Consumer Attitudes Towards Supermarkets - Research Paper Example

Consumer Attitudes Towards Supermarkets: An Empirical Study Introduction The process of consumers’ decision making is complex. Motives and barriers play an important role in coming up with a purchase decision or a repeat transaction. The tradeoffs that consumers make between values and products as well as consumer segmentation also their attitudes (Padel and Foster 2005). Consumer attitude and how firms can influence consumers are the key factors of success of businesses—particularly in the Supermarket Industry. Harvey (2000) noted that supermarkets in the UK have evolved distinctively, and that the recent years saw the industry treading a unique system of retailing. These developments hold the key in the effective assessment of the nature of competition in this market. The evaluation of consumer benefits using traditional tools may have become less appropriate nowadays. UK supermarkets have already departed from their conventional nature of having a basket of goods with a specific price and quality. The offerings are different in the modern times. Issues on the range of products, potential for innovation as well as the perceived convenience factor associated with the offerings are all part of the package. The lines that separate one element of the industry from the other have become blurred such that it is no longer unusual for one to ask what is competing with what and who is competing with whom. All these have materialised because of the shift in the consumer perceptions and attitudes that have evolved with time. Firms need to cope. The yardstick for survival is on how successfully a firm can win the favorable attitudes of consumers towards their products. Research Aims The primary aim of this research is to present a discussion of the factors that influence consumer attitudes towards supermarkets in the UK through a review of related literature and a survey from consumers in the industry. Research Objectives The following will be the objectives of the study: 1) To discuss the consumer attitudes and Fishbein model from a review of related literature and provide a critique. 2) To describe the current trend in the Supermarket industry as well as the three subjects UK supermarkets. 3) To identify factors that influence consumer attitudes towards supermarkets based on the results of a survey. Research Questions The following are the primary questions for this study: 1) How does the literature describe consumer attitudes and the theories of Fishbein? Is there anything questionable with what the literature says? 2) What is the current state of the Supermarket industry in UK? How are the subject supermarkets performing in the industry? 3) What are the factors that influence consumer attitudes towards supermarkets? Review of Literature Consumer Attitudes McEachern and Seaman (2005) suggest that the understanding of the consumer of product information as well as their interest and perceived credibility of the current systems in place would greatly help in understanding consumer attitudes. As the behaviour patterns in grocery shopping in supermarkets of the UK are expected to make a sharp turn in the aftermath of the recession and the recent advent of the limited line discounters, there are evidences that shopping patterns may be polarised. Schmidt et al (1994) believe markets may still be penetrated further by retailers but this is largely dependent on their ability to convince consumers from all segments and from all socio-economic groups to changed their behaviour so that they would start embarking on “two-stop shopping”. This means that the consumers will start frequenting a multiple retail stores on a regular basis (Schmidt, Segal, and Cartwright 1994). The study of consumer attitudes encompasses all ages. More importantly, the study should involve those that are profitable markets. One of which is the senior market. It is a mistake to ignore this segment because the senior market is becoming more lucrative because the seniors are occupying a big chunk of the population as older consumers come to control a greater proportion of national assets. It is safe to say that studying their attitudes in order to capture their market is as important. Pettigrew, Mizerski, and Donovan (2005) studied that experience of old shoppers with the purpose of identifying the issues that senior commonly care about. Among these is the demeanor of the supermarket employees, the functionally and convenience of the shopping equipment and the appropriate stocking and placement of products in the shelves. Such issues are personally relevant to the seniors and they are shared with others of their age brackets in general. The benefit of knowing the consumer attitudes is that it should serve as a tool for making the decisions that matters. Therefore, managers of supermarkets should develop strategies that will ensure that staff are hired and trained in such a manner that will enable them to engage in satisfying interactions with older customers. Products in the shelves should also be stacked and stocked in such a fashion that will not require over-reaching. The presence of well-designed and functional shopping aids, such as trolleys and baskets will also affect their attitudes towards shopping. Other issues that