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The effect of multi-purpose shopping on pricing and location strategy for grocery stores

Authors
Publisher
Elsevier Inc.
Publication Date
Volume
80
Issue
2
Identifiers
DOI: 10.1016/j.jretai.2004.04.006
Keywords
  • Multi-Purpose Shopping
  • Pricing And Location Strategy
  • Grocery Store
Disciplines
  • Communication

Abstract

Abstract Though it is a well-accepted fact that consumers indulge in multi-purpose shopping, most previous models of store choice assume that grocery shopping trips are single-purpose trips. This paper provides the first empirical analysis of multi-purpose shopping using data on actual shopping trips. A latent class factor analytic logit model is proposed, which provides a representation of the market structure of grocery store competition, while integrating; multi-purpose shopping, retail pricing format and location strategy. We conclude that incorporating multi-purpose shopping trips provides a better understanding of the competitive market structure, and discuss the managerial implications for the selection of marketing strategies.

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