Factors That Affect Shopping Behaviors between Different Customers in Supermarkets - Research Paper Example

16 | ID Table of Contents Introduction 3 1 ment of the Problem 3 2 The Aim and Objectives 3 3 Rationales 32. Literature Review 4 3. Research Methodology 3.1 Research Design 6 3.2 Research Setting.....................................................................................................6 3.3 Sampling................................................................................................................. 3.4 Tools of Data Collection......................................................................................... 3.5 Pilot Study 3.6 Ethical Issues 4. Data Analysis Findings 7 5. Data Analysis Discussion 9 References 10 Appendix 1 12 Appendix 2 13 1. Introduction 1.1 Statement of the Problem Pontypridd is a small city in the UK, with a approximate population of 79,900 people as of 2007 (Dolman 2010). While the population is not as big as in other cities, there are many different supermarkets available for Pontypridd’s citizens for satisfying their shopping needs. Every supermarket has different strategy and therefore is positioning itself on the market differently. Some supermarkets focus on offering products of the highest quality, some focus on offering the lowest prices and good discounts, some focus on excellent customer service, and others tend to integrate all these aspects to their strategies. Based on their needs and priorities, customers tend to have their own favourite supermarket. As there is a lack of empirical evidence of what specific criteria do have students while choosing a supermarket in Pontrypridd. 1.2 The Aim and Objectives The aim of the business research is to investigate what specific factors attract customers to supermarkets and what criteria they use while choosing the supermarket for shopping. This research project is an investigation into customer’s behavior and attitudes towards different supermarkets in Pontrypridd. The objectives of this research are: Identification of the factor/criteria that is the most important to customers when they choose what supermarket to visit for shopping; Assessment of which supermarket is the most popular among customers in PontyPridd 1.3 Rationales The purpose of this research is to investigate what factors influence on the consumer’s choice of the supermarkets and what criteria are the most important in this choice. The importance of this research to: The residents and students in Pontypridd area Residents and students of the Pontipridd will get the information on their supermarkets of preference. The management of supermarkets Managers who operate and manage supermarkets in Pontypridd will get an idea of the factors that influence on the consumer’s behavior while making a choice in which supermarket to do shopping. Based on this information, management will be enabled to adjust their business strategies in order to better satisfy customer’s needs. 2. Literature Review The supermarket industry has grown significantly across the UK over the recent decades. The viability of small family-type grocery stores has been strongly challenged by the growth of national and international supermarket chains across the country (Beynom, Moutinho, & Veloutsou, 2010). The existing studies on consumers’ decision making process of where to do shopping indicate that the following influence factors may influence on consumers’ choice of supermarkets: quality produce, merchandise assortment, layout and organization of supermarkets, social class, age, gender, the type of family unit, lifestyle, working hours, etc. (Beynom, Moutinho, & Veloutsou, 2010; Hansen, 2011; Narhinen, Nissinen, & Puska, 2000; Richbell & Kite, 2007). Some of these factors are discussed below in more details. Gender It is not a secret that males and females have different consumer behaviors, whereas men are goal-oriented, and women are socially oriented. The factors that women commonly take into consideration while shopping include convenience, environment of the supermarket, displays, and consumer service (Beynom, Moutinho, & Veloutsou, 2010). Women are classified as the “recreational shoppers” who tend to undertake impulsive shopping, enjoy the process of shopping and perceive shopping as leisure time (Dobson & Ness 2009). Men, on the contrary, are classified as “convenience shoppers” who strive to minimize their time for shopping (Dobson & Ness 2009). Men tend to be more practical, perceiving supermarket as a location for buying food, beverages, and other goods, and the faster they can do it, the better. Food shopping Pontypridd is a city with a significant number of undergraduate students who automatically become a target audience of many supermarkets. Therefore, segmentation of customers is a critical issue in understanding the consumers’ shopping behavior. Student lifestyles significantly differ from the lifestyle of adults and families, as they often lack sufficient funds for housing and living (Dobson & Ness 2009). This segment doesn’t care much about their health in young age that is why their typical diet is often comprised of fast foods, baked beans, chips, etc. (Mintel 2006). However, with