Consumer Behaviour in Supermarkets and Food Markets: A Mixed Study in Peru

Introduction

Food markets are commercial establishments that exercise significant memorable participation from the sociocultural point of view and even in municipal development, where the provisioning and marketing of food and staple products play a vital role in their continuity (Maruyama et al.,2015). In turn, supermarkets are commercial premises aimed at offering consumer products of various brands, including food, cleaning supplies, clothing, etc. (Nandonde and Dadzie, 2019). Unlike other establishments, supermarkets display the products and generate the purchase through self-service (Saha and Narayanan, 2020; Maruyama et al.,2015).

The products and services offered by each of these commercial establishments differ from one another since the food markets offer a wide variety of fresh products in a friendly and cordial environment that also makes it possible to renegotiate prices to the establishment, while supermarkets offer a self-service system with a wide assortment of products, spacious environments, promotions, discounts, and the option of returning the product that the customer has purchased (Nuthalapati et al.,2020).

According to the latest census conducted by the National Institute of Statistics and Informatics [INEI] in Peru “Mercado de Abastos” (Food Market) 2016, a total of 2,612 markets can be identified nationwide, of which 47.2% are concentrated in Lima city, i.e., 1,232 food markets. Likewise, the number of supermarkets in Peru is 456, of which 72% are located in Lima (INEI, 2021).

In the northern area of Lima city, there are approximately 2 million consumers, many of whom are responsible for predominantly middle-class households. 95% of consumers shop in food markets, and 76% go to supermarkets (Gestión, 2020). Both consumers prefer offers and promotions; they are willing to try new experiences because they have evolved due to the influence of technology. Today, consumers are less traditional and conservative, so if a new product or service is launched tomorrow, they will be willing to buy it as long as the establishments meet their expectations (Gestión, 2020). This research aims to answer the question: What factors influence consumer behavior when shopping in food markets and supermarkets?

Literature Review

Consumer Behavior Factors

There are theories about consumer behavior, which is described as the mental and psychological processes that occur in customers’ minds when deciding to purchase a good or service according to the order of the hierarchy of their needs (Singh and Verma, 2015; Ooi et al., 2011). Maslow classified the needs of human beings according to the level of importance for survival: Basic or physiological needs (these are basic needs for survival); security (referring to the need to feel safe); affiliation (it is the need to belong to a social group and feel accepted by it); recognition (all the needs of recognition, self-acceptance and the acceptance of others). Thus, it is possible to know why you choose one over another. To understand why these behaviors occur, three main factors intervene in the purchase decision process: personal, cultural, and psychological factors (Wang et al., 2020; Schiffman, 2005).

Given the above, it is inferred that the personal factor refers to the set of characteristics of a group of people or individuals, such as age, personality, occupation, lifestyle, economic situation, life cycle, interests, values, etc. (Ooi et al., 2011). Each of these characteristics is important for consumers since these are the pillars that finally motivate the purchase decision. People go through different stages of life, and, at each one, they get new experiences according to the types of needs arising. Likewise, the socioeconomic level can differentiate consumers when deciding where to purchase (Mahama-Musah et al., 2020).

The cultural factor in consumer behavior has the function of influencing directly or indirectly the position and decision-making. The need for belonging of each individual leads to the search for people sharing the same interests and characteristics. Within this group, there is always a group of people or an individual who plays the role of leader. In many cases, this role is almost always played by a direct family member. Likewise, religious beliefs, ethnicity, race, customs, and values taught over the years by the same family and other institutions were necessary to determine the consumer behavior of users in society (De Matos and Bonfanti, 2016; Cordova-Buiza et al., 2022a).

