Small businesses need to heed customers' needs and innovate for market success

The purpose of this research is to determine how local businesses located in the small, unincorporated, rural community of Castroville in the central coast of California, USA, can innovate to achieve greater market success by reducing community monetary leakage. The source of this community monetary leakage is thought to be outshopping. This study found that outshopping by Castroville residents in communities adjacent to Castroville is responsible for a significant percentage of Castroville's residents' weekly expenditures. Recommendations based on the results of this research include making desired products available in Castroville and pricing them at a level that is clearly within the purchasing power of the Castroville residents. For Castroville residents who work out of the community, desired products must be made available in Castroville for purchase at times of the day and during the days of the week in which these residents can shop in Castroville. Our research also shows that developing innovative newspaper advertisements and utilising marketing mechanisms that focus on special sales and point-of-purchase promotions related to these desired products can help increase Castroville market demand and success.