Consumer Buying Behavior in Neighborhood Markets. Comportamento de Compra dos Consumidores em Mercados de Bairros

Transcription

1 PMKT Revista Brasileira de Pesquisas de Marketing, Opinião e Mídia ISSN: (Impressa) ISSN: (On-line) Editor: Fauze Najib Mattar Sistema de avaliação: Triple Blind Review Idiomas: Português e Inglês Publicação: ABEP Associação Brasileira de Empresas de Pesquisa Consumer Buying Behavior in Neighborhood Markets Comportamento de Compra dos Consumidores em Mercados de Bairros Submission: Nov./28/2014 Approval: Apr./7/2015 Micheline Machado Teixeira Master of human aging from Passo Fundo University. Expert of marketing management in service and sale from Passo Fundo University. Bachelor of business administration from Passo Fundo University. Teacher in the Passo Fundo University. micheline@upf.br Professional address: UPF-BR 285, São José, B5-FEAC, Passo Fundo/RS - Brasil. Vanessa Bolico da Silva Pursuing the specialization in production engineering in International University Center UNINTER. Pursuing the bachelor in metallurgical engineering in Federal University of Rio Grande do Sul UFRGS. Bachelor of business administration from Passo Fundo University. vanessab-silva@hotmail.com

2 ABSTRACT This study aimed to investigate consumer behavior in neighborhood markets and the reasons that lead consumers to buy in these establishments instead of buying in larger supermarkets. The research used a conclusive quantitative descriptive approach driven by a non-probability sample for convenience (traffic) of 100 people in the population studied. Was held in the city of Passo Fundo, Neighborhood Lucas Araujo, Rio Grande do Sul, for its considerable concentration of markets of neighborhoods. The questionnaires were applied through interviews with consumers in the Act of purchase, in place of concentration of major markets. The data were analyzed in the computational program Excel. The research results are very similar. The relevant conclusions of this study are: costumer profile and behavior definition, identification of reasons that lead customers to choose to buy in neighborhood markets, the relationship with the owner being more important than the location and the price. The results demonstrated that the most part of evaluated customers are loyal to neighborhood markets and these establishments overcome their weaknesses by adding value and quality in the service provided to their clients. KEYWORDS: Consumer behavior, neighborhood markets, reason for choice. RESUMO Este estudo teve por objetivo investigar o comportamento do consumidor em mercados de bairros e as razões que levam os consumidores a comprarem nesses estabelecimentos em relação a mercados do mesmo gênero e de maior porte. A pesquisa usou uma abordagem conclusiva descritiva quantitativa conduzida junto a uma amostra não probabilística por conveniência (tráfego) de 100 pessoas da população estudada. Foi realizada na cidade de Passo Fundo, Bairro Lucas Araujo, Rio Grande do Sul, por sua considerável concentração de mercados de bairros. Os questionários foram aplicados por meio de entrevistas com consumidores no ato de compra, em local de concentração de grandes mercados. Os dados foram analisados por meio de programa computacional Excel. Os resultados colhidos pela pesquisa apresentaram grande similaridade. As conclusões pertinentes a este estudo foram: definição do perfil e comportamento do consumidor, identificação das razões que levam os consumidores a escolherem comprar em mercados de bairros e o relacionamento com o proprietário sobrepondo e desmistificando a localização e o preço. Os resultados demonstraram que a maioria dos consumidores avaliados se encontra fidelizada aos mercados de bairros e estes sobrepõem seus pontos fracos agregando valor e qualidade nos serviços prestados aos clientes. PALAVRAS-CHAVE: Comportamento do consumidor, mercados de bairro, razão para escolha. V. 16, p , abril,

