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Literature Review for Woolworths Research - Essay Example

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A search through literature reveals that quite a number of studies have evaluated such factors which impact how customers choose to shop (Wel, Hussin, Omar, & Nor, 2012; Chen & Hsieh, 2011; Briesch, Chintagunta, & Fox, 2009; Bell, Corsten, & Knox, 2011). This section reviews relevant literature on this subject. First, it starts by factors that which impact customer store choice, then evaluates the promotional activities in retail stores that are built on customers store choice behavior, and finally identifies Woolworths’ competitive strengths and promotional activities. Factors that impact customer’s store choice Marketing scholars and practitioners have long agreed that the factors which determine a customer’s decision to shop in a specific store is integral as it not only where customers choose to shop, but also what they shop and how much of it they buy (Briesch, Chintagunta, & Fox, 2009). ...
Briesch, Chintagunta, and Fox (2009) note that shoppers’ store decisions are highly influenced by assortments which is the image of the store. This factor comes third after location convenience and low prices. Assortment size may be in terms of a broad ray of products and the retail price formats which may be either promotional pricing format (Hi-Lo) where prices changes with changing seasons, or it may be every day price format (EDLP) where prices are lower than competitors. Indeed in their analysis of price formats on store patronage, Bell, Ho and Tang (1998) showed that customers often traded off between lower prices and convenience where, they would most likely visit a Hi-Lo store when they are purchasing less, and hence convenience beets price or they would most likely choose EDLP stores when they are purchasing more irrespective of the location of the store, hence low price beats convenience. Briesch, Chintagunta, and Fox (2009) affirm this by showing that customers would be willing to travel a considerable distance to stores that have a wide assortment of products and low price to make their purchases. However in overall, assortments have a stronger impact than prices in choosing stores to shop. For instance, the researchers found that the number of brands offered in a store had a positive influence on customer choice of retail stores. Value added services such as loyalty cards, home delivery, after sale service, discounts among others also influence a customer’s store choice (Thenmozhi & Dhanapal, 2012). Indeed Thenmozhi & Dhanapal, (2012) affirmed that value added services are a critical driver of consumer store selection. However, some customers may do all their shopping at a ...Show more
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Summary

Literature Review Name: Institution: Instructor: Course Code: Literature Review Introduction The retailing industry has continued to expand both in brand and competitiveness. Understanding factors that determine how customers choose to shop in retail stores is important for such retails in determining the kind of promotional activities that such a store would employ to not only attract customers but also leverage the organization’s competitive advantage further (Briesch, Chintagunta, & Fox, 2009; Bell, Corsten, & Knox, 2011)…
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