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Bianchi, Constanza (2009) Investigating Consumer Expectations of Convenience Store Attributes in Emerging Markets: Evidence in Chile. Journal of International Consumer Marketing 21(4).

© Copyright 2009 Haworth Press

Investigating Consumer Expectations of Convenience Store Attributes in Emerging Markets: Evidence in Chile

Dr. Constanza C. Bianchi School of Advertising, Marketing, and Public Relations Queensland University of Technology Gardens Point Campus, 2 George Street, Brisbane Queensland, 4001 Australia Telephone: [61 7] 3138 1354 Fax: [617] 3138 1811 E-mail: constanza.bianchi@qut.edu.au

Abstract Convenience stores (c-stores) constitute a successful format in developed markets such as North America and Europe, but there is scant research in the retailing literature. Even less is known about convenience store behavior in emerging markets. This study attempts to provide a better understanding of consumer expectations regarding convenience stores in a Latin American context. Interviews were held with Chilean consumers to identify salient convenience store attributes. Further, a survey was applied to 400 consumers and results show that the salient attributes for Chilean consumers are related to the access dimension of convenience such as access to the store, parking facilities and hours of operation. Keywords: Convenience stores, salient attributes, retailing, Chile.

speed of checkout. 2003. For example in Japan. 7-Eleven became the largest worldwide convenience store chain in March 2007. As an example. 1997. 1998). 2008). such as greater incomes.. Only a few studies of convenience stores (c-stores) are found in the literature and they have all been held in a developed market context (Lassk. Sparks. due to consumer preferences convenience stores have organized themselves over the last decades to offer retail bank services (Rapp and Islam. 1989).. postal services. These studies show that salient convenience store attributes for consumers are location. store layout.Investigating Consumer Expectations of Convenience Store Attributes in Emerging Markets: Evidence in Chile INTRODUCTION Convenience stores (c-stores) constitute a successful format in developed markets such as the U. 1 . For instance Tesco. knowledge of sales associates. Canada. even larger than the worldwide number of McDonald’s stores (PlanetRetail. Additionally. Europe. c-store offerings have expanded to include ATMs. 2007). operating 34000 stores in 17 countries. Welsh et al.. Worthington. increasing number of women in the workforce. 2000. consumers value quick and easy shopping excursions. little is know about consumer expectations of convenience store attributes and preferences of products and services in different countries. service. Sutton and Rafaeli. 2006). banking services. 1987). The demand for more convenience shopping reflects several societal trends. is planning to open its first Express convenience store this year in Shanghai (Rigby. Heller. and parking. the UK’s biggest retailer. copy centers and internet access (Gaboda. Driven by time pressures.S. 2006. Yet. dry cleaning services. and Japan. Rapp and Islam. and competition (Benway et al. product assortment. technological progress. 2000. Large multinational retailers are also opening convenience store formats in different markets. 1988.

However. Chile has the most developed retail industry in the region and the highest rate of retail sales per capita (AC Nielsen. Chilean retailers compete strongly in this small market. 2 . Peru. 2006). 2006). little is known regarding preferences and expectations of consumers regarding convenience retailing in Latin America. What do consumers in Latin America expect from convenience stores? To answer this question we need to understand better consumer’s expectations of convenience stores in specific countries. and this has these companies to look for new ways to improve profitability and share of wallet by introducing and developing new retail formats.. convenience stores are predominantly in the introduction stage.The retailing industry is becoming more global and convenience stores seem to be an attractive format with large growth potential in emerging markets (Deloitte. more women incorporated in the work force. 2006). this part of the world it potentially very attractive for smaller retail formats such as convenience stores. Given the importance of the Chilean retail sector within Latin America. In the Latin American region. and Mexico (Bianchi and Ostale. Chilean retailers have expanded abroad and are becoming increasingly relevant retail actors in Latin American markets such as Argentina. such as greater income. Furthermore. The convenience store retail format in Chile has grown rapidly due to the advanced level of development of the retail industry. Research shows that consumers have a substantial purchasing power as a group and evidence shows that smaller scale retailers fit the needs of emerging consumers quite well (D'Andrea et al. However. Colombia. and most consumers still shop at neighborhood stores. 2007). Within Latin America. 2006). it is important to understand consumer behavior and expectations regarding convenience store retailing. as well as changes in society. and less time for shopping (D'Andrea et al..

