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Understanding the Role

of Retail Store Service in
Light of Self-Image–Store
Image Congruence
Aron O’Cass
The University of Newcastle, Australia

Debra Grace
Griffith University, Australia

ABSTRACT

The relationships among a consumer’s service experience, the

servicescape, and perceived value for the money spent on the
service are important theoretical as well as practical issues. Little
effort has, however, been devoted to understanding these in the
context of the effects of consumer image–store image congruency.
Image congruency has not only been shown to be valuable in rela-
tion to product choices, but has also been shown to contribute to
our understanding of retail store choice and preferences. This study
examines the effect of retailer service provision and the retail store
environment (servicescape) on the customers’ perception of value
for money. The study also examines the role of self–store image
congruence in the above relationships. The findings confirm the
hypothesized relationships in the conceptual model (except for
servicescape effects). The findings also indicate that the effects
are stronger for those individuals experiencing high self–store
image congruence. © 2008 Wiley Periodicals, Inc.

INTRODUCTION

There has, for some time now, been a movement towards identifying the key
drivers of perceived value in relation to consumer goods, but with, perhaps

Psychology & Marketing, Vol. 25(6): 521–537 (June 2008)

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minimal focus on value perception of retail service and its nexus with consumer
self-image–store image congruency. The movement toward identifying and elab-
orating the complex nature of the retail store service is of critical importance and
has been highlighted by Baker et al. (2002) and Cronin, Brady, and Hult (2000).
While much effort has been devoted to issues related to consumer satisfaction
and retail patronage behavior, a growing body of work on perceived value is
beginning to accumulate. However, much remains to be done to fully under-
stand how perceived value is influenced by different retail settings or formats,
and how this relationship is moderated by consumer self–store image congru-
ency. The growing economic value of retailing and services is undeniable, and
it may be argued that the real growth is in the potential that lies within the
stores’ ability to deliver customer value, particularly that related to retail serv-
ice provision and the environment the consumer shops in. For example, the U.S.
retail industry generated about $3.4 trillion in retail trade in the year 2003
(U.S. Census Bureau, 2002), while service revenue for employer and non-employer
firms was worth about $4.6 trillion in 2002 (U.S. Census Bureau, 2004). Given
the significance of achieving market share and loyalty, value delivery is critical
for stores to obtain consistent revenue streams in this growing industry.
The ability of the retailers’ offerings to deliver value to customers in order to
enhance re-patronage intentions is a critical issue for retailers (and service
providers in general). A combination of the retailer’s service attributes (e.g.,
core, employees, and servicescape) appear to constitute the primary drivers of
customers’ perceived value and patronage intention. Often within the provision
of services (and retailing), the store service components are not clearly evident,
and the benefits derived from service provision derive from interactive trans-
actions that involve processes, people, and physical environments. For exam-
ple, in the retail store setting, customers must engage in personal interaction
with salespeople, be able to complete their purchases within the processes
afforded to them by the store, and consummate their transactions within the
physical environment provided. Thus, the objective of this study is to investigate
the effect of the people, processes, and physical environment of the retail offer-
ing of stores on the creation of perceived value among retail store consumers.
This focus is overlaid with an examination of the element of self–store image con-
gruency as a moderator of store service and perceived value.

STORE SERVICE AND PERCEIVED VALUE

An examination of service systems and identification of competencies can be

made on the basis of the service process (degree of customization and technol-
ogy utilized), skills and knowledge of service employees, and physical facilities
(servicescape) in which the service is delivered (Tax & Stuart, 1997). The core
service and employee service delivered in a store are closely related in that the
core service refers to the processes by which the service is delivered, whereas
the employee service refers to the behaviors or performances of the employees
in the execution of the service processes. The physical facility (servicescape)
also plays an important role in the service delivery as it provides the environ-
ment within which the service takes place.
In terms of retail stores, the core service is provided through the effective
merchandising of goods, provision of payment and delivery options, and the

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provision of information regarding store merchandise. This view is related to