increasing health awareness and weight concerns, more students tend to admit the importance of healthy nutrition, even though it is costly, less convenient and time consuming (Dobson & Ness 2009). According to Mintel (2006) more students tend to cook meals at home, whereas: almost 50% of students stated that they liked cooking at home, with females being more supportive to this statement than males (56% versus 43%). Ness, Gorton, & Kuznesof (2002) have also found that food shopping of students is correlated with the cost of their accommodation. The cheaper the accommodation is, the greater is the disposable income of the students, which they can spend on food shopping Organization The organization is another factor that may influence of the customer’s choice of supermarkets. Design, atmosphere, products layout, breadth of the corridors are the factors that contribute to the overall customer’s perception. Goidanich & Rial (2012, 148) have suggested that knowledge of the customer of the location of products in a store was an important factor when choosing where to shop. Therefore, illogical placement or layout of products and other goods may cause irritation and confusion among shoppers and result in change of their choice of preferred supermarket. The overall design, space, width of the corridors, lighting, overall atmosphere are all the factors that influence on the shopper’s choice (Goidanich & Rial 2012). Quality and assortment of produce The quality and assortment of produce especially food produce is also an important factor that influences on the customers’ choice of the supermarkets (Narhinen, Nissinen, & Puska, 2000). As Matsa (2011) explains, maintaining of the optimal product availability is one of the characteristics of supermarkets. Extensive range and assortment of the products also plays an important role as it offers to the customer product and goods of different quality and price range, thus attracting consumers of different income levels (Harvey 2006). 3. Research Methodology This section provides details on the research methodology of the study with an overview of the research design, research setting, sample, pilot study, tools of data collection, and ethical issues. Research design In order to achieve the primary aim and other objectives of the research there was chosen a survey as a research method, whereas respondents were asked to complete a questionnaire, answering to the questions relevant to the study. The researcher deemed survey approach to be suitable for gaining a better understanding of what factors influence on the Pontrypridd’s population when they choose the supermarket for shopping. Research procedure The research was done using primary survey method where an interviewing of 50 respondents was carried out in order to understand the factors that influence on student’s choice of supermarkets in Pontrypridd and to assess their preferences among the variety of supermarkets available in the city. The questionnaire had a close ended structure, however they were informed that they could ask questions in case something was not clear to them or they were willing to specify something (See Appendice 1). The respondents were the students of the University in Pontrypridd. In order to ensure the quality of the research, respondents were selected in random manner from the University campus. Research setting Data for this study was collected in the University of South Wales in Pontrypridd. Sampling Sample of the present study was comprised of the students studying at the University of Pontypridd and several non students. The age of population varied between 18-30 years old and included both genders: males and females. Convenience sampling was used because questionnaires were distributed to students and non-students who attended the University of South Wales in Pontrypridd. Tools of data collection In order to obtain data relevant to the study’s aims and research questions, there were used questionnaires in the study. Questionnaire is one of the instruments of data collection which enables the researcher to gather information from respondents about attitudes, believes, knowledge, and feelings (Polit and Hungler 1997, 466). The questionnaire was designed to gather information about student’s and non-student’s attitudes to the supermarkets and preferences of locations for shopping. The literature review indicated that there were number of factors influencing on the cosnumer’s shopping behaviour and choice of the supermarket. The questionnaire was based on the literature review findings. Pilot Study In order to ensure the accuracy and therefore quality of the survey as a data collection method and to define and eliminate any arising confusions in the questions, the researcher has carried out a pilot study. For the pilot study the research methodology applied was the same as presented below, whereas sample of 10 students randomly selected filled in the questionnaires (See Appendice 1).No problems were encountered during the pilot study. Ethical issues It was important to keep confidentiality of the research and thus to ensure confidentiality to the respondents. For this purpose private information which included names and contact information of the respondents has been withheld. Thus, the research ensures adherence to the ethical standards and encourages respondents to provide honest answers to the questions. The issue of confidentiality has been verbally agreed with the respondents before they began to fill in the questionnaires. 