Behavior Of Retailers Research Articles

Consumers going online for big‐box retailers: Exploring the role of feeling disconnected during a pandemic

AbstractDrawing from the theories of protection motivation (PMT) and the technology acceptance model (TAM), this study aims to understand the role of psychological distress (i.e., feeling disconnected) in retail consumer's attitude and behavior toward online shopping during COVID‐19 pandemic. An analysis of the data set collected from an online survey (n = 839) shows that the experience of online shopping at big‐box retailers during a pandemic provides not only a novel experience for consumers (i.e., the TAM perspective) but also a coping mechanism to mitigate the risk of infection (i.e., the PMT perspective). The result indicates that the experience (i.e., utility and enjoyment) of online shopping positively influenced consumer attitudes toward it while protection motivation (i.e., severity, self and response efficacy) also has positive effects on the attitude. Furthermore, feeling disconnected (i.e., less connected/more connected/no difference) moderated the effects on consumers’ attitudes to the online service. The study finds that the experience of online shopping at big‐box retailers during a pandemic provides an implication that consumers’ hedonic and utilitarian values and their protection motivations cater to the social and psychological condition within the extended theoretical framework.

Need for Speed: The Impact of In-Process Delays on Customer Behavior in Online Retail

Online retail has become more prominent around the world in the last decade. As a result, online retailers' website performance is increasingly important. Previous literature has extensively studied customer sensitivity to service speed and wait times in offline services. In “Need for Speed: The Impact of In-Process Delays on Customer Behavior in Online Retail,” Gallino, Karacaoglu, and Moreno extend this literature to online retail. They study the impact of delays in online retail on customer behavior. They estimate sizable negative effects of website slowdowns on online sales and conversion rates. Moreover, they explore how customer sensitivity to online delays varies throughout customers' shopping journeys. They find that the impact of waiting times varies along the different stages of the shopping journey, with customers becoming more sensitive to slowdowns at the checkout stage. Their findings have implications for website design decisions. This research is especially relevant in the current regulatory environment with ongoing policy debates about net neutrality.

Pricing Problem in the E-Commerce Low-Carbon Supply Chain under Asymmetric Fairness Preferences

Given the different fairness preferences of online retailers and their investment in emission reduction and revenue sharing with manufacturers, an e-commerce low-carbon supply chain decision model was established using Stackelberg game theory under three circumstances: no fairness preference, symmetric fairness preferences, and asymmetric fairness preferences. Results reveal that the asymmetric fairness preference behaviors of online retailers weaken the manufacturers’ profits, where the online retailer’s utility is negatively correlated with its asymmetric fairness preference coefficient. The real fairness preference coefficient of the online retailer estimated by the manufacturer is negatively correlated with the manufacturer’s wholesale price and carbon emission reduction. The revenue sharing proportion of the manufacturer presents a positive correlation with its wholesale price but shows no correlation with the retail price, the green degree, or the supply chain profit. Within a feasible region, the proportion of the online retailer’s investment in emission reduction is positively correlated with the manufacturer’s profit, the online retailer’s utility, the total utility of the supply chain, the carbon emission reduction, the product’s retail price, and the product’s wholesale price.

The impact of customised mobile marketing on passenger shopping behaviour in the airport terminal

With growing popularity of mobile devices, digital marketing strategies are increasingly important for modern airports. This paper studied context-aware mobile marketing strategies in the airport retail environment. An on-site mobile marketing experiment was conducted at a partner airport to explore how preference and/or location-based mobile coupons could affect passengers’ retail behaviour. Results show that retail shopping became more efficient (less browsing time) with mobile marketing influence, but not necessarily more effective (not higher spending amount). Randomly pushed mobile marketing information is effective in keeping passengers in shops for longer but context-aware mobile marketing is more effective in increasing spending amount.

