Retail Formats Research Articles

Identifying the Determinant Dimensions of Shopper Convenience for Online Versus Instore Shopping in the Pre and Post CoVID-19 Eras

Abstract Background: Shopper convenience is a key determinant of why shoppers choose and buy from a particular retail format – online versus instore. However, there are no systematic studies that assess which dimension of shopper convenience is salient for shoppers in online versus instore shopping instore. Further, to the best of our knowledge no study has investigated whether and how these determinant dimensions of shopper convenience have changed with the advent of COVID-19. Method: In this study, 1324 responses of 172 shoppers using the Myers and Alpert (1968) approach were analyzed to identify the determinant dimensions of convenience for online and instore shopping in the pre-COVID-19 era and test their validity in the context of their actual purchase behavior. Later, the study was replicated with the same shoppers in the post-COVID-19 era. Results: The results of the study show that of the four dimensions of convenience, while shopper assessment of “search” convenience was the most important attribute for both online and instore shopping, and “transaction” convenience the most different between the two retail outlets, the determinant dimensions in both retail outlets were “access” and “possession” convenience with instore shopping holding an advantage in possession” convenience and online shopping holding an advantage in “access” convenience. However, in a replication of the study in the post coronavirus era, online shopping outlets were found to have the advantage in both the determinant dimensions of convenience. Conclusion: This study perhaps for the first time show how shopper convenience perceptions have changed in pre and post COVID-19 eras for both instore and online shopping. Recommended Citation Kakar, Ashish and Kakar, Adarsh Kumar (2020) "Identifying the Determinant Dimensions of Shopper Convenience for Online Versus Instore Shopping in the Pre and Post CoVID-19 Eras," Pacific Asia Journal of the Association for Information Systems: Vol. 12: Iss. 4, Article 4. DOI: 10.17705/1pais.12404 Available at: https://aisel.aisnet.org/pajais/vol12/iss4/4

Location and agglomeration factors predicting retailers’ preference for Indian malls

Retail research has emphasized the importance of location in attracting mall traffic. This study focused on Indian mall retailers’ experiences on agglomeration and location strategies employed by malls and their impact on retailers’ decision to take space in the mall. The purpose of the study was to identify mall factors that play a critical role in making the mall an attractive site for renting space by retailers. Retailers seek to set up stores in areas that promise traffic and sales. Thus, it becomes important to understand the retailers’ perspective in deciding to rent space in a mall. Qualitative study was conducted to understand the retailers’ perceptions. Forty in-depth retailer interviews across Indian malls were conducted to understand retailer views on mall location factors. The findings add to the existing literature on retail location and posit that mall agglomeration and locational issues were categorized under factors like the presence of branded stores, catchment area, transport networks, and accessibility. Infrastructural, economic, and technological developments varied across malls located in different parts of the country. Retail location theories need to incorporate the infrastructure issues and attractiveness of the catchment area in explaining mall location strategies in India. Differences in the availability of facilities, services, and retail formats varied across small and big cities and influenced mall traffic.

Buyer power, product assortment and asymmetric retail formats

AbstractWe consider two manufacturers producing two symmetric and independent goods. They sell them through two undifferentiated retailers (homogeneous retailers). Manufacturers propose linear contracts. Before supply contracts are set by producers, retailers decide whether to be a multi‐product retailer by carrying the two goods or a single product retailer and sell only one good. In this symmetric setting, we find asymmetric retail formats in equilibrium, which results in lower total welfare compared to a situation where both retailers would be multi‐product retailers.

Identifying the Determinant Dimensions of Shopper Convenience for Online Versus Instore Shopping in the Pre and Post CoVID-19 Eras