4. Findings The findings of the study can be divided into several key categories, including: demographics info; respondent’s preference to shop at a store or online; respondent’s preference of cooking at home; preferred frequency of shopping; preferred supermarket brands; factors that influence respondent’s choice of supermarket, including the following: reasonable prices; variety of assortment, service delivery. Demographics of the sample - Differentiation of survey respondents by two key criteria: gender, and status (student/not student). The findings of the study have shown that out of 50 respondents in total, 30 were women and 20 were men. Thus, the percentage share of female gender was 60 percent, and the rest, 40 percent were males. Also, the share of respondents that were not students was equal to 16 percent while the rest, 84 percent were students. Graph 1. Gender Distribution in the Study Graph 2. Student and Non Student Distribution in the Study Respondent’s preference to shop at a store or online The findings have shown that 23 respondents out of 50 interviewed indicated that they prefer shopping at the store, and 27 respondents indicated that they prefer shopping online. Thus, the share of the respondents preferring to shop online was greater (54 percent) then the share of respondents preferring to shop at the store (46 percent). Table 1 provides a detailed breakdown of both categories of respondents (See Appendix 2). Table 1. Preference of shopping online or at store Preference of Store Or Online Shopping Frequency Percent Valid Percent Cumulative Percent Valid A 23 46.0 46.0 46.0 B 27 54.0 54.0 100.0 Total 50 100.0 100.0 Graph 3. Graph of Preference To Shop Online or at a Store Respondent’s preference of cooking at home The findings have shown that 26 respondents out of 50 preferred cooking at home/dormitory, while the rest, 24 respondents indicate they did not, implying that either they preferred buying cooked food or food that doesn’t need preparation and/or eating out somewhere else. Table 2 provides a detailed breakdown of respondent’s answers (see Appendix 2). Table 2 . Preference of Cooking and Not Cooking. Cooking or not cooking Frequency Percent Valid Percent Cumulative Percent Valid A 26 52.0 52.0 52.0 B 24 48.0 48.0 100.0 Total 50 100.0 100.0 Graph 4. Chart of Preference of Cooking and Not Cooking. Frequency of shopping at supermarkets The findings of the research have shown that only 12 respondents did shopping daily, 6 respondents did shopping twice a week, 15 respondents did shopping weekly, 17 respondents shopped when they saw fit. Table 3 provides a detailed breakdown of respondent’s answers on their preference of frequency of shopping (see Appendix 2). Table 3. Frequency of Supermarket Shopping Frequency Of Supermarket Shopping Frequency Percent Valid Percent Cumulative Percent Valid A 12 24.0 24.0 24.0 B 15 30.0 30.0 54.0 C 6 12.0 12.0 66.0 D 17 34.0 34.0 100.0 Total 50 100.0 100.0 Graph 5. Graph of Frequency of Supermarket Shopping Preferred supermarket brands Respondents were offered multiple choice questions in order to answer which brand of the supermarkets they preferred the most for shopping. The findings have shown that Iceland was the most popular supermarket among its competitors, as 17 respondents (34%) have chosen this supermarket. Tesco also was popular among respondents, as 13 individuals have preferred this supermarket. Sainsbury turned out to be slightly less popular than Tesco, as only 11 respondents preferred to do shopping there. The least popular supermarket was ASDA, as only 7 respondents preferred this supermarket. Out of 50 respondents, 2 respondents have indicated that they prefer shopping in other supermarkets than those that were listed in the questionnaire. See Table 4 for more details (See Appendix 2). Table 4: Preferred Supermarket Preferred Supermarket Frequency Percent Valid Percent Cumulative Percent Valid A 13 26.0 26.0 26.0 B 17 34.0 34.0 60.0 C 11 22.0 22.0 82.0 D 7 14.0 14.0 96.0 E 2 4.0 4.0 100.0 Total 50 100.0 100.0 Graph 6. Graph of Preferred Supermarket Factors that influence on the respondent’s choice of a supermarket The most important factor was perceived to be distance (location) for 15 respondents, while for 12 price was an important factor for choosing a supermarket for shopping. Also, 14 respondents indicated that they were pursuing quality of products, while 9 respondents stressed the importance of the variety of products available. See Table 5 for more details (See Appendix 2). Table 5. The Most Important Factor in choosing a supermarket The Most Important Factor In Choosing a Supermarket Frequency Percent Valid Percent Cumulative Percent Valid A 15 30.0 30.0 30.0 B 12 24.0 24.0 54.0 C 14 28.0 28.0 82.0 D 9 18.0 18.0 100.0 Total 50 100.0 100.0 Graph 7. Graph Of The Most Important Factor When Choosing a Supermarket Preference of supermarkets