GeoJournal 38.2: 167-174. © 1996 (February) Kluwer Academic Publishers. Printed in the Netherlands.

Policy concerns in Bulgarian food distribution

Mueller, Rene, Dr.; Mueller, James, Dr., Department of Business Administration, Thomas More College, Crestview Hills, KY 41017-3428, USA

ABSTRACT: The Bulgarian food distribution system, like those of its Central and East European neighbours, lags behind the West in critical performance areas. Previous research quantified Central and East European food distribution deficiencies on the basis of a five factor model. This study investigates the attitudes of 250 Bulgarian consumers using these same five factors: food processing, quality, cost, availability and retailing. The findings show that the Bulgarian food distribution system does not satisfy consumer wants as well as do systems in other former communist countries in four of the five factors. At the same time, Bulgarian consumers are more satisfied than UK and US consumers in the system's ability to make some foods available. The study also shows that Bulgarian consumers who use privatised shops perceive the system more positively than those who use state and co- operative outlets. The implications of these and other findings are discussed in terms of critical policy concerns for government and industry stakeholders.

Introduction

The agriculture and food (agro-food) sectors play an integral part in the economies of Central and Eastern Europe, ranking either first or second in terms of output and employment in every country. Since opening up to the West, however, the entire food system has come under attack f rom foreign pro- ducers, wholesalers and retailers, who have been able to exploit inefficiencies by offering consumers a greater range of higher quality foods at a lower price in a nicer atmosphere. Identifying specific com- petitive weaknesses in the food distribution system, then, has become a major policy concern for decision makers in the agro-food sectors in all of the coun- tries in the region.

In response to growing concerns f rom East European governments and agro-food businesses, a number of studies have been launched. Academics have explored inefficiencies in the food sectors in terms of production (Wadekin 1990), retailing (Krasny 1993; Seitz 1993; Fulop 1991) and dis- tribution (Jones 1993; Young 1993; Morton 1993). Descriptive analyses have also been commissioned by major international aid organisations (OECD 1992; OECD 1993; Empir ica 1991; CEC 1991). These studies identify East-West efficiency gaps at different levels of the food distribution value chain. To date, most of the Western business interest has

been focused on the East Central European countries (i.e., Czechia, Poland, Hungary and Slovakia) and Russia because of their perceived market potential and/or the speed at which reforms have been imple- mented. It is interesting, however, to examine the situation in a country which has received compara- tively little Western investment and academic atten- tion. Although many food distribution problems are common to all the former communis t nations, this paper highlights the situation in Bulgaria.

Bulgaria: The background

Bulgaria has always had a strong agriculture sector: it is endowed with a mild climate similar to Southern Europe (humidity is comparable to the Netherlands) and also benefits from a rich soil and a high propor- tion of arable land. Potentially rich, Bulgarian agri- culture could feed the nation, absorb some of the unemployment and improve the foreign exchange. The current situation, however, does not reflect Bulgaria 's capabilities, as its exist ing agro-food industries are struggling to survive.

Having begun the nineteenth century as the most backward East European country, Bulgaria was able to rapidly industrialise its peasant economy by fol- lowing a hard-line Soviet strategy of industrialisation (Lavigne 1974). Initially, agriculture was given the role of driving the industrialisation process (Zwass

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1984) thanks to rapid investment in agro-food industries, constant reorganisation of the farms and increased chemicalisation of agriculture. Until recently, Bulgarian agriculture was considered a success story.

Despite support for reforms initiated periodically (e.g., the 1965 agricultural reforms, 1970/1 and 1977/ 8 consolidation efforts, the 1973 decree allowing small-plot production, the 1979 New Economic Mechanism, and 1987 financial self-sufficiency efforts), the role of market forces never expanded as planned and the autonomy of enterprises and their subunits never materialised (Cochrane 1990). Bulgarian agriculture was plagued by labour short- ages, declining growth in investment, low capital productivity, and an escalation of producer costs (Zwass 1984; Cochrane 1990; Davidova 1991; OECD 1992; 1993). The food distribution system was also poorly organised; the transportation of agricultural and food products, its storage, and its procurement was inadequate and food processing inefficient.

