•We investigate online store choice decisions of multi-channel grocery shoppers.•We take traditional store choice drivers and multi-channel factors into account.•We allow their effect to change with ...growing online shopping experience.•At start, consumers tend to select the store of the preferred offline chain.•Online store comparison and the impact of online assortment increase over time.
More and more grocery retailers are becoming multi-channel retailers, as they are opening an online alternative next to their traditional offline supermarkets. While the number of multi-channel grocery shoppers is also expanding at a fast growth rate, there are still large differences in online shopping frequency, and as a result, in the levels of experience with buying in the online grocery channel. This study wants to (i) identify the underlying drivers of online store choice and (ii) explore if and how these drivers change when multi-channel shoppers gain online grocery shopping experience. We investigate this question with an online store choice model using purchase data of an extensive UK household panel over a two-year period, covering all multi-channel retailers in the grocery market. Our results show that multi-channel shoppers, at the start of online grocery shopping, tend to select the online store belonging to the same chain as their preferred offline store, especially when the online store is strongly integrated with the offline store in terms of assortment. When online grocery shopping experience increases, multi-channel shoppers’ focus shifts from a comparison within a chain across channels to a comparison across chains within the online channel, resulting in an increasing importance of online assortment attractiveness and online loyalty when choosing an online store.
Alternative modes of entry in franchising Rosado-Serrano, Alexander; Navarro-García, Antonio
Journal of business research,
March 2023, 2023-03-00, Volume:
157
Journal Article
Peer reviewed
Franchising has been widely studied from the perspective of the franchisor-fraanchisee relationship and firms' performance. Meanwhile, entry mode studies have explored various avenues for ...internationalization by the pace and method of expansion and the governance mode adopted. Companies have used mixed modes of expansion depending on the features of their domestic and international markets. One form of expansion is the store-in-store strategy, which some firms view as providing real estate revenue and others consider as part of their business model. The increased adoption of this entry mode provides a window for theory development that considers store-in-store franchising and internationalization. Accordingly, this paper draws upon relational contracting theory to develop a conceptual framework for store-in-store franchising using host department stores for the purpose of domestic and international expansion. We also report on a survey to provide managerial insights to company executives on the adoption of the store-in-store strategy.
In this paper, the authors review current literature on retail formats and propose a new customer-centric framework for retailers to focus on as they continue to innovate and evolve. Specifically, ...they review the literature on how formats compare in their attributes and compete with each other; the role of customer behavior in format choice; and developments in multichannel and omnichannel retailing. They propose a framework for retail formats suggesting two paths – either reduce friction in the customer journey or enhance customer experience. They discuss the challenges faced by offline (physical store-first) and online (digital-first) retailers and elaborate on strategies each type of retailer is pursuing to address these challenges. Finally, they offer directions for future research in this domain. They conclude by calling for newer digital-first and physical-first players to continue coming up with different customer-centric formats, which they predict will slowly morph into integrated retailers, leaving space for newer players to enter the market and hence keep the wheel of retailing spinning.
Little is known about customer purchases of foods and beverages from small and non-traditional food retailers (i.e. corner stores, gas-marts, dollar stores and pharmacies). The present study aimed ...to: (i) describe customer characteristics, shopping frequency and reasons for shopping at small and non-traditional food retailers; and (ii) describe food/beverage purchases and their nutritional quality, including differences across store type.
Data were collected through customer intercept interviews. Nutritional quality of food/beverage purchases was analysed; a Healthy Eating Index-2010 (HEI-2010) score for purchases was created by aggregating participant purchases at each store.
Small and non-traditional food stores that were not WIC-authorized in Minneapolis and St. Paul, MN, USA.
Customers (n 661) from 105 food retailers.
Among participants, 29 % shopped at the store at least once daily; an additional 44 % shopped there at least once weekly. Most participants (74 %) cited convenient location as the primary draw to the store. Customers purchased a median of 2262 kJ (540 kcal), which varied by store type (P=0·04). The amount of added sugar far surpassed national dietary recommendations. At dollar stores, participants purchased a median of 5302 kJ (1266 kcal) for a median value of $US 2·89. Sugar-sweetened beverages were the most common purchase. The mean HEI-2010 score across all stores was 36·4.
Small and non-traditional food stores contribute to the urban food environment. Given the poor nutritional quality of purchases, findings support the need for interventions that address customer decision making in these stores.
