Store Price Research Articles

Pricing, Quality, and Stocking Decisions in a Manufacturer-Centric Dual Channel

Problem description. We consider a dual channel in which a focal manufacturer (he) sells his output through his online store and an independent brick-and-mortar retailer (she). In this manufacturer-centric dual channel, we study product line, stocking, and pricing decisions in the presence of stochastic demand and inventory constraints. The pricing decisions include choosing whether to give price match guarantees (PMGs), standard in the U.S. retail practice. Methodology/Results. We analyze a game-theoretic model in which a focal manufacturer designs a product line, sets wholesale prices, and decides what products to sell in the dual channel. An independent brick-and-mortar retailer responds to the product line design and the wholesale prices by making stocking decisions in her store. Then, both stores observe demand and independently set retail prices subject to any PMGs that the stores gave to consumers. The brick-and-mortar store (online store) fulfills demand in a make-to-stock (make-to-order) fashion. We find that whenever one of the stores holds a competitive advantage, the manufacturer sells the same product line in both stores. If the brick-and-mortar store holds an advantage, it matches the online store’s retail price to obtain favorable wholesale pricing from the manufacturer. We find no equilibria where the online store price matches the brick-and-mortar store or the stores’ prices match each other. Finally, when neither store has a clear advantage, the manufacturer mitigates price competition by designing a different product for each store. Managerial implications. Our model helps identify optimal stocking and pricing strategies that depend on e-fulfillment cost and demand uncertainty and offers a novel reason for offering PMGs in a supply chain.

Changes in food pricing and availability on the Navajo Nation following a 2% tax on unhealthy foods: The Healthy Diné Nation Act of 2014.

In 2014, the Navajo Nation Healthy Diné Nation Act (HDNA) was passed, combining a 2% tax on foods of 'minimal-to-no-nutritional value' and waiver of 5% sales tax on healthy foods, the first-ever such tax in the U.S. and globally among a sovereign tribal nation. The aim of this study was to measure changes in pricing and food availability in stores on the Navajo Nation following the implementation of the HDNA. Store observations were conducted in 2013 and 2019 using the Nutrition Environment Measurement Survey-Stores (NEMS-S) adapted for the Navajo Nation. Observations included store location, type, whether healthy foods or HDNA were promoted, and availability and pricing of fresh fruits and vegetables, canned items, beverages, water, snacks and traditional foods. Differences between 2013 and 2019 and by store type and location were tested. The matched sample included 71 stores (51 in the Navajo Nation and 20 in border towns). In 2019, fresh produce was available in the majority of Navajo stores, with 71% selling at least 3 types of fruit and 65% selling at least 3 types of vegetables. Compared with border town convenience stores, Navajo convenience stores had greater availability of fresh vegetables and comparable availability of fresh fruit in 2019. The average cost per item of fresh fruit decreased by 13% in Navajo stores (from $0.88 to $0.76) and increased in border stores (from $0.63 to $0.73), resulting in comparable prices in Navajo and border stores in 2019. While more Navajo stores offered mutton, blue corn and wild plants in 2019 compared to 2013, these changes were not statistically significant. The findings suggest modest improvements in the Navajo store environment and high availability of fruits and vegetables. Navajo stores play an important role in the local food system and provide access to local, healthy foods for individuals living in this rural, tribal community.

Optimization Of An Online Store Price Recommendation System Using Hybrid

Recommender Systems (RSs) are software tools and techniques that provide suggestions for items that are most likely of interest to a particular user. We take a look at the online-store price recommendation system, the processes and methodology and the steps taken to design the system. We will also evaluate the research methodology and elaborate on the basic functionalities of the recommendation system. Store price Recommender Systems (RSs) are software tools and techniques that provide suggestions for products that are most likely of interest to a particular user. This paper aim to design and develop an online store price recommendation system using Hybrid techniques, its goal is to suggest viable products to users and also provide real time cost/price of products. The system is based on user’s evaluation of items or previous purchases records. However, this has been known to expose two major issues: sparsity problem and scalability problem The proposed system is designed using the Object-Oriented Analysis and Design Methodology (OOADM) owing to the fact that it is a data driven methodology and concentrates on several views and perspectives of data. The system to be developed is an online web application that allows interaction from both user and administrator.

