Retail Service Research Articles

Popularity prediction and optimal location: Application to restaurants

We consider the location problem for retail service facilities, consumer-facing storefronts that provide a service and compete with other retailers to some degree or the other. Location is one of the most important strategic decisions for a retail firm. It is a risky and often an irrevocable decision, in the sense that it involves a large investment, is very difficult to rectify, and affects profits and operations for many years in the future. This problem is especially challenging for the following reasons: (i) Location models require estimates of how demand will expand and shift when we locate a new facility, but the firm, since it has not yet started operations, has no historical demand data to calibrate the models; (ii) Future entry as well as exits of competitors affect the firm’s revenues and profitability, but predicting such future strategic developments is rather complicated. In this paper, we consider forward-looking competitive entry and exit decisions using a simple equilibrium framework, solvable by integer programming and estimable from public data. To capture the taste of local demographics, we build a model based on online reviews of the incumbent establishments where facilities have latent characteristics and customers have preference for these latent characteristics. This serves as an input to predict customer demand which drives our optimal location solution and gives firms an easy and tractable toolkit for their decision-making. We apply the model to a service industry, specifically the restaurant industry, to illustrate how it can be made operational. Our estimation results show that customers differ significantly in their willingness to travel and rating sensitivities across restaurant types. Apart from a tractable toolkit to help their decision process, we show, via counterfactuals, that optimized location decision-making can increase chances of survival by up to 37.5%. Managerial insight into the nature of competitive location dispersion is also provided.

Financial Analysis of Bestore Based on SWOT Analysis

Bestore was established in 2006 and is a professional brand that integrates leisure food research and development, processing and packaging, and retail services. It has developed from a physical store in 2006 to more than 2,700 stores and was the first in the industry to position itself as a high-end snack in 2020. It has continuously innovated marketing strategies, improved the operating model, strengthened data-driven, and increased the turnover of Bestore. At the beginning of the article, the internal and external environments of Bestore are firstly analyzed from four aspects by using SWOT analysis: Strength, Weakness, Opportunity and Threat. Secondly, analyze the financial status of Bestore from four aspects: solvency, operating capacity, profitability, and development ability. Then, considering the development environment and financial status of Bestore, this article provides corresponding suggestions for the development of the enterprise, which is of great significance to advancing the high-quality development of enterprises.

Research on the transaction mechanism of electricity retail market that satisfies the full liberalization of industrial and commercial users

This paper proposes an electricity retail market transaction mechanism that satisfies the full liberalization of industrial and commercial users in the future environment of full liberalization of industrial and commercial users. The method and path of the whole process construction of the electricity retail market trading mechanism are analyzed. Aiming at the situation that a large number of industrial and commercial users all enter the electricity retail market, the electricity retail package system mechanism, diversified development and effective management and control paths have been constructed. Analyzed the countermeasures and mechanism suggestions for market transaction organizers to standardize the operation behavior of electricity sales companies and effectively prevent market risks, put forward relevant suggestions to guide electricity sales companies to diversify the development of retail services, and promote business model innovation, and analyzed the effect of case applications.

Are local retail services an amenity or a nuisance?

Abstract We test whether local retail services are considered a nuisance or an amenity and how this distinction is capitalized into residential property values. Using a rich, micro-spatial dataset on property sales transactions and business activity in New York City, we estimate the impact of access to neighborhood retail services on residential sales prices. We construct two instruments to channel supply-side drivers of retail change and to address concerns of endogeneity between changes in retail activity and property values. Results show that retail services that are more frequently consumed and experiential, and are located in relatively more mixed-use neighborhoods are positively capitalized into property values. Residents also pay more to be closer to more diverse retail clusters, and relatively less to be closer to chains. This is true across smaller 1-to-4 family homes as well as larger condos/coops and multi-family rental buildings. The price effects from certain classifications of retail, like restaurants and personal services, are mixed depending on the kind of residential property and the local concentration of the retail. Therefore, the relative strength of the amenity or nuisance effect is very much conditioned on the type of service and the localized neighborhood context.

