The Determinants of Retail Loyalty of Indian Consumers

This study investigated the influence of expectations and evaluation of functional and social attributes on Indian consumers' food retail loyalty. Structural equation modeling results indicate that social self-congruity is an important determinant of food store patronage in India. Food assortment and services are critical drivers of supermarket loyalty, whereas relative advantage is the only determinant of store loyalty among traditional food retail customers. Positive store experiences lead to increased store commitment and perception of greater relative advantage for traditional retail shoppers, whereas positive store experiences increase switching costs for supermarket customers. Implications for food market entry into India are presented.     

Quantifying barriers impeding the diffusion of supermarkets in China: The role of shopping habits

The present study contributes to the literature on supermarket diffusion by incorporating shopping habit factors, beyond socioeconomic factors and store characteristic factors, into a framework for predicting consumers' choice to shop in traditional versus modern retail formats. Further, this study aims to estimate the relative importance of these variables compared to other factors. Our results show that socioeconomic factors have minimal impact on consumer choice. Shopping habit factors have as great or even larger impact as market-relevant and product-relevant attributes, especially for fresh-food and cooked-food shopping.     

Supermarkets in China: the case of Shanghai

Supermarkets have established a visible presence in Shanghai with some 1,000 stores and an estimated 5 per cent of market share. Local chains dominate the sector but well-known international retailers are very active. Studies indicate that a large proportion of consumers regularly shop in supermarkets but they use them 'selectively', mostly for packaged and processed foods, and continue to purchase fresh food in traditional outlets. The author uses a variety of data types and a number of research methods to analyse supermarkets' penetration into Shanghai. A background discussion of the food retail system in Shanghai highlights the traditional formats, the local and foreign supermarket chains, and the independent supermarkets. The data from a consumer shopping behaviour study is then used to assess supermarkets' penetration. Supermarkets' fast penetration into Shanghai is surprising given the findings of earlier studies, which identified the existence of serious limitations on the format's penetration into less developed countries (LDCs). Consequently, the focus in the second part of the paper is on explaining the reasons for the success of supermarkets. The impact of the factors identified in the earlier studies as constraining supermarkets' advance were evaluated and it was found that in Shanghai three of these factors (consumers, traditional retailers and government) did not cause serious problems for supermarkets. Only the supply-side conditions negatively affected their operations. The Shanghai example highlights the need to update our thinking regarding the LDCs' food retail modernization process in a number of directions. First local supermarket chains, not foreign ones, drive the process. Second, supply-side factors, not the demand-side ones that were emphasized in earlier studies, pose the major difficulties. Third, this analysis affirms the importance of the 'selective' adoption phenomenon where LDC consumers who regularly shop in supermarkets continue to purchase fresh food in traditional outlets. The implications of this analysis for food retail modernization theory and for practice are discussed and the prospects for further development of the supermarket sector in Shanghai are assessed.     

Intermediate Supermarkets in China

Abstract

Intermediate supermarket formats share characteristics of traditional food stores and of the modern supermarket. Because they represent steps on the evolutionary path towards the “complete” supermarket they offer an alternative to the dominant food retail modernization route involving the transplantation of the supermarket model.

The paper reports the findings of a study of these intermediate formats in Shanghai. We discuss the origins, structure and operation of these stores and evaluate their contribution to the food retail modernization process. Surprisingly, few of the operators of these stores were traditional food retailers. Most were state-owned companies and private entrepreneurs from outside the retail sector.

Lack of managerial and financial resources and inexperience led many to open these formats rather than the “complete” supermarket. The weakness of this subsector means that the main vehicle for food retail modernization in Shanghai will continue to be the supermarket chains. But because of limitations on the chain's expansion, they may enter into franchising arrangements with the best among these intermediate supermarkets. Finally, it is suggested that intermediate formats are likely to play a more important role in secondary cities, in towns and in rural areas in China.     

