Drivers of customer satisfaction in the grocery retail industry: A longitudinal analysis across store formats

The design of satisfactory shopping experiences remains one of the main challenges for building long-term profitability in modern retailing. Therefore, companies are interested in identifying the key drivers of the service execution that shape customer shopping satisfaction. In this study, we developed a standardized questionnaire for evaluating the shopping experience, and conducted a large study in several grocery stores across different formats during a time span of five years. The resulting rich dataset enabled us to uncover interesting patterns using both individual and store-level analyses. Our results indicate that larger store formats are associated with greater satisfaction levels. When looking at the marginal effects of the various elements of customer service, we found that some specific elements of service execution present significant differences across store formats. In addition, we identified loss aversion on shopping experience, since poor performance impacts more on customer satisfaction than superior performance. Finally, our store-level analysis sheds light on how changes in the service performance determine changes in the shopping experience in the same store. These implied results may guide store and chain managers to evaluate the role of the store execution elements better, and to design the customer shopping experience successfully.     

The influence of human crowding and store messiness on consumer purchase intention– the role of contamination and scarcity perceptions

The current research explores how store environmental cues – human crowding and store messiness influence consumer purchase intention across two product type (ingestible and non-ingestible). Importantly, the research also examines the mediating role of contamination perception on these effects. Specifically, for ingested products (e.g., eggs), crowded and messy store environments signal contamination and lead to decrease in purchase intention. However, for non-ingested products (e.g., dishwashing liquid), contamination inferences are observed for store messiness but not for human crowding. Further, role of perceived scarcity is examined which suggests that in ingestible product category perception of scarcity can mitigate the negative effect of contamination on purchase intention.     

Calibrating 30 Years of Experimental Research: A Meta-Analysis of the Atmospheric Effects of Music,Scent, and Color

Atmospheric in-store stimuli have been the subject of considerable empirical investigation for over 30 years. This research presents a meta-analysis of 66 studies and 135 effects (N = 15,621) calibrating the atmospheric effects of music, scent, and color on shopping outcomes. At an aggregate level, the results reveal that environments in which music or scent are present yield higher pleasure, satisfaction, and behavioral intention ratings when compared with environments in which such conditions are absent. Warm colors produce higher levels of arousal than cool colors, while cool colors produce higher levels of satisfaction than warm colors. The estimated average strength of these relationships ranged from small to medium. Effect sizes exhibited significant between-study variance, which can be partly explained by the moderators investigated. For instance, larger effect sizes were observed for the relationship between scent and pleasure in those samples with a higher (vs. lower) proportion of females. Data also indicated a tendency toward stronger music and scent effects in service settings as compared to retail settings. The results of this analysis, based on data aggregated across the research stream, offer retailers a guide to enhance customers’ shopping experience through judicious use of in-store atmospheric stimuli.     

Store environment,emotions and approach behaviour: applying environmental aesthetics to retailing

This exploratory study examines the influence of store environment on emotions and behaviour tendencies. The study brings insights from research on external environments to the study of store environment. We combined the idea of three distinct dimensions of emotions (pleasantness, arousal and dominance) and the role of mediating approach-avoidance behaviours with two variables taken from the field of environmental aesthetics – complexity and order. Twenty-four colour photographs of four sections of two grocery stores were rated by a sample of 43 subjects on their degree of complexity and order. A second sample of 87 subjects rated the same photographs on emotions and approach-avoidance tendencies. The relationship between complexity and order and reported pleasantness and arousal was consistent with findings regarding external environments. The three emotional dimensions mediated an inverted ‘U’ relationship between complexity and approach behaviour tendencies, as expected. Order had a positive correlation with approach behaviour tendencies. The study suggests the importance of examining general variables (such as complexity and order) in the context of retail environments and provides ideas for extensive research.     

Does customer sex influence the relationship between perceived quality and share of wallet?

This study examines the within and between sex differences on the relative importances of merchandise quality and interaction quality as drivers of behavioral loyalty (share of wallet). A sample of customers of a national retail chain serves as the study setting. The results indicate that for female customers, interaction quality and merchandise quality have equally strong total influence on share of wallet. For male customers, the total effect of merchandise quality on share of wallet is significantly stronger than the total effect of interaction quality. Across sex comparisons reveal that the total effect of interaction quality on share of wallet is stronger for female customers. However, merchandise quality exerts a stronger total influence on share of wallet for male customers. Implications of the results are discussed and avenues for future research are offered.     

