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

Peter T L Popkowski Leszczyc*, Ashish Sinha, Anna Sahgal

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

109 Citations (Scopus)

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.

Original languageEnglish
Pages (from-to)85-99
Number of pages15
JournalJournal of Retailing
Volume80
Issue number2
DOIs
Publication statusPublished - 2004
Externally publishedYes

Keywords

  • Grocery store
  • Multi-purpose shopping
  • Pricing and location strategy

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