Christopher’s (1996) argument that, in services, processes deliver value to cus-
tomers. In fact, Thang and Tan (2003) identify that the core service offering pro-
vided by stores through merchandising significantly affects consumer preferences.
Along similar lines, Grace and O’Cass (2001) conclude that failures pertaining
directly to the core service are significant causes of switching among consumers,
indicating the potency of the core service element of a service.
While the literature supports the notion that the core service influences the
customer’s perception of value, some advocate that increasing emphasis should
be placed on the interpersonal dimensions of the service offering. The service pro-
vided by employees is argued to play an important role in consumers’ evalua-
tions of service performance (Broderick, 1999). In fact, the behavior of the service
employee has the potential to affect the customer’s response to the
service encounter and their perception of service quality (Pugh, 2001). Along
with core service and employee service, the servicescape is also an important
element in retailing, and as such these three elements are contributing compo-
nents of store image that is evaluated by consumers.
While perceived quality and shopping behavior are important, the consumer’s
perception of value derived from the retail stores’ service provision is also a sig-
nificant issue for marketers. In fact, Yang and Peterson (2004) advocate that, if
continued customer loyalty is the goal, a strong focus should be given to both sat-
isfaction and perceived value. The consumer’s perception of value is the trade-
off between what is given up or sacrificed and what is gained or received in the
context of the retail store offering (excluding the actual product purchased). In
the context of retail stores, the acquisition of merchandise is only one of the
many goals of store patrons, but for retailers, acquisition is crucial as no sales
or profit is made until consumers acquire their merchandise. For example,
patrons may shop primarily for replenishment or utility, or they may shop for
pleasure and relaxation. In short, the costs (or sacrifices) associated with prod-
uct purchases may not be strictly of a monetary nature, even for those who shop
for utility motives. For example, time and effort spent to acquire the required
merchandise are also sacrifices that consumers make. Similarly, the benefits
gained are not strictly limited to those derived from the consumption of the
merchandise purchased. Rather, they can be articulated, for example, through
advice and attentiveness given by store employees, payment options made avail-
able by the store, and the reduction of perceived risk associated with store refund
policies. In fact, Cronin, Brady, and Hult (2000) found that service consumers
place greater importance on the quality of a service than they do on the costs
(sacrifice). Thus, the more a store is effective in providing such perceived bene-
fits, the more likely it will be that the scales are tipped in favor of enhanced
customers’ perceived value, as indicated in Figure 1.
While the focus here is on store service provision, the importance of the phys-
ical products (brands) sold as part of store service, are not discounted. However,
the core retail service and how employees deliver services in retail outlets are
important, if not the primary points of differentiation for retailers, as many
stores carry the same or similar product lines and brands. Thus, in the context
of the theoretical framework, core retail service and employee service are included
as two components of retail store service provision. Baker et al. (2002) also
alluded to the importance of employees, and their work is extended here, with
the focus being on both the core service and employees.

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Store Service
Provision
H1

H3

Self–Store Image Perceived Value for

Congruence Money

H4
H2

Servicescape

Figure 1. Proposed model.

When a retailer delivers to customers the services they seek through the
effective execution of service by their employees, the resulting value perception
should be enhanced. Customers will subjectively weigh up the services provided
by the store employee and make an assessment of value for money. Thus,

H1: Retail store service provision will have a significant effect on perceived
value for money.

Apart from what is delivered in the retail service encounter, customers also
make an assessment of the environment it is delivered in. The extension here
focuses on how value is delivered by the environment a consumer shops in.
Thus, the servicescape is also a vital component that delivers value to customers
(as shown in Figure 1). Servicescape elements, such as retailer displays and
background music in the retail environment, have been found to affect shop-
ping behavior (Buchanan, Simmons, & Bickart, 1999). The environment has
also been given prominence by Baker et al. (2002) when they asked, “how does
the store retail environment tie in to customers’ perceptions of the value”
(p. 120). Thus, their work provides a solid basis to extend retail theory into a broader
notion of value delivery, beyond just product pricing. In fact, the contention is raised
here that when a store environment is evaluated positively by consumers (shop-
pers), then this will contribute to value for money perceptions. Thus,

H2: Retail servicescape will have a significant effect on perceived value for
money.

