Retailing Elements That Break Customer Restraints: A Conjoint Analysis Approach

Abstract

Traditional retailing remains to be the most utilized platform for fast-moving consumer goods transactions. The need to understand the dynamics between the physical retail stores and how it affects consumer behavior is still of utmost importance. The study aims to determine retailing elements that are most influential in terms of increased spending. The study led to the following insights: on a non-controlled and controlled environment in terms of spending cap, the most prominent retailing element in terms of influence is the presence of directional signages with the degree of importance at 25.08 and 22.38 respectively, while in a controlled environment, high level of product assortment follows with the degree of importance at 16.47. As a point of parity between the two spending environments, presence of product bundle as a retail element, replacing the high level of product assortment, is influential on uncapped spending scenario with the degree of importance at 21.88, while being one of the least influential in capped spending with the degree of importance at 6.26. The results were gathered via conjoint analysis statistical method covering eight distinct retail elements through a nationwide sampling dispersal. Keywords: promotion, atmospheric, point-of-purchase display, value-added service, purchase behavior, conjoint analysis, fast-moving consumer goods, retailing