Ítem
Solo Metadatos
Multiproduct retailing and consumer shopping behavior: The role of shopping costs
Título de la revista
Autores
Florez-Acosta, Jorge
Herrera-Araujo, Daniel
Fecha
2020
Directores
ISSN de la revista
Título del volumen
Editor
Elsevier Inc.
Citations
Métricas alternativas
Resumen
Abstract
We empirically examine the role of shopping costs in consumer shopping behavior in a context of competing differentiated supermarkets that supply similar product lines. We develop and estimate a model of demand in which consumers can purchase multiple products from multiple stores in the same week, and incur transaction costs of dealing with supermarkets. We show that a similar model without shopping costs predicts a larger proportion of multistop shoppers and overestimates own-price elasticities and product markups. Further, we use our model along with a model of competition between supermarkets to study two practices that are commonly used by supermarkets: product delisting and loss-leader pricing. We show that the presence of shopping costs makes product delisting less profitable whereas it makes loss-leader pricing more profitable compared to a context in which consumers do not incur shopping costs. © 2019 Elsevier B.V.
Palabras clave
Keywords
Consumer behavior , Cost benefit analysis , Profitability , Retail stores , Consumer shopping , Market Power , Multiple products , Multistop shopping , Own-price elasticities , Product delisting , Similar models , Transaction cost , Costs , Loss-leader pricing , Market power , Multistop shopping , Product delisting , Shopping costs , Supermarket competition
