Satisfaction and image as mediators of store loyalty drivers in grocery retailing

The purpose of this article is to analyze the role of satisfaction and image as mediators of four store loyalty drivers (store location, service quality, assortment, and price) within a comprehensive cause–effect model. The analysis employs a more holistic view of the store loyalty model than is common in a retailing context. It is based on the consistent macro-oriented National Customer Satisfaction Index (NCSI) approach. This makes it an important cross-over study, both enabling a comparison of results across industries and providing a more solid base for model validation. The data source is a survey among customers of a chain-based Norwegian grocery store which is analyzed by partial least square (PLS) and covariance-based structural equation (LISREL) estimation. A change in customer's perception of store image, where image is measured as a reflective ‘overall’ latent variable, has the expected direct significant effect on loyalty. But in addition, image will also serve as an important mediator between satisfaction and loyalty, and this is a rather uncommon result in a retailing context. Another significant finding is that a customer's perception of store assortment only influences perception of image and ultimately loyalty indirectly via satisfaction, whereas price evaluation and service quality works directly both through image building and satisfaction creation. Satisfaction creation seems to be more important for store loyalty than image building.     

Consumer service and loyalty in Spanish grocery store retailing: an empirical study

The purpose of this paper is to investigate the effects of consumer service on loyalty in retail establishments. Based on a theoretical discussion regarding the relationship between waiting time, product quality, store atmosphere and loyalty, an empirical research was conducted to test the proposed relationships. Multiple‐item indicators from previous studies were used to measure the constructs. Results from the study provide empirical support, suggesting that consumer service through three dimensions influences loyalty. Research results suggest that consumer service in retail establishments can be viewed as a threshold factor in order to maintain satisfied and loyal customers. Additionally, managers should consider that loyalty depends on waiting time, product quality and store atmosphere. The present study provides useful information on the relationship between consumer service and loyalty in retailing.     

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.     

Brand personality appeal in retailing: Comparing fashion- and grocery retailing

In a mature retail market, branding can offer retailers opportunities for setting themselves apart. This study examines the construct ‘brand personality appeal’ (BPA; Freling et al., 2011) in retailing. Two consumer surveys are administered, on fashion retailing (n = 104) and grocery retailing (n = 101), focusing on (1) store personality, (2) BPA, and (3) retailer brand equity. A SmartPLS estimation shows that ‘enthusiasm’ is a personality trait that appeals to consumers regardless of the retail context, whereas ‘sophistication’ matters more in fashion retailing and ‘unpleasantness’ in grocery retailing. BPA is a significant driver of retail brand equity, regardless of the retail context.     

Economies of scale in grocery retailing in Finland

This paper considers the question of store-level economies of scale in grocery retailing. Hedonic price and cost functions are used in modelling the price and cost structure of retailers, but without making the assumption of constant mark-ups, as normally done in hedonic price studies. The main result of the paper is that store-level economies of scale do exist in grocery retailing: large stores have on average 10% lower costs per sold unit than small stores. The second major finding is that most of the benefits from scale economies are passed on to consumers: the price level of large stores is 10% lower on average than of small stores.     

Gains and losses of exclusivity in grocery retailing

Conventional wisdom dictates that convenience goods should be distributed as intensively as possible. Still, exclusivity arrangements are rapidly gaining way in grocery retailing. We discuss the possible performance outcomes of exclusivity deals, and propose a unified framework (i) to quantify the gains and losses of such arrangements in consumer-packaged-goods markets, and (ii) to decompose the total monetary gains and losses into a variety of sources. Our framework considers both the manufacturer and the retailer granted the exclusivity right, and accounts for the fact that both dyad parties may be active in multiple, inter-related, categories.     