Effectiveness of Visual Merchandising on Consumer Buying Behaviour: A Study of Reliance Digital, Puttur, DK

Purpose: In this networked world, the buyer's purchase decisions are influenced by the arrangement and presentation of items in the store. Nowadays, the furniture and furnishing types have become more viable in the retail industry. Many new businesses are entering into the organized format of retail in this category. Hence the retailers need to differentiate themselves from each other. As the products are similar, it is necessary to differentiate themselves by presenting them with visual merchandising. Objective: The core objective of this work is to study the influence of visual merchandising on consumer purchase patterns based on store attributes. Another objective of this study is to know the dimensions which influence the purchase behavior or decision of the consumers, Design/Methodology/Approach: For this analysis, we have considered many online sources, namely websites and blogs, which guide and review display merchandising. Percentages, charts, diagrams are being used to present the tabular data. Findings/Result: It is found that variables like store appearance, lighting, music, window display, mannequins, and price tags have an impact on the purchase choice of consumers, as per the changing need of consumer the retailer should always try to maximize the quantity of new merchandising relating to the trend. The store must adopt a congenial store atmosphere to attract a maximum number of customers and retain them in their business for long. Originality/Value: Through the help of primary and secondary data, the study revealed that male youngster customers are more frequently visiting the store. The study reveals that the seating arrangement inside the store is not sufficient. The majority of the customer is visiting Reliance Digital to buy some specific product. Spot purchase activities are happening very rarely. Paper Type: Visual Merchandising on Consumer buying behaviour at Reliance Digital is a case study analysis work.

Decoding Price Promotions: A Moderated Mediation Model of Fairness, Trust, and Deal Proneness

Store pricing policy helps consumers form perceptions about the products as well as the store. This paper studies two commonly used pricing policies, EDLP and HiLo from the customers point of view. We contribute by breaking down these policies based the amount of variability and the degree of predictability. Consumers form perceptions of price fairness and store trust based on these pricing policies and consequently decide their purchase intentions. We observe that price fairness mediates between price variability and purchase intention. Different pricing policies are likely to attract different types of consumers. Some customers are likely to be driven by deals and discounts while others aren't. We show that trust mediates between variability and predictability of pricing and purchase intention for customers who are low on deal-proneness. We find that deal-proneness moderates the relationship between variability in pricing and trust. We use conditional process analysis to arrive at our results.

상가의 소유권 형태가 공실률에 미치는 영향에 관한 연구1)

The purpose of this study is to analyse the impact on the public utility rate according to the type of ownership of the merchant. To this end, Seoul City’s commercial data were used as of the 3rd quarter of 2017 and it is meaningful to analyze the public service rate by dividing the type of store price based on ownership as well as general characteristics of the store. The main results showed positive correlation for variables with floor area exceeding 10,000m2 and other commercial areas and variables with nearby facilities. The high floor area of the building is considered to be high, and the high vacancy rate of other businesses, rather than major commercial and commercial facilities are limited to wholesale and retail sectors. Although the sales facilities are limited to the wholesale and retail sectors, the number of nearby facilities is highly available and thus the public service rate is low. The analysis showed that the vacancy rate of the general merchant was higher than the vacancy rate of the collective merchant, and that, from the perspective of the lessee, the standard building loss rate could be lower because of the relatively large effort to attract tenants.

The Effect of Price and Design of Honda Beat Motorcycle Products on Purchase Decisions at Honda Dealers PT. PAS Sudirman, Bengkulu City

This study aims to determine the effect of price (X1), product design (X2) Honda Beat motorcycles on purchasing decisions (Y) at Honda Dealer PT. PAS Sudirman Bengkulu City. This type of research is descriptive quantitative research, using Random Sampling technique. The data analysis techniques used are Normalization Test, Validity Test, Multicorlinearity Test, Reliability Test, T Test, F test, Multiple Linear Regression, Multiple Correlation Analysis (R), Determination Analysis (R2), using the SPSS program for windows 23.00 . The number of samples is 75 respondents. The results show that it is known from the multiple linear regression equation, Y = 29.391 + 0.083 (X1) + 0.396 (X2) where Y is the purchase decision, the beta coefficient (B) is 29.391, which means that if there are no price and product design variables, the decision purchases amounted to 29,391. The regression coefficient for the price variable (X1) is 0.083, meaning that if the product design has a fixed value and the price increases by 1, the purchase decision will increase by 0.083. The coefficient is positive, meaning that there is a positive relationship between price and purchase decisions, the higher the store price, the higher the purchase decision. The value of the product design coefficient (X2) is 0.396, which means that if the other independent variable (price) remains constant and the product design increases by 1%, the purchase decision (Y) will increase by 0.396. The positive coefficient means that there is a positive relationship between product design and purchase decisions, the better the product design, the greater the chances of consumers in deciding to buy/shop..