3 1 INTRODUCTION This present study brings together a topic that is currently important for the marketing research field. The consumer behavior in neighborhoods markets, given that there is a significant increase in the number of establishments and an economic growth in food distribution sector in retail. In 2001, the neighborhood markets had 30 % of participation in the Brazilian retail, in 2011, in other words, ten years later, about 35 %. On the opposite, larger markets decreased from 36% to 22%, in the same period (SEBRAE, 2013). The main question that is ailing companies is exactly this constant change in consumer behavior in relation to choice of available products, which is becoming increasingly difficult maintain a relationship of fidelity. This statement can be observed in the study of Meyer-Waarden e Benavent (2008), which results demonstrate that the customer loyalty programs do not have been successful in all situations. The main reason for this occurs is the increasing competition and, with this competition, a wide supply. It should be noted that there are consumers that aims to reduce costs maximizing their real income and also there are consumers that opts for quality in products and services. Therefore, the principle of offer more and more, with more quality, charging less and, at the same time, understanding and adapting itself to consumer desires and aspirations is not considered a simple option but, are fundamental requirements to the company to survive in an extremely competitive environment (KOTLER, 2010). The market offers increasing opportunities and large variety of products that makes the choices and experimentations increase the consumer field of action, given that each consumer react in different ways to the same incentives, because people are different from each other. Cobra (2010) suggests that the cognitive structure, that is, structure of knowledge, opinion or belief, about the ambient and about the midst psychological environment, make different consumers act in a different ways. Aiming to understand how consumers behave in neighborhood markets, the objective of this study is identifying the consumer profile and behavior. The behavior is analyzed by the following items: reasons for going shopping, influences to buy and if the consumer shops routinely or by necessity. While the study of Queiroz, Souza e Gouvinhas (2008) analyses marketing strategies for neighborhoods markets, this study aims to understand how consumers of neighborhood markets behave, analyzing the reasons for them frequent these establishments. The contributions of this study to theory and practice of marketing is understanding consumer behavior to define marketing strategies to local markets regarding the factors that influence the buying processes. For the exploration of primary data was selected the Passo Fundo city of Rio Grande do Sul, Brazil, more precisely Lucas Araujo neighborhood, given the large number of markets in this neighborhood. Aiming to explore how consumers behave and all consumption process (recognition of the problem, search for information, selection of alternatives, consumer and post-consumer), this study was guided by the following central question: how consumer behavior influences in the choice between a neighborhood market and a supermarket? 2 SUPERMARKETS AND NEIGHBORHOOD MARKETS The first Brazilian businessmen that risked their investments in the grocery sector can be considered more than pioneers when it was a new business field. The supermarket can be defined as the self- V. 16, p , abril,

4 service system that the consumer picks up what wants to buy, only getting in touch with store operators for pay for purchases. The market owner main objective is the sale of food, providing complementarily the grocery sections. Some offer sections of non-food products, basically oriented to the sale of household items of immediate use and consumption. Because of the variety of items on display, there were just few sectors of the economy that presented so fast growth as the supermarket. A supermarket is a large sized operation, with low cost and small profit margin, in order to satisfy almost fully consumer needs, with respect to food, personal care products, and cleaning and household maintenance products (KOTLER; ARMSTRONG, 2012). In Brazil, there are more than establishments having from one to ten checkouts and they are responsible for more than 43% of retail sales volume, these numbers show how is the situation of neighborhood markets. This indicates that, if there is a large number of small shops, is because consumers prefer them (FURUTA, 2002). 3 RETAIL MARKETING: PRODUCT, PLACE, PRICE AND PROMOTION Broadly defined, marketing is the planning and execution of a set of business activities, with the final purpose of the exchange of goods or services between producers and consumers (GRACIOSO, 2007). According to Kotler (2010), marketing has been defined in many ways, but for the author, the concept is best applied when says it is a social and management process by which individuals and groups obtain what they need and want through the creating, offering and exchanging products of value with others. This marketing concept is based on needs, desires, demands, products, goods, services, ideas, value, cost and satisfaction, exchange and transactions, relationships and networks, between companies and potential consumers. The marketing concept assumes that the key to achieving organizational goals is to be more effective than competitors and integrate marketing activities, thus satisfying the needs and wants of target markets. Munhoz (2006) defines in the four Ps of marketing viewed from the side of the seller (company), with a vision oriented to the product and less to the customer (consumer). The for Ps are defined as: Product: refers to product variety, quality, features, brand name, design, packaging, size, services, warranties and returns; Price: consists of the basic price, discounts, payment terms and credit terms; Place or selling point: this is related to distribution facilities (locations), physical distribution (stock), transport and storage; Promotion: personal selling, advertising, sales promotion, public relations and direct marketing (direct mail, telemarketing). 4 CONSUMER BEHAVIOR AND PROCEDURE FOR PURCHASE DECISION It is noted that there are several factors that influence consumer buying behavior, such as: cultural, social, personal and psychological, being the first one that has most influence on purchasing decisions, according to Kotler (2010). According to Solomon (2014) consumer behavior involves a wide area, being a study of the processes involved when individuals or groups select, buy, use or discard products or services, ideas or experiences to satisfy needs and wants. The culture is defined by the values, perceptions, preferences and behaviors inherited from the family or other institutions. Social class is not only in agreement with income, but also with V. 16, p , abril,

