Understanding relationship

between self store congruency

and
customer store loyalty
Group 15:
Deepika | Gayathri | Gireesh | Kheyati | Vidhi

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
1. 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-Image
Store 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

Store
Image

Image
Congruen
cy

Actual
Image

Image
Differenc
e

Ideal
Image

Loyalty

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 SelfStore 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

Factor 1:
Simple, Modest,
Introvert
Factor 3:
Youthful, Informal

Factor Analysis Result:

1

Simple_Colorful

-0.693

-0.124

0.406

0.398

Modest_Proud

-0.649

-0.040

0.462

0.061

Introvert_Extrovert

-0.729

-0.178

0.188

0.341

Rough_Delicate

-0.009

0.873

-0.096

-0.182

Organized_Unorganized

0.636

-0.841

0.349

-0.025

Rational_Emotional

0.247

0.702

0.376

0.027

Youthful_Mature

-0.022

0.066

-0.636

-0.090

Formal_Informal

0.139

0.225

0.779

-0.007

Economical_Spend

-0.231

-0.138

0.024

-0.903

Modern_Traditional

0.391

0.319

-0.223

0.742

Exciting_Calm

0.266

0.144

-0.256

-0.272

Charge Compliant

0.148

0.250

0.183

-0.122

Factor 2:
Delicate, Organized,
Emotional
Factor 4:
Economical, Traditional

Step 2: Primary Research Survey

Questionnaire measured the following on a 7 point Likert scale:
Demograp
hics

Actual
Self
Image

Ideal
Self
Image

Store
Image

Store
Service
Levels

Custom
er
Loyalty

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

Different statements to measure SAME factor across Actual, Ideal & Store Image

Factors
Simple, Modest,
Introvert
Delicate,
Organized,
Emotional
Youthful,
Informal

Actual Self

Ideal Self

Store Image

On any day, I like to

be in company of lots
of people.
I prefer books and
movies based on
action and adventure
over romantic and
emotional ones.
I prefer to reach out
to my colleagues
informally over cup of
coffee than mails.
I believe living a
simple life where I
spend economically

I would ideally like to be

someone who is a social
butterfly.

The person is
simple and
modest.

I would ideally like to be

someone who thinks from
his/her mind more than
heart.
I would ideally like to have
a regulated white collar job
instead of being an
informal casual guy.

The person is
organized and
sincere.
The person is
young and
enthusiastic.

I would ideally want to live

a modern city life where I
The person is

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

Survey Summarization
Type of Congruence
Actual Self-Ideal Self Image
Difference
Actual Self-Store Image Difference
Actual Self-Store Image
Congruence
Ideal Self-Store Image Difference
Ideal Self-Store Image Congruence

Formula to measure
|Xi- Yi|/4 ; for i= 1 to 4

|Xi- Zi|/4 ; for i= 1 to 4

8- Actual Self-Store Image
Difference
|Yi- Zi|/4 ; for i= 1 to 4
8- Ideal Self-Store Image
Difference
where Actual Self Image = X , Ideal Self
Image = Y , Store Image= Z

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.

Independent Variable:
Actual Self-Store Image
Congruence
Dependent Variable:
Store Loyalty

R Square: 42%
P-Value: 0.21%
Data Used: 20 points with low
actual and ideal self image
difference

Store Loyalty = 0.94 + 0.60 * (Actual Self-Store Image Congruence)

SUMMARY OUTPUT

Regression Statistics

Multiple R

0.646221638

R Square

0.417602405

Adjusted R Square

0.385246983

Standard Error

1.035606959

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

Independent Variable:
Ideal Self-Store Image
Congruence
Dependent Variable:
Store Loyalty

R Square: 26%
P-Value: 2.53%
Data Used: 19 points with
high actual and ideal self image
difference

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

SUMMARY OUTPUT

Regression Statistics

Multiple R

0.511133169

R Square

0.261257116

Adjusted R Square

0.217801653

Standard Error

0.800615112

Hypothesis 3 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 actual self image congruency
is high

Independent Variable:
Actual Self-Store Image
Congruency
Dependent Variable:
Store Loyalty

R Square: 0%
P-Value: 93.95%
Data Used: 19 points with
high actual and ideal self image
difference

P value is not significant. Hypothesis has failed.

SUMMARY OUTPUT

Regression Statistics

Multiple R

0.018657591

R Square

0.000348106

Adjusted R Square

Standard Error

-0.058454947

0.931325566

Hypothesis 4 Testing
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 SelfStore Image Congruency is high as compared to when it is low

Independent Variable:
Dependent Variable:
Store Loyalty
Store
Service
Level
a) 20 entries
with
lower difference between actual and ideal self image were
filtered
b) These were divided into 2 parts (10 entries each): High & low Actual -Store
Image Congruency
c) Regression was run on both these mini-data sets with above dependent &
independent variable
d) 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

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.
When C is High
When C is Low
People gravitate towards stores with
store image matching their actual
self image.

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.

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

When store image is congruent to self image, store service has

a greater positive impact on promoting customer loyalty.

Applications in Shoppers Stop

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.
It needs to analyze:
Who will be the customers if merchandise is premium and masstige?
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.

Consistent Store Image

Retail Store Characteristics

Masstige
brands
Premium
brands
Medium-level
brands
Price

Quality

Layout,
Aestheti
cs

Servic
e Level

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

Appendix Questionnaire (1/5)

Question to Measure Actual Self Image

Appendix Questionnaire (2/5)

Question to Measure Ideal Self Image

Appendix Questionnaire (3/5)

Question to Measure Store Image

Appendix Questionnaire (4/5)

Question to Measure Store Loyalty

Appendix Questionnaire (5/5)

Question to Measure Store Service Level