A Happy Customer is a Paying Customer

A happy parent is a paying customer

Exploring what factors parents value when shopping with children

Simon Broström & Axel Danielsson

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Abstract

This cross-sectional study has investigated the relationship between how parents perceive retail stores that try to be more family friendly. It has also examined which factors parents value when it comes to stores being family friendly. Very little public research has been done on the subject of what parents’ value when it comes to store design, which is why the authors chose this topic.

The theoretical framework, as well as the questions used in the interviews, were based on theories the authors deemed connected to the subject in question. The main areas from which the authors have used theories range from competitive advantages, targeting and segmentation, consumer loyalty and the connection between stress and shopping.

Four themes were identified through the literature, and qualitative interviews were conducted over the phone based on the themes. Observations were also collected in retail stores to further explore the themes. Building on these themes, we suggest four propositions based on the data collected which can be further researched. Since the purpose of this paper was to allow respondents to freely discuss factors they value, a qualitative approach was used for the study. The interview subjects were approached while shopping with their children, and a phone interview was scheduled for later. The authors also collected observational data in three stores with different degrees of family friendliness, to further add further foundation to their themes. In addition, the authors present a theoretical model, based upon the four propositions presented.

The authors have found that the most common feeling parents associate with shopping while accompanied by their children is stress. Because of this, shopping becomes an unpleasant experience that parents try to finish as quickly as possible, often resulting in fewer items bought. It was also discovered that parents have more positive feelings towards stores that try to be more family friendly. Through the interviews and

observations, a pattern was discovered. Families spent longer time and purchased more goods in stores with family friendly solutions installed.

Through interviews, many different elements that can reduce parents shopping stress were identified. The main thing the authors take away from the interviews is the fact that what parents value the most, is feeling welcome when they bring their children with them. Stores that implement even small solutions, contribute to parents feeling

validated, which then reduces their stress levels.

Our conclusion is that store owners need to realize that it does not have to be hard to attract more families. Implementing elements in their stores that aid families in different ways will contribute to increased sales and happier customers. The authors also give suggestions on further research, namely on the relationship between pricing or location- elasticity versus family friendliness, as well as to which degree children in stores may have negative impacts on other shoppers.

Key concepts: Stress, Consumer Decision Making, Customer Loyalty, Shopping with Children, Competitive Advantage, Customer Segmentation, Targeting

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Table of Contents

1.Introduction ... 1

1.1 Background: ... 1

1.1.2 Children’s impact on shopping ... 2

1.1.3 Brand awareness in children ... 3

1.2 Research Gaps: ... 3

1.3 Purpose: ... 4

1.4 Research Questions: ... 4

1.5 Limitations: ... 4

1.6 Research contributions ... 4

1.7 Choice of subject ... 5

1.8 Previous knowledge ... 5

2. Methodology ... 5

2.1 Inductive vs Deductive ... 5

2.2 Ontological assumptions ... 6

2.3 Epistemological assumptions ... 7

2.4 Ethical Considerations ... 9

2.5 Qualitative Research ... 10

2.6 Literature searching. ... 11

2.7 Source criticism ... 11

3. Theoretical Frame of Reference ... 12

3.1 Chosen Theories ... 12

3.2 Stress & Consumer Behavior ... 12

3.2.1 Stress & Grocery Shopping ... 13

3.2.2 Consumer Decision Making Process & Stress ... 14

3.3 Segmentation, targeting and positioning ... 15

3.3.1 Market segmentation ... 16

3.3.2 Targeting ... 16

3.3.3 Positioning ... 16

3.4 Competitive advantage ... 18

3.4.1 Background ... 18

3.4.2 Competitive Advantage (analysis of concept) ... 19

3.4.3 Shifting competitive advantage ... 20

3.4.4 Applying Porter’s competitive advantage framework on Retailing ... 21

3.5.1 Cognitive Loyalty ... 22

3.5.2 Affective Loyalty ... 22

3.5.3 Conative Loyalty ... 22

3.5.4 Action Loyalty ... 23

3.6 Loyalty through Customer Service ... 23

3.7 Summary & Theoretical framework ... 23

4 Practical / Data gathering ... 24

4.1 Research Design ... 24

4.2 Triangulation ... 24

4.3 Variants of Data Collection ... 26

4.3.1 Focus Groups ... 26

4.3.2 Ethnography & Participant Observations ... 27

4.3.3 Interview ... 28

4.3.4 Unstructured Observations ... 30

4.4 Interview Guide ... 31

4.5 Selection of respondents ... 33

4.6 Practical Considerations ... 34

4.7 In-Store Observations ... 34

5. Results ... 35

5.1 Results from Interviews ... 35

6. Analysis and Discussion ... 43

6.1 Shopping with children & the stress that comes with it ... 43

6.2 Family friendly investments in store design ... 46

6.3 The value of family friendliness versus other factors ... 47

6.4 Customer loyalty towards stores ... 49

6.5 Theoretical model ... 50

7. Conclusions ... 51

7.1 Main conclusions ... 51

7.2 Future research suggestions ... 52

7.3 Practical Implications ... 53

7.4 Theoretical Implications ... 53

8. Social and Ethical considerations ... 53

9. Truth Criteria ... 54

Reference List ... 55

Figures and Models

Model on consumer stress in grocery stores ... 8

Framework on segmentation, targeting and positioning ... 10

Model on market positioning ... 11

Model on competitive advantage factors and firm performance ... 14

Model on interview control ... 28

Interview results question 1 ... 36

Interview results question 2A ... 37

Interview results question 2B ... 37

Interview results question 3 ... 39

Interview results question 4 ... 39

Authors developed model to explain propositions ... 50

Appendix I: Interview Guide

Appendix II: Excerpts from interviews

Appendix III: Notes from observations

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1.Introduction

This chapter gives a brief background to the thesis subject, including the key theoretical areas that are provided to introduce the reader to the subject. The background then discusses the research gap we have identified, and also explains the reasoning behind the research question. The research question is followed by the study’s limitations, and the chapter is concluded with a short disposition, explaining the following chapters and their structure..

