Luận văn thạc sĩ UEH factors affecting store image and the choice of convenience store

Factors Affecting Store Image And The Choice Of Convenience Store Truc, Bui Thanh Quang, Ho Nhut Vi, Tran Thi Tuong International University, Vietnam National University HCMC, Vietnam Abstract By the end of 2017, General Statistics Office shows total retail sales in the country reached 3934.2 trillion dongs ($171 billion), increased 10.9% compared to the same period of 2016 The research focused on the questions of what are the factors that affect store image and customer’s choice of convenience stores, and how these factors affect them The study used descriptive analysis and quantitative methods (the survey has sample size n = 252 comprising of students, officers and customers who had purchase experience in any convenience store in Ho Chi Minh city) The final conceptual model was based on various past researches related to the issue After collecting data and testing with SPSS v.21 and AMOS, the research found out that consumer socialmindedness have a positive effect on all the four factors of store image while world-mindedness just impact three factors: purchase experience, augmented experience and repeat purchase experience Furthermore, purchase, visit, augmented and repeat purchase experience all had a positive impact on customer choice Although subject to some constraint such as time and resources, the research can help companies have a general understanding of what customers want and help them attract more customers Keywords: convenience store, store image, consumer social-mindedness, consumer world-mindedness, purchase experience, visit experience, augmented experience, repeat purchase experience and customer choice Introduction High growth rate and large population make Viet Nam become one of the most attractive retail markets in the world More and more chain stores, as well as new brands, enter the market to look for opportunities and tapping the great potential With the remarkable growth of the retail market, convenience stores are showing an impressive performance with high revenue and the expansion of outlet networks in big cities such as Ho Chi Minh and Hanoi It also means that the customers are confronted with multiple options for where they can shop and where they can enjoy their food The choices they make among many brands are based on some criteria that are not always clear People may choose a store because of its high quality, its better price, its diversified goods or simply because they were in need of shopping at night and there it was This may create a fierce competition for market share Those companies need to consider how to persuade the customer to choose their store among a dozen brands To impress customers, make people satisfied, they must make their services at the higher level compared to competitors Understanding the factors that determine store image and the customer’s choice is important for the successful strategy of every convenience store The more they learn about those factors the better they are able to meet the decision criteria and boost occupancy and rate The main objective of this research is to identify factors affecting store image and choice of customers and 732 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com construct a conceptual model from them From those results, companies can improve stores image and attract more customers Literature Review 2.1 Research concepts and definitions 2.1.1 Convenience store According to Kirby (1976), a convenience store is a shop which has a smaller size than the supermarket, providing most of the daily goods and household requisites, usually located in high population neighborhood Baron et al (2001) said it has 3,000 square feet size (280 m2) and a “wide and shallow” range of product The conception of a convenience store is described in various ways like long operating hours (serving over 16 hours a day, six or seven days a week) and a self-service approach for quick shopping For detail, the product range meets the urgent needs and impulse buying of the local consumers (Jones, 1986) but does not give the wide choice in brands or sizes like a supermarket (Guberman, 1971) On average, prices are higher than in supermarkets and there are not many good foods for health (Guy, 2004; Liese et al., 2007) Some stores also provide groceries, vegetables, fresh fruit, frozen goods, fast food, small household goods and newspapers (Jones, 1986) Dairy, alcoholic drinks and tobacco are the most popular products (Kirby, 1976) Convenience stores seem to satisfy consumers when they want to achieve high quality, convenience, and service, combined with the efficient use of their purchase time (Kirby, 1976) One of the advantages is that the average time people spend in a store is only three or four minutes (Brown, 1989) It also becomes a good choice to for customer who does want to travel so far (Lorch and Smith, 1993) These stores are not only wellorganized small stores but also are considered as a large retailer supplier with basic good (Kirby, 1986) Young consumers are using it as a "shopping habitat" to buy drinks and food and their decisions imply temporal, social and advertising activities (Marshall, 2016) 2.1.2 The market of convenience stores in the world Since the first time it appears in Texas in 1927 (Kirby, 1976), the US retail market has paid much attention to the development of convenience stores It grew rapidly in the United States in the late 1960s (Jones, 1986) As Americans expanded into the suburbs, the important of the store became more distinct (Vastine, 1991) Due to the low population, there are several supermarkets in the countryside, but most of them are convenience stores compared to urban areas (Bustillos et al., 2009) In Japan, the convenience store has developed strongly for more than 20 years, providing a legend in the Japanese retail industry (Kunitomo, 1997) Some operational methods which are supported by the widespread use of advanced technology systems that help them manage to redefine their courses (Sparks, 1995) The parking space is the difference between a shop in the United States and Japan According to Terasaka (1998), there is no parking in Japan Sato (2009) presents the different strategies that Family Mart and 7-Eleven Japan, the world's two leading convenience stores Family Mart has chosen a group management strategy, while 7Eleven Japan selects a policy as a single management strategy Han and colleagues (2014) reported that convenience store channel has the highest growth rate in Chinese retail market Some researchers also consider it as the same case of convenience stores in Taiwan (Hong et al., 2011) According to Chen and Ou (2009), Taiwan has the greatest number of shops in the