Abstract
This paper examines the determinants of price adjustment decisions by supermarkets to increase or decrease prices for 11 different food categories and evaluates the characteristics of these firms that influence these decisions. We use a unique dataset to analyze firm variables and industry variables and their impact on price adjustment in supermarket stores. The study contributes to the price adjustment literature by identifying determinants of price behavior by stores and product category. We find that the rationale for increasing prices differs from that for decreasing prices, retailers make different adjustment decisions based on product category, and market-level controls have little impact.
| Original language | English (US) |
|---|---|
| Pages (from-to) | 37-52 |
| Number of pages | 16 |
| Journal | Managerial and Decision Economics |
| Volume | 38 |
| Issue number | 1 |
| DOIs | |
| State | Published - Jan 1 2017 |
Bibliographical note
Publisher Copyright:Copyright © 2015 John Wiley & Sons, Ltd.