Beyond convenience: the future for independent food and grocery retailers in the UK

The UK's independent food and grocery retail sector's competitive advantage of 'convenience' has been eroded in recent years as major retailers increase opening hours and develop their own convenience trading formats. As a result, large numbers of independent retailers are closing. A UK-wide survey was undertaken to identify other sources of competitive advantages, and the changes needed to stop or reverse the decline in this sector. Exploratory semi-structured interviews led to the development of a questionnaire on six major issues affecting the sector. 'Snowball' sampling, using industry partners, provided 142 respondents. The provision of a 'social shopping experience' emerged as a key competitive advantage that could be developed. Improving vertical and horizontal trading alliances, and the wider use of information technology, provided other options.     

Investigating the impact of Internet of Things services from a smartphone app on grocery shopping

This study investigates the impact of Internet of Things (IoT) services from a smartphone app in a retail grocery shopping situation. It examines four variables, namely price, expiry date, quality indicators and offers. All four variables were examined in relation to two levels; traditional information and IoT services. A scenario was arranged whereby 226 participants were to purchase, among other products, fresh salmon in a grocery store using the store's smartphone app. Findings from a conjoint study show that the following IoT services; “updated expiry date”, “aggregated national customer experience index”, and “personalized offer based on product in the basket” evoked the approach and abated avoidance tendencies to explore the smartphone app, while simultaneously increasing the likelihood of buying based on information from the app. The IoT service “Real-time price” had a varied impact on participant approach-avoidance tendencies to interact with the app. Scenario simulation analysis shows that some IoT services can be a deal-breaker in a competitive grocery market. Consequently, analyzing the impact of IoT services through the lenses of approach-avoidance distinction and choice indication can help retail grocery managers develop more effective marketing strategies that deliver convenience to the consumers.     

Intra-household task allocation in online grocery shopping: Together alone

This paper explores how households organize the process of e-grocery buying in a click-and-collect context, down to the level of the two main subtasks: the online ordering and the picking-up. Self-collected survey data on 112 users of Belgian click-and-collect services first provide a quantitative perspective. But we primarily exploit in-depth interviews with 15 households. Both our quantitative and qualitative findings indicate that women today are still the main responsible for grocery shopping, even in an online context. Especially the ordering is a woman's task; the collecting is more equally divided across genders. But the key result is that couples exploit the opportunities for further task division provided by e-grocery shopping. In our survey we find that in 72.5% of the couples both partners are involved in the process, but that in roughly three quarters of these cases at least one of the tasks is performed independently. In other words, many couples do it ‘together alone’. Our qualitative analysis further shows that the roles of the partners have become more fixed, in that subtasks are assigned exclusively to one partner. As for the reasons behind the task allocation, we find indications of the relevance of time availability, relative resource, and gender arguments (respectively, the presence of young children, imbalances in educational status and income, and traditional roles), but also of purely pragmatic reasons.     

Taking advantage of the gluten-free opportunity: Assortment as the key driver for modern grocery retailers

Over recent years, gluten-free products have shown a significant increase in consumption internationally. Retailers from the modern grocery distribution have the opportunity to take advantage of this positive trend, thus benefitting remarkably in terms of sales and store patronage. The present work is based on the analysis of Italian IRI sell-out data from 2015 to 2019 and aims to verify the role of assortment as an effective retail marketing lever in stimulating gluten-free products sales share compared to that of gluten-containing counterparts. Applying different panel data techniques, we obtained that increasing their assortment share can significantly stimulate gluten-free products sales in general and, within this segment, private label sales in particular.     

Internationalization of the organizational field: Swedish grocery retailers in the European integration process

Abstract

This article describes how import of ideas and practices influence an industry that is in an early stage of internationalization, as well as part of European integration. By using institutional theory, such a situation is depicted as an expansion of the organizational field, in which international isomorphism between organizations has commenced. Studying Swedish grocery retailing, a new set of ideas was found regarding what constitutes an efficient organization. This included centralization, vertical integration and brand management, and it was strongly influenced by foreign actors and markets. We conclude that isomorphism occurs in a decreasingly national field, although not entirely pan-European in character, and that international diffusion of ideas and practices reshape markets, partly independent of goods and capital flows.     

