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Three major theories are to be recognized as primary retail evolution theories: (1) The Environmental theory, (2) The Cyclical theory, and (3) The Conflict theory (Brown, 1987). These theories are united by the basic premise that an external force (e.g., environment, conflict) can cause a retail institution type to evolve and to change into a new institution type or as a result of need, conflict or other forces, a new institution type can emerge.
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Concise annotation of the given article
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Download file "Concise annotation of the given article" to see previous pages... The life cycle concept applied to products and stores (Davidson, Bates, and Bass, 1976) executed a significant study that defined the concept of the retail life cycle. Prior to that, the key explanation for retail development was the wheel of retailing concept.
The main assumption in Brown's (1991) retailing theory is that businesses usually start with low service / low price product mixes.
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The main motivation for shopping on this initial stage is price. As the "wheel" revolves, and it usually does, the stores start adding more services (such as credit, sales-support staff, display, etc.) When this happens, the store does not attract the consumers who buy based on price any more. The store then becomes full service and supports higher prices.
Stephen Brown's article is a highly academic piece of work. This valuable theoretical research around the topic of retail change and evolution of retail institutions is deeply credible, regarding the author's background. Brown is professor of Marketing Research at the University of Ulster, Newtownabbey, situated in Northern Ireland. ...Download file "Concise annotation of the given article" to see next pagesRead More
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