Wednesday, April 22, 2009

wal-mart and starbucks

I love Wal-mart, and hate coffee. I guess I should move back to Oklahoma. Certainly not stick around California. The nearest 24-hour Supercenter to me is 31 miles away.

But seriously, the study that this is based on is fairly interesting. Market share in the area around where a business originally opened is persistently higher for many years. Of course, Starbucks and Wal-mart aren't the best examples, I would imagine: poor people disproportionately like Wal-mart, and live disproportionately in the middle of the country. Rich people love expensive coffee, and live on the coasts. But the phenomenon holds for things like Heinz ketchup and Miller beer as well.

Not exactly surprising, however. Of course higher familiarity leads to higher market share, and businesses try to start up where they are most desired.