Segmentation Correlates for Small Grocery Chain Preference

Abstract

Five benefit segments are identified for grocery patrons. They include: (1) “Customer Service Seeker,” (2) “Specials' Seeker,” (3) “Take-Home Foods and Modern Store Seeker,” (4) “Low Price Seeker,” and (5) “Small Store Seeker.” The key findings are: (1) large grocery chain patrons compared to small chain patrons stress more the importance of low prices while (2) the small chain patrons compared to large chain patrons stress more the importance of service quality attributes and other non-price criteria. Managerial recommendations are also presented for small grocery chain owners.