by most reasonable prices, variety of assortment, best service delivery. The results of findings have shown that: Sainsburry, was perceived as the supermarkets with the most reasonable pricing (13) followed by ASDA and Tesco (12 and 11, respectively). Graph 8. Graph Of The Most Reasonably Priced Supermarkets Iceland, ASDA, and Tesco were perceived as the supermarkets with best quality food. Graph 9. Graph Of Respondents On Supermarket With Best Quality Food Iceland was the leader among supermarkets by the variety of assortment (15), followed by Sainsburry (14) and ASDA (11). Tesco was less preferred supermarket based on the variety criteria. Graph 10. Graph Of Respondents Reception On The Supermarket With The Greatest Variety ASDA was perceived as the supermarket with best service by 14 respondents; Sainsburry was slightly less popular for its service (12), as well as Tesco and Iceland (both 11). Graph 11. Graph of Respondents Perception on The Supermarket With The Best Service Delivery 5. Discussion and Analysis The findings of the research have provided some basic information and input data for further analysis and discussion. Sample of the respondents that have participated in the survey was quite effective as the majority of respondents were students. Proportion of the men and women participating in the study also is reasonable, as the right balance between the genders has been set up. Mainly this factor relates to the fact that females are more often cooking due to their historical role and therefore, they more often tend to visit supermarkets for shopping. Taking into consideration the statement discussed in the literature review section that women enjoy shopping much more than men and tend to spend more time in the stores they would provide quite reliable and knowledgeable responses. The fact that practically all respondents were students provides an insight for analysis of behaviour of this specific segment. It was interesting to learn that even in such a small city as Pontypridd such a high proportion of people (students) tend to shop online rather than do shopping at the store. The assumption is that the share of respondents preferring shopping online did order already cooked food such as pizza, beverages and other fast food rather than food products. This assumption can be correlated with the response of respondent’s preference not to cook at home. According to the study results, 24 respondents indicated that they did not cook. Either they preferred eating out of home or order food from the cafes and pizzerias. This assumption is supported with the literature review, whereas one of the researchers explains that many students prefer eating fast food, and tend not to care about their health in this age. Further findings have indicated that quite a significant proportion of respondents were shopping daily and twice a week; 17 respondents shopped when they saw fit. This statistics indicates that shopping at supermarket is quite popular activity among students and therefore, supermarkets could develop specific strategies or promotions for this segment. The questionnaire also has provided an understanding of which supermarket is more preferred among students. This statistics should be taken into consideration and might be used as a background for further research. One more important factor that has been revealed during the study was the fact that the majority of respondents considered location of the supermarket and distance a critical factor for their choice. Some other factors that were also important included pricing, variety of assortment, quality of products, and service. Conclusion The research has investigated what specific factors attract residents (mainly students) in Pontrypridd to supermarkets and what criteria do they use while making their choice of where to go for shopping. The results of the study have identified several major factors that were the most important among the respondents, including: location of the store, pricing, quality of products, and service delivery. Moreover, the results have helped to rate the number of the most popular supermarkets based on the above mention criteria. Thus, the findings have shown that Iceland was the most popular supermarket in Pontypridd, followed by Tesco. This information could be used as a basis for further research and also could be helpful for the managers of the local supermarkets for improving their promotion and marketing strategies. In my opinion this research was not only exciting practice where I had an opportunity to practice and improve my research skills, but also it was very helpful for developing my communication and analytical skills. The research required team working and extensive communication with various groups of people. It was challenging sometimes as it was fairly new project for me. However, I believe that the initial objectives have been achieved and I have learnt a lot from this project. References Beynon, M, Moutinho, L, & Veloutsou, C 2010, Gender differences in supermarket choice: An expositional analysis in the presence of ignorance using CaRBS, European Journal Of Marketing, 44, 1/2, p. 267, Publisher Provided Full Text Searching File, EBSCOhost, viewed 16 July 2014. Dobson, S, & Ness, M 2009, Undergraduate students attitudes towards food shopping and attitudes to time, International Journal Of Consumer Studies, 33, 6, pp. 659-668, Business Source Elite, EBSCOhost, viewed 16 July 2014. Dolman, R. 2010, ‘Key Statistics for Pontypridd May 2010’. 