Fashion marketing : building the research agenda 9781845443542, 9780861769735

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Volume 38 Number 7 2004

ISBN 0-86176-973-2

ISSN 0309-0566

European Journal of Marketing Fashion marketing: building the research agenda Guest Editor: Anne Marie Doherty

www.emeraldinsight.com

European Journal of Marketing

ISSN 0309-0566 Volume 38 Number 7 2004

Fashion marketing: building the research agenda Guest Editor Anne Marie Doherty

Access this journal online __________________________ 727 Editorial advisory board ___________________________ 728 Abstracts and keywords ___________________________ 729 French abstracts___________________________________ 732 German abstracts __________________________________ 736 Spanish abstracts __________________________________ 740 Guest editorial ____________________________________ 744 Channel power, conflict and conflict resolution in international fashion retailing Christopher M. Moore, Grete Birtwistle and Steve Burt _________________

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The marketing directions of two fashion retailers Andrew J. Newman and Darshika Patel _____________________________

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The changing nature of Japanese fashion: can quick response improve supply chain efficiency? John Fernie and Nobukazu Azuma _________________________________

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CONTENTS

CONTENTS continued

Category management: a new approach for fashion marketing? Belinda Dewsnap and Cathy Hart __________________________________

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Individual differences, motivations, and willingness to use a mass customization option for fashion products Ann Marie Fiore, Seung-Eun Lee and Grace Kunz ____________________

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Negative symbolic consumption and consumers’ drive for self-esteem: the case of the fashion industry Emma N. Banister and Margaret K. Hogg___________________________

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Fashion clothing consumption: antecedents and consequences of fashion clothing involvement Aron O’Cass ___________________________________________________

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Predicting online purchase intentions for clothing products Eun Young Kim and Youn-Kyung Kim _____________________________

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The impact of color in the e-commerce marketing of fashions: an exploratory study Philip S. Nitse, Kevin R. Parker, Dennis Krumwiede and Thomas Ottaway _______________________________________________

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About the authors _________________________________ 916

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EDITORIAL REVIEW BOARD

Professor Nicholas Alexander University of Ulster, Northern Ireland Dr Ali Bin Al-Khalifa University of Bahrain, State of Bahrain Professor George Avlonitis Athens University of Economics & Business, Greece Professor Michael Baker Westburn Publishers Ltd, UK Dr Susan Baker Cranfield University, UK Professor John Balmer Bradford Management Centre, UK Professor Jim Bell University of Ulster, Magee College, Northern Ireland Professor Bjo¨rn Bjerke Malmo¨ University, Sweden Professor Stephen Brown University of Ulster at Jordanstown, Northern Ireland Professor Francis Buttle Macquarie University, Australia Professor Tamar Cavusgil Michigan State University, USA Professor Bill Clarke University of Ulster, Northern Ireland Professor Brett Collins Auckland University of Technology, New Zealand Professor Nicole Coviello University of Auckland, New Zealand Professor David Cravens Texas Christian University, USA Professor Anthony Cunningham Co. Dublin, Ireland Professor Tevfik Dalgic University of Texas at Dallas, USA Dr Ken Deans University of Otago, New Zealand Professor Adamantios Diamantopoulos Loughborough University, UK Dr John Egan Middlesex University Business School, UK Professor John Fahy University of Limerick, Ireland Dr Kim Fam City University of Hong Kong, Hong Kong Professor Gordon R. Foxall Cardiff University, UK Professor Pervez Ghauri Manchester School of Management, UMIST, UK Professor Christina Goulding University of Wolverhampton, UK Ken Grant Monash University, Australia Professor Gordon Greenley Aston Business School, UK Professor Kjell Grønhaug Norges Handelshoyskole, Norway Professor Lloyd Harris Cardiff Business School, UK Dr Phil Harris Manchester Metropolitan University, UK Professor Roy Hayhurst University of Limerick, Ireland Professor Graham J. Hooley Aston Business School, UK European Journal of Marketing, Dr Gillian Hopkinson Vol. 38 No. 7, 2004 Lancaster University Management School, UK p. 728 Professor Ga´bor Hova´nyi # Emerald Group Publishing Limited Panno´nia UTCA, Hungary

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Professor Claes Hultman ¨ rebro University, Sweden O Professor Mark Jenkins Nottingham University Business School, UK Professor David Jobber University of Bradford, UK Dr La´szlo´ Ka´rpa´ti University of Debrecen, Hungary Professor Hans Kasper University of Maastricht, The Netherlands Professor Erdener Kaynak Pennstate, Harrisburg, Pennsylvania, USA Professor David Kirby University of Surrey, UK Professor Philip Kitchen The University of Hull, UK Professor Simon Knox Cranfield University, UK Professor Raymond LaForge University of Louisville, USA Professor Uolevi Lehtinen University of Tampere, Finland Professor Barbara Lewis Manchester School of Management, UMIST, UK Professor Veronica Liljander Swedish School of Economics and Business Administration, Finland Professor Andrew McAuley University of Stirling, UK Professor Jan Mattsson Roskilde University, Denmark Professor Bill Merrilees Griffith University, Australia Professor Morgan Miles Georgia Southern University, USA Professor Dr Carla Millar TSM Business School, The Netherlands Professor Luiz Moutinho University of Glasgow Business School, UK Professor Patrick Murphy University of Notre Dame, USA Professor Aron O’Cass The University of Newcastle, Australia Professor Adrian Palmer University of Gloucestershire, UK Professor Paul Patterson University of New South Wales, Australia Professor Chad Perry The Gap, Queensland, Australia Professor Nigel Piercy University of Warwick, UK Professor David Shipley University of Dublin, Ireland Dr Wai-sum Siu Hong Kong Baptist University, Hong Kong Professor Richard Speed Melbourne Business School, Australia Professor Peter Turnbull University of Birmingham, UK Professor Caroline Tynan Nottingham University Business School, UK Professor Eduard Urban University of Economics, Czechoslovakia Dr Cleopatra Veloutsou University of Glasgow, Scotland, UK Professor Salvatore Vicari Bocconi University, Milan, Italy Professor Martin Wetzels Eindhoven University of Technology, The Netherlands Professor Len Tiu Wright De Montfort University, UK

Channel power, conflict and conflict resolution in international fashion retailing Christopher M. Moore, Grete Birtwistle and Steve Burt Keywords Fashion industry, International business, Conflict resolution, Management culture Research that has considered the problems faced by internationalising retailers has tended to focus upon such dimensions as non-conducive environmental conditions and inferior internal capability, rather than the conflicts that may arise from the partnerships that are formed in order to facilitate the internationalisation of retailer operations. This study seeks to re-dress this research neglect and does so by focusing upon the fashion sector. The aim of this study is to identify the problems that may arise from fashion retailers’ international relationships. The paper reports the findings of an in-depth study of the relationships of ten international fashion retailers. It is found that these relationships face significant tensions, specifically with respect to strategy non-compliance, perceptual disagreements, and arguments concerning the demarcation of decision making responsibility. The paper concludes by identifying areas for future research consideration.

The marketing directions of two fashion retailers Andrew J. Newman and Darshika Patel Keywords Fashion industry, Market orientation, Marketing strategy, Brand image, Consumer behaviour, Factor analysis Topshop and Gap are important fashion retail brands targeting young style-conscious UK consumers. However, business performance differs widely with Topshop enjoying record sales whilst Gap has recorded losses at a five year high. This paper investigated these variations in performance from a strategic and holistic view of retailer brand image, and the adoption of quality marketing orientation. Answers were sought using key image

attributes as a vehicle to understanding customers’ perceptions of the retailers under study. Survey data were collected from a sample of 300 typical customers who were set the task of ranking image attributes. Factor analysis of customer responses indicated that Gap customers were offered lifestyles in advertising that were out-of-step with the merchandise on the shelves. This reflected a failure on the part of retail management to satisfy the target market. Topshop customers displayed high levels of confidence in the merchandise proposition but stressed the importance of atmosphere and sales staff in overall assessments. This finding reinforces the view that sustainable retailer positioning pivots on a range of marketing activities as well as matching fashion consumers to styles. The research concludes with implications for strategic retail marketing, theory and practice.

The changing nature of Japanese fashion: can quick response improve supply chain efficiency? John Fernie and Nobukazu Azuma Keywords Fashion industry, Quick response retailing, Supply chain management, Industrial countries, Japan The offshore migration of fashion manufacturing from established markets to offshore countries, and the increasingly complex nature of fashion consumption has played a crucial role in transforming the way fashion is perceived in the contemporary world. Globalisation of the fashion industry has allowed consumers to gain easier access to the in-vogue style at an increasingly inexpensive price. This paper explores the future direction of fashion in the industrialised economies through the experience of the Japanese fashion industry from a small manufacturers’ perspective. Empirical findings from a questionnaire survey reveal the fundamental gaps that exist between the theory and the practice, in light of the original premise that quick response (QR) could be the vehicle for a survival strategy of domestic apparel manufacturing in the industrial economies.

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Category management: a new approach for fashion marketing? Belinda Dewsnap and Cathy Hart Keywords Fashion industry, Quick response retailing, Supply chain management As a supply chain management initiative, category management has to date been the almost exclusive preserve of the grocery sector and, within that sector, limited to food categories. This paper proposes that the fashion industry might usefully follow the grocery industry’s lead and implement category management. A comprehensive review of the literature on category management highlights the opportunity for fashion marketing to consider the potential of category management, and the specific research gaps. In operationalising the subsequent research objectives, the paper reports the results of exploratory, in-depth consumer research for a particular category of intimate apparel. The managerial implications of these findings are then discussed in the context of the established eight-step category management process. The overall tentative conclusion of this study is that as a consumer-oriented joint planning tool, category management offers retailer-supplier partnerships in the fashion industry an important adjunct to the industry’s quick response methods. The paper closes with an agenda for future research.

Individual differences, motivations, and willingness to use a mass customization option for fashion products Ann Marie Fiore, Seung-Eun Lee and Grace Kunz Keywords Mass customization, Fashion design, Fashion industry, United States of America Mass customization entails the mass production of individually customized goods and services. Co-design is a mass customization option where a product’s design is based on the customer’s selections from a range of design feature offerings. A model comprised of relationships between

individual differences, motivations for using co-design, and willingness to use co-design was proposed and statistically supported using 521 university subjects from different regions of the USA and the analysis of moment structures (AMOS) statistic. As hypothesized, optimum stimulation level (OSL) predicted two clothing interest factors: experimenting with appearance (EA) and enhancement of individuality (EI). As proposed, OSL and EA predicted the two motivations, trying co-design as an exciting experience and using co-design to create a unique product, whereas EI only predicted using co-design to create a unique product. Both motives were mediating variables between individual differences and willingness to use co-design, but using co-design to create a unique product had a stronger effect. Theoretical and marketing implications were discussed.

Negative symbolic consumption and consumers’ drive for self-esteem: the case of the fashion industry Emma N. Banister and Margaret K. Hogg Keywords Self esteem, Consumption, Product image, Fashion industry Self-esteem is an important motivational drive for consumption involving both the acceptance and rejection/avoidance of symbolic goods. This paper examines the relationship between self-esteem and the rejection of goods and brands within the context of fashion consumption by young professionals. A conceptualisation which accounts for consumers’ use of various strategies in their efforts to maintain or enhance their self-esteem is suggested. A small-scale exploratory study is used to examine first, how consumers invest products and brands with negative symbolic meanings; and second, how this leads consumers to reject products and brands. The importance of understanding negative symbolic consumption when marketing high involvement products such as fashion goods is identified; and the implications for fashion retailers and marketing management are discussed.

Fashion clothing consumption: antecedents and consequences of fashion clothing involvement Aron O’Cass Keywords Fashion industry, Consumption, Consumer behaviour For many years fashion clothing has been an area of interest in consumer research. This study examines the effect of materialism and self-image product-image congruency on consumers’ involvement in fashion clothing. It also examines purchase decision involvement, subjective fashion knowledge and consumer confidence. Data were gathered via a self-completed mail survey, resulting in 478 responses being returned. The results indicate that fashion clothing involvement is significantly effected by a consumer’s degree of materialism, gender and age. Further, it was found that fashion clothing involvement influences fashion clothing knowledge. Finally, the results indicate that fashion clothing knowledge influences consumer confidence in making purchase decisions about fashion.

Predicting online purchase intentions for clothing products Eun Young Kim and Youn-Kyung Kim Keywords Internet, Shopping, Consumer behaviour, Garment industry Shopping online for clothing products is gaining in popularity. This study identified the dimensions of online shopping attributes and predictors of the intention to purchase clothes, jewelry, or accessories based on online shopping attributes and demographic variables. A mailing survey was conducted with 303 adults who had a computer at home and had access to the Internet in the USA. The perceived attributes of online shopping consisted of four factors: transaction/cost; incentive programs; site design; and

interactivity. The transaction/cost factor and the incentive programs factor, along with demographic variables (gender, income and number of children), were important predictors in determining the intention to purchase clothing, jewelry, or accessories via the Internet. Incentive program also mediated the relationship between education level and online purchase intention. This study provides managerial implications for the future online marketing of clothing products.

The impact of color in the e-commerce marketing of fashions: an exploratory study Philip S. Nitse, Kevin R. Parker, Dennis Krumwiede and Thomas Ottaway Keywords Internet, Shopping, Colour, Fashion industry, Trust, Consumer behaviour As the number of Internet purchases of fashion items increases, the problem of inaccurate color representation on the Web becomes more significant. Color inaccuracy has many negative consequences for marketers, including loss of sales, increased returns and complaints, and customer defections. This research reports the findings of a survey conducted as part of an initial investigation into consumer opinions about fashion merchandise purchasing over the Internet. Results indicate that companies are losing customers and sales as a result of having colors on e-commerce sites that do not accurately represent the actual colors of the products being sold. Increased dissatisfaction on the part of consumers leads to greater costs in both customer service and reverse logistics. Further, a majority of the respondents indicated that they would not make additional purchases from an e-tailer if they received items in colors different than they expected. The paper concludes with suggestions for future research.

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French abstracts Pouvoir de canal, conflit et re´solution de conflits dans le commerce de de´tail international de la mode Christopher M. Moore, Grete Birtwistle et Steve Burt Mots-cle´s Industrie de la mode, Commerce international, Re´solution de conflits, Culture de la gestion Les recherches traitant des proble`mes auxquels se heurtent les de´taillants internationaux ont eu tendance a` se concentrer sur des dimensions telles que les conditions peu favorables pre´sentes dans l’environnement et une capacite´ interne infe´rieure, plutoˆt que sur les conflits qui peuvent provenir des associations forme´es dans le but de faciliter l’internationalisation des ope´rations des de´taillants. L’e´tude que voici s’efforce de re´parer cette ne´gligence en analysant le secteur de la mode. Le but de l’e´tude est d’identifier les proble`mes que peuvent susciter les rapports internationaux entre les de´taillants dans le secteur de la mode. L’article rend compte des re´sultats d’une e´tude approfondie sur les rapports entre dix de´taillants internationaux dans le secteur de la mode. Il trouve que ces rapports se heurtent a` des tensions importantes, surtout en ce qui concerne le non respect des strate´gies, les de´saccords perceptuels, et les disputes concernant la de´marcation de la responsabilite´ en matie`re de prise de de´cisions. L’article conclut en identifiant les domaines dans lesquels des recherches devraient eˆtre entreprises a` l’avenir.

Les directions de mercatique de deux de´taillants d’articles de mode Andrew J. Newman et Darshika Patel Mots-cle´s Industrie de la mode, Orientation du marche´, Strate´gie de mercatique, Image de la marque, Comportement du consommateur, Analyse factorielle Topshop et Gap repre´sentent deux marques importantes dans le commerce de de´tail de la mode, qui visent les jeunes consommateurs du Royaume-Uni, conscients de la mode. Cependant, leur performance commerciale diffe`re nettement: Topshop connaıˆt des ventes record tandis que Gap a renregistre´ les pertes les plus importantes depuis cinq ans. L’article que voici examinait ces variations rencontre´es dans la performance, du point de vue strate´gique et holistique de l’image de marque du de´taillant, et l’adoption d’une orientation mercatique vers la qualite´. Il s’efforc¸a de trouver des re´ponses en se servant des attributs principaux de l’image comme ve´hicule afin de comprendre les perceptions que les consommateurs avaient des de´taillants e´tudie´s. Les donne´es requises pour l’enqueˆte furent recueillies aupre`s d’un e´chantillon de 300 clients typiques, qui se virent attribuer la taˆche de classer les attributs de l’image. L’analyse factorielle des re´ponses donne´es par les clients indiquait que les clients de Gap se voyaient offrir, par la publicite´, des styles de vie qui ne correspondaient pas aux marchandises pre´sente´es dans les magasins. Ceci refle´tait une ne´gligence de la part des ge´rants de magasins, car ils e´taient incapables de satisfaire le marche´ vise´. Les clients de Topshop faisaient preuve de niveaux de confiance e´leve´s dans la marchandise propose´e, mais dans leurs e´valuations ge´ne´rales, ils soulignaient l’importance que reveˆtent l’atmosphe`re et le personnel de vente. Ce re´sultat renforce l’opinion selon laquelle le positionnement durable d’un de´taillant de´pend de toute une se´rie d’activite´s de mercatique, ainsi que de son aptitude a` faire correspondre les styles aux consommateurs de modes. Pour conclure, la recherche cite quelques-unes des implications pour la mercatique de de´tail strate´gique, ainsi que pour la the´orie et la pratique.

La nature changeante de la mode japonaise: une re´ponse rapide peut-elle ame´liorer l’efficacite´ de la chaıˆne d’approvisionnement? John Fernie et Nobukazu Azuma Mots-cle´s Industrie de la mode, Commerce de de´tail a` re´action rapide, Gestion de la chaıˆne d’approvisionnement, Pays industriels, Japon La migration de la fabrication des collections, quittant les marche´s e´tablis pour s’installer dans les pays e´trangers, et la nature de plus en plus complexe de la consommation de la mode ont joue´ un roˆle essentiel, en ce qu’elles ont transforme´ la manie`re dont la mode est perc¸ue dans le monde contemporain. La globalisation de l’industrie de la mode a permis aux consommateurs d’avoir un acce`s plus aise´ aux styles en vogue, a` un prix de plus en plus e´conomique. L’article que voici explore la direction que va suivre la mode a` l’avenir dans les e´conomies industrialise´es, en se servant de l’expe´rience retire´e par l’industrie japonaise de la mode, du point de vue d’un petit fabricant. Les re´sultats empiriques d’un sondage entrepris au moyen d’un questionnaire re´ve`lent les lacunes fondamentales qui existent entre la the´orie et la pratique, a` la lumie`re de la pre´misse originelle selon laquelle une re´action rapide (quick response QR) pourrait servir de ve´hicule pour une strate´gie de survie de la fabrication nationale de veˆtements dans les e´conomies industrielles.

Gestion de cate´gories: une nouvelle approche pour la mercatique de la mode Belinda Dewsnap et Cathy Hart Mots-cle´s Industrie de la mode, Commerce de de´tail a` re´action rapide, Gestion de la chaıˆne d’approvisionnement La gestion des cate´gories, qui est une initiative de la gestion de la chaıˆne d’approvisionnement, a jusqu’a` pre´sent e´te´ re´serve´e presque exclusivement au secteur de l’e´picerie et, dans ce secteur, elle se limite aux cate´gories alimentaires. L’article que voici sugge`re qu’il serait utile pour l’industrie de la mode, si elle suivait l’exemple de l’industrie de l’e´picerie en mettant en oeuvre la gestion des cate´gories. Un examen approfondi des publications existantes sur la gestion des cate´gories met en e´vidence les chances qui s’offrent a` la mercatique de la mode de conside´rer les possibilite´s que pre´sente la gestion des cate´gories, et il souligne les lacunes spe´cifiques qui existent dans les recherches. En rendant ope´rationnels les objectifs de recherche subse´quents, l’article rend compte des re´sultats d’une recherche exploratoire approfondie mene´e aupre`s des consommateurs, pour une cate´gorie particulie`re d’articles d’habillement intimes. Il discute ensuite les implications de ces re´sultats pour la direction dans le contexte du processus de gestion des cate´gories e´tabli, qui comprend huit e´tapes. La conclusion ge´ne´rale provisoire de l’e´tude est la suivante: en tant qu’outil de planification commun, oriente´ vers le consommateur, la gestion des cate´gories repre´sente, pour les associations entre de´taillants et fournisseurs qui existent dans le secteur de la mode, un comple´ment important aux me´thodes de re´action rapide de l’industrie. L’article termine en offrant un programme de recherche pour l’avenir.

Diffe´rences individuelles, motivations et consentement a` se servir d’une option de personnalisation de masse pour les articles de mode Ann Marie Fiore, Seung-Eun Lee et Grace Kunz Mots-cle´s Personnalisation de masse, Cre´ation de modes, Industrie de la mode, E´tats-Unis d’Ame´rique La personnalisation de masse implique la production en masse de produits et services individuellement personnalise´s. La coconception est une option de personnalisation de masse, dans laquelle le design d’un produit est fonde´ sur les se´lections faites par le client a` partir d’une gamme de caracte´ristiques de design offertes. Un mode`le renfermant les rapports entre les

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diffe´rences individuelles, les motivations poussant a` utiliser la coconception, et le consentement a` utiliser la coconception fut propose´ et renforce´ par des statistiques, avec la participation de 521 sujets universitaires provenant de diffe´rentes re´gions des E´tats-Unis, et au moyen de la statistique fonde´e sur l’analyse des structures de moment (analysis of moment structures AMOS). Conforme´ment a` l’hypothe`se, le niveau de stimulation optimal (optimum stimulation level OSL) pre´voyait deux facteurs d’inte´reˆt vestimentaire: l’expe´rimentation avec l’apparence (experimenting with appearance - EA) et le rehaussement de l’individualite´ (enhancement of individuality EI). Comme il fut propose´, OSL et EA pre´voyaient les deux motivations, l’essai de la coconception en tant qu’expe´rience passionnante et l’utilisation de la coconception pour cre´er un produit unique, tandis qu’EI ne pre´voyait que l’utilisation de la coconception pour cre´er un produit unique. Les deux motifs e´taient des variables interme´diaires entre les diffe´rences individuelles et le consentement a` utiliser la coconception, mais l’utilisation de la coconception pour cre´er un produit unique avait un effet plus puissant. L’article discute les implications pour la the´orie et la mercatique.

Consommation symbolique ne´gative et passion des consommateurs pour l’amour-propre: Le cas de l’industrie de la mode Emma N. Banister et Margaret K. Hogg Mots-cle´s Amour-propre, Consommation, Image du produit, Industrie de la mode L’amour-propre est une motivation importante pour la consommation, car il implique non seulement l’acceptation mais aussi le rejet/l’e´vitement de marchandises symboliques. L’article que voici examine le rapport qui existe entre l’amour-propre et le rejet de marchandises et de marques, dans le contexte de la consommation d’articles de mode par les jeunes professionnels. Nous sugge´rons une conceptualisation qui explique l’utilisation de diverses strate´gies par les consommateurs qui s’efforcent de garder ou de rehausser leur amour-propre. Nous nous servons d’une e´tude exploiratoire a` petite e´chelle pour examiner tout d’abord la manie`re dont les consommateurs accordent des significations symboliques ne´gatives aux produits et aux marques, et nous essayons ensuite de voir comment cela entraıˆne les consommateurs a` rejeter les produits et les marques. Nous identifions l’importance qu’il y a a` comprendre la consommation symbolique ne´gative pour la mercatique de produits a` implication e´leve´e, comme les articles de mode; nous discutons les implications pour les de´taillants d’articles de mode et les directeurs de mercatique.

Consommation de veˆtements de mode: ante´ce´dents et conse´quences de l’implication des veˆtements de mode Aron O’Cass Mots-cle´s Industrie de la mode, Consommation, Comportement du consommateur Depuis de nombreuses anne´es, les veˆtements de mode suscitent un certain inte´reˆt dans les recherches sur les consommateurs. L’e´tude que voici examine l’effet que le mate´rialisme et l’image de soi, la conformite´ entre le produit et l’image, ont sur l’implication du consommateur dans les veˆtements de mode. Elle examine e´galement l’implication de la de´cision d’achat, la connaissance subjective de la mode et la confiance du consommateur. Les donne´es furent recueillies au moyen d’un questionnaire postal, que les consommateurs remplirent eux-meˆmes et qui produisit 478 re´ponses. Les re´sultats indiquent que l’implication dans les veˆtements de mode est fortement affecte´e par un degre´ de mate´rialisme aupre`s du consommateur, ainsi que par son sexe et son aˆge. De plus, l’auteur a trouve´ que l’implication dans les veˆtements de mode influence la connaissance des veˆtements de mode. Finalement, les re´sultats indiquent que la connaissance des veˆtements de mode influence la confiance du consommateur, lorsqu’il prend des de´cisions d’achat concernant les articles de mode.

Pre´diction des intentions d’achat en ligne pour les produits vestimentaires Eun Young Kim et Youn-Kyung Kim Mots-cle´s Achats sur Internet, Comportement du consommateur, Industrie de l’habillement Les achats en ligne pour les produits vestimentaires deviennent de plus en plus populaires. L’e´tude que voici identifia les dimensions des attributs d’achat en ligne ainsi que les facteurs permettant de pre´dire l’intention d’achat de veˆtements, de bijoux, ou d’accessoires, fonde´e sur les attributs d’achat en ligne et les variables de´mographiques. Un sondage postal fut entrepris aupre`s de 303 adultes posse´dant un ordinateur a` domicile et ayant acce`s a` l’Internet aux E´tatsUnis. Les attributs des achats en ligne qui furent perc¸us recouvraient quatre facteurs: transaction/couˆt, programmes de stimulation, conception du site, et interactivite´. Le facteur transaction/couˆt et le facteur concernant les programmes de stimulation, ainsi que les variables de´mographiques (sexe, revenus et nombre d’enfants) e´taient des facteurs de pre´diction importants, lorsqu’il s’agissait de de´terminer l’intention d’acheter des veˆtements, des bijoux ou des accessoires par l’Internet. Le programme de stimulation permettait e´galement le rapport entre le niveau d’e´ducation et l’intention d’achat en ligne. L’e´tude que voici offre quelques implications pour les chefs d’entreprises pour la mercatique en ligne future des produits vestimentaires.

L’impact de la couleur dans la mercatique du commerce e´lectronique pour les articles de mode: une e´tude exploratoire Philip S. Nitse, Kevin R. Parker, Dennis Krumwiede et Thomas Ottaway Mots-cle´s Achats sur Internet, Couleur, Industrie de la mode, Comportement du consommateur Tandis que le nombre d’achat d’articles de mode sur Internet augmente, le proble`me que constitue la repre´sentation impre´cise des couleurs sur le Web devient de plus en plus important. L’impre´cision des couleurs entraıˆne de nombreuses conse´quences ne´gatives pour les mercaticiens, notamment des pertes de ventes, un accroissement des renvois de marchandises et des re´clamations, et l’abandon par les clients. La recherche que voici rend compte des re´sultats d’un sondage, entrepris dans le cadre d’un examen initial portant sur l’opinion des consommateurs concernant les achats d’articles de mode sur Internet. Les re´sultats indiquent que les socie´te´s perdent leurs clients et leurs ventes, parce que les couleurs qu’ils posse`dent sur leurs sites de commerce e´lectronique ne repre´sentent pas de manie`re pre´cise les couleurs re´elles des produits qu’ils vendent. Un me´contentement accru de la part des clients entraıˆne une hausse des couˆts, non seulement dans le service aux clients, mais aussi dans la logistique inverse. De plus, la plupart des re´pondants indiquaient qu’ils ne feraient plus d’autres achats aupre`s d’un de´taillant e´lectronique, s’ils recevaient des articles ayant des couleurs diffe´rentes de celles auxquelles ils s’attendaient. L’article conclut en offrant quelques suggestions pour les recherches futures.

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European Journal of Marketing Vol. 38 No. 7, 2004 German abstracts # Emerald Group Publishing Limited 0309-0566

German abstracts Macht der Distributionskana¨le, Konflikt und Konfliktlo¨sung im internationalen Modeeinzelhandel Christopher M. Moore, Grete Birtwistle und Steve Burt Stichworte Modebranche, internationale Wirtschaft, Konfliktlo¨sung, Managementkultur B i s h e r i g e U n t e r s u c h u n g e n z u d e n P r o b l e m e n v o n i n t e r n a t i o n a l t a¨ t i g e n Einzelhandelsunternehmen haben sich u¨ berwiegend mit Aspekten wie ungu¨ nstigen Umfeldbedingungen und unzureichenden internen Kompetenzen befasst. Weniger Aufmerksamkeit wurde hingegen Konflikten geschenkt, die aus den Partnerschaften erwachsen ko¨ nnen, die Einzelhandelsunternehmen zur Erleichterung ihrer Internationalisierung eingehen. Die Studie will diese Forschungslu¨cke schließen; als Beispiel wurde die Modebranche gewa¨hlt. Ziel der Untersuchung ist es, die Probleme zu identifizieren, die sich aus den internationalen Beziehung von im Modesektor ta¨ tigen Einzelhandelsunternehmen ergeben ko¨nnen. Der Artikel berichtet u¨ber die Ergebnisse einer detaillierten Studie, die sich mit den Beziehungen von zehn internationalen Modeeinzelhandelsunternehmen auseinander setzte. Es stellte sich heraus, dass diese Beziehungen erheblichen Spannungen unterworfen sind, die vor allem von der Nichteinhaltung vorgegebener Strategien, von der unterschiedlichen Einscha¨ tzung bestimmter Gegebenheiten sowie von Meinungsverschiedenheiten hinsichtlich der Zusta¨ndigkeit bei Entscheidungsprozessen ausgehen. Die Autoren nennen abschließend verschiedene Bereiche, in denen weitere Forschungsarbeiten angezeigt erscheinen.

Die Marketingrichtungen von zwei Modeha¨usern Andrew J. Newman und Darshika Patel Stichworte Modeindustrie, Marktorientierung, Marketingstrategie, Markenimage, Verbraucherverhalten, Faktorenanalyse Topshop und Gap sind zwei wichtige Marken im Modeeinzelhandel, die junge, stilbewusste britische Verbraucher zur Zielgruppe haben. Die wirtschaftliche Performance der beiden Firmen ist jedoch sehr unterschiedlich: Wa¨hrend Topshop Rekordumsa¨tze verbuchen kann, schreibt Gap derzeit die ho¨chsten Verluste seit fu¨ nf Jahren. Der Artikel betrachtet diese Leistungsunterschiede strategisch und holistisch unter dem Gesichtspunkt des Markenimages der beiden Unternehmen und der Qualita¨t ihrer Marketingorientierung. Anhand wichtiger Imageattribute wurde versucht festzustellen, wie die Verbraucher die beiden Einzelhandelsunternehmen sehen. Insgesamt wurden 300 typische Kunden befragt und gebeten, bestimmte Imageattribute nach ihrer Bedeutung einzustufen. Eine Faktorenanalyse der Antworten ergab, dass die Gap-Werbung den Kunden Lebensstile versprach, die nicht unbedingt mit dem Warenangebot auf den Regalen u¨bereinstimmten. Dies bedeutet, dass es dem Management der Kette nicht gelungen war, die Erwartungen ihres Zielmarktes zu befriedigen. Die Topshop-Kunden hingegen zeigten ein hohes Vertrauen in die kommunizierten Warenattribute, betonten jedoch, dass auch die Einkaufsatmospha¨re und das Verkaufspersonal wichtig dafu¨r war, wie sie den Laden bewerteten. Diese Ergebnisse verdeutlichen erneut, dass die nachhaltige Marktpositionierung eines Einzelhandelsunternehmens von verschiedenen Marketingaktivita¨ten sowie von einer guten Abstimmung zwischen den Ka¨ufern der Modeartikeln und den Stilen abha¨ngig ist. Der Artikel endet mit verschiedenen theoretischen und praktischen Schlussfolgerungen fu¨r das strategische Einzelhandelsmarketing.

Vera¨nderungen in der japanischen Mode: Kann eine schnelle Reaktion die Effizienz der Lieferkette verbessern? John Fernie und Nobukazu Azuma Stichworte Modebranche, Quick Response im Einzelhandel, Lieferkettenmanagement, Industriela¨nder, Japan Die Verlagerung der Bekleidungsfertigung von etablierten Ma¨rkten an ausla¨ndische Standorte und die zunehmend komplexeren Verhaltensweisen der Modeverbraucher haben wesentlich zur Vera¨nderung der Modesicht in der heutigen Welt beigetragen. Durch die Globalisierung der Modebranche ist aktuelle Mode heute fu¨r Kunden einfacher und zu einem geringeren Preis zuga¨nglich geworden. Der Artikel setzt sich mit der zuku¨nftigen Entwicklung der Mode in den Industriela¨ndern am Beispiel der japanischen Modebranche auseinander, wobei besonders der Sichtweise eines kleineren Herstellers Rechnung getragen wird. Die empirischen Ergebnisse einer Fragebogenumfrage zeigen bezu¨glich der Ausgangspra¨misse, dass eine schnelle Reaktion (Quick Response – QR) in Industriela¨ndern ein Vehikel der U¨berlebensstrategie der einheimischen Bekleidungsindustrie sein ko¨nnte, eine fundamentale Diskrepanz zwischen Theorie und Praxis auf. Kategoriemanagement: ein neuer Ansatz im Modemarketing? Belinda Dewsnap und Cathy Hart Stichworte Modebranche, Quick Response im Einzelhandel, Lieferkettenmanagement Als Lieferkettenmanagement-Initiative wurde ein Kategoriemanagement bisher fast ausschließlich im Lebensmittelsektor praktiziert und war auch dort vor allem auf den Nahrungsmittelbereich beschra¨ nkt. Die Autoren vertreten den Standpunkt, dass die Modebranche davon profitieren ko¨nnte, nach dem Vorbild der Lebensmittelbranche ein Kategoriemanagement einzufu¨hren. Eine detaillierte Analyse der Fachliteratur zum Thema Kategoriemanagement zeigt die Chancen, die sich dem Modemarketing durch ein Kategoriemanagement erschließen, sowie die bestehenden Lu¨ cken in der bisherigen Forschung. Hieraus wurden Forschungsziele abgeleitet und in Form einer detaillierten exploratorischen Verbraucheruntersuchung zu einer bestimmten Kategorie von Dessous operationalisiert; u¨ ber diese Studie wird hier berichtet. Die Implikationen der Studienergebnisse fu¨ r das Management werden im Kontext des bereits etablierten achtstufigen Kategoriemanagement-Prozesses diskutiert. Die Untersuchung kommt zu dem vorla¨ufigen Schluss, dass das Kategoriemanagement ein verbraucherorientiertes gemeinsames Planungsinstrument ist, das fu¨r die Ha¨ndler-Lieferanten-Partnerschaften in der Modebranche eine wichtige Erga¨nzung zu der dort praktizierten Quick-Response-Methode darstellt. Abschließend werden Vorschla¨ge fu¨r zuku¨nftige Forschungsarbeiten gemacht. Individuelle Unterschiede, Motivation und Bereitschaft zur Verwendung einer Mass-Customization-Option fu¨r Modeerzeugnisse Ann Marie Fiore, Seung-Eun Lee und Grace Kunz Stichworte Kundenindividuelle Massenproduktion, Modedesign, Modebranche, USA Unter Mass Customization versteht man die Massenproduktion von kundenindividuell zugeschnittenen Waren oder Dienstleistungen. Codesign ist dabei eine Form der Mass Customization, bei der der Kunde das Produktdesign aus einer Reihe zur Auswahl stehender Designmerkmale zusammenstellt. Es wurde ein Modell entwickelt, das die Zusammenha¨nge zwischen den individuellen Unterschieden und der Motivation bzw. Bereitschaft zur Verwendung von Codesign einbezieht; das Modell wurde anhand von 521 Testsubjekten von Universita¨ten in unterschiedlichen Regionen der USA sowie mit dem Programm AMOS (Analysis of Moment Structures) statistisch getestet. Wie bereits angenommen, pra¨dizierte ein optimales Stimulationslevel (OSL) zwei verschiedene Faktoren, die fu¨r ein Interesse an Kleidung ausschlaggebend waren: das Experimentieren mit dem Aussehen (experimenting with

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appearance - EA) und die Versta¨rkung der Individualita¨t (experimenting with individuality EI). Vorhersagegema¨ß pra¨dizierten OSL und EA die beiden Motivationen das Ausprobieren von Codesign als interessante Erfahrung bzw. den Einsatz von Codesign zur Schaffung eines einzigartigen Produkts-, wa¨hrend EI nur die Verwendung von Codesign zur Schaffung eines einzigartigen Produkts pra¨dizierte. Beide Motive wirkten als mediatisierende Variablen zwischen den individuellen Unterschieden und der Bereitschaft zur Verwendung von Codesign, der Effekt der Verwendung von Codesign zur Schaffung eines einzigartigen Produkts war jedoch sta¨rker. Die theoretischen Schlussfolgerungen und die Implikationen fu¨r das Marketing werden ero¨rtert. Symbolisch negativ behafteter Konsum und das Streben der Verbraucher nach Selbstachtung: Beispiel Modebranche Emma N. Banister und Margaret K. Hogg Stichworte Selbstachtung, Verbrauch, Produktimage, Modeindustrie Selbstachtung ist ein wichtiger motivierender Faktor beim Konsum von Produkten, wobei sowohl die Akzeptanz als auch die Ablehnung/Vermeidung von symbolischen Waren eine Rolle spielt. Der Artikel untersucht den Zusammenhang zwischen der Selbstachtung und der Ablehnung von Waren und Marken im Kontext des Modekaufverhaltens junger berufsta¨tiger Menschen. Wir schlagen eine Konzeptualisierung vor, die die verschiedenen Strategien einbezieht, die Verbraucher im Bemu¨hen um Erhaltung oder Erho¨hung ihrer Selbstachtung anwenden. Im Rahmen einer kleinen exploratorischen Studie haben wir erstens untersucht, wie es dazu kommt, dass Verbraucher Produkte und Marken mit negativer symbolischer Bedeutung belegen, und zweitens, wie dies eine Ablehnung von Produkten oder Marken durch die Verbraucher nach sich ziehen kann. Wir zeigen, wie wichtig es beim Marketing von Produkten mit hohem Involvement wie z.B. Modeartikeln ist, symbolisch negativ behafteten Konsum zu verstehen, und beschreiben, welche Bedeutung diese Einsichten fu¨r Modeeinzelha¨ndler und das Marketingmanagement haben. Modekonsum: Pra¨missen und Konsequenzen des Interesses an modischer Kleidung Aron O’Cass Stichworte Modebranche, Konsum, Verbraucherverhalten Das Thema Modebekleidung bescha¨ftigt die Verbraucherforschung seit vielen Jahren. Mit der vorliegenden Studie sollte untersucht werden, welchen Effekt Materialismus und die ¨ bereinstimmung von Selbstbild und Produktimage auf das Interesse von Verbrauchern an U modischer Kleidung haben. Ebenfalls untersucht wurde die Beteiligung an Kaufentscheidungen, das subjektive Modewissen und das Selbstvertrauen der Verbraucher. Die Daten wurden mittels einer von den Befragten selbst auszufu¨llenden postalischen Umfrage gesammelt; 478 Antworten gingen ein. Die Ergebnisse zeigen, dass das Interesse von Verbrauchern an modischer Kleidung wesentlich von der Auspra¨gung ihres Materialismus sowie von ihrem Geschlecht und Alter beeinflusst wird. Zudem stellte sich heraus, dass das Interesse an modischer Kleidung wiederum einen Einfluss auf das Wissen u¨ber modische Kleidung hat. Und schließlich zeigen die Ergebnisse, dass das Wissen u¨ber modische Kleidung das Selbstvertrauen beeinflusst, mit dem Verbraucher modische Kaufentscheidungen treffen. Prognose der Online-Kaufabsichten von Bekleidungska¨ufern Eun Young Kim und Youn-Kyung Kim Stichworte Internet-Einkauf, Verbraucherverhalten, Bekleidungsindustrie Der Bekleidungseinkauf via Internet erfreut sich wachsender Beliebtheit. Im Rahmen dieser Studie wurden anhand von Online-Einkaufsattributen und demographischen Variablen bestimmte Dimensionen der Online-Einkaufsattribute sowie Pra¨diktoren fu¨r die Kaufabsicht

in Bezug auf Kleidung, Schmuck oder Zubeho¨r identifiziert. An der postalischen Umfrage nahmen 303 Erwachsene in den USA teil, die zu Hause einen Computer und Zugang zum Internet hatten. Als Online-Einkaufsattribute wurden vier Faktoren einbezogen: Transaktion/ Kosten, Anreizprogramme, Website-Design und Interaktivita¨t. Die Faktoren Transaktion/ Kosten und Anreizprogramme waren zusammen mit demographischen Variablen (Geschlecht, Einkommen, Zahl der Kinder) wichtige Pra¨diktoren fu¨r die Absicht der Befragten, Kleidung, Schmuck oder Zubeho¨r per Internet zu kaufen. Anreizprogramme wirkten mediatisierend zwischen Bildungsstand und Online-Kaufabsicht. Die Studie zeigt auch verschiedene Managementimplikationen fu¨r das zuku¨nftige Online-Marketing von Bekleidungsartikeln auf. Die Bedeutung der Farbe im E-Commerce-Marketing von Mode: eine Erkundungsstudie Philip S. Nitse, Kevin R. Parker, Dennis Krumwiede und Thomas Ottaway Stichworte Internet-Einkauf, Farbe, Modebranche, Vertrauen, Verbraucherverhalten Mit dem zunehmenden Kauf von modischen Artikeln u¨ber das Internet tritt auch vermehrt das Problem in den Vordergrund, dass Farben im Web oft nicht pra¨zise wiedergegeben werden. Die ungenaue Farbdarstellung hat fu¨r die Anbieter eine Reihe von negativen Folgen: den Verlust von Umsa¨tzen, vermehrte Retouren und Beschwerden sowie eine Abwanderung von Kunden. Wir berichten u¨ber die Ergebnisse einer Umfrage, die im Rahmen einer ersten Untersuchung zur Erforschung der Meinung von Verbrauchern u¨ber den Internet-Einkauf von Modeartikeln durchgefu¨hrt wurde. Die Ergebnisse zeigen, dass die inkorrekte Wiedergabe von Produktfarben auf E-Commerce-Sites die Anbieter Kunden und Umsa¨ tze kostet. Eine wachsende Unzufriedenheit der Verbraucher fu¨hrt zu Kostensteigerungen beim Kundendienst und bei der Ru¨cknahmelogistik. Die meisten Befragten gaben auch an, dass sie bei einem elektronischen Anbieter, dessen Produkte Abweichungen gegenu¨ber der erwarteten Farbe aufwiesen, nicht wieder einkaufen wu¨rden. Der Artikel gibt abschließend Anregungen zu weiterfu¨hrenden Untersuchungen zu diesem Thema.

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European Journal of Marketing Vol. 38 No. 7, 2004 Spanish abstracts # Emerald Group Publishing Limited 0309-0566

Spanish abstracts Poder de canal, conflicto y resolucio´n de conflictos en las actividades minoristas de la moda Christopher M. Moore, Grete Birtwistle y Steve Burt Palabras clave Industria de la moda, Negocio internacional, Resolucio´n de conflictos, Cultura de gestio´n La investigacio´n que ha considerado los problemas a los que se enfrentan los minoristas internacionalizadores ha tendido a enfocarse en dimensiones tales como las condiciones ambientales no conductivas y la capacidad interna inferior, en lugar de en los conflictos que pueden surgir de las asociaciones que se forman para facilitar la internacionalizacio´n de las operaciones minoristas. Este estudio intenta revisar esta negligencia en la investigacio´n, y lo hace centra´ndose en el sector de la moda. El objetivo de este estudio es identificar los problemas que puede surgir de las relaciones internacionales de los minoristas de la moda. El trabajo reporta sobre los descubrimientos de un estudio en profundidad de las relaciones de diez minoristas internacionales de la moda. Se descubre que dichas relaciones se enfrentan a tensiones significativas, especı´ficamente con respecto al incumplimiento de estrategias, desacuerdos en percepcio´n y discusiones relacionadas con la demarcacio´n de la responsabilidad sobre la toma de decisiones. El trabajo concluye con la identificacio´n de a´reas para consideracio´n futura en investigacio´n.

Las direcciones de marketing de dos minoristas de la moda Andrew J. Newman y Darshika Patel Palabras clave Industria de la moda, Orientacio´n del mercado, Estrategia de marketing, Imagen de marca, omportamiento del consumidor, Ana´lisis de factores Topshop y Gap son marcas minoristas importantes dentro del mundo de la moda que se dirigen a los consumidores brita´nicos jo´venes y conscientes del estilo. No obstante, el rendimiento comercial difiere ampliamente; Topshop disfruta de un re´cord de ventas, mientras que Gap han registrado las mayores pe´rdidas de los u´ltimos cinco an˜os. Este trabajo investiga dichas variaciones en rendimiento desde un punto de vista estrate´gico y holı´stico de la imagen de marca minorista, y la adopcio´n de una orientacio´n de marketing de calidad. Se buscaron respuestas utilizando atributos clave de imagen como vehı´culo para comprender las percepciones del cliente de los minoristas estudiados. Se recopilaron datos de encuesta entre una muestra de 300 clientes tı´picos, a quienes se les pidio´ que clasificaran atributos de imagen. El ana´lisis de factores de las respuestas de los clientes indico´ que a los clientes de Gap se les ofrecı´a estilos de vida en la publicidad que no se correspondı´an con los productos a la venta. Esto reflejaba un fallo por parte de la direccio´n a la hora de satisfacer al mercado objetivo. Los clientes de Topshop mostraban altos niveles de confianza en la proposicio´n de los productos, pero ponı´an de relieve la importancia de la atmo´sfera y del personal de ventas en las evaluaciones globales. Este descubrimiento refuerza la opinio´n de que una posicio´n minorista sustentable pivota en una gama de actividades de marketing, ası´ como en compaginar a consumidores de moda con estilos. La investigacio´n concluye con implicaciones para el marketing minorista estrate´gico, la teorı´a y la pra´ctica.

La naturaleza cambiante de la moda japonesa: ¿puede una respuesta ra´pida mejorar la eficiencia de la cadena de suministro? John Fernie y Nobukazu Azuma Palabras clave Industria de la moda, Minoreo de respuesta ra´pida, Gestio´n de la cadena de suministro, Paı´ses industriales, Japo´n La emigracio´n al extranjero de la fabricacio´n de la moda de los mercados establecidos a paı´ses del exterior, y la creciente complejidad de la naturaleza del consumo de moda han desempen˜ado un papel crucial en la transformacio´n de la forma en que se percibe la moda en el mundo contempora´neo. La globalizacio´n de la industria de la moda ha permitido a los consumidores obtener un acceso fa´cil al estilo en boga por un precio cada vez ma´s bajo. Este trabajo explora la direccio´n futura de la moda en las economı´as industrializadas, a trave´s de la experiencia de la industria japonesa de la moda desde la perspectiva de pequen˜ os fabricantes. Los descubrimientos empı´ricos de una encuesta por cuestionario revelan las lagunas fundamentales que existen entre la teorı´a y la pra´ctica, en relacio´n con la premisa original de que la respuesta ra´pida (quick response QR) podrı´a ser el vehı´culo para una estrategia de supervivencia de la fabricacio´n de productos dome´sticos en las economı´as industriales. Gestio´n de categorı´as: ¿un nuevo planteamiento del marketing de la moda? Belinda Dewsnap y Cathy Hart Palabras clave Industria de la moda, Minoreo de respuesta ra´pida, Gestio´n de la cadena de suministro Como iniciativa de gestio´n de la cadena de suministro, hasta la fecha, la gestio´n de categorı´as ha sido exclusiva del sector de los productos alimenticios y, dentro de dicho sector, se ha limitado a las categorı´as de alimentos. Este trabajo propone que la industria de la moda podrı´a seguir u´tilmente la tendencia de la industria alimentaria e implementar la gestio´n de categorı´as. Una revisio´n completa de la bibliografı´a sobre la gestio´n de categorı´as destaca la oportunidad del marketing de la moda de considerar el potencial de la gestio´n de categorı´as, y las lagunas en las investigaciones especı´ficas. Al operacionalizar los objetivos subsiguientes de investigacio´n, el trabajo reporta los resultados de investigacio´n exploratoria y profunda del consumidor en relacio´n con una categorı´a particular de artı´culos ´ıntimos. Seguidamente, se discuten las implicaciones gestoras de estos descubrimientos dentro del contexto del proceso establecido de gestio´n de categorı´as de ocho pasos. La conclusio´n tentativa general de este estudio es que, como herramienta de planificacio´n conjunta orientada hacia el consumidor, la gestio´n de categorı´as ofrece a las sociedades de minorista-proveedor dentro de la industria de la moda, una adicio´n importante a los me´todos de respuesta ra´pida de la industria. El trabajo concluye con un programa para investigacio´n futura. Diferencias, motivaciones y deseos individuales de utilizar una opcio´n de personalizacio´n en masa para los productos de moda Ann Marie Fiore, Seung-Eun Lee y Grace Kunz Palabras clave Personalizacio´n en masa, Disen˜o de moda, Industria de la moda, Estados Unidos de Ame´rica La personalizacio´n en masa supone la produccio´n en masa de productos y servicios personalizados individualmente. El codisen˜o es una opcio´n de personalizacio´n en masa donde el disen˜o de un producto se basa en las selecciones del cliente entre una gama de ofertas de caracterı´sticas de disen˜o. Se propuso y apoyo´ estadı´sticamente un modelo compuesto de las relaciones entre diferencias individuales, motivaciones para utilizar el codisen˜o y deseo de utilizar el codisen˜o, empleando 521 universitarios de diferentes regiones de los EE UU y el ana´lisis de la estadı´stica de estructuras de momento (‘‘moment structures (AMOS) statistic’’). Como se hipotetizaba, el nivel de estı´mulo o´ptimo (‘‘optimum stimulation level, OSL’’) predijo

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dos factores de intere´s en ropa: experimentacio´n con la apariencia (EA) y realce del individualismo (RI). Como se proponı´a, OSL y EA predijeron las dos motivaciones: probar el codisen˜o como una experiencia excitante, y utilizar el codisen˜o para crear un producto u´nico; mientras que RI so´lo predijo el empleo del codisen˜o para crear un producto u´nico. Ambos motivos fueron variables mediadoras entre las diferencias individuales y la disposicio´n a utilizar el codisen˜o; pero el empleo del codisen˜o para crear un producto u´nico tuvo un mayor efecto. Se discutieron las implicaciones teo´ricas y para el marketing.

742 Consumo simbo´lico negativo y el impulso de los consumidores hacia la autoestima: el caso de la industria de la moda Emma N. Banister y Margaret K. Hogg Palabras clave Autoestima, Consumo, Imagen del producto, Industria de la moda La autoestima es un impulso motivacional importante para el consumo, que involucra tanto la aceptacio´n como el rechazo/evitacio´n de productos simbo´licos. Este trabajo examina la relacio´n entre la autoestima y el rechazo de productos y marcas dentro del contexto del consumo de moda por parte de los profesionales jo´venes. Sugerimos una conceptualizacio´n que tiene en cuenta el uso por parte de los consumidores de varias estrategias en sus esfuerzos por mantener o realzar su autoestima. Utilizamos un estudio exploratorio a pequen˜a escala para examinar, primeramente, co´mo los consumidores aplican significados simbo´licos negativos a productos y marcas; y, en segundo lugar, co´mo ello lleva a los consumidores a rechazar productos y marcas. Identificamos la importancia de comprender el consumo simbo´lico negativo en productos con alta participacio´n de marketing, tales como los artı´culos de moda; y discutimos las implicaciones para los minoristas de la moda y la direccio´n de marketing. Consumo de ropa de moda: antecedentes y consecuencias del intere´s en la ropa de moda Aron O’Cass Palabras clave Industria de la moda, Consumo, Comportamiento del consumidor Durante muchos an˜os la ropa de moda ha sido un a´rea de intere´s en la investigacio´n del consumidor. Este estudio examina el efecto del materialismo y de la congruencia de la autoimagen e imagen del producto en el intere´s de los consumidores en la ropa de moda. Tambie´n examina la participacio´n en las decisiones de compra, el conocimiento subjetivo de la moda y la confianza del consumidor. Se recopilaron datos a trave´s de una encuesta por correo individual, que resulto´ en 478 respuestas. Los resultados indican que el intere´s en la ropa de moda esta´ influido significativamente por el grado de materialismo, la edad y el ge´nero del consumidor. Asimismo, se descubrio´ que el intere´s en la ropa de moda influye sobre el conocimiento de la ropa de moda. Finalmente, los resultados indican que el conocimiento de la ropa de moda influye sobre la confianza del consumidor a la hora de tomar decisiones de compra sobre moda. Prediccio´n de las intenciones de compra en lı´nea en relacio´n con productos de vestir Eun Young Kim y Youn-Kyung Kim Palabras clave Compra por Internet, Comportamiento del consumidor, Industria de la ropa La compra en lı´nea de productos de vestir esta´ ganando popularidad. Este estudio identifico´ las dimensiones de los atributos de la compra en lı´nea y los predictores de la intencio´n de compra de ropa, joyas o accesorios, basado en los atributos de la compra en lı´nea y en variables demogra´ficas. Se realizo´ una encuesta por correo entre 303 adultos que tenı´an un ordenador en casa y acceso a Internet, en los EE UU. Los atributos percibidos de la compra en lı´nea consistieron en cuatro factores: transaccio´n/coste; programas incentivo; disen˜o del sitio; e,

interactividad. El factor de transaccio´n/coste y el factor de programas incentivo, junto con las variables demogra´ficas (ge´nero, ingresos y nu´mero de hijos), fueron predictores importantes para determinar la intencio´n de compra de ropa, joyas o accesorios a trave´s de Internet. Los programas incentivo tambie´n mediaron la relacio´n entre el nivel de educacio´n y la intencio´n de compra en lı´nea. Este estudio ofrece implicaciones gestoras para el marketing en lı´nea futuro de los productos de vestir. El impacto del color en el marketing del comercio electro´nico de las modas: un estudio exploratorio Philip S. Nitse, Kevin R. Parker, Dennis Krumwiede y Thomas Ottaway Palabras clave Compra por Internet, Color, Industria de la moda, Confianza, Comportamiento del consumidor A medida que aumenta el nu´mero de compras por Internet de productos de moda, el problema de la representacio´n inexacta del color en la red adquiere importancia. La inexactitud del color tiene muchas consecuencias negativas para los comercializadores, incluyendo la pe´rdida de ventas, el aumento de las devoluciones y de las quejas, y la desercio´n de clientes. Esta investigacio´n reporta los descubrimientos de una encuesta realizada como parte de una investigacio´n inicial de las opiniones de los consumidores sobre la compra de productos de moda a trave´s de Internet. Los resultados indican que las empresas esta´n perdiendo clientes y ventas como resultado de que los colores en los sitios de comercio electro´nico no representan exactamente los colores reales de los productos que se venden. Un aumento de la insatisfaccio´n por parte de los consumidores conduce a mayores costes de servicio al cliente y de logı´stica inversa. Asimismo, una mayorı´a de los participantes indico´ que no volverı´an a comprar a un minorista electro´nico si recibı´an artı´culos en colores diferentes a los esperados. El trabajo concluye con sugerencias para la investigacio´n futura.

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About the Guest Editor Anne Marie Doherty is a lecturer in the School of Business, Retail and Financial Services at the University of Ulster in Northern Ireland. Her PhD from the University of Strathclyde focused on the internationalisation of fashion retailing. Her research interests include fashion marketing, the internationalisation of fashion retailing and international retail franchising. She has published in journals such as the Journal of Marketing Management, the International Marketing Review and the International Review of Retail Distribution and Consumer Research. Previously she has been guest editor of the International Marketing Review and the International Journal of Retail & Distribution Management.

