A study conducted by the University of Adelaide has identified what factors drive some consumers to favour small businesses over large retailers.
The findings of the study showed that consumer segments are more attracted to smaller businesses than larger retailers. Amongst the reasons why, consumers listed better shopping experiences as the main driver for their preference. The quintessential small business shopping experience, as identified by participants in the study, include high-levels of customer service in which staff were able to clearly communicate an in-depth product knowledge – essentials bigger retail stores seemingly neglected. The specialisation of products and the ability to purchase ‘rare’ items (not available for purchase elsewhere) is also a strong factor in consumers leaning towards small businesses.
The results of this study can help inform small retailers on how to approach their business strategy, marketing and even design to sustain their business in a highly competitive, price-driven market.