CONSUMERS` PERCEPTIONS TOWARD RETAIL STORES

Transcription

CONSUMERS’ PERCEPTIONS TOWARD RETAIL STORES
COMPARING BETWEEN SUPERSTORES AND
FAMILY-RUN STORES IN BANGKOK
By
Awng Di
SIU THE: SOM-MBA-2007-04
CONSUMERS’ PERCEPTIONS TOWARD RETAIL STORES
COMPARING BETWEEN SUPERSTORES AND
FAMILY-RUN STORES IN BANGKOK
A Thesis Presented
By
Awng Di
Master of Business Administration in Management
School of Management
Shinawatra University
June 2008
Copyright of Shinawatra University
Acknowledgments
With the completion of this thesis, I am grateful to many people who have
helped me with their effort: knowledge, time, financial support, energy,
encouragement and prayer.
I would like to express my special thanks to Asst. Prof. Dr. Chanchai
Bunchapattanasakda, my advisor, for his valuable advice, kind patience and
wonderful guidance. His insightful knowledge and precious experience lead me to the
completion of this study. I also thank to Asst. Prof. Dr. Pacapol Anurit for his good
lectures in Research Method class and continue comments and advices throughout the
study.
I also wish to express my gratitude to Mr. Weerapon Sripongchai who kindly
translated my questionnaire into Thai language, and all friends who distributed
questionnaires to the sample population size. I would like to express my thanks to
Shinawatra University for the privilege of studying with outstanding professors,
friendly staffs, very nice environment, standard learning equipments and scholarship
program. Finally, I thank so much to my parents and my elder sister for their financial
assistance, love, encouragement, and prayer to complete this thesis paper and MBA
degree.
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Abstract
This study compares consumers’ perceptions between retail stores: superstores
and family-run stores in Bangkok. The superstores which were used to compare with
family-run stores in this study are Big C, Carrefour and Tesco-Lotus. The study was
quantitative research using survey questionnaires to collect data from 400 shoppers in
Bangkok areas. Quantitative statistics were used to analyze data variables and test
hypotheses.
The results from this study found that the competition between superstores and
family-run stores resulted in more benefits to customers. The customers were aware
that many family-run stores closed down because of superstores, but they preferred
free and fair competition. The results also found that the customers wanted the Thai
government to impose restrictions on superstore expansion and support family-run
stores, though they still agreed that superstores are essential for consumers and
family-run stores are not well allocated for consumers in Bangkok. Consumers were
satisfied more with marketing factors including product quality, product variety, and
stable prices of superstores. They also preferred the store environment of superstores
than with those of family-run stores. Consumers also thought that superstores
benefited the economy and society than family-run stores.
Keywords:
Consumer perception
Family-run stores
Retailing
Superstores
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Table of Contents
Title
Page
Acknowledgements
i
Abstract
ii
Table of Contents
iii
List of Figures
vi
List of Tables
vii
Chapter 1 Introduction
1.1 Background
1
1.2 Statement of Problem
2
1.3 Objectives of Study
3
1.4 Methodology
3
1.5 Expected Outcomes
3
1.6 Conceptual Framework
4
1.7 Hypotheses
4
1.8 Definition of Terms
5
Chapter 2 Literature Review
2.1 Retail Industry in Thailand
7
2.2 Thailand’s Retail Store Market Share
11
2.3 Small Retailers Threatened by Big Influx
13
2.4 Disputes in Retail Industry
15
2.5 Restrictions on Superstore Expansion and Thai Retail
17
Regulation
2.6 Retail Formats and Brands
19
2.7 Consumers’ Perceptions on Product Assortment
22
2.8 Customer Services
23
2.9 Social Cue and Store Environment
24
2.10 Concepts and Theories
26
iii
Chapter 3 Methodology
3.1 Scope of Study
29
3.2 Population and Sample Size
29
3.3 Data Collecting Method
30
3.4 Research Process
31
Chapter 4 Research Analysis and Results
4.1 Demographic Factors
32
4.2 Shopping Behavior
36
4.3 Attitudinal Statements
39
4.4 Marketing and Business Factors
41
4.5 Economic and Social Factors
46
4.6 Testing Hypotheses
49
Chapter 5 Conclusions, Discussions and Recommendations
5.1 Summary of the Study
62
5.2 Findings from Attitudinal Statements
63
5.3 Hypothesis Testing
64
5.4 Research Difficulties and Limitations
65
5.5 Implementation
65
5.6 Business Suggestions
66
5.7 Recommendations for Future Research
66
References
67
Appendices
Appendix A Questionnaire (English)
74
Appendix B Questionnaire (Thai)
79
Appendix C Thailand Population
84
Appendix D Thailand Retail Sales Shares by Format (2005)
85
Appendix E Thailand Retail Market Shares
86
Appendix F Leading Superstores in Thailand (2000 – 2005)
87
Appendix G Thailand Retail Sales Index (2005 – 2007)
88
Appendix H Thailand Retail Sales (2005 – 2007)
89
iv
Appendix I 2006 Global Retail Development Index
90
Appendix J 2006 GRDI Market Attractiveness
91
Appendix K Research Findings
92
Biography
104
v
List of Figures
Title
Figure 1
Page
Conceptual Framework
4
Figure 3.1 Table of Likert’s Scale
30
Figure 3.2 Research Process
31
vi
List of Tables
Title
Page
Table 4.1 Demographic Factors – Gender
32
Table 4.2 Demographic Factors – Age
33
Table 4.3 Demographic Factors – Educational Background
33
Table 4.4 Demographic Factors – Occupation
34
Table 4.5 Demographic Factors - Monthly Income
34
Table 4.6 Demographic Factors - Marital Status
35
Table 4.7 Demographic Factors – Location
35
Table 4.8 Shopping Reasons
36
Table 4.9 Frequency of Shopping Times
37
Table 4.10 Frequency of Spending Shopping Time
38
Table 4.11 Spending Amounts for a Shopping
38
Table 4.12 Interpretation of Attitudinal Levels
40
Table 4.13 Interpretation of Consumer Attitudes towards Retail Stores
40
Table 4.14 Interpretation of Satisfaction Levels
41
Table 4.15 Consumer Satisfaction Levels on Product and Price
42
Table 4.16 Consumer Satisfaction Levels on Place
43
Table 4.17 Consumer Satisfaction Levels on Promotion
44
Table 4.18 Consumer Satisfaction Levels on Business Factors
45
Table 4.19 Interpretation of Perception Weighting Levels
46
Table 4.20 Consumer Perception on Economic Factors
46
Table 4.21 Consumer Perception on Social Factors
47
Table 4.22 Relationship between Demographic Factors and Product
49
Table 4.23 Relationship between Demographic Factors and Price
51
Table 4.24 Relationship between Demographic Factors and Place
52
Table 4.25 Relationship between Demographic Factors and Promotion
54
Table 4.26 Relationship between Demographic and Business Factors
56
Table 4.27 Relationship between Demographic and Economic Factors
58
Table 4.28 Relationship between Demographic and Social Factors
60
Table 5
64
Hypothesis Results
vii
Chapter 1
Introduction
1.1 Background
Over the past decades, retail stores in Thailand have developed from
traditional stores into modern stores and chain stores as with other places in the world.
Most of the major developments have taken place in Bangkok, the capital city. The
rising incomes and changing lifestyles have stimulated the development and
modernization of retailing in Thailand. The strong competition in Bangkok has also
encouraged superstores to move to provincial areas where significant competition has
yet to develop and where income levels are now beginning to justify the investments.
The giant companies are able to satisfy their shareholders by achieving continued
growth (Feeny, Vongpatanasin, & Soonsatham, 1996). Industry observers indicate
that superstore business is expanding rapidly due to their variety of product and
discount price. They make customers convenience with air-conditioned stores and
they attract customers with modern store layout. As the number of superstores
continues to grow, the number of family-run stores has fallen. In 2001, according to
the Commerce Ministry, more than 900 local retail operators ceased operations
because they were not able to compete with superstores (Jitpleecheep, 2006).
Kazmin and Rigby (2006) stated that Thailand considered restrictions on the
expansion of large foreign retailers such as Big C, Tesco Lotus, Carrefour and others,
following complaints from local retailers and consumer product manufacturers. The
Commerce Ministry has established a special committee to lay down new rules,
principles and guidelines for the expansion of retailers and wholesalers. Karun
Kittisataporn, permanent secretary for the commerce ministry, has also threatened
hefty fines or even prison sentences for big retailers who mistreat their suppliers.
According to ministry guidelines unveiled, retailers are prohibited from “unfair
practices” such as selling products below cost, asking suppliers for deep discounts,
demanding higher introduction fees for new products and returning products without
valid reason. Violators may be fined up to THB 6 million or jailed for up to three
years (Rigby & Kazmin, 2006).
Local retailers and wholesalers have set up the Thailand Wholesale and Retail
Association, to mobilize the buying power of tens of thousands of wholesalers and
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small retail stores in order to compete with giant chain stores. While critics may
condemn the government for failing to protect small retailers, Thai consumers have
benefited the most from the competition which has forced all industry to enhance their
services to meet international standards. Thai consumers have also chosen to shop in
more air-conditioned stores with friendly staffs and a wide variety of reasonably
priced products. Other advantages are that Thai-made products are sold on the store
shelves of major superstores around the world (Jitpleecheep, 2006). Among the
superstores in Thailand, in this study, three international superstores (Big C, Tesco
Lotus and Carrefour) are chosen to compare with local family-run stores in order to
ascertain the perceptions of Thai consumers toward retail stores. Each superstore has
its core competencies such as discount prices and a variety of products by which they
are able to compete internationally and regionally. Local family-run stores also have
their own competitive advantages such as loyalty and location that make them survive
when they compete with the giants. Eventually, the study will focus on the perception
of Thai consumers toward retail stores through which government can be aware of
consumers’ benefits that might help issuing rules and regulations. Family-run stores
and superstores can also know about consumer perceptions of them in Bangkok by
which they can set strategies to achieve their goals.
1.2 Statement of Problem
Crispin and Shawn (2008) stated that foreign giant retailers such as Tesco
were among the country's largest foreign investors in the aftermath of the 1997-98
Asian financial crises. Their rapid in-country expansion has stirred a heated and stillunresolved political debate about whether foreign retail investments are as beneficial
to the country as more export-oriented foreign direct investments. Although the
growth of superstores benefits local consumers by attracting them with low prices and
convenient shopping, it has damaged many smaller family-run stores. According to a
study by Thai Chamber of Commerce, by the end of 2005, there are 3709 foreign
retail stores operating in Thailand including 49 Big C stores, 72 of Tesco Lotus, 21
Carrefour and 29 Makro, 112 of Lotus Express and 3,300 7-Elevens, as well as some
others, compared with the departure of about 300,000 small local family-run shops in
the past decade (Jitpleecheep, 2006).
Thailand’s retail business, in Bangkok and other major cities, has changed a
lot because of the influence of foreign giant superstores and local giant chain stores
2
that have taken over the market. After the economic crisis, the superstore operators
continue to expand their market despite opposition by local retailers. From an
economic perspective, superstores may or may not be the best value for the
community but perhaps more significant than any of the economic considerations are
the qualitative benefits of local ownership. Locally owned retail stores build strong
communities, relationship, and create a sense of place and community identity. They
also reflect the local culture. Superstores, by contrast, may be sapping communities of
their character and individuality. The arrival of superstores may also affect the
destruction of important local landmarks (Jitpleecheep, 2006).
1.3 Objectives of Study
To determine consumers’ perceptions toward superstores and family-run
stores in Bangkok.
1.4 Methodology
This research is quantitative using survey questionnaires to collect primary
data from customers who are shopping in business districts and urban areas in
Bangkok using convenience sampling.
1.5 Expected Outcomes
This study is expected to know consumers’ attitudes toward retail stores such
as how much superstores affect on family-run stores, and to know consumers’
satisfaction on marketing, business, economic and social factor comparing between
superstores and family-run stores in Bangkok. After studying consumer perceptions
on them, superstores and family-run stores can set business strategies to better achieve
their goals.
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1.6 Conceptual Framework
Independent Variables
Demographic Factors
- Gender
- Age
- Education
- Occupation
- Monthly Income
- Marital Status
- Resident Place
Dependent Variables
Consumers’
Perceptions toward
Retail Stores
Superstores
- Marketing Factors
- Business Factors
- Economic Factors
- Social Factors
Family-run Stores
- Marketing Factors
- Business Factors
- Economic Factors
- Social Factors
Figure 1 Conceptual Framework
1.7 Hypotheses
H01: Consumers with different demographic factors which are gender, age,
education, occupation, monthly income, marital status and resident place have no
different perceptions on marketing factors between superstores and family-run stores.
education, occupation, monthly income, marital status and resident place have
different perceptions on business factors between superstores and family-run stores.
different perceptions on economic factors between superstores and family-run stores.
different perceptions economic factors between superstores and family-run stores.
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different perceptions on social factors between superstores and family-run stores.
1.8 Definition of Terms
Perception: The process by which an individual selects, organizes, and
interprets stimuli into a meaningful and coherent picture of the world (Schiffman &
Kanuk, 2004).
Retailing: Retailing is defined as the sale of goods and services to consumers
for their own use. The term has been adopted by a wide range of service providers
such as banks and other financial institutions, but the focus of this entry is on the sale
of goods to consumers. The entry outlines the emergence and decline of various retail
formats, including shopping centers, retail parks, department stores, variety stores,
superstores, hypermarkets, discounters and warehouse clubs. The main functions
within the value chain of retailing are summarized, including location, product
selection, buying, retailer branding, pricing, advertising, in-store design, human
resource management and logistics (Warner, 2002).
Superstores: Superstores are very large supermarkets or shops selling
household goods and equipment. Superstores are usually built outside city centers
away from other shops (Cobuild, 2001).
Hypermarket: A very large supermarket, usually built outside a town that
sells a wide range of goods (Macmillan Publisher Limited, 2002).
Chain Store: One of a series of stores owned by one company and selling the
same merchandise (Oxford University Press, 2005).
Family-run Business: A business environment that is owned or controlled by
a family, or one in which ‘family values’ have a strong bearing. There is no strict
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definition of what constitutes a family firm, and organizational size is no guide. The
smallest business may be clearly identified as a family affair according to who owns
or controls it. But the largest business can market themselves as a family firm,
meaning that they strongly uphold the values of a paternal founder, who may or may
not be actually present (Vernon, 2001).
Core Competencies: Core competency has three characteristics: (1) It is a
source of competitive advantage in that it makes a significant contribution to
perceived customer benefits, (2) it has applications in a wide variety of markets, and
(3) it is difficult for competitors to imitate (Kotler & Keller, 2006).
Small Sized Business Enterprises: Bank of Thailand (2004) has adopted a
definition for small sized enterprises set by the Industry Ministry as a benchmark for
lending by retail commercial banks:
•
Small enterprise in manufacturing or service sector has fewer than 50
employees and less than THB 50 million in fixed assets (Bank of Thailand,
2004).
•
Small enterprise in wholesale sector has fewer than 25 employees and less
than THB 50 million in assets (Bank of Thailand, 2004).
•
Small enterprise in retail sector has fewer than 15 employees and less than
THB 30 million (Bank of Thailand, 2004).
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Chapter 2
Literature Review
2.1 Retailing Industry in Thailand
Jitpleecheep (2006) stated that, over the past 60 years, Thailand’s shopping
landscape has changed dramatically. At that time, everyday groceries were sold in wet
markets and family shophouses. Yaowarat (Chinatown) was the largest shopping area
where a wide range of local and imported consumer products from shophouses. Thai
department stores included Tai Fah, Maw Dam (Black Cat), Nightingale, Artang,
Pacific and Kwan Nakhon were recognized as the first modern department stores
which sell clothes, home products, a few cosmetics and shoes. However, Thai retail
market was really revolutionized in 1972. The opening of Ratchadamri Arcade
brought a new era to Bangkok shopping sense. The complex included 220 airconditioned shops; restaurants, coffee shops, beauty treatment centers, boutiques and
leather goods centers. A Japanese retail chain, the Daimaru department stores, was
also introduced at the complex as the first time (Jitpleecheep, 2006).
