Case Study - Navarro
Case Study - Navarro
Case Study - Navarro
ABSTRACT:
The study investigates the role of hedonic shopping motivations, and supermarket attributes to
shopper loyalty to KCC Mall of General Santos City. Measures based on related literature and
studies were used in this study. A total of 50 shoppers from General Santos City were taken as
the participants. A survey questionnaire was adopted and used to achieve the objective of this
study. The Pearson correlation was then administered to identify the relationship between
hedonic shopping motivations, supermarket attributes, and shopper loyalty. Results show that
there is a strong significant correlation between the three variables. The supermarket attributes
were the key component in shopper loyalty, while hedonic shopping motivations to loyalty are
considered moderate. Therefore, findings of the study suggest to supermarket managers that they
must also position their marketing strategies on the hedonic motivation dimension to stimulate
hedonic shoppers. Also, because it was found that supermarket attributes are the key to loyalty,
managers must enhance the quality of supermarket attributes to increase the number of loyal
customers. Finally, limitations of the study are the small sample size and focused attention on
one specific mall. A bigger sample size and a comparison of different malls will direct to further
research. Utilitarian and hedonic motivations' relationship to supermarket attributes and loyalty
must also be considered in future investigation. Future researchers can also have behavioral
loyalty as the focus of their study as this paper is focused on attitudinal loyalty.
Keywords: Hedonic shopping motivations, supermarket attributes, loyalty, KCC Mall of
General Santos City
I. INTRODUCTION
The structure of the retail industry has undergone a lot of changes in recent decades. In
the Philippines, supermarkets continue to grow faster; hence their share in output and
employment grew considerably (Digal, L., 2001). The supermarket is a 400-square meter selling
area where at least 70% of goods sold are food and everyday commodities (Global Agricultural
Information Network, 2017). Though it is a food retailer, supermarkets also offer shoppers
various entertaining activities such as coffee shops, food chains or restaurants, and arcade
(Nguyen and Nguyen, 2003). From 2015 to 2016, there has been a 7% growth of Philippine
supermarkets having a 25% market share. They continue to be the most frequently visited
retailers sales reaching up to $10.21 billion as of 2017 (Jocelyn Claridades-Rubio, 2017).
And as the market changes due to massive competition, consumers have also become
critical when purchasing. The development made changes to consumer preferences (Bakırtaş, H.
& Divanoğlu, S.U., 2015), to simply say, it led to more demanding shoppers. Consumers today
are concerned with the quality and price of the products and the quality of the store itself
(Nguyen et al., 2007). Several studies (for instance, Bloemer and Odekerken-Schroder, 2002;
Koo, 2003) focused on consumer loyalty determinants such as store atmosphere, store images,
store satisfaction, service quality, perceived value, and attitudes toward a store. They discovered
the utilitarian and hedonic values as motives to shop.
“Motive," according to Utami (2010), is what makes a person undertake activities for a
specific objective. Today, more than just viewing shopping as a task to satisfy a need (described
as utilitarian shopping), consumers have come to realize shopping as an apparent and emotive
purchasing activity (described as hedonic shopping by Chakraborty, S. & Soodan, V., 2019).
Shoppers now view shopping as a recreational activity that brings pleasure, joy, and
entertainment (Lia Yuldinawati & Adelia Ayuningsari, 2015). These changes in consumer
behavior led to assortments of investigation about shopping motivations and supermarket
attributes.
Generally, the study aims to know the relationship between hedonic shopping
motivations, supermarket attributes, and shopper loyalty. Specifically, the study seeks:
Hypothesis
The following null hypothesis is formulated and will be tested at a 0.01 significance level:
Shopping motivations are the “drivers of behavior," which make consumers go shopping
to meet internal needs (Jin and Kim, 2003). Categories of shopping motivations are utilitarian
and hedonic drives (Childers et al., 2001; Kim, 2006; Babin et al., 1994). Tauber (1972) believed
that consumers are motivated by various psychological needs, such as personal and social. In
shopping motivation research, the Means-end Chain Theory of Gutman (1982) is used widely.
This theory sustains that the three interconnected levels: product attributes, consequences of use,
and personal values, represent how consumers relate to products (Copetti, 2005, Leāo & Mello,
2007). As stated in the paper of Leāo et al. (2007), the model's central aspect lies within
consumer shopping motivations that produce positive consequences and minimize the negative
ones.
