The Effects of Sister-Store Presence and Market Competition on Product Assortment: Evidence from Book Retailing

2021 ◽  
Vol 13 (3) ◽  
pp. 155-171
Author(s):  
Tao Chen ◽  
Yu Jeffrey Hu ◽  
Mohammad Rahman ◽  
Jiong Sun
Keyword(s):  
Market Competition ◽  
Substitution Effects ◽  
Chain Store ◽  
Product Assortment ◽  
Retail Chain ◽  
Bookstore Chain

When consumers’ preferred products are not carried by the retail chain store they visit, they may switch to purchasing these products from nearby sister stores of the same chain or from nearby competing stores. Such within- and across-chain substitution effects are enhanced as store-level product assortment information becomes increasingly available to consumers. It is important for scholars and practitioners to understand the effect of sister-store presence and market competition on retail product assortment strategies. In this paper, we obtain store-level product assortment data from a nationwide bookstore chain and study how sister-store presence and market competition can have an impact on the retail chain’s product assortment. In addition, we explore how this impact differs for niche and popular products. Our results show that having at least one sister store nearby reduces product assortment and such effects are stronger for niche products although having a competing store nearby increases product assortment and such effects are stronger for popular products.

Factors Influencing Customer’s Retail Chain Store Brand Choice Intention: Empirical Study of Circle K Stores in Hanoi

2020 ◽  
Vol 36 (4) ◽  
Author(s):  
Nguyen Thu Ha ◽  
Nguyen Thi Thanh Huyen
Keyword(s):  
Brand Choice ◽  
Distribution Networks ◽  
Analytical Framework ◽  
Store Brand ◽  
Chain Store ◽  
Retail Chain ◽  
Five Elements ◽  
Relationship Of ◽  
The Relationship

The retail market in Vietnam continues to grow with the entry of foreign retail brands and the strong rise of domestic businesses in expanding distribution networks and conquering consumer confidence. The appearance of more retail brands has created a fiercely competitive market. Based on the outcomes of previous research results on brand choice intention combined with a customer survey, the paper proposes an analytical framework and scales to examine the relationship of five elements including store image, price perception, risk perception, brand attitudes, brand awareness and retail brand choice intention with a case study of the Hanoi-based Circle K convenience store chain. These five elements are the precondition for retail businesses to develop their brands so as to attract customers.

scholarly journals OPTIMIZATION MODEL FOR MATERIALS EXPEDITION: AN APLICATION IN A RETAIL CHAIN STORE

2016 ◽  
Vol 7 (5) ◽  
pp. 627-642
Author(s):  
Rogério Santos Cruz ◽  
Elder Rodrigues Viana ◽  
Adriano Maniçoba da Silva ◽  
Alcir das Neves Gomes
Keyword(s):  
Optimization Model ◽  
Chain Store ◽  
Retail Chain

scholarly journals Optimal Location Analysis of Delivery Parcel-Pickup Points Using AHP and Network Huff Model: A Case Study of Shiweitang Sub-District in Guangzhou City, China

2020 ◽  
Vol 9 (4) ◽  
pp. 193 ◽  
Author(s):  
Zilai Zheng ◽  
Takehiro Morimoto ◽  
Yuji Murayama
Keyword(s):  
Public Transportation ◽  
Residential Buildings ◽  
High Population ◽  
Chain Store ◽  
Analytic Hierarchy ◽  
Priority List ◽  
Guangzhou City ◽  
Retail Chain ◽  
Last Mile ◽  
Number Of Customers

The use of parcel-pickup points (PPPs) is an effective approach for solving the last-mile problem. However, few studies provide specific guidance for the optimal organization of PPPs. Here, a geographic information system(GIS)-based hybrid model was developed combining the widely used analytic hierarchy process (AHP) multi-criteria analysis method with the Huff model that predicts the number of visiting customers to determine the optimal facility for collaboration and service as a PPP. Using this model, a decision-maker can select the highest-ranking facility or use the fluctuation ranking graph to determine a priority list of candidate facilities according to the appropriate PPP service distance. Our findings suggest that the optimal candidate facility should be located near high population density areas, a dense road network, and few geographic barriers. The facility should have a high attractiveness value, long business hours, and convenient access to public transportation, cover a large, high-population area, and should be a retail chain store. Based on these findings, the AHP method can improve the accuracy of obtaining the facility attractiveness value using the Huff model. Facility attractiveness has a strong effect on the resulting number of customers in the case of acceptably long distances to residential buildings.

