Retail Strategy and the Classification of Consumer Goods

Abstract

What guides are available to aid the retailer in developing his marketing strategy? The author shows how the traditional concepts of shopping, convenience, and specialty goods may be updated and integrated with the idea of patronage motives, and how they provide the retailer with a new means of evaluating his strategy.

Consumer learning and its impact on store format selection

“…Whereas the H&S model arguably applies to both product and store learning, fundamental conceptual ground for their interplay can be derived from a classic article by Bucklin (1963). In this paper he developed the idea that just as consumers may possess preferences for goods or services, they may possess preferences for outlets.…”

A model of retail format competition for non-durable goods

“…In a path breaking paper written by Bucklin (1963), all stores were classified as convenience, shopping or specialty stores, depending upon whether they retailed convenience, shopping, or specialty goods. At the other extreme are studies by Krider and Weinberg (1998), Lal and Rao (1997), etc., that assume a complete overlap of assortments between formats.…”

Retail market structure scenarios and their strategic applications

“…However, the impact of distance on shoppers' patronage decisions depends on the type of product or service and numerous other factors (Brown 1989;Bucklin 1963;Nevin and Houston 1980;Northam 1979;Sewall 1976, 1978). T o the extent that distance is salient and prospective customers are widely dispersed throughout the market area, the locus of a retailing establishment becomes a basis for meaningful (and virtually inevitable) differentiation, and the number of stores required to satisf) shoppers increases.…”