8
CHAPTER II LITERATURE REVIEW
2.1 Convenience Store and Retail Industry
The retailing is being more service oriented. Hence, gives various types of experience to the customers as they visit them and specifically in
case of grocery products. The experience is the perception which the customers have about the service quality offered by the retailers to them.
Different retail formats add to different customers’ experience. The understanding of these experiences is of critical issue for retail managers
because it helps them to understand the patronage behaviour also Mittal, S. nd Gupta, A., 2012.
According to Fram and Axelrod 1990, while people are shopping, it is stressful for them. Whereas Aylott and Mitchell 1999 found that
customers associated more stress with grocery shopping than with other forms of shopping. Carpenter and Moore 2006 acknowledged that the
changing competitive landscape within the grocery industry makes it critical for retailers to better understand grocery customers. This includes an attempt
to examine customer choice with respect to store format and the store attributes that drive that choice.
Therefore, retail industry has a strong ties with modern convenience store, where people can easily find grocery products even the public
service.Modern convenience store is a small store which includes all sales
2.1 Convenie e
n nce Store and Retail Industry
The reta a
iling g
is bei i
ng ng m
m or
or e se
erv rvic
ic e
e or
or iented. Henc
c e,
e, gives various
ty types of e
e xp
x erienc
nc e to the custo
to me
me rs as they v
v is
isit them m
and spec ecifically in
case e
o o
f f
gr g
ocer r
y y
pr oducts. The
ex perience
is th
th e perc
rc ep
ep ti
tion o
whi i
ch c
the cu
cu st
st om
o ers
s ha
ve a bo
ut the servi ce
quality offer ed
by th
he e
reta ta
il l
er ers
s to the hem.
Di D
ffer r
en t retail forma
ts add
to differen
t customers’
e e
xp x
er r
ie ienc
c e.
e. The
he und
de rs
ta nd
ing of these exp
er ienc
es is of critical issue for re
t tail m
m an
an ag
a ers
be e
ca use it helps
them to u
nd er
st an
d th e
patron age
be haviour al
so o Mittal
, , S
S. nd
d Gupta, A.
, 2012.
Ac c
co co
rd rd
in ing
g to
to F
F ra
r m an
n d
d Axelro
o d
d 199 9
, ,
wh wh
il il
e e
pe pe
op o
le a re
shopping, g, i
t t
is stressful for them. Whereas s
Aylott and Mitchell 1999 foun n
d d
th tha
at cu
c st
t om
om er
er s
s as
as so
so ci
ci at
at ed
ed m
m or
or e
e stress with
h gr
gr oc
oc er
er y
y sh
sh op
op pi
pi ng
ng t
t ha
han wi wi
th th o
o th
ther fo
form r
s of s s
ho ho
pp pp
i ing.
g. C
C ar
ar pe
pe nter
r a a
nd nd
Moo o
re re
20 20
06 06
ac ac
kn k
owledg dg
ed ed
t t
h hat the
chan i
ging competitive landsca a
p pe withi
hin the grocery industry makes it critical for retailers to better underst
tand grocer ry customers. This includes an attempt
to examine customer choice e with r
respect to store format and the store attributes that drive that choice.
