Discount Store Retailing in Korea

Abstract

This study examined the effects of consumers' internal shopping motives and external store attributes on excitement that shoppers may experience at discount stores in Korean markets and the mediating impact of excitement on selected behavior outcomes. Among three types of shopping motives (socialization, utilitarian and diversion), diversion significantly affected the level of excitement that shoppers experienced at the discount store. Store attributes of facility-related convenience and a neat, spacious atmosphere had an impact on shoppers' excitement at the discount stores. Excitement positively affected shoppers' satisfaction and repatronage intentions in discount store retailing in Korea. The empirical study results have major implications for multinational retailers as well as for future research in the area of international retailing.     

Keeping customers shopping in stores: interrelationships among store attributes,shopping enjoyment,and place attachment

Our research purpose was to identify and test variables that contribute to customer's willingness to continue to shop in brick and mortar stores, hereafter referred to as store loyalty. Specifically, we examined interrelationships among store attributes, shopping enjoyment, place attachment, and store loyalty with apparel shoppers. Significant store attributes that predicted shopping enjoyment included atmosphere, price, leisure, design, and service. Shopping enjoyment was a significant predictor of both place attachment and store loyalty. In turn, place attachment was found to be a significant predictor of store loyalty. The implications for store retailing are discussed as well as limitations and areas for future research.     

Shopping enjoyment and store shopping modes: The moderating influence of chronic time pressure

The objectives of this study were to investigate: (a) whether shopping enjoyment has a differential influence on two key store shopping modes (browsing vs. bargain hunting); (b) whether the level of chronic time pressure moderates the influence of shopping enjoyment on each shopping mode; and (c) whether each of the shopping modes has a differential influence on hedonic shopping value. Data were collected from a sample of US store shoppers (n=1009). Results revealed that the influence of shopping enjoyment was much stronger on the browsing mode than on the bargain hunting mode. In turn, the browsing mode exerted a stronger influence on hedonic shopping value. Also, this study confirmed that the level of chronic time pressure significantly moderated the influence of shopping enjoyment on the browsing mode. Implications for brick-and-mortar retailers were discussed with suggestions for future research.     

Retailing strategy for customer growth and new customer attraction

The image that current and potential customers have of a retail store affects the magnitude of patronage at that store. In attempting to increase store patronage, management of a retail store must look to people who already are customers, as well as to people who are not current customers. The appropriate strategy depends upon the dimensions used by people in their evaluation of the store. The hypothesis is tested that the strategy used for gaining increased patronage from customers may have to differ from that used to gain patronage from noncustomers.Field survey techniques were used to collect data from 225 adult females. Respondents evaluated three large retail department stores, which were believed to have distinct images in the minds of female shoppers, on the basis of a set of 12 semantic scales that represented various store attributes. Each respondent indicated frequency of shopping at each store. The data were analyzed by two different multiple discriminant analyses. For the customer growth strategy, the semantic scale measures were used to develop a discriminant model for each store to determine which attributes would be the best predictors of shopping frequency. The analysis relevant to the strategy of new customer attraction differed. First, shoppers were classified as loyal to one store on the basis of their rates of shopping at each store. Second, the 36 attribute measurements (12 scales for 3 stores) were factor analyzed, and three factors were extracted. Those attributes which loaded highest on each of the factors for each store were used as predictor variables in the discriminant analysis.The results of this study indicate that different marketing strategies may be required for increasing sales to existing customers and attracting new customers. In addition, consumers do not necessarily differentiate similar type retail stores on the same dimension.     

The importance of atmospherics in the choice of hypermarkets and supermarkets

Are the atmospheric variables equally relevant for supermarket and hypermarket customers? As a contribution to the customers' choice of the store format, firstly this work aims to determine the perception of differences between hypermarkets and supermarkets in terms of store attributes. Second, it sheds light on the role played by atmospherics in the customers' decision process. This study uses a logit approach to model the probabilistic choice of the customers' store format using atmospheric and other marketing variables as important attributes of the grocery store. The model's estimation is based on personal interviews conducted during the shopping process in urban supermarkets and hypermarkets belonging to the same retail chain. The findings show that although the atmospheric variables are significantly important for both store formats, the customers perceive differently the importance of each retail atmospheric cue and other marketing variables, when buying in a hypermarket or in a supermarket: the choice of buying in hypermarket is explained by the significant importance given to the latent variables named pleasant atmosphere and accessibility and responsiveness; in contrast, the choice of buying in supermarkets is explained by the significant importance given to the latent variable nice decoration and empathy with the staff. The other latent variable designated by other marketing variables is only significantly important in the decision of choosing supermarkets.     

