Please use this identifier to cite or link to this item:
http://hdl.handle.net/10071/11714
Author(s): | Lourenço, C. J. S. Gijsbrechts, E. Paap, R. |
Date: | 2015 |
Title: | The impact of category prices on store price image formation: an empirical analysis |
Volume: | 52 |
Number: | 2 |
Pages: | 200 - 216 |
ISSN: | 0022-2437 |
DOI (Digital Object Identifier): | 10.1509/jmr.11.0536 |
Keywords: | Store price image Price perceptions Product category characteristics Bayesian learning |
Abstract: | The authors empirically explore how consumers update beliefs about a store’s overall expensiveness. They estimate a learning model of store price image (SPI) formation with the impact of actual prices linked to category characteristics on a unique data set combining consumers’ store visit and purchase information with their price perceptions. The results identify characteristics that drive categories’ store price signaling power for different store formats. “Big ticket” categories with a narrow price range strongly shape consumers’ store price beliefs, whereas (volatile) prices of frequently or deeply promoted categories are less influential. At traditional supermarkets, consumers anchor and elaborate on prices of storable categories bought in large quantities and for which quality differentiation is high. For hard discounters, however, SPI is mostly shaped by frequently bought categories with narrow assortments. Notably, categories’ SPI signaling power is not proportional to their share of wallet at either type of chain. Managers can use these results to identify “Lighthouse” categories that signal low prices, yet make up a small portion of store spending, and in which price cuts do not overly hurt revenue. |
Peerreviewed: | yes |
Access type: | Embargoed Access |
Appears in Collections: | BRU-RI - Artigos em revistas científicas internacionais com arbitragem científica |
Files in This Item:
File | Description | Size | Format | |
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SPI_JMR_Lourenco_et_al_2015.pdf Restricted Access | Versão Editora | 3,95 MB | Adobe PDF | View/Open Request a copy |
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