The Role of Need for Distinctiveness and Acculturation in Young, Urban Indian Consumers? Purchase Intention for Western Brands at Western Retail Formats: An Application of Theory of Planned Behavior by Manveer Kaur Mann A dissertation submitted to the Graduate Faculty of Auburn University in partial fulfillment of the requirements for the Degree of Doctor of Philosophy Auburn, Alabama August 4, 2012 Keywords: Indian consumers, retail, acculturation, need for distinctiveness, Theory of Planned Behavior Copyright 2012 by Manveer K. Mann Approved by Wi-Suk Kwon, Co-Chair, Associate Professor Department of Consumer Affairs Sang-Eun Byun, Co-Chair, Associate Professor Department of Consumer Affairs Sandra Forsythe, Wrangler Professor Department of Consumer Affairs ii Abstract Facing stiff competition and saturation in the home markets, American and European firms are increasingly looking for opportunities in India, the second largest untapped retail market. Despite its great market potential, the unique cultural background and market structure in India make it critical for foreign firms to understand why young Indian consumers, an emerging segment, choose to buy (or not to buy) Western brands at Western retail formats. To this end, this study examines need for distinctiveness to capture Indian consumers? dual desire for affiliation and differentiation to assert status, and investigate its role in accelerating acculturation towards Western culture and forming their value perception towards Western brands and Western retail formats in India. Drawing from Theory of Planned Behavior, a conceptual model is proposed to examine the roles that young Indian consumers? value perceptions (beliefs) about Western brands and Western retail formats as well as their subjective norms and perceived behavioral control play in forming an intention to buy Western brands at Western retail formats. A mall-intercept survey with a sample of 407 young Indian consumers was conducted in four Indian cities to test the proposed model. This study contributes to theory development by examining acculturation occurring through direct and/or indirect contact facilitated by media, technology, education, and travel, and by further developing and testing need for distinctiveness in the context of status-seeking behavior and testing its validity in explaining consumer behavior in an Eastern market. Findings from this study provide insights into the psychographic characteristics of young Indian consumers that increase their purchase iii intentions toward Western brands at Western retail formats and generate knowledge that can inform strategic marketing planning of manufacturers and retailers targeting this emerging market. iv Acknowledgements I am grateful to my co-advisor Dr. Sang-Eun Byun for her exceptional direction and for setting a remarkable example of work ethic and teaching pedagogy. Her endless support and persistence to challenge me creatively and to promote my growth as a future educator has been the driving force behind my growth during doctoral studies. Above all, I thank her for being such a wonderful friend and for cheering me all the way through graduate school. I also thank Dr. Wi-Suk Kwon for her remarkable direction, leadership, and patience. I cannot thank her enough for always supporting me and for taking out the time to teach me so many nuances of conducting good research. I am extremely grateful and indebted to her for her instrumental role in my growth as a researcher. Dr. Kwon is a truly inspirational researcher and mentor, and it is my hope that I can develop the level of caliber that she personifies. I thank Dr. Sandra Forsythe for serving on my dissertation committee. Thank you, Dr. Baker Ayoun for serving as the reader. Special thanks to Dr. Carol Warfield for fostering such a wonderful environment in the Department of Consumer Affairs. Many thanks to Yi-Shuang Li, Soo In Shim, Rick Cottle, Jae Young Chang, and other fellow graduate students for their support and for being such wonderful friends. I thank my dear friends Harmeet and Payal for always being there for me and for so many special memories. I am thankful to my family for always supporting me and for providing me the platform to get here. Lastly, I thank the most special person in my life, my best friend and my husband, Jass. I could not have done this without you. I love you! v Table of Contents Abstract ......................................................................................................................................... ii Acknowledgements ...................................................................................................................... iv List of Tables ............................................................................................................................... ix List of Figures .............................................................................................................................. xi Chapter 1. Introduction ................................................................................................................. 1 Background ..................................................................................................................... 1 Purpose Statement ........................................................................................................... 6 Definition of Terms ......................................................................................................... 7 Chapter 2. Review of Literature and Hypotheses Development................................................... 8 Indian Retail Industry ..................................................................................................... 8 Indian Consumers ......................................................................................................... 10 Perceived Value ............................................................................................................ 12 Functional Value .................................................................................................... 14 Emotional Value .................................................................................................... 16 Social Value ........................................................................................................... 18 Acculturation ................................................................................................................. 21 Strategies of Acculturation ...................................................................................... 23 Acculturation and Perceived Value ......................................................................... 25 Need for Distinctiveness ................................................................................................. 26 vi Theory of Planned Behavior ......................................................................................... 30 Attitude towards the Behavior ................................................................................. 31 Subjective Norm .................................................................................................... 32 Perceived Behavioral Control ................................................................................. 34 Chapter 3. Phase 1: Pretest 1....................................................................................................... 37 Method ............................................................................................................................ 37 Instrument ............................................................................................................... 37 Sampling and Data Collection ................................................................................ 40 Data Analysis and Results ............................................................................................ 40 Brand Selection ....................................................................................................... 40 Western Retail Format Selection ............................................................................ 41 Chapter 4. Phase 2: Pretest 2....................................................................................................... 44 Method ............................................................................................................................ 45 Instrument ............................................................................................................... 45 Sampling and Data Collection ................................................................................ 54 Data Analysis and Results ............................................................................................ 54 Sample Description .................................................................................................. 55 Perceived Value ...................................................................................................... 55 Subjective Norm ..................................................................................................... 68 Perceived Behavioral Control .................................................................................. 69 Need for Distinctiveness ........................................................................................... 71 Acculturation............................................................................................................. 77 Chapter 5. Phase 3: Main Study .................................................................................................. 80 vii Method ........................................................................................................................... 80 Instrument ............................................................................................................... 80 Sampling and Data Collection ................................................................................ 85 Data Analysis and Results ............................................................................................ 86 Sample Demographics .............................................................................................. 86 Measurement Validity and Reliability Check ........................................................... 86 Hypotheses Testing ................................................................................................ 109 Further Analyses ..................................................................................................... 116 Chapter 6. Discussion and Conclusions .................................................................................... 124 Summary of Results ...................................................................................................... 124 Discussion ................................................................................................................... 125 Need for Distinctiveness ......................................................................................... 125 Acculturation........................................................................................................... 126 Need for Distinctiveness and Acculturation ........................................................... 127 Theory of Planned Behavior ................................................................................... 128 Implications ................................................................................................................. 129 Theoretical Implications ......................................................................................... 129 Managerial Implications ......................................................................................... 132 Limitations and Recommendations for Future Research .............................................. 133 References ............................................................................................................................... 136 Appendix A ............................................................................................................................. 148 Appendix B ............................................................................................................................. 150 Appendix C ............................................................................................................................. 152 viii Appendix D ............................................................................................................................. 164 Appendix E ............................................................................................................................. 172 Appendix F................................................................................................................................ 180 ix List of Tables Table 3.1. Measurements for familiarity with Western retail formats ........................................ 39 Table 3.2. Measurements for brand familiarity, origin perception, and Western retail format perceived to carry the brand .................................................................................... 39 Table 3.3. Phase 1 brand recall statistics. ................................................................................... 41 Table 3.4. Phase 1 brand familiarity and Western origin perception descriptive statistics ........ 41 Table 3.5. Phase 1 Western retail format recall and brand familiarity statistics (n=90)............. 43 Table 3.6. Phase 1 brand availability in Western retail formats descriptive statistics (n=90) .... 43 Table 4.1. Questionnaire versions used in Phase 2 (n = 360) ..................................................... 44 Table 4.2. Measurements for perceived value adapted from Sweeney and Soutar (2001) ......... 46 Table 4.3. Measurements for subjective norms adapted from Ajzen (2002) ............................. 48 Table 4.4. Measurements for perceived behavioral control adapted from Ajzen (2002). .......... 49 Table 4.5. Measurements for need for distinctiveness ................................................................ 51 Table 4.6. Measurement for acculturation adapted from Cleeveland and Laroche (2007) ........ 53 Table 4.7. Principal components analysis results: Perceived value of Western brands ............. 56 Table 4.8. Principal component analysis results: Perceived value of Western retail formats .... 57 Table 4.9. Principal component analysis results: Perceived value of Western brands-four factor solution .................................................................................................................... 59 Table 4.10. Principal component analysis results: Perceived value of Western retail formats- four factor solution .......................................................................................................... 60 Table 4.11. Factor pair correlations for perceived value ............................................................ 65 x Table 4.12. Chi-Square Difference tests for perceived value constructs .................................... 66 Table 4.13. Principal component analysis results: Need for distinctiveness .............................. 72 Table 4.14. Principal component analysis results: Need for distinctiveness -two-factor solution .................................................................................................................... 73 Table 4.15. Revised scale for Need for Distinctiveness ............................................................. 76 Table 4.16. Principal Component Analysis Results: Acculturation ........................................... 78 Table 4.17. Revised scale for Acculturation ............................................................................... 79 Table 5.1. Finalized questionnaire items in Phase 2 ................................................................... 81 Table 5.2. Sample Characteristic of sample (n=407) ................................................................. 87 Table 5.3. Factor pair correlations for perceived value .............................................................. 94 Table 5.4. Chi-Square Difference tests for perceived value construct ....................................... 95 Table 5.5. Principal component analysis results: Need for distinctiveness .............................. 101 Table 5.6. Principal component analysis results: Acculturation ............................................... 104 Table 5.7. Principal component analysis results: Acculturation - three component solution ... 105 Table 5.8. Factor pair correlations for acculturation ................................................................. 107 Table 5.9. Chi-Square Difference tests for Acculturation ........................................................ 108 Table 5.10. Hypotheses ............................................................................................................. 109 Table 5.11. Unstandardized Parameter Estimates for Hypotheses in Single-Group SEM model in Figure 4.13 ............................................................................................................. 112 Table 5.12. Unstandardized Parameter Estimates for Hypotheses in Single-Group SEM model in Figure 4.14 ............................................................................................................. 115 Table 5.13. Unstandardized Parameter Estimates for Hypotheses in Multiple-Group SEM model in Figure 4.15 ......................................................................................................... 119 Table 5.14. Unstandardized Parameter Estimates for Hypotheses in Multiple-Group SEM model in Figure 4.16 ......................................................................................................... 122 xi List of Figures Figure 2.1. Theory of Planned Behavior Azjen (1985) .............................................................. 31 Figure 2.2. Proposed model: Predictors of young urban Indian consumers? intention to buy a Western brand at a Western retail format ............................................................... 36 Figure 4.1. Confirmatory factor analysis model: Perceived value of Western brands .............. 62 Figure 4.2. Confirmatory factor analysis model: Perceived value of Western retail formats ... 63 Figure 4.3. Confirmatory factor analysis model: Subjective norms for Western brands .......... 69 Figure 4.4. Confirmatory factor analysis model: Subjective norms for Western retail formats 69 Figure 4.5. Confirmatory factor analysis model: Perceived behavioral control towards Western brands ....................................................................................................................... 71 Figure 4.6. Confirmatory factor analysis model: Perceived behavioral control towards Western retail formats ............................................................................................................ 71 Figure 4.7. Confirmatory factor analysis model: Need for distinctiveness ................................ 74 Figure 5.1. Confirmatory factor analysis model: Perceived value of Western brands .............. 89 Figure 5.2. Confirmatory factor analysis model: Perceived value of Western retail formats ... 90 Figure 5.3. Revised Confirmatory factor analysis model: Perceived value of Western brands 91 Figure 5.4. Revised Confirmatory factor analysis model: Perceived value of Western retail formats ..................................................................................................................... 92 Figure 5.5. Confirmatory factor analysis model: Subjective norms for Western brands .......... 97 Figure 5.6. Confirmatory factor analysis model: Subjective norms for Western retail formats 98 Figure 5.7. Confirmatory factor analysis model: Perceived behavioral control towards Western brands ....................................................................................................................... 99 xii Figure 5.8. Confirmatory factor analysis model: Perceived behavioral control towards Western retail formats ............................................................................................................ 99 Figure 5.9. Confirmatory factor analysis model: Need for distinctiveness .............................. 102 Figure 5.10. Confirmatory factor analysis model: Acculturation ............................................. 106 Figure 5.11. Revised Confirmatory factor analysis model: Acculturation ............................... 107 Figure 5.12. Single-Group SEM Model 1 with Standardized Regression Coefficients ........... 111 Figure 5.13. Single-Group SEM Model 2 with Standardized Regression Coefficients ........... 114 Figure 5.14. Multiple-Group SEM Model 3 with Standardized Regression Coefficients ........ 118 Figure 5.15. Multiple-Group SEM Model 4 with Standardized Regression Coefficients ........ 121 1 CHAPTER 1. INTRODUCTION Background Globalization has been the harbinger of receding trade barriers between nations. Countries that were traditionally closed to the world are opening, emerging, and asserting their competitiveness. These emerging nations, especially China and India, are oozing with opportunities due to the profitable market size and growth prospects (Kearney, 2010). In response, a growing number of foreign retailers are entering and learning to operate in these geographically and culturally distant markets. Although globalization has delivered convergence of technology, media, and income, consumer behavior in these markets cannot be conceded homogenous due to the significant differences in national culture (Mooij & Hofstede, 2002). At a macroscopic level, some convergence exists in consumer demands of quality and value, but the taste of consumers from different cultures still remains heterogeneous (Ger & Belk, 1996; Mooij & Hofstede, 2002). In order to succeed, foreign retailers entering into emerging countries have to learn to adapt to the tastes and preferences of the local consumers. Extensive research has been done to examine the attitudes and preferences of the consumer of the developed countries. However, very little academic attention has been paid to the consumer of the emerging countries such as India (Kumar, Lee, & Kim, 2009). Moreover, although several recent studies have examined consumer attitudes towards foreign brands in China, research about Indian consumers is scant with only a few exceptions (e.g., Batra & 2 Niehm, 2009; Kumar, Garg, & Rahman, 2010; Kumar et al., 2009). India is the second largest untapped retail market after China, and it has been ranked within the top five countries in terms of retail development (Kearney, 2010), warranting more research on consumers and the retail industry in this country. The Indian retail market was traditionally closed, and foreign brands and retailers were kept out of the market due to the government?s stringent investment regulations (Fernandes et al., 2000; Mann & Byun, 2011a). As a result, only a limited number of Western brands (brands originating from Western Countries such as the U.S., and examples include Levis and Nike) were available in the Indian market, and the market was dominated by small independent owner- operated stores, also referred to as mom and pop stores or unorganized retailers, mainly selling local brands (Mann & Byun, 2011b). However, in 2006, the Indian government introduced a relaxed version of foreign direct investment (FDI) policies, leading an increasing number of Western brands to enter and expand in India. As a result, Western retail formats, which refer to the retail formats that are common in Western countries such as department stores, shopping malls, and (single-brand or multiple-brand) specialty stores, are becoming more available in India (Ghosh, Tripathi, & Kumar, 2010). Therefore, Indian consumers are now being exposed to an increasing number of Western brands and Western retail formats. Furthermore, due to the booming economy and rising disposable incomes in India, young urban consumers are emerging as a potential market segment with a greater propensity of experimenting with Western brands and Western retail formats (Mann & Byun, 2011a). For the growth and profitably of Western retailers courting the Indian market, a deep understanding of Indian consumers is vital due to changing cultural values and consumer preferences, especially among young urban consumers (Bharadwaj, Swaroop, &Vittal, 2005). The previous literature 3 suggests the importance of perceived value in predicting satisfaction and patronage intentions among Indian consumers (Kumar, Garg, & Rahman, 2010). Therefore, to gauge young, urban Indian consumers? attitude towards purchasing Western brands at Western retail formats, it is important to understand their perceived value of Western brands and Western retail formats, which has been under-researched in the extant literature. When two cultures come in close contact, cultural distinctions start to blur (Faber, O?Guinn & McCarty, 1987), which leads to subsequent changes in the original cultural patterns of either or both groups. This phenomenon of cultural shifts is referred to as acculturation. There has been extensive research about the construct of acculturation which occurs through direct contact between two cultures. However, with globalization and advances in technology, acculturation is increasingly occurring through second-hand contact via media, education, travel, and so on. Increased interaction between cultures due to globalization has evoked consumer acculturation (Cleveland &Laroche, 2006), thereby calling for a need to examine acculturation occurring through second-hand contact. Greater exposure to Western lifestyles through media, education, and overseas travel has also initiated Indian consumers? acculturation process, in which they are assimilating new norms and values different from those of the traditional Indian culture. Although Indian consumers, particularly young urban consumers, are increasingly embracing Western consumerism (Srivastava, 2008), these consumers are not merely imitating Western consumption patterns. For example, even with a growing desire to consume, Indian consumers are still holding on to a puritanical desire to economize (Maxwell, 2001). They may increasingly purchase Western brands and shop at Western retail formats due to favorable perceptions of quality. However, given their prudent nature, they may not always consider high quality Western brands as a good value for money (Kinra, 2006; Maxwell, 2001). Therefore, 4 Western brands and retailers may need to tailor their offerings to suit the changing values and preferences of Indian consumers, instead of methodically transplanting their home-market practices (Bijapurkar, 2008; Manveer & Byun 2011a). Consumers in developing countries tend to purchase Western brands to emulate the affluent lifestyle of Western countries (Batra, Ramaswamy, Alden, Steenkamp, &Ramachander, 2000). As such, Indian consumers who have an increasing exposure to Western culture are likely to get acculturated to Western lifestyle and buy Western brands and shop at Western retail formats to emulate Western lifestyles. However, no empirical studies have examined Indian consumers? acculturation process, particularly through second-hand contact to Western culture, and its role in shaping their perceived value and consumption behavior related to Western brands and Western retail formats, a gap addressed by this study. In countries with an emerging economy, income disparities and status mobility are higher than they are in developed countries (Kumar et al., 2007). Thus, as compared to consumers in developed countries, Indian consumers, especially those with higher disposable incomes, may feel a greater need to assert their social status through the acquisition and use of materials that symbolize their status (Kumar et al., 2007). Western brands often serve as symbolic acquisitions that communicate status and prestige (Batra et al., 2000; Jin, Chansarkar, &Kondap, 2006; Kinra, 2006). Accordingly, Indian consumers tend to perceive Western brands favorably due to the attributes of status and prestige (Kinra, 2006). An individual?s need to assert status may promote social belonging through social conformity with an ideal group of a certain status. However, affiliation with one reference group (i.e., an ideal social [status] group) may simultaneously imply a separation from other reference groups (e.g., a lower or less ideal social [status] group, general population, or the mainstream). Therefore, need to assert status may manifest itself in a 5 dual desire for differentiation and social belonging, which can be referred to as need for distinctiveness. India, a collectivist culture, has been known to value conformity and affiliation with a reference group (Rahman & Bhattacharyya, 2003), which may imply separation from other reference groups. Therefore, in order to fulfill their need for distinctiveness (i.e., need to conform to and affiliate with an ideal social [status] reference group (Western culture) and differentiate from the general population), Indian consumers may engage in symbolic consumption behavior that allows them to achieve these dual goals. Therefore, need for distinctiveness is expected to be an important antecedent to the perceived value of Western brands and retail formats, particularly social value, thereby calling for an examination. Furthermore, Indian consumers who seek distinctiveness from the general population may be more likely to acculturate to Western culture due to its distinctiveness from Indian culture and prosperous image, which also warrants further research. Additionally, given that Indian culture has been known to value conformity (Rahman & Bhattacharyya, 2003), subjective norm, defined as an individual?s motivation to abide by important other?s expectations (Azjen, 1991), can also be a critical factor forming young Indian consumers? purchase intention towards Western brands at Western retail formats. Furthermore, growing but still limited availability of Western brands and Western retail formats and their perceived expensiveness (Kinra, 2006; Maxwell, 2001) may determine an Indian consumer?s perceived behavioral control, an individual?s perception of the ease with which a behavior of interest can be performed (Azjen, 1991), regarding purchasing Western brands at Western retail formats. Therefore, as described by Theory of Planned Behavior (TPB), subjective norm and perceived behavioral control were examined as antecedents of young Indian consumers? purchase intention towards Western brands at Western retail formats. 6 Purpose Statement This study proposes that the recent surge in exposure to Western lifestyles through media, education, and overseas travel among young, urban Indian consumers has triggered their acculturation to Western lifestyles, which leads to a shift in their consumption patterns through favorable value perceptions of Western brands and Western retail formats. The present study also proposes that young Indian consumers? need for distinctiveness may lead them to perceive high value of purchasing Western brands and shopping at Western retail stores to distinguish themselves from the general population (less ideal social group) as well as to affiliate themselves with the prosperous Western lifestyle (ideal social group). Additionally, due to the importance of group conformity and perceptions of higher price and limited availability of Western brands and Western retail formats in India, subjective norm and perceived behavioral control, as described by TPB, can predict young Indian consumers? purchase intentions towards Western brands at Western retail formats. Thus, the purpose of this study is three-fold: 1. To examine the influences of need for distinctiveness on perceived value of Western brands and Western retail formats and acculturation towards the Western culture among young, urban Indian consumers, 2. To examine the influence of acculturation towards the Western culture on perceived value of Western brands and Western retail formats among young, urban Indian consumers, and 7 3. To examine how perceived value, subjective norm, and perceived behavioral control explain purchase intentions towards Western brands at Western retail formats among young, urban Indian consumers. Definition of Terms Acculturation: Phenomenon involving cultural shifts in a cultural group of individuals due to continuous direct and/or indirect contact with another culture. Need for distinctiveness: Dual drive of affiliation with an ideal social (or status) reference group and differentiation from a less ideal social (or status) reference group. Perceived behavioral control: ?People?s perception of the ease or difficulty of performing the behavior of interest? (Azjen, 1991, p. 183). Perceived value: Total utility ?based on perceptions of what is received and what is given? (Zeithaml, 1988, p. 14). Subjective norm: Likelihood that important referents or reference groups approve or disapprove a given behavior and a person?s motivation to comply with their expectations (Azjen, 1991). Western brands: Brands that are perceived to originate from Western countries, such as U.S., U.K., Germany, Spain, and so on. Western retail formats: Organized retail formats or modern retail formats including department stores, hypermarkets, supermarkets, specialty stores, shopping malls, discount stores, cash and carry warehouse clubs, factory outlets, and convenience stores. 