Consumer responses to the depth and minimum claimed savings of “Scratch and Save (SAS)” promotions

This study examines consumers' responses to advertisements employing “Scratch and Save” (SAS) type promotions, which are emerging store‐level promotional tools. Due to SAS promotions' “gambling” characteristics, they offer the possibility of high savings levels, however, they also confront the consumer with uncertainty about the value of the discount at the point of purchase. Particular attention is paid to the depth of the claimed savings, and its effect on regular price believability and consumers' expected savings, as well as perceived value and shopping intentions. The depth of the advertised SAS promotions was observed to not affect consumer believability of the regular price in SAS advertisements. In addition, the disjunction effect is made applicable through showing that the minimum claimed saving information enhances the level of savings expectation. The results also report the positive impact of expected savings on offer value and, in turn, shopping intentions. © 2010 Wiley Periodicals, Inc.     

Exploring Perceived Channel Price,Quality, and Value as Antecedents of Channel Choice and Usage in Multichannel Shopping

This study investigates consumer perceptions of price-quality-value based on shopping channel attributes as antecedents of channel choice and usage in multichannel shopping environments. Findings indicate that channel usage intention is directly influenced by consumer perceptions of channel value and indirectly by consumer perceptions of channel quality and channel price. Consumer perceptions of channel attributes most important to channel usage intention include utilitarian and hedonic value, service and merchandise quality, and monetary and non-monetary price. Managerial implications for retailers suggest a need for strategic management and differentiation of channel attributes to enhance channel value perceptions and increase channel usage intention.     

Prices Paid in Grocery Markets: Searching Across Stores and Brands

Using a large sample of prices paid for 21 homogeneous grocery products available in several brands in each of 16 markets, we simulate the search behavior of a consumer following different shopping strategies using as many as four supermarkets. We find that price search can lead to substantial savings. Brand switching can generate savings at least as large as visiting multiple stores to find the lowest price for a single brand. Buying a private label is usually a better way to save than any amount of search for low prices on national brands. A case study in a small metropolitan area grocery market yields results substantially the same as the simulation results.     

Price Savings to Consumers at Farmers' Markets

This study determined the price savings to be realized by consumers by shopping at 15 certified farmers’ markets in California during the summer and fall of 1979. Substantial savings were found compared to local supermarket prices and the differences appeared in cities of different size and during different seasons of the year.     

Shopping is truly a joy

Some groups of consumers derive great pleasure from shopping; we refer to this as hedonic shopping value. This study contributes to the current literature by establishing construct equivalence in a cross-culture study and testing the relationship of positive and negative price cues with hedonic shopping value. We investigated this concept using confirmatory factor analysis to test equivalence between the two cultures on six dimensions of price and hedonism. Results indicate that the two-group path equality provided acceptable results (chi-square?=?203.92 with 217 df, p?=?0.73; GFI?=?0.94). This indicated that the six dimensions of the price construct and hedonic shopping values are the same for the two countries. Therefore, we proceeded to test the hypotheses. As expected, neither of the two positive dimensions of price was significantly related to hedonic shopping value. Two of the four negative price cues, price mavenism and value consciousness, were positively related to hedonic shopping value.     

Conceptualizing smart shopping with a smartphone: implications of the use of mobile devices for shopping productivity and value

This conceptual paper addresses the implications of the use of mobile devices in an omni-channel retail environment for consumer shopping productivity and shopping value. We reconsider the existing literature on shopping productivity and adopt the perspective of bounded rationality paradigm rather than the classical assumption of customers’ perfect rationality. It enables us to consider both maximizers (those who seek the best outcome) and satisficers (those who stop their information search as soon as an appropriate option is available). After a thorough review of shopping productivity literature, we propose a conceptualization of shopping productivity including four dimensions: time/effort savings, right purchase, money savings, and hedonic benefits from shopping. We then present a conceptual framework relating use of mobile devices in an omni-channel retail environment to consumer shopping productivity and shopping value. The type of goods and consumer tendency to maximize are included in the framework as possible antecedents of the use of mobile devices in an omni-channel retail environment and moderators of the relation between consumer shopping productivity and shopping value.     

