The impact of selected store image dimensions on retailer equity: Evidence from 10 Chinese hypermarkets

Building retailer equity increases revenue and profitability by insulating retailers from competitors. Store image is the basis of retailer equity, but extant literature offers little insight into the empirical research which takes store image dimensions as antecedents of retailer equity. This paper establishes a theoretical and empirical basis that shows the impact of selected store image dimensions on retailer equity. The authors propose a conceptual framework in which store image dimensions are related to three dimensions of retailer equity, i.e., retailer awareness, retailer associations, retailer perceived quality. These dimensions are then related to retailer loyalty. The empirical tests using a structural equation model support the research hypotheses. The results indicate the positive effect of convenience, perceived price, physical facilities, employee service, and institutional factors on retailer equity dimensions as antecedents of retailer equity.     

The impact of weather on consumer behavior and retail performance: Evidence from a convenience store chain in China

Despite extensive use of weather data to adjust replenishment and inventory strategies in the retail industry, these companies do clearly know the effect of weather on consumer behavior and retail performance. How does weather affect consumers' purchasing behavior and thus retail performance? We study empirically these questions by analyzing more than 6 million transactions made by more than 1.62 million unique consumers at 146 convenience stores in a convenience store chain in China. We choose sun, rain, temperature, and air quality index as the main weather variables. We use the average number of items per order and the average price of each item in each order as indicators of consumer behavior, and use store daily sales as an indicator of retail performance. We found that under rainy weather, people will buy more products with higher item prices in one order. When temperature rises, people will buy fewer products with a lower item price in one order. In addition, sunny weather and rainy weather have a positive impact on daily sales than cloudy weather. Air quality has a negative impact on daily sales, while temperature has a positive impact on sales. Finally, we study the impact of weather on different product categories. We find that the results depend on the product category characteristics.     

Shopping orientation segments: exploring differences in store patronage and attitudes toward retail store environments among female apparel consumers

The purpose of this study was to identify shopping orientation segments for US female consumers. The sample included 151 women, aged 18 years and over. This research examined differences in the segments relative to store patronage preferences (i.e. department, discount, specialty), attitude toward the environment of the store selected as first choice when shopping for a specific apparel item (i.e. a dress), and demographic characteristics. Cluster analysis revealed that four shopping segments described the female consumers. The segments were named Decisive Apparel Shopper, Confident Apparel Shopper, Highly Involved Apparel Shopper, and Extremely Involved Apparel Shopper, based on several shopping factors. Differences were found among the shopping orientation segments for store of first choice, attitude and household income. Implications and future research directions are discussed.     

Engaging consumers on new integrated multichannel retail settings: Challenges for retailers

The rapid diffusion of more channels for shopping posits new challenges for retailers, who need to compete in a complex environment for avoiding the problem of consumer cross-channel free riding. To discourage this behaviour, we propose a new environment where one retailer simultaneously handles more channels. The emerging integrated environment would engage more consumers if compared to the single handled channel, which in turn would avoid switching behaviours towards competitors' channels. Our empirical research, based on the stimulus–organism–response paradigm, involves a sample of 237 consumers who were asked to explore the new retail settings simulated in a university lab. The results lead us to suggest the effective combination of multiple channels managed by one retailer as the new challenge for scholars and practitioners. We note that our participants showed positive emotional reactions towards the environment, which lead them to choose this environment for purchases.     

Store brands and retail differentiation: the influence of store image and store brand attitude on store own brand perceptions

Store's own brands can provide important opportunities for retail differentiation if they are considered by consumers to be uniquely associated with store image. A survey of shoppers measured attitudes toward individual stores’ images and store brand perceptions, as well as general attitudes toward store brands. A regression analysis demonstrates a positive relationship between consumers’ perceptions of individual store own brands and their associated store's image dimensions and attitudes toward store brands in general.     

Influence of usage situations and consumer shopping orientations on the importance of the retail store environment

This paper is based on a mainly qualitative study of 22 recently married or cohabiting Scottish couples who have set up home together. The research focuses on their food shopping habits in this period of transition as they adjust to living together. Despite the increased involvement of men the findings suggest that much of the responsibility for food shopping still fell on the women in the study. Control over what was bought raised some interesting questions about the concept of the woman as 'gatekeeper' and primary target for food marketers.     