Kelley. Data were collected through both qualitative and quantitative methodologies. In-depth interviews were held with Chilean consumers to identify the salient convenience-store attributes when shopping in this format. Nickols and Fox. 1989. which means less time but more income (Bellante and Foster. 1982. a survey was applied to a sample of 400 consumers. Most of the studies focus on the convenience orientation of consumers (Anderson. the main objective of this exploratory study is to identify the salient attributes of retail convenience for Chilean consumers. LITERATURE REVIEW Despite the acknowledged importance of convenience. These studies view convenience as anything that helps the consumer to reduce its time and effort during their shopping process. it has received relatively little attention in the retailing literature. 1972. more women are working outside their homes. All these conditions have led consumers to look for new ways to simplify their lives in a modern and stressful environment. 1971. Brown. According to the literature. Yale and Venkatesh. Bucklin. 1980). 1986). 1958. 1963. On one hand. 1984. 1986). 1986. 1983. several factors have influenced convenience store consumption preferences. Reilly. Overall this study attempts to provide a better understanding of consumer expectations regarding c-stores in a Latin American context. Also. 1989. 3 . Strober and Weingberg. which can assist managers of local and international convenience store chains to focus their efforts on local salient store attributes. Gross and Sheth. but are mostly focused on the product market.Thus. Morganosky. 1986). Additionally. to assess consumer preferences and expectations regarding c-stores. the lives of consumers have become more complex with less time for shopping (Bellizzi and Hite. Further. more people are living by themselves in smaller families and even alone (Yale and Venkatesh.

there is a large amount of studies that address consumer store patronage and store choice in the retailing literature (see Pan and Zinkhan. p. Furthermore.. hours of operation. Consumers perceptions of convenience is found to have a positive effect on their satisfaction with the service provided (Berry et al. belong to the domain of service convenience” (Berry et al. all belong to the concept of service convenience. 2002. payment conditions. although some research has found a positive relationship between monetary price and perceptions of product quality (e. product quality. checkout speed. hours of operation..1). store atmosphere. Attributes such as location. Other studies suggest that consumer demographic variables may also be related to store patronage (Bellenger et al. Regarding the effect of price on store choice. employee service and assistance. 2002). Dodds et al. Zeithaml and Berry. 1993. nonetheless there is no evidence of a significant relationship between low-price offerings and retail store choice (e. parking and store access.. This may be explained because consumer’s responses to low prices may vary depending on the product category and retail format. Korgaonkar et al.g.Although studies on convenience stores are scant. although there is no one clear definition of a convenience 4 . 1991). Darley and Lim. store location. These studies suggest that several attributes affect consumer’s preferences and expectations of retail stores. or credit availability. such as operating hours. Lumpkin and Burnett. 1998. Sirohi and McLaughlin. 1977. such assortment. although no consensus exists on this relationship. price level. consumer’s perception of product and service quality is also found to be positively related to the store patronage (Baker et al.g. 1991). 2006). 2002.. and parking facilities. 1985). 1996). In a retailing context. Berry and his colleagues looked at convenience in a service setting and define it as “all types of convenience that reduce consumer’s time or effort in shopping. friendliness of salespeople.. service....

