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The Effects of Competition on Retail Structure: An Examination of Intratype, Intertype, and Intercategory Competition
Abstract
Discount retailers and “category killers” are believed to be so detrimental to the existing retail environment that many communities have fought their entry through zoning and other regulations. However, the authors suggest that the patterns of competition among different types of retailers are more complex than previously believed. To understand this complexity better, they explore the cross-sectional relationship of competition and retail structure for different types of retailers. Contrary to popular opinion, the findings suggest a positive association between the number of larger stores and the number and size of smaller stores. This implies a mutually beneficial relationship among different types of retailers rather than an overwhelming competitive advantage for larger stores.
... Previous studies have examined different types of store formats such as competition between direct and indirect channels (Chiang et al., 2003), small and large stores (Paul et al., 2016;Zhu et al., 2009), generalists and specialists (Jacobs et al., 2010;Starfield et al., 2005), and nonprofit and for-profit hospitals (Moon & Shugan, 2020). Most previous studies focused on large stores, mostly in non-service sectors Miller et al., 1999). ...
... In the local healthcare service sector, which is mostly made up of small-and-medium scale clinics, both generalist and specialist service providers compete with each other. However, the current marketing literature offers mixed insights on consumer preference and store performances (Chen et al., 2020;Miller et al., 1999). Specifically, some consumers may prefer generalists because of their broader product line (Karande & Lombard, 2005), while others who are more riskaverse may prefer specialists, believing that they have greater expertise (Goldman, 2001;Starfield et al., 2005). ...
... Previous retail literature suggests that both intra-and inter-type competition are commonly observed (Cardinali & Bellini, 2014;Chen et al., 2020). Intra-type competition occurs between similar retailers (e.g., generalists versus generalists), whereas inter-type competition occurs between retailers of different types (e.g., generalists versus specialists) (Miller et al., 1999). The effects of these intra-and intertype competition on market performance are unclear, and fluctuations are bound to occur (Bustos-Reyes & González-Benito, 2008;Miller et al., 1999). ...
Population aging is a global phenomenon observed in many developed economies. On the one hand, this trend suggests significant opportunities for healthcare providers due to increasing service demand. On the other hand, it also implies that the industry requires new managerial knowledge to accommodate older adult consumers. In this research, we propose and examine the impact of older adult consumers on healthcare provider performance and identify boundary conditions related to two types of competition: intra‐ and inter‐competition. Using longitudinal data on healthcare provider revenues, we find that an increase in the older adult population increases the revenues of generalists but decreases those of specialists. Second, the positive effect of elderly consumers on generalists is amplified when intra‐competition (from same‐type physicians) increases and diminishes when inter‐competition (from different‐type physicians) intensifies. Third, for specialist healthcare providers, the negative impact of older adult population is mitigated by intra‐competition but exacerbated when inter‐competition becomes strong. Our results offer theoretical implications for the healthcare service marketing literature and managerial insights into decisions related to healthcare service locations. Specifically, our findings suggest that healthcare providers need to carefully consider the proportion of older adult consumers, the presence of local competitors, and their own specialties, as these factors all have a meaningful impact on performance.
... Retail wage rates have been used as proxies for retail service (Bucklin, 1972;Ingene, 1983;Miller et al., 1999). Higher retail wage rates enable firms to hire more efficient, full-time employees who are less likely to leave and to require close supervision (Ingene, 1983;Ingene & Lusch, 1981;Miller et al., 1999). ...
... Retail wage rates have been used as proxies for retail service (Bucklin, 1972;Ingene, 1983;Miller et al., 1999). Higher retail wage rates enable firms to hire more efficient, full-time employees who are less likely to leave and to require close supervision (Ingene, 1983;Ingene & Lusch, 1981;Miller et al., 1999). Further, higher wage rates motivate retailers to build larger stores, but use fewer, more efficient workers to staff them (Bucklin, 1972). ...
... In 2007, the year for which we have data, there were 369 MSAs in the United States and Puerto Rico. Our use of MSA data to study retail structure is consistent with previous research in this area (e.g., Bucklin, 1972;Ingene & Lusch, 1981;Miller et al., 1999). ...
This paper investigates the competitive structure of restaurant retailing by developing and testing a conceptual framework that combines household production economics theory with research on hedonic and utilitarian retail patronage. The results generally support this conceptualization. This study contributes to the literature in three ways. First, the theory of household economics provides the missing theoretical rationale for studying the demographic correlates of hedonic versus utilitarian retail patronage motives. Second, this study also provides evidence that the utilitarian motives underlying research on household economics can be meaningfully supplemented by investigating hedonic patronage motives. Finally, this research adds to the literature on restaurant patronage rooted in household economics by studying empirically the role of retail marketing mix variables in restaurant retailing.
... In their analysis of retail competition in a US market area, Miller, Reardon, and McCorkle (1999) distinguish three types of competition-intercategory, intertype, and intratype. In India, the intratype (one STS outlet vs. another, one hypermarket vs. another) is common; intertype (STS outlets vs. large broad line specialist such as Big Bazaar) is growing; and intercategory (small traditional vs. general merchandise supercenter) has not emerged yet. ...
... In India, the intratype (one STS outlet vs. another, one hypermarket vs. another) is common; intertype (STS outlets vs. large broad line specialist such as Big Bazaar) is growing; and intercategory (small traditional vs. general merchandise supercenter) has not emerged yet. Using two theoretical perspectivessymbiosis (mutually beneficial) and Darwinism (survival of the fittest)-Miller, Reardon, and McCorkle (1999) had examined sporting goods retailing in the Denver Standard Metropolitan Statistical Area (SMSA) and found support for symbiosis, albeit asymmetrical; while Darwinism characterized intratype competitive outlets. ...
India’s retailing sector is expected to remain in a transition spiral for the foreseeable future. Because of India’s unique context – in terms of history, regulation, institutions, demographics, geography, and traditions – there is limited applicability of the available theories of retail evolution to the retail situation in India. Drawing from the literature as well as from empirical research and practical experiences of over a decade, this paper presents a conceptual frame for understanding the retail sector of India and the likely future trajectory of this sector.