SELF-IMAGE–STORE IMAGE CONGRUENCY

In an environment of increased competition with rapid market entry of new

store concepts and formats (Maronick & Stiff, 1985), a constant challenge of
increasing store patronage (and loyalty) and delivering greater value to cus-
tomers is faced by many retail stores. This also presents a significant research
challenge for a more in-depth understanding and empirical estimation of
consumers’ behavior related to retail stores, particularly in relation to store

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image–consumer image congruency. The need to explore affective variables,

such as image congruency, in the retail setting is highlighted by Barnes (1998)
who found that affective variables were more influential in nurturing close, sat-
isfying customer relationships than were situational and behavioral variables.
The conceptualization of store image has been advanced in the past by Doyle and
Fenwick (1974), James, Durand, and Dreves (1976), and Marks (1976), and the
dominant attitudinal perspective that is taken in the literature treats store
images as the result of a multi-attribute model (Marks, 1976; James, Durand,
and Dreves, 1976). Image is expressed as a function of the salient attributes of
a particular store that are evaluated and weighted against each other. There-
fore, for consistency, store image is defined here as the complex aggregate of a
customer’s perceptions of a store on salient attributes (Houston & Nevin, 1981).
Such attributes include, but may not be limited to, the elements identified above
relating to store service provision and servicescape.
For some time now self-image–product image congruence has been a major
focus of consumer research (largely focused on products). Self-congruity theory
advocates that consumer behavior is determined, in part, by “the congruence
resulting from a psychological comparison involving the product-user image
and the consumer’s self-concept” (Sirgy et al., 1997, p. 230). High self-congruity
occurs when the identified brand (store)–user image (or brand image) is
perceived to match the consumer’s own self-image. On the other hand, low self-
congruity occurs when the consumer perceives there to be no or minimal match
between the brand–user image and the consumer’s self-image (O’Cass & Lim,
2002). Through the purchase and use of products, consumers define, maintain,
and enhance their self-concept (Zinkhan & Hong, 1991). Although self-image
congruity theory has been tested across many product categories (such as shoes,
clothing, cars, cameras, soft drinks, beer, credit cards, and so on), the theory has
not been tested extensively in the retail store context. Previous research indi-
cates that self-image congruity can affect advertising effectiveness (Bjerke & Pole-
gato, 2006; Hong & Zinkhan, 1995) and consumers’ product preferences and
their purchase intention (Ericksen, 1996). For instance, Ericksen (1996), in her
study involving European consumers and an American automobile (the Ford
Escort), found that a relationship did exist between self-image congruity and
intention to purchase the automobile. Thus, consumers appear to prefer brands
that have images compatible with their own self-perception (Belk, Bahn, &
Mayer, 1982; Ericksen, 1996; Zinkhan & Hong, 1991) and, importantly, this view
is also analogous with retail stores.
Thus, taking the research base developed in the context of products and apply-
ing this to retail stores, the congruence between self-image and store image
would also be positively related to consumers’ store service and value evalua-
tions, as shown in Figure 1. That is, the more similar a consumer’s self-image
is to the store’s image, the more favorable their evaluations of that store should
be. This view is consistent with the work of Graeff (1996). It is argued that store
service provision and perceived value will be greater in the retail context of
self–store image being high. Thus, when consumers’ store image and self-image
are congruent, the service delivered (i.e., core and employee) by the store should
be seen to provide greater value to the customer. Thus,

H3: The degree of self–store image congruency will moderate the relationships
between retail store service provision and perceived value for money.