have been raised include the quality of the merchandise, the accessibility to the store and to its facilities once the senior is inside the supermarket, in-store amenities, options for home delivery, senior’s discount, and shorter queues. All these are highly regarded by the seniors. Retailers need to take seniors' needs into consideration in service provision in order to elicit their favorable attitudes. Another study is that of Laforet (2005) who conducted researched on the consumer fit perception, risks and brand trust in retail brand in the UK. The study employed a survey method of data gathering where about 324 residents in Sheffeld, UK served as respondents. These respondents were grouped according to loyal from non-loyal to the store, users from non-users of the store's financial services, aware from non-aware and intend-to-buy from no-intention-to-buy groups on fit, risks, trust dimensions. Findings of the study revealed that age, gender, income influenced fit, risks and trust perception. For example, those who are existing customers (also those who are aware and intending to buy the store's financial services) have a significant level of trust to the store. Newbies exhibit lack of confidence in the stores expertise in their brand and those who are new to the store or product perceived no fit. Fishbein Model One of the most appealing models used to understanding attitudes is the Fishbein model. Among the theorists of information-integration discipline, Fishbein may be considered as one of with the biggest impact. Along with Ajzen, Fishbein deemed the traditional views with attitudes and communication does not allow for a meaningful elaboration on the matter because terms connected therein are defined too generally such that there seemed to be loose ends, resulting in discussion less specific to the concept. The major problem was that the traditional view did not differentiate between attitude, behavioural intention, belief, subjective norms, and behaviour—terms, which Fishbein and Ajzen believe, that need to be differentiated from one another because even though these key terms play separate roles, they are all equally important in the prediction of actions (Bright et al. 1993). They also disagree that the receiver should be treated as a passive recipient of information. Therefore, they came up with a specific definition of attitude. They also treated the recipient as having an active role in the information exchange—one that can form opinions about the information being passed to him. The importance of the Fishbein's attitude theories is that it provides for the basis by which attitude may be clearly understood and behaviour may be accurately predicted. This is especially important in the aspect of communication. Having knowledge of such will give hints on how and what to prepare for persuasion to be more understood more. The sender towards the target audiences will also send belief-targeted message. Fishbein theories also helps in understanding the development and formation of attitudes and belief so that the most effective modes of persuasion and motivation will be employed because a good grasp on the concept of attitudes is a tool for effectively molding them (Bright et al 1993). Three theories comprise Fishbein's views on attitude. The first theory is the information and integration theory—one that focuses on how information are accumulated and organised by individuals. This theory maintains that all information has the potential to influence attitude based on valence and weight (Littlejohn 2002). Valence refers to the manner by which an individual compares information to his attitude. Weight, on the other hand, determines the magnitude the effect information has on an individual’s attitude. This holds that even if a statement have great valence to an individual, if it has little weight, then it would be of little impact. The second theory is the theory of expectancy-value. This holds that there are two kinds of belief: a belief in something and a belief about something. This theory states that beliefs vary from attitudes because of the fact that attitudes are evaluative. Beliefs and attitudes motivate one towards an attitude object. The third theory is what is popularly known as the Theory of Reasoned Action. Fishbein argues in this theory that behaviour is a product of the intentions and a complex outcome of attitudes (Littlejohn 2002). Interestingly, Fishbein also suggested a way of predicting attitude towards a behaviour in an equation form. He stated that in order to predict behaviour, one need to multiply the person's evaluation of each behaviour's consequences by the strength of the individuals’ belief that the behaviour will lead to those consequences. Summing up the product of each will give you the predicted attitudes. This is because people usually believe that their behaviour will lead to either positive or negative consequences. Attitude is determined on how favorable the set is in total (Fishbein & Ajzen 1980). This theory provides that information may influence attitude in three ways. One is that information can change the weight of a particular belief. Information can also affect the valence or direction of a particular belief. Information can also add new beliefs. Figure 1. Theory of Reasoned Action. Source: