We study a newly released data set of scanner prices for food products in a large Swiss online supermarket.
We find that average prices change about every two months, but when we exclude temporary sales,
prices are extremely sticky, changing on average once every three years. Non-sale price behavior is
broadly consistent with menu cost models of sticky prices. When we focus specifically on the behavior
of sale prices, however, we find that the characteristics of price adjustment seems to be substantially
at odds with standard theory.
While customer management has become a top priority for practitioners and academics, little is known about how managers actually make customer management decisions. Our study addresses this gap and uses the adaptive decision maker as well as the fast and frugal heuristics frameworks to gain a better understanding of managerial decision making. Using the process-tracing tool MouselabWEB, we presented sales managers in retail banking with three typical customer management prediction tasks. The results show that a majority of managers in this study are adaptive in their decision making and that some managers use fast and frugal heuristics. Usage of adaptive decision making seems to be mainly driven by low objective task difficulty, the use of fast and frugal heuristics by experience. While adaptive decision making does not impact predictive accuracy, usage of fast and frugal heuristics is associated with proportionally greater use of high predictive quality cues and a significant increase in accuracy. Hence, the existing skepticism concerning heuristics should be questioned.
This research investigates how consumers form subjective judgments of what constitutes "a good grocery assortment". By conducting three exploratory focus groups and a field study, we develop a multi-item scale that reflects consumers' cue utilization processes in forming perceptions of a grocery assortment. Our findings suggest that consumers use only a limited number of informational cues to form perceptions about four higher-level assortment dimensions: (1) the assortment's pricing, (2) its quality, (3) its variety, and (4) its presentation. In line with the attitude theory, we found that consumers integrate these higher-level assortment dimensions into a summary evaluation of the grocery category's attractiveness. Accordingly, we derive the grocery assortment perception (GAP) scale as a second-order construct composed of four first-order factors. Significant positive relationships between the GAP scale and customer satisfaction as well as loyalty intentions provide empirical support for the scale's predictive ability and nomological validity. In the last section of this article, we discuss how the GAP scale will support category managers in their assortment decisions and provide directions for further research.
This research demonstrates that consumers' satisfaction with a customizable bundle depends on (1) whether the choice options for the bundle components are presented simultaneously or sequentially and (2) whether (or not) detailed segregated prices for all choice options are provided in addition to the total price of the bundle configuration.