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In the context of retail store services and other services, where tangible attrib-
utes are negligible, the use of self-image congruence methods may be an effec-
tive tool in establishing a strong link with the consumer through the retail
service image–user image (typical consumer or shopper in the store). Taking
this notion on board, Sirgy, Grewel, and Mangleburg (2000) argue that store
environment influences image congruency, while Ekinci and Riley (2002) sug-
gest that in any service context, self-image congruence is an important vari-
able because “customers bring not only their expectations, but also themselves
to the service production area.” These two views appear relevant to retail stores
also. The significance of self-concept lies in the fact that, in many cases, what a
consumer buys can be influenced by the image that the consumer has of him/her-
self (Zinkhan & Hong, 1991). This perhaps is also the case for where the consumer
buys.
Over the years, different authors have distinguished different store attributes
or characteristics that are part of the overall image of the store (the so-called
retail mix). However, it has been argued consistently that customers’ patronage
behavior toward a particular store is dependent on their image of that particu-
lar store (Osman, 1993). The more favorable the store image, the higher the
valence of the store to the customer. However, the relationship between store
image and store loyalty/patronage has remained inclusive. This point is also
valid in the context of store image and perceived value by customers. For exam-
ple, there is little if any work examining the image–perceived value connection.
One study that examined a closely aligned area was that of Baker et al. (2002),
which examined store image and the perceived value of merchandise. Their
findings indicate high-image stores create an expectation of higher prices (i.e.,
greater value). Further, work by Nagle (1987) indicates that a principal deter-
minant of consumers’ responses to price is their perception of the store envi-
ronment. As such, it would be likely that evaluations of the retail store
environment and the perception of value derived would be impacted by
store image–self-image congruency. That is, the influence of the retail store
service environment will have a greater influence on perceived value for money
when self–store image congruency is high. Thus,

H4: The degree of self–store image congruency will moderate the relationships
between retail servicescape and perceived value for money.

METHOD

A survey approach to data collection was chosen and, given the focus on retail-
ing, it was decided to utilize mall intercepts. Respondents were surveyed in a
closed community shopping mall following procedures similar to Wakefield and
Baker (1998). The survey development process was undertaken in two stages.
The first stage involved the generation of items from the literature and from
structured and unstructured interviews with potential respondents. Having
generated the initial item pool, consideration was given to scaling and format-
ting options. It was decided that scale formats would be standardized (recom-
mended by Converse & Presser, 1986) and a 7-point Likert scale (as recommended
by Ryan & Garland, 1999) would be used to capture the magnitude and direction
of responses for all items. At this point a draft survey was developed for further

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testing. Stage two of the survey development process involved pilot testing and
focus group evaluation of the draft survey. This resulted in the refinement of the
survey format and some survey items.
The final survey consisted of items that were adapted, from preexisting meas-
ures in the literature, to reflect the context of the study on retail store service,
for example, employee service and servicescape from Cronin and Taylor (1992),
price/value for money from Sweeney and Soutar (2001), and self-image con-
gruence (Sirgy et al., 1997; O’Cass & Lim, 2002). Items used to measure core
service were generated from a series of in-depth interviews. Furthermore, retail
store stimuli used in the survey were six retail stores (store brands) ranging from
supermarkets to department stores. At the beginning of the survey, respondents
were asked to select one retail store (brand stimuli) to use as a frame of refer-
ence in responding to the subsequent survey items.