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Fashion marketing: building the research agenda Introduction Most fashion marketing commentators, both academic and practitioner alike, would agree that fashion is the means by which we express our identity. Fashion is in a constant state of flux and it is about much more than simply the clothes we wear. Fashion is now as much about lifestyle as it is about clothing. As such the marketing of fashion products, from clothing to accessories and home furnishings, has become an integral element of our everyday lives and identities. Despite this cultural phenomenon, academic fashion marketing research has not kept pace with practical industry developments, certainly not from a European or UK perspective. Recent years, however, have witnessed a gradual identification of fashion marketing as a growing area for academic research. Fashion marketing texts such as those by Hines and Bruce (2001) and Jackson and Shaw (2001) along with the publication of the sector specific Journal of Fashion Marketing and Management have made significant contributions to this growing research agenda. Further, in the UK a range of third-level institutions now offer fashion marketing and management courses, particularly at the Masters level, acknowledging the increasingly important demand from the fashion sector for specialist graduates. This would reflect the US trend for fashion marketing education. Indeed, to date, apart from relatively recent developments, fashion marketing research has been almost exclusively the domain of US-based academics researching the US market. In terms of the relative dearth of fashion marketing research, one typical example of this is with regard to the internationalisation of fashion retailing. The international retail literature is replete with studies on the food sector, with limited attention being focused on the fashion sector. This research neglect would seem anomalous given that due to issues such as the size of stores, potential economies of replication and ease of market entry and exit, the fashion sector is more suited to internationalisation than the food sector (Dawson, 1994; Moore, 1997; Fernie et al., 1998; Doherty, 2000). On a practical level, in terms of the numbers of retail stores overseas, the fashion sector far outstrips the food sector. Nonetheless, research on the internationalisation of fashion retailing remains limited. The late 1990s witnessed welcome efforts from authors such as Moore (1998) and Fernie et al. (1998) to redress this balance by focusing on various aspects of international fashion retailing but much remains to be done. Therefore, one specific aim of this special issue is to highlight the fashion sector as an interesting growth area in marketing research and to encourage future academic work in the area. As the fashion sector evolves due to globalisation, new technology and demanding consumers, academic fashion marketing research needs to keep pace.

Therefore, this special issue aims to firmly position fashion marketing in the mainstream marketing literature and, as a result, encourage an increase of academic output on fashion marketing issues. Current research The papers submitted for this special issue reflect the diversity of the research area that is fashion marketing. The papers published here can be tentatively grouped into four main areas: fashion retail marketing, operational issues in fashion marketing, consumption and fashion marketing and the impact of the Internet on fashion marketing. Fashion retail marketing covers a myriad of potential research areas. The two papers in this section examine the internationalisation of fashion retailing and the marketing approaches taken by two fashion retail firms operating in the domestic UK market. Moore, Birtwistle and Burt, in the first of these papers, examine channel power, conflict and conflict resolution in international fashion retailing. Their paper reports findings from a qualitative study of ten international fashion retailers which examines the relationships of these fashion retailers with their channel members in international markets. They find that the relationships the international fashion retailers engage in face significant tensions, specifically with regard to strategy non-compliance, perceptual disagreements and arguments concerning the demarcation of decision-making responsibility. In the second of the fashion retail marketing papers, Newman and Patel explore the marketing directions of two retailers, namely Gap and Topshop, in the UK market. Based on survey data, the authors investigate the performance of both fashion retailers from a strategic and holistic view of brand image and the adoption of a quality marketing orientation. Using key image attributes the paper endeavours to explore customers’ perceptions of the two retailers. They find that sustainable retailer positioning pivots on a range of marketing activities as well as matching fashion consumers to styles. The operationalisation of fashion marketing is the second theme explored in this special issue. The first two papers address two dimensions of supply chain management, that is, the impact of quick response on the efficiency of the fashion supply chain and the potential of category management for fashion marketing. The third paper examines the specific topic of mass customisation of fashion products and the factors that motivate consumers to choose the mass customisation option. Azuma and Fernie continue the internationalisation of fashion marketing theme initiated by Moore et al. by examining the globalisation process of the fashion industry and the reality of quick response as the survival strategy of domestic manufacturing in the industrialised economies. The focus of their paper is the Japanese fashion industry from the perspective of small manufacturers. They examine the changing nature of the Japanese fashion industry before discussing the quick response (QR) concept and quick response initiatives in Japan. This provides context for the empirical work which analyses the benefits and potential drawbacks of QR practice in the mid-to-down stream of the fashion supply chain. Dewsnap and Hart examine a further supply chain issue in fashion marketing, namely, category management. Traditionally associated with the food sector, their paper explores the potential of category management for fashion retailers. Specifically, the paper reports the results of an exploratory study that seeks to clarify the role of

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consumer behaviour research in category management. This is achieved by identifying how the collected consumer intelligence can inform a supplier-retailer’s joint category management planning process. Their overall conclusion is that as a consumer-oriented joint planning tool, category management offers retailer-supplier partnerships in the fashion industry an important adjunct to the industry’s quick response methods. Consumers’ willingness to use a mass customisation option for fashion products forms the focus of the work by Fiore, Lee and Kunz. Mass customisation, they maintain, is a response to consumers’ need not simply for services but for experiences. It can increase the value for the customer through the development of differentiated, unique products and services. A growing number of fashion retailers are turning to mass customisation as a means of meeting the high demands of some consumers therefore it offers an alternative operational mode for the retailer and a differentiated high-involvement shopping experience for the consumer. As such Fiore et al.’s work applies the concept of mass customisation to the fashion sector and tests a model linking individual differences between consumers as predictors of motivations and these motivations as predictors of willingness to use a mass customisation option for fashion products. Their findings have significant implications both for retailers, manufacturers and consumers alike. The theme of consumer behaviour issues in fashion marketing is continued in the contributions of Banister and Hogg and O’Cass. Banister and Hogg examine the issue of negative symbolic consumption and consumers drive for self-esteem in the context of the fashion industry while in a related theme, O’Cass investigates the effect of materialism and self-image product-image congruency on consumers’ involvement in fashion clothing. The relationship between self-esteem and the rejection of goods and brands within the context of fashion consumption by young professionals forms the basis of the work presented by Banister and Hogg. They assert that in the case of the fashion market, consumers are defined as much by what they choose to reject as by what they actively purchase and display. Understanding why fashion consumers reject products and brands is a significant concern for fashion marketing management. Therefore, the authors suggest a conceptualisation that accounts for consumers use of a variety of strategies in their efforts to maintain or enhance self-esteem. As a result they identify the importance of understanding negative symbolic consumption when marketing high involvement products such as fashion goods for fashion retailers and fashion marketing managers. While Banister and Hogg address the issue of why consumers reject fashion products, O’Cass investigates the issues that lead to consumer purchasing decisions and fashion clothing involvement. He explores the view that materialism, gender and age are important antecedents of consumer involvement in fashion clothing. Consequently, fashion clothing involvement and knowledge of fashion are antecedents of consumers’ confidence in making fashion clothing related decisions. A framework based on these factors is produced with O’Cass concluding that “in the context of fashion clothing, we are what we wear. In reality, we are who our clothes allow us to be.” The increasing role of the Internet in fashion marketing has been highlighted elsewhere (Hines and Bruce, 2001) and remains a key theme of the papers submitted for this special issue. Kim and Kim further the work of O’Cass on factors influencing purchase intention of fashion products by examining the factors that influence consumers to purchase fashion products online. Based on a US sample of consumers,

their study initially identified that the perceived attributes of online shopping consisted of four factors: transaction/cost, incentive programmes, site design and interactivity. The found that the transaction/cost factor and incentive programmes along with demographic variables of gender, income and number of children, were important predictors in determining the intention to purchase fashion products online, be they clothing, jewellery or accessories. In the final paper in the special issue, Nitse et al. further the theme of fashion marketing on the Internet by examining one critical aspect of the process, that is, the problem of inaccurate colour representation of fashion products on the Web. Colour inaccuracy, they maintain, has many negative consequences for marketers including loss of sales, increased returns and complaints and customer defections. Based on survey data, they conclude that fashion companies are losing customers and sales as a result of having colours on e-commerce sites that do not accurately represent the colours of the products being sold. When consumers consequently become dissatisfied with the service they are receiving, this in turn leads to greater costs for the company in terms of reverse logistics and customer service. Possibly more significantly, Nitse et al. report that the majority of respondents indicated that they would not make additional purchases from a fashion e-tailer if they received items in colours different than they expected. Conclusion The papers presented in this special issue highlight four key areas in fashion marketing research. These contributions also reflect the fact that fashion marketing research tends to focus more on consumer issues to the detriment of studying fashion marketing from the managerial perspective. This is also true of all those paper submitted for review. It is essential, therefore, that the ongoing research agenda takes more cognizance of understanding fashion marketing issues at the corporate level. Furthermore, researchers should be encouraged to explore alternative methodological options to balance the over-emphasis on the quantitative survey techniques that abound in the area. Placing greater emphasis on qualitative research methods would help to provide added depth to this domain that has tended to employ quantitative methods to investigate research questions. In conclusion, it is hoped that this special issue will make a significant contribution to pushing the fashion marketing research agenda forward and will provide further impetus for academic research in the area. On a final note I would like to sincerely thank the editors of the European Journal of Marketing Professors David Carson and Audrey Gilmore for giving me the opportunity to edit this special issue and for their support throughout. I would also like to voice my sincere thanks to all the contributors and reviewers without whom this special issue could not have been possible. Anne Marie Doherty Guest Editor References Dawson, J.A. (1994), “The internationalisation of retailing”, Journal of Marketing Management, Vol. 10, pp. 267-82. Doherty, A.M. (2000), “Factors influencing international retailers’ market entry mode strategy: qualitative evidence from the UK fashion sector”, Journal of Marketing Management, Vol. 16 No. 1-3, pp. 223-46.

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Fernie, J., Moore, C. and Lawrie, A. (1998), “A tale of two cities: an examination of fashion designer retailing within London and New York”, Journal of Product & Brand Management, Vol. 7 No. 5. Hines, T. and Bruce, M. (2001), Fashion Marketing: Contemporary Issues, Butterworth-Heinemann/Chartered Institute of Marketing, Oxford. Jackson, T. and Shaw, D. (2001), Mastering Fashion Buying and Merchandise Management, Macmillan Master Series, Basingstoke. Moore, C. (1997), “La mode sans frontie`res: the internationalisation of fashion retailing”, Journal of Fashion Marketing and Management, Vol. 1 No. 4, pp. 345-56. Moore, C. (1998), “L’internationalisation du preˆt-a`-porter: the case of Kookai and Morgan’s entry in the UK fashion market”, Journal of Fashion Marketing and Management, Vol. 2 No. 2, pp. 153-8. List of reviewers Professor Nicholas Alexander, University of Wales, Aberystwyth. Professor Stephen Arnold, Queen’s University, Canada. Professor Gary Bamossy, University of Utah. Professor Jim Bell, University of Ulster, Magee. Dr Grete Birtwistle, Glasgow Caledonian University. Professor Margaret Bruce, Manchester Business School. Professor Ian Clarke, Lancaster University. Professor Gary Davies, UMIST. Dr Keri Davies, University of Stirling. Dr Bill Donaldson, University of Strathclyde. Dr John Egan, University of Middlesex. Professor Paul Freathy, University of Stirling. Dr Fiona Harris, Open University. Dr Margaret Hogg, UMIST. Tim Jackson, London College of Fashion. Professor Richard Jones, Manchester Metropolitan University. Dr Malcolm Kirkup, University of Birmingham. Malcolm Lochhead, Glasgow Caledonian University. Professor Peter McGoldrick, Manchester Business School. Dr Ruth Marciniak, London Metropolitan University. Dr Barry Quinn, University of Ulster at Coleraine. Ruth Schmidt, Manchester Metropolitan University. Dr Josefina Simova, Technical University of Liberec, Czech Republic. Professor Leigh Sparks, University of Stirling. Professor Brenda Sternquist, Michigan State University. Dr Lorna Stevens, University of Ulster, Magee. Dr Gary Warnaby, University of Salford. Dr Anna Watson, University of Surrey. Dr Bill Webb, London College of Fashion. Dr Maureen Whitehead, Manchester Metropolitan University. Professor Gillian Wright, Liverpool John Moores University.

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Channel power, conflict and conflict resolution in international fashion retailing Christopher M. Moore and Grete Birtwistle Glasgow Centre for Retailing, Division of Marketing, Glasgow Caledonian University, Glasgow, UK, and

Steve Burt

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Institute for Retail Studies, Department of Marketing, University of Stirling, Stirling, UK Keywords Fashion industry, International business, Conflict resolution, Management culture Abstract Research that has considered the problems faced by internationalising retailers has tended to focus upon such dimensions as non-conducive environmental conditions and inferior internal capability, rather than the conflicts that may arise from the partnerships that are formed in order to facilitate the internationalisation of retailer operations. This study seeks to re-dress this research neglect and does so by focusing upon the fashion sector. The aim of this study is to identify the problems that may arise from fashion retailers’ international relationships. The paper reports the findings of an in-depth study of the relationships of ten international fashion retailers. It is found that these relationships face significant tensions, specifically with respect to strategy non-compliance, perceptual disagreements, and arguments concerning the demarcation of decision making responsibility. The paper concludes by identifying areas for future research consideration.

Introduction The process of internationalising retail operations is relationship dependent. The relationship may involve the internationalising retailer and an external company, such as a franchisee or a joint venture partner. Alternatively, the partnership may be internal, bringing together the management team within the home market with the management of their foreign subsidiary company. What is clear from previous studies is that these relationships are crucial to the effective transference of a retailer’s brand and format from one country to another (Hollander, 1970; Burt, 1986; Dawson, 1994, 2000; Alexander, 1997; Quinn, 1998, 1999). The literature that considers the problems and issues that internationalising retailers face has developed in recent years (Williams, 1992; McGoldrick and Fryer, 1993; Alexander, 1997). These studies have, however, tended to focus more upon the obstacles emanating from adverse environmental and competitive conditions or internal non-capability rather than upon the tensions and conflicts which stem from the exercise of power within relationships in international retailing. Any review of the problems arising from the business relationships which support retailer internationalisation have at best identified, but not extensively considered, the issues of power, conflict and conflict resolution. Given this apparent research neglect, the purpose of this study is to explore the conflicts that arise within, and as a result of, the relationships that are established as part of the process of internationalising

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fashion retailing operations. Furthermore, the study considers the mechanisms by which relationship-related conflicts are resolved. The specific focus for the study is the fashion sector. This has been selected for two principal reasons. The first is because fashion retailers utilise a variety of foreign market entry methods (and therefore engage in a variety of relationship forms), as part of the process of internationalising their operations. As such, it is reasonable to expect that an analysis of their foreign market activity will identify a broad range of relationship-derived problems. Secondly, it has been noted that some of the most prolific and successful international retailers are to be found in the fashion sector (Dawson, 1994; Fernie et al., 1998; Doherty, 2000). Therefore, it is reasonable to assume that a study of their relationships will also identify the mechanisms by which solutions to relationship-related problems are found by international retailers. Literature review As has been noted elsewhere, international retailing has emerged as an important research area in the past 30 years (Akehurst and Alexander, 1996; Clarke and Rimmer, 1997; Dawson, 2000); the antecedent of these studies being the seminal work of Hollander (1970), entitled Multinational Retailing (see Alexander, 1997). Since then, a variety of themes have emerged within the literature, as identified by Doherty (2000), and these relate to the scale and extent of retailer expansion (Brown and Burt, 1992;), the direction of international expansion (Burt, 1993; Davies and Fergusson, 1996); the motivations and methods of foreign market entry (Alexander, 1990; Williams, 1992; Dawson, 1994; Sparks, 1996). Furthermore, a number of studies have considered the foreign market expansion of a number of specific retailers (Treadgold, 1991; Johnson and Allen, 1994; Moore, 1998). More recent studies of retailer internationalisation have begun to consider the issues of power and control in international retail relationships, specifically in relation to international retail franchise relationships (Sparks, 1996; Quinn, 1999; Quinn and Doherty, 2000). However, understanding of these issues within the context of international retailing remains at an incipient stage. Given the lack of conceptual development within this area, it has been recognised that the literature pertaining to marketing channels and agency theory provides a credible foundation for investigations relevant to power, conflict and control in international retail relationships (Quinn and Doherty, 2000). Furthermore, and driven by the fact that a number of the companies included in this study operate as wholly-owned subsidiaries in the UK, contributions from the parent-subsidiary literature are also useful. Issues of power, conflict and control that arise within these literature steams will be considered in detail below. Marketing channels literature Consideration of the behavioural dynamics of channel members is clearly established in the marketing channels literature and in particular issues of dependence, control, power and conflict have been extensively examined (Lusch, 1976; Etgar, 1976, 1978; Lusch and Brown, 1982; Gaski and Nevin, 1985; Frazier, 1983; Frazier and Summers, 1986; Wilkinson, 1996; Yavas, 1998). Pre-eminent is the consideration of power within channel relationships (Stern and Sturdivant, 1987) and the recognition that dependency between channel members gives rise to the exercise of power (Gaski, 1984; Shipley and

Egan, 1992). Furthermore, as Hunt and Nevin (1974) identified, recognition of the pre-eminent function of power within channel relationships is crucial to their understanding, as is the recognition of an asymmetrical balance of power, whereby a member or members is subordinate to the power of some other super-ordinate member (Gaski, 1986; Rawwas et al., 1997). As a means of establishing the sources and nature of power that is exercised by one channel member over others, the work of French and Raven (1959) has proved influential (Hunt and Nevin, 1974; Etgar, 1978). Derived from a consideration of the sources of social power, but commonly utilised within the marketing channels literature, French and Raven (1959) identified five power bases or sources. Reward power is used to achieve channel member compliance through the promise of some mediated reward; coercive power achieves conformity through the threat of punishment; legitimate power is based upon the recognition of authority and legitimate rights; referent power seeks compliance through the pursuit of mutual interests and expert power obtains compliance from the recognition of superior knowledge and expertise. Examining power sources within a marketing channel setting, Hunt and Nevin (1974) proposed that coercive and non-coercive power were the pre-eminent sources of control within marketing channels. While other studies have sought to define and categorise power sources based upon economic or legal perspectives (Manaresi and Uncles, 1995; Falbe and Danbridge, 1991), Yavas (1998) identifies a consensus in the literature which recognises that power within marketing channels is typically exerted by either coercive (i.e. punishment) or non-coercive (i.e. reward) means. A significant result of the exercising of coercive power is the greater likelihood of channel conflict which, in turn, gives rise to dissatisfaction among other channel members (Sibley and Michie, 1982; Stanworth, 1984; Forward and Fulop, 1993; Manaresi and Uncles, 1995; Yavas, 1998). This dissatisfaction has been found to undermine the effectiveness and efficiency of the channel, since it is likely to result in increased costs and a reduction in levels of trust and co-operation. Indeed, it has been suggested that coercion significantly increases the likelihood of channel relationship failure (Mockler and Easop, 1968; Guiltinan et al., 1980; Webb and Hogan, 2002). In their comprehensive review of the behaviour of channel members, Hunt et al. (1985) noted that conflict is a prevalent feature of channel relationships. Lusch (1982) identified three underlying sources of conflict in channel relationships as follows: perceptual incongruity, goal incompatibility and domain dissensus. Perceptual incongruity occurs when channel members perceptions of reality differ in some way, and while these may have the same goals, these may support different solutions to a particular problem. Goal incompatibility occurs when channel members have differing goals and engage in behaviour that gives rise to conflict and dissatisfaction. Stern and Gorman (1969) suggested that goal divergence was the primary driver of channel conflict, while Etgar (1979) identified that goal divergence, the drive for channel member autonomy and attempts to gain absolute control were the primary causes of marketing channel conflict. Similarly, Webb and Hogan (2002) found that the greater the goal incompatibility, the greater the frequency and intensity of channel conflict. Domain dissensus refers to those disputes that arise as a result of disagreements with respect to areas of decision making responsibility. Stern and El-Ansary (1988) found that disputes over who in the channel had the right to make which decision may

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precipitate significant conflict among channel members. Bowersox and Cooper (1992) identified two further sources of conflict. These were communication breakdown (arising from a failure to exchange adequate, appropriate or complete information) and ideological differences, as manifest in non-compatible values, ambitions or beliefs. With the recognition that the application of coercive of power by channel members precipitates channel conflict; increases dissatisfaction and decreases channel performance (Yavas, 1998), it is proposed that the utilisation of non-coercive power increases satisfaction, promotes better channel co-ordination and improves channel effectiveness. With a view to identifying strategies that may reduce channel conflict and enhance performance, Mallan (1969) proposed the building of co-operation among channel members. This is best achieved through the establishment of agreed and fair objectives, which, in turn, improve motivation (Rosenbloom, 1978). Effective communication between and among channel members has been identified as crucial for the development of positive and effective channel relationships (Gill and Stern, 1969; Shipley and Egan, 1992) Furthermore, it has been proposed that effective channel communications improves levels of satisfaction and cooperation among members and ultimately improves channel efficiency and effectiveness (Dwyer, 1980) However, while a consensus exists within the literature that the exercising of non-coercive power by the leading channel member precipitates increased levels of satisfaction among channel members, and that this yields improved channel performance, there is also the recognition that non-coercive approaches are costly, demanding and are therefore difficult to sustain (Grub, 1972; Yavas, 1998).

The international dimension While there is an extensive and comprehensive literature relevant to the nature of power and conflict within marketing channels, the majority of this work is concerned with activities within a domestic business setting (Yavas, 1998; Quinn, 1999). As such, the question that emerges is whether the conflict sources that exist within domestic marketing channels are also applicable to international marketing channels. There is evidence of commonality between domestic and international settings principally with respect to channel conflict (Moore, 1991); the manifestations of that conflict, as well as some debate with respect to the feasibility of adopting non-coercive approaches to managing international marketing channels (Habiband Burnett, 1989). With respect to the latter point, there is evidence from the international franchising literature that the provision of a supportive infrastructure to international franchisees is problematic, not least for reasons of cost (Grub, 1972). As such, the provision of a non-coercive channel management approach within an international setting has been described as non-sustainable and is inevitably superseded by a coercive management strategy based upon legal restrictions (Falbe and Danbridge, 1991). Furthermore, Kaufmann and Leibenstein (1988) argued that issues associated with managing channels that are geographically dispersed, which suffer from communications discord and which are affected by the idiosyncratic nature of national cultures, mean that non-coercive management is impossible to sustain. While some comparisons are available within the literature with respect to the nature of international and domestic channel relationships, there is also the recognition that these international studies are limited in number, as well as coverage.

Consequently, it has been claimed that our understanding of international channel relationships is partial and incomplete (Tuncalp, 1993; Welch, 1992; Yavas, 1998). As was identified at the beginning of this section, consideration of the aforementioned issues within the context of international retail marketing channels is at an early stage and while there is an established literature relevant to the market entry choice of internationalising retailers, these studies have generally failed to consider issues of channel power, conflict and resolution within this context. That said, there is now some recognition of the issues of power, control and conflict specifically within the context of international retail franchising (Quinn, 1998, 1999; Quinn and Doherty, 2000; Doherty, 1999, 2000). An important component of their work has been the drawing together of the marketing channels literature on power and control, with the literature that is concerned with agency theory. By combining both literature strands, Quinn and Doherty (2000) have sought to provide a theoretical underpinning to the examination of power and control within international franchise arrangements. Agency theory Prior to a consideration of the principal findings of Quinn and Doherty’s (2000) research research, it is necessary to first provide a review of the key features of agency theory. Derived from the economics literature (Jensen and Meckling, 1976; Fama and Jensen, 1983) and developed within the context of the standard theory of the firm, agency theory is, according to Quinn and Doherty (2000), based upon the principal-agent relationship whereby the principal (i.e. shareholders) delegate work to the agent (management) who perform devolved management tasks on a day-to-day basis. Having delegated this responsibility to agents, the managers accrue a detailed knowledge of the firm’s operations, of which the principals have neither access, nor often the capability, to understand. This demarcation therefore gives rise to the problem of information asymmetry. Doherty (1999) illustrates how information asymmetry may arise as a result of differences in economic development, cultural practice and regulatory environments which may mean that the agent (such as a franchisee), has more information about operations in a foreign market than the principal (such as a franchisor). Quinn and Doherty (2000) maintain that the existence of information asymmetry is not necessarily a problem in itself, but may emerge as problematic if the goals of either side are incompatible and/or when the agent seeks to use their superior knowledge to the detriment of the principal. The potential for agents to utilise their superior knowledge in their own self-interest is typically described as moral hazard (Doherty, 2000). Given the potential for moral hazard within international retail franchising relationships, Quinn and Doherty (2000) contend that the franchise contract, coupled with the collection of royalty payments and fees, serves to retain power and control on the side of the principal, rather than the agent. Within the context of understanding power and control within international retailing relationships, the contribution of agency theory is threefold. Firstly, it serves to distinguish between participants in the channel – specifically in terms of principal and agent – and therefore underlines the transfer of operational responsibility from principal to agent. Secondly, through the identification of information asymmetry in the relationship, agency theory challenges the assumption that the power of the principal is absolute. Much rather, instances of moral hazard highlight the

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vulnerability of the position of the principal when they devolve power to agents who operate in alien territories and environments. Finally, its application makes clear the importance of the contract that binds the agent to the principal. In effect, the contract typically serves as the instrument that counterbalances the dangers of moral hazard, allowing the principal to severe the relationship as a punishment for errant behaviour. The principal’s power in this respect is not absolute however since the franchisee may also severe the contract relationship. Headquarter (parent)/subsidiary literature Rodrigues (1995) proposed that when businesses establish foreign operations, the management based in the headquarters can either establish a centralised or decentralised relationship between the home and foreign market. The former approach provides little or no decision making autonomy for subsidiary management, while the latter affords local managers with decision making powers relevant to their home operations. Ghoshal and Nohria (1993) identified three governance mechanisms that could be used by parent companies with respect to their foreign subsidiaries. These are presented in Table I. Various studies have considered the dimensions that determine the choice of governance methods in parent/subsidiary relationships (Weisz et al., 1984; Nathans, 1988; Taggart and Harding, 1998). Among the dimensions identified are those relevant to national culture characteristics. Following from the work of Hofstede (1980), Rodrigues (1995) proposed that an understanding of local management culture – particularly with respect to expectations relevant to decision making involvement (power distance), the desire for autonomy (individualism), tolerance of uncertainty and ambiguity (uncertainty avoidance), and the assessment of the extent to which management are ambitious, assertive and competitive (masculinity traits) – provides a context for the selection of an appropriate governance mechanism. Such decisions are also affected by other situational factors such as the degree of local environmental complexity; organisational size; crisis conditions in the local market, as well as central management’s preferences with respect to the control of international operations. In terms of the origins and manifestation of conflict in parent/subsidiary management relationships, recurrent themes in the literature relate to the extent to which the parent company’s strategy is responsive to local market conditions. Prahalad and Doz (1987) provided a comprehensive review of the tensions that arise as

Table I. Governance mechanisms in parent-subsidiary relationships

Governance mechanism

Characteristics

Centralisation

The retention by HQ management of authority in decision making Emphasis upon hierarchical controls

Formalisation

Management of decision making through the implementation of formal systems, established rules and prescribed procedures Extensive use of operating manuals, etc.

Normative integration

Socialisation of management through inter-personal contact and involvement Emphasis upon the development of shared goals, values and beliefs

Source: Based on Ghoshal and Nohria (1993)

a result of the drive to achieve strategic coordination and the global integration of activities, with the need to be responsive to the diverse demands of national markets. Pre-eminent among these tensions are issues surrounding the boundaries of decision making responsibilities; disputes arising from contrasting interpretations of local environments; corporate value incompatibility and partisan rivalry. This literature base, in combination with those others explored above, provide an insight into the nature of power, conflict and conflict resolution in international relationships. The aim of the empirical research is to explore these issues within the specific context of the internationalisation of fashion retailing. Methodology Within marketing research generally and particularly with respect to research related to the internationalisation of retailing, positivist methodologies have tended to dominate. However, as has been recognised by Brown (1995), interpretivist approaches have become more common within the marketing journals, and similarly, the studies of Clarke and Rimmer (1997), Fernie et al. (1998); Quinn (1999) and Doherty (2000), indicate the emergence of the phenomenological paradigm within international retailing studies. The adoption of qualitative methods of data collection, notably in the form of a multi-case study research design for this study is justified on the basis that the issues under investigation are both complex and sensitive. Following from Yin (1994), and Perry (1998), the use of the case study method affords the researcher the opportunity to enter the research field, gain close proximity with those involved in the process of managing international relationships, and so obtain an intimate understanding of the situation. Furthermore, given there is a distinct lack of empirical work in this area of fashion retailer internationalisation, the adoption of a case study method provides an opportunity to obtain rich and relevant data that illustrates the actual experiences of internationalising fashion retailers. Sample selection The focus upon the difficulties associated with retailer internationalisation constitutes one part of a wider study of the internationalisation of fashion retailing. Ten companies were included in this study. Their identities are not revealed here in order to protect their anonymity. The retailers initially replied to a questionnaire that was sent to all foreign fashion retailers with retail outlets in Britain and these subsequently agreed to participate in a more in-depth qualitative study. The final ten companies were accepted for inclusion because of their significant experience of managing international relationships (all had operated stores in foreign markets for at least ten years), their diversity in terms of country or origin, as well as their differences in market positioning and product focus. The case study design Three evidence sources were used: documentary evidence, key informant interviews and direct observation. The interview has been described as the most significant source of information within case study research (Bonoma, 1985; Perry, 1998), and of these Yin (1994) identified two particular types. The first is the open-ended interview, which is generally unstructured in its approach and involves the interviewer asking for facts, as well as the opinions of the interviewee, in a flexible and fluid way. The second

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is the focused interview that is more likely to last for a shorter time period and involves the interviewer following more closely set questions derived from the case study aims and objectives. The latter interview approach was adopted for meetings with company directors. Typically, a structured interview schedule was developed, which was tailored to suit the specific circumstances of each of the case companies, and this was passed to the directors prior to the interview taking place. The Executives’ respective areas of responsibility, which included buying, marketing, operations and distribution, largely influenced the areas covered in these executive interviews. Generally, these interviews focused on strategic matters; the issues relevant to operationalising their trading strategies, as well as the problems inherent to managing relationships with franchisees or with the management of their foreign subsidiary companies. All of these interviews were tape-recorded. For meetings with less senior members of staff, a more open-ended, unstructured approach was used. In these circumstances, a range of topics for discussion were identified which were then adapted to reflect the roles and responsibilities of the staff being interviewed. Among those interviewed were product designers, buyers and merchandisers, export personnel, distribution, promotion and marketing managers, as well as brand managers and staff responsible for advertising. The majority of these interviews were tape-recorded or notes were taken during the course of the interview. A total of forty two interviews were conducted with various representatives of the case companies at their head offices in their home market. Each interview lasted at least one hour, while over half extended to two hours. All but five of the interviews were conducted in English. The five interviews were conducted in French, Italian or German. For these five interviews, the following protocol was adopted: . If not in English, interviewees were asked to identify their preferred language for interview. . The interview schedule was translated from English into French, Italian or German by a professional translator. . The translated interview schedule was then independently back-translated into English in order to maintain linguistic consistency. . For those interviews that were conducted in a language other than English, the researchers were accompanied by a professional interpreter who asked the questions. Through the use of simultaneous translation, the interpreter made constant reference to the researchers for guidance and further elaboration when the need arose. . The interview transcripts were then translated into English by the interpreter and an independent translator. The two sets of transcripts were then compared and any anomalies identified and reconciled. . All transcripts were then verified by interviewees using standard procedures. Interviews were also undertaken with the various individuals responsible for the management of the case companies’ operations within the British market. These included franchise partners, the management of subsidiary companies, as well as wholesale partners. The purpose of these interviews was to ensure that the views of both sides of the international partnership could be obtained. A total of 14 interviews

were carried out with representatives responsible for the case study companies’ British operations. These interviews lasted between one and two hours on average. Adler and Adler (1994) explain that direct observation happens within the natural context of occurrences and requires involvement by the researcher with the actors who normally participate in the observed action and provides the possibility of their witnessing connections, correlations and causes as they unfold. Access was granted by some of the companies to head office based events events such as training sessions; product selection meetings; international corporate advertising and promotions campaign launches. The most important use of documentary evidence in case study research is to use these as sources of corroboration and as a method of augmenting information from other sources (Marshall and Rossman, 1995). Furthermore, documentation provides evidence of corporate activity and previous decisions that may not be easily explained by present company representatives. However, as Miles and Huberman (1994) pointed out, documentary evidence may be biased and researchers must acknowledge that these may not accurately represent actual events. The documentation made available by the case companies included reports detailing company history and organisational structures, company operating manuals, management training manuals, internal company newsletters, press releases, market research reports, photographic stills of stores and products, as well as advertising copy. Findings This section will examine the key areas of conflict identified firstly by the management of the internationalising fashion retailers (described as the central management), followed by the UK-based subsidiary management and franchisees. Given the inclusion of a British management perspective, the responses from central management tend to focus heavily upon their experience of working with British management. This in itself is not detrimental to the study’s findings since the aim is to identify the issues arising from international relationships and is not to provide a representative account of these based upon national differences. Decision making conflict: central management perspective The central management of the internationalising fashion companies identified two broad categories of decision making conflict that they felt to be particularly acute in their relationships with their British management partners. The first category was described as “strategy non-compliance”; the second as “unauthorised decision making”. Strategy non-compliance Strategy non-compliance referred to situations where the British managers “failed to comply or implement strategic plans for the market – ignoring our orders, to put it another way”. British managers were accused of failing to fully implement positioning strategies that had been previously decided and mutually agreed. The form of strategy non-compliance was more fully explained by an international communications director: We need full compliance with our strategy but, for example, the British team argues about everything. We have a clear direction of how we want the business to develop in the UK. We

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decide the range, merchandising, and all the things for positioning. But they do their own thing. They argue for different ranges and advertising and different prices. They want their own powers.

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Further complaints were made that British managers were the most likely to challenge merchandise range decisions and stock allocations, and that they often refused to implement corporate strategies for merchandising, pricing and advertising. By way of explaining why British managers tried to resist having to comply with strategies, an export director with considerable experience of these situations provided the following explanation: I think it is a cultural thing. British managers cannot accept that they are not their own bosses. It’s a very British thing. They are aggressive and competitive. They think they should control the UK. Not us.

While acknowledging that there were differences inherent to the British market, one managing director argued that his management team was capable of accommodating market differences when making strategic decisions. He also suggested that British managers failed to recognise the impact that their local deviations had upon the overall corporate strategy: British management only see their side of things. Every time they make a change, make an alteration, then they are undermining the brand. It causes fragmentation. It kills the image. We must have continuity. Without it, the brand is then dead.

While the literature suggests that conflict may arise for cultural or environmental reasons, the study also found that market success within the UK market has encouraged “over-confidence”, “a desire for independence” and has “killed the sense of co-operation”. Indeed, one company suggested that market success had prompted their British management to challenge the legitimacy of centralised control over local decision making: Achieving success can be your downfall. Success breeds over-confidence. We are very successful within the UK and the USA. That is the major reason why we face resistance to centralised decision making, centralised strategies. That is the tension – you centralise to get things right, success comes, then there is the desire to free-up decisions. That is why we need rules. Procedures. Systems. Without these, we are lost.

Unauthorised decision making The second form of conflict identified by the central management was that of “unauthorised decision making” which involved the making, and in certain situations, the implementation of strategic decisions by British managers without their prior consent. In a minority of cases, before implementing these, British managers did present their strategy proposals to central management for approval, revision and possible implementation. This behaviour, while not condoned by central management, was not always condemned by them either, as is evidenced in the comments of one marketing director: Personally, I think that is a good sign when the British management come-up with their own strategies for growing and improving the business. Provided that they tell us, allow our input and get our go-ahead. It shows initiative. But they have also got to realise and accept that something may seem a good idea for the UK market, but taking the global view, it may be bad for the company.

However, in most cases, these “unauthorised decisions” were instigated and implemented without the prior knowledge and consent of central management. These decisions included the development of separate product ranges for the UK market, the implementation of different merchandising and stock control methods, as well as the creation of UK-specific advertising and promotions campaign. One company described how their UK subsidiary had sacked a senior director without the permission of the central management, while on another occasion, the subsidiary revised UK prices without prior consultation. Unauthorised decisions by the management of subsidiary companies were also tactical in nature and were concerned with issues such as changing the timing of seasonal reductions or altering levels of discount offered to staff. Nevertheless, this did not mean that these were treated as trivial transgressions by the foreign entrants, as is evidenced by the comments of a buying director: Unauthorised decisions are no more than an attempt by the British subsidiary to make their mark. To evade central control. To avoid the rules. It is like a game of cat and mouse.

The management teams of the franchise companies also made unauthorised decisions in strategically significant areas. For example, one company described how their UK franchisee had recruited wholesale stockists and sub-franchisees to facilitate the company’s entry into another country without prior authorisation; while another franchisee closed stores and concessions in the UK without consultation. By way of explaining why British franchisees may make decisions of such importance without prior agreement and support, one market development manager suggested:QUOETIt does not matter how clearly you set the rules down over who decides what, the fact remains that our British franchisee was very accomplished and entrepreneurial. Added to that, they have a lot of their own money tied to the business. They feel that this gave them the right to do things their own way. Often their ideas are good, but that is not how you operate an international fashion company. Success comes from standardisation and centralisation. Not doing your own thing locally.These tensions were not confined to franchise relationships. Two of the case companies suggested that because their company had made particular concessions to allow their British subsidiaries to make their own decisions on matters of local advertising and promotion, and pricing, these managers had developed an appetite for devolved decision making: Because the British market is a strong market for us, and the British management team is very professional, we allowed them to make their own decisions on key issues. That just opened the door, and they kept pushing and pushing for more power. We did panic and put even more controls in.

As has been identified, many of the case companies struggled to reconcile their desire for a standardised management approach across markets with the need to be responsive to challenging and independently-minded British management teams. The following section will consider the tensions and difficulties identified by the British management teams. Decision making conflict: the UK management perspective While acknowledging that it was reasonable for an internationalising retailer to retain control over strategic decisions, there was a clear expectation among British managers

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that they have a direct involvement in those decisions that may affect the performance of the subsidiary or franchise that they managed. Their involvement was justified on the basis that their local knowledge and expertise was superior to that of foreign management. Furthermore, the economic significance of the British market meant, according to the managing director of an UK subsidiary, “that the rule book does not apply to the UK because of its size and importance”. In spite of these arguments, most British managers were subject to high levels of centralised control and rigid management structures. And while acknowledging that certain aspects of decision making had been devolved to their own management team, the managing director of one of the subsidiary companies maintained that these powers were subject to “continual scrutiny, and are challenged and over-ruled by head office”. Inevitably, this situation served as a source of particular tension between both management groups, and according to the same managing director, two key issues were at the heart of these disputes: There are constant disputes over decision making territory. The second problem is that head office management never sees things the way you do. There is a perception disagreement. We know the market; we perceive clearly where the UK business should go. But no, they talk global, but forget that success comes from the local.

The reflections of the other British management teams similarly identified the problems of “decision making territory” and “perception disagreement”, and these are explored in greater detail below. Disputes over decision-making territory The research identified many examples of disputes arising from issues of decision making autonomy. In some cases, the internationalising retailers had explicitly outlined in their company manuals the role and responsibilities of central and local management, along with their respective decision making powers. One managing director of a subsidiary company described how “decision boundaries” had been drawn-up within his organisation as a means of avoiding constant disputes and that these had been formalised in a document signed by both “sides”. This agreement however, proved ineffective: These manuals were really only just lip service. The HQ wants rules and total control. But they cannot really declare that. This sharing idea is was a smoke-screen in the early days.

Disputes were often costly and arguably very serious. One franchisee explained how they had been given permission to source products exclusively for their own market, using a “very tight design brief” approved by the company’s design team. Having committed £25,000 to this product development, the franchisee was told to withdraw the range since franchisees in other markets had complained that the British market enjoyed preferential treatment. The development costs had to be borne in full by the franchisee who subsequently sold the goods to another retail group “at a loss of £7,000 for the disallowed goods and ten times that amount from lost market opportunity”. The problems associated with “decision making territories” were linked to conflicting interpretations of rules and procedures. For example, one subsidiary company explained how they believed they had permission to develop their own promotional campaign within the UK, only to find after having carefully planned what they claimed was “an innovative and expensive campaign”, that their independence

extended only to campaigns aimed at trade (i.e. wholesale) customers. The firm’s marketing manager gave his interpretation of these events:

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In retrospect, I know that they gave us permission without thinking through the implications. This was really the thin end of the wedge. To give us this power would mean anything could now happen. Immediately, the shutters came down. This could not happen.

Perceptual disagreements A second “conflict category” was described by one British director as having stemmed from “opposing and very different views of the world, the business, and the brand”. Local managers complained that central management often misjudged the positioning and reputation of their business within the UK. One director complained that his company initially over-estimated the exclusivity and quality perceptions that British customers had of the company. The consequences of that were significant: Price points were too high, distribution too restricted, and customer dissatisfaction with quality has now increased because of these factors. Really, by over-estimating the brand, the company did not reach its full potential in the market. Only after many battles did they come to realise their error.

Other than perceptual differences in relation to brand positioning, the research also identified conflict with respect to an understanding of British customers’ behaviour and preferences, as well as the competitive nature of the British fashion sector. The implications of these perceptual differences were felt to be significant by British managers in that these provided, what one director described as, “the wrong platform for making key decisions that directly affect performance within the market”. Furthermore, he claimed that because central management failed to recognise the high levels of price competition within the British fashion sector, the company had consistently failed to sanction the price adjustments required in order to ensure price competitiveness. As a result, he argued that “sales have been made unnecessarily difficult because of their poor grasp of the reality of our market”. This lack of understanding of the possibilities of the UK fashion sector meant for another company that it consistently under-priced their ranges within the market. In order to overcome the restrictions imposed from abroad, the subsidiary company (engaging in what central management would perceive as unauthorised decision making), raised the UK retail prices without consent. The retail director justified this action on the basis that his fellow directors were angered and frustrated by the intransigence of their central management and that they had had to act illicitly since “the HQ would never agree, partly because they are so stubborn – They control all decisions with an iron fist rather than grasping opportunities”. As a result of the margin rise, the director claimed that profitability within the uk had risen significantly and as a result, the parent company had “the courage to increase margin with their other markets, even their home market”. As has been identified above, the tensions between central and British-based management were not inconsiderable. The following sections will consider the mechanisms by which both sides sought to resolve these tensions. Sanctions used against British management Various studies have considered the mechanisms by which channel members seek to exert power over channel participants with a view to modifying their behaviour. In

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particular, it has been noted that the use of coercive power is commonly used, particularly where one member of the channel holds considerably more power than other members of the chain (Sibley and Michie, 1982; Stanworth, 1984; Manaresi and Uncles, 1995; Yavas, 1998). From an analysis of the research findings, the various central management teams used a variety of coercive approaches in order to punish the unauthorised decision making and strategy non-compliance of the British-based managers. Reflecting upon these sanctions and punishments, one foreign director suggested: In reality, sanctions do not resolve disputes. They are more about one side re-asserting their authority over the other. They are about us feeling better. But, I know in my heart that they do not make the problem go away.

Some of the sanctions adopted included the complete severing of relations with franchisees or the removal of directors from a subsidiary company. The decision to sever relations with one particular franchisee arose after what was described as a “protracted period of conflict, argument and as a result, poor performance”. It was explained that such drastic action was necessary since rebukes for strategy non-compliance were constantly ignored. The dismissal of senior management from one of the subsidiaries occurred because of their “consistent refusal to do as we told them”. These dismissals were used as a signal to the management of all subsidiary companies that “we make the decisions, we hold power and that is not open to debate”. Less extreme sanctions were also used, including the use of verbal and written reprimands, the administering of financial penalties and the withdrawal of financial support for promotional activity. In a number of cases, what were described as “strict operating guidelines” were introduced in order to indicate dissatisfaction and affect a change in behaviour. From the British management’s perspective, the use of punishments and sanctions was regarded as having no place in mature business relationships. According to one general manager, “sanctions are an abuse of power, and not the way to resolve a problem where one obviously exists”. Likewise, other respondents felt that sanctions were counter-productive and served to create “even bigger gulfs between international partners,” and that their role and purpose was “always to make you look weak and them look strong”.

Conflict resolution As has been identified, the use of sanctions was regarded as an extreme and often ineffective means of resolving decision making conflict. However, respondents maintained that in the majority of cases, both sides generally supported the shift towards more collaborative methods of decision making, the workings of which were explained by an export director: We have not given up our executive powers, or changed the rules on who can decide what. The place of decisions has not changed. But what we have done is bring managers, particularly from the UK, in to make the decisions with us. Bringing them to head office, they soon see the complexity, the implications of decision making and that makes them less obsessed about their own market. Involvement helps them and us. We still make the final decisions, but they are clearer on how we got there.

Some of the other companies also described how they had sought to include the management of their British subsidiary when making strategic decisions affecting their territory. Indeed all of the companies claimed to involve managers from their principal markets in the process of guiding the direction of product design for future seasons, product allocation, and the development of global advertising and promotional plans. Interestingly, for most of the case companies, this form of local management involvement was a recent development (within the past five years or so). These changes often were motivated by the need to respond to increased market competition and were a response to low levels of morale among local management who previously felt, according to one British buying director, “disenfranchised and powerless”. This form of behaviour modification, achieved via the processes of management socialisation, is recognised in the parent – subsidiary literature (see Rodrigues, 1995). While for the case companies it did not necessarily signal the relaxation of centralised control, it did indicate a progression towards a normative form of integration, as opposed to a reliance upon impersonal rules in order to secure local management compliance. The movement towards more collaborative decision making was evident within most of the case companies, either in respect of specific projects, or as an on-going approach to management decision making. The majority of British managers, particularly from the subsidiary companies, while welcoming these initiatives, maintained that collaborative decision making would extend only to non-contentious areas and that strategic decision making would never be shared. Furthermore, this group recognised these initiatives to be a “softly-softly” form of subsidiary governance. This is reflected in the following observation made by the managing director of a subsidiary company: While it may seem like collaboration, it is just really indoctrination. We are brain-washed by them – when they are being nice to you. I suppose it is about them getting us on their side. It is a sort of manipulation but with a smile on its face.

Discussion The findings of the research raise many issues with respect to the nature of power, conflict and conflict resolution within international fashion retail channels. The following section will consider three key dimensions that are of particular importance. The nature of conflict in international fashion retail channels Lusch (1982) identified three underlying sources of conflict within channel relationships: perceptual incongruity, goal incompatibility and domain dissensus. The findings of this study recognise similar issues, particularly in relation to disputes concerning decision making domains and perceptual disagreements. The research findings clearly indicate that the tensions and conflicts that emerge in there international relationships are precipitated by the drive to achieve and enforce local compliance to a global strategy by the internationalising retailers and a desire for decision making autonomy by management based in the UK. This study, with its particular focus upon the actions and behaviours of British management, provides a context for understanding the tensions that arise from

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Figure 1. The nature and context of conflict in international fashion retail relationships involving British management

cultural disconnection. As has been previously identified, decisions relevant to the choice of foreign market governance mechanisms ought to recognise and accommodate the prevailing national culture characteristics, specifically in terms of attitudes and preferences with respect to power distance; individualism; uncertainty avoidance and masculine traits in business practise. Drawing from these characteristics, the British managers of the case companies preferred small-power distance in decision making; expected “primary control” over their work environments, exhibited weak levels of uncertainty avoidance which prompted a desire for autonomy and could be categorised as “masculine” in their attitudes to work, as manifest by their tendency to be assertive, competitive and ambitious. While capable of recognising these cultural dimensions, the internationalising retailers initially adopted governance mechanisms characterised by highly centralised and hierarchical forms of decision making, and/or were highly formalised in their approach, as evidence through their reliance upon bureaucratic mechanisms which favoured formal systems, established rules and prescribed procedures. As such, the study not only serves to highlight the nature and characteristics of the conflicts that may emerge between and among the parties involved, but also provides a context for explaining these tensions in terms of the management culture dimensions of the operating market and the management approaches adopted by the internationalising retailer. Figure 1 illustrates the precipitating factors which lead to relationship conflict (management culture traits and foreign market governance methods) and the conflict incidents (i.e. those specific areas of management tension).

“Constructive” conflict in international fashion channels The literature that deals with power, conflict and control in marketing channels fails to fully recognise that the outcomes of conflict between members may actually prove to be beneficial and constructive. The results of this study highlight instances whereby conflict incidents precipitated positive and beneficial policy changes with respect to pricing, product development and marketing communications. The companies that were most likely to benefit were those that relaxed their centralised control and rigid procedure-laden approaches in favour of more informal controls. Recognising the benefits that had arisen from conflict situations, these central managers recognised the advantages of engaging local management in decision making. The shift towards the use of non-coercive forms of power also relates to the third important dimension to emerge from the study. Coercive and non-coercive power Hunt and Nevin (1974) maintained that coercive and non-coercive power were the pre-eminent sources of control within channel relationships. Within the context of international retail franchising, Quinn and Doherty (2000) found that attempts to adopt non-coercive methods of control may be undermined by limited internal resources. While many of the companies included in this study had exercised coercive power in their relationships with other channel members (principally as a means of punishing strategy non-compliance and errant management behaviour), they also recognised that its use was detrimental to healthy channel relationships. Instead, there was a shift towards non-coercive methods of control, notably through the development of more collaborative forms of decision making. By encouraging local management participation in strategic decision making, these retailers believed that they had found an acceptable compromise which permitted local market involvement, while not suspending their overall controls. These case companies had moved to relax their high centralised and formal management controls in favour of what Ghoshal and Nohria (1993) identified as “normative integration”, achieved through management socialisation. This form of management involvement, while perceived as suspect by some of the British management, did appear to provide for improvements in cross-management understanding and reduced the incidents of dysfunction and non-performance. Conclusions and recommendations for further research This paper has examined some of the issues surround the nature of power, conflict and conflict resolution within international fashion retail operations. Drawing from multiple case studies of ten international fashion retailers, the study identified the tensions that arise between channel members. Reflecting upon the tendency of foreign entrants to adopt a highly centralised approach to the management of British operations, this stance typically failed to take due account of a British management culture that demands, if not management autonomy, at least some involvement in decision making practise. This study also recognised that conflict in marketing channels may be constructive and evidence was provided which indicated that conflict may encourage alternative thinking within companies and may prove to be an impetus for creativity. Again, the issue of constructive conflict is one that could be developed in subsequent studies. Finally, as well as considering the issues associated with the devolvement of management decision making to local levels, this paper also considered the use of

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Manchester Business School, University of Manchester, Manchester, UK

Andrew J. Newman and Darshika Patel

Received April 2002 Revised May 2003 and August 2003

Keywords Fashion industry, Market orientation, Marketing strategy, Brand image, Consumer behaviour, Factor analysis Abstract Topshop and Gap are important fashion retail brands targeting young style-conscious UK consumers. However, business performance differs widely with Topshop enjoying record sales whilst Gap has recorded losses at a five year high. This paper investigated these variations in performance from a strategic and holistic view of retailer brand image, and the adoption of quality marketing orientation. Answers were sought using key image attributes as a vehicle to understanding customers’ perceptions of the retailers under study. Survey data were collected from a sample of 300 typical customers who were set the task of ranking image attributes. Factor analysis of customer responses indicated that Gap customers were offered lifestyles in advertising that were out-of-step with the merchandise on the shelves. This reflected a failure on the part of retail management to satisfy the target market. Topshop customers displayed high levels of confidence in the merchandise proposition but stressed the importance of atmosphere and sales staff in overall assessments. This finding reinforces the view that sustainable retailer positioning pivots on a range of marketing activities as well as matching fashion consumers to styles. The research concludes with implications for strategic retail marketing, theory and practice.

Introduction Fashion retailing is a highly competitive and profitable part of the UK retail sector. For retailers of diffusion lines, or the styles that trickle down from catwalk to mass market, the pressure to stock the latest fashion is considerable. Consumer behaviour in this dynamic marketplace is characterized by impulse purchasing and fickle customers. To achieve and maintain competitive advantage, retailers must, therefore, pursue a retail strategy that aligns closely with customer merchandise preferences. Fashion multiples that succeed are rewarded with continued customer loyalty and profitability. This paper focuses on the two major fashion multiples Gap and Topshop, in an attempt to identify the key factors that influence the market performance of these brands. US owned fashion retailer Gap is a speciality chain that has been very successful at developing its products and merchandising strategies (Thomas et al., 2000). Founded in 1969 in San Francisco, it operates 4,171 stores worldwide, including the UK. Gap’s target market is the fifteen to thirty-five age groups with an average age of twenty-three. The fashion retailer’s success has been founded on the young dot-com generation and their acceptance of the plain white T-shirts and chinos look, as an expression of identity. In 2001, Gap repositioned itself by targeting the more fashionable contemporaries, and in doing arguably neglected its core customers through limiting the proven merchandise from the shelves of its UK stores. A recent European Journal of Marketing Vol. 38 No. 7, 2004 pp. 770-789 q Emerald Group Publishing Limited 0309-0566 DOI 10.1108/03090560410539249

The authors would like to thank the Guest Editor Anne Marie Doherty and the anonymous reviewers whose highly constructive and supportive comments helped in restructuring this article.

re-imaging campaign that targeted fashion conscious consumers has alienated existing customers (Patten et al., 2002). This action contributed to a £24 million loss and the deflection of trade to rivals, such as H&M and Zara (Whitehead, 2002). In contrast, key competitor and archrival Topshop, which stems from modest beginnings, has experienced strong trading and a 9.3 per cent growth in sales (Patten et al., 2002; Fitzpatrick, 2002). The British retailer was founded as a small concession inside a Peter Robinson store in 1964, obtaining independent status in 1974. Currently owned by the Arcadia Group, Topshop’s target market is the fifteen to twenty-five age group and average age of twenty. Fashion editors acknowledge its increasingly sophisticated merchandise range made possible by the short catwalk-to-high street lead-times. Pricing is reasonable and the positioning of store environments and music makes the chain a success with its core market of young fashion conscious consumers. Literature review The marketing and apparel literature generally agrees on the subject of fashion leadership in that fashion leaders are more likely to be young consumers (Goldsmith et al., 1991; Gutman and Mills, 1982; Horridge and Richards, 1984; Mason and Bellenger, 1974; Scrugge, 1977). When compared with other consumer groups, young fashion leaders are those consumers that consider fashion to be of great importance to their lifestyles. Fashion leaders have well defined convictions about taste, in particularly their own, and are champions of new styles and generally influence other consumers to adopt and buy the latest fashions (see Beaudoin et al., 1998; Kaiser, 1990; Polegato and Wall, 1980; Schrank and Guilmore, 1973). Topshop and Gap target these fashion conscious consumer groups and this is reflected in their retail strategy. However, as previously mentioned, Gap have been less successful than Topshop, taking sales performance as an indicator. When attempting to ascertain the reason for poor levels of performance, it is reasonable to assume that this may be due to ineffective positioning (Davies and Brooks, 1989), and a failure of the retailer’s positioning strategy. This is an integrated management activity that takes in elements of the retail mix such as merchandising, store formats, sales staff interaction, promotional efforts (Walters and Laffy, 1996) and (unsurprisingly) reputation. These factors create a point of differentiation, separate retailers from the competition, and create the retail brand. Intensifying retail competition and growing market saturation are continually forcing fashion retailers to devise more creative positioning and differentiation tools (Amirani and Gates, 1993). Such pressures in this sector tend to give rise to improvements to fashion ranges, the re-evaluation of selections and, where necessary, realignments to brand image. The success of the brand (by reputation), and its adoption by consumers, is critical in this intensely competitive sector, and differing types of fashion consumers must be matched with clothing styles (Cholachatpinyo et al., 2002). Retail management strategies ensure that the most stylish merchandise is available in the stores at the right time, and thus maintains brand image in the minds of the customer (Newman and Cullen, 2002). This fluctuating strategic process inevitably influences the degree to which the retail business succeeds in the marketplace (Walters and Laffy, 1996). Operationally, this equates to management’s marketing capability and the ability of top executives to embed customer-oriented values, or quality market orientation (Liu and Davies, 1996).

