Retail restructuring and consumer choice 2:understanding consumer choice at the household level

This paper complements the preceding one by Clarke et al, which looked at the long-term impact of retail restructuring on consumer choice at the local level. Whereas the previous paper was based on quantitative evidence from survey research, this paper draws on the qualitative phases of the same three-year study, and in it we aim to understand how the changing forms of retail provision are experienced at the neighbourhood and household level. The empirical material is drawn from focus groups, accompanied shopping trips, diaries, interviews, and kitchen visits with eight households in two contrasting neighbourhoods in the Portsmouth area. The data demonstrate that consumer choice involves judgments of taste, quality, and value as well as more ‘objective’ questions of convenience, price, and accessibility. These judgments are related to households’ differential levels of cultural capital and involve ethical and moral considerations as well as more mundane considerations of practical utility. Our evidence suggests that many of the terms that are conventionally advanced as explanations of consumer choice (such as ‘convenience’, ‘value’, and ‘habit’) have very different meanings according to different household circumstances. To understand these meanings requires us to relate consumers’ at-store behaviour to the domestic context in which their consumption choices are embedded. Bringing theories of practice to bear on the nature of consumer choice, our research demonstrates that consumer choice between stores can be understood in terms of accessibility and convenience, whereas choice within stores involves notions of value, price, and quality. We also demonstrate that choice between and within stores is strongly mediated by consumers’ household contexts, reflecting the extent to which shopping practices are embedded within consumers’ domestic routines and complex everyday lives. The paper concludes with a summary of the overall findings of the project, and with a discussion of the practical and theoretical implications of the study.

The behavioural homogeneity evaluation framework:Multi-level evaluations of consumer involvement in international segmentation

This paper presents a generic strategic framework of alternative international marketing strategies and market segmentation based on intra- and inter-cultural behavioural homogeneity. Consumer involvement (CI) is proposed as a pivotal construct to capture behavioural homogeneity, for the identification of market segments. Results from a five-country study demonstrate how the strategic framework can be valuable in managerial decision-making. First, there is evidence for the cultural invariance of the measurement of CI, allowing a true comparison of inter- and intra-cultural behavioural homogeneity. Second, CI influences purchase behaviour, and its evaluation provides a rich source of information for responsive market segmentation. Finally, a decomposition of behavioural variance suggests that national-cultural environment and nationally transcendent variables explain differences in behaviour. The Behavioural Homogeneity Evaluation Framework therefore suggests appropriate international marketing strategies, providing practical guidance for implementing involvement-contingent strategies. © 2007 Academy of International Business. All rights reserved.

Macro-level change and micro-level effects:a twenty year perspective on changing grocery shopping behaviour in Britain

In this paper we summarise key elements of retail change in Britain over a twenty-year period. The time period is that covered by a funded study into long-term change in grocery shopping habits in Portsmouth, England. The major empirical findings—to which we briefly allude—are reported elsewhere: the present task is to assess the wider context underlying that change. For example, it has frequently been stated that retailing in the UK is not as competitive as in other leading economies. As a result, the issue of consumer choice has become increasingly important politically. Concerns over concentration in the industry, new format development and market definition have been expressed by local planners, competition regulators and consumer groups. Macro level changes over time have also created market inequality in consumer opportunities at a local level—hence our decision to attempt a local-level study. Situational factors affecting consumer experiences over time at the local level involve the changing store choice sets available to particular consumers. Using actual consumer experiences thus becomes a yardstick for assessing the practical effectiveness of policy making. The paper demonstrates that choice at local level is driven by store use and that different levels of provision reflect real choice at the local level. Macro-level policy and ‘one size fits all’ approaches to regulation, it is argued, do not reflect the changing reality of grocery shopping. Accordingly, arguments for a more local and regional approach to regulation are made.

