Traditional vs Modern Groceries from Islamic Perspective in Indonesia

Sofyan Bachmid -  Universitas Islam Negeri Datokarama Palu, Indonesia
Mokh Ulil Hidayat -  Universitas Islam Negeri Datokarama Palu, Indonesia
Noval Noval* -  Universitas Islam Negeri Datokarama Palu, Indonesia
DOI : 10.22515/shirkah.v9i1.575

Supp. File(s): Research Instrument

Despite extensive research on the competition between modern and traditional retailers, there is a lack of investigation into specific factors that influence consumer choices and directly impact sales revenue. There is a scarcity of research exploring these issues from the perspective of Islamic business. To address this gap, the study aims to examine consumer preferences in purchasing decision at Traditional and Modern groceries. This study employed a quantitative approach by distributing questionnaire to 100 customers in Palu city, Indonesia. Data analysis involved path analysis and bootstrap biased correlation. The findings highlight the significant impact of product variants, pricing strategies, and promotional efforts by modern retailers on sales revenue in traditional retail stores through purchasing decisions. However, shopping convenience did not exhibit a significant influence, indicating the need for improvement. The competition between traditional and modern retail is primarily driven by shifting consumer behavior and relatively weaker marketing strategies employed by traditional retailers. This study suggests that to maintain their market position, traditional retailers should enhance their marketing strategies by expanding product offerings, setting competitive prices, and executing effective promotional campaigns. Prioritizing the improvement of shopping convenience is crucial to meet customer expectations and preferences.

Supplement Files

Keywords : Modern Retail; Traditional Retail; Product Variants; Purchasing Decision; Sales Revenue

