Hacettepe University, Ankara (Turkey [PDF]

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ÍNDICE / INDEX El sentido creativo en la estrategia de marketing: El uso de metáforas como herramienta estratégica Marketing strategy as creative sense-making:Using metaphors as a strategic tool Tomaž Kolar University of Ljubljana (Slovenia) .................................................... 1 La relacıón entre las marcas y la cadena de sumınıstro: Una ınvestıgacıón de las PYMES turcas que recıben apoyo de marca The relation between brand-supply chains: A research on turkish small and medium size enterprises (SMES) receiving brand support Dilber Ulaş Ankara University, Ankara (Turkey) Hatice Çalipinar Hacettepe University, Beytepe, Ankara (Turkey).......................... 21 La fidelización de la marca: Lo qué desean los clientes y lo que podrían echar de menos de la marca del distribuidor. ¿Importa el estilo de fidelización? Focus of brand attachment: What customers love and would miss about their retail brand – Does attachment style matter? Eva Thelen Guenther Botschen University of Innsbruck School of Management (Austria) ........... 39 La imagen turística de las capitales europeas. Un estudio exploratorio a través del Método EPI European capitals tourism image. An exploratory study through EPI Method Enrique Ortega Martínez Universidad Complutense de Madrid (España) Sylvie Christofle Université de Nice Sophia Antipolis (France) Beatriz Rodríguez Herráez Universidad Complutense de Madrid (España)............................. 59

¿Cómo de fuertes y significativas son las marcas de los bancos croatas? How strong and meaningful are croatian bank brands? Durdana Ozretic-Dosen Vatroslav Skare Zoran Krupka Faculty of Economics and Business-Zagreb (Croatia).................. 85 NeuroMarketing: Evaluación de las marcas comerciales. Un estudio sobre la resonancia magnética funcional imaginaria Neuromarketing: Valence assessments of commercial brands. A functional magnetic resonance imaging (fmri) study José Paulo Santos ISMAI - Superior Institute of Maia (Portugal) Sofia Brandão São João Hospital, Oporto (Portugal) Daniela Seixas Oporto University, Oporto (Portugal)............................................ 99 Mercados de gran consumo y lanzamiento de nuevos productos en España 121 Fast moving consumer group market and new product development in Spain Yolanda Yustas Universidad Pontificia de Comillas, Madrid (España) Cristina Rojo Nielsen Company, Madrid (España)............................................. 121 Cómo el sistema de calidad en el punto de venta influye en la calidad de las relaciones y en los resultados del marketing en el sistema de franquicia How pos-system quality influences relationship quality and marketing performance in the franchise system Jonghoon Kim University of Incheon, Incheon (Korea) ....................................... 145 Consecuencias en el comportamiento de la calidad del servicio: Diferenciación del comportamiento sobre las quejas entre las dimensiones de la calidad Behavioral consequences of service quality: Differentiation of complaint behavior among quality dimensions Pinar Basgoze Hacettepe University, Beytepe, Ankara (Turkey) Leyla Özer Hacettepe University, Beytepe, Ankara (Turkey) ....................... 157

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Fabricantes y distribuidores: Desarrollando innovación Manufacturers and retailers: Innovation development Cristina Rojo Nielsen Company, Madrid (España) Yolanda Yustas Universidad Pontificia de Comillas, Madrid (España)................ 173 La adopción y difusión de la innovación en los mercados industriales: Una investigación empírica de las PYMES de Ankara-Ostim Innovation adoption and diffusion in the industrial markets: An empirical research on the small and medium size enterprises in Ankara-Ostim Leyla Özer Hacettepe University, İIBF Beytepe, Ankara (Turkey) Gaye Açıkdilli Baskent Unıversıty, TBF Bağlıca, Ankara (Turkey) .................. 197 Aspectos del marketing de la empresa global en la sociedad de la información Marketing aspects of the global enterprise in the information society Lidia Sobolak & Aleksandra Radziszewska Czestochowa University of Technology (Poland)......................... 219 Las motivaciones y las acciones comerciales de las PYMES mexicanas en los mercados exteriores Motivations and commercials actions of mexicans’ SMES in the international market Claudia Ramírez Carranza Universidad Complutense de Madrid (España)........................... 235 Cambio en los consumidores turcos: Efectos de los factores económicos, demográficos y del macro marketing mix Changing turkish consumers: The effects of economic, demographic, and macro marketing mix factors Öznur Özkan Tektaş Hacettepe University, Beytepe, Ankara (Turkey) Metin Tektaş Dept. of State Economic Enterprises, Ankara (Turkey) ............. 257 Un estudio de la influencia de la Responsabilidad Social Corporativa en la elección de la marca A study on Corporate Social Responsability (CSR) on brand selection Alazne Mujika Alberdi; Iñaki García Arrizabalaga & Juan José Gibaja Martíns Universidad de Deusto, Campus de San Sebastián (España) ..... 277

La importancia de las relaciones personales. Experiencias de los ejecutivos suecos en las negociaciones con ejecutivos españoles The importance of personal relations. Swedish businessmen’s experiences of doing business with spanish counterparts Ellinor Torsein Göteborg University, Göteborg (Sweden) .................................... 299 Valor de marca y estrategias de precios de un producto adictivo Brand value and prices strategies for an addictive product Lourdes Rivero Gutiérrez Rafael Cejudo González Universidad Rey Juan Carlos, Madrid (España) ........................ 319 Los servicios de apoyo en el sector hotelero. Un análisis internacional Supporting services in hospitality. An international analysis Enrique Ortega Martínez Universidad Complutense de Madrid (España) Jean-Pierre Lévy-Mangin Université de Québec en Outanais, Gatineau (Canadá) Beatriz Rodríguez Herráez Universidad Complutense de Madrid (España) .......................... 339 Marketing de la carrera de enfermería: Investigación del nivel de profesionalización como un indicador intrínseco Marketing of nursing as a career: Investigating the level of professionalization as an intrinsic cue Pelin Surucu Ertem Selin Metin Camgoz Hacettepe University, Ankara (Turkey)....................................... 363 Bueno con el dinero: La ética en la banca cooperativa Good with money: Ethics at the co-op bank Khosro S Jahdi Bradford College, Bradford (United Kingdom) Tom Cockburn University of New South Wales, Sydney (Australia) ................... 379 Marketing digital en España: Buscadores y redes sociales Web Digital marketing in Spain: Search engines and social web María Luisa Medrano García Elvira San Millán Fernández Universidad Rey Juan Carlos, Madrid (España) ........................ 389

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EL SENTIDO CREATIVO EN LA ESTRATEGIA DE MARKETING: EL USO DE METÁFORAS COMO HERRAMIENTA ESTRATÉGICA MARKETING STRATEGY AS CREATIVE SENSE-MAKING: USING METAPHORS AS A STRATEGIC TOOL Tomaž Kolar [email protected]

University of Ljubljana (Slovenia) Resumen: Este trabajo investiga el uso de las metáforas como una herramienta para desarrollar estrategias de marketing. La revisión de la literatura realizada señala que los enfoques tradicionales se pone poca atención en el hecho de que el desarrollo de la estrategia de marketing está basado en gran manera en el pensamiento intuitivo y simbólico. Con este fin, se explican aquellas características de las metáforas que indican como éstas pueden afectar el pensamiento creativo estratégico. Básicamente, a través de la transferencia de los significados simbólicos de las metáforas se estimula el sentido creativo y la intuición. Con este propósito se sugiere una vía constructiva y reflexiva. En la parte final del trabajo se expone un ejemplo práctico de una metáfora militar utilizada en el proceso de desarrollo de una estrategia de marketing, seguido de un debate sobre los principios de los usos de las metáforas. Palabras clave: Estrategia de marketing, pensamiento creativo, metáforas, metáfora militar.

Abstract: This paper investigates the use of metaphors as a marketing strategy development tool. A review of the literature indicates how in traditional approaches insufficient attention is paid to the fact that development of the marketing strategy is largely based on intuitive and symbolical thinking. For this purpose we explicate those characteristics of metaphors which indicate how metaphors can affect creative strategic thinking. Namely, through the transfer of symbolic meanings metaphors stimulate intuitive and creative sense-making. For that purpose their systematic, constructive and reflexive use is suggested. The last part of the paper presents a practical example of a military metaphor used in the process of marketing strategy development, followed by the discussion on the principles of such use of metaphors. Key words: Marketing strategy, Creative thinking, Metaphors, Military metaphor

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I. DECISION-MAKING AND SENSE-MAKING VIEW ON A MARKETING STRATEGY

Many authors draw attention to the confusion and lack of consensus when it comes to the concept of marketing strategy. This relates both to the question of its domain as well as that of its content (Greenley, 2001; Robins, 1994). In addition to the domain and content aspects Varadarajan and Jayachandran (1999) delineate the content of marketing strategy from the process of its development. The latter consists of decision activities, application of analytic techniques, and the rules on which decisions are based. They further separate the process of marketing strategy development from its implementation which includes execution, coordination, and control mechanisms. In terms of this separation into the content, processual and implemental aspects of marketing strategy, in this paper we mostly focus on the processual aspect of strategy development, while at the same time we understand marketing strategy as a complex whole in which all of the above mentioned elements exist as inseparably interwoven. As it will become clear from what follows, a too narrow and overly static view on marketing strategy represents one of the main challenges of the traditional approach.1 Critiques of the traditional approach relate to a discussion of the content as well as to the process of marketing strategy development. Marketing mix is often considered as the as the framework or the basis of marketing strategy (see e.g. Foxall, 1981). In this sense marketing strategy is conceived as a decision-making activity, the aim of which is choosing and combining various elements of marketing mix. Critical authors, however, claim that marketing mix is a too narrow framework for understanding marketing strategy. Groenroos (1997) accordingly emphasizes that marketing mix offers an excessively simplified view of the key marketing variables and, therefore, represents an "outmoded tool box", misguiding our attention away from an actual grasp of relations between marketing processes and those who participate in them. The marketing mix syntagma deals solely with the manageable marketing tactical tools and therefore misses the side of marketing strategy which contains the uncontrollable elements – the consumers and the competitors (Robins, 1994). This hinders recognition and preparation of innovative marketing initiatives which are, according to him, the key tasks of strategic marketing. Dennis and Macaulay (2003) designate this problem as a "structural rigidity" of the existing models of marketing 1

By traditional approach we mean the so called "marketing management" approach, which is mechanistic and based on the presuppositions of objectivity, rationality, balance, and harmony in the relation between market participants. It belongs to the paradigm of logical empiricism and is as such opposed to the subjective, socio-political, and "emancipatory" paradigm in marketing (Saren, 2000)

