The influence of consumer confidence on inter-format competition: An analysis based on the French Consumer Confidence Index

Abstract

The multiple store formats (Drive, hypermarkets, hard discount stores, convenience stores) tend to strengthen inter-format competition in addition to the intra-format competition. Thus, when he or she has to shop, the consumer is now facing several solutions. Research in marketing was much interested in determining the choice of store formats using variables such as the composition of the assortment, price, and sales promotions. More recently, analysts have raised the issue of whether the economic context could affect households’ preferences for store formats without providing a convincing answer. To contribute to this debate, which is now important at a time when many economies are in crisis, this research examines the influence of consumer confidence on households’ spending per trip. An analysis of panel data during the 2004–2013 period and four store formats shows that the changes (increase, decrease) in consumer confidence have asymmetric and nonlinear effects on households’ spending per trip across the different store formats and this also depends on the economic cycle (expansion, contraction).

The Relationship Between Credit Card Expenditures, Consumer Confidence and Consumers' Saving Tendencies

“…The effect of consumer expectation on the consumption is examined by Oduh, Oduh and Ekeocha (2012) for Nigerian economy between 2009-2011 and it was found that the variables having the greatest effect on consumption are the exchange rate and consumer confidence index. Similarly, Ngobo and Ingarao (2017) analyzed the impact of the consumer confidence index for France which is in the developed country category, and they stated that the increase or decreases in the consumer confidence index has asymmetric and nonlinear effect on expenses.…”