8 CHAPTER 2. REVIEW OF LITERATURE AND HYPOTHESES DEVELOPMENT The present chapter reviews the relevant literature for the major constructs addressed in the study, describes the theoretical background supporting the study, and proposes a model and hypotheses for this study. The chapter will first start with a review of literature on Indian retail industry and Indian consumers relevant to this study. Next, major theoretical constructs of this study, including perceived value, acculturation, and need for distinctiveness, will be discussed, followed by a discussion of TPB and its application in this study. Throughout the literature review, the hypotheses will be presented along with the literature supporting them. Indian Retail Industry India is a nation of shopkeepers (Halepete & Iyer, 2008). With approximately15 million outlets, it has the highest density of retail outlets in the world (Halepete & Iyer, 2008). The Indian retail industry consists of small, independent owner-operated stores (also referred to as mom-and-pop stores or unorganized retailers) and Western retail format stores (also referred to as modern retail format stores or organized retailers) (Manveer & Byun, 2011a). Retailers in the organized sectors in India are characterized by large size, differentiated product assortment, wider geographical spread, and greater revenues; whereas retailers in the unorganized sectors are characterized by small size, undifferentiated products, and smaller revenues (Sternquist & Gupta, 2007). There are around 12 million retail outlets in the unorganized sectors in India, and 9 approximately 95% of Indian retail sales are accounted for by unorganized retailers (Goswami & Mishra, 2008). However, the number of Western retail formats in India is rapidly growing, and revenues from the organized sectors are estimated to grow at a compound annual growth rate of 40% from $20 billion in 2007 to $107 billion by 2013 (Ghosh, Tripathi, & Kumar, 2010). The rapid growth in the organized retail sectors has been initiated by the emergence of a strong consumer market resulting from the recent social and economic changes in India. With an average gross domestic product (GDP) growth rate of 4.8% between 1997 and 2009, Indian economy is in a booming phase (UNICEF, 2010). India is expected to be the world?s third largest economy after the U.S. and China by 2050 (Dadush & Stancil, 2009). The Indian retail industry was ranked within the top five countries from 2005 to 2010 in the Global Retail Development Index (GRDI), when market size, growth prospects, and consumer affluence and readiness were considered (Kearney, 2010). Indian retail industry is estimated to grow at a rate of 13% per year, from $322 billion in 2006-2007 to $590 billion in 2011-2012 (Department of Commerce [DOC], 2009). The apparel retail industry is forecasted to grow at a rate of 7.8% per year, reaching a value of $39.4 billion by 2013, an increase of 76.7% since 2006 (Datamonitor, 2009). In addition to the growing economy, trade liberalization has brought a significant growth in the organized retail sectors in India (Mann & Byun, 2011a). In 2006, relaxations in FDI policies were introduced in the retail sectors, allowing foreign retailers to have up to 51% ownership in retail trade of single brand retailing and up to 100% ownership for wholesale trade of cash and carry retail (DOC, 2006). The trade liberalization has led to an inflow of foreign retailers into the Indian market which has further raised the competitiveness of the organized retail sectors (Mann & Byun, 2011b). Foreign and domestic retailers in the organized sectors are now competing on large size, broad assortment, and pleasant store environment (Ghosh et al., 10 2010). The department store and hypermarket store formats are dominated by domestic retailers, who specialize in fusion styles (mixing Western and Indian styles) and traditional merchandise. Foreign retailers, on the other hand, mainly operate in shopping malls or specialty stores and cater to young urban consumers by introducing innovativeness of Western styles (Mann& Byun, 2011b). Indian Consumers The purchase behavior of the Indian consumer is explained by several demographic factors including gender, income, age, and geographic location. First, consumption patterns for clothing in India significantly differ by gender. Fernandes et al. (2000) found that Indian consumers? readiness to buy ready-to-wear clothing, willingness to shop in a modern (Western) retail format, and willingness to pay for added value were highest for sportswear, followed by men?s wear, and were lowest for women?s wear. Indian men tend to wear Western style clothing in their everyday lives, thus men?s clothing sectors have experienced higher proliferation of brands and have been the strongest category in department stores (Batra & Niehm, 2009). Indian women, especially the mid-aged group (> age 40), tend to prefer traditional outfits such as sari or salwar-kameez (Batra & Niehm, 2009), limiting their demand for Western apparel. Approximately 75% of the Indian women?s apparel market caters mainly to ethnic wear (Batra & Niehm, 2009). However, the Western clothing market for women still holds potential due to increasing demand for Western styles from college students and women executives in urban areas (Mann & Byun, 2011a). Along with the number of working women rising, women?s changing social roles and increased income are further escalating the demand for Western clothing (Batra & Niehm, 2009). 11 Second, when considering income, Indian consumers can be categorized into four segments: rich, middle class, aspiring, and deprived (National Council of Applied Economic Research [NCAER], 2005). The aspiring with annual income from $2031.60 to $4514.66 and deprived (less than $2031.60 in annual income) segments constitute 33.9% and 51.55% of Indian households, respectively, thereby forming the base of the income pyramid (NCAER, 2005). The rich consumer segment with annual income greater than $22,573.30, on the other hand, only represents 1.7 % of Indian households, but it holds a great market potential for haute-couture apparel and luxury goods (Biswas, 2006). The middle class consumer segment representing 12.8% of Indian households is projected to increase tenfold by 2025, indicating that the middle class is the main driver of growth (Bureau of South and Central Asian Affairs [BSCAA], 2009). The disposable income of the middle class ranges between $4,514.66 and $22,573.30 per year and is projected to increase (BSCAA, 2009). In addition to growing income, the consumption patterns of the middle class segment are changing with increased exposure to the Western lifestyle through media and overseas travel for work, education, and leisure (Venkatesh, 1994). Studies have shown that Indian middle-class consumers are value-driven (Bhardwaj et al., 2005; Srivastava, 2008), and they are increasingly considering brand names and store attributes such as merchandise assortment, store ambience, and exclusivity in making their purchase decisions (Sinha & Banerjee, 2004). Third, age is a good indicator of Indian consumers? consumption patterns. More than 50% of the Indian population is less than 25 years old, making India the world?s youngest nation (BSCAA, 2009). The youthful population is experiencing an optimistic job market and a rise in purchasing power (Biswas, 2006). This consumer segment also has a greater tendency to visit Western retail stores. For example, according to a survey with Indian consumers by Ghosh, 12 Tripathi, and Kumar (2010), among the respondents who visited organized retail outlets, 40% were less than 24 years old, 27% were aged between 25 to 34 years, 18% were aged between 35 to 44 years, and 15% were 45 years old and above. Finally, even though a significant portion of the Indian population lives in rural areas, there is a considerable urban movement such that the urban population is projected to increase by 30% by 2012 (Biswas, 2006), creating significant differences in consumption patterns between rural and urban areas. For instance, consumers in big cities and metropolises, such as Delhi and Bombay, have greater exposure to Western lifestyles and exhibit greater inclination towards consumerism. This is further reflected in the differential growth of the retail sectors between urban and rural areas. Larger cities, especially, Delhi, Mumbai, Bangalore, Hyderabad, Chennai, and Kolkatta, have grown at a tremendous rate and are facing saturation due to the substantial retail growth (Indian Brand Equity Foundation [IBEF], 2006). Smaller cities, such as Pune, Ahmedabad, Chandigarh, Ludhiana, Kochi, Jaipur, and Lucknow, are also growing rapidly with thriving retail activities and increasing presence of Western brands and Western retail formats (IBEF, 2006). However, the retail potential of rural areas still remains largely untapped, even though more than 70% of Indian population resides in rural areas (IBEF, 2006). Therefore, considering that young, urban consumers have a greater exposure and propensity towards Western brands and Western retail formats, this consumer segment is the focus of this study. Perceived Value Consumer choices are driven by consumption value reflected in the total utility of a product/service (Sheth, Newman, & Gross, 1991; Sweeney & Soutar, 2001). The assessment of the total utility of a product is ?based on perceptions of what is received and what is given? 13 (Zeithaml, 1988, p.14). Perceived value can be explained by equity theory which suggests that parties involved in an exchange feel that they have been treated equitably if they are satisfied, considering the ratio of outcome and inputs as fair (Adams, 1965; Oliver & Desarbo, 1988; Yang & Peterson, 2004). Although the conceptualization of perceived value as ?give and receive? is a simplistic and effective way of defining value, the uni-dimensionality of this definition limits it from discerning the complexities of perceived value (Lin, Sher, & Shih, 2005). Value can be considered as a salient tradeoff between costs and benefits, and what constitutes these costs and benefits may vary across consumers and situations. For example, consumers may consider quality, low price, and/or convenience as received components, while considering money, time, and/or effort as given components (Zeithaml, 1988). In order to overcome this limitation, researchers have proposed multi-dimensionality of perceived value. According to the theory of consumption values proposed by Sheth et al. (1991), consumer choices are based on multiple values including functional value, social value, emotional value, epistemic value, and conditional value. Theory of consumption values suggests that social value is derived from association with one or more groups, while emotional value is related to the arousal of feelings and affective states. Functional value is related to the physical performance of a product, and epistemic value originates from arousal of curiosity and novelty. Conditional value refers to the perceived value of a product under a specific situation or set of circumstances. For example, perceived value of an aspirin may be higher when a consumer has a migraine. The theory also postulates that these dimensions of values are independent and additive; and at any given time, it is possible that all five values or only some are salient in consumer decision making. For instance, while all five values may influence a first-time home 14 buyer, only social and emotional values may be salient when choosing between two different brands of cigarettes (Sheth et al., 1991). Even though theory of consumption values provides a good foundation to examine multiple dimensions of perceived value, several researchers disagree with the assumption that all the value dimensions proposed by theory of consumption values are independent (Sweeney & Soutar, 2001). For example, it is often argued that emotional and functional values? also referred to as hedonic or affective and utilitarian or cognitive values, respectively ? may be interrelated. Following the assumption that value dimensions can be interrelated and applying some of the dimensions developed in theory of consumption values, Sweeney and Soutar (2001) proposed measures of four dimensions of perceived value: emotional value, social value, functional value (price/value for money), and functional value (performance/quality). Sweeney and Soutar (2001) created a 19-item measurement (PERVAL) which can be applied to consumer durable goods brands. They conducted focus group interviews to develop an initial pool of values that consumers associated with brands. The initial pool of values were evaluated with respect to the dimensions outlined by the theory of consumption values, and it was found that epistemic value was not reflected in any of the items. Conditional value was also eliminated because it is a situation-specific dimension while PERVAL is a general value measure. The dimensions (emotional, social, and functional) encompassing the construct of perceived value proposed Sweeney and Soutar (2001) are discussed below in greater detail. Functional value Functional (utilitarian) value can be conceptualized as customer return on investment (CROI) in terms of the economic utility of the product (i.e. perception of affordable quality) 15 (Mathwick, Malhotra, & Rigdon, 2001). Sweeney and Soutar (2001) also define functional value as ?the utility derived from the perceived quality and expected performance of the product? due to the reduction of its perceived short-term and longer-term costs? (p. 211). Therefore, price and quality are considered as the primary determinants of functional value. Price is a direct indicator of the amount of sacrifice needed to obtain a product (Dodds, Monroe, & Grewal, 1991; Zeithaml, 1988) and thus is considered as a key component of functional value. Consumers usually have a set of prices that fall in acceptable short term or long term costs such that if the price of a product is unacceptable, that product may be inferred to be of little or no net perceived value (Dodds et al., 1991). In addition to price, perceived quality of a product is an important determinant of the functional value of the product. Perceived quality can be defined as ?consumers? judgment of overall excellence or superiority of the product? (Zeithaml, 1988, p. 3). It is important to note that price may be used as an indicator of quality or performance of the product (Zeithaml, 1988). However, the inference of quality from price may depend on a number of factors including availability of other extrinsic cues to quality, price and quality variation within the product category, level of price awareness of consumers, and consumers? ability to detect quality variation in the group of products (Zeithaml, 1988). Several studies have examined the relation between perceived price, quality, and value (e.g. Chang & Wildt, 1994; Dodds, 1996; Dodds et al., 1991; Petrick, 2004). Chang and Wildt (1994) found that although price and perceived quality are related, the effect of price on perceived quality may be lessened in the presence of intrinsic product attribute cues, such as style, color, and fabric for apparel products (Kwan, Yeung, & Au, 2004). On the other hand, Dodds (1996) found that consumers use price as an indicator of quality regardless of whether brand information (an extrinsic cue) is available. Additionally, Dodds (1996) and Dodds et al. 16 (1991) found a significant positive relationship between quality and perceived value. Petrick (2004) also found that price is a significant indicator of perceptions of quality and value. These findings suggest that price and quality are important dimensions of perceived value, but there may be some correlation between them. Indian consumers, particularly the middle-class consumer, have traditionally shown price-oriented purchase behavior. However, with growing consumerism, Indian consumers are shifting towards a value-oriented behavior (Bhardwaj et al., 2005; Srivastava, 2008), such that value is derived not only from lower price but also from quality (Batra & Niehm, 2009). Western brands specifically have been considered to be of high quality by Indian consumers (Kinra, 2006; Maxwell, 2001). Additionally, a study by Kumar, Garg, and Rahman (2001) suggests that when considering retail formats, functional value is a significant predictor of Indian consumers? patronage intention. Therefore, it can be presumed that functional value can play a significant role in forming young Indian consumers? purchase intention towards Western brands at Western retail formats. Emotional value Emotional value refers to ?the utility derived from the feelings or affective states that a product generates? (Sweeney & Soutar, 2001, p. 211). Consumer research has traditionally focused on tangible benefits of products and services. However, recently, a growing amount of research has been conducted in relation to emotional or hedonic value, which suggests that consumers often acquire products for emotional or hedonic value in addition to task-related benefits (Holbrook & Hirschman, 1982). For example, consumers may consider utilitarian benefits of goods such as clothing (warmth, breathability) and automobiles (gas mileage) as well 17 as hedonic benefits (aesthetic design) when making purchase decisions. Holbrook and Hirschman (1982) suggested that hedonic value is a multisensory, fantasy-like, and emotive aspect of consumer behavior. It is derived from experiential consumption that seeks fun, pleasure, amusement, fantasy, arousal, and excitement (Dhar & Wertenbroch, 2000). According to Batra and Ahotla (1990) and Spangenberg, Voss, and Crowley (1997), although consumption is driven by hedonic and utilitarian benefits simultaneously, the salience of these benefits may vary across products and situations. For example, hedonic benefits may be salient in consumption of an experiential product such as a painting, whereas in the case of a functional product such as toothpaste, utilitarian value may take precedence. Further, when considering a product with both functional and experiential benefits such as an armchair, consumer may make more explicit trade-offs between the two benefits. Chitturi, Raghunathan, and Mahajan (2007) examined this trade-off process and found that when utilitarian or functional needs are met by a choice set, consumers place greater importance to hedonic value in evaluating the products, which is referred to as the hedonic dominance phenomenon. Chitturi et al. (2007) also suggest that superior hedonic value is an important factor when evaluating willingness to pay for a product. Okada (2005), however, makes a contradictory argument suggesting that the discretionary nature of consumption based on hedonic value makes it relatively difficult to justify spending on hedonic goods versus utilitarian goods. Furthermore, Okada (2005) suggests that the benefits of hedonic value are more difficult to quantify, and there may be a sense of guilt associated with hedonic goods. She also argues that people may be more likely to consume hedonic goods when the decision enables them to justify it, which is synonymous with Chitturi et al. (2007)?s findings that once the utilitarian benefits are satisfied, then consumers place greater importance on hedonic value, which may then lead to more positive emotions rather than guilt. 18 In another study, Chitturi, Raghunathan, and Mahajan (2008) found that hedonic benefits enhance consumer delight by evoking feelings of cheerfulness and delight. It is also established that hedonic-value based consumption emphasizes greater interest and involvement (Spangenberg et al., 1997). Okada (2005) suggests that consumers are more willing to expend effort and time for hedonic goods, which corroborates that there may be greater involvement and interest associated with hedonic consumption. Hedonic or emotional value is not only applicable to tangible products, but also to shopping-related activities such as browsing for ?the fun of it? (Bloch &Richins, 1983). Emotional value of shopping may be related to a range of feelings or affective states including fun, playfulness, arousal, heightened involvement, fantasy, and escapism (Holbrook & Hirschman, 1982). These emotional states are often aroused during the shopping experience, and in some cases the act of purchase may serve as a climax of the experience (Babin, Dardin,& Griffin, 1994). In the context of Indian consumers, Kumar, Lee, and Kim (2008) found that positive attitude towards emotional value of U.S. brands is a significant predictor of a purchase intention. Similarly, Kumar, Garg, and Rahman (2010) found that hedonic value of a retail store is a significant predictor of Indian consumers? patronage intentions. Therefore, perceived emotional value of Western brands and Western retail formats can be an important predictor of young Indian consumers? purchase intentions towards Western brands at Western retail formats. Social value Social value can be defined as ?the utility derived from the product?s ability to enhance social self-concept? (Sweeney & Soutar, 2001, p. 211). In addition to the emotional value of 19 shopping or a purchase, product enthusiasts often acquire products to enhance their self-concept (Babin et al., 1994). Self-concept has been theorized to interact with product-user image to generate a subjective experience referred to as self-image/product-image congruity or self- congruity (Sirgy et al., 1997). Self-congruity experience has been further explained by self- congruity theory (Sirgy, 1985), which proposes that congruence resulting from a psychological comparison of the product-user image and the consumer's self-concept (e.g., actual self-image, ideal self-image, social self-image) can affect consumer behavior through self-concept motives such as the needs for self-consistency and self-esteem. A higher level of self-congruity is experienced when a consumer perceives a greater match between product-user image and self- image (Sirgy et al., 1997). High self-congruity has been shown to generate more positive attitude towards the product or brand (Sirgy, Grewal, & Mangleburg, 2000). Although psychological comparison of product image can be made with actual self-image (self-image that one holds), ideal self-image (self-image that one would like to hold), or social self-image (self-image that one believes is seen by others), the social value of product is related to social self-congruity (Sirgy, 1985). Social self-congruity is referred to as the degree of match between a consumer?s social self-image and product image given a preferred product ownership (Sirgy et al., 2000). An extension of social self-congruity is ideal social self-congruity, which refers to the degree of match between a shopper?s ideal social self-image (self-image that one would like others to see) and product image (Sirgy, 1985). Ideal social self-image may affect consumer behavior when there is a need to gain approval from others. Social value of a product may be important in such a context, making consumers assess a product in terms of the likelihood of gaining approval from others (Day & Crask, 2000). In order to gain positive 20 reactions from others, social value may be a driver of purchase in highly visible products such as clothing and cars (Sheth et al., 1991). In addition to the need of approval from others for social conformity, status-seeking behavior may be an important consideration when evaluating social value of a product (Chaudhuri & Majumdar, 2006). Status-seeking behavior occurs when consumers purchase a product in order to advertise wealth and achieve greater social stares (Bagwell & Bernheim, 1996) or to be distinctive from the mainstream. The seminal work of Veblen (1922) on status- seeking behavior presents conspicuousness as intentional conduct in which status considerations prevail. Status-seeking behavior has also been referred to as prestige-seeking behavior, such that consumers exhibit conspicuous or status consumption to signal status and wealth (Cass & McEwen, 2004; Sheth et al., 1991; Vigneron & Johnson, 1999). Although conspicuous consumption and status consumption are often used interchangeably in the literature, Cass and McEwen (2004) differentiate the two in that status consumption refers to ?consumers? desires to gain prestige from the acquisition of status-laden products and brands? (p.27), whereas conspicuous consumption ?focuses on the visual display or overt usage of products in the presence of others? (p. 27). Reflecting upon the definition of status and conspicuous consumption, it can be inferred that consumers may seek social value in products or brands when exhibiting both consumption patterns. Cass and McEwen (2004) also found that susceptibility to normative (reference group) influence is related to both status and conspicuous consumption. Since a need to identify one?s image in the opinion of significant others may both lead to status and conspicuous consumption, greater interpersonal or normative influence may increase the role of social value in purchase decisions. 21 Considering that India is a collectivist culture, Indians are susceptible to normative influence or social conformity (Rahman & Bhattacharyya, 2003), thus exhibiting a need to assert status. Furthermore, Indian consumers consider Western brands as symbolic acquisitions and tools to communicate status and prestige (Batra et al., 2000; Jin, Chansarkar, & Kondap, 2006; Kinra, 2006). Accordingly, it can be expected that Indian consumers may perceive Western brands to be of greater social value due to the attributes of status and prestige (Kinra, 2006). In similar vein, due to the perceived expensiveness of Western retail formats, they can be considered to be more exclusive and thereby of greater social value by Indian consumers. Acculturation Human behavior is shaped in a cultural context such that there is generally a correspondence between individuals? act and cultural expectations (Berry, 1997). Consumer behavior is also subject to the pressures of cultural norms and expectations for their own culture. However, when two cultures come in close contact, acculturation is likely to occur (Berry, 1997). As a result, differences in cultural expectations may become blurry, and differences in perceptions and relative importance of product attributes may also become more subtle between the two cultures. Acculturation is originally defined as a phenomenon where ?groups of individuals having different cultures come into continuous first-hand contact with subsequent changes in the original cultural patterns of either or both groups? (Redfield, Linton, & Herskovits, 1936, p. 149). Consumer acculturation is a subset of acculturation but is specific to the consumption process (Ogden, Ogden, & Schau, 2004). Consumer acculturation facilitates learning behavior, attitudes, and values of a culture that are different from culture of origin (Lee, 1988; Ogden et al., 2004). 22 The definition of acculturation above limits the medium of acculturation to first-hand or direct contact only, which was a valid assumption at the time the definition was provided. Lee (1993) argued that although activities, such as trade and education, have impact on the process and outcome of acculturation, continuous first-hand contact through immigration is the most extreme case of acculturation. Due to the greater degree of acculturation facilitated by immigration, many previous studies have focused on the examination of acculturation of immigrants with host culture. For example, Khairullah and Khairullah (1999) and Rajagopalan and Heitmeyer (2005) examined acculturation among Indians immigrated to the U.S., and Gentry, Jun, and Tansuhaj (1995) examined acculturation among Chinese immigrated to Thailand. However, globalization, advancements in technology and media have made second- hand or indirect contact almost as real as first-hand contact. In the same vein, O?Guinn, Lee, and Faber (1986) suggested the need of incorporating mass-mediated socialization as an indirect path of acculturation. They pointed out that first-hand or direct contact may not always be needed for acculturation, but considerable degree of socialization may occur through mass media. Lee (1993) also found that acculturating individuals hold more positive attitude towards advertising and consider television as a trustworthy source for information and advice, such that they are inspired to live the kind of lifestyle portrayed by television. Accordingly, individuals who do not have first-hand contact with a foreign culture may be susceptible to messages from mass media and to acculturate to foreign cultures that are perceived as desirable. Therefore, by incorporating the second-hand contact as a medium of acculturation, this study redefines acculturation as a phenomenon involving cultural shifts in a cultural group of individuals due to continuous direct and/or indirect contact with another culture. 23 Strategies of Acculturation A common assumption related to acculturation is that acculturation occurs via a progressive learning model, also referred to as cultural assimilation. The norms and values held by the acculturating group members are somewhere between their own culture and that of the other society; and the greater the acculturation of an individual, the greater will be the progression towards the attitudes and values of the other society (Faber, O?Guinn, & McCarty, 1987). The progressive learning model, however, may not explain acculturation process in all contexts as cultural groups may adopt acculturation strategies other than assimilation. Berry (1997) outlines four strategies of acculturation based on differences on two dimensions: (1) cultural maintenance and (2) contact and participation. Cultural maintenance refers to the extent to which a cultural group considers identification with their original culture important (Berry, 1997), whereas contact and participation refers to the extent of involvement with other cultural groups or to remain primarily among each other (Berry, 1997). Four acculturation strategies -- assimilation, separation, integration, and marginalization -- can emerge based on differences in these two dimensions (Berry, 1997). In the case of assimilation, individuals do not wish to maintain their cultural identity and seek continuous interaction with other cultures. Separation, on the contrary, is exhibited when individuals place value in maintaining their own culture and avoid an interaction with other cultures. Integration falls somewhere between assimilation and separation such that an interest in both original and foreign cultures is accompanied by a continuous interaction with other cultural groups. Marginalization, the fourth strategy, entails little possibility or interest in cultural maintenance or in having relations with others. 24 Increased interaction between cultures due to globalization has evoked greater consumer acculturation with interplay of homogenization and heterogenization (Cleveland & Laroche, 2006). Global transport, communications, and marketing and advertising are dissolving boundaries across national cultures to lead to acculturation process that homogenizes consumer cultures (Ger, 1999). However, consumer cultures may still be heterogeneous because ?historical and current local conditions, interacting with global forces, shape the specific consumption patterns and meanings in each locality? (Ger, 1999, p. 67). Lee (1993) also notes that when different cultures come in contact, every culture has capacity to incorporate some aspects of other cultures, but the process of incorporation is affected by several factors including value of one's own culture. Therefore, acculturation is a gradual process, and there is a varying degree of pull of both original and foreign cultures that affect individuals (Cleveland & Laroche, 2006). In assimilation situations, there may be a direct adoption, without any modification, of the alternative or foreign behavior (e.g., elite consumers in developing countries may exhibit similar consumption behavior as that exhibited in developed countries). In the case of integration situations, resulting behavior may be distinctly different from both groups such that alternative behavior may be mixed with local elements (e.g., mix of Western wear with ethnic inspiration in clothing) (Cleveland & Laroche, 2006). In the case of assimilation and integration strategies of acculturation, individuals may show greater reliance on material symbols to create an "in-group" feeling (Gentry, Jun, & Tansuhaj, 1995). Additionally, assimilation and integration strategies signify some cultural shift in the original (acculturating) consumer group. However, rejection also can exist where consumers reject alternative or foreign behavior. In this case, there will not be any shift in the cultural focus of the original consumer group. 25 Acculturation and Perceived Value While Indian culture emphasizes collectivism and group conformity (Rahman & Bhattacharyya, 2003), greater exposure to Western culture through media and overseas travels facilitates Indian consumers? acculturation to Western culture. Many Indian consumers are employing the integration strategy of acculturation as consumption behavior of Indian consumer is adapting towards a hybrid mix of traditional shopping values and consumerism of the West (Bijapurkar, 2008). For example, the middle-class consumer is shifting from a traditional price- oriented purchase behavior to a value-oriented behavior (Bhardwaj et al., 2005; Srivastava, 2008), increasingly seeking product design, quality (Batra & Niehm, 2009), and brand names (Sinha & Banerjee, 2004). Another study found that Indian consumers? attitude towards Western brands is positively influenced by their need for uniqueness which inclines towards more individualistic behavior (Kumar, Lee, & Kim, 2008). Acculturation and adoption of material symbols of a desirable foreign culture may also be a consequence of individuals? need to be distinct from the mainstream or original culture by adopting symbols of foreign culture. Therefore, consumption behavior in India is no longer explained by collectivist cultural values only, but it has acculturated to integrate an individualistic flavor to it. Furthermore, Indian consumers, particularly the young urban consumers, are increasingly embracing Western consumerism and are placing a greater emphasis on ?feeling and looking good? (Biswas, 2006; Srivastava, 2008). Mass media may portray a desirable way of life in Western culture with a focus on functional and symbolic value of Western consumer products (Lee, 1993). Accordingly, as Indian consumers acculturate to Western culture through increased mass media exposure, they may symbolically acculturate by relying on the social image associated with products of a Western origin. This symbolic acculturation process is expected to lead young Indian consumers 26 to perceive high social and symbolic value of products and retail formats of a Western origin. Therefore, the following hypothesis is plausible: H1: Among young, urban Indian consumers, the greater the acculturation towards Western culture, the greater the perceived value of (a) a Western brand and (b) a Western retail format. Need for Distinctiveness Indian consumers? acculturation to Western culture may be linked to status-seeking behavior. Simmel (1904) highlights two polar yet agreeing dimensions of human nature: social belonging and differentiation. Social belonging or generalization assists in fulfilling social acceptance and grants ease to human nature, while differentiation or specialization allows freedom for movement (Simmel, 1904). Furthermore, optimal distinctiveness theory (ODT) also suggests that social identity is driven by two needs - the need for group inclusion, also referred to as need for assimilation, and need for differentiation from others (Brewer, 1991). However, ODT refers to these two needs in the context one specific in-group, such that when a person feels very different from the group he/she seeks to reassert his or security and vice-versa (Brewer, 1991; Pickett & Brewer, 2001). An individual?s status-seeking behavior may promote social belonging through social conformity and interpersonal similarity with an ideal group of a certain status, while it may simultaneously promote differentiation by alienating him- or herself from other groups that are of a lower status or non-ideal groups. Brewer, Manzi, and Shaw (1993) further suggest that an individual?s self-esteem increases as the status of in-group is greater than the out- groups. Therefore, an individual?s status-seeking behavior may be a manifestation of his or her concurrent desire for differentiation and social belonging. Specifically, in the context of this 27 study, the researcher defines need for distinctiveness as an individual?s dual drive of affiliation to an ideal social (or status) group and differentiation from a less ideal social (or status) group. Need for distinctiveness can be used as a framework to examine both bandwagon and snob effects. A bandwagon effect occurs when ?the demand for the good increases because others are buying the same good? (Corneo & Jeanne, 1996, p. 56). A snob effect, on the contrary, refers to a decrease in market demand because many others are buying the same good (Corneo & Jeanne, 1996). In the context of status-seeking behavior, a bandwagon effect may arise due to a drive to consume products that are affiliated with a higher status or an ideal social group. At the same time, a snob effect may prevail as people, in the flight to achieve status, withdraw from consumption of prevalent products or products associated with less ideal social classes. In this case, people seek distinctiveness to assert status and separate themselves from lower classes or less ideal social groups. As such, although in the modern India, particularly in urban areas, the Caste System ? a social stratification system ? is not practiced, the historical practice of the Cast System is likely to drive Indian consumers to seek distinctiveness to assert status. Furthermore, need for distinctiveness can also be used to explain the desirability associated with scarce products and shopping at new or innovative stores. Uniqueness theory ties the desirability of scarce products with the need to be unique (Lynn & Harris, 1997; Snyder, 1992). However, desirability of scarce products, especially luxury products or product categories that signal status, such as clothing and automobiles, can arise due to the need for distinctiveness rather than need for uniqueness. A study by Han, Nunes, and Dr?ze (2010) lends support to this argument as they found that consumption of luxury products is used to signal status and corresponds with the consumers? desire to associate or dissociate with members of their own and other groups. For example, due to the government?s stipulations in foreign investment in 28 retailing, the availability of Western brands was limited in the Indian retail market until recently (Mann & Byun, 2011a), which in turn creating scarcity of popular Western brands. As a result, Indian consumers may desire Western brands not only to appear unique but to distinguish themselves or dissociate themselves from the general public and to affiliate or associate themselves with prosperous Western lifestyles, thereby considering Western culture as an ideal reference group. In the similar vein, Snyder (1992) argues that desiring rare possessions as a marker of social class may not be the primary factor contributing to desirability of scare products, but it is the sense of specialness imparted by scare products that increase their desirability. Although this assumption may have greater validity in individualistic societies (e.g., the U.S.), in collectivist societies such as India and China, a sense of specialness conveyed by scare products may originate from affiliation of scarce products with a certain status or lifestyle. Bearden, Netemeyer, and Teel (1989) also lend support to this argument by noting that one of the important determinants of an individual?s behavior is others? influence (also referred to as interpersonal influence or social influence). Even though need for uniqueness may explain adoption of innovative or unique products, the power of interpersonal influence cannot be ignored when examining product adoption of scarce products, which may or may not be innovative or unique. Particularly in Indian context, signaling status and interpersonal influence are important factor that affect product adoption decisions due to the importance of group affiliation and conformity (Rahman & Bhattacharyya, 2003). Therefore, the following hypothesis is proposed: H2: Among young, urban Indian consumers, the greater the need for distinctiveness, the greater the perceived value of (a) a Western brand and (b) a Western retail format. 