1.1 Background:

The average cost of raising a child in Sweden from age 0 to 18, is almost 1.5 million SEK (Veckans Affärer. 2018), and that number is only covering the most basic needs such as food and clothing. Children are also especially expensive their first year, with experts estimating that an average set-up of necessary equipment costs 20 thousand SEK, if purchased new. Needless to say, families as a customer segment is a group that spends quite a lot of money, leading us to consider it as a very attractive target segment for retailers. This paper will investigate the concepts retail firms use in their stores in order to attract families with children, and how parents perceive and value such concepts.

In their now banned TV commercial from 2006, French manufacturer Zazoo (youtube) depicted one of the horrors associated with shopping for groceries when accompanied by children. A young boy wants a bag of sweets, but is declined this by his father. What follows is an almost parodic take on the term “throwing a tantrum” as the boy start screaming, throwing products around and embarrassing the father in front of other customers, looking at the boy with shocked and horrified expressions.

Anyone with young children knows that they can be almost impossible to reason with, especially when they have yet to develop sufficient verbal understanding and

communication skills. So, what are parents supposed to do when the family needs groceries but the child has to accompany the trip to the supermarket? A study by Pettersson et.al (2004), found that a lot of people associate stress to shopping with their children, often because they fear ending up in the same situation as the father in the commercial. While grocery stores in Sweden often give out free bananas to children in order to keep them busy, at least for a while, other stores take this to a whole other level.

The ball pit at McDonald’s restaurants, the playgrounds at large food stores, or the

video game station at general stores. These are just some examples of the ways that

certain organizations invest in their locations, with the sole purpose of entertaining the

children of their customers. While maintaining these elements surely require some

efforts and resources, one must assume that the organizations each decided that it would

be worth the costs compared to losing out on potential customers due to the stress

associated with shopping with children. Another reasoning is that this is a strategy

implemented by the firms in order to differentiate themselves for the customer segment

of shopping families. At least, one of the authors of this article is forever grateful to

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Swedavia Airports due to the fact that the children’s playgrounds located at their airports has helped keep the little one entertained on those long hours spent at the gate waiting on boarding.

In the book by Berman & Evans (2010), Retail Management: A Strategic Approach, Berman & Evans goes into the three different aspects of a value-oriented retail strategy.

They can be divided into expected, potential, and augmented (Berman & Evans, 2010, p. 30). As the name implies the expected retail strategy is the minimum value chain elements the customers expect from retailers. Some of those can be for example that the store has popular products in their inventory, that the store is clean, that the store is open on hours convenient for that particular segment, that the employees are informed enough to answer any questions that the customers might have (Berman & Evans, 2010, p. 30). If these are not met the customer will feel dissatisfied and avoid that type of retailer (Berman & Evans, 2010, p. 30). Potential retail strategy is where a store sees a potential competitive advantage in key value chain activities that have not been implemented by a competing firm. The store can then apply these activities in order to gain a competitive advantage. One example could be unlimited customer returns (Berman & Evans, 2010, p. 30).

Some retailers however implement what can be called the augmented retail strategy.

They provide value on top of these basic necessities that customers expect when visiting a retailer. These can be things such as personal shoppers, special services (Berman &

Evans, 2010, p. 30). What is interesting is that some of these augmented strategies have moved from augmented to expected, one example could be loyalty programs which is more something that is expected by customers nowadays and not an added feature. This points to the fact that retailers like any other industry needs to keep innovating in order to provide these augmented features in order to draw customers.

One of the most basic fundamentals of marketing is the concept of dividing a population of potential customers into customer segments (Wood, 2013, p. 70). Doing this aids firms in deciding which group or groups of consumers they will most likely succeed in attracting, and makes it easier to develop marketing strategies according to which segments the firms wishes to target (Wood, 2013, p. 71-72). There are three main ways marketers can utilize to identify customer segments. They include behavioral,

demographic, and geographic (Wood, 2013, p. 73-76).

1.1.2 Children’s impact on shopping

In a study conducted in Stockholm, many parents reported that grocery shopping with

children is seen as stressful. On top of that the parents of the families also reported that

it was exhausting going grocery shopping with small children. While it is either parent

that makes the purchase when it comes to family decisions, children can be seen as

having an influence in decision making. It can either be indirect or direct. The type of

influence children has over the decisions varies with age. Young children typically yield

whereas older children will negotiate or suggest what to purchase (Pettersson et al.,

decision making process (Pettersson et al., 2004, p. 318). It could be anything from

other people in the same store, to the time of day and the time of weather (Pettersson et

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al., 2004, p. 319). Another thing to note is that difficult situation of shopping together with one child increases when there are more than one. Especially brothers will fight with each other in the store (Pettersson et al., 2004, p. 321).

Many of the observed children also had no problem activating themselves in the store, either running through the aisles, playing hide-n-seek, diving into the fruits (Pettersson et al., 2004, p. 322). Some stores have begun to offer one free banana to children and this was apparently something that the children have learned early on. They would run to the banana basket before asking their parents’ permission and before the parents could have time to react and reach for one (Pettersson et al., 2004, p. 321-322).

This is important because by learning that parents in Stockholm perceive it as stressful, the same question can be asked for Umeå. It is also important to note that if it is

possible to decrease this stress that parents feel when taking their children shopping, parents will be more inclined to do so. This in turn will aid both parents and companies alike as taking their children shopping will accelerate the learning about different brands in children. This will enable them to more quickly help with the shopping instead of being more of a stressor.

1.1.3 Brand awareness in children

From the study, the researchers learned that brand awareness are taught from parents.

They observed a child choosing a box for a market-leading cereal brand before self- doubting and asking the father if there were a cheaper brand (Pettersson et al., 2004, p.

323). At this point the father points out that yes, the store’s own brand is virtually the same but it is cheaper (Pettersson et al., 2004, p. 323). This shows that children are becoming increasingly aware of the multitude of brands that they can choose from. It also indicates that children’s power over their parents is something that retailers cannot ignore, if they’re interested in attracting families to their stores.

