Why do consumers shop where they do? A study of Christchurch consumers' choice of supermarket outlets

Abstract

This thesis investigates why consumers shop at a particular retail outlet. It applies international research on consumer choice behaviour to the Christchurch context, paying particular attention to location convenience, merchandise selection, outlet image, consumer characteristics, and retail advertising. In order to determine how these factors influence outlet-choice behaviour, this thesis develops a conceptual framework to study consumers' choice behaviour.

This conceptual framework integrates decision-making, behavioural, and experiential perspectives of consumer behaviour theories. Choosing to shop at a particular store is depicted as the outcome of a two-stage decision-making process, being elimination and choice processes, influenced by an individual's characteristics and environmental stimuli. The second stage of this conceptual framework, or the choice stage of the decision-making, is applied in-depth to study Christchurch consumers and their choice of supermarkets. To facilitate this in-depth study and carry out this investigation empirically a range of statistical models is evaluated. For this purpose, factor, cluster, and logistic regression analyses were considered.

The results suggest first that there is no one overriding reason why people shop where they do. Instead consumers tend to shop at different supermarkets for various reasons. The principal reasons being meat, variety, staff services signage, coupon, price, and location convenience. Secondly, the supermarket's patrons belong to specific consumer segments, each with its own significant pattern of demographic and life-style characteristics. Finally, image advertising is an effective marketing tool which influences choice behaviour through interacting with consumers' perception of choice determinants.