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Author: | Bhatnagar, A. Ratchford, B.T. |
Title: | A model of retail format competition for non-durable goods |
Journal: | International Journal of Research in Marketing
2004 : MAR, VOL. 21:1, p. 39-59 |
Index terms: | Marketing Competition Retailing Supermarkets Shopping Convenience foods Non-durable goods Models |
Language: | eng |
Abstract: | This paper develops a general model of retail format choice for non-durable goods. Using one common model, it is possible to isolate the states under which patronizing supermarkets, convenience stores, and food warehouses would be optimal. The optimality of the different formats is shown to depend on membership fees, travel costs, consumption rates, perishability of products, inventory holding costs of consumers, and cost structures of retailers. Several hypotheses are developed regarding format choice by consumers. The hypotheses are tested on self-reports of shopping behaviour in hypothetical situations. |
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