What Matters to Customers How Hardware Stores Keep Customers Happy

A 2006 Market Study

Published by

Russell R. Mueller Retail Hardware Research Foundation 5822 West 74th Street Indianapolis, Indiana 46278 Phone: (317) 290-0338 Fax: (317) 328-4354

Research conducted by Reginald A. Litz, Ph.D Litz Consulting Services Incorporated Winnipeg, Manitoba

Edited by Ellen E. Hackney 2006 4 PREFACE Board of Directors 2006 Russell R. Mueller President Retail Hardware Research Foundation Thomas M. Green Sr. Mayer Hardware The Russell R. Mueller Retail Rochester, New York Hardware Research Foundation was established in 1968 as a living memori- Directors Walter S. Toole al to Russell R. Mueller, managing Bray Ace Hardware director of the North American Retail Winter Garden, Florida Hardware Association from 1952 through 1967. He devoted his career Myron Boswell Russell R. Mueller Retail Hardware Research Foundation to improving the business climate for Orgill Incorporated family-owned retail hardware stores. Memphis, Tennessee The purpose of the Foundation is William Hudson to conduct research and educational activities designed to H.D. Hudson Manufacturing Company improve the retail hardware industry. These activities fulfill a Chicago, Illinois basic need, are of industry-wide interest and application, retain their value over a period of years and perpetuate the John Haka causes for which Russ Mueller worked. All information Midwest Hardware Association developed by the Foundation is made available throughout Stevens Point, Wisconsin the industry. Mac Hardin Funded by an initial grant of $50,000 from the Board of Minnesota-Dakotas Retail Hardware Directors of the North American Retail Hardware Association Association, the Mueller Foundation is organized as a non- Hopkins, Minnesota profit business league. Research and educational projects are funded by voluntary contributions from individuals, compa- Executive Vice President nies and organizations at all levels of distribution throughout John P. Hammond the hardware industry. North American Retail Hardware Association Indianapolis, Indiana The Board of Directors of the Mueller Foundation con- sists of representatives of the major segments of hardware Secretary/Treasurer distribution, including retailing, wholesaling and manufactur- Thomas W. Smith ing. All Board members serve without compensation, assur- North American Retail Hardware Association ing that 100 percent of the Foundation’s income is available Indianapolis, Indiana to finance research and education projects.

Acknowledgements Sponsors The Russell R. Mueller Retail Hardware Research Foundation • Distribution America, Charlotte, North Carolina wishes to thank the sponsors of the 2006 market study, What • Do it Best Corporation, Fort Wayne, Indiana Matters to Customers, for their financial support, the nearly 60 • Hyde Tools Incorporated, Southbridge, Massachusetts hardware retailers who distributed questionnaires to customers, • Orgill Incorporated, Memphis, Tennessee the more than 900 consumers who responded to the study and • Robert Bosch Tool Corporation/Accessories Division, Mt. several individuals whose talents and hard work made the study Prospect, Illinois and this report possible. Their support is truly appreciated. • True Value Company, Chicago, Illinois

John P. Hammond Individuals Executive Vice President Dan Akers Russell R. Mueller Retail Hardware Research Foundation Nancy Vondersaar Chris Jensen Jesse Carleton Betty Brandon North American Retail Hardware Association 2006

CONTENTS 5 What Matters to Customers to Matters What

Executive Summary 6 Overview 7 Profile of Customer Respondents 9 What Retailers Can Do 9 Methodology 10 Study Results 11 Exceeding Expectations 11 Expressing Opinions 13 Building Relationships 14 Making Shopping Choices 15

High-Performance Difference 18

Appendix 23 Customer Segment Data By Gender 23 By Age and Gender 26 By Type of Customer 32

© 2006 by the Russell R. Mueller Retail Hardware Research Foundation. All rights reserved. Except as permitted under the United States Copyright Act of 1976, no part of this publication may be reproduced or distributed in any form or by any means or stored in a database or retrieval system without prior written permission of the pub- lisher. Printed in the United States of America. Single copy price: $50 for hardware/home improvement industry; $100 for non-hardware/home improvement industry. Multiple copy pricing available upon request. 2006 6 EXECUTIVE SUMMARY

What Matters to Customers is a market study that measures the success of family-owned retail hardware stores in meeting customer expectations. It defines those expectations and pinpoints the reasons customers choose hardware stores in preference to big-box home improvement centers.

More than 900 hardware store cus- the only drawing cards for big-box store to friends and family and would Russell R. Mueller Retail Hardware Research Foundation tomers in 58 major metro, suburban and home improvement centers. Service, return themselves. They said it would be small town markets in 11 states com- convenience and, most importantly, very difficult to find another store that pleted detailed questionnaires designed knowledgeable, pleasant and respectful would meet their needs as well as the to answer three critical questions: employees are hardware store advan- hardware store. What do customers want from tages — by far! When it comes to prod- Nearly three-fourths of respon- their neighborhood hardware ucts, customers go to big-boxes for dents were men. The 46-65 year age stores? Getting expert help is most impor- home improvement items such as lum- group represented half the respon- tant while home delivery is least important. ber and building materials, which hard- dents with just 1.5 percent in the 24 Women have higher expectations than do ware stores are less likely to sell. years and younger group — a matter men in all areas of shopping. And, as cus- Customers prefer hardware stores for of potential concern for hardware tomers age, they put more value in getting core home repair items — plumbing, stores. Half the respondents described expert help, especially when it involves electrical, hardware and tools — and themselves as light do-it-yourselfers, installing a product at home. Although all for niche departments such as house- while 23 percent said they were pro- types of customers want help solving prob- wares and automotives. fessionals. They live close to the hard- lems, this kind of assistance is of greatest In an attempt to see what high-per- ware store and have been shopping at importance to light do-it-yourselfers. formance hardware stores may do dif- their local hardware store for more Are customers getting what they ferently or better, the study isolated than 15 years. They said they visit the want? The stores in this study exceeded those retailers who reported sales per hardware store nearly three times as their customers’ expectations. Customer square foot of $175 or more and net often as they shop at a big-box. ratings of hardware store performance on profit before taxes of 7.4 percent or The study was commissioned by the the factors related to shopping satisfaction higher and segmented responses of Russell R. Mueller Retail Hardware were higher than ratings on importance on their customers. Research Foundation and was conduct- all factors. When asked what the stores In general, it is a matter of doing all ed between November 2005 and April could do better, most could find nothing to of the important things just a little bit 2006 by Reginald A. Litz, Ph.D, Litz suggest. Where they did comment, they better. The high-performance stores had Consulting Services Incorporated, focused on training, saying that in some higher customer satisfaction ratings on Winnipeg, Manitoba. Major funding cases salespeople did not understand basic all shopping factors related to solving came from six industry sponsors — repair problems and how to solve them. problems and providing expert help. Distribution America, Do it Best How do expectations differ To summarize, customers like hard- Corporation, Hyde Tools Incorporated, between hardware stores and big- ware stores. Study respondents gave Orgill Incorporated, Robert Bosch Tool box home improvement centers? their hardware stores a strong vote of Corporation/Accessories Division and Lower prices and wider selection are confidence, saying they would refer the True Value Company. 2006 7 What Matters to Customers was What Matters to Customers In an effort to find out whether To get answers to those questions, Customers also had the opportunity to In addition to looking at responses of designed to answer three questions: customer satisfaction correlates with questionnaires asked customers to rate five sets of statements relating to shopping expectations and experiences. These were shopping satisfaction factors, hardware store performance on the satisfaction factors, opinions of hardware stores, relationships with hardware store personnel and shopping preference decisions. write in comments about likes and dislikes. the full panel of customers, the study segmented their answers by by gender gender, and four age groups and by three types of The four customer. age groups were 24 years 25 and to younger, 45 years old, 46 to 65 years old and 66 years The and older. customer groups were light do-it-yourselfers, serious do-it-yourselfers and professional tradesmen and contractors. How do customer expectations differ between hardware stores and big- box home improvement centers? What are customers looking for when they go shopping at their local hardware store? Are customers getting what they are looking for? , detailed – hardware study formed What Matters to Customers Nearly 60 retailer participants in the Now we know. Now The we Foundation’s know. Offer Offer special services Winning Retail Strategies shopping decisions accordingly. Winning Retail Strategies the basis for the They current study. handed detailed questionnaires to 100 of their customers. More than 900 customers mailed their questionnaires to Mueller Foundation offices, producing a response rate of about 15 percent. finds that hardware store owners do, indeed, know what their customers want. Through skillful marketing, they tell their customers what they can expect when shopping in their stores and then deliver on their promises. The customers themselves understand very clearly the difference between hardware stores and big- box home improvement centers and make their neighborhood hardware stores giving them what they wanted? newest study, stores indicated that they concentrated on services that related directly to the products they sold and that could be handled quickly on the salesfloor. what retailers thought their customers wanted and how they went about providing it. The Mueller Foundation wanted to go one step further and ask the customers themselves what they expected when they went shopping in hardware stores. And, even more to the point, were complement rather than compete with big-box product mix. – – the – hardware –hardware store –hardware OVERVIEW Winning Retail . The five strategies were:

Build customer relationships That study defined five strategies Two years ago, the Russell R. Mueller Adapt product mix Compete aggressively Train employees which were published in the Mueller Foundation report, Strategies and small town markets throughout the United States shared their actions in deal- ing with big-box competitors. stores use to compete with big-box home improvement centers. Nearly 350 hardware retailers in major metro, suburban Retail Hardware Research Foundation conducted an in-depth study to define the strategies that family-owned hardware