The rapid demise of the Soviet-style economic system hit Bulgaria especially hard. According to the OECD (1992), Bulgaria faced possibly the worst external circumstances: it had a heavy trade orienta- tion towards the East; its energy intensive industries were especially vulnerable to new terms of trade with Russia; its external debt was high; the breakaway from communism was not clean; and it lacked expe- rience at making meaningful reforms. These forces combined to create a chaotic, recessionary situation from which the country is just now recovering. Bulgarian food production began to fall drastically because enterprises could not get necessary raw materials. Shortages caused prices to skyrocket. Farmers also began hoarding as they waited for the government to pass long-delayed reforms that would enable them to sell at market prices. There was a shortage of most of the basic foods and, for the first time in Bulgaria's history, there was 'talk of famine' (Champion 1990). There were increased deaths related to spoiled and contaminated foods, while epi- demics (including trichinosis) were also on the rise (Williams 1991).

Although the situation has improved significantly since 1990/1, Bulgarian agro-food industries are still struggling to survive. In addition to political, economic, and social upheavals and industry reor- ganisations, increased foreign competition in its domestic and foreign markets has served to stall the fragile recovery. Domestic enterprises in the agro-food sector would certainly benefit if specific weaknesses in the food distribution chain could be identified. Scarce resources could then be more effec- tively targeted at the critical need areas. This paper seeks to assist government and industry policy- makers by highlighting critical needs in the food

distribution system as identified by the Bulgarian consumers.

Methodology

Because every level of physical supply and dis- tribution is affected by inefficiency and ineffective- ness, tackling the entire food chain for immediate improvement would be impossible; Bulgaria has neither the resources nor necessary know-how to change the system rapidly. Detecting priority areas is, however, possible. Although consumer percep- tions have rarely been used to identify food dis- tribution inefficiencies, their views are particularly valuable. Failure at any stage causes poor perfor- mance for the system as a whole, which is more recognisable at the last link in the food chain, the customer. Furthermore, it is consumers who ulti- mately make the decision when, where, and what foods to purchase. In order to survive, the remaining agriculture and food businesses must be able to make available consumer-attractive food products. Use of indigenous responses as measures also reduces cultural bias which a foreign researcher might inad- vertently introduce.

Distribution is known to be influenced by social, political, and economic factors (Kaynak 1988). To discern common gaps in food distribution effec- tiveness or efficiency, a sample from each of the eight East European countries would, ideally, have been taken. Financial and logistical constraints limited the study to three East European countries: Bulgaria, Czechia and Hungary. The use of these countries ensured representation of the major diver- gent cultural, political development and economic advancement. Given the communality of distribution development and advancement in the advanced industrialised Western countries (White 1984; Kaynak 1988) and out of convenience, the US and UK were chosen to represent the West. The total sample was 1,259 food shoppers with approximately 250 in each country studied.

Sampling took place in the summer 1993 in Eastern Europe (Budapest, Prague and Sofia), Leicester (UK), and Wilmington, North Carolina (USA). A quota sample with two requirements was used. First, 90 percent of the respondents had to do the household food shopping. Second, an equal number of respondents in each relevant age category was mandated. The 56 scale items used on the ques- tionnaire emerged from a literature review and from group discussions with Western academics and food industry participants. The items suggested were then reviewed by several East Europeans who added a few items to the list. The selected statements related to the availability, cost, quality, and packaging of par- ticular types of foods, food processing and food

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promotion. There were also statements relating to food retailing. Respondents were asked to indicate, using a scale between 1 (strongly agree) and 7 (strongly disagree), the degree to which they agreed with the statements.

In any cross-cultural research activity, particular attention should be paid as to whether construct equivalence exists (Berry 1969); in this case whether the function and concept of food distribution is the same and whether psychometric properties under- lying dimensions of a phenomena exhibited in the data are similar. Few of the studies mentioned have addressed these issues, despite concern over the applicability of Western assessment and prescriptions for foreign food systems (Savitt 1994). This analysis found a relatively high degree of construct equiva- lence (see Appendix 2).

Consumer perceptions of food distribution

The process of factor analysis obviates the problem of multiple counting and correlation of scale items, and was therefore deemed more appropriate than a simple comparison of means. The original 56- scale items on the questionnaire were subsequently reduced to just five factors: food processing, food quality, food cost, availability of fruit and vegetables, and retailing (see Table 1). The use of mean factor scores (value of the scale items) enabled a quantita- tive measure of efficiency, based on consumer per- ceptions, to be derived. The index, calculated by adding the factor scores, shows that Bulgarians perceive their system to be the poorest (index = 1.36 from Table 1).

