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Is The Treasure Hunt Strategy Working For Costco?

Author

Listed:
  • Ramon Corona
  • Nelson Altamirano

Abstract

The purpose of this paper was to find out if Costco’s treasure hunt strategy was effectively attracting customers and increasing spending per visit. It was an exploratory research to provide insights in the perceptions of Costco customers in reference to new, seasonal, and premium products (treasure hunt) in their shopping habits, in comparison with purchasing regular items. An initial survey was developed for this purpose and sent to a sample of 150 individuals with a 55.33% response rate (83 completed the survey), and a second survey was sent to the same sample to find out additional complementary information, this time with a 29% response rate. The results showed that only 4% of the sample population (that shop every three months at Costco) was predominantly attracted to these seasonal and premium items; however, all respondents agreed that these items are an important complement to the regular purchases, and that they increase their spending per visit. On the other hand, results also confirmed that these items do not necessarily increase the frequency of visits for Costco members of this group.

Suggested Citation

  • Ramon Corona & Nelson Altamirano, 2010. "Is The Treasure Hunt Strategy Working For Costco?," International Journal of Management and Marketing Research, The Institute for Business and Finance Research, vol. 3(3), pages 83-93.
    • Handle: RePEc:ibf:ijmmre:v:3:y:2010:i:3:p:83-93
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    References listed on IDEAS

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    1. Judith A. Chevalier & Fiona M. Scott Morton, 2008. "State Casket Sales Restrictions: A Pointless Undertaking?," Journal of Law and Economics, University of Chicago Press, vol. 51(1), pages 1-23, February.
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    Cited by:

    1. Ramon Corona, 2014. "A Comparative Analysis Of Major Us Retailers Based On Enterprise Marketing Efficiency," Global Journal of Business Research, The Institute for Business and Finance Research, vol. 8(4), pages 25-39.

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    More about this item

    Keywords

    Costco; treasure hunt; merchandising strategy; marketing; consumer behavior; shopping habits; strategy;
    All these keywords.

    JEL classification:

    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing

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