2006. (2000) argue that convenience in a retailing context is a multidimensional construct and the authors develop a model of convenience retailing with four dimensions: access convenience. Sparks. can draw patrons to a store (Hansen and Deutscher. late-night hours.store. and that charges above-average prices compared to large supermarkets that generate largevolume sales. 2000. This scant research suggests series of attributes that are salient for providing customer satisfaction with c-stores. 2000). 1977). and telephone and internet access. search convenience. 1988. Only a limited number of academic papers have specifically investigated the c-store industry (Lassk.. for the purpose of this paper we will define it as a small. 2000. and a limited line of merchandise. centrally located store. Empirical evidence shows that easy accessibility has a high correlation with the choice of a shopping centre (Bellenger et al. such as longer operating hours or ample parking. This is consistent with another study that finds that the main reason for consumers not patronizing a c-store was inconvenient location (Lassk. store hours. Moreover. Access convenience concerns the speed and ease with which consumers can reach a retailer. feelings of personal safety. It considers attributes such as accessible location. Welsh et al. 1989). featuring ease of access. This dimension considers helping consumers find the right 5 . possession convenience.. Worthington. The speed and ease that consumers can make contact with retailers powerfully influence their retail choices. parking availability.. appearance of the store and employees. Sutton and Rafaeli. cleanliness of the store. Seiders et al. proximity to other stores. Search convenience is the speed and ease with which consumers identify and select products they wish to buy. and product assortment. In addition to a convenient location. such as customer service. Rapp and Islam. 2003. other convenience incentives provided by retailers. 1977). and transaction convenience.

1999). thus this may drive some shoppers to 6 . 2003). 1987). and selects the products they want to purchase.. Time savings elements for consumers such as fast checkouts are also found to influence their retail choice (Lambert. Louviere and Gaeth. In addition. 1999. Other literature suggests that consumer’s evaluations of the store atmosphere also affects their perceptions of value and their store patronage intentions (Grewal et al. One stop shopping offers consumers possession convenience by bringing together a vast variety of goods and services in one store.. especially product displays. One study found that when shopping at convenience stores. 1979). timely production or timely delivery. Koelemeijer and Oppewal. and is found in some cases even more important than price for store choice (Stassen et al. Transaction convenience concerns how quickly and easy it is to do the business with a firm. consumers also enjoy talking to salespeople.products through focused merchandising. Once the consumers selects a store. and considers attributes such as different payment methods. and seek a social experience outside their home. knowledgeable sales persons. they still must participate in a transaction to complete the purchase. Possession convenience is the speed and ease with which consumers can obtain desired products. quick service. The literature supports this and several studies have found that merchandise assortment is positively related to retail store choice (Arnold et al. It results from a retailer’s strong in-stock position. and signage. but not too friendly so that they don’t engage in extended conversations (Sutton and Rafaeli. and well designed service systems. well trained employees. customers want courteous and helpful clerks. 1983. packaging. 1988). and visual merchandising practices. Transaction convenience refers to the speed and ease with which consumers can effect or amend transactions.. intelligent store design and layout. customer interactive systems.

2003). Rialp and Rialp. Following this call for more research. however most of the studies of convenience stores have been held in developed markets such as the U. Ten in-depth interviews were 7 . (Berry et al. in depth interviews were held with consumers to identify customer expectations regarding the salient attributes for convenience stores.. and are there gender differences? These questions attempt to have a deeper understanding of convenience store consumer behavior in developing market context. Europe (Welsh et al. this study utilized two phases. 2002). In phase one. this study will draw from the work of Seiders et al.. the main objective of this study therefore is to assess what are the most salient attributes of convenience store retailing for Latin American consumers.. 2006). RESEARCH METHODOLOGY To assess the previous research questions. The saliency that consumers assign to c-store attributes across nations may vary due to economic and cultural differences. Several authors have manifested the need to do more research in emerging markets (Cavusgil et al.stores in which they find friendly salespeople (Tauber. In fact a one study found that there is a positive correlation between consumer’s perceived warmth of the service clerk and perceived quality and loyalty to the store (Lemmink and Mattsson.S. 1998). 2006).. Thus. and Japan (Rapp and Islam. this study specifically addresses the following research questions (1) What are the convenience store preferences of Chilean consumers? (2) Which are the main reasons for Chilean consumers shopping at convenience stores? (3) What attributes are the most salient for Chilean consumers when shopping at convenience stores and are there gender differences? (4) What products and services are important for Chilean consumers to find at convenient stores. 1972). 2005. (2000) as a theoretical base and starting point for exploring consumer attribute saliency for convenience stores in a different country context. Focusing on the Chilean convenience store industry.

