Marketing Papers

Document Type

Journal Article

Date of this Version

4-2004

Publication Source

The Journal of Business

Volume

77

Issue

S2

Start Page

S25

Last Page

S60

DOI

10.1086/381518

Abstract

We present an empirical study of household shop- ping and packaged goods spending across retail for- mats—grocery stores, mass merchandisers, and drug stores. Our study assesses competition be- tween formats and ex- plores how retailers’ as- sortment, pricing, and promotional policies, as well as household demo- graphics, affect shopping behavior. We find that consumer expenditures respond more to varying levels of assortment (in particular at grocery stores) and promotion than price. We also find that households that shop more at mass merchan- disers also shop more in all other formats, sug- gesting that visits to mass merchandisers do not substitute for trips to the grocery store.

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Date Posted: 27 November 2017

This document has been peer reviewed.