Consumer Choice and Multi-Store Shopping: an Empirical Investigation

Prasad, A; Ratchford, B; Singh, S

Consumer Choice and Multi-Store Shopping: an Empirical Investigation

Prasad, A Ratchford, B Singh, S

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Publisher:: Springer Verlag
Publication Type:: Journal Article
Citation:: Customer Needs and Solutions, 2020
Issue Date:: 2020-04-22

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Field	Value	Language
dc.contributor.author	Prasad, A
dc.contributor.author	Ratchford, B
dc.contributor.author	Singh, S https://orcid.org/0000-0002-6996-0371
dc.date.accessioned	2020-10-01T22:34:25Z
dc.date.available	2020-10-01T22:34:25Z
dc.date.issued	2020-04-22
dc.identifier.citation	Customer Needs and Solutions, 2020
dc.identifier.issn	2196-291X
dc.identifier.uri	http://hdl.handle.net/10453/142980
dc.description.abstract	The effectiveness of category pricing and promotions on store choice has been studied in prior literature. Although in theory all category promotions should attract consumers from competing stores, empirical support for this claim has been mixed. We propose that it is a subset of categories, called power categories, that drive cross-store traffic and that these are idiosyncratic to a retailer in its competitive set. Using scanner panel data, we investigate the consumer response to category pricing at competing stores via a random effects, multivariate probit model of store visits. We find that power categories tend to be high penetration categories. However, different stores have different power categories. Overall, our study recommends how retailers can find their power categories and identify segments of consumers who differ in their sensitivities to category prices.
dc.language	en
dc.publisher	Springer Verlag
dc.relation.ispartof	Customer Needs and Solutions
dc.relation.isbasedon	10.1007/s40547-020-00106-5
dc.rights	info:eu-repo/semantics/closedAccess
dc.subject	1505 Marketing
dc.title	Consumer Choice and Multi-Store Shopping: an Empirical Investigation
dc.type	Journal Article
utslib.for	1505 Marketing
pubs.organisational-group	/University of Technology Sydney/Faculty of Business
pubs.organisational-group	/University of Technology Sydney/Faculty of Business/Marketing Discipline
pubs.organisational-group	/University of Technology Sydney
utslib.copyright.status	closed_access	*
pubs.consider-herdc	true
dc.date.updated	2020-10-01T22:34:10Z
pubs.publication-status	Published

Abstract:

The effectiveness of category pricing and promotions on store choice has been studied in prior literature. Although in theory all category promotions should attract consumers from competing stores, empirical support for this claim has been mixed. We propose that it is a subset of categories, called power categories, that drive cross-store traffic and that these are idiosyncratic to a retailer in its competitive set. Using scanner panel data, we investigate the consumer response to category pricing at competing stores via a random effects, multivariate probit model of store visits. We find that power categories tend to be high penetration categories. However, different stores have different power categories. Overall, our study recommends how retailers can find their power categories and identify segments of consumers who differ in their sensitivities to category prices.

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http://hdl.handle.net/10453/142980