Small retail businesses in rural areas must compete for their limited consumer base with nearby giant discount and chain stores. Many rural community residents are enticed to shop beyond the local marketplace, creating a leakage of tax income from the community and reducing net sales for small retail business managers (Papadopoulos 1980; Stone 1995). Outshopping, coupled with consequences arising from agricultural adjustments and population outmigration, has been found to greatly reduce the survival rate of small independent retailers in several rural communities in the U.S. (Aryes, Leistritz, and Stone 1992; Bryant 1989) and in several rural communities located in the United Kingdom, Finland, Norway, Sweden, and Greece (Jussila, Lotvonen, and Tykkylainen 1992; Monk and Hodge 1995; Simmons and Kalantaridis 1996). Retail concerns in several rural Midwestern U.S. communities have decreased from 60 percent of all business establishments to 33 percent (Strange 1996).
Although small business managers in rural communities are often dependent on a changing economic environment, they can also be responsive to these changes as active decision-takers. Rural retail businesses faced with declining numbers of customers can employ various adaptive strategies. For example, two strategies have been successfully employed by rural retail shop owners in Lapland, Finland (Jussila, Lotvonen, and Tykkylainen 1992). The efficiency strategy concentrates on reducing overhead or production costs by focusing on a specific segment of the customer market. As a second solution, the small business manager pays more attention to market differentiation and attempts a market increase by combining new activities or service offerings.
Although several studies have attempted to assess the causes of rural consumer outshopping behavior, little is understood about those consumers who inshop - meaning those who choose to shop with local businesses (Anderson and Kaminsky 1985; LaForge, Reese, and Stanton 1984; Miller and Kean, 1997a; Samli, Riecken, and Yavas 1983). For small retail businesses that are located in rural areas, identifying potential consumers from a limited population base (efficiency strategy) and accurately interpreting the likelihood of their adopting specific products or services offered to meet their needs (entrepreneurial strategy) require an understanding of the rural community and its marketplace.
Generally, one of the first steps in developing a focused or target market strategy of efficiency is to analyze the characteristics of potential customers. Through analyses of demographic and psychographic information, consumers in a market can be segmented by identifiable characteristics differentiating them from others in the market area (Solomon 1994). Demographic information describes characteristics of the population such as age or income, whereas psychographic information frequently pertains to consumers' lifestyle or activities, in addition to their personality as expressed by their interests and opinions (Mowen 1990). Additional psychological aspects of the consumer are also important. Knowing something about rural residents' attitudes, motivations, and behavior with regard to their interests in and opinions of the community and its marketplace will further the rural retailer's ability to efficiently target viable segments in the rural community (Jarratt and Polonsky 1993).
Demographic analyses of age trends have identified consumers in both the baby boom and elderly age segments as critically important to marketers in several regions of the U.S. (Mowen 1990). As the first consumers of the baby boom generation (born between 1946 and 1964) pass their fiftieth birthday, their consumption behavior will continue to affect marketing strategies for many years to come. The "senior citizens" or elderly market is traditionally defined as consumers aged 65 years and older (Lambert 1979; Tongren 1988). Lengthening life spans and the celebrating of 75 million baby boomers' 65th birthday beginning in the year 2011 will result in a great increase in the elderly population. Businesses that understand the older segment of the market will have the advantage in planning successful marketing strategies and expanding their market share.
In numerous parts of the world, there is an increasing number of elderly people residing in rural communities (Jussila, Lotvonen, and Tykkylainen 1992; Smailes 1997). Present calculations indicate that one in four Americans over age 65 currently lives in a rural area (Schwenk 1994). In analyzing America's rural communities early in this decade, Clarke and Miller (1990) found 14 to 20 percent of the population to be 65 and older in rural states such as Iowa, Missouri, Nebraska, and Kansas. Recent figures place Iowa as fifth highest in the nation with 15.2 percent of the state's population aged 65 and older (U.S. Bureau of Census 1996). In many rural Midwestern communities, older residents are a viable consumer group. Recent studies have found that older residents of small communities spend a significantly larger percentage of their resources in the local community market than do younger community members. Despite this, there is little understanding of older rural consumers' psychographics for planning a stronger product mix and/or service offerings (Henderson and Hines 1990; O'Brien, Hassinger, and Dershem 1994; Miller and Kean 1995).
Sociologists have long contended that consumers are social actors and that consumer behavior is affected by social relations. This phenomenon, called "embeddedness" by Granovetter (1990), is present when behaviors are so bound by ongoing social relations that neither can be considered independent of the other. In theory, consumers and retailers, as economic actors in the rural marketplace, are constrained by ongoing social relationships and ties. As members of the same community, members of both groups base many of their decisions on what will benefit their family, friends, and acquaintances in the community (Colwell and Green 1994). Likewise, ties of friendship and family have been found to reduce perceived risk in uncertain rural market conditions (Simmons and Kalantaridis 1996).
