Formal and informal channel: consumer choice

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Madeline Melchor Cardona
Universidad Autónoma de Occidente
Colombia
Vol. 01 No. 016 (2016), Articles (open section), pages 5-27
DOI: https://doi.org/10.17979/redma.2016.01.016.4869
Submitted: Dec 4, 2018 Accepted: Dec 4, 2018
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Abstract

Supermarkets and traditional grocery stores have played an important role in food and household merchandise distribution. It is a highly competitive market with different market distribution in Latin America, USA and Europe. In Latin America traditional store has stronger market presence mainly due to cultural factors, however, to enter more deeply to study this situation, we present the results of research conducted in the city of Santiago de Cali in Colombia in order to know the elements that consumer take into account after buying in Supermarkets or traditional stores. A quantitative study with multivariate statistical analysis allowed us to identify and differentiate these elements. Traditional channel is selected by social relationships established, delivery and value added service and availability. While for the formal channel is preferred because of the facilities, variety, economy and comfort.

Keywords:

Consumer selection, formal channel, informal channel, distribution channels

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