The findings support many of the observations reported in the business and academic press. Bul- garian food shoppers view their food distribution system more unfavourably than do some of the other East European countries. In most instances there are clear regional differences in perception, although the

magnitude of the difference is less than anticipated. This can be explained by variations in levels of consumer expectations across cultures. Western con- sumers have had more experience with advanced levels of food manufacture and retailing and, there- fore, appear to have become more discriminating in their tastes and demands than their Central and East European counterparts. This is perhaps best illus- trated by the answers given in relation to food cost. In the West, the proportion of disposable income spent on food is less than one-third of what is spent in Bulgaria, yet the relative costliness of food is not reflected in consumers mean answers, i.e., Western consumers also perceive food as being expensive (see Appendix 1 for mean responses). Instances of other antithetical responses are noted in the ensuing dis- cussion.

A major unanticipated finding about East European food shopping was the number of respon- dents who do their main food shopping at private shops. Privatisation figures available from the Statis- tical Office in Sofia suggest the number of privatised and restituted facilities in the retail sector is relatively small (Table 2). According to this survey, 79 percent of the Bulgarians use private food shops for their main shopping. One possible explanation is the lack of information regarding retailing in Bulgaria and, in particular, the extensive leasing of shops from state enterprises which has received little documen- tation. When asked directly, over 90 percent of the Bulgarian respondents stated that private retailers offer the best quality, variety, cost and service. To judge how this might affect overall perceptions of food distribution answers, cross-tabulations showing the mean factor scores by type of shop used for respondents' main food shopping (private, co-oper- ative or state) were executed. The results show inter- esting differences in opinion (Table 3). Those using private retailers are far more likely to perceive food distribution factors positively (index 1.04 versus 2.26 and 2.27).

Table 1. Mean factor scores and indexes

Bulgaria East West Europe" Europe b

Processing 1.22 0.40 -0.60 Quality 0.39 0.26 -0.36 Cost 0.34 0.23 -0.34 AFV c -0.38 -0.05 0.08 Retailing -0.21 0.24 -0.35 Index 1.36 1.08 -1.57

a Sample from Bulgaria, Czechia and Hungary. b Sample from UK and USA. c Availability of fruit and vegetables. Negative numbers mean that consumers answered favour- ably.

Table 2. Privatisation of selected agro-food enterprises in Bulgaria

privatised restituted facilities facilities

1991-1993 November 1993

Retail outlets 50 6032 Restaurants 30 113 Storage facilities None reported 723 Grain mills None reported 561 Bakeries None reported 91 Dairy processing None reported 18 Transport services None reported 19

Source: Centre for the Study of Democracy (1993).

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Table 3. Factor scores by type of store most frequently used

Private State Cooperative

Processing Quality Cost Fruit/vegetables available Retailing Index

1.26 1.23 1.19 0.30 0.41 0.68 0.29 0.51 0.30

-0.48 0.23 -0. l 8 -0.33 -0.12 0.28

1.04 2.26 2.27

A negative number means that consumers answered favourably.

Food processing

Despite food availability improvements, East Euro- peans still do not enjoy the range and variety of food products that consumers in the West enjoy, especially in terms of processed foods. These differences are articulated best by shoppers themselves. Though the East European scores are poor in general, the Bulgarian score is, by far, the poorest. The sophisti- cation and quality of East European food processors is known to lag behind the West (OECD 1993). In many cases the processing plants are old and the pro- cessing technology is out-dated. To counter this, most countries are actively soliciting Western joint-venture partners in order to up-date their industries quickly with Western food processing technology and know- how (DTI 1990; US Commercial Section 1991). To date, Bulgaria has been less successful in attracting foreign investment and its food processing sector is, therefore, improving more slowly than in the Central European countries (EEIM Database 1994).

Many scales relating to dairy products load on the processing factor; dairy production in Bulgaria is indeed very primitive. Until recently, there were only two types of cheese (white and yellow) and one type of yoghurt. According to industry participants interviewed in 1994, most dairy producers still fail to offer an ample range of dairy products. However, some dairy processors are beginning to introduce foreign cheeses and flavoured yoghurts. It should also be noted that there is a significant difference between Bulgaria and the other East European coun- tries when one examines the individual variables relating to the range of foods. In particular, Bulgarians perceive the range of prepared foods, frozen foods, and milk products to be very narrow.