world There are more than 9,000 convenience stores and for every 2,600 people, there is one person owns a store It is the main 733 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com channel which can offer consumers more quality and stable services (Tsai and Huang, 2012) Recently, a new kind of convenience store has emerged in Taiwan, which combining both shopping and dining These stores are described as "hybrid convenience stores" (Ming-Sung Cheng et al., 2009) 2.1.3 Market of convenience stores in Vietnam General Statistics Office shows that the size of the retail market has grown rapidly from $70 billion in 2010 to $158 billion in 2016 The retail market in Vietnam has increased in many forms, especially in the form of modern retail such as supermarkets, shopping centers, and large commercial centers In addition, shops, household business, street vendors are also growing Currently, the country has about 800 supermarkets and shopping centers, 150 trade centers, nearly 9,000 markets, 1,600 convenience stores and 2.2 million retail businesses across the region The growth of convenience stores and mini markets in the past few years is quite impressive According to a research by Kantar World Panel last year, more than one-third of Vietnamese household visit convenience stores or mini markets 10 times per year Nielsen said that the growth rate of the modern retail channel from April 2016 to March 2017 is 7.7%, higher than the 6.1% of the traditional channel; the revenue growth rate of modern channels reach 6.3%, 1.34 times higher than traditional channels Despite the current fast-growing segment, this shopping channel still faces competitive pressures from the supermarket for the buying experience and variety of goods or from the traditional market for fresh products and good price In fact, modern retail in our country has grown slower than previously forecast, currently only accounts for about 25% of total retail sales (data from the Ministry of Industry and Trade of the Socialist Republic of Vietnam) High location fee, high costs, traditional shopping habits and consumption are the main reasons consumers not choose convenience stores and mini markets Therefore, it requires a rational strategy to develop in this market segment A typical convenience store in Vietnam covers an area of approximately 50-250m2 and offers a variety of basic products, including dairy, bakery products, detergents, household cleaning products, alcoholic beverages, soft drinks, tobacco products, fresh and frozen food, prepared meals, as well as health and beauty products On average, it manages about 1000-1500 codes Besides, the consumer can pay for electricity, water, telecommunications, cable TV or use ATMs at the store Compared to other types of stores, working hours are more extended, operating approximately 24 hours a day and days a week There are about 50-150 customers visit such a store per day Appeared in Vietnam from 2005 but not many years, the convenience store model really developed Especially in 2015, this segment of the market "blooms" with the participation of many investors at home and abroad Foreign businesses such as Family Mart (Japan), B’smart (Thailand), Ministop (Japan), Circle K (USA), Shop & Go (Singapore) continually expand the system and form large chain stores According to Q&Me Vietnam Market Research’s report, in particular, Circle K has 211 stores, B’smart has about 150 stores, and Shop & Go has 46 stores Domestic enterprises also continuously expand the chain, of which, the strongest is Vingroup After almost years of building and developing the system, VinMart+ has about 1,000 business locations Saigon Coop also contributes to the market by releasing its new business model Coop Smile In October 2017, they open 60 stores all over Ho Chi Minh City (Figure 1) In Figure 1, the geographical distribution of convenience stores is presented The total number of convenience stores in 2017 is 1,561 while 927 (59.39%) are operating in Ho Chi Minh City Ha Noi has 469 stores accounting for 30.04% It is obvious that the market of convenience stores is highly concentrated in the two major cities (89.43%) compared to all the other regions 2.1.4 Store image There are many definitions of store images Keaveney and Hunt (1992) view store image as a combination of individual cognitive and emotional responses They also emphasize that prior customer experience is important to the image Similarly, Martineau (1958) describes it as the way in which the store is defined in the 734 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com mind of the consumer, separate from qualities and psychological characteristics In another study, image was defined as the set of perceptions and attributes associated with a store, it is an important factor to predict customer choice (Grewal et al 1998) Favorable storefront development is an important aspect of the retailer's ability to maintain and develop their market segment (Steenkamp and Wedel, 1991) Store images play an important and can influent the consumers The visual assessment of the store, including the convenience factor in the store, is closely related to customer satisfaction over the air factor and the sale does not have a significant impact (Theodoridis and Chatzipanagiotou, 2009) Marketers also mention the importance of how products are introduced inside the store, so they can be easily ordered or even attract customers to buy them (Schwenke et al., 2010) On the interior of the store, Panigyrakis et al (2009) argue that proper product placement, using comfort criteria and convenience (convenience in the store), affects the time spent inside the store Terblanche and Boshoff (2004) think that offering an in-store shopping experience (ISE), can help the retailer to position their stores with some factors ISE includes (i) handling complaints, (ii) internal storage environment, (iii) personal interactions, and (iv) value, diversity, and type of goods Fonseca (2011) classified the customer segment for the supermarket by two types of variables: behavior variables and base variables When customers spend their time in retail stores, near the house, close to the work, lower prices, brand diversity, product diversity, parking conditions, product quality, promotion, fast service, good service, store cleanliness, opening hours, consumption habit are considered "behavior variables” and "basic variables" are travel time, transportation methods, reason for purchase, access patterns, and frequency of usage A study in China think the service attitude, quality, reputation, payment efficiency, low price, breadth and depth of choice, store layout, internal environment, easy-to-find goods, membership services, opening hours, staff knowledge, decoration