bread. three cashiers. Informants were recruited by the first author through a pre-specified procedure. and questions about patronage and choice motives along with expectations on products and services. Drawing from the interviews. The degree of importance of convenience store attributes for consumers was measured on a five-point scale. and a bank teller machine. there were five hundred and thirty convenience stores in Chile.held with consumers of different sex and ages that lived in Santiago. a new generation of convenience stores has emerged in Chile. it is a new retail format with a high potential growth as urban suburbs expand. Although supermarkets 8 . sixteen convenience store attributes emerged (see Appendix 1). All items were retained and the final survey was applied on January 2006 to 400 graduate and undergraduate students of a local university in Santiago. and sequential questions. eggs. and especially in the capital. This new generation of convenience stores is targeting higher income consumers for whom time can be more important than money. and demographics were also included. and a rapidly growing sector. over the last fifteen years. The main characteristics of the convenience format in Chile are stores of one thousand square meters. such as milk. in phase two. The interviews ranged from 27 to 53 minutes.C. along with informal credit. From the interviews as well as the literature. Although these are still popular in low-income neighborhoods. with approximately four hundred products. According to A. Convenience Stores in Chile Convenience shopping in Chile has traditionally consisted in corner grocery stores that provided basic-items. Nielsen (2006). Although convenience stores are still in the introduction stage in Chile. Santiago. phrasing. by the end of 2006. with an average of 40 minutes. a survey instrument was developed and pre-tested to identify potential errors in terms of wording. Real names were changed for purposes of confidentiality.

convenience stores in Chile have chosen an “every day convenient price” strategy. which means that prices are five to ten per cent higher than supermarkets. Copec.cl). During the 90s.cl). Service stations were the pioneers of Chile’s new generation of convenience stores. Esso opened initially the Tiger Market convenience format.esso. and by the end of 2006. After opening their first outlets in mid-1980s they have continued to dominate the market.repsolypf. owned eighty six convenience stores in Chile (www.com). introduced a new drugstore format. with larger stores and wider product assortment. By the end of 2006. they recently entered the convenience industry. an international oil and gas company opened in Chile in 1995 a convenience store format Full. and bathroom services.offer discounts and “every day low price” strategies. pet food. the leading drug store chain. and by the end of 2006. Shell started in 1996 its convenience store business under the format Select. Chile’s drug store chains have also followed the steps of the service stations. convenience stores have developed from three different sources: gas service stations. After experimenting with cosmetics and drugs for years. In Chile. During 1980s. bank teller. and offered basic food products. as they have expanded and occupy strategic locations on the streets. and bakeries (See Appendix 2).cl). Copec was the largest convenience store chain in Chile. with one hundred and thirty outlets all over the country (www. and overtime also introduced the On The Run format. snacks. a local gas and forestry corporation. and by the end of 2006. drug stores. which offered in addition to drugs and beauty products. opened its first convenience store inside a gas station in 1985. foreign gas corporations such as Esso and Shell opened convenience stores in Chile. YPF had seventy stores in Chile (www.shell. and 9 . FASA. Repsol YPF.empresascopec. Esso owned one hundred and ten convenience stores in Chile (www.

