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.     

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.     

The Impact of the Multi-channel Retail Mix on Online Store Choice: Does Online Experience Matter?

More and more grocery retailers are becoming multi-channel retailers, as they are opening an online alternative next to their traditional offline supermarkets. While the number of multi-channel grocery shoppers is also expanding at a fast growth rate, there are still large differences in online shopping frequency, and as a result, in the levels of experience with buying in the online grocery channel. This study wants to (i) identify the underlying drivers of online store choice and (ii) explore if and how these drivers change when multi-channel shoppers gain online grocery shopping experience. We investigate this question with an online store choice model using purchase data of an extensive UK household panel over a two-year period, covering all multi-channel retailers in the grocery market. Our results show that multi-channel shoppers, at the start of online grocery shopping, tend to select the online store belonging to the same chain as their preferred offline store, especially when the online store is strongly integrated with the offline store in terms of assortment. When online grocery shopping experience increases, multi-channel shoppers’ focus shifts from a comparison within a chain across channels to a comparison across chains within the online channel, resulting in an increasing importance of online assortment attractiveness and online loyalty when choosing an online store.     

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

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

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.     

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.     

Factors that influence manufacturer and store brand behavioral loyalty

This study examines the factors that are linked to consumer goods brands having unusually high or low behavioral loyalty, after controlling for the association between brand size and loyalty that occurs due to the ‘double jeopardy’ effect. Behavioral, or repeat-purchase loyalty is measured as the brand's average share of category requirements (in volume) among its buyers over a 12-month period. We examine a range of factors that theory or past evidence suggests are associated with higher or lower behavioral loyalty, including brand type (store brand/manufacturer brand), price level, promotion intensity, as well as average brand volume per occasion and pack size. Using extensive US panel purchasing data, we find that store brands exhibit relatively higher behavioral loyalty than manufacturer brands. We explain the theory behind this result. We also find that the brand's average pack size and volume bought per occasion has a markedly positive association with behavioral loyalty. Finally, we find that the effect of low price on excess loyalty is moderated via a positive association with average volume purchase per occasion. These findings add to the body of knowledge relating to patterns in behavioral brand loyalty for both manufacturer and store brands, as well as the marketing-mix factors that influence it.     

The influence of price and brand loyalty on store brands versus national brands

Abstract

This article investigates how price and brand loyalty of three frequently purchased product categories can influence the purchase decision process of store brands versus national brands. A multinomial logit model was constructed to analyse the data obtained from a consumer panel. The results confirmed that brand loyalty is the main variable which influences the purchase decision process of both national and store brands. The influence of price on the purchase decision process is product specific. There is a clear distinction between the buyer's profile of store brands and national brands. But there is no evidence of any correlation between demographic variables and national brands or store brands.     

Modelling consumer responses to an apparel store brand: Store image as a risk reducer

To make informed private label (PL) strategy decisions, retailers must understand the factors influencing consumer's brand choices. Previous PL studies have investigated grocery products, and ignored unique features of different types of own brands. We investigate attitudes towards buying a retailer-endorsed brand, or store brand (SB), in apparel retailing. Customers of a Finnish department store were surveyed. Data were analysed using Structural Equation Modelling (SEM). Perceived value and quality of SB apparel appear to be the main drivers of purchase intentions. Perceived risk reduces SB value and purchase intentions. Store image affects purchase intentions indirectly, by reducing perceived risk and increasing SB quality perceptions.     

The impact of brand equity and the hedonic level of products on consumer stock-out reactions

We investigate the impact of brand equity and the hedonic level of the product on consumer stock-out responses. We also examine whether the hedonic level of the product moderates the effect of brand equity. Using a sample of Dutch consumers divided over eight product groups and eight retail chains, we tested our hypotheses and found that consumers were more loyal to high-equity brands than to low-equity brands in the case of a stock-out situation. In hedonic product groups, consumers were more likely to switch to another store. Purchasers of high-equity brands in hedonic product groups were, compared to purchasers of high-equity brands in utilitarian product groups, less inclined to postpone the purchase but were more likely to switch to another item by that brand. In addition to these two main variables, we also investigate the effect of variables from prior research and some new variables, such as stockpiling and impulse buying. Finally, we discuss the theoretical and managerial implications of the findings.     