geographical convenience, advertising services and staff numbers are eighteen elements of the store image which may lead to the customer preference (Chang and Luan, 2010) 2.1.5 Customer choice It seems that the determinants that drive consumers to convenience stores are: impulse purchases, easy access, time pressure, shopping hours (Han et al., 2014) Jones et al (2003) and Fitch (2004) have emphasized that convenience (in terms of reducing the time and effort of consumers to get a product) is a priority for the customer Moreover, according to Findlay and Sparks (2008), the most loyal customers are the ones who walk to visit the store In addition, Jones et al (2003) think that the provision of quality products and services contributed significantly to the retention of a store's customer base The main attributes that affect customers of convenience stores are prices, customer service, the variety of products and convenience (Panigyrakis et al., 2009) It should be noted that Skallerud et al (2009) shows that although customers can be loyal to a convenience store, they may visit a supermarket or even a supermarket 2.1.6 World mindedness Sampson and Smith (1957) appear to be the first one to evaluate the concept of the world in the spirit of world-mindedness There is a scale of 32 items content in eight concepts (i.e., government, immigration, religion, education, race, patriotism, economics, and war) Yaprak (1996) develops a tool to describe cosmopolitan consumers based on items related to organizational commitment and community and the tendency to identify themselves in a broader context This scale is built up from the world-mindedness scale of Sampson and Smith (1957); therefore, it relies on general measures, rather than on specific consumers, attitudes, and behaviors Here, in accordance with the definition of Hannerz (1990), a world-mindedness person is considered to reflect both "cultural openness" (i.e., acceptance of customs, ideas, and products from 735 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com other cultures) and "cultural adaptability" (i.e adapt to local customs and habits in another country) The term "world-mindedness" is used to differentiate this structure from previous cosmopolitanism measurement Recently, Nijssen and Douglas (2008) have identified consumer world-mindedness in terms of concern, openness, and acceptance of products and ideas from other cultures or regions in the world and accept the standards and values of these cultures without biased or prejudiced nationalism This is from Hannerz's (1990) view of a person who has world-mindedness is inclined or ready to engage with "other" and thus may open to different cultures (e.g looking for contrast rather than homogeneity) This is understood to be related to personality traits of openness to experience Nijssen and Douglas transform this concept into a consumer context that shows interest, openness, and acceptance of products and ideas from other cultures or parts of the world Consumers with world-mindedness are also more willing than other consumers to try foreign goods, both at home and when visiting these cultures, as a means of learning and experience them 2.1.7 Social mindedness The early study about socially concerned consumers (Anderson and Cunningham, 1972) pay more attention to environmental issues, such as concern for air or water pollution, recycling, use of pesticides, conservation of energy volume and social inequality These studies often include the development of sociocultural and demographic profiles of socially conscious consumers as a potential basis for market segmentation Anderson and Cunningham (1972) think that environmental and social measurement include ecological concern index, the scale of ecologically conscious consumer behavior, and degree measurement of ethical and social responsibility In general, these measures are not customer-specific and can benefit from being more closely aligned with the consumer context According to Nijssen and Douglas (2008), consumer social-mindedness is related to the tendency to engage in socially, economically, and environmentally responsible behavior This implies interest in buying products manufactured under ethical, eco-friendly humanitarian conditions These customers tend to support small businesses in developing economies, so it can help to enhance their living standard In the context of consumption, social-mindedness consumers will have a positive attitude towards products that have been made in ethical labor practices as well as environmentally friendly products 2.2 Previous research Consumer world-mindedness, social-mindedness and store image Nijssen and Douglas (2008) developed a model of consumer world-mindedness and social-mindedness and examine their effect on store image In this study, they test image of three types of store: The Body Shop, fair-trade stores, and a grocery store with an imported food products section The result shows that consumers’ exposure to foreign cultures increases consumer world-mindedness and social-mindedness and that both have a significant impact on store image However, the degree of effect is not the same The Body shop – the environmentally and ecologically concerned cosmetics stores display a strong positive relationship with consumer social-mindedness It is explained that this brand demonstrates an image of using natural ingredients or no testing on animals which can appeal to customer effectively World-mindedness shows low result because this environmental friendly image is not unique and can be seen at other stores in the same segment Fair-trade stores are affected by both social-mindedness and world-mindedness This relationship is equally strong Like the outcome of The Body shop, women are more attracted to this kind of store World-mindedness express stronger than social-mindedness in the case of the grocery store with imported food section The authors conclude that consumer social-mindedness make customer have favorable image toward store which demonstrates ethical concern, especially in global context On the other hand, world-mindedness 736 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com impact the ones who have a positive attitude toward stores provide traditional product from other countries They also suggest that retailers will need to pay greater attention to such issues in choosing which products and brands to stock, how to display them, and ways to develop their store image (Figure 2, Appendix) Model of factors affecting store image and the choice of hypermarkets in Oman In this study, Belwal and Belwal (2017) compare two hypermarkets in Sohar, Oman: Lulu and Al Safeer They try to find out which one the customers prefer and the reason for this choice There are four main