Community, by definition, includes often complex transactions among diverse types of people who share the same physical environment (Strange 1996). These transactions can build or break down the social forces that are necessary in building ties to the community. Several studies have examined the rural community environment with measures of community attachment (Goudy 1990; Kasarda and Janowitz 1974). Level of attachment to the community, as measured by Stinner et al. (1990), involves an assessment of community sentiment, belongingness, local friends and acquaintances, organizational membership, and involvement in community activities. Miller (1997) found that rural consumers with strong attachment to their community were more likely to shop with local retailers than less attached residents.
The purpose of this study was to identify potential consumers from a limited population base and to suggest business strategies based on efficiency and entrepreneurship for small retail businesses located in rural areas. In doing so, we concentrated upon grouping and describing older rural consumers. This research began by grouping the sample population into homogeneous categories based on community attachment variables, and followed with an examination of some demographic and psychographic attributes of these groups for identifying potential customer segments in the rural market. Research on community members aged 50 and older has implications for small, locally-owned retail establishments which endeavor to calibrate their business management strategies in a rural environment. Though there are many definitions for "rural community," this study defines it as having a population of 10,000 or less, a location in a non-standard metropolitan county, and an agriculture-based economy.
Two product categories - apparel and home furnishings - were selected for rural consumers to consider in terms of their shopping attitudes, interests, and behavior. Apparel and home furnishing products are readily available from local small-sized retailers as well as from larger discounts and chain stores surrounding the rural area and beyond. Apparel items include clothing, shoes, jewelry, and accessories for all family members. Home furnishing products include small appliances, lamps, clocks, bedding, window coverings, and accessories for the home. Rural residents are known to spend heavily on home furnishings (American Demographics 1992). Apparel and home furnishings are two product categories that were cited in Papadopoulos' (1980) review of outshopping as frequently purchased beyond the local marketplace. More recent analyses of outshopping by product categories offer mixed reviews for home furnishing and apparel products (Miller and Kean 1997b; Samli, Riecken, and Yavas 1983; Stone 1989).
There have been several studies concerning the patronage behavior of the mature consumer, aged 65 and older. Tongren's (1988) extensive review of research on older consumers' behavior in the marketplace supported the overall generalization that older consumers are less conscious of price than consumers in other age groups, and that older consumers are frequent purchasers of personal apparel, spending only slightly less than younger consumers. Kang and Ridgway (1996) reported that consumer market interactions provided important social support for elderly consumers. Lumpkin and Greenberg (1982) found that the elderly preferred to shop at specialty stores, whereas those younger than age 65 tended to frequent the discount stores. Lumpkin's (1985) research on the elderly found that those who were more actively involved in the community, and in general more socially active, enjoyed shopping locally and that they shopped locally more because of the merchants' reputation than because of their pricing or brand offerings. Thus, understanding the individual's level of social involvement or attachment to the particular community may explain much about his or her consumer behavior. The findings from Lumpkin and Greenberg's (1982) and Lumpkin's (1985) studies, however, were based on responses from rural and urban elderly apparel consumers collected in 1980; a more current picture of the rural consumer age 50 and older is needed.
Studies often fail to take into account that consumer behavior is frequently an activity that takes place within the context of a community's structure. Older consumers are often long-time members of the community with many social and business relationships influencing their patronage behavior (Miller and Kean 1995). Etzioni's (1988) economic paradigm suggests that an economy is a subsystem of its society. Similarly, Granovetter (1990) asserted that economic activities are largely embedded in the social networks of a community. These perspectives assume that individuals have some involvement in their community, both as citizens and as consumers. To date, the relationship between community attachment and the purchasing behavior of older residents remains relatively untested. For this study, Etzioni (1988) and Granovetter (1990) provided the theoretical guidance for selection of variables used to produce the rural consumer groupings. The first hypothesis proposed that community attachment variables could be used to group older rural residents into significantly different categories.
[H.sub.1]: Older rural residents can be grouped on the basis of community attachment levels. The groups will significantly vary in four community attachment variables: (1) informal involvement (with friends and acquaintances); (2) formal involvement (in community organizations and activities); (3) belongingness (feeling of closeness to people in the community); and (4) sentiment (satisfaction with the community).