In a time when competitive advantage is becoming increasingly important, we the authors believe that firms cannot afford to leave any stone unturned. Thus, we decided to investigate how customers perceive the solutions we discussed above, and try to create a theoretical framework on which factors companies should to take into consideration in order to maximize the positive effects of having an environment welcoming for children at their store locations

1.2 Research Gaps:

There are plenty of interesting articles that researches the concept of competitive

advantage available, and even some that examines competitive advantage in the retail

industry. There is also a vast number of articles covering marketing strategies and

customer analysis of various kinds. However, we have yet to find any articles which

focuses on the customer’s side of experiencing family friendly retailing, thus allowing

firms to gain an edge in attracting families. There also seems to be a gap in the research

on which factors customers perceive as valuable when it comes to the children’s area in

stores and malls. Thus, we believe that we can contribute to the theoretical field of

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Marketing, by examining both how customers perceive stores who adapt their store locations to be more welcoming towards children, as well as which factors these customers value.

1.3 Purpose:

The purpose of this research paper is to examine how customers perceive companies that incorporate designated children areas or other means of making their environments more welcoming to children, into their retail stores. The purpose is also to research which factors customers value the most regarding these concepts.

1.4 Research Questions:

How does parents perceive retail companies that try to increase their family friendliness?

What factors do customers value in regard to retail store’s child-oriented solutions?

1.5 Limitations:

There are a number of limitations to this paper that needs to be considered. Firstly, our samples were only taken from families located in Umea municipality. The reasoning for this is because of the nature of our data collection methods. As all our interviews were gathered on a single day, that could have an effect on the study as well. If the authors of this thesis had more time, it would be possible to gather interviews from different cities in Sweden and as such get a more representative sample of the entirety of Sweden. One must also take into account the sample size, and if it truly represents the population of Umeå. Time is also a factor to consider, since we are working under a relatively intense time frame, one must question whether or not that has had an impact on our work.

The authors own worldviews could also have an effect on our observations and the way we interpret them and the interviews. The authors are of the opinion that reality is formed by the social actors involved, this also means that in the observations, the

presence of the observers merely being in the same vicinity could have an effect on how the adult/children combinations acts and reacts to the environment.

1.6 Research contributions

We hope that this paper will aid researchers in the future when conducting further

studies on which factors consumers value when it comes to retail stores. By learning

what type of factors that consumers value in a retail setting and in particular in grocery

stores, in the future it would be possible to conduct a study that explains why consumers

value these factors. By also making the connection that most consumers appreciate

factors that help them reduce stress, hopefully this paper can aid researchers and

consumers alike to both identify additional stressors, as well as help to explain why a

particular factor is particularly appreciated by the consumers. Furthermore, it is the

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authors belief that this paper will aid in reducing the stress of the consumers through the knowledge acquired in this paper.

We hope that the theories we aim to develop from our data collection will not only be able to guide firms who are contemplating if they should implement a more welcoming approach to children in their stores, but also how they should implement it in order to maximize customer satisfaction. We believe that, as retailing becomes more and more competitive, firms need to consider every aspect of their business model, including offering to help with keeping customer’s children busy in a way that speaks to the parents.

1.7 Choice of subject

The authors have both studies courses relating to marketing and business strategies, but it was a discussion about Swedavia’s designated child areas that initially got us into this area of research. We talked about companies investing in their areas, making them more family friendly, and realized that in many cases, these areas were similar to each other.

We decided to examine whether or not these rather primitive areas were fit for the modern customer (meaning both parent and child), and to also examine how parents perceive other variations of family oriented initiatives.

1.8 Previous knowledge

The previous knowledge on this topic by the authors are from marketing courses and business development courses at Umeå University. Both of the authors of this paper have studied business for 4 years and are well aware of what competitive advantage, targeting, segmenting, and positioning entails. However, all of the information in the theoretical framework about stress, stress related to consumer behavior as well as stress and grocery shopping are something the authors learned when writing this paper. While the authors had some understanding on customer loyalty, none of the authors were previously familiar with Oliver’s framework on customer loyalty, one of the theories we will discuss in this thesis. While brand awareness is something both of the authors are very familiar with, how it develops among children were not something that were known by the authors beforehand.

2. Methodology

In this chapter, we go further into the theoretical aspects of the methodology, explaining the reasoning behind our choice of method. Firstly, we cover our research type, and discuss why we chose to follow that type. Then we go through our ontological and epistemological assumptions, which make up the foundation upon which this article lies.

2.1 Inductive vs Deductive

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In a deductive study, one seeks to draw conclusions from a general set of premises (Ketokivi & Mantere, 2010, p. 316). The conclusion must also follow analytically from the premises (Ketokivi & Mantere, 2010, p. 316). Inductive reasoning instead runs in the opposite direction, from particulars to generalization (Ketokivi & Mantere, 2010, p.

316).

An inductive research is a study in which a theory is developed from the observation of empirical reality (Norm & MacDonald). It is the most commonly used approach when conducting a qualitative study (Norm & MacDonald). Although the authors recognize that it is possible to do an exploratory or deductive study with a qualitative approach or by using the mixed-method, the authors believe that an inductive research is the best course of action. One of the reasons for this is the reviewed literature researched prior to choosing methodology. For example, Bäckström et.al (2006) chose to use an inductive approach, for reasons relating to searching for “real” opinions from customers. The vast majority of articles found by the authors has been using a qualitative approach, which isn’t surprising to us; implementing a quantitative approach would require the authors to have a survey with different choices, potentially skewing the received answers. The authors hope that this study will enable researchers to deep further down using this study as a base.

One of the recognized issues with inductive reasoning is that you use a specific event that occurred in order to draw a general assessment (Ketokivi & Mantere, 2010, p. 316).

Ketokivi & Mantere (2010, p. 316) argue that inductive inference lacks the same solid normative function that is prevalent in a deductive strategy and because of this, it can be considered methodologically incomplete.

Because of this gap between the empirical data and the theoretical generalizations, any given set of data can be utilized in order to produce multiple theoretical generalizations, and all of these generalizations are coherent with the data (Ketokivi & Mantere, 2010, p.

316). As a result, the problem that scientists face is that because it is possible to draw several theoretical generalizations that are in line with the data, how can one convince the world that my theory is the correct one (Ketokivi & Mantere, 2010, p. 316)? As there is no one correct answer for this, this is something that the authors of this paper will bear in mind when both collecting and interpreting the data. The authors have chosen an inductive reasoning strategy called contextualization. Contextualization argues that in this particular context, the conclusions we draw from the data are correct.

