Beyond Promotion-Based Store Switching: Antecedents and Consequences of Systematic Multiple-Store Shopping

KUL Working Paper No. MO 0613

42 Pages Posted: 11 Jul 2005  

Els Gijsbrechts

Tilburg University - Center for Economic Research (CentER)

Katia Campo

KU Leuven - Faculty of Business and Economics (FEB)

Patricia Nisol

University of Antwerp - Faculty of Applied Economics

Date Written: July 2007

Abstract

In this paper, we demonstrate both theoretically and empirically that single-purpose multiple store shopping is not only driven by opportunistic, promotion-based motivations, but may also result from a longer term planning process based on stable store characteristics. We find that consumers may systematically visit multiple stores to take advantage of two types of store complementarity. In the case of 'fixed cost complementarity', consumers alternate visits to high and low fixed cost stores to balance transportation and holding costs against acquisition costs. 'Category preference complementarity' occurs when different stores offer the best value for different product categories, and may induce consumers to visit these stores together on combined shopping trips. In both cases, multiple store shopping leads to a shift from share-of-customers to share-of-wallet retail competition.

Keywords: Multiple store shopping, Spatial competition, Store choice, Planning, Processes, Characteristics, Complementarity, Cost; Costs, Category, Preference, Value, Product, Shopping trip, Competition, Choice, Patterns

JEL Classification: M31

Suggested Citation

Gijsbrechts, Els and Campo, Katia and Nisol, Patricia, Beyond Promotion-Based Store Switching: Antecedents and Consequences of Systematic Multiple-Store Shopping (July 2007). KUL Working Paper No. MO 0613. Available at SSRN: https://ssrn.com/abstract=756344 or http://dx.doi.org/10.2139/ssrn.756344

Els Gijsbrechts (Contact Author)

Tilburg University - Center for Economic Research (CentER) ( email )

P.O. Box 90153
Tilburg, 5000 LE
Netherlands

Katia Campo

KU Leuven - Faculty of Business and Economics (FEB) ( email )

Naamsestraat 69
Leuven, B-3000
Belgium

Patricia Nisol

University of Antwerp - Faculty of Applied Economics ( email )

Prinsstraat 13
Antwerp, B-2000
Belgium

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