  1. Alfian, I., & Siregar, E. (2022). Eksistensi Ritel Tradisional di Tengah Keberadaan Ritel Modern di Kota Padangsidimpuan. Jurnal Hukum dan Ekonomi Syariah, 10(1), 15–28. https://doi.org/https://doi.org/10.32332/adzkiya.v10i01.4455
  2. Ali Khan, J., Deng, S., & Khan, M. H. A. K. (2017). The Effect of Product Variety on Inventory Turnover in Different Modes of Operation. European Scientific Journal, 13(4), 51-61. https://doi.org/10.19044/esj.2017.v13n4p51
  3. Alireza Aghighi, M. F. (2015). Analyzing the Influence of Sales Promotion on Customer Purchasing Behavior. International Journal of Economics and Management Sciences, 04(04). https://doi.org/10.4172/2162-6359.1000243
  4. Amron, A. (2018). Buying Decision in the Consumers of Automatic Motorcycle in Yogyakarta, Indonesia. Journal of Marketing Management, 6(1), 2333–6099. https://doi.org/10.15640/jmm.v6n1a8
  5. Antara, M., & Sumarniasih, M. S. (2017). Role of Tourism in Economy of Bali and Indonesia. 5(2), 34–44. https://doi.org/10.15640/jthm.v5n2a4
  6. Arslan, Y. (2019). Improving Marketing Strategies for Private Label Products. IGI Global. https://doi.org/10.4018/978-1-7998-0257-0
  7. Bogomolova, S., Dunn, S., Trinh, G., Taylor, J., & Volpe, R. J. (2015). Price promotion landscape in the US and UK: Depicting retail practice to inform future research agenda. Journal of Retailing and Consumer Services, 25, 1–11. https://doi.org/10.1016/j.jretconser.2014.08.017
  8. Bronnenberg, B. J., & Ellickson, P. B. (2015). Adolescence and the path to maturity in global retail. Journal of Economic Perspectives, 29(4), 113–134. https://doi.org/10.1257/jep.29.4.113
  9. Bulan, T. P. L., Chandra, R., & Amilia, S. (2018). Pengaruh Persepsi Konsumen terhadap Kualitas Layanan dan Minat Beli di Kota Langsa (Ritel Tradisional vs Modern). Jurnal Samudra Ekonomi dan Bisnis, 9(2), 138-149. https://doi.org/10.33059/jseb.v9i2.762
  10. Cho, J., Chun, H., & Lee, Y. (2023). Productivity dynamics in the retail trade sector: the roles of large modern retailers and small entrants. Small Business Economics, 60(1), 291–313. https://doi.org/10.1007/s11187-022-00632-7
  11. Duarte, P., Silva, S. C. e, & Ferreira, M. B. (2018). How convenient is it? Delivering online shopping convenience to enhance customer satisfaction and encourage e-WOM. Journal of Retailing and Consumer Service, 44(1), 161–169. https://doi.org/10.1016/j.jretconser.2018.06.007
  12. Effendi, I., Najib, M., & Brandoko, K. (2019). Preference Analysis And Purchasing Decision of Fruit Consumers In Generation Y (Case of Modern and Traditional Retail in Bogor). Journal of Consumer Sciences, 4(2), 61–75. https://doi.org/10.29244/jcs.4.2.61-75
  13. El-Adly, M. I., & Eid, R. (2015). Measuring the perceived value of malls in a non-Western context: the case of the UAE. International Journal of Retail & Distribution Management, 43(9), 849–869. https://doi.org/10.1108/IJRDM-04-2014-0045
  14. ElMaraghy, H., Schuh, G., Elmaraghy, W., Piller, F., Schönsleben, P., Tseng, M., & Bernard, A. (2013). Product variety management. CIRP Annals - Manufacturing Technology, 62(2), 629–652. https://doi.org/10.1016/j.cirp.2013.05.007
  15. Felycia, N. L. P. M., & Genoveva, G. (2021). Analisis Keputusan Pembelian Konsumen Di Toko Tradisional Dalam Menghadapi Pertumbuhan Ritel Modern. JIMFE (Jurnal Ilmiah Manajemen Fakultas Ekonomi), 7(2), 141–152. https://doi.org/10.34203/jimfe.v7i2.3540
  16. Ferrell, O. C., Hartline, M., & Hochstein, B. W. (2021). Marketing Strategy. Cengage Learning.
  17. Frihatni, A. A. (2020). The Existence of Modern Mini Markets amidst Traditional Retail Market. International Journal of Science, Technology & Management, 1(3), 244–250. https://doi.org/10.46729/ijstm.v1i3.57
  18. Fongkam, P. (2015). Factors Affecting Traditional Retail Stores Competitiveness in Chiang Mai, Thailand. Journal of Economics, Business and Management, 3(2), 297–301. https://doi.org/10.7763/joebm.2015.v3.198
  19. Ginting, E. V., Wulandari, E., & Yantini. (2023). Pendampingan Usaha Ritel Lokal Untuk Menghadapi Persaingan Dengan Toko Berjejaring Nasional. Jurnal Nusantara Berbakti, 1(2 SE-Articles), 31–37. https://doi.org/10.59024/jnb.v1i2.94