England and Albrecht (1984) examined the relationship of demographic variables and community attachment, finding that persons with higher social and economic status had higher levels of participation in their community. Education and income have been used as indicators of socioeconomic status in the measurement of community attachment (Stinner et al. 1990). Age, as a measure of the life-cycle stage, has also played a significant role in the individual's level of community involvement (England and Albrecht 1984; Goudy 1990). England and Albrecht noted that older residents were the more involved age group; on the other hand, Goudy's findings suggested that the older group was less involved. Kasarda and Janowitz (1974) and Goudy (1990) reported that length of residence was closely associated with the extent to which individuals felt attached to their communities. In contrast, Stinner et al. (1990) indicated that educational attainment was a more influential variable than duration or years of residence. Though previous findings frequently conflict, there is supporting evidence that specific demographic variables do relate to level of community attachment.
[H.sub.2]: There will be significant differences among community attachment groupings of older rural residents for the demographic variables: age, education, income, and years of residency.
To better understand older consumers and their behavior in the rural marketplace, it was considered important to evaluate several psychological variables in terms of their explanatory ability. Human behavior is influenced by varying levels of moral, social, and economic motivations. Motivations, according to Engel (1986), are the needs, wishes, or drives that carry an individual into action. The variable "moral motivation" is defined as the degree to which the individual needs to make self-administered or intrinsically valued decisions. "Social motivation" is a variable describing an externally-focused drive to gain the approval of others. The variable "economic motivation" is based on a need to acquire money or items that have a monetary value. Although all three motivations have been extensively studied (Allport 1961; Deci and Ryan 1991; Freud 1920; Homans 1958; Maslow 1970), little research has examined the three motivations simultaneously, with the exception of Miller and Kean's (1995) work. Research by Miller and Kean suggests that rural residents between the ages of 45 and 64 were motivated more by moral drives than by social or economic drives, but residents age 65 and older were more driven by economic considerations than by moral or social ones.
Previously discussed was Granovetter's (1990) assertion that economic activities are largely embedded in the social networks of a community. Involved in the process of daily living and consuming is the exchange of tangible and intangible commodities, with all parties attempting to receive a proportional return in the partnership (Baggozi 1975). Additionally, for these types of exchange, there exists a norm of reciprocity requiring that some form of goodness should be given for goodness received (Becker 1986). Reciprocity is deeply ingrained in our morality and is meant to balance exchanges. Reciprocity has been qualitatively measured in sociological and anthropological studies (Gouldner 1960; Pryor and Graburn 1980), but few quantitative studies have been done. In this study, then, "interpersonal reciprocity" is a variable describing the degree of satisfaction with reciprocal exchange between community members.
Local merchants, defined as business owners who operate a small establishment within the rural community marketplace and who frequently live in the rural community, are often also active community members. Some older individuals may find that local merchants are more interested than other merchants in providing personal assistance and service as a form of institutional reciprocal exchange. In this study, the variable "institutional reciprocity" was used to measure the degree of satisfaction with reciprocal exchange between community members and local retailers.
Discovering what older consumers consider important and what they expect of retailers and their products/services could improve our understanding of what induces them to shop locally instead of traveling to larger cities or regional malls resulting in retail sales leakage (Carusone and Moscove 1985). It is unclear whether older rural consumers' loyalty to local retailers is due to social ties with retailers, in the form of institutional reciprocity, or to the retailers' individualized services and products (or both). Thus, in this study, levels of satisfaction with local retailers and satisfaction with their product/service offerings were separately measured.
It is difficult to measure shopping and purchasing behavior accurately. Accordingly, in this investigation the consumers' self-reports of both their past level of shopping with local retailers (inshopping behavior) and of their future intention to shop with local retailers (inshopping intentions) were used to ascertain the degree of local shopping. Fishbein's (1980) theory of reasoned action rests on the central premise that the intention to perform an activity precedes the actual behavior. The following hypothesis, derived from relevant past research implications, guided our attempt to understand older consumer segments of the rural community market:
[H.sub.3]: There will be significant differences among community attachment groupings (sentiment, belongingness, formal involvement, and informal involvement) of older rural residents for psychographic variables: moral motivation; social motivation; economic motivation; interpersonal reciprocity; institutional reciprocity; satisfaction with local retailers; satisfaction with local products; inshopping behavior; and inshopping intentions.
Measurement of Variables
Community Attachment. Four community attachment measures were identified in the rural sociology literature: sentiment, belongingnes, formal involvement, and informal involvement (Goudy, 1990; O'Brien, Hassinger, and Dershem, 1994; Stinner et al. 1990). Items from the existing scales were a combination of five-point Likert-type and open-ended questions. The number of items and the scale reliability for each of the scale variables are given in Table 1.
