In-store Experiment Research Articles

The effects and mechanism of discounting unit price

Purpose Supermarket promotions typically use a standard label, which displays the regular price, discounted price and discounted unit price. Visits to supermarkets across multiple countries found that none used a price label that also contains the regular (i.e. pre-discounted) unit price. This study aims to investigate the effectiveness of a dual unit-price label that includes the regular unit price as a reference price, and what underpins its efficacy in enhancing promotion attractiveness. Design/methodology/approach The authors executed four studies, supported by three supplemental studies. Study 1 established external validity through a natural instore experiment. Studies 2 and 3 tested the dual unit-price label with different pack sizes and assortment sizes, respectively. Finally, Study 4 tested the underpinning mechanism of the efficacy of the dual unit-price label. Findings In Study 1, daily sales records over four weeks showed that dual unit-price label promotions had larger sales volume than standard-label promotions. Study 2 showed a larger pack size, a heuristic cue for greater economy and increased preference for dual unit-price label promotions. Study 3 similarly found that the dual unit-price label was preferred more as cognitive load was increased by assortment size. Finally, Study 4 demonstrated the dual processing of the dual unit-price label, using a conscious preference measure (information provided) and an unconscious implicit attitude test. Research limitations/implications Unit-price research has mainly considered a cognitive process. The authors demonstrated the importance of considering a heuristic process. Practical implications Supermarkets can use this simple and yet effective tool to improve promotion effectiveness. Originality/value This study demonstrates that the dual unit-price label is a new and easy tool to enhance sales promotions, which academic research and managerial practice had never considered previously.

How an In-Store Self-Service Technology Impacts Customer Shopping Experience, Satisfaction and WOM Intentions

Retailers are increasingly using self-service technologies (SSTs) in-store. However, their impacts are not well known. The objective of this study is to establish whether the use of SST and its key characteristics (perceived ease of use (PEOU) and perceived usefulness (PU)) has a significant effect on the customer experience (i.e., cognitive, affective, sensory, behavioral and social dimensions). The effect of these dimensions on satisfaction and positive word-of-mouth (WOM) intent were also investigated. We conducted an in-store experiment in which half of the 102 participants chose sports shoes using an interactive wall while a salesperson exclusively assisted the other half. The results demonstrate that the cognitive/positive affective and sensory dimensions of the experience are positively influenced by use of SST while the social dimension is diminished. Further, when SST was used, the negative affect increased. For customers who used the SST, PEOU and PU contribute to enhance all dimensions of the experience, except for PEOU which lowers the social experience. Customer experience positively impact consumer’s satisfaction and WOM intent.

Sensory Perception and Willingness to Pay for a Local Ancient Pear Variety: Evidence from In-Store Experiments in Italy.

Product optimisation is one of the most crucial phases in the new product development or launch process. This work proposes applying penalty analysis to investigate the impact of not just-about-right (JAR) sensorial aspects on willingness to pay (WTP) and an overall liking for a local Italian ancient pear variety and to verify the mediating role of pleasantness in the relationship between not-JAR sensory attributes and consumers' WTP using structural equation model (SEM). One hundred and twelve non-expert participants recruited during an in-store experiment evaluated overall liking and JAR attributes and were involved in an in-field experimental auction based on the non-hypothetical Becker-DeGroot-Marshak (BDM) mechanism. The participants' average WTP for the sample was EUR 3.18 per kilogramme. Only juiciness and sourness significantly impact consumers' overall liking but not on consumers' WTP. Moreover, pleasantness did not mediate the relationship between non-balanced sensorial aspects and WTP. In conclusion, the penalty analysis for attributes not being JAR in monetary and hedonic terms is a beneficial research approach for a deep-inside evaluation of the potentiality of the product in the marketplace, providing helpful directions for product optimisation. Results show market potential for the local ancient pear variety 'Angelica'.

Consumer Stigma and the Reputation Trap Hypothesis: An In-Store Experiment with Colorado Wines

AbstractWe conducted an in-store experiment to test the hypothesis that Colorado wines may suffer from reputational stigma. The context relates to marketing challenges faced by novel wine regions entering the competitive retail environment, even in a local context, and the possibility of being stuck in a “bad reputation trap.” Adopting a 2×2 design where we varied region of production (Colorado vs. California) and grape variety (familiar vs. unfamiliar), we administered a between-subject information treatment that revealed the origin of production to only half of the participants. We measured taste perceptions using Likert scales, and we elicited valuation via a multiple price listing. Our results are consistent with the presence of stigma against wines produced in Colorado. In the discussion, we draw from the literature on stigmatized markets to suggest plausible strategies to remove or avoid stigma. (JEL Classifications: L1, L15, Q1, Q13)