Part of the problem should also be attributed to the poor quality of food available for processing. Under the old system, the state purchasing programme did not recognise quality differences. Likewise, food trade was conducted with other communist nations where quantity, not quality, was stressed, Farms, therefore, had little incentive to provide high quality produce. The packaging of food is also inadequate. Many respondents feel that packaging is not attrac- tive nor does it protect the food. Much of the food

is preserved in glass jars which have lids that leak, and canned foods have nondescript labels that fre- quently fall off due to poor quality of adhesives used.

The domestic and retail infrastructure must also share some of the responsibility for the limited range of processed foods. Many retail outlets and homes have neither the space nor the cooling facilities nec- essary for the stocking of a wider range of processed products. Low incidence of some white goods (e.g. microwave ovens) in homes (Marks 1992) also impacts on the availability of the more heavily processed convenience foods.

Food quality

A major contributor to low quality perceptions in the region has been the lack of quality control indices in the state procurement system. Food producers have not been penalised for inferior production; the state buys what the farms and food processors produce. One needs only to look at the condition of fresh produce in retail outlets to verify this. Much of the produce arrives at the retailer bruised and blemished. In most instances, it also arrives unwashed and is sold to the consumer in that state.

Of the countries surveyed, Bulgarians rated quality scales the worst overall. In particular, dairy products and fruit and vegetable products were perceived to be of the poorest quality. The validation interviews revealed that many Bulgarians feel they must boil their milk before consuming it. Dairy processors have commented that while it is not necessary to boil dairy products, many Bulgarians do so out of habit; being just one generation away from subsistence farming, where milk was always boiled. Other sources suggest that the 1990/1991 increases in death and disease related to spoiled foods and food parasites make con- sumers sceptical of food quality in general and milk quality in particular. Regardless, the fact that many Bulgarians do boil their milk suggests serious per- ception problems with dairy quality.

Availability

Food availability has rarely been a problem in Bulgaria as the country is graced with good soil and a favourable climate. Though the collapse of com- munism did cause immediate food availability problems, the situation has since improved. This is reflected best in consumers ' perceptions. In this analysis, availability is perceived in terms of fruits and vegetables. Although the actual situation is much better in the West and in the other East European countries sampled, the Bulgarians responded most favourably to the availability factor. Several reasons can be found for the anomaly.

First, though many of the State and co-operative farms are still oriented towards coarse production, e.g., carrots, cabbage and apples which their retail organisations stock, new retail outlets freed from vertical integration with farms and wholesalers stock a wider range of fruits and vegetables. Trade liber- alisation has also served to increase the variety of produce available to both wholesalers and retailers. Thus there has been a dramatic improvement in the availability of all types of fruits and vegetables. Second, the Bulgarian climate and land is especially conducive to fruit and vegetable production and it is in this area that the country has a comparative advan- tage. Additionally, many Bulgarians have a dacha or second home where they can produce their own food. In fact, a significant amount of this small-plot pro- duction ends up in the food system (Tables 4 and 5). As this survey was conducted in the summer of 1993, consumer perceptions were affected not only by improvements in the distribution system but also by the contribution of their own production efforts.

A final reason for the anomaly is that Bulgaria is

Table 4. Private sector share of Bulgarian food production

Product and private-sector share of production (%)

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relatively isolated from Western Europe geographi- cally and culturally. Thus, Bulgarian consumers are unlikely to be aware of the wide variety of fruits and vegetables available elsewhere. This is in con- trast to the East Central European countries where proximity to Germany and Austria makes consumers increasingly aware of the greater range of produce available.

Food cos~

One function of a distribution system is to make food available at the 'right' cost. In the advanced indus- trialised West modestly-rising food costs have been more than matched by increases in income. As a result, food costs represent less than 20 percent of total income. According to amalgamated statistics, the percentage spent on food and drinks in Eastern Europe is approximately twice that which is spent in the West (Euromonitor 1992). These latest figures, however, do not reflect the recent price reforms and subsidy reductions for food. In instances such as Bulgaria, the proportion of income spent on food has risen substantially more (OECD 1993). It is also worth noting that recent price liberalisation and subsidy reductions mean that the proportion of income spent on food is expected to remain relatively high in the short to medium term. Bulgarians, not sur- prisingly, rate food cost poorly (0.34).