Consequences of personalized product recommendations and price promotions in online grocery shopping

Shopping convenience can be turned into a competitive advantage for online grocery retailers. Consequently, we study how personalized product recommendations (recommendation agents) and price promotions (algorithmic pricing) compensate for the negative impact that consumer's perceived cognitive effort causes on loyalty. By default, the relationship from perceived cognitive efforts to attitudinal and behavioral loyalty is negative, yet these results demonstrate that personalized price promotions lessen the negative impact, while personalized product recommendations do not have such an influence. The findings contribute to a better understanding of personalized marketing activities in today's data-driven online grocery retailing.     

Consumer values,the theory of planned behaviour and online grocery shopping

Taking a hierarchical value‐attitude‐behaviour approach, this study empirically tests relations of consumer personal values, attitude, social norm, perceived behavioural control (PBC) and willingness to buy groceries online. The study distinguishes three groups of consumers: consumers who have not yet bought anything on the Internet; consumers who have bought something on the Internet – but not groceries; and consumers who have bought something on the Internet – including groceries. Data were collected from an online survey of Swedish consumers (n = 1058) using self‐administered questionnaires. The findings suggest that consumers may link personal values to attitude towards online grocery buying – but also that this relation may be moderated by whether the consumer previously has carried out an online purchase or an online grocery purchase.     

Comparing retailer purchase patterns and brand metrics for in-store and online grocery purchasing

ABSTRACT

Research on how vulnerable consumers navigate various marketplaces and service interactions, developing specific consumer skills in order to empower themselves during such exchanges, has received inadequate attention. This paper contributes to this area by empirically drawing on a multi-perspective go-along travel study, consisting of a combination of in-depth interviews and observations of consumer and service provider interactions in mobility services. It addresses both factors that are a source of vulnerability and forms thereof during service interactions, thus unearthing critical mechanisms that explain why vulnerability comes into being. Further, the finding of four distinct forms of active coping strategies, building on the dimensions of proactiveness/reactiveness and explicit/implicit articulation, and how these are related to different forms of vulnerability, provides an understanding of coping with vulnerability during consumer and service provider interactions.     

Role of multidimensional customer brand engagement on customer behavior for online grocery shopping

This study aims to understand the relationship between environmental consciousness and multidimensional (i.e., cognition, affection, and activation aspects) of customer brand engagement (CBE) in relation to online grocery shopping. It also investigates the moderating effect of customer characteristics on the associations among environmental consciousness, CBE, and behavior intention. 358 Korean respondents took part in this research using an online survey to assess the impacts of multidimensional CBE for online grocery. The outcomes reveal that environmental consciousness positively influences cognition and activation aspects of CBE. Additionally, activation, affection, and cognition aspects of CBE positively affect behavioral intention. Multi-group analysis is performed to identify the difference among customers in low and high customer characteristics. In addition, by demonstrating a role for CBE, this study adds to the existing literature on online grocery. Furthermore, the outcomes of this research provide direction for building marketing strategies for online groceries for marketers and practitioners.     

Impact of customer experience on attitude and repurchase intention in online grocery retailing: A moderation mechanism of value Co-creation

The study proposes a comprehensive model framework, Online Customer Experience-Attitude Behaviour Context model for online grocery retailing in a digital scenario. The research also studies the concept of value co-creation in a moderated mechanism. Data was collected from 526 respondents buying groceries online. Analytical Hierarchy Process, SPSS 23, AMOS 22 and PROCESS Macro were applied for further analysis, testing the hypothesis and model formulation. The results reveal that the antecedent's convenience, recovery, and delivery experience impacted the attitude significantly. The emerging concept of value co-creation influenced the overall relationship between the antecedent of Online Customer Experience and attitude but at lower level of value co-creation. Thus, suggesting that involving customers time to time in co-creating a delighting Online Customer Experience may be a good strategy for the online grocery retailers to elevate online customers' attitude and repurchase intention.     