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strategy, recognizable in the lack of their dynamism, creativity, and innovation. Because of their exaggerated formalization and their emphasis on rationality, they "blind" the marketing managers and therefore limit their intuition, reflexivity, and creativity. It is, namely, only the autonomous and personal judgment which enables creative strategic decisions – particularly in the conditions of increased insecurity, incomplete information, and various interests within the company (Brownlie, 1998). The process of marketing strategy development can thus also be understood as a set of disorderly and disconnected processes in which an active participation of many interest groups with different beliefs and "thought worlds" occurs (Frankwick et. al., 1994). The challenges pointed to above imply the need for approaches that would, from the beginning of the process, enable a more integral perspective and openness to different modes of thinking and as such overcome the limits of a traditional approach. One of such approaches is Fodness’ (2005) model of strategic thinking, which seeks to overcome the weaknesses of traditional strategic planning; it consists of the following four dimensions: 1. Thinking Strategies, which include techniques of critical and creative thinking; 2. Strategic Decision Making, which relates to the underlying presuppositions of certain decisions and to the question of why these decisions should be made; 3. Strategic Competencies, which encompass the development of the capacity to discover alternatives and identify the critical factors; 4. Strategy Visualization, which stands for the identification and visual presentation of key strategic elements. If such models of strategy development are to be transposed into practice, we need to understand the concepts and the principles that it either includes or relates to. Apart from the already mentioned improvisation (Moorman and Miner, 1998) which focuses on the behavioural component of the strategy, literature is also rich with concepts referring in a larger extent to the thinking component of the strategy. Andrews and Smith (1996), for instance, stress the important role of imagination in the development of marketing plans. According to them imagination depends on the nature of managers as well as on the characteristics of the process of planning. Brownlie (1998) also stresses the importance of creativity and maintains that a marketing manager should be understood above all as a creative artist, relying much more on managerial judgment than on analysis. This kind of judgment tries to interpret and understand the meaning of information; it is reflexive and critical in the examination of its implicit presuppositions and open to different views of a particular problem. Design of a strategy therefore demands less analysis and

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planning and more thinking which dictates also the use of intuition (Mintzberg, 1994; Kilroy and McKinley, 1997; Enright, 2001). Fodness’ (2005) model and the concepts it deals with point to some important implications for a more thoughtful and creative approach to marketing strategy development. First implication relates to the understanding of the process of strategy development. The process cannot be understood exclusively as a rational, linear, formalized, and scientific, leading to the "only correct" of the given alternatives. Following Green (1998) we thus understand strategy development as a process of generation of important insights about the relations between marketing stakeholders and about the meaning of these relations. Such a process allows marketing managers to make these relations intelligible and explain their strategic significance to others in the company. Only in this way will the marketing strategy realize the two key functions of a business strategy – namely, to direct (show the way) and at the same time animate (motivate, make meaningful) (Cummings, 2002). Such understanding of strategy supports the notion that it relies to a large extent on an intuitive (pre-rational) and symbolic, and not merely a conscious and rational, process. Such a view suggests that marketing strategy can be conceived as a cluster of sense-making activities, where some of them precede and some complement formal (decision-making) process of marketing strategy development (Figure 1). Given that proposed notion of marketing strategy attributes such an important role to abstract concepts, such as for example meaning and sense, it becomes imperative for marketing strategy development to insist on the use of proper techniques and tools that help these strategies in the process of their concretization and evolution. Metaphors represent one such tool. Their potential in marketing strategy development, however, seems to be poorly utilized – in spite of their common use. It is necessary to stress that managers very often use metaphors in their everyday communication (Foster-Pedley et. al., 2005; Doyle and Simms, 2002). Their use, however, is mostly unconscious, "expressive", and directed generally towards the goal of persuasive communication, while a systematic, planned use of metaphors as incentives for creative thinking rarely exists. The main purpose of this paper is therefore to show the usefulness of metaphors as a tool capable of inciting and directing creative thinking during the process of marketing strategy development. Consequently, in what follows we present the characteristics and the principles of metaphor use.

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Figure 1: Marketing strategy as a decision-making and as a sense-making act Organizational context Strategy as sense-making

Assumptions Thought worlds Intuition Pre-rational Symbolic

Mission Corporate objectives

Creativity Reflexivity Judgement Insight Imagination

Analysis: • markets • SWOT

Strategy/plan: • markets • products • tools (4P)

Strategy as decision-making

II. METAPHORS AS A TOOL FOR CREATIVE THINKING Metaphor is a figure of speech which connects two concepts or domains (e.g. "time is money"). Various authors stress different aspects of this connection. Tsoukas (1991) defines the metaphor as a transfer of information between a known and a lesser known domain; Hatch (1997) defines it as an understanding of a certain experience in terms of another experience; and Tynan (1999) defines it as a transfer of a name, of a descriptive expression, or a phrase, onto an object or an act. A transfer of meaning from one domain (e.g. time) onto another domain (money) is therefore an essential characteristic of metaphors. That they suggest a figurative (connotative, symbolic) meaning and not a literal (denotative) one, is another of their essential characteristics. Because of this, metaphors are "partial and incomplete models" (Arndt, 1985) and cannot be true in a scientific sense. They can, however, be "connotatively true" (Hunt and Menon, 1995). The ground of their usefulness lies precisely in the nature of metaphors as imaginatively suggestive forms of a constructive lie (Tynan, 1999). Metaphors can be understood as lenses through which certain phenomena, experiences, and concepts are seen in a new and different way. That is why they are potentially useful as a tool for critical thinking, persuasive communication, and also in attempts to influence behaviour. Rindfleisch (1996) lists metaphors’ fundamental character, their instrumentality, systematicity, selective character, their experiential basis, and capacity to shape thought and action, as their key characteristics. Since these characteristics bear important implications for how metaphors are used, we

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examine them more closely in what follows. Metaphors are fundamental because they represent the basis for thought and the conceptual system. They structure our thoughts, our world-view, and consequently also our reality (Tynan, 1999). They are a fundamental cognitive tool, with which we form the meaning of concepts and phenomena knowable only through language and mediated experience. The concept of time can be explained to a three-yearold, for example, only by way of metaphors (e.g. one hour is like … a cartoon). But it is also scientists and managers who use metaphors in order to concretize and make coherent the abstract world, while developing their conceptualizations of it. Production and mediation of meaning is especially important in strategy development that takes place in uncertain business environments (Hill and Levenhagen, 1995). Foster-Pedley et al. (2005) therefore stress the central role played by metaphors in the articulation of business strategies, while also concluding how managers mostly are not aware of their everyday use. Metaphors are at the same time instrumental, since their characteristics and functions make them useful for many different purposes. For the purposes of this paper it is their function in the process of creative thinking that is the most important. As they move concepts out of their usual contexts into new, unusual, and surprising contexts, the metaphors liberate us from our existing beliefs, incite imagination, and, therefore, stimulate creative thinking (Weick, 2003; Tynan, 1999; Rindfleisch, 1996). It is important to stress here that it is not just in the resemblances between the two concepts but mostly in the differences that stretch "beyond the known resemblances" that the creative potential of metaphors originates (Cornelissen, 2005). Metaphors improve the creative process in an organization particularly in those situations in which there is an overabundance of information in the environment, in the early stages of thinking (at the level of basic ideas and outlines), and when the existing knowledge turns out to be equivocal and the problems badly structured (Hill and Levenhagen, 1995). They can also be used in research and production of knowledge, since they enable articulation of intuitive cognitions. Metaphors, namely, suggest and direct approaches in research (Arndt, 1985), while at the same time enabling the articulation of an implicit into explicit knowledge (Nonaka, 1991). By relying on imagination and symbols, metaphors enable intuitive understanding, which does not demand further analysis, examination, and generalization. That is why they serve as a kind of "trigger" in the process of new knowledge production. The discussed characteristics, however, do not provide a precise answer to the question How to chose the appropriate metaphor and use it as a tool for creative strategic thinking? Unfortunately, literature dealing with this question mostly offers answers to the question What metaphors and what kind of use is not appropriate?, while offering very few concrete instructions for their

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appropriate use. One could, of course, hardly expect the assurance of some formalized and structured algorithm when speaking of creativity. Nevertheless, the use of metaphors can be deliberate and systematic. Tynan (1999) stresses that a carefully deliberated choice of an appropriate metaphor constitutes the first and very important step. In choosing the metaphor one must, above all, avoid two threats. First, the use of literary and dead metaphors, since these, used in a literal sense, no longer provoke thought. Second, a resemblance between the two domains connected by the metaphor that is either too strong or too weak. Many authors, namely, find the difference between two domains to be the precondition for the metaphor’s capacity to provoke (Cronelissen, 2005; Rindflesich, 1996; Ghychy, 2003; Nonaka, 1991; Dahl and Moreau, 2002). Metaphors therefore have to connect two domains with enough in common to ensure interesting resemblances, while at the same time not making these resemblances too obvious and literal. Hunt and Menon (1995) add the so-called conceptual richness as one of the key criteria for selection of appropriate metaphors. Conceptual richness is reflected in the number of concepts which can be compared between the two domains and also with respect to how well these concepts are developed in their original domain. The concept of strategy is, for example, very well developed in the military domain, which makes it conceptually rich and interesting in comparison with marketing strategies. However, the choice of an appropriate metaphor is not enough. It is only the metaphoric transfer between the two domains that ensures the realization of its potential. Metaphoric transfer is a result of cognitive and emotional associations and the resemblances and differences between the two domains (Hunt and Menon, 1995). It has to be actively directed, which, according to Hunt and Menon (1995), involves three principles. First, a good understanding of the research problem. Second, a choice of appropriate dimensions of the transfer. They list four key dimensions, based on which a transfer between two domains is possible: ontological (key concepts), conceptual (key ideas and concepts), theoretical (rules and models that connect the concepts), and value dimension (values and norms). As a third principle Hunt and Menon (1995) cite an explicit and systematic comparison of the selected dimensions of the transfer. The choice of a metaphor is only a trigger of the creative, or thought, process, while the further course of this process has to be more structured, able to foreground differences, and harmonize oppositions. This demands a systematic comparison of resemblances and differences between the domains. A discussion of differences, ambiguities, and paradoxes is especially important in this process, since it is only through such a discussion that a production of new cognitions and meanings becomes possible (Cornelissen, 2005; Rindfleisch, 1996).

