DO CONSUMERS PUNISH RETAILERS WITH POOR WORKING CONDITIONS DURING COVID-19 CRISIS? AN EXPERIMENTAL STUDY OF Q-COMMERCE GROCERY RETAILERS

Year 2021, Volume: 8 Issue: 3, 140 - 153, 31.12.2021

Cagla Tugberk Ariker

https://doi.org/10.17261/Pressacademia.2021.1453

Abstract

Purpose- The pandemic resulted in an unexpected volume of customer demand for quick delivery of grocery products. This, in turn, caused a
terrific increase in the burden of delivery employees working for quick commerce (q-commerce) retailers. There was much news about working
conditions of couriers during the pandemic. In this study, under the theoretical guidelines of the Stimulus-Organism-Response model (SOR), the
author aims to investigate how information regarding working conditions (stimuli) affect evaluation of brand reputation (organism) and retail
patronage intention (response). The framework of the study is limited to q-commerce grocery retailers because of their significant growth
potential.
Methodology- A within-subjects experimental design was implemented to collect data. The author developed two scenarios based on true events.
In the scenarios, two hypothetical q-commerce retailers were narrated to manipulate good and poor working conditions of delivery employees.
Paired sample t-tests were conducted to test the mean differences of brand reputation and retail patronage intention. Additionally, two separate
studies were conducted to test what if a q-commerce grocery retailer with good working conditions also set higher prices.
Findings- The findings show that the brand reputation of q-commerce grocery retailers with good working conditions is higher. Similarly, customers
show higher retail patronage intention for q-commerce grocery retailers with good working conditions. The results are valid even if the prices of
q-commerce grocery retailers with good working conditions are higher.
Conclusion- The current article is one of the first empirical studies on q-commerce retailers. The study also contributes by providing new insights
about consumer reactions to poor working conditions of retailers under extraordinary circumstances from which they also suffer. Poor working
conditions cause to lose customers besides the ethical considerations, but retention of customers is a must for the survival of infant q-commerce
retailers.

Keywords

Q-commerce, working conditions, COVID-19, brand reputation, retail patronage intention