To ascertain that the four scales were measuring different dimensions of community attachment, a principal component analysis with varimax rotation was conducted. To determine the cut-off point, the "elbow rule" was used whereby plotted eigenvalues on a scree test displayed a bend or directional change (Churchill 1991). The four-factor solution indicated there were four separate dimensions of community attachment, which were usable in the calculation of similarity between cases for market segmentation. Factor 1 (eigenvalue = 4.73) represented the dimension of community sentiment - an evaluation of satisfaction with the community. Factor 2 (eigenvalue = 1.67) represented belongingness - the emotional feeling of being a part of the community or close to people in the community. Factor 3 (eigenvalue = 1.20) represented formal involvement in community organizations and activities, and Factor 4 (eigenvalue = 0.99) represented informal involvement with friends and acquaintances.
Demographics. Open-ended questions were used to capture the respondents' age, number of years of education, and length of residency in the community. Twelve annual income categories were used to measure respondents' income level.
Psychographics. In total, nine scales were used to measure older consumers' attitudes and shopping behavior. Three separate measures were developed to measure moral, social, and economic motivations based on previous scales developed by Miller and Kean (1997a), Moschis and Churchill (1978), and Severly (1975). Each item was rated on a five-point scale ranging from "strongly disagree" (1) to "strongly agree" (5).
Reciprocity is thought to be operating in all societies, and yet there has been little attempt to measure its existence empirically. Building on items from an earlier reciprocity scale developed by Miller and Kean (1997a), two different measures of satisfaction with reciprocity were further developed. "Interpersonal reciprocity" measured the level of satisfaction with the give-and-take among members of the community in nonmarket exchange, whereas "institutional reciprocity" measured the marketplace exchange between consumers and local retailers. For each item, respondents were asked to rate themselves on a five-point scale ranging from "very dissatisfied" (1) to "very satisfied" (5).
Building on Samli, Riecken, and Yavas' (1983) Likert-type scale designed to measure consumers' satisfaction with local retail facilities, the present study used nine items to address the consumer's level of satisfaction with the retailer's qualities and seven items to address the level of satisfaction with the [TABULAR DATA FOR TABLE 1 OMITTED] retailer's product/service offerings (see Table 1). To understand more about apparel and home furnishing shopping behavior and to direct responses to a limited number of products, consumers were asked to keep apparel and home furnishing items in mind when responding to survey questions involving shopping and local retail facilities.
Consumers' reported level of inshopping activity for apparel and home furnishing items was measured by two open-ended questions that asked consumers to list the percentage of the apparel and home furnishing shopping they had done locally as an assessment of the consumer's past shopping behavior. In addition, consumers were asked about their intention to shop with local merchants as an assessment of future shopping behavior. Consumers' intention to inshop was measured with three Likert-type items that were developed by Miller and Kean (1997b). Each item was rated on a five-point scale ranging from strongly disagree (1) to strongly agree (5).
Survey Instrument and Procedure. The methodological approach to this study was survey research using mailed questionnaires. Before mailing, the instrument was pretested on 91 adult consumers who described their hometown population size as less than 10,000. Factor loadings and inter-item correlations were then examined for each scale item, and poor performing items were discarded to reduce the survey length and to improve reliability.
Letters explaining the study were sent with each questionnaire requesting the adult member of each household who did the majority of the consumer purchasing to answer the questionnaire. This letter also included an incentive to return the questionnaire (a free Cooperative Extension publication related to apparel, home furnishings, or general consumer issues). Individuals were contacted during the height of the 1995 holiday shopping season by three separate mailings in a modified version of Dillman's (1985) methodology.
Sample. Criteria for inclusion in the sample were individuals aged 50 and older who lived in three selected Iowa communities. These Iowa towns, meeting the previously described definition for "rural," had similar population sizes but were located in different areas of the state. It was considered important to control population size so that opportunities related to community activities and shopping would not vary due to the community's size (Darling and Tubene 1995). A random list of 1,000 households in each community was purchased from a mailing service. The subsampling of responses from rural residents aged 50 years and older was extracted from a larger study of the rural community population. This method of sampling was selected due to the proportionately high number of older persons living in rural Iowa communities.
Response. Of the initial 3,000 surveys mailed, 1,282 (44 percent) were returned with 65 percent or more of the survey completed. From the total responses, 630 were completed by individuals aged 50 and older (21 percent of surveys mailed). The overall mean age of this sample was 66 years old (see Table 2).
Analyses and Results
In testing Hypothesis 1, cluster analysis was conducted to determine whether the sample could be divided into clusters based on community attachment items. Ward's minimum variance method of cluster analysis was selected to make the most of minimum variance within clusters (Ward 1963), and because it has often been used in market segmentation research (Punj and Stewart 1983). In determining the number of clusters, a subjective procedure was used whereby the values of the fusion coefficients were examined for a significant jump in values. Following the suggestions of Aldenderfer and Blashfield (1984), the number of the clusters prior to the jump in values was considered the most probable solution. A second criterion was that there should be sufficient cases in each cluster to provide reasonable power for further analyses. Hypothesis i was supported with the selection of a three-cluster solution (see Table 3).