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The proposed principles of metaphor use have to be placed into the process of creative thinking, which unfolds in three steps. In the first step, one focuses on the problem and creates a relaxed environment. In the second, central step, one sets the problem aside, which means that one consciously directs the focus away form the initial problem. This is achieved precisely with the use of metaphors, which lead the participants away from a rationally set up problem with the help of an "imaginary scenario" (Maddox et. al., 1987). In this way "what is known is made unfamiliar"; and this enables a new view of what is familiar (Pečjak, 1989). As we take the familiar concepts out of their usual, everyday context, we are able to recognize in them a new meaning (Weick, 2003). This is followed by the third step in which one again focuses on the problem, including a systematic and explicit comparison, an interpretation of new meanings, and their association into a "summary picture" (Coulter and Zaltman, 2000).

III. AN EXAMPLE: MILITARY METAPHOR AND STRATEGIC THINKING In this part, using the example of military metaphor, we show the practical applicability of metaphors in the development of marketing strategy. According to the above mentioned principles of metaphor use, we first determine the problem we will try to "solve" and creatively think about. This problem is stated in the form of the challenges of marketing strategy development that we discussed in the first part of this paper. Accordingly, we define the problem in terms of a consideration of the relations between the active marketing participants, including the basic presuppositions, critical factors, and alternative directions of the marketing strategy. A definition of the problem is followed by a selection of the appropriate metaphor. In our case we have chosen the military metaphor. The latter is, in spite of its common use (Kotler and Singh 1981; Ries and Trout, 1986) and criticism leveled against it (Tynan, 1999; Wyshsall, 2001), very appropriate for the selected problem. Why? Because the domains of business (marketing) and military strategies share many common features (see Rindfleisch, 1996), while being at the same time sufficiently unlike in their comparison to be able to provoke thought (this is confirmed by the split opinion of the defenders and the critics of this metaphor’s use). In selecting this metaphor we have paid special attention to the fact that one should not chose a metaphor based on its truthfulness, but on the basis of its creative potential, i.e. its conceptual richness – which is powerfully expressed in the military metaphor (Hunt and Menon, 1995). Finally, the strength of a metaphor stems mostly from the meaning infused into it by the recipient and we shall try to show how strong the military metaphor can be if we resuscitate and use it in a constructive way.

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In the second step, systematic use of the chosen metaphor demands that one consciously sets the problem aside, or looks at this problem through a "different lens". In our case we present a short outline of the historical development of military strategy (in Appendix) as an imaginative scenario which temporarily leads us away from the problem and offers a view of it in the military perspective. Using this outline we want to avoid the problem of an outdated, stereotypical understanding of military strategy. According to Whysall (2001), the supposed ineffectiveness of the military metaphor is related to a failure to consider it in its contemporary context. Even in the most in-depth contributions the authors mostly refer to von Clausewitz’s classical theory of war from two centuries ago (see for example Kotler and Singh, 1981; Ries and Trout, 1986) and to the wisdom of the two thousand year-old texts by authors such as Sun Tzu (e.g. Ho and Choi, 1997). Pech and Durden (2003), on the contrary, confirm the significance and usefulness of contemporary military approaches such as, for example, maneuver warfare. This brief excursus through the short history of military strategy offers us a different optic for thinking about marketing strategy from the one existing in traditional marketing doctrine. For this purpose we have taken the ontological and the conceptual dimension of metaphors, as they are also suggested by Hunt and Menon (1995), to serve as a starting point for a systematic comparison of resemblances and differences between both domains. Participants in a war, its organizational structure, resources and means for fighting, and, most of all, the military doctrine that reflects the fundamental presuppositions and principles of warfare represent the key ontological entities of the military metaphor. As it is clear from the historical overview, the idea of avoiding immediate conflict and of the importance of logistic activity eventually superseded von Clausewitz's idea of total destruction. Taking this into account we can recognize a certain resemblance with the successful marketing strategies of companies such as IKEA and ZARA who compete against their rivals not by engaging in price wars, but by focusing on a radically different production system in which logistics plays the primary role of ensuring competitive advantages (Kumar et. al., 2000; Mazaira et. al., 2003). We can spot some other resemblances between warfare and marketing with respect to the current trends in the development of their respective doctrines. The military doctrine of information superiority shares many traits with the so called "CRM" (Customer Relationship Marketing) approach in marketing. The latter is to a large extent based on the use of information about customers and their behaviour (Berson and Smith, 2000; Chorafas, 2001). Analysis of the military metaphor is also interesting with respect to the relationship towards consumers. Along these lines, Talbot (2003) claims that this is the point at which the military metaphor "breaks", since it is not entirely clear who would be the consumer in the context of warfare. The basic

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military presupposition – that of conflict of interests – is especially questionable in this view. This, however, makes the military element provocative and stimulates us to reflect on some fundamental presuppositions of marketing strategy. It is a fact that consumers are often disloyal (Reicheld, 1996; Knox, 1996) and increasingly distrustful, cynical, and combative, which is all reflected in the growth of consumer activism and in the increasing number of consumer boycotts (Brabbs, 2000; Micheletti et. al. 2004). We are unable to explain these trends by presuming the existence of a "harmonious marriage" with consumers. The latter is thus a questionable starting point for an effective response to these trends. If a conflict with consumers is an actual reality, then it is necessary to admit its existence, find a better explanation, and a proper response. This then dictates that the existing doctrine of consumer satisfaction be complemented by an insight into the conflictual aspects of relations as well as by a development of strategies for the resolution of the conflicts with consumers. At the conceptual level some of the aspects of guerrilla warfare also serve as an interesting comparison – since marketing also involves the important question of what constitutes effective strategies for the struggle against dominating rivals. As we said above, the strength of guerrilla warfare is most of all in its ideological basis and in its flexible organization. An ideological background and the fact of "merging" with the civil sphere seem to be the points in which military struggle and marketing have nothing in common. Such an impression is, however, deceptive, which is why the comparison between the two offers a lot of inspiration. Such a comparison, namely, opens up an (overlooked) question about how the marketing strategy takes into account and uses the actual social context and the disappearance of a strict limitation between particular spheres in a (post)modern society. It is a fact that consumption itself often has an ideological, cultural, and even political background (see for example Crockett and Wallendorf, 2004), which is very rarely taken into account during the process of marketing strategy development. This is where a large potential lays hidden for the contemporary unconventional challengers of global corporations – as it is attested by the success of Mecca Cola, a product whose competitive strategy was built on an anti-American iconography (Johansson, 2004). Invisibility of operation is another of key concepts in guerrilla activity that can be interestingly compared with the domain of marketing, and that simultaneously bears for it a contradictory and a far-reaching significance. Given that attracting attention, notice, recognition, and awareness constitute their main objective, marketing strategies as a rule tend towards maximum visibility (Kotler, 2003). The idea of "invisible" marketing therefore seems paradoxical. However, as a result of being constantly "bombarded" with an abundance of information, the consumers have started to create a kind of

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perceptual defence to protect themselves from the aggressive mass advertising. A question of how to pierce or avoid their radars with "invisible advertising" is therefore quite appropriate. It seems that in this domain the marketing practice is considerably ahead of the theory. The so-called Stealth (or Undercover) marketing and Tribal marketing are, namely, already frequently used in marketing practice (Kaikati and Kaikati, 2004; Cova and Cova, 2002). Both approaches share the characteristics of operating locally from nearby, the use of unconventional communicational tools (interpersonal communication, opinion leaders, product placement in everyday entertainment and cultural context), and the use of consumers’ social relations. A systematic comparison of the military and marketing domains therefore confirms the existence of a large creative potential hidden in the former. And we are far from having exhausted its dimensions and elements in their entirety. A further comparison of various dimensions and concepts would go beyond the purpose and the limits of this paper, which, however, does not mean that these further elements cannot be relevantly compared. The last phase of metaphor use demands that we unite all the important insights into a unified picture and develop an integral solution for the selected problem. In accordance with our own problem, the solution can neither lie in some conclusive set, or matrix, of "strategic alternatives", nor in some linear and strictly formalized algorithm of the phases of marketing strategy implementation. Rather, it is important to stress the always divergent nature of the outcome of creative thinking. That is why our main goal with the presented vision of marketing strategy is most of all to further a discussion of its elements rather than to suggest a precise and "the only correct" approach to it. It is, namely, easier, says Mintzberg (1994), to adapt the strategy to a variable environment if it is developed as a broad vision. We therefore suggest a further consideration of the marketing strategy through the prism of the military metaphor and do not offer an operationalization of the presented vision in the sense of a conceptual model. Further considerations are especially significant with respect to: • • • •

Further debates on the fundamental presuppositions of the marketing "doctrine" as well as on the meaning of relations between marketing participants, A discussion of some additional key concepts which connect both domains, open up marketing paradoxes, and point to the unexploited potentials of marketing strategy development, A dialectical consideration of the dominant (technologicalinformational) and the inferior (guerrilla) marketing position, and A concretization of strategic implications with the use of current trends and successful marketing strategies as practical examples.

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IV. CONCLUSION A conceptual and practical discussion of metaphors in this paper confirms their broad applicability as a tool for creative strategic thinking. For this reason, metaphors can serve as an effective instrument in marketing strategy development. This, however, demands their thoughtful and systematic use. It is impossible to expect a realization of their creative potential, if metaphors are not used in an appropriate way. In the case of the military metaphor, the metaphor use turned out to be quite a demanding task; nevertheless, it corroborated the meaningfulness of the presented principles. Based on the experience and insights gained through the examination of a given example, we some other principles could also have been added. One of them would have been, for example, that knowledge of the relevant context and content of a particular (e.g. a military) domain represents a necessary prerequisite for a rich and productive metaphoric transfer. Contrary to some doubts about usefulness of a military metaphor, our experience also shows that it is very much alive and relevant; if only we manage to direct its transfer in an appropriate way. Doubt in the basic presuppositions and concepts of the classic military strategy turned out to be especially productive, since it also enabled a different view of strategy in the domain of marketing. It is important to assume an interpretive epistemological perspective when it comes to the question of "recognizing new meanings", since in the objectivistpositivist perspective concepts such as meaning, subjective interpretation, and sense, simply "do not exist" (Hatch, 1997). An interpretive stance is especially important if one defines the production of new knowledge about relations and meanings of marketing participants as the essence of a marketing strategy. Finally, some limits of metaphor use should also be noted. Given that their use introduces subjective meaning, there is always a danger of seeing "what we want to see" with the help of metaphor use, or the danger of mere confirming of our a priori presuppositions. This is why metaphors gain their true validity only through inter-subjective communication (Rindfleisch, 1996). Moreover, metaphors are appropriate particularly as a trigger of the process of creative thinking and in the articulation of intuitive cognitions (Nonaka, 1991; Hill and Levenhagen, 1995), which is why they do not suffice for a development of integral conceptual models. In order to do that, the cognitions and meanings revealed by metaphors have to be systematically interpreted. Since a metaphor always presents a partial truth, many authors advise a simultaneous use of several metaphors (Hunt and Menon, 1995; Rindfleisch, 1996). Following this strategy, we also avoid the greatest danger of metaphor use: its literal understanding, which is nonsensical and potentially misleading. Marketing, of course, is not war, which is why it is unproductive