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.     

Shopping behaviour among gay men: issues of internalized homophobia and self‐esteem

Connections among internalized homophobia, self‐esteem and various shopping behaviours are investigated. Internalized homophobia, which affects nearly all gay men to some degree, and self‐esteem may affect shopping behaviours such as credit card debt, venue of shopping, enjoyment from shopping, amount of time spent shopping and frequency of shopping. Data from 213 gay men were collected using an Internet‐survey design. Results demonstrate that internalized homophobia has weak to moderate effects on thrift store shopping, discount store shopping and credit card debt. Although self‐esteem did not predict shopping behaviour, it was correlated with shopping enjoyment. Implications, limitations and future research are discussed.     

Virtual store layout: an experimental comparison in the context of grocery retail

Interface design and the interaction between customer and computer are factors critical to business effectiveness over the Web. A key aspect of conventional retailing is store layout; an analogous aspect in virtual retail is virtual store layout. This paper reports on an experimental investigation into the use of three different layouts in online grocery retailing: freeform, grid, and racetrack. These three most common conventional retailing layout types were transformed into virtual layouts for computer-mediated interfaces. Subjects in Greece and the UK participated in a laboratory experiment: they were given a planned shopping task with money to spend, and performed their shopping through a virtual store with layout as the manipulated variable. The results show that layout significantly affects online consumer behavior, but that predictions generated from the literature of conventional retailing about differences in the outcome of layouts do not generally hold in a virtual setting. Some of the findings can be explained by reference to research in Human Computer Interaction (HCI).     

The effect of dynamic retail experiences on experiential perceptions of value: an internet and catalog comparison

The authors introduce cognitive continuum theory (CCT) as a theoretical framework to examine the effect of consumer shopping tasks and retail information display properties on consumer perceptions of experiential value. In this empirical investigation, the nature of a consumer’s shopping task is found to exert a direct influence on consumer perceptions of efficiency, economic value, and shopping enjoyment, all active dimensions of value. In addition, congruent interactions between shopping task and retail information display properties exert an enhancing effect on the reactive dimensions of value, as evidenced by perceptions of visual appeal, entertainment value, and service excellence. Future application of CCT is outlined and managerial implications are discussed.     

Understanding factors affecting consumer intention to shop in a virtual world

The objectives of this study were to understand that factors affecting consumer intention to shop in a virtual world and to analyze the relationships among these factors. Particularly, this study explored consumer innovativeness (consumer novelty seeking, consumer independent judgment making) as an external variable that influences consumer intention indirectly through its effects on consumer experiences with the virtual world application (ease of use, control, concentration, enjoyment). The findings indicated that consumers’ perceived enjoyment and control positively influenced their shopping intentions. While consumer novelty seeking had no significant effect on shopping intention consumer independent judgment making significantly affected consumers’ intention to shop in a virtual world indirectly through its positive effects on perceived control, enjoyment, and ease of use.     

Polygamous Store Loyalties: An Empirical Investigation

Grocery store loyalty has been traditionally viewed as a trait of consumers toward a particular store for their overall shopping needs. In this study, we argue that store loyalty shall be regarded as category specific trait, that is, a consumer could be loyal to store A in category one while at the same time be loyal to store B in category two. We name this consumer behavior polygamous store loyalties.We use an in-home scanning panel dataset that tracks purchases of 1,321 households in 284 grocery categories across fourteen retail chains over a 53-week period in a large US market. First, we provide model free evidence of polygamous store loyalties in the data, even though the overall store loyalty based on the traditional view is low. Next, we propose a model to separate category specific effects from overall store level effects. Finally, we discuss how retailers can use the results to gain a new perspective on store attractiveness to improve overall store patronage.     

