Proximity

It is essential for business operators to put location at the top of their minds. Locations of
retailers must be accessible to the potential target group of customers (Kotler et al., 2004).
Consumers tend to prefer stores that are easily accessible to them (Eppli et al., 1996). Thus, a far
distance has a negative effect on the selection of a store through reducing frequency of customers
visiting a store and  and businesses with highly accessible locations are more likely to have more
consumers. Therefore, distance from home and distance from workplace would have a
relationship with the amount of purchase from retail stores.

Despite the advantages of having accessible location, some contend that instead of
emphasizing location since consumers seek to optimize their “total shopping costs” (Ailawadi et
al., 2004).  This suggests that in some instances; consumers may pay more consideration to other
factors (e.g., price promotions and bulk shopping) than location in determining the store of
purchase (Eze et al., 2015). For example, when raw material consumers of sugar for production
need to travel to the supplier, the consumers consider the amount of raw material they purchase
in order to limit the total shopping cost (e.g. transportation).  Therefore, the proximity of the
client to the business may affect the amount of the bulk purchase price of the raw materials.

H3. Proximity of the client to the supplier has a positive correlation with the amount of
bulk purchase price of raw materials.

Price Discounts

Sales promotion techniques are instruments that seek to increase sales of products and
brands, usually in a short time (Wierenga & Soethoudt, 2010), because they act in the
consumer’s mind as a benefit to it, thus generating a consumer behavior (Yusuf, 2010).
Therefore, it is believed that sales promotion has a positive influence on the purchase intention.

Moreover, when suppliers provide price discounts for bulk purchases or when the item
under consideration is a seasonal product such as the output of harvest, the client may purchase
more goods than can be stored in its own warehouse (Yang, 2002). For example, when mangoes
are in season and price discounts applied by different suppliers, the consumers consider the
amount of raw material they purchase in order to take advantage of the discount they get since it
lessens the shopping cost. Therefore the price discounts that the consumer get may affect the
amount of the bulk purchase price of the raw materials.

H2. Price discounts has a positive correlation with the bulk purchase price of raw
materials