Studying patterns of consumer's grocery shopping trip

Previous research on (grocery) shopping trips has focused on studying the relationship between shopping frequency and shopper's demographic characteristics. Recognizing that shoppers are heterogeneous in terms of their shopping trip regularity as well as shopping frequency, we propose a mixture model of the exponential and the Erlang-2 distribution with heterogeneous frequency for shopping trip intervals. Applied to IRI (Information Resources, inc.) shopping trip data, we found that 70 percent of shoppers visit grocery stores with random intervals and 30 percent with relatively fixed intervals. We also found clear differences between these “random” and “routine” shoppers in terms of several demographic and purchase behavioral characteristics. The “routine” shoppers are identified to have higher opportunity costs which make it difficult for them to visit grocery stores more often and/ or to switch stores. However, they spend more dollars for a given shopping trip. Finally, we discuss managerial iniplications of segmenting shoppers by their shopping trip regularity.     

Who are the online grocers?

Online grocery sales experienced a surge in Singapore in the early half of 2003 during the SARS outbreak. This research uses the technology acceptance model and some basic demographic variables to study the intended usage of online supermarkets. Based on a sample size of 211 shoppers, it was found that those 21–40 years old have a higher propensity to use the online grocery stores while those having income lower than S$2000 a month have less inclination to make use of e-grocery shopping. The stepwise discriminant analysis shows that two perceived variables, usefulness and ease of use, and two demographic variables, age and income are significant in differentiating the intended customers. Our results are different from past studies, where gender and education were found to be significant. This may be due to the fact that the bulk of the respondents were under 41 years old with at least tertiary education.     

The role of customer loyalty as a brand extension purchase predictor

The paper explores the relationship between customer loyalty to the retail brand and the purchase of non-traditional products and services (NTPS) offered by grocery retailers with their private label (i.e. over-the-counter products, photo printing, mobile communication services and travel booking). Customer loyalty to the retail brand is measured through its behavioral and attitudinal components. A survey was conducted administering a questionnaire to 480 retail customers in two stores belonging to different retail grocers. A binary logistic regression was then applied using the buying of at least one NTPS as the dependent variable (1 = buy; 0 = no buy) and behavioral loyalty and attitudinal loyalty as independent variables. Results show that attitudinal loyalty plays a significant role as buying predictor, but this depends on the NTPS offered. Theoretical and managerial implications are derived.     

Income and time pressure: a person-situation grocery retail typology

A person-situation segmentation framework is proposed. The demographic variable 'income' and the situational variable 'time pressure' were integrated and applied to grocery retail shopping. Using a combination of individual scanning data and a mail survey, we divided a sample of moderate to frequent grocery shoppers in a large Belgian retail organization into four grocery-shopping segments - 'money-poor, time-rich', 'money-poor, time-poor', 'money-rich, time-rich' and 'money-rich, time-poor'. Significant differences existed between these segments in several demographic, behavioural and attitudinal characteristics, including: demographic - age, composition and size of household, number of children at home, marital status, location, education and occupation; behavioural - amount spent in the store, buying pattern for different product categories and different task definitions; attitudinal - overall attitude towards grocery shopping and different grocery-shopping attribute saliences.     

Price,quality, and grocery shopping behaviour

Female grocery shoppers were segmented using cluster analysis; subsequently, segment profiles were developed using discriminant analysis. Identified shopper segments were found to distinguish clearly between various money-saving tactics and to rely on such tactics to varying degrees. Also, they were found to differ in terms of preference, behavioural and demographic characteristics.     

‘Online Omnivores’ or ‘Willing but struggling’? Identifying online grocery shopping behavior segments using attitude theory

The landscape of grocery shopping is changing fast. Online retailing via home delivery or ‘click and collect’, convenience stores and various hybrid shopping channels are gaining popularity with some consumers, but not with others. The central premise of this paper is that focusing on the ‘average grocery shopper’ is not very helpful if the objective is to understand recent and future changes in grocery shopping. There are few recent studies that have identified groups of individuals using online and multi-channel shopping by considering both observable behavior and associated attitudes – feelings, beliefs, opinions and behavioral dispositions – and by drawing explicitly on attitude theories from social psychology. The current paper thus aims to identify and describe groups of grocery shoppers using a psychographic segmentation approach that is explicitly grounded in the Theory of Planned Behavior (TPB) (Ajzen, 1991) and its close cousin, the Technology Acceptance Model (TAM) (Davis et al., 1989). Primary data were collected through a self-completion questionnaire that produced a largely representative study sample of 2032 grocery shoppers across the United Kingdom, Europe's largest market for online grocery shopping. A principal component and two stage cluster analysis methodology was implemented to identify five well-defined and highly interpretable segments according to their attitudes, norms, perceptions and beliefs, then profiled by their socio-economic and grocery shopping characteristics. The segments reveal a range of different grocery shopping preference levels, from those ‘super-shoppers’ (Flynn and Goldsmith, 2016) who are clearly attracted to the online experience and want more (‘Intensive Urbanites’, ‘Online Omnivores’) to those who appear resistant and socially responsible towards the adoption of online shopping services (‘Resisting and Responsible’). The key distinguishing features of these segments suggest that shoppers might be attracted to or repelled from online shopping for reasons of convenience, perceived benefits, costs and risks, technology affect, time pressures and fit into daily schedules (perceived behavioral control), as well as social and environmental dimensions of personal norms and beliefs.     