Actual and perceived consumer vigilance in the retail grocery industry

Economic theory suggests that price competition is in part driven by actively searching buyers. An exploratory study in a major midwestern grocery market revealed that executives responsible for pricing decisions overestimate the size of the price-driven shopping segment. The reasons behind this perception and its impact on pricing decisions are examined.     

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.     

How category characteristics affect the number of store brands offered by the retailer: a model and empirical analysis

Our research examines why retailers offer, not one, but multiple store brands in some product categories. More specifically, we are interested in how certain product category characteristics affect the number of store brands. We model a product category consisting of two incumbent national brands that may differ in strength. The retailer may introduce one or two store brands depending on which maximizes category profits. Our analysis suggests that the retailer is likely to carry two store brands in categories where (i) the national brands are similar in strength; and (ii) the price sensitivity between the national brands is low. Interestingly, the conditions that support the introduction of more than one store brand are quite different than the conditions that would facilitate the introduction of additional national brands. We provide empirical evidence that support our model-based predictions.     

Teenagers’ use of alternative shopping channels: A consumer socialization perspective

The consumer socialization (CS) perspective is applied to explore factors that influence a developing consumers’ use of different shopping channels—mall and Internet. The effects of channel involvement, access to funds, access to the channel, and socialization agent communication on adolescent shopping and intentions are examined using a high school student sample. Results indicate that involvement with a channel has a major influence on agent communication, time and money spent, and future intentions to shop in that channel. Agent communication was also found to influence shopping behaviors and intentions. Differences between channels are noted. Additional findings, implications, limitations, and future research directions are also presented.     

Consumer perceptions of refund depth and competitive scope in price-matching guarantees: effects on store patronage

The study investigates the effect of two characteristics of price-matching guarantees—the depth of refund offer and the scope of competitors eligible for price matching—on consumer perceptions of price-matching guarantee believability and value and consumer intentions to patronize the retailer. The results show that large refund offers built consumer patronage intentions by enhancing perceptions of the value of the price-matching guarantee, while simultaneously exerting a negative impact on patronage by reducing believability of the price-matching promise. The competitive scope also affected the patronage intentions by influencing the perceived value of the price-matching policy.     

An empirical test of the Theory of Sales: Do household storage constraints affect consumer and store behavior?

We revisit and test Salop and Stiglitz (1982) Theory of Sales. Equilibrium comparative static predictions are that greater consumer storage constraints lead to: (1) higher average prices, (2) fewer promotions, and (3) shallower promotions. In equilibrium, price dispersion is nonlinear in storage constraints, first increasing then decreasing. Empirical estimates of storage constraints are developed for approximately 1,000 households using the American Housing Survey (1989), United States Census (1990), and Stanford Market Basket Database (1991–1993). We find consumers with greater storage constraints shop more often and purchase smaller quantities per visit; moreover, the comparative static predictions are supported and evidence consistent with the equilibrium dispersion prediction is observed. Estimated quantitative effects are economically important. JEL Classification D12 · D40 · M3     

'One brand,three ways to shop': situational variables and multichannel consumer behaviour

To counter the growth in online retailing, high street retailers are increasingly adopting multichannel distribution strategies, seeking to target individual consumers via both physical and electronic channels as multiple routes to purchase. In order to develop successful marketing strategies within this environment, however, an understanding of consumer selection between available purchase channels is clearly needed. This paper explores the issue of shopping mode selection from an environmental psychology perspective, applying a traditional Belkian analysis of situational variables in a longitudinal study of consumer channel selection decisions. Preliminary findings from an empirical study of consumers of a leading UK fashion retailer are reported which reveal significant differences in the prevalence of different Belkian variables between shopping modes, suggesting a major role for situational influence during the channel selection process.     

Utterly fresh perspectives on consumer research and advertising: Introducing the special issue from the 2013 La Londe conference

This article provides an overview of the papers from the 40th La Londe Marketing Communications and Consumer Behavior Conference that were selected for this special issue of the Journal of Business Research. The La Londe conference is a biennial event that attracts top researchers from across the world. A small and selective conference, its intimacy combined with high-quality presentations serves as an incubator for new ideas and fresh perspectives on consumer research, and does so through an international lens that is reflected in the diversity of countries represented on the conference program, the co-chairs of the conference, and the La Londe Conference Scientific Committee.     