29 Bearden et al. (1989) suggest that people may adopt scarce products due to informational or normative social influence. Informational social influence refers to ?an influence to accept information obtained from another as evidence about reality,? whereas normative social influence means ?an influence to conform with the positive expectations of another? (Deutsch & Gerard, 1955, p. 629). While normative social influence tends to be more salient among individuals who are part of a group due to a greater group influence on individual judgment (Deutsch & Gerard, 1955), informational social influence may be more common among individuals who are not part of a group but aspire to be (Deutsch & Gerard, 1955). Individuals may maybe rely on informational social influence to seek information or make inferences from behavior of the individuals in the aspirational group (Bearden et al., 1989). For example, in order to be distinctive from the general population, consumers in developing countries may aspire to emulate prosperous Western lifestyles, and they may show a propensity to acculturate to Western culture. In this case, due to lack of direct contact with the West, consumers may not be certain about the reality of Western culture (i.e., ideal reference group), and thus they may use the image of Western culture obtained from various means such as travel, education, and media (i.e., informational social influence) to form inferences about Western lifestyles (i.e., the reality of the ideal reference group). Therefore, to enhance the in-group feeling with the West, consumers may use informational social influence to adopt consumption patterns of the West. Young, urban Indian consumers are increasingly embracing Western ideals of consumption (Biswas, 2006). Considering that emerging countries typically have a lower economic status and standard of living, it can be expected that consumers may buy Western brands and shop at Western retail formats to associate themselves with the success and prosperity of the West (Batra et al., 2000). Therefore, greater acculturation towards Western culture can be 30 a consequence of need to affiliate with the West and to be different from the general population in one?s own country. In other words, Indian consumers? need for distinctiveness may lead to their acculturation towards the Western culture. Therefore, the following hypothesis is plausible: H3: Among young, urban Indian consumers, the greater the need for distinctiveness, the greater the acculturation towards Western culture. Theory of Planned Behavior The present study draws from Theory of Planned Behavior (TPB) to examine the role of perceived value in shaping young Indian consumers? intention to buy Western brands at Western retail formats. TPB, an extension of Theory of Reason Action, proposes that human action is guided by three types of considerations (Azjen, 1985, 1991): ?beliefs about the likely outcomes of the behavior and the evaluations of these outcomes (behavioral beliefs), beliefs about the normative expectations of others and motivation to comply with these expectations (normative beliefs), and beliefs about the presence of factors that may facilitate or impede performance of the behavior and the perceived power of these factors (control beliefs)? (Ajzen, 2002, p. 1). TPB distinguishes these three beliefs and suggests that they contribute differently towards the formation of behavioral intention such that behavioral beliefs produce a favorable or unfavorable attitude towards the behavior, normative beliefs lead to perceived social pressure or subjective norm towards the behavior, and control beliefs lead to perceived behavioral control (Ajzen, 2002). TPB further contends that a more favorable attitude, a greater subjective norm, and a greater perceived control lead to a stronger intention to perform the behavior (Ajzen, 2002, see Figure 2.1). Additionally, TPB contends that perceived behavioral control (represented by the 31 dotted line in the Figure 2.1) together with intention can be used to directly predict behavior (Azjen, 1991) Attitude towards the Behavior TPB posits that favorable or unfavorable attitude toward a behavior is predictive of the behavioral intention. According to TPB, attitude towards a behavior is formed from beliefs regarding that behavior. Ajzen (1991) further notes that when considering ?attitudes toward a behavior, each belief links the behavior to a certain outcome, or to some other attribute, such as the cost incurred by performing the behavior? (p. 191). As such, the conceptualization of behavioral beliefs in TPB, beliefs about the likely consequences or other attributes of the behavior, is not very different from that of perceived value of an object or behavior, which refers to the assessment of the total utility of an object or behavior (Zeithaml, 1988). Therefore, in the Figure 2.1. Theory of Planned Behavior (Azjen, 1985) Perceived Behavioral Control Attitude Subjective Norm Behavior Intention 32 present study, Indian consumers? behavioral beliefs constituting their attitude about Western brands and Western retail formats are conceptualized as perceived value of a Western brand and a Western retail format because ?value? emerges from beliefs regarding the overall utility of the outcome of the behavior of using or purchasing from the brands or the stores. According to TPB, Indian consumers? perceived values of Western brands and Western retail formats are predicted to have direct influences on their intention to purchase from them. Thus, the following hypothesis is proposed: H4: Among young, urban Indian consumers, the greater (a) the perceived value of a Western brand and (b) the perceived value of a Western retail format, the greater the intention to buy the Western brand at the Western retail format. Subjective Norm Subjective norm is concerned with the likelihood that important referents or reference groups approve or disapprove a given behavior and a person?s motivation to comply with their expectations (Ajzen, 1985). Ajzen (2002) notes that there are two components of subjective norm: an injunctive component (i.e., if individuals believe that their social network wants them to perform the behavior) and a descriptive component (i.e., whether one?s social network performs a behavior). Additionally, previous studies have identified several types of reference group influences including informational, utilitarian, and value-expressive influences (Bearden & Etzel, 1982). An informational influence is exerted when an individual follows the reference group?s norm from the desire to make informed decisions, whereas utilitarian influence is based on an individual?s motivations to achieve rewards or avoid punishments from the reference group (Bearden & Etzel, 1982). Value-expressive influence is concerned with an individual?s 33 need to assert status or psychological association with the reference group (Bearden & Etzel, 1982). In addition to the three types of reference group influences, two types of reference groups are suggested in the literature: normative referents or socially proximal reference groups (e.g., parents, teachers, and peers) and comparative referents or socially distant reference groups (e.g., sports and entertainment celebrities) (Childers & Rao, 1992). Normative referents are the source of norms, attitude, and values through direct interaction; comparative referents have no or little direct interaction, but they provide ideals of achievement that individuals aspire for through their public behavior (Childers & Rao, 1992). Different types of referent groups may have varying degrees of influence on consumption process. However, TPB suggests that subjective norm is measured by normative influence of socially proximal important others. Consistent with TPB, this study applies the role of normative referents in conceptualizing the subjective norm relevant to Indian consumers? intention to buy a Western brand at a Western retail format. Subjective norm influences individuals? product or brand decisions when the ownership of the product is conspicuous (Bearden & Etzel, 1982). Bearden and Etzel (1982) suggest that normative influence may be a function of two forms of conspicuousness: exclusivity and public visibility or identification by others. Exclusivity is important because if virtually everyone owns a product, it is not conspicuous. Furthermore, for normative influence to affect consumers? brand decisions, the item must also be "seen or identified by others" (Bearden & Etzel, 1982, p.184). Therefore, consumers who consider a brand as a premium source of fulfillment of need for distinctiveness and status benefits (i.e., self-image and reference group approval) may be more sensitive to what their reference groups think of them (Batra et al., 2000). Additionally, reference groups may also serve as standards for self-appraisal or sources of personal norms (Batra et al., 34 2000). Therefore, brand choice may be subject to reference group influence due to symbolic nature of the product and reference group structure and decision processes. Considering that Indians value group affiliation and conformity (Rahman & Bhattacharyya, 2003), it can be expected that more positive subjective norm towards Western brands and Western retail formats can lead to more positive intentions towards them. Thus, the following hypothesis is proposed: H5: Among young, urban Indian consumers, the more positive (a) the subjective norm towards a Western brand and (b) the subject norm towards a Western retail format, the greater the intention to buy the Western brand at the Western retail format. Perceived Behavioral Control TPB includes perceived behavioral control to extend Theory of Reasoned Action, due to the limitation of the latter to account for behaviors over which individuals have incomplete volitional control (Ajzen, 1991). Azjen (1991) defines perceived behavioral control as ?people?s perception of the ease or difficulty of performing the behavior of interest? (p. 183). Between two individuals with the equivalent levels of attitude towards the behavior and subjective norms, one with more confidence in his or her abilities is more likely to perform the behavior than the one who has doubts (Ajzen, 1991). Perceived behavioral control is conceptually similar to perceived self-efficacy which is defined as ?judgments of how well one can execute courses of action required to deal with prospective situations? (Bandura, 1982, p. 122). Perceived self-efficacy affects people?s choice of activities and effort expended and persistence to overcome obstacles in order to succeed in those activities (Bandura & Adams, 1977). Similarly, the conceptualization of perceived behavioral control in TPB indicates that people?s behavior is strongly influenced by their confidence in their ability to perform it (Ajzen, 1991). In the context of Indian consumers, 35 due to the general perceptions of higher price (Kinra, 2006; Maxwell, 2001) and limited availability of Western brands and Western retail formats in India, perceived behavioral control can be a predictor of an intention to buy a Western brand at a Western retail format. Therefore, the following hypothesis is proposed: H6: Among young, urban Indian consumers, the greater (a) the perceived behavioral control over purchasing a Western brand and (b) the perceived behavioral control over shopping at Western retail format, the greater the intention to buy the Western brand at the Western retail format. Based on the theoretical and conceptual discussion in the literature review, a conceptual model of this study is proposed (see Figure 2.2), which posits that Indian consumers? need for distinctiveness leads to acculturation to Western culture, which in turn predicts perceived value of a Western brand and a Western retail format. In addition, perceived value, subjective norm, and perceived behavioral control (as described by TPB) related to the Western brand and the Western retail format further predict young Indian consumers? purchase intention towards the Western brand at the Western retail format. These hypotheses were tested in this study using data collected through a survey method. Prior to the main survey, two pretests were conducted to select the brand and retail format stimuli to provide contexts for the survey and to validate the survey instruments. Next three chapters describe the methods and results from the two pretests and the main survey. 36 Figure 2.2. Proposed model: Predictors of young, urban Indian consumers? intention to buy a Western brand at a Western retail format H6b H5b H6a .H5a H4b H4a H1a H1b H2b H2a H3 Perceived behavioral control (brand) Subjective norm (brand) Need for Distinctiveness Acculturation Subjective norm (retail format) Perceived behavioral control (retail format) Perceived value (brand) Perceived value (retail format) Intention to buy Western brand at Western retail format Note. All paths were hypothesized to be positive 37 CHAPTER 3. PHASE 1: PRETEST 1 This chapter describes the method and results of Phase 1 of this study which constituted the pretest to choose four Western brands in the product category of apparel and footwear and two Western retail formats to be used in Phase 2 and Phase 3 of this study. Apparel and footwear product categories were chosen for this study because they have the highest penetration in the organized (or westernized) retail sectors in India (CII & Kearney, 2006). The specific objectives of this phase were two-fold: 1) to identify four Western brands that are well known among the target population (young, urban Indian consumers), are known to be of a Western origin to them, and represent a diverse mix of brands with varying brand positioning; and 2) to identify two Western retail formats that the target population is highly familiar with and that they believe carry the identified Western brands. Method Instrument Phase 1 employed a paper-based survey with a student sample to collect data. A self- administered questionnaire (see Appendix C) was created including three sections. The first section of the questionnaire was designed to identify Western brands and Western retail formats recalled by participants. Participants were asked in an open-ended manner to list apparel brands that they have seen or heard of. The open-ended question did not specify Western or domestic 38 brands so that participants could list both Western and domestic brands. The open ended question only specified apparel brands and did not mention footwear brands. However, because many popular Western brands in India carried both apparel and footwear (e.g., Nike, Adidas, and Reebok), and thus it was expected that brands carrying footwear products would come up in responses. Participants were asked to list types of stores that they know carry the brands they listed in the brand recall question. In the second section of the questionnaire, participants were asked four questions addressing their familiarity with four Western retail formats: specialty stores, department stores, shopping malls, and hypermarkets. These Western retail formats were chosen because they are the most common Western retail formats in India (Batra & Niehm, 2009). To increase participants? understanding of the retail format terminology, a description of each of the retail formats was included in the questions. The four retail format familiarity questions (see Table 3.1.) were answered on a 7-point Likert scale (1 = Very unfamiliar, 7 = Very familiar). Following the Western retail format familiarity questions, a list of selected 20 Western brands and four Indian brands, which either carried apparel or apparel and footwear, available in India were presented along with two fictitious brands. Each brand accompanied five questions assessing participants? (1) brand familiarity, (2) perceived brand origin, and (3) perceived likelihood that selected three Western retail formats carried the brand (see Table 3.2). The Western brands included in this list were chosen such that the presence of these brands in the Indian market was featured in several sources including news articles (e.g. The Economic Times, Business Week etc.), trade publications (e.g., CII- A.T. Kearney Report), and industry websites (e.g. indiaretailing.com). 39 Table 3.1. Measurements for familiarity with Western retail formats Items Response category wording How familiar are you with Specialty Store? very unfamiliar/very familiar How familiar are you with Department Store? very unfamiliar/very familiar How familiar are you with Shopping Mall? very unfamiliar/very familiar How familiar are you with Hypermarket? very unfamiliar/very familiar Table 3.2. Measurements for brand familiarity, origin perception, and Western retail format perceived to carry the brand Items a Response category wording How familiar are you with _____ very unfamiliar/very familiar ________ is of Western (American/European) origin. very unlikely/very likely ________ is available in a specialty store. very unlikely/very likely ________ is available in a department store. very unlikely/very likely ________ is available in a shopping mall. very unlikely/very likely ________ is available in a hypermarket. very unlikely/very likely a The ?_____? in each item was replaced by a brand name from the list of 26 brands. Moreover, the chosen brands had high penetration in the urban areas in the India and were marketed to the target population of this study. The Indian brands were chosen, based on the criteria that they were clearly local and were marketed to compete with selected Western brands, and included in the list of brands in order to provide variance in the perceived brand origin. Further, the fictitious brands were added to the list to be used to detect the extent of social desirability in the responses (i.e., to be viewed more favorably by others, participants may indicate a higher level of brand familiarity than actuality). The brand familiarity question, worded similarly to the Western retail format familiarity question, was responded on a 7-point Likert scale (1 = Very unfamiliar, 7 = Very familiar). One question ?[Brand name] is of Western (American/European) origin,? adapted from Batra et al. (2000), was used to assess perceived Western origin of the brands on a 7-point scale (1 = Very unlikely, 7 = Very likely). In order to 40 examine which retail formats were highly perceived to carry the brands included in this section, participants were asked respond on a 7-point scale (1 = Extremely unlikely, 7 = Extremely likely) to answer the following questions for each of the three Western retail formats presented earlier: ?[Brand name] is available in a [(1) specialty store, (2) shopping mall, and (3) hypermarket]?. The last section of the questionnaire contained demographic questions including age, gender, degree pursued, current and prior locations of residence, language, monthly pocket money, monthly household income, and monthly expenditure on clothing. Sampling and Data Collection Procedure A convenience sample of 120 students (58 females and 32 males), aged between 19 and 25 years old, were recruited through several classes at a college located in an urban area in Northern India. A brief explanation of the purpose of the study was orally provided to the students, and the information letter and the questionnaire were distributed in undergraduate (Bachelor of Science) and graduate classes (Master of Science). If students decided to participate in the study after reading the information letter, they completed the questionnaire and returned it to the instructor in the class. Data Analysis and Results Brand Selection The Phase 1 data were analyzed to determine four brands that were highly recalled and familiar, were most likely to be of a Western origin, and represented a diverse mix of brands in terms of brand positioning. First, brand familiarity scores for the two fictitious brands were 41 evaluated to check for respondents? social desirability bias. A response of 3 or greater on a 7- point scale (1 = Very Unfamiliar, 7 = Very Familiar) to the brand familiarity question for either of the two fictitious brands was determined to be a biased answer due to social desirability. A total of 30 cases were removed from the data on account of the social desirability bias, resulting in 90 usable responses for further analysis. Content analysis of the open-ended recall question revealed the recall frequency of the brands, and as expected it was found that many recall responses listed brands that carried both apparel and footwear (e.g. Reebok and Adidas) (see Table 3.3). In addition, brands were ranked according to their brand familiarity mean scores (see Table 3.4). Then, for the brands that were highly recalled and familiar, participants? perceived likelihood of these brands to be of Western origin was assessed (see Table 3.4). Based on the recall, familiarity, and perceived Western origin scores, two sportswear/footwear brands (Reebok and Adidas) and two fashion apparel brands (Levi?s and Tommy Hilfiger) that were most frequently recalled, most familiar, and most highly perceived to be of Western origin were selected to be used in Phases 2 and 3 of the study. Western Retail Format Selection Content analysis of the open-ended recall question was conducted to identify two Western retail formats that were most frequently recalled by the participants. Descriptive statistics were also calculated to assess the participants? familiarity of Western retail formats (see Table 3.5). The recall frequencies and familiarity scores revealed that two Western retail formats, shopping mall and specialty store, were most frequently recalled and were relatively familiar store types to the participants. Participants also indicated that Reebok, Adidas, Levis, and Tommy Hilfiger are highly likely to be available in shopping malls and specialty stores (see Table 3.6). 42 Table 3.3. Phase 1 brand recall statistics. Brand Name f Overall (n = 90) Female (n = 58) Male (n = 32) Reebok 75 53 22 Adidas 68 46 22 Levis 60 36 24 Puma 51 33 18 Nike 51 31 20 Tommy Hilfiger 43 23 18 Lee 41 31 10 Pepe Jeans London 40 31 9 United Colors of Benetton 34 23 10 Lee Cooper 29 20 9 Table 3.4. Phase 1 brand familiarity and Western origin perception descriptive statistics Brand Name Brand Familiarity Western Origin Overall (n = 90) Female (n = 58) Male (n = 32) Overall (n = 90) M SD M SD M SD M SD Reebok 6.21 1.73 6.21 1.69 6.22 1.83 5.79 1.74 Adidas 6.08 1.70 5.98 1.75 6.25 1.60 5.46 2.06 Puma 6.06 1.62 6.05 1.44 6.06 1.92 5.42 1.88 Nike 5.82 1.58 5.76 1.80 5.94 1.93 5.24 2.15 Levis 5.48 1.96 5.33 1.94 5.75 1.98 4.96 1.98 Pepe Jeans 5.47 1.92 5.60 1.69 5.22 2.82 5.08 2.06 Tommy Hilfiger 5.26 2.22 4.84 2.29 6.00 1.92 4.89 2.21 United Colors of Benetton 5.24 2.34 4.98 2.42 5.72 2.14 4.99 2.30 Armani 4.89 2.28 4.69 2.26 5.25 2.31 4.49 2.34 Wrangler 4.77 2.21 4.31 2.32 5.59 1.76 4.39 2.21 Lee Cooper 4.56 2.02 4.62 2.11 4.44 1.86 4.31 2.08 Diesel 4.52 2.04 4.34 2.06 4.84 1.99 3.66 2.07 Calvin Klein 4.49 2.37 4.09 2.44 5.22 2.09 3.71 2.38 Lacoste 4.17 2.28 3.69 2.42 5.03 2.10 3.47 2.04 Lee 4.17 1.91 4.22 2.01 4.06 1.74 3.81 1.96 Espirit 3.83 2.54 3.59 2.51 4.28 2.58 3.48 2.23 Guess 3.42 2.22 3.29 2.11 3.66 2.43 3.24 2.07 Nautica 3.01 2.36 2.62 2.14 3.72 2.59 2.90 2.15 DKNY 2.96 2.01 2.60 1.96 3.59 1.98 2.66 1.88 Marks & Spencer 2.76 1.99 2.78 2.01 2.72 1.99 2.93 2.15 43 Table 3.5. Phase 1 Western retail format recall and brand familiarity statistics (n = 90) Western Retail Format Recall Familiarity f M SD Shopping mall 66 5.53 1.60 Specialty Store 58 4.74 1.83 Hypermarket 21 4.70 1.76 Department Store 13 5.21 1.76 Table 3.6. Phase 1 brand availability in Western retail formats descriptive statistics (n = 90) Brand Name Western Retail format Shopping mall Specialty Store Hypermarket M SD M SD M SD Reebok 5.98 1.72 5.76 1.83 5.04 2.27 Adidas 5.77 1.95 5.53 1.94 4.77 2.32 Levis 5.31 2.07 4.71 2.13 4.18 2.33 Tommy Hilfiger 4.76 2.24 4.56 2.28 4.17 2.36 Puma 5.77 1.76 5.51 1.91 4.69 2.35 Nike 5.46 1.97 5.41 1.95 4.42 2.34 Pepe Jeans 5.06 2.01 4.98 2.03 4.52 2.21 United Colors of Benetton 4.88 2.30 4.70 2.33 3.96 2.33 Armani 4.23 2.23 4.32 2.25 3.61 2.29 Wrangler 4.26 2.14 4.43 2.14 3.88 2.17 Lee Cooper 4.44 2.06 4.04 1.99 4.00 2.09 Diesel 3.56 2.13 3.49 2.01 3.27 1.93 Calvin Klein 3.98 2.25 4.03 2.29 3.44 2.28 Lacoste 3.93 2.13 3.92 2.19 3.29 2.12 Lee 4.49 2.06 3.94 2.06 3.64 2.20 Espirit 3.87 2.34 3.88 2.35 3.49 2.32 Guess 3.33 2.12 3.21 2.13 2.92 2.10 Nautica 2.76 2.10 2.96 2.11 2.76 2.10 DKNY 2.77 2.03 2.96 2.04 2.73 2.03 Marks & Spencer 3.02 2.09 2.98 2.04 3.04 2.09 44 CHAPTER 4. PHASE 2: PRETEST 2 The second phase of this study consisted of the second pretest conducted to examine the psychometric properties of the scales to be used in the main survey and establish their construct validity and reliability. This pretest was conducted using a paper-based survey with a student sample. Eight versions of the questionnaire were created, each including one of the four brands (Reebok, Adidas, Levis, and Tommy Hilfiger) and one of the two retail formats (Shopping malls and specialty stores) selected from Phase 1 (see Table 4.1). Respondents were randomly assigned to one of the eight versions of the questionnaire and completed the survey in regard to the assigned brand and retail format. Table 4.1. Questionnaire versions used in Phase 2 (n = 360) Questionnaire Version Brand Western Retail format n 1 Adidas Shopping mall 45 2 Adidas Specialty store 45 3 Levis Shopping mall 45 4 Levis Specialty store 45 5 Reebok Shopping mall 45 6 Reebok Specialty store 45 7 Tommy Hilfiger Shopping mall 45 8 Tommy Hilfiger Specialty store 45 45 Method Instruments The questionnaire contained the measures of Western brand familiarity, Western retail format familiarity, perceived value of the assigned Western brand and Western retail format, subjective norm regarding the assigned Western brand and Western retail format, perceived behavioral control towards purchasing the assigned Western brand and shopping at the assigned Western retail format, a purchase intention towards the assigned Western brand at the assigned Western retail format, need for distinctiveness, and acculturation. Following is a detailed description of the measurements (see Appendix D for the questionnaire). Familiarity. Two questions regarding familiarity of the participant with the assigned Western brand (?How familiar are you with this brand??) and Western retail format (?How familiar are you with this type of store??) were included to assess the level of familiarity with the Western brands and Western retail formats among the sample. Both the questions were rated on a 5-point Likert scale, ranging from not at all familiar (1) to very familiar (5). Perceived value. To measure perceived value of a Western brand and a Western retail format, this study adapted items from Sweeney and Soutar?s (2001) Consumer Perceived Value Scale (PERVAL). The PERVAL scale includes 19 items that measure four dimensions of perceived value including functional value (quality), functional value (price), emotional value, and social value of consumer durable goods at the brand level. This scale was modified for this study so that the item wordings were applicable to perceived value of a Western brand and perceived value of a Western retail format (see Table 4.2). Two items were added for perceived value of a Western brand (?I would feel excited to use this brand.? and ?This brand is worth the price?) and perceived value of a Western retail format (?I would feel excited to shop at this type 46 Table 4.2. Measurements for perceived value adapted from Sweeney and Soutar (2001) Construct Dimension Item Item Abbreviation Perceived value of a Western brand Functional value (quality) This brand has consistent quality. quality1 This brand is well made. quality2 This brand has an acceptable standard of quality. quality3 This brand has good workmanship quality4 This brand would last a long time quality5 This brand would perform consistently quality6 Functional value (price) This brand is reasonably priced. price1 This brand offers value for money. price2 This brand offers good products for the price. price3 This brand is worth the price. price4 This brand is economical. price5 Emotional value This brand is one that I would enjoy. emotion1 This brand makes me want to buy it. emotion2 I would feel relaxed using this brand. emotion3 I would feel excited to use this brand. emotion4 This brand would make me feel good. emotion5 This brand would give me pleasure. emotion6 Social value This brand would help me feel acceptable. social1 This brand would improve the way I am perceived. social2 This brand would help me give a good impression to other people. social3 This brand would give me social approval. social4 Perceived value of a Western retail format Functional value (quality) This type of store provides consistent quality of service. quality1 This type of store provides consistent quality of service. quality2 This type of store provides consistent quality of products. quality3 This type of store has superior quality of service. quality4 This type of store has superior quality of shopping environment. quality5 This type of store has superior quality of products. quality6 Functional value (price) This type of store carries reasonably priced products. price1 This type of store offers value for money. price2 This type of store provides good products and service for the price. price3 Shopping at this store is worth the price. price4 This type of store would be economical. price5 Perceived value of a Western retail format Emotional value I would enjoy shopping at this type of store. emotion1 This type of store makes me want to visit it. emotion2 I would feel relaxed shopping at this type of store. emotion3 I would feel excited to shop at this type of store. emotion4 I would feel good shopping in this type of store. emotion5 Visiting this type of store would give me pleasure. emotion6 47 Table 4.2 (Continued) Construct Dimension Item Item Abbreviation Perceived value of a Western retail format Social value Shopping at this type of store would help me feel acceptable. social1 Shopping at this type of store would improve the way I am perceived. social2 Shopping at this type of store would help me give a good impression to other people. social3 Shopping at this type of store would give me social approval. social4 of store.? and ?Shopping at this store is worth the price?), thereby increasing the total number of items to 21. For the four perceived value dimensions, the reported reliability of the original scale was in the range of .80 to .94 (Sweeney & Soutar, 2001). All items were rated on a 5-point Likert scale, ranging from strongly disagree (1) to strongly agree (5). Subjective norm. Four items were used to measure each of the subjective norm towards buying a Western brand and that towards shopping at the Western retail format. These items were adapted from the sample items provided by Ajzen (2002) to measure the subjective norm in TPB. The sample items provided by Ajzen (2002) measured the subjective norm (opinions of important others) regarding walking on a treadmill for 30 minutes. These sample items were rephrased so that they capture Indian consumers? perceived importance of others? approval/disapproval regarding purchasing a Western brand and shopping at a Western retail format. For example, an original sample item provided by Ajzen (2002) ?Most people who are important to me think that I should/should not walk on a treadmill for at least 30 minutes each day in the forthcoming month? was rephrased to ?Most people who are important to me think that I should/should not buy this brand.? The remaining four items were rephrased following the 48 Table 4.3. Measurements for subjective norms adapted from Ajzen (2002) Construct Itema Item Abbreviation Subjective norm towards purchasing a Western brand Most people who are important to me think that I should not/should buy this brand. norm1 It is completely false/completely true that most people who are important to me buy this brand. norm2 The people in my life whose opinions I value do not buy/ buy this brand. norm3 It is extremely unlikely/extremely likely that many people like me buy this brand. norm4 Subjective norm towards shopping at a Western retail format Most people who are important to me think that I should not/should shop at this type of store. norm1 It is completely false/completely true that most people who are important to me shop at a ______ store. norm2 The people in my life whose opinions I value do not shop/shop at this store. norm3 It is extremely unlikely/extremely likely that many people like me shop at a _____ store. norm4 a Bolded phrases indicate semantic differential scale end points for each item. same logic. These items were measured on a semantic differential scale with pairs of bipolar phrases on a 5-point scale (see Table 4.3). Perceived behavioral control. Fourteen items that measured perceived behavioral control of buying the assigned Western brand and shopping at the assigned Western retail format were adapted from the sample items provided by Ajzen (2002) to measure perceived behavioral control in TPB. The sample items provided by Ajzen (2002) measured perceived behavioral control of walking on the treadmill for 30 minutes. Thus, the sample items were rephrased to capture Indian consumers? confidence in their ability to purchase a Western brand and shop at a Western retail format. For example, an original sample item provided by Ajzen (2002), ?For me to walk on a treadmill for at least 30 minutes each day in the forthcoming month would be impossible/possible?, was rephrased to ?It is impossible/possible for me to buy this brand.? The 49 Table 4.4. Measurements for perceived behavioral control adapted from Ajzen (2002) Construct Items Item Abbreviation Perceived behavioral control of purchasing a Western brand For me to buy this brand would be impossible/possible even if I wanted. control1 It is definitely false/definitely true that if I wanted to, I could buy this brand. control2 I believe I have no control/complete control over buying this brand. control3 It is definitely false/definitely true that it is mostly up to me whether or not I buy this brand. control4 It is definitely false/definitely true that if I wanted to, I could buy this brand because I can afford it. control5 It is definitely false/definitely true that if I wanted to, I could buy this brand because I can make the time to shop for it. control6 It is definitely false/definitely true that if I wanted to, I could buy this brand because it is available in the store that I can go. control7 Perceived behavioral control of shopping at the a Western retail format For me to shop at this type of store would be- impossible/possible even if I wanted to control1 It is definitely false/definitely true that if I wanted to, I could shop at this type of store- control2 I believe that I have no control/complete control over shopping at this type of store. control3 It is definitely false/definitely true that it is mostly up to me whether or not I shop at this type of store. control4 It is definitely false/definitely true that if I wanted to, I could shop at this type of store because I can afford it. control5 It is definitely false/definitely true that if I wanted to, I could shop at this type of store because I can make the time to go to a _____ store. control6 It is definitely false/definitely true that if I wanted to, I could shop at this type of store because it is located within the distance I can travel. control7 a Bolded phrases indicate semantic differential scale end points for each item. remaining three sample items provided by Ajzen (2002) were rephrased in the same manner. Additionally, Ajzen?s (2002) sample item ?If I wanted to I could walk on a treadmill for at least 30 minutes each day in the forthcoming month? was rephrased to measure behavioral control in 50 terms of price, time and availability of the brand and retail format. Therefore, the following three items were included to measure perceived behavioral control: ?It is definitely true/definitely false that if I wanted to, I could buy this brand because I can afford it; I can make the time to shop for it; it is available in the store that I can go.? Similarly, the sample item was rephrased to form three items for a retail format including ?It is definitely true/definitely false that if I wanted to, I could shop at a_____ store because I can afford it; I can make the time to go to a _____ store; it is located within the distance I can travel.? The items were measured on a 5-point semantic differential scale with pairs of bipolar adjectives (see Table 4.4). Purchase intention. One item that measured a purchase intention towards buying the assigned Western brand at the assigned Western retail format was adapted from sample items provided by Ajzen (2002) to measure behavioral intentions in TPB. Ajzen?s (2002) sample item measuring an intention of walking on treadmill, ?I intend to walk on a treadmill for at least 30 minutes each day in the forthcoming month? was rephrased to ?How likely are you to buy this brand at this type of store?? The purchase intention item was measured on a 5-point Likert scale with 1 for extremely unlikely and 5 for extremely likely. Need for distinctiveness. The researcher developed a 11 item scale to measure two dimensions of need for distinctiveness: (1) need for differentiation from less ideal social (or status) group (five items) and (2) need for affiliation with an ideal social (or status) group (six items) (see Table 4.5). Several scales related to status consumption, conspicuous consumption, and need for uniqueness were reviewed to create the measurements for need for distinctiveness. For the need for differentiation dimension, three items from Workman and Kidd?s (2000) need for uniqueness scale and two items from Dubois, Czellar, and Laurent?s (2005) attitudinal scale towards luxury were adapted. 