How Hardware Stores Keep Customers Happy What Matters to Customers stores said they tried to stock items that box competitors and differentiating themselves from these stores. responding hardware stores were aggres- sive in learning all they could about big- were informal. The study pointed to a need for strong and continuing employee education and training. owners understood the need for employees to be able to solve customers’ problems and assure that they buy the right products, but most training programs ed customers’ needs the better they could compete with big-boxes. the battle for consumer dollars. The more accessible hardware stores were to customers and the better they accommodat- personal as well as business relationships turned out to be the greatest strength in 8 Russell R. Mueller Retail Hardware Research Foundation 2006 their needs as well. as needs their serve would that store another find easily not could they say ty.they And communi- local the of part important an are owners family their and companies the because and personality unique a them give owners their because them support will they but more, bit a pay may they that acknowledge They stores. hardware neighborhood well. performed delivery,stores home hardware as such important, less deemed were that factors on Even ratings. importance exceeding ratings performance with well formed per- stores hardware and customers to important most the were factors These home. get they when do to what know to products, right the buy to problems, solve to help expert on squarely center stores family.and friends to store the recommend will They trips. ping shop- frequent make to continue to plan frequently.there They shop They stores. hardware their like Customers tive. stores. other than better or differently do stores forming top-per- what indicate segmentation this of results The customers. their of responses segmented and better or percent 7.4 of taxes before profit net and more or $175 of foot square per sales reported who retailers the profitability,isolated high researchers Customers do not want to lose their lose to want not do Customers hardware like they why reasons The posi- generally are findings Overall change their ways. Although customers Although ways. their change big-boxes the if point weak a become now.from years 10 ness busi- their assure to steps take to soon too not is it and shoppers of eration gen- next the are they because group age concern. for matter a is this stores, hardware of the Although groups. age older are than shopping big-box to oriented strongly more is group age this that hints are there products, improvement home for need less have they where apartment an in or parents with live to tendency a respondents. customer the of percent 1.5 only for accounted — younger and 24s the — group age youngest The nals. selection. and price on win big-boxes ships; relation- personal and knowledge ience, conven- service, on win stores hardware materials. building and lumber as such products and projects major or items big-ticket on especially prices lower — stores hardware at get cannot they what ill-informed. and find to hard are employees want, they what find to long too takes it big, too are stores The experience. pleasant particularly a not is it suggest answers their of many Customers do shop at big-boxes but big-boxes at shop do Customers Although this could be attributed to attributed be could this Although — clear are strengths competitive The for big-boxes at shop Customers Training is critical and could and critical is Training this to sensitive be to need Retailers youngsters have a positive view positive a have youngsters Still, there are a few warning sig- warning few a are there Still, home repair and improvement projects. improvement and repair home of outs and ins the completely stand under- who employees having to related better,answers do many could stores hardware what asked When activities. training their sharpen to need stores hardware that suggest also they areas, critical all in help expert providing for marks high stores hardware give Division and Trueand ValueDivision Company. ToolAccessories Bosch Corporation/ Robert Incorporated, Orgill Incorporated, ToolsHyde Corporation, Best it Do America, Distribution – sponsors industry six from came funding Major Manitoba. Winnipeg,Incorporated, Services Consulting Litz Ph.D, Litz, A. Reginald by ducted findings. significant highlight and study the to responses customer expectations. of list the on lower be may but appreciated are that services and support the provide to continuing while advantage clear a have they where help, expert as such areas, those on attention Focus two-fold: is stores hardware for sage mes- The important. less are that those as well as customers to importance nificant sig- of are that areas in well perform They study’sthe respondents. with advantage projects. of completion and ucts prod- of use hands-on include to needs training the And part-timers. including employees, all for training ongoing and What Matters to Customers to Matters What follow,detail that we pages the In competitive the have stores Hardware formal for need the to points This was con- was 2006 9 What Matters to Customers and encourage employees need a lot of help and which ones would rather take care of themselves. Respect customers as people. As one said, don’t laugh when he asks for a “thingamajig.” Support community organizations and events to become personally involved. Create a welcoming environment that makes customers feel they are the most important people on earth. Develop friendships with customers. Know their names, know which ones more. Younger shoppers more. spend Younger less. Serious and professionals DIYers travel further to visit hardware stores but spend more once there — significantly more for professionals. – Women travel further to shop in hard- from big-box home improvement centerDriving time from hardware storefrom big-box home improvement centerYears lived at currentYears shoppedaddress at Yearshardware big-box store home Number visits to hardware store in last 30 improvementdays centerto big-box home improvement center has 11.7 miles been inDollars spent during last visit marketto hardware storeTime spent in hardware 19.3 minutes store 10.7 minutes 7.9 years 7.1 $42.65 16.2 19.4 yearsyears 2.8 17.3 minutes MenWomen24 years and younger25-45 years46-65 years66 years and olderLight do-it-yourselferSerious do-it-yourselferProfessionalDistance from hardware store 1.5% 71.7% 28.3% 20.4% 27.8% 50.2% 51.5% 25.5% 6.3 miles 23.0% Train everyone, including Formal training is a part-timers.must, as is hands-on training. It should be on-going as new products and methods come on the market. between hardware stores and big-boxes. They said they knew what their neighborhood hardware store had to offer and expected to find it there. Hire the right kind of people individuals who like to help people solve their problems, who like to do home improvement projects, who can demon- strate to customers that they understand what they need. differences appeared in age the gender, and type of customer segments. ware stores while men tend to spend a bit . Several Big-boxes What Matters to – or the lack of them. Be , would indicate that family-

What Matters to Customers

Given that they seem to be doing The results of the Mueller The following chart details the charac- Create an image and deliver on it. Customers understand the difference but everyday pricing needs to be in line with — not necessarily lower than — big-box prices. Foundation study understand the value of personal service and expert help. They don’t mind paying a little more, Be sensitive to pricing. will always have a price advantage but the respondents to the Mueller improvement centers. They feel like they get respect from hardware store salespeople. They may be more demanding but they express more positive feelings about hardware stores than about big-box home box stores and may be more susceptible to their low-price strategies. Appreciate women customers. Pay close attention to younger customers aware that they have grown up with big- many things right, what actions seem to be called for by the study findings? home improvement centers. They enjoy a strong franchise with their customers. Foundation study, Foundation study, Customers owned hardware stores are in an envi- able position to compete with big-box study, study, teristics of the more than 900 customers who responded to the Mueller Foundation Profile Profile of Customer Respondents

Can Do What Retailers 10 Russell R. Mueller Retail Hardware Research Foundation 2006 How the Study Was Conducted Was Study the How that time, retailers were asked if they if asked were retailers time, that At centers. improvement home big-box with compete stores these how out find to stores hardware retail family-owned among study a conducted Foundation Winnipeg,Manitoba. Incorporated, Services Consulting Litz Ph.D, Litz, A. Reginald by conducted and Foundation Research Hardware Retail Mueller R. centers? improvement home big-box and stores hardware between differ expectations do How for? looking are they what getting they Are stores? hardware local in shop they when for looking customers are What questions: three answer to designed was It stores. hardware retail family-owned of tomers cus- among year-longconducted study These questionnaires were customized were questionnaires These customers. their of 100 to tionnaires TexasWashington.Carolina, and York,New North Missouri, Minnesota, Kansas, Iowa, Illinois, Georgia, California, states: 11 in markets town small and suburban metro, major 58 in located were retailers ticipating par- The 2006. April and 2005 November study.this in participate to recruited were They interest. expressed half About customers. their of study follow-up a in participating in interested be would Retailers handed out detailed ques- detailed out handed Retailers between conducted was study The Mueller the ago, years Two Russell the by commissioned was It Customers to Matters What METHODOLOGY was a was opinions of their local hardware stores. hardware local their of opinions customers’ reflect that factors six of factors. 11 the of each on formed per- stores hardware the well how with store owners and personnel. and owners store with developed have customers tionships rela- personal and business of kind the store shopping satisfaction in hardware stores. hardware in satisfaction shopping to contribute that factors 11 of importance store. the in time of length and spent amount trips, shopping of frequency home, current in time of length stores, activity,from do-it-yourself distance of customers: from information of types ing percent. 15 about was rate response the Overall, store. per questionnaires more or 50 to store per questionnaires two or them. requested who respondents to mailed were coupons 700 Nearly questionnaire. the complete to incentive an as store participating the at purchase next their toward coupon $5 a offered were Customers offices. Foundation Mueller to them mailing and naires question- the completing by responded customers 900 Nearly shop. they where store hardware specific a evaluating were customers that so store, each for Opinions of hardware stores hardware of Opinions Relationships with staff at hardware at staff with Relationships Hardware store performance store Hardware expectations Shopping Characteristics follow- the requested questionnaire The one from varied rate response The – rating of 10 factors that describe that factors 10 of rating – – age, gender,age, level – – rating the rating – – rating – – rating – ing and five being the highest. Ratings highest. the being five and ing rat- lowest the being one with five to one experiences. and expectations shopping about comments in write to categories. merchandise major in products purchase to likely most were they where as well as center improvement home big-box a or store hardware the at shop would customers why describing factors annual Association’sHardware Retail American North the in stores high-profit the of those parallel measurements profitability These customers. their of responses ed segment- and better or percent 7.4 of taxes before profit net and more or $175 of foot square per sales reported who retailers the profitability,isolated researchers high with correlates satisfaction tomer contractors). and (tradesmen professionals and projects) improvement home major (do do-it-yourselfers ous seri- projects), maintenance home routine (do do-it-yourselfers light were groups older.customer and The years 66 and old years 65 to 46 old, years 45 younger,to 25 groups. type customer three and groups age four customer.were of There type by and gender and gender,age by by segmented also were ratings factor; each on rating single a derive to averaged were Each factor was rated on a scale of scale a on rated was factor Each opportunity the had also Customers preference Shopping In an effort to find out whether cus- whether out find to effort an In and years 24 were groups age The Cost of Doing Business Study. Business Doing of Cost – rating of eight of rating – STUDY RESULTS 2006 11 What Matters to Customers to Matters What Exceeding Expectations

