IDEAS home Printed from https://ideas.repec.org/a/eee/joreco/v43y2018icp119-130.html
   My bibliography  Save this article

Food shoppers’ share of wallet: A small city case in a changing competitive environment

Author

Listed:
  • Azeem, Muhammad Masood
  • Baker, Derek
  • Villano, Renato A.
  • Mounter, Stuart
  • Griffith, Garry

Abstract

Australia's highly concentrated food retail environment is examined in the context of competitive entry in a small city. Based on a conceptual framework that draws on existing literature, food stores’ customers’ share of wallet (SOW) is measured in a survey (n = 379) which brackets the opening of a new supermarket. A number of variables are recorded in the survey that are not available from other data collection methods. The drivers of SOW are determined using a 2-limit Tobit model which incorporates the direct and interactive aspects of the pathways identified in the Conceptual Framework. At one of the stores (Woolworths), the influence of loyalty schemes is found to vary with customers’ perceptions of stores, with implications for enhanced customer targeting by food retail managers. The impact of loyalty programs is found to be mitigated by the entry of a competitor, particularly in the case of price-conscious customers. Senior citizens are found to allocate higher SOW to small rather than large stores, and there are small effects due to the sex of the customer. There are few indications of a bespoke small city model of the drivers of SOW, but a number of interactions are identified for future research.

