Store Price Research Articles

Variations in the Availability and Price of Healthier Food Options by Store Type and Urban–Rural Setting

We used a comprehensive ground-truthed data set collected in 2006 from all traditional, convenience, and nontraditional retail food stores in the 6 rural and one urban counties of the Brazos Valley in Central Texas (n = 335) to identify location and store type, categories, and prices of healthier food options for food stores. There were small significant differences in availability and average price between rural and urban counties across all store types. Superstores provided substantially more availability and cheaper healthful foods, especially fresh items. Convenience stores and dollar stores improved the availability of healthier foods in both rural and urban settings. However, the prices offered by convenience stores were considerably higher in general.

Negative price-image effects of appealing store architecture: Do they really exist?

Retailers often worry about the negative effects of appealing exterior architecture on their store's price image, especially the price-level perception and the ease of price evaluation. Findings from prior laboratory experiments support these concerns, while field studies find no such effects. The present study explains this inconsistency by analyzing the moderating effects of price and retail brand information available to customers in real shopping situations. The results show that negative effects of appealing exterior architecture do not exist when retail brand information is available. The availability of price information neutralizes the negative effects of appealing architecture on the price-level perception, but not on the ease of price evaluation.

Understanding retail strategy and shopping behaviour: Perspectives from a developing country

This research indicates that in order for retailers to achieve their primary objective of increasing the amount of customer traffic into their stores, some powerful, highly effective and strategic tools that retailers possess need to be utilised in an effective manner – in order to meet their objectives. This research has been developed to examine the strategies that retailers can utilise – in order to influence the customers’ preference to shop in their stores. From the multitude of strategic choices available for each decision, a retailer can choose any combination. A survey was conducted, in order to collect data on customer behaviour, recruiting, store design, retail marketing, Supply chain management (SCM), customer relationship management (CRM) – as well as a few other criteria – in the South African retail sector. This descriptive study establishes whether a retailer who makes an initial choice about which strategy to implement, complies with the existing understanding on the customers’ preferences. Patterns and trends were detected when studying the determinants of various strategic retail combinations for retailers. The data indicated asymmetric evaluations of choices, in combination with a few distinct patterns. Additionally, a few associations between store preferences and price were identified with specific locations for the customers. Some combinations are more alike than others; and a concern exists that the pricing strategy in isolation fails to portray a complete picture. The study reveals that retailers should be more customer-focused; while at the same time, providing the requisite skills to their employees, in order to retain their existing customers, and to attract new customers. Key words: Retailers, customers, merchandise, retail management, consumer behaviour.

Creation of Price Image Measurement Scale and Comparing Perceptions of Price Image Dimensions of Two Sales Formats

The measures of price image proposed by the literature are mostly multidimensional and fail to consider the richness of this concept. This study proposes a measure of price image. An exploratory and qualitative study helped generate a pool of items. Then the obtained list has been subject to a questionnaire-based survey in order to determine the dimensions that would better conceptualise price image in the context of purchasing cosmetic products and perfumes. Three dimensions have been identified: the dimensions of “price security”, “proposed brand” and “value”. These dimensions have been then compared to unveil the difference between a specialised store price image and a non-specialised store price image. A mean difference test is conducted to attest for the hypothesis that a non-specialised store price image is evaluated more positively than a specialised store price image. Our study is nonetheless limited. The implications and limitations of our study open up new research venues worth exploring.

The Role of Price in the Behavior and Purchase Decisions of Compulsive Buyers

The present research examines the relationship between consumers’ tendencies to buy compulsively and their response to price based on a survey of customers of an Internet clothing retailer. The research findings suggest that compulsive buyers possess greater knowledge of store prices and are more brand conscious and prestige sensitive in comparison with non-compulsive buyers. Moreover, compulsive buyers derive greater transaction value from price promotions and are more price conscious and sale prone than non-compulsive buyers.

