Choice of supermarkets as a marketing outlet for purchasing fresh agricultural products in urban Ghana

Abstract

Purpose This paper aims to assess the choice of supermarkets for purchasing fresh agricultural products among urban consumers in Ghana. Design/methodology/approach Likert scale was used to investigate reasons for purchasing agricultural products from supermarkets, while heteroskedastic probit was used to estimate the determinants. Beta regression was used to examine the determinants of the proportion of food expenditure on raw/unprocessed agricultural products. Findings The principal reasons for purchasing agricultural products from supermarkets are convenience, a guarantee of assorted products, high-quality products and food safety, constant supply of products, conducive shopping environment, excellent customer service and social influence. The probability of purchasing agricultural products from supermarkets is high for consumers who are either males, young, educated, high-income earners or salaried workers. Consumers residing closer to supermarkets have a greater probability of shopping for agricultural products from same. The proportion of food expenditure on unprocessed agricultural products increases with age but decreases with education and distance to local markets. Originality/value Few prior studies have investigated supermarket’s surge in developing countries and its connection with consumer food-outlet choice. Unfortunately, little is evident in the extant literature on consumers' choice of supermarkets as purchasing outlets for fresh agricultural products. Hence, this study closes the gap on consumers and fresh agricultural product purchases from supermarkets in Ghana. Results from the study will provide grounding evidence to supermarket owners to adjust their services to meet consumers’ needs and provide relevant information to evolving supermarkets or investors who may venture into the supermarket business on the attributes that influence consumers to use supermarkets as a purchasing outlet.