Store Price Research Articles

Examining Food Access Equity by Integrating Grocery Store Pricing into Spatial Accessibility Measures

Accessibility to food stores offering nutritious and affordable options is critical to ensure urban residents lead healthy lives. However, the uneven distribution of diverse food options in U.S. cities has raised concerns about marginalized communities’ ability to obtain affordable and nutritious food. Transportation-related issues, like car-oriented urban form and sprawl, have created food deserts in cities, making it hard for marginalized communities to access affordable and healthy food. This lack of access has recently drawn the attention of urban planners to address food access-related equity issues. Spatial interaction models can help measure food access by examining how grocery store supply, demand, and proximity affect individuals’ access to necessary food. However, these measures do not always consider the pricing of food items, which can significantly affect food access for low-income individuals and families. We use a highly disaggregated measure tailored to measuring inequitable food accessibility by factoring grocery store pricing into various types of supply and demand. Then, using regional socio-demographic thresholds, we identify target population groups and perform a series of equity analyses using our food accessibility measure. Our results show that walking is more inequitable than driving to food stores and that African American and Hispanic minorities, the elderly, and carless households are more burdened than the reference groups (whites). Using our framework, we identify food deserts and provide spatial and empirical insights for policymakers and planners to address food insecurity and promote equitable access to healthy food.

Embedding moderators of customer-brand love for affecting purchase intention of customers in hypermarket brand stores

Purpose This paper aims to illustrate the impact of brand love on customers’ purchase intention in the presence of store aesthetics, store price image and customers’ demographic variables as moderating variables for hypermarket brand stores. Design/methodology/approach For achieving the objectives, a survey is conducted on the sample of 515 respondents those are the customers of hypermarket brand stores. The collected sample is analysed through structural equation modelling and moderation analysis by using AMOS. Findings The findings indicate various insights in terms of the results of moderation analysis. This study explains a significant moderation of store aesthetics, customers’ age and their local region for the brand love-purchase intention relationship in the research context. Originality/value The present study examines relevant moderators for brand love-purchase intention relationship by empirical means for hypermarket brand stores that is an under-explored researched context in Indian context. It adds considerable insights for academics and managerial practices in the arena of customer-brand love and emotional affiliation.

The Influence of Service Quality and Price on Purchasing Decisions at the Azalea Pharmacy, Sukabumi City

This study took place in Sukabumi City at the Azalea Pharmacy. The study's objective is to find out how customers in Sukabumi City's Azalea Pharmacy feel about the store's pricing and service quality in relation to their final purchase choice. The study methodologies employed included both descriptive and associative analysis. One hundred individuals were selected using a non-probability, purposive selection technique to represent the demographic of customers who frequently purchase goods and services at the Azalea Pharmacy in Sukabumi City. You may put the tool through its paces by doing tests for validity, reliability, and classical assumption. After that, we may go on to multiple linear analysis, partial t-test, simultaneous f-test, study of the coefficient of determination, and effects of multiple correlation. According to the results of the correlation analysis, there is a strong correlation between service quality and purchasing decisions (r=0.723, or 72.3%), which falls within the range of 0.600-0.799. Similarly, there is a strong correlation between price and purchasing decisions (r=0.755, or 75.5%), once again falling within the range of 0.600-0.799. The determination analysis reveals that service quality and price significantly impact purchase decisions (Rsquared = 0.623, or 62.3%). Other variables, not included in this study, account for the remaining 37.7%

Mark Ups and Pass-Through in Small and Medium Retailers for Rice, Tomato Sauce and Oil

Abstract In this paper, we recover and decompose markups, and estimate the pass-through rates from cost to prices in small and medium retail stores for oil, tomato sauce, and rice in Uruguay using a structural model of demand and assumptions about the competitive behavior of producers. The market power for these products has been under study by the Commission of Promotion and Defense of Competition since 2016, and the proposed methodology allows for a deeper exploration of the measurement and understanding of the origin of that market power. In addition to providing a fundamental input for competition defense policies in Uruguay, this study enhances the international academic literature by contributing evidence on cost-to-price pass-through in a developing economy with potentially greater market power than that found in developed countries. About 65 % of the market power under the Nash Bertrand assumption is explained by the ability of firms to differentiate products and 35 % by the ownership structure in the case of oil and sauce. In the case of rice, 49 % is explained by differentiation and 51 % for ownership structure. Finally, the pass-through rates are low for the three products, being under both behavioral assumptions lower than 55 % for the three products.

