Retailing industry has undergone tremendous change in its complexity and sophistication over the past few years. Globally we are witnessing the evolution of retailing industry from traditionally micro-managed small retail formats like mom and pop store to modern corporate-managed large retail formats like supermarkets. Consumers are also shopping across these various store formats even for the products in similar categories. In this research, we posit that consumer purchases in the similar categories may very well be characterized by differential responses to marketing mix across different store formats. The proposed model accounts for the influences that these diverse response parameters and preferences have on one another as well as consumer heterogeneity. Our results show that sensitivities to marketing mix as well as correlations in preferences do indeed vary across formats for consumer purchases in similar categories.
Keywords: Store format choice, Consumer sensitivity, Multivariate probit, Retailing, Multi-category model
- Authors: Ashish Kumar, Minakshi Trivedi, Ram Bezawada, and Karthik Sridhar
- Journal: Journal of Retailing and Consumer Services
- Year: 2012
- Volume: 19
- Issue: 6
- Pages: 561-569
- DOI: https://doi.org/10.1016/j.jretconser.2012.07.001
Citations: 8 (Till: 2026-05-29) (using R package rcrossref)
Recent: Google Scholar