Grocery Purchase Behaviour for National and Own-Label Brands

This study compares the shopping habits for national and ownlabel brands to establish if there are differences in personal characteristics and purchase behaviour between those who buy national brands and those who buy own-labels in the UK. While statistical research could quantify how British grocery shoppers felt about food brands, it usually cannot explain why shoppers had the opinions they did, hence this study. It is thus an investigation, through the eyes of grocery shoppers, to answer the ‘WHY’ questions. Two distinct markets were found to exist. These grocery shoppers differ in terms of socio-economic status, personal characteristics and shopping behaviour. The findings provide information useful to both retailing and manufacturing interests as retail marketing strategies are developed in the face of intensifying competition for shoppers' food expenditure in the market-place.     

Consumer Acceptance of Item Price Removal: A Survey Study of Milwaukee Shoppers

A survey was conducted of 193 Milwaukee food shoppers to determine their experiences and opinions relating to item price removal (IPR) in supermarkets. The principal findings were that opinions of IPR were related to experiences with shopping in IPR environments, extent of price comparison behaviors, and certain demographic variables. Most of the respondents thought retailers should supply a price-marking instrument to shoppers. A majority of the respondents who had not shopped in an IPR store said they would switch stores if their current store removed prices. However, only one-quarter of the respondents who had shopped in an IPR store changed stores and price removal was of secondary importance in this decision. Overall, respondents were evenly split on the need for legal controls in IPR, but respondents who had not shopped in an IPR store and who were from disadvantaged households (with regard to age, income and/or education) were more likely to see a need for legal controls. The findings of this study and ones conducted in other cities suggest that the primary public policy issue is not whether or not item prices should be removed. Rather, the issue is what is the best method of providing shoppers with price comparison information.     

Misperceptions of Grocery Advertising

A survey of food shoppers showed that consumers underestimate the number of advertised grocery store items reduced in price and the average amount these products are marked down. Newspaper advertisements appear to be relied upon more by consumers who believe that advertised brands are of better quality than those not advertised.     

Usage-Based versus Measure-Based Unit Pricing: Is there a Better Index of Value?

In many product categories, unit prices facilitate price comparisons across brands and package sizes; this enables consumers to identify those products that provide the greatest value. However in other product categories, unit prices may be confusing. This is because there are two types of unit pricing, measure-based and usage-based. Measure-based unit prices are what the name implies; price is expressed in cents or dollars per unit of measure (e.g., ounce). Usage-based unit prices, on the other hand, are expressed in terms of cents or dollars per use (e.g., wash load or serving). The results of this study show that in two different product categories (i.e., laundry detergent and dry breakfast cereal), measure-based unit prices reduced consumers’ ability to identify higher value products, but when a usage-based unit price was provided, their ability to identify product value was increased. When provided with both a measure-based and a usage-based unit price, respondents did not perform as well as when they were provided only a usage-based unit price, additional evidence that the measure-based unit price hindered consumers’ comparisons. Finally, the presence of two potential moderators, education about the meaning of the two measures and having to rank order the options in the choice set in terms of value before choosing, did not eliminate these effects.     

Retailers’ Price Positioning and the Motivational Profiling of Store‐Brand Shoppers: The Case of Spain

In recent years, retailers have worked to advance store‐brand strategies, leading to greater success and higher congruence with the retailer's positioning. In this new competitive context, this research aims to characterize store‐brand shoppers in terms of motivation and benefits sought, as well as analyze, on the basis of congruence theory, the moderating role of a retailer's price positioning on store‐brand shopper characterizations. The empirical study combines survey and household panel information related to leading retailers in Spain; the findings reveal that store‐brand shoppers are motivated by their price sensitivity, whereas they are less sensitive to service quality and name brands. However, the retailer's price positioning exerts a moderating effect on shopper profiles: In less price‐oriented retail chains, store‐brand purchases seem motivated less by price and more by quality, brand awareness, and brand reputation.     

