Babson College - Hometown Ideology and Retailer Legitimation: The Institutional Semiotics of Wal-Mart Flyers

Wal-Mart Stores Inc. is the world's largest retailer and we offer in this research another explanation for this company's success. Wal-Mart has grown in the US market because it connects itself symbolically with the dominant ideologies of American life. Through activities that respond to family, religious, community and national norms, Wal-Mart situates itself symbolically on the main street of a mythical hometown. This symbolic connection not only positively disposes shoppers to Wal-Mart but also insulates the firm from any uncomfortable questions about its business practices.

At the heart of this alternative explanation is a Jakobsonian semiotic analysis of an ordinary, 32-page Wal-Mart advertising flyer. In the analysis, three types of questions were posed and then answered. First, who is being addressed by the flyer communication? Second, what are the addressees in the communication being asked to do? And third, what myths, narratives, stories and parables do the words and illustrations in the flyer suggest? By addressing these same questions to eighteen other flyers from Sears, Target and Kmart, we provide context and comparative results.

Institutional theory informed the answers to the semiotically derived questions. This theory posits that the retailer must be isomorphic with cultural-moral as well as economic norms. The retailer responds to the former with institutional acts supportive of family, community and nation. It reacts to the latter with performative acts, such as seeking convenient locations, low prices and appropriate merchandise selections. Performative and institutional acts can be both symbolic and real.

The integration of semiotics and institutional theory was labeled institutional semiotics. In comparing this approach to the analysis of retail image to traditional approaches, we found both similarities and differences. The subject matter of institutional semiotics concerns retailer artifacts rather than consumer data, relies upon rhetorical devices as opposed to statistical analysis and recognizes that interpretations are socially constructed.

In our analysis, we found that the voice of flyer is a wise neighbor, trusted friend or loyal family member speaking primarily to a working class individual with middle class aspirations. Recognizing the expenses of a growing family, the voice of the Wal-Mart flyer counsels thrift and offers a wide selection of goods at low prices. The tone of trust and commitment is consistent with a caring family. The Buy American policy, associates, first name usage and frequent use of U.S. icons reflect American ideologies of anti-statism, populism, egalitarianism and patriotism. These appeals transcend family and neighborhood and reach towards an idealized American community, the mythical hometown, where an appropriate balance is found between economic and moral pursuits.

The alignment of Wal-Mart with the hometown simulacrum legitimates this retailer with its consumer constituency. It also serves to decouple it from any allegations inconsistent with its image of support for the cultural-moral norms of family, community and nation.

We found verification of this Wal-Mart characterization in other Wal-Mart activities, in the flyer comparisons and in the results of consumer surveys published in the retail press. The flyer comparisons revealed Wal-Mart distinguished itself from three other retailers in the strength of its appeals to community norms. Furthermore, two out of three respondents in three American markets identified Wal-mart as best on community involvement and as having the lowest everyday prices. The results of an experiment reported in the academic literature also suggested that appeals to institutional norms impact upon support for the retailer.

The results of our flyer analysis suggest many future research projects. Consumer interpretations of the retail flyers, relative to our academic approach, would be of particular value. They could test the extent of support for the imagery we have defined and its possible impact upon shopping preferences. The actual, as opposed to symbolic, support for institutional cultural-moral norms could be researched.

As rich, untapped data in portraying everyday consumer society, retail flyers from other retailers, from previous eras and from other countries would present additional interesting research opportunities. If Wal-Mart has been able to harness its flyer to achieve a distinct, institutional image, is there room for only one such major retailer on this pedestal? Why have not other retailers attempted to go this route? Perhaps, it is the unique and durable image of Sam Walton that cannot be duplicated and Wal-Mart has wisely retained and amplified.

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