WORK PRECARITY AND THE AGING WORKFORCE: TRENDS IN HEALTH DISPARITY AMONG OLDER SERVICE SECTOR WORKERS

Abstract Work precarity may affect workers’ physical, mental, and social well-being as navigating uncertain and insecure work conditions interacts with factors such as housing, family caretaking, and personal relationships. In particular, the service sector has long been characterized by work precarity as compared to other industries in the US, where noncollege workers are far more vulnerable to non-standard and low-wage work and Black, Indigenous, and workers of color are overrepresented. For older adults, structural and systemic inequities may exacerbate health conditions and accelerates biological aging. In this study, we measure work precarity among noncollege older workers (55-75 years old) in three large and growing service sector industries in the US: health care, retail, and food service, to access the impact of work precarity on older low-wage worker’s health outcomes, exits from the formal wage labor workforce, and linkages between work precarity and health disability.

Data-driven dynamic pricing and inventory management of an omni-channel retailer in an uncertain demand environment

In recent years, omni-channel retailing has become immensely popular among both retailers and consumers. In this approach, retailers often leverage their brick-and-mortar stores to fulfill online orders, leading to the need for simultaneous decision-making on replenishment and inventory rationing. This inventory strategy presents significant complexities in traditional dynamic pricing and inventory management problems, particularly in unpredictable market environments. Therefore, we have developed a dynamic pricing, replenishment, and rationing model for omni-channel retailers using a two-level partially observed Markov decision process to visualize the dynamic process. We propose to use a deep reinforcement learning algorithm, called Maskable LSTM-Proximal Policy Optimization (ML-PPO), which integrates the current observations and future predictions as input to the agent and uses the invalid action mask to guarantee the allowable actions. Our simulation experiments have demonstrated the ML-PPO's efficiency in maximizing retailer profit and service level, along with its generalized ability to tackle dynamic pricing and inventory management problems.

A systematic literature review and bibliometric analysis based on member subscription services in retailing

As consumers’ willingness to experience member subscription services has been increasing, merchants are launching membership programs to boost retention and draw in new consumers. Customer Relationship Management (CRM) could be aided by member subscription services, which also have the potential to expand revenue streams through a paid membership system. In this study, we use VOSviewer and four-question framework to review the research on member subscription services in retailing. A bibliometric analysis of 131 articles is conducted to characterize the research hotspots and distribution of journals. This study categorizes member subscription services into five types according to the membership benefits. Demographics, social awareness, cost consciousness and perceptual features are four aspects of target consumers. Further, we find that willingness to join member, when using membership benefits, satisfaction with retailers and loyalty are four membership journey stages that affect consumer decision. We also explore the research on optimal strategy for service providers in three scenarios: operating as a new entrant, changing operational strategy and optimizing existing business strategy. This study offers management implications for practitioners and strategy makers to develop membership systems.

Dual-uCPE for High-Availability Retailer Services with Fault Toleranceand Load Balancing

Dual-uCPE for High-Availability Retailer Services with Fault Toleranceand Load Balancing

Resale Price Maintenance in a Successive Monopoly Model*

We explain why a manufacturer may impose a minimum resale price in a successive monopoly setting. Our argument relies on the retailer having noncontractible choice variables such as the price of a substitute good and/or the retailer's service effort. Our explanation for minimum resale prices is empirically distinguishable from alternative justifications that rely, for instance, on retailer competition and service free riding among retailers. Whether a min RPM benefits or harms consumers depends on its effects: if it softens competition with the substitute product, it tends to harm consumers, and if it secures service provision, it tends to benefit consumers.

A study of steady-state strategies for collaborative quality improvement in new retail service supply chains considering emotional factors.

