Using word of mouth data from social media to identify asymmetric competition in food retailing

Lena-Christin Jaeger,Julia Höhler

doi:10.1016/j.jretconser.2020.102284

Lena-Christin Jaeger, Julia Höhler

Open Access

https://doi.org/10.1016/j.jretconser.2020.102284

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Abstract

Competition between food retailers is often assumed to be asymmetrical, whereby one retailer may compete with another retailer but not vice versa. Little is known about how (a)symmetric competition among retailers currently is. One way to investigate this is to use word of mouth data. A mixed methods analysis of customer comments on social media confirms the existence of asymmetric competition among German food retailers, mainly between supermarkets and discounters. Overall, consumers compare competitors frequently on the basis of their assortments, the price-performance ratio as well as quality and freshness. The results have implications for competition policy and strategic management.

Highlights

German food retailing has been undergoing a strong process of concentration
While the existing body of research suggests that asymmetric competition exists especially between store formats (CLEEREN et al, 2010; GIJSBRECHTS et al, 2008; GONZÁLEZ-BENITO et al, 2005), strategies such as the listing of branded products by discounters are a sign that the competition between formats has changed in recent times (CARDINALI and BELLINI, 2014; GERMAN RETAIL BLOG, 2012)
We show how data from social media can be used to investigate asymmetric competition in the food retail sector

Summary

Introduction

German food retailing has been undergoing a strong process of concentration. The four largest retail chains, measured in terms of sales, share over 85% of the market (BUNDESKARTELLAMT, 2018). Keywords Word of Mouth, Consumer Behavior, Content Analysis, Asymmetric Competition, Food Retail. German food retailing has been undergoing a strong process of concentration. While the existing body of research suggests that asymmetric competition exists especially between store formats (CLEEREN et al, 2010; GIJSBRECHTS et al, 2008; GONZÁLEZ-BENITO et al, 2005), strategies such as the listing of branded products by discounters are a sign that the competition between formats has changed in recent times (CARDINALI and BELLINI, 2014; GERMAN RETAIL BLOG, 2012).

Results

Conclusion