Constructing a balanced view of profit structure in grocery retailing

2017 ◽  
Vol 40 (7) ◽  
pp. 726-744
Author(s):  
Pilsik Choi

Purpose The purposes of this paper are to propose a different profitability metric (i.e. anchor category profits) at the category level based on the concept of anchor categories and to illustrate how such a metric can be calculated in field settings to offer a balanced view of profit structure from both the accounting and marketing perspectives. Design/methodology/approach First, the concept of anchor categories is developed drawing on anchor effects theory and automatic cognitive processing theory. Based on anchor categories, this paper proposes a formula for calculating anchor category profits. Using the data collected with a survey instrument, this paper calculates accounting profits and anchor category profits for two grocery stores. Findings The intra-store analysis of accounting profits and anchor category profits reveals that the two profit measures project different profit contribution patterns by product categories for each store. The inter-store analysis provides quite different, yet useful information about profit structures for the two grocery stores. Although the two stores are similar in terms of accounting profits, their anchor category profits show different pictures regarding profit contribution patters by product categories between the two stores, revealing that different categories attract customers to different stores. Practical/implications Comparing accounting profits and anchor category profits allows retail managers to identify traffic generator categories and cash generator categories, which helps retail managers develop more effective category management to increase storewide profits. Originality value This paper increases understanding of the relationship between product categories and store choice behavior by offering a theoretical rationale to explain why some product categories influence consumers’ store choice. This paper also proposes anchor category profits as a more implementation-friendly category-level profitability metric that combines accounting principles with consumers’ shopping trip planning behavior.

2017 ◽  
Vol 40 (7) ◽  
pp. 768-782 ◽  
Author(s):  
M. Deniz Dalman ◽  
Kartikeya Puranam

Purpose Prior research in ingredient branding (IB) has identified several important decision variables consumers use when evaluating IB alliances. This exploratory research aims to investigate the relationship between these variables and consumers’ buying likelihood of the IB alliance and the relative importance of these variables for low- vs high-involvement product categories. Design/methodology/approach A study with the participation of 458 mTurkers was conducted and the data were analyzed using random forests. Findings Findings reveal relative importance of different variables for an IB alliance and that these differ for low- vs high-involvement categories. Research limitations/implications Being exploratory in nature, this research has several limitations, such as using only one high- and one low-involvement categories. Practical implications Results of this research will help brand managers as they make decisions entering an IB alliance as well as with investing their budget on different aspects of their brand, and tailoring their marketing activities for low- vs high-involvement product categories. Originality/value To the best of authors’ knowledge, this paper is the first to discuss the relative importance of different decision variables in an IB context empirically.


2019 ◽  
Vol 40 (1) ◽  
pp. 85-96 ◽  
Author(s):  
SuJin Son

PurposeDrawing on social learning theory and social information processing theory, the purpose of this study is to examine how perceived supervisor’s voice behavior relates to employees’ own voice behavior both directly and indirectly through trust in supervisor. In particular, this study also investigates the moderating role of gender in the relationship between trust in supervisor and employee voice behavior. Further, this study proposes that gender moderates the indirect effect of perceived supervisor’s voice behavior on employee voice behavior via trust in supervisor.Design/methodology/approachThe proposed hypothesis was tested by using hierarchical regression analyses and Hayes’ PROCESS macro.FindingsThe results show that perceived supervisor’s voice behavior is positively related to an employee’s own voice behavior and trust in supervisors. In particular, trust in supervisors mediates the relationship between perceived supervisor’s voice behavior and employee’s own voice behavior. Additionally, the relationship between trust in supervisor and employees’ voice behavior was stronger for female employees.Originality/valueThe current study investigates employees’ perception of immediate supervisor’s voice behavior that encourages employees to speak up, thereby providing a more nuanced understanding of the factors that facilitate employee voice behavior. In particular, this study advances the understanding of how and why employees’ perception of supervisors’ voice behavior relates to employees’ voice behavior by examining the mediating and moderating factors.