Retailing

Due to the lower priority accorded the distributive trades under the Marxist-Leninist economic system, service elements have been systematically neglected; retailing has been plagued by under-staffing, poor

Apricots 54 Cherries Grapes 51 Honey Meat (Chicken) 56 Meat (Pork) Melons 55 Milk (Goat/Sheep) Pears 81 Peppers Potatoes 63 Tomatoes

66 Eggs 49 72 Maize 65 46 Meat (all types) 45 62 Milk (all types) 25 52 Plums 65 42

Source: Bulgarian Statistical Office (1991).

Table 5. Private production purchased by the state

Product and share of private production purchased by the state (%)

Apples 64 Cotton Grapes 57 Livestock/poultry Peaches 56 Sugar Beet Tobacco 100 Tomatoes

100 Eggs 64 77 Milk 80 93 Sunflowers 91 71 Wheat 51

Source: Bulgarian Statistical Office (1991).

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pay and low occupational status (Jones 1991). Overall, East Europeans hold similar views and find most aspects relating to retailing lacking. Bulgarians, however, perceive retailing more favourably (index = -0.21 from Table 1). Again, this is probably due to the large number of respondents that shop at private rather than cooperative or state shops.

Since their arrival in the 1970s, farmers' markets have played an important role in many East European food retailing systems by offering both higher quality produce and greater variety. Most countries have farmers' markets which are frequented by consumers and form an important part of urban food distribu- tion. Almost one-third of the Bulgarian respondents replied that they shop regularly at these markets. Farmers' markets have played a valuable role in food distribution by helping to extend the range and quality of foods, especially fruits and vegetables, on offer.

Summary of findings: Agenda for policy makes

Western perceptions about socialist food distribu- tion and food retailing as being relatively substan- dard are supported by the Bulgarian consumer survey. Bulgarians have a lower regard for their domestic food distribution performance than is the case with other East European and Western nations included in the survey. In particular, consumers are not satis- fied with food processing, food quality or food cost. Importantly, availability of food, especially fruits and vegetables, is perceived positively. Furthermore, con- sumers who use private food shops are more likely to perceive food distribution positively.

The onus for the inability of the system to deliver consumer satisfaction can be placed on the policies of the former communist government. In particular, the low status given to retailing, together with the centralised process for distribution, prevented com- petition and innovation in all agro-food sectors. Declining investment in agriculture and food pro- cessing has also taken its toll on the system. To some extent, however, the inefficiencies are the result of poor domestic infrastructure, i.e., low automobile ownership, household and retail food storage capa- bilities and low disposable incomes.

The influx of Western producers, distributors and retailers has effected some change in several Eastern European countries and the private sector in all coun- tries has responded to increased competition by offering a greater variety of higher quality foods. Despite the progress made over the last few years, Bulgarians still perceive their food distribution system significantly less positively than do food shoppers in the West and other East Central European countries. By examining consumer responses, policy- makers have a clear line of action. Of all the distri- bution factors, availability of fruits and vegetables

and retailing are viewed the most positively. Policy- makers should, therefore, focus resources on the three other areas: food processing, quality and cost.

First, priority should be given to improving the food processing sector. This includes enhancing the types of dairy products on offer and improving the availability and range of prepared and frozen foods. Second, consumers were also unhappy with all aspects of food packaging. Efforts should be directed towards improving the appearance and pro- tective value of labels and packaging. In many instances improving the efficiency and effectiveness of food processing will improve the quality of par- ticular food items which consumers emphasised as being poor. Bulgarians perceive most foods to be of poor quality, especially dairy items and fruits and vegetables. Resources devoted to improving these areas of food quality should therefore improve customer satisfaction.

Third, food costs, which may be as high as 60-70 percent of total income, are, not surprisingly, per- ceived to be too high. The cost of meat, imports, and advertised foods top consumers' lists as being the worst, although the overall consensus is that food in general is very expensive. A long term government policy objective is, obviously, to increase the income and wealth of Bulgarian consumers. However, even in the relatively richer Western countries, food costs are perceived to be too high. To make short term gains in improving the perceptions of high-cost foods, price increases of staples could be indexed to lag cost of living increases. Marketing efforts designed to make consumers aware of this could then be implemented at the retail level, increasing per- ceptions of value for money.

These findings reinforce the need for government and industry action on the perceived deficiencies in the food distribution system. Investment in pro- cessing, packaging, transport and storage equipment and technology should be coupled with media cam- paigns to inform and educate the new breed of con- sumers. These investments must also be coupled with training programmes for agro-food employees, as there is a dire need for quality assurance measures to be implemented at all levels of the food distribu- tion value chain. Finally, the Bulgarian government should take note that Bulgarian consumers prefer to use privatised stores over state and co-operative outlets, and either take steps to further reduce the state's role in food distribution, or to increase the attractiveness of state and cooperative retail outlets.