From 1989 to 1990, many department stores entered the market. They are The
Mall, Merry Kings, Pata, Banglampoo, Cathay, Asia, Edison, Robison, Tang Hua
Seng, Big Bell, Imperial and Wellgrow. A few years later, it was the turn of foreign
and Japanese retail chains; Jusco, Isetan, Yaohan, Tokyu and Printemps department
stores. Consequently, shopping malls have become important venues for socializing
and recreation with children’s fun parks, fitness centers and movie theatres. Thai
consumers’ shopping habit went further in 1997 with the advent of foreign discount
superstore chains, touting cheaper prices, convenience and novel designs. They took
over the market in a shot period of time driven by consumers hunting for low-cost
goods during the economic crisis. Today there are 120 outlets of Big C, Tesco Lotus
and Carrefour. The Emporium, then Gaysorn, Erawan Bangkok and most recently
Siam Paragon are the high-end shopping complexes springing up of late. Thais will
have the chance to shop at Thai superstores abroad in next five decades because the
Central Group is looking to establish itself as regional retailing presence
(Jitpleecheep, 2006).
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2.1.1 Big C.
Big C is a chain of retail superstore in Thailand. Casino of France owns
approximately 63 percent of the company. The remainder is owned by Central Retail
Corporation, Thailand’s largest retail conglomerate.
As of February 2006, the
company operates 49 stores, 24 of which are in Bangkok. In 2006, Big C reported
sales of THB 58.03 billion (US$ 1.75 billion). Its main competitors are Carrefour and
Tesco Lotus (Big C Co. Ltd., 2006). Big C Supercentre is trying out a different retail
format - Mini Big C convenience store - after its Leader Price discount shops failed to
gain popularity and perform well even after seven years of operation. Jariya
Chirathivat, president for marketing and communications, said a pilot shop has
already been opened for business since last year (2006) in Sukhumvit Soi 103 in the
Udomsuk area of Bangkok. The Mini Big C's floor space of 200 square meters is
smaller than Leader Price's 300-700 square meters. Half of its shelves are filled with
house brands and half with branded products while Leader Price stocks only Big C
brands. Mini Big C so far has experienced good feedback. The company is now
developing a repositioning plan for the small-store business, including transforming
all Leader Price branches into Big C Minis and estimating the required budget, which
is expected to be finished in 2007 (Asawanipont, 2007).
Thailand tends to have many small communities, which presents a good
market opportunity for this small retail model to enter. The two major reasons why
Leader Price's five branches have been a disappointment are because they are too big
and their merchandise assortment confuses shoppers. Consumers know that those
products are Big C products when they're placed in the main superstores but when
they're in the small shop, not many people know who owns those house brands.
Asawanipont (2007) stated that the company also maintains a policy of never
advertising its house brands in the mass media so its prices can be kept below other
brands. The company found difficulty in reaching sales targets with Leader Price's
large size. The stores started with 1,000 square meters and were gradually reduced to
700 square meters for standard branches and 300 square meters for mini branches.
Turning to the whole picture, Big C superstores enjoyed a good first quarter of year
2007 with THB 14.48 billion in sales. However, it didn't achieve its growth target of
10 percent as its sales rose only 7.2 percent. But that was still satisfactory given the
economic slowdown. The company will forge ahead with its plan to open four
superstores in 2007 (Asawanipont, 2007).
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2.1.2 Carrefour.
Over the past 40 years, Carrefour group has grown to become one of the
world’s leading distribution groups. The first Carrefour store was opened in 1963 in
St. Genevieve de Bois, a town close to Paris. In 1996, the first Carrefour store has
opened in Thailand. In 2003, Carrefour celebrated its 40th Year Anniversary. In Year
2005, Carrefour is number one of retailing group in Asia and Europe and the second
largest retailing group worldwide with variety of business format of retail industry
The Carrefour hypermarkets offer a wide range of food and non-food products at very
attractive prices; their shelves stock an average of 70,000 items (Carrefour Co. Ltd.,
2007).
Jitpleecheep (2008a) stated that with an optimistic view of the stability of the
country's economy and politics, the Carrefour superstore plans to triple its investment
budget to three billion baht this year (2008) to open six or seven new branches, double
the number it had planned originally. The government has forecast that private
investment this year will increase by 5-6 percent, compared to 0.5 percent last year.
Mr Segsarn, the business development manager of CenCar Co., the local Carrefour
operator said that last year (2007) the company opened three new branches: in Chon
Buri, Rama II in Bangkok and Khlong Sam, Pathum Thani. The Rama II store, a
smaller format with 4,000 square meters, opened opposite rival Tesco Lotus at the end
of 2007. This year (2008) Carrefour plans to add six or seven new branches, both
conventional and various compact formats, but mainly around the 4,000 square meters
size. All of the new outlets will be modeled on the Chon Buri branch, its first
premium prototype store format (Jitpleecheep, 2008a).
The addition of more compact outlets will help the company speed up its
expansion and increase consumer access to its stores. Apart from new stores, the
company plans to spend at least THB 240 million to renovate its 24 existing stores
and make them premium superstores by the middle of 2008, starting with the Rama
IV, Phetkasem, Bang Yai, Ratchada and Pattaya branches. The merchandise mix will
be adjusted, increasing the proportion of non-food and home decoration items and
adding new anchors such as Boots personal-care stores. Marketing director Prapaphan
Ploysaengngam said the company would also join with Fun Characters International
(Thailand) Co Ltd, the local licensee for Disney consumer products, to co-develop
Disney merchandise to sell at all 27 Carrefour outlets this year (2008).
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2.1.3 Tesco Lotus.
Established in 1998, Tesco Lotus was a joint venture of the Charoen
Pokphand Group and Tesco, the British giant superstore chain and was established in
1998. It is facing criticism over the growth of superstores in Thailand. The CP Group
sold its shares of Tesco Lotus in 2003. In Thailand, the stores are operated by Ek-Chai
Distribution System Co., Ltd. In various locations within Thailand, Tesco Lotus
Express stores (a smaller version of the Tesco Lotus supermarket) have opened at gas
stations and on busy roadside locations. They have a total of 24 superstores in
Bangkok, 31 superstores upcountry, 14 Lotus Markets, 15 Value stores and 189
Express stores with more being built all the time (Tesco Lotus Co. Ltd., 2008)
Crispin and Shawn (2008) stated that, when Tesco Lotus opened a new
superstore in the remote Thai border town of Mae Sai, local protestors hell-bent
against the foreign retail operator's arrival sent a coffin and petition written in blood
to company executives. Since first establishing operations in Thailand in 1998, Tesco
Lotus superstores have been targeted with grenade blasts, rocket attacks and gunfire
by various local interest groups. Tesco announced strong profit growth for annual
2007. International sales contributed strongly to Tesco's GBP 2.8 billion (US$ 5.6
billion) pre-tax profit, which was up 11.8% year on year. Tesco’s international
revenues, of which Thailand contributes around 3.7%, meanwhile were up 25.6% year
on year and accounted for 50% of total trading profit growth, according to company
statistics. Trading margins excluding China rose 5.8%, driven by strong growth in
South Korea, Malaysia and Thailand, according to the same statistics (Crispin &
Shawn, 2008).
Crispin and Shawn (2008) stated that the company has also long touted its
self-proclaimed socially responsible credentials, including its annual multi-million
baht donations to Thai charities and rapid-response delivery of emergency supplies to
areas hit by natural disasters, including recent flood-hit northern Thai provinces and
southern beaches struck by the 2004 tsunami. More recently, the company has
promoted a new environmentally conscious green store concept. Meanwhile, the
lawsuits filed by the company are shaping up into a public relations disaster as local
media editorials and international freedom of expression groups heap criticism on its
legal tactics. Local and foreign bloggers have called for a boycott of Tesco stores in
protest against the lawsuits, according to news reports. But as a foreign-owned
company with an ever-growing local profile and lots of political enemies, Tesco
10
Lotus' legal offensives arguably carry higher risks than mere non-governmental
organizations and editorial opprobrium.
Crispin and Shawn (2008) stated that Tesco and other superstore operators
have been able to squeeze the margins of traditional wholesalers and suppliers,
including politically powerful corporations like the Sahapat Group, which historically
commanded prices to fragmented, small-scale retailers. Some industry analysts
speculate that the superstore sector will be nearly if not fully saturated by the time the
retail legislation is finally passed, giving incumbents an advantage over new market
entrants. Until now Tesco Lotus has countered nationalistic criticisms by arguing that
its stores are net creators of jobs and provide convenient and efficient outlets for
locally produced foods and products. During these sensitive global economic times,
profitable multinational corporations face new and potentially volatile risks in the
developing world countries where they operate. That's particularly true in Thailand,
where the government's open-door investment policies are often counterbalanced on
the ground by always close-to-the-surface xenophobic sentiments, particularly against
foreign companies which compete for lucrative local markets (Crispin & Shawn,
2008).
2.2 Thailand’s Retail Store Market Share
Kuipers (2007) found that modern retail stores in Thailand represent 5% of
store numbers, but 45% of total retail sales. They have been increasing their sales
levels by an average rate of 15 per cent between 2000 and 2005, to reach a level of
THB 405 billion (US$10 billion). The superstore (hypermarket) is the main store
format for over 50% of shoppers in Thailand. In addition, over 85% of urban shoppers
in Thailand use convenience stores regularly with a high frequency of three to four
times a week. This growth from both the largest and smallest formats resulted in a
squeeze of the supermarket. In 2005, the number of supermarkets decreased by 8%
over the previous year, while the number of superstores (hypermarkets) and
convenience stores increased by 10% and 26% respectively. The main consequence of
this squeeze is that supermarkets are growing at a slower rate than other retail
formats, losing their market share in total retail sales. Eventually some smaller chains
like Jusco and Villa will decline, while leading players such as Tops and Tesco Lotus
will become prevalent. The ten Villa supermarkets in Thailand are operated by one of
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the oldest retailers in the country, Villa market, which was established in 1974. Planet
Retail calculates total sales of these stores as US$ 74 million.
The main superstore operators are Casino – who operates 47 Big C superstores
through its Thai subsidiary in which the Thai retailer Central holds a 22% minority
stake – and Carrefour. Via its 100% Thai subsidiary Cencar, Carrefour operates 23
Carrefour hypermarkets in Thailand. Both Big C and Carrefour are with average store
sizes of 10,000 m² and 9,100 m² bigger than Tesco Lotus’ largest surfaces. These
Tesco Lotus superstores (hypermarkets) are some 8,500 m² on average, but have
recorded a stronger growth in store numbers last year than Big C and Carrefour.
However, Tesco Lotus and other large surface retailers are also experiencing that land
to build these large stores in major urban areas is rapidly becoming scarce, which
drives up land prices. This will reduce the growth rate of superstore format and will
lead to an appetite for multi-format strategies. As in most Asian markets, modern
retail in Thailand is concentrated in the urban centers where income levels are higher
(Kuipers, 2007).
The growth of retail industry is also related with the growth of other economic
factors of the country. Hugh (2008) stated some growth facts (2007) of Thailand.
Gross domestic product expanded by 1.8% in the fourth quarter of 2007 up from a
1.5% rate in the third quarter. Consumer spending rose 1.6% from a year earlier in the
fourth quarter, slowing from 1.8% in the previous three months. Total investment in
the fourth quarter rose 4% , accelerating from a 2.6% gain in the previous quarter,
today's report showed. Manufacturing gained 8.1% following a 5.7% expansion in the
previous three months. Private construction contracted 8.5% from growth of 0.7% a
year earlier. Government spending increased 16 percent, compared with the third
quarter's 9.5% pace. The Bank of Thailand lowered its benchmark interest rate five
times in 2007 as the longest string of rate cuts since May 2000. It reviews borrowing
costs again this week. Most analysts expect the Bank of Thailand to keep its
benchmark interest rate unchanged at the meeting on Feb. 27 due to accelerating
inflation. Consumer prices rose 4.3% from a year earlier in January, the fastest
inflation in 18 months, as fuel and food costs increased.
12
Global retail index
Kearney (2006) found that the globalization of modern retail accelerates to
expand. Since 2001, more than 49 retailers have entered about 90 new markets. But
expansion does not equal success: Retailers left 17 markets in 2005 and are expected
to exit another 19 in 2006. Many others are struggling to generate profits. A.T.
Kearney has helped retailers prioritize their global development strategies by
publishing the Global Retail Development Index (GRDI). The Index ranks 30
emerging countries based on more than 25 macroeconomic and retail-specific
variables. Beyond the yearly findings, they also examined more than 10 years of data
points. From this analysis, they gained new insights into the patterns and effects of
retail in emerging markets, including:
•
Emerging markets pass through windows of opportunity, which remain
open for an average of 5 to 10 years.
•
Certain retail formats work better than others, depending on time of entry
and region.
•
Modern retail expansion contributes to economic growth.
2.3 Small Retailers Threatened by Big Influx
Although the growth of superstores benefits local consumers by attracting
them with low prices and convenient shopping, it has damaged many smaller familyrun stores. According to a study by Thai Chamber of Commerce, by the end of 2005,
there are 3709 foreign retail stores operating in Thailand including 49 Big C stores, 72
of Tesco Lotus, 21 Carrefour and 29 Makro, 112 of Lotus Express and 3,300 7Elevens, as well as some others, compared with the departure of about 300,000 small
local family-run shops in the past decade. Therefore, local retailers have called for the
government to establish a national retail law to restrict the expansion of foreign
retailers. Town planning regulations have failed to stem the rapid growth of
superstores, estimated to average 10% to 20% over the next few years, according to
the Thai Chamber of Commerce (Arunmas, 2006a). Last year, sales of The Mall
Group, one of the country’s largest retail groups, were estimated at THB 43 billion,
up 7% to 8% from the year before. The company expects its overall sales this year to
rise by 5% to THB 45 billion. It is adjusting its marketing strategy by focusing more
on in-store promotional events that can create sales immediately, rather than events
13
linked to image-building. It also intends to spend its advertising budget more
selectively. Thailand’s retail business overall to have a balance between traditional
and modern trade, retailers and wholesalers, and suppliers and grocery stores both in
Bangkok and upcountry, as well as create fair competition (Jitpleecheep, 2008b).
2.3.1 The affect of retail stores on local economy.
Family-run stores keep profit circulating within the local economy. They also
support a various functions of other small scale local businesses. They create
opportunities for service providers. They do business with the community bank. They
purchase goods from regional distributors. In this way, money spent at locally owned
businesses creates economic benefits through the community. By contrast, superstore
chains typically centralized these functions at their head offices. They keep local
investment and spending to a minimum. They bank with big national banks. In this
way, much of money spent at a chain store leaves the community immediately.
Family-run stores also create economic diversity and stability. Because they are
locally owned, these stores are firmly rooted in the community. They are unlikely to
move and will try to contribute their best to local economy even in crisis period.
Superstores, by contrast, tend to be fair-weather friends. They are highly mobile and
will abandon a location if profit margins do not meet their expectations. Eventually, a
community loses its local businesses to national chains and also risks losing other
economic development opportunities (Mitchell, 2000).
2.3.2 The affect of retail stores on community.
Local retail stores value the community by contributing to civic and cultural
life. Local merchants are more than providers of goods and services. They often take a
leadership role in community affairs. Many chair neighborhood organizations, host
cultural events or organize local festivals. Because they live in the places where they
do business, local business owners tend to be far more committed to the community’s
well-being and long-term stability than distant corporations. Finally, the shift from
local to absentee-owned stores means that business decisions are no longer made
locally by members of the community. In the case of superstores, these decisions
occur in distant boardrooms, where the values of the local community carry little or
no weight (Mitchell, 2000).
14
European retailers such as Tesco Lotus, Carrefour and Big C have been
opening new stores in Thailand since buying out their local joint-venture partners at
the depths of the country’s financial crisis in 1998. At the depths of the economic
crisis, superstores sales grew 16 per cent, far faster than sales growth of other retailing
formats. With the Thai economy now recovering, same-store sale are also picking up.
Superstore chains opening around Thailand are boosting the domestic economy by
creating fresh markets for local businesses and new jobs for Thais in provincial areas.
The expanding superstores are being embraced by cost-conscious Thai consumers for
their low prices and wide product selection. Superstores’ image offensive, which also
includes more traditional appeals to consumers seeking low prices and vast product
selection, underscores foreign retailers’ concern about a potential backlash, as they
rapidly expand in a country where most people still shop at traditional grocers and
open-air bazaars (Kazmin, 2001).
2.4 Disputes in Retail Industry
Phuangrach, director-general of Internal Trade Department, (2008) stated that
the ministry had received many complaints from manufacturers of plastic products
and vegetable oil about unfair fees and regulations imposed by supestores.The
department can act as a middleman to create fair regulations for suppliers and
superstores as both sides are unable to agree an acceptable compromise. Guidelines
were also drafted for rice packers and major superstores on fair trade practices. The
move came as a result of rice packers' complaints to the department that superstores
forced them to sell at lower prices and pay exorbitant fees. Retailers Big C, Carrefour,
Macro, Tesco Lotus and Tops Supermarket and the rice packers signed a
memorandum of understanding to create trading conditions that are fair to both
sides. In addition, the department is drafting a formula to calculate production costs
and sales margins to create fair pricing.
