Drivers of Store Choice in an Evolving Market: An empirical study
01 Jan 2013-
TL;DR: In this article, the authors explored the store attributes as perceived by customers that act as motivators in store choice in food and grocery retailing and found that the store location is overshadowed by other store atmospherics.
Abstract: Retailing in India is at a crossroads. Currently, retailers are experimenting and trying different retail format based on local conditions. However, most of these formats are fetching moderate to lukewarm success. In such a scenario, it is important for retailers to understand the customer preferences of store atmospherics and their impact on store choice. The purpose of this study is to explore the store attributes as perceived by customers that act as motivators in store choice in food & grocery retailing. Mall intercept survey method using structured questionnaire is used for data collection. Descriptive (mean and standard deviation) and inferential statistical tools (Factor analysis) are used to analyse the data collected from 250 food and grocery retail customers from convenience stores, supermarkets and hypermarkets in tier-2 cities in Punjab in India. The findings suggest that customers value availability and variety of products at store, store ambience, service and facilities, and value for money offered at store. Further, the finding that the store location is overshadowed by other store atmospherics is in opposition to the common belief that Indian customer look for proximity while shopping for food & grocery. The present study provides an understanding of shoppers’ preferences related to store environment in an evolving Indian retail market. The findings may help the food & grocery retailers to use store atmospherics as a fertile opportunity of market differentiation. Due to lack of research in the field of drivers of store choice, this study may serve as a departure point for future studies in this area of concern.
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08 Jul 2007
TL;DR: In this paper, the authors present an Intranet-private network of sharing information Reduces paper Ease in sharing information Access restricted EDI - electronic data interchange Used in ordering, invoicing and confirmation of product movement ECR-efficient consumer response Use of electronic point of sale (EPOS) units (scanners) CRMcustomer relationship management Amazon.com history of sales, suggestions Replacements.com listing of personal patternsemails on inventory available SFAsales force administration Monitoring visits, sales, training, promotions etc.
Abstract: Intranet-private network of sharing information Reduces paper Ease in sharing information Access restricted EDI – electronic data interchange Used in ordering, invoicing and confirmation of product movement ECR-efficient consumer response Use of electronic point of sale (EPOS) units (scanners) CRMcustomer relationship management Amazon.comhistory of sales, suggestions Replacements.com listing of personal patternsemails on inventory available SFAsales force administration Monitoring visits, sales, training, promotions etc. Data warehouseskey aspect of a companies system PRIVACY Issues
155 citations
TL;DR: In this article, the authors explored the tensions that exist between modern retailers and their traditional counterparts as a result of the influx of supermarkets in Ghana and compared attributes related to the control of access to consumers by the Supermarket and the Wet-market.
Abstract: The source of conflict between Supermarkets and Wet-markets arise from the use of market power and economies of scale by one group against the other. This study explores the tensions that exist between modern retailers and their traditional counterparts as a result of the influx of supermarkets in Ghana. The main objective of the study is to compare attributes related to the control of access to consumers by the Supermarket and the Wet-market. In this study, the dot-survey approach of Rapid Market Assessment Technique was used to elicit information from 438 respondents at the Madina market (wet-market) and Melcom (supermarket) over a period of two weeks and Wilcoxon-Mann-Whitney (WMW) comparison test and descriptive statistics were employed for the analysis. The results revealed that consumers patronise the supermarkets for convenience and the wet-market for freshness of product. Their purchasing decisions were affected by their level of education and product selections of the retailer. The highly educated preferred to shop at the Supermarket instead of the Wet-market; however, over 50% of respondents preferred the wet-market for fresh food products and the supermarket for non-food items. Each retailer receives its fair share of purchases from its loyal customers, therefore the revolution arising from the supermarket influx in Ghana has not yet resulted into conflict between supermarkets and their traditional counterparts, though it is inevitable if nothing is done to prevent it from happening. To avoid the conflict, it is recommended that policies should be instituted to (i) improve the market infrastructures and shopping environment in the Wet-markets, (ii) give tax concession to modern retailers who source products from local farmers and small-scale processors, (iii) enable traditional retailers position themselves on the fringe and co-exist with modern retailers and (iv) enforce public standards with regards to food safety laws in the traditional markets.
8 citations
TL;DR: In this article, the authors used binary logistic regression to determine the impact of multiple independent variables presented simultaneously to predict membership in one or the other categories of the dependent variable, in this case Traditional or Modern retail outlet.
Abstract: Many consumer business decisions may eventually be reduced to a dichotomous choice, such as, where to purchase fresh fruit in Trinidad and Tobago (T&T) – Traditional outlet (public market and roadside stand) or Modern outlet (supermarket). From a retail outlet perspective, traditionally fresh fruit was predominantly sold in the public markets and roadside stalls in T&T. Today the shopper is presented with an expanded range of options, including domestic and foreign supermarkets. Binary Logistic regression is used to determine the impact of multiple independent variables presented simultaneously to predict membership in one or the other categories of the dependent variable, in this case Traditional or Modern retail outlet. This study focuses on the retail outlet attributes and socio-economic attributes of females as factors influencing retail outlet choice for fresh fruits in T&T. The results obtained indicated that income and a factor called “Service” obtained from factor analysis of the store attributes are statistically significant in the choice of retail outlet for the purchase of fresh fruits by women in T&T. This information should assist retail outlet managers in the development of their business strategies.
4 citations
Cites background from "Drivers of Store Choice in an Evolv..."
...Prashar (2013) examined retail outlet attributes that acted as drivers of store selection in the Indian food and grocery sector for three formats, convenience stores, supermarkets and hypermarkets....
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08 Sep 2021
TL;DR: In this article, the authors attempt to bridge the link between factors representing stores' decision boundaries and consumers' decision-making criteria, and explore the impact of consumer demographic variances.