Assisting sustainable food consumption: The effects of quality signals stemming from consumers and stores in online and physical grocery retailing

Increased fish consumption can contribute to a more sustainable food system. This paper explores how signaling affects consumer choices in fresh fish purchasing situations, both in traditional and online retail settings. We examined two different types of market signals; quality signals stemming from consumers as a social proof and authority signals coming from stores. Study 1 showed that quality signals from other consumers (product rating) had the highest importance score in an online setting when compared to traditional attributes in a conjoint experiment. Study 2 again confirmed the prominence of quality signals from consumers by extending the research over to brick and mortar retailing and top-selling items. Study 3 followed up with in-store experiments, using fresh cod fillets as the target product and fresh ground beef as a comparison. The experiments showed increased sales from both types of signaling, with an overall 41.5% increase for fish in our study.

The Impact of Nutrition Labels on Food Sales: An In-Store Experiment in a Turkish Supermarket

Nutrition information is a policy tool that aims to guide consumers towards healthier diets, thus preventing further increases in obesity. This study focuses on the impact of front-of-pack nutrition labels on Turkish consumers’ purchase decisions. In particular, the study investigates whether both the presence of the label itself and the content provided on the label (here: the presence [vs. absence] of health ticks) impact on consumer demand for food products. The authors propose two hypotheses that are grounded in cue utilization and consumer behaviour theories and conducted an experiment in a Turkish supermarket to test the hypotheses. They manipulated the product packages of three brands offering wafers (including a variety of flavours) to contain a nutrition label on front of the package with information on calories, fat, saturated fat, sugars and salt (in kcal and g per 100 g, respectively). The nutrition information was complemented with either a health tick (56% of the products were eligible) or a placeholder for products that failed eligibility criteria (44%). Total daily in-store sales of wafers were monitored before, during and after the manipulation. The results of the study showed that the presence of the label itself increased consumer demand for the follower brand (but not for the leader brands). The presence (vs. absence) of a health tick on the nutrition labels did not affect sales of more (vs. less) healthful foods. The findings thus indicate that consumers were partly more responsive to the nutrition label per se as opposed to the presence of a health tick on the label. The authors derive implications for implementation efforts of nutrition labels.

Consumers’ willingness to pay and drivers of motivation to consume omega-3 enriched mozzarella cheese

Purpose Consumer interest and willingness to pay (WTP) for omega-3 enriched water buffalo mozzarella cheese are evaluated through an in-store experimental auction. The purpose of this paper is to estimate individual WTP for enriched mozzarella cheese and related it to self-efficacy beliefs and outcome expectations of omega-3 consumption, following regulatory focus theory. Design/methodology/approach Data were collected in May-June 2015 from a sample of 150 consumers in Southern Italy. A structural equation modelling procedure was implemented. Findings The results show a significant role is played by prevention outcome expectations on consumer behaviour. While promotion outcome expectation constructs proved non-significant, self-identity correlates with prevention outcome expectations. Research limitations/implications There are several limitations that the authors are aware of regarding this study. First of all, since the authors rely on self-reported measures, optimistic bias might have affected participants’ responses (Weinstein, 1980). Second, results may be influenced by the choice of the specific information provided to consumers for the analysis; different claims and different information framings should be tested (LeBoeuf and Shafir, 2003). Practical implications Implications stemming from the results encourage the promotion of omega-3 enriched mozzarella cheese based on stimulating outcome expectations, bearing in mind that individual motivations should be enhanced by self-identity beliefs. Originality/value Although the combined role of self-efficacy and outcome expectations on personal intention to adopt healthy behaviour has already been demonstrated (Keller, 2006; Tudoran et al., 2012), to the best of the knowledge no previous study relates individual behaviour to an intention measured as a WTP for an actual product. In addition, current study has applied a non-hypothetical BDM (from Becker et al., 1964) auction in-store experiment.

An In-Store Experiment on the Effect of Accessibility on Sales of Wholegrain and White Bread in Supermarkets

Even though whole grain foods have various health benefits, consumers have been found not to eat enough of them. Nudging interventions are built on the premise that food purchases and consumption are strongly influenced by the environment in which decisions are made. Little research has been conducted to examine the influence of a small and inexpensive nudging intervention on bread choices in a real-life supermarket context. An in-store experiment was conducted in two six-week periods in two supermarkets to investigate the effects of accessibility on consumers’ purchase of healthier whole grain and other types of bread. In the high accessibility condition, healthier bread was placed in a more convenient location for the shopper on the left side of the shelves where it was encountered first. In the low accessibility condition, it was placed on the right side. There were consistent significant differences in sales between supermarkets, types of bread, day of the week, but not between low and high accessibility. Additional research is needed to better understand the effects of convenience and accessibility on bread choices.