How to improve the quality of the new retail service supply chain (RSSC) has become a hot topic for enterprises and consumers. Considering the influence of the new RSSC enterprises' emotional attitude on the decision-making of quality improvement, the theory of rank-dependent expected utility (RDEU) is combined with an evolutionary game, constructing an evolutionary game model of collaborative quality improvement of new RSSC, and analyzing the game strategy choice of each participant in collaborative quality improvement of new RSSC. The study shows that when only one party is emotional, the rationality of retail service integrators will promote the synergistic improvement of the quality of the new RSSC more than functional service providers. Moreover, pessimism and optimism have an inverted U-shaped effect on quality decisions. When both parties have emotions, functional service providers remain optimistic, and retail service integrators remain pessimistic or rational can promote the collaborative improvement of new RSSC quality. In addition, the effects of quality preference, peer mechanism, feedback mechanism, and risk mechanism on the collaborative quality improvement of new RSSC are analyzed. Based on the research findings, relevant countermeasures are proposed to incentivize new retailers to conduct collaborative improvement in quality in terms of establishing an open mechanism for negotiation and consultation, strengthening the emotion management of new retail node firms, and adjusting the transmission of quality signals, with a view to realizing the quality collaborative improvement of the new RSSC.

Consumer preferences on quality of supermarket services in organized retailing: Structural equation modeling approach

Retailing in India has come a long way. The rapid development and advancement in technology and consumer needs have made the retail sector hold a pivotal role in our economy. Organized retailing has brought in more satisfied and convenient shopping practices among consumers. The major segments covered in organized or modern retailing include store-based and nonstore-based. The organized retail market has a lot of scope and opportunities due to value for money, changing consumer shopping patterns, rural market, enhanced middle-class consumers, growth and awareness of consumerism, technological impact, media and social media apprising and increased income ( Suresh , 2019 ). This study focuses on the supermarket segment of organized retailing, where the major daily groceries and monthly household needs of consumers are extensively delivered. Even though the major online grocery stores and applications have become a part of consumers’ lives, supermarkets and hypermarkets are enduring and growing due to the constant support offered by consumers of all categories. Despite the pandemic hindrances, the organized retailing sectors have registered strong growth and performance. This study aims to analyze consumer preferences for supermarkets and the reasons behind choosing supermarkets. The data were collected from 128 respondents who were shoppers of various supermarkets with reference to Chennai city. The data were collected through a self-administered survey using a structured questionnaire. The analysis of data was performed using descriptive statistics and SPSS AMOS. Structural equation modeling (SEM) was used in order to evaluate the association between variables used in the study.

Antecedents of Satisfaction and the Moderator Effect of the COVID-19 Pandemic on Supermarket Customers’ Perceptions

ABSTRACT A service is a commercial activity that a company offers. Companies must strive to provide a satisfactory experience to their customers, based on the feedback and preferences expressed by buyers during the purchasing process. As a result, the relationship between supermarket sellers and customers in southern Brazil was different during the COVID-19 pandemic. The scope of this research aimed to analyze the factors influencing supermarket customer satisfaction from the antecedents of built environment, location, perceived service quality, and the effects of the COVID-19 pandemic as a moderator between the investigated constructs. A survey was conducted with supermarket customers in southern Brazil in two moments: one before and one during the COVID pandemic. The data were analyzed through structural equations modeling and moderation tests. The main results show that the built environment and location positively impact perceived service quality and customer satisfaction. The perceived service quality positively impacts customer satisfaction, and this relationship is stronger during the pandemic. Our theoretical contribution points out the physical environment as a multidimensional construct that changed due to the pandemic of COVID-19 concerning the customers' perception. Our findings should also be used to evaluate the locations of retail services related to hospitality and tourism.