2018 ◽  
Vol 120 (5) ◽  
pp. 1120-1131 ◽  
Author(s):  
Dwi Suhartanto ◽  
Brendan T. Chen ◽  
Zurinawati Mohi ◽  
Adila Sosianika

PurposeThe purpose of this paper is to examine a specialty food loyalty model which includes perceived quality, satisfaction, and motivation, and to assess the model’s applicability in two distinct groups of customers: tourists and residents.Design/methodology/approachData were collected from 455 specialty food customers in Bandung, Indonesia. Variance-based structural equation modeling (partial least squares (PLS)) was used to examine the relationship between the drivers (perceived quality, satisfaction and motivation) and loyalty according to the data presented by tourists and residents.FindingsThis study indicates that the perception of quality is an important factor affecting tourists’ and residents’ satisfaction with, and loyalty to, a product. Furthermore, this study suggests that motivation factors are important for tourists and residents in regard to developing loyalty to specialty foods.Practical implicationsThis study provides a venue for retail managers and producers to improve their business performance by developing specialty foods of high quality. To improve their quality, this research suggests that managers and retailers focus on innovation based on exotic and unique traditional food reflecting the richness of local culture. To ensure their loyalty, customers of specialty foods need to be motivated by internal and external factors.Originality/valueThis study is one of the first to examine the formation of specialty food loyalty in two distinct groups of customers: tourists and residents.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Xinfeng Ye ◽  
Shaohan Cai ◽  
Zhining Wang

Purpose Prior research has suggested that abusive supervision has negative impacts on various work outcomes. However, little attention has been paid to the relationship between abusive supervision and employees’ safety behaviour. The purpose of this study is, therefore, to address these limitations by developing and testing a theoretically based conceptual model that explicitly considers the underlying mechanism and boundary condition of the relationship between abusive supervision and safety behaviour of underground coal miners in China. Design/methodology/approach At Time 1, the authors conducted a survey of 630 employees to assess their supervisors’ abusive leadership behaviours, their own power distance beliefs and their self-reflection. At Time 2, the authros sent questionnaires to the leaders and invited them to evaluate employees’ safety behaviour in the workplace. After cleaning the survey data, the authors tested our model using a multi-level analysis on a sample (n = 458) of underground miners across 96 coal mining sites in China. Findings The authors propose that abusive supervision decreases employees’ safety compliance/participation by reducing reflection but strengthening rumination. The authors further find that the linkage from abusive supervision to reflection/rumination to safety compliance/participation is affected by power distance. Originality/value To the best of the authors’ knowledge, This is one of the first empirical studies to investigate the mediating effects of a deep cognitive processing variable – namely, self-reflection – and the moderating effects of power distance on the relationship between abusive supervision and safety behaviour.


2019 ◽  
Vol 39 (5) ◽  
pp. 787-814 ◽  
Author(s):  
Wantao Yu ◽  
Roberto Chavez ◽  
Mark Jacobs ◽  
Chee Yew Wong ◽  
Chunlin Yuan

Purpose It remains unclear how environmental scanning (ES) can generate firm performance through supply chain management (SCM) practices. The purpose of this paper is to investigate the effects of ES on operational performance through supply chain integration (SCI) and supply chain responsiveness (SCR). Design/methodology/approach The scanning–interpretation–action–performance (SIAP) model and organization information processing theory (OIPT) are used to explain the ES–SCI–SCR–performance (S–I–A–P) relationships, which were tested by structural equation modeling of survey data of 329 manufacturing firms in China. Findings The results indicate that ES has a significant positive effect on SCI and SCR. SCI is significantly and positively related to SCR. SCR partially mediates the relationship between ES and operational performance, and fully mediates the relationship between SCI and operational performance. Practical implications Supply chain managers should collaborate with senior executives to obtain signals from ES activities, as input for building SCI and SCR and use SCI as a joint interpretation mechanism of ES signals for developing SCR to reap operational advantages in the rapidly changing business environment. Originality/value Strategic management academics and practitioners have explicitly emphasized the importance of ES in developing strategic plans but are unsure about the role of SCM in creating operational advantages through ES. Using the SIAP model, this study theorizes and demonstrates how SCI and SCR transform signals from ES into operational performance. In doing so, a more precise application of OIPT is explicated in the supply chain context.