However, the authors also realize and acknowledge that in a different context, the same data could provide a different result and as such other conclusions could be drawn from the data.

2.2 Ontological assumptions

Ontological assumptions explain how we as people view reality. Ontological

assumptions will feed into the research as it is carrying out and may have an effect on

the result of the study. How the authors view reality will have an effect on the study,

and the authors have chosen an assumption we believe is the most appropriate for our

study. Since the authors believe that people create social phenomena and that these

could not exist without the actions of those involved, we feel that a constructionist

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approach is the most appropriate assumption. Social ontology is concerned with the nature of social entities (Bryman & Bell, 2013, p. 21-22).

The assumptions are whether social entities can be considered objective and possess a reality external to that of social actors (Bryman & Bell, 2013, p. 21). This ontological assumption is called objectivism. Objectivism believes that something like an

organization is something tangible with clear rules and regulations. An example is that it appoints different people to certain jobs and has a standardized approach on how to carry out work. Objectivism believes that social meanings and social phenomena are external to the actors and independent.

The other assumption is that they are constructed from the actions of the actors involved (Bryman & Bell). The authors believe that constructionism which is the latter one mentioned is more in line with this study. Constructionism believes that the social order is in a constant state of change (Bryman & Bell, 2013, p. 22).

Social constructionism argues that the researchers own world is brought into the research. The authors believe that we will present our version of reality and needs to take into account that this is not necessarily the version of reality that is a universal one.

Since people have different realities the authors need to keep this in mind.

Constructionism also notes that social phenomena and categories are continually being produced and revised through social interactions.

We found support of these arguments in the book by Berger and Luckmann’s (1967), they argue that “everyday life presents itself as a reality interpreted by men” (Berger &

Luckmann, 1967, p. 33). They also argue that everyday life as a reality is taken for granted by these men. (Berger & Luckmann, 1967, p. 33). However, they also argue that it is within their thoughts and actions that this reality first originates (Berger &

Luckmann, 1967, p. 33). They also argue that the same reality is maintained by these thoughts and actions (Berger & Luckmann, 1967, p. 33). Furthermore, in their book, they argue that different objects and thoughts that presents themselves in one’s

consciousness are part of different spheres of reality (Berger & Luckmann, 1967, p. 35).

Berger & Luckmann (1967) go on to argue that reality is in fact created by the actors interacting with each other in a different form, but one that gets the point across. “Say I have had an altercation with a man, who has given me ample expressive evidence of his anger towards me. That night I wake up with a knife embedded in the wall above my bed. The knife expresses my adversary’s anger” (Berger & Luckmann, 1967, p. 49). In the next sentence, they clarify what they mean. Even though the person in the story was sleeping when the knife hit the wall, the knife allows the victim to feel the person’s anger by simply existing (Berger & Luckmann, 1967, p. 49).

2.3 Epistemological assumptions

Epistemology is how we as humans’ view knowledge. There are several different

epistemological viewpoints, with the two most common ones being a positivist and an

interpretivist approach.

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Positivism is the epistemological assumption most closely associated with natural sciences. It rests on the assumption that only knowledge and phenomena that can be visibly observed can be regarded as knowledge. It also assumes that science is objective and that neither subjects nor the researchers will affect the research. A positivistic approach aims to test a theory by generating a hypothesis and then testing that hypotheses. It is the more preferred epistemological assumption when conducting a quantitative study. A positivistic approach is generally concerned with explaining human behavior as opposed to understanding it. The authors who want to understand human behavior, have thus chosen a contrasting epistemological assumption.

Whilst positivists believe that human beings and objects can be studied just as you would study anything else (Humphrey, 2013, p. 7), interpretivists argued instead that there was an existential difference between human beings and their social reality and other kinds of beings, objects and processes in the world (Humphrey, 2013, p. 7). The beginning of interpretivists begins where they argue that because human beings are capable of consciousness in relation to ourselves, others and the world around us are the distinguished mark of our humanity (Humphrey, 2013, p. 7). For this reason, we also conduct our business in line with our meanings, life-goals, motives, and concepts of self (Humphrey, 2013, p. 7). It is also for this reason that we can co-create cultures with shared patterns of feelings, believing and doing (Humphrey, 2013, p. 7). This also reconfigures a person’s epistemological orientation since the only way of

comprehending the world in a social aspect comes from our own humanity (Humphrey, 2013, p. 7).

The epistemological assumption that the authors have chosen is interpretivism, which is what the authors believe to be the most appropriate for this study. The authors seek to understand the human behavior and not explain it. By understanding why people act the way they do, the authors to hope to generate a theory which can later be explored further. As such we have chosen to view knowledge in an interpretivist approach.

Interpretivism believes that the social sciences of people are fundamentally different from that of natural sciences (Bryman & Bell, 2013, p. 16). Interpretivism developed from criticism of positivism.

Some of these criticisms include that it is impossible to separate people from their social context (Collis & Hussey, 2014, p. 44), that people cannot be understood without

examining the perceptions they have themselves of the activities they participate in (Collis & Hussey, 2014, p. 45), and that researchers are not objective, they bring their own view of the world and their values into the research (Collis & Hussey, 2014, p. 45- 48). Interpretivism believes that social reality is not objective but highly subjective (Collis & Hussey, 2014, p. 46) Interpretivists also believe that the researcher has an effect on the world around them and as such has an effect on the research.

Interpretivism also tends to use small samples, be concerned with generating theories as opposed to generating hypotheses (Collis & Hussey, 2014, p. 49). They also produce more subjective rich qualitative data (Collis & Hussey, 2014, p. 50). Using an

interpretivist approach with a qualitative data collection method, the authors need to be

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aware that the research will have high validity but low reliability. To simplify, while positivism aims to explore a social phenomenon, interpretivism aims to understand a social phenomenon.

Since the authors aims to use interviews with families to gain a deeper understanding of why families choose or do not choose certain retailers, it is important that the authors have an understanding that they will have an effect on the research. If only by simply being there and by also bringing their own preconceptions into the research.

2.4 Ethical Considerations

Ethical considerations All subjects will be asked for their consent before answering the survey and will be informed of the purpose of the study. They are all free to quit at any time they want and for the survey itself they will not be asked to put a name in order to further preserve their confidentiality. It can also be considered important to preserve the dignity of the participants and as such they will not be coerced or pressured into

answering any questions they are not comfortable answering.

