Understanding the older shopper: A behavioural typology

With regard to the contemporary retail environment, to date, the older shopper has been afforded limited academic attention, which is somewhat surprising given the growth of this population in the UK. Consequently, this study presents an empirically derived typology of older grocery shoppers through the application of salient retail attributes and store image dimensions developed through extensive qualitative research techniques. The findings provide an important contribution towards better understanding differences in shopping behaviour amongst older consumers. The identification of six distinct shopper types, including three new distinct groups, contributes to theory, whilst a number of potential implications for retail managers are explored in light of the findings.     

Internet or store? An ethnographic study of consumers' internet and store-based grocery shopping practices

Drawing on practice theory, this paper develops an understanding of the interrelationships between where and when consumers shop (the internet, stores, and their preferred retailers), and what they purchase (via the internet and in-store). Ethnographic case studies are presented of two consumers’ internet and store-based shopping practices, and how these intersect with their everyday lives, using data generated from multiple, complementary methods over an eighteen-month period. To this end, the paper contributes to the extant internet grocery shopping literature by offering a wider understanding of internet usage, as well as to broader debates surrounding retail change and shopping practices. The managerial implications of internet shopping on the contemporary retail grocery environment are also described and discussed.     

Retail store formats,competition and shopper behavior: A Systematic review

This study presents a systematic review of literature covering 178 articles relating to physical store-based grocery retail formats. The research questions for the review were based on drivers of consumer choice and response to marketing activities across store formats, competitive effects and conduct in the context of format evolution, and the interplay of retail formats with societal stakeholders and environmental context over time. The review reveals substantial evidence on drivers of shopper choice among formats including intrinsic household characteristics, time value factors, shopping goals and motivations, and actionable retailer factors such as location, assortment, pricing, promotion. The evidence is scarcer where such marketing activities are difficult to vary. There is limited consensus that inter-format competition is more intense than intra-format. The modernization of formats globally was found to change the way they compete and how consumers behave toward them. There is evidence of substantial impact of entry of new formats, but less guidance for incumbent retailers on how they should respond. Several gaps were identified, and research directions included a typology for format types, the role of technology, a call for more causal evidence, and deepening the empirical base for intra- versus inter-format competition and drivers of format choice.     

The effect of multi-purpose shopping on pricing and location strategy for grocery stores

Though it is a well-accepted fact that consumers indulge in multi-purpose shopping, most previous models of store choice assume that grocery shopping trips are single-purpose trips. This paper provides the first empirical analysis of multi-purpose shopping using data on actual shopping trips. A latent class factor analytic logit model is proposed, which provides a representation of the market structure of grocery store competition, while integrating; multi-purpose shopping, retail pricing format and location strategy. We conclude that incorporating multi-purpose shopping trips provides a better understanding of the competitive market structure, and discuss the managerial implications for the selection of marketing strategies.     

Shopping orientations as antecedents to channel choice in the French grocery multichannel landscape

This paper investigates the influence of consumer shopping orientations on grocery channel attractiveness and choice. It extends the concept of shopping orientation (utilitarian and hedonic) to account for emerging motivations among French consumers: shopping in line with sustainable and ethical values. In doing so, it helps profile segments of consumers who choose to shop through new online channels (Drive through) and newly deployed store formats (city stores). A sample of 300 French customers, responsible for shopping in the household, was surveyed. Hypotheses were tested through Latent Class Analysis and Structural Equation Modeling with categorical outcomes. Our findings indicate that consumers shopping orientations influence the way consumers will combine the different channels and store formats for grocery purchase. In particular, our results highlight the importance of responsible retail practices and ethical assortments in consumers' choice of online formats whilst local product orientation influences the choice of city stores and market places.     

Applying Choice Based Conjoint Measurement to Forcast Demand for a New Restaurant Category

Discounter operated supercenters are perceived as a major competitive threat to current food retailers. Their selection of both supermarket type merchandise and discounter general merchandise is perceived as an advantage to time pressed consumers. In this study, for consumers living within a five-mile radius of a Super Krnart Center, selection was a primary reason 16 percent of the respondents considered the center as their favorite grocery store but, location was the most important reason. This is one of the first studies to find that location is a primary reason for shopping a supercenter and supports the conjecture of locational importance by some industry observers. The profile of the primary supercenter shopper is a younger more educated shopper who lives close to the supercenter and values selection. Respondents who did not consider the supercenter their primary store still liked its selection but generally found the supercenter's prices high and location inconvenient.     