groups of factors have a positive relationship to customer choice: purchase experience, visit experience, augmented experience and repeat purchase experience The result gained from the respondents of difference in demographic reveals that the four components are the main factors impact the customer choice of hypermarket in Oman Based on it the comparison shows that Lulu hypermarket has a better store image than Al Safeer on all of the four groups However, consumers in Oman derive greater satisfaction in the purchase and visit experience than augmented and repeat purchase The findings are important because they indicate some genuine buying preferences of the customer in the context of store choice The authors also suggest the manager in the retail market focus on identifying factors and the underline variables in the process of development to acquire a higher level of store image and customer patronage 2.3 Concept of store image Belwal and belwal (2017) indicate the four factors contained in store image are purchase experience, visit experience, augmented experience and repeat purchase experience It is based on the conceptual framework of Kotler about product or service which offers benefits in classes: core, basic, anticipated, enhanced and product potential (Kotler, 1997) He also demonstrates an example of the customer expectation from a hotel room and it can be conceptualized for a supermarket or convenience store as a retail service provider Other researchers also categorize these benefits, tangible products, and intangibles, either as core or intrinsic (Gronroos, 1978) Therefore, this study concerns these four main groups would represent the image of convenience stores and in each group, there are some dimensions to support and illumine them However, the contents may be different and adjusted to appropriate with the case of convenience stores The relationship and impact of store image toward other factors will be explained in more detail in the next parts 2.4 Consumer social-mindedness relation to store image In previous studies, retailers are starting to aware of increasing consumer exposure to have heightened environmental and social concern by adapting their products and build special stores for socially concerned consumers like stores selling organic products or natural food Stores with a wide range of products such as supermarkets or grocery stores sometimes react with environmental issues and globalization by increasing special friendly environmental products and social responsibility brands This is the proof for the new trend that products are not just used to satisfy essential needs, it represents the customer's perception of the world around them and the responsibility in every action that may affect the sustainable development of the community, in this case, it's daily shopping Consumers with social-mindedness attitude have strong ethical norms, therefore this research also expects convenience store can appeal them by offering favorable image with these kinds of products A full range of healthy and human right guarantee products can help them to create a friendly look and get support from those people This leads to the hypothesis: H1a: Consumer social- mindedness will be positively related to purchase experience H1b: Consumer social- mindedness will be positively related to visit experience 737 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com H1c: Consumer social- mindedness will be positively related to augmented experience H1d: Consumer social- mindedness will be positively related to repeated purchase experience 2.5 Consumer world-mindedness relate to store image Consumer world-mindedness is an openness to products from other culture or country Nowadays, this concept is so true for customers who are exposed to global trends through travel and international social network Foreign travel gives people a chance to contact directly with the lifestyle and product from other country and culture This trend is similar to different customs, habits, and artifact which can make them more willing to adopt or try products from these cultures Social networks also play an important role in the awareness of global issues and it leads to the increase in social interaction This help to enhance people’s knowledge and concern about norms and values of these cultures without nationalistic bias or prejudice Customers are interested in foreign products and would like to experience new things which come from new culture Different flavor, taste, characteristic or ideas is a great attraction for those people More than just seeking variety, they tend to appreciate and open to diverse products and brands Therefore, the research expects the store with an international image may lead to positive attitude from the customer Besides the local or traditional products, foreign goods can give them a new experience and arouse curiosity to attract them to come This suggests the following hypothesis: H2a: Consumer world-mindedness will be positively related to purchase experience H2b: Consumer world-mindedness will be positively related to visit experience H2c: Consumer world-mindedness will be positively related to augmented experience H2d: Consumer world-mindedness will be positively related to repeated purchase experience 2.6 Purchase experience relates to customer choice The results from the study by Belwal and Belwal (2017) suggest that purchasing experience is one of the key factors for store image, which can be seen from the perspective of service support, convenience shopping, quality products, varieties, after purchase services and courtesy extends by the participants during the purchase process Previous studies have also shown that product offerings and quality, product varieties such as organic and exotic products, and convenience are provided through self-scanning devices (Cho and Fiorito, 2010) is supposed to an important attribution These factors may be related to the level of “core and basic” benefits within the framework of Kotler (1997) that customers expect from supermarkets or convenience stores as a different type of retail format In the case of convenience stores, purchase experience contains product quality, variety, and shopping convenience which imply the way products are arranged and condition of inventory This factor focuses on products they provide to customers including fresh and packaged products The goods must satisfy the quality condition since it impacts directly the customers’ health Moreover, they should be arranged rationally for people to approach easily The stores need to restock product regularly to avoid a situation in which customer cannot find what they want By investing in and taking care of merchandises, retailers can have advantages over