Fishbein, M., & Ajzen, I. (1975). Belief, attitude, intention, and behavior : An introduction to theory and research. Massachussetts: Addison-Wesley Publishing Co. Critique on the Fishbein model The Fishbein model gives a more specific treatment towards the understanding of attitudes and prediction of behaviour. The model provides for variables that influence consumers’ behaviour. It also gives an equation for predicting attitudes towards a behaviour. Nevertheless, there is still the issue of the model’s practical application. One problem is how to make the variables more objective. Objectivity is important in making the variables quantifiable so that the equation given would be stronger. The author recognises that such equation is not really intended to be in number form and be subjected to pencil pushing. However, such nature still makes the determination of attitudes arbitrary and may lead to varying results. Yet, the model gives a good way of understanding consumer attitudes and predicting behaviour compared to traditional definitions. UK Supermarkets This study scrutinised three UK supermarkets and how consumer attitudes are directed towards them. In general, supermarkets in the UK use four different promotional deals in order to boost their sales. These three also embark on these practices which include: price discounts, coupons, buy-one-get-one-free and product samples. In a study conducted by Gilbert and Jackaria (2002), 160 respondents were subjected to multi discriminant analysis in order to determine if there is a relationship between these consumer promotional approaches and the buying behaviour and attitudes of the consumers. The findings indicate that among the four, only price discount emerged statistically significant on buying behaviour. Purchase acceleration and product trial or sampling is found to be the most relevant influencer related to discounts. The buy-one-get-one-free approach proved to be insignificant. The study also maintained that brand switching and purchase acceleration are statistically significant. These findings imply that UK supermarkets need to be able to assess the current efficacy of the budget allocated to their promotional activities that are geared towards fostering favourable consumer attitudes towards their offerings and services (Gilbert and Jackaria 2002). Tesco Tesco is among the UK’s most successful supermarkets. It has always been a benchmark for development among supermarkets in the country. Most consumers perceive that the secret of Tesco’s success is living up with its advertisements. One of which is the strapline: Every little helps. Consumers have frequented Tesco’s stores for well-stocked, cheap products. More importantly, the increasing customer base of Tesco is highly credited to its increasing number of goods and services. These add-ons range from TVs to insurance, deckchairs to mobile phones (Strategic Direction 2005). Tesco is particular with the market psychology as well as the individual attitudes. Their stores are strategically laid out to capture the cognition of its consumers. It has played many wise tricks in terms of stocking of products. For instance, recognizing from the findings of the store card data that a large proportion of males are most likely to purchase nappies on Friday evening with the presumption that the mothers are on an evening out, Tesco displayed disposable nappies directly next to the four-packs of lager (Strategic Direction 2007). It was these innovations in retailing that grew this giant supermarket. Anchor and Kourivola (2009) that close consideration to consumer attitudes indeed played an important role in the expansion of this business. The authors did a study and found that the British customers have a positive attitude to Tesco and among the notable factors credited for it is income. Increase in income also leads to an increase in the favourability of British products among the British customers. Age is also found to be a factor but there is not a linear trend. Marks & Spencer Another top UK supermarket is Marks & Spencer, one that is usually modeled as a textbook example of good management practice. The supermarket started operations in 1884 by Michael Marks, a Russian immigrant who cannot even read or write. The business started in Leeds and all the goods can be purchased with a penny. Thomas Spencer came aboard in 1894 and helped Marks develop the store into a full blown retail supermarket. The company did not stop innovating not only in its clothing line but also in its fresh, chilled and convenience foods. It also later increased its offering to financial services and mail order markets (Kippenberger 1997). The case of Marks & Spencer is a good example of how a retailer can go global and reach international markets. The development of the UK’s leading retailer of food and fashion has been a subject of study by many business scholars. Among the lessons that can be learned with the decisions that Marks & Spencer made are the manner by which they choose their point of entry in a market entry in close consideration with the strategic routes that are made available to new markets. There is also the strategic fit between the acquired companies and the acquiring business. Perhaps, the most important lesson is how Marks & Spencer evolved from being a local retailer