Antecedents of rural and urban consumers' propensity to outshop and product specific outshopping behaviour

Abstract

Retail sector survives in the face of severe competition caused especially by outshopping activity. Outshopping involves residents—urban or rural—of one area travelling to another area, usually larger retail developments, to buy goods. This practice is of special concern to retailers particularly when consumers outshop even if the product is available locally. This study aims to understand how psychographics influence the propensity to outshop among urban and rural consumers, and more specifically to find out which products they purchase. It analyzes a quota sample of 298 usable responses from urban and rural areas of northern Gujarat. A structured questionnaire was administered through survey approach. From an exploratory analysis, six factors were extracted and regressed with a propensity to outshop among consumers, followed by the analysis of variance to determine which products were outshopped by consumers. The study demonstrates that rural consumers’ propensity to outshop is influenced by factors such as outlet prone, local involvement, and time saving opinions, urban consumers’ propensity to outshop is influenced by travelling oriented, outshopping interests, and time saving opinions. Additionally, rural consumers outshop for sports goods and flooring materials, while urban consumers outshop for children's clothing and fancy items for women’s use. This study can help retailers to tailor-make their communication strategies for rural and urban consumers. In addition, it can contribute significantly in understanding the retail flow for specific product categories, which in turn, can help retailers in designing marketing mix strategies for expanding their customer base.