Supermarket industry.

The overall emphasis on non-price characteristics and the relative importance of the different characteristics in all countries provides opportunities for retail managers to differentiate their firms away from pure price competition. These consumer responses have been important in shaping the marketing strategies of the food retail companies and have allowed a range of strategies which range from an emphasis on discount prices, to pure quality and service considerations. These strategic directions are strongly supported by …

…variety of circumstances which could provide an appropriate environment. The following reasons are adopted from a recent review (Eurofood, September 1993): (i)Where leading brands charge 'excessive' price premiums. (ii)Where there is difficulty in adding value to commodity items. (iii)Where high margin products are not synonymous with the image of the retailer. (iv)Where products and prices are easy to compare for performance. (v)Where there are high advertising costs for the market leader.