One Vs. Many: who wins? An empirical investigation of online product display

ABSTRACT

This study questions the unharmonious ways of product displays in online grocery retailing and aims to find if visual complexity of the product display has any impact on behavioral outcomes of online grocery shoppers. Our main finding was that visually complex images, i.e. images with a high number of elements have a negative effect on affective and cognitive states resulting in decreased behavioral intentions. However, when the number of elements in the product display was decreased, i.e. the visual complexity of the product display was reduced, shoppers’ cognitive and affective responses and intentions were similar to when they were exposed to noncomplex images. We also found that arousal and pleasure (parallel mediators) absorption, telepresence, utilitarian and hedonic values and perceived ease of use (serial mediators) mediate the effect that the product display has on behavioral intentions.     

Healthy Profits: An Interdisciplinary Retail Framework that Increases the Sales of Healthy Foods

Disruptive layouts, smart carts, suggestive signage, GPS alerts, and touch-screen preordering all foreshadow an evolution in how healthy foods will be sold in grocery stores. Although seemingly unrelated, they will all influence sales by altering either how convenient, attractive, or normal (CAN) it is to purchase a healthy target food. A Retail Intervention Matrix shows how a retailer’s actions in these three areas can be redirected to target shoppers based on whether the shoppers are Health Vigilant, Health Predisposed, or Health Disinterested. For researchers, this review offers an organizing framework that integrates marketing, nutrition, psychology, public health, and behavioral economics to identify next generation research. For managers, this framework underscores how dozens of small, low cost, in-store changes are available to each that can surprisingly increase sales of entire categories of healthy food.     

Discriminant Analysis of Consumer Interest in Buying Locally Produced Foods

In the wake of Foot and Mouth Disease in the UK, upstream operators in the agrifood sector are being encouraged to undertake more direct marketing of their products. However, little is known about consumer interest in buying local food, and the factors that might influence a positive response. Drawing from the literature on ethical and environmentally responsible consumer behaviour, interest in local food is conceptualised as being related to attitudinal, situational and demographic factors. Discriminant analysis of responses to a survey of shoppers in the north of England finds that attitudinal factors tend to explain variations in local food interest better than demographic factors. In addition, situational factors of urban/rural residency and degree of involvement with farming are also strong discriminators. However, as importance ratings of food choice attributes such as low price and intrinsic quality did not differ significantly according to interest levels in local food, the results imply that even highly interested consumers have pragmatic expectations about local food products that need to be met for marketing strategies to be successful.     

Exploring the choice between in-store versus online grocery shopping through an application of Semi-Compensatory Independent Availability Logit (SCIAL) model with latent variables

This paper examines individuals' choice of in-store and online grocery shopping channels using stated preference (SP) choice experiments. The study uses 1,391 records from a stated preference choice experiment in the Greater Toronto Area (GTA), Canada. It applies a Semi-Compensatory Independent Availability Logit (SCIAL) Model with latent variables. The methodology accounts for semi-compensatory choice behaviour through probabilistic choice set formation considering effects from socioeconomic and psychological variables. This study demonstrates the advantage of considering probabilistic choice set formation and semi-compensatory behaviour in modelling the adoption of innovative products. Empirical results reveal that shoppers demonstrated similar myopic behaviours once they firmly considered in-store grocery and subscribed free delivery services in their choice sets. They are equally likely to choose both channels without careful comparison to alternative channels once they firmly consider both channels in the choice set. However, considering the latter in choice sets is much costlier than in-store shopping. Therefore, in-store grocery shopping will still dominate the grocery shopping channel unless all home delivery services become free. Moreover, grocery shoppers value same-day delivery service. For typical delivery services charged between $4 and $20 in the GTA, Canada, grocery shoppers are willing to pay between $3.91 and $8.44 for same-day delivery. The latent variable describing shoppers’ perceived pandemic fear significantly contributes to the choice set inclusion probability of in-store grocery pick-up services, but the effect is not significant for other home delivery channels. This highlights heterogeneity in grocery shoppers' choice behaviour within the online channel.     