5 occupation indicators, level of education and area of residence that differentiate the clothing, language patterns, preferences and leisure activities, and many other features. To confirm the stated, it can be cited the study of Haddock-Fraser, Poole e Doishita (2009) describing the lack of success of large supermarket chains in Japan due to consumer behavior. Those consumers, for a cultural reason, prefer smaller establishments with higher quality products. The authors mention that buying in smaller stores has become a trend in other countries like the United States and Britain. According to Solomon (2014), to make family decision is divided into two types. The first is the consensus purchase decision when everyone agrees with the purchase and there is no conflict, the problem will be solved by all individuals involved. The second type consists of the buying decision in which there is conflict between members of the family unit, as both have different tastes and preferences, end up not reaching a consensus. Another factor of strong influence on purchasing decisions is given by personal characteristics such as age, life cycle stage, occupation, economic, lifestyle, personality and self-image. Psychological factors are related to motivation, perception, learning, beliefs and attitudes (KOTLER, 2012). There are several aspects that influence the buying process, including the most important that is the end user of this product and the real utility of this, that is, products for domestic use are usually chosen by women as well as children's products are chosen by children. According to Kotler (2012), marketers must develop a specific understanding to identify who is responsible for the purchase decision and what are the steps in the buying process, distinguishing five important roles that can be played on a decision purchase: Initiator: suggests buying a product or service; Influencer: gives its views or advice in purchasing decisions; Decision maker: decide on any parts of a buying decision - buy, what to buy, how to buy or where to buy; Buyer: who actually performs the purchase; User: final consumer of the product or service. Solomon (2014) states that one of the main aspects of consumer behavior study today is that buyers generally purchase products more for what they represent than the utilities it has, considering that the basic features of a product no longer represent the main factor, in order to stimulate or not the purchase by the customer. Therefore, it is important to understand consumer behavior, given that the same is not knowledgeable of your deepest motives or of what really influence in the selection of a product or service. 5 DECISIONS IN RETAIL AND PRODUCT MIX Rojo (2003) points out that the retail marketing decisions should be viewed and cleared due to the increasing development of new establishments formats, market segmentation and deepening of consumer knowledge, that are: target public definition, location, price, advertising and promotions and variety. In the audience definition is essential to know the profile of consumers who live near the company and examine the compatibility with the adopted strategic positioning (ROJO, 2003). Therefore, a store is installed according to the characteristics, needs and the purchasing power of its future customers. V. 16, p , abril,

6 In the location, first there is the need of the knowledge of the region in which is wanted to install the store, later studies, such as customer profiles, income, population, competitors, shopping habits, stores that usually are attended, must be performed (ROJO, 2003). Advertising and promotions are essential to attract customers, the store price image is formed by special offers and promotions, emphasizing the products with different values of the other competitors (ROJO, 2003). Currently, the use of advertising should be the one with faster and more efficient communication, aiming to reach a greater number of consumers willing to spend. The variety has its importance due to be a differentiating factor to its competitors, first, the retailer should set the amplitude level (product categories) and, after, the depth level (number of items per category). The product mix does not consider only the products, it also includes a range of services involving the level of service offered to the consumer. According to the study of Sharkey, Wesley and Courtney (2012), the product range (the presence and variety) is a key marketing strategy in store for influence consumer choices. The definition of the products being offered by the retailer can be viewed under the following points of view: management by product group, decisions on the compound of products and criteria for evaluation of products (ANGELO; SILVEIRA, 2013). Product group administration: in retail, the administrator must review the existing products in its point of sale, avoiding the lack of products, not given chances for competitors (ANGELO; SILVEIRA, 2013). Thus, this administration intend to allow the definition of basic classes of products that the company wants to offer to the market, that is, which categories will be offered to end users. With respect to decisions on the compound of products: the administrator must take into account the internal and external variables, evaluating the line and the amount of product that will be selling. After analysis, it is possible to set the range, number of selected product lines, diversity, that is, diversification of lines and items will give the amount of products that the store will offer to the target market. Criteria for evaluation of products: retail administrator must review the product, giving emphasis on how far this is compatible with the line or if should be replaced. It should also be considered in market, the product life cycle on fashion, acceptance and profitability. 6 METHODOLOGY A conclusive quantitative descriptive research. The descriptive research, according Dihel and Tahtim (2004), has as main objective the description of certain population characteristics, phenomenon or the establishment of relationships between variables, and uses standard techniques of data collection, such as questionnaires and systematic observation. Quantitative research is characterized by the use of quantification, both in the collection and in the processing of information by statistical techniques, from the simplest, as a percentage, to the most complex, aiming to ensure results and to avoid distortions of analysis and interpretation (DIHEL; TATIM, 2004). For the study we used data from a population that, as Roesch (2009), is a group of people or companies, whose interest in interviewing is for the specific purpose of a study. Given the size of population, a portion of this was extracted to investigate instead of using the total size. The study population is 7,526 people living in Lucas Araujo neighborhood in the city of Passo Fundo / RS (IBGE, 2013). The sample of 100 people was not probabilistic convenience. If it was probabilistic, it will result in a sampling error of 9.75% for a confidence level of 95%. V. 16, p , abril,

