Independent Retail and Grocery Shops in Zimbabwe: Survival and Demise in a Crisis and Post-Crisis Era

Research on independent retail and grocery shops has largely been confined to more advanced markets such as those of the United States and the United Kingdom, ignoring trends in this sector in other markets such as Africa. Findings from these previous studies have established increasing pressure for survival faced by these independent retailers due to the dominance of big local supermarket chains and increased foreign competition. This research investigates the impact of increased local and foreign supermarket retail competition on independent retailers in Zimbabwe during the turbulent hyperinflation crisis era and the post-crisis recovery dollarization era. Key findings from the study focus on the impact of the changing retail landscape on growth and demise of these retailers. The study outlines constraints faced by the retailers and coping strategies that are being used to address the changing landscape and constraints. Implications for marketing practice and policy are then outlined.     

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 role of the brand in driving online loyalty for multichannel retailers

Multichannel retailers offer shoppers the possibility to cross channels to complete their shopping process. Multichannel retailers, unlike pure online sellers, offer shoppers multiple contact points to experience the brand. Also, multichannel retailers can leverage the trust and attachment to their brands that has been built with their offline presence to drive customers to buy online. Our paper explores the role of the customer relationship with the brand, with variables such as brand trust, brand attachment and length of brand relationship, as drivers of loyal behaviours towards the online channel. We compare the impact of these variables with those of the technology acceptance model. Multiple linear regression analysis is applied to data collected through a survey answered by 1533 multichannel retail shoppers in two product categories (apparel and consumer electronics) in two countries (UK and Spain). Our findings show that both brand trust and brand attachment have a positive impact on loyal behaviours towards the online channel, and that different loyalty behaviours, i.e. purchase intentions, word of mouth and electronic word of mouth are explained by different variables.     

Distorted competition: Below-cost legislation, ‘marges arrière’ and prices in French retailing

Abstract

The aim of this article is to demonstrate that the French Galland Act, outlawing below-cost resale via new and more severe invoicing regulation, has reduced the intensity of price competition among retailers in relation to branded goods. Moreover, the reduced intensity of price competition in the retail industry has encouraged a lessening of competition among the manufacturers of major industrial brands. Together, these two effects have sown the seeds of a sustained increase in the price of major brands, accentuating retail competition based more on differentiation than on price. These sustained policies have favoured the development of retailer brands and of hard discount stores and finally encouraged new types of reactions from major retailers and leading manufacturers, such as new types of promotions circumventing the Galland Act and a more intense lobbying activity in order to reform it.     

Theory to practice: HIV/AIDS policies in operation within British retailing

Despite recent scientific advancements, Human Immune Deficiency Virus (HIV)/ Acquired Immune Deficiency Syndrome (AIDS) remains a serious health issue for those involved in employee management. The introduction of the Disability Discrimination Act (1995) has meant that increased numbers of HIV/AIDS infected workers are able to remain in employment, fully protected by this legislation. Because of the nature and characteristics of retail employment, it is suggested that retailers have an increased likelihood of encountering employees and/or customers with the disease, compared with most other industries. This paper examines one particular aspect of the challenge facing retailers, notably that of the ‘operationalization’ of their HIV/AIDS policies into practices, especially in terms of company selection rocesses, education and training, employee relations and employee assistance programmes. Data were collected from a number of leading retail companies, ¹ from which, important observations can be made with regard to retailers' attitudes towards employee welfare in general, and in relation to HIV/AIDS in particular. The research results indicate potential discrimination in terms of employee selection involving a significant number of major retailers, and little comprehensive education/training on HIV/AIDS occurring, despite evidence of disruptive behaviour by staff. In addition, the findings provide evidence that even major companies find it difficult to balance issues of employee welfare against the financial concerns of the organization, in terms of assisting affected employees.     

