Vista Equipo: Multiproduct retailing and buyer power: The effects of product delisting on consumer shopping behavior

Multiproduct retailing and buyer power: The effects of product delisting on consumer shopping behavior

This paper empirically examines the eects of product delisting on consumer shopping behavior in a context of grocery retailing by large multiproduct supermarket chains. A product is said to be delisted when a supermarket stops supplying it while it continuous being sold by competing stores. We devel...

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Detalles Bibliográficos
Autores Principales:	Florez Acosta, Jorge, Herrera Araujo, Daniel
Formato:	Artículo (Article)
Lenguaje:	Inglés (English)
Publicado:	Le Centre pour la Communication Scientifique Directe 2017
Materias:	Grocery retailing Supermarket chains Buyer power Vertical restraints Product delisting Shopping costs One- and multistop shopping Simulated Maximum likelihood.
Acceso en línea:	https://repository.urosario.edu.co/handle/10336/28447

id	ir-10336-28447
recordtype	dspace
spelling	ir-10336-284472020-08-28T15:48:13Z Multiproduct retailing and buyer power: The effects of product delisting on consumer shopping behavior Comercio minorista multiproducto y poder de compra: los efectos de la exclusión de la lista de productos en el comportamiento de compra del consumidor Florez Acosta, Jorge Herrera Araujo, Daniel Grocery retailing Supermarket chains Buyer power Vertical restraints Product delisting Shopping costs One- and multistop shopping Simulated Maximum likelihood. This paper empirically examines the eects of product delisting on consumer shopping behavior in a context of grocery retailing by large multiproduct supermarket chains. A product is said to be delisted when a supermarket stops supplying it while it continuous being sold by competing stores. We develop a model of demand in which consumers can purchase multiple products in the same period. Consumers have heterogeneous shopping patterns: some find it optimal to concentrate purchases at a single store while others prefer sourcing several separate supermarkets. We account for this heterogeneity by introducing shopping costs, which are transaction costs of dealing with suppliers. Using scanner data on grocery purchases by French households in 2005, we estimate the parameters of the model and retrieve the distribution of shopping costs. We find a total shopping cost per store sourced of 1.79 e on average. When we simulate the delisting of a product by one supermarket, we find that customers’ probability of sourcing that store decreases while the probability of sourcing competing stores increases. The reduction in demand is considerably larger when consumers have strong preferences for the delisted brand. This suggests that retailers may be hurting themselves, and not only manufacturers, when they delist a product. However, when customers have strong preferences for the store such eects are lower, suggesting that inducing store loyalty in customers appears to have an eect on vertical negotiations and, in particular, it enables powerful retailers to impose vertical restraints on manufacturers. 2017-05-04 2020-08-28T15:48:13Z info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion ISSN: 2270-7379 https://repository.urosario.edu.co/handle/10336/28447 eng info:eu-repo/semantics/openAccess application/pdf Le Centre pour la Communication Scientifique Directe HAL Sciences de l'Homme et de la Socie?te?
institution	EdocUR - Universidad del Rosario
collection	DSpace
language	Inglés (English)
topic	Grocery retailing Supermarket chains Buyer power Vertical restraints Product delisting Shopping costs One- and multistop shopping Simulated Maximum likelihood.
spellingShingle	Grocery retailing Supermarket chains Buyer power Vertical restraints Product delisting Shopping costs One- and multistop shopping Simulated Maximum likelihood. Florez Acosta, Jorge Herrera Araujo, Daniel Multiproduct retailing and buyer power: The effects of product delisting on consumer shopping behavior
description	This paper empirically examines the eects of product delisting on consumer shopping behavior in a context of grocery retailing by large multiproduct supermarket chains. A product is said to be delisted when a supermarket stops supplying it while it continuous being sold by competing stores. We develop a model of demand in which consumers can purchase multiple products in the same period. Consumers have heterogeneous shopping patterns: some find it optimal to concentrate purchases at a single store while others prefer sourcing several separate supermarkets. We account for this heterogeneity by introducing shopping costs, which are transaction costs of dealing with suppliers. Using scanner data on grocery purchases by French households in 2005, we estimate the parameters of the model and retrieve the distribution of shopping costs. We find a total shopping cost per store sourced of 1.79 e on average. When we simulate the delisting of a product by one supermarket, we find that customers’ probability of sourcing that store decreases while the probability of sourcing competing stores increases. The reduction in demand is considerably larger when consumers have strong preferences for the delisted brand. This suggests that retailers may be hurting themselves, and not only manufacturers, when they delist a product. However, when customers have strong preferences for the store such eects are lower, suggesting that inducing store loyalty in customers appears to have an eect on vertical negotiations and, in particular, it enables powerful retailers to impose vertical restraints on manufacturers.
format	Artículo (Article)
author	Florez Acosta, Jorge Herrera Araujo, Daniel
author_facet	Florez Acosta, Jorge Herrera Araujo, Daniel
author_sort	Florez Acosta, Jorge
title	Multiproduct retailing and buyer power: The effects of product delisting on consumer shopping behavior
title_short	Multiproduct retailing and buyer power: The effects of product delisting on consumer shopping behavior
title_full	Multiproduct retailing and buyer power: The effects of product delisting on consumer shopping behavior
title_fullStr	Multiproduct retailing and buyer power: The effects of product delisting on consumer shopping behavior
title_full_unstemmed	Multiproduct retailing and buyer power: The effects of product delisting on consumer shopping behavior
title_sort	multiproduct retailing and buyer power: the effects of product delisting on consumer shopping behavior
publisher	Le Centre pour la Communication Scientifique Directe
publishDate	2017
url	https://repository.urosario.edu.co/handle/10336/28447
_version_	1676708416523862016
score	12,131701

Multiproduct retailing and buyer power: The effects of product delisting on consumer shopping behavior

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