The Importance of Marketing Research in Improving Supermarket Operations and Sales

Grocery retailing has experienced continuous changes since the turn of the century, with the most significant occurring during the past forty years. Originally, tea stores offered a limited selection of dry grocery products. Over the years, new formats were introduced, and the supermarket emerged toward the end of the depression. Since then, the supermarket concept has been expanded dramatically, to the super stores of today. In addition, price discounters of the early 1960s have evolved into super warehouse stores. Marketing Research has also evolved from basic applications to sophisticated, computer-aided techniques. As the grocery industry grew and became more and more competitive, marketing research applications and methods were being perfected. Customer origin studies provide pertinent information for a store\u27s immediate trade area. Customer attitude studies measure perceptions and shopping habits for a store\u27s customer base, while consumer attitude studies also include detailed information regarding customer image perceptions and competition. Focus groups can also be used to determine store improvements or changes. Market analysis studies concentrate on site location research to obtain information for the purpose of expanding existing stores or constructing new stores. Five methods of forecasting are discussed. The information presented strongly supports and advocates marketing research as a management tool, to facilitate the decision making process while reducing the element of risk, and maintaining or increasing sales and market share