International Journal of Retail & Distribution Management

Emerald Article: Exploring the connections between visual merchandising and retail branding: An application of facet theory Barry J. Davies, Philippa Ward

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To cite this document: Barry J. Davies, Philippa Ward, (2005),"Exploring the connections between visual merchandising and retail branding: An application of facet theory", International Journal of Retail & Distribution Management, Vol. 33 Iss: 7 pp. 505 - 513 Permanent link to this document: http://dx.doi.org/10.1108/09590550510605578 Downloaded on: 17-12-2012 References: This document contains references to 30 other documents Citations: This document has been cited by 3 other documents To copy this document: permissions@emeraldinsight.com This document has been downloaded 4614 times since 2006. *

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Barry J. Davies, Philippa Ward, (2005),"Exploring the connections between visual merchandising and retail branding: An application of facet theory", International Journal of Retail & Distribution Management, Vol. 33 Iss: 7 pp. 505 - 513 http://dx.doi.org/10.1108/09590550510605578 Barry J. Davies, Philippa Ward, (2005),"Exploring the connections between visual merchandising and retail branding: An application of facet theory", International Journal of Retail & Distribution Management, Vol. 33 Iss: 7 pp. 505 - 513 http://dx.doi.org/10.1108/09590550510605578 Barry J. Davies, Philippa Ward, (2005),"Exploring the connections between visual merchandising and retail branding: An application of facet theory", International Journal of Retail & Distribution Management, Vol. 33 Iss: 7 pp. 505 - 513 http://dx.doi.org/10.1108/09590550510605578

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Exploring the connections between visual merchandising and retail branding

An application of facet theory
Barry J. Davies and Philippa Ward
CeReS, University of Gloucestershire Business School, Cheltenham, UK
Abstract
Purpose TThe purpose of this paper is to review the literature on facet theory and present an approach to map the relationship between retail branding (particularly brand recognition) and visual merchandising. Design/methodology/approach Fact theory has been used in other areas of investigation, particularly for the examination of the built environment within psychology. However, it has received little attention in either the marketing or retailing literature. This is surprising as facet theory also provides a conceptually stable and fully formed approach to: the denition of an area of interest; the statement of the proposed relationships between areas of interest; the development of a research instrument that is fully cognisant of the possible relationships; and also utilizes a form of analysis that explores the actual presence of the hypothesized relationships (smallest space analysis SSA). Findings The application of facet theory and SSA were found to be particularly appropriate for an investigation of the relationship between retail branding and visual merchandising. This stems from the clear and consistent approach that is derived by using this method to structure the research. Originality/value This paper demonstrates facet theory provides a validated and robust approach to investigate a complex but managerially signicant area in retailing. Keywords Merchandising, Brands, Research methods Paper type Conceptual paper

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Introduction The notion of brand has become a quintessential element in the spheres of production, distribution and consumption. There is little that remains unbranded in some respect, and, even those that seek to create goods devoid of the obvious visual trappings of brand do so by constructing a specic and clear set of values around their products. Branding has, therefore, become one of the most important aspects of business consideration irrespective of sector or product. Retailers have been just as involved in branding issues as the manufacturers of consumer goods, or those selling business-to-business services. However, retailers efforts at branding draw on a different array of tools and components to those organizations in different sectors. Retailers have at their disposal the usual elements of brand identity: name, symbol, packaging, and advertising. They can additionally draw on those dimensions that have been identied in studies of store image (Davies and Ward, 2002, p. 178 drawing on
The authors would like to thank Professor Ian Donald, Department of Psychology, University of Liverpool, for his assistance in providing an initial map to this territory.

International Journal of Retail & Distribution Management Vol. 33 No. 7, 2005 pp. 505-513 q Emerald Group Publishing Limited 0959-0552 DOI 10.1108/09590550510605578

