Using Transaction Utility Approach for Retail Format Decision

Transaction Utility theory was propounded by Thaler to explain that the value derived by a customer from an exchange consists of two drivers: Acquisition Utilities and Transaction utilities. Acquisition utility represents the economic gain or loss from the transaction. Where as transaction utility is associated with purchase or (sale) and represents the pleasure (or displeasure) of the financial deal per se and is a function of the difference between the selling price and the reference price. Choice of a format has been studied from several dimensions including the cost and effort as well as the non-monetary values. However, the studies that present the complete picture and combine the aspects of the tangible as well as intangible values derived out of the shopping process are limited. Most of the studies, all of them from the developed economies, have focussed on the selection of a store. They represent a scenario where formats have stabilised. However, in Indian scenario formats have been found to be influencing the choice of store as well as orientation of the shoppers. Also, retailers are experimenting with alternate format with differing success rates. The author has also not found a study that has applied this theory. It is felt that the Transactional Utility Theory may provide a suitable approach for making format decisions.

IS ONLINE GROCERY SHOPPING INCREASING IN STRENGTH?

Online grocery shopping is a relatively new innovation with regard to the way in which one purchases groceries. Some interesting concepts- designed to enhance the process of making grocery products available for consumption of the ever-changing consumer- have entered the food distribution industry channels. A telephone survey was conducted in the Boston trading area to determine the profile of online grocery consumers who are familiar with online grocery shopping.Agribusiness, Research and Development/Tech Change/Emerging Technologies,

The Spanish E-retailing Customers Segmentation

This article analyses different factors that influence the purchasing behaviour of online supermarket customers. These factors are related to both the appearance of the website as well as the processes that take place when making the purchase. Based on these analyses, the various groups of consumers with homogenous behaviour are studied. The analysis also allows the quality of the service offered by this kind of establishment to be defined, as well as the main dimensions in which it develops. In the conclusions, factors which should influence the manager of an online supermarket to improve the quality of its service are given.Virtual supermarket; segmentation; Internet; E-commerce; marketing.

Increasing Access to Food: A Comprehensive Report on Food Supply Options

Access to food is one of the most important aspects of a healthy, sustainable community. Grocery stores and other suppliers can serve as an economic anchor to provide social benefits to communities. Unfortunately, many communities do not have convenient and/or affordable access to grocery items, particularly fresh produce. As part of Virginia Commonwealth University\u27s Fall 2019 graduate course on Urban Commercial Revitalization, class members researched 13 retail and other food access options, which are described in this report. Each chapter covers a food access option and provides basic information that will be useful to individuals, organizations, or government agencies that wish to attract and/or develop grocery operations in their communities

E-COMMERCE: A NEW BUSINESS MODEL FOR THE FOOD SUPPLY/DEMAND CHAIN

The use of electronic commerce for quality control and cost cutting efficiencies by the food and agricultural industries in the United States is the focus of this paper. The food industry engages in e-commerce through 1.) Internet shopping for consumers called business-to-consumer (B2C) e-commerce 2.) Business-to-business (B2B) Internet market discovery exchanges used by food suppliers at any point in the supply chain, and 3.) Business-to-business (B2B) relationships that reduce costs and increase efficiencies in the procurement, storage and delivery of food to retail stores or distribution centers. This third use of e-commerce is the most highly developed and widely adopted. It allows retailers to share information about consumers' purchases and preferences with food manufacturers and farmers and for tracking food products' characteristics, source, and movement from production to consumer. This circle of information allows high quality and consistent products to be consumed at lower prices. This paper is about the development of e-commerce in the food industry, the economic concepts and goals that it meets, and the changes it brings to the industry. E-commerce both fosters and demands vertical coordination. It favors consolidation of firms. It changes the business culture from one of adversarial relationships to one of cooperation and trust. It changes the historical supply chain into a supply/demand loop while it lowers the cost of food. Policy issues arise around monopoly power, privacy, a diminution of variety, and the demise of small, undercapitalized firms.Industrial Organization, Marketing,

RFID Demystified: Part 3. Company Case Studies.

In the previous two parts of RFID Demystified we have discussed the technology, possible benefits and areas of application for with Radio Frequency Identification (RFID) systems. In this final part we review Company Case-Studies of those who have decided to apply the technology within their organisation. It will be seen that considerable benefits are being experienced within some organisations, pilot applications are increasing our learning and providing a foundation for the future success of projects in this area

Market Access for Local Food through the Conventional Food Supply Chain

The paper examines relationships and linkages between the conventional supply chain actors (wholesalers and retailers) and local food producers based on a study conducted in Southeast Michigan. A case study approach was employed to examine chain actors’ operations and to explore their roles, experiences and perceptions about local foods. Semi-structured interviews were conducted with the owners and managers of eleven retailers and six wholesalers. The study found differences in local food perceptions, buying experiences and perceived benefits and risks associated with local food sourcing activities. The study also identified some competition between local independent food retailers and alternative market outlets. The major implication of the findings is that producers need to provide additional market services and develop trust-based relationships with their buyers to create better market access for local foods.local food, supply chain, buying local, Agricultural and Food Policy, Community/Rural/Urban Development, Consumer/Household Economics, Demand and Price Analysis, Financial Economics,

The characterisation of the Danish e-business - Aarstiderne as an alternative food network: A case study

The object of this case study is Aarstiderne, a Danish organic food company delivering 30,000 boxes per week. The study aims to characterise this company within the context of alternative food chains, using specific environmental, economic and social criteria. During the course of the study, 19 interviews were conducted with company members, clients, suppliers, and researchers. In addition, a life cycle analysis and a price comparison for two box types were conducted. The results of the study focus on the environmental, economic, and social impacts of the company on its stakeholders throughout the food network. These results indicate how the company can be characterised in relation to other alternative food chains, with specific attention paid to how this food chain addresses some limitations of supermarket and Community Supported Agriculture food distribution models. Lastly, a comparison of the company’s own ideals to its practices is made and some suggestions for improved coherence between ideals, practices and impacts on sustainability are put forth

Sale the seven Cs: Teaching/training aid for the (e-)retail mix

The ‘4Ps’ of the marketing mix have long been popular with students, tutors, trainers and practitioners as a learning and teaching aid. The purpose of this paper is to present an equivalent tool for retail and e-retail: ‘Sale the 7Cs’. The approach is by reference to other authors’ versions of the marketing, retail and e-retail mixes, distilled into a simplified framework: C1 Convenience; C2 Customer value and benefit; C3 Cost to the customer; C4 Computing and category management; C5 Customer franchise; C6 Customer care and service; C7 Communication and customer relationships. This simplified mnemonic is new for (e-)retail. Mini case examples are used to illustrate the applicability. These have a practical value for trainers and educators as specimen answers to activity exercises. Retailers may find the convenient 7Cs structure useful when planning strategies and tactics