9 through stores of areas, generally less than 300 sq. meters, which specialize in
a limited range of food and grocery products designed primarily for convenience-seeking consumers Canadean, 2014.According to Anderson
1971, p. 179, convenience-oriented consumption: 1 satisfies some immediate want or need and 2 releases time or energy or both for alternative
uses. Marketers are becoming more sensitive to saving consumers’ time and effort by designing convenience offerings, rewarding time spent with
marketing i.e., providing genuine entertainment, significant consumer information, andor valuable tools from which consumers can benefit, and
giving time back to consumers Smith 2004. Despite the acknowledged importance of convenience, it has received
relative attention in the retailing literature. Most of the studies focus on the convenience orientation of consumers Anderson, 1972, 1971; Brown, 1989;
Bucklin, 1963; Gross and Sheth, 1989; Kelley, 1958; Morganosky, 1986; Nickols and Fox, 1983; Reilly, 1982; Yale and Venkatesh, 1986. These
studies view convenience as anything that helps the consumer to reduce its time and effort during their shopping process, but are mostly focused on the
product market. On one hand, the lives of consumers have become more complex with
less time for shopping Bellizzi and Hite, 1986. Additionally, more women are working outside their homes, which means less time to go shopping but
more income Bellante and Foster, 1984; Strober and Weingberg, 1980. Also, more people are living by themselves in smaller families and even
convenience-seeking cons ns
um umers Can
ad ad
ea ea
n, 2014.According to Anderson 1971, p. 179
9, convenience-oriented consump p
ti ti
on o
: 1 satisfies some immediat
ate want or need and nd
2 2
r r
el l
ea ea
se se
s s
time m
or energy or bo
bo th for alternative
us s
e es. Marketers
a are
e be
be coming more sens
it itiv
v e
e to to s
s av
aving consumer ers’ time and
effort b b
y y
de d
signin in
g g conv
enience offerings, r
r ewardi
ding ng t
t im
im e spen
ent with ma
ma rk
rk et
eti ing
i .e.,
p roviding gen
ui ne entertainment,
si s
gnif if
ic c
an an
t t co
c nsum
umer in
in fo
form m
a at
ion, andor va
luable too ls
from wh ic
h consumer
s ca
c n be
bene nefit, an
n d
gi vi
n ng t
ime back to cons um
ers S mi
th 2004. Despit
e th
e acknow le
dged i
mp orta
nc e of
c on
ve nience, it
h h
as receive ved
d re
e la
tive attention in th
e reta
il ing litera
tu re. Mo
st of the studies fo
focus on on the
he co
co nv
n en
ie nce or
ie e
nt nt
at at
io io
n n
of of
consumers An
An de
de rs
rs on
on, 19
1 72
, 19
71 ;
Br Brow
own, 198 98
9; 9;
Bucklin, 1963; Gross and She he
th th
, 19
1989; Kelley, 1958; Morganosky, 19 19
86 86
; Ni
Ni ck
c ols and Fox, 1983; Reilly, 1982; Yale and Venkatesh, 198
98 6
6. . Th
Th e
ese stud
d i
ies i
view con on
ve veni
nience a s
s an
an yt
yt hi
hing ng
t t
h hat he
h lp lp
s s
th the
e consumer to re
redu du
c ce its
ti ti
me me
and e e
ff ff
or or
t t during their s
s ho
h pping
g p
process, but are e
m m
ostly y
fo fo
cu cused on the
product market. On one hand, the lives
s of consu umers have become more complex with
less time for shopping Bellizzi zi and
d Hite, 1986. Additionally, more women are working outside their homes which means less time to go shopping but
10 alone Yale and Venkatesh, 1986.All these conditions have led consumers to
look for new ways to simplify their lives in a modern and stressful environment.
Buying time refers to purchasing certain types of products or services which can then be substituted for time Berry, 1979. Time can be bought and
sold in the marketplace in the form of convenience products e.g., frozen dinners, disposable cleaning products, and ready-to-eat cereals, convenience
services e.g., child care, meal delivery, household cleaning services, and lawn care, and convenience durables e.g., dishwashers, refrigerators,
freezers, microwaves, stoves, washers, and dryers. One of the primary motivations behind purchasing convenience products, services, and durables
is to save time. No true time savings exist in that time saved in the past unlike money saved in the past cannot be accessed for use in the future
Wilson and Holman 1984. Regarding the effect of price on store choice, although some research
has found a positive relationship between monetary price and perceptions of product quality Dodds et al., 1991. This may be explained because
consumer’s responses to low prices may vary depending on the product category and retail format. Furthermore, consumer’s perception of product
and service quality is also found to be positively related to the store patronage Baker et al., 2002; Darley and Lim, 1993; Sirohi and McLaughlin, 1998;
Zeithaml and Berry, 1996. environment.
Buying g
t t
im ime refers to purchasing certain typ
pes e
of products or services which ca
ca n
n then be substitute te
d fo fo
r r
ti i
me me
Be Be
rr rr
y, 1979. Time e
c c
an be bought and so
o ld
ld in the mark rk
et tp
plac a
e in the form of con on
ve ve
ni nien
ence products e
.g., frozen dinner
r s,
s, d
d is
s po
p sable
e cl
cl ea
ning produ ct
s, and rea dy
dy -to-eat
t c cer
er ea
ea ls
l , conve
venience se
e rv
rv ic
ic es
e e.
