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ISSN : 1738-3110
The Effect of Store Characteristics of a Supermarket on Store Loyalty: A Comparative Study of the Local Supermarket and the Super Supermarket
Kwon, Sung-Ku
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Abstract
Purpose - The entry of Super Supermarkets (SSM), operated by large corporations, into the retail distribution market weakens the competitive power of local supermarkets (SM) and their families leading to a rapid collapse of the local-SM market. Accordingly, this is a very sensitive and urgent issue in Korean society and politics. Therefore, the government is required to take steps to activate a local-SM market and regain the loyalty of their customers. However, in spite of the urgent need of a comparative study on the advantages and competitive power of local-SM in relation to the SSM, little research has been done on this issue to date. One purpose of this study is to analyze the differences in store characteristics of the local SM and SSM, and to explore the relationships amongst various store characteristics, such as consumption emotion, relation quality, and store loyalty between store types to provide an efficient solution to activate a local-SM market. Research design, data, methodology - To analyze the differences in the evaluation of store characteristics between store types, and to test the moderator and mediator effects, data were collected from 488 customers in Seoul, Incheon,and Gyeonggi Province. The theoretical model consists of four hypotheses, and data was processed to test these using factor analysis, t-test, regression analysis, hierarchical regression, and the three step regression proposed by Baron and Kenny. Results - First, the analysis shows that local-SM customers evaluate location characteristic factors significantly higher compared to SSM customers. However, SSM customers evaluate quality of merchandise, sales promotion activities, and store environment significantly higher. Yet, there are no significant differences in the evaluation of consumption emotion, relation quality,and store loyalty between the store types. Second, the analysis of moderator effects of the store type show that sales promotion and store atmosphere factors have a significantly negative moderating effecton positive consumption emotion, while positive consumption emotion has a significantly positive moderating effect on absorption of relation quality, while there are no significant moderating effects between consumption emotion and store loyalty. Third, while both trust and absorption of relation quality are partially mediated between consumption emotion and store loyalty, only absorption is partially mediated between positive consumption emotion and store loyalty. There are no significant mediating effects of absorption between negative consumption emotion and store loyalty. Conclusions - We strongly recommend that location restrictions on entrance of SSM into local-SM market should either be further strengthened or sustained for the activation of the local store market. Government should strengthen financial support to improve the quality of merchandise, sales promotion, employee education, store environment of the local-SM by providing appropriate business consulting. Moreover, the result implies that the owners of alocal-SM should take measures to increase customers' absorption and store loyalty, such as store cleanliness, maintaining a delightful atmosphere at the store, and training employees on attitudes towards customers. As this study is restricted within Seoul, Incheon, and Gyeonggi Province, care needs to be taken in generalizing the interpretation and application to the national level.
- keywords
- SSM, Local-SM, Store Characteristics, Consumption Emotion, Relation Quality, Store Loyalty
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