The psychological factor influences the consumer through motivation, perception, learning, beliefs, and attitudes (Vargas Melgarejo, 1994). Motivation is the internal or external state of consumers that pushes them to a certain purchase behavior to satisfy a need. Perception is defined as stimuli that the consumer receives through the senses, and these are identified as new sensory experiences that are transformed into recognizable events. This is the stage of the purchase decision process in which consumers select, organize and interpret, and can compare, identify and choose the best purchase alternative. Learning indicates modifications in users’ behavior through experience due to an interaction with the environment. This is because of impulses, stimuli, responses, and behavioral reinforcement. Beliefs and attitudes directly impact consumer behavior, as each consumer grows up with certain opinions on every subject (Rocha-Vallejos et al., 2022). Attitudes show the liking or disliking that a person may have towards a brand. That is why the attitude that the consumer has towards a good or service will be essential for its acquisition. The attitude is related to the consumer’s feelings, whether they are favorable or unfavorable. This behavior was learned through an experience that will determine the purchase decision (Vargas Melgarejo, 1994; Kantono, et al., 2020).

Currently, there is a wide variety of studies on the factors that influence consumer behavior, in which it is possible to analyze their scope and implications. As a result, many elements of consumer purchase behavior can be evidenced, such as the psychological factors influencing purchase behavior in supermarkets because of the favorable or unfavorable attitudes that the consumer expresses towards the experience received. Studies also describe that income and education levels can determine purchase behavior (Mang’unyi and Govender’s, 2019; Cordova-Buiza et al., 2022b).

Likewise, Ortiz Ospino and Peralta Miranda (2015) determine in their research that consumer behavior regarding the preference of the place for buying is very demanding since it is not only based on price but also on the quality of the products and service that the establishment can offer and, above all, on the satisfaction of needs. The study also says that consumers in the city of Barranquilla make their purchases in neighborhood stores and supermarkets, being the first most visited by their proximity, everyday nature, ease of purchase, and low-cost products, thus creating satisfied customers.

Similarly, Melchor Cardona and Lerma Cruz (2016) identified in their research that proximity and the purchase of products per unit are important for purchase decisions in stores. Likewise, the reasons for purchasing in supermarkets are promotions and getting everything in one place. In addition, the cultural factor was identified as relevant in the purchase decision in the store.

For Zhao et al. (2021), consumer behavior, product choice, beliefs, and psychology have a representative value for business markets. The understanding of this contributes to the implementation of marketing strategies that achieve effective sales and also explore new alternatives that ensure the satisfaction of the customer’s needs and concerns to know how it influences the purchase decision. 

Consumer behavior factors play an important role in decision-making since, for consumers, the brand and prices of a product are some of the most important aspects when buying in a supermarket. Similarly, it is said that the gender of each consumer plays a key role in the purchase decision, as they have different perceptions and motivations, as men go with a purchase idea, while women use their senses when shopping (Jaén s.f.; Degeratu et al., 2000).

In the study by Ramprabha (2017), the psychographic, demographic, and geographic factors that influence the consumer when choosing the place to shop are described, resulting that age, occupation, and lifestyle are determinants for deciding since these places satisfy the needs and meet the expectations. Knowing these data is very helpful for retail stores since it helps them to develop attraction strategies and to know how to segment their target customers (Prasad and Aryasri, 2011).

Likewise, studies by Cakici and Tekeli (2021) and Jung et al. (2021) showed how consumers react to prices when shopping. They also describe the interaction between consumers and the impact of their perception of supermarket prices, resulting in consumers reacting positively to the stimulus of low prices, but purchase intention decreases when they perceive that the price is very high. LeDoux and Vojnovic (2013) also state that consumers shop in supermarkets because of the discounts and overlook stores close to their homes.

To complement the above, the article by Hernández Chacín et al. (2017) aims to show the influence of families on purchase decisions in hypermarkets and supermarkets. It shows that decision-making is influenced by the vision and family culture. Likewise, Goldman and Hino (2005) demonstrated that cultural and ethnic factors impact consumers when shopping.

