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Author: Jorge Florez Acosta Publisher: ISBN: Category : Languages : en Pages : 0
Book Description
This dissertation consists of three essays on the empirical analysis of grocery retailing and consumer shopping behavior. The first chapter focuses on supermarket loyalty programs and their impact on the demand for private labels. Supermarkets often link loyalty rewards to private label purchases, What are supermarkets' motivations to do this? This empirically examines this link using scanner data on grocery purchases of French households and structural methods of demand estimation. Results are consistent with the industry lore: private labels are less valued products relative to quality-equivalent national brands. However, members of loyalty programs have a larger valuation of private labels than non-members. Moreover, the more prone to subscribe to LPs a customer is, the larger her sensitivity to a price increase and the weaker the expected effects on the demand for private labels. The second chapter, joint with Daniel Herrera Araujo, is inspired by a number of theory papers showing that when shopping costs, that rationalize the observed heterogeneity in consumer shopping patterns, are introduced in economic analysis, policy conclusions can change dramatically. We structurally identify consumer shopping costs using scanner data on grocery purchases of French households. We present a model of demand for multiple stores and products consisting of an optimal stopping problem in terms of individual shopping costs. This rule determines whether to visit one or multiple stores at a shopping period. We then estimate the parameters of the model and recover the distribution of shopping costs. We quantify the total shopping cost in 18.7 € per store sourced on average. This cost has two components, namely, the mean fixed shopping cost, 1.53 € and mean total transport cost of 17.1 € per trip. The third chapter empirically examines the role of nonlinear contracts between manufacturers and retail stores, and Resale Price Maintenance (RPM) on nominal price stability. According to the literature the incomplete transmission of costs shocks into retail prices is explained by the existence of markup adjustment and price adjustment costs. The vertical conduct of the industry and the use of RPM can introduce further price stickiness or reinforce it. I present a structural model of vertical relations allowing for two-part tariffs and RPM, and accounting explicitly for retail price rigidity by including fixed costs of price adjustment in retailer's profit function. Using micro data on sales of breakfast cereals from a large supermarket chain in Chicago, I estimate demand, retrieve margins, and compute bounds for retail price adjustment costs. I find that these costs lie between 1.6% and 3% of its total revenue a year, on average.
Author: Jorge Florez Acosta Publisher: ISBN: Category : Languages : en Pages : 0
Book Description
This dissertation consists of three essays on the empirical analysis of grocery retailing and consumer shopping behavior. The first chapter focuses on supermarket loyalty programs and their impact on the demand for private labels. Supermarkets often link loyalty rewards to private label purchases, What are supermarkets' motivations to do this? This empirically examines this link using scanner data on grocery purchases of French households and structural methods of demand estimation. Results are consistent with the industry lore: private labels are less valued products relative to quality-equivalent national brands. However, members of loyalty programs have a larger valuation of private labels than non-members. Moreover, the more prone to subscribe to LPs a customer is, the larger her sensitivity to a price increase and the weaker the expected effects on the demand for private labels. The second chapter, joint with Daniel Herrera Araujo, is inspired by a number of theory papers showing that when shopping costs, that rationalize the observed heterogeneity in consumer shopping patterns, are introduced in economic analysis, policy conclusions can change dramatically. We structurally identify consumer shopping costs using scanner data on grocery purchases of French households. We present a model of demand for multiple stores and products consisting of an optimal stopping problem in terms of individual shopping costs. This rule determines whether to visit one or multiple stores at a shopping period. We then estimate the parameters of the model and recover the distribution of shopping costs. We quantify the total shopping cost in 18.7 € per store sourced on average. This cost has two components, namely, the mean fixed shopping cost, 1.53 € and mean total transport cost of 17.1 € per trip. The third chapter empirically examines the role of nonlinear contracts between manufacturers and retail stores, and Resale Price Maintenance (RPM) on nominal price stability. According to the literature the incomplete transmission of costs shocks into retail prices is explained by the existence of markup adjustment and price adjustment costs. The vertical conduct of the industry and the use of RPM can introduce further price stickiness or reinforce it. I present a structural model of vertical relations allowing for two-part tariffs and RPM, and accounting explicitly for retail price rigidity by including fixed costs of price adjustment in retailer's profit function. Using micro data on sales of breakfast cereals from a large supermarket chain in Chicago, I estimate demand, retrieve margins, and compute bounds for retail price adjustment costs. I find that these costs lie between 1.6% and 3% of its total revenue a year, on average.
