Although Price Costco is the number two warehouse club chain on a nationwide basis, the company is number three in the Boston Metropolitan Area. Attempts by Price Costco to improve the company's market penetration in the Boston Metropolitan area must address both the issues that have placed the chain number three in the Massachusetts market, and the slowing growth and weakening sales that characterize the warehouse club industry.
Two specific research questions are addressed in this research. These research questions are as follows:
1. What factors are contributing to the inability of Price Costco to achieve greater penetration in the warehouse club market in the Boston Metropolitan Area?
2. What actions by Price Costco will enable the firm to achieve a greater market penetration in the warehouse club market in the Boston Metropolitan Area? It was hypothesized that the factors contributing to Price Costco's market penetration problems were consumer concerns over price levels, membership fee levels, and product quality. The market research performed as a part of this study supported this hypothesis.
It was hypothesized that actions that would enable Price Costco to gain a greater market penetration in the Boston Metropolitan Area would be found to be aggressive pricing strategies, reduced membership fees, and an increased emphasis on fresh food products. The market research performed as a part of this study supported this hypothesis.
PRICE COSTCO: INCREASING MARKET PENETRATION IN THE BOSTON METROPOLITAN AREA
Many warehouse club discount stores are located in the Boston Metropolitan Area. Most of these warehouse club stores are components of one of the three major warehouse club chains with a physical presence in Massachusetts BJ's Wholesale Club, Sam's Club, and Price Costco.
Although Price Costco is the number two warehouse club chain on a nationwide basis, the company is number three in the Boston Me...