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Save or (over-)spend? The impact of hard-discounter shopping on consumers' grocery outlay

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  • Gijsbrechts, Els
  • Campo, Katia
  • Vroegrijk, Mark

Abstract

An increasing number of consumers have come to patronize a hard discounter (HD) to save on their grocery budget. Given the HDs' rock-bottom prices, a complete switch from the traditional supermarket (TS) to the HD format would, indeed, substantially reduce grocery spending. However, consumers typically visit the HD on top of a TS, leading to a more complex purchase allocation and decision process. In addition to limiting the potential savings to part of the basket, these multiple store shopping patterns may therefore result in depletion of self-control resources and to self-licensing, consumers using realized savings to justify additional indulgent purchases. In this study, we explain and empirically analyze the effect of HD patronage on consumer spending, taking the selected shopping pattern (single versus multiple stores, visited on separate versus combined shopping trips) into account. To this end, we use scanner panel data on households' actual weekly purchase behavior. We also examine household differences in these effects, and relate them to household characteristics.

Suggested Citation

  • Gijsbrechts, Els & Campo, Katia & Vroegrijk, Mark, 2018. "Save or (over-)spend? The impact of hard-discounter shopping on consumers' grocery outlay," International Journal of Research in Marketing, Elsevier, vol. 35(2), pages 270-288.
    • Handle: RePEc:eee:ijrema:v:35:y:2018:i:2:p:270-288
    DOI: 10.1016/j.ijresmar.2018.01.004
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    Cited by:

    1. Yokoyama, Narimasa & Azuma, Nobukazu & Kim, Woonho, 2022. "Moderating effect of customer's retail format perception on customer satisfaction formation: An empirical study of mini-supermarkets in an urban retail market setting," Journal of Retailing and Consumer Services, Elsevier, vol. 66(C).
    2. Bombaij, Nick, 2021. "Effectiveness of loyalty programs," Other publications TiSEM 095c506d-5b5c-4ea3-9b41-a, Tilburg University, School of Economics and Management.
    3. Bombaij, Nick J.F. & Dekimpe, Marnik G., 2020. "When do loyalty programs work? The moderating role of design, retailer-strategy, and country characteristics," International Journal of Research in Marketing, Elsevier, vol. 37(1), pages 175-195.
    4. Lili Jantyik & Áron Török, 2020. "Estimating the Market Share and Price Premium of GI Foods—The Case of the Hungarian Food Discounters," Sustainability, MDPI, vol. 12(3), pages 1-15, February.
    5. van der Plas, Joep & Dekimpe, Marnik G. & Geyskens, Inge, 2024. "Mind the gap: National brands’ sensitivity to price and line-length differentials at hard discounters versus conventional retailers," Journal of Retailing, Elsevier, vol. 100(2), pages 199-216.
    6. Garrido-Morgado, Álvaro & González-Benito, Óscar & Martos-Partal, Mercedes & Campo, Katia, 2021. "Which Products are More Responsive to In-Store Displays: Utilitarian or Hedonic?," Journal of Retailing, Elsevier, vol. 97(3), pages 477-491.
    7. Hunneman, Auke & Verhoef, Peter C. & Sloot, Laurens M., 2021. "The impact of hard discounter presence on store satisfaction and store loyalty," Journal of Retailing and Consumer Services, Elsevier, vol. 59(C).
    8. Bonfrer, André & Chintagunta, Pradeep & Dhar, Sanjay, 2022. "Retail store formats, competition and shopper behavior: A Systematic review," Journal of Retailing, Elsevier, vol. 98(1), pages 71-91.
    9. Moodley, Raymond & Chiclana, Francisco & Caraffini, Fabio & Carter, Jenny, 2020. "A product-centric data mining algorithm for targeted promotions," Journal of Retailing and Consumer Services, Elsevier, vol. 54(C).

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