Free consent is another important factor to consider when undertaking any research (Smythe & Murray, 2000, p. 313). Free consent means that an individual is partaking willingly in a research without any form of coercion from the researcher’s side (Smythe

& Murray, 2000, p. 313). This also means that this consent from the individuals in the study can be withdrawn at any time (Smythe & Murray, 2000, p. 313). The authors have gone to lengths to inform the interviewees of the study and that they are free to subtract both their statements at any time as well as conclude the interview at any point in time.

This position of free consent needs to receive considerable consideration when the person conducting the study is in a position of authority (Smythe & Murray, 2000, p.

313). As the researchers of this study are two students at Umeå University and the individuals in the study are parents of children, this part should be of no concern of the researchers or the reader of this paper.

Informed consent is where researchers have an obligation to the individuals being studied, interviewed etc. to “provide to prospective subjects … full and frank disclosure of all information relevant to free and informed consent” (Smyth & Murray, 2000, p.

313). While it is not necessary to disclose the complete research study to an individual

participating in the study (Smyth & Murray, 2000, p. 313), the researcher should inform

the participants about the factors that could affect a participant’s willingness to partake

in the study (Smyth & Murray, 2000, p. 313). Some of the aspects include the purpose

of the research and the identity of the researcher, the duration of the participation that

they individuals have to commit to, assurances that both the participation and the

withdrawal from partaking in the study are voluntary and can be done at any time

(Smyth & Murray, 2000, p. 313). This is something the authors took measures to ensure

when doing the interviews with the individuals partaking in this study. The individuals

also informed them that their information and the recordings would be saved until the

researcher has been officially completed.

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The right to privacy is a very important human value in most modern societies (Smyth

& Murray, 2000, p. 314). It is an individual's right to not have personal information about them disclosed, as well as information that could in any way identify the person without the permission of the person (Smyth & Murray, 2000, p. 314). Anonymity and confidentiality are ways that the researchers can protect the participants and their right to privacy (Smyth & Murray, 2000, p. 314). Confidentiality focuses on the fact that all data collected by the researchers about the participants and their identity will not be disclosed without the informed and free consent (Smyth & Murray, 2000, p. 314).

Anonymity refers to the fact that the research about the subjects and participants will be released without any personal or identifiable data that could help a person draw

conclusions about a person (Smyth & Murray, 2000, p. 314).

All of these have been take into consideration in this research. The researchers realize that the informed and free consent were not possible in the case of the observations, but measures have been made in order to keep them completely anonymous even from the observers and researchers themselves. There would be no way for the observers to recognize or identify any of the people observed in the study. In the case of the interviews, both the free and informed consent were ensured prior to conducting the interviews, as well as the information about both the confidentiality and anonymity regarding the study were communicated at the start of the interview and the notification that if they did not agree to these rules that they could opt out of the interview.

Doing observations is always a tricky subject as it is not possible to retrieve consent because the fact that an individual knows they are being watched could have major effects on the study itself. In this case, we have chosen to adhere to the ethical

guidelines regarding passive data collection from the ICC/Esomar in article 4. Quoted below:

“When using passive data collection methods where it is not possible to obtain consent, researchers must have legally permissible grounds to collect the data and they must remove or obscure any identifying characteristics as soon as operationally possible.”

This is something that this research has done as much as possible. The gender of the parent as well as the child have been randomized and for reading purposes have been given a gender. All names are also completely made up and in the cases where it for example says a boy and his father, the genders might not necessarily be what they say they are in the paper.

2.5 Qualitative Research

In order to increase the credibility and thus the trustworthiness of the study. The authors

have chosen to use Triangulation in order to try and ensure that the credibility be as

high as possible. The main parts of triangulation are to have multiple sources of data

and multiple observers. Since both of the authors will act as observers on different

occasions, these criteria are fulfilled. One issue here however is that since the authors

will not use any data collection method other than interviews with different parents of

families, there will not be multiple data collections. One potential option here to

increase the credibility of the study could be to have the participants fill out a small

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survey before beginning the interview and use that to cross-check versus the answers given in the interview.

2.6 Literature searching.

The authors used online searches in order to find relevant literature. After discussing amongst main themes were identified, and the authors were able to begin reviewing the literature. The themes we identified were; competitive advantage in retail, market targeting and segmentation, customer service and loyalty.

Umeå University’s database was used for searching, as well as Google Scholar. We also utilized research sites such as Science Direct. Different keywords were used in various combinations to find the literature we believed suited our purposes the best. The words used per main topic were;

Competitive advantage

•

competitive advantage

•

differentiation

•

competitive strategy

•

sustainable

•

retail

•

families

•

children

Market targeting & segmentation

•

targeting

•

positioning

•

segmentation

•

families

•

marketing

•

children

Customer service & Loyalty

•

customer service

•

customer loyalty

•

willingness

•

branding

The searches generated lots of good results, and by reading articles and examining the reference lists within them, we were able to further increase the relevance for our own study by finding new articles.

2.7 Source criticism

While some of our sources are rather old, we made sure to examine their content closely

to ensure that the information presented was not outdated. We also made sure to inspect

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the author’s credibility by looking at what institutions they were connected to, as well as examining why the article was made from the beginning. Finally, we also looked at who published the article, as we did not want to use any secondary data from an organization that could be biased in any way.

3. Theoretical Frame of Reference

In this chapter, the main theories connected to our research question will be discussed and analyzed. The theoretical frame of reference is based upon four main themes identified by the authors as the most relevant..

3.1 Chosen Theories

The authors have chosen these theories because it is believed by us that all of these are important in a retail setting if a store wants to remain competitive and operative. An important part for any firm is to consider their positioning, which segment they will target, and deciding how to segment the market. This is needed because the store wants their offerings to be in line with what that particular segment values. The authors believe that having a competitive advantage is crucial for any store that wishes to be profitable in the long run. Whether that be an increase in quality and customer service, or offering lower prices, a store that positions itself in the middle will likely struggle to remain profitable, as one of our chosen theories states. This will be discussed further into the thesis.

