Save or (over-)spend? The impact of hard-discounter shopping on consumers' grocery outlay

An increasing number of consumers have come to patronize a hard discounter (HD) to save on their grocery budget. Given the HDs' rock-bottom prices, a complete switch from the traditional supermarket (TS) to the HD format would, indeed, substantially reduce grocery spending. However, consumers typically visit the HD on top of a TS, leading to a more complex purchase allocation and decision process. In addition to limiting the potential savings to part of the basket, these multiple store shopping patterns may therefore result in depletion of self-control resources and to self-licensing, consumers using realized savings to justify additional indulgent purchases. In this study, we explain and empirically analyze the effect of HD patronage on consumer spending, taking the selected shopping pattern (single versus multiple stores, visited on separate versus combined shopping trips) into account. To this end, we use scanner panel data on households' actual weekly purchase behavior. We also examine household differences in these effects, and relate them to household characteristics.Our results show that shifting the entire basket to the HD entails substantial savings. Yet, for the majority of consumers, adding a HD to the store set does not reduce grocery outlay: visiting the HD and TS on separate shopping trips leads to a “status quo”, and visiting them on combined shopping trips even enhances weekly spending. While consumers pay less per unit bought at the HD, this is (more than) offset by the purchase of larger quantities across a broad range of product categories, and of more expensive items at the TS. Especially older consumers or larger households, and consumers who shop more frequently or are easily enticed by promotions, are bound to overspend.     

Children's influences on in-store purchases

Relatively little is known about the influence children have on their parents’ purchases in a retail setting. This study investigates which factors affect children's purchase requests and their parents’ subsequent purchases. It was found that factors influencing the number of children's purchase requests were the freedom of a child's movements, the product's visibility, and the child's developmental stage. The latter variable together with the suitability of the good for consumption on the premises, the linguistic form of child's request, the parent's household income, and the price of the good determine the number of purchases following a child's request.     

Spontaneous selection: The influence of product and retailing factors on consumer impulse purchases

Our research examines the effect of product characteristics and retailing factors on the likelihood a consumer makes an impulse purchase. We present a framework for understanding the impulse buying process and use it to explain our findings. Our nested logit model uses data from an adult panel of grocery shoppers over three major household grocery shopping trips. The results indicate that product characteristics have a fifty percent greater influence on impulse buying than do retailing factors. Of the three product characteristics investigated, the hedonic nature of the product has the greatest influence on impulse buying. Of the three retail factors, a store environment with a high–low pricing strategy influences impulse buying the most. Our findings suggest that retailers who want to encourage impulse buying behavior utilize promotional activities and merchandising tactics that attract consumers' attention to emotionally appealing products.     

The influence of children on parental purchases during supermarket shopping

Children are assuming larger roles in household consumer decisions and have also emerged as independent consumers, thus forming an increasingly powerful market segment. Children can be seen as forming, first, a primary market; second, as influencers on their parents’ decision making; and third, as potential future adult consumers. The second role is the main focus of this paper, centring on supermarket purchases. Using focus groups and in‐depth interviews, this study explores the influence of children on supermarket shopping. Participants included parents and children of families in Midlothian, Scotland. The results showed that children have a significant influence on supermarket product purchases. The factors which influence children's product preferences are analysed, and their ability to relay their choices to their parents is considered.     

Exploring the incidence and antecedents of buying an FMCG brand and UPC for the first time

Two studies provide estimates of the upper range of incidence of first-time (brand and UPC) purchases, claimed reasons for these new purchases, and consumer profiles of first-time brand buyers. Study 1 analyzes three years of transaction data from 10,000 loyalty card members; Study 2 reports on 510 mall-intercept interviews in two different stores. Despite the vast range of items available in modern supermarkets, new brand purchasing is not particularly common: new brands constitute about 5% of items in a basket and are purchased on about 1/3 of shopping trips. The majority of these new-to-consumer purchases have been prompted by in-store stimuli (noticing new brands, price promotions and stock-outs). Interestingly, demographic characteristics between first-time and existing buyers did not differ. Providing further evidence to the habitual nature of grocery shopping, the results indicate limited opportunities to expand/change consumer repertoires suggesting the need for ongoing marketing activities for FMCGs.     