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.     

The interaction of retail density and music tempo: Effects on shopper responses

Research examining the effects of store environment on shoppers has found that a number of atmospheric cues have significant effects on shoppers' cognitive, affective, and behavioral responses. To date, retail atmospheric cues have been studied in isolation, instead of simultaneously, like they occur in the retail setting. This study examines the interactive effects of two atmospheric cues—retail density and music tempo—and their impact on shopper responses within a real shopping environment. Based on the schema incongruity model, it is found that shopper hedonic and utilitarian evaluations of the shopping experience are highest under conditions of slow music/high density and fast music/low density. Significant main effects of music tempo are found for behavioral responses such as approach/avoidance tendency and extent of browsing behavior. The results underscore the need to examine interactive effects of atmospheric cues to better understand the impact of the store environment on shoppers. © 2005 Wiley Periodicals, Inc.     

Investigating the impact of shopper personality on behaviour in immersive Virtual Reality store environments

The increasing availability of immersive Virtual Reality (VR) hardware in private households has opened up significant opportunities for innovations in online retailing. Online retailers can develop realistic, albeit simulated, three-dimensional retail environments that use immersive elements to create a more exciting online shopping experience. Nevertheless, to date, very little is known about how observed shopper behaviour in immersive VR store environments compares to existing knowledge in the physical or other online retail research literature. To that end, this paper focuses on human personality traits and whether these translate to familiar observations of in-store shopper behaviour. Specifically, the research examined the ‘Big Five’ personality traits – agreeableness, conscientiousness, extraversion, neuroticism, and openness to experience, and their impact on purchase behaviours such as product inspection time, proportion of private label purchases, and impulsive buying. It is further investigated how the purchase behaviours impact the outcomes of the shopping trip. The results revealed a variety of expected relationships between purchase metrics and the outcomes of the shopping trip; however, in stark contrast to the findings of extant studies, shopper personality did not show any impacts on the investigated purchase behaviours. Further research is needed to determine whether this failure to replicate past studies of shopper personality was, in fact, due to differences in the store environment or rather due to the moving from survey-based method of shopper data collection to naturalistic observation. Nonetheless, this finding has important implications for e-retailing strategies and market research practices.     

An exploratory look at supermarket shopping paths

We present analyses of an extraordinary new dataset that reveals the path taken by individual shoppers in an actual grocery store, as provided by RFID (radio frequency identification) tags located on their shopping carts. The analysis is performed using a multivariate clustering algorithm not yet seen in the marketing literature that is able to handle data sets with unique (and numerous) spatial constraints. This allows us to take into account physical impediments (such as the location of aisles and other inaccessible areas of the store) to ensure that we only report feasible centroid paths. We also recognize that time spent in the store plays an important role, leading to different cluster configurations for short, medium, and long trips. The resulting three sets of clusters identify a total of 14 “canonical path types” that are typical of grocery store travel, and we carefully describe (and cross-validate) each set of clusters. These results dispel certain myths about shopper travel behavior that common intuition perpetuates, including behavior related to aisles, end-cap displays, and the “racetrack.” We briefly relate these results to previous research (using much more limited datasets) covering travel behavior in retail stores and other related settings.     

Online Shopper Motivations, and e-Store Attributes: An Examination of Online Patronage Behavior and Shopper Typologies

e-Stores and online shopping have become important aspects of a retailer's strategy. Previous research suggests that online shoppers are fundamentally different from traditional offline shoppers. However, based on the Big Middle Theory (Levy et al. 2005), the authors believe that there are segments of online shoppers that are very similar to regular shopper groups. To determine this, online shopping motivations and e-store attribute importance measures are separately used as the basis to develop online shopper typologies. Results reveal that there are more similarities than differences among traditional and online store shoppers. However, there are a few unique shopper types present at online stores, attracted by the distinctive characteristics and attributes of the online retail environment. The findings offer interesting implications for online retail strategy.     