Consumer brand equity : a model for the measurement, analysis and evaluation of consumer perceived value

The topic of my research is consumer brand equity (CBE). My thesis is that the success or otherwise of a brand is better viewed from the consumers’ perspective. I specifically focus on consumers as a unique group of stakeholders whose involvement with brands is crucial to the overall success of branding strategy. To this end, this research examines the constellation of ideas on brand equity that have hitherto been offered by various scholars. Through a systematic integration of the concepts and practices identified but these scholars (concepts and practices such as: competitiveness, consumer searching, consumer behaviour, brand image, brand relevance, consumer perceived value, etc.), this research identifies CBE as a construct that is shaped, directed and made valuable by the beliefs, attitudes and the subjective preferences of consumers. This is done by examining the criteria on the basis of which the consumers evaluate brands and make brand purchase decisions. Understanding the criteria by which consumers evaluate brands is crucial for several reasons. First, as the basis upon which consumers select brands changes with consumption norms and technology, understanding the consumer choice process will help in formulating branding strategy. Secondly, an understanding of these criteria will help in formulating a creative and innovative agenda for ‘new brand’ propositions. Thirdly, it will also influence firms’ ability to simulate and mould the plasticity of demand for existing brands. In examining these three issues, this thesis presents a comprehensive account of CBE. This is because the first issue raised in the preceding paragraph deals with the content of CBE. The second issue addresses the problem of how to develop a reliable and valid measuring instrument for CBE. The third issue examines the structural and statistical relationships between the factors of CBE and the consequences of CBE on consumer perceived value (CPV). Using LISREL-SIMPLIS 8.30, the study finds direct and significant influential links between consumer brand equity and consumer value perception.

Challenging market conventions:supermarket diversification and consumer resistance in children's apparel purchases

Purpose – In the UK, while fashion apparel purchasing is available to the majority of consumers, the main supermarkets seem – rather against the odds and market conventions – to have created a new, socially-acceptable and legitimate, apparel market offer for young children. This study aims to explore parental purchasing decisions on apparel for young children (below ten years old) focusing on supermarket diversification into apparel and consumer resistance against other traditional brands. Design/methodology/approach – Data collection adopted a qualitative research mode: using semi-structured interviews in two locations (Cornwall Please correct and check againand Glasgow), each with a Tesco and ASDA located outside towns. A total of 59 parents participated in the study. Interviews took place in the stores, with parents seen buying children fashion apparel. Findings – The findings suggest that decisions are based not only on functionality (e.g. convenience, value for money, refund policy), but also on intuitive factors (e.g. style, image, quality) as well as broader processes of consumption from parental boundary setting (e.g. curbing premature adultness). Positive consumer resistance is leading to a re-drawing of the cultural boundaries of fashion. In some cases, concerns are expressed regarding items that seem too adult-like or otherwise not as children's apparel should be. Practical implications – The paper highlights the increasing importance of browsing as a modern choice practice (e.g. planned impulse buying, sanctuary of social activity). Particular attention is given to explaining why consumers positively resist buying from traditional label providers and voluntarily choose supermarket clothing ranges without any concerns over their children wearing such garments. Originality/value – The paper shows that supermarket shopping for children's apparel is now firmly part of UK consumption habits and choice. The findings provide theoretical insights into the significance of challenging market conventions, parental cultural boundary setting and positive resistance behaviour.

Drawing association rules between purchases and in-store behaviour:an extension of the market basket analysis

Shopping behavior is often exclusively studied through consumer purchases, since they are an easily measurable ouput. Still, the observation of in-store physical behavior (path, moves and actions) is crucial, as is the quantification of its impact on purchases. Using an innovative PDA tool to precisely record and time stamp consumers' moves and actions, we extend the classical Market Basket Analysis (MBA) by integrating this new information: associations between product categories are measured not only from purchases but also from consumer physical behavior. We compare results of our new method with classical MBA results and show a significant improvement.

Unilateral versus coordinated effects:comparing the impact on consumer welfare of alternative merger outcomes

The nature of tacitly collusive behaviour often makes coordination unstable, and this may result in periods of breakdown, during which consumers benet from reduced prices. This is allowed for by adding demand uncertainty to the Compte et al. (2002) model of tacit collusion amongst asymmetric rms. Breakdowns occur when a rm cannot exclude the possibility of a deviation by a rival. It is then possible that an outcome with collusive behaviour, subject to long/frequent break downs, can improve consumer welfare compared to an alternative with sustained unilateral conduct. This is illustrated by re-examining the Nestle/Perrier merger analyzed by Compte et al., but now also taking into account the potential for welfare losses arising from unilateral behaviour.