7 The interviews were conducted by a field survey instrument about consumer behavior for studies involving micro and small companies adapted from SEBRAE (2013). The questionnaire contained questions covering the proximity of market to home, how often and how long people attend neighborhood markets, the products and services preferably acquired in these establishments, the reasons that lead to frequent these establishments as well as similar issues concerning shopping in supermarkets. In addition to these, the questionnaire contained also personal issues such as age, sex and education level to identify the profile and the behavior of these consumers. The application of the interviews was conducted by the authors of this study. Five markets were chosen for research (named A, B, C, D and E), located in Lucas Araujo neighborhood. Aiming to had not deviations on the study, the performance was done in alternate hours, days and weeks. It should be noted that the visited and evaluated establishments are located in the same neighborhood, but are in distant points of each other. In each establishment were performed 20 interviews. After the questionnaire application and tabulation of questions, were prepared, using Excel, tables with hierarchy of items and graphs with percentages of the results. Thus, it was possible to understand, visualize and interpret the results of the research. 7 DESCRIPTION OF SALES POINTS STUDIED The commercial establishments analyzed are defined as retail with shops, in the classification of food retail (ROJO, 2003). They are neighborhood markets with limited variety of products, defined as trading stations and grocery stores, where the service is conducted by the owners of the establishments. The markets analyzed have a mix of diverse products, as processed foods, bakery and butchery products, fruits and vegetables, hygiene and cleaning material, also providing some general merchandise, household items and services such as delivery home. Table 1 shows the most important information of neighborhood markets analyzed: sales mode, fixed customers, commercial time and typical checkouts. They are small establishments and according to Parente cited Furuta (2002), they are markets that have from two to six checkouts and sell complete lines, but compact, of food products. TABLE 1 Retail food establishments and their characteristics. MARKETS A B C D E Sale options Credit card, Credit card, Credit card, Credit card, Credit card, check, $, check, $, check, $, check, $ check, $ "notebook" "notebook" "notebook" Fixed clients Commercial time (years) Checkouts It is possible to verify that these establishments have similar sales mode and fixed customers, for example, varying this last item with commercial time of establishment and quantity of checkouts, we observe the size (considering that they are small) of each market. These markets have achieved the purpose of location because the positioning of each establishment shows a tendency to success, V. 16, p , abril,

8 considering what has already been obtained (ROJO, 2003). In the analysis of the four Ps, according to Munhoz (2006), evaluating the companies, it is possible to verify that the product (in function of variety, quality, brand and design) and the point of sale (location), has a propensity to customer loyalty. 8 ANALYSIS OF RESEARCH RESULTS It was identified the reasons, motivations and influences that lead consumers to shop at neighborhood markets, as shown by the following tables. It is possible to verify that customer satisfaction is meeting the expectations of the concepts marketing functions, mentioned by Kotler and Armstrong (2012), when say that the establishments are trying to understand, create, communicate and deliver to the customer value and satisfaction. It was considered the factors that lead consumers to make purchases, as shown in Chart 1. CHART 1 Reasons for shopping. REASONS TO SHOPPING Friendship / Relationship to owner Location Quality of services Price Trust Payment options PLACING 1st Place 2nd Place 3rd Place 4th Place 5th Place 6th Place Advertising 7th Place Consumers are concerned mainly with friendship, location and quality of service, so it appears that the junction of customized and distinguished service overrides even the price. Friendship / relationship with the owner: this factor is often definitive in the purchase, because consumers are demanding in this aspect by the fact that the relationships are narrowed by friendship. The consumers generally expect that the owner have initiative to showcase the products, have good humor and education, and appreciate the peculiarities of each consumer. Location: consumers prefer sales points near their homes to facilitate the movement, avoiding spend time and providing convenience. Quality of service: most characterizes as great, with agility, competence, kindness and when everyone thinks that the service is not time consuming. Price: it is not the determining factor because they are compatible with competitors when comparing the cost benefit. Trust: this fact reveals two important aspects to provide security to consumers in this sector - the positive experiences with effects and previous purchases, and the fact that the company is known, being structured and solid, being for years in the market. Another less important factor was the fact of not having a returns system. V. 16, p , abril,