Data Collection
A field study was chosen in order to gain information directly from shoppers
about their views, perceptions, and experiences with the retail stores that were
the focus of the study and in the actual shopping mall (Wakefield & Baker, 1998;
Dawson, Bloch, & Ridgway, 1990). Mall intercept administration based on the
work of Eroglu, Machleit, and Chebat (2005) and Dunning, Pecotich, and O’Cass
(2004) was adopted. The mall intercept is suitable due to its ability to access
potential respondents over a short period of time and its compatibility with the
selected survey approach, thus enabling the researchers to arouse interest in
the research, screen potential respondents, and enable respondents to seek clar-
ification if needed. The opportunity for personal discourse with respondents,
when required, was important in order to maximize the integrity of the result-
ing data. Due to the opportunity for face-to-face contact, mall intercept has been
found to produce higher-quality data than other techniques (e.g., telephone
interviewing) (Keen et al., 2004) and, as such, this mode of data collection was
considered to be most appropriate. Furthermore, this method was chosen using
a rationale similar to that of Chaudhuri and Holbrook (2001), who argued that
data collection should be conducted at a place where the brand is consumed or
purchased. On this basis, a shopping mall was chosen where all the retail stores
used in the study were also located within the shopping precinct.
A purposeful sampling technique was used and only those consumers who had
experienced (shopped at) one of the retail stores referred to in the survey, and
who were over the age of 15, qualified to participate (similar to the criteria
adopted by Chaudhuri & Holbrook, 2001). A combined approach to data collec-
tion was adopted whereby the survey was person-administered, yet self-completed
by the respondent. As such, this data collection method involved, first, approach-
ing the respondent to elicit interest in the research and explain the research
objective. At this point, respondents were asked to view the list of six retail
stores used as stimuli for the survey and were asked if they had used any of
these stores within the past 6 months. Those who had experienced at least one
of these stores, who were over the age of 15, and who were willing to participate
were then seated at a table, at which stage the survey was self-completed.
The researcher remained in the vicinity of the table until respondents had com-
pleted the survey and spoke to them only at times when some minor clarifica-
tion was needed. Adopting this combined survey approach proved to be

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advantageous in terms of its cost effectiveness, improved response rate, ability

to allow respondents to seek clarification if necessary, and reducing missing
data. Data were collected over three days in a single mall location with high
traffic flow; the shopper profile consisted of 50% residential and 50% non-
residential (i.e., shoppers who did not reside in the local area) and, in order to
minimize respondent bias, the 3-day period of data collection period included a
weekday with normal trading hours, a weekday which included late-night trad-
ing hours, and one trading day over the weekend.

RESULTS

Preliminary Analysis
Data were collected from 248 respondents; analysis of the demographic and
classification variables indicates the sample represented a wide range of ages
(15–77 years) that were relatively evenly distributed across both education and
income levels, with a gender split of 34.3% males and 65.7% females. Store usage
was high, with 46% of respondents patronizing the chosen store once or more a
week, 34.6% using the store once or more a month, and 19.4% using the retail
store less than once a month.
Initially, bivariate correlations between the items within each construct were
inspected and all coefficients fell within acceptable ranges for subsequent fac-
tor analysis of 0.30 to 0.90. Table 1 presents the results of the analysis for the
data, providing the factor loadings, reliabilities, and variance explained.
Cronbach’s alpha was then computed, indicating good reliabilities of the scales,
ranging from 0.79 to 0.96, as indicated in Table 1. Finally, confirmatory factor
analysis was conducted to determine the fit of the measurement models.
Goodness-of-fit indexes (GFI) ranged from 0.98 to 0.99 and were above the rec-
ommended level of 0.90, while the root mean square errors (RMSEA) ranged
from 0.00 to 0.08, all being equal to or under the recommended level of 0.08.
In addition, root mean residuals (RMR) ranged from 0.01 to 0.05, under the rec-
ommended level of 0.05, and probability levels were all equal to or in excess of
0.05. Preliminary analysis indicated that all items are valid and reliable meas-
ures for their respective constructs and all measures related to constructs were
computed into composite means.
As argued by Fornell and Larcker (1981), convergent validity is achieved if
the average variance explained (AVE) in items by their respective constructs is
greater than the variance unexplained (i.e., AVE ⬎ 0.50). Therefore, in order to
assess the constructs (factors) for convergent validity, the squared multiple cor-
relations from the confirmatory factor analysis were used to calculate the aver-
age variance explained. This resulted in all factors having an average variance
explained (AVE) greater than or equal to 0.50, thus meeting the recommended
criteria for convergent validity. The calculated AVEs for each of the factors are
as follows: servicescape (0.51), core service (0.71), employee service (0.59),
self–store image congruence (0.50), and perceived value for money (0.64).
Once the composite measures were computed, an assessment of discriminant
validity was initiated, as recommend by Gaski and Nevin (1985), who posit that
if the correlation between two composite constructs is not higher than their
respective reliability estimates, then discriminant validity exists. Therefore,

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Table 1. Preliminary Results.

