Purchase Motives of Retail Consumers Nanostores: Evidence from Indonesia

Abstract

Many researchers have studied purchasing motives at retail hypermarkets and modern retail scales. However, it is still rarely found in micro or nano-scale retail stores though nanostores are much higher, especially in developing countries. Therefore, this study aims to analyze the factors that motivate someone to buy goods at the nanostore. The research was done using the explanatory survey method. The number of samples is 210 respondents. The data were process using confirmatory factor analysis. The research location is in a big city in Indonesia, namely Bandung City. This city is a city of tourism and trade. The results of the study prove that 12 factors determine consumer motives for shopping at nanostores. These 12 factors are grouped into three: product attributes, self-orientation, and service guarantees. Although this study was conducted on consumer nanostores, the study results contribute to marketing theory, where service assurance is an important part of consumers' purchase motives. This study shows the retailers must understand consumers' buying motives and use the results of this study to increase sales turnover. The results of this study, when used by retail entrepreneurs, are predicted to increase customer satisfaction and loyalty. Service guarantees are the main attraction for consumers to shop at nanostores and this is a new thing in the concept of purchasing motives. For the future, it is recommended to continue the study of purchase motives in modern countries. The concept of service guarantee needs to be researched to find out whether service guarantee can increase the loyalty of large, medium, and nanostore retail consumers.