Abstract Background: Shopper convenience is a key determinant of why shoppers choose and buy from a particular retail format – online versus instore. However, there are no systematic studies that assess which dimension of shopper convenience is salient for shoppers in online versus instore shopping instore. Further, to the best of our knowledge no study has investigated whether and how these determinant dimensions of shopper convenience have changed with the advent of COVID-19. Method: In this study, 1324 responses of 172 shoppers using the Myers and Alpert (1968) approach were analyzed to identify the determinant dimensions of convenience for online and instore shopping in the pre-COVID-19 era and test their validity in the context of their actual purchase behavior. Later, the study was replicated with the same shoppers in the post-COVID-19 era. Results: The results of the study show that of the four dimensions of convenience, while shopper assessment of “search” convenience was the most important attribute for both online and instore shopping, and “transaction” convenience the most different between the two retail outlets, the determinant dimensions in both retail outlets were “access” and “possession” convenience with instore shopping holding an advantage in possession” convenience and online shopping holding an advantage in “access” convenience. However, in a replication of the study in the post coronavirus era, online shopping outlets were found to have the advantage in both the determinant dimensions of convenience. Conclusion: This study perhaps for the first time show how shopper convenience perceptions have changed in pre and post COVID-19 eras for both instore and online shopping.

THE FEATURES OF MARKETING ACTIVITY OF THE CHINA'S SNACK FOOD COMPANIES

As a result of the study, the authors analyzed the historical development and current trends in the activities of snack producers in China. The authors have identified four stages of development of the industry, which demonstrates the tendency to increase production in accordance with changes in food preferences of the population. The authors presented and analyzed in detail the main features of the marketing activities of Chinese companies, which produce snacks, such as the continued expansion of the market, strong competition from both domestic producers and foreign producers, significant differentiation tastes of consumers on a regional basis, the high level of diversification of retail formats and so on. The article notes that the Chinese company is constantly trying to expand its market share of snacks, as well as increased investment in innovative investment products, the management of marketing activities, supply chain management, creating effective marketing network, brand support and more. It was prove that the main consumers of snacks in the country are young people. Therefore, companies operating in this market are constantly working to ensure that their products are not only commercially successful, but also meet quality standards and food safety and do not worsen the health of the nation. It is determined that the production of snacks in China belongs to an industry whose turnover rate is very high. The effectiveness of logistics support to some extent determines the competitiveness of the snack market. As a result, China's logistics industry has grown rapidly over the past few years. The authors conducted a PEST analysis of the snack industry by Chinese enterprises. Among the main factors that positively affect this industry are significant political and economic support from the state, constantly growing market volumes, significant potential for product consumption, and the possibility of simultaneous use of online and offline trade and so on. The article also contains SWOT analysis based on data from one of the largest Chinese companies producing snacks and substantiated opportunities and threats that must be taken into account during developing an effective marketing strategy for the future.

Adherence to Dietary Recommendations and Food Retail Market Structure: Is There a Connection?

Abstract We pair IRI household purchase records with Nielsen TDLinx data on the retail food environment to investigate the associations between retail market structure and Americans’ adherence to the Dietary Guidelines. We focus specifically on fruit and vegetable consumption, as proxied by purchases. Controlling for various household characteristics, we find that increased market concentration is associated with lower produce consumption and weaker adherence to recommendations. We also find a number of small but significant associations with respect to the presence of nontraditional retail formats.

Millennials’ Intention to Use Self-Checkout Technology in Different Fashion Retail Formats: Perceived Benefits and Risks

With an increase in automation, fashion retailers started to offer a self-checkout option in their stores to meet diverse consumers’ demand. Self-checkout technology has great potential to enhance the shopping experience of millennials, who increasingly dominate the market with increasing buying power, placing convenience as their top priority in the shopping process. However, despite the potential, it is unclear what drives and inhibits millennials to use self-checkout in the fashion retail context. Therefore, the aim of this study is to examine millennials’ intention to use self-checkout in the fashion retail environment with regard to their perceptions of benefits and risks. Data were collected from 352 millennials through an online survey. Perceived benefits and risks identified in this study are the key antecedents of the intention to use self-checkout in the fashion retail stores. Also, individuals who have a low need for human interaction are more likely to use self-checkout.

