Kotler and Keller Essay Example

time. In fact, the 2006 Family Income and Expenditure Survey of the National Statistics Office found that around 61 percent of family expenditures in Metro Manila could be attributed to supermarket purchases across all income classes. However, lower income households may prioritize spending on basic necessities like food. As of 2009, the United States and United Kingdom make up 75 percent of global online grocery retailing volume while its share is just 1.

According to Bharatbook (2010), the global retail grocery market comprises 5 percent. In the Philippines, online grocery retailing is minimal, with few grocery delivery services such as Rustan's Supermarket. Online marketing through social networking sites is restricted to durable goods.

Both tangible goods (such as cars and computers) and lifestyle products (such as cosmetics, clothing, and footwear) can be distributed through non-store channels. One such popular channel is direct selling, as noted by Morales (2010), who states that over 50% of the P35 billion market for personal care, beauty, health, and wellness items is marketed through this method. Direct selling companies include Avon, Natasha, Fuller Life, Boardwork, and others.

According to AC Nielsen's 2005 Retail Audit of over 100 categories, supermarkets accounted for 37% of retail sales with an average of P6.6 billion in monthly sales. The larger supermarkets claimed 41% of total supermarket sales and AC Nielsen found that supermarkets inside malls generated three times more sales compared to those located outside. In contrast, sari-sari stores only contributed around 30% of retail sales despite comprising 90% of all stores. AC Nielsen also noted that most supermarkets are situated in urbanized areas of the Philippines.

Despite Wilson's (2005) assertion that shopping has become

a predominant cultural fixation in America, there are others who disagree. Specifically, Dickinson (2006) and Aylott and Mitchell (1998) contend that grocery shopping in the United Kingdom has transformed into a burdensome and anxiety-inducing task. Due to difficulties associated with retail shopping, Americans have increased their use of alternate methods such as shopping by computer, television, mail, and phone as reported by Morgenson (1993). Family time has been impacted by a series of economic and demographic changes including decreases in real wages, increased working hours, and more women working outside the home. As suggested by Fram and Axelrod (1990), customers are seeking ways to decrease the amount of time spent shopping.

According to Dickinson (2006), grocery shopping in the United Kingdom has led to increasing dissatisfaction among customers who have become impatient shoppers. Similar problems have been noted in the United States and United Kingdom (Dickinson, 2006; Aylott & Mitchell, 1998), while there is little literature available from developing countries (Yavas, Kaynak & Borak, 1981; Gutierrez, 2004). This study aims to address these issues through a descriptive approach, by answering three research questions.

The study identifies reasons for supermarket patronage and common shopping problems faced by Filipino shoppers, and considers whether similar problems affect shoppers in Western countries. The findings suggest that knowledge of these issues could help Filipino retailers improve the customer experience, increase retail patronage, and ultimately boost sales and profitability. Furthermore, the supermarket and grocery stores industry represents the largest food retail channel in the US, with establishments primarily offering a range of food products such as fresh and prepared meats, poultry and seafood, frozen foods, fresh fruits and vegetables, and various dairy

products.