A Study on the Strategic Department Store Positioning by Consumer's Cognition

Kim Jong - Chan(Dept. of Business Administration Graduate School of Sung Kyun Kwan University)

Consumer preferential choices may be broadly categorized into generic product choice; brand choice; and store choice.

This paper is especially related to store choice, and the stores used in this paper are 10 Department Stores in Seoul.

The purposes of this paper are as follows ;

(1) Drawing up the perceptual or cognitive map by consumer's cognition with Multidimensional Scaling(MDS) approach.

(2) Analysis of Image Characteristics affecting on department store

(3) Showing the Positioning Strategy. Under the above purposes, the statistical analyses used in this paper are chi-square test-department stores by preference rankings, chi-square test -department stores by image

characteristics, Multiregression analysis to analyze the image

characteristics affecting on department store choice, and MDS to

draw up the perceptual or cognitive map by consumer's cognition.

Besides, to name the dimensions on perceptual or cognitive map

some methods were used : consumer's opinion, expert's opinion, multiregression(working at the department store), and (preference ranking by image characteristics).

(1) According to the research results by total 276 respondents, following factors or image characteristics are considered when choosing department store, Convenient location, i.e. distance from home, work, bus routes, etc)

(2) Tendency to seeking after the connection with life and department store.

(3) Quality and Design of Private Brand (B)j products.

(4) Convenience factors. (i.e. parking, resting space, store hours, etc.)

Finally I have presented the 6 alternative to positioning strategy,

(1) Managing the store to have the image of the full-life department store.

(2) Multiple - Store strategy.

(3) Developing the unique image characteristic

(4) Developing the PB products.

(5) Differential or individualized strategy.

(6) Training the sales peoples as the information offerers.