Although the academic literature has identified salient attributes for general store patronage. By 2005. the analysis of this data identified consumer expectations regarding the salient attributes when shopping at convenience stores in Santiago. candies. cheese.video rental. bakeries such as Castaño.cl). and diversified its assortment. On April 2003. sausages. and Lo Saldes ten stores in Santiago (www. and bread.cl. where consumers can find products such as meat. prepared food (sandwiches). these interviews attempted to identify specific attributes for convenience stores. but of different ages and marital status were interviewed. and have incorporated elements such as better lighting. By the end of 2005. FASA had sixty convenience drug stores (www.cl).castano. The main objective of the interviews was to understand the reasons that take consumers to prefer shopping at convenience stores. Finally. and services such as extended hours of operation. Following (Spiggle. 1994). in streets of high traffic or walking 10 . Stores are expected to be located close to homes.fasa. Interviews Interviews were conducted individually to explore and identify attributes that consumers considered important when shopping at convenience stores. By the end of 2006. and Lo Saldes. vegetables. offices. and identify the most salient store attributes for consumers regarding these stores. Castaño operated thirty nine stores. Five men and five women of middle income levels. and the central part of Chile.losaldes. wines and liquors. www. location. One of the salient c-store store attribute for Chilean consumers is location. This format is more similar to a small grocery store. competitor SalcoBrand opened their convenience store format Ok Market”. the company had twelve stores “Ok Market” with plans to open 12 more in Santiago. have also evolved towards a convenience store format.

parking space. and in a safe environment. respondents expect to access the store quickly. One must be able to enter and exit without problems: purchase. and find an available parking space easily. and with long hours of operation. 54 years. “The transaction must be quick. consumers expect to find everything they need quickly. things that usually traditional neighborhood stores don’t have” (female. and therefore. need to buy a few products. Respondents also mentioned that accessibility to the store was important for them. pay and leave quickly” (male. When driving. close to home or work. “Good access. employed). several interviewees mentioned that although 11 . employed). It is a faster purchase. employed). “An ideal place for people that forget to buy things at the supermarket. 27 years. and hopefully entrance for disabled. product assortment of the store is also relevant. Another salient attribute mentioned is hours of operation of stores. employed). and with longer hours” (male. Although low prices or promotions are not mentioned as salient attributes for consumers when shopping at c-stores. “They must have good location. with the basic products” (female. purchase and leave as quickly as possible. Respondents want to be able to enter the store. Other reasons that emerge from the interview data for choosing convenience stores is being in a hurry. In addition. Another important attribute for convenience stores mentioned in the interviews was being assisted quickly by sales clerks in an easy purchase process.activity. 27 years. in a smaller place. which must be longer than traditional grocery stores. Consumers also expect to be able to return or exchange product that are not fresh or suitable. 44 year. with no delay. close to home/work.

Overall. store layout.000. longer hours of store operation. when shopping at a convenience store. low prices. discounts and promotions. payment options. they can’t be too high or consumers will not be willing to purchase the merchandise. Respondent had an average age of thirty eight years old (ranging from eighteen to sixty five years). product assortment. as well as the literature reviewed. The survey asked respondents to evaluate the importance of each attribute mentioned. which can afford to shop at convenience stores in Chile. Survey In phase two. available cashiers. Data were collected at the beginning of 2006 over a three week-period. on a 5-point likert 12 . These are location. a structured questionnaire was designed in Spanish using a subjective rating scale based on the attributes that emerged from the interviews and supported by the literature. the interview data. employee service and assistance.prices are expected to be higher than grocery stores. parking availability. close to home or office. product returns and guarantees. identified 16 retail cstore attributes that were salient for consumers according to the four dimensions of convenience (see Appendix 1). The average net family annual income was US$ 36. which corresponds to the middle to high-income segment of the Chilean population. and sixty four per cent of respondents were married. safe environment. until the 400 surveys were completed. and sit down tables to have a quick meal in the store. The final survey was self-administrated to a sample of 400 undergraduate and graduate students in a business school of a Chilean university located in Santiago (200 male and 200 female respondents). The instrument was then refined for clarity with minor changes based on the feedback received before the final survey. The preliminary version of the questionnaire was pre-tested with five consumers that live in Santiago (2 men and 3 women) to assess the flow and readability of the text. quick and easy access to the store. tidy and clean store.