2018 ◽  
Vol 35 (4) ◽  
pp. 414-425 ◽  
Author(s):  
Sinove Marde ◽  
Claire Verite-Masserot

Purpose This paper aims to provide a scale of measure that is based on the antecedents of environmentally friendly consumption, which will measure multifaceted profiles and apply to several product categories over the long term. Design/methodology/approach The list of antecedents is derived from the literature and a qualitative study. Exploratory and confirmatory analyses using two samples of respondents are conducted to validate the scale. Findings The results suggest the use of a scale with three multi-dimensional facets when examining the antecedents of environmentally friendly consumption. The first facet is called “barriers to purchase” and has a four-dimensional structure; the second facet is called the “relationship with the product” and has a two-dimensional structure; and the third facet is called the “propensity to consume environmentally friendly products” and has a four-dimensional structure. Research limitations/implications Future research should seek to test and confirm the version of the global tool of measure proposed in this study. Practical implications Firms can use the tool to better understand the reasons to buy or not buy green products. They can now have multifaceted profiles to better comprehend environmentally aware consumption and to adapt their marketing strategies. Originality/value The tool of measure proposed here highlights the predictive indicators of green consumption based on its antecedents. Because these antecedents can differ not only in their nature but also in their intensity, combining them to develop a global tool is necessary.


2018 ◽  
Vol 29 (3) ◽  
pp. 608-628 ◽  
Author(s):  
Gensheng (Jason) Liu ◽  
Weiyong Zhang ◽  
Chundong Guo

PurposeEffective mass customization (MC) depends on accurately identifying customer needs and procuring appropriate components from supply base to manufacture the required product configurations in a timely manner. In essence, effective MC for a focal firm is contingent on effective supply chain management. However, extant literature is not very clear on how supply chain (SC) planning and integration activities affect MC. The purpose of this paper is to fill the gap by examining the impacts of SC-planning and SC-integration on MC.Design/methodology/approachOrganizational information processing theory is used to link SC-integration with MC ability, and a link is hypothesized between SC-planning and SC-integration. The structural equation model is then analyzed using data from 262 manufacturing plants.FindingsIt is found that SC-integration fully mediates the relationship between SC-planning and MC-ability.Research limitations/implicationsThe SC-integration measure is from a focal manufacturer’s standpoint, rather than the standpoint of the entire SC.Practical implicationsThe results indicate that using a SC perspective in planning activities helps a focal firm integrate with key stakeholders along the SC, which subsequently helps the firm mass customize. Practitioners should recognize the added importance of SC-planning and SC-integration if they want to mass customize.Originality/valueThis study provides a theoretical foundation for the relationship between SC-integration and MC. It also provides a more comprehensive conceptualization of SC-integration, which includes supplier integration, customer integration, as well as internal functional integration which was neglected in many previous studies.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mukta Srivastava ◽  
Sreeram Sivaramakrishnan

PurposeIt is empirically proven that enhanced engagement with a focal medium motivates a consumer to post electronic word-of-mouth (eWOM). However, what has not been explored is whether enhanced exposure to eWOM results in greater consumer brand engagement (CBE). While answering this question, this study also assesses the influence of eWOM and CBE on customer loyalty and satisfaction with the brand. The study has been conducted across two products –a search product and an experience product.Design/methodology/approachA model is developed and hypotheses are proposed using the Elaboration Likelihood Model which are then tested using PLS-SEM. Data was collected from 712 respondents across India.FindingsFindings indicate that eWOM significantly and positively affects CBE in both product categories. CBE significantly and positively influences both satisfaction and loyalty. eWOM is not significantly related to loyalty for both search and experience products. It is, however, found to be significantly and positively associated with satisfaction in case of the experience product, while a non-significant relationship was found for the search product.Research limitations/implicationsThe present study uses the survey method and PLS-SEM as the analysis technique which makes it correlational and confirmatory. The study, therefore, makes no firm claims on establishing causality.Originality/valueThe paper presents an original idea that CBE fully mediates the relationship between eWOM and satisfaction. This study attempts to fulfil a critical gap in the existing literature by establishing that eWOM generated by other users/consumers about a brand has a significant impact on CBE irrespective of the type of the product that is search or experience.