consumer choice And it is the hypothesis: H3: Purchase experience will be positively related to customer choice 2.7 Visit experience relates to customer choice According to Belwal and Belwal (2017), visit experience gives importance to parking facilities, cleanliness, merchandising, access to ATMs, and efficiency at payment counters This factor is considered as facilities that consumers expect while shopping from a particular supermarket and matching the groups of "stores" and "services" as defined by Amine and Cadenat (2003) 738 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com To make it fit this research, visit experience focuses on the parking area, cleanliness, facilities, and merchandise In merchandising element, there are some aspects will be examined, they are security in store, the attitude, and knowledge of staffs, whether they know enough about all the products to help customers and the store location This factor reflects the degree of convenience that store may offer to the consumer when they are shopping If they feel comfortable and please with the service, they might consider convenience store as a first choice So, the hypothesis is: H4: Visit experience will be positively related to customer choice 2.8 Augmented experience relates to customer choice Kotler (1997) refers to "augmented level" as additional services are added to the product Based on this concept, Belwal and Belwal (2017) show that these are additional efforts that a store needs to improve its reputation Advanced experiences include prayer rooms, better deals, advertising, promotions, and contests Among other demanding enhancements in all major retail formats is air conditioning (Belwal and Belwal, 2009), this is necessary, keeping the current rate of overheating in the region Some studies show that the promotion can provide information about the price, quality and brand image of the product The way given by promotion is handled in the minds of consumers ultimately leads to a favorable or unfavorable purchasing decision (Blattberg and Neslin, 1990) In Vietnam, prayer room does not suit our culture then it is not mentioned in the model The main elements are price, better deal, and promotion In this factor, the study examines whether the price is proportional to the quality and the customer's assessment of the amount of money they have to pay for a specific product Better price or deal may have a relationship to a favorable image in customers’ mind Discount and promotion campaign can represent the bargain that they want to get Therefore, showing them the practical benefit when shopping at the store is a good strategy to attract consumers This result in the hypothesis: H5: Augmented experience will be positively related to customer choice 2.9 Repeat purchase experience relates to customer choice The last factor is repeat purchase experience Belwal and Belwal (2017) assume that customers like a store with their next trip will create confidence This factor can be viewed from the perspective of consumer satisfaction and loyalty, as it evolves as a result of better value perception (Tsai et al., 2010) Focusing on the relationship between satisfaction and purchase intent, some studies suggest that greater satisfaction with an organization or supplier will reinforce the buyer's intent or service on later visit (Pereira, Salgueiro, & Rita, 2016) In this study, repeat purchase experience refers to the ability to maintain the quality of goods and services in the next visit of customers It examines whether the quality and the price are the same as the previous times The staffs can keep polite and friendly attitude toward visitors also play an important role This is the hypothesis: H6: Repeated purchase experience will be positively related to customer choice 2.10 Hypotheses In order to achieve the research aim, hypotheses are created to be tested Each of the hypothesis was devised based on past research, which is detailed in Table 1, Appendix The hypotheses of the thesis are shown below: H1a: Consumer social- mindedness will be positively related to purchase experience H1b: Consumer social- mindedness will be positively related to visit experience H1c: Consumer social- mindedness will be positively related to augmented experience 739 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com H1d: Consumer social- mindedness will be positively related to repeated purchase experience H2a: Consumer world-mindedness will be positively related to purchase experience H2b: Consumer world-mindedness will be positively related to visit experience H2c: Consumer world-mindedness will be positively related to augmented experience H2d: Consumer world-mindedness will be positively related to repeated purchase experience H3: Purchase experience will be positively related to customer choice H4: Visit experience will be positively related to customer choice H5: Augmented experience will be positively related to customer choice H6: Repeated purchase experience will be positively related to customer choice Methodology Conceptual model The conceptual model was composed using various other research in the past The model is shown in Figure 3, Appendix Research design and analysis First, the study tries to find out the problems that convenience stores are facing, the retail market situation and the competition within the industry From these statements, research objective decides what questions should be solved Next, the theoretical model is built a base on some previous related research and the secondary data To identify factors affecting store image and the choice of convenience stores, a survey is conducted by making a questionnaire and collecting data directly or via the internet The research using SPSS and AMOS software to analyze data SPSS software can test sample characteristics, descriptive statistics, reliability test, and exploratory factor analysis AMOS software is used to test confirmatory factors analysis, structural equation modeling, and bootstrap test to evaluate the degree of each determinant that affects customer choice Base on the result, some solutions can be proposed to improve the image of a convenience store and the customer choice Measurement Scale This research uses the Five-point Likert Scale to measure the 32 statements that represent the influence on Employee Loyalty on a scale from to 5, which is Strongly agree, is Agree, is Neutral, is Disagree, and finally, is Strongly Disagree Results Demographic Statistic between male and female genders are surveyed randomly, where male account for 36.1% and female occupies 63.9% of the sample Age Total sample size is 252 in which there are 41 respondents under 18 years old (16.3%), 95 people in the age of 18 – 25 (37.7%), 105 persons from 26 – 35 (41.7%), 10 