In addition. on the other hand. and mean scores for the convenience store attributes. Results of top box percentages are shown in Table 1. Cross-tab analysis of gender differences showed that male consumers have higher preferences of convenience stores located in gas stations. It also measured some demographic variables such as gender. to 5 = very important). especially Copec. DATA ANALYSIS AND RESULTS The analysis of the data addressed four specific research questions regarding convenience store expectations and preferences. age. Results are exposed in Tables 1 – 4. This is probably due to the fact that Copec is the largest convenience store chain in Chile with the largest number of retail outlets located all over the country. Tables show top box percentages. income level. Female consumers. and marital status. and services evaluated in the questionnaire. than female consumers. Question 1: Consumer Store Choice The objective of this question was to identify consumer store choice. specialty formats such as Ok Market and FASA Drugstores also have higher preferences among Chilean consumers.scale (1= not important at all. Question 2: Reasons for Choosing to Shop at Convenience Stores 13 . products. probably looking for a wider assortment of drug and beauty products and delicatessen. The questionnaire asked respondents to choose the convenience store were they shopped more often. Gender differences where statistically tested through a t-test applied to mean scores with a significance level of 95 per cent. (Insert Table 1 here) The data shows that convenience stores that are attached to gas stations have a high preference among consumers. with 21 per cent of preferences. prefer to shop at convenience stores such as FASA or OK Market.

. are the most important reasons to shop at a convenience store. (Insert Table 2 here) According to the data. and in a hurry. are among the most important attributes for respondents. The questionnaire asked respondents to mention the most important reasons for shopping at a convenience store. close to home/work. a t-test was applied to mean scores. The survey asked them to evaluate the importance of each attribute on a 5 point scale (1= not important at all. and these show that payment options is significantly more important for male consumers than female consumers in Chile. and finding a store 14 . This is consistent with the in-depth interviews. Top box percentage results are shown in Table 2. followed by parking availability. For male consumers. Gender differences are identified in the data. (3). Question 3: Salient Convenience Store Attributes The objective of this question was to identify the salient attributes for consumers when choosing a convenience store to shop. and being in a gas station and decides to buy. Mean results for each attribute are shown in Table 3.The objective of this question was to identify the reasons that lead consumers to shop at convenience stores instead of other formats. (2). (Insert Table 3 here) Quick access to the store. where they mentioned that women prefer to pay a little more when they are in a hurry in order to avoid a supermarket. 2000). and payment options. To look for significant gender differences in the responses. closeness to home/work. the most important reasons for Chilean consumers shopping at convenience stores are: (1) buy few things. to 5= very important). Cross tab analysis shows that female consumers shop at convenience stores more because they need to buy a few things and don’t want to go to a supermarket. These are related to the access dimension of convenience (Seiders et al.

This may be due to the fact that capital cities in Latin American countries are 15 . can food. A first conclusion of this study is that convenience stores located in gas stations are the most preferred by consumers in Santiago. Sodas.close to home or work is more important for females than male Chilean consumers. Overall. and this is even stronger among male consumers. Mean score results for each product and service item are shown in Table 4. (Insert Table 4 here) Bank teller machines and drug store services are considered the most important services for consumers when shopping at a convenience store. are the most important products for consumers of convenience stores. DISCUSSION AND CONCLUSIONS Due to the aggressive level of competition in the retailing industry worldwide. and milk products. candies. and snacks. this study attempts to provide a better understanding of the most salient attributes for consumers in a Latin American context when shopping at convenience stores. These items are more significantly more important for male than female consumers. Considering gender differences can also help c-store chains to develop segmentation strategies. In both cases. Question 4: Salient Food and Products The survey also asked them to evaluate the importance of several food products and services on a 5 point scale (1= not important at all. to 5= very important). followed by fresh bread and prepared food. they are significantly more important for female than male Chilean consumers. it is important to understand consumer’s expectations of convenience stores in different countries. Female preferences also differ from men in that they value more pet food. Emphasizing these salient attributes can be essential for retailers in order to increase store patronage and achieve loyalty from consumers. This may be explained by the traditional role of men and women in the Latin society.

