COMPARING CONSUMER PERFECTIONS OF CHAIN AND TRADITIONAL CONVENIENCE STORES

Abstract

Thai traditional grocery stores face increasingly intense competition from modern trade retailers such as discount stores, supermarkets and chain convenience stores.  This study explores the supply chains of traditional grocery stores and chain convenience stores, and consumer perceptions of three store attributes and their impact on customer intention to select a store.  A business that understands the attributes that customers highly value can gain a competitive advantage.

This study used the qualitative method of interviews with store owners or managers, and the quantitative method of a survey questionnaire completed by customers.  The result indicates that only store standardization and trust in a store brand have a significant relationship with customer intention to select a retail store, while the other factors of product variety and assortment have no significant relationship.

Customers also have a different perception of the two types of operational management.  The marketing channel of chain convenience stores is controlled and managed by a structured franchise system, while that of a traditional grocery store is based on the experience of the store owners in dealing with traditional wholesalers and distributors.