The importance of consumer characteristics and market structure variables in driving multiple store patronage

The purpose of this study is to investigate multiple store patronage. Specifically, the aim is to relate the number of stores patronized to a set of consumer characteristics and market structure factors, according to a cost–benefit approach. Data from a sample of 1000 shoppers indicate that only few consumer characteristics impact on multi-store patronage pattern for grocery purchases (gender and shopping activity perception). Moreover, the number of stores operating in the market proved to be an important determinant of patronage set size. Implications for retailers are discussed with suggestions for future research.     

Students' patronage and views on the operations and services of food vendors

Abstract Vendors of meals and snacks, granted the realities of the present changing economic and social lifestyles, will continue to feed large numbers of people despite the insanitary conditions under which most of them operate. This study sought to find out the degree of patronage of food sold by vendors, items purchased, reasons for patronizing, views and opinions on the services patronized. Two-hundred and forty-five students resident in five halls at the University of Ghana completed a self-administered questionnaire each. Eighty-six per cent purchased cooked meals and snacks regularly from vendors. Over two-thirds consumed their meals at the selling sites. However, the services and facilities offered by vendors were judged as inadequate and poor. Nineteen per cent reported having suffered diarrhoea, stomach aches, indigestion and other gastrointestinal problems as a result of eating vendored foods. Three outstanding reasons emerged for the high patronage of vendored foods. They are food always being available (69%); food being cheaper (62%); and more variety to choose from (42%). These findings portray the great influence of money and time on consumer choice of food in our present harsh economic environment. Patrons indicated several unhealthy practices by vendors that pose health threats to patrons. These observations together with several recommendations made regarding the safe handling of food, water and the environment indicate consumers' awareness of the need for safe delivery of the food they consume. There is the urgent need therefore to organize and train vendors, pass a food law, supervise operations of vendors and also educate consumers to choose only safe food and water and insist on a clean food environment.     

The Role of Customer Factors in Multiple Store Patronage: A Cost-Benefit Approach

This paper is concerned with the use of multiple stores by supermarket customers. It relates the number of stores patronized to a set of customer factors under a unifying theoretical framework emphasizing cost-benefit analysis. Respective hypotheses are tested in a large random sample. This study is a first attempt to empirically address the structure of multiple store patronage. It is demonstrated that multiple store patronage is affected by variables such as customer income, satisfaction, and expenditure that are suggestive of heterogeneous cost-benefit tradeoffs and opportunity costs of time. It is shown that customers are intrinsically different in the predisposition to being loyal. In this respect, store patronage is a continuum between single store loyalty and use of several different stores, on which customers vary depending on individual preferences. The empirical analysis also suggests that exclusive patronage of the favorite store arises from two observationally equivalent latent segments that differ in their inclination to remain loyal. The results yield valuable insights into the structure of store patronage and lead to important implications for retail managers. Several extensions are considered. A broad set of research questions surrounding store patronage can be considered from a cost-benefit viewpoint in the sense that consumer decisions in this area involve trading off economic resources against assortment, spatial and temporal benefits.     

Developing the profiles of supermarket customers through data mining

To stay competitive, supermarkets need to develop a viable customer retention strategy. Since a key to the successful development of such a strategy rests with customer relationship management, supermarkets should identify the most profitable ways to build and maintain a loyal customer relationship. In an effort to help supermarkets understand their customers' shopping/patronage behaviour and the ways to retain valued customers, we propose data mining techniques. Using the examples of franchised supermarkets in the south-eastern United States, this paper illustrates the usefulness of the proposed data mining techniques for examining customer grocery shopping behaviour and developing the profiles of loyal patrons.     

Customer Characteristics and Attitudes at Participatory and Supermarket Cooperatives

Rising food prices have contributed to an increase in the number of food cooperatives in the United States. The present study was undertaken to learn more about the characteristics and motives of food co-opshoppers at large supermarket cooperatives with paid staff and a full product range and small participatory co-ops with volunteer workers and selective merchandising policies. Customer counts and interviews were conducted at participatory and supermarket co-op stores and nearby commercial supermarkets in Northern California and in New York State. Shoppers at the participatory co-ops were found to be young, well-educated, ethnically homogeneous, non-affluent, and motivated primarily by low prices, food quality, natural food and co-op philosophy. Customers at supermarket co-ops tended to be more diverse in age and ethnicity, well-educated, with eclectic food tastes, and motivated primarily by convenience, low prices and co-op philosophy. Customers at near by commercial supermarkets were also heterogeneous in age and ethnicity and motivated primarily by price and convenience. The implications of the different customer populations and motives for the future of food co-ops are discussed.     