but for other occasions. which derives in heavy traffic and finding parking is a big problem for consumers.. This attribute is not mentioned in previous literature and may be more salient for Latin American consumers than consumers developed markets. especially for women consumers. the data also show that consumers prefer to shop at convenience stores when they need to but only a few things.(2000)´s proposal that retail convenience is a multi-dimensional construct. These are followed closely by pharmaceutical products..g.very large in size and concentrate more than 50% of the total population. Third.. the most important attributes for consumers (with mean score evaluations over 4) are quick and easy access to the store. and parking availability. This supports previous literature which finds that convenience has to do with reducing consumer’s time or effort in shopping (e. are sodas and juices. the most important for Chilean retailers (mean score over 4). Another interesting finding is that safe store environment is considered a relatively salient attribute for Chilean consumers (mean score= 3.75). and drinks. The results support Seiders et al. Regarding products and services. or are in a hurry. Berry et al. the most salient attributes for Chilean consumers are related to the access dimension of convenience. Secondly. due to the unsafe institutional environment in emerging countries. These results contribute to the retailing literature because they identify relative saliency of attributes related to the four different convenience dimensions. 2002. convenience store formats that are not attached to gas stations are also important. Fresh bread is considered very important for 16 . snacks. and that may have more time for shopping. However. 2000). For example. and especially for female consumers that probably look for a wider assortment of pharmaceutical products and delicatessen. due to the location close to home/work.. payment options. Lassk. although more research is needed to understand the relative importance of these dimensions in a c-store retail context. and bank tellers.

LIMITATIONS AND FUTURE RESEARCH A major limitation of the current study lies in the sample used. or for companies that are thinking in opening these chains in this part of the world. several recommendations emerge for convenience store chains located in large cities of Latin America. due to the selection of the sample solely targeting the middle-up income market of a large city. This would probably achieve to attract a greater proportion of consumers that seem less willing to shop at these formats. 17 . Despite the limitations. and available parking. First. candies and a snack. Consistent with the previous recommendation. who consume this product on a daily basis and is a result of the Hispanic roots of consuming fresh bread in the mornings and evenings. this study has identified significant differences. which is the regular way consumers think about these formats. Specialty c-store formats such as “Ok Market” are interesting due to their positive evaluations by respondents and wider assortment of products for countries that are growing in income. Future research can replicate this study in other Latin American markets and look for other demographic differences as well. The choice of a database of 400 graduates of a high-level university in Santiago limits the generalizability. a second suggestion has to do with designing strategies that try to position convenience stores for specific demographic or psychographic segments. More importantly. as well as some interesting commonality. convenience store retailers should provide conditions that assure the quickness and ease of the purchase. Managers must target their marketing communications to frequent shoppers which will increase the likelihood that they experience positive returns from their promotional efforts.these consumers. by having good access to the store. the findings should enhance our knowledge of Latin American consumers. and more than just a place for buying drinks. between attribute saliency of shoppers in Chile. Based on the results of the study.

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Appendix 1: Convenience Store Salient Attributes for Consumers C-Store Attributes Quick Access to the Store Parking Availability Close to Home Close to Work Hours of Operation Tidy and Clean Store Employee Service and advice Safe Environment Store layout Payment Options Product returns and guarantees Available Cashiers Product Assortment Low Prices Discounts and Promotions Sit down tables Dimension of Convenience Access Convenience Access Convenience Access Convenience Access Convenience Access Convenience Search Convenience Search Convenience Search Convenience Search Convenience Transaction Convenience Transaction Convenience Transaction Convenience Possession Convenience Possession Convenience Possession Convenience Possession Convenience 22 .

