Price War: What Is It Good for? - Store Incidence and Basket Size Response to the Price War in Dutch Grocery Retailing

Topics:
Competitive Pricing,
Pricing Strategy
Tags:
Basket,
Food & Beverage,
Human Resources,
Manufacturing,
Performance Management,
Retail,
Trustees Of Dartmouth College,
Workforce Management
Source:
Trustees of Dartmouth College

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Overview: While retail price wars have received much business press and some research attention, it is unclear how they affect the major components of retailer performance: store incidence and basket size. Based on consumer hand scan and perceptual data, one analyzes the impact of a recent price war with a multivariate Tobit II model. One finds that increased consumer price sensitivity offsets the improved price image for the pioneer, while it benefits competitors with high value for- money.

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Format: PDF | Size: 282KB | Date: Oct 2005 | Pages: 43

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