Communicating nutrition information at the point of purchase: An eye‐tracking study of shoppers at two grocery stores in the United States

Providing nutrition information at the point of purchase is one approach that can be used to help consumers adopt and maintain a healthy diet. Previous research has examined consumer self‐reported notice and use of the information as well as how the design of the information affects its attention and use in a laboratory environment using eye‐tracking methodology. This study advances the literature by applying eye‐tracking methodology to explore consumer visual and choice behavior in a real shopping environment, and by recognizing that nutrition information competes with other visual stimuli in the store and consumers are vulnerable to a “limited attention span” for nutrition information in a shopping setting. Data came from a cross‐sectional survey conducted in two grocery stores in the United States in July 2014 with a convenience sample of 60 grocery shoppers while they were selecting and buying items from one of three product categories (ready‐to‐eat cereal, snacks, and soup). The study finds that point‐of‐purchase nutrition information faced strong competition for participants’ attention from other visual elements in a real shopping environment and the attention is dominated by nonnutrition elements, particularly brand/product name, product imagery, and product pricing. Nutrition‐related information, on the other hand, received much less attention, with claims and front‐of‐package nutrition symbols seen by more participants than the Nutrition Facts label. The study suggests that to more effectively enable nutrition information to “catch the eyes” of shoppers at the point of purchase, increasing consumer exposure to the information and enhancing shopper education may merit further investigation.     

Investigating the impact of Internet of Things services from a smartphone app on grocery shopping

This study investigates the impact of Internet of Things (IoT) services from a smartphone app in a retail grocery shopping situation. It examines four variables, namely price, expiry date, quality indicators and offers. All four variables were examined in relation to two levels; traditional information and IoT services. A scenario was arranged whereby 226 participants were to purchase, among other products, fresh salmon in a grocery store using the store's smartphone app. Findings from a conjoint study show that the following IoT services; “updated expiry date”, “aggregated national customer experience index”, and “personalized offer based on product in the basket” evoked the approach and abated avoidance tendencies to explore the smartphone app, while simultaneously increasing the likelihood of buying based on information from the app. The IoT service “Real-time price” had a varied impact on participant approach-avoidance tendencies to interact with the app. Scenario simulation analysis shows that some IoT services can be a deal-breaker in a competitive grocery market. Consequently, analyzing the impact of IoT services through the lenses of approach-avoidance distinction and choice indication can help retail grocery managers develop more effective marketing strategies that deliver convenience to the consumers.     

Black middle class township shoppers: a shopper typology

Due to an increase in spending power amongst Black middle class, this growing segment has become a lucrative investment opportunity for many retailers in South Africa and most emerging markets. The purpose of this study is to segment township consumers according to their demographics, life stage, attitudes towards township shopping centres and Living Standards Measure, to understand shopping patterns of township consumers. A survey among Soweto Black middle class township respondents was conducted, and maximum likelihood factor analysis was used to identify attitudes towards township mall factors. The study revealed five factors namely entertainment, convenience, mall essence, staff and mall basics, which were all consistent with previous studies, with the exception of staff and mall basics, which was revealed in this study. A K-means cluster analysis was then used to segment township shoppers according to their attitudes. Four shopper segments were discovered, namely disappointed crusaders, upcoming loyals, social seekers and local loyals, which, despite investigating shopper attitudes in place of shopper behaviour alone, were similar to well-establish shopper typologies. Each segment was profiled according to demographic variables, attitudes as well as shopping patterns. Results, therefore, suggest that retailers and developers need to consider the unique needs and differences among Black middle class consumers when developing retail strategies as they reveal unique characteristics from typical shopper typologies. Given similarities in some emerging countries such as India, the findings of this study could be generalized to other middle class consumers from emerging markets. Similar shopper segments may arise, which may be consistent with previous shopper typology studies and new segments unique to emerging market middle class consumer may be unveiled.     

Consumers’ multifaceted deal knowledge in a grocery retail setting

Despite its relevance to retailers, studies of consumers’ deal knowledge have been few. This study explores consumers’ deal knowledge before, during, and after the store visit applying a between-subjects field-study design with 1204 respondents. In particular, the authors investigate perception of deal price status, typical deal price knowledge, and deal-spotting ability. Results show reasonably stable knowledge of typical deal prices, while knowledge of deal price status and deal-spotting ability improves significantly during grocery shopping. Surprisingly, consumers’ deal knowledge is not conditional on purchasing a special thus indicating that most consumers, consciously or unconsciously, scan for promotion signals when shopping groceries. In addition, the results suggest consumers are not easily fooled, as the vast majority is able to spot ‘good’ and ‘bad’ deals, while also possessing typical deal price knowledge. Furthermore, the findings suggest that consumers store internal reference deal prices. Retailers are therefore well advised to consider mixed depth and creative discount patterns to prevent ‘perfect’ perceptions of typical deal prices.     

