16 CHAPTER II THEORETICAL FOUNDATIONS 2.1 Definition of Retailer Retailing is a vital process that involves selling goods and services directly to consumers for personal use, effectively bridging the gap between manufacturers and end users (Kotler & Keller, 2016). Retailers, whether individuals or business entities, are crucial players in the economy as they provide consumers with access to a diverse array of products. By purchasing items from wholesalers or manufacturers and selling them in smaller quantities, retailers facilitate consumer choice and contribute significantly to local employment opportunities. The retail industry is characterized by various types of retailers, including department stores, supermarkets, and convenience stores, each designed to meet specific consumer needs. For instance, department stores typically offer a wide range of products across multiple categories, while supermarkets focus on food and household items. Convenience stores cater to consumers seeking quick access to essential goods. This diversity allows retailers to target different market segments effectively. Moreover, retailers operate through various formats, including traditional brick-and-mortar stores and online platforms. The rise of e-commerce has transformed retailing, enabling consumers to shop from the comfort of their homes. Many retailers now adopt an omnichannel approach, integrating both physical and digital shopping experiences to meet evolving consumer preferences. This adaptability is essential in a rapidly changing market landscape where consumer expectations are continuously shifting (Levy et al., 2019). 2.1.1 Supermarket Supermarkets itself are defined as large retail stores that provide a wide variety of food, beverages, and household products under one roof, designed to serve customers through self- service methods. They are often categorized by offering an extensive selection of goods in different departments, including fresh produce, dairy, and packaged foods (Chowdhury, Gulati, & Gumbira-Sa'id, 2005; Iswati, Astuty, & Yolanda, 2022; Akyüz, 2018). These stores are key players in the retail landscape, catering to the diverse needs of consumers, particularly in urban settings where convenience and accessibility are valued. Supermarkets typically operate on a large scale, aiming to offer a wide range of products to attract a broad customer base (Manuere, 2023). 17 In general, supermarkets serve as essential hubs for consumer goods, providing a mix of products that allows shoppers to make quick, convenient, and often price-driven purchasing decisions (Mahlangu & Makhitha, 2019). In the context of Indonesian supermarkets, these retailers have experienced significant growth due to urbanization and an expanding middle class, making them crucial for understanding consumer behavior in the country (Iswati et al., 2022). The supermarket environment in Indonesia, characterized by frequent sales promotions, direct selling strategies, and product bundling, plays a vital role in influencing impulsive buying behavior. Sales promotions, in particular, are designed to trigger immediate purchase decisions by creating urgency, while direct selling and product bundling strategies enhance the overall shopping experience, further encouraging impulsive purchases (Pradhan, 2018; Dinesha, 2022). These strategies are often employed in Indonesian supermarkets to capitalize on consumers' tendency to make spontaneous purchases, significantly impacting overall retail performance. 2.1.1.1 Types of Supermarkets Supermarkets can be categorized by ownership structure, store format, and product offerings, enabling them to address diverse consumer needs. Conventional supermarkets are large establishments offering a broad range of groceries, including fresh produce, meats, and packaged goods, aiming to provide variety at competitive prices. Limited-assortment supermarkets, in contrast, prioritize cost efficiency by offering a restricted selection of private-label and essential products to reduce inventory and simplify choices. Supercenters combine the supermarket concept with a full-line discount store, offering groceries alongside general merchandise for one- stop shopping convenience. Warehouse clubs operate on a membership model, selling products in bulk at discounted prices with minimal additional services. The rise of e-commerce has popularized online grocery retailers, which allow customers to shop online with delivery or pickup options. Specialty supermarkets focus on niche markets, offering organic, gourmet, or ethnic foods. Independent supermarkets, typically small and community-oriented, feature unique products and personalized service. Chain supermarkets, part of larger groups under a unified brand, offer standardized operations and loyalty programs. Franchised supermarkets, operated by individuals under franchising agreements, leverage the brand and business model of larger companies. Lastly, consumer cooperatives emphasize local products and community needs, reflecting the dynamic nature of the retail industry. Each supermarket type employs unique marketing strategies to engage their target audience. 18 Conventional supermarkets focus on loyalty programs, promotions, and an organized in-store experience. Limited-assortment supermarkets emphasize affordability through private-label products and a no-frills approach. Supercenters highlight the convenience of one-stop shopping by cross-selling groceries and general merchandise while integrating digital services like online ordering. Warehouse clubs rely on membership programs, bulk pricing, and minimal advertising costs to attract high-volume shoppers. Online grocery retailers focus on personalized marketing, mobile-friendly platforms, and subscription models to meet the growing demand for convenience. Specialty supermarkets differentiate themselves through niche marketing and community engagement, while independent supermarkets rely on localized strategies and partnerships with local suppliers. Chain supermarkets leverage economies of scale with standardized campaigns and efficient supply chains. Franchised supermarkets combine the resources of a parent company with regional adaptations. Consumer cooperatives focus on sustainability, eco-friendly practices, and member engagement. These strategies reflect the adaptability and consumer focus of the retail industry (Berman et al., 2018, Levy et al., 2019). 2.2 Marketing Mix The marketing mix is a fundamental concept in marketing strategy that encompasses various elements to effectively reach and satisfy consumers. Traditionally, it is represented by the 4Ps: Product, Price, Place, and Promotion. where each component plays a crucial role in shaping a company's marketing efforts.