HKUST Library Institutional Repository Banner

HKUST Institutional Repository >
Marketing >
MARK Working Papers >

Please use this identifier to cite or link to this item: http://hdl.handle.net/1783.1/867
Title: The effect of consumer stockpiling and product perishability on long run grocery shopping behavior
Authors: Krider, Robert E.
Weinberg, Charles B.
Keywords: Consumer stockpiling
Product perishability
Shopping behavior
Shopping patterns
Issue Date: Aug-1996
Series/Report no.: Marketing Working Paper Series ; MKTG 96.079
Abstract: We present a dynamic, normative, theoretical model of consumers as cost minimizing inventory managers, who choose between two stores differentiated on location and price, and who purchase two goods differentiated by perishability. We derive optimal shopping patterns and subsequent market shares. Perishability, a largely unconsidered characteristic of consumer goods, is shown to play an important role in planned shopping behavior. Stockpiling decisions are critical for consumers who are trying to minimize their grocery and shopping costs. Furthermore, the interaction between perishability and price differences offers a novel rationale for planned multistore shopping. The model also results in a convex "increasing returns" relation between price advantage and market share. We present survey results supporting the model predictions.
URI: http://hdl.handle.net/1783.1/867
Appears in Collections:MARK Working Papers

Files in This Item:

File Description SizeFormat
mktg96079.pdf2200KbAdobe PDFView/Open

All items in this Repository are protected by copyright, with all rights reserved.