Buying Groceries in Brick and Click Stores: Category Allocation Decisions and the Moderating Effect of Online Buying Experience

The large majority of online grocery shoppers are multichannel shoppers who keep visiting offline grocery stores to combine convenience advantages of online shopping with self-service advantages of offline stores. An important retail management question, therefore, is how these consumers divide grocery purchases across the retailer's online and offline channel. We provide a comprehensive analysis of the impact of category characteristics on the allocation pattern of multichannel grocery shoppers and find that category allocation decisions are affected not only by marketing mix differences between the online and offline channel, but also by intrinsic category characteristics like perceived purchase risk and shopping convenience. In addition, we examine the effect of online buying experience. In line with expectations, we find that it can affect allocation patterns in different ways: (i) it attenuates the perceived risk of buying sensory categories online, thereby reducing differences in online category share, (ii) it reinforces marketing mix (assortment) effects, thereby making online category share differences more pronounced, and (iii) it has no effect for factors such as promotions that are easy to evaluate without experience, thereby leaving the online category share stable. In addition to different experience effects across allocation factors, we also observe variations in experience effects across consumer segments.     

Which little piggy goes to market? Characteristics of US farmers' market shoppers

The growth in farmers' markets in the US has raised questions about whether they are a niche market or appeal to a broader population. Using a simple, random sample of US food shoppers, this study uses a test of means to examine whether there are differences in characteristics between those who shop at farmers' markets and those who do not. A key finding was that there was no significant difference in the level of food expenditures between shoppers and non‐shoppers. In addition, a probit model was used to examine the marginal effects of attitudinal, behavioural and demographic variables on the probability of shopping at a farmers' market. The probability was significantly increased by the following: enjoyment and frequency of cooking, being female and the presence of another adult in the household. Income did not significantly influence the probability of shopping at a farmers' market. However, the probability of shopping at a farmers' market was significantly reduced if respondents perceived that cost was the most important characteristic of food. These characteristics imply limited appeal of farmers' markets currently to convenience‐oriented, single‐person, and single‐parent households.     

Influence of demographics,psychographics, shopping orientation,mall shopping attitude and purchase patterns on mall patronage in India

Retail boom in India is generating considerable interest from within the country as well as abroad. This growth in retail has been fueled by the mushrooming of shopping malls across the country. Despite this very little is known about the characteristics of the Indian mall shoppers. Also of special interest is the behavior of heavy shoppers because regardless of the footfalls at the mall, if the money spent is low, the mall does not benefit. The purpose of this study, therefore, was to profile Indian mall consumers, identify characteristics differentiating the high rupee volume purchasers at the mall and to evolve a model that can help predict heavy rupee volume purchasers in a catchment.The results of this study, spanning eight cities of India and 3026 mall consumers, indicate that the heavy shoppers are significantly different from the other groups along multiple demographic and socio-economic variables, behavioral variables, attitude and shopping orientation. Additionally, the study contributes to literature by evolving a typology of shoppers. The model evolved using Discriminant Analysis was used to predict potential heavy and low rupee volume purchasers for a city of interest, where currently there are no malls.     

Online grocery shopping: the impact of shopping frequency on perceived risk

Online grocery shopping has enjoyed strong growth and it is predicted this channel will continue to grow exponentially in the coming years. While online shopping has attracted an abundance of research interest, examinations of online grocery shopping behaviour are only now emerging. Shopping online for groceries differs considerably from general online shopping due to the perishability and variability of the product, and frequency of the shopping activity. Two salient gaps underpin this research into online grocery shopping. This study responds to calls to investigate the online shoppers’ experience in the context of online purchasing frequency. Second, this study examines the mediating effect of perceived risk between trust and online repurchase intention of groceries. An online survey was employed to collect data from shoppers who were recruited from a multi-channel grocery e-retailer’s database. The online survey, comprising 16 reflective validated scale items, was sent to 555 frequent and infrequent online grocery shoppers. Results find that while customer satisfaction predicts trust for both infrequent and frequent online grocery shoppers, perceived risk fully mediates the effect of trust on repurchase intentions for infrequent online grocery shoppers. Furthermore, path analysis reveals that the developed behavioural model is variant across both groups of shoppers. Theoretically, we provide a deeper understanding of the online customer experience, while gaining insight into two shopper segments identified as being important to grocery e-retailers. For managers, this study tests an online customer behavioural model with actual purchasing behaviour and identifies the continued presence of perceived risk in grocery e-retailing, regardless of purchase frequency or experience.     