Consumer Service Quality Assessments and Future Revenues in Small Businesses: A Case Study

This study is based on shopper assessments of grocery store services. It suggests that there is a direct relationship between consumers' attitudes regarding a store's service quality and their intent to continue to choose that store for much of their ongoing shopping needs, given that the service remains the same or improves. The findings, while limited, posit a possible connection between service quality satisfaction and potential ongoing revenue. In addition, it is suggested that store pricing, store formats, and shopping enjoyment may mitigate ongoing choice. The findings should encourage service-focused small businesses not currently doing so to consider putting quality measurements in place to guide the satisfaction-revenue connection.

Neighborhood Impact on Healthy Food Availability and Pricing in Food Stores

Availability and price of healthy foods in food stores has the potential to influence purchasing patterns, dietary intake, and weight status of individuals. This study examined whether demographic factors of the store neighborhood or store size have an impact on the availability and price of healthy foods in sample of grocery stores and supermarkets. The Nutrition Environment Measures Study-Store (NEMS-S) instrument, a standardized observational survey, was utilized to evaluate food stores (N = 42) in a multi-site (Vermont and Arkansas) study in 2008. Census data associated with store census tract (median household income and proportion African-American) were used to characterize store neighborhood and number of cash registers was used to quantify store size. Median household income was significantly associated with the NEMS healthy food availability score (r = 0.36, P < 0.05); neither racial composition (r = -0.23, P = 0.14) nor store size (r = 0.27, P = 0.09) were significantly related to the Availability score. Larger store size (r = 0.40, P < 0.01) was significantly associated with the NEMS-S Price scores, indicating more favorable prices for healthier items; neither racial composition nor median household income were significantly related to the Price score (P's > 0.05). Even among supermarkets, healthier foods are less available in certain neighborhoods, although, when available, the quality of healthier options did not differ, suggesting that targeting availability may offer promise for policy initiatives. Furthermore, increasing access to larger stores that can offer lower prices for healthier foods may provide another avenue for enhancing food environments to lower disease risk.

RFID-enabled item-level retail pricing

A major advantage that online retailers possess that their brick-and-mortar counterparts do not is their ability to continually vary item price. Given the competition among these retailers, it is increasingly becoming a necessity for brick-and-mortar retailers to develop a coherent and profitable pricing strategy. Recent advances in RFID technology can be beneficially utilized in this context. We develop a knowledge-based adaptive learning framework for item-level dynamic pricing in retail stores. Specifically, we consider retail stores that issue membership cards that the members may use to receive promotions and other benefits. Instantaneous snapshots of customers in the store and their characteristics are used to dynamically vary retail store item-level prices. Using simulation, we illustrate the dynamic of the proposed framework. Preliminary results confirm the beneficial aspects of such a framework for item-level dynamic pricing in a retail store environment.

How do Consumers create a Store Price Image from Flyers

How do Consumers create a Store Price Image from Flyers

Image Effects and Rational Inattention in Internet-Based Selling

We investigate the extent to which certain price points occur in Internet-based selling, and theorize about what drives the observed regularities and variations. This research explores theories based on consumer perceptions of price and quality images, and rational inattention to price-endings. To accomplish this, we specify and test empirical models for price-endings using over 1.5 million daily observations on multiple product categories sold by ninety of Internet-based retailers that were collected over a two-year period. Our results show that a firm's online reputation and relative price levels have effects on the chosen price-endings with respect to different product categories and 9-ending prices increase consumer purchases. The results support an image theory of store quality and price. We also find that the use of 9-ending prices varies across Internet selling formats in a way that is consistent with differences in the rational attentiveness that these channels engender with the consumers who use them. Finally, this research provides additional impetus for future research on the role of information technology in firm price-setting, and gives new insights for marketers who wish to optimize price-setting decisions in the competitive online environment of Internet retailing.