Linking multi-channel customer behavior with shopping motives: An empirical investigation of a German retailer

Operating multiple channels, in store as well as non-store, allows a retailer to cater to the different shopping motives of its customers. This research into the buying behavior of 525 customers of a multi-channel retailer that operates five channels in Germany shows that most customers use only one channel within a buying process, selecting the channel that best satisfies their shopping motives in each situation. Based on exploratory qualitative and quantitative research, this study identifies five shopping motives: “recreational orientation”, “convenience orientation”, “independence orientation”, “delivery-related risk aversion” and “product- and payment-related risk aversion”. In the majority of the store channels examined in this study (chain stores and bakeries), single-channel users primarily look to satisfy emotional and social needs. Single-channel users of non-store channels (catalogue and online-shop) look for convenience and strive for independence. Multi-channel users, who obtain their information from the online-shop and then make their purchase in the chain store, are combining the independence of online-shop information with the reduction of risks associated with buying products in the chain store. These findings can be used to develop recommendations for managing the individual channels.     

How do storefront window displays influence entering decisions of clothing stores?

Store window displays play important roles in influencing shoppers' store entry decisions and their perceptions of brand/store image. The purpose of this study is to explore how shoppers' perceptions of window displays interact with situational variables in making their store entry decisions. We conducted experimental studies by using merchandise-focused versus artistic storefront window displays under situations comprising of shopping motive types (purchase versus recreational) and cognitive load levels (low versus high). Our results demonstrate the effectiveness of these window displays bounded by the interplay between shopping motives and cognitive loads.     

Perceptions of assortment variety: The effects of congruency between consumers’ internal and retailers’ external organization

This research shows that consumers’ perceptions of variety and satisfaction are dependent upon how the assortment is organized, both internally by the consumer and externally by the retailer. The results of three laboratory studies indicate that for familiar categories, congruency between a consumer's internal categorization structure and the external store layout leads to higher perceptions of variety and higher satisfaction with product choices, while for unfamiliar product categories, congruency between shopping goals and external structure leads to lower perceptions of variety but increased satisfaction with the store's assortment. However, if retailers institute external category filters congruent with consumers’ internal shopping goals that allow them to bypass products, consumers have both lower variety perceptions and satisfaction with the assortment offering.     

An exploratory study of motives for Mexican nationals to shop in the US: More than meets the eye

Outshopping within a country's boundaries and international outshopping across national borders has been long researched. Previous studies have mainly focused on immediate (outer) motives as the fundamental reasons for outshopping. Building on this tradition, we categorized immediate motives for outshopping into the following four groups: (1) product quality, (2) service quality, (3) fashion consciousness, and (4) shopping enjoyment. Our results confirmed previous findings that those four motives are positively related to outshopping frequency. A point of departure from previous research, however, is that based on Hofstede's works [1980. Culture's Consequences: International Differences in Work-Related Values. Sage Publications, Newbury Park, CA; 2001. Comparing Values, Behaviors, Institutions and Organizations Across Nations, second ed. Sage Publications, Thousand Oaks, CA] we identified four inner motives: (1) desire for showing off power, (2) desire for rule of law, (3) egoism, and (4) masculinity. Through structure modeling technique, these psychological needs that exist at a higher level not only influence the outer motives, but also have a direct impact on outshopping frequency. In other words, cross-border shopping can fulfill shoppers’ obvious secular needs existing at a low level, as well as their psychological needs hidden at a higher level. Although our study examined why Mexican nationals choose to shop in the US, the results are applicable to outshopping in general where shopping environments differ in terms of economic, social, and cultural development in different countries. Managerial and research implications are also discussed.     

