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Details and big pictures consumer use of actual prices and price images when choosing a store

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Detalhes bibliográficos
Resumo:In this paper, we develop a model of consumer patronage decisions to evaluate the effect of store price images vis-à-vis that of objective basket prices. Within this dual retail price model, the two types of price information are linked through the dynamic formation of price images over time, itself based on actual prices. We show that not accounting for the effect of (dynamic) price perceptions may seriously bias store traffic estimation in response to price changes. Finally, we explore which demographic and shopping characteristics of consumers may explain or shed light on differences in sensitivity to different price information.
Autores principais:Lourenço, Carlos
Outros Autores:Gijsbrechts, Els
Assunto:Retail Store Choice Store Price Image Consumer Learning
Ano:2022
País:Portugal
Tipo de documento:working paper
Tipo de acesso:acesso aberto
Instituição associada:Universidade de Lisboa
Idioma:inglês
Origem:Repositório da Universidade de Lisboa
Descrição
Resumo:In this paper, we develop a model of consumer patronage decisions to evaluate the effect of store price images vis-à-vis that of objective basket prices. Within this dual retail price model, the two types of price information are linked through the dynamic formation of price images over time, itself based on actual prices. We show that not accounting for the effect of (dynamic) price perceptions may seriously bias store traffic estimation in response to price changes. Finally, we explore which demographic and shopping characteristics of consumers may explain or shed light on differences in sensitivity to different price information.