Exploring the main drivers influencing brand loyalty to motorway services areas in Italy

Due to the emergence of new shopping trends in alternative retailing formats, the paper aims at exploring the role of assortment levers to increase customer loyalty to the retailer’s brand in an on-the-go retailing format, such as motorway service areas (MSAs). Specifically, the paper investigates how the grocery assortment perception (GAP) of MSAs influences shopping satisfaction and shopping enjoyment, generating customer loyalty to the MSA. A mobility proxy, measured in terms of the number of kilometres driven in a month, was included as an antecedent of consumers’ loyalty to MSAs. Survey data were collected from 526 respondents during their stop in three MSAs. The covariance-based structural equation model was computed to estimate the direct and indirect effects. The findings show that the perception of assortment is a significant driver of loyalty to the MSA retailing format. Most remarkably, the results show a positive relationship between the customer’s mobility and his/her loyalty to the MSA brand. The paper focuses on an emerging, although poorly investigated retail context, MSA, in which companies are enlarging the grocery assortment to offer the opportunity to shop during the consumption. Implications in terms of competition between incumbent grocery retailers and companies operating MSAs are derived. Moreover, a new conceptualisation of consumers’ mobility in influencing the retailer’s brand loyalty is prosed when shoppers are on-the-go.

Optimal Category Mix in Multi-Category Retailing – Insights from an Experiment

In brick-and-mortar retailing format, retailers need to ensure minimum level of inventorydisplayed at each store for each category irrespective of the revenue or profit generated by aparticular category. It is observed that majority of bricks-and-mortar retailers in India assume;(a) existing category mix is ideal for their stores, (b) any modification in the existing categorymix could possibly lead to loss of sale of an existing category, (c) it is preferred to havecategories generating higher average transaction values and most importantly,(d) categorieswith lower average selling price products and generating lower average transaction valuesnegatively impact store’s revenue. Such assumptions and widely followed practice havecreated a predisposition and mindset in store managers and they believe that, their storedelivers revenue and profit to the best of its potential with the existing category mix. In thisresearch, we have analysed the existing category mix of a select retailer, attempted to alter theexisting category mix through an experiment and evaluated change in (a) category levelprofitability, and (b) overall store profitability.

Optimal Category Mix in Multi-Category Retailing – Insights from an Experiment

In brick-and-mortar retailing format, retailers need to ensure minimum level of inventory displayed at each store for each category irrespective of the revenue or profit generated by a particular category. It is observed that majority of bricks-and-mortar retailers in India assume; (a) existing category mix is ideal for their stores, (b) any modification in the existing category mix could possibly lead to loss of sale of an existing category, (c) it is preferred to have categories generating higher average transaction values and most importantly, (d) categories with lower average selling price products and generating lower average transaction values negatively impact store’s revenue. Such assumptions and widely followed practice have created a predisposition and mindset in store managers and they believe that, their store delivers revenue and profit to the best of its potential with the existing category mix. In this research, we have analysed the existing category mix of a select retailer, attempted to alter the existing category mix through an experiment and evaluated change in: (a) category level profitability, and (b) overall store profitability.

Impact of Store Size Reduction on Overall Store Performance – Insights from an Experiment

Majority of brick-and-mortar retailers in India assume that (a) existing store size is ideal totheir retailing format, (b) inventory display density per square foot is optimal, (c) larger thestore size higher the consumer walk-ins, (d) more premium the store location more premiumthe perceived retail store brand positioning in consumers mind, (e) larger the store size higherthe store revenue and most importantly, (f) store revenue reduces in proportion to reduction instore size. Such assumptions and widely followed practice have resulted in increasing pressureon store operating costs for many years. Brick-and-mortar retailers need to understand theimportance of store rent and its implications on the overall store profitability to achieve asustainable store level profit and to achieve this they need to rationalize stores size onconsistent basis. In this research, we have analysed the existing store size across locations ofa select retailer in relation to overall store profitability, selected few loss making stores;especially the ones which are delivering losses owing to higher rent and larger store size,reduced these stores size without compromising the consumer experience aspect, evaluatedthe overall store performance over a period of eleven months to understand the changes in (a)consumer walk-ins, (b) store revenue, and (c) overall store profitability.

Impact of Store Size Reduction on Overall Store Performance – Insights from an Experiment

Majority of brick-and-mortar retailers in India assume that (a) existing store size is ideal totheir retailing format, (b) inventory display density per square foot is optimal, (c) larger thestore size higher the consumer walk-ins, (d) more premium the store location more premiumthe perceived retail store brand positioning in consumers mind, (e) larger the store size higherthe store revenue and most importantly, (f) store revenue reduces in proportion to reduction instore size. Such assumptions and widely followed practice have resulted in increasing pressureon store operating costs for many years. Brick-and-mortar retailers need to understand theimportance of store rent and its implications on the overall store profitability to achieve asustainable store level profit and to achieve this they need to rationalize stores size onconsistent basis. In this research, we have analysed the existing store size across locations ofa select retailer in relation to overall store profitability, selected few loss making stores;especially the ones which are delivering losses owing to higher rent and larger store size,reduced these stores size without compromising the consumer experience aspect, evaluatedthe overall store performance over a period of eleven months to understand the changes in (a)consumer walk-ins, (b) store revenue, and (c) overall store profitability.