Value‐driven Internet shopping: The mental accounting theory perspective

When faced with competition and the ease with which customers can compare prices across sellers, Internet vendors often lower prices in a bid to increase sales. However, recent research reports that even price‐sensitive customers do not always purchase from Internet vendors offering the lowest prices. In contrast, value has been considered a key motivator of customer decision making in economics and marketing. However, little is known about the role and effect of value in Internet shopping. This study examines online customer purchase decision making from the value perspective based on mental accounting theory. This study also identifies monetary (perceived price) and non‐monetary (perceived risk, convenience, and pleasure) determinants of value. This study further explains how the individual determinants affect online purchase decision making directly and indirectly though value perception. The findings of this study offer Internet vendors practical suggestions for increasing online sales. This study, with its results, also helps advance knowledge of electronic commerce. © 2009 Wiley Periodicals, Inc.     

An Investigation of Returns to Different Shopping Strategies

This paper investigates five alternative shopping strategies for acquiring various shopping goods. Both transportation costs and time requirements are examined. The alternative strategies that are examined are based upon random search, minimum travel search, perceived low price, telephone search, and combinations of the above.     

Prepaid Cards at Tax Time and Beyond: Findings and Lessons from the MyAccountCard Pilot

The MyAccountCard provides tax filers with a low‐cost prepaid card account for the electronic delivery of their tax refunds. Under the pilot, 808,099 low‐income individuals were randomly assigned to one of eight treatment groups that differ along three dimensions: (1) no monthly fee vs. $4.95 monthly fee, (2) savings account vs. no savings account, and (3) convenience vs. safety messaging. We find that individuals are price sensitive, the savings account (as designed) was not valuable, and that messaging did not influence behavior. The $4.95 fee (vs. no fee) decreased MyAccountCard take‐up by 42% and the likelihood of depositing a tax refund into the card account by 50%. Individuals with the highest propensity to be unbanked were three times more likely to take up the card and nearly 2.5 times more likely to use it to receive a tax refund as those with the lowest propensity to be unbanked.     

Impacts of Time and Transportation Costs on Food Shopping

This research examines the effects of transportation and time costs on the market basket costs of shopping at more than one supermarket. A 95-item market basket was priced in sixteen supermarkets representing four grocery chains in four geographically separated areas of Columbus, Ohio. The lowest cost market basket for each area was calculated and the costs of transportation and time added to determine their effect upon achieving a lowest cost market basket by shopping several supermarkets. When market basket items only or market basket items plus transportation costs were considered, savings were realized by shopping four supermarkets in an area as opposed to one. The addition of time costs to the total market basket cost caused shopping at two supermarkets to result in the lowest cost market basket in 75% of the observed store combinations.     

MEASUREMENT OF GROCERY PRICES: SOME METHODOLOGICAL CONSIDERATIONS AND EMPIRICAL RESULTS

This paper examines some methodological issues in the design and execution of food price surveys, and presents findings from a recent survey of fifty-eight grocery stores in the Cardiffarea. The methodology discussed includes the design of samples of goods to be surveyed (the ‘shopping basket’), of shops in which grocery prices are to be measured, and derivation of the shop-price matrices to be used in analyses of grocery pricing strategies. The empirical results show, as expected, significantly cheaper prices in multiple and co-operative stores compared with independent and affiliated. No significant difference is found between the latter categories of store. There is limited support for the hypothesis that the larger the store the lower the prices. Prices measured in the Cardiff area are also compared with average ‘shopping basket’prices derived from a national survey carried out concurrently by the Consumers' Association. Finally, the value to the researcher of ‘one-off’ price surveys is assessed.     