Traditional bazaar or supermarkets: A probit analysis of affluent consumer perceptions in Hanoi

Abstract

This paper sheds light on the preferences and behaviour of Vietnamese consumers in an emerging market economy. We analysed survey data of affluent consumers in Hanoi by using a binary choice Probit model for traditional bazaars versus supermarkets. The purpose of the analysis was to measure the factors which influence decision-making by consumers when selecting particular retail outlets for shopping. Our results show that freshness, price and convenience are important in shaping the choice by consumers for traditional outlets for fresh food, while price played a key role in selecting shopping outlets for processed food and drinks and non-food products. The results provide a basis for understanding the strengths and weaknesses of the old and the new retail outlet formats.     

Antecedents of supermarket formats’ adoption and usage: A study in the context of non-western customers

This research deals with the process of food retailing modernization—the process through which supermarket formats (supermarkets and hypermarkets) diffuse, replace traditional retail formats and gain market share. The study first divides the process into three components (diffusion, adoption, and usage of supermarket formats), then, through two independent studies, we apply an empirical framework that identifies factors motivating format adoption and usage in the context of non-Western countries. The empirical results, utilizing two surveys involving 961 respondents, indicate strong evidence for most of the hypotheses drawn from the theoretical framework. Specifically, among other findings, the analyses reveal that consumer economic abilities and format outputs comprise key factors affecting format adoption. However, the impacts of these factors vary among the populations in the study. The findings also point to the significant effects of three variable sets on the extent of supermarket use among the adopting consumers regardless of their economic status. These variables include format outputs, religious variables and ethnic-cultural attributes related to food consumption patterns of Muslim-Arab consumers. The article closes with managerial implications and future research.     

Barriers to the advancement of modern food retail formats: theory and measurement

The recent expansion of global food retailers into emerging economies has made the study of food retail modernization especially relevant at this time. We present a framework to analyze limitations to market share growth of retail formats based on diffusion across consumer segments and by product category. We then propose a measurement approach, based on consumer surveys, that quantifies the impact of these processes on supermarket market share. Food retail modernization is then examined in Hong Kong by this approach for two points in time. In a 1995 diagnostic study, we find that geographic and economic segment diffusion of supermarkets is complete, but that product category-dependent diffusion (specifically perishables) is not. The latter, thereby, becomes the major restriction on supermarket share gain. In 1999, a second study measures the impact of the introduction of superstores, a large modern format, on the perishable restriction to modern format share growth. Consumers perceived superstore perishables to be superior to supermarkets’, but these views had little impact on the ability of modern format to wrest additional share from traditional markets. We discuss diagnostic and monitoring applications, and extensions of the approach to other retail contexts.     

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.     

The Showrooming Phenomenon: It's More than Just About Price

This paper examines the factors that influence competitive showrooming, whereby consumers visit an offline retail store to gather information but make their purchase online at a competing retailer. We survey 556 respondents to study how the benefits and costs of showrooming influence the consumer's decision to showroom. Not surprisingly, we find that expected average price savings from showrooming are positively associated with showrooming. In addition, however, the perceived dispersion in online prices is also positively related to showrooming. Moreover, we find that non-price factors play a key role in consumers' showrooming decisions: perceived gains in the quality of the product purchased when showrooming (measured as the fit with a consumer's need) and waiting time for service in the brick-and-mortar store are positively associated with showrooming. Online search costs are negatively related to showrooming. Time pressure that consumers face when shopping is negatively associated with their propensity to showroom. We discuss implications for researchers and retail managers. For example, managers of offline retail stores can curtail showrooming by increasing the number of sales personnel available in-store instead of providing currently employed personnel with more training. To encourage showrooming, managers of online retailers should make it easier for the customer to search online.     

