Retail format selection in on-the-go shopping situations

• Main Authors: BENOIT, Sabine, EVANSCHITZKY, Heiner, TELLER, Christoph
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2019
• Subjects: Retail format; Shopping situation; Experiments; Food; Choice; On-the-go consumption; Marketing; Sales and Merchandising
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/7586; https://ink.library.smu.edu.sg/context/lkcsb_research/article/8585/viewcontent/RetailFormat_On_the_Go_Shopping_av.pdf
• Institution: Singapore Management University

Consumers patronize different store formats to purchase products. Prior literature describes store and format choices for big, multi-item shopping baskets, but limited insights determine consumers' unique shopping routines when they seek to buy just one or a few items while on the go. Such shopping situations might affect consumers' format selections for both search and experience goods. This study uses multi-attribute utility theory to develop a framework, tested with a scenario-based experiment. For search goods, a format's economic utility (price level, speed) is more important; its functional utility (quality, variety) and psychological utility (atmosphere, service) become less important considerations. Furthermore, the tolerable range of formats is larger for search goods. The level of on-the-go purchase and consumption frequency moderates these effects. Therefore, this research helps to clarify what drives consumers' format selections in on-the-go shopping situations, with useful managerial insights for how retailers can compete in the growing on-the-go market.