The Pass‐Through of a Tax on Sugar‐Sweetened Beverages in Boulder, Colorado

This paper estimates the pass‐through of the largest tax on sugar‐sweetened beverages enacted in the U.S., which is two cents per ounce in Boulder, Colorado. A strength of the paper is that, to achieve as complete a perspective as possible, we estimate the pass‐through of the tax not only to beverage prices in retail stores but also to those in restaurants, and we examine data for the treatment community of Boulder and a comparison community of Fort Collins, Colorado, from four sources: (a) hand‐collected data on prices from stores; (b) Nielsen Retail Scanner Data of store prices; (c) hand‐collected data on prices in restaurants; and (d) web‐scraped data from online restaurant menus. Across the multiple datasets, we find consistent evidence that the tax was largely, but not completely, passed through to consumers. In both the hand‐collected store data and restaurant data, pass‐through is slightly less than 75%, whereas pass‐through is just over 50% using the scanner data; consumers bear most, but not all, of the largest tax on sugar‐sweetened beverages in the United States.

Effects of extrinsic cues on customer attitude and satisfaction towards private labels

The retail sector in India is expected to grow almost twice from $672 billion in 2016 to US$1.1 trillion by the year 2020. One of the major factors that are driving this growth is changing lifestyle of the consumers. Not only it is growing rapidly but the growth has been uniform and slowly moving towards an organised sector. The purpose of this paper is to know whether extrinsic cues like perceived store image, perceived private label quality, perceived private label price has any effect on customer attitude and satisfaction with regard to private label. The data was collected from 209 respondents through a self-administered questionnaire. The statistical measures were conducted through regression to analyse the data. Results show that perceived private label store image and perceived store price unlike perceived private label quality positively affect attitude and satisfaction of customers towards private label.

Factors Influencing Customer’s Retail Chain Store Brand Choice Intention: Empirical Study of Circle K Stores in Hanoi

The retail market in Vietnam continues to grow with the entry of foreign retail brands and the strong rise of domestic businesses in expanding distribution networks and conquering consumer confidence. The appearance of more retail brands has created a fiercely competitive market. Based on the outcomes of previous research results on brand choice intention combined with a customer survey, the paper proposes an analytical framework and scales to examine the relationship of five elements including store image, price perception, risk perception, brand attitudes, brand awareness and retail brand choice intention with a case study of the Hanoi-based Circle K convenience store chain. These five elements are the precondition for retail businesses to develop their brands so as to attract customers.

Measuring Service Quality Effect on Consumer Purchase Intention in Retailing

The objective of this research is to measure the impact of service quality on consumer purchase intention in the retail environment. Implicitly, natural and informative focus has an effect on the customer's buying intentions. For qualitative analysis, data were collected from 477 customer surveys in large retail stores. The findings of the study indicate that quality of service have a positive effect on the purchase intention of the consumer. The results also showed that consumers do not intervene with pricing in large retail stores, as consumers feel that fair pricing are charged by retailers. Most consumers depend on the reputation and efficiency of the service quality.

Overall Store Price Image (OSPI), Antecedents, and Its Effect on Repurchase Intention

This study aims to examine the influence of store price image which is consisting of price fairness images, price pleasure images, price rewards images, price value images on overall store price images (OSPI), and repurchase intentions. The study also examines the role of moderation variables, store image, and price sensitivity on the relationship between OSPI and repurchase intentions. Several 423 respondents were recruited using a purposive sampling method. The structured questionnaire was distributed offline to respondents using paper and pencil test techniques. Data is processed using variant-based SEM (SmartPLS). The results showed that all antecedent variables of store price images have a positive effect on OSPI. Furthermore, OSPI effect positively on repurchase intentions. The study findings show that store image and price sensitivity did not moderate the relationship between OSPI and repurchase intention. This study found interesting results that store image and price sensitivity are mediating variables.