References

• Ahmad, R. (2017). Fatal brand crisis: can bolstering strategy rebuild the tarnished reputation? Journal of Technology Management and Business, 4(2), 1-14.
• Al Bhadily, M. (2015). Does the Bangladesh accord on building and fire safety provides a sustainable protection to ready-made garment workers? Review of Integrative Business and Economics Research, 4(4), 158-177.
• Arslan, B. (2020). Şok market çalışanları konuştu: Günde 12 saat çalıştırılıyoruz; yoğun iş temposunda kendimizi Koronavirüs'ten nasıl koruyabiliriz ki? [online], T24, https://t24.com.tr/haber/sok-market-calisanlari-konustu-gunde-12-saat-calistiriliyoruz-yogun-is-temposunda-kendimizikoronavirus-ten-nasil-koruyabiliriz-ki,875043 [Date Accessed: April 30, 2020].
• Bagozzi, R. P. (1986). Attitude formation under the theory of reasoned action and a purposeful behavior reformulation. British Journal of Social Psychology, 25(2), 95-107.
• Baker, J., Levy, M., Grewal, D. (1992). An experimental approach to making retail store environmental decisions. Journal of Retailing, 68(4), 445.
• Baker, J., Parasuraman, A., Grewal, D., Voss, G. B. (2002). The influence of multiple store environment cues on perceived merchandise value and patronage intentions. Journal of Marketing, 66(2), 120-141.
• Barber, W.J., Murray C. (2021). Walmart’s inadequate paid sick leave cost lives. It needs to change [online], Fortune, https://fortune.com/2021/06/03/walmart-shareholders-meeting-2021-covid-task-force/ [Date Accessed June 3, 2021].
• Che, X., Katayama, H., Lee, P. (2020). Willingness to pay for brand reputation: lessons from the Volkswagen diesel emissions scandal (20/02), London, UK: City, University of London.
• Dablanc, L., Morganti, E., Arvidsson, N., Woxenius, J., Browne, M., Saidi, N. (2017). The rise of on-demand ‘Instant Deliveries’ in European cities. Supply Chain Forum: An International Journal, 18(4), 203-217.
• Delivery Hero (2021). Delivery Hero significantly expands quick commerce and records 400,000 daily orders in April [online], Delivery Hero, https://www.deliveryhero.com/newsroom/delivery-hero-significantly-expands-quick-commerce/ [Date Accessed: April 29, 2021].
• Diallo, M. F., Lambey-Checchin, C. (2017). Consumers’ perceptions of retail business ethics and loyalty to the retailer: The moderating role of social discount practices. Journal of Business Ethics, 141(3), 435-449.
• Dodds, W. B., Monroe, K. B., Grewal, D. (1991). The effects of price, brand, and store information on the buyers’ perception of products. Journal of Marketing Research, 28(3), 307-19.
• Donovan, R., Rossiter, J. (1982). Store atmosphere: an environmental psychology approach. Journal of Retailing, 58.1: 34-57.
• Elnahla, N., Neilson, L.C. (2021). The stressors faced by retail workers during the COVID-19 pandemic. Association of Marketing Theory and Practice Proceedings, 2021. 2.
• Eriksson, N., Stenius, M. (2020). Changing behavioral patterns in grocery shopping in the initial phase of the COVID-19 crisis—a qualitative study of news articles. Open Journal of Business Management, 8(05), 1946-1961.
• Eroglu, S. A., Machleit, K. A., Davis, L. M. (2001). Atmospheric qualities of online retailing: a conceptual model and implications. Journal of Business Research, 54(2), 177-184.
• Esper, T. L. (2020). Supply chain management amid the coronavirus pandemic. Journal of Public Policy and Marketing, 40(1), 101-102.
• Foley, J., Kendrick, J. (2006). Balanced Brand: How to Balance the Stakeholder Forces That Can Make or Break Your Business. USA: John Wiley and Sons, ISBN: 978-0-787-98309-3
• Fombrun, C., Shanley, M. (1990). What's in a name? reputation building and corporate strategy. Academy of Management Journal, 33(2), 233- 258.
• Getir [@getir]. (2020). Kuryelerimiz var güçleriyle dur durak bilmeden çalışıyorlar. Koronavirüs salgınından kendilerini koruyabilmeleri için dinlenmeleri ve dinç kalmaları gerekiyor. Bu sebeple çalışma [online], Twitter, https://twitter.com/getir/status/1242539799304646656 [Date Accessed: March 24, 2021].
• Gistri, G., Corciolani, M., Pace, S. (2018). The interaction effect between brand identification and personal crisis relevance on consumers’ emotional reactions to a fashion brand crisis. Journal of Global Fashion Marketing, 9(3), 252-269.
• Glovo (2021). About Glovo [online], Glovo, https://about.glovoapp.com/en/ [Date Accessed May 12, 2021].
• Günday, G., Karabon, M., Kooij, S., Moulton, J., Omeñaca, J. (2020). How European shoppers will buy groceries in the next normal. McKinsey and Company, 1-10.
• Graham, B.Z., Cascio, W.F. (2018). The employer-branding journey: its relationship with cross-cultural branding, brand reputation, and brand repair. Journal of the Iberoamerican Academy of Management, 16(4), 363-379.
• Heinonen, K., Strandvik, T. (2020). Reframing service innovation: COVID-19 as a catalyst for imposed service innovation. Journal of Service Management, 32(1), 101-112.
• Hemphill, T. A. (2005). Rejuvenating Wal-Mart's reputation. Business Horizons, 48(1), 11-21.
• Hiscox, M. J., Smyth, N. F. (2006). Is there consumer demand for improved labor standards? evidence from field experiments in social labeling. Department of Government, Harvard University.
• Honea, H., Dahl, D. W. (2005). The promotion affect scale: defining the affective dimensions of promotion. Journal of Business Research, 58(4), 543-551.
