Hard economic times: a dream for discounters | Zendy

Lien Lamey | Zendy

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Hard economic times: a dream for discounters

Author(s) -

Lien Lamey

Publication year - 2014

Publication title -

european journal of marketing

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 1.199

H-Index - 100

eISSN - 1758-7123

pISSN - 0309-0566

DOI - 10.1108/ejm-01-2011-0010

Subject(s) - popularity , market share , business , vertical restraints , economics , marketing , microeconomics , psychology , social psychology , incentive

Purpose – The aim of this paper is to study the relationship between the popularity of discount stores and the aggregate business cycle: Does discounters' market share go up during economic contractions and go down during economic expansions? Does the aggregate business cycle contribute to the long-term growth of discounters' success? Does the relationship between discounters and the economy differ across discounter types, namely hard versus soft discounters? Design/methodology/approach – The study will consider the relationship between discounters' market share and the aggregate economy between 1991 and 2008 for 15 Western European countries. Moreover, aggregated data is provided for the Western European region as a whole, which distinguishes hard from soft discounters' share. Recent time-series techniques are used to disentangle the temporary versus permanent effects of economic contractions on discounters' share. Findings – The aggregate business cycle induces temporary upward and downward swings in di...

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