Memory-Based Store Price Judgments: The Role of Knowledge and Shopping Experience

This paper investigates the processes underlying consumers’ memory-based store price judgments. The numerosity heuristic implies that the greater the number of relatively lower priced products at a store that consumers can recall, the lower will be their overall price image of the store. That is, people use the number of recalled low-price products to judge the overall store price image. We show that this expectation holds only for knowledgeable consumers. Instead, less knowledgeable consumers use the ease with which low-price products are recalled (i.e., the availability heuristic) as a cue to make store price judgments. Therefore, the fewer low-price products they recall, the easier their recall task, and the lower their price perceptions of the store.Field studies using different manipulations tested and confirmed these predictions. Managerial implications for retailers are offered. Theoretical implications for behavioral price perceptions, memory-based judgments, and the use of heuristic cues are also discussed.     

Shopping trip value: Do stores and products matter?

Previous research indicates the importance of shopping trip value but recognises that consumers do not shop independent of the environment; both products and stores contribute to overall shopping trip value. This study identifies the impact of product and store value on overall shopping trip value and investigates the interrelationship among their utilitarian and hedonic components. In addition, it proposes a store value scale. The authors find empirically that utilitarian store value and performance-related product value have significant effects on utilitarian shopping trip value, whereas hedonic shopping trip value is influenced most by hedonic store value and emotional product value. In addition, women appear more prone to hedonic shopping trip value yet also utilitarian store value, while men were more attentive to utilitarian product value.     

Determinants of store patronage: The roles of political ideology,consumer and market characteristics

In this study, we investigate the roles of political ideology, demographic characteristics and market environment in determining households' store patronage behavior. We measure two key dimensions of store patronage—store format preference and store loyalty trait—of 23,092 U.S. households using purchase data from Nielsen Homescan panel. We use county-level vote share of the Republican and Democratic parties across three U.S. Presidential elections to measure political ideology. We obtain measures of demographic characteristics and market environment from the Nielsen panel and the U.S. Census Bureau. Using fixed-effect regression models, we find systematic association between political ideology and households’ store patronage. Our findings contribute to the growing literature in marketing on the effects of political ideology on consumer behavior and have important implications for store loyalty programs, cross-selling strategies and store location decisions.     

The effects of dining atmospherics: An extended Mehrabian–Russell model

This study examined the relationships among dining atmospherics, emotional responses, perceived value, and behavioral intentions, using Chinese restaurants as its research setting. Results of the study revealed that dining atmospherics had significant effects on customers’ positive emotions, negative emotions, and perceived value. Further, both positive and negative emotions and perceived value also influenced customers’ post-dining behavioral intentions. Perceived value not only functioned as the greatest contributor to behavioral intentions but also mediated the relationship between emotional responses and behavioral intentions. Positive emotions and negative emotions had asymmetric effects on perceived value. Positive emotions showed a stronger capability in predicting perceived value. Chinese restaurant managers must utilize the effects of restaurant atmospherics to improve customers’ perceived value of the restaurant and their revisit intentions. Other practical implications are discussed as well.     

Store format choice and relationship quality in apparel retail: A study of young and early-middle aged shoppers in New Delhi region

Shopping format choice has been an interesting and important area of research in the academic literature from long time. However, research in this area is presently at a nascent stage in India. There are a very few studies which focus on store format choice in India which includes the works of Anand and Sinha (2009), Prasad and Aryasri (2008), Sinha and Banerjee (2004) and Tripathi and Sinha (2008). The present study compares three different retail formats (Discount stores, Exclusive stores and Multi-brand outlets) based on the shopper's perception of relationship quality (RQ) of these stores using multivariate techniques. For addressing, the objective of this study a sample of 313 shoppers is used. Results suggest that “conflict due to store” and “combined overall RQ due to the store and its employees” influence the store format choice. The RQ levels among the apparel store format are highly competitive.