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Academic research has identified links between the market orientation concept and market performance, and the potential barriers to developing marketing orientation (see Harris, 2000; Hurley and Hult, 1998; Eppes, 1997; Liu and Davies, 1996). For example, recent (circa 2000-2001) poor results from large retailers such as Marks and Spencer suggest a correlation between performance and market orientation. Moreover, this demonstrates that even major retailers lack the ability to maintain customer focus. As market orientation is a function of management’s marketing capability, it requires marketing skills to identify customer needs, the targeting of particular groups and the development of marketing mix packages for these groups. Hence, sales performance, and the retailer’s ability to satisfy customers, is a good (but not necessarily complete) indicator of the effectiveness of the retail strategy. Retail management may therefore pursue a market-oriented policy (see Piercy and Alexander, 1988), to create a competitive advantage and point of differentiation, but may lack the expertise and market awareness. For example, Thomas et al. (2000) cite Gap as a retailer that has been particularly successful at developing strategies targeted toward the younger consumer. However, the group sales have recently fallen dramatically and its fall from grace has been likened to that of Marks & Spencer. The alienation of the core customer base, and a failure to establish credibility with the fashion followers (Whitehead, 2002) would seem to suggest that Gap’s attempt at market orientation has been far less successful that that of Topshop. For instance, Armstrong (2002) points to the responsiveness of the Topshop fashion chain to consumer values, and trends that drive consumer preferences. The fast response time from first identifying fashion statements of celebrities (such as David Beckham) to merchandise availability in stores has created considerable competitive advantages for the retailer. In addition, Topshop’s fast catwalk to shop floor lead-times ensure the availability of cutting edge fashions at a high street price, thus satisfying target market expectations and creating a competitive edge. Targeting young fashion conscious consumers necessitates an appreciation of style appeal, and the supporting mix elements. We therefore assert that the quality of market orientation, and hence the group performance, may be considered a measure of the success of a retailer’s merchandising strategy. Based on this presumption, this paper sought to investigate the degree to which Topshop and Gap had succeeded in meeting consumers’ expectations. Here clothing styles and the selections of merchandise are critical to success, in terms of sales performance, and are an indicator of the quality of market orientation achieved. Such factors will also shape how consumers perceive the image of the fashion retailer. For instance, there has been shown to be a positive correlation between retailer image and sales performance (Davies and Brooks, 1989). Retail strategy and retailer image Turley and Chebat (2002) extended an approach that integrates the dimensions of retailer image into the retail strategy process. This suited the needs of this study as it established theoretical links between fashion retail management strategy and the image evoked by a wide range of tangible and intangible factors (see Figure 1). These factors are strategic marketing decisions and an alignment with customers’ perceptions is necessary to ensure quality market orientation. Identifying any gaps, which are particularly difficult to measure in clothing speciality retailing (Gagliano

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Figure 1. Strategic planning process

and Hathcote, 1994), will help to uncover shortfalls in the retail strategy adopted by the two retailers under study. Hence, the assumption can be made that when the strategy is correct for the target market, customers are likely to evaluate the retailer more positively. For example, merchandise and store atmosphere will be aligned to customer expectations, and hence sales are likely to be buoyant. Measuring retailer image components therefore serves to evaluate the success of the retail strategy and the retailer’s bid to satisfy the target market. Components of retail image Retail store image is considered one of the most important determinants of success (Amirani and Gates, 1993), and there have been numerous studies attempting to define store image (see, for example, Martineau, 1958a; Hirschman et al., 1978; Lindquist, 1974; Mazursky and Jacoby, 1986; Greenberg et al., 1983; Oxenfeldt, 1974; Sewell, 1974; Zimmer and Golden, 1988; McGoldrick and Greenland, 1994). These and other scholarly contributions provide us with a multifaceted explanation(s) of image made up of components or attributes, both physical and psychological, all of which depict the fashion store in the mind of the targeted customer. It is these functional qualities and psychological attributes embedded in the shopper’s mind, which helps differentiation and maintains competitive advantage for the fashion retailer. It is critically important therefore, to understand how store image shapes customer choice criteria. On first examination the task of defining store image would seem to be a difficult one. For example, consumers’ perceptions of fashion stores (retailers) are quickly and unthinkingly formed (Sewell, 1974; Oxenfeldt, 1974), and time-dependent (Martineau, 1958a; Osman, 1993). It is also clear that store image can be context specific (Davies, 1992) as it is dependent on the purchase situation, and may change with customer experiences (Osman, 1993; Birtwistle et al., 1998). The physical environment (e.g. store atmosphere and layout) is also responsible for influencing customer behaviour (see Baker, 1987; Booms and Bitner, 1981; Kotler, 1974; Shostack, 1977; Upah and Fulton, 1985; Zeithaml et al., 1985; Bitner, 1990; Bitner, 1992 and Baker et al., 1994). In addition, store image attributes can vary across the retail sector (Fisk, 1961; Lindquist, 1974; Oxenfeldt, 1974; Kotler, 1974; Schiffman et al., 1977; Hansen and Deutscher, 1977; Birtwistle and Shearer, 2001). Adding to the level of complexity, previous research suggests that consumers tend to mentally abstract image attribute information

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(Martineau, 1958b; Boulding, 1956; Newman, 2003), such as styles, trends, ranges, and the reputation the retailer has for stocking certain fashion items. In the context of this research, it is possible to assign attributes that relate to fashion stores in general, and are highly indicative of retail management strategy. For example, prior work (Birtwistle and Shearer, 2001) suggests that customers will be aware of the types or style of clothing regularly stocked in the store. Hence, for young fashion seeking consumers, merchandise, or the styles on offer, are critical determinants of store patronage. Indeed, Greenberg et al. (1983) stresses that range of merchandise, promotions and the atmosphere of the stores are the most important factors influencing consumer choice. Later work by Berman and Evans (1992) confirms this view and adds further dimensions of service and price. In this research, fashion styles may be considered to overshadow other attributes due to the criticality of this factor for the target market. Hence, a store chain may be considered to be in, or, out-of-step with the latest fashion statements. A visit to the store may confirm or disconfirm this view, and in this sense conforms to Davies’s (1992) assertion that store image is likely to be situation specific. Crucially, however, merchandise selection, and by this we mean the fashion styles on sale in a particular store chain, evokes an image that consumers use to judge the coolest retailer brand. Branding in the fashion sector is highly important, and by managing brand loyalty a retailer may achieve substantial increases in sales (Reichel, 1994). Hence, brand loyalty is a significant indicator of success (Ehrenberg et al., 1990), and particularly for fashion retailers (Birtwistle et al., 1998). Young fashion consumers seek out both functional and symbolic benefits that are essential to their experiences (Leung et al., 2000). These attributes are encapsulated within branding statements, and the visual messages that convey them. Images of this nature are invariably linked to fashion styles and trends or, in more precise terms, the types of merchandise that retailers are known to carry. Branding messages are reinforced through the promotional activities and advertising in particular. Such messages embed the quality and reputation of the retailer (Donnellan, 1996), which tend to be intertwined concepts in the fashion retail sector. Retailer brands and reputations that are built up over time evoke sales, as consumers tend to be brand loyal, and brand driven (Donnellan, 1996). On occasions, however, retail managements’ perceptions of brand identity can be out of step with customers’ expectations (Birtwistle et al., 1999). When these gaps exist, retailers may feel compelled strategically in one direction when realignment may be necessary. An essential and implicit part of the brand is the service element, which includes (sales) staff-customer interaction. Value can thus be added to the merchandise through services. Berman and Evans (1992) attest to the importance of “store service” and “sales service”, which they conceptually link to returns, exchanges and courteous, knowledgeable, helpful sales staff, respectively. As image components these attributes are likely to be internalized and abstracted as part of the overall assessment of the retailer. Strategically, and over time, the service element can strengthen the retailer’s market position (Birtwistle et al., 1998), and improve differentiation (Turnbull and Wilson, 1989). Quality service contact makes for closer customer/retailer relationships (Berry and Parasuraman, 1991), which engenders positive word-of-mouth, greater sales and customer loyalty retention (Beatty et al., 1996).

Customers’ perceptions of merchandise quality are often affected by the brand name it is associated with (Forsythe, 1991; Mazursky and Jacoby, 1986; Nevid, 1981; Wheatley and Chiu, 1977). In general, however, quality is very difficult to define (Roger and Lutz, 1990). For example, Brown and Rice (1998) assert that a high price garment is likely to represent high quality to the customer and vice versa. Accepting this view suggests that price is related to quality and may be used to compare garments. However, this stance does not take into consideration where the item was purchased, and retailer image. For example, branding and brand loyalty has a great impact on fashion followers shopping in high street locations from retailers such as Topshop and Gap. When retailer brand image and market positioning are factored in, which incorporates customers’ views concerning the clothing styles that particular retailers are known to sell, quality may be defined in a much broader manner. Hence, comparing pricing strategies across the sector is by no means a definitive method of determining the true market positioning of a particular retailer. The US retailer Gap, for example, is one of the most expensive brands on the high street (Whitehead, 2002), and yet this retailer’s positioning strategy seems to be out of kilter with the customers it targets and fails to meet expectations. The two retailers under investigation, Gap and Topshop, advertise nationally towards young fashion consumers. Promotional campaigns do differ, however. Gap has entered above the line into a programme of intensive primetime television advertising. However, Topshop has adopted a below the line approach with slightly less aggressive techniques. Both brands are strong and well recognized in the high street. Retail location strategies are comparable and the store formats very similar. Topshop and Gap use a mix of boutique style and free-flow formats, which are customary for this type of retailer. Internal features and fittings, which help create store atmosphere, are therefore typical of those found in stores that focus on the younger fashion buyer. These layouts are an essential part of the retailer image as they can change shopping behaviour and customers overall evaluation of the retail brand. For example, we know that slight changes in the store environment can affect consumers’ perceptions and alter behaviour (Turley and Milliman, 2000). More specifically, store entrances, checkouts and customer service area queuing can create a reluctance to remain in the store (Newman et al., 2002a). Even in-store alterations that have not been noticed by the customer are capable of causing shoppers to adjust their in-store actions (Turley and Chebat, 2002; Milliman, 1982; Gulas and Schewe, 1994; Andrus, 1986). In general, therefore, scholars tend to agree that the physical and social environment (service) is an essential and vital part of the retail image (Kotler, 1974), and imbue feelings or emotions in people (Holahan, 1982; Bitner, 1992; Mattila and Wirtz, 2001). Store atmospheres are thus inextricably linked to store internal layouts, service elements and the image customers have of the retailer (Newman, 2003). Store atmosphere is important in the fashion sector (Greenberg et al., 1983; Gagliano and Hathcote, 1994; Birtwistle and Shearer, 2001). Internal and external layouts help create the store atmosphere that is crucial for success and a key determinant of patronage. The use of cues such as popular music and upbeat de´cor align the store to the target market. These features include the availability of changing rooms, fast checkout facilities, and the layouts that facilitate ease of shopping. Thus, by strategically manipulating in-store environments, retailers can differentiate their stores from similar competitive offerings. As this paper seeks to establish a wider strategic

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view of the retailers under study, the aforementioned broad dimensions seem to fit the needs of this research. The following components were therefore chosen to measure customers’ perceptions of Topshop and Gap: atmosphere and layout, merchandise, reputation, sales staff, quality, price, advertising and store location.

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Research design and methodology As stated, for this work it was important to measure the components that stemmed from the retail image literature, and linked the results conceptually to the strategic directions of the two retailers. An orderly and systematic approach (Jankowicz, 1991) was thus essential, as a qualitative approach would not have provided the sample size or conclusive measurement of attributes (Malhotra, 1999). Survey research was ideal for this type of research, which commonly utilizes pre-defined scales for the measurement of retailer image measurement (Birtwistle et al., 1999). This design also provided the descriptive evidence and the empirical testing of theoretical dimensions. Prior research in this field provided a suitable survey instrument. The semantic differential can be used to rate a store against another store depending on the attributes it possesses, and has been used widely (see, for example, Kelley and Stephenson, 1967; Berry, 1969; Marcus, 1972; Marks, 1976; Hirschman et al., 1978; Hansen and Deutscher, 1977). The instrument developed for this study was a seven-page self-administered questionnaire. This contained three sections: store perceptions, store attributes and demographics. These were ranked by respondents using a five point scaling, which are the most common for studies of this kind (e.g. McDougall and Fry, 1974; Golden et al., 1987; Cassill et al., 1993). Variables were drawn and adapted from prior academic work, in particular Hansen and Deutscher (1977) and Birtwistle and Shearer (2001). The latter study is well recognized and focused specifically on fashion retailing. Advanced statistical analysis is used post data collection to evaluate internal consistency, construct validity and the quality of the instrument. To improve reliability, the questionnaire was pilot tested with a small group of potential shoppers. Changes were subsequently made to section 1, which contained 51 statements. For example, respondents were asked to rank the following: “Topshop/Gap clothes are stylish” and “Topshop/Gap clothes are good value”, using a five-point scale (i.e. 1 ¼ strongly disagree, 2 ¼ disagree, 3 ¼ neither agree nor disagree, 4 ¼ agree and 5 ¼ strongly agree). Section 2 of the instrument contained the nine attributes of store image, with the basic demographic questions (i.e. age, gender and occupation) in section 3. The survey was undertaken in the main shopping areas of Manchester and Birmingham during 2001 and early 2002. Both cities have large populations and act as key trading centres containing multiple chains and independent retailers. According to Hall (2002), Manchester is representative of the rest of the country in terms of the mix of customer. Prior discussions with Topshop and Gap revealed that the customer base broadly consisted of 70 per cent female and 30 per cent male. This took into account the fact that Gap traded from both female and male dedicated outlets. A cluster sample was obtained (n ¼ 300) representative of customers from the target market of the two fashion retailers, Gap and Topshop. The sampling frame reflected the types of customers that shopped most frequently in the stores, and consisted of mainly professionals and students. The latter group in particular stem from wide-ranging socio-economic backgrounds.

In all, the questionnaire was administered to 150 respondents for each retailer. Respondents were customers from each store who were approached by the authors and politely requested to complete the questionnaire. It is acknowledged that such an approach in terms of delivery and collection could have potentially introduced some form of bias into the study. In addition, the researchers had no control over the occupation profiles of those responding. The high proportion of student respondents (see Table I) in the sample reflected the nature of the customer base within the trading areas of the retailers under study. The collected data were subsequently input to SPSS version 11.5 for data analysis.

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Analysis and interpretation As the study used a variety of attributes a system of data reduction was required such as principal component analysis (PCA) followed by factor analysis. In effect, these two techniques were chosen because these simplify data and reduce large sets of variables to smaller yet significant factors. This approach is exemplified in other similar studies such as Foxall and Hackett (1994). In our work the objective was to reduce and summarize data with minimum loss of information, and identify a relatively small number of factors that represented relationships among interrelated variables (Norusis, 1994). In this case, the key factors derived from customers’ evaluations of the two fashion retailers Topshop and Gap. The questionnaires were entered for statistical analysis, and the number of variables consisted of 51 for a sample of 300 cases. The internal consistency and quality of the instrument was measured by calculating the coefficient alpha. According Fashion retailers Variables Age (years) , 10 10-14 15-19 20-24 25-29 30-34 35-39 40-44 45-49 Total Gender Male Female Total Occupation Student Professional Homemaker Unemployed Technical Other Total

Total

Topshop

Gap

1 5 56 156 65 9 3 2 3 300

1 2 24 85 32 3 1 0 2 150

0 3 32 71 33 6 2 2 1 150

89 211 300

38 112 150

51 99 150

160 101 8 15 5 11 300

85 48 2 9 0 6 150

75 53 6 6 5 5 150

Table I. Demographic characteristics of the sample

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to Nunally (1978), a Cronbach alpha in the range of 0.5-0.6 or higher indicates an acceptable level of construct validity. Table II shows the alpha values, which were believed to be at an acceptable level suggesting that the factors in our study were very reliable. The same table illustrates the loading values and confirms that the level of significance criteria for the factor loadings were met for all the variables in the equation. In this study, we considered all factors that achieved eigenvalues greater than one as significant; conversely we did not include factors with eigenvalues of less than one. For Gap, PCA revealed the presence of ten components with eigenvalues exceeding 1, and explaining a total of 77 per cent of the variance. PCA for Topshop revealed the presence of 11 components with eigenvalues exceeding 1, explaining a total of 79 per cent of the variance. In the analysis we have placed great emphasis upon the interpretability of factors, which effectively determine their usefulness. Since one of our goals in using factor analysis was to obtain factors that explain the correlation among the 51 variables, the variables must relate to each other for the factor model to be appropriate. When the correlation between variables is small it is unlikely that they share common factors (Norusis, 1994). Varimax rotation suited our research goals and the need to reduce a large number of variables to a small set of uncorrelated variables (Hair et al., 1995). The many questions or variables in our survey were thus reduced to a small number of key factors that our respondents thought significant during their evaluations. This approach attempts to minimize the number of variables that have high loadings on a factor, and highlights those most significant. A factor loading value of 0.50 and above is considered good and very significant, whereas 0.45 is fair and 0.32 and below is poor (Child, 1970; Norusis, 1988). Based on Hackett and Foxall (1994) we considered a factor loading of+or - 0.30 to be significant, and a factor loading of + or 2 0.50 as very significant. The larger the factor loading, the more significant it was at interpreting the factor matrix, and the more significant in our respondents’ evaluations. As mentioned, the factor analytic method was largely determined by the chosen approach, which involved the measurement of retailer image components. Hence, the findings are clustered round the factor solution for each fashion retailer. For Gap, an inspection of the scree plot revealed a clear break after the third point. This suggested that three factors should be retained and used as descriptors of the variance of the data. Varimax rotation was used to reduce the dimensionality of the perception dimension. The three-factor solution (see Table II) explained a total of 56 per cent of the variance, and the variance for the three components is as follows: factor 1 (27 per cent), factor 2 (23 per cent) and factor 3 (7 per cent). The number and composition of factors for each retailer were similar and the covariance only varied by 5 per cent. With Topshop the scree plot also revealed a clear break after the third point. This suggested that three factors should be retained and used as descriptors of the variance of the data. Varimax rotation was used to reduce the dimensionality of the perception dimension. The three-factor solution (see Table II) explained a total of 56 per cent of the variance, and the variance for the three components is as follows: factor 1 (21 per cent), factor 2 (18 per cent) and factor 3 (17 per cent). To facilitate discussion we now draw on the ranked results of factor analysis, thus placing greater emphasis on the interpretability of components and factors (see Tables II and III).

Factor name (percentage of total variance for each factor) Gap Staff (4.4764)

Merchandise (4.3555)

Atmosphere (4.3366)

Topshop Layout (4.2552)

Variables loading on factor The staff are very helpful The staff are knowledgeable about the clothes The staff are welcoming There is an adequate number of staff The staff are friendly It is easy to open an account Gap staff are intimidating There is a good selection of clothes Gap is always well stocked It is easy to return purchases It is easy to exchange purchases Gap clothes are fashionable Gap clothes are stylish Gap refund procedure is fair I enjoy shopping at Gap The changing rooms are clean Gap smells nice The store is clean Gap has attractive de´cor (inside) Gap has attractive de´cor (outside) The music played in Gap is good

The clothes are laid out in an easy to find manner There are many changing rooms The changing rooms are easy to find There is adequate seating for companions It is easy to move around the store It is easy to find the clothes you want Topshop has a fast checkout

Mean response

Variable loadings

Cronbach alpha

3.3443

0.6821

0.8593

3.1788 3.3178

0.7272 0.6670

3.4503 3.4370 3.3046 2.5496

0.5070 0.6597 0.5205 0.7127

3.2582 3.5629

0.7404 0.6916

3.6225

0.5499

3.6423 3.6556 3.5733 3.5033

0.5662 0.5499 0.6997 0.5574

3.4701

0.6717

3.6556 3.3576 3.6026

0.6924 0.5808 0.6868

3.5231

0.5043

3.4900

0.5766

3.4105

0.6236

3.7666

0.6445

3.7933

0.6277

3.8533

0.5103

3.0133

0.5113

3.7666

0.6641

3.6333 3.16

0.6961 0.6008

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0.8814

0.9046

0.8692

(continued)

Table II. Questionnaire variables, factor loadings and Cronbach alpha scores

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Factor name (percentage of total variance for each factor) Staff (3.7788)

780

Atmosphere (3.5022)

Table II.

Variables loading on factor The staff are very helpful The staff are knowledgeable about the clothes The staff are welcoming The staff are friendly Topshop staff are intimidating I enjoy shopping at Topshop The changing rooms are clean Topshop smells nice The store is clean Topshop has attractive de´cor (inside) Topshop has attractive de´cor (outside)

Mean response

Variable loadings

Cronbach alpha

3.3066

0.7875

0.8573

3.1266 3.4533 3.6333

0.8233 0.8561 0.6832

2.8666

0.6285

3.6533

0.6027

3.8066 3.4266 3.66

0.6224 0.5082 0.5958

3.7866

0.6036

3.6466

0.5692

Gap

Table III. Ranked variance of components for Topshop and Gap

0.8638

Topshop

Ranking

Component

Variance

Component

Variance

1 2 3 4 5 6 7 8 9

Staff Merchandise Atmosphere Layout Reputation Quality Location Advertising Price

4.4764 4.3555 4.3366 4.0099 3.8113 2.9617 2.5235 2.4432 1.9712

Layout Staff Atmosphere Reputation Location Merchandise Advertising Quality Price

4.255270 3.778866 3.502272 3.141184 2.762593 2.340011 1.923198 1.224349 1.132700

It would seem that both groups of customers structure their perceptions or images of these retail stores along broadly similar dimensions. For instance, the importance of sales staff and store atmosphere were common to both Gap and Topshop customers as the components with the largest variances. Indeed, this result does tend to reflect the core brand values and customer expectations of the respective target markets. However, there were some surprising results that suggest a departure from prior work in this field. In particular, price which was ranked the least important factor for both groups (see Table III). Past research focusing on Scottish markets (Birtwistle and Shearer, 2001; Dawson, 1995), for example, has demonstrated that price, reflecting value for money, was the most important attribute for fashion consumers. Our research in a different geographic location and with specific retail brands hints at the complex nature of this marketplace. The results demonstrate that even low-income consumers such as students are not necessarily influenced by price (i.e. value and affordability),

when fashion and style are factored in. However, it is reasonable to assume that even students from higher socioeconomic backgrounds are likely to be price conscious, and thus a distinction may be drawn. Certain attributes that intuitively warrant an implicit role in defining the retail image for customers did not rank as highly as expected. For example, quality, and reputation to a lesser degree, assumed a relatively low priority with both groups suggesting that Topshop and Gap customer expectations in this regard are very similar. This is not so surprising as consumers do tend to expect reasonable quality and good variety in this sector (Fernie, 1997), as an implicit part of the retail brand. Results also indicated that Topshop and Gap brand images shape customer expectations especially with regard to the type of merchandise on offer. At this point in the analysis we turn to the three-factor model for Topshop and Gap, illustrated in Table III. Merchandise is absent from the three-factor solution for Topshop, demonstrating that this customer group considered merchandise to be of low priority when shopping. As merchandise comprised items such as fashionable and stylish ranges, selections and refunds, the low priority that customers assign to merchandise attests to their satisfaction with the overall merchandise proposition at Topshop stores. The three-factor model for Gap shows that customers considered sales staff (factor 1) to be the most important factor when shopping. Merchandise, which was ranked the second most important factor, demonstrates the degree of concern customers may have over the merchandise proposition at Gap stores. Loadings on the Gap statements that measured merchandise, e.g. “clothing style”, “fashion” and “selection”, all show significant amounts of variance. Hence, Gap customers perceive merchandise (factor 2) to be a critically important factor. When placed in context, and considered jointly with factor 1 (sales staff), an image of the customer experience emerges. For example, when shopping, customers frequently seek out positive emotional feedback about products from sales staff (Dube and Menon, 2000). In Gap stores this extends to reassurance over clothing purchases. It is notable that the variables measuring refund and exchange procedures are clustered with the merchandise component (factor 2). Birtwistle and Shearer (2001) found that having a good selection and a well-administered refund procedure were high priority for most fashion customers, as fashion purchases were perceived to be high risk. Topshop customers also ranked highly the importance of sales staff (factor 2) but placed greater emphasis on the layout of stores (factor 1). For Topshop customers, however, the absence of merchandise in the factor model points to the generic value customers place on store layouts and sales staff competencies. Latterly, the loadings on attributes such as changing rooms and easy to find merchandise are testimony to the significance of these issues for customers. For instance, Newman (2003) reported that the ease with which customers could work out in their minds the layout of a retail store (or its legibility) influenced the image and reputation they assigned the retailer. Hence, when store interiors are laid out unambiguously (i.e. distinctive aisles, shelving, changing rooms and checkouts), shoppers are more likely to feel comfortable and (most importantly) able to spend more money. Evidence to support the perceived importance of sales staff and their levels of expertise is not unusual and is consistent with prior work (Gagliano and Hathcote, 1994; Birtwistle and Shearer, 2001). This is particularly important when consumer time is limited; if compounded by an apparent lack of fashion styles (merchandise) the

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situation worsens. For example, when customers are obliged to shop during the lunch hour, helpful and knowledgeable sales staff can significantly influence the sales encounter, and thus customer perceptions of the retail image. Moreover, this type of consumer situation can reveal potential gaps in management strategy, vis-a`-vis disparity between customer (service) expectations and their perceptions based on promotional promises. Expectations tend to be exceptionally high amongst the young fashion consumers who make up this target market. Both Topshop and Gap customers believed that the atmosphere (factor 3 for Topshop and Gap) inside stores is a key factor influencing their decision making. This is consistent with prior work (Greenberg et al., 1983; Birtwistle and Shearer, 2001), and confirmation of the criticality of the retail (physical and social) environment and its resulting influence on customer evaluations (see, for example, Kotler, 1974; Shostack, 1977; Booms and Bitner, 1982; Upah and Fulton, 1985; Zeithaml et al., 1985; Baker, 1987; Bitner, 1990; Turley and Chebat, 2002; Newman, 2003). Gap customers will additionally seek confirmation from their surroundings as a means of compensating for the poor merchandise proposition. For example, the presence of the music statement in the Gap three-factor solution suggests the presence of ambiguity as customers are presented with upbeat music in conjunction with perhaps disappointing fashions. As with sales staff, the absence of merchandise in the Topshop three-factor model points to the relevance of store atmosphere as a determinant of patronage in general. Interestingly, the level of importance that both groups placed on the staff and atmosphere factors (see Table II) confirms the inextricable links between the social and physical environment. Conclusions and implications for retail strategy Topshop and Gap brands attract similar target markets; hence a degree of similarity was evident in the ranked importance of components (see Table III). Both retailers are well known and publicized widely as strong fashion brands. Indeed, customers’ evaluations of advertising, quality and price were alike for both store chains. Nevertheless, this study has identified a marked difference in the emphasis Topshop and Gap customers place on the attributes that measure the merchandise proposition in the two chains. Gap customers believe merchandise to be one of the key concerns when shopping in the retailer’s stores. We must, however, acknowledge that media hype (and word-of-mouth) is likely to have influenced our respondents’ perceptions of the two fashion retailers. For example, media sources have widely reported the fact that fashion styles on offer in Gap stores are out of alignment with customer expectations (Whitehead, 2002). In addition, the international press has criticized the chain, leading to the boycotting of stores protesting against the exploitation of clothing workers in developing countries. In the UK, however, the market position is jeopardized primarily because many customers believe the brand to be too expensive, and not particularly fashionable. Young fashion conscious consumers are drawn more towards fashionable and “trendy” labels (Whitehead, 2002). Gap customers in our study do seem to be confused with the retailer’s overall image. This uncertainty extends beyond the merchandise to the atmosphere created by a mix of factors such as the actions of sales staff, de´cor and the music played in-store. Hence, the image, or total retail proposition presented to the customer, conflicts with the

promise encapsulated within the communications message. In essence, Gap customers are promised lifestyles that are out of step with the merchandise on the shelves. Customer dissatisfaction places greater pressure on contact staff as they attempt to make up for style ranges that are below market expectations. From a management perspective, this suggests a failure to identify the needs of the target market. In contrast, Topshop is known in the fashion sector as the “darling of the high street”, and received the ”High Street Retailer” award for two consecutive years. Because of this success, the Topshop brand has enjoyed considerably more success with the young impressionable and fashion conscious teen market (Newman et al., 2002b), and Topshop has used this edge to attract a greater market share and maintain competitive advantage. Indeed, our research has demonstrated that Topshop customers are content with the styles and fashion lines, or merchandise proposition, found in the retailer’s stores. However, customers are nevertheless conscious of factors such as sales staff and layouts, suggesting that, although the merchandise proposition was in tune with customer expectations, other image-related factors were worthy of some investigation. Hence, this reinforces the view that brand success and its adoption by consumers, pivots on the matching of fashion consumers to styles (Cholachatpinyo et al., 2002) and, by definition, the implementation of a range of marketing activities and the marketing life cycle (Sproles and Burns, 1994). This study has thus uncovered a number of important implications for retail practitioners in the fashion sector. For example, when fashion retailers have strong brands and market positions, the precise demands of customers in some markets are not necessarily translated into adjustments to the retail marketing mix. We may draw historically on the life cycles of the UK and Dutch retail brands Marks & Spencer and C&A to illustrate this point; in the case of the latter, poor sales precipitated a withdrawal from the British marketplace. The needs and preferences of customers and markets may therefore pull the company towards a marketing orientation, but gaps may exist between the adoption of a market orientation and the practice of becoming a market-oriented business. In essence, the quality of marketing orientation is a function of management’s marketing capability (Liu and Davies, 1996, p. 173), and the organizational capabilities in place. For example, there is good evidence to suggest that strategic misalignment may be the result of the internal culture or structure of the retail organization (Harris, 2000), which can restrict the demands of (quality) market orientation. Retailers that adhere myopically to a strategy of merchandise acquisition, to the extent that the buying function becomes more and more disaggregated from the marketing functions, can lose sight of customers’ expectations. In the fashion sector, this can arise due to market pressure as retail competition and growing market saturation intensifies, and retailers must respond with (quick fix) range improvements to ensure brand consistency and strength. However, the strategic goal of truly market-oriented companies must be aggressively focused on the specific demands of individual target markets (Narver and Slater, 1990), as well as product innovation. Achieving this necessitates a top down policy to ensure that marketing capability, such as localized knowledge and consumer research, is used across the company to identify those customer needs. This equates to selling what customers perceive to be fashionable styles, and the adoption of inclusive merchandising strategies (see

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Newman and Cullen, 2002, p. 143) that target a country or even regions within countries to meet and exceed the expectations of customers. Given the volatility of the UK fashion market, and the considerable growth it is expected to sustain in the future, market-oriented retailers will be forced to make systematic changes to the total retail proposition to survive. As well as changes to clothing styles (merchandise), a successful retail strategy necessitates continuous realignments to a range of tangible and intangible factors (see Figure 1) in line with customer expectations. For instance, our study has demonstrated the importance that customers place on fashion store atmosphere and the interaction with sales staff. It is, however, hard to imagine how large retail institutions can achieve the flexibility needed to offer the extent of customization essential to engender incessant customer franchise. For instance, retail image positioning tactics may involve the devolution of management’s stock keeping decisions, and the localized training of sales staff. Although in-store music and de´cor in the young fashion sector appears to be uniformly accepted, costly realignments of interiors to target local preferences can be critical. This becomes even more critical when store layouts and sales staff personas lean towards an image that is relatively standard, and globally aligned to a corporate model. It is useful at this point to reconsider the components that constitute a retailer’s image, and the commercial implications of such factors in the fashion sector. By and large, image is a function of promotional messages and positioning, and matching of the merchandise assortment to the customers the retailer wishes to target. Inside the store, arrays of visual merchandising and layouts reinforce the store’s image for the customer. Store environments must reflect and support brand image and enhance retail offerings. By gathering critical information about target consumers, in-store information (or cues) can be designed to reinforce customers’ expectations. For customers, cues act as symbols indicating what to expect and facilitating judgements (McKenna, 2000). How consumers perceive a store therefore relies fundamentally on the retailer’s manipulation of numerous factors or cues that stimulate feelings and customer expectations. In our study, the in-store sales personnel were components of layout and atmosphere. As we expected, the precise “mix” of attributes, or variables loading on each factor, appears to vary with the retailer and target market. This is consistent with Birtwistle et al. (1999) who also highlighted the potential variability in the mix of attributes customers tend to report. There is likely to be range of image attributes that vary in relative importance. Thus, in order for a retailer to build and maintain a fashion brand image effectively, marketers would have to frequently realign specific themes (e.g. sales staff) within the retail marketing strategy. Our results confirmed that the retail environment should be, for strategic purposes, sub-divided into segments representing different facilities within the store setting. For example, store layouts (i.e. changing room space and checkout configurations), appeared to be important for both Topshop and Gap customers. This paper has established a link between image attributes and retailer performance, and contributes to the sphere of retail strategy. Key image factors such as sales staff and store interiors have been shown to be important even for customers of fashion retailers that possess a strong brand. As front line personnel drive the brand, misleading promotional messages can lead to ambiguous situations

and customer dissatisfaction. A strategic emphasis on merchandise alone is insufficient, and only the integration of a full range of marketing activities, or market oriented approach, in fashion retailing makes possible the “fine tuning” of stores to target market expectations. This compliments prior work in the field of market orientation and retailer image development. However, more research is needed to evaluate the degree to which individual attributes contribute to image, and how these vary within the fashion sector. References Amirani, S. and Gates, R. (1993), “An attribute-anchored conjoint approach measuring store image”, International Journal of Retail & Distribution Management, Vol. 21 No. 5, pp. 30-9. Andrus, D. (1986), “Office atmospherics and dental service satisfactions”, Journal of Professional Services Marketing, Vol. 1 No. 4, p. 77. Armstrong, L. (2002), “Top of the shops; fashion”, The Times, 22 April, p. 11. Baker, J. (1987), “The role of the environment in marketing services: the consumer perspective”, in Czepiel, J.A., Congram, C.A. and Shanahan, J. (Eds), The Services Challenge: Integrating for Competitive Advantage, American Marketing Association, Chicago, IL, pp. 79-87. Baker, J., Grewal, D. and Parasuraman, A. (1994), “The influence of store environment on quality inferences and store image”, Journal of the Academy of Marketing Science, Vol. 22 No. 4, pp. 328-39. Beatty, S.E., Mayer, M., Coleman, J.S., Reynolds, K.E. and Lee, J. (1996), “Customer-sales associate retail relationship”, Journal of Retailing, Vol. 72 No. 3, pp. 223-47. Beaudoin, P., Moore, M.A. and Goldsmith, R.E. (1998), “Young fashion leaders’ and followers’ attitudes toward American and imported apparel”, Journal of Product & Brand Management, Vol. 7 No. 3, pp. 193-207. Berman, B. and Evans, J.R. (1992), Retail Management: A Strategic Approach, 5th ed., Macmillan, New York, NY. Berry, L.L. (1969), “The components of department store image: a theoretical and empirical analysis”, Journal of Retailing, Vol. 45, Spring, pp. 3-20. Berry, L.L. and Parasuraman, A. (1991), Marketing Services: Competing through Quality, The Free Press, New York, NY. Birtwistle, G. and Shearer, L. (2001), “Consumer perception of five UK fashion retailers”, Journal of Fashion Marketing and Management, Vol. 5 No. 1, pp. 9-18. Birtwistle, G., Clarke, I. and Freathy, P. (1998), “Customer decision making in fashion retailing: a segmentation analysis”, International Journal of Retail & Distribution Management, Vol. 26 No. 4, pp. 147-54. Birtwistle, G., Clarke, I. and Freathy, P. (1999), “Store image in the UK fashion sector: consumer versus retailer perceptions”, The International Review of Retail, Distribution and Consumer Research, Vol. 9 No. 1, pp. 1-16. Bitner, M.J. (1990), “Evaluating service encounters: the effect of physical surroundings and employee responses”, Journal of Marketing, Vol. 54, April, pp. 69-82. Bitner, M.J. (1992), “Servicescapes: the impact of physical surroundings on customer and employees”, Journal of Marketing, Vol. 56, April, pp. 57-71. Booms, B.H. and Bitner, M.J. (1981), “Marketing strategies and organization structures for service firms”, in Donnelly, J. and George, W.R. (Eds), Marketing of Services, American Marketing Association, Chicago, IL, pp. 51-67.

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Booms, B.H. and Bitner, M.J. (1982), “Marketing services by managing the environment”, Cornell Hotel and Restaurant Administration Quarterly, Vol. 23 No. 1, pp. 35-9. Boulding, K.E. (1956), The Image: Knowledge in Life and Society, The University of Michigan Press, East Lansing, MI. Brown, P. and Rice, J. (1998), Ready-to-wear Apparel Analysis, 2nd ed., Merrill/Prentice-Hall, Upper Saddle River, NJ. Cassill, N.L., Williamson, N.C., McEnally, M. and Thomas, J. (1993), “Intratype competition among department stores”, The International Review of Retail, Distribution and Consumer Research, Vol. 3 No. 1, pp. 65-78. Child, D. (1970), The Essentials of Factor Analysis, Holt, Rhinehart and Winston, London. Cholachatpinyo, A., Padgett, I., Crocker, M. and Fletcher, B. (2002), “A conceptual model of the fashion process: Part 2: An empirical investigation of the micro-subject level”, Journal of Fashion Marketing and Management, Vol. 6 No. 1, pp. 24-34. Davies, G. (1992), “Positioning, image and the marketing of multiple retailers”, International Review of Retail, Distribution and Consumer Research, Vol. 2 No. 1, pp. 13-34. Davies, G.J. and Brooks, J.M. (1989), Positioning Strategy in Retailing, Paul Chapman, London. Dawson, J. (1995), “Retail trends in Scotland: a review”, International Journal of Retail & Distribution Management, Vol. 23 No. 10, pp. 4-20. Donnellan, J. (1996), Merchandise Buying and Management, Fairchild Publications, New York, NY. Dube, L. and Menon, K. (2000), “Multiple roles of consumption emotions in post-purchase satisfaction with service transactions”, International Journal of Service Industry Management, Vol. 11 No. 3, pp. 287-304. Ehrenberg, A.S.C., Goodhardt, G.J. and Barwise, T.P. (1990), “Double jeopardy revisited”, Journal of Marketing, Vol. 54, pp. 82-91. Eppes, T. (1997), “Begin managing customer relationships now”, Marketing News, Vol. 31 No. 16, p. 4. Fernie, J. (1997), “”Retail change and retail logistics in the United Kingdom: past trends and future prospects”, Services Industries Journal, Vol. 17 No. 3, pp. 383-96. Fisk, G. (1961), “A conceptual model for studying customer image”, Journal of Retailing, Vol. 37, Winter, pp. 1-8. Fitzpatrick, R. (2002), “Young spenders”, Drapers Record, 2 March, pp. 26-7. Forsythe, S.M. (1991), “Effect of private, designer, and national brand names on shoppers’ perception of apparel quality and price”, Clothing and Textiles Research Journal, Vol. 9 No. 2, pp. 1-6. Foxall, R.G. and Hackett, P. (1994), “Consumer satisfaction with Birmingham’s international convention centre”, The Service Industries Journal, Vol. 14 No. 3, pp. 369-80. Gagliano, K.B. and Hathcote, J. (1994), “Customer expectations and perceptions of service quality in retailing”, Journal of Services Marketing, Vol. 8 No. 1, pp. 60-9. Golden, L.L., Albaum, G. and Zimmer, M. (1987), “The numerical comparative scale: and economical format for retail image measurement”, Journal of Retailing, Vol. 63 No. 4, pp. 393-410. Goldsmith, R.E., Heitmeyer, J.R. and Frieden, J.B. (1991), “Social values and fashion leadership”, Clothing and Textiles Research Journal, Vol. 10 No. 1, pp. 37-45.

Greenberg, C.J., Sherman, E. and Schiffman, L.G. (1983), “The measurement of fashion image as a determinant of store patronage”, in Darden, W.R. and Lusch, R.F. (Eds), Patronage Behavior and Retail Management, North-Holland, New York, NY, pp. 151-63. Gulas, C.S. and Schewe, C.D. (1994), “Atmospheric segmentation: managing store image with background music”, in Acrol, R. and Mitchell, A. (Eds), Enhancing Knowledge Development in Marketing, American Marketing Association, Chicago, IL, pp. 325-30. Gutman, J. and Mills, M. (1982), “Fashion life style, self-concept, shopping orientation, and store patronage: an integrative analysis”, Journal of Retailing, Vol. 58 No. 2, pp. 64-86. Hackett, P. and Foxall, R.G. (1994), “A factor analytical study of consumer location specifies values: a traditional high street and modern shopping mall”, Journal of Marketing Management, Vol. 10 No. 1, pp. 163-78. Hair, J.F., Anderson, R.E., Tatham, R.L. and Black, W.C. (1995), Multivariate Data Analysis with Readings, 4th ed., Prentice-Hall International ed., London. Hall, L. (2002), “Etam launches ad trial as sales show uplift”, Drapers Record, 23 March, p. 6. Hansen, R.A. and Deutscher, T. (1977), “An empirical investigation of attribute importance in retail store selection”, Journal of Retailing, Vol. 53 No. 4, pp. 59-72. Harris, L.C. (2000), “The organizational barriers to developing marketing orientation”, European Journal of Marketing, Vol. 34 No. 5/6, pp. 598-624. Hirschman, E.C., Greenberg, B. and Robertson, D.H. (1978), “The intermarket reliability of retail image research: an empirical examination”, Journal of Retailing, Vol. 54 No. 1, pp. 3-12. Holahan, C.J. (1982), Environmental Psychology, Random House, Inc., New York, NY. Horridge, P. and Richards, L. (1984), “Relationships of fashion awareness and apparel economic practices”, Home Economics Research Journal, Vol. 13 No. 2, pp. 138-45. Hurley, R.F. and Hult, G.T.M. (1998), “Innovation, market orientation, and organizational learning: an integration and empirical examination”, Journal of Marketing, Vol. 62 No. 3, p. 42. Jankowicz, N.W. (1991), A Handbook of Qualitative Methodologies for Mass Communication Research, Routledge, London. Kaiser, S.B. (1990), The Social Psychology of Apparel, 2nd ed., Macmillan, New York, NY. Kelley, R.F. and Stephenson, R. (1967), “The semantic differential: an information source for designing retail patronage appeal”, Journal of Marketing, Vol. 31, October, pp. 43-7. Kotler, P. (1974), “Atmospherics as a marketing tool”, Journal of Retailing, Vol. 49 No. 4, pp. 48-64. Leung, C.S., Zhang, Z.M. and Lee, T.S. (2000), “Brand image marketing: salient benefits sought by fashion consumers for needs fulfilment”, Journal of the Textile Institute, Vol. 91 No. 2, pp. 107-13. Lindquist, J.D. (1974), “Meaning of image”, Journal of Retailing, Vol. 50 No. 4, pp. 29-38, 116. Liu, H. and Davies, G. (1996), “Marketing orientation in UK multiple retail companies: nature and pattern”, International Journal of Service Industry Management, Vol. 8 No. 2, pp. 170-87. McDougall, G.H.G. and Fry, J.N. (1974), “Combining two methods of image measurement”, Journal of Retailing, Vol. 50 No. 4, pp. 53-61. McGoldrick, P.J. and Greenland, S.J. (1994), Retailing of Financial Services, McGraw-Hill, London. McKenna, E. (2000), Business Psychology and Organisational Behaviour, 3rd ed., Psychology Press Limited, Hove. Malhotra, N.K. (1999), Marketing research: An Applied Orientation, 3rd ed., Prentice-Hall International, London. .

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The changing nature of Japanese fashion Can quick response improve supply chain efficiency? John Fernie Heriot-Watt University, Edinburgh, UK, and

Nobukazu Azuma The Institute of Marketing and Distribution Sciences, Kobe, Japan Keywords Fashion industry, Quick response retailing, Supply chain management, Industrial countries, Japan Abstract The offshore migration of fashion manufacturing from established markets to offshore countries, and the increasingly complex nature of fashion consumption has played a crucial role in transforming the way fashion is perceived in the contemporary world. Globalisation of the fashion industry has allowed consumers to gain easier access to the in-vogue style at an increasingly inexpensive price. This paper explores the future direction of fashion in the industrialised economies through the experience of the Japanese fashion industry from a small manufacturers’ perspective. Empirical findings from a questionnaire survey reveal the fundamental gaps that exist between the theory and the practice, in light of the original premise that quick response (QR) could be the vehicle for a survival strategy of domestic apparel manufacturing in the industrial economies.

European Journal of Marketing Vol. 38 No. 7, 2004 pp. 790-808 q Emerald Group Publishing Limited 0309-0566 DOI 10.1108/03090560410539258

The changing nature of modern fashion The migration of fashion manufacturing from established markets to offshore countries has played a crucial role in transforming the way fashion is created and consumed in the contemporary world, together with the complex nature of consumption that represents fashion today. Whilst fashion is deeply rooted in a set of geographically specific parameters, the commoditisation of clothes (Agins, 1999), coupled with the advance in information technologies, logistical/process innovations, and a gradual relaxation of international regulations on the textiles and apparel trades has allowed transnational fashion firms to embark on shifting their manufacturing operations to low cost, offshore markets (Azuma and Fernie, 2003). With the progress in both core and auxiliary technologies and structural changes in the socio-economic environment, fashion is no longer a “class differentiation” phenomenon that trickles down (Simmel, 1904) from the upper echelon of society to their subordinate classes. The equation of fashion consumption with that of use value, exchange value, and symbolic value (Baudrillard, 1998) is becoming more and more opaque. Fashion can and does spring up from any part of the social ladder and quickly spreads across the entire market (King, 1963; King and Ring, 1980). Much of the success experienced by a group of fashion firms is attributed to their capability in innovatively copying competitors and driving the cycle of “nominal innovation” in an institutionally short-term competitive horizon that is peculiar to the fashion industry (Azuma et al., 2004).

Although haute couture and high fashion still possess a certain degree of influence over the direction of the bi-annual trends, fashion in modernity (Du Gay, 1997) affects everyone and not solely a specific section of the population with its ephemera (Lipovetsky, 1994). The trend surrounding fashion today is now linked more with equality, self-image, and a sense of individualism within the systemic process of creation, manufacturing, marketing, and consumption on a global web of communication and transportation (Robinson, 1958;Wilcox, 2001; Carr and Pomeroy, 1992). Its consequence has certainly allowed consumers to gain easier access to the in-vogue style at an increasingly inexpensive price. However, it is often overlooked that there are negative aspects of the global manufacturing operation, such as the lack of concern about the environmental and human rights issues in some host nations. The textile-apparel (T-A) complex (Abernathy et al., 1999) consists of a long and multifaceted supply chain that contains multiple labour-intensive and time-consuming processes. The T-A industry, by its nature, is susceptible not only to changing consumer tastes and socio-economic factors but also to market fluctuations in raw material supplies. The endless desire for variety in fashion and styles on the consumption side and the need for it on the supply side makes it a mandate for the participant of a fashion supply chain to establish a networked division of labours which can effectually fulfil such functions with as small a financial risk as possible on a single firm basis. Bringing the decoupling point (Meijboom, 1999) back up and hence integrating the entire fashion supply chain is virtually impossible, because of the limitations in accelerating the speed of sourcing and manufacturing before the fabric stage, in response to changing requirements in the marketplace. This is deemed one of the major reasons as to why an apparently “old-fashioned” long and complex supply chain still retains its traditional forms (Tamura, 1975), and so has been the obstacle to the implementation of the “modern” and “rational” philosophy of quick response (QR) and supply chain management. In addition to this, fashion firms are always faced with considerable risks of imitation by their competitors, which can sometimes nullify its own innovation. By sharing common suppliers, interior decorators, consulting firms, sales promotion companies, third party logistics service providers, credit card operators, and IT service providers, a fashion firm’s operational expertises are passed on from one party to another, thus decimating the operational competence of a company, and hence the sustainable competitive advantage (Barney, 2002). Higher occurrences of job-hopping in the fashion industry also stimulate the leakage of corporate-specific “tacit knowledge” from one company to another. This fluid movement of human resources in the entire industry encourages the formation of “tacit knowledge” that works within the particular environment at a specific company and is translated into a “common knowledge” among a much larger group of the players in the industry. As firms’ market-orientation capabilities become more sophisticated in the industry as a whole, there is a tendency of market homogenisation. Offshore transfer of the labour intensive stage of the supply chain to low-cost countries has been one of the favourite options of companies in the industrialised nations to offset some of the risks in the volatile world of fashion, on the basis of a justification that the benefit of reducing labour costs can offset the “speed”, “quality” and the “cultural content”, which traditionally are the positive features inherent to domestic manufacturing in an industrialised economy, vis-a`-vis inexpensive offshore imports. The fashion industry, thus, became one of the earliest to undergo an offshore

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migration of its manufacturing base. It is the most geographically dispersed of all industries across both industrial and industrialising economies. In apparel manufacturing, capital intensity is generally low, labour intensity is high, the average plant size is small and the technology tends to be relatively unsophisticated. There is a complex set of factors that affect the globalisation of the fashion supply chain; natural resource (including low-cost labour) acquisition, new market development, pursuit of global brand portfolio, complementary strategic asset seeking (Bolisiani and Scarso, 1996), and trade policies (e.g. OPT (outward processing trade), OPA (outward processing arrangement) and MFA (multi fibre agreement)). However, there is little doubt that labour costs are among the most significant production factors. Not only is clothing one of the most labour-intensive industries in modern economies but also costs are the most geographically variable (Dickerson, 1995; Dicken, 1998). For example, there exists a 1,000 to 3,000 per cent labour cost gap between the Japanese and the Chinese apparel industries (Ohmae, 2002). Even allowing for productivity differences and difficulties in transferring the skills, management styles, and a common standard of quality assurance (Pan, 2001; Fujii, 2001) across varied cultural settings, the developing countries have an enormous labour cost advantage over the advanced market economies, particularly in the garment assembly phases. In addition this is leading to a gradual upgrading in skills and technologies which can increase the variety and quality of garments that are available from those industrialising economies. As the globalisation process of the fashion supply chain advances, the T-A complex in the industrial economies has commonly witnessed a drastic decimation in their domestic fashion manufacturing. It is, one way or another, a natural outcome of fierce competition in the fashion business that a dramatic transfer of apparel manufacturing to the peripheral nations has taken place. This phenomenon corresponds with the theory of economic upgrading (Gereffi, 1999, 2001; Dicken, 1998) in which gradual transfers of manufacturing from the advanced economies to the less developed ones lead to the economic growth of the peripheral nations towards established economies. Starting with the assembly of simple garments and low-technology organic materials, continuous improvement in manufacturing quality/efficiency and hence the standard of living in the local market creates further need for a nation’s T-A complex to augment both the quality of items and the variety of materials and fashion/styles in order to absorb the increase in labour, and other cost drivers. The Japanese T-A industry is counted amongst one of those nations, together with the UK, The Netherlands, Germany, France, and Belgium that have reached the final stage of the development path (Dicken, 1998) of the theory of industrial upgrading where substantial reduction in employment and number of production units have occurred. These nations’ T-A industry is commonly faced with severe problems of offshore competition and substantial trade deficits. Whilst Japan once boasted of its competence as a major exporter of textiles and apparel products, it has lost ground in the midst of a global spread of the fashion supply network over the last three decades. Offshore competition in the luxury segment, such as from Italy, as well as in the casual wear segment mainly from China and other Pacific Basin countries, have dramatically increased the import penetration rate in the Japanese clothing market and hence undermined the existence of the T-A industrial districts across the nation (Itami, 2001).

The official quick response (QR) initiative in Japan was commenced in 1994 by QRPA (Quick Response Promotion Association), a joint effort of the private sector in the fashion industry, in order to regain competence of domestic fashion manufacturing, capitalising on the skills, high-tech materials, and Japanese pre-eminence in fashion creation that has recently drawn attention from fashion houses all over the world. It was eight years after Kurt Salmon Associates (KSA) implemented the first QR programme in the USA. There existed various examples of QR practices at a corporate level well before the term Quick Response was introduced in the USA. The programme initiated by QRPA finds its roots in MITI’s (Japanese Ministry of International Trade and Industry, now METI (Ministry of Economy, Trade, and Industry)) 1993 Seni Vision (Textiles Vision) in which a market-driven fashion supply chain was proposed as a pillar of the industrial restructuring policy (MITI, 1993). MITI’s (1993) Textiles Vision proposed an industry-wide QR effort that is synonymous with the original tenet of the US-born quick response (QR) as the survival strategy of domestic manufacturers in the face of growing competition from low cost imports (Hunter, 1990). This paper analyses the globalisation process of the fashion industry and the reality of QR as the survival strategy of domestic manufacturing in the industrialised economies, through the experiences of the Japanese apparel sector. This will first discuss the changing nature of the Japanese fashion industry, followed by an introduction to the concept of QR and supply chain management (SCM), together with an overview of QR initiatives in Japan. The empirical part of this study investigates the benefits and potential pitfalls of QR practice in the mid-to-down stream sectors of the Japanese fashion industry. The current status of QR implementation in the mid-stream of the supply chain will then be discussed. Findings of this study have some implications for fashion supply chain frameworks elsewhere. Fashion in Japan The market The Japanese fashion market is characterised by a fast-moving trend cycle with a vast choice of styles of quality items. This is partly because there are significant differences among the four seasons, which necessitate the consumer to have the right wardrobe for each season (Azuma, 2002). Historically a closed society with a homogeneous general population, Japan requires less size variety than most of the countries in the world (Fisher et al., 1999). This enables the Japanese consumers to enjoy a diverse range of designs, from basic fashion to prestigious brands. The highly urbanised nature and so densely populated landscape in Japan naturally creates consumers’ (often subconscious) desire for differentiation (Baudrillard, 1998; Galbraith, 1958), and this is counted as another source of the variety that characterises the form of fashion consumption and the practice in the Japanese fashion industry. It has become a common practice among the major apparel firms in the “bridge fashion segment” to implement a weekly merchandising method, in which firms do not rely solely on a seasonal collection and, instead, they respond to market fluctuations by reducing the time gap that lapses between the design phase of the products and the point of consumption (Guercini, 2001; Azuma, 2001, 2002; Kojima, 1999). These fast moving trend cycles are also evident in fashion retail formats. No single format can remain best practice in such a market in which the wheel of retailing (McNair, 1958; Brown, 1990) is constantly accelerated by the media hype that has a close link with corporate

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marketing activities. More than 130 titles of fashion presses are distributed and their impacts on the dissemination and diffusion of fashion trends are deemed substantial in the Japanese market (Sakaguchi, 1992), together with the impacts of the role model figures of the time and the peer pressures/interactions within and between social groupings. The Japanese fashion designs on the international catwalk are renowned for its juxtaposed expressions of the traditional and high-tech elements. Japanese pre-eminence in the development of synthetic yarns as well as youngsters’ subcultural (Hebdige, 1979) street styles has provided generations of Japanese designers with a unique source of inspiration to stand out in the arena of contemporary fashion (Braddock and O’Mahony, 1998). Despite the sluggish economy since the early 1990s, the resultant reduction in the size of the apparel retail market and decrease in the share of fashion spending in annual household expenditure, consumers continue to make discretionary purchases on fashion items as a legacy of their experiences during the “bubble economy”. Therefore, dramatic drops in the retail prices index in the apparel garment sector over the last decade has not led to consumers distaste for luxury brands and high-fashion garments. More than one in every three (36 million) Japanese women own branded goods of Louis Vuitton and a 1.2-trillion-Yen luxury fashion market makes Tokyo one of the most popular retail destinations for international fashion. Amongst the 4,000 stores directly operated by Italian luxury fashion houses worldwide, Tokyo has the largest concentration of those brand boutiques, accounting for 188 shops, which is followed by Milan (124), Seoul (108), Paris (92), New York (76) and London (72) (Senken Shimbun, 2000). Omotesando district literally showcases the global fashion competition at all levels; not only the prestige brands like those of LVMH, Gucci, and Prada groups are agglomerated, but also middle market players, e.g. Zara, Guess, Morgan, Benetton, The Gap, and Japanese SPA (Specialty Retailer of Private Label Apparel) stores, and budget retailers, such as UNIQLO and Giordano (Hong Kong) operate next to each other in this same fashion street. Besides, commercial agglomeration of fragmented street-fashion brands boutiques in the Greater Shibuya District represents the contemporary fashion in Japan, which is not restrained by the impact of Western fashion. This district has won an international reputation as one of the major sources of fashion inspiration for many of the international catwalk designers. The spread of such fashion agglomerations populated with creative class (Florida, 2002, 2003; Komiya, 2001, 2003a, b) people are observed across the nation, and this marks a distinctive feature of both distribution and consumption of fashion in contemporary Japan. What has once been negated under the philosophy of modern distribution, such as low-tech face-to-face communications, inefficient small retail formats, and make-to-order “non quick” fashion, is attracting a growing niche of the market. This is, in turn, sustained by a group of creative class population who are willing to trade part of their financial benefits for the work they enjoy (Florida, 2002, 2003; Komiya, 2003a). The industry The Japanese T-A industry once boasted of its status as the largest export industry in the national economy. However, it has lost this reputation in the last three decades, due mainly to: government policies; soaring value of the Yen; and environmental changes

in the global fashion industry. The year 1971 marks the turning point of Japanese fashion in its transformation from a leading exporter into a domestic market-oriented industry. An American-led revaluation of the Yen from 360 Yen/$ to 308 Yen/$ had a significant impact on export operations. The rate dropped further to 272 Yen/$ in 1973. It was a political initiative, however, that drastically reshaped the nature of the Japanese fashion industry in the 1970s. Upon signing The US-Japan Textiles Agreement, the Japanese Government decided to exercise control on textiles and apparel exports to the USA in exchange for regaining the US-occupied Okinawa Island. The government literally sold ito (means “fibre” in Japanese and so connotes the T-A industry) and bought nawa (Okinawa: nawa means “rope” in Japanese) from the USA (Itami, 2001). Furthermore, the oil crisis in 1973 curtailed the supplies of petroleum, impacting upon Japanese export-oriented production of synthetic materials. The Japanese T-A complex, thus, started to show a symptom of decline as an export industry. The 1980s witnessed a further transformation phase of the Japanese fashion industry. Despite the soaring value of the Yen and the industrial policy of the Government to limit exports to the USA, the import penetration rate in the apparel garment sector between the 1970s and 1986 was around 10 per cent on a value basis. It was, in fact, the Plaza Agreement in 1986 that prevented the Japanese T-A complex from remaining competitive in the international export league. A soaring value of Yen in the following years (238 Yen/$ in 1985, 168 Yen/$ in 1986, 144 Yen/$ in 1987) led to the offshore transfer of apparel manufacturing, first to South Korea during the 1980s, and then to China from the 1990s onwards. A combination of the lowered tariff rates in 1995 and the strong Yen against both the US dollar and Chinese RMB has undermined the existence of domestic fashion manufacturing in Japan. The imports (woven and knitted) from China in 2001 account for 1.59 trillion Yen and 2.74 billion pieces, which is 80 per cent and 87 per cent of the Japanese total apparel garment imports respectively on a value and quantity basis. The quantity-based import penetration in 2002 reached as high as 89.4 per cent. The value-based figures, on the other hand, have shown a relatively moderate increase, registering 29 per cent in 1995 and 40 per cent in 2000. This is due partly to the decrease in the average import/retail price of the apparel merchandise. Increasing offshore competition has pushed the domestic fashion manufacturing to the brink of survival. Although the growing national economy and the size of the consumer market helped the sector secure its position, the economic slump since the early 1990s has highlighted the real problems within the Japanese fashion industry. In the face of fierce offshore competition and stagnant demand, the Japanese fashion industry sought ways to compete in this changing market environment. QR concept and QR in Japan The concept of QR The term quick response (QR) was coined in the USA in 1985 (Fernie, 1994; Hines, 2001) when Kurt Salmon Associates (KSA) recognised deficiencies in the fashion supply chain. According to KSA, only 11 weeks out of the 66-week lead-time in the pipeline are spent on the actual processes (value-adding time/horizontal-time), and the rest (non-value adding time/vertical time) are wasted in the form of WIP (work-in-process) and finished inventories at various stages of the complex system

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(Kurt Salmon Associates, 1997, Christopher, 1997, 1998; Christopher and Peck, 1998). The resultant losses arising from this were estimated at 25 billion dollars, due to stocking too large an inventory of unwanted items and too small of the fast-movers. In response to this situation, the American textiles, apparel and retail industries formed VICS (Voluntary Interindustry Commerce Standards Association) in 1986 as their joint effort to streamline the supply chain and make a significant contribution in getting the in-vogue style at the right time in the right place (Fernie, 1994, 1998) with increased variety (Giunipero et al., 2001; Lowson, 1998; Lowson et al., 1999) and inexpensive prices. This is done by applying an industry standard in information technologies (e.g. barcode, EDI, shipping container marking, roll ID, etc.) and contractual procedures (Lowson et al., 1999; Ko et al., 2000; Giunipero et al., 2001) among the supply chain members. Not only is QR an IT-driven systematic approach (Forza and Vinelli, 1996, 1997, 2000; Hunter, 1990; Riddle et al., 1999) to achieve supply chain efficiency from raw materials to retail stores, but also is it a WIN-WIN partnership in which each member of the supply chain shares the risks and the benefits of the partnership on an equal basis to realize the philosophy of “the whole is stronger than the parts”. QR, in principle, requires the traditional buyer-supplier relationship that is too often motivated by opportunism, to transform into a more collaborative partnership. In this QR partnership, the objectives of the vendor are to develop the customer’s business. The benefit to the vendor is the likelihood that they will be treated as a preferred supplier. At the same time, the costs of serving that customer should be lower as a result of a greater sharing of information, integrated logistics systems and so on (Christopher, 1997; Christopher and Juttner, 2000). Thus, partnership among the supply chain members is a prerequisite of QR programmes. QR’s ultimate goal, nonetheless, is to give customers the savings that are gained through the initiative (Giunipero et al., 2001). The last, and perhaps one of the most important tenets of the original proposition of the QR concept is that QR is a survival strategy of the domestic manufacturing sector in the advanced economies against competition from low-cost imports (Finnie, 1992; MITI, 1993, 1995, 1999; METI, 2002). In the case of the USA, the QR initiative was expected to make a considerable contribution to the Pride with the USA campaign, which promoted the excellence of US-made products to American consumers, who had already been familiar with inexpensive imported casual clothing. With the basic fashion category, relatively steady demand is a feature of the market; therefore, the US-born QR concept places much focus on the relationship between retailers and the apparel manufacturers. The eventual benefits on both parties are detailed in Table I. Giunipero et al. (2001) summarize the hierarchical process of QR adaptation as an integral part of QR as business process reengineering (BPR) as shown below (see also Kurt Salmon Associates, 1997): (1) Stage 1. Introduction of basic QR technologies: . SKU level scanning; . JAN (standard) barcode; . use of EDI; and . use of standard EDI.