Customer satisfaction in food retailing: comparing specialty and conventional grocery stores

PurposeThe purpose of this paper is to compare and contrast customer perceptions related to satisfaction with conventional grocery stores as compared to specialty grocery stores. The study examines store attributes of product assortment, price, quality, and service in order to determine which attributes have the greatest impact on store satisfaction for each store format.Design/methodology/approachA mail survey was sent to a sample of specialty and conventional grocery store customers. The ten state sample was drawn from US households located in postal (ZIP) codes in areas where national specialty stores (e.g. whole foods) were located.FindingsPerception of satisfaction were higher among specialty grocery store customers compared to conventional grocery store customers. For both store formats, store price, product assortment, service and quality positively influenced satisfaction. Stepwise regression indicated that each store attribute contributed differently to store satisfaction for conventional and specialty store formats.Research limitations/implicationsThe results demonstrate that price, product assortment, quality, and employee service influence store satisfaction regardless of store type (conventional stores or specialty stores). However, the degree of influence of these attributes varied by store type. The results imply that while specialty store shopper satisfaction characteristics are clearly delineated, conventional store shopper characteristics are more difficult to pinpoint. Research limitations include a sample that is more highly educated and has higher incomes than the average American household.Originality/valueDespite the growth of new product categories and new industry players, few studies have investigated customer satisfaction within the retail food industry. Comparisons of specialty and conventional food stores are equally scarce.

Memory-Based Store Price Judgments: The Role of Knowledge and Shopping Experience

This paper investigates the processes underlying consumers’ memory-based store price judgments. The numerosity heuristic implies that the greater the number of relatively lower priced products at a store that consumers can recall, the lower will be their overall price image of the store. That is, people use the number of recalled low-price products to judge the overall store price image. We show that this expectation holds only for knowledgeable consumers. Instead, less knowledgeable consumers use the ease with which low-price products are recalled (i.e., the availability heuristic) as a cue to make store price judgments. Therefore, the fewer low-price products they recall, the easier their recall task, and the lower their price perceptions of the store. Field studies using different manipulations tested and confirmed these predictions. Managerial implications for retailers are offered. Theoretical implications for behavioral price perceptions, memory-based judgments, and the use of heuristic cues are also discussed.

Availability And Prices Of Foods Across Stores And Neighborhoods: The Case Of New Haven, Connecticut

Two studies compared food availability and prices in large and small stores across neighborhoods of varying income levels in New Haven, Connecticut. The findings suggest that supermarket access in lower-income neighborhoods has improved since 1971, and average food prices are comparable across income areas. Despite this progress, stores in lower-income neighborhoods (compared to those in higher-income neighborhoods) stock fewer healthier varieties of foods and have fresh produce of much lower quality. Policies are needed not only to improve access to supermarkets, but also to ensure that stores in lower-income neighborhoods provide high-quality produce and healthier versions of popular foods.

Understanding consumer's attitude towards retail store in stockout situations

Purpose –This study aims to examine empirically how consumers' attitude towards retail stores gets affected by situational, consumer, store and product characteristic variables when they face out‐of‐stock situations.Design/methodology/approach– Survey method for data collection was used. Data were collected from a sample of 1,207 retail customers in India's unorganized retail sector across five product categories in Varanasi, India.Findings– Results showed that six of the independent variables considered, namely, shopping attitude of respondent, store loyalty (SL), perceived store prices, store distance, shopping frequency, and brand loyalty (in order of importance of impact) significantly influenced consumers' attitude towards retail store in out‐of‐stock.Research limitations/implications– Data were collected only for five product categories and for unorganized retail setting because of which results and findings are not generalizeable to beyond these boundaries.Practical implications– Implications of this for retailers and future research are discussed.Originality/value– Since attitudes towards retail outlets are very important in determining future SL and subsequent profitability, understanding of consumer store attitudes in negative events like stockout is importantly for retailers. The paper provides crucial insights to retailers by identifying independent variables that must be considered while designing their operations.

When Little Things Mean a Lot: On the Inefficiency of Item‐Pricing Laws

Item‐pricing laws (IPLs) require a price tag on every item sold by a retailer. We study IPLs and assess their efficiency by quantifying their costs and comparing them to previously documented benefits. On the cost side, we posit that IPLs should lead to higher prices because they increase the costs of pricing and price adjustment. We test this prediction using data collected from large supermarket chains in the tri‐state area of New York, New Jersey, and Connecticut. We find that IPL store prices are higher by about 20¢–25¢ per item on average. As a control, we use data from stores that use electronic shelf labels and find that their prices fall between IPL and no‐IPL store prices. We compare the costs of IPLs to existing measures of the benefits and find that the costs are an order of magnitude higher than the upper bound of the estimated benefits.