... Kohli dan Jaworski (1990) menyatakan bahwa informasi, data dan pengetahuan yang telah terkumpul baik dari berbagai sumber (konsumen, pesaing, suplier dan regulasi pemerintah) akan dapat memaksimalkan peran suatu kegiatan usaha dalam memberikan customer value yang lebih baik. Respon terhadap pasar yang cepat dan tepat merupakan salah satu respresentasi dari kapabilitas dinamis yang dimiliki oleh peritel yang dapat mempengaruhi sustainable competitive advantage yang akhirnya memberikan kinerja superior bagi peritel (Matsuno et al, 2002;Griffith et al.,2006;Miller et al.,1999). ...
... dan regulasi pemerintah) akan dapat memaksimalkan peran suatu kegiatan usaha dalam memberikan customer value yang lebih baik. Respon terhadap pasar yang cepat dan tepat merupakan salah satu respresentasi dari kapabilitas dinamis yang dimiliki oleh peritel yang dapat mempengaruhi sustainable competitive advantage yang akhirnya memberikan kinerja superior bagi peritel(Matsuno et al, 2002; Griffith et al.,2006;Miller et al.,1999).Pendekatan studi cross sectional digunakan dalam penelitian ini dan pengumpulan data dilakukan dengan metode survey. Survey dilakukan dengan menggunakan personaladministered questionnaires dengan metode Mall Intercept yakni mendatangi pasar-pasar derajat kesetujuan merupakan salah satu skala pengukuran yang banyak digunakan dalam domain pemasaran karena selain mudah dipahami oleh responden juga memudahkan dalam membedakan pilihan jawaban yang tidak terlalu banyak(Hair dkk, 2006). ...
The growing retail industry in Indonesia has two consequences; increase regional income which debatable issue, on the other side potentially decrease the performance of retailers (read: pedagang) in traditional wet market. This study not to conclude why the previous condition emerge, but explore why the performance of retailers in traditional wet market decreased. Using 315 respondents and intercept technique, the study found that there are two problems faced by retailers in traditional wet market today. The first one is their entrepreneurial orientation seems too low, the secondly their market orientation also couldn’t boosting their performance. The findings also shown retailers with higher entrepreneurial orientation and market orientation had a higher performance.
... However, there are some challenges involved with agglomeration. Similar product category retailers compete with each other when located in the same catchment area (Miller et al. 1999). The competition and cooperation between retailers can result in positive, negative, or neutral agglomeration effect (Fox et al. 2007). ...
Retail research has emphasized the importance of location in attracting mall traffic. This study focused on Indian mall retailers’ experiences on agglomeration and location strategies employed by malls and their impact on retailers’ decision to take space in the mall. The purpose of the study was to identify mall factors that play a critical role in making the mall an attractive site for renting space by retailers. Retailers seek to set up stores in areas that promise traffic and sales. Thus, it becomes important to understand the retailers’ perspective in deciding to rent space in a mall. Qualitative study was conducted to understand the retailers’ perceptions. Forty in-depth retailer interviews across Indian malls were conducted to understand retailer views on mall location factors. The findings add to the existing literature on retail location and posit that mall agglomeration and locational issues were categorized under factors like the presence of branded stores, catchment area, transport networks, and accessibility. Infrastructural, economic, and technological developments varied across malls located in different parts of the country. Retail location theories need to incorporate the infrastructure issues and attractiveness of the catchment area in explaining mall location strategies in India. Differences in the availability of facilities, services, and retail formats varied across small and big cities and influenced mall traffic.
... The more recent literature in this domain has focused on location-based competition among stores or chains. A positive association between the number of larger stores and the number and size of smaller stores is reported, implying a mutually beneficial relationship among different types of retailers rather than an overwhelming competitive advantage for larger stores (Miller et al., 1999). Vitorino (2012) used a strategic model of entry to study the store configurations of all U.S. regional shopping centers and to quantify the magnitude of inter-store spillovers. ...
The Huff model has been widely used in location-based business analysis for delineating a trading area containing potential customers to a store. Calibrating the Huff model and its extensions requires empirical location visit data. Many studies rely on labor-intensive surveys. With the increasing availability of mobile devices, users in location-based platforms share rich multimedia information about their locations in a fine spatiotemporal resolution, which offers opportunities for business intelligence. In this research, we present a time-aware dynamic Huff model (T-Huff) for location-based market share analysis and calibrate this model using large-scale store visit patterns based on mobile phone location data across ten most populated U.S. cities. By comparing the hourly visit patterns of two types of stores, we demonstrate that the calibrated T-Huff model is more accurate than the original Huff model in predicting the market share of different types of business (e.g., supermarkets vs. department stores) over time. We also identify the regional variability where people in large metropolitan areas with a well-developed transit system show less sensitivity to long-distance visits. In addition, several socioeconomic and demographic factors (e.g., median household income) that potentially affect people's visit decisions are examined and summarized.
... In that case, the crucial need is to differentiate the local offerings from the volume discount offerings -for example, fresh vegetables and unique local products, which can supplement more standardized staples bought at the volume discounter. In this way, the main street business can become complementary to, and not in competition with, the volume discounter (Miller, Reardon and McCorkle, 1999). ...
... For example, same store formats (e.g., hypermarkets, supermarkets, and discount stores) tend to perform differently depending on the market. < Table 1 here > Retail structures are typically described by different factors including, but not limited to, store number, size, format, service level, geographical distribution, and competition (e.g.: Dholakia et al., 2012;Miller et al, 1999;Bucklin, 1972). In the present study, we use two variables-productivity and concentration-to assess the retail structure of each country. ...
