Publication Type
Journal Article
Version
acceptedVersion
Publication Date
7-2020
Abstract
Independent store managers-who constitute a substantial portion of the retailing sector-often have limited resources with which to practice the formalized, data-driven pricing processes prescribed in the literature. On that basis, this article addresses how independent convenience store managers arrive at prices and whether their practices are effective. To begin with, 33 interviews with independent convenience store managers identified six common beliefs and ten practices underlying managers' intuitive decision making. Based on point-of-sale survey data from 1,504 customers of two convenience store chains at petrol stations, a second study compared market-oriented managerial beliefs with actual customer price perceptions and buying behaviors. The combined insights from these studies reveal that managers base their pricing decisions on beliefs that are only partially accurate and suggests how managers might benefit by altering their price-setting practices.
Keywords
Pricing, Convenience stores, Intuition, Price perception, Buying behavior, Multi-method research
Discipline
Marketing | Sales and Merchandising
Research Areas
Marketing
Publication
Journal of Business Research
Volume
115
First Page
70
Last Page
84
ISSN
0148-2963
Identifier
10.1016/j.jbusres.2020.04.027
Publisher
Elsevier
Citation
BENOIT, Sabine; KIENZLER, Mario; and KOWALKOWSKI, Christian.
Intuitive pricing by independent store managers: Challenging beliefs and practices. (2020). Journal of Business Research. 115, 70-84.
Available at: https://ink.library.smu.edu.sg/lkcsb_research/7583
Copyright Owner and License
Authors
Creative Commons License
This work is licensed under a Creative Commons Attribution 3.0 License.
Additional URL
https://doi.org/10.1016/j.jbusres.2020.04.027