Constructing a conceptual model of purchase behaviour of village shopkeepers – a study of small rural retailers in Eastern India

Small rural retailers play a pivotal role in the success of marketing efforts of FMCG companies in developing markets. This is owing to the influence of small retailers, alternatively termed as unorganized retailers, on rural consumers. The present study attempts to develop an inventory of items that may predict purchase behaviour. Owing to the unavailability of a suitable instrument in extant literature, a survey of rural marketing practitioners has been conducted to develop relevant statements for questionnaire. The unobservable constructs and the relationships between the constructs are brought out through a study in the eastern region of India. The following constructs have been found to impact the purchase preferences of rural unorganized retailers: quality of supply and delivery, margins and profit, product demand, credit, brand reputation, social and personal recognition, sales force behaviour, seasonality and festivity, and company reputation. A marketer should understand the factors influencing purchase behaviour while targeting rural retailers in developing markets.     

The effects of multi-channel assortment integration on customer confusion

Abstract

The effects of assortment strategy on customer confusion have been discussed for singular channels in the past. However, multi-channel retailers also have to coordinate their assortment across channels. Recent literature has started to investigate which assortment integration strategy is most favourable for retailers, but theoretical and empirical research is still scarce. Until today, customer confusion has not been considered in this discussion. This article seeks to identify the impact of a retailer’s assortment integration on customer overload confusion, assortment perception and their consequences. In an experiment, we manipulate assortment integration internally (online and offline channel of the focal retailer; full and asymmetrical integration) and externally (online channel of the focal retailer and a competing online retailer; full, asymmetrical and no integration). The results indicate that both internal and external assortment integration have an impact on overload confusion and assortment perception. Asymmetrical internal integration induces less overload confusion in terms of its cognitive and affective components and leads to superior assortment perception. Full and asymmetrical external integration evoke less confusion with regard to its cognitive component. Eventually, overload has detrimental short- and long-term effects for the retailer. Multi-channel retailers should consider our results when implementing an assortment integration strategy.     

Perceived effect of a salesperson's stigmatized appearance on store image: an experimental study of student's perceptions

The Perception of a specific stigma, obesity, and its influence on store image was studied. Previous studies have acknowledged the role salespeople play in the perception of a store's image, but no previous studies have specifically focused on the influence of the physical appearance of sales personnel on store image. The results of an experiment that examined students' perceptions of salespersons' appearance showed that, if a salesperson was described as obese, then the store was perceived as having a poorer image and as being less successful, regardless of the sex of the salesperson or the type of store. The implications of these findings for retailers are discussed in light of the Americans with Disabilities Act and recent legal discussion concerned with protecting physically stigmatized workers.     

How well do ‘off-price’ retailers satisfy consumers?

Off-price retailing is a new form of discount or low-price retailing that has become prominent in the U. S. during the past decade. In an attempt to satisfy today's quality-and price-conscious consumers, off-price retailers have utilized a marketing strategy of ‘brand and designer names for less’. Based on research assessing consumers' attitudes towards apparel offerings of off-price versus conventional retailers, we suggest that off-price retailers are not yet successful at satisfying consumers' needs and wants in their special niche of the market. We recommend several revised marketing strategies to enable off-price retailers to satisfy consumers better, and thereby maintain their niche in the ever competitive consumer market. We conclude by observing that it is important that consumer-orientated professionals take an advocacy role in encouraging retail institutions such as off-price stores to revise their marketing strategies to serve consumer interests better.     

The elderly food consumer: disadvantaged?

Older consumers are an important subgroup of the population whose numbers are rising. Intense competition between retailers and changes in patterns of food shopping among consumers in general have led to research that focuses on factors that contribute to older people being disadvantaged. Research in Scotland has investigated the impact of the food retail sector on elderly people and results indicate that elderly people shop frequently and spend a considerable proportion of their income on food. Income, location, transport and the supermarket environment are all potential factors that can contribute to the disadvantage of older people.     

