Abstract
In this paper, we develop a model of consumer patronage decisions to evaluate the effect of store price images vis-a-vis that of objective basket prices. Within this dual retail price model, the two types of price information are linked through the dynamic formation of price images over time, itself based on actual prices. We show that not accounting for the effect of (dynamic) price perceptions may seriously bias store traffic estimation in response to price changes. Finally, we explore which demographic and shopping characteristics of consumers may explain or shed light on differences in sensitivity to different price information.
| Original language | English |
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| Publication status | In preparation - 2019 |