Evaluating the potential of agent-based modelling to capture consumer grocery retail store choice behaviours

Evolving consumer behaviours with regards to store and channel choice, shopping frequency, shopping mission and spending heighten the need for robust spatial modelling tools for use within retail analytics. In this paper, we report on collaboration with a major UK grocery retailer to assess the feasibility of modelling consumer store choice behaviours at the level of the individual consumer. We benefit from very rare access to our collaborating retailers’ customer data which we use to develop a proof-of-concept agent-based model (ABM). Utilising our collaborating retailers’ loyalty card database, we extract key consumer behaviours in relation to shopping frequency, mission, store choice and spending. We build these observed behaviours into our ABM, based on a simplified urban environment, calibrated and validated against observed consumer data. Our ABM is able to capture key spatiotemporal drivers of consumer store choice behaviour at the individual level. Our findings could afford new opportunities for spatial modelling within the retail sector, enabling the complexity of consumer behaviours to be captured and simulated within a novel modelling framework. We reflect on further model development required for use in a commercial context for location-based decision-making.     

The influence of national culture and industry structure on grocery retail customer loyalty

This study examines, for the first time, the influence of national culture and industry structure on customer loyalty in grocery retailing. Grocery retailers have a long and continued history of international expansion and it is vital to understand how loyalty can be nurtured in different contexts. Thematic analysis of focus groups conducted in the culturally and structurally disparate countries of the United Kingdom and Sri Lanka provide unique insights. Key differences have been identified around consumer preferences and perceptions of loyalty programmes and the key drivers of different loyalty types. Theoretical and managerial implications are discussed.     

Virtual store layout: an experimental comparison in the context of grocery retail

Interface design and the interaction between customer and computer are factors critical to business effectiveness over the Web. A key aspect of conventional retailing is store layout; an analogous aspect in virtual retail is virtual store layout. This paper reports on an experimental investigation into the use of three different layouts in online grocery retailing: freeform, grid, and racetrack. These three most common conventional retailing layout types were transformed into virtual layouts for computer-mediated interfaces. Subjects in Greece and the UK participated in a laboratory experiment: they were given a planned shopping task with money to spend, and performed their shopping through a virtual store with layout as the manipulated variable. The results show that layout significantly affects online consumer behavior, but that predictions generated from the literature of conventional retailing about differences in the outcome of layouts do not generally hold in a virtual setting. Some of the findings can be explained by reference to research in Human Computer Interaction (HCI).     

Market orientation of retail brands in the grocery chain: the role of supplier relationships

The role of retail brands has grown gradually and today they are regarded as one of the key strategic factors in the positioning of retail firms. However, developing retail brands that are competitive in terms of price and quality as well as in offering unique and specific values to consumers requires long-term, mutually beneficial retailer–supplier relationships that involve information exchange and a combination of the parties' core competencies and resources. This study investigates inter-firm activities in developing market-oriented retail brands in the grocery chain in four European countries. The aim is to identify critical factors that influence the role of these activities. Factors related to the internal organization, the nature of the supplier relationships and the market structure are discussed.     

Patterns of consumer response to retail price differentials

Decomposing price elasticity suggests that the major impact of promotions is on brand switching rather than increased consumption. Consumers may also buy smaller quantities of more expensive brands when compared to cheaper ones (inter-brand elasticity). Using panel data for the purchases of 80 consumers buying nine product categories over a 16-week period, we verified that inter-brand elasticities occur, and report the relative importance of intra- and inter-brand elasticities in determining quantity price elasticity per shopping occasion for the product category. Brands were classified by informational (socially mediated) and utilitarian (product-mediated) benefits. Intra-brand elasticity was higher than utilitarian inter-brand elasticity, which was higher than informational inter-brand elasticity.     

Drivers of customer satisfaction in the grocery retail industry: A longitudinal analysis across store formats

The design of satisfactory shopping experiences remains one of the main challenges for building long-term profitability in modern retailing. Therefore, companies are interested in identifying the key drivers of the service execution that shape customer shopping satisfaction. In this study, we developed a standardized questionnaire for evaluating the shopping experience, and conducted a large study in several grocery stores across different formats during a time span of five years. The resulting rich dataset enabled us to uncover interesting patterns using both individual and store-level analyses. Our results indicate that larger store formats are associated with greater satisfaction levels. When looking at the marginal effects of the various elements of customer service, we found that some specific elements of service execution present significant differences across store formats. In addition, we identified loss aversion on shopping experience, since poor performance impacts more on customer satisfaction than superior performance. Finally, our store-level analysis sheds light on how changes in the service performance determine changes in the shopping experience in the same store. These implied results may guide store and chain managers to evaluate the role of the store execution elements better, and to design the customer shopping experience successfully.     