persons from 36 – 55 (4%) and only persons over 55 years old (0.4%) 740 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Income The result also shows that there are 31.3% people have income under million, 20.6% respondents in the range of – 10 million, income over 10 – 15 million belongs to 18.3% customer and 29.8% persons over 15 million Consumer social-mindedness Consumer social-mindedness has statements about customers’ awareness of human rights, working condition, environment, and social responsibility The average Mean is 4.011 meaning that the respondents agree to all of the statements The statement “I feel that everyone should purchase environmentally friendly products” has the highest mean which suggests that a lot of consumers concerned about the environmental issue Consumer world-mindedness Consumer world-mindedness is about the customers’ cultural openness and adaptability Consumers have a neutral opinion of foreign products They not give too high or too low respect for products from other countries Purchase experience This factor reflects the quality and variety of products, shopping convenience The statement “It is easy to find the product in the store” has the most support, implying that convenience stores arrange their products rationally so people can easily approach what they need Visit experience Visit experience is about parking facility, infrastructure, cleanliness and merchandising Parking facility, infrastructure, cleanliness and merchandising all receive a high score from consumers Augmented experience Augmented experience includes better deal, advertising, and promotion Customers give the highest score to the statement “the store has a stable price” Repeat purchase experience In this factor, the research discusses the customers’ experience during the next visit, whether the store maintains the good quality, price or staffs’ attitude Most of the customers feel the service provided are always the same Customer choice Customers have to rate which factor is most important to them when choosing a convenience store “I always choose a convenience store with good location for me” gets the highest mean proves that customers appreciate the convenience of location the most Descriptive Analysis Many statistical tests were used to verify the data First of all, we used Cronbach’s Alpha to check the reliability of the data following the principle of (George & Mallery, 2003) After we have run the tests for all 741 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com data, we concluded that all data passed the reliability test and none was eliminated Next, we used Exploratory Factor Analysis to summarize the data, which shows the relationship between the groups of observed variables with hidden variables called factors Next, we used Confirmatory Factor Analysis to measure how well the collected variables can fit a model After data were verified, Hypotheses Testing were conducted The results of the Hypotheses Test (Table 2, Appendix) show that all the hypotheses are accepted at 5% of significant level except for H2b: Consumer world-mindedness will be positively related to visiting experience The H2b hypotheses should be removed to ensure the significance of the model The revised model is shown in Figure 4, Appendix Implications For Convenience Stores Examination of the parameter reveals that consumer social-mindedness and world-mindedness is significant in all four regressions involving store image This result confirms the hypotheses of the previous study that both constructs are related to consumer perception of store image (Nijssen and Douglas, 2008) Consumer social-mindedness leads to favorable attitudes toward stores demonstrating ethical concerns, particularly in an environmental context Nowadays, with the development of media and social network, this issue attracts more attention than ever Awareness about human rights and protecting the earth is enhanced through generations They can be willing to pay a premium price for fair-trade or ecologically friendly products Similarly, consumer world-mindedness is also associated with favorable attitudes toward store choice However, it is not a strong effect as expected People not give too high or too low respect for products from other countries It still depends on the kind of product and the manufacturing country Not all the foreign goods receive appreciation since some countries have an infertile reputation Moreover, Vietnamese merchandise these days can offer high quality with reasonable price which is a substantial competitive advantage Purchase experience is also a major factor for store image, which can be seen from high quality and prestigious brands This is understandable because customers believe that good branding products are more likely to be safer, healthier and more durable than unpopular brand products These determinants are important because health is a top concern nowadays The visit experience factor gives importance to the parking area, basic facility, and safety Even though a typical convenience store covers an area of approximately 50-250m2, the demand for parking space and tables for on-site dining are very high Some young customers consider the store as an ideal place to spend time or take rest then it should provide these facilities to attract them more Since it operates 24 hours a day, security matter plays a necessary role to protect customers, especially at night Augmented experience denotes the additional efforts needed to be made by stores to boost their image It contains discounts and promotional campaigns This retail channel usually has a higher price than others due to high operating cost Giving bargain can help to boost the store image and customer choice In repeat purchase experience factor, the research discusses the customers’ experience during the next visit, whether the store maintains the good quality, price or staffs’ attitude The result indicates that attitude and familiarity are the most concern A friendly staff can create a comfortable atmosphere as well as enhance the store reputation Consumers appreciate the polite behavior maintaining of employees every time they visit and suppose it as a true durable attitude not contemporary or occasionally Base on the findings above, conveniences stores need to concentrate on the factors which have a sustainable effect on store image which leads to positive decision to choose a specific brand of convenience store rather than other brands or other kinds of retail channels like a traditional market, grocery store, and even supermarket 742 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Firstly, companies should pay more attention to the origins of the products they supply, whether their stores specialize in ethical concern