Title: Store patronage and retail competition in emerging markets

Authors: Edgard Barki; Felipe Zambaldi; Carlos Eduardo Lourenço; Cristiano do Amaral Britto De Castro

Addresses: Business Administration School of Sao Paulo, Getulio Vargas Foundation (FGV-EAESP), Rua Itapeva, 474, 01332-000, Sao Paulo, SP, Brazil ' Business Administration School of Sao Paulo, Getulio Vargas Foundation (FGV-EAESP), Rua Itapeva, 474, 01332-000, Sao Paulo, SP, Brazil ' Business Administration School of Sao Paulo, Getulio Vargas Foundation (FGV-EAESP), Rua Itapeva, 474, 01332-000, Sao Paulo, SP, Brazil ' Business Administration School of Sao Paulo, Getulio Vargas Foundation (FGV-EAESP), Rua Itapeva, 474, 01332-000, Sao Paulo, SP, Brazil

Abstract: Large and local retailers' competition for customer patronage in emerging markets has received limited attention. One main discussion when analysing emerging markets is the role of large retailers and local companies. In many situations small retailers are the only option for consumers, as large retailers have not reached low-income communities. In the Brazilian context, data from two locations with different profiles has been analysed using the Bayesian estimation probit to determine store patronage. Results show that local retailers have a competitive advantage based on functional and emotional attributes.

Keywords: emotional benefits; functional benefits; low-income communities; store patronage; Brazil; retail competition; emerging markets; Bayesian estimation probit; local retailers; retail stores.

DOI: 10.1504/IJBSR.2016.073690

International Journal of Business and Systems Research, 2016 Vol.10 No.1, pp.62 - 77

Received: 24 Feb 2015
Accepted: 16 Sep 2015
Published online: 15 Dec 2015 *

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