To validate the clusters, significance tests were conducted on the community attachment variables used in creation of the clusters. Differences among the clusters were determined by one-way analysis of variance using Scheffe's test of significant differences as a post hoc measure (see Table 4). Tests indicated further support for Hypothesis 1 in that significant differences were found among all clusters on the four community attachment variables. Scheffe's tests found that clusters 1 and 2 were significantly higher than cluster 3 for informal involvement, belongingness, and sentiment. Cluster 1 was significantly higher than clusters 2 and 3 for formal involvement. Residents in cluster 2 rated community sentiment higher than residents in either of the other two clusters. On the basis of mean scores and significant differences, the clusters were identified as: (1) High Informal/High Formal Involvement (HIHF); (2) High Informal/Low Formal Involvement (HILF); and (3) Low Informal/Low Formal Involvement (LILF).
Demographic Description of Clusters
The second hypothesis proposed that there would be significant differences among community attachment groups of older rural residents in terms of age, education, income, and their years of residency in the community. One-way analysis of variance with Scheffe's tests of significant differences was used in testing Hypothesis 2. Results provide some support for the second hypothesis in that there were significant differences among all three clusters on the basis of age, income, and years of residency, but not education (see Table 5). Mean scores for age, income, and years of residency for clusters 1 and 2 were significantly higher than for cluster 3. Means scores for clusters 1 and 2 were similar, with only income significantly higher in cluster 1. In summary, rural residents in cluster 1 were older, had higher levels of income, and had resided in the community longer than residents in clusters 2 and 3.
Table 2 Summary Demographics of the Rural Elderly (n = 630) Demographic Age 50-64 Age 65+ Total Characteristics Frequency Frequency Frequency(a) Sex Male 126 115 241 Female 161 225 386 Education (years) Less than 13 180 244 424 14-18 98 87 185 19 and over 9 12 21 Family Income ($) Less than 5,000 1 2 3 5,000- 9,999 12 33 45 10,000-14,999 18 40 58 15,000-19,999 23 53 76 20,000-24,999 25 36 61 25,000-29,999 24 17 41 30,000-39,999 57 44 101 40,000-49,999 38 21 59 50,000-74,999 41 22 63 75,000-99,999 9 7 16 Greater than 100,000 7 9 16 Marital Status Married 205 186 391 Widowed 30 109 139 Divorced 38 37 75 Single, never married 9 10 19 Separated 4 1 5 Religion Protestant 205 282 487 Catholic 46 38 84 Others 22 13 35 No religious affiliation 13 9 22 Lived in the Community (years) 1-15 32 33 65 16-30 86 49 135 31-49 85 85 170 50-85 75 160 235 a Frequencies may not total 630 because of missing values due to incomplete responses. Table 3 Results of Cluster Analysis (n = 609) Cluster Number of Cases Percent (1) High Informal/High Formal (HIHF) 231 37.9 (2) High Informal/Low Formal (HILF) 141 23.2 (3) Low Informal/Low Formal (LILF) 237 38.9
[TABULAR DATA FOR TABLE 4 OMITTED]
Psychographic Description of Clusters
With clusters established and, to a limited degree, demographically defined, the third hypothesis predicted there would be significant psychographic differences among clusters in terms of rural residents' attitudes and behaviors in the community and its marketplace. The following variables were assessed for their ability to explain the clusters: moral, social, and economic motivation; interpersonal and institutional reciprocity; satisfaction with local retailers and their products', and inshopping behavior and intentions. Results of the one- way analysis of variance with Scheffe's tests of significant differences found support for eight of the nine proposed market segmentation variables, indicating some support for Hypothesis 3 (see Table 6). Economic motivation did not significantly explain differences among the clusters; however, social and moral motivation scores were significantly different in that moral motivation ranked highest in cluster 1 and social motivation ranked highest in cluster 2. Residents in the second and first clusters rated their institutional and interpersonal reciprocity, level of satisfaction with local retailers and their products, inshopping behavior, and [TABULAR DATA FOR TABLE 5 OMITTED] [TABULAR DATA FOR TABLE 6 OMITTED] inshopping intentions significantly higher than residents in the third cluster.