Conventional globalization theory holds that regional economic integration will precede price standardization across participating countries due to the increased buying power of large retail groups and parallel imports. The resulting price corridor should merely reflect differences in logistic costs and short-term local competitive actions. Yet, this study uses panel data from 25 European countries to examine how hefty food and beverage price differentials between regions remained constant over the last decade. Income, store productivity, and market concentration contribute to explain regional price differences. These findings suggest that, contrary to straight-line globalization theory, large European retailers' decisions can influence price convergence and maintain important price dispersion between economically integrated countries. We provide recommendations to enhance market integration.
... Hence, retail structures are typically described by different factors including, but not limited to, store number, size, format, service level, geographical distribution, and competition (e.g.: Dholakia, Dholakia, & Chattopadhyay, 2012;Miller, Reardon, & McCorkle, 1999;Bucklin, 1972). The present study uses two variablesdproductivity and concentrationdto assess the retail structure of each country. ...
Conventional globalization theory states that regional economic integration will precede price standardization across participating countries due to the increased buying power of large retail groups and parallel imports. The resulting price corridor should merely reflect differences in logistic costs and short-term, local competitive actions. Yet, this study uses panel data from 25 European countries to examine how hefty food and beverage price differentials between regions remained constant over the last decade. Income, store productivity, and market concentration all contribute to the explanation for regional price differences. These findings suggest that, contrary to straight-line globalization theory, large European retailers’ decisions can influence price convergence and maintain important price dispersion between economically integrated countries. We provide recommendations to enhance market integration.
... Nevertheless, as long as there is a market for a product, there will be new opportunities for distributors and stores to open despite saturation levels. Only recently and very marginally has the idea of saturation been brought up, rather implicitly in papers by [14][15][16][17][18][19][20][21] it is also addressed in an explicit but very limited manner by 22,23 in the economic, geographical and urban planning context; and it is also treated by 24-30 and but in a limited fashion. The concept of saturation in the retail industry relates to retail markets at every level, where if additional stores were to open for business, it would prove unsustainable for new entrants and would no doubt add unwanted complexity and chaos to the consumer. ...
Objective: Traditional saturation analysis on competitive location decision science focuses on diminishing returns for incumbents and newcomers in a specific spatial location pertaining to commercial retail potential past a certain point of market saturation. Methods/Findings: This study looks at this problem but employs a different approach to the subject altogether, wherein saturation is no longer a variable affecting only retailers but one that affects both: the marginal utility of consumers and the revenue of retailers albeit differently. A new mathematical model is proposed based on selected papers, contributing new insight into an already widely discussed subject. Application: Analysis shows that it is important for competitive location decision-making to address saturation from both sides of the overall competitive location decision issue, not just from the retailers' standpoint.
... Nevertheless, as long as there is a market for a product, there will be new opportunities for distributors and stores to open despite saturation levels. Only recently and very marginally has the idea of saturation been brought up, rather implicitly in papers by [14][15][16][17][18][19][20][21] it is also addressed in an explicit but very limited manner by 22,23 in the economic, geographical and urban planning context; and it is also treated by 24-30 and but in a limited fashion. The concept of saturation in the retail industry relates to retail markets at every level, where if additional stores were to open for business, it would prove unsustainable for new entrants and would no doubt add unwanted complexity and chaos to the consumer. ...
Objective: Traditional saturation analysis on competitive location decision science focuses on diminishing returns for incumbents and newcomers in a specific spatial location pertaining to commercial retail potential past a certain point of market saturation. Methods/Findings: This study looks at this problem but employs a different approach to the subject altogether, wherein saturation is no longer a variable affecting only retailers but one that affects both: the marginal utility of consumers and the revenue of retailers albeit differently. A new mathematical model is proposed based on selected papers, contributing new insight into an already widely discussed subject. Application: Analysis shows that it is important for competitive location decision-making to address saturation from both sides of the overall competitive location decision issue, not just from the retailers' standpoint.
... However, as noted by Miller, Reardon, and McCorkle (1999), competition is not only likely at the regional level between retail clusters but also at the local level between firms. Consequently, the entry of a new retail firm not only can benefit surrounding firms by attracting more consumers but also can increase competition for consumers' disposable income or can create market crowding, which is a dispersion force (Saito & Gopinath, 2009). ...
We investigate the effects of IKEA entry in three Swedish municipalities, finding that revenues for incumbent retailers located 1 km from the new IKEA store experienced a 7% increase in revenues due to positive spillover. The effect was insignificant for retailers located in city centers or more than 1km from IKEA. Moreover, the positive agglomeration effects only dominate the negative competition effects for stores that sell complementary products, while same-market retailers located between 2 and 5 km away from the new IKEA store experienced revenue loss due to IKEA entry. In contrast to retail revenues, the effects on employment were statistically insignificant.
... Then, many areas coexisted: primary, secondary, tertiary and quaternary ones. A geomarketing tool was used within the retail trade area to locate intra-type and inter-type competitors because of their influence on retail market structure (Miller, Reardon, and McCorkle 1999). The number of stores per market area was used to estimate competition influence. ...
Retailers need to determine the performance of their individual stores and, beyond the stores, the managers in charge of running them. So how to estimate individual results of each sale unit and, hence, how to fairly determine managers’ efforts? The aim of this paper is to develop performance standards that can be applied so as to fairly distribute rewards to managers regarding their performances by taking into account store neighbourhood characteristics. It answers the following research questions: how to take into account the local market in the evaluation of the performance of the store? In order to propose a fairer measure of store performance, the authors introduce and explore the concepts of organisational justice and store efficiency. They use real data from a French supermarket chain and a geomarketing approach. The two-step Data Envelopment Analysis (DEA) model results are compared with a retailer’s ranking. The retailer tends to favour points of sale having a more important sales area, with more employees and operating in a more densely populated area with a higher buying power. The ranking stemming from the DEA model links store performance to other geo-demographic variables.
... In his 'theory of cumulative attraction', Nelson (1958) describes how retailers benefit most from a continuous cluster of compatible peers. Non-retail land uses, vacant lots and incompatible stores can disrupt this continuity, harming the viability of surrounding retailers (Miller et al., 1999;Oppewal and Holyoake, 2004). Also, the scattering of retailers will increase walking distances and decrease the convenience of a retail centre for consumers -again harming its overall viability (Reimers and Clulow, 2004). ...
