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What are the factors that influence customer choice in the convenience store industry? Use
data and reliable external resources to support your discussion
The convenience store industry is highly competitive and understanding the factors that
influence customer choice is crucial for success in the market. Here are some of the factors that
have been identified as important:
Location: Convenience stores rely on their location to attract customers. A store that is in a
high-traffic area that is easily accessible will be more likely to attract customers. According to a
survey commissioned by the National Association of Convenience Stores (NACS), 83% of
convenience store customers visit a store that is within 10 minutes of their home or workplace.
Product selection: Convenience stores need to offer a variety of products that meet their
customer's needs and preferences. The same survey found that the most popular items
purchased at convenience stores are cigarettes, lottery tickets, candy, and snacks. Other popular
items include beverages, ready-to-eat meals, and personal care products.
Price: Price is an important factor for customers when it comes to choosing a convenience store.
According to a 2020 survey by Statista, 52% of consumers cited price as a reason why they
would choose one convenience store over another.
Customer service: Good customer service is essential in any retail industry, and convenience
stores are no exception. Friendly, knowledgeable staff who can help customers find what they
need and provide a positive shopping experience can help build customer loyalty.
Brand recognition: Customers are often drawn to convenience stores that have a strong brand
presence. A recognizable brand can convey a sense of trust and reliability to customers. Sources:
NACS State of the Industry Report (2021)
Statista Convenience Store Survey (2020)
There are several factors that influence customer choice in the convenience store industry.
According to a study conducted by Nielsen, the top factors that influence consumers' decision
to visit a convenience store are:
Location: The proximity of the store to the customer's home or workplace is the most important
factor that influences their decision to visit a convenience store.
Price: Consumers are looking for value for their money. They are attracted to stores that offer
competitive prices on products and services. 1
Quality: Consumers demand high-quality products, particularly in terms of food and beverages.
Convenience: Consumers are looking for quick and easy access to their desired products,
especially during busy schedules.
Product Variety: Consumers want a wide range of product options to choose from, including
convenience items, food, and other merchandise.
Other influential factors that consumers consider when choosing a convenience store include
cleanliness, displays, customer service, loyalty programs, and promotions.
https://www.statista.com/statistics/1237335/vietnam-number-of-convenience-stores/ Part B. Recommendations.
Based on the analysis above, what recommendations would you make to a convenience store
owner to improve customer satisfaction and retention? Use data and reliable external resources
to support your recommendations.
Based on the factors that influence consumer choice in the convenience store industry, here are
some recommendations for convenience store owners to improve customer satisfaction and retention:
Location: Consider opening stores in high-traffic areas near large residential areas, office
buildings, and other popular destinations.
Pricing: Offer competitive prices on products and services, and use promotional strategies that
reward customers with attractive discounts and deals.
Quality: Provide high-quality products, especially in terms of food and beverages. This can
attract customers looking for fresh, healthy options.
Convenience: Streamline the shopping experience by having a clean, organized store with easy-
to-find products and excellent customer service. Also, consider introducing digital options such
as online ordering and delivery services.
Product Variety: Try to have a wide variety of products that cater to the needs and preferences of different customers.
Loyalty Programs: Offer loyalty programs to customers that reward them with points or other
incentives for each purchase and encourage them to shop more frequently.
By implementing these recommendations, convenience store owners can enhance consumer
satisfaction and retention, which can lead to increased sales and brand loyalty. - Sample
Several factors influence customer choice in the convenience store industry. These
factors can be broadly categorized into store attributes, product assortment, price,
promotions, location, and customer service.
1. Store attributes: The overall experience at a store plays a significant role in
customers' decisions. Store cleanliness, the layout and organization of products,
lighting, and pleasant ambiance can attract and retain customers (Vanderlee & Goodman, 2017). 2
2. Product assortment: The variety and availability of products also impact the
customer's choice. A wide assortment of products allows customers to fulfill their
diverse needs (Alexander, Dibb & Beatty, 2012). Convenience stores that
continuously update their product offerings and stock items that cater to the
specific needs of their customer base have a significant advantage.
3. Price: Customers are sensitive to prices when making purchase decisions.
Competitive pricing is crucial, especially for frequently purchased items like
beverages and snacks (Juhl & Esbjerg, 2007). Finding the right balance between
affordable prices and maintaining profitability is important for attracting customers.
