6 research outputs found
Small-Town Merchants are Not Using the Recommended Strategies to Compete Against Nationial Discount Chains: A Prescriptive Vs. Descriptive Study
The research question was: do small retailers use the strategies prescribed in the literature for them to compete with the large retail chains? Descriptive survey results of 62 small business owner personal interviews indicate that they do not use three of the four prescribed marketing strategies to compete with the large general merchandise discount store chains. Respondents were asked if they adjusted strategies after the major retailer moved in; 52% did not adjust product, 42% maintained the same price strategy, 21% did increase service strategy, and 50% did not alter promotion strategy. The findings revealed that 34% expanded their product line, with only 10% reducing their product line. Although not recommended, 37% actually dropped prices to compete. However, 77% did place a greater emphasis on service. Assessing the impact of these changes on financial performance, 58% indicated that their sales and profit margins had remained satisfactory over a 5-year period of measurement and a third (32%) had mixed results during the same time period