Traditional bazaar or supermarkets: A probit analysis of affluent consumer perceptions in Hanoi

Abstract

This paper sheds light on the preferences and behaviour of Vietnamese consumers in an emerging market economy. We analysed survey data of affluent consumers in Hanoi by using a binary choice Probit model for traditional bazaars versus supermarkets. The purpose of the analysis was to measure the factors which influence decision-making by consumers when selecting particular retail outlets for shopping. Our results show that freshness, price and convenience are important in shaping the choice by consumers for traditional outlets for fresh food, while price played a key role in selecting shopping outlets for processed food and drinks and non-food products. The results provide a basis for understanding the strengths and weaknesses of the old and the new retail outlet formats.

The nature of informal food bazaars: Empirical results for Urban Hanoi, Vietnam

“…The impact of the perishable food category and consumers' perceptions of the level of retail outputs (safety, quality, and freshness) of retail outlets were found to be the overwhelming determinants of retail format choice (see e.g. Darley and Lim, 1993;Goldman et al, 1999Goldman et al, , 2002Goldman and Hino, 2005;Maruyama and Trung, 2007b). Most consumers in our interviews indicated that safety of goods for health considerations and freshness are the most important criteria for choosing stores for fresh food.…”

“…Sexton, 1974;Thompson, 1967;Prasad, 1972;Reynolds and Darden, 1972;Darden and Perreault, 1976;Jackson et al, 1985;Robert and Wortzel, 1979); in addition, a few studies included conventional retail stores. Recent studies include other types of outlets such as traditional wet markets that are typical retail arrangements in Asian countries, in addition to supermarket chains and conventional retail stores (Zain and Rejab, 1989;Goldman et al, 2002;Goldman and Hino, 2005;Maruyama and Trung, 2007b). There is no previous literature on consumer choice between formal and informal markets.…”

Waste generation in traditional organized bazaars: a case study of organic waste sources in Da Nang City, Viet Nam

“…Most of the other sources in the list are restaurants and hotels. 1 Research that compared modern and traditional marketing sectors of vegetables in Ho Chi Minh City, Viet Nam, noted the importance of improving waste management within the traditional marketing sector [4]. There is no current official method for source separation or waste recycling in organized bazaars in Da Nang City.…”

“…In 2011, there were 8550 traditional organized bazaars and 638 supermarkets in Viet Nam [2]. Vietnamese consumers preferred to buy fresh food at traditional markets (including organized bazaars), but preferred to purchase processed food and other consumer goods at supermarkets [1]. Thus, traditional organized bazaars continue to function as a major distribution site for fresh food.…”

“…A traditional organized bazaar in Viet Nam is defined as ''a market established and formally approved by either the provincial or district level authorities'' (Maruyama and Trung [1]). An organized bazaar contains small retail and wholesale vendors and is usually administered by a management board.…”