Convergence Study on the Effect of Hair Beauty Salon Store Image, Price, Human Service, and Trust on Customer Satisfaction

Convergence Study on the Effect of Hair Beauty Salon Store Image, Price, Human Service, and Trust on Customer Satisfaction

AN ANALYSIS OF CUSTOMER SHOPPING BEHAVIOR IN AN OUT-OF-STOCK SITUATION: A CASE STUDY AT THE HYPERMARKET GIANT IN PURWAKARTA

Every retailers want to keep their customers from leaving the store. One of the conditions that can make customers leave the store is when they experience out of stock situation. Out of stock is a threat to all retailers, including in Giant Purwakarta. The existence of out of stock conditions can make consumers leave the store or stay in the store. The decision to stay or leave the store is influenced by the characteristics that the consumer have. This study examines how much influence of the customer’s characteristic to the customer response when Giant Purwakarta out of stock. The type of this research is descriptive quantitative by using Pearson Chi-Square formula to analyse the relationship between variables. The results show that there are three characteristics that have significant value with customer response. The three characteristics are: general time constraint, brand loyalty, and store loyalty. On the other hand, the three characteristics of consumers found have no significant value with customer response when Giant Purwakarta facing out of stock. The three irrelevant characteristics are: Store distance, store price, and shopping trip. These results suggest that loyalty and time to shop become the most influential factors on consumer decision making to leave the store or stay in the store when retail store facing out of stock condition.

Assessing the Role of Price Promotion in the Association between Income and Sugar- Sweetened Beverage Purchases

Background: In the U.S., there are income disparities in SSB consumption where lower incomes consume more SSBs. Evidence is limited on whether controlling for price promotions and shopping behaviors would help explain / attenuate the relationship between income and SSB consumption. Alternately, it is possible that SSB price promotions serves as an effect modifier and widens income disparities in SSB consumption due to lower income price sensitivity. The objective of this study is to assess whether the income gradient in SSB purchases is explained by the exposure to price promotion and/or different price promotion-related shopping behaviors, and assess the presence of an interaction between price promotion and income on the association with SSB purchases, while controlling for shopping behaviors. Methods: We conducted a cross-sectional study using a large nationally representative sample from the NielsenIQ Consumer Panel (analytic sample N=11,299) in 2016. Annual promotion frequency (defined as percent of the time experiencing SSBs discounts) for each household were derived using weekly store prices in the NielsenIQ Retailer Scanner Database. A stockpiling index was generated for each household to describe bulk shopping behavior. We compared the association between household income per capita and annual per capita SSB purchase with and without adjusting for price promotion and/or the stockpiling index to determine whether the income gradient in SSB purchase can be explained by the exposure to price promotion, or promotion-related shopping behaviors. Results: Nearly 40% of SSBs were purchased with a price discount. More frequent price promotions were linked to higher SSB purchase. Overall, lower income households purchased substantially more SSBs (i.e., household income per capita ≤$15,000, $15,000 to $30,000, $30,000 to $50,000 categories purchased 54%, 22% and 10% more SSBs than household income per capita ≥$50,000, respectively). However, the association between income and purchase of SSBs was strong regardless of adjustment for price promotion and there was no evidence that the association varied by exposure to price promotions. SSB shopping behaviors were different by income. Lower income households made more frequent trips to purchase SSBs and smaller purchases (i.e., made 12 trips per year, purchased 58 oz. per capita on each trip) while higher income households the opposite (i.e., made 5 trips per year, purchased 72 oz. per capita on each trip). After adjusting for covariates and the stockpiling index, the income gradient in SSB purchase was slightly attenuated but still significant (i.e., households in income per capita ≤$15,000, $15,000 to $30,000, $30,000 to $50,000 categories purchased 32%, 17% and 4% more SSBs than households with income per capita ≥$50,000, respectively). Conclusions: Income disparities in SSB consumption remained after covariate adjustment and after accounting for exposure to price promotion and different shopping behaviors.

Pengaruh Citra Toko dan Persepsi Harga Terhadap Niat Beli Ulang dengan Citra Produk Private Label Sebagai Variabel Mediasi (Studi Empiris pada Hypermart dan Indomaret di Kota Pontianak)

Repurchase intention is an important factor for the company. The intention to repurchase a product arises because consumers are satisfied with the product they bought before. The purpose of this study was to determine the effect of Store image, Price perception and Private label product image to Repurchase intention on Hypermart and Indomaret Pontianak City. Data collection was carried out by distributing questionnaires containing statements with the number of respondents as many as 60 people on Hypermart and 60 people on Indomaret. The sampling technique uses the non-probability sampling method in the form of purposive sampling. Data from the results of questionnaire collection are processed using validity, reliability, classic assumption and path analysis.The results showed: 1) Store image and price perception has a significantly effect to private label product image on Hypermart customers. 2) Store image and price perception has a significantly effect to repurchase intention on Hypermart customers. 3) Private label product image has a significantly effect to repurchase intention on Hypermart customers. 4) Store image and price perception has a significantly effect to private label product image on Indomaret customers. 5) Store image and price perception has a significantly effect to repurchase intention on Indomaret customers. 6) Private label product image has no significantly effect to repurchase intention on Indomaret customers.