4. Promotions: Attractive promotional offers such as discounts, special deals and
loyalty reward programs can significantly influence customer choice. These
promotions may help increase foot traffic to the store and encourage repeat
purchases (Mansfeld & Manson, 2007).
5. Location: The proximity of convenience stores to homes, offices, or transport
hubs determines their accessibility for customers. Easy access to stores and
sufficient parking facilities can increase customer convenience (Jiang & Zhang, 2016).
6. Customer service: Helpful and friendly staff that provides swift checkout and
assistance to customers is essential. Excellent customer service can differentiate
convenience stores from competitors and foster customer loyalty (Bijmolt, Van Heerde & Pieters, 2005). External Resources:
Alexander, N., Dibb, S., & Beatty, S. E. (2012). Convenience store patronage: the
influence of product assortment, location and cost on customer choice. International
Review of Retail, Distribution and Consumer Research, 22(1), 1-14.
Bijmolt, T. H., Van Heerde, H. J., & Pieters, R. G. (2005). New empirical generalizations on
the determinants of price elasticity. Journal of Marketing Research, 42(2), 141-156.
Jiang, P., & Zhang, Y. (2016). Proximity effects of convenience stores: a spatial analysis
of urban neighborhoods. GeoJournal, 81(4), 517-533.
Juhl, H. J., & Esbjerg, L. (2007). Explaining customer satisfaction with everyday products:
a diary study. Journal of Consumer Satisfaction, Dissatisfaction, and Complaining Behavior, 20, 27-41.
Mansfeld, Y., & Manson, H. (2007). Twenty years after TIA—A retrospective assessment
of US shopping centers. Journal of Shopping Center Research, 14(1), 101-118.
Vanderlee, L., & Goodman, S. (2017). Consumer preferences for sales in convenience
stores. Canadian Journal of Dietetic Practice and Research, 78(1), 26-29.
https://koreascience.kr/article/JAKO202109554061447.page#:~:text=Four%20of%20the
%20most%20notable,store%20choice%20decisions%20of%20consumers.
27473403_Investigating_Consumer_Expectations_of_Convenience_Store_Attributes_in_Emergi
ng_Markets_Evidence_in_Chile (Deloitte 2007) EXERCISE.
The convenience store industry is highly competitive and understanding the factors that
influence customer choice is crucial for success in the market. Here are some of the factors that
have been identified as important: 3
What are the factors that influence customer choice in the convenience store industry? Use
data and reliable external resources to support your discussion.
The description of the convenience store:
Convenience shops appear to be a desirable concept with significant growth potential in
emerging economies as the retailing business becomes more international (Deloitte 2007). The
convenience store market in Vietnam has experienced significant growth in recent years,
according to Q&Me data shows that in 2022, Vietnam has about 6,740 convenience stores, of
which Ho Chi Minh City accounts for more than 2,600 stores (KieT vs Thong 2023).
The convenience store industry in the world in general and in particular in Vietnam, this market
is highly competitive because there are many companies in this market, in Vietnam we have
diverse players from other countries such as Circle K (US), Family Mart (Japan), 7-Eleven (Thai),
GS25 (Korea), Minishop (Japan), B’s mart (Thai), Winmart (VN), Cheers (VN and Singapore). Low barrier to entry:
Simple business model: Convenience stores (C-stores) offer a variety of products and
services, such as food, drinks, snacks, toiletries, and household items.
Low start-up costs: The initial investment to establish a convenience store is low because the
convenience requires a small space for running (source)
Because of these characteristics of this market, understanding the factors that influence
customer choice is important to success in this market. From our research, we found that these
factors have a significant impact on customer choice:
According to the method of expert interview, the result shows trendy Vietnamese consumers
favor well-known brands and stores, which lowers the risk involved in the purchasing process.
They prefer visually appealing shops with friendly employees, a calm environment, and
reasonable prices. However, due to the ease of the shopping time, the affordable bargaining,
which is one of the common habits of Vietnamese consumers including those in Hanoi, a
significant portion of Vietnamese shoppers continue to favor non-branded retail stores and
traditional toad markets. (Bui et al 2021)
Location: Convenience stores are accessible to customers based on how close they are to their
homes, workplaces, or transportation hubs. Customers' convenience may be increased via
convenient store access and ample parking (Jiang & Zhang, 2016). Additionally, according to a
survey commissioned by the National Association of Convenience Stores (NACS), 83% of
convenience store customers visit a store that is within 10 minutes of their home or workplace. 4
Customer service: It's crucial to have an efficient staff that helps consumers quickly and kindly.