The Internal Trade Department will use this formula against the margins set by
retailers and manufacturers to decide whether to allow any proposed price increases.
Phuangrach (2008) stated the formula would be adopted to cover other goods,
particularly agricultural products, as this sector involves a large number of suppliers,
which should gave companies wanting to increase prices a clearer understanding of
the circumstances in which they can. Consumers should also get a fairer deal, as they
are less likely to be over-paying for goods. Meanwhile, Phuangrach (2008) stated that
15
the department would complete the drawing up of regulations for expansion by giant
retailers. Although Tesco Lotus and Big C still disagreed with the ministry's proposal
to regulate major retailers, they must reach agreement soon as the proposals will
create better understanding between large and small retailers. In the absence of a
business law covering retailers and wholesalers, the agreement is intended to resolve
the conflict between small and large retail operators. The proposals would limit the
location and opening hours for retail giants and commit small retailers to ending their
campaign against their larger rivals.
Supplier price problem
Thailand had already opened the door to the modern trade system, as in many
developed countries where consumers enjoyed cheaper goods and better quality than
in the days when choices were more limited. Thai government sometimes intervene
the conflict between superstores and conventional retailers and suppliers, said Ms.
Duenden, from the Thailand Development Research Institute (TDRI). In the United
States and Britain, the government as a regulator would not interfere in the business
relationships between superstores and suppliers, as long as their business practices did
not affect consumers (Maneerungsee, 2002).
Superstores have power on suppliers to lower their price because of their big
amount of order. In contrast, suppliers can charge higher to small retail shops for
small orders. This kind of negotiations is a business reality. There are also some
unfair practices by giants which are prohibitions against suppliers selling goods to
other buyers. Therefore, since the buying process, family-run stores rarely get the
same price as superstores get that can be an influence factor on setting pricing
strategy. Small Thai retailers have complained that they cannot qualify for the volume
discounts offered by suppliers and seek government intervention. Consequently,
Deputy Commerce Minister Newin Chidchob initiated an idea to require superstore
operations to disclose the fees they charge to product suppliers. As well, all fees
collected from suppliers by superstores might be subject to price controls monitored
by the Internal Trade Department (Maneerungsee, 2002).
16
2.5 Restrictions on Superstore Expansion and Thai Retail Regulation
In Thailand, foreigners (including companies where more than 49% of shares
are held by non-Thai nationals) are prohibited from engaging in retailing and
wholesaling goods under the Foreign Business Act 1999 (the FBA) unless the
registered capital of the company exceeds Bt 100 million or the company has
registered capital of Bt 20 million per store (for retail business); or the company’s
registered capital exceeds Bt 100 million per store (for wholesale business). Applying
for a foreign business license under the FBA is required if the foreign company’s
registered capital does not meet the above criteria (Mansri, 2006). Lunn and Chase
(2007) also reported that foreign entities are prohibited by the Foreign Business Act
1999 (FBA) from engaging in a wide range of activities in Thailand. Under the
existing provisions of the FBA, a company is considered to be a foreigner unless it is
registered in Thailand and Thai nationals hold more than half of the shares in the
company. Business activities which are restricted to foreigners are divided into three
lists with varying degrees of prohibition.
List 1 activities are absolutely prohibited to foreigners. These businesses are
not open to foreigners for special reasons and include activities such as media,
farming or land trading. List 2 activities may be undertaken by a foreigner with
ministerial approval. These businesses are restricted in the interests of national
security or relate to arts and culture, or environmental resources and include mining.
List 3 activities may be undertaken by a foreigner only if a foreign business license is
granted by the government. The activities on this list are those in which Thai nationals
are not yet ready to compete with foreigners. List 3 is by far the most extensive list
prohibiting most forms of business activity including wholesaling, retailing and all
service businesses. Notably, manufacturing for export is not included in List 3.
Due to the cumbersome and unwieldy procedures for obtaining ministerial
approval and foreign business licenses, a practice has developed where foreigners use
'Thai' entities to invest into Thailand. Historically, foreigners investing in Thailand
have established Thai-registered companies such that, while Thai nationals hold the
majority of issued shares, the majority of voting and dividend rights attach to
shares held by the foreign investor. These structures are routinely used by the foreign
investment community in Thailand where restrictions under the FBA prohibit
majority shareholdings by foreigners or foreign business licenses would be required
(Lunn & Chase, 2007)
17
Kazmin and Rigby (2006) stated that Thailand considered restrictions on the
expansion of large foreign retailers such as Big C, Tesco Lotus and Carrefour and
others,
following
complaints
from
local
retailers
and
consumer
product
manufacturers. The commerce Ministry has established a special committee to lay
down new rules, principles and guidelines for the expansion of retailers and
wholesalers. Karun Kittisataporn, permanent secretary for the commerce ministry, has
also threatened hefty fines or even prison sentences for big retailers who mistreat their
suppliers. According to ministry guidelines unveiled, retailers are prohibited from
“unfair practices” such as selling products below cost, asking suppliers for deep
discounts, demanding higher introduction fees for new products and returning
products without valid reason, Violators may be fined up to Bt 6 million or jailed for
up to three years (Kazmin & Rigby, 2006).
The Retail Laws draft was completed in 2003, but the cabinet decided to hold
it and suggested the use of existing laws, including town planning regulations of the
Interior Ministry, to control the expansion of superstores. However, retail zoning
laws, drafted by the Public Works and Town and Country Planning Department, could
not be effectively enforced because of the 1979 Building Control Law. The Building
Law also allowed local administrations to give approval for the establishment of a
new building if it was necessary. The Commerce Ministry could exercise its power to
limit foreign retail store expansion through laws such as the Trade Competition Law
to make certain of fair trade practice. It could also use the Trade Registration Law to
control any expansion in a saturated area (Arunmas, 2006b). Thai government can
also support local retailers by setting up a database to provide information and
statistics related to retail business, supporting both software and hardware technical
support in order to encourage more efficient management, and offer soft loans for
investing in computer technology and supporting shophouse pay-point services. The
government should also do more to help Thai manufacturers stay competitive by
promoting the country as a base for outsourcing consumer goods (Jitpleecheep, 2006).
Mansri (2006) stated that, in Thailand, there is no specific legislation
governing retail/wholesale businesses, despite the fact that these industries have been
growing rapidly throughout the country. The Ministry of Commerce has implemented
regulations aimed at ensuring there is a fair business competition environment
between retailers or wholesalers and manufacturers or suppliers. Additionally, interim
measures for controlling retail/wholesale business expansions were put in place in the
18
absence of the Retail Business Act. In response to complaints made by local
manufacturers and suppliers in respect of unfair business practices by modern
retailers/wholesalers with greater bargaining power, the Office of Trade Competition
Commission, Ministry of Commerce has implemented business practice guidelines in
the form of regulation B.E. 2549 (2006) (the Regulations). The Regulations were
issued under Section 29 of the Trade Competition Act 1999 (the Act) which prohibits
a business operator from carrying out any act that may constitute an act of unfair
competition and has the effect of obstructing, impeding or restricting the business
operations of others or preventing others from carrying out business or causing a
cessation of business. The Regulations took effect on 11 October 2006 and are
regarded as the first code of conduct for retail/wholesale businesses in Thailand.
The objectives of the Regulations are to provide guidelines for
retailers/wholesalers and manufacturers or suppliers in determining which business
practices may constitute unfair competition under Section 29 of the Act. Notably, the
Regulations do not specify restrictions on retail/wholesale expansions but they
specifically identify business practices that could be considered an act of unfair
competition (Mansri, 2006). The Regulations do not also clearly state what legal
sanctions will apply if any violation occurs. However, the Act provides that any
person who does not comply with Section 29 will be liable to 3 years in jail or to a
fine not exceeding 6 million baht, and double penalties will apply if an offence is
repeated. Additionally, if the offender is a juristic person, its authorized director,
managing partner or the person responsible for business operations of the juristic
person will be subject to the penalty unless it is proved that the offence was
committed without his or her knowledge or consent or he or she took reasonable
action to prevent the offence from occurring (Mansri, 2006).
2.6 Retail Formats and Brands
Uusitalo (2001) stated that the structure and strategies of retailing have been
shaped by the intense competition and struggle over market shares. Grocery retailers
operate in mature markets with slow growth opportunities. Meanwhile, retailers have
been less concerned with genuinely listening to consumers' needs and desires.
Consumers have had to adapt to any changes being made in the retail structure, that
they have changed their shopping behaviour to coincide with the products that retail
stores are providing. For example, consumers now have to travel longer distances, use
19
a car for shopping, buy larger purchases, and be able to store the product in their
homes. Retail firms have established distinctive retail store formats which are
differentiated from each other based on a single dimension or a combination of
several dimensions (Brown, 1992). Two commonly used dimensions are product
range and price level (Burt & Sparks, 1994; 1995). As a consequence of the concern
with retail formats and chain stores, retail brands with managed images have become
prevalent (Davies, 1992; Davies & Brooks, 1989; Walters & Knee, 1989).
In order to be defined as a retail brand, a retailer should fulfill four criteria:
differentiate, be capable of a separate existence, command a premium price, and offer
the customer some psychic value (Davies, 1992). These criteria should be perceived
by the consumers. This study investigates the consumer perspective to retail brands by
analyzing how consumers perceive retail stores and the meanings they associate with
particular stores. The retail brand has an established and recognized status in some
European countries such as France and the UK. However, it is not clear that the retail
brand is a uniform and established concept in other cultural contexts. Retailing is not
only about the physical distribution of goods. In addition to conducting their primary
task, retailers are intermediaries who participate in producing cultural meanings
through which consumers define their sense of self and make sense of the world
around them (Douglas & Isherwood, 1979; McCracken, 1988). Cultural meanings are
manipulated when retailers incorporate meanings into brands in advertising, physical
design of interiors and exteriors, and corporate culture, i.e. the way of doing business,
the way sales staff are dressed and groomed and how they behave. Because of their
ability to evoke changes in consumers' physical and interpretive activities, retailers
with retail brands can be considered change agents in society.
Two forms of retail brands exist: retailer named products and the process
brand (Davies, 1992). The latter refers to the experience, i.e. the service package that
retailers provide. The functions of retail stores may be connected with the useful or
necessary goals that the consumer expects to accomplish when conducting retail
shopping. Store size in terms of floor space, product range, and distance to the store
measured by the mode of transport used and the actual journey time, are arguably the
most important functional features of retail stores (McGoldrick & Thompson, 1992).
20
2.6.1 Family-run stores.
A retail store can attract consumers according to its size. As for family-run
store, they have less attractive size. One important aspect of a family-run store is the
opportunity for personal contacts with the salepersons of these stores. The feeling of
personal attention and care about personal needs and hopes was expressed by several
informants. Consumers can contact store owner and they can ask to order items as
extra service. One possible strength of the family-run store is personal customer
service. Uusitalo (2001) stated that there is a demand for personal customer service
and occasionally the consumers want it and need it.
Family-run stores are attractive because they are predictable. Buyers know
what to expect, what goods are available, where the goods are located, and what the
price level is. Shopping is efficient, quick, and without too many problems. It seems
that consumers have learnt to think about stores according to size. Therefore, different
types of shopping trips are associated with stores of different sizes. Accordingly,
consumers associate different goals and functions with family-run stores versus
superstores offer convenience in terms of ease of shopping. Consumers may prefer
them because of their accessibility and the familiarity and intimacy (Uusitalo, 2001).
2.6.2 Superstores.
Superstores may be associated with the availability of a wide variety of goods.
Some consumers perhaps find superstores convenient since they offer the possibility
to buy all the things they need in the same place. On the other hand, many consumers
feel that there is a lot of walking along and searching because superstores are big and
spacius. This extra walking is often compensated by purchasing large quantities of
goods at one time. These are market-like stores where the number of items is usually
larger. There is rarely a crush or queues, buyers don't have to stand idle for a long
time. They are usually new sites, a lot of space, no collisions against the shelves, good
lighting, easy to move around in, pleasant shopping. The method of shopping is such
that consumer take the goods on trolley to the car. Shopping goes smoothly if
consumer is on his/her own with a child (Uusitalo, 2001).
21
2.7 Consumers’ Perceptions on Product Assortment
The image of a retail outlet is largely admitted to be shaped from the
combination of cognitive and affective factors (Finn & Louviere, 1996; Lindquist,
1974; Zimmer & Golden, 1988). Assortment appears in a good place beside price
level, quality, services and atmosphere. Store image is the first factor that influences
shopping behavior. Monroe and Guiltinan (1975) and Hirschman, Enic, and Roering
(1981) showed the importance and impact of a store's image on some aspects of
consumer behaviour such as selection or patronage of a retail outlet if a retailer
succeed in being associated to the image of having a strong community reputation
which may affect store choice and lower the impact of other store attributes like price.
Bell (1999) found significant relationships between quality and range of products and
stores and consumers intent to patronize a retail center. Price, assortment range,
convenient location, perceived product quality, and customer service are the most
commonly attractive factors of retail stores. Inspite of the weighting of price,
assortment and products quality as most important attributes in retail store choice and
it is not relevant uniformly across buying situations. Their weights can change
radically. Van Kenhove, De Wulf, and Van Waterschoot (1999) demonstrated that
store attributes saliences varied significantly across task definitions. In case of an
urgent purchase, consumers tend to quick service and product availability.
In addition, the importance of retail store choice attributes seems to be store
format dependent. Hansen (2003) found that while high product quality and freshness
of products were ranked by specialty food store consumers at the first two places,
assortment was number three. Since assortment size strictly depends on the available
surface area in the store, a volume retailer will partially or fully meet consumer
expectations, depending on outlet area. As a result, the smaller the outlet area, the
more the retailer will have to choose between either providing a broad offering,
meeting different types of needs with little variety within each type or having a more
limited assortment with many choices within each type of need. In these conditions,
the assortment range becomes a decisive factor of perceived positioning (Amine &
Cadenat, 2003).
Several factors are likely to influence a volume retailer's choice of product
variety (Lancaster, 1991). The first factor is a potential increase of demand following
the offering of a broader variety. Tangible evidence of this is higher store patronage
or an increase in the average shopping cart. McKenna (1989) stated that consumers
22
are living in an era of diversity where they demand more variety and assortment for
all sorts of products, ranging from cars to clothes. Consequently consumer's need for
variety affects the quantitative and qualitative make-up of the assortment.
Koelemeijer and Oppewal (1999) showed that an increase in assortment size produces
more additional purchases than changing/improving store ambience. In their analysis
of retailers' performance drivers, Dhar, Hoch, and Kumar (2001) found out that the
best performing retailers are also those who offer broader assortments.
Amine and Cadenat (2003) stated that the second factor affecting assortment
growth involves the use of variety as a strategic dimension of retail store image. Wide
assortment is viewed as an appealing store image attribute valued by consumers
because they are more likely to find what they want when patronizing a store that
offers more varied assortments (Hoch, Bradlow, & Wansink, 1999). Krishnan,
Koelemeijer, and Rao (2002) developed the notion of assortment consistency, which
is a tacit commitment of a retailer to carry a given set of brands, sizes, colors and
flavors from one period to another, so that a consumer who looks for his preferred
brands will be able to find them for sure at that retail store. The assortment range is
then used as a major differentiating factor in the positioning strategies of retail outlets.
2.8 Customer Services
Retail industry is trying to improve customer service at new competition.
Personalized retail services have become a trend in customer service. Siler (1995)
stated that, when comsumers shop in retail stores, size is of minor consideration,
quality, service, percformance and management are more important. Retailers have to
remind that consumers are truly satisfied with entrance convenience, parking and
internal traffic flow. Superstores offered contomer services by cooperate with small
services and shops like: shoe repair, tailoring, package wrapping and mailing,
cafeterrias, restaurant, bakeries, beauty shops, video tape rentals, pharmacy, delivery
and carryout service. Besides that, superstore service proposition is also based on
price. Low price is king, and the costs of providing staff service have been abandoned
or cut right back. It is hard to get frontline managers and staffs to care about their
customers because of low payment, lack of training, rude customers, a workload filled
with repetitive tasks. Little staff service are the norm that consumers spend time to
find out the product, transport it to the check out, pay and carry out to their vehicles
(Siler, 1995).