Factors Influencing Consumer Purchasing Decision Toward Malang Meatballs At East Java,Indonesia

The study examined factors influencing consumers' purchasing behaviour in relation to Malang meatballs as a representative ethnic food in East Java, Indonesia. Multistage area sampling was used to randomly select 400 households from the Malang area (200 urban and 200 rural) as consumer respondents. Respondents were interviewed using a structured questionnaire by the researcher and enumerators. Logistic regression analysis was used to analyse consumers' purchasing behaviour toward Malang meatballs. This study can contribute to a better understanding of consumers' preferences toward Malang meatballs, an animal protein-based food, that has a unique taste. Consumers preferred Malang meatballs compared to street foods (i.e., “soto,” “tahu campur,” and fried noodles). Younger consumers concerned about freshness and a “halal food” may select Malang meatballs. The availability of Malang meatballs can increase consumers' purchasing action toward this product. Also, surrounding cold air temperature influenced consumers in selecting this food.     

Self-scanning technologies in retail: Determinants of adoption

Self-scanning represents a form of customer participation in service creation, a form of self-service and a technology-based service delivery device. This study, conducted within the large-scale retail sector, pursues a dual aim: firstly, to assess the link between satisfaction with self-scanning and some of its possible antecedents; secondly we intend to determine whether satisfaction with this service has any impact on consumers' overall opinion of the supermarket and their intention to patronise the store with greater frequency. The data show that both the sense of control and hedonic component have a positive impact on satisfaction with self-scanning and further bring to light that service satisfaction is an antecedent both of customers' opinion of the supermarket and their intention to patronise the store more frequently.     

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.     

国内连锁超市的核心竞争力分析

连锁超市核心竞争力是指连锁超市所拥有的超越其他零售业态或其他企业能使自己保持长期竞争优势并获得稳定发展的能力。在后WTO时代,中国的连锁超市若要在国内同行的竞争和外资洋超市的冲击中求得生存和发展,必须尽快提升自己的核心竞争力。核心竞争力是连锁超市生存和发展的基础,为提高核心竞争能力,连锁超市必须对影响其核心竞争力的因素进行分析,在分析的基础上做出正确的决策。本文分析了连锁超市在中国的发展现状,核心竞争力的影响因素,以及在目前环境下该如何提升国内超市的核心竞争力。     

Privacy threats with retail technologies: A consumer perspective

This paper focuses on new retail technologies that acquire information from consumers, advancing that such devices represent privacy management concerns. Specifically, we propose that privacy perceptions in a retail environment are driven by retailer- and technology-related factors as well as consumers' personality traits. By running a moderated serial mediation analysis, we address the technologies' fairness and hedonism as antecedents of consumer privacy perceptions, technology acceptance and perceived value, and account for consumers' trust in the retailer. We find that privacy perceptions are directly affected by distributive fairness, while the technology's hedonism affects acceptance. Further, the effects extend to patronage intention and word-of-mouth.     

Environmental and Societal Positioning as Sources of Competitive Advantage in an Agricultural Firm

This research seeks to ascertain whether an agricultural firm's social and environmental positioning affects consumers' perceptions of the attributes of its products. Results showed that companies that are perceived to be more socially and environmentally conscious received better ratings for their produce in terms of quality and freshness. In addition, consumers reported that they would be willing to pay more for food grown by socially and environmentally conscious firms.     

The Structure of São Paulo Street Markets: Evolving Patterns of Retail Institutions

Development in emerging economies leads to a cohabitation of traditional and modern forms of retailing. This diversity allows for centuries' old consumer behavior patterns to continue along with new options. The street markets or Feira Livres¹ of São Paulo, Brazil demonstrate how consumption patterns are culturally determined. Participant observation, both in supermarkets and at feiras, and interviews with consumers and vendors are used to investigate consumer shopping patterns, along with evolving patterns of retail structure. We find that informal markets, such as the feira, are able to coexist with modern, Western-style retail institutions, partly because of ingrained food preparation habits and deep-seated consumer impressions about superior qualities offered by feiras (e.g., the perceived freshness of the produce). Our findings support the Natural Selection Theory of retail development in that we find evidence of adaptation. Specifically, the supermarkets in Brazil have evolved to include departments that imitate some of the popular characteristics of the feiras.     

