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Shopping Model of the Time‐Sensitive Consumer
Abstract
The shopping behavior of time-sensitive consumers has been modeled as an economic model of choice. Consumers are said to balance the costs of time spent commuting to the store and in the store with storage costs and other nontime costs of shopping. In so doing, these consumers tend to minimize their overall costs. Propositions are developed and tested using this economic model of shopping. The model is extended beyond time sensitivity to include deal proneness; further propositions are developed and tested using the extended model. The empirical results support the derived models.
... Namely, many shoppers are under time pressure and are more time sensitive, which makes time an important and scarce resource (Lucia-Palacios, Pérez-López and Polo-Redondo, 2016). Moreover, some consumers might shop faster than the others, especially in familiar environment, and as a result their unplanned spending might decrease (Umesh, Pettit and Bozman, 1989). Furthermore, consumer differences in demographics and their proneness to retail stimuli also strongly affect duration of consumers' shopping activity, and as such retail outcomes might vary (Feldman and Hornik, 1981;Donovan et al., 1994). ...
... Previous research suggests that the relationship between time and income is less clear (Forsythe and Bailey, 1996). While Umesh, Pettit and Bozman (1989) found no relationship between income and time sensitivity, Arndt andGronmo (1977), andMcDonald (1994) found in general retailing setting that income was positively related to time spent shopping. Some other research indicates that income positively affects time spent in price information search (Kolodinsky, 1990). ...
The purpose of this study is to explore the impact of various antecedents and behavioural consequences of consumers' perceptions of time spent on shopping for clothing products. Examined antecedent variables are gender, age, income, fashion consciousness and visual merchandising, while outcomes include the number of clothing items purchased. The data, collected by consumer survey in Croatia, was analysed using exploratory and conÞ r-matory factor analyses, and structural equation modelling (SEM). The major Þ ndings indicate that visual merchandising has the greatest and positive effect on time spent shopping. As expected, women and younger consumers spend more time shopping than men and older consumers. As for the outcomes , shopping time is positively related to consumer purchases. The study was conducted at a single point in time and was carried out while there was still crisis in Croatia, in a situation where consumers spend less on fashion products. The present study provides the insights into the determinants and consequences of time expenditure and might help fashion retailers design more successfully retailing strategies to encourage consumers to spend more time on shopping in fashion stores, which in turn leads to higher sales. JEL ClassiÞ cation M31, M39, L67, D12 Original scientiÞ c paper M. MIHIĆ, I.-D. ANIĆ, I. KURSAN MILAKOVIĆ: Time spent shopping and consumer clothing purchasing behaviour EKONOMSKI PREGLED, 69 (2) 89-105 (2018) 90
... Namely, many shoppers are under time pressure and are more time sensitive, which makes time an important and scarce resource (Lucia-Palacios, Pérez-López and Polo-Redondo, 2016). Moreover, some consumers might shop faster than the others, especially in familiar environment, and as a result their unplanned spending might decrease (Umesh, Pettit and Bozman, 1989). Furthermore, consumer differences in demographics and their proneness to retail stimuli also strongly affect duration of consumers' shopping activity, and as such retail outcomes might vary (Feldman and Hornik, 1981;Donovan et al., 1994). ...
... Previous research suggests that the relationship between time and income is less clear (Forsythe and Bailey, 1996). While Umesh, Pettit and Bozman (1989) found no relationship between income and time sensitivity, Arndt andGronmo (1977), andMcDonald (1994) found in general retailing setting that income was positively related to time spent shopping. Some other research indicates that income positively affects time spent in price information search (Kolodinsky, 1990). ...
The purpose of this study is to explore the impact of various antecedents and behavioural consequences of consumers’ perceptions of time spent on shopping for clothing products. Examined antecedent variables are gender, age, income, fashion consciousness and visual merchandising, while outcomes include the number of clothing items purchased. The data, collected by consumer survey in Croatia, was analysed using exploratory and confirmatory factor analyses, and structural equation modelling (SEM). The major findings indicate that visual merchandising has the greatest and positive effect on time spent shopping. As expected, women and younger consumers spend more time shopping than men and older consumers. As for the outcomes, shopping time is positively related to consumer purchases. The study was conducted at a single point in time and was carried out while there was still crisis in Croatia, in a situation where consumers spend less on fashion products. The present study provides the insights into the determinants and consequences of time expenditure and might help fashion retailers design more successfully retailing strategies to encourage consumers to spend more time on shopping in fashion stores, which in turn leads to higher sales.
