Dimensions of competition in urban cannabis markets

We report the results of a survey of legal cannabis retail operators in the two largest urban centres of a Canadian province that uses a fully private model to determine the dimensions of competition between retail outlets. We find that, in addition to expected price and location competition, custom...

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Bibliographic Details
Published inCanadian public administration Vol. 66; no. 3; pp. 426 - 438
Main Authors Childs, Jason, Donaldson, Calum
Format Journal Article
LanguageEnglish
Published Institute of Public Administration of Canada 01.09.2023
Wiley Subscription Services, Inc
Subjects
Advertising
Brand loyalty
Competition
Competition (Economics)
Competitors
Consumer behavior
Customer loyalty
Loyalty
Marijuana
Marketing
Markets
Operators
Retail industry
Retail stores
Canada
Colorado
Saskatchewan
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Summary:We report the results of a survey of legal cannabis retail operators in the two largest urban centres of a Canadian province that uses a fully private model to determine the dimensions of competition between retail outlets. We find that, in addition to expected price and location competition, customer loyalty is central in the opinion of retailers. Firms also did not see the illicit market as their primary competition, instead identifying nearby legal retailers as their main competitors. Restrictions on advertising loomed large in the minds of retailers as a policy-based impediment to their success. These results are further supported by visual inspection of the exterior of all stores in one of the urban centres.
ISSN:0008-4840
1754-7121
DOI:10.1111/capa.12537