THE EFFECTS OF OUTSHOPPING ON A SMALL RURAL COMMUNITY: THE IMPORTANCE OF RELATIONSHIPS

Cathy Ashley-Cotleur · Carol J. Gaumer

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Consumer Retail Behavior Studies Consumer Behavior and Marketing Influence Consumer Market Behavior and Pricing

Abstract

Outshopping, also known as market gravitation or market leakage, is the practice of going outside the local community to buy goods. Outshopping is a phenomenon that particularly affects retailers in small, rural communities. Reasons given for such behavior include better prices, more stores and broader product depth. This paper looks at the shopping habits of two distinctly different groups of buyers in a rural county in western Maryland to determine the extent and reasons for outshopping behavior. The study found that prices and convenience were the most important reasons community residents had for buying certain products. However, local business owners were more influenced by their desire to purchase from local merchants when they made personal buying decisions. This suggests that relationships, among shoppers and shop owners, built and sustained in a community, influence consumer buying behavior.

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References

1931The law of retail gravitation 2006Consumer ethnocentrism: an integrative review of its antecedents and consequences 2007Ethnocentric beliefs and country‐of‐origin (COO) effect 2007Modeling service encounters and customer experiential value in retailing 1976Identifying Interurban Shoppers: Multiproduct Purchase Patterns and Segmentation Profiles 2006Consumer Ethnocentrism Offline and Online: The Mediating Role of Marketing Efforts and Personality Traits in the United States, South Korea, and India 1972Intermarket Patronage: A Psychographic Study of Consumer Outshoppers 1984Understanding the Outshopper

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