23
As an advantage for superstores, they can use high technology. For example,
Carrefour has already installed Symbol's wireless and mobile computer solution to
enhance customer service, productivity and inventory management in more than 50
stores in Hong Kong, Taiwan, Singapore, Malaysia, Indonesia and China; Symbol is
set to deliver the Spectrum24-based solution to Carrefour stores in Thailand and
Korea. Consequently, by providing personalized attention and reducing customers’
wait time, retail stores can experience enchancements in operational efficiency and
brand logyalty. As this greatly improves the customer's overall experience,
organizations quickly reap the benefits (Editors, 1999).
Family-run stores are an extension of the style and customer service approach
of the owner. Usually they exhibit a strong loyalty to their stable of brands, which are
selected to sit alongside each other and appeal to the retailer's core customer. Familyrun stores offer a very personalised service to their customers. They will employ
service techniques such as preferred customer preview evenings, when new season
ranges are first available. Many will mailshot customers individually, pinpointing
specific brands and products. Because they are small (frequently one shop only),
service in the shop is specific to the customer, who is encouraged to enjoy and linger
over the shopping experience (Stern, 2008).
2.9 Social Cue and Store Environment
Hu and Jasper (2006) believed that store environment is a socially constructed
reality composed of both physical and social elements, and that the perception of a
store can be based on both physical and social cues. In a retail environment, social
meaning is usually conveyed through visual merchandising. Visual merchandising
involves a number of highly technical and artistic elements, such as color, texture,
lighting, mannequins, fixture, graphics, signage and so on (Pegler, 1998). So there is a
consensus that social cues in the store environment should include person-to-person
interactions as well as physical elements in the store environment that convey social
meaning. As a result, social cues have effect on examining store image. Several
studies have examined the effects of environmental elements such as color,
background music, and scent on store evaluation and patron behavior (Bellizzi,
Crowley, & Hasty, 1983; Bellizzi & Kite, 1992; Bruner, 1990; Milliman, 1982;
Spangenberg, Crowley, & Henderson, 1996).
24
Mittal and Lassar (1996) stated that the central focus of a store is the point of
sale. The sales transaction that occurs between salesperson and customer is the
defining social moment in a store's existence. The quality of this social encounter is
determined by how well a salesperson can interpret a customer's needs and interact in
a congenial manner. An enhanced interaction between the sales associate and
customer is referred to as personalization of service. Personalization is characterized
by an employee's politeness and courtesy, attempts to get to know customers as
individuals, and engagement in friendly conversation. Mittal and Lassar (1996) found
that personalization significantly influences customer evaluations of service quality;
and that consumers seek familiar, friendly service providers and retail salespeople.
Forman and Sriram (1991) suggested that lonely consumers in particular, are sensitive
to the depersonalization of the retail environment and are less likely to experience a
satisfactory shopping experience in a depersonalized service environment.
A market survey recently showed that 26 percent of consumers are often
persuaded by window displays to make a purchase; 15 percent of consumers use
seasonal product displays (e.g. Christmas, Valentine's Day) to reach purchase
decisions (Caine, 2003). Much as billboards of cigarettes and alcohol use social cues
to create a perception of social rewards that the consumer will feel desired enough to
step into a store and make a purchase (Bell & Ternus, 2002; Pegler, 1998). Consumer
affect toward a store is mainly described by two dimensions: pleasure-displeasure (the
degree to which the person feels good in the environment) and arousal-nonarousal
(the extent to which a person feels excited or stimulated) (Baker, Levy, & Grewal,
1992). The holistic view defines store image as the total impression a store makes on
the minds of its customers. Typically, a semantic differential scale such as good/bad,
favorable/unfavorable, or like/dislike is used (Yoo, Park, & Maclnnis, 1998).
25
2.10 Concepts and Theories
2.10.1 Perception.
Solomon and Stuart (2000) stated that Perception is the process by which
people select, organize, and interpret information from the outside world. People
receive information in the form of sensations by sensory receptors; eyes, ears, nose,
mouth and fingers. People interpret the sensations they receive by their past
experiences. The perception process is very important for marketers because it is
difficult even to make consumers notice their ads. Although consumers notice it, there
is no guarantee that they will perceive as marketers want. Therefore, marketers need
to care the whole process including exposure, perceptual selection and interpretation.
2.10.2 Marketing influences on consumer behavior.
Paul, James, and Donnelly (2001) stated that each element of marketing mix
can affect consumers in various ways as following:
1) Product Influences
The attributes of a product such as brand name, quality, complexity, packaging
and labeling information can affluence consumer behavior.
2) Price Influences
The price of product and services influences consumer behaviors. Higher
prices may not always discourage purchasing because consumers believe that the
products or services are higher quality. However, value-conscious consumers may
buy products more on the basis of price than other attributes.
3) Promotion Influences
Advertising, sales promotions, salespeople, and publicity can influence what
consumers think about products.
4) Place Influences
The marketer’s strategy for distributing products can influence consumers e.g.
convenient to buy, products sold in exclusive outlets offering products on Internet or
in catalogs.
26
2.10.3 Behaviors of Thai consumers.
Thais go shopping at malls, superstores and department stores as a form of
relaxation during their free times. Those stores are particularly crowded at the
beginning of the month just after salaries have been paid. Feeny, Vongpatanasin, and
Soonsatham (1996) found that Thai consumer behavior has also been dramatically
changed. Many now choose to shop in modern air-conditioned retail outlets with
friendly staffs and a wide variety of reasonably priced products that wouldn’t be out
of place in any developed nation.
2.10.4 Market dominance.
Depending on different kinds of industries, market dominance concepts
influence much or less on consumers’ perceptions to the particular industry.
Consumers suspect that they are offered the best price, quality and service if there is
market dominance. Mansri (2006) stated that an entrepreneur was said to have
“market dominance” once they achieved a market share of 33.33% or more and total
sales revenue greater than Baht 1,000 million. For the retail-wholesale industry:
•
An entrepreneur will be considered to have market dominance if he has a
market share of 20% or more and total sales revenue greater than Baht
27,000 million.
•
If three entrepreneurs have an aggregate market share of 33.33% or more
and total sales revenue greater than Baht 45,000 million, they will be
considered to have “market dominance”. However, if the market shares of
each entrepreneur is 10% or less; they will not be considered to have
“market dominance”.
2.10.5 Decision making process.
Decision making, particularly, on purchasing is important for marketer since
marketing strategy nowadays aims to satisfy customers. Marketers try to find out what
factors influence the decision making process of their target groups, then they can use
the factors to be benefits on their marketing plan. In general, the starting point of
decision making process is the recognition of a need. Need recognition may be
triggered by individual factors such as running out of or becoming discontented with
goods or services or may be prompted by external stimuli such as marketing activities.
27
The model proposes that if the need is sufficiently intense, person will search for
information on how to satisfy the need. Search behavior, the second stage in the
decision process, involves drawing on information stored in memory (internal search)
and, if necessary, gathering additional information from external source (external
search). As indicated in the left hand part of the model, a consumer’s information
processing mechanisms are called into play at this stage, particularly in relation to
external search activities during which an individual tries to make sense of the
incoming information within a personal frame of reference. The next stage of the
decision model is the evaluation of alternatives. It is a t this stage, that a consumer’s
beliefs about and attitudes towards products are formed or changed as an individual
identifies relevant evaluative criteria by which to compare various offerings in the
marketplace and assesses which best meet his or her requirements. The purchase and
the outcomes complete the decision process. Situational factors can influence
consumers at the point of purchases and there has been much interest in recent years
in how retail environments and point-of-scale material can be manipulated to
influence consumer behavior. Finally, a consumer does not cease to think about a
purchase once the transaction is complete. Rather, the individual continues to assess
whether the right choice was made and his or her evaluations of whether the product
meets expectations form the basis of satisfaction or dissatisfaction (Warner, 2002b).
28
Chapter 3
Methodology
This research is quantitatively designed using a survey questionnaire using
convenience sampling to collect primary data from customers who shopped in
business districts and urban areas in Bangkok.
3.1 Scope of Study
The study focused on residents in Bangkok, both in downtown and suburb
districts during March - April 2008. The survey questionnaires were mainly
distributed near around Big C Saphankwai, Chuktuchuk Weekend Market, The Mall
Bangkapi, Tesco Lotus Wang Sawang and Carrefour Rangsit.
3.2 Population and Sample Size
Population for this research is residents of Bangkok, which has population
figure of 5,726,203 in 2001 (Alpha Research Co. Ltd., 2003). Since the size of the
population is large, sample size was calculated using Yamane formula (Yamane,
1967). The significant level is accepted at 95 percent.
n = N / 1+N(e)2
Note: n = Sample size
N = Amount of population (5,726,203)
e = Significant level (0.05 or 0.01)
According to the equation, the sample size can be calculated as follows;
n = 5,726,203 / 1+5,726,203 (0.05)2
n = 399.9721 or 400 samples
Therefore, the researcher set up sample size of 400 samples for the
convenience sampling. This study is quantitative design and data were analyzed by
descriptive and inferential statistics methods, and one-way ANOVA was used to test
the null hypothesis.
29
3.3 Data Collecting Method
Secondary source data were collected from text books, past researches,
newspapers, journals, dictionaries, encyclopedias, and world-wide-web pages.
Primary source data were collected from questionnaire survey. The questionnaire for
this study was developed based upon concepts, theories and past research information.
Then, it was translated into Thai language. The questionnaire consists of 3 parts
including part 1: questions about demographic data of samples, part 2: questions
about shopping behaviors, part 3: questions about consumers’ attitude, and part 4;
asking about consumer satisfaction on marketing, business, economic and social
factors comparing between superstores and family-run stores which were classified
into 5 levels (1, 2, 3, 4, 5) following Likert’s scale interval as in Figure 2.1.
This study used Likert’s scale (Davis, 2005) to evaluate the respondents’
satisfaction and agreement level. The scale is highly reliable when it comes to the
ordering of people with regard to a particular attitude.
Formula:
N-1/N
5-1/5 = 0.80
4.21
5.0
Level 5
3.41
4.20
Level 4
2.61
3.40
Level 3
1.81
2.60
Level 2
1.0
1.80
Level 1
Figure 3.1 Table of Likert’s Scale
30
3.4 Research Process
Document-based Research
Literature Reviews
Step 1
Distribution of questionnaires
to find out primary Sources
Step 2
Analysis on data collected from
questionnaire
Step 3
Conclusions and Recommendations
Figure 3.2 Research Process
There are 3 steps in this research process as the above figure illustrates. The
study program started with literature reviews. The second step is distributing survey
questionnaires to sample groups to collect primary data, and analyzing data collected
from questionnaires. Third step are conclusions and recommendations.
31
Chapter 4
Research Analysis and Results
This chapter presents the analysis and the results from survey questionnaire
using SPSS program. The analysis process is presented as:
•
Descriptive frequency statistics was used to describe and analyze all part
of questionnaire.
•
One-way ANOVA was applied in SPSS program to test hypotheses.
Symbols of data analysis:
X
= Mean
SD = Standard déviation
T
= t-Distribution
Sig. = Data valuable significance level of 0.005
4.1 Demographic Factors
Demographic factors were divided into 7 categories which are gender, age,
education, occupation, monthly income, marital status and location. Demographic
data of the respondents obtained from questionnaires was analyzed and presented in
the following tables.
4.1.1 Gender.
Table 4.1 Demographic Factors – Gender
Gender
Female
Male
Total
Frequency
216
184
400
Percent
54
46
100
The results from Table 4.1 show that majority of respondents in this group are
female (216 respondents) accounted for 54% of the total respondents. The rest are 184
male respondents accounted for 46% of the total respondents.
32
4.1.2 Age.
Table 4.2 Demographic Factors – Age
Age
Under 20 years
20 – 25 years
26 -30 years
31 -40 years
41 -50 years
51 -60 years
Above 60 years
Total
Frequency
17
115
126
88
40
13
1
400
Percent
4
29
32
22
10
3
0.3
100
Age was divided into 7 ranges which are under 20 years, 20 – 25 years, 26 –
30 years, 31 – 40 years, 41 – 50 years, 51 – 60 years and above 60 years. The results
of Table 4.2 reveal that the majority of the respondent is age between 26 – 30 years
(32%) follow by 20 – 25 years (29%), 31 – 40 years (22%), 41 – 50 years (10%),
under 20 years (4%), 51 – 60 years (3%) and above 60 years (0.3%) respectively.
4.1.3 Educational background.
Table 4.3 Demographic Factors – Educational Background
Education
Bachelor Degree
Doctor Degree
High School
Master Degree
Other
Under High School
Vocational School
Total
Frequency
226
10
49
61
4
22
28
400
Percent
57
3
12
15
1
5
7
100
Education background was divided into 7 ranges which are under high school,
high school, vocational school, bachelor degree, master degree, doctorate degree and
other. The descriptive analysis results from Table 4.3 indicate that majority of the
respondent holds a bachelor degree (57%), follows by master degree (15%), high
school (12%), vocational school (7%), under high school (5%), doctor degree (2%)
and other (1%) respectively.
33
4.1.4 Occupation.
Table 4.4 Demographic Factors – Occupation
Occupation
Employee
Entrepreneur
Government Official
Housewife
Other
Professional
Student
Total
Frequency
239
29
11
26
41
2
52
400
Percent
60
7
3
6
10
1
13
100
Occupation of the respondents was divided into 7 categories which are
student, housewife, professional, government official, employee, entrepreneur and
other. The occupation analysis Table 4.4 describes that the majority of respondent is
employee (60%), followed by student (13%), other (10%), entrepreneur (7%),
housewife (6%), government official (3%) and professional (1%) respectively.
4.1.5 Monthly income.
Table 4.5 Demographic Factors - Monthly Income
Monthly Income
Less than Bt 10,000
Bt 10,001 - Bt 15,000
Bt 15,001 - Bt 20,000
Bt 20,001 - Bt 30,000
Bt 30,001 - Bt 50,000
More than Bt 50,000
Total
Frequency
116
84
35
85
55
25
400
Percent
29
21
9
21
14
6
100
Monthly income level was divided into 6 ranges which are less than Bt
10,000, Bt 10,001 – Bt 15,000, Bt 15,001 – Bt 20,000, Bt 20,001 – Bt 30,000, Bt
30,001 – Bt 50,000 and more than Bt 50,000. The results from Table 4.5 show that the
majority of respondent has income less than Bt 10,000 (29%), followed by Bt 20,001
– Bt 30,000 (21%), Bt 10,001 – Bt 15,000 (21%), Bt 30,001 – Bt 50,000 (14%), Bt
15,001 – Bt 20,000 (9%) and more than Bt 50,000 (6%) respectively.
34
4.1.6 Marital status.
Table 4.6 Demographic Factors - Marital Status
Marital Status
Frequency
4
120
276
400
Divorce
Married
Single
Total
Percent
1
30
69
100
Marital status was divided into 3 statuses which are single, married, and
divorce. The results from Table 4.6 show that the majority of respondent is single
(69%), followed by married (30%) and divorce (1%) respectively.
4.1.7 Location.
Table 4.7 Demographic Factors – Location
Location
Central Part
Eastern Part
Northern Part
Western Part
Total
Frequency
159
56
100
85
400
Percent
40
14
25
21
100
Location was divided into 4 parts which are central part (Ladprao,
Ratchadapisek, Saphankwai, Sukhunvit and Silom), eastern part (Ramindra,
Sukhapiban, Bangkapi, Hua Mark and Ekkamai), western part (Wang Sawang,
Tiwanon, Dao Kanong, Phethkasem and Rama ll) and northern part (Chaengwattana,
Rangsit, Bangk Khaen, Don Muang and Laksi). The results from Table 4.7 reveal that
the majority of the respondent stays in central part (40%), followed by northern part
(25%), western part (21%) and eastern part (14%) respectively.
35
4.2 Shopping Behavior
Shopping behavior characteristics of respondents obtained from questionnaires
were analyzed and presented in the following details. There are four behavioral
questions in this research.
4.2.1 Question 1: When do you go shopping?
Table 4.8 Shopping Reasons
Frequency
Percent
88
4
1
2
4
1
1
100
Reason Three
Percent
352*
17
3
7
16
2
3
400
Reason Two
Frequency
When I need to buy something
When I have extra money
While I am on the way
When I accompany friends
When I am free
When I feel lonely
Other
Total
Percent
When do you go shopping?