Regional and Categorical Patterns in Consumer Behavior: Revealing Trends

We offer a method of analysis that allows for an “unbundling” of the data to a disaggregate household level, and then “rebundling” it in a manner designed to identify patterns and relationships which are otherwise masked. Applying the method in the context of ‘healthy’ products and using census block group level data, we study consumption over several categories in two locations. The analyses show that studies involving geographically dispersed data must test for, and take into account when required, conceptually sound spatial effects in order to accurately assess impact. We also show that while both location and the product category have a significant impact on the proportion of healthy products purchased, the degree to which consumers choose healthier alternatives is a function of the category as well as the location. Finally, we provide preliminary evidence from survey data that supports the variations we find, and further explores attitudinal differences as well. There are rich implications for retailers in that new products introduced to benefit from popular trends (such as ‘healthy’ alternatives) may not succeed for all categories or locations. Retailers would benefit from understanding the spatial, demographic and attitudinal effects that play into consumption behavior, and such effects can be better understood when studying choice at the category and region level. Finally, public policies aimed at promoting healthier purchasing habits may have greater impact if special attention is given to specific categories and regions.     

Willingness to pay for organic products: Differences between virtue and vice foods

Faced with growing environmental problems, food safety issues, and increasing obesity rates, many consumers desire healthier, less processed natural foods that are less harmful to the environment. Yet organic foods only partially benefit from this market environment, and their market share remains quite low despite high growth rates. The usual explanation for this discrepancy is that consumers are not willing to pay the price premium prompted by an organic claim. In this paper, we explore the reasons behind consumers' (un)willingness to pay for organic food and investigate whether it differs between virtue and vice food categories. The results indicate that in vice food categories, organic claims are associated with lower quality, which seems to be only partly compensated by higher prosocial benefits. The lower-quality perceptions translate into a decreased consumer willingness to pay (WTP). We supplement the empirical results with data on organic purchases in the Dutch food market. These data show that market shares of organic food are indeed lower for vice categories of organic food.     

Convergence and divergence in consumer behavior: implications for international retailing

Converging technology and disappearing income differences across countries will not lead to homogenization of consumer behavior. Rather, consumer behavior will become more heterogeneous because of cultural differences. As consumer incomes converge across countries, the manifestation of value differences will become stronger. This phenomenon makes it increasingly important to understand values of national cultures and their impact on consumer behavior. Retailing strategies for one country cannot be extended to other countries without adaptation. Hofstede’s model of national culture is applied to understand differences in consumer behavior across countries. Examples are provided of consumption differences, their relationships with culture discussed, and selected implications for international retailing management detailed.     

Creation of consumer loyalty and trust in the retailer through store brands: The moderating effect of choice of store brand name

Within the current economic context, store brands play an important role in differentiation strategies based on assortment and positioning in terms of distributor prices. To begin with, this study identifies three determining aspects of retail loyalty and trust: satisfaction with price levels, the perceived image of the assortment and loyalty to the store brands (SB). Secondly, this study proposes a theoretical relational model among the aforementioned aspects. Finally, this study analyzes the moderating role that the strategy of choosing SB name (umbrella brand label vs. brands different from the label brand) plays in the relationship between loyalty to SB and loyalty to and trust in the retailer. By including this moderating variable, we seek to contribute to current academic research and to provide insights into the importance that SB strategy (label vs. own name) has for the effect of loyalty to SB on the relative results of the retail company. Our research results show that making the umbrella SB name the same as the label brand name increases the positive effect of customer loyalty to SB on loyalty to the retailer, but not the effect of trust on this loyalty compared to chains that use SB names different from those of the label. These results have important implications for management.     

The role and management of product innovation in retailer assortments: evidence from the Italian FMCG market

This paper relocates the recent wave of internationalization in retailing in a much longer historical context. Utilizing a newly compiled database of all foreign entrants into British retailing since 1850, the paper reviews trends in overall entry patterns before considering the entry patterns in different retail trades. New empirical data on the branch counts of foreign entrants from 1850-1991 are presented. These data clearly indicate that what was new about the 1980s was not their number per se but the concentration of large numbers of relatively small entrants in clothes retailing. This analysis of the very long term developments of international retailing in Britain therefore concludes that any account of the upsurge in foreign entrants into British retailing in the 1980s needs to take the concurrent developments of high street demand for clothing more fully into account.