Research Center News: Issue 5 December 2008

Written by Sooksan Kantrabutra on 25 December 2008.

Publications
For Research Center News this month, Dr. Randall has new publications. Details are as follow:

1.) Title: Causal path modeling of grocery shopping in hypermarkets

Journal: The Journal of Product and Brand Management, Vol. 17 No. 5, 2008.

Authors:
Randall Shannon, College of Management, Mahidol University.
Rujirutana Mandhachitara, Pennsylvania State University, USA.

Abstracts
Purpose: To examine attitudinal and behavioral shopping patterns related to hypermarket shopping in an Asian market, which has undergone a revolutionary transition from traditional to modern trade food retailing in the past decade. The first class includes shopping enjoyment, risk aversion, price signaling, innovativeness, trust and future purchase intentions. The second group of behavioral shopping patterns includes advocacy, time, and money spent shopping.

Methodology: A sample of 244 shoppers was interviewed across Bangkok using a structured questionnaire through face to face personal interviews.

Findings: The study finds that grocery shoppers tend to be more risk averse when time pressured, but less risk averse if they are innovative. Bangkok Thais scoring high on innovativeness and shopping enjoyment and are more frequent patrons of hypermarkets than other grocery store formats. While a particular aspect of hypermarket grocery shopping behavior is found to relate to advocacy and future loyalty intentions, it does not contribute to enhanced store trust.

Research Limitations: While Thailand is part of Southeast Asia, not all countries share the same cultures or consumer behavior. Similarly, as Bangkok is a megacity, it cannot be said to represent rural parts of the country.

Practical Implications: As the majority of modern retailers are owned and managed by Western countries, the format is relatively new in most Asian markets. Their growth has not evolved naturally and may result in cross-cultural consumer behavior conflicts, thus findings help extant or new retailers better understand consumer behavior. Because of high risk aversion, private label brands may require that stores develop greater trust among consumers, perhaps through sampling or building awareness of the concept behind private label. Thai hypermarket shoppers appear driven more by convenience than by time pressure. Because they tend to shop in groups and enjoy this experience, retailers may want to consider more of the experiential or social aspects involved in shopping, rather than purely functional offerings.

Originality/Value: By applying predominantly Western theories to a developing Asian market, their generalizability can be tested.

*****

2.) Title: The Transformation of Food Retailing in Thailand, 1997-2007 (forthcoming)

Author: Randall Shannon, College of Management, Mahidol University

Abstract:

Prior to the economic crash in 1997, Thailand had been one of the fastest growing economies in the world. A number of foreign retailers invested in the market, which became easier after the crash due to relaxed ownership restrictions. Rapid expansion ensued, which led to complaints and attempts at regulation. This paper reviews the food retail scene in Thailand, highlighting what has happened in the past decade in terms of how retailers have adapted to cultural differences in consumer behavior, competition, and government regulation.

*****

Merry X’mas and Happy New Year
Chatchai Chatpinyakoop
Manager, CMMU Research Center
College of Management
Mahidol University