Biases in demand analysis due to variation in retail distribution

Aggregate demand models typically assume that consumers choose between all available products. Since consumers may be unwilling to search across every store in a given market for a particular item, this assumption is problematic when product assortments vary across stores. Using supermarket scanner data for five product categories we demonstrate that approximately one third of products have limited retail distribution, which account for one fourth of dollar sales. Monte Carlo analysis demonstrates that the level of limited product availability observed in the data can significantly bias the results of aggregate demand models that incorrectly assume all consumers in a given market face the same choice set.     

大数据背景下零售经营要素变革研究

零售业是大数据应用最广泛的和深入的行业,大数据带来的信息革命改变了消费者的消费行为与方式,营造了全新的营销环境。大数据技术的快速发展为零售企业深刻认识和把握消费行为与市场需求提供了新的工具、方式和视角。文章阐述了大数据及其与零售业之间的关系,分析了消费者主权时代消费行为的新特征,指出消费者成为商业价值链的主导者,变得更理性、更注重个性化、对消费体验提出了更高要求。因此,在全新的营销环境中,零售企业必须回归零售业本质,以终端消费者主导为中心,运用大数据技术,围绕目标顾客定位、店址选择、商品管理、定价策略、促销管理、商品陈列和供应链等零售经营要素进行变革。     

Has the productivity of retail food stores really declined?

Despite the fact that other factors of production have been substituted for labor, and that scanner technology has come into widespread use, the BLS index of labor productivity for retail food stores has been declining for sometime. The purpose of this paper is to study this puzzling decline in measured productivity. The results indicate that the decline in the BLS index is due to changes in services offered by retail food stores that are not incorporated into the index, and that productivity increased if these services are accounted for.     

The 99 price ending as a signal of a low-price appeal

There is evidence that the rightmost digits, or endings, of retail prices can communicate meanings to consumers. To better understand how such meanings are formed, this paper addresses the question of how the 99 price ending can have a low-price meaning even though 99-ending prices tend to be higher rather than lower competitive prices. Analysis of two large samples of newspaper price advertising indicates that there is a strong and robust correlation between the use of the 99 price ending and the presence of a low-price appeal such as a claimed discount. It is suggested that the salience of price advertising leads it to dominate other sources of information in the consumer's learning of price-ending meanings.     

Asymmetric competition in retail store formats: Evaluating inter- and intra-format spatial effects

Our study aims to analyze the role of store format in retail competitive interactions, specifically, the relationship between growth, location strategy, and market response. To assess this relationship, we propose an extension of the classic models of spatial interaction, which incorporate the asymmetric competitive effects linked to the concept of store format. An empirical application allows us to confirm greater spatial rivalry within store formats (intra-format) than between store formats (inter-format). This implies a certain hierarchical organization when consumers select a retail store, first choosing the type of store at which they will shop and later a particular store within this format. The results are important for retailers who want to configure an optimal network of store locations as well as public administrators who must regulate commercial activity.     

中国内外资零售企业竞争态势比较分析

本文以限额以上零售企业为样本，采用静态比较分析的方法，从基本情况、财务结构、盈利能力和工资福利等方面进行比较和分析。以探求当前我国内、外资零售企业的真实竞争状况和动向，并对我国内资零售企业如何把握和参与竞争提出相关建议。最后指出零售业自由化和全球化的最终赢家是PK台下的观众：中国的消费者和老百姓。     

Allocating a hybrid retailer's assortment across retail stores: Bricks-and-mortar vs online

This paper develops an IP model to determine item allocation for a hybrid retailer's store network, comprising bricks-and-mortar and online stores. Products with low carrying costs are distributed between the bricks-and-mortar stores and the online store. Products with high carrying costs can be withdrawn from the bricks-and-mortar stores and made available exclusively at the online store where the inventory carrying costs are comparatively lower. This strategy assists the hybrid retailer to not only improve the profitability of its bricks- and-mortar stores but also to retain the custom of the market segment that is loyal to the items withdrawn from the traditional stores. In this framework, the online channel complements rather than competes with traditional channels. This model is used to conduct an extensive simulation study to analyze the impact of important business factors on system profitability.     

Factors affecting Indian shoppers׳ attitude and purchase intention: An empirical check

The objective of this study was to examine affecting factors that influence Indian consumers׳ attitude toward retailers and purchase intention from the retailers. A questionnaire was used to collect data using systematic sampling from department store shoppers of age 18 years and above in Kolkata, a metropolitan city of India. Structural equation modelling (n=355) was used to examine the impact of affecting factors on consumers׳ attitude toward retailers and the impact of consumers׳ attitude toward retailers on purchase intention. Results indicated that the factors namely self-congruity, retailer awareness, retailer associations and retailer perceived quality have significant positive impacts on consumer׳s attitude toward retailers. The results also indicated that consumers׳ attitude toward retailers positively influences purchase intention. Arguably, this paper was the first to explore such linkages between the affecting factors that influence consumers׳ attitude toward retailers and purchase intention in Indian context.     

Deviant behavior in retail,when sales associates “Go Bad”! Examining the relationship between the work–family interface,job stress,and salesperson deviance

The unique role of retail sales associates combined with retailers desire to establish relational selling, make associates vulnerable to work–family conflict (WFC). Unfortunately, research examining how retail sales associates cope with a WFC is limited. This research investigates relationships between WFC, job stress, and three dimensions of salesperson deviance: organizational, interpersonal, and frontline. Findings indicate that WFC has a significant direct effect on all three deviant behaviors, as well as job stress. Interestingly, the relationship between job stress and deviant behavior is not significant. This finding adds to the debate regarding job stress as a mediator between WFC and deviant behavior or outcome variable.     

Applicability of the M5 to Forecasting at Walmart

The M5 Forecasting Competition, the fifth in the series of forecasting competitions organized by Professor Spyros Makridakis and the Makridakis Open Forecasting Center at the University of Nicosia, was an extremely successful event. This competition focused on both the accuracy and uncertainty of forecasts and leveraged actual historical sales data provided by Walmart. This has led to the M5 being a unique competition that closely parallels the difficulties and challenges associated with industrial applications of forecasting. Like its precursor the M4, many interesting ideas came from the results of the M5 competition which will continue to push forecasting in new directions.In this article we discuss four topics around the practitioners view of the application of the competition and its results to the actual problems we face. First, we examine the data provided and how it relates to common difficulties practitioners must overcome. Secondly, we review the relevance of the accuracy and uncertainty metrics associated with the competition. Third, we discuss the leading solutions and their implications to forecasting at a company like Walmart. We then close with thoughts about a future M6 competition and further enhancements that can be explored.