Do Rivals Impact U.S. Fast Food Firm Entry in China?
Public Deposited- Last Modified
- February 26, 2019
- Creator
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Lippig-Singewald, Glenn
- Affiliation: College of Arts and Sciences, Department of Economics
- Abstract
- This research examines whether rival firms’ market presence influences initial market entry decisions for U.S. fast food firms McDonald’s, KFC and Pizza Hut in Eastern China between 2004 and 2011. It also examines factors influencing the recent increase in local Chinese fast food firms’ initial market entry. The analysis utilizes a firm-and-consumer-learning theoretical model from Toivanen and Waterson (2005) and a single-spell discrete time hazard empirical model, which are applied to data from the Carolina Population Center’s China Health and Nutrition Survey. This research reveals that the presence of KFC in a given market did not influence McDonald’s initial market entry decisions during 2004 and 2011 (and vice versa). A positive relationship was demonstrated between KFC initial market entry and higher-population, higher-income markets, and the same was demonstrated for McDonald’s initial market entry and urban markets. Also, local Chinese fast food firms entered markets where KFC already existed.
- Date of publication
- spring 2015
- Keyword
- DOI
- Resource type
- Rights statement
- In Copyright
- Note
- Funding: Carolina Global Food Scholarship
- Advisor
- Guilkey, David
- Degree
- Bachelor of Arts
- Honors level
- Honors
- Degree granting institution
- University of North Carolina at Chapel Hill
- Extent
- 31
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