The Effect of Multi-Purpose Shopping on Pricing and Location Strategy for Grocery Stores
- Topics:
- Grocery,
- Pricing Strategy
- Tags:
- Food & Beverage,
- Grocery,
- Manufacturing,
- Marketing,
- Marketing Research,
- Pricing,
- Pricing Strategy,
- Reed Elsevier Inc.,
- Strategy
- Source:
- Reed Elsevier
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Overview: Though it is a well-accepted fact that consumers indulge in multi-purpose shopping, most previous models of store choice assume that grocery shopping trips are single-purpose trips. This paper provides the first empirical analysis of multi-purpose shopping using data on actual shopping trips. A latent class factor analytic logit model is proposed, which provides a representation of the market structure of grocery store competition, while integrating; multi-purpose shopping, retail pricing format and location strategy. The paper concludes that incorporating multi-purpose shopping trips provides a better understanding of the competitive market structure, and discusses the managerial implications for the selection of marketing strategies.
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Format: PDF | Size: 216KB | Date: Jun 2004 | Pages: 15