Outlet patronage in on-the-go consumption: An analysis of patronage preference drivers for convenience outlets versus traditional retail outlets

This study investigates patronage preferences of consumers who purchase and consume food and beverages while they are on-the-go (on-the-go consumption). The focus is on the drivers of patronage preferences for convenience outlets versus traditional retail outlets. A literature based model of patronage preferences is developed in this paper. It is tested based on data collected from a Dutch online sample (n=669) through binary logistic regression. The results reveal that significant relationships exist between patronage preferences in on-the-go consumption and the assortment offered as well as the opportunity to consume products without effort. Moreover, significant relationships between patronage preferences and consumers' time pressure as well as their health orientation exist. Consumers' income and their place of residence allow for limited inferences only. Based on the findings managerial recommendations are developed and avenues for further research are pointed out.     

Measuring physical access to ‘healthy foods’ in areas of social deprivation: a case study in Cardiff

This paper examines some characteristics of ‘food deserts’– areas of social deprivation which have poor physical access to food shopping – in a large British city, Cardiff. The stereotype of the ‘food desert’ is critically examined, emphasizing the importance attached by residents of such areas to easy access to food shopping, especially in multiple supermarkets. The case study of Cardiff briefly discusses the identification of potential ‘food deserts’, and then examines the structures of ‘healthy food’ availability and prices in four areas of the city (two in the inner city, two in the outer city) where physical access to large multiple supermarkets is poor. The analysis shows that the local shops in these areas cannot compete generally with large supermarkets on either availability of items or their prices, but that the local shops in the inner city areas are rather more competitive than those in the outer areas. Implications for research and policy formulation are finally discussed.     

Supermarket self-checkout service quality,customer satisfaction,and loyalty: Empirical evidence from an emerging market

Supermarket shoppers around the world are increasingly encountering and using self-service technologies (SSTs) during their shopping process. The SSTs are mainly offered to reduce retailer costs and enhance customer's experience. Among the many different SSTs available, self-checkout systems (SCS) have become an extremely popular choice of supermarkets around the world. Although some of the main motivations of the supermarkets for offering SCSs are cost cutting, speed, and convenience, supermarkets are also assuming that these services would enhance customer experience, satisfaction, and ultimately loyalty. However, empirical evidence is needed to better understand customer expectations of SCS service quality and how technology based service quality impacts retail patronage. Therefore, the purpose of this research is to examine the service quality of supermarket/grocery store SCSs and its impact on customer satisfaction and loyalty in an emerging market, namely Turkey. Using the SSTQUAL scale (Lin and Hsieh, 2011), data (n=275) for the study is collected from shoppers who had just completed going through the self-checkout counter in a large supermarket chain. The results of this study show that SCS service quality positively influences loyalty through the customer satisfaction path. Managerial and research implications of the findings are discussed.     

An examination of consumers’ cross-shopping behaviour

This study addresses antecedents of cross-shopping behaviour. Five theory-driven hypotheses are derived and tested. The results indicate that impulse buying tendency and perceived time pressure have a statistically significant negative effect on supermarket patronage. Product assortment and price consciousness have a statistically significant negative effect on speciality store patronage, while impulse buying tendency and convenience orientation have a statistically significant positive effect on speciality store patronage. Perceived time pressure has a statistically significant positive effect on meat store patronage. This effect is, however, not statistically significant on seafood store patronage. The findings have managerial implications for both supermarkets and speciality stores.     