1. 125 m2 --1.200 m2 40 m2 --.000 m2 200 m2 70 m2 50-80 m2 50-100 m2 350 m2 400 m2 Number of Stores in Chile 130 ESSO SHELL YPF BIG JOHN CASTANO LO SALDES SALCO BRAND FASA 110 86 70 13 39 10 12 60 23 .250 m2.Appendix 2: Convenience Stores in Chile by 2006 Format Name COPEC Pronto Puente Punto On The Run Tiger Market Select Express YPF Full. Servicompras Big John Castaño Lo Saldes Ok Market Drugstore Store Size 140 m2 .

5% 10.8% 21.8% 17.0% 3.3% Table 2: Main Reasons for Shopping at a Convenience Store Reasons for shopping at CStores Buy few things Close to home/work In a hurry In gas station and decides to buy After Supermarket closing time Overall (n=400 ) 23.Table 1: Consumer Convenience Store Choice Preferences C-Stores in Santiago Copec OK Market FASA Select Shell On the Run Castano Big John Lo Saldes YPF Others Overall (n=400 ) 21.0% 6.2% 8.5% 1.0% 15.5% 6.3% 14.8% 24 .7% 14.5% 19.5% 6.9% 0.3% 18.2% 18.0% 3.8% 12.3% 22.7% 5% 4.3% 5.8% 7.3% 0.3% 11.5% 8.7% 20.0% 21.2% 16.0% 5.8% 15.8% Women (n= 200 ) 19.8% 22.5% 15.3% Men (n= 200) 22.5% 12.7% 14.1% Women (n= 200) 23.2% 12% 12.7% 20.5% 14.3% Men (n= 200) 22.

51 Men (n=200) 4.89 3.54 3.48* 3.91 3.82 3.85 3.24 4.47 Significance level 95%.65* 3.Table 3: Consumer Preferences for Convenience Attributes C-Store Attributes Quick Access to the Store Payment Options Parking Availability Close to Home Employee Service Hours of Operation Tidy and Clean Store Product returns & guarantees Safe Environment Available Cashiers Product Assortment Low Prices Close to Work Store layout Discounts and Proms Sit down tables Overall (n=400 ) 4.65 3.65 3.75* 3.05 25 .88 3.15 3.22 4.91* 3.65 3.21 4.83 3.89 3.26 4.49* Women (n=200) 4.30* 2.05 2.11 4.49 3.90 2.38 2.98* 2.62 3.67 3.99 3.16* 4.89 3.89 3. p< 0.22 3.90 3.42 3.85 3.11 3.57* 3.84 3.74 3.90 3.91 3.13 3.56 3.

06 Overall (n=400 ) 4.43 Men (n=200) 4.07 2.72 4.92* 2.09 3.92 3.32 3.17* 3.38 2.70 3.13 3. books.40 2.51 2.28 3.13 3.45 3.31 2. flowers Cheese and ham Baby products Perfumeries Fruit and vegetables Music.46 2.95 2.01 2.18 2.98 3.81* 2.19* 2.88 3.31* 2.27* 2.12* 2.85 3.56* 3.44 2.51* 3.34* Women (n=200) 4.48 3.71 3. and juices Candies.91* 2.17 2. p< 0.49* 2.63* 3.04 Men (n=200) 4.69 3.33 2.26 2.37 3.84 2.99* 3.81 2.06 3.48 3. Fax Payment Centers Video Return Internet (wifi) Cellular charger Photo services Laundry Service Food Products Sodas. ice creams and snacks Alcohol and energetic drinks Fresh Bread Prepared Food Newspapers and Magazines Milk Products Cigars Canned products Gifts: chocolates.21* 3.50 3.09 3.42 3. stationary products Pet Food Meat Overall (n=400 ) 4.68 3.01 2.58 3.45 2.19 3.19 2.22 2.43 2.68 2.27* 3.16 3.05 26 .34 3.04 2.39 2.37 2.62* 3.98 2.00* 2.Table 4: Consumer Preferences of Products and Services for Convenience Stores Services Bank Machine Drug Store Bathrooms Photocopy.08 Women (n=200) 4.98 2.06 2.53 3.19 * Significance level 95%.15 2.89 2.89 3.64 3.

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