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.     

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.     

Is the shopper always the king/queen? Study of omnichannel retail technology use and shopping orientations

Technology is transforming how retail services are delivered and the experience lived by consumers. Online and offline channels are converging to deliver a seamless omnichannel shopping experience. However, despite retailers’ significant technology investments, shoppers do not always adopt omnichannel usage. Understanding omnichannel retail technology (ORT) usage and how it interacts with shopping orientations is thus an important research challenge.The model is tested through a field study that targets real users of a 3D virtual reality application.The results first show that omnichannel use positively influences performance and effort expectancy perceptions. Second, the effect of ORT use on decision quality depends on task orientation. Third, task orientation moderates the effect of omnichannel use on performance expectancy. Fourth, recreational orientation positively influences shoppers’ perceived experience. Fifth, perceived value is an important predictor of retail patronage intentions.     

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.     

“I Love the Value From Shopping at Mass Merchants!” Consequences of Multichannel Shopping Value

The importance of consumer value-driven strategies is highlighted in the marketplace, especially with economic stagnation. The aim of this study is to shed light on the mechanisms underlying consumers’ value perception of, satisfaction with, and loyalty intentions toward shopping at mass merchants in a multichannel retail environment by using their shopping orientations as predictors. Findings based on a national sample online survey of 1,411 U.S. consumers revealed that multidimensional consumers’ shopping value perceptions regarding shopping at multichannel mass merchants had significant and positive effects on their consumer satisfaction with and loyalty intentions toward shopping at the multichannel mass merchants.     

The Impact of Website Quality on Information Quality,Value, and Loyalty Intentions in Apparel Retailing

This study investigated relationships among website quality, perceived information quality, perceived value, and loyalty intentions in the context of apparel online shopping. Analysis of data using structural equation modeling showed that among the website quality dimensions, interactivity, online completeness, ease of use, and entertainment significantly influence perceived information quality. Perceived information quality affects perceived value and loyalty intentions and perceived value influences loyalty intentions toward apparel retail websites. The post-hoc test revealed that entertainment and trust affect perceived value. Online completeness and entertainment were found to influence loyalty intentions. Strategic suggestions are provided for e-retailer improvement of website information quality, such as utilizing entertaining and engaging devices and designing their websites for consumer comprehension and enjoyment during the shopping experience.     

International retail format transfer: A comparison study of Australian and U.S. warehouse club members

Costco successfully transferred its Warehouse Membership Club (WMC) format to Australia. This research: 1) develops a conceptual framework to examine the role of consumer perception of format-specific core attributes in shaping the hedonic shopping experience and customer loyalty; and 2) compares Australian consumers' responses to the novel WMC format with U.S. consumers' responses to the familiar, mature format. We collected survey data from Australian and U.S. Costco members after Costco's entry into Australia's retail market and we tested the proposed model with a multiple-group structural equation modelling technique. Our findings suggest that value and hedonic shopping experience contribute to consumer loyalty in both countries. However, value is perceived as more important in shaping hedonic shopping experience, but less important in building loyalty in Australia than in U.S. When transferring a retail format that is novel to host country consumers, global retailers should factor in the novelty effect and emphasize the management of core format attributes that embrace the differences and carry particular importance in building customer loyalty.     

Traditional bazaar or supermarkets: A probit analysis of affluent consumer perceptions in Hanoi

Abstract

This paper sheds light on the preferences and behaviour of Vietnamese consumers in an emerging market economy. We analysed survey data of affluent consumers in Hanoi by using a binary choice Probit model for traditional bazaars versus supermarkets. The purpose of the analysis was to measure the factors which influence decision-making by consumers when selecting particular retail outlets for shopping. Our results show that freshness, price and convenience are important in shaping the choice by consumers for traditional outlets for fresh food, while price played a key role in selecting shopping outlets for processed food and drinks and non-food products. The results provide a basis for understanding the strengths and weaknesses of the old and the new retail outlet formats.     