Impulsive purchasing in grocery shopping: Do the shopping companions matter?

Impulsive purchasing occurs when consumers succumb to urges to make purchases without careful evaluation. Unlike research examining personal factors as the predictors of impulse purchase behavior, our study incorporates internal and external factors by exploring the interpersonal influences of different types of shopping companions. A survey was conducted with 791 participants who indicated the types of companions they accompany when grocery shopping and reported how each type influences their purchase decisions. Results show that parents and spouses are the most common shopping companions and the most influential on the shoppers' impulse purchase decisions compared to other types of companions (e.g., significant others, colleagues, children, friends, and other shoppers). Additionally, the effect of different shopping companions varies based on the shoppers' internal characteristics and the social distance between the shopper and the shopping companion. Finally, while individual factors (e.g., age, gender, income, education, impulsivity, and emotional susceptibility) significantly affect shoppers’ impulse purchase decisions, the magnitude and direction of the effect of these factors differ significantly based on the type of shopping companion.     

Self‐reporting vs. observation: some cautionary examples from parent/child food shopping behaviour

Most studies on decision‐making in relation to consumption are based on self‐reported behaviour. This approach assumes that consumers can account for their decision‐making processes. However, several studies show that consumers are not always aware of what happens when they purchase goods because of the role of habit and routines, or a lack of willingness to account accurately for their purchases. A clear example of this is family decision‐making about food shopping. It is well documented that parents know that their children influence what they buy in supermarkets but it is also found that parents and children do not agree on just how much influence children have. Thus, a gap exists in the knowledge about what is actually happening in this grey zone of grocery shopping which seemingly cannot be solved through retrospective data collection. Family shopping is neither a completely rational nor conscious process, which makes the use of self‐reported behaviour problematic. This study discusses the limits of survey and interview approaches to parents' and children's shopping decisions in comparison with observations. An observational study of parent/child supermarket shopping in Denmark is used to exemplify the strengths of observation. Findings show that both parents and children are juggling a number of roles and apply a range of negotiation strategies which can explain why it is hard to account for who decided what afterwards. The article concludes that mapping certain types of consumer actions calls for other methods than self‐reported behaviour.     

The impact of branding on low‐income adolescents: A vicious cycle?

This study examines the impact of consumerism and consumer culture on low‐income British adolescents. Specifically, it investigates the effects of branding and advertising on the formation of selfconcept clarity (SCC) and consumer susceptibility to interpersonal influence (CSII). A comparative study was conducted between two groups, low‐ and high‐income teenagers, assessing SCC and CSII by means of quantitative scales. It was found that low‐income teenagers are less clear in their self‐concept and are more susceptible to interpersonal influence than their high‐income counterparts. A significant negative correlation between the two scales revealed that the less clear one's self‐concept is, the more susceptible one is to interpersonal influence. It is proposed that an inability to “keep up” with the latest fashion trends (due to restricted consumption opportunities) may result in a damaged self‐concept among low‐income teenagers, which leads to heightened susceptibility to consumption pressures and hence heightens the negative socio‐psychological impacts of living in poverty. The results of the study are reviewed in terms of branding, advertising, and consumer behavior and a proposed conceptual model of branding's impact on low‐income teenagers is presented as a “vicious cycle.” © 2008 Wiley Periodicals, Inc.     

Anglo versus Hispanic Children's Influence on Parental Purchase of Cereal

Children's influence on parental purchases of cereal was investigated by unobtrusively observing 15 pair of Anglo and 15 pair of Hispanic children and their parent(s) in the cereal aisle of Allentown, Pennsylvania grocery stores. Tabulation was kept on whether the child did or did not influence the purchase behavior of their parent(s). It was found that overall, children had a statistically significant influence on their parents' purchase behavior (p < .01). Although a percentage difference existed, there was no statistically significant difference between the Anglo children's influence and the Hispanic children's influence on their parents' purchasing behavior of cereal (p < .05).     

