The effects of acquisition and transaction shopping value perceptions on retail format usage intentions: an illustration from discount stores

Although it becomes increasingly important for food retailers to understand what motivates consumers to use one retail format rather than another, research on retail format choice is sparse compared to store choice. This study examines the extent to which perceived acquisition value of shopping at a retail format and perceived transaction value of shopping at one particular retail format outlet in a specific situation have an impact on retail format usage intentions. In addition, we study the influence of different situation-specific factors on perceived transaction value of shopping at one particular retail format outlet. Taking discount stores as an example, the developed conceptual model is empirically tested using a structural equation approach. The results show that perceived acquisition value of shopping at the retail format plays a dominant role in explaining retail format usage intentions, while perceived transaction value of shopping at one particular retail format outlet, which depends on certain situation-specific factors, is of lesser importance.     

The relevance of shopper logistics for consumers of store-based retail formats

This paper discusses and empirically evaluates the relevance of shopping-related logistics for consumers of store-based retail formats. Based on a literature review a conceptual model was developed and subsequently tested using a survey of more than six hundred consumers in the grocery retail sector. Respondents were those primarily responsible for grocery shopping in their households located in a highly concentrated European urban retail market. Variance based structural equation modelling reveals that shopper logistics has a major impact on the convenience of store-based shopping and partly influence consumers' perceptions of shopping related costs. Nevertheless, shopper logistics does not affect consumer behaviour in terms of the share of visits of a store. These results are moderated by age, hedonic shopping orientation, shopping frequency, average spending per trip and store format preference. We conclude that shopper logistics is relevant for consumers of grocery stores but its relevance varies between different shopper groups.     

The importance of atmospherics in the choice of hypermarkets and supermarkets

Are the atmospheric variables equally relevant for supermarket and hypermarket customers? As a contribution to the customers' choice of the store format, firstly this work aims to determine the perception of differences between hypermarkets and supermarkets in terms of store attributes. Second, it sheds light on the role played by atmospherics in the customers' decision process. This study uses a logit approach to model the probabilistic choice of the customers' store format using atmospheric and other marketing variables as important attributes of the grocery store. The model's estimation is based on personal interviews conducted during the shopping process in urban supermarkets and hypermarkets belonging to the same retail chain. The findings show that although the atmospheric variables are significantly important for both store formats, the customers perceive differently the importance of each retail atmospheric cue and other marketing variables, when buying in a hypermarket or in a supermarket: the choice of buying in hypermarket is explained by the significant importance given to the latent variables named pleasant atmosphere and accessibility and responsiveness; in contrast, the choice of buying in supermarkets is explained by the significant importance given to the latent variable nice decoration and empathy with the staff. The other latent variable designated by other marketing variables is only significantly important in the decision of choosing supermarkets.     

Retail shopping lists: Reassessment and new insights

The paper addresses consumers' shopping lists. The current study is based on a survey of 871 lists collected at retail grocery stores. Most items on shopping lists appear on the product category level rather than the brand level. The importance of the brand level varies considerably across product categories. An association between the frequency of a brand's appearance on lists and the amount of money spent on advertising the brand could not be found. A strong link between brands, prices and store names is revealed. Price in the majority of cases refers to brands rather than to product categories. The paper ends with a discussion and with suggestions for future research.     

A comparative analysis of differential consumer response across supermarket and specialty store in the candy category

Retailing industry has undergone tremendous change in its complexity and sophistication over the past few years. Globally we are witnessing the evolution of retailing industry from traditionally micro-managed small retail formats like mom and pop store to modern corporate-managed large retail formats like supermarkets. Consumers are also shopping across these various store formats even for the products in similar categories. In this research, we posit that consumer purchases in the similar categories may very well be characterized by differential responses to marketing mix across different store formats. The proposed model accounts for the influences that these diverse response parameters and preferences have on one another as well as consumer heterogeneity. Our results show that sensitivities to marketing mix as well as correlations in preferences do indeed vary across formats for consumer purchases in similar categories.     

