Bachelor thesis marketing 2009-2010

Supermarketing:

Online supermarkets

Words:

8262

Name of the supervisor:

Drs. Mark Vroegrijk

Kristy van den Schoor

781278

1

Table of Contents

Abstract………………….………………………………………………..………………2

Chapter 1: Introduction…………………………………………………………………3

§ 1.1 Problem background…………………………………………………………..…….3

§ 1.2 Problem statement. ……………………………………………….…………………4

§ 1.3 Research questions……………………………………………….………………….4

§ 1.4 Conceptual framework………………………………………………………………4

§ 1.5 Definitions……………………………………………………………………...……5

§ 1.6 Relevance……………………………………………………………………………5

§ 1.6.1 Academic Relevance………………………………………………………5

§ 1.6.2 Managerial relevance………………………………………………...……6

§ 1.7 Structure……………………………………………………………………………..7

Chapter 2: Research question 1………………………………………………………... 8

§ 2.1 Assortment and brands………………………………………………………………9

§ 2.2 Convenience…………………………………………………………..……………10

§ 2.3 Price and price promotions…………………………………………………...……12

§ 2.4 Store environment and atmosphere………………………………...………………13

§ 2.5 Customer service quality…………………………………………...………………14

§ 2.6 Conclusion.………………………………………………………………...………15

Chapter 3: Research question 2………………………………………………………. 16

§ 3.1 E-S-QUAL model………………….....……………………………………………17

§ 3.2 TAM model…………………………...……………………………………………20

§ 3.3 Perceived risk………………………………………………………………………22

§ 3.4 Price…………………………………..……………………………………………23

§ 3.5 Conclusion…………………………………………………………………………24

Chapter 4: Research question 3………………………………………………………. 25

§ 4.1 Assortment and brands………………………..……………………………………26

§ 4.2 Convenience………………………………………………………………………..27

§ 4.3 Price and price promotions………...………………………………………………28

§ 4.4 Store environment and atmosphere………………………….……………………..29

§ 4.5 Customer service quality……………………………………………...……………30

Chapter 5: Discussion…………………………………………..………………………31

§ 5.1 Conclusion and problem statement…………………………………...……………31

§ 5.2 Recommendations……………………………………………….…………………32

§ 5.3 Limitation and future research……………………………………..………………32

Reference list……………………………………………………………………………34

2

Abstract

Not much research is done about online supermarkets. Since the choice factors for a

traditional supermarket and/or online shop are not the same as the choice factors for an

online supermarket, research about this is needed. This paper investigates what aspects

should be central in an online supermarket‟s positioning to influence the choice of a

customer.

First, the most relevant store choice attributes of a traditional supermarket are

considered. Convenience, customer service quality, store environment and atmosphere,

assortment and brands and price and price promotions are the most important attributes.

Second, some models that explain the online purchasing process are mentioned;

the TAM model and the E-S-QUAL model.

After this, the effect of the moderator on these store choice factor is discussed.

The results show that convenience is the most important store choice attribute in offline

and online supermarkets. The customer service quality becomes more important in an

online supermarket, especially the privacy of the customer. The website is the

environment of an online supermarket. The importance of brands decreases while the

relation of size and assortment stays the same. The target group of customers who shop

online, because of time pressure, is less price sensitive. All these store attributes

influence the choice of a customer for an online supermarket.

3

Chapter 1: Introduction

§ 1.1 Problem background

Nowadays we live in a world where the technology is rapidly growing. Complex systems

as internet have an enormous impact on our daily life. Almost all people have access to

the internet and make use of it for numerous things such as paying bills, phone someone

or shopping. Most people buy a lot on the internet, such as books, clothes and multimedia

(Monsuwé et al, 2004). However, groceries are not very popular in comparison with other

products; the online shopping rate for groceries is below the average online shopping rate

(Huang & Oppewal, 2006). This is very remarkable because “a study by the University of

Michigan found that among 22 favorite household tasks, (physical) grocery shopping

came in next-to-last, just ahead of cleaning” (Richards, 1996). In addition to this,

according to Geuens et al. (2003) consumers have six positive associations with

traditional grocery shopping like meeting other people and animations while they have

fifteen negative associations such as waiting lines, no parking space and old people.

When consumers buy their grocery sales online, many of these negative associations

could be avoided. Combining these two papers one would expect that online grocery

shopping would be very successful and many people make use of it. However, several

studies determine that online consumer expenditure on grocery sales is only a couple of

percent of its total group sales (Huang & Oppewal, 2006). There are not many online

supermarkets but “even for Tesco, the most successful online grocery retailer, the internet

division represents only less than 2 per cent of its total group sales” (Rigby, 2005).

Because of the negative associations with grocery shopping it is strange that only a few

people buy their groceries online. Since people buy so many things on the internet, the

online supermarkets are running behind while it could be a gap in the market. Because of

the little use of online supermarkets there is also little experience in setting up an online

supermarket and know how to do this successfully. There are almost no studies that

examine the most important aspects in positioning an online supermarket or question why

online supermarkets are not (yet) successful. Therefore it is needed to examine how a

company can set up a successful online supermarket and what are the things it has to pay

attention to.

4

§ 1.2 Problem statement

What aspects should be central in an online supermarket‟s positioning to

influence the choice of a customer?

§ 1.3 Research questions

Which store attributes determine the choice of the customer for a traditional

supermarket?

How do customers‟ online purchasing processes takes place compared to

customers‟ offline purchasing process?

Which store attributes determine the choice of the customer for an online

supermarket?

§ 1.4 Conceptual framework

§ 1.5 Definitions

The factors influencing the choice for a supermarket are based on the study of

Parasuraman et al. (1988).

Online purchase process: is defined as the use of online stores by consumers up until the

transactional stage of purchasing and logistics (Monsuwé et al, 2004).

Store attributes: can be defined as the “summation of all attributes of a store as perceived

by the shoppers through their experience of that store” (Omar, 1999).

Choice for a supermarket: in this paper it is the choice for a grocery store to buy the

groceries in this supermarket.

Assortment: “the number of different items in a merchandise category” (Levy & Weitz

1995).

5

Brands: A brand can be defined as “a name, term, sign, symbol, or design, or

combination of them which is intended to identify the goods and services of one seller or

group of sellers and to differentiate them from those of competitors” (Kotler, 1991).

Convenience: anything that tries to save resources (time, costs and energy) and/or affect

time and effort perceptions (Pan & Zinkhan, 2006).

Price: „price is what is given up or sacrificed to obtain a product (Zeithaml, 1988).

Price promotions: reducing prices and in this way customers receive a discount (Bell &

Lattin, 1998).

Store environment and atmosphere: deals with the physical store attributes (Pan &

Zinkhan, 2006).

Customer service quality: the quality of customer interactions (Parasuraman, 1988).