Integrating Bricks with Clicks: Retailer-Level and Channel-Level Outcomes of Online–Offline Channel Integration

This research examines the impact of online–offline channel integration (OI), defined as integrating access to and knowledge about the offline channel into an online channel. Although channel integration has been acknowledged as a promising strategy for retailers, its effects on customer reactions toward retailers and across different channels remain unclear. Drawing on technology adoption research and diffusion theory, the authors conceptualize a theoretical model where perceived service quality and perceived risk of the Internet store mediate the impact of OI while the Internet shopping experience of customers moderates the impact of OI. The authors then test for the indirect, conditional effects of OI on search intentions, purchase intentions and willingness to pay. Importantly, they differentiate between retailer-level and channel-level effects, thereby controlling for interdependencies between different channels. The results of three studies provide converging evidence and show that OI leads to a competitive advantage and channel synergies rather than channel cannibalization. These findings have direct implications for marketers and retailers interested in understanding whether and how integrating different channels affects customer outcomes.     

The competitive response of small,independent retailers to organized retail: Study in an emerging economy

This study aims to decipher the competitive response of small, independent retailers in an emerging economy – India – to the onset of competition from large, organized retailers. The competitive behaviour is comprehended in terms of patterns of retail functional and business strategies, in further classifying the retailers into strategic groups, and finally by assessing the performance of these clusters. The study is based on a primary field survey of 605 grocery shops in two cities in India. The findings of the research point towards the presence of distinct strategies, strategic groups, and the positive impact on small retail performance of adopting distinct retail functional and business strategies.     

The impact of customer awareness of manufacturer name disclosure on retail brand attitudes and loyalty in Korea

This paper explores the impact of exposing the name of the manufacturer on a retail brand product upon national brand loyalty, retail brand loyalty and store loyalty, It does so by exploring customer attitudes towards retail brands in South Korea, where there is a legal requirement for retail brands to portray the manufacturer׳s name. For international retailers entering markets where such disclosure is a legal requirement an understanding of the implications of this for retail brand management is essential. The findings suggest that in the Korean case revealing the name of the manufacturer who supplies the retail brand on the product packaging has a positive influence on attitudes towards retail brands, although it did not mitigate the perceived risks held by customers towards retail brand products in general.     

Congruity's role in website attitude formation

Retailers with physical stores that also have an online presence (one form of multi-channel retailers) have unique challenges. Consumers bringing their prior attitudes towards the retailer to the site is one such challenge. However, researchers studying website issues focus only on consumers' evaluations of website characteristics, failing to account for how prior attitudes towards the firm and congruity of the website with the retailer's physical store image might affect information processing and attitude formation. The current study draws on categorization theory, by proposing that increases in the congruity between the retailer's known offline and their online presence should decrease the emphasis new visitors place on website characteristics (a piecemeal process) and increase the influence of their prior attitudes towards the firm (an attitude transfer process). Results support predictions and provide guidance for multi-channel retailers.     

Biometric technology in retailing: Will consumers accept fingerprint authentication?

Biometric technologies are currently being tested by retailers to determine their applicability to business operations. Generally, the benefits of biometric systems relate to improved speed, more secure transactions, and better information management; however, such technologies also present retailers with the problem of protecting consumer privacy. This paper concentrates on one form of biometrics that is most often being tested by retailers––fingerprint authentication at point-of-sale. The purpose of this paper is to determine how readily this specific biometric technology will be accepted by consumers. Findings presented in the paper indicate that there has not been strong support by consumers.     

Foreign market selection of online retailers — A path-dependent perspective on influence factors

Internationalization is a critical task for online retailers, yet the question of how and in which order online retailers choose foreign markets has not been investigated. Based on dynamic capabilities and institutional theory, the authors identify, test and explain factors influencing the foreign market selection behavior of European online retailers. Following a dynamic, path-dependent view of the market selection process over time, the hypotheses are tested using a longitudinal database containing observations of the foreign market selection behavior of 140 online retailers in Europe, accounting for 825 market entries over 15 years. The use of a rank-ordered logistic regression model allows the observation of how different attributes contribute to overall evaluations of the attractiveness of chosen markets, assuming that online retailers attempt to maximize the utility of markets for their specific interests, in dependence of the observed factors.The results indicate that market size, rule of law, and local market knowledge, as well as a common language and the logistics performance of a target country have a positive effect on the likelihood of selecting a target country. Although the internet is said to reduce the impact of distance, both cultural and geographic distance as well as added geographic distance still show a negative impact on the selection of foreign markets by online retailers.     

