Buy custom Empirical Analysis Of Competition Between Wal-Mart And Other Retail Channels
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| Topic: |
Business
|
| Number of pages / Number of words: |
49 / 13478 |
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retail spending2. Its reach extends into almost every
major U.S. consumer-products company; Wal-Mart is also “Hollywood's biggest outlet, accounting for 15% to 20% of all sales of CDs, videos, and DVDs.â€3
What attracts consumers to Wal-Mart? Does Wal-Mart maintain an advantage in the retail sector solely due to lower prices, increased proximity, or the convenience of one-stop shopping? This paper examines the source of the Wal-Mart advantage by investigating the nature
of retail competition...
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To uncover a consumer’s preferences over Wal-Mart, I estimate a model of consumer choice over stores that controls for differences in prices and locations across stores within the consumer’s choice set. My discrete choice model allows for unobserved heterogeneity
in consumers’ tastes over different store types, since the extent to how people feel about Wal- Mart will depend upon substitution patterns across different store types – mass merchants,
1 Business Week Online, “Is Wal-Mart Too Powerful?â€, October 6, 2003...
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