Customers go to hardware stores to importance ratings ranged from a high instance, women gave hardware stores get help. And hardware stores give of 4.21 out of 5 for solving problems to higher performance ratings than did men. them that help. That is, clearly, the top 1.85 for home delivery, none of the per- Age seems to make less difference finding in the new study, What Matters formance ratings fell below 4.0. than gender in what is important in to Customers. In conjunction with the ratings, cus- hardware store shopping. Younger men Most important is help in solving tomers were asked what hardware show a slight preference for in-store problems, closely followed by help in stores could do better. More than half services such as paint mixing and understanding what products to buy (57.3 percent) of the answers were of repairs, as do younger women. and how to use them at home. the “doing fine now” nature. Of those When it comes to meeting expecta- To find out what customers think is who cited room for improvement, a tions, men in the youngest age group are important and whether hardware stores large number focused on employee more critical. They tended to give hard- satisfy customer needs, the Russell R. training while other suggestions had to ware stores slightly lower performance Mueller Retail Hardware Research do with respect for customers’ time. ratings than did the older groups. Results Foundation analyzed responses from were mixed for women, with lower rat- more than 900 customers of family- Results for Customer Segments ings coming from the 24 and younger and owned hardware stores. These cus- The study segmented customer 46 to 65 age groups. tomers were given a list of 11 factors responses by gender, by gender and age It should be no surprise that light do- that relate to shopping satisfaction in and by type of customer. Respondents were it-yourselfers attach more importance to hardware stores. They were asked to sorted into four age groups and three cus- all shopping satisfaction factors than do rate each factor on a five-point scale as tomer types. The age groups were 24 years serious do-it-yourselfers and profession- to how important it was in their shop- and younger, 25 to 45 years old, 46 to 65 als. The significant finding is that all ping decisions. Then they were asked to years old and 66 years and older. The cus- three types of customers place high grade the hardware stores’ performance tomer types were light do-it-yourselfers, value on help solving problems. Serious on the same factors. The accompanying serious do-it-yourselfers and professionals. do-it-yourselfers and professionals tend chart shows clearly what customers Although both men and women value to put less emphasis on more technical expect when they shop at hardware the same things — expert help from aspects such as what products are need- stores and that the stores are exceeding salespeople — women are more demand- ed and how to use them. those expectations. ing. They place a higher importance on Hardware stores rate high in per- Convenience and service are impor- most of the shopping satisfaction factors. formance with all types of customers, tant but do not rank as high as problem- For example, women said in-store with professionals being most satisfied solving. Service factors such as mixing services such as paint mixing and repair on convenience factors such as expedit- paint, making repairs, renting equip- were more important than did men. ing the purchasing process. ment and home installation received Women also place greater importance It should be noted that in all segments, lower importance ratings as did conven- on product installation at home, help differences were slight, but enough to sug- ience factors such as completing the loading purchases into their vehicles gest that hardware stores should not let up transaction quickly. At the same time, and home delivery. on efforts to satisfy all customers. customers gave hardware stores high Women were also happier with how Data on customer segments appears marks on all 11 factors. Although hardware stores treat them. In every in the Appendix, beginning on page 23. 12 Russell R. Mueller Retail Hardware Research Foundation 2006 HARDWARE STORES EXCEED CUSTOMER EXPECTATIONSCUSTOMER EXCEED STORES HARDWARE DO WELL DO WHATHARDWARE STORES Comments Customer fe etlsrie .84.07 4.11 2.28 4.25 4.09 1.85 4.40 4.37 4.16 2.80 excellent. to poor from range 2.55 which ratings, the in included ans apply not Did excellent. meaning five and apply not did meaning one with scale five-point a on based are Averageratings ** 3.69 4.27 2.86 important. extremely meaning five and important not meaning one with scale five-point a on based are Averageratings * 3.35 4.20 customer’shome to purchases Deliver 4.38 4.30 services rental Offer store the at purchased product a installing e.g.: home; at assistance Provide vehicles into purchases load to Help 3.72 store the entering when greeting Personal 3.74 items broken 4.21 repair to services Provide 3.93 quickly purchases complete Help paint mix e.g.: home; at use for ready products Get home at products install or use to how understanding in help expert Provide needed are products what exactly understanding in help expert Provide problems solving in help expert Provide factors satisfaction Shopping service.” good get we that ed interest- sincerely are they like seem it make certainly and family like us treat “Employees names.” first our using us greet they nice; so all are “They without.” do to want don’t I town in business one the is It helpful. very is staff whole “The priority.”one number the person that servicing make and assistance offer immediately help sales store, the in comes customer a importantly,when “Most convenience.” and It’stime minutes. 10 in home back I’m and it grab need, I what know “I info.” product about knowledgeable and courteous professional, very were “They young kids.” young hired and go them let they but salespeople experienced had They work. things how ing know- in experience with people more “Hire more“Be keys.” make screens, replace i.e.: store; the in jobs all do to trained cross better “Be BETTER DO COULD WHATHARDWARE STORES Everyone was friendly and courteous.” and friendly was Everyone day.same the up it picked I me. for it held they stock; in was item an if see to called “I it.” replace to how and use can we something is it if us tells it, locates staff the need, we part the small how matter No phone. the over us helped has staff “The knowledgeable about ai repair.” basic Customers* Performance** Performance** Store Hardware Customers* to Importance plish and suggest alternative.” suggest and plish accom- to trying are you what just to “Listen buy.”to ready customer a are you that store, the in are you “Acknowledge questions.” right the ask and listen still but quickly me help to urgency of sense a have relaxed; less “Be fixer-uppers.” for knowledge in-depth have they that sense a get not do I helpful. and courteous been always have salespeople “The the correct SKU.” correct the find cannot who clerks and items marked mis- or unmarked from Delays up. back lines when areas other from pulled cashiers additional with responsive more “Be Average Ratings Average wers were not were wers 2006 What Matters to Customers 13 swers were Average Ratings One of those signals shows up in these Differences among the three types of Data on customer segments appears One of the troubling findings in this ratings — not surprisingly, it’s price. ratings Men — it’s not surprisingly, in the youngest age group gave hardware stores the lowest rating on price, suggest- ing that they could be more susceptible to the low-price strategies of big-box home attitudes improvement centers. Women’s toward price are different where the 25 to 45 year olds were most critical. customers — light do-it-yourselfers, serious do-it yourselfers and professionals — were negligible and tracked closely the opinions of the full panel of respondents. in the Appendix, beginning on page 23. not by much. Even when it comes to finding the best prices, women have a more favorable opinion of hardware stores. study was the very low number of customers in the youngest age group — 24 years Although and they younger. may not own homes yet and have less need for the products sold in hardware stores, there are a few signals that hardware retailers would do well to heed. The accompanying chart details the Women have more positive opinions Other opinions reflect customers’ They have also solidified their reputa- my money local.” ratings on six statements that reveal customers’ opinions about their neighborhood hardware stores. It is significant that all of the ratings, except that for best prices, are very close together and, as a group, very strong. Results by Customer Segment about hardware stores than do men, but they could rely on the hardware store to have merchandise in stock. That may be, in part, because employees can find a work- able substitute if the store doesn’t have an item the customer specifically requests. That traces directly to customers’ reliance on salespeople to answer their questions. loyalty to their communities. They shop at hardware stores because they want to support their local business commu- As one nity. customer commented, “I’m willing to pay a little bit more to keep problems. Customers were solid in their intention to go there first in the future. tion for being in-stock. Customers said What , conducted by the