Ordering Behavior and the Impact of Allocation Mechanisms in an Integrated Distribution System

We study the impact of three well‐known inventory allocation mechanisms, including proportional, linear, and uniform, on the ordering behavior of retailers serviced from a central distribution center. Based on the allocation mechanism, retailers may have an incentive to adjust (either inflate or deflate) their orders to gain a more favorable allocation, a behavior that may reduce allocation efficiency from a system perspective. We find that while all three mechanisms are centrally optimal under common knowledge of local demands, only the uniform allocation incentivizes retailers to set orders truthfully. Consistent with theory, our experimental results show that using proportional or linear allocation results in larger and more frequent order adjustments, with the degree of strategic ordering being largest under the linear mechanism. Across all mechanisms, order adjustments decrease both allocation efficiency and local retail profits. While uniform allocation results in smaller and less frequent adjustments overall, it may not be feasible to implement in more general settings. Hence, we propose and test a new mechanism, tailored uniform, that leverages the uniform principle while overcoming some practical limitations. It provides more flexibility by allowing for differences in the allocated quantities among retailers, while still providing no incentive for order manipulation. The tailored uniform mechanism performs similarly to uniform in terms of order adjustments, and further increases allocation efficiency when retailers have heterogeneous demands.

The impact of a manufacturer’s financial liquidity on its market strategies and pricing and promotion decisions in retail grocery markets

We investigate how two primary determinants of financial liquidity—leverage and cash holdings—affect a firm’s strategic orientation between profit and revenue maximizations, and the consequent tactical pricing and promotion decisions. To this end, we develop a structural model of manufacturers’ strategic behavior and marketing mix decisions in retail markets of grocery and consumer packaged goods. Applying the model to comprehensive data on 92 firms’ financial structure, and their sales, prices, and promotions for 9,111 UPCs sold at 100 retail stores in the Chicago metropolitan area over 400 weeks, we find empirical evidence in support of our hypotheses that increased leverage makes firms with low cash holdings more profit-oriented while firms with high cash holdings become more revenue-oriented. The ensuing pricing and promotion decisions to implement the strategic orientation are shown to vary with the sensitivity of demand to the marketing instruments and their costs.

Impact of digital marketing techniques on Customer behavior in Retail

Retail is a sector that must keep the customer at its core of operations. Is the customer one person? The obvious answer here – Every person or customer is different. When attributes such as demographics, preferences, age, gender, likes and dislikes, are added to the equation, retailers realize that their best way forward is to customize and curate an experience – at scale. The execution at scale is often hampered by the physical and large-scale computational limitations of human beings (even as a collective). That’s where digital marketing tools step in. The paper talks about these digital marketing tools, how and why they have become relevant, and the ways in which it is customizing experiences and enhancing customer satisfaction.

Reexamination of Bargaining Power in the Distribution Channel under Possible Price Pass-through Behaviors of Retailers

Reexamination of Bargaining Power in the Distribution Channel under Possible Price Pass-through Behaviors of Retailers

Impact of Interest Rate Risk on Supply Chain Network under Bank Credit and Trade Credit Financing

The purpose of this study is to propose a methodology that reflects the impact of interest rate risk on firms in supply chain network under bank financing and trade credit and further describe how trade credit improves the impact of interest rate risk on supply chain network through a financial flow equilibrium. A mean-variance framework and a network equilibrium analysis are integrated to provide a modeling framework. The model allows for the investigation of how bank credit financing (BCF) and trade credit financing (TCF) affect the payment strategy and financial flow of interconnected firms in supply chain networks and how they are affected by interest rate risks. The optimal behavior of manufacturers and retailers is described through variational inequality. We construct a supply chain network equilibrium model and derive qualitative properties of the solution and the function that becomes assimilated to the variational inequality problem. Additionally, variational inequality is solved using the modified projection method. This study extends the research on the impact of interest rate risk on the decision in supply chain network of firms. While other studies focus on the game between banks and firms, only a few authors have made attempts to examine the game between one manufacturer and one retailer in supply chain. An effective trade credit strategy is obtained by balancing cash and credit transactions. Through the case study, we learn how to balance the capital flow effectively to improve the negative impact of interest rate risk on supply chain.

Philadelphia's Excise Tax on Sugar-Sweetened and Artificially Sweetened Beverages and Supplemental Nutrition Assistance Program Benefit Redemption.