Fuels sales through retail chains and their store traffics and revenue

2019 ◽  
Vol 31 (1) ◽  
pp. 2-13
Author(s):  
Hojin Jung ◽  
Kyoung-min Kwon ◽  
Gun Jea Yu
Keyword(s):  
Empirical Evidence ◽  
Firm Value ◽  
Negative Impact ◽  
Consumer Welfare ◽  
Chain Store ◽  
Marketing Practice ◽  
Content Type ◽  
Retail Chain ◽  
Long Run ◽  
Short Run

PurposeUsing panel data on gasoline and grocery transactions in Korea, the purpose of this paper is to empirically explore the effect of a retail chain store’s establishment of on-site fuel sales. The empirical analyses present strong empirical evidence that the sale of fuel had statistically and economically significant effect on retail store traffic and revenue in the short run. However, the effect did not remain significant in the longer run. To explain the dramatic decrease in the effect of the fuel sale, the authors consider the enhanced competition in the local gasoline retail industry and examine cross-sectional price variations at the station level. The results suggest that the increased competition led to the reduction in the price dispersion across stations and thereby to an increase in consumer welfare.Design/methodology/approachUsing a linear specification that has traditionally been used to model retail chain data, the authors developed a series of difference-in-differences models. This technique is ideal for estimating the effect of a treatment in the presence of possible selection bias and has been widely employed in many social-science studies on policy intervention.FindingsIn a certain environment, introducing fuel sales did not increase retail chain store traffic or revenue in the long run, despite having statistically and economically significant effects in the short run. The results document empirical evidence of myopic management in a common marketing practice, which often leads to a negative impact on the firm value in the long run.Research limitations/implicationsThe span of data and sample size were limited to meet the company’s data protection policy.Practical implicationsConsidering that many of developed countries are characterized by a gasoline retail environment similar to that which is investigated in this paper, the authors believe that the implications of the results are particularly valid for practitioners and policy makers.Social implicationsThe findings document empirical evidence of myopic management in a common marketing practice, which often leads to a negative impact on the firm value in the long run. Marketing researchers should make efforts in establishing metrics to help identify myopic management decision.Originality/valueThis paper addresses an interesting and practical issue related to the effects of the introduction of gasoline sales by a supercenter store on its store traffic.

Estimating Substitution and Basket Effects in Retail Stores: Implications for Assortment Planning

2021 ◽  
Author(s):  
Vidya Mani ◽  
Douglas J. Thomas ◽  
Saurabh Bansal
Keyword(s):  
Operations Management ◽  
Service Level ◽  
Substitution Effects ◽  
Demand Model ◽  
Product Availability ◽  
Retail Chain ◽  
Purchase Incidence ◽  
Out Of Sample ◽  
Mnl Model ◽  
Absolute Percent Error

Many retailers are reducing store footprint and downsizing their assortments accordingly to improve store productivity. Some of the revenue for items removed from the assortment may be recouped by substitution, but also some of the revenue for items kept in the assortment may be lost due to basket abandonment. For a practical setting where baskets may contain any subset of items from thousands of products, estimating both substitution and basket effects is a challenge. To address this, we develop a demand model that combines a multinomial logit (MNL) model to estimate substitution within a subcategory and a purchase-incidence model to estimate basket retention. Using transaction and product availability data from 12 stores of an office supplies retail chain that were dramatically downsized from large- to small-format stores, we show that (i) storewide basket effects are substantial (our model with basket effects predicts out-of-sample transactions with mean absolute percent error (MAPE) of only 7% compared with 22% for a model with only substitution effects), (ii) poor service level can significantly exacerbate lost profit due to abandoned baskets at these stores, and (iii) consideration of the basket effect in assortment selection for the small stores can significantly improve basket retention and increase profits (by up to 16%) at these stores. This paper was accepted by Vishal Gaur, operations management.