Hardware stores seem to be strength- In fact, of all the statements that One very telling indication of what Customers’ opinions about retail stores Average ratings are based on anot included in five-pointthe ratings, which range from highly unlikely to highly likely. scale with one meaning did not apply and five meaning highly likely. Did not apply an how to answer questions Go to the hardware store to get the best prices 3.91 Rely on the hardware store to have products in stock that they needRely on the hardware salespeople store’s to have the know- 4.67 4.58 Refer the hardware store to friends or family Go to the hardware store as a way of supporting the local business communityGo to the hardware store first to solve a problem in the future 4.73 4.71 4.79 How likely customers are to … CUSTOMERS’ OPINIONS OF HARDWARE STORES ing their high-price image. ening their position as the store of first choice, especially when it comes to solving should give hardware stores some degree of satisfaction. They would appear to be making progress in mitigat- stores, only one — getting the best prices — rated below 4.0 and that was a very respectable 3.91. That vote alone ing in a the 4.79 study, out of 5. reflect attitudes toward hardware no doubt they will. When asked to rate on a five-point scale how likely they are to refer the neighborhood hardware store, customers gave it the highest overall rat- customers think is whether they would refer a store to friends There’s and family. customer expectations and satisfaction to find out what shoppers think about family- owned hardware stores. Matters to Customers Russell R. Mueller Retail Hardware Research Foundation, went deeper than often drive actions that reach beyond their own shopping decisions. The study, Expressing Expressing Opinions 14 Russell R. Mueller Retail Hardware Research Foundation 2006 Building Relationships Building to lose their hardware stores. hardware their lose to want not do They business. in not were store hardware the if well as needs their meet to store another find easily could They one: this was disagreement so. doing continue to intend and trips frequent make They days. 30 past the in times eight or seven of average an store hardware their at shopped they said Customers finding: another by out borne is It days. 30 next the in once least at store ware hard- neighborhood the visit to tion inten- customers’ involved agreement stores. hardware for endorsements strong were both and — agreement of levels lowest the and highest the — (five). agree strongly to (one) disagree strongly from ing rang- scale point five a used They store. hardware local their with was bond the strong how reveal to designed ments state- 10 with agreement of level their back. coming customers keep that ships relation- developing of job solid a done have shop respondents study the where stores. hardware with have they relationships business and personal the describe to customers asking by Customers to Matters What relationships. customer building was strategy one number The centers. improvement home big-box with compete they how detailed stores hardware owned Strategies study,a published Foundation Research Hardware Retail The statement with the strongest the with statement The strongest the with statement The findings significant two were There indicate to asked were Customers stores hardware the seem would It study,Foundation Mueller 2006 The Mueller R. Russell the ago years Two , in which owners of family- of owners which in , Winning Retail Winning , followed up followed , younger women gave much the same the much gave women younger However,men. younger and old year 24 to important as not is employees its and store the by involvement Community groups. older as values same the quite have not may customers younger that hints more few a reveals replacement. a find to harder be would it said gency.women Still, after-hoursan emer- in help for asking about comfortable feeling and friends them considering name, by people sales- knowing in come differences The important. are community and family to that and stores hardware continuing their at shop about strongly feel Women do. men as stores hardware in fortable com- as quite feel not may women that Segments Customer for Results advantage. competitive key a is involvement and nity.ownership Local commu- the building in involved is store hardware the that and community local the to important is store the at everyone that appealing, store the makes what of part important an are owners family in the Appendix, beginning on page 23. page on beginning Appendix, the in major.not are ment seg- each within and among ferences after-hoursfor assistance. call to tant hesi- less are and problems special with help received have They friends. ple salespeo- consider they and them know salespeople the name, by salespeople know They do-it-yourselfers. the than relationships stronger developed have groups. older the as responses Looking at differences by age by differences at Looking results the in hints few a are There that agreed strongly also Customers Data on customer segments appears segments customer on Data dif- the that note to important is It to seem customers Professional evident throughout the organization.” the throughout evident are family.values great Their a are owners The innovative. and fair,friendly are “They us.” know they and name by everyone know “I dad.” your asking It’slike offered. tance assis- and knowledge and inventory “The BEST WHATLIKE CUSTOMERS Comments Customer did need.” did but for shopping even wasn’t I something there, extra something find always “I window.”the fix to thingamajig a need I say I when laugh don’t “They retail.” in Veryunusual first. comes customer the — preach they what practice “They problem.” my fix to how me to explained and me helped they — floors redoing painting, walls, fixing was it whether — into got I ect proj- each for and house a remodeled “I full.” box whole a screw,not one just buy can you and everything have “They today.”stores most in find to That’shard you. help to happy are and doing they’re what know they where store a to go to “It’snice community.”the to committed is owner The store. the at gather and meet People community.the of center the is store “The support.” to ue contin- will we that community the of part important it’san and things different of friendly,selection close, have store, “Nice 2006 What Matters to Customers 15 Average Ratings Something of a dichotomy appears There’s little difference There’s in shopping Age is a The different youngest matter. tools are the only departments where they expressed a preference for hardware stores. in the data on reasons for making shopping choices. The youngest shoppers indicate as strong a preference for hardware stores as do the older groups for Results by Customer Segment choices between men and women when product selection is involved. Their preferences track those of the full panel of respondents. The same is true for the reasons for making shopping choices — hardware stores are pre- ferred for service and convenience, big- boxes for price. age group — men and women 24 and younger — tend to prefer big-boxes for more product categories. Hardware and Customers expressed strong prefer- Hardware stores are by far the pre- that favored big-boxes was price. choosing where to shop and asked customers how likely they were to go to a hardware store or big-box. They were asked to indicate their preference on a five-point scale with one meaning more likely to go to a big-box and five meaning more likely to go to the hardware store. ence — a rating higher than 4.0 — for hardware stores on six of the eight reasons, all relating to expert help, quality merchandise and the convenience of making a quick trip. The only reason materials, flooring and wallcoverings, all products that hardware stores are less likely to stock in any almost depth. a It’s draw for paint and seasonal merchandise. ferred choice for service and convenience. The study listed eight reasons for , put that criti-