  20. Hai Tran, V., & Sirieix, L. (2020). Shopping and cross-shopping practices in Hanoi Vietnam: An emerging urban market context. Journal of Retailing and Consumer Services, 56, 102178. https://doi.org/10.1016/j.jretconser.2020.102178
  21. Hamilton, J. (2018). Advertising and Media Research. EDTECH.
  22. Hanaysha, J. R. (2018). An examination of the factors affecting consumer’s purchase decision in the Malaysian retail market. PSU Research Review, 2(1), 7–23. https://doi.org/10.1108/prr-08-2017-0034
  23. Hatten, T. S. (2018). Small Business Management: Creating a Sustainable Competitive Advantage. SAGE Publications.
  24. Hidayat, W., Sari, N., & Hafidz, J. (2023). Kebijakan Pembatasan Retail Modern di Daerah Dalam Perspektif Utilitarianisme. DIVERSI: Jurnal Hukum. https://doi.org/10.32503/diversi.v8i2.3375
  25. Jean, W. A., & Yazdanifard, R. (2015). The Review of how Sales Promotion Change the Consumer’s Perception and Their Purchasing Behavior of a Product The Review of how Sal es Promotion Change the Consumer’s Perception and Their Purchasing Behavior of a Product. Global Journal of Management and Business Research, 15(5), 32–37. https://journalofbusiness.org/index.php/GJMBR/article/view/1704
  26. Johns, C., Lyon, P., Stringer, R., & Umberger, W. (2017). Changing urban consumer behaviour and the role of different retail outlets in the food industry of Fiji. Asia-Pacific Development Journal, 24(1), 117–145. https://doi.org/10.18356/88463870-en
  27. Kacen, J. J., Hess, J. D., & Walker, D. (2012). Spontaneous selection: The influence of product and retailing factors on consumer impulse purchases. Journal of Retailing and Consumer Services, 19(6), 578–588. https://doi.org/10.1016/j.jretconser.2012.07.003
  28. Kaser, K., & Oelkers, D. B. (2021). Sports and Entertainment Marketing, Student Edition. Cengage Learning.
  29. Kotler, P, Keller, K. L., Brady, M., Goodman, M., & Hansen, T. (2019). Marketing Management. Pearson Education Limited.
  30. Kotler, Philip, & Amstrong, G. (2014). Principles of Marketing (15 ed.). Pearson Prentice Hall.
  31. Kotler, Philip, & Keller, K. L. (2009). Manajemen Pemasaran (13 ed.). Erlangga.
  32. Law, J. (2016). A Dictionary of Business and Management. OUP Oxford.
  33. Lee, Z. W. Y., Chan, T. K. H., & Cheung, C. M. K. (2021). Information Technology in Organisations and Societies: Multidisciplinary Perspectives from AI to Technostress. Emerald Publishing Limited.
  34. Lind, P. L., Jensen, P. V., Glümer, C., & Toft, U. (2016). The association between accessibility of local convenience stores and unhealthy diet. European Journal of Public Health, 26(4), 634–639. https://doi.org/10.1093/eurpub/ckv242
  35. Lupiyoadi, R. (2013). Manajemen Pemasaran Jasa (3 ed.). Salemba Empat.
  36. Lyons, A. C., Um, J., & Sharifi, H. (2020). Product variety, customisation and business process performance: A mixed-methods approach to understanding their relationships. International Journal of Production Economics, 221, 1–13. https://doi.org/10.1016/j.ijpe.2019.08.004
  37. Manko, B. (2022). Elevating the customer shopping experience Through digital technologies: How Wegmans Food Markets became a destination. Journal of Information Technology Teaching Cases, 20438869221134304. https://doi.org/10.1177/20438869221134302
  38. Mardiyah, R., Ismail, A. U., Khairani, D., Durachman, Y., Rosyadi, T., & Masruroh, S. U. (2021). Conceptual Framework on Halal Meat Traceability to Support Indonesian Halal Assurance System (HAS 23000) using Blockchain Technology. In 2021 9th International Conference on Cyber and IT Service Management, CITSM 2021. https://doi.org/10.1109/CITSM52892.2021.9588953
  39. Masruroh, R. (2017). The Impact of Modern Retail Minimarket towards the Continuity of Traditional Retail Businesses. IOP Conference Series: Materials Science and Engineering, 180(1), 1–6. https://doi.org/10.1088/1757-899X/180/1/012005
  40. Maulana, M. F., Muniroh, L., & Azis, A. D. (2022). Pengaruh Harga dan Promosi Ritel Modern terhadap Pendapatan Ritel Tradisional. Manager: Jurnal Ilmu Manajemen, 5(5), 1475–1483. https://doi.org/10.32832/manager.v5i5.8726