An examination of trends in amount and type of cigarette advertising and sales promotions in California stores, 2002–2005

Background:Cigarette companies spend more of their marketing dollars in stores than in any other venue. In 2005, they spent 88% of a total of $13.1 billion to advertise and promote...

Ross Stores, Inc.

AbstractRetail ‐ Apparel and Accessory Stores (MIC: 5.8 SIC: 5651 NAIC: 448140)Ross Stores operates two chains of off‐price retail apparel and home accessories stores, targeting men and women between the ages of 18 and 54, primarily in middle income households. Co. provides an assortment of apparel, accessories, footwear and home fashions at savings of 20.0% to 60.0% below regular department and specialty store prices. Co.'s dd's DISCOUNTS? stores feature moderately‐priced assortments of apparel, accessories, footwear and home merchandise at savings of 20.0% to 70.0% off moderate department and discount store regular prices. As of Feb 3 2007, Co. operated 797 stores, of which 771 were Ross stores in 27 U.S. states and 26 were dd's DISCOUNTS? stores in California.

The effectiveness of “scratch and save” promotions: the moderating roles of price consciousness and expected savings

PurposeThe main purpose of this paper is to examine consumer perceptions of “scratch and save” (SAS) promotions, which are popular store‐level promotional tools. This paper particularly focuses on investigating the moderating effects of consumers' price consciousness and savings expectations.Design/methodology/approachTwo laboratory experimental studies were employed to examine consumer responses to SAS promotions.FindingsThe results of two experiments show that SAS promotions positively affect consumer perceptions of offer value and store prices, and consumers' intentions to shop and spread positive word‐of‐mouth. In particular, the effects of SAS promotions are moderated by consumer price consciousness and expected savings. Furthermore, the first study shows that the level of claimed savings of SAS promotions does not favorably affect consumer reactions. The second study also shows that consumers' discounting of expected savings increases as the level of claimed savings of SAS promotions increases.Research limitations/implicationsAlthough SAS promotions are widely used by various types of retailers, there really is little known as to how consumers respond to SAS promotions. By providing evidence of the effectiveness of SAS promotions, this paper enables pricing researchers to extend issues related to such promotional tools.Practical implicationsFor retailers, the most distinctive finding of this paper is that the level of claimed savings may not significantly affect consumer perceptions and shopping intentions, although an SAS promotion would be an effective promotional tool.Originality/valueAs a preliminary effort to examine the effects of SAS promotions, this paper offers a discussion of the future research opportunities.

Ross Stores, Inc.

AbstractRetail ‐ Apparel and Accessory Stores (MIC: 5.8 SIC: 5651 NAIC: 448140)Ross Stores operates two chains of off‐price retail apparel and home accessories stores, targeting men and women between the ages of 18 and 54, primarily in middle income households. Co. provides an assortment of apparel, accessories, footwear and home fashions at savings of 20.0% to 60.0% below regular department and specialty store prices. Co.'s dd's DISCOUNTS® stores feature moderately‐priced assortments of apparel, accessories, footwear and home merchandise at savings of 20.0% to 70.0% off moderate department and discount store regular prices. As of Feb 3 2007, Co. operated 797 stores, of which 771 were Ross stores in 27 U.S. states and 26 were dd's DISCOUNTS® stores in California.

Super Value Grocery Store: The Bahamian Super Market

In this case, Super Value Grocery Store in Nassau, Bahamas experiences a rapid decline in sales. Marketing and promotional efforts to improve sales failed to yield any positive results. A survey of people's attitude towards Super Value indicated that the store's prices were too high. Furthermore, many Bahamians preferred purchasing their grocery items from Miami, Florida. The case raises issues of pricing to maximize organizational value. It highlights problems associated with using a cost-based pricing strategy in a competitive environment. Students are motivated to critically analyze the source of Super Value's poor sales performance. A holistic approach to determining price that includes a thorough analysis of competition, cost, and customer demand is emphasized in this case.