Hardware stores are the clear choice Where are they most likely to go for What products are they most likely The new Russell R. Mueller Retail It’s all very It’s interesting to know what Average ratings are based on a five-point scale with one meaning strongly disagree and five meaning strongly agree. They feel comfortable calling someone from the store with an after-hours emergencyThey could easily find another store to meet their needs as well if the hardware store were not in business 3.20 2.57 At least one salesperson knows them by nameThey consider at least one salesperson a friend 3.91 3.81 The people at the hardware store have offered “above and beyond” service such as ordering special merchandise 4.12 The people at the hardware store are an important part of the communityThe hardware store is involved in helping build the communityThey know at least one salesperson by name 4.42 4.30 4.12 They expect to visit their neighborhood hardware store at least once in the next 30 daysPart of what makes the hardware store is the family that owns and operates it 4.71 4.43 The extent to which customers agree that... RELATIONSHIPS RELATIONSHIPS WITH CUSTOMERS box home improvement centers are pre- ferred for products related to big-ticket improvement projects building — lumber, products — plumbing, electrical, hardware and tools — and for niche departments such as housewares and automotives. Big- service, convenience, selection and price? for core home maintenance and repair to buy at hardware stores? At big-box home improvement centers? What Matters to Customers cal question to hardware store shoppers. owned hardware stores. But do those feelings translate into shopping decisions? Hardware Research Foundation study, customers say they think about family- Making Shopping Choices 16 Russell R. Mueller Retail Hardware Research Foundation 2006 favorable impression of big-boxes. of impression favorable more a have shoppers younger that indication another is it but significant, prices. on boxes big- for preference stronger slightly a show but convenience and service Customer Comments Customer variety of products is greater.”is products of variety the Also involved. is money significant and substantial is differential price the “When variety.”more stuff, bigger in price better “A stock.” doesn’t store hardware the items large carry “They BIG-BOXES ATSHOP CUSTOMERS WHY want and help.” and want the And you what for looking around dering money. any wan- time waste you big; too is big-box saving not are You etc. lights, Christmas paint, of can a for big-box a to drive to stupid is it think I stall. shower bathtub, i.e.: project; major a for items large need would I when big-box a at shop only would “I first.” store hardware local nearest the shop I’ll site job a On … it. hate I sites. job varied to home my from route traveled regularly a on is it “Because folks.” little not contractors, prefer to Seem help. get can’t“We salespeople, Rude don’t. knowledge.” limited with salesperson a on rely to have don’t and need I what exactly know I “Because Much the same is true when cus- when true is same the Much not is big-boxes for preference The show a stronger preference for hardware for preference stronger a show do-it-yourselfers light convenience, and panel. full the of preferences closely follow categories merchandise major for shop to where of choices their professional, or do-it-yourselfer Whether activity.of type by segmented are tomers “The personal service; I like to support to like I service; personal “The items.” larger the for geared is big-box the while items, smaller for perfect is store hardware “The big-box.” the at “Cheaper need.” not do you extras the all not – need you what just buy you and “Service sale.” another just not person, real a like me treats store hardware “The BIG-BOXES AND STORES HARDWAREBETWEEN ENCES IMPORTANTMOST DIFFER- treated with respect.” with treated been always have I store hardware the at But women. to down talking are they feel often I and car the to anything carry to offer not do They items. heavy with helpful not are They them. find to miles walk to have you and find to hard usually is staff Big-box service. customer “Excellent warehouses.” only have we’ll Else there. stay they’ll so community my in stores later on Sunday.”on later open are stores big-box the and house our on “Weworkers weekend are When it comes to reasons of service of reasons to comes it When in the Appendix, beginning on page 23. page on beginning Appendix, the in salespeople. store hardware from get they help the appreciate they sure, For big-boxes. by intimidated feel may and professionals and do-it-yourselfers ous seri- are as skills own their of confident as not are they because perhaps stores, size. As a senior citizen, I prefer a prefer I citizen, senior a As size. store and location of “Convenience order off their catalog.” their off order special will they need, I what have don’t they If store. to store from going hours spend Youto store]. have ware don’t hard- the [at need you what find to easy extremely economy.is our It to hurtful is mentality better is bigger The in. believe I America the nurture not do stores box The them. need I as much as me need they know I because myself like people the support I myself. entity ness busi- proprietorship sole small a am “I quality,better too.” of are products their of most like feel I stores. big the than lower even are they sale, on are things when and competitive very are store’sprices hardware the feel I help. to ready and close are they problem a have I if and fast store hardware the of out and in get can I “Service. local.” stays money my know to more little a pay rather would I help. knowledgeable less much have stores big-box The store. hardware the at service customer in difference day and night a is “There Wonderful!”help. need I if asked being or clerk a find to ity abil- shopping, of ease for store smaller Data on customer segments appears segments customer on Data 2006 What Matters to Customers 17 ikely to at that type cts purchased. 4.54 Average Ratings Big-Box Home Average Ratings Hardware Stores Improvement Centers Average ratings are based on five-pointof store. Cannot remember answers were not included in the ratings, which range from scaleno products purchased to most or all produ with one meaning cannot remember and five meaning most or all products purchased Paint and decoratingOther (housewares, automotives, sporting goods, etc.) 3.06 2.97 3.02 3.11 Hardware and toolsSeasonal (lawn and garden, Christmas, etc.) 3.09 3.47 3.22 3.18 Plumbing, heating, lighting, electricalBuilding materials, flooring, lumber, wallcovering 2.69 3.59 3.94 3.32 go to hardware store. When they are looking for the lowest pricesAverage ratings are based on a five-point scale with one meaning much more likely to go to big-box and five meaning much more l 2.73 When they want salespeople who can show them how to use the products once they get homeWhen they are looking for the highest quality productsWhen they are looking for specific brand names 4.37 4.07 3.55 When they are in a hurry When they want salespeople to knowledgeably answer questions 4.48 When they want salespeople available to help themWhen they want salespeople to help them find exactly what they need 4.54 4.60 Customers say they shop at hardware stores... Where customers say they are most likely to buy... WHERE CUSTOMERS SHOP WHY CUSTOMERS SHOP AT HARDWARE STORES 18 Russell R. Mueller Retail Hardware Research Foundation 2006 The High-Performance Difference High-Performance The thing better than everybody else. They else. everybody than better thing one any do not do stores formance customers. 900 than more of panel full the of percent 12.5 represented stores Study Business Doing Association’sHardware annual Retail American North the in stores high-profit the of those parallel ments measure- higher.profitability These or percent 7.4 of taxes before profit net and more or $175 of foot square per sales reporting those as defined out. pulled customers their of responses the and isolated were stores performance high- The operations. own their about tion informa- submit to asked were customers their to questionnaires giving by study study, new its in results of breakout special a pulled Foundation Research Hardware Retail Mueller R. Russell the out, find Tostores? hardware other than better or differently do stores hardware formance high-per- do What profitability? high into As is so often the case, high-per- case, the often so is As high-performance the of Customers were stores High-performance the in participated who retailers The translate satisfaction customer Does What Matters to Customers to Matters What . Cost of Cost . ferred place to shop. to place ferred pre- a as store hardware local their replace to difficult more it find would community.importantly,its And, to they store’sthe contribution and ownership family local on value more place stores location. convenient and services in-store position, stock in- salespeople, well-informed through adds store hardware the value the of understanding clear a indicating prices, best the for store hardware the to go would they said they prices, lowest the for center improvement home big-box a to go to likely more be would they said money.they their Although for value them gives store hardware hood neighbor- their think stores formance relationships. business and personal stronger build they and customers their to ties emotional tighter enjoy they better,bit little a expectations customer story.the tell pages following the on carefully.charts more The little a retailing of details the to ter.tend They bet- bit little a just everything almost do Customers of high-performance of Customers high-per- Significantly,of customers exceed stores High-performance tant than did customers of other hard- other of customers did than tant impor- less was transactions speedy of big-box. the as often as twice than more store hardware the visit they Still big-box. the at quently fre- more and store hardware the at frequently less shop to tend stores ance high-perform- of customers stores, ware hard- local their of endorsement strong the big-box. the and store hardware the both to closer live and years more for store hardware neighborhood their at shopped have They size. transaction lower the for account may which professionals, be to likely less and do-it-yourselfers light be to likely more are stores hardware stores. hardware other of customers did than store hardware the to visit last their during less stantially stores. hardware other of customers for is it than home to closer is big-box the that fact the and This often. more big-boxes at shop to tendency their to contribute may which stores, ware They said convenience in the form the in convenience said They unexpectedly,their Somewhat given Customers of high-performance of Customers sub- spending reported also They 2006 What Matters to Customers 19 s were Average Ratings Average Ratings Customers of High-Performance Stores Customers of All Other Stores Customers