence of brand equity on consumer responses. Journal of Consumer Marketing, 30 (1), 62 – 74. DOI: http://dx.doi.org/10.1108/07363761311290849
Burt, S., & Davies, K. (2010). From the retail brand to the retailer as a brand: Themes and issues in retail branding research. International Journal of Retail & Distribution Management, 38 (11/12) , 865 - 878. DOI: http://dx.doi.org/10.1108/09590551011085957
Chieng, F. Y. L., & Goi, C. L. (2011). Customer-based brand equity: A study on interrelationship among the brand equity dimension in Malaysia. African Journal of Business Management, 5, 11856-11862.
Choi, L., & Huddleston, P. (2014). The effect of retailer private brands on consumer-based retailer equity: Comparison of named private brands and generic private brands. The International Review of Retail, Distribution and Consumer Research, 24 (1), 59-78. DOI:10.1080/09593969.2013.821417
Clottey, T. A., Collier, D. A., & Stodnick, M. (2008). Drivers of customer loyalty in a retail store environment. Journal of Service Science (JSS), 1(1), 35-47. DOI: http://dx.doi.org/10.19030/jss.v1i1.4300
Cobb-Walgren, C.J., Ruble, C.A., & Donthu, N. (1995). Brand equity, brand preference, and purchase. Journal of Advertising, 24 (3), 25 - 40. DOI: 10.1080/00913367.1995.10673481
Cronin Jr., J. J., Brady, M. K., & Hult, G. T. M. (2000). Assessing the effects of quality, value, and customer satisfaction on consumer behavioral intentions in service environments. Journal of Retailing, 76 (2), 193-218. doi:10.1016/S0022-4359(00)00028-2
Das, G., Datta, B., & Guin, K. K. (2012). Impact of retailer personality on consumer-based retailer equity: An empirical study of retail brands. Asia Pacific Journal of Marketing and Logistics, 24 (4), 619-639. DOI: http://dx.doi.org/10.1108/13555851211259052
DeCarlo, T. E., Laczniak, R. N., Motley, C. M., & Ramaswami, S. (2007). Influence of image and familiarity on consumer response to negative word-of-mouth communication about retail entities. The Journal of Marketing Theory and Practice, 15 (1), 41-51.
Dick, A. S., & Basu, K. (1994). Customer loyalty: Toward an integrated conceptual framework. Journal of the Academy of Marketing Science, 22 (2), 99-113. doi: 10.1177/0092070394222001
Dyson, P., Farr, A., & Hollis, N.S. (1996). Understanding, measuring, and using brand equity. Journal of Advertising Research, 36 (6), 9-21.
Ernst & Young and Retailers Association of India (RAI). (2014, March). Pulse of the Indian retail market : A survey of CFOs in the Indian retail sector. Retrieved from http://www.rai.net.in/EY-RAI_Pulse_of_Indian_retail_market_Final.pdf
Ernst &Young. (2014). EY's attractiveness survey : India 2014. Enabling the prospects. Retrieved from http://emergingmarkets.ey.com/wp-content/plugins/download-monitor/download.php?id=287
Faircloth, J. B., Capella, L. M., & Alford, B. L. (2001). The effect of brand attitude and brand image on brand equity. Journal of Marketing Theory and Practice, 9 (3), 61-75.
Farquhar, P. H. (1989). Managing brand equity. Journal of Advertising Research, 30 (4), RC7 -RC12.
Feuer, J. (2005). Retailing grows up, looks to image-building. Adweek, 16 (9), p. 8.
Floor, K. (2006). Branding a store: How to build successful retail brands in a changing marketplace. USA : Kogan Page Publishers.
Gil-Saura, I., Ruiz-Molina, M.E., Michel, G., & Corraliza-Zapata, A. (2013). Retail brand equity: A model based on its dimensions and effects. International Review of Retail, Distribution and Consumer Research, 23 (2) , 111-136. DOI: 10.1080/09593969.2012.746716
Grace, D., & O'Cass, A. (2005). An examination of the antecedents of repatronage intentions across different retail store formats. Journal of Retailing and Consumer Services, 12(4), 227-243. doi:10.1016/j.jretconser.2004.08.001
Green, S. B. (1991). How many subjects does it take to do a regression analysis. Multivariate Behavioral Research, 26(3), 499-510. DOI: 10.1207/s15327906mbr2603_7
Grewal, D., Levy, M., & Lehmann, D. R. (2004). Retail branding and customer loyalty : An overview. Journal of Retailing, 80(4), 9- 12.
