University of Southern California
SUMMER
TROJAN
Voi. XVH
LOS ANGELES, CALIFORNIA,-TUESDAY, JUNE 23, 1965
72	NO. 3
RESENTMENT KEY FACTOR IN RIOT
in four days late last Auqust, millions upon millions of dollars in retail stores and produce went up in smoke durinq what some rationalize as a revolt, but will qo down in History as the Watts Riot. The ferosity of the hate of Negroes toward the white retailer has provoked analysis by the academic community as to whether there is any leqitimacy to the complaints of Watts residents and what, if necessary, can be done to correct the situation before it's too late.
Sturdivant said, included pricing, credit, merchandise quality and customer treatment.
From the USC study. Dr. Sturdivant concluded that consumers in disadvantaged areas pay higher prices for merchandise than the residents of prosperous areas.
“The supermarket with the lowest prices in the Watts area charged its customers an average of nearly 3 percent more than one of its sister units in Beverly Hills.” he said. “Prices in other supermarkets and Mom and Pop (owner-operated) stores were as much as 7 to 10 percent higher than comparable stores outside the area.
“Managers of larger supermarkets attribute these differences to higher costs? associated with doing business in Watts. They point to a higher incidence of burglaries. robberies, shoplifting, and vandalism. and higher attendant insurance costs. Neverthless, a few merchants were willing to admit that their prices were not as responsive as they might be. if public transportation facilities were- better and their customers consequently more mobile.”
On the subject of credit. Dr. Sturdivant's class project found the businessman had a major advantage in his customer’s concept of interest. “A dollar down and a dollar a week for the rest of your life sounds pretty good to a family living on a very restricted income.” Dr. Studi-vant declared.
Merchants Not All Wrong
But the merchant's position in these dealings is not without defense, the USC study discovered. “The merchant can point to the necessity of offering credit in low-income areas and the high costs of so doing. He exposes himself to greater risks of nonpayment and bad debts. Further, merchants in the area are generally unable to discount their accounts receivable because most financing agancies will not buy the ‘paper' from such an area."
Complaints about merchandise quality, although not unfounded in many cases, were untrue in others, the USC study revealed. While prices and credit charges might have been higher, many merchants stocked nationally-known brands. Charges of “cheapie” merchandies could, however, be lodged against short-term businesses which moved into the area, rented buildings for a few weeks or months and stocked their stores with fire sale merchandise, used goods and seconds. Dr. Sturdivant reported.
Consumer-merchant relationships were also investigated by the USC class. The conclusion: The consumers didn't care much more for the merchants than the merchants did for the customers.
(Continued on Page 4, Col. I )
For 20 years federal investment guarantees have protected American capital outlays in underprivileged nations where exportation and destruction risks were high.
But how about Watts. California ?
In an address before the Faculty Center Association last Wednesday a member of USC's faculty suggested that retailers in Watts deserve the same kind of guarantees, which in turn could result in better retailing policies and practices.
Speaking on “Retailing in Watts: It’s NOW Baby." Dr. Frederick D. Sturdivant, assistant professor of Marketing in t h e School of Business Administration, reported the findings of a study conducted by his Retailing Management class last fall following the Watts riots.
Based on interviews conducted by Dr. Sturdivant and 37 students, the USC facultyman confirmed the MeCone Report's contentions that consumer problems in the area were not due to “systematic discrimination.”
However. Dr. Sturdivant said, “although there is no evidence of a conspiracy to bleed residents of this impoverished area, they were and are victims of discrimination in the market place and this is often viewed as a conspiracy by consumers.” Retailing Practices Bis; (iripe
Retailing practices most often the subject of consumer criticism in Watts. Dr.