Rural Retail Research Articles

Application of SERVPERF for Rural Retailer: Reliability and Factor Analysis

Retail sector is the booming sector in global and Indian economy. The Indian retail industry is divided into organized and unorganized sectors. The Indian retail sector is highly fragmented with 97% of its business being run by the unorganized retailers like the traditional family run stores and corner stores. This is the right time to know the quality of rural retailers. This study focuses on the rural retailer’s quality level through SERVPERF measuring scale (Croin, 1992). The tool was applied for 385 respondents from rural area in Dindigal District, Tamil Nadu. This research describe that most of the rural people are dissatisfied with the rural retailer services. At the same time qualification of the respondents and their position in the society play a major role to determine the attitude towards satisfaction. The rural retailer improves competiveness among them, and then only they will compete with organized retailer.

Urban Orientation of Rural Consumers: Implication for Consumer Goods Distribution

Demand for consumer goods in rural markets in the emerging economies is increasing, and these markets are being targeted by multinational companies marketing consumer goods. While all companies are designing distribution strategies to reach the existing rural retail outlets and the periodic markets, a few companies are also developing innovative modes of distribution. Despite the availability of a product in the rural retail formats, some rural consumers were found to make their purchases from a nearby town. This article studied the outshopping behaviour of rural consumers and identified that the decision of what and where to purchase consumer goods could be inferred by identifying their urban orientation. A ‘person–situation’ framework is used to segment the rural market based on the rural consumers’ urban orientation. This framework would help marketers plan their distribution for the rural consumers. The article also suggests a good promotional strategy should support the distribution strategies.

Marketing channel length in rural India

PurposeThe aim of this paper is to understand the influence of the external environment and rural retailer purchase preference on the length of channels in rural areas in India.Design/methodology/approachThe methodology involved the survey of over 686 rural retailers in 103 villages across rural India, to trace the structure of distribution channels.FindingsThe correlation analysis and ANOVA test show that channel length varies in regions based on variation in the external environment. Village retailer with his unique buying preferences also influences the distribution channel.Research limitations/implicationsThe study involves only two product categories and ignores the evolutionary aspect of distribution channels.Practical implicationsThe study provides pointers to marketers interested in gaining access to rural markets.Originality/valueThe paper is one of the first empirical studies which focuses on understanding the distribution channel in rural areas, by starting from the village retailer onwards to the channel intermediaries in the nearest small town.

A Study of Rural Retail and Distribution Mix with Respect to Essential Commodities

In India ever since independence, marketing acquire a largely urban bias. Hence, there were very less attempt on the part of marketers to distribute products to satisfy rural needs. An apathetic attitude also due to the assumption that the rural consumer are poor and had no purchasing power to buy expensive branded products. Besides such, lacks of transportation and communication links were also responsible for neglect of the rural consumer by the business firms.

Small Town Vitality and Viability: Learning from Experiences in the North East of England

Internationally, planning bodies and committees are required to make very difficult decisions with regard to the size, format, and location of rural retail developments, which may have significant long-term implications for the character and quality of rural life. Focusing on the issue of development location in the context of small towns, I evaluate the opportunities and threats associated with a movement to larger format stores. This is explored using case examples of town-centre development, out-of-centre development, and neglect from retail development within the North East of England. The results illustrate the potential to meet multiple policy objectives by encouraging town-centre/edge-of-centre development, but also permitting out-of-centre development when local circumstances render this appropriate.

Organized Retail in the Rural Markets in India

Retail is a buzz word in today’s changing business environment. Different industrial sectors are in the phase of transition from conventional business models to innovative, market driven and consumer centric models. In India retail is not a new word, however the emerging formats of retailing are changing the entire scenario and posing tough challenges in front of Indian retailers. They are now designing customized retail products and services and targeting the untapped segment of the market. Presently, nearly 60% of the population resides in rural India and their retail requirements are partially met by the unorganized retail stores. This study is an attempt to explore the potential of rural retail market of India, accessing their needs for products and brands. The study also aims at developing a business model for the rural retail market in India.

A qualitative examination of decoupling, recoupling and organizational survival of rural retailers

Purpose – The objective of this research was to identify organizational strategies used by rural retailers to balance conflicting demands of social norms and business performance standards to achieve success.Design/methodology/approach – In‐depth interviews with 12 community leaders and nine locally owned retailers in eight resilient rural communities in six different US states were conducted.Findings – The data suggest that operational strategies of local retailers in rural communities follow internal and external scripts and specific scripts are associated with decoupling and/or recoupling strategies and business survival. Decoupling occurs with internal scripts relating to business strategy and external scripts relating to community involvement and customer value. Recoupling was evident with internal scripts related to business strategy, attitude toward future business growth and attitude toward planning and survival; it was also evident with external scripts relating to community change and the local ...

