Consumer Behavior Grocery Store Analysis
- 1. + Consumer Behavior Grocery Store Analysis Joseph Avellino, Marc Ball, Tommy Chow, Seamus MacCrory, James Mulligan, & Zach Schwan
- 2. Background + of the Industry
- 3. + Background of the Supermarket Industry First true supermarket in US: King Kullen (1930) in Jamaica, NY2 Stop & Shop’s origins in the U.S. date back to 19143 Closeto 400 locations in the U.S., located in the Northeast3 Subsidiary of Royal Ahold (Dutch company)3
- 4. + Current State of the Consumer 46million people on food stamps according to US Department of Commerce4 7.9% unemployment rate (11/02/12)5 Over 62 million receive Social Security payments6 Urban vs. Suburban Environment?
- 5. + Advances in the Supermarket Industry • Self-Checkout Registers • “SCAN IT!” Self-Checkout System • Smartphone App
- 6. Study Design + And Rationale
- 7. Objective: • Supplement knowledge of industry background through qualitative + research • Use secondary and qualitative data to conduct a strategic quantitative study that will provide an understanding of consumers in the supermarket industry and identify opportunities for improvement
- 8. + Primary Data Qualitative Quantitative Online Feedback Observational Research Study the effects that store layout and signage have on Research Stop & Shop the behavior of consumers customer feedback on Google Maps and Yelp Questionnaire Open-ended questions Identify similar themes and focused on the buying behavior of specific age common complaints within groups comments Likert Scale Discover customer attitudes and identify opportunities for improvement
- 9. + Primary Data Evaluation 52 Questionnaires completed by Stop & Shop customers in store 85Likert Scales filled out by customers in store Information is entered into Excel spreadsheet, quantified, and analyzed
- 11. + Observational Research Price tag encourages consumers to buy in bulk Unit price of an orange is $1.00
- 12. + Questionnaire Results On Average: Customers 18-29 years old shop at grocery stores once every two weeks Customers 30+ years old shop at grocery stores once a week Mostcommon spontaneous purchases are snack foods and soft drinks Mostcommon complaints include not enough open registers and lack of parking
- 13. + Name brand products are higher in quality compared to the store’s brand.
- 14. + Name brand products are higher in quality compared to the store’s brand. Agree • 80% of customers surveyed have purchased store brands in the past • Only 48% say they regularly purchase Stop & Shop branded items
- 15. + I often use coupons with my purchase.
- 16. + I often use coupons with my purchase. Neutral • Only 40% of customers surveyed say they use coupons • 47% say they will try a new product if they have a coupon for it
- 17. + Sale items are displayed on the end of an aisle.
- 18. + Sale items are displayed on the end of an aisle. Agree • 56% of customers surveyed say they buy in bulk when there is a sale
- 19. + Self-checkout registers are more convenient than traditional registers.
- 20. + Self-checkout registers are more convenient than traditional registers. Agree • 52% of customers surveyed prefer self- checkout to traditional registers
- 21. + Stop & Shop Customer Loyalty 52% of customers surveyed say they shop at grocery stores other than Stop & Shop Biggest Competition: Trader Joe’s, Key Foods, & Walbaum’s 58% claim that Stop & Shop is their preferred grocery store
- 22. + Loyalty Program: Stop & Shop Card 65% of customers surveyed say they use their own card with their purchase 24% say they have the employee at the register use the store’s card 9% say they do not use a Stop & Shop Card 33% of consumers’ purchasing behavior not being tracked
- 23. + Use of Technology “SCAN IT!” System Smartphone App 84% of consumers 51% of customers surveyed claim to own surveyed are aware smartphones of the system Of these customers, only 20% had Only25% are actually downloaded the Stop & using it Shop app Only 8% actually found the app to be useful
- 24. Conclusion +
- 25. + Stop & Shop Consumers Store signage is effective at encouraging customers to buy sale items in bulk Placement of snack foods and soft drinks is most effective at the end of aisles nearest to checkout, where customers are likely to make spontaneous purchases Many customers are not using traditional coupons but would try a new brand if they had a coupon for it Customers have been slow to adopt advances in the supermarket industry such as self-checkout systems and the use of smartphone apps
- 26. + Suggestions for Improvement Increase use of customer’s Stop & Shop Card Existing Members – Cashiers should look up missing card by using customer’s telephone number New Members – Incentive should be offered with sign-up, such as a special one-time discount – More accurate tracking of purchase Result behavior
- 27. + Suggestions for Improvement Increase adoption of smartphone app Send e-mail to all Stop & Shop Card members communicating the benefits of the application Increase sales of store brand Hold blind taste tests in stores, allowing customers to compare the quality of store brand products to name brands Coupons for store brand – available through flyers, Stop & Shop Card, “SCAN IT!” system, and smartphone app Result – Increased customer loyalty
- 28. Thank + You!
- 29. + Sources 1. Stop&Shop. The Stop & Shop Supermarket Company, LLC. 2012. Web. 02 Nov. 2012 2. “About King Kullen Supermarket.” King Kullen. King Kullen. 2012. Web. 02 Nov. 2012. 3. “The History of Stop & Shop.” Company History. Stop & Shop. 2012. Web. 02 Nov. 2012. 4. Cox, Jeff. “Record 46 Million Americans on Food Stamps.” CNBC. Yahoo! Finance. 04 Sep. 2012. Web. 02 Nov. 2012. 5. Luhby, Tami. “October jobs report: Hiring increases, unemployment up.” CNN Money. Time Warner. 02 Nov. 2012. Web. 02 Nov. 2012.
- 30. + Sources 6. “Social Security Announces 1.7 Percent Benefit Increase for 2013.” Press Office. Social Security Administration. 16 Oct. 2012. Web. 02 Nov. 2012. 7. Kilbourne, Dwayne. “Scanning Success at Self-Checkout Lanes.” DW. Dwayne Kilbourne. 17 Jul. 2011. Web. 01 Dec. 2012. 8. “Scan It at Stop and Shop.” SuzySaid. Suzy Said LLC. 2009. Web. 01 Dec. 2012. 9. “Stop & Shop iPhone app.” onurteler. Wordpress. 11 Jun. 2011. Web. 01 Dec. 2012. 10. “Bargain Alert of the Day for Fairfield, CT.” Two Frugal Fairfielders. Wordpress. 28 Jan. 2010. Web. 01 Dec. 2012