Frequency
Reason One
0
0
0
0
33
84*
45
30
3
3
198
17
42
23
15
1.5
1.5
100
4
8
29
49*
10
4
8
29
49
10
0
0
100
100
Note: * Maximum Point
In this question, there are 7 nominal variables that respondents can choose as
shopping reasons. They are: when the respondent needs to buy something, when the
respondent has extra money, while the respondent is on the way, when the respondent
accompanies friends, when the respondent is free, when the respondent feels lonely
and other. In this case, respondents were allowed to choose more than one shopping
reasons and the research analysis counted on maximum 3 reasons. There are 400
respondents expressing one shopping reason. The finding from Table 4.8 reveals that,
as reason one, majority of respondent shops when they need to buy something (88%),
followed by when they have extra money (4%), when they are free (4%), when they
accompany friends (2%), while they are on the way (1%), other (1%), and when they
feel lonely (1%) respectively.
There are 198 respondents expressing two shopping reasons. The finding from
Table 4.9 reveals that, as reason two, majority of respondent shops while they are on
the way (42%), followed by when they accompany friends (23%), when they have
36
extra money (17%), when they are free (15%), when they feel lonely (1.5%), and
other (1.5%) respectively.
There are 100 respondents expressing three shopping reasons. The finding
from Table 4.10 reveals that, as reason three, majority of respondent shops when they
are free (49%), followed by when they accompany friends (29%), when they feel
lonely (10%), while they are on the way (8%), and when they have extra money (4%)
respectively.
The results from Table 4.8 found that respondents will shop when they need to
buy something, while they are on the way and when they are free.
4.2.2 Question 2: How often do you go shopping within a month?
Table 4.9 Frequency of Shopping Times
How often do you go shopping
Within a month?
None
1 - 3 times
4 - 6 times
More than 6 times
Total
Family-run Store
Frequency
Percent
66
17
168*
42
67
17
99
24
400
100
Superstore
Frequency
Percent
16
4
298*
75
65
16
21
5
400
100
In this question, there are 4 variables which are none, 1 - 3 times, 4 -.6 times,
and more than 6 times. In this case, respondents were asked to choose both family-run
store side and superstore side. The results from Table 4.9 reveal that the majority of
respondents shops at family-run store 1 – 3 times within a month (42%), followed by
more than 6 times (24 %), 4 – 6 times (17%), and do not shop at all (17%)
respectively. The majority of respondents shops at superstore 1 – 3 times within a
month (75%), followed by more than 4 - 6 times 16%, more than 6 times (5%), and
do not shop at all (4% ) respectively.
The results from Table 4.9 found that respondents go shopping maximum 1-3
times per month at both family-run store and superstores. Therefore, respondents go
shopping at family-run stores as much as at superstores.
37
4.2.3 Question 3: How long does a shopping time last?
Table 4.10 Frequency of Spending Shopping Time
How long does a shopping time
last?
None
Less than 30 minutes
30 minutes - one hour
More than one hour
Total
Family-run Store
Frequency
Percent
56
14
295*
74
32
8
17
4
400
100
Superstores
Frequency
Percent
6
2
36
9
185*
46
173
43
400
100
In this question, there are 4 variables which are none, less than 30 minutes, 30
minutes – one hour and more than one hour. In this case, respondents were asked to
choose both family-run store side and superstore side. The results from Table 4.12
reveal that the majority of respondent spends less than 30 minutes per shopping at
family-run store (74%), followed by do not spend any time (14%), spend 30 minutes –
one hour (8%), spend more than one hour (4 %) respectively. The majority of
respondent spends 30 minutes – one hour per shopping at superstore (46%), followed
by more than one hour (43), less than 30 minutes (9%), and do not spend any time
(2%) respectively.
The results from Table 4.10 found that majority of respondents spend less than
30 minutes per shopping at family-run store, but they spend 30 minutes – one hour at
superstores. Therefore, respondents spend more time at superstores than family-run
stores although frequencies of shopping times are the same.
4.2.4 Question 4: How much money do you generally spend per a
shopping?
Table 4.11 Spending Amounts for a Shopping
How much money do you
generally spend per a shopping?
None
Less than Bt 500
Bt 500 - Bt 1000
Bt 1001 - Bt 3000
More than Bt 3000
Total
Family-run Store
Frequency
Percent
49
12
307*
77
34
8
9
2
1
1
400
38
100
Superstore
Frequency
Percent
2
50
226*
102
20
400
1
12
57
25
5
100
In this question, there are 5 variables which are none, less than Bt 500, Bt 500
– Bt 1000, Bt 1001 – Bt 3000 and more than Bt 3000. In this case, respondents were
asked for to choose both family-run store side and superstore side. The results from
table 4.13 reveal that the majority of respondent spend less than Bt 500 per shopping
at family-run stores (77%), followed by Bt 500 – Bt 1000 (8%), Bt 1001 – Bt 3000
(2%), more than Bt 3000 (1%), and nothing (12%) respectively. The majority of
respondent spends Bt 500 – Bt 1000 per shopping at superstore (57%), followed by Bt
1001 – Bt 3000 (25%), less than Bt 500 (12%), more than Bt 3000 (5%), and nothing
(1%) respectively.
The results from Table 4.11 found that majority of respondents spend less than
Bt 500 per shopping at family-run store while they spend Bt 500 – Bt 1000 at
superstores. Therefore, respondents spend more money at superstores than family-run
stores.
4.3 Attitudinal Statements
There are 12 attitudinal statements:
•
Statement 1 I enjoy going shopping
•
Statement 2 I know the difference between superstores and family-run
stores.
•
Statement 3 Retail stores improve consumers’ life style
•
Statement 4 Superstores and family-run stores are competing with each
other
•
Statement 5 Superstores have negative effects to family-run stores
•
Statement 6 I care that family-run stores are closed down because of
superstores
•
Statement 7 I know that Thai government is restricting on superstore
expansion
•
Statement 8 Government should restrict more on superstore expansion
•
Statement 9 Government should allow free and fair competition
•
Statement 10 Government should support family-run stores
•
Statement 11 We don’t need superstores because family-run stores are
enough
•
Statement 12 Superstores are essential for consumers in Bangkok
39
The researcher used Likert’s Scale to analyze and the interpretation of
attitudinal level is as in Table 4.14.
Table 4.12 Interpretation of Attitudinal Levels
Result
Interpretation of
Attitudinal Level
4.21 – 5.00
3.41 – 4.20
2.61 – 3.40
1.81 – 2.60
1.00 – 1.80
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
Table 4.13 Interpretation of Consumer Attitudes towards Retail Stores
Attitudinal Statements
X
SD
Level
I enjoy going shopping
3.83
0.721
Agree
I know the difference between superstores and family-run stores
4.06
0.629
Agree
Retail stores improve consumers' life style
3.68
0.723
Agree
Superstores and family-run stores are competing each other
3.63
1.037
Agree
Superstores have negative effects to family-run stores
4.20
0.872
Agree
I care that family-run stores are closed down because of superstores
3.86
1.032
Agree
I know that government is restricting on superstore expansion
3.58
0.974
Agree
Government should restrict more on superstore expansion
3.92
0.943
Agree
Government should allow free and fair competition
3.24
1.140
Neutral
Government should support family-run stores
3.99
0.851
Agree
We don't need superstores because family-run stores are enough
2.97
0.967
Neutral
Superstores are essential for consumers in Bangkok
3.77
0.773
Agree
Respondents rated on weighting levels which are strongly agree, agree,
neutral, disagree and strongly disagree for each statements. According to the collected
data, Frequency count for each attitudinal level and Mean ( X ) were analyzed by
using SPSS program. The statistical analysis results from Table 4.15 present that the
respondents agreed with the statements: superstores have negative effects to familyrun stores ( X = 4.20), they know the difference between superstores and family-run
stores ( X = 4.06), they care that family-run stores are closed down because of
superstores ( X = 3.86), they enjoy going shopping ( X = 3.83), retail stores improve
consumers’ life style ( X = 3.68), superstores and family-run stores are competing
each other ( X = 3.63), government should support family-run stores ( X = 3.99),
government should restrict more on superstore expansion ( X = 3.92), superstores are
essential for consumers in Bangkok ( X = 3.77) and they know that Thai government
40
is restricting on superstore expansion ( X = 3.58). Respondents neutrally agreed the
statements: government should allow free and fair competition ( X = 3.24) and they
don’t need superstores because family-run stores are enough ( X = 2.97).
4.4 Marketing and Business Factors
Consumer satisfaction level on marketing and business factors of superstores
and family-run stores are analyzed in this part. The researcher used Likert’s Scale to
analyze this case and the interpretation of satisfaction level is as in Table 4.14.
Table 4.14 Interpretation of Satisfaction Levels
Interpretation of
Satisfaction Level
Very Satisfied
Satisfied
Neutral
Dissatisfied
Very Dissatisfied
Result
4.21 - 5.00
3.41 - 4.20
2.61 - 3.40
1.81 - 2.60
1.00 - 1.80
Respondents rated on five satisfaction levels - very satisfied, satisfied, neutral,
dissatisfied, and very dissatisfaction for marketing and business factors. According to
the collected data, Frequency count for each satisfaction level, Mean ( X ) and
Standard Deviation (SD) were analyzed by SPSS program. After that, those Means
( X ) for each factor were interpreted as related level.
41
4.4.1 Product and price.
Very
Satisfied
Satisfied
Neutral
Dissatisfied
Very
Dissatisfied
Table 4.15 Consumer Satisfaction Levels on Product and Price
X
Variety of products – SS
210
146
38
6
0
4.4
0.722
Variety of products – FS
18
85
211
71
8
3.09
0.810
Very
Satisfied
Neutral
Quality of products – SS
85
210
89
8
5
3.91
0.791
Satisfied
Quality of products – FS
18
125
219
30
4
3.31
0.720
Neutral
Fresh and healthy food – SS
95
188
88
21
6
3.87
0.889
Satisfied
Fresh and healthy food – FS
22
104
206
56
8
3.19
0.820
Neutral
Traditional & handmade products – SS
27
106
191
55
21
3.16
0.927
Neutral
Traditional & handmade products – FS
26
102
185
59
13
3.18
0.891
Neutral
Reasonable Price – SS
71
207
104
16
2
3.82
0.783
Satisfied
Reasonable Price – FS
17
122
202
36
11
3.25
2.216
Neutral
Stable Price – SS
43
171
149
31
3
3.55
0.817
Satisfied
Stable Price – FS
31
110
197
45
8
3.28
0.847
Neutral
Marketing Factors
SD
Level
Consumer Satisfaction on Product
Consumer Satisfaction on Price
Note: SS refers to Superstore
FS refers to Family-run Store
The statistical analysis results from Table 4.15 state that respondents were
very satisfied ( X = 4.40) on superstore and neutral ( X = 3.09) on family-run store for
variety of products, satisfied ( X = 3.91) on superstore and neutral ( X = 3.31) on
family-run store for quality of products, satisfied ( X = 3.87) on superstore and neutral
( X = 3.19) on family-run store for fresh and healthy food, neutral ( X = 3.16) on
superstore and neutral ( X = 3.18) on family-run store for traditional & handmade
products, satisfied ( X = 3.82) on superstore and neutral ( X = 3.25) on family-run
stores for reasonable price, and satisfied ( X = 3.55) on superstore and neutral ( X =
3.28) on family-run store for stable price.
It could be summarized that respondents were very satisfied with more
product variety, and satisfied with quality of products, freshness and healthy food,
traditional & handmade products in superstores than those products in family run
stores. Regarding pricing, the customers felt that prices in superstores are more
reasonable and more stable than in family-run stores.
42
4.4.2 Place.
Very
Satisfied
Satisfied
Neutral
Dissatisfied
Very
Dissatisfied
Table 4.16 Consumer Satisfaction Levels on Place
X
Easily reachable location – SS
94
186
94
17
4
3.88
0.853
Satisfied
Easily reachable location – FS
102
154
106
32
1
3.82
0.918
Satisfied
Car parking space and service – SS
143
176
67
12
2
4.12
0.824
Satisfied
Car parking space and service – FS
15
70
161
120
30
2.8
0.946
Neutral
Cleanness of the store – SS
100
216
73
10
1
4.01
0.746
Satisfied
Cleanness of the store – FS
22
96
197
72
9
3.13
0.850
Neutral
103
208
76
13
0
4
0.761
Satisfied
11
78
197
98
12
2.94
0.822
Neutral
Product placement – SS
114
197
66
22
1
4
0.833
Satisfied
Product placement – FS
4
101
193
90
7
3.01
0.772
Neutral
Toilet Service – SS
109
185
76
23
7
3.92
0.919
Satisfied
Toilet Service – FS
5
49
130
126
84
2.4
0.997
Dissatisfied
Marketing Factors
SD
Level
Consumer Satisfaction on Place
Quality of facility & equipment –
SS
Quality of facility & equipment –
FS
satisfied ( X = 3.88) on superstore and satisfied ( X = 3.82) on family-run store for
easily reachable location, satisfied ( X = 4.12) on superstore and neutral ( X = 2.80)
on family-run store for car parking space & service, satisfied ( X = 4.01) on
superstore and neutral ( X = 3.13) on family-run store for cleanness of the store,
satisfied ( X = 4.00) on superstore and neutral ( X = 2.94) on family-run store for
quality of facility & equipment, satisfied ( X = 4.00) on superstore and neutral ( X =
3.01) on family-run store for product placement, and satisfied ( X = 3.92) on
superstore and dissatisfied on family-run store for toilet service.
It could be summarized that respondents were satisfied more on easily
reachable locations, parking space and services, cleanness of the store, quality of
facility & equipment product placement, and toilet service in superstores than in
family-run stores.
43
4.4.3 Promotion.
Neutral
Dissatisfied
Very
Dissatisfied
X
Offering discount – SS
101
206
83
10
0
4
0.749
Satisfied
Offering discount – FS
4
73
214
77
26
2.88
0.820
Neutral
Occasional gift for consumer – SS
71
180
133
14
1
3.77
0.788
Satisfied
Occasional gift for consumer – FS
5
65
192
108
21
2.81
0.821
Neutral
Advertisement – SS
72
187
119
21
1
3.77
0.812
Satisfied
Advertisement – FS
10
66
191
84
39
2.81
0.923
Neutral
Marketing Factors
Very
Satisfied
Satisfied
Table 4.17 Consumer Satisfaction Levels on Promotion
SD
Level
Consumer Satisfaction on Promotion
satisfied with discount offering ( X = 4.00) in superstore and neutral ( X = 2.88) in
family-run store, satisfied with occasional gift offering ( X = 3.77) in superstore and
neutral ( X = 2.81) in family-run store, satisfied with advertisement ( X = 3.77) in
superstore and neutral ( X = 2.81) in family-run store.
It could be summarized that respondents were more satisfied on promotion
factors, offering discount, occasional gift for consumer and advertisement in
superstores than in family-run stores.
44
4.4.4 Business factors.
Very
Satisfied
Satisfied
Neutral
Dissatisfied
Very
Dissatisfied
Table 4.18 Consumer Satisfaction Levels on Business Factors
X
Information service – SS
92
215
84
7
2
3.97
0.745
Satisfied
Information service – FS
11
64
180
98
43
2.75
0.946
Neutral
Sales service – SS
69
206
108
16
1
3.82
0.770
Satisfied
Sales service – FS
16
87
203
67
23
3.02
0.886
Neutral
Problem solving ability – SS
44
154
164
27
9
3.49
0.863
Satisfied
Problem solving ability – FS
11
59
205
82
35
2.82
0.893
Neutral
Management ability – SS
55
216
116
12
1
3.78
0.723
Satisfied
Management ability – FS
2
70
219
77
25
2.87
0.795
Neutral
Business Factors
SD
Level
satisfied ( X = 3.97) on superstore and neutral ( X = 2.75) on family-run store for
information service, satisfied ( X = 3.82) on superstore and neutral ( X = 3.02) on
family-run store for sales service, satisfied ( X = 3.49) on superstore and neutral ( X =
2.82) on family-run store for problem solving ability, and satisfied ( X = 3.78) on
superstore and neutral ( X = 2.87) on family-run store for management ability.
It could be summarized that respondents were more satisfied on information
service, sales service, problem solving ability and management ability in superstores
than in family-run stores.
45
4.5 Economic and Social Factors
Respondents rated on five perception weighting levels by Likert’s scales
which are very high, high, rather high, low and very low for economic and social
factors. According to the collected data, frequency count for each satisfaction level,
Mean ( X ) and Standard Deviation (SD) were analyzed by SPSS program.
