Product-Type Moderating Effects on Short-Term Demand for Reduced Price Convenience Goods

Meloche, Martin S.; Calantone, Roger J.; Delene, Linda M.

doi:10.1300/j038v04n01_05

Cited by 2 publications

(2 citation statements)

References 12 publications

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“…This behavior is consistent with the "price awareness hypothesis" (Cassady 1962;Holton 1957;Nagle and Novak 1988), which holds that consumers form relatively clear internal reference prices for frequently purchased items, and the reference points are influential in evaluating retail prices and forming store-price images. In support of this hypothesis, field studies have found that sales associated with "stockup" items (i.e., frequently purchased items that can be stockpiled) are particularly responsive to supermarket price changes (Calantone et al 1989;Litvak, Calantone, and Warshaw 1985;Meloche, Calantone, and Delene 1997).…”

Section: Grocery Price Settingmentioning

confidence: 99%

Grocery Price Setting and Quantity Surcharges

Sprott

Manning

Miyazaki

2003

Journal of Marketing

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Quantity surcharges occur when the unit price of a brand's larger package is higher than the unit price of the same brand's smaller package. The authors examine how price-setting practices in the grocery industry help explain the existence of quantity surcharges. Two studies support the authors’ contention that common pricing practices aimed at establishing a favorable store–price image can result in quantity surcharges. First, an experiment shows that consumer demand and the importance price setters place on establishing a low store–price image have an interactive effect on price-setting behavior. Second, an examination of retail sales volume, price, and cost data suggests that such price-setting reactions can result in quantity surcharges when certain asymmetries in demand exist across package sizes. The authors also discuss managerial and public policy implications along with areas for further study.

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Section: Grocery Price Settingmentioning

confidence: 99%

Grocery Price Setting and Quantity Surcharges

Sprott

Manning

Miyazaki

2003

Journal of Marketing

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“…Even though retailer brands no longer are only a low-price alternative to manufacturer brands, the overall price level attractiveness is still a major positioning parameter for retailers. Price promotions are an important tactic used to influence consumer behaviour in grocery retailing both with regard to retailer and manufacturer brands (Andrews, 1995;Meloche et al, 1997). In order to bolster the sales of manufacturer brands and induce consumers to switch stores, manufacturers and retailers often collaborate on price promotions for manufacturer brands.…”

Section: Visibility Of Retailer Brandsmentioning

confidence: 99%

Consumer preferences for retailer brand architectures: results from a conjoint study

Grunert

Esbjerg

Bech‐Larsen

et al. 2006

International Journal of Retail &Amp; Distribution Management

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Purpose -The purpose of this paper is to investigate how three dimensions of retailer brand architecture -share or retailer brands, quality of retailer brands and visibility of retailer brandsaffect consumer intention to shop at stores Design/methodology/approach -A conjoint analysis is conducted with a sample of 599 Danish consumers, which rated intention to shop at hypothetical new shops based on profiles derived from an orthogonal design Findings -Two segments of consumers emerge, one price conscious and one more differentiated. Consumers prefer shops with lower price levels, with dominantly manufacturer brands, with quality of retailer brands at the same level as manufacturer brands, and with good visibility of retailer brands.Research limitations/implications -The results are based on the evaluation of hypothetical stores, and many additional factors affect store choice in the real world. Practical implications -Results suggest that we may be heading towards a polarized retail market, mainly divided between discount concepts and high quality retailer brand concepts. Originality/value -The paper is innovative in isolating the effect of dimensions of retailer brand architecture on consumer store preference.

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Product-Type Moderating Effects on Short-Term Demand for Reduced Price Convenience Goods

Cited by 2 publications

References 12 publications

Grocery Price Setting and Quantity Surcharges

Grocery Price Setting and Quantity Surcharges

Consumer preferences for retailer brand architectures: results from a conjoint study

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