AALBORG UNIVERSITY a Thesis Presented for Msc

AALBORG UNIVERSITY A thesis presented for MSc. International Business Economics Consumer Demographics and food shopping Motives in Ghanaian Supermarkets: A Case Study of Accra and Kumasi. Author: Schmidt Helmut Dadzie E-mail: [email protected] Submitted on: 2/12/2016 Supervisor: Felix Nandonde 1 Abstract The thesis explores demographic and food shopping motives of Ghanaian supermarket consumers in two of the major Ghanaian cities- Accra and Kumasi. It used the survey instrument to collect 300 valid responses from shoppers in the case cities. And analysis of the demographic distribution gives a picture of young and highly educated consumers with varied levels of income. A factor analysis of shopping motives yielded 4 main typology of shoppers: Curious Economic Shopper; Quality and Safety shopper; Aesthetic Shopper and Social Shopper. These shopper typologies cut across various Hedonic and Utilitarian shopper motives in the literature. Again shopper motives were found to be more fluid than rigid because the four motives may have underlying similarities. The identified shopper motives were used as summated scale and their variation with demographic factors explored. A Post Hoc test showed varied degrees of significant differences between various demographic variables and shopping motives. The results were then discussed and recommendations made based on the findings. 2 Acknowledgement This thesis is dedicated to all who have helped in diverse ways in making this possible. Special thanks to Felix Nandonde, my supervisor, for your support and guidance. And your patience too. I also recognise the help of Danida Fellowship Centre for their support in funding my field work and to all the guys who helped with the data collection. Finally this work is dedicated to the Woman who can „fly‟. Mom. 3 Contents Chapter one: Introduction ...................................................................................................................... 7 1.1 Background ................................................................................................................................... 7 1.2 Research justification .................................................................................................................... 8 Chapter 2: Literature Review ................................................................................................................10 2.0 Introduction .................................................................................................................................10 2.1 Theories of retail change .............................................................................................................10 2.2 Shopping motives and shopper typology ....................................................................................13 2.2.0 „Why do people Shop?‟ ........................................................................................................13 2.2.1 Typologies of shopping motives ..........................................................................................15 2.3 Shopping motives demographic variables ...................................................................................18 Chapter 3: Supermarketization and Ghanaian Food retail environment ..............................................20 2.1 Food retail Environment in Ghana: Traditional Food retailing ..................................................21 2.1.0 Open-air markets ..................................................................................................................21 2.1.1 Hawkers/Street vendors ........................................................................................................22 2.1.2 Mom and pop shops .............................................................................................................22 2.2 Changing retail environment in Ghana........................................................................................23 Chapter 3: Methodology ......................................................................................................................28 3.0 Introduction .................................................................................................................................28 3.1 Theory of Science: Paradigmatic Foundation and Research approach .......................................28 3.1.0 Thesis paradigmatic position ................................................................................................30 3.2 Methods and techniques ..............................................................................................................32 3.2.0 Research design ....................................................................................................................32 3.3 Study area ....................................................................................................................................33 3.3.0 Accra ....................................................................................................................................34 3.3.1 Kumasi..................................................................................................................................37 3.4 Sampling ......................................................................................................................................38 3.5 Data collection .............................................................................................................................39 3.6 Questionnaire development .........................................................................................................39 3.7 Analysis and interpretation of findings .......................................................................................43 Chapter 4: Analysis and findings ..........................................................................................................44 Introduction .......................................................................................................................................44 Section A: Demographic description of food shoppers .....................................................................44 Section B: Food shopping motives ....................................................................................................55 SECTION C: Demographic factors and Shopping motives ..............................................................61 Chapter 5: Summary of findings with discussions .................................................................................67 4 Recommendations ................................................................................................................................71 Limitations .............................................................................................................................................73 Conclusion .............................................................................................................................................74 References .............................................................................................................................................75 APPENDIX ..............................................................................................................................................79 List of tables Table 1 Selected Literature On Food And Grocery Shopping Typologies ...........................................16 Table 2 Definition of paradigm concepts .............................................................................................28 Table 3 the objectivist and Subjectivist Research approaches ..............................................................29 Table 4 population, urbanization and educational distribution Ghana, Greater Accra and Ashanti Regions ..................................................................................................................................................34 Table 5 Selected supermarkets ..............................................................................................................35 Table 6: Sample Demographic Description .........................................................................................44 Table 7 Vehicle Ownership ...................................................................................................................47 Table 8 Cross Tabulation of Vehicle ownership and normal transportation mode to supermarkets...47 Table 9 Are you able to buy the majority of your food from your preferred food market(s) ..............48 Table 10 Most important Reasons for choosing supermarkets ............................................................49 Table 11 Cross Tabulation of Socioeconomic Factors and frequency of purchase ...............................51 Table 12 Methods of Multivariate analysis (Adopted from Bryman & Bell 2011) ..............................52 Table 13 Chi-Squared and phi test results.............................................................................................53 Table 14 Spearman's rho test results ....................................................................................................53 Table 15 Confirmation of selected Components with Monte Carlo PCA parallel analysis. Extracted from indicate appendices ...............................................................................................................................57 Table 16 result of Principal Component Analysis ..................................................................................58

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