A new gray optimization model for disposing or re-commercializing unsold goods in reverse logistics networks with a cross-docking center

PurposeThis paper investigates a problem in a reverse logistics (RLs) network to decide whether to dispose of unsold goods in primary stores or re-commercialize them in outlet centers. By deducting the costs associated with each policy from its revenue, this study aims to maximize the profit from managing unsold goods.Design/methodology/approachA new mixed-integer linear programming model has been developed to address the problem, which considers the selling prices of products in primary and secondary stores and the costs of transportation, cross-docking and returning unwanted items. As a result of uncertain nature of the cost and time parameters, gray numbers are used to deal with it. In addition, an innovative uncertain solution approach for gray programming problems is presented that considers objective function satisfaction level as an indicator of optimism.FindingsAccording to the results, higher costs, including transportation, cross-docking and return costs, make sending goods to outlet centers unprofitable and more goods are disposed of in primary stores. Prices in primary and secondary stores heavily influence the number of discarded goods. Higher prices in primary stores result in more disposed of goods, while higher prices in secondary stores result in fewer. As a result of the proposed method, the objective function satisfaction level can be viewed as a measure of optimism.Originality/valueAn integral contribution of this study is developing a new mixed-integer linear programming model for selecting the appropriate goods for re-commercialization and choosing the best outlet center based on the products' price and total profit. Another novelty of the proposed model is considering the matching percentage of boxes with secondary stores’ desired product lists and the probability of returning goods due to non-compliance with delivery dates. Moreover, a new uncertain solution approach is developed to solve mathematical programming problems with gray parameters.

Progression mechanism of urban food desert and categorization of high‐risk blocks through the analysis of changes in food intake demand—A case study of Azabu and Takanawa districts of Minato‐ku, Tokyo, where the prices of grocery stores is rising due to redevelopment

AbstractWe analyzed the mechanism of urban food desert expansion based on data at the block level. According to the food demand curve, elasticity was high, and the nutritional food dietary decreased as store prices increased. The store prices within 500 m of the redevelopment site would tend to increase because luxury supermarkets would dominate, while over 500 m they would often tend to decrease because new non‐luxury supermarkets would compete for opening. There are two types of blocks with a high risk of food desert: A block surrounded by multiple redevelopments or a block whose store price has gone up considerably.

Smart retail: How AI and IoT are revolutionising the retail industry

Technological advancements mean the retail industry is expected to spend US$7.3bn per year on artificial intelligence (AI) from 2022. Retailers that are looking to stay one step ahead are increasingly turning to AI and the Internet of Things (IoT) to help them understand the millions of data points in-store and turn them into insightful information that they can use to improve the speed and effectiveness of their business decisions. This paper demonstrates how AI+IoT (AIoT) can combine to provide a powerful digital transformation experience in retail stores. It also describes some examples of current AIoT implementations in retail stores and explains some of the latest ways retailers can adopt AIoT to drive operational excellence. We will also deep dive into one such example, electronic shelf labels (ESL), showing how these are revolutionising pricing in stores and offering some real-world examples where ESLs are driving efficiency.