goods or not Offering favorite products or low prices is not enough to attract customers Marketers should pay attention to this aspect and exploit its strengths Specifically, they should have promotion strategy which expresses the support to organic and ecological goods These products should be displayed in specific and eye-catching locations Besides focusing on the merchandises, companies should incorporate human rights into the operations of their stores and organizations If the employees are guaranteed the basic rights, it will create the view of sympathy and receive support from customers Secondly, world-mindedness plays an equally important role in the store's image Although the survey results show that it has less impact on social-mindedness but that does not mean it has no effect The customers feel comfortable with the imported products and also have the opinion that the use of foreign brands will help to enhance their reputation Foreign products are particularly attractive to people who travel or have contact with other cultures They are very open and willing to accept these products and tend to view it as a brand value assertion of themselves In addition, most of the imported products create a positive image for Vietnamese Therefore, they are always preferable to domestic products However, because the impact of world-mindedness is not so great, companies should consider adopting these strategies If the company does not specialize in selling foreign products, then only import a few products to create a variety of store images, especially the products that young people favor In addition, it can be combined with social-mindedness by importing ethical concerned goods to increase the value of the store Foreign factors should also be applied in executing companies such as the professional attitude of employees towards every single customer Thirdly, creating a good image will have a direct impact on the customer's buying intent Retailers should pay more attention to the following factors On merchandise, they should be safe and always have new products to avoid boredom Foreign or organic, ecological products may be a good choice for it In addition, they should pay attention to the parking area and the cleanliness of the store Some customers may stay in the store for a long time, so it is necessary to provide good facilities Marketers should concern about the discount campaign or product offering As usual, the price at convenience stores is quite higher than others so occasionally offers a bargain for consumers is a practical strategy Limitation Because of time and resources shortage, the survey is just conducted in the office, university, and a few convenience stores Besides, one sampling method is collecting data on the internet somehow not present the whole, just a small part of the population Thus, the scope will wider and more accurate if it is expanded to most of convenience stores’ brand name located evenly in Ho Chi Minh City Conclusion The objective of this study is to identify the factors affecting store image and the choice of a convenience store Then it also evaluates the importance degree of each element The received result is used to propose a solution to enhance store image and improve customer choice In order to achieve these targets, a research model is constructed a base on some previous studies In this model, consumer social-mindedness and consumer world-mindedness are the two factors impact convenience store image (Nijssen and Douglas, 2008) Store image is supposed to include four groups, they are purchase experience, visit experience, augmented experience, and repeated purchase experience These groups and their elements have a positive effect on customer choice (Belwal and Belwal, 2017) Reference 743 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Amine, A., and Cadenat, S (2003), “Efficient retailer assortment: a consumer choice evaluation perspective”, International Journal of Retail & Distribution Management, Vol 31 No 10, pp 486-497 Anderson, W Thomas, Jr., and William H Cunningham (1972), “The Socially Conscious Consumer,” Journal of Marketing, 36 (July), 23– 31 Baron, S., Leaver, D and Oldfield, B.M (2001), “Beyond convenience: the future for independent food and grocery retailers in the UK”, The International Review of Retail, Distribution and Consumer Research, Vol 11 No 4, pp 395-414 Brown, L.G (1989), “The strategic and tactical implications of convenience in consumer product marketing”, The Journal of Consumer Marketing, Vol No 3, pp 13-19 Bustillos, B., Sharkey, J., Anding, J and McIntosh, A (2009), “Availability of more healthful food alternatives in traditional, convenience, and non-traditional types of food stores in two rural Texas counties”, Journal of American Dietetic Association, Vol 109 No 5, pp 883-889 Chang, E., and Luan, B (2010), “Chinese consumers' perception of hypermarket store image”, Asia Pacific Journal of Marketing and Logistics, Vol 22 No 4, pp 512-527 Chen, F.L and Ou, T.Y (2009), “Gray relation analysis and multilayer functional link network sales forecasting model for perishable food in convenience store”, 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“Cosmopolitans and Locals in World Culture,” in Theory, Culture and Society, Michael Featherstone, ed London: Sage Publications, 237–51 Hong, H.I., Dang, F., Tsai, Y., Liu, C.S., Lee, W.T., Wangc, M and Chen, P.C (2011), “An RFID application in the food supply chain: a case study of convenience stores in Taiwan”, Journal of Food Engineering, Vol 106 No 2, pp 119-126 Jones, M.A., Mothersbaugh, D.L and Beatty, S.E (2003), “The effects of locational convenience on customer repurchase intentions across service types”, Journal of Services Marketing, Vol 17 No 7, pp 701-712 Jones, P (1986), “The development of convenience stores in Britain”, The Service Industries Journal, Vol No 3, pp 392-398 Keaveney, S., & Hunt, K (1992) Conceptualization and operationalization of retail store image: A case of rival middle-level theories Journal of the Academy of Marketing Science, 20(2), 165–175 http://dx.doi.org/10.1007/BF02723456 Kirby, D.A (1976), “The convenience store phenomenon: the rebirth of 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attributes impact on consumer satisfaction”, 2nd Biennial International Conference on Services Orchestrating the Service Experience: Music to the Ears of our Costumers, 4-6 November, Thessaloniki Sampson, Donald F and Howard P Smith (1957), “A Scale to Measure World-Minded Attitudes,” Journal of Social Psychology, 45 (1), 99–106 Sato, Y (2009), “Strategic choices of convenience store chains in China: 7-eleven and family mart”, China Information, Vol 23 No 1, pp 45-69 Skallerud, K., Korneliussen, T and Olsen, O.S (2009), “An