Factors determining inshopping in rural US communities

PurposeThe purpose of this study is to determine factors influencing rural consumers' inshopping behaviours and to examine rural retailers' perceptions of the current rural retailing environment.Design/methodology/approachThis study was comprised of two phases. In Phase 1, consumer surveys were conducted in three rural US communities. In Phase 2, in‐depth interviews with retailers selected from the same communities were conducted.FindingsThe findings of the consumer surveys supported all hypothesised relationships, except the direct effect of community attachment on inshopping intention. The findings of the retailer interviews provided useful insights as to the challenges rural retailers are currently facing.Research limitations/implicationsThe findings have implications for both retailers and community leaders in rural places who wish to improve their understanding of the challenges and opportunities rural retailers face and subsequently develop strategies to promote inshopping behaviours.Originality/valueThis study examined both consumers and retailers in the context of rural retailing. Thus, the findings provide a more complete picture of the current retail industry in rural communities.

Critical Access Hospitals and Retail Activity: An Empirical Analysis in Oklahoma

This paper takes an empirical approach to determining the effect that a critical access hospital (CAH) has on local retail activity. Previous research on the relationship between hospitals and economic development has primarily focused on single-case, multiplier-oriented analysis. However, as the efficacy of federal and state-level rural health subsidies come under increasing scrutiny, more comprehensive investigations can provide support for continued funding. Data from 105 rural Oklahoma communities are used to explore whether the presence of a CAH impacts several measures of retail activity. The measures are: total retail sales, total number of retail establishments, and number of micro and small retail establishments. Ordinary least squares regression is used to evaluate the impact of a CAH after controlling for a host of other factors influencing retail activity such as local demographics, unemployment rates, and the presence of a Wal-Mart. The presence of a CAH has a positive and significant influence on each measure of retail activity. The parameter estimates suggest that a CAH has a similar influence on rural retail sales as a Wal-Mart, increasing total retail sales by approximately 28% over towns without a CAH. Other model results indicate that a CAH presence significantly increases the number of total retail establishments and the number of micro and small business establishments. The positive results provide additional evidence on the far-reaching economic development impacts of CAHs. The results also emphasize the importance of continued support for these rural institutions, including federal and state subsidies.

Beliefs of small, independently owned rural retailers about internet use: a typology

PurposeThe purpose of this paper is to develop a typology of small, rural retailers based on personal beliefs about business use of the internet and to identify similarities and differences between the retailer subgroups in attitude, perceptual performance, and behavioral intention to use the internet.Design/methodology/approachA mail survey is completed by owners of small, independently owned retailers in rural communities across the USA.FindingsCluster analysis reveals three types of retailers: optimists, efficiency minded, and skeptics. Differences in attitudes towards use of the internet and intention to use the internet for purposes of strategic positioning are found across the groups.Research limitations/implicationsThe sample frame consists of small, independently owned retailers in rural communities, the response rate is low, and results will not generalize to small retailers in urban areas.Practical implicationsThe stories of optimist retailers can show efficiency‐minded retailers how to gain greater benefit from use of the internet. The skeptical retailers are not likely to adopt the internet even when important others, such as their customers, want them to. These retailers may need to be sold on what the internet can do for retail performance of their specific business. An individualistic approach would likely be the only salient appeal to these retailers, since they are not socially compliant or socially embedded.Originality/valueThis paper produces a typology of small, rural retailers and provides information on internet use of such retailers, both of which are new to the literature.

Factors contributing to rural consumers' inshopping behavior

PurposeThe purpose of this paper is to examine how shopping behavior of rural consumers is affected by perceptions of local retailers' social norm‐based activities and task‐oriented actions, and social capital within the community.Design/methodology/approachA mail survey is distributed using a modification of Dillman's method; 524 usable surveys are collected. Multi‐group analysis in structural equation modeling is employed for the data analysis.FindingsThe findings of the paper reveal significant relationships between institutional action and legitimacy, legitimacy and support, and value and support. The moderating effect of social capital on the relationships between institutional action and legitimacy, legitimacy and support, and value and support are significant.Research limitations/implicationsThis paper extends previous research by including both social environmental factors (social capital), and retailers' social actions in explaining consumer support. Limitations of the research design are discussed and directions for future research are suggested.Practical implicationsThis research provides rural retailers with ideas for marketing solutions that use socio‐norm related (i.e. institutional action) and task‐oriented (i.e. performative action) factors to attract local shoppers.Originality/valueThis research adds to the current stream of rural research by integrating institutional theory and social capital theory to propose a conceptual framework. This research is significant as the study results provide implications to rural retailers and further to the community, as the sustainability of the rural sector is closely related to the well‐being of the entire community.

