Brand-size complementarity in the choice of retail stores

Hyoung-Goo Kang, Hailey Hayeon Joo and Janghee Cho

Applied Economics Letters, 2014, vol. 21, issue 6, 413-416

Abstract: Shopping patterns of consumers vary as the level of size and brand of stores change jointly or separately. Brand and size can be either complementary or substitutable with respect to consumers' shopping characteristics. They are complementary to spending per visit, or brand magnifies the positive effect of size to spending per visit. Weekend consumers also tend to view size and brand complementary, which is so strong that there exists polarized shopping at either large nationwide brand or small unbranded stores during weekend. Car owners exhibit very similar patterns as weekend consumers. On the other hand, substitutability exists to explain shopping frequency. This effect is so high as to generate the polarized pattern; shopping frequency is high with regard to small nationwide brand and large unbranded stores. Substitution patterns also arise for working women, people older than 50, and high-income consumers.

Date: 2014
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DOI: 10.1080/13504851.2013.864026

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