Convenience Store and Retail Industry Convenie e

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