Please use this identifier to cite or link to this item: http://scholarbank.nus.edu.sg/handle/10635/42883
Title: Buyer shopping costs and retail pricing: An indirect empirical test
Authors: Lee, S.-Y.T. 
Png, I.P.L. 
Keywords: Advertising
Pricing
Shopping costs
Issue Date: 2004
Source: Lee, S.-Y.T.,Png, I.P.L. (2004). Buyer shopping costs and retail pricing: An indirect empirical test. Review of Marketing Science 2 : 155-176. ScholarBank@NUS Repository.
Abstract: Suppose that consumers incur fixed shopping costs and choose stores according to advertised discounts. Then, the extent to which a store will discount advertised items should increase with the profit from other regularly-priced items. Bookstores customarily advertise discounts on bestsellers. Among conventional bookstores, we found that the bestseller discount systematically increased with the store area, selection of titles, and presence of other product categories. One standard deviation increase in store area was associated with a 3.7 (± 1.8) higher bestseller percentage discount. Among online stores, we found that the bestseller discount systematically increased with the selection of titles and number of product categories. One standard deviation increase in selection was associated with a 9.5 (± 2.2) higher bestseller percentage discount. These results indirectly confirm that booksellers discount bestsellers to attract consumers, and that consumers bear significant fixed shopping costs.
Source Title: Review of Marketing Science
URI: http://scholarbank.nus.edu.sg/handle/10635/42883
ISSN: 15465616
Appears in Collections:Staff Publications

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