Factors Affecting Market Share of Retailers

15007 Words Apr 18th, 2013 61 Pages
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.
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This form of retailing faces problems of small capital lack of professionalism and low purchasing power (http://www.google co.ke).
According to levy and Weitz (1996) retailing operation is an everyday life which retail managers must make complex decisions in developing strategies, locating stores, determining what Merchandise and service to offer and deciding how to price, promotion and display Merchandise.

1.2 Statement of the Problem
Small scale retailers have restricted scale of operation to small segment of the market and to a narrow range of products. They have a direct and personal contact with their customers. They have done a lot in terms of customers services deliver but there was still a gap as most of these retailers don’t know the factors that make customers to prefer buying in their stores. However, many consumer packaged goods face competition among product of different quality was a symmetric. Price promotion by higher-quality brands draw disproportionately more market share from lower quality brands. Competitive pressure from internet and ability of consumers to make price comparisons across outlets are helping pull price downwards in the market. If these problems are not solved then the SSR will eventually lose the market shares. This research help SSR since the research findings and recommendation enables them discover what affects their market share and help the relevant governmental agencies
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