Leed, Theodore W.

English

Research Papers in Economics

Table 4. Product Items Customers Commonly Associated with Convenience Stores
% of Customers Range in % of Customers
Identifying this Identifying this Category
Product With Convenience Between Competing
Category Stores Convenience Stores
Bread 63 59 - 84
Milk 61 58 - 73
Beverages 36 36 - 43
Cigarettes & Tobacco 17 16 - 18
Snack Foods 16 16 - 18
Newspaper & Magazines 10 8-10
7’C*>’+7WC$C$C ***7’C7W*
ANOTHER LOOK AT CUSTOMER IMAGE STUDIES
by
Theodore W. Leed
Professor of Food Marketing
University of Massachusetts
Amherst, Massachusetts
It has been about 15 years since
Ricker first used the mail survey rating
system to develop customer images of
competing supermarkets in market areas.
Since that time the technique has been
used by Leed, Marion, Watkins, Skinner
and others as a means of developing
competitive strategy recommendations for
food retailing firms. Although some
adaptations have been made, the basic
format of the questionnaireremains
essentially the same with respect to
the attribute ratings. (Exhibit 1)
It would seem appropriate at this
time to review the “state of the art”
in relation to what we have learned
about customer perception or image, how
the knowledge has been used and how we
can improve the technique and its
application to the management decision-
making process. I will use the technique
and results of our latest consumer image
survey in Massachusetts as illustrations.
What We Have Learned
Based upon our rating studies in
Massachusetts as well as those con-
ducted elsewhere, we can formulate some
general conclusions.
1. Relatively high rates of
response, usually greater than 30%.
2, Consumer selectivity in evalua-
tion of quality and prices among major
product categories.
)urnalof Food Distribution Research February 76/page 1133. Apparent accuracy of consumer
perception of price level differences
among firms.
4. Consumer images of particular
companies seem to change over time.
5. Consumer image usually differs
from management’s self-image in at least
one respect.
6. The need for localizing the
surveys on a trading area basis.
Use of Results
The use of image studies by firm
management in modifying competitive
strategy and the results obtained are
the true test of the value of the tech-
nique. There is relatively little in-
formation available concerning applica-
tion and results. Most of the literature
has dealt with the mechanics of the
technique, the results obtained from the
surveys and conceptual analyses of the
incorporation of results into firm
strategy. The results of these surveys
have also been used widely in developing
case studies for educational purposes.
This is not to say that the surveys have
not been useful to management, but that
there probably has been little effort to
evaluate the use of image study results.
In addition, it is difficult to identify
and relate changes in competitive
strategy to the availability of survey
results.
There is evidence, however, that
management has used image studies in
formulating or revising marketing
strategy. In our most recent survey in
Massachusetts the firm that sponsored
the study indicated that the final
decision to implement some major changes
in strategy was based upon the survey
results which indicated that consumers
rated their grocery prices as being sub-
stantially higher than those of their
major competitor in the test market area.
As a result, the firm has dropped store
coupons, reduced grocery prices and
increased newspaper advertising in
order to achieve a lower grocery price
image. Preliminary results show that
sales have increased and gross margin
in the grocery department has declined
by one and one-half percent. Although
it is too soon to determine the overall
effect on net profit, the firm is
absolutely convinced of the value of
consumer image studies and plans to
conduct similar studies in other trad-
ing areas where they are operating
supermarkets.
Future Directions
Finally, we need to identify
future directions for consumer image
studies in terms of the collection and
analysis of data and the use and eval-
uation of results. The following sug-
gestions and questions may be relevant.
1. How large do sample sizes
need to be?
2* The computer can facilitate
the analysis of data and reduce the
cost*
3. How can the relative impor-
tance of the various attributes of
image be determined?
4. The need to develop formalized
procedures for evaluating the use of
image studies in revising the competi-
tive strategy of food retailing firms.
I hope that this paper will serve
to stimulate additional research that
will enable food retailing firms to
respond to consumer needs more effec-
tively through consumer image surveys.
February 76/page 114 Journal of Food Distribution ResearExhibit l’~
Please rate
Here is the
the food stores listed below that you are familiar with.
rating system we would like you to use,
(A) Excellent Example:
(B) Good .
(C) Fair Store X Store Y
(D) Poor Weekly
specials AB@D A@C D
Circle either A, B, C, or D land coupons I I 1
for each rating.
FOOD SHOPRITE
Meat quality
Meat prices
Fresh fruit
and vegetable
quality
Fresh fruit
and vegetable
prices
Groceryprices
Assortment of
merchandise
Convenience o:
store loca-
tion
Weekly
specials and
co~pons
Store layout
Courtesy and
friendliness
Cleanliness
and neatness
Checkout
Service
A&P
‘arkerSt.
ABCD
ABCD
ABCD
ABCD
ABCD
ABCD
ABCD
ABCD
ABCD
ABCD
ABCD
ABCD
~~Letter ratings converte(
A&P
North
Main St.
ABCD
ABCD
ABCD
ABCD
ABCD
ABCD
ABCD
ABCD
ABCD
.4BCD
ABCD
ABCD
to numer:
ARMATA‘S
Allen St.
ABCD
ABCD
ABCD
ABCD
ABCD
ABCD
ABCD
ABCD
ABCD
ABCD
ABCD
ABCD
BIG-Y
Parker St.
ABCD
ABCD
ABCD
ABCD
ABCD
ABCD
ABCD
ABCD
ABCD
ABCD
ABCD
ABCi)
BIG-Y
North
Main St.
ABCD
ABCD
ABCD
ABCD
ABCD
ABCD
ABCD
ABCD
ABCD
ABCD
.4BCD
ABCD
MART
Cooley St.
ABCD
ABCD
ABCD
ABCD
ABCD
ABCD
ABCD
ABCD
ABCD
ABCD
ABCD
.4BCD
al values on basis of A = 1, B = 2, C = 3 am
Cooley St.
ABCD
ABCD
ABCD
ABCD
ABCD
ABCD
ABCD
ABCD
.4BCD
ABCD
ABCD
.4BCD
D 4. =
urnal of Food Distribution Research
-k**7’owc**>k***?wc*
February 76/page 115

ANOTHER LOOK AT CUSTOMER IMAGE STUDIES

Abstract

Similar works

Full text

Available Versions

Research Papers in Economics