§ 1.6 Relevance

§ 1.6.1 Academic Relevance

The last ten years several studies were done about supermarkets. Many papers describe

what factors are influencing the choice for a particular supermarket (Saridakis, 2009;

Baltas & Papastathopoulou, 2003). These papers focus on a traditional supermarket.

There are also studies about the factors that determine the choice for an online shop,

because the choice for an online shop is influenced by different factors than for an offline

shop (Degeratu et al., 2000) Through the internet customers have to use a new

technology which encompasses interactions between humans and technology (Kim et al,

2006). The choice factors for an online shop are not the same as the choice factors for an

online supermarket, because it differs in two ways. “First grocery shopping is a frequent

and repetitive activity and second competition for groceries tend to be local, while that

for nongroceries such as books is global” (Chu et al., 2008). So the combination from

this two research fields is unique and not yet enough examined.

To set up an online supermarket there are many aspects that companies have to

take into account. Less research is done about the choice factors for an online

supermarket while this is needed to set up a successful online supermarket. There is need

for a paper that includes the most important aspects and factors influencing the choice for

an online supermarket. By considering the choice factors for a supermarket, influenced

6

by the moderator, differences in online and online shopping processes, the aspects which

should be central in an online supermarket‟s positioning to increase its online sales

should be explained.

§ 1.6.2 Managerial relevance

Managers and entrepreneurs can use the results of this research very well. Nowadays,

online shops are exponentially growing and more and more people buy on the internet,

however there are only a few online supermarkets. Since there are so little online

supermarkets, it can be very profitable to set up an online supermarket. Online

supermarkets can be a gap in the market by which companies can gain several first mover

advantages. There are some significant differences between offline and online shopping

processes which are very important for managers to fully understand (Degeratu et al.,

2000). The consumer preferences are important, because the preferences for online

supermarkets are probably different from an offline supermarket. This complete research

can be very helpful in setting up an online supermarket since it includes all the aspects

that need extra attention.

Also the few online supermarkets that already exist can use this research very

well. The company can take a close look at their own online supermarket and see if their

supermarket includes all the important aspects needed to be successful.

§ 1.7 Structure

In the second chapter the factors determining the choice for a particular supermarket will

be explained. Factors like price, convenience and assortment are influencing the choice of

the customer. In the third chapter the effect of the moderator is considered; the

differences between the online and offline consumers‟ purchasing process. In the fourth

chapter the factors of chapter two will be modified into specific factors influencing the

choice for an online supermarket. Factors like price sensitivity and brand names have a

different influence on online supermarkets compared to offline supermarkets. At the end

of each relevant topic there will follow a hypothesis. In chapter five there will follow an

answer to the research questions, the conclusions and recommendations.

7

8

Chapter 2: Research question 1

“Supermarket competition has increased tremendously during recent years and the need

for a deeper understanding of the key criteria for consumers‟ store patronage has never

been greater (Saridakis, 2009)”. The main goal of this research question is to understand

the store attributes that determine the choice for a particular supermarket. Store attributes

can be defined as the “summation of all attributes of a store as perceived by the shoppers

through their experience of that store” (Omar, 1999). Therefore the following research

question is answered:

Which store attributes determine the choice of the consumer for a traditional

supermarket?

The store attributes influencing the choice for a supermarket are based on the study of

Parasuraman et al. (1988). The most relevant store attributes for this study are;

assortment and brands; convenience; price and price promotions; store environment and

atmosphere and customer service quality. These will be discussed in this chapter and the

effect of them on the choice for a supermarket will be considered.

9

§ 2.1 Assortment and brands

Size

Although there are some researches that did not find a positive relationship between

assortment size and sales (Dreze et al., 1994), there is no strong evidence because smaller

assortments are associated with substantially lower revenues (Fox et al, 2005). In addition

to this there are several studies that have found an important positive relationship (Arnold

et al, 1983; Huff, 1964). Fox et al. (2005) found in their research that the store attribute,

assortment, has the greatest effect on the retail patronage and the spending at a retail

store. When customers spend at a retail store they have made a choice for that particular

store and therefore assortment size also positively affects the probability that shoppers

will choose for a particular supermarket. Also according to Pan & Zinkhan (2006) a

greater variety and larger assortment help a retailer attract more customers. They also

found that supermarkets with a great variety in product categories make it easier for

consumers to combine their visits, because now one supermarket offers everything and

they do not have visit more than one store. This can be a reason that influences the

customer to choose for a supermarket with a larger assortment and great variety.

H1: There is a positive relation between the assortment size and the choice for a

supermarket.

Brands

According to Degeratu et al. (2000) brands are important because when there is not much

information available about the products in a supermarket, the brand name becomes a

surrogate for the non-price information. Many customers find it difficult to compare

many unknown brands in a supermarket, because there is not much information available

to compare. When the available information decreases, the importance of the brand

names increases, because many customers think that well-known brands have automatic a

high quality (Mazarsky & Jacoby; 1985). So it is important for a supermarket to offer

well-known brands.

H2: The number of brands positively affects the choice of a customer for a supermarket.

10

§ 2.2 Convenience

The convenience is a very important determinant for supermarket choice and is examined

by many researchers who think it is one of the most important determinants. As

mentioned before, the research of Briesch et al. (2009) tested four attributes and found

that convenience has a greater effect on store choice decision than the other attributes.

Travel distance and location

Saridakis (2009) examined the relative impact of various supermarket attributes on the

choice for a supermarket by applying a large-scale hybrid conjoint experiment. He found

that the distance to a supermarket is by far the most important attribute for store choice.

He compared only three possibilities; a 5-minute, 15-minute and 25-minute distance to

the supermarket. “A 5-minute distance from the supermarket is most preferable and a 15-

minute distance may be acceptable, but a 25-minute distance from the supermarket is not

only the least preferable but it may also have a negative impact on the overall consumer‟s

utility” (Saridakis, 2009). There is also evidence that there is a difference in the travel

time that customers are willing to travel between different supermarket formats (Baumol

& Ide, 1956; Brown, 1978). They examined that consumers are willing to travel further to

stores that offer more products in their assortment.

Several researches highlight the importance of location as a basic explanatory variable of

store choice (Kim & Jin, 2001; Stanley & Sewall, 1976). Bell, Ho and Tang (1998) even

claim that “location explains up to 70% of the store choice variations”. In the research of

Saridakis (2009), as mentioned above, the second most important attribute is the parking

facilities a location offers. He also examined the importance of location in terms of

neighborhood image and found that consumers are negative towards supermarkets that

are located in poor neighborhoods, because these are associated with high levels of

criminality.

H3: The location with parking facilities, a short travel time (15-minutes or less) and a

good neighborhood image positively influence the choice for a supermarket.

11

“Several researchers have found a negative relationship between a long waiting time and

customer satisfaction” (Chebat & Filiatrault, 1993; Katz et al., 1991). Customers become

dissatisfied when the wait is longer than expected and often this depends on the reasons

for this longer wait. When customers are dissatisfied about the waiting line this can make

them decide to choose for another supermarket so it influences the choice for a

supermarket (Gail & Scott, 1995).