(2) Stage 2. Internal process reengineering via technological and organizational improvement: . electronic communication for replenishment; . use of cross-docking; . small amounts of inventory in the system; . small lot size order processing; . ARP (automatic replenishment program); . JIT (just-in-time) delivery; . SCM (shipping container marking); and . ASN (shipping container marking). (3) Stage 3. Realization of a collaborative supply chain and win-win relationship: . real-time sales data sharing; . stockout data sharing; . QR team meets with partnerships; and . MRP (material resource planning).

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This model, most appropriate for the apparel-retail linkage in basic clothing, has become a role model for QR programmes in other advanced economies, including Japan. Having achieved many of the QR goals, VICS has implemented a CPFR (collaborative planning, forecasting, and replenishment) programme, to synchronize market fluctuations and the supply chain in a more real-time fashion. Through establishing firm contracts among supply chain members and allowing them to share key information, CPFR makes the forecasting, production, and replenishment cycle ever closer to the actual demands in the marketplace (VICS, 1998). Whilst the American practices have played a leading role in the QR and SCM initiatives in the apparel industry, much of the success is in the basic fashion segment, where the manufacturing phase is normally the first to be transferred offshore. In this sense, the philosophy of QR as the survival strategy of fashion manufacturing in the industrial economies has not been realised. QR in Japan Whilst the US apparel industry competes largely on a cost basis in the basic fashion segment, Japanese firms have forged their success on bridge fashion with flexible Retailers’ QR benefits

Suppliers’ QR benefits

Reduced costs Reduced inventories Faster merchandise flow Customer satisfaction Increased sales Competitive advantage

Reduced costs Predictable production cycles Frequency of orders Closer ties to retailers Ability to monitor sales Competitive advantage

Source: Quick Response Services (1995)

Table I. Retailers’ and suppliers’ QR benefits

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Figure 1. The structure of the Japanese fashion industry

specialization (Piore and Sabel, 1984) in a subcontracting network of process specialists in the industrial districts (Sanchi) led by the “apparel firms” with design and marketing expertise. Fashion-oriented, non-basic clothing accounts for almost 55 per cent retail share in the women’s apparel market in Japan (MITI, 1999). The US fashion industry essentially produces for the international market that is mostly controlled by the largest retailers, which are the real promoters and the first to profit from QR (Scarso, 1997; Taplin and Ordovensky, 1995). Thus, the Japanese fashion industry shows clear contrasts to its US and most of the European counterparts, where large retailers control the supply chain (Azuma, 2001). As explained in the previous sections, harsh competition from offshore and stagnant domestic consumption in the past decade has come to highlight the costly structure and the lack of partnership in the Japanese fashion supply chain (MITI, 1993, 1999; METI, 2002). This led to the formation of QRPA (Quick Response Promotion Association; now FISPA (Fashion Industry SCM Promotion Association)) in 1994, as a joint endeavour of the Japanese T-A-R (textiles-apparel-retailing) industries to regain competitiveness of the overall domestic industry in order to effectively and efficiently serve ever-changing customers’ needs. Ten years has passed since the introduction of the first QR initiative in the Japanese fashion industry. A series of programmes has been implemented in an orderly manner, from the retail-textiles, textiles-apparel, to apparel-sewing interfaces (Figure 1). FBA (fashion business architecture) is an application of CPFR to the interface of the Japanese department stores and apparel firms. With an increasing adaptation of the industry standard platforms, such as EDI (JAIC: Japan Apparel Industry Council format), JAN (Japan article number) code, and ASN (advanced shipping notice), department stores and apparel firms have achieved some of the expected QR benefits by eliminating the labour-intensive and costly processes of ticketing and inspections in a smooth flow of information. Elsewhere in the supply chain, however, there are fewer QR initiatives, apart from some positive results at a T-A collaboration programme in men’s heavy garments manufacturing, and a fibre-sourcing network at the highly concentrated sector upstream of the supply chain.

In fact, there are more problems than benefits to be found around the Japanese QR initiatives. First of all, it is essentially difficult in the bridge fashion segment to bring the decoupling point (Meijboom, 1999) further up the supply chain at the raw material stage, since the trend lifecycle is around one to two weeks. Secondly, textile converters and trading companies (shosha) are unwilling to share inventory information with their apparel customers. There exists an adversarial market mechanism between the two parties. The role played by these converters is crucial in the Japanese fashion industry in assuring the variety that is required in the market. For an apparel firm, long-term partnership with a limited number of suppliers may end up curtailing their capability in catering for the consumer with a variety of fashion styles. Thirdly, the current initiatives are limited mostly to the R-A sectors, especially between department stores and medium-to-large scale apparel firms. The GMS sector, overall, is indifferent to the initiative. This is partly because of a rather minor share of clothing sales (20-30 per cent), and a sectoral indifference to QR, which derives from their unsuitable business procedures for QR, such as inventory returns to their suppliers (FISPA, 2003). Some of the major apparel firms and retailers have succeeded in forward/backward (virtual and loose) integration, in order that they can complete their business within their own frameworks. The most serious problem, however, is that the programmes have failed in covering the entirety of the Japanese fashion supply chain. Due partially to the fact that many of the QR-related systems from the early days were developed with governmental support; there was always a need for the recipients to spend the subsidies. The result is that a whole range of technically elaborate, but expensive systems have been developed. Large apparel firms have little need for them, as they are equipped with in-house systems. For the small firms these technologies are too advanced and expensive. Many of the medium-size companies (approximately 2 billion Yen annual sales) have yet to depreciate their costly investment in mainframe computers during the “bubble economy”, and so cannot afford further investment in IT systems. At the same time, IT personnel at these firms must secure their jobs by sticking to the existing systems rather than switching to a more efficient and reasonable QR infrastructure. Thus, QR initiatives have not necessarily worked out throughout all of the domestic apparel manufacturing sector. Unless the on-going partnershipping programme in the mid-stream of the supply chain is accomplished, the Japanese QR in the long-run is likely to be limited to retailing and apparel firms, providing that offshore sourcing locations are becoming less important. Nevertheless, apparel-sewing (A-S) Net, one of the current initiatives linking the apparel firms with their sewing subcontractors, is designed to be applied for sourcing in China. Research methodology: TKF-JAIC survey (QR survey in Tokyo) Sample In recognition of the characteristics of the QR initiatives in Japan, the empirical part of this paper is to analyse the benefits and potential pitfalls of QR practice in the mid-to-down stream of the supply chain. Comparing and contrasting the perception and achievement levels of QR between the apparel firms and their (subcontracting) production partners is an important part of this study, since an exclusion of SME firms was found problematic in the current QR programmes. The sample was selected from two trade associations that comply with the aim of the research; Japan Apparel

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Industry Council Tokyo Women’s and Children’s Wear Branch (JAIC) that epitomizes the former type of firms and Tokyo Knit Fashion Association (TKF) that represents the latter part of the industry. Survey A structured survey was designed based on the key elements identified through a sequence of in-depth interviews in June 1999 onwards on both apparel firms and SME manufacturers. A continuous review of related literature (Hunter, 1990; Ko and Kincade, 1997; Ko et al., 2000; Fiorito et al., 1999; Lowson et al., 1999; Lowson, 1998; Forza and Vinelli, 1996, 1997, 2000; Bolisiani and Scarso, 1996; Riddle et al., 1999; Kurt Salmon Associates, 1997; Kincade, 1995) helped the authors formulate the following research questions: . To what extent can the American hierarchical model of QR implementation be applied to the Japanese fashion industry? . Are QR benefits, if any, equally distributed between fragmented knitted-wear manufacturers and their down-stream apparel firm customers? . Is QR becoming a more global supply chain concept than its original proposition as a survival strategy for domestic fashion manufacturing in the industrial economies? A 19-page (eight-page electronic) questionnaire consisted of six sections (23 questions) for the JAIC group and seven sections (25 questions) for the TKF cluster. A total of 14 questions concerned specific QR issues were interchangeably designed between the two questionnaire formats. A five-point scale items were used in five questions. Statistical techniques employed in this survey were limited to mean differences (t-tests) and frequency analyses due to the small size of the sample. Only a key portion of the results is to be reported in this paper. The questionnaire booklet on QR and related issues was addressed initially by post to 252 JAIC and 300 TKF firms with self-addressed return envelopes. An electronic questionnaire was dispatched via e-mail to the non-responding sample population, along with fax reminders from the trade associations. From this combination of postal and e-mail surveys, 51 complete questionnaires (9.92 per cent/552) were returned; 29 (11.5 per cent/252) from the JAIC and 22 (7.3 per cent/300) from the TKF. The majority of the firms cater for the seasonal (56.9 per cent) and the high-fashion (58.8 per cent) segments of women’s apparel sector. The JAIC respondents varied considerably in size accounting for total annual sales of 612 billion Yen, and the TKF cluster of SME respondents register 13 billion Yen. The relatively low response rate is not uncharacteristic for an in-depth survey in the Japanese fashion industry, which includes the “highly competitive nature in which company strategies must be kept within the company walls” (Fiorito et al., 1999). Findings and discussion The three-stage development model and its 16 components of QR implementation were measured in the sample population. Whilst this US-made QR model provides the conceptual framework of the current QR initiatives in Japan, it turned out that the current situation of QR implementation does not fit into this hierarchical model (Table II). Only a single factor, “small lot order processing” in stage 2 is positively

TKF

JAIC

Stage 1. Introduction of basic QR technologies SKU level scanning JAN (standard) barcode Use of EDI Use of standard EDI

1.90 1.90 1.81 1.48

2.82 1.93 1.93 1.36

Stage 2. Internal process reengineering via technological and organizational improvement Electronic communication for replenishment Use of cross-docking Small amounts of inventory in the system Small lot size order processing ARP (automatic replenishment program) JIT (just-in-time) delivery SCM (shipping container marking) ASN (shipping container marking)

2.14 2.24 2.41 3.77* 1.86 2.45 1.67 3.05

2.36 2.57 2.64 3.61* 1.79 2.93 1.50 2.32

Stage 3. Realization of a collaborative supply chain and win-win relationship) Real-time sales data sharing Stockout data sharing QR team meets with partnerships MRP (material resource planning)

1.71 1.95 2.41 1.81

2.11 2.11 2.43 1.64

Notes: Mean scores: 1 ¼ low; 5 ¼ high; * Significant at the 0.01 level

significant through the one-sample t-test (with test value ¼ 3:00) at 1 per cent level in both groups. Furthermore, implementation of QR components at all hierarchical stages of adoption identified by Giunipero et al. (2001) reveal disappointing results. The TKF group, in particular, achieves low scores especially in the initial stage – the introduction of basic QR technologies. Scores are better, however, in both groups in stage 2, internal process engineering, than in other stages. This is a reflection on the need for firms to organise themselves efficiently to meet customers’ needs regardless of implementation of enabling technologies or partnership agreements, if the American model of QR is to be applied to the Japanese market. The overall trend in this data set supports the view that the American concept of QR is difficult to transplant into the Japanese fashion sector, where more fast-moving bridge fashion accounts for the majority share of the market. This may, however, reflect the lack of partnership attitudes in the Japanese fashion supply chain. Whilst one-week, or even a few-days lead-time is a norm in the fast-moving market, it is indeed problematic that neither the IT-based QR enabler nor the contract-based partnership is evident in much of the cases. The response of Japanese apparel firms is driven by their buyer’s power over their SME contractors, who must rely on their orders. This, on the other hand, insinuates a dilemma that cannot easily be solved in a volatile changing market that is symbolised by a vast variety of styles. Establishing long-term partnerships with a smaller number of suppliers is likely to reduce a firm’s market-orientation capabilities to flexibly and responsively cater for a diverse, fast-moving fashion market. It is, indeed, too risky to trade off the variety with a streamlined yet less flexible supply chain.

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Table II. QR development stage and implementation levels of the QR components

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The second research question to be addressed, namely the power-based relationship between the apparel firms and their contractors was confirmed by measuring the achieved QR benefits (Table III). Considering the low level of QR implementation in several areas, the results were more promising in that clear benefits were perceived by both groups, although the TKF results are not proved statistically significant. In the case of areas of common benefits – inventory reduction, competitive advantage and cost reduction, no statistically significant difference was verified between the two samples. Nevertheless, results of the one-sample t-test on an individual group basis shows that the apparel firms in the JAIC cluster have achieved greater benefits of QR than the TKF cluster; the implication of which is that the benefits of the QR initiative are not necessarily passed onto their part of the supply chain. Thus, improved customer service, faster inventory turn, competitive advantage and increased sales are achieved benefits to the JAIC sample (significant at 0.01 level whereas cost reduction was not achieved by both groups and was statistically significant at the 0.05 level as a negative factor for the TKF group). The responsiveness in the mid-to-down stream of the supply chain might possibly be enabled at the sacrifice of the SME subcontractors. This shows that QR benefits are not equally shared between members of this part of the fashion supply chain and highlights the lack of a partnership relationship and shared communication protocols in Japanese QR. The survey data regarding the sample firms’ lead-times in domestic and offshore sourcing is indicative of an increasingly globalising nature of QR and supply chain management among Japanese firms (Tables IV and V). In the TKF cluster, offshore

TKF

Table III. Achievement levels of QR benefits

Mean

Inventory reduction Improved collaboration Frequent order processing Competitive advantage Feedback of down-stream customers’ QR benefits Stable production cycles Cost reduction

3.32 3.32 3.14 3.00 2.73 2.50 2.45* (2 )

JAIC

Mean

Improved customer service Faster inventory turn Inventory reduction Competitive advantage Increased sales Increased ROI Cost reduction

3.69** 3.65** 3.45* 3.42** 3.35** 3.08 2.92

Notes: Mean scores: 1 ¼ low; 5 ¼ high; * Significant at the 0.05 level; ** Significant at the 0.01 level

Mean Table IV. TKF lead times by category (mean days)

Minimum

Domestic

Offshore

Domestic

Offshore

49.9 41.7 43.1

66.5 35.0 41.3

20.0 15.0 10.0

30.0 30.0 30.0

Cut and sewn Cut and linking Fashioning

Mean Table V. JAIC lead times by category (mean days)

Knit Woven

Minimum

Domestic

Offshore

Domestic

Offshore

54.9 44.1

76.2 63.2

20.0 9.0

40.0 14.0

sourcing indicates shorter mean lead-times in “cut and linking” (domestic, 42, and offshore, 35 days) and “fashioning” categories (domestic, 43, and offshore, 41 days), although the data are possibly affected by the small size sample (Table IV). The JAIC sample, on the other hand, witnessed significant gaps with around three-week differentials between domestic and offshore lead-times both in the knitted ( p-value ¼ 0:000; 55 and 76 days) and the woven ( p-value ¼ 0.003; 44 and 63 days) categories (Table V). Nevertheless, minimum offshore lead-times (woven, 14, and knit, 40 days) have already surpassed the domestic means (woven, 44, and knit, 55 days). The woven category, in particular, sees only a five-day gap in minimum lead-times (domestic, 9, and offshore, 14 days). Whilst the data presented here still proves the advantage of domestic manufacturing upon QR implementation, it also shows that the framework of QR is becoming increasingly global. It is, therefore, not surprising that the current QR initiative in the apparel-sewing (A-S) facet of the supply chain is aiming to integrate Chinese suppliers into their QR network. Thus the situation reported here is moving to the stage identified in the third research question that QR is becoming a more global supply chain concept than the original proposition as a survival strategy for domestic fashion manufacturers. Conclusion and practical implications In conjunction with the results gleaned from in-depth interviews with industry professionals, the empirical survey with JAIC and TKF companies have highlighted the current status of quick response (QR) in the Japanese fashion industry. Whilst much of the success of the Japanese apparel firms are a result of their responsiveness to the highly demanding and fickle consumers in the fast moving bridge-fashion segment of the fashion market, their QR, in reality, is imposed compared with the technology and contract-oriented QR “system” in the basic clothing segment in the USA. Gradual offshore transfer of QR is another salient factor that is likely to have a considerable impact on the future strategies of domestic manufacturers, especially SME contractors that have long benefited from the orders from down-stream apparel firms and retailers’ customers. When QR becomes an integrated part of the global supply chain network, these companies would be facing further difficulties in their survival. It cannot be denied that the size of the domestic manufacturing base, especially the labour-intensive segments, will decrease over time. However, there should be niche opportunities in the market for domestic manufacturers in the supply chain, as the rise of the creative class in Japanese fashion and their geographical concentration across the nation has impressed the high-fashion community of the world. It might be necessary for a fashion firm in the industrial economy to change their traditional mindset that is predominantly controlled by “speed”, “quality”, and “price”. The ultimate means of survival for domestic fashion manufacturing in an industrial economy may lie elsewhere, out of the QR and SCM legacy. For example, collaboration between the textiles suppliers, SME garment manufacturers, and stylists (designers) may possibly lead to the creation of globally appealing products. The competence of these products is based on the unique materials, skills, and design flair that are only available in Japan. In order for such networking of creative resources, it is necessary to establish a simple, yet efficient and collaborative interface that they can share in common.

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The medium-to-large scale apparel firms are likely to retain their current competence, at least in the medium term, in the course of economic restructuring in the Asian Pacific region, where they have shifted much of their manufacturing for the Japanese retail market. Now that their sourcing markets in the region are experiencing rapid economy growth, the opportunities in those markets will stimulate the internationalisation of Japanese apparel firms to supply retailers in the Asia Pacific region. However, there might appear strong competitors. Japanese trading companies (shosha) have recently increased their presence in the apparel supply chain, especially in the outsourced production of clothing in offshore markets. Whilst the roles played by shosha are limited to effectively conducting the sourcing and production phase of Japanese apparel companies, utilising both domestic and offshore suppliers, there is a possibility that some of the key know-how that has cumulated at Japanese apparel firms are transferred to them in such circumstances. From a more long-term perspective, offshore suppliers are absorbing the expertise from the Japanese apparel firms and shosha and replacing their current functions, thus upgrading from OEM suppliers to OBM (original brand manufacturing) firms. Thus, globalisation of Japanese fashion sheds light on the threats as well as the opportunities that exist in the world of fashion. QR, which was first introduced as the survival strategy of Japanese domestic manufacturers, is now applied in both offshore and domestic markets in response to changes in the global fashion industry. More fundamentally, it would be necessary for the fashion industry of the industrialised economies to reconsider the future direction of its domestic manufacturing, in light of the fact that the benefit of QR and supply chain management in the fashion industry is varied due not only to the dominant fashion types but also the industrial structure that is inherent to the patterns of consumption in a particular market.

References Abernathy, F.H., Dunlop, J.T., Hammond, J.H. and Weil, D. (1999), A Stitch in Time, Oxford University Press, New York, NY. Agins, T. (1999), The End of Fashion, William Morrow and Company, New York, NY. Azuma, N. (2001), “The reality of quick response (QR) in the Japanese fashion sector and the strategy ahead for the domestic SME apparel manufacturers”, Logistics Research Network 2001 Conference Proceedings, Heriot-Watt University, Edinburgh, pp. 11-20. Azuma, N. (2002), “Pronto Moda Tokyo style: emergence of collection-free street fashion and the Tokyo-Seoul connection”, International Journal of Retail & Distribution Management, Vol. 30 No. 3, pp. 137-44. Azuma, N. and Fernie, J. (2003), “Fashion in the globalized world and the role of virtual networks in intrinsic fashion design”, Journal of Fashion Marketing and Management, Vol. 7 No. 4, pp. 413-27. Azuma, N., Fernie, J. and Higashi, T. (2004), “Competitive advantages in the world of volatility: the paradox of market orientation in the fashion industry”, in Fernie, J. and Sparks, L. (Eds), Logistics and Retail Management, 2nd ed., Kogan Page, London. Barney, J. (2002), Gaining and Sustaining Competitive Advantage, Prentice-Hall, Englewood Cliffs, NJ. Baudrillard, J. (1998), The Consumer Society: Myths and Structure, Sage, London.

Bolisiani, E. and Scarso, E. (1996), “International manufacturing strategies: experiences from the clothing industry”, International Journal of Operations & Production Management, Vol. 16 No. 11, pp. 71-84.

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Braddock, S.E. and O’Mahony, M. (1998), Techno Textiles Revolutionary Fabrics for Fashion and Design, Thames & Hudson, London. Brown, S. (1990), “The wheel of retailing: past and future”, Journal of Retailing, Vol. 66 No. 2, pp. 143-9. Carr, H. and Pomeroy, J. (1992), Fashion Design and Product Development, Blackwell Scientific Publications, London. Christopher, M. (1997), Marketing Logistics, Butterworth-Heinemann, Oxford. Christopher, M. (1998), Logistics and Supply Chain Management, 2nd ed., Financial Times, London. Christopher, M. and Juttner, U. (2000), “Achieving supply chain excellence: the role of relationship management”, International Journal of Logistics: Research & Application, Vol. 3 No. 1, pp. 5-23. Christopher, M. and Peck, H. (1998), “Fashion logistics”, in Fernie, J. and Sparks, L. (Eds), Logistics and Retail Management, Kogan Page, London. Dicken, P. (1998), Global Shift: Transforming the World Economy, 3rd ed., Paul Chapman, London. Dickerson, K. (1995), Textiles and Apparel in the Global Economy, Prentice-Hall, Englewood Cliffs, NJ. Du Gay, P. (Ed.) (1997), Production of Culture/Culture of Production, Sage/Open University Press, London/Milton Keynes. Fernie, J. (1994), “Quick response: an international perspective”, International Journal of Physical Distribution & Logistics Management, Vol. 24 No. 6, pp. 38-46. Fernie, J. (1998), “Relationships in the supply chain”, in Fernie, J. and Sparks, L. (Eds), Logistics and Retail Management, Kogan Page, London. Finnie, T.A. (1992), Textiles and Apparel in the USA: Restructuring for the 1990s, Special Report No. 2632, Economist Intelligence Unit, London. Fiorito, S.S., Giunipero, L.C. and Oh, J. (1999), “Channel relationships and quick response implementation”, paper presented at the 10th International Conference on Research in the Distributive Trades, Stirling University, Stirling. Fisher, M.L., Raman, A. and McClelland, A.S. (1999), Supply Chain Management at World Co. Ltd, World Co. Ltd, Tokyo. FISPA (2003), homepage, available at: www.fispa.gr.jp/english/top.html Florida, R. (2002), “The rise of creative class”, The Washington Monthly, May, pp. 15-25. Florida, R. (2003), “The new American dream”, The Washington Monthly, March, pp. 26-33. Forza, C. and Vinelli, A. (1996), “An analytical scheme for the change of the apparel design process towards quick response”, International Journal of Clothing Science and Technology, Vol. 8 No. 4, pp. 28-43. Forza, C. and Vinelli, A. (1997), “Quick response in the textile-apparel industry and the support of information technologies”, Integrated Manufacturing Systems, Vol. 8 No. 3, pp. 125-36. Forza, C. and Vinelli, A. (2000), “Time compression in production and distribution within the textile-apparel chain”, Integrated Manufacturing Systems, Vol. 11 No. 2, pp. 138-46.

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Fujii, H. (2001), “Chugoku apparel sangyo no romu-kanri” (“Labour management in the Chinese apparel industry”), in Fujii, M. (Ed.), Higashi Asia ni Okeru Kokusai Bungyo to Gijutsu Iten (International Division of Labours and Technological Transfers in Eastern Asia), Minerva-Shobo, Kyoto. Galbraith, J.K. (1958), The Affluent Society, Penguin Books, London (1999 new edition).

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Gereffi, G. (1999), “International trade and industrial upgrading in the apparel commodity chain”, Journal of International Economics, Vol. 48, pp. 37-70. Gereffi, G. (2001), “Global sourcing in the US apparel industry”, Journal of Textile and Apparel Technology and Management, Vol. 2 No. 1, pp. 1-5. Giunipero, L.C., Fiorito, S.S., Pearcy, D.H. and Dandeo, L. (2001), “The impact of vendor incentives on quick response”, The International Review of Retail, Distribution and Consumer Research, Vol. 11 No. 4, pp. 359-76. Guercini, S. (2001), “Relation between branding and growth of the firm in new quick fashion formulas: analysis of an Italian case”, Journal of Fashion Marketing and Management, Vol. 5 No. 1, pp. 69-79. Hebdige, D. (1979), Subculture: The Meaning of Style, Routledge, London. Hines, T. (2001), “From analogue to digital supply chain: implications for fashion marketing”, in Hines, P. and Bruce, M. (Eds), Fashion Marketing, Contemporary Issues, Butterworth-Heinemann, Oxford. Hunter, A. (1990), Quick Response in Apparel Manufacturing: A Survey of the American Scene, The Textile Institute, Manchester. Itami, T. (2001), Nihon no Seni Sangyo – Naze Korehodo Yowaku Natte Shimattanoka (The Japanese Textiles Industry – Why Has It Lost Its Competence?), NTT Publishing, Tokyo. Kincade, D.H. (1995), “Quick response management system for apparel industry: definition through technologies”, Clothing and Textiles Research Journal, Vol. 13 No. 4, pp. 245-51. King, C.W. (1963), “Fashion adoption: a rebuttal to the ‘trickle-down’ theory”, in Greyser, S.A. (Ed.), Toward Scientific Marketing, American Marketing Association, Chicago, IL. King, C.W. and Ring, L.J. (1980), “The dynamics of style and taste adoption and diffusion: contribution from fashion theory”, in Olson, J.C. and Arbor, A. (Eds), Advances in Consumer Research, Vol. 7, Association for Consumer Research, Ann Arbor, MI. Ko, E. and Kincade, D.H. (1997), “The impact of quick response technologies on retail store attributes”, International Journal of Retail & Distribution Management, Vol. 25 No. 2, pp. 90-8. Ko, E., Kincade, D. and Brown, J.R. (2000), “Impact of business type upon the adoption of quick response technologies: the apparel industry experience”, International Journal of Operations & Production Management, Vol. 20 No. 9, pp. 1093-111. Kojima, K. (1999), SPA no Seiko Senryaku (Success Road to Specialty Retailer of Private Label Apparel), Shogyokai, Tokyo. Komiya, K. (2001), “America mura shogyo chiiki no keisei” (“The formation of American village retail agglomeration”), Case Study, Kobe Business School, Kobe, March. Komiya, K. (2003a), “Atarashii shogyochi no keisei mechanism” (“The mechanism in which a retail agglomeration is formed”), Logistics Review, Vol. 30, available at: www.sakata.co.jp/ Komiya, K. (2003b), “Jiko mokuteki shiko no kourigyosha to shinazoroe keisei” (“Self-actualisation-oriented retailers and the process of forming their retail offer”), Journal of Marketing & Distribution, Vol. 6 No. 1, pp. 81-94.

Kurt Salmon Associates (1997), Quick Response: Meeting Customer Need, Kurt Salmon Associates, Atlanta, GA. Lipovetsky, G. (1994), The Empire of Fashion: Dressing Modern Democracy, Princeton University Press, Princeton, NJ. Lowson, B. (1998), Quick Response for Small and Medium-sized Enterprises: A Feasibility Study, The Textile Institute, Manchester. Lowson, B., King, R. and Hunter, A. (1999), Quick Response: Managing Supply Chain to Meet Consumer Demand, John Wiley & Sons, New York, NY. McNair, M.P. (1958), “Significant trends and developments in the post-war period”, in Smith, A. (Ed.), Competitive Distribution in a Free High-Level Economy and Its Implications for the University, University of Pittsburgh Press, Pittsburgh, PA. Meijboom, B. (1999), “Production-to-order and international operations: a case study in the clothing industry”, International Journal of Operations & Production Management, Vol. 19 No. 5/6, pp. 602-19. METI (2002), Seni Sangyo no Genjo to Seisaku Taiou (The Current Status of the Japanese Textile Industry and the Political Responses), METI (The Japanese Ministry of Economy, Trade, and Industry (formerly MITI)), Tokyo. MITI (1993), Seni Vision (Textile Vision), MITI (The Japanese Ministry of International Trades and Industries), Tokyo. MITI (1995), Sekai Seni Sangyo Jijo (MITI World Textile Report), MITI, Tokyo. MITI (1999), Seni Vision (Textile Vision), MITI, Tokyo. Ohmae, K. (2002), Chugoku Shift, Shifting to China, Shogakukan, Tokyo. Pan, Z. (2001), Seisan System no Kaigai Iten (Offshore Transfer of Manufacturing Systems), Hakuto-Shobo, Tokyo. Piore, M.J. and Sabel, C.F. (1984), The Second Industrial Divide: Possibilities for Prosperity, Basic Books, New York, NY. Quick Response Services (1995), Quick Response Services for Retailers and Manufacturers, Quick Response Services, Richmond, CA. Riddle, E.J., Bradbard, D.A., Thomas, J.B. and Kincade, D.H. (1999), “The role of electronic data interchange in quick response”, Journal of Fashion Marketing and Management, Vol. 3 No. 2, pp. 133-46. Robinson, D.E. (1958), “Fashion theory and product design”, Harvard Business Review, Vol. 36, November/December, pp. 126-38. Sakaguchi, M. (1992), Datsu Trend Shugi (Anti-Trend in Fashion), Shogyokai, Tokyo. Scarso, E. (1997), “Beyond fashion: emerging strategies in the Italian clothing industry”, Journal of Fashion Marketing and Management, Vol. 1 No. 4, pp. 359-71. Senken Shimbun (2000), Ima Tokyo ga Ugoku (Tokyo on the Move), Senken Shimbunsha, Tokyo. Simmel, G. (1904), “Fashion”, International Quarterly, Vol. 10, pp. 130-55. Tamura, M. (1975), Seni Oroshiuri-Sho no Keiei Kouritsuka no Houkou – Seni Oroshiuri-Sho no Kinou Bunseki Houkoku (The Direction towards Textiles and Apparel Wholesalers’ Efficient Management – An Analysis on the Function of Textiles and Apparel Wholesale Merchants), Osaka Chartered Institute of Commerce, Osaka. Taplin, I.M. and Ordovensky, J.F. (1995), “Changes in buyer-supplier relationships and labor market structure: evidence from the United States”, The Journal of Clothing Technology and Management, Vol. 12, pp. 1-18.

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VICS (1998), Collaborative Planning, Forecasting, and Replenishment: Voluntary Guidelines, Voluntary Interindustry Commerce Standards Association, Lawrenceville, NJ. Wilcox, C. (Ed.) (2001), Radical Fashion, V&A Publications, London. Further reading Japan Customs (various), Boeki Tokei (Trade Statistics), Ministry of Finance, Tokyo. JUKI Co. Ltd (1980-2002), JUKI Magazine, various issues. Kim, H.-S. and Cho, S.-B. (2000), “Application of interactive generic algorithm to fashion design”, Engineering Applications of Artificial Intelligence, Vol. 13, pp. 635-44. Kojima, K. (2003), Fashion Business ha Kokyaku Saiteki ni Ugoku (The Shift of Fashion Business towards Customer Optimisation), Kou Publishing, Tokyo. METI (various), Seni and Seikatsu Yohin Tokei (Textiles and Home Goods Statistics), METI (The Japanese Ministry of Economy, Trade, and Industry (formerly MITI)), Tokyo. Statistics Bureau (various), Kakei Chosa Nenpo (Family Income and Expenditure Survey), Ministry of Public Management, Home Affairs, Posts and Telecommunications, Tokyo. Yano Keizai Kenkyujo (Yano Research Institute) (2002), Apparel Sangyo Hakusho 2002 (Apparel Industry Whitepaper 2002), Yano Research Institute, Tokyo. Appendix. Interviews Mr Noboru Abe, Senior Manager, Fashion Industry SCM Promotion Association (FISPA), Tokyo. Flandre Co. Ltd. Itochu Co. Ltd., Textile Company. Mr Kensuke, Kojima, Kojima Fashion Marketing Co. Ltd., Tokyo. KOFOTI (Korean Federation of Textile Industry), Seoul, South Korea. Lovely Queen Co. Ltd. Mr Takeyuki Matsuo, President, FB Press. Mr Nakamura, Institute of Sewing Technologies, JUKI Co. Ltd. Ohta Knit Co. Ltd. Mr Masaaki Sakaguchi, President, Synergy Planning Ltd., Tokyo. Mr Takumyo Shonai (B.A., M.A.), Former Staff, Japan Apparel Industry Council (JAIC), Tokyo. Mr Tanaka, Manager, Planning & Administration, Tokyo Knit Fashion Manufacturers Association (TKF), Tokyo. World Co. Ltd. Mr Michihito Yamada, Designer, Sanyo Shokai Co. Ltd. Yoshitake Co. Ltd.

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The current issue and full text archive of this journal is available at www.emeraldinsight.com/0309-0566.htm

Category management: a new approach for fashion marketing? Belinda Dewsnap and Cathy Hart Business School, Loughborough University, Loughborough, UK Keywords Fashion industry, Quick response retailing, Supply chain management

Category management

809 Received March 2002 Revised February 2003, September 2003 and January 2004

Abstract As a supply chain management initiative, category management has to date been the almost exclusive preserve of the grocery sector and, within that sector, limited to food categories. This paper proposes that the fashion industry might usefully follow the grocery industry’s lead and implement category management. A comprehensive review of the literature on category management highlights the opportunity for fashion marketing to consider the potential of category management, and the specific research gaps. In operationalising the subsequent research objectives, the paper reports the results of exploratory, in-depth consumer research for a particular category of intimate apparel. The managerial implications of these findings are then discussed in the context of the established eight-step category management process. The overall tentative conclusion of this study is that as a consumer-oriented joint planning tool, category management offers retailer-supplier partnerships in the fashion industry an important adjunct to the industry’s quick response methods. The paper closes with an agenda for future research.

Introduction Logistics-based quick response (QR) partnerships were initiated by the fashion industry in the mid-1980s to maximise logistics efficiencies and costs (e.g. Giunipero et al., 2001). Almost a decade later the QR model was adapted by the USA’s grocery sector as efficient consumer response (ECR) (Fiorito et al., 1995; Kotzab, 1999), and in European grocery markets, category management has been adopted as a “cornerstone” and development of these original ECR initiatives (Gruen and Shah, 2000; Kotzab, 1999). Supplier-retailer partnerships are central to both QR and category management concepts. However, while the efficiency concepts of QR and the USA’s ECR practices rely principally on retail sales data, category management uses in-depth information on the consumer to support joint marketing decisions for the category (Johnson, 1999). Furthermore, category management ignores traditional product groupings (e.g. breakfast cereals) and focuses instead on understanding the way consumers shop related products in a category (e.g. all products constituting breakfast) (Institute of Grocery Distribution (IGD), 2002; Kotzab, 1999). In essence, category management seeks to complement “supply management” improvements (i.e. improvements in sourcing, purchasing and supply) with “demand management” activities (i.e. managing assortments and the introduction of new products) (Gruen and Shah, 2000). The demand activities themselves are informed by “marketing information” (Hines, 2001, p. 23) and are focused on meeting the needs of an increasingly demanding The authors are grateful to the editor and the two anonymous reviewers for their very valuable comments and suggestions.

European Journal of Marketing Vol. 38 No. 7, 2004 pp. 809-834 q Emerald Group Publishing Limited 0309-0566 DOI 10.1108/03090560410539267

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and highly complex consumer (IGD, 1999; Johnson, 1999). Although the supply chain efficiencies and cost savings of QR enhance the retailer-supplier partnership’s business performance, it is considered that once these types of cost and efficiency improvements have been made, they merely become “industry norms” (e.g. Johnson, 1999, p. 260). By contrast, category management’s focus on leveraging consumer understanding to develop category-based consumer “solutions” (Wellman, 1997) offers an opportunity for creating sustainable competitive advantage (Johnson, 1999; Joint Industry Report on Efficient Consumer Response, 1995). Delivering customer value in this way is totally in line with contemporary views of supply chain management (Hines, 2001). Category management has enjoyed rapidly growing acceptance and implementation by retailers and suppliers in the grocery sector around the world (Basuroy et al., 2001; Dussart, 1998; IGD, 2002). On the basis of its reported positive outcomes, it is not difficult to understand its high adoption rates. Results from a recent survey by the UK’s Institute of Grocery Distribution (IGD, 2002) show how the majority of category management practitioners believe that category management improves turnover, profitability, market share, inventory levels, trading relationships, and consumer understanding. Academic empirical research also reports the positive effects of implementing category management. It is found to positively affect retailer prices and profitability (Basuroy et al., 2001), and the implementation of category plans is perceived by suppliers to positively affect category performance (Dhar et al., 2001). Diffusion of category management to other sectors is now underway (Basuroy et al., 2001; Dussart, 1998; IGD, 2002; Kotzab, 1999). However, there is no evidence in the literature or from industry intelligence that the fashion sector has embraced category management. Indeed with regard to the latter, discussions with key informants working in the fashion departments of two of the UK’s leading food retailers and in menswear for one of the UK’s leading department store chains indicate that as yet no attempt has been made to adopt category management. The purpose of this study is therefore to explore how category management might be applied to fashion marketing. Specifically, the paper reports the results of an exploratory study that seeks to clarify the role of consumer behaviour research in category management. This is achieved by identifying how the collected consumer intelligence can inform a supplier-retailer’s joint category management planning process. The remainder of this paper is structured as follows. The next section presents a comprehensive review of the extant literature on category management and from this, identifies research opportunities in this area. This section also outlines the grocery industry’s established category management process. Building on this review, the second section discusses the data collection and analysis methods used in the present study. This is followed by a presentation of the study’s findings. Next, the managerial implications of the findings are discussed via their application to the strategy and tactics planning phases of the category management process. The paper concludes with an agenda for further research in the area. Literature review Introduction The “consumer-centric” thrust of category management (IGD, 2002; Mathews, 1996; Pearce, 1996) is embraced in the grocery industry’s agreed definition of category

management as “the strategic management of product groups through trade partnerships, which aims to maximise sales and profits by satisfying consumer needs” (IGD, 1999, Appendix). The grocery industry has developed an eight-stage category process to guide suppliers and retailers in their category management efforts, from analysis for the category (“Category Assessment”) through to the subsequent joint strategy and tactics planning stages (see Figure 1). By means of this process “the two sets of knowledge and skills are combined to tailor the category offer to the retail outlet in question and its customers” (IGD, 2002) and a “category plan” (Gruen and Shah, 2000) is jointly agreed. Table I summarises the extant literature on category management and highlights the key points of evidence, commentary and criticism contained within this literature. This literature on category management is categorised into articles focused on: empirical research; case study-based descriptions; commentaries; and literature-review based descriptions. Category management has received much press, particularly in practitioner publications (see Table I, group 3), on specialist industry Web sites (e.g. www.ecrnet.org) and at industry conferences. As Table I shows, there is no shortage of descriptive articles, practice guidelines and commentaries on category management, all of it geared to the grocery industry. However, the empirical evidence that has been collected is somewhat limited, and again, all of this is in the grocery sector (e.g. Basuroy et al., 2001; Dhar et al., 2001; Gruen and Shah, 2000; Zenor, 1994). The purpose of this literature review is therefore twofold, and the rest of the section is organised under two headings to reflect these twin aims. The first objective is to further develop the argument advanced in the Introduction that fashion marketers should consider the

Category management

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Figure 1. The category management process

Empirical: practitioner survey Empirical: stage 1, qualitative; and stage 2, testing of conceptual framework Empirical: intervention time series analysis of sales data

Empirical: regression analysis

Empirical: practitioner survey

IGD (1999)

Gruen and Shah (2000)

Basuroy et al. (2001)

Dhar et al. (2002)

IGD (2002)

Empirical: a simulation

Group 1. Empirical research Zenor (1994)

Table I. Category management (CM) literature: theoretical and empirical evidence Type of study

Substantial profit benefit to manufacturer from coordinated CM pricing structure, but depends on level of competition between brands. Impact on retailer and competitors depends on market structure factors Survey results confirm the benefits of CM Underlines the cooperative nature of the process Promotes cross-functional working Brand management/sales conflict affects performance outcomes

Main focus/evidence/CM benefits/drawbacks

(continued)

For retailer: increase in retail prices and category profitability where CM implemented and where interbrand competition is high and consumer store switching is low For manufacturer: lower prices and margins. This signals the need for the trading partners’ co-development of plans if CM is to create a win-win situation For consumer: increase in retail prices calls into question the consumer benefits of CM Account data for 106 major The critical drivers of category performance (e.g. US grocery retail chains in promotion, price, etc.) vary depending upon the role that the 50 Nielsen SCANTRACK the category plays in the portfolio of the retailer and the markets consumer (e.g. staple, niche, variety enhancer, etc.) Suggests future research should investigate the benefits of CM to manufacturers 64 respondents from supplier Survey confirms the benefits of CM and its importance as a and retailer organisations core business strategy for the next decade. Implementation by retailers is the most critical element that is over-looked

120 respondents from supplier and retailer organisations 128 respondents from supplier attendees at 1999 ECR conference and from list of category managers from Food Marketing Institute (FMI) list Aggregate store-level scanner data from two retailers – one deploying CM, the other not

Scanner data applied to a pricing model

Respondents/sample/ publication

812

Author (year)

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Type of study

Respondents/sample/ publication

Commentary Commentary

Harlow (1994)

Richards (1995)

Group 3. Commentary Harris and McPartland (1993) Commentary

Johnson (1999)

Qureshi and Baker (1998)

Johnson and Pinnington (1998)

Number of items stocked might be reduced without consequent negative affect on assortment perceptions and store choice, so long as only low-preference items are eliminated and category space is held constant

Main focus/evidence/CM benefits/drawbacks

Practitioner publication

Academic-practitioner journal

Practitioner publication

(continued)

Defines CM, and identifies category expertise as a “shared resource” Defines CM, describes CM as an evolved form of trade marketing, outlines CM principles and the consequent challenges to companies seeking to implement CM Argues the potential for supplier lock-out when competitors secure category captainships with retailers

Shopper research proved to be the ECR “relationship enabler” Descriptive/mini case studies The clients for the Cites benefits of CM to retailers and suppliers (p. 35), and to demonstrate market commissioned market the benefits to both of operating a trusting trading research techniques for CM research forming the mini relationship case studies were suppliers to Concludes with proposal of how CM-related, ad hoc market the retail sector (UK and research gives the supplier something of value to offer the Greece) trading relationship Mini case study format to A range of in-store market Reports how the supplier gained invaluable in-store report results of market research tools employed with consumer insights for the category from the market research study 1,000+ shoppers research; this would complement their knowledge of the consumer as a “user” of the products Descriptive/mini case studies Examples from various How ad hoc market research can help CM partners acquire to demonstrate market international markets an in-depth understanding of the consumer’s shopping research techniques for CM motivations/behaviour Suppliers benefit from CM when they have agreed with the retailer a “purchase marketing strategy” for the category

Empirical: experiments Study 1: 212 students on six looking at the impact of item shopping trips reduction in a category Study 2: 229 respondents participate in test store Group 2. Descriptive/case study Pearce (1996) Case study Manufacturer

Broniarczyk et al. (1998)

Author (year)

Category management

813

Table I.

Commentary

Commentary

Commentary

Commentary

Commentary Commentary Commentary Commentary

Mathews (1996)

Freedman et al. (1997)

George et al. (1997)

Wellman (1997)

di-Nome (1999)

Dewsnap and Jobber (1999)

Gregory (2001)

Mitchell (2001)

Table I. Type of study

Practitioner publication

Academic-practitioner journal Practitioner publication

Practitioner publication

Practitioner publication

Consultancy publication

Consultancy publication

Practitioner publication

Respondents/sample/ publication

(continued)

Reports the results of a survey of retailers and manufacturers. Noted a maturing of the CM process and use of “consumer insight” to find and leverage common ground in the trading relationship The authors are sceptical that supplier and retailer objectives can ever be aligned, but at this stage (i.e. 1997), “full-blown” CM remains largely untested. US manufacturers underestimate the cost of developing joint category plans; European manufacturers admit to scepticism, with retailer-supplier trust cited as an issue The authors explain the need for functional “integrators” and describe how, in response to increasing consumer and trade customer demands, companies have reorganised their marketing organisations CM “baggage” (i.e. the cumbersome “best practices” templates) makes it unproductive and a barrier to focusing on the consumer. Advocates CM as a “cross-merchandising”/cross-category business model rather than an “organizational business model” Differentiation in CM relies on a greater focus on key consumer insights and on category strategy. Retailer-supplier cooperation and trust are essential Category management is proposed as a “vehicle for integration” between sales and marketing Reports the disenchantment with unwieldy CM processes that deliver undifferentiated plans by store. Advocates more shopper insight as the way forward CM described as a severe disappointment with cumbersome manuals and templates Categories still not being defined by consumer understanding

Main focus/evidence/CM benefits/drawbacks

814

Author (year)

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Commentary

Storey and Benady (2001)

Descriptive

Kotzab (1999)

Joint Industry Report on Efficient Consumer Response (1995) Category Management: The Guinness Guide (1998) ECR Europe (2000)

Group 5. Manuals/guides Nielsen (1992)

Review

Dussart (1998)

Group 4. Descriptive/literature review Hutchins (1997) Commentary

Type of study

Author (year)

Criticises one UK retailer’s CM attempts as insufficiently consumer-centric and insufficiently radical

Main focus/evidence/CM benefits/drawbacks

The Essential Guide to Day-to-Day CM

“Guinness GB take home trade”

Category Management: Positioning Your Organization to Win “Category management report: enhancing consumer value in the grocery industry”

Develops a research agenda for academics “with an interest in supply chain management issues” Academic journal Major pitfall: the consumer does not always benefit from CM. Consumer understanding should be centre-stage Review based on analysis of Distinguishes between textile industry’s Quick Response, secondary statistical data, and grocery industry’s Efficient Consumer Response (ECR) literature review and expert USA and CM-inclusive ECR Europe practices. Discusses interviews ECR background and approaches, and how ECR in USA developed from QR practice in the textile industry. ECR presented a “distribution model” focused not only on “replenishment” but also an “efficient” promotion, new product introduction and assortment. Reports savings offered by the initiatives

Academic journal

Practitioner publication

Respondents/sample/ publication

Category management

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Table I.

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adoption of category management as an extension to their current QR practices, and the second is to highlight research opportunities in the area of category management. Category management as the next generation QR As argued above, category management presents a platform for sustainable competitive advantage based on the ability to market the right products in the right way to meet “the fast changing needs of a highly complex consumer” (Johnson, 1999, p. 260). This relies on retailers sharing transaction data and on suppliers sharing the in-depth knowledge of the consumer that might explain such transaction data. It is suggested in the QR literature that the most “developed” implementation of quick response – stage 3 QR implementation (QRI) – actually includes category management (Giunipero et al., 2001, p. 362; Birtwistle et al., 2003). However, the three items used to measure the stage 3 QRI construct (Giunipero et al., 2001, p. 371) – vendors receive sales data, QR team meets with vendors, and vendors receive stock-out data – do not reflect the consumer centric thrust of the grocery industry’s conceptualisation of category management. Notwithstanding this conceptual discrepancy, research in the fashion industry reveals that implementation of QR to stage 3 is woefully low anyway. A study by the consultants, Kurt Salmon Associates (1997) found that only 10 per cent of the respondents had implemented this third stage of QR, and a more recent UK study found that despite the intervening years, the figure had only risen to 20 per cent (Birtwistle et al., 2003). The impact of QR systems and technologies has been most noticeable on lead-time, inventory reduction and reduced stock-outs (Ko and Kincade, 1997). However, it has been argued that the consequent profit benefits have largely been to the benefit of the retailer, with the suppliers taking on most of the “cost burden” (Hunter and Valentino, 1995; Whiteoak, 1999). Against this background, the notion of retailer-supplier partnerships, and all of the associations of trust, shared information and shared benefits that the word “partnership” conveys, would appear an unrealistic ideal. As Birtwistle et al. (2003) report, “There is still a high level of distrust between supply chain members, which denies one of the fundamental requirements of QR, namely that information should be shared to the benefit of all.” Such a lack of trust could explain the reported low levels of full-scale QR implementation in the textile and apparel industries (Birtwistle et al., 2003; Lowson, 1998; KSA, 1997), and it is this same lack of trust that could explain why category management, which relies so heavily on partnership ideals, has not yet been adopted. This was underlined as follows in a recent research interview with a senior menswear buyer: “We are sharing more information but neither party trusts each other.” Arguably, in order to engage in trading partnerships, retailers and suppliers both have to perceive and/or experience win-win benefits. It is the authors’ contention that the mutual benefits offered by category management partnerships would encourage increased openness between retailers and suppliers. However, the purpose of this study is not to call into question the value of QR to the fashion industry. Indeed, the aspect of category management that focuses on logistics-based “optimal replenishment” concept (IGD, 2002) reflects its QR origins. Rather, this study investigates how the grocery industry’s established category management concept could act as a useful adjunct to fashion marketing’s QR. This view is predicated on the proposition that efficient replenishment does not guarantee

that suppliers and retailers in the fashion industry have a priori effectively marketed the right products. Conversely, category management would enable them to introduce the “right products” to the marketplace, to merchandise and promote them in the right way, and then to enable their efficient replenishment. In its development of ECR, the grocery industry acknowledged that “supply management” and category management was a powerful combination; specifically, that “to reap the full benefits of ECR” category management should be linked to “supply management” (IGD, 1999, p. 13). This paper suggests that the fashion industry should consider doing the same. Research opportunities: the importance of consumer intelligence and joint category planning Johnson (1999) asserts that while electronic point of sale (EPOS) systems provide volume sales data – that is, the “what” of category sales – category management depends on understanding the “why” and “how” of consumer behaviour. These are what the IGD (2002) term “consumer insights”. However, most reports on category management’s shortcomings highlight the grocery industry’s failure to fully deploy the requisite in-depth understanding of the consumer (e.g. Dussart, 1998; Gregory, 2001; Mitchell, 2001; Storey and Benady, 2001; Wellman, 1997) and its related failure to “inspire” the consumer with “improved offerings” (Gruen, 2002). A real understanding of the consumer for a particular category would – it is argued – enable supplier and retailers to adopt radical shifts in the marketing of the category. It would enable them to move beyond “improved efficiency to improved consumer experience”, and beyond “single product-based categories to consumer solutions” (Gruen, 2002, p. 18). Indeed, research by the IGD indicating that category management has a healthy future in the grocery sector (foods and non-foods) could be an acknowledgement that there is much scope to improve existing category management techniques. The collection and analysis of consumer “insights” is a critical part of the stage 3, “category assessment” phase of the category planning process (Figure 1)[1]. Johnson (1999) and Qureshi and Baker (1998) argue a strong case for how a whole range of market research techniques are vital for the collection of the point-of-sale consumer insights and report on market research projects undertaken in the grocery sector to gather insights into the in-store shopping process. To date, however, empirical research has not addressed how consumer insight collected for category management as part of the “category assessment” stage can be applied to the subsequent planning stages of the category management process (the “scorecard”, “strategy” and “tactics” stages in Figure 1). Nor has previous research dealt with how category management can be applied to any non-food, including fashion. This study therefore seeks to fill these research gaps. Before category management, neither retailer nor supplier possessed in-depth knowledge of the consumer’s in-store behaviour. Consumer insight is vital to achieve the aims of category management, but although retailers have access to EPOS data, few have the resources to conduct and/or analyse consumer research at the category level (Johnson, 1999). Potentially the supplier can fill this gap by providing this resource. Although category management is primarily a retail strategy, in their bid to play the “category captain” role it is the manufacturers that have taken the initiative to develop the expertise and the category insight required to support the process (Gruen and Shah, 2000). The key to successful category management is when these two

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complementary sides of the trading relationship work together collaboratively to understand the consumer and to interpret and fulfil their category needs via the joint category planning process (Gruen and Shah, 2000; Harris and McPartland, 1993; IGD, 2002). As Gruen and Shah (2000) found, retailer-supplier continuous involvement in joint category planning positively affects: “retailer system trust” – conceptualised as the retailer’s confidence in the potential benefits of category management plans and in the supplier’s capabilities/delivered information; and the “objectivity” of the category plan. Correspondingly, the study also found that the “objectivity” of the category plan, measured in terms of the plan’s freedom from supplier bias and the extent to which it delivers the consumer perceived best mix of brands and sizes, had a positive effect on category performance. However, “objectivity” describes the nature of the plan rather than its contents/constituents. Therefore, this present study seeks to understand how the consumer intelligence gathered as part of the category assessment process contributes, not to the “nature” of the plan but to its actual “contents”; that is, how the intelligence contributes to the supplier-retailer strategy and tactics planning stages of the category management process. This objective reinforces how the application of consumer intelligence extends the boundaries of empirical category management study. Methodology This section details the methodology employed to achieve the research objectives outlined above. Preliminary discussions with associates in the fashion industry identified the potential for a collaborative investigation with a manufacturer in the intimate apparel sector. The manufacturer, an international brand and its retail customer, a major UK-based apparel retailer operated within the bra category, which represented all bra styles from fashionable/glamour ranges to the more staple, functional basic garments. The particular case scenario indicated that retailer and supplier both lacked fundamental knowledge of the consumer. Retailer category performance implied declining consumer interest and as such, the retailer had recently implemented assortment reduction within the category. Conversely, the supplier reported steady sales performance results from other retailers for the same category. It also presented a situation of low retailer-supplier collaboration with no evidence of joint decision-making. Acknowledging the potential benefits of the research, the manufacturer agreed to sponsor the study. Research design Exploratory research is appropriate when little is known of a phenomenon (Churchill, 1995, p. 149). Previous category management studies in the grocery sector (Johnson and Pinnington, 1998; Johnson, 1999; Qureshi and Baker, 1998) have argued the case for developing quite advanced market research “tools” for understanding how the consumer shops the various categories in the grocery sector; for example, recording point of purchase activity, exit interviews and so on. However, the subject of category management in the fashion sector is as yet unexplored. Furthermore, the research context here is a situation where the intimate apparel industry overall appears to lack fundamental knowledge of the bra consumer. Therefore, while sophisticated in-store techniques may be wholly applicable for a sector that is further advanced in category

management, they may be less appropriate for gathering the required preliminary insights into consumer behaviour for the bra category. The research therefore pursued an in-depth, qualitative approach, the objective of which was to gain greater “insight to consumer beliefs, attitudes and preferences” towards the category (IGD, 2002, p. 164). The structure for the study was provided by a category management research “framework”, adapted from Johnson (1999). The objective of this framework was to understand customer motivations and the impact of point of purchase marketing mix variables. It comprised three key areas of focus: (1) The pre-purchase environment. What influences the consumer’s brand choice before entering the retail store; for example, product and packaging design, advertising, or promotions, brand image/positioning? Why was a specific retailer chosen? (2) The consumer purchase process. What are the consumer’s need states driving the purchase? Was the purchase planned or impulse and why? Where is the purchase decision made? How is the category shopped? (3) The in-store purchase environment. What are the in-store dynamics – that is, the in-store variables that influence the consumer purchase process – for example, availability, assortment variety, visual merchandising, category location/layout, shelf allocation, service support, in-store promotions? Data collection methods Focus groups provide a versatile medium for generating rich research insights (Fern, 1982; Goldman, 1962). Furthermore, in category management research, focus groups have generated greater depth to support retail sales and panel data. They have also been adopted to facilitate the category definition process, to understand category purchase modes (Johnson, 1999), and category usage, and to identify new product opportunities (IGD, 2002). A combination of four data collection methods was used, each selected to answer the research questions within the three areas of the adapted Johnson framework. This is represented diagrammatically in Figure 2. To stimulate discussion of the pre-purchase environment, and specifically to reveal consumer’s perceptions of the leading brands in the category, the research deployed a word association exercise. This was designed to determine the extent to which brands were associated with established criteria of fit, comfort, style, quality and price (Mintel Marketing Intelligence, 1997). Eight different bra brands were selected to represent the category including, respectively, Berlei, BHS, Warner’s, Marks & Spencer (M&S), Triumph, Littlewoods, Gossard and Playtex. To counter the risk of peer contamination, individual perceptions were captured on paper prior to general group discussion. Each respondent was requested to insert against each bra brand any number of words or phrases that could be used to describe that brand. A pre-test revealed that many respondents had difficulty in generating their own words. Thus, from interviewing a number of bra wearers a list of 40 positive and negative descriptors was compiled to which respondents could refer if required. This controlled response process (Chisnall, 1992, p. 162) lasted approximately ten minutes. The second part involved a semi-structured open discussion designed to explore the consumer purchase process and the in-store purchase environment. This included

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Figure 2. Data collection methods

questions on usage and bra buying history and also probing on preferences with respect to in-store variables; for example, merchandising/display and in-store selling activity. Third, the research used a “blind” experiment to further explore the pre-purchase environment and brand perceptions, and to understand the consumer’s design preferences. For this exercise, each respondent evaluated on paper a diverse selection of seven unbranded garments representing the category. The evaluation criteria included product design, perceived price, brand and function. Respondents were also asked to indicate the likelihood of their purchasing each individual garment. The final method of data collection was another open, semi-structured group discussion. Due to the potentially sensitive nature of intimate apparel, this part of the study explored bra buyer behaviour from the third person perspective. This involved the use of projective techniques with the unbranded garments used as prompts (Haire, 1950). These combined methods of data collection offered the opportunity for synergistic outcomes (DeLorme and Reid, 1999) and for triangulation of the data (Denzin, 1978). In total, each four-stage focus group lasted on average ninety minutes. A neutral environment was chosen in which to host the focus groups; avoiding the stimulation and distraction within one specific retail setting broadened the discussion to cover the retail environment in general for the category. This also further supported the exploratory nature of the study.

