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Beyond Promotion-Based Store Switching: Antecedents and Consequences of Systematic Multiple-Store Shopping

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Author Info

  • Gijsbrechts, E.
  • Campo, K.
  • Nisol, P.

    (Tilburg University, Center for Economic Research)

Abstract

In this paper, we demonstrate that single-purpose multiple store shopping is not only driven by opportunistic, promotion-based motivations, but may also be part of a longer term shopping planning process based on stable store characteristics.Starting from a utility-maximizing shopping behavior model, we find that consumers systematically visit multiple stores to take advantage of two types of store complementarity.With 'fixed cost complementarity', consumers alternate visits to highly preferred but high fixed cost-stores, with in-between trips to less appealing, low fixed cost- stores.This compromise strategy allows them to balance transaction and holding costs against acquisition costs. 'Category preference complementarity' occurs when different stores offer the 'best value' for different product categories.It is found to be an important driver of multiple store shopping, and a necessary condition for combined (chained) shopping trips.Tying these multiple store shopping motivations to characteristics of different grocery store formats leads to interesting new insights into the nature of retail competition and the strategic role of more quality-oriented retail marketing mix instruments.

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Bibliographic Info

Paper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 2005-76.

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Date of creation: 2005
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Handle: RePEc:dgr:kubcen:200576

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Web page: http://center.uvt.nl

Related research

Keywords: Store selection; consumer shopping behavior; utility maximization; multiple store patronage;

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References

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  1. Shuba Srinivasan & Koen Pauwels & Dominique M. Hanssens & Marnik G. Dekimpe, 2004. "Do Promotions Benefit Manufacturers, Retailers, or Both?," Management Science, INFORMS, vol. 50(5), pages 617-629, May.
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Cited by:
  1. Cleeren, Kathleen & Dekimpe, Marnik G. & Gielens, Katrijn & Verboven, Frank, 2008. "Intra- and Inter-Format Competition Among Discounters and Supermarkets," CEPR Discussion Papers 6964, C.E.P.R. Discussion Papers.
  2. Hoffman, Angela & Senkler, Heike, 2011. "Interformat price competition of multi-product retailers: Evidence for German grocery retailing," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114533, European Association of Agricultural Economists.
  3. Olearius, Gotz & Roosen, Jutta & Drescher, Larissa S., 2011. "A Hazard Analysis Of Consumers’ Switching Behaviour In German Food Retailing For Dairy Products," 51st Annual Conference, Halle, Germany, September 28-30, 2011 114516, German Association of Agricultural Economists (GEWISOLA).

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