51 Table 4.5. Measurements for need for distinctiveness Dimension Items Item Abbreviation Original Scale Need for differentiation I do not like people to think that I am a conventional member of the general population. differ1 Workman & Kidd (2000)?s need for uniqueness scale Feeling similar to the general population makes me feel uncomfortable. differ2 I would rather be just like the general population than be viewed as a high- status person. (Reversed) differ3 I have a desire to act differently from the general population. differ4 Dubois, Czellar,& Laurent (2005)?s attitudinal scale towards luxury I have a desire to differentiate myself from the general population. differ5 Need for affiliation It is important for me that others see me belong to an upper class in the society. affiliate1 Kumar, Guruvayurappan& Banerjee (2007)?s cultural values scale I often behave in a manner that makes me fit the upper class in the society. affiliat2 I often pay attention to how upper-class people behave. affiliate3 I am interested in high status. affiliate4 O?Cass& Frost (2002)?s status & conspicuous consumption scale It is important to me that I belong to a group with status. affiliate5 It is important to me to enhance my image to belong to a group with status. affiliate6 The items corresponding to Workman and Kidd?s (2000) scale and Dubois, Czellar, and Laurent?s (2005) scale were rephrased to reflect an individual?s need for differentiation from the general population, rather than reflecting need for uniqueness and attitude towards luxury. For example, the item ?It bothers me if people think I am too unconventional? (reverse coded) from Workman and Kidd?s (2000) scale was rephrased to ?I do not like people to think that I am a conventional member of the general population.? The remaining four items were rephrased in the same manner. 52 The scale for the need for affiliation dimension was developed based on three items from Kumar, Guruvayurappan, and Banerjee?s (2007) cultural values scale and three items from O?Cass and Frost?s (2002) status and conspicuous consumption scales. The former three items were rephrased to reflect need for conformity with the upper class, rather than reflecting need for conformity in general. For example, the item ?It is important for me that others approve of what I do? was rephrased to ?It is important for me that others see me belong to an upper class in the society.? The latter three items based on O?Cass and Frost (2002) were rephrased to reflect need for affiliation with a group with high status. For example, the item ?Status is important to me? was rephrased to ?I am interested in high status.? Remaining two items were rephrased following same logic. All items were rated on a 5-point Likert scale (1 = strongly disagree, 5 = strongly agree). The greater the score, the greater the need for distinctiveness (except the reverse-coded item). Acculturation. Acculturation was measured using items adapted from Cleeveland and Laroche?s (2007) acculturation to global consumer culture scale (AGCC). The original scale consists of five dimensions of acculturation including exposure to marketing activities of multi- national companies (EXM), English language usage/exposure (ELU), global mass media exposure (GMM), openness and desire to emulate global consumer culture (OPE), and self- identification with global consumer culture (IDT). All five dimensions were reported to have good reliability ranging from .69 to .88 (Cleeveland & Laroche, 2007). The items from the EXM, OPE, and IDT dimensions were modified to reflect Western culture rather than global or American culture, whereas items from the ELU and GMM dimensions were adopted as in the original scale. The original scale had 57 items in total but only the items that were reported by Cleeveland and Laroche (2007) to have factor loadings greater than .70 were used in this study to 53 Table 4.6. Measurement for acculturation adapted from Cleeveland and Laroche (2007) Dimension Item Item Abbreviation Exposure to marketing activities of Western companies I enjoy watching advertising for Western products on TV. accul1 I enjoy seeing ads for Western products everywhere accul2 In my city, I like seeing billboards and advertising signs for Western products. accul3 English language usage/exposure I feel very comfortable speaking in English. accul4 I often speak English with family or friends. accul5 I speak English regularly. accul6 Western mass media exposure I enjoy watching Hollywood films at the theatre. accul7 Openness and desire to emulate global consumer culture I think people my age are basically the same around the world. For example, a 20-something in India is basically the same as a 20-something in the U.S. accul8 I think that my lifestyle is almost the same as that of people of my age-group in Western countries. accul9 I think my lifestyle is almost the same as that of people of my social class in Western countries. accul10 Self-identification with Western consumer culture The way I dress is influenced by the advertising activities of Western companies. accul11 Advertising by brands from Western countries has a strong influence on my shopping choices. accul12 reduce the scale to a more parsimonious set of 12 items (see Table 4.6). The items were rated on a 5-point Likert scale (1 = strongly disagree, 5 = strongly agree). Demographic items. Questions addressing demographic and socio-economic characteristics including age, gender, language, location of residence, marital status, education level, occupation, monthly household income, and monthly expenditure on clothing were included in the demographic section of the questionnaire. An additional questionnaire regarding distance traveled to buy the assigned Western brand at the assigned Western retail format was included in the demographic section. 54 Sampling and Data Collection Phase 2 respondents were recruited through a convenience sampling procedure. A convenience sample (between the ages of 19 and 35 years) of 360 students was recruited through several undergraduate classes (Bachelor of Science, Bachelor of Arts, Bachelor of Business Administration, and Bachelor of Computer Application) at a college located in an urban area in Northern India. The self-administered questionnaire with an information letter was distributed in the classes following a brief oral explanation of the purpose of the study. Each student received one version of the questionnaire that was randomly assigned among the eight versions (see Table 4.1). Students read the information letter, and if they decided to participate in the study, they completed the questionnaire in the classroom and returned their completed questionnaire to the instructor in the class. Data analysis and Results The data analysis for Phase 2 included principal components analysis (PCA), confirmatory factor analysis (CFA), discriminant and convergent validity tests, and Cronbach?s alpha coefficients. First, the data were randomly split into two data sets of an equal sample size (n = 180 for each set) so that PCA and CFA could be conducted on separate sets of data. Provided below is a discussion of the data analysis and results for the various scales used in the study including perceived value, subjective norm, perceived behavioral control, acculturation, and need for distinctiveness. 55 Sample Description The sample size used for data analysis was 360 with 114 women and 245 men. The age distribution of respondents revealed that all the respondents were between the age ranges of 19- 28 years. In terms of the educational experience, the respondents with 12th grade or less formed the largest group (64.4%), followed by a college degree (18.9%), and some college or technical school (10.1%). In terms of the marital status, 96.7% of the sample was single. In regards to the household income, the largest group (40%) of respondents had household income greater than Rs. 20,000, followed by those with household income between Rs. 10,001 to 20,000 (17.2%). The monthly expenditure on clothing was Rs. 500 and less for 27.8% of respondents, followed by those who spent between Rs. 1001 to Rs. 1500. Most respondents lived in a city (72.2%), followed by villages (16.7%) and towns (10.6%). Perceived Value Principal component analysis. Separate PCAs were conducted for the 21 brand perceived value items and the 21 retail format perceived value items. In order to identify the appropriate items and components to retain, four criteria were considered: 1) Kaiser?s rule of eigenvalue greater than 1.0, 2) the number of large drops in the scree plot, 3) factor loadings of each item greater than .50 on its corresponding factor but below .30 on other factors (Kline, 1998), and 4) the conceptual meaning of the items. Kaiser?s rule (eigenvalue > 1.0) suggested five components, and scree plots also provided support for five components for both the brand and retail format contexts. However, the fifth component was not well defined because the brand perceived value data resulted in only two items (see Table 4.7) and the retail format perceived value data resulted in only one item (see Table 4.8) with high loadings (>.50) on this component. 56 Table 4.7. Principal components analysis results: Perceived value of Western brands Component Loading Item Component 1 Component 2 Component 3 Component 4 Component 5 I would feel relaxed using this brand. 0.771 This brand would make me feel good. 0.754 This brand would give me pleasure. 0.694 This brand makes me want to buy it. 0.681 This brand is one that I would enjoy. 0.672 This brand would help me feel acceptable. 0.617 0.345 I would feel excited to use this brand. 0.544 0.351 This brand has consistent quality. 0.707 This brand has an acceptable standard of quality. 0.698 This brand is well-made. 0.602 This brand would perform consistently. 0.602 This brand would last a long time. 0.315 0.535 This brand offers value for money. 0.774 This brand is reasonably priced. 0.747 This brand offers good products for the price. 0.670 This brand is worth the price. 0.359 0.633 This brand would give me social approval. 0.789 This brand would improve the way I am perceived. 0.670 This brand would help me give a good impression to other people. 0.647 This brand has good workmanship. 0.317 0.698 This brand is economical. 0.308 0.650 Eigenvalue 6.144 2.050 1.594 1.265 1.098 Variance explained 29.256 9.762 7.590 6.025 5.230 57 Table 4.8. Principal component analysis results: Perceived value of Western retail formats Component Loading Item Component 1 Component 2 Component 3 Component 4 Component 5 I would feel good shopping in this type of store. 0.684 Visiting this type of store would give me pleasure. 0.668 0.337 I would feel relaxed shopping at this type of store. 0.643 This type of store makes me want to visit it. 0.628 0.306 I would feel excited to shop at this type of store. 0.62 0.348 I would enjoy shopping at this type of store. 0.571 0.371 Shopping at this type of store would help me feel acceptable. 0.531 0.351 0.312 This type of store has superior quality of service. 0.776 This type of store has superior quality of shopping environment. 0.756 This type of store provides consistent quality of products. 0.746 This type of store has superior quality of products. 0.674 This type of store provides consistent quality of service. 0.504 0.616 This type of store provides consistent quality of shopping environment. 0.417 0.579 0.363 Shopping at this type of store would give me social approval. 0.811 Shopping at this type of store would help me give a good impression to other people. 0.788 Shopping at this type of store improves the way I am perceived. 0.418 0.591 Shopping at this type of store is worth the price. 0.774 This type of store offers value for money. 0.714 0.328 58 Table 4.8 (continued) Component Loading Item Component 1 Component 2 Component 3 Component 4 Component 15 This type of store carries reasonably priced products. 0.829 This type of store provides good products and service for the price. 0.388 0.304 0.328 0.480 This type of store would be economical. 0.395 0.448 Eigenvalue 7.245 1.809 1.464 1.357 1.041 Variance explained 34.498 8.612 6.970 6.460 4.956 Therefore, another PCA was run with the 21 perceived value items by specifying four components to extract for both the brand and retail format data. The four-component solution provided clearer loading structure and conceptual meanings for each component (see Tables 4.9 and 4.10). The final components in the four-factor solution included emotional value, functional value (quality), functional value (price), and social value (see Tables 4.9 and 4.10). Emotional value component measured the utility derived from feelings generated by the brand. Of the seven items loading on emotional value six items were from the original pool of items corresponding to emotional value but one item corresponded to social value component. Accordingly, even though in the original scale four items corresponded to social value component measuring the utility of the brand in terms of its ability to enhance social self-concept, the four-component solution revealed that only three items were loading on social value. In the case of functional value (quality), measuring utility of the brand in terms of perceived quality, six items were loading on the component as defined in the original scale. Five items capturing the perceived utility of the 59 Table 4.9. Principal component analysis results: Perceived value of Western brands-four factor solution Component Loading Item Emotional Value Functional Value (quality) Functional Value (price) Social Value I would feel relaxed using this brand. 0.774 This brand would make me feel good. 0.744 This brand makes me want to buy it. 0.693 0.318 This brand is one that I would enjoy. 0.661 This brand would give me pleasure. 0.649 0.333 This brand would help me feel acceptable. 0.561 0.439 I would feel excited to use this brand. 0.519 0.370 This brand has consistent quality. 0.739 This brand has an acceptable standard of quality. 0.655 0.334 This brand is well-made. 0.641 This brand would last a long time. 0.320 0.564 This brand would perform consistently. 0.527 This brand has good workmanship. 0.480 This brand offers value for money. 0.782 This brand offers good products for the price. 0.716 This brand is reasonably priced. 0.695 This brand is worth the price. 0.344 0.587 This brand is economical. 0.313 0.501 This brand would improve the way I am perceived. 0.736 This brand would give me social approval. 0.668 This brand would help me give a good impression to other people. 0.315 0.590 Eigenvalue 6.144 2.050 1.594 1.265 Variance explained 29.256 9.762 7.590 6.025 Cronbach?s alpha .838 .725 .724 .708 60 Table 4.10. Principal component analysis results: Perceived value of Western retails format- four factor solution Component Loading Item Emotional Value Functional Value (quality) Social Value Functional Value (price) I would feel good shopping in this type of store. 0.674 I would feel excited to shop at this type of store. 0.664 0.322 Visiting this type of store would give me pleasure. 0.662 0.348 This type of store makes me want to visit it. 0.658 I would feel relaxed shopping at this type of store. 0.628 I would enjoy shopping at this type of store. 0.531 0.392 Shopping at this type of store would help me feel acceptable. 0.453 0.386 This type of store would be economical. 0.435 0.398 This type of store has superior quality of service. 0.782 This type of store provides consistent quality of products. 0.751 This type of store has superior quality of shopping environment. 0.738 This type of store has superior quality of products. 0.654 This type of store provides consistent quality of service. 0.483 0.631 This type of store provides consistent quality of shopping environment. 0.356 0.622 Shopping at this type of store would give me social approval. 0.811 Shopping at this type of store would help me give a good impression to other people. 0.782 Shopping at this type of store improves the way I am perceived. 0.409 0.597 This type of store offers value for money. 0.764 Shopping at this type of store is worth the price. 0.642 This type of store carries reasonably priced products. 0.635 61 Table 4.10 (Continued) Component Loadings Items Emotional Value Functional Value (quality) Social Value Functional Value (price) This type of store provides good products and service for the price. 0.412 0.558 Eigenvalue 7.245 1.809 1.464 1.357 Variance explained 34.498 8.612 6.970 6.460 Cronbach?s alpha 0.821 0.864 0.740 0.685 brand due to reduction of short and long term costs loaded on the component functional value (price) as defined in the original scale. Confirmatory factor analysis. CFA was then conducted on the second set of data using Analysis of Moment Structures (AMOS) 18 employing the Maximum Likelihood estimation method. CFA was performed on the four-factor model (see Figures 4.1 and 4.2) suggested from the final PCA results to determine if the four-factor solution provided an acceptable fit and to assess the construct validity of the scale. The model fit was first examined by assessing the chi- square statistics (?2brand = 323.635, df = 183, p < .001; ?2retail format = 350.082, df = 183, p < .001). The chi-square statistics indicated an imperfect fit, but considering that this statistic is sensitive to sample size (Hair et al., 2006) other incremental fit indices including Comparative Fit Index (CFI), Normed Fit Index (NFI), Tucker-Lewis Index (TLI) and root mean square error of approximation (RMSEA) were also examined. Incremental fit indices (CFI, NFI, and TLI) with value greater than .90 suggest a good fit (Hu & Bentler, 1992). RMSEA values less than .05 suggest a superior fit (McCallum et al., 1996), RMSEA values ranging from .05 to .08 suggest a good fit (Hu & Bentler, 1992), and RMSEA value ranging from .08 to .10 suggest a mediocre fit, 62 Figure 4.1. Confirmatory factor analysis model: Perceived value of Western brands and RMSEA values greater than .10 suggest a poor fit of the model (McCallum et al., 1996). RMSEA for the four-factor model was smaller than .08 for both brand and retail format perceived value data (RMSEAbrand = .066; RMSEAretail format = .071), suggesting an acceptable fit of the four-factor model (Hu & Bentler, 1992). However, other incremental fit indices (CFIbrand *** p <.001 ?2 = 323.635, df = 183, p < .001 CFI = .895, NFI = .792, TLI = .880 RMSEA =.066 .73*** .57*** .69*** .66 ** * .90*** .65*** .43*** .68*** .65*** .58*** .47*** .59*** .57*** .65*** .67*** .73*** .79*** .80*** .72*** .68*** .62*** .53*** .62*** .57*** .65*** .77*** Functional Value (quality) Emotional Value Social Value Functional Value (price) quality1 quality2 quality3 quality4 quality5 quality6 price2 price3 price4 price5 emotion1 emotion2 emotion3 emotion4 emotion5 emotion6 social1 social2 social3 social4 .56*** price1 Note. Please refer to Table 4.2 for wording of the indicator items. 63 Figure 4.2. Confirmatory factor analysis model: Perceived value of Western retail formats = .895, NFIbrand = .792, TLIbrand = .880; CFIretail format = .876, NFIretail format = .775, TLIretail format = .857) had values smaller than .90, suggesting a poor fit. Since the data did not fit the model well, standardized estimates of factor loadings were examined to determine the appropriateness of items to their corresponding factors and to determine if there were any problematic items that should be revised or dropped. With the exception of the items price5 and social4 corresponding *** p <.001 ?2 = 350.082, df = 183, p < .001 CFI = .876, NFI = .775, TLI = .857 RMSEA =.071 .66*** .72*** .66*** .71 ** * .84*** .66*** .58*** .61*** .72*** .51*** .61*** .66*** .72*** .66*** .73*** .66*** .74*** .65*** .59*** .62*** .63*** .62*** .66*** .68*** .78*** .64*** Functional Value (quality) Emotional Value Social Value Functional Value (price) quality1 quality2 quality3 quality4 quality5 quality6 price2 price3 price4 price5 emotion1 emotion2 emotion3 emotion4 emotion5 emotion6 social1 social2 social3 social4 .51*** price1 Note. Please refer to Table 4.2 for wording of the indicator items. 64 to brands, the loadings of all indicators were positive and higher than .50 (see Figures 4.1 and 4.2). Convergent validity. Convergent validity was assessed by calculating Average Variance Extracted (AVE) scores using the formula provided below by Fornell and Larcker (1981) AVE = . ?[ ?i? ] Var(X) . ? [ ?i?]Var(X) +?[Var ( ?i? )] where ?i is the factor loading of xi on X; Var signifies the variance; ?i indicates the measurement error of xi; and ? denotes a sum (Fornell & Larcker, 1981). AVE scores greater than .50 indicate convergent validity of the scale items (Bagozzi, 1991). The AVE score of all four perceived value factors for both brands (AVEfunctional value (quality) = .390, AVEfunctional value (price) = .283, AVEemotional value ) = .442, AVEsocial value = .290) and retail format (AVEfunctional value (quality) = .434, AVEfunctional value (price) = .284, AVEemotional value ) = .362, AVEsocial value = .376) were below .50, suggesting that the scale lacked convergent validity and required further revisions to address the issue. Discriminant validity. Discriminant validity was assessed through two methods. First, factor correlations and their confidence intervals (factor correlations plus and minus 2 x standard errors of the factor correlation) were examined such that none of the confidence intervals contained 1.0 to demonstrate discriminant validity (Hair et al., 2006). Upon examination of factor correlation it was found that there was high correlation (> 0.60) between the four factors of perceived value for both brand and retail formats (see Table 4.11). However, factors having high correlation can also demonstrate discriminant validity, which can be verified through a more stringent method of examining confidence intervals. Therefore, confidence intervals were 65 examined and it was found that none of the confidence intervals contained 1.0, providing evidence of discriminant validity (Anderson & Gerbing, 1988). Second, chi-square difference tests were conducted between the original CFA model and six additional (constrained) models (for both perceived value of a brand and perceived value of a retail format) with a factor correlation parameter constrained to be 1.0 (Anderson & Gerbing, 1988), and a significant result (p < .05) would indicate a significantly better fit of the original model, indicating discriminant validity between the correlated factors. All constrained models revealed a significantly poorer fit than the unconstrained model (original CFA model) (see Table Table 4.11. Factor pair correlations for perceived value Factor Pair Correlation Coefficient Standard Error Confidence Intervals Brand Functional Value (quality) Functional Value (price) .657 .066 [.525,.789] Functional Value (price) Emotional Value .565 .070 [.425, .705] Emotional Value Social Value .903 .045 [.813, .993] Functional Value (quality) Emotional Value .652 .057 [.538, .766] Functional Value (quality) Social Value .752 .066 [.593, .857] Functional Value (price) Social Value .688 .076 [.536, .840] Retail format Functional Value (quality) Functional Value (price) .708 .059 [.590. .826] Functional Value (price) Emotional Value .716 .062 [.592, .840] Emotional Value Social Value .840 .048 [.744, .936] Functional Value (quality) Emotional Value .661 .059 [.543, .779] Functional Value (quality) Social Value .664 .062 [.540, .788] Functional Value (price) Social Value .657 .070 [. 517, .797] 66 Table 4.12. Chi-Square Difference tests for perceived value constructs Model Factors with correlation constrained (? = 1) Chi-Square difference test against base model ?2 df ??2 ?df p Brand Base Model Unconstrained 323.635 183 Model 1 Functional Value (quality) Social Value 346.789 184 23.154 1 < .001 Model 2 Functional Value (quality) Emotional Value 432.185 184 108.55 1 < .001 Model 3 Functional Value (quality) Functional Value (price) 376.582 184 52.947 1 < .001 Model 4 Functional Value (price) Emotional Value 403.380 184 79.745 1 < .001 Model 5 Functional Value (price) Social Value 347.698 184 24.063 1 < .001 Model 6 Emotional Value Social Value 328.781 184 5.146 1 < .05 Retail Format Base Model Unconstrained 350.082 183 Model 1 Functional Value (quality) Social Value 412.786 184 62.704 1 < .001 Model 2 Functional Value (quality) Emotional Value 434.637 184 84.555 1 < .001 Model 3 Functional Value (quality) Functional Value (price) 393.973 184 43.891 1 < .001 Model 4 Functional Value (price) Emotional Value 385.001 184 34.919 1 < .001 Model 5 Functional Value (price) Social Value 390.399 184 40.317 1 < .001 Model 6 Emotional Value Social Value 366.500 184 16.418 1 < .001 4.12). Thus, discriminant validity among the four perceived value factors was confirmed by the chi-square difference tests. Reliability. Cronbach?s alpha coefficients were calculated to examine the reliability of the 21 perceived value scale items. Established standards items with Cronbach?s alpha value greater than .70 were considered reliable (Hair, Anderson, Tatham, & Black, 1998). With the exception of functional value (price) for a retail format (? = .685), all perceived value 67 components exhibited satisfactory reliability with Cronbach?s alphas values greater than .70 (see Tables 4.9 and 4.10). Finalized items for main survey. PCA of the four-factor perceived value scale revealed that there were several items that exhibited cross-loadings (i.e., they did not meet the criteria of factor loadings greater than .50 on its corresponding factor but below .30 on other factors) but the factor loadings of these items on other factors were very close to .30. Therefore upon examination of the conceptual meaning of these items it was decided to retain them without making any revisions. However, one item corresponding to social value (This brand [or Shopping at this type of store] would help me feel acceptable) had a high factor loading on emotional value (0.561). Therefore, it was rephrased to ?This brand (or Shopping at this type of store) would help me feel socially acceptable? to better represent social value. Another social value item ?This brand (or Shopping at this type of store) would improve the way I am perceived? was also revised to ?This brand (or Shopping at this type of store) would improve the way I am perceived by other people?. CFA also revealed some fit and convergent validity issues in the perceived value scale. Therefore, standardized regression weights, wordings and conceptual meaning of all items were examined to identify problematic items and to clarify the meanings. The item ?this brand is economical? corresponding to price had low factor loading (.43) for Western brands. However, the wording and conceptual meaning of the item seemed to be appropriate and the standardized regression weight of the item for retail formats was higher than .50 (.58), therefore it was decided to retain this item without making any revisions. Another item ?this brand would give me social approval? had factor loading below .50 (.47) for Western brands. However, the standardized regression weight of the item for retail formats was higher than .50 (.58). It was 68 decided to retain this item without making any revision for Western brands, in order to maintain consistency between both scales for perceived value for Western brands and perceived value of Western retail formats. Subjective Norm Principal component analysis. PCA with varimax rotation was conducted for four item scale for both subjective norm for purchasing a Western brand and subjective norm for shopping at a Western retail format. Both Kaiser?s rule (eigenvalue > 1.0) and scree plots suggested one component for subjective norms for brand and subjective norms for Western retail format. Confirmatory factor analysis. In order to determine if the measurement models suggested by the EFA provided an acceptable fit, a CFA was performed on the second set of data for a model including one factor for both brand and retail format (see Figures 4.3 and 4.4). The model fit was first assessed through the chi-square statistics (?2brand = 2.332, df = 2, p =.312; ?2retail format = .223, df = 2, p = .894). The chi-square statistic indicated a perfect fit. Other fit indices including CFI, NFI, TLI and RMSEA were also examined. RMSEA value (RMSEAbrand = .030; RMSEAretail format = .000) was smaller than .05 suggesting a superior fit (Hu & Bentler, 1992). Other incremental fit indices (CFIbrand = .998, NFIbrand = .986, TLIbrand = .994; CFIretail format = 1.000, NFIretail format = .999, TLIretail format = 1.021) had values greater than .90, suggesting a good fit. Reliability. Cronbach?s alpha values were then calculated to assess the reliability of the subjective norm scale. The scale yielded Cronbach?s alpha values greater than .70 (?brand = 0.759; ?retail format = 0.769), suggesting good reliability of the scale. 69 Figure 4.3. Confirmatory factor analysis model: Subjective norms for Western brands Figure 4.4. Confirmatory factor analysis model: Subjective norms for Western retail formats Perceived Behavioral Control Principal component analysis. PCA with varimax rotation for seven item perceived behavioral control scale was conducted and both Kaiser?s rule (eigenvalue > 1.0) and scree plots *** p <.001 ?2 = 2.332, df = 2, p = .312 CFI = .998, NFI = .986, TLI = .994 RMSEA =.030 .60*** .65*** .80*** .57*** Subjective Norm norm1 norm2 norm3 norm4 Note. Please refer to Table 4.3 for wording of the indicator items. *** p <.001 ?2 = 0.223, df = 2, p = .8942 CFI = 1.000, NFI = .999, TLI = 1.021 RMSEA = .000 .66*** .75** .77*** .77*** Subjective Norm norm1 norm2 norm3 norm4 Note. Please refer to Table 4.3 for wording of the indicator items. 70 suggested one component solution for perceived behavioral control towards buying the assigned Western brand and shopping at the assigned Western retail format. Confirmatory factor analysis. The acceptability of the measurement model suggested by the EFA was then evaluated by conducting a one factor CFA model for both brand and retail format (see Figures 4.5 and 4.6). The model fit of the model was first assessed through the chi- square statistics (?2brand = 32.055, df = 14, p > .001; ?2retail format = 53.161, df = 14, p < .001). The chi-square statistic indicated a perfect fit for perceived behavioral control towards a Western brand, whereas it showed a poor fit for perceived behavioral control towards a Western retail format. Other fit indices including CFI, NFI, TLI and RMSEA were also examined. RMSEA value (RMSEAbrand = .085; RMSEAretail format = .125) was in the range of .08 to .10 for perceived behavioral control towards a Western brand, suggesting a mediocre fit. For perceived behavioral control towards a Western retail format, the RMSEA value was greater than .10, suggesting a poor fit (Hu & Bentler, 1992). However, other incremental fit indices (CFIbrand = .952, NFIbrand = .919, TLIbrand = .927; CFIretail format = .933, NFIretail format = .912, TLIretail format = .899) had values approaching .90 or greater than .90, suggesting an acceptable fit. Reliability. Cronbach?s alpha values were then calculated to assess the reliability of the perceived behavioral control scale. The scale yielded Cronbach?s alpha values greater than .70 (?brand = 0.836; ?retail format = 0.880), suggesting that the perceived behavioral control scale was reliable. 