Ijmra 14368
Ijmra 14368
Ijmra 14368
Keywords:
Consumer Behavior, Perception, Household, Retailing, Shopper Insights, Saudi Arabia
*
Dr. Salah Abunar, Assistant Professor of Supply Chain Management and Dean, College of
Business Administration (CBA), University of Business & Technology (UBT),
KSA. Email: salah@ubt.edu.sa
**
Dr. Mohammad Zulfeequar Alam, Assistant Professor of Marketing Department, College of
Business Administration (CBA), University of Business & Technology (UBT), KSA.
Email: zulfeqarm@ubt.edu.sa , (Correspondence Author).
1. Introduction:
Consumer behavior studies deal with customer identification and buying behavior patterns.
These studies aim to determine that who, where, when and how customer buy. The customer is a
buyer of a product or service. The consumer is a user of a product or service. However, we are
primarily interested in the behavior of customer shopping behavior and preferences rather than
consumer preferences. Client configuration includes many characteristics, such as age, gender,
colour, education, economic status, class, profession, religion, nationality, origin, and so on.
Consumption and purchasing behaviour is affected by these characteristics, and the relative
importance of each of these components varies greatly depending on the nature of the problem.
Retailing is a combination of activities involved in selling or leasing goods and services to the
consumer directly to end consumers for personal or household use. Retail sellers are always
eager to know the behaviour of the customer, which consists of understanding the purchasing
behaviour of the shopper, for example, how, what, when, where and why buy and buy. The
response of the retail client is a combination of elements of psychology, sociology, social
psychology, anthropology and economics. Marketers always try to understand the decision-
making process of the buyer, either individually or in groups and their behaviour variables. The
increase in income and occupation levels has changed the buying behaviour of customers and
customers become more comfortable taker than in the past. Therefore, marketers required having
the always better understanding of consumers or shopper behaviour, customer attitudes and the
way to influence, satisfy their needs and wants. Also, to develop successful retail marketing
strategies, retailers must understand consumers correctly so that they can respond and anticipate
their needs proactively. In addition, this study will help marketers to adapt and optimize their
marketing campaigns more efficiently to reach the current consumer choices. Therefore, this
present study is an attempt in this direction.
2. Literature Review:
2.1. Customer Satisfaction:
The researcher is referring the various studies related to consumer behaviours and retail
shopping. Belch and Belch (2007) state shopper behaviour as the method and activities people
engage in when exploring for, selecting, purchasing, using, evaluating, and disposing of products
and services to satisfy their needs and desires. Shopper satisfaction is the most impressive
intangible assets. Comparable to the feature of service, it can be accomplished by meeting
customer expectations (Oliver, 1980; Boulding, Kalra, Staelin, & Zeithaml, 1993; Bahia, Paulin,
& Perrien, 2000; Homburg, Koschate, & Hoyer, 2006; Jayasankaraprasad & Kumar, 2012). The
broad field is one, which has been broadly studied. It is examined and reviewed by
(Wahyuningsih and Chris Dubelaar (2004), Lennart Schirmer (2007) In their investigations, they
have inferred that companies need to identify each segment of consumers to satisfy their
shoppers, whether they are passive, rational-active, or relational-dependent consumers.
Customer satisfaction is a function of the contrast between the recognition of previous customer
expectations and purchases the same service (Oliver, 1980; Anderson & Sullivan, 1993). The
fact that more and more high-value customers in the long term and will bring significant benefits
to regulate the retail trade with the most significant revenues (Zeithaml, Berry, & Parasuraman,
1996; Cronin, Brady, & Hult, 2000, Aaker & Jacobson, 1994). Studies have emphasised the
importance of the relationship between quality of service and customer satisfaction (Cronin and
Taylor, 1992). If the retailer can evaluate the purchasing behaviour and its recognition of the
client using the experience in the field of quality retail would enable long-term relationship.
Besides, for the customer loyalty, retail organisation always require to create and sustain good
quality and better services. (Dabholkar, Thorpe, and Rentz, 1996), (Oliver, 1980; Boulding,
Kalra, Staelin, & Zeithaml, 1993; Bahia, Paulin, & Perrien, 2000; Homburg, Koschate, & Hoyer,
2006; Jayasankaraprasad & Kufar, 2012).