Author: Yasin Yilmaz Publisher: GRIN Verlag ISBN: 3346198278 Category : Business & Economics Languages : en Pages : 90
Book Description
Master's Thesis from the year 2020 in the subject Business economics - Offline Marketing and Online Marketing, grade: 1,0, University of Salford, language: English, abstract: Despite widespread popularity in Europe, particularly in the UK and the Netherlands, demand for Online Grocery Retail in Germany, which is economically just as strongly developed, appears to be rather low. This study therefore aims to find out which factors encourage or discourage consumers in Germany to order groceries online. Businesses need to make the online grocery business model transparent and useful from a marketing perspective. The clear advantages of this way of shopping groceries must be communicated. Furthermore, psychological aspects of consumers must be understood and taken into account in the retailers' strategy. Last but not least, importance must be attached to data protection and environmental protection; this message must be conveyed. By providing current insights into consumers' preferences and wishes on their personal grocery shopping behavior, the findings can be used by Businesses and especially Grocery Retailer to shape the grocery shopping of the future. Based on the hypothesis that that there is some degree of resistance to the utilisation of technology which is potentially inhibiting German consumers utilising actively embracing online grocery retail, the Technology Acceptance Model and its extension was chosen as a conceptual framework in order to test this assumption. To test the findings of the Literature Review, 25 semi-structured interviews were conducted in the empirical part of this study. The target group of the interviewees were students aged between 18 - 30, 13 of them female and 12 male. The main findings are that the reasons for the low demand for online grocery retailing in Germany are cultural. German consumers are more likely to trust new trends if they have been on the market and established for a longer period of time. The high density of grocery stores favours the fact that German consumers do not see any real added value in this service and thus no real usefulness. In addition to ease of use and usefulness, demographic aspects must also be taken into account in order to make the online grocery trade successful in Germany. The study focused on a specific age and target group. For practical reasons, the number was limited to 25 interviews. For further research it is recommended to analyze further age and target groups in order to gain further differences in the individual aspects.
Author: An-Shih Liu Publisher: ISBN: Category : Brand choice Languages : en Pages : 274
Book Description
This dissertation is an empirical study of demand and supply in differentiated products markets using supermarket scanner data on two particular product categories - canned tuna and hot-breakfast cereals. First, I study the impact of retailers' price promotions on consumer demand and retailer profits in the canned-tuna product category. Since canned tuna is storable, I examine whether consumers stock up during sales. The results suggest that only a limited amount of stockpiling exists in this product category. Since inventory is not very important, consumer demand is thus modeled by a static demand model with a random-coefficients-nested-logit specification, which is estimated by the Markov Chain Monte Carlo method. The unit-sales decomposition results show that on average 36% of the demand response to price promotions comes from brand-switching, so market expansion effects due to consumers switching from the outside good and to higher quantities usually dominate the brand-switching effect. Using the demand estimates, I compute optimal retail prices assuming that stores are local monopolists and choose prices to maximize static category-level profits. I find that regular prices at "high-low" stores are typically at or slightly below the optimal prices, but that regular prices at "every-day-low-price" stores are substantially below the optimal prices. These results suggest that retail price levels and price promotions are more likely related to local market conditions such as retail competition. In addition, I study the effects of store-brand (SB) entry on the demand elasticities of incumbent national brands (NB), consumers' substitution patterns for national and store brands, and the implications for consumer welfare in the hot-breakfast-cereals product category. A random-coefficients model of consumer demand is estimated by the generalized-method-of-moments approach. The empirical findings are: (1) After the entry of SB's, demand becomes more elastic for non-imitated NB's, and either more elastic or shows no change for imitated NB's; (2) in general, substitution patterns for NB's and SB's are asymmetric, i.e., when the prices of their favorite products increase, most NB buyers tend to substitute to other NB products, but SB buyers will substitute to the corresponding imitated NB's; (3) the increase in consumer surplus due to SB entry is trivial for an individual consumer, but the aggregate benefit could be quite substantial.
Author: José Alonso Pisfil Manchego Publisher: GRIN Verlag ISBN: 3346831094 Category : Business & Economics Languages : en Pages : 143
Book Description
Master's Thesis from the year 2022 in the subject Business economics - Market research, grade: 1,3, University of applied sciences, Munich, language: English, abstract: The COVID-19 pandemic raised the demand for online food shopping in traditional Peru and Germany. This urged an in-depth examination since consumer attitudes in specific cultural contexts had received little attention. Thus, this research aims to ascertain the factors that significantly influence Germans' and Peruvians' intention to use online grocery shopping, as well as to identify significant differences between the two countries. Two particular research topics serve as the framework for this study, which are as follows: Are there significant differences in the usage of online grocery shopping between Germans and Peruvians during the COVID-19 pandemic? What factors significantly influence Germans and Peruvians' online grocery shopping usage during the COVID-19 pandemic? As indicated by both research questions, this study's primary emphasis is on online grocery shopping behavior during the COVID-19 pandemic that peaked one year ago, in the year 2020, yet has persisted worldwide. Therefore, this study focuses only on empirical data from the COVID-19 outbreak since online grocery shopping in both nations was not a significant event before the pandemic. Furthermore, there was no previous scientific research on online grocery shopping’s behavior in Peruvian literature, preventing comparison between the two countries. Given that the pandemic's breakout aided in the partial adoption of online grocery shopping in both nations, the researcher judged it appropriate to frame both research questions exclusively in terms of the COVID-19 pandemic to capture better the influence of the digital transition that was experienced in 2020.
