Thesis Archive

A Layout method for improving grocery product adjacencies based on customer expectations (2010)

Carandang, Carmi B.
Khoo, Jade Marie A.
Lim, Katrina Michelle S.

Abstract:

-This paper presented a study on the development of grocery product arrangement based on customer expectations. An introduction was done by discussing an overview if the Philippine retail sector, the importance of customer relationship in retail, the taxonomy or classifications of retail store outlets, and the different types of convenience. The importance of the benefit convenience in the groceries was also discussed, since the study focused on how benefit convenience can affect the shopping experience of shoppers in groceries. Along with that, the categories of buying decisions and phases of grocery shopping were also mentioned for further understanding of grocery shoppers.

The main objective of the study was to develop a method for determining the product adjacencies based on customers expectations to increase customer convenience. This proposed method can be used by any retail stores especially supermarkets. However, there are several limitations to consider such as the product types that are subjected for re-layouts, the existence of predetermined product locations in line with the contract of suppliers, and the presence of fixed and specially-designed stations. From these considerations, two experiments were performed, namely the Card Sorting experiment and the Grocery Shopping Simulation.

The Card Sorting experiment was conducted to 40 participants to determine the groupings of products and aid in specific products must be placed adjacent to another. Meanwhile, the Pairwise Exchange Method was done immediately after the Card Sorting experiment to create optimal layout and maximize customer expectations on product adjacencies. After which, the Grocery Shopping Simulation was conducted in order to validate the hypothesis of the study that layout considering customer expectations can increase customer convenience. Thirty participants were recruited to do the Grocery Shopping Simulation on the present layout of Chiplus Minimart and also on the proposed optimal layout generated. The results generated from the Grocery Shopping Simulation were then analyzed using the paired t-test to determine whether they are statistically significant and to test whether there is a significant difference between two population means for a pair of random samples. Aside from this, an application program was created to automate the steps performed in the Card Sorting experiment and the Grocery Shopping Simulation in order to spare future users of the proposed layout method in the manual computations and method technicalities. Finally, a user manual was provided for people who are interested in using the developed program, which included a detailed list of procedures in determining the optimal product adjacency layout. Troubleshooting of the program was also supplied to ensure better convenience for the user.

Lastly, recommendations for further development of the study were also given. Future research can include the consideration of the impulse buying tendency of shoppers in arranging products. Also, future researchers may consider simplifying the method when there are more than 70 products in the grocery, since products with such big quantities can already be annoying to participants and inconvenient for programming input. Finally, it is also recommendation for future researchers to think of compressing the two programs into one software or application. In doing so, the benefit and convenience experienced by both owner and customers can be even more enhanced.

Adviser:

Mr. Rosemary Seva