A research executed by Christensen 1999, notes that out shopping is inversely associated with
the size of the town of residence. Some researchers have observed shopping as a leisure activity
(Jackson 1991, Newby 1993). Other relevant studies addressed the interaction between the
physical infrastructure and consumers’ choice of retail outlets. Fernie viewed at the retail shifts
in the United Kingdom and included a reflection of the logistical consequences of the
advancements. The Robert V Kozinets & John F Sherry (2002) and Dawson John (2000) has
described the flagship brand stores as a frequently accepted venue employed by marketers to
develop connections with purchasers. Besides, it was asserted that, as consumer move notably
into an experience economy in the new millennium, retailers are cultivating the flagship brand
store into new designs such as the themed retail kind market. Aforementioned unique form not
only encourages a more engaging experience of the brand’s essence but also meets purchasers
looking for relaxation beside their purchasing.
In addition, Al Kathery (2011) expected that the behaviour of Saudi Arabia shoppers different
from the claim that so far, 60% of consumers purchased from supermarkets and hypermarkets,
about 6% of the purchase of the small shop. Currently, in addition to the rapid growth of online
shopping, a number of retailers that sell goods and services online and it became the leading
channel to expand the market locally and internationally (Alam and Elaasi, 2016).
Various investigations accentuate the probable coexistence of different store formats, and others
point out the relationship between the type of store and the type of products. These studies show
that, while specialized and traditional stores remain preferred for fresh products, hypermarkets
are preferred for shopping in general, and for frozen food, groceries and beverages.
According to the study done by the (Abunar & Alam, 20161), it was discovered that buyers were
having different opinion towards products availability and price charged by the organized retailer
during shop. The result indicates that customers check product quality first and foremost
significant concern when they consider to buying the products from the super/ hypermarket
(Abunar & Alam, 20161)”. Another study investigates that buyers were having different opinion
towards products availability and price charged by the organized retailer during shopping. The
reach of supermarket and abilities to supply all the demanded things by the supplier to the
respondents had given more attention to visit the shop. The competitive price and the selection
of assets are the auxiliary factors to the Saudi consumers (Abunar & Alam, 20162). Additionally,
it has been concluded that retail buying is dependent on various factors like socio-economic,
changing income profile, changing the role of women, age factors and finally dynamic role of the
banking system - make an instrumental impact on organized retailing in KSA. Besides, the retail
sector will be the first successor to increase within the KSA at a regional level, as shopper
choices move via smaller firms to large firms like supermarkets and hypermarkets.
general, there is still room for to identify and measure the pattern of the shopper buying
behaviour and its success factors to achieve the goals the marketer. In fact, there are research
gaps on the study of consumers and their shopping patterns in the literature, and it does not cover
yet in detail especially to the visiting and shopping pattern of the shoppers in KSA.
Consequently, the present study is an attempt in this direction.
✓ Ho1: There is a no relationship of consumer shopping schedule with working status, and
with income.
Ha1: There is the relationship of consumer shopping schedule with working status and Income.
✓ Ho2: There is a no variation in retail shopping Location preferences with the income of the
consumers.
Ha2: There is a variation in retail shopping Location preferences with the income of the
consumers.
✓ Ho3: There is no relation to the preferred distance of retail shopping with working status
of consumers.
Ha3: There is the healthy relationship in the preferred distance of retail shopping with working
status of consumers.
3.Educational
Graduate degree 92 0.434 <.063
Level:
High School 10 0.047 < .001
More than graduate 76 0.358 < .001
Undergraduate
34 0.160 < .001
degrees
4.Working Governmental
44 0.208 < .001
Status: employ
Private employ 126 0.594 <.007
Self-employed 8 0.038 < .001
Student 26 0.123 < .001
Unemployed 8 0.038 < .001
Non Saudi
5. Nationality: 48 0.226 < .001
(Expatriate)
Saudi 164 0.774 < .001
Less than 5,000 16 0.075 < .001
6.Monthly
11000-15000 52 0.245 < .001
family income
16000-20000 46 0.217 < .001
level (in S.R):
21000-25000 44 0.208 < .001
6,000-10000 24 0.113 < .001
Above 25000 30 0.142 < .001
7.Region AlMadinah
6 0.028 < .001
(Province): Munawwarah
Al Qassim 2 0.009 < .001
Al Riyadh 8 0.038 < .001
Al-baha 2 0.009 < .001
Eastern Province 6 0.028 < .001
Jeddah 36 0.170 < .001
Jordanian 2 0.009 < .001
Makkah 149 0.703 < .001
(Abunar & Alam, 2017)
From the Table 1, the demographic information of the respondents can be seen. A percentage of
75.5% of the total sample (N=212) were male and the rest of the sample 24.5% were female.
