How grocer’s size impacts consumer trust? Explore the latest grocery updates and information in 2024 with us!
Katie Thomas is leading the Kearney Consumer Institute, an internal think tank at global strategy and management consulting firm Kearney. Tanya Moryoussef is a manager who works at the firm’s consumer practice.
Who has the strong position for getting the victory when we are talking about battling for consumers: larger chain retailers or nimbler, smaller independents? Does size matter?
A recent Kearney Consumer Institute (KCI) brief digs into consumer trust of institutions, basically of large and small businesses. When the overall suggestion was asked, consumers informed that they had trusted small businesses to large businesses in a 3:1 ratio. This notion might make the larger businesses mimic the intimacy of a small business.
But when we got into certain specifics, the margin was not that big, and in fact, big businesses were on the priority list. For food and grocery, 65% of consumers selected large retailers and chains over smaller options.
It has turned out, consumers are quite specific in what they are looking for, but the way to create some trust varies as per the size. Big business has an upper hand in wide selection and consistency. Small ventures make their way in interaction, perception, and craft.
Consumer trust is based upon the foundation of honesty and consistency, but how it is built differs in the size of the business. By getting into the inner layers, we can have better knowledge and understanding of how to build trust within the consumer’s community, and the approach might vary. The research has showcased that some businesses are not focusing on their USP’s and inherent advantages, they wasting some strong assets in mimicking “the other guy’s” strengths.
Consumers who would go for small grocers stated that their purchasing intentions were almost always coming down to their wish to invest in the community and the belief that the products being sold were “good.” Many comments are received such as, “I love to support my local companies as I know they majorly help the community much than larger companies.” Or: “Food is pure and not treated with harmful chemicals/Doesn’t travel much from to market/Local people have more vested in the community so want to treat it right.”
The analysis also reminded that consumers often shop at more than one store and they strongly prioritize their purchases. “I visit the farmers market for fruits and vegetables and grocery store for the rest,” it was noted another consumer.
We have even heard some comments such as, “The place was close to my home, [has] a great rewards program, good quality of foods, and the customer service is great,” and “I am able to finish my all shopping in one just place and I can purchase everything I need, ranging from beauty products to food items. I can even buy flowers and household products such as toilet paper and clean products as well.”
On price and convenience, we heard, “I can get everything I require in one place at good prices,” and “It’s nearby and convenient; I even love chains as well.”