People’s behavior is not related to a particular factor but to multiple factors that interact between them. Therefore, it must be understood that consumer behavior is not an exchange of buying and selling but a set of sociocultural and psychological factors that motivate a consumer to make a decision when buying (Muñoz et al., 2017; Hampson et al., 2021; Panzone et al., 2016).

On the other hand, Guíñez Cabrera and Cornejo (2016) explain that the experience and knowledge of each consumer influence a quick purchase decision, while some need more information to make their purchase decision. Additionally, they note that a consumer with no experience in the acquisition of a product becomes more involved than other consumers. The more interested a person is in acquiring a good or service, the more informed and the higher the level of involvement will be.

Likewise, McNeill (2006) states that supermarkets take into account the culture of the inhabitants of the place where the establishment is located to make a sales promotion, while Kopetz et al. (2012) show how consumer behavior changes according to the variety of products the establishments have. Sorensen et al. (2017) state that when consumers make their purchases to go on a trip, supermarkets are the preferred establishments, and this happens because these points of sale offer practicality when purchasing. Likewise, Verhetsel (2005) states that the differences between stores and supermarkets depend on where the establishment is located. Neighborhood stores must develop micromarketing strategies to retain consumers since they know their interests and habits so that they do not opt for supermarkets.

Therefore, the general objective of this research is to determine the factors that influence consumer behavior when shopping in food markets and supermarkets. Thus, it is known what drives consumers to make purchase decisions.

Methodology

This research is carried out under the mixed-descriptive approach, as it applies the collection of quantitative and qualitative data through surveys and interviews. Its nature is descriptive, as only one variable is analyzed. Additionally, it is considered cross-sectional, since the information is collected at a single moment. Finally, the design is non-experimental, as the variable under study is not modified.

For the quantitative approach, the probabilistic method was chosen. The population was provided by the newspaper Gestión (2020), which states that the northern zone of Lima has a population of 2 million consumers. Therefore, an infinite population was determined, and the formula was applied considering a confidence level of 95% and a margin of error of +/- 4.9%. A 50% probability of success and failure was also considered. As a result, a sample of 400 people was obtained. For the qualitative approach, the non-probabilistic method was chosen, and 15 key people were selected for the research.

The unit of study is the consumers who reside in the northern area of the province of Lima, of both sexes, between 18 and 50 years of age, and who are frequent customers of food markets and supermarkets. People under 18 or over 50 years of age and those residing elsewhere than in the districts of Northern Lima will be excluded.

The technique used to collect quantitative data was the survey, for which a questionnaire with structured questions was used as an instrument. For the qualitative part, the interview method was used, and the instrument was a form with structured questions. For the quantitative and qualitative approaches, both instruments were taken from the research by Espinel et al. (2019).

For the compilation of this research, the Excel database was used. To process the quantitative data, the SPSS tool was used to obtain the information. In the qualitative part, the recordings of the video calls were reviewed to analyze and obtain data from the interviews with key people.

A total of 400 surveys were conducted through the Google Forms platform. In addition, 6 interviews were conducted with market traders, 6 interviews with supermarket stockers, and 3 interviews with marketing and economics experts, resulting in a total of 15 interviews.

Results

Quantitative Analysis

Demographic Data

The following are the results of the research for demographic data. Out of the 400 respondents residing in the northern area of the province of Lima, 52.8% are female, and 43.7% are male; 62.30% are between 18 and 28 years old, followed by 25% who are between 29 and 39 years old, and 12.8% of respondents are between 40 and 50 years old, of which 5.5% are housewives; 19.80% are salaried employees; 25% study and work; 13.80% are independent professionals; 33% are students; and 3% have another occupation. Likewise, 46.75% of the respondents state that their monthly expenses range from 1,200 soles to 1,600 soles, while 21% say that their monthly expenses range from 1,700 soles to 2,000 soles, 9% state that their expenses are from 2,500 soles to 3,000 soles, and, finally, 23.25% state that they have no control over their expenses. Out of the 400 respondents, 63.75% pay in cash, 26.0% with debit cards, 9.50% with credit cards, and 0.75% buy on credit.

