The Structure of São Paulo Street Markets: Evolving Patterns of Retail Institutions

Abstract

Development in emerging economies leads to a cohabitation of traditional and modern forms of retailing. This diversity allows for centuries' old consumer behavior patterns to continue along with new options. The street markets or Feira Livres1 of São Paulo, Brazil demonstrate how consumption patterns are culturally determined. Participant observation, both in supermarkets and at feiras, and interviews with consumers and vendors are used to investigate consumer shopping patterns, along with evolving patterns of retail structure. We find that informal markets, such as the feira, are able to coexist with modern, Western‐style retail institutions, partly because of ingrained food preparation habits and deep‐seated consumer impressions about superior qualities offered by feiras (e.g., the perceived freshness of the produce). Our findings support the Natural Selection Theory of retail development in that we find evidence of adaptation. Specifically, the supermarkets in Brazil have evolved to include departments that imitate some of the popular characteristics of the feiras.

Retail patronage behavior and shopper typologies: a replication and extension using a multi-format, multi-method approach

“…This intense competition has led to the cross-utilization (retailers borrowing the "best practices" of their competitors) of retail strategies. Known as the dialectic process, these trends have resulted in the blurring of distinctions between retailers (Maronick and Walker 1974;Levy and Weitz 2004;Zinkhan et al 1999), and have resulted in the evolution (Dreesman 1968) of the "Big Middle" retailer (Levy et al 2005).…”

When Does It Pay off to Link a Brand Name to a Country?

“…Personal relationships thus become essential for the exchange relationships (Zinkhan et al, 1999). Moreover, these consumers not only know the store owners and personnel and, thus, feel loyal to them, but also like interacting with other store patrons (Goldman et al, 1999;Baron et al, 2001;Zinkhan et al, 1999).…”

“…The ability of a retailer to provide opportunities for socialization and entertainment to its customers is thus an important attribute of retailer brand image (Goldman, Krider, & Ramaswami, 1999;Baron, Harris, Leaver, & Oldfield 2001;Zinkhan, Fontenelle, & Balazs, 1999). For example, consumers might go to IKEA to purchase furniture, appliances, or home accessories as well as to enjoy the famous Swedish meatballs and Swedish tapas offered in IKEA's in-store eating facilities or relax in IKEA's bistro/exit café after shopping.…”

“…In other words, these consumers view small stores as a social outlet because the shopping environment is conducive to social interaction (Goldman et al, 1999). Zinkhan et al (1999) argue that the feira (street markets in Brazil) "represent foci of cultural resistance to the homogeneity of consumption patterns", because the feira is a place for meetings that foster social relationships (p. 11). Hence, small stores and traditional retail institutions, especially in developing countries, are an integral part of consumers' lifestyles because they support national cultural values.…”

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“…Dick and Basu (1994) conceptualized loyalty as the relationships between relative attitude towards an entity (brand/services/store vendor) and patronage behavior of the consumers. Consumers become loyal to certain vendors/retailers from whom they expect good quality products and prices (Zinkhan et al, 1999). The important of personal interaction between vendors and customers with warm and friendly services eventually develops customer loyalty (Abu and Roslin, 2008).…”