Building on that, the authors then look at customer loyalty, as a solid competitive

advantage can push customers along the theoretical loyalty stages. The goal for any firm or store is to have customers be action loyal. This means that customers will go out of their way in order to shop at a particular store, even if its location might be suboptimal.

The authors also see that customer service is a key factor in building customer loyalty.

The authors note that this can be provided in several ways, with one of them being catering to families and children and thus making the parents more likely to choose that particular store.

The authors have chosen to present themes instead of hypothesis, due to the nature of our queries. Instead of testing hypotheses, we have identified themes based on

conclusions drawn from earlier theories. These themes deal with concepts for which no laboratory test is available. Later on we will develop propositions based on the themes we have noticed in earlier literature from our own collected data.

3.2 Stress & Consumer Behavior

Stress theories suggest that the feeling of stress triggers a person to initiate coping

(Albrecht et al., 2017, p. 721) The methods of coping can be classified into problem-

focused, which include information seeking, choosing among alternatives, developing

new standards of behavior, and engaging in direct action. While emotion-focused

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coping strategies are selective attention, and avoidance (Moschis, 2007, p. 434).

Transactional stress theory believes stress can be defined as “a particular relationship between the person and the environment that is appraised by the person as taxing or exceeding his or her resources and endangering his or her well-being” (Lazarus &

Folkman, 1984, p. 19). What is interesting is that some researchers believe it is not the situation in itself that triggers stress, but rather the thoughts and emotions a person has about the situation.

Albrecht, Hattula and Lehmann researched in their study whether purchase abandonment could be linked to stress. According to Albrecht et al, (2017), store- induced stress makes the shopping experience for the consumers negative (Albrecht et al., 2017, p. 720). Albrecht et al., takes this research further by exploring whether there is a difference between purchase abandonment and task-oriented vs recreation-oriented shopping. When it comes to task-oriented shopping, customers are goal-oriented and want the shopping to be done as efficiently as possible (Albrech et al., 2017, p.721- 722 ). Task-oriented shoppers get their sense of fulfillment from the purchasing of the product and not the activity itself (Albrecht et al., 2017, p. 721). Their goal at a store is to complete the task at hand with the minimum of amount of energy exerted (Albrecht, et al., 2017, p. 721). As stress will increase the amount of effort required to complete activity, this will lead to higher purchase abandonment among task-oriented shoppers (Albrecht et al., 2017, p. 727).

While recreational-oriented shoppers get fulfillment and more importantly, pleasure from the activity itself, they will be more inclined towards purchase abandonment at low levels of stress (Albrecht et al., 2017, p. 728) while decreasing over higher levels of stress (Albrecht et al., 2017, 727). The reason for this is because when their stress levels becomes high enough, a recreation-oriented shopper will turn toward getting the task done rather than seeing the activity itself as a pleasure (Albrecht et al., 2017, p. 727).

3.2.1 Stress & Grocery Shopping

In a research on stressors in grocery shopping by Aylott (1999), he found that grocery shopping was not only the most stressful type of shopping, but also that while parents and children could wait in line for over an hour to buy the latest toy, the idea of having to queue in a supermarket were horrific (Aylott, 1999, p. 363). The reason for this, he argues, is in grocery shopping it seen as routine and as a chore having to shop for groceries (Aylott, 1999, p. 363). Aylott (1999) also found that shoppers were more prone to leaving their shopping carts and simply exiting the store because of crowding and queueing in relation to other factors (Aylott, 1999, p. 365).

The two most commonly identified stressors in a supermarket are crowding, and queueing. While the latter is a direct result of the former (Aylott, 1999, p. 365).

Crowding occurs when the supply for personal space is less than that of the demand for it (Stokol, 1972, p. 275).

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When Aylott (1999) examined the stressors related to crowding he found some

phenomena that very identifiable in relation to crowding (Aylott, 1999, p. 365). One of the aspects he found were that of badly-behaved young children running around in the store, making the consumers perceive it as more crowded than it originally was (Aylott, 1999, p. 365). Parents were also reportedly stressed by having their children with them in to the store (Aylott, 1999, p. 366). The largest stressor here was the promotions for goods that the children wanted the parents to buy whom the parent were not interested in buying (Aylott, 1999, p. 366). Aylott eventually created a model of the different stressors related to grocery shopping and how they related to each other (Aylott, 1999, p. 365).

As seen in the model created by Aylott (1999), crowding or the perception of crowding is the largest instigator of stress in a grocery shopping environment. Crowding leads to excessive queueing as well as badly behaved children. It is also possible to see that badly-behaved children increase the perceived crowding among consumers.

Figure 3.1 - Aylott’s model on consumer stress in grocery stores. (Aylott, 1999)

3.2.2 Consumer Decision Making Process & Stress

The stress relating to consumption can be experienced by the consumer both before and

after a purchase. The first step of the consumer decision making process is commonly

known as need recognition (Moschi, 2007, p. 432). In this stage stress occurs from the

fact that the consumer recognizes that not all of their needs are fulfilled, this can be due

to changes in the environment but also changes in the consumer. (Moschi, 2007, p.

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432). At this stage is where budgeting occurs as well. This is where the consumer needs to decide between priorities of consumption which is also a cause for stress in consumer (Moschi, 2007, p. 432).

Once a need has been recognized, and budgeting for the specific product or service has been made. A consumer moves over to the information-seeking stage (Moschi, 2007, p.

432). At this stage, the stress experienced by the consumer can come in the form of the perceived risk of choosing the right product or service (Moschi, 2007, p. 432). It can also come in the form of the consumers own perceived inability to choose the correct the product or find the right information (Moschi, 2007, p. 432).

At the evaluation stage, the consumer makes a decision on what product or service to purchase based on the information he or she has gathered. Here the consumer may be exposed to stress because there are too many options or information overload about the products (Moschi, 2007, p. 432).

Eventually the consumer will arrive at the purchase stage, this is where the consumer has evaluated all of the different options available to them on the market and decides on a product or service to purchase. Here the associated stress with a purchase for the consumer will come from product unavailability, required method of payment, and long queue lines (Moschi, 2007, p. 432).

At the final stage of the consumer decision making process, the post-purchase stage, the consumer will review the product or service performance as well as customer service.