examination of consumers’ cross-shopping behaviour”, Journal of Retailing and Consumer Services, Vol 16 No 3, pp 181-189 Sparks, L (2000), “Seven-eleven Japan and the Southland corporation: a marriage of convenience?”, International Marketing Review, Vol 17 No 4, pp 401-415 Terasaka, A (1998), “Development of new store types: the role of convenience stores in Japan”, Geo Journal, Vol 45 No 4, pp 317-325 Terblanche, N.S., and Boshoff, C (2004), “The in-store shopping experience: a comparative study of supermarket and clothing store customers”, South African Journal of Business Management, Vol 35 No 4, pp.1–10 Theodoridis, P.K., and Chatzipanagiotou, K.C (2009), “Store image attributes and customer satisfaction across different customer profiles within the supermarket sector in Greece”, Journal European Journal of Marketing, Vol 43 Nos 5/6, pp 708-734 Tsai, P.C and Huang, J.Y (2012), “Two-stage replenishment policies for deteriorating items at Taiwanese convenience stores”, Journal of Computers & Operations Research, Vol 39 No 2, pp 328-338 Vastine, W.J (1991), “The convenience store industry in the 1990s and beyond”, International Journal of Retail & Distribution Management, Vol 19 No 6, pp 27-31 APPENDIX 744 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Figure 1: Convenience stores in Vietnam Figure Consumer world-mindedness, social mindedness, and store image 745 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Figure Conceptual Model Figure Revised model 746 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com No Hypothesis H1a Content Consumer socialmindedness will be positively related to purchase experience H1b Consumer socialmindedness will be positively related to visit experience H1c Consumer socialmindedness will be positively related to augmented experience H1d Consumer socialmindedness will be positively related to repeated purchase experience H2a Consumer worldmindedness will be positively related to purchase experience H2b Consumer worldmindedness will be positively related to visit experience H2c Consumer worldmindedness will be positively related to augmented experience H2d Consumer worldmindedness will be positively related to Author Nijssen and Douglas (2008) Belwal and Belwal (2017) Sampson and Smith (1957) Cannon and colleagues (1994) Yoon, Cannon, and Yaprak (1996) Hannerz’s (1990) Nijssen and Douglas (2008) Belwal and Belwal (2017) Sampson and Smith (1957) Cannon and colleagues (1994) Yoon, Cannon, and Yaprak (1996) Hannerz’s (1990) Nijssen and Douglas (2008) Belwal and Belwal (2017) Sampson and Smith (1957) Cannon and colleagues (1994) Yoon, Cannon, and Yaprak (1996) Hannerz’s (1990) Nijssen and Douglas (2008) Belwal and Belwal (2017) Sampson and Smith (1957) Cannon and colleagues (1994) Yoon, Cannon, and Yaprak (1996) Hannerz’s (1990) Nijssen and Douglas (2008) Belwal and Belwal (2017) Anderson and Cunningham (1972) Webster (1975) Lee and Holden (1999) Stones, Barnes, and Montgomery (1995) Roberts (1996) Singhapakdi et al (1996) Treise et al (1994) Nijssen and Douglas (2008) Belwal and Belwal (2017) Anderson and Cunningham (1972) Webster (1975) Lee and Holden (1999) Stones, Barnes, and Montgomery (1995) Roberts (1996) Singhapakdi et al (1996) Treise et al (1994) Nijssen and Douglas (2008) Belwal and Belwal (2017) Anderson and Cunningham (1972) Webster (1975) Lee and Holden (1999) Stones, Barnes, and Montgomery (1995) Roberts (1996) Singhapakdi et al (1996) Treise et al (1994) Nijssen and Douglas (2008) Belwal and Belwal (2017) Anderson and Cunningham (1972) 747 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com repeated experience purchase H3 Purchase experience will be positively related to customer choice 10 H4 Visit experience will be positively related to customer choice 11 H5 Augmented experience will be positively related to customer choice 12 H6 Repeated purchase experience will be positively related to customer choice No Hypothesis Content H1a Consumer socialmindedness will be positively related to purchase experience Consumer socialmindedness will be positively related to visiting experience H1b Webster (1975) Lee and Holden (1999) Stones, Barnes, and Montgomery (1995) Roberts (1996) Singhapakdi et al (1996) Treise et al (1994) Belwal and Belwal (2017) Heider and Moeller (2012) Panigyrakis et al (2009) Berry et al., 2002 Han et al.,2014 Jones et al (2003) Fitch (2004) Findlay and Sparks (2008) Belwal and Belwal (2017) Heider and Moeller (2012) Panigyrakis et al (2009) Berry et al., 2002 Han et al.,2014 Jones et al (2003) Fitch (2004) Findlay and Sparks (2008) Belwal and Belwal (2017) Heider and Moeller (2012) Panigyrakis et al (2009) Berry et al., 2002 Han et al.,2014 Jones et al (2003) Fitch (2004) Findlay and Sparks (2008) Belwal and Belwal (2017) Heider and Moeller (2012) Panigyrakis et al (2009) Berry et al., 2002 Han et al.,2014 Jones et al (2003) Fitch (2004) Findlay and Sparks (2008) Standardize regression weight p-value (level of significant 0.05) Conclusion Supported 0.376 *** Supported 0.466 *** 748 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com 10 11 12 H1c H1d H2a H2b H2c H2d H3 H4 H5 H6 Consumer socialmindedness will be positively related to augmented experience Consumer socialmindedness will be positively related to repeated purchase experience Consumer worldmindedness will be positively related to purchase experience Consumer worldmindedness will be positively related to visiting experience Consumer worldmindedness will be positively related to augmented experience Consumer worldmindedness will be positively related to repeated purchase experience Purchase experience will be positively related to customer choice Visit experience will be positively related to customer choice Augmented experience will be positively related to customer choice Repeated purchase experience will be positively related to customer choice Supported 0.28 0.004 Supported 0.409 *** Supported 0.266 *** Not supported 0.103 0.168 Supported 0.182 0.017 Supported 0.208 0.013 Supported 0.407 *** 0.493 *** Supported Supported 0.42 *** Supported 0.579 *** Table Hypothesis Testing 749 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com ... Conclusion The objective of this study is to identify the factors affecting store image and the choice of a convenience store Then it also evaluates the importance degree of each element The received... choosing which products and brands to stock, how to display them, and ways to develop their store image (Figure 2, Appendix) Model of factors affecting store image and the choice of hypermarkets in... support and illumine them However, the contents may be different and adjusted to appropriate with the case of convenience stores The relationship and impact of store image toward other factors