PurposeIdentifying the patterns of retail institutional change has piqued the interest of retail academics for nearly a century. The Big Middle hypothesis is one of the most recent and hybridized versions of similar theories. According to it, retailers seeking a dominant position in retailing can migrate into the Big Middle, the largest market segment, by specializing in a large market with a broad product assortment or by focusing on a specific product category and simultaneously catering for multiple segments at the same time. This study provides empirical evidence for the latter proposition by employing fuzzy-set qualitative comparative analysis (fsQCA) on the case of UNIQLO, a Japanese clothing specialist retailing giant.Design/methodology/approachThe authors devised a survey to assess (1) consumers' perceptions of UNIQLO's store attributes and (2) their perceived distance between the UNIQLO and potential competitors. The authors used fsQCA procedures to identify multiple confluences of causal conditions that led to a high level of consumer patronage for UNIQLO from various market segments.FindingsThe findings show that UNIQLO's dominance in the Big Middle stems not only from capturing a sizable homogeneous market but from aggregating multiple heterogeneous market segments with disparities of various types. This finding explains how a specialty store retailer achieves its Big Middle position.Research limitations/implicationsThe findings gleaned from fsQCA are not statistically generalisable. It, therefore, is essential to ensure whether similar phenomena are observed under different spatiotemporal settings. Concerning the scope of the research, this study's finding is pertinent to only one part of the Big Middle hypothesis. Future studies are required to cover other dimensions of the Big Middle, including the generalist retailer's cases of the Big Middle.Practical implicationsThe results of this study may present a valuable tool to deepen retailers' understandings on; (1) the multiple causal recipes of customer patronages to their retail offerings, (2) who the pure fans of their stores are, (3) who their principal rivals are in the mind space of the consumers, and (4) their overall market position upon aiming to realise the Big Middle. It will give retail managers an insight into how to design, implement, and churn an efficient and effective RBM.Originality/valueThe study's originality is in empirically scrutinizing and elaborating a part of the mechanism of retail change heralded by the Big Middle hypothesis.
PurposeDespite retail digitisation and research efforts focussed on online and omnichannel shopping, there is insufficient knowledge regarding retail patronage formation in the grocery category, where in-store sales dominate. This study analyses the retail patronage formation in grocery in-store fill-in shopping.Design/methodology/approachThe authors designed a questionnaire to measure retail patronage behaviour, consumer satisfaction (CS), store attributes evaluation and e-retail usage. Then, the authors analysed the path structure for retail patronage behaviour formation using structural equation modelling. Additionally, they performed a mediation analysis using the bootstrap method and a moderation analysis based on a chi-square difference test.FindingsThis study provides three main findings. First, the authors' model has two ways to increase Share-of-Wallet (SOW). One is to increase Share-of-Visits (SOV) and another is to increase CS amongst non-users of e-retailing. Second, the results of the moderation analysis suggest the influence of customers' use or non-use of e-retailing on SOW formation. Third, service evaluation plays an interesting role in the overall model: the lower the assessment of service, the higher the SOV; the higher the evaluation of service, the greater the CS; the greater the CS, the higher the SOV.Originality/valueThe authors proposed the framework for the relative retail patronage formation in grocery fill-in shopping to examine the relationship between two relative patronage indicators (SOW and SOV) in the path structure and the mediating effect of CS and the moderating effect of e-retailing usage on retail patronage formation.
The importance of business model research has increased with diversification of competition, but the accumulation of empirical research has been relatively slow. This paper discusses the reasons for this trend and then introduces two analytical approaches suitable for academic discussion of business models: Within-case causal inference based on the Process Tracing Method and Qualitative Comparative Analysis. In addition, we discuss how both approaches can break through conventional empirical research on business models.
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