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Retail Price Reporting Effects in Local Food Markets

Author

Listed:
  • Robert D. Boynton
  • Brian F. Blake
  • Joe N. Uhl

Abstract

An experiment involving weekly newspaper publication of comparative food store prices in four U.S. cities stimulated competitive pricing behavior without reinforcement from consumer patronage shifts. Costs of a fixed, 100-item market basket fell, relative to control markets, an average of two percent during publication and recovered with termination of the reports. Responses varied among cities, stores, and product categories. Price dispersion was not affected. While consumers judged the information to be useful and accurate, it did not induce changes in their perceptions or shopping patterns. Grocer responses were attributed to the publicity value of the price reports.

Suggested Citation

  • Robert D. Boynton & Brian F. Blake & Joe N. Uhl, 1983. "Retail Price Reporting Effects in Local Food Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 65(1), pages 20-29.
    • Handle: RePEc:oup:ajagec:v:65:y:1983:i:1:p:20-29.
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    File URL: http://hdl.handle.net/10.2307/1240333
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    Citations

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    Cited by:

    1. Binkley, James K. & Bejnarowicz, John, 1999. "Consumer Price Awareness In Food Shopping: The Case Of Quantity Surcharges," 1999 Annual meeting, August 8-11, Nashville, TN 21512, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. J. S. Taylor & John Spriggs & S. N. Kulshreshtha & E. Knopf, 1989. "Comparative price information and price dispersion in the Saskatchewan market for farm inputs," Agribusiness, John Wiley & Sons, Ltd., vol. 5(4), pages 335-345.
    3. Armstrong, J. Scott & Collopy, Fred, 1996. "Competitor Orientation: Effects of Objectives and Information on Managerial Decisions and Profitability," MPRA Paper 81676, University Library of Munich, Germany.

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