The influence of college students' shopping orientations and gender differences on online information searches and purchase behaviours

Using the data collected from a survey of 1277 US college students, this study investigated college students' shopping orientations, and examined the relationships between their shopping orientations and searches for information about and purchases of apparel products online and the differences between male and female students in their shopping orientations, online information searches and purchase experiences. Seven shopping orientation constructs were identified: shopping enjoyment, brand/fashion consciousness, price consciousness, shopping confidence, convenience/time consciousness, in‐home shopping tendency and brand/store loyalty. Results showed that participants' shopping orientations were significantly related to their searches for information about and purchases of apparel items online. In addition, male and female participants showed significant differences in their shopping orientations, online information searches and purchase experiences. This study provided suggestions for apparel e‐tailors to develop effective marketing strategies to reach their target market, for consumer educators and for educators in the retail merchandizing area to prepare their students for future careers.     

Identifying factors affecting consumers purchase incidence at retail trade shows

The purpose of this article is to examine variables influencing purchase incidences at retail trade shows. To this end, retailer and consumer related antecedent variables are proposed. The retailer related variables are represented by store environmental cues of sales staff services, store atmosphere and product assortment. The consumer related variables are represented by impulse buying tendency and perceived time pressure. Drawing on relevant literature, hypotheses are developed to link each of these variables to purchase incidence. Data were collected using questionnaire from shoppers (N=95) at a large retail trade show. The hypotheses were tested using partial least square path modeling. The findings indicate that consumers’ favorable evaluation of retailers’ sales staff services, store atmosphere and product assortment led to more purchase incidences. The findings about the consumer related variables indicate that impulse buying tendency led to more purchase incidences whereas perceived time pressure led to fewer purchase incidences. Drawing on these results, several implications for practice and research are suggested.     

Understanding the impact of store flyers on purchase behaviour: An empirical analysis in the context of Spanish households

The purpose of this paper is to analyse how Spanish consumers are really influenced by store flyers. The present study examines decisions of households regarding: (i) incidence (using a binary logit model); (ii) brand choice (using a multinomial logit model); and (iii) quantity (using a Poisson model). The models described above are applied to scanner choice datasets of the purchases made by Spanish households in two product categories (olive oil and coffee) over 53 weeks. The study finds that the main effect of such flyers is brand switching, rather than acceleration or stockpiling. However, consumers are not homogeneous in these responses to store flyers. Price sensitivity is found to be a more important driver of flyer-proneness than brand loyalty; moreover, the study finds a strong relationship between price-sensitive, flyer-prone consumers and decisions on incidence, choice, and purchase quantities. In contrast, the influence of the presence of brands in store flyers on incidence of purchases is not more prevalent among brand-loyal consumers than among non-brand-loyal consumer; however, such flyers are able to induce loyal users to stock up on their preferred brand. The managerial implications underline that manufacturers and retailers should be aware that the inclusion of a brand in store flyers (without necessarily offering a price discount) can simultaneously cut promotional costs and increase sales profits. In addition, managers should use other types of promotions (such as in-store displays) to encourage consumers to stock up on the brand.     

Segmentation of Malaysian shoppers by store choice behaviour in their purchase of fresh meat and fresh produce

Differences in retail store choice behaviour are examined for the purchase of fresh meat and fresh fruit and vegetables in Malaysia. In purchasing fresh meat, cluster analysis identified two groups of respondents who purchased the majority of the fresh meat they consumed from either modern retail stores or the traditional market. However, with regard to the purchase of fresh fruit and vegetables, cluster analysis identified three groups of respondents (modern retail shoppers, transient shoppers and traditional market shoppers). Although the clusters were labelled using similar terms, several similarities and differences were identified in the respective clusters for each food item. The findings indicate that store choice preference was based on the food product that the consumer intended to purchase.     