Discussion and Implications
The purpose of this study was to identify potential consumers from a limited population base and to suggest efficiency and entrepreneurship business strategies for small retail businesses in rural areas, This investigation surveyed individuals ranging in age from 50 to 85 years about their attitudes and behaviors in rural Iowa communities and their marketplace. We found that community attachment variables successfully provided three classifications of these older rural residents: (1) those who were highly involved with informal and formal community activities; (2) those who were highly involved with informal activities but not as involved in the more formal community organizations; and (3) those who were not very involved in either informal or formal community activities. In assessing these three groups on the basis of their demographic characteristics, we found the average age, length of residency in the community, and income of the members of the first cluster to be higher than those of the third cluster. Analysis of averages suggested that the second group had lived longer in the community than the third group, but the third group had a higher average educational level.
A comparison of the three groups in terms of psychographic variables suggests that consumers clustered into the first and the second groups, with high informal scores, should be the focus of rural retailers' marketing strategies. These consumers expressed higher levels of satisfaction with local apparel and home furnishing retailers and their products or services, and they were highly satisfied with the level of reciprocity between community members and local retailers.
These research findings support Etzioni's (1988) assertion that an economy is a subsystem of its society. There are also implications for Granovetter's (1990) theory of embeddness, in that social relations, developed from involvement in community activities, form the basis for economic activity in the local marketplace. Miller's (1997) finding that rural consumers with higher levels of attachment to their community are more likely to inshop is further supported by this study. It should also be noted that many of the scales used in this study were in early stages of their development. Though previously tested with a similar sample population (Stinner et al. 1990), the involvement scales still warrant further refinement.
In general, the research indicates that older community members who are actively involved in their community are strong supporters of the local independent retailer. Although this investigation was limited to older residents of rural communities in one Midwestern state, the findings support a well-accepted theory of activity and aging. The central premise of the activity theory is that when people maintain the activities and attitudes of middle age for as long as possible and then find replacement activities as they age, they are said to be different than their inactive counterparts (Atchley 1993; Palmore 1968). In this study, we found that differences in levels of social involvement explained a great deal about older rural consumers and their marketplace activities.
This study has implications for small independent retailers who live and conduct business in the rural community. More attention must be paid to the active older consumer in developing efficiency strategy options. This strategy works to reduce the retailers' operational costs through deliberate focusing on defined areas for effective use of capital. The retailer is advised to become involved in community activities and organizations to learn more about local consumers aged 50 and older. By interacting with these residents, interpersonal and institutional reciprocity is established and inshopping behavior may also be thereby enhanced. Involvement in social activities does appear to alter consumer behavior and should be appraised for how heightened interaction increases older consumer patronage with local retail stores. Learning more about the needs of older consumers could provide ideas for developing a directed advertising campaign or pricing strategy.
A second suggested step in the rural small retailer's business management plan is to increase market share through entrepreneurial strategy. Many rural shops in Finland, Norway, and Sweden have included sidelines (Jussila, Lotvonen, and Tykkylainen 1992). By combining retailing with other personal services, these multi-service shops are seen as a solution to the difficulties of maintaining rural services. Possibilities that have emerged include taxi and postal services, coffee shops, and delivery services. Of those who use taxi services in rural areas of the United Kingdom, 50 percent are elderly (Banister and Norton 1988). Perhaps the small-sized retailer would benefit from offering, perhaps with other local businesses, a commercial transportation service to and from the community's central business district. Results suggest that a greater understanding of rural social exchange networks, the rural residents' ability to maximize or alter the existing social system, and the conditions under which they transfer social ties to satisfactory marketplace relationships is critical to rural retail business survival.
Aldenderfer, Mark S., and Roger K. Blashfield (1984). Cluster Analysis. Series Number 44: Quantitative Applications in the Social Sciences. Newbury Park, Calif.: Sage Publications.
Allport, Gordon W. (1961). Pattern and Growth in Personality. New York: Hold, Rinehart and Winston.
American Demographics (1992). "Rural Readers with Money to Spare," 14 (8), 18-20.
Anderson, Carol, and Mark Kaminski (1985). "The Outshopper Problem: A Group Approach for Small Business Retailers," American Journal of Small Business 9 (4), 34-45.
Aryes, Janet S., F. Larry Leistritz, and Kenneth E. Stone (1992). Revitalizing the Retail Trade Sector in Rural Communities: Lessons from Three Midwestern States. RRD 162, North Central Regional Center for Rural Development. Ames, Iowa: University Publications, Iowa State University.
Atchley, Robert C. (1993). "Continuity Theory and the Evolution of Activity in Later Adulthood," in Activity and Aging. Ed. John P. Kelly. Newbury Park, Calif.: Sage Publications.
Baggozi, Richard (1975). "Marketing as Exchange," Journal of Marketing 39 (October), 32-39.
Bannister, David, and Fiona Norton (1988). "The Role of the Voluntary Sector in the Provision of Rural Services - The Case of Transport," Journal of Rural Studies 4 (1), 57-71.