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the work of, for example, Bloemer and de Ruyter, 1998; Grewal et al., 1998; Lindquist, 1974; Martineau, 1958; Porter and Claycomb, 1997). (1) Merchandise: . assortment; . quality; . brand mix; and . price. (2) Store: . location; . environment (internal and external); . atmosphere; and . name/fascia. (3) Service: . personnel; and . levels and quality. (4) Promotion: . advertising/public relations; and . in-store. The physicality of the store This rich and diverse range of branding components means that retailers need to consider and manipulate a wide range of issues when developing a brand. Of particular importance, and a clear distinguishing factor in retail brand development, is the physicality of the store this includes merchandise, in-store promotion and the issues of location, environment and atmosphere. These elements mean design is brought to the fore and, in particular, it is visual design that is emphasised (Kent, 2003). The signicance of the visual is also reected in the attention that has been given to the physicality of retail provision and can be seen in the extensive literatures that have developed around particular issues, for example, of retail location; retail atmosphere; servicescape and merchandise selection and display. The literature that considers retail physicality can be divided between those that consider the internality of the store, and those that focus on its externality. This is, in part, a false division as, for example, store atmosphere is derived from both external and internal cues. The tendency to concentrate on either the in-store or the external attributes of the retail offer is understandable as an attempt to manage the complexity and diversity of the research task. In attempting to draw together aspects of retail image, store physicality, and retail brand, following such a focused approach would appear well advised. The majority of earlier work most closely associated with the development of retail brand concerns in-store aspects of retail physicality. Therefore, internal aspects of stores provide the general basis for this paper. Even when considering the in-store environment, the possible array of issues is still extensive ranging from internal architecture to ambient scent. The identication of a more focused foundation for initial consideration is thus required.

Of the in-store aspects considered within the literature, it is those associated with the visual that are predominant (Davies and Ward, 2002). However, within this research little attention has been paid to the issue of visual merchandising and display (Lea-Greenwood, 1998). This is particularly surprising as the number of the internal store aspects identied above, e.g. merchandise, atmosphere and in-store promotion, are reminiscent of Omars (1999) classication of interior display types: merchandise, point-of-sale and architectural. The similarity between aspects of retail image and interior display types also helps to highlight the potential connection between display and the development and communication of a retail brand. Of the three display types, that related to merchandise has received the most attention. This is demonstrated by the scope of the research that has been conducted in the area. Such work has considered: layout (Levy and Weitz, 1996; Berman and Evans, 1995); xturing (Levy and Weitz, 1996; Donnellan, 1996); merchandise (Davies and Ward, 2002; Kerfoot et al., 2003); presentation techniques (Buchanan et al., 1999); colour (Koelemeijer and Oppewal, 1999), and packaging (Bruce and Cooper, 1997; Da Costa, 1995). However, it is also true that researchers working in these areas may not have characterized their work as being directly grounded in aspects of visual merchandising and display. This lack of recognition adds further weight to Lea-Greenwoods (1998) comments and likewise begins to explain the lack of a systematic examination of the topic of merchandise display. There is also little work that draws together these aspects, or indeed that specically considers the inuence of such elements on retail brand. This paper seeks to provide a basis for connecting notions of merchandise display with the development and communication of retail brand. It does so by drawing on previous research in germane areas and applying a specic approach to the development of the methodology. In doing this, the paper seeks to assist future work in the area and develop a solid foundation for exploring potential relationships. A proposed approach The broad-ranging issues highlighted in a brief examination of the literatures on visual merchandising and display, branding, and store image provide both opportunities and problems for the researcher. The range of possibly pertinent factors means that the problem is multivariate in its nature. Therefore, on one hand, this ensures that researchers have a rich starting point from which to examine the possible relationship between visual merchandising and retail brand. On the other, this same multivariate nature makes the task of examining the potential relationships a complex one. The extent of possible variables (examined to various degrees by different researchers) leads to two particular problems. These are not unique to research considering visual merchandising and store branding, but can also be found in any research area where the issues are behaviourally complex in relation to stimuli. The rst problem relates to the articulation of a clear, well dened and appropriately constructed set of research problems. No single variable, or indeed, subset of variables, provides an easy platform from which to build a coherent basis for further research. The second problem lies in taking a throw it all in the pot approach. In such situations, researchers often fall back on the use of factor-analytic approaches to stir the mix and see what coalesces. Whilst factor analysis has its strengths as an approach, it is also perhaps overused in situations where researchers face complex sets of variables and grasp at a technique that promises to reduce this complexity to a