brand to an international brand. It is noticeable that there are significant differences that exist between the development of a retailer brand and that of a manufacturer brand in international markets (Whitehead 1994). Aldi Aldi is another supermarket popular in UK. It is a discount supermarket chain based in Germany. ALDI specialises in staple items such as toilet roll, food, sanitary articles, beverages, and other inexpensive household items. The store offers low-cost products of high quality and has been frequented by many British consumers. Methodology The approach to be used in this study is the quantitative appoach. Moreover, related literatures were reviewed to answer some of the research questions and address the research aims and objectives. The method of data collection will be through a survey using purposive sampling. Purposive sampling is deemed appropriate by the researcher because this will help in capturing respondents which have met predetermined criteria. Respondents answered a questionnaire that is based on the Fishbein model. It consists of questions about the beliefs of the consumers, their subjective norms, and behavioural intentions on top of the questions about their demographics. Their preferences were also explored as well as the products and offerings they are looking for in supermarkets. Limitations of the Research One limitation of the research is that the findings may be true only for the research locale since supermarket industry practices vary from one region to another. Increasing the number of respondents may also increase the accuracy of the results. Results The following are the results yielded from the survey questionnaires deployed to the three supermarkets. There were a total of 15 respondents coming from Tesco; another 15 from Marks and Spencer, and the remaining 20 from Aldi. In total, there are 50 respondents who answered the survey questionnaire. Table 1. Descriptive Statistics: Subjective Norms. N Minimum Maximum Mean Std. Deviation SN1 50 3.00 5.00 4.2000 .75593 SN2 50 3.00 5.00 3.9000 .54398 SN3 50 3.00 5.00 4.0800 .85332 SN4 50 3.00 5.00 4.1200 .79898 SN5 50 4.00 5.00 4.4000 .49487 Valid N (listwise) 50 The following are the results on subjective norms: The staff affects my preference for this store (X=4.40, sd=.49). My income affects my preference for this store (X=4.20, sd=.76); What my peers say about this store affects my preference for this store (X=4.12, sd=.80); The location of this store affects my preference for this store (S=4.08, sd=.85); and The facilites of this store affects my preference for this store (X=3.90, sd=.54). All results suggest agreement to all of the subjective norm statements. Table 2. Descriptive Statistics: Attitudes. N Minimum Maximum Mean Std. Deviation ATT1 50 4.00 5.00 4.6000 .49487 ATT2 50 3.00 5.00 4.4000 .67006 ATT3 50 3.00 5.00 4.2000 .60609 Valid N (listwise) 50 For the Attitudes factor, the results are as follows: This supermarket lives up to its Ads so I buy from it (X=4.60, sd=.49); I believe that if I buy from this supermarket I will feel no regrets afterwards (X=4.40, sd=.67); and I believe the store offers quality products so I pick up items checking for quality anymore (X=4.20, sd=.61). All outcomes suggest agreement to the Attitudes factor. Table 3. Descriptive Statistics: Behavioural Intentions. N Minimum Maximum Mean Std. Deviation BI1 50 3.00 5.00 4.1000 .83910 BI2 50 3.00 5.00 4.2000 .75593 Valid N (listwise) 50 The Behavioural Intentions cluster yielded the following results: In general, I am positive about this store (X=4.20, sd=.76); and If this Supermarket offers new products, I will confidently avail them (X=4.10, sd=.84). These both suggest agreement to both items. Table 4. R2 of Subjective Norms and Attitudes as Explanatory Variables for Behavioural Intentions. Model R R Square Adjusted R Square Std. Error of the Estimate 1 .894(a) .799 .790 .62241 a Predictors: (Constant), ATTOT, SNTOT The percentage of the variance of Behavioural Intentions explained by Subjective Norms and Attitudes is 79%. Table 5. Beta Coefficients of Subjective Norms and Attitudes as Explanatory Variables for Behavioural Intentions. Model Unstandardized Coefficients Standardized Coefficients B Std. Error Beta t Sig. 1 (Constant) -11.589 1.634 -7.094 .000 SNTOT .569 .059 .694 9.602 .000 ATTOT .615 .130 .342 4.733 .000 a Dependent Variable: BITOT Subjective Norms is a signficant predictor of Behavioural Intentions (B=.69, p=.00); moreover, attitudes are also a significant predictor of Behavioural Intentions (B=.34, p=.00). Conclusion Consumer attitude is greatly influenced by the belief of the consumers and by subjective norms, which both have consequences on their buying behaviour. Therefore, supermarkets should find a way to market their offerings in a manner that consumers will believe that the patronage of such offering, the behaviour, will result in satisfaction on their part. It is important to reduce post purchase remorse on the part of the consumers. References Anchor, JR. and Kourilova, T 2009. Consumer perceptions of own brands: international differences. Journal of Consumer Marketing, vol. 26, no. 6, pp.437 - 449. Bright, Alan D., et al. 1993. Application of the theory of reasoned action to the national park service's controlled burn policy. Journal of Leisure