Excellent customer service can set convenience stores apart from rival businesses and
encourage repeat business (Bijmolt, Van Heerde, & Pieters, 2005).
Pricing: Customers consider pricing carefully while choosing products to buy. Competitive
pricing is essential, especially for things like snacks and beverages that are regularly bought (Juhl
& Esbjerg, 2007). In addition, according to a 2020 survey by Statista, 52% of consumers cited
price as a reason why they would choose one convenience store over another.
Store characteristics: Consumer decisions are heavily influenced by their whole shopping
experience at a store. Customers can be drawn in and kept in a store by its cleanliness, product
arrangement and layout, illumination, and inviting atmosphere (Vanderlee & Goodman, 2017).
Promotions: Captivating promotional offerings like discounts, exclusive deals, and loyalty
reward programs can have a big impact on consumer decision-making. These incentives might
encourage customers to return to the store and boost foot traffic (Mansfeld & Manson, 2007).
For the first level, researchers concentrate mainly on store attributes to analyze and explain
selection behavior. Four of the most notable attributes are price, classification level, the
distance of the location, and product quality. These four attributes have a significant impact
on the store choice decisions of consumers.
(BUI, T. T., NGUYEN, H. T. and KHUC, L. D. (2021) “Factors Affecting Consumer’s Choice of Retail
Store Chain: Empirical Evidence from Vietnam,” The Journal of Asian Finance, Economics and
Business. Korea Distribution Science Association, 8(4), pp. 571–580. doi:
10.13106/JAFEB.2021.VOL8.NO4.0571.)
https://cafef.vn/cuoc-dua-gianh-thi-phan-cua-hang-tien-loi-
188230406065719706.chn#:~:text=Trong%20khi%20%C4%91%C3%B3%2C%20d%E1%BB%AF
%20li%E1%BB%87u,%2C%20%C4%90%C3%A0%20N%E1%BA%B5ng%2C... (KieT vs Thong 2023)
There are many factors that influence customer choice in the convenience store industry. In
addition to value for money, here are some key factors:
Location: Convenience stores that are located in high-traffic areas are more likely to attract
customers. According to a survey by Nielsen, 90% of convenience store shoppers say that
location is important when choosing a store. 5
Product selection: Customers are more likely to choose a convenience store that offers a wide
variety of products, including fresh food, snacks, beverages, and other items. A study by NACS
found that customers are more likely to visit a convenience store that offers fresh food options.
Customer service: Good customer service is important in any industry, and the convenience
store industry is no exception. A survey by NACS found that 55% of customers said that friendly
and knowledgeable staff were important factors in their choice of the convenience store.
Cleanliness: Customers are more likely to visit a convenience store that is clean and well-
maintained. According to a survey by GasBuddy, 92% of customers said that cleanliness was an
important factor in their choice of convenience store.
Price and promotions: While value for money is important, customers are also drawn to
convenience stores that offer promotions, discounts, and loyalty programs. According to a
survey by NACS, 63% of customers said that they would be more likely to visit a convenience
store if it had a loyalty program.
Overall, customer choice in the convenience store industry is influenced by a variety of factors,
including location, product selection, customer service, cleanliness, and price and promotions.
Convenience stores that can offer a combination of these factors are likely to attract and retain customers.
Gas1B.uddy Nielsen, survey mentioned:
""ConGasvenienceB Storeuddy Shopper Research Report": https Study Finds Clean://wwwliness
Is.n Keyi Factorelsen in.com Choosing/us a/en Convenience Store/"ins -ights Convenience
Store/report News/,201 8201/con8 veniencehttps-store://-shcsoppernews-re.com/gsearchas- reportb/
uddy2-st.udy N-fACSinds,-cleanliness "-keyCon-factorvenience-cho Storeosing Industry Fact-
convenience Sheet-store": https://www.convenience.org/Your-Advocacy/Research/Fact-
Sheets/Convenience-Store-Industry-Fact-Sheet
GasBuddy, "2019's Fuel and Convenience Foot Traffic Report":
https://business.gasbuddy.com/2019s-fuel-and-convenience-foot-traffic-report/ Presentation.