Sample A stratified sample was designed to include six focus groups across a range of ages and bra sizes. Using a recruiting questionnaire, Market Research Society-trained interviewers screened and recruited forty-eight respondents to participate in the study. In order to reduce the potential for sample bias (Sudman and Blair, 1999), the focus groups were recruited and conducted in three separate locations within the Midlands and the South East of England. An independent Market Research Society moderator, selected for compatibility with the respondents, directed the focus groups. Data management Both the word association exercise and blind experiment were completed on paper. For the former, individual comments provided against each brand name were then analysed and scored either positively or negatively for six criteria of fit, comfort, attractiveness, price, quality and a “no response” that indicated low brand awareness. For example, comments such as “dull” but “good value” would score a negative point for attractiveness and a positive point for price, whereas “glamorous” and “pricey” would score the opposite. The number of positive/negative frequencies scored for each brand were then calculated. In respect of the blind experiment, the mean scores for each garment style were calculated against the evaluation criteria described above. Each focus group was tape recorded during the open group discussion sections. The tapes were then transcribed. All of the data was then analysed following the three key activities of data reduction, data display and conclusion drawing (Miles and Huberman, 1994). Following the strategy advised by Miles and Huberman (1994) a combination of within- and cross-case analysis was undertaken. The within-case analysis generated insights into why certain behaviours, phenomena and situations existed for a particular focus group. Cross-case comparisons were then conducted in order to provide insights into how issues relating to consumer behaviour for the category varied from one focus group to another. The combination of data collection methods outlined above generated a considerable amount of data. For conciseness, the results reported below represent a synthesis of these data. Findings A key objective of this research was to explore how the fashion industry might use “consumer insights” to inform supplier-retailer category management relationships, and in so doing, to ascertain whether the industry might usefully deploy category management. Discussion on how the industry might apply the collected insight to specific steps of the category management process is covered in the next section. This current section presents the insights, structured in line with the category research framework outlined above. The pre-purchase environment In analysing the word association exercise it was apparent that the respondents held strong attitudes towards the eight listed brands. The findings illustrated in Figure 3 visually depict the respondents’ positive and negative perceptions of each brand. (For each brand the score reflects the difference between the respective positive and negative responses.) These indicate that from past experience, in terms of market

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Figure 3. Consumer brand perceptions: the difference between positive and negative responses

positioning, shoppers had formed distinct profiles of competing brands. From the mere mention of a brand name, respondents were immediately able to describe the brand’s relative positioning. Not surprisingly, for the market leader, M&S, the balance of responses was positive for all criteria. In addition, half of the respondents made an unprompted association between M&S and “quality”. No other brand achieved this same consistent, positive ratings balance for all criteria: excellent scores on one criteria were always counterbalanced by significant negative scores on another. For example, Gossard achieved the highest score for attractiveness, but scored one of the lowest for perceived fit. Similarly, the Playtex brand achieved the highest mention for fit, but was negatively rated for attractiveness. Further, economy store brands BHS and Littlewoods, while scoring positively for price, were negatively scored for fit, attractiveness and quality. Warner’s scored the highest number of “no response”, which indicated a very low brand awareness. The general group discussion generated additional insights regarding the pre-purchase environment. Surprisingly, given the high levels of brand awareness demonstrated above, respondents admitted to low brand loyalty – both for own label and manufacturer brands. Discontinuation of styles was a key complaint: “I liked the one I had. I buy one and I like it, and then I find that they’ve stopped doing it. Or they change the range”. “The big mistake is that they don’t keep the range for long enough. They turn it over too quickly”. “Every season, change; out goes the one that you’re familiar with”. The lack of size consistency both inter- and intra- brand also inhibited brand loyalty: “You can buy one bra, even two bras from the same manufacturer, and although it says it’s the same size on the packet, they don’t fit the same”. Overall, difficulties encountered finding a well-fitting garment were seen as major obstacles to brand loyalty. Conversely, style loyalty featured strongly; once respondents had found a style that they were happy with, they would continue buying it until it was no longer available: “I’ve got about four or five bras all the same style. I don’t know what I’m going to do if they stop doing it to be honest”. “It’s a problem when manufacturers change a design and they’re no longer available”. Furthermore, with respect to choice of store the consumer admitted to a tendency to store loyalty. The consumer will patronise those stores that they have found offer depth of range, size availability and specialist fitting advice, and unlike other apparel categories respondents expressed a clear preference for independent, specialist retail stores. The blind test experiment illustrated that the respondents had developed very clear design preferences. Through trial and error they had developed a set of decision rules for achieving fit and comfort. The first decision was often between non-wired versus underwired bras, whereby non-wired provided greater comfort and underwired offered greater support in more attractive designs. Fibre content was a strong consideration with respondents generally preferring natural fibres. Individual design elements prompted instant reaction. For example, the position of seams had been found to cause irritation. Likewise, depth of underband and the width and position of straps conveyed the degree of support. Collectively, the combination of salient features, fabric design and shape experienced in the past provided a quick formula for assessing the potential suitability of a new purchase. Such was the extent of their accumulated knowledge and experience of a garment’s styling that most respondents could quickly evaluate the suitability of a garment without the need for trying-on. This was an important consideration given the perception of queues and customer service in chain stores: “I do

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find with X that it’s hard to try them on. I know they have changing rooms but there are long queues”. With respect to quality, respondents had clear expectations of fabric performance, and due to the supporting nature of the garment could detect subtle changes in function and durability: “I’ve bought a few from there (chain store) over the last year or so and they’ve not been as comfortable for whatever reason. I’ve started going elsewhere”. “I felt that they’ve changed manufacturer. The quality of another favourite one went down and that’s when the elastic went and it shouldn’t have.” The consumer purchase process The majority of the respondents described how they are initially prompted into the bra purchase process by a variety of “need states” (Johnson, 1999). These include the garment’s loss of functional support through deterioration of elasticity, the decline in the garment’s aesthetic appearance, a change in the wearer’s own physiology driving the need to buy a different bra size or the seasonal factor of holidays prompting product replacement; “Holidays spur me on, so if I have one holiday a year then I’d buy annually . . . if I’m packing things I look and I think ‘that looks awful’. Or that doesn’t go with certain items I’d be wearing”. For some, the prompt to purchase is linked to the hedonic value (Laurent and Kapferer, 1985) of “pretty” bras; in the case of the respondents in this study, the hedonism stemmed from the way in which “pretty” bras are associated with “pleasing someone else”, and further, how the wearing of them is seen as a treat or reward: “It makes you feel special, really spoiling yourself”. In terms of the number of wear-occasions adopted by the bra consumer, the respondents in the study presented a range of consumer typologies, from the preference for only one bra type – “I’ve got four or five now that I wear on the go . . . they go universal if you like” – to three-style bra wardrobe: “three (bra wardrobes) in my case. One sports, one ordinary, one special occasion . . .”. The most popular preference was for two different types of bra, one type for functional everyday use and another purely for evenings: “I just have a medium support, fairly plain bra for daytime and then I’ve got fancier stuff for the evening”. Despite the invisible nature of the garment, there was a clear distinction between home and social use: “I have bras for work and bras for round the house”. Comfort was an important factor and some women relegated older garments for daytime use: “. . . old ones that I wear in the day and nice ones for evening”. “I wear the old ones for gardening – it’s a comfort one”. However, discomfort was suffered for social occasions: “When you go out at night you tend to wear something that’s not as comfortable – like we all squeeze ourselves into high heel shoes because they look good.” Consistent with the behavioural implications of the high involvement profile for bras first uncovered by Laurent and Kapferer (1985), the information search for bras was described in this present study as both critical and extensive. In light of the consumer’s wide experience of the product, combined with the frequency with which bras are replaced in her wardrobe, it is surprising that women find it necessary to undertake an extensive search for each new bra purchase. This may be attributed to the reported over-frequent discontinuation of styles and the lack of size-consistency offered by the competing manufacturers. Together these increase the consumer’s perceived risk and so drive the need for her to restart the search process for each new bra purchase. Significantly, only a third of the respondents considered the actual process of shopping for a bra to be a positive, enjoyable experience. The majority found

the experience “a nightmare”, “frustrating”, “boring”, “a necessary evil”, “traumatic”. The main reasons for not enjoying the experience was the lack of attractive bras in larger sizes (“Bras for the more fuller lady are very boring, old fashioned”), lack of choice in general, difficulty in finding garments in stock, and the difficulties encountered in finding bras that offer fit, comfort and the right body shape through clothes. On average and depending on the quality of the bras and how long they lasted, the respondents in this study claimed to buy a bra three to four times a year. Further, to counter the risk of obsolescence consumers tend to buy in bulk when the product is available. Availability of the preferred bra style is one of the key factors influencing purchase. Given the importance of comfort and fit, substitution is rarely an option in bra purchasing. Owing to the problems of limited availability of styles and sizes and product obsolescence, the majority of the women categorised themselves as convenience shoppers, buying a bra, not because they need one, but because one is available for purchase: “If I see a nice one I think ‘there’s my size, I’ll buy it’, not because I really need it. It saves me, when I do need one, having to go and hunt for one”. In this way purchase is prompted by the marketing stimulus of an in-stock situation, and underlines how practitioners can stimulate purchase just by having an item available. In terms of the number of bra purchases, the majority of the women bought at least two bras at a time, though it is notable that some respondents claimed they bought three or more at once. An alternative approach was to buy one bra, try it on at home, wear it and wash it, then return to buy another exactly the same or in a variety of colours. This propensity to repeat purchase and to possess multiple copies of the same garment is arguably quite unique to the bra, and it further underlines the way in which the consumer is motivated first and foremost by functionality and physiology, and then by the fear that the manufacturer and/or retailer may discontinue their preferred style. It is significant that the majority of women prefer to shop alone for bras. This contrasts sharply with the preferred social interaction associated with other fashion categories, where “the customers comparison to referent others appears to be of paramount importance” (Dodd et al., 1998) and underlines the personal, intimate nature of the category. The in-store purchase environment The issue of store loyalty founded on depth of range, size availability and specialist advice has been highlighted above. Overall, the chain stores were seen as offering less choice: “It’s a shame because there used to be such a big range and there isn’t. All you see is 45 of the same one”. By contrast, the specialist lingerie stores were perceived to offer a greater variety of styles and depth of assortment to cater for a wider market: “I take my two daughters to get their bras there (specialist store) as well because they have special sizes and will order anything for you”. With respect to the issue of specialist advice an important theme to emerge from nearly half of the respondents was the need to be correctly measured and fitted for a bra: “If I find a shop that I like and I tend to keep going back there. I go to Xs now because they measure me properly”. As many respondents admitted to not knowing their correct size, they relied in part on trial and error and were therefore unsuccessful in self-selecting appropriately sized

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garments. One-fifth of respondents reported disillusionment caused by being incorrectly measured in the past, with a noted difference between sizes recommended by different retailers. Once again this increases the perceived risk associated with the probability of a mis-purchase. The perceived variation in fitting and measuring services, combined with the inherent size variation between manufacturers and even within the same brand, present substantial obstacles to the bra buyer. Seeking to overcome such barriers to successful purchase, over a third of respondents underlined the importance of the type of in-store advice associated with the specialist lingerie retailer as opposed to a generalist chain store. “I prefer a specialist shop – because there’s usually someone there who specialises . . . knows what they’re talking about”. Surprisingly, over half of the respondents considered price to be less important than fit, comfort, value and quality: “If I see a nice one I don’t even look at the price. If I think it’s going to fit, it’s going to serve its purpose and I like it, I’ll try it on and then look at the price”. “I think you get what you pay for – I used to buy cheap bras but they don’t fit properly”. Some women believed the function and shape achieved by the bra to be most critical: “If it made the best of what I’d got it would be worth any amount of money”. Furthermore, women could also be tempted to pay more for a special occasion or special purpose bra: “If I’ve seen something I’ve liked I’ve pushed the boat out because it was for a special occasion.” “I do quite a lot of sport so you need a good fitting sports bra, and you’re always prepared to pay a lot for that”. On the subject of category merchandising the respondents were equally split in their views towards different types of display. Half preferred to see bras displayed on hangers, mainly so that they could be more easily viewed and handled; the other half – on the basis of being able to more easily select the required size – expressed a preference for bras to be merchandised in boxes bearing a photograph of the garment, with just one unboxed item of each style on display at the fixture: “If I go to X and get one, they’re in boxes with a photograph of somebody wearing it, I know what they look like and I haven’t got to rake through – I just grab one in my size and go”. Regarding category adjacency – respondents outlined their preference for intimate apparel departments to be separated from both general apparel and more importantly, from menswear: “I wouldn’t want to be looking at my bras when the men are walking through as a short cut to somewhere else.” Discussion and managerial implications As outlined in the Methodology, the context for this present study was a situation where in the absence of retailer-supplier collaborative working, the retailer was making product range decisions that sub-optimised its sales. The supplier was also suffering suppressed sales for this particular category compared with its other accounts. Perhaps worst of all, the consumer was receiving much frustration in thwarted attempts to seek a solution to her consumer needs. Category management provides a focused, in-depth collaborative retailer-supplier approach to: defining the category and agreeing its role; devising category strategy; and formulating tactics for implementing the strategy. As a preliminary investigation, the objective was not to collect data specifically for the purpose of working through the entire category management process (Figure 1). Rather, it was to consider how – in theory – consumer research findings could inform a category management process for a product category in the

fashion sector. Accordingly, the results presented above are now discussed in the context of the relevant stages of the category management process. Category definition The bra market spans a range of garments, from styles that could be described as utilitarian/functional to the more glamour/special occasion. The research indicated that consumers seek a particular garment based on usage occasion and corresponding base need; for example, comfort for everyday use or glamour for evening wear. These results represent a marked contrast with the retailer’s more simplistic and potentially misleading, product-based view of bra categories, which are based – not on consumer needs or motivations – but on bust size and/or bra construction (e.g. wired versus non-wired). There is a strong case for suggesting that the retailer’s narrow definition of bra categories is driving their under-performance; correspondingly, better knowledge of the consumer’s usage behaviour and motivations might facilitate better category definition. For example, further consumer insights about the range of bra wardrobes could inform the definition of a greater number of bra categories or, more creatively, the intelligence could be combined with that from other categories to create new categories. For instance, there may be scope for the creation of a completely new category based on “special occasions” in which a range of traditional product groupings (underwear, outerwear, accessories) could be marketed together. It is quite feasible to propose that the category management process could lead to a similar re-definition of other fashion categories. Category role and category strategy Category management provides a framework for retail and supply partners to jointly agree the role/business aims of the category and to plan and develop category strategy (see Figure 1). The results of this study provide initial evidence of how shared consumer insight can highlight opportunities for category growth and therefore, the opportunity for jointly developing long-term category strategy for the categories identified. For instance, in the case of the present research the identification above of a greater number of wear-occasion related bra categories, would offer the opportunity to significantly grow the market. The identification of the different categories could also help the retailer understand the “role” of the particular category to their business. For example, the agreed role of the glamour/special occasion bra category as a “variety enhancer” or “occasional/seasonal” category (Dhar et al., 2001; Hoch, 2002) could be to generate excitement in-store. Conversely, the “everyday”/functional bra category could be designated a “destination” or “staples” category (Dhar et al., 2001; Hoch, 2002), the strategy of which would be to guarantee a level of in-store traffic for driving revenue in other categories. These same principles would apply equally to other categories of apparel. Further, this consumer research identified the importance of in-store bra fitting/advice services. If customer service is central to a retailer’s positioning, the subsequent strategy for at least one of their bra categories could be for that category to enhance the store image through this service provision. Category tactics In terms of implementing the strategy developed, the category management framework highlights a set of “improvement concepts” (IGD, 1999, 2002). These

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equate to a detailed operationalisation of the “category tactics” stage 6 (Basuroy et al., 2001) of the category management process (Figure 1) and are discussed below in the context of the study’s findings. Optimal assortment. Optimal assortment or range is concerned with maximising profitability through the effective use of store space and stock. As such, it is concerned with offering a range or mix of products and individual stock keeping units (SKUs) that balance inventory costs and consumer needs. Based on the high number of SKUs required to cater for the different shapes and sizes of women, bra categories pose a particular challenge to managing assortment. Typically up to 60 different sizes are stocked in a range of colours across a variety of styles. The most relevant insight for assortment decisions provided by this research is the identification of usage-related bra categories (see above). Broniarczyk et al. (1998) found that so long as only “low-preference” items are eliminated from a retailer’s assortment and that category space is held constant, retailers might be able to significantly reduce the number of items without negatively affecting assortment perceptions and store choice. The findings of this present study indicate that by reducing the variety and number of SKUs within the more functional bra category, the consumer perceived the retailer to be less effective in meeting their needs, with the obvious net result of a loss of consumer loyalty. Optimal new products. Hines (2001) identifies the timing of partner involvement in the product development process as an important dimension in retailer-supplier partnerships. Category management’s optimal new products “improvement concept” (IGD, 1999) deals with the development of new products to target specific consumer/shopper needs. It assumes that to efficiently manage the roll-out of new products and the phasing of the old, the retailer draws on the supplier’s intimate and up-to-date knowledge of the consumer. The UK’s Department of Trade and Industry (DTI) analysis of the retail sector (DTI, 2003, p. 51) reports how market growth is being driven by the shortening of fashion cycles; for example, the movement away from “four seasons” to more frequent product range changes. Yet, as the present research demonstrates, in order to reflect consumer needs, new product development strategy for bras has to recognise the function-glamour dichotomy. The fashion industry has developed QR processes that respond quickly to retail sales data: replenishing the successful styles and delisting the un-successful. However, these may be too responsive for some apparel categories, allowing insufficient time for consumers to evaluate the garment before they wish to return to the store to repeat purchase. With respect to the bra category, the consumer may not expect to repeat purchase “special occasion” bra ranges (for example, garments for social evening wear in fashion colourways), but she does expect to be allowed enough time to evaluate new, “functional” bra ranges (for example, bras for everyday use). Across all fashion categories, for this type of product manufacturers and retailers cannot afford to subject the consumer to risk each time they approach the decision process. For the more functional bra category too much innovation may be counterproductive to customer retention. Successful new product strategy and the associated decision on the timing of range additions/deletions must therefore be based on a sound knowledge of consumer perceived risk for the different subcategories that constitute a retail category.

Consumers in the present study described how the lack of consistency across manufacturer sizes presents a distinct obstacle to purchase. In terms of product development, this highlights a clear opportunity for retailers and manufacturers to work together to achieve industry-wide standardisation in sizes, perhaps via new technology in body scanning (DTI, 2003). Conceivably, this partnership approach on garment sizing would apply to other apparel categories. Optimal promotion. Traditionally, the level of above-the-line promotional activity for the total intimate apparel sector has been low (Mintel Marketing Intelligence, 1997). This study showed that through the shopping and wear experience the consumer had developed an acute sense of the competing brands’ market positioning. This included both strong positive and negative brand perceptions. This presents a clear opportunity for the industry to invest in communications to support the manufacturer’s desired positioning. Within the literature the “optimal promotion” concept deals exclusively with sales promotions designed to stimulate sales and to create in-store excitement (e.g. IGD, 1999; Dhar et al., 2001). The consumer’s perceived risk of obsolescence, combined with her experience of product non-availability, drive the consumer to bulk-purchase. The study findings indicate, then, that retailers do not have a problem with encouraging customers to buy, so long as they have the items available for purchase. Accordingly, the scope of the “optimal promotion” concept has been widened to consider the research’s implications for “in-store promotion” and “communications” overall (Johnson, 1999, p. 263). As outlined above, many consumers perceive the bra purchase as high-risk. Consumers therefore value in-store measurement and fitting services. However, these services had proved unreliable in some cases with a fifth of respondents reporting having been incorrectly measured in the past. These findings underline the importance of in-store personal selling and highlight the potential for retail and supply partners to work together to improve the specialist fitting skills of their sales personnel. With regard to repeat purchases, and in cases where disposable income is limited, consumers outlined their strategy to return to repeat purchase rather than buying multiple copies upfront. This is due to their strong belief that a bra cannot be judged for comfort and fit until it has been worn and washed, and represents an additional factor for the consumer to see the category as high-risk. With regard to communication strategy, this is a cue for the retailer, with support from their supplier partner, to re-design their selling and warranty policies to include the promise of reimbursement in cases of poor post-wash fitting. Optimal replenishment. It is noted earlier that the “efficient replenishment” strategy from ECR bears a strong resemblance to the quick response concept, and that the three demand/consumer-oriented aspects of ECR (the category management “tactics” discussed previously) offer a complement to quick response. Theoretically, then, category management does not include consideration of replenishment issues. However, the IGD’s (1999) inclusion of the “optimal replenishment” factor in their description of category management could signify that these demand-based and replenishment-based concepts are indeed complements of each other. For this reason, the logistics-based findings from the research are included here. Product non-availability through obsolescence or stock-outs was seen as a significant obstacle to purchase. Fearing non-availability, the bra consumer bulk buys

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items when they are available. This signals the need for the retailer-supplier partnership to improve their logistics processes to include improved forecasting competence and more appropriate inventory policies. However, the key criterion from a category management perspective is that the corresponding QR replenishment strategies reflect the identified category differences, with the more functional/basic SKUs attracting much higher expectations of stock availability. Supporting Fisher’s (1997) view that innovative and functional products demand a different type of logistics “response”, consumers value availability on more functional styles and expect them to be repeatable. They do not expect these products to be treated as high-fashion items that are introduced and then quickly deleted from the retailer’s assortment. Arguably this finding would apply to any apparel category that incorporates basic and fashion merchandise. Conclusions and research next steps The empirical literature on category management (Basuroy et al., 2001; Dhar et al., 2001; Gruen and Shah, 2000) focuses exclusively on food categories within the grocery industry and indicates that in this sector category management still faces significant development. Further, although this literature reports on the gathering of consumer insight for particular categories, it does not seek to apply these to the category management process (e.g. Basuroy et al., 2001). The value of this study has therefore been to demonstrate: how category management might offer significant benefits to fashion marketing; and how consumer insights for the fashion industry can be applied to the category management process. As the name suggests, the category management process focuses on a particular “category”, in this case the bra category. However, as outlined in the previous discussion of results, there is good reason to suggest that the model is generalisable to other fashion sectors. The present paper argues that for the fashion industry category management would be complementary to quick response (QR) strategies. As such, the real value of any insight gathered for category management is in combining it with the retailer’s sales data used in QR. Additional value comes from demonstrating how the combination of retailer-supplier information aids joint category planning efforts and, overall, supports the partnership approach which to date is largely missing from the fashion industry’s attempts at QR. For example, in this particular study, without the consumer insight the retailer assumed that falling sales were due to a declining category. Conversely, with the insight to hand, both parties in the trading relationship learn that declining sales are the result of not meeting the customer’s category needs. They both gain invaluable intelligence to use in their efforts to jointly agree the strategy and tactics for the subsequently identified categories. The survey findings in the IGD (2002) report indicate that 96 per cent of the study’s respondents were confident that category management would be a “core business strategy” for the next decade. The authors of this report indicate that category management could be usefully transferred to other non-food sectors: “Category management evolution is not complete . . . Non food retailers and providers throughout the supply chain desire the success gained in the grocery business” (IGD, 2002, p. 220). The inference from this report is that category management has still to be adopted in non-foods, and as outlined earlier, although fashion is now a key part of some grocery retailers’ assortment, they have yet to adopt category management for their fashion

ranges. The category management implementation issues that food suppliers have experienced at store level and the cumbersome category management process manuals (see Table I, e.g. Gregory, 2001; IGD, 2002) could explain why the grocery sector has not moved on to implement category management in their non-food sectors. In addition, the interviews with key informants highlighted how the fashion and grocery sides of the retailer’s business operate autonomously, with limited sharing of best practice. Several opportunities for future research spring from the results of this study. In their investigation into the antecedents and consequences of category planning and implementation, Gruen and Shah (2000) found that “category plan objectivity” positively affects “category performance”. This present research has shown how consumer insight can be used to create the category plan itself, and arguably the better the contents of the plan (which could be termed plan “quality”), the better the category performance. This offers the opportunity for future research to test the Gruen and Shah (2000) framework, expanded to include this category plan “quality” construct. As an exploratory study on one product category, the objective of this research was to provide preliminary insights. The research design therefore limits the researchers to drawing anything other than tentative conclusions about how category management could benefit the fashion industry overall. In addition, in terms of obstacles to category management’s transferability to fashion, it is conceivable that a demand- and consumer insight-led category management process that works for grocery products with more stable demand patterns is inappropriate for more supply-led, high fashion ranges. Therefore, in order to enable more definitive conclusions, a key research next step should be to investigate its applicability in all fashion sectors and its relative applicability in categories that span all degrees of exposure to the “fashion cycle” (Ko and Kincade, 2000). Following Ko and Kincade (2000) these could be represented by four categories as follows: highly fashionable; fashionable; fashionable and basic; and basic. Further, category management relies on detailed information on the consumer’s in-store behaviour. Therefore, as a study of consumer behaviour overall, the corresponding lack of specific in-store insights collected in this research represents a limiting factor. Any future research on category management in the fashion industry should therefore employ the wide range of in-store market research techniques described by Johnson (1999) and Qureshi and Baker (1998). This exploratory research presents early evidence that category management could offer distinct opportunities for retailers and suppliers in the fashion industry to work together to generate sustainable competitive advantage. However, the concept has not been without its critics (e.g. di-Nome, 1999; Gregory, 2001; Mitchell, 2001). Most of the criticism surrounds the cumbersome nature of the manuals and templates supporting the eight-stage process (Figure 1), the over-complexity of the data produced, and its consequent inability to highlight the key, consumer insights that are so central to the process. Acknowledging these barriers to implementation, the grocery sector has streamlined the category management process (ECR Europe, 2000). In implementing category management, the fashion industry can therefore learn from the experience of other sectors. For example, the industry would be advised to be more flexible and pragmatic in applying what would seem like an inflexible process (IGD, 2002). Indeed as the IGD report points out, “non food retailers . . . will take learnings from existing practitioners in order to create bespoke processes to suit their markets” (IGD, 2002,

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p. 220). This suggests an additional and final avenue for future research. Studies designed to apply the process to different sectors of apparel would identify: the relevance of the process to the fashion industry; the industry’s scope for flexibility in applying the process; and how the process can best be applied within the sector.

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Note 1. The other areas for “assessment” are market, retailer and supplier (IGD, 2002).

References Basuroy, S., Mantrala, M.K. and Walters, R.G. (2001), “The impact of category management on retailer prices and performance: theory and evidence”, Journal of Marketing, Vol. 65, October, pp. 16-32. Birtwistle, G., Siddiqui, N. and Fiorito, S.S. (2003), “Quick response: perceptions of UK fashion retailers”, International Journal of Retail & Distribution Management, Vol. 31 No. 2, pp. 118-28. Broniarczyk, S.M., Hoyer, W.D. and McAlister, L. (1998), “Consumers’ perceptions of the assortment offered in a grocery category: the impact of item reduction”, Journal of Marketing Research, Vol. 35, May, pp. 166-76. Category Management: The Guinness Guide (1998), “Guinness Great Britain take-home trade”, (Note: this is a proprietary Guinness publication). Chisnall, P.M. (1992), Marketing Research, 4th ed., McGraw-Hill, London. Churchill, G.A. Jr (1995), Marketing Research: Methodological Foundations, The Dryden Press, Fort Worth, TX. DeLorme, D.E. and Reid, L.N. (1999), “Moviegoers’ experiences and interpretations of brands in films revisited”, Journal of Advertising, Vol. 28 No. 2, pp. 71-95. Denzin, N.K. (1978), The Research Act: A Theoretical Introduction to Sociological Methods, Aldine, Chicago, IL. Dewsnap, B. and Jobber, D. (1999), “Category management: a vehicle for integration between sales and marketing”, The Journal of Brand Management, Vol. 6, pp. 380-92. Dhar, S.K., Hoch, S.J. and Kumar, N. (2001), “Effective category management depends on the role of the category”, Journal of Retailing, Vol. 77, pp. 165-84. di-Nome, T. (1999), “Category micro-management?”, Supermarket Business, Best of Class Supplement, pp. 3-6. Dodd, C.A., Clarke, I. and Kirkup, M.H. (1998), “Camera observations of customer behaviours in fashion retailing: methodological propositions”, International Journal of Retail & Distribution Management, Vol. 26 No. 8, pp. 311-17. DTI (2003), “Competitive analysis of the retail sector in the UK”, report submitted to The Department of Trade and Industry, Tender CGS, 1239, London. Dussart, C. (1998), “Category management: strengths, limits and developments”, European Management Journal, Vol. 16 No. 1, pp. 50-62. ECR Europe (2000), The Essential Guide to Day-to-Day CM, ECR Europe, Cologne. Fern, E.F. (1982), “The use of focus groups for idea generation: the effects of group size, acquaintanceship, and moderator on response quantity and quality”, Journal of Marketing Research, Vol. 9, February, pp. 1-13.

Fiorito, S.S., May, E.G. and Straughn, K. (1995), “Quick response in retailing: components and implementation”, International Journal of Retail & Distribution Management, Vol. 23 No. 5, pp. 12-21. Fisher, M. (1997), “What is the right supply chain for your product?”, Harvard Business Review, March/April, pp. 106-16. Freedman, P.M., Reyner, M. and Tochtermann, T. (1997), “European category management: look before you leap”, The McKinsey Quarterly, No. 1, pp. 156-64. George, M., Freeling, A. and Court, D. (1997), “Reinventing the marketing organization”, McKinsey Quarterly, No. 4, pp. 43-62. Giunipero, L.C., Fiorito, S.S., Pearcy, D.H. and Dandeo, L. (2001), “The impact of vendor incentives on quick response”, The International Review of Retail, Distribution and Consumer Research, Vol. 11 No. 4, pp. 359-76. Goldman, A.E. (1962), “The group depth interview”, Journal of Marketing, Vol. 26. Gregory, H. (2001), “Hard road, great ideal”, The Grocer, November 3, pp. 40-1. Gruen, T.W. (2002), “The evolution of category management”, ECR Journal, Vol. 2 No. 1, p. 17. Gruen, T.W. and Shah, R.H. (2000), “Determinants and outcomes of plan objectivity and implementation in category management relationships”, Journal of Retailing, Vol. 76 No. 4, pp. 483-510. Haire, M. (1950), “Projective techniques in marketing research”, Journal of Marketing, Vol. 14, pp. 649-56. Harlow, P. (1994), “Category management: a new era in FMCG buyer-supplier relationships”, Journal of Brand Management, Vol. 2 No. 5, pp. 289-95. Harris, B. and McPartland, M. (1993), “Category management defined: what it is and why it works”, Progressive Grocer, Vol. 72 No. 9, pp. 5-11. Hines, T. (2001), “From analogue to digital supply chains: implications for fashion marketing”, in Hines, T. and Bruce, M. (Eds), Fashion Marketing: Contemporary Issues, Butterworth-Heinemann, Oxford, pp. 1-47. Hoch, S.J. (2002), “How effective is category management?”, ECR Journal, Vol. 2 No. 1, p. 26. Hunter, N.A. and Valentino, P. (1995), “Quick response: ten years later”, International Journal of Clothing and Science and Technology, Vol. 7 No. 4, pp. 30-40. Hutchins, R. (1997), “Category management in the food industry: a research agenda”, British Food Journal, Vol. 99 No. 5, pp. 177-80. Institute of Grocery Distribution (1999), Category Management in Action, IGD, Watford. Institute of Grocery Distribution (2002), Category Management: Which Way Now? Debate, Evolution and Future Destination, IGD, Watford. Johnson, M. (1999), “From understanding consumer behaviour to testing category strategies”, Journal of the Market Research Society, Vol. 41 No. 3, pp. 259-88. Johnson, M. and Pinnington, D. (1998), “Supporting the category management challenge: how research can contribute”, Journal of Market Research Society, Vol. 40 No. 1, pp. 33-53. Joint Industry Report on Efficient Consumer Response (1995), “Category management report: enhancing consumer value in the grocery industry”, Category Management Subcommittee, ECR Best Practices Operating Committee and The Partnering Group, Inc., Washington, DC. Ko, E. and Kincade, D. (1997), “The impact of quick response technologies on retailer store attributes”, International Journal of Retail & Distribution Management, Vol. 25 No. 2, pp. 90-8.

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Ko, E. and Kincade, D. (2000), “Impact of business type upon the adoption of quick response technologies: the apparel industry experience”, International Journal of Operations & Production Management, Vol. 20 No. 9, pp. 1093-111. Kotzab, H. (1999), “Improving supply chain performance by efficient consumer response? A critical comparison of existing ECR approaches”, Journal of Business and Industrial Marketing, Vol. 14 No. 5/6, pp. 364-77. Kurt Salmon Associates (1997), Quick Response: Meeting Customer Need, Kurt Salmon Associates, Atlanta, GA. Laurent, G. and Kapferer, J. (1985), “Measuring consumer involvement profiles”, Journal of Marketing Research, Vol. 22, pp. 41-53. Lowson, B. (1998), Quick Response for SMEs: A Feasibility Study, Textile Institute, Manchester. Mathews, R. (1996), “Category management grows up”, Progressive Grocer, November, pp. 79-81. Miles, M.B. and Huberman, A.M. (1994), Qualitative Data Analysis, Sage, Beverly Hills, CA. Mintel Marketing Intelligence (1997), Bras and Pants, November, Mintel International Group Limited, London. Mitchell, A. (2001), “Category management was too expensive and remote from consumers”, The Grocer, February 1, p. 31. Nielsen, A.C. (1992), Category Management: Positioning Your Organization to Win, NTC Business Books, Chicago, IL. Pearce, A.M. (1996), “Efficient consumer response: managing the supply chain for ‘ultimate’ consumer satisfaction”, Supply Chain Management, Vol. 1 No. 2, pp. 11-14. Qureshi, B. and Baker, J. (1998), “Category management and effective consumer response: the role of market research”, Marketing and Research Today, February, pp. 23-31. Richards, A. (1995), “Supermarket superpowers”, Marketing, August 10, pp. 18-20. Storey, J. and Benady, D. (2001), “The final curtain?”, Marketing Week, 1 February, pp. 28-31. Sudman, S. and Blair, E. (1999), “Sampling in the twenty-first century”, Academy of Marketing Science, Vol. 27 No. 2, pp. 269-77. Wellman, D. (1997), “A categorical rejection”, Supermarket Business, Vol. 52 No. 9, pp. 69-73. Whiteoak, P. (1999), “The realities of quick response in the grocery sector. a supplier viewpoint,”, International Journal of Physical Distribution & Logistics Management, Vol. 29 No. 7/8, pp. 508-20. Zenor, M.J. (1994), “The profit benefits of category management”, Journal of Marketing Research, Vol. 31, May, pp. 202-13.

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The current issue and full text archive of this journal is available at www.emeraldinsight.com/0309-0566.htm

Individual differences, motivations, and willingness to use a mass customization option for fashion products Ann Marie Fiore College of Family and Consumer Science, Iowa State University, Ames, Iowa, USA

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835 Received April 2002 Revised November 2002

Seung-Eun Lee University of Minnesota St Paul, Minnesota, USA, and

Grace Kunz College of Family and Consumer Science, Iowa State University, Ames, Iowa, USA Keywords Mass customization, Fashion design, Fashion industry, United States of America Abstract Mass customization entails the mass production of individually customized goods and services. Co-design is a mass customization option where a product’s design is based on the customer’s selections from a range of design feature offerings. A model comprised of relationships between individual differences, motivations for using co-design, and willingness to use co-design was proposed and statistically supported using 521 university subjects from different regions of the USA and the analysis of moment structures (AMOS) statistic. As hypothesized, optimum stimulation level (OSL) predicted two clothing interest factors: experimenting with appearance (EA) and enhancement of individuality (EI). As proposed, OSL and EA predicted the two motivations, trying co-design as an exciting experience and using co-design to create a unique product, whereas EI only predicted using co-design to create a unique product. Both motives were mediating variables between individual differences and willingness to use co-design, but using co-design to create a unique product had a stronger effect. Theoretical and marketing implications were discussed.

Introduction Pine and Gilmore (1999) proposed that Western societies have evolved from an agrarian economy, to an industrial economy, then to a service economy and now have entered an “experience economy”. This evolution is evidenced by a change in what consumers demanded. Demand for agrarian commodities was supplanted by demand for industrial goods, followed by demand for intangible services, and now consumers want memorable experiences. Pine and Gilmore stress that services and experiences are distinct economic offerings. According to these authors, companies now use goods and services to engage customers in a memorable event, or experience. For example, a bookstore may sell magazine (goods) and serve coffee (service) to patrons who lounge in the bookstore’s overstuffed chairs while partaking in a rousing critique of the fashion editor’s pick of “must have” products for the coming season. The result is an experience for the patrons that acts as the marketing tool for the bookstore to attract

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customers to shop and purchase. Customers indirectly pay for the experience, as they would for other elements of the store’s marketing efforts, such as promotional advertising. Recognizing the value derived by the consumer from the combination of goods, service, and/or experience is essential to effective marketing. While the experience economy bloomed, industrialized countries of the UK (Wilson, 1999), France (Hetzel, 1998), and the USA (Taplin, 1999), faced modest growth and even decline in consumer demand for apparel products. This stagnation in demand is partly attributed to lack of product differentiation, uniqueness and novelty perpetuated by adherence to product-driven manufacturing, retail, and marketing systems (Duray and Milligan, 1999; Pine, 1993; Taplin, 1999; Wilson, 1999). A product-driven system, optimized by high volume and long production runs of standardized products (Pine, 1993) sold in “no-frills” retail outlets to the mass market, is out of step with the segment of today’s consumers demanding more than low price. Mass customization, an outgrowth of the service economy according to Pine and Gilmore (1999), may address the needs of these more demanding consumers. Mass customization is a hybrid of mass production and customization and is defined as “the mass production of individually customized goods and services (Pine, 1993, p. 48) ”. Mass customization may increase value for the customer through the development of differentiated, unique products and services. We propose that mass customization processes of fashion products may also offer memorable experiences that entice the customer. To help ensure successful marketing efforts for mass customized fashion products, the contribution of the goods, service, and experience to the consumer should be reconciled. Past failures, such as the Original Spin customized jeans program at Levi Strauss (Malone, 1999) or the Custom Foot Corporation’s customized footwear program (Malone, 1998), provide evidence that mass customization of fashion products is not a panacea for business. Understanding and marketing the factors that affect consumer acceptance of mass customization would help ensure business success. For example, individual differences of the consumer may delineate characteristics of the market segment for mass customized fashion products and reasons for using mass customization. Some customers may be satisfied by the value offered by the customized fit or aesthetic design of the fashion product. Other customers may welcome the added value provided by the stimulating mass customization experience. In particular, one who desires a high level of stimulation from the environment, defined as having a high optimum stimulation level (OSL) (Zuckerman, 1971; Raju, 1980), may value not only the unique product design but also the engaging experience derived from mass customization (Fiore et al., 2001). Many products and services have been mass customized, from automobiles and insurance to fashion products. Level of clothing interest (Creekmore, 1971) may further delineate consumers who value mass customization of fashion products and reasons for engaging in mass customization of these products. Understanding the aforementioned consumer characteristics of a market segment, including what motivates these consumers, could aid in the development of more effective marketing efforts for mass customization. Thus, the objective of the present study is to test a model linking individual differences as predictors of motivations and motivations as predictors of willingness to use a mass customization option for fashion products (Figure 1). The present model explores the linkages between individual differences of OSL and two factors of clothing interest, experimenting with appearance

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Figure 1. Conceptual model of individual differences, motivations, and willingness to use co-design

(EA) and enhancement of individuality (EI) to better delineate the consumer willing to engage in mass customization of fashion products. To better understand motivations of the consumer, we examine whether these individual differences (OSL, EA, and EI) predict two motivations for using mass customization of fashion products, creating a unique product and having an exciting experience. We also examine whether these two motivations predict willingness to engage in mass customization of fashion products. Hypotheses A growing number of apparel merchants large (e.g. Bob’s Stores, Brooks Brothers, Lands’ End, Levi Strauss, Nike) and small (e.g. Americanfit.com, Blackfrock.com based in the UK, IC3D, Second Skin Swimwear) are turning to mass customization. A total of 40 percent of all chino and jeans sales on Lands’ End’s Web site are now mass customized garments, leading the merchant to expand their mass customization program to include more pants fabric options and to customize shirts (Tedeschi, 2002). This incredible level of success at Lands’ End will reportedly lead other well-known apparel merchants to roll out their own mass customization programs within the year (Tedeschi, 2002). The range of mass customized fashion products has expanded to include dress shoes, athletic shoes, casual pants, jeans, dresses, tops, skirts, men’s suits, and women’s swimwear. Merchant efforts and past experience with non-store shopping venues have eliminated some deterrents to success of mass customization. Fear of using computers when shopping can be lessened by the use of trained in-store or online assistants to interface with the computer and/or help the customer through the mass customization procedure (Anderson et al., 1998; Lee et al., 2002). Similar to the online (Lee, 2002; Li et al., 2001) and catalogue (Catalog Age, 1999) shopping experiences, mass customization does not allow the consumer to evaluate the actual fashion product and he or she incurs monetary and time cost with the shipped product. For these reasons, a segment of consumers will not embrace mass customization of fashion products. However, liberal return policies (Tedeschi, 2002) and rapidly increasing numbers buying fashion products online (www.paullang.com, 2002) may have

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acclimated a large segment of consumers to ordering, paying for shipping, and waiting for mass customized fashion products to arrive. Research (Lee et al., 2002) and industry information (Tedeschi, 2002) support that consumers are willing to pay more and willing to wait for the mass customized fashion product to be shipped. This growth in mass customized brands and product types along with growth in the number of consumers acclimated to non-store shopping drawbacks advocate the sure-footing mass customization has for continued expansion, which supports the need for examination. Apparel firms adopt one or both mass customization options, “body scanning for a better fitting product” and/or “co-design for a unique aesthetic design”. Body scanning involves using electronic measurements of the customer’s body form to develop a manufactured product with an individualized fit. In co-design the customer, generally with the aid of CAD technology and/or professional assistance, creates an individualized product design from a company’s style, fabric, colour, surface design, and size alternatives. Then the product is manufactured for the customer. Both of these options provide value through the product; the product has a better fit or meets the customer’s design specifications of the customer, respectively. Mass customization of fashion products may also be an excellent vehicle for building an experience for the customer. In co-design, the focus of the present study, technology assisted data collection from the customer, including presentation of product design options and computer modeling of the customized product to assist selection, may foster an engaging experience due to novelty, creative expression, and interface with advanced technology. Co-design provides a new outlet for creative expression; customers act as designers, creating unique products from an array of design options presented by the apparel firm and see the creation take shape on the computer screen. Past research supports the importance of both the product and the experience in willingness to use mass customization options (Fiore et al., 2001). The present study will further examine the role of the product and experience in acceptance of mass customization by testing whether the resulting unique product design and exciting experience are motivations that increase willingness to use co-design. Based on the discussion of potential benefits of mass customization and previous research findings we believe both the product and experience will motivate subjects’ willingness to use co-design. We propose: H1. The motivation, creating a unique product, will positively predict subjects’ willingness to use co-design. H2. The motivation, trying co-design as an exciting experience, will positively predict subjects’ willingness to use co-design. OSL characterizes an individual’s general response to environmental stimuli. Every organism has a preferred level of stimulation, termed the “optimum stimulation level” (Zuckerman, 1971). An individual seeks this level of stimulation from environment stimuli. According to Kish and Donnenwerth (1969), high OSL individuals find stimulation in situations, activities, and ideas that are novel, changing, complex, surprising, and intense. According to Raju (1980), high OSL individuals have more positive responses towards new stimuli and situations than low OSL individuals. Positive responses towards new stimuli suggest that high OSL individuals would be motivated to use co-design to acquire unique products, whereas positive responses

towards new situations intimate that high OSL individuals would also be motivated by the exciting experience offered by co-design. Past research (Fiore et al., 2001) supports a positive relationship between OSL and using mass customization of apparel for supplying a unique product and for providing an exciting experience. Raju (1980) illustrated that high OSL individuals are characterized as having a higher degree of exploratory tendencies (i.e. exploring the environment) motivated by variety seeking, curiosity, and risk taking. Steenkamp and Baumgartner’s (1992) comprehensive review of OSL literature and empirical study confirmed that OSL was positively associated with consumer behaviours motivated by variety seeking, intrinsic curiosity, and risk taking. OSL was positively correlated with exploratory tendency factors of innovativeness (i.e. eagerness to know about or try new products or services), brand switching for change or novelty, and selecting products that involve perceived risk. Steenkamp and Baumgartner (1992) concluded that high OSL individuals are driven by curiosity, or an intrinsic need to seek information for its own sake, rather than utilitarian “purposive” search behaviour. Wahlers et al. (1986) found that OSL was positively correlated with the exploratory tendency factor, exploration through shopping. Similarly, Hanna and Wagle (1989) conclude that level of consumer effort and stimulation during shopping is positively associated with level of OSL. Ample support for the positive relationship between OSL and the exploratory tendencies fed through consumer products and consumer behaviours, including the use of mass customization, suggests that the experience of co-design will motivate high OSL individuals as much as the resulting co-designed product. We therefore hypothesize: H3. OSL will positively predict trying co-design as an exciting experience. H4. OSL will positively predict using co-design for creating a unique design. High OSL individuals have a multitude of ways for satisfying their exploratory tendencies. Fashion, an ever-changing product, and experimenting with one’s appearance may be outlets for these exploratory behaviours, particularly for college-aged consumers (Stanforth, 1995). To investigate this premise, associations between individual differences of OSL and factors of clothing interest (Gurel and Gurel, 1979) can be measured. Because of the dependence on appearance as an outlet of exploratory tendencies for college-aged students, the sample used in the present study, we hypothesize that OSL will predict level of clothing interest. In particular, because the EA factor of clothing interest represents an interest in fashion, embracing fashion change, and enjoying the process of creative experimentation with one’s appearance (Stanforth, 1995) we posit: H5. OSL will positively predict EA. Items in the EA factor stress trying new or different fashion products to see how one looks. The “playful orientation” (Cosby, 2001) in trying new products captures the experience-oriented nature of the factor and the “interest in novel forms of clothing” (Cosby, 2001) captures its product-oriented nature. The creative process of trying on fashion products may provide a stimulating experience as well as an innovative end product to fulfill high OSL individuals’ tendencies toward curiosity and innovation. The process of experimentation with new and different styles to change appearance, the defining characteristics of this factor, suggests that EA will predict the motivations

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of trying co-design because it is an exciting experience as well as offering unique fashion products. Accordingly, we postulate: H6. EA will positively predict trying co-design as an exciting experience. H7. EA will positively predict using co-design to create a unique fashion product.

840

High OSL individuals were more likely than low OSL individuals to be fashion innovators (Kwon and Workman, 1996; Stanforth, 1995). Fashion innovators are sensation seekers who respond favorably to new fashions that provide novelty and excitement; they approach new or unfamiliar fashion products with openness and little anxiety. Fashion innovators use apparel to differentiate themselves from others and express their individuality (Stanforth, 1995). The linkages between OSL and fashion innovation and between fashion innovation and expression of individuality suggest that OSL may be related to another clothing interest factor, EI (Gurel and Gurel, 1979). EI represents individuals who are motivated by creating a unique appearance. EI focuses on the motivation to use fashion products for creating an appearance that has a sense of uniqueness and attracts attention. Similar to the postulated association between OSL and EA, we offer: H8. OSL will positively predict EI. The EI motivation may be nicely fed by co-design. In co-design, design features are combined which may result in a product unlike those available on the market. Martin (1997) touted that Custom Foot allowed 10,000 shoe design variations, many of which would be unique to the market. Co-design also allows for more complexity or fashion innovation in the product. For instance, Levi’s personal pair program allows the customer to personalize jeans with a variety of features including laser tattoo etching, beading, photo transfers and fake fur trim (Knight, 1999). Whereas high EA individuals embrace the stimulating experience of changing appearance with new fashion products as well as the resulting unique appearance, high EI individuals are interested in the end product, the resulting unique appearance. Therefore, EI will only predict using co-design to create a unique product. We propose: H9. EI will positively predict using co-design to create a unique fashion product. Method Subjects A total of 521 students from five public university campuses representing different regions (East coast, West coast, North central, and Southwest and Southeast) of the USA participated in this study in exchange for extra credit points towards their course grades. The subjects came from a variety of majors, with business majors and textiles and clothing majors each comprising about 25 per cent of the total. About half (48.6 per cent) shopped for clothing at least once a month and about 30 per cent shopped every week. The average age for the 423 female and 91 male subjects answering the gender question was 21 years old. The narrow age range and college education level of this convenience sample limited the inclusion of these variables in model testing, but offered several advantages. Subjects of this description were likely to have higher than average OSLs (Raju, 1980), thus ensuring a significant range in OSL scores to test the theoretical propositions. Whereas the narrow age range of the university subjects does

not permit generalizing results to all US consumers, the age of the sample coincides with the age group most wanting more customized products and services (Gardyn, 2001). The present subjects were experienced with using computers (M ¼ 3:39, on a 2 4 to +4 scale) and liked using them (M ¼ 2:73), which are two factors found to be important in the acceptance of mass customization (Pisut et al., 1998; Wu et al., 1998). Therefore, the college student may be a prime target customer for mass customization. Use of the student sample also furthers research-based (Fiore et al., 2001; Pisut et al., 1998; Wu et al., 1998) understanding of this target market’s response to mass customization. This sample limited the use of socio-economic variables such as income or education in model testing because the range was narrow. Instrument Some of the scales used in the present instrument were the same as those used by Fiore et al. (2001) in their study examining the acceptance of mass customization options with 135 subjects from a Midwestern university. Similar to the Fiore et al. study, all items used in testing the hypotheses were scored on nine-point scales from 2 4 (strongly disagree) to 4 (strongly agree). Whereas many scales have been used to measure OSL and new scales have been introduced (Grande, 2000), we retained the 40-item arousal seeking tendency (AST) scale used in the Fiore study, because research (Steenkamp and Baumgartner, 1992; Wahlers et al., 1986) confirms that the AST scale was the best measure of consumer exploratory behaviour tendencies of OSL. The AST scale measures preference for arousal from change, unusual stimuli, risk, sensuality, and new environments. The scale’s developers (Mehrabian and Russell, 1974), and other researchers (see Steenkamp and Baumgartner, 1992) found the AST scale to have reliability and validity. Fiore et al.’s (2001) study did not measure experience-oriented and product-oriented clothing interest. To accomplish this we used the only scale we found available that tapped both product and experience aspects of clothing interest or involvement, the clothing interest scale (Gurel and Gurel, 1979). We utilized eight items loading at.50 or above in the scale’s experience-oriented factor, EA, and the five items loading at the same level in the scale’s product-oriented factor, EI according to the Gurel and Gurel (1979) study. The scale was found to have construct validity (Gurel and Deemer, 1975). To assess willingness to use co-design, subjects read a short description of co-design then responded to four items from the Fiore et al. (2001) study. These items tapped the importance that the apparel industry offers co-design, interest in using co-design, willingness to pay more for co-designed products, and willingness to spend more time creating a co-designed product. Willingness to try co-design as an exciting experience and interest in using co-design for creating a unique design completed the questions needed to test the hypotheses. Demographic information gathered from subjects included age, college major, gender, shopping frequency, and computer usage. Colleagues at four cooperating universities were paid $100 to collect data from students on their respective campuses. Confidentiality of responses was ensured through identification numbers used during data analysis. Preliminary data analysis Prior to final data analysis, principal component analyses were conducted separately on the multi-item AST scale, EA measure, and EI measure. Similar to the results of

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Steenkamp and Baumgartner (1992) and Wahlers et al. (1986), the eigenvalues from principal component analysis of the AST scale did not support the five-dimensional structure defined by Mehrabian and Russell (1974). Indiscriminate factor loadings of items for the 13 factors with eigenvalues greater than one suggested that one variable, the sum of these items, would be the best solution for the present study. Supporting the factor structure defined by Gurel and Gurel (1979), items of clothing interest included in the present study formed two factors: EA and EI (see Table I). Alpha coefficient for the AST scale, EA, and EI were 0.88, 0.91 and 0.79, respectively. Alpha coefficient for the multi-item measures for willingness to use co-design was 0.89. Therefore, measures used to test the proposed hypotheses were reliable. Results The conceptual model consists of one exogenous (OSL) and five endogenous constructs (EA, EI, exciting experience, unique product, and willingness to use co-design). The nine hypotheses based on the conceptual model (see Figure 1) were tested concurrently using the analysis of moment structures (AMOS) based on correlations among the construct measures. Correlations for the model constructs appear in Table II. Figure 2 provides coefficients and t-values for each path as well as the fit indices of the model. The results of the AMOS for the conceptual model revealed a chi-square of 11.01 (df ¼ 5, p ¼ 0:05), GFI of 0.99, adjusted GFI of 0.97, RMSEA of 0.05, and NFI of 0.99 which indicates that the conceptual model fits the data quite well. All hypothesized relationships were statistically significant. H1, predicting a positive relationship between creating unique design and willingness to use co-design was supported (t ¼ 21:44, p # 0:001). The proposed relationship between trying co-design as an exciting experience and willingness to use co-design (H2) was also supported (t ¼ 11:703, p # 0:001). The results show that both the resulting unique product and exciting experience were important motivations for willingness to use co-design.

