Winners and losers in a major price war

Name: Winners and losers in a major price war
Author: Heerde, H. J. van, Gijsbrechts, E., Pauwels, Koen Hendrik

İsim	Winners and losers in a major price war
Yazar	Heerde, H. J. van, Gijsbrechts, E., Pauwels, Koen Hendrik
Basım Tarihi:	2008-10
Basım Yeri	- American Marketing Association
Konu	Price war, Multivariate Tobit II model, Store visits, Spending, Price image
Tür	Süreli Yayın
Dil	İngilizce
Dijital	Evet
Yazma	Hayır
Kütüphane:	Özyeğin Üniversitesi
Demirbaş Numarası	0022-2437
Kayıt Numarası	fdd63d03-dddf-4794-94d6-1d2a7e5a35e9
Lokasyon	Business Administration
Tarih	2008-10
Notlar	Due to copyright restrictions, the access to the full text of this article is only available via subscription.
Örnek Metin	Although retail price wars have received much business press and some research attention, it is unclear how they affect consumer purchase behavior. This article studies an unprecedented price war in Dutch grocery retailing that started in fall 2003, initiated by the market leader to halt its sliding market share. The authors investigate the short- and longterm effects of the price war on store visits, on spending, and on the sensitivity of these decisions to weekly prices and price image. They use a unique data set with consumer hand-scan and perceptual data for a national panel of 1821 households, covering two years before and two years after the price war started. Although the price war initially entailed more shopping around and increased spending, spending per visit ultimately dropped because consumers redistributed their purchases across stores. The price war made consumers more sensitive to weekly prices and price image, which helped both the chain that showed an improvement in price image (the price war initiator) and the chains that already had a favorable price image (hard discounters). The price war initiator managed to halt the slide in its market share, and its stock price improved. The losers were the rival mid-level and high-end chains. Unlike the initiator, their price image did not improve, and they suffered from increased price image sensitivity. The authors provide managerial implications for firms that are (or about to be) involved in a price war.
DOI	10.1509/jmkr.45.5.499
Cilt	45

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Winners and losers in a major price war

Yazar Heerde, H. J. van, Gijsbrechts, E., Pauwels, Koen Hendrik

Basım Tarihi 2008-10

Basım Yeri - American Marketing Association

Konu Price war, Multivariate Tobit II model, Store visits, Spending, Price image

Tür Süreli Yayın

Dil İngilizce

Dijital Evet

Yazma Hayır

Kütüphane Özyeğin Üniversitesi

Demirbaş Numarası 0022-2437

Kayıt Numarası fdd63d03-dddf-4794-94d6-1d2a7e5a35e9

Lokasyon Business Administration

Tarih 2008-10

Notlar Due to copyright restrictions, the access to the full text of this article is only available via subscription.

Örnek Metin Although retail price wars have received much business press and some research attention, it is unclear how they affect consumer purchase behavior. This article studies an unprecedented price war in Dutch grocery retailing that started in fall 2003, initiated by the market leader to halt its sliding market share. The authors investigate the short- and longterm effects of the price war on store visits, on spending, and on the sensitivity of these decisions to weekly prices and price image. They use a unique data set with consumer hand-scan and perceptual data for a national panel of 1821 households, covering two years before and two years after the price war started. Although the price war initially entailed more shopping around and increased spending, spending per visit ultimately dropped because consumers redistributed their purchases across stores. The price war made consumers more sensitive to weekly prices and price image, which helped both the chain that showed an improvement in price image (the price war initiator) and the chains that already had a favorable price image (hard discounters). The price war initiator managed to halt the slide in its market share, and its stock price improved. The losers were the rival mid-level and high-end chains. Unlike the initiator, their price image did not improve, and they suffered from increased price image sensitivity. The authors provide managerial implications for firms that are (or about to be) involved in a price war.

DOI 10.1509/jmkr.45.5.499

Cilt 45