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The effects of retailers' assortment and price differentiation on grocery shopping
Abstract
Understanding the competitive behavior of food retailers has become increasingly important as the number of firms in the food industry decreases. This study examines retail competition by operationalizing the price and assortment differentiation existing between supermarkets within an urban market and the effect of this differentiation upon the aggregate behavior of households. A model of consumer behavior and retailer attractiveness is developed which attributes differentiation to the spatial distribution of stores and household characteristics within the market. The patronage patterns which result from retail differentiation are also hypothesized. Structural equation modeling of latent constructs is used to analyze the hypothesized relationships. Results show that immediate competitors avoid price competition and differentiate their assortments. Consumers were found to respond by dividing their patronage between stores with greater assortments overlap.
Subject Area
Marketing|Geography|Economics
Recommended Citation
Stassen, Robert Earl, "The effects of retailers' assortment and price differentiation on grocery shopping" (1989). ETD collection for University of Nebraska-Lincoln. AAI9019584.
https://digitalcommons.unl.edu/dissertations/AAI9019584