Evaluating retail format extensions: The role of shopping goals

Although retail extensions have become a common growth strategy, more than 50% fail to survive. The question what drives extension success, therefore remains a key issue. This research tests the hypothesis that expectations about the attributes of extensions, and as a result of their evaluations, differ according to the shopping goals that consumers pursued. These retail expectations might, however, be effectively managed by providing consumers with additional information. In an experiment a common grocery extension (convenience store) is examined using two predictor variables, namely the shopping goal and the provision (or not) of price information. The findings indicate that price expectations about the extension and as a result of extension evaluations systematically differ according to shopping goals. This study also reveals that depending on whether trial or repeat purchases are more important, retail management can influence consumers expectation by providing (or not) price information.