The target of this presentation is following these step Purpose of the report:
(1) Figuring out qualitative factors influencing consumer choices 6
We attempted to figure out which qualitative factors that contribute most
significantly to consumer behavior in the context of convenience store
Methodology: Empirical data and simulated survey
Findings: Price and store layout to be two most important factors
(2) Case study of Circle K and other convenient stores
Main point: find the business performance of Circle K and convenience stores in current and equilibrium scenarios
Methodology: Theoretical hotelling competition + empirical data Findings:
Circle K can achieve better profit by lowering the price
Lower MC cost enables circle K to earn higher profit (3) Recommendation
Based on the relevant discussion from guest lectures and our analysis we will recommend the
management board at Circle K to improve their business performance
The convenience store industry is highly competitive and understanding the factors that
influence customer choice is crucial for success in the market. Here are some of the factors that
have been identified as important: Location
86% of convenience store customers visit a store that is within 10 minutes of their home or workplace (NACS 2023)
Easy access to the store and enough of parking could boost the convenience of the customers (Jiang & Zhang, 2016).
=> The factor that affects customers' decision to visit a convenience store is whether the store is
close to their residence or workplace. Price
Competitive pricing is crucial, especially for frequently purchased items (snacks and beverages) (Juhl & Esbjerg, 2007)
53% describe a positive convenience store shopping experience from the price of the product (Ozbun 2023). Service 7
Stand out from rivals and attract repeat business with excellent customer service (Bijmolt, Van Heerde & Pieters, 2005).
According to Statista survey, 14-15% of customers claimed that the convenience store's
knowledge and friendly, helpfulness is important to choose convenience store. Convenience
Store cleanliness, the layout and organization of products, lighting, and pleasant ambiance can
attract and retain customers (Vanderlee & Goodman, 2017).
A wide assortment of products allows customers to fulfill their diverse needs (Alexander, Dibb & Beatty, 2012).
In a Statista survey, 26% of customers claimed that cleanliness is important in their decision to
shop at a certain convenience store.
=> The entirety of the customer's shopping experience at a store has a significant impact on their decisions.
=> Continuously updating their product offerings and stock items will have a significant advantage. Quality
Provide high-quality products, especially in terms of food and beverages. This can attract
customers looking for fresh, healthy options
Customers are more likely to visit a convenience store that offers fresh food options, 69% of
convenience retailers said their food service sales increased in 2017 after adding fresh food options (Russel 2018) Reference
Jiang Y and Zhang W(2016) ‘Study on the Factors Influencing the Consumer Behavior of
Convenience Store’, Journal of Service Science and Management, 9(05), 501-507, doi: 10.4236/jssm.2016.95051
NACS (2023) Convenience Stores and Their Communities, NACS website, accessed May 23
2023 https://www.convenience.org/Topics/Community/Convenience-Stores-and-Their- Communities
Russell R (2018) Convenience stores up the ante in fresh food, Supermarketnews website,
accessed May 23 2023 https://www.supermarketnews.com/deli/convenience-stores-ante-fresh- food 8
Juhl HJ and Esbjerg L (2007) ‘Convenience store customers' store and product attributes
preferences’, Journal of Retailing and Consumer Services, 14(4), 249-258, doi:
10.1016/j.jretconser.2006.12.003
Ozbun T (2023) Factors that describe a positive convenience store shopping experience for
consumers in the United States as of January 2022, Statista website, accessed May 23 2023
https://www.statista.com/statistics/1367243/factors-positive-shopping-experience-c-stores-us/
Bijmolt TH, Heerde H, and Pieters, R (2005) ‘New Empirical Generalizations on the
Determinants of Price Elasticity’, Journal of Marketing Research, 42(2), 141-156, doi: 10.1509/jmkr.2005.42.2.141
Vanderlee L and Goodman S (2017) ‘Convenience stores and healthy food choices: Availability
and accessibility of healthier food options’, The Journal of Community Health, 42(6), 1117-1122, doi: 10.1007/s10900-017-0345-2
Alexander N, Dibb S and Bea-atty S (2012) ‘Factors affecting customers' trust in Chinese B2C e-
commerce’, Journal of Marketing Management, 28(1-2), 18-40, doi: 10.1080/0267257x.2011.614759
Statista. (2020, February 3). Reasons for choosing a convenience store according to consumers in
the United States in 2019. Retrieved from
https://www.statista.com/statistics/1006991/factors-that-influence-consumers-to-visit- convenience-stores-us/
https://www.statista.com/statistics/761035/factors-important-when-selecting-most-frequently- used-c-store-us/ 9