Importance of location and product assortment on flea market loyalty

Abstract

ABSTRACTRecent trends in consumerism have highlighted the proliferation of the global flea market economy, which contributes significantly to the growing informal sector. Although a number of studies have explored the present topic within different contexts, few studies have addressed the factors that contribute to flea market loyalty among Millennial consumers. The purpose of the present paper is therefore to investigate the influence of market location and product assortment on market loyalty and the inter-construct relationships of market experience and purchase intention. By means of a quantitative study, 280 self-administered questionnaires were distributed amongst Millennial consumers. The data analysis was done using Structural Equation Modelling (SEM) in SPSS 23 and AMOS 23. The results indicated that all seven proposed hypotheses were significant. In other words, market location, product assortment and market experience positively influence consumer’s purchase intention and market loyalty. This paper is of paramount importance to brands and retailers who wish to expand their distribution network to the informal market economy, also known as the flea market economy. Marketers should realize the importance of the market’s location and the product assortment when investing in the flea market economy. The results of this paper contribute to literature in the informal market economy, which is rapidly expanding.