Saturday, November 28, 2009

Reciprocal exchange in rural communities: Consumers' inducements to inshop.

Reciprocity is the theory that people will only put into a relationship what they feel they will get in return. This article examines the moral, social and economic relationship between the local retailers and big box stores.
In many communities the local merchants have been losing business to the big box stores. Better roads, regional shopping centers lure consumers to travel outside their local markets, thus they spend their money outside the community. This outshopping results in lower sales for local businesses, and lost sales tax revenue for the community.
The idea is that local retailers can keep people coming in if they able to create a moral and social reciprocity with customers that will outweigh the economic reciprocity customers have with the big box stores.
The findings from the study suggest that local merchants should use a strategy centered on moral sentiments that makes shopping locally correct moral behavior within the community. To reinforce the idea that shopping locally is the morally correct activity merchant should offer more personalized service, such as greeting customers by name, supporting local sports and church activities. Although further study is warranted there is the idea from this study that by creating more interpersonal relationships local merchants may have the competitive edge over the big box discount stores.

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