Becker, Lawrence C. (1986). Reciprocity. Chicago, Ill.: University of Chicago Press.
Bryant, Christopher R. (1989). "Entrepreneurs in the Rural Environment," Journal of Rural Studies 5 (4), 337-348.
Carusone, Peter S., and Brenda J. Moscove (1985). "Special Marketing Problems of Smaller-City Retailing," Journal of the Academy of Marketing Science 13(3), 198-211.
Clarke, Leslie L., and Michael K. Miller (1990). "Health and Medical Care," in American Rural Communities. Ed. A.E. Luloff and Louis E. Swanson. Boulder, Colo.: Westview Press, 74-105.
Cowell, D. K., and Gary P. Green (1994). "Community Attachment and Spending Location: The Importance of Place in Household Consumption," Social Science Quarterly 75 (3), 637-655.
Churchill, Gilbert A. (1991). Marketing Research: Methodological Foundations. Chicago, Ill.: Dryden Press.
Darling, David L., and Stephan Tubene (1995). "Benchmarking the Population Threshold of Complete Shopping Trade Centers: A Study of Non-Metropolitan Cities in Kansas." Paper presented at the Rural Retailing and Emerging Community Issues Symposium. Snowbird, Utah, June.
Deci, Edward L., and Richard M. Ryan (1991). "A Motivational Approach to Self: Integration in Personality," in Perspectives on Motivation: Nebraska Symposium on Motivation, 1990. Ed. Richard Dienstbeir. Lincoln, Neb.: University of Nebraska Press, 237-288.
Dillman, Donald (1985). Mail and Telephone Survey. New York: John Wiley and Sons.
Engel, James (1986). Consumer Behavior: Selected Readings. Homewood, Ill.: Richard D. Irwin.
England, J. Lynn, and Stan L. Albrecht (1984). "Boomtowns and Social Disruption," Rural Sociology 49 (2), 230-46.
Etzioni, Amitai (1988). The Moral Dimension: Toward a New Economics. New York: Free Press.
Fishbein, Martin (1980). "A Theory of Reasoned Action: Some Applications and Implications," in Nebraska Symposium on Motivations 1979, 27. Ed. H. Howe. Lincoln, Neb.: University of Nebraska Press, 65-116.
Freud, Sigmund (1920). A General Introduction to Psychoanalysis. London: Bonji and Liveright.
Goudy, Willis J. (1990). "Community Attachment in a Rural Region," Rural Sociology 55 (2),178-198.
Gouldner, Alvin W. (1960). "The Norm of Reciprocity: A Preliminary Statement," The American Sociological Review 25 (2), 161-178.
Granovetter, Mark (1990). "The Old and the New Economic Sociology: A History and an Agenda," in Beyond the Marketplace. Ed. Roger Friedland and A.F. Robertson. New York: Aldine de Gruyter, 89-112.
Henderson, David A., and Fred K. Hines (1990). "Increases in Rural Income May Not Help Smalltown Retailers," Rural Development Perspectives 6, 31-36.
Homans, George C. (1958). "Social Behavior as Exchange," The American Journal of Sociology 63 (6), 695-606.
Jarratt, Denise G., and Michael J. Polonsky (1993). "Causal Linkages between Psychographic and Demographic Determinants of Outshopping Behavior," The International Review of Retail Distribution and Consumer Research 3(3), 303-319.
Jussila, Heikki, Esko Lotvonen, and Markku Tykkylainen (1992). "Business Strategies of Rural Shops in a Peripheral Region," Journal of Rural Studies 8 (2), 185-192.
Kang, Yong-Soon, and Nancy M. Ridgway (1996). "The Importance of Consumer Market Interactions as a Form of Social Support for Elderly Consumers," Journal of Public Policy and Marketing 15 (l) Spring, 108-117.
Kasarda, John D., and Morris Janowitz (1974). "Community Attachment in Mass Society," American Sociological Review 39, 328-39.
LaForge, Raymond W., Richard M. Reese, and Wilbur W. Stanton (1984). "Identifying and Attracting Consumer Outshoppers," Journal of Small Business Management 22 (1), 22-29.
Lambert, Zarrel V. (1979). "An Investigation of Older Consumers' Unmet Needs and Wants at the Retail Level," Journal of Retailing 55 (4) (Winter), 35-57.
Lumpkin, James R. (1985). "Shopping Orientation Segmentation of the Elderly Consumer," Journal of the Academy of Marketing Science 13 (2) (Spring), 271-289.
Lumpkin, James R., and Barnett A. Greenberg (1982). "Apparel-Shopping Patterns of the Elderly Consumer," Journal of Retailing 58(4) (Winter), 68-89.