H4: A long waiting time (or longer than expected) has a negative influence on the choice

for a supermarket.

12

§ 2.3 Price and promotions

Price

Price is an important determinant for the choice of a supermarket. It is difficult to explain

in short because the price sensitivity of a consumer depends on several things, such as

different store formats, different product categories and several demographics (income

and household size) (Bell & Lattin, 1998).

Several researches mentioned that customers of supermarkets are price sensitive and

notice changes in prices (Guadagni & Little, 1983; Zbytniewski, 1979). Others say that

customers do not have much price knowledge and Dickson and Sawyers (1990) say that

only 47,1% of the customers remember the price of the product after the purchase

(Zeithaml, 1988). This can be explained by the distinction that customers make between

the objective price (actual price) and the perceived price (encoded by the customer).

Customers do not always remember the actual price of a product but they encode prices

in ways that are meaningful to them (Jacoby & Olson, 1977).

For many consumers is the price a signal for the quality of the product. Especially new

customers have the intention to believe that a high price stands for high quality.

Supermarkets have to take care that their prices are not too low, because then customers

think that the products of that supermarket have a low quality and this can be a reason for

not choosing that supermarket (Solomon, 2009).

H5: The encoded price by a customer and the quality signal of a price have an effect on

the choice for a supermarket.

Price promotions

Several studies examined the effect of price promotion and find out that the effect on

store choice is weak. Walters and Rinne (1986) find out that cutting prices in most cases

did not lead to significantly increased traffic and also Walters shows that advertised

promotions have no impact. In addition to this, Volle (2001) studied this effect and

concluded that “the effect of store-level promotions on store choice probabilities is (at

best) weak, compared to the inertia of household store choices”.

H6 = The effect of price promotion on the customers’ choice for a supermarket is weak.

13

§ 2.4 Store environment and atmosphere

“The store itself can offer a unique atmosphere, or environment, that may influence the

consumer's patronage decision” (Kotler, 1973). The store environment has an influence

on the image of a store, which influences the choice for a particular shop (Baker et al.,

1994).

“Characteristics of a store's environment influence the inferences that customers make

about the store's merchandise and service quality” (Baker et al., 1994). Ambient and

social characteristics, for example more sales personnel on the floor and greeting

customers, can easily be modified in a store and has a positive influence on the image of

a store. The impact of design factors on the image is weak and this means that managers

can influence their store image by just modifying some ambient and social characteristics

and do not have to make big changes in design (Baker et al., 1994). In addition to this, in

the study of Donovan et al. (1994) they found that the emotional state of consumers

within the store has a big influence on the actual purchase behavior. This emotional state

can be influenced by the store environment. Pleasure and arousal encouraged by store

environment has a strong influence on the shopping behavior of the consumer.

Molina et al. (2009) explained that “the store‟s atmospherics deal with the physical store

attributes and can be enhanced through visual communications (signs and graphics),

lighting, colors, and even scents. Music is also very important, because it is very cheap

but can have a significant influence. Atmospherics are also having a function of making

customers less aware of their wait. He also stated that “experienced pleasantness of the

in-store environment was a significant predictor of willingness to spend time in the store

and eventually come more frequently to the supermarket which increases the customer

base”.

H7= A pleasant store environment and atmosphere has a positive effect on supermarket

choice.

14

§ 2.5 Customer service quality

Several studies examined that customer service is a key factor towards generating loyal

retail customers, and this leads to successful retail stores (Morey, 1980; Parasuraman et

al., 1988).

According to Molina et al. (2009) every supermarket needs to examine what customer

service is relevant for their store in order to increase their sales. There are different

format of supermarkets and therefore there will be differences in expectations about the

customer service, for example consumers do not expect great customer service shopping

at the Lidl. Supermarkets should communicate in a clear way to the consumers the

services that they are offering so that the consumers know what to expect. Also Carmen

(1990) found that retailers must use effective ways to offer services that meet or exceed

the expectations of their customers. He even mentioned that customer service satisfaction

can be increased by lowering the expectations of the customers.

Paulins (2005) indicates that “retailers must be aware that a responsive service is

particularly important to customers and can be a differentiating factor with competitors”.

The salesclerks must adopt this behavior and should for example offer prompt service,

help and give a customer their full attention. Other behaviors of the salesclerks that

enhance customers‟ perception of service quality is assurance and empathy, such as

offering courteous and individual attention and demonstrating that you have the

customers‟ best interests. Molina et al. (2009) also state that companies must offer their

customers reward programs such as loyalty programs. In this way they also build a long-

term relationship with their customers.

H8 = Good customer service (in terms of responsiveness, assurance, empathy and reward

programs) positively influences the choice for a supermarket.

15

§ 2.6 Conclusion

There is a positive relation between the assortment size of a supermarket and the

choice customers make. Also the number of brands has a positive effect on this.

The location and distance of a supermarket are very important. Parking facilities,

a short travel time and a good neighborhood image influence the choice of a

customer for a supermarket. A long waiting time (or longer than expected) has a

negative influence on the choice for a supermarket.

The encoded price by a customer and the quality signal of a price have an effect

on the choice for a supermarket while the effect of price promotions on the

customers‟ choice is weak.

A pleasant store environment and atmosphere has a positive effect on supermarket

choice. It can be enhanced by social and ambient characteristics and visual

communications.

A good customer service pays attention to responsiveness, assurance, empathy

and reward programs. These all have a positive influence on the choice for a

supermarket.

16

Chapter 3: Research question 2

The online shopping behavior really differs from the shopping behavior in a traditional

store (Peterson et al., 1997). Since there is no physical store in online shops everything

revolves around the quality of the service that is delivered through the internet. Because

of this difference companies must understand how consumers perceive and evaluate the

services of online shops. Therefore the following research question will be answered:

How do customers‟ online purchasing processes takes place compared to

customers‟ offline purchasing process?

First the E-S-QUAL model will be discussed. The E-S-QUAL model is derived from the

SERVQUAL model which measures the quality of non-internet based customer

interactions and determines the strengths and weaknesses in the service quality of a

company. The E-S-QUAL model is made to measure the online service quality and is

therefore appropriate to answer this research question. Then, a modified TAM model will

be explained to predict the acceptance of new technology by using two variables that

have a great impact on the technology acceptance behavior. Since customers who want to

buy their groceries online make use of a new technology, this study is also appropriate. In

the last part the increased influence of perceived risk on online shopping will be

considered.

Because the previous models do not take into account the difference in price sensitivity

between online and traditional supermarkets, this will be explained in the last part.