Nutrition Labels: An Exploratory Study of Consumer Reasons For Nonuse

Studies of consumer usage of nutrition labels required by the Food and Drug Administration have found that usage levels are low. A mailback survey of food shoppers in Madison, Wisconsin was conducted to determine who uses nutrition labels as well as reasons for nonuse. Multiple regression analysis revealed that compared to users, nonusers did not rate themselves as highly on nutrition knowledge, were less likely to plan meals in advance, and were not as highly educated. When asked why they did not use labels, most nonusers said they did not need them, and a sizable group reported their shopping practices pre-empt label usage. Nonusers also felt that a sample label had too much information. When asked to perform computations from sample label information, nonusers were less successful than users. The implications of these findings for nutrition education efforts are discussed.     

Family Size Underpins Grocery Shoppers' Behavioural Response to Stock-Outs

Abstract

Grocery shoppers were questioned about their response to the stock-out of their preferred item of milk and milk products. This measure was used as the dependent variable in a multinomial logit model with the independent variables being shopper dispositions, the contextual shopping situations, age, and household size. This study identified distinctive customer orientations that foreshadowed shoppers' buying a brand variant, buying another brand, and forgoing or postponing their purchase. A binary logit model then estimated the shoppers'orientations that motivated them to seek their preferred item from another store. It emerged that for most shoppers, their household size appeared to be a pressing variable that influenced the way they tackled the non-availability of their normal choice. Marketing literature postulates that large families invariably gravitate to larger pack sizes. Previous research also observes that brand loyalty is negatively correlated to household size. If their regular choice is not available, shoppers could, therefore, easily be driven to seek alternative brands. This study has identified that it would be useful for brand variants to offer shoppers sufficient consumption time till the products' use-by dates to encourage their purchase and prevent shoppers from crossing over to another brand or store. Central to the ample availability of consumption time is the capacity of channel members to support frequent deliveries of larger pack sizes in small lot quantities to the retail store.     

Price Acceptance for Organic Milk in Beijing,China

This study examines Chinese consumers’ acceptance and price willingness to pay for organic fluid milk. We used questionnaire data gathered in 2014 to analyze the impact of price and milk knowledge, as well as consumer age, gender, education and income on organic milk choice. The results indicate that: 1) young females with a strong educational background have shown the strongest consumption desire for organic milk; 2) those who shop for the family tend to support organic milk and are willing to pay more for the milk; 3) shoppers with more disposable income are willing to pay a premium price for organic milk.     

Price–Quality and Market Share of Consumer Goods in Spain: Retail Brands and Manufacturer Brands1

The development of retail brands has been favoured by the creation of large chains and by the high level of business concentration in the retail sector. It has been supported by an increasing number of consumers who are aware of value and consider that retail brand is the best alternative, with quality levels similar to those of leading manufacturer brands but with lower prices. In this survey, we analyse the price differentials between manufacturer brands and retail brands in several categories of widely consumed products. We study the relationship between the price differential and the mean category price with the market share of retail brands, for foodstuff, perfumes and cleaning materials categories. Finally, we determine the possible connection between the price of a consumer good brand and its real quality.     

The relationship between in-store marketing and observed sales for organic versus fair trade products

To stimulate sales of sustainable products, such as organic and fair trade products, retailers need to know whether their in-store instruments effectively enhance market shares. This study uses sales data and a multilevel modeling approach to explain the market shares of sustainable products according to shelf layout factors, price level, price promotions, and consumer demographics. It argues that the effect of these variables differs between organic versus fair trade products, as buying motives might differ, organic buyers tend to be more loyal, and price is a more informative signal of quality for organic products. Results show that the number of facings has a positive relationship with the market share of fair trade brands, but not with the market share of organic brands. The same holds for the price difference with the leading brand, which is important for fair trade brands but not for organic brands. In contrast, an arrangement of the product category by brand is associated with higher market share for organic brands but not for fair trade brands. Additionally, placement at eye level and clustering of items benefits both types of sustainable brands, whereas they appear to be not very sensitive to price promotions. Finally, higher sales of sustainable products are found in areas where the customer base is older and has a higher education level.     

