New Product Introduction and Seasonality Effect in Food Products Retailing

ABSTRACT

This study aims to measure the effects of market demand and seasonality on new product introduction. Major factors contributing the variability of market demand and seasonality of new products have been discussed in reference to timing of introducing new products, variability of consumer preferences, retail sales, and product promotion. The study is based on 243 new products in selected self-service stores in Mexico, which belong to major food products sectors for the reference period 2002–2006. Results of the study reveal that market demand and seasonality factors are most important for the timing of new product introductions, as such conditions determine success of the new products in a given market.     

Mobile payment and online to offline retail business models

Mobile payments are services that use mobile devices to make payments. When digitalization moves across channel boundaries, online to offline channel retail will expand. Online to offline retailing will become the future retail owner stream and retail operators will move from cross-channel or multi-channel to omni-channel. This study investigates a market survey in Taiwan developing a data mining analytics including clustering analysis and association rules based on a snowflake schema database design. The role of mobile payment is determined in terms of new retail payment mechanism that promotes a better consumer purchase experience in an online to offline business environment.     

Numeric or weighted distribution? The effect of different channel performance metrics on market share

Abstract

Previous studies have found a convex relation between weighted measures of distribution and market share for consumer products in developed economies, while companies in emerging markets often use a non-weighted (numeric) distribution measure to manage their channel strategy. In contrast to the markets with high retail concentration, the numeric distribution could be best suited to a more fragmented retail market in which the percentage of physical distribution is important. We investigate the effects of expanding numeric versus expanding weighted distribution by studying stores in channels and regions characterized by structural differences in an emerging market. Our data come from retail audits in Brazil and include 91 soft drink manufacturers, 195 brands and 1,110 stock-keeping units. Our study highlights the importance of numeric distribution as a performance measure in this market. Additionally, we show that the effects of numeric and weighted distribution on market share vary by region and channel format.     

Retail formations: tracing the fluid forms of an online retailer

ABSTRACT

Change has often been said to characterise retailing, and research on retail change is extensive. However, though much of that research has focused on retail formats, it has not sufficiently addressed the fluid nature of retailing and how its formats emerge. This paper offers a more dynamic conceptualisation of retail format change by introducing the concept of retail formation. Taking a constructivist market studies approach and drawing upon an ethnographic study of a Swedish consumer electronics retailer, the paper shows how retail formations are continually being made in a dynamic process that can be initiated by various actors, does not necessarily follow a logical order, and commonly produces unexpected results. The concept of retail formation allows us to better understand the increasing fluidity of retailing enabling us to trace complex market processes, examine multiple actors simultaneously, and taking into account the socio-historical and socio-cultural dynamics involved in shaping retail markets.     

Antecedents of Taiwan Chinese Consumers’ Purchase Intentions Toward U.S.- and Japanese-Made Household Appliances

ABSTRACT

The purpose of this article is to understand the factors influencing Taiwan's Chinese consumers’ purchase intentions toward U.S. and Japanese household appliances. The authors attempt to develop and test a comprehensive model linking such purchase intentions to several constructs including Taiwan Chinese consumers’ openness to foreign cultures, consumer nationalism, product familiarity, traditional cultural values orientation, and product-country image. The result of analysis using structural equation modeling shows that consumer nationalism has a strong indirect effect on purchase intention via the product-country image construct. Taiwan Chinese consumers’ traditional cultural values orientation and openness to foreign cultures have direct effects on consumer nationalism and, hence, are important antecedents in explaining the purchase intentions toward foreign-made goods by Taiwan Chinese consumers. With the growing importance of the Chinese domestic market, this study provides international marketing managers with practical implications in important areas such as market segmentation, branding strategy, and market research and practices in the Chinese consumer market.     

Different Effects of Utilitarian and Hedonic Benefits of Retail Food Packaging on Perceived Product Quality and Purchase Intention

Since consumers primarily make in-store purchase decisions, firms use product packaging to attract potential consumers. Ever-increasing market competition in many food product industries has further fueled this phenomenon in firms. However, the question of how retail food packaging affects consumer processes has received very little attention. This study investigates the benefits of food packaging on consumer responses to hedonic products by comparing different benefits (i.e., utilitarian and hedonic) of food packaging to understand which one has more impact on consumers’ perceived quality and purchase intention. The results show that both utilitarian and hedonic benefits of retail food packaging are critical predictors of consumer evaluations but play different important roles in determining customers’ reactions. Utilitarian benefits of food packaging impact perceived quality more than hedonic benefits do. Compared to utilitarian benefits, hedonic benefits of retail food packaging have more impact on consumer purchase intention.     