17

§ 3.1 E-S-QUAL model

The SERVQUAL model was developed by Parasuraman et al. (1988) to measure the

quality of non-internet based customer interactions and determine the strengths and

weaknesses in the service quality of a company. In 2005 the authors mentioned that “the

way people perceive service quality in web-based settings differs from the service quality

in non-web-based settings because the acceptance and usage of technologies differ

among customers with different beliefs about technology” (Parasuraman, 2005). Because

they mentioned this difference between online and traditional shopping, they developed

the E-S-QUAL model which measures the online service quality. This model is relevant

in this paper because it will give more understanding in the differences between the

online service quality and the offline service quality. According to Zeithaml et al. (2000),

online service quality is “the extent to which a web site facilitates efficient and effective

shopping, purchasing, and delivery”. Also Yang (2001) mentioned the importance of

service quality because it is an important factor in determining the success of an online

shop. The delivery of good superior service has a positive effect on customers‟ perceived

service quality and subsequently increases a firm‟s sales and thus its profitability (Leung

& Fung, 1996). When the firm has an increase in sales its customer base will become

larger. Because the model contains all phases of a customer‟s interaction with the web; it

captures all online service attributes available in retail websites (Kim et al., 2006).

The E-S-QUAL model of Parasuraman et al. (2005) includes four dimensions:

1. Efficiency

According to Parasuraman et al. (2005), efficiency is defined as “the ease and speed of

accessing and using the site”. Evidence from other studies support the importance of

efficiency in online retailing. According to Ranganathan and Ganapathy (2002)

convenience and the saving of time are the most important reasons to shop online.

Efficiency is different in a traditional store and does not have many similarities, but

efficiency is very important in both traditional and online stores.

18

2. Fulfillment

According to Parasuraman et al. (2005) fulfillment is defined as “the extent to which the

site‟s promises about order delivery and item availability are fulfilled”. Zeithaml et al.

(2002) explains that having products in stock, delivering the products on time and fulfill

the service promises that are made, are important within this dimension. Also

Wolfinbarger and Gilly (2003) and Yand and Frang (2004) explained that fulfillment is

one of the most crucial factors related to the customer satisfaction about a website. The

fulfillment of an online shop can be compared with the fulfillment of a traditional store

whereas it seems to be more important in an online shop because there it is not visible.

3. System availability

According to Parasuraman et al. (2005) system availability is defined as “correct

technical functioning of the site”. Fram and Grady (1995) mentioned in their study that

technical software issues are problems related to purchasing on the internet that must be

avoided. Many of these problems such as missing links and non-working buttons lead to

frustration and in this way the online retailer misses the opportunity to build customer

loyalty (Wachter, 2002). This dimension is not present in a traditional shop.

4. Privacy

According to Parasuraman et al. (2005) privacy is defined as “the degree to which the site

is safe and protects customer information. According to Sharma and Sheth (2004) privacy

is a critical issue in online retailing, because of perceptions of risk related to the misuse

of personal information. Also Ranganathan and Ganapathy (2002) found that “privacy

and security have significant impact on purchase intent”. Privacy is also an issue in a

traditional store (for example loyalty cards) but in an online shop it becomes more

important because of the uncertain situations and higher degree of perceived risk.

19

The E-S-QUAL model also has an e-recovery service quality scale as a subscale for

problem resolution, it includes the following three dimensions:

1. Responsiveness

According to Parasuraman et al. (2005) responsiveness is defined as “effective handling

of problems and returns through the site”. It is important that online shops offer

appropriate problem solving information to customers, online guarantees, return and

exchange policies (Kim et al., 2006).

2. Compensation

According to Parasuraman et al. (2005) compensation is defined as “the degree to which

the site compensates customers for problems”. Online shops should consider the

refunding of shipping and handling costs when a problem occurs (Kim et al., 2006).

3. Contact

According to Parasuraman et al. (2005) contact is defined as “the availability of

assistance through telephone or online representatives. The process of contacting a

customer service agent when the customer has a problem is very important. The e-

recovery service can be compared with the customer service which is in both cases an

important dimension, but probably more important in an online shop.

It is clear that the E-S-QUAL model differs from the SERVQUAL model, because in an

online shop other dimensions are important compared to a traditional shop.

20

§ 3.2 TAM model

Since the growing popularity of the internet, companies rushed to set up the Web sites

and become an online retailer, but many of them failed to utilize the Web site effectively

(Dutta et al., 1998). It is important that online retailers understand the factors that affect

customer‟s perception and acceptance and possibly enhance the quality of the website.

Customers who want to buy online have to use a new technology. In the study of Lin and

Lu (2000) they examined the TAM model in the internet environment by adding

information system (IS) quality as external variables. TAM is a model to predict the

acceptance of new technology by using two variables, perceived usefulness and perceived

ease of use that have a great impact on the technology acceptance behavior. The modified

TAM model of Lin and Lu (2002) addresses “why users accept or reject a Web site and

how user‟s acceptance is affected by the features (i.e. information quality of the Web site,

response time and system accessibility) provided by a website”.

IS Quality

“The quality of information provided by a web site, is a very important factor in leading

people to believe in the usefulness of that web site” (Lin & Lu, 2000). According to Lin

and Lu (2000) information quality, response time and system accessibility are chosen in

this study as the variables to express the IS quality. These three variables have been

considered as important by several studies and considered important in affecting user‟s

21

beliefs of a website and its acceptance (Bailey & Pearson, 1983; Delone & Mc Lean

1992; Seddon, 1997).

Information quality

“The quality of information, provided by a Web site is a very important factor in leading

people to believe in de usefulness of that Website” (Lin & Lu, 2000). A higher quality of

information will lead to a higher chance of website acceptance.

Response time

“The response time of a web site refers to the time that user spends on waiting to interact

with a site” (Lin & Lu, 2000). The ordering time and delivery time are important in this

dimension. The researchers found that the response time affects the user‟s beliefs and

influence the website acceptance.

System accessibility

“System accessibility refers to the availability of related system (such as PC, modem, and

online services) for accessing the web site” (Lin & Lu, 2000). A good system

accessibility will lead affect the user‟s belief and acceptance of a website.

Beliefs, Attitude and Intention

According to Davis et al. (1989) perceived usefulness means “the prospective user‟s

subjective probability that using a specific application system will increase his or her

performance,” and perceived ease of use is “the degree to which the prospective user

expects the target system to be free of effort”. Both perceived usefulness and perceived

ease of use have a strong influence on the preference for a website and this leads to the

intention to reuse the website and the acceptance of the website (Lin & Lu, 2000).

22

§ 3.3 Perceived risk

“Perceived risk, a fundamental concept in consumer behavior, implies that consumers

experience pre-purchase uncertainty as to the type and degree of expected loss resulting

from the purchase and use of a product” (Cox, 1967). According to Tan & Thoen (2000-

2001) it is clear that the e-commerce environment is more risky. Online shopping is more

uncertain, because one is not able to see and touch the products and has to deal with

issues like privacy and security. Chen & He (2003) explained that in an e-commerce

environment there is a higher degree of perceived risk, and such as the influence of some

store attributes, on the choice for a store, in an online environment change (Chen & He,

2003).

