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Consumer Satisfaction with Local Retail Diversity in the UK: Effects of Supermarket Access, Brand Variety, and Social Deprivation

Author

Listed:
  • Ian Clarke

    (University of Edinburgh Business School, 29 Buccleuch Place, Edinburgh EH8 9JS, Scotland)

  • Malcolm Kirkup

    (University of Exeter Business School, Streatham Court, Streatham Campus, Exeter EX4 4ST, England)

  • Harmen Oppewal

    (Department of Marketing, Faculty of Business and Economics, Monash University, Caulfield East, VIC 3145, Australia)

Abstract

Levels of concentration in the grocery sector have led to concerns about reduced diversity of local retail provision and its potential negative effects on consumer welfare and choice. Using empirical evidence from a study of consumer perceptions of retail choice across nine purposefully sampled neighbourhoods in the city of Worcester in the UK, the paper illuminates consumer satisfaction with local provision and investigates how satisfaction varies with the local mix of grocery stores. The study adopts a stated-preference approach with realistic but hypothetical scenarios being presented to consumers in which the level, form, brand composition, and accessibility of local retail provision is systematically varied to gauge the sensitivity of householders in different types of neighbourhoods to variations in local retail assortments. The contributions of the paper are reflected in three main findings: (1) residents value having a large supermarket close by and reveal that they value diversity of provision rather than overconcentration; (2) consumers in deprived areas overall display greater satisfaction for the same offer than consumers in less deprived areas; and (3) although small stores in a local store assortment significantly contribute to reducing dissatisfaction with the local retail offer, they contribute little to achieving higher levels of consumer satisfaction. The study stresses the need for planners and policy makers to maximise choice and welfare through both the number and the diversity of stores in local neighbourhood areas.

Suggested Citation

  • Ian Clarke & Malcolm Kirkup & Harmen Oppewal, 2012. "Consumer Satisfaction with Local Retail Diversity in the UK: Effects of Supermarket Access, Brand Variety, and Social Deprivation," Environment and Planning A, , vol. 44(8), pages 1896-1911, August.
    • Handle: RePEc:sae:envira:v:44:y:2012:i:8:p:1896-1911
    DOI: 10.1068/a44310
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    References listed on IDEAS

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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. Wang, Yingli & Touboulic, Anne & O'Neill, Martin, 2018. "An exploration of solutions for improving access to affordable fresh food with disadvantaged Welsh communities," European Journal of Operational Research, Elsevier, vol. 268(3), pages 1021-1039.
    3. Rudkin, Simon, 2015. "Supermarket Interventions and Diet in areas of Limited Retail Access: Policy Suggestions from the Seacroft Intervention Study," MPRA Paper 62434, University Library of Munich, Germany.
    4. 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).

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