  41. Morales, G. (2018). Global Marketing Management. EDTECH.
  42. Mussol, S., Aurier, P., & de Lanauze, G. S. (2019). Developing in-store brand strategies and relational expression through sales promotions. Journal of Retailing and Consumer Services, 47(November 2018), 241–250. https://doi.org/10.1016/j.jretconser.2018.11.020
  43. O’Rourke, N., & Hatcher, L. (2013). A Step-by-Step Approach Using SAS® for Factor Analysis and Structural Equation Modeling (2 ed.). SAS Institute. Inc.
  44. Permana, R. N., & Ratnasari, I. (2023). The Influence of E-Service Quality, Convenience, and Trust on Online Purchase Decisions at Shopee Marketplace. Management Research and Behavior Journal, 3(1), 38-44. https://doi.org/10.29103/mrbj.v3i1.13436
  45. Pham, Q. T., Tran, X. P., Misra, S., Maskeliunas, R., & Damaševičius, R. (2018). Relationship between convenience, perceived value, and repurchase intention in online shopping in Vietnam. Sustainability (Switzerland), 10(1). https://doi.org/10.3390/su10010156
  46. Prakash, G., Singh, P. K., Ahmad, A., & Kumar, G. (2023). Trust, convenience and environmental concern in consumer purchase intention for organic food. Spanish Journal of Marketing-ESIC, 27(3), 367-388. https://doi.org/10.1108/SJME-09-2022-0201
  47. Pramiarsih, E. E., & Mahsyar, A. (2019). The Influence of Culture on the Shift of Household Shopping Behavior Pattern from Traditional Markets to Modern Markets in Makassar Indonesia. Proceeding Interuniversity Forum for Strengthening Academic Competency, 1(1), 342-348. https://proceedings.conference.unpas.ac.id/index.php/ifsac/article/view/184
  48. Pride, W. M., & Ferrell, O. C. (2021). Foundations of Marketing. Cengage Learning.
  49. Pujawan, I. N., Mahendrawathi, E., Kritchanchai, D., & Somboonwiwat, T. (2014). Uncertainty and schedule instability in supply chain: Insights from case studies. International Journal of Services and Operations Management, 19(4), 468–490. https://doi.org/10.1504/IJSOM.2014.065670
  50. Raharja, S. J., Muhyi, H. A., & Adiprihadi, D. (2021). Contribution of the Retail Sector Towards City Economy: Study in Bandung City, Indonesia. Review of Integrative Business and Economics Research, 10(2), 19–32.
  51. Rivani, E., Budiyanti, E., & Permana, S. H. (2020). Building Synergy Between Indonesia’s Traditional and Modern Retail Industries With E-Commerce. Kajian: Menjembatani Teori dan Persoalan Masyarakat dalam Perumusan Kebijakan, 25(2), 109–121. https://doi.org/10.22212/kajian.v25i2.3879
  52. Rizkan, M., Faiza, N., & Akbar, M. (2023). Determinants of purchase decisions among e-commerce users: The significance of trust, security, price, service quality, and risk perception. Jurnal Dinamika Manajemen Dan Bisnis, 6(1), 97-116.
  53. Rizki, M., & Sri, T. (2020). The Impact of Regional Regulation Changes on Traditional Markets in the Capital City of Indonesia. International Journal of Innovation, Creativity and Change, 13(4), 1259–1272.
  54. Seminari, N. K., Rastini, N. M., & Sulistyawati, E. (2017). The Impact of Modern Retail on Traditional Retail Traders in The Mengwi, Badung District. Udayana Journal of Social Sciences and Humanities (UJoSSH), 1(1), 35–41. https://doi.org/10.24843/UJoSSH.2017.v01.i01.p05
  55. Shou, Y., Li, Y., Park, Y. W., & Kang, M. (2017). The impact of product complexity and variety on supply chain integration. International Journal of Physical Distribution and Logistics Management, 47(4), 297–317. https://doi.org/10.1108/IJPDLM-03-2016-0080
  56. Sorkun, M. F. (2019). The impact of product variety on LSQ in e-marketplaces. International Journal of Physical Distribution and Logistics Management, 49(7), 749–766. https://doi.org/10.1108/IJPDLM-06-2018-0223
  57. Stanton, W. J. (1998). Prinsip Pemasaran (7 ed.). Erlangga.
  58. Suarantalla, R., Sudodo, Y., & Hermanto, K. (2020). Analisis Faktor yang Mempengaruhi Eksistensi Ritel Tradisional di Kecamatan Sumbawa Menggunakan Structural Equation Modeling. Performa: Media Ilmiah Teknik Industri, 19(2), 185-198. https://doi.org/10.20961/performa.19.2.44682