of High-Performance Stores Customers of All Other Stores Importance of shopping satisfaction factors Hardware stores’ performance on satisfaction factors not included in the ratings, which range from poor to excellent. Deliver purchases to homecustomer’s Average ratings are based on a five-point scale with one meaning did not apply and five meaning excellent. Did not apply answer 2.50 4.00 Provide assistance at home; e.g.: installing a product purchased at the store Offer rental services 3.86 4.11 3.81 4.08 Personal greeting when entering the storeHelp load purchases into vehicles 4.46 4.36 4.20 4.29 Help complete purchases quicklyProvide services to repair broken items 4.47 4.55 4.11 4.34 Provide expert help in understanding how to use or install products at home Get products ready for use at home; e.g.: mix paint 4.55 4.50 4.32 4.11 Provide expert help in understanding exactly what products are needed 4.41 4.25 Provide expert help in solving problems 4.64 4.27 Average ratings are based on a five-point scale with one meaning not important and five meaning extremely important. Offer rental servicesDeliver purchases to homecustomer’s 1.30 2.05 1.94 2.33 Provide assistance at home; e.g.: installing a product purchased at the store 2.38 2.58 Provide services to repair broken items Personal greeting when entering the storeHelp load purchases into vehicles 3.75 3.07 2.73 3.19 2.79 2.83 Get products ready for use at home; e.g.: mix paintHelp complete purchases quickly 3.61 3.73 3.61 3.71 products are needed Provide expert help in understanding how to use or install products at home 3.84 3.69 Provide expert help in solving problemsProvide expert help in understanding exactly what 3.93 4.18 3.90 4.16 CUSTOMER SATISFACTION 20 Russell R. Mueller Retail Hardware Research Foundation 2006 RELATIONSHIPS WITH CUSTOMERS WITH RELATIONSHIPS OPINION CUSTOMERS’ ee h adaesoet red rfml .94.71 4.89 family or friends to store hardware the Refer hycudesl idaohrsoet etternes .22.69 3.82 4.02 3.12 4.23 agree. strongly meaning five and disagree strongly meaning one 4.14 with scale 2.52 five-point a on based are 3.81 4.29 ratings Average 3.95 business in not were store hardware the if well as 3.20 needs their meet to store another find easily could They 4.42 4.25 emergency after-hours an with store the from someone calling comfortable feel They 4.31 4.33 friend a salesperson one least at consider They 4.44 name by them knows salesperson one least At merchandise special ordering as such service beyond” 4.73 and “above offered have store hardware the at people The 4.67 name by salesperson one least at know They community the 4.76 build helping in involved is store hardware The community the of part important an are store hardware the at people The 4.67 3.93 it operates and owns that family the is store hardware the makes what of Part days 30 next the in once least at store hardware the visit to expect They 4.47 4.10 4.62 an apply not Did likely. highly meaning five and 4.71 apply not 4.68 did meaning one with scale likely.highly to unlikely highly from range which ratings, the in five-point included not were a 4.73 on based are ratings Average prices best the get to store hardware the to Go 4.75 questions answer to know-how the have to store’ssalespeople hardware the on Rely 4.83 need they that 4.69 stock in products the have to store hardware the on Rely future the in problem a solve to first store hardware the to Go community business local the supporting of way a as store hardware the to Go The extent to which customers agree that... agree customers which to extent The to... are customers likely How Performance Stores Other Stores Other All of Customers Stores Performance High- of Customers Performance Stores Other Stores Other All of Customers Stores Performance High- of Customers Average Ratings Average Average Ratings Average swers 2006 What Matters to Customers 21 at that type cts purchased. Average Ratings Average Ratings Customers of High-Performance Stores Customers of All Other Stores Customers of High-Performance Stores Customers of All Other Stores hardware stores... How likely customers are to purchase at Average ratings are based on five-pointof store. Cannot remember answers were not included in the ratings, which range from scaleno products purchased to most or all produ with one meaning cannot remember and five meaning most or all products purchased Paint and decoratingOther (housewares, automotives, sporting goods, etc.) 2.88 2.91 3.48 2.94 Hardware and toolsSeasonal (lawn and garden, Christmas, etc.) 3.33 3.17 3.10 3.13 Plumbing, heating, lighting, electricalBuilding materials, flooring, lumber, wallcovering 4.31 3.45 3.94 3.27 Paint and decoratingOther (housewares, automotives, sporting goods, etc.) 3.34 3.16 2.72 3.00 Hardware and toolsSeasonal (lawn and garden, Christmas, etc.) 3.00 3.23 3.05 3.48 Plumbing, heating, lighting, electricalBuilding materials, flooring, lumber, wallcovering 2.64 3.41 2.68 3.62 box home improvement centers... How likely customers are to purchase at big- WHERE CUSTOMERS BUY 22 Russell R. Mueller Retail Hardware Research Foundation 2006 CUSTOMER PROFILE CUSTOMER STORES HARDWARE AT SHOP CUSTOMERS WHY hnte atslsepeaalbet epte .74.50 4.57 them help to available salespeople want they When er sopd t adae tr 46 er 70 years years 17.0 17.3 $51.40 24.1% years 6.5 visits 7.7 years years 24.6 23.5 minutes 10.4 29.3% miles 5.1 46.6% $22.46 13.3% 87.5% years visits 5.0 6.1 minutes 7.5 miles 3.5 26.7% 60.0% store hardware to market visit last during spent Dollars in been has center 12.5% days 30 improvement last in store hardware to visits of Number home store big-box hardware Years at address shopped Years current at lived Years store hardware from time Driving 2.80 store hardware from Distance 4.66 3.62 Professionals do-it-yourselfers Serious 4.39 do-it-yourselfers Light 4.00 respondents of Percent 4.32 2.54 4.15 l 3.31 more much meaning five and big-box to go to likely more much 4.45 meaning one with scale store. five-point hardware to go a 4.48 on based are 3.89 ratings Average 4.36 prices lowest the for looking are they When names brand specific for looking are they When products quality highest the for looking are they When home get they once products the use to 4.61 how them show can who salespeople want they When questions answer knowledgeably can who salespeople want they When hurry a in are they When need they what exactly find them help to salespeople want they When Customers say they shop at hardware stores... hardware at shop they say Customers to big-box home improvement center 2.4 visits 1.4 visits 1.4 visits 2.4 minutes 29.9 miles 24.0 minutes 11.1 center improvement home big-box to miles 4.3 center improvement home big-box from center improvement home big-box from Performance Stores Other Stores Other All of Customers Stores Performance High- of Customers Performance Stores Other Stores Other All of Customers Stores Performance High- of Customers Average Ratings Average ikely to ikely 2006 What Matters to Customers 23 s were not Average Ratings Average Ratings Men Women Men Women three segments. yourselfers (do major home improvement projects) and professionals (tradesmen and contractors) Charts on this and the following pages present statistical data for these each for men and women; the age groups were 24 years and younger, 25 to 45 years old, 46 to 65 years old and 66 years and older selfers (do routine home repair or decorating projects), serious do-it- MEN VS. WOMEN MEN VS. •Customer type – light do-it-your- light – type •Customer : , were APPENDIX What Matters to Customers Results for the Russell R. Mueller Hardware stores’ performance on satisfaction factors Importance of shopping satisfaction factors Average ratings are based on a included in the five-pointratings, which range from poor to excellent. scale with one meaning did not apply and five meaning excellent. Did not apply answer Offer rental servicesDeliver purchases to homecustomer’s 4.08 4.15 4.06 4.20 Help load purchases into vehiclesProvide assistance at home; e.g.: installing a product purchased at the store 4.06 4.22 4.23 4.44 Help complete purchases quicklyProvide services to repair broken items Personal greeting when entering the store 4.20 4.18 4.33 4.44 4.39 4.48 Provide expert help in understanding how to use or install products at homeGet products ready for use at home; e.g.: mix paint 4.18 4.39 4.26 4.48 Provide expert help in solving problemsProvide expert help in understanding exactly what products are needed 4.24 4.41 4.27 4.56 Deliver purchases to homecustomer’s Average ratings are based on a five-point scale with one meaning not important and five meaning extremely important. 1.76 2.05 Provide assistance at home; e.g.: installing a product purchased at the storeOffer rental services 2.42 2.85 2.26 2.34 Personal greeting when entering the storeHelp load purchases into vehicles 2.81 3.02 2.64 3.23 Get products ready for use at home; e.g.: mix paintHelp complete purchases quicklyProvide services to repair broken items 3.62 3.98 3.20 3.70 3.71 3.75 Provide expert help in understanding exactly what products are neededProvide expert help in understanding how to use or install products at home 3.60 3.82 4.13 4.25 Provide expert help in solving problems 4.13 4.42 CUSTOMER SATISFACTION •Age and gender – four age groups age women four – vs. men – gender and •Gender •Age Retail Hardware Research Foundation’s study, broken into three segments: 24 Russell R. Mueller Retail Hardware Research Foundation 2006 RELATIONSHIPS WITH HARDWARE STORES HARDWARE WITH RELATIONSHIPS STORES HARDWARE ABOUT OPINIONS ee h adaesoet red rfml .64.81 4.76 family or friends to store hardware the Refer hycnie tlatoeslsesnafin .73.54 2.97 3.59 2.33 3.87 3.90 3.23 3.99 agree. strongly meaning five and disagree 2.64 strongly 4.17 meaning one with scale five-point a on based are ratings Average 4.06 4.34 business in not were store hardware the if well as needs their meet to store another find easily could They emergency after-hours an with store the from someone calling comfortable feel They 4.12 4.28 friend a salesperson one least at consider They 4.43 name by them knows salesperson one least At 4.07 4.67 merchandise special ordering as such service 4.41 beyond” and “above offered have store hardware the at people The 4.42 name by salesperson one least at know They 3.82 community the build helping in involved is store hardware The 4.73 4.71 4.42 community the of part important an are store hardware the at people The it operates and owns that family the is store hardware the makes what of Part days 30 next the in once least at store hardware the visit to expect They 4.51 4.75 an apply not 4.79 Did likely. 