The role of health-related claims and health-related symbols in consumer behaviour: Design and conceptual framework of the CLYMBOL project and initial results.

Health claims and symbols are potential aids to help consumers identify foods that are healthier options. However, little is known as to how health claims and symbols are used by consumers in real-world shopping situations, thus making the science-based formulation of new labelling policies and the evaluation of existing ones difficult. The objective of the European Union-funded project Role of health-related CLaims and sYMBOLs in consumer behaviour (CLYMBOL) is to determine how health-related information provided through claims and symbols, in their context, can affect consumer understanding, purchase and consumption. To do this, a wide range of qualitative and quantitative consumer research methods are being used, including product sampling, sorting studies (i.e. how consumers categorise claims and symbols according to concepts such as familiarity and relevance), cross-country surveys, eye-tracking (i.e. what consumers look at and for how long), laboratory and in-store experiments, structured interviews, as well as analysis of population panel data. EU Member States differ with regard to their history of use and regulation of health claims and symbols prior to the harmonisation of 2006. Findings to date indicate the need for more structured and harmonised research on the effects of health claims and symbols on consumer behaviour, particularly taking into account country-wide differences and individual characteristics such as motivation and ability to process health-related information. Based on the studies within CLYMBOL, implications and recommendations for stakeholders such as policymakers will be provided.

A Mutual Learning Platform: A Consumer-supplier Collaboration Experiment for Low-carbon Supply Chain innovation

The value chain and corresponding supply chain have been developed depending on an economy that requires high greenhouse gas (GHG) emissions. This problem needs to be solved and drastic changes are needed. Suppliers have been taking a variety of measures, albeit within the ranges of their present value chains, in response to societal demands and following or pre-empting government requests. Meanwhile, consumers also find behavioural change difficult, even though they are aware of eco-friendly purchasing. We designed a mutual learning platform as a place to rebuild the divided relationship between consumers and suppliers and conducted an in-store experiment at a supermarket. Through the experiment, we examined the effectiveness of the mutual learning platform.

An in-store experimental analysis of consumers' selection of fruits and vegetables

Although there is general agreement on the health benefits of eating fruits and vegetables (F&V), consumers still do not eat enough. Numerous interventions and government guidelines have been undertaken to promote consumption, but with somewhat misfiring results. Research has identified diverse barriers to increased F&V consumption, which include the retail environment – such as location of F&V within the store compared with the positioning of sweets, availability, nutrition information, and price. We performed a repeated-measures in-store experiment to investigate the effects of F&V placements on consumers' buying behaviour. The in-store experiment manipulated placements of bananas in three ways. The first intervention consisted of placing bananas at the checkout instead of traditional sugar products, the second involved placing the bananas on the sweet shelf in the stores, and the third involved a small marketing mix of the first two interventions in addition to a relevant advertisement in the stores. To enrich the explanatory system, a consumer survey and an in-store observational study was also conducted. The results from the survey showed that consumers had very positive attitudes towards F&V consumption and intended to buy more. In-store interventions were also deemed to be important and necessary by most consumers in the survey. However, in spite of this, the results from the in-store experiment deviated substantially from the outcome of the survey in a way that it was unsuccessful in changing consumers' buying behaviour of bananas in the stores. These results can be viewed through the lenses of the behavioural perspective model of consumer choice and the primrose path theory.

The behavioural economics of neutral and upward sloping demand curves in retailing

Prior research on pricing in behavioural economics in closed settings has traditionally delivered positive decelerating demand curves. In consumer behaviour analysis, the effects of price on consumer choice has been analysed with both panel data and in-store experiments. These studies have not only found downward sloping demand curves, but also neutral and upward sloping curves. The purpose of the current research was to try to detect these kinds of neutral or upward sloping demand curves in retailing and analyse the effects of in-store price manipulations on sales to try to scrutinise these anomalies further. The effects of the price interventions were inferred by scanner data from convenience stores, supermarkets and discount stores. The stores belonged to Icelandic and Norwegian retailers. Despite rather intensive price variations, the results confirm either a steady state or even a subtle upward sloping demand curve for all product categories tested. In line with the behavioural perspective model of consumer choice, the findings support a distinction between closed and open settings regarding the effects of price on consumption. The current research shows that the neutral or upward sloping demand curves cannot be attributed to the level of analysis, product or brand selection, type of store, methodological differences or to the data analysis. This behavioural phenomenon in open settings is necessary to study further. This is particularly important for retail executives as it is crucial to know which brand and category sales are inelastic or even upward sloping.

