The “off-price” retailing concept is defined as the presentation of products in limited quantities in a disorganised retail environment where shoppers experience an extra level of “challenge”. “Off-price” shoppers are attracted to such “off-price” retail format and consider “off-price” shopping a competitive activity. They experience higher self-esteem with the belief of having outperformed other shoppers to secure limited goods at lower prices presented in a disorganised manner. Off-price retailing has expanded globally over the past decades, especially in the wake of COVID-19, as it has been known to thrive in times of market uncertainty. Today, off-price retail stores have become an important offering in shopping malls around the world.
Whilst earlier research has investigated the outcomes (i.e., satisfaction, re-purchase intentions) of these shopping experiences, factors that might impact the experience such as the level of involvement, have not been examined. In addition, existing literature indicates inconsistent and conflicting evidence regarding variation in consumption, specifically the behavioural mechanism underlying fashion choice, between East-Asian and Western cultures. Although the potential influence of cultures on involvement has been recognised earlier, their relationship remains largely unexplored.
This research aims to address these gaps by testing whether the off-price shoppers’ level of involvement impacts their experiences, overall satisfaction and repurchase intention. Moreover, an examination of the off-price shopper experience across specifically East-Asian (Chinese) and Western (Australian) cultures increases the reliability and explanatory power of
the concept and furthers knowledge of East-Asian consumption. Such cross-cultural research can detect if variations in off-price shoppers’ behaviours exist, enabling retailers to adapt marketing strategies accordingly.
The research draws on achievement goal theory, which explains why an individual’s level of involvement can impact their consumption experiences, level of satisfaction, and repeat behaviours. Simply put, the more involved in a task a person is, the more likely they will experience positive outcomes (sense of mastery, pride, and willingness to share knowledge), as they pursue goals (to locate a desired brand at an “off-price” retailer). The overall satisfaction from the attainment of shopping-related goals motivates repeated behaviours (repurchase). Moreover, cultural dimensions of individualism, uncertainty avoidance, long-term orientation, and indulgence are relevant to consumer involvement in off-price shopping. For example, in higher “uncertainty avoidance” cultures, individuals prefer clarity, certainty and less purchase risk, contrasting lower “uncertainty avoidance” cultures.
Method and sample
Data were collected via a self-completed, anonymous, online survey provided to a sample of 355 Australian and 400 Chinese shoppers who were identified as regularly shopping for fashion in off-price retail stores. Online surveys were sent to respondents via Qualtrics (in Australia) and Wenjuan (in China). Respondents who completed the survey too quickly, responded repetitively/inconsistently or failed integrity check items were removed.
Key findings
- Off-price fashion shopping experiences are present in both Western (Australian) and East-Asian (Chinese) cultures.
- Product involvement did not positively predict the off-price shopper’s level effort/mastery or pride experienced for either Australian or Chinese consumers – contrary to the prediction that deeper involvement with a product would motivate more time and effort invested to gain bargaining mastery and pride. Product involvement, however, positively predicted a willingness to share information with others.
- Purchase decision involvement positively predicted higher effort and mastery for off-price shoppers, as well as a greater pride and a willingness to share knowledge with others for both studied cultures. Here, they appear to be more involved in the shopping process by comparing brands, engaging in search behaviour, and visiting multiple retailers, rather than in the products.
- Similarly, advertising involvement positively predicted off-price shoppers’ effort and mastery invested, delivering authentic pride and shared knowledge for both the Australian and Chinese samples. This involvement type concerns the process of shopping in terms of paying attention to advertising mediums and discounting practices.
- Effort/mastery positively predicted the overall satisfaction of off-price shopping for both Australian and Chinese samples, suggesting that effort and mastery of this activity lead to satisfaction.
- The sharing of knowledge was not found to predict overall satisfaction – contrary to the expectation that the sharing of expert knowledge would fulfil the desire for social validation.
- Limited influencing effect was found between cultural differences and off-price shopping experience. The main difference revolves around pride, and Chinese consumers may experience lower pride due to their lower level of individualism and indulgence. This implies young adult Chinese consumers’ shift from collectivism to being more individual, fashion conscious, and status oriented. Hence, relatively few cultural differences in fashion purchasing behaviour exist today.
Recommendations
- The primary driving force behind the positive experience of off-price shoppers in both Chinese and Australian cultures is purchase decision-making and advertising involvement.
- Off-price shoppers are motivated by the “thrill of the hunt,” and retailers can enhance their experiences by manipulating product assortments, store layouts, interior signage, and social media posts to increase involvement and overall satisfaction.
- Global fashion retailers can capitalise on off-price consumer behaviour by implementing similar formats like Nordstrom and Nordstrom Rack, even as brand extensions, to cater to both East-Asian and Western markets.
- Due to the few cultural differences in fashion purchasing behaviour between Western and East-Asian consumers, retailers may not need to develop “group-oriented” advertising content for collectivist cultures as previously suggested.
- Due to the strong effects of advertising involvement in shaping the off-price shopping experience for both Australian and Chinese consumers, (fashion) retailers should creatively develop advertisements that stimulate off-price shoppers’ interest by presenting varying assortments and uncertain availability.
- Australian consumers are more likely to express pride and achievements openly, while Chinese consumers may control the gratification of their desires and place less emphasis on affective outcomes. Hence, retailers need to implement appropriate advertising strategies for different consumer markets.
- Fashion retailers should continue to provide unique experiences and merchandising practices to differentiate themselves and target off-price shoppers who have expanding spending power and are considered opinion leaders in their field.
Researcher
More information
The research article is also available on eprints.