The hidden agenda: emotions in grocery shopping

In this paper, we demonstrate the complexity of consumer decision-making within the supermarket and use videographic techniques to gain greater insight into this. We propose that grocery shopping, often perceived as a routine behavior, can in fact, become quite complex. The broad pattern emerging from our study was that the less time the participant spent looking at the shelves, the less emotion displayed. Where there was longer time spent, there was also increasing physical interaction with the product and a greater display of mostly negative emotion. We suggest that this presents a conundrum for retailers. Does the lack of emotion indicate little or no commitment to the store and/or brand? Or are they so loyal there is no need for consumer engagement? This exploration suggests that further insight can be gained if the emphasis is on how the consumer interacts with their brands rather than assuming that all grocery decisions are predictive.     

Revisiting the showrooming effect on online and offline retailers: The strategic role of in-store service

This study revisits the showrooming effect on online and offline retailers and is the first to examine the strategic role of in-store service in this regard. Considering the effect of in-store service in attracting consumers to offline channels and the showrooming effect of persuading offline consumers to purchase online, we propose a model consisting of two firms, a brick-and-mortar (BM) store and an e-tailer that can invest the staff or facilities necessary to deliver in-store services to consumers. Based on the service decisions, the two firms make their pricing decisions. We compare the optimal decisions of retailers in the cases without and with showrooming to explore the interaction between in-store service and showrooming. Our findings indicate that when a customer bears a high travel cost to visit the BM store, the store should lower the price, and improving the in-store service is ineffective in countering the consumer's showrooming behavior. Moreover, the service level in the case with showrooming can be either higher or lower than in the case without, and the outcome mainly depends on the efficiency of the service investment. Interestingly, in-store services can lead to a win–win situation for both online and offline retailers with showrooming. This study can also be extended to the case of powerful e-tailers or competing BM stores.     

Strategic supply chain choices for multi-channel Internet retailers

Multi-channel retailing—selling through multiple, distinct channels—has been a part of the retail industry as long as there have been main street merchants selling through catalogs. Since the mid-1990s, however, multi-channel retailing has increased dramatically due to traditional retailers selling over the Internet. This trend presents considerable operational challenges because Internet and traditional retail have vastly different demand drivers, product variety issues, optimal inventory configurations, cost structures, supply chain structures, and delivery mechanisms. Consequently, the optimal supply chain configuration for Internet delivery differs considerably from the optimal supply chain configuration for a retail store structure, so designing a supply chain system to serve both channels well is difficult. Accordingly, a set of strategic choices and trade-offs must be made. Here, we present some strategic alternatives.     

Understanding the role of situational factors on online grocery shopping among older adults

This paper seeks to identify the situational factors that drive the adoption of online grocery shopping among older adults. A two-step research process is employed. First, exploratory qualitative research is carried out to identify situational factors that older adults take into account when deciding whether to buy groceries online. This is followed by a conjoint experiment to determine which situational factors are considered most important when making such a decision. The sample consisted of 9 participants in the in-depth individual interviews and 206 respondents in the conjoint experiment. The findings indicate that health, mobility issues, and distance to a store are the most important situational factors driving older adults to buy groceries online. Moreover, the findings confirm that the adoption of online grocery shopping among older adults is a result of a complex trade-off of situational variables. The findings contribute to managerial practice by providing online grocery retailers with insight that can be applied when designing promotional programs targeted at older adults.     

Power,policy networks and planning: the involvement of major grocery retailers in the formulation of Planning Policy Guidance Note 6 since 1988

This paper explores a neglected issue in the study of retail strategy and store location by considering the nature of policy networks operating at the interface between retailers and central government. It argues that informal networks, coupled with the economic power of retailers and the legitimization of their activities with reference to the 'consumer interest', have served to provide retailers with an influential avenue through which they can exert power over the nature of the regulatory environment within which they operate. The paper considers the limited extant 'evidence' of the operation of such networks before moving on to outline the results of a case study. The case study reflects on new store development in the UK grocery sector since 1988 as a backdrop to an analysis of the form of policy networks operating at the interface between government departments and retail organizations. It also explores the role of other stakeholders in this process. The existence of a number of such networks is described and their role explored with reference to the involvement of retailers in the formulation and evolution of Planning Policy Guidance Note 6 on retail development.     

