Store image perceptions and customer knowledge cues in emerging markets

Abstract

Purpose International retailers operating in different emerging countries should figure out how their store image is perceived across these countries and whether they should adapt or standardise the retail offer. The purpose of this paper is to investigate how store image is perceived across different emerging markets and how it relates to customer knowledge cues and personal characteristics. Design/methodology/approach A store-intercept survey undertaken in Brazil and Vietnam generated 505 usable responses from customers of two metropolitan cities (Brasilia and Hanoi), respectively, in Brazil and Vietnam. The questionnaires were collected in Extra (Brazil) and Big C (Vietnam) retail chains belonging both to the same group (Casino, France). Findings Overall, this paper reveals that emerging market customers assess positively modern retail stores and are concerned about services, merchandise, and store layout when shopping. More specifically, the results indicate differences and similarities between Brazilian and Vietnamese customers in terms of store image attributes, store image dimensions, and overall store image. Moreover, customer knowledge of retailers affects store image perceptions at different levels in both countries. Also, significant differences arise across age, gender, and education in both countries, but not across household income categories. Research limitations/implications Respondents were customers of only two emerging markets (Brazil and Vietnam) and shoppers of two retail chains (Extra and Big C). Caution should therefore be exercised when generalising the results to other emerging markets. Practical implications The paper shows both differences and similarities in store image perceptions in different emerging countries. Because store layout is more positively rated in Brazil than in Vietnam, retailers should be careful to that attribute. In both countries, to improve assortment perceptions, managers might focus on first price (budget) store brands, which can help diversify the assortment and attract less wealthy customers. The service dimension also demands careful management, but personnel training should mirror the local culture. Originality/value This research highlights differences and similarities between Brazilian and Vietnamese customers in terms of store image perceptions. It shows that store image mechanisms are similar in emerging countries as in developed countries. Furthermore, the paper is the first to relate store image perceptions to customer knowledge cues in emerging countries.