Article ID: | iaor201524583 |
Volume: | 31 |
Issue: | 3 |
Start Page Number: | 589 |
End Page Number: | 603 |
Publication Date: | Sep 2009 |
Journal: | Review of Agricultural Economics |
Authors: | Amanor-Boadu Vincent |
Keywords: | home shopping, rural affairs |
Although the challenges facing rural retailers have been attributed to competition and decreasing population, this paper defines the problem from rural consumers' perspective. It argues that consumers select shopping location on its shopping value, determined by its attractiveness and accessibility. The results indicate that locations closest to the consumer's residence offer the highest shopping value for groceries and other low‐order goods. They also show that increasing gasoline prices favor local retailers. Rural retailers may use these results to implement differentiating strategies that increase their attractiveness, accessibility, and consequently their competitiveness.