In Search of a Theory of Shopping Value: The Case of Rural Consumers

Although the challenges facing rural retailers have been attributed to competition and decreasing population, this paper defines the problem from rural consumers' perspective. It argues that consumers select shopping location on its shopping value, determined by its attractiveness and accessibility. The results indicate that locations closest to the consumer's residence offer the highest shopping value for groceries and other low-order goods. They also show that increasing gasoline prices favor local retailers. Rural retailers may use these results to implement differentiating strategies that increase their attractiveness, accessibility, and consequently their competitiveness. Declining number of rural retail stores across the United States is creating policy concerns about maintaining access to services for rural residents. Many researchers have shown that when the local population falls below a particular threshold, marginal revenue from retail activities falls below marginal cost, leading to closures (Mulligan, Wallace, and Plane; Bresnahan and Reise; Shonkwiler and Harris). Additionally, it has been shown that the arrival of large retailers such as Wal-Mart stores in towns relatively close to small towns and rural communities often accelerate the demise of retailers in these communities (Goetz and Swaminathan; Artz and Stone; Parr and Denike). These perspectives attempt to explain the problem from the supply side, assuming the consumer as a given. This paper attempts to explain the challenges facing small town and rural retailers from consumers' perspective, arguing that consumers' decisions about shopping locations are defined by their search for value from the shopping experience. Therefore, the paper extends central place theory and gravitational law of retailing research by focusing not on why retailers locate in particular locations but on the factors that motivate consumers to shop at particular locations. By focusing on the demand side of the retail exchange, the paper seeks to develop a theory of shopping value that would help local policy makers and retailers

Entrepreneurship as a Strategic Development Intervention to Accelerate Rural Development: The Case of Drishtee

This case narrates the success story of Drishtee, a for-profit company with the vision of spreading the benefits of ICT to rural India, where technology can bring long-awaited solutions for rural development. Drishtee is innovative in its concept and implementation and has been successful in facilitating the conception of a rural networking infrastructure through a tiered franchise and partnership model, which has led to the creation of entrepreneurs spread across various villages in rural India. It has an existing network of over 4100 Franchisee Entrepreneurs and 700 RRPs across 10 states in India. It also has the first mover advantage with expertise in rolling out a unique last mile distribution network, built on both Information and Communication Technology (ICT) application and ‘ground level entrepreneurship’. One of the key highlights of the company is its ability to develop products and services specifically designed to cater to the rural market through its subsidiary Quiver Info Services Ltd. With its unique distribution network of existing rural retail points and franchisees, lowering costs and margin expectations, it has succeeded in generating employment opportunities for rural entrepreneurs, with equal gender focus. For its laudable efforts, it has won many accolades including awards from World Bank, Schwab Foundation, WEF and Clinton Global Initiative and is already backed by Institutional investors including IFC, Acumen fund, Grameen foundation.

대규모 할인점과 경쟁에서 성공한 미국 농촌 소매업자들 경영전략

Since community growth and vitality frequently depend on local businesses and community inhabitants depend on local retailers for their daily necessities, studying small businesses in rural areas is important to community sustainability. The purpose of our research was to investigate what marketing, merchandising, customer service, or business operation strategies were being implemented by successful independent rural retailers(i.e., clothing, jewelry, floral, hardware etc.), in competition with large discount stores in the U.S.. In addition, social capital as indicated by community involvement was examined for its use as a business strategy that contributes to the success of small retailers. In-depth interviews were conducted with 27 rural retailers representing three communities within a Midwestern state. Data were content analyzed. Participants were following several of the recommended business strategies but opportunities existed to implement changes. Results are discussed in terms of key practices followed by these successful small business owners.

Rural retailing: a sector in decline?

PurposeThe paper seeks to review dynamic forms of rural retailing, by location, that have innovated through a mixture of actions leading to growth, adaptation, diversification and differentiation.Design/methodology/approachReviews relevant academic literature and draws upon contemporary policy‐related material that details recent innovation within the sector. A rural retail typology by location is presented: retailing within market towns, village shops and stand‐alone retailing forms (farm shops and speciality rural retail outlets).FindingsSince, the nature together with form of what characterises dynamic and innovative rural retailing differs by location, the typology is based on the above schema. First, market towns have used growth and differentiation opportunities as strategic foci. Second, innovative village shops have applied strategies that seek to counter their structural weaknesses, harness the community and yield new revenue streams. Third, the manner in which stand‐alone retailing forms, such as farm shops together with speciality rural retail outlets, have grown and developed is reviewed.Practical implicationsReviewing dynamic forms of rural retailing allows for a greater understanding of the operational needs for success. A lack of relevant research is cited together with examples.Originality/valueStereotyping rural retailing is erroneous since marginalised enterprises are juxtaposed against more innovative forms. Contrary to perceptions of rural decline, the sector is multi‐faceted with prospering sub‐sectors. The paper focuses on these more dynamic and innovative forms of rural retailing. Much of the previous focus in this sector has been on negative issues and decline. A synthesis of the key contributory phenomena is presented.

