Effect on retail store image of a new format development: An explorative study of store image customers' associations in a pick-up point format setting.

Abstract: Title: Effect on retail store image of a new format development: An explorative study of store image customers' associations in a pick-up point format setting Seminar Date: 30th May 2016 Course: BUSN39 Business Administration: Global Marketing Authors: Irene Grimani & Alfredo Privitello Supervisor: Ulf Johansson Key Words: Store image; format development; pick-up point; traditional format; store image dimensions; store image attributes; IKEA; home furnishing retailer; multi-channel; omni-channel; video-elicitation Purpose: The purpose of this research was to explore the effects on store image of a new format development. Specifically, the researchers investigated the new pick-up point format recently introduced in the homefurnishing sector. Moreover, the study intended to evaluate and compare customers’ perceptions of two different types of pick-up point stores introduced by a single retailer. Methodology: The researchers considered the philosophies of epistemology and ontology, and respectively employed the interpretivist and social constructionism stance since the main focus was to understand how customers personally perceive the store image of the new pick-point format, in relation to their reference point (i.e. traditional format). Moreover, the researchers followed an abductive approach and applied qualitative methods for data collection. Specifically, these choices were justified by the need to utilize existing theory on store image of traditional retail formats as a valid starting point, which could then be inductively revised based on empirical insights collected with the use of video-elicitation and semi-structured interviews. Finally, the study adopted a case study strategy to answer the research and sub-research question. Theoretical Perspective: The study focused on reviewing the areas of literature that were valuable for the research purpose. The researchers examined studies including the areas of format development, multi-channel practices as a form of establishing new formats, and the format category of pick-up points. Moreover, a thorough investigation of existing literature about store image and store image attributes was conducted in order to develop the initial theoretical framework of the study. Empirical Data: The researchers applied a multi-method procedure for the data collection. In particular, scholars conducted 19 semi-structures interviews in combination with video elicitation to customers of the two pick-up point formats under investigation. The methods of data collection were coupled with direct observation and documentation in order for the researchers to acquire a holistic view of the functionality and role of the new format. Conclusion: The researchers developed a revised theoretical model which enabled them to show that the new pick-up point format has a significant effect on store image. Moreover, by conducting a comparison between the two different types of pick-up points, the researchers revealed both similarities and differences that can exist within the same new format. Furthermore, the revised theoretical model generated through this study's findings was able to prove that existing literature was confirmed but, in view of its strong focus on traditional formats, had to be enhanced with new insights on the associations customers’ develop when retailers introduce a new format (i.e. pick-up point).