Drivers of customer likelihood to join grocery retail loyalty programs. An analysis of reward programs and loyalty cards

This paper aims to identify which personal features of customers may determine their likelihood to join a grocery retail loyalty program. We consider five aspects: price sensitivity, search for variety, shopping enjoyment, attitude toward loyalty schemes, and one personality trait: privacy concerns. Some of these variables have already been explored in the literature. Where our research breaks new ground is in establishing the difference between profiles of customers attracted by two of the most common types of loyalty programs currently used by grocery retail firms: a reward program and a loyalty card. The two kinds of program evidence differences in how they are managed, and we posit that the drivers of likelihood to take part in each are different. The study was carried out using logistic regression with a sample of 600 clients of a Spanish supermarket chain. Findings show that one particular type of customer is more likely to take part in these schemes: those displaying little shopping enjoyment, who are greatly concerned with privacy, and who show a favorable attitude toward loyalty programs in general. Furthermore, as expected, differences were observed between drivers of participation likelihood in reward programs and loyalty cards.     

The social media response to the rollout of legalized cannabis retail in Ontario,Canada

With Canada becoming the first G20 country to legalize the recreational use of cannabis, there has been increasing interest in the emergence of this new retail market. The research utilizes social media analytics to analyze the public's response to the rollout of the government-controlled cannabis retail stores: Ontario Cannabis Store (OCS). The research analyzes 17,162 tweets mentioning the OCS (@ONCannabisStore) on Twitter in the one-year period following the legalization of recreational cannabis. Using thematic analysis, 19 codes are identified and further categorized under six themes—i.e., consignment, product, retail model, policy, producers, and consumers. The research provides valuable insight into the public's perceptions of the newly legalized cannabis retail market on social media. As a practical implication of the research, key concerns and issues with the initial retail rollout are identified, which provides insight into the evolution of an illegal to legal retail market. The methods can be used by future researchers, policy makers, and emerging cannabis retailers to gather and understand cannabis consumers' opinions on social media. Furthermore, the findings can be leveraged to inform future government policies and decisions around the emergence of this new retail sector.     

The competitive response of small,independent retailers to organized retail: Study in an emerging economy

This study aims to decipher the competitive response of small, independent retailers in an emerging economy – India – to the onset of competition from large, organized retailers. The competitive behaviour is comprehended in terms of patterns of retail functional and business strategies, in further classifying the retailers into strategic groups, and finally by assessing the performance of these clusters. The study is based on a primary field survey of 605 grocery shops in two cities in India. The findings of the research point towards the presence of distinct strategies, strategic groups, and the positive impact on small retail performance of adopting distinct retail functional and business strategies.     

韩国零售巨鳄易买得为何咄咄逼人

蓄势8年后，韩国零售巨鳄易买得突然发力，加速扩张，接连在上海开出2家新店。“巨鳄”意欲何为?易买得创始人之一具学书一语抖落天机：“韩零售业已日趋饱和。中国是一个巨大市场。”     

The role of product history in consumer response to online second-hand clothing retail service based on circular fashion

The circular fashion system (CFS) posits that clothes not only need to be designed and produced sustainably but also need to circulate among consumers for as long as possible to minimize waste. Fashion industry experts believe that circular fashion will be the dominating future trend of the industry, and many brands and start-ups have launched platforms following the CFS where consumers can exchange or donate their used clothes. However, circular fashion still needs to overcome the negative images associated with second-hand clothes, such as contamination. What can decrease consumers' concerns with used clothes as well as promote circular fashion effectively among consumers? Based on the narrative competence theory, this study examines the effects of providing the product history of clothes on enhancing consumers' trust, perceived benefits, attitude, and usage intentions toward circular fashion service. An online experiment was conducted with 238 U.S. consumers. Results revealed that providing product history enhances consumers' trust toward the service and the perceived hedonic, social, and economic benefits of the service. Greater trust and hedonic benefits of the service enhance consumers’ attitude toward the service, which consequently increase their intentions to use the service. Implications and suggestions for future research are discussed in this paper.     

The influence of consumer concern about global climate change on framing effects for environmental sustainability messages

It is becoming increasingly evident that current patterns of consumption are not sustainable in the long term. Clearly, the need to persuade consumers to adopt more sustainable lifestyles has never been more urgent. The present research contributes to our understanding of the effects of message framing by considering the potential moderating influence of consumer concern about global climate change within the context of sustainable consumption. The results of two experiments demonstrate that the US consumer’s level of concern for the message-specific issues moderates the strength of the framing effect; effects are larger when concern about climate change is low. In addition, when concern is low, more negative framing and a prevention focus have more favourable persuasive effects. The implications of these findings for consumer welfare and public policy are discussed.

Sustainability is achieved when all people on Earth can live well without compromising the quality of life for future generations.