71 Figure 4.5. Confirmatory factor analysis model: Perceived behavioral control towards Western brands Figure 4.6. Confirmatory factor analysis model: Perceived behavioral control towards Western retail formats Need for Distinctiveness Principal component analysis. PCA with varimax rotation was conducted for the eleven item need for distinctiveness scale (see Table 4.13). Both scree plots and Kaiser?s rule (eigenvalue > 1.0) suggested three factors. However, upon examining factor loadings from *** p <.001 ?2 = 32.055, df = 14, p = .004 CFI = .952, NFI = .919, TLI = .927 RMSEA =.085 .63*** .73*** .72*** .72*** Perceived Behavioral Control control2 control3 control4 control5 .56*** control6 .61*** control1 .52*** control7 Note. Please refer to Table 4.4 for wording of the indicator items. *** p <.001 ?2 = 53.161, df = 14, p < .001 CFI = .933, NFI = .912, TLI = .899 RMSEA =.125 .59*** .80*** .79*** 79*** Perceived Behavioral Control control2 control3 control4 control5 .74** control6 .58*** control1 .71*** control7 Note. Please refer to Table 4.4 for wording of the indicator items. 72 Table 4.13. Principal component analysis results: Need for distinctiveness Component Loadings Item Component 1 Component 2 Component 3 I have a desire to differentiate myself from the general population. 0.812 I have a desire to act differently from the general population. 0.725 Feeling similar to the general population makes me feel uncomfortable. 0.632 I do not like people to think that I am a conventional member of the general population. 0.559 It is important for me that others see me belong to an upper class in the society. 0.490 0.461 I would rather be just like the general population than be viewed as a high-status person. 0.839 I often pay attention to how upper-class people behave. 0.732 I often behave in a manner that makes me fit the upper class in the society. 0.446 0.659 It is important to me to belong to a group with status. 0.852 It is important to me to enhance my image to belong to a group with status. 0.773 I am interested in status. 0.413 0.719 Eigenvalue 4.634 1.210 1.026 Variance explained 42.126 11.004 9.325 rotated component matrix and wordings of the items it was found that both second and third component constituted items corresponding to the dimension ?need for affiliation?. However, three items with the word ?upper class? loaded on second component and two items without the word ?upper class? loaded on the third component. Therefore, it was decided to assess the factor loadings of these items further by running a two-factor solution (see Table 4.14). After running a two-factor solution it was found that the three items with the word ?upper class?, corresponding to need for affiliation in the original scale, were cross-loading on the dimension need for differentiation. Therefore, it was decided to revise these items and retain a two-factor solution. 73 Table 4.14. Principal component analysis results: Need for distinctiveness -two-factor solution Component Loadings Item Need for Affiliation Need for Differentiation I am interested in status. 0.821 It is important to me to enhance my image to belong to a group with status. 0.712 It is important to me to belong to a group with status. 0.711 I often pay attention to how upper-class people behave. 0.598 0.365 I would rather be just like the general population than be viewed as a high-status person. 0.576 I often behave in a manner that makes me fit the upper class in the society. 0.555 0.545 I have a desire to differentiate myself from the general population. 0.807 I have a desire to act differently from the general population. 0.730 Feeling similar to the general population makes me feel uncomfortable. 0.629 I do not like people to think that I am a conventional member of the general population. 0.316 0.568 It is important for me that others see me belong to an upper class in the society. 0.413 0.552 Eigenvalue 4.634 1.210 Variance explained 42.126 11.004 Additionally, upon inspecting the item ?I would rather be just like the general population than be viewed as a high-status person? loading on need for affiliation it was found to be ambiguous as it could correspond to both need for differentiation and need for affiliation (when reverse coded). Therefore, it was decided to delete this item for further analysis. Confirmatory factor analysis. CFA was then performed on the second set of data to determine that a two-factor measurement model for ten item need for distinctiveness scale provides an acceptable fit to the data (see Figure 4.7). The model fit was first assessed through the chi-square statistics (?2 = 87.429, df = 34, p < .001). The chi-square statistic indicated an imperfect fit, but considering that this statistic is sensitive to sample size (Hair et al., 2006), other fit indices were also examined. Other incremental fit indices suggested an imperfect fit (NFI 74 = .862, TLI = .880,) to a close fit (CFI = .909). RMSEA value (RMSEA = .094) was between the .08 and .10 range, suggesting a mediocre fit (MaCallum et al., 1996). Convergent validity. Convergent validity of the ten item need for distinctiveness scale was then assessed by calculating AVE scores. The AVE score for both need for affiliation (AVE = .349) and need for differentiation (AVE = .301) dimension of need for distinctiveness was lower than .50 suggesting that the ten item scale lacked convergent validity and required further revisions to address the validity issue. Discriminant validity. Discriminant validity of the two-factor and ten item need for distinctiveness scale was then assessed through two methods. First, factor correlations and the confidence interval (factor correlations plus and minus 2 x standard errors of the factor correlation) (? = .924, SE = .042) was examined and it was found that the confidence interval Figure 4.7. Confirmatory factor analysis model: Need for distinctiveness *** p <.001 ?2 = 87.429, df = 34, p < .001 CFI = .909, NFI = .862, TLI = .880 RMSEA = .094 .92*** .62*** .65*** .66*** .62*** .56*** .69*** .63*** .63*** .67*** .75*** Need for Affiliation Need for Differentiation affiliate1 affiliate2 affiliate3 affiliate4 affiliate5 affiliate6 differ1 differ2 differ3 differ4 Note. Please refer to Table 4.5 for wording of the indicator items. 75 contained 1.0 (.84, 1.008) suggesting that the two factors were not discriminant (Anderson & Gerbing, 1988). Secondly, discriminant validity was assessed by conducting chi-square difference tests between the original CFA model and constrained with the factor correlation parameter constrained to be 1.0 (Anderson & Gerbing, 1988). The constrained model (?2 = 91.11, df = 35, p < .001) revealed a significantly better fit than the unconstrained model (original CFA model) (??2 = 3.681, ?df = 1, p < .001), reinforcing that two factors corresponding to need for distinctiveness were overlapping. Therefore, the scale warranted revisions to address discriminant validity issue. Reliability. Finally, the Cronbach?s alpha value for both the factors need for affiliation (? = 0.781) and for need for differentiation were greater than .70 (? = 0.720), suggesting that scale was reliable. Finalized items for main survey. Considering that both PCA and CFA revealed several problems the original 11 item called for revisions to improve the measurement items and to establish construct validity. There were three main problematic items in the scale with the word ?upper class?, corresponding to need for affiliation in the original scale. These items were cross- loading on the dimension need for differentiation. All three problematic items had one common theme (use of word ?upper class?) that differentiated them from the remaining need for affiliation items (with the word ?status?). Therefore, it was decided to retain these items after revising them to substitute ?upper class? with ?status? so that they measured need for affiliation with any status group that is perceived to be desirable among participants. For example the item ?It is important to me to enhance my image to belong to upper class? was revised to ?It is important to me to enhance my image to belong to a group with status?. Another item ?I often pay attention to how upper class people behave? was changed to ?I often pay attention to how people with status 76 Table 4.15. Revised scale for Need for Distinctiveness Construct Dimension Item Need for Distinctiveness Need for Differentiation I have a desire to differentiate myself from the general population. I have a desire to act differently from the general population. Feeling similar to the general population makes me feel uncomfortable. I do not like people to think that I am a conventional member of the general population. Need for Affiliation I often pay attention to how people with status behave. I often behave in a manner that makes fit with people with status. It is important for me that others see me belong to a group with status. It is important to me to belong to a group with status. It is important to me to enhance my image to belong to a group with status. I am interested in status. behave?. Similarly, the item ?I often behave in a manner that makes fit with upper class in society? was revised as ?I often behave in a manner that makes fit with people with status?. Finally, the item ?I would rather be just like the general population than be viewed as a high-status person? was considered ambiguous as it could correspond to both need for differentiation and need for affiliation (when reverse coded). Therefore, this item was removed from the final scale. The remaining items were retained without making any changes since they exhibited good factor loadings (items with greater than .50 on corresponding factor but below .30 on other factors) and were conceptually sound. Therefore, the finalized scale had two components and ten items (see Table 4.15). 77 Acculturation Principal component analysis. The underlying factor structure of the 12 item acculturation scale was examined by conducting PCA with varimax rotation (see Table 4.16). Both scree plots and Kaiser?s rule (eigenvalue > 1.0) suggested three factors. However, the original scale measured five dimensions of acculturation including exposure to marketing activities of multi-national companies (EXM), English language usage/exposure (ELU), global mass media exposure (GMM), openness and desire to emulate global consumer culture (OPE), and self-identification with global consumer culture (IDT) (Cleeveland & Laroche, 2007). The factor loadings from rotated component matrix were examined and it was found that several items did not show loadings above 0.5 on their corresponding component as defined in the original scale, suggesting problems with the factor structure. Examination of the conceptual meaning of the items also confirmed that the factor structure revealed by PCA was problematic. CFA and construct validity and reliability tests were not run due to the problematic factor structure. Finalized items for main survey. In order to improve the factor structure of the acculturation scale to be used in the main study, it was decided to make significant revisions by revising and adding items from the original Cleeveland and Laroche (2007) scale (See Table 4.22). For the dimension EXM, the item ?In my city, I like seeing billboards, and advertising signs for Western products? was simplified to ?I like seeing billboards, and advertising signs for Western products?. In the case of the dimension IDT, two more items, ?I enjoy dining at Western style restaurants? and ?I like to wear Western style clothing? adapted from the original scale, were added so that the item pool corresponding to IDT was sufficient to tap the theoretical meaning of the construct. Following the same logic, four items corresponding to GMM were 78 Table 4. 16. Principal Component Analysis Results: Acculturation Component Loadings Item Component 1 Component 2 Component 3 I often speak English with family or friends. 0.817 I speak English regularly. 0.73 I enjoy watching Hollywood films from western countries. 0.697 I feel very comfortable speaking in English. 0.616 0.499 I think people my age are basically the same around the world. For example, a 20- something in India is basically the same as a 20-something in the U.S. 0.54 0.41 I enjoy seeing ads for Western products everywhere 0.833 I enjoy watching advertising for Western products on TV. 0.815 In my city, I like seeing billboards, and advertising signs for Western products. 0.691 I think my lifestyle is almost the same as that of people of my social class in Western countries. 0.833 I think that my lifestyle is almost the same as that of people of my age-group in Western countries. 0.329 0.708 Advertising by brands from Western countries has a strong influence on my shopping choices. 0.444 0.693 The way that I dress is influenced by the advertising activities of Western companies. 0.337 0.451 0.573 Eigenvalue 5.451 1.327 1.033 Variance explained 45.425 11.058 8.607 added in the revised scale (see Table 4.17). However, items corresponding to OPE (three items) were deleted due to similarity in the conceptual meaning of these items and the items corresponding to GMM. It was decided to retain three items corresponding to the dimension ELU without making any changes. Therefore, the revised scale included four dimensions and 15 items (see Table 4.17). 79 Table 4.17. Revised scale for Acculturation Construct Dimension Item Acculturation Exposure to marketing activities of Western companies I enjoy watching advertising for Western products on TV. I enjoy seeing ads for Western products everywhere. I like seeing billboards and advertising signs for Western products. English language usage/exposure I feel very comfortable speaking in English. I often speak English with family or friends. I speak English regularly. Self-identification with global consumer culture Advertising by brands from Western countries has a strong influence on my shopping choices. The way that I dress is influenced by the advertising activities of Western companies. I like to wear Western style clothing. I enjoy dining at Western style restaurants. Global mass media exposure I enjoy watching films from Western countries. Some of my favorite actors/actresses are from Western countries. I enjoy listening to music that is from Western countries. I like Western television. I like to read about Western celebrities. 80 CHAPTER 5. PHASE 3: MAIN STUDY The third phase of this study consisted of the main study conducted to test the proposed hypotheses and to test the fit of the proposed model. The main study was implemented using a paper-based mall- and market-intercept survey among consumers in four cities in India. Eight versions of the questionnaire were created. Respondents were randomly assigned to one of the eight versions of the questionnaire and completed the survey in regard to the assigned brand and retail format. Method Instrument A questionnaire, refined based on the results of Phase 2, was used for the main study. Each version of the questionnaire contained questions about one of the four brands (Reebok, Adidas, Levis, and Tommy Hilfiger) and one of the two Western retail formats (Specialty Store and Shopping Mall) which were selected based on Phase 1 results. It contained for measuring Western brand familiarity, Western retail format familiarity, perceived value of the assigned Western brand and Western retail format, subjective norm regarding the assigned Western brand and Western retail format, perceived behavioral control towards purchasing the assigned Western brand and shopping at the assigned Western retail format, and a purchase intention towards the 81 Table 5.1. Finalized questionnaire items in Phase 2 Construct Dimension Item Item Abbreviation Brand Familiarity How familiar are you with this brand? familiar1 Western retail format familiarity How familiar are you with this type of store? familiar2 Perceived value of Western brand Functional Value (quality) This brand has consistent quality. quality1 This brand is well-made. quality2 This brand has an acceptable standard of quality. quality3 This brand has good workmanship. quality4 This brand would last a long time. quality5 This brand would perform consistently. quality6 Functional Value (price) This brand is reasonably priced. price1 This brand offers value for money. price2 This brand offers good products for the price. price3 This brand is worth the price. price4 This brand is economical. price5 Emotional Value This brand is one that I would enjoy. emotion1 This brand makes me want to buy it. emotion2 I would feel relaxed using this brand. emotion3 I would feel excited to use this brand. emotion4 This brand would make me feel good. emotion5 This brand would give me pleasure. emotion6 Social Value This brand would help me feel socially acceptable. social1 This brand would improve the way I am perceived by other people. social2 This brand would help me give a good impression to other people. social3 This brand would give me social approval. social4 Perceived value of Western retail format Functional Value (quality) This type of store provides consistent quality of service. quality1 This type of store provides consistent quality of shopping environment. quality2 This type of store provides consistent quality of products. quality3 This type of store has superior quality of service. quality4 This type of store has superior quality of shopping environment. quality5 This type of store has superior quality of products. quality6 82 Table 5.1 (Continued) Perceived value of Western retail format Functional Value (price) This type of store carries reasonably priced products. price1 This type of store offers value for money. price2 This type of store provides good products and service for the price. price3 Shopping at this type of store is worth the price. price4 This type of store would be economical. price5 Emotional Value I would enjoy shopping at this type of store. emotion1 This type of store makes me want to visit it. emotion2 I would feel relaxed shopping at this type of store. emotion3 I would feel excited to shop at this type of store. emotion4 I would feel good shopping in this type of store. emotion5 Visiting this type of store would give me pleasure. emotion6 Social Value Shopping at this type of store would help me feel socially acceptable. social1 Shopping at this type of store improves the way I am perceived by other people. social2 Shopping at this type of store would help me give a good impression to other people. social3 Shopping at this type of store would give me social approval. social4 Subjective norm regarding Western brand Most people who are important to me think that I should not/should buy this brand. norm1 It is completely false/completely true that most people who are important to me buy this brand. norm2 The people in my life whose opinions I value do not buy/buy this brand. norm3 It is extremely unlikely/extremely likely that many people like me buy this brand. norm4 Subjective norm regarding Western retail format Most people who are important to me think that I should not/should shop at this type of store. norm1 It is completely false/completely true that most people who are important to me shop at this type of store. norm2 The people in my life whose opinions I value do not shop/shop at this type of store. norm3 It is extremely unlikely/extremely likely that many people like me shop at this type of store. norm4 Perceived behavioral control towards Western brand For me to buy this brand would be impossible/possible even if I wanted. I believe that I have no control/complete control over buying this brand. control1 control2 83 Table 5.1 (Continued) Perceived behavioral control towards Western brand It is definitely false/definitely true that if I wanted to, I could buy this brand. control3 It is definitely false/definitely true that it is mostly up to me whether or not I buy this brand. control4 It is definitely false/definitely true that I afford to buy this brand if I wanted it. control5 It is definitely false/definitely true that I could make time to buy this brand if I wanted it. control6 It is definitely false/definitely true that this brand is available in the store where I can go control7 Perceived behavioral control towards Western retail format For me to shop at this type of store would be impossible/possible even if I wanted. control1 I believe that I have no control/complete control over shopping at this type of store. control2 It is definitely false/definitely true that if I wanted to, I could shop at this type of store. control3 It is definitely false/definitely true that it is mostly up to me whether or not I shop at this type of store. control4 It is definitely false/definitely true that I afford to shop at this type of store if I wanted to. control5 It is definitely false/definitely true that I could make time to shop at this type of store if I wanted to. control6 It is definitely false/definitely true that if I wanted to, I could shop at this type of store because it is located within the distance I can travel. control7 Purchase intention towards Western brand at Western retail format How likely are you to buy this brand at this store? purchase1 Need for Distinctiveness Need for Differentiation I have a desire to differentiate myself from the general population. differ1 I have a desire to act differently from the general population. differ2 Feeling similar to the general population makes me feel uncomfortable. differ3 I do not like people to think that I am a conventional member of the general population. differ4 84 Table 5.1 (Continued) Need for Distinctiveness Need for Affiliation I often pay attention to how people with status behave. affiliate1 I often behave in a manner that makes me fit with people with status. affiliate2 It is important to me that others see me belong to a group with status. affiliate3 It is important to me to belong to a group with status. affiliate4 It is important to me to enhance my image to belong to a group with status. affiliate5 I am interested in status. affiliate6 Acculturation Exposure to marketing activities of Western companies I enjoy watching advertising for Western products on TV. accul1 I enjoy seeing ads for Western products everywhere accul2 I like seeing billboards and advertising signs for Western products. accul3 English language usage/exposure I feel very comfortable speaking in English. accul4 I often speak English with family or friends. accul5 I speak English regularly. accul6 Self- identification with global consumer culture Advertising by brands from Western countries has a strong influence on my shopping choices. accul7 The way that I dress is influenced by the advertising activities of Western companies. accul8 I like to wear Western style clothing accul9 I enjoy dining at Western style restaurants accul10 Global mass media exposure I enjoy watching films from Western countries. accul11 Some of my favorite actors/actresses are from Western countries. accul12 I enjoy listening to music that is from Western countries. accul13 I like Western television. accul14 I like to read about Western celebrities. accul15 assigned Western brand at the assigned the Western retail format, need for distinctiveness, and acculturation (see Table 5.1 and Appendix E). The questionnaire was translated into three local languages (Hindi, Kannada, and Tamil) spoken in the four Indian cities where data were collected (Bangalore-Kannada, Chandigarh- 85 Hindi, Chennai-Tamil, and Delhi-Hindi). The translations were conducted by a marketing research firm employed to collect data. In order to ensure that the translations were accurate, the translated questionnaires were cross-checked with the original English versions by individuals recruited by the researcher, who were fluent in one of the three local language and English. If inconsistencies were found in the translations, they were corrected in all versions of the questionnaire and the corrected questionnaires were then used to collect data. Sampling and Data Collection Procedures Data were collected using a mall- and market-intercept survey conducted by a marketing research firm in four Indian cities (Bangalore, Chandigarh, Chennai, and Delhi). A sample of 407 consumers was recruited to participate in the study. A total of four malls and four markets that carried Western and local brands were used as a location to recruit participants. A survey site was established at the entrance of each mall or market to recruit customers for participation in the survey. Those who volunteered to participate were asked screening questions: (a) whether their age was between 19 and 35 years and (b) whether they lived in an urban area in India. If the volunteers met the screening criteria, they were briefly explained about the purpose of the study. The purpose and confidential statements were also presented in the information letter included as the cover page of the questionnaire. Then, participants were given a questionnaire which is randomly assigned among the eight versions of the questionnaire, and they completed the questionnaire at a table set up at the survey site in the mall or market. Once the participants completed the questionnaire, the administrator collected the questionnaire and thanked the participants. No incentives were provided to the participants. 86 Data Analysis and Results Sample Demographics The sample size used for data analysis was 407 with 246 women and 161 men. The age distribution of respondents revealed that the respondents under the age of 25 years accounted for 61.7% of the total samples. In terms of the educational experience, the respondents with a college degree were the largest group (44%), followed by those with a graduate degree (23.6%), and some college or technical school (20.1%). The sample included a higher proportion of males (60.4%) and a lower proportion of females (39.6%), as compared to the national population statistics which shows the national female to male ratio of more males (51 to 48%) (Ministry of Statistics and Programme Implementation [MOSPI]. n.d.). In terms of the marital status, 71% of the sample was single, followed by married (28%). In regards to the household income, the majority of the respondents had an income greater than Rs. 20,000 (62.7%), followed by those with household income between Rs. 10,001 to 20,000 (22.4%). The sample represented a wide variety of occupation with the largest number of respondents being students (41.3%), followed by professional or technical workers (25.1%) and manager and administrator (10.8%). Most respondents lived in a city (46.4%), followed by metro areas (42.5%) and towns (8.4%). The sample characteristic frequency and percentage statistics are provided in Table 5.2. Measurement Validity and Reliability Check The hypotheses testing was preceded by a preliminary data analysis including CFA and follow-up convergent and discriminant validity check procedures based on the CFA results. Cronbach?s alphas were also calculated to establish the reliability of the scales used in the main study. 87 Table 5.2. Sample characteristics (n = 407) Variable f % Age 19 to 24 252 61.9 25 to 29 109 26.8 30 to 34 46 11.3 Missing Values 0 0 Gender Female 161 39.6 Male 246 60.4 Missing Values 0 0 Education 8th grade or less 2 0.5 12th grade 48 11.8 Some college or technical school 82 20.1 College degree (3 or 4 years) 179 44 Graduate degree 96 23.6 Missing Values 0 0 Marital Status Single 289 71 Married 114 28 Separated 1 .2 Divorced 3 .7 Missing Values 0 0 Monthly Household Income Rs. 25,00 or less 2 .5 Rs. 2,501 to 5,000 15 3.7 Rs. 5 ,001 to 7,500 12 2.9 Rs. 7,501 to 10,000 32 7.9 Rs. 10,001 to 20,000 91 22.4 Above Rs. 20,000 255 62.7 Missing Values 0 0 Occupation Professional or Technical 102 25.1 Manager or Administrator 44 10.8 Sales Worker 16 3.9 Clerical Worker 20 4.9 Crafts Worker 8 2 Machine Operator or Laborer 1 0.2 Farmer, Farm Manager or Farm Laborer 2 0.5 Service Worker or Private Household Worker 4 1 Military 3 0.7 Homemaker 25 6.1 Student 168 41.3 Unable to Work 3 0.7 Other 9 2.2 Missing Values 2 .5 Residence Village 11 2.7 Town 34 8.4 City 189 46.4 Metro 173 42.5 Missing Values 0 0 88 Table 5.2 (Continued) Monthly Expense on Clothing Rs. 500 or less 36 8.8 Rs. 501 to 1,000 101 24.8 Rs. 1,001 to 2,500 122 30 Rs. 2,501 to 5,000 66 16.2 Above Rs. 5,000 66 16.2 Missing Values 0 0 The statistical procedures and criteria used for this preliminary analysis were similar to those used in Phase 2 for the corresponding statistical methods. Provided below is a description of the preliminary data analysis and results for the various scales used in the study including perceived value, subjective norm, perceived behavioral control, acculturation, and need for distinctiveness. Perceived Value Confirmatory factor analysis. Separate CFAs were conducted on the 21-item perceived value scale for Western brands and that for Western retail formats using Analysis of Moment Structures (AMOS) 18 employing the Maximum Likelihood estimation method. CFA was performed using the four-factor model (see Figures 5.1 and 5.2) suggested by the Phase 2 results, to determine if the four-factor solution provides an acceptable fit and to assess the construct validity of the scale. The model fit was first examined by assessing the chi-square statistics (?2brand = 439.642, df = 183, p < .001; ?2retail format = 441.149, df = 183, p < .001). The chi- square statistics indicated an imperfect fit, but considering that this statistic is sensitive to sample size (Hair et al., 2006), RMSEA and incremental fit indices including CFI, NFI, and TLI were considered to be more appropriate fit measures in this study. Incremental fit indices (CFI, NFI, and TLI) with value greater than .90 suggest a good fit (Hu & Bentler, 1992). RMSEA values 89 Figure 5.1. Confirmatory factor analysis model: Perceived value of Western brands less than .05 suggest a superior fit (McCallum et al., 1996), RMSEA values ranging from .05 to .08 suggest a good fit (Hu & Bentler, 1992), and RMSEA value ranging from .08 to .10 suggest a mediocre fit, and RMSEA values greater than .10 suggest a poor fit of the model (McCallum et al., 1996). RMSEA for the four-factor model was smaller than .08 for perceived value for both brand and retail format (RMSEAbrand =.059; RMSEAretail format =.059), suggesting *** p <.001 ?2 = 439.642, df = 183, p < .001 CFI = .928, NFI = .884, TLI = .918 RMSEA = .059 .66*** .76*** .69*** .76 ** * .79*** .82*** .36*** .67*** .78*** .66*** .66*** .72*** .72*** .72*** .61*** .75*** .77*** .73*** .72*** .72*** .64*** .65*** .63*** .70*** .73*** .68*** Functional Value (quality) Emotional Value Social Value Functional Value (price) quality1 quality2 quality3 quality4 quality5 quality6 price2 price3 price4 price5 emotion1 emotion2 emotion3 emotion4 emotion5 emotion6 social1 social2 social3 social4 .49*** price1 Note. Please refer to Table 5.1 for wording of the indicator items. 90 Figure 5.2. Confirmatory factor analysis model: Perceived value of Western retail formats an acceptable fit of the four-factor model (Hu & Bentler, 1992). For the perceived value of retail formats, all the incremental indices (CFIretail format = .942, NFIretail format = .905, TLIretail format = .933) were greater than .90, suggesting a good fit. However, in the case of perceived value of a brand, although the CFI and TLI fit indices were greater than .90 (CFIbrand = .928, TLIbrand = .918), *** p <.001 ?2 = 441.149, df = 183, p < .001 CFI = .942, NFI = .905, TLI = .933 RMSEA = .059 .70*** .78*** .75*** .73 ** * .88*** .78*** .60*** .70*** .75*** .78*** .71*** .82*** .73*** .71*** .72*** .73*** .80*** .73*** .76*** .74*** .73*** .74*** .70*** .71*** .74*** .73 *** Functional Value (quality) Emotional Value Social Value Functional Value (price) quality1 quality2 quality3 quality4 quality5 quality6 price2 price3 price4 price5 emotion1 emotion2 emotion3 emotion4 emotion5 emotion6 social1 social2 social3 social4 .58*** price1 Note. Please refer to Table 5.1 for wording of the indicator items. 91 Figure 5.3. Revised confirmatory factor analysis model: Perceived value of Western brand the NFI was less than .90 (NFIbrand = .884). Thus, standardized estimates of factor loadings were examined to determine the appropriateness of items to their corresponding factors and to determine if there were any problematic items that should be dropped to improve the model fit. Two indicators (price1 and price5) for the functional value (price) dimension had weak Note. Please refer to Table 5.1 for wording of the indicator items. *** p <.001 ?2 = 281.520, df = 146, p < .001 CFI = .959, NFI = .921, TLI = .952 RMSEA = .048 .66*** .78*** .72*** .79 ** * .79*** .82*** .65*** .79*** .64*** .66*** .72*** .72*** .72*** .62*** .75*** .77*** .73*** .72*** .72*** .64*** .65*** .63*** .70*** .73*** .68*** Functional Value (quality) Emotional Value Social Value Functional Value (price) quality1 quality2 quality3 quality4 quality5 quality6 price2 price3 price4 emotion1 emotion2 emotion3 emotion4 emotion5 emotion6 social1 social2 social3 social4 92 Figure 5.4. Revised confirmatory factor analysis model: Perceived value of Western retail formats loadings (< .60) in both the brand and retail format data (see Figures 5.1 and 5.2). Therefore, another CFA was run after deleting these two items. The incremental indices of the revised *** p <.001 ?2 = 329.004, df = 146, p < .001 CFI = .955, NFI = .923, TLI = .948 RMSEA =.056 .70*** .79*** .75*** .75 ** * .88*** .78*** .70*** .75*** .77*** .71*** .73*** .82*** .71*** .71*** .73*** .80*** .73*** .70*** .74*** .73*** .74*** .70*** .71*** .73*** .73 *** Functional Value (quality) Emotional Value Social Value Functional Value (price) quality1 quality2 quality3 quality4 quality5 quality6 price2 price3 price4 emotion1 emotion2 emotion3 emotion4 emotion5 emotion6 social1 social2 social3 social4 Note. Please refer to Table 5.1 for wording of the indicator items. 93 model were greater than .90 and the RMSEA was less than .08 suggesting that the revised models for perceived value of a brand and a retail format demonstrated an acceptable fit (CFIbrand = .959, NFIbrand = .921, TLIbrand = .952 RMSEAbrand = .048; CFI retail format = .955, NFI retail format = .923, TLI retail format = .948, RMSEA retail format = .056) (see Figures 5.3 and 5.4). Therefore, the 19 perceived value items used in the revised CFA model were retained for both brands and retail formats for further analysis. Convergent validity. Convergent validity was assessed by calculating Average Variance Extracted (AVE) scores using the formula provided below by Fornell and Larcker (1981), where ?i is the factor loading of xi on X; Var signifies the variance; ?i indicates the measurement error of xi; and ? denotes a sum: AVE = . ?[ ?i? ] Var(X) . ? [ ?i?]Var(X) +?