Table 1: Consumer Purchase Preference

Table 1 shows that 57.3% prefer to shop at food markets, and 42.8% prefer supermarkets.

On Personal Factors 

 Table 2: Personal Factors

Table 2 shows that 39.5% of the total population surveyed strongly agreed that personal factors influence consumer decisions, 47.0% agreed, 6.0% neither agreed nor disagreed, 5.3% disagreed, and 2.3% strongly disagreed

Table 3: Measures of Central Tendency

Table 3 shows a mean of 4.16, which means that, on average, the 400 people surveyed agreed with the characteristics of the personal factors. Likewise, a variance of 0.843 was found, i.e., there is a low dispersion in the responses regarding the mean.

On Cultural Factors

Table 4: Cultural Factors

Table 4 shows that 26.0% of the respondents strongly agree that cultural factors influence consumer decisions, 57.8% agree, 6.8% neither agree nor disagree, 8.0% disagree, and 1.5% strongly disagree.

Table 5: Measures of Central Tendency

Table 5 shows a mean of 3.99, which means that, on average, the 400 people surveyed agreed with the characteristics of the cultural factors, and a variance of 0.784, which means that there is a low dispersion in the responses regarding the mean.

On Psychological Factors 

Table 6: Psychological Factors

Table 6 shows that 28.00% strongly agree that psychological factors influence consumer decisions, 51.7% agree, 12.3% neither agree nor disagree, 7.8% disagree, and 0.3% strongly disagree.

Table 7: Measures of Central Tendency

Table 7 shows a mean of 4.0, which means that, on average, the 400 people surveyed agreed with the characteristics of the psychological factors, and a variance of 0.737, which means that there is a low dispersion in the responses regarding the mean.

Qualitative Analysis

Fifteen interviews were conducted with key informants representing the reference groups, and the interviews were coded (see Table 8). 

Table 8: Coding of Interviews

The interview involved asking specific/structured questions to describe the characteristics of the factors that influence consumer behavior from the point of view of the market traders and supermarket staff, as well as to know the opinion of the experts in Economics and Marketing since they have a better overview of the research topics.

On Personal Factors

Respondents (CMDO) stated that most consumers prefer to shop at the food markets because they find fresh products, affordable prices, shopping facilities, and proximity to their homes. They also stated that most consumers are housewives, who shop every day in the morning, students who shop 2 to 3 times a week, and working people who shop once a week, usually on Sundays.  

[…] Here they come to buy because they find fresh products from today, but in a supermarket, you don’t know how many days they have been stored. For example, the chicken is refrigerated and no longer has the same flavor, but in a market, the chicken is fresh from today because it was processed in the morning and is ready to be sold. 

Likewise, the interviewees (RCM) stated that the consumers they observe in supermarkets between 9 am and 4 pm are mostly women; they are the ones who do the shopping. Most consumers go to supermarkets because they find a variety of products of different brands, prices, etc., i.e., they can make comparisons and choose according to their needs.  

[…] Many times, I have seen customers comparing prices, offers, and presentations of products, such as milk, which come in a carton box, in a can, in a bag, etc.

They generally make weekly purchases, and the most popular aisles are groceries, frozen foods, and cleaning supplies. In the afternoons, there are other groups of consumers, such as groups of friends and professionals, who do not spend much time shopping. The most popular sections for this type of consumer are snacks, beverages, and prepared foods.

[…] Most of the consumers I see are women. They are always in the vegetable section, looking for the best offers and products. 

On Cultural Factors 

Respondents (CMDO) stated that consumers shop in food markets because of the ease of finding products at retail. It is also more feasible to ask directly for discounts, and consumers know the markets through reference groups, which, in many cases, are their family members, friends, etc. 

[…] I have customers who came with their mothers when they were kids, and now they are married and come to shop with their children. 