This paper explores the long-term sensitivity of street-level retailers to agglomeration to corroborate its theorised benefits under current economic modelling. It does so by studying the annualised chance of closure of retailers as a function of the number of surrounding retailers, as well as how different types of retailers respond differently to agglomeration. A time fixed effect model is used to study the mortality rate of retailers over the period of a century. The study draws from a self-created database of retail establishment locations and types in Detroit, Michigan and The Hague, Netherlands between 1911 and 2011. The case study cities have been selected for their combination of similarities and differences. While downtown Detroit is infamous for its high vacancy and The Hague has been praised as a vibrant Dutch urban core, both cities have in fact suffered significant loss of retail activity over the past century, allowing for the study of retail closure under different socio-economic and cultural circumstances. The study demonstrates a significant sensitivity of retailers to agglomeration in both cities. The study also indicates a specifically high sensitivity to agglomeration in the case of comparison shops. Without a critical mass of peers, these retailers will face a significantly higher than average chance of closure. The sensitivity to agglomeration is remarkably similar between both case studies, urban cores which at first sight have experienced rather different fates over the past century. This cross-cultural similarity may point to a generalisability of the underlying mechanism of sensitivity to agglomeration.
International student mobility programs play an important role in fostering a holistic development of university students. In an effort to ensure its continuity despite the travel restrictions due to the COVID-19 pandemic, a team of Universiti Malaysia Sarawak (UNIMAS) undergraduates embarked on an initiative to create a digital version of student mobility with the guidance from their supervisor. The project named e-EduTour includes introduction to UNIMAS campus, tour of tourist attractions, taste of local food, exposure to local culture, and English language lessons. The project was successfully commercialized to Japanese partner university students. This paper provides an illustrative case study of the journey undertaken by the host university undergraduates in creating the e-EduTour, examine the foreign participants' views about the e-EduTour's components and university student buddies' opinion about their experience. The data gathered via questionnaire from the Japanese participants showed that they view the e-EduTour content as very good and especially value the support given by the student buddies. The data gather from reflections of the UNIMAS team show that working on the e-EduTour project provided an opportunity for them to apply knowledge learnt in the classroom to solve a real-life problem by collaborating with peers from various disciplines of study, learn through experience in a fun and exciting way, form friendship with foreign students, as well as foster personal growth. The findings clearly indicate that the digital version of short-term student mobility is possible and could enrich both the host buddies as well as the foreign participants' learning, despite the physical distance.
A kiskereskedelemben kialakult vállalatcsoportokon (multinacionális, illetve hazai láncok, független kiskereskedők) belüli és csoportok közötti verseny alapvetően meghatározza a kiskereskedelem szerkezetét. Az élelmiszer- és napicikk-kiskereskedelemben a csoportokon belül helyettesítési, a csoportok között pedig kiegészítő hatásokat feltételez, amelyet fogyasztói szemszögből vizsgál. Egy hallgatói mintán végzett feltáró kutatás kimutatta, hogy a csoportokon belül és a csoportok között is alacsony, illetve közepes mértékű helyettesítő hatások érvényesülnek. A legerősebb helyettesítési viszony a multinacionális láncok által üzemeltetett hiper- és szupermarketek között mutatható ki, amelyeket a megkérdezettek nagyon hasonlónak, ebből következően felcserélhetőnek értékeltek. A hazai láncok és a független kisboltok között közepes mértékű helyettesítési hatás érvényesült, az üzlettípusonkénti vásárlási gyakoriság és a vásárlás értéke alapján.
Retail institutions offer economic and social benefits to the participants in a market. It is expected that in a less developed economy the social factors influence economic behaviour much more than in developed economies. The rural markets offer increased opportunities for the influence of social factors on economic transactions. This study examined the case of a rural periodic market. To ensure reliability the case study protocol questions reflected propositions developed on the research questions. It was expected that the participants would exhibit the influence of social relations in their market transactions. The results indicated that the economic benefits than social considerations influenced participant behaviour in the rural periodic market. Contrary to expectations not all consumers in a less developed economy exhibit social embeddedness in economic behaviour. Implications are for policymakers involved in planning and regulating rural markets. They need to take into consideration the differing behaviour of consumer groups in designing or regulating retail markets. This study examining the social embeddedness of buyer behaviour in the rural retail context of a less developed economy is presumably the first.
The paper aims to study in depth the impact of three pull drivers, namely price, assortment and promotion, on store-switching from Hypermarkets and Supermarkets towards Discounters. Through panel data analysis of IRI-sourced real consumer sales data from the grocery retailing market in Italy, the paper shows that Discounters’ market share increases to the detriment of the two competing store formats when price gap becomes wider and assortment gap narrower. Conversely, an increase in Discounters’ promotion intensity does not seem particularly effective in driving the same store-switching effect. The intensity of sales share trade-off is higher when coming from Supermarkets rather than Hypermarkets. This suggests that competition between Discounters and Supermarkets is intratype, and so fierce that they become direct substitutes for each other. On the contrary, competition between Discounters and Hypermarket is intertype, so that they complement one another as integrated shopping touchpoints.
The Huff model has been widely used in location‐based business analysis to delineate a trade area containing a store’s potential customers. Calibrating the Huff model and its extensions requires empirical location visit data. Many studies rely on labor‐intensive surveys. With the increasing availability of mobile devices, users in location‐based platforms share rich multimedia information about their locations at a fine spatio‐temporal resolution, which offers opportunities for business intelligence. In this research, we present a time‐aware dynamic Huff model (T‐Huff) for location‐based market share analysis and calibrate this model using large‐scale store visit patterns based on mobile phone location data across the 10 most populated US cities. By comparing the hourly visit patterns of two types of stores, we demonstrate that the calibrated T‐Huff model is more accurate than the original Huff model in predicting the market share of different types of business (e.g., supermarkets versus department stores) over time. We also identify the regional variability where people in large metropolitan areas with a well‐developed transit system show less sensitivity to long‐distance visits. In addition, several socioeconomic and demographic factors (e.g., median household income) that potentially affect people’s visit decisions are examined and summarized.