Objectives. To assess the effect of a 2017 excise tax on sugar and artificially sweetened beverages in Philadelphia, Pennsylvania, on the shopping patterns of low-income populations using Supplemental Nutrition Assistance Program (SNAP) data. Methods. I used a synthetic controls approach to estimate the effect of the tax on Philadelphia and neighboring Pennsylvania counties (Bucks, Delaware, and Montgomery) as measured by total SNAP sales ("SNAP redemption") and SNAP redemption per SNAP participant. I assembled biannual data (2005-2019) from all US counties for SNAP redemption and relevant predictors. I performed placebo tests to estimate statistically significant effects and conducted robustness checks. Results. Detectable increases in SNAP spending occurred in all 3 Philadelphia neighboring counties. Per-participant SNAP spending increased in 2 of the neighboring counties and decreased in Philadelphia. These effects were robust across multiple specifications and placebo tests. Conclusions. The tax contributed to increased SNAP shopping in Philadelphia's neighboring counties across both outcome measures, and decreased spending in Philadelphia (at least by 1 measure). This raises questions about retailer behavior, the effectiveness of the tax's public health aim of reducing sugar-sweetened beverage consumption, and policy aims of investing in low-income communities. (Am J Public Health. 2021;111(11):1986-1996. https://doi.org/10.2105/AJPH.2021.306464).

A Synthetic Control Analysis of Philadelphia, Pennsylvania’s Excise Tax on Sugar-Sweetened and Artificially Sweetened Beverages and Supplemental Nutrition Assistance Program Benefit Redemption

Objectives: To assess the effect of a 2017 excise tax on sugar and artificially-sweetened beverages in Philadelphia, Pennsylvania on the shopping patterns of low-income populations using Supplemental Nutrition Assistance Program (SNAP) data. Methods: A synthetic controls approach was used to estimate the effect on Philadelphia and neighboring Pennsylvania counties (Bucks, Delaware, Montgomery) as measured by total SNAP sales (“SNAP redemption”) and SNAP redemption per SNAP participant. Biannual data (2005-2019) were assembled from all US counties for SNAP redemption and relevant predictors. Placebo tests were performed to estimate statistically significant effects, and robustness checks were conducted. Results: Detectable increases in SNAP spending were observed in all Philadelphia neighbors. Increases in per-participant SNAP spending were detected in two neighbors, and a decrease was detected in Philadelphia. These effects were robust across multiple specifications and placebo tests. Conclusions: The tax contributed to increased SNAP shopping in Philadelphia’s neighbors across both outcome measures, and decreased spending in Philadelphia (at least by one measure). This raises questions about retailer behavior, the effectiveness of the tax’s public health aim of reducing SSB consumption, and policy aims of investing in low-income communities.

Efficiency and Foreclosure Effects of Vertical Rebates: Empirical Evidence

In many industries, upstream manufacturers pay downstream retailers for achieving quantity or market share targets. These “vertical rebates” may mitigate downstream moral hazard by inducing greater retail effort but may also incentivize retailers to drop competing products. We study these offsetting effects empirically for a rebate paid to one retailer. Using a field experiment, we exogenously vary the outcome of retailer effort. We estimate models of consumer choice and retailer behavior to quantify the rebate’s effect on retail assortment and effort. We find that the rebate is designed to exclude a competing product and fails to maximize social surplus.

MUDANÇAS NA PRODUÇÃO DE CERVEJA ARTESANAL NA REGIÃO SUL FLUMINENSE DURANTE A PANDEMIA

Introduction: Brazil is the third largest beer producer in the world and with the arrival of the COVID-19 pandemic, beer consumption has undergone an adaptation with closed restaurants and bars or bars with reduced public capacity. Objective: The objective of this study was to explore the changes arising from the pandemic in microbreweries in the southern region of Rio de Janeiro in the period between March and September 2020.Methods: The survey was conducted using a form consisting of eleven questions, which addressed issues related to changes in beer production. Results: The results showed that 53% of the breweries showed an increase in production and the arrival of new consumers during the COVID-19 pandemic. These changes brought adaptations in filling, with an increase of 17.6% in the use of PET bottles and innovation in marketing, with 88% using delivery and/or e-commerce applications. Conclusions: The results showed the increase in production and the arrival of new consumers during the COVID-19 pandemic. These changes aroused retail behavior in industries, making them adapt and search for innovations.

