Purpose
There is tremendous growth potential for food and grocery (F&G) retail in an emerging market like India. Bengaluru is the third most populous city of India. With a total consumption expenditure of Rs 2,020 billion and per capita retail expenditure of Rs 67,289 (in 2015), Bengaluru has emerged as a sought-after retail market with many foreign and national brands opening stores here. The purpose of this paper is to use the sign of causality to determine the relationships between store attributes, satisfaction, patronage intention and lifestyles in F&G retailing in Bengaluru.
Design/methodology/approach
An experimentation framework using causal design was developed to establish relationships between variables: store attributes, satisfaction, patronage intention and lifestyle. A primary survey was conducted using a structured non-disguised questionnaire involving 346 F&G shoppers from Bengaluru. Hayes regression models were adapted and hypothesized relationships between the variables tested using correlation, multiple regression and Hayes regression/path analysis.
Findings
Satisfaction acts as a mediator in the relationship between store attributes and patronage intention. Lifestyle does not act as the moderator in the relationships between store attributes and patronage- intention; and, satisfaction and patronage intention.
Research limitations/implications
In experiments that test for causality a big limitation is lower internal validity in the absence of control mechanisms, unlike laboratory studies. Another limitation is that this study is limited to urban Bengaluru F&G shoppers, variations could occur if the study is extended to include rural shoppers.
Practical implications
With 100 percent foreign direct investment permitted in the F&G category in India, the research outcomes will be useful to all food retailers (prospective and current) interested in this retail market. Moreover, in the existing competitive scenario, understanding of associative influences between store attributes, satisfaction, patronage intention and lifestyle will enable retailers comprehend F&G shoppers retailing behavior. This information can be used for targeted marketing and operational strategies, which will deliver more success in marketing relationship management, building competitive advantage and enhancing marketing efforts profitably.
Originality/value
This paper is a new and original contribution to the existing literature on causal relationships among variables in retail marketing research. It is different from prior studies that analyzed shoppers F&G behavior, in that it extends the understanding of the role of “satisfaction” as a mediator and “lifestyle” not a moderator, when testing the causality of store attributes on patronage intention.
