Predictors of cross-buying in grocery retailing: the role of non-traditional product/service categories
Keywords:retail offer extension, non-traditional product/service categories (NTPS), private labels, customer loyalty, consumer service, grocery retailing
Purpose of the paper: This study investigates cross-buying in retailing, with the aim to identify consumers’ purchase predictors of non-traditional product/service categories (NTPS) offered with the grocery retailer’s brand.
Methodology: A structured questionnaire was administered to a sample of 598 retail customers. Data were processed through a standard Poisson regression model considering the number of extension categories bought.
Findings: Among shoppers’ socio-demographic characteristics, age and education were found to have an impact on the number of NTPS purchased. Behavioural loyalty, value consciousness and perceived private label quality proved to be additional determinants of cross-buying by retail customers.
Research limits: The analysis focuses on the North Italian context, while the consideration of different retailing systems, with different levels of evolution also in terms of the NTPS mix offered, could benefit our understanding of cross-buying patterns.
Practical implications: The findings provide retailers and professionals with valuable insights for effective marketing strategies aimed to exploit customer cross-buying potential.
Originality of the paper: The study sheds light on the role of a number of predictors of cross-buying in the non-core offer of grocery retailers. Addressing how cognitive, social and personal characteristics interact in consumer decision-making process for NTPS in cross-buying, the study makes a new effort to better develop a profile of the PLs consumers, thus contributing to the literature on PLs and developing a managerial impact for retailers and practitioners.
AILAWADI, K. L., NELSIN, S. A., GEDENK, K. (2001), “Pursuing the Value-Conscious Consumer: Store Brands Versus National Brand Promotions”, Journal of Marketing, 651: 71-89.
BALTAS, G., ARGOUSLIDIS, P. C. (2007), “Consumer Characteristics and Demand for Store Brands”, International Journal of Retail & Distribution Management, 35(5): 328-341.
BALTAS, G., DOYLE, P. (1998), “An empirical analysis of private brand demand recognising heterogeneous preferences and choice dynamics”, Journal of the Operational Research Society, Vol. 49, pp. 790-798.
BATRA, R., SINHA, I. (2000), “Consumer-level factors moderating the success of private label brands”, Journal of Retailing, 76(2), pp- 175-191.
BELLIZZI, J. A., KRUECKEBERG, H. F., HAMILTON, J. R., MARTIN, W. S. (1981), “Consumer perceptions of national, private and generic brands”, Journal of Retailing, 57(4), pp. 56-70.
BETTMAN, J. R. (1974) “Relationship of information-processing attitude structures to private brand purchasing behavior”, Journal of Applied Psychology, 59(1), 79-83.
BOWEN, J. T., CHEN, S.-L. (2001), “The Relationship Between Customer Loyalty and Customer Satisfaction”, International Journal of Contemporary Hospitality Management, 13(5): 213-217.
BURGER, P. C., SCHOTT, B. (1972), “Can private brand buyers be identified?”, Journal of Marketing Research, 9(2), pp. 219-222.
BURTON, S., LICHTENSTEIN, D. R., NETEMEYER, R. G., GARRETSON, J. A. (1998) “A scale for measuring attitude towards private label products and an examination of its psychological and behavioural correlates”, Journal of the Academy of Marketing Science, 26(4), pp. 293-306.
BUTCHER, K., SPARKS, B., O’CALLAGHAN, F. (2001), “Evaluative and Relational Influences on Service Loyalty”, International Journal of Services Marketing, 12(4): 310-327.
COE, B. D. (1971), “Private versus national preferences among lower- and middle-income consumers”, Journal of Retailing, 47(3), pp. 61-72.
COLLINS-DOSS, C., LINDLEY, T. (2003), “Store Brands and Retail Differentiation: The Influence of Store Image and Store Brand Attitude on Store Own Brand Perceptions”, Journal of Retailing and Consumer Services, 10(6): 345-352.