Mediating Role of Perceived Value on the Relationship Among Perceived Risks, Perceived Quality, and Purchase Intention of Private Label Brands

In the current competitive retail market, retailers constantly strive to deliver products to consumers at a better value. Consumers are becoming more price sensitive but still seeking quality products. A retailer can establish value with a brand. Consequently, retailers are introducing their own private label brands (PLBs), which also differentiate their products from competitors. The role of perceived value in the purchase behavior of PLBs and its relationship with quality and various risk dimensions has received scant consideration in the retailing literature. Our study suggests perceived value is a mediating part in associations amid perceived quality, perceived risks, and purchase intention of PLBs. A structural equation modeling approach was adopted to test the proposed hypotheses with a convenience sample of 458 consumers of retail department stores obtained via a cross-sectional survey. The results demonstrate that the role of perceived value is vital in strengthening the association of consumer-perceived quality and purchase intention of PLBs as well as minimizing the consumer’s risks as they intend to buy PLBs. Overall, the study contributes to the emerging retail and consumer behavior literature regarding the role of perceived value in purchase intention of PLBs.

Mobile wallets: achieving intention to recommend by brick and mortar retailers

ABSTRACT The objective of this study is to examine antecedents as well as consequences of mobile wallet usage for achieving the ultimate consequence of “intention to recommend to use” by brick and mortar retailers. The model incorporates attitude and subjective norms leading to perceived usefulness and usage intention for mobile wallets. It also reveals perceived cost having a negative impact and perceived trust having a positive impact on usage intention toward mobile wallets. The study was conducted on small brick and mortar retailers. Statistical techniques such as reliability, validity and mediation analyses were conducted to test the hypothesized model, using SPSS Macro Process Hayes. Results indicate a positive impact of intention to use on user’s tendency to recommend mobile wallets. This study provides valuable insights and a strategic direction for mobile wallet service providers and also government regulators, to prepare a holistic framework to enhance adoption and usage of the wallets among retailers and traders. This is a relatively under explored demographic with reference to mobile wallets. It explains, in totality, various facets of behavior of retailers, with reference to mobile wallets. A unique contribution of this research to the extant literature on mobile wallet adoption and usage is that it is based on the Theory of Reasoned Action (TRA) and extends TRA by adding “intention to recommend” as a logical consequence of “usage intention” for mobile wallets.

Estimation of potential lost sales in retail networks of high-value substitutable products

Sales data reveal only partial information about demand due to stockout-based substitutions and lost sales. We develop a data-driven algorithm to estimate stockout-based lost sales and product demands in a distribution network of high-value substitutable products such as cars, using only past sales and inventory log data and product substitution ratios. The model considers the particular customer and retailer behaviors frequently observed in high-value product markets, such as visiting multiple stores by customers for a better match and exploiting on-demand inventory transshipments by retailers to satisfy the demand for out-of-stock products. It identifies unavailable products for which a retailer could not fulfill demand and estimates the potential lost sales and the probability distribution of product demands for the potential lost sales using sales data in retailers with similar sales profiles while considering retailers’ market sizes. We validate the results of our algorithm through field data collection, simulation, and a pilot project for a case of recreational vehicles. We also show the result of implementing our model to estimate lost sales across the large retail network of a leading vehicle manufacturer. Our case study shows sales data significantly underestimate the demand for most products.

Differential game model and coordination model for green supply chain based on green technology research and development

The purpose of this paper is to establish a green supply chain differential game model for green technology research and development based on a secondary green supply chain composed of a single manufacturer and a single retailer. It compares the differential game equilibrium solutions under centralized and decentralized decision-making. The green supply chain members are coordinated through the dynamic wholesale price mechanism, and numerical simulation is used as a methodology, to verify and explain the results. The study found that compared to decentralized decision-making, the level of green technology and the total profit of green channels are higher under centralized decision-making. When the coordination parameters are within a certain range, the dynamic wholesale price mechanism can coordinate the behavior of manufacturers and retailers. The result also discovers that under the dynamic wholesale price mechanism, with the increase of investment cost coefficient, or the increase of price sensitivity or the decrease of consumer's environmental awareness, the green technology level, product green degree, price, retailer's profit, and the total profit of green channel is decreased. In contrast, the wholesale price and manufacturer's profits are increased.