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to try to establish the truthfulness of this metaphor. It is precisely the "false", the symbolic, aspect of the military

APPENDIX: A SHORT OUTLINE OF THE HISTORICAL DEVELOPMENT OF MILITARY STRATEGY

Although the term strategy itself stems from Ancient Greece, military strategy represents a relatively new concept. The first to write about military strategy in a modern sense was von Buelow in 1799. He understood strategy as the art of leading military operations from the command room with the aid of plans and calculations (not directly from the field as it was the case in military practice up to that time). For him and his contemporaries, the skill of warfare was reduced to geometry (Van Creveld, 2000). War, however, with the central idea of destruction and killing, in its essence denies rationality. That is why a German military theorist of that time, Georg von Berenhorst, defended a completely opposite thesis: namely, that what counts in practice of war is will power, or the moral of the army. These opposing views were overcome by von Clausewitz (1989) who formulated a modern concept of military strategy. For him war was primarily an act of violence, in which raw force is the main factor of victory. The basic goal of military strategy is, according to his conception, a total (material and moral) destruction of enemy forces and the occupation of the capital of the enemy state. Following his conception, war is a continuation of politics by other means which in turn determines its goals and places it exclusively in the domain of the state. Further development of contemporary military strategy at the end of the 19th century is linked by some authors to the American naval theoretician Alfred Thayer Mahan (Talbot, 2003). In his texts Mahan stressed the importance of logistics, preventive strikes, and detention of enemy activity, which had longterm consequences for the concept of military strategy and reflected itself in the World War II. This doctrine relied on the presupposition that it is possible to achieve victory without complete destruction or frontal conflict, in which case the flexible manoeuvring with resources is as important as fire power itself. As a consequence of this doctrine, the states have become an irrelevant factor, the war was globalized, and economic and productive elements have become central to military strategy. As emphasized by the contemporary military analyst Van Creveld (2000), today there are two predominant views on the future development of armed conflicts. The first is represented by the military doctrine of the USA, the so called Revolution in Military Affairs (RMA) which stresses the importance of

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technological and informational superiority. The second is represented in the so called Low Intensity Conflict doctrine (LIC), or fighting in swarms.2 This doctrine has to be used by the states overpowered by the enemy (e.g. Iraq) as well as by the non-state organizations (revolutionaries, guerrilla fighters, terrorist groups, religious movements, cartels, armed bands, and groups of radical activists) which are becoming increasingly important actors in armed conflicts. Unlike the technological-informational doctrine, the doctrine of fighting in swarms foregrounds the importance of ideological, religious, political, cultural beliefs as well as of purely profiteering motives (Arquilla and Ronfeldt, 2001).

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LA RELACIÓN ENTRE LAS MARCAS Y LA CADENA DE SUMINISTRO: UNA INVESTIGACIÓN DE LAS PYMES TURCAS QUE RECIBEN APOYO DE MARCA

THE RELATION BETWEEN BRAND-SUPPLY CHAINS: A RESEARCH ON TURKISH SMALL AND MEDIUM SIZE ENTERPRISES (SMES) RECEIVING BRAND SUPPORT Dilber Ulaş

ulas©politics.ankara.edu.tr Ankara University, Ankara (Turkey)

Hatice Çalipinar

[email protected] Hacettepe University, Beytepe, Ankara (Turkey)

Resumen: Para que una marca pueda ser reconocida y sobreviva en el mercado es necesario contar con una gestión sistematizada de las operaciones de la cadena de suministro. La gestión de la cadena de suministro que incluye todas las conexiones entre los centros producción y consumo, constituye un proceso vital para transportar al mercado los productos a un tiempo y coste óptimo. Cuando la creación de la marca está relacionada con las estrategias de la dirección, la continuidad y la calidad son posibles a través de la gestión efectiva de la cadena de suministro. El propósito de este estudio es investigar y aprender acerca del proceso de creación de la marca y de las cadenas de suministro de las PYMES en Ankara que reciben apoyo de marca por parte de KOSGEB. Palabras clave: PYMES, pequeña empresa, marca, cadena de suministro, gestión de la cadena de suministro Abstract: It is a necessity for a brand to have a systematically operating supply chain management (SCM) in order to be recognized and survive on the market. SCM which include all the connections between production and consumption centers constitute a vital process of conveying branded goods to the market in optimal time, at optimal cost. When the creation of a brand is related to management strategies, continuity and quality are possible by using supply chains management effectively. The purpose of this study is to investigate and learn about the creation processes of brand and supply chains of SMEs in Ankara which are receiving brand support from KOSGEB. Key words: SMEs, small enterprise, brand, supply chain, SCM

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I. INTRODUCTION There is a bidirectional relationship between brand and supply chains. Supply chains of well-known goods are continuous and coordinated. Intensive demands for branded goods provide an effective operation for the managements working according to the density of orders. Therefore, when a customer order is received, a backward data flow occurs and this leads to production. To put it another way, for brands which have no demand problems, the system is initiated from the last part of the chain according to the demand and thus production takes place. Once a coordinated communication is established between the brand and supply chains, the operation field of this system, namely pull system, expands. Furthermore, fast, reliable and effective nature of supply chain (SC) strengthens the brand and makes it well known. However when there is a problem in SC, brand image is affected negatively. In the long run, it may cause harm in matters of quality and trust and may also create cost problems. To summarize, there is a mutual relationship in financial, technical and economic matters between brand and supply chains. Small and medium sized enterprises (SMEs) play a very important role in Turkey. According to the definition of the Turkish Undersecretary of Treasury which is considered the official definition in Turkey, SMEs are grouped into three main groups according to their size as follows: Companies that employ up to 9 employees are very-small-sized enterprises; companies that employ from 10 to 49 employees are small-sized enterprises and companies that employ from 50 to 250 employees are medium-sized enterprises. Their average profile is different from that of SMEs in the European Union or in most other OECD countries in that their average workforce and turnover are much smaller. According to the most recent estimates, the SME sector, including services, accounted in 2000 for: 99,8 % of the total number of enterprises, 76%of total employment, 38% of capital investment, 26.5% of value added, roughly 10% of exports and 5% of bank credit. Therefore, while SMEs dominate the economy in terms of employment, they evidently operate with comparatively little capital equipment, generate relatively low levels of value added, make only a small contribution to Turkish exports and receive only a marginal share of the funds mobilised by the banking sector. Only a small share of SMEs are in the manufacturing sector. According to State Institute of Statistics (SIS) data on 1 January 2001 there were around 210 000 SMEs (1-250 workers) in the sector (99.8% of the total number of the manufacturing firms). Because of the size of Turkey’s informal sector, these data underestimate the relative importance of SMEs in the Turkish economy (OECD, 2004).

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In today’s world where transportation and communication are developing rapidly, it is of great importance to provide modern techniques for SCM so as to lead the brands created by SMEs quickly to the market and receive good results from them after testing. Those SMEs which have created their own brands and supported them with an effective supply chain are going to possess competitive advantage. From this aspect, it is significant to put forth brand creation processes of SMEs and the relationship with supply chains. II. THE APPLICABILITY OF SUPPLY CHAIN MANAGEMENT IN SMES Supply chain management is an integrated management of material, information and money flow that allows the right good to reach in the right time and place at the lowest cost in all systems (Şen, 2006). According to another definition, supply chain is a group of elements involving suppliers, distributors and retail dealers and providing the management of material, good and information flow (credit conditions, terms of payment) amongst them (Kopczak, 1997). It is supply chain’s responsibility to convey the information of products properly in time, and let the customer receive the order in the right time, right amount and quality. If any delay occurs in this chain, then it results in customer dissatisfaction. The benefits of applying supply chain in SMEs (Özdemir, 2004; Chen et al., 2004): • • • • • • • •

Simplifying the process of supply chain and activating the operation, An increase in customer satisfaction, A decrease in stocks and stock costs, Standardization in production and shortening the production process, An increase in quality, An improvement in distribution, payment, order taking and delivering processes, An increase in effectiveness, and The possibility of entering international market.

Those best activating producer-supplier relationship are generally big enterprises such as Tofaş, Ford, Türk Traktör. Even though SMEs have a significant share with a rate of 99.89% amongst all enterprises, still they have limited options for supply, production and financing. Supply chain managements of big and small enterprises are compared in Table 1. The survival and growth rates of SMEs depend on their effective allocation of resources and how they improve channel relations in SC. The critical factor in the success of supply chains is managing the units in the chain so as to let the activities in the supply chain operate simultaneously (Lummus and Vokurka, 1999).

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Table 1: Comparison of Supply Chain Management Practices-LargeSmall and Medium Enterprises CATEGORY Competitive Priorities

Key Strategies

External Control Structure

Internal Control Structure

Goals of Supply Chain Management Processes

SCM by Large Enterprises Market dominance through sustaining large market share. Exert influences in supply chain- both upstream and down stream; strategic alliances with suppliers and distributors. Command and control toward their small suppliers and distributors; collaborate with more dominant suppliers and distributors. Decentralized, structured and highly specialized; multiple core competencies development Operational effectiveness with multiple performance outcome requirements (e.g. cost, quality, delivery time, customer value, and disposal) bigger scopes of information flows and product flows.

SCM by Small/Medium Enterprises Market niches through sustaining profitable market position. Focus on specialized market; build on unique competencies; effective customer/supplier management. Either accepts command and control by OEM or 1 t tier suppliers or utilizes their negotiation strengths; pursue collaboration with other SMEs. Centralized, semi-structured and moderately specialized; specific core competencies development. Operational effectiveness with focused performance outcome requirements (e.g. specific definition of order qualifiers and order winners); smaller scopes of information flows and product flows.

Source Hong, P. and Jeong J., “Supply Chain Management Practices of SMEs: From a Business Growth Perspective”, Journal of Enterprise Information Management, 19 (3), 2006, 292-302.