The Quality Dimensions of Internet Retail Food Purchasing

ABSTRACT

This exploratory study examines relevant factors affecting consumers' evaluation of product and service quality in the context of Internet retail food purchasing. A total of 489 anecdotes, written by online consumers based on their own shopping experience, were collected and content analyzed. In turn, 18 quality dimensions and 58 sub-attributes were identified. The asymmetric effect of positive and negative attribute-level performances on consumer dis/satisfaction was discussed. The impact of two delivery strategies on consumers' perceived quality was also examined. Finally, managerial implications and recommendations were provided in order to pave the way for possible improvement of the quality of Internet retail food purchasing and, in turn, consumer satisfaction.     

Despite unethical retail store practices,consumers at the bottom of the pyramid continue to be loyal

Research in the area of retail store loyalty agrees that consumers reward retailers when they are satisfied with its products, services, and its image. Moreover, one would agree that if the retailer engages in unethical practices, the customer would quickly defect and even engage in word of mouth to influence others to defect. But this might not be the case universally. One consumer group that continues to be loyal to a retailer despite widespread unethical practices is the poor. A growing stream of research under the label of bottom of pyramid (BoP) and subsistence consumers has increasingly pointed out the market attractiveness of this segment to multinational companies. These poor consumers are individuals who earn approximately $2 per day. In this paper, we explain the nature of widespread unethical retail practices prevalent amongst the neighborhood retail stores (or kirana as they are referred to in India) that serve the BoP consumer, types of patronage behaviors, and the reasons ‘why’ these consumers continue to support the kirana store. The data for this paper comes from a qualitative study conducted with 58 urban poor consumers in India. This study carries significant implications for both domestic and multinational companies that market fast-moving consumer goods in the BoP market.     

Inclusive apparel shopping experiences for older consumers in China: product attributes and retail environment

ABSTRACT

The study explored apparel shopping experiences of older Chinese consumers, which integrate apparel product and retail environment aspects from an inclusive strategy perspective. Research questions include: What factors contribute to older Chinese consumers’ satisfaction and dissatisfaction? What are the major implications of older consumers’ (dis)satisfying shopping experience? What role can fashion practitioners play to make the retail environment and apparel products more accessible to the aging segment? Critical Incident techniques were used for data collection at a community park in Beijing. A total of 151 usable critical incidents from 84 older Chinese informants (55 years and older) were included in the data analysis. Content analysis with deductive qualitative data analysis method was used. Findings suggest that the older Chinese consumers assess their shopping experiences largely based on shopping outcome achieved (product purchased). This is in contrast to the movement toward more experiential focus in the developed markets in the recent decades. A significant number of tangible product attributes (including design/styling, comfortability/fit, and material) and intangible attributes (such as price and product assortment) contributed to the older Chinese informants’ satisfying or dissatisfying shopping experience. Aspects related to retail environment, including retail atmospherics and service quality were also important, but to a lesser extent than product attributes. This study represents an early attempt to explore how the tangible and intangible aspects of product attributes and retail environment contribute to the aging Chinese consumer’s shopping experience. Findings of the Chinese older consumers’ utilitarian, rather than experiential focus in their shopping experience evaluation provide insights on this market segment and valuable implications are developed.     

Retail Salespeople's Training and Its Impact on Attitudes Toward Handling Consumer Complaints

Abstract

This paper reports the results of a study of retail salespeople's training and its impact on attitudes toward consumer complaints. A sample of 59 retail salespeople from a variety of retail stores were surveyed via a self-administered questionnaire.

Significant differences were found between salespeople with more formal training and those who received informal/no training when they were hired into the sales positions. Findings indicate that proper training can equip salespeople to deal with customers who complain.     

The impact of consumer local engagement on local store patronage and customer satisfaction

Abstract

This paper examines the drivers of local grocery retail patronage. Drawing on institutional and social network theory literature, we develop a framework to investigate how consumers’ personal values and engagement with local communities affect their satisfaction and local store patronage. We test our model with survey data on 1504 Finnish consumers. Our results show that the relationship between customer local engagement and local retail patronage is indirect rather than direct, and it is mediated by the vitality of local services, social interaction, and consumer satisfaction.     

Taiwanese Retailing: Market Analysis and Retail Branding Model Application

ABSTRACT

The Taiwanese retail market is in a highly competitive stage. In the past three decades, the Taiwan retail grocery market has experienced many developments and changes, and recently, has started to realize the importance of developing its own retail brand. Although the idea of retail branding is still new in Taiwan, the major hypermarket players have tried to build up their own brand image and create new own label products which differ from other competitors. This paper explores retail branding in the Taiwan hypermarket industry through macro/micro environment analysis and applying retail branding models to the Taiwanese retail market. The macro/micro environment analysis is undertaken by the two STEPs model and the retail branding model is created from Dawson's three levels model combined with previous studies and theories. The approach in this study involves literature reviews and secondary research in the field of the Taiwanese retail market. The outcome of this study is to highlight key issues that deserve further research.     