Information

“In the context of online retailing, risk theory implies that having more information

available to consumers reduces perceived risk associated with buying” (Chen & He,

2003). Also other studies mention that consumers develop ways to reduce risk and one of

them is by searching for information that gives more certainty about a product (Bauer,

1960; Murray, 1991). The information can be divided into internal information and

external information. How bigger the degree of perceived risk, the more the consumer

will search for external information from the environment to decrease this risk (Chen &

He, 2003). Because of this online retailers should offer more information on their website

such as the provision of maps, FAQs, contact information to reduce the perceived risk.

Brand knowledge

In an online retailing sector, brands are assumed to be more important than in a

traditional shopping environment, because they reduce the risk. When the company

informs the consumers by advertising or other forms of communication, their brand

knowledge becomes larger and this can reduce the perceived risk. “Through brand

knowledge, online retailers can better catch and serve prospective consumers” (Chen &

He, 2003).

23

§ 3.4 Price

Chu et al. (2008) used an extensive data set to estimate the price sensitivity of households

in online and offline shopping channels. They observed several households that shop

offline and online in the same grocery chain and they find that across twelve vastly

different product categories, that the price sensitivity was lower when they shop online

compared to offline. They also found that the price sensitivity is closely related to

demographics and the distance from the offline store. Degeratu (2000) also mentioned

that the price sensitivity goes down in an online supermarket. According to him this is

because when there is more non-price information available in an online supermarket

about non-sensory attributes, the price importance goes down as a result of this.

Degeratu (2000) found that there were no significant differences in the effects of price

promotions between online and offline supermarkets. Also Chu et al. (2008) found that

“price reduction across channels does not result in a bigger online response in purchase

quantity than in the offline channel”.

Delivery charge is an issue what not appears in traditional supermarkets but it does in

online supermarkets. Clarke (2000) said in his study that one of the reasons for the low

uptake of online supermarkets is the delivering fee but many researchers have shown that

it has no big influence. Bell et al. (1998) mentioned that both types of supermarkets have

fixed costs; namely the travel costs to a traditional supermarket with the delivery fee of

an online supermarket but customers like to forego the expense such as petrol or parking

charges. So in fact there is not a big difference between the travel costs and the delivering

fee. In the research of Huang & Oppewal (2006) they examined the importance of four

situational factors for online supermarkets. They found that customers fifteen minutes

difference in travel time to the grocery store had a greater impact on the relative

preference to shop online than a delivery fee of £5. So the delivery fee is not a big issue

according to this study.

24

§ 3.5 Conclusion

There is a significant overlap between the two models discussed in this chapter. Table 1

shows important factors for online shopping and summarizes the two models and

integrates them.

Factors

E-S-QUAL

model

TAM model Perceived

risk

Price

Efficiency

Efficiency Response time

Fulfillment

Fulfillment Brands

System

System

availability

System

accessibility

Service

Responsiveness

Compensation

Contact

Privacy

Information

Information

quality

Information

Price Price Table 1

All the factors in the above model have an influence on the store attributes of chapter 2.

Assortment and brands: Fulfillment from the E-S-QUAL model and the perceived risk on

brands have an influence on this store attribute.

Convenience: Efficiency from the E-S-QUAL model and the responsive time from the

TAM model have an influence on this store attribute.

Price and promotions: The information about online prices has an influence on this store

attribute.

Store environment and atmosphere: System availability from the E-S-QUAL model;

system accessibility from the TAM model and the online perceived risk on information

have an influence on this store attribute.

Customer service quality: The e-recovery model and privacy from the E-S-QUAL model

have an influence on this store attribute.

25

Chapter 4: Research question 3

In this chapter the influence of the moderator on the different store attributes from

chapter two will be considered. So the findings of chapter three will be linked on the

store attributes of chapter two and in this way the influence of the moderator will be

considered and the importance of the store attributes of chapter 2 will be modified. This

will give an answer on the following research question:

Which store attributes determine the choice of the consumer for an online

supermarket?

26

§ 4.1 Assortment and brands

Size

In chapter 2.1 is explained that there is a positive relation between assortment size and

the choice for a supermarket. For online supermarkets it also seems to be that there is a

positive relationship between assortment size and the choice for a supermarket. When an

online supermarket offers a large assortment, customers can order from one website all

their groceries and this is the same for a traditional supermarket where customers can

visit one store instead of many. So the influence of assortment size on customer choice

stays the same.

Another aspect that becomes more important in an online supermarket is called

fulfillment as explained in chapter 3.1. It is for an online supermarket more important

compared to a traditional supermarket to have all the products in stock. An online

supermarket should offer information about item availability, because this is not visible

as in a traditional supermarket.

H9: In online supermarkets there is the same positive relation between the assortment

size and choice for an online supermarket as in a traditional supermarket.

Brands

In chapter 2.1 is explained that the number of brands positively affects the choice of a

customer for a supermarket. While one would expect the importance of brands going

down in an online supermarket, because of the more information that is available in most

situations, this is not completely true because of the perceived risk in an online

supermarket. In chapter 3 the influence of perceived risk on brands is discussed. As

mentioned before the internet environment is more risky, because there are privacy and

security risks and „people are afraid of their benefits being damaged by service provided

in a more uncertain environment‟ (Tan & Thoen, 2000-2001). So through the influence of

perceived risk on brands, brands become more important in an online environment.

H10: The presence of brands has a stronger influence on online than offline supermarket

choice.

27

§ 4.2 Convenience

In chapter 2.2 is explained that several researches mention convenience as the most

important store attribute for the choice of a customer. The travel distance and location are

not relevant in an online shop but there are some other convenience aspects in an online

shop that are very important as explained in chapter 3.1. Several researches consider this

also the most important store attribute of an online shop.

H11: Convenience is also the most important store attribute for the choice of an online

supermarket but focuses on other aspects.

As explained in chapter 3.1 convenience and the saving of time are considered the most

important reasons to shop online. The efficiency dimension of the E-S-QUAL model

emphasizes the importance of the ease and speed of accessing and using the website.

These can save time and support the convenience of the customer.

In addition to this, in chapter 3.2 is explained that the response time is also very

important in an online supermarket, because this influences the user‟s belief and

acceptance of the website. The delivery time (and delivery reliability) is a very important

aspect in an online supermarket. The time to place an order can be compared with the

waiting line of a traditional supermarket. The ordering time becomes a little bit more

important compared to waiting lines. The ordering time should also, as in a traditional

supermarket, be short and not longer as expected, because then customers become

dissatisfied.

H12: The ease and speed of using the website, the ordering time and response time are

very important for the choice for an online supermarket. .