Typically, the consumer will experience a level of stress if the product does not meet the expectations of the consumer, or if the after-sales care is poor (Moschi, 2007, p.

432). On top of feeling annoyed.

It is also important to note that research shows that avoidance coping strategies have shown to have negative effects on life-event induced stress as opposed to a

confrontational strategy (Thoits, 1995, p. 58). However, the consumption-induced stress has shown that the effects of avoidance strategy vs confrontation strategy are reversed.

It has shown that it can enhance the person's self-esteem (Moschi, 2007, p. 437).

The reason why the authors of this paper have chosen to have such a heavy focus on stress is because the other propositions in this article are all centered around ways to mitigate it. The reason why parents value different factors that are aimed at making the shopping trip for families easier is because they reduce the stress associated with shopping

3.3 Segmentation, targeting and positioning

This section covers the concept of Segmentation, Targeting and Positioning, and also examines why the general research done on the topic indicates that retailers have much to benefit from by making their stores more welcoming towards children.

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One of the most fundamental questions that any business must answer, is who are our customers? In their article from 1991, Dibb et al., (1991) laid out the original

framework for how firms should go about doing this. The framework itself has three steps; market segmentation, targeting, and positioning.

Figure 3.2 – The original framework on segmentation, targeting and positioning.

(Dibb et al., 1991)

3.3.1 Market segmentation is the process of dividing a market into different groups (segments). The factors that decide which segments will be presented is entirely

dependent on how they are divided (Dibb et al., 1991, p. 6), but the most common ones are dividing based on factors such as; age, gender, income, personalities etc. Dividing a market into segments is essential for obvious reasons, as it allows companies to

determine which individuals they should try and cater their products and services to.

Once the market is divided, market strategists can move on the next stage; targeting.

3.3.2 Targeting, is the process of choosing which segments a firm should focus their resources on, to try to market themselves towards them. Since trying to cater to everyone is in most cases, extremely difficult and not very effective, firms needs to decide which segment or segments will be the most lucrative to build a strategy around (Dibb et al., 1991, p. 7). When the firm has decided which segments are the most profitable to target, it must move on to the final step; positioning itself amongst the competition.

3.3.3 Positioning is the final step of the process. It is in this step firms must decide how

and where they should devote resources to launch a perfect mixture of product, price,

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promotion and distribution (Dibb et al., 1991, p. 8). It is especially important to consider how the firm’s offering stands in relation to competitors, as marketing a product in a manner that customers don’t believe is counterproductive (Dibb et al., 1991, p. 8).

Figure 3.3 - General Store’s Positioning according to Dibb et.al, using price & quality.

(Dibb et al., 1991)

This ties into our idea about the relevance of aiming for a family oriented atmosphere in retail stores, as having such a concept available means that a firm positions itself as being child friendly, in order to attract more business from shopping families.

One important thing to consider, is the findings of Bäckström (et al., 2006), in their study of consumer’s perception of retailing experiences. They found that while retailers themselves tend to focus on trying to wow the customers with technology and

innovative concepts, the factor’s most important for customers where the attitude of employees and the general atmosphere of the store (Bäckström et al., 2006, p. 424).

This also supports the idea of store’s gaining an advantage by making families feel welcome and appreciated.

A study on Hungarian retailer’s attitude towards children, found that children who were completely un-stimulated contributed in a two-fold negative way; both increasing parent’s stress levels, and effectively shortening the time spent shopping, resulting in fewer purchases (Deli-Gray et al., 2014, p. 1012). These findings indicate that as a retailer, having a positive attitude towards children and finding ways to stimulate them, benefits both the families as well as the profits. This is supported further by a Scottish study by Wilson (et al., 2004), which found that parents who went shopping

accompanied by their children, spent more time in-store and usually spent more money

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(Wilson et al., 2004, p. 335). Naturally, that is completely dependent on the fact that the families felt welcome in the stores, instead of feeling like a disturbance or annoyance.

3.4 Competitive advantage

One of the underlying questions that the authors of this article is researching, is to which degree customers value child-oriented solutions within retail stores. The question itself is centered around whether or not having such an area contributes to a store’s competitive advantage. The next part goes deeper into the concept of competitive advantage, beginning with the basics of the concept, to then move on to more recent research on the topic.

3.4.1 Background

The father of this concept, Michael E. Porter, first wrote about Competitive Advantage in 1980, but the idea behind it is still as relevant as ever. He stated that there are two main schools of competitive advantage; cost leadership, and differentiation (Porter, 1985, p. 3).

Cost Leadership.

The school of cost leadership is centered around the very basic idea of doing exactly what your competitors are doing. A simple example is selling the same product, but doing it with a much more effective business, leading to lower margins and ultimately a lower cost than the competitor’s price (Porter, 1985, p. 67). While this topic is a whole science on its own, we will not go deeper into it, since it has no real relevance to our field of study.

Differentiation.

Porter defines differentiation as something a firm can accomplish by being unique at something that is valuable to buyers (Porter, 1985, p. 119). Porter emphasizes the idea that differentiation can spring up literally anywhere in an organization’s business model. It can exist in the value chain, in the services provided, or even in the organization’s branding (Porter 1985, p. 120). This supports the author’s idea of

designated child areas as part of a firm’s differentiation strategy, as the added service of helping families with children while the parents do their shopping.

A firm’s uniqueness in regard to value activity is, according to Porter (1985) determined by a series of basic drivers. These drivers can be broken down into key areas, and the one we believe is the most important is Policy Choices. This relates to the actions firms decide to do as well as how they do them. This covers everything from products

featured, performance offered, quality versus price, activity contents etc.

The authors deem Policy Choices being centrally linked to the research area, as we are

examining the impact of how the businesses methods aimed at reducing customer’s

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stress associated with shopping with their children. Since this is something that not every retailer currently does, it becomes a part of the differentiation strategy for the ones who do.

3.4.2 Competitive Advantage (analysis of concept)

In his article from 2000, Hao Ma made some very interesting observations on the term competitive advantage, especially when linked with organizational performance. He found 3 important observations: firstly, having a competitive advantage is not linked with superior performance, but rather something that is nice to have, while still being very dependent on a firm’s ability to operate successfully.

Secondly, he found that competitive advantage is relation-based, meaning that the term is only relevant when looking at a focal firm and rivals within a specific attribute.