CFA CFA
Core service loadings loadings

(Includes: Providing shoppers with access to merchandise,

displaying merchandise, giving advice to shoppers on
merchandise, appropriately packaging merchandise for
shoppers to take away, providing delivery options for
shoppers, providing payment options for shoppers)
The core service provided by this store suits my needs. 0.91
The core service provided by this store is reliable. 0.86
I can depend on this store to provide good core service. 0.88
This store provides quality core service. 0.83
The core service provided by this store is superior. 0.76
Reliability 0.92 mean 5.21, std 1.23, Chi-sq 4.78, GFI 0.99,
RMSEA 0.03

Employee service

I receive prompt service from this store’s employees. 0.56

Employees of this store are always willing to help me. 0.71
The employees of this store are never too busy to respond to
my requests. 0.71
I can trust the employees of this store. 0.83
I feel safe in my transactions with this store’s employees. 0.84
Employees of this store are polite. 0.79
Employees of this store give me personal attention. 0.69
Reliability 0.90, mean 4.98, std 1.21, Chi-sq 4.78, GFI 0.98,
RMSEA 0.05

Servicescape

This store has up-to-date facilities. 0.77

The store’s physical facilities are visually attractive. 0.85
This store’s employees are neat and well-dressed. 0.75
The appearance of the physical facilities of this store is in
keeping with the type of service provided. 0.79
Reliability 0.80, mean 5.47, std 1.02, Chi-sq 5.31, GFI 0.99,
RMSEA 0.08

Value for money

This store’s services are reasonably priced. 0.89

This store offers value for money. 0.90
This store provides a good service for the price. 0.82
Using this store is economical. 0.79
Reliability 0.87, mean 5.02, std 1.21, Chi-sq 5.90, GFI 0.98,
RMSEA 0.08

Self–Store image congruency

Consistent with self-image. 0.72

Reflects who I am. 0.82
People similar use service. 0.77
Other users are like me. 0.82
Reliability 0.79, mean 4.21, std 1.26, Chi-sq 0.09, GFI 0.99,
RMSEA 0.01

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construct correlations were examined and compared to the reliabilities calculated

via Cronbach’s alpha in the preliminary data analysis. Correlations ranged from
0.31 to 0.68 and the reliabilities ranged from 0.79 to 0.92. The comparison of indi-
vidual bivariate correlations between constructs revealed that no correlations
were higher than their respective reliabilities. This being the case, discriminant
validity was verified.

Hypothesis Testing
To test the hypotheses, the data were analyzed via partial least squares (PLS),
a general SEM technique for estimating path models involving latent constructs
indirectly observed by multiple indicators similar to that shown in Figure 1.
The model depicted in Figure 1 is specified by two sets of linear relations: the
outer model specifying the relationships between the latent and the manifest
variables (often referred to as the measurement model), and the inner model spec-
ifying relationships between the latent variables (retail store service dimen-
sions and value), and whose interpretation is consistent with standardized
regression coefficients (Chin, 1998; Fornell & Cha 1994; Kroonenberg, 1990;
Lohmöller, 1989).
Table 2 shows the path coefficients between the exogenous and endogenous
variables, average variance accounted (AVA) for, R2, and critical ratios for H1 and
H2 for all stores (all respondents). The individual R2 are greater than the rec-
ommended 0.10 (Falk & Miller, 1992) for all of the predicted variables;
the AVA for the endogenous variables was 0.35. As all of these R2 are larger
than the recommended levels, an examination of the paths’ significance associ-
ated with these variables was undertaken. The absolute value of the product of
the path coefficient and the appropriate correlation coefficient was used to eval-
uate the significance of the individual paths (Falk & Miller, 1992, p. 74).

Table 2. Results for Hypotheses.

Partial Least Squares Results for the Theoretical Model: All Stores.