Hartman, K.B., & Spiro, R.L. (2005). Recapturing store image in customer-based store equity: A construct conceptualization. Journal of Business Research, 58 (8), 1112-1120. doi:10.1016/j.jbusres.2004.01.008
Hennigâ€Thurau, T., & Klee, A. (1997). The impact of customer satisfaction and relationship quality on customer retention: A critical reassessment and model development. Psychology & Marketing, 14 (8), 737-764. DOI: 10.1002/(SICI)1520-6793(199712)14:8<737::AID-MAR2>3.0.CO;2-F
Heskett, J. L., Jones, T. O., Loveman, G. W., Sasser, E., & Schlesinger, L. A. (1994). Putting the service profit chain to work. Harvard Business Review, 72 (2), 164 - 174.
Hyun, S. S., & Kim, W. (2011). Dimensions of brand equity in the chain restaurant industry. Cornell Hospitality Quarterly, 52 (4), 429-437. doi: 10.1177/1938965510397533
Jacoby, J., & Chestnut, R.W. (1978). Brand loyalty management and measurement. New York, NY : John Wiley & Sons.
Jinfeng, W., & Zhilong, T. ( 2009). The impact of selected store image dimensions on retailer equity: Evidence from 10 Chinese hypermarkets. Journal of Retailing and Consumer Services, 16(6), 486-494. doi:10.1016/j.jretconser.2009.08.002
Jones, M.A., Mothersbaugh, D. L., & Beatty, S.E. (2002). Why customers stay: Measuring the underlining dimensions of services switching costs and managing their differential strategic outcomes. Journal of Business Research, 55 (6), 441- 450. doi:10.1016/S0148-2963(00)00168-5
Kamakura, W.A., & Russell, G.J. (1993). Measuring brand value with scanner data. International Journal of Research in Marketing, 10 (1), 9 - 22. doi:10.1016/0167-8116(93)90030-3
Kasulis, J. J., & Lusch, R. F. (1981). Validating the retail store image concept. Journal of the Academy of Marketing Science, 9 (4), 419-435. DOI: 419-435. 10.1007/BF02729882
Kautish, P. (2010). An analytical study on perspectives of brand awareness and its impact upon consumer buying behavior with a view to facilitate managerial decision making in organizations (Doctoral Thesis). Munich : GRIN Publishing GmbH.
Kayaman, R., & Arasli, H. (2007). Customer based brand equity: Evidence from the hotel industry. Managing Service Quality, 17 (1), 92-109. DOI: http://dx.doi.org/10.1108/09604520710720692
Keller, K. L. (1993). Conceptualizing, measuring, and managing customer-based brand equity. Journal of Marketing, 57(1), 1 - 22. DOI: 10.2307/1252054
Keller, K. L. (1998). Strategic brand management: Building, measuring and managing brand equity. Upper Saddle River, NJ : Prentice Hall.
Keller, K. L. (2003). Strategic brand management (2nd ed). Upper Saddle River, NJ : Prentice Hall.
Kumar, R. S., Dash, S., & Purwar, P. C. (2013). The nature and antecedents of brand equity and its dimensions. Marketing Intelligence & Planning, 31(2), 141-159. DOI: http://dx.doi.org/10.1108/02634501311312044
Lane, V., & Jacobson, R. (1995). Stock market reactions to brand extension announcements: The effects of brand attitude and familiarity. Journal of Marketing, 59 (1), 63 - 77. DOI: 10.2307/1252015
Low, G. S., & Lamb Jr., C. W. (2000). The measurement and dimensionality of brand associations. Journal of Product & Brand Management, 9 (6), 350-370. DOI: http://dx.doi.org/10.1108/10610420010356966
Marinova, S. T., Cui, J., & Marinov, M. A. (2008). Customer relationships and brand equity in China's banking services. Revista de Administracao FACES Journal, 7 (3) 11-27.
Martin, G.S., & Brown, T.J. (1990). In search of brand equity: The conceptualization and measurement of the brand impression construct. In T.L. Childers et al. (eds), Marketing theory and applications (Vol. 2., pp. 431 - 438). Chicago, IL: American Marketing Association.
Martineau, P. (1958). The personality of the retail store. Harvard Business Review, 36, 47-55.
Mazursky, D., & Jacoby, J. (1986). Exploring the development of store images. Journal of Retailing, 62 (2),145- 165.