Seasonal marketing strategies as cause to increase number of retail sales and sales quantity of the retail sector. Consumers are expected to purchase large quantity of retail products during the seasonal time. Retailers practice different seasonal offer marketing strategies to improve their sales with the support of marketing mixes. Even though there are several alternatives seasonal offers strategies available in the retail industry nonsystematic promotions are done by the retailers. Lack of practical oriented researches to guide the retailers, made a gap for this research. Many researchers studied the specific product or promotional strategies as empirical works. This research focused to investigate the marketing strategies espoused by the retailers and the customers’ responses on these strategies. A framework on marketing strategies for seasonal offer was developed based on the extensive review of literature with coding method. This study compared the strategies in the literatures and the strategies adopted by the retailers adopted by the retailers in Manner district. The samples of 25 retailers and 50 customers that were chosen to partake in this qualitative study based on purposive sampling method. Findings show, that all the strategies identified form the literatures were not espoused by the retailers, diverse retailers adopt different strategies. For the diverse outlets, customers are attracted by few seasonal based marketing strategies. This study suggested that context specific marketing strategies for seasonal offers are preferred by the customers. Further this study recommended to the retailers, that specially strategies can be improved and they can implement the strategies which are stated in the literatures but not adopted by them in Mannar, where the customers prefer to purchase during the seasons.
Key words: Marketing strategies, Marketing Mixes, Retail Stores, Seasonal offers
A substantial literature has established the competitive impacts of retail chain development on single location retail businesses. This study explores the characteristics of these impacts at the local level through analysis of the structure of five distinctive retail districts in Denton, Texas. The analysis focuses on Denton’s central business district (CBD), a traditional retail strip, a special retail district, an enclosed shopping mall, and a power retail center. The empirical foundation for the investigation is a business database covering the years 1997 to 2010. This database captures location, industry, and firm status (single versus chain location) for each business operating in the city. Through the study period, the single versus chain location relationship did not substantially change within any of the districts. However, all five retail districts experienced decreasing retail diversity, indicating a greater focus on specific business types. Denton’s power retail center focused on chain restaurants and big box stores, while the CBD shifted from low-end retail to local food and drinking establishments. Both of these leading districts appear to have developed unique competitive advantages, In the CBD’s case this is especially instructive given the many other cities where chains have out-competed local retailers and associated business clusters.
While smartphones have become an important distribution channel for coupons, store clusters still play a pivotal role in retailer operations; nevertheless, many questions remain unanswered as to the extent to which store clusters affect a store's promotional outcome in the era of mobile technology. This paper investigates how store clusters, as shopping centers, affect mobile coupon acquisition and redemption. The study identifies store clusters as a “double-edged” sword, affecting coupon acquisition and redemption in an opposing way. Specifically for a focal store both a higher density of shopping centers around, and a closer distance to the nearby shopping center results in a higher coupon acquisition but a lower coupon redemption rate. The results are robust. This paper also investigates the impact of coupon features on coupon acquisition and redemption, as well as the moderating effects of store clusters on coupon features. Finally, this paper offers several managerial implications on mobile coupon promotions.
The current content proposes the development of a sustainable theoretical line of association between the social categories of trust and commitment and, the performance of organizations participating of interorganizational networks. The combination of individual performance from organizations reflects in benefits to the business network in which businesses are embedded. The purpose is to understand the relationship between trust, commitment and performance in interorganizational networks. The analysis for this theoretical test was conducted considering the perspective of business networks according to the social paradigm in networks (NOHRIA; ECCLES, 1992; CASTELLS, 1999). The perspective of networks leads to the establishment of present relations between the structuring elements of the two perspectives: 1) social: through social categories of trust and commitment and; 2) economic rational: related to network performance as a composition of assessment to identify performance of organizations in a network. Articles that relate the manifestation of social categories to the performance of the organizations participating in the network were analyzed. The integrative proposal of the trust, commitment and performance constructs has led to the understanding that the level of trust between organizations in a network is positively associated with the level of commitment among these organizations, understood as the degree of subordination of immediate individual goals regarding to the collective goals. Moreover, the evolution of these two social categories, trust and commitment, manifested in a network enhances the expansion of the performance of this network, understood as a composition of the results from participating organizations.
KEYWORDS: Networks. Trust and Commitment. Performance in networks.
Retail clusters do not remain static, but change their size and density, influenced by factors that affect business operations. They also interact with, compete with, or complement others in different hierarchies for customer shares. This study aims to unfold the interrelationship between district- and neighborhood-level retail clusters in a catchment area by investigating how the growth (or decline) of one influences the other, and whether these two retail cluster types differ in their reactions to or impacts on certain external changes—land value and property development—occurring in the catchment areas, in the context of Seoul, South Korea, from 2000 to 2014, using Huff modeling and panel vector autoregressive modeling. Findings suggest that once a district-level retail cluster attracts more retail outlets, it not only continues to grow, but also contributes to the growth of neighborhood-level retail clusters for up to three to four years. Then excessive competition within district-level clusters leads to their own short-term decline before stabilization. The growth of neighborhood-level retail clusters also further spurs their continuing growth, whereas such shock does not influence the district-level retail clusters. Land value is influenced only by district-level retail clusters, and the converse does not hold true. An increase in neighborhood-level retail clusters is one of the stimuli of residential and commercial property developments, while that of the district-level retail clusters only encourages the commercial while discourages residential developments. Conversely, when residential property developments occur in the catchment area, neighborhood retail clusters respond positively and experience short-term growth.