Automobile prices and the value of shopping

Consumers shopping for a new car in the U.S.A. or Canada are faced with having to negotiate a ‘good deal’ from the listed ‘sticker’ price. This study investigates the price variations among new car dealerships in 10 major cities. A standardized shopping procedure was used to collect price information based on selected models and options for comparable Chevrolet and Ford automobiles. The findings indicate that consumers clearly benefit from shopping at more than one dealership for a new car.     

EDITOR'S COMMENTS

ABSTRACT

The key to improving pricing methods lies in establishing a clear relationship between the price paid by customers and the value received. A company's understanding of how a decision in its pricing policy will affect the perceptions its potential consumers will have of these prices, is fundamental if it wishes to make sure that its offer is properly perceived. Thus, if companies identify the rules used by purchasers to price their products, they will be successful in getting the objective signal they send via their communication strategies to be perceived in the desired manner. This analysis shows that both monetary and non-monetary costs are considered by consumers when determining the final cost perception associated with the acquisition of a good, and that the understanding of the internal reference price is essential for determining the nominal price effect on the monetary component of total sacrifice.     

Why is Price Dispersion Higher Online than Offline? The Impact of Retailer Type and Shopping Risk on Price Dispersion

When physically similar products, of similar quality, are offered by retailers both online and offline, we often observe that the dispersion in prices of these products online is greater than the price dispersion offline. This observation runs counter to early theories that suggested price dispersion online would be smaller than that offline due to the ease of search and information availability online. This paper investigates and provides an explanation for this puzzling phenomenon by examining the impact of two important drivers of price dispersion: retailer type and consumers’ shopping risk. Retailer type refers to whether a retailer is a pure offline, pure online, or dual channel retailer. Shopping risk is defined as the product of consumers’ perceived risk of shopping and the transaction uncertainty related to shopping at different types of retailers.A game-theoretic approach is adopted to model consumers’ price search and product purchase, as well as price competition within and across retailer types in online and offline markets. Equilibrium pricing strategies are derived for different retailer types competing for different consumer segments with different levels of perceived shopping risk. The impact of retailer type and shopping risk on online versus offline price dispersion are quantified, and conditions when price dispersion is greater online than offline are identified.Results indicate that price dispersion is greater online when the number of pure online retailers is sufficiently large and is increasing in the number of pure online retailers. In addition, a reduction in online shopping risk may actually increase online price dispersion. Results further suggest that even without any online sales, dual channel retailers should maintain their online presence for the purpose of information dissemination, which justifies the importance for pure offline retailer to incorporate webrooming strategies, where consumers can search for prices online but purchase offline.     

Shopping in discount stores: The role of price-related attributions,emotions and value perception

This paper analyzes the impact of price-related attributions, emotions and value perception on the intention to shop at grocery discounters in an integrated framework. Moderating effects of price consciousness are also analyzed. The results show that the proposed model explains almost three quarters of intentions to shop in discount stores. Value perception has the strongest total effect, which is partly mediated by enjoyment, shame and guilt. Attributions influence the shopping intention indirectly via value perception and emotions. The inferior quality attribution has the strongest total effect, followed by the efficiency of the business model attribution. The unfairness to stakeholders and the tricks in price communication attribution mostly influence the shopping intention for less price-conscious customers.     

Private label usage and store loyalty: The moderating impact of shopping value

This study endeavours to develop and analyze a conceptual model that sheds light on the moderating impact of utilitarian and hedonic shopping values in determining the relationship between private label usage and store loyalty. In a test with data collected from 267 consumers, conceptual framework was analyzed by using structural equation modeling. The findings reveal that a negative relationship was observed between private label usage and store loyalty. However, utilitarian shopping value converts this existing negative relationship between private label usage and store loyalty into a strong positive association. This study offers such interesting implications for managers that developing marketing strategies oriented to create utilitarian shopping value during the shopping experience may enable retailers to enhance their store loyalty in a positive way in the long run. Prior research has not approached the private label product phenomenon from a shopping value perspective. Hence, this study attempts to measure the moderating impact of shopping value on the linkage between private label usage and store loyalty for the first time.     