CROSBY, L. A., EVANS, K. R., COWELES, D. (1990), “Relationship quality in services selling: an interpersonal influence perspective”, Journal of Marketing, 54(3), 68-81.
CUNNINGHAM, I. C. M., HARDY, A. P., IMPERIA, G. (1982), “Generic brands versus national brands and store brands”, Journal of Advertising Research, 22(1), pp. 25-32.
DAHANA W.D., MORISADA M., MIWA Y. (2018), “Cross-selling across stores or within a store? Impacts of cross-buying behavior in online shopping malls”, Journal of Marketing Channels, vol. 25, n. 1-2, pp. 47-72.
DAHANA W.D., MIWA Y., BAUMANN C., MORISADA M. (2020), “Relative importance of motivation, store patronage, and marketing efforts in driving cross-buying behaviors”, Journal of Strategic Marketing, pp.1-29.
DAHAR, S. K., HOCH, S. J. (1997), “Why Store Brand Penetration Varies by Retailer”, Marketing Science, 16(3): 208-227.
DE WULF, K., ODEKERKEN-SCHRÖDER, G., IACOBUCCI, D. (2001), “Investments in Consumer Relationship: A Cross-Country and Cross-Industry Exploration”, Journal of Marketing, 65(4): 33-50.
DICK, A. S., BASU, K. (1994), “Customer Loyalty: Toward an Integrated Conceptual Framework”, Journal of the Academy of Marketing Science, 22(2): 99-113.
DICK, A., JAIN, A., RICHARDSON, P. (1995), “Correlates of Store Brand Proneness: Some Empirical Observations”, Journal of Product & Brand Management, 4, 15-22.
DICK, A., JAIN, A., RICHARDSON, P. (1996), “How consumers evaluate store brands”, Journal of Product & Brand Management, Vol. 5 No. 2, pp. 19-28.
EVANSCHITZKY H., MALHOTRA N., WANGENHEIM F.V., LEMON K.N. (2017), “Antecedents of peripheral services cross-buying behavior”, Journal of Retailing and Consumer Services, n. 36, pp. 218-224.
FELVEY, J. (1982), “Cross-Selling by Computer”, Bank Marketing, pp. 25-27.
FRANK, R. E., BOYD, H. W., Jr. (1965), “Are private-brand-prone grocery consumers really different?”, Journal of Advertising Research, 5(4), pp. 27-35.
GARRETSON, J. A., FISHER, D., BURTON, S. (2002), “Antecedents of private label attitude and national brand promotion attitude: similarities and differences”, Journal of Retailing, 78(1), pp. 91-99.
GLYNN, M., CHEN, S. (2009) “Consumer-factors moderating private label brand success: Further empirical results”, International Journal of Retail and Distribution Management, 37(11).
GREWAL, D., KRISHNAN, R., BAKER, J., BORIN, N. (1998), “The effect of store name, brand name and price discounts on consumers' evaluations and purchase intentions”, Journal of Retailing, Volume 74, Issue 3, pp. 331-352.
HERSTEIN, R., TIFFERET, S., ABRANTES, J. L., LYMPEROPOULOS, C., ALBAYRAK, T., CABER, M. (2012), “The effect of personality traits on private brand consumer tendencies: A cross-cultural study of Mediterranean countries”, Cross Cultural Management: An International Journal, 19(2), pp. 196-214.
HOCH, S. J. (1996), “How should national brands think about private labels?”, Sloan Management Review, 37(2), pp. 89-102.
HOCH, S. J, BANERJI, S. (1993), “When Do Private Labels Succeed?”, Sloan Management Review, Cambridge Vol. 34, Issue 4.
JACOBY, J., KYNER, D. B. (1973), “Brand Loyalty vs. Repeat Purchasing Behaviour”, Journal of Marketing Research, 10:1-9.