9 Payment options: the majority of consumers believe that the local markets have good and diverse payment options, most prefer to make payment in cash by the fact of obtain discounts and for being low-value purchases. Advertising: aspect that is not relevant to consumers, consumers recognize that communication is done in various ways, but they still not affected by media to go shopping. The study of Queiroz, Souza and Gouvinhas (2008) on variables that attract the customer to the supermarket, the first five items obtained in the research were: service, proximity to residence, promotion, price and quality of products. In comparison with the results obtained in the study, there was a correspondence of results with a small difference in the positions. Although the study has been carried out in different locations, the reason to shop has great similarity among consumers, which reinforces the research results. In Chart 2, is identified two important points of the segment of purchases: purchase for necessity and buy casually. CHART 2 Purchase casually or for necessity. SHOPPING FOR NEED OR OCCASION Purchase of necessity Buy casually PLACING 1st Place 2nd Place Avery et al. (2013) explain the need as an unsatisfactory condition of customers that leads to an action that will make this in a better condition. In the survey, most interviewees buy for reasons of necessity, casual purchases are related to the social aspects of the respondent. In Chart 3 were identified the not casual occasions of higher frequency of purchases. The birthdays, Mother's Day, Father's Day and Christmas holidays were the most scored. What is noticeable is that for occasions like Valentine's Day or births, people prefer to buy other types of products. CHART 3 Not casual occasions to shop. NOT CASUAL OCCASIONS TO SHOP Birthday Mothers Day Father's Day Christmas Secret friend Easter Valentine's Day Birth PLACING 1st Place 2nd Place 3rd Place 4th Place 5th Place 6th Place 7th Place 8th Place V. 16, p , abril,

10 There are several influences on consumer buying process. Engel, Blackwell and Miniard (2005) divide the influences in: culture, social class, personal, family, location and psychological processes (Chart 4). CHART 4 Influences to buy. INFLUENCES TO BUY Influence of friends and family members There is no influence of media or promotions on purchases There are influences to buy Shopping to stock PLACING 1st Place 2nd Place 3rd Place 4th Place In the survey were detected influences to buy, most interviewees is not influenced either by promotions or by media, because only buy when they really need. Other great influences are personal (close relationship) and family (primary unit for making credibility decision) which include friends and family, it shows that people who live close to each other exchange their experiences and, therefore, serving well a client is the same as making a network of relationships with people close to them, that is, is the famous expressions: mouth to mouth. Something detected is that it is not necessary to invest both in media and in well-prepared professionals to serve on the front line. Kotler (2010) states that customer relationship is nothing more than create, maintain and enhance strong relationships. It was tried to explore how buying time consumers provide for neighborhoods markets, because they are generally low involvement purchases (goods and consumption) and by the fact that consumers in this sector generally make scheduled purchases, that is, they already carry the list of what they want to buy and because of that, they are characterized, in most cases, as quick buyers. In the tables were identified the reasons, motivations and influences that lead consumers to buy in neighborhoods markets. The reason factor for purchases revealed aspects of the relationship, availability of transportation to the center, service and availability of variety or not. With regard to the motivations, two were identified: casually buy and buy for necessity. It is pointed out that most of consumers buy for necessity and sometimes casually buy, given that it involves essential products. Another very important issue is the influence on purchases, in which there was identified the importance of maintaining good relationships with customers, as this factor is considered crucial for customers. In regards to whom the purchases are dedicated, it was found that, in most cases, are for itself and for people in their closer relationship. In the background are the spouse and children. In relation to casually purchases, it often include friends, relatives and acquaintances. There is a clear tendency to the loyalty because most people responded that generally buy in two or one place. With respect to time, is characterized as quick purchases because they pre-program the purchase. V. 16, p , abril,

11 9 PROFILE OF INTERVIEWEES The aim of this item is to describe the consumers interviewed in neighborhood markets analyzed. This establishments are in the same neighborhood of the city of Passo Fundo / RS and can be verified various economic classes, as shown in Figure 1. 20% 0% 5% 19% 5% 28% 23% A1 A2 B1 B2 C D E Did not answer FIGURE 1 Socioeconomic classification of interviewed consumer. Most are in Class C, and after that, are in Class B2 and B1, respectively. Thus, it is possible to verify that Lucas Araujo neighborhood is basically composed by the classes B and C, given that the market analyzed are located at different points in the neighborhood. It was used as a parameter for socioeconomic identification the data of the Brazilian Association of Research Companies - ABEP (2008). FIGURE 2 Age of respondents V. 16, p , abril,

12 In relation to the age of respondents, identified in Figure 2, most have age of and years, later and similarly, customers with and years. Thereby, is demonstrated that neighborhoods markets can reach all age groups, as well as the social classes. Graph 3 shows that shopping in markets is a female task, analyzing the results this is confirmed, given that over 60% of surveyed people are women. These women are responsible for the research of better products, prices and service to the survival of the family income. 38% 62% Female Male FIGURE 3 Gender of respondents. In Figure 4, it is observed that the customers interviewed in the five shops reside at different distances from markets. Most (29%), lives in distance less than 100 meters and, second (27%) are customers that reside more than 500 meters from the analyzed market. 27% 29% 20% 24% Less than 100 m 100 to 300 m More than 300 m More than 500 m FIGURE 4 Proximity of customers residence in relation to commercial establishments. In this analysis of distances, occur two situations: one of proximity and another of differential. The proximity is an important factor given the economy of time and trips to more distant market, that is, the convenience and ease of locomotion. V. 16, p , abril,