Suggested Citation

  • Azeem, Muhammad Masood & Baker, Derek & Villano, Renato A. & Mounter, Stuart & Griffith, Garry, 2018. "Food shoppers’ share of wallet: A small city case in a changing competitive environment," Journal of Retailing and Consumer Services, Elsevier, vol. 43(C), pages 119-130.
    • Handle: RePEc:eee:joreco:v:43:y:2018:i:c:p:119-130
    DOI: 10.1016/j.jretconser.2018.03.009
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0969698917307889
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jretconser.2018.03.009?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Gilles Laurent & Raphaelle Lambert-Pandraud & Eric Lapersonne, 2005. "Repeat Purchasing of New Automobiles by Older Consumers: Empirical Evidence and Interpretations," Post-Print hal-00458431, HAL.
    2. G. E. Fruchter & S. P. Sigué, 2009. "Social Relationship and Transactional Marketing Policies—Maximizing Customer Lifetime Value," Journal of Optimization Theory and Applications, Springer, vol. 142(3), pages 469-492, September.
    3. Seenivasan, Satheesh & Talukdar, Debabrata, 2016. "Competitive Effects of Wal-Mart Supercenter Entry: Moderating Roles of Category and Brand Characteristics," Journal of Retailing, Elsevier, vol. 92(2), pages 218-225.
    4. Kim, Hye-Young & Lee, Min-Young, 2010. "Emotional loyalty and share of wallet: A contingency approach," Journal of Retailing and Consumer Services, Elsevier, vol. 17(5), pages 333-339.
    5. Babakus, Emin & Yavas, Ugur, 2008. "Does customer sex influence the relationship between perceived quality and share of wallet?," Journal of Business Research, Elsevier, vol. 61(9), pages 974-981, September.
    6. Christopher F Baum, 2006. "An Introduction to Modern Econometrics using Stata," Stata Press books, StataCorp LP, number imeus, March.
    7. Puligadda, Sanjay & Ross, William T. & Chen, Jinjie & Howlett, Elizabeth, 2012. "When loyalties clash purchase behavior when a preferred brand is stocked out: The tradeoff between brand and store loyalty," Journal of Retailing and Consumer Services, Elsevier, vol. 19(6), pages 570-577.
    8. Gourieroux,Christian, 2000. "Econometrics of Qualitative Dependent Variables," Cambridge Books, Cambridge University Press, number 9780521589857, January.
    9. Jørgensen, Finn & Mathisen, Terje Andreas & Pedersen, Hassa, 2016. "Brand loyalty among Norwegian car owners," Journal of Retailing and Consumer Services, Elsevier, vol. 31(C), pages 256-264.
    10. Khare, Arpita, 2011. "Mall shopping behaviour of Indian small town consumers," Journal of Retailing and Consumer Services, Elsevier, vol. 18(1), pages 110-118.
    11. Bridson, Kerrie & Evans, Jody & Hickman, Melissa, 2008. "Assessing the relationship between loyalty program attributes, store satisfaction and store loyalty," Journal of Retailing and Consumer Services, Elsevier, vol. 15(5), pages 364-374.
    12. Lars Meyer-Waarden, 2015. "Effects of loyalty program rewards on store loyalty," Post-Print halshs-01260493, HAL.
    13. Sven-Olov Daunfeldt & Oana Mihaescu & Helena Nilsson & Niklas Rudholm, 2017. "What happens when IKEA comes to town?," Regional Studies, Taylor & Francis Journals, vol. 51(2), pages 313-323, February.
    14. Vishal P. Singh & Karsten T. Hansen & Robert C. Blattberg, 2006. "Market Entry and Consumer Behavior: An Investigation of a Wal-Mart Supercenter," Marketing Science, INFORMS, vol. 25(5), pages 457-476, September.
    15. Rosett, Richard N & Nelson, Forrest D, 1975. "Estimation of the Two-Limit Probit Regression Model," Econometrica, Econometric Society, vol. 43(1), pages 141-146, January.
    16. Jang, Sungha & Prasad, Ashutosh & Ratchford, Brian T., 2016. "Consumer spending patterns across firms and categories: Application to the size- and share-of-wallet," International Journal of Research in Marketing, Elsevier, vol. 33(1), pages 123-139.
    17. Meyer-Waarden, Lars, 2015. "Effects of loyalty program rewards on store loyalty," Journal of Retailing and Consumer Services, Elsevier, vol. 24(C), pages 22-32.
    18. Goodman, Steve & Remaud, Hervé, 2015. "Store choice: How understanding consumer choice of ‘where’ to shop may assist the small retailer," Journal of Retailing and Consumer Services, Elsevier, vol. 23(C), pages 118-124.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Chen, Yanyan & Mandler, Timo & Meyer-Waarden, Lars, 2021. "Three decades of research on loyalty programs: A literature review and future research agenda," Journal of Business Research, Elsevier, vol. 124(C), pages 179-197.
    2. Madani, Fatima & Seenivasan, Satheesh & Ma, Junzhao, 2021. "Determinants of store patronage: The roles of political ideology, consumer and market characteristics," Journal of Retailing and Consumer Services, Elsevier, vol. 63(C).