Abstract: This study is an attempt to bridge the link between factors representing stores’ decision boundaries and consumers’ decision-making criteria. It also explores the impact of consumer demographic var...
4 citations
Cites methods from "Drivers of Store Choice in an Evolv..."
...To understand various factors and their influence on store choice, an investigation of past research was done (Dhurup et al., 2013; Grah, & Tominc, 2015; Jaravaza & Chitando, 2013; Prashar, 2013; Shukla & Babin, 2013; Sinha et al., 2014; Thenmozhi & Dhanapal, 2012; Thomas, 2013)....
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TL;DR: In this paper, a study was conducted to identify, the various dimensions that would drive a consumer to select a store, with focus on the consumer's perception of store selection, 702 respondents were taken into account to arrive at certain store attributes that might be of interest to the large consumer durable industry.
Abstract: India is an evolving retail destination. Correspondingly the behaviour of the consumer is making new strides as the consumer's metastasis in behaviour brings newer challenges for the retail outlets. The customer has a store choice to make even before he decides on which brand to buy. This study is an attempt to identify, the various dimensions that would drive a consumer to select a store. The study is confined to selected consumer durables as a product category. With focus on the consumer's perception of store selection, 702 respondents were taken into account to arrive at certain store attributes that might be of interest to the large consumer durable industry and the retailers selling these product. Pre-testing followed the result analysis using exploratory factor analysis. The result proposes certain finding relevant for further inquiry on the part of the researchers.
3 citations
References
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TL;DR: In this article, the authors propose a comprehensive store choice model that includes three types of store environment cues (social, design, and ambient) as exogenous constructs, various store choice criteria (including shopping experience costs that heretofore have not been included in store choice models) as mediating constructs, and store patronage intentions as the endogenous construct.
Abstract: Research on how store environment cues influence consumers’ store choice decision criteria, such as perceived merchandise value and shopping experience costs, is sparse. Especially absent is research on the simultaneous impact of multiple store environment cues. The authors propose a comprehensive store choice model that includes (1) three types of store environment cues (social, design, and ambient) as exogenous constructs, (2) various store choice criteria (including shopping experience costs that heretofore have not been included in store choice models) as mediating constructs, and (3) store patronage intentions as the endogenous construct. They then empirically examine the extent to which environmental cues influence consumers’ assessments of a store on various store choice criteria and how those assessments, in turn, influence patronage intentions. The results of two different studies provide support for the model. The authors conclude by discussing the results to develop an agenda for addit...
2,088 citations
"Drivers of Store Choice in an Evolv..." refers result in this paper
...These findings are in consistence with the findings of a number of previous studies appeared in the literature (Ghosh, 1990; Grewal and Sharma, 1991; Baker et al, 2002; Mattila and Wirtz, 2001)....
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Book•
05 Jan 20001,940 citations
TL;DR: In this article, a hierarchical factor structure is proposed to capture dimensions important to retail customers based on the retail and service quality literatures as well as three separate qualitative studies, and confirmatory factor analysis based on partial disaggregation technique and cross-validation using a second sample support the validity of the scale as a measure of retail service quality.
Abstract: Current measures of service quality do not adequately capture customers’ perceptions of service quality for retail stores (i.e., stores that offer a mix of goods and services). A hierarchical factor structure is proposed to capture dimensions important to retail customers based on the retail and service quality literatures as well as three separate qualitative studies. Confirmatory factor analysis based on the partial disaggregation technique and cross-validation using a second sample support the validity of the scale as a measure of retail service quality. The implications of this Retail Service Quality Scale for practitioners, as well as for future research, are discussed.
1,914 citations
TL;DR: In this paper, the authors extend the notion of Gestalt to consumers' perceptions of retail environments and demonstrate that consumers perceive Servicescapes holistically when ambient scent and music are congruent with each other in terms of their arousing qualities.
1,052 citations
TL;DR: In this article, a random sample of US grocery consumers (N=454) was surveyed using a self-administered questionnaire and the results included in this research were gathered and reported on an individual format basis.
Abstract: – To provide a general understanding of grocery consumers' retail format choice in the US marketplace., – A random sample of US grocery consumers (N=454) was surveyed using a self‐administered questionnaire. Descriptive and inferential statistical techniques (regression, ANOVA) were used to evaluate the data., – Identifies demographic groups who frequent specific formats (specialty grocers, traditional supermarkets, supercenters, warehouse clubs, internet grocers) and examines store attributes (e.g. price competitiveness, product selection, and atmosphere) as drivers of format choice., – The results included in this research were gathered and reported on an individual format basis. In order to capture consumer choices across a range of grocery retail formats, forcing respondents to compare formats was not initiated. In addition, data pertaining to whether consumers had access to each and every type of format in the study were not collected. Examination of how dimensions of consumer access limit or expand retail patronage behavior could also be highly beneficial to grocery retailers., – This research provides grocery retailers that operate within the USA specific knowledge of the attributes that consumers consider to be most important when making format choices (e.g. cleanliness, price competitiveness, product assortment, courtesy of personnel), and identifies the demographic characteristics of these consumers. The results suggest marketing strategy implications for grocery retailers that operate in the US market. As competition in the sector continues to evolve and consumer demographics change within the US market, understanding the consumer‐format choice linkage will be critical to retailer performance in the industry., – This exploratory study uses demographics and store attributes as a framework for profiling consumers by their ultimate retail format choice. The paper is unique because there are few similar empirical studies focused on the US grocery sector.
331 citations
"Drivers of Store Choice in an Evolv..." refers background in this paper
...Carpenter and Moore (2006) studied the grocery shoppers’ retail format choice in the context of US....
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