Isolating the geodemographic characterisation of retail format choice from the effects of spatial convenience

The authors analyze the relationship between the geodemographic profile of consumers and retail format choice while accounting for the effects of spatial convenience. The proposed analytic model assumes that format choice is an implicit portion of store choice, such that a geodemographic profile functions as a determinant of format choice, and spatial convenience is a determinant of store choice. The results show that some geodemographic dimensions capture preferences for certain store formats and thereby facilitate retailers’ selection of geographic markets. The results also indicate that obviating the effect of spatial convenience may lead to biased estimations.     

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.     

Store format choice and relationship quality in apparel retail: A study of young and early-middle aged shoppers in New Delhi region

Shopping format choice has been an interesting and important area of research in the academic literature from long time. However, research in this area is presently at a nascent stage in India. There are a very few studies which focus on store format choice in India which includes the works of Anand and Sinha (2009), Prasad and Aryasri (2008), Sinha and Banerjee (2004) and Tripathi and Sinha (2008). The present study compares three different retail formats (Discount stores, Exclusive stores and Multi-brand outlets) based on the shopper's perception of relationship quality (RQ) of these stores using multivariate techniques. For addressing, the objective of this study a sample of 313 shoppers is used. Results suggest that “conflict due to store” and “combined overall RQ due to the store and its employees” influence the store format choice. The RQ levels among the apparel store format are highly competitive.     

Exploring store format development and its influence on store image and store clientele – the case of IKEA’s development of an inner-city store format

Abstract

A changed technological landscape and radically changed consumer behavior are forcing retailers to rethink their business models, retail formats, and retail offerings. The global retailer IKEA is no exception in this development. Recently, the traditional IKEA format, which has been so successfully duplicated across the world over the years, has been complemented with other formats that are new and innovative for IKEA. Based on an empirical investigation of consumer perceptions of the store format development in Hamburg-Altona, Germany, the present study explores format development and its influence on store image and clientele, considering also the purpose of visiting IKEA and how this seems to have changed with the introduction of the new format. We also discuss the core aspects of the IKEA formats, and the fact that although some things have changed, others have stayed the same to preserve the IKEA image.     

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.     

The inter-store mobility of supermarket shoppers

The allegiance of a particular customer, and the distribution across customers of strength of affiliation to a store are important indicators of store health. It is therefore important to understand the extent and determinants of shopper mobility among competing retailers. While shoppers often patronize many stores, they typically have a primary affiliation to a “main store” that captures the majority of their purchases. We examine, in detail, the tendencies of shoppers to transition away from the current main store and adopt another in its place. That is, rather than study all types of store switching behavior, we focus on the decision to change primary allegiance. The model is established in a discrete time hazard framework and estimated as random-effects probit. Data from 548 households taking 88,945 shopping trips among five stores are used to calibrate the model.We find that state dependence is prevalent with nearly three quarters of the shoppers showing progressive attachment to their current main store. Interestingly, this finding is not simply driven by location (i.e., because shoppers are captive to a single store based on geographical distance). More likely, shoppers are unwilling to give up the benefits of store-specific knowledge of assortment, layout and prices. Second, the decision to transition from a current main store is not influenced by temporary price promotions on a common basket of items: Shoppers will cherry-pick, but this alone does not cause them to change primary allegiance. The majority of transitions occur across competing stores of the same price format, which suggests “format loyalty” is an important aspect of shopper behavior. After controlling for unobserved heterogeneity, we find little relationship between observable demographics and the transition probability. We do, however, find that shoppers who spend more per trip are less likely to change main stores, as are less frequent shoppers. Implications for retail management strategy are discussed.     

Interformat competition in the grocery retailing

In the last few years, we have seen significant changes in the Italian retail environment which suggest that the patterns of retailing competition are more complex than in the past. In order to expand their target market in a context of economic recession, retailers are implementing new strategies aimed to stimulate the switching between different store formats. As a result, store formats are getting similar and new "hybrid" formats are emerging.This paper investigates the interformat competition between grocery store formats in the Italian retail market in order to understand which formats are converging and which, otherwise, are maintaining their distinctiveness. Our findings show that the rivalry between store formats (interformat) is becoming more intense than the competition within store formats (intraformat). These results have significant implication on both retailers and trade marketing strategies.     

