Assessing consumer logistics functions in grocery shopping: Evidence from an emerging market

Abstract

Consumer logistics (CL), focuses on the role of consumers in the logistical processing of goods for the purpose of consumption from point of acquisition to the point of disposal. The objective of this study is to test and validate the CL scale as introduced by Bahn, Granzin, and Tokman for grocery shopping in a previously unexplored country setting, namely in Turkey. Our findings show in contrast to Bahn et al. only six CL functions: information search, transportation management and materials handling, storage management & inventory needs assessment, contingent inventory operations & product acquisition, intra-household communication, and interdependent transportation operations. These six CL functions are more applicable for an emerging market, such as Turkey. These findings are consistent across the different socio-demographic characteristics in our sample.     

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.     

Purchase frequency,sample selection,and price sensitivity: The heavy-user bias

We study the relationship between purchase frequency and volume and choice behavior as summarized by brand preferences and price sensitivity. Our most striking finding is that consumers with high purchase frequency or high purchase volume are much more price sensitive and have more sharply defined preferences for national brands than consumers with low frequency or low volume of purchase. In much of the choice literature, analysis is confined to households that have on average a larger number of purchases than is representative of the ERIM panel. Our findings suggest that some caution should be exercised in interpreting studies that employ purchase-frequency or purchase-number sample inclusion rules. Our findings also support an information theoretic point of view in which households become more price sensitive via costly acquisition of information about the distribution of prices.We acknowledge helpful comments from Greg Allenby and Bob Blattberg. Support from the Micro-Marketing Project at the Graduate School of Business at the University of Chicago is gratefully acknowledged. Byung-Do Kim is the corresponding author.     

Store and store format loyalty measures based on budget allocation

In highly competitive environments, such as retail markets, characterized by a growing heterogeneity of demand and the proliferation of new retail formats, cross-shopping behavior between stores and formats is becoming increasingly common. This process makes customer loyalty a key strategic challenge for retailers that want to consolidate their position within the market. To contribute to the analysis and comprehension of this reality, the authors propose and assess different objective indicators of store loyalty, store format loyalty, and intra-format store loyalty based on budget allocation. Specifically, they analyze the role of retail format in observable loyalty patterns in a market. Through an empirical analysis of grocery purchase patterns of a sample of 580 Spanish households, the authors find that diverse objective loyalty indicators based on budget allocations provide very similar information from a practical point of view. They also find that consumers' regular use of various formats (specifically, supermarkets, hypermarkets, and discount stores) for their purchases explain observed disloyalty better than does purchasing in several stores within these formats. The observed patterns reveal that retail formats define differentiated store profiles that relate to the benefits sought in different purchase situations.     

End-User Contribution to Logistics Value Co-Creation: A Series of Exploratory Studies

ABSTRACT

Recently, retailers have been investing in technology-based platforms such as mobile applications to involve more of their customers in logistical value co-creation activities. Therefore, it would be important to guide these efforts by providing the retailers with a list of various consumer logistics value co-creation activities and help them better organize their technological investments by categorizing these functions. The objective of this study is to explore the logistics activities through which the end users can contribute to co-creation of value based on the notions of Service-Dominant Logic. A series of 4 exploratory survey studies revealed 10 end-user logistics functions and important implications for practice.     

Effectiveness of In-Store Displays in a Virtual Store Environment

This article examines in-store display effectiveness in an online grocery store and concentrates on two main issues. First, considering the more artificial and functional virtual store environment, we examine whether online in-store displays (ISD) produce a similar boost in sales as they do in offline stores. Second, we examine the moderating effect of display characteristics by comparing the effects of different display types. The results show that (1) online ISD can substantially increase brand sales and (2) ISD that preempt competition through a first-order and isolated position outperform ISD that attempt to make the product stand out in the shopping zone.