    3. Azeem, Muhammad Masood & Baker, Derek & Villano, Renato A. & Mounter, Stuart & Griffith, Garry, 2019. "Response to stockout in grocery stores: A small city case in a changing competitive environment," Journal of Retailing and Consumer Services, Elsevier, vol. 49(C), pages 242-252.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Azeem, Muhammad Masood & Baker, Derek & Villano, Renato A. & Mounter, Stuart & Griffith, Garry, 2019. "Response to stockout in grocery stores: A small city case in a changing competitive environment," Journal of Retailing and Consumer Services, Elsevier, vol. 49(C), pages 242-252.
    2. Chen, Yanyan & Mandler, Timo & Meyer-Waarden, Lars, 2021. "Three decades of research on loyalty programs: A literature review and future research agenda," Journal of Business Research, Elsevier, vol. 124(C), pages 179-197.
    3. Hu, Xin & He, Liuyi & Liu, Junjun, 2022. "Status reinforcing: Unintended rating bias on online shopping platforms," Journal of Retailing and Consumer Services, Elsevier, vol. 67(C).
    4. Pandit, Ameet & Vilches-Montero, Sonia, 2016. "Are reward cards just a business deal? The role of calculative versus emotional card commitment in driving store loyalty," Journal of Retailing and Consumer Services, Elsevier, vol. 31(C), pages 355-360.
    5. Francioni, Barbara & Savelli, Elisabetta & Cioppi, Marco, 2018. "Store satisfaction and store loyalty: The moderating role of store atmosphere," Journal of Retailing and Consumer Services, Elsevier, vol. 43(C), pages 333-341.
    6. Nishio, Kazuki & Hoshino, Takahiro, 2022. "Joint modeling of effects of customer tier program on customer purchase duration and purchase amount," Journal of Retailing and Consumer Services, Elsevier, vol. 66(C).
    7. Coelho do Vale, Rita & Verga Matos, Pedro & Caiado, Jorge, 2016. "The impact of private labels on consumer store loyalty: An integrative perspective," Journal of Retailing and Consumer Services, Elsevier, vol. 28(C), pages 179-188.
    8. Vilches-Montero, Sonia & Pandit, Ameet & Bravo-Olavarria, Renzo & Chao, Chih-Wei (Fred), 2018. "What loyal women (and men) want: The role of gender and loyalty program characteristics in driving store loyalty," Journal of Retailing and Consumer Services, Elsevier, vol. 44(C), pages 64-70.
    9. Sven-Olov Daunfeldt & Oana Mihaescu & Niklas Rudholm, 2022. "The Decline of Small Cities: Increased Competition from External Shopping Malls or Long-Term Negative Trends?," International Regional Science Review, , vol. 45(2), pages 225-257, March.
    10. Niklas Rudholm & Yujiao Li & Kenneth Carling, 2022. "How does big-box retail entry affect labor productivity in durable goods retailing? A synthetic control approach," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 69(1), pages 89-117, August.
    11. Rudholm, Niklas & Li, Yuijao & Kenneth, Carling, 2018. "How Does Big-Box Entry Affect Labor Productivity in Durable Goods Retailing? A Synthetic Control Approach," HUI Working Papers 130, HUI Research.
    12. Sonja Fourie & Michael Goldman & Michael McCall, 2023. "Designing for loyalty programme effectiveness in the financial services industry," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 28(3), pages 502-525, September.
    13. Tsai, Pei-Hsuan & Tang, Jia-Wei, 2023. "Consumers' switching intention towards E-commerce platforms’ store-to-store pickup services: The application of the extended PPM model," Journal of Retailing and Consumer Services, Elsevier, vol. 75(C).
    14. Phua, Peilin & Kennedy, Rachel & Trinh, Giang & Page, Bill & Hartnett, Nicole, 2020. "Examining older consumers’ loyalty towards older brands in grocery retailing," Journal of Retailing and Consumer Services, Elsevier, vol. 52(C).
    15. Beatrice Luceri & Sabrina Latusi & Elisa Martinelli, 2014. "L?acquirente cross-format: modelli di mobilit? nel rocery," MERCATI & COMPETITIVIT?, FrancoAngeli Editore, vol. 2014(3), pages 19-39.
    16. Takumi Kato & Nobu Takenaka & Rie Ito & Kazuki Nishiguchi, 2023. "Selection versus scale: Loyalty indices for brand management," Journal of Marketing Analytics, Palgrave Macmillan, vol. 11(4), pages 836-853, December.
    17. Luceri, Beatrice & Latusi, Sabrina, 2012. "The importance of consumer characteristics and market structure variables in driving multiple store patronage," Journal of Retailing and Consumer Services, Elsevier, vol. 19(5), pages 519-525.
    18. Mark Legg & Murat Hancer, 2020. "How patrons value casino promotional offers: A conjoint study," Tourism Economics, , vol. 26(4), pages 640-657, June.
    19. Maruyama, Masayoshi & Wu, Lihui, 2014. "Multiple store patronage: The effects of store characteristics," Journal of Retailing and Consumer Services, Elsevier, vol. 21(4), pages 601-609.
    20. Tiphaine Gorlier & Géraldine Michel, 2020. "How special rewards in loyalty programs enrich consumer–brand relationships: The role of self‐expansion," Post-Print hal-02494605, HAL.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:joreco:v:43:y:2018:i:c:p:119-130. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/journal-of-retailing-and-consumer-services .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.