ECONOMIC AND LEGAL ASPECTS OF MARKET REGULATION OF SOCIALLY SIGNIFICANT PRODUCTS IN UKRAINE AND POLAND

Purpose. The article is devoted to the economic and legal aspects of regulating the market of socially significant goods and services in Ukraine and the Republic of Poland. State regulation of the cost of products and other socially significant goods was introduced in Ukraine at the legislative level in order to provide additional social and economic guarantees in connection with the spread of the coronavirus disease (COVID-19), and continues during martial law. Scientific approaches to understanding the concepts of socially significant goods and socially significant market are considered. The article analyzes the basic legal acts and economic aspects of regulating the market of socially significant goods and services in Ukraine and strategicgoods in the Republic of Poland. In particular, the following were studied: Law of Ukraine “On prices and pricing”, Resolutions of the Cabinet of Ministers of Ukraine “On measures to stabilize prices for goods of significant social significance, goods of anti-epidemic purpose”, “On regulation of prices for certain types of food products and ensuring the stable operation of manufacturers of food in conditions of martial law”, Law of the Republic of Poland “On foreign trade in goods, technologies and services of strategic importance for the security of the state, as well as for the maintenance of international peace and security, and amendments to some laws”, Resolution of the Ministry of Economy of the Republic of Poland “About the list of goods of strategic importance”. Such important factors as control and responsibility, which contribute to the effective implementation of legal norms in the sphere of price regulation of socially significant goods and services, and as a consequence the achievement of an economic result, have been studied. The price policy for socially significant goods in Ukraine and Poland has been studied, their comparative characteristics have been made, attention has been focused on dairy products. It was established that the average price of socially significant goods in Ukraine is more expensive than in Poland. Design/methodology/approach. The following methods are used in the work: analysis and synthesis – for the analysis of modern regulatory and legal aspects of the regulation of the market of socially significant goods and services in Ukraine and strategic goods in the Republic of Poland; the systematic method was used in the study of average prices for socially significant goods in Poland in July, 2023; the statistical method was used in the study of statistical data of Ukraine, namely in the substantiation of the dynamics of average prices for socially significant goods in Ukraine; the comparison method was used when comparing the average prices for milk in Ukraine and in Poland over the last five years. The purpose of the article is to study the economic and legal aspects of the regulation of the market of socially significant goods and services in Ukraine and the Republic of Poland, in particular, regulatory and legal regulation and economic issues of this sphere. Findings. We have confirmed the hypothesis regarding the sufficient level of regulatory and legal support for the functioning of socially significant goods within Ukraine and Poland. The hypothesis that the average price of socially significant goods in Ukraine is more expensive than in Poland was partially confirmed. For example, milk prices in stores in Poland are cheaper than in stores in Ukraine for 2018–2022, and prices for meat products and potatoes are more expensive in Poland than in Ukraine. Practical implications. The results of the research will be useful to farmers, scientists and entrepreneurs who study the problems of the agricultural sector. Originality/value. The basic legal acts and economic aspects of the regulation of the market of socially significant goods and services in Ukraine and strategic goods in the Republic of Poland are analyzed, a comparison of the price policy for socially significant goods in Poland and in Ukraine is made.

Retail pricing format and rigidity of regular prices

AbstractWe study the rigidity of regular and sale prices, and how it is affected by pricing formats (i.e. pricing strategies). We use data from three large Canadian stores with different pricing formats (Every‐Day‐Low‐Price, Hi‐Lo and Hybrid) that are located within a 1 km radius of each other. Our data contain both the actual transaction prices and actual regular prices as displayed on the store shelves. We combine these data with two ‘generated’ regular price series (filtered prices and reference prices) and study their rigidity. Regular price rigidity varies with store formats because different format stores treat sale prices differently, and consequently define regular prices differently. Correspondingly, the meanings of price cuts and sale prices vary across store formats. To interpret the findings, we consider the store pricing format distribution across the USA and Canada.

Macroeconomic Implications of Uniform Pricing

We compile a new database of grocery prices in Argentina. We find uniform pricing both within and across regions—i.e., prices almost do not vary within the stores of a chain. In line with uniform pricing, prices in stores of chains operating in one region react to changes in regional employment while prices in multiregion chains do not. Using a quantitative regional model with multiregion firms and uniform pricing, we find a one-half smaller elasticity of prices to a regional than an aggregate shock. This result highlights that some caution may be necessary when using regional shocks to estimate aggregate elasticities. (JEL D22, L11, L81, O14, O18, R32)

Competition with list prices

Retail prices in stores are often lower than widely advertised list prices. We study the competitive role of such list prices in a homogeneous product duopoly where firms first set list prices before setting possibly reduced retail prices. Building on Varian (1980), we assume that some consumers observe no prices, some observe all prices, and some only observe the more salient list prices. We show that when the latter group chooses myopically, firms' ability to use list prices lowers average transaction prices. This effect is weakened when these consumers are rational. The possibility to use list prices facilitates collusion.