Unilateral versus coordinated effects:comparing the impact on consumer welfare of alternative merger outcomes

The nature of tacitly collusive behaviour often makes coordination unstable, and this may result in periods of breakdown, during which consumers benefit from reduced prices. This is allowed for by adding demand uncertainty to the Compte et al. (2002) model of tacit collusion amongst asymmetric firms. Breakdowns occur when a firm cannot exclude the possibility of a deviation by a rival. It is then possible that an outcome with collusive behaviour, subject to long/frequent break downs, can improve consumer welfare compared to an alternative with sustained unilateral conduct. This is illustrated by re-examining the Nestle/Perrier merger analyzed by Compte et al., but now also taking into account the potential for welfare losses arising from unilateral behaviour.

Satisfaction with complaint handling:a replication study on its determinants in a business-to-business context

Research on the drivers of satisfaction with complaint handling (SATCOM) underlines the importance of procedural, relational, and interactional justice (Orsingher, Valentini, & de Angelis, 2010). Since these SATCOM-studies are largely conducted in business-to-consumer (B2C) markets, it is unclear what drives SATCOM in business-to-business (B2B) markets. Therefore, we replicate the justice model in an industrial context and find significant differences for procedural justice and interactional justice but not for distributive justice. While distributive justice is equally important in both contexts, procedural justice is more important in B2B markets whereas interactional justice drives SATCOM only in B2C markets. © 2013 Elsevier B.V.

A taxonomy of measures for consumer-based brand equity:drawing on the views of managers in Europe

Purpose: The purpose of this paper is to identify the components of consumer-based brand equity from the perspective of experts in brand management in the UK, Germany and Greece. Design/methodology/approach: Data were collected from semi-structured interviews with senior brand consultants and managers, five in the UK, five in Germany and five in Greece. Findings: The findings suggested four categories of measures which can be used to define brand equity. These are the consumers' understanding of brand characteristics; consumers' brand evaluation; consumers' affective response towards the brand; and consumers' behaviour towards the brand. Specific dimensions are identified as indicators of each category. Research limitations/implications: Although the focus of this study is Europe, data were only collected from the UK, Germany and Greece, countries representing three of the five European cultural clusters. The resultant taxonomy adds to the fragmented literature on brand equity measurement by proposing four categories to gauge brand equity. Practical implications: The suggested taxonomy provides indicators of a framework managers could use when assessing brand equity. Originality/value: There is little agreement on what constitutes brand equity and therefore measures of brand equity are fragmented. To date, the views of practicing managers have not been taken into account in research. This paper draws on the views of practitioners and academics to suggest a taxonomy of categories of measures for brand equity. © Emerald Group Publishing Limited.

Reading before buying - exploring consumer attitudes toward informative function of packaging

Oftentimes, packaging is the first and only marketing tool consumers encounter before a purchase, therefore it is considered to be the most important communication and informative tool (Behaegel, 1991; Peters, 1994). The aim of the research is to better understand food label usage of consumers. To make the identification of behaviour patterns possible and to understand the way consumers use labels on packaging netnography has been chosen as the research method. We identified market factors in our research which result in label use. Based on our results, two large consumer segments were identified: conscious and non-conscious consumer behaviours. Reading information on packaging can be classified in two ways, according to method of use (superficial, conditional, incidental) and place (home, or point of sale).

The effects of store atmosphere on shopping behaviour - A literature review.

This paper provides an insight into how the atmospherics of a retail environment influence shopping behaviour. Its objective is to support researchers and practitioners by summarizing the current state of knowledge and identifying gaps and avenues for future research. The scope covers studies in retail marketing and environmental psychology published during the last 35 years. It has been shown that environmental cues (music, scent etc.) have an effect on the emotional state of the consumer, which in turn causes behavioural changes, both positive (approach, buy more, stay longer etc.) and negative (not approach, buy less, leave earlier etc.). Most studies make reference to the PAD model, which proposes that the relevant emotions in this process can be measured along three dimensions Pleasure, Arousal and Dominance (Mehrabian, A. & Russell, J.A.,1974, An approach to environmental psychology, Cambridge, MA.: MIT Press). Since then, significant advances have been made to understand the effect of individual cues, their interaction, as well as the role of moderators, such as gender, age, or shopping motivation. However, there are a number of opportunities for further research. Too little is known about the moderating effects of Arousal and Dominance and how they interact with each other and with Pleasure dimension. Also a number of other moderators, such as gender and culture, should be integrated into the model.