Retailing strategy for customer growth and new customer attraction

The image that current and potential customers have of a retail store affects the magnitude of patronage at that store. In attempting to increase store patronage, management of a retail store must look to people who already are customers, as well as to people who are not current customers. The appropriate strategy depends upon the dimensions used by people in their evaluation of the store. The hypothesis is tested that the strategy used for gaining increased patronage from customers may have to differ from that used to gain patronage from noncustomers.Field survey techniques were used to collect data from 225 adult females. Respondents evaluated three large retail department stores, which were believed to have distinct images in the minds of female shoppers, on the basis of a set of 12 semantic scales that represented various store attributes. Each respondent indicated frequency of shopping at each store. The data were analyzed by two different multiple discriminant analyses. For the customer growth strategy, the semantic scale measures were used to develop a discriminant model for each store to determine which attributes would be the best predictors of shopping frequency. The analysis relevant to the strategy of new customer attraction differed. First, shoppers were classified as loyal to one store on the basis of their rates of shopping at each store. Second, the 36 attribute measurements (12 scales for 3 stores) were factor analyzed, and three factors were extracted. Those attributes which loaded highest on each of the factors for each store were used as predictor variables in the discriminant analysis.The results of this study indicate that different marketing strategies may be required for increasing sales to existing customers and attracting new customers. In addition, consumers do not necessarily differentiate similar type retail stores on the same dimension.     

Testing Retail Marketing-Mix Effects on Patronage: A Meta-Analysis

Retailers have always worked to establish close relationships with customers through the retail marketing mix. Thus, the literature has a long tradition of testing the effects of various instruments on retail patronage. This meta-study synthesizes prior research into one comprehensive framework. We use 14,895 effect sizes reported by more than 239,000 shoppers from 41 countries extracted from 350 independent samples, to test the impact of 24 marketing-mix instruments on retail patronage. Specifically, we investigate the direct and indirect effects of these instruments on store satisfaction, word of mouth, patronage intention, and behavior. Product and brand management related instruments display the strongest effects on most outcome variables, whereas price, communication, service and incentive management instruments affect only selected outcomes. Distribution management turns out to be of secondary importance. However, the effectiveness of these instruments depends on the specific shopping context (food/non-food, shopping frequency, single store/agglomeration, hedonic/utilitarian), the retail environment (gross domestic product, country innovativeness, retail sales share, retail employment, Internet era), and the employed method (participant type, study design, data source). Specifically, we reveal most differences for hedonic shopping environments and developed countries. Also, the store’s advertising and atmosphere have gained importance in the Internet era, while purchase incentives, in-store orientation, and store location have lost relevance. This study contributes to a synoptic understanding of the comparable effectiveness of retail marketing instruments on retail patronage. It offers insights into the effectiveness of marketing-mix instruments and provides guidance on whether and when to invest in them. It also presents an agenda for future research on marketing-mix instruments.     

Substitution or complementarity? How the Internet changes city centre shopping

The rapid expansion of the Internet has spawned a growing body of literature on the impact of online shopping (here called e-shopping) on physical shopping. This paper explores the impact of e-shopping on shopping at city centres in the Netherlands for 25 retail categories, using a sample of 3200 Internet users. Results indicate that in the short run, e-shopping is unlikely to have a significant effect on purchases at city centre stores. In the long run, however, e-shopping may well substitute for going to actual stores. Furthermore, consumers today frequently consult the Internet before making a purchase from a store, and the city centre constitutes a source of information before an online purchase is made. The impact of these events, however, differ largely among the various retail categories and types of Internet shoppers.     