We assess determinants of household expenditures at Japanese off-premise food and beverage (F&B) retailers using data from a recent business census that provides data on 786 cities comprising 91% of Japan's population. We make three fundamental contributions to the literature. First, we determine the effect on expenditures from non-residents who regularly enter a city for education or employment; they alter the actual daytime population by up to 5/8ths more – or 5/8ths less – than the resident population. Second, we examine the impact of intratype and intertype competition on expenditures. Third, we use product assortment and customer service as mediators between our determinant variables and expenditures. We show that a city's daytime population raises demand at F&B retailers; intratype competition (i.e., supercenters) lowers sales at F&B retailers, and intertype competition (i.e., restaurants) benefits F&B retailers. Product assortment and customer service mediate the effects of independent variables on household expenditures.
Marketing activities play an important role in determining sales performances for B2B companies; however, prior research implies that the effect of marketing activities in the industrial market cannot be inferred from findings in the consumer market due to their differences such as types of customers or products. We further note that B2C companies (i.e. B2B client companies) serve individual consumers, and thus, B2B sales performance can be better understood as consumer market contexts are also taken into account. In this research, we study B2B marketing activities and B2C market contexts, and their effects on B2B sales performance. To this end, we focus on three factors : sales calls conducted by B2B companies, and market commercialization and social interactions in regions where B2C companies operate. Our empirical analyses provide the following results. First, B2B sales performance improves in proportion to sales calls. When sales calls serve as the means to provide product information, they help client companies understand product benefits and make purchases accordingly. Second, B2B sales performance increases as B2C markets become more commercialized, but the effect of sales calls on B2B sales declines. Commercialized markets are more attractive to individual consumers and thus, lead to greater sales in the consumer market. However, the role of sales calls as information sources weakens as B2C companies share product information themselves and develop expertise in commercialized markets. Finally, B2B sales are greater in urban markets compared to suburbs. However, the effect of sales calls on B2B sales increases in suburban markets compared to the urban counterpart. Cohesive social interactions in suburbs hinder information diffusion among B2C companies, which in turn strengthens the role of sales calls as information sources. We theoretically contribute to the B2B marketing literature and managerially suggest strategies to improve B2B sales performance.
본 연구는 가전제품 소매채널에 관한 소비자의 선호 및 이용행태를 조사하고 가전제품 구매 채널 현 황과 소비자들의 점포선택과 E팩도를 분석하여 소비자가 특정 채널에 대하여 가지고 있는 소위 channel equity어| 대하여 탐색적으로 접근 하고자 한다—
분석결과 가전제품 멀티채널 쇼핑환경은 소비자로 하여금 채널별로 차별화된 구매 패턴과 쇼핑동기를 E택들어 주고 있었다. 백화점이나 대리점은 품질의 우수성과 NS 측면에서 우세하며 대형할인점, 양판점, TV홈쇼핑, 인터넷쇼핑몰, 전자제품 판매 상가는 가격적인 측면이 경쟁 우위로 조사되었다. 채널벌 소비 자 만족도에 있어서는 애프터서비스가 잘되고 있는 백화점이나 대리점 등이 만족도가 상대적으로 높은 소매 채널임을 알수 있다
채널 에퀴티의 구성요인은 가격 경쟁력과 비교구매, 이용편리성, NS, 판매원의 전문성, 배송의 신속 성, 제품 검색용이, 판매원의 친절성, 매장의 쾌적성, 교통 편리성 등을 들 수 있다. 백화점의 경우 거의 모든 요소에서 가장 높은 만족도를 가지고 있어 채널 에퀴티가 높게 평가되었다. 인터넷 쇼핑몰은 제품 을 쉽게 검색할 수 있다는 점에서 우위에 있으며 TV홈쇼핑의 경루는 비교구매와 가격경쟁력에서 우위가 있음을 알 수 있었고 채널별로 채널 에퀴티를 구성하는 요인들의 상대적 비중은 매우 달랐다. 본 연구에 서는 채널 만족도를 평가한 후 에퀴티 포트폴리오와 채널별 에퀴티 구성 결과를 제시하고 있으나 향후 채널 에퀴티의 개념과 관리 툴에 대한 본격적인 연구가 요망된다.
Purpose
The purpose of this paper is to investigate the relationship between national cultural values and retail structure.
Design/methodology/approach
The authors use a panel data set of 67 countries over the period 1999-2012.
Findings
The results demonstrate that national cultural values, measured with the World Values Survey’s traditional/secular-rational and survival/self-expression dimensions, affect retail structure.
Research limitations/implications
While marketing scholars have examined the relationship between demographic and competitive factors and retail structure, there has been a substantial body of anecdotal evidence showing that national culture can also drive retail structure development. In order to enhance the understanding of the relationship between national culture and retail structure, the authors empirically examine the impact of national cultural values on retail structure.
Originality/value
This study is the first one to empirically examine the impact of national culture on retail structure. The authors thus help advance retail structure research the primary focus of which has been on investigating the impact of demographic and competitive factors on retail structure. This study is especially relevant to international retail managers who coordinate retail operations in multiple countries around the world. These managers need insight into the impact of national cultural values on retail structure in order to devise effective retail strategies for each host market.
A framework for market analysis based on customer perceptions of substitutability-in-use is presented.
An empirical application in the financial/banking services market is used to illustrate that when product preferences are dependent on the use/consumption context (especially relevant when products have multiple uses), situational variables can help predictive ability, and hierarchical clusters (requiring exclusive group membership) may be misleading. Additionally, it is shown that interactions among situation, product, and person factors may be more managerially meaningful than the main effects.