Path Variance Critical

Predicted variable Predictor variables weight due to path R2 ratio

Perceived value H1 Store service 0.615 0.38 9.57*

H2 Servicescape ⫺0.036 ⫺0.012 0.51
AVA 0.35

Partial Least Squares Results for the Theoretical Model: High Image
Congruent Moderation

Perceived value H3 Store service 0.624 0.367 0.35 6.61*

H4 Servicescape ⫺0.058 ⫺0.019 0.53
AVA 0.35

Partial Least Squares Results for the Theoretical Model: Low Image
Incongruent Moderation

Perceived value H3 Store service 0.564 0.311 0.30 5.13*

H4 Servicescape ⫺0.024 ⫺0.007 0.22
AVA 0.30
*Indicates significance.

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As shown in Table 2, the path variance for H1 met the variance criterion (0.015),
and the bootstrap critical ratio was of the appropriate size (greater than
1.96 ⬍ .05 two-tailed or 1.64 0 ⬍ .05 one-tailed), indicating that the path had
significant positive effect, whereas H2 did not. Therefore, hypothesis H1 is sup-
ported while H2 is rejected.
To test for the moderation effect of self–store image congruency as predicted
in hypotheses H3 and H4, the data were split into two sets based on respon-
dents’ responses to customers’ self-image–store image congruency levels. That
is, respondents who indicated high store image–self-image congruency and
those who responded with low store image–self-image congruency were split
into two groups. Thus, high versus low self-image–store image was obtained
via a split of the scores on the composite score for this construct, similar to that
previously undertaken by O’Cass (2000, 2002) and DelVecchio (2005), based
on a median split of the self–store congruency scale. As such, the relation-
ships hypothesized were analyzed across the two groups. For the high congruent
self–store image group there were 155 respondents (mean score 5.0, range
4 to 7); the low congruent self–store image group there were 92 respondents
(mean score 2.92, range 1 to 3.88). As indicated in Table 2, some differences were
found in the strengths of the relationships across the congruent–incongruent
self–store image groups. These are more clearly delineated in Table 3, which
provides the results of the tests of the differences using a procedure advo-
cated by Chin (2002) and documented by Keil et al. (2000). This approach
treats the estimates of the resampling in a parametric sense, through t-tests.
A parametric assumption is made and the standard errors are taken for the
structural paths provided by the PLS software in the resampling output.
The t-statistics are then manually calculated to determine the differences in
paths between groups. The formula used to calculated differences appears
in Appendix A.
The results of the differences between the strengths of relationships are shown
in Table 3. All t-values ⬎ 1.96 were deemed to be significant for a two-tailed
test at 0.05, Thus, H3 and H4 were supported, as the relationships between
store service and perceived value, and servicescape and perceived value differed
across the image congruent and image incongruent groups.
As indicated in Table 2, there are differences between the congruent and
incongruent self–store image results. Table 3 shows that the relationships
between store service and perceived value were stronger for the high congruent
self–store image customers. There were also significant differences between the
high congruent and low incongruent images for servicescape and perceived
value.

Table 3. Differences Across Store Service and Perceived Value for the High
Congruent Self–Store Image Customers.