Understanding the intention to use mobile shopping applications and its influence on price sensitivity

This study employs an extended technology acceptance model (TAM) and the theory of diffusion of innovations (DOI) to understand the intention to use mobile commerce applications for shopping purposes. The variables—perceived enjoyment, perceived risk and personal innovativeness—were added to the original model. The price sensitivity criterion was predicted using the variables—perceived risk, personal innovativeness, satisfaction and the intention to use. An online questionnaire was circulated nationwide through email to verified e-commerce users and a sample of 675 respondents was taken for analysis through structural equation modeling approach. Gender, experience and frequency of using mobile shopping applications were used as moderators for all relationships. Findings of this study reveal that personal innovativeness and perceived risk play a major role in deciding the intention to use mobile shopping applications. Users who are highly innovative and with a higher intention to use mobile shopping applications are less sensitive to price. Various managerial implications including applications to differential pricing, improving adoption pace and segmenting consumers to design marketing strategies are discussed.     

The influence of college students' shopping orientations and gender differences on online information searches and purchase behaviours

Using the data collected from a survey of 1277 US college students, this study investigated college students' shopping orientations, and examined the relationships between their shopping orientations and searches for information about and purchases of apparel products online and the differences between male and female students in their shopping orientations, online information searches and purchase experiences. Seven shopping orientation constructs were identified: shopping enjoyment, brand/fashion consciousness, price consciousness, shopping confidence, convenience/time consciousness, in‐home shopping tendency and brand/store loyalty. Results showed that participants' shopping orientations were significantly related to their searches for information about and purchases of apparel items online. In addition, male and female participants showed significant differences in their shopping orientations, online information searches and purchase experiences. This study provided suggestions for apparel e‐tailors to develop effective marketing strategies to reach their target market, for consumer educators and for educators in the retail merchandizing area to prepare their students for future careers.     

Mexican national cross-border shopping: Exploration of retail tourism

This exploration of cross-border shopping by Mexican national shoppers at a regional discount outlet mall studies the: (1) economic impacts of their expenditures on the local and regional economies, and (2) activities they engage in while at the outlet malls and benefits received from shopping there. Spending by cross-border shoppers varied by accommodation type; hotels or motels/friends and family spent approximately $800 (U.S.) on clothing daily and condominiums/day visitors between $400 and $475 (U.S.). The multiplier for cross-border spending at the local level ranged from 1.27 to 1.45. Top cross-border shopper activities were shopping and buying, followed by eating, and visiting.     

Visual cues during shoppers’ journeys: An exploratory paper

The visual cues shoppers view at the point of purchase during the shopping process is vital to product selection and sales. We aimed to identify the intrinsic and extrinsic visual cues or touchpoints customers use to select a product (live plant) in retail stores. Eye-tracking technology (ETT) has enabled market researchers to conduct cost- and time-efficient studies. Few studies have been conducted in a retail setting to pinpoint how shoppers attend to visual cues in situ. Using ETT gave researchers insight into the cognitive processes leading to purchase. We recruited four retail greenhouses in Michigan to collaborate on the study, and researchers invited customers from the store’s email list to participate. Researchers used eye-tracking glasses to record eye movement during a <12-min shopping trip to purchase a $10 plant. We analyzed 150 useful videos to identify attention to marketing and non-marketing cues at the point of purchase (e.g., reading a sign, product interaction, cell phone use). Time spent in specific store areas (e.g., annuals, perennials, shrubs, etc.) was measured. For 67 shoppers who purchased an annual plant, we analyzed which cues and touchpoints influenced the shopping time spent. Results showed that the most frequently accessed cue/touchpoint was intrinsic: product interaction (looking at or touching a plant). Participants read, on average, 6.7 signs with price and 4.5 signs without price. Conversely, only 34% interacted with employees, and 19.4% used their cell phones. Building on this exploratory study, future research could investigate signage elements attracting attention and motivations for employee interaction and cell phone use.