A nested logit model of brand choice incorporating variety-seeking and marketing-mix variables

We model the effects of variety-seeking and marketing-mix variables on consumers' purchases of coffee using a nested logit model. We premise that on any given purchase occasion, the utilities of brands other than the one purchased on the previous occasion may be correlated due to the consumer's tendency to seek variety or to avoid variety. This results in a two-level hierarchical model where choice on any purchase occasion is conditioned on the brand purchased on the immediately preceding occasion. Such a structure accounts for variety seeking and inertia tendencies of consumers and is consistent with a hierarchical decision process, where consumers first decide whether or not to make a repeat purchase and then decide which brand size to purchase. The assumed hierarchical structure is shown to be consistent with observed coffee purchase behavior, and the model is shown to outperform a nonhierarchical logit model in predicting consumers' brand choices.     

UK mid-market department stores: Is fashion product assortment one key to regaining competitive advantage?

This paper investigates consumer's attitudes towards fashion product assortment in UK mid-market department stores. It aims to determine whether changes to assortment will increase purchase intention and help regain competitive advantage through aligning customer perceptions of product quality and fit with brand image. Our findings challenge the traditional role of the department store in curating fashion assortment. We find that increases in perceived quality, perceptions of brand portfolio and brand fit will increase the purchase intention of UK mid-market department store consumers, whilst reduced assortment sizes would lead to a decrease in purchase intent.     

Customer choices of manufacturer versus retailer brands in alternative price and usage contexts

This article offers a context-dependent theory of how price changes influence consumer purchase choice for fast moving consumer goods (FMCGs) for manufacturer (large household share) and retailer (small household share) brands. The theory proposes that the influence of price on demand is systematically very sensitive to context effects; more specifically, the theory includes the hypothesis that elasticity is much greater when the price change results in the manufacturer and retailer brands having the same price compared to when the price change keeps the manufacturer brand price above the retailer brand price. The implicit and/or explicit association with higher quality with the manufacturer versus retailer brand may be the main reason for buying the higher priced manufacturer brand. Decreasing the price of the manufacturer brand to equal the retailer brand's price takes away the primary reason for buying the retailer brand (i.e., saving money); increasing the price of the retailer brand to equal the manufacturer brand's price has the same effect. The empirical findings in the studies that this article reports support the hypothesis and confirm Scriven and Ehrenberg's [2004. Consistent consumer responses to price changes. Australas. Mark. J. 12(3), 21–39] major conclusion that relative order of price is more important than relative distance.     

Income and time pressure: a person-situation grocery retail typology

A person-situation segmentation framework is proposed. The demographic variable 'income' and the situational variable 'time pressure' were integrated and applied to grocery retail shopping. Using a combination of individual scanning data and a mail survey, we divided a sample of moderate to frequent grocery shoppers in a large Belgian retail organization into four grocery-shopping segments - 'money-poor, time-rich', 'money-poor, time-poor', 'money-rich, time-rich' and 'money-rich, time-poor'. Significant differences existed between these segments in several demographic, behavioural and attitudinal characteristics, including: demographic - age, composition and size of household, number of children at home, marital status, location, education and occupation; behavioural - amount spent in the store, buying pattern for different product categories and different task definitions; attitudinal - overall attitude towards grocery shopping and different grocery-shopping attribute saliences.     

The interaction of retail density and music tempo: Effects on shopper responses

Research examining the effects of store environment on shoppers has found that a number of atmospheric cues have significant effects on shoppers' cognitive, affective, and behavioral responses. To date, retail atmospheric cues have been studied in isolation, instead of simultaneously, like they occur in the retail setting. This study examines the interactive effects of two atmospheric cues—retail density and music tempo—and their impact on shopper responses within a real shopping environment. Based on the schema incongruity model, it is found that shopper hedonic and utilitarian evaluations of the shopping experience are highest under conditions of slow music/high density and fast music/low density. Significant main effects of music tempo are found for behavioral responses such as approach/avoidance tendency and extent of browsing behavior. The results underscore the need to examine interactive effects of atmospheric cues to better understand the impact of the store environment on shoppers. © 2005 Wiley Periodicals, Inc.