High congruency Low congruency

Path Std Path Std

Hypotheses and paths coefficient error coefficient error t-value

H3 Store service-Perceived value 0.624 0.094 0.564 0.110 4.54

H4 Servicescape-Perceived value ⫺0.058 0.110 ⫺0.024 0.108 ⫺2.36

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DISCUSSION

The delivery of retail service has been neglected, particularly in relation to

service delivery, servicescape, and perceived value for money. Although previous
research has examined the service offering from a structural content stand-
point and advocated the important role of service processes in customer evalu-
ations, some argue that the service provided by the employee has a greater
influence on consumer response (see Broderick, 1999; Crosby & Stephens, 1987;
Gwinner, Gremler, & Bitner, 1998).
The findings suggest that the store service provision has a strong effect on
perceived value for money. While the price (or sacrifice) of the offering is known
prior to consumption, value for money is not actually determined until con-
sumption takes place, at which point the benefit becomes realized. This is in
line with the argument of others who claim that processes of the service provide
value to the customers (Christopher, 1996) and that customer value is also derived
from the interactions with service employees (Lee-Ross, 2000; Reynolds &
Beatty, 1999). Interestingly, the retail servicescape did not influence perceived
value strongly.
Sirgy et al. (1997) argue that if the consumer perceives the brand’s image to
be congruent with his or her own or ideal self-image, brand attitudes are
enhanced. In relation to retail stores, the findings do support this claim to some
extent. For example, those individuals who reported high self–store image con-
gruence in relation to a particular store were found to derive value from the
service provided by the store and the store environment. Thus, it would seem that
the compatibility between the store’s image (evidenced by the store’s service)
and the consumer’s image has, in itself, been instrumental in providing per-
ceived value. On the other hand, those individuals who reported low image con-
gruence were, to a much lesser extent, influenced by the store’s service and
environment in their value judgments. This may indicate that patronage by
these individuals occurs with the sole intent of seeking out value from non–image-
related factors such as convenience, price, or availability. Therefore, in their
quest for value, the service provided by the store or the store’s environment is
unimportant to them.
Overall, the findings show that the store service provision contributes to the
way in which consumers perceive the store to provide value for money. This
being the case, marketers of retail stores need to consider how their core serv-
ice provision, service delivered by their employees, and store environment can
be synergistically utilized in order to maximize favorability in the eyes of their
customers. Thus, careful planning and coordination need to be applied to serv-
ice provision in order to balance consistently between these elements. For exam-
ple, often the “service provided” is perceived to be that provided through the
behavior of the store’s employees, and both the store processes and the store
environment need to support the roles of all employees. The customer’s percep-
tion of value for money will be enhanced as benefits clearly begin to overshadow
sacrifice because of what is delivered via the retail service and its environment.
This may in effect sustain customer satisfaction and create repeat patronage.
In theoretical terms, variability between different retail offerings such as
that provided by supermarkets, exclusive department stores, or an online retail
shopping environment may well produce different results across the model.
Therefore, future research could explore the constructs of this study in different

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retail environments in order to determine the aspects of the service that provide
both satisfaction and value for money to customers and which will ultimately
enhance future patronage in different retail settings.

CONCLUSION

Given the complex nature of retail service provision, which largely involves the
integration of service processes, employee actions, and the store environment,
understanding how customers of retail stores perceive such offerings and, more
importantly, how the service provided impacts on their evaluations is of para-
mount importance. The results of this study, while first identifying the signifi-
cant contribution of the retailer’s core service processes, employees, and physical
facilities to the service provision of retail stores, also highlights the significant
role these elements play in the customer’s determination of value for money
and image congruency. Therefore, diligent retailers may be well advised to con-
centrate their efforts on establishing synergy between the elements of their
service provision in order to increase the perceived benefits to their customers.
If they adopt such a customer-centered approach to service design and provision,
they may well find that gratification will be received in the form of secured
future profits. Also, consideration of self–store image should not be neglected in
the retail store context.

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Correspondence regarding this article should be sent to: Aron O’Cass, Newcastle Grad-
uate School of Business, University House, University of Newcastle, Callaghan 2308
NSW, Australia ([email protected]).

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APPENDIX A

Formula for Assessing Path Differences

Spooled ⫽ √{[(N1 ⫺ 1)兾(N1 ⫹ N2 ⫺ 2)] ⫻ SE21 ⫹ [(N2 ⫺ 1)兾(N1 ⫹ N2 – 2)] ⫻ SE22}

Then:

t ⫽ (PC1 ⫺ PC2)兾[Spooled ⫻ √(1兾N1 ⫹ 1兾N2)]

where:

Spooled ⫽ pooled estimator for the variance

t ⫽ t-statistic with N1 ⫹ N2 ⫺ 2 degrees of freedom
Ni ⫽ sample size of dataset for shopping environment preference i
SEi ⫽ standard error of path in structural model of shopping environment
preference i
PCi ⫽ path coefficient in structural model of shopping environment preference i

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