Individual differences in price responsiveness within and across food brands

Various researchers have reported that in routine grocery shopping the quantity consumers buy varies little across shopping occasions. Even in the presence of promotions, the largest part of promotional sales peaks has been attributed to brand switching. Recent investigations, however, indicated that the quantity consumers buy may include complex intra- and inter-consumer and intra- and inter-brand choice patterns. Using panel data from more than 1500 British consumers purchasing four food products during 52 weeks, the present study examined whether such complex patterns occur and assessed their relative contribution to overall quantity elasticity. Results showed that consumers buy larger quantities when paying lower prices, both within and across brands, and that consumers who buy larger quantities tend to pay lower prices, both within and across brands. The results also indicated that intra-brand price variations, especially those associated with consumers switching across package sizes, account for the largest portion of changes in quantity. Methodological differences might explain discrepancies among previous findings such as the duration of the sample used, the number of brands examined, and the conceptualization of a brand as including or excluding different package sizes.     

Consumers' Use of Nutritional Labels While Food Shopping and At Home

This study examines the impact of sociodemographic and nutrition/health related factors on consumers' use of nutritional labels while food shopping, at home, and when comparing nutrients for different brands of the same foods. The results generally suggest that unemployed individuals and those who place greater importance on nutrition while shopping and following the dietary guidelines are more likely to use nutritional labels while shopping, at home, or when comparing brands. Findings also indicate that education has a positive impact on the likelihood of using labels at home. The amount of time a consumer spends on shopping, primary source of nutritional information, special diet status, and consumer's perception of the importance of price and taste when shopping are also significant factors.     

Usage and understanding of food labels among Lebanese shoppers

Food labelling is a population‐based approach to health education that enables consumers to make better choices by providing information at the point of purchase. This study aimed to assess the food label usage and understanding and factors affecting them among Lebanese supermarket shoppers. A cross‐sectional study was conducted among 748 supermarket shoppers in Lebanon between December 2013 and February 2014 using a pre‐coded structured questionnaire. About 29.3 of the shoppers check the food labels every time they buy a food product and 15.7% never do it. Shoppers who do not read food labels identified the long time needed in reading them as top reason (34.9%), while 9.8% answered that they do not understand them. About 55.4%of the surveyed shoppers read the food labels at the supermarkets. About 44.4% of participants agreed that reading food labels is very important, while 30.3% read the food labels depending on the purchased product. Then 19.4% of participants complained that food labels contain too much information and 13.8% claimed that food labels are difficult to understand. About 60.3% think that food labels have helped people in changing their eating habits, while health and nutrition claims affected the product selection among 59.8% of participants. The food label knowledge score average was 63.1%. Older, obese shoppers having kids, suffering from chronic illness or allergies, following a specific diet and residing in big cities scored significantly (p < .05) higher. The low knowledge score necessitates the nutrition education on how to read and use the food labels. Groceries would be the perfect place to reach out mass consumers.     

How do price range shoppers differ from reference price point shoppers?

Existing research demonstrates that reference price models can explain a significant amount of the variation in customers' price perceptions and purchase behaviors. This study extends the reference price literature by introducing the price range model, which proposes that price judgments are based on a comparison of the market price to the entire range of currently available prices. Our results demonstrate that the fit of a structural heterogeneity finite mixture model improves when the price range model is included along with internal and external reference price models and that the price range model explains a substantial proportion of customers' purchase histories in the toilet tissue category. Profile analysis indicates that internal reference price shoppers switch brands much less frequently than the other two segments and respond to feature promotions for their preferred brand(s). External reference price shoppers have an intermediate level of brand preference and respond significantly less than the other two segments to feature and display promotions. Price range shoppers have the lowest brand loyalty and respond most strongly to both feature and display promotions.     

Consumer price awareness in food shopping: the case of quantity surcharges

Quantity surcharges, higher unit prices on larger sizes than smaller sizes, are often found among grocery items. In this study we consider the question of why consumers buy surcharged goods. We hypothesize that it is the consequence of a failure to price search, and that some buyers purchase larger sizes in the belief they are cheaper, thus avoiding the need for price comparisons. In the analysis we examine canned tuna, using 1990 data from 54 grocery regions on sales, prices, and consumer demographics. Results support the hypothesis. We find evidence that buyers of surcharged items are mainly those with high time and information costs.     