Variables and sample items

Table I. Principal component analysis for two clothing interest factors, EA and EI

Factor loading

EA (eigenvalue ¼ 6:41, variance explained ¼ 49:31 per cent) I try on some of the newest clothes each season to see how I look in the styles It’s fun to try on different garments and accessories to see how they look together I try on clothes in shops just to see how I will look in them without really planning to buy I enjoy trying on shoes of different styles or colors My friends and I try one another’s clothes to see how we look in them I read magazines and newspapers to find out what is new in clothing I experiment with new or different hairstyles to see how I will look I like to know what is new in clothing even if none of my friends cares

0.81 0.83 0.77 0.82 0.75 0.75 0.63 0.71

EI (eigenvalue ¼ 1:53, variance explained ¼ 11:78 per cent) I try to buy clothes that are very unusual When new fashion appears on the market I am one of the first to own them I enjoy wearing very different clothing even though I attract attention I avoid wearing certain clothes because they do not make me feel distinctive I have clothes that I don’t wear because everyone else has them

0.76 0.63 0.79 0.65 0.63

Model constructs OSL EAa EIa Exciting experience Unique product Willingness to use co-design

1

2

– 0.27 0.27 0.30 0.29 0.26

– 0.00 0.36 0.39 0.36

Correlations 3 4

– 0.15 0.25 0.19

– 0.72 0.78

5

– 0.86

6

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Note: a Experience with appearance (EA) and enhancement of individuality (EI) are clothing interest factors

Table II. Model construct correlations

Figure 2. Statistical results for structural model of individual differences, motivations, and willingness to use co-design

H3, H4, H6, H7 and H9 examined the effect of individual differences on motivations for using mass customization. H3 and H4, predicting positive relationships between OSL and two motivations for using co-design, were statistically supported. Results revealed that high OSL individuals were motivated by an exciting experience offered by the co-design process (t ¼ 5:28, p # 0:001) as well as uniqueness of the resulting product (t ¼ 3:82, p # 0:001). H6, H7, and H9, testing relationships between clothing interest (EA, EI) and motivations for using co-design, received support. EA positively predicted trying co-design as an exciting experience (t ¼ 7:22, p # 0:001) and using co-design to create a unique fashion product (t ¼ 8:77, p # 0:001). EI positively predicted using co-design to create a unique fashion product (t ¼ 4:92, p # 0:001). These results indicate that high EA individuals were motivated to use co-design because of the novel experience of the co-design process as well as to create a product that may contribute to a unique appearance. However, high EI individuals appear to have been solely motivated by creating a unique product that could help generate a unique appearance.

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Finally, as H5 and H8 proposed, OSL positively predicted EA (t ¼ 6:42, p # 0:001) and EI (t ¼ 6:49, p # 0:001). The results indicate that high OSL individuals, more than low OSL individuals, are associated with the clothing interest factors, EA and EI. To further substantiate the effects of individual differences and motivations on willingness to use co-design, we conducted decomposition of direct, indirect, and total effects for the model (Table III). The decomposition results indicate that each variable was significantly related to willingness to use co-design ( p # 0:001). The variable, creating a unique product, had the strongest total effect on willingness to use co-design. All individual difference variables, EA, EI, and OSL, had significant but indirect effects on willingness to use co-design, suggesting the important mediating effects of the two motivations, trying co-design as an exciting experience and creating a unique fashion product. In addition, while EA, EI, and OSL each had a significant effect on creating a unique fashion product, only two (EA and OSL) of the three had significant effects on trying co-design as an exciting experience. Discussion Pine and Gilmore (1999) propose that Western societies have entered an “experience economy”. Accordingly, businesses should no longer simply focus on providing a product or service, but also create experiences for the customer because present day consumers increasingly derive value from experiences. Experiences are stimulating events that provide intrinsic pleasure (i.e. pleasure for its own sake; Hirschman and Holbrook, 1982) rather than the utilitarian benefits derived from services. To create an experience, a business must engage customers in a pleasurable, memorable event during the sale of a product and while providing a service. Variablesa

Table III. Decomposition of direct, indirect, and total effects for the model

Total effects

Indirect effects

Direct effects

Willingness to use co-design Exciting experience Unique product EAb EIb OSL

0.34* 0.62* 0.32* 0.09* 0.28*

– – 0.32* 0.09* 0.28*

0.34* 0.62* – – –

Exciting experience EAb EIb OSL

0.30* – 0.30*

– – 0.08*

0.30* – 0.22*

Unique product EAb EIb OSL

0.35* 0.15* 0.30*

– – 0.14*

0.35* 0.15* 0.16*

EA b OSL

0.27*

–

0.27*

EI b OSL

0.27*

–

0.27*

Notes: * p # 0:0001; a Dependent variables are italicized; independent variables are not italicized; b Experience with appearance (EA) and enhancement of individuality (EI) are clothing interest factors

Motivations for using co-design of fashion products According to the findings of the present study, today’s consumer may turn to co-design to fulfill the desire for experience. Present findings support Fiore et al.’s (2001) study that concluded mass customization of fashion products not only increases value for the customer through the development of differentiated, unique products but also offers experiences that entice the customer. Biedron and Anderson-Connell’s (1999) study that found enjoyment from shopping to be positively correlated with interest in using mass customization options corroborates the potential importance of experience aspects of mass customization for the consumer. However, the present study illustrates the relative contribution of the two significant motivation variables (creating a unique product and exciting experience) to willingness to use co-design; creating a unique product explained more variance for willingness to use co-design than did trying co-design as an exciting experience. This suggests that careful development of the mass customization process that ensures the resulting product meets the needs of the customer is essential but should not be the sole concern. The firm offering co-designed fashion products should also implement a customization process that creates a memorable experience for the customer, as this may be a means of drawing customers and differentiating among mass customizers. Therefore, for the apparel firm undertaking a co-design venture, the co-design process should be scrutinized to determine ways to ensure satisfaction with the resulting product while enriching the experience. To effectively market co-design, one should stress both the resulting unique product and the experience of the co-design process. Knowing that the resulting product and experience are important to the co-design customer is the beginning step for the co-design firm. Specific factors affecting satisfaction with the product and experience should be explored. Therefore, research should explore mass customization process factors that contribute to the product and the stimulating experience. For instance, what roles do sheer novelty, advanced technology, human interaction, and the creative process play in forming the experience? If the experience from co-design were due to sheer novelty of the process, then companies would have to continually update the process to satiate the desire for new experiences or risk losing the customer. Research (Lee et al., 2002) concluded that consumers preferred advanced technology features in co-design, such as software to visualize the co-designed product on a form similar to the customer’s body. Application of such technology to the process of co-design may not only facilitate the design of the product and ensure customer satisfaction with the resulting product but also enrich the experience. Technology that permits the visualization of the product on the moving body may enhance telepresence, or the feeling of being immersed in the computer-generated environment (Shih, 1998). Future research should empirically examine the effects of technology and telepresence on the co-design experience, as telepresence has been said to enhance the experience for the consumer (Shih, 1998). Active engagement of the customer in the creative process appears to be central to the experience of co-design. Future research may examine interpersonal interactions with the co-design assistant and limitations in design options on satisfaction with both the creative experience of co-design and the resulting product. The effect of branding on the creative experience and co-design options would be interesting to explore. For instance, research may examine how to ensure the aesthetic of the co-designed product

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fits with the carefully crafted aesthetic of the brand image (Schmitt and Simonson, 1997) without having a deleterious effect on the consumer’s experience or satisfaction with the co-designed product. Past research (Fiore et al., 2001) found that willingness to use the other mass customization option, body scanning, was positively correlated with OSL, which suggests the experience may be as important to body scanning as it is to co-design. Future research should examine the relative contribution of the product and experience to body scanning. Marketing strategies for co-design and body scanning may need to differ depending on the motivations of the respective customers. OSL, clothing interest, and motivations for using co-design As hypothesized, OSL predicted using co-design for its exciting experience and for the resulting unique product. These results align with those of earlier studies examining OSL and consumer behaviours. The exciting experience of co-design appears to be an outlet for high OSL individuals’ innovativeness (i.e. eagerness to know about or try new products or services) reported by Steenkamp and Baumgartner (1992). Because the co-designed product cannot be tried on before purchase and has not been adopted by others in the peer group this product involves more financial and social risk (see Minshall et al., 1982 for definitions) than mass-produced products. Hence, high OSL individuals’ willingness to use co-design for a unique product supports the reported positive association between OSL and consumer-oriented risk taking (Steenkamp and Baumgartner, 1992). The co-design process involves a high level of consumer input and stimulation. Therefore, high OSL individuals’ willingness to use co-design supports findings that level of consumer effort and stimulation during shopping is positively associated with OSL (Hanna and Wagle, 1989; Wahlers et al., 1986). OSL of the market segment may guide development of marketing strategies. High OSL characterizes the market segment that is willing to use co-design, which suggests that marketers should emphasize co-design’s newness rather than downplaying its risks. Convenience may not be of major concern to the co-design customer; they are willing to put forth more effort during shopping. Therefore, this suggests that marketers should focus on the level of consumer involvement and the control over the final product. Future research could explore relationships between willingness to use co-design and exploratory tendency factors of innovativeness (i.e. eagerness to know about or try new products or services), brand switching for change or novelty, and selecting products that involved perceived risk for co-design users. The results of this line of study would aid the development of the co-design process and its related marketing efforts. High OSL individuals have a multitude of ways for satisfying their exploratory tendencies. Clothing or fashion appears to be an outlet for the exploratory tendencies of the college-aged subjects in the present study. OSL predicted EA and trying co-design as an exciting experience, which suggests that attention to fashion change and the process of creative experimentation with appearance may satisfy exploratory tendencies for high OSL college-aged consumers. OSL also predicted EI and using co-design to create a unique product, suggesting that creating a unique attention-getting appearance may also feed the exploratory tendencies of high OSL college-aged consumers. These findings, while reinforcing the relationship between OSL and willingness to use co-design found in previous

research (Fiore et al., 2001), also refine the characteristics of the segment willing to use co-design. Based on the path coefficients for OSL to EA and EI, both the process of EA and the resulting unique appearance appear to provide the stimulation required by high OSL individuals. However, the linkages between OSL and the two factors of CI, EA and EI, may vary by age or life stage. Age or life stage may affect outlets for exploratory tendencies, shifting from fashion for college-age consumers to home decoration upon home ownership for consumers in their early thirties, for instance. Conversely, outlets for exploratory tendencies may be cumulative, where new outlets are added to, rather than replace, fashion. OSL would therefore continue to predict EA and EI. If the outlet for exploratory tendencies varies by age then marketing strategies for mass customized junior’s fashion and women’s fashion should vary accordingly. For example, the marketing strategy for mass customized women’s fashion would focus on lowering its perceived risk whereas the strategy for junior’s fashion may emphasize excitement from switching to the new brand. The (transitory or cumulative) nature of outlets for exploratory tendencies deserves further study. Present findings provide support for proposed motivations underlying EA and EI. EA entails using co-design to create a unique product as well as an exciting experience, whereas EI entails using co-design solely for the exciting experience. This suggests that marketing efforts should be varied depending upon the makeup of the consumer. Those with a high level of EI may not be enticed by the exciting experience of co-design, whereas those with a high level of EA may be swayed. Yet, the resulting unique product appears to be attractive to individuals with a high level of either EA or EI. In conclusion, the two motivations, trying co-design as an exciting experience and creating a unique fashion product contributed a substantial portion of the variance explained in willingness to use co-design and mediated relationships between individual difference variables (EA, EI, and OSL) and willingness to use co-design. A stronger effect of creating a unique product on willingness to use co-design than trying co-design as an exciting experience indicates that the uniqueness of the product should be the primary marketing feature, but promoting the exciting experience could augment the appeal of co-design. References Anderson, L.J., Pisut, G., Brannon, E. and Ulrich, P. (1998), “Tailor-made technology: new computerized customizing programs helping consumers, apparel industry alike”, Highlights of Agricultural Research, Vol. 45 No. 4, available at: www.ag.auburn. edu/aaes/information/highlights/winter98/tailor.html (accessed November 21, 2002). Biedron, M. and Anderson-Connell, L.J. (1999), “Profiling consumer interest in mass customization”, International Textiles and Apparel Association Proceedings, pp. 95-6. Catalog Age (1999), “The 1999 consumer catalog shopping survey”, Catalog Age, supplement, pp. a1-a18. Cosby, S. (2001), “Clothing interest, clothing satisfaction, and self-perception of sociability, emotional stability, and dominance”, Social Behavior and Personality, Vol. 29 No. 2, pp. 145-52. Creekmore, A.M. (1971), “Methods for measuring clothing variables”, Project No. 783, Michigan Agricultural Experiment Station, Michigan State University, East Lansing, MI.

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Duray, R. and Milligan, G.W. (1999), “Improving customer satisfaction through mass customization”, Quality Progress, Vol. 32 No. 8, pp. 60-6. Fiore, A.M., Lee, S.-E., Kunz, G. and Campbell, J.R. (2001), “Relationships between optimum stimulation level and willingness to use mass customization options”, Journal of Fashion Marketing and Management, Vol. 5 No. 2, pp. 99-107. Gardyn, R. (2001), “Swap meet”, American Demographics, July, pp. 51-5. Grande, I. (2000), “A structural equation modeling approach for assessing the dimensions of the optimum stimulation level”, Journal of International Consumer Marketing, Vol. 12 No. 2, pp. 7-26. Gurel, L.M. and Deemer, E.M. (1975), “Construct validity of Creekmore’s clothing questionnaire”, Home Economics Research Journal, Vol. 4, pp. 61-8. Gurel, L.M. and Gurel, L. (1979), “Clothing interest: conceptualization and measurement”, Home Economics Research Journal, Vol. 7 No. 9, pp. 274-82. Hanna, N. and Wagle, J.S. (1989), “Who is your satisfied customer?”, Journal of Consumer Marketing, Vol. 6 No. 1, pp. 53-61. Hetzel, P. (1998), “The current state of the clothing industry and market in France”, Journal of Fashion Marketing and Management, Vol. 2 No. 4, pp. 386-91. Hirschman, E.C. and Holbrook, M.B. (1982), “Hedonic consumption: emerging concepts, methods and propositions”, Journal of Marketing, Vol. 46, pp. 92-101. Kish, G. and Donnenwerth, G. (1969), “Interests and stimulus-seeking”, Journal of Counseling Psychology, Vol. 16, pp. 551-6. Knight, M. (1999), “Taking it personally at Levi’s”, Daily News Record, December 27, p. 10. Kwon, Y. and Workman, J.E. (1996), “Relationship of optimum stimulation level to fashion behaviour”, Clothing and Textiles Research Journal, Vol. 14 No. 4, pp. 249-56. Lee, P.-M. (2002), “Behavioral model of online purchasers in e-commerce environment”, Electronic Commerce Research, Vol. 2 No. 1/2, pp. 75-85. Lee, S.-E., Kunz, G., Fiore, A.M. and Campbell, J.R. (2002), “Acceptance of mass customization of apparel: merchandising issues associated with preference for product, process, and place”, Clothing and Textiles Research Journal, Vol. 20 No. 3, pp. 138-46. Li, H., Daugherty, T. and Biocca, F. (2001), “Characteristics of virtual experience in electronic commerce: a protocol analysis”, Journal of Interactive Marketing, Vol. 15 No. 3, pp. 13-30. Malone, S. (1998), “Custom foot-falls into bankruptcy, but concept lives on, says founder”, Footwear News, Vol. 54 No. 23, p. 5. Malone, S. (1999), “Making strides in mass customization”, Women’s Wear Daily, July, p. 12. Martin, J. (1997), “Give ’em exactly what they want”, Fortune, November 10, available at: www.pathfinder.com/fortune/1997/971110/bes.html (accessed August 19, 2000). Mehrabian, A. and Russell, J.A. (1974), An Approach to Environmental Psychology, MIT Press, Cambridge, MA. Minshall, B., Winakor, G. and Swinney, J.L. (1982), “Fashion preferences of males and females, risks perceived, and temporal quality of styles”, Home Economics Research Journal, Vol. 10, pp. 369-79. Pine, J. II (1993), Mass Customization: The New Frontier in Business Competition, Harvard Business School Press, Boston, MA. Pine, J.B. II and Gilmore, J.H. (1999), The Experience Economy: Work Is Theater and Every Business a Stage, Harvard Business School Press, Boston, MA.

Pisut, G., Anderson, L.J. and Grasso, M. (1998), “Profiling consumer interest in mass customization”, International Textiles and Apparel Association Proceedings, p. 39. Raju, P.S. (1980), “Optimum stimulation level: its relationship to personality, demographics, and exploratory behavior”, Journal of Consumer Research, Vol. 7, pp. 272-82. Schmitt, B. and Simonson, A. (1997), Marketing Aesthetics: Strategic Management of Brands, Indentity, and Image, The Free Press, New York, NY. Shih, C. (1998), “Conceptualizing consumer experiences in cyberspace”, European Journal of Marketing, Vol. 32 No. 7/8, pp. 655-63. Stanforth, N. (1995), “Fashion innovators, sensation seeking, and clothing individualists”, Perceptual and Motor Skills, Vol. 81, pp. 1203-10. Steenkamp, J.E.M. and Baumgartner, H. (1992), “The role of optimum stimulation level in exploratory consumer behavior”, Journal of Consumer Research, Vol. 19, December, pp. 434-48. Taplin, I.M. (1999), “Continuity and change in the US apparel industry: a statistical profile”, Journal of Fashion Marketing and Management, Vol. 3 No. 4, pp. 360-8. Tedeschi, B. (2002), “An online success for Land’s End”, nytimes.com, September 30, available at: www.nytimes.com/2002/09/30/technology/30ECOM.htnl?pagewanted ¼ print& (accessed September 30). Wahlers, R.G., Dunn, M.G. and Etzel, M.J. (1986), “The congruence of alternative OSL measures with consumer exploratory behavior tendencies”, in Lutz, R. (Ed.), Advances in Consumer Research, Vol. 13, Association of Consumer Research, Provo, UT, pp. 398-402. Wilson, J. (1999), “Fashion and marketing conference: keynote address by John Wilson OBE”, Journal of Fashion Marketing and Management, Vol. 3 No. 4, pp. 370-6. Wu, W., Anderson, L.J. and Ulrich, P. (1998), “An investigation of consumer interest in co-design for mass customization of apparel”, International Textiles and Apparel Association Proceedings, pp. 38-9. www.paullang.com (2002), “US online consumer sales surge to $53 billion in 2001”, January 25, available at: www.paullang.com/ezine/news0556.shtml (accessed July 16). Zuckerman, M. (1971), “Dimensions of sensation seeking”, Journal of Consulting Psychology, Vol. 36, pp. 45-52.

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Negative symbolic consumption and consumers’ drive for self-esteem

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The case of the fashion industry

Received May 2003 Revised October 2003

Emma N. Banister Lancaster University Management School, Lancaster, UK, and

Margaret K. Hogg Manchester School of Management, UMIST, Manchester, UK Keywords Self esteem, Consumption, Product image, Fashion industry Abstract Self-esteem is an important motivational drive for consumption involving both the acceptance and rejection/avoidance of symbolic goods. This paper examines the relationship between self-esteem and the rejection of goods and brands within the context of fashion consumption by young professionals. A conceptualisation which accounts for consumers’ use of various strategies in their efforts to maintain or enhance their self-esteem is suggested. A small-scale exploratory study is used to examine first, how consumers invest products and brands with negative symbolic meanings; and second, how this leads consumers to reject products and brands. The importance of understanding negative symbolic consumption when marketing high involvement products such as fashion goods is identified; and the implications for fashion retailers and marketing management are discussed.

European Journal of Marketing Vol. 38 No. 7, 2004 pp. 850-868 q Emerald Group Publishing Limited 0309-0566 DOI 10.1108/03090560410539285

Introduction This paper explores the means by which young adult consumers use the negative symbolic meanings invested in fashion products as a key to identity negotiation. We investigate consumers’ need to balance autonomy and affiliation in their choices of fashion, a market where consumers are defined as much by what they choose to reject as by what they actively purchase and display. The pursuit of self-esteem is recognised by marketing managers as one of the most important motivational drivers of consumer behaviour and decision-making, and, therefore, consumers’ decisions are regularly made within the context of enhancing or protecting self-esteem, in recognition of the value of the self (Grubb and Grathwohl, 1967). Consumers often decide whether to accept or reject products and brands on the basis of their symbolic (as opposed to the functional) attributes, investing items with either positive or negative symbolic meanings. Despite considerable research into understanding how individuals maintain or enhance their self-esteem by consuming the symbolic meanings of products and brands, rather less attention has been directed towards understanding why consumers reject products or brands for symbolic reasons (i.e. negative symbolic consumption) to protect their self-esteem. One reason for this is that negative symbolic consumption leaves very few traces (Wilk, 1995, 1997). However, understanding why consumers reject products and brands is of central concern to marketing managers.

Literature review The literature review focuses on symbolic consumption; self-concept; self-esteem; image congruency (Grubb and Grathwohl, 1967); and self-discrepancy theory (Higgins et al., 1994) incorporating the motivational effects of possible selves (Markus and Nurius, 1986). We establish the importance of understanding the negative inferences that are associated with products and brands, often through the stereotypes associated with product-user imagery (Sirgy et al., 1997), and present a theoretical conceptualisation of the potential relationship between rejected goods and negative (and thus rejected) aspects of consumers’ identities. Three research questions are identified from this conceptualisation and will provide the focus for this paper. Firstly, how do consumers invest products and brands with (negative) symbolic meanings? Secondly, how do consumers use the rejection of products and brands to pursue self-esteem by seeking to satisfy two potentially oppositional motivational drives – social identification and social distinction (Simmel, 1904; Gronow, 1997, p. 77) or autonomy and affiliation? Thirdly, how can fashion marketers and retailers encompass an understanding of consumer motivational drives and negative symbolic consumption in their integrated marketing strategies? Symbolic consumption Material objects are viewed as symbolic when individuals focus on meanings beyond their tangible, physical characteristics (Levy, 1959). Thus products are social tools, “serving as a means of communication between the individual and his significant references” (Grubb and Grathwohl, 1967, p. 24)[1]. We extend this argument to incorporate the relationship between negative symbolic meanings and consumers’ pursuit of self-esteem in the social communication process. In order for consumer products and brands to function as communication symbols, meanings must be socially shared, and continuously produced and reproduced during social interactions (Dittmar, 1992). However, the meanings of objects are not always clear-cut (Ligas and Cotte, 1999; Holt, 2002); nor necessarily always controlled by manufacturers and marketers, as consumers can invest products and brands with either positive or negative meanings (Sirgy et al., 1997). Products can therefore function as symbols of individuality and uniqueness (Hoyer and MacInnis, 1997), autonomy and social distinction (Simmel, 1904; Gronow, 1997); and also as symbols of affiliation and social identification. All these higher-order needs can be linked to the maintenance and enhancement of self-esteem. Fashion and clothing were selected as the context for this study due to their symbolic properties and accessibility to most consumers. Clothing, defined here to include tangible and material objects connected to the human body (Kaiser, 1997), involves overt consumption behaviour that makes consumers’ tastes and values accessible to others. Fashion can refer to the process by which styles are introduced to a public and accepted by that public (Sproles, 1979, p. 5, cited in Kaiser, 1997) and also a particular style that is accepted by a large group of people at a particular time (Kefgen and Touchie-Specht, 1986, cited in Kaiser, 1997). Gronow (1997) develops this further to suggest fashion to be a socially valued or a “universal” standard of taste that also incorporates the singularity and subjectivity of individual tastes. Drawing on Georg Simmel (1904), Gronow (1997) views fashion as satisfying two opposing functions – both social identification and distinction: “It is a socially acceptable and

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secure way to distinguish oneself from others and, at the same time, it satisfies the individual’s need for social adaptation and imitation” (Gronow, 1997, p. 84). Murray (2002) emphasises the political nature of clothing as consumers make choices between particular cultural perspectives – aligning themselves with some while resisting others. Through a process of appearance management, individuals use clothing in the constant negotiation of who they are (Kaiser et al., 1991) and who they are not (Freitas et al., 1997). Fashion brand managers and retailers position their designs and products with a view to its political nature, appealing to certain consumer segments while remaining distant from others. In this study we focus on consumers’ appearance management, the style of clothing they wear, incorporating the activities and thought processes involved in the purchase and display of clothing items (Kaiser, 1997). We did not specifically focus on fashion brands, as we were keen to identify those meanings attributed by consumers, and much of the imagery associated with brands is generated in the market place by marketing communications and advertising. However, branding was an important consideration for some consumers, particularly the male participants. Self-concept, self-esteem and self-consistency Motives represent the disposition within an individual either to strive towards positive incentives (goals), or to avoid negative incentives (threats) (Markus and Nurius, 1986). Two motives are central to the self-concept and image congruency theory (Grubb and Grathwohl, 1967): self-esteem and self-consistency (Rosenberg, 1979, p. 53). Self-esteem is the motive to seek experiences that enhance or protect the self-concept whereas self-consistency is the motive to behave consistently with our views of our selves. Self-esteem will be our primary concern for this study as it is strongly linked to the responses of, and acceptance by, significant others and involves both approach and avoidance behaviours. Approach behaviours are associated with the maintenance and enhancement of individuals’ sense of self-esteem; whilst avoidance behaviours include protecting self-esteem by avoiding negative possibilities, represented by the negative possible self or “dreaded self” (Power, 1997, p. 6). Attitudes play an important role in maintaining and protecting self-esteem, encouraging consumers to distance themselves from disliked products and brands (Shavitt, 1989; 1990). The maintenance of self-esteem can be linked to the social identity function of social adjustment (Shavitt, 1989, 1990; Greenwald, 1989), which is associated with the strategic sense of public self (which includes avoiding negative evaluations from significant others); and with the group sense of collective self (which seeks to meet the goals of important “approach” reference groups, and also to avoid the goals of important avoidance or rejected reference groups) (Eagly and Chaiken, 1993, pp. 484-5). The maintenance of self-esteem involves the protection and enhancement of the sense of self, and also the avoidance of self-abasement by rejecting products with negative imagery (Sirgy, 1982, pp. 289-90). Self-images, product-images and congruency theory Image congruency theory (Grubb and Grathwohl, 1967; Erickson and Sirgy, 1992; Kleine et al., 1993) provides an initial integrative framework (Figure 1) for understanding the potential relationships in symbolic consumption between product/brand meaning, consumers’ self-concepts and the audience. Under image

congruency theory, individuals select products and brands that are congruent with particular elements of their self-concept (actual or ideal) seeking self-consistency (Niedenthal et al., 1985). Sirgy (1982) argued that congruency theory would also predict which products and brands consumers would reject. Therefore, both approach and avoidance behaviours could be identified in the pursuit of self-consistency in relation to self-esteem. Sirgy (1982) identified four different states of interaction between value-laden product images and consumers’ self-perceptions: positive self-congruity and incongruity; and negative self-congruity and incongruity (see Figure 2). From a self-esteem perspective, under both negative self-incongruity and congruity, consumers will be motivated to reject negatively laden products in order to avoid self-abasement. In this paper we concentrate on negative self-incongruity, which describes consumers with a positive self-image who are motivated to avoid or reject negatively valued products.

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Self-regulatory system The self-regulatory system (Higgins et al., 1994) proposes that people will function with reference to either a desired (a positive reference value) or an undesired (a negative reference value) end state. Higgins et al.’s (1994) framework suggests there are two means by which the discrepancy between actual and desired states can be reduced (discrepancy reduction system) and also two means by which the discrepancy between

Figure 1. Relationship of the consumption of goods as symbols to the self-concept

Figure 2. The effects of self-esteem on purchase motivation

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the actual and undesired end state can be amplified (discrepancy amplifying system). The differences between the four conditions (shown in Table I) lie in the focus for individuals’ behaviour – whether the desired end state provides the main impetus for behaviour (a positive drive) or whether this is provided by the undesired end state (a negative drive), although the two systems may lead to very similar behaviours Both systems (i.e. a positive/promotion and a negative/prevention outcome focus) are context-driven and are relevant for most individuals at different times, yet one or the other will be most prevalent or most often activated (Higgins et al., 1994). Individuals are viewed as selectively focusing on best or worst case outcomes for an event or a situation, depending on whether they tend to adopt a best-case or worst case perspective (Markus and Nurius, 1986) and seek to eliminate negative states, as opposed to the achievement or maintenance of positive states (Karniol and Ross, 1996). In order to gain a fuller picture of the motivational effects of end states, it is useful to consider the motivational properties of possible selves, whereby outcomes become personalised representations. Possible selves, negative possible selves and user stereotypes We extend Grubb and Grathwohl’s (1967) framework (Figure 1) to include the concept of possible selves, which provides a way of considering the motivational social adjustment functions of social identity, the rejected self and negative symbolic consumption. Postmodernism has led many researchers to question the very notion of the self, with recent theories emphasising the need to incorporate multiple selves into our understanding to appreciate its relational nature (Gergen, 1991). Kleine et al.’s (1993, p. 210) research challenges the notion of a global self and argues instead for a multi-layered or multi-dimensional self: “The significance of a product to consumers depends on which of their ideas it enables and the importance of that identity – what it contributes to their overall sense of self”. Possible selves incorporate this view of the self as a dynamic structure involving a multiplicity of selves (Cantor et al., 1986) or end states. These selves provide consumers with goals, aspirations, motives, fears and threats and the self-relevant information that individuals need to organise and give direction to their lives (Markus and Nurius, 1986). The motivational function of possible selves focuses on the encouragement of approach and avoidance behaviours perceived to be relevant to the possible self (Morgan, 1993). In addition, possible selves provide an evaluative and interpretive context for the current view of the self (Markus and Nurius, 1986). One of the key contentions (Markus and Nurius, 1986) is that people are motivated to approach desirable possible selves whilst also avoiding undesirable ones. Negative or rejected Valence of end state as a reference point Direction of means Desired (discrepancy reducing) Undesired (discrepancy amplifying)

Table I. Summary of regulatory forms as a function of valence of end state as a reference point and direction of means

Approach

Approaching matches to desired end states

Approaching mismatches to undesired end states

Avoidance

Avoiding mismatches to desired end states

Avoiding matches to undesired end states

Source: Higgins et al. (1994, p. 277)

possible selves, therefore, function as (dis)incentives for future behaviour, representing selves to be rejected or avoided (Markus and Nurius, 1986), and can include the undesired self (Ogilvie, 1987). Various aspects of negative and rejected selves can be considered to be important reference points or “implicit standards” used by individuals to assess how close or distant they are from being like their most negative images of themselves (Ogilvie, 1987; Eisenstadt and Leippe, 1994). The symbolic meanings of products are often linked to stereotypes associated with the personal images of the product-user (Sirgy et al., 1997). Stereotypes are: “Shorthand categorisations of experience which are part of our shared understanding of the social world” (Jagger, 1998. p. 5) or “. . . sets of fixed ideas and beliefs held by members of one or more groups about members of another group” (Tajfel and Fraser, 1978, p. 427); and are formed and maintained through a variety of cognitive and motivational processes (Hilton and Von Hippel, 1996). Product-user imagery is important in self-congruity theory (Sirgy et al., 1997) and helps give shape and meaning to consumers’ possible selves. Advertisers and marketing professionals use the notion of product user image and congruency to position brands (Sirgy et al., 1997), creating “typical consumers” for their products through the use of role models in advertising. Individuals can also engage in self-stereotyping, which involves perceiving oneself to be a member of a group and consequently behaving in line with this social identity (Biernat et al., 1996). Different identities – and therefore positive and negative stereotypes – will be salient at different times, and this will affect individuals’ behaviour in certain situations (Shih et al., 1999). Conformity to group norms will be largely dependent upon the relevant social identity that is salient at the time (Reicher and Hopkins, 1996). Avoidance groups function as negative “anchors” for consumers (Englis and Solomon, 1995), and can be compared with Ogilvie’s (1987) undesired selves. “Out group” members are not only perceived as possessing less desirable traits than “in group” members, but are seen to be more homogeneous as well (see Hilton and Von Hippel, 1996 and Haslam et al., 1996). A possible explanation for this could be that people tend to know more in-group members, and have more information about “their own”, and therefore are able to perceive them as heterogeneous, noticing subtle differences. Negative stereotypes are considered to be particularly powerful. Motivational factors lead to the rapid confirmation yet the slow or begrudging disconfirmation of a negative expectancy (Hilton and Von Hippel, 1996) Conceptualisation In Figure 3 we present a conceptualisation that elaborates and extends Grubb and Grathwohl’s (1967) framework in a number of ways. Firstly, we extend “the audience” to include both approach and avoidance significant others or reference groups. Avoidance reference groups (or out groups) can function as threats, as consumers negotiate their identities through the consumption of products and brands, rejecting those products identified with negative imagery. They (avoidance groups) tend to be perceived in a more stereotypical and less accurate manner (Englis and Solomon, 1995, p. 11) and can generate “oppositional brand loyalty” which delineates what the brand is not, and who the brand community members are not (Muniz and O’Guinn, 2001). Secondly, we elaborate on the self-concept to include possible selves, capturing the sense of positive and negative selves and the associated positive and negative self-imagery. Thirdly, we incorporate the protection and enhancement of the sense of

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Figure 3. Relationship between possible selves, positive and negative symbolic meanings and the pursuit of self esteem within the self-concept

self, and the avoidance of self-abasement (Sirgy, 1982) as key motivational drivers; linking these with Higgins et al.’s (1994) end states, to identify approach and avoidance behaviours which can be associated with social distinction/autonomy; and social identification/affiliation. The conceptualisation we present in Figure 3 does not represent a causal set of connections to be tested, but rather a series of analytic relationships (Miles and Huberman, 1994, p. 28) to be explored. Having recognised the importance of understanding the negative inferences associated with products via user stereotypes, we can now identify three research questions: firstly, how do consumers invest products and brands with negative symbolic meanings; secondly, how do consumers use the rejection of products and brands to pursue and protect their self-esteem, whilst also avoiding self-abasement; thirdly, how can fashion marketers and retailers encompass an understanding of consumer motivational drives and negative symbolic consumption into their integrated marketing strategies? Methodology This research was exploratory in nature and used qualitative methods – appropriate for studies that focus on the constraints of the everyday social world (Denzin and Lincoln, 1998). Qualitative methods usually feature richly descriptive accounts of individuals’ attitudes, perceptions, beliefs, views and feelings, and the meanings and interpretations are combined into a framework (Hakim, 1994, p. 26). The emphasis of qualitative data on people’s “lived experience” (Miles and Huberman, 1994, p. 10) makes it particularly useful for exploring new research areas such as negative symbolic consumption. Sample Qualitative research typically focuses in depth on a relatively small sample (Patton, 1990) and facilitates the generation of more relevant knowledge than a large sample

would at an early exploratory stage. The sampling frame was a mixture of convenience, purposive (Patton, 1990) and snowball sampling. Bertaux and Bertaux-Wiame (1981) advise sampling until saturation point – that is until you are confident that you have a picture of what is going on and are able to produce an appropriate explanation for it (Mason, 1996). A total of 15 consumers were initially recruited because of their suitability in terms of age, gender, life experience and interests. They were then asked to select an acquaintance of the same gender, with similar attitudes to clothing, fashion retailers and brands. The thirty participants involved in the study were all within the 18-30 age group. There were approximately equal numbers of men and women and they were from a variety of professional occupations (following Murray, 2002) including public, commercial and charity organisations (except for the two youngest who at ages 18 and 19, were students). All participants were British; the majority were white Caucasian, two women were from Afro-Caribbean parentage and one woman was of mixed race. Data collection An initial pilot study was carried out, using two mini-discussion groups (each involving four same sex participants) to check the effectiveness of the research design. For the main study, in-depth consumer interviews were conducted in friendship pairs. These paired interviews were loosely structured, representing “conversations with a purpose” (Burgess, 1984; Mason, 1996) following what Robson (1993) termed “fluid agendas”. Friendship pairs were employed because these types of interviews – with individuals sharing certain common characteristics – provide an effective means through which to ensure a more natural setting within which to negotiate identity talk (Hunt and Miller, 1997). “Joint interviewing” also helps to establish rapport and create an atmosphere of confidence (Edgell, 1980; Arksey, 2000), and also to reveal the diverse kinds of knowledge held by each person (Seymour et al., 1995; Arksey, 2000). Typically, the interviews began with general questions focused on participants’ interest in clothing – for example what clothing they purchased and how often. The discussion became gradually more specific, focusing on personal style, image and participants’ thoughts regarding the communicative abilities of clothing (incorporating visual stimuli). All questions were open and for much of the time the ordering of topics were decided on the basis of the discussion (with a guide employed to ensure consistency across interviews). Data analysis All interviews were recorded and transcribed in their entirety. Analysis was ongoing throughout the data collection (Robson, 1993) with notes and transcripts reviewed throughout, as recommended by Patton (1990). The transcripts were analysed through reading and re-reading, noting patterns and themes in a search for “patterns and recurring organisations” (Wetherall and Potter, 1988, p. 177; Thompson and Haytko, 1997) allowing earlier readings to inform later readings. This intuitive process was supplemented by Spiggle’s (1994) framework of categorisation, abstraction, comparison and integration as the fundamental analytical operations. Spiggle (1994) encouraged the development of categories that were grouped into more general conceptual classes through abstraction. The differences and similarities were then

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explored through comparison, and the data was finally integrated and reported within the context of the conceptual framework (Figure 3). Findings and discussion The presentation of the findings will focus on exploring consumers’ use of approach and avoidance strategies (and the associated end states) in identity negotiation. We begin with a series of general observations from the data; and then examine a number of themes related to the conceptual framework: clothing as a communicative device; identification and distinction and the associated approach and avoidance strategies; distinction, avoidance and consuming with primary reference to a negative drive; and identification, approach and consuming with reference to a positive drive. The general findings suggested that consumers’ drives were fairly fluid or flexible. The motivation of self-esteem functioned to encourage and discourage individuals from consuming certain items, brands and styles of clothing. Our primary focus was on the style of clothing that participants consumed (or actively avoided). Although references to brands were included, they did not provide our specific focus and there was considerable variation in attitudes to branding, with women seeming less dependent (than men) on brands for identity communication. Consumers used strategies of approach and avoidance with reference to personalised desired and undesired end states or possible selves. The findings suggested that all consumers referred to undesired end states at times, in an effort to maintain self-esteem, but that some consumers were more prone to these effects than others. Participants acknowledged that a consideration of the repercussions of consumption (in the form of possible selves or end states) played a major part in their clothing choices. Underpinning the findings was the concern by consumers to present themselves in the best or the “most suitable” light via their clothing choices. There were also a number of outside influences on consumers’ motivational drives and tendency for approach or avoidance strategies. Even consumers who considered themselves to dress solely for themselves and with little regard to the opinions of others (e.g. “anti-fashion”) experienced some situations where they became more likely to conform to the expectations of others. Clothing as a communicative device The findings confirmed earlier research (Belk et al., 1982, 1984; Elliott, 1994; Freitas et al., 1997; Holman, 1981), which indicated that clothing played an important role in identity creation and symbolic consumption. Clear support was provided for the ideas of Georg Simmel (1904), who saw two motivating functions for fashion – that of social identification (approach) and distinction (avoidance) (see Figure 3) (Gronow, 1997, p. 77). The participants in the study were clearly able to articulate negative feelings towards avoidance groups that they would not wish to be associated with (distinction), in addition to those with which they would like to be identified. Consumption stereotypes provided an appropriate and important means to explore the meanings that clothing encompassed for consumers. Although the term “stereotype” suggests universally defined categories, participants acknowledged that different social categories of consumers would interpret clothing in diverse ways (Belk et al., 1982), offering different “readings” (Elliott and Wattanasuwan, 1998), and items might be rejected on the basis of these different “readings”. It is clear that some of the

“consumption stereotypes” evoked by consumers were at odds with the images that marketers brought to the products, and this supported observations made by Ligas and Cotte (1999). There were regional meanings (e.g. “Essex boys”) and lifestyle classifications (e.g. the term “tart”), which were unlikely to be deliberately communicated by advertisers. This divergent symbolism supported Kaiser et al.’s (1985) suggestion that varying interpretations of clothing symbols resulted from individuals’ diverse social experiences. Symbolism could also be associated with private experiences (or sentimental values) which would be invisible to observers (Campbell, 1996), and participants sometimes became attached to items of clothing that were of no obvious value to others. Identification and distinction: approach and avoidance strategies Participants used the symbolic qualities of clothing to satisfy two opposing functions: social identification with (approach) groups, and distinction from less desirable (avoidance) groups, providing support for Simmel (1904) (see Figure 3) (Gronow, 1997). Social comparison, affiliation, conformity and autonomy were important themes in the discussions. Participants’ comments reflected the search for affiliation, by meeting the expectations of significant others, and achieving the goals of important reference groups. A sense of two different end states emerged, indicating consistency with Higgins et al.’s (1994) self-regulatory system, and the approach and avoidance of various end-states or possible selves (Markus and Nurius, 1986). Existing research largely ignores the influence of undesired end states on consumption, yet the consumption activities of the majority of consumers in our study seemed to be predominantly informed by the motivation to avoid consuming (or being identified with) negative images, rather than reflecting attempts to achieve a positive image (implied by positive congruency): The negative is bad because you know that you look bad and people talk about it so you aim for the positive so you feel good and know that people will compliment you, so it is like shying away from one and trying to achieve the other . . . they are very close together, I think there is a fine line between them, you don’t buy anything that you know you look bad in. You will ask your friends’ advice and you do it for the very reason that you don’t want to go out looking liking yesterday’s news do you? (Sara, age 25). I think it is subconscious that you make yourself look positive, but it is conscious that you definitely don’t make yourself look negative . . . I think you definitely go out and you know that there are certain things that you don’t want to wear because you don’t want to project yourself in a negative way and I think you consciously avoid those things when you go out shopping (Lisa, age 24).

There was a tendency for participants to operate with primary reference to either a positive or a negative end state, yet the motivational influence of the end state was fairly fluid. This finding is consistent with the research of Higgins et al. (1994, p. 285) who suggested individuals might be orientated towards a particular strategy (i.e. approach versus avoidance), yet all individuals were likely to possess both systems, and temporary changes in circumstances could lead to the use of alternative strategies. Marketers therefore need to be able to identify the circumstances – buying situations, shopping environments or reasons for purchase – which are likely to encourage one system over the other.

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Distinction and avoidance: consuming with primary reference to a negative drive The majority of participants in the study seemed to consume with primary reference to a negative drive. This meant that participants’ primary concern and the way in which they maintained self-esteem was through ensuring that their dress could not be interpreted negatively. Participants who consumed with reference to a negative drive sought to avoid censure, played it safe and attempted to remain inconspicuous by avoiding standing out from the crowd or competing for status. These concerns reflected the view that wearing the “wrong” item was likely to receive a stronger reaction than wearing the latest or the “best” (Wilk, 1994). Many of the participants in this study interpreted what they termed “trying too hard” negatively, and this links with Wilk’s (1995) participants who criticised products that were too “flash” or exclusive: . . . If you are seen negatively it is like rejection . . . being seen as not fitting in or being rejected or whatever . . . you are accepted if you are OK, you are middle of the road, you are totally accepted you are not just making fashion statements . . . (Chloe, age 25).

Consumers used words like “cautious”, “not brave”, “safe”, “uncontroversial” and “simple” to describe their clothing and wore outfits they hoped would not (and could not) be interpreted negatively: . . . I think I wear quite simple clothes, I don’t think there is anything that I think people would make assumptions that I would consider to be negative or a bit controversial about me . . . (Penny, age 30). My clothes are quite simple, they are not outrageous in any way so I am certainly not striving to be individual (Katherine, age 27).

There was also the suggestion that groups of friends would tend to dress in a similar way – again reflecting a (conscious) concern not to “stand out”: I think when you are with your mates you don’t really want to be individual anyway, you want to be all the same I think (Patrick, age 27). . . . You don’t want to stand out . . . it is comfortable in the crowd isn’t it? (Dean, age 27).

An important aspect of affiliation was consumers’ concern with fitting in with their wider surroundings, and the people around them: . . . If you are looking at everyone and they are wearing suits, shirt and tie and you are standing there in a pair of jeans with a pair of trainers on, then you are not going to feel very confident at all . . . (Patrick, age 27).

Identification and approach: consuming with reference to a positive drive Consumption with reference to a positive drive (ideal self/ideal end state) was less common amongst the participants, although some exhibited characteristics that suggested this positive drive could be prevalent at times. A positive drive was associated with personal characteristics such as individuality, confidence and a high interest in clothing. The vast majority of participants in this research did not classify their dress sense as “individual”. However, they were able to give examples of people they considered to be more individual and more likely to dress towards an ideal or positive reference point (positive drive). Those consumers who dress to satisfy a

positive drive are likely to be more fashion conscious, often fitting in with current norms. However, somewhat paradoxically, as their style is more “cutting edge”, they are considered by others to be more individual in their style of dressing: . . . If someone is wearing retro-ish sort of style clothes, maybe they are not quite but sort of . . . it says . . . it is kind of rejection of fashion in a way at the same time as being quite fashionable . . . I think there is enough ambiguity in there to make that person look sort of almost interesting (John, age 26).

Consumers who dressed with reference to a positive drive were also likely to be fairly at ease with themselves, and their selection of clothing provided an opportunity to make a positive statement about who they are (enhancing their self esteem). This was in contrast to those who consumed with reference to a negative drive who functioned with regard to the possible negative effects if they misjudged a situation and “got it wrong”: . . . You can spot someone walking along the street and they have got that flair because they have added something different and because they have taken whatever it is from the shop and they just carry it differently. They look individual; you can just spot someone who has got fashion sense I think that is individual. To me an individual can manipulate fashion to look individual. I haven’t got that talent so I do conform (Sara, age 25).

However, consumption with reference to a positive drive or positive end state was not confined to consumers who were interested in current fashions. One participant, Sam, dressed in an individual way, not fitting the mainstream “fashion ideal”. He seemed to dress with regard to a positive ideal, yet was not concerned with current trends; in fact, he might be more accurately termed “anti-fashion”: . . . In the morning when you are going into London on the train or tube and you have got all the business people and of course they are wearing what they are wearing because it is what is accepted in the business world, dark suits and stuff. But once or twice when I have headed into London with grey flares and a green smallish jacket and red shirt and blue tie which is tied so it is really long, and I have had my hair down or tied up, you know, I have really stood out, and people . . . standing right up near me and laughing, so they would obviously never wear anything like that (Sam, age 19).

Sam’s attitude to dress suggested he functioned with regard to a positive drive in the sense that he wore what he wanted to wear, rather than considering the reactions of others. Yet his behaviour also differentiated him from fashion leaders (Goldsmith et al., 1996). He often wore ripped clothing and described how he had deliberately flouted the uniform rules at the sixth form college he had just left. There is little doubt that he would not have dressed or worn his hair in the way that he did if he wanted to merge into the background. Generally all of the participants were able to think of someone they knew whom they felt dressed with regard to a positive drive, but conformity, affiliation and playing it safe and merely maintaining self-esteem seemed to be the primary motivation for most consumers. Managerial implications for fashion retailers It is important for marketers to understand when the rejection of products and brands results from distastes (distinction), and when it reflects the constraints that operate on consumers’ choices (Hogg, 1998), as each would require different managerial action.

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Constraints on clothing purchase could reflect financial concerns, the accessibility of clothing stores and consumers’ body size and shape. This corroborates Campbell’s (1996) point. He suggests that consumers are not always in a position to make a full choice regarding the clothing that they wear. McCracken and Roth (1989) view poverty and isolation as presenting potential limitations on the access to code information, as well as the lack of economic resources to purchase the goods and access to the necessary outlets. The findings suggest self-esteem is a powerful motivator for consumer behaviour and is sought in two ways, via the approach towards an ideal, or the avoidance of an undesired, end state. Consumers’ perception of whether the main emphasis of their consumption behaviour is to “play it safe” or whether they like to dress in an individual way would seem to be important for marketing practitioners. It may be that everybody does both (approach the positive and avoid the negative) to varying degrees in different situations. It is clear that reaching an understanding of the function of the negative drive (and negative end states) and recognising the importance of the negative drive/end state for consumption is as important as understanding how consumers attempt to approach an “ideal self”, the subject of much consumer behaviour research (e.g. Erickson and Sirgy, 1992; Dolich, 1969). If, as the research findings suggest, the majority of consumers function with regard to a negative drive, it would benefit marketing managers to develop marketing campaigns that recognise and appeal to this drive. Marketing managers may choose to use “negative associations” and avoidance groups (Englis and Solomon, 1995) as a means to build brand loyalty amongst their customer base. Integrated marketing strategies should therefore attempt to achieve two things. Firstly, positive associations should be made with the brand or product and secondly, advertising could be used to encourage consumers to identify negative reference groups and negative user imagery with competitors, thus promoting affiliation with the brand/product or company and a clear distinction from non-consumers of the product or brand. This presents a challenge for marketers, as different groups of consumers will employ very different positive and negative associations. It is also useful for marketers and retailers to consider the situations and circumstances that encourage the prevalence of a particular drive (i.e. whether consumers will tend to focus on positive or negative outcomes). Examples are public situations versus private situations, work versus leisure, formal versus informal occasions and so forth. Products (and in this case clothing) can then be produced, marketed and sold in such a way that fits with these circumstances and the associated drive. The working environment was found to be particularly relevant to the participants in this study and was repeatedly cited as a situation in which certain expectations about dress codes existed, which influenced the drive employed. For example, a consumer who works in an office may dress with reference to a negative drive; yet in his or her free time wear fairly unusual clothes, reflecting a positive drive. Other examples of “conformity-inducing” situations were wearing a suit for a job interview, wearing formal clothing to a wedding or funeral, or a uniform imposed at work or at school. In many situations consumers dressed how they wanted to but within certain boundaries (e.g. “smartly for work”), effectively meaning the individual is conforming but sometimes within fairly broad boundaries. Support was provided for the importance of the “normative” (Miller, 1999), in understanding consumers’

evaluations of clothing; and the dialectic between different “selves”. Breaking from “local” norms was interpreted as potentially risky and could lead to “avoidance” behaviours (Englis and Solomon, 1995). Retailers should consider different situational effects and understand how responding to these differences will help them to cater for their customers’ every need. In their positioning strategies, fashion retailers (or retailers of any symbolic goods) should recognise their appeal in terms of customers’ concern with affiliation or autonomy and how this relates to consumers’ end states or possible selves. This should be reflected right through the supply chain, from the design of the clothing/product to the tools (advertising, celebrities, etc.) that are used for promotion, to the sales environment and the manner in which the sales team respond to customers. It may be that some stores and product categories need to make more use of shop-floor assistants in helping consumers to make decisions – perhaps encouraging consumers to experiment with different items of clothing or reassuring them that the style/product they have chosen is “suitable” for them. Consumers’ reliance on positive and negative drives may be fluid in the sense that even the most conforming individual may sometimes fancy breaking free from the “norm”. However, for retailers their image is more fixed. A retailer that is currently perceived as stocking highly conforming product lines (appealing to consumers functioning on a negative drive) would find it difficult to switch to selling highly individual and high fashion designs. A research strategy that incorporates the framework in Figure 3 and recognises the importance of consumers’ possible selves/end states and approach and avoidance strategies, should be valuable for companies assessing the effectiveness with which they cater for markets, and may provide a useful tool for companies embarking on re-branding strategies. Conclusion For many consumers in this study, clothing selection entailed a delicate balancing act. It was of utmost importance that consumers should not upset this balance in the attempt to create a positive image for themselves. The safest option was to avoid projecting a negative image (employing a negative drive) thus ensuring the maintenance of self-esteem. We would argue that if marketers are able to understand how consumers invest products and brands with negative meanings; and also how consumers associate these negative meanings with their rejected selves, they will be much nearer to understanding and managing the impact of negative symbolic consumption in the market place. The framework provided in Figure 3, along with an appropriate research strategy, should help marketing managers to be better equipped to understand and predict the rejection of products and brands. With this clearer understanding of negative symbolic consumption we can then begin to generalise the wider implications for marketing strategy of the symbolic bases for the rejection of other goods and services. Limitations The emphasis of this study was on conceptualisation and the overall emphasis was on reaching understanding rather than generalisation. As the exploration of this area is in its initial stages, a small, yet in-depth empirical study was considered to be the best means by which to draw out the main themes and concentrate on theory building.