... According to Wagner (2007) the customers also rate the shopping experiences based on enjoyment, worth and superiority. The time spent in going to the store is balanced with the cost of the storage and the other costs of shopping that is not related to time in order to minimize their overall costs (Umesh, Pettit & Bozman, 1989). It has been seen that those retail outlets that are close to the residence of the customers provide the greatest shopping value for buying groceries and so the increase in the price of the gasoline favours the local retailers (Amanor Boadu, 2009). ...
... Similarly, service and shopping convenience factors were top-ranked dicount store patronage motive factors in Korea, and price factor was ranked weak fi fth ( Jin and Kim, 2003). The grocery shopping theory posits grocery shopping constitutes a routine type of consumer behavior and shoppers tend to optimize their time and money expenditures (Jacoby, Szybillo and Berning, 1976;Umesh, Pettit and Bozman, 1989). Accordingly, shoppers seek for effi cient shopping, where convenience plays an important role. ...
Prediction of retail patronage has long been of interest to scholars and practitioners. For retailers, the importance of this theory is in gaining the ideas and knowledge of how to design the retailing strategy tailored to specific consumers’ needs and wants. The present paper examines the importance of store patronage motives for major shopping trips and explores how they are associated with purchasing outcomes and retailers’ performance. Questions addressed here were examined with data collected from a consumer and company questionnaires carried out in the Croatian grocery sector in 2004. Data was analysed using factor and cluster analysis, analysis of variance (ANOVA) and multiple regression as well. The analysis produced 6 store patronage motive factors, shopping convenience being the most important factor for generating store traffic, and prices for enhancing monthly sales level. Four shopper groups with significantly different shopping behaviour were identified. Since retailers’ sales level is determined by store traffic and not by the average spending per shopper, the retailers should focus to increase store traffic by offering the best package of store attributes and loyalty programmes, targeting each shopper group differently.
... In reality, a customer who faces an excessive waiting time during a visit to a service provider may renege or never return after leaving unsatisfied after being served. Very few studies incorporate relations between the waiting time and arrival rate at a later point in time (Ittig, 1994;Umesh et al., 1989), which can substantially influence revenue and profit (Ittig, 2002). ...
In many service industries, customers have to wait for service. When customers have a choice, this waiting may influence their service experience, sojourn time, and ultimately spending, reneging, and return behavior. Not much is known however, about the system-wide impact of waiting on customer behavior and resulting revenue. In this paper, we empirically investigate this by analyzing data obtained from 94,404 customers visiting a popular Indian restaurant during a 12 month period. The results show that a longer waiting time relates to reneging behavior, a longer time until a customer returns, and a shorter dining duration. To find out the impact of the consequences of waiting time, we use the empirical findings and data collected in a simulation experiment. This experiment shows that, without waiting, the total revenue generated by the restaurant would increase by nearly 15% compared to the current situation. Stimulating customers to reserve could enable restaurants to reap part of this benefit. Furthermore, the results of simulation experiments suggest that, within the boundaries of the current capacity, revenue could be increased by a maximum of 7.5% if more flexible rules were used to allocate customers to tables. Alternatively, by increasing the existing seating capacity by 20%, revenue could be boosted by 7.7% without the need to attract additional customers. Our findings extend the knowledge on the consequences of customer waiting, and enable service providers to better understand the financial and operational impact of waiting-related decisions in service settings.