Research. v25 (1993): California State University, Fresno Expanded Academic ASAP. Fishbein, M., & Ajzen, I. (1975). Belief, attitude, intention, and behavior : An introduction to theory and research. Massachussetts: Addison-Wesley Publishing Co. Fishbein, M, and Ajzen, I 1980. Understanding attitudes and predicting social Behaviour. New Jersey: Prentice Hall. Gilbert, DC and Jackaria, N 2002. The efficacy of sales promotions in UK supermarkets: a consumer view. International Journal of Retail & Distribution Management, vol. 30, no. 6, pp. 315 - 322. Harvey, M 2000. Innovation and competition in UK supermarkets. Supply Chain Management: An International Journal, vol. 5, no. 1, pp. 15 - 21. Johnson, R 2002. Fishbein's attitude. [Online] Accessed 02 Feburary 2010 Kippenberger, T 1997. Marks & Spencer: a revolutionary in retailing. The Antidote, vol. 2, no. 6, pp. 32 - 36. Laforet, S 2005. Retail brand extension - perceived fit, risks and trust. Journal of Consumer Behaviour, vol. 7, no. 3, pp. 189 - 209 Littlejohn, S 2002. Theories of human communication. California: Wadsworth Thomson Learning. McEachern, MG and Seaman, C 2005. Consumer perceptions of meat production: Enhancing the competitiveness of British agriculture by understanding communication with the consumer. British Food Journal, vol. 107, no. 8. pp. 572 - 593. Padel, S and Foster, C 2005. Exploring the gap between attitudes and behaviour: Understanding why consumers buy or do not buy organic food. British Food Journal, vol. 107, no. 8, pp. 606 - 625. Pettigrew, S, Mizerski, K and Donovan, R 2005. The three “big issues” for older supermarket shoppers. Journal of Consumer Marketing, vol. 22, no. 6, pp. 306 – 312. Schmidt, RA, Segal, R and Cartwright, C 1994. Two-stop Shopping or Polarization: Whither UK Grocery Shopping? International Journal of Retail & Distribution Management, vol. 22, no. 1, pp. 12 - 19. Sylvie, L 2007. British grocers' brand extension in financial services. Journal of Product & Brand Management, vol. 16, no. 2, pp. 82 - 97. Tesco leads the way in the loyalty program stakes: UK supermarket succeeds where so many others fall foul. 2007. Strategic Direction, vol. 23, no. 2, pp. 18 - 21. The secrets of Tesco's expansion success: How the UK's largest supermarket is creeping up on Carrefour and Wal-Mart. 2005. Strategic Direction, vol. 21, no. 11, pp. 5 - 7 Whitehead, M. 1994. Marks & Spencer “Britain’s Leading Retailer: Quality and Value. Management Decision, vol. 32, no. 3, pp.38 - 41. Appendix A – Survey Questionnaire Appendix A – Survey Questionnaire Greetings! We are carrying out a research on the customer attitudes towards supermarkets. Rest assured that the results shall be used exclusively for research purposes only. Do shade the circle that corresponds to your response. Thank you. 1) My income affects my preference for this store. O Strongly Disagree O Disagree O Neutral O Agree O Strongly Agree. 2) The facilites of this store affects my preference for this store. O Strongly Disagree O Disagree O Neutral O Agree O Strongly Agree. 3) The location of this store affects my preference for this store. O Strongly Disagree O Disagree O Neutral O Agree O Strongly Agree. 4) What my peers say about this store affects my preference for this store. O Strongly Disagree O Disagree O Neutral O Agree O Strongly Agree. 5) The staff affects my preference for this store. O Strongly Disagree O Disagree O Neutral O Agree O Strongly Agree. 6) This supermarket lives up to its Ads so I buy from it. O Strongly Disagree O Disagree O Neutral O Agree O Strongly Agree. 7) I believe that if I buy from this supermarket I will feel no regrets afterwards. O Strongly Disagree O Disagree O Neutral O Agree O Strongly Agree. 8) If this Supermarket offers new products, I will confidently avail them. O Strongly Disagree O Disagree O Neutral O Agree O Strongly Agree. 9) I believe the store offers quality products so I pick up items chekcing for quality anymore. O Strongly Disagree O Disagree O Neutral O Agree O Strongly Agree. In general, I am positive about this store. O Strongly Disagree O Disagree O Neutral O Agree O Strongly Agree. Appendix B – SPSS Computations Descriptive Statistics N Minimum Maximum Mean Std. Deviation SN1 50 3.00 5.00 4.2000 .75593 SN2 50 3.00 5.00 3.9000 .54398 SN3 50 3.00 5.00 4.0800 .85332 SN4 50 3.00 5.00 4.1200 .79898 SN5 50 4.00 5.00 4.4000 .49487 Valid N (listwise) 50 Descriptive Statistics N Minimum Maximum Mean Std. Deviation ATT1 50 4.00 5.00 4.6000 .49487 ATT2 50 3.00 5.00 4.4000 .67006 ATT3 50 3.00 5.00 4.2000 .60609 Valid N (listwise) 50 Descriptive Statistics N Minimum Maximum Mean Std. Deviation BI1 50 3.00 5.00 4.1000 .83910 BI2 50 3.00 5.00 4.2000 .75593 Valid N (listwise) 50 Model Summary Model R R Square Adjusted R Square Std. Error of the Estimate 1 .894(a) .799 .790 .62241 a Predictors: (Constant), ATTOT, SNTOT ANOVA(b) Model Sum of Squares df Mean Square F Sig. 1 Regression 72.292 2 36.146 93.305 .000(a) Residual 18.208 47 .387 Total 90.500 49 a Predictors: (Constant), ATTOT, SNTOT b Dependent Variable: BITOT Coefficients(a) Model Unstandardized Coefficients Standardized Coefficients t Sig. B Std. Error Beta B Std. Error 1 (Constant) -11.589 1.634 -7.094 .000 SNTOT .569 .059 .694 9.602 .000 ATTOT .615 .130 .342 4.733 .000 a Dependent Variable: BITOT Read More