[Var ( ?i? )] AVE scores greater than .50 indicate convergent validity of the scale items (Bagozzi, 1991). With the exception of the AVE score for the functional value (price) dimension for brands (AVEfunctional value (price) = .493) approaching .50, the AVE score of all perceived value factors for both brand (AVEfunctional value (quality) = .518, AVEemotional value ) = .547, AVEsocial value = .532) and retail format (AVEfunctional value (quality) = .556, AVEfunctional value (price) = .566, AVEemotional value ) = .583, AVEsocial value = .584) exceeded .50 demonstrating the convergent validity of the perceived value scale items. Discriminant validity. Discriminant validity was assessed through two methods. First, factor correlations and their confidence intervals (factor correlations plus and minus 2 x standard errors of the factor correlation) were examined such that none of the confidence intervals contained 1.0 to demonstrate discriminant validity (Hair et al., 2006). Upon the examination of 94 factor correlations, it was found that there was a high correlation (> .60) between the four factors for perceived value of both brand and retail format (see Table 5.3). However, factors having a high correlation can also demonstrate discriminant validity, which can be verified through a more stringent method of examining confidence intervals. Therefore, confidence intervals were examined and it was found that none of the confidence intervals contained 1.0, providing evidence of discriminant validity (Anderson & Gerbing, 1988). Second, chi-square difference tests were conducted between the original CFA model and six additional (constrained) models (for both perceived value of a brand and perceived value of a Table 5.3. Factor pair correlations for perceived value Factor Pair Correlation Coefficient Standard Error Confidence Intervals Brand Functional Value (quality) Functional Value (price) .795 .034 [.727, .863] Functional Value (price) Emotional Value .778 .034 [.710, .846] Emotional Value Social Value .793 .030 [.733, .853] Functional Value (quality) Emotional Value .815 .027 [.761, .869] Functional Value (quality) Social Value .661 .040 [.581, .741] Functional Value (price) Social Value .716 .041 [.634, .798] Retail format Functional Value (quality) Functional Value (price) .755 .033 [.689, .821] Functional Value (price) Emotional Value .795 .030 [.735, .855] Emotional Value Social Value .884 .021 [.842, .926] Functional Value (quality) Emotional Value .783 .027 [.729, .837] Functional Value (quality) Social Value .704 .034 [.636, .772] Functional Value (price) Social Value .746 .035 [.676, .816] 95 Table 5.4. Chi-Square Difference tests for perceived value constructs Model Factors with correlation constrained (? = 1) Chi-Square difference test against base model ?2 df ??2 ?df p Brand Base Model Unconstrained 439.642 183 Model 1 Functional Value (quality) Social Value 617.248 184 177.61 1 < .001 Model 2 Functional Value (quality) Emotional Value 550.228 184 110.59 1 < .001 Model 3 Functional Value (quality) Functional Value (price) 536.826 184 97.184 1 < .001 Model 4 Functional Value (price) Emotional Value 548.032 184 108.39 1 < .001 Model 5 Functional Value (price) Social Value 561.840 184 122.2 1 < .001 Model 6 Emotional Value Social Value 537.125 184 97.483 1 < .001 Retail Format Base Model Unconstrained 441.149 183 Model 1 Functional Value (quality) Social Value 654.332 184 213.183 1 < .001 Model 2 Functional Value (quality) Emotional Value 644.125 184 202.976 1 < .001 Model 3 Functional Value (quality) Functional Value (price) 627.740 184 186.591 1 < .001 Model 4 Functional Value (price) Emotional Value 588.470 184 147.321 1 < .001 Model 5 Functional Value (price) Social Value 574.182 184 133.033 1 < .001 Model 6 Emotional Value Social Value 496.704 184 55.555 1 < .001 retail format) with a factor correlation parameter constrained to be 1.0 (Anderson & Gerbing, 1988), and a significant result (p < .05) would indicate a significantly better fit of the original model, indicating discriminant validity between the correlated factors. All constrained models revealed a significantly poorer fit than the unconstrained model (original CFA model) (see Table 96 5.4). Thus, discriminant validity among the four perceived value factors was confirmed by the chi-square difference tests. Reliability. Cronbach?s alpha coefficients were calculated to examine the reliability of the 19-item perceived value scale. Established standards items with Cronbach?s alpha value greater than .70 were considered reliable (Hair, Anderson, Tatham, & Black, 1998). The perceived value components for both brands (?functional value (quality) = .827, ?functional value (price) = .734, ?emotional value = .866, ?social value =. 798) and retail formats (?functional value (quality) = .866, ?functional value (price) = .786, ?emotional value = .884, ?social value =. 829) exhibited satisfactory reliability with Cronbach?s alphas values greater than .70. Subjective Norm Confirmatory factor analysis. CFA was performed for the four-item one-factor model of subjective norm for both brands and retail formats, which was identified in Pretest 2 (see Figures 5.5 and 5.6). The model fit was first assessed through the chi-square statistics (?2brand = 71.816, df = 2, p < .001; ?2retail format = 17.256, df = 2, p < .001). The chi-square statistics indicated an imperfect fit. Given that chi-square statistic is sensitive to sample size, RMSEA and incremental fit indices including CFI, NFI, and TLI were examined. RMSEA values (RMSEAbrand = .293; RMSEAretail format = .137) were greater than .10, suggesting a poor fit of the model (McCallum et al., 1996). Although the value of CFI was greater than .90 (CFIbrand = .901), NFI and TLI had values lower than .90, suggesting a poor fit of the model for subjective norm towards buying a Western brand (NFIbrand = .899, TLIbrand = .702). On the other hand, the values of incremental indices for a Western retail format (CFIretail format = .974, NFIretail format = .971, TLIretail format = .923) were greater than .90, suggesting a good fit. 97 The RMSEA, NFI, and TLI suggested a poor model fit for subjective norm of buying a Western brand. Kenny, Kaniskan, and McCoach (2011) suggest that researcher should look for the source of specification errors instead of relying on a model fit for models with small degrees of freedom. Therefore, standardized estimates of factor loadings and item wordings were examined to determine the appropriateness of items and to determine if there were any problematic items that should be dropped. The standardized regression coefficients of all items corresponding to subjective norm towards buying a Western brand were greater than .50. Examination of item wordings indicated that the first three items measured motivation of the participant to concede with important others? expectations, but the forth item, ?it is completely false/complete true that many people like me buy this brand (or shop at this type of store)?, captured expected behavior of individuals similar to the participant. However, in TPB Azjen (1991) defined subjective norm as an individual?s motivation to abide by important others? expectations. Therefore, the fourth item was deleted for further analysis. Figure 5.5. Confirmatory factor analysis model: Subjective norms for Western brands *** p <.001 ?2 = 71.816, df = 2, p < .001 CFI = .901, NFI = .899, TLI = .702 RMSEA =.293 .74*** .75*** .74*** .81*** Subjective Norm norm1 norm2 norm3 norm4 Note-Please refer to Table 5.1 for wording of the indicator items. 98 Figure 5.6. Confirmatory factor analysis model: Subjective norms for Western retail formats Reliability. Cronbach?s alpha values were then calculated to assess the reliability of the subjective norm scale. The scale yielded Cronbach?s alpha values greater than .70 (?brand = .839; ?retail format = .824), suggesting good reliability of the scale (Hair et al., 1998). Perceived Behavioral Control Confirmatory factor analysis. The acceptability of the seven-item one-factor model of perceived behavioral control, identified in Pretest 2, was evaluated by conducting CFA for both the brand and retail format data (see Figures 5.7 and 5.8). The model fit was first assessed through the chi-square statistics (?2brand = 13.616, df = 14, p = .479; ?2retail format = 20.901, df = 14, p = .104). The chi-square statistics supported a perfect fit hypothesis for both perceived behavioral control towards a Western brand and for perceived behavioral control towards a Western retail format. RMSEA values (RMSEAbrand = .000; RMSEAretail format = .035) were less than .05, suggesting a superior fit (McCallum et al., 1996). Other incremental fit indices (CFIbrand = 1.000, NFIbrand = .991, TLIbrand = 1.000; CFIretail format = .996, NFIretail format = .987, TLIretail format = .993) had values greater than .95, suggesting a good model fit. *** p <.001 ?2 = 17.256, df = 2, p < .001 CFI = .974, NFI = .971, TLI = .923 RMSEA = .137 .77*** .63** .70*** .84*** Subjective Norm norm1 norm2 norm3 norm4 Note-Please refer to Table 5.1 for wording of the indicator items. 99 Reliability. Cronbach?s alpha values were calculated to assess the reliability of the perceived behavioral control scale. The scale yielded Cronbach?s alpha values greater than .70 (?brand = .888; ?retail format = .882), suggesting that the perceived behavioral control scale was reliable (Hair et al., 1998). Figure 5.7. Confirmatory factor analysis model: Perceived behavioral control towards Western brands Figure 5.8. Confirmatory factor analysis model: Perceived behavioral control towards Western retail formats *** p <.001 ?2 = 13.616, df = 14, p = .479 CFI =1.000, NFI = .991, TLI = 1.000 RMSEA = .000 .41*** .84*** .80*** .78*** Perceived Behavioral Control control2 control3 control4 control5 .80** control6 .77*** control1 .78*** control7 Note-Please refer to Table 5.1 for wording of the indicator items. *** p <.001 ?2 = 20.901, df = 14, p = .104 CFI = .996, NFI = .987, TLI = .993 RMSEA = .035 .38*** .80*** .80*** .84*** Perceived Behavioral Control control2 control3 control4 control5 .79** control6 .80*** control1 .77*** control7 Note-Please refer to Table 5.1 for wording of the indicator items. 100 Need for Distinctiveness Principal components analysis. PCA and CFA conducted in Phase 2 revealed several problems with the original 11-item need for distinctiveness scale, requiring significant revisions to finalize the 10 items used for the main survey. Therefore, the validity of the 10-item need for distinctiveness scale used in the main survey was examined through a combination of PCA and CFA analyses. First, the data were randomly split into two data sets of an equal sample size (n = 210 for each set) so that PCA and CFA could be conducted on separate sets of data. For the first half of the data, PCA with varimax rotation was conducted to examine the underlying structure of the scale (see Table 5.5). The appropriate items and components to retain were assessed using four criteria: (1) Kaiser?s rule of eigenvalue greater than 1.0, (2) the number of large drops in the scree plot, (3) factor loadings of each item greater than .50 on its corresponding factor but below .30 on other factors (Kline, 1998), and (4) the conceptual meaning of the items. Both scree plots and Kaiser?s rule (eigenvalue approaching or greater than 1.0) suggested two underlying dimensions (Need for Affiliation and Need for Differentiation) of the need for distinctiveness scale. Upon examining factor loadings from rotated component matrix and wordings of the items, it was found that all items were loading appropriately on their corresponding components. Although two items for need for differentiation cross-loaded on the need for affiliation component with a loading above .40, these items were retained to avoid reducing the number of items for the need for affiliation as otherwise it would have only two items. Therefore, the 10-item two-factor model was then subjected to a CFA. 101 Table 5.5. Principal component analysis results: Need for distinctiveness Component Loadings Item Need for Affiliation Need for Differentiation It is important for me that others see me belong to a group with status. .790 I often pay attention to how people with status behave. .788 It is important to me to belong to a group with status. .781 It is important to me to enhance my image to belong to a group with status. .774 I often behave in a manner that makes me fit with people with status. .760 I am interested in status. .729 Feeling similar to the general population makes me feel uncomfortable. .851 I do not like people to think that I am a conventional member of the general population. .813 I have a desire to act differently from the general population. .555 .630 I have a desire to differentiate myself from the general population. .473 .546 Eigenvalue 5.724 1.000 Variance explained 57.237 67.236 Confirmatory factor analysis. CFA was performed on the second half of the data to determine with the two-factor, 10-item model of the need for distinctiveness scale. CFA results showed an acceptable fit of this model to the data (see Figure 4.9; ?2 = 60.509, df = 34, p < .01; CFI = .973, NFI = .942, TLI = .965; RMSEA=.06) (MaCallum et al., 1996). Convergent validity. Convergent validity of the ten-item need for distinctiveness scale was then assessed by calculating AVE scores. AVE scores greater than .50 indicate convergent validity of the scale items (Bagozzi, 1991). The AVE score for need for affiliation exceeded .50 for need for affiliation (AVE = .608), but the AVE score for the need for differentiation factor (AVE = .486) was below the threshold of .50. Although it is customary to re-estimate the model 102 Figure 5.9. Confirmatory factor analysis model: Need for distinctiveness without poor measures to improve the convergent validity, this was not done as the AVE score was not substantially lower than .50, and all items had loadings above .60. Discriminant validity. Discriminant validity between the two factors of need for distinctiveness was assessed through two methods. First, the confidence interval (.796, .928) of the factor correlation (? = .862, SE = .033) did not contain 1.0, verifying that the two factors were discriminant (Anderson & Gerbing, 1988). Discriminant validity was also assessed by conducting chi-square difference tests between the original CFA model and the constrained CFA model with a restriction of a perfect factor correlation (? = 1.0) (Anderson & Gerbing, 1988). The constrained model (?2 = 219.822, df = 35, p < .001) revealed a significantly poor fit than the unconstrained model (??2 = 90.336, ?df = 1, p < .001), further verifying discriminant validity. *** p <.001 ?2 = 60.509, df = 34, p = .003 CFI = .973, NFI = .942, TLI = .965 RMSEA = .062 .862*** .81*** .75*** .66*** .65*** .75*** .76*** .81*** .72*** .76*** .75*** Need for Affiliation Need for Differentiation affiliate1 affiliate2 affiliate3 affiliate4 affiliate5 affiliate6 differ1 differ2 differ3 differ4 Note. Please refer to Table 5.1 for wording of the indicator items. 103 Reliability. The Cronbach?s alpha value for both the need for affiliation (? = .895) and need for differentiation (? = .818) were greater than .70 suggesting that scale was reliable (Hair et al., 1998). Acculturation Principal component analysis. Considering that significant revisions were made to the acculturation scale used in Phase 2 to finalize the 15-item acculturation scale employed in the main study, the validity of the scale was again tested using a two-step approach combining PCA and CFA. Two data sets of an equal sample size (n = 210 for each set) were used to conduct PCA and CFA on separate sets of data. First, PCA with varimax rotation was conducted on the first half of the data to examine the underlying factor structure of the acculturation scale. The appropriate items and components to retain were assessed using four criteria: (1) Kaiser?s rule of eigenvalue greater than 1.0, (2) the number of large drops in the scree plot, (3) factor loadings of each item greater than .50 on its corresponding factor but below .30 on other factors (Kline, 1998), and (4) the conceptual meaning of the items. Both scree plots and Kaiser?s rule suggested the existence of two components. However, the original scale was conceptualized in four dimensions, exposure to marketing activities of Western companies, global mass media exposure, self-identification with global consumer culture, and English language usage/exposure. Upon examining the factor loadings, it was found that the items corresponding to global mass media exposure and self-identification with global consumer culture were loading on a single factor (see Table 5.6). 104 Table 5.6. Principal component analysis results: Acculturation Component Loading Item Component 1 Component 2 I like Western television. .805 I enjoy dining at Western style restaurants. .746 I like to read about Western celebrities. .730 I enjoy listening to music that is from Western countries. .717 Some of my favorite actors/actresses are from Western countries. .696 I like to wear Western style clothing. .691 Advertising by brands from Western countries has a strong influence on my shopping choices. .691 I enjoy watching films from Western countries. .580 The way that I dress is influenced by the advertising activities of Western companies. .579 I often speak English with family or friends. .523 .445 I enjoy watching advertising for Western products on TV. .849 I like seeing billboards, and advertising signs for Western products. .822 I enjoy seeing ads for Western products everywhere .730 I feel very comfortable speaking in English. .650 I speak English regularly. .483 .585 Eigenvalue 8.958 1.110 Variance explained 53.720 7.399 These items were all related to exposure to and acceptance of global mass media; therefore, they were considered to address the same construct as a single factor. Because the three items originally conceptualized to address English language usage/exposure cross-loaded on both components resulted from the PCA, the researcher decided to run a three-component solution to examine if English language usage/exposure would be extracted as a third factor (see Table 5.7). The three-component solution revealed that the three items corresponding to English language usage/exposure were loading on a separate component, thereby suggesting a three-component 105 Table 5.7. Principal component analysis results: Acculturation - three component solution Component Loading Items Exposure to Global Mass Media (EGMM) Exposure to marketing activities of Western companies (EMAWC) English language usage (ELU) I like Western television. .762 I like to read about Western celebrities. .709 Some of my favorite actors/actresses are from Western countries. .688 Advertising by brands from Western countries has a strong influence on my shopping choices. .677 The way that I dress is influenced by the advertising activities of Western companies. .677 I enjoy listening to music that is from Western countries. .630 I enjoy dining at Western style restaurants. .602 .531 I like to wear Western style clothing. .589 .473 I enjoy watching films from Western countries. .563 I enjoy watching advertising for Western products on TV. .813 I like seeing billboards, and advertising signs for Western products. .765 I enjoy seeing ads for Western products everywhere .726 I speak English regularly. .707 I feel very comfortable speaking in English. .698 I often speak English with family or friends. .693 Eigenvalue 8.958 1.110 .805 Variance explained 53.720 7.399 5.370 solution was appropriate. Therefore, the three-factor model was subjected to a CFA with the second half of the data. Confirmatory factor analysis. Results from the CFA of the three-factor acculturation measurement model run for the second half of the data revealed most fit indices that were 106 acceptable (see Figure 5.10; RMSEA=.074; CFI = .936, TLI = .923), except for the significant chi-square statistic (?2 = 182.170, df = 87, p < .001) and the NFI (.886) which was lower than .90. This model revealed one item (accul7) with a factor loading that was lower than .50. Therefore, the item was deleted, and a second CFA model was run with the remaining 14 items (see Figure 5.11). The fit of the second model was acceptable (?2 = 132.893, df = 74, p < .001; RMSEA =.063; CFI = .958, NFI = .911, TLI = .948), and thus the 14-item, 2-factor model of acculturation was finalized for further analysis. Figure 5.10. The initial CFA model with 15 acculturation items *** p <.001 ?2 = 182.170, df = 87, p < .001 CFI = .936, NFI = .886, TLI = .923 RMSEA = .074 .72*** .51*** .73*** .80*** .74*** .70*** .74***7 2***.72 .73***7 2***.72 .75***7 2*** .78*** .69*** .74*** .73*** .72*** .78*** .69*** .77*** .80*** .74*** Exposure - marketing of Western companies Exposure to Global Mass Media English language usage accul1 accul2 accul3 accul7 accul15 accul8 accul9 accul10 accul11 accul12 accul13 accul4 accul5 accul6 accul14 Note-Please refer to Table 5.1 for wording of the indicator items. 107 Figure 5.11. The second CFA model with 14 acculturation items Table 5.8. Factor pair correlations for acculturation Factor Pair Correlation Coefficient Standard Error Confidence Intervals Exposure to Global Mass Media English language usage .721 .049 [.623, .819] Exposure -marketing of Western companies English language usage .800 .047 [.706, .894] Exposure -marketing of Western companies Exposure to Global Mass Media .687 .050 [.587, .787] .72*** *** p <.001 ?2 = 132.893, df = 74, p < .001 CFI = .958, NFI = .911, TLI = .948 RMSEA = .063 .73*** .80*** .72*** .69*** .73*** .73*** .75*** .79*** .70*** .74*** .73*** .77*** .67*** .77*** .79*** .74*** Exposure - marketing of Western companies Exposure to Global Mass Media English language usage accul1 accul2 accul3 accul15 accul8 accul9 accul10 accul11 accul12 accul13 accul4 accul5 accul6 accul14 Note-Please refer to Table 5.1 for wording of the indicator items. 108 Table 5.9. Chi-Square Difference tests for Acculturation Model Factors with correlation constrained (? = 1) Chi-Square difference test against base model ?2 df ??2 ?df p Base Model- Unconstrained 132.893 74 Model 1 Exposure -marketing of Western companies English language usage 161.33 75 28.437 1 < .001 Model 2 Exposure to Global Mass Media English language usage 196.082 75 63.189 1 < .001 Model 3 Exposure -marketing of Western companies Exposure to Global Mass Media 222.254 75 89.361 1 < .001 Convergent validity. Convergent validity of the 14-item acculturation scale was verified through the AVE scores that were greater than .50 for all three factors (AVEEGMM = .525; AVEEMAWC = .615; AVEELU = .549). Therefore, the convergent validity of the scale items was established (Bagozzi, 1991). Discriminant validity. No factor correlation confidence intervals among the three acculturation factors contained 1.0 (see Table 5.8), verifying that these factors were discriminant (Anderson & Gerbing, 1988). Further, chi-square difference tests between the original CFA model and each of the three constrained models with each factor correlation restricted to be 1.0 revealed a significantly better fit of the original model than the constrained models (see Table 5.9), also verifying discriminant validity of the three acculturation factors (Anderson & Gerbing, 1988). 109 Reliability. Finally, the Cronbach?s alpha values for the three factors of acculturation were all greater than .70 (?EGMM = .906, ? EMAWC = .828, ?ELU = .995), suggesting that the scale was reliable (Hair et al., 1998). Hypotheses Testing After establishing validity and reliability of the scales, the model fit of the proposed model and the hypotheses (see Table 5.10) were tested using single-group structural equation modeling (SEM) based on the maximum likelihood estimation method. The SEM model (Model 1) specified with eight latent variables (five exogenous and three endogenous) and 31 observed variables (see Figure 5.12). Table 5.10. Hypotheses Hypotheses H1: Among young urban Indian consumers, the greater the acculturation towards Western culture, the greater the perceived value of a) a Western brand and b) a Western retail format. H2: Among young urban Indian consumers, the greater the need for distinctiveness, the greater the perceived value of a) a Western brand and b) a Western retail format. H3: Among young urban Indian consumers, the greater the need for distinctiveness, the greater the acculturation towards Western culture. H4: Among young urban Indian consumers, the greater (a) the perceived value of a Western brand and (b) the perceived value of a Western retail format, the greater the intention to buy the Western brand at the Western retail format. H5: Among young urban Indian consumers, the more positive (a) the subjective norm towards a Western brand and (b) the subject norm towards a Western retail format, the greater the intention to buy the Western brand at the Western retail format. H6: Among young urban Indian consumers, the greater (a) the perceived behavioral control over purchasing a Western brand and (b) the perceived behavioral control over shopping at Western retail format, the greater the intention to buy the Western brand at the Western retail format. 110 In this model (Model 1), the latent variable labeled as Need for Distinctiveness in the model was specified with two indicators which were the average scores of the items measuring each of the two factors (need for differentiation and need for affiliation) of the need for distinctiveness scale. The latent variable labeled as Acculturation was indicated by three observed variables, which were again the average scores of the items from each of the three acculturation factors (exposure to marketing activities of Western companies, exposure to Global mass media, and English language usage/exposure). The latent variables labeled as Perceived Value (Brand) and Perceived Value (Retail Format) were each specified by four indicators, calculated by averaging scores of the items from each of the four perceived value factors, functional value (quality), functional value (price), emotional value, and social value in their corresponding context (brand or retail format). The latent variables Need for Distinctiveness, Acculturation, Perceived value (brand), and Perceived value (retail format) were indicated by summated scores, instead of including items used to measure these variables. This item parceling method was considered necessary because average scores are more stable, and they are simpler to conceptualize, communicate, and interpret in models (Hulin et al., 2001). Particularly, SEM analysis is more stable when the model is parsimonious, which can be achieved by simplifying measurements through summated scores (Hulin et al., 2001). For this reason, several researchers compute summated scores for multi-item constructs typically by averaging the items scores (e.g. Chi & Gursoy, 2009). The remaining latent variables including Perceived Behavioral Control (Brand), Perceived Behavioral Control (Retail Format), Subjective Norm (Brand), and Subjective Norm (Retail Format) were specified with their corresponding measurement models finalized in the aforementioned measurement validity and reliability check procedures. These measurement 111 Figure 5.12. Model 1: Single-group SEM model with standardized regression coefficients **p < .05; *** p <.001 ?2 = 1148.578, df = 444, p < .001 CFI = .918, NFI = .874, TLI = .909, RMSEA = .063 .876*** -.188** -.168** .788*** .492*** -.045 .058 .107 .024 .032 .673*** Perceived behavioral control (brand) Subjective norm (brand) Need for Distinctiveness Acculturation Subjective norm (retail format) Perceived behavioral control (retail Perceived value (brand) Perceived value (retail format) Intention to buy Western brand at Western retail Note. Dashed lines indicate non-significant relationships at ? = .05. 112 Table 5.11. Unstandardized parameter estimates for hypotheses in Model 1 shown in Figure 5.12 *** p < .001 ** p < .05 models included six indicators for each perceived behavioral control latent variable and three indicators for each subjective norm latent variable. The fit of Model 1 was estimated through RMSEA and incremental indices including CFI, NFI, and TLI as well as chi-square estimates. The chi-square test indicated an imperfect fit (?2 = 1148.578, df = 444, p < .001). However, considering that chi-square test is sensitive to sample size (Bentler, 1990), incremental indices and RMSEA value were examined to assess the model fit. With the exception of NFI, fit indices exceeded .90 (CFI =.918, NFI =.874, TLI =.909), and HP Path Est. S.E. t H1a Acculturation ? Perceived value (brand) -.148 .059 -2.507** H1b Acculturation ? Perceived value (retail format) -.153 .063 -2.418** H2a Need for Distinctiveness ? Perceived value (brand) .702 .080 8.793*** H2b Need for Distinctiveness ? Perceived value (retail format) .903 .090 10.052*** H3 Need for Distinctiveness ? Acculturation .762 .070 10.825*** H4a Perceived value (brand) ? Intention to buy a Western brand at a Western retail format .062 .107 .581 H4b Perceived value (retail format) ? Intention to buy a Western brand at a Western retail format .040 .101 .396 H5a Subjective norm (brand) ? Intention to buy a Western brand at a Western retail format .103 .178 .578 H5b Subjective norm (retail format) ? Intention to buy a Western brand at a Western retail format -.047 1.87 -.249 H6a Perceived behavioral control (brand) ? Intention to buy a Western brand at a Western retail format .071 .174 .412 H6b Perceived behavioral control (retail format) ? Intention to buy a Western brand at a Western retail format .621 .182 3.419*** 113 the RMSEA value was lower than .08 (RMSEA =.063), thereby suggesting an acceptable fit of the model. H1 to H3 testing results were first examined through the standardized regression coefficients of their corresponding paths from Model 1 (see Figure 5.12). The regression path coefficients indicated that need for distinctiveness positively influenced the perceived value of a Western brand (? = .788, p < .001) and a Western retail format (? = .876, p < .001), which supports H2. Additionally, need for distinctiveness also positively influenced acculturation (? = .673, p < .001), thus supporting H3. However, acculturation had a significant effect on perceived value of a Western brand (? = -.188, p < .05) and a Western retail format (? = -.168, p < .05), but the negative coefficients indicated that the direction of the significant effect was in the opposite direction, which rejected H1. This unexpected result is most likely due to a suppressor effect. A negative suppressor effect occurs when two independent variables have a positive correlation with the dependent variables and correlate positively with each other, yet one of them receives a negative regression weight (Massen & Bakker, 2001). Even though the suppressor has relevant information common with the dependent variable, this common information is less than the shared information between the suppressor and the other independent variable (Massen & Bakker, 2001). A negative suppressor situation is demonstrated in the current model (see Figure 5.12), where the direct effect of need for distinctiveness on perceived value had a positive sign but the indirect effect via acculturation has a negative sign. Furthermore, in the absence of need for distinctiveness the relationship between acculturation and perceived value of both brands (? = .396, p < .001) and retail formats (? = .467, p < .001) was positive and significant, confirming that the negative regression weight for acculturation-perceived value relationships due to 114 Figure 5.13. Model 2: Revised single-group SEM model with standardized regression coefficients Note. Dashed lines indicate non-significant relationships at ? = .05. *** p <.001 ?2 = 906.329, df = 357, p < .001 CFI = .930, NFI = .891, TLI = .921, RMSEA = .062 .747*** .637*** .484*** -.017 .059 .085 .027 .036 Perceived behavioral control (brand) Subjective norm (brand) Need for Distinctiveness Subjective norm (retail format) Perceived behavioral control (retail) format) Perceived value (brand) Perceived value (retail format) Intention to buy Western brand at Western retail format 115 Table 5.12. Unstandardized parameter estimates for hypotheses in model 2 shown in Figure 5.13 *** p < .001 ** p < .05 suppressor effect. Therefore, to remove the suppressor effect, an additional SEM model (Model 2) was run after eliminating acculturation from Model 1 (see Figure 5.13). Model 2 had a slightly better model fit (CFI =.930, NFI =.891, TLI =.921, RMSEA =.062) than Model 1. The regression coefficients in Model 2 indicated that need for distinctiveness positively influenced perceived value of a Western brand (? = .637, p < .001) and a Western retail format (? = .747, p < .001), thus again supporting H2. As expected, the strengths of these relationships in Model 2 were somewhat weaker than they were in Model 1 where acculturation was increasing the prediction strength of need for distinctiveness. HP Path Est. S.E. t H2a Need for Distinctiveness ? Perceived value (brand) .540 .053 10.193*** H2b Need for Distinctiveness ? Perceived value (retail format) .733 .061 12.075*** H4a Perceived value (brand) ? Intention to buy a Western brand at a Western retail format .069 .103 .666 H4b Perceived value (retail format) ? Intention to buy a Western brand at a Western retail format .045 .097 .467 H5a Subjective norm (brand) ? Intention to buy a Western brand at a Western retail format .084 .111 .754 H5b Subjective norm (retail format) ? Intention to buy a Western brand at a Western retail format -.018 .118 -.152 H6a Perceived behavioral control (brand) ? Intention to buy a Western brand at a Western retail format .072 .164 .439 H6b Perceived behavioral control (retail format) ? Intention to buy a Western brand at a Western retail format .609 .169 3.606*** 116 Using Model 2, the remaining hypotheses (H4-H6) which dealt with the relationships predicted based on the theory of planned behavior (TPB) were tested. H4 predicted that respondents? intention to buy a Western brand at a Western retail format would be positively affected by (a) perceived value of a Western brand and (b) perceived value of a Western retail format. H5 stated that respondents? purchase intention would be positively affected by (a) the subjective norm towards a Western brand and (b) the subject norm towards a Western retail format. Finally, H6 predicted that respondents? purchase intention would be positively affected by (a) the perceived behavioral control over purchasing a Western brand and (b) the perceived behavioral control over shopping at a Western retail format. The results revealed that the regression coefficients corresponding to all hypotheses, except H6(b), were non-significant (see Figure 5.13). Therefore, perceived values of a Western brand (? = .036, p = .505) and a Western format (? = .027, p = .641) and subjective norms towards buying a Western brand (? = .085, p = .451) and shopping at a Western retail format (? = -.017, p = .879) did not predict the intention to buy a Western brand at a Western retail format. Therefore, H4 and H5 were not supported. The regression coefficient showed a significant positive relationship (? = .484, p < .001) between perceived behavioral control over shopping at a Western retail format and intention to buy a Western brand at a Western retail format, but not between perceived behavioral control over buying a Western brand and intention to buy a Western brand at a Western retail format (? = .059, p = .660), thereby supporting H6(b) but not H6(a). Further Analyses Moderating role of perceived behavioral control. Literature suggests that perceived behavioral control exerts both a direct and interactive effects on behavioral intentions (Ajzen, 117 1985; Armitage & Conner, 2001; Terry & O?Leary, 1995). In cases when an intention is likely to be hindered by actual control, perceived behavioral control moderates the relationship between intention and behavior (Armitage & Conner, 2001; Baron & Kenny, 1986; Terry & O?Leary, 1995). Furthermore, Ajzen (1985, 2002) suggests that perceived control is expected to interact with attitude and subjective norm in determining intentions. For example, a study in the context of blood donations found that if participants lack volitional control they are unlikely to form intentions even if attitude and subjective norm are favorable (Giles & Cairns, 1995). In the context of Indian consumers even when they consider Western brands of value, intention to buy a Western brand at a Western retail format can be hindered by lack of perceived behavioral control due to the perceptions of higher price (Kinra, 2006; Maxwell, 2001) and limited availability of Western brands and Western retail formats in India (Mann & Byun, 2011a). Therefore, perceived behavioral control can exert a moderating influence on the intention to buy Western brands at Western retail formats. To further explore the moderating effect of perceived behavioral control for the relationship between perceived values and behavioral intentions, a multiple-group SEM model with maximum likelihood estimation was conducted on a new SEM model (Model 3, see Figure 5.14) after eliminating the perceived behavioral control variables from Model 2 and specifying two groups (the high versus low perceived behavioral control groups). To specify the two perceived control groups, first, participants? average scores of each set of the seven items of perceived behavioral control related to Western brands and the seven items of perceived behavioral control related to Western retail formats were calculated. Then, participants whose perceived control average scores for both brands and retail formats were 4.0 (midpoint on a seven-point scale) or above were classified into the high control group, whereas participants 118 Figure 5.14. Model 3: Multiple-group SEM model with standardized regression coefficients .452*** (.641***) .218** (.514***) 2.992 (.358***) -2.908 (-.017) .080 (.140) .218** (.041) Subjective norm (brand) Need for Distinctiveness Subjective norm (retail format) Perceived value (brand) Perceived value (retail format) Intention to buy Western brand at Western retail format ** p < .01, *** p <.001 ?2 = 617.846, df = 222, p < .001 CFI = .885, NFI = .834, TLI = .859, RMSEA = .066 Notes. Standardized coefficients for the high control group are listed first, and standardized coefficients for the low control group are listed in parentheses. Dashed lines indicate non-significant relationships at ? = .05. 