Satisfaction,loyalty and repatronage intentions: Role of hedonic shopping values

Today the Indian traditional retail shopper visiting various hypermarkets formats for purchasing and enjoying their valuable time with their family members and friends, as these formats offer hedonic shopping values. Therefore, this research paper focused on hypermarket shoppers of central India and the main objective of this study is to identify the role of hedonic shopping values on creation of satisfaction, loyalty and repatronage intentions with the help of proposed research framework based on 329 responses. Confirmatory factor analysis and structural equation modeling (SEM) is use to analyze and validate the proposed research framework. The result supports the relationship between hedonic shopping values with customer satisfaction, loyalty and repatronage intentions. The study also demonstrate the moderating role of gender on these relationship, which shows that both male and female consumer have different level of shopping behavior when it comes to see the influence of hedonic shopping values. Therefore, this research paper would help hypermarket retailers to design their retail store environment more attractively to maintain the optimum customer satisfaction level that enhance the loyalty and repatronage intentions in the customer in this current competitive retail scenario.     

Mediated-moderated effects: High and low store image,brand awareness,perceived value from mini and supermarkets retail stores

This paper addresses how different store formats moderate the relationship between store image and purchase intention, mediated by brand awareness and perceived value. Questionnaire data was collected through face-to-face interviews with retail customers on the streets of a city in southern Brazil. Hypotheses testing were performed using the partial least squares structural equation modeling, supported by Smart-PLS and the Bootstrapping procedure run in the Process software. The model's sample included 298 retail customers for each store format (supermarket and mini-market). Results showed that store image positively impacted customer purchase intentions and the mediators, perceived value and brand awareness, which had a distinct effect on the direct relation of store image and purchase intention. Store format presented moderation effects on the relation between store image and brand awareness for both store formats: the higher the perception of store image, the greater the consumer's brand awareness. However, store format did not present a moderating effect on the relationship between brand awareness and purchase intention. Store image was found to be an important independent construct that improves brand awareness and increases perceived value. The number of mini-markets in Brazil is increasing, indicating that they are supplying a need unmet by supermarkets. The study design's implementation in the city streets, respondents were requested to imagine store image, which may have affected some of the parameters. The model integrated store image as an important construct influencing purchase behavior and this study presented a mediated-moderated model with managerial implications.     

Where to refuel: Modeling on-the-way choice of convenience outlet

For many goods consumers do not make a special trip to a store. Especially for a convenience good such as fuel they will buy the product while on-the-way to some final destination. This paper introduces on-the-way choice of retail outlet as a form of convenience shopping. It presents a model of on-the-way choice of retail outlet and applies the model in the context of fuel retailing to explore its implications for segmentation and spatial competition. The model allows analyzing how choice of retail outlet varies not only with spatio-temporal variables (distance, detour, local competition and agglomeration) but also with trip-related characteristics such as time of day and prior awareness of one's purchase need. The model is a latent class random utility choice model. An application to gas station choices observed in a medium-sized Asian city show the model to fit substantially better than existing models. The empirical results indicate consumers may adopt one of two decision strategies. When adopting an immediacy-oriented strategy they behave in accordance with the traditional gravity-based retail models and tend to choose the most spatially convenient outlet. When following a destination-oriented strategy they focus more on maintaining their overall trip efficiency and so will tend to visit outlets located closer to their main destination and are more susceptible to retail agglomeration effects. The paper demonstrates how the model can be used to inform segmentation and local competition analyses that account for variations in these strategies as well as variations in consumer type, origin and time of travel. Simulations of a duopoly setting further demonstrate the implications.     

An Investigation of Consumer Brand Choice Behavior Across Different Retail Formats

There has been a blurring with respect to the retail formats because of competition and proliferation of different types of formats. In this research, we use a unique scanner panel dataset to investigate how brand choice behavior varies for the same consumer shopping for the same brand across different retail formats. We develop hypotheses pertaining to promotion sensitivity, price sensitivity, package size preference, and effects of demographic and shopping variables on consumer brand choice behavior and test them using a multi-format probit choice model that allows for the estimation of the cross-format differences with respect to the above. We find that consumers exhibit different promotion and price sensitivities in brand choice behavior between the mass merchandise format and supermarkets. Discussions and insights are provided.     

Shopping Motivation: Investigating the Shopping Process and Outcomes of the Retail Experience at a Craft Fair

The research addresses the question of when people succeed or fail to achieve shopping goals that bring them to a retail outlet, in this case a craft fair, and the consequences of this for customer satisfaction. A quantitative study, carried out with 398 craft fair shoppers, revealed that dimensions of in-store behaviour had various but significant influences on the relationships between prior intentions to pursue certain types of shopping goals and attainment of those goals. Further, the attainment of important shopping goals had a significant effect on consumers' evaluations of the shopping experience and the craft fairs as well as their future behavioural intentions. The main implication of the research is that attempts should be made to facilitate the shopping process and account for consumers with multiple goals.     