Cross-Cultural Retailing Research

Abstract

Relatively little is known about consumer perceptions of retailers in Central and Eastern Europe. What store attributes do consumers in these markets emphasize? Do these attributes reflect the culture of the region? These questions are addressed in the case of Estonia. However our main objective is to contrast the Estonian situation with that of a typical Western country, Canada. Two key shopping experience constructs are selected, namely merchandise selection and the interactivity between the store and the consumer. To make the comparison meaningful we have chosen a single retail category, namely discount or low-price department stores. In both countries there were two stores that dominated their respective market, so this facilitates the collection of consumer perceptions. Structural equation modeling using AMOS software has been used to test the equivalence of the constructs across cultures. Our main findings are that (1) both merchandise selection and store-customer interaction are valid constructs across both countries, (2) that the factor patterns have configural invariance or equivalence for each construct across the two cultures and (3) that the factor patterns do not have weak factor invariance across the cultures. In short, we conclude that there are major differences in consumer's discount store shopping experiences across the two cultures.     

Consumers’ perception of store image of joint venture shopping centres: first-tier versus second-tier cities in China

Studies on consumer behaviour and the modelling of attributes representing store image of shopping centres in the context of a developed country have been the focus of many researchers. In contrast, although China has the largest consumer market in the world, the consumer behaviour and consumption psychology of this enormous market remain relatively unknown due to a previously “close-door” policy as well as a high degree of government intervention within the retail sector. This paper discusses the unique nature and development of the retail industry in China, and formulates a model to represent the store image of joint venture shopping centres, which are the only approved form of direct foreign investment into China's retail sector. Research on store image of shopping centres in the west as well as in China has been applied in the formulation of the model, which consists of 21 attributes. The relative importance of these 21 shopping centre image attributes is subsequently analysed between consumers in a first-tier and a second-tier city in China. By being the first of its kind to reflect on China's retail market and its joint venture shopping centres, and to compare the consumer behaviour within different levels of cities in China, this paper provides both researchers and retailers with a better insight and understanding into the psychology of Chinese consumers, and the retailing business in China.     

Understanding the older shopper: A behavioural typology

With regard to the contemporary retail environment, to date, the older shopper has been afforded limited academic attention, which is somewhat surprising given the growth of this population in the UK. Consequently, this study presents an empirically derived typology of older grocery shoppers through the application of salient retail attributes and store image dimensions developed through extensive qualitative research techniques. The findings provide an important contribution towards better understanding differences in shopping behaviour amongst older consumers. The identification of six distinct shopper types, including three new distinct groups, contributes to theory, whilst a number of potential implications for retail managers are explored in light of the findings.     

How does the biophilic design of building projects impact consumers’ responses? – Case of retail stores

The study that biophilic store design (BSD) has a much higher perceived visual quality, increases the desire to patronize, increases willingness to spend retail stores shopping times is on the increase in the literature. The study of greenery in building environments has been vastly studied, however, the inclusion of greenery study in retail stores and its potentials to provide a strategic business advantage have been scarcely explored. This research work draws from the Attention Restoration Theory to unearth the impact of biophilic design attributes on consumer responses. Hence, this study asked: “How do attributes of biophilic design in retail stores impact consumers’ responses in retail stores”. A quantitative research method with an online questionnaire was employed; 177 participants were recruited. Multiple regression analysis was computed via SPSS and demonstrated that the four attributes (predictors) of biophilic design positively impact consumer responses. Findings for three attributes (biomorphic forms and patterns, material connection with nature, and complexity and order) were significant, while a visual connection with nature was not significant. These findings suggest that a biophilic design positively impact consumer responses; however, simply presenting or using natural elements is not sufficient to produce positive consumers' responses. Additionally, the t-test revealed that intent to purchase was significantly higher for a store low in biophilic attributes than the study hypotheses. The study's limitations and implications are discussed herein. This work contributes to the biophilic design paradigm of building projects by empirically demonstrating the restorative potential of lifestyle centers.     

Drivers and barriers for city shopping: Perspectives from retailers and consumers in regional Australia

The decline of retailing in cities is well documented in the international literature, but to date there has been little research in Australia. The objective of this study, conducted in regional Australia, is to examine drivers and barriers for city shopping, and motivations for out-of-town shopping. Surveys were administered to retailers and city shoppers. Qualitative data were analysed using Leximancer to draw out relevant themes and concepts. Responses (n = 367) show store variety, customer service, car parking and the overall offering and experience are important drivers of city shopping, whilst expensive parking, empty shops, lack of amenities and store variety are commonly cited barriers.