The way to success for a SME in competitiveness amongst SMEs and big enterprises can be possible by practicing some strategies. As it can be seen in Table 1, SMEs should follow a strategy of orienting towards niche markets. If they are operating as suppliers, they should carefully position themselves as product or service vendors (Hong and Jeong, 2006). Those SMEs selling directly to the customer should make a difference amongst its competitors and orient towards strategic cooperation. Although there is not an agreement in terms of the procedures constituting SCM, the eight procedures determined by the members of Global Supply Chain Forum is generally accepted (Croxton et al., 2001). These are customer

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service management, order fulfilment, demand management, procurement, returns, manufacturing flow management and product development and commercialization. Implementation of these procedures in SMEs requires integration among planning, order and sale. So as to enable integration, the managements must share estimations and plans of stock, production and impact effects with the customer and suppliers. There should also be a good information flow and trust between them. However there are still many enterprises which tend to hide the information since they are afraid of losing the data to their competitors. Since some enterprises hide the data and abstain from using technology, the speed and effectiveness of supply chains decrease. In addition to that, the deficiency of SMEs in technical information limits the use of technology in supply chains. Nonetheless, big enterprises which are at the same line with SMEs confront with the resistance of SMEs even though they support the system with their high technology. To put it another way, there are still some problems in the application of supply chains. The reasons for these problems stem from the resource limitations of SMEs, their desire to protect themselves from competitive advantages of big enterprises and continue to exercise their rights on their own entities (Chen et al., 2004). Some of the problems confronted with while applying SCM in SMEs are the deficiency in supplier management ability, high competitiveness in supply chain, the lack of cooperation in supply chain, information deficiency in customer management, the distance of customers and suppliers and the necessity of investment in information technology amongst partners. At the same time, supply chains’ management lessens the structural advantages of SMEs. Therefore SMEs confront with more managerial and risk problems (Arendt and Wisner., 2005; Easing and Arnold, 2001; Lee and Wang, 2001; Udomleartpresert et al., 2003). The perceptions of supply chain management vary amongst different SMEs. Some researches show that unlike big firms, SMEs view their suppliers not as partners but as a procedure protecting them from production deficiency (Udomleartpresert et al., 2003). Another significant problem SMEs face lately is the necessity of a particular technology due to environment standards. Particularly in developing countries, it is difficult for SMEs to attain new technology, use environmentally-conscious materials, activating recycling programs. They go through difficulties since certificates such as ISO 14 000 have prohibitive costs (Fox, 2005).

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III. THE SIGNIFICANCE OF BRAND MANAGEMENT IN SMES Brand is defined as the names, symbols or differentiating logos that give an identity and character to the product determine the identity of the goods or services and enable its separation from the competitors (Kotler, 1995; Czinkota et al., 1997). Differentiating signs are the words, numbers, letters or drawings that are presented together with the shape or package of the product. Many SMEs mistakenly assume that brand is simply the logo or design on the package of a product. The reasons for the significance of brands are that they increase the sales and customer loyalty, offer quality, trust, service web, spare part support, enable the customer to look for his/her rights in case of dissatisfaction, create a difference amongst similar products which resemble each other in terms of their functions (Baynal and Boran 2007). Also since online shopping increased and there emerged a tendency to choose well known brands so as to eliminate risks and because brands offer quality and value when compared to other generic products, brand management gained importance. SMEs operate as industrial buyers (producers, agents). Prior to buying technical and complicated high cost industrial products, they give importance to research, quality, comparison, facilities of payment and also they take into account firm reliability, after-sales service, guarantee, technical support, regular maintenance and repair from the suppliers. In short, when it is risky to buy the product, brand and firm reliability come to the stage (Balta, 2006). Knowing how the SMEs in Turkey perceive branding is important in terms of understanding why they do not give enough importance to marketing communication. In the “Market Potential Research” carried out by the Researchers Association, 33 percent, the largest part, of the 270 SMEs replied to the question “What does the workplace’s becoming a brand mean?” was “high quality production/high quality product”. This data shows us that most of the SMEs in Turkey consider branding as high quality production. SMEs’ perception of branding is not only contrary to the definition of branding, but also shows that the businesses’ long-term plans are wrong and unachievable. Branding is not only high quality production. Today, as literally everybody can perform high quality production, branding is adding intangible values to high quality production. The tool used in order to add these intangible values is marketing communication. SMEs’ mistake in correct perception of branding indicates that they are lacking of knowledge. SMEs in Turkey should be informed on marketing communication and branding, as an essential point with respect to developing the economy of the country and taking part among national and global brands (Bozkurt, 2004). Brand management is the decision of an enterprise to make use of brand strategy not as a one-time activity but accept it as an eternal approach of its

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marketing policy. First of all, it is the nature of SME owner which will enable that approach. Generally the owner and manager of the enterprises are the same person in SMEs and this person undertakes a significant role as the manager in determining the structure of the organization and the scope of brand management application. As an entrepreneur, the manager himself is actually the brand and he plays a direct role outside in providing brand communication. Compared to big enterprises, in SMEs the role of enterpriser to create a brand is greater and the integration between the enterpriser and brand is stronger. Brand strategy is based on differentiating the product amongst its competitors and making it more valuable in the eyes of the customer. It takes time to create a brand. A conscious effort needs to perform while introducing the brand. The management owner has to explain this to everyone in the organization, relay the organization and prepare the budget even though it may be hard. Most of SME owners blindly want to create a well-known brand. In order to accomplish this, it is significant to note in marketing budget that brand creation is an important goal. SMEs can use their brand names in their cars, front of the buildings, in packaging, truck fronts and as many communication instruments as possible. They can make use of internet, tabloid and newspaper ads, brochures, and billboards. By receiving necessary financial supports, they may attend domestic and overseas fairs and make use of public relations. In order to acquire a different character from its competitors, SMEs have to perceive customer needs well and designate and submit products according to these needs. They should try to find out through which qualities they can find a place in the minds of customers. This is called positioning or perception differentiation. In short, perception differentiation is having a position in people’s minds with a different quality. A strong brand can be seen as a good way of differentiating from the competitors. For that purpose a suitable person can be selected as the authorized personnel in performing daily-based brand management duties. The possibilities of establishing cooperation with a strong brand or creating a joint brand may be investigated. If brand name is better known than the name of the management, SME may consider changing its name to the brand name. Thus, brand awareness may be heightened. So as to maintain customer awareness, SME should focus on one brand and give importance to logo, packaging and labelling. Another method can be creating a difference amongst the competitors through constructing supply chain.

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IV. THE ROLE OF SUPPLY CHAIN MANAGEMENT IN BRAND CREATION Nowadays the process of brand creation and SCM has gained significance not only for the enterprises producing consumption goods but also for enterprises manufacturing industrial goods. In the process of brand creation, SME has to create a reliable management image and entertain successful and continuous customer relations. At the same time it is important for a SME to establish a relationship based on mutual trust with the members of distribution channel and physical distribution firms (seller, transporter etc.). Also, the structure of the market SME operating on should also be taken into account during this process. It is significant for a SME to be innovative in all phases from design to production and to produce high quality, original and differentiated products. Compared to big enterprises, SMEs have limited budgets thus they cannot spend huge amounts of money in the process of brand creation. Therefore it is important to support their brand creation processes with SCM. In fact supply chain management in brand creation covers managing all the processes coming from suppliers to production centers and from production centers to consumption centers. If the development of Japanese brands is taken into account, zero stock is aimed in their philosophy of “Just in Time” which intends to respond to customer needs as quickly as possible. The Japanese have introduced wellknown brands especially in automotive, electronics and machine industries. Amongst these brand names, multinational ones such as Toyota, Nissan are all attached to supply chains functioning in different levels in the system. Automotive manufacturers such as Toyota have decreased the number of its suppliers and chosen a limited number of competent, loyal suppliers, established long-term relations based on mutual trust and operated with minimum stocks (Wu, 2003). In SCM, all of the managements forming each of the circles in the chain act as the potential customer of the management in the next circle. Also, by integrating all the elements in the chain, a synergy is created in the system integrity and effectiveness is accomplished. In such a case different brands that are created by SMEs taking parts in each circle feed one another in the system integrity.

V. RESEARCH METHOD 5.1. Significance, Purpose and Scope of the Research

At the present day the topic of whether SMEs can or cannot create brands is under discussion. In an increasingly competitive environment, in order to be

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the first brand recurring in people’s minds, to be well known and ensure awareness, an enterprise has to lead a successful brand management. When the suppliers transmit a high quality product to the producer in a timely manner, the producer’s capacity to compete in the market increases. Therefore it is significant for SMEs to cooperate with the right suppliers in brand creation process. This research aims to investigate brand and supply chain creation processes of SMEs receiving brand support and determine the relationship between them. For that purpose an interview has been held amongst 10 SME owners located in Ankara, following a strategy of brand creation. These 10 SMEs who accepted interview received support from KOSGEB3 in 2004-2006 are asked detailed questions in depth interview regarding their brand creation process and supply chain managements. 5.2. Data Gathering Method and Sampling Selection

Depth interview and survey methods are used for data gathering method. The reason for using purpose sampling in this research is to benefit from the views of SME owners who are considered to have sufficient information and experience regarding the subject matter of the research (Şimşek and Yıldırım, 2004). The reason for using typical sampling which is a type of purpose sampling is to determine the most typical ones when an innovation or activity is wanted to be introduced. The aim is not to make generalizations. It is to inform the ones having limited information about the process by interviewing and making use of the sights of SME owners who have an idea of brand creation processes and supply chains. In this study, a depth interview is made with 10 SME owners working in Ankara. The owners of the firms were called by phone; they were given information about the purpose of the study and asked for an interview. A face to face interview lasting one hour was made with these ten enterprise owners who had accepted the interview and who were available in Ankara at the time of interview, September 2007. The questions were previously prepared. The final design of the interview form was shaped after interviewing two SME owners. SME owners were asked the questions related to management, brand and supply chains. The owners were informed beforehand that the information they provided were not to be shared if they did not want. Also they were told that their names and the names of their enterprises would not be written on the report. In order to ensure validity of the research, the findings were attained from a variety of SME owners. Afterwards these findings were shared with the interviewees and also the sights of other researchers working on the same field were consulted. In order to ensure 3

KOSGEB (Small and Medium Industry Development Organization), a non-profit semi-autonomous Organization was established by the Government by a special Act No:3624. in 1990. KOSGEB developed new programs aimed at strengthening the SME's component of Turkey’s industrial structure

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31

reliability, an interview form where the research questions are clearly stated was used. The data gathered was quoted directly without any comments and, interviews were made with two researchers. 5.3. Findings of Research 5.3.1. Information about SMEs

SMEs in the sampling work in glass industry, ready wear-textile, aluminium frame, construction, electrics, electronics, work and construction machines, machine-decoration construction, analyze equipment and leather-confection sectors. Eight SMEs export to different countries. The detailed information regarding these enterprises having at least for ten years of is given in Table 2. Table 2: Information About the Procedures Categories SMEs

SME 1 SME 2

Establis hment

Date

Number of Employees

Sector

Capacity Utilization Rate

Starting Date of Exportation

60-70%

2006

Russia, Ukraine, Kazakhstan

Low

2004

EU Countries

Countries The Goods Are Imported To

1992

250

Glass

1994

55

Textile-Ready Wear

Low, once a month

1996

Russia, Uzbekistan, Lebanon, Israel, Turkmenistan, Tajikistan

SME 3

1990

25

Aluminium Frame

SME 4

1990

3

Construction

70%

None

None

SME 5

1998

13

Construction, Lift Manufacturing

65%

2003

Greece, Azerbaijan, Iran, Brazil

SME 6

1987

45

Electrics Electronics

100%

SME 7

1997

50

SME 8

1984

80

SME 9

1982

15

SME 10

1940

100

Work & construction machines Furniture Decoration Construction Analyze equipment, chemistry etc high temperature lab Leatherconfection

Georgia, Albanian, Russia, Israel, Iraq, Saudi Arabian. Italy, Spain, Kazakhstan, Dubai, Azerbaijan.