Table 4.19 Interpretation of Perception Weighting Levels
Result
4.21 – 5.00
3.41 – 4.20
2.61 – 3.40
1.81 – 2.60
1.00 – 1.80
Interpretation of Perception Weighting Level
Very High
High
Rather High
Normal
Low
4.5.1 Economic factors.
Very High
High
Rather High
Normal
Low
Table 4.20 Consumer Perception on Economic Factors
X
Benefiting local economy – SS
60
153
136
38
13
3.52
0.968
High
Benefiting local economy – FS
34
138
158
56
8
3.34
0.897
Rather High
Benefiting consumers – SS
72
198
111
16
3
3.8
0.804
High
Benefiting consumers – FS
37
151
156
45
7
3.42
0.875
High
Creating employment – SS
106
191
77
20
5
3.93
0.877
High
Creating employment – FS
13
63
174
95
50
2.73
0.984
Rather High
Giving tax to government – SS
64
203
108
25
0
3.76
0.791
High
Giving tax to government – FS
22
70
198
91
15
2.98
0.884
Rather High
63
156
128
47
5
3.56
0.935
High
15
90
187
76
26
2.98
0.916
Rather High
Economic Factors
Follow government regulation –
SS
Follow government regulation –
FS
46
SD
Level
The statistical analysis results from Table 4.20 state that respondents rated
high ( X = 3.52) on superstore and rather high ( X = 3.34) on family-run store for
benefiting to local economy, high ( X = 3.80) on superstore and also high ( X = 3.42)
on family-run store for benefiting to local consumers, high ( X = 3.93) on superstores\
and neutral ( X = 2.73) on family-run store for creating employment, high ( X = 3.76)
on superstore and rather high ( X = 2.98) on family-run store for paying tax to
government, and high ( X = 3.56) on superstore and rather high ( X = 2.98) on familyrun stores for follow government rules and regulations.
It could be summarized that respondents perceived that superstores created
more benefit economically than family-run stores. They perceived that the superstores
benefit the local economy and consumers, creating employment, paying more tax to
the government, and those superstores were more disciplined than family-run stores in
following the government rules and regulations.
4.5.2 Social factors.
Very High
High
Rather High
Normal
Low
Table 4.21 Consumer Perception on Social Factors
X
Social activities – SS
53
177
131
29
10
3.58
0.897
High
Social activities – FS
11
61
180
92
46
2.74
0.955
Rather High
Humanitarian aid – SS
44
158
138
50
9
3.45
0.925
High
Humanitarian aid – FS
9
62
180
103
42
2.73
0.928
Rather High
Care about local culture – SS
37
127
169
53
14
3.3
0.934
Rather High
Care about local culture – FS
23
83
172
91
28
2.95
0.976
Rather High
Care about labor right – SS
44
134
177
40
5
3.43
0.861
High
Care about labor right – FS
13
58
175
109
39
2.74
0.941
Rather High
Environmental safety – SS
44
122
150
64
14
3.3
0.987
Rather High
Environmental safety – FS
15
51
179
109
39
2.73
0.941
Rather High
Social Factors
SD
Level
The statistical analysis results from Table 4.21 state that respondents rated as
high ( X = 3.58) on superstore and rather high ( X = 2.74) on family-run store for their
contributions to social activities, high ( X = 3.45) on superstore and rather high ( X =
47
2.73) on family-run store for contribution to humanitarian aid, high ( X = 3.30) on
superstore and neutral ( X = 2.95) on family-run store for care about local culture,
high ( X = 3.43) on superstore and rather high ( X = 2.74) on family-run store for Care
about labor right, and high ( X = 3.30) on superstore and rather high ( X = 2.73) on
family-run store for care about environmental safety. In this analysis, researcher
found that respondents rated as high level on superstore and rather high level for
family-run store for all social factors.
It could be summarized that respondents were more satisfied with superstores
than family-run stores in regard to contributions to the society. The groups were
satisfied with social activities done by superstores including humanitarian aid;
preserving local culture, caring about labor rights, and in social responsibility.
48
4.6 Testing Hypotheses
This study employed one-way ANOVA to test hypotheses using SPSS
program. According to significance levels from one-way ANOVA test, the results
were accepted or rejected at significance level 0.05.
4.6.1 Hypothesis 1: Relationship between demographic and marketing
factors.
Table 4.22 Relationship between Demographic Factors and Product
Significant Level
Stores
Gender
Age
Education
Occupation
Income
Marital
Location
Marketing Factor
Variety of products
SS
FS
0.245
0.345
0.196
0.437
0.000**
0.226
0.034*
0.003*
0.114
0.051
0.132
0.262
0.335
0.512
Quality of products
SS
FS
0.587
0.246
0.037*
0.607
0.168
0.007*
0.537
0.282
0.136
0.090
0.468
0.488
0.986
0.950
Fresh & healthy food
SS
FS
0.176
0.924
0.152
0.661
0.012*
0.265
0.035*
0.028*
0.146
0.247
0.959
0.902
0.504
0.680
Traditional products
SS
FS
0.622
0.615
0.008*
0.150
0.022*
0.002*
0.211
0.293
0.001*
0.073
0.719
0.033*
0.220
0.101
(Product)
* Significant at 0.05 level
** Significant at 0.00 level
49
The results from Table 4.22 reveal that consumers with different education
background and occupation have different perceptions on variety of products in
superstores (Sig. at 0.000 and 0.034 respectively). In the mean time, consumers with
different occupation have different perceptions on variety of products in family-run
stores (Sig. at 0.003). Therefore, consumers with different demographic background
have different perceptions on variety of products between superstores and family-run
stores.
The results from Table 4.22 reveal that consumers with different age have
different perceptions on quality of products in superstores (Sig. at 0.037). In the mean
times, consumers with different education background have different perceptions on
quality of products in family-run stores (Sig. at 0.007). Therefore, consumers with
different demographic background have different perceptions on quality of products
between superstores and family-run stores.
background and occupation have different perceptions on fresh and healthy food in
different occupation have different perceptions on fresh and healthy food in familyrun stores (Sig. at 0.028). Therefore, consumers with different demographic
background have different perceptions on fresh and healthy food between superstores
and family-run stores.
The results from Table 4.22 reveal that consumers with different age,
education background and income have different perceptions on traditional products
in superstores (Sig. at 0.008, 0.022 and 0.001 respectively). Consumers with different
education background and marital status have different perceptions on traditional
products in family-run stores (Sig. at 0.002 and 0.033 respectively).
Therefore,
consumers with different demographic background have different perceptions on
traditional products between superstores and family-run stores.
According to the results from Table 4.22, consumers with different
demographic background have different perceptions on product between superstores
and family-run stores.
50
Table 4.23 Relationship between Demographic Factors and Price
Occupation
Income
Marital
Location
Stable price
Education
Reasonable price
SS
FS
0.161
0.293
0.000**
0.635
0.074
0.571
0.417
0.930
0.670
0.807
0.855
0.332
0.992
0.272
SS
FS
0.829
0.731
0.103
0.217
0.141
0.095
0.374
0.248
0.006*
0.049*
0.447
0.059
0.248
0.840
Age
(Price)
Gender
Marketing Factor
Stores
Significant Level
The results from Table 4.23 reveal that consumers with different age have
different perceptions on reasonable price only in superstores (Sig. at 0.000).
Therefore, consumers with different demographic background have different
perceptions on reasonable price between superstores and family-run stores. The
results from Table 4.23 also reveal that consumers with different income level have
different perceptions on stable price in superstores (Sig. at 0.006) and of family-run
stores (Sig. at 0.043). Therefore, consumers with different demographic background
have different perceptions on stable price between superstores and family-run stores.
demographic background have different perceptions on price between superstores and
family-run stores.
51
Table 4.24 Relationship between Demographic Factors and Place
Age
Education
Occupation
Income
SS
FS
0.834
0.976
0.095
0.000**
0.107
0.000**
0.000**
0.284
0.001*
0.110
0.606
0.147
0.016*
0.006*
Car parking space
SS
FS
0.111
0.941
0.383
0.252
0.520
0.000**
0.011*
0.000**
0.750
0.001*
0.104
0.637
0.065
0.144
Cleanness of store
SS
FS
0.991
0.753
0.292
0.256
0.765
0.095
0.311
0.002*
0.639
0.002*
0.903
0.935
0.353
0.014*
Quality of facility
SS
FS
0.493
0.309
0.133
0.142
0.911
0.036*
0.005*
0.038*
0.543
0.042*
0.341
0.971
0.919
0.067
Product placement
SS
FS
0.656
0.019*
0.057
0.248
0.027*
0.181
0.064
0.023*
0.945
0.274
0.843
0.263
0.573
0.006*
Toilet Service
SS
FS
0.032*
0.971
0.549
0.197
0.604
0.002*
0.029*
0.031*
0.254
0.003*
0.521
0.394
0.300
0.686
(Place)
Location
Gender
Reachable location
Marketing Factor
Marital
Stores
Significant Level
The results from Table 4.24 reveal that consumers with different occupation,
income level and location have different perceptions on reachable location in
superstores (Sig. at 0.000, 0.001 and 0.016 respectively). In the mean time, consumers
with different age, education background and location have different perceptions on
reachable location in family-run stores (Sig. at 0.000, 0.000 and 0.006 respectively).
perceptions on reachable location between superstores and family-run stores.
The results from Table 4.24 reveal that consumers with different occupation
have different perceptions on car parking space of superstores (Sig. at 0.011). In the
mean time, consumers with different education background, occupation and income
have different perception on car parking space in family-run stores (Sig. at 0.000,
52
0.000 and 0.001 respectively). Therefore, consumers with different demographic
background have different perceptions on car parking space between superstores and
family-run stores. The result from Table 4.24 also reveals that consumers with
different occupation and income have different perceptions on cleanness of store only
in family-run stores (Sig. at 0.002 and 0.002 respectively). Therefore, consumers with
different demographic background have different perceptions on cleanness of store
have different perceptions on quality of facility in superstores (Sig. at 0.05). In the
mean time, consumers with different education background, occupation and income
have different perceptions on quality of facility in family-run stores (Sig. at 0.036,
0.038 and 0.042 respectively). Therefore, consumers with different demographic
background have different perceptions on quality of facility between superstores and
family-run stores. The results from Table 4.24 also reveal that consumers with
different education background have different perceptions on product placement in
superstores (Sig. at 0.027). In the mean time, consumers with different gender status,
occupation and location have different perceptions on product placement in familyrun stores (Sig. at 0.019, 0.023 and 0.006 respectively). Therefore, consumers with
different demographic background have different perceptions on product placement
The results from Table 4.25 reveal that consumers with different gender status
and occupation have different perceptions on toilet service in superstores (Sig. at
0.032 and 0.029 respectively). In the mean time, consumers with different education
background, occupation and income have different perceptions on toilet service in
family-run stores (Sig. at 0.002, 0.031 and 0.003 respectively). Therefore, consumers
with different demographic background have different perceptions on toilet service
demographic background have different perceptions on place between superstores and
family-run stores.
53
Table 4.25 Relationship between Demographic Factors and Promotion
Gender
Age
Education
Occupation
Income
Marital
Discount
SS
FS
0.665
0.581
0.135
0.000**
0.000**
0.130
0.398
0.454
0.060
0.053
0.854
0.065
0.025*
0.322
Occasional Gift
SS
FS
0.678
0.978
0.028*
0.518
0.008*
0.002*
0.354
0.605
0.190
0.045*
0.027*
0.003*
0.205
0.330
Advertisement
SS
FS
0.104
0.982
0.835
0.209
0.015*
0.019*
0.078
0.035*
0.013*
0.635
0.929
0.023*
0.453
0.651
Marketing Factor
(Promotion)
Location
Stores
Significant Level
background and location have different perceptions on offering discount in
different age have different perceptions on offering discount in family-run stores (Sig.
at 0.000). Therefore, consumers with different demographic background have
different perceptions on offering discount between superstores and family-run stores.
education background and marital status have different perceptions on occasional gift
in superstores (Sig. at 0.028, 0.008 and 0.027 respectively). In the mean time,
consumers with different education background, income and marital status have
different perceptions on occasional gift in family-run stores (Sig. at 0.002, 0.045 and
0.003 respectively). Therefore, consumers with different demographic background
have different perceptions on occasional gift between superstores and family-run
stores.
The results from Table 4.25 reveal that consumers with different educational
background and income have different perceptions about advertisements in
54
different education background, occupation and marital Status have different
perceptions on advertisement in family-run store (Sig. at 0.019, 0.035 and 0.023
respectively). Therefore, consumers with different demographic background have
different perceptions about advertisements between superstores and family-run stores.
demographic background have different perceptions on promotion between
superstores and family-run stores.
Therefore, the testing results Table 4.22, Table 4.23, Table 4.24 and Table
4.25 show that marketing factors (product, price, place and promotion) rejected null
hypothesis (H01) and accepted alternative hypothesis (H1). Therefore, consumers
with different demographic factors which are gender, age, education, occupation,
monthly income, marital status and resident place have different perceptions on
marketing factors between superstores and family-run stores.
55
4.6.2 Hypothesis 2: Relationship between demographic and business
factors.
Table 4.26 Relationship between Demographic and Business Factors
Stores
Gender
Age
Education
Occupation
Income
Marital
Location
Significant Level
Information service
SS
FS
0.183
0.786
0.611
0.142
0.074
0.067
0.881
0.005*
0.120
0.005*
0.383
0.301
0.089
0.199
Sales service
SS
FS
0.020*
0.864
0.459
0.048*
0.330
0.969
0.201
0.881
0.306
0.266
0.076
0.769
0.463
0.053
Complain
SS
FS
0.772
0.006*
0.129
0.127
0.355
0.145
0.087
0.008*
0.548
0.228
0.035*
0.242
0.973
0.739
Management ability
SS
FS
0.367
0.105
0.367
0.001*
0.749
0.020*
0.104
0.201
0.533
0.000**
0.184
0.027*
0.488
0.007*
Business Factor
and income have different perceptions on information service only in family-run
stores (Sig. at 0.005 and 0.005 respectively). Therefore, consumers with different
demographic background have different perceptions on information service between
superstores and family-run stores. The results from Table 4.26 also reveal that
consumers with different gender status have different perceptions on sales service in
56
superstores (Sig. at 0.020). In the mean time, consumers with different age have
different perceptions on sales service of family-run stores (Sig. at 0.048). Therefore,
consumers with different demographic background have different perceptions on sales
service between superstores and family-run stores.
The results from Table 4.26 reveal that consumers with different marital status
have different perceptions on complain and problem solving ability in superstores
(Sig. at 0.035). In the mean time, consumers with different gender status and
occupation have different perceptions on complain and problem solving ability in
family-run stores (Sig. at 0.006 and 0.008 respectively). Therefore, consumers with
different demographic background have different perceptions on complain and
problem solving ability between superstores and family-run stores. The results from
Table 4.26 also reveal that consumers with different age, education background,
income, marital status and location have different perceptions on management ability
only in family-run store (Sig. at 0.001, 0.020, 0.000, 0.027 and 0.007 respectively).
perceptions on management ability between superstores and family-run stores.
All testing results from Table 4.26 show that business factors rejected null
hypothesis (H02) and accepted alternative hypothesis (H2). Therefore, consumers
with different demographic factors which are gender, age, education, occupation,
monthly income, marital status and resident place have different perceptions on
business factors between superstores and family-run stores.
57
4.6.3 Hypothesis 3: Relationship between demographic and economic
factors.
Table 4.27 Relationship between Demographic and Economic Factors
Gender
Age
Education
Occupation
Income
Marital
Benefit economy
SS
FS
0.153
0.497
0.003*
0.016*
0.066
0.011*
0.025*
0.184
0.020*
0.220
0.049*
0.427
0.194
0.360
Benefit consumers
SS
FS
0.295
0.512
0.418
0.216
0.856
0.574
0.034*
0.888
0.407
0.876
0.149
0.969
0.407
0.002*
Create employment
SS
FS
0.219
0.421
0.001*
0.086
0.000**
0.282
0.000**
0.120
0.707
0.053
0.272
0.104
0.149
0.648
Giving tax
SS
FS
0.530
0.931
0.089
0.777
0.180
0.074
0.645
0.588
0.050*
0.642
0.032*
0.144
0.656
0.015*
Follow regulations
SS
FS
0.256
0.428
0.071
0.145
0.132
0.239
0.198
0.180
0.020*
0.852
0.759
0.634
0.005*
0.331
Economic Factor
Location
Stores
Significant Level
occupation, income, and marital status have different perceptions on benefiting local
economy in superstores (Sig. at 0.003, 0.025, 0.020 and 0.049 respectively). In the
mean time, consumers with different age and education background have different
58
perceptions on benefiting local economy in family-run stores (Sig. at 0.016 and 0.011
different perceptions on benefiting local economy between superstores and family-run
stores. The results from Table 4.27 also reveal that consumers with different
occupation have different perceptions on benefiting local consumers in superstores
(Sig. at 0.034). In the mean time, consumers with different location have different
perceptions on benefiting local consumers in family-run stores (Sig. at 0.002).
perceptions on benefiting local consumers between superstores and family-run stores.
education background and occupation have different perceptions on creating
employment only in superstores (Sig. at 0.001, 0.000, and 0.000 respectively).
perceptions on creating employment between superstores and family-run stores. The
results from Table 4.27 also reveal that consumers with different income and marital
status have different perceptions on giving tax in superstores (Sig. at 0.05 and 0.032
respectively). In the mean time, consumers with different location have different
perceptions on giving tax in family-run stores (Sig. at 0.015). Therefore, consumers
with different demographic background have different perceptions on giving tax
The results from Table 4.27 reveal that consumers with different income and
location have different perceptions on following government rules and regulations
only of superstores (Sig. at 0.020 and 0.005 respectively). Therefore, consumers with
different demographic background have different perception on following government
rules and regulations between superstores and family-run stores.
