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In the context of increasing competition between chained retailers and family-owned retailers, it is key to understand the customer's format choice. Using a logistics regression (i.e., binary logit) model, we explain customers' preference to buy in supermarkets or in small-scale, mom-and-pop stores like nanostores. We collect a representative sample of over 110 surveys from customers in the district of Surco, Lima, Perú, which is a representative area of the features of Lima's residents. We asked customers to focus on analyzing their preference between two retail formats: modern channel (i.e., big-box retailers, supermarkets, and hypermarkets) and traditional channel (i.e., mom-and-pop stores, nanostores). Our surveys included factors pertaining retail format attributes as well as factors related to the purchasing process. The results showed that time available for purchase and a comparatively better perceived service at a mom-and-pop store (i.e., nanostore) are significant factors that explain a higher probability of selecting these retailers, while a better store's ambience benefits more supermarkets. The overall discrete choice model is able to explain 65% of the variance using pseudo R-squared of the actual format choice decisions.

Inner city centers not only provide opportunities for shopping, dining, and entertainment, but with their lively atmosphere and other vital attributes, also create attractive destinations for residents and tourists alike. However, inner city retailing, potentially the most important reason to visit an inner city, is facing serious competition from e-commerce and out-of-town shopping malls. Dying inner city centers have become a severe issue in recent years, worldwide. To counteract this devastating trend and ensure the vitality and viability of inner city centers, stakeholders from the public and private sectors regularly join their forces in initiatives to strengthen urban structures. However, academic insights into the contribution of retailing on perceived city attractiveness remain sparse. Relying on an extensive data set that combines survey and observational data, the authors are able to quantify a variety of inner city characteristics, ranging from its store and service provider portfolio to its ambience and accessibility, and measure their association with its perceived attractiveness. They show that a city's portfolio of retail stores is not only related to people's perceptions of the city's overall attractiveness but also perceptions of its ambience. However, not all retail categories contribute the same way; while the presence of clothing stores or booksellers is strongly associated with cities' ambience as well as attractiveness, other retail categories such as optometrists or electronics stores are negatively associated with consumers' inner city perceptions. Importantly, these relationships also depend on the size of the focal city. Based on their results, the authors provide important managerial and societal implications on how to leverage the local retailing environment to improve inner city attractiveness. For example, the results may inform (local) governments on which sectors to subsidize in order to attract those store and service provider categories that benefit inner city attractiveness.

Smart card-based E-payment systems are receiving increasing attention as the number of implementations is witnessed on the rise globally. Understanding of user adoption behavior of E-payment systems that employ smart card technology becomes a research area that is of particular value and interest to both IS researchers and professionals. However, research interest focuses mostly on why a smart card-based E-payment system results in a failure or how the system could have grown into a success. This signals the fact that researchers have not had much opportunity to critically review a smart card-based E-payment system that has gained wide support and overcome the hurdle of critical mass adoption. The Octopus in Hong Kong has provided a rare opportunity for investigating smart card-based E-payment system because of its unprecedented success. This research seeks to thoroughly analyze the Octopus from technology adoption behavior perspectives.

Cultural impacts on adoption behavior are one of the key areas that this research posits to investigate. Since the present research is conducted in Hong Kong where a majority of population is Chinese ethnicity and yet is westernized in a number of aspects, assuming that users in Hong Kong are characterized by eastern or western culture is less useful. Explicit cultural characteristics at individual level are tapped into here instead of applying generalization of cultural beliefs to users to more accurately reflect cultural bias. In this vein, the technology acceptance model (TAM) is adapted, extended, and tested for its applicability cross-culturally in Hong Kong on the Octopus. Four cultural dimensions developed by Hofstede are included in this study, namely uncertainty avoidance, masculinity, individualism, and Confucian Dynamism (long-term orientation), to explore their influence on usage behavior through the mediation of perceived usefulness.

TAM is also integrated with the innovation diffusion theory (IDT) to borrow two constructs in relation to innovative characteristics, namely relative advantage and compatibility, in order to enhance the explanatory power of the proposed research model. Besides, the normative accountability of the research model is strengthened by embracing two social influences, namely subjective norm and image. As the last antecedent to perceived usefulness, prior experience serves to bring in the time variation factor to allow level of prior experience to exert both direct and moderating effects on perceived usefulness.

The resulting research model is analyzed by partial least squares (PLS)-based Structural Equation Modeling (SEM) approach. The research findings reveal that all cultural dimensions demonstrate direct effect on perceived usefulness though the influence of uncertainty avoidance is found marginally significant. Other constructs on innovative characteristics and social influences are validated to be significant as hypothesized. Prior experience does indeed significantly moderate the two influences that perceived usefulness receives from relative advantage and compatibility, respectively. The research model has demonstrated convincing explanatory power and so may be employed for further studies in other contexts. In particular, cultural effects play a key role in contributing to the uniqueness of the model, enabling it to be an effective tool to help critically understand increasingly internationalized IS system development and implementation efforts. This research also suggests several practical implications in view of the findings that could better inform managerial decisions for designing, implementing, or promoting smart card-based E-payment system.

Purpose – The purpose of this chapter is to examine the connection between actual variety (the number of stock-keeping units (SKUs)) and amount of useable variety that the consumer perceives. The optimal combination for a retailer is to offer an assortment that maximizes the perceived assortment variety while minimizing the perceived inter-item complexity. Both measures are a function of the actual variety offered in an assortment but other factors such as attribute structure of the individual items, assortment organization, and individual differences can alter the way the actual variety is perceived.Design/methodology/approach – The main methodology used in the chapter is a comprehensive, critical literature review of the empirical research on the topic.Findings – We find that while assortments with a large number of SKUs are desirable for attracting consumers to the category, too large assortments can result in consumer frustration and confusion. On the other hand, when assortments are small, the perceived variety or attention to the category may be limited.Value/originality – Our review shows ways a retailer can adapt to these challenges. First, we show that assortments are viewed in stages. In the first stage, high perceptions of variety are beneficial. When assortments are small, increasing perceived variety can be accomplished by increasing the number of subcategories within the assortment, adding in packaging cues, or using other emotional affective descriptors to further define options within the assortment. In the second or choice stage, too much variety can increase perceived complexity. Perceived complexity at this stage can be reduced by simplifying the complexity of the individual items within the assortment by increasing alignability of attributes, using a simplifying external organizational structure for the assortment, or helping consumers learn their preference.

Chapter 5 changes focus from the external stimulus to the internal sensemaking by integrating and comparing new learning with the prior learning of the individual, which is the process of sensory cognition. These processes are identified and compiled into a model of the processes the brain uses to construct a cognition from the information, including both individual and collective learning. This results in the internalization of a new individual cognition constructed from the integration of the new information with prior information.