Supermarkets in China: the case of Shanghai

Supermarkets have established a visible presence in Shanghai with some 1,000 stores and an estimated 5 per cent of market share. Local chains dominate the sector but well-known international retailers are very active. Studies indicate that a large proportion of consumers regularly shop in supermarkets but they use them 'selectively', mostly for packaged and processed foods, and continue to purchase fresh food in traditional outlets. The author uses a variety of data types and a number of research methods to analyse supermarkets' penetration into Shanghai. A background discussion of the food retail system in Shanghai highlights the traditional formats, the local and foreign supermarket chains, and the independent supermarkets. The data from a consumer shopping behaviour study is then used to assess supermarkets' penetration. Supermarkets' fast penetration into Shanghai is surprising given the findings of earlier studies, which identified the existence of serious limitations on the format's penetration into less developed countries (LDCs). Consequently, the focus in the second part of the paper is on explaining the reasons for the success of supermarkets. The impact of the factors identified in the earlier studies as constraining supermarkets' advance were evaluated and it was found that in Shanghai three of these factors (consumers, traditional retailers and government) did not cause serious problems for supermarkets. Only the supply-side conditions negatively affected their operations. The Shanghai example highlights the need to update our thinking regarding the LDCs' food retail modernization process in a number of directions. First local supermarket chains, not foreign ones, drive the process. Second, supply-side factors, not the demand-side ones that were emphasized in earlier studies, pose the major difficulties. Third, this analysis affirms the importance of the 'selective' adoption phenomenon where LDC consumers who regularly shop in supermarkets continue to purchase fresh food in traditional outlets. The implications of this analysis for food retail modernization theory and for practice are discussed and the prospects for further development of the supermarket sector in Shanghai are assessed.     

Should retailers adjust their micro-marketing strategies to type of outlet? An application to location-based store space allocation in limited and full-service grocery stores

Many retailers today operate strategically different types of sites: ‘limited-service’ stores—that offer all core products/services but only a shallow assortment of non-core services—and ‘full-service’ sites with deep lines of both core and non-core services. An important question for these retailers is whether and how to adopt a micro-marketing strategy in each of these formats. In a micro-marketing strategy, retailers tailor their marketing mix to the characteristics of the local market in which each store outlet operates—a central issue being whether the allocation of store space across product categories should be location-specific. This paper (i) examines the conditions for such micro-marketing to be beneficial, and (ii) in particular—how these benefits depend on store format. It also (iii) indicates how the pattern of space adjustments to local conditions should differ between formats. The propositions are tested in a grocery retail setting, for a retail chain operating limited-service supermarkets and full-service hypermarkets. Our results suggest that micro-marketing is beneficial in both types of format. Yet, the appropriate way of localizing space allocation patterns is format-specific. While supermarkets should primarily adjust the space shares of food (core) categories, hypermarkets should primarily adapt the space shares of non-food (non-core) categories to local market conditions. The outcomes of the study have conceptual as well as managerial relevance and may prove useful for multi-format retailers in a wide range of settings.     

Multiple store patronage: The effects of store characteristics

The present study contributes to the literature on multiple store patronage in two important directions. First, it examines whether consumers׳ perceived importance of store characteristics have effects on multiple store patronage. Second, it examines the relationship between multiple store patronage and consumers׳ share of wallet at the primary store. Our results show that consumers who attach high value to sales promotions are more likely to visit multiple stores. However, store characteristic factors generally did not exert significant effect on multiple store patronage. Furthermore, we find that multiple store patronage and share of wallet are not interdependent and the profiles of consumers in terms of them do not share many common characteristics.     

Correlates of first‐brand loyalty

A mail survey of British supermarket customers shows that the factor most strongly associated with claimed brand loyalty is household income Brand loyal customers also claim to spend more, are more concerned about quality and less about price, are slightly more store loyal and make more use of large out‐of‐town stores Brand loyalty is also related to age; those aged under 25 years and 65 + years are less loyal

There is little difference between those who are primarily loyal to store brands and those who are primarily loyal to manufacturer brands, and there is little evidence that store patronage is raised by loyalty to store brands     

Profiling the Health Food Store Shopper

This paper reports on an empirical study that profiles the health food store shopper. The shopper is primarily female, aged between 30-49, well-educated, a white collar worker and leads an active and environmentally conscious lifestyle. They are concerned about obtaining the proper amounts of fiber, vitamins, minerals and protein and wish to avoid foods with cholesteral, additives and preservatives. They believe health food is higher quality than food products found in supermarkets and are prepared to pay more for healthier products. Information from magazines and personal reference sources played an important part in prompting them to turn to health food stores.     