Understanding how consumer education impacts shoppers over time: A longitudinal field study of unit price usage

There remains a lack of empirical evidence for what constitutes effective consumer education around unit pricing in grocery stores, despite researchers continually highlighting the importance of such education. Much of the early work on unit pricing describes self-report estimates of usage, or results of simulated shopping studies which can lack external validity. The current research reports one of the first longitudinal field experiments to examine the impact of consumer education on unit price usage over time, and is based on shoppers' actual grocery spending. Shoppers receiving consumer education displayed progressively higher levels of savings across the first six weeks of the study to a peak of about 17–18%, declining to around 11–13% by the end of the study. Savings were achieved by shoppers from all income levels, and increased with the provision of personalized comparative feedback. The study offers theoretical insights and important practical implications for retailers and policy makers.     

Offering value and capturing surplus: A strategy for private label sales in a new customer loyalty building scenario

The competition between private label brand and national brands in the diaper category is investigated from the view of the private label brand manager. In this category, new customers routinely enter the category buying entry-level diaper sizes (for infants) and then progress to buy larger diaper sizes over time (as their child grows older). Thus, consumer comparisons between the private label brand and national brands are focused on single diaper sizes during any single purchase scenario. Because private label brands are known to suffer from low quality perceptions that often understate the true quality levels of private label brands, this paper advances a pricing strategy to optimize private label performance in the category. The private label brand should price significantly low for small diaper sizes (maintaining a sizeable price gap from national brand competitors). Then, in most cases, the private label brand should shrink the size of this price gap for large diaper size offerings. This strategy will successfully offer initial value to new customers, build private label brand quality perceptions and loyalty, and then capitalize on these gains through higher dollar sales in the late stages of the customer relationship. The price gap shrinking strategy is found to be generally effective, but high national brand competition and too high of an initial price gap diminish the effectiveness of the strategy.     

Online shoppers' response to price comparison sites

Customers' perceptions of price differ in the online environment due to the presence of price comparison sites. The purpose of this study is to examine how price comparison sites affect price and value perceptions of online shoppers across different product types and price consciousness levels of online shoppers. The results of the study indicate that the price information provided by an online price comparison site influences online shoppers' perceptions of internal reference prices. However, the influence of a price comparison site on value perception differs according to product type. As evidenced by the significant interaction effect between product type and price comparison site information, the presence of price comparison sites increases both transaction and acquisition value perceptions for the non-look-and-feel product category (e.g., notebook computers), but not for the look-and-feel product category (e.g., jeans). Contrary to the expectation, online shoppers' price consciousness influences their price and value perceptions independently of price comparison site information.     

Temporal and financial risk assessments: How time and money constrain shopper behavior and influence purchase solutions

PurposeThe purpose of this paper is to better understand the constraints that make shopper behavior unique from consumers and how those constraints manifest themselves in retail purchase solutions.Design/methodology/approachThis study utilized value laddering and phenomenological research methodologies to explore the data gathered from 39 interviews of male and female grocery shoppers.FindingsThis research examines the perceived constraints on shopper resources. The data reveal that all shoppers perceive themselves to be constrained by both finances and time. These findings hold across all income, age, and employment strata. As a result, price and convenience no longer function as segmentation tools. Instead, pricing and convenience become thresholds setting shopper “floor” expectations for retailers, service providers and brands.Research limitations/implicationsThis study was limited to grocery shoppers largely located in the southern US. Future research could expand on the variety of product categories and conditions explored, along with the cultural diversity of the participants.Practical implicationsShoppers' broader view of purchase relationships reduces the importance of transactional savings. Shopper consideration of total market basket value, allows for more focus on services and relationships to drive shopper value. Shopper constraints can result in purchase outcomes different than what consumer research would indicate.Originality/valueThis research is the first to examine elements which may constrain shoppers, particularly temporal and financial risk assessments, and how they impact shopper purchase solutions.     

Directing store flyers to the appropriate audience

Grocery shoppers were questioned about the frequency of purchasing items that were featured in the store's flyers. This measure was used as the dependent variable in a multinomial logit model with the independent variables being various aspects of shopping behaviour, usage of store flyers, age and employment status. Since only one threshold parameter was significant, the four-level dependent variable was then collapsed and a binary model was estimated. This study evidenced that less than half of the respondents looked forward to receiving unsolicited flyers. Most shoppers read the flyers only to be informed of price specials that the store has to offer. The odds ratio of responding to store flyer deals among those who look forward to sales flyers is more than double the odds ratio of those who do not await the flyers, across every category of shopping frequency. Retailers could employ direct marketing to target specific audiences who look forward to receiving store flyers.