. g
g. , ch
il d care, meal
d elivery, house
ho ld
c c
le l
anin i
g g se
serv rv
ic i
es, and
la lawn c
c ar
e , and co
nv enience
du rables
e. g.
, dishwash er
ers, r r
ef ef
ri rig
gerators rs,
fr ee
z ze
rs, microwaves,
st ov
es, wa
shers, and
dryers. One of
f the e
p p
ri ri
m mary
mo o
ti vations be
hi nd purch
as in
g co
nv en
ienc e produc
ts , services,
a and du
d rabl
l es
es is
t o save time. No
tr ue
t im
e saving s
exist in
that time saved in the
e pas st
u u
n nlik
e mone y
y sa
sa ve
ve d
d in
in t
t he
h past canno
o t
t be
be a
a cc
cc es
es sed fo
r use in
in t
the fut t
ur ure
e Wilson and Holman 1984.
Regarding the effect of price on store choice, although so o
m me r
r es
esea ear
rch has
f foun
d d a po
o si
si ti
ti ve
ve r el
ations ns
hi hi
p p be
betw twe
een mone ne
ta ta
ry ry
p p
i rice a
d nd perce
ce pt
ptio io
ns of
pr pr
od od
uc t
qu qu
al al
it ity Dodds et
al., 199 9
1 1. This may
b b
e e
ex p
plai ai
ne ne
d d because
consumer’s responses to lo ow prices m
may vary depending on the product category and retail format. F
Furthermo ore, consumer’s perception of product
and service quality is also foun d
d to b
be positively related to the store patronage Baker et al
2002; Darley and L
Lim 1993; Sirohi and McLaughlin 1998;
11 Consumers perceptions of convenience is found to have a positive
effect on their satisfaction with the service provided Berry et al., 2002. In a retailing context, although there is no one clear definition of a convenience
store, for the purpose of this paper we will define it as a small, centrally located store, featuring ease of access, late-night hours, and a limited line of
merchandise, and that charges above-average prices compared to large supermarkets that generate large volume sales. Only a limited number of
academic papers have specifically investigated the c-store industry Lassk, 2000; Rapp and Islam, 2006; Sparks, 2000; Sutton and Rafaeli, 1988; Welsh
et al., 2003; Worthington, 1989. This research suggests series of attributes that are salient for providing customer satisfaction with c-stores, such as
customer service, cleanliness of the store, feelings of personal safety, appearance of the store and employees, and product assortment.
Access convenience concerns the speed and ease with which consumers can reach a retailer. It considers attributes such as accessible
location, parking availability, store hours, proximity to other stores, and telephone and internet access. The speed and ease that consumers can make
contact with retailers powerfully influence their retail choices. Empirical evidence shows that easy accessibility has a high correlation with the choice
of a shopping centre Bellenger et al., 1977. In addition to a convenient location, other convenience incentives provided by retailers, such as longer
operating hours or ample parking, can draw patrons to a store Hansen and Deutscher, 1977.
retailing context, althoug ug
h h
th there is no on
one e
clear definition of a convenience store, for the p
p u
urpose of this paper we will def f
in ine
e it as a small, centrally
located st store, featuring eas
s e
e of of
a a
cc c
es es
s, s,
l l
ate- e
night hours, a nd
nd a limited line of
me me
rchandise, and nd
t t
ha ha
t charges above-av e
erag ag
e e p
prices compa re
red to large superm
m ar
arke ke
ts ts
that ge
ge ne
rate large v
olume sa le
le s.
s. Only
y a
a li
li mi
m ted nu
mb m
er of ac
c ad
ad em
em ic p
p a
aper s
ha ve specificall
y investigated t
he c
-s -sto
t re ind
ndus ustr
tr y
y Las
assk, 20
20 00; R
Ra pp and Islam
, 2006; Spar
ks , 2000;
Su tt
on and R af
f ae
aeli, 19 19
88 88
; Wels s
h h
et a
a l
l. ,
20 03; Worthingto
n, 1989
. Th
is res ea
rc h suggests ser
ie e
s s
of f
a att
tt ri
ri bu
b tes
tha at
are salient for providi ng
c us
tome r
satisfac ti
on w
ith c-st or
res, such a
s s
cu u
st omer service, cl
ea nlin
es s of the store
, fe
elings of pers o
onal sa afety
y, ap
ap pe
p arance o
f th
h e
e st
st or
or e
e an
an d
d employees, a
a nd
nd p
p ro
ro du
du ct
ct a
ss or
tm ent.