Markets and Spillover Effects of Political Institutions in Promoting Women’s Empowerment: Evidence From India

This study presents fresh evidence that market interventions aimed at empowering women are more effective in the presence of formal political institutions, using the case of political reservations for women in Indian local governments. It uses data from 2,423 households in 100 Indian villages and accounts for endogeneity through the instrumental variable method to investigate women engaged in the Indian dairy sector following the implementation of India’s National Dairy Plan, which seeks to connect women with formal retail markets. Results suggest that while markets provide “passive” forms of agency to women, political representation can transition this to “active” forms of agency, allowing women to exhibit purposeful behavior. However, spillover effects of reservations (quotas) do not contribute significantly to women’s intrahousehold agency since they continue to depend on male counterparts for routine and intermittent decisions. Additionally, in community matters, the cumulative effect of reservations is more pronounced than standalone market impacts. HIGHLIGHTS Development interventions aimed at connecting women with labor markets have limited, short-term impacts on women’s agency because the ability of women to influence household decisions often depends on their social backgrounds. While the link between economic empowerment and development is weak, changes in social structures can promote women’s greater participation in decision making. Provisions in India’s 73rd Constitutional Amendment that propose political quotas for women in Indian local governments have helped loosen patriarchal social structures. Funding agencies and development organizations can generate larger and long-term empowerment outcomes for women by mounting market interventions in combination with more gender-inclusive formal political institutions.

Integrated Discounting Framework for Indian Brick-and-Mortar Retailers

Since the time online retailing format started getting consumer acceptance in India, consumers now have wider options available for them to buy a product at a discounted price and notably, as online stores in India are following the product discounting as one of the key drivers for consumer acquisition, consumers’ perspective towards discount at Brick-and-mortar store has changed. This change in consumers’ perspective has put the majority of Brick-and-mortar retailers in India into a quandary and they are losing out their market share slowly to online retailers. From the existing literature we have found many discounting frameworks suggested by researchers, but they are all isolated for specific contexts and leave it to retailers to create their own discounting frameworks. In this work, we have attempted to create an integrated discounting framework for Indian brickand-mortar retailers by carrying out multiple experiments with different manipulations and under different contexts along with taking clues from past research findings, insights and suggestions along with testing validity and reliability of the proposed framework in the field.

Integrated Inventory Management Control Framework

The concept of minimum display quantity (MDQ) is unavoidable in brick-and-mortar retailing format owing to which, retailers need to ensure a minimum level of inventory displayed at each store irrespective of the revenue or inventory turns generated by a particular store. It is observed that majority of bricks-and-mortar retailers in India assume;(a) existing inventory management system is ideal to their store, (b) software solutions record accurate inventory movement, (c) involving store management team in inventory related decision making is risky/biased and most importantly (d) loss of sale due to stockouts is inevitable. Such assumptions and widely followed practice have created a predisposition and mindset in store managers and they believe that their store delivers revenue and profit to the best of its potential with the inventory which is made available to them through existing inventory management system and we cannot avoid a number of instances consumers are unsatisfied due to stockout situations. In this research, we have analysed the existing decision-making process and control systems related to inventory management of a select retailer, attempted to design a new framework and applied the same through an experiment to evaluate the change in (a) overall store profitability and (b) inventory related key performance indicators.

Integrated Discounting Framework for Indian Brick-and-Mortar Retailers

Since the time online retailing format started getting consumer acceptance in India, consumers now have wider options available for them to buy a product at a discounted price and notably, as online stores in India are following the product discounting as one of the key drivers for consumer acquisition, consumers’ perspective towards discount at Brick-and-mortar store has changed. This change in consumers’ perspective has put the majority of Brick-and-mortar retailers in India into a quandary and they are losing out their market share slowly to online retailers. From the existing literature we have found many discounting frameworks suggested by researchers, but they are all isolated for specific contexts and leave it to retailers to create their own discounting frameworks. In this work, we have attempted to create an integrated discounting framework for Indian brick-and-mortar retailers by carrying out multiple experiments with different manipulations and under different contexts along with taking clues from past research findings, insights and suggestions along with testing validity and reliability of the proposed framework in the field.