Majority 36.80% of the respondents belongs to the age group range 26-35 years followed by 36-
45 age range 30.2%, between 46-55 ages range 13.2%, less than 25 age 11.3% and above 56 age
was 8.5% respectively. In conclusion, about 80% of the respondents belong to the range between
26-55 years of the age group. Educational level of interviewees was most of them graduate
degree 43% followed by high graduate degree 35.8%, holding undergraduate degree 16% and
very few had high school passed 4.7%. Regarding the job status of the Respondents’ it can also
be seen in table 1 that majority 59.4% were private employed followed by government employed
20.8%, the student 12.3%, and the rest were unemployed 3.8% of the respondents. Furthermore,
the above table shows that the income levels of the participants; more than 80% of the
participants belong to the monthly family income range of higher than11, 000/- SR and more.
Less than 20% of the respondents belong to the regularly less than 11000 SR of their monthly
family income. This sequence shows that the majority of the population belongs to the higher
middle-income class of the society. As far as geographical location is concerned majority 87.3%
belongs to the Makkah region followed by Al Riyadh 3.8%, Al Madinah Munawwarh, Eastern
Province was 2.8% respectively of the sample size (Abunar & Alam, 2017).
From the figure 1, it was affirmed that quality of the product (81%) was highly preferred
consideration by the customers followed by price of product (58%), offers with the products
(32%), product reputation (brand image) (24%), Durability of the product (18.9%) and then post-
purchase services (14.2%), packaging type (11.3%) and others factors (0.9%) were selected by
the consumers with total multiple selection. From this finding, it is further stated that 80% of the
sample respondents have given the important factors of the shopping considerations to the
quality of products, price offers with the products and brand image of the products with the
household’s items. It is 33%, 24.17%, 13.33%, and 10%, respectively. Followed by the
durability of the products (7.87), post-purchase services (5.97%), and packaging (4.71%). Hence
it also proves the study was done (by Salah and Alam in the year 2012) that quality of the
households products should be given highest important to retail sectors, the price (cost of the
product) and shall be considered to attract for more purchase by the retailers. This finding also
validates the previous investigation done by the researchers in this area.
Figure 2, indicates that majority of the shoppers' schedule to visit for shopping is once per weak
followed by once per month. Approximately one per fortnightly and only very meagre
percentage of respondents showed their intention that they visit the shop daily in this order 50%,
32%, 12%, and 4.7% respectively. Besides, it can be seen that 82 % of the shoppers visit the
retail shop for their household needs either once per weak or once per month. From the table 2; it
can be investigated that the respondents visiting the once per week and once per month schedule
basis are employed person who has their job status in private sectors or government sector. They
are money-earning people. Hence, it shows the trend that rare items like foodstuff (convenience
product) and the small money involved items they use to visit every weekend and for further
needs that can be postponed further to wait for the salary, they visit the monthly shop basis. It is
the excellent indication for the retail marketers who sold household items they can take the
benefit of this trend. The marketer can attract the customers through offers and price caring on a
monthly basis. As the shoppers have their monthly salary basis so this is the excellent time to
grab the attention of customer to take their attention mainly for the shopping products hence the
sales offers shall be used for the shopping products during the last week of the month and the
first week of the month. The majority of the respondents who visit for the shop weekly and
monthly basis they belong to the income range of more than SR 5000/- earnings. It is interesting
to say that the respondents who have less than SR 5000/- earning monthly they do not show any
trends in visiting schedule shopping. They are visiting for shopping with the entire schedule
almost identical pattern showing for them (See the Table: 3). Thus, it can be advised that
marketers should attract the shopper of less than five thousand Saudi Riyal monthly earnings
always. Moreover, for above income group of the shoppers, any offers and the attraction measure
shall be weakly for the daily needs products and the shopping products monthly basis will be
highly efficient to grab the customer satisfaction and as well as the benefit to the marketers.
Ho1: There is a no relationship of the consumer-shopping schedule with working status, and with
the Income of the consumers. The Chi-square independent test calculated p-value is < .001 for
both variables (See the Table 2 and Table 3). The result value is less than the table value that is
significant at p≤0.05. Therefore, it can be verified that there is an essential relationship of the
consumer-shopping schedule with working status, and the Income of the shoppers, so the null
hypothesis is rejected, and alternative hypothesis will be accepted.
Table 2: Respondents shopping schedule relation with working status for the
shopping of household goods
How many times do you go for
household goods shopping?
Approximately Once
What is your current Once per
once per Daily per Total
working situation? week
fortnight month
Governmental
6 6 10 22 44
employ
Private employ 18 2 32 74 126
Self-employed 0 0 4 4 8
Student 2 2 16 6 26
Unemployed 2 0 6 0 8
Total 28 10 68 106 212
Chi-Squared Tests
Value df p
Χ
38.97 12 < .001
²
N 212
Table 3: Respondents shopping schedule relation with working status for the
shopping of household goods
How many times do you go for household
goods shopping?
