The influence of customer perceived value and attitude toward local supermarket choice
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Date
2014
Authors
Swee Beng, Kua (John)
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Abstract
In the competitive environment of retailing, the income and popularity of grocery stores are much dependent on customer’s choice to their stores. Many studies have focused on shoppers on evaluating store attributes such as merchandise prices, store atmosphere, quality and store convenience that form their attitude toward store and in turn affect supermarket choice. Although store attributes predicted store choice in the literature, there has been lack of researches that investigate perceived value influence on store choice, in particular supermarket choice. The current trend of customers is the perceived value that drives the choosing of a supermarket. Noting that, this study investigates the influence of customers’ perceived value on supermarket choice made by residents in Penang state. It is proposed that supermarket choice is influence by customer attitude driven by various dimensions of perceived value, which are functional price, functional quality, convenience, emotional and social value. The respondents are members representing their respective households in Penang state with convenience sampling are employed. Structured equation modeling analysis revealed that however, there is significant relationship between monetary value, convenience value and social value on supermarket choice even when mediation comes to play. This study makes several theoretical contributions. First, its main contribution is to have customer attitude to predict the influence of perceived value on supermarket choice. Second, this study has successfully linked perceived value dimensions to supermarket choice. Third, this study has advance perceived value model by adapting to retail context as previous studies it is
applied mostly in a product setting. Fourth, it responded calls made by scholars in perceived value literature to pair perceived value with retail outcome. Last but not least, this study adds to literature stream that backed perceived value as multidimensional construct. On the practical side, the study encouraged local supermarkets managers to take heed customer perception of value on their stores so that they could attract more traffic, revenue and income to their supermarkets. Among the practical contributions are setting value pricing, creating strategy that promotes convenience value, engage on customers’ emotions during grocery shopping and generate a differentiation strategy that set supermarket apart from foreign competitors. Future studies may focus on other store formats or extend the model of this study by including other concepts such as demographic characteristics of the consumers.