Abstract This paper puts forward a new retail format model based on the formats’ price differences by utilizing the concept of consumers’ preferences, which illustrates the interaction between retail service, retail price and retail cost. This model testifies the technical boundary curves theory which emphasizes the importance of technical progress for retail formats innovation. In addition, we find that the consumers’ preferences and cost control are key factors for the formats innovation. The household electrical appliances retail formats in China proves the analysis. The model provides a quantitative tool and a new point for the future retail formats research.
Key words: retail formats; formats’ price differences; the technical boundary curves; consumers’ preferences
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Received: 31 December 2010
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Corresponding Authors:
Jian Shen
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