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Interviews were conducted in friendship pairs because of the benefits this could offer in terms of the stimulation of discussion of a potentially difficult and fairly abstract topic. Individual interviews would have provided more intimidating surroundings, and might have proved less conducive to exploring the topic. It was also considered important to address the social contexts within which meaning is created, a point that Ritson and Elliott (1999) claim is often missed with consumer research. However, the social interaction of “paired” interviews, although promoting discussion, could potentially have encouraged careful self-presentation and impression management by the participants. It is acknowledged that the comments of the participants could have been influenced by past, present, or the possibility of future interaction with their friendship partners. However, there did not appear to be any strained or power relationships at work, and all the participants seemed genuinely open and candid, during the course of the interviews. The findings are limited to the population under consideration. However, through the development of themes and examples, the conceptualisation is intended to be more far reaching than individual observations. It is acknowledged that more experiences and findings would have been forthcoming if participants with wider ranging experiences had been deliberately sought. Although age was deliberately kept within a lower and upper limit in order to gauge the experience of a particular segment of the population, the participants represented a wide range of backgrounds. This range of experience was considered sufficient for the purposes of an exploratory study. Finally, at present the findings are limited to the product category under study. However, clothing is a very important category, and provides an important means by which to gain a greater insight into the self, benefitting additional areas of study. The findings are also likely to be adaptable and relevant to product categories that share similarities with clothing – for example other fashion categories such as home furnishings, footwear, textiles – and also categories where product symbolism is especially high – for example cars, mobile phones, travel and so forth. A similar process with other product categories could refine the conceptualisation, and explore its relevance to other categories for which considerations regarding identity negotiation are paramount. Future research It is clear this study has focused on a topic ripe for exploration and theoretical advances. It has been possible for the research to clarify a number of issues associated with identity negotiation and the rejection of products. In addition a conceptual framework has been suggested, which should be useful for future studies. Clearly a great deal of research remains to be conducted in order that we can understand the complicated relationship that consumers have with their goods (or those goods that they reject), but this research has made an important contribution. We do not claim to answer all of the questions that have emerged from the investigation. Rather it is hoped that the study has provided “food for thought” and a sense that the combined motivational effects of self esteem, possible selves, consumers’ associated drives and the rejection of consumption goods are topics worthy of future research. Future research could investigate a greater range of consumption situations: such as the implications for consumers’ possible selves and sense of identity when clothing choices are made by significant others. It became clear that a proportion of male

participants’ clothing was bought for them by their partners, or their partners would accompany them shopping. Sometimes the possible selves of most significance for consumption decisions may have been those held by the partner or friend on behalf of the participant – this would provide an interesting topic for future research. It would also be useful for research to involve different ages of respondents. The indication from the young adults in this study was that their approach to image and consumption had changed considerably over their lifespan. It would be interesting to conduct a study with a much older or younger selection of respondents and talk through the same issues with them, which would be likely to reveal a whole range of issues and dilemmas. Research could usefully focus on a small sample of respondents following their changing requirements through the aging process (incorporating the likely changing context of their consumption during the lifespan). In order for researchers (and marketing professionals) to understand today’s consumer, it is important that consumers are not considered to be static beings that “are what they are” but considered as products of their surroundings. Note 1. The authors acknowledge the important issues raised by Holt’s (1997, 2002) papers. References Arksey, H. (2000), “Collecting data through joint interviews”, Social Research Update, No. 15, available at: www.soc.surrey.ac.uk/sru/SRU15.html Belk, R.W., Bahn, K.D. and Mayer, R.N. (1982), “Developmental recognition of consumption symbolism”, Journal of Consumer Research, Vol. 9, June, pp. 4-17. Belk, R., Mayer, R. and Driscoll, A. (1984), “Children’s recognition of consumption symbolism in children’s products”, Journal of Consumer Research, Vol. 10, March, pp. 386-97. Bertaux, D. and Bertaux-Wiame, I. (1981), “Life stories in the bakers’ trade”, in Bertaux, D. (Ed.), Biography and Society: The Life History Approach in the Social Sciences, Sage, London. Biernat, M., Vescio, T.K. and Green, M.L. (1996), “Selective self-stereotyping”, Journal of Personality and Social Psychology, Vol. 6 No. 71, pp. 1194-209. Burgess, R.G. (1984), In the Field: An Introduction to Field Research, Allen & Unwin, London. Campbell, C. (1996), “The meaning of objects and the meaning of actions: a critical note on the sociology of consumption and theories of clothing”, Journal of Material Culture, Vol. 1 No. 1, pp. 93-105. Cantor, N., Markus, H., Niedenthal, P. and Nurius, P. (1986), “On motivation and the self-concept”, in Sorrentino, R.M. and Higgins, E.T. (Eds), Handbook of Motivation and Cognition: Foundations of Social Behaviour, Wiley, Chichester. Denzin, N.K. and Lincoln, Y.S. (Eds) (1998), Collecting and Interpreting Qualitative Materials, Sage, London. Dittmar, H. (1992), The Social Psychology of Material Possessions, Harvester Press, Hemel Hempstead. Dolich, I.J. (1969), “Congruence relationships between self-images and product brands”, Journal of Marketing Research, Vol. 11, pp. 80-4. Eagly, A.H. and Chaiken, S. (1993), Psychology of Attitudes, Harcourt Brace Jovanovich, Fort Worth, TX.

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Fashion clothing consumption: antecedents and consequences of fashion clothing involvement Aron O’Cass Newcastle Business School, The University of Newcastle, Callaghan, Australia Keywords Fashion industry, Consumption, Consumer behaviour

Fashion clothing consumption

869 Received March 2002 Revised November 2002 and October 2003

Abstract For many years fashion clothing has been an area of interest in consumer research. This study examines the effect of materialism and self-image product-image congruency on consumers’ involvement in fashion clothing. It also examines purchase decision involvement, subjective fashion knowledge and consumer confidence. Data were gathered via a self-completed mail survey, resulting in 478 responses being returned. The results indicate that fashion clothing involvement is significantly effected by a consumer’s degree of materialism, gender and age. Further, it was found that fashion clothing involvement influences fashion clothing knowledge. Finally, the results indicate that fashion clothing knowledge influences consumer confidence in making purchase decisions about fashion.

Introduction Many modern societies are characterised by a strongly held belief that to have is to be (Dittmar, 1992). Related to this is the view that life’s meaning, achievement and satisfaction is often judged in terms of what possessions have or have not been acquired (Belk, 1985; Richins, 1994). This is related to the benefit obtained by an individual’s relationship with their possessions. Thus, individuals often define themselves and others in terms of their possessions. Possessions have come to serve as key symbols for personal qualities, attachments and interests and Dittmar (1992, p. 205) has said that “an individual’s identity is influenced by the symbolic meanings of his or her own material possessions, and the way in which s/he relates to those possessions”. A possession that holds a significant position in society is fashion clothing. Fashion clothing has been described as possessing something approximating a code. Davis (1994) argued that in the context of this code that clothing styles and the fashions that influence them over time constitute a code, however, such a code is quite different from the codes in others areas or languages. Whilst drawing such an analogy, Davis (1994) also identified that, in reality, it is a code that is ever shifting or in process. Taking the notion of possessions and how individuals attach importance to them, this study explores the relationship between consumers gender, age, level of materialism, fashion clothing involvement and fashion knowledge as depicted in Figure 1. It also looks at consumer confidence as a consequence of involvement in and knowledge of fashion clothing. Overall, the study explores the view that materialism, gender and age are important antecedents of consumer involvement in fashion clothing and that fashion clothing involvement is an antecedent to subjective knowledge of fashion clothing. This line of reasoning is then extended to seeing that fashion clothing involvement and knowledge of fashion are antecedents of consumers’ confidence in making fashion clothing related decisions. Understanding the antecedents and consequences of involvement in fashion clothing is important as fashion clothing

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occupies a focal position in the lives of many people and, as such, has both significant social and economic value in many societies. The focus on fashion clothing is significant because of both its economic value and significant social functions and meaning it provides in consumers’ lives. Fashion clothing involvement In an attempt to more fully understand the behaviour of consumers related to possessions, consumer researchers have often utilised involvement (Laurent and Kapferer, 1985; Mittal and Lee, 1989; Ohanian, 1990; Zaichkowsky, 1986). Previous research has sought to understand the ways in which consumers become involved with products and to understand the effect involvement has on various purchasing and consuming behaviours (Browne and Kaldenberg, 1997; Tigert et al., 1976; Traylor and Joseph, 1984). It has been argued that relationship marketing and how individuals ascribe specific meanings to products can be clarified by the construct of involvement. It is argued here that this is extremely applicable to fashion clothing. Involvement (product centrality) has been identified as being at the heart of the person-object relationship (O’Cass, 2000) and the relational variable most predictive of purchase behaviour (Martin, 1998; Evrard and Aurier, 1996). Relevant to this study is the view that fashion clothing involvement may be understood via consumer-fashion clothing attachment or relationships. In this study, involvement is viewed as being linked to the interaction between an individual and an object, that is a relationship variable. In the context of consumer activity and fashion clothing, involvement is defined as the extent to which the consumer views the focal activity as a central part of their life, a meaningful and engaging activity in their life. High fashion clothing involvement implies greater relevance to the self (O’Cass, 2000). Involvement has been discussed and utilised to examine fashion clothing in a number of prior studies (e.g. Browne and Kaldenberg, 1997; Fairhurst et al., 1989; Flynn and Goldsmith, 1993; Tigert et al., 1976) and, in reality, the importance of involvement in the domain of fashion clothing can be seen via the defining role of fashion clothing in society. Further, fashion clothing’s continual and cyclical nature implies people are often drawn into the “style” or fashion of the moment, and there are those who place a great deal of emphasis on their clothing. Contemporary fashion research indicates that consumers are often distributed across a wide range of fashion

consciousness and behaviours. Of particular note is the point that, the high fashion involved consumer has historically been important to fashion researchers and marketers (practitioners), because they are seen as the drivers, influentials and legitimists of the fashion adoption process (Goldsmith et al., 1999; Tigert et al., 1976). However, because fashion clothing means different things to different people, consumers’ form differing attachments to it, and an individual’s attachment may be quite different from their family or friends in intensity and nature. Understanding consumers varying attachments, how they form, are maintained and are influenced is of interest to consumer researchers (academics) and practitioners (managers) alike. Apart from examining fashion involvement, it is also relevant and important to examine antecedents and consequences of involvement. Antecedents of fashion clothing involvement Along with involvement, consumer researchers have shown considerable interest in values because they are argued to be an important influence on behaviour. In general, marketers are keen to explore the values that characterise consumption, and in this vein, a value that is becoming more prevalent in many western counties, particularly countries such as Australia, the USA and UK and the like, is materialism. Materialism is defined here as the importance people attach to owning worldly possessions (Solomon, 1996) and materialists place great importance on possessions. It appears to be a potentially important dimension of consumer behaviour because of its influence on forming attachments to possessions. For example, O’Cass (2001) has indicated that Australia’s growing preoccupation with possessions is reflected in such consumption values as shop till you drop and he who dies with the most toys, wins and the rise in credit card usage and consumer debt. This does not imply that every consumer is materialistic, as there are significant differences between individuals’ prioritisation of and attachment to possessions (Richins, 1987). Having stronger materialistic values has been associated with using possessions for portraying and managing impressions (Belk, 1985) and with an understanding by individuals that possessions serve as a communication device or signal to others (Douglas and Isherwood, 1979). Materialism, may, therefore, represent a key variable in the development of a consumer’s involvement with products, particularly fashion clothing. On this issue Browne and Kaldenberg (1997) make an explicit link between materialism and involvement. This argument is particularly relevant in the context of fashion clothing, as it allows the fulfilment of values such as acquisition, happiness, etc. and assists in portraying acceptable images. Fashion clothing as possession may be seen for its role as a code and as such this materialism-consumption nexus appears to be a significant issue, as materialists have been found to rely heavily on external cues, favouring those possessions that are worn or consumed in public places. The important aspects of possessions for materialists are utility, appearance, financial worth and ability to convey status, success and prestige. Such products are thought to include fashion clothing, because it is particularly susceptible to differences in consumption stereotyping, and therefore to differences in ability to encode and decode a range of messages. This suggests that consumers with stronger materialistic tendencies use clothing for impression management (Richins, 1994), leading to greater involvement. As such, consumers’ involvement in fashion clothing will be significantly effected by their degree of materialism, with more materialistic consumers’ being more involved in fashion clothing and therefore, it is hypothesised that:

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H1. Materialism will have a significant positive effect on fashion clothing involvement. Other consumer characteristics have also been identified as antecedents to involvement in various possessions, including both gender and age. For example, Tigert et al. (1980) argue that woman are more involved in fashion and Bloch (1981) argues that men more involved in cars. Gender related effects on involvement have also been identified by researchers such as Browne and Kaldenberg (1997) and Auty and Elliott (1998) who have shown that women are more involved in fashion than men. Further, Goldsmith et al. (1996) have shown that women more than men consider themselves more fashion innovative and it is considered here that this should as such extend to involvement. This is born out by the practical side of fashion with significant numbers of magazines targeting women and the numbers of fashion clothing stores who market solely to women. The conclusion could be drawn that fashion clothing has more of a feminine image and thus females will place it in a more central position in their lives and thus females will be more involved in fashion clothing than males. Therefore, it is hypothesised that: H2. Gender will have a significant negative effect on fashion clothing involvement. Age has also been identified as an important dimension in fashion clothing. Age differences or effects in fashion clothing attachment and usage are said to exist by Auty and Elliott (1998), Fairhurst et al. (1989) and O’Cass (2000). It appears that younger people in general place more emphasis on their appearance than older. This implies that clothing may occupy a more central position in the life of the young and as such younger people will be more involved in fashion clothing than older people. Therefore, it is hypothesised that: H3. Age will have a significant negative effect on fashion clothing involvement. Consequences of fashion clothing involvement Traditionally knowledge has been treated as a unidimensional construct, mostly referred to in the literature as product familiarity or prior knowledge of the object or stimuli. Essentially then in the context of fashion clothing, product knowledge is viewed as knowledge of brands in the product class and in terms of product-use contexts and product attribute knowledge, frequency of use and experience with fashion clothing (Johnson and Russo, 1981, 1984; Raju and Reilly, 1979; Lastovicka, 1979). Importantly, consumers vary greatly in their knowledge about fashion clothing and their degree of familiarity with it. Knowledge can come from product experiences, ad exposure, interactions with salespeople, friends or the media, previous decision-making or previous consumption and usage experiences held in memory. Studies have examined consumers’ familiarity and product knowledge in relation to information processing, learning of product attributes and brands (Johnson and Russo, 1981, 1984), attitude development, product knowledge and familiarity, choice of decision rules (Park, 1976; Payne, 1976; Tan and Dolich, 1981), and product satisfaction (Anderson et al., 1979), however, the literature addressing the relationship between fashion clothing involvement and subjective fashion clothing knowledge is minimal. There are few empirical works found in the literature regarding the nature of the relationship between product knowledge and product involvement. Except for studies

by Gill et al. (1988), Parameswaran and Spinelli (1984), Phelps and Thorson (1991), Zaichkowsky (1985), Zinkhan and Muderrisoglu (1985) and Sujan (1983), the literature has not empirically examined the relationship between involvement and product knowledge. Importantly, none examine the relationship between level of fashion clothing involvement and degree of subjective fashion knowledge. The existing literature is somewhat inconclusive and perhaps a little contradictory regarding the relationship between product involvement and product knowledge in general. There are those who have suggested that familiarity should be viewed as an antecedent to involvement (Zinkhan and Muderrisoglu, 1985), or as a component of it (Lastovicka and Gardner, 1979) or even as a consequence of it (Mittal and Lee, 1989). The relationship between involvement and product knowledge has also been suggested as an interactive (reciprocal) one (Gardial and Zinkhan, 1984). Interestingly, Zaichkowsky (1985) has examined the relationship between involvement and expertise and argued that involvement may be unrelated to expertise. With regard to fashion clothing knowledge, there are two potential methods for operationalising and measuring product knowledge. One is to measure product knowledge in terms of how much a consumer actually knows about the product. The other is to measure knowledge in terms of how much a consumer thinks or perceives they know about the product. The first approach is related to the objective knowledge structure of an individual held in long-term memory, while the second approach is based on and related to an individual’s subjective self-report on how much they think they know about the product. A fundamental question that arises in attempting to understand consumers is what do consumers know and what characteristics cause some consumers to perceive themselves to be more knowledgeable than others about fashion clothing and possess higher perceived expertise. The proposition is raised here that product knowledge has a number of key aspects; namely familiarity, experience and expertise. In a general sense one would assume that fashion clothing familiarity will result in consumers increased expertise and experience. In this regard, apart from examining central issues, such as memory, one can also look at the impact of constructs such as fashion clothing involvement on the development of fashion knowledge and expertise. Fashion knowledge is developed when consumers combine separate meaning concepts into larger, more abstract categories of fashion clothing knowledge. The perspective taken here is that the degree of a consumer’s subjective product knowledge (familiarity, experience and expertise) should be affected by their degree of involvement in fashion clothing and as such, it is hypothesised that: H4. Fashion clothing involvement will have a significant positive effect consumers’ perception of fashion knowledge. Importantly, product knowledge is not held by consumers with the same degree of confidence. Depending on the circumstances, the degree of confidence could reflect either certainty or uncertainty as to which judgment is correct or the best in that situation, or ambiguity as to the meaning of an attitude object altogether (Day, 1970; Zajonc and Morrisette, 1960). Confidence, in this context, represents a consumer’s belief that their knowledge or ability is sufficient or correct regarding fashion clothing. The degree of confidence a consumer has regarding their views or abilities to do with fashion clothing is important because it can affect the strength of the relationship between attitudes and behaviour and it can also influence the consumer’s susceptibility to attitude change strategies initiated by marketers of fashion clothing. The degree of

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confidence can also possibly affect the presentation of the offering and promotional content that the marketer targets consumers with. Howard and Sheth (1969) provided some initial insights into consumer confidence and Howard (1989, p. 40) proposed that the construct of confidence was: “the buyer’s degree of certainty that his or her evaluative judgment of a brand, whether favourable or unfavourable, is correct”. In the consumer behaviour literature, the confidence construct is used in two theoretically different ways. It has been used to refer to a buyer’s overall confidence in the brand (Howard and Sheth, 1969). It has also been used to refer to the buyer’s confidence in his ability to judge or evaluate attribute of the brands (Bennett and Harrell, 1975). Confidence is seen here to refer to the extent that the consumer has confidence in their ability to make the right choice in the context of fashion clothing. Thus, confidence rests on the perception of ability to make the decision and make the right decision and it is hypothesised that: H5. Fashion clothing knowledge will have a significant positive effect consumers’ confidence in making decisions about fashion clothing. Day (1970) proposed that a consumer who lacks interest in a stimulus object will not likely have the information or experience necessary to make a confident judgment. Most research on confidence has been related to the stability of preference (Day, 1970; Harrell, 1979) or the effect that confidence has on attitudes. Little research has focused on the degree of involvement and its effect on a consumer’s confidence related to a focal object or in their ability to make purchase decisions. The limited numbers of studies that have investigated the confidence-involvement relationship (see Parameswaran and Spinelli, 1984; Burton and Netemeyer, 1992) have, to a large extent, investigated this relationship in the context of voting behaviour. However, such a social psychological context for involvement is troubling because of the level of abstraction for such social issues as voting (Bloch, 1981). Another study to investigate the confidence-involvement relationship was by Harrell (1979) and used an industrial product and related the study largely to attitude-intent relationships and Chebat and Picard (1985) showed that involvement had a direct effect on confidence in both product and message, in that the more involved the consumer was, the more confident they were. A further link between involvement and confidence was alluded to in the work of Park and Lessig (1981), when they raised a theoretical proposition that consumers are likely to be more confident when they are more highly involved in a product. Overall, the extant literature on confidence and involvement suggests that one of the key outcomes of being involved in a product is perhaps that one would tend to be more confident in decisions or purchases related to that product or product class and it is hypothesised that: H6. Fashion clothing involvement will have a significant effect on consumers’ confidence in making decisions about fashion clothing. Research design A self-administered survey was developed and administered via mail as part of a larger study on fashion clothing, resulting in 478 surveys being gathered. Respondents came from a random sample of consumers drawn from a database containing 6,000 names from residents living NSW Australia. In total 1,000 names were randomly drawn from the list provided, with every sixth name being sent a survey. The questionnaire contained 15 items from the materialistic values measure of Richins and Dawson (1992).

Fashion clothing involvement was measured via 11 items from O’Cass’s (2000) product involvement measure. Fashion clothing knowledge was measured via Flynn and Goldsmith (1999) four-item measure of product knowledge and decision-making confidence was measured via three items from O’Cass (2000). All measures were six point Likert-type scales with poles from strongly agree to strongly disagree. The survey was pilot tested on a sample of students studying business and the results indicated that the instrument was psychometrically sound, with all measures surpassing minimum acceptable levels on all criteria (reliability, item-to-total correlations, factor structures). During the pilot test it was determined that by providing brand names caused some consumers to focus exclusively on the brand names and not fashion in general. Given that the study was about fashion clothing in general and not brand names instructions were placed into the survey identifying this point with instruction that: When you see the term Fashion Clothing you should think of Fashion Apparel; Apparel; Fashion Clothing; Seasonal Fashions in Clothing. This allowed respondents to developed their own notion of fashion clothing and did not restrict the identifier to a specific brand. Preliminary results The exact make-up of the sample was 6.2 per cent under 21 years of age, 21-30 age group constituted 25.8 per cent of the respondents, 31-40 group made up 36.4 per cent of respondents, 41-50 age group were 26 per cent of respondents and the over 50 years group constituted 5.6 per cent of the sample. Over 83 per cent of respondents were over the age of 25 and 70 per cent were over 30 years of age, and 46.4 per cent of the sample were male and 53.6 per cent were female. The percentages of respondents in each age grouping approximate the Australian population fairly closely. Before testing the hypotheses the properties of the scales were examined. The data were initially examined for dispersion and central tendency via means, standard deviation and skew and kurtosis, with the analysis indicating no anomalies in the data. Following this analysis the data were factor analysed using principle components with oblique rotation, followed by correlation and reliability estimates. The following provides a brief overview of the preliminary analysis, before discussing the results related to the hypothesis. All items loaded onto their appropriate factor and all factor loadings ranged between 0.44 and 0.90. All constructs showed acceptable reliability, with Cronbach’s alpha of 0.88 or greater. The analysis of the scales, showed that all the multi-item measure’s factor loadings were . 0.44 and all loadings were found to be statistically significant at p , 0:05. No cross loadings . than 0.3 were identified in the factor analysis. The results of the analysis of the materialistic values measure indicated that materialism possessed three factors related to possessions as defining success; acquisition centrality and acquisition as the pursuit of happiness with factor loadings between 0.44 and 0.75 as indicated in Table I, explaining 68 per cent of the variance. The reliability of the materialism measure was 0.88. The analysis of the fashion clothing involvement measure indicated that factor loadings ranged from 0.81 to 0.91 with 75 per cent of the variance being explained. The reliability of the measure was 0.98 indicating high reliability. Fashion clothing knowledge contained one factor explaining 82 per cent of the variance as indicated in Table I and factor loading between 0.86 and 0.95, and reliability of the measure was 0.93.Consumer decision-making confidence contained one factor explaining 91 per cent percent of the variance and factor loadings between 0.86 and 0.92, and the reliability was 0.89.

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Loadings Fashion clothing involvement Fashion clothing means a lot to me Fashion clothing is a significant part of my life I consider fashion clothing to be a central part of my life I think about fashion clothing a lot For me personally fashion clothing is an important product I am interested in fashion clothing Some individuals are completely involved with fashion clothing, attached to it, absorbed by it. For others fashion clothing is simply not that involving. How involved are you with fashion clothing? Fashion clothing is important to me I am very much involved in/with fashion clothing I find fashion clothing a very relevant product in my life Fashion clothing product knowledge I am very familiar with fashion clothing I feel I know a lot about fashion clothing I am an experienced user of fashion clothing I would classify myself as an expert on fashion clothing

0.85 0.91 0.88 0.89

0.92 0.95 0.91 0.86

Consumer confidence in fashion decisions I am confident I would choose the right brand of fashion clothing When considering fashion clothing for purchase I am confident that I would make the right choice I have confidence in my ability to make the best choice concerning fashion clothing

0.95 0.92

Materialism Factor 1. Acquisition centrality I usually buy only the things I needa I try to keep my life simple, as far as possessions are concerneda The things I own aren’t all that important to mea Buying things gives me a lot of pleasure

0.87 0.83 0.52 0.48

Factor 2. Possession as defining success I admire people who own expensive possessions (such as homes, cars and clothes) I don’t place much emphasis on the amount of material possessions people own as a sign of successa The things I own say a lot about how well I’m doing in life I like to own things that impress people I don’t pay much attention to the material objects people owna I like a lot of luxury in my life It is important to me to have really nice things (possessions)

Table I. Preliminary results for constructs

0.81 0.87 0.85 0.82 0.88 0.85

Factor 3. Acquisition as the pursuit of happiness I have all the things I really need to enjoy lifea My life would be better if I owned certain things that I don’t currently havea I’d be happier if I could afford to buy more things (possessions)a It sometimes bothers me quite a bit that I can’t afford to buy all the things I’d likea Note: a Indicates reverse scored items

0.86

0.78 0.59 0.70 0.72 0.55 0.55 0.64 0.72 0.77 0.75 0.76

Following this all items within each construct were then computed into composite variables to test the models. Forming composites is a generally accepted approach in consumer behaviour to test hypotheses (see O’Cass, 2000). To assess the discriminant validity, the arguments of Gaski (1984) were followed, which suggests that if the correlation between two composite constructs is not higher than their respective reliability estimate, then discriminant validity exists. The results indicated that using this criteria all reliability estimates (Cronbach’s alpha) were greater than their correlation. Following the preliminary analysis of the measures consideration was given to appropriate analytical techniques to test the hypotheses. Given the formulation of the hypotheses it was decided to use partial least squares (PLS) to analyse the data. PLS is a variance based general regression technique for estimating path models involving latent constructs simultaneously (Falk and Miller, 1992; Fornell and Cha, 1994; O’Cass, 2001). A systematic examination of a number of fit indices was used to assess the predictive relevance of the hypotheses (model), including R 2, average variance accounted for (AVA), regression weights and loadings (O’Cass, 2001). These indices provide evidence for the existence of the relationships rather than definitive statistical tests, which may be contrary to the philosophy of soft modeling (Falk and Miller, 1992).

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Results for H1-H6 The average variance accounted (AVA) for in the endogenous variable by the exogenous variables was.40 (or 40 per cent) and the individual values for R2 were greater than the recommended 0.10 (Falk and Miller, 1992) for all of the predicted variables as indicated in Table II. As all of these R 2 estimates were larger than the recommended levels, examination of the significance of the paths associated with these variables was also undertaken. To evaluate the significance of the individual paths the absolute value of the product of the path coefficient and corresponding correlation coefficient (Falk and Miller, 1992) is used. As paths are estimates of the standardized regression weights this produces an index of the variance in an endogenous variable explained by that particular path and 1.5 per cent (0.015) of the variance is recommended as the cut off point. In Table II all the paths exceed this criterion and the magnitude of the paths was appropriate. Also the bootstrap critical ratios are of the appropriate size (greater than 1.96), except for H6. The data suggests that, materialism effects fashion clothing involvement significantly, where in effect the stronger the materialistic tendencies of individuals the higher their involvement in the product. Also females and younger respondents were

Hypothesis

Path weight

Variance due to path

Fashion involvement Materialism Gender Age

H1 H2 H3

0.463 2 0.274 2 0.156

Fashion knowledge

Fashion involvement

H4

Decision confidence

Fashion knowledge Fashion involvement

H5 H6

Predicted variables

AVA

Predictor variables

R2

Critical ratio

0.23 0.07 0.04

0.30

3.83 7.27 3.86

0.739

0.55

0.55

31.46

0.617 0.078

0.35 0.03

0.32

10.07 1.31

0.40

Table II. Partial least squares results for the theoretical model

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more involved in fashion clothing. Also, fashion-clothing involvement leads to greater perceived knowledge of fashion clothing. Fashion clothing knowledge also positively effected consumer confidence in making decisions. Therefore, hypotheses H1-H6 are supported (even though H6 meet only one of the key benchmark levels). The path coefficient of an exogenous construct represents the direct effect of that variable on the endogenous variable and an indirect effect represents the effect of a particular variable on the second variable through its effects on a third intervening variable. It is the product of the path coefficients along an indirect route from cause to effect via tracing arrows in the headed direction only. When more than one indirect path exists, the total indirect effect is their sum. The sum of the direct and indirect effect reflects the total effects of the variable on the endogenous variable (Igbaria et al., 1997; O’Cass, 2001). Table III provides direct and indirect effects for the models. Table III indicates some strong indirect effects within the relationships between constructs. Discussion A major challenge facing involvement researchers lies not only in understanding involvement itself, but also understanding the role involvement plays together with other variables in guiding the formation of purchase and consumption patterns and experiences of consumers of fashion clothing. This challenge suggested the need to conduct research investigating not only involvement, but also involvement within a broader network. This study has revealed important findings through modelling fashion clothing involvement in a framework of related constructs as antecedents and consequences on involvement. This research has identified materialistic values as a significant contributor to an individual’s involvement in fashion clothing and purchase decision involvement. Thus, studying materialism at the individual level has permitted studying the interaction between materialism and fashion involvement. When we talk about consumers’ involvement in fashion clothing, we view it as a continuum from total attachment (or absorption) with fashion clothing and related activities (high involvement) to complete detachment or automaticity (very low involvement). Fashion involvement is always focused on a consumer’s interaction with fashion clothing as the stimulus in the marketplace. The more fashion clothing occupies a key position in the consumer’s life, the greater the involvement in a product such as fashion clothing. A key question in attempting to understand consumers’ and their purchasing and consumption related behaviour is how much do they think they know about fashion clothing. This extends into what characteristics cause some consumers to perceive themselves to be more knowledgeable and believe they possess high expertise and be

Table III. Direct and indirect effects

Independent

Mediating

Dependent

Direct

Indirect

Total

Materialism Gender Age Materialism Gender Age Fashion involvement

Fashion Fashion Fashion Fashion Fashion Fashion Fashion

Fashion knowledge Fashion knowledge Fashion knowledge Decision confidence Decision confidence Decision confidence Decision confidence

0 0 0 0 0 0 0.078

0.34 0.20 0.12 0.04 0.02 0.01 0.46

0.34 0.20 0.12 0.04 0.02 0.01 0.538

involvement involvement involvement involvement involvement involvement knowledge

more confident in their decisions. This study proposed a model that examined the impact of involvement on the development of product knowledge and perceptions of expertise consumers’ hold regarding a product such as fashion clothing and their ability to make decisions regarding fashion clothing. On this issue, the literature says consumers vary greatly in their perceived subjective knowledge and expertise about a product offering. Product knowledge regarding fashion clothing can come from the product itself and consumption-related experiences, advertising exposure, interactions with salespeople, information from friends or the media, previous decision making or previous consumption or usage experiences held in memory. However, this study has shown that a consumers’ subjective fashion clothing knowledge is significantly influenced by their degree of fashion clothing involvement. The findings have shown involvement and product knowledge and expertise to be significantly related. The results show that as a consumer becomes more involved in a product and its use, they develop stronger subjective perceptions of product knowledge and expertise in the product. A consumer’s subjective product knowledge and expertise were shown here to be significantly influenced by their involvement in fashion clothing. Confidence, on the other hand, is an example of a non-evaluative dimension and refers to the conviction with which the belief in decision making ability and ability to choose the right brand is held. The measure of confidence, therefore assesses how certain or confident the respondents are in their estimates of their ability. The results indicate that this belief in ability is significantly influenced by consumers’ degree of involvement in fashion clothing. Limitations The study may be limited by the generic use of fashion clothing and not brands of clothing. The study is also limited by it country of study and focus on one state in Australia. However, these limitations do not render the findings any less significant, but open the way for further research in this area. It is important to examine the relationship at the product class level before exploring if and how consumers transfer involvement from the product to specific brands within the product class. As such now that a better understanding of the issue of fashion clothing involvement has been obtained two streams of research are relevant. Firstly, this issue of antecedents of involvement with fashion could be extended to include personal values and personality traits and consequences such as information search and time spent shopping. Secondly, the research could be extended to focus on branding, with specific emphasis on involvement with specific brands and what they mean to the fashion-involved consumer. As such, the driving force and long-term goal of future research is to test the conceptualisation of fashion clothing involvement and measures in different settings with different fashion products and to discriminate between involvement with product categories such as fashion clothing and specific brands within the category. This should be done using a broader nomological network than that used in this study. Research could focus on values, personality and status consumption tendencies and situational variables to test involvement. Also a within subjects design seems warranted to establish differences for different fashion and apparel formal and casual clothing types (shoes, sunglasses, etc.) and brands. Conclusion The framework appears to be a valuable aid in understanding the dynamics of fashion consumption. Such an approach can only enhance the effective utilization of consumer

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attachment to possessions at both a theoretical and practical level in understanding consumer behaviour related to fashion. This is important because fashion clothing has both important economic and social significance in many societies, particularly Western. Interestingly, many would argue a fundamental paradox of fashion and consumers’ strong attachment to it exists. Going so far as Dittmar (1992) did in the context of personal identity, with its unique and autonomous nature. She commented that personal identity should perhaps be independent of material context, and we are in reality, who we are, no matter what our possessions. However, what appears to be the case as this study shows in the context of fashion clothing, we are what we wear. In reality, we are who our clothes allow us to be.

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The current issue and full text archive of this journal is available at www.emeraldinsight.com/0309-0566.htm

Predicting online purchase intentions for clothing products

Online purchase intentions

Eun Young Kim School of Merchandising and Hospitality Management, University of North Texas, Denton, Texas, USA, and

Youn-Kyung Kim Department of Consumer Services Management, University of Tennessee, Knoxville, Tennessee, USA

883 Received April 2002 Revised January 2003 and July 2003

Keywords Internet, Shopping, Consumer behaviour, Garment industry Abstract Shopping online for clothing products is gaining in popularity. This study identified the dimensions of online shopping attributes and predictors of the intention to purchase clothes, jewelry, or accessories based on online shopping attributes and demographic variables. A mailing survey was conducted with 303 adults who had a computer at home and had access to the Internet in the USA. The perceived attributes of online shopping consisted of four factors: transaction/cost; incentive programs; site design; and interactivity. The transaction/cost factor and the incentive programs factor, along with demographic variables (gender, income and number of children), were important predictors in determining the intention to purchase clothing, jewelry, or accessories via the Internet. Incentive program also mediated the relationship between education level and online purchase intention. This study provides managerial implications for the future online marketing of clothing products.

The Internet population has grown tremendously since its opening to commercial traffic in 1991, and it has reached approximately 176 million, with 62 percent of Americans having Internet access from the home or office (International Herald Tribune, 2002). In Europe, it increased to about 108 million (50 percent) active Internet users by the end of 2001 (Meller, 2001). It is predicted that total online retail sales in Germany, France and the UK will reach e170.69 billion (US$167.95 billion) in 2007 (Nua Internet Surveys, 2003). The phenomenal growth of Internet shopping is driven by greater emphasis on consumers’ efficient use of time, as well as an increasing number of computer-trained consumers. Furthermore, security systems are rapidly improving, dispelling the notion that online shopping is a risky business. For instance, secure digital systems such as encryption tools, digital signatures and reassurance about security or privacy concern have reduced security inhibitors and thus have increased consumers’ willingness to visit or purchase from sites (Ah-Wong et al., 2001; Han and Maclaurin, 2002). More recently, the Web has drastically changed buyer-seller relationships, tipping the balance of power in favor of consumers through interactive features such as personalization, customized content and virtual communities (Detmer, 2002; Wind and Mahajan, 2002). This trend is creating an extremely competitive marketplace in which consumers have more shopping choices than ever before. This e-market environment poses special challenges for retailers, motivating them to perhaps radically revise their marketing strategies to secure more targeted customers.

European Journal of Marketing Vol. 38 No. 7, 2004 pp. 883-897 q Emerald Group Publishing Limited 0309-0566 DOI 10.1108/03090560410539302

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The success of online retailing depends to a large extent on the underlying characteristics of the products and services being marketed. Researchers (e.g. Hui and Chau, 2002; Li and Gery, 2000) have contended that the suitability of online retailing to consumers varied by the category of products, due to either the uniqueness of the product itself, the nature of the Internet, or the newness of the distribution channel. Fast-selling products on the Internet used to be those products about which the shopper already had sufficient information, such as books, computer products, travel, health and beauty products (Reda, 2001; Schaeffer, 2000). However, as technology improves, items previously thought to be saleable only in a touch-and-feel environment (e.g. apparel, jewelry) are enjoying more widespread sales. Online apparel retailers in the USA and Europe (e.g. Lands’ End, J.C. Penney and Galleries Lafayette) have increased profitability by giving consumers access to interactive try-on sessions such as the “virtual dressing room”, “digital supply chain” and “online fit prediction” (Abend, 2001; Direct Marketing, 2001). Furthermore, the recent integration of apparel manufacturers into direct Web selling, as well as the continuing incursion of traditional retailers into the online channel, has fueled the clothing surge (Schaeffer, 2000). Already, most revenues in the apparel sector are driven by multi-channel concepts with a strong brand appeal, such as Victoria’s Secret, Lands’ End, J.Crew, Liz Claiborne and L.L. Bean (Chevron, 1999; Hill, 2000; Tiernan, 2000). According to the “Multi-channel retail report”, US shoppers who bought through all three channels of brick-and-mortar stores, catalogs and the Internet represent 34 percent of all shoppers, and 78 percent of shoppers purchase from both Web sites and the brick-and-mortar stores (Shop.org, 2002a). In Europe, clothing retailing also is suffering from competition with other channels of distribution, which challenges clothing retailers to adopt a multi-channel strategy (Myers, 2002). Therefore, apparel retailers who want to expand their market share can merge three different retail channels as a way to reach customers and channel brands internationally (Tiernan, 2000; Welling, 2000). With expanding online apparel retailing, researchers have studied important attributes and attitudes toward online shopping for clothing products. For example, Kunz (1997) reported that online apparel consumers valued merchandise quality, merchandise variety and customer service. According to Taylor and Cosenza (2000), when shopping online for clothing, consumers rated the functional attributes such as price, ease of movement and ease of return as important. Shim et al. (2000) reported that attitudes toward online shopping were stronger for cognitive products such as books and computer software than for sensory experiential products such as apparel or accessories. Although previous research insights have focused on understanding the important attributes of online retailing, these studies have not led to affirmative conclusions as to what attributes contribute to consumers’ intentions toward online shopping. Also, for clothing products, little is known about the demographics of online customers and even less about the factors influencing their decision to purchase. Therefore, by examining what attributes are important to online shoppers and predicting their purchase intentions, retailers can develop effective strategies for clothing products that will better position them against their competitors, including brick-and-mortar stores and catalog retailers. The potential for success through online marketing of clothing products is greater, considering the increasing consumer demand for online shopping and the decreasing inhibitors related to online shopping for clothing products.

Online shopping attributes There has been a consensus regarding the attractive attributes of Internet shopping compared to traditional shopping. The attractive attributes of Internet shopping include time- and money-saving; convenience or easy accessibility; the shopper’s ability to screen and select a wide range of alternatives; and the availability of information for making purchasing or ordering decisions (Breitenbach and Van Doren, 1998; Crawford, 2000; Ray, 2001; Schaeffer, 2000; Then and Delong, 1999). Besides the aforementioned attractive attributes, online retailers have also faced challenges associated with e-marketing. Above all, security and privacy factors are critical for online companies in order to build long-term relationships between customers and sellers (Schoenbachler and Gorden, 2002; Yoon, 2002). Due to consumers’ concern with regard to transaction security and privacy in e-transmission, retailers are now more involved in improving e-transmission security and broader protection policies by providing customized strategies including return policies, interactivity and personalization on Web sites (Detmer, 2002;Verton, 2001). For instance, the interactivity of the Web allows consumers to personalize and customize their experience through keyword search, dealer locator, comments and online ordering, and this experience has had a significant positive effect on the quality rating of Web sites (Ghose and Dou, 1998). More recently, European companies are considering investment in customer relationship management (CRM) strategies to increase higher sales and to provide the intangible benefits of better customer service to their customers (Business Europe, 2003; Gillies et al., 2002). Therefore, the interactive attributes can help by having a beneficial impact on e-satisfaction and enhanced customer relationships (Srinivasan et al., 2002), sustaining e-loyalty or patronage (Lewis and Cockrill, 2002) through making customer interaction easier. In addition, consumers’ online shopping experiences may be enhanced by incentive programs such as saved shopping lists or personalized help, point- and incentive-based premium and gift programs and cumulative discounts or rebates based on purchase amount (Breitenbach and Van Doren, 1998). According to Ray (2001), online companies can convert browsers into buyers online by including incentive experiences such as free postage, “buy one get one free”, points/miles rewards, sweepstakes and contests. Many retailers have pointed out the Internet’s inability to appeal to a wide range of senses. Thus, elements involved in designing a Web site such as background colors, fonts, images, logos, order forms and shopping procedures become more important to provide enhanced consumer experiences, which are derived not only by cognitive information, but also by a hedonic service experience through online shopping (Harrison-Walker, 2002; Srinivasan et al., 2002). Especially for sensory products such as clothing, jewelry or accessories, which are experienced through one or more of the five senses (e.g. touch, sight, smell), the consumers’ ability to examine merchandise before purchasing is substantially limited, even when an online shopping site has video or audio-capacities. Online retailers of fashion sites have attempted to capitalize on the advanced unique virtual shopping environment using 3D Flash sites, electronic dressing rooms and fashion-conscious virtual personal shoppers to guide users (Stockport et al., 2001). Then and Delong (1999) suggested three important visual aspects for successful Web sites for apparel shopping: images of the online product in its closest representation of end use, displays in conjunction with similar items and views from various angles such as front and back. Nevertheless, it has been reported

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that apparel retailers have not demonstrated successful Internet penetration, because apparel sites could not provide sufficient functionality due to frustrating and disorganized access, navigation and browsing, and because online apparel remains “no cheaper” than brick-and-mortar stores due to the costs expended on advanced virtual techniques (Damesick, 2002; Stockport et al., 2001). Predictors of online purchase intention Previous studies (e.g. Breitenbach and Van Doren, 1998) have reported that Internet users in the USA are better-educated, business-oriented, younger, male consumers. However, Shim and Drake (1990) reported that, regardless of product category, online shoppers tend to be characterized as higher educational level; female; older, ranging from 30s to 50s; and lower income. According to Douthu and Garcia (1999), it is the older and affluent Internet user who is actually shopping online because he/she has a higher purchasing power and easier access to credit cards, while younger consumers use the Internet for information acquisition only. Recently, Mathwick et al. (2002) reported that online shoppers, compared to catalog shoppers, appeared to be younger than 44 years of age, well-informed or educated and more affluent (typically from single-income households exceeding US$75,000). As shopping online becomes more common in the USA and Europe, the number of women shopping online shows a corresponding increase although male consumers were known as early adopters of Internet shopping (Asch, 2001). In the USA, about 50 percent of Internet shoppers are female (McIntosh, 2001); in the UK, 61.5 percent of women who have children go shopping online (Shop.org, 2002b). In particular, the continued increase of women’s presence on the Web is shifting the focus of online retailers to products that women are more likely to buy such as home furnishings, apparel, jewelry and gifts (Allen, 2001; Chiger, 2001; Elkin, 2001). In addition to demographic characteristics, consumers’ perceptions of Internet attributes have been reported to predict consumers’ intentions to buy products or services via the Internet. Internet shopping has the potential to influence consumers’ likelihood of purchasing if they perceive that the Internet saves time and effort; is easy to order; provides merchandise with good value for the price and merchandise of good quality; offers privacy or financial security; offers good site design; and provides relevant and rich information (Breitenbach and Van Doren, 1998; Shim et al., 2000; Supphellen and Nysveen, 2001; Szymanski and Hise, 2000). Overall, convenience (e.g. availability of relevant information, richness of information, and ease of ordering) and competitive price or sales promotions play the most significant roles in predicting intention to revisit Web sites (Chiger, 2001; Supphellen and Nysveen, 2001). More importantly, specific attributes related to transaction are significant determinants of online purchase behavior. For instance, costs for shipping appeared to be the biggest deterrent to shopping online as expressed by 54 percent of French consumers and 53 percent of American consumers (Parker, 2000). According to Shim et al. (2001), transaction service such as payment security, privacy, safety, product guarantees, and minimal cost/time for return affected intention to use the Internet for purchasing. Han and Maclaurin (2002) discovered that US consumers’ perceptions of information privacy and control affected willingness to visit or purchase from a Web site. A major reason why Europeans (i.e. 72 percent French consumers; 77 percent the UK consumers) are reluctant to use their credit or debit cards online is warier about

privacy and security in e-commerce than traditional commerce (Cohen, 2000). Similarly, in Yoon’s (2002) study, transaction security was also the most important antecedent of online purchase intention with a mediator of trust or Web-site satisfaction. Especially for clothing “feel-and-touch” products, Then and Delong (1999) suggested that consumers tend to buy more apparel if they perceive such features as a convenient and secure system of ordering, returns policy, focus on product display, and the offering of products that have a range of acceptable fits as opposed to a precise fit. According to Shim et al. (2000), for the sensory experiential products (e.g. apparel and accessories), consumers are less likely to be influenced by functional attributes such as fast transaction service and speedy shopping than they are for cognitive products (e.g. books, computer software, music and videos). This is supported by Verton’s (2001) argument that a personalized shopping experience via various incentives and virtual image technology is more important to encourage apparel consumers to shop online. On the other hand, Watchravesringkan and Shim (2003) found that online purchase intentions for apparel products were predicted by attitudes toward secure transaction (e.g. payment security, consumer information privacy, return policy, minimal cost and time for return and product shopping guarantees) and speed process. These findings are somewhat contradictory and lead to the proposition that online shopping intentions for clothing-related products (e.g. clothes, jewelry or accessories) will be predicted by different combinations of online shopping attributes and demographic variables. Thus, the objectives of this study were (a) to identify the dimensions of online shopping attributes that consumers perceive to be important and (b) to determine predictors of consumers’ purchase intention concerning clothes, jewelry or accessories based on attributes of online shopping and demographic variables.

Methods Measures To determine predictors of consumers’ purchase intentions for clothing products, a self-administered questionnaire was developed based upon literature, and included three major variables: online shopping attributes, purchase intentions for clothes, jewelry, or accessories through the Internet and demographic characteristics. A total of 26 online shopping attributes were developed in order to measure aspects of online transaction service including security or privacy, cost (price, time saving), delivery and returns policy (Crawford, 2000; Shim et al., 2000), site design for virtual experiences (Then and Delong, 1999), incentive programs with respect to online membership, visit point and give-aways (Breitenbach and Van Doren, 1998) and interactivity between buyer and seller (Breitenbach and Van Doren, 1998; Ghose and Dou, 1998) (see Table I). Respondents were asked to indicate, on a seven-point scale (1 ¼ very unimportant; 7 ¼ very important), their response to the question “how important would each of the following items be for you to purchase over the Internet?” Online purchase intentions were measured as the extent to which respondents were likely to purchase clothes, jewelry, or accessories via the Internet in the next six months on a seven-point scale (1 ¼ very unlikely; 7 ¼ very likely). In addition,

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Factors and items

Eigenvalue

0.83 0.78 0.78

6.58 (1.27) 5.82 (1.37) 6.10 (1.39)

0.77 0.76 0.71 0.67 0.66

6.17 6.44 6.25 6.02 6.02

(1.31) (1.28) (1.47) (1.41) (1.41)

Factor 2: incentive programs Give-aways Frequent visitor points Free-trial Entertainment Online club membership benefits Coupon redeemable online

0.84 0.84 0.68 0.66 0.65 0.57

3.86 3.90 4.47 3.47 4.02 5.35

(1.88) (1.87) (1.70) (1.62) (1.74) (1.71)

Factor 4: interactivity Ability to examine merchandise Ability to inspect and update information Knowing what personal information is collected Ability to choose whether vendors can obtain data about you

10.00

Variance Mean (SD)

Factor 1: transaction/cost Credit card security Fast delivery time Cheaper prices than retail stores No or low shipping and handling charge Money-back guarantees Privacy assurance Access to a major credit card Information on reliability of the seller

Factor 3: site design Three-dimensional product simulations Trained, licensed raters Virtual tour/experience Word-of-mouth endorsement Specially designated “trial stores” Toll-free complaint hotlines

Table I. Factor analysis: perceived important attributes in online shopping

Factor loading

2.83

1.65

42.09

0.92

11.80

0.85

6.88

0.70 0.70 0.69 0.63 0.62 0.60

0.84 4.40 4.62 4.43 4.84 4.57 5.63

1.12

Cronbach’s a

(1.77) (1.76) (1.77) (1.83) (1.65) (1.62)

4.70

0.85

0.69

5.53 (1.46)

0.63

5.35 (1.55)

0.62

6.06 (1.57)

0.59

6.23 (1.48)

demographic variables included gender, age, household income, marital status, education, ethnicity and number of children. Sampling and data collection The sample was obtained from a mailing list US broker who had a nationwide database. From the mailing list, 3,000 adults who had a computer at home and had access to the Internet in the USA were randomly selected. The survey was mailed to each individual, with a follow-up postcard sent after a week. A total of 303 usable responses were analyzed for the study. Respondents consisted of 70 percent males and 30 percent females. The majority of the respondents (79 percent) were 35 to 54 years old. Approximately 67 percent reported an annual household income of US$90,000 and over. Most (93.1 percent) were married or living with a partner. Of the respondents, 43 percent had a graduate degree, and 34 percent had a bachelor’s degree. The majority

(87.8 percent) were Caucasian, and 64.7 percent had one or two children living in the household. Although the response rate for this study was not high (10.1 percent) increasing the risk of non-response bias, the characteristics of the sample are similar to those of online shoppers in previous studies (Douthu and Garcia, 1999; Mathwick et al., 2002) in that they tend to be male, have high socioeconomic status (i.e. higher education, higher income) and are white. Data analysis The 26 online shopping attributes were factor analyzed using principal component factor analysis with varimax rotation in order to identify underlying dimensions of online shopping attributes. Items with a factor loading of 0.50 or higher were considered in interpreting the factors. Cronbach’s alpha established inter-item reliability between items, and means were examined for each factor. Next, path analysis was conducted by LISREL 8 (Jo¨reskog and So¨rbom, 1993) based on the maximum likelihood (ML) approach, using correlation matrixes of measurements, in order to predict online purchase intentions for clothing products based on online shopping attribute factors and the demographic variables such as gender, age, household income, education and number of children. The path-analyzed model fit was evaluated by using several goodness-of-fit measures: x 2-value, goodness of fit index (GFI), adjusted goodness of fit index (AFGI) and root mean squared residual (RMR). A large x 2-value corresponds to a bad fit; a small x 2-value, a good fit. The closer to 1 the values of GFI and AGFI are, the better the fit of the model is. The value of RMR being under 0.05 generally means that the data fit the model well when the model is analyzed with the correlation matrix (Jo¨reskog and So¨rbom, 1989). Results and discussions Dimensions of online shopping attributes The 26 attributes regarding online shopping were factor analyzed, resulting in four factors whose eigenvalues were greater than 1 (Table I). Two items, “product/company information” and “ communication with the vendor” were eliminated due to loadings below 0.50. The first factor (transaction/cost) included eight attributes: credit card security, fast delivery time, cheaper prices than retail stores, no or low shipping and handling charge, money-back guarantees, privacy assurance, access to a major credit card and information on reliability of the seller. All of the items that belonged to this factor received high mean scores (above 6). Furthermore, the explained variance of this factor (42.09 percent) was far greater than the remaining three factors. This indicates that the transaction/cost factor is the most significant contributor to overall perceptions of online shopping attributes. These results support the previous findings that transaction-based security, privacy, return policy and low cost (e.g. time saving, low price) were significantly related to the potential of online purchasing and satisfaction (Crawford, 2000; Han and Maclaurin, 2002; Shim et al., 2001; Szymanski and Hise, 2000; Yoon, 2002). The second factor (incentive programs) consisted of six attributes: give-aways, frequent visitor points, free-trial, entertainment, online club membership benefits and

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coupons redeemable online. The attributes of incentive programs received the lowest mean scores, ranging from 3.47 to 5.35. This implies that incentives or premiums may not play a critical role in stimulating purchasing online, although it has been reported that incentive programs increase Internet usage (Breitenbach and Van Doren, 1998; Ray, 2001). Probably, incentive programs encourage revisiting and repurchasing for loyal customers rather than motivating novice or general consumers. The third factor (site design) included three-dimensional simulation, trained and licensed raters, virtual tours, word-of-mouth endorsement, specially designated “trial stores” and toll-free complaint hot lines. These attributes can be utilized so that the consumer may become interested in entering and having a pleasant experience while navigating the Web site, which can create an experience similar to an in-store experience (Menon and Kahn, 2002; Szymanski and Hise, 2000; Then and Delong, 1999). The fourth factor (interactivity) is associated with interaction between buyers and sellers for the product evaluation and product information available online, including the ability to examine merchandise; the ability to inspect and update information; knowing what personal information is collected; and the ability to choose whether vendors can obtain data about consumers. The attributes of this factor received the second highest importance scores, ranging from 5.35 to 6.23. This result supports the proposition that customer-support function over the Web can expand the interaction between retailers and their customers and thus can increase customer loyalty (Reichheld et al., 2000; Srinivasan et al., 2002). Predictors of online purchase intentions for clothing, jewelry and accessories A path analysis was undertaken to predict the consumers’ purchase intentions concerning clothing, jewelry, or accessories based on correlations among the online shopping attributes and the demographic variables (Table II) by using LISREL 8. In a proposed model, the four factors of online shopping attributes (i.e. transaction/cost, incentive programs, site design and interactivity) and consumers’ online purchase intention for clothes, jewelry or accessories served as endogenous variables; demographic variables (i.e. gender, age, household income, education and number of children) served as exogenous variables. We were also concerned about the causal effects of demographic variables on the factor of online shopping attributes (Figure 1). Variables

Table II. Correlations of model variables

Y1. Y2. Y3. Y4. Y5. X1. X2. X3. X4. X5.