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more manageable (and more easily communicated) level. Factor analysis also enforces linear relationships on the dimensions it examines where, in fact, they may not exist and equally, it does not allow for the existence of non-linear relationships (Donald, 1994). Such concerns are not new and were rst voiced by Louis Guttman and his colleagues in the 1960s and 1970s. This group of psychologists saw problems with the selection of items for test construction and with the weakness in factor-analytic procedures as well as with the lack of clarity of existing approaches to the denition of research problems (Brown, 1985, p. 19). In an attempt to overcome such issues, Guttman and his colleagues developed and championed the use of facet theory. Facet theory In 1979 facet theory was seen as . . .provid[ing] an effective approach for fruitful design of content, leading to appropriate data analysis techniques, and producing laws of human behaviour in a cumulative fashion. One byproduct is the establishment of more solid bases for policy decision. This last point has meant that the approach has a particular resonance with applied research, where the simplifying of a problem to enable the application of hypo-deductive methods may render the solution gained impractical or force it to consider the potentially trivial (Canter, 1983). Facet theory is an attempt to describe (empirically) an area of interest before research is conducted and thereby provide a strong foundation for what follows and, in essence, gives a form of input logic that directs the work (White and Mitchell, 1976). Facet theory does not start from the proposition that every possible variable should be included, rather it encourages the researcher to consider what should be considered and, perhaps most importantly, how the variables are connected. It has been argued that these features are the starting point for all good research (McGrath, 1967). However, Donald (1995) proposes that facet theory explicitly provides a systematic approach to presenting denitions and guiding researchers efforts. Facet theory requires the following broad pattern of activity to be implemented. The approach centres on the development and operationalization of a mapping sentence, to present a semantic structure within which the variables can be viewed (Donald, 1995). (1) Denition of the domain (a statement of the area to be considered); in this context, aspects of visual merchandising, and their inuence on retail brand evaluations. (2) A search of the appropriate literature to nd the main components (facets) associated with visual merchandising that may inuence retail brand evaluations. This may be supported by empirical investigation by interviewing customers in stores to further dene what components are important in this context. (3) From this basis, the identication of particular types of facet: . background facets: describe the context of the study and/or its population, e.g. gender; . domain facets: describe what is being evaluated, e.g. aspects of visual merchandising; and . range facets: describe the possible responses to the stimuli provided by the domain facets, e.g. increases a great deal to decreases a great deal. (4) Within each facet, dene the elements it contains. This is done to determine the different values or the points that logically and completely describe all the

(5) (6)

(7) (8)

variation of the [facet] (White and Mitchell, 1976, p. 60). [This listing once complete constitutes a Cartesian set, and it is the logic of Cartesian space that provides the underpinning of facet theory.] Once the elements of the facets are dened, the mapping sentence can be articulated. The sentence enables every possible combination of elements to be expressed and these combinations (subsets of the Cartesian set, termed structuples) present the different subjects requiring investigation (Hornik, 1974a, b). This representation can then be used to create questions that form the basis of a research instrument. Data collection. Analysis of the relationships between structuples is then undertaken this is most commonly done through the application of smallest space analysis (SSA).

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Applications of facet theory Facet theory has been used successfully in a number of social sciences (Canter, 1983, 1985; Donald, 1994; Donald and Cooper, 2001; White and Mitchell, 1976). It has also been suggested as a useful approach in the eld of marketing (Hornik, 1974a, b), but has not been used to any great extent. One notable exception is the work of Hackett and Foxall (1997), which uses facet theory to examine consumers evaluations of the physical environment within an international airport. Hackett and Foxall (1997) also note that facet theory has been effectively used to consider issues related to the built environment by researchers in the elds of environmental psychology and architecture (Canter and Kenny, 1981, 1982). This previous research has led to the development of a general mapping sentence (GMS) for the assessment of peoples interaction with the built environment that:
. . .require[s] that a specied person evaluate the environment in terms of its social, spatial or service qualities (REFERENT facet), its overall essence, general qualities or specic aspects (FOCUS facet) which require local, intermediate or greater levels of interaction with the environment (LEVEL facet) at immediate, intermediate or global environmental scales (SCALE facet) (Hackett and Foxall, 1997, p. 341).

This provides a strong starting point for the development of an approach that seeks to consider the inuence of visual merchandising on customers behaviours within the built environment. Developing a mapping sentence The built environment in this research context is dened as concessions within department stores. This context presents retailers with particular challenges particularly in relation to creating a strong brand within a cluttered retail brand context. The communalities of architectural and point-of-sale between concessions also mean that a clearer focus on the merchandise aspects of the environment can be established. This is particularly important when assessing a number of retail brands as it enables these factors to be held constant. However, the built environment GMS does not fully reect the requirements of this research, as this work also seeks to examine the customers interaction with visual merchandising elements and their subsequent retail brand assessment and recognition.

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In order to reect these aims, a mapping sentence that is based on the broad tenets of the built environment GSM has been developed:
. . .to examine the extent to which the [visual/haptic (as represented visually) REFERENT FACET] aspects of concessions in department stores tend to increase/decrease [RANGE] the likelihood of the consumer [noticing/entering/browsing/purchasing GOAL FACET] from the concession and their ability to recognize/or not the concession and their evaluations of the concessions brand.