Author: Anna Olga Smolnik Publisher: Cuvillier Verlag ISBN: 3736984669 Category : Business & Economics Languages : en Pages : 124
Book Description
The dissertation consists of three empirical studies and takes a closer look at price fluctuations using German gasoline prices as an example for a homogenous good. It analyzes consumers’ reaction to price fluctuations and respectively the pricing behavior of firms. The first paper, which was developed with co-authorship, explores consumers’ online price search effects on the pricing behavior of firms (gasoline price level and price dispersion). As regulators have recently implemented a mechanism for reporting all price changes to a central data base, the core assumption of this price reporting scheme is that the increase in price transparency will lead to a decline in the price level and a reduction in price dispersion. The second study addresses the question whether German gas stations adjust their retail prices asymmetrically in response to crude oil price changes, i.e., whether gas stations react quicker to crude oil price increases than to crude oil price decreases. The third study aims to analyze whether consumers react more strongly to gasoline price increases or to price decreases when considering buying a new vehicle.
Author: Musso, Fabio Publisher: IGI Global ISBN: 1466660759 Category : Business & Economics Languages : en Pages : 625
Book Description
Though based on an economic transition, retailer-consumer relationship is also influenced by non-economic factors and is a context of social interaction. With the emergence of modern merchandising techniques and a rise in large retail companies, consumers have become increasingly vigilant of practice within the retail industry. Handbook of Research on Retailer-Consumer Relationship Development offers a complete and updated overview of various perspectives relating to customer relationship management within the retail industry and stimulates the search for greater integration of these views in further research. Offering different angles to analyze the exchange between the retailer and the consumer, this handbook is a valuable tool for professionals and scholars seeking to upgrade their knowledge, as well as for upper-level students.
Author: Alyssa Moran Publisher: MDPI ISBN: 3036500529 Category : Medical Languages : en Pages : 214
Book Description
In January 2020, the Center for Science in the Public Interest (CSPI), The Food Trust, Johns Hopkins Bloomberg School of Public Health, and Healthy Eating Research (HER) met for a Healthy Retail Research Convention in Washington, D.C. Attendees included food industry representatives, researchers, and nonprofit organizations. The objective of the convention was to develop a national healthy retail research agenda by (1) determining the effectiveness of government policies, corporate practices, and in-store pilots in promoting healthy eating; (2) identifying gaps in the healthy food retail literature and generating questions for future research, with an intentional focus on reducing health disparities and improving equity; (3) highlighting best practices for partnering with retailers and food manufacturers on healthy retail research; (4) facilitating relationships between retailers and researchers to implement and evaluate retail interventions; and (5) identifying existing datasets, ongoing work, and new opportunities for retail–research partnerships.
Author: Cixiu Gao Publisher: ISBN: Category : Advertising Languages : en Pages : 110
Book Description
The dissertation comprises three essays that investigate market performance and seller behavior in the supermarket retail industry. The first essay empirically examines welfare effects of the informative price advertising in the supermarket retail industry, using structural estimation approaches and individual scanner data. The simulation results numerically show that the private promotion intensities are socially excessive. The welfare implications of price advertising are determined by the two opposite effects of price advertising: (1) the informing and therefore welfare-improving effect, and (2) the welfare-harming effect of higher transportation costs incurred by consumers when promotions are used as a means of business stealing. In the second essay, I provide an analytical model for the rationale behind supermarket pricing patterns characterized by long-term high prices and temporary price reductions. The models features oligopoly retailers selling a homogeneous storable good that can be consumed for multiple periods, with consumer heterogeneity with respect to search cost, inventory cost, and store loyalty. In the symmetric Markov-perfect equilibrium (MPE) found, retailers randomize prices, and consumer purchase decisions are characterized by a critical price. The Markov transition of states is non-absorbing: the probability of holding a sale is low at high inventory levels, while at zero inventory retailers compete the hardest. The model is able to generate endogenous temporary price reductions and cyclical inventory variations. In the third essay, I consider forward-looking purchase and pricing behavior. Consumers maximize the expected discounted future utility flows by balancing inventory cost and potential future savings, and a monopolistic retailer maximizes the present expected profit flows by making a pricing decision that accounts for consumer stockpiling behavior. I estimate the model with data from the laundry detergent market using a simulated minimum distance (SMD) estimator. The simulated market evolution implies that, when consumer inventory level is high and therefore the incentive of purchase is small, the retailer smooths its profit flow by lowering prices to induce purchase; when consumer inventory is low, the retailer expects a high demand driven by urgent consumption needs but tends to keep price high in order to preserve future demand.
Author: Jorge Florez Acosta
Author: Jorge Florez Acosta
Author: Yasin Yilmaz
Author: Priscilla Yung Medeiros
Author: An-Shih Liu
Author: José Alonso Pisfil Manchego
Author: Anna Olga Smolnik
Author: Musso, Fabio
Author: Alyssa Moran
Author: Si Chen
Author: Cixiu Gao