1st ed. [ebook] National Assembly of Wales. Available at: http://www.assemblywales.org/10-042.pdf [Accessed 16 Jul. 2014]. Goidanich, M, & Rial, C 2012, A Place Called Supermarket, International Review Of Social Research, 2, 1, pp. 143-155, Academic Search Complete, EBSCOhost, viewed 16 July 2014. Hansen, T. J. 2011. When supermarket consumers get stocked in the middle. International Journal of Retail and Distribution Management, 836-850. Harvey, M. (2000). Innovation and competition in UK supermarkets. Supply Chain Management: An International Journal, 5(1), pp.15--21. Narhinen, M., Nissinen, A., & Puska, P. 2000, ‘Healthier choices in a supermarket: The Municipal Food control can promote health’. British Food Journal, 99-108. Ness, M., Gorton, M., & Kuznesof, S. 2002, ‘The student food shopper: Segmentation on the basis of attitudes to store features and shopping behaviour’. British Food Journal, 506-525. Matsa, DA 2011, Competition and Product Quality in the Supermarket Industry, Quarterly Journal Of Economics, 126, 3, pp. 1539-1591, EconLit with Full Text, EBSCOhost, viewed 16 July 2014. Mintel, 2006, ‘Student lifestyles’. Mintel Marketing Intelligence, July. Polit,D F & Hungler B P, 1997 ‘Nursing research principles and methods’. Philadelphia, Lippincott Richbell, S., & Kite, V., 2007, ‘Night shoppers in the ‘open 24 hours’ supermarket: a profile’. International Journal of Retail and Distribution Management, 54-68 Appendix 1 Questionnaire survey There are many supermarkets in Pontypridd such as Tesco and Sainsbury. Every supermarket has a different character. Some supermarkets focus on cheaper items. Others may provide better service. According to different needs, customers have their own favorite supermarket. This questionnaire is to investigate students’ preference for supermarkets in Pontypridd. Thank you for taking some time to complete this questionnaire. 1. Are you a student of the University of South Wales? A. Yes B. No 2. Your sex: A. male B. female 3. You prefer shopping in the store or online? A. In the store B. Online 4. Do you usually cook? A. Yes B. No 5. How often do you shopping in the supermarket? A. Everyday B. Once a week C. Twice a week D. It depends 6. Which supermarket do you shopping most? A. Tesco B. Iceland C. Sainsbury D. ASDA E. Other ___ 7. Which is the most important factor when you choose a supermarket shopping? A. Distance from your home B. Cheaper price C. Quality products D. Variety of products 8. Which supermarket do you think is the most reasonably priced? A. Tesco B. Iceland C. Sainsbury D. ASDA E. Other ___ 9. Which supermarket do you think has the best quality food? A. Tesco B. Iceland C. Sainsbury D. ASDA E. Other ___ 10. Which supermarket do you think has the most variety of products? A. Tesco B. Iceland C. Sainsbury D. ASDA E. Other ___ 11. Which supermarket do you think have the best delivery service? A. Tesco B. Iceland C. Sainsbury D. ASDA E. Other ___ Appendix 2 Table 1. Preference of shopping online or at store Preference of Store Or Online Shopping Frequency Percent Valid Percent Cumulative Percent Valid A 23 46.0 46.0 46.0 B 27 54.0 54.0 100.0 Total 50 100.0 100.0 Table 2 . Preference of Cooking and Not Cooking. Cooking or not cooking Frequency Percent Valid Percent Cumulative Percent Valid A 26 52.0 52.0 52.0 B 24 48.0 48.0 100.0 Total 50 100.0 100.0 Table 3. Frequency of Supermarket Shopping Frequency Of Supermarket Shopping Frequency Percent Valid Percent Cumulative Percent Valid A 12 24.0 24.0 24.0 B 15 30.0 30.0 54.0 C 6 12.0 12.0 66.0 D 17 34.0 34.0 100.0 Total 50 100.0 100.0 Table 4: Preferred Supermarket Preferred Supermarket Frequency Percent Valid Percent Cumulative Percent Valid A 13 26.0 26.0 26.0 B 17 34.0 34.0 60.0 C 11 22.0 22.0 82.0 D 7 14.0 14.0 96.0 E 2 4.0 4.0 100.0 Total 50 100.0 100.0 Table 5. The Most Important Factor in choosing a supermarket The Most Important Factor In Choosing a Supermarket Frequency Percent Valid Percent Cumulative Percent Valid A 15 30.0 30.0 30.0 B 12 24.0 24.0 54.0 C 14 28.0 28.0 82.0 D 9 18.0 18.0 100.0 Total 50 100.0 100.0 Table 6. The Most Reasonably Priced Supermarkets Most Reasonably Priced Supermarket     Frequency Percent Valid Percent Cumulative Percent Valid A 12 24.0 24.0 24.0 B 11 22.0 22.0 46.0 C 13 26.0 26.0 72.0 D 12 24.0 24.0 96.0 E 2 4.0 4.0 100.0 Total 50 100.0 100.0   Table 7. Respondents Perception On Supermarket With Best Quality Food Best Quality Food     Frequency Percent Valid Percent Cumulative Percent Valid A 11 22.0 22.0 22.0 B 15 30.0 30.0 52.0 C 10 20.0 20.0 72.0 D 12 24.0 24.0 96.0 E 2 4.0 4.0 100.0 Total 50 100.0 100.0   Table 8. Respondents Perception on the Supermarket With The Best Service Delivery Best Service Delivery Frequency Percent Valid Percent Cumulative Percent Valid A 11 22.0 22.0 22.0 B 11 22.0 22.0 44.0 C 12 24.0 24.0 68.0 D 14 28.0 28.0 96.0 E 2 4.0 4.0 100.0 Total 50 100.0 100.0 Read More