  59. Sugiharto, M. A., & Deniar, S. M. (2021). Retail Policy Dilemma and The Existence of Modern Retail in Indonesia and Malaysia. Jurnal Studi Sosial dan Politik, 5(1), 9–21. https://doi.org/10.19109/jssp.v5i1.7604
  60. Sururuddin, M., Lasmawan, L., & Suastika, I. N. (2022). Pola marketing pedagang tradisional di era disrupsi ritel modern. JRTI (Jurnal Riset Tindakan Indonesia), 7(4), 213–224. https://doi.org/10.29210/30032529000
  61. Teixeira, R., Duarte, A. L. de C. M., Macau, F. R., & de Oliveira, F. M. (2022). Assessing the moderating effect of brick-and-mortar store on omnichannel retailing. International Journal of Retail & Distribution Management, 50(10), 1259–1280. https://doi.org/10.1108/IJRDM-03-2021-0139
  62. Thao, D. T. P. (2020). How Convenience, Price, Store Layout and Technology Influence Buying Behaviour of Different Millennial Groups in the Convenience Store in Vietnam. VNU Journal of Science: Economics and Business, 36(2), 39–51. https://doi.org/10.25073/2588-1108/vnueab.4374
  63. Tran, T. T. N. (2023). Sustainability of Traditional Retail in an Emerging Market: A Conceptual Framework Applied to a Vietnamese Wet Market. Asia Marketing Journal, 24(4), 143–151. https://doi.org/10.53728/2765-6500.1598
  64. Triyawan, A. (2018). Analisis Pengaruh Toko Ritel Modern Terhadap Pendapatan Pedagang Tradisional dalam Perspektif Ekonomi Islam. Falah: Jurnal Ekonomi Syariah, 3(1 SE-Journal Article), 1–11. https://doi.org/10.22219/jes.v3i1.5830
  65. Tumewu, C., Massie, J. D. ., & Pandowo, M. H. . (2019). The Analysis of Before and After The Presence Of Modern Retail on Traditional Retail in Motoling. Jurnal EMBA, 7(3), 40–46. https://doi.org/10.35794/emba.v7i3.24848
  66. Umar, H. (2002). Metode Riset Bisnis: Panduan Mahasiswa Untuk Melaksanakan Riset Dilengkapi Contoh Proposal dan Hasil Riset Bidang Manajemen dan Akuntansi. PT Gramedia Pustaka Utama.
  67. Utami, C. W. (2010). Manajemen Ritel: Strategi dan Implementasi Ritel Modern (2 ed.). Salemba Empat.
  68. Villena, M. J., & Araneda, A. A. (2017). Dynamics and stability in retail competition. Mathematics and Computers in Simulation, 134, 37–53. https://doi.org/10.1016/j.matcom.2016.09.011
  69. Wahyu Irawan, A., Roni, M., & Kuncoro Putro, H. (2020). Journal of Sharia Economics. Journal of Sharia Economics, 3(1), 18–39. https://doi.org/https://doi.org/10.35896/jse.v3i1.180
  70. Wan, X., Evers, P. T., & Dresner, M. E. (2012). Too much of a good thing: The impact of product variety on operations and sales performance. Journal of Operations Management, 30(4), 316–324. https://doi.org/10.1016/j.jom.2011.12.002
  71. Wanyama, R., Gödecke, T., Chege, C. G. K., & Qaim, M. (2019). How important are supermarkets for the diets of the urban poor in Africa? Food Security, 11(6), 1339–1353. https://doi.org/10.1007/s12571-019-00974-3
  72. Widyastuti, A. N., Pujiharto, P., Tubastuvi, N., & Santoso, S. B. (2020). The Effect of Marketing Mix on Purchase Decisions. Jurnal Manajemen Bisnis, 11(2). https://doi.org/10.18196/mb.11295
  73. Yang, B., & Mattila, A. S. (2020). How rational thinking style affects sales promotion effectiveness. International Journal of Hospitality Management, 84, 102335. https://doi.org/10.1016/j.ijhm.2019.102335
  74. Zeqiri, J., Ramadani, V., & Aloulou, W. J. (2023). The effect of perceived convenience and perceived value on intention to repurchase in online shopping: the mediating effect of e-WOM and trust. Economic Research-Ekonomska Istraživanja, 36(3), 2153721. https://doi.org/10.1080/1331677X.2022.2153721

Shirkah: Journal of Economics and Business
Published by Faculty of Islamic Economics and Business (FEBI)
Institut Agama Islam Negeri Surakarta, Indonesia
Jln. Pandawa No. 1, Pucangan, Kartasura, Central Java, Indonesia, 57168
Phone: +62271-781516
Website: http://shirkah.or.id/new-ojs/index.php/home
Email: shirkahiainsurakarta@gmail.com

P-ISSN :2503-4235 | E-ISSN : 2503-4243

This ejournal system and it's contents licensed under
a Creative Commons Attribution-NonCommercial 4.0 International License