The impacts of store price image and brand image on repurchase intention with customer satisfaction as mediation

Transmart needs the right strategy to increase consumer desire to make repeat purchases at Transmart MX Mall Malang during the post-pandemic recovery period. Repurchase intention can be formed from a positive brand image and customer satisfaction. Consumer perception of price or price image positively influences repurchase intention. This research was built using Consumer Behaviour Theory. This study aimed to test and analyze store price and brand image's influence on repeat purchase intention mediated by consumer satisfaction at Transmart MX Mall Malang. This research uses Transmart MX Mall Malang as the research object. The results of this study indicate that there is an influence between store price image and consumer satisfaction. This study also shows an influence between store price image and repurchase intention. In addition, this study shows an influence between brand image and consumer satisfaction. There is an influence between brand image and repurchase intention. This study's results indicate an influence between store price image and repurchase intention through consumer satisfaction. Finally, this study's results indicate an influence between brand image and repurchase intention through consumer satisfaction.

PROGRESSION MECHANISM OF URBAN FOOD DESERT AND CATEGORIZATION OF HIGH_RISK BLOCKS THROUGH THE ANALYSIS OF CHANGES IN FOOD INTAKE DEMAND

We analyzed the mechanism of urban food desert expansion based on data at the block level. According to the food demand curve, the elasticity was high and the nutritional value diet decreased as the store prices increased. The store prices within 500m from the redevelopment would tend to increase because luxury supermarkets would dominate, while over 500m they would often tend to decrease because new non-luxury supermarkets would compete for opening. There are only two types of blocks with high risk of food desert: a block surrounded by multiple redevelopments or a block whose store price has gone up considerably.

Food Expensiveness in Scotland's Remote Areas: An Analysis of Household Food Purchases☆

AbstractThe purpose of this paper is to investigate whether consumers in Scotland's remote areas suffer from food prices that are higher than the average national prices (i.e., whether a “remoteness premium” exists). The question has been raised by several organizations in those communities looking at the high prices in local stores. This paper provides a new perspective using actual purchasing prices of a sample of 5,252 households in Scotland for 2017 and 2018. In this way, households' ability to shop for lower prices is considered, unlike in previous studies. An expensiveness index was computed to measure the expensiveness of food at household level and control for differences in quality. It showed that consumers in remote areas pay a small premium (0.3 to 0.4 percent) with respect to average prices, which is statistically significant but economically not relevant. To understand the effect of several factors, AHEI was regressed on a number of explanatory variables including local area characteristics and household demographics and consumers' shopping strategy. The results were used to simulate three hypothetical scenarios related to impact of changes in the population's age, access to discount stores, and social deprivation on food expensiveness.

Psychological price perception may exert a weaker effect on purchasing decisions than previously suggested: Results from a large online experiment fail to reproduce either a left-digit or perceptual-fluency effect.

Retail store prices are frequently set to either a just-below (e.g., $1.99) or rounded to (e.g., $2.00) integer levels. Previous studies proposed two price-perception effects that may underly such psychological pricing strategies. First, the left-digit effect (LDE) assumes consumers read prices left-to-right. Cognitive limitations let consumers overweight the impact of digits on the left side of the price while underweighting digits on the right side of the price. This effect appears to conflict with the contradictory perceptual fluency effect (PFE), which proposes that a rounded price is more perceptual fluent and, thus, more attractive to consumers. To address these paradoxical effects, we conducted an online experiment with 266 participants making a total of 4788 purchasing decisions where we systematically varied the purchasing prices of otherwise identical lottery tickets across two price levels. Against expectations, we found no support for either of the two price-perception effects. We propose three possible explanations of these null results.

How to regulate vaping products to advance cancer prevention: Evidence from online stores.