%65

2000

100%, contracto r

1999

Cyprus, Kazakhstan, Azerbaijan.

100%

1995

Algeria, France, Germany, Tunisia, Italy, Thailand, Slovenia, Egypt, Pakistan.

100%

None

None

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5.3.2. Evaluating the Data and the Findings

The data of the research were summarized in Appendix 3 and 4 according to the themes in interview form. The SMEs interviewed were each given a number and listed. Thus, the speeches of ten SME owners were compared, the collected findings were organized in a table format. The first question in the interview aimed to discover the perceptions of SME owners regarding “brand supply chain”. Next questions are related to the significance of supply chain in the process of brand creation, how to form a SC, the gaining of it to the brand, the activities SMEs are engaged with for introducing their brand and the processes after support. All of the SMEs have registered their brands at different times. SMEs definition of a brand is “being the first name in the market that procures in customers’ minds, image, and recognition, being strong and long-lived”. Supply chain is explained as “the relations of SMEs with the enterprises they receive input during their activities”. The managers did not take into account the importance of the stage of transmitting goods to the customers, bidirectional data flow and technological substructure. SME owners received support from KOSGEB in 2004 in order to attend overseas fairs, advertise, and introduce their brands between the years of 2004 and 2006. The process of after support is explained this way by SME 1’s owner: “After support, we made a deal with a good agency. The catalogues and brochures both in English and in Turkish were prepared and posted to chambers of industries. We participated in the fairs abroad. In fairs there is a huge participation of the whole glass technologies and it is not difficult to find a supplier. Our supplier is exclusive and it is quite a well known firm in Turkey. We make a yearly contract. The main reason for our growth is that we have a successful supplier. Our supplier is a legendary firm in the country and thus it is our biggest advertisement.” SME 1’s owner also emphasized the need for forming memberships in various associations and clubs so as to attract new customers. The activities aimed at increasing brand recognition are publishing catalogues and brochures, sending them to customers, advertising in sector magazines and local TV channels, sending personal sample copies and participating in the fairs overseas. SME 4’s owner stated that they received orders from abroad thanks to their ads on local TV channel but they were unable to meet these orders because of their limited capacity. The owner of SME 5 who is an interim supplier of lifts said that they had sent the products to colleges so to let the products get recognized amongst the students who may be their future personnel. SME 6’s owner stressed the importance they gave to research and development, their preference to work with reputable suppliers equipped with necessary qualifications helped them to obtain a good position in the market. SME 7’s owner stressed the importance of brand and also he said that to enable variety in production it is necessary to make high quality inputs. SME 8’s owner summarized their main

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principles this way: “High quality production, tolerant service and safe shopping”. Six SME owners answered the question regarding the effect of brand on supply chain by stating that first of all, supply mattered more. They said that without supply chain, brand could not be real. Also, according to them, operating with high quality input increased the guarantee of product and strengthened the brand. Three SME owners who believed the priority of brand creation asserted that being a well-known brand increased their brand recognition in the market. They also said the supplier web could be formed after creating a brand since a good brand was already followed by suppliers. The question “What is the rule of branding?” is answered as differentiating, having shops, giving importance to research and development, being the first name procuring in minds, creating image, customer satisfaction, high quality and forming trust. According to SME 2’s owner the rule of branding is related to increasing the number of shops and he also states that regular supplies enable a rise in the capacity. According to SME 3’s owner “When you manage to define what you do, then you become a brand. It is only possible if people recognize your job upon hearing your name”. SME 3’s owner answered the question regarding supply by stating that there was not a raw material source in the country and import raw materials were very expensive due to all the quotas and taxes. Since high quality is important and there are no suppliers in the country, raw material is imported. Even though toy elements were asked from China, this could not be actuated due to the high cost and low capacity. The increase in the sectoral competitiveness leads to a decrease in quality. It is because in the tenders called for, the firms which ignored children health and safety by using low quality raw material gave the lowest price offers and thus their proposals were accepted. Since there is not an effective supervision on the market, reliability comes after money. The owner of SME 4 stated that final customers directed him the question “Whose materials are you using?” This, according to him, proved the significance of suppliers whom they worked with for the process of brand name creation and for customers as well. SME 9’s owner noted that in Turkey they were the sole producer of the particular good and they gave much importance to exportation and quality. Especially even though it was possible to attain the raw material from China at a lower cost, he said that they continued getting it from Europe so as to maintain their high quality. Their internet web sites initiated overseas online sales. In domestic sales, since their main customers are university laboratories, they mostly contact with academic personnel. SME 10’s owner asserted that they were the ones who gave the first sectoral quality certificate, they produced their own raw material and they continued their production by paying attention to customer needs together

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with factorizing. Al of these factors helped them to obtain a good position on the market.

VI. CONCLUSION SME owners stressed their desire to establish long-term and reliable relations with suppliers for the benefit of supply chain, the importance of high quality inputs, quickening the order receiving-giving processes, the necessity of lessening the stocks and focusing on customer satisfaction. SMEs who give importance to quick delivery of orders prefer fax, phone and internet orders and they take confirmation for sure. They say that since some inputs are imported, the stages last longer, the supply process is lengthened and costs increase. Nonetheless it was found out that three sectors provided its basic input from monopolies and they did not have flexibility in supplier selection. Also, seven SME owners stated that they did not take into account the input prices to create brand quality and continuality. Other three SME owners asserted that low prices did actually matter and thus lately they have started to prefer the suppliers in China. It is significant for SMEs to make a difference amongst its competitors in the process of brand creation. The SME owners who were interviewed regarded themselves as better as and more distinct than their competitors in terms of research and development, design, production, after-sales services, customer relations, price and variety provision. SME owners were asked the question regarding the benefits of supply chain for the brand. Receiving supplies from managements having a strong quality policy enables the wellness of a brand, increase in quality and trust and enables growth. Supply chain and brand are related to one another. They both influence each other. For SMEs, central pillars of economy, brand creation is closely related to developing these brands and a continuously effective supply chain management. The efficiency of backwards data flow and physical flow both from the managements providing inputs to production units and from production units to customers depend on quality and trust elements. The importance SMEs give to brand name in suppliers so to make high quality production helps their brand recognition on the market. In an increasingly competitive environment, in order to lessen the risks, industrial buyers take into account the input names used in production phase. For SMEs, brand recognition can be possible through entrepreneurships of the managers, presentation, and advertising, differentiating amongst its competitors, providing quality in supplies, and selecting certificated and qualified suppliers to work with.

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In the research it has been detected that SMEs operating in izoler glass industry, ready wear-textile, aluminium frame, construction, electrics, electronics sectors registered their brands soon after their establishment, they gave importance to brand name creation and since they manufactured decent branded products they did not have problems in supply phases either. Those SME owners who trusted their brands claimed that both the suppliers and customers themselves found their firms. Even if SMEs confront with capital insufficiency, once they maintain their high quality policy, they make a difference amongst the competitors, make use of internet, select qualified suppliers and establish a cooperation with a successful enterprise until they create their own brand, even after finalizing the cooperation then they will be able to continue their own activities as a well-known firm.

VII. REFERENCES AREND, R. J. & WISNER J. D. (2005), “Small Business and Supply Chain Management: Is There a Fit?”, Journal of Business Venturing, 20, 403-436. BALTA, N. F. (2006), Endüstriyel Pazarlama, Nobel Yayın Dağıtım. BAYNAL, K. & BORAN S. (2007), “Rekabette Marka Oluşturma/Markalaşma, Kalite İle İlişkisi ve Türkiye Açısından Önemi”, MARKATEK 2007-Marka Kalite ve Teknoloji Yönetimi Sempozyumu, 18-19 Mayıs, Gaziantep, 83-90. BOZKURT, İ. (2004), “Communication Focused Marketing. Istanbul: Mediacat. Researchers Association, Marketing Potential Research. CHEN, H., THEMISTOCLEOUS M. & CHIU K. (2004), “Approaches to Supply Chain Integration Followed By SMS: An Exploratory Case Study”, Proceedings of the Tenth Americas Conference on Information Systems, New York, August. CROXTON, K.L., DASTUGUE-GARCIA, S.J., LAMBERT, D.M, & ET ALL (2001), “The Supply Chain Management Process”, The International Journal of Logistics Management, 12 (2), 13-35. CZINKOTA, R.M., Kotabe M. and Mercer D. (1997), Marketing Management, Text and Cases, Blackwell Business, U.K. ESSING, M. & ARNOLD, U. (2001), “Electronic Procurement in Supply Chain Management: An Information Economics-Based Analysis of Electronic Markets”, The Journal of Supply Chain Management, 37, 43-49. FOX, T. (2005), “Small and Medium Sized Enterprises (SMEs) and Corporate Social Responsibility: A Discussion Paper, June. HONG P. & JEONG J. (2006), “Supply Chain Management Practices of SMEs: From a Business Growth perspective”, Journal of Enterprise Information Management, Vol 19, No 3, 292-302.