Once Once
Your monthly family Approximately
Daily per per Total
income level (in S.R). once per fortnight
month week
Less than 5,000 2 4 6 4 16
6,000-10000 0 0 6 18 24
11000-15000 10 0 16 26 52
16000-20000 6 4 18 18 46
21000-25000 4 0 16 24 44
Above 25000 6 2 6 16 30
Total 28 10 68 106 212
Chi-Squared Tests
Value df p
Χ² 36.83 15 0.001
N 212
21000-25000 16 2 26 0 44
Above 25000 4 4 22 0 30
Total 76 22 110 4 212
Chi-Squared Tests
Value df p
Χ² 48.15 15 < .001
N 212
The Figure 3, revealed that the majority of the respondents preferred to buy household goods
from the stores that were near to the home (51.9%). 35.5% followed respondents said that it does
not matter to them, 10.4% stated that they just prefer the way and very less (1.9%) of the
respondents said on the way will be preferable to them. The result has the apparent indication
that the organised retailers should try to open their centres near to residential location where
people have their houses, and it should be considered that opening of the retail shop is on the
regular way is desirable by the respondents. This result also indicates that for the convince items
of household retailers shall have the small branches inside every residential location so the
customer can visit the stores and do shop without using much time and efforts. Moreover, this
may be the hot trend and favours of the local sellers who sell and wish to be an entrepreneur in
this field.
Ho2: There is a no variation in retail shopping Location preferences with income of the
consumers. The Chi-square independent test calculated p-value is < .001 (See Table 4) and the
result value is less than the table value that is significant at p≤0.05. Therefore, it can be assumed
that there is a highly significant variation in retail shopping Location preferences with the
income of the consumers. Thus, the null hypothesis is rejected.
Table 5: Respondents preferable distance relationship with the working status for
household shopping
What is your preferred distance for household
shopping?
More
What is your current working 2-4 4-6 6-8 8-10 Less than
than 10 Total
situation? K.M K.M K.M K.M 2. K.M
K.M
Governmental employ 18 4 4 6 8 4 44
Private employ 50 24 10 4 32 6 126
Self-employed 0 6 2 0 0 0 8
Student 12 0 0 4 8 2 26
Unemployed 6 0 2 0 0 0 8
Total 86 34 18 14 48 12 212
Chi-Squared Tests
Value df p
Χ² 55.06 20 < .001
212
Figure 4, revealed that more than 60% of the shoppers preferred the household shopping distance
less than 4 kilometers to travel. Most Preferable distance in kilometer was between 2-4
kilometers (40.60%), followed by less than 2 kilometers (22.6%), 4-6 kilometers (16%), 6-8
kilometers (8.5%), 8 to 10 kilometers (6.6%) and more than 10 kilometers (5.7%) respectively.
In addition, it was noticed that 70% of the respondents stated that prefer to shop for the
household god within the 6 Kilometers of the distance from living places. It is further
investigated that majority of the private employees and government employ mostly prefer to
shop for their household items less than four kilometers of distance from their residence. It is
also interesting to indicate that there is the visible sign that self-employed have selected their
preferable distance of shopping Centre within the range of 4 to 8 kilometers for it. Majority of
the students (almost 80%) also stated that preferable distance for shopping is within the range of
fewer than 4 kilometers from the residence (See the Table 5). From the result, this is the apparent
indication to the retail marketers that they should not go far more than 6 kilometers from the
residential sectors as the high percentage of the shoppers do prefer not more than 4 kilometers
distance from their residence for the purpose. Ho3: There is no relation to a preferred distance of
retail shopping with working status of consumers. The Chi-square independent test calculated p-
value is < .001 (See Table 5) and thus the result value is less than the table value that is
significant at p≤0.05. Therefore, it can be ascertained that there is a highly significant and
healthy relationship in the preferred distance of retail shopping with the working status of
consumers; therefore, the null hypothesis is rejected, and alternative hypothesis will be accepted.
