Store patronage and retail competition in emerging markets

Large and local retailers' competition for customer patronage in emerging markets has received limited attention. One main discussion when analysing emerging markets is the role of large retailers and local companies. In many situations small retailers are the only option for consumers, as large retailers have not reached low-income communities. In the Brazilian context, data from two locations with different profiles has been analysed using the Bayesian estimation probit to determine store patronage. Results show that local retailers have a competitive advantage based on functional and emotional attributes.