COVID effect on retailing: a study on consumers' retailer preferences during economic recession periods: evidence from Turkey as a predominantly Muslim society

Abstract

Purpose The purpose of this paper is to explore consumers' retailer preferences during economic growth and recession periods in a Muslim-intensive country, and to compare the efficiency of retailers of different formats. Design/methodology/approach The data of the retailers operating in different formats in the first two quarters of 2018-2020 are used in the study. The data are analyzed by using Data Envelopment Analysis (DEA). The inputs of the DEA model are personnel expenses, rent costs and advertising expenses; and the outputs are sales and profits, which are the main objective of businesses. Because of the structure of the data, the non-oriented approach is used. The efficiency of retailers is determined in the study with super efficiency, which allows retailers to rank their productivity. Findings Findings of study present that consumers exhibited price-oriented behaviors during economic recession periods. DEA findings shows that discount stores are the most efficient retailers. However, study findings also reveal that retailers who support cost-reduction strategies with promotion activities are more efficient than others during economic recession periods. Practical implications Recommendations are made for the decision makers of the retailers in line with the findings of the study. Originality/value The study contributes to the literature by evaluating the consumer preferences and the efficiency of retailers in COVID-19 outbreak period, which is one of the most special periods in world history.