Why Do Czech Customers Come to Upper Palatinate? Motives, Sales Volume, and the Importance of Distance: A Case Study of Shopping in Bavaria

Abstract

This case study investigates the cross-border shopping behavior and potential of Czech customers in Upper Palatinate (Bavaria). Based on a point of sale survey (POS) and two household surveys with more than 500 participants, the expenditures of Czech customers in the retail market in Upper Palatinate are estimated using linear potential methods. Using a logit model, the study also attempts to identify the main drivers of cross-border shopping, aiming at increasing its intensity and thus furthering the development of the cross-border region. The distance from the place of residence to the border is the strongest influencing variable, but demographic characteristics also impact the decision to go shopping in Bavaria. Finally, specific activities within the categories of “welcome culture” and “marketing and communication” aimed at promoting the cross-border shopping of Czech customers in Upper Palatinate are proposed. Local retailers should especially benefit from the frequency function of grocery stores as well as develop combination offers, e.g., with tourist facilities, following sustainable development trends.