TO THE PROBLEMS OF RETAIL PRICE COMPETITION IN THE CONDITIONS OF WAR
Journal: International scientific journal "Internauka." Series: "Economic Sciences" (Vol.1, No. 75)Publication Date: 2023-07-31
Authors : Tkachuk Andrii; Kryveshko Olga;
Page : 148-155
Keywords : chain retail; small retail; convenience store; price; purchase price; selling price; competition; price competition; competitive advantage on price; trade costs;
Abstract
The article examines the peculiarities of competition in the domestic retail market. The most important factor in the buyer's choice of a trading point in wartime is the price level, the main emphasis is placed on the factors of price competition. To understand the peculiarities of the functioning of domestic retail, the evolution of the Ukrainian retail market, the origin and development of price competition on it was analyzed. The theoretical foundations of pricing in retail trade are considered. In particular the essence of price competition and its main manifestations are determined. Types of pricing methods are considered. It is noted that the main method used by the retail trade is the markup method. This method has been analyzed. The main factors affecting the ability of retail to participate in price wars are determined. In particular, they include the purchase price, taxation features, sales volume, volume of expenses other than purchase price, flexibility of trade markups. The mentioned factors were analyzed. During the war, the influence of these factors are changed. The small stores got the chance to grow while the chaine retail recovers from loss and damage. In particular, the difference between the terms of cooperation with suppliers for small stores and chain retail has decreased. The tax advantages for small entrepreneurs are remaining still. Even in conditions of higher purchase prices, small businesses have lower additional costs associated with marketing and maintaining additional staff. It was concluded that both chain retailers and small retailers have price advantages that enable them to compete successfully on the market. The main reason for the failure of small businesses is the fear of experimenting with trade mark-ups and the correct choice of the location of stores. Martial law and war conditions gives small retail an opportunity to compete with big business. This opportunity is temporary and will disappear in the post-war period. So traditional convenience stores got the short-term opportunity to get a market niche and develop. They have use it. Otherwise, it will be difficult for them to survive in the post-war period.
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