Segmented switchers and retailer pricing strategies

Empirical studies reveal a surprisingly wide variety of price promotion strategies among retailers, even among Internet sellers of undifferentiated homogenous goods such as books and music CD’s. Several empirical findings remain puzzling, particularly that within the same market some small retailers decide to deeply discount, while other small retailers forgo the price-sensitive switchers and price high to play their niche. We present theoretical and empirical analyses that address these varied pricing strategies. Our model of three asymmetric firms shows that under multiple switcher segments, where different switchers compare prices at different retailers, firm-specific loyalty is not sufficient to explain the variety of retailer pricing strategies. We demonstrate that a retailer’s pricing strategy is driven by the ratio of the size of switcher segments for which the retailer competes to its loyal segment size. The relative switcher-to-loyal ratios among retailers explain when a firm is more or less inclined to discount deeply or frequently. We thereby identify when a small firm finds it optimal to play the niche and price high, despite having few loyals, or to discount and go for the switchers. Our analysis reveals several interesting findings, such as a small firm that benefits from strategically limiting its access to switchers. The results of two empirical studies confirm our model’s predictions for varied retailer pricing strategies in the context of Internet booksellers

Point of Sales Promotions and Buying Stimulation in Retail Stores

This paper analyzes drivers of compulsive buying behavior induced by store based promotion through empirical investigation in Mexico. The buying behavior in reference to point of sales promotions offered by retailing firms and determinants of sensitivity towards stimulating shopping arousal and satisfaction among customer in building store loyalty have been discussed in the paper. This study also builds arguments around convergence of attractiveness of point of sales promotions and effectiveness of customer services as a tool for gaining competitive advantage in the retail business environment. The results indicate that point of sales promotion programs have become the principal tool of retailing in Mexico to acquire new customers and retain the loyal customers. It is also found during the study that loyal customers are attracted to the store brands during the promotional offers while new shoppers are price sensitive and are attracted by the in-store ambience of sales promotions and volume discounts.Sales promotion, shopping arousal, store loyalty, buying behavior, retailing, customer relations

RETAIL MARKETING INSTRUMENTS – AN ANALYTIC APPROACH

Each of the classical marketing mix policies get specific meanings and characteristics in retail. Some of the authors suggest their accurate transposition in retail, meanwhile others highlight those elements derivate from the service marketing mix. There is also the tendency of outlining the in-store-management, the location or the customer “binding” policy as independent marketing mix policies in retail.retail marketing, marketing mix, assortment, price, service, communication, location, in-store-management, customer loyalty

Design, effectiveness and role of visual merchandising in creating customer appeal

This study aims to find out how and to what extent outlets incorporate visual merchandising, that appeals to the customers and lead to a potential purchase. The survey method was followed to conduct the study and data were collected through sampling techniques from identified respondents, who were selected through convenient and judgment methods. The major findings in the light of the objectives of this project were that most of the stores need to have attractive window displays, proper stores layout, appealing visual merchandising themes to attract present and potential customers into the store. It is also understood that the most important aspect of visual merchandising is to have proper lighting and attractive display themes. The output of the study unfolds that the most of the merchandiser’s main focus is to display the newest trend and best moving items into the display windows and visual merchandising was found to be very helpful for converting potential customers into real customers.Visual merchandising, in-store display, visual sensor appeal, silent communication tool, store layout

Shopping For Privacy: How Technology in Brick-and-Mortar Retail Stores Poses Privacy Risks for Shoppers

As technology continues to rapidly advance, the American legal system has failed to protect individual shoppers from the technology implemented into retail stores, which poses significant privacy risks but does not violate the law. In particular, I examine the technologies implemented into many brick-and-mortar stores today, many of which the average everyday shopper has no idea exists. This Article criticizes these technologies, suggesting that many, if not all of them, are questionable in their legality taking advantage of their status in a legal gray zone. Because the American judicial system cannot adequately protect the individual shopper from these questionable privacy practices, I call upon the Federal Trade Commission, the de facto privacy regulator in the United States, to increase its policing of physical retail stores to protect the shopper from any further harm

Price discrimination in-store, in mobility and in real-time

This dissertation focuses on the concepts of Mobility, Real-time Marketing and Price Discrimination, analyzing why it makes sense to study them together. Boosted by the success of personalized offers in the e-commerce, the goal of this research is to understand if the market is prepared for real-time price discrimination by using smartphones. A survey was conducted in order to gain some empirical knowledge, and the collected data was characterized regarding the research question and by using some descriptive statistics and cross tabulations. The results showed that in the observed sample, customers are willing to use the mobile channel through a product barcode scanning process in order to get a discount. These findings contribute with further insights into understanding how the mobile channel can be used by retail stores in order to bring additional sales for companies by reaching the most price sensitive customers

Impact of shopping emotion towards impulse buying in e-commerce platform

This empirical research aims to examine the influence of discount programs, website quality, and online reviews directly and indirectly on the impact of shopping emotion towards impulse buying on the e-commerce website. Data were purposively obtained from a total population of 130 respondents and analyzed using a Structural Equation Model (SEM). The results showed a significant positive effect on discount Programs and Website Quality on impulse buying with shopping emotions as a mediating variable. Besides, the result also showed an insignificant impact on online reviews