Supermarket consumers and gender differences relating to their perceived importance levels of store characteristics

Family grocery shopping is the accepted domain of women; however, modern social and demographic movements challenge traditional gender roles within the family structure. Men now engage in grocery shopping more freely and frequently, yet the essence of male shopping behaviour and beliefs present an opportunity for examination. This research identifies specific store characteristics, investigates the perceived importance of those characteristics and explores gender, age and income differences that may exist. A random sample collection methodology involving 280 male and female grocery shoppers was selected. Results indicated significant statistical differences between genders based on perceptions of importance of most store characteristics. Overall, male grocery shoppers considered supermarket store characteristics less important than female shoppers. Income did not affect shoppers' level of associated importance; however respondents' age, education and occupation influenced perceptions of price, promotions and cleanliness.     

Drivers of Customers’ Adoption and Adoption Timing of a New Loyalty Card in the Grocery Retail Market

The authors study consumers’ process of adoption of a new loyalty card in a grocery retail context. More specifically, the authors simultaneously investigate the impact of attitudinal, behavioral, and socio-demographic variables on the likelihood of adoption and the time to adoption. They show that these variables differently affect the adoption likelihood and timing and demonstrate the importance of attitudinal measures of customer loyalty such as commitment to the store. This research confirms the so-called self-selection bias and extends it to the attitudinal dimension of loyalty. Some guidelines are proposed to increase the effectiveness of loyalty card program launches.     

Grocery Purchase Behaviour for National and Own-Label Brands

This study compares the shopping habits for national and ownlabel brands to establish if there are differences in personal characteristics and purchase behaviour between those who buy national brands and those who buy own-labels in the UK. While statistical research could quantify how British grocery shoppers felt about food brands, it usually cannot explain why shoppers had the opinions they did, hence this study. It is thus an investigation, through the eyes of grocery shoppers, to answer the ‘WHY’ questions. Two distinct markets were found to exist. These grocery shoppers differ in terms of socio-economic status, personal characteristics and shopping behaviour. The findings provide information useful to both retailing and manufacturing interests as retail marketing strategies are developed in the face of intensifying competition for shoppers' food expenditure in the market-place.     

Assessment of potential retail segmentation variables An approach based on a subjective MCI resource allocation model

The application of a multiplicative competitive interaction (MCI) resource allocation model to assess potential segmentation variables in terms of their capacity to homogenise consumers’ patronage preferences is proposed. The method consists of grouping the potential customers by the variable in question, determining the shopping profile of each resulting segment, and comparing the results to identify insightful relationships between the variable and the shoppers’ retail selection criteria. An empirical test of the procedure in the context of the grocery retail market is subsequently presented and confirms the importance of evaluating easy-measurable demographic and socioeconomic variables as orientative indicators of shopping behaviour.     

The importance of consumer characteristics and market structure variables in driving multiple store patronage

The purpose of this study is to investigate multiple store patronage. Specifically, the aim is to relate the number of stores patronized to a set of consumer characteristics and market structure factors, according to a cost–benefit approach. Data from a sample of 1000 shoppers indicate that only few consumer characteristics impact on multi-store patronage pattern for grocery purchases (gender and shopping activity perception). Moreover, the number of stores operating in the market proved to be an important determinant of patronage set size. Implications for retailers are discussed with suggestions for future research.     

Sociodemographic and spatial disaggregation of e-commerce channel use in the grocery market in Great Britain

The UK Grocery e-commerce industry is amongst the most developed in the world with an estimated value of £11.4Billion in 2018. Assisted by technological developments, the market has experienced dramatic growth over the past two decades. Grocery retailers have invested in online infrastructure and home delivery networks. As a result, consumers have a range of options which enable them to shop interchangeably between in-store and online channels. The proliferation of new grocery shopping channels such as home delivery or ‘click and collect’ (collect in store or collection from a non-store collection point), coupled with changing consumer behaviour, provides new challenges for retailers in understanding consumer dynamics in this market. This paper explores consumer behaviour and preferences for e-commerce in the grocery retail industry in Great Britain (GB) using a survey of 19,033 respondents from the major market research company YouGov. Respondents were asked a range of questions around uptake and channel usage in the grocery e-commerce sector. The survey presents a novel opportunity to analyse self-reported consumer behaviour in GB, with survey responses attached to key sociodemographic and locational information. We find that sociodemographics are an important driver of groceries e-commerce usage and channel choice, with females, more affluent households and those in the 25–44 age group most likely to use home delivery, corroborating previous research. Contrasting previous research, we also find statistically significant evidence of relatively high values of home delivery use among over-55s. Whilst overall usage is lower, we find a particular affinity to collection facilities among males and skilled manual workers. Spatially, we find evidence of both the innovation-diffusion theory and the efficiency theory at both a national and local authority district level, using a brief case study of Yorkshire and the Humber. These insights can support grocery retailers as they further develop costly localised infrastructure to support e-commerce. It could also assist retailers in understanding the localised drivers of channel choice as they seek to shift demand from home delivery (with high costs faced by the retailer in relation to the ‘last mile’) to click and collect (in which the customer faces the costs associated with the last mile).