Creating Value in Grocery Retailing

Mikko Hänninen

Research output: Chapter in Book/Report/Conference proceedingConference contributionScientificpeer-review

Abstract

Purpose: Based on an experimental study, this paper studies hypermarket shoppers in order to evaluate how well the customer experience offered in-store matches the needs of customers and creates value for them. The findings of this study contribute towards customer value theory and develop future research topics for marketing researchers as well as business opportunities for retailers who amidst increasing price competition are in need of new tools for creating long-term relationships with their customers

Design/methodology/approach: This paper is qualitative in nature in order to understand the subjective thoughts, emotions and feelings of grocery shoppers. Customers from a Finnish hypermarket store were recruited for 3 Focus Group discussions as well as 1 in-depth interview held between October and November 2015.

Findings: Customer value theory is extended in order to show that in grocery retail customer experience creates value for consumers. The key theoretical contribution of this paper is identifying the role of trust in the relationship between
consumers and retailers as well as its relevance to the retailers’ customer experience. According to the empirical findings of this study, trust combines the economic, functional and emotional value dimensions together meaning that
the consumers are able to trust various factors in the store including the pricing, quality and selections. The lack of trust can also potentially alienate some customers and end the customer relationship.

Practical implications: The practical implications are related to enhancing retailers’ communication with customers and creating trust through an integrated in-store offering. Most importantly by redefining the communication and marketing strategies retailers can better emphasize the human aspect behind the store management that according to this study’s findings customers enjoy, especially in an entrepreneur retailer run store where this study is conducted.

Originality/value of the study: This study is an extension to the prior research on customer value; first of all it explores the relationship between customer value and customer experience in-store and secondly it identifies new combinations of value that is created through the customer experience.

Keywords: Retailing, Trust, Customer Experience, Customer Value, Grocery Retail, Customer Loyalty, Customer Relationship Marketing, Consumer Behavior, Hypermarket, B2C

Article Classification: Research Paper
Original languageEnglish
Title of host publicationColloquium on European Research in Retailing, 2-4 June 2016
Subtitle of host publicationAbstracts and articles presented at the third Colloquium on European Research in Retailing
Place of PublicationToulouse
Pages157-171
Number of pages15
ISBN (Electronic)978-2-9549997-1-5
Publication statusPublished - 2016
MoE publication typeA4 Article in a conference publication
EventColloquium on European Research in Retailing - Toulouse Business School, Toulouse, France
Duration: 2 Jun 20164 Jun 2016
http://cerr.sciencesconf.org/

Conference

ConferenceColloquium on European Research in Retailing
Abbreviated titleCERR
Country/TerritoryFrance
CityToulouse
Period02/06/201604/06/2016
Internet address

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