28

§ 4.3 Price and price promotions

In chapter 2.3 is explained that the encoded price of a customer and the quality signal of a

price have an effect on the choice for a supermarket. In chapter 3.4 is explained that the

price sensitivity of customers who buy their groceries online is lower than for the

customers who shop in a traditional supermarket. There are several reasons why

consumers have lower price sensitivity when they shop online. Since the most important

reason to shop online is convenience and saving time, one reason could be that many

consumers who shop online experience a time pressure and therefore they will not

compare many prices. Another reason could be that the online shoppers use shopping lists

to reduce the shopping time through which they will not compare the prices any more.

H13: The target group of customers who shop online, because of time pressure, is less

price sensitive in an online supermarket compared to a traditional supermarket.

In chapter 2.3 is explained that several researchers found that the effect of price

promotions on store choice is weak. In chapter 3.4 is explained that there is no significant

differences in the effects of price promotions between online and offline supermarkets.

H14: The effect of price promotions on the customer choice is both for online and

traditional supermarkets weak.

In chapter 3.4 the effect of a delivery charge is explained. Several researchers found that

it has an effect on store choic,e but this is not a very strong effect, because many other

factors are more important than the delivery fee.

H15: The delivery charge has a weak influence on the choice of a customer for an online

supermarket.

29

§ 4.4 Store environment and atmosphere

In chapter 2.4 is explained that a pleasant store environment and atmosphere has a

positive effect on supermarket choice. Since there is no physical store environment and

all the purchases are ordered via the website, the website is the store environment of the

online supermarket.

The ambient and social characteristics of a traditional supermarket are not present in the

environment of an online supermarket. The design which is not very important in a

traditional supermarket becomes more important in the website of an online supermarket.

As mentioned in chapter 3 it is important that the environment is accessible and in an

online supermarket this means that the system must be available and accessible for

customers. The website of an online supermarket should function technically correct and

technical software problems should be avoided, because otherwise it leads to frustration

and exiting. This is very important because otherwise customers will not choose for the

online supermarket.

The visual communications that are important in a traditional supermarket are also very

important in an online supermarket, for example colors, music, signs and graphics on the

website. By modifying these visual communications customers can also experience

pleasantness by shopping online.

As mentioned in chapter 3 the quality of the information that is available on the website

is very important. Because customers can not feel and see the product and there are no

salespeople to answer questions they need a lot of product information to make a

purchase decision. Information on a website especially about price and quality, positively

influenced satisfaction with the online shopping experience and the choice for an online

supermarket (Lynch and Ariely, 2000).

H16: Online supermarkets should focus on the website instead of the physical

environment to positively influence supermarket choice.

30

§ 4.5 Customer service quality

Since there is no physical shop and almost everything is about the service in an online

supermarket, customer service quality is more important in an online supermarket. In

chapter 2.5 is explained that a good customer service positively influences the choice for

a supermarket. A good customer service in an offline supermarket must be

responsiveness, assurance, empathy and offer reward programs.

In chapter 3.1 is explained that the e-recovery service can be compared with the customer

service which is in both cases an important dimension, but more important in an online

shop. This is because in an offline supermarket customers can ask the salesclerks, while

in an online shop they have to contact via the internet.

The problem resolution of an online supermarket should pay attention to responsiveness,

compensation and contact. These aspects are comparative with the aspects of an offline

supermarket. A responsive service is as mentioned before, important in a traditional

supermarket but more important in an online supermarket. There is a difference in

contact, because the interactions in an offline supermarket take place between humans

while the interactions in an online supermarket take place between humans and

technology. Compensation is almost the same in an online supermarket; the only

difference is the refunding of shipping and handling costs when a problem occurs.

H17: Customer service has a stronger influence on online than on offline supermarket

choice.

An aspect which differs in an online supermarket is the privacy of the customer. In a

traditional store customers have a lot of privacy and the environment is save, while in an

online supermarket customers have to give a lot of personal information via the internet.

In chapter 3.1 is explained that privacy and security have an important impact on the

purchase intent, because of perceptions of risk related to the misuse of personal

information.

H18: The privacy of customers becomes more important in an online supermarket

compared to a traditional supermarket.

31

Chapter 5: Conclusion

5.1 Conclusion and problem statement

Answering the research question: What aspects should be central in an online

supermarket’s positioning to influence the choice of a customer?

The factor convenience is the most important store attribute for the choice of a traditional

supermarket and also for the choice of an online supermarket, while it covers very

different issues. There is no location or distance issue, but the ease and speed of using the

website are very important. Also a short ordering time and delivering time have a strong

influence on the choice of the customer for an online supermarket.

All though the customer service quality is not a very important for the choice of a

traditional supermarket, it is a very important factor for the choice of an online

supermarket. Since there is no physical store in an online supermarket the service

becomes very important. Online supermarkets must act responsiveness, be contactable

and offer good compensations which are comparable aspects to traditional supermarkets.

The privacy of the customer differs greatly in an online supermarket and becomes very

important for the choice of the customer.

Since there is no physical store environment as in a traditional supermarket and all the

purchases are ordered via the website, the website is the store environment of the online

supermarket. It is important that the system is available and accessible for customers to

avoid frustrations. Also the visual communications and the quality of the information on

the website are important. These all influence the choice of the customer.

There is the same positive relationship between the assortment size and the customer

choice in an online and offline supermarket. The importance of brands increases, because

the internet is a more uncertain environment and more risks are perceived by the

customers. This perceived risk can be made a little smaller by offering a lot of

information on the website.

The target group of customers who shop online, because of time pressure, is less price

sensitive in an online supermarket because their main goal is to save time. The effect of

price promotions on the customer choice is for both online and offline supermarkets

weak. The delivery charge has not a strong influence on the choice of a customer for an

online supermarket.

32

5.2 Recommendations

The convenience of an online supermarket is very important. By promoting, an

online supermarket should focus on the time savings gained and the quick service.

The website should be simple to use and offer browsing and order instructions.

Customers should be able to use their own online shopping lists. It should take no

more than 20 minutes to place an order and the groceries should be delivered

within 24 hours.

Online supermarkets should pay lots of attention to a good customer service

quality. They should have a good responsiveness problem resolution system.

Online supermarkets should fully compensate problems that occur. They must

provide privacy and security policies; satisfaction guarantee information; return

and exchange policy information available on the website. The online

supermarket must offer interactive help and contact information such as telephone

numbers and email addresses.

The website of an online supermarket must function technically correct, must be

well-organized, well-structured, an offer advanced search function, FAQs and at

least three browsing options. They should offer a lot of information about the

product attributes, but also about the service and the process.

Online supermarkets should offer well-known brands to reduce the perceived risk,

as well as a lot of information to reduce this risk. They should offer in-stock status

information and order status/tracking information on the website.

Online supermarkets can ask a delivery fee of £5.

5.3 Limitations and future research

This research has several limitations. It is an exclusively literature research and the

hypothesis are not tested by an analysis. There are several store attributes that determine

the choice of a customer for a supermarket, but since the limited time and space of this

research a choice have been made for five relevant and important attributes. Further

research on the effect of all attributes should be examined to get a complete view of the

choice for an online supermarket.