Maslow, Abraham H. (1970). Motivation and Personality, second edition. New York: Harper & Row.
Miller, Nancy J. (1997). "Probing Exchange Theory: A Comparison of Consumers in Three Rural Communities," in Advances in Consumer Research 24. Ed. M. Brucks and D. J. MacInnis. Provo, Utah: Association for Consumer Research, 119.
Miller, Nancy J., and Rita C. Kean (1995). "Reciprocal Consumer Behavior Intentions in Rural Communities: Inducements to Shop with Local Retailers," paper presented at the Rural Retailing: Emerging Community Issues Conference, Salt Lake City, Utah.
----- (1997a). "Reciprocal Exchange in Rural Communities," Psychology and Marketing 14 (7), 637-661.
----- (1997b). "Factors Contributing to Inshopping Behavior in Rural Trade Area: Implications for Local Retailers," Journal of Small Business Management 35 (2), 80-94.
Monk, Sarah, and Ian Hodge (1995). "Labour Markets and Employment Opportunities in Rural Britain," Sociologia Ruralis 35 (2), 153-172.
Moschis, George P., and Gilbert A. Churchill (1978). "Consumer Socialization: A Theoretical and Empirical Analysis," Journal of Marketing Research 15 (November), 599-609.
Mowen, John C. (1990). Consumer Behavior, second edition. New York: MacMillan Publishing.
O'Brien, David J., Edward W. Hassinger, and Larry Dershem (1994). "Community Attachment and Depression among Residents in Two Rural Midwestern Communities," Rural Sociology 59(2), 255-265.
Palmore, Erdman B. (1968). "The Effects of Aging on Activities and Attitudes," Gerontologist 8, 259-63.
Papadopoulos, N.G. (1980). "Consumer Outshopping Research: Review and Extension," Journal of Retailing 56 (4), 41-59.
Pryor, F. L., and N. Graburn (1980). "The Myth of Reciprocity," in Social Exchange: Advances in Theory and Research. Ed. K. Gergen, M. Greenberg and R. Willis. New York: Plenum Press, 215-223.
Punj, Girsh, and David W. Stewart (1983). "Cluster Analysis in Marketing Research: Review and Suggestions for Applications," Journal of Marketing Research (20) (May), 135-146.
Samli, A. Coskun, Glen Riecken, and Ugur Yavas (1983). "Intermarket Shopping Behavior and the Small Community: Problems and Prospects of a Widespread Phenomenon," Journal of the Academy of Marketing Science 11 (2), 1-14.
Schwenk, F. N. (1994). "Income and Consumer Expenditures of Rural Elders," Family Economics Review 7 (3), 20-27.
Severly, Lawrence J. (1975). "Individual Differences in Helping Dispositions," Journal of Personality Assessment 39 (3), 292-392.
Simmons, Colin, and Christos Kalantaridis (1996). "Making Garments in Southern Europe: Entrepreneurship and Labour in Rural Greece," Journal of Rural Studies 12 (2), 169-185.
Smailes, Peter J. (1997). "Socio-Economic Change and Rural Morale in South Australia, 1982-1993," Journal of Rural Studies 13 (1), 19-42.
Solomon, Michael R. (1994). Consumer Behavior: Buying, Having, and Being, third edition. Needham Heights, Mass.: Allyn and Bacon.
Stinner, William F., Mollie Van Loon, Seh-Woong Chung, and Young Chan Byun (1990). "Community Size, Individual Social Position, and Community Attachment," Rural Sociology, 55 (4), 494-521.
Strange, Marty (1996), "Transforming the Rot Belt," Des Moines Sunday Register, February 25, C1-C2.
Stone, Kenneth E. (1989). "The Impact of Wal-Mart Stores on Firms in Competing Towns in a Typical Midwestern Sate," working paper, Department of Economics, Iowa State University.
----- (1995). Competing with the Retail Giants: How to Survive in the New Retail Landscape. New York: John Wiley and Sons.
Tongren, Hale N. (1988). "Determinant Behavior Characteristics of Older Consumers," The Journal of Consumer Affairs 22 (1), 136-157.
Ward, J. (1963). "Hierarchical Grouping to Optimize an Objective Function," Journal of the American Statistical Association 58, 236-244.
U.S. Bureau of the Census (1996). Statistical Abstract of the United States (116th Edition). Washington, D.C.: U.S. Government Printing Office.
Dr. Miller is an assistant professor in the Textiles and Clothing Department at Iowa State University. She has over fifteen years of retailing experience in small store management and buying. Her research has focused on retailers and consumers in rural areas.
Dr. Kim is assistant professor in the Department of Human Environments at Utah State University. Her research interests include international retailing and tourism.…