2014 ◽  
Vol 6 (4) ◽  
pp. 369-386 ◽  
Author(s):  
Johan Anselmsson ◽  
Ulf Johansson

Purpose – The overall purpose of this study is to enhance the understanding of customer perceived service quality within grocery retailing in a North European context. We do this by comparing customer perceived service quality evaluations of the traditional supermarket store with evaluations of the discount store. Design/methodology/approach – This study is based on empirical data from four store cases (two traditional and two discount stores), including information gained from a total of 542 respondents. In the study, we have used and tested a model of grocery store service quality, presented in Vázquez et al. (2001), with structural equation modelling (LISREL) and traditional multivariate analysis (SPSS). Findings – The ability of the Vázquez et al. (2001) model to capture customer perceived quality was below 40 per cent for both concepts which signals limited relevance and that important dimensions in the service evaluation could be missing for both of the two concepts, at least in a North European context. The results show that the traditional supermarket outperforms the discount stores on all service aspects but availability and reliability. When comparing the determinants of the service quality evaluation, the two concepts are very similar. Finally, the overall results regarding determinants of service quality show resemblance to retail studies in other countries and cultures. Research limitations/implications – This study has been limited to investigate service quality in Sweden and from two out of at least five possible retail concepts. As the explanatory power of the model is limited, future studies should explore other possible determinants of service quality, e.g. the role of technological innovations. Practical implications – Kotler and Keller (2012) proposes five generic differentiation strategies: product, service, people, channels and image. The results suggest that traditional grocery stores that choose to differentiate and position themselves by focusing on service rather than physical product differentiation should work with assortment issues as well. In order to decide which aspect of service to choose and promote, companies should emphasise differences that are considered important by customers, distinct from competitors and superior in terms of delivering the overall benefit – in this case – in terms of service quality. The results show that the policy dimension would satisfy all three criterions. Social implications – The study enhances the understanding of customer perceived service quality within grocery retailing, specifically in comparison between the supermarket and the discount store concept. Originality/value – This study is the first to focus on whether there is a divergence in service quality and service quality measuring between the traditional supermarket concept and the growing discount concept, and if so to what extent. Furthermore, it is a test of a model that has gained acceptance in Latin and South European countries, but in the context of Northern Europe.


2020 ◽  
Vol 43 (1) ◽  
pp. 263-278
Author(s):  
Wenyuan Huang ◽  
Jie Shen ◽  
Chuqin Yuan ◽  
Min Li

PurposeHow to foster voice behavior has always been a hot topic in organizational research; however, the mechanism through which performing decent work affects employee voice behavior remains to be fully understood. To address this deficiency, the current study investigates how basic need satisfaction may relate to perceived decent work and voice behavior and the moderating role of gender. Our research draws upon self-determination theory and social information processing theory.Design/methodology/approachThe theoretical model was tested using two-wave investigation data collected from a sample of 349 employees and 85 supervisors in Southwest China.FindingsDecent work perception was positively related to voice behavior, and this relationship was partially mediated by basic need satisfaction. In addition, the relationship between decent work perception and basic need satisfaction as well as the indirect effect of decent work perception on voice behavior via basic need satisfaction was stronger for men than for women.Originality/valueThis study highlights the pivotal roles of basic need satisfaction and gender in the consequences of decent work perception in the workplace. The authors provide new insights into the relationship between decent work perception and voice behavior and inspire scholars to elucidate other explanatory mechanisms in this link.


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