[go: up one dir, main page]
More Web Proxy on the site http://driver.im/
IDEAS home Printed from https://ideas.repec.org/a/ags/ijofsd/254120.html
   My bibliography  Save this article

How German Online Retailers Price Foods: An Empirical Analysis for Chocolate Products

Author

Listed:
  • Fedoseeva, Svetlana
  • Grein, Theresa
  • Herrmann, Roland
Abstract
Despite the increasing importance of online grocery retailing, little is known about price dispersion across online providers, the relation between online and offline prices as well as the frequency of price adjustments. We employ means of descriptive and inductive statistics as well as panel econometrics to address these issues for German online food retailers. Daily online prices for twelve chocolate products charged by eight pure online and multichannel retailers and collected over three months are investigated. Information economics suggests that a maturing online market will call forth more price homogeneity online due to lower search costs by consumers as well as more flexible prices due to lower costs of price adjustments by retailers. Our results suggest, however, that neither homogenous prices nor frequent price adjustments do occur on the German online chocolate market.

Suggested Citation

  • Fedoseeva, Svetlana & Grein, Theresa & Herrmann, Roland, 2017. "How German Online Retailers Price Foods: An Empirical Analysis for Chocolate Products," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 8(1), pages 1-13, January.
    • Handle: RePEc:ags:ijofsd:254120
    DOI: 10.22004/ag.econ.254120
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/254120/files/03-627-2110-1-PB.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.254120?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. repec:bla:jindec:v:50:y:2002:i:3:p:351-67 is not listed on IDEAS
    2. Karen Clay & Ramayya Krishnan & Eric Wolff & Danny Fernandes, 2002. "Retail Strategies on the Web: Price and Non–price Competition in the Online Book Industry," Journal of Industrial Economics, Wiley Blackwell, vol. 50(3), pages 351-367, September.
    3. Baylis, Kathy & Perloff, Jeffrey M., 2001. "Price Dispersion on the Internet: Good Firms and Bad Firms," Institute for Research on Labor and Employment, Working Paper Series qt2t0770rn, Institute of Industrial Relations, UC Berkeley.
    4. Aviv Nevo, 2011. "Empirical Models of Consumer Behavior," Annual Review of Economics, Annual Reviews, vol. 3(1), pages 51-75, September.
    5. Anania, Giovanni & Nisticò, Rosanna, 2014. "Price dispersion and seller heterogeneity in retail food markets," Food Policy, Elsevier, vol. 44(C), pages 190-201.
    6. Herrmann Roland & Moeser Anke & Weber Sascha Alexander, 2005. "Price Rigidity in the German Grocery-Retailing Sector: Scanner-Data Evidence on Magnitude and Causes," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 3(1), pages 1-37, February.
    7. Martin Berka & Michael B. Devereux & Thomas Rudolph, 2011. "Price setting in a leading Swiss online supermarket," CAMA Working Papers 2011-19, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
    8. J. Yannis Bakos, 1997. "Reducing Buyer Search Costs: Implications for Electronic Marketplaces," Management Science, INFORMS, vol. 43(12), pages 1676-1692, December.
    9. Baylis, Kathy & Perloff, Jeffrey M., 2001. "Price Dispersion on the Internet: Good Firms and Bad Firms," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt2t0770rn, Department of Agricultural & Resource Economics, UC Berkeley.
    10. Melis, Kristina & Campo, Katia & Breugelmans, Els & Lamey, Lien, 2015. "The Impact of the Multi-channel Retail Mix on Online Store Choice: Does Online Experience Matter?," Journal of Retailing, Elsevier, vol. 91(2), pages 272-288.
    11. Ancarani, Fabio, 2002. "Pricing and the Internet:: Frictionless Commerce or Pricer's Paradise?," European Management Journal, Elsevier, vol. 20(6), pages 680-687, December.
    12. Kathy Baylis & Jeffrey Perloff, 2002. "Price Dispersion on the Internet: Good Firms and Bad Firms," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 21(3), pages 305-324, November.
    13. Martin Berka & Michael B. Devereux & Thomas Rudolph, 2011. "Price setting in a leading Swiss online supermarket," CAMA Working Papers 2011-19, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hillen, Judith, 2018. "Web Scraping For Food Price Research," 58th Annual Conference, Kiel, Germany, September 12-14, 2018 275840, German Association of Agricultural Economists (GEWISOLA).
    2. Dominici, Andrea & Boncinelli, Fabio & Gerini, Francesca & Marone, Enrico, 2021. "Determinants of online food purchasing: The impact of socio-demographic and situational factors," Journal of Retailing and Consumer Services, Elsevier, vol. 60(C).
    3. Klumpp, M. & Ruiner, C., 2018. "Digitalization and Work Organization in New Urban Food Delivery Systems," 2018 International European Forum (163rd EAAE Seminar), February 5-9, 2018, Innsbruck-Igls, Austria 276876, International European Forum on System Dynamics and Innovation in Food Networks.