A virtuális térben élő fogyasztó – A Second Life hatása a fogyasztói magatartásra (Consumer in the virtual world – Affect of the Second Life to the consumer behavior)

A virtuális szociális világok, úgy mint a Second Life, egyre nagyobb népszerűségre téve szert, hamar az üzleti érdeklődés középpontjában találták magukat. A szerző célja, hogy feltérképezze a virtuális identitás és a fogyasztói magatartás közötti kapcsolat mibenlétét a Second Life világában. Ezért először bemutatja, hogy miként működik a Second Life és milyen jellemzőkkel rendelkezik. Másodszor ismerteti, hogy az on-line identitásalkotás miként befolyásolja üzleti szempontból az individuális viselkedést. A Second Life vizsgálata során a virtuális identitás fogalmát használja föl, mely összevethető az egyén valódi életbeli identitásával. Harmadszor: rátér a kutatási részre, amely során a Second Life világában kialakított identitás jellemzőit vizsgálta. Négy virtuális identitástípust azonosított, melyeknek más és más kapcsolata van a virtuális fogyasztás jelenségével. Végezetül: kiemeli azokat az eredményeket és megállapításokat, melyeket a vállalatoknak különösképpen figyelembe kell venniük a pszichológiai nézőpont szempontjából ahhoz, hogy eredményesen szerepeljenek a virtuális világokban. ________ Given their increasing popularity, virtual worlds, such as Second Life, attracted the attention of the business media. The aim of the present article is to explore the relationship between virtual identity and consumer behaviour in Second Life. First, the author reviews Second Life functions and particular characteristics. Second, he illustrates how online identity construction affects one’s behaviour in such environments from a business perspective. Third, the author demonstrates his findings associated with identity construction in Second Life. More specifically, four different types of virtual identities can be identified, each with slightly different implications toward virtual consumption. Finally, he highlights the major points to which companies should pay particular attention in their virtual social world activities, focusing on the psychological mechanisms that influence people’s online behaviour and thinking.

The impact of airport shopping environments and dwell time on consumer spending

This article provides new insight into how the ambience and design of shopping environments impact onspending behaviour. Environmental cues in a retail area influence emotional states of by-passers, which in turn influence spending levels. Past research suggested that this effect only applies to shops with moderate arousal level. Also, several studies failed to confirm a relationship between emotions and spending levels. This is surprising, since high arousal environments (e.g., amusement parks, sports stadiums and airports) often feature a wide range of retail outlets. Based on survey data collected in a live airport shopping area, this study finds a relationship between pleasure emotions associated with the retail area and recalled consumer spending, but also the time available for shopping (which in an airport is constrained). Also, visitors’ emotional state was influenced by the ambience (e.g., cleanliness, noise levels, lighting) as well as the design (e.g., easy wayfinding, seating areas) of the retail area. Shopper’s arousal levels did not explain variations in spending level. Implications for researchers and managers are discussed as well as suggestions for future research.

The Causes and Effects of Consumer Competence Perceptions

Consumers are constantly making consumption decisions and engaging in marketplace activities that require some level of competence. In other words, consumers possess and require some knowledge, skills, and abilities to engage in the marketplace and obtain what they want. But what causes consumers to infer they are or are not competent? And, what are the consequences of these competence inferences on consumer behaviour? This dissertation examines the role consumption plays in consumers’ inferences of their own competence to enhance our understanding of these issues. By integrating the literature on competence and attributions of blame, this dissertation develops a theory for when and how consumption influences self-perceptions of competence and how these self-perceptions of competence impact future consumer behaviours. Evidence from five studies suggests that consumers infer their own competence from their consumption outcomes, despite who is actually responsible for causing these outcomes. This means consumers potentially see themselves as incompetent for negative outcomes that are entirely firm-caused. This dissertation argues that people infer their own competence from firm-caused outcomes because they conflate their decisions made prior to an outcome with the cause of that outcome. This dissertation also examines how these variations in self-perceptions of competence can influence future consumer behaviours.