MAJCAFE

Boon Chui Teo, Khairun Najwa Bt Ahmad Rathi, Siti Nor Syahirah Bt Mohd Saidi
Arshad Ayub Graduate Business School, Universiti Teknologi MARA

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Abstract

New technology ideas have continued to change the retail industry landscape spurring innovation across the convenience store industry. Convenience stores (C-stores) are now considered as the fastest-growing retail vertically. Retailers are increasingly challenging the notion that c-stores should not be just mere pit stops. Modern c-stores are becoming convenience destinations. Recent developments witness new C-store chains popping up in Malaysia such as KK Mart, Happy Mart, Orange Mart, Family Mart and Irispay to compete along with conventional ones such as 7-Eleven and those stores subsumed with a petrol station. New C-stores have features beyond standard convenience offerings with digital technology to capture customer attention and drive store traffic. New players are expanding its brick-and-mortar presence, just like how Amazon shook up the C-store sector in 2017 with new checkout-free, ultra-convenient shopping experience. In the wake of this new retail innovation, how will other C-store retailers position themselves one step ahead of the game? This paper examines store image attributes influencing customer satisfaction of C-stores amongst the conventional one. These stores are considered as plain, outdated and at the boredom stage of its business lifecycle. C-stores may need to deliver a new experience that today’s digital consumers are looking for. The methodology utilized a survey questionnaire approach on 255 shoppers together with store observation and personal interview at a C-store franchise chain. Findings found personnel, pricing, merchandising and product assortment as predictors of customer satisfaction of C-stores. Findings had managerial implications for C-store retailers focusing on what innovations in-store image attributes can impact competition. Knowing how quick consumers are embracing technological advances in this C-store sector is imperative to stay ahead in this game.

Keywords: Convenience store, Customer satisfaction, Pricing, Personnel, Product assortment, Store image, Merchandising