JONES, T., TAYLOR, S. F., BANSAL, H. S. (2008), “Commitment to a Friend, a Service Provider, or a Service Company – Are They Distinctions Worth Making?”, Journal of the Academy of Marketing Science, 36(4): 473-487.
KARA, A., ROJAS-MENDEZ, J., KUCUKEMIROGLU, O., HARCAR, T. (2009) “Consumer preferences of store brands: Role of prior experiences and value consciousness”, Journal of Targeting, Measurement and Analysis for Marketing, 17(2), pp. 127-137.
KIREYEV, P., KUMAR, V. AND OFEK, E. (2017), “Match Your Own Price? Self-Matching as a Retailer’s Multichannel Pricing Strategy”, Marketing Science, 36, No. 6.
KUMAR V., GEORGE M., PANCRAS J. (2008), “Cross-buying in retailing: Drivers and consequences”, Journal of Retailing, vol. 84, n. 1, pp. 15-27.
LICHTENSTEIN, D. R., NETEMEYER, R. G., BURTON, S. (1990), “Distinguishing Coupon Proneness from Value Consciousness: An Acquisition-Transaction Utility Theory Perspective”, Journal of Marketing, 54(3), 54–67.
LICHTENSTEIN, D. R., RIDGWAY, N. M., NETEMEYER, R. G. (1993), “Price perceptions and consumer shopping behavior: A field study”, Journal of Marketing Research, 30(2), 234–245.
LIU, T. C., & WU, L. W. (2008), “Relationship quality and cross-buying in varying levels of category similarity and complexity”, Total Quality Management, 19(5), 493-511.
LYBECK, A., HOLMLUND, M., SAAKSJARVI, M. (2006) “Store brands vs. manufacturer brands: Consumer perceptions and buying of chocolate bars in Finland”, The International Review of Retail, Distribution and Consumer Research, 16(4), pp. 71-492.
MACINTOSH, G., LOCKSHIN, L. S. (1997), “Retail Relationships and Store Loyalty: A Multi-Level Perspective”, International Journal of Research in Marketing 14(5): 487-497.
MÄGI, A. W. (2003), “Share of Wallet in Retailing: The Effects of Customer Satisfaction, Loyalty Cards and Shopper Characteristics”, Journal of Retailing, 79(2):97-106.
MARTINELLI E. (2012), Distributori Grocery in Convergenza. Esperienze a confronto, Franco Angeli, Milano.
MARTINELLI, E., LUCERI, B., LATUSI, S. (2014), “Innovare l’offerta estendendo il retail brand: il ruolo della fedeltà e della sensibilità a prezzo e promozione”, Sinergie Italian Journal of Management, n. 93, Gennaio-Aprile 2014, pp.97-114.
MARTINELLI, E., BELLI, A., MARCHI, G. (2015), “The role of customer loyalty as a brand extension purchase predictor”, The International Review of Retail, Distribution and Consumer Research, 25 (2), 105-119.
MARTOS-PARTAL, M., GONZÁLEZ-BENITO, O., & FUSTINONI-VENTURINI, M. (2015), “Motivational profiling of store brand shoppers: Differences across quality tiers”, Marketing Letters, 26(2), 187-200.
MORISADA, M., MIWA, Y., & DAHANA, W. D. (2018a), “Dynamic impact of unprofitable cross-buying on purchase incidence and purchase amount”, Journal of Management Research, 10(2), 65-81.
MORISADA, M., MIWA, Y., & DAHANA, W. D. (2018b), “Behavioral Impacts of Promotion-induced Cross-buying: The Moderating Roles of Age and Gender”, Journal of Business Diversity, 18(2), 33-45.
MURPHY, P. E. (1978), “The effects of social class on brand and price consciousness for supermarket products”, Journal of Retailing, 54(2), pp- 33-90.
MURPHY, P. E., GENE, R. L. (1979), “Generic Supermarket Items: A Product and Consumer Analysis”, Journal of Retailing, Vol. 55, No. 2, pp. 3-14.