Y1

Y2

Y3

Y4

Y5

X1

X2

X3

X4

X5

Transaction/costa 1.00 Incentive programsa 0.00 1.00 a Site design 0.00 0.00 1.00 Interactivitya 0.00 0.00 0.00 1.00 Purchase intention 0.24 0.23 0.05 2 0.01 1.00 b Gender 20.10 20.12 2 0.08 2 0.04 20.21 1.00 Age 20.09 20.11 2 0.01 0.09 20.09 0.20 1.00 Income 0.06 20.10 2 0.06 0.08 0.11 0.05 0.08 1.00 Education level 0.04 20.24 2 0.11 2 0.03 20.01 0.17 0.13 0.13 1.00 Number of children 0.03 0.01 2 0.01 2 0.03 0.13 0.04 2 0.15 2 0.07 20.08 1.00

Notes: a Computed by factor scores; b Dummy variable (1: male, 0: female)

The result of the path analysis exhibited that the x 2 value of.342 was not significant (df ¼ 6, p ¼ 0:999); other indices revealed that the path model is valid (GFI ¼ 1:0, AGFI ¼ 0:998, RMR ¼ 0:0045). The path model illustrated in Figure 1 demonstrated that the two factors of online shopping attributes (i.e. transaction/cost, incentive programs) and the four demographic variables (i.e. gender, income, education and number of children) were significant predictors in determining the consumer’s online purchase intention for clothes, jewelry or accessories. In addition, the factor of incentive programs mediated the causal relationship between the education level and the online purchase intention. These two online shopping attribute factors and the four demographic variables in the model accounted for 18 percent of the total variance of purchase intention (R 2 ¼ 0:179). This result suggests that consumers’ attitudes toward Internet-specific attributes (e.g. secure transaction, low price and incentives) were important in predicting online purchase behavioral intention (Breitenbach and Van Doren, 1998; Ray, 2001; Shim et al., 2001; Yoon, 2002). The result is also consistent with the finding that Internet users’ demographic characteristics such as gender, age, income and educational level are related to online purchase behavior (Douthu and Garcia, 1999; Mathwick et al., 2002; Shim et al., 2000). More specifically, in terms of online shopping attributes, transaction/cost was a significant predictor of purchase intention for clothes, jewelry and accessories (b51 ¼ 0:210, t ¼ 3:853). The greater consumers perceived transaction- and cost-related attributes to be important, the more likely they were to purchase

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Figure 1. Path diagram for prediction of online purchase intention concerning clothing products

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clothes, jewelry and accessories via the Internet. Consumers purchasing clothes, jewelry, or accessories over the Internet were influenced by Internet-specific transaction and utilitarian or economic value, although those products may be experiential. The factor of incentive programs appeared to be the most important significant determinant in predicting the purchase intention, as illustrated by the highest path coefficient (b52 ¼ 0:237, t ¼ 4:252). Certainly, customer satisfaction or loyalty can be enhanced by incentive programs including personalized help, point-and incentive-based premium and gift programs, discounts and online clubs. In addition, the incentive program factor mediated the effect that the education level has on purchase intention. Incentive programs were influenced negatively by the education level (g24 ¼ 20:207, t ¼ 23:529), indicating that the lower the education level, the more importantly consumers perceived incentive benefits such as give-aways, frequent visitor points, free trials and online club membership benefits. It is cautioned, however, that the majority of respondents for this study held a graduate degree (43 percent) or a bachelor degree (34 percent). Among the demographic variables, gender, household income, and number of children were significant predictors of purchase intentions. For clothes, jewelry or accessories, heavier purchasers were female (g15 ¼ 20:178, t ¼ 23:170), were higher-income consumers (g35 ¼ 0:139, t ¼ 2:526) and had more children (g55 ¼ 0:139, t ¼ 2:531). This indicates that most female consumers might be decision-makers for purchasing clothes, jewelry or accessories, confirming the recent report that female and affluent consumers with children are more important online shopper segments for the clothing sector in the USA and Europe (Allen, 2001; Chiger, 2001; Elkin, 2001; Shop.org, 2002b). Also, consumers who have children may not easily browse and shop in a brick-and-mortar store and may opt for online shopping. Conclusions and implications The purpose of the study was to identify the dimensions of online shopping attributes and predictors of consumers’ purchase intentions concerning clothes, jewelry or accessories. The dimensions of the perceived attributes regarding online shopping consisted of four factors: transaction/cost; incentive programs; site design; and interactivity. Overall, transaction/cost was perceived as most important, followed by interactivity, site design and incentive programs. In addition, the consumers’ intentions to purchase clothes, jewelry and accessories were predicted by two online shopping attribute factors (transaction/cost and incentive programs) and four demographic variables (gender, age, education and number of children). This study provides salient implications for e-marketing strategies for clothes, jewelry and accessories. More specifically, online transaction issues (i.e. credit card security, privacy assurance, access to a major credit card and information on the reliability of the seller) and low cost (i.e. fast delivery time, cheaper process than retail stores, no or low shipping, handling charge and money-back guarantees) play important roles in online purchasing of clothing products. Therefore, establishing a risk-free image would seem to be a key strategy for retailers if they are to attract consumers to an Internet shopping format. One possible approach is to encourage credit card companies to make consumer protection assurances in order to reduce consumers’ security and privacy risk. Consistently monitoring changes of customers’

postal and e-mail addresses also allows retailers to ensure the accurate delivery of online purchases. Online retailers should also consider offering strong economic value by including cumulative discounts or free shipping, delivering competitive value in relatively small package sizes and lower tax rates over the Internet. The incentive program was the most important predictor of consumers’ purchase intentions concerning clothes, jewelry or accessories. This suggests that online marketers should create incentive programs to capture new customers or to retain existing customers on their shopping sites – especially given that online apparel shoppers tend to bookmark their favorite sites and revisit them for information search and entertainment as well as for multiple transactions (Reichheld et al., 2000). From this perspective, incentives including first-time buyer discounts and reward programs for frequent visitors can not only sustain e-loyalty, but also convert a newcomer who visits the site only to seek information into becoming a regular customer. Contrary to what has been known about apparel e-tailing, site design did not have a significant impact on consumers’ purchase intentions for clothing products. It can be argued that site design is not crucial to purchase clothing on the Internet, in that graphical Web contents are often slow to download and the colors or fabrics on the computer screen may not adequately represent real merchandise (Li and Gery, 2000; Stockport et al., 2001). In fact, consumers are increasingly using various channels and approaches in two stages of the shopper decision process to obtain information and make purchases (Wind and Mahajan, 2002). Especially for touch-and-feel products (e.g. clothing), multi-channel strategies can reduce consumers’ perceived risks associated with online transactions, because consumers can evaluate the information on style, size and fabric and then try on in stores. Also, brick-and-mortar retailers may consider receiving returns even if the products were purchased online. Online shoppers for e-apparel retailing should be differentiated from shoppers of other product categories (e.g. computers, books). Consumers who are female, earn a high income, and have many children can be important targets to increase the market share of online retailers of clothes, jewelry and accessories. These consumer characteristics may indicate the need to provide various product assortments targeted at different consumer groups. For instance, for higher income female consumers, online retailers would offer high-priced jewelry or accessories and high-branded apparel. For consumers with children, offering child or infant wear, with incentive gifts for their children, may increase online sales. In addition, the incentive program played a significant role as a mediator of the relationship between the education level and online purchase intention. For consumers with the lower level of education (bachelor’s degree or high school graduate), the incentive program would be a critical stimulus to encourage their purchase of fashion items (e.g. clothes, jewelry, or accessories) over the Internet. Accordingly, e-retailers of clothing products could gain a competitive advantage by providing promotional incentives, such as gifts-with-purchase, give-aways, frequent visitor points, free trials, entertainment and redeemable coupons. The Internet is viewed as a new communication tool for expanding in a global market or entering a completely new market area (Harrison-Walker, 2002; Tian and Emery, 2002). While Internet marketing faces cross-cultural issues, the distinctions between international markets for apparel are fading, due to standardization of communication and the exercising of tight control over merchandising, distribution and pricing strategies (Moore et al., 2000). Apparel retailing can develop cross-border

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markets in Europe and North America where cross-border shopping frequently occurs (Nielsen, 2001; Timothy and Butler, 1995) through Internet-specified advantages such as wide access to customers, high interactivity, small geographic distance barriers and lower marketing cost compared to other media (Lewis and Cockrill, 2002). It also can increase market efficiency using a standardized brand image targeted at more homogeneous groups or female consumers for apparel e-global market across cultures. Internet shopping in the area of clothing products is still in its infancy, and our conclusions may not hold for long, given the rapid development of e-commerce technologies and the increasing number of computer-trained consumers. Because the present study was cross-sectional in nature, a longitudinal study may be conducted to assess how consumer perceptions of important online shopping attributes change over time and what variables predict consumers’ purchase intentions concerning clothing products. Although this study makes a valuable contribution by providing a robust propensity of US online customers for clothing products, it has the limitations of low response rate (10.1 percent) to represent global online consumers. Future research should extend to investigate more global consumers including geographic, ethnic or cultural variables from the global perspective. Also, it is recommended that jewelry be examined as a product different from clothing, because it may be associated with different customer behavior, profiles and, therefore, market strategies.

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The impact of color in the e-commerce marketing of fashions: an exploratory study

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Philip S. Nitse, Kevin R. Parker, Dennis Krumwiede and Thomas Ottaway

Received April 2002 Revised February 2003, June 2003 and January 2004

College of Business, Idaho State University, Pocatello, Idaho, USA Keywords Internet, Shopping, Colour, Fashion industry, Trust, Consumer behaviour Abstract As the number of Internet purchases of fashion items increases, the problem of inaccurate color representation on the Web becomes more significant. Color inaccuracy has many negative consequences for marketers, including loss of sales, increased returns and complaints, and customer defections. This research reports the findings of a survey conducted as part of an initial investigation into consumer opinions about fashion merchandise purchasing over the Internet. Results indicate that companies are losing customers and sales as a result of having colors on e-commerce sites that do not accurately represent the actual colors of the products being sold. Increased dissatisfaction on the part of consumers leads to greater costs in both customer service and reverse logistics. Further, a majority of the respondents indicated that they would not make additional purchases from an e-tailer if they received items in colors different than they expected. The paper concludes with suggestions for future research.

European Journal of Marketing Vol. 38 No. 7, 2004 pp. 898-915 q Emerald Group Publishing Limited 0309-0566 DOI 10.1108/03090560410539311

Introduction Estimated global B2C e-commerce sales for 2003 range from 144 to 380 billion US dollars. This estimate, reported by OECD, is based on a variety of sources including Boston Consulting Group, Giga Information Group, Forrester Research, Dataquest, Gartner Group, Warburg Dillon Read, and Pro Active (Organization for Economic Co-operation and Development (OECD), 2001). Further, global B2C e-commerce is forecast to hit US$562 billion by 2006 (Sharrard, 2001). Internet sales of non-travel related products in the USA have reached US$988 million a week, with apparel and home items experiencing a greater increase than other items (Puente, 2002). According to one study, the Internet will influence US$400 billion in US retail sales in 2003 and as much as US$1 trillion by 2006, and the study indicates that half of the online shoppers report that they first researched goods on the Internet and then purchased the items over the telephone (IMRG.org, 2001). Apparel has been one of the top eight industries involved in Internet shopping in the USA (Krantz, 1998). According to a 2002 UCLA study, 48.2 percent of new users (less than one year Internet experience) and 41.8 percent of experienced users (greater than six years of Internet experience) reported making online clothing purchases (Lebo, 2003). The increasing number of e-commerce transactions involving fashion merchandise requires that detailed product information be provided to potential consumers before they are comfortable with making a purchase. A critical component of that information is the color of the products being considered for purchase. Color information can consist of both verbal information (e.g. a description of a product as being royal blue) and graphical information (e.g. a jpeg or other graphic format showing the product in

royal blue). This is a significant change from even a few years ago when only color names were available (Puente, 2002). Purchasers can now use the Web to see the entire selection of colors in which a product is available in lieu of having the product or a catalog in front of them. For the purpose of this paper, fashion merchandise is defined as both clothing and accessories for people, and fashion items for the home, such as indoor and outdoor furniture and home decor. Color representation on e-commerce sites is often inaccurate, and these inaccuracies can lead to several possible outcomes. First, the consumer may not trust the colors that are depicted on his or her monitor and not order the product, leading to a loss of sales from the Web site. Second, the consumer may order the product with the hope that when the actual product is received it matches the color depicted. If it does not, they may return it, again leading to a loss of sales, but with the added costs of reverse logistics and restocking. Third, the consumer may order the product and keep it even though they may not be completely satisfied. In the latter two cases, the unhappy consumer may complain to the company as well as friends about the lack of quality control, which may lead to a loss of future sales not only from the consumer, but also from many of the people who are influenced by this person’s opinion. This paper examines the consequences of color inaccuracies and outlines an approach to researching the problem. It is important to note that consumers who utilize the Internet may proceed in any one of four purchase scenarios. These scenarios are: (1) Visiting stores to evaluate a product or to gather information prior to purchasing online. (2) Using the Internet to locate the product and/or a local retailer, and then going to the store to make the purchase. (3) Using a catalog in conjunction with the Internet Web site for making the purchase decision. (4) Making both the purchase decision and the actual purchase using only online resources. According to a UCLA study, 64.7 percent of Internet purchasers surveyed in 2002 follow the first scenario, sometimes or often browsing in traditional retail locations and then buying online, up from 53.2 percent in 2000 (Lebo, 2003). In these cases, the color of the product may be determined prior to ordering, rendering any online color inaccuracy irrelevant. The same UCLA study found that 70.9 percent of Internet purchasers who took part in the 2002 study indicated that they follow the second scenario, and shop online prior to buying in retail stores, a decrease from 75.6 percent in 2000 (Lebo, 2003). These consumers may shop online to find a product or to see if a local store has the product, and then go to the store to purchase it in order to avoid paying shipping and handling or to avoid the delayed gratification associated with shipping delays. In this case, an item’s color may be initially selected online but later confirmed or rejected prior to purchase upon examination of the actual item, again minimizing the impact of color inaccuracies. In the third scenario, consumers may refer to a catalog to help with color selection prior to online purchase. Here, the color selection may be influenced more by the catalog than by the Web site representation, since the color of products in catalogs may be perceived to be fairly accurate due to sophisticated color correction techniques available in print media. In the fourth

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scenario, the Web site representation provides the sole basis for product selection. This research focuses on the last two scenarios because the e-commerce site provides the primary frame of reference for color selection. In scenario 3, a catalog may be available but the consumer may not have the option of evaluating the color of the item at a retail outlet due to either geographic or transportation limitations. In scenario four, neither a catalog nor a retail outlet is available for color confirmation. In these cases the accuracy or inaccuracy of color representation on e-commerce sites can have wide-ranging implications for both the consumer and the retailer.

Information on color According to Stone (2001, p. 1), color perception is problematic for a variety of reasons. Color is subjective, that is it’s perfectly obvious that color is an intrinsic feature of an object: Grass is green, the sky is blue, the paint on your living room wall is peach, and so on. As obvious as this may be, however, it’s not so. Color is actually a sensation, just like touch. And the colors you see are purely subjective, as interpreted by your visual system and your brain. Lighting affects color of an item including, for example, a printout will vary depending on the light, so it will look different under incandescent light, florescent light, and daylight, for example. Identical colors can also be metameric pairs. For example, two items that are the same color under one light can be different colors under another light. Colors are affected by adjacent colors. Perception of a color will change, depending on the colors around it, an effect called simultaneous contrast. If a small square of green is placed on a blue background, the green will have a yellowish tinge. Change the background to yellow, and the green will have a blue tinge. The human eye is different from a scanner or camera. As a result the sensors in scanners and cameras are sensitive to specific frequencies of light in different proportions than the color sensitive cones in the human eye. Different devices have different color gamuts. Monitors can show colors that printers can’t print, and printers can print colors that monitors can’t show. Cameras and scanner sensors can register colors that neither monitors nor printers can produce. Different devices use different color models. A color model is simply a mathematical way to represent colors. When different devices use different color models they have to translate colors from one model to another, which often introduces errors. This is a particular problem for device-dependent models, meaning models defined strictly in terms of a specific printer, monitor, scanner, or camera. The factors noted above indicate that the adverse effects of inaccurate color representation afflict not only online shopping sites, but also more traditional means of shopping for fashion products, such as retail stores and printed catalogs. The problem is actually more a matter of perception than representation, and this gives rise to the difficulty in accurately portraying the color to the consumer. Color is a sensory perception related to the frequency of the light waves being reflected from the item being viewed and not an intrinsic property of that item. This is why it is entirely possible that two items viewed in a retail store, say under fluorescent lighting, may appear to be the same color yet when viewed outside, under natural sunlight, may appear to be different colors.

Printed catalogs introduce yet another set of lighting factors that impact the consumer’s perception of a fashion product’s color. An image of the item appearing in the catalog is created under one set of lighting conditions, yet may be viewed under an entirely different set of lighting conditions. Even though the image may be painstakingly color corrected to match the original item, the catalog producer has no control over the lighting conditions under which that image will ultimately be viewed. An additional problem associated with catalogs is that the colors represented in the printing process are a close approximation produced by color composites. Most printers utilize the CMYK color model, which approximates colors in terms of the amounts of each color of ink – cyan, magenta, yellow, and black. The color gamut that a printer is able to represent is much smaller than the entire range of colors that the human eye can perceive, thus the approximation is often lacking in precision. Images of fashion products presented on the Web are subject to the same lighting issues as catalog images during their creation and viewing, as well as to a host of hardware and software factors. Some of these factors include the graphic file format in which the image is stored, the type, brand, and age of the monitor on which the image is viewed, the graphics card to which the monitor is attached, and operating system settings for number of colors to be displayed and the resolution of the display. Personal computers owned by consumers vary in image presentation due to differences in graphics cards and monitor resolution capabilities (Imation, 2001; Business Wire, 1999).

Consumer behavior To properly assess consumer online shopping behavior, the service quality literature was examined to determine what is known about how consumers judge a company’s service. Since online shopping is as much about the service rendered as the purchase of a product, this is deemed very important. Berry et al. (1990) state that there are five imperatives for improving service quality: tangibles, reliability, responsiveness, assurance and empathy. They also state that knowing what consumers expect must be coupled with meeting the expectations. In a study examining the impact of technology on the quality-value-loyalty chain, Parasuraman and Grewal (2000) state that reliability is the most critical dimension of service quality. The depiction of color on the Web is a reliability issue since color can vary and does not always meet consumers’ expectations. Parasuraman et al. (1991a) found that when reliability is compromised, customer service perceptions suffer. Generally, the more reliable the service is, the more the customer will trust the service. One study found that there is a difference in the level of trust in the reliability and accuracy of information on the Internet between non-users and users (Lebo, 2003). Non-users were much less trusting than users, with 66.5 percent of non-users saying that only about half or less of the information was reliable and accurate, while 47.2 percent of users were in agreement. Previous studies reveal a link between service quality and behavioral intentions. There are links between service quality and willingness to recommend a company to others (Boulding et al., 1993; Parasuraman et al., 1988, 1991b), between service quality and repurchase intention (Boulding et al., 1993), between service quality and reduced spending or exit (Richins, 1983; Scaglione, 1988), and between service quality and complaint behavior (Singh, 1988). Zeithaml et al. (1996) present a model of these links.

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A distinction must be made between choice criteria and satisfaction drivers. consumers may select a product using one set of criteria (choice criteria) and determine if they are satisfied with the product using a different set of criteria (satisfaction drivers) (Oliver, 1997). Choice criteria for fashion items may include both basic product features and augmented product features. The basic product features include, but are not limited to, considerations such as size, fabric, style, and color. These features may also be satisfaction drivers since they will influence post-purchase behavior. For instance, a consumer may select a fashion accessory due to the color, and derive satisfaction since the item completes the stylish look that he/she was striving for in their ensemble. In such a case color is a choice criteria when making the purchase decision, and a satisfaction driver once the item has been received. In another example, a person may desire to purchase a blue suit for work and therefore limit their selection to only suits that are available in a range of blue. Once a suit in an acceptable shade of blue is found, other choice criteria, such as style, fabric and size, take over. When the customer receives the suit, their behavior is then driven by satisfaction drivers. The customer may be satisfied since the suit fits properly, looks stylish, and is of the correct blue color. Or, the customer may be dissatisfied because even though the suit fits correctly and is stylish, the blue is not the same color perceived by the customer on the e-commerce site. Various studies confirm that some features of a transaction drive pre-purchase behavior, while others clearly drive post-purchase behavior, while still others may drive both pre- and post-purchase behavior (Gardial et al., 1994; Voss et al., 1998). Griffith et al. (2001) suggest that e-tailers must be careful with how they approach the online shopping experience, because their research has shown that retailers who use catalogs cannot simply duplicate the catalog online, but rather they must provide a more dynamic look to the Web site. Therefore, when retailers do use the Internet they must know which components can or should be manipulated to achieve the desired goals for the Internet shopping experience. While there have been studies that report on attributes such as ease of ordering, product selection, product information, product representation, prices, navigation, delivery, customer service, privacy policies, and shipping and handling (Reibstein, 2002), a search of the literature found no research specifically on color. Either product representation, which had an importance ranking of 3 on a scale of ten in Reibstein’s study, or product information, which had a ranking of 8, might encompass color, but it is unclear into which category consumers would place color. Further, both of these attributes are too broad to isolate the effect of color. Not all researchers agree that specific attributes that characterize the shopping experience can be examined individually. Elliot and Fowell (2000) suggest that individual components of the online shopping experience, when examined in isolation, do not lead to a complete picture of the experience. Instead, they assert that the total experience must be examined in its entirety before it is possible to gain a complete understanding. Burke (2002) also concentrates on the whole shopping experience. While he found that product information was an important factor for Internet sites to provide for shoppers, individual components that may influence the shopping experience, such as color depiction, are not considered. The only means of depicting the color of the products in the research are thumbnails, which are small product photographs, and/or detailed product photographs.

However, Burke did find that the level of “must have” product information ranged from a high of 78 percent for appliances to a low of 37 percent for books. Burke’s research also showed that 8 percent of the respondents preferred to use a variety of channels to investigate new products, and 74 percent use online searches to get product information to make comparisons and evaluate the alternatives. Further, the study showed that consumers prefer using a media that accurately portrays the specific product characteristics under purchase consideration. The Internet rated high for items that were not color sensitive, while catalogs and in-store visits rated high for items such as clothing and furniture, which have an important visual component, as well as for items that were classified as expensive, infrequent purchases such as paint and wallpaper. Consumers indicated that for online purchases of apparel, thumbnails (46 percent) and full-page photographs (41 percent) were important. While this study does not specifically target color considerations, the implications for color include: . the amount of “must have” product information associated with the online purchase of color-sensitive clothing would be relatively high; . consumers prefer a media that accurately portrays product characteristics, which is assumed to include color, and therefore are unwilling to rely on the Internet for an accurate depiction of items with a visual component such as color; and . consumers who shop online consider the visual depiction to be important, and therefore color must be accurately represented. Research performed by Griffith et al. (2001) confirms a need to examine shoppers’ interactions with the Internet. Their study focuses on the fashion industry looking at the differences between catalogs and how products are depicted on the Web. The findings support the concept that simple replication of the catalog on the Web is not appropriate, and that the Web version must have enhancements. Here again the study does not consider color as a variable. Ariely and Carmon (2000) argue that satisfaction with the purchase process outweighs the satisfaction with the product information or even the product itself. This would indicate that Web sites that do a poor job of depicting the color of a product would not be as well regarded as ones that do a good job of depicting color. This also has an effect on return visits to the site; the same way consumers become “regulars” at a traditional store (Alba and Hutchinson, 1987). In fact, Dholakia and Bagozzi (2001) argue that there is a strong similarity between brand loyalty and site loyalty. Reibstein (2002) found that product representation, which may include color, was the third highest factor affecting likelihood to buy again from a particular online merchant. The only two factors rated higher were customer support and on-time delivery. This study focuses on the choice criteria of color because industry studies have shown that color is a critical factor in the selection of fashion products (Business Wire, 1999), and because color is one of a few basic product features that can be visually depicted on a monitor for Internet purchases. It is the only basic product feature that will vary from monitor to monitor, unlike other features, such as style, that will not vary when viewed on different monitors. Industry reports that stress the importance of color, in conjunction with the lack of studies that specifically address color, prompted this research.

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Industry research has shown that while color is a critical factor in the selection of fashion products, customers have come to distrust color accuracy on the Web (Business Wire, 1999). Although 76 percent of Web users shopping for color related items indicate that color accuracy is an important characteristic, 60 percent of the users do not trust the item color as displayed in the product image (Business Wire, 1999). As a consequence of this lack of faith, approximately 30 percent of e-consumers will not purchase color-critical products because they doubt its actual color (Business Wire, 1999). This is especially true for those who shop for clothing and accessories, since color is often a critical factor in the selection of such items. Not only can color inaccuracy discourage purchases, but it may also have post-purchase consequences. When the color of an item that is received does not match what the consumer expects, there is a likelihood that the item will be returned. Bunn (1999) estimates that 40 percent to 50 percent of items ordered over the Internet are returned. He also states these returns are estimated to constitute up to approximately 5 percent of the overall logistics costs within organizations, costs eventually passed on to consumers. According to one industry survey, 15 percent of color-critical items are returned (Business Wire, 1999). In addition, many consumers are dissatisfied but do not return the item for various reasons. According to industry surveys, between 66 percent (Imation, 2001) and 85 percent (Business Wire, 1999) of consumers who received products with an unsatisfactory color did not return the products in spite of their dissatisfaction. Quick (2000) reports that concerns over the ease of returning merchandise are among the main reasons for not shopping online. In addition, dissatisfied customers may simply stop shopping rather than complain or return color-inappropriate fashion items. In fact, one study found that 95 percent of dissatisfied customers don’t complain but simply stop buying from the merchant (US Office of Consumer Affairs, 1986). Industry studies show that over 50 percent of online shoppers would not make future purchases from an online merchant that delivered an item in a color that was not what they expected (Imation, 2001). This is especially significant since Reichheld (1996) reports that a 5 percent reduction in the customer defection rate can increase profits by 25 percent to 85 percent, depending on the industry. In order to retain customers, merchants must keep those customers highly satisfied. When customers are satisfied, they stay loyal longer, buy more, talk favorably about the company and its products, and cost less to service because the transactions become more routine (Kotler, 2000). Keeping customers satisfied is cost effective, since acquiring new customers can cost five times more than the costs involved in satisfying and retaining current customers (Reichheld, 1996). Kotler (2000) notes that it costs more money to lure a customer away from the competition than to keep one. Without the ability to retain customers, Web marketing will fail (Reichheld and Schefter, 2000). In summary, these academic and industry studies indicate that a substantial color inaccuracy problem does exist and does impact online purchasing behavior. When online customers are conditioned to distrust what they see on e-commerce sites, they may make complaints about unsatisfactory items, return those items, or even stop making online purchases altogether. The full effect of this problem needs to be investigated further and the nature of the problem validated. This study is an initial investigation into the pre- and post-sale ramifications of inaccurate color representation on the Internet. Due to the complexity of the color depiction problem,

many approaches must be utilized to understand the full extent of the problem. This study focuses on a specific aspect of the problem. Research questions The research question that prompted this study inquires if the inaccuracy and inconsistency of color representation using computer display equipment negatively influences a consumer’s satisfaction with the online purchase of fashion-related items. This question is far too broad to be accurately accessed as stated. Therefore, the question is broken down into six much more specific questions addressing various parts of the online purchase decision. Not all aspects of the purchase decision are covered due to the researchers’ desire to concentrate on the effects of color on the decision. The distinction between choice criteria and satisfaction drivers (Oliver, 1997) and the research by Gardial et al. (1994) and Voss et al. (1998) laid the foundation for the first research question: “Does the inaccuracy and inconsistency of color representation using computer display equipment negatively influence a consumer’s choice criteria with the online purchase of fashion-related items?” This question is warranted due to industry research reported in Business Wire (1999), and the lack of specific research on color as either a choice criteria or satisfaction driver or as a tangible part of the purchase process (Berry et al., 1990). The second research question comes from research by Berry et al. (1990) on reliability and empathy, and the industry research reported by Business Wire (1999). These studies deal with various forms of trust and therefore the research question is “Does the inaccuracy and inconsistency of color representation using computer display equipment negatively influence a consumer’s trust in purchasing fashion-related items online?” The third research question is “Does the inaccuracy and inconsistency of color representation using computer display equipment negatively influence a consumer’s willingness to purchase fashion-related items online?” This question is also based on Berry et al.’s (1990) research on reliability, which indicates that if a product representation can be relied upon, consumers are more willing to make a purchase, as well as research by Boulding et al. (1993), Richins (1983), Scaglione (1988), Elliot and Fowell (2000), Griffith et al. (2001) and Zeithaml et al. (1996) and the industry research reported in Business Wire (1999). Research into complaint behavior by Singh (1988) and Zeithaml et al. (1996) formed the foundation for the fourth research question. “Does the inaccuracy and inconsistency of color representation using computer display equipment increase the likelihood that a consumer will complain to an online supplier of fashion-related items after having received a product in an unexpected color?” The fifth research question, “Does the inaccuracy and inconsistency of color representation using computer display equipment increase the likelihood that a consumer will return an online purchase of fashion-related items?” is based on the findings of Bunn (1999) with regard to reverse logistics and the return figures reported in Business Wire (1999). The sixth research question is stated as “Does the inaccuracy and inconsistency of color representation using computer display equipment negatively influence a consumer’s intention to purchase fashion-related items online?” Research by Boulding

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et al. (1993) on willingness to purchase and supported by industry research from Imation (2001) and Business Wire (1999) formed the foundation for this question. As the study unfolded, an additional research question regarding the color depiction of fabric items on the Web became evident. The main point was to determine if there are any differences based on demographics. The research question therefore is “Does the perception of inaccuracy and inconsistency of color representation using computer display equipment vary by demographics with regard to the purchase of fashion-related items?”

Research methodology This investigation involved a survey structured to investigate consumer behavior with respect to e-commerce, and was conducted as one facet of a larger project designed to collect data about respondents’ assessments of color accuracy on the Web. The data collection process involved several steps. First, a series of e-mail messages and telephone interviews were utilized to establish if industry leaders agree that the problem of accurate color representation on the Web actually exists. The information gathered in this phase of the study confirmed that a problem exists and that only some Internet marketers are aware of it. In addition, industry feedback provided a partial basis for the questionnaire used in this research project. The next step in the data collection process involved the design of the questionnaire. The questionnaire was structured to provide information about each of the research questions discussed above, and includes questions regarding purchase behavior, purchase intention, complaint behavior and product return behavior. To assess purchase behavior, the questionnaire inquires if respondents have ever purchased products via the Web, and how many purchases were made in the preceding year. Another question inquires if respondents keep the printed catalog in hand when shopping on e-commerce sites. This question was included to verify assumptions made by some leading Internet marketers that consumers always refer to a catalog when shopping on the Web. In order to assess purchase intention, respondents were asked to indicate which type of products they would be willing to purchase online. Since color is the thrust of this research project, another question requests that respondents indicate which products they would not be willing to purchase online if the actual color of the product were in doubt. Another item on the questionnaire asks which items the respondent would return if the color of the actual product differed from its representation on the Internet. Two associated questions were included to provide insights into return behavior. The first asks if respondents have ever actually returned a product because of improper color. The second attempts to assess if they complain about color discrepancies to the merchant. In order to assess customer retention issues, the questionnaire asks if respondents would continue to make purchases from an online merchant that delivered an item in a color that was different than expected. Other questions were included to gather information about consumer trust as well as preferences for color accurate Web sites. Standard demographic questions were included in the questionnaire for classification purposes.

Sample The questionnaire was administered to university students because of the availability of a large number of subjects who represent a cross-section of both experienced and inexperienced Internet shoppers. It is critical to involve experienced users since their familiarity provides them with a more realistic perspective of Internet shopping than inexperienced users. Other research dealing with Fashion Marketing on the Web has used a similar sample (Griffith et al., 2001). Three hundred questionnaires were collected from the students who participated in this study. The respondents are mostly college students who are attending full time (91 percent), and 65.9 percent were between the ages of 21 and 26. The gender distribution was 63.5 percent male and 36.5 percent female. Other demographic breakdowns include 52.5 percent single and 47.5 percent married students, and 67.8 percent have no children at home. Income level was on the lower end, which was expected due to the age distribution and the fact that most are full-time students. The student population was deemed acceptable since the demographics of the school are not traditional, with an older than normal student body. In addition, almost half of the subjects (47.5 percent) are married, and about a third (32.2 percent) have children. Thus, the sample does not suffer from homogeneity to the degree that many student samples. Because many of the subjects are not “typical” college students, they reported previous experience purchase of items such as home accessories and furniture. Data analysis and findings Frequency analysis and crosstabs were the primary tools used to analyze the results of the survey. Frequency analysis is used to determine if the data is entered in a manner that is consistent with the layout of the questionnaire. Since the range of possible answers is known, any responses outside the known and fixed range is a good indication of data entry problems. Sometimes the error is obvious and can be corrected; while other times the data point must be recoded to indicate missing data. Another more important use of frequency analysis is to determine the general description of the sample of respondents. This simple analysis will reveal whether or not the sample matches the population of Internet shoppers. Crosstabs were used to find if there were significant differences between groups. Overall, 14.8 percent of respondents indicated that they have had personal experience with inaccurate color online. Some 78.3 percent of our respondents have purchased online within the year preceding the research point. For those who purchased online, the number of purchases ranged from 1 to 60 with the median number of purchases being four. Most of the respondents (61 percent) indicated that they made between one and eight purchases, while 19 percent of the respondents indicated that they made ten or more purchases during the last year. Table I shows the purchase frequency distribution. Since the thrust of this research was the perception of color on the Web and not the impact of color on purchase, respondents were not queried on the specific nature of their purchases, but rather on product categories (Table II). To confirm what the research team learned from online merchants about online shopping behavior, respondents were asked if they use merchants’ catalogs while ordering online. We found that only 6.0 percent of those who have purchased always use a catalog when ordering, 53.4 percent sometimes use a catalog when ordering online, and 40.6 percent do not use a catalog. Table III shows the results.

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Table I. How many purchases?

Missing Total

0 1 2 3 4 5 6 7 8 10 12 15 16 20 25 29 30 40 50 60 Total System

Items purchased

Table II. Product category purchases

Clothing Fashion accessories Home accessories Indoor furniture Outdoor furniture

Frequency

Percentage

Valid percentage

Cumulative percentage

57 38 43 26 24 26 6 9 3 24 4 7 1 9 3 1 3 1 2 1 288 12 300

19.0 12.7 14.3 8.7 8.0 8.7 2.0 3.0 1.0 8.0 1.3 2.3 0.3 3.0 1.0 0.3 1.0 0.3 0.7 0.3 96.0 4.0 100.0

19.8 13.2 14.9 9.0 8.3 9.0 2.1 3.1 1.0 8.3 1.4 2.4 0.3 3.1 1.0 0.3 1.0 0.3 0.7 0.3 100.0

19.8 33.0 47.9 56.9 65.3 74.3 76.4 79.5 80.6 88.9 90.3 92.7 93.1 96.2 97.2 97.6 98.6 99.0 99.7 100.0

Number of respondentsa

Percentage of respondents

136 82 69 20 37

58.9 35.5 29.9 8.7 16.0

Note: a Number of respondents reporting a purchase greater than total (n ¼ 231) since many made purchases in more than one category

Among those who have purchased in the last year, 12.1 percent have complained to the online merchants if an item delivered did not adequately match the online image (Table IV), and 10.9 percent have returned an item that was delivered in a color different from what was expected (Table V). Over a third (67.9 percent) of those who complained also returned the item in question (Table VI). Of those who complained, only 41.9 percent indicated that they would continue to purchase from a merchant even if they had a color problem (Table VII). To investigate purchase intention, respondents were asked if they have decided not to purchase an item if the color was in doubt. Table VIII shows that 33.9 percent indicated that they have not purchased an item when color was in doubt. Further, 62.3 percent, those who indicated a response of 5 or above on a 7 point scale where 7 is always, indicated that they would complain if an item were delivered in a color that

was not expected (Table IX). Also, 60.1 percent indicated that they would return a product if the item received differed in color from what was expected (Table X).

Examination of the research questions Each of the research questions is examined using the basic descriptive statistics. The results for each question are discussed individually, with additional discussion presented in the Conclusion section that follows.

Valid

Missing Total

Valid

Valid Missing Total

Valid

Valid

Frequency

Percentage

Valid percentage

Cumulative percentage

17 151 115 283 17 300

5.7 50.3 38.3 94.3 5.7 100.0

6.0 53.4 40.6 100.0

6.0 59.4 100.0

Always Sometimes Never Total System

Yes No Total

Yes No Total System

Yes No Total

Yes No Total

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Table III. Use catalog when ordering online

Frequency

Percentage

Valid percentage

Cumulative percentage

28 203 231

12.1 87.9 100.0

12.1 87.9 100.0

12.1 100.0

Frequency

Percentage

Valid percentage

Cumulative percentage

25 205 230 1 231

10.8 88.7 99.6 0.4 100.0

10.9 89.1 100.0

10.9 100.0

Table IV. Complained to online merchant

Table V. Returned items

Frequency

Percentage

Valid percentage

Cumulative percentage

19 9 28

67.9 32.1 100.0

67.9 32.1 100.0

67.9 100.0

Frequency

Percentage

Valid percentage

Cumulative percentage

13 18 31

41.9 58.1 100.0

41.9 58.1 100.0

41.9 100.0

Table VI. Those who have complained and returned

Table VII. Those who complained and continued to purchase

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The first research question was “Does the inaccuracy and inconsistency of color representation using computer display equipment negatively influence a consumer’s choice criteria with the online purchase of fashion-related items?” To assess the level of consumer satisfaction with online choice criteria of fashion-related items, consumers were asked both what fashion-related items would they purchase online and if they would continue to make purchases from an online merchant that delivered an item in a color that was different than expected. Our findings indicate that 58.9 percent would purchase clothing, 35.5 percent would purchase clothing accessories, 16 percent would purchase outdoor furniture, 8.7 percent would purchase indoor furniture, and 29.9 percent would purchase home decorations. It is important to note that 58.1 percent indicated that they would not make a repeat purchase. The second research question was “Does the inaccuracy and inconsistency of color representation using computer display equipment negatively influence a consumer’s trust in purchasing fashion-related items online?” Respondents were asked to indicate their level of trust of the color of products depicted on computer monitors. The average level of trust was 4.4 on a 1 (low) to 7 (high) scale. A total of 21 percent indicated a trust level of 6 while 44.2 percent rated their trust at the mid-point (4) or lower. No difference was found between those who have had a personal experience with poor color

Valid Table VIII. Decided not to purchase due to color

Missing Total

Yes No Total System

Valid Never

Table IX. Likelihood of complaining

Always

2 3 4 5 6 7 Total

Valid Never

Table X. Likelihood of returning

Always

2 3 4 5 6 7 Total

Frequency

Percentage

Valid percentage

Cumulative percentage

79 154 233 2 235

33.6 65.5 99.1 0.9 100.0

33.9 66.1 100.0

33.9 100.0

Frequency

Percentage

Valid percentage

Cumulative percentage

9 34 44 58 59 27 231

3.9 14.7 19.0 25.1 25.5 11.7 100.0

3.9 14.7 19.0 25.1 25.5 11.7 100.0

3.9 18.6 37.7 62.8 88.3 100.0

Frequency

Percentage

Valid percentage

Cumulative percentage

19 30 43 62 56 21 231

8.2 13.0 18.6 26.8 24.2 9.1 100.0

8.2 13.0 18.6 26.8 24.2 9.1 100.0

8.2 21.2 39.8 66.7 90.9 100.0

representation and those who have not. A significant correlation between trust and willingness to purchase was found (Mann-Whitney U ¼ 0:31, Z ¼ 1:875). Considering the level of trust in the color depicted on a monitor, the third research question was stated as ”Does the inaccuracy and inconsistency of color representation using computer display equipment negatively influence a consumer’s willingness to purchase fashion-related items online?” Respondents indicated that fashion items are the ones whose color was least trusted. Most (65 percent) would not purchase clothing if the color was in doubt and 41 percent would not purchase clothing accessories if the color were in doubt. Furniture did not fare well either with 21 percent indicating they would not purchase outdoor furniture, and 50 percent would not purchase indoor furniture if the color were in doubt. A total of 53 percent would not purchase home decorations when the color questioned. Considering the respondents’ attitudes toward trusting color on a computer monitor, it is not surprising that 87 percent of the respondents would return clothing due to color inaccuracies while 62.5 percent of the respondents would return clothing accessories due to color inaccuracies. For home furnishings, 23 percent of respondents would return outdoor furniture, 53.5 percent would return indoor furniture, and 59 percent would return home decorations. Respondents who made an online purchase in the last year were asked to indicate if they have complained to online merchants by responding to the question “Does the inaccuracy and inconsistency of color representation using computer display equipment increase the likelihood that a consumer will complain to an online supplier of fashion-related items?” Our findings indicate that 12.1 percent of purchasers have complained to the online merchants if an item was delivered in a color that was not expected. Respondents who made an online purchase in the last year were also asked if they had returned an item to the merchant by responding to the question “Does the inaccuracy and inconsistency of color representation using computer display equipment increase the likelihood that a consumer will return an online purchase of fashion-related items?” Our findings indicate that 10.9 percent have returned an item that was delivered in a color different from what was expected. Interestingly 67.9 percent of those that complained also returned the item. We asked respondents what items they would purchase online to measure purchase intention of fashion-related items. The question was stated as “Does the inaccuracy and inconsistency of color representation using computer display equipment negatively influence a consumer’s intention to purchase fashion-related items online?” Many of the respondents (58.9 percent) indicated that they would purchase clothing of any kind, while 35.5 percent indicated that they would purchase clothing accessories. For home furnishings, 16 percent would purchase outdoor furniture, 8.7 percent would purchase indoor furniture and 29.9 percent would purchase home decorations such as wall hangings. The final research question was “Does the perception of inaccuracy and inconsistency of color representation using computer display equipment vary by demographics with regard to the purchase of fashion-related items?” We found no significant differences with regard to gender, age or income for any of the research questions investigated.

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Conclusion and discussion Internet marketers of fashion items must be more aware of the consequences of color inaccuracies on an e-commerce site. Conversations with Internet marketers during the initial stages of this undertaking revealed that many think a vast majority of consumers are not concerned with color accuracy when considering making purchases from an e-commerce site. These e-tailers indicated that they assume that their customers normally refer to catalogs when they shop online. Although this may have been a valid assumption in the early days of Internet fashion marketing, this study found that it is no longer the case, with only 6.0 percent of the respondents indicating that they always use a catalog in conjunction with the computer monitor when ordering, as opposed to 40.6 percent who never use a catalog when shopping online. This would support research by Griffith et al. (2001) and Elliot and Fowell (2000) in that marketers must design their Web sites to appeal to users and not rely on other forms of product representation, since users are moving away from using catalogs in conjunction with the Internet. Shoppers must trust that the product they order will be what they receive. However, in this study the average level of trust was only 4.4 on a one-to-seven scale, indicating only moderate trust in color accuracy. In fact, 44.2 percent reported a level of trust below the mid-point of 4, while only 21 percent reported a trust level of 6 or higher. When asked about purchase intention, 29 percent of the respondents indicated that they would not purchase the item of interest if the color were in doubt. This supports the concept that reliability is the most critical dimension to service quality as proposed by Berry et al. (1990) and Parasuraman and Grewal (2000). This study provides support for previous research on Internet shopping behavior and on pre- and post-purchase behavior. This study indicates that companies are losing potential customers and sales as a result of having colors on the Web that do not accurately represent the true colors of the products being sold. This conclusion is based on the level of customer dissatisfaction, trust, rate of complaint behavior (12.1 percent) and return behavior (10.9 percent). Also, with 58.1 percent of respondents indicating that they would not make a repeat purchase from a company that shipped a fashion item that was in a color that was different from what was ordered and expected, it is fair to state that this is a strong level of dissatisfaction and a strong indication that customer retention could be negatively impacted. Increased dissatisfaction on the part of consumers leads to greater costs in both customer service and reverse logistics. For those respondents who made an online purchase in the last year, 12.1 percent have complained to the online merchants if they received an unsatisfactory color. Further, 10.9 percent of those same respondents have returned an item that was delivered in a color different from what was expected. Over sixty-seven percent of those who complained also returned the item in question. This is another indication that companies will incur additional costs if the colors of items on the Web are not accurately represented. This clearly supports the research presented by Imation (2001) and Business Wire (1999) as well as complaint behavior research by Singh (1988) and return behavior research by Bunn (1999). Another area of grave concern is customer retention. Many respondents indicated that they neither complain nor return unsatisfactory items, but simply keep the product and refrain from making future purchases from that Web site which again supports Imation (2001) and Business Wire (1999). Over 58 percent of the respondents

who had previously made purchases indicated that they would not make future purchases if a fashion item were delivered in a color that was different from what was expected. This finding lends support to the research of Boulding et al. (1993), Richins (1983) and Scaglione (1988). As discussed earlier, the impact of poor customer retention can be substantial, so much so that the issue must be addressed. This research will lead to better management of e-commerce through better understanding of the benefits and drawbacks of presenting goods via computer display. This research spotlights the necessity of collaboration between departments within organizations such as information systems, marketing, and operations. This will allow organizations to work more efficiently, leading to improved customer satisfaction and ultimately allowing e-commerce to be more competitive. E-tailers who can offer better color representation on their Web portal can gain a competitive advantage since they will offer a better value to online shoppers. Future research This study reveals a need for future research in multiple directions. With respect to technology, there are several avenues that need exploration. One avenue would be to determine the causes of color inaccuracy when images are viewed, as well as when those images are captured. Another avenue would be to investigate the impact of computer monitors, video cards, image file types, and other technical factors that may influence the delivery and display of color on the Internet. Another interesting avenue of research would be to compare actual color swatches to video images of those color swatches to determine the level of perceived difference in the two samples and to explore means of capturing more accurate color when creating e-commerce sites. With respect to marketing, at least five avenues that need exploration are available. First is the need to determine the significance of color accuracy on overall purchase and post-purchase satisfaction. A second avenue involves further examination of consumer complaint behavior in terms of personal values and propensity to complain. The third is to determine the extent to which color inaccuracy contributes to reverse logistics costs. The investigation of purchasing behavior in a multi-channel environment, especially in cases where a catalog is used in conjunction with the Internet Web site for making the purchase decision is the fourth avenue. The fifth and last avenue is to determine the extent of the correlation between risk aversion and a customer’s unwillingness to purchase color-critical products from an e-commerce site if color accuracy is in question. References Alba, J. and Hutchinson, W. (1987), “Dimensions of consumer expertise”, Journal of Consumer Research, Vol. 13, pp. 411-54. Ariely, D. and Carmon, Z. (2000), “Gestalt characteristics of experiences: the defining features of summarized events”, Journal of Behavioral Decision Making, Vol. 13 No. 2, pp. 191-201. Berry, L.L., Zeithaml, V.A. and Parasuraman, A. (1990), “Five imperatives for improving service quality”, Sloan Management Review, Summer, pp. 29-38.

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Puente, M. (2002), “Online experience is now a much better fit”, USA Today, December 4, p. 2e. Quick, R. (2000), “Return to sender”, Wall Street Journal, July 17, p. R8. Reibstein, D.J. (2002), “What attracts customers to online stores, and what keeps them coming back?”, Journal of the Academy of Marketing Science, Vol. 30 No. 4, pp. 465-73. Reichheld, F.F. (1996), The Loyalty Effect, Harvard Business School Press, Boston, MA. Reichheld, F.F. and Schefter, P. (2000), “E-loyalty: your secret weapon on the Web”, Harvard Business Review, July/August, pp. 105-13. Richins, M. (1983), “Negative word-of-mouth by dissatisfied consumers: a pilot study”, Journal of Marketing, Vol. 47, Winter, pp. 68-78. Scaglione, F. (1988), “Two-way communication: tapping into gripes and profits”, Management Review, Vol. 77, September, pp. 51-3. Sharrard, J. (2001), “Expand globally, comply locally”, Forrester Research, December, available at: www.forrester.com/go?docid ¼ 11947&bin ¼ 20511 Singh, J. (1988), “Consumer complaint intentions and behavior: definitional and taxonomical issues”, Journal of Marketing, Vol. 52, January, pp. 93-107. Stone, M.D. (2001), “Color matching: color (mis)matching, and why colors are matching better than ever”, ExtremeTech, June 11, available at: www.extremetech.com/article/ 0,3396,s ¼ 1011&a ¼ 1701,00.asp US Office of Consumer Affairs (1986), Technical Assistance Research Programs (TARP), Study on Complaint Handling in America, US Office of Consumer Affairs, Washington, DC. Voss, G., Parasuraman, A. and Grewal, D. (1998), “The roles of price, performance, and expectations in determining satisfaction in service exchanges”, Journal of Marketing, Vol. 62, October, pp. 46-61. Zeithaml, V.A., Berry, L.L. and Parasuraman, A. (1996), “The behavioral consequences of service quality”, Journal of Marketing, Vol. 60, April, pp. 31-46.

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About the authors

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Nobukazu J. Azuma Nobukazu J. Azuma is a Research Associate in Fashion Studies and Business Organisation at The School of Management and Languages, Heriot-Watt University, Edinburgh. He currently works full time as assistant professor at The Institute of Marketing and Distribution Sciences in Kobe, Japan. Emma N. Banister Emma N. Banister is Lecturer in Marketing at Lancaster University Management School. Her first degree was in Politics and History at Newcastle University and she completed an MSc in Marketing in 1997 and was awarded her PhD in 2002, both at the School of Management, UMIST. She took up her appointment at Lancaster University in July 2003 after three years spent as Lecturer in the Department of Textiles, UMIST. Her research interests focus on consumer behaviour, specifically symbolic consumption (particularly distastes and the negative meanings associated with products, and young consumers). She has published in Journal of Marketing Management and Journal of Customer Behaviour and presented papers at a number of conferences including US and European meetings of the Association for Consumer Research. Grete Birtwistle Dr Grete Birtwistle is the Head of Division of Marketing at the Caledonian Business School, Glasgow Caledonian University. She has extensive fashion retailing experience and her PhD investigated the area of store image and store positioning for fashion retailers. In particular, she highlighted the importance of retail staff perception of store image factors and that employees should be advocates of the company. She has published a number of papers and made contributions to books, mainly on areas of fashion marketing. Her current research explores ways of increasing the speed in the fashion supply chain and in order to achieve this she is interviewing both suppliers at different stages within the chain as well as buyers and logistics managers from retail companies. She is a member of the Glasgow Centre for Retailing and through this forum provides business with training courses and consultancy advice. Her main teaching areas are fashion marketing, integrated fashion logistics and integrated fashion communication. She has recently been a guest lecturer at Florida State University in Tallahassee and Monash University, Melbourne.

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Steve Burt Steve Burt, BA (Oxford), PhD (Stirling) is Professor of Retail Marketing, at the Institute for Retail Studies in the Department of Marketing, University of Stirling, a post held since 1998. Since 2000, he has been a Visiting Professor of Marketing and Retailing at the Institute of Economic Research, Lund University, Sweden. He is President of the European Association for Education and Research in Commercial Distribution. Steve’s research interests include various aspects of the retail internationalisation process, comparative retailing, structural change in retailing and retail branding. This research has been published in a range of academic journals including the British Journal of Management, the European Journal of Marketing, the Journal of Marketing

Management, and the International Review of Retail Distribution and Consumer Research.

About the authors

Belinda Dewsnap Belinda Dewsnap is a Lecturer in Marketing at the Business School, Loughborough University, UK. Belinda joined Loughborough in 1995. Prior to this she held positions in sales, trade marketing, commercial and logistics for two multi-national organisations and was Operations Manager of a consumer goods company. Her current major research focuses on the marketing-sales interface, and on organisation structures for marketing.

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John Fernie John Fernie is Professor of Retail Marketing and Head of School of The School of Management and Languages at Heriot-Watt University, Scotland. He has written and contributed to numerous textbooks and papers on retail management, especially in the field of retail logistics and the internationalisation of retail formats. He is editor of the International Journal of Retail & Distribution Management, published by Emerald, and received the prestigious award of Editor of the Year in 1997 in addition to Leading Editor awards in 1994 and 1998 and 2000. He is on the editorial board of the Journal of Product and Brand Management, also published by Emerald. He is an active member of the Institute of Logistics and Transport and the Chartered Institute of Marketing in the UK as well as holding office in the American Collegiate Retail Association. In 2001 he became a member of the Logistics Directors Forum, a group of leading professionals in supply chain management and logistics in the UK. Ann Marie Fiore Ann Marie Fiore is an Associate Professor in the College of Family and Consumer Science at Iowa Stae University. Her research focuses on hedonic experience and consumer behaviour. Some of her publications appear in the Clothing and Textiles Research Journal, Journal of Fashion Marketing and Management, Journal of Interactive Marketing, Internet Research: Electronic Networking Applications and Policy, and Psychology and Marketing. She is the first author of the textbook Understanding Aesthetics for the Merchandising and Design Professional. She has been awarded an Emerald Publications Literati Club 2003 Highly Commended Award for a paper published in the Journal of Fashion Marketing and Management. Cathy Hart Cathy Hart is Senior Lecturer in Retailing and Operations Management at the Business School, Loughborough University, UK. Prior to entering academia in 1992, Cathy worked first as a designer and marketing manager in the apparel sector before moving to the retail industry. Her research interests include merchandise assortment strategy in food and fashion retailing, and store image. Margaret K. Hogg Margaret K. Hogg is Reader in Consumer Behaviour at Manchester School of Management, UMIST; and will be Professor of Consumer Behaviour and Marketing at Lancaster University Management School from May 2004. She read Politics and Modern History at Edinburgh University, followed by postgraduate studies in History at the

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Vrije Universiteit, Amsterdam and then by an MA in Business Analysis at Lancaster University. She spent six years working in Marketing with K Shoes, Kendal. Prior to joining UMIST she completed a PhD at Manchester Business School in Consumer Behaviour and Retailing. She teaches consumer behaviour at undergraduate and postgraduate levels. She was the joint winner of the 1999/2000 UMIST Millennium Prize for Teaching Excellence; and joint winner of a UMIST/University of Manchester award for Innovation in the Curriculum in 2002. Her research interests include consumer behaviour, retailing and marketing history. Her work has appeared in refereed journals including: Consumption, Markets and Culture; Journal of Marketing Management; European Journal of Marketing; and International Journal of Advertising. She has presented papers at a number of international conferences including US meetings of the Association for Consumer Research and the Society for Consumer Psychology. Eun Young Kim Dr Eun Young Kim is a Visiting Research Scholar of Merchandising at University of North Texas, Denton, Texas. She received her PhD at Chungnam National University, Daejeon, South Korea. Prior to working for University of North Texas, she was a Lecturer at Chungnam National University. Her teaching interests are consumer behavior and retail strategies. She has published in Family and Consumer Science Research Journal and Clothing and Textiles Research Journal. Youn-Kyung Kim Dr Youn-Kyung Kim is an Associate Professor of Retail and Consumer Sciences at the University of Tennessee, Knoxville, Tennessee. She received her PhD at University of North Carolina-Greensboro. Her teaching interests are consumer behavior and research methods. Her research has been published in numerous journals including Journal of Retailing and Consumer Services, Journal of Advertising Research, International Journal of Retail & Distribution Management, Journal of Shopping Center Research, and Family and Consumer Science Research Journal. Dennis W. Krumwiede Dennis W. Krumwiede, PhD, Associate Professor, joined the Idaho State University College of Business in Fall 2000. He has a BS in industrial engineering from the University of Nebraska, an ME in engineering management from the University of Colorado at Boulder, and a PhD in engineering management from Kansas State University. Before joining ISU, Krumwiede had 15 years of industrial experience in the telecommunications and aerospace industries. He has traveled in over 45 countries. He has taught at Kansas State University and Central Missouri State University prior to joining ISU. He has published in the Engineering Management Journal, Production Inventory Management Journal, International Journal of Management, Occupational Ergonomics, Journal of Integrated Manufacturing Systems, Omega, and Total Quality Management. His research focuses on TQM, project management, theory of constraints, enterprise resource planning, and logistics. Grace I. Kunz Grace I. Kunz is an Associate Professor Emeritus in the College of Family and Consumer Sciences at Iowa State University. Her research has focused on merchandising processes, particularly merchandise budgets and assortment

planning. Her research has been published in Clothing and Textiles Research Journal, Journal of Fashion Marketing and Management, and Journal of Small Business Management. She is coauthor of Apparel Manufacturing: Sewn Products Analysis and author of Merchandising: Theory, Principles, and Practice. She is an International Textiles and Apparel Association Fellow.

About the authors

Seung-Eun Lee Seung-Eun Lee is an Assistant Professor in the College of Human Ecology at the University of Minnesota. Her research addresses issues of mass customization, electronic retailing, and independent retailing. She has published in the Clothing and Textiles Research Journal, the Journal of Fashion Marketing and Management, and the Journal of Industrial Technology. Her dissertation research on Internet marketing of cultural products received the outstanding dissertation award from the International Textile and Apparel Association.

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Christopher Moore Professor Christopher Moore is the Scotmid Chair in Retailing at Glasgow Caledonian University. His PhD investigated the internationalisation of fashion retailers. His recent research work has examined the international strategies of luxury brands and he is co-author of two new textbooks in the areas of retailing and international fashion marketing. He is Director of the MSc in Fashion Marketing and teaches in the areas of fashion marketing management. As Director of the Glasgow Centre for Retailing, he has undertaken extensive commissioned research and consultancy projects for many leading retailers and other consumer-facing organisations. Andrew Newman Andrew Newman lectures in retail operations and customer behaviour on the MBA and corporate programmes at Manchester Business School. He has attracted considerable research funds for the University of Manchester by way of government funding and collaborative ventures with various commercial partners. These include KTP/DTI projects that focus on retail sourcing and knowledge management, the reengineering of a fashion retailer’s supply chain systems, and EPSRC funded work that explored the planning of retail store layouts and customer movement patterns. Andrew is also co-investigator for an EPSRC retail network that commenced in November 2003. Andrew’s doctoral students research in areas of business process reengineering, retailer branding and loyalty, the internationalisation of retailing and retail consumer behaviour. He also publishes in journals and appears frequently in the media as an expert in retail customer behaviour. Andrew’s latest book is entitled Retailing: Environment and Operations and is published by Thomson Learning. Before entering academic life, Andrew spent 23 years working for British Airways in areas marketing and customer services. Philip S. Nitse Philip S. Nitse, PhD, is a Professor and the Chair of Marketing at Idaho State University. He has a BS in Marketing from Arizona State University, an MBA in Marketing and a PhD in Marketing from The University of Memphis (1994). His areas of research interest include competitive intelligence, e-commerce, health care marketing, direct marketing, and sales management. He has published in Marketing Intelligence & Planning, Competitive Intelligence Review, Journal of Health Care

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Marketing, The Reference Librarian and Industrial Marketing Management amongst others. He has over 18 years in sales and sales management experience. Aron O’Cass Professor Aron O’Cass is Chair of Marketing at the University of Newcastle. He holds a Bachelor of Commerce majoring in Marketing, a Master of Business majoring in Marketing and a PhD in Consumer Behaviour. Professor O’Cass has published research on issues related to political marketing, voter behaviour, brand perceptions, consumer behaviour, export marketing, fashion and numerous other issues. His publications appear in journals such as the European Journal of Marketing, Journal of Economic Psychology, Journal of Product & Brand Management, Journal of Vacation Marketing, Journal of Advertising and the Journal of Consumer Behaviour amongst others. Thomas A. Ottaway Thomas A. Ottaway is an Associate Professor in the Computer Information Systems Department at Idaho State University, having previously held academic appointments at Kansas State University and the University of Montana. He holds a BS in Computer Science from Wichita State University (1991), an MS in Management Information Systems from Texas Tech University (1993), and a PhD in Production/Operations Management from Texas Tech University (1995). He has published in Decision Sciences, International Journal of Production Research, Journal of Economics and Finance and the Journal of Financial and Economic Practice. Dr Ottaway’s teaching interests include data and telecommunications networks as well as computer programming. Kevin R. Parker Kevin R. Parker is an Associate Professor of Computer Information Systems at Idaho State University. He has taught courses in both computer science and information systems over the course of his thirteen years in academia. Dr Parker’s research interests include e-commerce marketing, competitive intelligence, information filtering, and knowledge management. He has published several papers in these areas including publications in Marketing Intelligence & Planning, Journal of Information Systems Education, and The Reference Librarian. Dr Parker’s teaching interests include object-oriented development, emerging technologies, and database management systems. Dr Parker holds a PhD in Management Information Systems from Texas Tech University. Darshika Patel Darshika Patel graduated from the University of Manchester, Institute of Science and Technology with a Bachelor of Science degree in 2002. She is currently studying for a PhD in retail consumer behaviour funded by an EPSRC doctoral training programme at Manchester Business School.