Online and offline retailing: What we know and directions for future research

The fast-paced growth of e-commerce is rapidly changing consumers’ shopping habits and shaping the future of the retail industry. While online retailing has allowed companies to overcome geographic barriers to selling and helped them achieve operational efficiencies, offline retailers have struggled to compete with online retailers, and many retailers have chosen to operate both online and offline. This paper presents a review of the literature on the interaction between e-commerce and offline retailing, highlighting empirical findings and generalizable insights, and discussing their managerial implications. Our review includes studies published in more than 50 different academic journals spanning various disciplines from the inception of the internet to present. We organize our paper around three main research questions. First, what is the relationship between online and offline retail channels including competition and complementarity between online and offline sellers as well as online and offline channels of an omnichannel retailer? Under this question we also try to understand the impact of e-commerce on market structure and what factors impact the intensity of competition /complementarity. Second, what is the impact of e-commerce on consumer behavior? We specifically investigate how e-commerce has impacted consumer search, its implications for price dispersion, and user generated content. Third, how has e-commerce impacted retailers’ key managerial decisions? The key research questions under this heading include: (i) What is the impact of big data on retailing? (ii) What is the impact of digitization on retailer outcomes? (iii) What is the impact of e-commerce on sales concentration? (iv) What is the impact of e-commerce and platforms on pricing? And (v) How should retailers manage product returns across online and offline channels? Under each section, we also develop detailed recommendations for future research which we hope will inspire continued interest in this domain.     

The Effects of Search-Related and Purchase-Related Mobile App Additions on Retailers’ Shareholder Wealth: The Roles of Firm Size,Product Category,and Customer Segment

Mobile channel additions have been shown to increase consumer-brand relationships, brand satisfaction towards and overall purchasing from a retailer, but what is less apparent is whether shareholders are fully rewarded for retailers’ mobile channel additions. Results from an event study on 115 announcements relating to mobile app additions of publicly traded U.S. retail firms between 2009 and 2016 indicate that the stock market responds generally positively to mobile app additions, but specifically to the two mobile app addition types. Stock market responses to search-related and purchase-related app additions are moderated by firm size, product category, and target customer age. For announcements of search-related apps, the market responds more positively to product retailers than to service retailers, and to small firms than large ones. For announcements of purchase-related apps, the market responds less positively to firms that target younger customers than firms who do not especially target them.     

The process of internationalization: how Swedish food retailers perceive their domestic supplier relationships

This paper focuses on how retailer–manufacturer relationships are influenced by the process of internationalization. Empirically, we study the Swedish food sector. It has previously been domestically oriented and concentrated. As Sweden joined the EU in 1995, however, a lot of entry barriers have disappeared and Swedish food retailers have been given new purchasing opportunities. We investigate how these changes have affected the retailers' relationships with their suppliers.Theoretically the paper is based on a network perspective and resource dependence theory.It develops and tests a set of hypotheses on howa retailer's relationships to its domestic suppliers will change when it gets a greater access to foreign products and suppliers, using a survey of 621 Swedish food retailers. Among other things, the study reveals that while being prepared to buy fewer products from Swedish manufacturers, the retailers still consider it very important to co-operate on a long-term basis with domestic suppliers.     

Hospital Retailing

The United Kingdom 1988 Health and Medicine Act offered local Health Authorities the opportunity to generate income from commercial activities unrelated to health care. Retailing offers large income potential, and some Authorities are taking full advantage, employing commercial advisers or entering into agreements with retail developers and retailers to exploit this potential. The authors set out to discover whether there was much potential in hospital retailing, assess the views of the main interest groups involved (Health Authorities, retailers and customers) and see whether any guidelines could be suggested to aid Authorities and retailers considering taking this route. Their conclusion is that there is much potential since there are advantages for all three groups providing that customers requirements were met and that developers avoid an over-commercial environment in hospitals.