Chain store retailing in Ireland: a case study of F.W. Woolworth & Co. Ltd, 1914-2008

2014 ◽  
Vol 6 (1) ◽  
pp. 98-115 ◽  
Author(s):  
Barbara Walsh
Keyword(s):  
Twentieth Century ◽  
Building Blocks ◽  
Chain Store ◽  
Content Type ◽  
Secondary Sources ◽  
Retail Chain ◽  
Marketing Systems ◽  
Urban Rural ◽  
History Of ◽  
Customer Profiles

Purpose – The purpose of this paper is to present a view of how a retail chain store and its marketing strategies impacted on shopping habits in twentieth century Ireland. Design/methodology/approach – Primary and secondary sources include company documents, oral history and press reports. Background social, political and economic factors are considered in conjunction with the methods this firm used to build customer-driven managed marketing systems and teams of good staff relationships. Findings – Woolworth's Irish stores responded to changing tastes and needs of consumers throughout Ireland. The Irish market required skilful techniques to overcome widening divisions within customer profiles to accommodate increasing north-south and urban-rural patterns. Welcomed by shoppers of all ages and genders, this firm's contribution to Ireland's retailing and wider commercial scene was innovative, popular, flexible and influential. Originality/value – The overview of this well-known retail chain store's experience in twentieth century Ireland can provide scholars with building blocks on which to expand knowledge and develop further understanding of a largely un-tapped field of research within the history of marketing in Ireland.

scholarly journals Discrimination against customers by retail chain stores and the impact of the law

2014 ◽  
Vol 8 (2) ◽  
pp. 129-139
Author(s):  
K Reddy
Keyword(s):  
Customer Service ◽  
Chain Store ◽  
Literature Study ◽  
Disadvantaged Area ◽  
Chain Stores ◽  
Customer Perceptions ◽  
Retail Chain ◽  
Or Groups ◽  
South African Constitution ◽  
The Impact

Profit and other related objectives of business emphasise the need to distinguish between different customers or groups of customers. The South African Constitution, on the other hand, specifically prohibits unfair discrimination. This paper examines the legal principle of non-discrimination, as set out in the Constitution and the Equality Act, as well as the impact that these provisions have on discrimination against customers. The literature study shows that there is a legal obligation on business to ensure the provision of equitable customer service. An exploratory study was conducted among the customers of retail chain store outlets in Clermont, a historically disadvantaged area, to identify examples of differentiated treatment of customers by retail chain stores. Customer perceptions have in fact shown areas of differentiation which could be viewed as unfair discrimination unless justified

scholarly journals Optimization model for materials expedition: an aplication in a retail chain store

2016 ◽  
Vol 7 (5) ◽  
pp. 627
Author(s):  
Rogério Santos Cruz ◽  
Elder Rodrigues Viana ◽  
Adriano Maniçoba da Silva ◽  
Alcir Das Neves Gomes
Keyword(s):  
Optimization Model ◽  
Transportation Problem ◽  
Transport Model ◽  
Chain Store ◽  
Distribution Planning ◽  
Retail Chain ◽  
Part Logistics ◽  
Important Activity

In several companies, transportation costs are most part logistics costs. In this context, the appropriate distribution planning figures as a strategic activity in the generation of competitiveness. Previous studies that analyzed the transportation problem do not consider the role of the expedition in their models. This research investigated a transportation problem considering the expedition of goods. A midsize retailer located in the ABC region of Sao Paulo was used to conduct a case study. In addition to documentary data, interviews were conducted with professionals involved in the expedition operation. The results indicated that the company could optimize their expedition by considering the changes proposed in this study. We conclude that the expedition is an important activity in the analysis of a transport model.

Managerial autonomy and control at a retail chain store

2019 ◽  
Vol 19 (1) ◽  
pp. 47
Author(s):  
Esa Hiltunen ◽  
Saara Julkunen ◽  
Teuvo Kantanen
Keyword(s):  
Chain Store ◽  
Retail Chain ◽  
And Control
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