Multi‐channel shopping: channel use among rural consumers

PurposeThe research purpose was to identify whether changes occurred between 2000 and 2003 in the retail channel use of rural consumers for searching product information and for purchasing food and fiber products and to investigate whether differences existed between channel use groups (i.e. store only shoppers, store and catalog shoppers, and multi‐channel shoppers) concerning perceived time property, satisfaction with local offerings, community attachment, shopping criteria, and financial security.Design/methodology/approachSurvey methodology was used. Questionnaires were mailed to participants living in non‐metropolitan statistical areas of the USA with populations less than 12,500. In 2000, 2,198 participants returned the questionnaire. Follow‐up questionnaires were mailed to the same participants during 2003 and returned by 847 participants. The analysis is based on the responses of the 847 participants.FindingsTo search for information on apparel, food, or home furnishing products, internet use increased slightly as did use of the internet to purchase apparel and home furnishings. Multi‐channel shoppers rated themselves as time‐pressed, dissatisfied with local offerings, unattached to their community, and unconcerned with financial security while shopping.Practical implicationsRural consumers are slowly increasing their use of internet even as they report their satisfaction with shopping with local brick and mortar stores increased during the time period studied. The time is right for rural retailers to enhance both personal and professional relationships with their customers. Rural retailers can capitalize on consumer satisfaction and provide outstanding value and service to keep local customers in local markets.Originality/valueThe paper provides information on new and different retailing practices that satisfy rural consumers in the USA.

Beggar-thy-neighbor economic development: A note on the effect of geographic interdependencies in rural retail markets

Mushinski and Weiler (2002) updated a vein of rural economic geography literature by estimating empirically the importance for retail development of geographic interdependencies between places and their neighboring areas. This note extends interpretation of their empirical results by considering the influence of neighboring areas and establishments on retail thresholds in a place, and the policy and economic development implications of their results. This note discusses the nature of spatial competition and considers how retail establishments might act as regional base industries, absorbing shopping flows from outlying residents in a fashion similar to traditional export industries. Moreover, it signals that understanding geographic interdependencies is important for economic development planning, and suggests there may be merit in more regional coordination of retail firm recruitment in relatively small and/or isolated rural areas.

Using the Internet to Facilitate Outshopping by Rural Residents: Survey and Implications

ABSTRACT Outshopping is the behavior of consumers who make retail purchases outside of the community in which they live. Outshopping is most prevalent in rural communities and represents a serious threat to rural retailers. This paper investigates the impact of the Internet on outshopping by rural residents and examines behavior, attitudes, and future intentions. The study results indicate that rural consumers are using the Internet to facilitate outshopping and intend to significantly increase this behavior. These future intentions appear to be driven by high levels of satisfaction with the online buying experience. Implications for rural retailers are discussed.

Strategic alternatives for small retail businesses in rural areas

The issue of retailing in rural areas has received relatively little attention in recent years. This article considers retail businesses in a remote, rural area, the Uist chain in the Western Isles of Scotland. Drawing on the marketing and retail strategy literatures, a “funnical” model of rural retail strategies is developed, and examples of independent retail businesses that have adopted both market‐led and product‐led strategies are posited. These have ranged from a situation of “strategic stasis” within some retail organisations, where more “extensive” methods of running retail outlets have been adopted, through to various new development strategies. Overall, it is evident that retailers may mix strategic directions for their business within the specific geographic context that they are located. This appears to contrast with Jussila et.al. (1992: 192), who imply that their strategic alternatives are mutually exclusive and that the individual strategies are “spatially bound”. In the light of these findings, the article considers the implications presented for retailers in other rural areas of the UK.

Fertilizer use in semi-arid areas of Kenya: analysis of smallholder farmers' adoption behavior under liberalized markets

This paper analyzes the factors influencing farm level fertilizer adoption decisions under an era of liberalized markets in Kenya using a Tobit regression model. The level of education of the household head, experience using fertilizer, growing a cash crop, availability of fertilizer in rural retail outlets, availability in small packages, and land pressure positively influenced fertilizer use, while the size of family labor and location in the drier semi-arid zone were negatively associated with fertilizer use. The paper concludes with policy and research implications for strategies aimed at achieving greater fertilizer use on smallholder farms.