In this paper we argue that patterns of organizational niche overlap and nonoverlap influence the organizational niches in which entrepreneurs create organizations. Organizational niches characterize the different resource requirements and productive capacities of individual organizations in a population. Depending on which organizational niches are targeted, entrepreneurs will face different competitive landscapes. For a population of day care centers DCCs, we measure organizational niches and compute organizational niche overlaps in terms of the ages of children they are licensed to enroll. Using weights based on organizational niche overlaps, we disaggregate population density i.e., the number of DCCs into overlap density and nonoverlap density to measure the potential for competition and cooperation among DCCs. The overlap density of an organizational niche is equal to population density weighted by the overlaps of the focal organizational niche with all other organizational niches. Conversely, non-overlap density is equal to population density weighted by the absence of overlaps of a focal organizational niche with all other organizational niches. We hypothesize that overlap density will be negatively related to the founding rate. We expect entrepreneurs will be much less likely to target or be capable of founding organizations in crowded parts of the resource space than parts that are less densely populated. We also hypothesize that nonoverlap density will be positively related to the founding rate. This is because differentiated DCCs do not compete directly for resources, and, at the same time, their presence can have facilitative influences through complementary demand enhancement and widening social acceptance of the organization form. Supporting these predictions, a dynamic analysis showed that overlap density had a competitive effect on the founding rate, while nonoverlap density had a positive effect. Parallel effects were obtained when overlap and nonoverlap densities were further disaggregated on the basis of geographic proximity into local and diffuse components. Overall, our findings are consistent with earlier research on organizational founding at the population level, but reveal intrapopulation patterns of mutualism and competition that influence the likelihood of organizations being established in different organizational niches. The key result of this study, that location in a multidimensional resource space, together with the distribution of other competitors and noncompetitors, has a significant impact on founding probabilities serves to illuminate some of the underlying dynamics of competition and mutualism that impact strategic and entrepreneurial processes.
Reports on the results from a consumer survey of shopping trips to
supermarkets in England and Wales. Most people exhibit habits about when
they do their main trip to the supermarket: 61 per cent have a usual day
and 67 per cent a usual time of day. Most shoppers state that they could
shop at other times but give reasons for their actual times that reflect
situational pressures such as the pattern of work and nearness to the
weekend. Many people state that they deliberately avoid busy shopping
times and the survey showed that a small number of these people do so.
However, there was no significant tendency for those who dislike
checkout delay to shop at quieter times than for those who are tolerant
of this delay. Store operators cannot change the main situational
factors that control the time of use of stores and this limits their
ability to influence when people shop. Nevertheless, the survey
indicated that some increase in the use of off-peak times could be
achieved by permanent in-store changes and better promotion of the
off-peak times.
Variations in the level of retail sales between cities are governed by a different set of forces than are variations in sales to individual consumers. This study seeks to determine the factors influencing city variations in retail sales in Illinois. Influencing factors are found to vary markedly with the category of sales studied. Also, contrary to preliminary indications, income turns out to be an important variable.
A framework for market analysis based on customer perceptions of substitutability-in-use is presented. An empirical application in the financial/banking services market is used to illustrate that when product preferences are dependent on the use/consumption context (especially relevant when products have multiple uses), situational variables can help predictive ability, and hierarchical clusters (requiring exclusive group membership) may be misleading. Additionally, it is shown that interactions among situation, product, and person factors may be more managerially meaningful than the main effects.
This paper is the first stage of an analysis of the determinants of productivity and productivity change throughout the channel of distribution. The model is related to the extant literature on productivity in distribution and to recent productivity trends in the American economy.
Any market is a social formation which decouples sellers from buyers exactly by turning the particular persons into occupants of roles. These roles form a transposable structure, which also translates items of offer into roles as commodities. Other varieties of such social formations are, for example, ritual prestation cycles of gifts, in which status and purity are computed via regularized offerings and receptions (such as Strathern’s The Rope of Moka, 1971). But all markets are decentralizing; they dissolve the global structure of flows in prestation institutions into locally accountable flows.
The producer side of markets has been viewed as either a decision arena or a stable structure of distinct roles. Harrison White has, however, proposed a model of markets where decision and structure
depend on each other for their content and form. I show how White's model creates an image of markets as mechanisms—built
from distinctive role behavior and giving guidance to the production decisions that underlie distinct roles. I offer a user's
guide to the mechanism, and illustrate its payoffs. Finally, I argue that transcending the dualism between decision and structural
approaches involves producing a theory that is both normative and positive in its claims, and ex post and ex ante in its orientation.
Such theory is needed for contexts where both decisions and stable structures can be found.
Determination of the nature and scope of competition in the channel of distribution is of increasing interest to macromarketers because of the growing importance of marketing in the American economy. This competition is influenced by many factors, among which is the extent of scale economies. This article investigates economies of scale in retailing from both a conceptual and an empirical perspective. This represents the first stage in an analysis of competition in retailing and, ultimately, throughout the channel of distribution.
Attempting to resolve the impasse in research on performance differences among strategic groups of firms, we propose the use of ideas and models from organizational ecology. We demonstrate the potential of such and approach by applying ecological models to study the three organizational forms found in the modern American brewing industry-the mass producer, the microbrewery and the brewpub. The analysis covers the period from 1975 to 1990 and examines the life histories of 253 breweries. The findings support the use of an ecological model of resource-partitioning and of organization form-specific models of density. Specifically, we find that: (1) founding rates of microbreweries and brewpubs increase with density and then decline; (2) mortality rates of brewpubs decline with density; (3) mortality rates of microbreweries decline with industry concentration: and (4) mortality rates of mass production breweries are highest for intermediate size firms. In general, the analysis yields new insight into the dynamics of the rapidly changing American brewing industry and its strategic groups.
This paper departs from the common practice of focusing on large, generalist organizations and shows that new organizational insights are obtined by adopting a broader, ecological perspective. The newspaper publishing industry is examined as an illustration. The ecological focus shows that many small, specialized organizations operate successfully in this industry, despite apparently high levels of local concentration. A resource-partitioning model is advanced to explain the interorganizational relationships between generalist and specialist organizations. Statistical tests of the model using historical data on 2,808 American local newspaper organizations show the merit of using the ecological perspective for analyzing industries.
This paper develops an ecological model of the competition of social organizations for members. The concept of the ecological niche is quantified explicitly in a way which ties together geography, time, and the social composition of organizations. A differential equation model analogous to the Lotka-Volterra competition equations in biology captures the dynamics of the system. This dynamic model is related to the niche concept in a novel way, which produces an easily understood and powerful picture of the static and dynamic structure of the community. This new perspective provides a theoretical link between the aggregate macrostructural theory of Blau (1977a,b) and the microstructural dynamics of organizational demography (Pfeffer, 1983). The model is tested with data on organizations from a midwestern city.