Consumers’ perception of store image of joint venture shopping centres: first-tier versus second-tier cities in China

Studies on consumer behaviour and the modelling of attributes representing store image of shopping centres in the context of a developed country have been the focus of many researchers. In contrast, although China has the largest consumer market in the world, the consumer behaviour and consumption psychology of this enormous market remain relatively unknown due to a previously “close-door” policy as well as a high degree of government intervention within the retail sector. This paper discusses the unique nature and development of the retail industry in China, and formulates a model to represent the store image of joint venture shopping centres, which are the only approved form of direct foreign investment into China's retail sector. Research on store image of shopping centres in the west as well as in China has been applied in the formulation of the model, which consists of 21 attributes. The relative importance of these 21 shopping centre image attributes is subsequently analysed between consumers in a first-tier and a second-tier city in China. By being the first of its kind to reflect on China's retail market and its joint venture shopping centres, and to compare the consumer behaviour within different levels of cities in China, this paper provides both researchers and retailers with a better insight and understanding into the psychology of Chinese consumers, and the retailing business in China.     

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.     

Shopping trip value: Do stores and products matter?

Previous research indicates the importance of shopping trip value but recognises that consumers do not shop independent of the environment; both products and stores contribute to overall shopping trip value. This study identifies the impact of product and store value on overall shopping trip value and investigates the interrelationship among their utilitarian and hedonic components. In addition, it proposes a store value scale. The authors find empirically that utilitarian store value and performance-related product value have significant effects on utilitarian shopping trip value, whereas hedonic shopping trip value is influenced most by hedonic store value and emotional product value. In addition, women appear more prone to hedonic shopping trip value yet also utilitarian store value, while men were more attentive to utilitarian product value.     

The effects of shopping value on retail outcomes: a comparison between department stores and hypermarkets

Shopping in various retail formats involves both utilitarian and hedonic value. Taiwan residents shop at department stores and hypermarkets frequently, compared to other retailers. This study contrasts the differential effects of shopping value on retail outcomes in department stores and hypermarkets. The results support predicted relationships: (1) in the department store context, (a) hedonic shopping value perceived by shoppers is higher than utilitarian shopping value; (b) hedonic shopping value has a greater effect on satisfaction and word-of-mouth than utilitarian shopping value; and (2) in the hypermarket context, (a) utilitarian shopping value perceived by shoppers is higher than hedonic shopping value; (b) utilitarian shopping value has a greater effect on satisfaction and repatronage intentions than hedonic shopping value.     

A model of consumer's retail atmosphere perceptions

The authors propose a new model of the effects of four perceived atmosphere constructs on hedonic and utilitarian shopping evaluations. Survey data demonstrate that the perceived atmosphere constructs are positively associated with both hedonic and utilitarian evaluations of retail shopping value. Importantly, the relationship between the customer's perception of the store's level of sophistication (perceived style) and the customer's overall assessment that the store is a pleasant place (perceived overall atmosphere) is different for different retail brands. The results suggest that the relationship between constructs can be used to detect differentiation between retail brands.     

When nature calls: The role of customer toilets in retail stores

The scarce previous literature indicates that the customer toilet facilities influence shopping value and should be a concern for retailers. However, customer toilets are often inadequately capitalised in retail stores. This study aims to provide a scientifically robust argument about the critical role of customer toilets in retail stores. The explanatory survey data (n=655) from a Finnish out-of-town department store is examined to explore (1) the importance that consumers place on the customer toilets and (2) the effect of toilet usage on actual shopping behaviour. The results support the assumptions of previous literature by suggesting that customer toilets are considered as an important store attribute and, more importantly, the use of toilets is associated with prolonged in-store time which, in turn, increases spending. The findings offer both academic and managerial contribution and encourage academics and practitioners to regard customer toilets as more than mere an unwanted property expense and discover their full marketing potential.     

Main-format dominance in consumers’ FMCG cross-format shopping patterns

Although cross-format patronage has become a common phenomenon in markets for Fast Moving Consumer Goods (FMCG), research on consumers’ specific cross-format combinations is limited. We study such shopping patterns by focusing on retail format utilization. A qualitative pre-study demonstrates consumers’ patronizing combinations of typical retail formats in FMCG with main-format usage and provides underlying differences in consumers’ perceived shopping utility for cross-format selection, which results from their utilized main-format. Our quantitative study reveals three clusters with main-format dominance, that is, mainly supermarket, discount store, and hypermarket shoppers complementarily utilizing fill-in formats to a much lesser extent. Whereas we found high inter-format loyalty in each consumer group, intra-format loyalty significantly varies between clusters. ANOVA and post hoc-tests concerning perceived shopping utility dimensions show that consumers’ perceived acquisition utility rather than perceived transaction costs significantly differs between consumer groups.     

