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A Hazard Analysis Of Consumers’ Switching Behaviour In German Food Retailing For Dairy Products

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  • Olearius, Gotz
  • Roosen, Jutta
  • Drescher, Larissa S.

Abstract

German food retailing is characterized by fierce competition among retail chains for consumer shopping. This paper considers the switching behaviour using data of white dairy product purchases. The empirical investigation uses a survival analysis approach, in particular hazard analysis. The results extend the knowledge of shopping behaviour by providing a new set of explaining variables and the importance of the first store, defined as store with the major share of household budget, becomes apparent. On average, households buy dairy products 42 times per year. Thereof 58 % are retail chain switches and in 41 % of all cases the households remain at the previously visited retail chain. Generally a low customer loyalty is visible in this investigation. It is shown that switching behaviour is widely influenced - amongst others - by percentage of private label products, percentage of special offers and price consciousness.

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File URL: http://purl.umn.edu/114516
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Bibliographic Info

Paper provided by German Association of Agricultural Economists (GEWISOLA) in its series 51st Annual Conference, Halle, Germany, September 28-30, 2011 with number 114516.

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Date of creation: 2011
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Handle: RePEc:ags:gewi11:114516

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Related research

Keywords: switching behaviour; store choice; store loyalty; hazard analysis; food retailing; Geschäftsstättenwahl; Geschäftsstättenwechsel; Einkaufsverhalten; Hazard Analyse; Lebensmitteleinzelhandel; Agribusiness; Agricultural and Food Policy; Agricultural Finance; Community/Rural/Urban Development; Food Consumption/Nutrition/Food Safety; Industrial Organization;

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  1. Seetharaman, P B & Chintagunta, Pradeep K, 2003. "The Proportional Hazard Model for Purchase Timing: A Comparison of Alternative Specifications," Journal of Business & Economic Statistics, American Statistical Association, vol. 21(3), pages 368-82, July.
  2. S. Baranzoni & P. Bianchi & L. Lambertini, 2000. "Market Structure," Working Papers 368, Dipartimento Scienze Economiche, Universita' di Bologna.
  3. Mario Cleves & William W. Gould & Roberto G. Gutierrez & Yulia Marchenko, 2010. "An Introduction to Survival Analysis Using Stata," Stata Press books, StataCorp LP, edition 3, number saus3, March.
  4. Gijsbrechts, E. & Campo, K. & Nisol, P., 2005. "Beyond Promotion-Based Store Switching: Antecedents and Consequences of Systematic Multiple-Store Shopping," Discussion Paper 2005-76, Tilburg University, Center for Economic Research.
  5. Oliver E. Williamson, 2002. "The Theory of the Firm as Governance Structure: From Choice to Contract," Journal of Economic Perspectives, American Economic Association, vol. 16(3), pages 171-195, Summer.
  6. P T L Popkowski Leszczyc & H J P Timmermans, 1996. "An unconditional competing risk hazard model of consumer store-choice dynamics," Environment and Planning A, Pion Ltd, London, vol. 28(2), pages 357-368, February.
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