Mittal, A., & Mittal, R. (2008). Store choice in the emerging Indian apparel retail market: An empirical analysis. IBSU Scientific Journal (IBSUSJ), 2 (2), 21-46.
Mohan, B. C., & Sequeira, A. H. (2013). Brand equity and business performance : Towards a conceptual framework. Indian Journal of Marketing, 43 (2), 5 - 10. doi:10.17010/ijom/2013/v43/i2/34047
Olbrich, R., & Windbergs, T. (2006). The relationship between brand loyalty, store loyalty and performance in the retail food sector : A causal-analytical analysis using the example of premium store brands. Retrieved from http://deposit.fernuni-hagen.de/411/1/olbrich_rp4.pdf
Osman, M. Z. (1993). A conceptual model of retail image influences on loyalty patronage behavior. International Review of Retail, Distribution and Consumer Research, 3(2), 133-148. DOI: 10.1080/09593969300000011
Pappu, R., & Quester, P. (2006a). Does customer satisfaction lead to improved brand equity? An empirical examination of two categories of retail brands. Journal of Product and Brand Management, 15(1) , 4-14. DOI: http://dx.doi.org/10.1108/10610420610650837
Pappu, R., & Quester, P. (2006b). A consumer-based method for retailer equity measurement: Results of an empirical study. Journal of Retailing and Consumer Services, 13(5), 317-329. doi:10.1016/j.jretconser.2005.10.002
Pappu, R., & Quester, P. G. (2008). Does brand equity vary between department stores and clothing stores? Results of an empirical investigation. Journal of Product and Brand Management, 17(7), 425 - 435. DOI: http://dx.doi.org/10.1108/10610420810916335
Pappu, R., Quester, P. G., & Cooksey, R. W. (2005). Consumer-based brand equity: Improving the measurement–empirical evidence. Journal of Product and Brand Management, 14 (3), 143-154. DOI: http://dx.doi.org/10.1108/10610420510601012
Park, C. S., & Srinivasan, V. (1994). A survey-based method for measuring and understanding brand equity and its extendability. Journal of Marketing Research, 31 (2), 271 - 288.
Pennemann, K. (2013). Retail internationalization in emerging countries: The positioning of global retail brands in China. DOI : 10.1007/978-3-8349-4492-4
Peter, J. P., & Olson, J. C. (2005). Consumer behavior & marketing strategy (7th ed). New York, NY. McGraw-Hill/Irwin.
Porter, S. S., & Claycomb, C. (1997). The influence of brand recognition on retail store image. Journal of Product & Brand Management, 6 (6), 373-387. DOI: http://dx.doi.org/10.1108/10610429710190414
Reddy, A. (2011). 5 Sectors on a hiring spree. Business Today. November 2011. Retrieved from http://businesstoday.intoday.in/story/retail-infrastructure-healthcare-sectors-to-hire-more-in-india/1/19528.html
Reichheld, F. F., & Sasser, W. E. (1990). Zero defections: Quality comes to services. Harvard Business Review, 68 (5), 105-111.
Rider, L. (2010). A new era for store brands. Progressive Grocer, Store Brands Supplement, 1(1), p. 14.
Rios, R. E., & Riquelme, H. E. (2008). Brand equity for online companies. Marketing Intelligence & Planning, 26 (7), 719 - 742. DOI: http://dx.doi.org/10.1108/02634500810916681
Roychowdhury, I. (2009). Creation of retailer brand equity : Focus on Indian retail. DOI : http://dx.doi.org/10.2139/ssrn.1372729
Ruyter, K. d., Wetzels, M., & Bloemer, J. (1997). On the relationship between perceived service quality, service loyalty and switching costs. International Journal of Service Industry Management, 9 (5), 436- 453. DOI: http://dx.doi.org/10.1108/09564239810238848
Schiffman, L. G., & Kanuk, L. L. (2000). Consumer behavior (7th. edn.). New Jersey, NJ : Prentice Hall International.