(Jucker 2003)

     

两招六式提升电信积分吸引力

<正>很多行业和企业都在做积分,电信运营商也不例外。但圈内的人都知道,电信运营商的积分做得并没有当初设想得那么好。大家经常说的一句话是:"每年在积分上投入很多,但效果很差(低认知、低满意度)、回报很少(事实上是很难衡量)。"大家解决这些问题的常用手段是:问问用户"你到底喜欢兑换什么啊",优化一下查询和兑换界面与流程,做几场声势浩大的推广活动等等。听闻最近国内又有运营商正在筹划建设自己的积分体系,准备前仆后继投身到积分大战中。看来我不得不抛砖引玉发表点意见了。     

区域市场网上零售相关问题探讨

网上零售(e-Retail)是指通过互联网或其他电子渠道,针对个人或者家庭的需求销售商品或者提供服务.文章分析了区域市场网上零售相对其它零售方式的优势,指出其发展制约因素,并探讨了相应的发展对策.     

Behavioral reasoning perspectives to brand love toward natural products: Moderating role of environmental concern and household size

Consumers do not easily trust brands’ claims of naturalness, making it essential to understand the drivers of loyalty and the underlying brand love for such products. Responding to this need, the present study developed a conceptual model based on the Behavioral Reasoning Theory (BRT) to examine the antecedents of brand love. The model was tested using data collected through a cross-sectional survey. The findings suggest that health consciousness is positively associated with reasons for consuming natural products and attitude, which, in turn, are also positively associated with each other. At the same time, reasons for consuming natural products and attitude are positively associated with brand love toward natural products. Whereas, reasons against consuming natural products are negatively associated with attitude and have no association with either health consciousness or brand love. Furthermore, of the two proposed moderators (environmental concern and household size, only environmental concern had a moderation effect on the association of brand love with its antecedents. This study thus provides useful, practical, and managerial implications.     

Trust transfer from manufacturer to private label brand: The moderating role of grocery store format

Guided by the theory of trust transfer, the present study sheds new insights on the role of trust in manufacturer brand on trust in private label brand (PLB), perceived risk and willingness to buy (WTB). The moderating role of grocery store format between trust in manufacturer brand, trust in PLB and WTB is also examined. The empirical data were collected by means of a written survey instrument from consumers. The hypotheses were analyzed with maximum-likelihood estimation. The results revealed the positive influence of perceived manufacturer brand quality on trust in manufacturer brand and trust in PLB. The positive linkage between trust in manufacturer brand and trust in PLB is also supported. The negative influence of trust in manufacturer brand and trust in PLB on perceived risk was revealed and the positive impact of trust in manufacturer brand and trust in PLB on WTB was also confirmed. The findings provide support for the negative link between perceived risk and WTB. Additionally, perceived risk partially mediates the relationships between trust in manufacturer brand, trust in PLB and WTB. Furthermore, store format moderates the impact of trust in manufacturer brand and trust in PLB on WTB. Theoretical and managerial implications are presented based of the research findings.     

Managing conflict to improve the effectiveness of retail networks

Retailers are becoming involved with networks consisting of multiple firms in order to more effectively perform business activities such as supply chain management. This research develops and tests a framework outlining the effects of conflict in networks and how conflict management can mitigate and exacerbate these effects. A study of 81 simulated networks finds that inter-personal and task conflict have a negative effect on network member satisfaction and desire to be a member of the network. The use of a collaborative conflict management style has a positive effect on satisfaction and desire for continuity, but the effects of accommodative and confrontational styles depend on the level of inter-personal and task conflict present in the network.     

The management of retail design: demystifying the activity

Abstract The activity of design within retailing has received only partial consideration within the literature, and there has been a tendency to speculate upon the possible impact of design upon market positioning, retailer store image development and consumer behaviour at the expense of any understanding of the actual process of design development and implementation within retailing. The aim of this paper is to examine the process of design, and in particular the interrelationships that ought to exist between retailer (as client) and the designer in order to ensure that the values, benefits and opportunities afforded by design are fully realized within the organization. Integral to the effective management of design is the design brief, which is examined here within a retailing context. The paper concludes by examining the particular role that the store exterior has upon the development of a retailer's image and argues that further consideration needs to be given, not only to the positive outcomes of design investment in retailing, but also to the mechanisms by which it is achieved.     

The individualistic ethic and the design of organizations

The self-psychology theories used as motivational tools in work organizations during the past 20 years have collided with a confluence of societal changes. The individual has been enticed by more freedom in the work organization and an increasing array of life choices in a pluralistic society. At the same time, the economic environment has become hostile, threatening to limit the individual's choices. The confluence of expanding social choice and contracting economic resources has made it difficult for many individuals to make life choices that may lead to personal self-fulfillment. As a result, employees may most need and most appreciate order and predictability from their work organizations at the very time when more flexible work organization structures are most needed for the wave of new products and production technologies that need to be explored and developed. Hope for a resolution to this dilemma may be found in strengthening society's more durable social institutions, such as the family, organized religion, and the local community. If individuals can find the stability their lives need in these institutions, they may respond better to change, challenge, and freedom in the work organization.Charles Boyd is Associate Professor of Management at Southwest Missouri State University. His primary field of teaching and research is strategic management.A condensed version of this article was presented at the 1985 annual meeting of the Midwest Academy of Management at the University of Illinois.