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Determinants of retail profit performance: A consideration of retail marketing strategies

J. Joseph Cronin

Journal of the Academy of Marketing Science · 1985 · Volume 13 · Issue 4

DOI: 10.1007/BF02737198

Abstract

The influence of retail marketing strategies on profit performance was investigated for a sample of thirty-five retail firms for the nine year period from 1970–1978 (n=315). Sales growth, market share, the capital-to-labor-ratio, and average inventory were found to be significantly associated with profit performance as hypothesized. Findings suggest that the keys to evaluating and selecting retail marketing strategies are: the impact on sales growth, market share, capital-to-labor ratios, and the average inventory level. Managerial implications are presented.

Keywords

Market Share, Marketing Strategy, Inventory Level, Retail Store, Sales Growth

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