Gender and Sub-Sector Differences in Motivation in Starting up Small-scale Enterprises in the Tourism Industry of Sri Lanka

This study explores gender and sub-sector differences in motivation in starting up small-scale enterprises in the tourism industry of Sri Lanka. The researcher collected data from small-scale tourism entrepreneurs in the Hikkaduwa Urban Council (HUC) of Galle District, Sri Lanka. The researcher employed a mixed approach using a semi-structured questionnaire (195 women and 195 men entrepreneurs), key informant interviews (25), non-participant observations, and in-depth interviews (24). Three major sectors, namely accommodation, food and beverage, and tourism-affiliated retail services, were selected for this study. Secondary information was primarily collected from the literature on gender studies and relevant documents of small-scale enterprises. The stratified and purposive sampling methods were employed, and the data were analyzed quantitatively and qualitatively. There are significant differences found between men and women in terms of sub-sector differences in motivation in starting up small-scale enterprises in the tourism industry of Sri Lanka. The main motive for many women to participate in entrepreneurial activities was earning income. A sector difference was noted here, and women entrepreneurs’ involvement in household income is higher than that of male entrepreneurs. Without other primary income sources, the main motivating factor in the food and beverages and tourism-affiliated services sub-sectors is the income factor. However, most women entrepreneurs in the accommodation sub-sector were motivated to engage in small-scale businesses due to being in the tourism zone, though percentage-wise, their proportion is less than men

Omnichannel quality: the new imperative of purchase intention among fashion retail market

The challenge for the new normal era lies in the changing habits of fashion retail consumers after the COVID-19 pandemic. This study investigates how omnichannel service quality influences consumer purchase intention for fashion products in the post-pandemic era. The research method used was verification, with 400 retail fashion SME consumers in Indonesia as respondents during the pandemic. Path analysis was employed as the data analysis technique. The results indicate that the level of omnichannel service quality has a significant impact on purchase intention among fashion retail consumers. Additionally, this study contributes to understanding the dimensions of omnichannel retailing service quality that positively influence purchase intention.

Can Unmanned Supermarkets Become Leaders in the New Retail Era: Industry Status and Improvement Measures

In the trend of rapid growth in the Internet of Things industry and new retail industry, automated and manual retail services such as unmanned retail and unmanned supermarkets have come to people's attention. With the development of emerging technologies, face recognition, artificial intelligence, big data, and 5G industries, the popularity of smart phones and the convenience of online payment have made people accustomed to using payment tools anytime and anywhere, and mobile payment has also provided convenience for businesses, consumers, and some public services; Big data credit reporting covers a wide range, and is more convenient and younger than the traditional retail model. This to some extent allows the public to experience the application of intelligent technology in daily life, improving happiness and convenience, but there are also problems and hidden dangers in this process. In view of this, this article conducts in-depth research on the market of unmanned supermarkets and concludes that unmanned supermarkets need to improve and innovate in multiple aspects in order to become a long-term retail form in the future.

Emission Reduction and Channel Decisions in a Two-Echelon Supply Chain Considering Service Spillovers

The development of e-commerce and the green economy has prompted suppliers of green products to introduce internet channels by which products are directly sold to consumers. However, the emergence of “price wars” and “free riding” between the two channels after the introduction of online channels may affect the stability of the green supply chain. This paper uses optimization theory to investigate the impact of service spillover effects and different channel structures on the optimal decision of supply chain members in a Stackelberg game. By comparing the equilibrium outcomes of the single-channel and dual-channel supply chain in a setting with and without retail services, we observe that the supplier prefers to encroach on the market when services that retail locations provide largely spillover to and benefit the direct sales channel. Contrary to popular belief, a higher degree of service spillovers is beneficial for the retailer to achieve more returns under the dual-channel structure, whereas supplier encroachment will lead to a decline in the service level if the spillover degree is relatively low. In addition, the emission reduction level of products under supplier encroachment is always higher than that employed in the single-channel structure if consumers have both low-carbon preference and a high degree of service sensitivity. Finally, we expand our discussion by introducing the carbon cap-and-trade (CCT) mechanism to compare the conditions for achieving Pareto improvement under supplier encroachment. These results can provide helpful insights for decision-makers in supply chain management to implement effective channel selection and achieve sustainable development.