Acknowledgement

The authors wish to acknowledge that this work was undertaken in the Marketing Department of De Montfort University, Leicester LE1 9BH, U.K. The work was also funded from this source.

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Appendix 1. Questionnaire d e t a i l s w i t h mean responses for Bulgaria (A), Eastern Europe (B) and Western Europe (C)

Factors and abbreviated statements Mean response

A B C

Factor 1 processing There are many types of milk available Quality of dairy products is good There many types of dairy products available There are many sizes of dairy products available There are many types of forzen foods available There are many types of packaging containers Food packaging is attractive There are many types of poultry products available There are many types of prepared foods available There are many types of meat available Packaging is protective

5.38 4.36 2.37 5.56 4.42 3.21 5.45 3.87 2.63 5.50 4.36 2.88 5.32 4.20 2.43 3.27 4.53 2.59 5.14 4.10 2.71 4.95 4.17 3.16 5.85 5.14 3.29 4.28 4.11 3.16 5.40 4.88 3.27

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Factors and abbreviated statements Mean response

A B C

Factor 2 quality Quality of prepared foods is good Staff are helpful Quality of fruits and vegetables is good Quality of advertised foods is good Fruits and vegetables are clean Quality of poultry is good Shop atmosphere is nice Quality of meat is good Quality of frozen foods is good Layout of shop is good Quality of canned foods is good

Factor 3 cost Food is inexpensive Prepared foods are inexpensive Canned foods are inexpensive Meat is inexpensive Advertised foods are inexpensive Poultry is inexpensive

Factor 4 availability of fruit and vegetables (f/v) Out-of-season f/v are always available There are many types of f/v available There is a wide variety of imported f/v Fresh f/v are always available Wide assortment of fresh f/v is always available

Factor 5 retailing Staff are friendly Shops are clean Food markets are clean Distance to shop is not too far Shopping does not take too much time

4.62 4.47 3.68 4.64 4.87 3.87 5.11 4.83 3.78 4.76 4.40 3.54 4.64 4.93 3.55 4.97 4.36 3.21 4.61 4.52 3.57 4.22 3.82 3.07 4.50 3.97 3,19 4.22 3.80 3.33 4.81 4.59 3.33

5.45 5.38 4°80 5.47 5.39 5.01 5.48 5.40 4.06 6.08 5.93 4°96 6.05 5.60 4.57 5.71 5.11 3.93

3.46 3.81 4.06 3.86 3.52 2.75 3.63 3.63 3.50 4.04 4.10 2~90 3.86 3.96 3o 12

4.64 3.83 2o61 3.38 3.34 2.29 3.86 4.22 2.90 2.69 3.16 2.84 3.92 4.25 3°78

Notes: All responses are significant at the 0.05 level; responses have been recoded to read favourably. Key: 1 very strongly agree; 2 strongly agree; 3 agree; 4 neither agree nor disagree; 5 disagree; 6 strongly disagree; 7 very strongly disagree.

Appendix 2: Notes on the questionnaire technique

Interviews conducted in the region ensured functional equivalence, i.e., there is no particular social function (as found in developing nations) attributed to food shopping. In fact, the high degree of dual-income workers has meant that, like in the West, shoppers would prefer to spend less time shopping for food (Mueller and Broderick 1995). Conceptual equiv- alence of the measures used on the questionnaire were established by in-depth discussion and back-translation of scale items used. Although there is no accepted means of validating psychometric equivalence where different samples are used (Nunnally 1978), exploratory factor analysis of the results showed the structure of the factors to be remarkably similar (Mueller 1994).

Cronbach's alfa was used to measure the reliability of the scales. In the first four scales, the alfas lie in the 70s and 80s, indicating that they are adequate (equally good alfas were obtained for the East European and West responses). The retailing factor has a lower alfa, possibly due to non-shop variables loading onto this factor. Subsequent analyses failed to improve the reliability of this scale. It is acknowledged that further work on developing more appropriate retail scale items is needed to increase confidence in the retial factor. Nevertheless the scale does assist in offering greater insight into food distribution perceptions and is a beginning at understanding consumers' perceptions of food distribution. Importantly, the findings are consistent with qualitative analyses of others and have been validated by depth-interviews in Bulgaria.