    4. Klumpp, Matthias & Ruiner, Caroline, 2018. "Digitalization and Work Organization in New Urban Food Delivery Systems," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 9(5), January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Fedoseeva, Svetlana & Herrmann, Roland & Nickolaus, Katharina, 2017. "Was the economics of information approach wrong all the way? Evidence from German grocery r(E)tailing," Journal of Business Research, Elsevier, vol. 80(C), pages 63-72.
    2. Grein, Theresa & Herrmann, Roland, 2016. "Price Setting in Online Grocery Markets: The Case of Chocolate," 2016 International European Forum (151st EAAE Seminar), February 15-19, 2016, Innsbruck-Igls, Austria 244457, International European Forum on System Dynamics and Innovation in Food Networks.
    3. Hillen, Judith, 2018. "Web Scraping For Food Price Research," 58th Annual Conference, Kiel, Germany, September 12-14, 2018 275840, German Association of Agricultural Economists (GEWISOLA).
    4. Zhenlin Yang & Lydia Gan & Fang-Fang Tang, 2007. "A Study of Pricing Evolution in the Online Toy Market," Economic Growth Centre Working Paper Series 0704, Nanyang Technological University, School of Social Sciences, Economic Growth Centre.
    5. Anindya Ghose & Yuliang Yao, 2011. "Using Transaction Prices to Re-Examine Price Dispersion in Electronic Markets," Information Systems Research, INFORMS, vol. 22(2), pages 269-288, June.
    6. David A. Jaeger & Karl Storchmann, 2011. "Wine Retail Price Dispersion in the United States: Searching for Expensive Wines?," American Economic Review, American Economic Association, vol. 101(3), pages 136-141, May.
    7. Michael R. Baye & John Morgan, 2005. "Red Queen Pricing Effects in E-Retail Markets," Working Papers 2005-07, Indiana University, Kelley School of Business, Department of Business Economics and Public Policy.
    8. Michael A. Arnold & Christine Saliba, 2003. "Price Dispersion in Online Markets: The Case of College Textbooks," Working Papers 03-02, University of Delaware, Department of Economics.
    9. Gerard J. Berg, 2006. "Revolutionary Effects of New Information Technologies," Economic Journal, Royal Economic Society, vol. 116(509), pages 10-28, February.
    10. repec:smu:ecowpa:1301 is not listed on IDEAS
    11. Tomasz Galewski, 2015. "Problems in measuring price dispersion in e-commerce," Working Papers 50/2015, Institute of Economic Research, revised Apr 2015.
    12. Zehao Chen & Yanchen Zhu & Tianyang Shen & Yufan Ye, 2021. "Reputation dependent pricing strategy: analysis based on a Chinese C2C marketplace," Papers 2109.12477, arXiv.org.
    13. Häring, Julia, 2003. "Different Prices for Identical Products? Market Efficiency and the Virtual Location in B2C E-Commerce," ZEW Discussion Papers 03-68, ZEW - Leibniz Centre for European Economic Research.
    14. Zhao, Dongmei & Savage, Scott J. & Chen, Yongmin, 2008. "Ownership, location and prices in chinese electronic commerce markets," Information Economics and Policy, Elsevier, vol. 20(2), pages 192-207, June.
    15. Lindgren, Charlie & Daunfeldt, Sven-Olov & Rudholm, Niklas, 2021. "Pricing In Retail Markets With Low Search Costs: Evidence From A Price Comparison Website," HFI Working Papers 18, Institute of Retail Economics (Handelns Forskningsinstitut).
    16. Xinxin Li & Bin Gu & Hongju Liu, 2013. "Price Dispersion and Loss-Leader Pricing: Evidence from the Online Book Industry," Management Science, INFORMS, vol. 59(6), pages 1290-1308, June.
    17. De los Santos, Babur, 2018. "Consumer search on the Internet," International Journal of Industrial Organization, Elsevier, vol. 58(C), pages 66-105.
    18. Enrico Bachis & Claudio A. Piga, 2006. "Hub Premium, Airport Dominance and Market Power in the European Airline Industry," Rivista di Politica Economica, SIPI Spa, vol. 96(5), pages 11-54, September.
    19. Wu, Kewen & Vassileva, Julita & Noorian, Zeinab & Zhao, Yuxiang, 2015. "How do you feel when you see a list of prices? the interplay among price dispersion, perceived risk and initial trust in Chinese C2C market," Journal of Retailing and Consumer Services, Elsevier, vol. 25(C), pages 36-46.
    20. Jifeng Luo & Han Zhang & Haizheng Li, 2018. "Pricing strategies in online book industry: a comparative study," Information Systems and e-Business Management, Springer, vol. 16(4), pages 791-816, November.
    21. Michael R. Baye & John Morgan & Patrick Scholten, 2006. "Information, Search, and Price Dispersion," Working Papers 2006-11, Indiana University, Kelley School of Business, Department of Business Economics and Public Policy.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:ijofsd:254120. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/centmde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.