Bu çalışmada dinamik servisli bir kuyruk modeli oluşturulmaya çalışılmıştır. Böyle bir modeldeki temel amaç müşteri geliş ve değişim bilgilerine göre servis veya servislerin sisteme dahil edilmesi veya çıkartılması veya diğer bir ifadeyle periyodik yoğunluk ve boşluğun çözüme kavuşturulmasıdır. Dinamik servis modelleri tek kuyruklu ve çok servisli sistemler için geliştirilmiş bir yöntemdir. Dinamik servis modelleri algoritması gereken sayıdaki servis sayısını sisteme dahil etmeyi hedeflemektedir. Burada dikkat edilmesi gereken temel nokta bekleyen maksimum müşteri sayısının önsel tahminlerinin olmadığı durumlarda çalışmasıdır. Şayet gelen müşteri sayısında marjinal bir artış söz konusu olursa model sisteme sistemin izin verdiği miktarda servisi dahil etmeyi planlamaktadır. Aynı şekilde bunun aksi durumu da geçerli olmaktadır.
Currently, retail data are both accessible and plentiful while the retail space has become increasingly competitive. When combined with technology like mobile computing and low cost analytic techniques, data can now be leveraged by companies to dynamically offer individualised promotions in real time. This paper considers the relative value of three retail information elements which can be used by retailers to dynamically identify a subset of product offerings to promote to their customers. The retail information elements considered are: (a) product markup, (b) customer preference estimates gleaned from purchase history and (c) retailer inventory positions. The importance of each element is evaluated singularly and in combination as is their effect on promotion success, inventory costs and average markup. Computational results show that, on average, dynamic promotion policies incorporating all retail information elements can increase expected profit by 14.5% over policies that consider only customer preference and by 8.4–9.1% over policies that consider only product margin or inventory. Results demonstrate that customer preference information alone does little to improve performance but provides substantial synergistic benefits when combined with either inventory or markup information elements. The most information intensive dynamic promotion policy is then extended to include price as a decision variable.
A model of consumer buying behavior is used to identify household characteristics that should affect deal proneness. The model treats household purchasing and inventory decisions like those of a firm. In other words, the household's purchasing decisions are assumed to be based on such factors as transaction costs, holding costs, and stockout costs in addition to product price. Household characteristics then are related to these cost parameters to identify households that are likely to be deal prone. The predictions are tested empirically by use of panel data for five frequently purchased products. The empirical results indicate that deal prone households can be identified and that the key variables affecting deal proneness are household resource variables such as home ownership and automobile ownership.
Food retailers regularly offer products for less than normal market price in special sales or deals. This paper briefly examines several common explanations for this phenomenon and finds the analyses to be less than complete. It then presents an explanation for dealing of storable products based on the idea of transfering inventory carrying costs from the retailer to the consumer. An inventory control model is described in which both consumers and the retailer act so as to minimize their own costs. Results derived from this model are then presented. Data relevant to both the consumer and the retailer model are presented and analyzed. The conclusion is that the data are consistent with the predictions of the models. Finally, the strategic implications of the model for manufacturers and retailers are discussed.
A critical element in the evolution of a fundamental body of knowledge in marketing, as well as for improved marketing practice, is the development of better measures of the variables with which marketers work. In this article an approach is outlined by which this goal can be achieved and portions of the approach are illustrated in terms of a job satisfaction measure.
The authors suggest that there is more than one type of outshopper, each type motivated by needs emanating from unique socioeconomic, life cycle, and life style perspectives. These concepts are tested with an empirical classification of outshoppers. The relationships revealed have important implications for marketers in the process of (1) developing local retail facilities and appeals to reduce loss of customers to other trade areas and (2) designing retail programs to attract consumers from contiguous trade areas.
Deal proneness is a function of both the consumer's buying behavior and the frequency with which a given brand is sold on a deal basis. A method is developed for combining these factors in a statistical measure of deal proneness for an individual consumer. Through regression analysis four consumer variables are identified as having a significant influence on the Deal Proneness Index, but these variables explain only a small percentage of total variation in the Index. The findings raise some doubt about the ability of consumer deals to accomplish the manufacturer's promotional objectives.
This paper presents the results of an exploratory study of female shoppers influenced to try new grocery products by sales promotions coupons. The findings indicate that this consumer group represents a sizable market segment with many unique characteristics. Knowledge of the unique demographic and psychographic characteristics of this segment should facilitate development of promotional strategies to elicit early trial of new products.