The role of gender and work status in shopping center patronage

Substantial research in marketing has examined the impact of store atmospherics on retail store patronage [Baker Julie. Parasuraman A. Grewal Dhruv. Voss Glenn B. The Influence of Multiple Store Environment Cues on Perceived Merchandise Value and Patronage Intentions. Journal of Marketing. 2002; 66 (April):120-41]. In addition, research has examined the effect of gender and work status on social influence and role expectations within the context of shopping center patronage [Evans Kenneth R. Christiansen Tim. Gill James D. The Impact of Social Influence and Role Expectations on Shopping Center Patronage Intentions. Academy of Marketing Science Journal. 1996; 24 (Summer): 208-18]. This research extends previous research and examines the differential effects of gender and work status characteristics on the relationship between shopping mall characteristics (including atmospherics) and consumer shopping center patronage. The results of a study of 1015 shoppers demonstrate that there are few significant differences between models for men and women, and even between women who work outside the home and those who do not. Implications and directions for future research are derived.     

Managing Relationships in the UK Organic Food Sector

The paper explores the management of business-tobusiness relationships in the rapidly growing UK organic food industry. Interviewees perceived that supermarkets were attempting to use market power to dominate the industry, despite their partnership rhetoric. This was potentially at the expense of smaller companies that had pioneered the development of the organic food sector. A severe supply shortage of organic products had boosted the relative bargaining position of the pioneer companies. As this advantage declines, the pioneer companies face a limited window of opportunity to build relationships with the supermarkets. The paper concludes by considering implications for relationships within the industry, and for relationship management in general.     

Consumer opinions and practices related to food additives in the purchase situation

The aim of this study was to describe consumer opinions and behaviour in the purchase situation. Sixty female customers, who had bought one of the food items chosen as focus foods (milk snacks, bread, beverages, condiments) of the study, were interviewed in six supermarkets in the metropolitan area of Helsinki. The subjects most often quoted good taste and familiarity as grounds for the selection of focus foods, but not the additive content. The majority of subjects considered Finnish foods to be mainly good and safe although 17 expressed some concern about food additives. The general concern of the subjects about additives did not conform with their actual buying behaviour.     

Generalizing patterns of store-type patronage: an analysis across major Chinese cities

A systematic, analytical study is presented of patterns of patronage across store types (including hypermarkets, supermarkets, grocery stores and free/wet markets) in urban China. Using consumer panel data collected from a cumulative sample of almost 5000 households, results are generalized across 8 major cities (from the North, South, East and West of China) and 6 packaged goods categories (including traditional Chinese items like soy sauce and more contemporary items such as packaged laundry detergent). Analyses show that there are definite patterns of store-type patronage in urban China, most of which are predictable from the NBD–Dirichlet model (e.g. double jeopardy and the duplication of purchase rule). These patterns generalize across all the city/category combinations studied in this paper, although some important deviations are also identified (e.g. an excess loyalty premium). It is shown how retailers and planners can make use of the observations and theoretical predictions to assess key measures of patronage.     

Joint modeling of effects of customer tier program on customer purchase duration and purchase amount

Nowadays, many supermarkets implement a customer tier program to increase their profits because it is expected to raise customers' willingness to purchase by setting thresholds. However, designing an appropriate program is difficult because each customer's heterogeneous purchase behavior is difficult to capture. Therefore, we simultaneously modeled purchase frequency and amount through a marked point process approach while considering program effects and customer characteristics. The results clarified that the points pressure effect was particularly strong among customers who originally visited the store infrequently and had not attained the threshold set up in the customer tier program many times in the past. In addition, we found that the three-tier customer tier program was superior to the two-tier program with respect to the operating income in supermarkets.     

Local and organic food on wheels: exploring the use of local and organic food in the food truck industry

An exploratory study approach was used in this research to examine the use of local and organic food in Toronto’s food truck industry, the rationale for its use, and the challenges that food truck owners face in sourcing it. Results showed that all-but-one of the food trucks sourced local or organic food for their menu and were motivated by fresh taste/quality, social responsibility and customer preference. While there were challenges with utilizing organic/local food due to seasonality and cost, food trucks found they can derive benefits by way of increased patronage, menu differentiation, and competitiveness.