Assessing Grocery Store Attraction via Cross-Shopping Linkages – Amount of Cross-shopping

The degree of cross-shopping can be assessed by examining consumer and store characteristics. Consumer characteristics include the number of stores shopped and frequency of shopping. On average respondents visit a grocery store 2.0 times per month, see Table 2. The frequency of shopping trips was examined on a bi-weekly, weekly, and 2 or more times per week. Approximately 14% were bi-weekly shoppers, 42% shopped weekly, and 44% shopped two or more times per week (see Table 3). Cross-shopping can also be assessed from the store’s perspective by examining the proportion of cross-shoppers of each store (see Table 4). On average approximately 79% of respondents are cross-shoppers. Overall, the data support cross-shopping patterns within the grocery market, therefore, the data are acceptable for creating a cross-shopping table. The cross-shopping analysis was undertaken by creating a matrix that shows the percentage of a store’s primary shoppers that patronize each of the other stores, see Table 5. At this point in the analyses Super K-mart was removed due to small sample size. In addition, the “other” category was also removed from further analyses. These percentages show the cross-shopping linkages between each store with every other store.

Since the percentage of shoppers who chose Harris Teeter as their primary store and also shopped at Food Lion is not the same as the percentage of shoppers who chose Food Lion as their primary store and also shop at Harris Teeter, the cross-shopping matrix does not reflect the same information on either side of the diagonal. For example, the percentage of Bi/Lo shoppers who shopped at Food Lion was 44.8% while the percentage of Food Lion shoppers that shopped at Bi/Lo was 31.0%. The strength of the grocery store as a preferred store can be identified by examining the columns in Table 5. It appears that Harris Teeter stores attract over 35% of cross-shoppers from each of the other stores and Food Lion stores attract over 20% of cross-shoppers from three of the five stores. Further evidence of the store’s degree of attraction can be identified by examining the strengths of the twenty possible cross-shopping linkages. A review of the ten most important cross-shopping linkages indicates that Harris Teeter attracts customers from all of the other stores and Food Lion attracts customers from three of the four other stores, see Table 6. Bi/Lo and Winn Dixie are attract customers only from Food Lion shoppers and Hannaford attracts customers from Harris Teeter. Using the means of the cross-shopping matrix, measures of a store’s level of attraction and sharing were developed, see Table 7. Attraction was measured by calculating the column means for each of the stores in the cross-shopping matrix. This calculation is similar to the research on receiving (i.e., attraction) and sending (i.e., sharing) conducted by Lord and Bodkin and Bodkin and Lord. A lower attraction/sharing ratio (i.e., less than 1.0) indicates that the store’s cross-shoppers are more likely to shop at a secondary store choice.
The ratio of attraction/sharing provides a measure of the store’s ability to attract cross-shoppers away from the competition. A higher attraction/sharing ratio (i.e., greater than 1.0) implies that the store attracts more shoppers than it shares, suggesting that it is more likely to be a market leader. The results indicate Harris Teeter and Food Lion have the highest attraction/sharing ratios at 2.35 and 1.24, respectively indicating they are more likely to attract shoppers from their competitors. It is interesting to note that Harris Teeter’s attraction/sharing ratio is almost twice that of Food Lion. As noted earlier, only 53% of Harris Teeter shoppers indicated they were cross-shoppers providing further support for the higher attraction/sharing ratio found in this analysis. Bi/Lo, Winn Dixie, and Hannaford have attraction/sharing ratios less than 1.0 (i.e.,.66,.61, and.38, respectively) indicating they are more likely to share their customers with their competition. Both Hannaford and Winn Dixie had over 90% of their customers indicate they were cross-shoppers. While Bi/Lo had fewer cross-shoppers compared to Food Lion (see Table 4) they also attracted fewer shoppers from other stores resulting in their lower attraction/sharing ratio.
Based on the findings of the attraction/sharing ratios, stores were grouped into two categories. Stores having attraction/sharing ratios greater than 1.0 were categorized as attraction stores (i.e., Harris Teeter and Food Lion). Stores having attraction/sharing ratios less than 1.0 were categorized as sharing stores (i.e., Bi/Lo, Winn Dixie, and Hannaford).

Table 2. Number of Stores Visited

PrimaryStore Number of shoppers Number of stores shopped monthly Total number of visits per month Average number of visits per month
1 2 3 4 5
Bi/Lo 22 6 10 4 2 0 46 2.1
Food Lion 28 8 14 4 1 1 57 2.0
Hannaford 6 1 4 1 0 0 12 2.0
HarrisTeeter 78 24 38 15 0 1 150 1.9
SuperKmart 2 0 1 1 0 0 5 2.5
Winn Dixie 11 2 5 4 0 0 24 2.2
Other 4 1 1 2 0 0 9 2.3
Total 151 42 73 31 3 2 303 2.0

Table 3. Cross-shopping frequency

PrimaryStore Number of shoppers 1 time every 2 weeks 1 time per week 2+ times per week
Bi/Lo 22 4 11 7
Food Lion 28 4 11 13
Hannaford 6 2 2 2
Harris Teeter 78 6 32 40
Super Kmart 2 1 0 1
Winn Dixie 11 2 3 6
Other 4 2 2 0
Total 151 21 61 69
Average (%) 13.9 40.4 45.7

Table 4. Proportion of cross-shoppers per store

Number of shoppers Number of cross-shoppers Percentage of cross-shoppers
Bi/Lo 22 16 72.7
Food Lion 28 20 71.4
Hannaford 6 5 83.3
Harris Teeter 78 54 69.2
Super Kmart 2 2 100
Winn Dixie 11 9 81.8
Other 4 3 75
Total 151 109 79.1

Table 5. Cross-shopping matrix

Who also shopped at (%)
Shoppers at: (primary store) Bi/Lo Food Lion Hannaford Harris Teeter Winn Dixie Sharing %
Bi/Lo 44.8 3.4 37.9 6.9 23.3
Food Lion 31.0 4.8 35.7 23.8 23.8
Hannaford 5.3 10.5 73.7 10.5 25.0
Harris Teeter 17.5 23.8 22.2 17.5 20.3
Winn Dixie 7.7 38.5 7.7 42.3 24.1
Attraction % 15.4 29.4 9.5 47.4 14.7

Table 6. Cross-shopping linkages

From To Amount of Cross-shopping (%)
Hannaford Harris Teeter 73.7
Bi/Lo Food Lion 44.8
Winn Dixie Harris Teeter 42.3
Winn Dixie Food Lion 38.5
Bi/Lo Harris Teeter 37.9
Food Lion Harris Teeter 35.7
Food Lion Bi/Lo 31.0
Food Lion Winn Dixie 23.8
Harris Teeter Food Lion 23.8
Harris Teeter Hannaford 22.2

Table 7. Cross-shopping attraction/sharing ratio

AttractionMean

%

Sharing Mean% Attraction / Sharing Ratio
Bi/Lo 15.4 23.3 0.66
Food Lion 29.4 23.8 1.24
Hannaford 9.5 25.0 0.38
Harris Teeter 47.4 20.3 2.33
Winn Dixie 14.7 24.1 0.61

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