Adoption of online shopping by German grocery shoppers

This study investigates how perceived attributes of online shopping and the psychological characteristics of consumers such as market mavenism, time-stressed behaviour and familiarity with the Internet impact the acceptance and frequency of shopping for physical goods on the Internet. In the study, the traditional adoption paradigm is refined by specifying in a more differentiated manner the outcome of the adoption behaviour and by postulating a mediator and moderator structure which underlies the relation between psychological characteristics, innovation attributes and adoption outcome. Empirical results identify missing touch and feel experiences as the most influential negative obstacle, and the chance to make better deals, the convenience of a delivery service and the independence of opening hours as the most influential positive factors for the adoption of online shopping. Familiarity also favours adoption behaviour, leading to a uniformly better assessment of many online shopping attributes. The influence of time-stressed behaviour and market mavenism on adoption behaviour is ambiguous and their effects appear to be more complex.     

Money,mavens, time,and price search: Modelling the joint creation of utilitarian and hedonic value in grocery shopping

Abstract

This research deductively develops a model of both in-store price search and store deal proneness drawing on hedonic and utilitarian value creation. Based on a sample of 535 US grocery shoppers, the model reveals that in-store price search and store deal proneness share many of the same drivers, amongst these, the value of time being the most important. The opportunity cost of time engaged in price search is explained in terms of shoppers’ financial pressures and role construction as price mavens. Price mavenism influences store deal proneness directly due to its capacity to yield the price information required to build and maintain a role identity, and indirectly through its effect on the opportunity cost of time engaged in price search. The primary implication of the research is that the relationship between time, search, and price mavenism may be best explored by viewing price knowledge, the basis for identity maintenance, as a flow rather than a stock.     

Relationships of retail brand manufacturers with retailers

Abstract

Previous researchers have discussed the convenience of manufacturing retail brands. However, they have seldom developed any empirical work. In this article we present an analysis framework to study the impact of the production of retail brands on the manufacturer's relationship with the retailer, depending on the manufacturer's competitive position in the brands they produce. The model presented is empirically tested through a covariance structure model. In order to do this, we use the data from a postal survey aimed at business units manufacturing retail brands in the Spanish market for mass commodity products.     

The impact of affective and cognitive app experiences on loyalty towards retailers

Although mobile applications (apps) are now widespread, to date few studies have considered the effects that app use has on loyalty towards the retailer. This study aims to explore the impact of affective and cognitive app experiences on loyalty towards retailers. A theoretical model, validated empirically with data from a survey using partial least squares structural equation modelling (PLS-SEM), is proposed. The results show the key role of affective experience and its impact on cognitive experience and that both dimensions positively influence the satisfaction and trust that users have in apps, which in turn has a positive effect on loyalty felt towards the retailer. These findings contribute towards improving the theoretical knowledge of the impact of apps on the retailer-customer relationship, and guide businesses in developing and implementing appropriate app-related strategies.     

The battle of traditional retailers versus discounters: The role of PL tiers

For grocery retailers in Europe, intense competition from hard discount formats like Lidl and Aldi is an established part of the competitive landscape. Due to the highly competitive retail environment, traditional retailers’ private label (PL) tiers are now set to become the new battle ground in this competition. This study analyzes how PL tiers (i.e. economy, standard and premium) affect the competition between discounters and traditional retailers. We use a representative UK household panel dataset (2009–2010) for the ready-to-eat cereal and canned soup category, and estimate a demand model for the choice between national brands (NBs) and PL tiers across the top-7 UK retailers. Using our demand estimates, we conduct several counterfactual experiments that predict consumer responses to different strategies of traditional retailers and discounters in their fight for the consumer. In particular, we compare the effectiveness of three types of PLs offered by traditional retailers to fight discounters: economy PLs versus standard PLs versus premium PLs. We find that premium PLs are not very effective strategies for traditional retailers to fight with discounters. On the other hand, economy PLs manage to steal some market share from discounters, but as a downside they also cannibalize traditional retailers’ standard PLs. Standard PLs seem the most effective tool to fight with discounters, since they steal most market share from discounters (and NBs). From the point of view of the discounters, our results indicate that discounters benefit from a further increase in their NB offerings (assortment depth) as well as from a price cut in their own PLs.