Article Review Session retail stores

7/31/2019 Article Review Session retail stores

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Presented by

Subhankar Chowdhury M5-40


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By


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Dr. Rajagopal is the Professor of Marketing at Monterrey Institute of Technology and Higher Education (ITESM), Mexico City Campus and Fellow of the Royal Society for Encouragement of Arts, Manufacture and Commerce,London.

He has been listed with biography in Who s Who in the World, 2008 and2009.

He holds doctoral degree from Ravishankar University, India and has been

conferred as National Researcher- Level-II of Mexican National System of Researchers.

Dr. Rajagopal held key positions in many premier management institutes inIndia including Administrative Staff College of India.


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Self-service retail stores are increasingly using point-of-salespromotional activities to drive buying stimulation among consumers.

The prospective customers have the objective to buy at the right time

so as to minimize the expected price of the acquired item.

Point-of-sales promotions, however, stimulate compulsive buying behavior among the customer, which dominates the buying decisiondespite comparative differences in the prices of alternate channels.

This strategy of point-of-sales promotions has helped large self-serviceretail stores to slash costs on advertising and publicity, increase

volume of sales and sharpen their focus on core competencies.


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: Consumers are in uenced in making buying decisions by the product attractivenessand by in-store shopping arousal generated by the point-of-sales promotions introducedby the retail stores.

: Consumers develop compulsive buying behavior and higher store loyalty whileresponding to the point-of-sales promotions.

: During the point-of-sales promotions, retailers boost higher shopping arousal,leading to conformity towards the buying decision.

: Shopping arousal, generated through interpersonal communication and product experience offered to the customers during point-of-sales promotions, increases therandomness of variety-seeking behavior and impulsive buying.

: In response to the sales promotion offers, loyal customers purchase more store

brands than non-store brands.


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This study has been conducted in 16 branches of the 4 chain self service retail stores of Mexico-Commercial Mexicana, Chedraui,Gigante-Soriana and Wal-Mart de Mexico located in Mexico City (Federal District of Mexico).

The samples respondents selected were those who regularly shop inthe above self-service stores in Mexico City and its suburbs.

Data were collected by administering pre-coded, structured

questionnaires to 270 customers, who were selected following a purposive sampling and snowballing technique.


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The study was conducted during 2005 2007 in three seasons,March April (spring sales), July August (summer sales) andNovember January (winter sales) per annum.

A focus group session was organized with potential respondents to

identify the most appropriate variables for the data collection.

36 variables that were closely related towards in uencing the shopping arousal and customer satisfaction on point-of-sales promotions wereselected and incorporated into the questionnaires.

The questionnaires were pilot-tested to 32 randomly selectedrespondents and nalized after re ning them based on the responsesof the pilot study.


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During the process of data analysis, the questionnaires of 36respondents were omitted due to paucity of information. In all, 234respondents were covered under the study, and the usable responserate was 86.66 per cent.

The non-response bias has been measured, applying two statisticaltechniques. First, telephonic conversations were made with 20randomly selected non-respondents.

A second test for non-response bias examined the differencesbetween early and late respondents on the same set of factors.


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The effectiveness of point-of-sales promotion was measured with a 12- variable self-appraisal perceptual scale derived originally from thebasis of focus group analysis.

The impact of the post-promotional buying decision in terms of

enhancing customer satisfaction and store loyalty has been measuredusing an 11- variableself -appraisal perceptual scale .

A ve-point Likert scale has been used to measure the efficiency of

customer services delivered by the automobile dealers in the study region.

The chi-square, comparative- t index and regression analysis wasperformed for different measurement.


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The results reveal that 78.80 per cent of customers use EIP (Easy Installment Payment) promotional services, while 64.77 per cent of customers are attracted by the BPP promotions offered by the retailstores.

78.56 per cent of customers use ECC within the Wal-Mart group of

stores, while 81.49 per cent of customers use SCC for continuouspurchases at the store.

It has been observed that the longer the consumers are attracted by the point-of- sales promotions, product promotions, innovation andtechnology, and (DIY) and (ETE), the more spendthrift they become.

It has been observed during the study that customers had experienceda higher attraction towards the store brands as compared with thenon-store brands due to low price and acceptable quality at par with

the non-store brands.


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The promotional effects generated from various promotional toolsmay be monitored for longer periods of time and measured inreference to achieving the long-term goals of retail rms.

Retailers must be strategic about pulling unpro table products fromthe shelves and avoiding high-volume but low-pro t customer

segments.The sales promotion programmes need to be a part of the agenda of marketing managers and stretched for a long period with regularintervals.

Appropriate promotional strategies that consider the economic andbehavioral variables discussed in the study may be developed by themanagers on measuring the intensity of buying in response to salespromotions and by maximizing consumer satisfaction to increase the

volume of sales.


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Sales promotions are considered to be short-term instruments, usually designed to yield an immediate sales effect.

Point-of-sales promotion programmes have become the principal toolof retailers to acquire new customers and retain loyal customers.

It is found that loyal customers are attracted to the store brandsduring the promotional offers.

New shoppers are price sensitive and are attracted by the in-storeambience of sales promotions and volume discounts.

The point-of-sales promotions signi cantly stimulate the buying behavior among customers towards compulsive buying that is driven

by the factors of the hidden fear of not getting such bargain in thefuture, product attractiveness and in-store shopping arousal.

Customers develop a higher preference for store brands, enhanceduse value and repeat-buying behavior through a hands-on experienceof the product.


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Samples drawn for the study might have been insufficient togeneralize the study results.

The study does not indicate as to how behavior control, quality differentiation, and promotional design efficiency overrule the priceand volume discount stimuli among the customers.

the study might also have limitations concerning some of the biasesdriving shopping arousal among the customers during point-of-salespromotions such as, at times, virtual shopping overweighing the pricepromotions.


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Article Review Session retail stores

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