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Supermarket shopping adoption and the modernization of food retailing : theory, method and application

Authors Goldman, Arieh
Ramaswami, Seshan
Krider, Robert E.
Issue Date 1999-03
Source Marketing Working Paper Series ; MKTG 99.134
Summary The study of food retail modernization is especially relevant at this time, given the recent expansion of multinational food retailers into emerging economies, particularly Asia. We review previous research on the transition of food retailing from traditional systems to modern ones dominated by supermarkets, and integrate differing accounts of the process of supermarket adoption into a parsimonious framework. Three separate phenomena comprise this framework: spatial diffusion, socio-economic diffusion, and product category-dependent diffusion. We propose a method based on consumers' food shopping behavior, which allows us to quantify the impact of each of these processes in limiting supermarket market share at a point in time in any specific retail system. We demonstrate our method by analyzing the state of modernization of the food retail system of Hong Kong, and find that product category-dependent diffusion is the major restriction to further supermarket expansion in Hong Kong. We discuss the ways in which our framework and method could be generalized to study other retail situations where retail formats or classes of formats compete for market share.
Language English
Format Working paper
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