13 In another hand, but also the second most valuable item, customers resides more than 500 meters of markets and are loyal by differential that this establishment offers: the friendship with the owner of the market, what is offered in products and services or even, some factors that differ this markets from other establishments and gives a relationship of loyalty from the customer. Analyzing the frequency in which people go to market, represented by Figure 5, it appears that the majority of customers (25%), buy more than three times per week, in second place, 24% of people attend stores twice a week and, thirdly, 23% of customers have daily shopping. 25% 10% 23% FIGURE 5 Frequency of shopping in markets. Daily shopping Two times a week Sporadically 24% 18% Once a week More than three times a week In overall, consumers interviewed in the analyzed markets are loyal, because the majority are buying again and attend the establishment for some time. According to Kotler (2012), loyal consumers evaluate which offer provides greater value and then maximize their limited satisfaction to the costs involved in the search, knowledge, mobility and revenue. So this repetition comes from the satisfaction and fulfillment of expectations mentioned herein. The analyzed markets have different life cycles in relation to commercial age, the commercial ages are between 4 and 30 years. As shown in Figure 6, customers in these markets, mostly (28%), have been attending this establishments between 2 and 5 years, demonstrating loyalty. In other previous periods of time, it is demonstrated a tendency of loyalty too. As shown in Figure 6, it is verified that there is a satisfactory competitive position of companies as described by Hooley, Piercy and Nicoulaud (2011), because these markets are positioned and targeted objectively, reaching their niches. That is, customers who purchase products more frequent in these neighborhood markets, are those who reside closer of them. V. 16, p , abril,

14 17% 8% 13% 18% 28% 16% From 01 to 06 months Less than 01 years From 01 to 02 years From 02 to 05 years More than 05 years More than 10 years FIGURE 6 Time that frequent the market. In Table 5, were ranked the products or product lines which consumers purchase preferably in these establishments. In first place is processed foods, second place is bakery products and, thirdly, hygiene and cleaning material. Butcher's products, fruits and vegetables were fourth and fifth, respectively. CHART 5 Goods acquired preferably in markets. PRODUCT HIERARCHY 1st Place 2nd Place 3rd Place 4th Place 5th Place PRODUCTS Processed foods Bakery products Material cleaning and hygiene Butcher products Fruits and vegetables It was observed through the visits to the establishments that information provided by the interviewed customers are consistent with the products offered in the market because their strength points are exactly the most often cited by customers, for example, products offered in first place in gondolas are precisely the manufactured products and hygiene and cleaning materials. Later, breads, crackers, meats, fruits and vegetables. Interviewed customers also shop at supermarkets. This was observed when asking the interviewees if they buy in large supermarkets and request to cite them. The most cited was Bourbon (37%), secondly the Bella Citta (28%), 17% of consumers alternates their purchases in these two supermarkets and 18% of all respondents do not buy in these large establishments, as shown Chart 7. V. 16, p , abril,

15 18% 37% 17% 28% Bourbon Bella Cittá Bourbon/Bella Cittá Not FIGURE 7 More attended supermarkets. This type of retail is classified as general retail stores - hypermarkets, offering a wide range of products and competitive prices. Sell food and non-food as: electronics, home appliances, clothing, computer equipment, perfumes etc. There is also, in these establishments, the integration of complementary retail as cafeterias, laundry, hairdresser, lottery, 24 hours bank, shoe store, pharmacy and newsstands (ROJO, 2003). 40% 4% 11% 20% 26% Constantly End of month Entertainment Promotional Wednesday Sporadically FIGURE 8 Frequency that consumers buy in supermarkets. As shown in Figure 8, the majority of customers who go to supermarkets, attend them sporadically (40%), or seek the products and services that the neighborhood markets do not provide. In the second place, purchases at the end of months and in third place just in promotional Wednesdays. These results are due to the economy factor, people look for prices, they decide to shop in promotion days and in the end of month, when they receive their payments, to acquire essential and also the luxury goods that neighborhood markets do not provide. It is identified the differences between types of retail analyzed by Rojo (2003), in which the retail of food do not provide many V. 16, p , abril,