33

The different customer target groups and demographics, such as income level and gender

are not considered. These differences may have a big influence on the results, because for

example income level will have a big influence on the price sensitivity of the different

customers.

Future research should test the findings of chapter 4 with empirical data to draw

significant results. The topic „online supermarkets‟ needs more research since online

shops are rapidly growing while online supermarkets are growing slowly.

34

Reference list:

Arnold, S.J., Oum, T.H. & Tigert, D.J. (1983). Determinant attributes in retail patronage:

Seasonal, temporal, regional, and international comparisons. Journal of Marketing

Research, 2, 149–157.

Bailey, J., & Pearson, S. (1983). Development of a tool for measuring and analyzing

computer user satisfaction. Management Science, 29(5), 530-545.

Baker, J., Grewal, D., Parasuraman, A. (1994). The influence of store environment on

quality inferences and store image. Journal of the Academy of Marketing Science, 22(4),

328-339.

Baltas, G. & Papastathopoulou, P. (2003). Shopper characteristics, product and store

choice criteria: a survey in the Greek grocery sector. International Journal of Retail &

Distribution Management, 31(10), 298-507.

Bauer, R.A. (1960). Consumer behavior as risk-taking. In: Dynamic Marketing for a

Changing World (Chicago, American Marketing Association), 389–393.

Baumol, W.J., & Ide, E.A. (1956). Variety in retailing. Management Science, 3 (1), 93-

101.

Bell, D., Ho, T.H., & Tang, C. (1998). Determining where to shop: fixed and variable

costs of shopping. Journal of Marketing Research, 35(3), 352–369.

Bell, D.R. & Lattin, J.M. (1998). Shopping behavior and consumer preference for store

price format: Why large basket shoppers prefer EDLP. Marketing Science, 17(1), 66-88.

Bloemer, J. & de Ruyter, K. (1998). On the relationship between store image, store

satisfaction and store loyalty. European Journal of Marketing, 32, 499-513.

Borle, S., Boatwright, P., Kadane, J.B., Nunes, J.C., & Shmueli, G. (2005). Effect of

product assortment on changes in customer retention,. Marketing Science, 24(4), 616-

622.

35

Briesh, R.A., Chintagunta, P.K., & Fox, E.J. (2009). How does assortment affect grocery

store choice? Journal of Marketing Research, 44, 176-189.

Broniarczyk, S.M. & Hoyer, W.D. (2006). Retailing in the 21st century: Current and

future trends. Retrieved from http://www.springerlink.com/content/t00q04041274748h/.

Brown, D.J. (1978). An examination of consumer grocery store choice: considering the

attraction of size and the friction of travel time. Advances in Consumer Research, 5, 243-

246.

Chebat, J.C. & Filiatrault, P. (1993). The impact of waiting in line on consumers.

International Journal of Bank Marketing, 11(2), 35-40.

Chen, R. & He, F. (2003). Examination of brand knowledge, perceived risk and

consumers‟ intention to adopt an online retailer. Total Quality Management & Business

Excellence, 14(6), 677-693.

Clarke, K.R. (2000). Grocery shopping online vs on land – consumers prefer to walk the

aisles. Available at

www.pwcglobal.com/extweb/ncpressrelease.nsf/DocID/E5AB218CAE54206B852568D4

0052790E.

Cox, D.F. (1967). Risk-taking and Information Handling in Consumer Behavior (Boston,

Harvard University).

Davis, F.D., Bagozzi, R.P. & Warshaw, P.R. (1989). User acceptance of computer

technology: A comparison of two theoretical model. Management Science, 35(8), 982–

1003.

Degeratu, A.M., Rangaswamy, A. & Wu, J. (2000). Consumer choice behavior in online

and traditional supermarkets: The effects of brand name, price, and other search

attributes. International Journal of Research in Marketing, 17, 55-78.

DeLone, W., & McLean, E. (1992). Information systems success: The quest for the

dependent variable. Information Systems Research, 3(1), 60-95.

36

Dickson, P.R., Sawyer, A.G. (1990). The price knowledge and search of supermarket

shoppers. Journal of Marketing, 54, 42-53.

Donovan, R.J., Rossiter, J.R., Marcoolyn, G., Nesdale, A. (1994). Store atmosphere and

purchasing behavior. Journal of Retailing, 70(3), 283-294.

Dreze, X., Hoch, S.J., & Purk, M.E. (1994). Shelf Management and Space Elasticity.

Journal of Retailing, 70(4), 301–326.

Dutta, S., Kwan, S., & Segev, A. (1998). Business transformation in electronic

commerce: A study of sectoral and regional trends. European Management Journal,

16(5), 540-551.

Eighmey, J. (1997). Profiling user responses to commercial web sites. Journal of

Advertising Research, 37(3), 59-66.

Fox, E. J., Montgomery, A.L.,& Lodish, L.M. (2004). Consumer shopping and spending

across retail formats. Journal of Business, 77(2), 25-60.

Fram, E.H. & Grady, D.B. (1995). Internet buyers: Will the surfers become buyers?

Direct Marketing, 58(6), 63-65.

Gail, T. & Scott, L. (1995). Waiting time delays and customer satisfaction in

supermarkets. The Journal of Services Marketing, 9(5), 20-29.

Geuens, M., Brengman, M. & S‟Jegers, R. (2003). Food retailing, now and in the future:

A consumer perspective. Journal of Retailing and Consumer Services, 10(4), 241-251.

Guadagni, P.M., Little, J.D.C. (1983). A logit model of brand choice calibrated on

scanner data. Marketing Science, .2(3), 203-238.

Huang, Y. & Oppewal, H. (2006). Why consumers hesitate to shop online: An

experimental choice analysis of grocery shopping and the role of delivery fees.

International Journal of Retail & Distribution Management, 34, 334-353.

37

Huff, D. (1964). Defining and Estimating a Trading Area. Journal of Marketing, 28, 34–

38.

Ismail, H. & Abdullah, N.A. (2001). The important of company image toward customer

satisfaction. Proceedings of the Academy of Marketing Studies, 6(1), 28-31.

Jacoby, J. & Olson, J.C. (1977). Consumer response to price: An attitudinal, information

processing perspective. Moving Ahead with Attitude Research, Y. Wind and P.

Greenberg, eds. Chicago: American Marketing Association, 73-86.

Katz, K., Larson, B. & Larson, R. (1991). Prescription for waiting-in-line blues:

entertain, enlighten, and engage. Sloan Management Review, 32, 44-53.

Kim, J.O., & Jin., B. (2001). Korean consumers‟ patronage of discount stores: Domestic

vs. multinational discount store shoppers‟ profiles. Journal of Consumer Marketing,

18(3), 236–255.

Kim, M., Kim, J.-H. & Lennon, S.J. (2006). Online service attributes available on apparel

retail web sites: An E-S-QUAL approach. Managing Service Quality, 16(1), 51-77.

