COVID-19, Digital Transformation, Consumers' Experience: Factors Influencing Satisfaction and Loyalty in Food Retail

COVID-19, Digital Transformation, Consumers' Experience: Factors Influencing Satisfaction and Loyalty in Food Retail

DOI: 10.4018/978-1-6684-9146-1.ch001
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Abstract

Covid-19 and repercussions on a global scale made individuals see their lives interrupted, having to adapt to different contexts of everyday life. They saw their shopping habits and priorities changed, especially in terms of food. The study aims to analyze which factors have become more and less valued by Portuguese retail food buyers during and after this unusual time period. It also wants to see digital evolution's impact in off and online consumption. A quantitative study was developed through a questionnaire to a final sample of 404 Portuguese consumers. Data shows a huge importance to the stores' hygiene and high insecurities related to products' quality, freshness, and preservation. It also shows that individuals purchased more in physical stores, despite confinement and restrictions. Digital and e-commerce are just sources of information. A major limitation of the study is the use of a non-probabilistic convenience sample, despite the good number of participants. However, it proves that an omnichannel strategy is crucial to promote customers' satisfaction and loyalty.
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Theoretical Background

Armstrong and Kotler (2015) defined retail as the set of activities that allow selling products or services directly to the final consumers, for their (mostly) personal use. These activities take place along the distribution channel: a group of commercial and logistics transactions between different entities, that transport, stock and deliver products at the right time, place and conditions (Rousseau, 2020; Faria, Pereira, Lima, Vilela & Loureiro, 2022). In other words, it involves two stages (e.g. Alves and Bandeira, 2014): upstream (suppliers and movement through the wholesale trade) and downstream (partners - e.g. retail players- and final clients). The retail sector presents the highest number of food transactions per second; its importance, both for various supplying entities and for final consumers, is undeniable. All over the world, there are a lot of players that act as facilitators, moving products from their place(s) of production to their place(s) of consumption.

Key Terms in this Chapter

CJM: Customer journey maps are visuals or graphics that represent the customer relationship with a company – products and services - over time. To offer a great customer experience companies need to clearly understand the customer journey, all the organization's processes, systems, and how employees interact with its customers.

New Techs: Emerging technologies and latest technology trends, like AI.

IoT: Internet of things refers to the collective network of connected devices and the technology that facilitates communication between devices and the cloud, as well as between the devices themselves. Nowadays, billions of devices are connected to the Internet (e.g., toothbrushes), through sensors, allowing to collect data and respond intelligently to users.

CRM: It is the acronym used for Customer Relationship Management and refers to the set of practices, business strategies and technologies focused on customer relationships in time.

Blended: In an increasingly interconnected society, communication between companies and consumers has changed drastically. Companies need to communicate with clients with coordinated actions online and offline.

ROPO: Research online, purchase offline and vis a vis is how actual consumers act to buy goods or services.

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