Gutman (1982) suggested that values are dominant factors in the consumer buying
decisions and that they base considerations on purchasing a product or service based on its
functionality in satisfying the said values. In this study, the researcher view values as hedonic
shopping values. The association of hedonic shopping motivations to the means-end model
makes the analysis and interpretations of how consumers reflect shopping activities as self-
relevant possible. Hedonic shopping value is described by Metilda et al. (2015) as an action
backed by pleasure, somewhat impulsive, and unplanned. And because it is an end itself, it does
not necessarily need a purchase. Unlike utilitarian value, which is rather rational and task-
oriented, hedonic consumption dominates consumers' hearts and feelings (Chakraborty et al.,
2019; Bakirtaş et al., 2015).
Several studies (see for instance Nguyen et al., 2007; Yuldinawati et al., 2015; and Csilla
Horvátha & Feray Adıgüzelb, 2017) measured in their paper hedonic motivation‟s six
components: adventure shopping, gratification shopping, role shopping, value shopping, social
shopping, and idea shopping. Moreover, Tauber (1972) stated how a typical customer goes
shopping because he needs attention, wants to bond with his peer, desires to meet new people,
and feels leisure needs. Likewise, the study of Bloch, Ridgway, and Dawson (1994) showed that
consumers view a store as a place not only for shopping but also for socializing and bonding
with family and friends. With this, the entertainment aspect is considered a crucial competitive
tool (Arnold and Reynolds, 2003); hence, retailers focused on improving their shops'
entertainment dimensions (Nguyen et al., 2007).
Supermarket Attributes
Due to the inseparability of the market offers in the physical stores, buying decision-
making has become more complex. The concept of the servuction model (Eigler and Leangard,
1975) showed that servicescape (physical store), contact personnel are two of the four factors
that influence the overall experience (Hoffman, K. D. & Bateson, J., 2008). These store attributes
are likely to have a significant impact on store image. Store image is a combination of tangible
and intangible factors that the shoppers consider in selecting a retail outlet (Linquist, 1974;
Varley, 2005). Studies found a store image linked to consumer loyalty and patronage (Assael,
1992; Wong & Yu, 2003). Hence, understanding the store attributes‟ influence on overall
perception is critical to ensuring loyalty and store selection (Piyali Ghosh, Vibhuti Tripathi, &
Anil Kumar, 2010).
Shopper Loyalty
There has been no single framework used to examine consumer loyalty. Thus, after
combining and synthesizing various theories, researchers (Hassan, S. B., Ahmad, A.., & Siddhi,
P., 2019) have come to create UTAUT 2. The UTAUT 2 is grounded in the Unified Theory of
Acceptance and Use of Technology proposed by Venkatesh, Morris, Davis, & Davis (2003) to
assess consumer loyalty. The UTAUT seeks to examine seven factors affecting consumer
loyalty: performance expectancy, effort expectancy, social influence, facilitating condition, price
value, hedonic motivation, and habit. The extended UTAUT 2 model included customer
experience, customer satisfaction, and selected factors in the marketing mix (such as product and
price value) to examine customer loyalty.
There have been several types of research about hedonic motivations and their relation to
store attributes. While most of it was conducted in countries such as the USA and Europe (Jin
and Kim, 2003; Li et al., 2004), only a little attention was paid to the Philippines‟ markets, more
so of General Santos City. In this paper, the researcher views supermarket attributes and hedonic
shopping motivations as drivers for consumer loyalty. This paper seeks to bridge the gap by
examining the effect of hedonic shopping motivations and supermarket attributes on shoppers'
loyalty in KCC Mall of General Santos City.
III. METHODS
Results showed in Table 1 are the participants' profile in terms of gender, age,
educational attainment, and monthly income (of family, if student). The sample included 36
(72%) female and 14 (28%) male shoppers. A majority (80%, n=40) are aging from 0-25 years
old, while the other (20%, n=10) are aging from 26 and above. A total of 31 of these shoppers
are students, 6 are graduates, and 13 are undergraduates. Finally, 58% (n=29) of them earn
between 10,000 pesos and below, while the remaining 42% (n=21) goes with a monthly income
of 10,001 pesos and above.
Table 1: Profile of the participants
The items measuring hedonic shopping motivation components are based on Arnold and
Reynolds (2003, Nguyen et al., 2007). Results shown in table 2 are similar to the previous
findings (of Cinjarevic, Tatic, and Petric, 2011) where all components are within acceptable
limits. Moreover, value shopping got the highest mean of 4.02. The result would have
implications for the study since majority of the participants are a low-income earner. Findings of
Jones, Chern & Mustiful (n.d) suggest that low-income earners are not only price-sensitive; they
too tend to purchase the lowest-priced product among a given category. The value shoppers have
discounts as motives for their purchase.
