Stephen J. Arnold

Hermeneutics and Consumer Research

This article reviews the nature of hermeneutic philosophy and the assumptions and features of a textual interpretation consistent with this perspective. The relationship of hermeneutic philosophy to the interpretive and critical theory traditions in consumer research is also discussed. Copyright 1994 by the University of Chicago.

Organizational legitimacy and retail store patronage

Abstract The objective of this study is to consider how symbolic acts, such as those emphasized by Wal-Mart, affect retail store choice. Acts with much symbolic meaning include support of community charities, frontdoor greeters, and patriotic displays. In logit analyses of survey data from low-priced department store shoppers in the Atlanta, Chicago, Indianapolis, Dallas/Fort Worth, and Kingston, Canada markets, it was found that being identified as having a strong community reputation not only directly affected store choice, but also moderated the effect of the other determinant price, value, and location attributes.

The impact of buyer dependence on buyer opportunism in buyer–supplier relationships: The moderating role of relational norms

The impact of buyer dependence on opportunism against the supplier is examined in this research. Extant literature provides support for both a positive and an inverse relationship between these constructs. In this research, these competing predictions are subsumed under a more general model where the effect of dependence on opportunism is moderated by the level of relational norms present in the buyer–supplier relationship. Results of an experiment with purchasing managers and one replication provide support for the hypotheses that (a) dependence and opportunism will be positively related under low relational norms, and (b) dependence and opportunism will be inversely related under high relational norms.

Hometown ideology and retailer legitimation: The institutional semiotics of Wal-Mart flyers

Abstract Institutional semiotics revealed a myriad of meanings in a Wal-Mart advertising flyer. Beyond a promise of deep savings on a wide assortment of merchandise, the text and illustrations in the flyer reflect a rich blend of family, community and national norms. This environmental isomorphism simulates a subtly utopian, nostalgic hometown, a place rich in American mythology where citizens achieve a balance between economic and moral pursuits. In this context, the world’s largest retailer is experienced as the neighborly, small town shopkeeper, thereby legitimating itself among its consumer constituency.

An Institutional Perspective on Retail Internationalization Success: Home Depot in Chile

This study utilizes institutional theory to assess the effect of the host institutional environment on the success of internationalizing retailers. According to this framework, retailers succeed in international markets when they adapt their retail format and practices to the salient institutional norms in the host market and achieve legitimation from the relevant social actors. This framework was used in a case study of Home Depots entry into Chile in 1998 and its exit three years later. Findings showed that Home Depot lacked legitimacy in Chile because they failed to offer the range of merchandise and store atmosphere demanded by the traditional family shopping activity, and because their management team did not embed themselves in the broader social network. It was also apparent the competition had anticipated and responded to Home Depots source of competitive advantage and that Home Depots scale was not great enough to command any advantages in the supply chain network.

Market entry effects of large format retailers: a stakeholder analysis

Identifies the effects associated with the entry of a large format (“big box”) retailer into a new market, especially a smaller one. A large format retailer can be a discount department store, category specialist, warehouse club, superstore, supercenter or hypermarket. In order to identify these effects, a review was made of published and unpublished studies. In addition, interviews were conducted among key informants including developers, urban planners and professionals, economic development officers, retail executives and store managers. The result of this research includes a documentation, analysis and discussion of numerous effects, including benefits to the consumer, differences in the demographics of large format store shoppers, rapid growth in the sales and market share of the new entrant, growth in the community economy, growth and decline in various commercial sectors, decline in the economy of nearby markets, creation and losses of jobs, and increases and decreases in market efficiency. Given these effects, suggests implications for each community stakeholder. Listed are a large number of questions for future research.

The impact of a market spoiler on consumer preference structures (or, what happens when Wal-Mart comes to town)

Abstract Traditional market structure theories assume that consumer preferences are fixed and exogenous to the influence of market competitors. An alternative theory from the pioneering advantage literature suggests that a competitor can actually alter preference structures by shifting attribute saliencies in its own favour. The ‘market spoiler’ achieves this result by capitalizing on consumer preference ambiguity. Support for this alternative theory is found in a series of surveys tracking Wal-Marts entry into three North American markets. The results show that the importance attached to different retail store choice attributes change to become more consistent with Wal-Marts particular strengths.

Wal‐Mart in Europe: prospects for the UK

The purpose of this paper is to assess the long‐term opportunity (or lack thereof) for Wal‐Mart in the UK. Wal‐Mart is the world’s largest retailer and the UK market offers a logical next step following Wal‐Mart’s 1997 entry into the European market via Germany. Retail internationalisation is discussed and how Wal‐Mart might enter the UK market. Wal‐Mart’s North American growth is attributed to a unique organisational culture, low cost operating procedures and a significant consumer impact related to the determinant low price, assortment, service and community support store choice attributes. These attributes are discussed in a UK context and conclude that the UK workforce would respond positively to the front‐line empowerment of the “Wal‐Mart Way”. UK consumers also would support the unique Wal‐Mart retail proposition. In terms of efficient supply chains, however, Wal‐Mart will not offer any significant competitive advantage over UK retailers.

Wal‐Mart in Europe: prospects for Germany, the UK and France

Wal‐Mart is the world’s largest retailer with ambitious plans to increase its international sales. Europe is a logical target for Wal‐Mart to consolidate and build upon acquisitions in Germany and the UK. This paper assesses the opportunities for Wal‐Mart in these markets and in France, which has the highest level of sales through food retailers in Europe. While Wal‐Mart has made an impact in both Germany and the UK, it has not been as successful as originally envisaged. Moreover, its growth aspirations have been frustrated by the difficulty in making further acquisitions in Germany and France because of the nature of ownership of targeted companies.

Lessons learned from the world’s best retailers

The world’s best retailers – Ahold, Benetton, Carrefour, Home Depot, IKEA and Wal‐Mart – reflect several common characteristics: inspirational leadership, a motivational organisational culture, innovativeness, adaptability and consumer and community relevant behaviours.