Print and Online Catalogs

Abstract

A study is presented that examines the influence of print and online catalogs on consumer information processing. Petty and Cacioppo's (1979) elaboration likelihood model and research from the field of humancomputer interaction are used to hypothesize differences in consumer information processing when exposed to retail catalog information via print and online communication modes. Theory suggests, and results support, that a print catalog is more effective at stimulating cognitive elaboration and positive affect than a direct extension of the print catalog online. Implications for academics and practitioners are discussed.     

Measuring retail performance in an omni-channel world

Abstract

Driven by global advances in technology and changes in consumer buying behavior, brick-and-mortar retailers are being forced to become omni-channel retailers. This calls for new metrics for evaluating retail performance. We examine the challenges facing the retail industry, the metrics that traditional brick-and-mortar stores have used as well as the new metrics that retail industry experts are suggesting for online retailing. A conceptual framework for omni-channel retailers is suggested.     

Factors Determining Consumer Interest in Catalogs

ABSTRACT

This paper attempts to explain how consumer interest in catalogs is determined. A number of factors are identified that influence consumer interest in catalogs. These factors include a set of economic and social factors, and consumer perceived risk, demographics, and prior experience. The influence of these factors on consumer interest in catalogs is tested using data from Saudi Arabia, an emerging market. Results indicate that the economic and social factors influence consumer interest in catalogs. Also, consumer perceived risk, education, income and prior experience are related to consumer interest in catalogs, while gender and marital status are not.     

Slotting Allowances in China: Perspectives of a Large Manufacturer Versus a Large Retailer in the China Grocery Market

ABSTRACT

Slotting allowances and contractual marketing agreements pervade the retail environment in the United States. They represent a profit center for large retailers who exercise market power and represent a cost center for large manufacturers. Many manufacturers have alleged that they are “held captive” to procure prime retail space. Despite the influx of retailers and manufacturers based in the United States, the deployment of slotting allowances in China is less prevalent but does pervade the grocery sector. The purpose of this study is therefore to explore the attitudes of large Western manufacturers and retailers toward the issue of slotting allowances in the China grocery market through a qualitative study. In-depth interviews were conducted with key decision-makers from Coca-Cola (manufacturer) and Carrefour (retail hypermarket) to critically explore their attitudes toward slotting allowances. The interviews reveal principal differences grounded in cultural norms.     

Enabling and inhibiting factors in adoption of Electronic-Reverse auctions: A longitudinal case study in grocery retailing

Abstract

The paper aims to explore the factors that enable or inhibit the use of Electronic-Reverse Auctions (E-RAs) in the buying process of a large food retail organization, through a category management perspective. Using a case-study analysis based on in-depth interviews, examination of internal documents, simulation and direct observation of some E-RAs, we studied the experience of an Italian-based retailer conducting E-RAs during a two-year period. This approach enabled us to propose an E-RAs development model in retail buying groups, discussing enabling and inhibiting factors such as product, market, organizational and strategic factors. Propositions are developed to stimulate thought and provide guidance for future research.     

A Hierarchical Model of Values,Leadership, Job Satisfaction and Commitment

Abstract

Using a structural equation modeling technique, we empirically tested a hypothetical hierarchical model where personal values leadership styles job satisfaction organizational commitment. Survey data (N = 205) were collected from retail managers of national retail chain store companies. Our exploratory study found that personal values influenced retail managers' leadership styles, which in turn influenced their intrinsic and extrinsic job satisfaction. Job satisfaction ultimately influenced organizational commitment. Theoretical and managerial implications for human resources management are discussed.     

Stated Willingness-to-Pay for Organic Fruit and Pesticide Ban

Abstract

Income growth in highly industrialised countries has resulted in consumer choice of foodstuffs no longer being primarily influenced by basic factors such as price and organoleptic features. From this perspective, the present study sets out to evaluate how and to what extent consumer choice is influenced by the possible negative effects on health and environment caused by the consumption of fruit containing deposits of pesticides and chemical products.

The study describes the results of a survey which explores and estimates consumer willingness to pay in two forms: a yearly contribution for the abolition of the use of pesticides on fruit, and a premium price for organically grown apples guaranteed by a certified label. The same questionnaire was administered to two samples. The first was a conventional face-to-face survey of customers of large retail outlets located around Bologna (Italy); the second was an Internet sample. The discrete choice data were analysed by means of probit and tobit models to estimate the utility consumers attribute to organically grown fruit and to a pesticide ban. The research also addresses questions of validity and representativeness as a fundamental problem in web-based surveys.     

Product,Environmental, and Service Attributes That Influence Consumer Attitudes and Purchases at Wineries

Abstract

Direct sales of wine and winery souvenirs to winery visitors is important in a number of regions throughout the United States and around the world. The attributes that influence winery visitors' beliefs can have a significant impact upon wine purchases, repeat visits, positive word-of-mouth comments, and upon future purchases at restaurants and other retail outlets. A study of winery visitors found four underlying factors from a list of 17 attributes. Regression results indicated that several wine, environment, and service attributes have a significant impact upon consumer attitudes and purchases. Product and purchase involvement were also found to impact purchase behavior.