4.73 highly meaning five and apply not did meaning one with scale likely.highly to unlikely highly from range which ratings, the in five-point included not were a 4.67 on based are ratings Average 4.68 4.66 prices best the get to store hardware the to Go questions answer to know-how the have to store’ssalespeople hardware the on Rely need they that stock in products the have to store hardware the on Rely future the in problem a solve to first store hardware the to Go community business local the supporting of way a as store hardware the to Go The extent to which customers agree that... agree customers which to extent The to... are customers likely How : MEN VS.MEN WOMEN : MEN VS.MEN WOMEN e Women Men e Women Men Average Ratings Average Average Ratings Average swers 2006 What Matters to Customers 25 ikely to at that type cts purchased. Average Ratings Average Ratings Average Ratings Men Women Men Women Men Women How likely customers are to purchase at hardware stores... Paint and decoratingOther (housewares, automotives, sporting goods, etc.) 2.92 3.10 2.93 2.96 Hardware and toolsSeasonal (lawn and garden, Christmas, etc.) 3.01 3.12 3.52 3.25 Plumbing, heating, lighting, electricalBuilding materials, flooring, lumber, wallcovering 2.68 3.65 2.55 3.35 Customers say they shop at hardware stores... home improvement centers... How likely customers are to purchase at big-box When they are looking for the lowest pricesAverage ratings are based on ago to hardware five-pointstore. scale with one meaning much more likely to go to big-box and five meaning much more l 2.63 2.98 When they are looking for the highest quality productsWhen they are looking for specific brand names 4.01 3.46 4.21 3.76 When they want salespeople who can show them how to use the products once they get home 4.32 4.49 When they want salespeople to help them find exactly what they needWhen they are in a hurryWhen they want salespeople who can knowledgeably answer questions 4.50 4.46 4.59 4.51 4.54 4.54 When they want salespeople available to help them 4.58 4.64 Average ratings are based on five-pointof store. Cannot remember answers were not included in the ratings, which range from scaleno products purchased to most or all produ with one meaning cannot remember and five meaning most or all products purchased Seasonal (lawn and garden, Christmas, etc.)Paint and decoratingOther (housewares, automotives, sporting goods, etc.) 2.97 3.23 3.05 3.23 3.08 3.17 Building materials, flooring, lumber, wallcoveringHardware and tools 4.12 3.92 3.27 3.00 Plumbing, heating, lighting, electrical 3.35 3.26 WHERE MEN AND WOMEN BUY WHY MEN AND WOMEN SHOP AT HARDWARE STORES WHERE MEN AND WOMEN BUY 26 Russell R. Mueller Retail Hardware Research Foundation 2006 CUSTOMER SATISFACTIONCUSTOMER rvd xethl nsligpolm .341 .04.12 4.10 4.19 4.13 problems solving in help expert Provide fe etlsrie .441 .53.96 4.05 4.19 4.13 4.14 3.98 4.16 4.28 4.19 3.50 4.34 4.13 4.45 4.15 4.20 4.31 4.18 4.00 4.17 3.95 4.34 4.23 4.42 answer apply not Did excellent. 4.11 meaning 4.38 five and 4.14 apply not did meaning 4.14 one with scale 4.26 excellent. to poor from range which ratings, five-point the in included a on 3.75 based are ratings Average 4.29 4.22 customer’shome to purchases Deliver 4.24 services rental Offer 2.02 4.35 4.22 4.18 store the at purchased 4.32 2.31 product a installing 4.00 e.g.: home; at 4.23 assistance Provide 4.12 vehicles into purchases load Help 4.00 2.40 4.32 4.30 store the entering when greeting Personal 1.72 items broken repair to services Provide 3.25 4.14 4.14 1.73 quickly purchases complete Help 2.68 paint mix e.g.: home; at use for ready products Get 1.85 home at products 2.55 install or use to how understanding in help expert Provide 2.50 3.55 2.79 needed are products 3.20 2.74 what exactly understanding in help expert Provide 2.52 3.65 2.79 3.22 problems solving in help expert Provide 3.75 2.42 3.98 2.85 3.15 important. extremely 2.28 meaning 4.14 five and 2.88 important not 3.50 meaning one with scale 3.67 five-point a on 2.00 based are ratings Average 3.57 customer’shome to purchases Deliver services rental Offer 3.84 3.63 3.64 store the at purchased product a installing e.g.: home; at 3.78 assistance Provide 4.00 3.59 vehicles into purchases load Help 3.86 3.60 store the entering when greeting Personal items broken repair to services Provide 4.38 3.63 quickly purchases complete Help paint mix e.g.: home; at use for ready products Get home at products install or use to how understanding in help expert Provide needed are products what exactly understanding in help expert Provide Hardware stores’ performance on satisfaction factors satisfaction on performance stores’ Hardware factors satisfaction shopping of Importance : MEN BY AGE GROUP AGE BY MEN 24 and 66 and 66 Older 46-65 25-45 Younger and 24 24 and 66 and 66 Older 46-65 25-45 Younger and 24 Average Ratings Average Average Ratings Average s were not were s 2006 What Matters to Customers 27 swers were Average Ratings Average Ratings 24 and Younger 25-45 46-65 Older 66 and 24 and Younger 25-45 46-65 Older 66 and MEN BY AGE GROUP : MEN BY AGE GROUP : The exent to which men agree that... How likely men are to... the hardware store were not in business Average ratings are based on a five-point scale with one meaning strongly disagree and five meaning strongly agree. They feel comfortable calling someone from the store with an after-hours emergency They could easily find another store to meet their needs as well if 3.43 2.88 2.99 2.57 3.19 2.65 3.43 2.65 At least one salesperson knows them by nameThey consider at least one salesperson a friend 3.88 4.13 3.91 3.59 3.97 3.86 4.08 4.05 The people at the hardware store have offered “above and beyond” service such as ordering special merchandise 4.38 3.85 4.14 4.24 of the community The hardware store is involved in helping build the communityThey know at least one salesperson by name 3.75 4.29 4.25 4.35 4.13 4.01 4.18 4.27 Part of what makes the hardware store is the family that owns and operates it The people at the hardware store are an important part 4.25 4.31 4.44 3.88 4.47 4.34 4.39 4.54 They expect to visit the hardware store at least once in the next 30 days 4.88 4.76 4.73 4.65 Average ratings are based on anot included in five-pointthe ratings, which range from highly unlikely to highly likely. scale with one meaning did not apply and five meaning highly likely. Did not apply an know-how to answer questions Go to the hardware store to get the best prices 3.13 3.73 3.78 3.98 in stock that they need Rely on the hardware salespeople store’s to have the 4.00 4.42 4.47 4.67 local business community Go to the hardware store first to solve a problem in the futureRely on the hardware store to have the products 4.00 4.60 4.69 3.88 4.70 4.56 4.67 4.75 Refer the hardware store to friends or family Go to the hardware store as a way of supporting the 4.17 4.13 4.67 4.76 4.73 4.75 4.63 4.81 RELATIONSHIPS WITH HARDWARE STORES OPINIONS ABOUT HARDWARE STORES 28 Russell R. Mueller Retail Hardware Research Foundation 2006 WHY MEN SHOP AT HARDWARE STORES HARDWARE AT SHOP MEN WHY BUY MEN WHERE lmig etn,lgtn,eetia .035 .43.79 3.64 3.53 3.00 electrical lighting, heating, Plumbing, hnte r okn o h oetpie .324 .92.81 2.59 4.66 3.69 2.49 4.54 3.43 4.24 2.43 4.34 3.20 3.99 4.71 3.00 l more 3.74 much meaning five 4.56 4.43 and big-box to go to likely more much meaning one 3.86 with scale store. hardware to go five-point a 4.44 4.33 on based are ratings Average 3.03 4.61 4.64 4.35 prices 4.11 lowest the for looking are they When 3.11 3.25 4.51 names brand specific for looking are they When 4.57 4.29 4.29 products quality highest the for looking are they When 3.26 3.13 4.32 4.47 home get they once products the use to 2.43 how them show can who salespeople want they When 3.33 4.43 4.86 questions answer 3.14 knowledgeably can who salespeople want they When 3.26 3.02 hurry a in are they When 3.25 3.20 need they what 2.94 exactly find them help to salespeople want they When 3.63 3.00 4.06 them help 3.26 to available salespeople want they When 2.99 2.96 3.43 3.58 4.13 3.00 2.83 3.40 purchased 3.56 2.81 products all or most 4.19 meaning five and remember cannot meaning one produ all or most to purchased with products no from 2.63 range which ratings, the in scale included not were answers remember Cannot store. of 3.35 five-point on based 4.17 are ratings Average 3.25 etc.) goods, sporting automotives, (housewares, Other 3.08 2.79 decorating and Paint 3.06 etc.) Christmas, garden, and (lawn Seasonal 3.05 tools and Hardware 2.67 2.86 2.68 wallcovering lumber,flooring, materials, Building 2.68 2.75 electrical lighting, heating, Plumbing, 3.43 2.65 3.25 etc.) goods, sporting automotives, (housewares, Other decorating and Paint etc.) Christmas, garden, and (lawn Seasonal tools and Hardware wallcovering lumber,flooring, materials, Building Men say they shop at hardware stores... hardware at shop they say Men centers... improvement home big-box at purchase to are men likely How stores... hardware at purchase to are men likely How : BY AGE GROUP AGE BY : BY AGE GROUP AGE BY 24 and 66 and 66 Older 46-65 25-45 Younger and 24 24 and 66 and 66 Older 46-65 25-45 Younger and 24 and 66 Older 46-65 25-45 Younger and 24 Average Ratings Average Average Ratings Average Ratings Average cts purchased. cts at that type that at ikely to ikely 2006 What Matters to Customers 29 s were not Average Ratings Average Ratings 24 and Younger 25-45 46-65 Older 66 and 24 and Younger 25-45 46-65 Older 66 and WOMEN BY AGE GROUP : Hardware stores’ performance on satisfaction factors Importance of shopping satisfaction factors Average ratings are based on a included in the five-pointratings, which range from poor to excellent. scale with one meaning did not apply and five meaning excellent. Did not apply answer Offer rental servicesDeliver purchases to homecustomer’s 3.00 4.00 4.36 4.50 4.08 4.18 4.18 4.20 Provide assistance at home; e.g.: installing a product purchased at the store 4.00 4.38 4.26 4.05 Personal greeting when entering the storeHelp load purchases into vehicles 4.00 4.43 4.00 4.39 4.63 4.39 4.61 4.08 Get products ready for use at home; e.g.: mix paintHelp complete purchases quicklyProvide services to repair broken items 4.50 4.61 4.46 4.37 4.50 4.60 4.63 4.50 4.44 4.45 4.23 4.51 Provide expert help in understanding how to use or install products at home 4.33 4.49 4.41 4.26 Provide expert help in solving problemsProvide expert help in understanding exactly what products are needed 4.00 4.47 4.40 4.49 4.55 4.20 4.65 4.42 Average ratings are based on a five-point scale with one meaning not important and five meaning extremely important. Offer rental servicesDeliver purchases to homecustomer’s 2.80 2.20 1.99 2.60 1.96 2.29 2.40 2.22 Provide assistance at home; e.g.: installing a product purchased at the store 3.00 3.05 2.71 2.96 Provide services to repair broken items Personal greeting when entering the storeHelp load purchases into vehicles 5.00 3.20 3.70 3.16 3.72 4.40 2.94 3.57 3.23 3.02 3.16 3.26 Get products ready for use at home; e.g.: mix paintHelp complete purchases quickly 4.20 4.16 3.94 3.86 3.60 3.82 3.70 3.80 products are needed Provide expert help in understanding how to use or install products at home 4.40 4.18 4.15 4.00 Provide expert help in solving problemsProvide expert help in understanding exactly what 4.20 4.29 4.40 4.26 4.48 4.18 4.39 4.41 CUSTOMER SATISFACTION 30 Russell