Why Private Label Grocery Brands Have Not Succeeded in Asia

Abstract

Lower disposable income among Asian grocery shoppers, heavily discounted private label grocery brands, relative to national brands, and a favorable retail distribution structure would seem to predispose the former to success. But this has not been the case. To learn why private label grocery brands have not succeeded in Asia, two identical shopper surveys were conducted in Wichita, Kansas (United States) and Prakanong-Bangna, Bangkok (Thailand) to examine possible factors relating to retail grocery shopping differences. The authors found that poor market knowledge, and the tendency of Thai consumers to infer product quality by using extrinsic cues such as high price were salient. Additionally, Thai choices were influenced more by social factors than Americans, making them less prone to bargain hunting. The paper concludes with the discussion of managerial implications and offers recommendations to retail chain owners operating in the region.     

Polygamous Store Loyalties: An Empirical Investigation

Grocery store loyalty has been traditionally viewed as a trait of consumers toward a particular store for their overall shopping needs. In this study, we argue that store loyalty shall be regarded as category specific trait, that is, a consumer could be loyal to store A in category one while at the same time be loyal to store B in category two. We name this consumer behavior polygamous store loyalties.We use an in-home scanning panel dataset that tracks purchases of 1,321 households in 284 grocery categories across fourteen retail chains over a 53-week period in a large US market. First, we provide model free evidence of polygamous store loyalties in the data, even though the overall store loyalty based on the traditional view is low. Next, we propose a model to separate category specific effects from overall store level effects. Finally, we discuss how retailers can use the results to gain a new perspective on store attractiveness to improve overall store patronage.     

Save or (over-)spend? The impact of hard-discounter shopping on consumers' grocery outlay

An increasing number of consumers have come to patronize a hard discounter (HD) to save on their grocery budget. Given the HDs' rock-bottom prices, a complete switch from the traditional supermarket (TS) to the HD format would, indeed, substantially reduce grocery spending. However, consumers typically visit the HD on top of a TS, leading to a more complex purchase allocation and decision process. In addition to limiting the potential savings to part of the basket, these multiple store shopping patterns may therefore result in depletion of self-control resources and to self-licensing, consumers using realized savings to justify additional indulgent purchases. In this study, we explain and empirically analyze the effect of HD patronage on consumer spending, taking the selected shopping pattern (single versus multiple stores, visited on separate versus combined shopping trips) into account. To this end, we use scanner panel data on households' actual weekly purchase behavior. We also examine household differences in these effects, and relate them to household characteristics.Our results show that shifting the entire basket to the HD entails substantial savings. Yet, for the majority of consumers, adding a HD to the store set does not reduce grocery outlay: visiting the HD and TS on separate shopping trips leads to a “status quo”, and visiting them on combined shopping trips even enhances weekly spending. While consumers pay less per unit bought at the HD, this is (more than) offset by the purchase of larger quantities across a broad range of product categories, and of more expensive items at the TS. Especially older consumers or larger households, and consumers who shop more frequently or are easily enticed by promotions, are bound to overspend.     

Perceived control and shopping behavior: The moderating role of the level of utilitarian motivational orientation

Examining the influence of the retail environment on shopping behavior, Kaltcheva and Weitz (2006. When should a retailer create an exciting store environment? Journal of Marketing 70 (January), 107–118) showed that shopping motivation (utilitarian versus hedonic) moderates the relationship between arousal and shoppers’ behavior in the store environment. In particular, they found that high arousal decreases intentions to visit for consumers with a utilitarian motivational orientation. Focusing on this particular type of shopping motivation, we hypothesized that the negative effects of arousal-inducing store environments occur for consumers with higher utilitarian motivations because these environments prevent those specific consumers from controlling their shopping experience. We consequently adapted Kaltcheva and Weitz's (2006) framework by building a model articulating perceived control, stress, pleasure, and return intent. A multigroup analysis of consumers with high versus low utilitarian shopping motivations identified in a field study conducted in Europe gave support to our hypothesis.