The influence of Perceived Hypermarket Size on Perceived Hypermarket Reputation, Trust and Customer Willingness to Purchase in South Africa

Richard Chinomona

doi:10.22610/jebs.v7i4(j).594

Abstract

While a remarkable increase in research focusing customer purchase intentions in the retailing industry is noticeable, there is a dearth of studies that have investigated the influence of hypermarket size on customer perceived hypermarket reputation, trust in hypermarket and customer willingness to purchase in the African retailing context. This study used a sample 151 consumers in the Vanderbijlpark town in South Africa to examine these relationships. The results indicate that the proposed five hypotheses are positively supported in a significant way. A discussion of the academic and managerial implications of the results is provided and future research directions are suggested.

Highlights

As an emerging economy, South Africa’s retailing industry has recently witnessed an increase of hypermarkets
Structural Equation Modelling (SEM) Approach: A structural equation modelling approach was used as a data analysis approach
A significant academic contribution is made to the existing service and retailing literature by exploring the influence of perceived hypermarket size on perceived hypermarket reputation, trust and customer willingness to purchase in South Africa

Summary

Introduction

South Africa’s retailing industry has recently witnessed an increase of hypermarkets. While hypermarkets have been in existence in South Africa for quite a while, the past decade has seen a remarkable shift from convenience stores investment to hypermarkets investment (Neven, Reardon, Chege & Wang, 2006; Farhangmehr, Marques & Silva, 2001; Paswan, Pineda & Ramirez, 2010). This phenomenal shift is beginning to attract the attention of more prospective investors and scholars alike (Barros, 2006). Instead of focusing more on the influence of store size on customer behavioural outcomes, the bulk of the retailing studies seem to have put more focus on hypermarkets’ negative effects on convenient stores market and customer characteristics (e.g. Paswan et al, 2010; Wong & Dean, 2009:125; Lee, Chang & Lui, 2010; Hino, 2010:63; Martinez-Ruiz, Jimenez-Zarco & Izuierdo-Yusta, 2010; Farhangmehr et al, 2001).Besides, most of these studies happen to be from either Europe, the USA or Asia

Objectives

Methods

Results

Discussion

Conclusion