[…] I have customers who buy vegetables for the week, and because they buy in large quantities, they ask me for a discount. I agree to give them a small discount, and I give them herbs free for their meals so that they do not go to another merchant.

Likewise, interviewees (RCM) stated that consumers go shopping in supermarkets because of the product advertisements they have seen on television and social networks, as well as because of the offers and payment methods since they can use their credit or debit cards.

[…] approximately 60% out of the 100% of customers who come to buy pay with credit or debit cards.

On the Psychological Factor

Respondents (CMDO) state that consumers shop in food markets because they feel they save money and find better quality products than they can find in supermarkets. Respondents (RCM) consider that consumers shop in supermarkets because of the hygiene, the offers, the status they can get, and the proximity they have to the products when choosing and comparing brands.

To conclude the qualitative analysis, economics and marketing experts (EEM) were interviewed and stated that consumers compare prices in supermarkets and food markets because of the benefits each establishment offers. There is also a higher percentage of consumers who make daily purchases in the markets. Thus, supermarkets should know consumer behavior in depth (connect with the unconscious or reptilian brain of the user) to generate new strategies to attract customers to the food markets.

[….] It is much easier for them to make impulse purchases in supermarkets than in food markets because they use cards and have no control over the disposal of money.

The economics expert also stated that, in Northern Lima, there are more food markets than supermarkets, and traders tend to have different prices in their stalls, unlike supermarkets, where prices do not vary daily. The expert also mentioned that customers in food markets are dependent because they must request the products they need from the traders. However, customers in supermarkets are independent because they are the ones who select the products according to their needs.

[….] Within the same market, prices may vary from stall to stall despite selling the same products, while in a supermarket, prices may remain the same for 3 or 4 days. 

[….] They need it, look for it, choose it, and buy it.

Discussion

Housewives and students were also identified as frequent consumers of food markets. In turn, other types of consumers, such as salaried workers and independent professionals, who go to supermarkets more frequently, were also identified. The payment method used by consumers in food markets is cash, while in supermarkets, they use credit or debit cards and cash; housewives and students are the ones who make purchases in cash.

It was found that consumers choose their preferred place taking into account personal factors such as proximity to their home, product replenishment, practicality when purchasing, variety of products, offers, and the information provided about the product, resulting in 39.5% agreeing strongly with the established factors, followed by a majority of 47.0% who agree, 6.0% do not agree or disagree, 5.3% disagree and 2.3% of the population strongly disagrees with the factors mentioned above.         

Table 3 also shows a mean of 4.16, which means that, on average, the 400 respondents agreed with the characteristics of personal factors. Likewise, a variance of 0.843 was found, which means that there is a low dispersion in responses regarding the mean, i.e., they agree with the personal factors. In addition, the cultural factors include ease of payment, retail, negotiation, services, family atmosphere, hygienic conditions, technology, and friendship, resulting in 57.8% of respondents agreeing, 26.0% strongly agreeing, 8.0% disagreeing, 6.8% neither agreeing nor disagreeing, and 1.5% strongly disagreeing. Similarly, Table 5 shows a mean of 3.99, which means that, on average, the 400 respondents stated that they neither agreed nor disagreed with the characteristics of the cultural factors, and a variance of 0.784 is estimated, which means that there is a low dispersion of responses regarding the mean.

Similarly, in the psychological factors, it was observed that consumers go to these establishments because they perceive or have the sensation that prices are more accessible. As a result, 28.00% stated that they strongly agreed, 51.7% agreed, 12.3% neither agreed nor disagreed, 7.8% disagreed, and 0.3% strongly disagreed. Table 7 also shows a mean of 4.00, which means that, on average, the 400 respondents agreed with the characteristics of the psychological factors, and a variance of 0.737 was observed, which means that there is a low dispersion of responses regarding the mean.

In the interviews with the supermarket staff, such as cashiers and stockers, and those interviewed in the food markets, such as merchants, they corroborated the research information regarding the types of consumers, their age, their behavior, their payment methods, their perspectives, etc. Similarly, the Economics and Marketing experts gave a general explanation from their knowledge of the markets about the reason and the factors by which consumers choose their preferred place to shop.