The results from Table 4.27 rejected H03 and accepted H3 which stated that
consumers with different demographic factors which are gender, age, education,
occupation, monthly income, marital status and resident place have different
perceptions on economic factors between superstores and family-run stores.
59
4.6.4 Hypothesis 4: Relationship between demographic and social factors.
Table 4.28 Relationship between Demographic and Social Factors
Gender
Education
Occupation
Income
Marital
Location
Social Activities
SS
FS
0.096
0.376
0.125
0.041*
0.586
0.466
0.347
0.094
0.078
0.014*
0.602
0.017*
0.722
0.013*
Humanitarian aid
SS
FS
0.233
0.283
0.146
0.129
0.114
0.576
0.129
0.312
0.066
0.061
0.196
0.048*
0.967
0.112
Local culture
SS
FS
0.013*
0.645
0.049*
0.441
0.017*
0.507
0.143
0.216
0.002*
0.658
0.864
0.067
0.738
0.020*
Labor, human right
SS
FS
0.055
0.980
0.440
0.018*
0.013*
0.399
0.086
0.147
0.001*
0.759
0.848
0.015*
0.526
0.579
Environment Safety
SS
FS
0.475
0.950
0.966
0.003*
0.567
0.224
0.310
0.014*
0.291
0.656
0.806
0.006*
0.813
0.577
Social Factors
Age
Stores
Significant Level
The results from Table 4.28 reveal that consumers with different age, income,
marital status and location have different perceptions on contribution to social
activities only in family-run stores (Sig. at 0.041, 0,014, 0.017 and 0.013
different perceptions on contribution to social activities between superstores and
60
family-run stores. The results from Table 4.28 also reveal that consumers with
different marital status have different perceptions on contribution to humanitarian aid
only in family-run stores (Sig. at 0.048). Therefore, consumers with different
demographic background have different perceptions on contribution to humanitarian
aid between superstores and family-run stores.
The results from Table 4.28 reveal that consumers with different gender, age,
education background and income have different perceptions on care about local
culture in superstores (Sig. at 0.013, 0.049, 0.017 and 0.002 respectively). In the mean
time, consumers with different location have different perception on care about local
culture in family-run stores (Sig. at 0.020). Therefore, consumers with different
demographic background have different perceptions on care about local culture
background and income have different perceptions on care about labor right and
human right in superstores (Sig. at 0.013 and 0.001 respectively). In the mean time,
consumers with different age and marital status have different perceptions on care
about labor right and human right in family-run stores (Sig. at 0.018 and 0.15
different perceptions on care about labor right and human right between superstores
and family-run stores. The results from Table 4.28 also reveal that consumers with
different age, occupation and marital status have different perceptions on care about
environmental safety only in family-run stores (Sig. at 0.003, 0,014 and 0.006
different perceptions on care about environmental safety between superstores and
family-run stores.
The results from Table 4.28 rejected H04 and accepted H4 which stated that
consumers with different demographic factors which are gender, age, education,
occupation, monthly income, marital status and resident place have different
perceptions on social factors between superstores and family-run stores.
61
Chapter 5
Conclusions, Discussions and Recommendations
5.1 Summary of the Study
This study on consumer perception towards retail stores was accomplished by
approving hypotheses structured from the conceptual framework which focus a broad
sense on marketing, business, economic and social factors. A literature review was
also carried including past research, concepts and current issues concerned with
superstores and family-run stores. Literature review described the expansion of
superstores (Big C, Carrefour and Tesco Lotus) in Thailand. Besides that it
emphasized on the conflicts between retailers, wholesalers and international giants.
Government regulations for retail industry were also described. Local retailers and
wholesalers asked for government restrictions on superstores and intervention on
retail industry. Therefore, the Thai government made some restrictions on superstores,
but it also tried to create free and fair business practices to benefit ultimate
consumers.
The researcher used qualitative methods to approach a wide scope of
consumer perceptions. 400 sample people were randomly picked up from central,
northern, western and eastern parts of Bangkok. The respondents’ gender status is
nearly equal (210 female and 178 male). The majority of the respondents are 25 – 30
year old and 20 – 25 year old (126 and 115 respectively). Most of the respondents are
singles, bachelor degree holders and employees. The majority of the respondents earn
under Bt 10,000 per month.
The descriptive analyses of shopping behavior also revealed that majority of
respondents shopped when they need to buy something, while they are on the way and
when they are free. So the outcomes can not be assumed that consumers would shop
when they have extra money. The results from Table 4.9 and Table 4.10 found that
respondents spent more time at superstores than family-run stores although
frequencies of shopping times are the same. Consequently, the results from Table 4.11
found that respondents spent more money at superstores than family-run stores.
Spending more time might make respondents spent more money visa versa. So,
superstores could sell more and can make more profit that have negative affect on
family-run stores and the study can agree with what Jitpleecheep (2008b) said that,
62
about 300,000 small local family-run stores closed down their business in Thailand in
the past decade because of superstores.
5.2 Findings from Attitudinal Statements
According to the analysis results from attitudinal statements, respondents
enjoyed shopping. They believed that retail stores made consumers’ shopping more
convenient and improved. They knew that superstores and family-run stores compete
with each other by which they could obtain more benefit. They were aware of familyrun stores closed down because of superstores, and they have concerns on that.
Therefore, respondents wanted government’s intervention in the retail industry. They
wanted government to make more restrictions on superstores. However, they
preferred free and fair competition in retail store business. On the other hand, they felt
that government should support and helped family-run stores more. Finally, they
perceived that superstores are essential for consumers and family-run stores are not
enough for consumers in Bangkok.
Respondents were very satisfied with product variety in superstores, but they
were not dissatisfied in family-run stores. Respondents were more satisfied with
product quality in superstores than in family-run stores. However, they were neither
satisfied nor dissatisfied with traditional and handmade products both in superstores
and family-run stores. Respondents were perceived that the prices in superstores are
more reasonable and stable than prices in family-run stores. Respondents were more
satisfied with car-parking space, cleanness, quality of facility and product placement
in superstores than family-run stores. Regarding with toilet service, respondents were
dissatisfied in family-run store but satisfied in superstores. Respondents were also
satisfied with promotion services such as discount and occasional gift offerings in
superstores more than in family-run stores.
The study found that respondents are more satisfied with business factors such
as information service, sales service, problem solving activities and management
abilities in superstores than those in family-run stores. Respondents were perceived
that superstores benefited to local economy and contributed in social activities more
than family-run stores did. Therefore, respondents were generally more satisfied with
superstores than family-run stores.
63
5.3 Hypothesis Testing
One-way ANOVA was used to test hypotheses tested and the results were
summarized and presented below:
Table 5 Hypothesis Results
Hypotheses
Statement
Result
H01
Consumers with different demographic factors which are
gender, age, education, occupation, monthly income, marital
status and resident place have no different perceptions on
Rejected
H1
status and resident place have different perceptions on
Accepted
H02
Rejected
H2
business factors between superstores and family-run stores.
Accepted
H03
economic factors between superstores and family-run stores.
Rejected
H3
economic factors between superstores and family-run stores.
Accepted
H04
social factors between superstores and family-run stores.
Rejected
H4
social factors between superstores and family-run stores.
Accepted
64
5.4 Research Difficulties and Limitations
Since the researcher is not a Thai, the language barrier made difficulties when
questionnaires were distributed in Thai language. The researcher could not read Thai
journals, newspapers, and past time research articles and theses which are written by
Thai language. Therefore, only text books, theses, newspapers and international
journals and online articles, written in English language were described in this study.
Time and cost constraints were also limitations for this study.
Regarding questionnaire distribution, consumers were randomly selected near
shopping centers such as Big C Saphankwai, Chuktuchuk Weekend Market, The Mall
Bangkapi, Tesco Lotus Wang Sawang and Carrefour Rangsit. Most of the shoppers
were young Thai ladies and so receiving gender and age status was difficult to be
equal ratio. Finally, this survey questionnaire would not perfectly cover for the entire
Bangkok population.
5.5 Implementation
The results from this study provides basic information that could be beneficial
to related parties including superstores operators, local family-run stores, and general
public in different dimension.
Superstore operators can find out how the consumers’ perception on their
important position in Bangkok. They can know how much consumers care about the
conflicts with local retailers. The most important one is consumers’ perception on
their marketing strategies by which they can reach their goals and objectives.
Local family-run stores can be informed consumers’ shopping attitudes and
habits. They will know how consumers care only for their benefits despite their
conflicts with international giants. Moreover, they can know what consumers really
need and want by which they can change their business strategies to be able to
compete with others.
The general public have concerns about unfair competition between
superstores and local family-run stores, but they will focus on their benefits since they
all are consumers of retail stores. Besides that they can know how the government is
solving the conflicts between international giants and local retailers. They can know
the general perceptions on consumers on retail stores by which their perception might
also change to fit with they reality. They can also claims government to make free and
fair competitions in retail industry.
65
5.6 Business Suggestions
Family-run stores should take advantage on customer relationship as being
small ones. Moreover, they should keep clean store environment, place product in
neat and tidy, check up stocks and replace them often for appearance attraction. They
should try different consumer product brands from superstores. Sometimes pricing
strategies need to persuade consumers. If it is possible, they should have toilet service.
Superstores have to be careful of consumers’ perceptions that superstores
destroyed many local small stores. To get rid of that perception, they need to show
their charity and make donations to society. They should be involved in social
activities as much as they can. They should avoid banning wholesalers from selling to
small stores. Since they were big, product placement is important because consumers
used to have difficulty to find out the products they want. Sales staffs should have
more concerns on consumers.
5.7 Recommendations for Future Research
According to current issues and consumer perceptions, the researcher knows
consumers in Bangkok are not satisfied yet with retail stores industry. To optimize
consumers’ benefit, small stores, superstores and governments should know
consumers’ perception well. Just by the conflict between local retailers and
international giants, government should not restrict much on superstores but they also
should think on consumers’ benefits. To benefit consumers in Thailand, future
researches on consumer perceptions towards retail stores should be made much more
not only in Bangkok but also in other districts with both Thai and English languages.
66
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73
Appendix A
Questionnaire (English)
This questionnaire is to collect data of consumers’ perception toward retail stores comparing
between superstore chains (Big C, Tesco Lotus, Carrefour) and family-run stores in Bangkok.
This survey is conducted for the purpose of the preparation of a thesis paper for the
completion of a Master’s Degree in Business Administration, Shinawatra University. Data
will be used for analyses and will remain confidential.
Part 1 - Demographic Information
Please mark (
) a box for each question
1.1 Gender
Male
Female
Under 20 years
20 – 25 years
26 – 30 years
31 – 40 years
41 – 50 years
51 – 60 years
Under High School
High School
Vocational School
Bachelor Degree
Master Degree
Doctorate Degree
Student
Housewife
Professional
Employee
Entrepreneur
Government Official
1.2 Age
Above 60 years
1.3 Education
Other
1.4 Occupation
Other
1.5 Monthly Income
Less than Bt 10,000
Bt 10,001 – Bt 15,000
Bt 15,001 – Bt 20,000
Bt 20,001 – Bt 30,000
Bt 30,001 – Bt 50,000
More than Bt 50,000
74
1.6 Marital Status
Single
Married
Divorce
1.7 Please select a place where you stay or a place close to your residence.
Central Part
Eastern Part
Western Part
Northern Part
Ladprao
Ramindra
Wang Sawang
Chaengwattana
Ratchadapisek
Sukhapiban
Tiwanon
Rangsit
Saphankwai
Bangkapi
Dao Kanong
Bang Khaen
Sukhunvit
Hua Mark
Phethkasem
Don Muang
Silom
Ekkamai
Rama II
Laksi
Part 2 - Behavioral Information
2.1 When do you go shopping? (You can mark more than one box)
When I need to buy something
When I have extra money
While I am on the way
When I accompany friends
When I am free
When I feel lonely
Other
2.2 How often do you go shopping within a month? (Please mark on both sides)
Family-run Store
Superstores (Big C, Tesco Lotus, Carrefour)
None
None
1 - 3 times
1 - 3 times
4 – 6 times
4 – 6 times
More than 6 times
More than 6 times
2.3 How long does a shopping time last? (Please mark on both sides)
Family-run Store
None
None
30 minutes– one hour
30 minutes– one hour
More than one hour
More than one hour
75
2.4. How much money do you generally spend per a shopping?
(Please mark on both sides)
Family-run Store
None
None
Less than Bt 500
Less than Bt 500
Bt 500 – Bt 1000
Bt 500 – Bt 1000
Bt 1001 – Bt 3000
Bt 1001 – Bt 3000
More than Bt 3000
More than Bt 3000
Part 3 - Attitudinal Statements
Retail stores improve consumers’ life style
I know that Thai government is restricting on superstore expansion
We don’t need superstores because family-run stores are enough
76
Strongly
Disagree
Disagree
Neutral
Statement
Agree
) in a cell for each statement that matches with your attitude.
Strongly
Agree
Please mark (
Part 4
(A) Comparing consumer satisfaction level on superstore chains and family-run stores
Satisfaction Levels
5 = Very Satisfied, 4 = Satisfied, 3 = Neutral, 2 = Dissatisfied, 1 = Very Dissatisfied
Two Types of Retail Stores
Please mark (
) both sides
Superstore Chains
5
4.1 Marketing Factors
4.1.1 Consumer satisfaction on Product
Variety of products
Quality of products
Fresh and healthy food
Traditional product & handmade products
4.1.2 Consumer satisfaction on Price
Reasonable Price
Stable Price
4.1.3 Consumer satisfaction on Place
Easily reachable location
Car parking space and service
Cleanness of the store
Quality of facility and equipment
Product placement
Toilet Service
4.1.4 Consumer satisfaction on Promotion
Offering discount (price, premium, etc.)
Occasional gift for consumer
Advertisement and consumer awareness
4.2 Other Business Factors
Information service
Sales service
Complain and problem solving ability
Management ability
77
4
3
2
1
Family-run Stores
5
4
3
2
1
(B) Comparing consumers’ perceptions on superstores and family-run stores regarding
with economic factors and social factors.
Perception weighting Levels
5 = Very High, 4 = High, 3 = Rather High, 2 = Normal, 1 = Low
Two Types of Retail Stores
Please mark (
) both sides
Superstore Chains
5
4
3
2
1
Family-run Stores
5
4.3 Economic Factors
Benefiting local economy
Benefiting local consumers
Creating employment
Giving tax to government
Follow government rules and regulations
4.4 Social Factors
Contribution to social activities
Contribution to humanitarian aid
Care about local culture
Care about labor right & human right
Care about environmental safety
(Pollution, Toxic, Garbage, etc.)
Your suggestions and feedbacks for Superstore Chains
Your suggestions and feedbacks for Family-run Stores
Thank you for your valuable time and feedback.