119 Table 5.13. Unstandardized parameter estimates in model 3 shown in Figure 5.14 *** p < .001 ** p < .05 were classified into the low control group if either of the two perceived behavioral control scores was lower than 4.00. This multi-group SEM (Model 3) did not yield a good fit in terms of the chi-square statistics and incremental fit indices (?2 = 617.846, df = 222, p < .001; CFI =.885, NFI =.834, TLI =.859). However, the RMSEA value (.066) suggested an acceptable fit. Because this was not a hypothesized model, but an exploratory model for further analysis, the researcher decided to continue to review the path coefficients to examine the potential moderating effect of perceived behavioral control despite the overall undesirable model fit. For the high control group, perceived value of a Western brand had a significant positive relationship (? = .218, p < .05) with the intention to buy a Western brand at a Western retail format. However, perceived value of a Western retail format did not have a significant relationship (? = .080, p = .317) with the Path Low Control Group High Control Group Est. S.E. t Est. S.E. t Need for Distinctiveness ? Perceived value (brand) .414 .070 5.943*** .113 .044 2.583** Need for Distinctiveness ? Perceived value (retail format) .544 .077 7.102*** .323 .063 5.153*** Perceived value (brand) ? Intention to buy a Western brand at a Western retail format .081 .154 .525 .496 .177 2.803** Perceived value (retail format) ? Intention to buy a Western brand at a Western retail format .265 .154 1.714 .132 .132 1.001 Subjective norm (brand) ? Intention to buy a Western brand at a Western retail format -.019 .168 -.133 -1.842 1.507 -1.222 Subjective norm (retail format) ? Intention to buy a Western brand at a Western retail format .458 .203 2.261** 2.025 1.603 1.263 120 purchase intention. However, for the low control group, perceived values of a Western brand (? = .041, p = .600) and a Western retail format (? = .140, p = .087) did not significantly affect the intention to buy a Western brand at a Western retail format. These findings indicate a potential moderating role of perceived behavioral control for the relationship between Indian consumers? perceived values of a Western brand and purchase intention. For Indian consumers who have a high control over buying a Western brand and/or shopping at a Western retail store because they can afford the price and the store is within a distance they can easily reach, their perceptions of Western brands? value positively led to their purchase intention; however, Indian consumers who do not have control over buying a Western brand at a Western retail format due to their economic status or geographic distance were not likely to form an intention to buy a Western brand at a Western retail format even when they perceived the brand and the retail format to be valuable. Suppressor effect of subjective norms. Further analysis of Model 3 revealed a potential moderating effect of perceived behavioral control for the relationship between subjective norms and purchase intention. The relationship between subjective norms about buying a Western brand (? = -2.908, p = .222) and shopping at a Western retail format (? = 2.992, p = .207) and purchase intention were not significant for the high control group. On the other hand, subjective norm about shopping at a Western retail format had a significant positive influence on purchase intention (? = .358, p < .05) for the low control group, although the influence of subjective norm related to the Western brand remained non-significant (? = -.017, p = .910) for the low control group. These results may indicate that reference groups? opinions regarding shopping at Western 121 Figure 5.15. Model 4: Revised multiple-group SEM model with standardized regression coefficients ** p < .01, *** p <.001 ?2 = 667.178, df = 228, p < .001 CFI = .872, NFI = .820, TLI = .848, RMSEA = .069 Note. Standardized coefficients for high control group are listed first, and standardized coefficients for low control group are listed in parentheses. .163** (.146) .458*** (.644***) .229** (.519***) .067 (.332***) .222** (.034) Subjective norm Need for Distinctiveness Perceived value (brand) Perceived value (retail format) Intention to buy Western brand at Western retail format 122 Table 5.14. Unstandardized parameter estimates in model 4 shown in Figure 5.15 *** p < .001 ** p < .05 retail formats have an influence on purchase intention among Indian consumers who have low control over shopping at Western retail formats, but among those who have a high control over it. One thing from Model 3 results related to the subjective norms-purchase intention relationship that warrants attention is the statistically non-significant but large standardized regression coefficients observed from the high control group. Besides, the two paths from subjective norm about a Western brand (? = -2.908) and from subjective norm about a Western retail format (? = 2.992) were in the opposite directions as indicated by the signs of the coefficients. This unusual result suggested a potential suppressor effect. As suggested earlier, negative suppressor situation can be identified when two independent variables have a positive correlation with the dependent variables and correlate positively with each other, but one of them receives a negative regression weight (Massen & Path Low Control Group High Control Group Est. S.E. t Est. S.E. t Need for Distinctiveness ? Perceived value (brand) .418 .070 5.943*** .120 .045 2.685** Need for Distinctiveness ? Perceived value (retail format) .548 .077 7.122*** .331 .064 5.148*** Perceived value (brand) ? Intention to buy a Western brand at a Western retail format .069 .155 .443 .501 .176 2.844** Perceived value (retail format) ? Intention to buy a Western brand at a Western retail format .276 .154 1.788 .265 .120 2.208** Subjective norm ? Intention to buy a Western brand at a Western retail format .446 .113 3.935*** .045 .049 .928 123 Bakker, 2001). In the current model, a negative suppressor situation is demonstrated as the correlation between subjective norm (brand) and subjective norm (retail format) was substantially high (high control group = .996, as compared to low control group = .796), which resulted in the odd result of large regression weights with the opposite signs for the two subjective norm variables (see Figure 5.14). Therefore, to handle the suppressor situation, an additional multiple-group SEM model (Model 4, see Figure 5.15) was run in which subjective norm towards a Western brand and subjective norm towards a Western retail format were merged as one latent variable with six indicators while the other parts of the model remained the same as Model 3. Although chi square test result (?2 = 667.178, df = 228, p < .001) and incremental indices (CFI =.872, NFI =.820, TLI =.848) suggested a poor mode fit, the RMSEA (.069) suggested an acceptable model fit. Thus, given the explorative nature of this analysis, the researcher further examined the path coefficients of this model despite the overall undesirable model fit. Model 4 revealed that for the high control group, perceived values of a Western brand (? = .222, p < .05) and a Western retail format (? = .163, p < .05) significantly influenced intention to buy the Western brand at the Western retail format, whereas subjective norm has no influence on purchase intention (? = .067, p = .353). In contrast, for the low control group, subjective norm had a significant positive influence (? = .332, p < .001) on purchase intention, whereas perceived values of a Western brand (? = .034, p = .657) and a Western retail format (? = .146, p = .074) did not influence purchase intention. 124 CHAPTER 6: DISCUSSION AND CONCLUSIONS This chapter summarizes findings from the present study and discusses them in light of the previous literature and the proposed model of predictors of young urban Indian consumers? intention to buy a Western brands at a Western retail format. The theoretical and managerial implications and the limitations of this study are also discussed, followed by suggestions for future research. Summary of Findings The findings of this study indicate that young, urban Indian consumers? need for distinctiveness promotes their acculturation towards Western culture. Furthermore, when the entire sample was considered together, perceived behavioral control over shopping at a Western retail format significantly predicted purchase intentions, but neither perceived values (of a Western brand or the Western retail format) nor subjective norms (about the brand or the retail format) appear to influence purchase intentions for a Western brand at a Western retail format. However, when the two groups of Indian consumers with high versus low perceived behavioral control were considered separately, an interesting phenomenon emerged such that purchase intention of the high control group was influenced by their perceived value of a Western brand and a Western retail format, whereas purchase intention of the low control group was influenced by their subjective norm based on what they think other important people in their lives think about buying a Western brand and shopping at a Western retail format. 125 Literature suggests that Western brands are perceived to be of higher price among Indian consumers (Kinra, 2006; Maxwell, 2001). Additionally, availability of Western brands and Western retail formats in India is growing but still limited due to government regulations (Mann & Byun, 2011a). Therefore, lack of volitional control appears to be a strong factor moderating the relationship between perceived value and purchase intention and that between subjective norm and purchase intention. Discussion Need for Distinctiveness In this study, need for distinctiveness was further developed in the context of status- seeking behavior to examine consumers? dual needs to associate with members of an ideal social (or status) group and to differentiate from members of a less-deal social (or status) group. Branding literature suggests that consumers often choose brands to associate or dissociate with a typical brand user to define and create their own self-concepts (Escalas & Bettman, 2003; Han, Nunes, & Dr?ze, 2010). Escalas and Bettman (2003) found that self-enhancement needs lead consumers to choose brands associated with favorable aspirational groups and avoidance of brands associated with unfavorable prototypical user. Han, Nunes, and Dr?ze (2010) also found that consumers? desire to associate or dissociate with members of their own group or other groups is reflected in their preference for conspicuously or inconspicuously branded luxury goods. The results of the current study corroborate these findings by supporting the hypothesis that Indian consumers? need for distinctiveness enhances the perceived value of brands and retail formats of a Western origin. In other words, Indian consumers? need to associate with groups of status and to dissociate with the general population translates into value perceptions of brands 126 and retail formats of a Western origin that personify desirable Western culture and lifestyles. Therefore, this study provides support to the idea that among young, urban Indian consumers, Western culture is an ideal reference group and that these consumers may use the image associated with brands of a Western origin to enhance and signal their own status. Acculturation With increased exposure to Western culture, through media and marketing activities of Western companies, Indian consumers are acculturating to Western culture, wherein they are adapting towards a hybrid mix of traditional shopping values and consumerism of the West (Bijapurkar, 2008). This study hypothesized that as young, urban Indian consumers acculturate to Western culture, they may perceive brands and retail formats of a Western origin to be of high value due to desirable images portrayed of the West in the media. The results of this study did not support the hypothesis due to a suppressor effect, potentially stemming from a conceptual overlap between need for distinctiveness and acculturation. Even though the hypothesis was not supported in the model, positive and significant bivariate correlations between acculturation and both perceived values of a Western brand and Western retail format, suggest that acculturation to Western culture is positively linked perceived values of Western brands and retail formats. This finding corroborates existing acculturation literature that suggests that acculturation affects consumption patterns such as buying well-known brands (Lee, 1993), brand?s country-of-origin perceptions (Parameswaran & Pisharodi, 2002), differences in importance rating of different product attributes (Faber, O?Guinn & McCarty, 1987; Lee, 1993), and purchase decisions (Kang & Kim, 1998). However, existing studies related to acculturation have examined acculturation process within the narrow context of immigration wherein acculturation occurred through first- 127 hand contact but not in a broader perspective where culture impacts consumers around the world through media and globalization (Cleveland & Laroche, 2006). Thus, there is a need to address broader perspective of acculturation occurring through technology and media (Sam, 2006). Accordingly, the present study examined acculturation wherein acculturation occurred through second-hand contact such as media and marketing activities of Western companies instead of direct first-hand contact via immigration. Therefore, this study extends the acculturation literature by validating that acculturation occurring among Indian consumers? through second- hand contact with Western culture affects value perceptions of brands and retail formats originating from the West. Moreover, the results also support the idea that Western brands and retail formats may be used as vehicles for a cultural change by consumers in emerging nations such as India. Need for Distinctiveness and Acculturation Consumers from emerging nations prefer brands from the West due to social desirability and to enhance status (Batra et al., 2000; Lee & Tai, 2006). As suggested earlier, the findings of the current study lend support to this argument such that Indian consumers? need for distinctiveness positively influences the perceived value of brands and retail formats of a Western origin. Furthermore, a positive relationship was found between Indian consumers? need for distinctiveness and their level of acculturation. Namely, the drive to associate with members of an ideal social (or status) group was an antecedent to the inclination to acculturate to the Western culture. Therefore, the need for distinctiveness among consumers in emerging nations not only translates into greater value perception of Western brands and retail formats but also induces changes in their cultural patterns wherein consumers? assimilate Western culture and 128 lifestyles through activities, such as watching Western movies and television, listening to Western music, dining at Western restaurants, and so on. Theory of Planned Behavior TPB, an extension of TRA, has received considerable empirical applications and support for its ability to predict behavioral intentions on account of inclusion of perceived behavioral control (Giles & Cairns, 1995). The results of the present study also support that perceived behavioral control of young Indian consumers has a significant impact on behavioral intentions to buy brands of Western origin at Western retail formats. However, no support was found for the links between subjective norm and purchase intention and between perceived value and purchase intention. Subsequently, further analyses revealed that when participants lacked control over buying Western brands and shopping at Western retail formats, they were unlikely to form a strong behavioral intention even if they perceived Western brands and retail formats to be of high value. These results were consistent with the results of a previous study related to blood donations, wherein it was found that perceived behavioral control has a strong link with behavioral control, such that if participants lack volitional control, they are unlikely to form intentions even if attitude is favorable (Giles & Cairns, 1995). Therefore, the present study provides an empirical support to the idea that perceived behavioral control can act as a strong moderator for the TRA model (Pomazal & Jaccard, 1976). Moreover, further analyses revealed that the relationship between subjective norm and purchase intention differed between Indian consumers with low and high perceived control over buying a Western brand and shopping at a Western retail format. For the high control individuals, perceived value was a significant predictor of a purchase intention, while for the low control 129 individuals, subjective norm was a significant predictor of the intention. Therefore, it can be concluded that perceived value of the brand, not subjective norm, predict the intention to buy a Western brand for young Indian consumers who have control over buying Western brands when considering factors such as general perceptions of control and time to shop, availability and affordability of Western brands and retail formats. On the other hand, favorability of subjective norm predicts the intention to buy Western brands at Western retail formats and not perceived value, for those Indian consumers who have low or no control over buying Western brands. Therefore, consumers who lack the means to buy Western brands at Western retail formats (and thus have low perceived control) are not likely to purchase Western brands at Western retail formats even if they perceive high value of it. Rather, they are likely to purchase Western brands at Western retail formats only when they are under a great normative pressure that favors social signals via adoption of Western brands. On the contrary, when consumers? have high perceived control they form intentions to buy Western brands at Western retail formats without regard to subjective norms. A possible explanation for the same is that among Indian consumers?, in addition to reflecting environmental and personal constraints perceived control reflects the level of independence (in their ability to afford and travel to buy what they like or consider to be of value), such that greater independence lends them freedom from social pressure or concern for normative expectations. Implications Theoretical Implications This study provides a number of theoretical implications. Considering significant economic, political, and social differences across countries, consumer behavior in emerging 130 Eastern countries can be significantly different from that of developed Western countries. TPB has been extensively applied in previous studies, more often in the context of Western countries. Thus, the first theoretical contribution of this study is to test the applicability of TPB in explaining purchase intentions towards Western brands and Western retail formats in an emerging Eastern country, India. This study proposes and validates measurements of TPB constructs such as perceived behavioral control and subjective norm in the context of brand consumption in an emerging economy. In doing so, this study makes methodological contribution to the TPB literature. Moreover, findings of this study provide empirical supports to the idea that perceived behavioral control has an important impact on individuals? behavioral intention and that it can act as a moderator for the relationships between the predictor variables - attitude towards behavior and subjective norm -- and the criterion variable, behavioral intention. Second, much research on acculturation has examined an acculturation process that occurs through direct contact of immigrants in Western countries (e.g., acculturation towards Western culture among Indians immigrated to the West) (Khairullah & Khairullah, 1999; Rajagopalan & Heitmeyer, 2005). According to the classical definition of acculturation by Redfield, Linton, and Herskovits (1936), continuous first-hand contact between two cultures is a prerequisite of acculturation (Sam, 2006). However, with advancements in technology and media second-hand or indirect contact has become almost as real as continuous first-hand contact (Sam, 2006). Particularly, globalization and increase in cross-national marketing and advertising has increased the level of interaction between cultures tremendously (Cleveland & Laroche, 2006). Consequently, it is no longer necessary to travel and immigrate to another country to immerse in a foreign culture. For this reason, Lee (1993) and O?Guinn, Lee, and Faber (1986) suggested incorporating mass-mediated socialization as an indirect path of acculturation. Therefore, in this 131 study, acculturation process occurring through second-hand contact via technology and media among Indian consumers? was examined. By doing so, the study extends the applicability of the construct of acculturation to explain cultural shifts via indirect interaction between two cultures facilitated by technology and media. Further implication of this study in regards to acculturation literature is that need for distinctiveness can be a potential antecedent of young Indian consumers? acculturation to Western culture. This finding implies that due to the significant differences between the economic prosperity and standard of living between the developing and developed societies, there is an admiration for Western lifestyles among consumers in developing countries, which then translates into assimilation of the Western ways. Further, addressing the limitation of existing acculturation scales focusing on acculturation through direct-contact with another culture, this study refined and validated an acculturation scale that can be used for measuring acculturation occurring through second-hand contact. Finally, the present research makes a theoretical contribution by developing the need for distinctiveness construct in the context of status-seeking behavior, developing its measurement, and testing its construct validity as well as predictive validity in explaining consumption of Western brands and retail formats in the context of an Eastern emerging economy, where brands from the West reflect high status. Therefore, by developing this construct and measurement, this study extends the literature related to status consumption. Need for distinctiveness also explains the desirability of scarce products, especially luxury products or product categories that signal status. As suggested by Burns and Brady (1992), consumption of innovative and scarce products cannot be solely explained by need for uniqueness. Considering that interpersonal need for uniqueness varies among cultures, it applies more in the context of developed societies and to a lesser extent to developing societies (Burns & Brady, 1992). Therefore, the construct of need for 132 distinctiveness developed in the current study provides a tool with which to explain consumption of brands that are perceived as new, expensive, and scarce particularly in the context of developing societies. Managerial Implications With a booming economy, growing middle class, and rising disposable incomes, India holds a great market potential. Even though it is the fourth largest economy, it ranks a mere 127th in its per capita GDP; thereby the demand structure in India is very different from that in developed Western countries. Due to the unique characteristics of the Indian market, Western retailers are still testing the waters in terms what their strategy should be (Bijapurkar, 2008). To this end, this study provides several managerial implications for Western retailers seeking to enter the Indian market. The findings of this study suggest that young Indian consumers realize their need for distinctiveness by forming associations with brands originating from the West. Therefore, highlighting a high status image can enhance the perceived value of Western brands and retail formats among young Indian consumers. Additionally, findings from this study suggest that as Indian consumers? acculturate to Western lifestyles, they perceive Western brands to be of greater value. Therefore, marketing managers can leverage their Western connection by developing cues that identify their brands with the prosperity and success of the West. Moreover, they can develop a distinctive image of their brands by advertising their brand as an admired status symbol originating from the West (Mann & Byun, 2011b). This study revealed significant behavioral control issues associated with purchasing Western brands at Western retail formats. Due to the general perceptions of higher price and limited availability of Western brands and Western retail formats in India, there are unmet 133 demands and market opportunities for Western retailers which can be addressed through diverse locational and pricing strategies. Accordingly, Western retailers can focus on extending their brands to lower-priced lines and increasing the penetration of their brands. Shopping malls and specialty stores can be used as potential outlets since they have highest penetration in the organized (or westernized) retail sectors in India (Mann & Byun, 2011a). Limitations and Recommendations for Future research This study is not without limitations. First, even though a pretest was conducted to refine the measurements used in this study there were several measurement issues. Given the suppressor effect there was a potential discriminant validity issue with subjective norms for Western brands and Western retail formats. Researchers have suggested that subjective norm component of TPB is inadequate, lack of sound measurements being one of its weaknesses, and requires further empirical investigation (Armitage & Conner, 2011). Additionally, this study included two perceived behavioral control constructs to measure perceived behavioral control towards Western brand and perceived behavioral control towards Western retail format separately. However, only perceived behavioral control towards Western retail format had a significant effect on purchase intention, which suggests a possibility of suppressor effect such that effect perceived behavioral control towards Western brands was assimilated by the effect of and perceived behavioral control towards Western retail formats. Therefore, more investigation is warranted to examine the dimensionality of the two subjective norms and the two perceived behavioral control used in this study. Further, only one item was used to measure purchase intentions. The measurement validity of purchase intention construct could have been improved by using a multiple measure. In addition, according to the CFA results, acculturation and need 134 for distinctiveness scales were valid and reliable. However, given the suppressor effect there was significant shared information between the two variables (Massen & Bakker, 2001). Therefore, the measurements for both constructs should be refined further. Finally, the AVE scores for need for differentiation dimension of the need for distinctiveness scale and functional value (price) dimension of the perceived value scale were below .50. Therefore, the findings should be interpreted with caution and future research needs to continue to refine the scales. Second, as part of additional analysis, several SEM analyses were conducted to examine the moderating effect of perceived behavioral control on behavioral intentions. Even though, the results revealed that perceived behavioral control moderates a person?s behavioral intention, several fit indices revealed model fit issues. Therefore, caution should be exercised in drawing conclusions. Nevertheless, literature suggests a potential moderating role of perceived behavioral control on attitude, norms, and intentions (Ajzen, 1985, 2001; Giles & Cairns, 1995). Therefore, further research can investigate the interaction effect of perceived behavioral control in the TPB model. Third, the context of the current study was specific to a product category of apparel; therefore, the ability to generalize findings to other contexts is limited. Future research could improve generalizability of this study?s findings by examining different products with varying level of conspicuousness such as automobiles, detergents, electronic products, home appliances and so on. The findings of this study suggest that young, urban Indian consumers associate Western brands with a high status Western image. At the same time there are control issues such as scarcity and perceptions of expensiveness which dissuade consumers to form purchase intentions towards brands and retail formats from the West. Therefore, a question for future research might 135 be how Western retailers can balance a marketing strategy such that their brands appear within reach in terms of expensiveness and availability, without losing their value as a status signal. Future research could test the reliability of need for distinctiveness by examining it with a different sample. 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Journal of Marketing, 52(3), 2-22. 148 APPENDIX A INFORMATION PAGE: PHASE 1 149 Auburn University College of Human Sciences Department of Consumer Affairs 308 Spidle Hall Auburn, AL 36849-5601 United States (334)844-4084 INFORMATION LETTER for a Research Study entitled: ?Indian Consumers? Brand and Store Format Choice? You are invited to participate in a research study to examine Indian consumers brand and store format choice. The study is being conducted by Manveer Kaur Mann, Ph.D. student, under the direction of Dr. Wi-Suk Kwon, Associate Professor, and Dr. Sang-Eun Byun, Assistant Professor in the Department of Consumer Affairs, Auburn University, USA. You are selected as a potential participant because you are aged between 19 to 35 years old and you are currently living in an urban area in India. If you decide to participate in this research, you will be asked to complete a questionnaire. Your total time commitment will be approximately 20 minutes. There are no foreseen risks associated with participating in this study. Although there are no direct benefits of participating in this study, findings from this study are hoped to increase understanding of Indian consumers? brand and retail format choice. Your participation is completely voluntary. If you choose to withdraw in the middle of the survey, you can stop filling out the questionnaire. Your decision about whether or not to participate or to stop participating will not jeopardize your future relations with the Department of Consumer Affairs, Auburn University. Once you have submitted anonymous data, it cannot be withdrawn due to it being unidentifiable. Any data obtained in connection with this study will remain anonymous. Information collected through your participation may be presented at professional meetings and published in professional journals. If you have questions about this study, please ask them now or contact Manveer Kaur Mann by email, mkm0015@auburn.edu or telephone, 1-706-453-6589. If you have questions about your rights as a research participant, you may contact the Auburn University Office of Human Subjects Research or the Institutional Review Board by phone (334)- 844-5966 or e-mail at hsubjec@auburn.edu or IRBChair@auburn.edu. HAVING READ THE INFORMATION PROVIDED, YOU MUST DECIDE IF YOU WANT TO PARTICIPATE IN THIS RESEARCH PROJECT. IF YOU DECIDE TO PARTICIPATE, PLEASE FILL OUT THE QUESTIONNAIRE. The Auburn University Institutional Review Board has approved this document for use from September 30, 2011 to September 29, 2012. Protocol #11-298 EX 1109. 150 APPENDIX B INFORMATION PAGE: PHASE 2 AND MAIN STUDY 151 Auburn University College of Human Sciences Department of Consumer Affairs 308 Spidle Hall Auburn, AL 36849-5601 United States (334)844-4084 INFORMATION LETTER for a Research Study entitled: ?Indian Consumers? Brand and Store Format Choice? You are invited to participate in a research study to examine Indian consumers? brand and store format choice. The study is being conducted by Manveer Kaur Mann, Ph.D. student, under the direction of Dr. Wi-Suk Kwon, Associate Professor, and Dr. Sang-Eun Byun, Assistant Professor in the Department of Consumer Affairs, Auburn University, USA. You are selected as a potential participant because you are aged between 19 to 35 years old and you are currently living in an urban area in India. If you decide to participate in this research, you will be asked to complete a questionnaire. Your total time commitment will be approximately 20 minutes. There are no foreseen risks associated with participating in this study. Although there are no direct benefits of participating in this study, findings from this study are hoped to increase understanding of Indian consumers? brand and retail format choice. Your participation is completely voluntary. If you choose to withdraw in the middle of the survey, you can stop filling out the questionnaire. Your decision about whether or not to participate or to stop participating will not jeopardize your future relations with the Department of Consumer Affairs, Auburn University. Once you have submitted anonymous data, it cannot be withdrawn due to it being unidentifiable. Any data obtained in connection with this study will remain anonymous. Information collected through your participation may be presented at professional meetings and published in professional journals. If you have questions about this study, please ask them now or contact Manveer Kaur Mann by email, mkm0015@auburn.edu or telephone, 1-706-453-6589. If you have questions about your rights as a research participant, you may contact the Auburn University Office of Human Subjects Research or the Institutional Review Board by phone (334)- 844-5966 or e-mail at hsubjec@auburn.edu or IRBChair@auburn.edu. HAVING READ THE INFORMATION PROVIDED, YOU MUST DECIDE IF YOU WANT TO PARTICIPATE IN THIS RESEARCH PROJECT. IF YOU DECIDE TO PARTICIPATE, PLEASE FILL OUT THE QUESTIONNAIRE. "The Auburn University Institutional Review Board has approved this document for use from September 30, 2011 to September 29, 2012. Protocol #11-298 EX 1109." 