Thirdly, he discovered that competitive advantage is a completely context-dependent concept. As an example, he discusses whether Michael Eisner, the mastermind behind Disney’s success between 1986 and 2000, gives the company a competitive advantage.

His performance certainly indicates this, yet him having trouble developing a succession program for Disney’s next leader seems more like a weakness. (Hao Ma, 2000, p. 29).

Hao Ma presents a model, depicting the different outcomes competitive advantage can have on firm performance, showing that just because a firm has an advantage, there is no guarantee for said firm to outperform its competitors. The arrows in the model represent the effect from one factor to another. For example, a firm might have governmental support, the best location, and lucrative supply deals, but still not have competitive advantage due to the fact that management fails to exploit them properly.

This would then not lead to heighted firm performance.

This ties in to our research, since we are exploring which family friendly factors parents value in retail stores. A store might have implemented certain solutions with good intentions, but because of poor implementation they might not have a positive effect on parents at all.

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Figure 3.4 - Model depicting the different factors that influences competitive advantage (Hao Ma, 2009)

3.4.3 Shifting competitive advantage

As discussed previously, competitive advantage is not something that constant. A study

performed at Toronto University (Arnold et al., 1978), found that for general stores in

Toronto, this was very much the case. One store increased its market share from 30% to

45%, by adopting a competitive advantage in pricing. However, 2 years later it was

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found that as prices amongst other stores had settled, customer service was instead the most important determinant for whether or not customers returned to the same store (Arnold et al., 1978). This supports the previous analysis by Hao Ma, and using this perspective to look at child designated areas gives some interesting new angles.

Implementing such a concept in a store is something that retailers do to attract families, but the area could quickly become costly space that could be used for better purposes, if there are no families who use it, or if it isn’t presented properly by the store. For a retail store, gaining competitive advantage against rival firms is an ongoing project that can span across several different factors of the company’s business model.

.

3.4.4 Applying Porter’s competitive advantage framework on Retailing

A study conducted in Germany in 2005 (Morschett et al., 2005) on competitive advantage in relation to food retailers, found that in retail especially, there are 3 main strategies that firms can choose to follow. They can either (1) be price leaders, offering the lowest prices on goods, (2) be quality leaders, offering the highest level of customer care across all factors of their business, or (3) have the best location, gaining advantage merely through having their store in the most convenient location (Morschett et al., 2006, p. 276).

According to Porter, companies must decide which strategy to follow, and companies that try implementing more than one of the main strategies risk becoming “stuck in the middle”, with no gains whatsoever (Porter, 1985, p. 12). The findings of Morschett et.al contradicts this, as they found that quality and price were independent factors, which could be pursued simultaneously (Morschett et al., 2006, p. 275). Another of their findings which is highly relevant in regard to having designated child areas, was the fact that a store that implemented a good and friendly atmosphere could bias the attitudes of customers considering other aspects of the store (Morschett et al., 2006, p. 286). Thus, it seems feasible that showing the customers that the firm “cares” about their children and shopping experience, could have positive effects on several aspects of their shopping experience. These findings contribute to our third proposition;

P3: Customer services such as family orientation are more important to parents than low prices and similar factors.

3.5 Customer Loyalty

According to Oliver (1999), the loyalty of customers comes in four stages. Previously, it was believed that only behavior or attitudinal was important when it comes to customer loyalty, however Oliver proved that both attitudinal and behavioral was important (Oliver, 1999, p. 35). Especially attitudinal loyalty grows through three of the four stages presented, cognitive, affective, and conative. While attitudinal loyalty grows through these three phases, behavioral loyalty is the result that develops because of these stages (Oliver, 1999, p. 35).

Oliver (1999) means that a customer’s loyalty starts in the cognitive stage and matures.

After the first stage, it moves to an affective state and continues to develop. In the end

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of the attitudinal loyalty development process it ends up in the conative stage (Oliver, 1999, p. 35). When a customer has gone through these three processes, the final stage is where the behavioral loyalty starts to function. The authors believe customer loyalty to be highly relevant for our research, as the concepts we will explore could have an effect on customer’s loyalty towards different retailers.

Cognitive loyalty is the first to develop. It develops through information about the product or service (Oliver, 1999, p. 35). In this case the authors consider the store to be the service. Later it effectively develops towards the organization and the organization's culture and way of doing business.

3.5.1 Cognitive Loyalty

The first phase of the attitudinal loyalty development process is as previously

mentioned, the cognitive loyalty the customer develops (Oliver, 1999, p. 35). This stage is the information-based loyalty stage. The customer builds loyalty by comparing the particular product or service with the alternatives that is available on the market (Oliver, 1999, p. 35). The customer bases this evaluation on prior experiences and knowledge about the product/services. Cognition also involves the perceived value the customer receives for using the product/service.

The perceived value is the assessment the customer makes about the utilization, what the customer pays and what the customer receives back for the price paid (Oliver, 1999, p. 35). The image can be described as the overall view the customer has of the

product/service based on information from various sources (Oliver, 1999, p. 35). Along with the quality, these three components make up the loyalty formation process in the first stage of the loyalty development process.

3.5.2 Affective Loyalty

At the cognitive stage, loyalty is still shallow in its nature and customers can be quick to switch another product/service (Oliver, 1999, p. 35). Affective loyalty is more

preferable to most firms as it is built on a deeper bond between the customer and the firm (Oliver, 1999, p. 35). Affective loyalty associates to a pleasurable fulfillment or positive attitude towards the product/service (Oliver, 1999, p. 35). Based on an

increased attractiveness of the attributes or the offerings of the product, individuals form a liking to the product/service (Oliver, 1999, p. 35). Affective loyalty develops via the cognitive loyalty stage through the performance of cognitive elements. Affect possesses large portion of customer loyalty, however it is not enough to guarantee true customer loyalty. Subjects who are at the affective loyalty stage will gravitate toward the product but they are still subjective to switching away from the product or service (Oliver, 1999, p. 35). Affective loyalty built on cognitive loyalty is the basis for forming a conative loyalty (Oliver, 1999, p. 35). This can be explained because affect has an effect on cognition, and this has an effect on behavioral intentions.

3.5.3 Conative Loyalty