R. Mueller Retail Hardware Research Foundation 2006 RELATIONSHIPS WITH HARDWARE STORES HARDWARE WITH RELATIONSHIPS STORES HARDWARE ABOUT OPINIONS hyfe ofral aln oen rmte .028 .63.02 3.54 3.60 2.96 2.20 3.53 3.60 2.87 2.19 3.95 3.55 agree. strongly meaning 3.52 five 3.80 and disagree strongly meaning 3.94 one 2.73 3.60 with scale 4.53 five-point a on based 4.00 are ratings Average 4.31 2.80 3.76 4.48 business in not were store hardware the if 3.97 4.00 well as needs their meet to store another find easily could They 4.20 4.51 emergency after-hours an with store 4.02 4.56 4.60 the from someone calling comfortable feel They 4.37 4.20 friend a salesperson one least at consider They 4.42 4.67 name 4.09 by them knows salesperson one least At 4.30 merchandise special ordering as such service 4.70 beyond” 4.60 and “above offered have store hardware the at people The 3.80 name by salesperson one least at know 4.61 They community the build helping in involved is store hardware The 4.75 community the of part important 4.44 an are store hardware the at people The it operates and 4.05 owns that family the is store hardware the makes what of Part days 30 next 3.73 the 4.77 in 4.84 once least at store hardware the visit to expect They 4.40 4.75 4.81 4.84 4.64 an apply 4.47 not Did likely. highly meaning five 4.85 and 4.81 4.79 apply 4.60 not did meaning one with 4.60 likely.highly scale to unlikely highly from range which ratings, the in included not five-point a on based are 4.79 ratings 4.83 Average 4.79 prices best the get to store hardware the to Go 4.75 5.00 4.55 questions answer to know-how the have to store’ssalespeople hardware the on 4.40 Rely 4.60 need they that stock in products the have to store hardware the on Rely future the in problem a solve to first store hardware the to Go community business local the supporting of way a as store hardware the to Go family or friends to store hardware the Refer The extent to which women agree that... agree women which to extent The to... are women likely How : WOMEN BY AGE GROUP AGE BY WOMEN : WOMEN BY AGE GROUP AGE BY WOMEN 24 and 66 and 66 Older 46-65 25-45 Younger and 24 24 and 66 and 66 Older 46-65 25-45 Younger and 24 Average Ratings Average Average Ratings Average swers were swers 2006 What Matters to Customers 31 ikely to at that type cts purchased. Average Ratings Average Ratings Average Ratings 24 and Younger 25-45 46-65 Older 66 and 24 and Younger 25-45 46-65 Older 66 and 24 and Younger 25-45 46-65 Older 66 and BY AGE GROUP : BY AGE GROUP : Women say they shop at hardware stores... How likely women are to purchase at big-box home improvement centers... How likely women are to purchase at hardware stores... Average ratings are based on a five-pointgo to hardware store. scale with one meaning much more likely to go to big-box and five meaning much more l When they are looking for specific brand namesWhen they are looking for the lowest prices 2.80 3.40 2.40 3.83 2.79 4.06 3.00 3.19 use the products once they get home When they are looking for the highest quality products 4.40 3.85 4.30 4.37 When they want salespeople who can knowledgeably answer questions When they want salespeople who can show them how to 4.80 4.80 4.31 4.34 4.60 4.60 4.52 4.38 what they need When they are in a hurry 4.40 4.51 4.64 4.39 When they want salespeople available to help themWhen they want salespeople to help them find exactly 4.40 4.80 4.55 4.42 4.70 4.69 4.63 4.53 Average ratings are based on five-pointof store. Cannot remember answers were not included in the ratings, which range from scaleno products purchased to most or all produ with one meaning cannot remember and five meaning most or all products purchased Paint and decoratingOther (housewares, automotives, sporting goods, etc.) 2.67 3.04 2.96 3.32 3.40 3.12 3.10 3.38 Hardware and toolsSeasonal (lawn and garden, Christmas, etc.) 3.20 3.18 3.19 3.38 2.20 3.14 2.93 3.15 Plumbing, heating, lighting, electricalBuilding materials, flooring, lumber, wallcovering 4.20 3.98 3.20 3.92 3.27 3.83 3.22 3.39 Other (housewares, automotives, sporting goods, etc.) 4.00 2.83 3.15 3.26 Hardware and toolsSeasonal (lawn and garden, Christmas, etc.)Paint and decorating 3.75 2.97 3.21 3.03 3.67 3.03 3.50 2.84 3.39 3.16 3.09 2.69 Plumbing, heating, lighting, electricalBuilding materials, flooring, lumber, wallcovering 2.50 2.63 3.50 2.58 3.47 2.38 3.20 3.55 WHY WOMEN SHOP AT HARDWARE STORES WHERE WOMEN BUY 32 Russell R. Mueller Retail Hardware Research Foundation 2006 CUSTOMER SATISFACTIONCUSTOMER fe etlsrie .322 2.44 2.29 1.87 2.23 1.64 2.84 1.90 2.43 2.61 3.98 2.99 3.07 2.16 2.88 3.55 2.77 3.03 2.72 3.69 2.89 important. extremely 3.55 meaning five and 3.63 important not meaning one with scale five-point a on based 3.42 are ratings 4.03 Average 3.65 customer’shome to purchases Deliver 3.44 4.16 services rental Offer 3.79 store the at purchased product a installing e.g.: home; at assistance Provide 3.70 3.97 4.29 vehicles into purchases load Help store the entering when greeting Personal 3.78 items broken repair to services Provide quickly purchases complete Help 4.10 paint mix e.g.: home; at use for ready products Get home at products install or use to how understanding in help expert Provide needed are products what exactly understanding in help expert Provide problems solving in help expert Provide fe etlsrie .541 4.23 4.12 4.17 4.05 3.83 4.35 4.06 4.16 4.17 4.46 4.28 4.23 3.95 4.35 4.32 4.18 4.29 4.16 4.37 answer 4.24 apply not Did excellent. 4.28 meaning five and apply 4.32 not did meaning one with scale excellent. to poor from range which ratings, five-point the in included a on based 4.13 are 4.35 ratings Average 4.33 customer’shome to purchases Deliver 4.11 4.26 services rental Offer 4.32 store the at purchased product a installing 4.21 e.g.: home; at assistance Provide 4.35 4.39 vehicles into purchases load Help store the entering when greeting Personal 4.20 items broken repair to services Provide quickly purchases complete Help 4.37 paint mix e.g.: home; at use for ready products Get home at products install or use to how understanding in help expert Provide needed are products what exactly understanding in help expert Provide problems solving in help expert Provide Hardware stores’ performance on satisfaction factors satisfaction on performance stores’ Hardware factors satisfaction shopping of Importance : BY TYPE OF CUSTOMER OF TYPE BY orefr orefr Pr Yourselfers Yourselfers Do-It- Light orefr orefr Pr Yourselfers Yourselfers Do-It- Light Serious Do-It- Serious Serious Do-It- Serious Average Ratings Average Average Ratings Average ofessionals ofessionals s were not were s 2006 What Matters to Customers 33 swers were ofessionals ofessionals Average Ratings Average Ratings Serious Do-It- Serious Do-It- Light Do-It- Yourselfers Yourselfers Pr Light Do-It- Yourselfers Yourselfers Pr BY TYPE OF CUSTOMER : BY TYPE OF CUSTOMER : The extent to which customers agree that... How likely customers are to... the hardware store were not in business Average ratings are based on a five-point scale with one meaning strongly disagree and five meaning strongly agree. They feel comfortable calling someone from the store with an after-hours emergency They could easily find another store to meet their needs as well if 3.05 2.60 3.18 2.46 3.50 2.50 At least one salesperson knows them by nameThey consider at least one salesperson a friend 3.72 3.70 3.93 3.76 4.47 4.19 They know at least one salesperson by nameThe people at the hardware store have offered “above and beyond” service such as ordering special merchandise 4.06 4.10 4.25 4.01 4.07 4.51 of the community The hardware store is involved in helping build the community 4.31 4.22 4.40 Part of what makes the hardware store is the family that owns and operates it The people at the hardware store are an important part 4.42 4.44 4.41 4.40 4.47 4.49 They expect to visit the hardware store at least once in the next 30 days 4.68 4.75 4.79 Average ratings are based on anot included in five-pointthe ratings, which range from highly unlikely to highly likely. scale with one meaning did not apply and five meaning highly likely. Did not apply an to answer questions Go to the hardware store to get the best prices 3.91 3.80 3.94 that they need Rely on the hardware salespeople store’s to have the know-how 4.68 4.48 4.40 local business community Go to the hardware store first to solve a problem in the futureRely on the hardware store to have the products in stock 4.72 4.71 4.63 4.68 4.69 4.64 Refer the hardware store to friends or familyGo to the hardware store as a way of supporting the 4.75 4.79 4.70 4.77 4.72 4.79 RELATIONSHIPS WITH HARDWARE STORES CUSTOMERS’ CUSTOMERS’ OPINIONS 34 Russell R. Mueller Retail Hardware Research Foundation 2006 WHY CUSTOMERS SHOP AT HARDWARE STORES HARDWARE AT SHOP CUSTOMERS WHY BUY CUSTOMERS WHERE hnte r okn o h oetpie .126 2.66 4.46 3.61 2.61 4.61 3.42 2.81 4.03 4.56 3.56 3.98 4.43 4.44 l more much meaning five and big-box to 4.12 go to likely 4.30 more much meaning one with scale store. five-point hardware to go a on 4.43 based are 3.09 ratings 4.48 Average 4.49 4.43 prices lowest the for looking are they When 3.29 4.53 3.12 names brand specific for looking 4.46 are they When 4.58 products quality highest the for looking are they When 3.31 home get they once products the use 3.10 4.57 4.65 to how them show can who salespeople want they When questions answer 3.11 knowledgeably can who salespeople want 3.26 they When 3.01 hurry a in are they When 3.42 need they what 3.21 exactly find them help 3.20 to salespeople want they 2.95 When 3.96 3.38 them help to available salespeople want they When 3.67 3.24 3.03 2.98 4.27 3.26 purchased products 3.55 all or most meaning five 2.95 and remember cannot 4.09 meaning one with produ all or most to purchased products no scale from range which ratings, the in included not were answers remember Cannot store. of five-point on based are ratings Average 3.44 3.04 etc.) goods, 2.97 sporting automotives, (housewares, Other 3.72 decorating and Paint 3.10 etc.) Christmas, garden, and (lawn Seasonal 3.14 3.06 3.79 tools and Hardware wallcovering lumber,flooring, materials, Building 3.07 3.08 electrical lighting, heating, Plumbing, 2.61 3.49 2.58 etc.) goods, sporting automotives, (housewares, Other decorating and Paint etc.) Christmas, garden, and (lawn Seasonal tools and Hardware wallcovering lumber,flooring, materials, Building electrical lighting, heating, Plumbing, Customers say they shop at hardware stores... hardware at shop they say Customers centers... improvement home big-box at purchase to are customers likely How stores... hardware at purchase to are customers likely How : BY TYPE OF CUSTOMER OF TYPE BY : CUSTOMER TYPE CUSTOMER orefr orefr Pr Yourselfers Yourselfers Do-It- Light orefr orefr Pr Yourselfers Yourselfers Do-It- Light Pr Yourselfers Yourselfers Do-It- Light Serious Do-It- Serious Serious Do-It- Serious Do-It- Serious Average Ratings Average Ratings Average Average Ratings Average ofessionals ofessionals ofessionals cts purchased. cts at that type that at ikely to ikely