Factors Affecting Market Share of Retailers
CHAPTER ONE
1.0 INTRODUCTION
This chapter entails the background, the statement of the problem, objective of the study research questions, the significance of the study, the limitation of the study and the scope of the study.
1.1 Background of the Study
(Levy and Weitz 2009) defines that “retailer” is a business that sells products and/or services to consumers for their personal or family use. Retailers are the final business in a supply chain that links manufacture to consumers.
According to Kotler and Armstrong (2006) a retailer is a business whose sales come primarily from retailing. Although most retailing is done in retail stores, in recent year’s non stores retailing has been growing much faster than has store retailing. Non store retailing include catalogs, telephone interest, TV home shopping shows, home and office parties, door-to-door contact, vending machines and other direct selling approaches. Retailers offer assortment of a product, but they specialize in the assortments they offer. Most customers are well aware of the product assortments retailers’ offer. Supermarkets are the most frequently shopped type of retail store, offering this broad assortment enables customers to buy a wide selection of brands, designs, sizes, colors and prices in one location. Researchers worldwide have appreciated the role played by small scale retailers to the society and the development of the society as a whole.
According to Berkowitz (1997), Market share is the ratio of the firm’s sales revenues or unit sales to those of the industry (competitors plus the firm itself). Companies often pursue a market share objectives when industry sales are flat or declining and they want to get a larger share. Anheuser Busch has adopted these objectives in the brewing industry. According to August A. Busch III, the company’s chief executive officer “we want 50 percent of the (beer) market in the mid-1990s” Although increased market share is a primary goals of some
1.0 INTRODUCTION
This chapter entails the background, the statement of the problem, objective of the study research questions, the significance of the study, the limitation of the study and the scope of the study.
1.1 Background of the Study
(Levy and Weitz 2009) defines that “retailer” is a business that sells products and/or services to consumers for their personal or family use. Retailers are the final business in a supply chain that links manufacture to consumers.
According to Kotler and Armstrong (2006) a retailer is a business whose sales come primarily from retailing. Although most retailing is done in retail stores, in recent year’s non stores retailing has been growing much faster than has store retailing. Non store retailing include catalogs, telephone interest, TV home shopping shows, home and office parties, door-to-door contact, vending machines and other direct selling approaches. Retailers offer assortment of a product, but they specialize in the assortments they offer. Most customers are well aware of the product assortments retailers’ offer. Supermarkets are the most frequently shopped type of retail store, offering this broad assortment enables customers to buy a wide selection of brands, designs, sizes, colors and prices in one location. Researchers worldwide have appreciated the role played by small scale retailers to the society and the development of the society as a whole.
According to Berkowitz (1997), Market share is the ratio of the firm’s sales revenues or unit sales to those of the industry (competitors plus the firm itself). Companies often pursue a market share objectives when industry sales are flat or declining and they want to get a larger share. Anheuser Busch has adopted these objectives in the brewing industry. According to August A. Busch III, the company’s chief executive officer “we want 50 percent of the (beer) market in the mid-1990s” Although increased market share is a primary goals of some