Investigating the consumer–environment interaction through image modelling technologies

Abstract

This study uses an innovative research tool to evaluate the hypothesis of a consumer–environment interaction. A new computer graphics methodology keeps track of the time spent and the number of purchases made during shopping, together with several other behavioural measures. A laboratory experiment uncovered an interaction effect in dwell time and number of purchases between the type of shopping trip (fill-in trip vs. major trip) and the consumers' layout preference. Shoppers taking major trips were more prone to shop in a free-form layout, whereas those taking fill-in trips tended to prefer a grid layout. The article discusses implications for research and practice, identifying areas for future research.     

Sequential market basket analysis

Market basket analysis (MBA) is a powerful and common practice in modern retailing that has some limitations stemming from the fact that it infers purchase sequence from joint-purchasing data. However, internet retailers automatically collect purchase-sequence data from their shoppers, and new technology is available for traditional (bricks and mortar) retailers to do the same, making it possible to analyze purchase sequences, rather than inferring them from joint purchases. This study first compares and contrasts traditional market basket analysis with a sequential extension, and then proposes a framework for purchase-sequence analysis, which is illustrated utilizing shopping trip data from one grocery store.     

The impact of search costs on consumer behavior: A dynamic approach

Prices for grocery items differ across stores and time because of promotion periods. Consumers therefore have an incentive to search for the lowest prices. However, when a product is purchased infrequently, the effort to check the price every shopping trip might outweigh the benefit of spending less. I propose a structural model for storable goods that takes into account inventory holdings and search. The model is estimated using data on laundry detergent purchases. I find search costs play a large role in explaining purchase behavior, with consumers unaware of the price of detergent on 70 % of their shopping trips. Therefore, from the retailer’s point of view raising awareness of a promotion through advertising and displays is important. I also find a promotion for a particular product increases the consumer’s incentive to search. This change in incentives leads to an increase in category traffic, which from the store manager’s perspective is a desirable side effect of the promotion.     

Family life in grocery stores – a study of interaction between adults and children

Today the family is seen as a unit for food choice and consumption. The influence of family members on food choice comprises several stages that can be carried out both in the private home and in the public sphere, such as the grocery store. This makes the grocery store a context in which ordinary family life can be observed. The aim was to study families and the interaction between children and adults in the grocery store, focusing on young people's involvement in food shopping. Hidden observation and family interview methods were used. A total of 338 people were observed in seven different grocery stores in Stockholm during the summer and autumn of 2003. Seven family interviews, involving a total of 29 persons, were conducted in Uppsala in the spring of 2003. In the interviews, parents reported avoiding shopping for food together with children as they experienced it as stressful and exhausting. The observations showed that family life in the grocery store comprises not only the food purchase, but also bringing up children and consumer education. Young people's involvement in the food purchase varied depending on their age and the specific product. The different behaviour observed may be interpreted as reflecting the variation in ways of bringing up children at home. Another conclusion is that a public place such the grocery store facilitates pedagogical situations and can work as a tool for informal education.     

Food for Kids: How Children Influence their Parents Purchasing Decisions

During the last decades, sociological changes have modified the role of children within families: participatory models have become more widespread, to the detriment of more authoritative ones: this change has had consequences also in reference to families’ purchases. In scientific literature some scholars have shown that this influence is real, and marketers try to take advantage of this through a communication style that attempts to “teach” children how to pester their parents: this is the so-called nag factor. To understand which are the parental attitudes toward kids’ food products, a questionnaire has been administered in schools (nursery and primary) to a random sample of parents, representative of a larger sample of kids (200 in all). Findings showed that pestering is a real attitude, in particular among the littlest children. Moreover, these findings reflect in part the reality described by marketing literature: children influence the purchasing decisions of their parents, but this influence decreases when mothers and fathers are more aware of the importance of a quality-based diet.     

The effect of multi-purpose shopping on pricing and location strategy for grocery stores

Though it is a well-accepted fact that consumers indulge in multi-purpose shopping, most previous models of store choice assume that grocery shopping trips are single-purpose trips. This paper provides the first empirical analysis of multi-purpose shopping using data on actual shopping trips. A latent class factor analytic logit model is proposed, which provides a representation of the market structure of grocery store competition, while integrating; multi-purpose shopping, retail pricing format and location strategy. We conclude that incorporating multi-purpose shopping trips provides a better understanding of the competitive market structure, and discuss the managerial implications for the selection of marketing strategies.     