Frontline resilience in the retail realm: the role of moral disengagement in understanding employee behavior in the post-pandemic uncertainties

In the wake of the pandemic, retail services—especially vulnerable to ethical dilemmas due to heightened market instability—demand a deeper understanding of service employees’ behaviors. This research investigates the impact of market uncertainties on organizational justice and behaviors, with a specific examination of the moderating role of moral disengagement. An online survey was used to collect data from 255 retail service employees. Structural equation modeling (SEM) with the partial least squares (PLS) approach was applied. Findings suggest that market uncertainties influence employees' justice perceptions. Intriguingly, in conditions of high moral disengagement, the relationship between justice perception and citizenship behaviors was strengthened, indicating a nuanced interplay of ethical perceptions amidst uncertain environments. This study is the first attempt to explore the unique role of moral disengagement in understanding frontline employees’ behaviors, which can offer insights into how employees' ethical considerations evolve in complex, uncertain business environments.

Half a decade in two years: household freight after COVID-19

ABSTRACT E-commerce growth as experienced during the COVID-19 pandemic was only expected to occur by 2025–2030. Online shopping increased in intensity and diversity. At the same time, retailers diversified their operations and opened online channels, also in sectors that previously showed reluctance to make this shift. These evolutions resulted in an expansion of household freight in terms of volume, geography, and organisation. Hence, half a decade of innovation in the e-commerce sector was needed in the span of two years. This manuscript summarises the repercussions for household freight since the pandemic's start. Given that interactions between consumers, retailers, and logistics service providers drive the e-commerce system, this manuscript combines these different literatures into a holistic framework, going beyond traditional siloed research on last-mile logistics, retail strategies, or online shopping behaviour. We found that logistics has come to the forefront: logistics service providers now need to provide tailored services and come in direct contact with consumers. As a result, we need (i) to gain insights into the new geography and dynamics of household’s freight origins and destinations; (ii) use this to re-examine existing relationships between consumer, retailer, and logistics service provider, and; (iii) assess the impact of more demanding consumers on the sustainability of the overall system.

Positive Relationships between Service Performance and Social Media Use in Internet Retailing

The purpose of this research is to investigate whether differences in Internet retailer service performance influence the use of social media. Information economic theory is used to hypothesize a positive relationship between performance and social media use. To test the relationship, 516 Internet retailers’ websites were investigated, and their service performance was analyzed based on online customer reviews. Exploratory factor analysis transformed the customer review data into refined measurements. The logistic regression model validated the positive relationship between service performance and social media use. Internet retailers who use social media show higher service performance. However, the significant effect is limited to online service performance. Offline service performance (i.e., order fulfillment service performance) was not significantly associated with social media use. This study considers information symmetry as a critical factor in social media use, which differs from previous studies based on traditional technology acceptance frameworks.

Going the Extra Mile, Now or After a While: The Impact of Employee Proactivity in Retail Service Encounters on Customers’ Shopping Responses

AbstractEmployee proactivity has been discussed as a key predictor of firm success and organizational performance. However, previous proactivity research has rarely focused on customers, and the few available proactivity studies from retail settings are either cross‐sectional, solely based on subjective outcomes (e.g. customer satisfaction) or restricted to aggregated data of objective outcomes (e.g. profits per store). We investigate the causal effect of employee proactivity in retail service encounters on customers’ actual purchase behaviour and satisfaction ratings at the fine‐grained level of individual customers. By integrating theories on social perception with prior proactivity findings, we find that employee proactivity positively predicts customers’ shopping responses. This finding extends from correlational to experimental designs across sample types and paradigms, is replicated in actual retail settings, and is mediated by customers’ perceptions of employee warmth and competence. Furthermore, the effect generalizes across several focal outcomes, including behavioural variables (spending and purchase likelihood), and is moderated by the time to employee‐initiated contact in a way that goes against customers’ own beliefs. In sum, the present research quantifies the financial consequences of employee proactivity and indicates that in ordinary retail service encounters, high proactivity can compensate for delays, thus counteracting the aversive aspects of waiting.