Figure five confirmed that 64.2% respondents had given the first choice of excellent place to
household shopping were Hypermarket/ Shopping malls. Moreover, it was followed by
supermarket 61.3% of respondents, online and superstores have similar preferences by the
respondents (22.6% each), corner shop (17.9%) and not going for household shopping (13.2%)
respectively. From the trend, it is further investigated that majority of sampled respondents
(more than 80% of the sampled shopper) has their inclination to shop for retail shopping or
household shopping places. Also, it includes the hypermarket/ shopping mall (31.73% of total
sampled respondents), supermarket (31.73%), superstores (14.19%), and the corner shops
(8.86%) were the most visiting places for the household items by the respondents. This result is
an indication that shopper of Saudi Arabia has preferences for their shopping to visit the malls
and supermarkets that are a good indication for the organized retailers that they have the edge
over the on-going online buying trend (Alam, 2017) that is only the preferences of the tiny
percentage of respondents. Markets especially retailers of shopping products has very much
loyalty to sell their product through this platform. In addition, it can be stated that there is still a
significant gap between online shopping and offline shopping trend for the purchase of
household items by the consumers. From the trend, it can be stated that retail marketers can use
the proper strategy to gain the more attraction and the satisfaction of consumers and it may
achieve with the less effort as the online trend of household shopping is far from the retail
competition in Saudi Arabia. To gain more trust and received loyalty from the shoppers the
retailers can give and add online selling option to the household products will be a value-added
advantage for them and through this strategy, they could lead the said industry.
5. Conclusion:
The retail sector in Saudi Arabia is growing very fast. Developments in the retail food industry
have led to the growth of shopping malls, especially in major cities in Saudi Arabia. As a buyer,
it plays a vital role for any business. Therefore, understanding consumer buying behaviour is
essential to the success of new companies or supermarkets in general and especially of private
retailers. The product quality is highly appreciated by customers, followed by the price of the
product; it is presented with products, product reputation. It reveals that the quality of products
and price is of utmost importance to the retail sectors. Also, it concludes that buyers visit the
retail store to meet their local needs, both once per week or once per a month. Respondents who
visit once a week and once a month work in the private sector or the government sector. It is
suggested that the seller must attract customers through monthly offers and price sponsorship. As
customers have a monthly salary, so last and the first week of the month is an excellent time to
get the attention of customers, and it will be the most deciding concern to attract the customers.
Sales offers for purchase products should be used during the last week of the month and the first
week of the month. The majority of respondents preferred buying household products in stores
that are near their home, followed by, preferring only the road. The result has clear evidence that
retailers are trying to open their locations near a residential site where people have their homes
and neighbourhoods. Majority of buyers prefer a distance from shopping from home to less than
4 kilometers’ to travel. The most preferred distance in the kilometer between 2-4 km, followed
by less than 2 km. It is also recommended that most workers in the private sector and the
government sectors often prefer to purchase their retail items four kilometers from their place of
residence. Most of the students report that their preferred shopping distance was less than 4 km
from their place of residence. The respondents have the first choice to choose an excellent place
to buy household items from supermarkets/shopping malls, a supermarket, and shops of the
neighbourhood. Aforementioned is a good indicator of organized retailers, and they have an
advantage over the direction of online purchases. Also, it can be affirmed that there is still a
significant gap between online shopping and the trend to buy products currently to buy by
consumers. Retailers can use the right strategy to gain more popularity, gain more trust, loyalty
that retailers can achieve from customers and also add the option to sell products online of the
retail products so that it can give the value-added advantage for them. In this study the three null
hypothesis has been assumed to prove the validity of it chi-square statistical has been used after
analysis it is validated that all the mentioned three null hypotheses are rejected, and all the three
alternative hypotheses (none directional) are accepted.
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Author Profiles:
DR. Salah Mahmoud Abunar earned his Ph. D degree in Supply Chain Management from the
University of Liverpool in 2012. Currently he is a Dean College of Business Administration,
University of Business and Technology (UBT), Saudi Arabia. Dr. Abunar has been a member of
evaluation committee for establishing M.Sc. program for engineering college and Vice president
of financial committee for Alquran & Alhadeeth competition for Islamic Families in UK,
Organized by Saudi Embassy. He has been served as president of the University delegation to the
Annual conference for international universities supervised by Ministry of Education 2015. He
has served as a member of many reputed committees and councils during his career. Email:
salah@ubt.edu.sa
Dr. Mohammad Zulfeequar Alam completed his Ph.D. Degree from Aligarh Muslim
University, Aligarh (AMU), India, 2005. He is currently serving as Assistant Professor, Dept. of
Marketing, University of Business & Technology (UBT), Kingdom of Saudi Arabia. He has
been served as Head of Department of Management Studies and deputy controller of
examination in Sacred Heart Degree College on behalf of Kanpur University in 2007. Dr. Alam
was the Founder Head of the Dept. of Management Studies in Jahangirabad Institute of
Technology, India. Dr. Alam has authored a book, he has to his credit a number of research
papers published in various reputed journals and attended a number of workshops/ conferences
of national and international level. Dr. Alam has been editorial board member/ reviewer of
several committees/ journals at the national and International level. Email:
zulfeqarm@ubt.edu.sa