Table 2 shows that adventure, role, value, and social, are at above-average level; while
gratification and idea shopping is at an average level. Overall, the shopper's hedonic motivations
are above average (67%) and average (33%).
Components in supermarket attributes are measured according to Koo (2003). The study
of Makhitha and Khumalo (2019) ranked store attributes according to their findings, having
employee services (EMS) as the first, followed by the facilities (FAC), then merchandise (MER),
and then price (Makhitha et al., 2019). Having different focus and participants, we can see
different standings from the past and present studies.
Table 3 shows the facilities to be the highest component (3.744), and then merchandise (3.71),
followed by after-sales services (3.49) and lastly, employee services (3.42). Finally, all
components of the supermarket attributes of KCC Mall of General Santos City are above-
average (100%).
Lastly, shopper loyalty measures are patterned in Sirohi, McLaughlin, and Wittink (1998)
and Zeithaml, Berry, and Parasuraman (1996). In this study, we examine loyalty in relation to
hedonic shopping motivation and supermarket attributes. As per the UTAUT2 and the study's
findings, the social influence, facilitating condition, price value, and hedonic motivation do
influence loyalty. Moreover, the result is the same as Gounaris et al. (2004) 's previous statement
that though loyalty does not always translate to purchase, loyal customers will be a source of
word-of-mouth. As reflected in the table, only 3.46 agree to shop in the said mall in the next few
weeks; but 3.9 of them agreed that they would promote the services to their family and friends.
As the table shows, shopper‟s loyalty to KCC Mall is above-average (with a mean of 3.644).
The results of hedonic sopping motivations, supermarket attributes, and loyalty are all at
above an average level; thus, proving the familiarity-liking theory (Rindfleisch and Inman,
1998). Given that KCC Supermarket has long been established in the city, residents are more
familiar with it and thus they are more loyal and more satisfied with the services it provides.
Also, this study's findings agreed with the concept of a servuction model (Eigler and Leangard,
1975). Results showed that the evaluation of store attributes and loyalty are at an above-average
level; therefore, we can conclude that supermarket attributes make the overall experience more
wholesome, eventually leading to more loyal shoppers (Hoffman, K. D. & Bateson, J., 2008).
Finally, the study's findings have also supported the means-end chain theory (Gutman, 1982). It
was found that consumer shopping motivations in General Santos City are based on the
production of positive consequence, which we translate to pleasure, convenience, and
satisfaction.
The table below shows a positive relationship between all variables. The correlation between
supermarket attributes and shopper loyalty is the strongest (.791), which is followed by the
correlation between hedonic shopping motivation and shopper loyalty (.690) and then hedonic
motivation and supermarket attribute (.540).
The strong relationship between supermarket attributes and loyalty states that the mall's
primary services (e.g., making needs/demands readily available for purchase) matter more than
that of pleasure and joy experienced while purchasing. This means that though there is a
significant relationship between hedonic motivations and loyalty, its role is moderate compared
to that of supermarket attributes. The same is true with the findings of Nguyen et al. (2007). With
this, the evidence of the role of hedonic shopping motivation and supermarket attributes to
shopper loyalty is provided.
Moreover, previous studies can also find this relationship (Assael, 1992; Wong & Yu,
2003; Koo, 2003; Sirgy, Grewal, and Mangleburg, 2000; Wakefield and Baker, 1998). While
Dawson, Bloch, and Ridway (1990) and Arnold and Reynolds (2003) reflected on their papers,
the association of supermarket attributes and hedonic shopping motivations. The said
relationship between store attributes and hedonic shopping means that shoppers of KCC Mall of
General Santos City view the mall as a place not only for obtaining their needs but also for
socialization and entertainment. The mall's aesthetics and entertaining values, especially the
services, brand variety, and convenience it offers to its shoppers, contribute to shopper‟s loyalty.
Therefore, the pieces of evidence from previous and present studies suggest that shoppers
nowadays are indeed becoming more hedonic. They now transitioned from being rational in
shopping to shopping as a recreational activity (Lia Yuldinawati & Adelia Ayuningsari, 2015).
This trend will continue to grow as businesses also shift their marketing efforts to promoting
these hedonic shopping values. Further, since there is a positive association between hedonic
motivation and supermarket attributes, these values will continue to become drivers for
shoppers‟ retail selection. Note that there is a strong relationship between store attributes and
loyalty. Eventually, as hedonic shoppers give more attention to the quality of supermarket
attributes, there will be more loyal customers if the retailer also gives attention to the quality of
their stores.