Regulations on the corporate social irresponsibility in the supply chain under the multiparty game: Taking China's organic food supply chain as an example

This paper considers the lack of corporate social responsibility in the organic food supply chain in a new context, that is, the fraudulent subsidies claiming behavior of the manufacturers and the lack of organic food supervision of the fast-growing e-commerce retailers in China. We construct a three-party evolutionary game model among government regulatory departments, manufacturers and e-commerce retailers to analyze the evolution process of the behaviors of manufacturers and e-commerce retailers under government's changing regulation. The results show that: (1) The government can promote the production of organic food by the moderate supervision of manufacturers; Low intensity supervision cannot restrain fraudulent subsidies claiming behavior, while high intensity supervision will restrain the orderly development of organic food industry. (2) The greater the government subsidies on technology and R & D of manufacturers, the more conducive the manufacturerss will be to overcome technical problems and realize the scale of the organic food industry, so that it will eventually evolve towards the direction of active production of organic food. (3) The government's low-intensity fine on e-commerce retailers when they fail to fulfill their responsibilities is not enough to prompt them to choose the strategy of responsibility fulfillment, and the greater the fine is, the more conducive it is for them to evolve towards fulfilling their social responsibilities. (4) Appropriate government funding for e-commerce retailers will encourage them to fulfill their responsibility, but excessive funding will make e-commerce retailers over rely on government funding. Our research provides a better understanding of the irresponsible behavior of organic food supply chain enterprises, our management insights can help improve the government's regulation performance of such behavior, and can also provide a reference for other countries facing similar challenges.

Testing of Standardized Advertising Slogans Within the Marketing Communication of Sustainable and Local Foods in Order to Reveal Consumer Preferences

Marketing communication concerning the consumer in the retail food market is currently undergoing significant changes, based on a shift from the passive supply to manage the consumer, toward an effort to understand his needs. The changes in communication are influenced by the technological revolution, which has also significantly affected retail and consumer shopping behavior, resulting in the modern changes in how to approach customers nowadays. Marketing communication must respond to changes in purchasing behavior with the greatest possible flexibility and ability to follow current trends. The presented research will aim to present the importance of the topic and emphasize its topicality by defining specific forms of communication causing an increase in consumer interest in local and sustainable food. Part of the aim of the presented work will be a general proposal for applying specific forms of marketing communication, increasing the interest of consumers in local foods characterized by the attribute of sustainability. The theoretical basis of the work presents current knowledge focused on marketing communication about sustainability in the food chain and consumers' relationship to local and sustainable food, which builds the communication. The work is based on collecting primary data and their subsequent management by mathematical and statistical methods. Friedman's test as a method used for data processing allows us to reveal differences in consumer preferences between various forms of standardized marketing communication to increase local, sustainable foods to engage the consumer. Independently of the Friedman test, the Chi-square test allows us to find races among the individuals corresponding to the respondents. The research results reveal that the differences between the various forms of standardized marketing communication bring a new perspective on the role of communication with the consumer. The results also reveal the role of a specific label expressing the sustainability of local foods. The benefit of our work is to set recommendations for producers and distributors of local and sustainable foods in the field of marketing communication.

THE DEVELOPMENT OF RETAIL STORE TYPES IN THE CONTEXT OF REGION AND CONSUMER BEHAVIOUR

The aim of the article is to analyze the prevalence of retail stores in Latvian regions and consumer behavior in Latvia. The authors have analyzed the prevalence of largest retail stores in regions and consumer behavior in retail using available statistical data and research done by the authors. As a result of the study, the role of shop assistants was determined during the purchasing process, and the results of the study have been compiled from the viewpoint of generations. These results can help retail companies to work more effectively by choosing the most appropriate retail store types