Dollar stores have rapidly expanded their food offerings in recent years. These foods tend to be higher in calories and lower in nutrients, raising public health concerns, especially in rural and ...low-income areas where food-access challenges are often greatest. However, there is limited empirical evidence evaluating the impact of this expansion on household food purchases on a national scale. Using data from a yearly, nationally representative panel of approximately 50 000 households, we estimated the share of food purchases from 2008 to 2020 by store type and evaluated the role of dollar stores as food retailers in the United States. We found that dollar stores were the fastest-growing food retailers by household expenditure share (increasing by 89.7%), with rural growth outpacing growth elsewhere (increasing by 102.9%). Though dollar stores still represent a small share of national household food purchases (2.1% in 2020), they play an increasingly prominent role in food-at-home purchases for certain disadvantaged and rural communities. Understanding the quality of the foods they offer and how this may affect diet-related health outcomes is warranted. (
. 2023;113(3):331-336. https://doi.org/10.2105/10.2105/AJPH.2022.307193).
Do Store Brands Aid Store Loyalty? Seenivasan, Satheesh; Sudhir, K.; Talukdar, Debabrata
Management science,
03/2016, Volume:
62, Issue:
3
Journal Article
Peer reviewed
Do store brands aid store loyalty by enhancing store differentiation or merely draw price-sensitive customers with little or no store loyalty? This paper seeks to answer this question by empirically ...investigating the relationship between store brand loyalty and store loyalty. First, we find a robust, monotonic, positive relationship between store brand loyalty and store loyalty by using multiple loyalty metrics and data from multiple retailers and by controlling for alternative factors that can influence store loyalty. Second, we take advantage of a natural experiment involving a store closure and find that the attrition in chain loyalty is lower for households with greater store brand loyalty prior to store closure. Together, our results are consistent with evidence for the store differentiation role of store brands.
This paper was accepted by J. Miguel Villas-Boas, marketing
.
Dollar stores are rapidly altering the retail landscape for tobacco. Two of the three largest chains sell tobacco products in more than 24 000 stores across the USA. We sought to examine whether ...dollar stores are more likely to be located in disadvantaged neighbourhoods and whether dollar stores charge less for cigarettes than other tobacco retailers.
Data were collected from a statewide random sample of licensed tobacco retailers in California (n=7678) in 2019. Logistic regression modelled odds of a census tract containing at least one dollar store as a function of tract demographics. Linear mixed models compared price of the cheapest cigarette pack by store type, controlling for tract demographics.
Census tracts with lower median household income, rural status and higher proportions of school-age youth were more likely to contain at least one dollar store. The cheapest cigarette pack cost less in dollar stores compared with all store types examined except tobacco shops. Estimated price differences ranged from $0.32 (95% CI: 0.14 to 0.51) more in liquor stores and $0.39 (95% CI: 0.22 to 0.57) more in convenience stores, to $0.82 (95% CI: 0.64 to 1.01) more in small markets and $1.86 (95% CI: 1.61 to 2.11) more in stores classified as 'other'.
Dollar stores may exacerbate smoking-related inequities by contributing to the availability of cheaper cigarettes in neighbourhoods that are lower income, rural and have greater proportions of youth. Pro-equity retail policies, such as minimum price laws and density reduction policies, could mitigate the health consequences of dollar stores' rapid expansion.
PurposeThe purpose of this study is to investigate the impact of physical and social retail store environment, referred to as “storescape”, retail store attachment and employee citizenship behaviour ...towards customers on customer citizenship behaviour.Design/methodology/approachThe research employed a descriptive quantitative, cross-sectional design with a self-administered survey. Data were collected through an online research panel provider from 415 customers of department and discount department stores in Australia.FindingsThe findings show social storescape predicts customer citizenship behaviour directly, and that store attachment mediates the effect of both physical and social storescape on this behaviour. Employee citizenship behaviour towards customers was found to moderate the effect of storescape on customer citizenship behaviour. In addition, the effect of both positive physical and social storescape was found to be greater in discount department stores than department stores.Practical implicationsIn addition to highlighting the factors that drive customer citizenship behaviour, the study shows that storescape factors and their effect vary for department stores versus discount department stores.Originality/valueThis study shows the effect of storescape on customer citizenship behaviour. Drawing on resource exchange theory, this study is the first-known to identify storescape as both physical and social resources which can influence retail store attachment and customer citizenship behaviour. The study provides new insights into the differential effect of storescape in department versus discount department stores in motivating customers to engage in citizenship behaviour. Further, the study makes an important contribution by demonstrating the moderating role of employee citizenship behaviour towards customers.
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