The findings of this study will have many implications for businesses, especially for
supermarket managers. First, managers must be able to examine the entertaining shopping
experiences of their shoppers. Their focus on promotion and marketing efforts must also include
hedonic shoppers aside from the utilitarian ones. Second, by focusing on enhancing the quality of
their store attributes such as facilities, employee service, after-sales service, and merchandise,
they will contribute to their shoppers' loyalty. In the case of this study, employee services got the
lowest mean. This would suggest that managers will have to invest more training and motivation
for their employees to provide a more quality employee service to shoppers. In general, by
improving store attributes by creating a good shopping atmosphere (e.g., functioning facilities,
right information available such as signage and labels, easy transactions, good employee, etc.),
businesses will increase the frequency of visits.
Finally, hedonic motivations are said to be one of the drivers of impulse buying and
customer satisfaction. Horvath et al. (2017) found gratification seeking, idea shopping, and role
play as the vital hedonic motivations contributing to impulse buying behavior. On the other hand,
Bakırtaş et al. (2015) revealed that adventure shopping positively impacts customer satisfaction
and loyalty. Therefore, by increasing stimulants of hedonic motivations in stores, supermarket
managers will make customers stay and browse longer and be motivated to buy more. These
stimulants can be done to create a shopping environment that promotes socialization, fun, and
more appealing (window) display, up-to-date products and designs, etc. Also, because value
shopping got the highest mean, supermarket managers must continue to have promos and
discounts. Product bundling and free items for purchase can have a significant effect on
shopper‟s buying motivation. The effective delivery of these hedonic shopping values will bring
about significant outcomes such as loyalty, positive word-of-mouth, and profit (Carpenter and
Fairhurst, 2005; Sirohi, Mclaughlin Wittink, 1998; Nguyen et al., 2007).
Recommendation: The study is bound to many limitations. Firstly, it focuses only on one
market, notably the KCC Mall of GenSan. This limit suggests a need for examination among
other markets. Comparing can also be applied for a broader picture of hedonic shopping
motivations and a more in-depth understanding of it. Second, further examination with more
significant samples can also be employed to increase the findings' significance level. Third,
another study can also have their respondents be niche, specifically to representatives doing
groceries for their household, having more precise observations. Fourth, because this study is
limited only to hedonic shopping motivations, future research can have hedonic and utilitarian
shopping motivations. This would allow comparisons between the two as they might have
different implications to other variables (supermarket attributes and shopper loyalty), and better
understand different types of shoppers. Finally, the study is only concerned with attitudinal
loyalty; thus, other research concerning behavioral loyalty can also be conducted for further
investigation.
References:
Bakırtaş, H. & Divanoğlu, S.U., 2015. The effect of hedonic shopping motivation on consumer
satisfaction and consumer loyalty. International Journal of Asian Social Science.
3(7):1522-1534. http://www.aessweb.com/pdf-files/ijass%203(7),%201522-1534.pdf
Cinjarevic, Tatic & Petric (2011). See it, like it, buy it! Hedonic shopping motivations and
impulse buying. Economic Review: Journal of Economics and Business. Vol. 09, Iss. 1, pp.
3-15. https://www.econstor.eu/bitstream/10419/193794/1/econ-review-v09-i1-p003-
015.pdf
Chakraborty, S. & Soodan, V. (2019). Examining utilitarian and hedonic motivations in online
shopping in India: moderating effect of product browsing behavior. International Journal
of Recent Technology and Engineering (IJRTE), Volume-8, Issue- 1C2, pp. 117-125.
https://bit.ly/2ISFcuO
Digal, L. (2001). An analysis of the structure of the Philippine retail food industry. Philippine
Journal of Development. Number 51, Volume XXVIII, No. 1. Pp. 14-54.
https://bit.ly/3mqC2MI
Ghosh, P., Tripathi, V. & Kumar, A. (2010). Customer expectations of store attributes: A study
of organized retail outlets in India. Springer Link.
https://link.springer.com/article/10.1057/rlp.2009.27
General Instruction: This is a 4-section questionnaire and you are requested to answer all areas
as freely and honestly as possible. The researcher values the opinion you provide. All
information will be confidential and will be used only for the purpose of this study. You can
answer by checking the box that corresponds to your chosen answer. Thank you!
1. Gender Female
Male
2. Age Younger (25 years and below)
Older (26 years and above)
3. Educational Attainment Highschool
College
Undergraduate
Graduate
4. Monthly Income (of family if student) Low income earner (10,000 and below)
High income earner (10,001 and above)
Instruction: In the following sections, you are requested to rate the provided statements
according to the scale: 1 – Strongly Disagree, 2 – Disagree, 3 – Neutral, 4 – Agree, 5 – Strongly
Agree.