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KOTLER, PHILIP (1995), Marketing Management-Analysis, Planning, Implementation and Control, 8th edition, New York, Prentice Hall. KOPCZAK, L.R. (1997), “Logistics Partnership and Supply Chain Restructuring. Survey Results From The US Computer Industry” Production and Operations Management, 6 (3), 226-247. KRAKE FRANK B.G.J.M. (2005), “Successful Brand Management in SMEs: A New Theory and Practical Hints”, Journal of Product & Brand Management, 14/4, 228-238. LEE, H. L. & WHANG, S. (2001), “E-Business and Supply Chain Integration”, Standford Global Supply Chain Management Forum, W2. LUMMUS, R.R & R.J. VOKURKA (1999), “Defining Supply Chain Management: A Historical Perspective and Practical Guidelines”, Industrial Management & Data Systems, 99 (1), 11-17. OECD (2004), “Small and Medium Sized Enterprises in Turkey, Issues and Policies”, OECD Publications, http://www.oecd.org/dataoecd/5/11/31932173.pdf:28

ÖZDEMIR, A. İ. (2004), “Tedarik Zinciri Yönetiminin Gelişimi, Süreçleri ve Yararları”, Erciyes Üniversitesi, İktisadi ve İdari Bilimler Fakültesi Dergisi, 23, 87-96. ŞEN, E. (2006), “KOBİ’lerin Uluslararası Rekabet Güçlerini Artırmada Tedarik Zinciri Yönetimin Önemi”, T.C.Başbakanlık Dış Ticaret Müsteşarlığı, İhracat Geliştirme Etüd Merkezi, Ankara, Ekim. ŞIMŞEK, H. & YILDIRIM A. (2004), Sosyal Bilimlerde Nitel Araştırma Yöntemleri, Seçkin Yayınevi, 4. baskı, Ankara UDOMLEARTPRASERT, P., JUNGTHIRAPANICH, C. & SOMMECHAI, C. (2003), “Supply Chain Management – SMEs Approach”, IEEE, 3. WU, Y. C. (2003), “Lean Manufacturing a Perapective of Lean Suppliers”, International Journal of Operations&Production Management, 23 (11), 1349-1376.

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APPENDIX 1: INFORMATION ABOUT THE BRAND

37

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APPENDIX 2: INFORMATION ABOUT SUPPLY CHAIN

Production According To Order (PAO), Materials Requirements Planning (MRP), Raw Material Stock (RS), Finished Product Stock (FS), Delivery in a Short Time (DST)

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LA FIDELIZACIÓN DE LA MARCA: LO QUÉ DESEAN LOS CLIENTES Y LO QUE PODRÍAN ECHAR DE MENOS DE LA MARCA DEL DISTRIBUIDOR. ¿IMPORTA EL ESTILO DE FIDELIZACIÓN?

FOCUS OF BRAND ATTACHMENT: WHAT CUSTOMERS LOVE AND WOULD MISS ABOUT THEIR RETAIL BRAND – DOES ATTACHMENT STYLE MATTER? Eva Thelen [email protected]

Guenther Botschen [email protected] University of Innsbruck School of Management (Austria) Resumen: Hasta ahora las investigaciones sobre la fidelización estuvieron restringidas al análisis de las relaciones interpersonales. El objetivo del estudio es explorar las relaciones de fidelidad entre el consumidor-distribuidor desde el punto de vista de la marca del distribuidor como un complejo fenómeno social. Para ello se seleccionaron 40 mujeres clientes de dos marcas de distribuidor (un distribuidor de moda y una cadena regional de supermercados) con una elevada fidelidad hacia la marca y diferentes estilos de fidelización. Mediante entrevistas exploratorias se identificaron los aspectos de la marca que favorecen la vinculación a la misma. Para evitar el olvido de algunas características de la fidelización se utilizaron diferentes escenarios. Los resultados de la investigación indican que las relaciones que los clientes establecen con las marcas de distribuidor son múltiples e integran todos los elementos de dicha marca. Se pueden encontrar diferentes estilos de fidelidad. Palabras clave: Marca de distribuidor, Relación Consumidor-Distribuidor, fidelización de la marca, elementos de la marca. Abstract: Hitherto attachment research was restricted to the analysis of interpersonal relationships. This study aims at exploring attachment in consumer-retailer relationships from the view of retail brands as complex social phenomena. By a screening procedure 40 female customers of two retail brands (an exclusive fashion retailer and a regional supermarket chain) were selected, who showed high brand attachment and different attachment styles. Exploratory interviews were conducted to identify brand elements customers feel attached to. Separation scenarios were used to reveal elements that would be missed. Findings suggest that the relationships, customers form with retail brands, are manifold and comprise all elements of the retail brand. Differences with respect to attachment styles could be found. Key words: Retail Brand, Consumer-Retailer Relationships, Brand Attachment, Brand Elements

41

I. INTRODUCTION With the growing realization that brands are one of a firm’s most valuable intangible assets, branding has emerged as a top management priority in the last decade. Given its highly competitive nature, branding can be especially important in the retailing industry to influence customer perceptions and drive store choice and loyalty (Ailawadi and Keller, 2004). In recent years, more and more retailers have seen the importance of branding and have recognized the need to adopt distinctive positioning within their marketplaces. Branding and brand-based differentiation have been accepted as powerful means for creating and sustaining competitive advantages. Retail branding occupies a special position between pure product branding (tangibles) and pure service branding (intangibles). One of the most critical retail services - namely the assortment - is tangible, for instance. On the other hand, the overall service is intangible. Palmer (1996) explains that the characteristics of services have led in the past to relationship marketing being considered one of the most important marketing streams, while branding strategies were developed for goods (manufacturing companies). Relationship marketing has received a lot of attention within the last decades. Berry (1983) and Grönroos (1990) stress the importance of maintaining and enhancing consumer relationships. Research and development of theory in this area mostly deals with the analysis of social links formed between people, either in business-to-business contexts (Evans/Laskin 1994; Williams 1998; Hunt et al 2006), the service sector (Dall’Olmo Riley/ de Chernatony 2000) or both (Durvasula et al 2000). Branding and relationship marketing were always two separate streams until recently researchers have noted that consumers differ not only in how they perceive brands but also in how they relate to brands. Fournier (1998) suggested that people sometimes form relationships with brands in much the same way in which they form relationships with each other in a social context. This article has already been characterized as a modern classic (Ostergaard 2002) and subsequent research on consumers and brands that build on the relationship idea is emerging (Ji, 2002; Kates 2000). Despite the growing interest, work in this area is still fairly limited and completely missing with respect to retail brands. With an increasing convergence of these two streams the retail sector - which combines the characteristics of both services and goods - is predestined to follow both marketing approaches.

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Eva Thelen & Guenther Botschen

With her view of consumers taking a more active role in the creation of brand meaning, Fournier provided an extension to the modernist perspective of branding, which ascribes the active brand creation activity to the firm, and a passive, receptive role to the consumer. However, up to now brand relationships in the literature have been viewed primarily from a dyadic, consumer towards branded object, view. In contrast to this restricted view, Mühlbacher et al (2006) proposed an integrative conceptualization of brands as complex social phenomena, which covers the interplay between the various brand components and social actors, who continuously develop brand meaning. They consider brands to comprise three closely interrelated concepts: brand interest groups, brand meaning, and brand manifestations. People and organizations, who are interested in a brand, form the interest group of a brand. Members of a retail-brand interest group may, for example, encompass employees, customers and sympathizers of the retailer, customers and sympathizers of competitive retailers, suppliers of products or services, abutters, politicians, and journalists. Brands are subject to a continual, ongoing process of discourse among the members of the interest group. Brand meaning emerges, is reinforced, or changed within this process. Brand meaning becomes subject to experience through the manifestations of the brand, which are socially constructed by the members of the brand interest groups, using, consuming, and co-producing them. Following this perspective, customers may form various relationships with a retail brand. Relationships may as well be formed with persons, objects, places, and activities who or which constitute (central) manifestations of a retail brand. With regard to the brand interest group, we know from relationship marketing literature (e.g. Weitz and Bradford, 1999) the prominent role sales personal has for building strong personal buyer-seller relationships. Relationships to other members of the brand interest group have been neglected. With regard to brand manifestations, members of the interest group might build up relationships with different manifestations of a brand. They might even produce their own brand manifestations, like brand rituals, which help strengthen the relationship. In order to be able to uncover relevant retail brand relationships all three components of a brand must be taken into consideration. However, also critical positions towards relationship marketing exist. RM has not only been accused of being over-conceptualized and underdeveloped empirically but its appropriateness to all customers has been questioned (Barnes and Howlett, 1998; Fournier et al., 1997; Price and Arnould, 1999). Indeed concerns have been raised in the literature as to whether some customers desire to forge relationships with companies (Sheth and Parvatiyar, 1995; Pels, 1999) or attach value to these relationships (Buttle, 1996).

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43

Therefore, it may be neither possible nor profitable to create close, personal and long-term relationships with all consumers (O'Malley and Tynan, 2000). It is highly relevant to identify those customers who are likely and willing to form a relationship. Clearly, not all customers will maintain or even desire long-term relationships with a retailer or its employees. Some customers may appreciate attention from staff, for example, inquires about their health or families, while others may consider these inquiries an invasion of privacy (Barnes 1997). Individual differences in personal relationship behaviors and outcomes have been successfully explained by attachment theory (Bowlby, 1982; Ainsworth, 1982). Originally the theory was aimed at explaining child and adult psychopathology in terms of nonoptimal relationships between children and their caregivers. Attachment theory states that attachment styles are formed in childhood based on early experiences with caregivers which influence a person’s expectations, emotions, defenses, and relational behavior in all close relationships throughout a person’s lifespan. Research has converged on the use of two dimensions, avoidance and anxiety, to describe attachment styles (Brennan, Clark, Shaver, 1998; Fraley, Waller 1998) Successful theoretic extensions from early childhood to adolescent (Main et al 1985) to adult (Hazan and Shaver 1987), peer (Asendorpf and Wilpers, 2000), work (Hazan and Shaver, 1990) and business (Paulssen and Fournier, 2005; Thomson and Johnson, 2006) relationships suggest great promise in the potential for attachment theory to contribute to our understanding of consumer-retail brand relationships. The goal of our research is to examine whether attachment theory turns out to also provide an appropriate framework for understanding differences in customer- retail brand relationships. The objectives of this study are to analyse the elements of retail brands consumers are attached to (Brand Interest Group: Owners, personnel, other customers…/ Manifestations: Products, Buildings, Activities/ Meanings: Personality, Competences, Attitudes, Values…) and to find out whether there is an impact of attachment style on the focus of brand attachment.

