Reference price effect on consumer choice in online and traditional supermarkets: An application of discrete choice model on home scan data

Biondi, Beatrice ; Cornelsen, Laura (2020) Reference price effect on consumer choice in online and traditional supermarkets: An application of discrete choice model on home scan data. Bologna, IT: Dipartimento di Scienze Statistiche “Paolo Fortunati” - Alma Mater Studiorum Università di Bologna, p. 25. DOI 10.6092/unibo/amsacta/6424. In: Quaderni di Dipartimento. Serie Ricerche (2020). ISSN 1973-9346.
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Abstract

Reference price effect on consumer choices is an acknowledged phenomenon in marketing literature. Several studies have explored this issue using both observational studies and choice experiments. Furthermore, evidence exists on different consumer behaviour when shopping in traditional stores and online. Hence, question arises on whether and how consumers take into account reference price when shopping online. This study aims to analyze and compare consumer behaviour in online stores and traditional stores. A definition of reference price based on past prices is adopted and a discrete choice model is proposed, which includes gain and losses as additional product attributes, with individual-specific coefficients. The model is applied on observed cola purchases (home scan data) in traditional supermarkets and in an online store. Results indicate that loss aversion does play a role in online choices, but the effect is smaller if compared to choices in traditional stores.

Abstract
Document type
Monograph (Working Paper)
Creators
CreatorsAffiliationORCID
Biondi, BeatriceUniversità di Bologna0000-0003-0343-1677
Cornelsen, LauraLondon School of Hygiene and Tropical Medicine0000-0003-3769-8740
Keywords
Discrete Choice Model, Mixed Logit Model, Control Function, Reference Price, Food Choice Behaviour. Modelli Di Scelta Discreta, Modello Mixed Logit, Control Function, Prezzo Di Riferimento, Comportamento Del Consumatore Nelle Scelte Alimentari
Subjects
ISSN
1973-9346
DOI
Deposit date
07 Jul 2020 07:32
Last modified
07 Jul 2020 07:32
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