Fundamental basket size patterns and their relation to retailer performance
This study uses a sample of approximately 60,000 US households to document fundamental shopping basket size patterns across a range of retail types, and examines them in relation to retailer performance metrics (unit sales and dollar revenue). Specifically, this research addresses two main questions: 1) how do shopping basket metrics (mean and median number of items, the distribution of one, two, three ... n items) differ by retail type, and 2) how does the Pareto ratio (sales generated by the heaviest 20%, and lightest 80% of buyers) apply to shopping baskets. The results show that basket size patterns in retailers are predictable. Shoppers purchase more items on average in retailers that offer a greater variety of items, and the distribution of basket sizes follows the Poisson lognormal model. The results also show that the largest 20% of shopping baskets on average generate 50% of unit sales, and 40% of dollar revenue. These results set additional benchmarks of the patterns that can be expected when looking at data on a basket-level. This research offers implications to practitioners by showing the importance of small and large baskets for retailer revenue and growth, which can guide more informed decision making to better manage their stores and brands.
CitationMartin, J., Nenycz-Thiel, M., Tanusondjaja, A., Cohen, J., McColl, B., Trinh, G. (2020). "Fundamental basket size patterns and their relation to retailer performance”. Forthcoming in the Journal of Retailing and Consumer Services.
Examining older consumers’ loyalty towards older brands in grocery retailing
This paper compares the buying behaviours of older and younger consumers of older and newer brands in grocery retailing. We analysed 88,000 purchases of 60 brands from six categories. Behavioural loyalty measures for different consumer age cohorts were calculated and compared relative to each brand’s launch date. Results showed older consumers do not buy older brands more often than newer brands. Older consumers also do not principally buy older brands. Therefore, brands of all ages compete for consumers of all ages. Findings indicate that for newer brands, older consumers should not be ignored as a market for growing the brand. For older brands, despite the default advantage of long-term exposure of older consumers, such advantage will fade if these brands fail to maintain a competitive presence in the market, as older consumers trial and become loyal to newer brands.
CitationPhua, P., Kennedy, R., Trinh, G., Page, B., Hartnett, N. (2019) "Examining older consumers’ loyalty towards older brands in grocery retailing". Forthcoming in the Journal of Retailing and Consumer Services.
Using the Eyberg Child Behaviour Inventory to investigate Pester Power
Much research focuses on the “power” side of “pester power”, with the assumption being that all requests are unwanted. Focusing on children aged under approximately 14 years old, and using recordings of 89 shopping trips, this paper uses the Eyberg Child Behaviour Inventory (new to the marketing literature) to investigate the “pester” aspect further and finds that, by and large, most trips are conducted without extreme child behaviours being exhibited. A third of children exhibit whining, and the remainder of scale items have low incidence of occurrence. These behaviours are also not found to be related to product requests. Roughly eighty percent of children made a request, and a fifth of these requests were granted. Parents do overall exercise power as gatekeepers for the food their children eat and do appear to exercise this power in-store in addition to regulating their disruptive behaviour. Future research needs to consider the wider opportunities children have to influence their parents and their influence in other retail contexts outside grocery shopping.
Keywords: Pester power; children; parents; consumer socialisation
Comparing two supermarket layouts: the effect of a middle aisle on basket size, spend, trip duration and endcap use
This paper aims to empirically establish the effectiveness of a supermarket layout with a middle aisle splitting all other aisles, compared to a ‘traditional’ layout (without a middle aisle). Two supermarkets in Australia were matched by size, turnover, population/location, and general layout, except that Store 2 had a middle aisle. The research aims to: (1) explore the shopper traffic entering and existing the middle aisle, and interaction with endcap promotions (which have effectively been doubled by the creation of the middle aisle in Store 2), and (2) compare the two stores based on basket size (in items and dollars) and trip duration. These are typical supermarket metrics, which might differ due to increased opportunities for impulse purchases from the extra endcap displays in the middle aisle. Despite the middle aisle, results show that all performance metrics are almost identical between the two stores on the overall level. However, the store containing the middle aisle sees a higher proportion of trips for under 15 items. Overall use of promotional ends of aisles is the same across both stores, meaning that the use of each endcap is effectively halved.
This means that the presence of a middle aisle does not bring any additional value in terms of making the store easier or quicker to navigate. It may provide additional benefits to retailers in terms of giving more promotional space to manufacturers, at the expense of making each endcap half as likely to generate interest. Our additional analysis of the traffic flow near the endcaps suggests that, in most occasions, shoppers pass through the aisle as if there was no break. These results are useful insights to retailers considering remodeling an existing store and manufactures buying endcap space in a store with a middle aisle.
CitationPage B, Trinh G, and Bogomolova S (2018), “Comparing two supermarket layouts: the effect of a middle aisle on basket size, spend, trip duration and endcap use,” Journal of Retailing and Consumer Services
How the layout of a unit price label affects eye-movements and product choice: an eye-tracking investigation
Unit pricing (i.e., displaying prices per unit of volume or weight) is deemed helpful for grocery shoppers. Many countries mandate that supermarkets provide unit prices. However, consumers only make limited use of unit pricing. Consumer advocates attribute this to the poor and inconsistent presentation of the unit price information. Using eye-tracking, the present research tests how unit price label design factors (position, font size, signposting and color highlighting on the price label) affect consumers’ eye-movements during the product decision process. Additionally, the study assesses how the effects of the design factors depend on the consumer’s price consciousness. The research also tests how the consistency of the label presentation affects eye-movements and choice. Findings from an experimentally designed shopping task using natural stimuli reveal that an enhanced label design leads to an increase in the number of eye fixations, in particular when the unit price is color highlighted and especially for consumers who are less price conscious. These increased fixations, however, do not result in changes in product choice.