An in-store valuation of local and organic apples: the role of social desirability

The authors analyze data from an in-store experiment in Colorado to estimate willingness to pay for “local” and “organic” labels in fresh apples, and investigate consumers' motivations. They found that the value of the “local” trumps that of “organic,” and motivations for valuing “local” correlate with social and public good consumer values. One methodological finding is that a simple scaling of the choice experiment offering, from 1 to 2 pounds of apples, induces a rather large change in the estimated premia. The authors explain this effect within the context of the bias induced by social desirability. [Econ Lit classification: Q120, Q130, Q180]. © 2011 Wiley Periodicals, Inc.

In-Store Experimental Approach to Pricing and Consumer Behavior

This study assessed how, and to what extent, it is possible to use behavioral experimentation and relative sales analysis to study the effects of price on consumers' brand choices in the store environment. An in-store experiment was performed in four stores to investigate the effects of different prices of a target brand on consumers' relative buying behavior using an alternating treatment design with baseline. The intervention consisted of periodically reducing the target brand's price by 17–26%. Price reductions generally had none or minor effects. However, data for one store showed lower relative sales for the price reduction condition. These are surprising results and they underline the need to examine all of the marketing mix factors, not only price.

The Effects of a Point-of-Purchase Display on Relative Sales: An In-Store Experimental Evaluation

An in-store experiment was performed to investigate the effects of a point-of-purchase display on unit sales of dishwashing liquid. The experimental conditions consisted of periodically placing two copies of the same display in convenience stores and supermarkets. The results were unanticipated; point-of-purchase displays did not change relative sales of the target brand. An antecedent intervention such as a point-of-purchase informational display is not sufficient to change consumer choice in the presence of utilitarian reinforcement in the form of a lower-priced competing product.

Consumer preferences and willingness to pay for grass-fed beef: Empirical evidence from in-store experiments

This study uses experimental economic techniques to explore consumers’ preferences between conventional beef and grass-fed beef, and their willingness to pay for grass-fed beef. Our analysis shows that palatability attributes play a central role in determining consumers’ preferences and WTP. We also find that consumers’ nutrition knowledge, beef consumption behavior, health condition, living alone status and household size have significant impacts on consumers’ WTP for grass-fed beef.

BRAND PLACEMENT AND CONSUMER CHOICE: AN IN‐STORE EXPERIMENT

An in-store experiment was performed to investigate the effects of shelf placement (high, middle, low) on consumers' purchases of potato chips. Placement of potato chips on the middle shelf was associated with the highest percentage of purchases. The results confirm the importance of item placement as a factor in consumers' buying behavior.

Drying at Sub-zero Temperatures: Case Study on In-store Drying of Grains

Drying using ambient subzero temperatures is of potential interest for thermosensitive products. Existing theoretical drying models have been used to predict the response of the system to different aeration systems. The model is based on enthalpy balances and includes water freezing and deposition of water on the surface of the commodity. It uses thermophysical properties of the commodity (i.e., maize in this study) and ambient weather data collected from northeastern China. Water within the grain is modelled as bound, free or frozen. The physical state of water under subzero temperatures has been investigated using a differential scanning calorimeter and nuclear magnetic resonance spectrometry. It has been established that the quantity of bound water was around 17%. Thermophysical properties characterizing the drying behavior of maize kernels cv. Huangmo 417, the most common variety grown in northeastern China, were determined under a wide range of moisture contents and drying temperatures. Those were: particle and bulk density, porosity, thermal conductivity, specific heat, thin layer drying, and sorption isotherms. It could be established that the thermal conductivity and specific heat were strongly dependent on temperature and relative humidity and that the sorption isotherms followed the 5-term Guggenheim-Anderson-de-Boer model. The industrial-scale in-store drying experiments in northeastern China have demonstrated the feasibility of in-store drying under subzero conditions. Advantages in terms of reduced susceptibility of maize to mould formation have been established, resulting in improved quality and financial returns to the processor.

Pleasant Surprises: Consumer Response to Unexpected In-Store Coupons

This article studies the impact of in-store “surprise” coupons (e.g., electronic shelf coupons, peel-off coupons) on consumers' total basket of purchases. A conceptual model is developed that (1) predicts that the use of a surprise coupon will increase the size of the shopping basket and the number of unplanned purchases made on the shopping trip and (2) predicts the type of these unplanned purchases. The authors present the results of an in-store experiment and analysis of the Stanford Market Basket Data to test these predictions.

Structural Information Factors which Stimulate the use of Nutrition Information: A Field Experiment

Four structural information factors were tested in an in-store experiment. Nutrition information was presented on point-of-purchase signs and changes in brand sales were monitored. The sales data reveal that changes in purchase behavior are a function of two structural properties of the information, its presentation format and the extent of variation in brand ratings on a sign.