510

This sentence covers a broad range of visual merchandising aspects. Therefore, to facilitate the development of an easily operationalized questionnaire, previous research ndings (Kerfoot et al., 2003) were used to limit the elements of specic interest with the referent facet. The elements selected were: general look; colour of the merchandise; merchandise display/presentation; style of the xtures; the materials used in the xtures and ttings and lighting. This previous research was also used to dene the nature of the specied person young female fashion lovers aged 18-26. This group (dened by a department store chain) is often highly involved with fashion and retail environments and thus provides an appropriate population from which to examine the connections between visual merchandising and retail branding. The specication of the population enables the completion of the mapping sentence and thereby denes the nature of this research. The development of the questions The completed mapping sentence and the specication of particular facets enables the development of the research instrument. The formation of the items takes the following pattern, which is based on the elements of the referent and goal facets:
Using the scale below for each statement. . . Increases a great deal 5 4 3 2 1 Decreases a great deal Would the general look of this concession increase or decrease the likelihood that you would. . . . . . notice the concession? . . . go and look at the concession? . . . browse the concession? . . . purchase from the concession?

The three questions detailed below address the nal aspects of the mapping sentence, which seeks to explore brand evaluations and recognition:
Using the scales below, would you describe the concession as being: Expensive Modern Sophisticated Spacious Warm 5 4 3 5 4 3 5 4 3 5 4 3 5 4 3 2 1 Inexpensive? 2 1 2 1 2 1 2 1 Classic? Simple? Cluttered? Cold?

Inviting 5 4 3 Do you recognize the concession? Yes No If yes, can you name the concession?

2 1 Inexpensive?

Data collection and analysis the nal facet theory components To assist in the operationalization of the mapping sentence and questions, photographs of two concessions are presented as part of the research instrument. The choice of which concessions to photograph has again been guided by previous research (Kerfoot et al., 2003), which demonstrated that Morgan and FCUK had strong retail brands that respondents were at times able to identify from the visual merchandising adopted. This was the case even when the stimulus photographs bore no obvious written indications of brand. The photographs in this study are incorporated into the questionnaires, and based on returns from qualied respondents; analysis at the level of the individual concession and between the two can be conducted. In the context of facet theory, such analysis is often conducted using SSA:
. . . [SSA] begins by calculating the association of coefcients between each pair of questionnaire items. It then represents the items as points in a n-dimensional space that the rank of the distances between the points is the inverse of the rank of the inter-item association coefcients. Thus, the closer the two points are in the space, the higher their positive association. The program also provides a measure of the goodness of t between the rank order of the association coefcients and the rank order of their spatial representation. . . .The plot is then partitioned by the investigator by identifying regions that share an element of a fact in common. Thus, the elements of a facet are empirically validated if a region on the plot exists for them (Donald, 1994, p. 247).

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This method of analysis constitutes the nal operation in the application of a facet theory approach. It ensures that that there is conceptual continuity throughout the process and ties in the method of analysis to the rest of the research. Concluding thoughts Facet theory may have benets in research areas that involve a wide number of possible variables and relationships between those variables as is the case in this context. It may also be of assistance to other areas where there is an attempt to draw on work from different topics of investigation and therefore increased issues of complexity to manage. Facet theory provides those seeking to explore the relationships between variables a mechanism through which to describe the possible relationships as well as then testing the existence of the structures outlined. In doing this, this method moves beyond the need to gamble on the measurement of variables that are then subjected to the vagaries of factor analysis where the researcher is often left struggling to nd a coherent name for the resulting factors. Facet theory also lends a structured approach that guides the researchers thinking from beginning to end. Given this strength, it is perhaps surprising that this approach has not been used with management, marketing and retailing research to a greater degree. It is also true that the creation of the mapping sentence imposes a particular discipline. The precise delineation of facets and the specication of the relationships to be examined brings clarity to the research that may otherwise remain clouded. The procedure also ensures the development of the questionnaire in a fashion that links it closely to the thrust of the enquiry. However, the usefulness of SSA is something that remains to be tested in this particular research context and can only be judged once the research is actually conducted.

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However, as this research is informed by prior investigation, this helps to provide an in-context perspective on the usefulness of the facet theory approach. This perspective begins to suggest that there are substantial theoretical and methodological benets to be gained from the application of facet theory. The outcomes, should the approach indeed be benecial, are likely to have managerial implications. The application of facet theory should also facilitate the integration of research on in-store physicality with the more general environmental psychology approaches. Given these benets facet theory may provide retail academics with an useful addition to their methodological tool kit.

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