中国消费者的购物价值研究:以零售经销店为切入点(英文)

本文旨在探讨中国消费者的购物价值。在利用定性研究所获得的购物价值维度的基础上,本文还采用量化研究来进一步评估消费者在两类零售经销店——百货商店和超型市场中的购物体验及相应的购物价值观。研究结果表明,中国消费者倾向于同时到上述两类零售经销店购物,并从中获得自我满足感和实现社会交往;同时,他们在百货商场获得更多的享乐性购物价值,而在超市里则获得更多的实用性购物价值。这些研究结果凸显了购物体验和购物价值对中国消费者的重要性。     

Perceived value,transaction cost,and repurchase-intention in online shopping: A relational exchange perspective

This study proposes a framework to understand the impacts of both value-related and transaction cost-related factors on repurchase intention from online shoppers' perspective. In particular, this study defines the construct of cost as a three-component conceptualization (i.e., information searching cost, moral hazard cost, and specific asset investment). Based upon empirical evidence on a survey of 887 online shoppers, this study shows that consumers' perceived value and each cost component are positively related to repurchase intention. Importantly, information searching cost exerts the most significant influence on repurchase intentions among the four relational factors. The result suggests that providing sufficient cues to reduce consumers' information searching cost is the core element of repurchase intention formation. This article closes with theoretical and practical implications.     

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.     

Exploring Perceived Channel Price,Quality, and Value as Antecedents of Channel Choice and Usage in Multichannel Shopping

This study investigates consumer perceptions of price-quality-value based on shopping channel attributes as antecedents of channel choice and usage in multichannel shopping environments. Findings indicate that channel usage intention is directly influenced by consumer perceptions of channel value and indirectly by consumer perceptions of channel quality and channel price. Consumer perceptions of channel attributes most important to channel usage intention include utilitarian and hedonic value, service and merchandise quality, and monetary and non-monetary price. Managerial implications for retailers suggest a need for strategic management and differentiation of channel attributes to enhance channel value perceptions and increase channel usage intention.     

Integrating emotions in the analysis of retail price images

Most studies on retail price images do not capture the complete domain of this construct because they predominantly measure the cognitive dimensions of price perception. The current paper extends this research by integrating emotions in the analysis of retail price images. Results from an empirical study demonstrate that several price‐related emotions mediate the impact of cognitive price image dimensions on intentions to shop in retail stores. Such effects exist for distress, anger, contempt, shame, and guilt. Furthermore, these emotions have an incremental effect on shopping intentions beyond the mere cognitive price image dimensions. Hence, integrating these emotions in the analysis of retail price images improves the prediction of such intentions considerably. An analysis of direct, indirect, and total effects shows that price‐level perception influences shopping intentions negatively via increased contempt, shame, and guilt, but positively via value for money. Value proves to be a central dimension of a retailer's price image as value influences shopping intentions directly, but also via reduced distress, anger, contempt, shame, and guilt. The results yield important research and management implications, as integrating emotions in the analysis of retail price images extends the understanding of customer reactions to retailers' pricing activities. © 2011 Wiley Periodicals, Inc.     

Augmented reality shopping application usage: The influence of attitude,value, and characteristics of innovation

Consumers' intentions are crucial to the wide usage of augmented reality shopping applications (ARSAs). Combining innovation diffusion, perceived value, and attitude theories, this study proposes a theoretical model that identifies the antecedents of consumers' innovation to use ARSAs and specifies their interrelationships. A total of 379 consumers were surveyed using questionnaires, and the data were analyzed through confirmatory factor analysis and structural equation modeling. Results show that the effects of the perceived relative advantage, perceived compatibility, and perceived observability on consumers' intentions to use ARSAs are mediated by consumers' attitudes toward ARSAs. In addition, attitudes have an indirect impact on consumers' intentions to use ARSAs through perceived value. Theoretically, this study synthesizes behavioral theories anchored on innovation and marketing to explain consumer's use intention. Managerially, this study provides strategic recommendations for technology companies developing ARSAs and retailers wishing to adopt ARSAs.