QUEM POUCO ABARCA MENOS SEGURA? UM ESTUDO SOBRE OS DÍGITOS FINAIS DOS PREÇOS DE VENDA NO VAREJO DE SALVADOR, BAHIA

The belief that the formation of “psychological” prices would be efficient in increasing sales and generating profits, could be translated into the three hypotheses of the present work: Ha) retail uses psychological prices to achieve greater gains, Hb) size of the retailer reflects the frequency of use of psychological prices and Hc) communication and promotion intensify the use of psychological prices. Prices in retail food channels in the city of Salvador, Bahia, between August and September 2015 were analyzed through the approach in stores with more than ten checkouts, (supermarket chains) and two other neighborhood stores (one checkout). An analysis was made of the frequency of prices in small and large retailers and their possible differences between store prices and promotional inserts. The results showed that the practice of psychological prices is used and all hypotheses were accepted.

Retail Tobacco Marketing in Rural Versus Nonrural Counties: Product Availability, Discounts, and Prices.

Objectives. To assess tobacco product availability, advertised discounts, and prices in rural and nonrural stores, comparing results for two definitions of rural. Method. This geospatial study linked data from marketing surveillance in a representative sample of licensed tobacco retailers in California (n = 1,276) and categorized rural/nonrural stores at the county and tract levels. Data were collected from January to March, 2017, and mixed-models analyses tested for differences by location (rural vs. nonrural). Results. Compared to nonrural stores, rural-county stores were 2.1 (95% confidence interval [CI; 1.2, 3.6]) times more likely to sell chewing tobacco and 2.5 (95% CI [1.4, 4.2]) times more likely to sell roll-your-own. Rural-county stores sold larger packs of cigarillos for less than $1 (coefficient = 0.22, 95% CI [0.05, 0.39]) and charged less for the cheapest cigarette pack regardless of brand (estimated mean difference = $-0.21, 95% CI [-0.39, -0.03]). Contrary to expectation, a popular brand of chewing tobacco cost more in rural-county stores. A tract-level definition of rural reclassified only 1 in 10 stores, and did not substantially alter the results. Overall, 32.9% of stores advertised discounts on chewing tobacco, but this was more common in rural than nonrural census tracts (adjusted odds ratio = 1.81, 95% CI [1.14, 2.88]). Discussion. Evidence that $1 buys more cigarillos in rural-county stores than elsewhere adds to health equity concerns that the prevalence of cheap, flavored tobacco is not limited to neighborhoods characterized by socioeconomic disadvantage, higher proportions of African Americans, and higher proportions of school-age youth. Policies that focus on the retail environment for tobacco are needed to make tobacco less attractive and more costly everywhere, including rural areas.

Price discount strategies in times of increasing price transparency: How price consciousness and price comparison moderate the effect of discount strategy on store price image

This research uses a large set of price promotion field data to better understand the application of price discount strategies by Swiss grocery retailers. Taking the prevalence of these strategies in the Swiss grocery retail market as a basis, we use an online experiment that builds on recent developments in technology usage by consumers and investigate the impact of price comparison on store price image. The results show that Swiss grocery retailers have increased their number of discounts offered over the observation period of two years. In addition, store price image significantly improved with the number of discounted products offered. On the other hand, discount depth had no influence on store price image. These effects, however, are dependent on consumers’ price consciousness and their (non-) usage of a price comparison tool. Lastly, theoretical and practical implications are being provided.

The relationship between accessibility and price – The case of Swedish food stores

Food accessibility has been an important issue for as long as there has been human civilisation. Today, food, at least in the wealthier parts of the world, is accessible to most people. However, there are concerns regarding the market power of major retailers and the availability of affordable food among certain population groups. In this paper, I investigate how well accessibility, the ease with which individuals can reach various destinations, explains food prices in Swedish food stores. I have done this by combining price information on a large number of Swedish food stores from 2010 to 2014 with a state-of-the-art accessibility measure from the Swedish national transport model. I have found a quadratic relationship between accessibility and price, in which prices in the least and most accessible parts of Sweden are 2–3 per cent higher than in the least expensive parts, which are towns and villages around larger cities. The relationship remains significant when adding controls and accessibility is better at explaining price than measures of market structure previously used in the literature.