A structural equation model of impulse buying behaviour in grocery retailing

PurposeEnvironmental changes, specifically the economic crisis and the growing penetration of digital technologies, have produced significant changes in shopping habits designed to create new paradigms for impulse buying behaviour. A new scenario seems to be opening up where customers enter the store much more prepared than in the past searching for products they had planned to buy. The purpose of this paper is to explore the determinants of impulse buying in a context of more planning and preparation for shopping.Design /methodology/approachThe data were obtained using a structured questionnaire from 316 respondents interviewed instore thanks to the cooperation of a leading Italian retail chain. We conducted a two-stage approach mall-intercept survey method to collect data. Firstly, we interviewed customers before entering the store, enquiring them about the pre-shopping preparation and shopping enjoyment tendency. Secondly, we interviewed the same customers at the end of their shopping trips, asking them to indicate which purchases were unplanned. Then, shoppers answered to questions regarding their general tendency to engage in impulse buying, the urges experienced to make impulse purchases, the level of positive and negative affect experienced during the shopping trip.FindingsIn the structural model tested with LISREL 8, we found that pre-shopping tendency influences directly impulse buying: confirming our hypotheses, a higher pre-shopping preparation lead to lower levels of impulse buying. Results also showed that the personality variables (shopping enjoyment tendency and impulse buying tendency) influenced impulse buying through positive affect and urge to purchase. Our research did not find support for the relationship between negative affect and urge. Finally, higher levels of urge to buy impulsively lead to higher levels of impulse buyingOriginality/valueFrom the review of past and recent literature, we have not found a model that considers the influence of pre-shopping tendency on impulse buying behaviour. This paper addresses this major gap in extant literature by including pre-shopping tendency among the individual characteristics (impulse buying tendency and shopping enjoyment tendency) taken into consideration by past contributions.     

Analysing technical and allocative efficiency in the French grocery retailing industry

This paper focuses on the innovative two-stage procedure developed by Simar and Wilson to estimate the determinants of French retailing efficiency. During the first stage, the technical and allocative efficiency of French retailers will be assessed using the DEA (Data Envelopment Analysis) methodology to identify the best companies, in order to serve as peers for improving the performance of weaker companies. The companies analysed have therefore been ranked according to their total productivity over the period 2000–2004. During the second stage, the Simar and Wilson model will be used to bootstrap DEA scores via a truncated regression. The economic and managerial implications arising from this study will also be considered.     

Trends in the internationalization of grocery retailing: the European experience

The three traditional views of retail internationalization involve the diffusion of retail concepts, operational involvement in foreign markets and the international- ization of a retail management function. None of these identified categories is new, but there is evidence that there is an unprecedented level of interest in internationalization as a viable strategic option for retailers. This paper examines these themes within die grocery sector in Europe, through an empirical investigation of activity in the post-war period.     

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.     

Consumer shopping value, satisfaction and loyalty in discount retailing

To date, few researchers have conducted comprehensive examinations of the relationships between consumer shopping value, satisfaction and loyalty in retailing. Further, the majority of extant research has been limited to upscale retail sectors where the role of the salesperson is crucial and long-term relationships are common. In order to extend the findings of previous research to additional retail sectors, the current study investigates the complex interrelationships between utilitarian and hedonic shopping value and important retail outcomes for discount retailers. Utilitarian and hedonic shopping value are found to influence key outcome variables including satisfaction, loyalty, word of mouth communication and share of purchases in the highly competitive discount retail sector.     

Consumer observations on channel choices—Competitive strategies in Finnish grocery retailing

This article aims at providing consumers’ observations on their choices between various grocery retailing channels. The theoretical roots are based on Porter's competitive strategies and their further developed variations, but also the retailing research concerning competition and consumer perspective will be discussed. The results of the study confirm that consumers have one primary store, which is often a hypermarket or a supermarket. In addition, they prefer to shop in several supplementary stores located close to their homes. The empirical study also reveals that all retail channels have both weaknesses and strengths from the consumers’ viewpoint.     

Packaging-free products: A lever of proximity and loyalty between consumers and grocery stores

This research investigates the consequences for retailers and their stores of a new sustainable consumption trend—the purchase and consumption of bulk products. It examines the effects of offering packaging-free products on three subdimensions of perceived proximity (identity, process, and relational) and on transactional loyalty (satisfaction–loyalty) and relational loyalty (satisfaction–trust–loyalty). A total of 1407 buyers and consumers of bulk products at a convenience store (of a university cooperative style) filled out an online questionnaire. These consumers were then divided into three subgroups (convinced, pragmatic, and wary). This research empirically establishes that unpacked products are a strategic tool for retailers and their stores to create or strengthen the relationships established with their customers. Unpacked products and the proximity they create between a consumer and a store are the first link in the development or preservation of a relational chain between the consumer and the store. Moreover, the step reached by the consumer in his process of purchasing and consuming packaging-free products (from the discovery stage to the already well-established habit) has a direct impact on the relational chain built.     