II. THEORETICAL BACKGROUND 2.1. Retail Brands as complex social phenomena

Although the successful creation and management of brands is, nowadays, considered to be the essence of an enterprise, there is no common

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Eva Thelen & Guenther Botschen

understanding of the brand concept. One major stream of conceptualizations in the literature ranges from viewing a brand as a marked product, or as a bundle of features (e.g. Kotler, 1991; Park and Srinivasan, 1994), to defining the brand at a corporate level (e.g. Aaker and Joachimsthaler, 2000; Kapferer, 2004; de Chernatony and Harris, 2000; Hatch and Schultz, 2001; Hatch and Schultz 2003). Brands are considered being material objects comprising also immaterial components, and are carriers of the identity of their creators. Consumer research, on the other hand, has put brands into the domain of the consumers. While some authors refer to brands as individual consumers’ cognitive concepts, images, and beliefs (Keller, 1998; Keller 2003; Aaker, 1997; Troiano, 1996), others contend that brands derive their value from their social meaning, and are used by consumers as symbols in social interaction (Solomon, 1983; Elliott, 1994). Hence, brands are regarded as individual or social systems of meaning. Each definition puts a certain perspective into the focus of interest (see also de Chernatony 2006 for a comprehensive overview), thus leaving a patchwork of theoretical approaches. Only few authors such as Schultz and de Chernatony (2006; 2002) or de Chernatony and Dall’Olmo Riley (1999) have argued that brands need to be conceived as complex entities linking a company’s activities with perception’s in the stakeholders’ minds. Mühlbacher et al. (2006) propose an integrative conceptualization of brands as complex social phenomena, which covers the interplay between the various brand components and social actors, who continuously develop brand meaning. They consider brands to comprise three closely interrelated concepts: the brand interest group, brand meaning, and brand manifestations (see Figure 3). People and organizations, who are interested in a brand (e.g. media agents, customers, suppliers, employees, celebrities, competitors, or customers and sympathizers of competitors), form the interest group of a retail brand. They enter the brand-related discourse and take part in brand creation, when they purposefully or coincidentally get together and share their experiences, or express their beliefs and convictions regarding a certain retail company, its products, services, stores, events, or persons. Brands are subject to a continual, ongoing process of discourse among the members of the interest group. Brand meaning emerges, is reinforced, or changed within this process. Brand meaning is a dynamic collective knowledge and evaluation system continually emerging from interactions among the members of a brand interest group (see Ligas and Cotte (1999) for a framework on the brand negotiation process). Brand meaning becomes subject to experience through the manifestations of the brand, which are socially constructed by the members of the brand interest group, using, consuming, and co-creating them. Brand manifestations are material and immaterial expressions of the meaning of a brand. Hence, brand manifestations allow individuals and groups

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45

to sensually experience the meaning of a brand. Brand manifestations are not determined from the very beginning of a brand, nor are they to be exclusively thought of as branded objects. They may comprise a number of elements, which can be objects as well as people, organizations, activities, or patterns of behavior.

Figure 2: Brands as complex social phenomena

Brand  Meaning

Context Social‐ Discours

Brand Interest Group

Brand Manifestation

2.2. Retail Brands as Relationship Partners

Marketing has shifted from a transactional to a relationship focus within the last decade. It is acknowledged that despite of the growing research interest the term ‘relationship’ has not been defined in the marketing and management literature. Broom, Casey and Ritchley (1997), Egan (2001), as well as Varey (2002) stated a need for defining and measuring relationships. Social psychologists imply that a relationship occurs, when two or more parties interact, and their interaction has certain qualities, including its intensity, the content and presentation of the verbal material and the non-verbal communication signals (Hinde 1979; 1995). However, relationships exist over time (Hinde (1995) and may continue over periods in which the relationship partners do not interact or communicate with each other. For a relationship to truly exist, Hinde (1995, 1997), calls for some sort of interdependence as well as compromise and closeness. Recent research suggested that people sometimes form relationships with brands in much the same way in which they form relationships with each other in a social context (Fournier 1998; Johnson and Thomson 2003). Analogue to interpersonal relationships Fournier (1998) identified different types of consumer – brand relationships. According to Fournier, consumers seek and maintain those relationships that add meanings to their lives. Aggarwal (2004) suggests two reasons why consumers might interact with brands in ways that closely mirror their social interaction. First, consumers often do not distinguish between brands (in the sense of the branded product)

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and manufacturers of brands. To them the company is often the brand and the brand is the company. Aggarwal regards this perception as more likely for service brands and retailers, where people interact with people. Second, even when companies focus primarily on selling physical products, some consumers may think of the brand as a living being. Animism, the belief that objects possess souls, has long been recognized in the domain of products (Gilmore 1919). Moon (2000) has demonstrated that many of the social rules and conventions that govern interpersonal relationships also apply to humancomputer interaction. Once products and brands are associated with human qualities people may interact with them in ways that parallel social relationships. Reciprocity of the relationship is necessary for the brand to transform to a legitimate relationship partner. The brand has to behave as an active contributing partner (Fournier, 1998; Berry 2000). Blackstone (1992) emphasized the importance that customers feel that brands have positive behaviors and attitudes towards them. In contrast Bengtsson (2003) argues that some consumers might be unwilling to accept that they form a relationship with brands. 2.3. Attachment Theory

During the past 20 years, attachment theory has become one of the major frameworks for the study of all kinds of inter-individual relationships. It was originally designed to explain the emotional bond between infants and caregivers, where attachment was defined as an emotional-laden targetspecific bond between a person and a caregiver. Human infants are supposed to be born with a repertoire of (attachment) behaviors designed by evolution to assure proximity to supportive others (Bowlby, 1982/1969; Ainsworth, 1982). Bowlby (1994/1979) believed that attachment is an important component of human experience “from the cradle to the grave” (p. 129). Attachment theory was successfully extended to adolescent (Main/Kaplan/Cassidy, 1985) and to adult relationships (Hazan and Shaver, 1994; Trinke and Bartholomew, 1997). Proximity maintenance and separation distress, as well as safe-haven and secure-base behaviors are the data from which the existence and regulatory role of the attachment behavioral system are inferred (Hazan/Zeifman, 1999). Attachment styles are formed in the childhood but continue to be shaped throughout a person’s lifespan. Attachment theory distinguishes into secure, anxious-preoccupied, dismissive-avoidant and fearful-avoidant attachment styles (Bartholomew and Horowitz, 1991). Once these different attachment styles are developed throughout infancy and early childhood they are likely to have an impact on future relationships like kinships, friendships and romantic relationships (Park, Macinnis and Priester, 2006).

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Studies confirm that every single attachment type exhibits diverse behavior in relationship contexts. Bartholomew and Horowitz (1991) stated that for example secure attached people easily become close to others, have positive views of their relationships and report greater satisfaction and adjustment in their relationships compared to dismissive-avoidant attached people. Moreover they feel comfortable about depending on others and having others depend on them. Collins (1996) found out that anxious individuals experience high levels of negative emotions. They are jealous and in addition, they more likely come into conflicts. Anxious attached people also report that their partners’ behavior is the consequence of themselves. In problem-solving situations they are likely to show dysfunctional anger (Kobak/Hazan, 1991). Moreover, they engage in relationships fairly quickly and fall in love easily and frequently (Hazan, Shaver, 1987). The way of how avoidant attached people evaluate themselves and others has got an influence on their opinion of social relationships and their interaction with others (Zhang, Hazan, 2002). They don’t like to work together with people, only when it is an opportunity to gain love and respect. In their point of view, work leads to greater happiness than relationships do (Hazan, Shaver, 1990). They also tend to avoid social contact during their process of information-seeking and are hardly to change their view as well as hardly accept new information (Mikulincer, 1997). Insecure individuals indicate lower levels of companionship and security related to their best friends and they expect as well that their friendships are less likely to overcome difficulties (Saferstein, Neimeyer, Hagans, 2005). Research in psychology concentrates on individuals’ attachments to other individuals. However, attachment can extend beyond the interpersonalrelationship context. People can form emotional attachments to a variety of objects, including pets (Hirschman, 1994), places (Rubinstein and Parmelee, 1992), gifts (Mick and DeMoss, 1990), collectibles (Slater 2000), brands (Shouten and Mc Alexander, 1995), other types of special or favourite objects (Ball and Tasaki, 1992; Wallendorf and Arnould 1988; Richins 1994), celebrities (O’Guinn 1991) and sport teams (Babad 1987). “Although attachment to a person may differ from attachment to an object in several ways, the fundamental conceptual properties and behavioral effects of attachment are assumed to be quite similar.” (Park, Macinnis and Priester, 2006). Very recently attachment theory was extended to business-relationship settings (Paulssen and Fournier, 2005; Thomson and Johnson, 2006). The results of Paulssen and Fournier’s study support the idea, that personal attachment styles affect consumers’ marketplace relationship attitudes and behaviors in much the same ways that they affect interpersonal relationships

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and behaviors. Taking the view of brands as complex social phenomena, the question arises: What are consumers attached to, when they relate to retail brands and do attachment styles make a difference?

III. STUDY A total of 40 exploratory interviews with female customers of 2 retail brands, who were strongly attached to their store and had different attachment styles were conducted. The companies were selected from different retail industries (fashion and grocery). The first company was a regional supermarket chain characterized by self-service with single service isles (meat products & cheese), a remarkable architecture/ store design, and an integrated coffee shop. The second company was an exclusive fashion store, characterized by a traditional and elegant atmosphere, exclusive fashion labels, high service orientation and an integrated bar on the first floor. Because of the explorative character of the study an in-depth personal interviewing technique was used. The interview guideline comprised four basic topics: • • • •

The individual relationship to the retail brand the individual meaning of the retail brand appealing elements of the retail brand 2 scenarios of short and enduring separation to explore elements that would be missed

The whole interview took about 60 minutes on average and was tape recorded. The responses were content analyzed. To select qualified customers for the exploratory study a screening procedure was carried out first. Standardized interviews with 121 female customers of the supermarket chain and with 55 female customers of the fashion retailer were conducted. Attachment intensity was measured using a 6-item scale (Lacoeuilhe, 2000). The original French items were transferred into German language following the standard procedure of translation and back translation. Attachment styles were measured using the business attachment style measure of Paulssen and Fournier (2005). All scales were pretested with 48 respondents. With all Cronbach α above 0.7 and all factor loadings greater than 0.7 (see table 1) the scales showed good reliability and validity in the pretest and also in the screening.

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Table 3: Scale Reliability and Validity Reliability Pretest Screening α=0.74

α=0.79

Security

α=0.84

α=0.78

Closeness

α=0.91

α=0.89

Attachment intensity

Attachment Style

Validity (Factor Analysis Pretest Screening 56% expl. var. 57% expl. var. loadings >0.7 loadings >0.8 76% expl. var. 70% expl. var. loadings >0.7 loadings >0.8 86% expl. var. 82% expl. var. loadings >0.9 loadings >0.9

Customers were selected, who scored 4 and higher on the attachment intensity scale. Respondents, who scored high (>4) on both dimensions were assigned to the secure attachment style. Those who scored high on the secure dimension but low (