Growth factors of store brands in different store formats in Italy

Since the beginning of the consumer crisis, which in Italy can be traced back to the second half of 2008, there has been a significant development of store brands? market share which has reached close to 25% in some leader groups (for example Coop, Conad, Esselunga). The acceleration of the rate of penetration of store brands differs by category and store format. The main reason for this result is the different consumer purchase behavior. In this framework, this work aims at analyzing the elements that have determined the store brands success in the main store format (hypermarket, supermarket, convenience store), through analysis of single retail mix levers management. The factors that have mostly influenced the growth in store brands, in each store format, are investigated throughout a complete informative retail database. The aim of this study is to verify whether the management of the individual retail mix levers produces the same results in different store formats. Additional enhancement to the understanding of store brands management and further support to modern distribution management policies are also provided. A relevant finding is that the performance of store formats depends on the use of specific retail mix levers.     

The impact of retail store format on the satisfaction-loyalty link: An empirical investigation

Maintaining and improving customer loyalty is an important strategic goal for businesses as competition has intensified in almost all sectors of the economy. Retailers, in particular, feel the need to invest in customer loyalty more than ever before as channels and store format alternatives available for consumers to shop at have proliferated. However, current research in marketing provides little guidance to retail managers about developing and sustaining shopper loyalty across different store formats. Toward filling this gap, the present research examines the shopper satisfaction-loyalty link in two different store formats (supermarkets and hypermarkets). Using data from surveys of 505 Spanish shoppers at both types of retail formats, we examined how shoppers' attitudinal and behavioral loyalty develop differently. Our results reveal important differences and offer directions for the pursuit of different strategies by supermarkets and hypermarkets. The specific strategies, and the implications of this research for theory and practice are discussed.     

Influence of retail store environmental cues on consumer patronage behavior across different retail store formats: An empirical analysis of US Hispanic consumers

This study examined the influence of Hispanic consumers’ perceived importance of apparel retail store environmental cues and demographic characteristics (i.e., age and the number of years lived in the US) on their apparel store patronage behavior across various retail store formats. Three apparel retail store environmental cue dimensions were identified. Of the three dimensions, Customer Service appeared as a significant determinant in Hispanic consumers’ decision to shop at department stores, specialty stores, and mass merchant stores. Convenience was significantly, but negatively, related to the use of specialty stores. Physical Atmosphere appeared as significant determinants of Hispanic consumers’ use of Internet websites. The respondents’ shopping frequency at department stores, Internet websites, and catalogues was significantly different based on the respondents’ age and number of years lived in the US This study offers insights for apparel retailers in building effective retail store environments to attract Hispanic consumers.     

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.     

Large format retailing in the US: a consumer experience perspective

Proponents of relationship marketing seek to develop and maintain long-term ties to their customers in the hope of having a loyal customer base. In this paper we examined large format retailing from the perspective of consumers’ experiences in these stores. Focus group interviews were conducted in two major US metropolitan areas and one medium size market. After analyzing the focus group content, several themes emerged related to patronage of large format retailers. These included the accuracy of prices when products were scanned and loyalty to store personnel based on familiarity. Large format supercenters were especially chided for their bigness and potential negative impact on smaller retailers. Attending to the details of the food retail business (accurate pricing, product availability, continuity of personnel) are ways in which consumers’ experiences in retail stores might be improved. Numerous choices and a diverse array of retail formats are available to consumers in the US market. Managerial implications are discussed in the light of a changing retail landscape.     

Am I cheap? Testing the role of store personality and self-congruity in discount retailing

This study examines whether consumer perceptions of store personality (SP) differ according to the store's format (hard-discount versus soft-discount and value retailing). A consumer survey (n?=?306) is conducted in which respondents are asked to rate these retail formats on five SP dimensions and in terms of self-congruity (SC). The findings of both repeated measures ANOVA and hypothesis testing of proportion difference indicate that the three formats differ significantly in terms of all five SP dimensions. Moreover, consumers perceive a greater match between their self-concept and the value retailer's personality than the discounter's. A PLS model is estimated linking SP and SC to store loyalty and word-of-mouth intentions (WOM). The SP measurement model is only partially confirmed by the data. The effect of SC is found to dominate in explaining loyalty and WOM. These results provide valuable insights for optimising retail positioning strategies.     