Integrated Inventory Management Control Framework

The concept of minimum display quantity (MDQ) is unavoidable in brick-and-mortar retailing format owing to which, retailers need to ensure a minimum level of inventory displayed at each store irrespective of the revenue or inventory turns generated by a particular store. It is observed that majority of bricks-and-mortar retailers in India assume; (a) existing inventory management system is ideal to their store, (b) software solutions record accurate inventory movement, (c) involving store management team in inventory related decision making is risky/biased and most importantly, (d) loss of sale due to stockouts is inevitable. Such assumptions and widely followed practice have created a predisposition and mindset in store managers and they believe that their store delivers revenue and profit to the best of its potential with the inventory which is made available to them through existing inventory management system and we cannot avoid a number of instances consumers are unsatisfied due to stockout situations. In this research, we have analysed the existing decision-making process and control systems related to inventory management of a select retailer, attempted to design a new framework and applied the same through an experiment to evaluate the change in (a) overall store profitability, and (b) inventory related key performance indicators.

Short-Term Discounting Frameworks: Insights from Multiple Experiments

Ever since the online retailing format has emerged in India, consumers now have wider options available for them to buy a product at a discounted price and notably, as online stores in India are following the product discounting as one of the key drivers for consumer acquisition, consumers’ perspective towards discount at brick-and-mortar store has changed. This change in consumers’ perspective has put the majority of brick-and-mortar retailers in India into a quandary and they are losing out their market share slowly to online retailers. In this research which is based on recommendations of empirical research previously carried out on the impact of changes in retailer and consumer perspective towards discount postemergence of online stores in India, we have carried out multiple experiments on multiple short-term discounting frameworks to investigate and recommend brick-and-mortar retailer son ideal (a) frameworks, (b) duration, (c) types, (d) assortment coverage, and (e) advertising techniques for short-term discounting strategies to enable brick-and-mortar retailers to design appropriate sales promotions to gain a competitive advantage over online retailing on the discount component.

Long-Term Discounting Frameworks: Insights from Multiple Experiments

Ever since the online retailing format has emerged in India, consumers now have wider options available for them to buy a product at a discounted price and notably, as online stores in India are following the product discounting as one of the key drivers for consumer acquisition, consumers’ perspective towards discount at brick-and-mortar store has changed.This change in consumers’ perspective has put the majority of brick-and-mortar retailers in India into a quandary and they are losing out their market share slowly to online retailers. In this research which is based on recommendations of empirical research previously carried out on the impact of changes in retailer and consumer perspective towards discount post emergence of online stores in India, we have carried out multiple experiments on multiple long-term discounting frameworks to investigate and recommend brick-and-mortar retailers on ideal(a) frameworks, (b) duration, (c) types, (d) assortment coverage, and (e) advertising techniques for long-term discounting strategies to enable brick-and-mortar retailers to design appropriate sales promotions to gain a competitive advantage over online retailing on the discount component.

Changes in Consumer Perspective towards Discount at Brick-and-Mortar Stores owing to Emergence of Online Store Format in India

End-of-season sale (EOSS) has been one of the most important long duration sales promotion/discounting events for brick-and-mortar retailers and consumers in India. But, ever since the online retailing format has emerged in India, consumers now have wider options available for them to buy a product at a discounted price and notably, as online stores in India are following the product discounting as one of the key drivers for consumer acquisition, consumers’ perspective towards discount at brick-and-mortar store is expected to have changed. This change in consumers’ perspective has put the majority of brick-and-mortar retailers in India into a quandary and they are losing out their market share slowly to online retailers. In this research, authors have attempted to investigate; (a) proof, (b) pattern, (c) magnitude, (d) significance and (e) impact of this change in perspective towards discount across stakeholders and transpired the research outcomes into suggestions to enable brick-and-mortar retailers to design appropriate sales promotions.