16 goods and services that is provide by the retail of general merchandise, classified as supermarkets and hypermarkets. In Table 6 the results show that people prefer to buy goods that are on promotion, that is, in these supermarkets, they aim to reduce its costs, subsequently, they prefer to buy manufactured products and hygiene and cleaning products. CHART 6 Searched products in supermarkets. PRODUCT HIERARCHY 1st Place 2nd Place 3rd Place 4th Place PRODUCTS Promotional Processed foods Hygiene and Cleaning Bakery products It is observed in Chart 7 that the diversification of products and services is the main reason for buy in large establishments, in second place, the practicality of cards, the quality of products, promotions and prices were also well cited by interviewed customers. These large establishments centralize a huge diversification of products and services (within the hypermarket analysis) and basically all things are found in one place, highlighting this aspect: the diversification. CHART 7 Reasons to buy in supermarkets. HIERARCHY OF REASONS 1st Place 2nd Place 3rd Place REASONS TO BUY IN LARGER MARKETS Diversification of products and services Product quality and practicality of the establishment card Quality of products and promotions and prices Analyzing both supermarkets and neighborhood markets, it is clear that the local markets have certain advantages over supermarkets. According to Rojo (2003), these markets can offer personalized service, because they detect the regional culture and therefore supply products most appropriate to your public. In supermarkets, however, there are thousands of diversified products in various lines (absent in neighborhoods markets), often with much lower prices than the small markets. These establishments offer products and services for the whole society, from economic classes A to E. In this context, it is necessary to analyze the consumers that aim to reducing costs (considering locomotion, given that these supermarkets are located in downtown), those who prefer the quality of products and those intermediaries, who seeks for low prices and check the product quality. V. 16, p , abril,

17 10 CONCLUSIONS Analyzing the research by a macroeconomic point of view, covering all the concepts, features and other aspects arising from the marketing for this study, it is possible to observe that all these factors evaluated, lead this sector to economic growth, not only in this sector but also in the country, since the members of this trading system - sellers and consumers involve a large number of direct and indirect participants that involve activities as distributors, industries and farmers. In conclusion to the data collected and bibliographic analysis, it is possible to verify that the retail establishment of foods studied present strong arguments for their customers come back and become loyal. There were many factors that led these customers become recidivists, but three aspects are the most relevant. First, due to the friendship and loyalty to the owner of the establishment, this positive relationship between satisfaction and loyalty has important implications for marketing that seeks the retention by establishing relational transactions with customers. For this strategy to succeed, we must invest in the right customers. The relations of relational exchange, as well as loyalty, have very strong affective component: the commitment. Thus, through the establishment of loyalty and / or identification of loyal customers, the company will have a set of clients with high potential for the relationship. Subsequently, is the economy of transport expenses (due to the proximity), and finally, the quality of services offered, in other words, consumers expect that in neighborhood markets there are products to fulfill their daily needs, because of that, the proximity of the residence is among the three chosen factors. In relation to the supermarket, customers expect variety of products, parking and promotions, because they go shop there once a month. These results reinforce the analysis of Parente (2000) which found that the consumer is sensitive to good service. It is different results from those found by Solgaard and Hansen (2003), by which the price, among others, is one of the significant variables for the consumer when choosing a supermarket. In this study, this variable did not show a dependent relationship, that is, did not affect the behavior of the interviewees. The research data show that most consumers purchase for necessity, emphasizing some non-trivial situations such as holidays and family events. With respect to influences to buy, the results show that friends and family members are key influencers, as they set a relationship of trust. Another important indicator in the study was related to the variable promotion, indicating that it does not directly influence the consumer to attend or not the neighborhood market. The results also indicate that the location of the supermarket is very important, influencing customers to go to the grocery store more often, so, this factor of proximity of residence also contributes to customer loyalty, indicated by the number of repetitions of weekly and monthly purchase. Regarding the neighborhood market consumer profile the results show that most of these consumers have aged 26 to 65, are female and attend daily or at least twice a week these establishments. With respect to time attending these establishments, this varies from two to five years. For consumers interviewed who attend larger markets, the vast majority attend them sporadically or in promotional specific days that choose to buy the products, regardless of the classification of them on sale. In V. 16, p , abril,

