Responding To Increased Environmental Hostility: A Study Of The Competitive Behavior Of Small Retailers

Abstract

This article presents the results of a study designed to examine how small retailers responded to the increased environmental hostility created by the recent arrival of Wal-Mart. Data on environmental hostility, competitive tactics, and performance were collected from 238 small independent retailers. Findings suggest that effective pricing tactics were the most effective competitive behavior for small merchants in hostile environments. In benign environments, on the other hand, satisfying selective markets appeared to be the most effective competitive behavior.