Likewise, in the interviews with the CMDOs and RCMs, it was identified that the most outstanding characteristics in the personal factors are proximity, prices, and the quality or variety of products. Similarly, for the cultural factors, characteristics such as retail, discounts, offers, and ease of payment were found. For the psychological factors, the perception of savings and hygiene when shopping was also found. Finally, the EEMs indicate that consumers of food markets and supermarkets compare the benefits these establishments provide and will decide to shop where they find more advantages, such as ease of payment, variety of products, brands, and proximity to their homes.

The study by Gestión (2020) shows a preponderance in food markets (95%) over supermarkets (75%), while this research shows similar results, with 57.3% in food markets and 42. 8% in supermarkets, i.e., in Northern Lima, consumers go more frequently to food markets than supermarkets. In the dimension of personal factors, this coincides with the research by Ortiz Ospino and Peralta Miranda (2015) since, in both studies, it was found that consumers in food markets and supermarkets shop taking into account the proximity to their homes, simplicity when purchasing, and the variety of products.

In the dimensions of the cultural and psychological factors, a similarity was found with the study by Melchor Cardona and Lerma Cruz (2016), since, in the first factor (cultural), offers, payment methods, retail, and the family environment were found, as well as in the second factor (psychological), the perception and sensation of each consumer on the products, savings, interaction, and the status this one may get when purchasing.

Food markets are establishments where fresh products are offered and have a familiar treatment with consumers, while supermarkets expose the products (Mou and Benyoucef 2020). Likewise, supermarkets generate purchases through self-service (Maruyama et al., 2015). This information coincides with the results of the qualitative research since the key informants MCDO and RCM state that consumers find products of today and the treatment towards customers is direct. Similarly, the EEM experts remark that, in supermarkets, customers personally choose and take the goods they want to purchase.

The study by Mang’unyi and Govender (2019) precisely explains the factors that lead consumers to purchase a certain product from a supermarket, starting from psychological and cultural factors, which are the ones that determine the purchase behavior, allowing supermarkets to generate strategies to attract new customers, as stated by our EEM experts when they say that they must know in depth the behavior of consumers as well as their culture and traditions to attract consumers from food markets.

There were limitations during the research, mainly in data collection. The surveys were conducted by virtual means due to the pandemic. In addition, the surveys were conducted by consumers who were not part of the target population, which generated invalid data and delayed the collection of valid data. The same occurred in the qualitative part, as the interviewees had difficulties coordinating their schedules. Despite this, the objective of the research was achieved, i.e., to learn about the characteristics of the factors that influence consumer behavior in the food markets and supermarkets of the northern area of the Province of Lima.

As proposals for future research, similar studies can be applied in food markets, local grocery stores, and supermarkets for comparison. In addition, consumer purchase behavior and purchase decisions can be studied with other factors. A correlational analysis can also be performed to investigate how one variable significantly influences another. Finally, a study can be conducted with a larger sample to gain a deeper understanding of the factors that influence consumer behavior.

Conclusions

The objective of this research is to determine the factors that influence consumer behavior when shopping in food markets and supermarkets. Among all the characteristics of the personal factor, proximity, product quality, and prices are the most important. For the cultural factor, familiarity, retailing, and bargaining predominate. Similarly, for the psychological factor, the main characteristic is the perception of prices since consumers perceive a sensation of savings when making their purchases.

It is also evident that housewives and students are the most frequent consumers in food markets, but independent and salaried workers are the most frequent consumers in supermarkets due to the aspects already mentioned. In addition, it is observed that cultural factors are deeply rooted in consumers’ customs since they are transmitted from generation to generation. Personal factors are those that prevail among consumers in Northern Lima due to their characteristics, which leads them to resort to these establishments as a point of purchase.

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