Emphatic Store Formats- A Behavioral Study of Consumer Packaged Goods Market in South Africa | Chapter 1 | Current Perspective to Economics and Management Vol. 1
The South African
market is in search of an effective retail format that attracts customers and
invokes a positive consumer behaviour. In an era of fourth industrial
revolution, where retailers around the globe are manoeuvring with latest
technologies like Artificial Intelligence and Robotics to help develop more
successful retail store formats to invoke positive consumer responses, little
evidence exists of empirical research, that explores the success of a selective
store format in the South African Consumer Packaged Goods (CPGs) market or Fast
Moving Consumer Goods (FMCGs) market. Retail store formats are required to be
aligned with the changing customer taste and preferences, and the trends in the
industry to be effective. The portfolio of retail store formats available and
selected may have a huge impact on the investment and consumer behaviour.
This research paper
explores the impact of retail store formats decision on the consumer buyer
behaviour in the Consumer Packaged Goods (CPGs) industry by surveying a
randomly selected sample of 96 respondents of consumers in the Sandton area of
Johannesburg, South Africa. It became apparent through the survey results that
the respondents are aware of the alternative retail formats, which increases
their probability as customers of Consumer Packaged Goods to visit and buy from
a store of their choice. It is established through empirical research that
Hypermarkets followed by Convenience Stores and Super Markets are the most
preferred retail stores by the customers of CPGs whereas Independent Retail
Store has an insignificant impact on the customers. As a consequence the
leaders and management of the retail stores in South Africa need to study and
analyse the most preferred and successful retail store formats. The retailers
in CPGs industry can accordingly decide to focus on the retail store formats
that have shown a significant impact on the consumer behaviour. However, the
retail industry is very dynamic and the effect of fourth industrial revolution
has to be analysed further to enhance the customer retail experience and
positively influence their buying behaviour.
Author(s) Details
Dr. Rajesh Sharma
Regenesys Business School, Johannesburg, South Africa.
Regenesys Business School, Johannesburg, South Africa.
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