CitationBogomolova, S, Oppewal, H, Cohen, J & Yao, J, "How the layout of a unit price label affects eye-movements and product choice: an eye-tracking investigation", Journal of Business Research, 2018
Inside-outside: Using eye-tracking to investigate search-choice processes in the retail environment
In the retail environment, attention is requisite to purchase, attention being the collection and assessment of stimuli from our senses (visual stimuli are generally the most important) for cognitive processing according to the needs of the moment. Visual attention is easily and affordably measured today using eye-tracking technology. This paper reviews the “state of play” of the use of eye-tracking technology as a research tool in retail and retail marketing. The review is timely as during the last decade many non-proprietary eye-tracking studies have been published in marketing, consumer behavior, and retail journals, and additional work is expected as the technology gains adoption in consumer research. We reviewed studies that contributed to an understanding of consumer behavior in the gold standard of consumer interface: the retail store. The goal of the paper is to provide a synthesis of retail-focused eye-tracking study findings. We present the managerial and theoretical significance of the research as well as an agenda that considers the use of eye tracking from pre-shopping through point-of-sale.
CitationHuddleston, P. T., Behe, B. K., Driesener, C., & Minahan, S. (2018). "Inside-outside: Using eye-tracking to investigate search-choice processes in the retail environment". Journal of Retailing and Consumer Services, 43, 85-93.
Assessing the sales effectiveness of differently located endcaps in a supermarket
This paper compares the sales effectiveness of front versus back located end-of-aisle promotional displays (endcaps) in a supermarket, through measuring sales from the endcaps alone and the total brand sales across three experiments. This paper reveals that rear endcaps generate a higher total brand sales uplift than front endcaps, acting like “billboards” to draw shoppers into the main aisle. On average, rear endcaps generated 416% sales uplift, while front endcaps generated 346% sales uplift. However, front endcaps deliver higher endcap-only sales uplift. These findings challenge industry assumptions about one of the most commonly used promotional tools.
CitationTan, P., Corsi, A., Cohen, J., Sharp, A., Lockshin, L., Caruso, W., Bogomolova, S. (2018). "Assessing the sales effectiveness of differently located endcaps in a supermarket". Forthcoming in the Journal of Retailing and Consumer Services.
Has behavioural loyalty to online supermarkets declined?
This paper investigates consumer’s behavioural loyalty to online supermarkets over time. We use three measures of behavioural loyalty (share of category requirement, repertoire size, and polarisation index) from four major online supermarkets in the UK across five categories. We find that loyalty to online supermarkets is high in the categories we examined, though it declined somewhat from 2005 to 2009 and subsequently remained stable from 2010 to 2014. We also extensively test the generalizability of the well-known Dirichlet model to the choice of online supermarkets. We find that the model gives better fit from 2010 to 2014 than from 2005 to 2009 and can describe loyalty and competition in this context.
CitationAnesbury, Z., G. Trinh and C. Driesener (2017). "Has behavioural loyalty to online supermarkets declined?" Australasian Marketing Journal 1-24.
The Real Estate Value of Supermarket Endcaps
Manufacturers pay premiums for endcap real estate because shoppers navigate the perimeter of retail spaces, avoiding entering the aisles unnecessarily. However, research is yet to establish how the physical and visual reach of endcaps might vary across different locations within a store. Our research across five supermarkets in three countries (US, AUS & NZ) explores how foot-traffic and visual reach of endcaps differ by location. Our findings identify the most prominent endcaps, both in terms of foot-traffic and visual reach are those at the back. The endcaps located at the back of the store have, on average, 24% more foot-traffic and 30% more visual reach compared to endcaps located at the front. This provides marketers with evidence on how to reach more shoppers in different endcap locations in the supermarket.
CitationCaruso, W., Bogomolova, S., Corsi, A., Cohen, J., Sharp, A., Lockshin, L., Tan, P. (2017). "The Real Estate Value of Supermarket Endcaps." Journal of Advertising Research 1-15.
Patterns of fruit and vegetable buying behaviour in the United States and India
Abstract
This paper describes the patterns discovered in fruit and vegetable buying behaviour in the United States and India. Using claimed buying data obtained from online questionnaires we compare the patterns against those found extensively in consumer goods categories across the world. This study analyses consumer loyalty with Double Jeopardy, consumer sharing with Duplication of Purchase and brand user profiles with Mean Absolute Deviations. The results show the buying behaviour patterns of Double Jeopardy, Duplication of Purchase and that brand user profiles exist within the fruit and vegetable categories. The implications of these findings are (1) that the size of fruit and vegetable brands are largely determined by how many people buy them and not how loyal those consumers are, (2) fruit and vegetable brands share consumers with each other, and, (3) fruit and vegetable brands are not purchased by unique segments of the populations. Therefore in order to increase the number of people buying fruit and vegetable brands marketers should focus on increasing their mental and physical availability (i.e. the same strategies used for consumer good category brands).
Key words: Patterns of buying behaviour, Fruit and vegetables, Dirichlet, Segmentation
CitationAnesbury, Z., Greenacre, L., Wilson, A., Huang, A., (2017). Patterns of fruit and vegetable buying behaviour in the united states and india. International Journal of Market Research, 1-28.