78
4
3
2
1
Appendix B
Questionnaire (Thai)
แบบสอบถามนี้มีวัตถุประสงคเพื่อศึกษาเปรียบเทียบเกี่ยวกับการรับรูของผูบริโภคที่มีตอหางคาปลีกขนาดใหญ
(บิ๊กซี,เทสโกโลตัส,คารฟูร)และรานคาปลีกทั่วไปในกรุงเทพมหานครขอมูลที่ไดจากแบบสอบถามนี้จะถูกเก็บ
เปนความลับละจะนํามาใชสําหรับการศึกษาและวิจัยของคณะการจัดการมหาวิทยาลัยชินวัตรเทานั้นผูวิจัย
ขอขอบพระคุณที่ทานใหความกรุณาตอบแบบสอบถามมา ณ โอกาสนี้ดวย
สวนที่ 1 – ขอมูลสวนตัว
กรุณาทําเครื่องหมาย
ลงใน
ตอไปนี้ที่ตรงกับทานมากที่สุด
1.1 เพศ
ชาย
หญิง
ต่ํากวา 20 ป
31 – 40 ป
60 ปขึ้นไป
20 – 25 ป
41 – 50 ป
26 – 30 ป
51 – 60 ป
ประถมศึกษา
ป.ตรี
อื่นๆ
มัธยมศึกษา
ป.โท
อาชีวะศึกษา
ป. เอก
นักเรียน
ขาราชการ
อื่นๆ
แมบาน
พนักงาน
ผูเชี่ยวชาญเฉพาะดา
เจาของธุรกิจ
1.2 อายุ
1.3 การศึกษา
1.4 อาชีพ
1.5 รายไดตอเดือน
ต่ํากวา 10,000 บาท
15,001 – 20,000 บาท
30,001 – 50,000 บาท
10,001 – 15,000 บาท
20,001 – 30,000 บาท
50,000 บาท ขึ้นไป
79
1.6 สถานะภาพ
โสด
แตงงาน
หยา/ หมาย
1.7 กรุณาเลือกพื้นที่ทานพักอาศัยหรือพื้นที่ใกลเคียง
กลาง
ลาดพราว
รัชดาภิเษก
สะพานควาย
สุมขุมวิท
สีลม
ตะวันออก
รามอินทรา
สุขาภิบาล
บางกะป
หัวหมาก
เอกมัย
ตะวันตก
วงศสวาง
ติวานนท
ดาวคะนอง
เพชรเกษม
พระราม 2
เหนือ
แจงวัฒนะ
รังสิต
บางเขน
ดอนเมือง
หลักสี่
สวนที่ 2 – พฤติกรรมการซื้อสินคา
2.1 ทานซื้อสินคาเมื่อไร (เลือกตอบไดมากกวา 1 ขอ)
ตอนมีความจําเปนตองซื้อสินคา
ระหวางการเดินทาง
ตอนมีเวลาวาง
อื่นๆ
ตอนที่มีรายไดพิเศษ
ตอนที่ไปซื้อสินคาเปนเพื่อนบุคคลอื่น
ตอนที่อยูคนเดียว
2.2 ทานซื้อสินคากี่ครั้งตอเดือน (กรุณาตอบทั้ง 2 สวน)
รานคาปลีก (รานโชวหวย)
หางคาปลีกขนาดใหญ (บิ๊กซี, เทสโกโลตัส, คารฟูร)
ไมซื้อสินคา
1 - 3 ครั้ง
1 - 3 ครั้ง
4 – 6 ครั้ง
4 – 6 ครั้ง
มากกวา 6 ครั้ง
มากกวา 6 ครั้ง
2.3 ทานใชเวลาอยางนอยกี่นาทีตอการซื้อสินคาแตละครั้ง (กรุณาตอบทั้ง 2 สวน)
นอยกวา 30 นาที
นอยกวา 30 นาที
30 นาที – 1 ชั่วโมง
30 นาที – 1 ชั่วโมง
มากกวา 1 ชั่วโมง
มากกวา 1 ชั่วโมง
80
2.4 โดยทั่วไปทานใชเงินเปนจํานวนเทาไรตอการซื้อสินคาแตละครั้ง (กรุณาตอบทั้ง 2 สวน)
นอยกวา 500 บาท
นอยกวา500 บาท
500 – 1000 บาท
500 – 1000 บาท
1001 – 3000 บาท
1001 – 3000 บาท
มากกวา 3000 บาท
มากกวา 3000 บาท
สวนที่ 3 – ทัศนคติตอการซื้อสินคา
ทานชอบและมีความสุขในการซื้อสินคา
ทานทราบถึงความแตกตางของหางคาปลีกขนาดใหญกับรานคาปลีก
รานคาปลีกชวยปรับรูปแบบการการดําเนินชีวิตของผูบริโภค
หางคาปลีกขนาดใหญและรานคาปลีกแขงขันกันขายสินคา
หางคาปลีกขนาดใหญสงผลกระทบตอรานคาปลีก
การปดกิจการของรานคาปลีกเปนผลกระทบจากหางคาปลีกขนาดใหญ
ทานทราบวารัฐบาลมีนโยบายจํากัดการขยายตัวของหางคาปลีกขนาดใหญ
รัฐบาลควรเพิ่มนโยบายจํากัดการขยายตัวของหางคาปลีกขนาดใหญ
รัฐบาลควรสนับสนุนใหหางคาปลีกขนาดใหญและรานคาปลีกแขงขันกันอยางเสรี
รัฐบาลควรมีนโยบายสนับสนุนและใหความชวยเหลือแกรานคาปลีก
ทานไมตอการหางคาปลีกขนาดใหญเพราะรานคาปลีกมีจํานวนเพียงพอแลว
หางคาปลีกขนาดใหญมีความจําเปนตอผูบริโภคในกรุงเทพมหานคร
81
ไมเห็นดวยที่สุด
ไมเห็นดวย
เฉยๆ
ขอความ
เห็นดวย
ลงในชองวางดานขวามือของแตละขอความที่ตรงกับทานมากที่สุด
เห็นดวยที่สุด
สวนที่ 4
(A) การเปรียบเทียบความพึงพอใจของผูบริโภคที่มีตอหางคาปลีกขนาดใหญและรานคาปลีก (รานโชวหวย)
ระดับความพึงพอใจ; 5 = พอใจที่สุด, 4 = พอใจ, 3 = เฉยๆ, 2 = ไมพอใจ, 1 = ไมพอใจที่สุด
ประเภทของรานคาปลีก
กรุณาทําเครื่องหมาย ลงในชองวางดานขวามือทั้ง 2
ประเภท
หางคาปลีกขนาดใหญ
5
4.1 ปจจัยดานการตลาด
4.1.1 ความพึงพอใจในสินคา
สินคามีความหลากหลาย
คุณภาพของสินคา
สินคาสด และสินคาเพื่อสุขภาพ
สินคาพื้นเมือง และสินคาหัตถกรรม
4.1.2 ความพึงพอใจในราคา
ราคาสมเหตุสมผล
ราคาคงที่
4.1.3 ความพึงพอใจในสถานที่
รานคาตั้งอยูในพื้นที่ที่งายตอการเขาถึง
บริการที่จอดรถ
ความสะอาดของรานคา
สิ่งอํานวยความสะดวกตางๆ มีคุณภาพ
ตําแหนงการจัดวางสินคา
บริการหองน้ํา
4.1.4 ความพึงพอใจในการสงเสริมการขาย
สวนลด (เชน ลดราคา, ของสมนาคุณ เปนตน)
ของขวัญในโอกาสตางๆ
การโฆษณาและการตระหนักถึงผูบริโภค
4.2 ปจจัยอื่นๆ ดานธุรกิจ
บริการขอมูลขาวสาร
บริการการขาย
บริการรองเรียนและการแกไขปญหา
ความสามารถดานการจัดการ
82
4
3
2
1
5
4
3
2
1
(B) การรับรูของผูบริโภคตอหางคาปลีกขนาดใหญและรานคาปลีก(รานโชวหวย)ในปจจัยดานเศรษฐกิจและสังคม
ระดัการรับรู; 5 = สูงสุด, 4 = สูง, 3 = คอนจางสูง, 2 = ปกติ, 1 = นอย
ประเภทของรานคาปลีก
ประเภท
หางคาปลีกขนาดใหญ
ลงในชองวางดานขวามือทั้ง 2
5
4
3
2
1
4.3 ปจจัยดานเศรษฐกิจ
สงผลดีตอสภาพเศรษฐกิจในพื้นที่
สงผลดีตอผูบริโภคในพื้นที่
เกิดการจางงาน
รัฐบาลมีรายไดจากการเก็บภาษีตางๆ
ปฏิบัติตามกฎและนโยบายของรัฐบาล
4.4 ปจจัยดานสังคม
สนับสนุนกิจกรรมของสังคม
สนับสนุนกิจกรรมสาธารณกุศล
ใหความสําคัญกับวัฒนธรรมไทย
ใหความสําคัญดานแรงงานและสิทธิมนุษยชน
ใหความสําคัญกับสิ่งแวดลอม
(เชน มลภาวะ, สารพิษ, ขยะ เปนตน)
กรุณาแสดงความคิดเห็นและขอมูลปอนกลับของทานที่มีตอหางคาปลีกขนาดใหญ
กรุณาแสดงความคิดเห็นและขอมูลปอนกลับของทานที่มีตอรานคาปลีก (รานโชวหวย)
ขอขอบพระคุณที่ทานใหความกรุณาตอบแบบสอบถาม
83
5
4
3
2
1
Appendix C
Thailand Population
Source: United Nation (2007)
84
Appendix D
Thailand Retail Sales Shares by Format (2005)
Thailand
Retail Sales Shares by Format (2005)
Hypermarkets &
warehouse clubs
Traditional stores
Convenience stores
Department stores
Supermarkets
Specialty stores
Drugstores
Source: Pricewaterhousecoopers (2007)
85
Appendix E
Thailand Retail Market Shares
Source: ACNielsen and PlanetRetail (2005)
86
Appendix F
Leading Superstores in Thailand (2000 – 2005)
Source: ACNielsen and PlanetRetail (2005)
87
Appendix G
Thailand Retail Sales Index (2005 – 2007)
Source: Bank of Thailand (2007b)
88
Appendix H
Thailand Retail Sales (2005 – 2007)
Source: Bank of Thailand (2007a)
89
Appendix I
2006 Global Retail Development Index
Source: Kearney (2006b)
90
Appendix J
2006 GRDI Market Attractiveness
Source: Kearney (2006a)
91
Appendix K
Research Findings
1. Comparing Three Shopping Reasons
Comparing Shopping Choices
400
352
350
250
200
150
84
100
49
50
Ot
he
r
fee
l lo
ne
ly
Wh
en
I
f re
e
Wh
en
I
am
rie
nd
s
acc
om
pa
ny
f
ay
Wh
en
I
wh
ile
Ia
m
on
t
he
w
mo
ne
y
ha
ve
ext
ra
Wh
en
I
ne
ed
t
ob
uy
som
et h
i
ng
0
Wh
en
I
Number of Respondents
300
Choice one
Choice two
Variables
92
Choice three
2. Comparative Analysis of Shopping Times
How often do you go shopping within a month?
Family-run Store
100
Superstores
90
80
74.6
70
Percent
60
50
42
40
30
20
10
24.6
16.8
16.6
16.2
5.1
4.1
0
None
1 - 3 times
4 - 6 times
Shopping times
93
More than 6 times
3. Comparative Analysis of Spending Time
How long does a shopping time last?
Family-run Store
100
Superstores
90
80
73.8
70
Percent
60
50
46.3
43.3
40
30
20
13.9
8.9
10
8.1
4.3
1.5
0
None
30 minutes - one hour
Time
94
More than one hour
4. Comparative Analysis of Spending Money
How much money do yo generally spend per a shopping?
Family-run Store
Superstores
100
90
76.8
80
70
Percent
60
56.5
50
40
30
25.6
20
12.5
12.2
8.5
10
2.2
0.5
0
None
Less than Bt 500
Bt 500 - Bt 1000
Spending amount
95
Bt 1001 - Bt 3000
4.9
0.2
More than Bt 3000
Agree
Neutral
Disagree
Strongly
Disagree
66
203
122
8
0
3.83
Agree
79
253
61
4
0
4.06
Agree
Retail stores improve consumers' life style
40
200
142
15
1
3.68
Agree
82
146
100
64
5
3.63
Agree
173
156
45
25
0
4.2
Agree
121
155
76
37
10
3.86
Agree
I know that government is restricting on superstore expansion
58
160
119
48
11
3.58
Agree
109
154
99
28
5
3.92
Agree
38
168
75
85
33
3.24
Neutral
114
193
74
15
4
3.99
Agree
We don't need superstores because family-run stores are enough
23
90
151
116
19
2.97
Neutral
52
225
100
18
4
3.77
Agree
96
X
Related
Level
Strongly
Agree
5. Interpretation of Consumer Attitudes towards Retail Stores
6. Comparative Analysis of Consumer Attitudes towards Retail Stores (1)
Attitudinal Level of Consumers towards Retail Stores - 1
5.0
0
4.2
0
4.20
4.06
3.86
3.83
3.68
3.63
Mean Level
3.4
0
2.6
0
1.8
0
1.0
0
I enjoy going
shopping
I know the difference Retail stores improve
Superstores and
between superstores consumers' life style family-run stores are
and family-run stores
competing each other
97
Superstores have
negative effects to
family-run stores
I care that family-run
stores are closed
down because of
superstores
7. Comparative Analysis of Consumer Attitudes towards Retail Stores (2)
Attitudinal Level of Consumers toward Retail Stores - 2
5.0
0
4.2
0
3.99
3.92
3.77
3.58
Mean Level
3.4
0
3.24
2.97
2.6
0
1.8
0
1.0
0
I know that
Government should Government should
government is
restrict more on
allow free and fair
restricting on
superstore expansion
competition
superstore expansion
Government should
support family-run
stores
98
We don't need
superstores because
family-run stores are
enough
Superstores are
essential for
consumers in
Bangkok
8. Comparative Analysis of Consumer Satisfaction Levels on Product and Price
Consumer Satisfaction on Retail Stores (Product & Price)
5.0
0
4.40
4.2
0
3.91
3.82
3.55
3.4
0
Mean
3.87
3.31
3.19
3.09
3.16 3.18
3.28
3.25
2.6
0
1.8
0
1.0
0
Variety of products
Quality of products
Fresh and healthy
food
Traditional &
handmade products
Product
Reasonable Price
Price
Superstores
99
Family-run Stores
Stable Price
9. Comparative Analysis of Consumer Satisfaction Levels on Place
Consumer Satisfaction on Retail Stores (Place)
5.0
0
4.2
0
4.12
4.01
3.88 3.82
4.00
4.00
3.92
3.4
0
Mean
3.13
2.94
2.80
3.01
2.6
0
2.40
1.8
0
1.0
0
Easily reachable
location
Car parking space
and service
Cleanness of the
store
Quality of facility &
equipment
Place
Superstores
100
Family-run Stores
Product placement
Toilet Service
10. Comparative Analysis of Consumer Satisfaction Levels on Promotion and Business Factors
Consumer Satisfaction on Retail Stores (Promotion & Business Factors)
5.0
0
4.2
0
4.00
3.97
3.77
3.82
3.77
3.78
3.49
Mean
3.4
0
2.88
3.02
2.81
2.81
2.82
2.75
2.6
0
2.87
1.8
0
1.0
0
Offering discount Occasional gift for
consumer
Advertisement
Information
service
Sales service
Promotion
Problem solving
ability
Business Factors
Superstores
101
Family-run Stores
Management
ability
11. Comparative Analysis of Consumer Satisfaction Levels on Economic Factors
Consumer Satisfaction on Retail Stores (Economic Factors)
5.0
0
4.2
0
3.93
3.80
Mean
3.4
0
3.52
3.34
3.76
3.56
3.42
2.98
2.98
2.73
2.6
0
1.8
0
1.0
0
Benefiting local economy
Benefiting local
consumers
Creating employment
Giving tax to government
Economic Factors
Superstores
102
Family-run Stores
Follow government
regulation
12. Comparative Analysis of Consumer Satisfaction Levels on Social Factors
Consumer Satisfaction on Retail Stores (Social Factors)
5.0
0
4.2
0
3.58
3.45
Mean
3.4
0
3.43
3.30
3.30
2.95
2.6
0
2.74
2.74
2.73
2.73
1.8
0
1.0
0
Contribution to social
activities
Contribution to
humanitarian aid
Care about local culture
Care about labor right
Social Factors
Superstores
103
Family-run Stores
Care about environmental
safety
74
Biography
Name:
Awng Di
Date of Birth:
February 20, 1984
Place of Birth:
Yangon, Myanmar
Institutions Attended:
Myanmar Institute of Theology
Yadanapon University
Home Address:
244/291, Soi 6, Ying O Lang, Viphawadee-Rangsit Rd.,
Srikan, Don Muang, Bangkok 10210
Telephone:
+66847534294
E-mail:
hpauladi@gmail.com
104

CONSUMERS` PERCEPTIONS TOWARD RETAIL STORES

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