Supermarkets face out food discounters: from buying to shopping

Résumé du document

The following report encompasses four main parts, i.e. a literature review developing theories on the selected topic, a research methodology helping in the selection of the most accurate research method, findings following from the primary research and a discussion confronting the literature review and the findings. To start with, the literature review investigates the recent increase of the food discounter's format and tends to give a comparison with the supermarkets one, leaders of the food industry. This section mainly tackles the food retailer strategies and the competitive advantages they try to cultivate, notably the store loyalty. Thus, this part brings to light the relationships between the store loyalty and the store perception, via the example of the store environment as factor of negative or positive perception. This part finished on the highlighting of an opportunity to create store loyalty via a better store perception for food discounters. Then, the research methodology aims to determine the most accurate research design, method and technique in order to carry out properly a marketing survey. This theoretical framework shows the qualitative approach as the most suitable because of the nature of the needed information, i.e. the observation of behaviors, attitudes and habits of customers, especially in food discount stores and supermarkets. The selected approach is more precisely a mystery shopping with a questionnaire on the store environment in two food retailers: a supermarket (Asda) and a food discounter (Aldi). To continue, the findings are the results from the primary research in the form of marks, that is to say from the mystery shopping. The findings are accompanied by an analysis following from the results underlining the main similarities and differences between both food retailers in term of store environment and impact on the behaviors and attitudes of customers. This latter is mainly based on the store interior of both food retailers through the layout, the atmosphere or the merchandising principles and tends to deliver a critical picture of the differences in the elaboration and the potential impacts on the buying decision process and then the store loyalty of customers.

Extraits

[...] Indeed, it is really important to be precise on some areas such as the relationships between store perceptions store environment, store perceptions and customer's expectations or between store environment and customers' feelings. This is paramount for food discounters because it seems they tend to suffer from bad perception in the viewpoint of consumers. These answers may permit food discounters to benefit from opportunities clearly defined and adapt their strategy and highlight a potential threat for supermarkets. To carry out this research, the study has to achieve some objectives. The plan of the report will follow these objectives. Indeed, the first objective goes through a secondary research, i.e. [...]

[...] Hence, the top priority for retailers wanting attract new customers is to create low-stress shopping environment. In addition, the store image is consistent with the consumer's perceived image of the store, consumers will patronize the store” (Moye & Kincade: 2002: 61). But retailers have to take into account other variables of the environment such as the social value (aspect of the staff) because it is a form of symbols, suggestions toward the image of the store (Gilboa & Rafaeli: 2003). [...]

[...] The browsing is facilitated at Asda and answer to customer's expectations thanks to the to try before to (Cf Appendix I-2). B. The competencies of the staff The staffs constitute also a difference in the store environment of retailers. Aldi because of its limited staff and absence of service desk cannot answer to all customers' expectations (Cf. Appendix II-5 and II-6). Actually, the staff are so busy that they do not have the time to answer correctly and precisely, to be very polite. [...]

[...] And, does it convey bad perception of the retail format of food discounters? What are the main differences in the store environment with supermarkets? And what kind of feelings arises from the two type of store environment? How improve service quality? To finish, what are the general impressions, would customer shop again in a food discount store, in other words can the store environment create or maintain store loyalty in this retail format? Development of theoretical framework A. The research philosophy and its implications The research philosophy is divided in two movements: the positivism and the interpretivism (Carson et al: 2001). [...]

[...] the layouts and the product presentations (e.g. strange adjacent products), it generates a convenient way of shopping (Cf. Appendix II-3). In fact, people are not wasting time searching products as the discounters' stores are small and not elaborated. This aspect is paramount knowing that one of the key elements in the buying decision process is the “psychological cost” in terms of time and cost (Baker et al: 2002). So this convenient advantage can permit discounters to maintain customers' loyalty. B. [...]