Should retailers adjust their micro-marketing strategies to type of outlet? An application to location-based store space allocation in limited and full-service grocery stores

Many retailers today operate strategically different types of sites: ‘limited-service’ stores—that offer all core products/services but only a shallow assortment of non-core services—and ‘full-service’ sites with deep lines of both core and non-core services. An important question for these retailers is whether and how to adopt a micro-marketing strategy in each of these formats. In a micro-marketing strategy, retailers tailor their marketing mix to the characteristics of the local market in which each store outlet operates—a central issue being whether the allocation of store space across product categories should be location-specific. This paper (i) examines the conditions for such micro-marketing to be beneficial, and (ii) in particular—how these benefits depend on store format. It also (iii) indicates how the pattern of space adjustments to local conditions should differ between formats. The propositions are tested in a grocery retail setting, for a retail chain operating limited-service supermarkets and full-service hypermarkets. Our results suggest that micro-marketing is beneficial in both types of format. Yet, the appropriate way of localizing space allocation patterns is format-specific. While supermarkets should primarily adjust the space shares of food (core) categories, hypermarkets should primarily adapt the space shares of non-food (non-core) categories to local market conditions. The outcomes of the study have conceptual as well as managerial relevance and may prove useful for multi-format retailers in a wide range of settings.     

从国美电器门店转型看我国零售业态的变迁

本文通过对国内外零售业态变迁史进行了对比研究,分析了影响零售业态变迁的动因。在家电连锁店扩张过快,规模太大的背景下,国美电器转变了门店业务模式,通过实行品类管理和建设自有销售队伍,逐渐探索向自有营业模式转变。国美电器开启的"新活馆"将成为家电连锁店新的增长点,对促进国零售业态的创新有积极的意义和影响。     

Large format stores and the introduction of new regulatory controls in South Korea

Since 1996, when Korea's retail industry was liberalized, new store formats such as large discount stores, have grown, it was widely believed, at the expense of incumbent rivals such as traditional markets and small operators. This paper seeks to empirically test this proposition: an important underpinning to new regulatory control policies. Research involved a spatial analysis of traditional markets (1456), large discount stores (408), and super-supermarkets (SSMs or hypermarkets (729)) spread throughout the country, in order to examine the scale and scope of the influence of the new retail store formats. The research is supportive of the ‘Traditional Commercial Activity Protection Zones’, which protect small and medium-sized enterprises (SMEs). From the perspective of traditional markets, it may be necessary for the South Korean government to promote additional, more proactive, support policies for SMEs.     

Spatial competition with endogenous location choices: An application to discount retailing

This paper examines the importance of geographical differentiation in store location decisions of firms in the retail discount industry. Using a novel data set that includes the store locations and accompanying market conditions for all stores belonging to the Wal-Mart, Kmart, and Target chains, we study the factors that influence the entry and location decisions of these firms. The model involves an incomplete information game between the three players where each firm has private information about its own profitability. A key feature of our modeling approach is that it permits asymmetries across firms in the impact of exogenous market characteristics and competitive interaction effects. Variations in the exogenous firm specific characteristics, such as the distances from the market to firms’ headquarters and the nearest distribution centers, serve as exclusion restrictions and provide the source for model identification. Parameter estimates of the payoff functions are used to predict the equilibrium market structure under a variety of market conditions that provide insights into the competitive landscape of the industry. Results show that all firms exert a strong negative impact on competitors when they are in close proximity, but the effect decreases with distance to rivals suggesting strong returns to spatial differentiation in this industry. Target stores fare well under competition except when these competitors are in close proximity. Wal-Mart’s supercenter format is found to be the most formidable player as it substantially impacts competitors even at a large distance. We also find significant asymmetries across players in their response to market conditions and competition interactions.

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.     

Moderating effect of customer's retail format perception on customer satisfaction formation: An empirical study of mini-supermarkets in an urban retail market setting

Customer perceptions of retail formats have become ambiguous with new value-added features of traditional retail formats. Hence, this paper proposes a framework for explaining retail patronage formation under the condition that customers perceive the ambiguity of retail format boundaries. The moderating effect of customers' retail format perceptions on customer satisfaction is examined using data from Japanese mini-supermarket customers. Results indicate that customers' perceptions of retail formats partially influence customer satisfaction. Theoretically, this implies that considering retail format as a concept that customers construct a posteriori may be necessary and practically indicates that retail practitioners should manage customers’ retail format perception.     

The Linkage of Trades in Terms of Wholesale Business Formats in Japanese Distribution Systems

Abstract

Japanese distribution and particularly wholesaling are often suggested as having complex channel structures. This can provide difficulties for international retailers who wish to develop direct links with manufacturers and agricultural producers. Wholesalers, in this system, attempt to synchronize their buying and selling functions that gives rise to different types of wholesale business format. Unlike retail formats, wholesale formats seldom have relationships with the final consumer. Results of a survey of wholesalers are presented. The results show that the buying and selling trade relationships are driven by different factors depending on the business format of the wholesaler.