Skip to main content
Log in

Actual and perceived consumer vigilance in the retail grocery industry

  • Published:
Marketing Letters Aims and scope Submit manuscript

Abstract

Economic theory suggests that price competition is in part driven by actively searching buyers. An exploratory study in a major midwestern grocery market revealed that executives responsible for pricing decisions overestimate the size of the price-driven shopping segment. The reasons behind this perception and its impact on pricing decisions are examined.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

References

  • Blattberg, Robert C., Gary D. Eppen, and Joshua Lieberman. (1981). “A Theoretical and Empirical Evaluation of Price Deals for Consumer Nondurables,” Journal of Marketing 45 (Winter), 116–129.

    Google Scholar 

  • Boynton, Robert D., Brian F. Blake, and Joe N. Uhl. (1983). “Retail Price Reporting Effects in Local Food Markets,” American Journal of Agricultural Economics (February), 20–29.

  • Carlson, John A., and Robert J. Gieseke. (1983). “Price Search in a Product Market,” Journal of Consumer Research 9 (March), 357–365.

    Google Scholar 

  • Cassady, Ralph. (1960). Competition and Price Making in Food Retailing. New York: Ronald Press Company.

    Google Scholar 

  • Dickson, Peter R., and Alan G. Sawyer. (1990). “Point of Purchase Behavior and Price Perceptions of Supermarket Shoppers,” Journal of Marketing.

  • Dickson, Peter R., and Joel E. Urbany. (1990). “The Effects of Consumer Search and Competitive Price Cutting Momentum on Pricing Behavior,” unpublished working paper, Ohio State University.

  • Food Marketing Institute. (1986). Trends: Consumer Attitudes and the Supermarket. Washington, D.C.: Food Marketing Institute.

    Google Scholar 

  • Gabor, Andre, and Clive Granger. (1970). “Price Consciousness of Consumers.” In Bernard, Taylor and Gordon Wills (eds.), Pricing Strategy. Princeton, NJ: Brandon Systems Press, Inc.

    Google Scholar 

  • Hoch, Stephen J. (1988). “Who Do We Know: Predicting the Interests and Opinions of the American Consumer,” Journal of Consumer Research 15 (December), 315–324.

    Google Scholar 

  • Levitt, Theodore. (1980). “Differentiation-of Anything,” Harvard Business Review (January–February).

  • Marks, Harlan. (1987). “A Price-Less Plan,” Progressive Grocer (May), 144–150.

  • Monroe, Kent B. (1990). Pricing: Making Profitable Decisions. New York: McGraw-Hill, 2nd edition.

    Google Scholar 

  • O'Conner, Michael J. (1986). “What Is the Logic of a Price War?” International Trends in Retailing 3 (Spring), 15–21.

    Google Scholar 

  • Parasuraman, A., Valarie A. Zeithaml, and Leonard Berry. (1985). “A Conceptual Model of Service Quality and Its Implications for Future Research,” Journal of Marketing 49 (Fall), 41–50.

    Google Scholar 

  • Progressive Grocer. (1989). “Fifty-Sixth Annual Report,” (April).

  • Progressive Grocer. (1988). “Fifty-Fifth Annual Report,” (April).

  • Progressive Grocer. (1987). “Fifty-Fourth Annual Report,” (April).

  • Progressive Grocer. (1986). “Fifty-Third Annual Report,” (April).

  • Salop, Steven, and Joseph Stiglitz. (1977). “Bargains and Ripoffs: A Model of Monopolistically Competitive Price Dispersion,” The Review of Economic Studies 44 (3), 493–510.

    Google Scholar 

  • Schwartz, Alan, and Louis L. Wilde. (1979). “Intervening in Markets on the Basis of Imperfect Information: A Legal and Economic Analysis,” University of Pennsylvania Law Review 127, 630–682.

    Google Scholar 

  • Stigler, George J. (1961). “The Economics of Information,” Journal of Political Economy 69 (June), 213–225.

    Google Scholar 

  • Supermarket News. (1983a). “Indianapolis Remains in Grip of a Price War,” (September 19), 23.

  • Supermarket News. (1983b). “Indianapolis Firms Continue Waging Fierce Price Battles,” (October 17), 6.

  • Supermarket News. (1983c). “All Agree in Thinking Situation is Desparate,” (November 21), 1.

  • Tellis, Gerard J., and Birger Wernerfelt. (1987). “Competitive Price and Quality Under Asymmetric Information,” Marketing Science 6 (Summer), 240–253.

    Google Scholar 

  • Walters, Rockney G., and Scott MacKenzie. (1988). “A Structural Equations Analysis of the Impact of Price Promotions on Store Performance,” Journal of Marketing Research 25 (February), 51–63.

    Google Scholar 

  • Wilde, Louis L., and Alan Schwartz. (1979). “Equilibrium Comparison Shopping,” The Review of Economic Studies 46 (3), 543–554.

    Google Scholar 

  • Zeithaml, Valarie A. (1988). “Consumer Perceptions of Price, Quality, and Value: A Means-End Model and Synthesis of Evidence,” Journal of Marketing 52 (July), 2–22.

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Rights and permissions

Reprints and permissions

About this article

Cite this article

Urbany, J.E., Dickson, P.R. & Key, R. Actual and perceived consumer vigilance in the retail grocery industry. Market Lett 2, 15–25 (1991). https://doi.org/10.1007/BF00435192

Download citation

  • Issue Date:

  • DOI: https://doi.org/10.1007/BF00435192

Key words

Navigation