Koo, D.M. (2006). The fundamental reasons of e-consumers‟ loyalty to an online store.

Electronic Commerce Research and Applications, 5, 117-130.

Kotler, P.H. (1973). Atmospherics as a Marketing Tool. Journal of Retailing, 49, 48-64.

Kotler, P.H. (1991). Marketing Management: Analysis, Planning, and Control, 8th edn

(Englewood Cliffs, NJ, Prentice-Hall).

Lin, J. C.-C. & Lu, H. (2000). Towards an understanding of the behavioural intention to

use a web site. International Journal of Information Management, 20, 197-208.

Lindquist, J. (1974–1975). Meaning of image: a survey of empirical and hypothetical

evidence. Journal of Retailing, 50(4), 29-38.

38

Loiacono, E., Watson, R. & Goodhue, D. (2002). WEBQUAL: a measure of web site

quality. Terry College of Business, Athens, GA, working paper

Martineau, P. (1958). The personality of retail store. Harvard Business Review, 36(1),

47–55.

Mazarsky, D. & Jacoby, J. (1985). Forming Impressions of Merchandise and Service

Quality, Perceived Quality. Eds. Jacob Jacoby and J. Olson. Lexington, MA: Lexington

Books, 13-54.

Mazursky, D. & Jacoby, J. (1986). Exploring the development of store images. Journal of

Retailing, 62, 145-165.

Molino, A., Martin, V.J., Santos, J. & Aranda, E. (2009). Consumer service and loyalty in

Spanish grocery store retailing: An empirical study. International Journal of Consumer

Studies, 33, 477-485.

Monsuwé, T.P., Dellaert, B.G.C. & de Rutyer, K. (2004). What drives consumers to shop

online? A literature review. International Journal of Service Industry Management,

15(1), 102-121.

Morey, R.C. (1980). Measuring the impact of service level on retail sales. Journal of

Retailing, 56, 81-90.

Murray, K.B. (1991). A test of services marketing theory: Consumer information

acquisition activities. Journal of Marketing, 55(1), 10–25.

Omar, O. (1999). Retail Marketing. London: Pitman Publishing.

Pan, Y. & Zinkhan, G.M. (2006). Determinants of retail patronage: A meta-analytical

perspective. Journal of Retailing, 82(3), 229-243.

Parasuraman, A., Zeithaml, V.A. & Berry, L.L. (1988). SERVQUAL: a multiple-item

scale for measuring consumer perceptions for service quality. Journal of Retailing, 64(1),

12-40.

39

Parasuraman, A., Zeithaml, V.A. & Malhotra, A. (2005). E-S-QUAL: a multiple-item

scale for assessing electronic service quality. Journal of Service Research, 7(3), 213-233.

Paulins, V.A. (2005) An analysis of customer service quality to college students as

influenced by customer appearance through dress during the in-store shopping process.

Journal of Retailing and Consumer Services, 12, 345–355.

Peterson, R.A., Balasubramanian, S. & Bronnenberg, B.J. (1997). Exploring the

implications of the internet for consumer marketing. Journal of the Academy of

Marketing Science, 25(4), 329-346.

Ranganathan, C. & Ganapathy, S. (2002). Key dimensions of business-to-consumer web

sites. Information and Management, 30, 457-465.

Richards, B. (1996). Technology (a special report): let the buying begin. How big a bite?

The Wall Street Journal, p. R10.

Rigby, E. (2005). Tesco quick to home in on net potential. Retrieved from

http://news.ft.com/cms/s/f5ac2276-8f78-11d9-af70-00000e2511c8.html

Santos, J. (2003). E-service quality: a model of virtual service quality dimensions.

Managing Service Quality, 13(3), 233-246.

Saridakis, C. (2009). A hybrid conjoint model for the identification of the UK

supermarket choice determinants: An exploratory study. The international Review of

Retail, Distribution and Consumer Research, 19(2), 103-133.

Seddon, P. (1997). A respecification and extension of the DeLone and McLean model of

IS success. Information Systems Research, 8(3), 240-253.

Seiders, K., Simonides, C. & Tigert, D.J. (2000). The impact of supercenters on

traditional food retailers in four markets. International Journal of Retail & Distribution

Management, 28(4/5), 181-195.

40

Sharma, A. & Sheth, J.N. (2004). Web-based marketing: the coming revolution in

marketing thought and strategy. Journal of Business Research, 57(7), 696-702.

Sharma, A. & Stafford, T.F. (2000). The effect of retail atmospherics on customers‟

perceptions of salespeople and customer persuasion: An empirical investigation. Journal

of Business Research, 49, 183-191.

Solomon, M.R (2009). Consumer Behavior: Buying, Hving, and Being. Pearson

Education International, 8th

edition; 121, 413, 648, 688.

Stanley, T.J. & Sewall, M.A. (1976). Image inputs to a probabilistic model: Predicting

retail potential. Journal of Marketing, 40, 48-53.

Tan, Y.H. & Thoen, W. (2000–2001) Toward a generic model of trust for electronic

commerce. International Journal of Electronic Commerce, 5(2), 61–74.

Volle, P. (2001). The short-term effect of store-level promotions on store choice, and the

moderating role of individual variables. Journal of Business Research, 53, 63-67.

Wachter, K. (2002). Longitudinal assessment of web retailers: Issues from a consumer

point of view. Journal of Fashion Marketing and Management, 6(2), 134-145.

Walters R.G.& Rinne H.K. (1986). An empirical investigation into the impact of price

promotions on retail store performance. Journal of Retailing, 62, 237-266.

Wang, S., Beatty, S.E. & Foxx, W. (2004). Signaling the trustworthiness of small online

retailers. Journal of Interactive Marketing, 18(1), 53-69.

Wolfinbarger, M. & Gilly, M. (2003). ETailQ: dimensionalizing, measuring, and

predicting retail quality. Journal of Retailing, 79, 183-193.

Yang, Z. & Fang, X. (2004). Online service quality dimensions and their relationships

with satisfaction: A content analysis of customer reviews of securities brokerage services.

International Journal of Service Industry Management, 15(3), 302-326.

41

Zbytniewski , J.A. (1979). How Do Shoppers Choose a Supermarket. Progressive

Groser. Augustus, 105-107.

Zeithaml, V.A. (1988). Consumer perceptions of price, quality and value: A means-end

model and synthesis of evidence. Journal of Marketing, 52, 2-22.

Zeithaml, V.A., Parasuraman, A. & Malhotra, A. (2002). A conceptual framework for

understanding e-service quality: Implications for future research and managerial practice.

Working paper, Report No. 00-115. Marketing Science Institute, Cambridge, MA.

Zeithaml, V.A., Parasuraman, A. & Malhotra, A. (2002). Service quality delivery through

web sites: a critical review of extant knowledge. Journal of the Academy of Marketing

Science, 30(4), 362-375.