Schoenbachler, D. D., & Gordon, G. L. (2002). Multi-channel shopping: Understanding what drives channel choice. Journal of Consumer Marketing, 19 (1), 42-53. DOI: http://dx.doi.org/10.1108/07363760210414943
Severi, E., & Ling, K. C. (2013). The mediating effects of brand association, brand loyalty, brand image and perceived quality on brand equity. Asian Social Science, 9(3), 125-137. DOI: http://dx.doi.org/10.5539/ass.v9n3p125
Shashikala, R., & Suresh, A. M. (2013). Measuring customer based brand equity using Aaker's model. Indian Journal of Marketing, 43 (3), 5 - 13. DOI: 10.17010/ijom/2013/v43/i3/36366
Sivadas, E., & Baker-Prewitt, J. L. (2000). An examination of the relationship between service quality, customer satisfaction, and store loyalty. International Journal of Retail and Distribution Management, 28 (2), 73-82. DOI: http://dx.doi.org/10.1108/09590550010315223
Stone-Romero, E. F., & Rosopa, P. J. (2004). Inference problems with hierarchical multiple regression-based tests of mediating effects. In M. R. Buckley, J. R. B. Halbesleben, A. R. Wheeler (eds.), Research in personnel and human resources management (Volume 23, pp. 249 - 290). Europe : Emerald Group Publishing Limited.
Swoboda, B., Haelsig, F., Schramm-Klein, H., & Morschett, D. (2009). Moderating role of involvement in building a retail brand. International Journal of Retail & Distribution Management, 37(11), 952 - 974. DOI: http://dx.doi.org/10.1108/09590550910999370
Swoboda, B., Haelsig, F., Morschett, D., & Schramm-Klein, H. (2007). An intersector analysis of the relevance of service in building a strong retail brand. Managing Service Quality, 17 (4), 428 - 448. DOI: http://dx.doi.org/10.1108/09604520710760553
Takahashi, H. (2014). Customer-based retail brand equity-prototype model based on equity driver and equity components of Japanese supermarkets. Retrieved from http://www.umds.ac.jp/faculty/ryukabooks/ronsyu/documents/075-095takahashihiroyukisensei.pdf
Taleghani, M., & Almasi, M. (2011). Evaluate the factors affecting brand equity from the perspective of customers using Aaker's model. DOI : http://dx.doi.org/10.2139/ssrn.1944550
Tan, T. M., Ismail, H. B., & Rasiah, D. (2011), Hierarchical chain of consumer-based brand equity: Review from the fast food industry. International Business & Economics Research Journal (IBER), 10 (9), 67-80. DOI: http://dx.doi.org/10.19030/iber.v10i9.5628
The Coca-Cola Retailing Research Council Latin America (CCRRC). (2010). Retailing in emergent markets: Strategic foundations & best practices. Retrieved from http://ccrrc.org/2014/03/04/retailing-emergent-markets-strategic-foundations-best-practices/
Travis, D. (2000). Emotional branding: How successful brands gain the irrational edge. USA : Crown Publishing Group.
Troiville, J. (2012). Retailer brand equity: An approach based on store image. In 15ème colloque Etienne Thil sur la distribution.
Washburn, J.H., & Plank, R.E. (2002). Measuring brand equity: An evaluation of a consumer based brand equity scale. Journal of Marketing Theory and Practice, 10 (1), 46 - 62.
Wei, F., Pintusopon, P., & Zhang, X. (2009). Analysis of self service technology and retail brand equity (Master Thesis). Lund : School of Economics and Management.
Wood, L. (2000). Brands and brand equity: Definition and management. Management Decision, 38 (9), 662-669. DOI: http://dx.doi.org/10.1108/00251740010379100
Wu, J.-F., & Tian, Z.-L. (2008). Effects of selected store image dimensions on retailer equity: Evidence from 10 Chinese hypermarkets. International Conference on Management Science and Engineering 15th Annual Conference Proceedings, ICMSE , Art. no. 4668998 , 759-766. DOI: 10.1109/ICMSE.2008.4668998
WWF-India Report. (2014). Global practices in promoting environmental sustainability : A roadmap for Indian retail. Retrieved from http://www.indiaenvironmentportal.org.in/content/387568/global-practices-in-promoting-environmental-sustainability-a-roadmap-for-india-retail/
Yoo, B., & Donthu, N. (2001). Developing and validating a multidimensional consumer-based brand equity scale. Journal of Business Research, 52 (1), 1-14. DOI:10.1016/S0148-2963(99)00098-3
Yoo, B., Donthu, N., & Lee, S. (2000). An examination of selected marketing mix elements and brand equity. Journal of the Academy of Marketing Science, 28 (2), 195 - 211. doi: 10.1177/0092070300282002
Yu, C., Zhao, P., & Bastin, M. (2008). Understanding retailer branding : From the perspective of consumers' shopping value. In the new development of services marketing and management in the era of globalization. Proceedings of 2008 Summit International Marketing Management Conference, pp. 101-105.
