카테고리 킬러와의 경쟁에 대한 대응 전략: 설득형 촉진활동을 중심으로

초록

This research investigates optimal promotion strategies for a high-cost retailer, such as a department store, to deal with competition with a category killer selling a limited number of product categories with a cost advantage. For this research objective, we develop a game theory model composed of two competing high-cost retailers (Retailer A and B) and a category killer (Retailer C) which enters later a market by locating at the same location of one of the high-cost retailers (Retailer A). Specifically, we focus on high-cost retailers’ persuasive promotional activities such as advertising for developing a premium brand image and examine how the retailers’ strategic decisions differ between before and after the entry of the category killer. Our analysis shows that increasing persuasive promotion may not be always the best strategy for the high-cost retailer facing the entry of the category killer and, instead, she can be better off by reducing the persuasive promotion level and focusing on price competition under certain conditions as shown in the below figure. However, our results also suggest that when two competing high-cost retailers are not sufficiently differentiated and competitive intensity is high between them, the high-cost retailer (Retailer A) located close to the category killer and benefiting from an agglomeration effect may obtain larger profits after the entry than before by increasing persuasive promotion. and errors which may decrease comparability and usefulness. The results of this study examining competition between different retail formats varying in both variety of product category and a cost structure can be applicable to not only the competition between a category killer and a department store but also the competition between a hard discounter and a traditional supermarket. Furthermore, our main results provide useful insights for retail managers designing broad marketing activities that influence consumers' perception and attitude toward a retailer's brand and establish a strong brand image in consumers' mind. Those marketing activities include not only persuasive promotion but also a retailer's offering various in-store services. Thus, our results provide useful insights for marketing managers working for these types of retailers.

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