The presence of demand interrelationships among substitute and complementary goods in retail stores was demonstrated by Mulhern in 1989 and was extended by Walters in 1991. Retail pricing strategies should incorporate such demand interdependencies to maximize store profitability. The authors review multiple-product pricing and develop a theoretical framework for retail pricing and promotion policies based on the implicit price bundling of related products. They empirically calibrate how the regular and deal prices of individual brands influence the sales of substitute and complementary items. More important, they demonstrate how retailers can maximize profitability by exploiting the interdependencies in demand that are present among retail products.
The need to identify the boundaries of increasingly complex product-markets has spawned a number of analytical methods based on customer behavior or judgments. The various methods are compared and contrasted according to whether they are consistent with a conceptual definition of a product-market, and their ability to yield diagnostic insights.
This paper presents a formal model of retail demand, based upon a household production framework, that permits rigorous analysis of retail assortments. The model captures the essential shifting of distribution costs between retailers and consumers that manifests itself in retailers' provision of distribution services for consumers. We apply the model to define rigorously conventional retailing concepts, such as assortment breadth and depth, and to explain the appearance of certain well-known phenomena such as market-basket pricing, nonprice retail competition, and the incentives for retail agglomerations to form. Throughout, distribution services play a critical role in binding together the analytical model and the diverse reality giving rise to retail assortments.
This paper develops a theoretical model to explain consumer behavior in the context of spatially extensive retail markets. Several socio-economic variables influencing total and per capita retail sales are identified and their effects on sales are predicted. The theoretical framework presented in this paper serves to link location theoretic arguments to the retail trade arena and to provide a guideline for the empirical work reported. The empirical work encompasses nine retail trade sectors plus retailing in the aggregate. Good results are obtained for total sales and credible results for per capita sales using data from 229 United States SMSAs.
Production markets have two sides: producers are a fully connected clique transacting with buyers as a separate but aggregated clique. Each producer is a distinctive firm with a distinctive product. Each side continually minotors reactions of the other through the medium of a joint social construction, the schedule of terms of trade. Each producer is guided in choice of volume by the tangible outcomes of other producers-not by speculation on hypothetical reactions of buyers to its actions. Each producer acts purely on self-interest based on observed actions of all others, summarized through a feedback process. The summary is the terms-of-trade schedule, which reduces to constant price only in limiting cases. The market emerges as a structure of roles with a differentiated niche for each firm. Explicit formulae-both for firms and for market aggregates-are obtained by comparative-statics methods for one family of assumptions about cost structures and about buyers' evaluations of differentiated products. Not just any set of firms can sustain terms of trade with any set of buyers. There prove to be there main kinds of markets, and three sorts of market failure, within a parameter space that is specified in detail. One sort of market (PARADOX) has a Madison Avenue flavor, another is more conventional (GRIND), and a third (CROWDED) is a new form not included in any existing theory of markets. Current American industrial markets are drawn on for 20 illustrations, of which three are presented in some detail. Inequality in firms' market shares (measured by Gini coefficients) is discussed.
12th Ed Bibliogr. s. 783-829
" A study made under contract with the Community Renewal Program of the city of Chicago " Bibliografía
To account for the proliferation of specialist organizations as industries mature, this paper examines the relative importance of four processes-density dependence in founding rates, niche formation through changes in consumer preferences, resource partitioning, and direct institutional support-to explain the level and dispersion in foundings of specialist organizations. Analyses of the founding rate of specialist organizations, farm wineries, over 1941-1990 reveal that state-level farm winery density has the strongest impact on both the level and dispersion of farm winery foundings. Density effects are followed by the effects of resource partitioning, institutional support, and niche formation, in order of level of importance, and by the effects of niche formation, institutional support, and resource partitioning, in order of the importance to dispersion. The results suggest that factors such as density dependence and resource partitioning that are endogenous to a specific population need to be considered in combination with factors such as niche formation and changes in the institutional environment that are exogenous to the population to account adequately for the proliferation of specialist organizations.
The main idea of this article is that geographical concentration of stores selling similar products can be explained by consumers' imperfect information and their resulting need to search the market. A cluster of stores sustained by these forces is not necessarily located at the point that minimizes consumer transportation costs--a fact that distinguishes it from clustering phenomena which may be explained by Hotelling-type arguments. For the purposes of the analysis this article presents a model of monopolistic competition under imperfect information which could be of independent interest.
Retail research has evolved over the past sixty years. Christaller's early work on central place theory, with its simplistic combination of range and threshold has been advanced to include complex consumer shopping patterns and retailer behavior in agglomerated retail centers. Hotelling's seminal research on competition in a spatial duopoly has been realized in the form of comparison shopping in regional shopping centers. The research that has followed Christaller and Hotelling has been as wide as it has been deep, including literature in geography, economics, finance, marketing, and real estate.
In combination, the many extensions of central place theory and retail agglomeration economics have clearly enhanced the understanding of both retailer and consumer behavior. In addition to these two broad areas of shopping center research, two more narrowly focused areas of research have emerged. The most recent focus in the literature has been on the positive effects large anchor tenants have on smaller non-anchor tenant sales. These positive effects are referred to as retail demand externalities. Exploring the theoretical basis for the valuation of shopping centers has been another area of interest to researchers. The primary focus of this literature is based in the valuation of current and expected lease contracts.
The Impactof CollectiveBehavioron Competitive Strategy: A Case Study of Wal-Mart's Entry in the Northeast
- Nora Barnes
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The Demise of Mom and Pop?
- Tom Ehrenfeld
Ehrenfeld, Tom (1995), "The Demise of Mom and Pop?" Inc., 17
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Lemoore Downtown Revitalization Plan
- Mary Galagher
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Sporting Goods Goes Channel Surfing
- Tom Doyle
Doyle, Tom (1997), "Sporting Goods Goes Channel Surfing,"
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