The key role of intermediaries in Thailand's fresh food distribution system

New overseas retail formats have been entering emerging markets since the late 1990s. Accordingly, research on the advance of transnational retailers into emerging markets has recently flourished, and Thailand, one of the most popular host countries for transnational retailers, has often been examined as a case study. Many of these studies clarify the retail internationalization process and conclude that the new formats are driving the host countries' traditional distribution system toward a fundamental change. Although these studies consider the host countries' circumstances, they do not necessarily pay sufficient attention to specific characteristics of those host countries. In case studies of Thailand, the specific roles of intermediaries throughout the entire retail and distribution system are commonly overlooked. This paper argues that intermediaries continue to play an important role in Thailand's distribution systems, especially in the system of fresh vegetable distribution. This study first explains why earlier studies often attached less importance to the examination of intermediate distribution systems, despite the necessity of considering the roles of intermediaries for a deeper understanding of the impact of new retail formats on the host countries' distribution system as a whole. After discussing the key roles of intermediaries in Thailand's vegetable distribution system, this paper concludes that because modern retailers' involvement, particularly that of transnational retailers, at the agricultural production stage is still limited in Thailand, they often rely on intermediate distributors, such as local assembling wholesalers, coordinator-type intermediaries, and wholesale markets, for the intermediate distribution process.     

Key influencing factors of green vegetable consumption in Beijing,China

Green-certified vegetables are nutritious, attractive to the senses, and in line with the principles of sustainable development. The objectives of this study are to reveal the mechanism of green-certified vegetable consumption; that is, to explore the key influencing factors behind consumers' purchase intentions, purchase behavior, and willingness to pay for green-certified vegetables. Based on the Theory of Multi-attribute Attitudes and the Theory of Planned Behavior, a research framework of the consumption mechanism oriented to consumers' preferences regarding green-certified vegetable quality was established. By collecting 520 questionnaires from Beijing, China, the model was confirmed by the ordered logistic regression and interval linear regression method. The results showed that consumers have heterogeneous quality preferences, and their purchase intentions and purchase behavior levels are relatively high, with an average willingness to pay (WTP) of 138.58%. The key influencing factors driving consumers' purchase intentions, purchase behavior, and WTP include protein content belief, mineral content belief, vitamin content belief, organic vegetable safety belief, freshness belief, and taste belief. In addition, color belief and packaging quality belief significantly influenced consumers' WTP, while origin reputation belief and brand reputation belief significantly influenced consumers' purchase intention and purchase behavior. The findings of this study can guide the supply side of green-certified vegetables to improve product quality according to consumer demand, so as to promote the sustainable development of green-certified vegetables.     

零售业态均衡与创新的要素分析——基于零售业态价格梯度模型的研究

文章提出了一个业态价格梯度模型,该模型将价格梯度与业态竞争分布相联系,通过引入"消费者偏好"概念,较好地刻画了零售业态中服务、价格、成本三者之间关系,在此基础上验证并发展了"技术边界线"理论,提出业态取得竞争优势的关键因素是技术进步、满足消费者偏好以及管理创新带来的成本下降,我国家电零售业态历史发展变化情况也在一定程度上验证了模型的有效性。模型为今后同类研究提供量化分析工具的同时,也为进一步完善业态进化理论提供了新的研究视角。     

Fairness perceptions of retail price increases by foreign and domestic brands: The roles of ethnocentric beliefs,profit stickiness,and contextual information

Although consumers do not usually take kindly to price increases, their perceptions of fairness of price increases are contingent on relevant factors. This study investigates consumers' perceptions of the fairness of retail price increase by a domestic versus a foreign brand, as moderated by consumers' ethnocentricity, bias toward inferring a profit motive from a price increase (i.e., “profit stickiness”), and relevant contextual information. Over the course of two sets of experiments, the authors find that ethnocentricity does not necessarily lead to the intuitively expected favorable (unfavorable) bias toward (against) a domestic (foreign) brand's decision to raise prices, subject to profit stickiness and contextual information. These findings have implications for theory, practice, and further research.