18 relation the reasons for attending larger markets, the main one is the diversification of products and services and subsequently forms of payment. It is observed the direct influence related to consumer behavior and the decision to buy or not from a particular establishment, the influences are many aspects, and these may include a pre-established profile, as identified in the study. The interviewees do not consider the price factor as deductible to buy in supermarkets, but the fact of locomotion, preference of quality of products offered and distinguished service in small markets. The owners of the analyzed stores provide benefits and profits for customers. In the analysis by consumers, purchases of this type can result in a higher amount of expenditure in the end of month and reduce the real income. The results show that most consumers evaluated is loyal to establishments analyzed by several aspects that, for them, are considered of great importance, however, by comparing the results of the quality with satisfaction, it can be observed that consumers do not choose the supermarket by the highest quality of its services, but by the satisfaction that these services provide to them. Since, in their buying behavior, personal factors directly influence the choices, in addition to rely on owners and maintain a relationship of friendship, is chosen markets situated at short distance, close to their respective homes, also through the perception that the products are of good quality and independently of relatively higher prices than comparing with large markets. It can be also seen in the study with the owners that their grocery stores are strategically placed on the market and that they know the real needs and aspirations of the target public, because the good service is visible and, for them, fundamental, once the public are not only consumers, the vast majority is part of a relationship of friendship and professionalism that keeps the markets as the first option, overcoming, the deficiencies and weaknesses that neighborhood markets have. It was observed that the neighborhood markets, assertively, are guided by the market and not by the internal environment, given that this aspect can lead to bankruptcy even those firms that provide a good structure, but do not observe the market in which they operate. Thus, there is a favorable marketing structure for the expansion of neighborhood markets. Still, the neighboring owner concerns about the future of your business are many and varied, from the attention that should be given to the customer in the store, as with the actions of competition that attacks the weak points. Although the item price have less visibility in this discussion, for not being the most tangible reason in the selection process, the attention to this weak point should be noted. The strategic composed of neighboring markets basically follows the structure outlined by classical authors for the general retail. What gives greater specificity to this business format is the use of the concept of convenience, translated by the proximity of shops and the supply of products at very similar prices to those offered by the hypermarkets. With this price stability, purchases diluted in the month and a significant improvement in its operations, neighboring markets began taking client of large competitors. In this context, the quality of customer service and store environment can make a difference. With regard to the contribution of this article to studies on retail and, more specifically, about the neighborhood markets, was observed the clear certainty that the distribution chain in Brazil, as well as studies on it, is deserving further clarification by researchers. The settings and ways that retailers have assumed, according to the final consumer needs and wants, cause significant changes in marketing strategies and require more specific research on the subject. Thus, it can be said that the V. 16, p , abril,

19 relevance of this work is felt by the relationship established, from the consumer's point of view. It was possible to understand the important relationship assumed by marketing in retail, focused on consumer behavior change in the scope of purchase decisions. 11 LIMITATIONS AND SUGGESTIONS FOR NEW RESEARCHES Regarding the limitations of this study, they are mainly focused on the possibility of extrapolating the results, since this was an exploratory and quantitative research, using representative samples and not qualitative. Another important limitation in the field of research is about the availability and willingness of the respondent to provide correct information or even provide it, a factor that hinders the implementation of search and may change results. Processing information would be interesting to use methods of statistical analysis as factor analysis, which suggests to future research. Although the research objectives have been achieved, the restriction was to evaluate consumer behavior leaving out the strategies used by the owners for customer loyalty, these strategies can be investigated in new research efforts. It is suggested, for future studies, the use of qualitative research (survey) in order to prove the subjective and complex nature of results of quantitative research raised here. To better outline and extent of the work, it is suggested for future studies to evaluate the degree of satisfaction of these consumers by drawing up a list of data with socioeconomic classes and expand the focus of work in other regions of the country. 12 REFERENCES ANGELO, C. F.; SILVEIRA, J. A. G. Varejo competitivo, v. 18. São Paulo: Saint Paul, ASSOCIAÇÃO BRASILEIRA DE EMPRESAS DE PESQUISA - ABEP. Critério Brasil Versão Disponível em: < Acesso em: 11 jun AVERY, J.; KOZINETS, R.; WOODSIDE, A.; MITTAL, B. RAGHUBIR, P. Consumer behavior, 3. ed., Cincinnati: Open Mentis, COBRA, M. O novo marketing. Rio de Janeiro: Elsevier, DIHEL, A. A.; TATIM, D. C. Pesquisa em ciências sociais aplicadas: métodos e técnicas. São Paulo: Prentice Hall, ENGEL, J. F.; BLACKWELL, R. D.; MINIARD, P. W. Consumer behavior, 10. ed. Nashville. South Western College, FURUTA, E. C. Razões de escolha de supermercado de vizinhança como ponto de compra f. Monografia (Bacharel em Administração). Faculdade de Economia, Administração e Contabilidade, Universidade de São Paulo, GRACIOSO, F. Marketing estratégico: planejamento estratégico orientado para o mercado, 6. ed. São Paulo: Atlas, HADDOCK-FRASER, J.; POOLE, N.; DOISHITA, M. The failure of multinational food retailers in Japan: a matter of convenience? British Food Journal, v. 111, n. 4, p , London, V. 16, p , abril,

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