Title: Close encounter with the hard discounter: A multiple-store shopping perspective on the impact of local hard-discounter entry
Authors: Vroegrijk, Mark ×
Gijsbrechts, Els
Campo, Katia #
Issue Date: Oct-2013
Publisher: American Marketing Association
Series Title: Journal of Marketing Research vol:50 issue:5 pages:606-626
Abstract: “Hard-discounters” have become a considerable force within grocery retailing. With rock-bottom prices and minimal assortments, they strongly differ from “large-discounters” like Wal-Mart, and constitute complements rather than substitutes for more traditional supermarkets. Hence, we propose that their impact-of-entry on local incumbents is very different as well. Using a store choice and spending model that explicitly accounts for inter-store synergies and “multiple-store shopping” behavior, we study consumer responses to 194 hard-discounter openings. While we find that hard-discounters, like large-discounters, especially appeal to private label-prone shoppers and lead to sizable incumbent losses, the results confirm that the nature of these losses is strikingly different. First, hard-discounters do not make incumbent chains lose their best customers but, rather, shoppers who already visited other chains alongside the incumbent. Second, we find that chains located in close proximity of new hard-discounters do not suffer more from their entry. Third, losses are lower for upscale chains and incumbents that strongly complement the hard-discounter. Implications for proper response to hard-discounter entry are discussed.
ISSN: 0022-2437
Publication status: published
KU Leuven publication type: IT
Appears in Collections:Research Centre for Marketing and Consumer Science, Leuven
Faculty of Economics and Business (FEB), Campus Carolus Antwerp - miscellaneous
Department of Marketing Management, Campus Carolus Antwerp
Faculty of Economics and Business (FEB) - miscellaneous
× corresponding author
# (joint) last author

Files in This Item:
File Description Status SizeFormat
jmr.11.0312.pdf Published 377KbAdobe PDFView/Open Request a copy

These files are only available to some KU Leuven Association staff members


All items in Lirias are protected by copyright, with all rights reserved.

© Web of science