The moderating role of shopping trip type in store satisfaction formation

Consumers may weigh store attributes differently depending on the type of shopping trip. For example, fill-in shoppers likely value convenience, due to the ad-hoc nature and urgency of such trips. However, no study has yet explored the effects of shopping trip types on satisfaction formation. This study investigates how three types of shopping trips — major, regular fill-in, and special fill-in — affect satisfaction formation. Using data for all Dutch grocery chains from 2009–2014, we show that service, price, and convenience are important drivers of satisfaction. We also find that the effects of these drivers on store satisfaction depend on the shopping trip type. Major shoppers, for instance, treat service factors as less important to their satisfaction than other shoppers do. Convenience is a more important driver of satisfaction for regular fill-in shoppers. Price is a more important determinant of satisfaction on fill-in trips related to special occasions like birthdays and family dinners.     

The effects of role strain on the consumer decision process for groceries in single-parent households

Single-parent families are becoming a larger part of American society. But what is known about their decision-making processes? Role strain is of particular interest when studying single parents because of their need to serve multiple family roles otherwise carried out by dual-parent families. In this study, the consumer decision process for single parents is empirically examined in the context of grocery shopping. Role strain was found to have a significant effect on problem recognition style and reactive shopping behaviors. Advertising positively influenced proactive shopping behaviors and had a negative relationship with reactive shopping behaviors. Implications for food retailers are provided.     

Is self-employment really a bad experience? : The effects of previous self-employment on subsequent wage-employment wages

We use propensity score matching methods to quantify the effects of past self-employment experience on subsequent earnings in dependent employment using data on the population of Danish men observed between 1990 and 1996. Our results generally confirm existing studies in that we find that a spell of self-employment is associated with lower hourly wages compared to workers who were consecutively wage-employed. We also show, however, that this effect disappears—and even becomes positive in some settings—for formerly self-employed who find dependent employment in the same sector as their self-employment sector. Hence, the on average negative effect of self-employment is rather caused by sector switching than by the self-employment experience per se. Moreover, formerly self-employed who either enjoyed a high income or hired at least one worker during their self-employment spell receive wages in subsequent dependent employment that are at least as high as for individuals who have been consecutively wage-employed.     

An integrative conceptual framework for analyzing customer satisfaction with shopping trip experiences in grocery retailing

Grocery retailers aim to satisfy customers, and because grocery shopping trips are frequently recurring, they must do so continuously. Surprisingly, little research has addressed satisfaction with individual grocery shopping trips. This article therefore develops a conceptual framework for analyzing customer satisfaction with individual grocery shopping trip experiences within an overall ‘disconfirmation of expectations model’ of customer satisfaction. The contribution of the framework is twofold. First, by focusing on satisfaction with individual grocery shopping trips, previous research on satisfaction is extended to a context marked by frequently recurring, often tedious and routine activities. Understanding what causes satisfaction/dissatisfaction with individual shopping trips is required to explain overall, cumulative satisfaction with a retailer, which has been the focus of prior research on satisfaction in the retailing literature. Second, the framework synthesizes and integrates multiple central concepts from different research streams into a common framework for analyzing shopping trip satisfaction. Propositions are derived regarding the relationships among the different concepts in the framework and suggestions for future research are offered.     

Odd Jobs,Bad Habits,and Ethical Implications: Smoking-Related Outcomes of Children’s Early Employment Intensity

Considerable interest has long existed in two separate phenomena of considerable social interest, namely children’s early exposure to employment outside of any organizational, legislative, or collective bargaining protection, and teenage smoking. We used data from a large national survey to address possible direct and indirect links between children’s early employment intensity and smoking (both intent and history) because of significant long-term implications of the link between work and well-being in a vulnerable population. Fifth to ninth grade children’s (N = 19,018) informal employment intensity (number of odd jobs) was related to both smoking history and smoking intent, and these effects were partially mediated by the amount of weekly spending money and self-esteem. The number of one’s parents and friends who smoke separately moderated the relationships between self-esteem and weekly spending money, and smoking behavior. These findings illustrate the complex consequences of young children’s exposure to early employment, and emphasize the need for research on the ethical implications of pre- and early teenagers who are employed outside of the formal employment context.