152 APPENDIX C QUESTIONNAIRE: PHASE 1 (PRETEST 1) 153 SECTION 1 DIRECTION: In the following space, please list all names of apparel brands that you know (you have seen or heard of). DIRECTION: In the following space, please list type of stores that carry the brands listed above. SECTION 2 DIRECTION: Provided below are a set of questions corresponding to different types of stores. For each question, please select a number by circling it to indicate your response. SPECIALTY STORE A modern store that only sells apparel and/or footwear Very unfamiliar Very familiar How familiar are you with Specialty Store? 1 2 3 4 5 6 7 DEPARTMENT STORE A large modern store that is divided into departments selling many kinds of goods including clothing, footwear, accessories, perfumes, etc. How familiar are you with Department Store? 1 2 3 4 5 6 7 154 SHOPPING MALL A large enclosed shopping center with many stores, food court, and/or movie theatre How familiar are you with Shopping Mall? 1 2 3 4 5 6 7 HYPERMAKET A large supermarket carrying wide range of goods including groceries, household goods, and clothing. How familiar are you with hypermarket? 1 2 3 4 5 6 7 DIRECTION: Provided below are a set of statements and questions corresponding to a list of brands. For each statement or question, please select a number by circling it to indicate your level of agreement with each of the statements. BRAND: Lee Very unfamiliar Very familiar How familiar are you with Lee? 1 2 3 4 5 6 7 Very Unlikely Very Likely Lee is of Western (American/European) origin. 1 2 3 4 5 6 7 Lee is available in a specialty store. 1 2 3 4 5 6 7 Lee is available in a shopping mall. 1 2 3 4 5 6 7 Lee is available in a hypermarket. 1 2 3 4 5 6 7 BRAND: Levis Very unfamiliar Very familiar How familiar are you with Levis? 1 2 3 4 5 6 7 Very Unlikely Very Likely Levis is of Western (American/European) origin. 1 2 3 4 5 6 7 Levis is available in a specialty store. 1 2 3 4 5 6 7 Levis is available in a shopping mall. 1 2 3 4 5 6 7 Levis is available in a hypermarket. 1 2 3 4 5 6 7 BRAND: Marks and Spencer Very unfamiliar Very familiar How familiar are you with Marks and Spencer? 1 2 3 4 5 6 7 155 Very Unlikely Very Likely Marks and Spencer is of Western (American/European) origin. 1 2 3 4 5 6 7 Marks and Spencer is available in a specialty store. 1 2 3 4 5 6 7 Marks and Spencer is available in a shopping mall. 1 2 3 4 5 6 7 Marks and Spencer is available in a hypermarket. 1 2 3 4 5 6 7 BRAND: Diesel Very unfamiliar Very familiar How familiar are you with Diesel? 1 2 3 4 5 6 7 Very Unlikely Very Likely Diesel is of Western (American/European) origin. 1 2 3 4 5 6 7 Diesel is available in a specialty store. 1 2 3 4 5 6 7 Diesel is available in a shopping mall. 1 2 3 4 5 6 7 Diesel is available in a hypermarket. 1 2 3 4 5 6 7 BRAND: Wrangler Very unfamiliar Very familiar How familiar are you with Wrangler? 1 2 3 4 5 6 7 Very Unlikely Very Likely Wrangler is of Western (American/European) origin. 1 2 3 4 5 6 7 Wrangler is available in a specialty store. 1 2 3 4 5 6 7 Wrangler is available in a shopping mall. 1 2 3 4 5 6 7 Wrangler is available in a hypermarket. 1 2 3 4 5 6 7 BRAND: Pepe Jeans Very unfamiliar Very familiar How familiar are you with Pepe Jeans? 1 2 3 4 5 6 7 Very Unlikely Very Likely 156 Pepe Jeans is of Western (American/European) origin. 1 2 3 4 5 6 7 Pepe Jeans is available in a specialty store. 1 2 3 4 5 6 7 Pepe Jeans is available in a shopping mall. 1 2 3 4 5 6 7 Pepe Jeans is available in a hypermarket. 1 2 3 4 5 6 7 BRAND: Lee Cooper Very unfamiliar Very familiar How familiar are you with Lee Cooper? 1 2 3 4 5 6 7 Very Unlikely Very Likely Lee Cooper is of Western (American/European) origin. 1 2 3 4 5 6 7 Lee Cooper is available in a specialty store. 1 2 3 4 5 6 7 Lee Cooper is available in a shopping mall. 1 2 3 4 5 6 7 Lee Cooper is available in a hypermarket. 1 2 3 4 5 6 7 BRAND: Espirit Very unfamiliar Very familiar How familiar are you with Espirit? 1 2 3 4 5 6 7 Very Unlikely Very Likely Espirit is of Western (American/European) origin. 1 2 3 4 5 6 7 Espirit is available in a specialty store. 1 2 3 4 5 6 7 Espirit is available in a shopping mall. 1 2 3 4 5 6 7 Espirit is available in a hypermarket. 1 2 3 4 5 6 7 BRAND: Pantloons Very unfamiliar Very familiar How familiar are you with Pantloons? 1 2 3 4 5 6 7 Very Unlikely Very Likely Pantloons is of Western (American/European) origin. 1 2 3 4 5 6 7 Pantloons is available in a specialty store. 1 2 3 4 5 6 7 Pantloons is available in a shopping mall. 1 2 3 4 5 6 7 157 Pantloons is available in a hypermarket. 1 2 3 4 5 6 7 BRAND: Guess Very unfamiliar Very familiar How familiar are you with Guess? 1 2 3 4 5 6 7 Very Unlikely Very Likely Guess is of Western (American/European) origin. 1 2 3 4 5 6 7 Guess is available in a specialty store. 1 2 3 4 5 6 7 Guess is available in a shopping mall. 1 2 3 4 5 6 7 Guess is available in a hypermarket. 1 2 3 4 5 6 7 BRAND: Nautica Very unfamiliar Very familiar How familiar are you with Nautica? 1 2 3 4 5 6 7 Very Unlikely Very Likely Nautica is of Western (American/European) origin. 1 2 3 4 5 6 7 Nautica is available in a specialty store. 1 2 3 4 5 6 7 Nautica is available in a shopping mall. 1 2 3 4 5 6 7 Nautica is available in a hypermarket. 1 2 3 4 5 6 7 BRAND: Tommy Hilfiger Very unfamiliar Very familiar How familiar are you with Tommy Hilfiger? 1 2 3 4 5 6 7 Very Unlikely Very Likely Tommy Hilfiger is of Western (American/European) origin. 1 2 3 4 5 6 7 Tommy Hilfiger is available in a specialty store. 1 2 3 4 5 6 7 Tommy Hilfiger is available in a shopping mall. 1 2 3 4 5 6 7 Tommy Hilfiger is available in a hypermarket. 1 2 3 4 5 6 7 BRAND: United Colors of Benetton 158 Very unfamiliar Very familiar How familiar are you with United Colors of Benetton? 1 2 3 4 5 6 7 Very Unlikely Very Likely United Colors of Benetton is of Western (American/European) origin. 1 2 3 4 5 6 7 United Colors of Benetton is available in a specialty store. 1 2 3 4 5 6 7 United Colors of Benetton is available in a shopping mall. 1 2 3 4 5 6 7 United Colors of Benetton is available in a hypermarket. 1 2 3 4 5 6 7 BRAND: Lacoste Very unfamiliar Very familiar How familiar are you with Lacoste? 1 2 3 4 5 6 7 Very Unlikely Very Likely Lacoste is of Western (American/European) origin. 1 2 3 4 5 6 7 Lacoste is available in a specialty store. 1 2 3 4 5 6 7 Lacoste is available in a shopping mall. 1 2 3 4 5 6 7 Lacoste is available in a hypermarket. 1 2 3 4 5 6 7 BRAND: Wills Lifestyle Very unfamiliar Very familiar How familiar are you with Wills Lifestyle? 1 2 3 4 5 6 7 Very Unlikely Very Likely Wills Lifestyle is of Western (American/European) origin. 1 2 3 4 5 6 7 Wills Lifestyle is available in a specialty store. 1 2 3 4 5 6 7 Wills Lifestyle is available in a shopping mall. 1 2 3 4 5 6 7 Wills Lifestyle is available in a hypermarket. 1 2 3 4 5 6 7 BRAND: Madame Very unfamiliar Very familiar How familiar are you with Madame? 1 2 3 4 5 6 7 Very Unlikely Very Likely 159 Madame is of Western (American/European) origin. 1 2 3 4 5 6 7 Madame is available in a specialty store. 1 2 3 4 5 6 7 Madame is available in a shopping mall. 1 2 3 4 5 6 7 Madame is available in a hypermarket. 1 2 3 4 5 6 7 BRAND: Puma Very unfamiliar Very familiar How familiar are you with Puma? 1 2 3 4 5 6 7 Very Unlikely Very Likely Puma is of Western (American/European) origin. 1 2 3 4 5 6 7 Puma is available in a specialty store. 1 2 3 4 5 6 7 Puma is available in a shopping mall. 1 2 3 4 5 6 7 Puma is available in a hypermarket. 1 2 3 4 5 6 7 BRAND: Jazz Co. Very unfamiliar Very familiar How familiar are you with Jazz Co.? 1 2 3 4 5 6 7 Very Unlikely Very Likely Jazz Co. is of Western (American/European) origin. 1 2 3 4 5 6 7 Jazz Co. is available in a specialty store. 1 2 3 4 5 6 7 Jazz Co. is available in a shopping mall. 1 2 3 4 5 6 7 Jazz Co. is available in a hypermarket. 1 2 3 4 5 6 7 BRAND: Nike Very unfamiliar Very familiar How familiar are you with Nike? 1 2 3 4 5 6 7 Very Unlikely Very Likely Nike is of Western (American/European) origin. 1 2 3 4 5 6 7 Nike is available in a specialty store. 1 2 3 4 5 6 7 Nike is available in a shopping mall. 1 2 3 4 5 6 7 Nike is available in a hypermarket. 1 2 3 4 5 6 7 BRAND: Adidas Very unfamiliar Very familiar How familiar are you with Adidas? 1 2 3 4 5 6 7 160 Very Unlikely Very Likely Adidas is of Western (American/European) origin. 1 2 3 4 5 6 7 Adidas is available in a specialty store. 1 2 3 4 5 6 7 Adidas is available in a shopping mall. 1 2 3 4 5 6 7 Adidas is available in a hypermarket. 1 2 3 4 5 6 7 BRAND: Reebok Very unfamiliar Very familiar How familiar are you with Reebok? 1 2 3 4 5 6 7 Very Unlikely Very Likely Reebok is of Western (American/European) origin. 1 2 3 4 5 6 7 Reebok is available in a specialty store. 1 2 3 4 5 6 7 Reebok is available in a shopping mall. 1 2 3 4 5 6 7 Reebok is available in a hypermarket. 1 2 3 4 5 6 7 BRAND: Calvin Klein Very unfamiliar Very familiar How familiar are you with Calvin Klein? 1 2 3 4 5 6 7 Very Unlikely Very Likely Calvin Klein is of Western (American/European) origin. 1 2 3 4 5 6 7 Calvin Klein is available in a specialty store. 1 2 3 4 5 6 7 Calvin Klein is available in a shopping mall. 1 2 3 4 5 6 7 Calvin Klein is available in a hypermarket. 1 2 3 4 5 6 7 BRAND: DKNY Very unfamiliar Very familiar How familiar are you with DKNY? 1 2 3 4 5 6 7 Very Unlikely Very Likely DKNY is of Western (American/European) origin. 1 2 3 4 5 6 7 DKNY is available in a specialty store. 1 2 3 4 5 6 7 DKNY is available in a shopping mall. 1 2 3 4 5 6 7 DKNY is available in a hypermarket. 1 2 3 4 5 6 7 BRAND: Armani 161 Very unfamiliar Very familiar How familiar are you with Armani? 1 2 3 4 5 6 7 Very Unlikely Very Likely Armani is of Western (American/European) origin. 1 2 3 4 5 6 7 Armani is available in a specialty store. 1 2 3 4 5 6 7 Armani is available in a shopping mall. 1 2 3 4 5 6 7 Armani is available in a hypermarket. 1 2 3 4 5 6 7 BRAND: Manxx Very unfamiliar Very familiar How familiar are you with Manxx? 1 2 3 4 5 6 7 Very Unlikely Very Likely Manxx is of Western (American/European) origin. 1 2 3 4 5 6 7 Manxx is available in a specialty store. 1 2 3 4 5 6 7 Manxx is available in a shopping mall. 1 2 3 4 5 6 7 Manxx is available in a hypermarket. 1 2 3 4 5 6 7 BRAND: Flying Machine Very unfamiliar Very familiar How familiar are you with Flying Machine? 1 2 3 4 5 6 7 Very Unlikely Very Likely Flying Machine is of Western (American/European) origin. 1 2 3 4 5 6 7 Flying Machine is available in a specialty store. 1 2 3 4 5 6 7 Flying Machine is available in a shopping mall. 1 2 3 4 5 6 7 Flying Machine is available in a hypermarket. 1 2 3 4 5 6 7 SECTION 3 DIRECTION: The following set of questions asks for general information about you. Please provide your response by circling the appropriate number or writing in the blank located next to the question. What is your gender? 1. FEMALE 2. MALE 162 How old are you? Please specify: __________ years old. Which degree are you pursuing? 1. BACHELOR DEGREE (THREE YEARS) 2. BACHELOR DEGREE (FOUR YEARS) 3. MASTER DEGREE 4. DOCTORATE DEGREE Which year are you in your degree? Please specify: _______________________________________________ What is the field or area of topic of your degree? Please specify: ______________________________________ Do you live with? 1. PARENTS 2. SPOUSE 3. FRIENDS 4. ALONE Do you currently live in a? 1. VILLAGE 2. TOWN 3. CITY 4. METROPOLITAN AREA Prior to living in your current place of residence, did you live in a? 1. VILLAGE 2. TOWN 3. CITY 4. METROPOLITAN AREA Which languages do you speak? Please specify: ________________________________________ What is your monthly pocket money? 1. Rs. 1,000 OR LESS 2. Rs. 1,001 TO 1,500 3. Rs. 1 ,501 TO 2,000 4. Rs. 2,001 TO 5,000 5. ABOVE Rs. 5,000 Which of the following ranges includes your monthly household income from all sources? 1. Rs. 2,500 OR LESS 163 2. Rs. 2,501 TO 5,000 3. Rs. 5 ,001 TO 7,500 4. Rs. 7,501 TO 10,000 5. Rs. 10,001 TO 20,000 6. ABOVE Rs. 20,000 How much money do you spend in a month on shopping for clothing? 1. Rs. 500 OR LESS 2. Rs. 501 TO 1,000 3. Rs. 1 ,001 TO 2,500 4. Rs. 2,501 TO 5,000 5. ABOVE Rs. 5,000 This is the end of the survey. Thank you for your time! 164 APPENDIX D QUESTIONNAIRE: PHASE 2 (PRETEST 2) 165 SECTION 1 DIRECTION: Please circle a number on the 5-point scale (1 =NOT AT ALL FAMILIAR, 5= VERY FAMILIAR) to indicate your response to the following questions. Not at all Familiar Very familiar BRAND: [name] How familiar are you with this brand? 1 2 3 4 5 STORE TYPE: [name & definition] How familiar are you with this type of store? 1 2 3 4 5 DIRECTION: Please circle a number on the 5-point scale (1 = STRONGLY DISAGREE, 5= STRONGLY AGREE) to indicate your level of agreement with each of the statements with respect to the [brand name]. Strongly Disagree Neutral Strongly Agree This brand has consistent quality. 1 2 3 4 5 This brand is well-made. 1 2 3 4 5 This brand has an acceptable standard of quality. 1 2 3 4 5 This brand has good workmanship. 1 2 3 4 5 This brand would last a long time. 1 2 3 4 5 This brand would perform consistently. 1 2 3 4 5 This brand is reasonably priced. 1 2 3 4 5 This brand offers value for money. 1 2 3 4 5 This brand offers good products for the price. 1 2 3 4 5 This brand is worth the price. 1 2 3 4 5 This brand is economical. 1 2 3 4 5 This brand is one that I would enjoy. 1 2 3 4 5 This brand makes me want to buy it. 1 2 3 4 5 I would feel relaxed using this brand. 1 2 3 4 5 I would feel excited to use this brand. 1 2 3 4 5 This brand would make me feel good. 1 2 3 4 5 This brand would give me pleasure. 1 2 3 4 5 This brand would help me feel acceptable. 1 2 3 4 5 This brand would improve the way I am perceived. 1 2 3 4 5 This brand would help me give a good impression to other people. 1 2 3 4 5 This brand would give me social approval. 1 2 3 4 5 166 DIRECTION: Please circle a number on the 5-point scale (1 = STRONGLY DISAGREE, 5 = STRONGLY AGREE) to indicate your level of agreement with each of the statements with respect to the [store type]. Strongly Disagree Neutral Strongly Agree This type of store provides consistent quality of service. 1 2 3 4 5 This type of store provides consistent quality of shopping environment. 1 2 3 4 5 This type of store provides consistent quality of products. 1 2 3 4 5 This type of store has superior quality of service. 1 2 3 4 5 This type of store has superior quality of shopping environment. 1 2 3 4 5 This type of store has superior quality of products. 1 2 3 4 5 This type of store carries reasonably priced products. 1 2 3 4 5 This type of store offers value for money. 1 2 3 4 5 This type of store provides good products and service for the price. 1 2 3 4 5 Shopping at this type of store is worth the price. 1 2 3 4 5 This type of store would be economical. 1 2 3 4 5 I would enjoy shopping at this type of store. 1 2 3 4 5 This type of store makes me want to visit it. 1 2 3 4 5 I would feel relaxed shopping at this type of store. 1 2 3 4 5 I would feel excited to shop at this type of store. 1 2 3 4 5 I would feel good shopping in this type of store. 1 2 3 4 5 Visiting this type of store would give me pleasure. 1 2 3 4 5 Shopping at this type of store would help me feel acceptable. 1 2 3 4 5 Shopping at this type of store improves the way I am perceived. 1 2 3 4 5 Shopping at this type of store would help me give a good impression to other people. 1 2 3 4 5 Shopping at this type of store would give me social approval. 1 2 3 4 5 SECTION 2 DIRECTION: Below are a set of incomplete sentences, regarding this [brand name], given with contrasting words that can be used to complete these sentences. For each sentence please circle the number (on a 5-point scale) that best represents your response to complete the given sentences. should not should Most people who are important to me think that I _____ buy this brand. 1 2 3 4 5 completely false completely true It is _____ that most people who are important to me buy this brand. 1 2 3 4 5 167 do not buy buy The people in my life whose opinions I value______ this brand. 1 2 3 4 5 extremely unlikely extremely likely It is _____ that many people like me buy this brand. 1 2 3 4 5 DIRECTION: Below are a set of incomplete sentences, regarding this [store type], given with contrasting words that can be used to complete these sentences. For each sentence please circle the number (on a 5-point scale) that best represents your response to complete the given sentences. should not should Most people who are important to me think that I _____ shop at this type of store. 1 2 3 4 5 completely false completely true It is _____ that most people who are important to me shop at this type of store. 1 2 3 4 5 do not shop shop The people in my life whose opinions I value _____ at this type of store. 1 2 3 4 5 extremely unlikely extremely likely It is _____ that many people like me shop at this type of store. 1 2 3 4 5 DIRECTION: Here we would like know if it is under your control to buy this [brand name]. Below are a set of incomplete sentences given with contrasting words that can be used to complete these sentences. For each sentence please circle a number (on a 5-point scale) that best represents your response to complete the given sentences. impossible possible For me to buy this brand would be ___________ even if I wanted. 1 2 3 4 5 no control complete control I believe that I have _____over buying this brand. 1 2 3 4 5 definitely false definitely true It is _____ that if I wanted to, I could buy this brand. 1 2 3 4 5 It is _____ that it is mostly up to me whether or not I buy this brand. 1 2 3 4 5 It is _____ that if I wanted to, I could buy this brand because I can afford it. 1 2 3 4 5 It is _____that if I wanted to, I could buy this brand because I can make the time to shop for it. 1 2 3 4 5 168 It is _____ that if I wanted to, I could buy this brand because it is available in the store that I can go. 1 2 3 4 5 DIRECTION: We would like to know if it is under your control to shop at this [store type]. Below are a set of incomplete sentences given with contrasting words that can be used to complete these sentences. For each sentence please circle a number (on a 5-point scale) that best represents your response to complete the given sentences. impossible possible For me to shop at this type of store would be _____ even if I wanted. 1 2 3 4 5 no control complete control I believe that I have ____over shopping at this type of store. 1 2 3 4 5 definitely false definitely true It is ____ that if I wanted to, I could shop at this type of store. 1 2 3 4 5 It is _____ that it is mostly up to me whether or not I shop at this type of store. 1 2 3 4 5 It is _____ that if I wanted to, I could shop at this type of store because I can afford it. 1 2 3 4 5 It is _____that if I wanted to, I could shop at this type of store because I can make the time to go to the store. 1 2 3 4 5 It is _____ that if I wanted to, I could shop at this type of store because it is located within the distance I can travel. 1 2 3 4 5 DIRECTION: Below are a set of questions corresponding to this this [brand name] and [store type] given with contrasting words. For each question please circle a number (on a 5-point scale) that best represents your response. extremely unlikely extremely likely How likely are you to buy this brand at this store? 1 2 3 4 5 SECTION 3 DIRECTION: Some people enjoy being affiliated with certain groups of people and at other times they like to be different. Please circle a number on a 5-point scale (1 = STRONGLY DISAGREE, 5 = STRONGLY AGREE) to indicate your level of agreement with each of the statements. 169 Strongly Disagree Neutral Strongly Agree I do not like people to think that I am a conventional member of the general population. 1 2 3 4 5 Feeling similar to the general population makes me feel uncomfortable. 1 2 3 4 5 I would rather be just like the general population than be viewed as a high-status person. 1 2 3 4 5 I have a desire to act differently from the general population. 1 2 3 4 5 I have a desire to differentiate myself from the general population. 1 2 3 4 5 It is important for me that others see me belong to an upper class in the society. 1 2 3 4 5 I often behave in a manner that makes me fit the upper class in the society. 1 2 3 4 5 I often pay attention to how upper-class people behave. 1 2 3 4 5 I am interested in status. 1 2 3 4 5 It is important to me to belong to a group with status. 1 2 3 4 5 It is important to me to enhance my image to belong to a group with status. 1 2 3 4 5 SECTION 4 DIRECTION: Through advances in media and technology we increasingly come in contact with the Western world. Here we would like to know your opinion regarding the same. Please circle a number on a 5-point scale (1 = STRONGLY DISAGREE, 5 = STRONGLY AGREE) to indicate your level of agreement with each of the statements. Strongly Disagree Neutral Strongly Agree I enjoy watching advertising for Western products on TV. 1 2 3 4 5 I enjoy seeing ads for Western products everywhere 1 2 3 4 5 In my city, I like seeing billboards, and advertising signs for Western products. 1 2 3 4 5 I feel very comfortable speaking in English. 1 2 3 4 5 I often speak English with family or friends. 1 2 3 4 5 I speak English regularly. 1 2 3 4 5 I enjoy watching Hollywood films at the theatre. 1 2 3 4 5 I think people my age are basically the same around the world. 1 2 3 4 5 170 Strongly Disagree Neutral Strongly Agree For example, a 20-something in India is basically the same as a 20-something in the U.S. I think that my lifestyle is almost the same as that of people of my age-group in Western countries. 1 2 3 4 5 I think my lifestyle is almost the same as that of people of my social class in Western countries. 1 2 3 4 5 The way that I dress is influenced by the advertising activities of Western companies. 1 2 3 4 5 Advertising by brands from Western countries has a strong influence on my shopping choices. 1 2 3 4 5 SECTION 5 DIRECTION: The following set of questions asks for general information about you. Please provide your response by circling the appropriate number or writing in the blank located next to the question. What is your gender? 1. FEMALE 2. MALE How old are you? Please specify: __________ years old. Which languages do you speak? Please specify:___________________________________________ Do you currently live in a- 1. VILLAGE 2. TOWN 3. CITY 4. METROPOLITAN AREA What is the highest level of education you have completed? 1. 8TH GRADE OR LESS 2. 12TH GRADE 3. SOME COLLEGE OR TECHNICAL SCHOOOL 4. COLLEGE DEGREE (3 to 4 YEARS) 5. GRADUATE DEGREE (MASTER?S, DOCTORATE, ETC.) How far do you need to travel to buy this [brand name] at this [store type]. Please specify: _________________________________________________________ 171 Which of the following describes your marital status? 1. SINGLE 2. MARRIED 3. SEPARATED 4. DIVORCED 5. WIDOWED Which of the following ranges includes your monthly household income from all sources? 1. Rs. 2,500 OR LESS 2. Rs. 2,501 TO 5,000 3. Rs. 5 ,001 TO 7,500 4. Rs. 7,501 TO 10,000 5. Rs. 10,001 TO 20,000 6. ABOVE Rs. 20,000 Which of the following best describes your current occupation? 1. PROFESSIONAL OR TECHNICAL (e.g., accountant, artist, computer specialist, engineer, nurse, doctor, teacher) 2. MANAGER OR ADMINISTRATOR (NON-FARM) 3. SALES WORKER (e.g., insurance salesperson, real estate salesperson, sales clerk, stockbroker) 4. CLERICAL WORKER (e.g., bank teller, bookkeeping, office clerk, postal worker, secretary, teacher?s aide) 5. CRAFTS WORKER (e.g., barber, carpenter, electrician, foreman, jeweler, mechanic, plumber, tailor) 6. MACHINE OPERATION OR LABORER (e.g., bus driver, conductor, factory worker, truck driver) 7. FARMER, FARM MANAGER, OR FARM LABORER 8. SERVICE WORKER OR PRIVATE HOUSEHOLD WORKER (e.g., barber, bartender, cook, firefighter, police officer, waiter) 9. MILITARY 10. HOMEMAKER 11. STUDENT 12. UNABLE TO WORK 13. OTHER (Please specify:___________________________________________) How much money do you spend in a month on shopping for clothing? 1. Rs. 500 OR LESS 2. Rs. 501 TO 1,000 3. Rs. 1 ,001 TO 2,500 4. Rs. 2,501 TO 5,000 5. ABOVE Rs. 5,000 This is the end of the survey. Thank you for your time! 172 APPENDIX E QUESTIONNAIRE: PHASE 3 (MAIN STUDY) 173 SECTION 1 DIRECTION: Please circle a number on the 5-point scale (1 =NOT AT ALL FAMILIAR, 5= VERY FAMILIAR) to indicate your response to the following questions. Not at all Familiar Very familiar BRAND: [name] How familiar are you with this brand? 1 2 3 4 5 STORE TYPE: [name & definition] How familiar are you with this type of store? 1 2 3 4 5 DIRECTION: Please circle a number on the 5-point scale (1 = STRONGLY DISAGREE, 5= STRONGLY AGREE) to indicate your level of agreement with each of the statements with respect to the [brand name]. Strongly Disagree Neutral Strongly Agree This brand has consistent quality. 1 2 3 4 5 This brand is well-made. 1 2 3 4 5 This brand has an acceptable standard of quality. 1 2 3 4 5 This brand has good workmanship. 1 2 3 4 5 This brand would last a long time. 1 2 3 4 5 This brand would perform consistently. 1 2 3 4 5 This brand is reasonably priced. 1 2 3 4 5 This brand offers value for money. 1 2 3 4 5 This brand offers good products for the price. 1 2 3 4 5 This brand is worth the price. 1 2 3 4 5 This brand is economical. 1 2 3 4 5 This brand is one that I would enjoy. 1 2 3 4 5 This brand makes me want to buy it. 1 2 3 4 5 I would feel relaxed using this brand. 1 2 3 4 5 I would feel excited to use this brand. 1 2 3 4 5 This brand would make me feel good. 1 2 3 4 5 This brand would give me pleasure. 1 2 3 4 5 This brand would help me feel socially acceptable. 1 2 3 4 5 This brand would improve the way I am perceived by other people. 1 2 3 4 5 This brand would help me give a good impression to other people. 1 2 3 4 5 This brand would give me social approval. 1 2 3 4 5 174 DIRECTION: Please circle a number on the 5-point scale (1 = STRONGLY DISAGREE, 5 = STRONGLY AGREE) to indicate your level of agreement with each of the statements with respect to the [store type]. Strongly Disagree Neutral Strongly Agree This type of store provides consistent quality of service. 1 2 3 4 5 This type of store provides consistent quality of shopping environment. 1 2 3 4 5 This type of store provides consistent quality of products. 1 2 3 4 5 This type of store has superior quality of service. 1 2 3 4 5 This type of store has superior quality of shopping environment. 1 2 3 4 5 This type of store has superior quality of products. 1 2 3 4 5 This type of store carries reasonably priced products. 1 2 3 4 5 This type of store offers value for money. 1 2 3 4 5 This type of store provides good products and service for the price. 1 2 3 4 5 Shopping at this type of store is worth the price. 1 2 3 4 5 This type of store would be economical. 1 2 3 4 5 I would enjoy shopping at this type of store. 1 2 3 4 5 This type of store makes me want to visit it. 1 2 3 4 5 I would feel relaxed shopping at this type of store. 1 2 3 4 5 I would feel excited to shop at this type of store. 1 2 3 4 5 I would feel good shopping in this type of store. 1 2 3 4 5 Visiting this type of store would give me pleasure. 1 2 3 4 5 Shopping at this type of store would help me feel socially acceptable. 1 2 3 4 5 Shopping at this type of store improves the way I am perceived by other people. 1 2 3 4 5 Shopping at this type of store would help me give a good impression to other people. 1 2 3 4 5 Shopping at this type of store would give me social approval. 1 2 3 4 5 SECTION 2 DIRECTION: Below are a set of incomplete sentences, regarding this [brand name], given with contrasting words that can be used to complete these sentences. For each sentence please circle the number (on a 5-point scale) that best represents your response to complete the given sentences. should not should Most people who are important to me think that I _____ buy this brand. 1 2 3 4 5 completely false completely true 175 It is _____ that most people who are important to me buy this brand. 1 2 3 4 5 do not buy buy The people in my life whose opinions I value______ this brand. 1 2 3 4 5 extremely unlikely extremely likely It is _____ that many people like me buy this brand. 1 2 3 4 5 DIRECTION: Below are a set of incomplete sentences, regarding this [store type], given with contrasting words that can be used to complete these sentences. For each sentence please circle the number (on a 5-point scale) that best represents your response to complete the given sentences. should not should Most people who are important to me think that I _____ shop at this type of store. 1 2 3 4 5 completely false completely true It is _____ that most people who are important to me shop at this type of store. 1 2 3 4 5 do not shop shop The people in my life whose opinions I value _____ at this type of store. 1 2 3 4 5 extremely unlikely extremely likely It is _____ that many people like me shop at this type of store. 1 2 3 4 5 DIRECTION: Here we would like know if it is under your control to buy this [brand name]. Below are a set of incomplete sentences given with contrasting words that can be used to complete these sentences. For each sentence please circle a number (on a 5-point scale) that best represents your response to complete the given sentences. impossible possible For me to buy this brand would be _____ even if I wanted. 1 2 3 4 5 no control complete control I believe that I have _____over buying this brand. 1 2 3 4 5 definitely false definitely true It is _____ that if I wanted to, I could buy this brand. 1 2 3 4 5 It is _____ that it is mostly up to me whether or not I buy this brand. 1 2 3 4 5 It is _____ that I afford to buy this brand if I wanted it. 1 2 3 4 5 176 It is _____that I could make time to buy this brand if I wanted it. 1 2 3 4 5 definitely false definitely true It is _____ that this brand is available in the store where I can go. 1 2 3 4 5 DIRECTION: We would like to know if it is under your control to shop at this [store type]. Below are a set of incomplete sentences given with contrasting words that can be used to complete these sentences. For each sentence please circle a number (on a 5-point scale) that best represents your response to complete the given sentences. impossible possible For me to shop at this type of store would be _____ even if I wanted. 1 2 3 4 5 no control complete control I believe that I have ____over shopping at this type of store. 1 2 3 4 5 definitely false definitely true It is ____ that if I wanted to, I could shop at this type of store. 1 2 3 4 5 It is _____ that it is mostly up to me whether or not I shop at this type of store. 1 2 3 4 5 It is _____ that I could afford to shop at this type of store if I wanted to. 1 2 3 4 5 It is _____that I could make time to shop at this type of store if I wanted to. 1 2 3 4 5 It is _____ that if I wanted to, I could shop at this type of store because it is located within the distance I can travel. 1 2 3 4 5 DIRECTION: Below are a set of questions corresponding to this this [brand name] and [store type] given with contrasting words. For each question please circle a number (on a 5-point scale) that best represents your response. extremely unlikely extremely likely How likely are you to buy this brand at this store? 1 2 3 4 5 SECTION 3 177 DIRECTION: Some people enjoy being affiliated with certain groups of people and at other times they like to be different. Please circle a number on a 5-point scale (1 = STRONGLY DISAGREE, 5 = STRONGLY AGREE) to indicate your level of agreement with each of the statements. Strongly Disagree Neutral Strongly Agree I do not like people to think that I am a conventional member of the general population. 1 2 3 4 5 Feeling similar to the general population makes me feel uncomfortable. 1 2 3 4 5 I have a desire to act differently from the general population. 1 2 3 4 5 I have a desire to differentiate myself from the general population. 1 2 3 4 5 It is important for me that others see me belong to a group with status. 1 2 3 4 5 I often behave in a manner that makes me fit with people with status. 1 2 3 4 5 I often pay attention to how people with status behave. 1 2 3 4 5 I am interested in status. 1 2 3 4 5 It is important to me to belong to a group with status. 1 2 3 4 5 It is important to me to enhance my image to belong to a group with status. 1 2 3 4 5 SECTION 4 DIRECTION: Through advances in media and technology we increasingly come in contact with the Western world. Here we would like to know your opinion regarding the same. Please circle a number on a 5-point scale (1 = STRONGLY DISAGREE, 5 = STRONGLY AGREE) to indicate your level of agreement with each of the statements. Strongly Disagree Neutral Strongly Agree I enjoy watching advertising for Western products on TV. 1 2 3 4 5 I enjoy seeing ads for Western products everywhere 1 2 3 4 5 I like seeing billboards, and advertising signs for Western products. 1 2 3 4 5 I feel very comfortable speaking in English. 1 2 3 4 5 I often speak English with family or friends. 1 2 3 4 5 I speak English regularly. 1 2 3 4 5 I enjoy watching films from Western countries. 1 2 3 4 5 178 Strongly Disagree Neutral Strongly Agree The way that I dress is influenced by the advertising activities of Western companies. 1 2 3 4 5 Advertising by brands from Western countries has a strong influence on my shopping choices. 1 2 3 4 5 I like to wear Western style clothing. 1 2 3 4 5 I enjoy dining at Western style restaurants. 1 2 3 4 5 Some of my favorite actors/actresses are from Western countries. 1 2 3 4 5 I enjoy listening to music that is from Western countries. 1 2 3 4 5 I like Western television. 1 2 3 4 5 I like to read about Western celebrities. 1 2 3 4 5 SECTION 5 DIRECTION: The following set of questions asks for general information about you. Please provide your response by circling the appropriate number or writing in the blank located next to the question. What is your gender? 1. FEMALE 2. MALE How old are you? Please specify: __________ years old. Which languages do you speak? Please specify:___________________________________________ Do you currently live in a- 1. VILLAGE 2. TOWN 3. CITY 4. METROPOLITAN AREA How far do you need to travel to buy this [brand name] at this [store type]. Please specify: _________________________________________________________ What is the highest level of education you have completed? 1. 8TH GRADE OR LESS 2. 12TH GRADE 3. SOME COLLEGE OR TECHNICAL SCHOOOL 4. COLLEGE DEGREE (3 to 4 YEARS) 5. GRADUATE DEGREE (MASTER?S, DOCTORATE, ETC.) 179 Which of the following describes your marital status? 1. SINGLE 2. MARRIED 3. SEPARATED 4. DIVORCED 5. WIDOWED Which of the following ranges includes your monthly household income from all sources? 1. Rs. 2,500 OR LESS 2. Rs. 2,501 TO 5,000 3. Rs. 5 ,001 TO 7,500 4. Rs. 7,501 TO 10,000 5. Rs. 10,001 TO 20,000 6. ABOVE Rs. 20,000 How much money do you spend in a month on shopping for clothing? 1. Rs. 500 OR LESS 2. Rs. 501 TO 1,000 3. Rs. 1 ,001 TO 2,500 4. Rs. 2,501 TO 5,000 5. ABOVE Rs. 5,000 Which of the following best describes your current occupation? 1. PROFESSIONAL OR TECHNICAL (e.g., accountant, artist, computer specialist, engineer, nurse, doctor, teacher) 2. MANAGER OR ADMINISTRATOR (NON-FARM) 3. SALES WORKER (e.g., insurance salesperson, real estate salesperson, sales clerk, stockbroker) 4. CLERICAL WORKER (e.g., bank teller, bookkeeping, office clerk, postal worker, secretary, teacher?s aide) 5. CRAFTS WORKER (e.g., barber, carpenter, electrician, foreman, jeweler, mechanic, plumber, tailor) 6. MACHINE OPERATION OR LABORER (e.g., bus driver, conductor, factory worker, truck driver) 7. FARMER, FARM MANAGER, OR FARM LABORER 8. SERVICE WORKER OR PRIVATE HOUSEHOLD WORKER (e.g., barber, bartender, cook, firefighter, police officer, waiter) 9. MILITARY 10. HOMEMAKER 11. STUDENT 12. UNABLE TO WORK 13. OTHER (Please specify:___________________________________________) This is the end of the survey. Thank you for your time! 180 APPENDIX F IRB APPROVAL PROTOCOL # 11-298 EX 1109 181 182 183 184 185 186 187 188 189 190