Am I cheap? Testing the role of store personality and self-congruity in discount retailing

Abstract

This study examines whether consumer perceptions of store personality differ according to the store’s format (hard-discount versus soft-discount and value retailing). A consumer survey (n = 306) is conducted in which respondents are asked to rate these retail formats on five store personality (SP) dimensions and in terms of self-congruity (SC). The findings of both repeated measures ANOVA and hypothesis testing of proportion difference indicate that the three formats differ significantly in terms of all five SP dimensions. Moreover, consumers perceive a greater match between their self-concept and the value retailer’s personality than the discounter’s. A PLS model is estimated linking SP and SC to store loyalty and word-of-mouth intentions (WOM). The SP measurement model is only partially confirmed by the data. The effect of SC is found to dominate in explaining loyalty and WOM. These results provide valuable insights for optimizing retail positioning strategies.