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.     

Predicting future consumer purchases in grocery retailing with the condensed Poisson lognormal model

To identify the effect of marketing actions on consumer purchasing, analysts must disentangle the dynamic component of purchasing from expected period-to-period stochastic fluctuations. This is done by comparing marketplace observations to the conditional expectation of future purchasing. Current methods of deriving the conditional expectation contain systematic bias and rely on certain unrealistic modelling assumptions. We therefore propose a new model to predict future consumer purchases in grocery retailing. The new model is a mixture of Erlang-2, Poisson and lognormal distributions or a condensed Poisson lognormal model (CPLN). Using two grocery retailing datasets from the UK, we demonstrate that the CPLN model predicts future consumer purchases well with error of 7% and 9%, respectively. Compared with the previous benchmark model, the condensed Negative Binominal Distribution (CNBD), the CPLN model reduces error by 50% (7% versus 14%) and 67% (9% versus 27%), respectively. Theoretical and practical implications for retailers are discussed.     

Barriers and enablers for innovation in the retail sector: Co-innovating with the customer. A case study in grocery retailing

This article aims to analyze innovation barriers and drivers in the retail sector and report on a successful product innovation case study of a leading grocery retailing firm in Spain. The firm, Mercadona, successfully launched an original co-innovation initiative with its customers consisting of bringing consumers to co-innovation labs set up by the company, having them analyze, in a home environment setting, how they use the firm's products and what suggestions they have for alternative methods, improvements, or completely new developments. The research findings were conclusive that a combination of customer focus culture, brand development, and cooperation with suppliers was crucial for the success of the project. Technology contributed as well as a supportive tool of the communication with consumers. The method followed a new and unique ethnographic approach.     

Making working in retailing interesting: A study of human resource management practices in Danish grocery retail chains

This paper discusses how five retail chains in the Danish grocery industry attempt to make low-wage, low-status store-level retail jobs as checkout operators and sales assistants interesting. It does so from the perspective of both retailers and employees. Following analysis of the social and institutional context of Danish grocery retailers, we identify three types of retail employees (transitional workers, core employees and career seekers), who have different motivations and aspirations for working in grocery retailing. The central challenge for retailers is to make store-level retail jobs interesting to the different employee types. Although retailers mainly focus their attention on career seekers, we find that working in retailing is interesting for all employee types because the retailers are currently able to meet their respective motivations and aspirations. Nevertheless, we identify several areas in which retailers can improve their practices.     

Building customer loyalty in retailing: not all levers are created equal

This research examines the determinants in building and maintaining customer loyalty in grocery retailing. The first part introduces a distinction between traditional, ‘mass’ levers such as range and price, and relational, ‘targeted’ levers based on individual customer information. The second part focuses on the role ofthese two sets of levers for differentiation, that is, to what extent they are perceived by customers as distinctive to a retailer. For the first time, parallel analysis of retailers and consumers is used to obtain a dual perspective on loyalty drivers. Most supermarket chains in Italy today are found to invest marketing resources in the ‘mass’ levers of range and price. They are also starting to use other levers for differentiation, although effectiveness of their attempts varies a great deal and the perception of diversity by customers varies a lot from one banner to another. We also find that relational levers cannot be separated from traditional levers to sustain loyalty, but they clearly play a secondary role. Investment in targeted marketing is no substitute for that in traditional mass loyalty tools such as range and price.     

Building customer trust and loyalty: an empirical study in a retailing context

This paper integrates the seller's characteristics and the consumer's individual characteristics in testing the person-to-person and person-to-firm effects of trust on loyalty in the department store. A multidimensional model of the behavioural components of trustworthiness is used to examine their differential effects on consumer trust. The results reveal that the effects of behavioural components of trustworthiness on trust in salespersons and trust in department stores are different. Trust in salespersons contributes to the trust in the department stores they work for. In addition, although both trust in department stores and trust in salespersons are expected to enhance customer loyalty, person-to-person trust has stronger influence on loyalty than does person-to-firm trust. The findings also suggest that customers' individual characteristics should be considered in assessing the role of trust in business relationships other than sellers' characteristics.