• Hwa, E. T. B., Perumal, S. (2017). Determinants of retail patronage–a systematic literature review perspective. IPBJ, 9(1), 27-40.
• Jang, S. S., Namkung, Y. (2009). Perceived quality, emotions, and behavioral intentions: Application of an extended Mehrabian–Russell model to restaurants. Journal of Business Research, 62(4), 451-460.
• Järvinen, R., Suomi, K. (2011). Reputation attributes in retailing services: managerial perspective. Managing Service Quality: An International Journal, 21(4), 410-423.
• Kim, J., Lennon, S. J. (2013). Effects of reputation and website quality on online consumers' emotion, perceived risk and purchase intention: based on the stimulus‐organism‐response model. Journal of Research in Interactive Marketing, 7(1), 33-56.
• Lange, N. (2020). Ouick commerce – the next generation of e-commerce [online], Nicki Lange, https://www.nickilange.com/journal/2020/4/28/quick-commerce-the-next-generation-of-e-commerce [Date Accessed: May 2, 2021].
• Leng H.K. (2021). The COVID-19 pandemic and its impact on grocery retailing: a Singapore case study. in: Lee J., Han S.H. (eds) The Future of Service Post-COVID-19 Pandemic, Vol. 2. The ICT and Evolution of Work. Singapore: Springer.
• Luqman, A., Cao, X., Ali, A., Masood, A., Yu, L. (2017). Empirical investigation of Facebook discontinues usage intentions based on SOR paradigm. Computers in Human Behavior, 70, 544-555.
• Martinez, E., Montaner, T. (2008). Characterisation of Spanish store brand consumers. International Journal of Retail and Distribution Management, 36(6), 477-487.
• Maxwell, S. (1995). What makes a price increase seem`fair'?. Pricing Strategy and Practice, 3(4), 21-17.
• Mehrabian, A., Russell, J. A. (1974). An Approach to Environmental Psychology. Massachusetts: MIT Press Cambridge.
• Milliyet (2020). Çok Getir’di, iyi kazandı! [online], Milliyet, https://www.milliyet.com.tr/ekonomi/cok-getirdi-iyi-kazandi-6215280 [Date Accessed: April 20, 2021].
• Milliyet (2021). Getir'e dev yatırım [online], Milliyet, https://www.milliyet.com.tr/ekonomi/getire-dev-yatirim-6466069. [Date Accessed: April 15, 2021].
• Nie, B., Zhao, F., Yu, J. (2010). The impact of the financial crisis on consumer behavior and the implications of retail revolution. Marketing Science Innovations and Economic Development: Proceedings of 2010 Summit International Marketing Science and Management Technology Conference, 487-493.
• Nierynck, R. (2020). Quick commerce: pioneering the next generation of delivery [online], Delivery Hero, https://www.deliveryhero.com/blog/quick-commerce/ [Date Accessed: April 29, 2021].
• Ou, W. M., Abratt, R., Dion, P. (2006). The influence of retailer reputation on store patronage. Journal of Retailing and Consumer Services, 13(3), 221-230.
• Palmer, A. (2020). Amazon warehouse workers plan national coronavirus protest [online], CNBC, https://www.cnbc.com/2020/04/20/amazonwarehouse-workers-plan-national-coronavirus-protest.html [Date Accessed: February 10, 2021].
• Pantano, E., Pizzi, G., Scarpi, D., Dennis, C. (2020). Competing during a pandemic? retailers’ ups and downs during the COVID-19 outbreak. Journal of Business Research, 116, 209-213.
• Park, M., Lennon, S. J. (2009). Brand name and promotion in online shopping contexts. Journal of Fashion Marketing and Management, 13(2), 149- 160.
• Pelet, J.-E., Lecat, B., Khan, J., Rundle-Thiele, S., Lee, L.W., Ellis, D., Wolf, M.M., Kavoura, A., Katsoni, V., Wegmann, A.L. (2018). Winery website loyalty: the role of sales promotion and service attributes. International Journal of Wine Business Research, 30(2), 138-152.
• Pigors, M., Rockenbach, B. (2016). Consumer social responsibility. Management Science, 62(11), 3123-3137.
• Sainato, M. (2020). Strikes erupt as US essential workers demand protection amid pandemic [online], The Guardian, https://www.theguardian.com/world/2020/may/19/strikes-erupt-us-essential-workers-demand-better-protection-amid-pandemic [Date Accessed: February 4, 2021].
• Scheidler, S., Edinger-Schons, L. M. (2020). Partners in crime? the impact of consumers' culpability for corporate social irresponsibility on their boycott attitude. Journal of Business Research, 109, 607-620.
• Scott, M. L., Martin, K. D., Wiener, J. L., Ellen, P. S., Burton, S. (2020). The COVID-19 pandemic at the intersection of marketing and public policy. Journal of Public Policy and Marketing, 39(3), 257-265.
• Stratton, J. P., Werner, M. J. (2013). Consumer behavior analysis of fair trade coffee: evidence from field research. The Psychological Record, 63(2), 363-374.
• Veloutsou, C., Moutinho, L. (2009). Brand relationships through brand reputation and brand tribalism. Journal of Business Research, 62(3), 314- 322.
• Villa, R., Monzón, A. (2021). Mobility restrictions and e-commerce: Holistic balance in Madrid Centre during COVID-19 lockdown. Economies, 9(2), 57, 1-19.
• Voorhees, C. M., Fombelle, P. W., Bone, S. A. (2020). Don’t forget about the frontline employee during the COVID-19 pandemic: preliminary insights and a research agenda on market shocks. Journal of Service Research, 23(4), 396–400.
• Wright, C. F., Brown, W. (2013). The effectiveness of socially sustainable sourcing mechanisms: assessing the prospects of a new form of joint regulation. Industrial Relations Journal, 44(1), 20-37.
• Wu, R., Shah, E. D., Kardes, F. R. (2020). The struggle isn't real: how need for cognitive closure moderates inferences from disfluency. Journal of Business Research, 109, 585-594.