Price competition in retailing: The importance of the price density function

Focusing on two determinant aspects of retail competition, prices and catchment area, this paper aims to specifically investigate the importance of the relative price density function. We answer such questions as whether it pays for a store to offer more low-priced items in a given category than its close competitors and whether a retailer should have a consistent assortment in terms of price tier frequency across all categories. To tackle these issues, we use a store-level panel database provided by IRI covering 34 categories and 150 stores in one province.     

Boundaries for the Retail Geographical Market and Factors Influencing Shoppers' Mobility

A growing number of mergers and their potentially negative impacts on consumer welfare in the retailing sector have prompted discussion on how to define the boundaries of the relevant market. This article explores the boundaries of the geographic market of daily consumer goods through an examination of factors that influence shoppers' mobility in Croatia. The study takes into consideration the purpose of the trip and differentiates between major and fill‐in shopping trips, and demonstrates that different factors impact the shopper mobility for each of the two shopping trips. It provides support for the practice of defining market boundaries empirically on the basis of region and store format specificities, taking into account prevalent shopping occasion, economic situation of the residents, size of the residential area, and geographical placement of the stores among other things. The study shows that the boundaries of the retail market may be more narrow than expected.     

How in-store educational and entertaining events influence shopper satisfaction

While recent years have seen an increased use of educational and entertaining events within the store environment, little seems known about how consumers value such events. This study investigates how the staging of education and entertainment-focused in-store events impacts on consumers’ value perceptions, arousal levels and store satisfaction. It is hypothesized that such events have a positive effect on store satisfaction but that their effects are moderated by a shopper’s motivational orientation. Findings from a scenario-based experiment among 786 shoppers from two retail categories (hardware and computer stores) provide support for this. The findings show that task-oriented consumers derive more value and satisfaction from an education-focused event than from an entertainment-focused event, while recreation-oriented consumers appreciate either type of event. The study findings imply that providing education themed events is a safer option for retailers than providing entertainment-focused events because education satisfies a wider range of shopper needs. Shoppers overall derive pleasure from entertainment but task-oriented shoppers tend to also see it as a hindrance to the convenience of shopping, with the result that for these shoppers the hosting of entertainment-focused events may result in reduced store satisfaction levels.     

Managing retailer profitability—one customer at a time!

This study examines how customer lifetime value (CLV) can be computed at individual customer level in a retail setting to maximize profitability. The study finds that maximum positive impact to CLV occurs when the customer cross-purchases, shows multi-channel shopping behavior, stays longer with the firm, buys specific product categories and purchases more frequently with the firm. Interestingly, the CLV follows an inverted U relationship with increase in return of prior purchases. Other interesting findings include a surprisingly low correlation between customer loyalty and future profitability and low correlation between stores’ historic revenues and future profitability. Several implications are suggested for retailers to manage and maximize customer profitability as well as store profitability.     

Examining the antecedents and consequences of perceived shopping value through smart retail technology

This study examines the antecedents and consequences of perceived shopping value through smart retail technology. Specifically, we propose that perceived complexity, perceived advantage, perceived novelty and perceived risk of using smart retail technologies determine consumers’ perceived shopping value, which, in turn, influences their store loyalty and intentions to adopt smart retail technology. Further, we propose that consumer innovativeness moderates these relationships. Survey responses from 338 actual shoppers with prior experience of smart retail technology were used to test the research model, while structural equation modelling was used to develop the proposed hypotheses. The present study offers a better understanding of consumer adoption of smart retail technology that may help managers to develop adoption strategies for successful implementation of smart retail technology in-store.