MYERS, J. G. (1967) “Determinants of Private Brand Attitude”, Journal of Marketing Research, 4(1), 73-81.
NARASIMHAN, C., WILCOX, R. (1998), “Private Labels and the Channel Relationship: A Cross‐Category Analysis”, The Journal of Business, 71(4), pp. 573-600.
NGOBO, V. P. (2004), “Drivers of customers' cross‐buying intentions”, European Journal of Marketing, Vol. 38 No. 9/10, pp. 1129-1157.
OLIVER, R. L. (1999), “Whence Consumer Loyalty?”, Journal of Marketing, 63: 33-44.
OMAR, O. E. (1996) “Grocery purchase behaviour for national and own-label brands”, The Service Industries Journal, 16(1), pp. 58-66.
PANDYA, D. M., & DHOLAKIA, A. (2020), “Reviewing Literature of Cross Buying Consumer Behaviour”, Mukt Shabd Journal, Vol. 9, Issue VIII.
PICÓN, A., CASTRO, I., ROLDÁN, J. L. (2014), “The Relationship Between Satisfaction and Loyalty: A Mediator Analysis”, Journal of Business Research, 67: 746-751.
PUTSIS, W. P. Jr., COTTERILL, R. W. (1999), “Share, price and category expenditure-geographic market effects and private labels”, Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 20(4), pp. 175-187.
QUELCH, J. A., HARDING, D. (1996), “Brands versus private labels: fighting to win”, Harvard Business Review, 74(1), pp. 99-110.
REICHHELD, F., SASSER Jr., W. E. (1990), “Zero Defections: Quality Comes to Services”, Harvard Business Review, 68(5): 105-111.
REINARTZ, W., J. S. THOMAS, & BASCOUL, G. (2008), “Investigating Cross-Buying and Customer Loyalty”, Journal of Interactive Marketing, 22 (1): 5-20.
RICHARDSON, P. S., DICK, A. S., JAIN, A. K. (1994) “Extrinsic and intrinsic cue effects on perceptions of store brand quality”, Journal of Marketing, 58(4), pp. 28-36.
RICHARDSON, P. S., DICK, A. S., JAIN, A. K. (1996) “Household store brand proneness: a framework”, Journal of Retailing, 72(2), pp. 159-185.
SETHURAMAN, R., COLE, C. (1999), “Factors Influencing the Price Premiums that Consumers Pay for National Brands Over Store Brands”, Journal of Product & Brand Management, 8(4): 340-351.
SHUKLA, P., BANERJEE, M., ADIDAM, P. T. (2013), The moderating influence of socio‐demographic factors on the relationship between consumer psychographics and the attitude towards private label brands, Journal of Consumer Behaviour, 12(6): 423-435.
SIROHI, N., MCLAUGHLIN, E. W., WITTINK, D. R. (1998), “A Model of Consumer Perceptions and Store Loyalty Intentions for a Supermarket Retailer”, Journal of Retailing, 74(2): 223-245.
STEENKAMP, J. B. E. M., VAN HEERDE, H., GEYSKENS, I. (2010), “What Makes Consumers Willing to Pay a Price Premium for National Brands Over Private Labels?”, Journal of Marketing Research, 47(6): 1011-1024.
SWEENEY, J., SOUTAR, G. (2001), “Consumer Perceived Value: The Development of a Multiple Item Scale”, Journal of Retailing, 77(2), 203-220.
SZYMANSKI, D. M., BUSCH, P. S. (1987), “Identifying the generics-prone consume: a meta-analysis”, Journal of Marketing Research, 24(4), pp. 425-431.
VERHOEF, P. C., NIJSSEN, E. J., SLOOT, L. M. (2002), “Strategic reactions to national brand manufacturers towards private labels”, European Journal of Marketing, 36(11/12), pp. 1309-1326.