Access convenience c co
once ce
r rns the speed and ease with wh
wh ic
ic h
h co
cons n
umers can reach a retailer. It considers attributes such a a
s s
ac ce
cess sib
ible locati
i on, pa
k rk
in ing
g av
availabili li
ty ty
, , st
st or
ore e ho
hours, pro roxi
xi mi
mi ty
ty t
to t
ot h
her st t
or or
es es
, and te
te le
le ph
ph one an
an d
d i
internet access s. The spe
peed and ease th that
at c
c onsume
me rs
rs can make contact with retailers powe
erfully influ uence their retail choices. Empirical
evidence shows that easy acc cessibility
y has a high correlation with the choice of a shopping centre Bellenge
ger et t
al., 1977. In addition to a convenient location other convenience incent
n ives provided by retailers such as longer
12 A convenient location is one which minimizes consumer time and
effort associated with traveling to the store Jones, Mothersbaugh, and Beatty 2003. In searching for a convenient location, retailers should look for a
location that is easy to get to, near to most consumers, and located near other frequently visited stores Seiders, Berry, and Gresham 2000. Access
convenience provides place utility--the benefit and value of having the product available at a place where consumers want or need it. By selecting a
convenient location, retailers are ensuring that the consumer can get to the store and the product in a quick and easy manner. One aspect of access
convenience which is often challenging is finding a parking space after arriving at the store’s location.
Search convenience is the speed and ease with which consumers identify and select products they wish to buy. This dimension considers
helping consumers find the right products through focused merchandising, intelligent store design and layout, knowledgeable sales persons, customer
interactive systems, and visual merchandising practices, especially product displays, packaging, and signage. One study found that when shopping at
convenience stores, customers want courteous and helpful clerks, but not too friendly so that they don’t engage in extended conversations Sutton and
Rafaeli, 1988. Other literature suggests that consumer’s evaluations of the store atmosphere also affects their perceptions of value and their store
patronage intentions Grewal et al., 2003. 2003. In searching for a
a convenient l
l oc
oc ation, retailers should look for a
location that is s
e easy to get to, near to most consum
m er
er s, and located near other
frequent t
ly ly visited stores S
S ei
ei de
d rs
rs ,
, Be B
rr ry
y, and Gresham am 2000. Access
co o
n nvenience prov
ov id
id es
s place utility--the be
be ne
ne fi
fi t
t a
and value of of having the
produc uc
t t
av av
ai ai
l lable at
at a
a p
lace where consumers
w w
an a
t or n nee
eed d
it it
. By sel lec
e ting a
co o
nv nv
en en
ie nt
l l
oc ation, retailers are
e nsuring that
t he c
on nsu
s mer ca
ca n
n ge
g t to
o the st
st o
ore a a
nd the produ ct
in a qui ck
and eas y
ma nner. One
as a
pect ct
o o
f acce s
ss conv
v enie
nce which is o
ften cha ll
enging i
s finding a park in
n g
g sp
p ac
ac e
e after
arr ri
vi ng at the
stor e’s locati
on .
Search conve ni
ence is the sp eed
an d ease with whic
h consu
umer rs
id id
e enti
fy a nd
s el
l ec
ec t
t pr
pr od
od uc
uc ts they wish
h t
t o
o bu
bu y
y. T
T hi
s di
mens io
o n
n consid d
er er
s s
helping consumers find the r ig
ight h
p p
r roducts through focused merchand
d is
isin in
g g,
in in
te t
lligent store design and layout, knowledgeable sales persons ns, cu
u s
stom om
er intera
t ct
i ive
sy st
stem ems
s, a nd
v is
is ua
ual l me
merc rcha
handising g
pr prac
acti tices,
e sp
eciall l
y y pr
pr o
oduct di
di sp
sp lays
y , pa
pa ck
ckaging, and sig g
na n
ge. On ne study foun
d d
th th
at at
when n
sh shopping at
convenience stores, custome ers want cou
urteous and helpful clerks, but not too friendly so that they don’t
engage i n
n extended conversations Sutton and Rafaeli, 1988. Other literature
e sug
g g
gests that consumer’s evaluations of the store atmosphere also affects th
h eir perceptions of value and their store
13 Possession convenience is the speed and ease with which consumers
can obtain desired products. It results from a retailer’s strong in-stock position, timely production or timely delivery. One stop shopping offers
consumers possession convenience by bringing together a vast variety of goods and services in one store. Bianchi, C., 2009 The literature supports
this and several studies have found that merchandise assortment is positively related to retail store choice Arnold et al., 1983; Koelemeijer and Oppewal,
1999; Louviere and Gaeth, 1987, and is found in some cases even more important than price for store choice Stassen et al., 1999. Also included
within the scope of search convenience are effective interactive customer systems, product displays, and helpful salespeople. Allowing consumers to
see and easily find the merchandise they desire is a sure way to speed up and simplify the shopping experience.
