| Summary: | 碩士 === 國立高雄第一科技大學 === 行銷與流通管理所 === 90 ===
This research studies the strategy of retailers in a price destruction situation. The recent economic recession has given rise to much severe competition, compelling retailers to drop sales price in order to attract consumers to return and consequently, to stimulate the weak buying power. This kind of price drops is not the price discounts commonly used by corporations. It is in fact a price destruction strategy with profound affects on the market.
This research constructs four hypotheses based on two factors─organizational resources and consumer brand identity. The four hypotheses are as follows:
1.When the organization’s resources are plentiful and consumer brand identity is high, the company will use the “Value Defense Strategy” to react to the price destruction within the market.
2.When the organization’s resources are plentiful and consumer brand identity is low, the company will use the “Market Clearance Strategy” to react to the price destruction in the market.
3.When the organization’s resources are low, and consumer brand identity is high, the company will use the “Market Transfer Strategy” to react to the price destruction in the market.
4.When the organization’s resources are low, and consumer brand identity is low, the company will use the “Tag-along-price Strategy” to react to the price destruction in the market.
The targets of this research are the members of the TCFA (Taiwan Chain Stores and Franchise Association). SPSS is used to analyze the data. The analysis fully supports hypothesis 1 — “Value Defense Strategy” and partially supports hypothesis 2 —“Market Clearance Strategy”. However, neither “Market Transfer Strategy” nor “Tag-along-price Strategy” seems to have direct relationship with the performance of the organization.
Finally, if the “Value Defense Strategy” is chosen to respond to the price destruction in the market, the research suggests that the company should rapidly introduce new products/services to replace outdated and non-competitive ones. Furthermore, it should implement plans for increasing the value and added-value of products/services.
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