e22502 Background: The use of electronic cigarettes has significantly increased in the past decade, and online stores are one of the most common outlets for e-cigarette users to purchase vaping products. The goal of this study is to examine the appeal of different e-liquid flavors to vapers, using a revealed preference method to estimate consumer demand. Methods: We collected data on e-liquid sales prices, volume (in ml), and a variety of product flavors, from online vaping stores using web data extraction. We standardized prices for e-liquid products and used the hedonic pricing model to assess the associations between standardized e-liquid prices and flavors, controlling for nicotine concentration (in mg) and product VG/PG ratio. In total, we collected data of 10,870 e-liquid products from four popular online vaping stores that sell nationwide across the U.S. Results: Higher e-liquid prices (standardized to $/ml) are associated with higher nicotine concentrations. E-liquid products with fruit tobacco flavors are associated with higher sales prices. E-liquid prices are higher when VG/PG ratio deviates from 70/30 except for 90/10: the prices of e-liquid products with a 90/10 VG/PG ratio are lower than the prices of products with a 70/30 ratio. All of the findings above are statistically significant at a 5% level. Conclusions: Higher nicotine concentration and fruit flavors are associated with higher e-liquid prices in national online vaping stores, suggesting that they are preferred attributes and are in greater demand among vapers in the market of heterogeneous e-liquid products.

Theoretical and practical aspects of consumer basket formation in modern Ukraine

The paper considers topical and debatable issues of consumer basket formation in modern Ukraine. The content of the concept of consumer basket and subsistence level of Ukrainians is analyzed, their interdependence is outlined. It was highlighted that terminological, systematic methods, classification method, as well as general scientific research methodology were important for solving research problems. It was found that the subsistence level is the basic state indicator of the social standard, on the basis of which the state determines social guarantees of income, as well as health care, education and housing and communal services. The attention is drawn to the fact that the causes of poverty in Ukraine are economic, because the consumer basket and the subsistence level are not related to the prices of goods and services, but primarily to the payment of utilities. It is emphasized that when compiling the consumer basket, not individual types and brands of products and goods are taken into account, but simplified (averaged) products of groups. It was stated that the set of the consumer basket is detached from the real prices in stores and the needs of the population. It is concluded that the consumer basket is a guarantee of state development in both social and economic dimensions. The higher the standard of living of the country's population, the better the economy works and the country develops. It is emphasized that when assembling a consumer basket, not individual types and brands of products and goods are taken into account, but simplified (averaged) goods of groups. It is stated that the modern set of the consumer basket is divorced from the real prices in stores and the needs of the population. It is concluded that the consumer basket is a guarantee of the development of the state in both social and economic dimensions. The higher the standard of living of the country's population, the better the economy works and the country develops.

Asuransi dan Pandemi Covid-19: Peran Persepsi Konsumen dalam Keputusan Pembelian

Consumer perception is a view or thought process used to make decisions in buying products or services that will be consumed. One of them is in purchase of insurance. This study aims to determine the influence of consumer perception on insurance purchase decisions at PT. Prudential Life Assurance during the Covid-19 pandemic in Bandung. This consumer perception is divided into 6 dimensions consisting of store image, product quality, price, promotion, service quality, and value. This research method uses quantitative. The population in this study are all Prudential customers who live in Bandung. The sampling technique used is non-probability sampling with purposive sampling type with a sample size of 100 people. Data was collected by means of a questionnaire. The data analysis technique used is multiple linear regression analysis. The results of the study showed that consumer perception had a positive and significant effect on purchase decision. The dimension of service quality has a significant effect on purchase decision, while the dimensions of store image, product quality, price, promotion, and value have no significant effect on purchase decision. The dimension of service quality is the dimension of the consumer perception variable which dominantly influences purchase decision

FOOD CHAIN PRICE DIFFERENCES – THEORETICAL AND METHODOLOGICAL ASPECTS

The article is for illustrative purposes and presents the general situation of price differences in the food chain in theoretical and methodological aspects. The main objective of the research was to assess the market situation of the purchase of agricultural products against a background of prices in retail stores. The research was conducted using the observational method in mid-2021. The subject of the study were the 20 most popular agricultural products, purchased directly from the agricultural producer and through retail chains as products ready for sale unchanged from the moment of purchase. The volatility of prices between different links in the food chain was also determined using Pearson’s linear correlation. The differences in the estimated percentage mark-up of selected retail chains in relation to the obtained values of the price relation index are presented. It was found that the analyzed price differences constituted a complex research problem and were conditioned by many determinants. The relation between the prices offered for agricultural products in purchase and retail prices was often 200%. The main reason for the price differences was the extensive supply chain between the farmer and the chain of stores. The results of the correlation of price volatility allowed to conclude that there was a phenomenon related to the transfer of price risk in the scope of subsequent links of the food chain.

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.