Transaction convenience refers to the speed and ease with which consumers can effect or amend transactions. Once the consumers selects a
store, and selects the products they want to purchase, they still must participate in a transaction to complete the purchase. Transaction convenience
concerns how quickly and easy it is to do the business with a firm, and considers attributes such as different payment methods, quick service, well
trained employees, and well-designed service systems. Time savings elements for consumers such as fast checkouts are also found to influence their retail
choice Lambert, 1979. position, timely product
t io
io n
n or timely de
de livery. One stop shopping offers
consumers poss ss
e ession convenience by bringing
t t
og og
ether a vast variety of goods an
an d
d services in one st s
or o
e. e.
Bi Bi
an an
ch c
i, i,
C., 2009 The l
l iterature supports
this is
and several s
s tu
ud dies
e have found that mer
er ch
ch an
andi di
s se assortment
t is
i positively
related d to
to r r
et et
ail stor or
e e
ch oice Arnold et al.,
1 98
98 3;
3; Koele
le me
me ij
ij e
er and O Opp
p ewal,
19 19
99 99
; ; L
Louv v
ie iere
a nd
Gaeth, 1987 ,
and is foun d
in s om
ome ca a
se ses
s ev ev
en m more
im im
p port
t a
an t than price
f or store c
ho ice Stassen et al., 199
9 9. Al
lso so
i include
e d
with h
i in
the scope of se ar
ch con
ve nience
are effective inter
ac c
ti t
ve c c
us us
to to
mer sy
y s
st ems, pro
du ct
d isplays,
a nd
hel pful
s alespeop
le .
Al lowing
c on
o sumers
t to
o se
e e
and easily find the me
rc ha
ndise th ey
d esir
e is
a sure way to s
p peed u
u p
p an d
d si
si m
mp lify t
he s
ho pp
pp in
in g
g ex
ex pe
pe ri
r ence.
Transaction convenienc ce
e re re
fe fers to the speed and ease with wh
wh ic
ic h
h co
cons n
umers can effect or amend transactions. Once the consume me
rs rs sel
elec ects
ts a store,
a d
nd s
el elec
ec ts
ts t t
h he pro
du duct
cts s
th they
ey want
to to p
p ur
u h chase,
t t
h hey st
st il
ill l
must pa
pa rt
rt ic
p ipate in
in a
a transaction to co
c mplete
e the purchase. T
T ra
ra ns
n action
on c
c o
onvenience concerns how quickly and
easy it is to do the business with a firm, and
considers attributes such as d
d ifferent p
payment methods, quick service, well trained employees, and well-de
si s
gned ed service systems. Time savings elements
for consumers such as fast check k
o outs are also found to influence their retail
14 In addition, consumers also enjoy talking to salespeople, and seek a
social experience outside their home, thus this may drive some shoppers to stores in which they find friendly salespeople Tauber, 1972. In fact a one
study found that there is a positive correlation between consumer’s perceived warmth of the service clerk and perceived quality and loyalty to the store
Lemmink and Mattsson, 1998. Schmitt 2003 contends that consumers want to be sold on more than just attributes; they want to be entertained,
stimulated, emotionally affected and creatively challenged. In order to appeal to the emotions of the consumer, the experience must be conveyed. Grewal,
Dhruv, Julie , Michael and Glenn. 2003, Understanding and enhancing the customer experience is important, most marketing executives in consumer
packaged goods, manufacturing and retailing fields consider it important and thus an area for academic research.
2.2 Adolescent’s Perception on Modern Convenience Store