Certain Aspects of Retail Trade as an Object of Marketing Research

 

DOI: 10.46340/eujem.2024.10.3.2

Manana Nanitashvili, Doctor of economics
Gori State Educational University, Georgia

How to cite: Nanitashvili, M. (2024). Certain Aspects of Retail Trade as an Object of Marketing Research. European Journal of Economics and Management, 10, 3, 10-17. https://doi.org/10.46340/eujem.2024.10.3.2

 

Abstract

Retail trade is a complex socioeconomic system. In the economic literature dedicated to trade issues, the primary focus is on the consumer market. Additionally, the significance of the retail intermediary market, which directly influences the consumer market, often remains without due attention. This market is characterized by a high level of risk and uncertainty. Under such conditions, the primary task of retail enterprises is their survival (functioning), i.e., competitiveness. There is no unambiguous view on this issue in marketing theory. Several directions can be distinguished for studying competitiveness. In our opinion, a relevant indicator of competitiveness in retail trade can be determined based on modeling using biological analogies. The activities of retail enterprises under market economy conditions resemble the behavior of biological organisms. According to the analogy with biological systems, the entirety of retail enterprises in a specific market can be considered as a biocenosis, representing a unity of interacting populations. Similar to biological systems, the competitiveness of retail enterprises is determined by their “assimilation ability,” that is, the ratio of income to expenses. A deterministic approach to the analysis of competitiveness in retail trade allows for distinguishing its qualitative (competitiveness index) and quantitative (market share) aspects. Competition in retail trade is a complex process, which in turn determines diverse methodological approaches to the classification of competition elements and the definition of their content. For the analysis of the level of competitive struggle in retail trade, a methodology is necessary that ensures the synthesis of the influence of criteria with qualitatively different significance and that can take into account the new properties arising from the synergistic effect of the interaction of these criteria. In our opinion, the method of hierarchical analysis represents the most appropriate systematic approach for studying competitive relations in retail trade.

Keywords: retail trade, competition, competitiveness, market economy, competitiveness index.

JEL: L 81, F 12.

 

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